ANNUAL PERFORMANCE PLAN 2014/2015 - Sassa

 
ANNUAL PERFORMANCE PLAN 2014/2015 - Sassa
ANNUAL
PERFORMANCE PLAN
2014/2015
ANNUAL PERFORMANCE PLAN 2014/2015 - Sassa
TABLE OF
CONTENTS
ACRONYMS AND ABBREVIATIONS                                                     1
FOREWORD BY THE MINISTER                                                       2
OVERVIEW BY THE CHIEF EXECUTIVE OFFICER                                        4
OFFICIAL SIGN-OFF                                                              6

PART A: STRATEGIC OVERVIEW                                                     8
1      SITUATIONAL ANALYSIS                                                    9
1.1    Performance Delivery Environment                                        9
1.2    Organisational Environment                                              9

2.     OVERVIEW OF 2014/15 BUDGET AND MTEF ESTIMATES                           11
2.1    Expenditure Estimates                                                   11
2.2    Relating Expenditure Trends To Strategic Outcome-Oriented Goal          14

PART B: PROGRAMMES AND SUB-PROGRAMMES                                          15
3.     PROGRAMME 1: ADMINISTRATION                                             16
3.1    Strategic Objective(s) for programme 1                                  16
3.2    Programme Performance Indicators and Annual Targets for Programme 1     17
3.3    Quarterly Targets for 2014/15: Programme 1                              20
3.4    Reconciling Performance Targets with the Budget and MTEF: Programme 1   23

4.     PROGRAMME 2: BENEFITS ADMINISTRATION AND SUPPORT                        24
4.1    Strategic Objectives for programme 2                                    24
4.2    Programme Performance Indicators and Annual Targets: Programme 2        25
4.3    Quarterly Targets for 2014/15: Programme 2                              27
4.4    Reconciling Performance Targets with the Budget and MTEF: Programme 2   28

PART C: LINKS TO OTHER PLANS                                                   29
5.1    Links to the Long-Term Infrastructure and Other Plans                   30

PART D: ANNEXURES                                                              31
6.1    Annexure A: Vision Mission And Values                                   32
6.2    Annexure B: Technical Indicator Descriptions                            32
ANNUAL PERFORMANCE PLAN 2014/2015 - Sassa
ACRONYMS &
ABBREVIATIONS
ACB     Automated Clearing Bureau                     M&E      Monitoring and Evaluation

AGSA    Auditor-General South Africa                  MANCO Management Committee

AoD     Acknowledgement of Debt                       MIS      Management Information System

CEO     Chief Executive Officer                       MISS     Minimum Information Security Standard

CDG     Care Dependency Grant                         NPR      National Population Registration

CPS     Cash Paymaster Services                       OAG      Old Age Grant

CSG     Child Support Grant                           OHSA     Occupational Health and Safety Act

DG      Disability Grant                              PFMA     Public Finance Management Act

DSD     Department of Social Development              PMDS     Performance Management and Development

EXCO    Executive Committee                                    System

ENE     Estimates of National Expenditure             SAPO     South African Post Office

GIA     Grant-in-Aid                                  SARS     South African Revenue Service

HANIS   Home Affairs National Identification System   SASSA    South African Social Security Agency

HCM     Human Capital Management                      SIU      Special Investigating Unit

ICT     Information and Communication Technology      SOCPEN Social Pension

ICROP   Integrated Community Registration             SRD      Social Relief of Distress

        Outreach Programme                            UNICEF United Nations Children’s Fund

IGAP    Improved Grant Administration Process         WVG      War Veteran Grant

                                                                                                       1
ANNUAL PERFORMANCE PLAN 2014/2015 - Sassa
FOREWORD BY
THE MINISTER
                                               The South African Social Security Agency touches the lives of most South Africans
                                               through the provision of social assistance. The provision of social assistance is a
                                               Constitutional imperative and the main purpose is to combat poverty, especially
                                               amongst the poor and the most vulnerable members of our society. Since 1994,
                                               the South African government had embarked on an extensive programme
                                               to attack poverty on all fronts. As we celebrate 20 years of democracy, it is
                                               important to reflect on the impact that the social assistance programme has had
                                               on the lives of poor and vulnerable South Africans.

                                               There is extensive empirical evidence that the social assistance programme in
                                               South Africa has been effective in alleviating child and adult poverty amongst the
vulnerable who otherwise would have been subjected to destitution.The number of people receiving social grants has increased
from approximately 2 million in 1994 to approximately 16 million people in 2014, comprising 30% of the population. It is also
important to note that 11 million of these beneficiaries are children; having started from a very low base of approximately 30
000 children in 1998 when the Child Support Grant was introduced. These considerable achievements can be attributed to the
incremental extension of social assistance coverage to include the marginally excluded in line with the Constitution. By putting
money directly in the hands of the poor, particularly women, we have empowered them to make positive life choices that have
improved the lives of South African children, particularly on important matters such as improved nutrition, better educational
outcomes, healthcare and activation of job-seeking behaviour.

In 2013/14, SASSA delivered R113 billion in payments on behalf of government to eligible South Africans.This figure represents
3.2 % of GDP. The Old Age, Care Dependency and Disability Grants increased from R1 010 in 2009/10 to R1 290 per month in
2013/14. There will be a further increase of R80 in 2014/15. The Child Support Grant and Grant in Aid increased from R240 in
2009/10 to R300 per month in 2013/14. Both grant types increased by an average of 6.8 percent from R300 to R310 a month
in 2014/15, with a further increase of R10 at midyear to R320. The increase in the value of social grants was welcomed across
the country, given the difficult economic climate occasioned by high cost of food, petrol and other basic necessities.

In April 2012, SASSA introduced a new biometric based payment system. The new payment system sought to address some
of the challenges that the Agency previously experienced, which included amongst others, fragmentation in the payment system;
locking beneficiaries to specific pay-point and payment dates, long queues, high levels of fraud, and high transactional costs for
payment.   The new payment solution has accrued many benefits for SASSA, the beneficiaries and Government as a whole.
Some of the benefits include improvement in beneficiary experience of services; reduction in the cost for transacting (from
average of R30 to R16.44 per transaction per month), improved data integrity and fraud reduction.

The new biometric-based payment system has also brought many unforeseen challenges that have opened a window of
opportunity for unscrupulous businesses, including loan sharks who prey on the most vulnerable. The agency has been faced
with allegations of unauthorised and unlawful deductions that are made on the beneficiaries’ social grants. Meetings were held
with critical stakeholders in government, the financial sector, and non-governmental organisations with the objective of finding

2
ANNUAL PERFORMANCE PLAN 2014/2015 - Sassa
a workable solution that will serve the interest of the beneficiaries.   A joint task team has been established to assess the issues
adversely affecting the beneficiaries of social grants. One of the immediate interventions is for social grant beneficiaries to
recover monies lost through unlawful and unauthorised deductions. The task team will also explore other measures to end the
real or perceived exploitation of the social grant beneficiaries.

In October 2013, DSD, SASSA and NDA launched the Cooperative Shop Project – a project aimed at combating poverty by
linking social grant beneficiaries (particularly the care givers of children receiving child support grants) and other vulnerable groups
to meaningful socio-economic opportunities. The project is in line with government’s developmental agenda and is an opportunity
for social grant beneficiaries to supplement their income.   However, if the project is successful, social grants beneficiaries who are
workers in the cooperatives could generate incomes and sustainable livelihoods for themselves and their families.

The Department, SASSA and NDA will, over the next year, identify co-operatives that need support with the intention to
develop the skills of the co-operative members to ensure that they are able to produce goods of quality.  Although the co-
operatives may produce a range of goods, this project seeks to equip beneficiaries with the skills to make school uniforms, which
will be sold to the parents of the children attending the specific school, at affordable prices.   In this way the cooperative will
have a sustainable market for its goods.

