ATC231019: Budgetary Review and Recommendations Report (BRRR) of the Portfolio Committee on Public Service and Administration: Vote 11 Of The Department of Public Service and Administration (DPSA), and the Centre for Public Service Innovation (CPSI) 2022/2023, Dated 18 October 2023

Public Service and Administration

Budgetary Review and Recommendations Report (BRRR) of the Portfolio Committee on Public Service and Administration: Vote 11 Of The Department of Public Service and Administration (DPSA), and the Centre for Public Service Innovation (CPSI) 2022/2023, Dated 18 October 2023

 

1. BACKGROUND

 

The Portfolio Committee on Public Service and Administration (hereinafter referred to as the Portfolio Committee) having considered the directive of the National Assembly, which is in line with Section 5 of the Money Bills Amendment Procedures and Related Matters Act, No. 9 of 2009 to consider and report on the Annual Reports of the Department of Public Service and Administration, and Centre for Public Service Innovation, reports as follows:

 

1. INTRODUCTION

 

Parliament derives its mandate from the Constitution of the Republic of South Africa. The strategic objectives of the Portfolio Committee are informed by five strategic goals of Parliament. The functions of the Portfolio Committee on Public Service and Administration are as follows:

• Participating and providing strategic direction in the development of the legislation and thereafter passing the laws;
• Conducting oversight over the Executive to ensure accountability to the Parliament towards achieving an effective, efficient, developmental and professional public service;
• Conducting public participation and engaging citizens regularly, with the aim to strengthen service delivery; oversee and review all matters of public interest relating to the public sector;
• Monitoring the financial and non-financial aspects of departments and its entities and ensuring regular reporting to the Committee, within the scope of accountability and transparency;
• Supporting and ensuring implementation of the Public Service Commission (PSC) recommendations in the entire public service
• Participating in international treaties which impact on the work of the Committee.

 

1. PURPOSE OF THE BUDGETARY REVIEW AND RECOMMENDATIONS REPORT

In terms of Section 5 of the Money Bills Amendment Procedures and Related Matters Act, No. 9 of 2009 the National Assembly, through its Committees, must annually compile Budgetary Review and Recommendations reports (BRRR) that assesses service delivery and financial performance of departments and may make recommendations on forward use of resources. The BRRR is also a source document for the Committees on Appropriations when considering and making recommendations on the Medium-Term Budget Policy Statement.

 

The Money Bills Amendment Procedures and Related Matters Act, section 5 (3) highlights focus areas on the budgetary review and recommendation report as:

• Providing an assessment of the department’s service delivery performance given available resources.
• Providing an assessment of the effectiveness and efficiency of the departments use and forward allocation of available resources; and
• Including recommendations on the forward use of resources.

 

3.1 Method

 

The Portfolio Committee on Public Service and Administration compiled the 2022/23 BRRR using the following documents:

• The National Development Plan: Vision for 2030.
• Medium Term Strategic Framework 2019 - 2024.
• State of the Nation Address 2022.
• Strategic Plans of the Department and CPSI.
• National Treasury (2022) 4th Quarter Expenditure 2022/23 Financial Year.
• Annual Performance Plans of the Department and CPSI 2022/23.
• Annual Reports 2022/23 of the Department and CPSI.
• Auditor-General South Africa’s outcomes of audit findings 2022/23.
• The Portfolio Committee also met with the leadership and management of the Department and CPSI.

 

1. NATIONAL DEVELOPMENT PLAN VISION 2030

 

The Department of Public Service and Administration is required to implement and coordinate interventions aimed at achieving an efficient, effective and development oriented public service, which is an essential element of a capable and developmental state as envisioned in the National Development Plan (NDP) 2030. In relation to the National Development Plan 2030, the Department has the following strategic priorities:

• Measures to advance women’s equality.
• Graduate recruitment scheme for the public service to attract highly skilled people.
• Realising a developmental, capable and ethical state to ensure a dignified treatment of citizens.
• Addressing unevenness in state capacity to deal with uneven performance in local, provincial and national government.
• Professionalisation of the public service in order to:

 

• Put in place the Administrative Head of the Public Service.
• Introduce a hybrid system for the appointment of Heads of Department (HoDs).
• Establish delegations of authority and principles on human resource matters.
• Address the shortage of scarce skills.
• Solve skills shortage at technical and managerial levels.
• Improve intergovernmental relations.
• Fight and eliminate corruption in the public service.
• Foster leadership and inculcate responsibility throughout society.
• Put responsibility for human resource matters on the shoulders of the HoDs.

 

1. MANDATE OF THE DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION

 

The mandate of the Department of Public Service and Administration is derived from Section 195(1) of the Constitution to implement basic values and principles that the public service should adhere to, and the Public Service Act (PSA) of 1994, as amended. In terms of the PSA, the Minister for the Public Service and Administration is responsible for establishing norms and standards relating to:

1. The functions of the public service.
2. Organisational structures and establishment of departments and other organisational and governance arrangements in the public service.
3. Labour relations, conditions of service and other employment practices for employees.
4. The Health and wellness of employees.
5. Information management.
6. Electronic government in the public service.
7. Integrity, ethics, conduct and anti-corruption; and
8. Transformation, reform, innovation and any other matter to improve the effectiveness and efficiency of the public service and its service delivery to the public.

