REPORT OF THE PORTFOLIO COMMITTEE
ON SOCIAL DEVELOPMENT ON THE BUDGET VOTE 19, THE STRATEGIC PLANS AND THE ANNUAL
PERFORMANCE PLANS OF THE DEPARTMENT OF SOCIAL DEVELOPMENT AND ITS ENTITIES FOR
2014/15, DATED 09 JULY 2014
The Portfolio Committee on Social Development having considered and
deliberated on the Budget Vote, the Annual Performance Plans and the Strategic
Plans of the Department of Social Development and its entities on 02 July 2014,
wishes to report as follows:
1.
Introduction
The Committee’s mandate as prescribed by the
Constitution of South Africa and the Rules of Parliament is to build an
oversight process that ensures a quality process of scrutinising and overseeing
government’s action that is driven by the ideal of realising a better quality
of life for all people of South Africa.
The following institutions briefed the Committee: the Department of
Social Development (DSD); the South African Social Security Agency (SASSA) and
the National Development Agency (NDA). The department also briefed the
Committee on the additional functions relating to programme 3 (Children’s
Rights and Responsibilities) and 4 (Rights of People with Disabilities) of the
Department of Women, Children and People Disabilities (DWCPD).
2. Presentation by the department
The Deputy Minister, Ms H Bogopane-Zulu gave an overview of the
department’s performance and highlighted that the department will be undergoing
transformation brought about by the
incorporation of programme 3 and 4 from DWCPD. The department will be in
a position to brief the committee on the details of the transformation after
the proclamations on the restructuring and content changes have been made.
Mr C Pakade, Director-General, informed the Committee that the APP was
drafted based on the Medium Term Budget Policy Statement (MTBPS). The APP of
the department has been kept separated from that of Programme 3 and 4 of the
Department of Women Children and People with Disability. The APP was aligned
with the National Development Plan (NDP) and the Government Outcomes. The APP
was particularly linked to the new Outcome 13 which calls for “an inclusive and
responsive social protection system. This outcome links with other outcomes,
therefore the department’s APP had to be all inclusive. Social protection floor
encompasses income, assets, basic services, food security, Early Childhood
Development (ECD), access to quintile 1, 3 and 4 schools and multi-dimensions
of poverty. The department with its counterparts is working on formulating a
definition of social protection floor for South Africa. The department will be
driving the integration of the delivery of the social protection services under
the Social Protection programme.
The Minister of Social Development has
been appointed as a leader coordinator for Outcome 13: Social Protection. A
number of engagements have been taking place in preparation for the Medium Term
Strategic Framework chapter. Various sector departments have been consulted
leading to the drafting of the Medium Term Strategic Framework. This includes
workshops with provincial counterparts and leadership within the South African
Social Security Agency [SASSA] and the National Development Agency.
The
department has the following programmes:
·
Programme 1: Administration.
·
Programme 2: Social Assistance.
·
Programme 3: Social Security Policy and
Administration
·
Programme 4: Welfare Services Policy
Development and Implementation
Support
·
Programme 5: Social Policy and Integrated
Service Delivery.
3.
The vision and mandate of the department
The vision
of the department is that of a caring and integrated system of social
development services that facilitates human development and improves the
quality of life.
The department derives its mandate from several pieces of legislation
and policies, including the White Paper for Social Welfare (1997) and the
Population Policy (1998), which sets out the principles, guidelines,
policies and programmes for developmental social welfare in South Africa. The
White Paper for Social Welfare has provided the foundation for social welfare
in the post-1994 era.
The constitutional mandate of the department is to provide sector-wide
national leadership in social development by developing and implementing
programmes for the eradication of poverty and social protection and development
amongst the poorest of the poor and most vulnerable and marginalized.
The department’s mission is “to ensure the provision
of comprehensive, integrated, sustainable and quality social development
services and create an enabling environment for sustainable development in
partnership with all those committed to building a caring society.
Strategic goals
The key sector priorities over the Medium Term Strategic Period
are:
·
Reforming
the social welfare sector and services to deliver better results.
·
Improving
the provision of Early Childhood Development. All children should enjoy
services and benefits aimed at facilitating access to nutrition, health care,
education, social care and safety.
·
Deepening
social assistance and extending the scope for social security.
·
Strengthening
community development interventions.
·
Establishing
the social protection systems to strengthen coordination, integration,
planning, monitoring and evaluation of services.
·
Improving
household food and nutrition.
4.
