ANNUAL - National Government...REPORT ANNUAL 2016/17 Toll free: 0800 60 10 11 CONTACT DETAILS HEAD OFFICE SASSA HOUSE 501 Prodinsa Building Cnr Steve Biko and Pretorius Street Pretoria

REPORTANNUAL

2016/17

Toll free: 0800 60 10 11www.sassa.gov.za

CONTACT DETAILS

HEAD OFFICE SASSA HOUSE501 Prodinsa Building Cnr Steve Biko and Pretorius StreetPretoriaPrivate Bag X55662 Arcardia, Pretoria 0083

Tel: 012 400 2000 (Switchboard)Website: www.sassa.gov.za

EASTERN CAPE Office BKB Building Cnr Fitzpatrick& Merino Road QuigneyEast LondonPrivate Bag X9001 Chiselhurst East London 5200

Tel: 043 707 6300Fax: 043 707 6481CPS Call Centre 072 306 3471 / 072 316 2050 / 072 311 3028

FREE STATEAfrican Life Building 75 St. Andrews StreetBloemfonteinPrivate Bag X20553 Bloemfontein 9300

Tel: 051 410 8339Fax: 051 409 0862CPS Call centre 071 771 12 58 / 072 286 7972 / 082 259 8727

GAUTENG28 Harrison StreetJohannesburg 2000Private Bag X120 Marshalltown 2107


KWAZULU NATAL1 Bank StreetPietermaritzburg 3201Private Bag X 9146 Pietermaritzburg 3201


LIMPOPO43 Landros Mare StreetPolokwane 0699Private Bag X9677 Polokwane 0700


MPUMALANGA18 Ferreira StreetNelspruitPrivate Bag X11230 Nelspruit 1200


NORTH WEST 1st Street, Industrial SiteMahikeng 2735Private Bag X44

Tel: 018 397 3386CPS Call Centre 082 344 0493 / 071 100 6483 / 076 710 0862

NORTHERN CAPE95-97 Du Toit Span RoadKimberley 8300Private Bag X6011 Kimberley 8300

Tel: 053 802 4900Fax: 053 832 5225CPS Call Centre 076 030 9929 / 076 662 1545 / 072 186 8095 / 071 416 6324

WESTERN CAPEGolden Acre Adderley StreetCape Town 8001Private Bag X9189 Cape Town 8000


RP260/2017ISBN: 978-0-621-45747-6

REPORTANNUAL2016/17

TABLE OF CONTENTSPART A: GENERAL INFORMATION ......................................................................................5

1. SASSA’s General Information ...................................................................................................................................6

2. List of Abbreviations/Acronyms ............................................................................................................................7

3. Foreword by the Minister ..........................................................................................................................................8

4. Chief Executive Officer’s Overview ...................................................................................................................10

5. Statement of Responsibility and Confirmation of Accuracy for the Annual Report .........16

6. Strategic Overview .....................................................................................................................................................17

6.1. Vision ............................................................................................................................................................17

6.2. Mission ............................................................................................................................................................17

6.3. Values ............................................................................................................................................................17

6.4. SASSA’s priorities ........................................................................................................................................17

7. Legislative and other mandates .........................................................................................................................17

8. Organisational Structure .........................................................................................................................................19

PART B: PERFORMANCE INFORMATION ...........................................................................21

1. Auditor’s Report: Predetermined Objectives..............................................................................................22

2. Situational Analysis .....................................................................................................................................................23

2.1. Service Delivery Environment ...........................................................................................................23 2.2. Organisational Environment ..............................................................................................................26 2.3. Key policy developments and legislative changes ..............................................................26

2.4. Strategic Outcome Oriented Goal ..................................................................................................27

3. Performance Information by Programme ....................................................................................................27

3.1. Programme 1: Administration ...........................................................................................................27

3.2. Programme 2: Benefits Administration and Support .........................................................43

4. Revenue Collection ....................................................................................................................................................63

4.1. Capital Investment ...................................................................................................................................63

PART C: GOVERNANCE ......................................................................................................65

1. Introduction ............................................................................................................................................................66

2. Portfolio Committees ................................................................................................................................................66

3. Executive Authority ....................................................................................................................................................67

4. Risk Management .......................................................................................................................................................67

5. Internal Control Unit ..................................................................................................................................................67

6. Internal Audit and Audit Committees ............................................................................................................68

7. Compliance with Laws and Regulations ......................................................................................................70

8. Fraud and Corruption ...............................................................................................................................................71

9. Minimising Conflict Of Interest ...........................................................................................................................71

10. Code of Conduct .........................................................................................................................................................71

11. Health Safety and Environmental Issues .......................................................................................................72

12. Audit Committee Report ........................................................................................................................................72

PART D: HUMAN RESOURCE MANAGEMENT ...................................................................75

1. Introduction ............................................................................................................................................................76

2. Human Resource Oversight Statistics ............................................................................................................77

PART E: FINANCIAL INFORMATION...................................................................................87

1. Report of the External Auditor ............................................................................................................................88

2. Annual Financial Statements ...............................................................................................................................94

TTable 1: Number of social grants by grant type.................................................................................................... 24

Table 2: Social Grant Expenditure per Grant type ............................................................................................... 25

Table 3: Number of Social Grants by Grant Type and Region as at 31 March 2017 ....................... 25

Table 4: Strategic objectives, performance indicators planned targets and actual achievements: Sub-programme 1.1: Executive Management .................................................................... 28

Table 5: Strategic objectives, performance indicators planned targets and actual achievements: Sub-programme 1.2: Corporate Services ............................................................................... 33

Table 6: Strategic objectives, performance indicators planned targets and actual achievements: Sub-programme 1.3: Information and Communication Technology .................. 37

Table 7: Strategic objectives, performance indicators planned targets and actual achievements: Sub-programme 1.4: Financial Management...................................................................... 40

Table 8: Strategy to overcome areas of under-performance: Programme 1: Administration .. 42

Table 9: Linking performance with budgets: Programme 1: Administration ..................................... 43

Table 10: Strategic objectives, performance indicators planned targets and actual achievements: Programme 2: Benefits Administration and Support ..................................................... 44

Table 11: Strategy to overcome areas of under-performance: Programme 2: Benefits Administration and Support ....................................................................................................................... 61

Table 12: Linking performance with budgets: Programme 2: Benefits Administration and Support ...................................................................................................................................................... 62

Table 13: Revenue Collection ........................................................................................................................................... 63

Table 14: Portfolio and Select Committees Engagements ............................................................................ 66

Table 15: Reports submitted to the Executive Authority ................................................................................ 67

Table 16: Relevant information on the audit committee members ........................................................ 70

Table 17: Attendance of Audit Committee Meetings ....................................................................................... 72

Table 18: Personnel Cost by Programme .................................................................................................................. 77

Table 19: Personnel Cost by location........................................................................................................................... 78

Table 20: Personnel cost by Salary band ................................................................................................................... 78

Table 21: Performance Rewards by Salary band .................................................................................................. 79

Table 22: Training Costs by Programme .................................................................................................................... 79

Table 23: Employment and Vacancies ........................................................................................................................ 80

Table 24: Employment and Vacancies by salary band ...................................................................................... 82

Table 25: Employment changes ..................................................................................................................................... 82

Table 26: Reason for staff leaving................................................................................................................................... 83

Table 27: Labour Relations: Misconduct and disciplinary action ............................................................... 83

Table 28: Equity Target and Employment Equity Status .................................................................................. 84

LIST OF TABLES

SOUTH AFRICAN SOCIAL SECURITY AGENCY

PART A:GENERAL INFORMATION

SOUTH AFRICAN SOCIAL SECURITY AGENCY6

1. SASSA’S GENERAL INFORMATION

The South African Social Security Agency (SASSA)

Physical address of Head Office

Head Office Address:

SASSA House

501 Prodinsa Building

Cnr Steve Biko and Pretorius Streets

Arcadia

0083

Postal Address of Head Office

Private Bag X55662

Arcadia

Pretoria

0007

Contact telephone numbers

Switch Board: 012 400 2000

Toll free: 0800 60 10 11 or CPS 0800 60 01 60

Email address: [email protected]

Website address: www.sassa.gov.za

External Auditors: Auditor-General South Africa (AGSA)

Bankers: South African Reserve Bank (SARB) and First National Bank (FNB)

SOUTH AFRICAN SOCIAL SECURITY AGENCY 7

2. LIST OF ABBREVIATIONS/ACRONYMS

AGSA Auditor General of South AfricaAFS Annual Financial StatementsAPP Annual Performance PlanBAC Bid Adjudication CommitteeBI Business IntelligenceCCMA Commission for Conciliation, Mediation and ArbitrationCDG Care Dependency GrantCEO Chief Executive OfficerCFO Chief Financial OfficerCIO The Chief Information OfficerCPS Cash Paymaster ServicesCSD Central Supplier DatabaseCSG Child Support GrantDG Disability GrantDHA Department of Home AffairsDSD Department of Social DevelopmentEE Employment EquityEPWP Expanded Public Works ProgrammesEXCO Executive CommitteeFCG Foster Child GrantFMB Financial Misconduct BoardGHS General Households SurveyGIA Grant-in-AidGRAP Generally Recognised Accounting PracticeHCM Human Capital ManagementHR Human ResourceICROP Integrated Community Outreach Programme ICT Information and Communication TechnologyIMC Inter-Ministerial CommitteeIRM Internal Reconsideration MechanismMANCO Management Committee

MPSS Minimum Physical Security StandardMTEF Medium Term Expenditure FrameworkNACH National Anti-Corruption HotlineOAG Old Age GrantOHSA Occupational Health and Safety ActPFMA Public Finance Management ActPSC Public Service CommissionPWDs People with DisabilitiesREM Regional Executive ManagerRFP Request for ProposalSASSA South African Social Security AgencySCM Supply Chain ManagementSCOPA Standing Committee on Public AccountsSLA Service Level AgreementSOCPEN Social Pensions SystemSRD Social Relief of DistressSSA State Security AgencyStatsSA Statistics South AfricaToR Terms of ReferenceTR Treasury RegulationsWVG War Veteran Grant


Ms BO Dlamini, MPMinister of Social Development

3. FOREWORD BY THE MINISTER

This annual report gives us an important opportunity to reflect on the progress we have

achieved for the 2016/2017 financial year. While much more still remains to be done, I am

proud to say that we have registered significant milestones for the period under review.

On 17 March 2017, the Constitutional Court judgment once again reaffirmed that the

South African Social Security Agency (SASSA) has a constitutional obligation to administer

and pay social grants. In making this declaration, the Constitutional Court was mindful

of Section 27 of the Constitution of the Republic of South Africa (Act 108 of 1996) which

provides that everyone has the right to have access to social security, including the right

to social assistance, if they are unable to support themselves and their dependents.

The Constitution further obliges the State to take reasonable legislative and other

measures, within its available resources, to achieve the progressive realisation of this

right. It is this constitutional obligation that led to the promulgation of the SASSA Act

(Act No.13 of 2004) in the first place and to the birth of SASSA eleven years ago. Since

SASSA’s inception, the function of payment of social grants was outsourced to external

service providers with the understanding that the Agency will build internal capacity to

take over this responsibility in the long term.

As we move forward to implement the Constitutional Court order, we are also taking

great care to identify technical and expert requisite skills within SASSA to effectively

execute this function. Government is also taking this matter seriously. In March this year,

President Jacob Zuma established the Inter-Ministerial Committee on Comprehensive

Social Security to ensure that the Constitutional Court order is implemented efficiently

and diligently in its entirety.

Beyond the important directive from the Constitutional Court, the IMC will also focus

on comprehensive social security reforms with a view to addressing the gaps and

weaknesses identified and ensuring the provision of a comprehensive social security for

all. This is in line with the governing party’s election manifesto and the recommendations

of the recent policy conference.

Notwithstanding the transitionary matters that SASSA is seized with, we are pleased with

the impressive progress on the other fronts. By end of March 2017, there were 17, 2 million

social grants in payment up from 10, 9 million in 2006. The Child Support Grant remains

the highest followed by the Old Age Grant. On the other hand, SASSA continued to


improve its operational machinery which contributes to positive beneficiary experience.

Currently more than 70% of grants applications are processed within one day, down

from three months in previous financial years.

We continued to reach out to the poor and vulnerable through the Integrated

Community Registration and Outreach Programme (ICROP) and Mikondzo. We will

continue to extend and intensify the reach of our services in these areas driven by our

understanding that eradicating poverty remains our Government’s greatest commitment

and an indispensable requirement for the attainment of the National Development Plan

(Vision 2030). We are also turning our attention to transitioning social grants beneficiaries

into meaningful local economic development opportunities, with specific focus on

revitalising the rural economy through cooperatives.

As we continue our work to tackle the triple challenges of poverty, unemployment and

inequality through the work of SASSA, maintaining a clean administration will remain

our key priority. I would like to thank the Acting CEO, Ms Pearl Bengu, the Executive and

the entire staff of SASSA for the tremendous work they have done in the service of our

people for the period under review.

I look forward to continue working with each one of you in the years ahead as we pave

the way to fulfill SASSA’s constitutional obligation.

Ms BO Dlamini, MPMinister of Social Development 28 August 2017


4. CHIEF EXECUTIVE OFFICER’S OVERVIEW

The 2016/17 financial year marked the first decade of SASSA’s existence and was

characterised by both celebrations of achieving such a milestone as well as some

beneficiaries’ anxieties, created by payment uncertainties leading to 31 March 2017 as

the contract for the payment service provider was coming to an end. The celebration of

the ten years of existence was coordinated in the form of project Mikondzo, to ensure

that targeted communities benefit from increased service delivery initiatives.

Since the establishment of SASSA back in 2006 April, social grants in payment have

increased from 10.9 million to 17.2 million at the end of March 2017. The largest portion

of these social grants is the Child Support Grant (CSG) totalling 12.1 million, followed by

the Old Age Grant (OAG) at 3.3 million. The 17.2 million represents about 31% of South

Africans who are dependent on social grants for survival. Similarly, the value of these

social grants increased during this period by an average of 55%, for example, the OAG

increased from R820 per month in April 2006 to R1 500 in 2016.

Ten years ago, it took SASSA about 90 days and even more to process a social grant. The

turnaround time for processing social grants has drastically been reduced to ten days,

except in the case of Disability Grants (DGs) which require appointments with health

practitioners. I must emphasise the fact that the majority of these grants are processed

within one day.

In line with the norms and standards to ensure that all beneficiaries and the general

public access SASSA offices within acceptable distances, SASSA’s footprint has grown

to 46 district offices, 389 local and 1 163 service offices, and more than 9 900 paypoints

across the nine regions. In addition, mobile offices (trucks) are used to provide services

to areas where SASSA offices are non-existent and citizens are expected to travel long

distances to access services.

The Integrated Community Registration Outreach Programme (ICROP) and project

Mikondzo were used as vehicles to reach out to impoverished communities and through

mobile offices (trucks), services were provided. During the period under review, 631

ICROPs and 31 Mikondzo interventions were conducted. These interventions increased

awareness on the processes involved in the various social grants offered by SASSA and

took services closer to the people as shown by the increase in the number of new

applications; which exceeded the projected target by 47%.

In improving the conditions under which our beneficiaries are served (in the 2016/17

financial year), we managed to audit 367 local offices for functionality in line with our

Ms P S BenguChief Executive Officer (Acting)


norms and standards. The results of this audit will be used to upgrade and/or relocate

offices where the infrastructure does not meet expectations. Similarly, 176 open

paypoints were converted to fixed structures such as community halls and churches.

The Social Relief of Distress Grant (SRD) is needs driven and is meant to assist individuals

and households that are in disastrous situations, which cannot be addressed within their

available resources. The awards processed for this grant also exceeded its planned target

by 15% reflecting the levels of poverty, unemployment and natural disasters that people

in the local areas are faced with. These awards were issued in various forms ranging from

vouchers, school uniforms, cash and food parcels.

SASSA’s mandate to provide social assistance to, among others, foster children continued.

Together with the departments of Social Development and Justice and Constitutional

Development, we managed to process 164 610 Foster Child Grant reviews to enable

eligible recipients to continue receiving social grant benefits.

SASSA has noted the qualified audit opinion for the financial year under review. The areas

which led to this qualification are being considered and the internal control deficiencies

identified are being addressed.

The contract for payment of social grants with Cash Paymaster Services (CPS) signed in

2012, expired on 31 March 2017. SASSA was unable to take over the social grant payment

function from CPS due to the complexities and delays in insourcing of technical expertise

to guide the implementation process. The intervention by the Constitutional Court in

March 2017 saw the extension of the payment contract with CPS for a further 12 months

on, generally, the same terms and conditions. SASSA has accepted the Constitutional

Court order and has begun with the implementation of the process to ensure that CPS

is phased out and that a new service provider(s) takes over the payment of social grants

with effect from 1 April 2018.

The year ahead (2017/18 financial year) appears to be very challenging, but I have

confidence that SASSA will meet these challenges and ensure that our mandate of

administering, managing and paying social grants is met.

SASSA’S FINANCIAL OVERVIEW

Economic viability

SASSA derives its revenue mainly from the funds appropriated from the National Revenue

Fund through the Department of Social Development’s (DSD’s) Vote. Although SASSA’s

baseline has been reducing due to budget cuts implemented to fund other competing

priorities of government, the allocated budget has been apportioned in such a manner

that SASSA is able to continue with its operations. During the period under review,

SASSA was able to carry out its operations within the allocated budget. SASSA’s budget

comprised of transfers received from the DSD amounting to R 6,9 billion and R1,2 billion

of a retained surplus.

FINANCIAL ANALYSIS FOR THE YEAR UNDER REVIEW

Revenue

Since SASSA derives its revenue mainly from the National Revenue Fund and transfers

are made through the DSD’s Vote, the total appropriation for the period under review

amounted to R 6,9 billion. Additional revenue, although insignificant, was derived from

the sale of tender documents, disposal of assets and interest earned.

Expenditure

SASSA continued to place a sharper focus on improving its services to ensure that all

those entitled to social assistance are reached in line with the objectives of the National


Programme Expenditure

Programme

2015/2016 2016/2017

Final Appropriation

ActualExpenditure

(Over)/Under Expenditure

Final Appropriation

ActualExpenditure

(Over)/Under Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

P1: Administration 2,463,766 2,656,852 (193,086) 2,437,495 2,582,891 (145,396)

P2: Benefits Administration 4,179,204 4,247,277 (68,073) 4,471,436 4,643,633 (172,197)

Total 6,642,970 6,904,129 261,159 6,908,931 7,226,525 (317,593)

Development Plan, and in particular, Outcome 13 (an inclusive and responsive social

protection system) of government’s 2014 – 2019 Medium-Term Strategic Framework

(MTSF). For the period under review, there was a need to expand the implementation

of the ICROP for socially excluded people in rural, semi-urban and identified

impoverished wards. The Mikondzo programme was also intensified to meet the needs

of the communities including focused community dialogues and prompt interventions.

These programmes could not be successfully implemented without an integrated

Communication Strategy through which different communities could be engaged. Thus,

SASSA funding and expenditure on goods and services materially followed these plans.

Furthermore, in line with its legislative mandate, SASSA’s focus remains the administration

of grants. Therefore, expenditure is framed within the Agency’s essential operational

requirements to carry out its mandate. In this regard, the majority of expenditure

went towards two of the foremost cost drivers, which are cash handling fees

(R 2 billion) and compensation of employees (R 2,9 billion).

Apart from these two major key cost drivers, expenditure went towards other operational

requirements i.e. office accommodation, security services, cleaning services, computer

services, communication, travel and medical assessment fees for beneficiaries applying

for disability grants.

Irregular, Fruitless and Wasteful Expenditure

Irregular Expenditure

For the year under review SASSA recorded Irregular expenditure amounting to

R 326,159,810 with closing balance of R 1,404,621,602 which mainly comprises of:

Material amounts included in the opening balances:

R 316,447,361 for the bulk enrolment (re-registration) of additional social assistance

grants beneficiaries, children and procurators as well as additional resources required

as a result of the extension of time for the bulk enrolment project. This amount was

disclosed since 2014/15 and the application to condone such is not yet finalised by

National Treasury. The request to condone this transaction was submitted to National

Treasury in 2015/16 and the transaction was condoned after the reporting date then

later withdrawn by National Treasury due to additional information required. To date,

the Agency has not received feedback in this regard. As previously reported, there is a

pending legal action against SASSA and CPS as instated by Corruption Watch. However,

SASSA is not defending the matter until further investigations are concluded.

R 414,050,165 relating to physical security irregular expenditure was recorded in 2015/16.

The irregular expenditure was incurred as a result of security services rendered for both


Head Office and the nine regions, where the initial contracts were concluded for a period

of six months but extended many times due to non-responsive bids which necessitated

extension of the existing contracts until National Treasury reviewed all steps and reasons

to consider and conclude the extension of contracts. National Treasury pronounced

that the extensions were unacceptable and declared the expenditure irregular. SASSA

submitted a request to National Treasury to condone the expenditure and the response

is yet to be received.

R 223,466,398 relating to lease payments were recorded in previous years and this was in

relation to leases that were ceded to the Agency by the provincial Department of Social

Development and SASSA during the period 2006 to 2009, in which adequate acquisition

documents are not available. When finalising the reconciliation and supporting

documentation to be made available to National Treasury for consideration and

condonation, it was realised that an additional irregular expenditure was omitted. The

amount of R 135,507,159 was confirmed as additional to this irregular expenditure which

relates to the same contracts that were reported to in the previous reporting period

ended 31 March 2016. This additional expenditure was for SASSA North West Regional

office where the lease was also improperly entered into in 2007 and expenditure partially

disclosed in the period ended 31 March 2016. The closing total balance as at the end of

2016/17 was then adjusted to R 358,973,557. SASSA has since submitted a request for

condonation to National Treasury and the response is not yet received. All the irregular

leases have since been terminated or expired and a due Supply Chain Management

(SCM) process was then followed to conclude new office accommodation leases.

R 74,603,183 was reported as irregular expenditure in 2015/16. This irregular expenditure

emanates from 2014/2015 when the Office of the Accountant-General reviewed all

stages of the procurement process followed by the Agency in the appointment of a

service provider for forensic investigations for a period of three years. In 2016/17 a final

amount of R 1,448,639 was paid, bringing the total irregular expenditure as at end of

2016/17 to R 75,969,680 after effecting a correction of R 82,142 which was an error

recorded in the previous year. This matter is still under internal review and validation

since SASSA requested the service provider to finalise the close-out report after the court

found that the awarding of the contract to the second highest scoring bidder instead

of the highest scoring bidder was irregular and invalid. Although the court did not set

aside the contract, SASSA could not proceed with an irregular contract. The outcome of

the review process will inform further processes to be followed to bring this matter to its

logical conclusion.

SASSA appeared before the Standing Committee on Public Accounts (SCOPA) to

account for the R 1,140,306,898 irregular expenditure disclosed in 2015/16 financial year

which included the above mentioned major expenditure items. However, the SCOPA

resolutions were not finalised and communicated to the Agency to date.

Irregular expenditure – current year amounting to R 326,159,810

The irregular expenditure for the current year is made up of an amount of R 135,507,159

identified during the reporting period for the lease payments partially disclosed in the

2015/16. On reconciliation of the irregular expenditure for office accommodation, an

amount was partially accounted without considering a new service provider which

the lease contracts were ceded to. This amount was then identified and confirmed as

additional to the already disclosed as irregular expenditure for the period ended 31

March 2016. This additional expenditure relates to office accommodation in respect of

the SASSA North West regional office where the lease was improperly entered into in

2007 and expenditure partially disclosed in 2015/16 financial year.

SASSA considered a deviation from competitive bidding in the appointment of work

streams and work stream leaders in order to implement a Ministerial Advisory Report,

which was done to:

§§ Retain knowledge and experience of SASSA, the sector, the industry, the

challenges and possible interventions.


§§ Attempt to fast-track acquisition of technical skills required before submission of

the Constitutional Court report on the decision of SASSA given that bids received

in 2015 were considered and found to be non-responsive.

§§ Consolidate the institutional memory and understanding of what needs to be

done, thus speed up the implementation of the project

§§ Build dedicated capacity on a full-time basis with a performance agreement,

linked to individual deliverables and associated costs.

National Treasury reviewed the SCM processes for the appointment of the Work streams

to assist SASSA to implement a Ministerial Advisory Report. It has since found that

the appointment process and the reasons provided are not consistent with the SCM

process; hence the appointment was declared irregular by National Treasury. SASSA is in

the process of engaging National Treasury to clarify and understand National Treasury’s

interpretation of the process and the reasons for deviation. An amount of R 43,242,143

was spent on the work of the work streams.