 

5.1 Strategic Goals

 

The priorities for the Department of Public Service and Administration over the medium-term period are informed by the National Development Plan objectives, which are therefore translated into the Medium Term Strategic Framework (MTSF) 2019-2024. The Department highlighted the following priorities to the Portfolio Committee:

 

1. A stable political-administrative interface

 

Promoting stability of leadership in the top levels of bureaucracy, which is central to building a capable and developmental state by introducing clear delegations, effectively managing the political-administrative interface, improving public confidence in the process and quality of appointments.

1. A public service that is a career of choice

 

Promoting the public service as a career of choice by adopting a long-term approach to developing the skills and professional ethos that underpin a development oriented public service, recruiting young professional into the public service, ensuring that the work environment is conducive for learning to take place on the job and by adhering to the Constitutional principles that guide personnel practices.

 

1. Efficient and effective management and operations systems

 

Improving management and operations systems to challenges frontline staff face in delivering quality services to citizens by clarifying responsibilities, introducing efficient and effective work processes, including IT systems that are tailored to specific areas of service delivery and by delegating greater authority to resolve day-to-day problems.

 

1. Increased responsiveness of public servants and accountability to citizens

 

Improving accountability as set out in the Batho Pele Principles and the Public Service Charter by strengthening accountability to citizens, particularly at the point of delivery, increasing the responsiveness of public servants to the views and concern raised by citizens and other service user and by developing the capacity to monitor the quality-of-service provision and effecting the required improvements.

 

1. Improved mechanisms to promote ethical behaviour in the public

 

Improving confidence in the integrity of the public service through strengthening the fight against corruption by effecting amendments to the relevant codes of legislation in order to limit the scope for conflicts of interest, preventing public servants from doing business with the state and by building the capacity of departments to investigate issues relating to ethics, integrity and implement disciplinary actions on cases where there is a possible or actual conflict of interest.

 

 

 

1. STATE OF THE NATION ADDRESS (SONA) 2022

 

The key priorities identified in the SONA 2022 for the sector were:

 

6.1 Commission of Inquiry into State Capture and corruption

 

SONA 2022 noted that the first two parts of the report submitted by the Commission of Inquiry into State Capture have confirmed that public institutions and state-owned enterprises, such as South African Airways, Transnet, Denel, the South African Revenue Service and Government Communications, were infiltrated by a criminal network with the aim of looting public funds for private gain. It further indicated that the Commission would submit the final part of the report to the President by the end of February 2022. SONA 2022 noted Government’s commitment to addressing issues of State capture emanating from the Commission’s report. To this end, the President committed Government to submitting an action plan to respond to the Commission’s recommendations by latest end of June 2022. Revised sections of the Report were published in October 2022, followed by President Ramaphosa’s response to the Commission’s recommendations, submitted to the Executive Authority of Parliament on 22 October 2022.

 

6.2 Protection of whistle-blowers

 

Whilst SONA 2022 acknowledged the crucial role played by whistle-blowers in the fight against corruption, at substantial risk to themselves, it was mindful of the possible shortcomings in the legislative framework to ensure the safety of whistle-blowers. It thus committed Government to, through its law enforcement agencies, take the necessary steps to address this concern. This includes a review of all applicable legislation, as well as a comparative study on the protection of whistle-blowers in other jurisdictions.

 

6.3 Anti-corruption practises in the Public Service

 

SONA 2022 committed Government to introducing tighter measures for the recruitment of public servants, continuous professional development through the National School of Government and partnerships between State bodies, professional associations and universities. It also confirmed that lifestyle audits were implemented frequently to balance out the accumulation of wealth and assets and the salary structure of an employee in the Public Service.

 

7. STRATEGIC PRIORITIES OF THE DEPARTMENT

 

As the lead Department pursuant to Priority 1 of the 2019-2024 MTSF, i.e. the creation of a capable, ethical and developmental State, the Department of Public Service and Administration, in its Strategic Plan and 2022/23 Annual Performance Plan, identified the following five strategic outcomes:

 

7.1 The full implementation of the Public Management Administration Act (PAMA)

 

The Public Administration Management Act, No. 11 of 2014, seeks to provide a uniform legal framework across the three spheres of government as part of bringing some degree of commonality of purpose in key public administration areas. The Public Service Regulations of 2016, which were passed pursuant to the Act, were implemented in a phased manner. During the course of the financial year under review the Department embarked on amending the Public Service Act,1994 in order to subsequently amend the Public Management Administration Act (PAMA). Consultations were held with the Department of Cooperative Governance on the draft Public Administration Management Amendment Bill, and the Bill was developed and gazetted. The draft Bill seeks to amend the Public Administration Management Act, No. 11 of 2014. Regulations on selected areas of the Public Administration Management Act were developed to support the implementation of the Act. The PAMA has not been fully implemented because the Public Service Regulations 2016 were implemented in a phased manner since the promulgation of the Act.

