ATC160510: Portfolio Committee on Public Service and Administration as well as Planning Monitoring and Evaluation

Public Service and Administration

Portfolio Committee on Public Service and Administration as well as Planning Monitoring and Evaluation

[REPORT ON BUDGET VOTE 10: DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION: DATE 04 MAY 2016]

 

1. BACKGROUND

The Portfolio Committee on Public Service and Administration as well as Planning, Monitoring and Evaluation (hereinafter referred to as the Portfolio Committee) having considered the directive of the National Assembly to consider and report on the Strategic Plans, Annual Performance Plans and Budget allocations of the Department of Public Service and Administration, National School of Government, Centre for Public Service Innovation and Public Service Commission which were tabled by the Minister in terms of the Public Finance Management Act (Act No 1 of 1999), reports as follows:

1. INTRODUCTION

The Public Finance Management Act, section 27 stipulates that the Minister must table the annual budget for a financial year in the National Assembly before the start of the financial year. Subsequent to that the Money Bills Amendment Procedures and Related Matters Act, No 9 of 2009, section 10 (1) (c) clearly stipulate that the relevant members of Cabinet must table updated strategic plan and annual performance plan for each department, public entity or institution, which must be referred to the relevant Committee for consideration and report.  

In line with its constitutional oversight mandate over the executive, the Portfolio Committee considered presentations on the Strategic Plans, Annual Performance Plans and budget allocations of the Department of Public Service and Administration (DPSA) for Budget Vote 10 which comprises of the following institutions: National School of Government (NSG), Public Service Commission (PSC), and Centre for Public Service Innovation (CPSI). The Department is a conduit of the budget for the National School Government, Centre for Public Service Innovation and Public Service Commission.

1. OVERVIEW OF THE DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION

The Department of Public Service and Administration is expected 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. The Constitution of the Republic of South Africa envisages a Public Service that is professional, accountable and development-oriented.

The NDP identifies specific steps that need to be taken to promote the values and principles of public administration enshrined in the Constitution. Furthermore the NDP highlights the need for well-run and effectively coordinated state institutions with skilled public servants who are committed to the public good and capable of delivery consistently high-quality services, while prioritising the nation’s development objectives.

Unevenness in capacity that leads to uneven performance in the Public Service is also acknowledged in the NDP. This is caused by a complex set of factors, including tensions in the political-administrative interface, instability of administrative leadership, skills deficits, insufficient attention to the role of the State in reproducing the skills it needs, the erosion of accountability and authority, poor organisational design and low staff morale. Steps are needed to strengthen skills, enhance morale, clarify lines of accountability and build an ethos of public service. These steps are guided by the need for long-term policy stability as well as awareness of potentially adverse effects of over-regulation.

The main objective of the Department is to put in place the mechanisms and structures that can support departments in developing their capacity and professional ethos. The Public Administration Management Act (PAMA) has been signed into law and as a result the objective of establishing a uniform system of public administration will ensure that common norms and standards are achieved at all government levels. This effectively places DPSA at the centre of ensuring that all operating platforms and units to drive a compliant ethical public service are guided by standards and norms.

 

 

 

1. LEGISLATIVE MANDATE

The Department is mandated by Section 195(1) of the Constitution which sets out 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.

 

1. STRATEGIC GOALS OF THE DEPARTMENT

The key strategic priorities of the Department are explained below:

4.1 Building an efficient and effective Public Service

The Department continued to eliminate areas of duplication, weaknesses and wastage within the public service and administration by identifying appropriate interventions to address these challenges. In so doing so, it ensured the following 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 Public Service Coordinating Bargaining Chamber (PSCBC) collective agreements. Interventions that promote and support the health, wellness and positive morale of public servants are implemented and meaningful platforms are created and institutionalised to enable citizens to partake in and influence government’s policies with regard to how public services are delivered to them.

 

 

4.2 Building a capable, equitable and professional Public Service

This strategy is in line with the National Development Plan (NDP) in that a capable state, which is well run and effectively coordinated among different government institutions, will operate with the integrity and effectiveness this strategy envisages. The Department planned to introduce measures to professionalise the public service, which will include, amongst others, compulsory training programmes and the review and enhancement of appointment procedures for senior managers. The issue that the Department needs to revisit is the affirmation of people with disabilities. This is huge a huge challenge for public service since the employment is still around 2% in the public service. As at August 2015, representation it was at 0.66% in the entire public service.

The public service has made tremendous inroads concerning the affirmation of women in senior management. However, the public service has not reached 50% gender representivity. As of now, the gender representivity stands at 40.5% regarding women in senior management. This is against the staff complement of 1.3 million employees. As at March 2015, there were 9649 filled SMS positions of which 3 914 (40.5%) were filled by women and 5735 (59.5%) were filled by men. Every year the statistic in this regard had been improving by a percentage point.

