1. Presentation to the Portfolio Committee on Social Development
Annual Report 2014/15

2. Purpose of the Presentation
The purpose of this presentation is to present to the Portfolio Committee on Social Development SASSA 2014/15 Annual Report; focusing on:
Performance Information;
Budget and Expenditure 2014/15; and
Audit outcomes .

3. Presentation Outline Overview
Programme Performance Information - Achievements against /15 Strategic Priorities
Budget and Expenditure for 2014/15
Summary of Audit Outcomes; and
Challenges

4. Overview

5. VISION MISSION SASSA’s Slogan
“A leader in the delivery of social security services”
MISSION
To administer quality customer-centric social security services to eligible and potential beneficiaries.
SASSA’s Slogan
Paying the right social grant, to the right person,
at the right time and place. NJALO!

6. STRATEGIC OUTCOME ORIENTED GOAL OF SASSA
Expand access to social assistance and creating a platform for future payment of social security benefits.
GOAL STATEMENT
To render social assistance to eligible beneficiaries

7. Key priorities for 2014/ /19
The primary focus of SASSA will be on:
Reducing income poverty by providing social assistance to eligible individuals
Improving service delivery
Improving internal efficiency
Institutionalising social grants payment system within SASSA

8. Strategic Objectives
Strategic Objectives for SASSA for the reporting period were:
to ensure that eligible beneficiaries receive benefits due to them;
to improve the quality of service delivery to our customers;
to achieve a fully integrated and automated social assistance service; and
to ensure that the Agency is optimally capacitated for optimal service delivery.

9. Performance against the 2014/15 Priorities
PERFORMANCE INFORMATION
Performance against the 2014/15 Priorities

10. Implementation of the Social Assistance Programme
Objective
To provide social assistance to qualifying/eligible beneficiaries
Planned Targets
Target is to reach at least 1.1m new beneficiaries p.a
Achieved
Total annual progress achieved :
The total number of applications processed from April 2014 to March was (125% of the annual target);
(94.5%) were approved;
(5.1%) were rejected; and
5 951 (0.4%) were outstanding.

11. Implementation of Social Assistance Programme
Objective
To provide social assistance to qualifying/eligible beneficiaries.
Planned Target
To increase the number of grants in payment from to
by the end of 2014/15.
Achieved
social assistance benefits were in payment as at end of financial year
are children’s grants;
are older person’s grants;
disability grants;
There was a 4.46% increase in the growth of social grants
Lapsed Grants: A total of social grants were lapsed between April 2014 to March 2015.

12. Social Grants Trends
Number of grant benefits and percentage growth over a nine year period by grant type
Grant Type
2006/07
2007/08
2008/09
2009/10
2010/11
2011/12
2012/13
2013/14
2014/15
Old Age 2  2 
War Veteran
2 340
1 9 24
1 500
1 216
958
753
587
429
326
Disability 1  1 
Grant in Aid
31 918
37 343
46 069
53 237
58 413
66 493
73 719
83 059
Care Dependency
98 631
Foster Child
Child Support 7  8 
Total
12 
12 
Annual Growth
7.50%
6.20%
4.42%
3.27%
-1.08%
4.46%
Source: SOCPEN System

13. Social Grants trends conti…
Social Grant Expenditure per Grant type over nine-year period
Grant Type
2006/7
R’000
2007/8
R‘000
2008/09
2009/10
2010/11
2011/12
2012/13
2013/14
2014/15
Old Age
War Veteran
25 000
21 845
19 692
16 644
13 976
11 848
9 543
7 657
6 157
Disability
Foster Child
Care Dependency
Child Support
Grant in Aid
SRD
Total R R R R R R R R

14. Social Grants Trends: growth rates (2013/14 vs. 2014/15)
Region
2013/14
2014/15
Difference/Change
% Growth
Eastern Cape
2,620,284
2,718,472
98,188
3.75%
Free State
934,766
960,774
26,008
2.78%
Gauteng
2,184,193
2,317,903
133,710
6.12%
Kwazulu-Natal
3,761,662
3,886,115
124,453
3.31%
Limpopo
2,222,730
2,315,499
92,769
4.17%
Mpumalanga
1,325,217
1,389,054
63,837
4.82%
North West
1,120,034
1,170,505
50,471
4.51%
Northern Cape
424,815
446,260
21,445
5.05%
Western Cape
1,338,772
1,438,061
99,289
7.42%
Total
15,932,473
16,642,643
710,170
4.46%
GP and WC had the highest growth due to intensified campaigns to reach excluded children