The rest of the remaining current year irregular expenditure relates to extension of

contracts and leases without due SCM processes, approval delegations and other non-

compliance to the applicable procurement process.

SASSA has three matters that have been reported as possible irregular expenditure since

the assessment report is not yet received from National Treasury. The one expenditure

relates to the contract for Diagnostic Risk Assessment Heat Maps. The contract amounting

to R 16, 815,110 has been considered by the Office of Accountant General. The review

relates to all stages of the procurement process undertaken by SASSA to appoint a

service provider for Diagnostic Risk Assessment Heat Maps, Implementation plans and

pay points risk assessment. The review has not yet been finalised.

In the year under review SASSA’s possible irregular expenditure increased to

R 150,055,158 compared to R 16,815,110 reported in 2015/16. This was due to two

contracts identified in 2016/17 of which the details are as follows:

SASSA has contracted service provider for ICROP programme, however, the Agency notes

some allegations that the company might have provided misleading information in their

bid proposals which the Agency relied on when awarding the tender. The Agency is in

the process of establishing the facts and verification thereof in order to conclude on the

matter. The amount of expenditure amounted to R 115,922,034

The extension of ICT contract was concluded at the beginning of the month of May

2016. National Treasury issued SCM Instruction No.3 of 2016/2017 towards the end of

April 2016 with the effective implementation date of the 1st of May 2016. However,

the practice note came when the approval process was at the advanced stage, and

the Agency was not in a position to implement the instruction due to the fact that

the Agency became aware after approval. The amount of expenditure amounted to

R 17,318,014

Fruitless and Wasteful Expenditure

The Agency has reported the closing balance of R 6,549,107 for the year under review.

In 2016/17 R 420,207 of write off and R 377,753 recoveries were made in respective of

finalised cases. These amounts appear insignificant compared to the previous year. This

is due to reclassification of accounts. Damages and losses were previously classified as

fruitless and wasteful expenditure. However, such has been separated where R 4,945,793

was then removed from fruitless and wasteful expenditure as it relates to damages and

losses.


Supply Chain Management

The new Payment system for distribution of social assistance grants was expected to be

completed for implementation with effect from 1 April 2017. However, due to delays in

the finalisation of business and related processes, SASSA was unable to conclude any

contract. The CPS contract was then extended for a 12-month period, based on the

Constitutional Court ruling.

Secondly, the Agency has experienced elements of non-compliance to Supply Chain

Management prescripts and such are dealt with through the Financial Misconduct Board.

The application of a consequence management process has also been considered to

ensure non-compliance is significantly reduced.

Inventories

The closing balance for the year under review was R 15,500,095 compared to

R 16,956,005 recorded in the previous year. This resulted in a decrease of 8.6%.

The Agency continued to apply the first in first out (FIFO) method valuing inventory, in

line with the Accounting Policy.

Discontinued activities or activities to be discontinued

No significant portion of the SASSA’s operations was discontinued during the year under

review.

Asset Management

Newly-acquired assets (additions and transfers) to the value of R 166,240,490 of property,

plant & equipment was recorded in the fixed asset register. SASSA has implemented the

Generally Recognised Accounting Practice (GRAP) standards relevant to the management

and accounting of assets to ensure that assets are maintained to a desired level of service

whereby assets should provide service at the lowest life cycle cost. The internal controls

in compliance with the asset management policy and the treasury guidelines for the

period under review were implemented. Lost and stolen assets were retired from the

fixed assets register in the period in which the loss occurred and accounted for in the

correct accounting period.

SASSA’s assets as per the General Ledger and the Fixed Asset Register at carrying value

inclusive of intangible assets:

Opening Balances at carrying value Additions and transfer in Disposals Depreciation and Amortisation Total Value

R 816,839,794 R 166,240,490 (R 10,858,222) (R 113,964,179) R 858,257,883

I conclude by applauding the leadership role provided by the Minister and Deputy Minister of Social Development in ensuring that the poor and those engulfed by disasters are

supported during hardships.

Ms P S BenguChief Executive Officer (Acting)31 July 2017


5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT

To the best of my knowledge and belief, I confirm the following:

All information and amounts disclosed in the Annual Report is consistent with the

Annual Financial Statements audited by the Auditor-General.

The Annual Report is complete, accurate and is free from any omissions.

The Annual Report has been prepared in accordance with the guidelines on the Annual

Report as issued by National Treasury.

The Annual Financial Statements (Part E) have been prepared in accordance with

the Generally Recognised Accounting Practice (GRAP) including any interpretations,

guidelines and directives issued by the Accounting Standards Board applicable to the

public entity.

The accounting authority is responsible for the preparation of the Annual Financial

Statements and for the judgements made in this information.

The accounting authority is responsible for establishing, and implementing a system

of internal control designed to provide reasonable assurance as to the integrity and

reliability of the performance information, the human resources information and the

Annual Financial Statements.

The external auditors are engaged to express an independent opinion on the Annual

Financial Statements.

To my knowledge, the Annual Report fairly reflects the operations, the performance

information, the human resources information and the financial affairs of the public

entity for the financial year ended 31 March 2017.

Yours faithfully

Ms P S BenguChief Executive Officer (Acting)31 July 2017


6. STRATEGIC OVERVIEW

6.1. VISION

A leader in the delivery of social security services

6.2. MISSION

To administer social security services to eligible children, older persons and people with

disabilities (PWDs).

6.3. VALUES

SASSA, as a Section 3A public entity, subscribes to those values that promote democracy,

redress, social cohesion and a culture of respect for human rights underpinned by the

following values:

Transparency SASSA will share with stakeholders information about how it conducts its business.

Equity SASSA is committed to the fair and impartial treatment of all its stakeholders including the customer.

Integrity SASSA is committed to being honest, fair and accountable in dealing with its operations, finances and other businesses.

Confidentiality SASSA will ensure that all stakeholder information will be protected and be made accessible only to those authorised to access it.

Customer Centric SASSA will take the needs of its customers into consideration by developing user-friendly and quality products and services.

6.4. SASSA PRIORITIES

SASSA key priorities for the 2014 – 2019 MTSF period are:

§§ Reducing income poverty by providing social assistance to eligible individuals.

§§ Improving service delivery.

§§ Improving internal efficiency.

§§ Institutionalising a social grants payment system within SASSA.

7. LEGISLATIVE AND OTHER MANDATES

7.1 CONSTITUTIONAL MANDATE

SASSA derives its mandate from the Constitution of the Republic of South Africa, (Act 108

of 1996). Section 27(1) (c) of the Constitution states that “everyone has the right to social

security, including if they are unable to support themselves and their dependents, appropriate

social assistance.”

7.2 LEGISLATIVE MANDATES

The following laws constitute the legal framework for the operations of the South African

Social Security Agency:

Social Assistance Act, (Act 13 of 2004, as amended)

The Social Assistance Act (2004, as amended), provides for the rendering of social

assistance to eligible persons; for mechanisms for the rendering of such assistance; and

to provide for matters connected therewith.


South African Social Security Agency Act, (Act 9 of 2004)

The South African Social Security Agency Act (2004) provides for the establishment of

SASSA with the objective of ensuring effective and efficient administration, management

and payment of social assistance, to provide for the prospective administration and

payment of social security including the provision of services related thereto and to

provide for matters connected therewith.

7.3 POLICY MANDATES

White Paper on Social Development (1998)

The objectives for social security in South Africa are reflected in the Government’s 1997

White Paper on Social Development, which states that “a social security system is essential

for healthy economic development, particularly in a rapidly changing economy, and will

contribute actively to the development process. It is important for immediate alleviation

of poverty and is a mechanism for active redistribution.”

National Development Plan 2030

According to the National Development Plan 2030, South Africa needs to pay careful

attention to the design of policies between now and 2030 to ensure that vulnerable

groups and citizens are protected from the worst effects of poverty. These social

protection measures seek to support those most in need, including children, people

with disabilities and the elderly. In addition, they will promote active participation in

the economy and society for those who are unemployed and under-employed through

labour market activation measures, employment services, income support programmes

and other services to sustain and improve quality of life.

The plan acknowledges that the country has built an advanced and comprehensive

social protection system with wide reach and coverage, but the system is still fragmented,

plagued by administrative bottlenecks and implementation inefficiencies. As a result,

the various elements of the social protection system are not operating seamlessly. The

priority should be improving efficiency in the delivery of services, addressing exclusions

by identifying and reaching those who are entitled to the existing benefits of social

protection and reducing the administrative bottlenecks that prevent people from

accessing benefits.


8. ORGANISATIONAL STRUCTURE

THE SOUTH AFRICAN SOCIAL SECURITY AGENCY

BRANCH: INTERNAL AUDIT & RISK

MANAGEMENT

BRANCH:CORPORATE SERVICES

BRANCH: FINANCIAL

MANAGEMENT

BRANCH: INFORMATION &

COMMUNICATION TECHNOLOGY (ICT)

BRANCH: GRANTS OPERATIONS

BRANCH: POLICY

IMPLEMENTATION SUPPORT

BRANCH:STRATEGY & BUSINESS

DEVELOPMENT

OFFICE OF THE CEO

CHIEF EXECUTIVE OFFICER

DEPARTMENT: INTER-GOVERNMENTAL & STAKEHOLDER RELATIONS

DEPARTMENT: SECURITY MANAGEMENT

DEPARTMENT: FRAUD MANAGEMENT AND

COMPLIANCE

DEPARTMENT: ENTERPRISE PROGRAMME

MANAGEMENT OFFICE (EPMO)

REGIONAL OFFICES X 9



PART B:PERFORMANCE INFORMATION


1. AUDITOR’S REPORT: PREDETERMINED OBJECTIVES

The AGSA currently performs the necessary audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion. The audit conclusion

on the performance against predetermined objectives is included in the report to management, with material findings being reported under the subsection of the Auditor’s report.

Refer to page 88-93 of the Auditors Report, published as Part E: Financial Information.


2. SITUATIONAL ANALYSIS

2.1. SERVICE DELIVERY ENVIRONMENT

The mandate of SASSA is to provide social assistance to all eligible beneficiaries. The

social assistance programme makes provision for income support for the older persons,

people with disabilities, children and social relief of distress to individuals and households

which experience sudden destitution. Social assistance is South Africa’s largest safety

net against destitution and poverty and promotes social and financial inclusion. South

Africa’s population was estimated at 55.91 million in 2016 (StatsSA, 2016). The General

Household Survey (GHS, 2015) reported that the number of households that receive at

least one social grant increased from 29.9% in 2003 to 45.5% in 2015. More than one-

third of individuals in the Eastern Cape (40.3%), Limpopo (38.2%), Northern Cape (36.9%)

and KwaZulu-Natal (36.8%) were grant beneficiaries, compared to 17.5% in Gauteng

and 22% in Western Cape. Similarly, more than half of households in the Northern Cape

(59.9%), Eastern Cape (59.2%), Limpopo (57.6%), KwaZulu-Natal (53.1%), Free State

(52.4%) and Mpumalanga (51.3%) received at least one form of grant compared to 30.8%

of households in Gauteng and 37% of households in Western Cape. More than one-third

of black African individuals (33.5%) received a social grant, compared to 27% of coloured

individuals, and 12% of Indian/Asian individuals. By comparison, only 6.3% of the White

population received social grants.

South Africa has been experiencing persistent high levels of unemployment for long

periods, which in the first quarter of 2017 was reported to be 26.5%. The unemployment

levels have a direct impact on the demand for the Child Support Grant and Social Relief

of Distress that grew by 1.38% and 26% respectively. In March 2017 (end of the financial

year), SASSA paid 17 200 525 social grants. The number of social grants in payment grew

by 1.23% or 208 891 from the previous financial year.

In addition to the social grants, 461 750 awards of social relief of distress was made

to individuals and households to rescue them from destitution, undue hardship and

disasters. “Hidden Hunger in South Africa, Oxfam” (2014) reported that one in four people

in South Africa suffers hunger on a regular basis, while more than half the population

live under such precarious circumstances that they are at risk of going hungry. The

General Households Survey (GHS) (2015) reported that between 2002 and 2015, the

percentage of households that experienced hunger decreased from 23.8% to 11.3%

while the percentage of individuals who experienced hunger decreased from 29.3% to

13.1%. According to the report, the extent of food insecurity in South Africa has dire long

term consequences for both health and productive capacity of its citizens. Groups who

are particularly vulnerable to food insecurity and hunger include the aged, people with

disabilities, children, women, child or youth-headed households, farmworkers, seasonal

workers and the unemployed. The demand for social relief of distress has been increasing

over the years. In response to the increasing challenges and demands, government

spent R 587 million on social relief of distress in 2016/17.

In line with the Social Assistance Act (2004), the funds were used for an immediate

response to crisis situations. Priority was given to South African citizens, permanent

residents and refugees with insufficient means. Primarily, the focus was on social

assistance applicants awaiting payment of an approved grant; individuals who were

assessed as medically unfit to undertake remunerative work for a period of less than six

months; families/individuals of whom the breadwinner had died or admitted to a State

institution; and families/individuals affected by disasters.

While evidence demonstrated that SASSA was highly effective in targeting the poor

for social assistance with a coverage rate of 82.48%, rated among the best coverage in

the world, the estimated 1.83 million children excluded from support has been SASSA’s

priority in the period under review. The urgency to enable full inclusion of all eligible

infants to reduce the infant mortality rate had resulted in SASSA employing additional

staff to conduct outreach programmes and home visits to promote early enrolment of

infants.


Table 1 below depicts the uptake rates of different grant types in the last 11 years. Between April 2006 and March 2017, the total number of social grants increased from 12 015 059

to 17 200 525 grants, and the growth of social grants over this period was 43%. This increase was mainly driven by the CSG, Old Age Grant (OAG) and Grant-in-Aid (GIA) which have

shown significant upward trends over the years due to policy changes, while the War Veterans Grant (WVG) and Disability Grant decreased steadily.

Table 2 below depicts the social grants expenditure since 2006/07 financial year.

Table 3 below depicts the number of social grants by grant type and region as at 31 March 2017.

Table 1: Number of Social Grants by Grant Type

Grant type 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

Old Age 2,195,018 2,229,550 2,390,543 2,546,657 2,678,554 2,750,857 2,873,197 2,969,933 3,086,851 3,194,087 3,302,202

War Veteran 2,340 1,924 1,500 1,216 958 753 587 429 326 245 176

Disability 1,422,808 1,408,456 1,286,883 1,264,477 1,200,898 1,198,131 1,164,192 1,120,419 1,112,663 1,085,541 1,067,176

Grant in Aid 31,918 37,343 46,069 53,237 58,413 66,493 73,719 83,059 113,087 137,806 164,349

Care Dependency

98,631 102,292 107,065 110,731 112,185 114,993 120,268 120,632 126,777 131,040 144,952

Foster Child 400,503 454,199 474,759 510,760 512,874 536,747 532,159 512,055 499,774 470,015 440,295

Child Support 7,863,841 8,189,975 8,765,354 9,570,287 10,371,950 10,927,731 11,341,988 11,125,946 11,703,165 11,972,900 12,081,375

Total 12,015,059 12,423,739 13,072,173 14,057,365 14,935,832 15,595,705 16,106,110 15,932,473 16,642,643 16,991,634 17,200,525

Annual Growth/Contraction

3.40% 5.20% 7.50% 6.20% 4.42% 3.27% -1.08% 4.46% 2.1% 1.23%

Source: SOCPEN System


Table 2: Social Grants Expenditure per Grant type

Grant Type

2006/07R’000

2007/08R’000

2008/09R’000

2009/10R’000

2010/11R’000

2011/12R’000

2012/13R’000

2013/14R’000

2014/15R’000

2015/16R’000

2016/17R’000

OAG 21,222,000 22,803,047 25,933,971 29,826,420 33,750,600 37,129,812 40,475,021 44,064,239 49,039,940 53,132,206 58,320,617

WVG 25,000 21,845 19,692 16,644 13,976 11,848 9,543 7,657 6,157 4,843 3,849

DG 14,261,000 15,281,403 16,473,425 16,566,681 16,840,182 17,375,021 17,636,570 17,768,631 18,741,885 19,165,931 19,926,031

FCG 2,851,000 3,414,315 3,934,756 4,434,346 4,616,442 5,010,915 5,335,049 5,332,093 5,413,209 5,406,786 5,326,151

CDG 1,006,000 1,132,102 1,292,470 1,434,143 1,586,452 1,736,431 1,877,412 1,993,084 2,211,583 2,394,456 2,613,647

CSG 17,559,000 19,625,983 22,348,556 26,669,761 30,341,465 34,319,636 38,087,990 39,623,748 43,718,425 47,308,536 51,476,941

GIA 67,000 87,000 90,000 146,295 170,052 204,026 237,974 274,092 371,121 503,080 650,308

SRD 41,000 106,244 623,012 165,458 173,737 185,298 239,289 533,047 455,718 407,016 587,639

Total 57,032,000 62,471,939 70,715,885 79,259,748 87,492,906 95,972,987 103,898,845 109,596,591 119,958,038 128,322,854 138,905,183


Table 3: Number of Social Grants by Grant Type and Region as at 31 March 2017

Region OAG WVG DG GIA CDG FCG CSG Total % of total

EC 548,933 29 181,491 20,540 22,370 104,910 1,876,348 2,754,621 16.0%

FS 193,804 1 74,788 4,170 7,880 33,196 676,120 989,959 5.8%

GP 548,422 55 114,088 5,466 18,536 50,379 1,776,247 2,513,193 14.6%

KZN 662,767 23 242,412 52,484 39,871 92,060 2,788,600 3,878,217 22.5%

LP 451,691 7 94,470 37,145 14,968 47,921 1,780,010 2,426,212 14.1%

MP 241,271 4 76,921 10,262 10,995 32,087 1,067,239 1,438,779 8.4%

NW 247,703 3 77,245 9,392 10,003 35,134 830,177 1,209,657 7.0%

NC 83,914 4 50,386 8,761 5,987 13,657 303,199 465,908 2.7%

WC 323,697 50 155,375 16,129 14,342 30,951 983,435 1,523,979 8.9%

Total 3,302,202 176 1,067,176 164,349 144,952 440,295 12,081,375 17,200,525 100.0%

% total 19.2% 0.0% 6.2% 0.96% 0.84% 2.56% 70.24% 100.0%



Table 3 shows that KwaZulu-Natal has the highest number of social grants (3,878,217),

followed by the Eastern Cape (2,754,621), Gauteng (2,513,193) and Limpopo (2,426,212).

Northern Cape had the lowest number of social grants at 465,908. The Child Support

Grant accounts for the largest number of social grants of 12,081,375, followed by Old

Age Grant 3,302,202 and Disability Grant of 1,067,176. War Veteran Grant has the lowest

at 176.

2.2. ORGANISATIONAL ENVIRONMENT

SASSA’s objectives published in the 2014/15 to 2018/19 Strategic Plan remain

unchanged. In its quest to successfully execute its mandate certain critical positions were

filled through movement of the existing senior managers and new appointments. The

erstwhile CEO’s contract expired during May 2016 and thereafter the Executive Manager

Business and Strategy Development acted in the position of the CEO until November

2016 when the new CEO of SASSA was appointed.

In the financial year 2016/17, three Regional Executive Managers (REMs) seconded

to Head Office continued to provide administrative support on the insourcing of the

envisaged social grant payment system. It should be noted that this arrangement was

however reviewed in the course of the year seeing REMs moving back to regions leaving

one REM leading the programme. Acting arrangements were put in place to ensure

continued service delivery.

SASSA’s budget structure for the 2016/17 financial year comprised of two programmes,

namely:

Programme 1: Administration

The Administration Programme provides leadership, as well as management and support

services, which include the following sub-programmes: Executive Management; Internal

Audit and Risk Management; Corporate Services; Financial Management; Information &

Communication Technology (ICT); and Strategy and Business Development.

Programme 2: Benefits Administration and Support

The Benefits Administration and Support Programme provides a grant administration

service and ensures that operations within SASSA are integrated. The programme

manages the full function of grant administration from application to approval, as well

as beneficiary maintenance.

2.3. KEY POLICY DEVELOPMENTS AND LEGISLATIVE CHANGES

The key policy and legislative changes effected in the 2016/17 financial year were as

follows:

Change to regulation 21 of the Social Assistance Regulations, promulgated in terms of the

Social Assistance Act (2004), which changed the method of payments for social grants,

to either payment into a bank account of a beneficiary’s choice or a method determined

by SASSA. This change was intended to block the scourge of electronic fund transfer

(EFT) debits and sales of prepaid airtime and electricity to grant beneficiaries and was

published in May 2016. However, SASSA and the Department of Social Development’s

interpretation (intention to block the scourge of EFT debits) of this amended regulation

was legally challenged. The matter was heard in the High Court in October 2016 and

judgement was reserved.

The other amendment was on Regulation 26A, which merely served to clarify that

no funeral policy deductions could be made from children’s grants, or any grant of a

temporary nature. This amendment was introduced to curb the increasing incidents

of design of products customised to target the children’s grant. The standpoint is that

the primary care giver who draws the grant is only the conduit for the money, which is


intended to support children. Anything that erodes the value of the already limited grant

cannot be condoned.

2.4. STRATEGIC OUTCOME ORIENTED GOAL

Strategic Outcome Oriented Goal

Expand access to social assistance and creating a

platform for future payment of social security benefits.

Goal Statement To render social assistance to eligible beneficiaries

3. PERFORMANCE INFORMATION BY PROGRAMME

3.1. PROGRAMME 1: ADMINISTRATION

Purpose

To provide leadership, management and support services to SASSA.

Description

This programme aims to ensure effective leadership and administrative support

services within SASSA.

The programme consists of the following sub-programmes:

§§ Executive Management – this sub-programme is comprised of the Office of the

CEO and related support services including, Fraud and Compliance Management,

Communication and Legal Services.

§§ Internal Audit and Risk Management – this sub-programme is responsible for

the provision of internal audit assurance and risk management.

§§ Corporate Services – the main responsibility of this sub-programme is the

provision of corporate support services to the entire organisation. It comprises

of Human Capital Management, Facilities Management, Security Services, and

Auxiliary Support Services. In addition, the sub-programme is responsible for

office accommodation, which ensures the provision and maintenance of suitable

office space, lease administration and cleaning services.

§§ Financial Management – the sub-programme prepares financial plans and

monitors the national and regional budgets and expenditure. It is also responsible

for the management of the Agency’s accounting and procurement system.

§§ Information and Communication Technology (ICT) – this sub-programme

ensures the development of ICT systems to support key business processes and

effective utilisation of related solutions.

§§ Strategy and Business Development – is responsible for effective planning,

improves operational efficiency, develops new products and oversees the

implementation of policies through monitoring and evaluation.


Table 4: Strategic objectives, performance indicators planned targets and actual achievements: Sub-programme 1.1 Executive Management

Programme 1: AdministrationSub-programme 1.1: Executive Management

Strategic objective: To promote good governance in the management of the Agency

No. Performance Indicator

Actual Achievement

2015/16

Planned Target 2016/17 Actual Achievement 2016/17

Deviation from planned target to Actual

Achievement for 2016/17

Comment on deviations

1. Number of internal audit reviews conducted on high risk areas.

34 out of 40 internal audit reviews conducted on high-risk areas.

20 internal audit reviews conducted on high risk areas.

Achieved.

23 internal audit reviews were conducted on high risk areas.

3 Additional high risk areas were identified for review.

2 Number of fraud, theft and corruption awareness programmes conducted.

* 72 fraud, theft and corruption awareness programmes conducted across the 9 regions.

Achieved.

72 fraud, theft and corruption awareness programmes conducted.

Performance breakdown

Location Target No. of awareness programmes conducted

EC 8 13FS 8 7GP 8 9KZN 8 8LP 8 3MP 8 9NC 8 6NW 8 8WC 8 7HO - 2Total 72 72

None. None.

* Indicator/target did not exist in 2015/16





Actual Achievement

2015/16





3. Percentage of reported fraud, theft and corruption cases investigated within 90 days of receipt.

83% (927 out of 1122) of reported fraud, and corruption cases were investigated.

70% of reported fraud, theft and corruption cases investigated within 90 days of receipt.

Not achieved.

65% (262 out of 405) of reported fraud, theft and corruption cases investigated within 90 days of receipt.


