Social Security AgencySocial Security Agency

Presentation to Portfolio Presentation to Portfolio CommitteeCommittee

19 October 2005

Outline Of PresentationOutline Of PresentationBackgroundThe Journey MapSASSA STATE OF READINESS

Key MilestonesLegislationStaff IssuesLeadershipFundsProcesses – OperationsICT & InfrastructureOffice FacilitiesStakeholders & Beneficiaries

PROGRESS REPORT:Governance FrameworkKey Strategic PrioritiesKey Strategic Themes

Conclusion

BackgroundBackground

Providing social assistance grants is a key government poverty alleviation program, ensuring income support to over 9.8 million vulnerable individuals.

The Agency is a Schedule 3(a) public entity responsible for administration and payment of social grants.

Background -Background - Vision Vision

To ensure a better quality of life for all South Africans by providing world-class

social security services

Background -Background - MMissionission

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;

Paying the right grant amount, to the right person, at the right time and at the most convenient place;

Delivering innovative, cost effective and efficient services to individuals, their families and community groups.

Background -Background - CCore ore VValuesalues

Promotion and protection of human dignity

Confidentiality

Integrity

Fairness

Transparency

Equitability

The Journey MapThe Journey Map

Three distinct phases constitute the journey map:

Initial phase: prior to April 2005 and was concluded with MOU signing and introduction of the conditional grants - completed

Transitional Phase: started April 2005, ending April 2006. Involves making the Agency operational and prepare for function transfer

Optimisation phase:

Full operationalisation follows the transfer of the social grants function to the Agency; and,

Implementing the new delivery model with radical improvements in the quality of delivery

The Journey MapThe Journey Map Defined the Day One Readiness Framework

Defined the minimum expected objectives to be achieved on DAY One of SASSA - 1 April 2006

Developed the Journey Map with key outputs and milestones to achieve on Day One

Allocated the outputs and milestones to Workstreams

Aligned work stream charters & plans to Journey Map

Aligned status reporting process to Journey Map

SASSA SASSA State of State of Readiness Readiness FrameworkFramework

SASSA readiness will involve the consolidation and completed preparation of the business pillars:

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Finance

Legal

HR

ICT

Change & comms

Service Delivery

Facilities

Regions

Responsible for outputs & acceptance Provide inputs to responsible stream

‘Day One Readiness’ is defined by the following ten objectives that need to be achieved by 1 April 2006:

1. The service provider contracts are agreed with NDoSD, ceded or renewed, and operations aligned

2. Critical regulations are promulgated and institutional arrangements are in place

3. Critical staff are appointed and trained

4. Key leadership team appointed & performance compacts signed

5. Funds for the establishment budget and 2006/2007 budget are transferred

SASSA State of Readiness - Day OneSASSA State of Readiness - Day One

SASSA State of Readiness - Day OneSASSA State of Readiness - Day One

6. Critical processes & policies are implemented within the governance & reporting frameworks

7. Critical ICT systems & infrastructure for SASSA operational

8. SASSA employees are settled in offices by 28/02/2006 (whether interim, permanent or existing employees)

9. SASSA expectations are communicated to stakeholders, beneficiaries and employees

10. SASSA brand established and SASSA launched

Key Monthly MilestonesKey Monthly Milestones SASSA ready

Day 1 State Sept Oct Nov Dec Jan Feb Mar

Day 1

Service providers & contracts listed

Contracting Strategy approved

& planned

Contracting renewal & MoU discussions

started

Contracts renewed or ceded or MoU’s

signed

Service provider operations aligned

SASSA verified alignment of

service provider operations

Service providers briefed on future

expectations

Service Providers contracts agreed with NDoSD, ceded or renewed,

and operations aligned

Critical Regulations defined

Institutional arrangements

defined & planned

Critical Regulation changes effected

Critical Regulations promulgated

Stakeholder consultations re

regulations

Institutional arrangements

verified

Shareholder agreements signed

Critical regulations promulgated & Institutional Arrangements in place

Organisation Structure approved

Critical Staffing plan approved &

positions advertised

Critical staff screened & interviewed

Staff transferred from provinces & disputes settled

Critical staff appointed Staff trained

Day 1 Staff Contingency

plannedCritical staff appointed and trained

Skeleton executive positions advertised

HO CXO’s appointed

Top management appointments

continued

HO SM’s & regional CXO’s appointed

Regional SM’s appointed

Leadership Alignment

workshops;SASSA Vision &

Strategy

Leadership performance

contracts signed

Skeleton leadership team appointed & performance compacts signed

Establishment budget submitted

Establishment funds transferred

SASSA 2006/2007 budget approved;

