strategic plan presentation to the select committee on social services 02 august 2011

Strategic Plan Presentation to the Select Committee on Social Services

02 August 2011

Outline of the presentation• Purpose• Background• Strategic Priorities • Agency ‘s key focus areas• MTEF Plan – Performance Information• MTEF Plan - Finance Plan• Recommendations

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Purpose• The purpose of this presentation is

– to provide the Select Committee on Social Services with a overview of the SASSA strategic plan 2011/12-2013/14;

– highlight the key projects that will be embarked upon to improve Service Delivery; and

– to request the committee to support the Agency in implementing the Strategic Plan

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Strategic Overview

Mandate The mandate of the SASSA is to ensure the provision of

comprehensive social security services against vulnerability and poverty within the constitutional and legislative framework.

Vision A comprehensive social security service that assists people to be

self-sufficient and supporting those in need.

Mission To manage quality social security services, effectively and efficiently

to eligible and potential beneficiaries effectively and efficiently.

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Strategic Objective

To build a high performance institution which manifests itself by compliance to good governance principles and striving towards operational excellence through continued service delivery improvements to the beneficiaries.

Values Social cohesion Transparency Equity Integrity Confidentiality Customer Care- centered Approach

Strategic Priorities

• The Reform Agenda is underpinned by the following three key priorities:

– Customer care - Centred Benefits Administration and Management System;

– Improved Organisational Capacity; and

– Increased access to Social Security Services

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Background• SASSA is a Schedule 3A Public Entity established in

April 2006 to transform social security in South Africa.

• Since its establishment there has been a steady increase in the demand for services and subsequent increase in the workload of its staff.

• Today over 15 million South Africans of different ages are benefiting from the social assistance programme. The number of grant benefits increased from 10m in 2006 to over 15m in 2010/11

• The Agency deals with an average of at least 5 million transactions per annum, excluding payments. (No is only limited to what is processed on SOCPEN)

Background (cont…)• Although the agency has made significant progress in many areas,

there are areas that still requires improvement

– Significant growth in number of benefits had a negative impact on the administration and management of grants payment

– The social assistance system has remained largely manual and lacks integration.

– The Agency has 60% vacancy rate - (Beneficiary to staff ratio has consistently increased).

– Lack of suitable office accommodation at local level – resulting in staff being crammed in offices and beneficiaries waiting for services outside the buildings

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Key Areas of Focus• Given these key challenges, the Agency has identified the following

as key priority projects:

– Service Delivery Improvement;

– Automation of Grant Management and Administration;

– Finalisation of the Payment Tender

– Development of future Payment System; and

– Improved Audit Report – Towards Clean audit

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Key Areas of Focus (cont…)

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Service Delivery Improvement• In response to service delivery challenges the Agency

will embark on Service Delivery Improvements designed to achieve the following: – Standardised and coordinated services, by multi-

skilled staff, to its customers;– Improvement of conditions at service points – local

offices and paypoints;– ensure a more customer-focused organisation; and– ensure that services are easily accessible to all

citizens, particularly to its rural population.

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The Agency’s strategic intent

Government Strategic Priority

The Agency’s Priorities The Agency’s Strategic Imperatives

Outputs

Building cohesive, caring and sustainablecommunities

Customer-care-centredBenefits Administrationand Management System

Integrated Social Assistance Business System

•Policy and legislation on Social Assistance implemented •Improvement of grant application process•Effective and efficient management of beneficiaries•Effective and efficient management of Grant Payments•Improved management of Disability Grant Services•Automated Core business system implemented

The Agency’s strategic intent cont…

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The Agency’s Priorities

The Agency’s Strategic Imperatives

Outputs

Ensuring effective and efficient public administration


Improved Systems Integrity

Transform the Agency’s culture and enhanced people capabilities

• Integrity Model implemented• Legal services model

implemented• Effective and efficient

management and development of human capital

• Knowledge Management Strategy implemented

• Grant Payment System developed and implemented

• The Agency’s business processes optimised

• Effective and efficient management of facilities and auxiliary support services

