1. Presentation to Portfolio Committee on Social Development
Strategic Plan of SASSA
27 March 2008

2. Outline of the Presentation
Part One: Strategic overview;
Part Two: Achievements and challenges facing the Agency;
Part Three: Programme priorities and plans;
Part Four: Revenue and Expenditure Estimates; and
Part Five: Concluding Remarks and Questions

3. Part One
Strategic Overview

4. Achievements Against 2007 Priorities
The following were the priorities for 2007:
Improving Service Delivery Quality
Improving Organizational and Financial Management Capacity
Enhancing Social Grants Process Integrity
Minimizing Fraud

5. Achievements and Challenges facing SASSA
Part Two
Achievements and Challenges facing SASSA

6. Achievements Against 2007 Priorities
Improving Organizational Capacity:
Head and 9 Regional Offices establishment and operating since December 2005
240 Local Offices;
Around 7000 staff members employed within the administration and management
Corporate Governance Structures, Policies, Systems and Delegations in place such as the EXCO, Audit, Tender Process and Financial Misconduct (Board) Committees

7. Achievements Against 2007 Priorities
Improving access to social grants:
517 service delivery points; and pay-points across the country
40 mobile units (trucks in form of social grants administration office) deployed in rural provinces
Implementation of the Integrated Community Registration Outreach Programme (ICROP)
Reduction of turn-around time (application-approvals-payments) -(21) days to approximately three (3) days in most regions;

8. Achievements Against 2007 Priorities
Improving Service Delivery Quality
Norms and standards are being implemented on the social grants administration system
A District Service Delivery Model and Plan developed (currently implementation and costing implications)
Disability Management Framework and System
Customer Care Charter which is aimed at ensuring public confidence in the operations of the Agency (developed and implemented)

9. Achievements Against 2007 Priorities
Minimizing Fraud
ineligible public servants removed from the social grants system
7 195 of these public servants prosecuted and convicted
1 948 private individuals also prosecuted and convicted
Around public servants signed Acknowledgement of Debts which is around R83m
Prevention and compliance plan is being implemented (comprises e.g. compliance checks on social grants system)

10. Achievements Against 2007 Priorities
Minimizing Fraud
Code of Conduct and Ethics is being implemented
Whistle-blowing policy being implemented
Pre-employment screening of all new employees – particular those dealing with applications and approvals for social grants
Security and integrity vetting of all senior managers and targeted in high risk areas (Supply Chain Management)

11. Achievements Against 2007 Priorities
Improving Social Grants Process Integrity
Implementation of Management Information System, which includes the Registry and Workflow Modules, were implemented in regions
Regular Review on the Social Grants System
Monitoring tool has been developed and implemented at pay points to ensure that the service providers contracted to disburse social assistance grants are in compliance to the contractual agreements of disbursing of the grants to the beneficiaries
Improved Grants Application Process (IGAP) Strategy is being piloted in the regions that ensures compliance with the system and procedures regarding applications
Different modules in the IGAP Strategy are being implemented

12. Part Three:
Programme Priorities

13. Priorities for 2008 Strategic Plan
Priorities are:
Continuation of the Institutional Reform and further enhancement of the Agency
Benefits Administration and Payment Service Reforms
Fraud Prevention, Detection and Investigation
Legislation and Policy Implementation on Social Assistance

14. Programme 1: Office of the CEO
Priorities for this programme are:
Providing strategic leadership to the management of the organization;
Overseeing the implementation of institutional policies;
The capacitating of the organization;
Ensuring the necessary governance structures are in place, operational and working effectively; and
Ensuring effective, efficient and economical management of SASSA’s resources.

15. Programme 1: Office of the CEO
Measurable Objective :
To provide strategic leadership and overall management regarding the administration and payment of social grants
Outputs for 2008 Strategic Plan
Efficient and effective leadership in management of operational and strategic matters within SASSA
Effective management of relations with key strategic stakeholders

16. Programme 2: Strategy and Business Development
Priorities for this programme are:
Introduce the Medium-Term Strategic Framework for the administration, payment and management of social security and associated reforms;
Introduce social security institutional, organizational, administrative and service delivery reforms
Introduce the design and payment arrangements of a new cost-efficient and effective social security payment system

17. Programme 2: Strategy and Business Development
Outputs
Improve multi-year strategic and operational planning at all levels
Improve the monitoring and evaluation system for comprehensive delivery of institutional performance
Standardised and uniform cash payment contract in all regions
Strategic partners on social security administration institutions; public and private institutions; and research institutions

18. Programme 3: Internal Audit & Risk Management
Priorities are:
Enhancing good corporate governance;
Promotion of ethics and compliance;
Provision of effective internal audit services;
Provision of fraud investigative and compliance services; and
Provision of effective risk management advisory services.

