1. Presentation on SASSA’s
Strategic Plan for the fiscal Years 2012/ /17 and Annual Performance Plan

2. Outline of the presentation
Purpose of the presentation
Background
Strategic overview
Situational Analysis
Key priority for 2012/13 – 2016/17
Strategic objectives for the next 5 years
Branch Strategic objectives and Targets
Financial plan
Recommendations

3. Purpose of the presentation
To present to the Select Committee on Social Services:
SASSA’s Strategic Plan for the financial Years 2012/ /17; and
Annual Performance Plan 2012/13.

4. Strategic Overview Vision Mission Mandate
The mandate of SASSA is to ensure the provision of comprehensive social security services against vulnerability and poverty within the constitutional and legislative framework.
Vision
A leader in the delivery of social security services.
Mission
To administer quality customer centric social security services to eligible and potential beneficiaries.

5. Values Social cohesion; Transparency; Equity; Integrity;
Confidentiality; and
Customer Care-centered approach.

6. Structure of the Agency
The structure of the Agency is as follows:
Branch 1 : Grants Administration;
Branch 2 :Strategy and Business Development;
Branch 3 :Information and Comm. Technology;
Branch 4 : Internal Audit and Risk Management;
Branch 5 : Corporate Services; and
Branch 6 : Finance.
9 REGIONAL OFFICES

7. Background
SASSA has been consistent in the provision of monthly income support to a significant number of South Africans.
As at end of March 2012, over 15.5 million South Africans are benefiting from social grants. These are as follows:
Child support –
Older Persons –
Disability –
Foster Care Grant
Card Dependency
War Veteran
Source: Daily stats March 2012

8. Situational Analysis
The Agency has over the last year intensified its efforts towards improving service delivery. Our initiative include:
Appointment of service provider to effect payment of social grants in all provinces.
This will eliminate fragmentation in the payment process;
Reduce cost - The Agency will also achieve a saving of R800m per annum; and
Establish a national payment database.

9. Situational Analysis (cont…)
Standardisation of the Application process;
The project is aimed at ensuring uniformity of services at the local office level;
Grant application forms have been reviewed and reduced, to eliminate capturing information which does not add value to the processes;
Business processes have been reviewed and mapped to eliminate duplication in functions;
All provinces have standardised the application process on a 4-step process; and
Front line staff trained on the improved processes.

10. Situational Analysis
Improvement of Local offices and pay-point infrastructure;
75 local offices were upgraded to suit the new standardised application process; and
Improvements in this regard included changing the office layout, installation of ICT infrastructure, branding and provision of adequate seating space for applicants and beneficiaries.
Improvement of pay-point infrastructure
The main aim of the project is to improve pay points nationally;
Improvement entails repairing, building and/or upgrading of the ablution facilities; purchasing of seats; erection of shelter (Tents), access ramps and fencing; and
370 pay points were upgraded for the 2011/12 financial year.

11. Situational Analysis cont.…
Audit for the 2010/11 final year, identified exceptions in the grant administration which led to audit qualification of the DSD;
Audit exceptions included among others significant numbers of missing files, loose correspondence which still has to be placed on the files and captured on the Management Information System; missing the critical documents; files which still needed to be transferred between regions; and old inactive files that needed to be destroyed; and
Significant progress has been made in addressing the AG findings and the exceptions were reduced by more than 60% across the board.

12. Strategic Objectives
Strategic Objectives for SASSA over the next 5 Years are:
To ensure that eligible beneficiaries receive benefits due to them;
To improve the quality of service delivery to our customers;
To achieve a fully integrated and automated social assistance service; and
To ensure that the Agency is optimally capacitated for optimal service delivery.

13. Key priorities for 2012/ /17
To deliver quality social security services by focusing on the following:
Excellent customer care;
The automation of systems;
Improving organisational capacity;
Promoting good governance; and
Re-registration of current beneficiaries.

