1. Presentation to the Portfolio Committee on Social Development 30 March 2011

2. 2 Outline of the presentation  Purpose;  Strategic overview: Mandate; Vision; Mission; Strategic objective; and Values.  Reform Agenda;  2010/11-2013/14 MTEF Plan;  Recommendation

3. 3 Purpose  To speak briefly to the Agency’s Performance Environment with special reference to its challenges;  To indicate projects that will be embarked upon to improve Service Delivery; and  To provide the Portfolio Committee on Social Development,a broad overview of the strategic plan 2010/11-2013/14.

4. Background Over the first five years of its establishment the Agency had to strike a balance between putting an effort in establishing itself while ensuring the provision of quality service; The Agency has maintained consistent provision of monthly income support to a significant number of South Africans while instituting measures to reduce the turnaround times for the processing of applications; The Agency increased its reach to over 10 million beneficiaries, while the turn around time was reduced from six months to nine days (and 1 day in some areas); and Agency also increase reach to rural communities through mobile units. 4

5. 5 Strategic Overview Mandate  The mandate of the SASSA is to ensure the provision of comprehensive social security services against vulnerability and poverty within the constitutional and legislative framework. Vision  A comprehensive social security service that assists people to be self-sufficient and supporting those in need. Mission  To manage quality social security services, effectively and efficiently to eligible and potential beneficiaries effectively and efficiently.

6. 6 Strategic Objective  To build a high performance institution which manifests itself by compliance to good governance principles and striving towards operational excellence through continued service delivery improvements to the beneficiaries.

7. 7 Values  Social cohesion  Transparency  Equity  Integrity  Confidentiality  Customer Care- centered Approach

8. Situational Analysis SIGNIFICANT GROWTH AND IMPACT ON SERVICE DELIVERY Over 8 million South Africans receive over 15 million social grants benefits depicted as follows: 10 million are child benefits; 2.5m are older persons; and 1.3m are people with disabilities. The number of grant benefits increased from 13m in 2008/09 to over 15m in 2010/1; and The average number of transactions that the Agency deals with per annum is 4,680,675 excluding payments. 8

9. Situational Analysis cont.… AGSA’s FINDINGS Significant growth in number had a negative impact on administration resulting in a qualified audit opinion. The following were the reasons for the qualification: There were more than 545 508 missing files; There were 159 302 items of loose correspondence which still has to be placed on the files and captured on the Management Information System; There were 209 302 files which are missing the critical documents; There were 62 153 files which need to be transferred between regions; and There were more than 2 million files that should be destroyed. The nature of the Agency’s business renders it vulnerable to fraud and corruption. 9

10. Situational Analysis cont.… SHARING OF OFFICES WITH DSD Some regions are still sharing offices with DSD and this has implications for: Suitable office space - staff is generally speaking, crammed in offices with negative impact on job satisfaction and quality of service delivery; Equal sharing of running costs even though the Agency’s use of services is lesser than that of DSD; and Investment in ICT infrastructure is affected by the uncertainty over tenure agreements. 10

11. Situational Analysis cont.… PAY POINT CONDITIONS A large number of the pay points where the beneficiaries receive their cash payments do not meet the norms and standards with regard to providing humane basic facilities; In some cases beneficiaries are exposed to security and health risks; Most rural pay points require urgent infrastructural attention; and Exploitation of beneficiaries by merchants and money lenders. 11

12. Situational Analysis cont.… THE STRATEGIC PLAN 2011/12 - 2013/14 SEEKS TO ADDRESS THE FOLLOWING KEY CHALLENGES : Improvement in the grant administration and management system; Automation of the grant application process; Reduction of fraud and corruption; and Improvement in financial management. 12

13. Strategic Projects Given these key challenges the Agency has identified the following as key projects to improve service delivery: Automation and modernisation of Grant Management and Administration; New Payment Model; Implementation of Integrity Model (Fraud Prevention); Implementation of Service Delivery Model ; and Business Process Re-engineering. 13

14. 14 Agency’s Reform Agenda The Reform Agenda is underpinned by the following three key priorities: Customer care - Centred Benefits Administration and Management System; Improved Organisational Capacity; and Increased access to Social Security Services.

