Annual Report 2008/09

Presentation to the Portfolio Committee on Social Development

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Outline of the presentation

The presentation covers the following:

• Part One: Overview;

• Part Two: Achievements against 2008/09 Strategic Priorities;

• Part Three: Budget and Expenditure for 2008/09 (Financials);

• Part Four: Auditor-General Report

• Part Five: Challenges and Concluding Remarks.

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PART ONE

Overview

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Mandate

• SASSA derives its mandate from the following Acts:

• The Constitution of the RSA, 1996 (Act No.108 of 1996);“Everyone has the right to have access to : Social Security,

including, if they are unable to support themselves and their dependants, appropriate social assistance”

• Social Assistance Act, 2004 (Act No.13 of 2004); – One of the key objects of this Act is to “provide for the

administration of social assistance and payment of social grants.”

• South African Social Security Agency Act, 2004 (Act No.9 of 2004);– One of the key objects of this Act is to” act, eventually, as the

sole agent that will ensure the efficient and effective management, administration and payment of social assistance.”

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SASSA Strategic Intent

To ensure the provision of a comprehensive social security service against vulnerability and poverty within the constitutional and

legislative framework.

Vision “To provide world-class social

security services”

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Mission

• 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;

– Promotion and protection of human dignity; and– Delivering 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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Strategic Priorities

Priorities for the year under review:

• Improving the quality of service delivery;• Improving organisational capacity;• Improving payment services;• Enhancing the integrity of the grant process;• Improving financial management; and• Minimising fraud.

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• Confidentiality;

• Integrity;

• Fairness;

• Transparency; and

• Equitability.

Values

Theme

Paying the right social grant,

to the right person, at the right

time and place. NJALO!

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PART TWO

Achievements Against 2008/09 Strategic Priorities

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Overall Achievements

• Over 13 million South Africans receive social assistance

benefits

9 million are children;

2.9m are older persons; and

1.28m are people with disabilities

• The number of people receiving grant increased from

12,3m in 2007/08 which represents a growth of 5.2%• KwaZulu -Natal has the highest number of grants

recipients followed by EC and LIM regions respectively;• NC has the lowest number of grants recipients

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Grant Uptake for Financial Years 2007/08 and 2008/09

Grant type2007/08 2008/09 Difference

% Growth Rate

Disability Grant 1,408,456 1,286,893 -121,573 -8.6

Old Age 2,229,550 2,390,543 160,993 7.2

War veterans 1,924 1,500 -424 -22.0

Care Dependency 102,292 107,065 4,773 4.7

Child Support 8,189,975 8,765,354 575,379 7.0

Foster Child 454,199 474,759 20,560 4.5

TOTAL 12,386,396 13,026,104 639,708 5.2

Grant in Aid 37,343 46,069 8,726 23.4

• The table shows that in 2008/09 there was an increase of 639,708 in grants uptake which shows a growth rate of 5.2% over the previous financial year

• There is also a decrease in the uptake of disability and war veterans grants

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Social Assistance grant expenditure

 

Years

2003/04 2004/05 2005/06 2006/07 2007/08 2008/09

Expenditure (R in millions) 36,982 44,885 50,708 57,720 62,119 69,449

% of GDP 2.9% 3.1% 3.2% 3.3% 3.1% 3.5%

• The table shows that SASSA has spent over R69 billion rands in payment for the social grants in 2008/09; and

• There was a significant increase in grants as compared to 2007/08 social assistance grants

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Overall Achievements

New policy Directives• Age Equalisation (Reaching 100% of all men aged 63

and 64 by 31 March 2009)– Implemented phase 1 of the age-equalization for 63

and 64 year old males from 1 July 2008. – In total106,109 males were registered

• Gradual Expansion of CSG – Implemented the extension of the Child Support Grant

(CSG) to children up to the age of 15 from 1 January 2009.

– A total of 30,866 applications were received up until 31 March 2009

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Overall Achievements :

New policy Directives (continued)• Means Test

– Implemented the changes to the means test allowing more persons access to social assistance with effect from August 2008.