The government of South Africa, through the Department of Social Development plans to highlight the need for more efficient,
effective and adequate social protection programmes that promote the well-being of vulnerable groups such as children, youth,
women, people with disabilities and older persons. In 2013, I initiated Project Mikondzo, a service delivery improvement initiative,
aimed at improving access to the services of my Department and its Entities in the poorest wards of the country. Through this
project we have been able to identify service delivery challenges particularly in the social development sector. Next year the
focus will be on implementation of intervention strategies to address the challenges that were identified.

When SASSA was established, government’s intent was to implement the full responsibility for the administration and payment
of social assistance, gradually taking responsibility for the payments of other social security benefits.  The new payment system
was designed to serve as a catalyst for the future payment system of all social security benefits.  Significant progress has been
made over the last twenty months in addressing implementation challenges that SASSA previously experienced with the
payment of social assistance. The priority for SASSA over the next five years, 2017 will be to implement a payment system for
social assistance.

Ms Bathabile Olive Dlamini, MP
Minister of Social Development
Date: 6 March 2014

                                                                                                                                      3
ANNUAL PERFORMANCE PLAN 2014/2015 - Sassa
OVERVIEW BY THE CHIEF
EXECUTIVE OFFICER
                                             As we begin the new planning cycle, SASSA will continue through leaps and
                                             bounds to discharge its mandate of ensuring the provision of comprehensive
                                             social security services against vulnerability and poverty within the constitutional
                                             and legislative framework.

                                             Highlights of the past five years
                                             We saw an average increase of 5.3% in the total number of social grants over
                                             the past five years despite a fall in the annual percentage growth from the
                                             2010/11 to 2012/13 financial years.The number of grants in payment increased
                                             from 13 072 173 in 2008/09 to 16 106 110 in 2012/13, reducing poverty
amongst 30% of the population. However the number of grants in payment decreased by approximately 640 000 by
December 2013 as a result of the efficiency gains of the re-registration project As expected, the War Veteran’s Grant has
decreased due to natural attrition. There has also been a gradual decrease in the number of disability grants as a result of
the grant reviews.

Despite the continued increase in the take up of social grants, especially the 3.79% increase in the take up of the Child
Support Grant, studies show that some 2.35 million eligible children continued to be excluded from accessing the Child
Support Grant. The study commissioned by SASSA in partnership with UNICEF to determine the location of the “missing”
children, and reasons for the non-access found that children 0-1 years and those 12- 18 years were the most excluded. The
study actually identified urban and per-urban exclusion more than rural exclusion. Follow up studies for the periods 2012/13
would be undertaken to assess the rate of exclusion and the progress made towards full inclusion.

In 2012, SASSA migrated onto a new payment system that gives beneficiaries access to various payment channels including
point of sale, automated banking facility, cash pay-points, and retail merchants. The key objectives of the new social grant
payment system is to ensure that the right beneficiary is paid the correct amount at the right time and place. At least 10
million SASSA branded biometric payment cards have been issued to all social grants recipients. The card contains both pin
and biometric capability and thus recipients can use it to access payment anywhere, anytime, using multiple payment channels.
In order to improve the conditions under which beneficiaries are served, and the working conditions of employees, the
project on local office improvement and pay point upgrading was initiated in 2012. To this end, 269 local offices have been
improved and over 1058 pay points have been upgraded, inclusive of the upgrading of ablution facilities, purchasing of chairs,
construction of access ramps to improve access for people with disabilities and the erection of fencing.

The close working relationship of SASSA with law enforcement agencies in dealing with fraud and corruption has resulted
in officials suspended from duty and others arrested. In 2012/13 financial year, 52 of the Agency’s officials being suspended
from duty, 25 have been dismissed from the Agency.

4
ANNUAL PERFORMANCE PLAN 2014/2015 - Sassa
Some of the achievements in the past five years include the following:
• Re-registration of 20.7 million beneficiaries including children and procurators;
• Unqualified audit report in the last three years;
• Reduction in litigation cases; and
• Successful implementation of fraud prevention strategies.

Future plans
The key objective for SASSA in the next 3 years is to develop an in house future payment system for social assistance
benefits, which will eventually strengthen the position of SASSA as payment provider for social security benefits. In doing so,
SASSA will optimise the positive lessons from the current system whilst strengthening the capacity for SASSA to achieve
strategic independence as a payment provider. Pursuant to that key objective SASSA will focus on the following:
• Create integrated payment database;
• Massive acquisition of software and hardware for payment;
• Building an ICT payment system; and
• Building Human Resource capacity for payment including massive recruitment of youth.

In conclusion, I would like to acknowledge the invaluable contributions of the Minister, Deputy Minister and the Director-
General of Social Development during our Strategic Planning session.

Ms Virginia Petersen
Chief Executive Officer
Date: 7 March 2014

                                                                                                                          5
ANNUAL PERFORMANCE PLAN 2014/2015 - Sassa
OFFICIAL SIGN-OFF

It is hereby certified that this Annual Performance Plan:

• Was developed by the management of the South African Social Security Agency (SASSA), under the guidance of Minister
     Bathabile Olive Dlamini, MP;

• Was prepared in line with the current Strategic Plan of SASSA.

• Accurately reflects the performance targets which SASSA will endeavour to achieve given the resources made available
     in the budget for 2014/15.

Ms Lorraine Thovhakale		                                           Ms Raphaahle Ramokgopa
Chief Financial Officer (Acting)                                   Head Official Responsible for Strategic Planning

                                              Approved by:

    Ms Virginia Petersen                                            Minister Bathabile Olive Dlamini, MP
    Chief Executive Officer                                         Executive Authority

6
ANNUAL PERFORMANCE PLAN 2014/2015 - Sassa
7
ANNUAL PERFORMANCE PLAN 2014/2015 - Sassa
PART A:
    STRATEGIC
    OVERVIEW
8
PART A:
STRATEGIC OVERVIEW
1      SITUATIONAL ANALYSIS
1.1 PERFORMANCE DELIVERY ENVIRONMENT
South Africa has over the years built a comprehensive social security system that is benefitting millions of South Africans.The
social assistance programme, managed through SASSA, remains one of the critical elements of this social security system.

The strength of the social assistance programme is that it targets people who are not expected to be economically active
namely the elderly and children. Evidence suggests that in the absence of the social assistance programme, poverty and
inequality in South Africa could be higher. Labour force statistics show a trend of increasing unemployment rates and an
increasing number of poor households. All of this combined with other social ills such as substance abuse, increasing number
of orphans, child headed households and abandoned children suggest that the demand on the social assistance programme
is likely to continue.

In the past 5 years SASSA made significant progress in increasing the take up rates of social grants and in improving services
to citizens. The number of grants in payment increased from 13 072 173 in 2008/09 to 16 106 110 in 2012/13, reducing
poverty amongst 30% of the population. However the number of grants in payment decreased by approximately 500 000
by end of 2013 as a result of the efficiency gains of the re-registration project.

Despite the continued increase in the take up of social grants, especially the 3.79% increase in the take up of the Child
Support Grant, studies show that some 2.35 million eligible children continued to be excluded from accessing the Child
Support Grant. The study commissioned by SASSA in partnership with UNICEF to determine the location of the “missing”
children, and reasons for the non-access found that children 0-1 years and those 12- 8 years were the most excluded.
Follow up studies for the periods 2012/2013 would be undertaken to assess the rate of exclusion and the progress made
towards full inclusion.