15. Priority 1: Customer care - Centred Benefits Administration and Management System Some of the key projects identified under this priority area are: Continued implementation of policies on social assistance; Implementation of the Service delivery Model; A Payment System; Automated Core Business System; and Improvement of pay point conditions. 15

16. Service Delivery Model In response to service delivery challenges the Agency has developed a Service Delivery Model designed to achieve the following: enable the Agency to deliver improved, standardised and coordinated services, by multi-skilled staff, to its customers; provide a baseline of operational standards on which the Agency could improve continuously, while adapting to an ever-changing environment; provide an opportunity, as well as solutions, to achieve the strategic objectives aimed at exceeding stakeholder expectations; ensure a more customer-focused organisation; and bridge the gap between the current reality and the envisaged end- state. 16

17. Priority 2: Improved Organisational Capacity Some of the key projects identified under this priority area are: Optimisation of the Agency’s business processes; Implementing the integrity model; Finalising a BPR intervention; and Ensuring the integrity of the Agency’s Systems. 17

18. Priority 3: Increased Access to Social Security Services In line with government’s key priority of rural development,the Agency has to ensure that its services are also easily accessible to its rural population. The key project under this priority is Integrated Community Registration Outreach Programme (ICROP). 18

19. Risk Identification The following risks were taken into consideration in the Strategic Planning exercise: Increased pressure on financial resources because of increased demand for social assistance; Ineffective monitoring and evaluation; Inappropriate organisational culture; Poor strategic planning; Inappropriate organisational design; Lack of appropriate systems; and Fraud and corruption. 19

20. 20 The Agency’s strategic intent Government Strategic Priority The Agency’s PrioritiesThe Agency’s Strategic Imperatives Outputs Building cohesive, caring and sustainable communities Customer-care-centred Benefits Administration and Management System Integrated Social Assistance Business System Policy and legislation on Social Assistance implemented Improvement of grant application process Effective and efficient management of beneficiaries Effective and efficient management of Grant Payments Improved management of Disability Grant Services Automated Core business system implemented

21. The Agency’s strategic intent cont… 21 Government Strategic Priority The Agency’s Priorities The Agency’s Strategic Imperatives Outputs Ensuring effective and efficient public administration Building cohesive, caring and sustainable communities Improved Systems Integrity Transform the Agency’s culture and enhanced people capabilities Integrity Model implemented Legal services model implemented Effective and efficient management and development of human capital Knowledge Management Strategy implemented Grant Payment System developed and implemented The Agency’s business processes optimised Effective and efficient management of facilities and auxiliary support services

22. 22 The Agency’s strategic intent cont… Government Strategic Priority The Agency’s Priorities The Agency’s Strategic Imperatives Outputs Ensuring effective and efficient public administration Building cohesive, caring and sustainable communities Improved Systems Integrity Transform the Agency’s culture and enhanced people capabilities Sound Financial Management across the Agency Integrated Risk Management Framework implemented Buildings Infrastructure Strategy implemented Transport Management Strategy implemented Records Management (Paper- based) System implemented Integrated Communication and Marketing Strategy implemented Integrated Monitoring and Evaluation Framework implemented

23. 23 The Agency’s strategic intent cont… Government Strategic Priority The Agency’s Priorities The Agency’s Strategic Imperatives Outputs Ensuring effective and efficient public administration Building cohesive, caring and sustainable communities Improved Systems Integrity Transform the Agency’s culture and enhanced people capabilities Service Delivery Model implemented Framework on Strategic Planning, Operational Planning and Reporting implemented Integrated Research and Development Strategy implemented Micro Simulations and Macro economic Model implemented Strategic Partnerships Strategy implemented ICT Business Application Systems availability maintained and accessible ERP implemented