19. Programme 3: Internal Audit and Riskk Management
Measurable Objective :
To reduce fraud and corruption in SASSA through effective and efficient risk management and internal audit controls
Outputs for 2008 Strategic Plan
Quality internal audit services provided
Fraud prevention strategies implemented
Risk management strategy developed and implemented

20. Programme 4: Communications & Marketing
Priorities for this programme are:
Strengthening internal communication;
Branding and publications strategy; and
Stakeholder management strategy.

21. Programme 4: Communications and Marketing
Measurable Objective :
To communicate and market the services of SASSA through the dissemination of accurate information timeously to internal and external stakeholders
Outputs for 2008 Strategic Plan
Stakeholder management strategy developed and implemented
Branding and publication strategy developed and implemented
Communication strategy reviewed and implemented

22. Programme 5: Corporate Services
Priorities for this programme are:
Provision of human capital management services;
Provision of change management services;
Provision of auxiliary support services; and
Provision of legal and contract management

23. Programme 5: Corporate Services
Measurable Objective :
To improve organisational effectiveness through the provision and
effective and efficient management of human capital, change management, auxiliary support and legal Administration Services
Outputs for 2008 Strategic Plan
Effective and efficient management and development of human capital
Effective, efficient and integrated Change Management Programmes
Economical, effective and efficient of provision property and related services
Render effective and efficient Legislation, Litigation and Contract Administration Services

24. Programme 6: Office of the Chief Financial Officer
Priorities for the programme
Roll out and implementation of the ERP project
Improvement of controls and systems
Training on accrual accounting and alignment of procedures
Updated web based financial projecting module and reporting tool for social assistance

25. Programme 6: Office of the Chief Financial Officer
Measurable Objective :
To maintain and promote sound financial management through the
development and implementation of sound financial policies, procedures and delegations in respect of financial accounting, management accounting and beneficiary transfers
Outputs for 2008 Strategic Plan
Effective and efficient payment administration service and internal controls
Effective and efficient supply chain management service & Asset Management
Full implementation of the accounting systems (ERP)
Effective financial system support
Effective and efficient management of grants transfers

26. Programme 7: Information & Communication Technology
Priorities are:
Implement business systems that support and improve business processes;
Design and develop systems and processes for prevention and management of fraud and risks;
Provide ICT infrastructure for district and local offices; and
Design and develop an integrated information management solution

27. Programme 7: Information Communication Technology
Measurable Objective :
To provide effective and efficient information and communication
technology services through the development of systems, processes and policies
Outputs for 2008 Strategic Plan
Effective and efficient Information and Communication Technology (ICT)
services
95% of system Availability
100% standardised procedures and processes implemented in all regions
Mapped process and change management implemented
Architecture designs
Automation of Grants Administration: MIS

28. Programme 8: Grants Administration & Customer Services
Priorities are:
Increasing accessibility to social grants;
Data Quality Improvement;
Customer Relationship Management and Improvement; and
Institutional Reform

29. Programme 8: Grants Administration and Customer Services
Measurable Objective :
To render effective and efficient grant administration services
through the improvements of grant applications, payments, disability management, regular updating of beneficiary records and ensuring a customer centric approach
Outputs for 2008 Strategic Plan
SOCPEN interfaced with relevant data systems
Develop strategy to reduce backlogs; medical reviews and administration of Appeals
Payment and contract management services effectively and efficiently provided
Improved accessibility to service offices and pay points
Implementation of the Disability Assessment Model

30. Programme 8: Grants Administration and Customer Services (cont..)
Outputs for 2008 Strategic Plan
Improved grant application process (three-step model) implemented
Application backlogs in all regions eliminated
% development and implementation of standardised Social Relief
of Distress (SRD) processes and integration into MIS in all regions
Integrated Foster Care Management framework implemented in all regions
Management Information System (MIS) application tracking modules functional
in all regions
Improved verification of beneficiaries

