SOUTH AFRICAN SOCIAL SECURITY SOUTH AFRICAN SOCIAL SECURITY AGENCYAGENCY

HALF YEAR PROGRESS REPORT HALF YEAR PROGRESS REPORT PRESENTATION TO THE PORTFOLIO COMMITTEEPRESENTATION TO THE PORTFOLIO COMMITTEE

8 November 2006

PURPOSE OF PRESENTATIONPURPOSE OF PRESENTATION

The presentation focus on the following:• Progress on social security agency priorities

over the MTEF period:– Establishment and operationalisation of the agency– Measures to improve service delivery

• Budget and spending trends• Conclusion

SASSA PRIORITIESSASSA PRIORITIES• Improving service delivery quality

– Improve turn around time for grants processing

– Development of a service delivery model– Implementation of priority norms and

standards– Development of effective forecasting model– Implement customer charter

SASSA PRIORITIESSASSA PRIORITIES

• Organizational capacity– Recruitment of staffs for the Agency– Implement HR systems and policies.– Establish change management

infrastructure– implement human capital management

development and training plans.

SASSA PRIORITIESSASSA PRIORITIES

• Improvement of payment services– Improve conditions at access points– Develop and implement an optimal

infrastructure plan• Enhancing grant process integrity

– Improve data quality– Standardize business processes

SASSA PRIORITIESSASSA PRIORITIES

• Improving financial management• Minimizing fraud

HALF YEAR PROGRESS REPORT

Customer Management ProgrammeCustomer Management Programme

Customer Centric Services• Refined customer charter, aligned to service delivery

objectives and priorities• Developed Interim Grant Application Process to

standardize grant application process• Piloted in several regions strategies to improve

turnaround time to 1—3 days. • Drafted processes for unclaimed benefits and cross

boundary transfers

Customer Management Programme (cont.)Customer Management Programme (cont.)

• Developed and implementing strategy for establishment of electronic registries

• Established National Needy Learner Database – to identify poor learners within schools, promote access to child grants

• Completed customer relationship management strategy.

Customer Management Programme(Cont.)Customer Management Programme(Cont.)

Infrastructure• Completed designs and layouts for service offices and

pay points.• Improved helpdesk services at pay points• Procured mobile offices (vehicles) to increase access in

rural and nodal areas. To be piloted in 2 regions. Full roll out for 2007/08

• Monitoring report of service providers, aimed at improving compliance and improving conditions

Strategy and Business Development Strategy and Business Development ProgrammeProgramme

Business Integration• 8 of 9 regional offices, plus some district and local

offices, moved to offices separate from DSD• Grant administration function has been capacitated with

transfer of more than 6 000 staff from provincial offices• Support function policies, procedures and delegations

are being rolled out to regions• Grant administration policies, procedures and

delegations implemented with clear reporting and accountability

Strategy and Business Development Strategy and Business Development ProgrammeProgramme

Business Partnerships• Costing of policies, grant and beneficiary projections,

through macroeconomic and micro-simulation modeling techniques

• Verification of grant projections completed• Met with various institutions to assess where they can

support and assist the Agency in promoting service delivery

Strategy and Business Development Strategy and Business Development programmeprogramme

Trends in Beneficiaries

        Average annual

Growth ingrowth rate

over

Grant Types September-05 September-06Beneficiarie

s period

Old Age 2,106,482 2,165,935 59,453 2.8

War Veterans 3,076 2,566 -510 -16.6

Permanent Disability 1,062,857 1,125,447 62,590 5.9

Temporary Disability 197,892 247,080 49,188 24.9

Foster Care (children) 284,036 363,684 79,648 28.0

Care Dependency (children) 86,737 93,879 7,142 8.2

Child Support (children, total) 6,219,994 7,496,904 1,276,910 20.5

CSG (children, 0-6 years) 3,582,971 3,943,707 360,736 10.1

CSG (children, 7-8 years) 1,126,456 1,177,238 50,782 4.5

CSG (children, 9-10 years) 952,395 1,138,114 185,719 19.5

CSG (children, 11-13 years) 558,172 1,237,845 679,673 121.8

TOTAL 9,961,074 11,495,495 1,534,421 15.4

Strategy and Business Development Strategy and Business Development ProgrammeProgramme

Trends in Beneficiaries

Average annualGrowth in growth rate over

Region September-05 September-06 Beneficiaries period

Eastern Cape 1,899,353 2,177,880 278,527 14.7Free State 652,775 707,414 54,639 8.4Gauteng 1,232,063 1,354,479 122,416 9.9KwaZulu-Natal 2,234,418 2,732,297 497,879 22.3Limpopo 1,479,933 1,697,492 217,559 14.7Mpumalanga 755,614 871,850 116,236 15.4North West 790,597 952,799 162,202 20.5Northern Cape 202,491 225,635 23,144 11.4Western Cape 713,830 775,649 61,819 8.7