 

7.2 Stabilising the Public Service

 

This policy directive is meant to regulate the issue of public service delegations between the Executive Authority (EA) and the Accounting Officer (who is either a Director-General (DG) or a Head of Department (HoD)), as well as Members of the Senior Management Service (SMS). However, stabilising the Public Service will prove challenging if the political-administrative interface is not stable. The findings from research undertaken across the public service indicate that within a legislative system that provides for discretionary delegations by Executive Authorities, the rate of compliance to public service policies remains unacceptably low. Sound public administration should not be subjected to decisions for political expedience. Therefore, there is a need for the Public Service Act to be amended to provide Heads of Department (HoDs) with original powers in respect of the organisational and human resource matters. This will also align the powers of HoDs in terms of Public Service Act and the Public Finance Management Act (PFMA).

 

7.3 Intensifying the fight against corruption

 

The following measures were undertaking as efforts to promote anti-corruption efforts in the public service:

• A database on Public Service employees appointed as board members to entities was developed and compiled. The database is one of the measures to track the activities of board members in their governance roles of public entities.
• In terms of Regulation 8 of the Public Service Regulations 2016 (PSR), the DPSA is mandated to monitor adherence to policy prohibiting public service employees conducting business with the State and to monitor the performance of other remunerative work by public service employees.
• Financial Disclosure Framework: In line with regulation 18(1) and (2) of the 2016 PSR, the e-Disclosure system was opened from 01 to 30 April 2020 to enable the Senior Management Service (SMS) members to disclose their financial interests.

 

7.4 Implementation of administrative policies

 

This policy directive was achieved through implementing, among others, the following administrative policies:

• Career Incidents of Heads of Heads of Department: The broad aim of this policy is to ensure that there is clear guidance in terms of administrative processes and management of career incidents in a meritocratic manner.
• Performance Management and Development System: The biggest challenge of the current PMDS is that it is still a paper-based manual system that requires automation. Consultation processes will be embarked on to review the PMDS towards automating it. During the financial year under review a draft project charter was developed to establish a roadmap for the review process.

 

7.5 Improved implementation of Batho Pele Principles

 

This was implemented through developing the Batho Pele Revitalization Strategy, which sought to review, modernise and renew the Batho Pele Programme to ensure improved services to the new emerging demanding citizenry.

 

1. DEPARTMENT AND ENTITIES’ PROGRAMME PERFORMANCE  

 

8.1      Department of Public Service and Administration

8.1.1   Budget Allocated and Expenditure 2022/23

 

The Department of Public Service and Administration spent R515.7 million (93.7 per cent) of its final 2022/23 budget allocation of R550.1 million as at the end of March 2023, whilst achieving 17 (65 per cent) of the 26 targets set for the year. The total expenditure on compensation of employees amounted to R277,244 million or 92.5% of the final budget of R299,744 million. The underspending of R22, 500 million or 7.5% is mainly due to 57 unfilled vacant posts throughout the department, of which 19 are SMS posts and the Minister and ministry staff.

 

The main cost drivers of the total Vote budget were: Administration (R253.4 million); due to work and consultation done to amend legislation (PAMA and the Public Service Act); Government Service Access and Improvement (R111.3 million) due to inspections and monitoring and providing quality checks on Service Delivery Improvement Plans; Negotiations, Remuneration and Labour Relations (R104.3 million) due to the advice and support provided on Labour Relations and Dispute related matters; Human Resource Management and Development (R50.4 million) due to the Occupational Classification System and other human resource related matters  and eGovernment Services and Information Management with (R30.6 million).

 

During the year under review, department did not incur any unauthorized, irregular expenditure, fruitless and wasteful expenditure. Irregular expenditure amounting to R11 782.34 was incurred in relation to a prior financial year 2021/22 was reported as such in the 2nd quarter of 2022/23 financial year. The expenditure is in relation to relocation costs incurred by the department on behalf of a newly appointed employee without the employee being required to provide a written undertaking to repay the department should the employee leave the public service in a year or less.

 

The number of posts on the establishment of the Department decreased in the 2021/2022 reporting year from 419 in 2021/2022 to 415 (excluding the Minister and Deputy Minister) and 358 of these posts were filled posts, compared to the 355 filled posts in the 2021/2022 report. The Department spent 92, 5 % of the total voted expenditure for compensation, compared to the 92.7% spent in the 2021/22 financial year. The largest percentage of personnel cost relates to the compensation of employees on salary levels 9 to 12 and higher (Senior Management), during the reporting period. The vacancy rate was at 13.73 percent in the reporting year, which was higher at the SMS Level with 21,3 percent as compared to 15.7% in the 2021/22 financial year. 

 

There were 26 posts, out of a total of 409 posts, subjected to job evaluation during the period under review. The majority of these jobs (57,69%) were on salary levels 9 - 12. The DPSA’s staff turnover rate increased from 14,2% (2021/2022) to 14,3% in the reporting year. The representativity of females at Senior Management Service level (Levels 13 - 16) increased from 44% in the 2021/2022 reporting period to 47,14% in 2022/2023, decreasing the previous deficit of 6% to 2,86% to reach the national target of 50% women on SMS level. The department met the 2% national target of employment of people living with disabilities in previous reporting periods.

