1. 1 PRESENTATION TO PORTFOLIO COMMITTEE ON SOCIAL DEVELOPMENT Quarterly Financial & Performance Reports 10 September 2014

2. Presentation Outline Background Performance Report – Q1 Financial Report – Q1 Challenges Recommendations 2

3. Purpose The purpose of the presentation is to: –Brief the Portfolio Committee on SASSA first quarter performance and financial report 3

4. BACKGROUND 4

5. VISION “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! 5

6. STRATEGIC OUTCOME ORIENTED GOAL OF SASSA STRATEGIC OUTCOME ORIENTED GOAL Expand access to social assistance and creating a platform for future payment of social security benefits. GOAL STATEMENT To render social assistance to eligible beneficiaries 6

7. Key priorities for 2014/15 - 2018/19 The primary focus of SASSA will be on: –Reducing income poverty by providing social assistance to eligible individuals –Improving service delivery –Improving internal efficiency –Institutionalising social grants payment system within SASSA 7

8. Programme Performance Report April – June 2014 8

9. Implementation of the Social Assistance Programme ObjectiveTo provide social assistance to qualifying/eligible beneficiaries Planned Targets (annual) Target is to reach at least 1.1m new beneficiaries p.a Increase the number of grants in payment from 15 932 473 to 16 052 000 by end of 2014/15 AchievedA total of 327 552 new applications were processed Attrition numbers: 302 460 came out of the system mainly due to children who have come of age and death At the end of the first quarter there were 16,191,729 social grants in payment, an increase of 259,256 social grants or 1.6% from the preceding quarter. Grant-in-Aid had the highest percentage increase at 6.8%, followed by Foster Child Grant at 4.9%. 9

10. Table of the Take Up of Social Grants 10

11. Growth of Social Grants Per Region (cont…) 11 Province Beginning of April End of April End of May End of June Difference / Change Growth in % EC2,620,2842,631,3772,655,4202,660,47140,1871.5 FS934,766937,153943,923944,1719,4051.0 GP2,184,1932,196,7092,219,8422,226,60842,4151.9 KZN3,761,6623,778,3693,812,8203,817,40455,7421.5 LP2,222,7302,232,3152,253,1142,256,78134,0511.5 MP1,325,2171,331,6511,343,6121,347,36022,1431.7 NW1,120,0341,124,7841,135,2081,138,45218,4181.6 NC424,815426,977430,350431,4696,6541.6 WC1,338,7721,348,3501,362,6951,369,01330,2412.3 Total15,932,47316,007,68516,156,98416,191,729259,2561.6

12. Number and Percentage of Social Grants per Region and Grant Type (cont…) 12 RegionOAG WV GDGGIACDGFCGCSGTotal % of total EC520,75156180,73813,07518,458120,4481,806,9452,660,47116.43% FS178,347678,4421,5956,20141,692637,888944,1715.83% GP458,19998112,4452,35615,68258,1081,579,7202,226,60813.75% KZN618,05050295,22132,10635,759131,8922,704,3263,817,40423.58% LP424,3272792,17114,00712,71361,8701,651,6662,256,78113.94% MP219,5581877,8773,9349,01435,8091,001,1501,347,3608.32% NW227,1871385,8455,6218,66942,535768,5821,138,4527.03% NC77,5821148,8355,4654,68914,868280,019431,4692.66% WC279,141112150,63010,50711,30729,928887,3881,369,0138.46% Total3,003,1423911,122,20488,666122,492537,15011,317,684 16,191,72 9 100.00 % % total18.55%0.%6.93%0.55%0.76%3.32%69.90%100.00%

13. Implementation of the Social Assistance Programme ObjectiveImprove the management of Social Relief of Distress by ensuring qualifying beneficiaries are not disadvantaged. Planned Targets (annual) 150 000 SRD applications will be processed per annum over the next three year Achieved141 402 applications processed Cash – 5753 food parcels – 62 310 Vouchers – 73 339 Total Expenditure R130 256 461 13

14. Implementation of the Social Assistance Programme Objective Reduction of inclusion and exclusion errors in the social assistance programme Current Status CSG Take-up rates for infants remained stagnant between 2008-11, at less than 50%. Planned Activities Increase CSG take up rates to 70% over the MTEF through active mobilisation AchievedTotal number of children (0-1) in payment stands at 489 680. This represents an increase of 30 853 (0.6% growth) from April to June 2014. 14

