Annual Performance Plan Budget 201718 201920 Presentation to

Annual Performance Plan & Budget 2017/18 -2019/20 Presentation to Portfolio Committee on Social Development 19 May 2017

Presentation Outline • Purpose • Overview • SASSA’s Strategic outcome oriented Goal • 2014 – 2019 MTSF Priorities • SASSA Strategic objectives • 2017/18 Targets per Programme – Programme 1: Administration – Programme 2: Benefits Administration and Support • Improved Social Grants Payment System – Prioratisation of the implementation of the Constitutional Court order • Financial Plan • Recommendations

Purpose • The purpose of the presentation is – To brief the Portfolio Committee on Social Development on the SASSA 2017/18 Annual Performance Plan and Budget ; and – Highlight the prioratisation of the implementation of the Constitutional Court order

Overview 4

Overview • SASSA is a Schedule 3 A Public Entity established in April 2006 in terms of an Act of Parliament (SASSA Act, 2004) • The objective of SASSA is to – act, as the sole agent that will ensure the efficient and effective management, administration and payment of social assistance; and – eventually serve as an institution to manage broader social security benefits • The social assistance programme and the operation of SASSA is fully funded by government.

Overview 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! 6

SASSA’s Strategic Outcome Oriented Goal NDP OUTCOME RELEVANT TO SASSA Outcome 13: An inclusive and responsive social protection system SUB- OUTCOME (SO) SO 4: Deepening social assistance and extending the scope for social security. SASSA STRATEGIC OUTCOME ORIENTED GOAL Expand access to social assistance and creating a platform for future payment of social security benefits. SASSA GOAL STATEMENT To render social assistance to eligible beneficiaries 7

SASSA 2014 -2019 MTSF Priorities • The primary focus of SASSA in the medium term is: – Reducing income poverty by providing social assistance to eligible individuals; – Improving service delivery; – Improving organisational efficiency; – Automation of business systems; – Institutionalising social grants payment system within SASSA. 8

Programmes • Programme 1: Administration – Sub-programme 1. 1: Executive Management – Sub-programme 1. 2: Corporate Services – Sub-programme 1. 3: Information and Communication Technology – Sub-programme 1. 4: Financial Management • Programme 2: Benefits Administration and Support – Sub-programme 2. 1: Benefits Administration – Sub-programme 2. 2: Payment Administration 9

SASSA 2017/18 Strategic Objectives • To improve the effectiveness and efficiency of the administration of the social assistance programme; • To promote Customer Centric services • To provide human capital management, facilities and auxiliary services; • Effective information and communication technology; • Effective financial management; and • To uphold good governance. 10

2017/18 Targets per Programme 11

Programme 1: Administration 12

Improved Organizational Efficiency Sub-programme 1. 1: Executive Management Objective To uphold good governance Planned Internal Fraud Management 2017/18 Audit Targets 30 Internal Fraud Prevention: audit reviews • 72 fraud, theft and conducted on corruption awareness high risk programmes conducted areas across the 9 Regions. • Fraud, theft and corruption cases investigated. q 70% of new cases investigated; and q 100% backlog cases investigated. Risk Management • An updated Strategic Risk Register maintained. • An updated Operational Risk Register maintained (Head Office).

Improved Organizational Efficiency Sub-programme 1. 2: Corporate Services Objective Planned 2017/18 Targets To provide human capital management, facilities and auxiliary services Human Capital management Facilities Management • HR Plan reviewed (focusing • Implementation of the new on the revised grant value model for Records chain) Management Centres focusing on 3 Regions • Capacity model reviewed (focusing on the revised 1. Limpopo grant value chain) 2. Northern Cape 3. Mpumalanga • 95% of funded posts filled 14

Improved Organizational Efficiency: Sub-programme 1. 3: ICT Objective Effective ICT operations Planned 2017/18 Targets • Biometric Solution for users acquired and implemented. • SASSA network connectivity infrastructure upgraded (Head Office, Regional Offices, Records Centres, District offices and 50 Local offices). • Governance Risk and Compliance Solution Procured and Implemented. • Data service integration solution procured and implemented. 15

Improved Organizational Efficiency: Sub-programme 1. 3: ICT Objective Effective ICT operations Planned 2017/18 Targets • Automation of Registries q Back scanning solution implemented in 6 regional records centres. q On-going scanning implemented in Fifty (50) local offices. • Enterprise Business Intelligence Solution implemented in all branches (Finance, Corporate Services, ICT, Strategy and Business Development). • Web-interface solution procured and configured. 16

Improved Organizational Efficiency Sub-programme 1. 4: Financial Management Objective Planned 2017/18 Targets Effective financial management • Unqualified audit outcome achieved. • 100% eligible suppliers paid within 30 days. • 5% of social assistance debts recovered and/or written off. • Collections • Write offs focusing undue hardships • destitute people 17

PROGRAMME 2: Benefits administration and support 18

Implementation of the Social Assistance Programme Objective To provide social assistance to qualifying/eligible beneficiaries Planned 2017/18 Targets • Planned to reach 1 512 000 million new applicants. • 95% of new social grant applications processed within 10 days (1 436 400). • Increase the number of grants in payment from 17. 1 million to 17. 5 (17 523 737) by end of 2017/18 financial year. • Process a total of 560 000 new applications for children aged 0 – 1. • 500 000 SRD applications will be awarded to families under distress (SRD budget for 2017/18 - R 600 million). 19

