1. KEY STRATEGIC PROGRAMMES Presentation to Portfolio Committee 24 APRIL 2013

2. 2 Purpose The purpose of the presentation is to: –Provide the Portfolio Committee with a broad overview of the strategic plan 2013/14 – 2016/17 ; –Highlight priority areas for the Agency for 2013/14; and –Give an overview of the budget allocation.

3. Vision and Mission Vision A leader in the delivery of social security services. Mission To administer quality customer centric social security services to eligible and potential beneficiaries. Values Transparency Equity Integrity Confidentiality Customer Care Centered approach

4. Payment Tender Payment Model Automation Service Delivery Improvements –Improvement of Local offices –Capacity building @ level 5 and 7 –EPWPs –Standardisation – 4 step process –Staff uniform –Customer care officials at receptions – client interface Unqualified Audit Payment Tender Payment Model Automation Service Delivery Improvements –Improvement of Local offices –Capacity building @ level 5 and 7 –EPWPs –Standardisation – 4 step process –Staff uniform –Customer care officials at receptions – client interface Unqualified Audit Re-registration Migration to new payment system Payment Model Local offices improvement Fraud management Staff Uniform EPWPs Biometrics for staff Unqualified Audit BPR Capacity building: –Executive posts filled (95% achievement) Re-registration Migration to new payment system Payment Model Local offices improvement Fraud management Staff Uniform EPWPs Biometrics for staff Unqualified Audit BPR Capacity building: –Executive posts filled (95% achievement) Re-registration Back office clean- up Reviews Backlog eradication Payment Model Linking of grant recipients to opportunities - School uniform project Local offices improvement Fraud management Staff Uniform Biometrics for staff Recruitment Of People With Disabilities and unemployed CSG recipients with basic qualifications Clean Audit Grant Debtor Management File Destruction Strategic Partnerships Organisational Review EPWP Major Community outreach programmes (9 X 15) Re-registration Back office clean- up Reviews Backlog eradication Payment Model Linking of grant recipients to opportunities - School uniform project Local offices improvement Fraud management Staff Uniform Biometrics for staff Recruitment Of People With Disabilities and unemployed CSG recipients with basic qualifications Clean Audit Grant Debtor Management File Destruction Strategic Partnerships Organisational Review EPWP Major Community outreach programmes (9 X 15) May 2011 – March 2012 April 2013-March 2014 April 2012-March 2013

5. Background The Agency entered its seventh year of operation. In spite of intermittent periods of turbulence, it has made huge strides in ensuring that it fulfils its mandate, namely, to manage, administer, and pay social security transfers. The Agency's footprint straddles the length and breadth of South Africa, bringing much-needed social assistance relief to the most vulnerable in our society.

6. Key priorities for 2012/13 - 2016/17 To deliver quality social security services by focusing on the following: –Excellent customer care; –The automation of systems; –Improving organisational capacity; and –Promoting good governance.

7. Key Focus areas SASSA will embark on a reform agenda aimed at –improving service delivery - make people’s dealings with government easier through better delivery and coordination of services –Improving organisational efficiency -modernising the Agency’s business processes –Developing a new payment system –Diversification: Positioning SASSA as payment provider for social security benefits

8. Key Priority Projects for 2013

9. Implementation of the Social Assistance Programme ObjectiveImprove the reach to qualifying/eligible social assistance beneficiaries Current Status Over 16 069 007 people are in benefiting from social grants. The take –up rates for new grants is on average 1 200 000 per annum There is an attrition rate of at least 500 000 beneficiaries per annum due to death, reviews and voluntary cancellations. Planned Activities Target is to reach at least 1.2m new beneficiaries Increase the number of grants in payment from 16 069 007 to 16 513 702 CSG - 11 698 536 CDG - 135 347 DG - 1 179 852 FCG - 569 314 GIA - 71 879 OAG - 2 930 177 WV - 477

10. Implementation of the Social Assistance Programme ObjectiveImprove the management of Social Relief of Distress by ensuring qualifying beneficiaries are not disadvantaged. Planned Activities Training and workshops will be held to ensure there is common understanding and interpretation of undue hardship. 25 000 SRD applications will be processed per annum over the next three years Priority will be given largely to: children suffering with mal-nutrition; assisting families where the breadwinner died; assisting in disaster situations; and individuals awaiting grants.