The convenience of the beneficiary and user friendliness of our facilities was uppermost with the renovations of 269 local
offices country wide, since 2011.The improvements ensured more comfortable and dignified waiting areas, modern ablution
facilities, clear signage, clean walls, floors and proper ventilation.  2014/15 will see SASSA extending these improvements to
include service points. In addition to improvements in local offices, pay-points were improved to provide a dignified service
to beneficiaries. This ensured the provision of shelter, comfortable seats, clean drinking water and appropriate ablution.  The
objective is to eradicate pay-points in the open fields by 2016.

SASSA is especially sensitive to its older beneficiaries and people with disabilities. In addition to implementing a citizen
engagement service at all its offices and service points to fast track services for the old, frail, people with disabilities and the
sick, it has an outreach programme that visits citizens who are unable to get to a service point due to ill health. Citizens that
meet the criteria for outreach services are visited at their homes and a full range of services is provided.

1.2 ORGANISATIONAL ENVIRONMENT
SASSA revised its budget structure for the financial year 2014/15 to two programmes, which cover the following:

•    Programme 1: Administration
The Administration programme provides leadership, as well as management and support services, which include the following
sub programmes: Executive Management, Corporate Services, Financial Management, Information & Communication
Technology, Strategy and Business Development and Office accommodation

•      Programme 2: Benefits Administration and Support
The benefits administration and support programme provides an efficient and effective grant
administration service to implement social protection floors. The programme manages the
full function of grant administration from application to approval and beneficiary
maintenance, benefit payment, customer care, strategic direction
and guidance pertaining to grant operations. It monitors
and evaluates improvements, innovations and

                                                                                                                                  9
PART A: STRATEGIC OVERVIEW (CONTINUED)

service delivery networks and offers strategic guidance and support to ensure that an effective and efficient social security
customer care service is provided to beneficiaries in a dignified manner. It also provides payment vendor and service point
management, formulates grant projections to ensure the adequate availability of funds to be transferred to beneficiaries, and
is responsible for disability administration and management.

In the last financial year (2013/14) SASSA achieved significant milestones in the improvement of delivery of services. The
most important of which was the implementation of a new payment system. This system necessitated the re- registration of
20.7 million beneficiaries, procurators and children in the social grant payment system.

Whilst the re-registration successfully eliminated fraud and enabled timeous life confirmation, it was pioneering in many
areas such as capturing of biometrics for children, and; voice recording to confirm life. The new payment system created
opportunities for beneficiaries to access financial markets that previously precluded them. It improved the organisational
capacity of SASSA to be able to identify and locate its beneficiaries thus enabling SASSA to increase opportunities to its
beneficiaries by making a wider range of services and benefits available to them.   Beneficiaries also had access to  more
options to access social grants namely banks, ATMs, points of sale, merchants, cash etc.

SASSA has more than 10 million SASSA cards in circulation, making it the biggest payment participant in terms of market
share. More than 30% of beneficiaries have a SASSA card indicating an increasing number of people using the banks who
were previously unbanked. The main objective is to develop a new payment system for social assistance benefits, which will
eventually strengthen the position of SASSA as payment provider for social security benefits.

SASSA is responsible for the provision of income support to vulnerable groups through the following types of social grants
and relief:
• Older Persons Grant - grant given to persons 60 years and older.
• Disability Grant - for persons with disability between 18 to 59 years.
• Grant-in-Aid - for both disabled and older people who require care.
• Child Support Grant - for children between the ages 0 to 18 years.
• Foster Child Grant - for children in need of protection and placed in foster care.
• Care Dependency Grant - children who are care dependent, 0-18 yrs.
• Social Relief of Distress - is temporary assistance for 3 months extended to 6 months, in stipulated situations of destitution
   and hardship.

In 2013/14, SASSA delivered R113 billion in payments on behalf of government to eligible South Africans.The Old Age, Care
Dependency and Disability Grants increased from R1 010 in 2009/10 to R1 290 per month in 2013/14. There will be a
further increase of R80 in 2014/15. The Child Support Grant and Grant in aid also increased from R240 in 2009/10 to R300
per month in 2013/14. Both grant types will go up with an average of 6.8 percent from R300 to R310 a month in 2014/15,
with a further increase of R10 at midyear to R320.

The table below represents trends in the total number of grants in payment from 2006 when SASSA was established to end
of financial year 2012/13.

                                          Total number of Grants in Payment
 Grant Type   2006/7             2007/8        2008/9       2009/10      2010/11      2011/12      2012/13
 Old Age         2 195 018          2 229 550     2 390 543    2 546 657    2 678 554    2 750 857   2 873 197
 War Veterans        2 340              1 924         1 500        1 216          958          753         587
 Disability      1 422 808          1 408 456     1 286 883    1 264 477    1 200 898    1 198 131   1 164 192
 Grant In Aid       31 918             37 343        46 069       53 237       58 413       66 493      73 719
 Foster Child      400 503            454 199       474 759      510 760      512 874       536747     532 159
 Care               98 631            102 292       107 065      110 731      112 185      114 993     120 268
 Dependency
 Child          7 863 841           8 189 975       8 765 354       9 570 287      10 371 950      10 927 731     11 341 988
 Support
 Total         12 015 059          12 423 739      13 072 173      14 057 365      14 935 832      15 595 705     16 032 391

10
2. OVERVIEW OF 2014/15 BUDGET AND MTEF ESTIMATES
     2.1 EXPENDITURE ESTIMATES

                                                              Average Expenditure/                                               Average        Expenditure/
                                                         Revised                                 Medium-term
                             Audited outcome                   growth         total:                                              growth            total:
                                                         estimate                             expenditure estimate
                                                              rate (%) Average (%)                                               rate (%)       Average (%)
     R thousand       2010/11   2011/12   2012/13   2013/14       2010/11 - 2013/14      2014/15    2015/16    2016/17               2013/14 - 2016/17
     Administration   1 718 817 1 397 941 1 674 086 1 885 613       3.1%           29.6% 2 230 618 2 331 080 2 381 697                   8.1%              32.0%
     Benefits
     administration   3 457 503 3 875 643 4 108 279 4 427 470            8.6%         70.4% 4 659 120 4 796 314 4 816 541                2.8%             68.0%
     support
     Total expense    5 176 320 5 273 584 5 782 364 6 313 083            6.8%        100.0% 6 889 738 7 127 394 7 198 238                4.5%            100.0%

       Statement of                                                  Average Expenditure/                                        Average        Expenditure/
                                                         Revised                                     Medium-term
         financial              Audited outcome                       growth         total:                                       growth            total:
                                                         estimate                                 expenditure estimate
       performance                                                   rate (%) Average (%)                                        rate (%)       Average (%)
     R thousand          2010/11    2011/12   2012/13    2013/14         2010/11 - 2013/14    2014/15    2015/16    2016/17          2013/14 - 2016/17
     Revenue
     Non-tax revenue         7 669     16 018    4 161       4 454      -16.6%         0.1%      4 695      4 944        5 206           5.3%              0.1%
     Sale of goods and
     services other
                               712        778      748        788        3.5%          0.0%        831        875         921            5.3%              0.0%
     than capital assets
     of which:
     Sales by market
                               712        778      748        788        3.5%          0.0%        831        875         921            5.3%              0.0%
     establishment
     Other non-tax                         15
                             6 957               3 413       3 666      -19.2%         0.1%      3 864      4 069        4 284           5.3%              0.1%
     revenue                              240
     Transfers
                         5 631 387 6 143 657 6 119 770   6 311 048       3.9%         99.9% 6 567 589 6 830 486 7 193 032                4.5%             99.9%
     received
     Total revenue       5 639 056 6 159 675 6 123 931   6 315 502       3.8%        100.0% 6 572 284 6 835 430 7 198 238                4.5%            100.0%

11
12
     PART A: STRATEGIC OVERVIEW (CONTINUED)