4.3 Introducing appropriate legislative frameworks for the Public Service and Administration

The Department had planned to set up an enabling environment for effective public administration to be strengthened by reviewing existing legislation and introducing new legislative frameworks for public service and administration. To this effect, the Public Administration Management Bill was introduced to Parliament for processing, which had been finally assented to by the President in the form of the Public Administration Management Act 11 of 2014. By the beginning of 2015, already, the legislation was in full force and it, among other things, introduced the transformation of PALAMA into a National School of Government. At present, the Public Service Commission Amendment Bill [B21 – 2015] was tabled to Parliament and is still in process.

4.4 Inculcating an ethical ethos and achieving a clean Public Service and Administration

The Department is committed to promoting a corruption-free public administration through the implementation of practical interventions to prevent, detect and combat corruption. The Department also promotes and reinforces the ethical behaviour of public servants through improving compliance to public administration prescripts and regulations. To this effect, the Public Administration Management Act (Act 11 of 2014) was passed by Parliament and finally assented to by the President. Among other things, the Act has introduced measures to prevent public servants from doing business with the State, for which any civil servant found to be in breach will face a charge of misconduct with either a fine imposed or termination of service being instituted.

4.5 Improved public administration in Africa and internationally

The Department planned to contribute towards improved public service and administration in Africa and internationally through entering into mutually beneficial partnerships, dialogue and domestication of best practices. To this effect, the Ministry signed and ratified the Africa Public Service Charter on behalf of State and Government early in 2014. Values guiding the Service Charter are transparency and accountability, and good human resources management.

1. STRATEGIC PRIORITIES 2015/2020

The priorities for the Department of Public Service and Administration over the medium term period are informed by the National Development Plan objectives which are therefore translated into the Medium Term Strategic Framework (MTSF) 2015-2020. The Department highlighted the following priorities to the Portfolio Committee:

• A stable political-administrative interface

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

• A public service that is 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.

 

• Efficient and effective management and operations systems

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

• Increased responsiveness of public servants and accountability to citizens

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

• Improved mechanisms to promote ethical behaviour in the public

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

 

1. BUDGET ANALYSIS

The overall budget allocation for the Department of Public Service and Administration’s is R770.5 million for 2016/17 compared to R930.9 million for 2015/16 financial year, which is an increase by 9.1 per cent in nominal terms. However, in real terms the total budget allocation for the Department decreased by -14.72 per cent between 2015/16 and 2016/17.

One of the major cost drivers in the department is compensation of employees, due to labour intensive nature of its work, a significant number of vacant funded positions over the years has resulted in underspending. As a result, the department’s compensation of employees’ budget has been reduced by R28.7 million for 2016/17. The Department received increased funding of R13.2 million in 2018/19 to cover the costs of the public sector wage agreement (R4.8 million for the department, R4.6 million for the Public Service Commission and R3.8 million for the National School of Government). The Department aligned its mandate to broader objectives of the National Development Plan. The budget vote of the Department of Public Service and Administration is divided into six programmes that seek to achieve its mandate.

Table 1: Programmes and budget allocation

Programme R'000	Revised Estimates 2015/16	Medium Term Expenditure Estimates
		2016/17	2017/18	2018/19
Administration	217.5	215.7	225.9	238.5
Policy Development, Research and Analysis	31.2	32.1	34.4	36.7
Labour Relations and Human Resource Management	70.2	81.4	74.5	67.2
4. Government Chief Information Officer	18.9	20.9	22.2	23.6
5. Service Delivery Support	224.1	138.1	244.1	262.5
Governance of Public Administration	288.4	282.3	299.8	320.3
Total	830.3	770.4	900.9	948.7

Source: Estimates of National Expenditure (2016)

 

1. PROGRAMME PERFORMANCE
   1. Programme 1: Administration

The main purpose of the programme is to provide strategic leadership, management and support services to the Department, and coordinate the Department’s international relations. The purpose of the programme is to provide policy, coordinated strategic and overall administrative support services to enable the Ministry and the Department to deliver on mandates. The budget for Programme 1 decreased from R219.5 million in 2015/16 to R215.7 million in 2016/17. This represents a -8.61 per cent increase in real terms in the budget allocation between 2015/16 and 2016/17. The budget under this programme will increase over the medium term. The programme takes 28 per cent of the overall budget.  

Budget allocated in this programme will be spent on monitoring the compliance to internal and external Human Resource and Labour Relations Policy Prescripts and Procedures. In this financial year, the department intended to market and brand, and submit quarterly reports on the implementation of Communication Campaigns. Information Technology controls ensures confidentiality, integrity and availability of state information, enables service delivery and promotes national security. The Department monitors on a quarterly basis all ICT support systems and processes and governance arrangements. The department will finalise consultation process for the first phase of the Public Administration Management Regulations.

1. Programme 2: Policy Development, Research and Analysis

The main purpose of this programme is to manage and oversee the formulation, development and review of policies, policy reform and transformation programmes. It also manages research on and analysis of public service capacity, performance and reform by conducting productivity, accessibility and continuity studies tracking trends in best practice in public administration discourse in order to enhance access to public services through feasibility and continuity studies.

