Presentation on SASSA’s
Strategic Plan for the fiscal Years 2012/132016/17 and Annual Performance Plan
Outline of the
presentation
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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
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Purpose of the
presentation
• To present to the Select Committee on Social
Services:
– SASSA’s Strategic Plan for the financial Years
2012/13-2016/17; and
– Annual Performance Plan 2012/13.
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Strategic
Overview
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.
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Values
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Social cohesion;
Transparency;
Equity;
Integrity;
Confidentiality; and
Customer Care-centered approach.
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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
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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
10 927 731
2 750 857
1 198 131
536 747
114 993
753
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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.
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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.
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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.
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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.
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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.
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Key priorities for 2012/13 - 2016/17
• To deliver quality social security services by
focusing on the following:
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Excellent customer care;
The automation of systems;
Improving organisational capacity;
Promoting good governance; and
Re-registration of current beneficiaries.
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Objectives and Targets
BRANCHES
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Grants Administration
Strategic To improve the effectiveness and efficiency of the
Objective administration of the social assistance
programme.
Objective • To ensure that eligible beneficiaries receive
Statement
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
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programme.
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)
Projected total number of grants in
payment
No. of old age grants in payment
No. of war veteran’s grants in payment
No. of disability grants in payment
No. of grants-in-aid in payment
No. of foster child grants in payment
No. of care dependency grants in
payment
No. of child support grants in payment
Medium-term target
2012/13
2013/14
2014/15
16 069 007
16 489 577
16 756 905
2 772 745
706
1 192 444
65 724
671 307
2 835 018
621
1 195 629
70 325
768 645
2 881 146
551
1 195 966
75 247
874 001
131 246
140 965
146 658
11 300 559
11 548 698
11 658 553
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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
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Grants Administration:
Annual Targets
• Improvement in the payment processes
– The Agency will re-register all beneficiaries
capturing biometrics and update basic data,
by
– Beneficiaries will be issued with SASSA smart card that
can operate in formal banking environment and
designated SASSA cash pay-points.
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Implementation of new payment
solution
Key focal areas:
– Re-registration
– Uninterrupted Payment services
– Communication with beneficiaries and key stakeholders
– Managing litigation
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Implementation phases Phase 1
Phase 1: From 01 March to March 31 2012
•Phase 1 – Preparatory processes
–
it involved the enrolment of all new applications in all provinces; and re-registration of Sekulula
beneficiaries
A.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.
B.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 820 330 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
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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
2012.
– 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.
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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.
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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
• 26 000 of beneficiary records corrected for identity numbers by 2014.
16 000 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
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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
– 60 000 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.
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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 2014/15. 40% 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.
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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.
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Internal Audit and
Risk Management
Strategic
Objective
To promote good governance in the
administration of the Agency
Objective To provide independent assurance on the
Statement 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.
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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
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• 3 ethics interventions implemented.
Strategy and Business Development Strategic Objectives
Objective
To provide strategic direction for the effective
Statement
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.
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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
2013.
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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.
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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.
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Facilities
• Improvement of local offices and pay-points
– 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
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2012/13.
Communication and
Marketing Strategic Objective
• Implement the Integrated
Communication Strategy.
Marketing
and
– 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.
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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 inyear monitoring reports to National Treasury and DSD;
and
– Ensuring compliance to procurement processes.
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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.
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Finance Plan
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Overview of the 2012/13 budget and medium-term
expenditure framework estimates
Medium Term Expenditure Estimates
Revised
Audited outcome
R thousand
Ex ecutiv e Management
2008/09
2009/10
estimate
2010/11
2011/12
Medium-term estimate
2012/13
2013/14
2014/15
46 901
235 020
257 438
193 557
203 235
213 396
224 066
618 214
739 288
699 370
941 442
989 404
1 038 917
1 090 862
3 096 964
2 770 030
2 539 350
2 941 084
2 771 309
2 910 294
3 058 262
443 102
472 505
347 396
425 195
446 455
468 778
492 217
1 151 169
1 140 345
1 224 458
1 538 883
1 671 160
1 775 160
1 879 788
Strategy & Busines Dev elopment
43 257
21 453
22 468
45 485
47 759
50 147
52 653
Internal Audit
81 130
86 818
85 840
67 575
70 948
74 495
78 220
5 480 737
5 465 459
5 176 320
6 153 221
6 200 270
6 531 188
6 876 069
Corporate Serv ices
Finance
Information Technology
Grants Administration and Customer Serv ices
Total expense
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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.
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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.
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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.
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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.
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Overview of the 2012/13 budget and mediumterm expenditure framework estimates
Revised
Statement of financial performance
estimate
Audited outcome
R thousand
Revenue
Tax revenue
2008/09
2009/10
2010/11
2011/12
Medium-term estimate
2012/13
2013/14
2014/15
–
–
–
–
–
–
–
11 053
13 260
7 669
9 564
1 116
1 226
1 350
–
–
712
1 490
651
715
787
Admin fees
–
–
712
705
649
713
785
Sales by market establishments
–
–
–
3
2
2
2
Other sales
–
–
–
782
–
–
–
11 053
13 260
6 957
8 074
465
511
563
Transfers received
4 630 292
5 168 896
5 631 387
6 143 657
6 200 270
6 531 188
6 875 069
Total revenue
4 641 345
5 182 156
5 639 056
6 153 221
6 201 386
6 532 414
6 876 419
Current expense
5 326 401
5 452 922
5 157 030
6 133 710
6 180 899
6 510 800
6 853 724
Compensation of employees
1 396 847
1 563 502
1 623 468
1 729 142
2 007 731
2 024 861
2 125 146
Goods and services
3 838 169
3 835 733
3 472 322
4 345 178
4 109 917
4 419 587
4 658 908
Depreciation
48 020
51 535
59 441
57 501
61 267
64 270
67 483
Interest, dividends and rent on land
43 365
2 152
1 799
1 889
1 983
2 083
2 187
Non-tax revenue
Sale of goods and services other than capital assets
of which:
Other non-tax revenue
Expenses
Transfers and subsidies
Total expenses
154 336
12 537
19 290
19 511
20 487
21 614
22 694
5 480 737
5 465 459
5 176 320
6 153 221
6 201 386
6 532 414
6 876 418
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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.
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