11. Re - Registration ObjectiveEstablishing a credible National payment database through re- registration programme. Current Status Over 19 million people have been re-registered. Planned Activities Completion of the Re-registration Re-register outstanding 2 million by April 2013 April – May 2013: conduct a sweep (“mopping”) across the country to ensure no one is left out and conduct any home visits that may be outstanding. PAJA processes will commence in May 2013 Cleaning of data Re-registration Data Clean-up will involve data matching with critical institutions and elimination of duplications Fraud patterns assessed and investigated Records Management Filling of loose correspondence relating to documents collected during the re-registration process

12. GRANT Reviews ObjectiveEliminate backlog of grant reviews (largely Medical and Financial) Current StatusBacklog of 2.5 million grants due for review eliminated in 1 year six months Planned Activities Eliminate backlogs Notification to each beneficiary, registered mail, to comply with legislative requirements. Plan is to have dedicated review venues (similar to re-registration venues) to manage overcrowding in local offices. Home visits will be conducted targeting older persons above the age of 75; care dependency and grant in aid beneficiaries. There will be carry over into the 2014/15 financial year, because of the cycle time for reviews (3 month notice of review, 3 months notice to suspend and 3 months for application for restoration) Current Reviews While backlog reviews are being attended to, current reviews must be dealt with, to prevent further development of backlog

13. Local Office & Service Points Improvements ObjectiveImprove the conditions under which we serve the beneficiaries and to ensure that all customers experiences the same business processes. Current Status The project started in July 2011, following CEOs appointment. 92 Offices were upgraded in 2011/12. Additional 72 will be completed by end of March 2013 All Service offices have adopted a 4-step application process. Planned Activities Physical infrastructure improvement Upgrade of Local offices will be completed in 2015. The target for 2013 is to have 119 facilities upgraded to suit the new standardised application process Full capacitation of service offices (HR, ICT and vehicles) Improve accessibility of our services and offices

14. Example of the Set-up in the New SASSA office 14 Thabanchu Local OfficeBloemfontein Local Office

15. Organisational Review ObjectiveThe goals of this review project is to make SASSA more effective through increased operational efficiency and the creation of a more streamlined and effective organisational structure. Current StatusSASSA’s organisational structure is temporary. Functions are duplicated between HO, Regional Offices and District Offices Each branch conducted a preliminary diagnosis and micro-audit of their functional areas and have made proposals on the possible areas for possible change. Planned Activities Quick win changes are being implemented Independent consultant will be appointed to work with the AGENCY focusing on the review the proposals and ensure that proposals are aligned to the vision of the Agency and ensures optimum utilisation of staff Labour will be consulted throughout the process.

16. Future Payment System ObjectiveThe objective is for SASSA to implement its full mandate of administering, managing and paying social grants. Current Status Establishment of National Payment Database is being finalised. Current SASSA card has transformed the industry by ensuring more people who were previously unbanked are integrated in mainstream economy. Planned Activities Exploring Alternative options in case the Court outcome is against SASSA Advisory Committee is being established to support SASSA investigate future payment options for SASSA SASSA will host an International round table workshop on Payment in the 3 rd quarter.

17. Organizational efficiency HCM Optimum utilisation of staff Update of Personal files –conduct file audits; and –Implementation of i- module programme Absentee Management process – Pillar Governance Strive towards Clean Audit by 2015; Ensure that all Governance structures are functional; and Develop organization- wide Risk Register.

18. Organizational efficiency Automation Biometrics for access to SASSA core business systems Investigate the single platform Strengthen SASSA internal capacity to drive ICT operations that are required for day to day operations of the Agency Financial Management Improve turn around for payment providers; Grant Debtors Management ; and Eliminate austerity measures in so far as it impacts on service delivery.