Implementation of the Social Assistance Programme Objective Reduction of inclusion and exclusion errors in the social assistance programme Planned 2017/18 Targets • Process foster care grants reviews in collaboration with DSD. q 232 757 FCG reviews are targeted. 20

Improved Service Delivery Objective To raise awareness of beneficiaries on their rights and obligations relating to social assistance Planned 2017/18 Targets • ICROP: – 600 identified wards having access to social assistance through ICROP • Mikondzo – 40 Mikondzo service delivery interventions conducted • Public Participation – 600 beneficiary education awareness programmes conducted. – 1000 public awareness programmes conducted 21

Improved Social Grants Payment System Objective • Improved customer centric services Planned 2017/18 Targets • Resolve 80% of enquiries within 5 days as per SASSA’s customer care charter. • Monitor 100% of large cash paypoints (Paying more than 300 beneficiaries a day). • Cost of administering social assistance - R 44. 00 per beneficiary. • Cost as a percentage of social assistance transfers budget - 5. 1% (R 7. 7 bn). 22

Improved Social Grants Payment System (Prioritization of the implementation of Constitution Court order) Objective • Improved customer centric services Planned 2017/18 Targets • Insourcing of Regulation 26 A (elevated from Operational plan) • Set up of SASSA Holding Account • Appointment of New Service Provider/Solution Integrator • Phasing in New Service Provider and Phasing out of CPS • Submission of Constitutional Court quarterly Reports (costs associated with independent experts and Counsels) • Local Economic Development (Alternative pay-points) • Ongoing Communication and Change Management 23

SASSA Financial Plan 24

SASSA’S MTEF APPROPRIATION Baseline/Transfer 2017/18 2018/19 2019/20 R’ 000 7 473 942 7 907 430 8 350 246 Less Reductions To Fund other Government Priorities - 58 224 - 30 956 -154 517 - 209 657 - 115 795 - Revised Baseline/Transfer 7 206 061 7 760 679 8 195 729 4% 8% 6% 502 456 123 000 - 4 400 4 600 4 876 7 712 917 7 888 279 8 200 605 Year-on-Year Growth on baseline Retained Cash Surplus Own Revenue Total

Commentary on the medium-term estimates • There has been a total reduction of R 569, 149 million on the Agency’s baseline over the 2017/18 MTEF made up of R 267, 881 million in 2017/18, R 146, 751 m in 2018/19 and R 154, 517 m in 2019/20. • These reductions were effected during the MTEC process to fund other government pressures. • These reductions are resulting in spending pressures on the Agency particularly considering the transition phase.

Medium-term estimates: Programmes 1: Administration 2: Benefits Administration Support TOTAL Economic Classification 2017/18 2018/19 2019/20 R’ 000 Compensation of Employees 1 072 008 1 145 424 1 209 568 Goods and Services 1 852 557 1 789 734 1 817 323 Transfers 12 089 12 142 12 822 Subtotal 2 936 654 2 947 300 3 039 713 Compensation of Employees 2 170 217 2 318 540 2 448 378 Goods and Services 2 589 807 2 605 154 2 694 371 Transfers 16 239 17 181 18 143 Subtotal 4 776 263 4 940 875 5 160 892 7 712 917 7 888 175 8 200 605

Medium-term estimates: Key Items Medium Term Estimates 2017/18 2018/19 2019/20 R’ 000 Compensation of Employees 3 242 225 3 463 964 3 657 946 Goods and Services 4 409 900 4 360 509 4 475 390 204 900 217 578 229 762 85 708 100 108 105 714 353 927 371 958 360 655 2 258 674 2 257 024 2 350 123 376 275 459 964 485 722 88 428 94 754 100 060 431 897 444 875 469 788 Other 32 464 34 379 36 304 Transfers and subsidies 28 328 29 323 30 965 7 712 917 7 888 175 8 200 605 Of which: Agency and support/ outsourced services Communication Computer Services Payment Contractors Lease payments Repairs and maintenance Property payments Total Expenses

Implications of the budget reduction • SASSA had to reduce its 2017/18 baseline allocation by an amount of R 209, 657 million in line with the budget cut implemented by National Treasury • Undertaking prioritisation of projects/activities • Prioritizing more on essential items including contractual obligations and or commitments • SASSA also had to scale down on the filling of critical vacancies 29

Financial Implications for implementation of Constitutional Court order – 2017/18 Estimates New Requirements Key Activities Estimated Costs Was the activity planned If not where does the funding come from Insourcing of Regulation 26 A Contracting with Qlink R 500 000 Yes, however it was in the operational plan. (Programme 2) To be covered under the current SITA Contract Setting up of SASSA Holding Account Setting up costs R 1 Million Transfer of funds to Beneficiaries with commercial accounts R 28. 8 m Phase-in of the new Payment Provider Phasing in the new Cost to be card factored in the new payment Transaction costs provider payment for piloting areas model Not required during the 2017/18 30

Financial Implications for implementation of Constitutional Court order – 2017/18 Estimates New Requirements Key Activities Submission of Constitutional Court quarterly Reports Independent Monitors : Lawyers R 624 000 No Independent Monitors: Technical R 672 000 No Senior Counsels R 840 000 No Phasing out of CPS Estimated Costs Data Migration (SASSA to ensure that there is storage capacity & data verification capacity) Already within SASSA operational plan Transaction Costs R 16. 44 X 12 m X 12 Was the activity planned If not where does the funding come from Reprioritisati on Yes 31

RECOMMENDATIONS • It is recommended that the Portfolio Committee note and approve SASSA’s Annual Performance Plan and Budget for the 2017/18 financial year. 32

Thank you