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Outputs





•Sound Financial Management across the Agency•Integrated Risk Management Framework implemented•Buildings Infrastructure Strategy

implemented•Transport Management Strategy

implemented•Records Management (Paper-based) System implemented•Integrated Communication and Marketing Strategy implemented•Integrated Monitoring and Evaluation Framework implemented

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The Agency’s strategic intent cont…Government Strategic Priority



Outputs


Building cohesive, caring

and sustainablecommunities



•Service Delivery Model implemented• Framework on Strategic Planning, Operational Planning and Reporting implemented•Integrated Research and Development Strategy implemented•Micro Simulations and Macro economic Model implemented•Strategic Partnerships Strategy

implemented•ICT Business Application Systems

availability maintained and accessible•ERP implemented

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Outputs


Increased access toSocial SecurityServices

Increased access to Social Security Services in the rural and semi-rural areas

•Customer Relations Management Strategy implemented•ICROP Strategy implemented•Stakeholder Management strategy implemented

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2011/12 – 2013/14 MTEF PLAN BRANCH: GRANTS ADMINISTRATION

Output Performance Indicator

Target2011/12

Target2012/13

Target2013/14

Policy and Legislation on Social Assistanceimplemented

Projected total numberof grants in payment including normal growth and the impact of policy changes

15 774 162 projectedtotal number of grants inpayment

16 721 657projectedtotal number of grants inPayment

16 777 649 projected totalnumber of grants in payment

2 729 359 projected totalnumber of Older Person’sGrants in payment

2 786 026 projectedtotal number of OlderPersons’ Grants inpayment

2 844 243 projected total number

of Older Persons’ Grants in payment

1 265 271 projected totalNumber of Disability Grantsin payment

1 289 518 projectedtotal number of DisabilityGrants in payment

1 314 517 projected total number Disability Grants in payment

128 133 projected total numberof Care Dependency Grants inpayment

134 604 projected totalnumber of CareDependency Grants inpayment

141 358 total number of CareDependency Grants in payment

813 Projected total number of

War Veterans Grants in Payment

703 Projected total

number of War Veterans

Grants in payment

608 Projected total number of

War Veterans Grants in payment

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2011/12 – 2013/14 MTEF PLAN cont…BRANCH: GRANTS ADMINISTRATION …


Target2011/12

Target2012/13

Target2013/14


Projected total numberof grants in payment including normal growth and the impact of policy changes

10 976 510 projected total

number of Child Support Grants

in payment

11 303 073 projected

total number of Child

Support Grants in

payment

11 588 704 projected totalnumber of Child Support Grantsin payment

612 651 projected total numberof Foster Child Grants in payment

708 592 projected total

number of Foster Child

Grants in payment

819 853 projected total number of Foster Child Grants in payment

61 425 projected total number

of Grant-in-Aid in payment 65 110 projected totalnumber of Grant-in-Aidin payment

68 366 projected total number of Grant-in-Aid in payment

Projected number ofbeneficiaries receivinggrants impacted on bypolicy changes

CSG extension: 510 069 ofeligible children aged 16-17years

CSG extension:

434 031 of eligible

children aged 17-18

years

% of SocialRelief Distress (SRD)funds disbursed inaccordance withapproved guidelines

95% of Social Relief Distress

(SRD) funds disbursed in

accordance with approved

guidelines

95% of Social Relief

Distress (SRD) funds

disbursed

in accordance with

approved guidelines

95% of Social Relief Distress

(SRD) funds disbursed in

accordance with approved

guidelines

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Target2011/12

Target2012/13

Target2013/14


Internal ReconsiderationMechanism

developedand implemented.