     2. OVERVIEW OF 2014/15 BUDGET AND MTEF ESTIMATES
     2.1 EXPENDITURE ESTIMATES (CONTINUED)

       Statement of                                                        Average Expenditure/                                      Average        Expenditure/
                                                               Revised                                     Medium-term
         financial               Audited outcome                            growth         total:                                     growth            total:
                                                               estimate                                 expenditure estimate
       performance                                                         rate (%) Average (%)                                      rate (%)       Average (%)
     R thousand            2010/11    2011/12    2012/13       2013/14         2010/11 - 2013/14    2014/15    2015/16    2016/17        2013/14 - 2016/17
     Expenses
     Current
                           5 157 030 5 263 487 5 763 097 6 291 469             6.9%         99.7% 6 867 043 7 103 655 7 171 258             4.5%            99.7%
     expenses
     Compensation of
                           1 623 468 1 781 597 2 068 437 2 355 405            13.2%         34.6% 2 526 145 2 700 507 2 870 639             6.8%            37.9%
     employees
     Goods and
                           3 472 322 3 407 506 3 625 596 3 870 936             3.7%         63.9% 4 272 517 4 341 497 4 219 681             2.9%            60.7%
     services
     of which:
     Agency and
     support/
                             86 595     94 083      95 624      146 019       19.0%          1.9%    153 904    162 104    162 104          3.5%             2.3%
     outsourced
     services
     Consultants and
     professional            68 497     49 292      15 245        44 633      -13.3%         0.8%     46 485     48 995     48 995          3.2%             0.7%
     services
     Payment
                           2 265 086 2 203 602 1 935 842 2 090 000             -2.6%        38.0% 2 193 025 2 211 551 2 209 460             1.9%            31.7%
     contractors
     Communication          101 976     90 685     107 957      187 100       22.4%          2.1%    323 683    341 162    359 243         24.3%             4.4%
     Computer
                            254 451    202 177     326 451       287 534       4.2%          4.7%    300 491    314 792    330 532           4.8%            4.5%
     services
     Travel and
                             25 114     28 404      31 252       128 803      72.5%          0.9%    137 053    144 397    144 397           3.9%            2.0%
     subsistence
                                 59         74         69            64                                   67         60         79
     Depreciation                                                              2.6%          1.2%                                            7.5%            1.0%
                                441        373        062           270                                  483        712        948
     Interest, dividends
                              1 799         11             2        858       -21.9%         0.0%        898        938        991           4.9%            0.0%
     and rent on land
     Transfers and                19        10        19        21                                       22        23        26
                                                                               3.9%          0.3%                                           7.7%             0.3%
     subsidies                   290       097       266       614                                      695       739       979
     Total expenses        5 176 320 5 273 584 5 782 364 6 313 083              6.8%       100.0% 6 889 738 7 127 394 7 198 238              4.5%          100.0%
     Surplus/(Deficit)       462 736   886 091   341 567     2 419            -82.6%            – (317 455) (291 964)         –           -100.0%               –
2. OVERVIEW OF 2014/15 BUDGET AND MTEF ESTIMATES
     2.1 EXPENDITURE ESTIMATES (CONTINUED)

        Statement of                                                Average Expenditure/                                         Average         Expenditure/
                                                         Revised                                        Medium-term
          financial              Audited outcome                     growth         total:                                        growth             total:
                                                         estimate                                   expenditure estimate
        performance                                                 rate (%) Average (%)                                         rate (%)        Average (%)
     R thousand          2010/11     2011/12   2012/13   2013/14        2010/11 - 2013/14       2014/15   2015/16    2016/17          2013/14 - 2016/17
     Statement of financial position
     Carrying value
                           450 576     476 476   476 960   391 361       -4.6%           36.2%   365 560    348 962    367 457          -2.1%            34.0%
     of assets
     of which:
     Acquisition of
                            24 018     126 734    44 640   255 259     119.9%              7.9%    5 580      5 580      5 876         -71.6%             4.9%
     assets
     Inventory               13 703      8 837    14 765     11 889      -4.6%             1.0%    9 984     10 027     10 558          -3.9%             1.0%
     Receivables and             34         32        22         38                                   40         41         44
                                                                          3.3%             2.7%                                          5.0%             3.8%
     prepayments                646        793       255        196                                  106        951        174
     Cash and cash
                           199 043 1 039 611 1 646 748     978 797       70.1%           60.1%   712 318    518 294    545 764         -17.7%            61.2%
     equivalents
     Total assets          697 968 1 557 717 2 160 728 1 420 243         26.7%          100.0% 1 127 968    919 234    967 953         -12.0%           100.0%
     Accumulated
                         (137 537)     748 433 1 106 776   850 009    -283.5%            33.2%   573 005    365 666    385 046         -23.2%            47.6%
     surplus/(deficit)
     Finance lease            2 533      2 781     2 853      3 502      11.4%             0.2%    3 599      3 605      3 796           2.7%             0.3%
     Trade and other
                           511 095     437 071   673 880   167 641     -31.0%            35.7%   157 342    156 956    165 275          -0.5%            15.0%
     payables
     Provisions            321 877     369 429   377 219   580 756       21.7%           30.9%   587 605    597 043    628 687           2.7%            55.7%
     Total equity and
                           697 968 1 557 714 2 160 728 1 601 908         31.9%          100.0% 1 321 551 1 123 271 1 182 804            -9.6%           118.6%
     liabilities

13
PART A: STRATEGIC OVERVIEW (CONTINUED)

2.2 RELATING EXPENDITURE TRENDS TO STRATEGIC OUTCOME-ORIENTED GOAL
The strategic focus of the South African Social Security Agency remains the administration, management and payment of social
assistance grants.Thus, the bulk of expenditure over the medium term is on compensation of employees and payments towards
the cash contractor who has been contracted to disburse grant monies to beneficiaries. These two items on average make up
about 34.9 per cent and 31.7 per cent of the total budget over the medium term. The agency is investigating options to build its
own capacity in preparation for the new payment tender whereby the Agency will operate as a paymaster.

A key focus point and cost driver of the agency in 2012/13 and 2013/14 was the re-registration project driven by the benefits
administration support programme. The main aim was to ensure data integrity and root out fraud and corruption in the
social grant system and lay the platform for a new payment solution.   All social grants beneficiaries, including children, were
required to re-register for their social grants.  The agency embarked on significant media and communication campaigns to inform
beneficiaries of the re-registration process.

The appointment of a single cash contractor in 2012/13 has not only reduced the cost of paying out social grants from an
average of R30 to a standard fee of R16, but also transformed how social grants are paid out.  All beneficiaries are provided with
a biometric and pin enabled bank card which they can use to withdraw their social grants from ATMs and at points of sale such
as local supermarkets.

Expenditure in the benefits administration support programme is also driven by the statutory requirement that the agency is
obliged to meet.The Social Assistance Act (2004) requires the agency to perform certain activities in relation to the administration
of grants, such as reviewing the status of grant beneficiaries to determine their eligibility status.  A key project under this programme
has been the standardisation project which began in 2011/12. By the end of 2012/13, all but three offices were implementing the
four-step standardised grant process, resulting in 91 per cent of applications being processed within 21 days.

A key initiative under the administration programme has been the Agency’s approach to fraud management. In 2012/13, 78
per cent of fraud cases were investigated and 98 per cent of suspicious grants were verified for validity.  The monetary value of
cases finalised amounted to R59.4 million. In its drive to enhance accessibility of services, the Agency has a significant geographic
footprint of local offices throughout the country. Lease payments therefore make up a sizeable portion of the goods and services
expenditure in this programme. The Agency’s focus will also be on enhancing its service delivery environment through continual
improvements to its local offices and pay points. 310 pay points and 72 local offices will be improved in each year over the MTEF
period. The work of the Agency is driven by ICT costs related to the social pension payment system which is budgeted for under
this programme and makes up the bulk of the spending in computer services. Over the MTEF period, the Agency will continue to
modernise social grant administration and payments through numerous ICT interventions such as automating the grant application
process, biometrically authenticating social pension payment system users, integrating different grant administration systems and
enhancing interfaces with other government departments such as the Department of Home Affairs’ national identification system.

