1. KEY STRATEGIC PROGRAMMES Presentation to Select Committee on Social Service 16 September 2014 1

2. Purpose The purpose of the presentation is to: –Provide the Select Committee with a broad overview of the Strategic Plan of SASSA for 2014/15 – 2018/19; –Highlight priority areas of the Agency for 2014/15; and –Present an overview of the budget allocation. 2

3. Presentation Outline Background Annual Performance Plan 2014/15 Key Projects Financial Plan Risks and Challenges Recommendations 3

4. Background 4

5. SASSA is a Schedule 3A Public Entity that was established in April 2006. 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 –to 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. 5

6. SASSA’s FOOTPRINTS SASSA has the responsibility to ensure access to social assistance, in line with the Constitution. The coverage is as follows: Head Office (1) RegionsKZNNWECWCGPMPLIMPNCFSNational Regional Offices 1111111119 District Offices 44755455544 Local Offices 752662163833452614335 Service Points 423217242408173112110902 Pay-points 2781734302029712329621203632039937 6

7. Human Resource capacity The total number of funded posts 10 888 (including EPWPs) Filled posts stands at 9 699 (including EPWPs) The majority of these staff (70%) perform the grant administration function (application to approval), excluding the actual payment of grants. The full structure will be gradually implemented as the Agency takes over the payment of social grants. 7

8. Summary of past performance 8

9. Payment Tender Payment Model Automation Service Delivery Improvements –Improvement of Local offices –Capacity building @ level 5 and 7 –EPWPs –Standardisation – 4 step process 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 Unqualified Audit Re-registration - 20.7m Migration to new payment system Local offices improvement Fraud management Unqualified Audit Capacity building: –level 5 and 7 –EPWPs –Executive posts filled (95% achievement) Staff Uniform Payment Model Biometrics for staff Re-registration - 20.7m Migration to new payment system Local offices improvement Fraud management Unqualified Audit Capacity building: –level 5 and 7 –EPWPs –Executive posts filled (95% achievement) Staff Uniform Payment Model Biometrics for staff Re-registration Back office clean-up –R2 billion saving –CSG voluntary cancellations Payment Model – Ministerial Advisory Committee appointed Local Office improvement Linking of grant - cooperatives Fraud management ICROP – Mikondzo Staff Uniform Reviews Backlog (suspended) Biometrics for staff Unqualified audit Re-registration Back office clean-up –R2 billion saving –CSG voluntary cancellations Payment Model – Ministerial Advisory Committee appointed Local Office improvement Linking of grant - cooperatives Fraud management ICROP – Mikondzo Staff Uniform Reviews Backlog (suspended) Biometrics for staff Unqualified audit May 2011 – March 2012 April 2013-March 2014 April 2012-March 2013 9

10. Social Grants beneficiaries Number of social grants beneficiaries against the total population ProvinceTotal Population: Census 2011 Social Grants as at August 2014 Grants as a % of the total population Eastern Cape6,562,053 2,686,610 40.94 Free State2,745,590 952,019 34.67 Gauteng12,272,263 2,256,628 18.39 KwaZulu-Natal10,267,300 3,850,423 37.50 Limpopo5,404,868 2,279,028 42.17 Mpumalanga4,039,939 1,363,505 33.75 North West3,509,953 1,150,539 32.80 Northern Cape1,145,861 436,425 38.09 Western Cape5,822,734 1,393,226 23.93 Total51,770,56116,368,40331.62% 10

11. Grant TypeEastern Cape Care-Dependency 18 605 Child Support (Total 0-18)1 828 454 Disability 181 263 Foster Children 122 235 Grant-in-Aid 13 949 Old Age 522 051 War Veteran 53 Total2 686 610 11 Number of grants by grant type per province, as at 31 August 2014

12. Grant TypeFree State Care-Dependency 6 240 Child Support (Total 0-18) 644 503 Disability 77 778 Foster Children 42 805 Grant-in-Aid 1 666 Old Age 179 021 War Veteran 6 Total 952 019 12 Number of grants by grant type per province, as at 31 August 2014 (Cont…)

