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ANNUAL REPORT – 2018/19. Presentation to the Portfolio Committee on Social Development. Presentation Outline. Purpose Overview Summary of SASSA’s performance: 2018/19 Key Factors that had an impact on SASSA’s 2018/19 performance 2018/19 Annual Expenditure Report Audit Outcome
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ANNUAL REPORT – 2018/19 Presentation to the Portfolio Committee on Social Development
Presentation Outline • Purpose • Overview • Summary of SASSA’s performance: 2018/19 • Key Factors that had an impact on SASSA’s 2018/19 performance • 2018/19 Annual Expenditure Report • Audit Outcome • Recommendations
Purpose • The purpose of this presentation is to present to the Portfolio Committee on Social Development, SASSA’s 2018/19 Annual Report focusing on: • SASSA’s performance against its set objectives; • Budget and Expenditure; and • Audit outcomes
Overview • SASSA is a Schedule 3A Public Entity established in April 2006 in terms of an Act of Parliament (SASSA Act, 2004) • 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 • 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.
SASSA 2014-2019 MTSF Priorities • The primary focus of SASSA was: • Reducing income poverty by providing social assistance to eligible individuals; • Improving service delivery; • Improving organisational efficiency; • Automation of business systems; and • Institutionalising social grants payment system within SASSA.
SASSA Programmes • Programme 1: Administration • Sub-programme 1.1: Executive Management • Sub-programme 1.2: Corporate Services • Sub-programme 1.3: Information and Communication Technology • Sub-programme 1.4: Financial Management • Programme 2: Benefits Administration and Support • Sub-programme 2.1: Benefits Administration • Sub-programme 2.2: Payment Administration
OVERALL 2018/19 PERFORMANCE • SASSA’s performance improved from 64% in 2017/18 to 74% in 2018/19 financial year • The 2018/19 Annual Performance Plan had 39 planned targets, of which 29 were fully achieved. • Programme 1: Administration achieved 68% of the targets • Programme 2: (Grants Administration) achieved 82% of the targets • Key to the improvement is that, the AGSA has raised no material findings on the usefulness and reliability of the reported performance information and the Agency’s financial statements.
Summary of Agency Performance – Administration Outcome: Improved Organisational Efficiency
Summary of Agency Performance – Administration Outcome: Automation of Business Systems
Automation of Key Business Processes Upgraded ICT network infrastructure across the urgency in order to enable the introduction of major automation projects
Agency Performance – Services to beneficiaries Outcome: Reduce income poverty by providing social assistance to eligible beneficiaries
Social assistance Programme Total increase over 5 years: 1,169,102
Agency Performance – Services to beneficiaries Outcome: Service Delivery Improvement
Summary of Agency Performance – Services to beneficiaries Outcome: Institutionalized social grants payment process
Key Factors that Impacted Negatively on SASSA’s 2018/19 Performance
Key Factors that had an impact on SASSA’s 2018/19 performance
Key Factors that impacted negatively on SASSA’s 2018/19 performance
2018/19 expenditure outcome • Overall expenditure reached 83% resulting in a 17% under spending. The following explains the reasons for under – spending on key expenditure items. • Compensation of employees • There was a 7% underspending due to funded vacant posts not filled, mainly due to the moratorium. • The following senior management positions were among the posts not filled by 31 March 2019 : • Chief Executive Officer, • Executive Manager: Corporate Services, • Chief Operations Officer, • Regional Executive Managers: Limpopo, Mpumalanga, Northern Cape, Free State, KwaZulu-Natal and Western Cape.
2018/19 Expenditure Outcome Goods and services: • Spending on goods and services was 72%. • The significant underspending or savings on goods and services was on : • Cash Handling Fees (Savings from electronic payments and SAPO contract): • The savings of approximately R1 billion was mainly as a result of the transition in the payment of grants which led to two major change; • Costs for banked beneficiaries reduced from R16.58 to approximately R2 (for approximately 3 million recipients) • Migration of payment of majority (7.6 million) of beneficiaries to SAPO special disbursement accounts. Majority of the beneficiaries opted to receive their money through merchants (POS) or ATMS while the number at cash pay points declined thereby reducing the cost of disbursing monies.
2018/19 Expenditure Outcome Goods and services: • Cash Handling Fees: (Disputed CPS invoices) : • There is an amount of R236 005 209 (R223,441,486 and R12, 563, 723) recorded in the contingencies in respect of CPS outstanding invoices. • CPS submitted invoices in line with the rates recommended by National Treasury to Constitutional Court. • SASSA complied with the recommendations of the panel of experts appointed by the Court, that • SASSA pay CPS for July to September using rates recommended by national Treasury; • For April to June 2018 the already paid fees at R16.58 per recipient per month should remain unchanged. • The recommendation by the Panel of Experts was based on National Treasury having stated in its report to the court that it was constrained in determining the rates because CPS failed to provide National Treasury with material information requested. • CPS has taken this matter to court.
2018/19 Audit Outcome • Annual Financial Statements (AFS): • Annual Financial Statements were presented fairly • Unqualified audit opinion was received for the year ended 31 March 2019. • Declared Surplus for the financial year amounted to R1,232,599,049 • Performance Information • Similarly, SASSA received an Unqualified audit opinion on performance information. • AGSA did not raise any material findings on the usefulness and reliability of the reported information.
Recommendations • It is recommended that the Portfolio Committee on Social Development notes and support; • SASSA 2018/19 Annual Performance Report; and • SASSA financial statements for 2018/19.