After two years of overspending as a result of personnel related costs, the entity turned around its financial position from an
accumulated deficit in 2010/11 to a surplus of R1.1 billion by end of 2012/13. These costs are expected to decline over the
medium term as the entity invests in the development of its payment systems and technologies, and because of an increase in
filled posts to build its own capacity as the paymaster, doing away with third party payment services.

In a drive to improve service delivery, the Agency embarked on a standardisation of business operations across provinces. This led
to the development of a new capacity model, which resulted in 1 489 prioritised posts being filled in 2011/12, including those of
300 expanded public works programme workers who assist with queue management and enquiries.  There has been a marked
improvement in service delivery to beneficiaries, in particular the turnaround time from application to approval. The majority
of the posts were filled within the benefits administration support programme. At the end of November 2013, a total of 9 313
posts were filled out of 10 188 funded posts, leaving 875 vacant funded posts.  The posts were vacant because of the delay in the
filling of the posts, following a human capacity assessment drive which was undertaken to determine the requisite capacity and
possible trade-offs on the posts.

14
PART B:
PROGRAMMES AND
SUB-PROGRAMMES

            15
16
     PART B: PROGRAMMES
     AND SUB-PROGRAMMES
     3.   PROGRAMME 1: ADMINISTRATION
     Purpose: To provide leadership, management and effective support services to SASSA.

     3.1 STRATEGIC OBJECTIVE(S) FOR PROGRAMME 1

     Strategic     To uphold good                               Effective ICT                 To provide human capital management, facilities and       Effective financial
     Objectives    governance (1.1)                             operations (1.2)              auxiliary services (1.3)                                  Management (1.4)
     Objective     Effective      Fraud,        Reduction       To achieve a fully            To ensure effective Human Ensure a safe and               To provide effective
     Statements    internal       theft and     of litigation   automated and integrated      resource services           secure service delivery       and efficient financial
                   audit          corruption                    social assistance service.                                environment                   Management services
                                  Management
     Baseline      • Functional governance structures           • Social Pensions System      • SASSA had a total of        • SASSA footprint as at     • 2012/13 unqualified audit
                   • Fraud prevention and management              (SOCPEN) enhanced              8 498 filled posts as at     March 2013 includes:        report
                      strategy developed                          to support social grants       end of March 2013.         – 9 provincial offices,     • The transaction costs
                   • Code conduct and ethics developed            application to payment      • More than 70% of the        – 44 District offices,        for payment of grants
                   • The number of litigation cases has           process                        staff complement is in     – 366 local offices;          reduced from average
                      reduced from 15 224 in 2008/09 to         • MIS registry functional        operations focusing on     – 917 service points;         R30 to R16.44
                      81 in 2012/13                               throughout SASSA               core business in the       – 9900 pay points           • Social Grant Debtors
                                                                • ICT infrastructure (wide-      regions                                                  register stand at R260 m
                                                                  area network) have                                        • 259 local offices have      as at January 2014
                                                                  been upgraded from                                          been upgraded to align
                                                                  64 to 512 kilo bytes per                                    with standardised busi-
                                                                  second                                                      ness processes
                                                                • ICT strategy developed
3.2. PROGRAMME PERFORMANCE INDICATORS AND ANNUAL TARGETS FOR PROGRAMME 1

                                                                               Sub-programme: Management
                                                 Strategic Objective: To promote good governance in the management of the Agency
                                                                         Audited/Actual Performance                Estimated                   Medium Term Target
     Objective State-     Performance        Strategic Plan
                                                                                                                 performance
     ments                  Indicator            Target         2010/11            2011/12         2012/13                         2014/15          2015/16     2016/17
                                                                                                                    2013/14
     Effective          Number             100 internal     100%               35 internal     37 internal     20 internal     40 internal      40 internal     40 internal
     internal audit     of internal        audit reviews    implementation audit reviews       audit reviews   audit reviews   audit reviews    audit reviews   audit reviews
                        audit reviews      conducted on of the annual          conducted on conducted on conducted on conducted on conducted on conducted on
                        conducted on       high-risk areas internal audit plan high-risk areas high-risk areas high-risk areas high-risk areas high-risk areas high-risk areas
                        high-risk areas
     Management of      Number of fraud, 180 fraud,              *                  *                 *                 *                 36 fraud, theft    36 fraud, theft    36 fraud, theft
     fraud, theft and   theft and corrup- theft and                                                                                       and corruption     and corruption     and corruption
     corruption         tion awareness corruption aware-                                                                                  awareness          awareness          awareness
                        programmes        ness programmes                                                                                 conducted           conducted         conducted
                        conducted         conducted
                        Percentage        60% of reported        *                  *                 78% of identi- 60% of               60% of             60% of             60% of
                        of reported       fraud, theft and                                            fied fraud cases identified         reported           reported           reported
                        fraud, theft and corruption cases                                             investigated     fraud cases        fraud, and         fraud, and         fraud, and
                        corruption cases investigated                                                                  investigated       corruption cases   corruption cases   corruption cases
                        investigated                                                                                                      investigated       investigated       investigated
     Ensure effective   Litigation        Implementation of      1 944 litigation   249 litigation    89 litigation     70 litigation     Litigation         Litigation         Litigation
     litigation and     reduction         litigation reduction   cases finalised    cases finalised   cases finalised   cases finalised   reduction          reduction          reduction
     contract           measures          measures in                                                                                     measures           measures           measures
     management         implemented       order to achieve                                                                                implemented        implemented        implemented
                                          60% reduction in
                                          litigation cases by
                                          2019
                        Percentage        100% of letters        *                  *                 *                 *                 100% of letters    100% of letters    100% of letters
                        of letters        of demand                                                                                       of demand          of demand          of demand
                        of demand         responded to                                                                                    responded to       responded to       responded to
                        responded to      timeously                                                                                       timeously          timeously          timeously
                        timeously
                        Percentage of     100% of                *                  *                 *                 *                 100% of            100% of            100% of
                        contracts vetted contracts vetted                                                                                 contracts vetted   contracts vetted   contracts vetted
                        within 10 days within 10 days                                                                                     within 10 days     within 10 days     within 10 days
     Improved           Number of         100 beneficiary        *                  *                 *                 *                 20 beneficiary     20 beneficia-      20 beneficiary
     public             beneficiary       education                                                                                       education          ry education       education
     awareness of       education         programmes                                                                                      programmes         programmes         programmes
     SASSA services     programmes        conducted                                                                                       conducted          conducted          conducted
     and products       conducted
                        Number of         100 public             *                  *                 *                 *                 20 public          20 public          20 public
                        public awareness awareness                                                                                        awareness          awareness          awareness
                        programmes        programmes                                                                                      programmes         programmes         programmes

17
                        conducted         conducted                                                                                       conducted          conducted          conducted
18
     PART B: PROGRAMMES AND SUB-PROGRAMMES (CONTINUED)