19. Other initiatives to be addressed by SASSA Tackling intergenerational poverty – linking social assistance recipients of working age to development al and/or economic opportunities Intensify outreach programme to communities with the objective to reach those beneficiaries who are unable to reach our office and ensure that potential and current beneficiaries are fully informed of the programmes and initiative. Exploring measures to build ASSA’s Future Workforce by: –establishing partnerships with institutions of High Learning to develop degrees/diplomas that incorporate social security in their curriculum (NFSAS) –Giving bursaries to get people into work through training and education in the field of social security. Conduct research to ensure that the Missing children are located (take up rates for children between 0-1 is at 36% and 45% for children between 16 and 17).

20. Other Activities for 2013 Strengthening partnership for SASSA: International structures –ISSA –SA-EU dialogue facility National integration and partnerships –Dept of Education: - analysis and matching of children in Education system vs CSG and FCG –ECD – Province: - analysis and matching of children in registered ECD centres vs CSG and FCG –Health – co-location for early registration of children, SRD - mulnutrition & Disability

21. 21 SASSA Financial Plan 2013/14 - 2015/16

22. SASSA Administration Budget Allocation over the MTEF SASSA Allocation 2013/142014/152015/16 R’000 SASSA Initial Allocation 6 442 9646 650 3857 067 054 Approved Budget 6 311 0486 577 5896 840 486

23. SASSA Administration Budget Allocation over the MTEF SASSA Allocation 2013/142014/152015/16 R’000 Compensation of employees 2 365 4482 501 7922 641 892 Goods and services 3 803 1753 859 4493 880 438 Transfers and subsidies 23 65425 01826 419 Other 250 687 264 126 279 225 SASSA Allocation6 442 9646 650 3857 067 054 Approved Budget6 311 0486 577 5896 840 486

24. 2013 MTEF Appropriation The budget appropriation grows by 3%, 4% and 4% respectively over the MTEF period The National Treasury has reduced the 2013/14 baseline by an amount of R215,324 million, from R6,5311,88 billion to R6,315,864 billion This reduced appropriation will have a negative impact on our budget and will necessitate trade-offs and reprioritisation

25. 2013 MTEF Appropriation 25 Revised appropriation incorporating adjustments The table shows the baseline allocation and reductions over the MTEF period

26. Summary of allocations per key cost drivers 26

27. Summary of allocations per key cost drivers 27

28. Budgeted key priorities/cost drivers Compensation of Employees (37% of the total allocation) –The budget allocation for CoE caters for current posts, and critical additional posts (In particular level 5-8 posts at the regions to ensure the recruitment of sufficient and appropriately skilled human capital for improved and more efficient service delivery. Cash Payment Contractors’ fees (31%) –Awarding of the new 5 year contract to service provider Cash Paymaster Services, which caps the cost per grant at R16.50 assisted in realising savings on this expenditure item. Various contracts necessary for the running of the Agency -The budget allocation in this regard caters for the leasing of office accommodation including all the other related costs such as security services, cleaning service charges and maintenance and repairs. The allocation also includes the leasing of motor vehicles from the government garage, which forms part of the Agency’s fleet strategy. Furthermore, there are Information Technology related contracts such as contracts for the VPN connectivity, SITA contracts (for the SOCPEN) etc.

29. Budgeted key priorities/cost drivers Other key cost drivers include –Grant Review - Backlogs (R200m) –Improvement of local offices and pay point infrastructure including ICT infrastructure deployment in newly acquired offices –Grant Fraud Investigations –Bulk Notification –Communication and Media Campaigns

30. Key Strategic Challenges 30

31. Key challenges Policy Implementation: –Foster Care challenges –Role of SASSA in Disaster Management –SRD – interpretations of undue hardships –Targeting – 2 million children qualifying for CSG are reported to be missing Ongoing Payment Tender Court Case - time consuming Infrastructure: –Conditions of some of our offices and pay-points, especially in rural areas are still unacceptable Processes and operational efficiencies: –Partial standardisation of business processes –Resources: inequitable distribution of resources particularly at points of service delivery –Social grant fraud –Labour relation cases still high

32. Recommendations It is recommended that Portfolio Committee note and support SASSA’s key strategic programme and budget for 2013/14 – 2016/17