31. Revenue and Expenditure Estimates
Part four
Revenue and Expenditure Estimates

32. Expenditure Estimate Estimated Audited outcome outcome
Estimated
Audited outcome
outcome
Medium-term estimate
R thousand
2004/05
2005/06
2006/07
2007/08
2008/09
2009/10
2010/11
Revenue
Non-tax revenue –
1,269
3,033
3,102
3,444
3,665
Sale of goods and
services other than
capital assets
1,055
1,640
1,680
2,000
2,200
Of which:
Admin fees
Other non-tax revenue
214
1,393
1,422
1,444
1,465
Transfers received
2,177,800
3,323,665
4,192,371
4,142,747
4,537,815
4,879,078
5,200,925
Social assistance
administration
4,136,599
4,072,747
4,517,815
4,859,078
5,180,925
Management
information system
55,772
70,000
20,000
Total revenue
4,193,640
4,145,780
4,540,917
4,882,522
5,204,590

33. Expenditure Estimate Expenses Current expense 2,140,470 3,090,821
Current expense
2,140,470
3,090,821
3,655,048
4,519,774
4,540,175
4,881,728
5,203,740
Compensation of employees
336,561
570,745
710,684
1,090,832
1,168,281
1,248,892
1,323,826
Goods and services
1,803,909
2,520,076
2,944,364
3,428,942
3,371,894
3,632,836
3,879,914
of which:
Payment contractors
1,447,490
2,131,301
2,015,056
2,189,941
2,420,964
2,687,531
2,956,153
Consultants, contractors and special services
82,356
169,977
175,413
183,114
148,765
160,666
173,519
Travel and subsistence
33,135
57,018
80,820
109,032
111,332
120,238
129,857
Total expense
2,177,800
3,323,665
3,818,656
4,520,247
4,540,917
4,882,522
5,204,590
Surplus / (deficit)
374,984
-374,467 –

34. Explanation of the Expenditure trends
SASSA’s budget grows from R4.1 billion in 2008/9 to R5.2 billion in 2010/11, at an average annual rate of 7.9 per cent. Expenditure on contracts with independent payments service providers accounts for more than 76 per cent of total beneficiary payments, and more than half of total expenditure.
Additional allocations in the 2008/9 Budget are for further investment in system improvements and increased capacity, as well as providing for the impacts of inflation on salaries and long term contracts. A deficit is reflected in 2007/08, which will be funded from the previous years’ surplus, as approved. This is to pay for accrued services related to those years

35. % growth (average annual)
Social Grants Expenditure by type of grant and region: 2004/05 to 2010/11
.2004/05
.2005/06
.2006/07
.2007/08
.2008/09
.2009/10
.2010/11
% growth (average annual)
R million
Old age
18,504
19,527
21,289
22,564
26,408
30,143
33,216
10.20%
War veterans 36 28 25 21 24 26
-3.80%
Disability
12,570
14,099
14,261
16,009
17,678
18,864
19,900
8.00%
Grant-in-aid 20 – %
Foster care
1,563
1,996
2,851
3,257
3,602
3,924
4,234
18.10%
Care dependency
760
916
1,006
1,132
1,266
1,378
1,486
11.80%
Child support
11,431
14,143
17,559
19,345
21,623
23,650
25,285
14.10%
Relief of Distress 41
112
124
135
146
Total
44,885
50,708
57,032
62,445
70,726
78,120
84,295
11.10%

36. Social Grants Expenditure by type of grant and region: 2004/05 to 2010/11
Eastern Cape
9,006
9,732
10,599
12,113
13,695
15,079
16,221
10.30%
Free State
3,049
3,352
3,706
4,496
5,091
5,620
6,060
12.10%
Gauteng
5,411
6,130
6,747
7,868
8,958
9,978
10,853
12.30%
KwaZulu-Natal
10,275
11,898
13,890
14,236
16,101
17,748
19,117
10.90%
Limpopo
5,802
6,815
7,636
8,117
9,173
10,097
10,862
11.00%
Mpumalanga
2,981
3,476
3,928
4,183
4,735
5,226
5,637
11.20%
Northern Cape
1,065
1,177
1,285
1,499
1,699
1,877
2,026
11.30%
North West
3,795
4,186
4,912
5,307
6,015
6,647
7,169
Western Cape
3,500
3,942
4,329
4,626
5,259
5,850
6,350
10.40%
Total
44,885
50,708
57,032
62,445
70,726
78,120
84,295
11.10%

37. Explanation on the Social Grants Expenditure by type of grant and region
In the 2007/08 financial year, SASSA exhibited a small saving relative to the budget allocation. For 2009/10, the budget increases by 13 percent to R70,726 billion largely due to the qualifying age equalisation for men for the grant for the aged. Moreover, the Child Support Grant is further extended to include children up to the age of 15 as from 1 January The average annual growth over the entire seven year period is 11,1 percent.

38. Part Five
Concluding Remarks

39. Concluding Remarks

40. THANK YOU