Presentation on the Annual Report 2006/07 to the Select Committee on Social Services

23 October 2007

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Outline of the Presentation

The presentation covers the following:

Brief Overview of the Agency;

Summary of key achievements for 2006/07;

Achievements per programme;

Challenges; and

Concluding Remarks.

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Mandate of SASSA

“To ensure the provision of a comprehensive social security services

against vulnerability and poverty within the constitutional and legislative

framework”

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Vision

“To provide world-class socialsecurity services”

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MissionTo administer quality social security services, costeffectively and timeously using appropriate best practices by:

Developing and implementing policies, programmes and procedures for an effective and efficient social grants administration system;

Promotion and protection of human dignity; andDelivering innovative, cost-effective and efficient

services to individuals, their families and community groups via easy multi-access channels using modern technology.

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Values

Confidentiality;

Integrity;

Fairness;

Transparency; and

Equitability.

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Theme

Paying the right social grant, to the right person, at the right

time and place. NJALO!

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Key Legislations Governing SASSA

The Constitution of the RSA, 1996 (Act No.108 of 1996); Social Assistance Act, 2004 (Act No.13 of 2004) South African Social Security Agency Act, 2004 (Act

No.9 of 2004);

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Key Strategic Objectives

Ensure a High Performance Institution; Service Delivery Improvement; Improvement of Operational Excellence; and Good Governance.

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Summary of Key Achievements for 2006/07

The Agency has during the year under review achieved the following:

80% of resource effort was spent on establishment, operationalisation and integration of the social assistance administration and payment services.

Six head office Executive Managers were appointed.

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Summary of Key Achievements for 2006/07 Cont…

Head office and nine regional offices established. Shareholder’s Compact signed between the Minister and

the CEO.

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Summary of Key Achievements for 2006/07 Cont…

The following reviews were conducted:• A full review of the Core Value Chain; • A review of the role of the district in SASSA; • A review of the Service Delivery Model;

The implementation of various other service delivery enhancement projects such as the mobile unit project, the spatial optimisation project and fraud detection project.

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Summary of Achievements for 2006/07 Cont…

Centralisation and or decentralisation and integration of the social assistance administration and payment services;

Transforming the social assistance administration and payment services.

Criminal proceedings have been instituted against 2 300 of the 12 000 public servants believed to have unlawfully accessed social grants.

SASSA suspended payment to 12 000 public servants.

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Summary of Key Achievements for 2006/07 Cont…

Finance and HR Policies were developed and finalised. Finance and Human Resources (HR) Delegations of

Authority approved and implemented. Number of grants increased strongly between January

2006 and January 2007; Overall 10.7% growth across all grants;

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Summary of Key Achievements for 2006/07 Cont…

Old Age grants grew by 2.4%; Permanent Disability Grants grew by 3.9%; Temporary Disability Grants grew by 32.2%; Foster care by 26.7%; Care dependency by 9.8%; and Child Support Grant:

• 11-13 grew by 32.7%• 9-10 grew by 10.2%• 7-8 grew by 8.8%• 0-6 grew by 5.2%

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Achievements for the programme: Customer Services

Achievements in this programme relate to: Implementation of IGAP in selected regions; Completed service delivery improvements on prioritised

Norms and Standards by : • Refining and standardising the grant administration

business process ;• Roll-out of IGAP integrated with MIS • Reviewing norms and standards from application to

approval.

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Achievements for the programme: Customer Services cont…

Customer Charter was reviewed and implemented; Access to services improved in rural areas through

outreach programmes; Standardised Structural Plans and Interior Layout for

service offices completed; Spatial Optimisation and local planning for service offices

completed.

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Achievements for the programme: Customer Services cont…

Project for 2-day Turnaround time successfully implemented in the Eastern Cape;

Guidelines for unclaimed benefits, reviews and complaints drafted; and

Grant Application Forms standardised throughout the Agency

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Achievements for the programme:Internal Audit & Risk Management

2 300 public servants prosecuted for grant fraud; 257 files handed over to provincial departments for

disciplinary action; 1 150 acknowledgments of debt signed to the tune of

R6 132 382; About R5 million recovered thus far; and Fraud prevention strategy developed and implemented.

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Achievements for the programme: Corporate Services

Transferred more than 6246 grant administration staff from the National and the nine Provincial Departments of Social Development to SASSA;

Establishment of a Health and Safety Committee at head office.

Facilities Management Forum established and fully operational.

Most senior managers positions filled; Implemented HR policies and procedure manuals; and Skills Audit conducted at Head Office and regions.

