ATC151029: Budgetary Review and Recommendations Report (BRRR) of the Portfolio Committee on Public Service and Administration as well as Performance Monitoring and Evaluation on the Department of Public Service and Administration (DPSA), Public Service Commission (PSC), National School of Government (NSG) And the Centre for Public Service Innovation (CPSI), dated 15 October 2015

Public Service and Administration

BUDGETARY REVIEW AND RECOMMENDATIONS REPORT (BRRR) OF THE PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION AS WELL AS PERFORMANCE MONITORING AND EVALUATION ON THE DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION (DPSA), PUBLIC SERVICE COMMISSION (PSC), NATIONAL SCHOOL OF GOVERNMENT (NSG) AND THE CENTRE FOR PUBLIC SERVICE INNOVATION (CPSI), DATED 15 OCTOBER 2015

BACKGROUND

The Portfolio Committee on Public Service as well as Planning, Monitoring and Evaluation (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, Public Service Commission and its entities, reports as follows:

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:

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 Portfolio Committee 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 the implementation of the PSC recommendations in the entire public service
Participating in the international treaties which impact on the work of the Committee.

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.

Moreover 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
Include recommendations on the forward use of resources.

3.1 Method

The Portfolio Committee on Public Service and Administration as well as Monitoring and Evaluation compiled the 2014/15 BRRR using the following documents:

The National Development Plan: Vision for 2030.
Medium Term Strategic Framework 2015 - 2020.
State of the Nation Address 2014 and 2015.
Management Performance Assessment Tool 2014
Strategic Plans of the PSC, the Department and its entities.
Annual Performance Plans of the PSC, the Department and its entities.
Annual Reports 2014/15 of the PSC, the Department and its entities
Auditor-General South Africa’s outcomes of audit findings 2014/15.

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.

MANDATE OF THE DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION

The mandate of the Department of Public Service and Administration derive 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:

The functions of the public service,
Organisational structures and establishment of departments and other organisational and governance arrangements in the public service,
Labour relations, conditions of service and other employment practices for employees,
The Health and wellness of employees,
Information management,
Electronic government in the public service,
Integrity, ethics, conduct and anti-corruption; and
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 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: A stable Political-Administrative interface

Promoting stability of leadership in the top of the 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.

Strategic outcome oriented Goal 2: A Public Service that is a Career of Choice

Promoting the public service as a career of choice by adopting a more 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.

Strategic outcome oriented Goal 3: An efficient and effective and operations system

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.

Strategic outcome oriented Goal 4: 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 concerns raised by citizens and other service users and by developing the capacity to monitor the quality of service provision and effecting the required improvements.

Strategic outcome oriented Goal 4: Improved Mechanisms to Promote Ethical Behavior 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 or legislation in order to limit the scope of 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 disciplinary cases where there is possible or actual conflict of interest.

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

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

ANALYSIS OF SECTION 32 EXPENDITURE REPORT

The report is in response to the matters raised by the Portfolio Committee during the Budgetary Review and Recommendations Report 2013/14. The National Treasury responded to Parliament concerning recommendations on the proposed 2015 MTEF allocations for the Public Service Commission to provide additional reprioritized funding with a view to eliminating the shortage in budget. The PSC has a proposed an allocation of R221 million in 2015/16, R234.2 million in 2016/17 and R253.4 million in 2017/18.

Regarding the recommendation to providing more funding to the National School Government, the National Treasury needed to finalise its consultations with the Minister of Department of Public Service and Administration on its new business model. The business model as a mechanism for managing financial implications could be discussed with the National Treasury.

DEPARTMENT AND ENTITIES’ PROGRAMME PERFORMANCE
1. DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION

7.1.1 Budget Allocated and Expenditure 2014/15

In 2014/15, the Department of Public Service and Administration received an appropriation of R875.2 million which represents a nominal increase of R45.5 million, or 5.5 per cent, from 2013/14. Transfers and Subsidies account for R393.1 million of the available budget and of this amount the Department had transferred R393.1 million, or 100 per cent, mainly to departmental agencies and accounts. This means the Department had an available budget of R482.1 million for operations. Of this, the Department has spent R420.3 million, or 87 per cent, the majority of which has been used on compensation of employees and goods and services.