Location ReceivedInvestigated

within 90 days

%

EC 50 36 72%FS 26 3 12%GP 70 53 76%KZN 103 80 78%LP 20 13 65%MP 38 17 45%NC 8 3 38%NW 26 11 42%WC 63 46 73%HO 1 - -Total 405 262 65%

(5%) Attention was given to syndicate cases which are complex and time consuming.

Intervention teams will be deployed to regions with high number of cases to be investigated.





Actual Achievement

2015/16





4. Percentage of fraud, theft and corruption cases investigated (backlog).

839 backlog cases were investigated.

100% of fraud, theft and corruption cases investigated (backlog).

Not achieved.

81% (933 out of 1 147) of fraud, theft and corruption cases investigated (backlog).


LocationNo. of

backlog cases

No. of backlog

cases investigated

%

HO 27 - -

EC 72 45 63

FS 93 68 73

GP 107 81 76

KZN 720 630 88

LP 6 9 150

MP 25 22 88

NC 11 8 73

NW 46 38 83

WC 40 32 80

Total 1 147 933 81

(19%) Non-achievement is attributed to lengthy complex investigations and special projects that were prioritised during the financial year.





Actual Achievement

2015/16





5. Percentage of legal opinions finalised within 10 working days.

99.56% (980 out of 984) of legal opinions drafted within 10 days upon receipt of all documents.

100% of legal opinions were finalised within 10 working days.

Not achieved .

98% (233 out of 239) of legal opinions finalised within 10 days.


Location

No. of legal

opinions received

No. of legal opinions finalised within 10

working days

%

HO 12 11 92

EC 6 6 100

FS 5 5 100

GP 5 5 100

KZN 112 112 100

LP 9 9 100

MP 28 23 82

NC 44 44 100

NW 18 18 100

WC - - -

Total 239 233 98

(2%) Further research was required in some of the requested opinions, thus failure to finalise within 10 days.





Actual Achievement

2015/16





6. Percentage of contracts drafted within 10 working days of written instruction with supporting documents.

99.74% (756 out of 758) of contracts drafted within 7 days of referral and receipt of all necessary documents, 2 of the contracts were, due to the need for further information and research, drafted outside 7 days.

100% of contracts drafted within 10 working days of written instruction with supporting documents.

Achieved.

100% (1009 out of 1009) of contracts drafted within 10 working days of written instruction with supporting documents.


LocationNo. of

contracts received

No. of contracts drafted

within 10 working

days

%

HO 125 125 100

EC 331 331 100

FS 18 18 100

GP 31 31 100

KZN 136 136 100

LP 58 58 100

MP 86 86 100

NC 66 66 100

NW 158 158 100

WC - - 100

Total 1009 1009 100

None. None.


Table 5: Strategic objectives, performance indicators planned targets and actual achievements: Sub-programme 1.2: Corporate Services

Programme 1: Administration Sub-programme 1.2: Corporate Services

Strategic objective: To provide human capital management, facilities and auxiliary services


Actual Achievement 2015/16





1. HR Plan reviewed (focusing on the 2 step Grants Application process and enrolment).

SASSA’s HR plan was reviewed.

HR Plan reviewed (focusing on the 2 step Grants Application process and enrolment).

Achieved.

HR plan was reviewed to accommodate the outcome of the capacity model on enrollment function within the grant process.

None. None.

2. Capacity model reviewed (focusing on the 2 step Grants Application process and enrolment).

* Capacity model reviewed (focusing on the 2 step Grants Application process and enrolment.

Achieved

Capacity model was reviewed.

The model looked at the enrolment function as it is currently done, including card issuance, maintenance as well as biometrics. Based on these transactions, capacity requirements to perform the enrolment function within the grant process are estimated at 640 staff across the country.

None. None.











3. Percentage of funded posts filled.

96 % of funded posts were filled.

95% of fundedposts filled.

Achieved.

96% of funded posts filled.

§§ Funded posts as at 1 April: = 8 943 (8 460 filled posts + 483 vacant funded posts).

§§ Filled posts as at 31 March 2017: = 8 544.

§§ 8 544/ 8 943 = 96%.


Location % of funded posts filled

EC 94%

FS 97%

GP 96%

KZN 98%

LP 94%

MP 96%

NC 97%

NW 99%

WC 93%

HO 92%

Total 96%

In addition, there were 805 contract workers comprising EPWP (496), interns (60), other contracts (249). This brings the total number of employees to 9 349 at the end of March 2017.

None. None.










4. Co-sourcing registry model implemented.

* Co-sourcing for 5 regions concluded.

Achieved

Co-Sourcing of registries (beneficiary record management centres) for 5 regions (NW, WC, GP, KZN and FS) concluded. This includes conclusion of contracts and migration of beneficiary files.

None. None.

5. Number of local offices audited for functionality.

Terms of Reference for the auditing of local offices developed and presented to the Bid Adjudication Committee (BAC).

367 local of offices audited for functionality.

Achieved

367 local offices were audited for functionality.

None. None.











6. Number of open pay points converted to fixed structures.

262 Open pay points were converted to fixed structures, of which: 91 steel structures constructed and171 were migration to community structures.

150 open pay points converted to fixed structures.

Achieved.

176 open pay points were converted to fixed structures.


Location No. of open pay points converted

EC 22

FS -

GP -

KZN 14

LP 64

MP 5

NC 3

NW 68

WC -

Total 176

Of the 176, there were 96 steel structures constructed and 80 were migration to community structures.

26. Overachievement is attributed to pay points that were rolled over from the previous financial year.


Table 6: Strategic objectives, performance indicators planned targets and actual achievements: Sub-programme 1.3 Information and Communication Technology


Sub-programme 1.3: Information and Communication Technology (ICT)

Strategic objective: Effective ICT operations



Planned Target 2016/17


Deviation from planned

target to Actual Achievement for

2016/17


1. Biometric Solution for staff and beneficiaries acquired and implemented.

The Request for Proposal (RFP) for the procurement of the Biometric Access Solution for staff was withdrawn due to insufficient definition of requirements that led to ambiguity of evaluation criteria.

Biometric access to systems for staff and beneficiaries acquired, configured and piloted.

Not achieved.

Terms of Reference were concluded.

The Request for Proposal (RFP) was advertised.

Biometric access to systems for staff and beneficiaries was not acquired, configured and piloted.

The project was included in the overall New Insourcing Payment Model as part of the SASSA Transition Programme to ensure streamlining and integration of solution implementation. As such, project timelines were affected.

2. Percentage of users migrated from Novell System to Microsoft Platform.

253 Users were migrated to Microsoft platform.

100% of users migrated from Novell System to Microsoft Platform.

Achieved.

100% (9715) of users migrated from Novell to Microsoft Platform

None. None.

3. Network connectivity infrastructure upgraded.

* Network connectivity Infrastructure upgraded (Head Office, Regional Offices and Registries).

Not Achieved.

Mpumalanga registry and Eastern Cape regional office were upgraded.

Head office, 8 registries, and 8 regional offices were not upgraded.

Prolonged industrial action on the part of the service provider (Telkom) delayed the project implementation. However, Telkom and SASSA have reached an agreement and a project will be finalised in the 2017/18.












2016/17


4. Automated and digitized Grants Administration System implemented.

The scanning Solution for Social Grants Administration was procured. The process of establishing Scanning Bureaus (Scanning Operations Centres) in the regions commenced with pilot projects in two regions viz. North West and Limpopo.

Back scanning solution implemented in 9 regional registries.

Not achieved.

The back scanning solution was implemented in 4 regions (NW, LP, WC and NC).

At the end of the financial year, work had commenced in 3 other regions (GP, KZN and MP) and will be completed in April 2017.

Back scanning was not fully implemented in five (5) regional registries.

The sites and office accommodation were not ready for the establishment of the Scanning Bureaus in compliance with specifications.

Remaining regions are prioritized in the 2017/18 financial year.

On-going scanning piloted in 9 local offices.

Not achieved.

The solution was built and tested in two local offices in the WC.

On-going scanning not piloted in 7 local offices.

Ongoing scanning in the 7 local offices will be aligned with the ICT network infrastructure upgrade project targeted for completion in the next financial year.

In-house Interim Queue Management system was developed based on the current business processes and requirements. Pilot roll out was run in Benoni Local Office.

Electronic queue management solution procured and piloted.

Not achieved. Electronic queue management solution was not procured and piloted.

The projects were included in the overall New Insourcing Payment Model as part of the SASSA Transition Programme to ensure streamlining and integration of solution implementation. As such, project timelines were affected.

The design phase for SRD on SOCPEN enhancement was completed.

Web-interface solution procured and implemented.

Not achieved. Web-interface solution was not procured and implemented.











2016/17


5. Enterprise Business Intelligence (BI) solution developed and implemented.

The Enterprise BI Solution was procured and the design of the Data Warehouse was completed.

Enterprise Business Intelligence solution implemented for grants data.

Achieved.

The Grants Administration reporting solution was developed and implemented.

None. None.

6. Support systems automated (HCM & SCM).

* HCM and Financial Management support systems automation Business Case and implementation plan developed.

Achieved.

HCM and Financial Management support systems automation Business Case and implementation plan was developed.

None. None.



Table 7: Strategic objectives, performance indicators planned targets and actual achievements: Sub-programme 1.4: Financial Management


Sub-programme 1.4: Financial Management

Strategic objective: Effective Financial Management


Actual Achievement

2015/16


Deviation from planned target to

Actual Achievement for 2016/17


1. Unqualified audit outcome achieved.

SASSA received an unqualified audit outcome for the 2014/15 financial year.

Unqualified audit outcome achieved.

Achieved.

SASSA received an unqualified audit outcome for the 2015/16 financial year

None. None.

2 Percentage of eligible suppliers paid within 30 days.

91.63% (5 253 of 5 733) of eligible suppliers were paid within 30 days.

100% eligible suppliers paid within 30 days.

Not Achieved.

96% of (4 603 out of 4 781) eligible suppliers paid within 30 days.


Location SuppliersSuppliers

paid within 30 days

% >30

HO 387 367 95 20EC 710 705 99 5

FS 326 314 96 12

GP 346 333 96 13KZN 739 739 100 -

LP 490 480 98 10MP 401 397 99 4NC 384 370 96 14

NW 503 442 88 61WC 495 456 92 39Total 4 781 4 603 96 178

(4%) Disputed invoices and delays by suppliers to provide required information.

Changes in suppliers’ information, without submitting the new banking details to SASSA or the Central Supplier Database (CSD) for updating.



Sub-programme 1.4: Financial Management

Strategic objective: Effective Financial Management


Actual Achievement

2015/16


Deviation from planned target to

Actual Achievement for 2016/17


3. Percentage of social assistance debts recovered and/or written off.

1.2% of social assistance debts was recovered to the value of R 7,217,550.36.

R 42,642,957 was submitted to the Department of Social Development (DSD) for write off.

5% of social assistance debts recovered and/or written off.

Not achieved.

2% of social assistance recovered to the value of R 12,907,916.43.

(Debt book =R 814,359,863.19 Value of 5% target =R 40,717,993.16).


Location Debt Book (R) Collected (R) %EC 265,621,364.67 3,939,176.85 1FS 8,580,868.14 748,766.33 9GP 21,035,667.95 910,575.19 4KZN 480,900,726.65 2,717,112.43 1LP 16,081,650.57 2,094,866.62 13MP 5,220,808.30 697,467.31 13NC 3,796,691.36 511,333.68 13NW 7,334,051.65 1,069,190.52 15WC 5,788,033.90 219.427.50 4Total 814,359,863.19 12,907,916.43 2

Five regions exceeded their annual target. Challenges remain in EC and KZN, both of which account for 92% of the social assistance debt.

-3%

(R 27,810,076.73)

Write offs for two financial years 2015/16 and 2016/17 (R 155 million) was submitted to National Treasury through the Department of Social Development for consideration and approval. The outcome is still outstanding.

Default rate due to poverty level affecting debtors, making it difficult for them to repay as per agreements made with SASSA.


Table 8: Strategy to overcome areas of under-performance: Programme 1 Administration

Target Strategy

70% of reported fraud, theft and corruption cases investigated within 90 days of receipt.

Intervention teams will be deployed to regions with high numbers of cases to be investigated.

100% of fraud, theft and corruption cases investigated (backlog). Intervention teams will be deployed to regions with high numbers of cases to be investigated.

Biometric access to systems for staff and beneficiaries acquired, configured and piloted.

Project was located within the payment transition and that affected project time frame. Project is prioritised in the 2017/18 MTEF plan.

Back scanning solution implemented in 9 regional registries. Remaining regional registries are prioritised in the 2017/18 financial year.

On-going scanning piloted in 9 local offices. Ongoing scanning in the remaining local offices will be aligned with the ICT network infrastructure upgrade project targeted for completion in the next financial year.

Electronic queue management solution procured and piloted. Project was located within the payment transition and that affected project time frame. Project is prioritised in the 2017/18 MTEF plan.

Web-interface solution procured and implemented. Project was located within the payment transition and that affected project time frame. Project is prioritised in the 2017/18 MTEF plan.

100% of eligible suppliers paid within 30 days. Intensify engagement process to resolve payment exceptions by prompt follow ups to suppliers to submit any outstanding information and/or documents.

5% of social assistance debts recovered and/or written off. Finalise engagements with the Department of Social Development and National Treasury to approve proposed write-off of irrecoverable debtors amounting to R 155 million.

Changes to planned targets

None.


Table 9: Linking performance with budgets: Programme 1 Administration

2015/16 2016/17

Programme/activity/objective Budget Actual

Expenditure(Over)/Under Expenditure Budget Actual

Expenditure(Over)/Under Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Administration 2,463,766 2,656,852 (193,086) 2,437,495 2,582,891 (145,396)

Total 2,463,766 2,656,852 (193,086) 2,437,495 2,582,891 (145,396)

3.2. PROGRAMME 2: BENEFITS ADMINISTRATION AND SUPPORT

Purpose

The Benefits Administration and Support Programme provides a grant administration

service and ensures that operations within SASSA are integrated. This programme is

responsible for the core business of SASSA, and ensures the implementation of the full

value chain of grants administration. The functions relating to this programme cut across

all levels within the organisation, including the day-to-day interface with clients.

Description

This programme aims to ensure that social assistance programme is administered in the

most effective and efficient manner. The programme consists of the following processes:

§§ Application management: screening and attesting of each applicant, the

enrolment of the applicant on the system, the actual capturing and verification of

the application on the system and quality assurance;

§§ Payment Management: the processing of payments, actual payments to

beneficiaries and the reconciliation of payments. It should be noted that part of

this function is outsourced to a third party, namely Cash Paymaster Services (CPS).

The in-house unit’s responsibility is primarily the management of the Service

Level Agreement (SLA) between SASSA and the service provider. The function is

further responsible for designation of pay point infrastructure.

§§ Beneficiary Maintenance Management: the life certification as well as the

maintenance of the beneficiary data including grant reviews;

§§ Policy Implementation support includes development of systems and

procedures, training and management of business systems that support the

grant administration process; and

§§ Customer Care is responsible for promoting a customer-centric service offering

to clients. It further ensures the deployment of interventions to ensure access to

services by clients, especially in the most remote areas of the country as well as

ensuring the provision of information to all SASSA’s stakeholders. The department

also manages a call centre that creates a channel of communication between

SASSA and its beneficiaries.


Table 10: Strategic objectives, performance indicators planned targets and actual achievements: Programme 2: Benefits Administration and Support


Strategic objective: To improve the effectiveness and efficiency of the administration of the social assistance programme






2016/17


1. Number of new social grant applications processed.

1 767 639 new social grant applications were processed.

This represents 136% achievement against the annual target.


Location

No. of new social grant applications

processed

EC 227 223

FS 101 075

GP 288 352

KZN 389 288

LP 216 388

MP 147 523

NC 65 187

NW 133 901

WC 198 702

Total 1 767 639

1 400 000 Achieved.

2 062 453 new social grant applications were processed.



LocationNo. of new social

grant applications processed

EC 272 867

FS 129 753

GP 326 811

KZN 437 446

LP 252 399

MP 165 298

NC 82 814

NW 161 163

WC 233 902

Total 2 062 453

662 453 Accessibility of grant applications increased due to ICROPs and Mikondzo.

The high levels of poverty and unemployment also contributed to the increased demand for applications for social grants.









2016/17


2 Number of social grants in payment including Grant-in-Aid.

16 991 634 social assistance benefits were in payment as at end of financial year.

99.9% achievement against the annual target.


Location

No. of social grants in payment including

Grant-in-AidEC 2 742 505

FS 976 620

GP 2 426 699

KZN 3 918 463

LP 2 380 548

MP 1 416 666

NC 454 515

NW 1 193 089

WC 1 482 529

Total 16 991 634

17 507 849 Not achieved.

17 200 525 social assistance benefits were in payment as at end of financial year.



LocationNo. of social grants

in payment including Grant-in-Aid

EC 2 754 621

FS 989 959

GP 2 513 193

KZN 3 878 217

LP 2 426 212

MP 1 438 779

NC 465 908

NW 1 209 657

WC 1 523 979

Total 17 200 525

(307 324) Attrition, lapsing of temporary awarded grants, age qualification, applicants not meeting the qualifying criteria contributed to non- achievement of this target. However, it should be noted that a variance of 5% is accepted internationally when assessing achievements against projections. An achievement in excess of 98% is thus very good.









2016/17


3. Number of Social Relief of Distress (SRD) applications awarded.

479 238 SRD applications were awarded. This number includes 112 469 people who were assisted with SRD in response to disasters.

119,8% achievement against the target.

The regional breakdown of the 366 769 SRD applications processed:

Performance breakdown:

LocationNo. of SRD

applications awarded

EC 65 284FS 8 521GP 65 273KZN 18 897LP 61 210MP 30 971NC 32 821NW 52 248WC 31 544Total 366 769

400 000 SRD applications awarded.

Achieved.

461 750 Social relief of distress (SRD) applications awarded.

This represents 115% achievement against the target.


Location No. of SRD applications awarded


The SRD awards were in a form of:

§§ food parcels – 265 208

§§ school uniform – 128 304

§§ cash awards – 10 296

§§ voucher – 56 847

§§ other – 1 095

The total expenditure was R587 million.

61 750 SRD is driven by needs – the over-achievement is a reflection of the levels of poverty and unemployment in local areas.









2016/17


Additional 112 469 SRD awards in response to disaster per region.

LocationNo. of SRD

applications awarded

EC 1 808FS 628GP 357KZN 2 076LP 1 885MP 1 996NC -NW 477WC 103 242Total 112 469









2016/17


4. Percentage of children aged 0 – 1 in receipt of Child Support Grants (CSGs).

An overall increase of 2.30% in the numbers of CSG in payment was recorded, However, there was a decrease from 596 920 to 499 257 children aged 0 – 1 in payment at the end of March 2016.

This represents a decrease of 97 663 from the previous financial year.

55% of children aged 0 – 1 in receipt of CSGs.

Not achieved.

41% (494 723 of 1 206 306) of children aged 0-1 years in receipt of social grants.


Location

No. of children 0-1 per region

No. of children

0-1 in receipt

of social grants

%

EC 175 790 74 350 42

FS 56 178 26 400 47

GP 241 061 70 841 29

KZN 271 158 108 147 40

LP 149 945 88 306 59

MP 97 734 46 128 47

NC 23 888 12 855 54

NW 76 229 34 004 45

WC 114 323 33 692 29

Total 1 206 306 494 723 41

(14%) The net result of efforts is reported, which takes into account attrition, children moving into the next statistical age bracket and means test exclusions as contributing factors to non-achievement of set target.

Fragmented government systems between SASSA, Department of Health and Home Affairs also contribute to non-achievement.









2016/17


5. Percentage of new social grant applications processed within target days.

97% (1 717 011 of 1 767 639) of new grant applications processed within 15 working days.

83% of new grant application processed within 1 working day. Majority of social grants processed outside the 15 working days are Disability grants.

95% of new social grant applications processed within 10 days.

Not achieved.

90% (1 864 437 of 2 062 453) of new social grant applications were processed within 10 days.


Location

No. of new ap-

plications received

No. of new applications

processed within 10

days

%

EC 272 867 238 988 88

FS 129 753 109 228 84

GP 326 811 303 394 93

KZN 437 446 404 069 92

LP 252 399 224 713 89

MP 165 298 153 301 93

NC 82 814 76 775 93

NW 161 163 136 662 85

WC 233 902 217 307 86

Total 2 062 453 1 864 437 90

(5%) Non-achievement is contributed to manual applications taken at ICROPs and Mikondzo and applications taken off- line not processed on time.

This challenge will be addressed through the continued roll out of connectivity (both infrastructure and mobile), even at service points, which is an ongoing programme.









2016/17


6. Number of FCG reviews processed.

70 634 foster child grant reviews were processed.


LocationNo. of FCG

reviews processed

EC 6 668FS 4 982GP 9 237KZN 26 847LP 12 367MP 4 409NC 76NW 3 750WC 2 298TOTAL 70 634

163 397 Foster Child Grant reviews processed.

Achieved.

164 610 Foster Child Grant reviews Processed.


LocationNo. of FCG

reviews processed


1 213 The over achievement against the annual target is as a result of sharing information among regions, and implementing best practices such as case management and management involvement in the project.









2016/17


7. Percentage of social grant exceptions identified and resolved. (Grants on alternative ID number (7777), grants paid after date of death, large amounts generated for payment, means changed after voucher generation).

* 80% of identified social grant exceptions identified and resolved (Grants on alternative ID number (7777), grants paid after date of death, large amounts generated for payment, means changed after voucher generation).

Not achieved.

35% (35 241 of 100 526) of Social Grants exceptions were identified and resolved.


Location

No. of social

grant ex-ceptions

identified

No. of social

grant ex-ceptions resolved

%

EC 13 152 9 195 70FS 3 564 2 238 63GP 18 498 2 470 13KZN 27 644 102 -LP 5 808 5 241 90MP 4 143 3 265 79NC 3 144 1 671 53NW 4 537 3 545 78WC 20 036 7 514 38Total 100 526 35 241 35

(45%) Slow response by beneficiaries to call in letters contributed to under-achievement.

Exception management will remain a priority in the new financial year, with particular focus on the non-achieving regions.

The majority of the 7777 cases are refugees which will remain in payment on alternative numbers for the duration of the grant receipt, as they do not qualify for South African identity numbers.

This category of exceptions will be further refined to exclude the refugees.

The refugees will be monitored through the monthly payments.










2016/17


The process to resolve grants which were paid after the date of death is lengthy, as the actual person who withdrew the money has to be traced, before the debt can be raised and the recovery processes instituted.

8. Number of identified wards having access to social assistance through ICROP.

570 outreach programmes (ICROP) conducted.


LocationNo. of outreach

programmes (ICROP) conducted

EC 89FS 48GP 49KZN 124LP 39MP 55NC 44NW 77WC 45Total 570

520 identified wards having access to social assistance through ICROP.

Achieved.

631 identified wards having access to social assistance through ICROP.


LocationNo. of identified wards having access to social

assistance through ICROPEC 65 FS 87GP 71 KZN 114LP 67MP 54 NC 50NW 39 WC 84 Total 631

111 ICROP programme is targeted at wards identified as the poorest in the country. Additional wards, with extensive social needs may be identified through engagement with communities in the course of implementing this programme, and are then included in the schedule, where both time and resources permit.









2016/17


9. Number of Mikondzo service delivery interventions conducted.

78 Mikondzo interventions were conducted, of the 78, 34 were in a form of major events and 44 build-up community engagements.


36 Mikondzo service delivery interventions conducted.

Not Achieved.

31 Mikondzo service delivery interventions conducted.


LocationNo. of Mikondzo service delivery interventions

conductedEC 3FS 1GP 1KZN 16LP 1MP 3NC 1NW 1WC 4Total 31

(5) Mikondzo interventions were limited by resource availability.









2016/17


10. Number of public and beneficiary education awareness programmes conducted.

759 beneficiary education programmes were conducted focusing on:

§§ Fraud, theft and corruption awareness.

§§ Protection of SASSA cards.

§§ Regulation 26A mandates.

§§ Grants awareness focusing on SRD, GIA and CSG (0 - 1).

600 public and beneficiary education awareness programmes.

Achieved.

828 public and beneficiary education awareness programmes were conducted.

228 Increased awareness was a result of issues relating to Regulation 26A and unauthorised grant deductions.

SASSA’s 10th year celebrations also led to the increase in the number of planned outreach programmes.