– Adjustments were made on beneficiaries that were already in the system

• Regulation10 (6)– Implemented Regulation 10(6) allowing persons to apply

for social assistance without a identity document. At the end of 2008/09 the number of applications with alternative identity documents was about 4 000

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Priority 1: Improving the quality of service deliverySocial Relief of Distress (SRD)

• An initial budget of R124 million allocated to the Agency for 2008/9 was later augmented by R500 million in November 2008, making the total allocation for SRD for the financial year R624m

• Spending at year end of financial year stood at about R650m (104%)

Targets reached• Assistance was in the form of food parcels, cash and school

uniforms. • A total of 765 347 people were recipients of SRD as follows:

– A total number of 568 909 food parcels / vouchers were issued;– A total number of 128 746 school uniforms were issued;– Cash payments to 35 679 recipients; and– Other recipients 32 013.

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Priority 1: Improving the quality of service delivery

Improved Application Process

• Standardised the application and review processes

• The average turnaround time for the processing of applications in SASSA decreased from 21 to 9 days, with the ultimate target being a single day.

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Priority 1: Improving the quality of service deliveryImproved Access to Services• Services were taken closer to potential beneficiaries,

especially to those in the rural areas, through the Integrated Community Registration Outreach Programme (ICROP)– Conducted 500 ICROP outreach programmes in all

regions– Registered over 133 590 beneficiaries and 80% of

those registered were child support grants• Implemented the Customer Care Charter which places

beneficiaries at the centre of our core activities

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Priority 2: Improving organizational capacity • Developed a Code of Conduct and Ethics for SASSA

which was provided to all staff members• Developed protocol guidelines to foster a culture of

professionalism within the context of the Constitution of the Republic of South Africa.

• The contract and litigation management frameworks were developed to promote uniformity in the management and administration of contracts and litigations; and

• The frameworks have resulted in reduction in litigation cases against SASSA and ensured standardization in the management of contracts across SASSA.

• The number of litigation cases has been reduced from 41 505 in 2006/07 to 453 in 2008/09

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Priority 3: Improving payment services

• There was continuous improvement in most local offices and pay points in terms of access and service provision to beneficiaries in line with the Batho Pele principles; – Infrastructure improvement in 27% of pay points;

• Developed contract and vendor management strategy;• Standardized Service Level Agreements (SLA) for cash

payment services;• Monitored compliance of payment contractors with SLA;• Implemented monitoring tool to monitor services by cash

contractors which resulted in regions taking corrective measures in improving the payment of grants.

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Priority 3: Improving payment services• Promoting electronic payment as alternative payment

strategy– 70% of beneficiaries are paid through cash and 30%

through electronic payment– SASSA has embarked on a strategy to promote the

use of electronic payment where infrastructure exists– The migration of grant beneficiaries to electronic

payment is proving to be fairly successful– Already 49.78% of new approved applications opted

for ACB (banking services) and Post Bank.

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Priority 3: Improving payment services• Management of dormant accounts

– In May 2007 60 000 dormant accounts were identified by two banks namely Standard and ABSA.

– In February 2009 the subpoenas were served on the banks.– All the banks complied with the subpoena except for Ithala Bank.– 39 000 accounts with unclaimed benefits and 250 000 failed

bank accounts where the details of the beneficiary did not match that of the account holder were identified.

– The SIU did an analysis of the 39 000 beneficiaries and found that 10% were already deceased, some beneficiaries had non identifiable identity documents and some were listed on CIPRO.

– All the 39 000 beneficiaries are currently under review and will be reported on in the current financial year

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Priority 4: Enhancing the integrity of the grant process

• Developed an ICT service delivery infrastructure network to support the grants administration and payment processes

• Interfaced with other systems to verify eligibility status i.e. DHA, Persal, GEPF etc;

• The first phase (registry module) of the implementation of the MIS was finalized in all the Regions.

• There is now a central Record Management Centre established for each region

• The MIS was further complemented by the Piloting of the Improved Grant Application Process (IGAP) in the FS, which aims at reducing the turnaround time for processing applications from 21 days to a single day;

• Applications in the pilot site are being completed within one day.

