ATC221020: Budgetary Review And Recommendations Report (BRRR) of the Portfolio Committee on Public Service and Administration: Vote 11 of the Department of Public Service And Administration (DPSA), and the Centre for Public Service Innovation (CPSI) 2021/2022, Dated 19 October 2022

Public Service and Administration

Budgetary Review And Recommendations Report (BRRR) of the Portfolio Committee on Public Service and Administration: Vote 11 of the Department of Public Service And Administration (DPSA), and the Centre for Public Service Innovation (CPSI) 2021/2022, Dated 19 October 2022

 

1. BACKGROUND

The Portfolio Committee on Public Service and Administration (hereinafter referred to as the Portfolio Committee) having considered the directive of the National Assembly, which is in line with Section 5 of the Money Bills Amendment Procedures and Related Matters Act, No. 9 of 2009 to consider and report on the Annual Reports of the Department of Public Service and Administration, and Centre for Public Service Innovation on 12 October 2022 and reports as follows:

 

1. INTRODUCTION

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

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

 

1. PURPOSE OF THE BUDGETARY REVIEW AND RECOMMENDATIONS REPORT

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

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

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

 

3.1 Method

The Portfolio Committee on Public Service and Administration compiled the 2021/22 BRRR using the following documents:

• The National Development Plan: Vision for 2030.
• Medium Term Strategic Framework 2019 - 2024.
• State of the Nation Address 2021.
• Strategic Plans of the Department and CPSI.
• National Treasury (2021) 4th Quarter Expenditure 2021/22 Financial Year.
• Annual Performance Plans of the Department and CPSI 2021/22.
• Annual Reports 2021/22 of the Department and CPSI.
• Auditor-General South Africa’s outcomes of audit findings 2021/22.
• The Portfolio Committee also met with the leadership and management of the Department and CPSI.

 

1. NATIONAL DEVELOPMENT PLAN VISION 2030

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

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

 

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

 

1. MANDATE OF THE DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION

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

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

 

5.1 Strategic Goals

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

 

1. A stable political-administrative interface

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

 

1. A public service that is a career of choice

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

 

1. Efficient and effective management and operations systems

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

 

1. Increased responsiveness of public servants and accountability to citizens

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

 

1. Improved mechanisms to promote ethical behaviour in the public

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

 

 

1. STATE OF THE NATION ADDRESS (SONA) 2021

The key priorities identified in the SONA 2021 for the sector were:

 

6.1 Fighting corruption to strengthen the State

First and foremost the Address highlighted overriding priorities of 2021, which are defeating the coronavirus pandemic; accelerating economic recovery; implementing economic reforms to create sustainable jobs and drive inclusive growth; and fighting corruption and strengthening the State. The Address highlighted that Government “had started implementation of the National Anti-Corruption Strategy, which lays the basis for a comprehensive and integrated society-wide response to corruption. Government is set to appoint “the members of the National Anti-Corruption Advisory Council, which is a multi-sectoral body that will oversee the initial implementation of the strategy and the establishment of an independent statutory anti-corruption body that reports to Parliament.

 

6.2 Building a capable State dependent on advancing honesty, ethics and integrity

Building a capable State is still another area prioritised by Government. In 2019, the President called on all public servants to serve South Africans with diligence and to adhere to the Batho Pele principles of putting the people first. He further indicated that the capacity of the state will be built by actions including:

 

• Firstly, strengthening the technical capacity in government to ensure that projects move faster, building a pool of engineers, project managers, spatial planners and quantity surveyors – an action team that can make things happen faster on the ground.

 

• Secondly, improving the capabilities of public servants through the introduction of a suite of compulsory courses by the National School of Government, covering areas like ethics and anticorruption, senior management and supply chain management, and deployment of managers to the coalface to strengthen service delivery.

 

6.3 Enhanced accountability through Ministerial Performance Agreements

The President reported that in October 2020 he had signed off Ministerial Performance Agreements with the Executive in order to enhance accountability. This is also not a new phenomenon for the Executive. Non-performance is usually addressed through reshuffling not with a view to dismissing, but to shift the Member of the Executive to another portfolio. Those who would be prone to not deliver as expected of them would probably still commute to another portfolio with the similar attitude. However, Parliament is there to demand accountability from the Executive, serving the checks and balances. The nature of the questions asked by Parliament to the Executive will give a hint to the President concerning who is complying or not complying with society’s satisfaction levels through Parliament’s ability to ask probing, not sweetener, questions.