The Department spent R813.8 million to the 2014/15 financial year, whilst having an available budget of R875.1 million leaving funds unspent to the value of R61.2 million. This is mainly due to the non-procurement of office furniture and equipment for the Department’s new office accommodation which was scheduled to be occupied in November 2014, as well as delays in the implementation of projects such as the Batho Pele Gateway Call Centre, and the IT connectivity for the Thusong Service Centres.

The largest element of operational expenditure in 2014/15 was R192.9 million spent under the Administration programme mainly on goods and services and compensation of employees. The next largest element was R84.3 million under the Service Delivery and Organisational Transformation programme, followed by R55.2 million under the Governance and International Relations programme, primarily for compensation of employees and goods and services.

Operational expenditure has decreased at a nominal rate of 7.8 per cent, or R35 million, when compared to the previous financial year. Rand value expenditure decline was greatest in the Administration programme, mainly driven by lower spending on compensation of employees. The Governance and International Relations and Public Sector Information and Communication Technology Management programmes shows the next largest decreases primarily due to lower spending on goods and services. Spending under the Service Delivery and Organisational Transformation programme has increased mainly due to higher spending on compensation of employees.

Appropriation per programme (R’000)

Programme R’000	Final appropriation	Shifting of funds	Virement	Expenditure	Variance
Administration	213 714	0	6 290	194 794	18 920
Human Resource Management and Development	36 117	0	(2 150)	36 069	48
Labour Relations and Remuneration Management	50 555	0	(3 526 )	35 375	15 180
Public Sector Information Communication Technology Management	32 573	0	(2 832)	17 203	15 370
Service Delivery and Organisational Transformation	253 347	0	7 673	248 886	4 461
Governance and International Relations	288 768	0	(5 455)	281 499	7 269
Total	875 074	-	-	813 826	61 248

7.1.2 Programme Performance

(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 was allocated a final appropriation of R213.714 million and spent R194. 794 million. A virement of R6. 290 million was shifted into the Programme from Programmes 2, 3 and 4 respectively and it saw a saving of R18.920 million. The Department reprioritised its savings in order to fund the procurement of office furniture for the new office accommodation as the initial agreement with the Department of Public Works (DPW) was that the DPSA will move into the new building during 2014.The movement to the new office was however delayed from the side of the contractors and the new date was projected to be September 2015, thus resulting in a saving of the funding that was prioritised to fund the procurement of the office furniture. A rollover for this saving into the 2015/16 financial year has been requested

The Department drafted the Programme of Action on Outcome 12. A progress report was submitted to the Governance and Administration Cluster (G&A) of the Cabinet Committee. In addition the Department provided legal advice support to other government departments on the implementation of the Public Service Act and Regulations. Strategic Plan 2015/2020 and 2015/16 Annual Operational Plan were tabled in Parliament on the expected time. Communication campaigns were implemented on the achievements of the current administration.

(b) Programme 2: Human Resource Management and Development

The purpose of the programme 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 four sub-programmes under the programme, which are Human Resource Planning, Practices and Performance and Practices, Diversity Management, Employee Health and Wellness, Integrated Financial Management System and Human Resource Development.

Programme 2 was allocated a final appropriation of R36.117 million and spent R36.069 million, which is an estimated 99%. A virement of R2.150 to Programme 1 took place. There was a savings variance of R48.000.The programme contributes to the National Development Plan objectives of building a capable public service cadre and professionalization of the public service.

The Department submitted two reports to the Minister on the period it takes to fill a funded vacancy within the public service. The average vacancy rate at 31 December 2014 was 14,16%. The median period to fill posts amounts to 5,02 months, in respect of posts filled during the period 1 October 2014 to 31 December 2014 which is within the set target of 6 months. The Public Human Resource Development Strategic Framework has been reviewed. In addition, the Department monitored and reported on the developments with regard to provision of Reasonable Accommodation and Assistive Devices for public servants. Furthermore, support on the implementation of sexual harassment policy was provided to national and provincial departments. The Department provided support for the implementation of the four Employee Health and Wellness Policies for the public service.

(c) Programme 3: Labour Relations and Remuneration Management

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. It promotes home ownership by employees in the public service and contributes to improved productivity. It also contributes to improving the management of discipline within the public service by enhancing the labour relations framework and negotiating the revised disciplinary code and procedure. There are three sub-programmes, which are Negotiations and Labour Relations, Conditions of Service and Remuneration and Market Analysis.

