1. SASSA ANNUAL PERFORMANCE PLAN & BUDGET 2019/20
Presentation to the Portfolio Committee on Social Development

2. Presentation Outline Overview Background Summary of past performance
Programmes Performance Plans 2019/20
SASSA 2019/20 Financial Plan
Risks and Challenge
Recommendations

3. Purpose
The purpose of the presentation is to brief the Portfolio Committee on Social Development on
SASSA’s Annual Performance Plan for /20 financial year;
Highlight priority areas for the Agency for /20; and
SASSA 2019/20 budget allocation.

4. Overview

5. Introduction
SASSA is a Schedule 3A Public Entity established in April in terms of an Act of Parliament (SASSA Act, 2004)
The objective of SASSA is to
act, as the sole agent that will ensure the efficient and effective management, administration and payment of social assistance; and
eventually serve as an institution to manage broader social security benefits
The social assistance programme and the operations of SASSA are fully funded by government.
The Social Assistance Act of 2004 provide the legal framework for the provision of social assistance
Aligned to NDP outcome 13 sub-outcome 4

6. Alignment to the National Development Plan
NDP OUTCOME RELEVANT TO SASSA
Outcome 13: An inclusive and responsive social protection system
SUB- OUTCOME (SO)
Sub-outcome (SO) 4: Deepening social assistance and extending the scope for social security.
SASSA STRATEGIC OUTCOME ORIENTED GOAL
Expand access to social assistance and creating a platform for future payment of social security benefits.
SASSA GOAL STATEMENT
To render social assistance to eligible beneficiaries

7. Overview Vision Mission SASSA’s Slogan
“A leader in the delivery of social security services”
Mission
To administer social security services to eligible children, older persons and people with disabilities.
SASSA’s Slogan
Paying the right social grant, to the right person,
at the right time and place. NJALO!

8. SASSA Strategic Priorities
Primary focus of SASSA in the medium term:
Reducing income poverty by providing social assistance to eligible individuals;
Improving service delivery;
Improving organisational efficiency;
Institutionalising social grants payment system within SASSA.

9. SASSA Strategic Priorities
Primary focus of SASSA during the MTSF:
Reducing income poverty by providing social assistance to eligible individuals;
Improving service delivery;
Improving organisational efficiency;
Institutionalising social grants payment system within SASSA.

10. SASSA 2019/20 Strategic Objectives
To improve the effectiveness and efficiency of the administration of the social assistance programme;
To provide human capital management, facilities and auxiliary services;
Effective information and communication technology;
Effective financial management; and
To uphold good governance.

11. Programmes’ Structure
Programme 1: Administration
Sub-programme 1.1: Executive Management
Sub-programme 1.2: Corporate Services
Sub-programme 1.3: Information and Communication Technology
Sub-programme 1.4: Financial Management
Programme 2: Benefits Administration and Support
Sub-programme 2.1: Benefits Administration
Sub-programme 2.2: Payment Administration

12. SASSA Fact sheet SASSA has: Approximately 8 269 staff
9 Regional & 46 District Offices
389 local offices
1 163 Service points
38 Mobile Trucks
1740 Contracted pay-points
1 National Call Centres
R7.7 billion admin budget
Our customers
Older persons, people with disabilities and children
Approx. 32% of the population benefitting
Social Assistance transfers - R162 billion p.a
SASSA Offices
SASSA Re-aligned pay-points

13. ORGANISATIONAL STRUCTURE
THE SOUTH AFRICAN SOCIAL SECURITY AGENCY
Chief Executive Officer
Ms:TBJ Memela-Khambule
Internal Audit & Risk Management
EM: Ms MT Sibanyoni
Corporate Services
(Vacant)
Finance
CFO: Mr TJ Chauke
ICT
CIO: Mr AS Mahlangu
Grants Operations
Policy Implementation Support
EM: Ms ED Dunkerley)
Strategy and Business Development
EM: R Ramokgopa
Chief Operations Officer
SASSA Regional Offices
1. GP: Mr MT Matlou
2. EC: Mr BB Maqetuka
3. NW: Ms ZE Mvulane
4. FS, KZN, LP, NC,MP & WC - Posts Vacant
Interim Arrangements for vacant posts
Ms T Sibanyoni has been appointed to oversee Branch Corporate Services – GMs under Internal Audit and Risk Management report directly to CEO
Vacant Regional Executive Managers posts (6) have incumbents acting in the positions