14. Objectives and Targets
BRANCHES

15. Grants Administration
Strategic Objective
To improve the effectiveness and efficiency of the administration of the social assistance programme.
Objective Statement
To ensure that eligible beneficiaries receive their benefits timeously with respect to: OAG, DG, CDG, FCG, CSG, WVG and GIA
To provide quality customer- centric services at all times.
To provide strategic direction for the effective implementation of the social assistance programme.

16. Grants Administration: Performance Indicators Annual Targets for 2012/13 – 2014/15
SO: To ensure that eligible beneficiaries receive their benefits timeously with respect to: OAG, DG, CDG, FCG, CSG, WVG and GIA
Performance indicator
(Source:ENE2012)
Medium-term target
 2012/13
 2013/14
 2014/15
Projected total number of grants in payment
No. of old age grants in payment
No. of war veteran’s grants in payment
706
621
551
No. of disability grants in payment
No. of grants-in-aid in payment
65 724
70 325
75 247
No. of foster child grants in payment
No. of care dependency grants in payment
No. of child support grants in payment

17. Grants Administration: Annual Targets
SO: To provide quality customer- centric services at all times
Social Relief of Distress (SRD) funds will be disbursed in accordance with the approved guidelines
Continued improvements in the turnaround times for new grant applications processed
90% of new grant applications processed within 21 days and the percentage will increase to 100 % in 2013/14
Reviews will be conducted to clear backlog on both medical reviews and foster child grants and at least 20% of current foster child grant will be completed

18. Grants Administration: Annual Targets
Improvement in the payment processes
The Agency will re-register all beneficiaries by capturing biometrics and update basic data,
Beneficiaries will be issued with SASSA smart card that can operate in formal banking environment and designated SASSA cash pay-points.

19. Implementation of new payment solution
Key focal areas:
Re-registration
Uninterrupted Payment services
Communication with beneficiaries and key stakeholders
Managing litigation

20. Implementation phases - Phase 1
Phase 1: From 01 March to March
Phase 1 – Preparatory processes
it involved the enrolment of all new applications in all provinces; and re-registration of Sekulula beneficiaries
Enrolment of new applications
35 431 new applications for social grants were enrolled in 9 Provinces from the 01 March.
These beneficiaries were issued with SASSA payment card.
The beneficiaries first payments were effected in April 2012.
Registration of Sekulula beneficiaries
Registration of Sekulula beneficiaries commenced on the 01 March 2012
This are beneficiaries previously paid by Allpay where a special arrangement was made to pay them through ABSA bank.
At least beneficiaries were re-registered by end of March 2012.
Those who could not register are still encouraged to visit their closest SASSA office or pay-point
Arrangements were made to pay unregistered beneficiaries through their old cards

21. Phase 2 Phase 2: From 01 April – May 2012
Phase 2 commenced on the 01 April until end of May 2012.
Payments of all beneficiaries and swapping of old cards for cash beneficiaries
During this phase, all beneficiaries will receive their payments at the places where they normally receive their payments.
Cash Beneficiaries will continue at their designated pay-points . More than 96% of the cash beneficiaries were paid by the 20 April
Banked beneficiaries will receive all their payments in their bank accounts and they will be able to make withdrawals at banks, or ATMs or point of sale. 99% of banked beneficiaries have been paid already.

22. Phase 3 Phase 3: 01 June to 31 December 2012
Full enrolment of all existing beneficiaries, including banked beneficiaries and children
SASSA will conduct home visits for beneficiaries over 75 years of age and bedridden beneficiaries and those beneficiaries who are in institutions
All beneficiaries will be issued with SASSA branded smart card that is endorsed by Mastercard.

23. Grants Administration: Annual Targets
Implementation of file management by ensuring that all files that needs to transferred are transferred, inactive files destroyed, missing files resolved and filing of loose and critical correspondence
of beneficiary records corrected for identity numbers by beneficiary of these records will be corrected in 2012/13
Internal Reconsiderations and Appeals
All applications for internal reconsideration will be finalised within 90 days
All tribunal decisions will be implemented

24. Grants Administration: Performance Indicators and Annual Targets for 2012/13 – 2014/15 cont…
Community outreach programme
40 poverty wards will be targeted annually through ICROP
people will be assisted to access social assistance services annually. Services provided will include new applications, enquiries , special requests and reviews
Phelophepa
34 identified railway stations targeted in 4 regions in 2012 where all special requests and enquiries will be addressed
Customer Care Charter standards implemented:
All special requests, enquiries and complaints received through this programme will be addressed within 7 working days.