The Internal ReconsiderationMechanism guidelinedeveloped

60% of InternalReconsideration requestsadjudicated within 90 days

80% of InternalReconsiderationrequestsadjudicated within 90days

100% of InternalReconsiderationrequestsadjudicated within 90days

Improvement ofgrant applicationprocess

% reduction ofturnaround time from90 days to 21 days inall regions

80% of new applicationsprocessed within 21 days in allregions

90% of new applicationsprocessed within 21days in allregions

100% of new applicationsprocessed within 21 days in allregions

Effective andEfficientmanagement ofbeneficiaries

Number ofbeneficiaries notifiedof administrativedecisions andreviewed

900 000 beneficiaries notifiedof administrative decisions andreviewed

1m beneficiaries notifiedof administrativedecisions andreviewed

1.2m beneficiaries notifiedof administrativedecisions andreviewed

Number ofbeneficiaries notifiedof administrativedecisions andlife certified

700 000 beneficiaries notifiedof administrative decisions andlife certified

2.3m beneficiariesNotified of administrativedecisions andlife certified

2.4m beneficiaries notifiedof administrative decisions andlife certified

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Target2011/12

Target2012/13

Target2013/14


% of beneficiarieswhose grants are tobe lapsed are lapsedand notified

100% of beneficiarieswhose grants are tobe lapsed are lapsedand notified



% of beneficiary

records with backlogs

in the registry with

respect to the

following that must be

completed:• File transfer• File destruction• Missing files• Loose

correspondence

25% of beneficiary recordswith backlogs in registrycompleted

50% of beneficiaryrecords with backlogs inregistry completed

75% of beneficiaryrecords with backlogs inregistry completed

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Target2011/12

Target2012/13

Target2013/14


Number ofbeneficiaries recordswith exceptionsidentified andresolved:• Incorrect identity numbers• Incorrect grant

types• Incorrect

addresses• Incorrect

banking• details• Unrecorded

deaths• Undeclared

means

20 000 beneficiaries recordswith exceptions identified andresolved

40 000 beneficiariesrecords with exceptionsidentified andresolved

80 000 beneficiaries recordswith exceptions identifiedand resolved

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Target2011/12

Target2012/13

Target2013/14

Effective andEfficientmanagement ofGrant Payments

Amounts of moneyrecovered fromdormant accounts

R50 m recovered fromdormant accounts



Number of pay pointsimproved

300 pay points improved 400 pay points improved 528 pay points improved

Services provided bypayment contractorsmonitored

Quarterly compliance reportson payment contractorservices



Improved management ofDisability Grantservices

% of new disabilitygrant assessmentsquality assured

20% of new disability grantassessments quality assured

20% of new disability grantAssessments quality assured

20% of new disability grantassessments quality assured

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2011/12 – 2013/14 MTEF PLAN cont…BRANCH: GRANTS ADMINISTRATION .


Target2011/12

Target2012/13

Target2013/14

ICROP Strategyimplemented

Number of identifiedrural wards havingaccess to SocialAssistance throughICROP

44 identified rural wardshaving access to SocialAssistance through ICROP



Number ofbeneficiaries in ruralwards having accessto Social Assistancethrough ICROP

65 000 of beneficiaries in ruralwards having access to SocialAssistance through ICROP

50 000 of beneficiaries inrural wards having access toSocial Assistance throughICROP

60 000 of beneficiaries inrural wards having access toSocial Assistance throughICROP

CustomerRelationsManagementStrategy implemented

% of enquiriesattended to

100% of enquiries attendedto



% of complaintsattended within fivedays

100% of complaints attendedwithin five days



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2011/12 – 2013/14 MTEF PLAN cont…BRANCH: INTERNAL AUDIT AND RISK MANAGEMENT


Target2011/12

Target2012/13

Target2013/14

Integrity ModelImplemented

Integrity policyapproved andimplemented

Integrity Policyapproved

Audit report on compliance with Integrity Policy produced For Head Office and 3regions