15. Service Delivery Improvement Objective Improving conditions under which beneficiaries are served Planned Targets (annual) 420 ICROP/ Mikondzo interventions Progressively reduce the turn around time for processing of grants to an average of 10 days by 2016 Complete the upgrading of remaining local offices and acquisition of new offices in areas of high need. AchievedICROP strategy was approved for implementation. Out of 104 wards targeted 170 wards had access to social assistance through ICROP Turn around time for processing of grant applications is on average 21 days. 91 % of applications were processed within 21 days, most regions achieved between 90% and 97 % Most offices commenced with the process for improvement of targeted offices and they will be completed in the coming quarters. 15

16. No. of ICROP interventions per province RegionWards E.C.15 F.S.18 G.P6 KZN25 LIMP4 MPU8 N.C.31 N.W.9 W.C.54 TOTAL170 16

17. Improved Administration: Automation ObjectiveEstablishing a credible National payment database through re-registration programme. Planned Targets (annual) Improvement of ICT Infrastructure Biometric Authentication of users Cleaning of re-registration data AchievedConnectivity to business systems in all SASSA Local offices has improved CSIR has been appointed to facilitate phase 2 of re- registration data clean-up 17

18. Improved Administration: HCM ObjectiveEffective and efficient administration (Human Resource) Achieved100 % of identified critical posts were filled (94 permanent posts and 34 contract posts were filled during this quarter) 1 HCM policy was reviewed (Bereavement policy) 107 of labour relations cases were reported and are all in the process of investigation 18

19. Future Payment System ObjectiveImprovement in the Payment of Social Grants Planned Targets (annual) Implementation of the Payment Tender Planning for SASSA is to take total responsibility for the payment of social grants in 2017/19. AchievedMandate for implementation of the tender process has been approved. Advertisement will take place in the second quarter. The Ministerial Advisory Committee drafted preliminary mid-year report which is starting to reflect on the direction the Agency should take for the future 19

20. Improved Governance ObjectiveTo promote good governance and accountability Planned Targets (annual) Reduction of audit findings - Unqualified Audit Reduction of Fraud, theft and corruption Reduction in litigations AchievedUnqualified audit report for 2013/14 financial year Fraud Management: A total of 242 cases were reported in this quarter and all were investigated. IA: 3 Internal audit reviews were done on high risk areas Legal: 240 letters of demand were received and responded to 20

21. Summary of Performance of the First Quarter of 2014/15 compared to First Quarter Last FY 21 SASSA had a total number of 19 APP targets planned for the first quarter. 65 % of the quarterly targets were fully achieved and 3% were partially achieved

22. Financial Performance Report 22

23. 23 Overall expenditure per economic classification

24. Overall expenditure per economic classification (cont…) 24

25. Overall per key cost drivers 25

26. Narrative on spending trends Compensation of employees Expenditure is 2% below the projected expenditure due to the funded posts that were not filled yet at the regions and head office. The funded vacant posts are at various stages of being filled and it is projected that as the financial year progresses the majority of the posts would have been filled and this will increase expenditure. Goods and Services Communication: –The majority of the budget is on postage for notifications for reviews and communication to beneficiaries. –Expenditure on these two big ticket items within communication is expected to increase as the financial year progresses. The bulk of the money will be on community based interventions 26

27. Narrative on spending trend (cont..) Goods and Services: Computer Services –The majority of the budget is for the payments to SITA in respect of mainframe-time and the maintenance of the SOCPEN system. –Expenditure is incurred once services have been rendered. Medical Assessments Fees –Expenditure is influenced by the number of medical assessments performed and thus the number of assessments performed were lower during the first quarter. 27

28. Narrative on spending trend cont.. Goods and Services: Maintenance and Repairs –The majority of the budget is for local office and pay point improvement projects. There were orders to the value of R4,944 million placed as at end of June 2014. Travel and Subsistence –Expenditure will be influenced by the National Treasury’s austerity measures which aims to minimise the level of expenditure on travel and other items. 28

29. Challenges The delays in the finalisation of MOU with CSIR impacted on achievement of 2 objectives: –Biometric data clean-up; and –management of re-registration exceptions The finalisation of the tender for authentication of Biometric users has been delayed Improvement of local offices has been delayed and this impacted on other related activities such as branding and purchase of equipment 29

30. Recommendations It is recommended that the Portfolio Committee  note and support SASSA’s the quarterly financial and programme performance reports for the period of April – June 2014 30

31. Thank you 31