7 April 2006

1. PROJECT KHAEDU(“the challenge”)SMS Service Delivery ChallengeReport on Social Development – Makhado district 7 April 2006

2. Agenda • Executive summary • Situation • Complications • Suggestions • The cash payout point versus the bank account / merchandise

3. Sites visited during the week • Makhado Service Point • Hlanganani Service Point • Dzanani Service Point • Maebani Pay Points • Vhembe District Office Main focus

4. Executive summary and key message Social Security Services in Makhado Local Municipality appears to be well managed and demonstrates best practice in the grant application process (at one service point), but has a relatively low work volume in relation to the staff complement.

5. Situation Social Security Services in Makhado Local Municipality appears to be well managed and demonstrates best practice in the grant application process (at one service point), but has a relatively low work volume in relation to the staff complement. Situation • Best practice in grant application process at Makhado • High staff: work volume ratio in social security • Low staff: work volume in social work services • Physical location of some service points not optimal and access an issue • Staff are only partially happy • Clients appear satisfied • Maintenance a major issue • Management capacity limited • Relatively small number of beneficiaries use bank accounts for grant payments • Integration of systems not optimal

6. The Makhado Sub-District Office demonstrates best practice in the grant application process Applicant arrives at office Screening and check relevant docs Interview and fill in application form Senior admin officer manually verifies & approves Letter generated and given to beneficiary System verification and approval Data capturing Total cycle time = 45 mins Beneficiary collects 1st payment within next payment cycle Beneficiary collects card at pay point

7. The Makhado district pays approximately 226,758 beneficiaries every month, 80% of which are child support grants Child support grants Source: District office social securities manager, March 2006

8. The Makhado Local Municipality processes approximately 2086 new applications per month CSG = Child support grant OAP = Old Age Pension DG = Disability Grant FCG = Foster Care Grant Other = War Veteran Grant, Care Dependency Grant, Grant-in-Aid Source: February data from sub-district office manager

9. There appears to be an uneven distribution of staff Social Work Services Social Security Services Severely understaffed in Social Work Services Relatively low work-load per staff member in Social Security

10. The client survey showed a positive response “We are generally happy with the service”

11. Staff are happy with management, but unhappy with training, career progression, facilities, the PMS and use of the budget PMS = Performance Management System Source: staff questionnaire April 2006

12. Signage is non-existent at the Makhado sub-district office Main gate – western view Office entrance Main gate – eastern view Main gate

13. Maintenance at the office is problematic Public toilet Unkept garden Unkept garden Staff toilet – fixed already since the start of the project this week

14. Complications Social Security Services in Makhado Local Municipality appears to be well managed and demonstrates best practice in the grant application process (at one service point), but has a relatively low work volume in relation to the staff complement. Situation Complications • Duplicating the best practice requires only cabling (SITA) • Overstaffing of contract workers and lack of auxiliary services staff • Social work is a professional service (social security cannot move laterally) • Moving the office location dependent on SASSA (& Public Works?) – lengthy process • Unclear who is responsible for maintenance • Limited execution of delegations • Use of bank accounts is not optimally marketed at service point level • Best practice in grant application process at Makhado • High staff: work volume ratio in social security • Low staff: work volume in social work services • Physical location of some service points not optimal and access an issue • Staff are only partially happy • Clients appear satisfied • Maintenance a major issue • Management capacity limited • Relatively small number of beneficiaries use bank accounts for grant payments • Integration of systems not optimal

15. The local office has no delegation of authority … We cannot even authorise to get a car tyre puncture fixed…we have to phone the transport office, the transport office has to phone the service provider, the service provider then needs to get clearance from the district again…our vehicles are sometimes off the road for 1 week for very small problems We cannot do anything on maintenance except inform the district office, which we have already done (regarding the grounds and the toilets). The municipality says that it is the responsibility of Public Works, Public Works says it is the responsibility of the Municipality …but nor does the district office “The budget is all handled at provincial head office and for the current financial year has been slashed”

16. Suggestions Social Welfare Makhado appears to be well managed and demonstrates best practice in the grant application process, but has a relatively low work volume in relation to staff compliment. The district office is…. Complications Suggestions Situation • Roll out the Makhado standards to all service points • Implement a retention strategy for social work profession • Redeploy contract workers to the other service points • Create posts of groundsman and cleaner at service points • Follow-up on submissions on office space/relocations • Address the grey area on maintenance responsibility • Ensure the execution of delegations • The use of bank/merchandise payment method should be made compulsory to the applicants esp. the literate (CSG for young mother still at school) • Best practice in grant application process at Makhado • High staff: work volume ratio in social security • Low staff: work volume in social work services • Physical location of some service points not optimal and access an issue • Staff are … • Clients are… • Maintenance a major issue • Transport an issue • Management capacity limited • Relatively small number of beneficiaries use bank accounts for grant payments • Integration of systems not optimal • Duplicating the best practice requires only cabling (SITA) • Overstaffing of contract workers and lack of auxiliary services staff • Social work is a professional service (social security cannot move laterally) • Moving the office location dependent on SASSA (& Public Works?) – lengthy process • Unclear who is responsible for maintenance • Limited execution of delegations • Use of bank accounts is not optimally marketed at service point level

17. Agenda • Executive summary • Situation • Complications • Suggestions • The cash payout point versus the bank account / merchandise

18. A relatively small number of beneficiaries appear to use bank accounts for grant payments… …yet there appears to be limited visible effort to get beneficiaries to switch to using bank accounts • No visible signage informing beneficiaries of the benefits of using a bank account • Many beneficiaries were not aware of the possibility and advantages of using a bank account or a merchandiser “If we were given the bank payment option we would appreciate it” Source: Extrapolated from sample of Makhado sub-district office

19. Currently 1.6 million beneficiaries in the province… If we moved half of those currently receiving grants at the pay point to a bank account payment Approximately R106M saving per annum!!! Government could save millions by encouraging (enforcing?) the use of bank accounts for grant payments (at least for the young people) Cost to government of making grant payments

20. Dynamics at the pay point - “Servicing” (or robbing) the poor? Paypoint day is a social focal point for the village – is this good or bad? • Hawkers • Vegetables and other food • Cheap watches, radios and other electronic equipment • Clothes • etc …but also… • Loan sharks (who often temporarily confiscate the payment card of the beneficiary – R40 to replace) • Funeral policy vendors (often a very poor deal for a rural pensioner) • Security hazard (severe congestion around the gate) • School-going mothers miss school

21. Thank youNdolivhuha