13. Grant TypeGauteng Care-Dependency 15 810 Child Support (Total 0-18)1 603 279 Disability 113 135 Foster Children 59 446 Grant-in-Aid 2 481 Old Age 462 384 War Veteran 93 Total2 256 628 13 Number of grants by grant type per province, as at 31 August 2014 (Cont…)

14. Grant TypeKwazulu-Natal Care-Dependency 35 942 Child Support (Total 0-18)2 731 397 Disability 294 411 Foster Children 134 989 Grant-in-Aid 33 530 Old Age 620 107 War Veteran 47 Total3 850 423 14 Number of grants by grant type per province, as at 31 August 2014 (Cont…)

15. Grant TypeLimpopo Care-Dependency 12 872 Child Support (Total 0-18)1 669 836 Disability 92 889 Foster Children 63 325 Grant-in-Aid 15 261 Old Age 424 818 War Veteran 27 Total2 279 028 15 Number of grants by grant type per province, as at 31 August 2014 (Cont…)

16. Grant TypeMpumalanga Care-Dependency 9 174 Child Support (Total 0-18)1 013 914 Disability 78 719 Foster Children 36 661 Grant-in-Aid 4 190 Old Age 220 831 War Veteran 16 Total1 363 505 16 Number of grants by grant type per province, as at 31 August 2014 (Cont…)

17. Grant TypeNorth West Care-Dependency 8 741 Child Support (Total 0-18) 778 784 Disability 85 795 Foster Children 43 053 Grant-in-Aid 6 097 Old Age 228 057 War Veteran 12 Total1 150 539 17 Number of grants by grant type per province, as at 31 August 2014 (Cont…)

18. Grant TypeNorthern Cape Care-Dependency 4 707 Child Support (Total 0-18) 283 448 Disability 49 329 Foster Children 15 229 Grant-in-Aid 5 827 Old Age 77 875 War Veteran 10 Total 436 425 18 Number of grants by grant type per province, as at 31 August 2014 (Cont…)

19. Grant TypeWestern Cape Care-Dependency 11 541 Child Support (Total 0-18) 904 118 Disability 153 966 Foster Children 30 678 Grant-in-Aid 10 831 Old Age 281 983 War Veteran 109 Total1 393 226 19 Number of grants by grant type per province, as at 31 August 2014 (Cont…)

20. FRAUD MANAGEMENT 2012/13: 7,734 cases received 5,130 cases finalised 1,871 cases closed 733 cases outstanding 87,4 million monetary value 2013/14 3,571 cases received 1,499 cases finalised 599 cases closed 1,473 cases outstanding 24,4 million monetary value 2014/15 242 cases received 102 cases finalised 295 cases closed 111 cases outstanding 184,101 monetary value 20 242 officials implicated 50 officials dismissed 92 suspended 9 resigned

21. Reduction in Litigation 21 SASSA 2012/132013/2014Total Difference No.Cost (R )No.Cost (R )No.Cost (R ) HO23 198 927.5913 398 096.091- 199 168.50 EC683 658 225.00432 485 513.42251 172 711.58 FS10.00118 582.390- 18 582.39 GP261 560.001227 439.411- 165 879.41 KZN71 450 272.87121 381 155.06- 569 117.81 LP029 509.92122 430.00- 17 079.92 MP153 869.5200.00153 869.52 NC1111 093.3500.001111 093.35 NW52 079 084.11220 517.5732 058 566.54 WC240 878.381131 850.311- 90 971.93 Total8910 683 420.74627 685 584.25-272 997 836.49

22. Strategic Plan 20114/15 – 2017/2019 22

23. Alignment of SASSA to NDP and the Manifesto Radical reform of the social grants administration and payment system to effectively deal with fraud and corruption through innovative solutions including biometric verification.