Programme
performance
4.1 Programme 1: Administration
The purpose of Programme 1: Administration is to
provide leadership, management and support services to the department and the
sector. The total allocation to this programme is R275.1 million,
marking a 3.23 per cent increase in nominal terms and a decrease of -2.80 per
cent in real terms. This vacancy
rate is mainly attributed to posts being temporarily suspended as a result of
departmental restructuring. In terms of economic classification, the bulk (99.1 per cent) of Programme 1’s budget goes toward
current payments which include compensation of employees (R152.7million) and
goods and services (R119.8 million).
4.1.2 International
Relations
The strategic
objective of this sub programme is to have effective participation in key
bilateral and multilateral initiatives. For 2014/15 the department has targeted
to sign four bilateral agreements. In addition the department plans to
facilitate participation in six international bodies and will also coordinate
reporting on the implementation of resolutions.
4.1.3 Stakeholder Management
In terms of improving
relations with development partners and other stakeholders in support of
service delivery, the department plans to establish partnership with eight (8)
stakeholders that support the department’s initiatives and projects.
4.1.4
Strategy Development and Business
The department is
targeting to finalise the Bill on Social
Development during this current year (2014/15). In terms of risk management, a
Risk Management Report will be produced by November 2014.
4.1.5 Communications
With regards to the
improvement of public access to the Department’s information and services, the
Department has targeted itself to reach 55 000 people via the DSD website
and social media. Furthermore in terms of proactive media engagements the Department
will generate free publicity worth R2.2 million. In addition 27 million people
will be reached through marketing and advertising initiatives.
4.1.6 Human
Capital Management
The department will
reduce the vacancy rate by 10% in 2014/15. A Human Resource Plan (HRP) will be
developed and approved during the current year.
4.1.7 Performance
Monitoring
The Department is
planning to update social development sector monitoring and evaluation system
and align it to outcomes based model in 2014/15.
4.1.8 Performance and expenditure
trends
The
bulk of this programme’s spending over the medium term goes towards
compensation of employees, which constitutes on average 5.5 per cent of the
budget, and operating leases for office accommodation, which constitutes on
average 8.8 per cent of the goods and services allocation.
Spending
on this programme increases steadily over the seven-year period, mainly due to
the building of capacity in the oversight function of the department in the
Internal Audit sub-programme.
In
addition to corporate services responsibilities, the Administration programme
coordinates the department’s strategic vision and provides overall monitoring
support through the Department Management sub-programme.
4.2 Programme 2: Social Assistance
The
purpose of this programme is to provide social assistance to eligible beneficiaries in terms of the
Social Assistance Act (no. 13 of 2004) and its regulations.
The strategic objective set by the department on this programme is
to extend the provision of social assistance to approximately 16.6 million
eligible individuals by 2014.
Performance and expenditure trends
The Child Support, Old Age and
Disability Grants make up the bulk of the programme’s expenditure over the
medium term, and reflect government’s commitment to supporting the most
vulnerable in society by providing income support.
The number of the social assistance
grant beneficiaries decreased from 15.9 million in March 2013 to 15.6 million
as at December 2013 due to the re-registration process where ineligible
beneficiaries were removed from the grant system.
Expenditure on the social assistance
grants is expected to increase over the medium term mostly due to the inflation
related adjustments to the grant values of the individual grant types and a
slight growth in beneficiary numbers over the period.
The department expects that the number
of beneficiaries will increase to approximately 16.6 million by the end of
March 2017. The number of elderly persons receiving the Old Age Grant is
projected to grow at 3 per cent each year over the medium term, in line with
population growth for that age cohort.
4.3 Programme
3: Social Security and Administration
The purpose of this
programme is to provide for social security policy development administrative
justice and the administration of social grant reduction of incorrect benefits
payments.
4.3.1 Social
Security Policy and Development
The strategic
objective of this sub-programme is to provide an effective and efficient social security system
that protects poor and vulnerable people against income poverty by 2017. The
department has committed itself to ensure adherence to the norms and standards
for the social assistance programme. It
aims to produce three oversight reports on adherence to norms and standards for
the social assistance programme by 2014/15 financial year. A performance
indicator set for this objective is to have a discussion paper on the removal
of social grant means test and the baseline to this is a research on the impact
of social grants. The department will
complete a discussion paper on the universalisation of the Older Person’s Grant
as well as the universalisation of the Child Support Grant.
Another
strategic objective under this programme is to provide uniform and coherent
information on social expenditure by March 2017. The performance indicator for this target is
the publication of the Social Budget Bulletin in 2016/17 financial year. The department aims to publish and launch the
Social Security Review within the 2014/15 financial year.
