ATC141030: Budgetary Review and Recommendations Report (BRRR) for the: Department of Public Service and Administration (DPSA), Public Service Commission (PSC), National School of Government (NSG) and Centre for Public Service Innovation (CPSI), dated 22 October 2014

Public Service and Administration

BUDGETARY REVIEW AND RECOMMENDATIONS REPORT (BRRR) FOR THE: DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION (DPSA), PUBLIC SERVICE COMMISSION (PSC), NATIONAL SCHOOL OF GOVERNMENT (NSG) AND CENTRE FOR PUBLIC SERVICE INNOVATION (CPSI), DATED 22 OCTOBER 2014

The Portfolio Committee on Public Service and Administration as well Monitoring and Evaluation (the Committee), having assessed the performance of the Department of Public Service and Administration, Public Service Commission and its entities, report 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 as well as Monitoring and Evaluation are as follows:

  • participate and provide strategic direction in the development of the legislation and thereafter passes the laws;

· Conduct oversight over the Executive to ensure accountability to Portfolio Committee towards achieving an effective, efficient, developmental and professional public service;

  • Conduct public participation and engage citizens regularly with the aim to strengthen service delivery; oversee and review all matters of public interest relating to the public sector;
  • Monitor the financial and non-financial aspects of departments and its entities and ensure regular reporting to the Committee, within the scope of accountability and transparency;
  • Support and ensure implementation of the Public Service Commission (PSC) recommendations in the entire public service
  • Participate in the international treaties which impact on the work of the Committee.

2. PURPOSEOF THE BUDGETARY REVIEW AND RECOMMENDATIONS REPORT

In terms of Section 5 of theMoney Bills Amendment Procedures and Related Matters Act, No. 9 of 2009 the National Assembly, through its Committees, must annually compile Budgetary Review and Recommendation reports (BRRR) that assess 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.

2.1 Method

The Portfolio Committee on Public Service and Administration as well as Monitoring and Evaluation compiled the 2013/14 BRRR using the following documents:

· The National Development Plan: Vision for 2030.

· Medium Term Strategic Framework.

· 2013 State of the Nation Address.

· Management Performance Assessment Tool 2013

· Strategic Plans of the Department of DPSA and its entities.

· Annual Performance Plans of the Department of DPSA, PSC and its entities 2014/15.

· 2013/14 Annual Report of the Department of DPSA, PSC and its entities.

· 2013/14 Auditor-General South Africa outcomes of audit findings.

3. NATIONAL DEVELOPMENT PLAN VISION 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:

ü Put in place the Administrative Head of the Public Service.

ü Introduce a hybrid system for the appointment of Heads of Department (HoDs).

ü Establish delegations of authority and principles on human resource matters.

ü Address the shortage of scarce skills.

ü Solve skills shortage at technical and managerial levels.

ü Improve intergovernmental relations.

ü Fight and eliminate corruption in the public service.

ü Foster leadership and inculcate responsibility throughout society.

ü Put responsibility for human resource matters on the shoulders of the HoDs.

4. MANDATE OF THE DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION

The mandate of the Department of Public Service and Administration is to implement basic values and principles enshrined in Section 195(1) of the Constitution of the Republic and in the Public Service Act of 1994. Therefore, the mandate is to

  • Transform and modernise the public service.
  • Oversee changes to the structure of the public service.
  • Improve the effectiveness and efficiency of the public service and its service delivery to the public.
  • Establish norms and standards for human resources management and development, conditions of service, labour relations, IT and service delivery.
  • Issue directives and regulations for the public service.
  • Formulate the national anti-corruption strategy.

4.1 Strategic Outcome Oriented Goals

The Department had five strategic outcome oriented goals over five year period (2009-2015) which contributed to the overall mandate, vision and mission which are as follows:

Strategic outcome oriented Goal 1: An efficient and effective Public Service and Administration

The areas of duplication, weaknesses and wastage within the public service and administration are identified and appropriate interventions to address these are implemented which will include: ensuring that the organisational structures of departments are rationalised and aligned to their mandates, improving the effective management of discipline and improving the implementation of resolutions signed with labour through the PSCBC collective agreements.

Strategic outcome oriented Goal 2: A capable, Equitable and Professional Public Service and Administration

Measures to professionalise the public service are introduced which will include, amongst others, compulsory training programmes and the review and enhancement appointment for senior managers.