Re-allocation of HO funds

Re-allocation of RO funds

Registration for levies

2006/2007 budget loaded

Trial balance signed off

preparations

Funds for Establishment budget & 2006/2007 Budget transferred

Policies approvedHO admin functions established; To-be Procedures drafted

To-be procedures & reporting formats

approved

Detail process, policy & procedure

implementation plans

Functions separated;

Governance & reporting

frameworks in place; Policies

actioned

SDI strategy approved ; Final Readiness Verification

Mission critical processes & policies actioned within Governance & reporting

frameworks

HO & RO system requirements approved &

decisions finalised

HO transversal systems, Socpen

and Support in place

Regional infrastructure & critical system

migration started

Regional transversal systems & Socpen systems

ready

Regional systems operational &

infrastructure in place

SASSA users trained

ICT improvement recommendations

submitted

Critical ICT systems & infrastructure for SASSA

operational

Office premises identified & agreed

Occupation dates agreed; Office

migration strategy

Detail migration plan; Preparation

completed

Office Migration started

Office migration completed & staff

settled

Freeze on Office moves

Freeze on office moves

SASSA staff settled in offices by 28/02/06 (whether interim,

permanent or existing)

Stakeholder & beneficiary

Engagement planned

HO internal comm’s capacity & change network in place

HOExternal comm’s capacity in place

Migration objectives communicated

Appointments communicated

Readiness expectations

communicated

SASSA vision & strategy

communicated

SASSA expectations communicated to stakeholders, beneficiaries &

staff

Service provider RFT issued

Service provider appointed

Brand, PR/marketing

strategy & plan, & Visual Identity

Approved

Corporate Identity established

PR & marketing continued

PR & marketing continued SASSA launchedSASSA Brand Established &

Launched

Version 2.0 – Finalised Journey Map for Alignment of Regional and Work Stream Plans Last edit date: 10/10/2005

LegislationLegislation

Statutory and Regulatory – NDoSD is in the process of finalising the specific regulations require

Litigation – NDoSD is managing a process of evaluating the extent of and impact of litigation on social security

Governance – the relevant governance frameworks, instruments structures and institutions required are being identified and established

Staff IssuesStaff Issues

H/O Organisation Structure has been finalised

Most of the Regional Office Organisation Structures have been approved

Job evaluations 90% complete

Key staff positions on the organisation structures have been identified – if need be can still absorb support staff if transferred from the provincial departments

Staff IssuesStaff Issues

Recruitment of the key management and operational positions has commenced

Existing NDoSD Employment Terms and Conditions will be used in the interim period

Persal is being configured to enable new staff to be captured on the system

Migration strategy for provincial staff to be finalised by NDoSD 11 November 2005 – major dependency

LeadershipLeadership

SASSA strategic plan developed awaiting finalisation

Most H/O Executive posts filled

Regional Executive Management Positions Advertised

H/O and Regional Office General Management and Senior Management positions advertised

FundsFunds

Developed Funds Flow Proposal and ready for Treasury approval

Developed proposed Budget Structure and Standard Chart of Accounts

Decision to remain on BAS as the SASSA financial system until implementation of the ERP – implication need to remain on cash accounting

Are applying for permission to remain on cash accounting for the next financial year

Financial Ring Fencing of Assets and Liabilities not yet complete in all provinces

FundsFunds

Finalising the SASSA establishment budget and will submit to NDoSD by end of the month

Process of refining the FY06/07 operating budget in line with the strategic plan

In process of applying for listing as a Schedule 3A entity with National Treasury

In process of finalising required registrations e.g. SARS, UIF, etc

Processes - OperationsProcesses - Operations

Delegations were finalised for all SASSA functions and submitted to Exco for approval

Establishment of H/O support functions (Finance, IT & HR) to be fully operational by 31/10/05

Provinces completed the Operational Ringfencing Checklists and submitted to H/O

The policies to roll out to regions were approved for Finance, HR & IT

ICT & InfrastructureICT & Infrastructure

Procedures to roll out to regions were drafted for Finance, other functions on track to be completed by 30/11/05