14. Summary of Agency Performance
Administration
2014/15
2015/16
2016/17
2017/18
2018/19
Performance against targets %
64%
55%
45%
74%
(Unaudited)
Budget Exp /19
96%
101%
104%
100%
84%
Audit Outcome – AFS
Unqualified
Qualified
Audit still in process
Irregular Exp. Cumulative R
R93 m
R1.140 b
R b
R1.711 b
R1,832 b
No of staff/ Employees (Perm) N
7114
8464
8544
8403
8 269

15. Summary of Agency Performance - Administration
Plan: Ensure expenditure is on key priorities and is aligned to performance
Plan: improve performance to 90% over the MTSF
Plan: Realign to new priorities
Plan: Reduce and/or eliminate irregular expenditure

16. Summary Debt Portfolio as 31 May 2019

17. Summary of Agency Performance – Services to Beneficiaries
SASSA currently pays 17.8 million social grants to approximately beneficiaries (adult recipients).
CSG - 12,452,072; Old Age - 3,553,317; Disability Grant - 1,048,255
The breakdown of the payment method for the beneficiaries as at June 2019:
71% ( ) - Post Bank. (Significant increase from April where only beneficiaries were paid through Post Bank).
9.3% ( ) - Grindrod Bank (Significant decrease from April where only 7.8 million beneficiaries were paid through Grindrod Bank).
The balance just over 19.5% ( ) were paid by other banks. Capitec has the largest number of beneficiaries after Post Bank and Grindrod, with beneficiaries of the total number of beneficiaries.

18. Total Number of Social Grants Paid
NUMBER OF SOCIAL GRANTS PER PROVINCE
Prov.
Population Est. 2017
Social Grants as at March
Grants as a % of the total population EC
43.25 FS
35.48 GP
18.74
KZN
34.93 LP
43.75 MP
33.76 NW
32.17 NC
39.76 WC
24.58
Total
31.51
Grant Type
Value of the Grant Per Month
Number of grants types
Care Dependency R
150,001
Child Support R
12,452,072
Foster Care R
386,019
Disability
1,048,255
Grant In Aid R
221,989
Old Age
R 1 780/
R (>75)
3,553,317
War Veterans
R 1 800 92
TOTAL

19. Summary of Agency Performance
Services to Beneficiaries
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
No of Social Grants N
15,932,473
16,642,643
16,991,634
17,200,525
17,509,995
17,811,745
Annual growth %
-1.1%
4.5%
2.1%
1.23%
1.80%
1.72%
No of Social grants beneficiaries
9,747,354
10,158,793
10,425,820
10,596,903
10,854,183
11,033,505
No. of application processed per annum
1,311,469
1,379,253
1,767,639
1,879,055
2,113,499
2,149,161
Number of Children 0-1 in Payment from (% of total pop. in age group
458,827
596,920
499,257
542,505
528,869
567,513
Social Relief of Distress (Amounts and no. of awards) R
R509,256
R455,718
R407,015
R587,638
R484,123
R416,720
325,388
353,678
366,769
461,750
572,406
443,687
Social assistance Budget
R109 billion
R119 billion
R128 billion
R138,9 billion
R150 billion
R billion

