1. South African Social Security Agency Strategic Plan 2006/7- 2008/9 Presentation to the Portfolio Committee on Social Development 15 March 2006

2. OUTLINE OF PRESENTATION The Presentation covers the following Introduction and background Progress on the Establishment and Operationalisation of the Agency Strategic Plan for 2006/07 to 2008/09, particularly Key Priorities and Objectives Different Programmes, and Medium Term Expenditure Framework for the period

3. Institution building – Phased Approach The Agency establishment is a phased approach comprising: Preparation Phase (April 2005 – April 2006), Consolidation Phase (April 2006 – April 2007), Standardisation Phase (April 2007 onwards), Optimisation Phase (April 2008 onwards)

4. Preparation Phase Key elements within preparation phase: Listing of the Agency as Schedule 3A Public Entity Operationalisation of the Agency Head Office include: Infrastructure set-up; Appointment of critical personnel; Finalisation and approval of policies, processes, procedures and systems; Transfer of national DoSD grants administration personnel and financing responsibilities to the Agency. Establishment of Regional offices include: Establishing systems; Ring-fencing and migration of staff; Regional Infrastructure.

5. Consolidation Phase Key elements within consolidation phase: Finalising the establishment of the regional structures; Transfer and integration of the social assistance administration function into the Agency on a phased approach.

6. Progress on Establishment and Operationalisation The following capacities are in place: Head Office: Infrastructure set-up Appointment of key and critical personnel Implementation of appropriate policies, processes, procedures and systems

7. Progress on Establishment and Operationalising of Agency Regional Office level : Systematic separation and integration of social assistance administration into Regional structure Regional Office infrastructure establishment Ring- fencing of personnel and assets complete Appointment of additional personnel Implementation of appropriate information and Technology systems in certain regions

8. Human Capital Management Staff: Head Office executive management team in place CEO Performance Agreement and Shareholder Compact signed with the Minister Human Resource Policies and Processes are approved and are implemented

9. Human Capital Management Staff: Job evaluation of all posts are completed Critical posts are being filled at Head Office and in the Regions SASSA Persal system implemented

10. Finance Financial management and accounting systems: Financial Policies, procedures and processes in place Accounting practice and guidelines in place

11. Finance Basic Accounting System in place Developing in-year accounting warning system

12. Information and Communications Technology standards, processes and delegations are being implemented Information and Communications Technology strategy is being implemented Information and Communications Technology Infrastructure is being rolled out in the Regions Information and Communications Technology

13. Strategic Plan 2006/7 – 2008/9

14. Vision To provide world-class social security services

15. Mission 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;

16. Mission Paying the right grant amount, to the right person, at the right time. Delivering innovative, cost effective and efficient services to individuals, their families and community groups.

17. Core Values Core Values The following values inform our work: Promotion and protection of human dignity Confidentiality Integrity Fairness Transparency Equity

18. Customer Service Ethos Informed by our core values SASSA’s services will be geared towards treating beneficiaries with respect and dignity.

19. Theme of SASSA Paying the right grant amount, to the right person, at the right time.

20. Legislation informing the mandate of SASSA South African Social Security Agency Act, 2004 Social Assistance Act, 2004

21. Key Strategic Priorities Key Priorities for the Agency are: Improving service delivery quality Enhancing grant process integrity Organizational capacity

22. Key Strategic Priorities Improving financial management and administration Management of Payment Contractors Minimization of fraud

23. Key Strategic Objectives Strategic Objective 1: Ensure a High Performance Institution Strategic Objective 2: Service Delivery Improvement Strategic Objective 3: Improvement of Operational Excellence Strategic Objective 4: Good Governance

24. Create/Establish a High Performance Institution Implement a Business Continuity Transition Plan Establishing offices Staffing: recruitment, migration and change management Design and implement Information Communication Technology systems/enablers established and in place Ensure a High Performance Institution

25. Ensure a High Performance Institution (cont.) Implement Organisational Structure Finalise and implement Policies, processes & delegations Review contracts and establish new contract management frameworks

26. 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 Ensure a High Performance Institution (cont.)