In 2015/16 the budget allocation for Programme 2 was R38.6 million and in 2016/17 the allocation is R32.1 million. In real terms the budget allocation of Programme 2 decreases by -21.99 per cent between 2015/16 and 2016/17. Allocation to this programme takes 4.16 per cent of the overall budget. The bulk of the Programme’s budget (R5.8 million) is allocated to the Productivity and Efficiency Studies sub-programme, which is responsible for designing and implementing productivity and efficiency frameworks and instruments as well as capacity assessment frameworks and instruments for the public service.

The budget allocation for the Integrated Public Sector Reform sub-programme has increased from R4.1 million in 2015/16 to R4.7 million in 2016/17. This is the second largest allocation to a sub-programme of Policy Development, Research and Analysis. Spending in this programme is expected to increase over the medium term to R5.3 million.

The department intends to conduct research to support and inform the design of the draft regulations for identified sections of the Public Administration Management Act of 2014. Thusong Service Centre programme has over the years managed to provide a platform from which all sectors of society could converge and share information, deliver services and transfer skills. Institutional model to coordinate all Thusong Service Centres will be developed in this financial year. Moreover, research will be conducted on the alternative service delivery model for the Thusong Service Centres cluster.

The department plans to assess the status quo in relation to how departments are implementing existing Public Administration Norms and Standards in the areas of Performance Management, Human Planning and Human Resource Development in one national department and two provinces. Draft Public Service Productivity Management Tool in two selected departments will be piloted and thereafter refine the tools. In addition, the department will monitoring the progress made by the Public Service with regards to the provision of reasonable accommodation and assistive devices and on meeting equity targets of 50 per cent women and 2 per cent of disabilities.

7.3 Programme 3: Labour Relations and Human Resource Management

The purpose of this programme is to develop, implement and monitor human resources policies and functions by managing labour relations negotiations, employee relations, discipline and work environment management. The programme is aimed at designing remuneration and job grading policy frameworks as well as support the implementation of human resource development and planning strategies, systems and practices.

Programme 3 accounts for 10.56 per cent share (R81.4 million) of the total budget vote in 2016/17. Between 2015/16 and 2016/17, the budget allocation for Programme 3 increased by 3.75 per cent in real terms. Expenditure in the Employee Benefits sub-programme is expected to grow at an average annual rate of 11.6 per cent, largely due to establishment of the housing scheme, from R11.3 million in 2015/16 to R15.7 million in 2018/19. The programme is also responsible for monitoring the vacancy rate in the public service. The programme’s budget is bigger than other programmes because it deals also with Negotiations and Discipline Management; Human Resource Development; Remuneration and Job Grading; Employee Benefits; Human Resource Planning and Performance Management for the entire public service.

The Department will revise the current Senior Management Service Performance Management and Development System. The SMS Performance Management and Development System is a process and requirements of performance management issued as a directive by the Minister in terms of Part III of chapter 4 of the Public Service Regulations.   The department will submit a model for the Graduate Recruitment Scheme to facilitate recruitment of graduates into the public service. This target is in line with the objective of National Development Plan. The NDP clearly stipulate that South Africa needs a strategy for recruiting dedicated young people, developing their skills and building an ethos of public service.

As the country is in dire need of technical skills, the department will support other departments to appoint 20 000 youths into learnership, internship and artisan programmes per annual and report on the number of their appointed. The Department intends monitoring average days taken to resolve disciplinary cases for national and provincial departments. Over the medium term, the department will introduce the Government Employee Housing Scheme in compliance with the 2015 public sector wage agreement. The scheme will assist employees in the public service to secure appropriate, affordable finance towards purchasing or upgrading their own property. The department will submit quarterly monitoring reports to the Minister.

1. Programme 4: Government’s Chief Information Officer

The purpose of the programme is to promote and manage the use of Information Communication Technology (ICT) as a strategic tool in the design and delivery of citizen-centred services within government by coordinating and consolidating Public Service Information Communication Technology policies, strategies, costs, risk assessments, as well as ICT Governance matters. The programme was introduced in order to develop, implement and monitor information communication technology (ICT) policies and norms and standards.

The budget allocation for Programme 4 accounts for 2.71 per cent share or R20.9 million of the total budget vote in 2016/17. In 2016/17, the allocation for Programme 4 decreased by -2.79 per cent in nominal terms, but in real terms, it decreased by -8.81 per cent between 2015/16 and 2016/17. The decrease in budget is because the Department had already improved connectivity of the Thusong Service Centres through improved Public Service ICT E-enablement, ICT Stakeholder Management and ICT Risk Management.

The budget will be spent on developing e-Enablement value propositions for two remaining prioritised services in the Department of Health and South African Police Service. The Department intends monitoring the improvement in the national and provincial departments in managing technology obsolescence through the implementation of the develop mechanisms. As it is department role to promote and manage the use of ICT, in this financial year the department will issue the ICT Cost Management Policy and Security Guidelines to the national and provincial departments. Workshops will be conducted to support departments with the implementation of the guidelines.