20. Summary of Agency Performance – Services to beneficiaries

21. Summary of Agency Performance – Services to beneficiaries (cont…)
COOPERATIVES UTILISED AND BENEFITED BY SASSA FOR THE FINANCIAL YEARS AND
REGION
No. of cooperative
2017/18
2018/19
SRD
School Uniforms EC
212 R
R ,187,007.35
R ,618,728.25 FS 29
R ,115.00
R ,107,933.42
R ,500.00
R ,006,456.00 GP 75
R 10,682,428.92
R ,279,981.42
R 15,728,619.98
R ,551.00
KZN 48
R 1,424,990.00
R ,119,916.07
R ,924,770.00 LP 6
R ,370,807.00 R MP 65
R ,078,514.87
R ,761,914.33 NC 30
R ,256.00
R ,291,246.00
R ,557.88 NW 64
R 1,402,400.64
R ,083,790.22
R ,219.95
R ,423,915.00 WC 35
R 1,806,535.00
R ,850.00
R 1,369,493.00
R ,062.00
TOTAL
 564
R 15,713,725.56
R 89,307,046.35
R 17,849,832.93
R 14,060,954.46

22. Payments Management Journey
2006 – 2011
ACB (Commercial Banks)
SAPO
Institutions
AllPay (WC, FS, GP and Parts of the EC)
Cash Paymaster Services (CPS)
KZN NC EC LP
EMPILWENI - MP
(Contract with CPS)
All payments co-ordinated by CPS
Beneficiaries paid using multiple channels
ATM (Biometric CVM)
ATM (PIN CVM)
CPS (Biometric CVM)
Merchant Acquiring (Biometric CVM)
Retail (PIN CVM)
Direct ACB from CPS to personal accounts
2018 – To date
Beneficiaries paid in terms of Regulation 21 A &B
Commercial Banks (30%)
Method determined by SASSA (SAPO- 70%)
Distribution by SAPO include NPS, Over the Counter and Cash Pay-points (1740)
SDA – new SASSA/SAPO Card 22

23. Key Focus Areas by the Accounting Authority
Deal with corruption and Fraud - current and past
Invest in a robust risk management regime and strong and investigation team
1) Clean state owned entity:
Setting up appropriate governance and regulatory environment to manage Agency affairs;
Strong and Robust Financial management regime
Putting in place measures to manage costs (austerity measures) 
2) Governance of our entity as a Section 3A institution
Management of contractual arrangements and SLA;
Understanding of and management of the SAPO/Postbank systems and systemic risks
3) SAPO/Postbank system experience
Customer Service - putting our customers first
Business Modernization and Process engineering;
People management and “deployment” 
preparation for the demands of the 4th industrial revolution
4) Business Transformation agenda:
New Culture and Values
Working together
honestly and serving our people with integrity AND
Leading with Heart and Passion
5) Organizational RENEWAL in the 6th Administration

24. Programmes’ Performance Plans

25. Programme 1: Administration25

26. Improved Organizational Efficiency
Objectives
Status as at 31 March 2019
Planned 2019/20 Targets
To uphold good governance
SASSA was able to finalise 95% (627 out of 662) of reported fraud, theft and corruption cases by March 2019.
Investigate reported fraud, theft and corruption cases
70% of reported cases; and
Review the Fraud Management strategy to align with latest development including the SASSA/SAPO agreement.
Quarterly progress reports on current register were compiled and presented to National Treasury, and new risks were identified for inclusion in 2019/20 register.
Maintain an updated Strategic Risk Register

27. Improved Organizational Efficiency
Objectives
Status as at 31 March 2019
Planned 2019/20 Targets
To uphold good governance
30 Internal Audit reviews were conducted in areas such
AFS, performance information, social grant payment transition, card swap, SRD, Biometric enrolment
Conduct internal audit reviews on high risk areas – 20 Reviews
SASSA received a qualified audit opinion from the AGSA in the last two years.
Matters of emphasis were related to irregular expenditure and the completeness of the registers of irregular expenditure.
Achieve an unqualified audit outcome. Measures to be implemented in this regard include:
Improving internal controls
Reducing irregular expenditure
Implementing consequence management
Pre-audit of contracts
Implementation of Audit action plan

28. Improved Organizational Efficiency
Objectives
Status as at 31 March
Planned 2019/20 Targets
To provide efficient human capital management
Review of interim Organisational structure was halted due to labour dispute re: implementation of the beneficiary biometric enrolment function that was later suspended (October 2018) .
Review the organisational structure to incorporate new payment administration functions particularly the Beneficiary Enrolment
Commence with the organisational Review process
Finalise Terms of Reference; and
Appoint a service provider to conduct SASSA Business Process Re- engineering (BPR) process
SASSA finalised 68% (224 of 330) of labour relations cases across the regions.
Finalise labour relations cases within prescribed timeframes – 60% cases finalised.