 

6.4 Professionalism to inculcate public confidence

The above are in line with the vision of the National Development Plan: Public service – Key medium-term goals for 2019 - sub-outcome 2, which stated that the public service must have sufficient technical and specialist professional skills. It is also in line with the spirit and letter of the Medium Term Strategic Framework 2019-24, which states the following objectives for Priority 4:  Strengthen Governance and Public Institutions:

 

• Outcome: Improved governance and intergovernmental and engagement with citizens.
• Outcome: Honest and capable state with professional and meritocratic public servants.
• Outcome: Professional and ethical Public Service.
• Outcome: Developmental state and compact with citizens, responsiveness, public trust.
• Outcome: Strengthen relations and efficiency in government.

 

Skills deficits and insufficient attention to the role of the State in reproducing the skills it needs remain a challenge. Monitoring and evaluation of the implementation of policies are important to ensure that “state institutions are well-run and effectively coordinated, run by professionals who are committed to the public good and capable of delivering consistently high-quality services, while prioritising economic growth and reduced poverty and inequality.

 

• Accordingly, the strategic focus of the Department for 2021/22 includes: Developing regulations to enable the full implementation of the Public Administration Management Act (PAMA, 2014).
• Reviewing the Public Service Act and related policies, where required, which will be done concurrently with the development of the Single Public Administration Bill.
• Improving implementation of administrative policies and enforcing compliance where required.
• Improving the implementation of the Batho Pele principles by ensuring that there are measurable standards in place.
• Stabilising the Public Service by restoring stability and credibility in state institutions.
• Fighting corruption by inculcating a culture of accountability, ethical and professional standards of all civil servants, as well as strengthening discipline management within the Public Service.

 

The strategic priorities of the Department align with the national strategic imperatives as outlined earlier on in the brief. The implementation of these strategic priorities will put service delivery on a better level, and Parliament’s oversight can see these priorities effectively taken through.

 

7. STRATEGIC PRIORITIES OF THE DEPARTMENT

 

As the lead Department pursuant to Priority 1 of the 2019-2024 MTSF, i.e. the creation of a capable, ethical and developmental State, the Department of Public Service and Administration, in its Strategic Plan and 2021/22 Annual Performance Plan, identified the following five strategic outcomes:

 

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

 

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

 

7.2 Stabilising the Public Service

 

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

 

7.3 Intensifying the fight against corruption

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

 

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

 

7.4 Implementation of administrative policies

 

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

 

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

 

7.5 Improved implementation of Batho Pele Principles

 

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

 

 

 

 

1. DEPARTMENT AND ENTITIES’ PROGRAMME PERFORMANCE  

8.1      Department of Public Service and Administration

8.1.1   Budget Allocated and Expenditure 2021/22

The Department of Public Service and Administration spent R457.6 million (93 per cent) of its final 2021/22 budget allocation of R531.7 million as at the end of March 2022, whilst achieving 20 of the 25 annual targets resulting in an 80% achievement. The 5 (20 %) targets that have not been achieved were as a result of delays in the consultation processes on the amendment bills, delays in the procurement processes for service providers for the development of the Job Evaluation System and the Personnel Expenditure Review as well.

 

The main cost drivers of the total Vote budget were: Administration (R220.5 million); due to work and consultation done to amend legislation (PAMA and the Public Service Act); Government Service Access and Improvement (R104.2 million) due to inspections and monitoring and providing quality checks on Service Delivery Improvement Plans; Negotiations, Remuneration and Labour Relations (R68.1 million) due to the advice and support provided on Labour Relations and Dispute related matters; Human Resource Management and Development (R43.6 million) due to the Occupational Classification System and other human resource related matters  and eGovernment Services and Information Management with (R21.2 million).

 

The number of posts on the establishment of the Department decreased in the 2021/2022 reporting year from 433 in 2020/2021 to 419 (excluding the Minister and Deputy Minister) and 355 of these posts were filled posts, compared to the 365 filled posts in the 2020/2021 report. The Department spent 92, 7 % of the total voted expenditure for compensation. The largest percentage of personnel cost relates to the compensation of employees on salary levels 13 and higher (Senior Management), during the reporting period. The vacancy rate was at 14 percent in the reporting year, which was more high at the SMS Level with 15,7 percent as compared to the previous year. 