Strategic outcome oriented Goal 3: Appropriate legislative framework Public Service and Administration

The enabling environment for effective public administration is strengthened by reviewing existing legislation and introducing new legislative for public service and administration.

Strategic outcome oriented Goal 4: An ethical and clean Public Service and Administration

A corruption-free public administration is promoted through the implementation of practical interventions to prevent, detect and combat corruption. The promotion of the ethical behaviour of public servants is re-enforced through improving compliance to public administration prescripts and regulations.

Strategic outcome oriented Goal 5: Improved public administration in Africa and internationally

The department contributes towards improved public service and administration in Africa and internationally through entering into mutually beneficial partnerships, dialogue and promotion of best practices.

5. ANALYSIS OF SECTION 32 EXPENDITURE REPORT

In response to the matters raised by the Portfolio Committee during the Budgetary Review and Recommendations Report 2012/13. The National Treasury responded to the Parliament concerned about the management and administrative instability that occur when the executive responsibility moves from one department to other, as this compromise financial and administrative accountability. The National Treasury had raised these concerns and is engaging with the department on the most appropriate mechanisms for resolving the resultant financial management challenges.

The Committee requested the National School of Government (formerly known as PALAMA) to present a clear organogram, costing analysis, offerings tailor-made for the revised mandate. The National Treasury indicated that the School had not yet submitted its strategic plan and annual performance plan for 2014/15 to the Department of Planning Monitoring and Evaluation. The National Treasury is engaging with relevant officials in the NSG providing advice on the appropriate business and funding models for the new school.

The Committee recommended that the National Treasury should reasonably increase the budget of the Public Service Commission (PSC) over the medium term to accommodate the extended mandate of all spheres of government. In response to that the National Treasury indicated that a total of R26.2 million is added to the PSC’s budget over the 2014 Medium-Term Expenditure Framework period to enhance capacity.

6. MANAGEMENT PERFORMANCE ASSESSMENT TOOL 2013

Management Performance Assessment Tool (MPAT) results (2013) are aligned with the performance of the annual report 2013/14 financial year. The Committee can use the results to strike the balance between audit outcomes and MPAT. A statistical analysis was conducted on how the MPAT standards relate to each other and to various independent measures such as AGSA audit results. There is a strong correlation on the MPAT scores and the achievement of annual targets of the department.

The standard relating to planning and monitoring, integrity, risk management, organisational design, human resource planning, performance management and management of unauthorised expenditure had strong relationship to the achievement of annual targets. An analysis also showed that that the standards of financial and human resource management directly influence a department’s achievement of annual targets.

In terms of MPAT score for the DPSA, the department had performed fairly well in performance assessment tool with few level 1 scores.The Committee expected the department to take a lead in complying with management practices as it vestedwith responsibility of promoting the basic values and principles of the Constitution. The MPAT result highlighted the areas of improvement which are; Service Delivery Improvement Plan, Promotion of Access to Information Act, professional ethics, fraud prevention, health and wellness, and discipline cases.

The MPAT highlighted improvement areas that the Public Service Commission had to work towards improving which are Service Delivery Improvement Plan, delegation of responsibilities in terms of PFMA, management diversity and health and wellness programme. MPAT report highlightedareas that NSG had to improve in complying which are as follows; Service Delivery Improvement Plan, Promotion of AccesstoInformation Act, organizational design, pay sheet certification, management diversity and implementation of SMS performance management system.

7. DEPARTMENT AND ENTITIES PROGRAMMES PERFORMANCE

7.1 DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION

7.1.1 Budget Allocated and Expenditure 2013/14

In 2013/14, the Department of Public Service and Administration received an appropriation of R829.7 million which represents a nominal increase of R102.9 million, or 14.1 per cent, from 2012/13. Transfers and Subsidies account for R358.4 million of the available budget and of this amount the Department had transferred R358.2 million, or 100 per cent, mainly to departmental agencies and accounts. R0.2 million of the budget was for payments for financial assets, of which the Department spent R0.2 million. This means the Department had an available budget of R471.2 million for operations. Of this, the Department had spent R450.7 million, or 95.7 per cent, the majority of which has been used on compensation of employees and goods and services.

