1. Social Security Agency Presentation to Portfolio Committee 19 October 2005

2. Outline Of Presentation Background The Journey Map SASSA STATE OF READINESS Key Milestones Legislation Staff Issues Leadership Funds Processes – Operations ICT & Infrastructure Office Facilities Stakeholders & Beneficiaries PROGRESS REPORT: Governance Framework Key Strategic Priorities Key Strategic Themes Conclusion

3. Background Providing social assistance grants is a key government poverty alleviation program, ensuring income support to over 9.8 million vulnerable individuals. The Agency is a Schedule 3(a) public entity responsible for administration and payment of social grants.

4. Background - Vision To ensure a better quality of life for all South Africans by providing world-class social security services

5. Background - Mission To administer quality social security services, cost effectively and timeously using appropriate best practices by: Developing and implementing policies, programmes and procedures for an effective and efficient social grants administration system; Paying the right grant amount, to the right person, at the right time and at the most convenient place; Delivering innovative, cost effective and efficient services to individuals, their families and community groups.

6. Background - Core Values Promotion and protection of human dignity Confidentiality Integrity Fairness Transparency Equitability

7. The Journey Map Three distinct phases constitute the journey map: Initial phase: prior to April 2005 and was concluded with MOU signing and introduction of the conditional grants - completed Transitional Phase: started April 2005, ending April 2006. Involves making the Agency operational and prepare for function transfer Optimisation phase: Full operationalisation follows the transfer of the social grants function to the Agency; and, Implementing the new delivery model with radical improvements in the quality of delivery

8. The Journey Map Defined the Day One Readiness Framework Defined the minimum expected objectives to be achieved on DAY One of SASSA - 1 April 2006 Developed the Journey Map with key outputs and milestones to achieve on Day One Allocated the outputs and milestones to Workstreams Aligned work stream charters & plans to Journey Map Aligned status reporting process to Journey Map

9. SASSA State of Readiness Framework SASSA readiness will involve the consolidation and completed preparation of the business pillars: Staff / People Leadership Legislation Stakeholders & Beneficiaries ICT & Infrastructure Operations (Processes) Service Providers Funds SASSA Brand Office Facilities Finance Legal HR ICT Change & comms Service Delivery Facilities Regions Responsible for outputs & acceptance Provide inputs to responsible stream

10. ‘Day One Readiness’ is defined by the following ten objectives that need to be achieved by 1 April 2006: 1. The service provider contracts are agreed with NDoSD, ceded or renewed, and operations aligned 2. Critical regulations are promulgated and institutional arrangements are in place 3. Critical staff are appointed and trained 4. Key leadership team appointed & performance compacts signed 5. Funds for the establishment budget and 2006/2007 budget are transferred SASSA State of Readiness - Day One

11. 6. Critical processes & policies are implemented within the governance & reporting frameworks 7. Critical ICT systems & infrastructure for SASSA operational 8. SASSA employees are settled in offices by 28/02/2006 (whether interim, permanent or existing employees) 9. SASSA expectations are communicated to stakeholders, beneficiaries and employees 10. SASSA brand established and SASSA launched