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Priority 4: Enhancing the integrity of the grant process

• Implemented the Disability Management Model • Standardized disability assessment forms

implemented in all regions; • Trained medical assessors on the new form; • In total 88 300 medical reviews were conducted

which is more than the 10% targeted for 2008/09 financial year

• Completed 77% of the backlogs in reviews; • Achieved 90% reduction in temporary disability-grant

backlogs

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Priority 5: Improving financial management• Developed and implemented an annual Internal Audit

Coverage Plan, which clearly articulates the areas of focus for the financial year

• The reviews conducted included audits that focused on SASSA’s core business and support operations.

• Good governance was promoted by providing support and guidance to the Regional Audit Steering Committees;

• In an effort to strengthen and monitor compliance and governance issues, SASSA provided consulting services to the Risk Management Committee, Financial Misconduct Board and ERP Project Steering Committee

• The intention was to proactively identify risks and provide advice to ensure achievement of objectives. A risk matrix for SASSA was developed in this regard

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Priority 6: Minimizing fraud

• SASSA brought 3,930 new fraud cases to court and 3,605 of the accused were convicted;

• 9,911 fraudsters signed acknowledgement of debt valued at R50,2 million;

• Conducted 28 internal audit reviews • Developed Risk Management Framework and Risk

register • Conducted 25 compliance inspections • The Fraud Prevention Strategy was revised and

approved• Regional Fraud Prevention Committees were established

to facilitate information and strategy sharing among stakeholders.

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Part III: Budget and Expenditure for 2008/09 (Financials)

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SASSA Administration Budget & Expenditure for 2008/09; 2007/08

Economic C lassification Adjusted

Appropriation Actual

Expenditure %

Spent Variance Adjusted

Appropriation Actual

Expenditure Current Payments 4,472,525 4,938,379 110% (465,854) 4,409,538 4,440,715 - Compensation of Employees 1,339,441 1,339,441 100% - 1,120,930 1,079,723 - Goods and Services 3,133,084 3,597,956 115% (464,872) 3,288,608 3,360,992 of which: - * Handling Fees 1,709,631 2,397,371 140% (687,740) 1,848,727 2,235,491 * Communications 64,803 58,215 90% 6,588 65,465 60,253 * Computer Services 276,080 290,363 105% (14,283) 276,777 267,079 * Lease Payments (Office Accommodation) 185,596 196,985 106% (11,389) 200,096 196,837 * Owned & Leasehold Property 36,211 39,896 110% (3,685) 38,568 40,896 * O&L/P/P: Cleaning Services 29,122 29,829 102% (707) 29,321 30,031 * Travel & Subsistence 116,199 109,114 94% 7,085 117,579 108,922 * Venues & Facilities 14,508 11,794 81% 2,714 15,855 11,340 * Other Goods & Services 700,934 464,389 66% 236,545 696,220 410,143 - Interest & Rent on Land - 517 (517) - - - Payment for Financial Assets - 465 (465) - -

Transfer Payments 17,348 17,324 100% 24 722 1,272 - Provincial & Local Government 24 - 0% 24 106 115 - Departmental Agencies and Accounts 13,269 13,269 100% - - - - Households 4,055 4,055 100% - 616 1,157

Payments for Capital Assets 140,419 75,264 54% 65,155 106,954 108,886 - Machinery & Equipment 93,219 70,214 75% 23,005 104,035 107,848 - Software & Intagible Assets 47,200 5,050 11% 42,150 2,919 1,038

TOTAL EXPENDITURE 4,630,292 5,030,967 109% (400,675) 4,517,214 4,550,873

2008/09 2007/08

303030

SASSA Administration Budget & Expenditure for 2008/09 - Comments• The Agency spent 109% of its allocated budget for the

period under review • This represents an overspending of 9% amounting to R

400 million on Goods and Services• The overspending is attributable to inadequate Budget

on Handling Fees as well as the agency’s establishment costs and roll out to district and local offices

• Major overspending recorded on Handling Fees, Lease payments for accommodation, security and cleaning services

