Title: Establishment of the Agency Presentation to the Portfolio Committee
1Establishment of the Agency Presentation to the
Portfolio Committee
2OUTLINE OF PRESENTATION
- Background
- Institutional challenges and constraints
- The new Service Delivery Model
- Process Map towards Agency Establishment
- Agency business plan and
- Progress
3BACKGROUND
- Providing social assistance grants is a key
government poverty alleviation program, ensuring
income support to over 9.8 million vulnerable
individuals. - The budget this year is in excess of R55 billion,
and will grow to more than R60 billion/annum
during the MTEF - Despite the successes in coverage, major service
delivery problems have been experienced over the
years, resulting in significant fraud, indignity
for the poor, etc. - Government has therefore, decided to shift the
function to the national sphere and the
administration to a specialist, focused Agency
4INSTITUTIONAL CHALLENGES
- The grants system has been facing a number of
challenges, including - Fragmented institutional arrangements
- Lack of uniformity across provinces and
inefficient processes - Unequal distribution and development of human
resources - high transaction costs, with high levels of fraud
- Poor quality of service delivery, with long
distances that some must travel to access
services for some, hours in the queues - These problems often constrain access to social
assistance, yet access should be a Constitutional
guarantee for eligible persons.
5CONSTRAINTS OF CURRENT MODEL
- The problems experienced are intrinsic in the
current delivery model, which displays the
following features - Delivery is through a fragmented institutional
structure - There is a lack of dedicated, focused corporate
support functions - Resource competencies/skills not geared toward
the specialized nature of the service - variable
staffing standards - Disintegrated and inefficient business processes,
duplication and non-value adding procedures - Inadequate financial acumen given the transaction
nature and - Inefficient, insufficient, inequitable
distribution of infrastructure - Less than desirable communication strategies and
modes
6NEW SERVICE DELIVERY MODEL
7FEATURES OF THE NEW MODEL
8Pillars of New Service Delivery Model
- The New Delivery Model was developed, and the key
pillars are - Clear accountability framework (see additional
slide) - Simplified Grants admin. processes that are
customer focused - Integrated delivery, one stop services
- Human resource competencies fitting the Agency
strategy - Financial efficiency
- Accessibility, at lower costs
- Communication strategies and modes that are
proactive - I will give a very brief insight into the key
pillars with more detailed slides at the end of
the presentation.
9Business process changes
The Grants Admin processes will be reengineered
- Fewer steps
- Less people involved
- Technology enabled
- Faster
- Standardised
- Easily verified
10Human resources and Financial efficiency
- Human Resources
- A culture change to a customer-centric focus is
key - Staff structures will be aligned to services A
front office with multi-skilled, customer
friendly staff and a back office ensuring
compliance - Staff development will be service delivery
focused and performance linked to norms and
standards for delivery - Financial Management
- The Agency will reduce the current operational
costs of 6,3, using economies of scale, using
Post Office and banks - Ensuring Compliance to regulations, business
rules will be explicit and current initiatives to
reduce fraud will be given extra impetus through
regular reviews of all grants - Building an effective off-ramp will be an
explicit Agency focus
11Infrastructure and Communication
- Physical Infrastructure People travel long
distances, exceeding 50km, waiting far too long
at pay points. The Agency will focus on - Implementing an optimal model - making use of all
current infrastructure closer to government
services, e.g Home Affairs - Ensuring equal access within 57 km of each
individual - IT Agency will exploit the use of Information
and Communication Technology capturing,
verifying and approval online. - Various methods of accessing the system such as
call centres, the internet, voice recognition
technology, etc. will be implemented - Communication Internal communication will be
less complicated with less red-tape and
bureaucracy - To beneficiaries were saying Dont to call us,
well find you - More detail on the above also provided at the end
12The 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 - Process is well underway to have the Agency fully
operational - The next slide outlines the envisaged state of
fully operational and - The slides thereafter details the progress in the
different areas.
13Envisaged State by April 2006
- Governance framework in place in terms of
relevant laws - Agency top management and staff must be appointed
- Reporting and accountability framework
established - Functions ringfenced/separated in provinces and
national - Entity must have its own financial system and
policies - Agency human resources separated, with policies
in place - Communication internally and externally
operational - Information technology infrastructure in place
- Physical infrastructure available for use
14Governance Framework
- In terms of the governance arrangements, progress
includes - The Agency Act is operational, 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 will be finalised by
end of September - In the absence of a Board, an Advisory Panel was
constituted of high level government and industry
leaders to advise CEO. - National Department in the process of rolling out
structures and staff for oversight
responsibility.
15Management, staff and accountability
- Interviews are underway to appoint executive
management and process will be complete by end of
September Advertisements of remainder of
management and staff posts will be out in next
week - An organizational alignment framework developed
that defines reporting and accountability
framework - CEO will appoint regional or provincial managers
by October to establish that line of
accountability - Operational ringfencing document is currently
being completed to assess reporting at the lower
levels in provinces
16Ringfencing and financial systems
- Ringfencing social security from social
development services is is critical in setting up
the Agency function and All Provinces have
undertaken financial ringfencing to identify
budgets, assets, liabilities and staff for
social grants function - Operational ringfencing is now underway in
provinces, and will give a clear indication of
what is in each province after separation to
constitute a separate Agency province or entity - The Agency financial systems model have been
agreed upon, and system will be in place at
national soon and tested and rolled out in
provinces by January 2006 - Financial management and administration function
outsourced to complement Agency resources - Bank account in place and awaiting PFMA listing
17Human Resources and Communication
- Human resources staff for transfer were
identified, but dispute with labour is a
challenge. - Human resources framework approved by DPSA,
policies drafted and will be submitted for
Ministers approval by end of September - Human resources function headed by a seconded
senior manager and HR function was outsourced to
support Agency staff with Human resource system,
Persal being populated. - Communication head seconded and strategy is
being rolled out. Expertise for branding and
corporate identity to be appointed soon. - IT infrastructure for internal communication
being rolled out - Outstanding matters are communication policies
and processes.