 

 Table 1: Budget and expenditure summary

DESCRIPTION:  2022/23 Budget	Budget	Actual Spending	Unspent Budget	%  spent onBudget
	R'000	R'000	R'000	%
Administration	253 427	238 173	15 254	94,0%
Human Resource Management and Development	50 452	45 385	5 067	90,0%
Negotiations, Labour Relations and Remuneration Management	104 350	97 713	6 637	93,6%
E-Government Services and Information Management	30 607	25 060	5 547	81,9%
Government Service Access and Improvement	66 242	64 346	1 896	97,1%
Total	505 078	470 677	34 401	93,2%
Centre for Public Service Innovation	45 045	45 045	0	100,0%
Total	550 123	515 722	34 401	93,7%

Source: DPSA (2023)

 

1. Programme Performance

 

In its 2022/23 Annual Performance Plan, the department had 26 annual targets of which 17 were achieved as at the end of March 2023 resulting in a 65% achievement.

 

The Department has six programmes, which are as follows:

 

(a) Programme 1: Administration

 

The purpose of the programme is to manage overall strategic and operational functions of the Department which include policy direction; strategic leadership; coordination and facilitation of multilateral and bilateral programmes; integrated planning and programme support; provisioning of financial and human resource management services; security and facilities management; communication and ICT management; coordination of the provisioning of internal legal advice services, as well as , and audit and risk management oversight.

 

The programme reported expenditure of R238.1 million or 94 per cent of its 2022/23 available budget of R253.4 million as at the end of the fourth quarter of 2022/23. The main cost drivers were Corporate Services (R85.8 million), due to the transversal nature of the Department; Office Accommodation (R53.1) and the Ministry (R28.5 million), due to the legislation being developed during the period under review.

 

The programme’s expenditure is R15.3 million lower than the available budget at the end of March 2023. Lower than expected expenditure is evident mainly under compensation of employees and relates to funded vacant senior management posts. Funded vacant posts were in the process of being filled. Lower than expected expenditure is also evident under goods and services (computer services) as a result of delays in the department’s appointment of service providers for the development of the Business Continuity Management System and the refurbishment of the media conference room.

 

The programme set seven targets, five of which it achieved. The Department tabled the Public Service Amendment Bill and the Public Administration Management Amendment Bill in Parliament. In terms of employment equity, the department had achieved 2.49% representation of people with disability. Programme 1 further produced four monitoring reports on fruitless, wasteful and irregular expenditure and compiled two bi-annual monitoring reports on Compliance with the Broad-Based Black Economic Empowerment (BBBEE) prescripts.

 

The Department did not manage to meet the following two targets; 50 per cent representation of women in SMS positions. As at 31 March 2023, the representation of women at SMS was 47,14 per cent, which is 2,86 per cent less than the set national target. Furthermore, 30 per cent representation of Youth. As at 31 March 2023, Youth constituted 16,45 per cent of staff, which is 13,55 per cent less than the set national target.

 

 (b) Programme 2: Human Resource Management and Development

 

The main purpose of the programme is to manages, oversees and facilitates human resource planning, (norms and standards). Facilitate compliance with the minimum norms and standards set by the Minister for Public Service and Administration in line with section 16 of the Public Administration Management Act, 1994 through the Office of Standards and Compliance.

 

The programme reported actual expenditure of R45.3 million (90 per cent) of its 2022/23 budget allocation of R50.4 million as at the end of March 2023, whilst only achieving one (33%) of the three targets set for the year. The programme’s expenditure is R5.1 million lower than the available budget at the end of March 2023. Lower than expected expenditure is mainly evident under compensation of employees and relates to funded vacant senior management posts. Funded vacant posts were in the process of being filled.  

 

The programme only managed to meet one of the three set targets, namely annual Compliance Monitoring Report on selected Public Administration Norms and Standards was submitted for approval. The programme was unable to achieve the following targets Human Resource Management and Development (HRM&D) strategy and implementation plan. The HRM&D project leader was on secondment, which could not be extended when the secondment period ended at the beginning of the 3rd quarter. Job Competency Framework for public sector. There were capacity challenges, which impacted on the development of the Framework.

 

 (c) Programme 3: Negotiations, Labour Relations and Remuneration Management

 

Programme 3: Negotiations, Labour Relations and Remuneration Management was formerly known as Public Service Employment and Conditions of Service. The function of the programme is to manage, oversee and facilitate organisational development, job grading, macro-organisation, remuneration, human resource information systems, conditions of service, labour relations and dispute management in the public service. It also administers the implementation of the Government Employees Housing Scheme and the macro-organisation of the State, and ensures coordinated collective bargaining.

 

The programme spent R97.7 million (93.6 per cent) of its 2022/23 budget allocation of R104.3 million as at the end of March 2023. The programme’s expenditure is R6.6 million lower than the available budget at the end of March 2023. Lower than expected expenditure is mainly evident under compensation of employees, and results from funded vacant senior management posts. Funded vacant posts were in the process of being filled.