2016/17


11. System for managing Regulation 26A mandates developed and implemented.

* System for managing Regulation 26A mandates developed and implemented.

Not achieved.

15% (1 035 out of 7 090) of Regulation 26A mandates processed manually.


LocationNo. of Regulation

26A mandates processed

EC -FS -

GP 314

KZN -LP -MP 131 NC -

NW 580

WC 10

Total 1 035

System for managing Regulation 26A mandates was not developed.

The Regulation 26A new mandates were captured manually by regions pending the development of the electronic system.

In order to address this in the new financial year, negotiations will be undertaken with service providers to manage these under the payroll deductions contract, with SASSA taking control.










2016/17


12. Number of Regulation 26A backlog mandates processed.

55 232 mandates with

regard to the management

of Regulation 26A (direct

deductions) obtained.

This represent 9.4%

achievement against the

annual target.

The Agency received 551

disputes against funeral policy

deductions which remained

under investigation at the end

of the financial year. Affected

beneficiaries were notified in

December 2015.

The Agency developed a

dispute resolution mechanism

to address the challenges of

unauthorised deductions.

155 681 Regulation 26A backlog mandates processed.

Not achieved.

93 296 Regulation 26A backlog mandates processed.

This represents 60% achievement.


LocationNo. of Regulation 26A

backlog mandates processed

EC 17 771

FS 3 157

GP 8 915

KZN 31 430

LP 12 849

MP 8 361

NC 3 752

NW 5 748

WC 1 313

Total 93 296

(62 385) For the new financial year, a new SASSA controlled management model is being developed and will be implemented, to line up with the phasing out of the current payment service provider’s contract.









2016/17


The Ministerial Task Team

provide monthly intervention

plans oncollected mandates to

improverecourse mechanism.

Regions were trained on

the business process and

processing of the mandates.









2016/17


13. Percentage of disputed deductions from social grant payments resolved.

* 60% disputed deductions from social grant payments resolved.

Not achieved.

36% (5 343 of 14 683) disputed deductions from social grant payments were resolved.


Location

No. of disputed

deductions from social

grant payments received

No. of disputed

deductions from social

grant payments resolved

%

HO 1 144 658 58EC 1 553 736 47FS 1 206 198 16GP 3 254 810 25KZN 2 750 753 27LP 1 417 511 36MP 918 567 62NC 832 426 51NW 195 57 29WC 1 414 627 44Total 14 683 5 343 36

(24%) Reliance on an external party makes it difficult to resolve all reported disputes within the set time frames.

Management of disputes is included in the transition plan, with SASSA taking increasing direct responsibility, and developing a payment system which does not allow for any deductions from social grants.










2016/17


14. Transitional payment insourcing plan developed (through work streams) and implemented focusing on card issuance, payment distribution, banking options and life status confirmation.

* Transitional payment insourcing plan developed (through work streams) and implemented focusing on card issuance, payment distribution, banking options and life status confirmation.

Not achieved.

Draft transitional payment insourcing plan was developed and consultation with stakeholders conducted.

Request for Information for procurement of the Banking Tender and Biometric User Access Management issued and responses received in February 2017.

Payment contract with current service provider extended by 12 months.

Transitional payment insourcing plan was not finalised hence no implementation.

SASSA could not develop a new insourced social assistance payment system due to the complexity of the task, lack of technical infrastructure requirements and insufficient financial resources.

15. Payment vendors (Merchants) suitability Assessments conducted.

* Payment vendors (Merchants) suitability assessments conducted.

Achieved.

Suitability assessments were conducted.

List of suitable vendors compiled.

None. None.










2016/17


16. Verified/authenticated biometric dataset operationalised.

Although 81 981 fingerprints for adults and children were not cleaned up, 72 fingerprints for children were re-captured.

A decision was taken to conduct a full clean-up of the records through a review process. System changes were effected to SOCPEN to accommodate review/re-enrollment of duplicates/matching fingerprints. A database of the duplicates/ matching fingerprints was provided to regions for implementation.

Matching fingerprints of both adults and children clean up: 31 008.

Not achieved.

Matching fingerprints of both adults and children cleaned up: 4 818.

(26 190) Challenges with tracing beneficiaries contributed to under-achievement.

This challenge will be addressed through the phasing out of the current contractor, when all existing beneficiaries will be expected to report to identified points to undertake a card swap, during this period fingerprints will then be confirmed on site.

17. Biometric enrolment of beneficiaries implemented within SASSA.

Biometric enrollment and identification system specification document was adopted by the Agency.

The procurement process has been initiated. The Agency’s operational preparations will commence in the new financial year.

New beneficiaries biometrically enrolled onto new SASSA system.

Not achieved. Biometric enrolment of beneficiaries did not happen.

Decision taken to locate biometrics project within the broader Transition plan which affected project time lines. Biometric System to be aligned and procured in line with the preferred solution option in 2017/18.









2016/17


* Data of current beneficiaries migrated to new SASSA enrolment system.

Not achieved.

Biometric data for existing beneficiaries is collected monthly from the current service provider for storage purposes. The data will be migrated into the SASSA biometric system once procurement process has been finalised.

The data of current beneficiaries was not migrated to the new SASSA enrolment system.

Data migration is dependent on the biometric system which is yet to be procured as part of internalised payment model. The biometric system to be aligned and procured in line with the preferred solution option in 2017/18.



Table 11: Strategy to overcome areas of under-performance: Programme 2 Benefits Administration and Support

Target Strategy

17 507 849 social grants in payment including Grant-in-Aid. Continuous review of projections jointly with National Treasury and DSD.

55% of children aged 0 – 1 in receipt of CSGs. In 2017/18, focus will be on measuring efforts rather than net result.

95% of new social grant applications processed within 10 days. This challenge will be addressed through the continued roll out of connectivity (infrastructure and mobile), even at service points, which is an ongoing programme

80% of identified social grant exceptions identified and resolved (Grants on alternative ID number (7777), grants paid after date of death, large amounts generated for payment, means changed after voucher generation).

Exception management will remain a priority in the new financial year, with particular focus on the non-achieving regions.

System for managing Regulation 26A mandates developed and implemented. In order to address this in the new financial year, negotiations will be undertaken with service providers to manage these under the payroll deductions contract, with SASSA taking control.

155 681 Regulation 26A backlog mandates processed. In order to address this in the new financial year, negotiations will be undertaken with service providers to manage these under the payroll deductions contract, with SASSA taking control.

60% disputed deductions from social grant payments resolved. Management of disputes is included in the transition plan, with SASSA taking control increasing direct responsibility, and developing a payment system which does not allow for any deductions from social grants.

Transitional payment insourcing plan developed (through work streams) and implemented focusing on card issuance, payment distribution, banking options and life status confirmation.

In the 2017/18 financial year, payment will continue as per extension for 12 months while a phase-in, phase-out plan is developed for payment beyond extension.

Matching fingerprints of both adults and children clean up: 31 008. This project will be carried into the new financial year. A full comparison of the biometric data base will have to be done. The phasing-in of a new payment card will be used to resolve the outstanding cases.

New beneficiaries biometrically enrolled onto new SASSA system. Biometric system to be aligned and procured in line with the preferred solution option in 2017/18.

Data of current beneficiaries migrated to new SASSA enrolment system. Data migration dependent on biometric system yet to be procured as part of internalised payment model.

Changes to planned targets

None.


Table 12: Linking performance with budgets: Programme 2 Benefits Administration and Support

2015/16 2016/17

Programme/activity/objective Budget Actual

Expenditure(Over)/Under Expenditure Budget Actual

Expenditure(Over)/Under Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Benefits Administration 4,179,204 4,247,277 (68,073) 4,471,436 4,643,633 (172,197)

Total 4,179,204 4,247,277 (68,073) 4,471,436 4,643,633 (172,197)

4. REVENUE COLLECTION

Table 13: Revenue Collection

2015/16 2016/17

Sources of revenue Estimate Actual

Amount Collected(Over) / Under

CollectionEstimate

Actual Amount Collected

(Over) / Under Collection

R’000 R’000 R’000 R’000 R’000 R’000

Revenue from

exchange transactions 3,987 23,785 (19,798) - 12,518 (12,518)

Finance income 14 311 (297) - 527 (527)

Government grants 6,642,970 6,642,962 8 6,908,931 6,908,932 (1)

Donations - - - - 361 (361)

Total 6,646,971 6,667,058 (20,087) 6,908,931 6,922,338 (13,407)

4.1. CAPITAL INVESTMENT

SASSA has, over the past two years, implemented projects that are aimed at improving the conditions of the facilities under which citizens are provided services. These are the

eradication of open paypoints projects which included the erection of steel structures and relocation to fixed structures such as churches and community halls. These structures

were erected in designated paypoints particularly in rural areas where there is no requisite infrastructure to serve the grant beneficiaries in humane conditions. The spending on the

structures is capitalised.



PART C:GOVERNANCE


1. INTRODUCTION

Corporate governance embodies processes and systems by which public entities are

directed, controlled and held to account. In addition to legislative requirements based on

a public entity’s enabling legislation, and the Companies Act (Act 71 of 2008), corporate

governance with regard to public entities is applied through the precepts of the Public

Finance Management Act (PFMA, Act 1 of 1999) and run in tandem with the principles

contained in the King Report on Corporate Governance. Parliament, the Executive and

the Accounting Authority as well as management of the public entity are responsible for

corporate governance.

2. PORTFOLIO COMMITTEES

During the period under review, SASSA Management appeared before several

Parliamentary Committees. These were the Portfolio Committee on Social Development,

the Select Committee on Social Services and Standing Committee on Public Accounts

(SCOPA). The appearances were for considerations of both the Annual Performance Plan

and Annual report of SASSA as well as progress on the institutionalisation of the payment

system.

Table 14: Portfolio and Select Committees Engagements

Committee Subject Date

Portfolio Committee on Social Development

Consideration of SASSA’s Annual Performance Plan 2016/17 - 2018/19.

12 April 2016


Consideration of SASSA’s 2015/16 Annual Report .

13 October 2016

Select Committee on Social Services

Consideration of SASSA’s 2015/16 Annual Report .

8 November 2016


SCOPA Review of SASSA’s 2015/16 Annual Report.

23 November 2016


Briefing by SASSA on the progress made on implementing the Constitutional Court ruling on the bidding of the new social assistance payment tender and preparation for the institutionalisation of the grant payment system.

30 November 2016


Briefing by SASSA on the progress made on implementing the Constitutional Court ruling on the bidding of the new social assistance payment tender and preparation for the institutionalisation of the grant payment system.

1 February 2017


Update by SASSA on the application to the Constitutional Court with regard to the payment tender.

22 February 2017

SCOPA Review of SASSA’s 2015/16 Irregular, Fruitless and Wasteful expenditure including Cash Paymaster Services (CPS) contract.

28 February 2017


Briefing by the South African Reserve Bank on their roles, position and readiness in the implementation of SASSA’s institutionalization of social grant payment system.

01 March 2017

SCOPA Briefing on Cash Paymaster Services (CPS) contract

07 March 2017




Briefing by SASSA on a plan to implement the Constitutional Court judgment

27 March 2017

3. EXECUTIVE AUTHORITY

During the period under review the following reports were submitted to the Executive

Authority on the dates detailed below. In addition, there have been on-going

engagements between the Executive Authority and SASSA’s top management.

Table 15: Reports submitted to the Executive Authority

Report Date

4th Quarter Performance Report 2015/16 09 May 2016

1st Quarter Performance Report 2016/17 15 August 2016

Annual Report 2015/16 30 September 2016

2nd Quarter Performance Report 2016/17 20 January 2017

3rd Quarter Performance Report 2016/17 02 February 2017

4. RISK MANAGEMENT

SASSA has an approved Risk Management Policy and Strategy that includes a Fraud

Prevention Plan. Strategic and operational risk assessments are conducted annually to

identify new and emerging risks for inclusion in the risk register. SASSA has appointed

a Risk Management Committee that advises management on the overall system of risk

management which includes guidance on a Risk Mitigation Strategy.

The report of the Risk Management Committee and the Risk Management Unit is

presented quarterly to the Audit Committee. The Audit Committee provides advice and

independently monitors the effectiveness of the systems of risk management.

Currently, SASSA has a Strategic Risk Register which include Risk Mitigation action Plans

that are monitored quarterly. There has been positive progress reported against the

identified strategic risks; such progress is presented to the SASSA Risk Management

Committee, SASSA EXCO and the Audit Committee. SASSA head office executives are

the responsible owners of the strategic risks.

5. INTERNAL CONTROL UNIT

The Internal Control Unit performed the following activities during the financial year

ended on 31 March 2017.

a) Secretariat of the Financial Misconduct Board of SASSA (FMB)

§§ In compliance with sections 83 to 86, of the Public Finance Management Act

(PFMA), 1999 (Act No.1 of 1999) (as amended), SASSA identifies and records all

the incidences of financial misconduct, investigates and take appropriate action

against responsible officials.

§§ The Internal Control Unit has served as the secretariat of the Financial Misconduct

Board (FMB) and assisted in the investigation and collation of the information

relating to the incidences of financial misconduct. For the year 2016/2017, four

meetings were held.

§§ Investigation reports were presented at the meetings of the FMB for deliberation

and to provide recommendation to the Chief Executive Officer (CEO) on the ap-

propriate action to be instituted against responsible officials.

b) Coordination of audit


§§ The Internal Control Unit was responsible for the coordination of the audit

conducted by the AGSA.

§§ The activities involved include making sure that the information requested for the

audit is submitted to the audit team within the stipulated timeframes, providing

advice to other units regarding matters related to the audit, preparing and

keeping accurate registers of audit findings and requests for information from the

audit team as well as making follow up on any outstanding matters in regard to

the audit.

§§ On finalisation of the audit, the unit developed the Audit Action Plan for

implementation by the affected branches and units within SASSA, ensuring

corrective measures are implemented to avoid recurring of the audit findings.

The progress report on the Audit Action Plan was updated on a monthly basis

and submitted to the AGSA, SASSA Audit Committee and EXCO.

§§ The unit also provided secretariat services to the Audit Steering Committee of

SASSA; serving as the scribe during meetings between the AGSA and SASSA,

keeping record of all audits related information such as copies of management

letters, audit engagement letters and other reports pertaining to the audit

information as may be required.

c) Monitor, analyse and follow up on the compliance with the policies of SASSA and relevant legislation (PFMA, Treasury Regulations etc)

§§ The Internal Control Unit is also required to assist with regard to the monitoring

of the compliance with policies and procedures of SASSA, as well as applicable

legislative prescripts.

§§ This monitoring is done through the development of an Internal Development

Plan. The outcome of the plan, as well as the lessons learned from investigation

of financial misconduct incidences, are continuously used to update the policies

and procedure manuals for implementation by officials.

6. INTERNAL AUDIT AND AUDIT COMMITTEES

Independent reporting to the Accounting Authority administratively and to the Audit

Committee functionally offers Internal Audit independence, which is imperative for the

success of any internal audit activity.

Key activities and objectives of the Internal Audit Function and summary of audit work done

§§ Internal Audit provides independent assurance and consulting services on

governance, risk management and control processes of the Agency to assist in

achieving its goals and objectives. The Internal Audit Department, though located

at Head Office, provides value adding internal audit services to the Agency’s

regional offices.

§§ Internal Audit assists the accounting authority in maintaining effective controls

by evaluating those controls to determine their effectiveness and efficiency, by

identifying the root causes of those control deficiencies and recommending

control enhancement or improvement. Internal audit also reviews the reliability

and integrity of financial and operating information as well as the review of

performance information to ascertain whether results are consistent with

established targets. For the year under review Internal Audit conducted a wide

range of operational, financial, compliance and information technology audit

assignments. In addition to planned audits, the unit also attended to certain

management requested (ad-hoc) audit assignments. Internal audit reviews

focused on high-risk areas relating to the following:

§− Grant application admin process;

§− Local Office Improvement;

§− Performance Information Management and Reporting;


§− Fleet Fuel Card Management;

§− Recruitment;

§− E- Leave;

§− Asset Clean-up;

§− Staff and Grant Debtors;

§− Annual Financial Statement’s; and

§− Information technology - general and application controls.

Internal Audit has requested for a deviation from compliance with Treasury Regulations

27.2.6 given that more time was required to prepare Internal Audit for the external

assessment.

The request in question sought to deviate from conducting an external assessment in

line with standard 1312 of the Standard for the Professional Practice of Internal Auditing

which states that external assessments must be conducted at least once every five years

by a qualified and independent reviewer.

The Office of the Accountant General has granted this deviation and Internal Audit will in

the forthcoming year work diligently to ensure compliance with this requirement.

Key activities and objectives of the Audit Committee

§§ During the reporting period, the Audit Committee continued to provide

independent advice to management and oversaw the functioning of the internal

audit activity. The Audit Committee has adopted appropriate formal terms of

reference as its Audit Committee Charter, regulated its affairs in compliance with

this Charter, and has discharged all its responsibilities as contained therein. The

Committee reviewed internal audit plans, activity report as well as management

action plans and processes to address areas of weaknesses identified by both

internal audit and the Auditor-General South Africa (AGSA). Monitoring of the

implementation of Audit Action Plans was conducted.

§§ The Committee took note of the activities of the Financial Misconduct Board,

which is a governance structure established to deal with matters of financial

misconduct as provided for in section 83 of the Public Finance Management Act

(PFMA) of 1999, to ensure that all unauthorised, irregular, fruitless and wasteful

expenditure is dealt with appropriately.

§§ The Audit Committee effectively executed its functions, which included the

following key activities:

§− Approved the Annual Internal Audit Plan for 2016/2017.

§− Considered the Audit Plan of the AGSA for 2016/2017 to avoid unnecessary

duplications of audit efforts between AGSA and Internal Audit.

§− Reviewed the management action plans to ensure that they address audit

exceptions and risks identified by the AGSA and Internal Audit.

§− Reviewed the 2015/2016 Annual Financial Statements.

§− Reviewed the Annual Performance Report for 2015/2016.


Table 16: Relevant information on the audit committee members

Name Qualifications Internal or external

If internal, position in the

public entityDate appointed Date Resigned No. of Meetings

attended

Mr R Morar (Chairperson) Chartered Accountant External Not applicable 1 May 2015 Not applicable 1 out of 5

Ms L Khumalo B Proc Bachelor of Law (LLB)

External Not applicable 4 January 2016 contract ended 4 January 2017

2 out of 2

Adv. MB Madumise B. ProcBachelor of Law (LLB)MBA, Graduate Diploma in International Trade Law

External Not applicable 1 January 2015 Not applicable 4 out of 5

Ms N Siwahla Madiba BCom (Acc) Post Graduate Diploma in Financial Management


Ms T Mazwai BCom GeneralDiploma in Human ResourcesMBA

External Not applicable 1 May 2015 Not applicable 5 out of 5

Mr S Simelane B Com B Com Hons MBA


7. COMPLIANCE WITH LAWS AND REGULATIONS

SASSA has developed and implemented various compliant check-lists and delegations of authority ensuring compliance with laws and regulations. These include but are not limited

to SCM, Finance, Human Capital and Facilities.


8. FRAUD AND CORRUPTION

SASSA has an approved Fraud Prevention Plan that is aligned to the Risk Management

Strategy. The implementation of the plan is done through the fraud awareness campaigns.

During the 2016//17 financial year, a total of 72 fraud, theft and corruption awareness

programmes were conducted. The campaigns targeted officials in the regional, district

and local offices. As at the end of the financial year, more than 2 900 officials were

reached. In addition, presentations are done on a continuous basis on the prevention,

detection, investigation and resolution processes in partnership with the Human Capital

Management Department during implementation of the induction programme for

newly- appointed personnel.

Alleged cases of fraud and corruption are reported through the National Anti-Corruption

Hotline (NACH) which allows for members of the public as well as SASSA employees to

anonymously report known or suspected fraudulent and corrupt activities.

During the 2016/17 financial year, a total of 405 fraud cases were received/reported

through the NACH. A total of 262 cases were finalised whilst 143 remained under

investigation at the end of the financial year.

In addition to the cases received and finalised in respect of the financial year 2016/17,

81% (933 out of 1 147) of the backlog cases were also investigated and finalised. There

were 12 fraud and corruption cases that were referred to law enforcement agencies

during the financial year 2016/17, involving 22 officials, and 1 beneficiary and 3 private

persons.

9. MINIMISING CONFLICT OF INTEREST

The South African Social Security Agency Act (2004) requires that a member of staff of

the Agency must, on appointment, submit to the Agency a written statement in which it

is declared whether or not that member has any direct or indirect interest, financially or

otherwise which may constitute a conflict of interest in respect of his or her functions as

an official of the Agency. The Agency compels all SCM officials to sign a Code of Conduct

annually. It must be indicated that all staff of the Agency do sign a Code of Conduct and

an Ethics Commitment Form which assists to control and manage any potential conflict

of interest.

It is standard procedure that all members of the Bid Evaluation Committee and BAC sign

declarations of interest in every sitting to establish and manage any conflict of interest.

All bidders are required to complete a returnable SBD 4 form which is a declaration of

interest for all suppliers submitting a bid or quotation. Any official doing business with

any government institution is required as per policy to apply for permission to do so. It

is only when such permission is granted that an official would be allowed to undertake

such business. All senior managers are required to complete financial disclosure forms

annually.

Any member of staff that is conflicted is required to declare and excuse him or herself

from any procurement process or information related to such acquisition process. Any

identified conflict of interest not declared constitutes financial misconduct and is dealt

with through Agency disciplinary procedures.

10. CODE OF CONDUCT

SASSA has an approved Code of Conduct which is in line with the general Public Service

Code of Conduct. The code regulates ethical conduct in line with SASSA values and

rules. Annually, SASSA employees are trained on the Code of Conduct and other relevant

developments. Attendance registers are kept as evidence for training conducted.

Breaching of the Code of Conduct is considered an offence and disciplinary processes

are instituted against offenders.


11. HEALTH SAFETY AND ENVIRONMENTAL ISSUES

SASSA has an approved Occupational Health Safety (OHS) policy and strategy that

guides implementation of health and safety matters. The strategy makes provision for

the establishment of National and Regional Occupational Health and Safety Committees

to ensure compliance with the OHS Act (1993). Based on this provision, SASSA has

appointed OHS Committees both at head office and regional offices. In addition, OHS

representatives have been appointed to identify hazards within SASSA offices. In areas

where hazards were identified, corrective measures were implemented jointly with

landlords to ensure health and safety standards were not compromised.

12. AUDIT COMMITTEE REPORT

The Audit Committee reports that it has complied with its responsibilities arising from

section 51(1)(a) of the PFMA and Treasury Regulation 3.1.13.

The Audit Committee herewith presents its report for the financial year ended 31

March 2017. The Audit Committee is independent and consists of six independent non-

executive members including the chairperson. One member’s term came to an end in

January 2017. The Audit Committee met five (5) times during the reporting period and

the attendance is shown in the table below:

Table 17: Attendance of Audit Committee Meetings

Name Qualifications Date appointed Date Resigned No. of Meetings attended

Mr R Morar Chartered Accountant 1 May 2015 Not applicable 1 out of 5

Ms L Khumalo B Proc Bachelor of Law (LLB)

4 January 2016 Contract ended 4 January 2017 2 out of 2

Adv. MB Madumise B. ProcBachelor of Law (LLB)MBA Graduate Diploma in International Trade Law

1 January 2015 Not applicable 4 out of 5

Ms N Siwahla Madiba BCom (Acc) Post Graduate Diploma in Financial Management


Ms T Mazwai Bcom GeneralDiploma in Human ResourcesMBA

1 May 2015 Not applicable 5 out of 5

Mr S Simelane B Com B Com Hons MBA



AUDIT COMMITTEE RESPONSIBILITY

The Audit Committee reports that it has adopted appropriate formal terms of reference

in its Audit Committee Charter and has discharged its duties as contained therein, in

line with the statutory requirements of section 51(1)(a)(ii) of the PFMA and Treasury

Regulation 27.1. The Audit Committee carried out its functions through Audit Committee

meetings and discussions with Executive Management, Internal Audit and the external

auditors.

INTERNAL AUDIT

The Committee has responsibility for overseeing, reviewing and providing assurance

on the adequacy of the internal control environment across SASSA’s operations and

approves the annual internal audit plan, which follows a risk-based audit approach.