 

Due to restructuring of the organisational structure on MICRO structure level with effect from 1 April 2021, vacant posts on Levels below SMS level’s filling was delayed, subject to the confirmation of grading levels through a Job Evaluation process. There were 32 posts out of a total of 419 posts subjected to job evaluation during the period under review; the majority of these jobs (71, 8%) were on salary levels 9 – 12.  In terms of gender representative, the Department has females at Senior Management Service level (Level 13-16) decreased from 48.7% in the 2020/21 reporting period to 44% in 2021/22. Reduction of female in SMS level means the Department has to prioritise appointing competent women in level 13-16 in order to reach national target of 50%.  The department met the 2% national target of employment of people living with disabilities in previous reporting periods. However, the percentage people living with disabilities have decreased from 2, 5% (2020/2021) to 2, 25% at the end of the current reporting period (2021/2022), still exceeding the national target with 0, 25%.

 

Total expenditure on Compensation of Employees amounted to R268, 177 million or 92.7% of the final budget of R289, 439 million. The underspending is mainly due to unfilled vacant posts throughout the department. The Department did not incur any unauthorised, fruitless and wasteful expenditure during the year under review.  Irregular expenditure amounting to R10 715.13 was incurred in relation to a prior financial year 2020/21. The case is in respect of an invoice paid for services rendered after the contract between the service provider and department has expired.

 

 Table 1: Budget and expenditure summary

2021/22				2020/21
Programme	Final Appropriation R’000	Actual Expenditure R’000	(Over)/Under Expenditure R’000	Final Appropriation R’000	Actual Expenditure R’000	Over)/Under Expenditure R’000
Administration	242 330	220 468	21 862	220 633	210 863	9 770
Human Resource management and Development	47 187	43 611	3 576	47 011	44 280	2 731
Negotiations, Remuneration and Labour Relations	99 874	68 129	31 745	69 320	58 274	11 046
eGovernment Services and Information Management	34 292	21 233	13 059	22 933	20 746	2 187
Government Service Access and Improvement	108 001	104 164	3 837	108 998	96 423	12 575
TOTAL	531 684	457 605	74 079	468 895	430 586	38 309

Source: DPSA (2022)

1. Programme Performance

The Department has six programmes, which are as follows:

 

(a) Programme 1: Administration

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

 

The programme has five predetermined targets in 2021/22 financial year. The Department achieved three targets and two were not achieved. This programme reported expenditure of R220.5 million or 95 per cent of its 2021/22 available budget of R242.3 million as at the end of the fourth quarter of 2021/22. The main cost drivers were Corporate Services (R83.5 million), due to the transversal nature of the Department; Office Accommodation (R57.4 million) and the Ministry (R24.8 million), due to the legislation being developed during the period under review. The reported expenditure was R21, 9 million or 5.3 per cent less than the projected expenditure of R242.3 million for the period under review.  

 

The Departments was unable to achieve targets on the revised Public Service Amendment Bill which has not been submitted to Cabinet. Moreover, consultation on Public Administration Management Amendment Bill were not achieved.

 

 (b) Programme 2: Human Resource Management and Development

 

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

 

The programme has four predetermined targets in 2021/22 financial year. The Department achieved three targets and one was not achieved. This programme reported expenditure of R43.6 million or 96 per cent of its 2021/22 available budget of R47.2 million as at the end of the fourth quarter of 2021/22. The main cost drivers were Human Resource Planning, Employment and Performance Management (R14.3 million); Transformation and Workplace Environment Management (R9.1 million); and Human Resource Development (R8.5 million).

 

A legislative Framework issued and technical advice and guidance was provided to departments support public service business continuity during the state of disaster as a result of Covid-19 pandemic. The Department refined the Occupational Dictionary that provides for occupations to be grouped into 9 major groups and to be divided into sub-categories up to the level of individual occupations. The Department has quality assured approximately fifty appointments of Director-Generals and Deputy Director-Generals prior to such appointments serving at Cabinet.

 

The Department developed a plan on the development of the State Capacity/skills aspect of the joint up plan for selected districts and metros. However, the Department was unable to achieve target on the legislative framework to institutionalise mandatory in-service training framework by the National School of Government was developed however has not yet been issued.   