 

The Programme set six targets, five (83 per cent) of which were achieved. The DPSA Collective bargaining policy was developed, and the procedures were reviewed. The Reviewed generic functional structure for Programme 1: Administration Functions was submitted for approval. The Personnel Expenditure Review (PER) report was finalised in consultation with stakeholders and the final report was submitted for approval. The Discipline Management Strategy was approved. All the Justice, Crime Prevention and Security Cluster (JCPS) departments were supported to implement the Lifestyle Audits.

 

The target not achieved was the final report for the Job Evaluation System which was not submitted for approval. The initial procurement process could not secure an appropriate service provider.

 

(d) Programme 4: e-Government Service and Information Management

 

The function of Programme 4: e-Government Services and Information Management

(formerly known as Government Chief Information Officer) is to manage, oversee and facilitate ICT governance, e‐enablement, ICT infrastructure, information and knowledge management, and innovation in the public service and coordinate and facilitate ICT stakeholder management. Information and Communication Technology (ICT) is playing an ever-increasing role as a strategic enabler of public service delivery.

 

This programme spent R25.0 million (81.9 per cent) of its 2022/23 total available budget of R30.6 million as at the end of March 2023. The programme’s expenditure is R5.5 million lower than the available budget at the end of March 2023.  Lower than expected expenditure is evident under compensation of employees and is caused by funded vacant posts. Funded vacant posts were in the process of being filled.

 

Lower than expected expenditure is also evident under goods and services (consultants: business and advisory services and travel and subsistence) and arises from delays in the Department’s receipt of invoices from service providers and cost reductions pertaining to the department’s decision to conduct the Government Information Technology Officer’s Council meetings and workshops virtually rather than face‐to‐face.

 

The Programme set three targets, none (0 per cent) of which were achieved. The targets not achieved were the Digital Government Policy Framework for the Public Service. The Digital Government Policy Framework was developed and consulted on in the GSCID Cluster. The intention of the policy framework is to improve coordination between the various role-players within the space of e-government (Digital Government) in the public service. The Policy Framework for the Public Service was supposed to be approved by March 2023, which is the month when the Minister was appointed. The Framework would first be presented to the Minister for decision-making. The Digital Service Standard was supposed to be approved by March 2023, which is the month when the Minister was appointed. The Public Service Data and Information Management Directive was not approved. The Directive was supposed to be approved by March 2023, which is the month when the Minister was appointed.

(e) Programme 5: Government Services Access and Improvement

 

Programme 5: Government Service Access and Improvement (formerly known as the Service Delivery Support Programme) manages and facilitates the improvement of service delivery in Government. The programme reported a total budget of R66.2 million as at the end of March 2023. The Department spent R64.3 million (97.1 per cent). The programme’s expenditure is R1.9 million lower than the available budget at the end of March 2023. Lower than expected expenditure is mainly evident under compensation of employees and emanates from funded vacant senior management posts. Funded vacant posts were in the process of being filled.

 

The Programme achieved all six (100 per cent) of its annual targets which include the African Peer Review Mechanism (APRM): National Plan of Action was approved and submitted to Cabinet. Departments complied with Service Delivery Improvement Plans (SDIP) building blocks and capacity building provided in 10 sectors. The Research Study on the State of Public Service Delivery was approved. The Organisational Functionality Assessment Framework was institutionalised in the public service. Implementation of the Business Processes Modernisation Programme (BPM) was implemented in three partner departments. A report was compiled on the 10 sector-focused sessions conducted to support departments on the implementation of the Batho Pele Programme.

 

1. CENTRE FOR PUBLIC SERVICE INNOVATION

 

The Centre for Public Service Innovation (CPSI) is an entity of the Ministry for the Public Service and Administration established to entrench and drive service delivery innovation across all sectors. Chapter 3 of the National Development Plan (NDP) states that “Innovation across state, business and social sectors should start to become pervasive”. The NDP stipulates that innovation should also focus on improved public service delivery and on goods and services aimed at low-income sectors.

 

The CPSI is bridging the gap between the world of science and technology driven by the National System of Innovation led by the Department of Science and Technology. The National System of Innovation includes entities such as National Advisory Council on Innovation (NACI), the Innovation Hub and the Technology Innovation Agency (TIA). The CPSI’s Strategic Plan is aligned to the Government priority outcomes.

 

Table 2: CPSI 2022/23 expenditure per programme

2022/23				2021/22
Programme	Final Appropriation R’000	Actual Expenditure R’000	(Over)/Under Expenditure R’000	Final Appropriation R’000	Actual Expenditure R’000	Over)/Under Expenditure R’000
Administration	24 116	20 426	3 690	20 149	16 963	3 186
Public Sector Innovation	20 929	20 100	829	21 304	16 817	4 487
TOTAL	45 045	40 526	4 519	41 453	33 780	7 673

Source: CPSI (2023)

 

The final expenditure for the period 1 April 2022 to 31 March 2023 amounted to R40.5 million (89.96 per cent) of the final appropriation of R45.0 million for the year. This translates into under-expenditure of R4.5 million (10 per cent). The Centre managed to achieve 14 of its 16 set targets, which translates into an 87.5 per cent achievement. The Centre organises its expenditure under two programmes, namely Programme 1: Administration, and Programme 2: Public Sector Innovation.