25. Information and Comm. Technology
Strategic
Objective
To achieve a fully integrated and automated social assistance service;
Develop a fully secured, integrated and automated end- to-end system by 2014/ % of the systems development will be completed in 2012/13.
In order to improve operational efficiency and the quality of ICT service delivery to our customers.
All grant officials and system users will be provided with workstations at points of service delivery and system users will be biometrically authenticated by end of 2012/13 to eliminate the use of password and fraud related activities; and
Grant beneficiary biometric system developed in 2012/2013.

26. Information and Comm. Technology
5 internal grant administration systems will be integrated
SOCPEN, MIS (National Registry, Eastern Cape, Free State) MIS National, IGAP, Livelink.
Phased in interface with other government systems
Real-time interface with Department of Home Affairs (HANIS), and NPR system in 2012/13; and
Real-time interface with South African Revenue Service (SARS), Department of Justice and Constitutional Development 2013/14.

27. Internal Audit and Risk Management
Strategic
Objective
To promote good governance in the administration of the Agency
Objective Statement
To provide independent assurance on the adequacy, effectiveness and efficiency of management implemented controls.
To facilitate and monitor the development and implementation of the risk management strategy.
To entrench a culture of integrity in the Agency.

28. Internal Audit and Risk Management
To provide independent assurance on the adequacy, effectiveness and efficiency of management implemented controls.
20 internal audit reviews conducted on high-risk areas; and
Number of Internal Audit monitoring reports produced - 30 Internal Audit monitoring reports produced.
To facilitate and monitor the development and implementation of the risk management strategy.
Strategic and operational risk register updated annually ; and
Percentage of identified fraud cases investigated.
To entrench a culture of integrity in the Agency.
50% of identified fraud cases and suspicious grants investigated and verified for validity; and
3 ethics interventions implemented.

29. Strategy and Business Development Strategic Objectives
Objective Statement
To provide strategic direction for the effective implementation of the social assistance programme.
Compliance with the planning framework;
Service delivery monitoring and consolidated evaluation reports produced quarterly;
Social grant projection reports produced (2 per annum);
Five institutional performance assessments reports produced (1 Annual and 4 quarterly performance reports); and
Periodic and thematic evaluation and research reports.

30. Strategy and Business Development Strategic Objectives
Strategy on future payment model for SASSA developed.
Advisory Committee established towards end of 2012;
Consultative document and Research report produced in 2012; and
Design options developed and piloted 2013 and 2014.
Business Process Reengineering (BPR)
Review and restructuring for finance branch completed in 2012; and
Plans for re-engineering of the Grant administration will commence in 2012 and actual implementation will be effected in

31. Corporate Services Objectives
Strategic
Objective
To ensure that the Agency is optimally capacitated for optimal service delivery
Objective Statement
To promote and ensure sound human capital management systems.
Provide efficient and effective legal services to the Agency
To provide facilities and auxiliary support services that enable the Agency to function optimally.
Security: To promote security risk management practices in the Agency.
Communication: To market, inform and educate internal and external stakeholders on the social assistance programme.
To provide effective, efficient and economical financial management service.

32. Human Capital Management
Filling of critical posts, in particular level 5-8 posts at the regions to ensure that there is sufficient and appropriately skilled human capital for improved and more efficient service delivery;
Recruitment of EPWP workers to support current staffing gaps;
HIV and AIDS support programmes will be implemented in all Regions and Head Office; and
Conduct review of the performance management system.

33. Facilities Improvement of local offices and pay-points Registries
216 local offices will be upgraded over a period of 3 years (i.e., 72 offices per annum); and
928 pay-points will be upgrading over 3 years (400 in year 1 and 2 and 128 in the last year.
Registries
Ensure that MIS Registries complying with targeted elements of the National Archives Act and directives; and
Disposal guidelines for SASSA records approved in 2012/13.