• Most of the planned spending on Capital Assets was suspended in view of the financial constraints facing the Agency and in line with the austerity measures implemented across the agency

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SASSA Administration Budget & Expenditure for 2008/09 – Comments

Cont...• In an effort to address the financial challenges

facing the Agency, a request for overdraft was submitted to National Treasury, conditional to the implementation of a turnaround strategy

• National Treasury subsequently responded in support of the turnaround strategy and the establishment of a joint NT,DSD and SASSA task team to oversee the implementation of the strategy

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Total budget allocation administered by SASSA in 2008/09

ADJUSTED BUDGET ALLOCATION

R'000SASSA Administration Budget (SASSA) 4,630

Relief of Distress (DSD) (+R500m) 624Grants Budget Allocation (DSD)Old Age 25,726War Veterans 21

Disability 17,152

Foster Care 3,967

Care Dependency 1,182

Child Support Grant 22,489

SUBTOTAL (-R65m) 70,537

Total Administered by SASSA 75,791

Budget Allocation split

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Budget Allocation: 2008/09 (SRD with in-year shifts)

Grant Type

ORIGINAL BUDGET

ALLOCATION 2008/09Rands

SHIFTING 1

Rands

SHIFTING 221 JAN 2009

Rands

ADJUSTED ORIGINAL

BUDGET FOR 2008/09Rands

Eastern Cape 23,176,552   -1,000,000 22,176,552

Free State 8,647,344   4,000,000 12,647,344

Gauteng 14,960,256 5,000,000 1,000,000 20,960,256

KwaZulu Natal 27,801,900     27,801,900

Limpopo 15,806,088   -4,500,000 11,306,088

Mpumalanga 8,191,356 -3,000,000 2,000,000 7,191,356

Northern Cape 6,094,860 -2,000,000 -500,000 3,594,860

North West 10,038,480   -1,000,000 9,038,480

Western Cape 9,283,164     9,283,164

Total 124,000,000 - - 124,000,000

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Adjustment Estimates: 2008

• As a result of estimated savings in the 2008/09 financial year, driven largely by the lack of adequate administration budget at SASSA, the following additional allocations were approved by MINCOMBUD:

– An additional R500 million allocated to SRD as a result of rising food prices and the recession increasing poverty;

– R65 million was taken away from Social Assistance and shifted to Social Administration to manage the additional beneficiary numbers as a result of the policy decisions announced in January 2008

• Policy Decisions announced in January to be accommodated within the current allocations:

– Old Age Equalisation to 63; – Extension of the CSG to age 15 as from January 2009, to be

accommodated by the savings in the budget;

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Adjustment Estimates: 2008/09 (Social Assistance and SRD)

GRANT TYPE ORIGINAL BUDGET

ALLOCATION(R millions)

ADJUSTED BUDGET

ALLOCATION(R millions)

Old Age 25,726 25,726

War Veterans 21 21

Disability 17,152 17,152

Foster Care 3,967 3,967

Care Dependency 1,182 1,182

Child Support Grant 22,554 22,489

SUBTOTAL (-R65m) 70,602 70,537

Relief of Distress (+R500m)

124 624

TOTAL 70,726 70,161

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Adjustments Budget: 2008/09

(SRD with additional shifts)

Grant TypeADDITIONAL ALLOCATION

SHIFTING 320 JAN 2009

SHIFTING 424 MAR 2009

ADJUSTED ADDITIONAL ALLOCATION

ADJUSTED BUDGET FOR

2008/09

Eastern Cape 100,000,000     100,000,000 122,176,552

Free State 34,500,000   5,000,000 39,500,000 52,147,344

Gauteng 62,000,000 -10,000,000   52,000,000 72,960,256

KwaZulu Natal 119,500,000     119,500,000 147,301,900

Limpopo 80,000,000     80,000,000 91,306,088

Mpumalanga 36,500,000     36,500,000 43,691,356

Northern Cape 12,500,000     12,500,000 16,094,860

North West 33,500,000   -5,000,000 28,500,000 37,538,480

Western Cape 21,500,000 10,000,000   31,500,000 40,783,164

Total 500,000,000 - - 500,000,000 624,000,000

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Expenditure: 2008/09 (Social Assistance and SRD)