1. Programme 5: Service Delivery Support

The purpose of the programme is to manage and facilitate the improvement of service delivery in government by supporting and monitoring Operations Management and Service Delivery Planning. The programme has five sub-programme which are Operations Management, Service Delivery Support Programmes and Service Centres (Thusong), Complaints and Change Management (Batho Pele), Public Participation and Social Dialogue; and Community Development and Citizen Relations.

The budget allocation for Programme 5 decreased from R219.6 million (spent so far) in 2015/16 to R138.1 million in 2016/17, representing a nominal decrease of R81.5 million or -37.11 per cent. In real terms, the budget allocation of Programme 5 decreased by -41.01 per cent between 2015/16 and 2016/17. Programme 5 at 17.92 per cent share, represents the third largest share allocation of the total budget vote in 2016/17. Of the allocated budget on the programme, the department will transfer funds to National School of Government (R55.1 million) and Centre for Public Service Innovation (R32.1 million).

In as much as there is a decrease in this programme’s budget, it is commendable for Government to allocate this much to service delivery support in order for the Department to give technical support and advice to national, provincial and local government institutions who had had service delivery challenges. This will serve as both a preventative and remedial measure to service delivery challenges and protests.

The National Development Plan focuses extensively on improving service delivery across government. The department will support three prioritised departments to map Business Process and develop Standard Operating Procedures for their selected services as part of improving efficiency and effectiveness in the operations in the public service. Further, it establishes baseline data for the improvement of service delivery turnaround times for the three departments.

One of the department’s intervention over the medium term will be to assess the delivery improvement plans in national and provincial departments and make recommendations on improving them, including face to face meetings. The department will support six prioritised service departments to improve the quality and implementation of their Service Delivery Improvement Plans (SDIPs). An analysis will be conducted to assess the quality of SDIPs submitted to the department and compile an annual report to Cabinet. The department intends to support two prioritised service departments to develop and implement standards for Batho Pele Principles. Further, it will communicate and monitor standards for the user of services. 

1. Programme 6: Governance and Public Administration

The purpose of this programme is to manage and oversee the development of policies, strategies and programmes on Public Service ethics, integrity and leadership. Furthermore the programme envisages to ensure intergovernmental relations and macro organization of the State which include organizational design, strategic planning framework as well as monitor government intervention programmes and Human Resource Information System. The programme has five sub-programmes which are:  Human Resource Management Information Systems, Public Service Leadership Management, Organisational Design and Macro Organisation, Ethics and Integrity Management and International Relations and Government Intervention.

The budget allocation for Programme 6 increased from R272.9 million in 2015/16 to R282.3 million in 2016/17. In real terms the budget allocation decreased by -2.96 per cent between 2015/16 and 2016/17. Programme 6 accounts for the first largest allocation share, which is 36.63 per cent of the total budget vote in 2016/17. Of the budget allocated, the department will transfer R234.2 million to the Public Service Commission established in terms of chapter 10 of the Constitution.

Over the medium term, the department intends conducting capacity building workshops with 20 selected departments to provide implementation support on the Directive on Public Administration and Management Delegation. Moreover, the department will monitor over the medium term the improved adherence by national and provincial departments to the Directive on Public Administration and Management Delegations as measured by Management Performance Assessment Tool. Workshops will be conducted to support selected departments with the implementation of the Guidelines to clarify administrative roles and responsibilities when developing operational policy.

Over the medium term, the departments will be supported on the implementation of the Guideline on Mentoring and peer support mechanisms for senior managers. In this financial year, the department will pilot mechanisms to facilitate job mentoring for newly appointed senior managers in four departments. It is important for the department to constantly review the SMS competency assessment to ensure public service appoints senior managers who are competent and patriotic to serve the country. The Department will develop revised SMS competency assessment exercises which include appropriate instrument to measure emotional intelligence.

The NDP highlights that many of government’s best performing institutions are characterised by their stability of leadership and policy approach. As part of ensuring stability of leadership in the public service, the department will monitor and compile a statistical fact sheet on the average time spent by Heads of Department in a post. Strengthening human resource capacity is one of the objectives of the NDP, the department will implement the intervention strategy to support five departments to enhance their internal Human Resource Capacity.

Over the medium term, the department will provide technical support on the implementation of public service integrity management framework aimed in strengthening norms and standards for managing integrity and promoting ethical conduct in the public service. The technical support the department will provide includes hosting the inaugural learning network for ethics, engaging one on one with government departments and developing toolkits and other support materials.

The Department is gradually implementing some section of the Public Administration Management Act of 2014, and workshop will be conducted on the implementation of the Revised Determination on Other Remunerative Work to prohibit public servants from doing business with the State. The department will ensure continuous monitoring on this aspect of prohibiting employees from doing business with the State. Over the medium term, the department will analyse measures aimed at strengthening protection of the whistle blowers.