Internal Audit is tasked with providing the Audit Committee with reasonable assurance

that internal controls are adequate and effective. The Committee approved the Annual

Coverage Plan and considered the Internal Audit Reports as presented on a quarterly

basis. The Committee notes improvement in respect of regional, district, local offices

by internal audit engagements and would like to see an audit of paypoints included in

the future coverage plan. Of concern was the inadequate capacity within the Internal

Audit Department, which impacted on the completion of the Audit Coverage Plan.

The Committee recommended a co-sourcing model to address the capacity challenge

within the Department. The Committee further notes the outstanding Quality Assurance

Review of the Internal Audit activity, as this means that the Agency’s Internal Audit is not

complying with the standards set by the Institute of Internal Auditors.

EFFECTIVENESS OF INTERNAL CONTROL

From the reports by Internal Audit and the AGSA, the Committee noted that certain

reported matters indicate deficiencies in the system of internal control. Management

has taken steps to prevent any further irregular, fruitless and wasteful expenditure

through the FMB, which presides over financial misconduct cases. The Committee is,

however, concerned about management’s commitment to consequence management,

as the FMB reports were lacking in this respect. Management noted the concern and has

committed that effective consequence management will be applied and progress in this

regard will be provided on a quarterly basis.

RISK MANAGEMENT

The Audit Committee is responsible for the oversight of the risk management activities.

The Chairperson of the Risk Management Committee is also a member of the Audit

Committee. The Risk Management Committee also reports to the Audit Committee. The

Risk Management Committee is responsible for the oversight of the Enterprise-wide

Risk Management. The Audit Committee provided oversight of the risk management

activities through the evaluation of the quarterly risk management reports. The Audit

Committee notes with concern the Constitutional judgement in the Black Sash matter

as it pointed to a lack of risk management within the organisation. The Committee has

alerted management of the emerging risks that the Agency’s transition towards taking

over the payment function will bring. Management, has committed to augmenting the

capacity of the risk management unit and itself to be better equipped to identify, assess

and manage the risks within their area of work.

THE QUALITY OF MANAGEMENT AND QUARTERLY REPORTS SUBMITTED IN TERMS OF THE PFMA

The Audit Committee reports that, during the year under review, it was presented

with quarterly management reports. The Committee, is however, concerned with the

planning and reporting, which is not adequate to enable it to provide effective oversight.

The Committee was in particular, concerned about the Agency’s plans to take over from


the grants payment service provider, CPS. The lack of reporting by the Agency in this

regard made it difficult for the Committee to oversee the takeover plans, and it was

thus not in a position to effectively advise. The Committee is also concerned about the

unresolved matter of over R1,1 billion irregular expenditure between the Agency and the

National Treasury.

The Audit Committee has engaged with management to remedy shortcomings relating

to performance information reports and progress is being made to improve the quality

of these reports. The Audit Committee will monitor progress made by management on

the quarterly performance information reports.

EVALUATION OF THE ANNUAL FINANCIAL STATEMENTS

The Audit Committee wishes to indicate that it performed a review on the financial

statements for the year ended 31 March 2017 focusing on:

§§ Significant financial reporting judgments and estimates contained in the annual

financial statements;

§§ Clarity and completeness of disclosure and whether disclosures made have been

set properly in context;

§§ Quality and acceptability of, and any changes in accounting policies and practices;

§§ Compliance with accounting standards and legal requirements;

§§ Significant adjustments and or unadjusted differences resulting from the audit;

§§ Reflection of unusual circumstances or events and management’s explanation for

the accounting treatment adopted;

§§ Reasons for major year-on-year fluctuations;

§§ Asset valuations and revaluations;

§§ Calculation and levels of general and specific provisions; and

§§ Write-offs, surpluses, reserves and transfers.

Audit Committee noted with concern the utilisation of surplus funds by the Agency in

light of the issues raised by the AGSA regarding the approval process.

Adv. MB MadumiseAudit Committee Deputy Chairperson31 July 2017


PART D:HUMAN RESOURCE MANAGEMENT


1. INTRODUCTION

SASSA has addressed the alignment of service delivery initiatives by embarking on

human resource planning to outline the capacity requirements based on the current

grants value chain staffing requirements. The aim is to improve the utilisation of staff and

organisational efficiency.

To ensure that there is capacity to meet service delivery requirements, 96% of permanent

funded posts were filled as at 31 March 2017.

SASSA had 8 943 funded positions in the begining of the financial year, a total of 8

544 posts were filled representing 96%. These appointments had a positive bearing in

addressing capacity challenges which has a direct impact in the attainment of SASSA

strategic objectives.

In addition, there were 805 contract workers comprising of EPWP (496), interns (60), other contracts (249). This brings the total number of employees to 9 349 at the end of

March 2017.

Towards improving organisational efficiency, SASSA successfully implemented the online

leave system for Head Office to ensure effective and efficient leave management. The

solution will be extended to the entire organisation during the 2017/2018 Financial Year.

During the year under review, SASSA has reviewed and implemented an improved

Performance Management and Development System (PMDS) which is aimed at

enhancing organisational performance and rewards good and excellent individual

performance. In order to keep up with the Skills Development requirements, SASSA

identified a number of training interventions for 2016/17 financial year and a total of

2075 employees were trained in various fields.

SASSA is committed to creating and maintaining a conducive working environment

through sound employee relations. During the period under review, SASSA finalised

45 grievances lodged by the officials within the Agency, obtained 12 CCMA awards in

favour of the Agency and 20 employees were dismissed for fraud and other categories

of misconduct. SASSA has further managed to ensure that Senior Management

and Organised Labour engage on issues pertinent to the employees’ conditions of

employment through SASSA National Bargaining Forum.

SASSA has an EE Plan and its implementation is monitored quarterly through the EE Forum

at regional and national level. Information sessions on disability disclosure were held

and 26 assessments were conducted to reasonably accommodate and retain employees

with disabilities. A holistic Employee Wellness Programme has been implemented in the

Agency which includes 24 hours/7 days a week counselling interventions, information,

advice and education on HIV/AIDS, weight management, substance abuse and lifestyle

choices.


2. HUMAN RESOURCE OVERSIGHT STATISTICS

Table 18: Personnel Cost by Programme

ProgrammeTotal Expenditure

for the entity in Rands

Personnel Expenditure

in Rands

Personnel exp. as a % of total exp. No. of employees

Average personnel cost per employee

in Rands

1. ADMINISTRATION

- Corporate Services 1 188 754,482 248,635,022 20.93 655 379,595

- Executive Management 255,246,467 120,107,175 47.06 215 558,638

- Finance 484,555,597 352,396,632 72.73 1 132 311,304

- Information & Communication Technology 558,322,287 67,445,134 12.08 119 566,766

- Internal Audit 23,697,662 16,046,059 67.71 33 486,244

- Strategy & Business Development 72,314,641 24,417,808 33.77 28 872,065

2. GRANTS ADMINISTRATION 4,643,633 449 2,066,650,978 44.51 8 107 254,922

TOTAL 7,226,524,584 2,895,698,808 40.07 10 289* 281,436

* Represents all employees who were paid during the year including contracts that expired prior to year-end.


Table 19: Personnel Cost by location

LocationTotal Expenditure for the

entity in Rands

Personnel Expenditure in Rands

Personnel exp. as a % of total exp. No. of employees

Average personnel cost per employee

in Rands

HEAD OFFICE 3,096,170,896 231,464,037 7.48 439 527,253

GAUTENG 448,812,170 305,788,000 68.13 1 121 272,781

WESTERN CAPE 406,203,163 260,087,732 64.03 1 000 260,088

KWAZULU-NATAL 815,222,001 515,414,358 63.22 2 135 241,412

MPUMULANGA 330,054,541 205,289,055 62.20 802 255,971

FREE STATE 300,911,597 199,510,622 66.30 677 294,698

LIMPOPO 440,202,252 310,783,878 70.60 1 043 297,971

EASTERN CAPE 684,066,492 457,244,556 66.84 1 621 282,076

NORTHERN CAPE 284,328,392 178,768,817 62.87 637 280,642

NORTH WEST 420,553,081 231,347,753 55.01 814 284,211

TOTAL 7,226,524,584 2,895,698,808 40.07 10 289* 281,436

Table 20: Personnel cost by Salary band

Salary band Personnel Expenditure in Rands Personnel exp. as a % of total exp. No. of employees Average personnel cost per

employee in Rands

TOP MANAGEMENT 18,505,332 0.64 14 1,321,809

SENIOR MANAGEMENT 206,756,753 7.14 215 961,659

PROFESSIONAL QUALIFIED 625,547,436 21.60 1 023 611,483

SKILLED 843,740,951 29.14 2 566 328,816

SEMI - SKILLED 1,175,873,741 40.61 5 668 259,689

UNSKILLED 25,274,595 0.64 803 31,475

TOTAL 2,895,698,808 100 10 289* 281,436

* Represents all employees who were paid during the year including contracts that expired prior to year-end.


Table 21: Performance Rewards by Salary band

Salary band Number of EmployeesPerformance Rewards in

RandsPersonnel Expenditure in

RandsPerformance rewards as a %

of Total Personnel Cost

TOP MANAGEMENT - - 18,505,332 -

SENIOR MANAGEMENT 6 350,445 206,756,753 0.16

PROFESSIONAL QUALIFIED 9 45,428 625,547,436 1.12

SKILLED 1 023 13,055,126 843,740,951 1.16

SEMI - SKILLED 186 7,193,445 1,175,873,741 1.43

UNSKILLED 570 11,980,476 25,274,595 0.17

TOTAL 1 794 32 624,921 2,895,698,808 1.14

Table 22: Training Costs by Programme

Branch/Region/DepartmentPersonnel

Expenditure in Rands

Training Expenditurein Rands

Training Expenditure as a % of Personnel

Cost.

No. of Employees

trained

Avg Training cost per employee

in Rands

OFFICE OF THE CEO 3 380 275.61 - - - -

FRAUD & COMPLIANCE 10 977 349.74 10 258.86 1 1 10 258.86

INTERGOVERNMENTAL & STAKEHOLDER RELATIONS 907 429.80 - - - -

ENTERPRISE PROGRAMME MANAGEMENT OFFICE - - - - -

SECURITY MANAGEMENT 3 830 202.27 - - - -

INTERNAL AUDIT & RISK MANAGEMENT 16 046 059.51 135 750.86 0.84 33 4 113.66

CORPORATE SERVICES 61 970 668.42 319 872.00 0.52 124 2 579.61

FINANCE 50 775 471.55 395, 249.00 0.78 59 6 699.13

INFORMATION & COMMUNICATIONS TECHNOLOGY 29 403 429.69 120,000.00 0.41 32 3 750.00


Branch/Region/DepartmentPersonnel

Expenditure in Rands

Training Expenditurein Rands

Training Expenditure as a % of Personnel

Cost.

No. of Employees

trained

Avg Training cost per employee

in Rands

GRANTS ADMINISTRATION 10 778 289.36 97 017.71 0.9 7 13 859.67

GRANT BENEFIT TRANSFERS 18,977,052.85 - - - -

STRATEGY & BUSINESS DEVELOPMENT 24,417,808.17 12,750.00 0.05 1 12,750.00

GAUTENG 305,788,000.05 1,336,952.97 0.44 354 3,776.70

WESTERN CAPE 260,087,731.58 227,978.00 0.88 34 6,705.23

KWAZULU-NATAL 515,414,358.40 228,000.00 0.04 51 4,470.58

MPUMULANGA 205,289,054.94 1,072,049.,04 0.52 137 7,825.17

FREE STATE 199,510,622.22 1,259,978.60 0.63 254 4,960.54

LIMPOPO 310,783,878.07 1,813,567.88 0.58 318 5,703.04

EASTERN CAPE 457,244,555.62 1,180,236.06 0.26 306 3,856.98

NORTHERN CAPE 178,768,817.14 225,354.18 0.13 213 1,058.00

NORTH WEST 231,347,753.03 546,536.00 0.24 151 3,619.44

TOTAL 2,895,698,808 8,981,551.16 0.31 2 075 4,328.46

Table 23: Employment and Vacancies

Branch/Region/Department 2015/2016 No. of Employees

2016/2017 Approved Posts

2016/2017 No. of Employees 2016/17 Vacancies % of Vacancies

OFFICE OF THE CEO - 2 2 - -

FRAUD & COMPLIANCE 15 40 14 26 65.0

CHIEF OPERATIONS MANAGEMENT 21 71 17 54 76.1

INTERNAL AUDIT & RISK MANAGEMENT 26 62 29 33 53.2


Branch/Region/Department 2015/2016 No. of Employees



CORPORATE SERVICES 115 237 121 116 48.9

FINANCE 86 184 89 95 51.6

INFORMATION & COMMUNICATIONS TECHNOLOGY (ICT) 41 110 41 69 62.7

GRANTS OPERATIONS 49 82 62 20 24.4

POLICY IMPLEMENTATION SUPPORT 18 19 8 11 57.9

STRATEGY & BUSINESS DEVELOPMENT 30 117 27 90 76.9

GAUTENG 1 071 2 086 1 057 1 029 49.3

WESTERN CAPE 914 1 397 871 526 37.7

KWAZULU-NATAL 2 045 3 464 1 885 1 579 45.6

MPUMULANGA 736 1 481 653 828 55.9

FREE STATE 648 1 883 645 1 238 65.7

LIMPOPO 1 006 1 832 981 851 46.5

EASTERN CAPE 1 562 3 403 1 509 1 894 55.7

NORTHERN CAPE 575 1 332 578 754 56.6

NORTH WEST 774 1 613 760 853 52.9

TOTAL 9 732 19 415 9 349** 10 066 51.8

** Represents employees (both permanent and contracts) in service as at 31 March 2017.


Table 24: Employment and Vacancies by salary band

Salary band 2015/2016 No. of Employees



TOP MANAGEMENT 13 18 12 6 33.3

SENIOR MANAGEMENT 200 306 199 107 35.0

PROFESSIONAL QUALIFIED 896 2 037 920 1 117 54.8

SKILLED 2 259 5 659 2 242 3 417 -

SEMI - SKILLED 5 612 10 822 5 430 5 392 49.8

UNSKILLED 752 573 546 27 4.7

TOTAL 9 732 19 415 9 349** 10 066 51.8

Table 25: Employment changes

Salary bandEmployment at beginning of

periodNew Appointments Terminations

Employment at end of the period

TOP MANAGEMENT 13 1 2 12

SENIOR MANAGEMENT 206 4 11 199

PROFESSIONAL QUALIFIED 931 32 43 920

SKILLED 2 338 42 138 2 242

SEMI - SKILLED 5 398 516 483 5 431

UNSKILLED 599 261 315 545

TOTAL 9 485 856 992 9 349**

** Represents employees (both permanent and contracts) in service as at 31 March 2017.


Table 26: Reason for staff leaving

Reason Number % of total no. of staff leaving

DEATH 32 3.2

RESIGNATION 242 24.4

DISMISSAL 20 2.0

RETIREMENT 53 5.3

ILL HEALTH 1 0.1

EXPIRY OF CONTRACT 621 62.6

OTHER - TRANSFER 23 2.3

TOTAL 992 100

Table 27: Labour Relations: Misconduct and disciplinary action

Nature of disciplinary Action Number

VERBAL WARNING 4

WRITTEN WARNING 24

FINAL WRITTEN WARNING 7

DISMISSAL 20

TOTAL 55


EQUITY TARGET AND EMPLOYMENT EQUITY STATUS

SASSA has, during the reporting period, experienced challenges with regards to attracting People with Disabilities and White people particularly at the semi-skilled post class where

they are mostly underrepresented. The Employment Equity target clause has been incorporated in the adverts to attract the target groups in line with the Agency’s EE Plan. Progress

has been made in terms of ensuring equitable representation of employees in top and senior management echelon. However, the Agency still need to recruit females in identified

occupational dispensations.

Table 28: Equity Target and Employment Equity Status

Levels

MALE

African Coloured Indian White

Current Target Current Target Current Target Current Target

TOP MANAGEMENT 7 5 - 1 - - - 2

SENIOR MANAGEMENT 86 98 10 7 3 5 5 18

PROFESSIONAL QUALIFIED 410 292 52 34 20 19 20 51

SKILLED 796 1 655 74 204 31 92 18 228

SEMI - SKILLED 1 809 2 668 195 409 19 85 15 333

UNSKILLED 249 441 14 99 - 18 - 62

TOTAL 3 357 5 159 345 754 73 219 58 694


Levels

FEMALE

African Coloured Indian White

Current Target Current Target Current Target Current Target

TOP MANAGEMENT 4 6 - 1 - - 1 1

SENIOR MANAGEMENT 77 108 6 9 6 9 6 16

PROFESSIONAL QUALIFIED 349 249 29 31 11 12 29 41

SKILLED 1 135 2 221 113 272 24 102 51 298

SEMI - SKILLED 3 047 4 064 263 455 26 96 56 435

UNSKILLED 266 606 17 135 - 15 - 71

TOTAL 4 878 7 254 428 903 67 234 143 862

Levels

Disabled Staff

Male Female

Current Target Current Target

TOP MANAGEMENT - - - -

SENIOR MANAGEMENT 1 2 1 3

PROFESSIONAL QUALIFIED 4 7 1 7

SKILLED 33 41 20 55

SEMI - SKILLED 35 61 53 88

UNSKILLED - 10 - 13

TOTAL 73 121 75 166



PART E:FINANCIAL INFORMATION


South African Social Security AgencyAnnual Financial Statements for the year ended 31 March 2017

Report of the Auditor-General

REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE SOUTH AFRICAN SOCIAL SECURITY AGENCY

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Qualified Opinion

1. I have audited the financial statements of the South African Social Security Agency set out on pages 94 to 146, which comprise the statement of financial position as at 31 March 2017, and the statement of financial performance, statement of changes in net assets, cash flow statement and statement of comparison of budget information with actual information for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies.

2. In my opinion, except for the possible effect of the matter described in the basis for qualified opinion section of my report, the financial statements present fairly, in all material respects, the financial position of the South African Social Security Agency as at 31 March 2017, and its financial performance and cash flows for the year then ended in accordance with the South African Standards of Generally Recognised Accounting Practice (GRAP) and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA).

Basis for qualified opinion

Irregular expenditure

3. Section 55(2)(b)(i) of the PFMA requires the entity to disclose in a note to the financial statements particulars of all irregular expenditure incurred during the financial year. The entity did not have an adequate system for identifying all irregular expenditure resulting from inadequate procurement and contract management and there were no satisfactory alternative procedures that I could perform to obtain reasonable assurance that all irregular expenditure had been properly recorded in note 31 to the financial statements. Consequently, I was unable to determine whether any adjustment was necessary to the balance of irregular expenditure stated at R 1 404 million in the financial statements.

4. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general’s responsibilities for the audit of the financial statements section of my report.

5. I am independent of the public entity in accordance with the International Ethics Standards Board for Accountants’ Code of ethics for professional accountants (IESBA code) together with the ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA code.

6. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.




Responsibilities of the accounting authority for the financial statements

7. The accounting authority is responsible for the preparation and fair presentation

of the financial statements in accordance with GRAP and the requirements of the PFMA and for such internal control as the accounting authority determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

8. In preparing the financial statements, the accounting authority is responsible for assessing the public entity’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the intention is to liquidate the public entity or to cease

operations, or there is no realistic alternative but to do so.

Auditor-general’s responsibilities for the audit of the financial statements

9. My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

10. A further description of my responsibilities for the audit of the financial statements is included in the annexure to the auditor’s report.

REPORT ON THE AUDIT OF THE ANNUAL PERFORMANCE REPORT

Introduction and scope

11. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and the general notice issued in terms thereof I have a responsibility to report material findings on the reported performance information against predetermined objectives for selected programme presented in the annual performance report. I performed procedures to identify findings but not to gather evidence to express assurance.

12. My procedures address the reported performance information, which must be based on the approved performance planning documents of the public entity. I have not evaluated the completeness and appropriateness of the performance indicators included in the planning documents. My procedures also did not extend to any disclosures or assertions relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information. Accordingly, my findings do not extend to these matters.

13. I evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework, as defined in the general notice, for the following selected programme presented in the annual performance report of the public entity for the year ended 31 March 2017:

Programme Pages in the annual performance report

Programme 2 – Benefits Administration and Support 44 – 61




14. I performed procedures to determine whether the reported performance information was properly presented and whether performance was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.

15. The material finding in respect of the reliability of the selected programme is as follows:

Programme 2 – Benefit Administration and Support

Percentage of disputed deductions from social grant payment resolved

16. The reported achievement for the target was misstated, as the evidence

provided indicated 33% of disputes resolved and not 36% as reported.

Other matters

17. I draw attention to the matters below.

Achievement of planned targets

18. Refer to the annual performance report on pages 44 to 61 for information on the achievement of planned targets for the year and explanations provided for the under-or- over-achievement of targets. This information should be considered in the context of the material findings expressed on the reliability of the reported performance information in paragraph 16 of this report.

Adjustment of material misstatements

19. I identified material misstatements in the annual performance report submitted for auditing. These material misstatements were on the reported performance information of Benefit administration and support. Management subsequently corrected only some of the misstatements. Those that were not corrected are included in the material finding reported.

REPORT ON THE AUDIT OF COMPLIANCE WITH LEGISLATION

Introduction and scope

20. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to report material findings on the compliance of the public entity with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance.

21. The material findings in respect of the compliance criteria for the applicable subject matters are as follows:

Expenditure management

22. Effective steps were not taken to prevent irregular expenditure as required by section 51(1)(b)(ii) of the PFMA. Most of the irregular expenditure resulted from non - compliance with prescripts regulating procurement and contract management. Irregular expenditure relating to the new payment model of SASSA (work streams) amounts to R 43,242,143.

23. Effective steps were not taken to prevent fruitless and wasteful expenditure amounting to R 6,549,107 as disclosed in note 30 to the financial statements as




required by section 51(1)(b)(ii) of the PFMA.

Procurement and contract management

24. Some goods and services with a transaction value over R 500,000 were procured without inviting competitive bids, contrary to Treasury Regulation 16A6.1.

25. Some contracts and quotations were awarded to bidders based on preference points that were not allocated and/or calculated in accordance with the requirements of the Preferential Procurement Policy Framework Act of South Africa, 2000 (Act No.5 of 2000) (PPPFA) and its regulations.

26. Some contracts and quotations were awarded to bidders that did not score the highest points in the evaluation process, as required by section 2(1)(f ) of PPPFA and the Preferential Procurement Regulations.

27. Some construction contracts were awarded to contractors that were not registered with the Construction Industry Development Board (CIDB) and/or did not qualify for the contract in accordance with section 18(1) of the CIDB Act of South Africa, 2000 (Act No.38 of 2000) and CIDB regulations 17 and 25(7A).

28. Bid documentation for the procurement of commodities designated for local content and production, did not stipulate the minimum threshold for local production and content as required by preferential procurement regulation 9(1).

29. Commodities designated for local content and production, were procured from suppliers who did not submit a declaration on local production and content as required by preferential procurement regulation 9(1).

30. Commodities designated for local content and production, were procured from suppliers who did not meet the prescribed minimum threshold for local production and content, as required by Preferential Procurement Regulation 9(5).

Consequence management

31. Disciplinary steps were not taken against some of the officials who had incurred and/or permitted fruitless and wasteful expenditure, as required by section 51(1)(e)(iii) of the PFMA.

OTHER INFORMATION

32. The public entity’s accounting authority is responsible for the other information. The other information does not include the financial statements, the auditor’s report thereon and the selected programme presented in the annual performance report that has been specifically reported on in the auditor’s report.

33. My opinion on the financial statements and findings on the reported performance information and compliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.

34. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected programme presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed on the other information obtained prior to the date of this auditor’s report, I conclude




that there is a material misstatement of this other information, I am required to

report that fact.

INTERNAL CONTROL DEFICIENCIES

35. I considered internal control relevant to my audit of the financial statements, reported performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance thereon. The matters reported below are limited to the significant internal control deficiencies that resulted in the findings on the annual performance report and the findings on compliance with legislation included in this report.

Leadership

36. The accounting authority did not exercise adequate review and oversight to ensure that policies and procedures were updated with new requirements for procurement and contract management. Standard operating procedures for performance reporting had also not yet been rolled out to ensure consistent application and review. In addition, a policy for consequence management had not yet been developed.

Financial and performance management

37. Proper record keeping, monitoring and review processes were not implemented in a timely manner to ensure compliance with procurement and contract management requirements to prevent and detect irregular expenditure.