Audit report on compliancewith Integrity Policy produced for 6 regions

Number of socialgrants verified forvalidity

40,000 social grants verifiedfor validity



Number of Corporatecomplianceinspections conducted

60 Corporate complianceinspections conducted



Number of regionsimplementing Ethicsprogramme

Ethics programme developedand implemented at HeadOffice

Ethics programme developedand implemented in fourregions

Ethics programme developedand implemented in fiveregions

% of fraudcases identified andreferred to lawenforcement agencies

100% identified fraud casesreferred to lawenforcement agencies

100% identified fraud casesreferred for investigationto law enforcement agencies

100% identified fraud casesreferred for investigationto law enforcement agencies

Number of Internal audit reviewsconducted

30 internal audit reviewsconducted



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2011/12 – 2013/14 MTEF PLAN cont… BRANCH: INTERNAL AUDIT AND RISK MANAGEMENT…


Target2011/12

Target2012/13

Target2013/14

Integrity ModelImplemented

Integrated fraudprevention strategydeveloped

Integrated fraudprevention strategydeveloped

% implementation ofIntegrated fraudprevention plan

100% implementation ofintegrated fraud preventionplan

100% implementation ofintegrated fraud preventionplan

Integrated RiskManagementFrameworkImplemented

Risk-mitigatingaction plans developed for allstrategic projects

Risk-mitigating action plansdeveloped for all strategicprojects



Integrated BusinessContinuity Strategydeveloped andapproved

Integrated BusinessContinuity Strategydeveloped andapproved

Integrated BusinessContinuity Strategy reviewed



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2011/12 – 2013/14 MTEF PLAN cont… BRANCH: FINANCE


Target2011/12

Target2012/13

Target2013/14

Sound FinancialManagementacross theAgency

% Reduction of thebudget deficit of R884m

50% Reduction in thebudget deficit of R884m



% reduction ofoverdraft

50% reduction ofoverdraft



% of all eligiblesuppliers paid within30 days

100% of all eligible supplierspaid within 30 days



% staff debts andsocial assistancedebts recovered asper the terms of AoDs

50% staff debts and socialassistance debts recoveredas per the terms of AoDs



% accountsreconciliation andmonth end closure ofaccounts payable,receivable,purchasing, inventory,assets, cash &banking, and payroll

100% accountsreconciliation andmonth end closure ofaccounts payable,receivable,purchasing, inventory,assets, cash &banking, and payroll



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2011/12 – 2013/14 MTEF PLAN cont… BRANCH: FINANCE…


Target2011/12

Target2012/13

Target2013/14

Sound FinancialManagementacross theAgency

% reduction inirregular expenditure

90% reduction in irregularexpenditure in terms of valueand number of 2010/11



% compliance toInventorymanagement

50% of 51 sub inventoriesstores to be centralised

70% of 51 sub inventoriesstores to be centralised

100% centralisation ofinventory stores

Availability of ProjectPlan to migrate from First in First Out(FIFO) to weightedaverage

Available Project plan toconvert the inventory valuationmethod from First in First Out(FIFO) to weighted average

100% Implementation ofweighted average

100% accurate stock values

% compliance with asset

management

100% compliance with the asset

clearing account

100% compliance with theasset clearing account

100% compliance with theasset clearing account

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2011/12 – 2013/14 MTEF PLAN cont… BRANCH: ICT


Target2011/12

Target2012/13

Target2013/14

ICT businessapplicationsystemsavailabilitymaintained and accessible

% of systemsavailable and accessible

97% systems available andaccessible



Automated Corebusiness systemimplemented

Technology roadmap developed andImplemented

Enterprise Architectureencompassing Business,Information, Data Application,Technology, and InfrastructureArchitectures covering theAgency’s core business valuechain developed andimplemented

Business, Information, DataApplication, Technology, andInfrastructure Architecturesimplemented in the ITsystems

Business, Information, DataApplication, Technology, andInfrastructure Architecturesimplemented in the ITsystems

