1. SOUTH AFRICAN SOCIAL SECURITY AGENCY HALF YEAR PROGRESS REPORT PRESENTATION TO THE PORTFOLIO COMMITTEE 8 November 2006

2. PURPOSE OF PRESENTATION The presentation focus on the following: Progress on social security agency priorities over the MTEF period: –Establishment and operationalisation of the agency –Measures to improve service delivery Budget and spending trends Conclusion

3. SASSA PRIORITIES Improving service delivery quality –Improve turn around time for grants processing –Development of a service delivery model –Implementation of priority norms and standards –Development of effective forecasting model –Implement customer charter

4. SASSA PRIORITIES Organizational capacity –Recruitment of staffs for the Agency –Implement HR systems and policies. –Establish change management infrastructure –implement human capital management development and training plans.

5. SASSA PRIORITIES Improvement of payment services –Improve conditions at access points –Develop and implement an optimal infrastructure plan Enhancing grant process integrity –Improve data quality –Standardize business processes

6. SASSA PRIORITIES Improving financial management Minimizing fraud

7. HALF YEAR PROGRESS REPORT

8. Customer Management Programme Customer Centric Services Refined customer charter, aligned to service delivery objectives and priorities Developed Interim Grant Application Process to standardize grant application process Piloted in several regions strategies to improve turnaround time to 1—3 days. Drafted processes for unclaimed benefits and cross boundary transfers

9. Customer Management Programme (cont.) Developed and implementing strategy for establishment of electronic registries Established National Needy Learner Database – to identify poor learners within schools, promote access to child grants Completed customer relationship management strategy.

10. Customer Management Programme(Cont.) Infrastructure Completed designs and layouts for service offices and pay points. Improved helpdesk services at pay points Procured mobile offices (vehicles) to increase access in rural and nodal areas. To be piloted in 2 regions. Full roll out for 2007/08 Monitoring report of service providers, aimed at improving compliance and improving conditions

11. Strategy and Business Development Programme Business Integration 8 of 9 regional offices, plus some district and local offices, moved to offices separate from DSD Grant administration function has been capacitated with transfer of more than 6 000 staff from provincial offices Support function policies, procedures and delegations are being rolled out to regions Grant administration policies, procedures and delegations implemented with clear reporting and accountability

12. Strategy and Business Development Programme Business Partnerships Costing of policies, grant and beneficiary projections, through macroeconomic and micro-simulation modeling techniques Verification of grant projections completed Met with various institutions to assess where they can support and assist the Agency in promoting service delivery

13. Strategy and Business Development programme Trends in Beneficiaries Average annual Growth ingrowth rate over Grant TypesSeptember-05September-06Beneficiariesperiod Old Age2,106,4822,165,93559,4532.8 War Veterans3,0762,566-510-16.6 Permanent Disability1,062,8571,125,44762,5905.9 Temporary Disability197,892247,08049,18824.9 Foster Care (children)284,036363,68479,64828.0 Care Dependency (children)86,73793,8797,1428.2 Child Support (children, total)6,219,9947,496,9041,276,91020.5 CSG (children, 0-6 years)3,582,9713,943,707360,73610.1 CSG (children, 7-8 years)1,126,4561,177,23850,7824.5 CSG (children, 9-10 years)952,3951,138,114185,71919.5 CSG (children, 11-13 years)558,1721,237,845679,673121.8 TOTAL9,961,07411,495,4951,534,42115.4

14. Strategy and Business Development Programme

15. Corporate Services Programme Human Capital Management Recruitment policy and delegations finalized 60 % of identified critical posts have been filled Approved organizational structure is currently under review to ensure alignment with service delivery model Most contract workers transferred from DSD now absorbed into Agency as permanent staff members Collective bargaining forum is being established Essential Services Committee has designated SASSA as an essential service

16. Corporate Services programme Human Capital Management, cont’d Labour relations forum established Training and Development interventions have commenced Functional training295 Employees studying Social Security645 Skills audit underway HCM policies, training interventions focusing on core functions are in development stage Performance contracts for 80 % of SMS, 54 % of levels 1--12

17. Corporate Services Programme Legal Services Developed draft litigation strategy Consultation with relevant stakeholders currently underway Ad hoc assistance and structural assistance provided to regional offices

18. Information and Communication Technology Programme Critical business systems (BAS, PERSAL, LOGIS, SOCPEN) have been operationalised ICT support services provided through a SITA business agreement, while finalizing tenders for open market SOCPEN system managed, loopholes being closed as per previous audit SASSA website operational SASSA intranet developed Home Base electronic document management system acquired ICT governance structures and standard policies developed

19. Communications, Marketing and Change Management Programme Three-year Communication Strategy and Plan developed Internal Communication plan developed including a regional alignment process Finalized and introduced interim Brand. Corporate identity standardization process concluded National switchboard established Call centre establishment project to be transferred from DSD Complaints handling guidelines in place

20. Finance and Supply Chain Management Programme Budgets from provincial DSD transferred to Agency Detailed budgeting template created and rolled out Bid Committee formed and is fully functional Supply Chain Management policies and processes authorized and implemented

21. Audit and Risk Management Programme Chief internal auditor and professional staff appointed Audit policy developed Risk management policy developed Monitoring and Evaluation process established Partnerships built with other data sources, other institutions Special Investigating Unit (SIU) appointed for 3 years to assist with investigations 15 982 government employees receiving grants suspended Fraud hotline with 24 hour number, received over 43 000 cases referred for investigation

22. Budget and spending trends _____________________ Budget Allocations 2006/07 As at 30 September 2006 __________________________________________________ Budgeted (R ’000) Actual (R ‘000) SASSA TOTAL 3,815,406 1,660,721 HEAD OFFICE 358, 355 74,042 REGIONS 3,457,051 1,586,679

23. Budget and spending trends Budget Allocations2006 / 07As at 30 September 2006 Budgeted (R '000)Actual (R '000) Head Office358,35574,042 Corporate Service79,54810,401 Strategy and Business Development33,1235,267 Customer Care13,7671,341 Information and Communications Technology169,04432,043 Treasury / Finance30,6454,967 Communications and Marketing17,0602,366 Office of the CEO15,16817,637

24. Budget and spending trends Budget Allocations2006 / 07As at 30 September 2006 Budgeted (R '000)Actual (R '000) Regions 3,457,0511,586,679 Eastern Cape655,001260,412 Free State225,618106,324 Gauteng367,213136,878 KwaZulu-Natal807,009582,597 Limpopo498,948166,531 Mpumalanga257,37493,078 North West312,725113,836 Northern Cape94,18541,203 Western Cape238,97885,820

25. Conclusion The SASSA establishment process is proceeding well in line with the expectations of as presented in the strategic plan SASSA has taken over full responsibility and accountability of the administration and payment of social grants across all nine provinces. The following issues pose challenges and risks for the agency: –Ceding of contracts and associated budgets from the provincial and the National Departments of Social development to the Agency. –Current state of litigation, magnitude of liability in respect of cost orders grants against SASSA.