 

An amount of R20.651 million (82.40 percent) was spent on Compensation of Employees against the final appropriation of R25.077 million. The underspending of R4.426 million (17.60 percent) was mainly due to vacant posts in the department. The Executive Director and Human Resource Clerk posts are currently in the process of being filled. During the period under review, the CPSI had one incident of irregular expenditure amounting to R231 918.76. The irregular expenditure relates to VOIP and connectivity services, which could not be discontinued without having a significant negative impact on the organisation’s capacity to maintain access to the transversal system managed by SITA.

 

The number of positions on the establishment of the CPSI increased during the 2022/23 reporting year from 32 to 33 posts. 30 of these posts were filled as of 31 March 2023, which is the same number of posts that were filled in the previous reporting period. Additional to the fixed establishment, two persons were employed, one as a Systems developer and one in the Intern Programme. The organisations had three vacant posts at the end of the reporting, namely the Executive Director, the Human Resource Clerk and an Intern position, respectively.

 

1. Programme 1: Administration

 

This programme provides strategic leadership, overall management and support to the organisation. The programme achieved its targets set for the financial year as follows; unqualified audit opinion on financial and non-financial information for the 2022/23 financial year. Vacancy rate was at 9.1 per cent, including the Executive Director; an HRM Officer; and an Intern. Employment equity statistics at the end of the financial year are represented by 60 per cent female employees; 60 per cent women at SMS level; and 10 per cent youth.

 

1.   Programme 2: Public Sector Innovation

 

This programme drives service delivery innovation in the public sector in line with Government priorities. The programme set three targets and all were achieved which were as follows: four innovation research and development initiatives undertaken. Eleven knowledge platforms sustained to nurture an enabling environment for innovation in the public sector. The target was 9 knowledge platforms and two innovative solutions replicated in the public sector.

 

Two targets that were not met include Design Thinking and Innovation Workshop for the Waterberg District as part of CPSI’s contribution to the District Development Model. An additional participation in International Programmes at Community of Experts in Public Administration (CEPA) 2023.

 

1. AUDITOR-GENERAL OUTCOMES

 

10.1 Audit Opinion

 

The Auditor-General audited the financial statements of the Department of Public Service and Administration set out on pages 100 to 130 which comprise the appropriation statement, statement of financial position as at 31 March 2023. The Department’s financial performance, statement of changes in net assets and cash flow statement for the year ended, as well as notes to the financial statements, including a summary of significant accounting policies.

 

The Auditor-General further reported that financial statements present fairly, in material respects, the financial position for the Centre for Public Service Innovation as at 31 March 2023, and its financial performance and cash flows for the year then ended in accordance with the Modified Cash Standard (MCS), as prescribed by the National Treasury and the requirements of the Public Finance Management Act 1 of 1999 (PFMA).

 

10. 2 Compliance with legislation

 

In accordance with the PAA and the general notice issued in terms thereof, Auditor-General have a responsibility to report material findings on the compliance of the Department with specific matters in key legislation. Auditor-General performed procedures to identity findings but not to gather evidence to express assurance.  The AG did not identify any material findings on the reported performance information for the selected material performance indicators.  

 

10.3 Internal control

 

The Auditor General considered internal control to the audit of the financial statements, reported performance information and compliance with applicable legislation. However, the AG objective was not to express any form of assurance on it.  The AG did not identify any significant deficiencies in internal control.

 

1. OBSERVATIONS AND KEY FINDINGS

 

The Committee made the following observations:

 

1. The Committee notes that the Department of Public Service and Administration received unqualified audit with findings in the 2022/23 financial year. The Department regressed from maintaining a clean audit, which was a concern to the Committee, which expects strong leadership with regard to governance matters. The Department had 26 annual targets of which 17 were achieved as at the end of March 2023 resulting into a 65% achievement.

  

1. The Committee notes the contribution of Centre for Public Service Innovation for receiving and maintaining a clean audit for the 2022/23 financial year. The Centre managed to achieve 14 of its 16 set targets, which translates into 87.5 per cent achievement.  

 

1. The Committee notes the progress made thus far with regards to developments towards amending the Public Service Act of 1994, which among others, seeks to transfer powers of the human resource management from the Executive Authority to the Accounting Officers. The Committee has prioritised the finalisation of the Public Service Amendment Bill as tabled in Parliament for further processing.    

 

1. The Committee notes the progress made thus far with amendment of the Public Administration Management Act (PAMA), which intends to accelerate the implementation and improvement of service delivery. The PAMA Bill also seeks to eliminate fragmented approach to development and to strengthen coordination across the public sector. The Committee has prioritised the finalisation of the Public Administration Management Amendment Bill as tabled in Parliament for further processing.

 

1. Non-achievement of all three set targets in Programme 4: e-Government Service and Information Management with 85% budget spent was a great concern to the Committee. Among targets not achieved include the Digital Government Policy Framework for the Public Service. The Digital Government Policy Framework, which was developed and consulted on in the Governance, State Capacity and Institutional Development (GSCID) Cluster. The intention of the policy framework is to improve coordination between the various role-players within the space of e-government (Digital Government) in the public service. The Policy Framework for the Public Service was supposed to be approved by March 2023, which was the month when the Minister was appointed. There is an urgent need to enhance the in-year monitoring by the Accounting Officer and the Executive Authority such that the corrective action is taken in a timely manner to ensure achievement of planned targets and indicators.

