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 womens 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 PSCs 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 departments 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 (R000)
Programme R000
|
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 ICTs 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 programmes 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 CPSIs 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 Departments 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-Generals 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 NSGs 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 PSCs 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 PSCs 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.
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