KEY STRATEGIC PROGRAMMES Presentation to Portfolio Committee 24 APRIL 2013

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

2. 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. Purpose

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. May 2011 – March 2012 April 2012-March 2013 April 2013-March 2014 • 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 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) • 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

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 theSocial Assistance Programme

10. Implementation of the Social Assistance Programme

11. Re - Registration

12. GRANT Reviews

13. Local Office & Service Points Improvements

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

15. Organisational Review

16. Future Payment System

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

18. Organizational efficiency Automation Financial Management Improve turn around for payment providers; Grant Debtors Management ; and Eliminate austerity measures in so far as it impacts on service delivery. • 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

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. SASSA Financial Plan 2013/14 - 2015/16

22. SASSA Administration Budget Allocation over the MTEF

23. SASSA Administration Budget Allocation over the MTEF

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 • Revised appropriation incorporating adjustments • The table shows the baseline allocation and reductions over the MTEF period

26. Summary of allocations per key cost drivers

27. Summary of allocations per key cost drivers

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

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