GRANT TYPE

ADJUSTED BUDGET

ALLOCATION R millions

EXPENDITURE

R millions

SAVINGS(+)/ DEFICIT (-)

R millions

Old Age 25,726 26,024 -289

War Veterans 21 20 1

Disability 17,152 16,474 678

Foster Care 3,967 3,934 33

Care Dependency 1,182 1,293 -111

Child Support Grant

22,489 22,348 141

SUBTOTAL 70,537 70,093 444

Relief of Distress 624 623 1

TOTAL 71,161 70,716 445

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Expenditure: 2008/09 (Social Assistance and SRD)

GRANT TYPEACTUAL NUMBER OF

BENEFICIARIES PAID PER GRANT TYPE

Old Age 27,287,417

War Veterans 20,785

Disability 16,617,637

Foster Care 3,637,232

Care Dependency 1,221,417

Child Support Grant 58,006,981

TOTAL 106,791,469

TOTAL numbers for March 2009 12,649,698

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Expenditure: 2008/09 (SRD Actual Expenditure and commitments)

Region

BAS Expenditure

as at 31-Mar-09

Regional Commitments

 

Total Expenditure

with Commitments

% Spent

 Saving (+) / Deficit (-)

Eastern Cape 122,704,396 2,901,066 125,605,462 103% -3,428,911

Free State 51,778,526 0 51,778,526 99% -4,631,183

Gauteng 98,616,371 16,685,240 98,749,296 135% -42,341,355

KwaZulu Natal 127,400,769 18,038,684 145,439,453 99% 1,862,446

Limpopo 87,581,817 11,674,635 99,256,452 109% -7,950,365

Mpumalanga 43,238,908 2,847,188 46,086,096 105% -2,394,741

Northern Cape 23,294,022 135,477 23,429,499 146% -7,334,639

North West 25,708,395 114,888 25,823,283 69% 16,715,196

Western Cape 42,758,637 14,340 42,772,977 105% -1,989,814

Total 623,081,846 52,411,518 658,941,049 106% -51,493,364

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Rollover Request for SRD: 2009

• Social Assistance and SRD expenditure highlighted a saving of R445 million.

• Commitments for SRD amounted to R52 million.

• A rollover request for SRD amounting to R52 million was requested to be transferred from the social assistance savings.

• This was fully funded.

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SRD Targeted and Actual Numbers (Additional Allocation): 2008/09

Region Target CategoryTarget

NumberActual Category

ReachedActual Numbers

Reached

Eastern Cape School UniformsSRD Re-issueDisability grant casesSpecial EventsHealth Intervention

106 00012 98110 000

5 0002 500

School UniformsFood parcelsCash paymentsSpecial Events

29 79692 524

1 50327 904

Free State School UniformsFood Parcels

20 00044 796

School UniformsFood parcels

28 76476 000

Gauteng Floods / fires & Undue hardship

63 541 Food vouchers Cash payments

120 1316 796

KwaZulu Natal

Child headed householdsChildren awaiting legal placementOlder persons not yet 60 years oldChildren removed from CSG benefitsFamilies affected by disasterARV & TB Patients

8 00020 000

1 00020 000

1 0003 000

Disasters (42 000)Child poverty(80 000)Adult poverty(25 000)

107 360(food vouchers)

60 807(school uniforms)

1 862(food parcels)

Table Continued on next slide

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SRD Target and Actual Numbers (Additional Allocation): 2008/09

…2Region Target Category Target Number

Actual Category Reached

Actual Numbers Reached

Limpopo School UniformsFood parcels

16 87071 032

School uniforms(cash payments)Food parcels

2 54594 000

Mpumalanga School UniformsFood parcels

13 69028 574

School UniformsFood parcels VouchersBlankets

3 23542 998

2964 109

Northern Cape

Food parcelsSchool Uniforms 

5 0007 246

Food parcelsSchool Uniforms

17 5051 201

North West School UniformsFood ParcelsNormal SRD

10 00015 20812 500

School uniforms(Paid in cash)Food parcels

2 39816 233

Western Cape

Disasters / Undue hardship

6 510 

Cash payments 27 380

Total   505 021  765 347

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Comments on Grants and SRD spending

• Social Assistance expenditure for 2008/09 amounted to R70,093 billion.