24. 24 The Agency’s strategic intent cont… Government Strategic Priority The Agency’s Priorities The Agency’s Strategic Imperatives Outputs Building cohesive, caring and sustainable communities Increased access to Social Security Services Increased access to Social Security Services in the rural and semi- rural areas Customer Relations Management Strategy implemented ICROP Strategy implemented Stakeholder Management strategy implemented

25. 25 2011/12 – 2013/14 MTEF PLAN BRANCH: GRANTS ADMINISTRATION OutputPerformance Indicator Target 2011/12 Target 2012/13 Target 2013/14 Policy and Legislation on Social Assistance implemented Projected total number of grants in payment including normal growth and the impact of policy changes 15 774 162 projected total number of grants in payment 16 721 657projected total number of grants in Payment 16 777 649 projected total number of grants in payment 2 729 359 projected total number of Older Person’s Grants in payment 2 786 026 projected total number of Older Persons’ Grants in payment 2 844 243 projected total number of Older Persons’ Grants in payment 1 265 271 projected total Number of Disability Grants in payment 1 289 518 projected total number of Disability Grants in payment 1 314 517 projected total number Disability Grants in payment 128 133 projected total number of Care Dependency Grants in payment 134 604 projected total number of Care Dependency Grants in payment 141 358 total number of Care Dependency Grants in payment 813 Projected total number of War Veterans Grants in Payment 703 Projected total number of War Veterans Grants in payment 608 Projected total number of War Veterans Grants in payment

26. 26 2011/12 – 2013/14 MTEF PLAN cont… BRANCH: GRANTS ADMINISTRATION … OutputPerformance Indicator Target 2011/12 Target 2012/13 Target 2013/14 Policy and Legislation on Social Assistance implemented Projected total number of grants in payment including normal growth and the impact of policy changes 10 976 510 projected total number of Child Support Grants in payment 11 303 073 projected total number of Child Support Grants in payment 11 588 704 projected total number of Child Support Grants in payment 612 651 projected total number of Foster Child Grants in payment 708 592 projected total number of Foster Child Grants in payment 819 853 projected total number of Foster Child Grants in payment 61 425 projected total number of Grant-in-Aid in payment 65 110 projected total number of Grant-in-Aid in payment 68 366 projected total number of Grant-in-Aid in payment Projected number of beneficiaries receiving grants impacted on by policy changes CSG extension: 510 069 of eligible children aged 16-17 years CSG extension: 434 031 of eligible children aged 17-18 years % of Social Relief Distress (SRD) funds disbursed in accordance with approved guidelines 95% of Social Relief Distress (SRD) funds disbursed in accordance with approved guidelines 95% of Social Relief Distress (SRD) funds disbursed in accordance with approved guidelines 95% of Social Relief Distress (SRD) funds disbursed in accordance with approved guidelines

27. 27 2011/12 – 2013/14 MTEF PLAN cont… BRANCH: GRANTS ADMINISTRATION … OutputPerformance Indicator Target 2011/12 Target 2012/13 Target 2013/14 Policy and Legislation on Social Assistance implemented Internal Reconsideration Mechanism developed and implemented. The Internal Reconsideration Mechanism guideline developed 60% of Internal Reconsideration requests adjudicated within 90 days 80% of Internal Reconsideration requests adjudicated within 90 days 100% of Internal Reconsideration requests adjudicated within 90 days Improvement of grant application process % reduction of turnaround time from 90 days to 21 days in all regions 80% of new applications processed within 21 days in all regions 90% of new applications processed within 21 days in all regions 100% of new applications processed within 21 days in all regions Effective and Efficient management of beneficiaries Number of beneficiaries notified of administrative decisions and reviewed 900 000 beneficiaries notified of administrative decisions and reviewed 1m beneficiaries notified of administrative decisions and reviewed 1.2m beneficiaries notified of administrative decisions and reviewed Number of beneficiaries notified of administrative decisions and life certified 700 000 beneficiaries notified of administrative decisions and life certified 2.3m beneficiaries Notified of administrative decisions and life certified 2.4m beneficiaries notified of administrative decisions and life certified