15. Social Grants Trends cont…
Number of grant benefits by grant type and region as at 31 March 2015
Region
OAG
WVG DG
GIA
CDG
FCG
CSG
Total
% of total EC 47
16 391
19 165
16.30% FS 5
75 526
2 095
6 385
37 985
5.80% GP 89
2 989
16 170
53 411
13.90%
KZN 38
39 333
36 471
23.40% LP 21
93 428
21 228
13 266
57 694 MP 14
78 487
5 154
9 572
34 260
8.30% NW 11
85 517
7 217
8 940
37 984
7.00% NC
79 080 9
50 787
6 587
4 787
14 513
2.70% WC 92
12 093
12 021
29 573
8.60%
326
100%
% total
18.55%
0.00%
6.69%
0.68%
0.76%
3.00%
70.32%

16. Implementation of the Social Assistance Programme
Objective
Provide Social Relief of Distress to families experiencing hardship and thus require immediate interventions.
Planned Targets
SRD applications will be processed per annum over the next three years.
Achieved
SRD applications were awarded against the annual target of 160 000, which represents 121% over achievement.
Cash –
Food parcels –
Vouchers –
Other –
Total Expenditure stands at R461million. Additional budget was allocated to this programme due to increased demand emanating from disasters, increase in numbers of children with malnutrition and others forms of distress

17. Implementation of the Social Assistance Programme
Objective
Reduction of inclusion and exclusion errors in the social assistance programme
Planned Activities
To reach 70% of the children age between 0-1 who are eligible fro CSG.
Achieved
Total number of childrens’ grants (0-1) in payment was This represents 51% of the children in this age category.
There was an increase of from the 2013/14 financial year as a result of the ICROP programme.
The breakdown of children’s grants in payment for are: CSG 596,920; CDG 324; FCG 215.

18. Service Delivery Improvement
Objective
Improving conditions under which beneficiaries are served
Annual Targets
Progressively reducing the turnaround time for processing grants to an average of 10 days by 2016
Achieved
Turnaround time for processing of grants applications is on average 21 days.
99.68% ( out ) applications were processed within 21 days. A significant number of this applications were processed within 1 day.
0.32% of the applications were processed after 21 days (mainly disability grants).

19. Improvement of Service Delivery
Objective
Taking service delivery to the people
Planned Target
ICROP/ Mikondzo: Target was to conduct 420 outreach programmes inclusive of Mikondzo
Achieved
714 outreach programmes inclusive of Mikondzo were conducted and services were provided.
This represents a 70% over achievement against the annual target as SASSA was targeting exclusion per UNICEF Report.

20. Payment System Objective Improvement in the Payment of Social Grants
Planned Targets
Implementation of the Payment Tender
Achieved
The payment tender was processed in line with the Constitutional Court ruling.
There were further court challenges during the implementation process, which led to an amendment of the revised RFP and extension of the bid deadline.

21. Payment System Objective Improvement in the Payment of Social Grants
Planned Targets
Planning for SASSA is to take total responsibility for the payment of social grants in 2017/19.
Achieved
Ministerial Advisory Committee report recommended the insourcing of the payment system in SASSA.
Feasibility report on the technology solutions required for insourcing has been completed.
Situation analysis of the payment process focusing on broader SASSA CPS arrangement and the extent to which it fits in the SA payments sector.
Workstreams have been proposed to facilitate implementation of the recommendations by the Advisory Committee.

22. Improved Administration: Automation
Planned Targets
Improvement of ICT Infrastructure
Achieved
98% of local offices are equipped with computers, printers and network connectivity to speed up processing of social grants.
A strategic Architecture and ICT 5 year road map was developed.
The road-map provides an integrated secure end-to-end solution, enable automation of business services and provide optimal on-going support to the organisation.
The SOCPEN system was continuously enhanced to improve the effectiveness and efficiency of the administration of social assistance.
A Business Intelligence solution was procured to enhance the management of information and reporting within SASSA.
During the period under review SASSA has initiated the process for the automation of its records management.

23. Improved Fraud management
Planned Targets
60% of reported fraud and corruption cases investigated
Achieved
Out of reported fraud and corruption cases received, were investigated which represents 72% achievement against the annual target of 60%.
The focal areas were grant administration, information and communication technology and supply chain management.
A total of 266 officials were suspended and 53 dismissed as at 31 March 2015.

24. Improved Fraud management (cont…)
Planned Targets
60% of reported fraud and corruption cases investigated
Achieved
Law enforcement agencies referrals and arrests
11 cases were referred to Law Enforcement Agencies and 5 officials were convicted
94 money-lending cases were reported, implicating 64 suspects who were in possession of 350 SASSA cards and R in cash.
16 private persons including three CPS officials with 280 SASSA cards were apprehended. A speed-point machine and a laptop (linked to 2 separate robbery incidents at the SASSA offices in KZN) were recovered.
13 private persons turned state witness.
Convictions
2 CPS officials were sentenced to 15 years each, 1 out fined R (R paid and R6 000 suspended for 5 years), while 1 CPS official is still on trial.
3 SASSA officials were arrested and dismissed, their case is still under investigation for having created 55 ghost beneficiaries, amounting to R