4.3.2 Appeals
Adjudication
In terms of Appeals
Adjudication, the department’s objective is to provide an effective, efficient
and accessible social assistance appeals service for beneficiaries of social
assistance by March 2017.
The high level outputs set
for this sub-programme are to ensure that 100 per cent of appeals are
adjudicated within 90 days. For 2014/15 financial year the department has estimated to achieve the
set strategic goals of an effective, efficient and accessible social assistance
appeals service by adjudicating 60 per cent of appeals lodged within 90 days of
their receipt. It will also
implement an Integrated Appeals Business Information System.
4.3.3 Inspectorate for Social Security
The strategic
objective of the sub-programme is to
establish an Inspectorate for Social Security to ensure the integrity of the
Social Assistance Framework and Systems by March 2019. By the end of the 2013/2014 financial year,
the department has set itself a target to approve a policy framework for social
security inspection.
Performance and expenditure trends
The spending focus over the medium term
will continue to be on making transfers to the South African Social Security
Agency as the grants administering entity. The programme transfers 98.6 per
cent of its allocation to the Agency for it to improve its fraud management
system and ensure that social assistance grants are paid to an estimated 16.6
million beneficiaries by 2016/17.
Social grant administration costs
constitute 6.4 per cent of the budget for social assistance grants, as
reflected in spending in the Social Assistance programme in 2010/11, but are
expected to decline to 5.2 per cent in 2016/17, partly due to the efficiencies
from the new payment contract implemented in 2012/13.
The medium term period also provides
for the implementation and roll-out of an integrated appeals business
information system which is expected to speed up turnaround times by increasing
the proportion of appeals adjudicated within a period of 90 days to 70 per cent
in 2016/17.
4.4 Programme 4: Welfare Services Policy Development
and Implementation support
The purpose of this programme is to create an enabling
environment for the delivery of equitable developmental welfare services
through the formulation of policies, norms and standards, and best practices.
It is also to provide support to implementation agencies.
4.4.1 Service Standards
The strategic objective of this sub-programme
is to strengthen social welfare services delivery through the legislative and
policy reforms by 2019. The high-level
output for this goal is the review the implementation of the White Paper for
Social Welfare. For the 2014/15
financial year the department would award 1 100 new scholarship to social
work students.
The department through this programme would
professionalize and regulate Social Service Practitioners through the development
of a Regulatory Framework by March 2019.
It also aims to strengthen capacity for social service professionals
through the veteran’s programme by 2019.
In 2013/14 guidelines on the recruitment, remuneration and engagements
of social work veterans were developed.
The department would also introduce effective
Regulatory and Funding systems for funded Non Profit Organisations by
2017.
4.4.2 Care and services to Older Persons
The strategic objective of this sub-programme
is to create an enabling environment for the protection and promotion of the
rights of older persons by 2019.
The department would ensure compliance with
the norms and standards for care and protection of older persons. It will ensure that Community Based Care
Services and Support and residential facilities are compliant with the prescribed
norms and standards. Within this
financial year the department intends to have a national register for
residential and registered Community Based Care Services and Support.
Amendments to the Older Persons Act (2006)
will be introduced to Parliament in 2016/17 financial year.
4.4.3 Services to people with disabilities
The
strategic goal of this sub-programme is to promote and protect the rights of
people with disabilities. The department will by March 2015 draft a legislation that will deal
with services to people with disabilities. It will be finalised and introduced
to Parliament in 2017. The department will also develop norms and standards for
residential facilities for people with disabilities.
4.4.4 Children
The department aims to improve the quality of
Early Childhood Development (ECD) services by 2019. In so doing, it will develop and implement an
ECD policy. By March 2015, the department will draft the ECD policy, finalise
comprehensive ECD programme, finalise roll out plan on ECD and develop a
concept paper on the legislative alignment for ECDs.
The department will strengthen the child
protection services through the implementation of the child care and protection
measures by 2019 by:
4.4.5 Families
The strategic objective of this programme is
to strengthen families by providing comprehensive social services. In this
current financial year the department has established 6 provincial forums and
an Integrated Parenting Framework was approved.
By March 2015, the department has set a target to facilitate
establishment and strengthening of the national and provincial forums. A key
activity over the medium term will be to review the White paper on Families and
monitor and support implementation of family development programmes. By March 2015 the department aims to build
capacity on Fatherhood and Active Parenting programme for teenagers.
