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This presentation provides an overview of the strategic plan of the South African Social Security Agency (SASSA) for the period 2014/15 – 2018/19. It highlights key projects, the financial plan, risks and challenges, and recommendations for the agency. The purpose of the presentation is to inform the Portfolio Committee on Social Development about the agency's strategic priorities and budget allocation.
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KEY STRATEGIC PROGRAMMES Presentation to Portfolio Committee on Social Development 02 July 2014
Presentation Outline • Background • Strategic Plan • Key Projects • Financial Plan • Risks and Challenges • Recommendations
Purpose • The purpose of the presentation is to: • Provide the Portfolio Committee with a broad overview of the strategic plan 2014/15 – 2018/19; • Highlight priority areas of the Agency for 2014/15; and • Give an overview of the budget allocation.
Introduction • SASSA is a Schedule 3A Public Entity that was established in April 2006. • The objectives of SASSA are: • 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 institution to manage broader social security benefits • The social assistance programme and the operations of SASSA are fully funded by government.
Rationale for establishment of SASSA • The business case for establishment of SASSA, sought to address the following: • Address the fragmented institutional arrangements and a lack of uniformity; • Address gaps and inconsistencies in the application of rules • The reduction of the turn around time for grant applications • Improvement in customer services and dignified treatment of citizens • Improvement in the integrity of the data and systems with a concomitant reduction in opportunities for fraud • Reduction of litigation with regard to social assistance matters • Reduce high administrative costs; and • Address the poor quality of service delivery.
Human Resource capacity • The organizational structure of SASSA provides for 18,000 staff members at different levels. • 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 from the current service provider.
SASSA’s FOOTPRINTS • SASSA has the responsibility to ensure access to social assistance, in line with the Constitution. This is done through the extensive footprint the Agency enjoys in the country.
May 2011 – March 2012 April 2012-March 2013 April 2013-March 2014 • 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 -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 • 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
Number of grant benefits and growth rates (2012/13 vs. 2013/14)
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!
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
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
Future Payment System (cont…) • The preparatory work would be done in phases, as follows: • Phase 1 (2012 -2014): Centralisation and Improvement of integrity of the data which included collection of biometric data. This has been achieved through the re-registration process. In addition, SASSA introduced beneficiaries to a electronic banking environment • Phase 2 (2014 – 2015): Taking over on-going enrolment process (that is the biometric enrolment of all new grant beneficiaries) (In process) • Phase 3 (2014 - 2015): DATA Factory - Developing SASSA’s in-house capability to manage enrolments, payments and reconciliations (in process) . • The phases above will run parallel to the new tender process.
Other initiatives to be addressed by SASSA • 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. • Intensive effort to recruit people with disabilities • Exploring measures to build SASSA’s Future Workforce by establishing partnerships with universities and technikons and giving bursaries for training and education in the field of social security.
Key Projects 2014 • The 2014 projects prioritised for the coming year include: • Payment Tender (R10 million) • Automation • Biometric Access for staff (ICT and Building) • Scanning of documents • CSG exclusions and Foster Care Reviews • Organisational Review • Grant debtors • Data Factory • Mikondzo – 420 ICROP
SASSA Financial Plan 2013/14 - 2015/16
Overview of the budget • The strategic and spending focus of SASSA is on the administration and payment of social grants. • 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. • Following success of the financial turnaround strategy unaudited AFS for 2013/14 shows a net accumulated surplus of R1, 089, 000 billion. The funds will strategically be used on flagship once-off projects.
Overview of the budget • The majority of the budget (39%) is on compensation of employees, followed by the cash handling fees (30%), while the balance caters for operational expenses such as office accommodation, cleaning, security, travel, communication, etc. • 54 % of the budget is located at Head Office while 46% is shared among the nine regions. The majority of the 54% of head office’s share includes the cash handling fees which makes Head Office’s share bigger. • Internal allocation process is guided by the principle of affording first priority to key cost drivers and striving for an achievement of balance between competing needs
Overview of the budget (cont…) • The award of a cash disbursement contract to a single contractor has resulted in positive spin-offs as the cost of business in this area has declined • However, efforts to address service delivery challenges at local offices and service points necessitated the acquisition of requisite human capacity, leading to an increase in compensation of employees.
Risks and Challenges • Payment Tender - implementation of the ConCourt order • Declining resources against SASSA’s future growth plans • Fraud, theft and corruption • Disaster Management – systems, registries and facilities • SASSA Reputational Damage needs to managed • Unintended consequences of the payment process - deductions
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
Recommendations • It is recommended that Portfolio Committee note and support SASSA’s key strategic programme and budget for 2014/15 – 2018/19