38. Reviewing and monitoring processes relating to performance reporting were inadequate.

OTHER REPORTS

39. I draw attention to the following engagements conducted by various parties that had, or could have, an impact on the matters reported in the public entity’s financial statements, reported performance information, compliance with applicable legislation and other related matters. These reports did not form part of my opinion on the financial statements or my findings on the reported performance information or compliance with legislation.

40. The public entity actively pursues the prevention and detection of fraud and is currently in investigating such cases regarding social assistance grants.

41. The National Treasury investigated cases relating to the awarding of bids. For one investigation, the report was submitted to the minister for further action. The

second investigation is still with the National Treasury.

Pretoria31 July 2017




§§ conclude on the appropriateness of the accounting authority’s use of the going concern basis of accounting in the preparation of the financial statements. I also conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the South African Social Security Agency’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate, to modify the opinion on the financial statements. My conclusions are based on the information available to me at the date of the auditor’s report. However, future events or conditions may cause the public entity to cease to continue as a going concern.

§§ evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner

that achieves fair presentation.

Communication with those charged with governance

3. I communicate with the accounting authority regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

4. I also confirm to the accounting authority that I have complied with relevant ethical requirements regarding independence, and communicate all relationships and other matters that may reasonably be thought to have a

bearing on my independence and here applicable, related safeguards.

ANNEXURE – AUDITOR-GENERAL’S RESPONSIBILITY FOR THE AUDIT

1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional scepticism throughout my audit of the financial statements, and the procedures performed on reported performance information for selected programmes and on the public entity’s compliance with respect to the selected subject matters.

Financial statements

2. In addition to my responsibility for the audit of the financial statements as described in the auditor’s report, I also:

§§ identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

§§ obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the public entity’s internal control.

§§ evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the accounting authority.



Index

The reports and statements set out below comprise the annual financial statements presented to the executive authority and parliament:

INDEX .................................................................................................................................................................................................................... PAGE

Statement of Financial Position ...............................................................................................................................................................................................................................................................................................95

Statement of Financial Performance ....................................................................................................................................................................................................................................................................................96

Statement of Changes in Net Assets ................................................................................................................................................................................................................................................................................... 97

Cash Flow Statement ......................................................................................................................................................................................................................................................................................................................98

Accounting Policies .................................................................................................................................................................................................................................................................................................................. 99 - 113

Notes to the Audited Annual Financial Statements ................................................................................................................................................................................................................................................. 114

The audited annual financial statements set out on page 95 to 146 which have been prepared on the going concern basis, were approved by the Accounting Authority on 31 July

2017 and were signed by:

Ms P S BenguChief Executive Officer (Acting) and Accounting Authority31 July 2017



Figures in Rands Note(s) 2017 2016

Statement of Financial Position as at 31 March 2017

Assets

Current AssetsInventories 3 15 500 095 16 956 005Receivables from exchange transactions 4 10 511 424 9 886 594Prepayments 5 17 095 299 14 548 250Cash and cash equivalents 6 777 382 156 1 227 259 084

820 488 974 1 268 649 933Non-Current AssetsProperty, plant and equipment 7 829 384 540 776 752 754Intangible assets 8 28 873 343 40 087 040

858 257 883 816 839 794Total Assets 1 678 746 857 2 085 489 727

Liabilities

Current LiabilitiesFinance lease obligation 9 - 198 445Operating lease liability 10 14 753 976 25 813 791Payables from exchange transactions 11 391 879 395 494 336 164Provisions 12 290 468 618 280 841 624

697 101 989 801 190 024Total Liabilities 697 101 989 801 190 024Net Assets 981 644 868 1 284 299 703Accumulated surplus 981 644 850 1 284 299 703




Statement of Financial Performance

RevenueRevenue from exchange transactions 13 12 518 162 23 784 714Donations received 37 361 078 -Finance income 16 527 263 310 777Revenue from non-exchange transactions 14 6 908 932 000 6 642 962 000

Total revenue 6 922 338 503 6 667 057 491

ExpenditurePersonnel costs 17 2 895 698 815 2 643 371 666Depreciation and amortisation 7&8 113 964 135 114 964 496Finance costs 18 70 013 300 289Social assistance service fees 20 2 062 877 697 2 025 558 821Debt Impairment 4 204 260 164 721Sponsorships, Gifts and Donations - 2 750Repairs and maintenance 21 407 623 141 277 112Administrative expenses 19 2 121 439 944 1 760 838 297

Total expenditure 7 215 662 487 6 686 478 152Operating deficit 15 (293 323 984) (19 420 661)Loss on disposal of assets (9 330 871) (17 314 250)Deficit for the year (302 654 855) (36 734 911)



Statement of Changes in Net Assets

Accumulated surplus/ (Deficit)

Total net assets

Balance at 01 April 2015 1 321 034 614 1 321 034 614Changes in net assetsSurplus for the year (36 734 911) (36 734 911)Total changes (36 734 911) (36 734 911)

Opening balance as previously reported 1 284 299 705 1 284 299 705Balance at 01 April 2016Changes in net assets 1 284 299 705 1 284 299 705(Deficit)/Surplus for the year (302 654 855) (302 654 855)Total changes (302 654 855) (302 654 855)

Balance at 31 March 2017 981 644 850 981 644 850




Cash Flow Statement

Cash flows from operating activities

ReceiptsCash receipts 6 920 982 150 6 663 185 623

PaymentsCash paid to suppliers and employees (7 206 404 812) (6 430 880 752)

Net cash flows from operating activities 23 (285 422 662) 232 304 871

Cash flows from investing activities

Purchase of property, plant and equipment 7 (166 240 490) (171 759 693)Purchase of intangible assets 8 - (87 089)Proceeds from sale of assets 1 527 419 3 377 117Interest Income 527 263 310 777Net cash flows from investing activities (164 185 808) (168 158 888)

Cash flows from financing activities

Finance lease payments (198 445) (327 069)Finance costs 18 (70 013) (300 289)

Net cash flows from financing activities (268 458) (627 358)

Net (decrease)/increase in cash and cash equivalents (449 876 928) 63 518 625Cash and cash equivalents at the beginning of the year 1 227 259 084 1 163 740 459Cash and cash equivalents at the end of the year 6 777 382 156 1 227 259 084



Accounting Policies

1. PRESENTATION OF ANNUAL FINANCIAL STATEMENTS

The annual financial statements have been prepared in accordance with the Standards

of Generally Recognised Accounting Practice (GRAP) including any interpretations,

guidelines and directives issued by the Accounting Standards Board in accordance with

Section 89(1) of the Public Finance Management Act (Act 1 of 1999).

These annual financial statements have been prepared on an accrual basis of accounting

and are in accordance with historical cost convention as the basis of measurement,

unless specified otherwise. They are presented in South African Rand and rounded to

the nearest rand.

A summary of the significant accounting policies, which have been consistently applied

in the preparation of these annual financial statements, are disclosed.

These accounting policies are consistent with the previous period.

Comparative information

When the presentation or classification of items in the annual financial statements is

amended, prior period comparative amounts are restated. Where accounting errors

have been identified in the current year, the correction is made retrospectively as far

as is practicable, and the prior year comparatives are restated accordingly. Where

there has been a change in accounting policy in the current year, the adjustment is

made retrospectively as far as is practicable, and the prior year comparatives are restated

accordingly.

1.1 SIGNIFICANT JUDGEMENTS AND SOURCES OF ESTIMATION UNCERTAINTY

In preparing the annual financial statements, management is required to make

estimates and assumptions that affect the amounts represented in the annual financial

statements and related disclosures. Use of available information and the application of

judgement is inherent in the formation of estimates. Actual results in the future could

differ from these estimates which may be material to the annual financial statements.

Significant judgements include:

Receivables

The entity assesses its trade receivables for impairment at the end of each reporting

period. In determining whether an impairment loss should be recorded in surplus or

deficit, the agency’s management makes judgements as to whether there is observable

data indicating a measurable decrease in the estimated future cash flows from a

financial asset.

The impairment for trade receivables is calculated on a portfolio basis, based on historical

loss ratios, adjusted for national and industry-specific economic conditions and other

indicators present at the reporting date that correlate with defaults on the portfolio.

These Interim loss ratios are applied to loan balances in the portfolio and scaled to the

estimated loss emergence period.

On debtors an impairment loss is recognised in surplus and deficit when there is

objective evidence that it is impaired. The impairment is measured as the difference

between the debtors carrying amount and the present value of estimated future cash

flows discounted at the effective interest rate, computed at initial recognition.



Accounting Policies

Provisions

Provisions are raised and management determined estimates are based on the

information available. Additional disclosure of these estimates of provisions are included

in note 12. Provisions are measured at management’s best estimate of the expenditure

required to settle the obligation at the reporting date, and are discounted to present

value where the effect is material.

Useful lives and residual values

The agency re-assesses the useful lives and residual values of property, plant and

equipment on an annual basis. In reassessing the useful lives and residual values of

property, plant and equipment management considers the condition and use of the

individual assets, to determine the remaining period over which the asset can and will

be used.

1.2 PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are tangible non-current assets (including infrastructure

assets) that are held for use in the production or supply of goods or services, rental to

others, or for administrative purposes, and are expected to be used during more than

one period.

The cost of an item of property, plant and equipment is recognised as an asset when:

§§ it is probable that future economic benefits or service potential associated with

the item will flow to the entity; and

§§ the cost of the item can be measured reliably.

Property, plant and equipment is initially measured at cost.

The cost of an item of property, plant and equipment is the purchase price and other

costs attributable to bring the asset to the location and condition necessary for it to be

capable of operating in the manner intended by management. Trade discounts and

rebates are deducted in arriving at the cost.

Where an asset is acquired through a non-exchange transaction, its cost is its fair value

as at date of acquisition.

Where an item of property, plant and equipment is acquired in exchange for a non-

monetary asset or monetary assets, or a combination of monetary and non-monetary

assets, the asset acquired is initially measured at fair value (the cost). If the acquired

item’s fair value was not determinable, it’s deemed cost is the carrying amount of the

asset(s) given up.

When significant components of an item of property, plant and equipment have

different useful lives, they are accounted for as separate items (major components) of

property, plant and equipment.

Costs include costs incurred initially to acquire or construct an item of property, plant

and equipment and costs incurred subsequently to add to, replace part of, or service it.

If a replacement cost is recognised in the carrying amount of an item of property, plant

and equipment, the carrying amount of the replaced part is derecognised.

The initial estimate of the costs of dismantling and removing the item and restoring

the site on which it is located is also included in the cost of property, plant and

equipment, where the entity is obligated to incur such expenditure, and where the

obligation arises as a result of acquiring the asset or using it for purposes other than the

production of inventories.



Accounting Policies

1.2 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

Recognition of costs in the carrying amount of an item of property, plant and equipment

ceases when the item is in the location and condition necessary for it to be capable of

operating in the manner intended by management.

Items such as spare parts, standby equipment and servicing equipment are recognised

when they meet the definition of property, plant and equipment.

Major inspection costs which are a condition of continuing use of an item of property,

plant and equipment and which meet the recognition criteria above are included as a

replacement in the cost of the item of property, plant and equipment. Any remaining

inspection costs from the previous inspection are derecognised.

Property, plant and equipment is carried at cost less accumulated depreciation and any

impairment losses.


impairment losses except for assets which are carried at revalued amount being the

fair value at the date of revaluation less any subsequent accumulated depreciation and

subsequent accumulated impairment losses.

Property, plant and equipment is carried at revalued amount, being the fair value at

the date of revaluation less any subsequent accumulated depreciation and subsequent

accumulated impairment losses.

Revaluations are made with sufficient regularity such that the carrying amount does not

differ materially from that which would be determined using fair value at the end of the

reporting period.

When an item of property, plant and equipment is revalued, any accumulated

depreciation at the date of the revaluation is restated proportionately with the change

in the gross carrying amount of the asset so that the carrying amount of the asset after

revaluation equals its revalued amount.

When an item of property, plant and equipment is revalued, any accumulated

depreciation at the date of the revaluation is eliminated against the gross carrying

amount of the asset and the net amount restated to the revalued amount of the asset.

Any increase in an asset’s carrying amount, as a result of a revaluation, is credited

directly to a revaluation surplus. The increase is recognised in surplus or deficit to the

extent that it reverses a revaluation decrease of the same asset previously recognised in

surplus or deficit.

Any decrease in an asset’s carrying amount, as a result of a revaluation, is recognised in

surplus or deficit in the current period. The decrease is debited directly to a revaluation

surplus to the extent of any credit balance existing in the revaluation surplus in respect

of that asset.

The revaluation surplus in equity related to a specific item of property, plant and

equipment is transferred directly to retained earnings when the asset is derecognised.

The revaluation surplus in equity related to a specific item of property, plant and

equipment is transferred directly to retained earnings as the asset is used. The amount

transferred is equal to the difference between depreciation based on the revalued

carrying amount and depreciation based on the original cost of the asset.

Property, plant and equipment are depreciated on the straight line basis over their

expected useful lives to their estimated residual value.



Accounting Policies



impairment losses.

Property, plant and equipment is carried at revalued amount, being the fair value at the

date of revaluation less any subsequent accumulated depreciation and subsequent

accumulated impairment losses. Revaluations are made with sufficient regularity

such that the carrying amount does not differ materially from that which would be

determined using fair value at the end of the reporting period.

Any increase in an asset’s carrying amount, as a result of a revaluation, is credited

directly to a revaluation surplus. The increase is recognised in surplus or deficit to the

extent that it reverses a revaluation decrease of the same asset previously recognised in

surplus or deficit.

Any decrease in an asset’s carrying amount, as a result of a revaluation, is recognised in

surplus or deficit in the current period. The decrease is debited in revaluation surplus

to the extent of any credit balance existing in the revaluation surplus in respect of that

asset.

The useful lives of items of property, plant and equipment have been assessed as follows:

Item Depreciation method Average useful life

Land Straight line Indefinite

Buildings Straight line 20 - 50 years

Finance lease assets Straight line lesser of the useful life or

the lease agreement term

Machinery and equipment Straight line 2 - 15 years

Furniture and fixtures Straight line 5 - 15 years

Motor vehicles Straight line 4 - 10 years

Office equipment Straight line 5 - 15 years

IT equipment Straight line 3 - 10 years

Leasehold improvements Straight line lesser of the useful life or

the lease agreement term

Communication equipment Straight line 2 - 15 years

The depreciable amount of an asset is allocated on a systematic basis over its useful life.



Accounting Policies


Each part of an item of property, plant and equipment with a cost that is significant in

relation to the total cost of the item is depreciated separately.

The depreciation method used reflects the pattern in which the asset’s future

economic benefits or service potential are expected to be consumed by the entity. The

depreciation method applied to an asset is reviewed at least at each reporting date

and, if there has been a significant change in the expected pattern of consumption of

the future economic benefits or service potential embodied in the asset, the method is

changed to reflect the changed pattern. Such a change is accounted for as a change in

an accounting estimate.

The entity assesses at each reporting date whether there is any indication that the

entity expectations about the residual value and the useful life of an asset have changed

since the preceding reporting date. If any such indication exists, the entity revises the

expected useful life and/or residual value accordingly. The change is accounted for as a

change in an accounting estimate.

The depreciation charge for each period is recognised in surplus or deficit unless

it is included in the carrying amount of another asset.

Items of property, plant and equipment are derecognised when the asset is disposed

of or when there are no further economic benefits or service potential expected from

the use of the asset.

The gain or loss arising from the derecognition of an item of property, plant and

equipment is included in surplus or deficit when the item is derecognised. The gain

or loss arising from the derecognition of an item of property, plant and equipment

is determined as the difference between the net disposal proceeds, if any, and the

carrying amount of the item.

Assets which the entity holds for rentals to others and subsequently routinely sell as part

of the ordinary course of activities, are transferred to inventories when the rentals end

and the assets are available-for-sale. Proceeds from sales of these assets are recognised

as revenue. All cash flows on these assets are included in cash flows from operating

activities in the cash flow statement.

The entity separately discloses expenditure to repair and maintain property, plant and

equipment in the notes to the financial statements (see note ).

The entity discloses relevant information relating to assets under construction or

development, in the notes to the financial statements (see note ).

1.3 INTANGIBLE ASSETS

An asset is identifiable if it either:

§§ is separable, i.e. is capable of being separated or divided from an entity and sold,

transferred, licensed, rented or exchanged, either individually or together with a

related contract, identifiable assets or liability, regardless of whether the entity

intends to do so; or

§§ arises from binding arrangements (including rights from contracts), regardless

of whether those rights are transferable or separable from the entity or from

other rights and obligations.



Accounting Policies

1.3 INTANGIBLE ASSETS (CONTINUED)

A binding arrangement describes an arrangement that confers similar rights and

obligations on the parties to it as if it were in the form of a contract.

An intangible asset is recognised when:

§§ it is probable that the expected future economic benefits or service potential

that are attributable to the asset will flow to the entity; and

§§ the cost or fair value of the asset can be measured reliably.

The entity assesses the probability of expected future economic benefits or service

potential using reasonable and supportable assumptions that represent management’s

best estimate of the set of economic conditions that will exist over the useful life of the

asset.

Where an intangible asset is acquired through a non-exchange transaction, its initial

cost at the date of acquisition is measured at its fair value as at that date.

Expenditure on research (or on the research phase of an internal project) is recognised

as an expense when it is incurred. An intangible asset arising from development (or

from the development phase of an internal project) is recognised when:

§§ it is technically feasible to complete the asset so that it will be available for use

or sale.

§§ there is an intention to complete and use or sell it.

§§ there is an ability to use or sell it.

§§ it will generate probable future economic benefits or service potential.

§§ there are available technical, financial and other resources to complete the

development and to use or sell the asset.

§§ the expenditure attributable to the asset during its development can be measured

reliably.

Intangible assets are carried at cost less any accumulated amortisation and any

impairment losses.

An intangible asset is regarded as having an indefinite useful life when, based on all

relevant factors, there is no foreseeable limit to the period over which the asset is

expected to generate net cash inflows or service potential. Amortisation is not

provided for these intangible assets, but they are tested for impairment Interimly and

whenever there is an indication that the asset may be impaired. For all other intangible

assets amortisation is provided on a straight line basis over their useful life.

The amortisation period and the amortisation method for intangible assets are reviewed

at each reporting date.

Reassessing the useful life of an intangible asset with a finite useful life after it was

classified as indefinite is an indicator that the asset may be impaired. As a result the

asset is tested for impairment and the remaining carrying amount is amortised over its

useful life.

Internally generated brands, mastheads, publishing titles, customer lists and items

similar in substance are not recognised as intangible assets.

Internally generated goodwill is not recognised as an intangible asset.



Accounting Policies

Amortisation is provided to write down the intangible assets, on a straight line basis, to

their residual values as follows:

Item Useful life

Computer software, internally generated 3-10 years

Computer software, other 3-10 years

The entity discloses relevant information relating to assets under construction or

development, in the notes to the financial statements (see note ).

1.4 FINANCIAL INSTRUMENTS

Initial recognition and measurement

Financial instruments are recognised initially when the entity becomes a party to the

contractual provisions of the instruments. The entity classifies financial instruments,

or their component parts, on initial recognition as a financial asset, a financial

liability or an equity instrument in accordance with the substance of the contractual

arrangement.

Financial instruments are measured initially at fair value.

For financial instruments which are not at fair value through surplus or deficit,

transaction costs are included in the initial measurement of the instrument.

Inter-departmental claims payable or receivable represent amounts owing in

respect of employee transfers between government departments.

Receivables from exchange transactions

Receivables are classified as receivables and subsequently measured at amortised cost

using the effective interest method.

Payables from exchange transactions

Payables are subsequently measured at amortised cost, using the effective interest

method.

Cash and cash equivalents - classification and subsequent measurement

Cash and cash equivalents comprise cash on hand and demand deposits after

payments processed but not cleared by the bank, and other short-term highly liquid

investments that are readily convertible to a known amount of cash and are subject to

an insignificant risk of changes in value. These are initially and subsequently recorded at

fair value and are classified as receivables.

Bank overdraft and borrowings - classification and subsequent measurement

Bank overdrafts and borrowings are subsequently measured at amortised cost, using

the effective interest method. Any difference between the proceeds (net of transaction

costs) and the settlement or redemption of borrowings is recognised over the term of

the borrowings in accordance with the entity’s accounting policy for borrowing costs.



Accounting Policies

1.5 LEASES

A lease is classified as a finance lease if it transfers substantially all the risks and

rewards incidental to ownership. A lease is classified as an operating lease if it does

not transfer substantially all the risks and rewards incidental to ownership.

Finance leases - lessee

Finance leases are recognised as assets and liabilities in the statement of financial

position at amounts equal to the fair value of the leased property or, if lower, the

present value of the minimum lease payments. The corresponding liability to the lessor

is included in the statement of financial position as a finance lease obligation.

The discount rate used in calculating the present value of the minimum lease payments

is the interest rate implicit in the lease. Minimum lease payments are apportioned

between the finance charge and reduction of the outstanding liability. The finance

charge is allocated to each period during the lease term so as to produce a constant

periodic rate on the remaining balance of the liability.

Any contingent rent is expensed in the period in which they are incurred.

Operating leases - lessee

Operating lease payments are recognised as an expense on a straight-line basis over

the lease term. The difference between the amounts recognised as an expense and

the contractual payments are recognised as an operating lease asset or liability.

1.6 INVENTORIES

Inventories are initially measured at cost except where inventories are acquired

through a non-exchange transaction, then their costs are their fair value as at the date

of acquisition.

Subsequently inventories are measured at the lower of cost and net realisable value.

Inventories shall be measured at the lower of cost and current replacement cost where

they are held for;

§§ distribution through a non-exchange transaction; or

§§ consumption in the production process of goods to be distributed at no charge

or for a nominal charge.

Net realisable value is the estimated selling price in the ordinary course of operations

less the estimated costs of completion and the estimated costs necessary to make the

sale, exchange or distribution.

Current replacement cost is the cost the entity incurs to acquire the asset on the

reporting date.

The cost of inventories comprises of all costs of purchase, costs of conversion

and other costs incurred in bringing the inventories to their present location and

condition.

The cost of inventories of items that are not ordinarily interchangeable and goods or

services produced and segregated for specific projects shall be assigned using specific

identification of the individual costs.



Accounting Policies

The cost of inventories is assigned using the weighted average cost formula. The same

cost formula is used for all inventories having a similar nature and use to the entity.

1.7 EMPLOYEE BENEFITS

Short-term employee benefits

The cost of short-term employee benefits, (those payable within 12 months after the

service is rendered, such as paid vacation leave and sick leave, bonuses, and non-

monetary benefits such as medical care), are recognised in the period in which the

service is rendered and are not discounted.

The expected cost of compensated absences is recognised as an expense as the

employees render services that increase their entitlement or, in the case of non-

accumulating absences, when the absence occurs.

The expected cost of bonus payments is recognised as an expense when there is a

legal or constructive obligation to make such payments as a result of past performance.

Defined contribution plans

Payments to defined contribution retirement benefit plans are charged as an expense

as they fall due.

Payments made to industry-managed (or state plans) retirement benefit schemes

are dealt with as defined contribution plans where the entity’s obligation under the

schemes is equivalent to those arising in a defined contribution retirement benefit plan.

1.8 PROVISIONS AND CONTINGENCIES

Provisions are recognised when:

§§ the entity has a present obligation (legal or constructive) as a result of a past

event;

§§ it is probable that an outflow of resources embodying economic benefits or

service potential will be required to settle the obligation; and

§§ a reliable estimate can be made of the amount of the obligation.

The amount of a provision is the best estimate of the expenditure expected to be

required to settle the present obligation at the reporting date.

Where the effect of time value of money is material, the amount of a provision is the

present value of the expenditure expected to be required to settle the obligation.

The discount rate is a pre-tax rate that reflects current market assessments of the time

value of money and the risks specific to the liability.

Where some or all of the expenditures required to settle a provision is expected to

be reimbursed by another party, the reimbursement is recognised when, and only

when, it is virtually certain that reimbursement will be received if the entity settles the

obligation. The reimbursement is treated as a separate asset. The amount recognised for

the reimbursement does not exceed the amount of the provision.

Provisions are reviewed at each reporting date and adjusted to reflect the current best

estimate. Provisions are reversed if it is no longer probable that an outflow of resources

embodying economic benefits or service potential will be required, to settle the

obligation.



Accounting Policies

1.8 PROVISIONS AND CONTINGENCIES (CONTINUED)

Where discounting is used, the carrying amount of a provision increases in each

period to reflect the passage of time. This increase is recognised as an interest expense.