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Achievements for the programme:Corporate Services cont…

Key HR policies (including HR strategy and delegations) developed and approved;

Draft recruitment policy submitted to Department of Public Service & Administration for endorsement;

300 staff recruited and appointed, to capacitate support functions;

HR Policies implemented at head office and/ regions;

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Achievements for the programme:Corporate Services cont…

Transport policy developed and approved; A vehicle needs assessment was conducted and

completed in regions; Participation in national transversal transport contract. Labour Relations Forum Constitution developed Finalised Contract Precedent Bank; and Analysed existing contracts as part of due diligence.

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Achievements for the programme:Communication and Marketing

Developed and implemented a Communication Strategy;

All Parliamentary questions replied to timeously. Participated in Government Izimbizos; Produced and distributed promotional materials; SASSA newsletters were produced bi-monthly

and distributed throughout SASSA; and

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Achievements for the programme:Communication and Marketing cont…

Co-ordinated an oversight visit for the Portfolio Committee on Social Development on 21-24 August 2006

Flighting of SASSA’s adverts and interviews on electronic media;

Hosting a SASSA Change and Loyalty programme in November 2006; and

Participation in the media networking session in August 2006.

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Achievements for the programme:Communication and Marketing cont…

SASSA media launch hosted on 30 March 2007; National Call Centre established; Interim corporate identity manual developed and

implemented; Marketing material uniformly branded; Exhibitions at key events to market SASSA;

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Achievements for the programme:Finance

Budget autonomy achieved through the consolidation of provincial budgets and the establishment of budget into single SASSA budget.

A Bid Committee established and fully functional BAS system implemented in SASSA

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Achievements for the programme: Finance cont…

Implementation of PERSAL in all regions; Supply Chain Management policies and procedures

approved. Standard policies and procedure manual on debtor

management developed.

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Achievements for the programme: ICT Transversal ICT Systems including SOCPEN, BAS,

LOGIS, PERSAL and Home Based Electronic Document Management systems implemented;

ICT infrastructure provided in all 9 regional offices and some districts; and

First phase of the MIS project completed with about 100% of all beneficiary files processed;

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Achievements for the programme: ICT Cont…

ERP processes developed and readiness assessment done;

Creating centralised SASSA's Service Level Agreement for MIS;

Contact Centre tender evaluated and awarded. SASSA website implemented on www.sassa.gov.za; Monthly statistical reports on social security grant

payments produced.

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Achievements for the programme: Strategy & Business Development

Separation criteria for Regional, District and Local Office Levels developed;

Regular monitoring and reporting of the consolidation process.

Finalised and tabled the Strategic Plan 2007/8 – 2009/10.

Presentation made to Parliament’s Portfolio and Select Committees on Strategic Plan.

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Achievements for the programme: Strategy & Business Development cont… A full review of the Core Value Chain; A review of the role of the district in SASSA; A review of the Service Delivery Model; Implementation of service delivery enhancement

projects: • mobile unit project, • the spatial optimisation project and• fraud detection project.

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Estimates of National Expenditure (ENE)

FUND

AUDITED MEDIUM TERM ESTIMATES

2006/07. 2007/08. 2008/09. 2009/10.

R'000 R'000 R'000 R'000

Establishment and Operationalisation 508,791 158,250 166,954 176,136

Grant Administration Intergrity 96,086 154,487 157,525 166,189

Social Assistance Administration 3,587,495 3,760,010 4,115,236 4,403,453

Management Information System - 70,000 20,000 20,000

4,192,372 4,142,747 4,459,715 4,765,778

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Expenditure for 2006/07 in terms of Economic Classification

FUND ALLOCATED BUDGET AUDITED YTD   2006/07. 2006/07. EXPENDITURE   R'000 R'000 AS A %

Compensation of Employees

880,707

710,683 81%

Contractor Payments

2,015,056

2,245,250 111% Other Goods &

Services

994,993

699,435 70%

Transfers & Subsidies

100,693

101,537 101% Payment for Capital Assets

200,923

62,276 31%

Revenue Transfers

4,192,372

3,819,181 91%

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ChallengesThe following challenges were experienced during the reporting period;

Finalisation and implementation of the Employment Equity Plan

Filling of vacant critical posts-head office/regionsRoll out of the new SASSA brand; Finalisation of appeals on grants application process.

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Challenges cont…

Limited resources to fulfill SASSA’s mandate timeously; Finalising-policies, procedures and delegations; Delays in ceding of projects by DSD; Unavailability of affordable ICT architecture skills; High numbers of litigation cases resulting in appeals on

grant applications.

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Challenges cont… Fast tracking the appointment of personnel Finalisation of the Employment Equity plan to ensure

compliance to legislative requirements; Effective and efficient roll-out of IGAP;

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Concluding Remarks

SASSA is an emerging organisation. There are still a number of challenges that need to be

addressed. With dedication and commitment SASSA can become a

“world class organisation”.

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