Appropriation per programme (R’000)

Programme R’000

Final appropriation

Shifting of funds

Virements

Expenditure

Variance

Prog 1: Admin

201.161

(3.694)

7.847

210.349

(8.812)

Prog 2: HRMD

39.690

(3)

(3.405)

39.286

404

Prog 3: LRRM

49.860

(151)

(3.121)

28.578

21.482

Prog 4: PSICTM

33.359

(10)

(2.848)

25.773

7.586

Prog 5: SDOT

231.570

(544)

(2.454)

231.553

17

Prog 6: GIR

273.903

(61)

3.760

273.752

151

Total

829.731

-

-

809.103

20.628

7.1.2 Programme Performance

(a) Programme 1: Administration

The purpose of theprogramme is to provide coordinated strategic and administrative support services to enable the Ministry and the Department to deliver on mandates. There are three sub-programmes under this programme which are Ministry, Office of the Director General and Cooperate Services. The programme was allocated a final appropriation of R201 349 million and the overall expenditure was R210 161 million.There was over spending of R8 812 million.

The Department had prepared, developed and conducted consultations on the PAM Bill. The department had developed and approvedthree-year strategic internal audit plan for 2013/2015. A 99 per cent of the projects planned were completed concerning risk management. The department tabled 2013/15 Strategic Plan and the 2013/14 Annual Performance Plan on 17 March 2013.The department had conducted awareness campaigns to promote the Public Service Charter and the 3 rd African Peer Review Mechanism (APRM) Report for the 2013/14 financial year. The Revised Public Service Regulations were sent to the Minister byendof March 2014.

(b)Programme 2: Human Resource Management and Development

The purpose of theprogramme is to develop and implement an integrated strategy to monitor employment practices, conduct human resource planning and diversity management and to improve the health and well-being of public service employees. There are six sub-programmes under the programme which are Senior Management Services, Human Resource Planning, Performance and Practices, Diversity Management, Employee Health and Wellness, Integrated Financial Management System and Human Resource Development.

The programme was allocated a final appropriation of R39 690 million and had spent R39 286 million, which is an estimated 99%. This is a positive outcome because it is an indication that what the programme set out to do was realised.

The Department had stabilised the vacancy rate in the public service to below 10%. The Department had developed 500 reports on skills gap analysis and sent back to those departments with a directive to draw up plans to mitigate risks. A revised Performance Management and Development System (PMDS) was developed in order to align assessments of HoDs with institutional performance.The strategy on the Management of Poor Performance for senior managers was developed and approved in order to formulate a consequences procedure on senior managers. The strategy was communicated to all departments by 20 May 2013. Employment equity target of 2% for people with disabilities was met by 22 departments, and the 50/50 split on management positions was met by only 18 departments. The Departments are falling short in these two aspects. The DPSA have developed remedial actions to address the situation.

(c) Programme 3: Labour Relations and Remuneration

The purpose of the programme is to develop and implement compensation policies and guidelines for the public sector. It also ensures coordinated bargaining and effective programme management for the establishment of the single public service. The programme was allocated a final appropriation of R49 860 million and had spent R28 578 million, which is an estimated 57.3%. This is not a positive outcome and it indicates that the programme had severe underspending.

The department tabled t he Draft Revised Disciplinary Code and Procedure in the Public Service Coordinating Bargaining Chamber in September 2013 . The Department signed the Public Service Charter as the employer withorganisedlabour in August 2013. The Department further carried out President mandate in establishing the Presidential Remuneration Review Commission in order to investigate remuneration benchmarks and conditions of service in the public service and public entities. The remuneration of educators and their job evaluation, grading, promotion and performance management are a major priority of the Commission. The Commission was established very late which resulted into budget under the programme not well spent.

(d)Programme 4: Public Sector and Communication Technology Management

The purpose of this programme is to promote and manage the use of ICT’s in the design and delivery of citizen-centred services and to ensure that IT services support the continual improvement in the cost, quality, access, responsiveness and speed of service delivery to citizens, business and stakeholders. The programme was allocated a final appropriation of R33 359 million and had spent R25 773 million, which is an estimated 77.2%. This is relatively a positive outcome.

The department connected two additional Thusong Service Centres with the wireless technology in Limpopo. An expenditure review was conducted in order to adopt information technology (IT) as a tool for service delivery. An e-government policy framework was developed and consultations held with Government IT Officers for Ministerial approval in March 2014.