A provision is used only for expenditures for which the provision was originally recognised.

Provisions shall not be recognised for deficits from future operating activities.

If the agency has a contract that is onerous, the present obligation (net of recoveries)

under the contract is recognised and measured as a provision.

A constructive obligation to restructure arises only when an agency:

§§ has a detailed formal plan for the restructuring, identifying at least:

§− the activity/operating unit or part of a activity/operating unit concerned;

§− the principal locations affected;

§− the location, function, and approximate number of employees who will be

compensated for services being terminated;

§− the expenditures that will be undertaken; and

§− when the plan will be implemented; and

§§ has raised a valid expectation in those affected that it will carry out the

restructuring by starting to implement that plan or announcing its main features

to those affected by it.

A restructuring provision includes only the direct expenditures arising from the

restructuring, which are those that are both:

§§ necessarily entailed by the restructuring; and

§§ not associated with the ongoing activities of the entity

Contingent assets and contingent liabilities are not recognised. Contingencies are

disclosed in note 25.

1.9 COMMITMENTS

Items are classified as commitments when an entity has committed itself to future

transactions that will normally result in the outflow of cash.

Disclosures are required in respect of unrecognised contractual commitments.

Commitments for which disclosure is necessary to achieve a fair presentation

should be disclosed in a note to the financial statements, if both the following

criteria are met:

§§ Contracts should be non-cancellable or only cancellable at significant cost (for

example, contracts for computer or building maintenance services); and

§§ Contracts should relate to something other than the routine, steady, state

business of the entity – therefore salary commitments relating to employment

contracts or social security benefit commitments are excluded.

1.10 REVENUE FROM EXCHANGE TRANSACTIONS

Revenue is the gross inflow of economic benefits or service potential during the

reporting period when those inflows result in an increase in net assets.



Accounting Policies

An exchange transaction is one in which the agency receives assets or services, or

has liabilities extinguished, and directly gives approximately equal value (primarily in

the form of goods, services or use of assets) to the other party in exchange.

Fair value is the amount for which an asset could be exchanged, or a liability settled,

between knowledgeable, willing parties in an arm’s length transaction.

Measurement

Revenue is measured at the fair value of the consideration received or receivable.

Interest

Revenue arising from the use by others of agency assets yielding interest is recognised

when:

§§ it is probable that the economic benefits or service potential associated with

the transaction will flow to the entity; and

§§ the amount of the revenue can be measured reliably.

Interest is recognised, in surplus or deficit, using the effective interest rate method.

1.11 REVENUE FROM NON-EXCHANGE TRANSACTIONS

Non-exchange transactions are defined as transactions where the agency receives

value from another agency without directly giving approximately equal value in

exchange.

Recognition and measurement

Revenue from non-exchange transactions (including government grants) is

recognised to the extent that the asset received qualifies for recognition, and there

is no corresponding liability due to conditions associated with the transfer. Revenue is

measured at the fair value of the consideration received or receivable.

Government grants

An inflow of resources from a non-exchange transactions other than services rendered,

that meet the definition of an asset is recognised as an asset when:

§§ it is probable that the economic benefits or service potential associated with

the transaction will flow to the entity; and

§§ the amount of the revenue can be measured reliably.

The entity assesses the degree of certainty attached to the flow of future economic

benefits or service potential on the basis of the available evidence. Certain grants

payable by one level of government to another are subject to the availability of funds.

Revenue from these grants is only recognised when it is probable that the economic

benefits or service potential associated with the transaction will flow to the agency.

An announcement at the beginning of a financial year that grants may be available for

qualifying agencies in accordance with an agreed program may not be sufficient

evidence of the probability of the flow. Revenue is then only recognised once evidence

of the probability of the flow becomes available.

Conditions on government grants may result in such revenue being recognised on

a time proportion basis. Where there is no condition on the period, such revenue is

recognised on receipt or when the Act becomes effective, which-ever is earlier.



Accounting Policies

1.12 BORROWING COSTS

Borrowing costs are interest and other expenses incurred by an entity in connection with

the borrowing of funds. Borrowing costs are recognised as an expense in the period in

which they are incurred.

1.13 FRUITLESS AND WASTEFUL EXPENDITURE

Fruitless expenditure means expenditure which was made in vain and would have been

avoided had reasonable care been exercised.

All expenditure relating to fruitless and wasteful expenditure is recognised as an expense

in the statement of financial performance in the year that the expenditure was incurred.

The expenditure is classified in accordance with the nature of the expense, and where

recovered, it is subsequently accounted for as revenue in the statement of financial

performance.

1.14 IRREGULAR EXPENDITURE

Irregular expenditure as defined in section 1 of the PFMA is expenditure other than

unauthorised expenditure, incurred in contravention of or that is not in accordance with

a requirement of any applicable legislation, including -

(a) this Act; or

(b) the State Tender Board Act, 1968 (Act No. 86 of 1968), or any regulations made in

terms of the Act; or

(c) any provincial legislation providing for procurement procedures in that provincial

government.

All expenditure relating to irregular expenditure is recognised as an expense in the

statement of financial performance in the year that the expenditure was incurred.

The expenditure is classified in accordance with the nature of the expense, and where

recovered, it is subsequently accounted for as revenue in the statement of financial

performance.

1.15 SEGMENT INFORMATION

A segment is an activity of an entity:

§§ that generates economic benefits or service potential (including economic

benefits or service potential relating to transactions between activities of the

same entity);

§§ whose results are regularly reviewed by management to make decisions about

resources to be allocated to that activity and in assessing its performance; and

§§ for which separate financial information is available.

Reportable segments are the actual segments which are reported on in the segment

report. They are the segments identified above or alternatively an aggregation of two or

more of those segments where the aggregation criteria are met.

Measurement

The amount of each segment item reported is the measure reported to management

for the purposes of making decisions about allocating resources to the segment

and assessing its performance. Adjustments and eliminations made in preparing the

entity’s financial statements and allocations of revenues and expenses are included

in determining reported segment surplus or deficit only if they are included in the



Accounting Policies

1.15 SEGMENT INFORMATION (CONTINUED)

measure of the segment’s surplus or deficit that is used by management. Similarly, only

those assets and liabilities that are included in the measures of the segment’s assets

and segment’s liabilities that are used by management are reported for that segment. If

amounts are allocated to reported segment surplus or deficit, assets or liabilities, those

amounts are allocated on a reasonable basis.

If management uses only one measure of a segment’s surplus or deficit, the segment’s

assets or the segment’s liabilities in assessing segment performance and deciding how

to allocate resources, segment surplus or deficit, assets and liabilities are reported in

terms of that measure. If management uses more than one measure of a

segment’s surplus or deficit, the segment’s assets or the segment’s liabilities, the

reported measures are those that management believes are determined in accordance

with the measurement principles most consistent with those used in measuring the

corresponding amounts in the entity’s financial statements.

1.16 BUDGET INFORMATION

The annual financial statements and budget are not presented on the same basis

as the financial statements are prepared on accrual basis and the budget on a cash

basis of accounting. A reconciliation between the surplus/(deficit) for the period as per

statement of financial performance and budgeted surplus/(deficit) is included in the

statement of comparison of budget and actual amounts.

1.17 RELATED PARTIES

The agency operates in an economic sector currently dominated by entities directly

or indirectly owned by the South African Government. As a consequence of the

constitutional independence of the three spheres of government in South Africa, only

entities within the national sphere of government are considered to be related parties.

Key management is defined as being individuals with the authority and responsibility

for planning, directing and controlling the activities of the agency. The agency regards

all individuals from the level of Chief Executive Officer and Executive Managers as key

management per the definition of the financial reporting standard.

Close family members of key management personnel are considered to be those family

members who may be expected to influence, or be influenced by key management

individuals, in their dealings with the agency.

Related party disclosures for transactions between government entities that took place

on terms and conditions that are considered ‘at arms-length’ and ‘in the ordinary course

of business’ are not disclosed in accordance with IPSAS 20 - ‘Related Party Disclosures’.



Accounting Policies

2. NEW STANDARDS AND INTERPRETATIONS

2.1 STANDARDS ISSUED BUT NOT YET EFFECTIVE

In the current year, the entity has adopted the following standards and interpretations

that are effective for the current financial year and that are relevant to its operations:

GRAP 32: Service Concession Arrangements: Grantor

The objective of this Standard is: to prescribe the accounting for service concession

arrangements by the grantor, a public sector entity.

It furthermore covers: Definitions, recognition and measurement of a service concession

asset, recognition and measurement of liabilities, other liabilities, contingent liabilities,

and contingent assets, other revenues, presentation and disclosure, transitional

provisions, as well as the effective date.

The effective date of the standard is not yet set by the Minister of Finance.

The entity has adopted the standard for the first time when the Minister sets the effective

date for the standard. The impact of the standard is not material.

GRAP 108: Statutory Receivables

The objective of this Standard is: to prescribe accounting requirements for the

recognition, measurement, presentation and disclosure of statutory receivables.

It furthermore covers: Definitions, recognition, derecognition, measurement,

presentation and disclosure, transitional provisions, as well as the effective date.


The entity has adopted the standard for the first time when the Minister sets the effective

date for the standard. The impact of the standard is not material.

IGRAP 17: Service Concession Arrangements where a Grantor Controls a Significant Residual Interest in an Asset

This Interpretation of the Standards of GRAP provides guidance to the grantor where

it has entered into a service concession arrangement, but only controls, through

ownership, beneficial entitlement or otherwise, a significant residual interest in a

service concession asset at the end of the arrangement, where the arrangement does

not constitute a lease. This Interpretation of the Standards of GRAP shall not be

applied by analogy to other types of transactions or arrangements.

A service concession arrangement is a contractual arrangement between a grantor and

an operator in which the operator uses the service concession asset to provide a

mandated function on behalf of the grantor for a specified period of time. The operator

is compensated for its services over the period of the service concession arrangement,

either through payments, or through receiving a right to earn revenue from third

party users of the service concession asset, or the operator is given access to another

revenue-generating asset of the grantor for its use.

Before the grantor can recognise a service concession asset in accordance with the

Standard of GRAP on Service Concession Arrangements: Grantor, both the criteria as

noted in paragraph .01 of this Interpretation of the Standards of GRAP need to be met.

In some service concession arrangements, the grantor only controls the residual interest

in the service concession asset at the end of the arrangement, and can therefore not



Accounting Policies

2.1 STANDARDS ISSUED BUT NOT YET EFFECTIVE (CONTINUED)

recognise the service concession asset in terms of the Standard of GRAP on Service

Concession Arrangements: Grantor.

A consensus is reached, in this Interpretation of the Standards of GRAP, on the recognition

of the performance obligation and the right to receive a significant interest in a service

concession asset.


The entity has adopted the standard for the first time when the Minister sets the

effective date for the standard.

The impact of the standard is not material.



Notes to the Annual Financial Statements

Figures in Rands 2017 2016

3. INVENTORIESStationery and consumables 13 869 773 13 786 932

Postage/franking machine 1 630 322 3 169 07315 500 095 16 956 005

4. RECEIVABLES FROM EXCHANGE TRANSACTIONSStaff debtors 7 220 706 2 003 672

Other debtors 163 579 281 621Inter-departmental claims 3 127 139 7 601 301

10 511 424 9 886 594

Receivables pledged as securityReceivables were not pledged as security for any financial liability.

Credit quality of receivablesThe credit quality of trade and other receivables that are neither past nor due nor impaired can be assessed by reference to historical information about counterparty default rates.

Fair value of receivablesThe fair value of receivables approximates the carrying amount due to their short term nature.

Carrying value 12 263 754 11 957 556Provision for doubtful (1 752 330) (2 070 962)

10 511 424 9 886 594





Reconciliation of provision for impairment of receivables

Opening balance 2 070 962 5 578 951Provision for impairment 204 260 164 721Amounts written off as uncollectible (522 892) (3 672 710)

1 752 330 2 070 962

5. PREPAYMENTSPrepaid annual consulting, support and subscription feesOpening balance 14 548 250 12 657 719Amount realised as an expense (78 620 138) (94 478 798) Increased for the period 81 167 187 96 369 329

17 095 299 14 548 250

6. CASH AND CASH EQUIVALENTSCash and cash equivalents consist of:

Petty cash 105 000 105 000

Bank balances 777 277 156 1 227 154 084777 382 156 1 227 259 084

Credit quality of cash at bank and short term deposits, excluding cash on hand

The credit quality of cash at bank and short term deposits, excluding cash on hand that are neither past due nor impaired can be assessed by reference to external credit ratings (if available) or historical information about counterparty default rates.

The vast majority of the agency’s funds are not held within a commercial bank, therefore the agency is not exposed to credit risk.




Figures in Rands

7. PROPERTY, PLANT AND EQUIPMENT2017 2016

Cost

Accumulated depreciation and

accumulated impairment

Carrying value Cost

Accumulated depreciation

and accumulated impairment

Carrying value

Land 519 500 - 519 500 519 500 - 519 500Buildings 245 620 730 (24 472 557) 221 148 173 172 351 953 (16 734 841) 155 617 112Leasehold property 2 097 067 (593 322) 1 503 745 53 085 (39 813) 13 272Work in progress 822 982 - 822 982 6 018 677 - 6 018 677Furniture and fixtures 184 160 113 (68 577 508) 115 582 605 174 214 240 (61 967 902) 112 246 338Motor vehicles 293 146 647 (111 782 560) 181 364 087 299 404 031 (103 220 928) 196 183 103Office equipment 13 420 541 (6 605 599) 6 814 942 14 269 533 (6 265 030) 8 004 503IT equipment 424 873 321 (189 421 940) 235 451 381 392 245 932 (154 485 475) 237 760 457Finance lease assets 169 651 (169 651) - 535 215 (444 110) 91 105Machinery and equipment 96 962 081 (33 855 178) 63 106 903 82 078 460 (25 746 865) 56 331 595Communication equipment 15 042 463 (11 972 241) 3 070 222 15 887 830 (11 920 738) 3 967 092Total 1 276 835 096 (447 450 556) 829 384 540 1 157 578 456 (380 825 702) 776 752 754




Figures in Rands

Reconciliation of property, plant and equipment - 2017

Opening balance Additions Disposals Reclassifications Depreciation Carrying valueLand 519 500 - - - - 519 500Buildings 155 617 112 68 174 544 - 5 105 632 (7 749 115) 221 148 173Leasehold property 13 272 2 043 983 - (5) (553 505) 1 503 745Work in progress 6 018 677 131 547 - (5 327 242) - 822 982Furniture and fixtures 112 246 338 20 620 939 (2 972 712) (22 151) (14 289 809) 115 582 605Motor vehicles 196 183 103 2 946 148 (2 846 833) - (14 918 331) 181 364 087Office equipment 8 004 503 695 260 (485 687) 6 756 (1 405 890) 6 814 942IT equipment 237 760 457 54 321 321 (3 886 454) 3 142 (52 747 085) 235 451 381Finance lease assets 91 105 - - 5 (91 110) -Machinery and equipment 56 331 595 17 080 161 (602 937) 233 863 (9 935 779) 63 106 903Communication equipment 3 967 092 226 587 (63 599) - (1 059 858) 3 070 222

776 752 754 166 240 490 (10 858 222) - (102 750 482) 829 384 540

Reconciliation of property, plant and equipment - 2016

Opening balance Additions Disposals Reclassifications Depreciation Carrying valueLand 519 500 - - - - 519 500Buildings 98 735 817 53 969 077 - 6 936 586 (4 024 368) 155 617 112Leasehold property - 53 085 - - (39 813) 13 272Work in progress 14 996 244 - - (8 977 567) - 6 018 677Furniture and fixtures 115 913 329 14 955 725 (6 687 291) - (11 935 425) 112 246 338Motor vehicles 233 146 265 1 998 067 (5 131 600) - (33 829 629) 196 183 103Office equipment 6 463 610 2 961 579 (241 801) - (1 178 885) 8 004 503IT equipment 223 291 599 66 445 909 (7 300 440) - (44 676 611) 237 760 457Finance lease assets 318 990 - (6 873) - (221 012) 91 105Machinery and equipment 30 729 181 30 807 281 (1 004 686) 2 040 981 (6 241 162) 56 331 595Communication equipment 5 191 456 622 055 (254 925) - (1 591 494) 3 967 092

729 305 991 171 812 778 (20 627 616) - (103 738 399) 776 752 754





7. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

Assets subject to finance lease (Net carrying amount)

Leasehold property 1 503 745 13 272

Finance lease assets - 91 1051 503 745 104 377

These assets serve as security for the lease obligation under Note 9.

Reclassification of categories

Certain categories o Property, plant and equipment have been reclassified to enhance fair presentation, none of the reclassifications are considered material to warrant individual disclosure of the amounts concerned.




Figures in Rands

8. INTANGIBLE ASSETS

2017 2016

Cost

Accumulated amortisation


Carrying value Cost

Accumulated amortisation


Carrying value

Computer software 112 130 295 (83 256 952) 28 873 343 112 130 295 (72 043 255) 40 087 040

Reconciliation of intangible assets - 2017Opening balance Amortisation Carrying value

Computer software 40 087 040 (11 213 697) 28 873 343

Reconciliation of intangible assets - 2016

Opening balance Additions Disposals Amortisation Carrying valueComputer software 51 289 798 87 088 (63 750) (11 226 096) 40 087 040





9. FINANCE LEASE OBLIGATIONMinimum lease payments due- within one year - 268 458

- 268 458 less: future finance charges - (70 013)Present value of minimum lease payments - 198 445

Present value of minimum lease payments due- within one year - 198 445

The average lease term is between 2-5 years and the average effective borrowing rate is linked to the prime rate as determined by the South African Reserve Bank. Interest rates are fixed at the contract date. All the leases have fixed repayment terms. No arrangements have been entered into for contingent rent. Obligations under finance leases are secured by the lessor’s title to the leased asset.

The agency did not default on any interest or capital portions on any of the finance leases. None of the terms attached to the finance leases were renegotiated in the period under review.

The agency’s obligations under finance leases are secured by the lessor’s charge over the leased assets. Refer note 7.





10. OPERATING LEASE LIABILITY

Contractual payments 178 037 541 138 560 085

Straight line basis expense 192 791 517 164 373 87614 753 976 25 813 791

Operating leases - as lessee (expense - Minimum lease payments due)

Within one year 138 512 116 175 459 152

In second to fifth year inclusive 132 684 628 111 954 097later than five years 5 823 360 5 430

277 020 104 287 418 679

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference between the amounts recognised as an expense and the

contractual payments have been recognised as an operating lease liability.

Operating lease payments represent rentals payable by the agency for certain of its office properties and equipment. Leases are negotiated for periods ranging from 12 months to 120 months. The leases escalate on average between 5% and 10%. The operating lease liability at the end of the period is R14,753,976 (2016: R25,813,791).





11. PAYABLES FROM EXCHANGE TRANSACTIONS

Trade payables 200 521 455 273 611 018Inter-departmental claims 279 518 672 364Payroll - Third-party 13 818 32 676Housing accrual 12 721 15 607 500Accrued service bonus 85 743 562 80 167 297Accrued expenses 105 308 321 124 245 309

391 879 395 494 336 164

Fair value of trade and other payablesTrade payables 200 521 455 273 611 018Inter-departmental claims 279 518 672 364Payroll - Third-party 13 818 32 676Housing accrual 12 721 15 607 500Accrued service bonus 85 743 562 80 167 297Accrued expense 105 308 321 124 245 309

391 879 395 494 336 164

The fair value of payables approximate the carrying amount due to their short term nature.




Figures in Rands

12. PROVISIONS

Reconciliation of provisions - 2017

Opening Balance Additions Utilised during

the year Total

Provisions for shared services and other third-party 13 946 117 7 938 554 (8 189 452) 13 695 219Provision for leave pay 227 986 040 283 794 378 (277 599 042) 234 181 376Provision for performance bonus 38 909 467 37 665 563 (33 983 007) 42 592 023

280 841 624 329 398 495 (319 771 501) 290 468 618

Reconciliation of provisions - 2016

Opening Balance Additions Utilised during

the year Total

Provisions for shared services and other third-party 23 981 579 7 132 222 (17 167 684) 13 946 117Provision for leave pay 223 454 415 260 406 416 (255 874 791) 227 986 040Provision for performance bonus 36 772 952 36 772 952 (34 636 437) 38 909 467

284 208 946 304 311 590 (307 678 912) 280 841 624

The provision for performance bonus represents the estimated liability in respect of performance bonus to be paid out.

The provision for leave pay includes both capped and uncapped leave entitlement to employees. The agency policy rate used in the calculation for the provision for leave pay is the same for both capped and uncapped entitled leave.

The provision for shared services and other third-party represents shared services and other third-party incurred by the agency still outstanding at year end.





13. REVENUE FROM EXCHANGE TRANSACTIONS

Tender documentation, waste papers and others 60 104 60 068

Commission received 202 991 281 425Rental income - Parking 379 384 349 850Recovery of bad debts written off 7 198 835 6 632 334Skills development refund 4 676 848 16 461 037

12 518 162 23 784 714

14. REVENUE FROM NON-EXCHANGE TRANSACTIONS

Government grant 6 908 932 000 6 642 962 000

No amount of government grant received during the year was conditional, resulting in the full amount received being recognised as revenue.





15. OPERATING DEFICIT

Operating deficit for the year is stated after accounting for the following material items:

Operating lease chargesLease rentals on operating leaseStraight linning of operating leases 192 791 517 164 373 876

Personnel costs 2 895 698 815 2 643 371 666Social assistance service fees 2 062 877 697 2 025 558 821Computer expenses 330 280 544 312 844 099Security 268 792 597 181 590 269Travel - local 122 062 834 127 429 821Consulting and professional fees 239 759 057 108 220 038Depreciation on property, plant and equipment 102 750 436 103 738 400Telephone and fax 39 781 430 40 497 707Loss on sale of property, plant and equipment 9 330 871 17 314 250Motor vehicle expense 71 015 145 6 457 755Amortisation on intangible assets 11 213 699 11 226 096

16. INTEREST REVENUEBank interest received 6 951 8 086

Interest on other receivables 520 312 302 691

527 263 310 777





17. PERSONNEL COSTSBasic 2 021 838 074 1 841 289 729

Service and performance bonuses 204 855 250 185 411 829Medical aid - company contributions 165 914 592 148 129 802Bargain council 278 932 357 539Defined contribution plans 252 408 590 229 348 850Overtime payments 15 751 593 22 635 406Housing benefits and allowances 103 858 972 88 974 407Serviced based remuneration 2 223 574 1 560 494Circumstantial compensation 7 309 045 5 252 815Non pensionable allowance 121 260 193 120 410 795

2 895 698 815 2 643 371 666

18. FINANCE COSTS

Finance charge incurred on finance leases 70 013 300 289

19. ADMINISTRATIVE EXPENSES

Advertising 120 598 979 91 472 302

Auditors remuneration 17 701 555 17 929 605Bank charges 1 753 502 1 705 761Cleaning 82 052 839 82 745 892Computer expenses 330 280 544 312 844 099Consulting and professional fees 239 759 057 108 220 038Consumables 10 245 919 17 618 216





Entertainment 26 285 168 24 282 981Medical expenses 94 643 766 86 442 800Motor vehicle expenses 71 015 145 6 510 367Postage and courier 40 434 864 14 528 139Printing and stationery 66 625 629 66 926 250Security 268 792 597 181 590 269Cellphone, telephone and fax expenses 49 460 533 51 626 933Training 17 279 117 24 018 398Travel - local 122 062 834 127 429 821Travel - overseas 519 340 778 252Staff bereavement* 145 000 125 000Other administrative expenses 58 151 165 18 559 253Assets expensed 2 035 412 3 269 834Utilities - Municipal services 49 902 085 48 291 867Uniforms 405 847 8 072 193Communication licences 2 303 257 3 328 083Resettlement cost 8 470 404 8 902 020Health and wellness expenses 23 592 410 21 903 170Rentals 176 431 336 168 529 499Venue expenses 42 708 870 91 759 367Staff Bursaries* 4 991 253 7 054 012Straight lining of operating lease 192 791 517 164 373 876

2 121 439 944 1 760 838 297

*In the period under review, the agency discovered a non-adjusting prior-period error for both staff bursaries and staff bereavement amounting to R7.2 million. Staff bursaries and staff bereavement were incorrectly classified as personnel costs in the previous financial years and in the current year the error has been corrected hence the difference in the 2016 financial year totals of personnel costs and administrative costs retrospectively.