29. Improved Organizational Efficiency
Objectives
Status as at 31 March 2019
Planned 2019/20 Targets
Infrastructure planning
A draft SASSA Ten-Year building infrastructure was developed and consultations conducted.
The plan is meant to address the following SASSA Infrastructure challenges:
Shortages of suitable facilities;
Upgrading and repairs of existing facilities;
Acquisition plan;
Rehabilitation plan;
Maintenance plan; and
Disposal plan.
SASSA Ten-Year building infrastructure plan finalized and adopted.
The plan will be supported by the revised property management strategy

30. Improved Organizational Efficiency
Objectives
Status as at 31 March 2019
Planned 2019/20 Targets
ICT Good Governance to Improve Fraud and Risk Management capabilities
SASSA has procured a biometric solution (Identity Access Management) for users.
The solution contract has since been varied to accommodate beneficiaries’ biometric enrolment.
Beneficiaries’ biometric enrolment infrastructure was deployed to local offices and enrolment commenced in 2018/19.
Implementation was suspended in October 2018 following the dispute with Labour – additional responsibilities.
In order to reduce fraud, theft and corruption associated with passwords SASSA will implement Biometric Identity Access Management System for SOCPEN users.
Pilot will be in 11 Offices in 4 Regions (GP, KZN, EC & MP) in line with the approved biometric project plan. 30

31. Improved Organizational Efficiency
Objectives
Status as at 31 March 2019
Planned 2019/20 Targets
Effective ICT Operations
Network connectivity was upgraded in offices across the regions.
This is additional to 36 offices that were upgraded in 2016/17 and 2017/18.
SASSA Network connectivity infrastructure upgraded in remaining offices across the regions.
Information Management
The SASSA Data Governance Framework was developed.
The Framework will, among others ensure personal information of grant beneficiaries, SASSA employees and service providers is safeguarded and used appropriately.
Implementation of the of governance SASSA Data Governance Framework focusing on the establishment structures, policies and procedures.
Business data integration
Data integration was implemented through collaboration with external parties who also provided infrastructure. These parties include DoJ, DoE, DSD, HA, and NSFAS.
SASSA will initiated interfaces with institutions to share the payment information.
Prioritised areas include SAPO, and Bankserv.

32. Improved Organizational Efficiency
Objectives
Status as at 31 March 2019
Planned 2019/20 Targets
Automation of business systems
SASSA has procured an Enterprise Business Intelligence (BI) Solution to enable data collection from internal and external source systems, prepare it for analysis and create reports and dashboards.
Business Intelligence solution will be implemented across the Agency. This includes
Grants payment reports will be automated
Generating automated reports for key programmes
An electronic queue management system solution architecture and designs were developed.
Develop an electronic queue management system and pilot in one Local Office
The scanning solution was developed and infrastructure rolled out to all nine regions.
Implement the scanning solution in 45 Local Offices (NW, GP, FS, WC & MP)
Currently, the regulated grant process is that of a face to face approach.
Develop requirements analysis for the grants E-forms.

33. Improved Organizational Efficiency
Objectives
Status as at 31 March
Planned 2019/20 Targets
Improved Financial Management
99.93% (4 293 of 4 296) of eligible suppliers were paid within 30 days.
Eligible suppliers paid within 30 days.
22.51% (R172 million of R764m) of social assistance debts was recovered and/or submitted for a write off.
A total amount of R12 million was recovered and R160 million was submitted for write off.
SASSA’s current debt portfolio on Social Assistance is approximately R800m.
The target is to recover and/or written off –5% of the social assistance debt book.