     3.2. PROGRAMME PERFORMANCE INDICATORS AND ANNUAL TARGETS FOR PROGRAMME 1 (CONTINUED)

                                                                          Sub-programme: Corporate Services
                                                                     Audited/Actual Performance          Estimated                                      Medium Term Target
     Objective      Performance           Strategic Plan
                                                                                                        performance
     Statements       Indicator               Target           2010/11        2011/12         2012/13                                      2014/15           2015/16       2016/17
                                                                                                          2013/14
     Efficient    Key functions       *                    *              *                *          *                              Review of           Revised           40 internal audit
     Human        identified and                                                                                                     functions and                         reviews conduct-
     Resource     resourced                                                                                                          skills gap analysis                   ed on high-risk
     (HR)                                                                                                                                                                  areas
     services     Number of           18 HCM Policies *                   *                    *                  *                  Six (6) HCM         Three (3) HCM Three (3) HCM
     delivered    HCM policies        reviewed                                                                                       Policies reviewed:  Policies reviewed Policies reviewed
                  reviewed                                                                                                           – Staffing
                                                                                                                                        Practices
                                                                                                                                     – Bereavement
                                                                                                                                     – Resettlement
                                                                                                                                     – Performance
                                                                                                                                        Management
                                                                                                                                     – Study Aid
                   Employee labour    Implementation       *              *                    *                  *                  Employee Labour Implementation of Implementation of
                   relations model    of labour                                                                                      Relations model Employee Labour Employee Labour
                   developed and      relations model                                                                                developed          Relations model Relations model
                   implemented
                   Percent of         100% of identified *               *                     *                  *                  100% of identified 100% of identified 100% of identified
                   identified         employees vetted                                                                               employees vetted employees vetted employees vetted
                   employees vetted   each year                                                                                      each year          each year          each year
                   each year
     Ensure a safe Number of local    366 local offices    *             92 local offices      95 local offices   72 local offices   72 local offices    72 local offices   72 local offices
     and secure offices improved      improved                           identified improved   improved           improved           improved            improved           improved
     service       Number of pay      1150 pay points      *             300 pay points        310 pay points     310 pay points     310 pay points      310 pay points     310 pay points
     delivery      points improved    improved                           improved              improved           improved           improved            improved           improved
     environment Number of            366 Local            *             *                     *                  *                  34 local offices    72 local offices   72 local offices
                   Local offices      offices audited                                                                                audited in line     audited in line    audited in line
                   audited in line    in line with the                                                                               with the MPSS       with the MPSS      with the MPSS
                   with the MPSS      MPSS
                   Biometric          Biometric            *             *                     *                  *                  Phased-in           Phased-in         Implementation
                   Access system      systems for staff                                                                              implementation of   implementation of the biometric
                   for SASSA                                                                                                         biometric access    biometric access access systems
                   buildings                                                                                                         to buildings for    to buildings for
                   implemented                                                                                                       staff               staff
3.2. PROGRAMME PERFORMANCE INDICATORS AND ANNUAL TARGETS FOR PROGRAMME 1 (CONTINUED)

                                                                 Sub-programme: Financial Management
                                                                             Strategic Objective
     Strategic      Performance     Strategic Plan        Audited/Actual Performance          Estimated perfor-                        Medium Term Target
     Statements       Indicator         Target       2010/11      2011/12        2012/13       mance 2013/14              2014/15            2015/16        2016/17
     Effective  Average cost of 100 internal       R30          R29           R31                R36                R36                R37                  R36
     Financial  administering      audit reviews
     management social assistance conducted on
                                   high-risk areas
                Percentage of      100% of social _             28% of social 2.58% of social    15% of social      10% of social      20% of social        35% of social
                social assistance assistance debts              assistance    assistance debts   assistance debts   assistance debts   assistance debts     assistance debts
                debts recovered recovered and/                  debts         recovered.         recovered and/or   recovered and/or   recovered and/or     recovered and/or
                and/or written off or written off               recovered                        written off        written off        written off          written off

                                                   Sub-programme: Information and Communication Technology
                                                Audited/Actual Performance   Estimated                                   Medium Term Target
     Strategic    Performance Strategic Plan                                performance
     Statements     Indicator        Target    2010/11 2011/12 2012/13                             2014/15                     2015/16            2016/17
                                                                              2013/14
     Automation Biometric      Biometric      *         *          *       Biometrics    Phased-in implementation Integration of                  Implementation of the
     of systems authentication systems for                                 for           of biometric                biometric systems for        biometric authentication
                systems in     staff and                                   beneficiaries authentication system       authenticating staff and     systems
                place and      beneficiaries                               collected     (SOCPEN – users)            beneficiaries
                implemented                                                and stored in
                                                                           SASSA data
                                                                           base
                Develop and    Digitalised    *         *          *       Manual        Blue-print of the           Phase- one of solution       Digitalised document
                implement      document                                    registry      solution for digitized      implemented                  storage system fully
                solution for   storage system                              system        document storage system                                  operationalised
                scanning and                                                             developed
                storage of
                documents
                Develop and    Single digital *         *          *       Enterprise    Feasibility for replacement                              Development of ICT
                implement      Platform to                                 architecture of legacy system                                          systems based on
                an integrated manage full                                  for digital   (SOCPEN)                                                 outcomes of the feasibility
                end-to-end     value chain of                              beneficiary Payment Architecture          Integration of SASSA         report and Ministerial
                system that    SASSA                                       services      developed                   applications with key        Advisory Committee
                incorporates                                               platform      Integration of internal     external entities            recommendations
                the full value                                             developed     applications with each
                chain of SASSA                                             (excluding    other (e.g. SOCPEN, MIS,
                                                                           Payment)      beneficiary biometric
                                                                                         database, livelink etc)

19
20
     PART B: PROGRAMMES AND SUB-PROGRAMMES (CONTINUED)

     3.3 QUARTERLY TARGETS FOR 2014/15: PROGRAMME 1

                                                                                   Management
                                                       To promote good governance in the management of the Agency
                                                                                                                 Quarterly Targets
     Performance Indicator Reporting Period Annual Target 2014/15
                                                                               Q1                          Q2                        Q3                            Q4
     Number of internal         Quarterly   40 internal audit      10 internal audit reviews 10 internal audit reviews 10 internal audit reviews      10 internal audit reviews
     audit reviews conducted                reviews conducted on conducted on high-risk       conducted on high-risk     conducted on high-risk       conducted on high-risk
     on high-risk areas                     high-risk areas        areas                      areas                      areas                        areas
     Number of fraud,           Quarterly   36 fraud, theft and    9 fraud, theft and corrup- 9 fraud, theft and corrup- 9 fraud, theft and corrup-   9 fraud, theft and
     theft and corruption                   corruption awareness tion awareness conducted tion awareness conducted tion awareness conducted           corruption awareness
     awareness conducted                    conducted                                                                                                 conducted
     Percentage of reported Quarterly       60% of reported fraud, 60% of reported fraud,     60% of reported fraud,     60% of reported fraud,       60% of reported fraud,
     fraud, theft and                       theft and corruption   theft and corruption cases theft and corruption cases theft and corruption cases   theft and corruption cases
     corruption cases finalised             cases finalised        finalised                  finalised                  finalised                    finalised
     Litigation reduction       Annual      Litigation reduction   Assessment report on       Development of training Implementation of the           Implementation of the
     measures implemented                   measures implemented causes of litigation         programme                  training programme           training programme
     Percentage of letters of Quarterly     100% of letters of     100% of letters of         100% of letters of         100% of letters of           100% of letters of
     demand responded to                    demand responded to demand responded to           demand responded to        demand responded to          demand responded to
     timeously                              timeously              timeously                  timeously                  timeously                    timeously
     Percentage of contracts Quarterly      100% of contracts      100 % of contracts vetted 100% of contracts vetted 100% of contracts vetted        100% of contracts vetted
     vetted within 10 days                  vetted within 10 days within 10 days              within 10 days             within 10 days               within 10 days
     Percentage of lodged Bi-annual         80% of lodged cases                               80% of lodged cases                                     80% of lodged cases
     cases successfully                     successfully concluded                            successfully concluded                                  successfully concluded
     concluded
     Number of                  Quarterly   20 public awareness 5 public awareness            5 public awareness         5 public awareness           5 public awareness
     public awareness                       programmes             programmes conducted programmes conducted programmes conducted                     programmes conducted
     programmes                             conducted
     conducted
     Number of beneficiary Quarterly        20 beneficiary         5 beneficiary education    5 beneficiary education    5 beneficiary education      5 beneficiary education
     education programmes                   education programmes programmes conducted         programmes conducted       programmes conducted         programmes conducted
     conducted                              conducted
3.3 QUARTERLY TARGETS FOR 2014/15: PROGRAMME 1 (CONTINUED)

