1. PRESENTATION TO PORTFOLIO COMMITTEE ON SOCIAL DEVELOPMENT
Quarterly Financial & Performance Reports
03 June 2015

2. Presentation Outline
Background
Performance Report – Q3
Financial Report – Q3
Challenges
Recommendations

3. Purpose The purpose of the presentation is to:
Brief the Portfolio Committee on SASSA third quarter performance and financial report

4. BACKGROUND

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. Programme Performance Report
October- December 2014

9. Implementation of the Social Assistance Programme
Objective
To provide social assistance to qualifying/eligible beneficiaries
Planned Targets (annual)
Target is to reach at least 1.1m new beneficiaries p.a
Achieved
A total of new applications were processed in Q2. This brings a total number of applications processed from April to September to (66% of the annual target).
A total of new applications were processed in Q3.
The total number of applications processed from April to December was (95% of the annual target);
(90%) were approved;
(5%) were rejected; and
(5%) were outstanding.

10. National Applications: April to December 2014

11. Implementation of Social Assistance Programme
Objective
To provide social assistance to qualifying/eligible beneficiaries.
Planned Annual Target
To increase the number of grants in payment from to
by the end of 2014/15.
Achieved
16,443,196 social grants were in payment at the end of the third quarter. This represents an increase of 37,343 social grants or 0.2% from the preceding quarter.
The annual target has been exceeded by (Due to higher take up of Grant In Aid and Care Dependency Grants).
Grant-in-Aid had the highest percentage increase of 9%, followed by the Care Dependency Grant at 1.4%.
Lapsed Grants: A total of social grants were lapsed between April to December 2014 of which were lapsed in Q3.

12. Table of the Take Up of Social Grants Per Grant Type
Beginning of October
End of October
End of November
End of December
Difference/ Change
Growth in percentage
CDG
124,225
124,955
125,317
126,010
1,785
1.4%
CSG
11,480,576
11,572,790
11,570,249
11,574,493
93,917
0.8%
FCG
553,223
556,074
559,202
455,946
(97,277)
-17.6% DG
1,124,770
1,131,479
1,137,351
1,127,867
3,097
0.3%
GIA
96,433
99,378
102,916
105,087
8,654
9.0%
OAG
3,026,260
3,036,714
3,046,893
3,053,440
27,180
0.9%
WVG
366
362
357
353
(13)
-3.6%
Total
16,405,853
16,521,752
16,542,285
16,443,196
37,343
0.2%

13. Growth of Social Grants Per Region (cont…)
Province
Beginning of October
End of October
End of November
End of December
Difference/ Change
Growth in percentage EC
2,690,278
2,707,680
2,706,391
2,684,342
(5,936)
-0.2% FS
953,116
957,612
959,247
949,208
(3,908)
-0.4% GP
2,267,347
2,286,531
2,293,680
2,283,324
15,977
0.7%
KZN
3,853,324
3,880,497
3,882,731
3,855,957
2,633
0.1% LP
2,282,300
2,297,629
2,298,497
2,285,365
3,065 MP
1,367,147
1,376,012
1,377,060
1,372,678
5,531
0.4% NW
1,154,256
1,160,887
1,163,141
1,155,074
818 NC
438,522
441,632
442,731
439,540
1,018
0.2% WC
1,399,563
1,413,272
1,418,807
1,417,708
18,145
1.3%
Total
16,405,853
16,521,752
16,542,285
16,443,196
37,343