34. Communication and Marketing Strategic Objective
Implement the Integrated Marketing and Communication Strategy.
Ensure all existing are informed about development relating to their grants payments, re-registration and reviews; and
Eligible beneficiaries are informed about SASSA benefits and eligibility criteria.
Focused and targeted communication services to support the re-registration process.

35. Finance Objectives and targets
Compliance with financial prescripts.
Estimates on National Expenditure document developed in accordance with National Treasury’s budget cycle;
All eligible suppliers paid within 30 days;
Expenditure monitoring including submission on 12 in- year monitoring reports to National Treasury and DSD; and
Ensuring compliance to procurement processes.

36. Finance Objectives and targets (cont…)
Allocation of resources to strategic priorities;
Unqualified audit opinion achieved for all the years;
Increase the percentage of social assistance debts recovered; and
50% of staff debts recovered as per the terms of AoDs.

37. Finance Plan

38. Overview of the 2012/13 budget and medium-term expenditure framework estimates
Medium Term Expenditure Estimates

39. Overview of the 2012/13 budget
The Agency receives its administration budget transfers from the Department of Social Development and the transfers in respect of the grants disbursed to grant beneficiaries is managed through the Department.
Total allocation for Administration starts at R6,2bn in 2012/13 and increases to R6,8bn in 2014/14.
The bulk of the administration budget goes towards payments to cash contractors who are contracted to the Agency to disburse grant monies to beneficiaries.
The second largest allocation on the budget is on personnel expenditure while the remaining balance caters for other operational expenses, which include various contractual obligations.

40. Budgeted key priorities/cost drivers
Compensation of Employees
- The budget allocation for CoE caters for current posts, and critical additional posts (In particular level 5-8 posts at the regions) to ensure the recruitment of appropriately skilled for more efficient service delivery.
Cash Payment Contractors’ fees
- Awarded a new 5 year contract to service provider Cash Paymaster Services, which caps the cost per grant at R16.44 will assist in realising savings on this expenditure item.
Grants Process Automation
A specific ring-fenced allocation has been made available for the automation of the grant business process.

41. Budgeted key priorities/cost drivers
Media Campaigns
Funding of dedicated campaigns to support the re-registration process.
Improvement of local offices and pay point infrastructure
The Agency strives to ensure that the conditions under which our grant beneficiaries are serviced are humane. Specific allocation has been made available for the upgrade of local offices and the improvement of infrastructure at the pay points.
Grant Fraud Investigations
As part of combating fraud within our system the Agency will work in close collaboration with the law enforcement agencies. A specific allocation has been made for this purpose.
Bulk Notification
In terms of the law, the Agency must notify grant applicants of the outcome of their application by registered mail. Also grant beneficiaries must be notified of the status. In this regard registered mail is used. The budget allocation caters for this function.

42. Budgeted key priorities/cost drivers
Medical assessment fees
This allocation caters for the payment towards contracted medical doctors who perform medical assessments on disability grant applicants on behalf of SASSA.
ICT infrastructure deployment
- As SASSA acquires new office accommodation, there is a need to install the necessary ICT connectivity to these premises. There is a specific allocation for this purpose.
Various contracts necessary for the running of the Agency
- The budget allocation in this regard caters for the leasing of office accommodation including all the other related costs such as security services, cleaning service charges and maintenance and repairs. The allocation also includes the leasing of motor vehicles from the government garage, which forms part of the Agency’s fleet strategy. Furthermore, there are Information Technology related contracts such as contracts for the VPN connectivity, SITA contracts (for the SOCPEN) etc.

43. Overview of the 2012/13 budget and medium-term expenditure framework estimates

44. Recommendations
It is recommended that the Select Committee on Social Services:
Note SASSA’s plans and priorities; and
Support the Agency’s
Strategic Plan (2012/13 – 2016/17);
Annual Performance Plan (2011/12 – 2013/14); and
MTEF Budget for 2011/12 to 2013/14.

45. THE END