24. VISION “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! 24

25. STRATEGIC OUTCOME ORIENTED GOAL OF SASSA STRATEGIC OUTCOME ORIENTED GOAL 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 25

26. Key priorities for 2014/15 - 2018/19 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 26

27. Key Priorities for the MTEF 27

28. Implementation of the Social Assistance ObjectiveTo provide social assistance to qualifying/eligible beneficiaries Current Status Over 15 932 473 people are in benefiting from social grants. The take –up rates for new grants was1 311 469 in 2013/14 Attrition rate of more than 700 000 in 2013/15 largely due to voluntary cancellations, re-registration clean-up, and death. Planned Activities Target is to reach at least 1.1million new beneficiaries per annum. Increase the number of grants in payment from 15 932 473 to 16 052 000 by end of 2014/15 28

29. Implementation of the Social Assistance (cont…) ObjectiveImprove the management of Social Relief of Distress by ensuring qualifying beneficiaries are not disadvantaged. Planned Activities 150 000 SRD applications will be processed per annum over the next three years Priority will be given largely to: children suffering from mal-nutrition; assisting families where the breadwinner died or is unemployed; assisting in disaster situations; and individuals awaiting grants. 29

30. Implementation of the Social Assistance (cont…) Objective To reduce the inclusion and exclusion errors in the social assistance programme Current Status CSG Take-up rates for infants remained stagnant between 2008-11, at less than 50%. Backlog reviews of Foster Care Grants (more than 300 000) Planned Activities Increase CSG take up rates to 70% over the MTEF through active mobilisation. Conduct reviews for the foster care grants in collaboration with DSD targeting 500 000 children (Family finders and project managers will be appointed to track families to update court orders). 30

31. Service Delivery Improvement Objective To improve the conditions under which beneficiaries are served. Current Status Community Outreach programme (Mikondzo project) implemented throughout the country. Turn around time for processing of grant applications is on average 21 days. More than 259 local offices have been improved. Planned Activities 480 ICROP/ Mikondzo interventions Progressively reduce the turn around time for processing of grants to an average of 10 days by 2016 Complete the upgrading of remaining local offices; and Acquisition of new local offices and service points in areas of high need and upgrading. Pay point Development – Elimination of open space pay points (focusing on rural areas 31

32. Automation ObjectiveTo automate business systems Planned Activities  Implementing biometric physical access system for authenticating staff and beneficiaries.  Develop In-house system for management of beneficiaries biometrics information.  Development of SASSA data factory (Build in- house payment control and reconciliation capability).  Develop a system for scanning and storage of documents. 32

33. Improved Payment System ObjectiveThe objective is for SASSA to implement its full mandate of administering, managing and paying social grants. Current Status Constitutional Court declared the Payment Tender awarded to CPS invalid; the order has been set aside pending award of new tender Ministerial Advisory Committee has been established to advise the Minister on the future payment options for SASSA Planned Activities Implementation of the Court Judgment: Re-advertisement of the payment tender. SASSA plans to take full responsibility for the payment of social grants in 2017/19. 33

34. 34 SASSA Financial Plan 2013/14 - 2015/16

35. Overview of the SASSA budget 35 The baseline budget grows below the projected headline CPI of 5,4% and declines by an amount of R10 million 2014/15 and 2015/16 respectively.

36. 36

37. Overview of the budget cont. 37 39% of the budget is on compensation of employees, followed by the cash handling fees with 30%, while the balance caters for operational expenses such as office accommodation, cleaning, security, travel, communication,

38. 38

39. Overview of the budget cont. 39

40. Key Strategic Challenges 40

41. Risks and Challenges Payment Tender - implementation of the ConCourt order Unintended consequences of the payment process - deductions Declining resources against SASSA’s future growth plans Fraud, theft and corruption Disaster Management – systems, registries and facilities Opportunities Preparations for Universalisation of Old Age Pension and CSG. Other Social Security institutions are starting to engage with SASSA to assess the possibilities for SASSA to administer their payment. 41

42. Recommendations It is recommended that Select Committee note and support SASSA’s key strategic programme and budget for 2014/15 – 2018/19. 42

43. Thank you 43