28. 28 2011/12 – 2013/14 MTEF PLAN cont… BRANCH: GRANTS ADMINISTRATION … OutputPerformance Indicator Target 2011/12 Target 2012/13 Target 2013/14 Effective and Efficient management of beneficiaries % of beneficiaries whose grants are to be lapsed are lapsed and notified 100% of beneficiaries whose grants are to be lapsed are lapsed and notified 100% of beneficiaries whose grants are to be lapsed are lapsed and notified 100% of beneficiaries whose grants are to be lapsed are lapsed and notified % of beneficiary records with backlogs in the registry with respect to the following that must be completed: File transfer File destruction Missing files Loose correspondence 25% of beneficiary records with backlogs in registry completed 50% of beneficiary records with backlogs in registry completed 75% of beneficiary records with backlogs in registry completed

29. 29 2011/12 – 2013/14 MTEF PLAN cont… BRANCH: GRANTS ADMINISTRATION … OutputPerformance Indicator Target 2011/12 Target 2012/13 Target 2013/14 Effective and Efficient management of beneficiaries Number of beneficiaries records with exceptions identified and resolved: Incorrect identity numbers Incorrect grant types Incorrect addresses Incorrect banking details Unrecorded deaths Undeclared means 20 000 beneficiaries records with exceptions identified and resolved 40 000 beneficiaries records with exceptions identified and resolved 80 000 beneficiaries records with exceptions identified and resolved

30. 30 2011/12 – 2013/14 MTEF PLAN cont… BRANCH: GRANTS ADMINISTRATION … OutputPerformance Indicator Target 2011/12 Target 2012/13 Target 2013/14 Effective and Efficient management of Grant Payments Amounts of money recovered from dormant accounts R50 m recovered from dormant accounts R100 m recovered from dormant accounts R150 m recovered from dormant accounts Number of pay points improved 300 pay points improved400 pay points improved528 pay points improved Services provided by payment contractors monitored Quarterly compliance reports on payment contractor services Quarterly compliance reports on payment contractor services Quarterly compliance reports on payment contractor services Improved management of Disability Grant services % of new disability grant assessments quality assured 20% of new disability grant assessments quality assured 20% of new disability grant Assessments quality assured 20% of new disability grant assessments quality assured

31. 31 2011/12 – 2013/14 MTEF PLAN cont… BRANCH: GRANTS ADMINISTRATION. OutputPerformance Indicator Target 2011/12 Target 2012/13 Target 2013/14 ICROP Strategy implemented Number of identified rural wards having access to Social Assistance through ICROP 44 identified rural wards having access to Social Assistance through ICROP 40 identified rural wards having access to Social Assistance through ICROP 40 identified rural wards having access to Social Assistance through ICROP Number of beneficiaries in rural wards having access to Social Assistance through ICROP 65 000 of beneficiaries in rural wards having access to Social Assistance through ICROP 50 000 of beneficiaries in rural wards having access to Social Assistance through ICROP 60 000 of beneficiaries in rural wards having access to Social Assistance through ICROP Customer Relations Management Strategy implemented % of enquiries attended to 100% of enquiries attended to 100% of enquiries attended to 100% of enquiries attended to % of complaints attended within five days 100% of complaints attended within five days 100% of complaints attended within five days 100% of complaints attended within five days