TOTAL 9,961,074 11,495,495 1,534,421 15.4

Corporate Services ProgrammeCorporate Services Programme

Human Capital Management• Recruitment policy and delegations finalized• 60 % of identified critical posts have been filled• Approved organizational structure is currently under

review to ensure alignment with service delivery model• Most contract workers transferred from DSD now

absorbed into Agency as permanent staff members• Collective bargaining forum is being established• Essential Services Committee has designated SASSA as

an essential service

Corporate Services programmeCorporate Services programme

Human Capital Management, cont’d

• Labour relations forum established • Training and Development interventions have commenced• Functional training 295• Employees studying Social Security 645• Skills audit underway• HCM policies, training interventions focusing on core functions

are in development stage• Performance contracts for 80 % of SMS, 54 % of levels 1--12

Corporate Services ProgrammeCorporate Services Programme

Legal Services• Developed draft litigation strategy• Consultation with relevant stakeholders

currently underway• Ad hoc assistance and structural assistance

provided to regional offices

Information and Communication Technology Information and Communication Technology ProgrammeProgramme

• Critical business systems (BAS, PERSAL, LOGIS, SOCPEN) have been operationalised

• ICT support services provided through a SITA business agreement, while finalizing tenders for open market

• SOCPEN system managed, loopholes being closed as per previous audit

• SASSA website operational• SASSA intranet developed• Home Base electronic document management system

acquired• ICT governance structures and standard policies

developed

Communications, Marketing and Change Communications, Marketing and Change Management ProgrammeManagement Programme

• Three-year Communication Strategy and Plan developed• Internal Communication plan developed including a

regional alignment process• Finalized and introduced interim Brand. • Corporate identity standardization process concluded• National switchboard established• Call centre establishment project to be transferred from

DSD• Complaints handling guidelines in place

Finance and Supply Chain Management Finance and Supply Chain Management ProgrammeProgramme

• Budgets from provincial DSD transferred to Agency

• Detailed budgeting template created and rolled out

• Bid Committee formed and is fully functional• Supply Chain Management policies and

processes authorized and implemented

Audit and Risk Management ProgrammeAudit and Risk Management Programme

• Chief internal auditor and professional staff appointed• Audit policy developed• Risk management policy developed• Monitoring and Evaluation process established• Partnerships built with other data sources, other institutions• Special Investigating Unit (SIU) appointed for 3 years to

assist with investigations• 15 982 government employees receiving grants suspended• Fraud hotline with 24 hour number, received over 43 000

cases referred for investigation

Budget and spending trendsBudget and spending trends

_____________________Budget Allocations 2006/07 As at 30 September 2006

__________________________________________________

Budgeted (R ’000) Actual (R ‘000)

SASSA TOTAL 3,815,406 1,660,721

HEAD OFFICE 358, 355 74,042

REGIONS 3,457,051 1,586,679

Budget and spending trendsBudget and spending trends

Budget Allocations 2006 / 07 As at 30 September 2006

Budgeted (R '000) Actual (R '000)Head Office 358,355 74,042

Corporate Service 79,548 10,401Strategy and Business Development 33,123 5,267Customer Care 13,767 1,341Information and Communications Technology 169,044 32,043Treasury / Finance 30,645 4,967Communications and Marketing 17,060 2,366Office of the CEO 15,168 17,637

Budget and spending trendsBudget and spending trends

Budget Allocations 2006 / 07 As at 30 September 2006

Budgeted (R '000) Actual (R '000)

Regions 3,457,051 1,586,679

Eastern Cape 655,001 260,412

Free State 225,618 106,324

Gauteng 367,213 136,878

KwaZulu-Natal 807,009 582,597

Limpopo 498,948 166,531

Mpumalanga 257,374 93,078

North West 312,725 113,836

Northern Cape 94,185 41,203

Western Cape 238,978 85,820

ConclusionConclusion

• The SASSA establishment process is proceeding well in line with the expectations of as presented in the strategic plan

• SASSA has taken over full responsibility and accountability of the administration and payment of social grants across all nine provinces.

• The following issues pose challenges and risks for the agency:– Ceding of contracts and associated budgets from the

provincial and the National Departments of Social development to the Agency.

– Current state of litigation, magnitude of liability in respect of cost orders grants against SASSA.