4.4.6 Social Crime Prevention and Victim
Empowerment
The strategic objective of this sub-programme
is to reduce the incidence of social crime through programmes, policies and
legislation by March 2016. Through this
sub-programme the department will monitor and support the implementation of
quality assurance processes for diversion programmes and service providers
accredited in terms of Child Justice Act.
In March 2014 the department will build
capacity of the 63 Quality Assurance Panel Members of the Policy Framework on
Accreditation of Diversion Services. It
will also facilitate the implementation of the Policy Framework on
Accreditation of Diversion Services. In
the 2013/2014 financial year, the department monitored the implementation of
the integrated Social Crime Prevention Strategy Action Plan.
The department intends to draft a bill on
victim support services. It will also
monitor the implementation of gender based violence prevention programs. It will develop an Inter-sectoral Strategy
for VEP programme and develop a Monitoring and Evaluation system for this
programme. The department will also
draft a policy framework for the accreditation of services and programmes for the
victims of human trafficking.
4.4.7 Substance abuse
This sub-programme’s goal is to reduce demand
for substances in communities by providing prevention and treatment services.
The performance indicator on this sub-programme
is the implementation of the National Anti-Substance Abuse Programme of Action.
A number of 120 people were capacitated on the Prevention of and Treatment for
Substance Abuse Act and its Regulations. The implementation of the National
Anti-Substance Abuse Programme of Action was implemented and monitoring of
implementation will be done by the national departments. The department has set a target to monitor
and implement the National Drug Master Plan during 2013-2017.
4.4.8 Youth
The goal of this sub-programme is to empower
youths for sustainable development and social change. It develops and facilitates the
implementation of policies, legislation and programmes to protect vulnerable
youth.
The department has set a target to ensure
that by the end of the 2014/15 financial year, 4 800 youth will be
participating in mobilisation programmes.
It also intends to establish 3 provincial youth forums.
4.4.9 HIV and AIDS
The department, through this sub-programme
aims to develop and facilitate the implementation of social and behaviour
change programmes. It has set a target
to reach a number of 500 000 youth through the social and behavioural change
programmes. Training material on men in
action has been developed.
A number of 2 700 young people were
trained as mPintshis to implement social and behaviour change programmes. The department facilitated 124 conversations
and social mobilisation guidelines and costing plan was developed.
Performance and expenditure trends
Through the Social Worker Scholarships
sub-programme, the department provides scholarships which are administered by
the National Student Financial Aid Scheme. The department expects to award
scholarships to 4 154 students in 2016/17.
Through the HIV and AIDS sub-programme, the department makes transfer
payments to LoveLife to increase the number of HIV and AIDS awareness
prevention and management programmes, including training 540 Groundbreakers and
2 700 mPintshis.
The increase in expenditure in the
Youth sub-programme in 2012/13 and in 2013/14 was due to the additional funding
requirements of the youth camp events.
Spending in the Children sub-programme
has grown, with additional allocations in 2012/13 and 2013/14. These
allocations are for the ECD audit and for systems to facilitate the rollout of
the Isibindi model, a community based model of responding to the needs of
orphaned and vulnerable children.
A key cost driver in the Older Persons
sub-programme is the Golden Games, in which older people participate and
compete in various sporting activities in order to promote active ageing. In
2012/13, the department carried all costs relating to the Golden Games. In
2014/15, and 2015/16, the decrease in expenditure in the Older Persons
sub-programme is due to cost sharing arrangements between provincial
departments and the national Department of Sports and Recreation.
4.5 Programme 5: Social Policy and Integrated Service Delivery
The purpose of this programme is to support
community development and promote evidence-based policy making in the
department and the social development sector.
4.5.1 Special Projects and Innovation
The strategic objective of this sub-programme
is to increase job opportunities and skills through the coordination of the
Social Cluster Public Employment programmes by 2019. It intends to promote community driven
development and provide social protection to military veterans. For the year
under review, the department will create 33 307 job opportunities.
Another strategic objective is to promote
community driven development and in 2013/14 they have established 9 sites of
Community Works Programme (CWP). In
2014/15 financial year the department has set a target to facilitate the
provision of integrated Department of Social Department services to 21 CWP.
4.5.2 Registration and Monitoring of Non-Profit
Organisations
This sub-programme aims to create an
efficient regulatory an capacity building framework for Non-Profit Organisation
(NPO) by 2019. The department intends to process 90% of applications for
registration of NPOs within two months. In 2013/14 the department received
18 448 registration applications and 17 573 were processed within two
months as per set performance indicator. It approved a policy for amending the
NPO Act. A target has been set to
adjudicate 50% of NPO appeals in 2014/15 financial year and it also intend to
audit 10 000 department’s funded NPOs.