(e)Programme 5: Service Delivery and Organisational Transformation

The purpose of this programme is to promote a service delivery and organisational transformation framework and engage in interventions and partnerships to promote efficient and effective service delivery. The programme was allocated a final appropriation of R231 570 million and had spent R231 553 million, which is an estimated 99.9%. This is a positive outcome indicating that what the programme set out to do was successfully realised.

The Department helped towards improvement of response levels regarding waiting and turnaround times at the Departments of Labour, Home Affairs and SASSA. 70 departments were assisted towards implementation of service delivery planning strategies through workshops. Toolkits on unit costing and setting of service charters were revised and approved. Workshops on these were held with Departments of Education (learner support material); Health (dispensing of pharmaceuticals); Human Settlements (cost breakdown on a subsidised house); Home Affairs (issuing of an identity document) and SASSA (payment of a social grant).

The rate of Service Delivery Improvement Plans (SDIPs) has improved by 7% from 78% to 85% within a cycle of 2012/15 compared to the 2009/12 cycle. Verbal and written feedback was given on the quality of and compliance with SDIPs at both national and provincial levels. 123 out of 127 departments received their feedback. The Delegations Framework was approved by Cabinet and was issued as a Directive.

(f)Programme 6: Governance and International Relations

The Department drives this programme to improve governance and public administration for enhanced service delivery through integrated public service,fighting corruption, monitoring and evaluation as well as advancing the public service agenda at national, regional andinternational levels. The programme was allocated a final appropriation of R273 903 million and had spent R273 752 million.

The department conducted Citizen Report Card Survey in some municipalities to assess citizen satisfaction in the sectors of Education; Health; South African Police Service; SASSA and Home Affairs. Furthermore the department reviewed and piloted the Employee Satisfaction Survey in Gauteng and Mpumalanga Provinces.The Public Service Anti-Corruption Unit investigated 5 cases and 11 referred to other agencies or relevant departments. The department provided support to and monitoring the abolition of vacant posts on the PERSAL which helped towards reducing the national vacancy rate to 10%.

7.2 PUBLIC SERVICE COMMISSION

The PSC derives its mandate from Sections 195 and 196 of the Constitution, 1996. Section 195 sets out the values and principles governing public administration, which should be promoted by the PSC. The Public Service Commission (PSC) gets its budget through transfer of budget vote 12 of the Department of Public Service and Administration. The final appropriated budget for the PSC was R201 140 million had spent R200 945 million which is an estimated as 99.9%.

The PSC had achieved most of its performance targets and they have produced a lot of invaluable reports which assist in the oversight over the Executive by Parliament. The PSC has done great work over the years to date to make Parliament aware of the challenges concerning service delivery in the public service.

The PSC had a shortfall of R15 million and R2 million in its baseline allocation for the 2014/15 and 2016/17 financial years. The shortfall resulted from the additional funding that the PSC received during the 2013 budget allocation. There was a short fall in the budget of R7.7 million in the outer year (2015/16). The Portfolio Committee would engage with the National Treasury and Standing Committee on Appropriation to address the shortfall of to enable the PSC to fully carry outits mandate.

7.2.1 Programme Performance

(a) Programme 1: Administration

The main aim of this sub-programme is to provide overall management of the PSC and its Office.The activities of this sub-programme are structured to meet the following objectives assisting the Head of Department with the delivery of functions and responsibilities assigned either by legislation, provides strategic support and administrative services, provides continuous and adequate support service to the PSC and its Office towards achieving its strategic and operational objectives.

The programme was allocated R102 803 million and spent R102 804 million, which was 100% expenditure. The PSC had developed three year audit plan and the Internal Audit Coverage Plan was implemented on an ongoing basis. A Gift Register was updated, maintained and assessed for potential conflicts on an ongoing basis.The PSC Amendment Bill was drafted, developed, liaison with stakeholders conducted and submitted to Cabinet for consideration by December 2013. The PSC had paid all suppliers within 30 days of receipt of invoices.

(b) Programme 2: Leadership and Management Practices

The purpose of the Programme is to promote sound public service leadership, human resource management, labour relations and labour practices. The Programme had an allocation of R29 520 million and spent R29 425 million, which is 99.6% utilisation of budget.