The programme was allocated a final appropriation of R50.555 million and spent R35.375 million, which is an estimated 70.0%. There was variance of R15.180 million. This is not a positive outcome and indicates that the programme had severe underspending. Underspending, resulted in R3.526 million savings in Programme 3: Labour Relations and Remuneration Management under sub-programmes “Public Service Remuneration Review Commission (PSRRC) and “Policy and Procedure on Incapacity Leave and Ill-Health Retirement” (PILIR). The PSRRC experienced challenges especially in securing staff for such a short period and the work was therefore delayed which resulted in the 2014/15 funding not being utilised in full. The PSRRC contract has been extended to April 2017.

A bid to appoint a service provider to conduct the Review of the PILIR Modality was advertised twice during the 2014/15 financial year without success. A decision was taken to follow the route of a closed bid where respectable companies with the required experience will be approached to bid. The Department monitored the implementation of Resolution 1 of 2012 and reports were submitted to the Minister. Furthermore, mandates were sought and received from the Mandate Committee. A proposal for next rounds of salary negotiations was tabled at the Public Service Coordinating Bargaining Council.

The Department compiled reports on the implementation of the disciplinary code and procedure in the public service. During the year under review, the Department continued to implement the Charter and distributed its publication during the Policy Implementation support workshops. A progress report on the implementation of the Government Employees Housing Scheme (GEHS) was submitted to the Minister. Two drafts of the Remuneration Policy had been developed and consulted on with the PSCBC.

(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 R32.573 million and spent R17.203 million. Underspending of R15.370 million (52.8%) due to un-filled vacancies and payments not being made to SITA regarding the Batho Pele Gateway Call Centre and the connectivity at Thusong Service Centres. Service level agreements were not in place to allow for the execution of these activities.

The Department conducted an analysis on bandwidth and uptime on a quarterly basis in 56 Thusong Service Centres. The Information Communication Technology expenditure of Government was monitored and the expenditure review was submitted to the Director-General and the Government Information Technology Officer (GITO). Mechanisms to contribute towards reduction of security risks have been identified and a report on the Public Service ICT security monitoring lapses. An e-Government Strategy had been developed.

(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 R253.347 million and spent R248.886 million, which is an estimated as 99.2%. An underspending of R4.461 million occurred from the delays in undertaking a study of access to Thusong Service Centres. Also, savings occurred as a result of tenants’ installation at the Centre for Public Service Innovation (CPSI) when the National Treasury approved the Centre to become an independent government component. However, Department of Public Work’s restrictions on additional space to not exceed 20% or less of the existing lease agreement caused delays in spending. The Department overspent by R7.673 million to conduct Minister’s roadshows and engagement with frontline public servants, even as it underspent in some projects.

Report on the geographic accessibility study for the Thusong Service Centres in eight provinces had commenced. Advocacy workshops were conducted with the 9 provinces and 73% of provincial departments attended. A total of 561 employees were capacitated and support provided on an individual basis to provincial and national departments on the completion of the delegation registers. Sector advocacy workshops were conducted with the Health, Education and Human Settlement departments. The Department continuously monitors the submission of quality Service Delivery Improvement Plans (SDIP) in the public service. Furthermore workshops on the citizen engagement guide were conducted in the selected provinces of Northern Cape, Limpopo, Kwa Zulu Natal, Eastern Cape and Mpumalanga. The Department developed a framework on professionalization of the public service.

(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 and international levels. The programme was allocated a final appropriation of R288. 768 million and spent R281.499 million, which is estimated at 97.5%. There was a variance of R7.269 million.

There was underspending in the African Peer Review Mechanism (APRM) relating to a delay in the procurement of services for the Open Government Project (OGP) Communications and Marketing Strategy due to the initial bidding evaluation process not finding a suitable and qualified service provider. The bid had to be re-advertised. Underspending occurred also due to un-filled vacancies and delays in procurement. The amount involved is R4.950 million. R505.000 was shifted to Programme 5 to fund the skills development levy.