12. Key Monthly Milestones SASSA ready Day 1 StateSeptOctNovDecJanFebMar Day 1 Service providers & contracts listed Contracting Strategy approved & planned Contracting renewal & MoU discussions started Contracts renewed or ceded or MoU’s signed Service provider operations aligned SASSA verified alignment of service provider operations Service providers briefed on future expectations Service Providers contracts agreed with NDoSD, ceded or renewed, and operations aligned Critical Regulations defined Institutional arrangements defined & planned Critical Regulation changes effected Critical Regulations promulgated Stakeholder consultations re regulations Institutional arrangements verified Shareholder agreements signed Critical regulations promulgated & Institutional Arrangements in place Organisation Structure approved Critical Staffing plan approved & positions advertised Critical staff screened & interviewed Staff transferred from provinces & disputes settled Critical staff appointed Staff trained Day 1 Staff Contingency planned Critical staff appointed and trained Skeleton executive positions advertised HO CXO’s appointed Top management appointments continued HO SM’s & regional CXO’s appointed Regional SM’s appointed Leadership Alignment workshops; SASSA Vision & Strategy Leadership performance contracts signed Skeleton leadership team appointed & performance compacts signed Establishment budget submitted Establishment funds transferred SASSA 2006/2007 budget approved; Re-allocation of HO funds Re-allocation of RO funds Registration for levies 2006/2007 budget loaded Trial balance signed off preparations Funds for Establishment budget & 2006/2007 Budget transferred Policies approved HO admin functions established; To-be Procedures drafted To-be procedures & reporting formats approved Detail process, policy & procedure implementation plans Functions separated; Governance & reporting frameworks in place; Policies actioned SDI strategy approved ; Final Readiness Verification Mission critical processes & policies actioned within Governance & reporting frameworks HO & RO system requirements approved & decisions finalised HO transversal systems, Socpen and Support in place Regional infrastructure & critical system migration started Regional transversal systems & Socpen systems ready Regional systems operational & infrastructure in place SASSA users trained ICT improvement recommendations submitted Critical ICT systems & infrastructure for SASSA operational Office premises identified & agreed Occupation dates agreed; Office migration strategy Detail migration plan; Preparation completed Office Migration started Office migration completed & staff settled Freeze on Office moves Freeze on office moves SASSA staff settled in offices by 28/02/06 (whether interim, permanent or existing) Stakeholder & beneficiary Engagement planned HO internal comm’s capacity & change network in place HO External comm’s capacity in place Migration objectives communicated Appointments communicated Readiness expectations communicated SASSA vision & strategy communicated SASSA expectations communicated to stakeholders, beneficiaries & staff Service provider RFT issued Service provider appointed Brand, PR/marketing strategy & plan, & Visual Identity Approved Corporate Identity established PR & marketing continued SASSA launched SASSA Brand Established & Launched Version 2.0 – Finalised Journey Map for Alignment of Regional and Work Stream Plans Last edit date: 10/10/2005

13. Legislation Statutory and Regulatory – NDoSD is in the process of finalising the specific regulations require Litigation – NDoSD is managing a process of evaluating the extent of and impact of litigation on social security Governance – the relevant governance frameworks, instruments structures and institutions required are being identified and established

14. Staff Issues H/O Organisation Structure has been finalised Most of the Regional Office Organisation Structures have been approved Job evaluations 90% complete Key staff positions on the organisation structures have been identified – if need be can still absorb support staff if transferred from the provincial departments

15. Staff Issues Recruitment of the key management and operational positions has commenced Existing NDoSD Employment Terms and Conditions will be used in the interim period Persal is being configured to enable new staff to be captured on the system Migration strategy for provincial staff to be finalised by NDoSD 11 November 2005 – major dependency

16. Leadership SASSA strategic plan developed awaiting finalisation Most H/O Executive posts filled Regional Executive Management Positions Advertised H/O and Regional Office General Management and Senior Management positions advertised

17. Funds Developed Funds Flow Proposal and ready for Treasury approval Developed proposed Budget Structure and Standard Chart of Accounts Decision to remain on BAS as the SASSA financial system until implementation of the ERP – implication need to remain on cash accounting Are applying for permission to remain on cash accounting for the next financial year Financial Ring Fencing of Assets and Liabilities not yet complete in all provinces

18. Funds Finalising the SASSA establishment budget and will submit to NDoSD by end of the month Process of refining the FY06/07 operating budget in line with the strategic plan In process of applying for listing as a Schedule 3A entity with National Treasury In process of finalising required registrations e.g. SARS, UIF, etc

19. Processes - Operations Delegations were finalised for all SASSA functions and submitted to Exco for approval Establishment of H/O support functions (Finance, IT & HR) to be fully operational by 31/10/05 Provinces completed the Operational Ringfencing Checklists and submitted to H/O The policies to roll out to regions were approved for Finance, HR & IT