The PSC had achieved 90% compliance regarding receipt of Performance Agreements and provision of advice to Executive Authorities on Heads of Department (HoD) evaluations. A draft Manual on Induction and Orientation of HoDs and Executive Authorities was developed. Based on the BRRR recommendation of the Portfolio Committee, the PSC developed project proposal for the assessment of the effectiveness of training provided by NSG in improving skills and competencies of Public Service Leadership by May 2014.

(c) Programme 3 : Monitoring and Evaluation

The programme is responsible for establishing a high standard of service delivery, monitoring and good governance in the Public Service. There are two sub-programmes under the programme which is Governance Monitoring and Service Delivery and Compliance Evaluations. The Programme had a budget of R29 253 million and expenditure was R29 211 million, which was 99.8% spending on the programme’s budget.

The PSC had undertaken range of research and knowledge-generating activities. These include the State of the Public Service Report 2014, the Public Service Barometer and departmental Monitoring and Evaluation reports. The Commission produced annual report on the tracking of PSC recommendations which would assist the Portfolio Committee to enforce them. The Commission conducted evaluation of the National Youth Service Report which was produced, however it still awaiting final approval.

(d) Programme 4:Integrity and Anti-corruption

The programme is responsible for undertaking public administration investigations, promoting a high standard of professional ethical conduct amongst public servants and contributing to the prevention and combating of corruption.Under these programme there are two sub-programmes which are public administration investigations and professional ethics. The programme was allocated R39 564 million and it spent R39 305 million, which is an expenditure at 99.8%.

In relation to the complaints received through PSC, 30 desktop complaints were investigated and finalised out of 60 lodged in the 2013/14 financial year. A total of 284 complaints/requests for investigation were lodged with PSC, of which 167 were lodged during the 2013/14 financial year. Out of the 284 complaints lodged with the PSC 132 were in respect of national departments, whilst 143 were in respect of provincial departments and 9 were in respect of the municipalities. The nature complaints received are human resource-related complaints (e.g irregular filling of posts), corruption/maladministration, unethical behaviour and general complaints on service delivery.

7.3 NATIONAL SCHOOL OF GOVERNMENT

The National School of Government received its budget appropriation through budget vote 12 of the Department of Public Service and Administration. The appropriated funds for the 2013/14 financial year was R131 922 million with the expenditure of R134 622 million. The School overspent its allocated budget with R2 700 million. The over spending for 2013/14 financial year was as a result of staff development to Administration in order to facilitate the appointment of the Ministry Advisory Task Team.

7.3.1 Programme Performance

(a) Programme 1: Administration

The programme governs the overall management of the School and provides for organisational support services enabling the Director-General/Principal, Branch Heads and all employees in NGS to carry out their responsibilities within an effective governance system. The responsibilities of this programme include providing administrative, legal, human resource and financial management, across the department. The Programme was allocated R80 650 million and the actual expenditure was R84 228 million. The variance was R3 578 million and virement was R5 671 million.

The vacancy rate was above required 10% in the public service. The School had 13.2% of vacancy rate by end of March 2014 as result of the moratorium on the filling of vacancies. Audit Committee meetings and risk management committee were convened as targeted.Contracts for NSG were monitored on a quarterly basis through the implementation of Contract Management System. Responses to the Parliamentary questions were done within three days and submitted to the Ministry. The Financial Delegations Framework was developed, approved and implemented.

The School had an average of 92 days taken to collect debt. Verification audits were conducted during the year under review. A total of 132 officials were trained on internal supply chain management and financial policies.

(b) Programme 2: Public Sector Organisational and Staff Development

The main aim of the Public Sector Organisational and Staff Development Programme is to facilitate transfer payments to the Training Trading Account for management development and the training of public sector employees. The programme addresses School Training Trading Account which comprises of the following three sub components such as Training Policy and Planning, Training Management and Delivery and Specialised Services.

The transfer of funds from vote to the Trading Trading Account (TTA) in 2013/14 amounts to R49.0 million and represents a decrease compared to R52.0 million transferred in 2012/13.

The School implemented the rolling-out of the Breaking the Barriers to Entry Programme in partnership with the National Youth Development Agency (NYDA). 3 Training Needs Analyses were undertaken to determine training interventions. 602 on-site evaluations were conducted relating to programmes like Khaedu, Mentoring and Coaching, Compulsory Induction Programme, Executive Development Programme, and Emerging Management Development Programme.