 

1. The Committee notes the gazetting of the National Framework Towards Professionalising the Public Sector as another step to institutionalise and implement the framework across the organs of state. Despite all the progress made in relation to the framework, the Committee was of the firm view that the DPSA and NSG have to develop the implementation and monitoring plan on the National Framework. The Implementation and Monitoring Plan of the National Framework would provide immediate information on the efficacy of policy and would allow the Department and the NSG to adjust the framework as it gets implemented.

 

1. The Committee notes the developments regarding the fight against corruption wherein the Department had partnership with Fusion Centre partners – the Special Investigations Unit (SIU), the South African Police Service (SAPS) and the National Prosecuting Authority (NPA). Efforts to prevent public servants from conducting business with state are highly appreciated, however, the Committee encourages the Department to enforce the provision of the Public Service Act, which prohibits public servants from conducting business with any organs of state. The provision of the Act is clear and is never intended to reduce the numbers of non-compliance, but to prohibit altogether public servants from doing business with any organ of state.

 

1. Progress is noted pertaining to the implementation of the Guide to Implement Lifestyle Audits aimed at preventing and detecting fraud and corruption in the public service by the Public Administration Ethics, Integrity and Disciplinary Technical Assistance Unit (PAEIDTAU). The Committee was concerned that only 24 national departments and 71 provincial departments indicated that they performed lifestyle reviews or were in the process of finalising them. Decentralisation of the lifestyle audit function to departments does not mean that the Department has to relinquish its responsibility of monitoring its policies.

 

1. The Committee further notes the efforts made by the Department in improving the management of discipline within the public service, with the intention to establish a panel to assess long-drawn precautionary suspensions involving SMS and to advise on the way forward. Centralisation of the disciplinary management under the DPSA could be welcomed once the Strategy is approved and legislative amendment is aligned with the new strategy. The Committee will continue to monitor the implementation of the disciplinary procedures in the public service.

 

1. Digital transformation to new technologies to transform Business Process Modernisation by replacing manual or non-digital processes with digital technologies is becoming the norm. The Committee observes that the Department is maximising its efforts of digitising government business model with an aim of improving efficiency and saving time to render services. 

 

1. The Committee notes a need for collaboration or even a Memorandum of Agreement between the Department and the Department of Communication and Digital Technologies, as well as SITA, to strengthen government’s ICT efforts towards e-Government.       

 

1. The Committee further commends the Department for not incurring unauthorised, irregular, fruitless and wasteful expenditure in the 2022/23 financial year. The Committee notes that the level of irregular, fruitless and wasteful expenditure is diminishing, and this indicates that internal controls are gradually improving to prevent and detect material non-compliance.

 

1. The Department is improving slowly on gender representation of females at SMS level from 44% in 2021/22 to 47.14% in the 2022/23 financial year. The Committee encourages the Department to swiftly address gender equity targets when filling funded vacancies for the SMS.
2. The Committee is seriously concerned about regression issues on internal controls and targets not being listed in the Annual Performance Plan for proper measurement of delivery and auditing. Compliance on core mandate gets affected if targets are not properly articulated and service delivery gets affected too. In light of the Auditor-General’s audit findings, the Department and the Centre for Public Service Innovation are encouraged to maintain sound internal controls, which would lead to both institutions obtaining clean audit outcomes.

 

Centre for Public Service Innovation

 

1. The Committee notes the efficacy of the innovation projects and outcomes within the Centre and the public service. The Digital Fingerprint Identification Project was one of the initiatives being replicated to assist in the identification of bodies of deceased persons in government mortuaries.  The Committee is pleased that the CPSI innovation projects are yielding positive results in the public service.

 

1. The Committee notes that the vacancy for the Executive Director still exists.

 

1.  The Committee welcomed efforts made by the CPSI to unearth numerous digitisation solutions through the Annual Public Sector Innovation Awards Programme, including innovative solutions to human resource business operations. 

 

1. The Committee notes the need for software and systems developers, business analysts, UX designers and project managers at the CPSI.  

 

1. RECOMMENDATIONS

 

The following recommendations are proposed:

 

1. The Department should move with speed towards the approval of the Digital Government Policy Framework for the Public Service to improve coordination between the various role-players within the space of e-government (Digital Government) in the public service. E-Government plays a major role in bringing service closer to the people with immediacy and without costs.

 

1. The Accounting Officer has to develop and implement an action plan that is root cause-focused to address the regression in the Department on performance reporting. Furthermore, the Accounting Officer must ensure that progress on the achievement of the MTSF targets are constantly monitored and corrective actions are put in place, with in-year reporting, where the portfolio is behind.

 

1. The Department together with the Department of Communications and Digital Technologies (DCDT) should identify overall strategic direction for government ICT efforts through collaboration and Memorandum of Agreement. This should be done in consultation with SITA.