4.5.3 Community Development
The strategic objective of this sub-programme
is to create an enabling environment for uniform and effective community
development practice by 2019. In 2013/14
the department had trained 700 Community Development Practitioners (CDPs) on
community development practice. The department has developed a Draft Community
Development Policy Framework.
Performance and expenditure trends
Through the transfer payment the NDA
receives from the department, the agency implements sustainable community
driven projects that provide support to the NPOs working on ECD, food security,
and employment creation.
Between 2013/14 and 2016/17 financial
years, expenditure under this programme is expected to increase due to the
additional allocation provided for food security through the Food for All
programme carried out in the Community Development sub-programme. Non-profit
organisations will administer the food relief programmes to various households.
This is expected to result in 1.4 million people being fed through numerous
hunger relief initiatives such as food banks and community nutrition
development centres by 2016/17.
The department has reprioritised R10
million for each year of the MTEF period from the South African Social Security
Agency as an additional allocation to the Registration and Monitoring of
Non-profit Organisations sub-programme to improve the management of the NPOs
database, make the process to register NPOs more efficient.
5.
Financial implications
The overall budget of the department
for the financial year 2014/15 is R128.7 billion compared to R 118.5 billion
the previous financial year, which represents an increase of 8.7 per cent in
nominal terms and 2.34 per cent in real terms.
Ninety five per cent (95%) of the budget constitutes
transfers and subsidies and only 0.5 per cent goes to the current payments.
The most
significant transfer is approximately R120.9 billion intended as social
assistance transfers to beneficiaries.
The 2014 budget includes additional allocations of R35.6 million in
2014/15. As part of Cabinet approved
budget reductions, the department will reduce spending by R451.8 million in
2014/15.
Table 1: Budget
allocation per programme
Programme |
2013/2014 |
2014/15 |
2015/16 |
2016/17 |
|
R'000 |
R'000 |
R'000 |
|
P1: Administration |
266.500 |
275 065 |
288 288 |
304 641 |
P2: Social Assistance |
111 006 800 |
120 952 101 |
129 493 278 |
137 556 422 |
P3: Social Security Policy and Administration |
6 394 000 |
6 662 596 |
6 929 864 |
7 297 860 |
P4: Welfare Service Policy Development and Implementation Support |
554 500 |
586 450 |
607 098 |
638 862 |
P5: Social Policy and Integrated Development |
289.700 |
323 166 |
341 572 |
360 639 |
TOTAL |
118 511.6 |
128 799 3787 |
137 660 100 |
146 158 424 |
6.
Observations and concerns
·
It observed that the department is still
lagging behind in terms of capacitating Non Profit Organisations. It
highlighted issues of NPO registration, compliance to norms and standards and
guidelines by NPOs and other factors that hinder effective service delivery as
main challenges. It emphasized that the
department should prioritise these issues and put in place monitoring and
evaluation mechanisms aimed at addressing service delivery challenges.
·
It further noted that the
department’s breakdown of economic classification reflected transfers to
certain NPOs and not to other NPOs playing a key role in implementing the
department’s services and programme. The department acknowledged the concern of
the committee and undertook to give it the necessary attention.
·
The
Committee expressed concern over the delays in the adoption
processes due to the long processes that have to be followed before the actual
adoption.
·
It was also concerns that
some targets set had no baselines. This may be viewed as poor planning.
·
It was concerned about the
high levels of inequality in service delivery in communities. It advised the department to address this
challenge. The department acknowledged that inequality in service delivery is a
challenge hence it launched the Mikondzo programme, which profiles households
and identify their needs.
7.
Recommendations
The
Committee made the following recommendations:
·
The Minister of Social Development should review the allocation of
funds to the NPOs. The review should particularly focus on the relevance of the
NPO, its visibility and accessibility to all communities.
·
The Minister should ensure that the department conducts an audit
on the rehabilitation centres to assess their compliance to norms and
standards. The audit should also focus on the accessibility and affordability
of their programmes.
·
The Minister should ensure
that the department conducts a needs assessment on the accessibility of its
programmes to the communities to ensure that the challenges of inequality in
the service delivery are addressed.
8.
Resolution
The Committee resolved that the department should
come and brief it on the Early Childhood Development Master Plan.
The department should provide the Committee with
a list of the NPOs it is funding. The list should provide the budget allocation
to each NPO, the programmes they implement and their relevance to the mandate
of the department.
The Committee resolved to visit the Noupoort
rehabilitation centre in the Northern Cape to assess its compliance to norms
and standards and the kind of treatment programmes it administers.