 

1. BUDGET TRANSFER TO DEPARTMENTAL ENTITIES AND PUBLIC SERVICE COMMISSION
   1. NATIONAL SCHOOL OF GOVERNMENT
      1. POLICY PRIORITIES 2016/17

The National School Government (NSG) derives its mandate from the Public Service Act. In terms of the Act the institution is mandated to provide training or effect the provision of training. The NSG’s aims to enhance capacity of all public servants at all levels to perform effectively and efficiently, develop and use assessment mechanisms to build confidence in the recruitment processes of the public service. Subsequently, the department develops training programmes that are specific to the needs of the public service with a view to addressing the skills shortages.

The focus of the NSG,s over the medium term will continue to be on transforming itself to replace the Public Administration Leadership and Management Academy. The school is gearing itself to meet the education, training and development needs of the public service as set out in the national development plan and the ministerial service delivery agreement, and contributing to outcome 12 of the 2014-2019 medium term strategic framework.

1. Budget analysis

The National School Government receives a transfer from budget vote 10 of Department of Public Service and Administration. The NSG received budget of R55.1 million in 2016/17 financial year as compared to R140.4 million for 2015/16. The budget has drastically decreased in this financial year. The school is currently planning for and recruiting appropriate personnel and other resources.

An appropriate funding model for the school will be developed by conducting research on how similar institutions are funded internationally. The school will make use of outsourced research services, which are expected to increase expenditure in agency and support/outsourced services at an average annual rate of 14.7 per cent over medium term, from R104.4 million to R15.6 million in 2018/19. The budget of the National School of Government is divided into two main divisions.

Table 2: National School of Government budget

 

Programme R'000	Revised Estimates 2015/16	Medium Term Expenditure Estimates
		2016/17	2017/18	2018/19
1 Administration	84.6	55.1	96.0	105.4
2. Public Sector Organisational and Staff Development	55.8	-	60.5	64.0
Total	140.4	55.1	156.6	169.5

Estimates of National Expenditure (2016)

1. PROGRAMMES

1. Programme 1: Administration

The purpose of the Administration Programme (Programme 1) is to facilitate overall management of the School and provides for responsibilities of the Principal, Branch Heads and other members of management. These responsibilities include providing centralised administrative, legal and office support service, human resource and financial management, communication, special projects, international relations, and internal controls and oversight.

Program 1 received budget allocation of R55.1 million in 2016/17 financial year as compared to R84.6 million in the 2015/16 financial year. The budget under this programme has been decreasing over the past years (2014/15 and 2015/16). The spending focus under the programme is mainly in designing phase for the implementation of student information system linked to the enterprise architecture framework and implement the ICT strategy towards improvement in business efficiency. The NSG intends reducing the vacancy rate for positions remaining vacant for more than 6 months to 8% before end of financial year. The School is committed to reducing the average number of days for debt collection to within 60 days.

1. Programme 2:  Public Sector Organisational and Staff Development

The Public Sector Organisational and Staff Development Programme (Programme 2) is responsible for facilitating transfer payments to the Training Trading Account for management development and training of public sector employees.

In terms of the Estimates of National Expenditure, the programme was not allocated any budget in this financial year. In 2015/16 financial year, the programme received budget allocation of R55.8 million. Programme 2 spent budget for their activities on funds generated from the Trade Account. The total revenue for the Trading Account is R211.2 million in 2016/17 financial year. 

The National Development Plan emphasises the importance of professionalising the public service. The NDP highlighted that building a skilled and professional public service requires a vision on how public servants experience and expertise will develop during their careers. The NSG plays a fundamental role in ensuring the public service is professionalized by providing compulsory induction to all public servants. In responding to the objectives of the NDP, the School has over the years designed curriculum programmes/courses aimed at building capacity in the public service. In this financial year, the School will design six curriculum programmes. The Department is monitor the implementation of designed curriculum programmes on a continuous basis. Training programmes include, among other the Compulsory Induction Programme, Breaking and Barrier to Entry Programme. The School will awards formal certificates of competence after completion of training as a way of encouraging and promoting a culture of learning in the public sector.

1. CENTRE FOR PUBLIC SERVICE INNOVATION
   1. Policy Priorities

The responsibility for the public sector innovation is vested in the Minister of Public Service and Administration, in terms of section 3(1)(i) of the Public Service Act (1994). The Act mandate the Centre for Public Service Innovation (CPSI) to unlock, entrench and nurture the culture of innovation within the public sector for improved performance and productivity. Therefore the Act position the CPSI to guide the process of unearthing and exploiting innovative, more efficient and effective solutions needed to ensure successful delivery on government priorities. The CPSI was in its formation established as a Section 21 Company.

1. Budget Allocation

The budget allocation for the CPSI is R32. 1 million for 2016/17 financial year as compared to the previous year with R29.0 million. The budget would increase with 2 per cent over medium term period. The National Treasury granted approval in terms of section 43 of the PFMA and Treasury Regulations section 6.3.1 (b), for the Department of Public Service and Administration to create a new transfer payment to the CPSI with effect form 1 April 2015. As a result, the CPSI has become an independent accountable entity receiving a transfer payment through the DPSA budget vote.  