18Information and Technology Infrastructure
- Information Technology infrastructure is being
rolled out at national and will start in
provinces soon, prioritizing NorthWest Province
and Gauteng who are on different systems - The design and development of an Enterprise
Resource planning system that will integrate
Finance, HR and with grants administration has
been initiated - Physical infrastructure At national, the Agency
head office refurbishment is well underway. Each
of the provinces are procuring separate offices,
some up to district level for movement of staff
to new buildings
19Conclusion
- The presentation outlined the current social
grants challenges and the envisaged new service
delivery model - I have provided Members with an outline of the
phases of the Agency establishment, the expected
state by April and progress made to date. - Additional information is submitted in the
additional slides that follow.
20End
21INSTITUTIONAL ARRANGEMENTS
HOW THINGS WILL CHANGE
Communication lines between Agency and DoSD will
remain open
New, independent, specialist Agency focused and
motivated towards service delivery
22VALUE CHAIN AND CAPABILITIES
23HUMAN RESOURCE COMPETENCIES
- The Agency will ensure the following outputs ito
the implementation of the Service Delivery Model - Staffing structures will be better aligned to
core business (services to beneficiaries) - Staff development will be in line with service
delivery requirements (not generic) - An effective performance monitoring system will
be developed that is linked to norms and
standards for delivery that inform the KPIs - A change in culture to a customer-centric focus.
24BUILDING FINANCIAL ACUMEN
- The grants admin system distributes over R55
billion. This is a transaction based institution
that requires financial acumen. - The Agency will ensure the following outputs in
terms of the implementation of the new Service
Delivery Model - The Agency will endeavour to reduce the current
operational costs and the high cost of
transactions by building on economies of scale. - An appropriate payment model that will
redistribute pay points more optimally will be
introduced. (Migration of people to banks where
possible will be considered). - Ensuring Compliance to regulations, business
rules will be explicit. - Recent initiatives to reduce fraud has indicated
that with a minimal investment the returns are
high and the Agency will keep the focus on fraud
reduction. - Data interrogation with the most sophisticated
statically analysis tools would also be
institutionalised
25OPTIMAL USE OF INFRASTRUCTURE
- The findings indicate that some people still
travel distances in access of 50km, and wait long
at pay points. The Agency will focus on the
following - Developing and implementing an efficient and
optimal model (making use of all current
infrastructure before investing in new ones) - Ensuring equal access within 5 7 km of each
individual - Investment in infrastructure will be required to
ensure beneficiaries are paid in dignity. - The migration of significant number of
beneficiaries to banks where available and
generate efficiencies to pay for current
infrastructure shortages
26Enhancing Communication
- Current approaches to communication is limited,
lack innovation and is reactive - The Agency will utilize various and innovative
means of reaching potential and active
beneficiaries - Within in year various mechanisms will be put in
place to proactively go out and find
beneficiaries before they come and apply, for
example the biggest database of school going
children has already been built up at the Agency, - Using sms, email and a virtually integrated
national call centre would facilitate
applications - Using voice recognition technology should enable
regular reviews with burdening beneficiaries
27SERVICE DELIVERY WORK STREAM
- The following was accomplished
- Developed a new Service Delivery Model and three
year Strategic plan covering implementation. - Already initiated a range of integrity
improvement initiatives to reduce risk of
transferring ineligible beneficiaries and data to
Agency. - The Operational ring fencing template for
national will be complete by September. - Developed the optimal delivery network for future
payments of grants based on infrastructure and
service demands
28HUMAN CAPITAL MANAGEMENT
- The following is finalised
- Organisational structures National and Provincial
finalised - The ring fencing of core personnel was completed
(National and Provincial) - The decision on support staff is still
outstanding due to discussions between various
stakeholders - Migration plans for the transfer of staff in
December in process of finalisation - Service providers are appointed to assist with
HCM operational matters (nationally) for 6
months - Permanent positions will be advertised and
filled - Interim policies and procedures in process of
finalisation
29FINANCE WORK STREAM
- The following is finalised
- Interim Funding Mechanism finalised (Conditional
Grants to Provinces) - Interim Systems in place at Head Office (Logis,
Persal, BAS) - Bank account was opened for SASSA Head Office
- Interim policies and procedures drafted
- Ring Fencing at National completed and ring
fencing at Provinces in progress - Costing Model developed
- Cash Flow for Provinces finalised
30ICT, INFRASTRUCTURE COMMUNICATIONS
- The following is finalised
- The IT architecture plan has been developed for
standardisation and service providers for
communication networks are on standby. - The tender for an ERP system was awarded and
implementation will commence soon. - The Agency Head Office is 70 complete (finalised
end of October 2005) and the move to separate
provincial Agency offices has already been
completed in three of the nine provinces. - A tender for Agency branding will be issued soon.