20. ICT & Infrastructure Procedures to roll out to regions were drafted for Finance, other functions on track to be completed by 30/11/05 Critical systems (BAS, Persal, Logis) will be operational at H/O by 28/10/05 The provincial assessments were completed, and a another round to refine the assessment is planned A detail plan is being developed in order to assess the feasibility to migrate from Walker to BAS in North West province before Day 1

21. Office Facilities SASSA H/O refurbishment and IT infrastructure is in place In the process of finalising the agreements for regional offices

22. Stakeholders & Beneficiaries Stakeholder Communications: Stakeholder map developed Internal Communication plan created Stakeholder Engagement, Leadership Alignment and Communication Approach developed Communication Strategy presented at Guiding Coalition

23. Change Management Change Management: Change Agent network requirements confirmed and template developed for HOSS’s Need for change agents positioned with HOSS’s Change Management overview presented at Guiding Coalition Agenda for Change Agent mobilisation session developed and approved and will be distributed soon Received draft Terms of Reference for Change Management Tender Editorial process created with regard to the development, printing and distribution of the “SASSA Update”

24. Governance Framework In terms of the governance arrangements, progress includes: The Agency Act and Social Assistance Act will be in force by March 2006 MOU governs the transitional period, but a Business Partnership Agreement was drafted for post April 2006 Reporting framework in terms of Agency Act and the relevant PFMA sections has been finalised National Treasury An Advisory Panel was established with members from the public and private sector and international experts to advise the Agency A Panel of Ministers and Director’s General has been established National Department in the process of rolling out structures and staff for oversight responsibility

25. Key Strategic Priorities Key Performance Areas are: Service delivery quality Grant process integrity Financial Management Management of Payment Contractors Minimization of fraud Organizational capacity

26. Key Strategic Themes Ensure a High Performance Institution Service Delivery Improvement Good Governance Building Human Capital Sound Financial Management

27. Create/Establish a High Performance Institution Business Continuity Transition Plan Establish offices Staffing: recruitment, migration and change management ICT systems/enablers established and in place Organisational Structure implemented Policies, processes, delegations finalised Contracts reviewed, ceded and new contract management frameworks established Financial Administration in place and funds transferred Brand established Ensure a High Performance Institution Ensure a High Performance Institution

28. Develop and operationalise high performing, efficient & effective institution Implement and integrate a high performance system and culture Enhance all policies and procedures Implement Communications Strategy Governance Framework of co-operation Ensure a High Performance Institution

29. Consolidate a high performance institution Develop consolidation processes with strategic review Aligned with other outputs (consolidate through reviews – evaluate, consolidate position and re-align) Ensure Agency compliance with legislative mandates Development of uniform training programmes that address compliance Implement Training Programme Setting up structures (R&R) to match compliance

30. Service Delivery Improvement Service Delivery Improvement Improve administration of social security in a manner that meets stakeholder expectations Design and implement strategy for back office integration, including ERP system Roll-out priority ICT systems Complete revenue and debt management strategy and commence implementation Develop options for alternative service delivery models with other partners Commence data improvement quality programme Effective forecasting model

31. Service Delivery Improvement Improve delivery of social security in a manner that meets stakeholder expectations Implement norms and standards Piloting of Service Delivery Model and commence implementation Design and introduce standardise contracts and guidelines Optimise (incrementally) infrastructure to improve access to social assistance Develop customer relationship strategy Introduce call centres Develop customer charter for beneficiaries

32. Good Governance Good Governance To ensure a culture of integrity Align policies and procedures with relevant legislation Develop a communication strategy Develop a complaints mechanisms Appeal mechanism

33. Good Governance To ensure good corporate governance Develop fraud prevention strategy and commence implementation Implement structures, systems and procedures in line with legislation, King Report on Corporate Governance and state owned entity protocols Develop a code of conduct and ethics Strengthening partnership and collaborations Develop & maintain risk management plan

