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Presentation to the Portfolio Committee on the Social Security Agency

Presentation to the Portfolio Committee on the Social Security Agency. February 2005. Purpose of the presentation. The proposed process map towards the Agency establishment; An overview on progress; The funding mechanism for 2005 The short-term improvement plan. Background.

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Presentation to the Portfolio Committee on the Social Security Agency

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  1. Presentation to the Portfolio Committee on the Social Security Agency February 2005

  2. Purpose of the presentation • The proposed process map towards the Agency establishment; • An overview on progress; • The funding mechanism for 2005 • The short-term improvement plan

  3. Background • The Social Assistance Act, 2004 shifts the responsibility for social grants to the national sphere of government. • The South African Social Security Agency Act, 2004 establishes the Agency for the management & administration of social grants • South African Social Security Agency Act is operational. • The Constitutional Court’s recent decision requires that the function shift is effected by 6 March 2005. • An Inspectorate will be responsible for ensuring that the integrity of the social grants system is not compromised • All efforts are made to ensure that the Agency is functional and operational by April 2005

  4. Establishment of the Agency - Phases • Phase 1 – by 1 April ’05 - Agency is established as a legal entity with Head Office and management structure • Ring-fence of social grants function and separation; • Development and roll out of systems, policies and procedures • Implementation of short term improvement plans • Phase 2 – April 2005 to March 2006 Continued delivery of grants by provinces • Conditional grant agreement and MOU with provinces • Capability building of the Agency as well as a role in the integrity enhancement of the system • Phase 3 – from April 2006 - Optimisation of the Agency during

  5. Process Map to Agency Establishment

  6. Process Map to Agency Establishment

  7. Process Map to Agency Establishment

  8. Process Map to Agency Establishment

  9. Process Map to Agency Establishment

  10. Progress Continues.… The Service Delivery Stream developed draft versions of: • A Strategic Plan, with the Agency vision, mission and programs; • The envisaged Business and Delivery Model; • Implementation plans for delivery improvement being finalised; and • A building procured and being refurbished. The Human Resources Management Stream developed the: • Guidelines for transfer of staff; • Organisational structures for the Head Office and provinces developed; • Initiated ringfencing of personnel; • Advertisement of the CEO and Executive management posts; and • Draft Policies, procedures and enablers for Human Resources.

  11. Progress Continues.… The Finance Stream is: • Budget for the Agency was submitted; and • Benchmarking financial and procurement policies for the Agency. • Financial ringfencing is making good progress The Information Technology Stream developed: • An Information Technology strategy; • An IT migration plan for the (SocPen); • Is procuring an IT workflow system to grants process • Request for proposals for an Enterprise Resource planning system will soon be published

  12. Progress Continues.… The Legal Stream is: • Looking at the proposed governance agreements; • Reviewed contractual agreements with service providers; • Draft Regulations are available for comment; and • Proclamation of the Agency Act should be done soon. The Communications and Change Management Streams have: • Developed a Communication Strategy and plan; • A stakeholder management strategy and plan; • An interim Public Relations and Branding Strategy; and • A Change Management plan to address staff and other related issues.

  13. The Funding Mechanism • Given that the Agency will be building capabilities throughout 2005, provinces will need to manage and administer grants • Funding of the function will be through through conditional grants via the national Department • The Conditional grant will have two components • Administration (incl. Personnel and payment contractors) • Social Grants transfers – subdivided into different grants • Funding of Agency and Inspectorate thru transfer payment between DoSD and the Agency

  14. Implementation of the Conditional Grants • The Budget Council, MinComBud and Cabinet approved a conditional grant for 2005/06 • Finalisation of grant framework, conditions and monitoring mechanism completed • Recommendation of the size of administration component requires ringfencing to be complete soon • Inline with the Social Assistance Act, a Memorandum of Understanding will be signed between national and Provinces at the next MinMec 28 February 2005

  15. Improvement Plan • Since provinces will continue to deliver social grants services, it is important that visible improvements are implemented in line with Agency establishment date. • The Improvement plan has two elements: • Integrity improvement • Service Delivery Improvement.

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