Social Security Agency Presentation to Portfolio Committee

1
Social Security Agency Presentation to
Portfolio Committee
19 October 2005
2
Outline Of Presentation

• Background
• The Journey Map
• SASSA STATE OF READINESS
• Key Milestones
• Legislation
• Staff Issues
• Leadership
• Funds
• Processes Operations
• ICT Infrastructure
• Office Facilities
• Stakeholders Beneficiaries
• PROGRESS REPORT
• Governance Framework
• Key Strategic Priorities
• Key Strategic Themes
• Conclusion

3
Background

• Providing social assistance grants is a key
  government poverty alleviation program, ensuring
  income support to over 9.8 million vulnerable
  individuals.
• The Agency is a Schedule 3(a) public entity
  responsible for administration and payment of
  social grants.

4
Background - Vision

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

5
Background - Mission

• To administer quality social security services,
  cost effectively and timeously using appropriate
  best practices by
• Developing and implementing policies, programmes
  and procedures for an effective and efficient
  social grants administration system
• Paying the right grant amount, to the right
  person, at the right time and at the most
  convenient place
• Delivering innovative, cost effective and
  efficient services to individuals, their families
  and community groups.

6
Background - Core Values

• Promotion and protection of human dignity
• Confidentiality
• Integrity
• Fairness
• Transparency
• Equitability

7
The Journey Map

• Three distinct phases constitute the journey map
• Initial phase prior to April 2005 and was
  concluded with MOU signing and introduction of
  the conditional grants - completed
• Transitional Phase started April 2005, ending
  April 2006. Involves making the Agency
  operational and prepare for function transfer
• Optimisation phase
• Full operationalisation follows the transfer of
  the social grants function to the Agency and,
• Implementing the new delivery model with radical
  improvements in the quality of delivery

8
The Journey Map

• Defined the Day One Readiness Framework
• Defined the minimum expected objectives to be
  achieved on DAY One of SASSA - 1 April 2006
• Developed the Journey Map with key outputs and
  milestones to achieve on Day One
• Allocated the outputs and milestones to
  Workstreams
• Aligned work stream charters plans to Journey
  Map
• Aligned status reporting process to Journey Map

9
SASSA State of Readiness Framework

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

Legal
Finance
HR
ICT
Change comms
Service Delivery
Facilities
Regions
10
SASSA State of Readiness - Day One

• Day One Readiness is defined by the following
  ten objectives that need to be achieved by 1
  April 2006
• 1. The service provider contracts are agreed with
  NDoSD, ceded or renewed, and operations aligned
• 2. Critical regulations are promulgated and
  institutional arrangements are in place
• 3. Critical staff are appointed and trained
• 4. Key leadership team appointed performance
  compacts signed
• 5. Funds for the establishment budget and
  2006/2007 budget are transferred

11
SASSA State of Readiness - Day One

• 6. Critical processes policies are implemented
  within the governance reporting frameworks
• 7. Critical ICT systems infrastructure for
  SASSA operational
• 8. SASSA employees are settled in offices by
  28/02/2006 (whether interim, permanent or
  existing employees)
• 9. SASSA expectations are communicated to
  stakeholders, beneficiaries and employees
• 10. SASSA brand established and SASSA launched