34. Improved Organizational Efficiency
Objectives
Status as at 31 March 2019
Planned 2019/20 Targets
Improved Financial Management
54% (93 of 172) of current cases were finalized.
12% (111 of 894) of backlog cases were finalized.
Finalise Financial misconduct cases:
60% of current cases finalised within 120 days (finalization period covers implementation of consequence management);
95% of backlog cases finalised.

35. Improved Organizational Efficiency
Objectives
Status as at 31 March 2019
Planned 2019/20 Targets
Sound and prompt communication
As part of the payment transition, SASSA communicated to beneficiaries the need to migrate from CPS to SAPO or banks of their choice; and benefits of receiving social grants through electronic channels using both print and electronic media.
As a result, all cash beneficiaries were migrated to electronic means by 30 September 2018.
Implementation of the Integrated communication and Marketing Strategy focusing on internal and external communication.

36. Benefits Administration and Support
Programme 2:
Benefits Administration and Support

37. Implementation of the Social Assistance Programme
Objectives
Status as at 31 March 2019
Planned 2019/20 Targets
Improved grant application process
There were new application in 2018/19.
Processing of new social grant applications.
Plan to reach 1.6 million new applicants.
98.88% of new applications were processed within 10 days, whilst more than 80% were completed within one working day.
Turnaround time for processing grant applications:
95% of social grant applications processed within 10 days.

38. Implementation of the Social Assistance Programme
Objectives
Status as at 31 March 2019
Planned 2019/20 Targets
Provide social assistance to eligible beneficiaries
There were grants in payment including grants in aid at the end of March
Increase the number of grants in payment from million to an estimated by end of March at an estimated cost of R175 billion.
Beneficiaries:
Older persons;
Children; and
Persons with disabilities.
SASSA was able to process applications for children aged 0-1.
Increase the number of children aged 0 to 1 years in receipt of Children’s grants.
applications for children aged 0-1 processed.

39. Implementation of the Social Assistance Programme
Objective
Status as at 31 March
Planned 2019/20 Targets
Provide social relief of distress to eligible individuals and households.
SRD applications were processed.
Target to award SRD applications to individuals and households under distress at a cost of R410 million.
26.8% (R110 million of R410 million) of total SRD rand value was awarded through cooperatives.
30% (R123 million) of total SRD rand value (R410 million) awarded through cooperatives and SMMEs.

40. Implementation of the Social Assistance Programme
Objectives
Status as at 31 March
Planned 2019/20 Targets
Reduction in inclusion and exclusion errors
FCG reviews were processed.
Process foster care grants reviews in collaboration with DSD.
100% of received orders processed within 10 working days.
Conduct administrative and medical reviews in line with the review policy.
Target - 10% (about ) of all reviews due.
Improve Grants Fraud and Risk Management capabilities
A total of beneficiaries were biometrically enrolled by SASSA, just before the suspension of the function in October 2018.
Implement the approved project plan for beneficiary biometric enrolment.
Pilot in 4 Regions (GP, KZN, EC & MP).

41. Implementation of the Social Assistance Programme
Objectives
Status as at 31 March
Planned 2019/20 Targets
To raise awareness of beneficiaries on their rights and obligations relating to social assistance
During the 2018/19 financial year, SASSA was able to roll out ICROP to 317 poor wards.
400 identified wards having access to social assistance through the Integrated Community Registration Outreach Programme (ICROP).
Conduct ICROP impact study.

42. Payment Administration
Objectives
Status as at 31 March 2019
Planned 2019/20 Targets
Management and administration of payment services
CPS services were phased out on 30 September 2018.
SAPO services were phased in by 30 September 2018.
Master Service Agreement (MSA) and Service Level Agreement (SLA) were signed in September and November 2018 respectively.
Management of service provider (SAPO) for social grant payments for all channels including cash in line with the signed agreements (Master Service Agreement (MSA) and Service Level Agreement (SLA).
Monitor all active cash pay points.
In line with the MSA and the SLA, cash payments and pay points are SAPO responsibility.
SASSA monitors compliance with the agreements.