% implementation ofautomated corebusiness systems

Biometric identification

solutions implemented in all

regions to improve fraud

prevention. MIS Registry

modules integrated in all

regions. Scanning on demand

for backlog files implemented

50% of automated corebusiness systemsimplemented (application toapproval automation)

100% of automated corebusiness systemsimplemented (including payment card issuanceservices)

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2011/12 – 2013/14 MTEF PLAN cont… BRANCH: CORPORATE SERVICES


Target2011/12

Target2012/13

Target2013/14

Effective andEfficientmanagement anddevelopment ofhuman capital

Optimal utilisation ofstaff

Skills audit in Finance and InternalAudit conducted against new jobprofiles, report developed and phasedimplementation of recommendations

Skills audit in the remainingprograms of the agencyconducted against new jobprofiles, report developedand phased implementationof recommendations

Matching and placement ofstaff

Revised organisationalstructure in line with theBPR operationalised

Filling of all targeted,Funded vacancies

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2011/12 – 2013/14 MTEF PLAN cont… BRANCH: CORPORATE SERVICES...


Target2011/12

Target2012/13

Target2013/14

Effective andEfficientmanagement offacilities andauxiliary support services

Audit report on thestatus of the buildingInfrastructure developed

Audit report on thestatus of the buildingInfrastructure developed

Effective and efficientmanagement of facilities andauxiliary support services

The Agency’s building infrastructureimprovement plan developed

IntegratedCommunicationand MarketingStrategy implemented

StakeholderManagementStrategy developedand implemented

Stakeholder Management Strategy developed

Stakeholder ManagementStrategy implemented

StakeholderManagementStrategy implemented

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Target2011/12

Target2012/13

Target2013/14

Grant PaymentSystem developed and implemented

Grant Payment system standardised

Grants payment contract/sissued

Centralised paymentdatabase (Enrolment andissuance of the AgencyPayment Card)

Transaction facility for control of grant payments developed

Service Delivery

Model implemented Comprehensiveintegrated ServiceDelivery Modelbusiness plandeveloped and approved

SDM Governance structureestablished

SDM Toolkits developed SDM Implemented

Comprehensive integratedSDM business plan developedand approved

2011/12 – 2013/14 MTEF PLAN cont…BRANCH: STRATEGY AND BUSINESS DEVELOPMENT

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2011/12 – 2013/14 MTEF PLAN cont…BRANCH: STRATEGY AND BUSINESS DEVELOPMENT…


Target2011/12

Target2012/13

Target2013/14

IntegratedMonitoring andEvaluationFrameworkImplemented

Service deliveryMonitoring reports on

pay points and servicepoints produced

Service delivery monitoringreports on pay points andservice points produced



Number ofevaluation surveys conducted

2 evaluation surveys conducted (Impact of CSG, trends analysis of service delivery constraints)

2 Diagnostic surveys

conducted (SRD trends

analysis and implementation

of Disability Grant Model)

5-Year Agency performance review report developed

1 Diagnostic survey conducted

(Foster Child Management)

The Agency’sbusiness processesoptimised

Key businessprocesses reviewed and documented

Macro audit of currentbusiness processes reviewed and documented

Phased implementation of

the recommendation• Organisational

structure• Systems and

processes• Matching and Placing

2011 MTEF Strategic Financial Plan

Agency’s ENE aligned financial plan

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2011/12 Budget allocation per key spendingitems

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Item AllocationCompensation of Employees 1,826,941 Cash handling fees 2,474,619 Information Technology 288,772 Accommodation / Property expenses 235,960 Operating leases 458,303 Maintenance and repairs 53,440 Consultants, contractors & special services 463,469 Operational Expenses 289,637 Transfers and subsidies 19,642 Payments for capital assets 32,873