14. Number and Percentage of Social Grants per Region and Grant Type (cont…)
OAG
WVG DG
GIA
CDG
FCG
CSG
Total
% of total EC
524,974 53
182,711
15,541
19,139
101,799
1,840,125
2,684,342
16.3% FS
180,603 6
76,882
1,944
6,356
33,722
649,695
949,208
5.8% GP
472,814 89
110,187
2,748
16,017
50,541
1,630,928
2,283,324
13.9%
KZN
626,525 44
291,552
36,595
36,385
112,946
2,751,910
3,855,957
23.5% LP
427,456 23
93,580
18,757
13,116
50,195
1,682,238
2,285,365 MP
223,657 16
79,205
4,766
9,434
32,054
1,023,546
1,372,678
8.3% NW
230,839 12
86,168
6,833
8,941
33,912
788,369
1,155,074
7.0% NC
78,432 10
50,482
6,354
4,775
12,837
286,650
439,540
2.7% WC
288,140
100
157,100
11,549
11,847
27,940
921,032
1,417,708
8.6%
3,053,440
353
1,127,867
105,087
126,010
455,946
11,574,493
16,443,196
100.0%
% total
18.57%
0.00%
6.86%
0.64%
0.77%
2.77%
70.39%
100.00%

15. 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 children (0-1) in payment was 519,839. This represents 44.1% of the children in this age category.
The numbers increased by 3709 or 0.7% from the previous quarter.
The breakdown of children’s grants in payment for 0-1 are: CSG 519,257; CDG 336; FCG 246.

16. Implementation of the Social Assistance Programme
Objective
Improve the management of Social Relief of Distress by ensuring qualifying beneficiaries are not disadvantaged.
Planned Targets (annual)
SRD applications will be processed per annum over the next three year
Achieved
60,077 applications processed
Cash – Q3: ; Q2: ; Q1:
Food parcels – Q3:35 446; Q2:58 974; Q1:62 310
Vouchers – Q3: ; Q2:32 154; Q1:73 339
Other – Q3: ; Q2:
Total Expenditure R93,004,152 for the 3rd quarter.

17. 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
Upgrading of local offices and acquisition of new offices in areas of high need.
Achieved
Turnaround time for processing of grants applications is on average 21 days.
97.04% of applications were processed within 21 days,0.81% increase from the previous quarter.
0.26% of the applications were processed after 21 days(mainly disability grants)
5 local offices and
10 pay points were improved in the 3rs quarter.

18. Service Delivery Improvement
Objective
Improving conditions under which beneficiaries are served
Target
420 ICROP/ Mikondzo interventions
Achieved
ICROP interventions were held in 247 wards in Q3.
Region
Wards:Q3
Wards:Q2
Wards:Q1
E.C. 54 39 15
F.S. 13 18
G.P 16 21 6
KZN 47
247 25
LIMP 23 33 4
MPU 17 8
N.C. 52
106 31
N.W. 11 14 9
W.C. 30 92
TOTAL
593
170

19. Future Payment System Objective
Improvement in the Payment of Social Grants
Planned Targets (annual)
Implementation of the Payment Tender
Plans for SASSA is to take total responsibility for the payment of social grants in 2017/19.
Achieved
Tender Process: As directed by the ConCourt, SASSA extended bid deadline in order to amend tender documents.
Future: TOR for appointment of project management company to oversee the workstreams were circulated for comments.
Peer Review: International experts working in similar environment were invited to assess the which elements of the current system form basis for SASSA’s future plans. Northern Ireland Social Security Agency visited and the experts from the NISG had to postpone their visit to end of fourth Quarter
Biometric Standards project is in progress

20. Improved Administration: Automation
Objective
Establishing a credible National payment database through re-registration programme.
Planned Targets (annual)
Improvement of ICT Infrastructure
Biometric Authentication of users
Cleaning of re-registration data
Achieved
Connectivity to business systems in all SASSA Local offices has improved.
Project between the CSIR and SASSA on Biometrics has commenced.
Preliminary findings data integrity was presented by CSIR.