The department should brief the Committee on the
National Disability Rights Policy and the National Disability Framework.
8. Annual Performance Plan and
Budget Vote of Programme 3 and 4 of the DWCPD
The Committee proceeded to consider the Annual Performance Plan of the
Department of Women, Children and People with Disabilities focusing on
programme 3 and 4.
The Committee noted the tabling of the APP of programme 3 and 4 by the
Department of Women, Children and People with Disabilities and that these
functions had been added to the Department of Social Development.
Deputy Minister gave a high level background
on the reasons why the department was established. South Africa is a signatory
to the international agreements. These include the United Nations Convention on
the Rights of a Child and United Nations Convention on the Rights of Persons
with Disabilities. The department was therefore formed to facilitate the
implementation of these agreements as well as provide technical expertise and
advise. Hence the three sub-programmes of the department are: Advocacy and
mainstreaming, institutional support and capacity development and monitoring
and evaluation.
Under Programme 3 the priority of the
department is to launch and pilot the Ulwazi ngabantwana database, which will
profile the children. The database will be linked to the Department of Home
Affairs and the Department of Health. Under Programme 4 the department’s
priority is to publish the draft National Disability Rights Policy.
The department reported that the baseline
country reports on children and people with disabilities were being finalised
and thereafter they will be tabled in Parliament.
The two programmes were allocated a budget of
R25 million.
Observations
The Committee noted the additional functions of Programme 3 and 4 to the
Department of Social Development and resolved to wait for the proclamation by
the President outlining the restructuring of the department. Thereafter it will
invite the department to brief it on the new structure.
THE SOUTH AFRICAN SOCIAL SECURITY
AGENCY (SASSA) 2014 – 2015 ANNUAL PERFORMANCE PLAN, THE STRATEGIC PLAN AND
BUDGET (2014/15 – 2018/19)
1. Introduction
The South African Social Security
Agency (hereafter referred to as the SASSA or the Agency) is a Schedule 3A Public Entity that was established in April 2006. The objectives of SASSA are to act as the sole agent that will ensure the efficient and effective
management, administration and payment of social assistance and to eventually
serve as institution to manage broader social security benefits.
The Portfolio Committee on Social Development having considered and
deliberated on the Annual Performance Plan (APP), and the Strategic Plan and
the Budget of SASSA on 2 July 2014 wishes to report as follows:
2. Background
The presentation gave an overview of the rationale for the establishment
of SASSA, its human resource capacity, foot print and a summary of its
achievements. It was reported that the organizational structure of SASSA
provides for 18,000
staff members at different levels. The number of funded posts,
including Extended Public Works Programmes (EPWPs) was 10 888. The filled
posts stood at 9 699. The majority of the staff (70%) perform the grant
administration function (application to approval), excluding the actual payment
of grants. The full structure will be gradually implemented as the Agency takes
over the payment of social grants from the current service provider. The Agency
has received unqualified audit opinions from 2011 - 2013.
The Agency
reported that it had achieved the following achievements between 2011/12 –
2013/14 financial years: the finalisation of the payment tender and migration
to the new payment system, improvement of the local offices, implementation of
a standardised four step process, re-registration of 20.7 million beneficiaries, capacity building
of staff, linking of social grants recipients to cooperatives and the incorporation
of the Integrated Community Registration Outreach Programme (ICROP) into the
Mikondzo programme.
The number
of social grants beneficiaries as at March 2014 was 15. 9 million. This
constitutes 30.8% of the total population of the country. Between 2012/13 and
2013/14 financial years the growth rate of the number of grants benefits
decreased by 1.08% due to the decreasing growth in the Disability Grant, the Foster
Care Grant and the Child Support Grant. The decrease was as a result of
efficiencies in grant administration and cancellations brought about by the
re-registration process.
3. Priority areas for 2014/15 - 2018/19
3.1 Reduce income poverty by providing income
support to eligible beneficiaries
The Agency will expand enrolment and payment of social
assistance to eligible older persons, people with disabilities and children. It
will improve the take-up rates of 0-1 year old and 16 – 18 years old Child
Support Grant (CSG) beneficiaries. It will also improve the take up rates of the
Foster Care Grants (FCG) and conduct reviews of the grant in collaboration with
the Department of Social Development. By the end of 2014/15 it plans to
increase the number of grants in payment from 15 932 473 to 16
052 000.