25. Implementation of the Legal Services Model
A total of 143 litigation cases handled. These include grant related litigation, labour disputes, contractual claims, motor vehicle accidents and procurement related matters
OFFICE
2013/2014
2014/2015
Total Difference
Number
R Value
SASSA: HO 1 10 9
Eastern Cape 43 57 14
Free State -1
Gauteng
KwaZulu-Natal 12 72 60
Limpopo
0.00
Mpumalanga 2
Northern Cape
North West -2
Western Cape
Total 62
143 81

26. Improved Human Resources Management
Objective
Effective Human Resource Management
Planned Targets
Reduction of funded vacant posts
Achieved
A total of posts were filled as at the end of the period under review.
1 953 Appointments
315 new appointments
471 contract appointments
1 055 EPWP workers and 112 interns were appointed
Of these appointments 356 were internal promotions
1.1% (117 out of a target of 215) people with disabilities are employed within the agency

27. Human Resource Management
SASSA further experienced the following challenges affecting key positions during the period under review:
The Regional Executive Manager of the Northern Cape region retired in March 2015.
The Regional Executive Manager of Limpopo was transferred to the Gauteng region in April This was necessary to ensure the stability of the Gauteng region as it is one of SASSA’s biggest regions.
At the end of the financial year, the Agency was in the process of filling the following key positions: The CFO, CIO , and REM (LP and NC)
As at 01 April 2015 the agency had 650 vacant funded posts with an estimated salary bill of R 213 million.

28. Improved Human Resources Management
Objective
Effective Human Resource Management
Planned Targets
100 % labour relations cases initiated within prescribed times
Achieved
A total of 445 labour relations cases were initiated within prescribed times
Outcomes:
195 verbal warning
100 written warning
90 final written warning
60 Dismissals

29. Improved Financial Management
Objective
Effective Financial Management
Planned Targets
100% of suppliers paid within 30 days
50% Reduction in irregular expenditure
Achieved
82 % (5 137 out of 6 216) suppliers were paid within 30 days
42% reduction in irregular expenditure

30. Improved Financial Management
Objective
Effective Financial Management
Planned Targets
10 % of social assistance debts recovered
Achieved
12.65 (R32.5m out of R257m) of social assistance debt recovered and/or written off.
R26m write off
R5.7m debt recovery
11% (R ) of ex-staff debt was recovered out of a target of 50% (R1.1 m).

31. 2014/15 Audited financial outcomes
FINANCIAL INFORMATION
2014/15 Audited financial outcomes

33. Expenditure per economic classification

35. Notes to the level of spending
Compensation of employees
A number of vacant funded posts were not filled at financial year-end that resulted in 4% underspending that included time delayed savings in filling of posts.
These include senior management posts such as the posts of Chief Financial Officer, Chief Information Officer, Regional Executive Manager: Limpopo and NC etc.
Some of the posts were at various stages of the recruitment process. As at 01 April 2015 the agency had 650 vacant funded posts with an estimated salary bill of R 213 million.
Goods and services: The under spending was mainly on:
Communication due to the telephone management system efficiencies
Cash handling fees due to the reduced cost of disbursing grant monies
Leases due to offices that were in the process of being occupied
Travel and subsistence due to spin-offs from cost containment measures

36. Auditor-General Report and Comments

37. Auditor General Report and Comments
AGSA’s opinion – Unqualified Audit. The AG found that:
SASSA’s financial statements present fairly the financial position of the Agency as at 31 March 2015 except for few adjusted misstatements
SASSA’s financial performance and cash flows for the year were in accordance with SA Standards of GRAP, PFMA and SASSA Act requirements
Predetermined objectives
Reliability of information: The has been significant improvement on the report on predetermined objectives concerning the usefulness and reliability of the information.

38. Other audit matters
Misstatements in terms of operating leases commitments disclosed
Shortcomings identified with the reimbursement of costs (R316 million) incurred towards Cash Paymaster Services in respect of additional resources procured for the re-registration project.
Poor turnaround time to finalize financial or possible financial misconduct cases

39. CHALLENGES

40. Challenges Challenges Mitigation Unauthorised Deductions
Short term: Beneficiary Support Plan & Dispute Resolution Mechanism
Long Term: New Tender prohibits any form of deduction other than Regulation 26 (A)
Impact of Load Shedding on connectivity of Systems
All SASSA offices have been instructed to purchase generators
SRD – high demand resulting in high budget pressures
Short term
reduced the value of the SRD;
utilising savings from other low spending grants
Long term
Motivated for additional allocation
Ongoing court challenge – Payment Tender
The process will be finalised by the 15 October 2015

41. Recommendations
It is recommended that the Portfolio Committee on Social Development note and support
SASSA 2014/15 Annual Performance Report;
SASSA financial statements for 2014/15; and
Challenges and the mitigation strategies that the Agency is implementing .

42. Thank you 45 45