1. PROGRAMMES

1. Programme 1: Administration

The programme provides strategic leadership, overall management of and support to the organisation. There are three sub-programmes under programme 1 which are Strategic Management, Corporate Resource Management and Office of the Chief Financial Officer. The budget allocated for programme 1 is R16.5 million as compared to R10.1 million in 2015/16 financial year. The spending focus on the programme is primarily intending to build capacity in promoting innovation in the public service. Over the past years, the centre shared corporate services with the Department of Public Service and Administration. An additional funding of R23 million over the medium term was provided to the Centre in the 2015 budget to gradually capacitate its corporate services unit. 

(b) Programme 2: Public Sector Innovation

The programme drives service delivery innovation in public sector in line with government priorities. There are three sub-programmes under programme 2, which are Research and Development, Solution Support and Incubation, and Enabling Environment. The budget allocated for the programme is R15.6 million in the 2016/17 financial year as compared to R15.0 million of 2015/16 financial year. There was a slight increase on the budget for the current financial year. More funding of R7.7 million has been allocated under sub-programme Enabling Environment.

Service delivery solutions are developed in partnerships with other government departments, non-government organisations, the private sector, academia and international entities. Over the medium term, the centre expects to test and pilot at least two new service delivery solutions per year and facilitate two training sessions per year for the public officials on public sector officials and other innovation partners. The awards are budgeted for at a projected R1.2 million per year over the medium term. Through the annual public sector innovation awards, which is competition for innovators, the centre seeks solutions to identified service delivery challenges.

1. PUBLIC SERVICE COMMISSION
   1. POLICY PRIORITIES FOR 2015/2020

The PSC’s mandate is to:

• Enhance labour relations in the public service through the timeous investigation of all properly referred grievances as and when cases are reported.
• Promote best practice in public service leadership and human resource management through quality research reports on an ongoing basis.
• Investigate and improve public administration practices by conducting audits and investigations into public administration practices and by making recommendations to departments on how to promote good governance and to issue directions regarding compliance with the Public Service Act (1994) annually.

 

 

 

The key strategic priorities of the PSC are explored below

1. Building an efficient, economic, effective and development-oriented public service

The PSC’s strategy is to build a people-centred, capable and ethical public service to ensure the optimal use of resources in order to deliver a service to the people of South Africa. This is possible only through the adherence to the Batho Pele principles.

1. Ensuring an efficient, economic, effective and development-oriented public service

The PSC ensures that the public service employs capable and professional employees that can improve the quality of service given to public service clients.

1. Ensuring a strengthened institutional capacity

The PSC envisaged to inculcate an independent, impartial and knowledge-based institution that would promote a development-oriented public service.

1. Implementing labour relations and public administration practices that cultivate effectiveness and efficiency

The PSC envisaged to build an institution that is impartial and responsive to grievances and complaints lodged in respect of the public service.

8.3.2 Budget Analysis

The PSC received a budget allocation of R234.2 million in 2016/17 financial year as compared to R226.0 million in 2015/16 financial year. Budget allocated will focus on strengthening human resource practices and management in the public service. Further, monitor the implementation of the financial disclosure framework and strengthening the financial disclosure system to combat crime. Compensation of employees accounts for 81% of the total budget. Reason for spending such percentage on compensation of employees was as a results of the PSC being a knowledge based institution, which conducts research internally instead of outsourcing its work. Currently the PSC has 312 funded posts in the organogram including the Commissioners as per the Constitution. Out of total funded post, 31 posts were vacant.  

 

 

Table 3: PSC budget

Programme R'000	Revised Estimates 2015/16	Medium Term Expenditure Estimates
		2016/17	2017/18	2018/19
1 Administration	98.8	105.8	113.9	121.0
2.  Leadership and Management Practices	40.9	40.4	42.4	45.6
3.  Monitoring and Evaluation	36.4	38.7	40.7	43.7
Integrity and Anti-Corruption	49.8	49.3	51.5	55.3
Total	226.0	234.2	248.4	265.7

Source: National Treasury (2016)

8.3.3 Programmes

(a) Programme 1: Administration

The purpose of the Administration Programme (Programme 1) is to provide overall management of the Commission and centralised support services. The budget for Programme 1 increased from R98.8 million in 2015/16 to R105.8 million in 2016/17. Over the medium term, the budget allocation for Programme 1 increases to R113.9 million in 2017/18 and R121.0 million in 2018/19.

(b) Programme 2: Leadership and Management Practices

The Leadership and Management Practices Programme (Programme 2) is responsible for promoting sound public service leadership, human resource management, labour relations and labour practices. Programme 2 received budget allocation of R40.4 million in 2016/17 financial year. In real terms the budget allocation of Programme 2 will increase over the medium term period with R42.4 million in 2017/18 and R45.6 million in 2018/19 financial years. The key cost driver is compensation of employees which accounts for 96.5 per cent of the total medium term budget.