12
Key Monthly Milestones
SASSA ready
Day 1
Day 1 State
Sept
Oct
Nov
Dec
Jan
Feb
Mar
Service providers contracts listed
Contracting Strategy approved planned
Contracting renewal MoU discussions started
Contracts renewed or ceded or MoUs signed
Service provider operations aligned
SASSA verified alignment of service provider
operations
Service providers briefed on future expectations
Service Providers contracts agreed with NDoSD,
ceded or renewed, and operations aligned
Critical Regulations defined
Institutional arrangements defined planned
Critical Regulation changes effected
Critical Regulations promulgated
Stakeholder consultations re regulations
Institutional arrangements verified
Shareholder agreements signed
Critical regulations promulgated Institutional
Arrangements in place
Organisation Structure approved
Critical Staffing plan approved positions
advertised
Critical staff screened interviewed
Staff transferred from provinces disputes
settled
Critical staff appointed
Staff trained
Day 1 Staff Contingency planned
Critical staff appointed and trained
Skeleton executive positions advertised
HO CXOs appointed
Top management appointments continued
HO SMs regional CXOs appointed
Regional SMs appointed
Leadership Alignment workshops SASSA Vision
Strategy
Leadership performance contracts signed
Skeleton leadership team appointed performance
compacts signed
Establishment budget submitted
Establishment funds transferred
SASSA 2006/2007 budget approved Re-allocation of
HO funds
Re-allocation of RO funds
Registration for levies
2006/2007 budget loaded
Trial balance signed off preparations
Funds for Establishment budget 2006/2007 Budget
transferred
Policies approved
HO admin functions established To-be Procedures
drafted
To-be procedures reporting formats approved
Detail process, policy procedure implementation
plans
Functions separated
Governance reporting frameworks in place
Policies actioned
SDI strategy approved Final Readiness
Verification
Mission critical processes policies actioned
within Governance reporting frameworks
HO RO system requirements approved decisions
finalised
HO transversal systems, Socpen and Support in
place
Regional infrastructure critical system
migration started
Regional transversal systems Socpen systems
ready
Regional systems operational infrastructure in
place
SASSA users trained
ICT improvement recommendations submitted
Critical ICT systems infrastructure for SASSA
operational
Office premises identified agreed
Occupation dates agreed Office migration strategy
Detail migration plan Preparation completed
Office Migration started
Office migration completed staff settled
Freeze on Office moves
Freeze on office moves
SASSA staff settled in offices by 28/02/06
(whether interim, permanent or existing)
Stakeholder beneficiary Engagement planned
HO internal comms capacity change network in
place
HO External comms capacity in place
Migration objectives communicated
Appointments communicated
Readiness expectations communicated
SASSA vision strategy communicated
SASSA expectations communicated to stakeholders,
beneficiaries staff
Service provider RFT issued
Service provider appointed
Brand, PR/marketing strategy plan, Visual
Identity Approved
Corporate Identity established
PR marketing continued
PR marketing continued
SASSA launched
SASSA Brand Established Launched
Version 2.0 Finalised Journey Map for Alignment
of Regional and Work Stream Plans
Last edit date 10/10/2005
13
Legislation

• Statutory and Regulatory NDoSD is in the
  process of finalising the specific regulations
  require
• Litigation NDoSD is managing a process of
  evaluating the extent of and impact of litigation
  on social security
• Governance the relevant governance frameworks,
  instruments structures and institutions required
  are being identified and established

14
Staff Issues

• H/O Organisation Structure has been finalised
• Most of the Regional Office Organisation
  Structures have been approved
• Job evaluations 90 complete
• Key staff positions on the organisation
  structures have been identified if need be can
  still absorb support staff if transferred from
  the provincial departments

15
Staff Issues

• Recruitment of the key management and operational
  positions has commenced
• Existing NDoSD Employment Terms and Conditions
  will be used in the interim period
• Persal is being configured to enable new staff to
  be captured on the system
• Migration strategy for provincial staff to be
  finalised by NDoSD 11 November 2005 major
  dependency

16
Leadership

• SASSA strategic plan developed awaiting
  finalisation
• Most H/O Executive posts filled
• Regional Executive Management Positions
  Advertised
• H/O and Regional Office General Management and
  Senior Management positions advertised

17
Funds

• Developed Funds Flow Proposal and ready for
  Treasury approval
• Developed proposed Budget Structure and Standard
  Chart of Accounts
• Decision to remain on BAS as the SASSA financial
  system until implementation of the ERP
  implication need to remain on cash accounting
• Are applying for permission to remain on cash
  accounting for the next financial year
• Financial Ring Fencing of Assets and Liabilities
  not yet complete in all provinces

18
Funds

• Finalising the SASSA establishment budget and
  will submit to NDoSD by end of the month
• Process of refining the FY06/07 operating budget
  in line with the strategic plan
• In process of applying for listing as a Schedule
  3A entity with National Treasury
• In process of finalising required registrations
  e.g. SARS, UIF, etc

19
Processes - Operations

• Delegations were finalised for all SASSA
  functions and submitted to Exco for approval
• Establishment of H/O support functions (Finance,
  IT HR) to be fully operational by 31/10/05
• Provinces completed the Operational Ringfencing
  Checklists and submitted to H/O
• The policies to roll out to regions were approved
  for Finance, HR IT