27. Consolidate a high performance institution Develop consolidation processes with strategic review Alignment with other outputs (consolidate through reviews – evaluate, consolidate position and re-align)

28. Ensure a High Performance Institution Ensure Agency compliance with legislative mandates Development of uniform training programmes that address compliance Implement Training Programme Setting up structures and mechanisms based on compliance requirements

29. Service Delivery Improvement Service Delivery Improvement Improve administration of social security:- Implement standardised and coherent norms and standards Design and implement strategy for back office integration, including Enterprise Resource Planning system Roll-out priority Information Communication Technology systems

30. Service Delivery Improvement Develop & implement alternative service delivery models Enhance data improvement quality programme Development and implement forecasting models (micro and macro)

31. Service Delivery Improvement Improve delivery of social security Implement norms and standards Implement Service Delivery Model (pilot) Design and implement standardise contracts and guidelines

32. Service Delivery Improvement Optimise (incrementally) infrastructure to improve access to social assistance Develop customer relationship strategy Introduce call centres Develop customer charter for beneficiaries

33. Improvement of Operational Excellence Build Capacity in the Agency Recruitment, appointment and training of staff Design and implement appropriate systems Implementation of Policies and Procedures Develop and implement systems to benchmark and measure performance

34. Good Governance Alignment of policies, processes and procedures with relevant legislation Implement a communication strategy Implement a complaints mechanism Implement a fraud prevention strategy Implement structures, systems and procedures in line with legislation, King Report on Corporate Governance and state owned entity protocols

35. Good Governance Implement a code of conduct and ethics Strengthening partnerships and collaborations Maintain risk management plan

36. Programme 1: Administration Purpose: Overall management of the Agency Key Measurable Objectives: Regular reports to principal stakeholders Quality internal audit reports on risk management and control Quality internal audit reports on governance strategy Implementation of fraud prevention strategy

37. Programme 2: Corporate Services Purpose: Overall management of human capital, delivery of auxiliary services and the provision of legal services Key Measurable Objectives: Human Resource Strategy and Policies Implementation of new Performance Management System Capacity building based on HR development strategy

38. Programme 2: Corporate Services Key Measurable Objectives: Effective Facilities Management, strategy and systems Transport and Fleet Management, strategy and systems Provision of secure office space and work environment Legal and Legislative Services

39. Programme 3: Communications, Marketing and Change Management Purpose: Provision of advice on marketing and communication Media liaison and public relations Key Measurable Objectives: Provide of communications support to the Agency and the CEO Establish and manage a shared service centre for beneficiaries

40. Programme 3: Communications, Marketing and Change Management Key Measurable Objectives Creating awareness of the SASSA brand Maintain strong relationships with internal and external stakeholders (civil society, parliament, Regions) Manage the change management process

41. Programme 4: Finance and Supply Chain Management Purpose: The provision of Financial Management Services Key Measurable Objectives Finalise the transfers of budgets, assets and liabilities Financial accounting policies and systems and delegation of Authority Budget structure and SCOA for transfers and operations Funds flow model finalised Monitor and review contracts for payment contractors

42. Programme 4: Finance and Supply Chain Management Key Measurable Objectives: Implement policies for suppliers of goods and services Develop the outsourced model for non-core services Develop Risk Management plan applicable to finance

43. Programme 5: Information Communication Technology Purpose : The provision of Information and Communications Technology Services Key Measurable Objectives Implement ERP systems Automate Grants processes (ECM) Implement data warehouse

44. Programme 5: Information Communication Technology Key Measurable Objectives Socpen Enhancement Implement a CRM solution Implementation of e-Government and portal services Implementation of a Business Intelligence (BI) solution

45. Programme 5: Information Communication Technology Key Measurable Objectives: Provide and manage of information communication and technology (ICT) resources

