1. Annual Performance Plan & Budget 2017/18 -2019/20
Presentation to Portfolio Committee on Social Development
19 May 2017

2. Presentation Outline Purpose Overview
SASSA’s Strategic outcome oriented Goal
2014 – 2019 MTSF Priorities
SASSA Strategic objectives
2017/18 Targets per Programme
Programme 1: Administration
Programme 2: Benefits Administration and Support
Improved Social Grants Payment System – Prioratisation of the implementation of the Constitutional Court order
Financial Plan
Recommendations

3. Purpose The purpose of the presentation is
To brief the Portfolio Committee on Social Development on the SASSA 2017/18 Annual Performance Plan and Budget ; and
Highlight the prioratisation of the implementation of the Constitutional Court order

4. Overview

5. Overview
SASSA is a Schedule 3A Public Entity established in April 2006 in terms of an Act of Parliament (SASSA Act, )
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 an institution to manage broader social security benefits
The social assistance programme and the operation of SASSA is fully funded by government.

6. 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!

7. 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

8. 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.

9. 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

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

11. 2017/18 Targets per Programme

12. Programme 1: Administration

13. Improved Organizational Efficiency
Sub-programme 1.1: Executive Management
Objective
To uphold good governance
Planned /18 Targets
Internal Audit
Fraud Management
Risk Management
30 Internal audit reviews conducted on high risk areas
Fraud Prevention:
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).

14. Improved Organizational Efficiency
Sub-programme 1.2: Corporate Services
Objective
To provide human capital management, facilities and auxiliary services
Planned /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
Implementation of the new model for Records Management Centres focusing on 3 Regions
Limpopo
Northern Cape
Mpumalanga

15. Improved Organizational Efficiency:
Sub-programme 1.3: ICT
Objective
Effective ICT operations
Planned /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.

16. Improved Organizational Efficiency:
Sub-programme 1.3: ICT
Objective
Effective ICT operations
Planned /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.

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

18. Benefits administration and support
Programme 2:
Benefits administration and support

19. Implementation of the Social Assistance Programme
Objective
To provide social assistance to qualifying/eligible beneficiaries
Planned /18 Targets
Planned to reach 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.
Process a total of new applications for children aged 0 – 1.
SRD applications will be awarded to families under distress (SRD budget for 2017/18 - R600 million).

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

21. Improved Service Delivery
Objective
To raise awareness of beneficiaries on their rights and obligations relating to social assistance
Planned /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

22. Improved Social Grants Payment System
Objective
Improved customer centric services
Planned /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).

23. Improved Social Grants Payment System (Prioritization of the implementation of Constitution Court order)
Objective
Improved customer centric services
Planned /18 Targets
Insourcing of Regulation 26A (elevated from Operational plan)
Set up of SASSA Holding Account
Appointment of New Service Provider/Solution Integrator
Phasing in New Service Provider and Phasing out of CPS
Submission of Constitutional Court quarterly Reports (costs associated with independent experts and Counsels)
Local Economic Development (Alternative pay-points)
Ongoing Communication and Change Management

24. SASSA Financial Plan

25. SASSA’S MTEF APPROPRIATION
2017/18
2018/19
2019/20
Baseline/Transfer
R’000
Less Reductions
To Fund other Government Priorities -
Revised Baseline/Transfer
Year-on-Year Growth on baseline 4% 8% 6%
Retained Cash Surplus
Own Revenue
4 400
4 600
4 876
Total

26. Commentary on the medium-term estimates
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.

27. Medium-term estimates: Programmes
Economic Classification
2017/18
2018/19
2019/20
R’000
1: Administration
Compensation of Employees
Goods and Services
Transfers
12 089
12 142
12 822
Subtotal
2: Benefits Administration Support
16 239
17 181
18 143
TOTAL

28. Medium-term estimates: Key Items
2017/18
2018/19
2019/20
R’000
Compensation of Employees
Goods and Services
Of which:
Agency and support/ outsourced services
Communication
85 708
Computer Services
Payment Contractors
Lease payments
Repairs and maintenance
88 428
94 754
Property payments
Other
32 464
34 379
36 304
Transfers and subsidies
28 328
29 323
30 965
Total Expenses

29. 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 essential items including contractual obligations and or commitments
SASSA also had to scale down on the filling of critical vacancies

30. Financial Implications for implementation of Constitutional Court order – 2017/18 Estimates
New Requirements
Key Activities
Estimated Costs
Was the activity planned
If not where does the funding come from
Insourcing of Regulation 26A
Contracting with Qlink R
Yes, however it was in the operational plan. (Programme 2)
To be covered under the current SITA Contract
Setting up of SASSA Holding Account
Setting up costs
R1 Million
Transfer of funds to Beneficiaries with commercial accounts
R28.8 m
Not required during the 2017/18
Phase-in of the new Payment Provider
Phasing in the new card
Cost to be factored in the new payment provider payment model
Transaction costs for piloting areas

31. Financial Implications for implementation of Constitutional Court order – 2017/18 Estimates
New Requirements
Key Activities
Estimated Costs
Was the activity planned
If not where does the funding come from
Submission of Constitutional Court quarterly Reports
Independent Monitors : Lawyers R No
Reprioritisation
Independent Monitors: Technical R
Senior Counsels R
Phasing out of CPS
Data Migration (SASSA to ensure that there is storage capacity & data verification capacity)
Already within SASSA operational plan
Transaction Costs
R16.44 X 12m X12
Yes

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

33. Thank you