34. Building Human Capital Building Human Capital To recruit, develop, and retain skilled competent employees: Develop and Implement compliant HR Strategies, Policies and processes Implement job & competency profiles linked to new Service Delivery model Develop new Induction and Performance Management System aligned to Organisational Performance Model Design and implement an optimal HR planning, training and development strategy Develop and implement a Remuneration Strategy

35. Sound Financial Management Sound Financial Management Improve financial administration Complete revenue and debt management strategy Commence implementation of financial accounting policies and systems Delegation of Authority in place Budget structure and SCOA for transfers and operations

36. Programme 1: Corporate Services Management (Office of CEO) Overall Strategic Management of the Agency Regular reports to principal stakeholders Human Capital Management Human Resource Strategy and Policies Implement new Performance Management System Capacity building based on HR development strategy Office Services Provision of office services Finalised policies, processes, delegations for office services

37. Programme 1: Corporate Services Communication Develop a communication strategy, including mechanism for stakeholder redress and complaints Provincial Operational Support Development of effective Management Structure Contracts ceded, and new contract management frameworks established Develop Code Of Ethics Corporate Governance: Structures of corporate governance established Change Management: Change management implemented

38. Programme 2: Service Delivery Assurance Internal Audit Quality Internal Audit reports on risk management and control Quality Internal Audit reports on governance processes Risk and Fraud Management Promotion of good corporate governance Culture of integrity is promoted Complete fraud prevention strategy and commence implementation

39. Programme 3: Finance Financial Accounting and Administration Finalise the transfers of Budgets, Assets & Liabilities Financial capacity in place Financial accounting policies and systems Delegation of Authority Budgeting and Reporting Budget structure and SCOA for transfers and operations Funds flow model finalised

40. Programme 3: Finance Procurement and Contract management Monitor & review the management of the contracts for Service Delivery Payment Contractors Procurement policies implemented for suppliers of goods and services Contract management strategy and plans Develop the outsourced model for non-core services Risk Management Develop Risk Management plan applicable to Finance

41. Programme 4: Information Technology Systems Development Implement ERP systems Automate Grants processes (ECM) Implement Data warehouse Socpen Replacement Implement a CRM solution

42. Programme 4: Information Technology Information Management Implementation of e-Government and portal services Implementation of a Business Intelligence (BI) solution Provision, utilisation and management of information as a strategic resource that ensures realisation of the business objectives

43. Programme 4: Information Technology IT Operations Enhancement and Maintenance of SOCPEN and Provision of information technology solutions Implementation of interim ERP system (BAS, PERSAL, LOGIS) Maintenance of Network Hardware and software User support and service management Acquisition of hardware, software and management of contracts and agreements

44. Programme 4: Information Technology IT Governance and Architecture Develop governance plan Development and Implementation of the Master Information Systems Plan Development of Enterprise IT Architecture, principles and standards Develop and implement IT organizational structure Develop IT Security plan and Risk Management Plan (BCP)

45. Programme 5: Service Delivery Improve delivery of social security services in a manner that meets stakeholder expectations Improve service delivery to restore the dignity of beneficiaries Design and introduce standardised contracts Optimise infrastructure to improve access to social assistance Customer relationship strategy Introduce call centres Develop customer charter for beneficiaries

46. Programme 6: Strategy and Business Development Strategy formulation Institutional Policy and strategy formulation System of Reporting in place Corporate Governance Structures of corporate governance established Corporate Governance policy guidelines implemented

47. Programme 6: Strategy and Business Development Innovation and Change Management Research and development Monitoring and evaluation International and national liason Collaboration at international and national level for exchange of best practices and to explore new business opportunities

48. Conclusion Status Report to be presented to Cabinet & PCC in November 2005 Consultative process with Provinces has been initiated Agency is working on ensuring State of Readiness by 01 April 2006