6,143,657

Budgeted Key Priorities

Priority 2011/12 2012/13 2013/14R’000 R’000 R’000

Cash Payment Contractors’ fees 2,474,619 1,642,819 1,771,219 Compensation of employees 1,826,941 1,927,418 2,023,818 Various contracts for facilities i.e. offices, security, cleaning, fleet, maint. & repairs 606,703 657,251 716,954 Automation of the Grant Business Process 113,000 195,000 206,000SITA services (SOCPEN maint. & Mainframe time) 100,393 109,638 119,315 Medical assessment fees 93,504 98,142 103,049 Bulk Notification (Beneficiary notifications) 63,140 66,297 69,612 Virtual Network Connectivity (VPN) 52,589 57,848 63,633 ICT infrastructure deployment 27,560 28,938 30,385

Local Office upgrade project 15,000 15,750 16,538

Fraud investigations (SIU) 23,000 5,250 5,513 Management Information System (MIS) 20,000 20,000 20,000 New payment model 7,000 55,000 289,138 Internal Review Mechanism 18,144 19,051 20,099 Projects addressing exceptions raised by the AG on grants files management

36,000 22,100 7,205

Business Process Re-engineering 5,000 15,000 - 36

Budgeted key priorities/cost drivers• Cash Payment Contractors’ fees

– reduced disbursement transaction fees negotiated with CPC’s results in a decrease costs for 2011/12

– the implementation of the new payment tender results in projections of further reductions for the years 2012/12

• Automation of the Grant Business– Improving the grant application process, tackling fraud and improving the

application process turn-around time• Payment tender and model

– The allocation for 2011/12 for planning and logistics related to the tender and in 2013/14 for planning and roll-out of model

• Grant Administration– Address AG concerns in the area of grants administration and record keeping. – Caters for projects such as:

• reviews support• registry management• transportation of the files 37

Budgeted key priorities/cost drivers

• ICT infrastructure deployment in new offices and existing offices where required

• Skills Audit and result implementation– Project will be initialized and implemented in 2011/12

• Business Process Re-Engineering– Project will be initialized in 2011/12 with full implementation in 2012/13

• Compensation of Employees– Critical, additional and current posts have been funded to ensure the

acquiring of sufficient and correctly skilled human capital for improved and more efficient service delivery

– Results of Business Process Engineering will be borne as part of CoE in 2013/14

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Agency’s ENE aligned financial plan• SASSA’s budgetary constraints manifested in the accumulated budget

deficit of R884 million

• The budgeted surplus as shown in the table is aimed at reducing this accumulated deficit over the MTEF period

• Coupled with reducing the deficit SASSA have to deal with the expanding scope of work that necessitates implementation of new projects which requires funding

• The Agency’s spending over the MTEF period will have a particular focus on improving the grant application process, and implementing a new social grants payment model that will contribute towards savings in the administration budget

• Baseline prioritisation was done to sufficiently fund new critical projects and align the budget with planned outputs.

– Funds have been redeployed from the cash payment contractors’ fees which will see expenditure on this item declining

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Cost containment measures• Considering the accumulated deficit and the fact that SASA has to ensure efficient

and smooth service delivery to our beneficiaries, a turnaround strategy was initiated• Part of the strategy included the introduction of austerity measures which are

targeted at expenditure that could be curbed without any serious repercussions or disruption of service delivery

• To this end we have seen a positive decline in expenditure on items such as travel, catering etc. The allocation of budgets to these items even took into account these cost containment measures as a guiding principle and thus ensured that the budget on these items is kept to the minimum

• These cost containment measures will continue as part of the strategy to achieve financial stability. We do, however, acknowledge that these cost containment measures might not be sustainable in the long run and might affect service delivery and will call for serious trade-offs when deciding on projects and the budget allocations going forward

• Focus will be a combination of service delivery and on achieving and maintaining financial stability

• The following slide provides an overview of the funded priorities

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Recommendations

• It is recommended that the Select Committee support the Agency in implementing the Strategic Plan for 2011/12-2013/14.

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strategic plan presentation to the select committee on social services 02 august 2011

Documents

social services02

key priorities

key projects

key challenges

social assistance system

key areas of focusgiven

sassa strategic plan

strategic plan presentation