 

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

 

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

 

The programme has seven predetermined targets in 2021/22 financial year. The Department achieved five targets and two were not achieved. This programme reported expenditure of R68.1 million or 84 per cent of its 2021/22 available budget of R99.9 million as at the end of the fourth quarter of 2021/22. The main cost drivers were Remuneration, Employment Conditions and HR Systems (R20.1 million), Government Employees Housing Scheme & Project Management Office (R10.1 million) and Organisational Development, Job Grading and Macro Organisation of the State (R13.2 million); and Negotiations, Labour Relations and Dispute Management (R6.9 million).

 

The Department led negotiations on behalf of the State as the Employer in two bargaining councils. A single Public Service Coordinating Bargaining Council 1 of 2021 was signed with three collective agreements which among was a monthly non-pensionable allowance ranging from R1220 and a 1.5% pensionable once-off salary adjustment to all employees employed in the public service. The Department also provided advice and support on Labour Relations and Dispute related matters. During the year under review, some of the key disputes were dealt with were disputes on 2021/2022 wage negotiations.

 

The implementation of Resolution 7 of 2015 on the Government Employees Housing Scheme continues and as 31 March 2022, 743 895 employees were receiving the new housing. Approximately 6 457 employees were still receiving the old housing allowance of R900. A total of 204 270 employees who do not own houses were receiving GEHS Housing Allowance for tenants. These employees have their housing allowance or a portion of it diverted and accumulated into Individual Linked Saving Facility (ILSF). The Department was unable to finalise the Personnel Expenditure Review and the job evaluation system for the public service was not developed.   

 

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

 

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

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

 

The programme has three predetermined targets in 2021/22 financial year. The Department achieved all targets. This programme reported expenditure of R21.2 million or 81 per cent of its 2021/22 available budget of R34.3 million as at the end of the fourth quarter of 2021/22. The main cost drivers were E-enablement and ICT Service Infrastructure Management (R6.7 million), ICT Governance and Management (R5.6 million), Management: e-Government Services and Information Management (R3.1 million) and Information and Stakeholder Management (R2.7 million).

 

The Department has achieved the National e-Government Strategy and issued Legislative Frameworks to institutionalise the strategy. The Digital Government Policy Framework was developed and consulted on in the GSCID Cluster. The intention of the policy framework is to improve coordination between the various role-players within the space of e-government (Digital Government) in the public service. A catalogue of manual and automated services was developed and drafted regulations for approval which are aimed at ensuring that departments maintain a catalogue of services and automate. The Public Service Information Security Standard was developed to facilitate the secured use of public service information assets to encourage the adoption of ICT as a strategic tool in the public service as to improve Confidentiality, Integrity and Availability of public service data and information particularly during this digital where the increased prevalence of cyber security incidents. 

 

(e) Programme 5: Government Services Access and Improvement

Programme 5: Government Service Access and Improvement (formerly known as the Service Delivery Support Programme) manages and facilitates the improvement of service delivery in Government. The programme has six predetermined targets in 2021/22 financial year. The Department achieved all targets. This programme reported expenditure of R104.2 million or 98 per cent of its 2021/22 available budget of R108.0 million as at the end of the fourth quarter of 2021/22. The main cost drivers were Centre for Public Service Innovation (R41.5 million) which is transfer to the entity, Service Access (R21.1 million), Service Delivery Improvement, Citizen Relations and Public Participation (R13.7 million) International Co-operation and Stakeholder Relations (R13.1 million) and Operations Management (R12.2 million).

 

The Department has developed the guide on the implementation of the Organisational Functionality Assessment Tool and a Template. The Department issued a directive for the implementation of the tool by departments from 1 April 2022. Departments are required to conduct organisational functionality assessments at least once in every 3 years. Furthermore, the Department has conducted 3-year pilot of the Business Process Management Programme focuses on business process improvement and modernisation of services in selected priority departments.

 

The Batho Pele Revitalisation strategy was endorsed by Cabinet for implementation. The Department continue to intensify and promote effective implementation of the Batho Pele Programme. During the year under review, the Guideline on Public Participation were revised and consulted on its stakeholders. The Guidelines will support the implementation of the Framework on Public Participation is implemented effectively.    

