SASSA STRATEGIC PLAN 2013/14 Presentation to the Select Committee on Social Services 07 May 2013

1. SASSA STRATEGIC PLAN 2013/14 Presentation to the Select Committee on Social Services 07 May 2013

2. The purpose of the presentation is to: Provide the Select Committee on Social Services 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. 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.

5. 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 • Finalisation of the improvement Local offices • Fraud management • Staff Uniform • Biometrics for staff • Recruitment Of People With Disabilities and unemployed CSG recipients with basic qualifications • Grant Debtor Management • Strategic Partnerships • EPWP • Major Community outreach programmes (250) • Clean Audit 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 Green – Achieved; Amber – In process Red – Not Achieved; and White – Ongoing work

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 SOWETO LOCAL OFFICE ( AFTER IMPROVEMENT) Bloemfontein and Thaba Nchu 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 developmental 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 SASSA’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 - Malnutrition & Disability

21. SASSA Financial Plan 2013/14 - 2015/16

22. 2013/14 MTEF Appropriation • Revised appropriation incorporating adjustments • The table shows the baseline allocation and reductions over the MTEF period

23. 2013/14 MTEF Appropriation • The budget appropriation grows by 3%, 4% and 4% respectively over the MTEF period • The 2013/14 baseline allocation of R 6 531 188 (as per the 2012/13 ENE) was reduced by an amount of R 220,140 million. • the reductions includes the mandatory cuts by National Treasury amounting to R 165 million; • a further transfer to DSD for the absorption of social work graduates; and • the transfer of the Fraud Hotline to the PSC

24. SASSA Administration Budget Allocation & Projected spending over the MTEF

25. Allocation per Economic Classification

26. Allocation per Economic Classification

27. SASSA administration Budget Allocation over the MTEF • The 2013/14 allocation for SASSA is R 6,311 billion whilst the projected expenditure for the same period is R 6,576 billion. This reflects a deficit of R 264 million • During the 2012/13 financial year, SASSA was granted approval to retain the surplus amounting to R 748 million. The surplus funds has been spread over the three years period and will be utilised to offset projected deficit of R 264 million in 2013/14; R 277 million in 2014/15 and R 207 million in 2015/16 respectively • This explains the variance between total revenue ( budget) and the projected expenditure reflected in the previous slide

28. Summary of Allocation per key Cost Drivers

29. Explanatory notes on Budgeted key Cost Drivers • About 37% of the total allocation goes towards the payments of compensation of employees • The second major cost driver is contractors fees which goes towards the handling fees for grants payments • This is followed by lease payment and property expenses • The allocation for external computer services caters for most of the SITA contracts which includes SOCPEN maintenance and mainframe time.

30. 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

31. 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

32. Key Strategic Challenges

33. 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

34. Recommendations • It is recommended that Select Committee on Social Services note and support SASSA’s key strategic programme and budget for 2013/14 – 2016/17.