The School did not perform well on two targets under the sub-programme. One of the target was to develop 3 library policies for the implementation and develop a database of library service providers. Reason for deviations was that library policies were not finalised due to the institutional changes. Due to the moratorium of filling vacancies, the School was unable to develop a framework for the training policy, norms and standards.

7.4 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. 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 and the context of service delivery at the coalface. 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.

The budget of the CPSI is transferred through budget vote 12 of the Department of Public Service and Administration. The original appropriation for the CPSI was R22 866 million. The amount was decreased by R42 000 during the adjusted estimates. In 2013/14 financial year, the final appropriation was R21 587 million with the actual expenditure of R21 571 which represents 99.9% of budget well spent. CPSI was for the first time audited by the Auditor-General of South Africa in 2013/14 financial year. Moreover the AG did not audit the predetermined objectives. A target of 2% on the employment of people with disabilities was achieved.

8. AUDITOR-GENERAL OUTCOMES

The following are matters raised pertaining the DPSA:

The Auditor-General has reported that financial statements present fairly in all material respects the financial position of the Department as at 31 March 2014. The Department’s financial performance and cash flows for the 2013/14 were in accordance with the Modified Cash Standard prescribed by the National Treasury and the requirements of the Public Finance Management Act (PFMA).

The Auditor-General’s Report has the following matters of emphasis:

8.1 Usefulness of reported performance information

At the Centre for Public Service Innovation (CPSI), a total of 38% of the reported targets were not consistent with those in the approved strategic plan.

8.2 Material misstatement

The Auditor-General identified material misstatements to commitments in the annual performance report of the Department, which was submitted for audit purposes. The annual performance report of the CPSI was submitted as a stand-alone report instead of being included in the annual report of DPSA.

8.3 Compliance with legislation

Contracts were awarded to 8 bidders who submitted a declaration but short of stating whether or not they were employed by the State or connected to any person employed by the State in order to comply with Treasury Regulations.

Non-compliance with legislation could have been prevented had compliance been properly reviewed and monitored.

8.4 Leadership

The DPSA and the CPSI did not have sufficient monitoring controls to ensure adherence to internal policies and procedures regarding the reporting on predetermined objectives.

9. OBSERVATIONS

The Committee made the following observations:

9.1.1 The Department should improve targets concerning the employment of the people with disabilities. The improvements should not only target switchboard operation and menial tasks, but also technical as well as management levels.

9.1.2 Connectivity in rural Thusong Service Centres remains a challenge. The Department is urged to seek solutions with relevant stakeholders to address the issue of Broadband internet infiltration through laying more fibre optic cables.

9.1.3 There must be meaningful improvement on the vacancy rate, using the equity plan, by filling all funded posts in the Department and the entire public service and review if they are of necessity.

9.1.4 The Department must invest in the employment of young graduates and ensure correct placement in the entire public service in order to proactively deal with the skills gap and to address attrition, deaths and resignations at senior levels.

9.1.5 The NSG must ensure that it provides credit-bearing courses and programmes.

9.1.6 Parliament had in the 4 th Parliament recommended that the reports of departments and entities should reflect an endorsement by the PSC regarding service delivery performance or composite institutional performance, in the same way as the Auditor-General endorses reports on financial performance. This is to ensure that bonuses by officials and senior management are paid duly against institutional performance and to also ensure that service delivery takes place. This policy directive by Parliament has so far not been met by the PSC because they lack human resource and financial capacity.

9.1.7 Parliament compliments the PSC for the invaluable reports it provides on its own accord and on commissioning by Parliament, individuals and the public service. The proactivity, insight, scenario design and management to deal with issues in the public service has contributed to depth of oversight by itself and by Parliament; which bodes well for recommendation by Parliament to the National Treasury for more funding to the Commission.

10. RECOMMENDATIONS

10.1 Department of Public Service and Administration

The Committee recommends the following:

10.1.1 The Department must ensure that in the entire public service equity targets are met and taken up to 50% over the medium term.

10.1.2 The Committee recommends the speeding up of the process of transferring the responsibility over Thusong Service Centres to the Department. These centres must be established in rural communities as well.