The Department produced quarterly reports on the status of establishment and key indicators for each national and provincial department and loaded them on the Vulindlela website. In addition to the achievement, the Department completed the Management Framework for the Government one-stop shop. Furthermore, it facilitated the development of the regulations for the Single Public Service legislation. An implementation support was provided and a monitoring report on the implementation of the Framework was submitted to the Ministry. Lastly the Department conducted National and Provincial workshops on African Peer Review Mechanism (APRM).

PUBLIC SERVICE COMMISSION (PSC)

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 gets its budget through a transfer from the budget vote of the Department of Public Service and Administration. The final appropriated budget for the PSC was R226.031 million and spent R225.800 million which is an estimated as 99.9%.

Programme Performance

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, providing strategic support and administrative services, providing continuous and adequate support service to the PSC and its Office towards achieving its strategic and operational objectives.

The programme was allocated R107.293 million and spent R107.075 million, which was 99.8% expenditure. The PSC developed a three year audit plan, which was reviewed and top ten strategic risks were identified on a regular basis. The PSC Annual Report for the 2013/14 financial year was approved in July 2014. The PSC submitted to the MPAT imperatives to measure quality of its management to the Department of Planning, Monitoring and Evaluation. An Annual Performance Plan complying with Treasury Guidelines was approved in January 2015 and quarterly reports were submitted to the National Treasury and the DPME. Out of 36 vacant posts, 7 were filled within 4 months after becoming vacant and 17 were filled later than the 4 month period. All suppliers were paid within 30 days of receipt of invoices.

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 budget allocated for the programme was R35.748 million and the programme spent R35.742 million.

All grievances received by February 2014 until January 2015 were investigated within the prescribed time frame. The Commission approved a factsheet on trend analysis on the grievance resolutions in the public service. The PSC received 71% of the expected performance agreements and quality assured and filed. As part of the recommendation of the Portfolio Committee, the PSC finalised a report on the assessment of the effectiveness of training provided by the Public Administration Leadership and Management Academy (now the National School of Government) in improving skills and competencies in the Public Service.

The PSC is in the process of drafting a report on the assessment of the implementation of the Performance Management Development System (PMDS) in the Eastern Cape Province. In March 2015, the PSC finalised a report on the skills and audit of human resource and financial management for senior management in the Western Cape Province. A factsheet was finalised on the rate of compliance by the Heads of Department with filing of Performance Agreements. The PSC approved a report on the appointment of ministerial staff in national and provincial departments.

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 budget allocated for the programme was R37.335 million and the expenditure was R37.330 million.

The PSC updated a data centre on an ongoing basis with the information on the performance of the public service. The State of the Public Service (SOPS) was approved by the PSC. Furthermore, the PSC produced nine concept papers on the public service leadership for a Developmental State. The PSC developed and approved a Public Service Barometer. An annual report on tracking the recommendations of the PSC was approved. A review on current Protocol on Tracking the recommendations was in progress during the year under review.

A report on Citizen Forum Toolkit at the Thembisile Hani Local Municipality was approved. In addition to the target achieved, the PSC produced a report on the evaluation of high performing rural schools in Limpopo province. A report on an assessment of effectiveness of education districts supporting the delivery of quality education was finalised. During the year under review, the PSC conducted an inspection to assess the availability of medicines and medical equipment in selected provinces. Reports on Limpopo and Free State Provinces were approved by the PSC.

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. There are two sub-programmes; which are Public Administration Investigations and Professional Ethics. The programme was allocated R45.655 million and it spent R45.653 million.

In relation to the complaints lodged with the PSC in terms of the Complaints Rules, as at 31 March 2015, a total of 419 complaints or requests for investigations were lodged. The number of public administration investigations successfully concluded is 107 and 90 cases were resolved earlier and finalised and 147 early resolution cases were closed. The PSC reached its set target of 100% (9,692) in promoting ethical conduct amongst public servants through management of the Financial Disclosure Framework (FDF) and the National Anti-Corruption Hotline (NACH). In addition, the PSC provided advice on professional and ethical conduct in the public service. The PSC finalised a factsheet on the cases of financial misconduct and the recovery of money lost through financial misconduct for the 2013/14 financial year.

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 2014/15 financial year was R138.922 million with the expenditure of R133.890 million. There was a variance of R4.618 million.