20. SOCIAL ASSISTANCE SERVICE FEESocial assistance service fee 2 062 877 697 2 025 558 821

Fees paid to the service provider for cash handling and payment of social assistance to beneficiaries.

21. TAXATION

No provision has been made for 2017 tax as the Agency is exempt from income tax in terms of section 10(1)(cA)(i)of the Tax Act, 1962.

22. AUDITORS’ REMUNERATION

Fees for audit services rendered 17 701 555 17 929 605





23. CASH (USED IN) GENERATED FROM OPERATIONS

Deficit

Adjustments for: (302 654 855) (36 734 911)

Depreciation and amortisation 113 964 135 114 964 496

Loss on disposal of assets 9 330 871 17 314 250Finance costs - Finance leases 70 013 300 289Interest income (527 263) (310 777)Movements in operating lease (11 059 815) (10 228 547)Movements in provisions 9 626 994 (3 367 322)Prior period errorChanges in working capital: - (45 804 074)Inventories 1 455 910 6 413 716Receivables from exchange transactions (624 830) (3 396 371)Prepayments (2 547 049) (1 890 530)Payables from exchange transactions (102 456 773) 195 044 652

(285 422 662) 232 304 871





24. COMMITMENTS

Authorised capital expenditure

Total capital commitmentsAlready contracted for but not provided for 30 708 457 70 836 924Not yet contracted for and authorised by member 1 012 970 636 462 629

31 721 427 707 299 553

Authorised operational expenditure

Total operational commitmentsAlready contracted for but not provided for 1 829 058 323 572 503 046Not yet contracted for and authorised by member 2 401 680 -

1 831 460 003 572 503 046Total commitments

Total commitmentsAuthorised capital expenditure 31 721 427 707 299 553Authorised operational expenditure 1 831 460 003 572 503 046

1 863 181 430 1 279 802 599

24.1 SOCIAL ASSISTANCE FEES

SASSA has extended the contract with CPS in relation to the grant payment services with effect from 01 April 2017 ending period 31 March 2018 as per Condtitional court order of 17 March 2017 . The contract was extended with the same terms and conditions where CPS bills SASSA R16.44 per transaction and SASSA budgeted R2 billion as commitment to this effect. The court judgement stated that CPS may in writing request National Treasury during the twelve months period to investigate and make the recommendations regarding the price in the contract.





25. CONTINGENCIES

Contingent liabilities

SIU 36 333 949 36 333 949Various claims 23 201 055 21 564 919Upgrade of salary levels 9 and 11 to levels 10 and 12 respectively (Resolution 3 of 2009) - Case no:PSCBC 88-13/14 39 927 661 37 315 571Retention of 2015/16 cash surplus not yet approved by National Treasury 95 708 557 -

195 171 222 95 214 439

The reason for these contingent liabilities are as follows:

§§ SIU

Subsequent to the establishment of SASSA, the administration and payment of social grant function was transferred from the Department of Social Development to SASSA. The SIU was, at that stage, tasked to investigate, inter alia, serious maladministration in connection with the affairs of the Department of Social Development, improper or unlawful conduct by officials and/or employees of the Department of Social Development and so forth in terms of the “Proclamation No. R 18 of 2005”.

The mandate of the SIU was still linked to the administration and payment of social grant function; which meant that the investigation had to follow the function which was transferred to SASSA.

SASSA concluded a contract with the SIU during April 2008, which contract had subsisted until March 2012, after the issuing of the “Proclamation No. 27 of 2010”.

SIU is currently claiming to have executed certain services post the expiry of the contract it concluded with SASSA; however SASSA is unable to verify such alleged services and is in discussion with SIU in that regard.

§§ Various Claims

Claims by SASSA employees for allegedly wrongful and unlawful suspensions - R 2,400,000 as at 31 March 2017. Motor vehicle accident claims from third parties is R 553,986 as at 31 March 2017, the liability has not been determined.

Claims from GEPF in respect of former members of the fund amounting to R 360,484 as at 31 March 2017.

Claims for reinstatement conditions, employment benefits and allowances, unjustified termination of contract and review application amounting to R 5,117,209 as at 31 March 2017.




Claim for payment of a capital amount stemming from a contract R 6,232,835 as at 31 March 2017.

Claims for personal injuries and damages to private property amounting to R 2,489,582 as at 31 March 2017. Defamation of Character claims against SASSA; its employees and Stemele amounting to R 5,550,000 as at 31 March 2017.

§§ Upgrade of salary levels

In 2012 a resolution was taken to upgrade level 9 and 11 to level 10 and 12 respectively. Implementation of upgrade of salary levels from level 9 and 11 to level 10 and 12 respectively for phase 2 has been placed on hold pending the determination from the Minister of Public Service and Administration.

§§ Retention of 2015/16 cash surplus not yet approved

SASSA has requested to retain the 2015/16 cash surplus and still waiting for approval from National Treasury.

26. RELATED PARTIES

Due to the agency being a National Public Agency, all other entities within the national sphere of government are deemed to be related parties. Most notably, the agency is related to the Department of Social Development, the Minister being the agency’s Executive Authority. The agency and National Development Agency are schedule 3A public entities under Department of Social Development.

The agency receives from, and is dependent on the Department of Social Development for funding, and this has been disclosed as grant revenue received in note 14. In accordance with IPSAS 20: Related Parties, disclosure of related party transactions and balances are only required where these took place on terms that are not usual in the sector or generally available to the broader public.

Inter-departmental claims are generally based on arms length transactions. Refer to note 27 for key management emoluments.

The agency has made provision for services received from other related parties as part of

its general accruals and consequently considers these transactions to be at arms length.

The agency holds nine bank accounts with First National Bank on behalf of the

department of social development. These bank accounts are used as a facility to

accept cash payments from debtors whereas cash payments cannot be made directly

to the paymaster general account or South African Reserve Bank; which is the official

Government banker. The transactions in these bank accounts are swept (transferred) on

a daily basis to the paymaster general accounts with a two days turn around time. These

amounts are disclosed in the Interim financial statements of the Department of Social

Development.

The following funds also fall under the Executive Authority of the Department of Social

Development:

§§ State President Fund;

§§ Social Relief Fund;

§§ Refugee Relief Fund; and

§§ Disaster Relief Fund.




Figures in Rands

27. KEY MANAGEMENT EMOLUMENTS - EXECUTIVES2017

Emoluments Service Bonus Car Allowance Other benefits TotalMr TW Magwaza (CEO) 492 844 98 569 - 240 555 831 968Dr VL Petersen (CEO-Contract ended) 288 207 13 079 18 253 231 597 551 136Mr TJ Chauke (CFO) 883 691 73 195 24 000 491 486 1 472 372Mr AS Mahlangu (CIO) 1 070 643 110 770 113 617 256 010 1 551 040Ms Ramokgopa (EM-Strategy) 1 154 166 87 173 80 000 284 248 1 605 587Ms PD Ndlovu (Acting EM-Corporate Service) 804 068 64 975 18 000 439 599 1 326 642Ms MT Sibanyoni (EM-Internal Audit) 883 612 73 195 75 996 461 738 1 494 541Ms DE Dunkerley (EM-Policy implementation) 968 707 82 133 60 000 274 269 1 385 109Mr SP Yawa (REM-EC) 868 630 73 665 178 476 328 225 1 448 996Mr BB Maqetuka (REM-WC) 883 691 74 980 239 640 343 226 1 541 537Mr MB Tsosane (Acting REM-FS) 769 129 53 428 50 000 345 917 1 218 474Mr AR Malope (Acting REM-MP) 746 234 - 137 500 161 211 1 044 945Mr MT Matlou (REM-GP) 928 927 76 941 156 000 164 701 1 326 569Ms PS Bengu (REM-KZN) 1 030 973 85 394 72 000 283 931 1 472 298Ms MM Mamabolo (Acting REM-LP) 837 494 56 707 120 000 365 053 1 379 254Mr MM Mogane (REM-MP) 883 691 73 195 210 588 304 898 1 472 372Ms Z Mpeta (REM-EC) 869 630 54 230 60 000 321 924 1 305 784Ms EZ Mvulane (REM-Projects) 808 168 66 939 108 000 363 431 1 346 538Mr AF Sethokga (Acting REM-NW) 876 355 58 150 96 000 286 107 1 316 612Mr W Terblanche (REM-WC Resigned) 547 377 87 791 15 000 665 666 1 315 834Ms SM Setlaba (Acting REM-FS) 959 066 67 151 72 000 207 893 1 306 110

17 555 303 1 431 660 1 905 070 6 821 685 27 713 718




Figures in Rands

2016

Emoluments Service bonus Car allowance Other benefits TotalDr VL Petersen (CEO) 1 159 633 104 689 150 000 489 347 1 903 669Mr TJ Chauke (CFO) 821 394 62 322 22 000 447 083 1 352 799Mr AS Mahlangu (CIO) 173 383 - 6 766 53 093 233 242Ms Ramokgopa (EM-Strategy) 980 427 81 702 80 000 281 735 1 423 864Ms PD Ndlovu (Acting EM-Corporate services) 454 825 63 390 10 500 262 344 791 059Ms MT Sibanyoni (EM-Internal Audit) 911 381 75 948 75 996 463 521 1 526 846Ms ED Dunkerley (EM-Policy Implementation) 887 464 73 955 55 000 250 627 1 267 046Mr F Earl (EM-Benefits Transfers) 380 342 - 110 600 151 441 642 383Mr C Vundule (Acting CIO) 642 802 62 322 70 000 309 288 1 084 412Mr SP Yawa (REM-EC) 871 576 72 632 176 103 368 617 1 488 928Mr BB Maqetuka (REM-FS) 891 011 74 251 229 670 302 116 1 497 048Mr MT Matlou (REM-GP) 913 393 76 116 156 000 172 866 1 318 375Ms TE Ntabeni (Acting REM-GP) 181 646 - 15 000 87 944 284 590Ms MT Makhetha (Acting REM-GP) 260 797 - 34 000 106 258 401 055Ms PS Bengu (REM-KZN) 999 730 83 311 72 000 284 443 1 439 484Ms MM Mamabolo (Acting REM-LP) 831 754 54 507 120 000 285 546 1 291 807Mr MM Mogane (REM-MP) 913 882 76 157 210 588 342 087 1 542 714Ms Z Mpeta (REM-NC) 369 367 - 25 000 136 721 531 088Ms EZ Mvulane (REM-NW ) 783 679 65 307 108 000 349 146 1 306 132Mr AF Sethokga (Acting REM-NW ) 425 403 - 35 500 168 656 629 559Mr W Terblanche (REM-WC) 1 062 850 88 607 30 000 350 187 1 531 644

14 916 739 1 115 216 1 792 723 5 663 066 23 487 744





TOTAL KEY MANAGEMENT EMOLUMENTS

Emoluments 17 555 303 14 916 739Service Bonus 1 431 660 1 115 216Car Allowance 1 905 070 1 792 723Other benefits 6 821 685 5 663 066Total 27 713 718 23 487 744

These emoluments have been included in Note 17 Personnel cost.

28. RISK MANAGEMENT

LIQUIDITY RISK

The agency’s liquidity risk is a result of the funds available to cover future commitments. The agency manages liquidity risk through an ongoing review of future commitments.

All the payable balances reflected at year end are payable within 30 days.

CREDIT RISK

The agency does not sell any goods or charge money for any of its services. Debtors relate to employees that have loans with the agency. Management evaluates credit risk relating to debtors on an ongoing basis.

Credit risk consists mainly of cash deposits and cash equivalents. Financial assets exposed to credit risk at year end were as follows:

Receivables: R 10,511,424 (2016: R 9, 886, 594)





FOREIGN EXCHANGE RISK

The agency does not hedge foreign exchange fluctuations. The agency does not have any foreign account receivables, foreign accounts payables or derivative market instruments.

PRICE RISK

Due to the nature and extent of the agency’s activities, the agency is not exposed to price risks.

29. GOING CONCERN

The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. Refer to accounting authority report for details. The agency is established in terms of the South African Social Security Agency Act, No. 9 of 2004 and depends on grants from the Department of Social Development.

30. FRUITLESS AND WASTEFUL EXPENDITUREFruitless and wasteful expenditureopening balance 10 911 019 7 085 159

Fruitless and wasteful expenditure - current year 1 453 780 6 339 405Fruitless and wasteful expenditure - write-off (420 207) (1 616 016)Transferred to receivables for recovery (377 753) (2 462 817)Correction of prior year error (71 939) 1 565 288Transferred to damages and losses register (4 945 793) -

6 549 107 10 911 019




Figures in Rands

Details of fruitless and wasteful expenditure – current year

Interest and penalties 254 846

Hotel-no shows 74 605Other matters 1 124 329

1 453 780

A sum of R 71,939 relating to correction of amounts recorded when cases were initially reported. The correct amount were discovered during investigation process.

Fruitless and wasteful expenditure was incurred by various regional offices and head office which consists mainly of repairs cost on damaged rental vehicles, lost laptops and accommodation booked but not utilised (no shows). Details of all incidents are recorded in the agency’s fruitless and wasteful expenditure register.

DAMAGES AND LOSSES

An amount of R 4,945,793 relating to cases of damages and losses previously included in the registers of fruitless and wasteful expenditure.

Damages and losses were incurred by various regional offices and head office which consists mainly of repairs cost on damaged rental vehicles and lost laptops. Details of all incidents are recorded in the agency’s damage and loss register and are investigated to determine any possible recoveries.





31. IRREGULAR EXPENDITURE

Opening balance 1 140 306 898 93 074 738Add: Irregular expenditure - current year 326 159 810 1 047 411 308Less: Amounts condoned (43 348 536) - Less: Amounts found not to be irregular (6 917 405) - Adjustment - condoned in the prior year - (179 148) Correction of prior year error (11 539 496) - Less: Transferred to debtors (39 669) -

1 404 621 602 1 140 306 898

Details of irregular expenditure – current year

Disciplinary steps taken/criminal proceedingsCIDB non-compliance Internal investigations are still in process 24 622 910Extension of other contracts and lease payments Internal investigations are still in process 29 298 598Local Content non-compliance Internal investigations are still in process 60 266 637Lease payments Referred to national treasury for condonation 135 507 159Forensic investigations - SAB&T Internal investigations are still in process 1 448 639Medical assessments Internal investigations are still in process 3 336 155Work Streams Entity in communication with national treasury 43 242 143Other matters Internal investigations are still in process 28 437 569

326 159 810





Details of irregular expenditure – prior year

Disciplinary steps taken/criminal proceedingsPayment for physical security services Referred to national treasury for condonation 414 050 165Re-registration of grant beneficiaries Referred to national treasury for condonation 316 447 361Lease payments Referred to national treasury for condonation 223 466 398Forensic investigations - SAB&T Internal investigations are still in process 74 603 183Other matters Internal investigations are still in process 18 844 201

1 047 411 308

SASSA embarked on a project to improve its local offices and paypoints development as a result SASSA had to comply to certain standards of CIDB and other building legislations which included but not limited to registration of projects and correct utilisation of CIDB register and class of works.

The non-adherence with the minimum thresholds prescribed for local content in respective of furniture and textile, clothing, leather and footwear sectors.

Correction of error relates to removal of duplicate cases to the amount of R 11,539,496 discovered during the 2016/17.

Irregular expenditure relates mainly to non-adherence to procurement and supply chain management policies and procedures by various regional offices and head office. Examples of non-compliance include payments after the expiry of lease contracts for office buildings and paypoints.

Possible irregular expenditureOpening balance 16 815 110 579 230 398Lease payments - (196 403 492)Forensic Investigations - (49 564 435)Re-registration of beneficiaries - (316 447 361)ICROP 115 922 034 -Extension of ICT Contract 17 318 014 -

150 055 158 16 815 110

SASSA has contracted service provider for ICROP programme, However, the Agency notes some allegations that the company might have provided misleading information in their bids proposal which the Agency relied on when awarding the tender. The Agency is in the process of establishing the facts and verification thereof in order to conclude on the matter.




Figures in Rands

31. IRREGULAR EXPENDITURE (CONTINUED)

The extension of ICT contract was concluded at the beginning of the month of May 2016. National Treasury issued SCM Instruction No.3 of 2016/2017 towards the end of April 2016 with the effective implementation date of the 1st of May 2016. However, SASSA was not in a position to implement the instruction due to the fact that the Agency became aware of the practise note after approval had been granted by the Accounting Authority.

32. FINANCIAL ASSETS BY CATEGORY

The accounting policies for financial instruments have been applied to the line items below:

2017

Receivables Total

Receivables before impairment 10 715 684 10 715 684

Impaired receivables (204 260) (204 260)Cash and cash equivalents 777 382 156 777 382 156

787 893 580 787 893 580

2016

Receivables TotalReceivables before impairment 10 051 315 10 051 315Impaired Receivables (164 721) (164 721)Cash and cash equivalents 1 227 259 084 1 227 259 084

1 237 145 678 1 237 145 678

Receivables from exchange transactions - age analysis as at 31 March 2017

Description 0-3 Months 3-6 Months 6-12 Months 12 Months + Total

Staff debtors 3 170 459 1 951 458 885 976 1 212 813 7 220 706Inter-departmental claims 3 090 781 - - 36 358 3 127 139Other debtors 21 634 26 780 - 115 165 163 579

6 282 874 1 978 238 885 976 1 364 336 10 511 424




Figures in Rands

33. FINANCIAL LIABILITIES BY CATEGORY

The accounting policies for financial instruments have been applied to the line items below:

2017Financial

liabilities at amortised cost

Total

Payables 386 271 564 386 271 564

2016Financial

liabilities at amortised cost

Total

Payables 494 130 978 494 130 978Finance lease obligation 198 445 198 445

494 329 423 494 329 423

34. PRIOR PERIOD ERRORS 2017 2016

The correction of the error results in adjustments as follows:

Statement of financial position

Trade and other payables - non-exchange transactions - (45 804 074) Opening Accumulated Surplus - 45 804 074

SASSA has entered into an operating lease agreement with the Department of Public Works (DPW). DPW has recently embarked on a debt clean up project and discovered that they omitted to bill SASSA for some of the lease; as a result SASSA could not recognise the expenditure with the corresponding liability in the prior financial period. This omission was corrected in the opening balance of accumulated surplus in the year under review.





35. STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS PAID

In cash

Wheelchair - 2 750Metropolitan 1 000 -In KindCoca Cola - 5 000All Sure Boutique and Salon - 9 150Wheelchairs 16 364 -Radios and fans 1 935 -

19 299 16 900

SASSA donated medals to Metropolitan for sports day to the value of R 1,000.00.

SASSA donated nine wheelchairs to the value of R 16,364.

SASSA donated radios and fans to three beneficiaries to the value of R 1,935.00.

Coca cola and All Sure boutique and salon sponsored SASSA with cold drinks and neck and shoulder massages, respectively, during Eden district office employee wellness sport day event.





36. RECONCILIATION BETWEEN BUDGET AND STATEMENT OF FINANCIAL PERFORMANCE

36.1 RECONCILIATION OF BUDGET SURPLUS/DEFICIT WITH THE SURPLUS/DEFICIT IN THE STATEMENT OF FINANCIAL PERFORMANCE:

Net surplus/(deficit) per the statement of financial performance (302 654 855) (36 734 910)

Adjusted for:Depreciation and amortisation 113 964 135 114 964 496Debt Impairment 204 260 164 721Loss on disposal of assets 9 330 871 17 314 250Donations received (361 078) -Net (deficit) surplus per approved budget (179 516 667) 95 708 557




Figures in Rands

36.2 RECONCILIATION OF BUDGET ON CASH BASIS WITH STATEMENT OF FINANCIAL PERFORMANCE ON ACCRUAL BASIS:

Budget on cash basis Final approved

budget

Actual amounts on comparable

basis

Difference between final

budget and actual

ReceiptsRevenue from exchange transactions - 12 518 162 12 518 162Finance income - 527 263 527 263Government grants (6 908 931 000) 6 908 932 000 1 000PaymentsEmployee costs 3 005 150 379 (2 895 698 815) 109 451 564Finance costs - (70 013) (70 013)Repairs and maintenance 25 189 000 (21 407 623) 3 781 377Social assistance 2 135 984 000 (2 062 877 697) 73 106 303Administrative expenses 1 721 735 927 (2 121 439 944) (399 704 017) Capital expenditure 20 871 694 - 20 871 694Net receipts/(payments) - (179 516 667) (179 516 667)




Figures in Rands

Reconciliation between budget and cash flow statement

Operating activities

Financing activities

Investing activities

Total

Actual amount on comparable basis (179 973 917) (70 013) 527 263 (179 516 667)Basis difference (105 448 745) (198 445) (164 713 071) (270 360 261)

(285 422 662) (268 458) (164 185 808) (449 876 928)

36.2.1. Employee costs

The item underspent by 4% due to funded posts that were not filled during the year or posts that were vacated during the year. These include, among others, managerial positions such as; Executive Manager: Corporate Services, Chief Operations Officer, Regional Executive Managers for the Limpopo and Northern Cape regions, General Managers Finance in Limpopo, Eastern Cape and Western Cape regions, General Manager Security Head Office, and Senior Managers Financial Accounting, Facility Management and Demand Management all at Head Office etc.

36.2.2. Social Assistance

The Agency continued to realise cost-efficiencies on the disbursement of grant monies due to spin-offs from the capped rate of R16.44 paid in this regard to the contracted service provider and thus a lower spending than planned on this item.

36.6.3. Administrative Expenses

Since SASSA obtained approval to retain the cash surplus as at end March 2016 certain projects were funded from this retained cash surplus and continued to be implemented in the period under review hence the total expenditure amounting to R7.3 billion (R6.9 billion - Appropriation Fund and R487 million - Cash Surpluses) . These include projects such as Mikondzo, ICROP, Scanning Solution, Work streams for the transition project etc. The effect of funding projects from the retained cash surplus was that spending would be more than the appropriation which would have an effect on the statement of financial position for the reporting period. The main items on which overspending occurred under administrative expenses due to projects funded from the surplus are advertising, venues and facilities, consultants and contractors.





37. STATEMENT OF GIFTS, DONATIONS AND SPONSORHIPS RECEIVED

In KindHewlett Packard Enterprise 361 078 -

The Agency received 10 routers from Hewlett Packard South Africa (Pty) Ltd as a donation in kind.



NOTES

REPORTANNUAL

2016/17

Toll free: 0800 60 10 11www.sassa.gov.za

CONTACT DETAILS

HEAD OFFICE SASSA HOUSE501 Prodinsa Building Cnr Steve Biko and Pretorius StreetPretoriaPrivate Bag X55662 Arcardia, Pretoria 0083

Tel: 012 400 2000 (Switchboard)Website: www.sassa.gov.za

EASTERN CAPE Office BKB Building Cnr Fitzpatrick& Merino Road QuigneyEast LondonPrivate Bag X9001 Chiselhurst East London 5200


FREE STATEAfrican Life Building 75 St. Andrews StreetBloemfonteinPrivate Bag X20553 Bloemfontein 9300

Tel: 051 410 8339Fax: 051 409 0862CPS Call centre 071 771 12 58 / 072 286 7972 / 082 259 8727

GAUTENG28 Harrison StreetJohannesburg 2000Private Bag X120 Marshalltown 2107


KWAZULU NATAL1 Bank StreetPietermaritzburg 3201Private Bag X 9146 Pietermaritzburg 3201


LIMPOPO43 Landros Mare StreetPolokwane 0699Private Bag X9677 Polokwane 0700


MPUMALANGA18 Ferreira StreetNelspruitPrivate Bag X11230 Nelspruit 1200


NORTH WEST 1st Street, Industrial SiteMahikeng 2735Private Bag X44

Tel: 018 397 3386CPS Call Centre 082 344 0493 / 071 100 6483 / 076 710 0862

NORTHERN CAPE95-97 Du Toit Span RoadKimberley 8300Private Bag X6011 Kimberley 8300

Tel: 053 802 4900Fax: 053 832 5225CPS Call Centre 076 030 9929 / 076 662 1545 / 072 186 8095 / 071 416 6324

WESTERN CAPEGolden Acre Adderley StreetCape Town 8001Private Bag X9189 Cape Town 8000


RP260/2017ISBN: 978-0-621-45747-6

Documents

ANNUAL - National Government...REPORT ANNUAL 2016/17 Toll free: 0800 60 10 11 CONTACT DETAILS HEAD OFFICE SASSA HOUSE 501 Prodinsa Building Cnr Steve Biko and Pretorius Street Pretoria