• Actual SRD expenditure amounted to R623 million, with commitments amounting to R52 million.

• Social Assistance and SRD expenditure highlighted a saving of R445 million.

• The rollover request for R52 million was approved (in full) for SRD, which was funded from the social assistance savings.

• Total adjusted expenditure for SRD amounted to R675 million for 2008/09 financial year.

PART FOUR Auditor-General Report and

Comments

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SASSA Administration Audit Findings 2009/09

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Auditor General Report and Comments

• The Agency has received unqualified audit report for two consecutive years

• However there are three matters of emphasis for the 2008/09 financial year– Asset Management– Mobile Trucks- Fruitless Expenditure– Irregular Expenditure

• On the grant budget Audit AG raised the following issues– Grant debtors– SRD procurement and irregular expenditure

• Action plans for both Admin and Grant budget have been developed and detailed copies are attached

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Audit Findings on Asset Management

• Assets not physically verified• Asset register not updated• Asset description reflects incorrectly on the asset register • Duplicate barcodes• Assets duplicated in the asset register• Damage/redundant assets not disposed• Assets purchased but not allocated• Different assets with the same asset number • Losses occurred and not recovered or reported• Location of assets• Centralization of asset register

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Asset Management - Progress to date

• The Agency embarked on a nation wide verification of its physical assets.

• Duplicate assets and dummy bar codes were identified and are in the process of being removed from the asset register.

• Assets without bar codes were labelled and were taken onto the asset register

• Incorrect asset description were identified and corrected on the asset register

• Assets purchased were labeled and taken onto the asset register

• Intangible assets were identified and taken onto the asset register

• Redundant , obsolete and missing assets were identified for disposal and write-off.

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Asset Management - Progress to date Cont...

• The data on the current asset register (BAUD SYSTEM) is being cleaned, re-valued in terms of useful life and migrated onto the Accrual asset register to comply with GRAP standards.

• A consultant has been appointed to assist the Agency with the migration from cash to accrual basis of accounting in an effort to ensure compliance to GRAP standards

• The Asset registers are being decentralized to Regional level.

• The exercise will be completed by 31 March 2010.

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Fruitless Expenditure:Mobile Trucks – progress to date

• An investigation , based on AG’s report was conducted during August and September 2009 in Free State, KZN, Northern Cape, Mpumalanga and Pretoria (Centurion) on 19 mobile units .

• Expenditure on 10 trucks revealed fruitless expenditure amounting to an estimated cost of R1,229, 479 million was incurred as fruitless expenditure. Losses of assets estimated at an amount of R298 956.00

• A cost - benefit analysis reflects the costs exceeds the benefits that accrues to the Agency.

• The Financial Misconduct Board to rule on disciplinary action to be instituted against responsible officials

• The Agency is in the process of reducing the number of mobile units• A new bid for maintenance and bandwidth will be executed• Contract management to be improved

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Irregular Expenditure comments to the finding

• Irregular expenditure incurred through procurement related processes by Head Office and the Regions

• The total amount of R69, 718,644.00 was condoned as irregular expenditure in 2008/09.

• This includes expenditure incurred in 2007/08 but condoned during the 2008/09 financial year

• The 2008/09 actual irregular expenditure is 70% less than that incurred during the 2007/08 financial year

• A detailed report is attached

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Irregular Expenditure – Progress to date

• Procurement processes were not followed in the procurement of goods – one quotation obtained as opposed to the required 3 – no approval granted by the delegated authority either

by Bid Adjudication Committee or Acquisition Committees at Regional level.

– Procurement authorized by cost centre managers – no orders issued for goods/service.

• North West region constitutes 69% of the total irregular expenditure in the following:– irregular involving mostly travel and accommodation

(travel agent procured without following due process) – extension of lease contracts were not extended

before expiry as well as leasing of vehicles

53

Irregular Expenditure – Progress to date

• This was addressed through a term contract for travel and accommodation for 2 years.