32. 32 2011/12 – 2013/14 MTEF PLAN cont… BRANCH: INTERNAL AUDIT AND RISK MANAGEMENT OutputPerformance Indicator Target 2011/12 Target 2012/13 Target 2013/14 Integrity Model Implemented Integrity policy approved and implemented Integrity Policy approved Audit report on compliance with Integrity Policy produced For Head Office and 3 regions Audit report on compliance with Integrity Policy produced for 6 regions Number of social grants verified for validity 40,000 social grants verified for validity 50,000 social grants verified for validity 60,000 social grants verified for validity Number of Corporate compliance inspections conducted 60 Corporate compliance inspections conducted 60 Corporate compliance inspections conducted 60 Corporate compliance inspections conducted Number of regions implementing Ethics programme Ethics programme developed and implemented at Head Office Ethics programme developed and implemented in four regions Ethics programme developed and implemented in five regions % of fraud cases identified and referred to law enforcement agencies 100% identified fraud cases referred to law enforcement agencies 100% identified fraud cases referred for investigation to law enforcement agencies 100% identified fraud cases referred for investigation to law enforcement agencies Number of Internal audit reviews conducted 30 internal audit reviews conducted 30 internal audit reviews conducted 30 internal audit reviews conducted

33. 33 2011/12 – 2013/14 MTEF PLAN cont… BRANCH: INTERNAL AUDIT AND RISK MANAGEMENT… OutputPerformance Indicator Target 2011/12 Target 2012/13 Target 2013/14 Integrity Model Implemented Integrated fraud prevention strategy developed Integrated fraud prevention strategy developed % implementation of Integrated fraud prevention plan 100% implementation of integrated fraud prevention plan 100% implementation of integrated fraud prevention plan Integrated Risk Management Framework Implemented Risk-mitigating action plans developed for all strategic projects Risk-mitigating action plans developed for all strategic projects Risk-mitigating action plans developed for all strategic projects Risk-mitigating action plans developed for all strategic projects Integrated Business Continuity Strategy developed and approved Integrated Business Continuity Strategy developed and approved Integrated Business Continuity Strategy reviewed Integrated Business Continuity Strategy reviewed Integrated Business Continuity Strategy reviewed

34. 34 2011/12 – 2013/14 MTEF PLAN cont… BRANCH: FINANCE OutputPerformance Indicator Target 2011/12 Target 2012/13 Target 2013/14 Sound Financial Management across the Agency % Reduction of the budget deficit of R884m 50% Reduction in the budget deficit of R884m 75% Reduction in the budget deficit of R884m 100% Reduction in the budget deficit of R884m % reduction of overdraft 50% reduction of overdraft 100% reduction of overdraft 100% reduction of overdraft % of all eligible suppliers paid within 30 days 100% of all eligible suppliers paid within 30 days 100% of all eligible suppliers paid within 30 days 100% of all eligible suppliers paid within 30 days % staff debts and social assistance debts recovered as per the terms of AoDs 50% staff debts and social assistance debts recovered as per the terms of AoDs 75% staff debts and social assistance debts recovered as per the terms of AoDs 100% staff debts and social assistance debts recovered as per the terms of AoDs % accounts reconciliation and month end closure of accounts payable, receivable, purchasing, inventory, assets, cash & banking, and payroll 100% accounts reconciliation and month end closure of accounts payable, receivable, purchasing, inventory, assets, cash & banking, and payroll 100% accounts reconciliation and month end closure of accounts payable, receivable, purchasing, inventory, assets, cash & banking, and payroll 100% accounts reconciliation and month end closure of accounts payable, receivable, purchasing, inventory, assets, cash & banking, and payroll

35. 35 2011/12 – 2013/14 MTEF PLAN cont… BRANCH: FINANCE… OutputPerformance Indicator Target 2011/12 Target 2012/13 Target 2013/14 Sound Financial Management across the Agency % reduction in irregular expenditure 90% reduction in irregular expenditure in terms of value and number of 2010/11 95% reduction in irregular expenditure in terms of value and number of 2011/12 99% reduction in irregular expenditure in terms of value and number of 2012/13 % compliance to Inventory management 50% of 51 sub inventories stores to be centralised 70% of 51 sub inventories stores to be centralised 100% centralisation of inventory stores Availability of Project Plan to migrate from First in First Out (FIFO) to weighted average Available Project plan to convert the inventory valuation method from First in First Out (FIFO) to weighted average 100% Implementation of weighted average 100% accurate stock values % compliance with asset management 100% compliance with the asset clearing account 100% compliance with the asset clearing account 100% compliance with the asset clearing account