It will further improve the management of Social Relief of Distress
(SRD) by ensuring that qualifying beneficiaries are not disadvantaged. It will process 150 000 SRD
applications per annum over the next three years. Priority will be given largely to the following areas:
·
children suffering from mal-nutrition;
·
assisting families where the breadwinner died or is
unemployed;
·
assisting in disaster situations; and
·
individuals awaiting grants.
The CSG uptake rates will be increased up to 70% to address the current
stagnant uptake rates of infants.
3.2 Improve service delivery
SASSA will
improve its service delivery by acquiring and maintaining infrastructure in
areas that are strategically located to serve the beneficiaries better. Most
importantly it will improve turnaround time and quality in the processing of
applications. The turnaround time will be progressively reduced to an average
of 10 days by 2016.
3.3 Improve internal efficiency
To further
fight fraud and corruption among its officials, the Agency will develop and
implement biometric for staff. As part of automating its business operations,
the Agency will develop an in-house system for management of beneficiaries
biometrics information. It will improve its payment systems by developing a
data factory - an in-house payment control and reconciliation capability.
Preparations
for the new payment model would be done in phases, as follows:
·
Phase 1 (2012 -2014): Centralisation and improvement of
integrity of the data which included collection of biometric data. This had
been achieved through the re-registration process. In addition, SASSA
introduced beneficiaries to an electronic banking environment.
·
Phase 2 (2014 – 2015): Taking over on-going enrolment
process, that is, the biometric enrolment of all new grant beneficiaries.
·
Phase 3 (2014 - 2015): DATA Factory - Developing SASSA’s
in-house capability to manage enrolments, payments and reconciliations.
These phases
will run parallel to the new tender process.
3.4 Institutionalise the social grants
payment system within SASSA
A
Ministerial Advisory Committee was appointed to provide advise the Minister on
the future payment options for SASSA. The plan was for SASSA to take total
responsibility for the payment of social grants in 2017. However, the Constitutional Court instructed
SASSA to issue a tender for five years. The Agency is in the process of
implementing the tender. The payment tender would cost R10 billion.
3.5 Other initiatives
to be addressed by SASSA
For 2014/15 SASSA will embark on an intensive effort to recruit people
with disabilities. It will also explore measures to build SASSA’s Future
Workforce by establishing partnerships with universities and the universities
of technology and giving bursaries for training and education in the field of
social security.
4. Financial plan for
2014/15
The Agency
was allocated a budget of R6, 7 billion. The bulk (60%) of this budget was
allocated to Goods and Services. This is because the strategic and spending
focus of SASSA is on the administration and payment of social grants. Thirty
nine percent (39%) of the budget was allocated to Compensation of Employees.
5. Challenges
The Constitutional Court ruled the payment tender to Cash Paymaster
Services (CPS) invalid. It further ruled that SASSA needs to take remedial
processes to correct the public procurement principles of transparency,
empowerment, empowerment and competitiveness that it had found had not been
correctly followed. SASSA has therefore a challenge to implement this ruling
and develop a new payment tender.
SASSA provides support to the areas affected by natural disasters. It
therefore has a challenge to put in place systems and registries to co-ordinate
its intervention programmes.
The Agency is faced with the impact of the unlawful deductions from the
beneficiaries grant payments. SASSA indicated that this is the unintended consequence of the electronic payment process. Its
investigation revealed that some of the deductions are repayments for the
beneficiaries existing loans. In other instances deductions are made by
companies who sell their products through telemarketing. SASSA explained that it
is difficult for it to intervene because these companies had been granted
trading licenses by the Department of Trade and Industry. The Minister of
Social Development set a task team to deal with matter and advise her on
possible solutions. It is envisaged that the task team’s report will be
completed by the end of July 2014 and it will be submitted to the
Minister.
6. Deliberations and concerns
The Committee raised a concern over the cash handling fees charged by
the banks on the grant payments. SASSA reported that it was in discussions with
the Reserve Bank to find ways to address this. The Committee also raised a
concern over the long queues at the pay points. This is a challenge that SASSA
does not seem to be able to eliminate. SASSA reported that interventions to
reduce long queues are an ongoing process.
The Committee welcomed the task team set by the Minister to investigate
and advise her on the new Payment Model for SASSA. The Committee will be
closely following progress in this matter. It also welcomed the task team set
to investigate and advise the Minister on the ways to address the issue of
deductions from the social grants.
7. Recommendations
The
Committee made the following recommendations:
·
The
Minister of Social Development should ensure that measures to eliminate cash
handling fees charged by the banks on the social grants payments are
prioritized and finalized within this medium term period. This process has been
under discussion for some time.