                                                                                  Corporate Services
                                                                                                                       Quarterly Targets
     Performance Indicator Reporting Period Annual Target 2014/15
                                                                                   Q1                           Q2                             Q3                           Q4
     Key functions identified Annual       Review of functions                                                                    Review of functions and
     and resourced                         and skills gap analysis                                                                skills gap analysis
     Number of HCM            Quarterly    Six (6) HCM Policies        1 HCM Policy reviewed        2 HCM Policy reviewed         2 HCM Policy reviewed         1 HCM Policy reviewed
     policies reviewed                       reviewed:                 – Bereavement                – Study Aid Policy            – Employee Labour             – Staffing Practices
                                           – Staffing Practices                                     – Resettlement                  Relations Model
                                           – Bereavement                                                                          – Performance
                                           – Resettlement                                                                           Management
                                           – Performance
                                             Management
                                           – Study Aid
     Employee labour        Quarterly      Employee Labour             Draft Employee Labour        Consultations with Man-       Consultations with labour Approved Employee
     relations model                       Relations model             Relations developed          agement                                                 Labour Relations
     developed and approved                developed
     Employee labour        Quarterly      Employee Labour             100% of labour relations     100% of labour relations 100% of labour relations 100% of labour relations
     relations model                       Relations model             cases finalised within       cases finalised within pre- cases finalised within pre- cases finalised within
     developed and                         developed                   prescribed time frame        scribed time frame          scribed time frame          prescribed time frame
     approved
     % of labour relations Quarterly       100% of labour                                           50% of identified                                           50% of identified
     cases finalised within                relations cases finalised                                employees vetted each                                       employees vetted each
     prescribed time frame                 within prescribed time                                   year                                                        year
                                           frame.
     Number of local           Quarterly   72 local offices            12 local offices improved 20 local offices improved 20 local offices improved 20 local offices improved
     offices improved                      improved
     Number of pay points      Quarterly   310 pay points              36 pay points improved       100 pay points improved 100 pay points improved 74 pay points improved
     improved                              improved
     Number of Local           Quarterly   34 local offices audited    8 local offices audited in   10 local offices audited in   10 local offices audited in   6 local offices audited in
     offices audited in line               in line with the MPSS       line with the MPSS           line with the MPSS            line with the MPSS            line with the MPSS
     with the MPSS
     Biometric Access          Quarterly   Biometric access            Approved terms of            Procurement process                                         Implementation plan
     system for SASSA                      system to SASSA             reference                    completed                                                   developed
     buildings implemented                 buildings procured

21
22
     PART B: PROGRAMMES AND SUB-PROGRAMMES (CONTINUED)

     3.3 QUARTERLY TARGETS FOR 2014/15: PROGRAMME 1 (CONTINUED)

                                                                                  Financial Management
                                                                                                                      Quarterly Targets
     Performance Indicator Reporting Period Annual Target 2014/15
                                                                                     Q1                        Q2                         Q3                         Q4
     Average cost of            Quarterly    R36                          R36                       R36                        R36                        R36
     administering social
     assistance (R/
     beneficiary*12)
     Percentage of social       Quarterly    10% of social assistance 10% of social assistance      10% of social assistance   10% of social assistance   10% of social assistance
     assistance debts recovered              debts recovered          debts recovered               debts recovered            debts recovered            debts recovered
     Percent reduction in Annual             50% reduction in                                                                                             50% reduction in in
     the  audit findings in                  financial management                                                                                         financial management
     financial Management                    related audit findings                                                                                       audit findings

                                                                                            ICT
                                                                                                                      Quarterly Targets
     Performance Indicator Reporting Period Annual Target 2014/15
                                                                                     Q1                         Q2                        Q3                         Q4
     Biometric                   Quarterly   Phased-in                    Due diligence completed Project initiation report    Proof of concept com-      Implementation of
     authentication                          implementation of                                    (planning and design         pleted                     biometric access to
     systems in place and                    biometric access to                                  of infrastructure                                       SOCPEN users
     implemented                             systems                                              requirements)
     Develop and implement       Quarterly   Blue-print of the solution   Due diligence completed Evaluate the architecture    Planning and design        Blue-print of the solution
     solution for scanning and               for digitized document                               for the digitized storage    of infrastructure          for digitized document
     storage of documents                    storage system develop                               system                       requirements               developed
     Develop and implement       Annual      Feasibility for                                                                                              Feasibility report for
     an integrated end                       replacement of legacy                                                                                        replacement of SOCPEN
     to-end system that                      system (SOCPEN)                                                                                              developed
     incorporates the full       Annual      Payment Architecture                                                                                         Payment Architecture
     value chain of SASSA                    developed                                                                                                    developed
                                 Quarterly   Integration of internal      Data and systems        Acquisition of integration Proof of concept com-        Integration of internal
                                             applications with            requirements documented infrastructure             pleted                       applications with
                                             each other (SOCPEN,                                                                                          completed (SOCPEN,
                                             MIS, and beneficiary                                                                                         MIS, and beneficiary
                                             biometric database)                                                                                          biometric database)
3.4 RECONCILING PERFORMANCE TARGETS WITH THE BUDGET AND MTEF: PROGRAMME 1

                                                    2010/11       2011/12       2012/13        2013/14        2014/15      2015/16            2016/17
                                                    Audited       Audited       Audited         Revised        Budget           Budget         Budget
     Rand thousand                                  Outcome       Outcome       Outcome     Approved budget   estimate         estimate       estimate
     Administration                                   1,718,817     1,397,941     1,674,086       1,885,613      2,230,618        2,331,080       2,381,697
     Economic classification
     Current payments                                 1,699,528     1,392,808      1,669,863      1,876,262     2,220,578        2,321,989       2,370,956
     Compensation of employees                          590,440       529,370        606,189        781,546       846,969          918,748         976,629
     Goods and services                               1,024,734       775,220        989,005      1,029,589     1,305,228        1,341,591       1,313,389
     Transfers and subsidies                             19,290         5,133          4,222          9,350        10,040            9,091          10,741
      - Corporate Services                              425,306       387,371        312,159        456,540       482,522          511,899         544,507
     Current payments                                   406,016       387,371        310,585        452,936       478,725          508,098         540,707
     Compensation of employees                          119,360       128,223        134,902        236,425       251,556          267,656         284,518
     Goods and services                                 225,417       194,427        105,849        151,383       158,788          167,371         175,250
     Transfers and subsidies                             19,290             -          1,574          3,603         3,798            3,800           3,800
       - Executive Management                           354,999       224,696        344,187        419,734       445,059          471,922         499,733
     Current payments                                   354,999       223,107        342,398        416,982       442,159          468,866         496,727
     Compensation of employees                          192,631       138,802        208,667        265,971       282,994          301,105         320,075
     Goods and services                                 162,368        84,305        133,731        151,011       159,166          167,761         176,652
     Transfers and subsidies                                  -         1,589          1,788          2,751         2,900            3,057           3,006
      - Finance                                         343,522       325,275        281,240        350,130       371,121          393,378         408,384
     Current payments                                   343,522       325,275        281,240        347,725       368,586          390,707         405,568
     Compensation of employees                          196,214       178,089        169,939        208,371       221,707          235,896         250,757
     Goods and services                                 147,308       147,186        111,301        139,354       146,879          154,811         154,811
     Transfers and subsidies                                  -             -              -          2,405         2,535            2,672           2,816
       - Information and Communication Technology       310,179       198,972        248,798        321,374       339,286          358,200         378,038
     Current payments                                   310,179       198,972        248,394        320,816       338,698          357,581         377,163
     Compensation of employees                           46,465        48,466         46,298         55,733        59,300           63,095          67,070
     Goods and services                                 263,715       150,506        202,096        265,083       279,398          294,485         310,093