Programme Performance

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 the NSG 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 comprises of the following sub-programmes: Office of the Principal and Corporate Management.

The programme was allocated R82.911 million and the actual expenditure was R78.293 million, which amounts to 94.4%. There was variance of R4.618 million

The NSG developed and reviewed 21 policies to ensure effective organisational management and compliance with legislation and good governance framework. The target was not achieved due to extensive policy work undertaken by the School. Monitoring quarterly performance reports were effectively utilised. The School complied with the submission of the quarterly performance for Management of Performance Assessment Tool administered by the Department of Planning, Monitoring and Evaluation.

Comparing the year under review with 2013/14, the vacancy rate was above the required 10% in the public service. In 2013/14 financial year, the School’s vacancy rate was at 13.2% by end of March 2014 as a result of the moratorium on the filling of vacancies. The vacancy rate by March 2015 increased to 15.4%, which is above the 10% requirement in the public service. The School developed a five-year Strategic and Annual Performance Plan which was tabled on time in Parliament. Moreover, the NSG aligned the Service Delivery Improvement Plan (SDIP) with the Medium Term Strategic Framework (MTSF) and the Strategic Plan for 2015-2020.

A conceptual document on the funding model was developed and submitted to the Principal for approval. Further consultations are still undertaken to finalise the funding model for the School. The target of 60 days on the debt collection was not achieved. The School collected debt within 90 days in the 2014/15 financial year. A total of 136 employees were trained on Finance and Supply Chain Management. All payments were made within 30 days of receipt of invoices.

Programme 2: Public Sector Organisational and Staff Development

The main aim of the Public Sector Organisational and Staff Development Programme is to facilitate transfer of payments to the Training Trading Account for management development and the training of public sector employees. The programme caters for the School Training Trading Account which comprises of the following three sub-components: the Training Policy and Planning; Training Management and Delivery; and Specialised Services. Programme 2 was allocated a final appropriation of R55.597 million and the expenditure of R55.597 million was realised, which is at 100%.

A diagnostic analysis framework was developed within a set of norms and standards for training to provide support to the public sector institutions. During the year under review, integrated research and training needs analysis framework was developed and implemented to effectively diagnose and analyse training needs in the public sector. Monitoring and Evaluation framework was approved and implemented. A total of 62 site evaluations were undertaken related to the School’s programme. Research agenda was developed based on the strategic framework for the NSG research work. Three research reports were produced and disseminated. The School held four roundtable discussions to stimulate debate, insight and understanding of the NSG agenda.

A study was undertaken on the Compulsory Induction Programme (CIP) as part of analysing learning and development trends in the public sector. The School completed three application of learning studies. A total of 77 facilitators, assessors and SMEs oriented for delivery were recruited for technical specialised training. The School trained a total of 38 307 persons in all its programmes in the public service. During the year under review, a total of 210 internal trainers were contracted and professionalised as on-board training facilitators. As part of offering the e-learning platform, the School engaged in 20 e-learning interventions during the year.

A target of 20 000 new public servants on the CIP was not achieved due to low uptake on training programme. Four quality reports were produced annually for the Minister of Public Service and Administration on the rollout of the CIP. All trainees commenced their training programmes within two months of acceptance of their bookings. The School implemented the roll-out of the Breaking the Barriers to Entry Programme. A total of 1 670 unemployed youth graduates benefited and were measured through attendance of formal training. Of 1 670 unemployed graduates trained, 4.3% of interns secured jobs in national departments and 6.24% of interns within provinces.

A draft concept paper was developed to design a formal graduate (internship) and cadet (learnership) recruitment scheme to be implemented by departments in attracting and nurturing young talent. The School developed and published a prospectus on the website to be accessible by the public servants. The status of the NSG as an accredited training provider as well as accreditation of training programmes are monitored on a quarterly basis. The target was achieved in this regard.

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. 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 the budget vote of the Department of Public Service and Administration. In the 2014/15 financial year, the final appropriation was R25.355 million with the actual expenditure of R25.553 million which represents 100% of budget well spent. The CPSI was audited by the Auditor-General of South Africa. The AG did not audit the predetermined objectives. A target of 2% on the employment of people with disabilities was achieved.