·
SASSA
should continue raising awareness of its beneficiaries on the nature and the
impact of the deductions (either from existing loans or telemarketing) from
their social grants. This should be over and above the interventions the task
team will advise the Minister to implement.
THE NATIONAL DEVELOPMENT AGENCY
(NDA) 2014 – 2015 ANNUAL PERFORMANCE PLAN, THE STRATEGIC PLAN AND BUDGET
(2014/15 – 2018/19)
1. Introduction
The
National Development Agency (hereafter referred to as the NDA
or the Agency) is a Schedule 3 (A) Public Entity established
in terms of Section 2 of the National Development Agency Act (108 of 1998) and
reports to the Parliament of the Republic of South Africa through the Minister
of Social Development.
The Portfolio Committee on Social Development having considered and
deliberated on the Annual Performance Plan, the Strategic Plan of the National
Development Agency and the budget on 2 July 2014 wishes to report as follows:
2. NDA strategic goals and objectives for 2014-2019
The NDA
identified two strategic focus areas for 2014/15 – 2019, namely, capacity
building of Civil Society Organisations (CSOs) and grant funding. Under grant funding it will provide funding
to the following programmes:
·
Early Childhood Development;
·
Food security; and
·
Income generation (programmes and projects).
It will specifically support programmes aimed
at promoting the livelihood of vulnerable groups – children, persons with
disabilities, women and youth. With
regard to the ECD, the Agency will focus on infrastructure upgrade, capacity
building of ECD practitioners, and ECD management and food nutrition through
food gardens at the ECD sites.
To achieve the aforementioned objectives, the
Agency identified four strategic goals, which are to:
2.1 Increase
capacity of the CSOs that deliver development programmes to reduce poverty,
inequality and unemployment
The Agency plans to achieve this goal by increasing the number of CSOs
capacitated in institutional strengthening and technical skills from 690 to
14 000 by 2019. It also plans to fund 375 ECD sites, 475 food security
programmes and 175 income generating projects by 2019.
2.2 Increase resources towards poverty eradication programmes and
projects
It plans to achieve this goal by undertaking research, evaluations, best
practices, publications and policy dialogues to improve and influence policy
direction for development practices.
2.3 Conduct
evidence based information that informs development policy and programmes
It plans to mobilise R650 million in cash and in kind through sustainable
partnerships towards building the capabilities of communities and households
for self reliance by 2019.
2.4 Increase
internal efficiency, cost effectiveness and organizational sustainability
To achieve this goal, the Agency plans to strength internal system,
processes and human capability to deliver its mandate. It set itself an
objective to maintain sound governance and administration that promotes
performance, employee development and growth, efficient financial management
and enhance brand recognition from 71% to 90% by 2019.
3. Financial plan
The NDA has been allocated a total budget of R178, 337
million for 2014/15 financial year. The
bulk of the budget (R111, 758 million) has been allocated to the mandated
costs of the Agency, followed by R99, 852 million to Programme 1: Capacity
Building. This budget allocation reflects the Agency’s resolution to allocate more
budget towards its mandated costs versus administration costs. The budget
allocation over the Medium Term Expenditure Framework (MTEF) will increase to
R195, 443 million.
4. Deliberations and concerns
The
Committee expressed a concern over the Agency’s low targets of increasing its
visibility over the next five years. The Agency reported that it will increase
its visibility from 71% to 90% by 2019. This translates to only 19% each year.
The
Committee was also concerned over the low targets on ECD infrastructure
improvements. Over the next five years the Agency plans to improve 375 ECD
sites. This translates to only 77 sites each year. Another concern raised by the Committee was
the lack of integration of the Agency’s performance targets to the Department
of Social Development’s mandate. Because of these concerns, the Committee felt
that the presentation by the Agency failed to provide adequate motivation for a
budget review and increase as requested by the Chief Executive Officer.
5. Recommendations
The
Committee made the following recommendations:
·
The
Minister of Social Development should ensure that the integration between the
department and the NDA is strengthened so as to make sure that the Agency’s
programmes and performance targets are aligned to the mandate of the department.
·
The Minister should ensure that the NDA
improves on its reporting to Parliament on its Annual Performance Plans and
Strategic Plan. The presentations should give more details on the Agency’s
programmes and funding to the CSO, ECD and food security programmes.
6. Resolution
·
The
Committee resolved that the presentation to be made by the Department of Social
Development on the ECD Master Plan should also include the kind of support, both
financial and non-financial, the NDA provides to the ECD sites.
·
It
requested the NDA to provide it with a copy of the National Treasury Review
Report on the NDA.
Report to be
considered