20
ICT Infrastructure

• Procedures to roll out to regions were drafted
  for Finance, other functions on track to be
  completed by 30/11/05
• Critical systems (BAS, Persal, Logis) will be
  operational at H/O by 28/10/05
• The provincial assessments were completed, and a
  another round to refine the assessment is planned
• A detail plan is being developed in order to
  assess the feasibility to migrate from Walker to
  BAS in North West province before Day 1

21
Office Facilities

• SASSA H/O refurbishment and IT infrastructure is
  in place
• In the process of finalising the agreements for
  regional offices

22
Stakeholders Beneficiaries

• Stakeholder Communications
• Stakeholder map developed
• Internal Communication plan created
• Stakeholder Engagement, Leadership Alignment and
  Communication Approach developed
• Communication Strategy presented at Guiding
  Coalition

23
Change Management

• Change Management
• Change Agent network requirements confirmed and
  template developed for HOSSs
• Need for change agents positioned with HOSSs
• Change Management overview presented at Guiding
  Coalition
• Agenda for Change Agent mobilisation session
  developed and approved and will be distributed
  soon
• Received draft Terms of Reference for Change
  Management Tender
• Editorial process created with regard to the
  development, printing and distribution of the
  SASSA Update

24
Governance Framework

• In terms of the governance arrangements, progress
  includes
• The Agency Act and Social Assistance Act will be
  in force by March 2006
• MOU governs the transitional period, but a
  Business Partnership Agreement was drafted for
  post April 2006
• Reporting framework in terms of Agency Act and
  the relevant PFMA sections has been finalised
  National Treasury
• An Advisory Panel was established with members
  from the public and private sector and
  international experts to advise the Agency
• A Panel of Ministers and Directors General has
  been established
• National Department in the process of rolling out
  structures and staff for oversight responsibility

25
Key Strategic Priorities

• Key Performance Areas are
• Service delivery quality
• Grant process integrity
• Financial Management
• Management of Payment Contractors
• Minimization of fraud
• Organizational capacity

26
Key Strategic Themes

• Ensure a High Performance Institution
• Service Delivery Improvement
• Good Governance
• Building Human Capital
• Sound Financial Management

27
Ensure a High Performance Institution

• Create/Establish a High Performance Institution
• Business Continuity Transition Plan
• Establish offices
• Staffing recruitment, migration and change
  management
• ICT systems/enablers established and in place
• Organisational Structure implemented
• Policies, processes, delegations finalised
• Contracts reviewed, ceded and new contract
  management frameworks established
• Financial Administration in place and funds
  transferred
• Brand established

28
Ensure a High Performance Institution

• Develop and operationalise high performing,
  efficient effective institution
• Implement and integrate a high performance system
  and culture
• Enhance all policies and procedures
• Implement Communications Strategy
• Governance Framework of co-operation

29
Ensure a High Performance Institution

• Consolidate a high performance institution
• Develop consolidation processes with strategic
  review
• Aligned with other outputs (consolidate through
  reviews evaluate, consolidate position and
  re-align)
• Ensure Agency compliance with legislative
  mandates
• Development of uniform training programmes that
  address compliance
• Implement Training Programme
• Setting up structures (RR) to match compliance

30
Service Delivery Improvement

• Improve administration of social security in a
  manner that meets stakeholder expectations
• Design and implement strategy for back office
  integration, including ERP system
• Roll-out priority ICT systems
• Complete revenue and debt management strategy
  and commence implementation
• Develop options for alternative service delivery
  models with other partners
• Commence data improvement quality programme
• Effective forecasting model

31
Service Delivery Improvement

• Improve delivery of social security in a manner
  that meets stakeholder expectations
• Implement norms and standards
• Piloting of Service Delivery Model and commence
  implementation
• Design and introduce standardise contracts and
  guidelines
• Optimise (incrementally) infrastructure to
  improve access to social assistance
• Develop customer relationship strategy
• Introduce call centres
• Develop customer charter for beneficiaries

32
Good Governance

• To ensure a culture of integrity
• Align policies and procedures with relevant
  legislation
• Develop a communication strategy
• Develop a complaints mechanisms
• Appeal mechanism

33
Good Governance

• To ensure good corporate governance
• Develop fraud prevention strategy and commence
  implementation
• Implement structures, systems and procedures in
  line with legislation, King Report on Corporate
  Governance and state owned entity protocols
• Develop a code of conduct and ethics
• Strengthening partnership and collaborations
• Develop maintain risk management plan