Over the medium term, the Commission will focus on capacitating labour practitioners and all stakeholders in the grievance procedure and establishing a reference source for investigative reports. The Commission will evaluate the impact of recruitment and selection practices on the performance of the departments and senior managers.

1.  Programme 3: Monitoring and Evaluation

Programme 3: Monitoring and Evaluation establishes a high standard of service delivery, monitoring and good governance in the public service. Programme 3 received budget allocation of R38.7 million in 2016/17 financial year. In real terms the budget allocation of Programme 2 will increase over the medium term period with R40.7 in 2017/18 and R43.7 million in 2018/19 financial year. The spending focus under this programme is more on providing institutional assessments and programme evaluations that support policy and management decisions. Furthermore, it provides participative evaluations and evaluation on service delivery models.

1.  Programme 4: Integrity and Anti-Corruption

The Integrity and Anti-Corruption Programme (Programme 4) undertakes public administration investigations, promotes high standard of professional ethical conduct among public servants and contributes towards prevention and combating of corruption. The budget allocation for Programme 4 accounts for R49.3 million of the total budget vote in 2016/17 financial year. In 2016/17 financial year, the allocation for Programme 4 decreased as compared to R49.8 million in 2015/16. However, the budget will increase over the medium term with R51.5 million in 2017/18 and R55.3 in 2018/19 financial year.

In this programme, the Commission intends to prevent conflicts of interest by requiring members of the Senior Management Services to disclose their financial interests. The Commission aims to strengthen the financial disclosure system through extending financial disclosure requirements beyond the Senior Management Service level. A compulsory electronic system of financial disclosure (e-disclosure) has been implemented since beginning of 2015/16 financial year.

 

 

 

 

 

1. OBSERVATIONS AND FINDINGS

The Portfolio Committee identified the following matters in relation to the Budget Vote 10:

1. Department of Public Service and Administration
   1. The Committee commends the Department of Public Service and Administration on the progress made in implementing and coordinating interventions aimed at achieving an efficient, effective and development oriented public service. The Public Administration Management Act is one of the major milestones achieved by the Department in realising its mandate.
   2. The Committee welcomes the decision by the Department to develop an institutional model for the coordination of the Thusong Service Centres. The model is aimed at ensuring the Thusong Service Centres function effectively and contribute towards improved service delivery. The Committee urged the Department to ensure uniformity of the Thusong Service Centres across the country. The Community Development Workers’ role needs to be strengthened.
   3. The Committee further cautions the Department about the use of the consultants which are taking scarce resources and indicated that consultancy fees must be capped. In curbing the usage of consultants, the Portfolio Committee emphasised the importance of appointing competent officials.
   4. The Committee is concerned about the delays in the implementation of the Government Employee Housing Scheme (GEHS) since the Bargaining Council signed a multi-year agreement with the State. However, the Committee noted progress made thus far with regards to GEHS in the public service. GEHS will benefit employees from level 1 to 10. The Committee is of the view that R1200 is too little for the Government Employee Housing Scheme. 
   5. The Committee noted the initiative by the Department to prohibit government departments to counter offer when an employee has been appointed in another institutions. The Department, working with the National Treasury, will also monitor departments to ensure that they do not create unfunded additional posts in their organograms as this is illegal.
   6. The Committee clarified the reporting lines of Government Employees Medical Scheme (GEMS). The Committee will in this current financial year invite GEMS to account on its activities of ensuring healthcare of public servants.
   7. The Committee noted developments with regards to the creation of a database in responding to the audit outcomes pertaining to the Department and the entire public service.
   8. With regard to the employment of persons with disabilities and women in the public sector, the Department acknowledged that departments failing to meet the acceptable targets have to be provided with assistance.
   9. The Committee welcomed the policy framework of prohibiting public servants from doing business with government. Timeframes on the implementation of the Act after the formulation of Public Service Regulations are crucial to ensure that the government is committed to eliminating corruption and promoting good governance.
   10. The Committee supports the Department in conducting workshops on the implementation of the Revised Determination on Other Remunerative Work to prohibit public servants from doing business with the State.
   11. The Committee welcomes the Department in analysing whistle-blowing in the public service to inform the development of a policy approach for the protection of whistle blowers within the public service.
   12. The Committee is pleased with new policies introduced by the Department in building a capable and developmental state. The Department was encouraged to continue to create innovative policies to improve quality of the services by the public sector.
   13. The Committee commends the Department in ensuring that government departments provide internship programmes to 20 000 young people and absorbed some into the public service. The Committee is however concerned about nepotism, harassment and favouritism in these internship programmes. This needs to be dealt with to ensure transparent and fair processes of appointment of young people in the public service. The Department has to ensure that appointments into the internship programmes is aligned with the career paths of participants and that they are equipped with the necessary skills and knowledge.