46. Programme 5: Information Communication Technology Key Measurable Objectives Implementation of interim ERP system (BAS, PERSAL, LOGIS) Provisioning of enterprise wide area network services User support and service management Acquisition of hardware, software and management of contracts and agreements

47. Programme 5: Information Technology Key Measurable Objectives Develop and implement a Governance Plan Develop and Implementation of the Master Information Systems Plan Development of enterprise information technology architecture, principles and standards Develop and implement information technology organisational structure Implement information technology Security and Risk Management Plan

48. Programme 6: Customer Services Purpose Grant administration that improves delivery of social security services Key Measurable Objectives Improve service delivery to restore the dignity of beneficiaries Design and introduce standardised contracts

49. Programme 6: Customer Services Key Measurable Objectives Improve access to social assistance through the optimisation of infrastructure Implement a customer relationship strategy Plan and introduce appropriately located call centres Develop customer charter for beneficiaries Service delivery integrity Improvement of data quality

50. Programme 7: Strategy and Business Development Purpose: To develop innovative strategies and mechanisms to improve service delivery Key Measurable Objectives Integrate of social assistance function at national and regional levels. Facilitate learning and knowledge management in support of operations

51. Programme 7: Strategy and Business Development Key Measurable Objectives Manage, implement & monitor institutional operations and projects Implement research and development projects on specified grants administration and service delivery areas

52. Programme 7: Strategy and Business Integration Key Measurable Objectives Manage new and existing partnerships to enhance service delivery. Design and develop models (macro/micro economic and simulation) based on social assistance policies

53. Programme 7: Strategy and Business Integration Key Measurable Objectives Accurate costing of social security policies Integrated strategic and operational plans guide work of the Agency. Development of effective monitoring and evaluation processes within SASSA

54. Programme 7: Strategy and Business Integration Key Measurable Objectives Evaluation of social security impact. Provide strategic support through monitoring and evaluation. Systemic monitoring and evaluation ensures strategic coherence Exemplary Corporate Governance codes procedures and ethics guide the work of the agency.

55. 2006 MTEF Social Assistance Over 2006 Medium Term Expenditure Framework Social Assistance System is financed through Social Assistance Transfers Social Assistance Administration Social Assistance Transfers, that is, social grants are funded via the national Department of Social Development Payments of social grants are generated through the Social Pension System (SOCPEN) Agency will generate a voucher/payment extraction for funds to be transferred to eligible beneficiaries

56. 2006 MTEF Social Assistance From 1 April 2006 Social Assistance Administration is funded through a transfer to the Agency via national Department of Social Development Through this financing mechanism, SASSA, is fully responsible and accountable for Social Assistance Administration 2006 Strategic Plan shows that the Social Assistance Administration funds comprise: SASSA Establishment and Operational Funds Social Assistance Administration Grants Administration Integrity

57. 2006 MTEF Social Assistance Social Assistance Administration grows from R3,6billion in 2006/07 to R4,1billion in 2008/09 SASSA Establishment and Operationalisation fund grows from R135m in 2006/07 to R167million in 2008/09 Grants Administration Integrity increases from R96million in 2006/07 to R158million in 2008/09

58. 2006 MTEF Social Assistance Social Assistance Administration funds mainly covers expenditures in current provinces – regions on: Compensation of Employees Goods and Services such as Payment Contractors (Handling Fees, which is budgeted slightly above R2billion per annum) Transfers and subsidies Payments for Capital Assets such as Infrastructure (Rental and maintenance for buildings, etc)

59. Projected Expenditure - Regions

60. Projected Expenditure - Branches

61. CONCLUSION This presentation has covered: Progress on the Establishment & Operationalisation of the Head and Regional Offices Progress Report on Human Capital Development, Information Communication Technology, Service Delivery and Financial Administration and Systems Strategic Plan for 2006/07 to 2008/09, particularly Key Priorities and Objectives Different Programmes and Projects to be implemented, and the Medium Term Expenditure Framework

62. THANK YOU THANK YOU