34
Building Human Capital

• To recruit, develop, and retain skilled competent
  employees
• Develop and Implement compliant HR Strategies,
  Policies and processes
• Implement job competency profiles linked to new
  Service Delivery model
• Develop new Induction and Performance Management
  System aligned to Organisational Performance
  Model
• Design and implement an optimal HR planning,
  training and development strategy
• Develop and implement a Remuneration Strategy

35
Sound Financial Management

• Improve financial administration
• Complete revenue and debt management strategy
• Commence implementation of financial accounting
  policies and systems
• Delegation of Authority in place
• Budget structure and SCOA for transfers and
  operations

36
Programme 1 Corporate Services

• Management (Office of CEO)
• Overall Strategic Management of the Agency
• Regular reports to principal stakeholders
• Human Capital Management
• Human Resource Strategy and Policies
• Implement new Performance Management System
• Capacity building based on HR development
  strategy
• Office Services
• Provision of office services
• Finalised policies, processes, delegations for
  office services

37
Programme 1 Corporate Services

• Communication
• Develop a communication strategy, including
  mechanism for stakeholder redress and complaints
• Provincial Operational Support
• Development of effective Management Structure
• Contracts ceded, and new contract management
  frameworks established
• Develop Code Of Ethics
• Corporate Governance Structures of corporate
  governance established
• Change Management Change management implemented

38
Programme 2 Service Delivery Assurance

• Internal Audit
• Quality Internal Audit reports on risk management
  and control
• Quality Internal Audit reports on governance
  processes
• Risk and Fraud Management
• Promotion of good corporate governance
• Culture of integrity is promoted
• Complete fraud prevention strategy and commence
  implementation

39
Programme 3 Finance

• Financial Accounting and Administration
• Finalise the transfers of Budgets, Assets
  Liabilities
• Financial capacity in place
• Financial accounting policies and systems
• Delegation of Authority
• Budgeting and Reporting
• Budget structure and SCOA for transfers and
  operations
• Funds flow model finalised

40
Programme 3 Finance

• Procurement and Contract management
• Monitor review the management of the contracts
  for Service Delivery Payment Contractors
• Procurement policies implemented for suppliers of
  goods and services
• Contract management strategy and plans
• Develop the outsourced model for non-core
  services
• Risk Management
• Develop Risk Management plan applicable to Finance

41
Programme 4 Information Technology

• Systems Development
• Implement ERP systems
• Automate Grants processes (ECM)
• Implement Data warehouse
• Socpen Replacement
• Implement a CRM solution

42
Programme 4 Information Technology

• Information Management
• Implementation of e-Government and portal
  services
• Implementation of a Business Intelligence (BI)
  solution
• Provision, utilisation and management of
  information as a strategic resource that ensures
  realisation of the business objectives

43
Programme 4 Information Technology

• IT Operations
• Enhancement and Maintenance of SOCPEN and
  Provision of information technology solutions
• Implementation of interim ERP system (BAS,
  PERSAL, LOGIS)
• Maintenance of Network Hardware and software
• User support and service management
• Acquisition of hardware, software and management
  of contracts and agreements

44
Programme 4 Information Technology

• IT Governance and Architecture
• Develop governance plan Development and
  Implementation of the Master Information Systems
  Plan
• Development of Enterprise IT Architecture,
  principles and standards
• Develop and implement IT organizational structure
• Develop IT Security plan and Risk Management
  Plan (BCP)

45
Programme 5 Service Delivery

• Improve delivery of social security services in a
  manner that meets stakeholder expectations
• Improve service delivery to restore the dignity
  of beneficiaries
• Design and introduce standardised contracts
• Optimise infrastructure to improve access to
  social assistance
• Customer relationship strategy
• Introduce call centres
• Develop customer charter for beneficiaries

46
Programme 6 Strategy and Business Development

• Strategy formulation
• Institutional Policy and strategy formulation
• System of Reporting in place
• Corporate Governance
• Structures of corporate governance established
• Corporate Governance policy guidelines
  implemented

47
Programme 6 Strategy and Business Development

• Innovation and Change Management
• Research and development
• Monitoring and evaluation
• International and national liason
• Collaboration at international and national level
  for exchange of best practices and to explore new
  business opportunities

48
Conclusion

• Status Report to be presented to Cabinet PCC in
  November 2005
• Consultative process with Provinces has been
  initiated
• Agency is working on ensuring State of Readiness
  by 01 April 2006