 

1. National School of Government
   1. The Committee notes the reduction of the budget allocation for Programme 2: Public Sector Organisational and Staff Development. Over the medium term, the National Treasury is anticipated to make an allocation that would enable the National School of Government to intensify training and development in the public sector.
   2. Technical and strategic positions have to be prioritised. Moreover, 50% of women in senior management levels and 2% of people with disabilities have to be prioritised.
   3. Curriculum design has to respond positively to the mandate of the National Development Plan which aims to professionalise the public service. There is a need for the National School of Government to continuously redesign its curriculum to respond to the ever-changing training and development needs amongst public servants.
   4. The Committee notes that the School has begun to enrol e-learning programmes in the public sector. Over 20 000 officials enrolled their training and development online.
   5. The Committee urged the National School of Government to swiftly move towards provision of e-learning network as part of making training and development accessible to all public servants. E-learning will save government and the School a lot of money as it will eliminate costs associated with classroom training.
   6. The Committee welcomes and notes the extension of the mandate of the National School of Government in training and developing skills at local government municipalities. The Committee is concerned that the National School of Government is unable to provide or cover training for 1.3 million public servants in the public service. The extension of the training and development mandate to the local sphere of government means that the School has to increase its capacity.
   7. The new model of recovering training debt from the recipient departments seems to be yielding results as the Committee felt that 60 days was too long to wait for payment when departments are required to pay service providers within 30 days after receipt of invoices.
   8. The Committee welcomed initiative by the National School of Government to utilise experienced and qualified public servants to impart knowledge and skills to learners to be enrolled with it. The move is welcome if it will reduce the cost of consultants that are hired to provide training courses.

 

1. Centre for Public Service Innovation
   1. The Committee encouraged the Centre to intensify and enhance its innovation towards contributing immensely in building an efficient, effective and development-oriented public service.
   2. The Committee notes and commends the Eastern Cape Premiers’ Office in establishing an innovations unit in his office and requests other provinces to follow suit.
   3. The Committee observed a need for the CPSI to assist government in implementation of the chapter 13 of the National Development Plan in building a capable and developmental state.

 

1. Public Service Commission
   1. The Committee notes the consistent performance of the Public Service Commission in executing its constitutional mandate. We further note the huge improvement of its work in assisting several Parliamentary Committees in exercising their oversight and accountability over the executive. The Committee urges the PSC to consistently remain relevant, accurate and reliable in investigating, monitoring and evaluating the organisation and administration of the public service.
   2. The Management Performance Assessment Tools reports released by the Department of Planning Monitoring and Evaluation identify Human Resources in the public service as a great concern which need urgent attention. There is a need to find lasting solutions on the root causes.
   3. The Committee is of the view that the PSC has to shorten the period taken in dealing with grievances and complaints to ensure that they are addressed faster, better and within reasonable time.
   4. The Committee is concerned about the time taken to fill vacancies of Public Service Commissioners.

 

1. RECOMMENDATIONS

The Portfolio Committee recommends that the Minister of the Department Public Service and Administration ensure the following:

1. The Department should ensure that it implements with immediate effect the institutional model emulated from the Maponya Mall regarding the Thusong Service Centres after it has been approved by Cabinet so that the location of the Centres and of the Community Development Workers (CDWs) should be determined.
2. The Committee recommends that the department should review the Government Employee Housing Scheme (GEHS) policy in order to promote home ownership among the public servants. The Department should work closely with the Department of Human Settlements and the National Housing Finance Corporation to ensure linkages with the Finance Linked Individual Subsidy Program (FLISP) and the Government Employee Housing Scheme.
3. The Department should prioritise and enhance e-Governance as an important tool for improving service delivery. The department and other relevant stakeholders should regulate the cost of ICT in government so that it is standardised and to allow for enough funds to be channelled towards e-Governance.  
4. Young graduates and interns should undergo a structured programme in order to correctly assign them tasks relevant to their qualifications so that they gain relevant experience.
5. The Department should review the Public Service Act of 1994 in order to cater for all essential services personnel and to be integrated as members of a single public service.

National School of Government

1. The School should explore the possibility of collaboration with Statistics South Africa (Stats SA) in the latter’s collaboration with the University of Stellenbosch in promoting the importance of statistics in policy making and decision-making. The School can put to good use the statistics on demographics, skills and education in relation to good governance; with a view to introducing courses relevant to the needs of the public service.

 

1. CONCLUSION

The Department of Public Service and Administration with its entities play crucial role in building a state that is capable of realising developmental and transformative role. The NDP highlighted key areas that the Department must focus on such as stabilising the political-administrative interface and making the public service career of choice. The DPSA and its entities Strategic Plans and Annual Performance Plans are aligned in achieving the goals and aspirations of the NDP. The Portfolio Committee noted the progress made in implementing and coordinating interventions aimed at achieving an efficient, effective and development oriented public service. The work of the Public Service Commission assists Parliament Committees to conduct effective oversight. The National School of Government is gradually progressing towards transforming the public service in terms of skills and is very innovative in finding new solutions to challenges. The CPSI has assisted a lot in improving the way of doing things in the public service and this is highly appreciated.

 

The Portfolio Committee recommends as follows:

10.1      That the House adopts and approve the Budget Vote 10 of the Department of Public Service and Administration

 

Report to be considered