36. 36 2011/12 – 2013/14 MTEF PLAN cont… BRANCH: ICT OutputPerformance Indicator Target 2011/12 Target 2012/13 Target 2013/14 ICT business application systems availability maintained and accessible % of systems available and accessible 97% systems available and accessible 97% systems available and accessible 97% systems available and accessible Automated Core business system implemented Technology roadmap developed and Implemented Enterprise Architecture encompassing Business, Information, Data Application, Technology, and Infrastructure Architectures covering the Agency’s core business value chain developed and implemented Business, Information, Data Application, Technology, and Infrastructure Architectures implemented in the IT systems Business, Information, Data Application, Technology, and Infrastructure Architectures implemented in the IT systems % implementation of automated core business systems Biometric identification solutions implemented in all regions to improve fraud prevention. MIS Registry modules integrated in all regions. Scanning on demand for backlog files implemented 50% of automated core business systems implemented (application to approval automation) 100% of automated core business systems implemented (including payment card issuance services)

37. 37 2011/12 – 2013/14 MTEF PLAN cont… BRANCH: CORPORATE SERVICES OutputPerformance Indicator Target 2011/12 Target 2012/13 Target 2013/14 Effective and Efficient management and development of human capital Optimal utilisation of staff Skills audit in Finance and Internal Audit conducted against new job profiles, report developed and phased implementation of recommendations Skills audit in the remaining programs of the agency conducted against new job profiles, report developed and phased implementation of recommendations Matching and placement of staff Revised organisational structure in line with the BPR operationalised Filling of all targeted, Funded vacancies

38. 38 2011/12 – 2013/14 MTEF PLAN cont… BRANCH: CORPORATE SERVICES... OutputPerformance Indicator Target 2011/12 Target 2012/13 Target 2013/14 Effective and Efficient management of facilities and auxiliary support services Audit report on the status of the building Infrastructure developed Audit report on the status of the building Infrastructure developed Effective and efficient management of facilities and auxiliary support services The Agency’s building infrastructure improvement plan developed Integrated Communication and Marketing Strategy implemented Stakeholder Management Strategy developed and implemented Stakeholder Management Strategy developed Stakeholder Management Strategy implemented Stakeholder Management Strategy implemented

39. 39 OutputPerformance Indicator Target 2011/12 Target 2012/13 Target 2013/14 Grant Payment System developed and implemented Grant Payment system standardised Grants payment contract/s issued Centralised payment database (Enrolment and issuance of the Agency Payment Card) Transaction facility for control of grant payments developed Service Delivery Model implemented Comprehensive integrated Service Delivery Model business plan developed and approved SDM Governance structure established SDM Toolkits developedSDM Implemented Comprehensive integrated SDM business plan developed and approved 2011/12 – 2013/14 MTEF PLAN cont… BRANCH: STRATEGY AND BUSINESS DEVELOPMENT

40. 40 2011/12 – 2013/14 MTEF PLAN cont… BRANCH: STRATEGY AND BUSINESS DEVELOPMENT… OutputPerformance Indicator Target 2011/12 Target 2012/13 Target 2013/14 Integrated Monitoring and Evaluation Framework Implemented Service delivery Monitoring reports on pay points and service points produced Service delivery monitoring reports on pay points and service points produced Service delivery monitoring reports on pay points and service points produced Service delivery monitoring reports on pay points and service points produced Number of evaluation surveys conducted 2 evaluation surveys conducted (Impact of CSG, trends analysis of service delivery constraints) 2 Diagnostic surveys conducted (SRD trends analysis and implementation of Disability Grant Model) 5-Year Agency performance review report developed 1 Diagnostic survey conducted (Foster Child Management) The Agency’s business processes optimised Key business processes reviewed and documented Macro audit of current business processes reviewed and documented Phased implementation of the recommendation Organisational structure Systems and processes Matching and Placing

