Presentation to the Select Committee on Social Services

1. Annual Report 2014/15 Presentation to the Select Committee on Social Services

2. Purpose of the Presentation • To present to the Select Committee on Social Services the SASSA 2014/15 Annual Report; focusing on: • Performance Information; • Budget and Expenditure 2014/15; and • Audit outcomes .

3. Presentation Outline • Overview • Programme Performance Information - Achievements against 2014/15 Strategic Priorities • Budget and Expenditure for 2014/15 • Summary of Audit Outcomes; and • Challenges

4. Overview

5. VISION “A leader in the delivery of social security services” MISSION To administer social security services to eligible children, older persons and people with disabilities. SASSA’s Slogan Paying the right social grant, to the right person, at the right time and place. NJALO!

6. STRATEGIC OUTCOME ORIENTED GOAL OF SASSA

7. Key priorities for 2014/15 - 2018/19 • The primary focus of SASSA in the 2014/15 – 2018/19 MTSF period is: • Reducing income poverty by providing social assistance to eligible individuals • Improving service delivery • Improving internal efficiency • Institutionalising social grants payment system within SASSA

8. Strategic Objectives • SASSA’s Strategic Objectives for the period under review were: • to ensure that eligible beneficiaries receive benefits due to them; • to improve the quality of service delivery to our customers; • to achieve a fully integrated and automated social assistance service; and • to ensure that the Agency is optimally capacitated for optimal service delivery.

9. PERFORMANCE INFORMATION Performance against the 2014/15 Priorities

10. Implementation of theSocial Assistance Programme

11. Applications processed per Region Total number of social grants applications by region for 2014/15 financial year

12. Implementation of Social Assistance Programme

13. Social Assistance Benefits by Regions Number of grant benefits by grant type and region as at 31 March 2015

14. Implementation of the Social Assistance Programme

15. SRD PER REGION Total Number of Social Relief of Distress disbursed in 2014/15 financial year

16. Implementation of the Social Assistance Programme

17. Service Delivery Improvement

18. Improvement of Service Delivery

19. Improvement of Service Delivery – ICROP Programmes per Region

20. Payment System

21. Payment System

22. Improved Administration: Automation

23. Improved Fraud management

24. Fraud and corruption Cases by Region including HO

25. Improved Fraud management (cont…)

26. Implementation of the Legal Services Model A total of 143 litigation cases handled. These include grant related litigation, labour disputes, contractual claims, motor vehicle accidents and procurement related matters

27. Improved Human Resources Management

28. Human Resource Management • SASSA further experienced the following challenges affecting key positions during the period under review: • The Regional Executive Manager of the Northern Cape region retired in March 2015. • The Regional Executive Manager of Limpopo was transferred to the Gauteng region in April 2014. This was necessary to ensure the stability of the Gauteng region as it is one of SASSA’s biggest regions. • At the end of the financial year, the Agency was in the process of filling the following key positions: The CFO, CIO, and REM (LP and NC) • As at 01 April 2015 the agency had 650 vacant funded posts with an estimated salary bill of R 213 million.

29. Improved Human Resources Management

30. Improved Financial Management

31. Improved Financial Management

32. FINANCIAL INFORMATION 2014/15 Audited financial outcomes

34. Expenditure per economic classification

36. Notes to the level of spending • Compensation of employees • A number of vacant funded posts were not filled at financial year-end that resulted in 4% underspending that included time delayed savings in filling of posts. • These include senior management posts such as the posts of Chief Financial Officer, Chief Information Officer, Regional Executive Manager: Limpopo and NC etc. • Some of the posts were at various stages of the recruitment process. As at 01 April 2015 the agency had 650 vacant funded posts with an estimated salary bill of R 213 million. • Goods and services: The under spending was mainly on: • Communication due to the telephone management system efficiencies • Cash handling fees due to the reduced cost of disbursing grant monies • Leases due to offices that were in the process of being occupied • Travel and subsistence due to spin-offs from cost containment measures

37. Auditor-General Report and Comments

38. Auditor General Report and Comments • AGSA’s opinion – Unqualified Audit. The AG found that: • SASSA’s financial statements present fairly the financial position of the Agency as at 31 March 2015 except for few adjusted misstatements • SASSA’s financial performance and cash flows for the year were in accordance with SA Standards of GRAP, PFMA and SASSA Act requirements • Predetermined objectives • Reliability of information: The has been significant improvement on the report on predetermined objectives concerning the usefulness and reliability of the information.

39. Other audit matters • Misstatements in terms of operating leases commitments disclosed • Shortcomings identified with the reimbursement of costs (R316 million) incurred towards Cash Paymaster Services in respect of additional resources procured for the re-registration project. • Poor turnaround time to finalize financial or possible financial misconduct cases

40. CHALLENGES

41. Challenges

42. Recommendations It is recommended that the Select Committee on Social Services note and support • SASSA 2014/15 Annual Performance Report; • SASSA financial statements for 2014/15; and • Challenges and the mitigation strategies that the Agency is implementing .

43. Thank you 46