AUDITOR-GENERAL OUTCOMES

The following are matters raised pertaining to 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 2015. The Department’s financial performance and cash flows for the 2014/15 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:

8.1.1 Financial reporting framework

The National Treasury had exempted the Centre of Public Service Innovation (CPSI) from complying with Section 40 of the PFMA for the reasons indicated.

8.1.2 Unaudited supplementary schedules

The supplementary information set out on pages 255 to 269 does not form part of the financial statements and is presented as additional information. The Auditor-General had not audited this schedule and, accordingly, he could not express an opinion thereon.

8.1.3 Legal and regulatory requirements

The objective of the Auditor-General’s tests was to identify reportable findings as described under each subheading but not to gather evidence to express assurance on these matters. Accordingly, he could not express an opinion or conclusion on these matters.

8.1.4 Predetermined objectives

The Auditor-General did not identify any material findings on the usefulness and reliability of the reported performance information for the following programmes and objectives:

Programme 2: Human Resource Management and Development.
Programme 3: Labour Relations and Remuneration Management.
CPSI: Objective 2 (Solution Support Incubation).
CPSI: Objective 3 (Enabling Environment).

8.1.5 Compliance with legislation

The Human Resource Plan was not reviewed with a view to meeting the resultant human resource needs.

8.1.6 Leadership and internal control

Management did not review the Human Resources Plan annually. This is a result of an oversight by management as management focussed on preparation of a new Human Resources Plan that covers the MTEF period 2016 -2020.

OBSERVATIONS AND KEY FINDINGS

The Committee made the following observations:

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.
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.
There must be a 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.
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.
The NSG must ensure that it provides credit-bearing courses and programmes.
Parliament had in the 4th 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.
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.
Some deviations on predetermined objectives and errors in respecting financial protocols were observed, namely: redirecting of funds without following proper management approval protocols and declaring savings to justify irregular expenditure.
The Department and its entities received an Unqualified Audit Report in 2014/15.
There is a need for re-alignment of Auditor-General's outcomes report with the Quarterly Reports that feed into the Annual Reports, so that when the Annual Reports are released the discrepancies would have been addressed and information from the Auditor-General and the Accounting Officer is not far apart. This will also allow Committees to do oversight on financial management on an ongoing and current bases.

RECOMMENDATIONS

10.1 Department of Public Service and Administration

The Committee recommends the following:

The Department must ensure that in the entire public service equity targets are met and taken up to 50% over the medium term.
The Department is complimented for revising the Public Service Regulations to make it easy for the public service to implement and effect the Public Service Act of 1994 with its amendments and the Public Administration Management (PAM) Act No. 11 of 2014.
The Department must improve on the representivity of people with disabilities at middle and senior management levels. The Department has improved on representivity of women at senior management levels.
Thusong Service Centres must be established in rural communities. The Maponya Mall Model should gradually cascade into other townships, urban and rural areas.
Clear guidelines on what represents good practices in Thusong Centres must be set, and clarity on the department that must be held accountable for these centres must be provided and such department must be assigned with all necessary tools.
All funded posts must be filled, at most, within a period of six months. The Department is urged to monitor and make interventions in the public service where funded posts are not filled on time, as this impacts on service delivery. All Senior Management Service vacancies must be filled urgently.
The Department has done well in improving in most set performance targets to expected baseline standards to realise the value for money. The Department needs to improve on spending on certain targets.
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. Therefore, it should not chase after the pricing model used by other schemes not set up by Government. This affects the earning power of public servants, especially at lower levels.
The Department has done well in facilitating learnerships to improve skills and to create opportunities of employment for young graduates. More budget must be allocated to this sub-programme to improve the lives of young people and to increase and improve on the intern recruitment system.
The Department must create a balance between intern and learnership intake and the expectation of employment by the interns.
Improvement in the Financial Disclosure Framework is complimented. The e-Disclosure facility must be encouraged. To institutionalise the e-Disclosure, there must be a cut-off date for the acceptance of manual disclosures.
The Department must come up with a watertight policy on the verification of qualifications in the public service to avoid cases where employees misrepresent their qualifications. The verification of some qualifications before 1994 must be speeded up.
The Department is urged to speed up the solution of the stockpiles in the implementation of the Policy on Incapacity Leave and Ill-health Retirement (PILIR). The Department must finalise the appointment of service providers to address PILIR applications and the manifested backlogs.
The Department is requested to ensure that it reviews the Human Resource Plan annually.
The Department in collaboration with the Department of Social Development are requested to come up with a proper definition of “disability”, which is suitable for the public service so that chronic illnesses that affect productivity and absenteeism can be categorised correctly.
The Departments of Public Service and Administration and of Planning, Monitoring and Evaluation are requested to ensure that the policy to pay service providers are paid within 30 days so that small service providers do not lose their employees and business. This performance area must be weighted heavily within the performance assessment process.
The Internal Audit should follow up on management's actions to address specific recommendations and ensure the strengthening of the internal control function.
The Audit Committee must quarterly monitor risks and ensure the implementation of commitments on corrective action by management.
The Senior Management must address the slow response in addressing the root causes of poor audit outcomes.
The Senior Management must administer the Consequences Management system to ensure that recurring challenges are addressed.
The Department and the various entities must always include in their annual reports some information on what each compiled and submitted report entails. The mere submission of a report cannot be accepted as the achievement of a target. This will enable the Portfolio Committee to have an idea of the scope or quality of the report and whether or not the findings of such a report reflect compliance or not, or identify improvements or deterioration.
The Department’s annual report must reflect on the progress towards the achievement of the NDP sector outcomes. This does not reflect in the report, except for the mere listing of the outcomes to be achieved.
The Public Sector Information and Communication Technology (PSICT) programme must be given urgent attention as it is inadequate to deal with risks. The strategy of the programme must be implemented efficiently to avert risks.
The Department and the entities must improve on programme planning to minimise on variances in financial management. Resources must be allocated to pre-determined needs and priorities and be utilised accordingly.
Recruitment and other processes at the Public Service Remuneration Review Commission (PSRRC) must be speeded up to avoid unnecessary extension of the said Commission’s mandate.
In future, there is a need to enable the Auditor-General’ s Office to sit together with departments and entities when presenting its findings and departments presenting their annual reports so as to clarify issues and challenges to the Portfolio Committee.
Large delegations from the Department and entities must be avoided in order to save on the expenses.

Public Service Commission

The Committee recommends the following:

The Public Service Commission is requested to revise the financial disclosure information so that the content of disclosures is substantive to effect easy detection of financial interest.
Inspections across the spheres of government should in future be undertaken in close co-operation with existing quality management initiatives in those spheres of government.
Duplication of mandates must be avoided where necessary in order to save on resources. This would apply, for example, in cases where inspections to schools are conducted as the Department of Basic Education carries out this mandate. However, without hindering the function of the PSC, a proper dialogue on the approach to these situations must be facilitated by the PSC to find a suitable solution.

National School of Government

The Committee recommends the following:

The National School of Government (NSG) is complimented for strategizing to design a hybrid curriculum that will cater for occupational skills as well as academic and professional platforms. This will ensure the synergy of knowledge and skills with theory and practice. Marketing and advocacy strategies must be devised in order to promote awareness in departments.
Training must include a detailed explanation of exactly what corruption entails and how corruption affects service delivery, especially to the poor.
The NSG is asked to seriously attend to its core business, namely: purpose-driven training of public servants. The NSG should concentrate on the development and roll-out of training programmes that address the unique needs in the public service.
The training output of the NSG should be notably increased as a matter of urgency.
Centre for Public Service Innovation

The Committee recommends the following:

The Centre for Public Service Innovation (CPSI) is urged to concentrate on innovations that would improve service delivery in the public service than innovating on private projects that do not address priorities of Government.
The CPSI is also advised to spend its budget more on service delivery issues than on innovation awards
The CPSI is requested to innovate on service delivery projects, including but not limited to: queue management in hospitals; best practices in curbing vandalism of public property and employment of youth.
The CPSI should make evidence-based project selections, linked always to the relevant NDP outcomes as listed on page 38 of the DPSA Annual Report.

Conclusion

The Department was able to spend a substantial percentage of its allocated budget, which is a commendable thing. The challenge lies in the fact that even as most of the budget was spent, there were some projects within programmes that were not achieved; which caused the shifting of budget within and between programmes. The Department needs to give an urgent attention to this challenge. Accountability within the Department must be strengthened with sound internal controls.

Report to be considered.

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