41. 2011 MTEF Strategic Financial Plan

42. Agency’s ENE aligned financial plan 42

43. Agency’s ENE aligned financial plan SASSA’s budgetary constraints manifested in the accumulated budget deficit of R884 million The budgeted surplus as shown in the table is aimed at reducing this accumulated deficit over the MTEF period Coupled with reducing the deficit SASSA have to deal with the expanding scope of work that necessitates implementation of new projects which requires funding The Agency’s spending over the MTEF period will have a particular focus on improving the grant application process, and implementing a new social grants payment model that will contribute towards savings in the administration budget Baseline prioritisation was done to sufficiently fund new critical projects and align the budget with planned outputs. –Funds have been redeployed from the cash payment contractors’ fees which will see expenditure on this item declining 43

44. Cost containment measures Considering the accumulated deficit and the fact that SASA has to ensure efficient and smooth service delivery to our beneficiaries, a turnaround strategy was initiated Part of the strategy included the introduction of austerity measures which are targeted at expenditure that could be curbed without any serious repercussions or disruption of service delivery To this end we have seen a positive decline in expenditure on items such as travel, catering etc. The allocation of budgets to these items even took into account these cost containment measures as a guiding principle and thus ensured that the budget on these items is kept to the minimum These cost containment measures will continue as part of the strategy to achieve financial stability. We do, however, acknowledge that these cost containment measures might not be sustainable in the long run and might affect service delivery and will call for serious trade-offs when deciding on projects and the budget allocations going forward Focus will be a combination of service delivery and on achieving and maintaining financial stability The following slide provides an overview of the funded priorities 44

45. Budgeted Key Priorities Priority2011/122012/132013/14 R’000 Cash Payment Contractors’ fees 2,474,619 1,642,819 1,771,219 Compensation of employees 1,826,941 1,927,418 2,023,818 Various contracts for facilities i.e. offices, security, cleaning, fleet, maint. & repairs 606,703 657,251 716,954 Automation of the Grant Business Process 113,000 195,000206,000 SITA services (SOCPEN maint. & Mainframe time) 100,393 109,638 119,315 Medical assessment fees 93,504 98,142 103,049 Bulk Notification (Beneficiary notifications) 63,140 66,297 69,612 Virtual Network Connectivity (VPN) 52,589 57,848 63,633 ICT infrastructure deployment 27,560 28,938 30,385 Local Office upgrade project 15,000 15,750 16,538 Fraud investigations (SIU) 23,000 5,250 5,513 Management Information System (MIS) 20,000 New payment model 7,000 55,000 289,138 Internal Review Mechanism 18,144 19,051 20,099 Projects addressing exceptions raised by the AG on grants files management 36,00022,100 7,205 Business Process Re-engineering 5,000 15,000 - 45

46. Budgeted key priorities/cost drivers Cash Payment Contractors’ fees –reduced disbursement transaction fees negotiated with CPC’s results in a decrease costs for 2011/12 –the implementation of the new payment tender results in projections of further reductions for the years 2012/12 Automation of the Grant Business –Improving the grant application process, tackling fraud and improving the application process turn-around time Payment tender and model –The allocation for 2011/12 for planning and logistics related to the tender and in 2013/14 for planning and roll-out of model Grant Administration –Address AG concerns in the area of grants administration and record keeping. –Caters for projects such as: reviews support registry management transportation of the files 46

47. Budgeted key priorities/cost drivers ICT infrastructure deployment in new offices and existing offices where required Skills Audit and result implementation –Project will be initialized and implemented in 2011/12 Business Process Re-Engineering –Project will be initialized in 2011/12 with full implementation in 2012/13 Compensation of Employees –Critical, additional and current posts have been funded to ensure the acquiring of sufficient and correctly skilled human capital for improved and more efficient service delivery –Results of Business Process Engineering will be borne as part of CoE in 2013/14 47

48. Recommendations It is recommended: That the Portfolio Committee notes the presentation; and Support the Agency in implementing the Strategic Plan

49. 49