Annual Performance Plan & Budget 2017/18–2019/20 Presentation to Portfolio Committee on Social Development 10 May 2017

Presentation Outline Purpose Overview SASSA’s Strategic outcome oriented Goal 2014 – 2019 MTSF Priorities SASSA Strategic objectives 2017/18 Targets per Programme Financial Plan Recommendations

Purpose To present SASSA 2017/18 Annual Performance Plan and Budget to the Portfolio Committee on Social Development.

Overview

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 institution to manage broader social security benefits The social assistance programme and the operation of SASSA is fully funded by government.

Overview Vision Mission SASSA’s Slogan “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!

SASSA’s Strategic Outcome Oriented Goal NDP OUTCOME RELEVANT TO SASSA Outcome 13: An inclusive and responsive social protection system SUB- OUTCOME (SO) SO4: Deepening social assistance and extending the scope for social security. SASSA STRATEGIC OUTCOME ORIENTED GOAL Expand access to social assistance and creating a platform for future payment of social security benefits. SASSA GOAL STATEMENT To render social assistance to eligible beneficiaries

SASSA 2014-2019 MTSF Priorities The primary focus of SASSA in the medium term is: Reducing income poverty by providing social assistance to eligible individuals; Improving service delivery; Improving organisational efficiency; Automation of business systems; Institutionalising social grants payment system within 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

SASSA 2017/18 Strategic Objectives To improve the effectiveness and efficiency of the administration of the social assistance programme; To provide human capital management, facilities and auxiliary services; Effective information and communication technology; Effective financial management; and To uphold good governance.

2017/18 Targets per Programme

Programme 1: Administration

Improved Organizational Efficiency Sub-programme 1.1: Executive Management Objective To uphold good governance Planned 2017/18 Targets Internal Audit Fraud Management Risk Management 30 Internal audit reviews conducted on high risk areas 72 fraud, theft and corruption awareness programmes conducted across the 9 Regions. Fraud, theft and corruption cases investigated. 70% of new cases investigated; and 100% backlog cases investigated. An updated Strategic Risk Register maintained. An updated Operational Risk Register maintained (Head Office).

Improved Organizational Efficiency Sub-programme 1.2: Corporate Services Objective To provide human capital management, facilities and auxiliary services Planned 2017/18 Targets Human Capital management Facilities Management HR Plan reviewed (focusing on the revised grant value chain) Capacity model reviewed (focusing on the revised grant value chain) 95% of funded posts filled Co-sourcing for 3 Regions concluded Limpopo Northern Cape Mpumalanga

Improved Organizational Efficiency: Sub-programme 1.3: ICT Objective Effective ICT operations Planned 2017/18 Targets Biometric Solution for users acquired and implemented. SASSA network connectivity infrastructure upgraded (Head Office, Regional Offices, Records Centres, District offices and 50 Local offices). Governance Risk and Compliance Solution Procured and Implemented. Data service integration solution procured and implemented.

Improved Organizational Efficiency: Sub-programme 1.3: ICT Objective Effective ICT operations Planned 2017/18 Targets Automation of Registries Back scanning solution implemented in 6 regional records centres. On-going scanning implemented in Fifty (50) local offices. Enterprise Business Intelligence Solution implemented in all branches (Finance, Corporate Services, ICT, Strategy and Business Development). Web-interface solution procured and configured.

Improved Organizational Efficiency Sub-programme 1.4: Financial Management Objective Effective financial management Planned 2017/18 Targets Unqualified audit outcome achieved. 100% eligible suppliers paid within 30 days. 5% of social assistance debts recovered and/or written off.

Benefits administration and support Programme 2: Benefits administration and support

Implementation of the Social Assistance Programme Objective To provide social assistance to qualifying/eligible beneficiaries Planned 2017/18 Targets Planned to reach 1.5 (1 512 000) million new applicants. 95% of new social grant applications processed within 10 days. Increase the number of grants in payment from 17.1 million to 17.5 (17 523 737) by end of 2017/18 financial year. Increase the number of children aged 0 – 1 in receipt of CSG from 534 717 to 560 000. 500 000 SRD applications will be awarded to families under distress (SRD budget for 2017/18 - R600 million).

Implementation of the Social Assistance Programme Objective Reduction of inclusion and exclusion errors in the social assistance programme Planned 2017/18 Targets Process foster care grants reviews in collaboration with DSD. 232 757 FCG reviews are targeted.

Improved Service Delivery Objective To raise awareness of beneficiaries on their rights and obligations relating to social assistance Planned 2017/18 Targets ICROP: 600 identified wards having access to social assistance through ICROP Mikondzo 40 Mikondzo service delivery interventions conducted Public Participation 600 beneficiary education awareness programmes conducted. 1000 public awareness programmes conducted

Improved Social Grants Payment System Objective Improved customer centric Planned 2017/18 Targets Resolve 80% of enquiries within 5 days as per SASSA’s customer care charter. Monitor 100% of large cash paypoints (Paying more than 300 beneficiaries a day). Cost of administering social assistance - R44.00 per beneficiary. Cost as a percentage of social assistance transfers budget - 5.1% (R7.7bn).

SASSA Payment Insourcing Plans SASSA’s plan to deliver an improved ‘’One stop’’ Grant Administration and Payment Service will unfold as follows: SASSA to collaborate with SAPO in the payment of grants Those services that SAPO cannot provide will be procured through an open tender process, but approval from the Office of the Chief Procurement Officer for a shortened procurement timeframe will be sought SASSA’s change programme will be implemented progressively to take responsibility starting with: Enrolment Card issuance and maintenance Customer management

SASSA Financial Plan

SASSA’s MTEF Appropriation

Commentary on the medium-term estimates The medium-term estimates for SASSA comprises: 2017/18 2018/19 2019/20 Transfers R7,206 060 R7,760,679 R8,195,729 Retained surplus: R 502,000 R 123,000 - Own revenue: R 4,400 R 4,600 R 4,876 There has been a total reduction of R569,149 million on the Agency’s baseline over the 2017/18 MTEF made up of R267,881 million in 2017/18, R146,751 m in 2018/19 and R154,517 m in 2019/20. These reductions were effected during the MTEC process to fund other government pressures. These reductions are resulting in spending pressures on the Agency particularly considering the transition phase.

Medium-term estimates: Programmes

Medium-term estimates: Key Items

Implications of the budget reduction SASSA had to reduce its 2017/18 baseline allocation by an amount of R209,657 million in line with the budget cut implemented by National Treasury Undertaking prioritisation of projects/activities Prioritizing more on “must-haves” including contractual obligations and or commitments Some of the critical projects forming part of the SASSA’s operations could not be accommodated SASSA also had to scale down on the filling of critical vacancies The operational budget has been cut to the bone thereby affecting service delivery

RECOMMENDATIONS It is recommended that the Portfolio Committee note and support SASSA’s Annual Performance Plan and Budget for the 2017/18 financial year.

THANK YOU