10.1.3 The Department should engage in advocacy through circulars and other means in order to inculcate the new ethos called “My Contract with the People” to ensure that service delivery is a priority of every public servant and that the award of performance bonus will be monitored by Parliament, through the PSC, so that it is only paid in cases of excellent individual and institutional performance.

10.1.4 The Department must finalise the multi-year wage negotiations within reasonable time to avoid labour disputes and crisis.

10.1.5 The turnover rate at senior management of the public service must be proactively and efficiently managed to ensure retention and prevent instability at strategic level.

10.1.6 The Department, through its transversal role and leadership, must ensure that internship in the public service leads to placement and employment of young graduates.

10.1.7 The Department must fast-track the process towards the Government Employee Housing Scheme so that it proactively prioritizes the issue of home ownership.

10.1.8 The Department is urged to standardise and institutionalise the e-Disclosure System so that it is not an option but a uniform facility.

10.1.9 Parliament recommends that the Executive Authority (EA) and the Accounting Officer should introduce a “Consequences Management” strategy in order to deal with non-compliance with laws, regulations, policies and sound financial management practices in the public service.

10.1.10 Parliament recommends that the pricing model used by the Government Employee Medical Scheme (GEMS) be compliant with the conditions of a developmental state since it is a Government Scheme. The model must reinforce the earning power of public servants, especially at lower levels.

10.1.11 Parliament urges the Department and the Government to ensure that all departments and entities adapt their strategies towards the realisation of the National Development Plan (NDP) 2030.

10.1.12 The awarding of contracts to bidders must comply with Treasury Regulation 16 (a) 8.3.

10.1.13 The Department must analyse carefully the audit report of the Auditor-General with a view to resolving the challenges raised and to mitigate the incumbent risks by putting in place proper controls.

10.1.14 The NSG must ensure proper tracking of unemployed graduates who participate in the Breaking Barriers to Entry (BB2E) project so that they are not lost to the public service after investment on them by the State. Collaboration with all departments who recruit interns for learnership and mentorship is crucial to the NSG BB2E project to compile a reliable database of unemployed graduates who are potential employees of the public service.

10.1.15 The NSG should timely design a funding model that minimises the risk of non-payment by departments that have procured training from the NSG. A service that is not supposed to be free must be treated as such. It is the policy of Government that all service providers must be paid within 30 days of receipt of invoice and service.

10.1.16 The mandate of the NSG should the PAM Bill to cater for local government regarding training as a school of choice for the public service. Parliament recommends, therefore, that the National Treasury provides more funding to the NSG after requisite consultations have been made with the NSG and that the NSG’s funding model and pricing should enable it to defray training costs through proper pricing.

10.1.17 Parliament recommends that the NSG should present a clear organogram layout, costing analysis, offerings tailor-made for the revised mandate, objectives of the new mandate as well as the income-generating map of the School. This recommendation is not new, it is recurring because it has not been adhered to.

10.1.18 Parliament recommends that the top heavy structure at the NSG must also participate in course facilitation, training and teaching in order to avoid excessive outsourcing and to derive a value for money out of the structure.

10.2 Public Service Commission

The Committee recommendsthe following:

10.2.1 The PSC must speed up the consultation process regarding the Public Service Commission Amendment Bill so that when the Public Administration Management (PAM) Bill, which extends the mandate of the PSC, is finalised by Parliament, the PSC’s own amended legislation is tabled in Parliament.

10.2.2 Parliament recommends that the National Treasury address the anomaly on the medium term budget of the PSC, especially the 2015/16 financial year as it shows a dramatic regression not considerate of the inflation and procurement trends. This is a matter of concern to Parliament and the PSC. The PSC’s appeal for the rectification of this anomaly has not been given necessary attention by the National Treasury.

10.2.3 Parliament recommends that the PSC conduct an independent survey on perceived and felt change as well as commitment by public servants after the introduction and adoption of the Public Service Charter.

11. Conclusion

The Portfolio Committee believes that if these recommendations could be implemented, there will be a lot of progress concerning the objectives of the Department, the entities and of the entire sector. Recurring challenges would be resolved as quickly as possible if accountability regarding these recommendations can be forthcoming from all the entities within the sector.The Portfolio Committee will conduct its oversight to ensure that that objectives and time frames set by the sector are met.

Report to be considered.

Documents

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