43. SASSA 2019/20 Financial Plan

44. A synopsis of what SASSA seeks to achieve with the allocated budget
Social assistance provide safety net for vulnerable people against poverty and promotes social and financial inclusion of the economically inactive population.
Over the medium term, SASSA intends to continue focusing on improving its services to ensure they reach all those entitled to social assistance benefits. This will be done by:
enhancing systems that are in place to better manage the payment of social assistance;
Reducing the administrative bottlenecks in the grant application process to payment thus improve the turnaround time for grant approval and payment; and
increase access to social assistance by educating beneficiaries on qualifying criteria for social grants, and targeting groups with traditionally low coverage for enrolment as beneficiaries, such as newborn babies and children up to the age of 1.

45. A synopsis of what SASSA seeks to achieve with the allocated budget (cont…)
Until the agency’s contract with Cash Paymaster Services came to an end in September 2018, SASSA spent an average of R2.1 billion per year for contracting the full payment function to the service provider.
In efforts to make the disbursement of grants to beneficiaries more efficient, SASSA has entered into a collaboration agreement/arrangement with the South African Post Office. This resulted in a saving of 20% on the cost of payment of grants compared to 2017/18.
A number of projects have been prioritised within the Benefits Administration Support programme to modernize service delivery models for social assistance over the MTEF period. These projects include:
the automation of social grant registries, which involves scanning millions of beneficiary files into an electronic system; and
the implementation of a biometric authentication system aimed at reducing fraud and improving compliance with applicable legislation.

46. Principles underpinning budget apportionment within the agency
The following principles underpins the agency’s budget apportionment process:
Ensuring alignment of allocations to the service delivery plans, Annual Performance Plan (APP).
Contractual obligations, which are vital for the operations of the agency and must be honoured, are the first charge to the budget.
The allocation process aims to achieve allocative efficiency.
The process also aims to achieve value for money and economical use of resources
The process takes into account the reality of the “Economic Problem” (Scarce resources) and therefore strives for prioritisation and reprioritisation.

47. The approved MTEF Budget Allocation

48. A synopsis of what SASSA seeks to achieve with the allocated budget (cont…)
SASSA derives the bulk of its revenue from transfers by the Department of Social Development. These are expected to increase at an average annual rate of 3.6 per cent, from R7.8 billion in 2018/19 to R8.6 billion in 2021/22.
Allocation letter from the National Treasury indicates that up to R500 million per year will be temporarily withheld over the MTEF; subject to
SASSA taking a decision to subsidize at least one ATM withdrawal per beneficiary; or
in the event of significant unanticipated increase in the number of beneficiaries receiving grants through specific payment channels as agreed with the National Treasury.
In addition to the R7,621,772 allocation for 2019/20, SASSA will use the retained cash surplus of R196 million as approved by the National Treasury.
This brings the total estimated available budget to R7.8 billion for 2019/20 fiscal year

49. Composition of the 2019/20 Budget Estimates
Essentially, contractual obligations within goods and services plus CoE accounts for about 89% of the expenditure estimates. Thereby leaving 10% to fund other essential operations.

50. Challenges and Risks High Irregular Expenditure Audit Qualification
Delays in the implementation of the Biometric project – required to reduce fraud on grants
Continued fraud targeting new SASSA/SAPO card
High vacancy rate
Ongoing litigation with CPS, moneyline and other Parties

51. Conclusion
In summary, the following key projects/processes will be prioritized
Review of the APP and Strategic Plan to align to new priorities based on Cabinet Lekgotla outcomes, SONA and Minister’s strategic direction
Organisational Review
Business process review
Re-alignment of the Organisational structure
Fraud and Risk Management
Build internal and external capacity
Cyber security
Roll out biometrics project to reduce fraud
Ongoing engagements with SAPO to limit the leakages in the IGPS
Implement consequence management – where staff is involved
Management of SASSA/SAPO agreement with an appropriate governance structure
Customer care – improved service offerings to customers

52. RECOMMENDATIONS
It is recommended that the Portfolio Committee notes and approves SASSA’s Annual Performance Plan and Budget for the 2019/20 financial year.

53. Thank you