 

1. The Department of Public Service and Administration in collaboration with the National School of Government should develop an Implementation Strategy and Monitoring Framework towards Professionalising the Public Sector. The Department together with the School should present the draft Implementation Strategy and Monitoring Framework for the National Framework by the end of May 2024 to the Committee. The strategy should indicate different roles and responsibilities per institution to monitor and measure compliance. The PSC should also be apprised on the process because it is going to have a major role in the recruitment of suitable public servants moving forward per the proposed legislation.

 

1. The Department in collaboration with the National School of Government, as recommended by the Auditor-General, should include key performance indicators and strategic targets for the National Framework towards Professionalising the Public Sector as a way of ensuring a successful implementation of the framework. To closely monitor the implementation of the framework there needs to be timeframes for each area of performance and the report to be submitted to Parliament twice in a year by the Department and the NSG, and also from the PSC on how it assessed progress and impact of the framework.

 

1. The Department in collaboration with the School should ensure that the provisions of the National Framework towards Professionalising of the Public Sector are incorporated into the Public Service Amendment Bill and Public Administration Management Amendment Bill.

 

1. The Department should enforce provisions on the prohibition of public servants doing business with the state, as the Public Administration Management Act is clear with its intention. An era of celebrating reduction of prohibition of public servants from doing business with the state should come to an end as the provision was enacted into law in 2014 already. The Department in collaboration with the National Treasury should ensure that all public servants are prohibited from doing business with the state through strengthening the loopholes in the system.

 

1. As much as the Committee understands that the Department of Public Service and Administration develops norms and standards, through the Executive Authority, and that the implementation of such is decentralised, the Department should ensure enforceability of the policies through effective monitoring and evaluation practices. The Department should develop a monitoring tool [similar to Management Performance Assessment Tool (MPAT)] that measures most of its policies and circulars across the public service. Such an inventory of auditable policies would indicate whether or not there is progress.

 

1. The Department should consistently monitor and review lifestyle audits as departments implement the Guidelines. The Department should provide timeframes for completion of lifestyle audits to all accounting officers as part of the rollout strategy and to ensure uniformity across the public service. As much as some investigations have been outsourced to the SIU, the Department still has the accounting role on this responsibility since it designs norms and standards on compliance.

 

1. The Department should centralise the management of the disciplinary cases in instances where departments are unable to conclude the cases within the set period of 90 days. This will ensure that non-compliant departments honour this responsibility. Such departments’ accounting officers must be reported to the Minister, who must cascade the record to the relevant Executive Authority. Also, at the level of FOSAD, the Accounting Officer of DPSA should report on this anomaly. A revised disciplinary management strategy has to be presented to the Committee in a template form devised by both the DPSA and the PSC to monitor whether or not progress is being made in transforming the discipline management process. The template should state the offence, the period and the intervention, and other relevant facts.

 

 

1. The Department should provide timeframes and methodology to be used with regards to the implementation of Integrity Assessment mentioned in the SONA by the President. If there is a need to collaborate with the PSC in this regard, that should be the way to go.

 

1. The Department together with the Department of Planning, Monitoring and Evaluation should review the Policy on Performance Management Development System for the DGs and HoDs in the public service, per the Auditor-General’s recommendation. Both departments should review matters identified in the PMDS policy such as weight given to Key Responsibility Areas and Acting DGs/HoDs to be included in the PMDS for performance measurement, especially when acting for more than six months. Accountability is not shed where the acting person performs in the vacancy, except in the absence of the incumbent as a result of normal leave or sick leave.

 

1.  

 

1. The Department and the Ministry must speed up the permanent appointment of the Executive Director at the Centre for Public Service Innovation. The Department should report on the progress with regards to such an appointment by March 2024.  

 

1. The Centre for Public Service Innovation should ensure that all successful innovation projects aimed at resolving service delivery challenges are replicated in other provinces. The Offices of the Premier should be apprised on new innovative solutions to assist towards service delivery challenges in their respective provinces. 

 

1. The CPSI, through the Department’s Accounting Officer, should engage the National Treasury regarding the urgent need to employ software and systems developers, business analysts, UX designers and project managers capable of managing agile solution development to improve service delivery.

 

1. The CPSI must continue developing innovative solutions to improve e-government services, especially with regard to human resource business operations, such as e-Leave, e-Recruitment and e-Performance Management solutions.

 

 

13.  CONCLUSION

 

The Department of Public Service and Administration has in the 2022/23 financial year continued to implement and coordinate interventions aimed at achieving an efficient, effective and development-oriented public service, which is an essential element of a capable and developmental state. The Committee was concerned about regression on audit outcomes and the inability to achieve targets in Programme 4: e-Government, as much as they needed to apprise the newly appointed Minister. The Department left the process for approval of e-Government unattended until it was too late, since there was an Acting Minister when such policies were developed. Identified human resource needs at the Centre for Public Service Innovation must be prioritized, including the filling of the Executive Director’s post. In order to build an efficient, capable, and ethical state that is free of corruption, and committed to improving citizens' lives, the professionalisation framework addresses key principles that, if properly and intentionally planned and coordinated, will lead to a reformed and professional public sector across all three spheres of government. The Department and the CPSI must maintain sound internal controls for future financial years and lead by example.

 

Report to be considered.