21. Improved Administration: HCM
Objective
Effective and efficient administration (Human Resource)
Achieved
Identified critical posts filled in Q3:
The total number of posts budgeted for at various levels is 10, As at end September 2014 there was a total of 9,699 personnel in the system. (93.5% of funded posts filled)
New appointments: 47(17 permanent and 30 contract)
Terminations: 234 (Contract 138, permanent 96 and transfers 8).
2 HCM policy were reviewed (Leave and Performance Management)
1 labour relations case was reported and is in the process of investigation

22. Improved Governance Objective
To promote good governance and accountability
Planned Targets (annual)
Reduction of audit findings - Unqualified Audit
Reduction of Fraud, theft and corruption
Reduction in litigations
Achieved
Fraud Management: From 1 October to 31 December 2014, a total of 235 cases were received, and 588 investigated of which were from Q2.
IA: 9 Internal audit reviews were done on high risk areas
Legal: 238 letters of demand were received and responded to

23. Fraud Management: 2014/15
The target for the financial year 2014/15 remains 60% of identified fraud and corruption cases to be investigated.
The regions’ investigation average for Q3 is 250%, representing an overachievement of 100%.
From 1 October to 31 December 2014, a total of 235 cases were received, and 588 investigated of which 353 were from Q2.

24. Fraud Management: 2014/15 Region Quarter One (1 Apr to 30 Jun 2014)
Quarter Two (1 Jul to 30 Sept 2014)
Quarter Three (1 Oct to 31 Dec 2014)
Nr Rec
Nr inv %
Head Office 5 22
440% 1
100% -
Gauteng 50
111
222%
100
113
113% 72 73
101%
North West 6 7
117% 3
43% 10
143%
Free State 20 37
185%
102
276% 88
400%
Northern Cape 9
180% 27
450% 4
Western Cape 46
128
284% 52
202
388% 33
136
412%
Eastern Cape 25
28% 43 64
149% 28 35
125%
KwaZulu Natal 49
57%
178
173
97% 41
199
485%
Mpumalanga 31 76
245% 19
68% 14 16
114%
Limpopo 24
153
637% 32 71
193%
Total
261
578
221%
484
775
160%
235
588
250%

25. Litigation Q3: 2014/15
Total of 7 litigation matters were dealt with during the third quarter.
Types of cases:
2 - Social Grants (reconsideration and suspension)
2 – PAIA
1 – GEPF (release of pension fund)
1 – MVA
1 – SCM (review and set aside of RFP)
Distribution: The cases were mainly from the following offices – HO 2 (1 PAIA; 1 SCM); EC 1 (1 social grant), KZN 1 (1 social grant); MP 3 (1 MVA, 1 PAIA, 1 GEPF).
The total amount of litigation costs as at the end of the third quarter is R and is inclusive of the matters that were dealt with in the previous financial years, commencing from 2011.

26. Litigation OFFICE FIRST QUARTER SECOND QUARTER THIRD QUARTER HO
2 (Labour disputes)
5 Cases
2 Labour;
1 Contractual;
1 Delictual claim; and 1 IEC matter)
2 (1 PAIA and 1 SCM) EC
27 (26 Grant related and 1 PAIA)
13 (5 alleged wrongful suspensions; 2 labour; 6 social grants)
1 (Social Grant) FS GP
KZN
12 (11 Grant related and 1 MVA )
47 (46 Grant related; 1 labour) LP MP
3 (1 PAIA; 1 MVA; 1 GEPF) NC NW WC
1 (Labour)
Total 41 66 7

27. Summary of Performance of the Third Quarter compared to Second Quarter
SASSA had a total number of 26 APP targets planned for the second quarter.
62 % of the quarterly targets were fully achieved and 3% were partially achieved.

28. Financial Performance Report

29. Expenditure per economic classification

31. Expenditure per key cost driver

32. Notes to the level of spending
Compensation of employees:
Some of the vacant funded posts were not yet filled during the period under review thus the under spending on this item. The total number of posts budgeted for at various levels is 10,375. As at end September there was a total of 9,699 personnel in the system.
Goods and services
-The significant underspending on:
-Communication due to the telephone management system
- Cash handling 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

33. Risks and Challenges
Payment Tender - delays due to ongoing court challenges
Decreasing financial resources
Fraud, theft and corruption
Disasters – pressure on the SRD
Unintended consequences of the payment process - deductions

34. Recommendations It is recommended that the Portfolio Committee
note and support SASSA’s the quarterly financial and programme performance reports for the period of October to December 2014

35. Thank you