• End users and SCM officials did not understand procurement process. An in depth SCM training took place during October 2008 to December 2008 with cost centre managers and SCM practitioners throughout SASSA where processes were outlined in terms of procurement processes and delegations.

• A standardized process is now been followed throughout the SASSA.

• Disciplinary action is being imposed against perpetrators .

54

Social Grants Audit Findings for 2008/09

55

Social Relief of distress Audit Findings

Social Relief of distress:• quotation to highest bidders• one quotation received• same beneficiaries for more than one award and no proof of

hardships, no registers kept, no records of no. of meals awarded, no proof of acknowledgement of receipt of uniforms and food

• Overpricing of income invoicing, invoice and quotation not agreeing, no SLA’s in place, no approved price list, individual items not recorded on till slips, allocations exceed the value of the approved stipend

• suppliers non compliance to SCM policies• administrative matters/ application forms not duly completed • Stock levels not maintained• Vouchers books not controlled and monitored

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Social Relief of Distress progress to date

• SASSA is now finalizing the roll out of the voucher system. An expression of interest will be advertised in this regard for proposals from interested service providers to contract with SASSA. This will be applicable in April 2010.

• In the interim, Regions are utilizing the supplier database to obtain quotations from suppliers within their threshold of R500 000.00

• A register is maintained for the issues to beneficiaries. • Procurement prescripts adhered to.• System are in place to ensure matching concept of invoice and till

slip with quotation. • Control measures in place to ensure application forms are duly

completed.• No stock holding, procurement takes place as and when

beneficiaries are identified.• Control measures in place to ensure safeguarding of voucher

books.

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Social Relief of Distress Irregular Expenditure condoned by SASSA -

Region Reason Amount

Eastern Cape Variation order not approved. Supplier delivered more than the required quantity without approval.

14,231.00

Northern Cape Point scoring system not applied correctly

2,466,737.00

Mpumalanga Point scoring system not applied correctly

4,244,401.96

TOTAL 6,725,369.96

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Grant Debtors Audit Findings• No recovery of debts and follow ups, debts incorrectly captured• Prior debts (Period B) and files for Social Development administered

by SASSA • Grants debtor allocation and payments not recorded on BAS• No debt acknowledgement letter on file and other supporting

documents• Debtors with credit balances due to over-recovery of the amount

outstanding as per BAS system• Grant debtors files missing• No evaluation of grant debtors• Debtors listing insufficient information in order to perform

recalculation• No debtors installment plan• Debtors rose at year end but were fully paid• Amount in BAS take on form differs from the amount in the debtor

age analysis

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Grant Debtors progress

• Debt policy implemented, Reconciliation of unallocated receipts is ongoing, engagements with SIU to follow up on defaulting debtors

• By Sept 2009 a total of 49732 debtors at the value of R113 225 374 has been identified for Period A&B.

• A total of 39415 debtors with the value of R92 656 437 has been handed over to the Provincial Departments of Social Development (PDSD).

• The process of handing over is ongoing as other PDSD debtors are identified. The process is being monitored

• Monthly reconciliations are being performed, A reduction from R 16 million in March to R 13 million in September has been recorded

• Debt Policy being updated by DSD to accommodate the acknowledgement of debt

• Monthly reports and analysis conducted and Debt processes and procedures have been developed and are in place as well being implemented

• Status of all paid up debts being reviewed monthly

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PART FIVEChallenges and Concluding Remarks on

2008/09 financial year

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Other Challenges

• SASSA has made tremendous strides in meeting its mandate, however, there are still many challenges confronting the Agency. Some of these challenges relate to: Financial constraints;

• Reduction in outreach programme;• Halting infrastructure acquisition; and• Filling of posts

Impact of shared office accommodation – costed infrastructure plan for SASSA to be developed

Enhancement beneficiary awareness programmes Full compliance to government prescripts, policies and

procedures. SASSA to align itself for broader role in poverty alleviation. The

issue of sustainability must be addressed as reflected in it’s new vision

7373