23
24
      PART B: PROGRAMMES AND SUB-PROGRAMMES (CONTINUED)

     3.4 RECONCILING PERFORMANCE TARGETS WITH THE BUDGET AND MTEF: PROGRAMME 1 (CONTINUED)

                                                          2010/11            2011/12            2012/13              2013/14          2014/15        2015/16                2016/17
                                                          Audited            Audited            Audited               Revised          Budget             Budget             Budget
     Rand thousand                                        Outcome            Outcome            Outcome           Approved budget     estimate           estimate           estimate
     Transfers and subsidies                                         -                  -                   404               558              588               620                 875
      - Office Accomodation                                    235,177            186,482               314,798           450,655          487,279           523,872             553,773
     Current payments                                          235,177            186,482               314,798           450,655          487,279           523,872             553,773
     Compensation of employees                                       -                  -                     -                 -                -                 -                   -
     Goods and services                                        235,177            186,482               314,798           450,655          487,279           523,872             553,773
     Transfers and subsidies                                         -                  -                     -                 -                -                 -                   -
      - Strategy and Business Development                       49,634             75,266               167,373           137,179          145,037           153,349             156,573
     Current payments                                           49,634             75,125               167,204           136,971          144,818            53,118             156,330
     Compensation of employees                                  35,771             35,789                39,893            45,046           47,928            50,996              54,209
     Goods and services                                         13,863             39,336               127,311            91,926           96,890           102,122             102,122
     Transfers and subsidies                                         -                141                   169               208              219               231                 243

     4    PROGRAMME 2: BENEFITS ADMINISTRATION AND SUPPORT
     Purpose: To provide a grant administration service and to ensure that operations are integrated within SASSA

     4.1 STRATEGIC OBJECTIVES FOR PROGRAMME 2

      Strategic      To improve the effectiveness and efficiency of the administration of the social assistance programme
      Objectives
      Objective      To ensure that eligible beneficiaries receive their benefits timeously with          To institutionalise the payment system for social assistance within SASSA
      Statements     respect to all social assistance benefits
      Baseline       • 10 633 186 million beneficiaries receiving 15 644 273 social grant benefits as     • Establishment of credible payment database is being finalised:  Improved the
                       at December 2013.                                                                    payment database. through the Re-registration of 20.7 million individuals
                     • The take –up rates for new grants is on average 1 200 000 per annum                  completed by end of May 2013
                     • There is an attrition rate of at least 500 000 beneficiaries per annum due to      • 10 million SASSA branded biometric payment cards (endorsed by
                       death, reviews and voluntary cancellations                                           MasterCard) issued.
                     • Research indicates that 2.35m eligible children under the age of 18 are            • SASSA payment MasterCard has transformed the industry by ensuring more
                       excluded from the CSG.                                                               people who were previously unbanked are integrated in mainstream economy.
4.2 PROGRAMME PERFORMANCE INDICATORS AND ANNUAL TARGETS: PROGRAMME 2

                                                                   Programme: Benefits Adminstration and Support
                            Strategic Objective: To improve effectiveness and efficiency of the administration of the social assistance programme
                                                                           Audited/Actual Performance                 Estimated                   Medium Term Target
     Objective              Performance        Strategic Plan
                                                                                                                    performance
     Statements               Indicator             Target          2010/11         2011/12          2012/13                           2014/15          2015/16      2016/17
                                                                                                                       2013/14
     To provide        Projected number
     social assistance of new social
                                                     5 600 000        1 372 686        1 199 940        1 200 000        1 200 000       1 100 000        1 100 000        1 200 000
     to eligible       grants applications
     beneficiaries     processed
                       Projected number      17 120 000 by
                       of social grants in   end of 2018/19          14 935 832       15 595 705       16 069 007       16 582 582      16 052 000       16 309 000       16 520 000
                       payment
                       Projected number      1 000 000 social
                       of social relief of   relief of distress
                                                                              *                 *               *                *          160 000          160 000          180 000
                       distress applications awards
                       awarded
                       Progressive increase 75% of eligible
                                                                                                                  52% of eligible
                       in the take-up rates children between
                                                                                                                  children below
                       of Children’s grants 0 - 1 year                      48%               50%                                               55%              57%              60%
                                                                                                                  1 accessing
                       for eligible children accessing social
                                                                                                                  social grants
                       below 1 year          grants by 2019
                       Percentage of new Progressive            58% of           89% of           90% of          90% of           90% of           95% of           100% of
                       grant applications    reduction in the new grant          new grant        new grant       new grant        new grant        new grant        new grant
                       processed within 21 turn-around time applications         applications     applications    applications     applications     applications     applications
                       working days          for processing of processed         processed        processed       processed        processed        processed        processed
                                             grant applications within 21 days within 21 days within 21 days within 21             within 21        within 15        within 10
                                             (target to reach                                                     working days     working days     working days     working days
                                             5 - 10 days by
                                             2019)

25
26
     PART B: PROGRAMMES AND SUB-PROGRAMMES (CONTINUED)

     4.2 PROGRAMME PERFORMANCE INDICATORS AND ANNUAL TARGETS: PROGRAMME 2

                                                                Programme: Benefits Administration and Support
                              Strategic Objective: To improve effectiveness and efficiency of the administration of the social assistance programme
                                                                        Audited/Actual Performance              Estimated                      Medium Term Target
     Objective                Performance        Strategic Plan
                                                                                                              performance
     Statements                 Indicator            Target      2010/11         2011/12         2012/13                         2014/15             2015/16      2016/17
                                                                                                                 2013/14
     Develop             Credible payment      Centralised                                                  Biometric       Biometric           On-going          Interactive
     SASSA               database developed credible                                                        data of 20.7    Data clean-         biometric         database
     in-house            and operationalised database                                                       million people up (including        enrolment of
                                                                           *                *             *
     payment                                   created within                                               collected       investigations) new beneficiaries
     capacity                                  SASSA                                                        and stored in                       taken over by
                                                                                                            SASSA                               SASSA
                         Options for SASSA SASSA’s                                                          Draft Proposal Detailed Plan Payment                  Piloting of the
                         payment system        payment system                                               on SASSA        on payments         Control and       new payment
                         investigated          developed                   *                *             * payment model system for            reconciliation    system
                                                                                                                            SASSA               capability system
                                                                                                                                                developed
                         Opportunities         Payment                                                      Research        Payment             Consultative      Payment
                         for new Payment       distribution                                                 report on       distribution        process on        distribution
                         distribution channels channels piloted                                             the feasibility channels            potential new     channels piloted
                         investigated          and rolled out                                               options for     investigated/       social grants
                                                                                                            the SASSA       researched          payment
                                                                                                            payment system                      distribution
                                                                           *                *             *                 Partnerships        channels
                                                                                                                            established to
                                                                                                                            facilitate linking
                                                                                                                            of SASSA
                                                                                                                            payment
                                                                                                                            system to other
                                                                                                                            benefits

     2
         The objectives and indicators set are linked to automation in programme 1.
You can also read
NEXT SLIDES ... Cancel