Critical systems (BAS, Persal, Logis) will be operational at H/O by 28/10/05

The provincial assessments were completed, and a another round to refine the assessment is planned

A detail plan is being developed in order to assess the feasibility to migrate from Walker to BAS in North West province before Day 1

Office FacilitiesOffice Facilities

SASSA H/O refurbishment and IT infrastructure is in place

In the process of finalising the agreements for regional offices

Stakeholders & BeneficiariesStakeholders & Beneficiaries

Stakeholder Communications:Stakeholder map developed

Internal Communication plan created

Stakeholder Engagement, Leadership Alignment and Communication Approach developed

Communication Strategy presented at Guiding Coalition

Change ManagementChange Management

Change Management:

Change Agent network requirements confirmed and template developed for HOSS’s

Need for change agents positioned with HOSS’s

Change Management overview presented at Guiding Coalition

Agenda for Change Agent mobilisation session developed and approved and will be distributed soon

Received draft Terms of Reference for Change Management Tender

Editorial process created with regard to the development, printing and distribution of the “SASSA Update”

Governance FrameworkGovernance Framework

In terms of the governance arrangements, progress includes:

The Agency Act and Social Assistance Act will be in force by March 2006

MOU governs the transitional period, but a Business Partnership Agreement was drafted for post April 2006

Reporting framework in terms of Agency Act and the relevant PFMA sections has been finalised National Treasury

An Advisory Panel was established with members from the public and private sector and international experts to advise the Agency

A Panel of Ministers and Director’s General has been established

National Department in the process of rolling out structures and staff for oversight responsibility

Key Strategic PrioritiesKey Strategic Priorities

Key Performance Areas are:

Service delivery quality

Grant process integrity

Financial Management

Management of Payment Contractors

Minimization of fraud

Organizational capacity

KeyKey SStrategic trategic TThemeshemes

Ensure a High Performance Institution

Service Delivery Improvement

Good Governance

Building Human Capital

Sound Financial Management

Create/Establish a High Performance Institution

Business Continuity Transition Plan

Establish offices

Staffing: recruitment, migration and change management

ICT systems/enablers established and in place

Organisational Structure implemented

Policies, processes, delegations finalised

Contracts reviewed, ceded and new contract management frameworks established

Financial Administration in place and funds transferred

Brand established

Ensure a High Performance Ensure a High Performance InstitutionInstitution

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

Governance Framework of co-operation

Ensure a High Performance InstitutionEnsure a High Performance Institution

Ensure a High Performance InstitutionEnsure a High Performance Institution

Consolidate a high performance institution

Develop consolidation processes with strategic review

Aligned with other outputs (consolidate through reviews – evaluate, consolidate position and re-align)

Ensure Agency compliance with legislative mandates

Development of uniform training programmes that address compliance

Implement Training Programme

Setting up structures (R&R) to match compliance

Service Delivery ImprovementService Delivery Improvement

Improve administration of social security in a manner that meets stakeholder expectations

Design and implement strategy for back office integration, including ERP system

Roll-out priority ICT systems

Complete revenue and debt management strategy and commence implementation

Develop options for alternative service delivery models with other partners

Commence data improvement quality programme

Effective forecasting model

Service Delivery ImprovementService Delivery ImprovementImprove delivery of social security in a manner that meets stakeholder expectations

Implement norms and standards

Piloting of Service Delivery Model and commence implementation

Design and introduce standardise contracts and guidelines

Optimise (incrementally) infrastructure to improve access to social assistance

Develop customer relationship strategy

Introduce call centres

Develop customer charter for beneficiaries

Good GovernanceGood Governance

To ensure a culture of integrityAlign policies and procedures with relevant legislation

Develop a communication strategy

Develop a complaints mechanisms

Appeal mechanism

Good GovernanceGood Governance

To ensure good corporate governance

Develop fraud prevention strategy and commence implementation

Implement structures, systems and procedures in line with legislation, King Report on Corporate Governance and state owned entity protocols

Develop a code of conduct and ethics

Strengthening partnership and collaborations

Develop & maintain risk management plan

Building Building HHuman Capitaluman Capital

To recruit, develop, and retain skilled competent employees:

Develop and Implement compliant HR Strategies, Policies and processes

Implement job & competency profiles linked to new Service Delivery model

Develop new Induction and Performance Management System aligned to Organisational Performance Model

Design and implement an optimal HR planning, training and development strategy

Develop and implement a Remuneration Strategy

Sound Financial ManagementSound Financial Management

Improve financial administration

Complete revenue and debt management strategy

Commence implementation of financial accounting policies and systems

Delegation of Authority in place

Budget structure and SCOA for transfers and operations

Programme 1: Corporate Services Programme 1: Corporate Services Management (Office of CEO)

Overall Strategic Management of the Agency

Regular reports to principal stakeholders

Human Capital ManagementHuman Resource Strategy and Policies

Implement new Performance Management System

Capacity building based on HR development strategy

Office ServicesProvision of office services

Finalised policies, processes, delegations for office services

Programme 1: Corporate ServicesProgramme 1: Corporate Services

CommunicationDevelop a communication strategy, including mechanism for stakeholder redress and complaints

Provincial Operational SupportDevelopment of effective Management Structure

Contracts ceded, and new contract management frameworks established

Develop Code Of Ethics

Corporate Governance: Structures of corporate governance established

Change Management: Change management implemented

Programme 2: Service Delivery Programme 2: Service Delivery AssuranceAssurance

Internal Audit

Quality Internal Audit reports on risk management and control

Quality Internal Audit reports on governance processes

Risk and Fraud Management

Promotion of good corporate governance

Culture of integrity is promoted

Complete fraud prevention strategy and commence implementation

Programme 3: FinanceProgramme 3: Finance

Financial Accounting and Administration

Finalise the transfers of Budgets, Assets & Liabilities

Financial capacity in place

Financial accounting policies and systems

Delegation of Authority

Budgeting and Reporting

Budget structure and SCOA for transfers and operations

Funds flow model finalised

Programme 3: FinanceProgramme 3: Finance

Procurement and Contract managementMonitor & review the management of the contracts for Service Delivery Payment Contractors

Procurement policies implemented for suppliers of goods and services

Contract management strategy and plans

Develop the outsourced model for non-core services

Risk Management

Develop Risk Management plan applicable to Finance

Programme 4: IProgramme 4: Information nformation TTechnologyechnology

Systems Development

Implement ERP systems

Automate Grants processes (ECM)

Implement Data warehouse

Socpen Replacement

Implement a CRM solution

Programme 4: IProgramme 4: Information nformation TTechnologyechnology

Information Management

Implementation of e-Government and portal services

Implementation of a Business Intelligence (BI) solution

Provision, utilisation and management of information as a strategic resource that ensures realisation of the business objectives

Programme 4: Information Programme 4: Information TechnologyTechnology

IT OperationsEnhancement and Maintenance of SOCPEN and Provision of information technology solutions

Implementation of interim ERP system (BAS, PERSAL, LOGIS)

Maintenance of Network Hardware and software

User support and service management

Acquisition of hardware, software and management of contracts and agreements

Programme 4: Information TechnologyProgramme 4: Information Technology

IT Governance and ArchitectureDevelop governance plan Development and Implementation of the Master Information Systems Plan

Development of Enterprise IT Architecture, principles and standards

Develop and implement IT organizational structure

Develop IT Security plan and Risk Management Plan (BCP)

Programme 5: Service DeliveryProgramme 5: Service Delivery

Improve delivery of social security services in a manner that meets stakeholder expectations

Improve service delivery to restore the dignity of beneficiaries

Design and introduce standardised contracts

Optimise infrastructure to improve access to social assistance

Customer relationship strategy

Introduce call centres

Develop customer charter for beneficiaries

Programme 6: Strategy and Business Programme 6: Strategy and Business DevelopmentDevelopment

Strategy formulation

Institutional Policy and strategy formulation

System of Reporting in place

Corporate Governance

Structures of corporate governance established

Corporate Governance policy guidelines implemented

Programme 6: Strategy and Business Programme 6: Strategy and Business DevelopmentDevelopment

Innovation and Change Management

Research and development

Monitoring and evaluation

International and national liason

Collaboration at international and national level for exchange of best practices and to explore new business opportunities

ConclusionConclusion

Status Report to be presented to Cabinet & PCC in November 2005

Consultative process with Provinces has been initiated

Agency is working on ensuring State of Readiness by 01 April 2006