 

 

 

 

1. CENTRE FOR PUBLIC SERVICE INNOVATION

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

 

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

 

Table 2: CPSI 2021/22 expenditure per programme

2021/22				2020/21
Programme	Final Appropriation R’000	Actual Expenditure R’000	(Over)/Under Expenditure R’000	Final Appropriation R’000	Actual Expenditure R’000	Over)/Under Expenditure R’000
Administration	20 149	16 149	3 186	18 944	13 821	5 123
Public Sector Innovation	21 304	16 817	4 487	15 890	15 890	2 180
TOTAL	41 453	33 780	7 673	34 834	27 531	7 303

Source: CPSI (2022)

 

The final expenditure as at end of 2021/22 financial year amounted to R33.8 million or 81.5 per cent of the final budget of R41.4 million. An amount of R19.1 million (86.2 per cent) was spent on compensation of employees against the final appropriation of R22.2 million.  The underspending of R3.1 million was mainly due to five vacant posts in the organisation, three were filled in March 2022. The Chief Executive Officer and Human Resource Management Officer post will be filled during the 2022/23 financial year.

 

The CPSI comprises of 30 permanent posts (18 posts in the Administration and 12 posts in the Public Sector Innovation Programme) plus two posts additional to the establishment. Due to vacancies and inadequate capacity, some staff members are fulfilling multiple functions. The CPSI had no incidents of unauthorised, fruitless and wasteful expenditure.  

 

1. Programme 1: Administration

This programme provides strategic leadership, overall management and support to the organisation. The programme achieved its targets set for the financial year as follows; four quarterly financial and non-financial reports submitted to the Minister, DPSA, National Treasury and Department of Planning, Monitoring and Evaluation (DPME) as per required timeframes. All (100%) of external audit recommendations were implemented.

 

1.   Programme 2: Public Sector Innovation

This programme drives service delivery innovation in the public sector in line with Government priorities. The programme set three targets and all were achieved which were as follows: five innovation solutions (3 research initiative and 2 development initiative), 10 knowledge platforms and 2 innovative projects replicated. 

 

1. AUDITOR-GENERAL OUTCOMES

10.1 Audit Opinion

The Auditor-General audited the financial statements of the Department of Public Service and Administration set out on pages 97 to 139 which comprise the appropriation statement, statement of financial position as at 31 March 2022. The Department’s financial performance and cash flows for the 2021/22 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 performed procedure to determine whether the reported performance information was properly presented and whether performance was consistent with the approved performance planning documents. The AG performed further procedures to determine whether the measures and related targets were measurable and relevant, assessed the reliability of the reported performance information to determine whether its valid, accurate and complete. The AG did not identify any material findings on the usefulness and reliability of the reported performance information.

 

10. 2 Compliance with legislation

In accordance with the PAA and the general notice issued in terms thereof, Auditor-General have a responsibility to report material findings on the compliance of the Department with specific matters in key legislation. Auditor-General performed procedures to identity findings but not to gather evidence to express assurance. 

 

10.3 Internal control

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

 

1. OBSERVATIONS AND KEY FINDINGS

The Committee made the following observations:

 

1. The Committee notes and commends the Department of Public Service and Administration and Centre for Public Service Innovation for receiving clean audits for 2021/22 financial year. The Department had managed to achieve 80% of its planned targets in the 2021/22 Annual Performance Plan. However, the Committee has encouraged the Department to achieve all targets.

 

1. The Committee notes the progress made thus far with developments towards amending the Public Service Act of 1994, which among others, seeks to transfer powers of the human resource management from the Executive Authority to the Accounting Officers. After a protracted process, the consultation process at the Public Sector Coordinating Bargaining Council (PSCBC) and NEDLAC has still not been yet resolved and is still ongoing. As a result, the Amended Bill could not be processed to Cabinet as was planned. The Committee acknowledged the delays caused by the stakeholders in the consultation process to finalise amendments to the Public Service Act. 

 

1. The Committee notes the progress made thus far with amendment of the Public Administration Management Act (PAMA), which intends to accelerate implementation and improve service delivery. The PAMA also seeks to eliminate fragmented approach to development and strengthen coordination across the public sector. The Committee notes that after a protracted process, the consultation process at the Public Sector Coordinating Bargaining Council (PSCBC) and NEDLAC has still not been yet resolved and is still ongoing. The Committee acknowledged the delays caused by the stakeholders in the consultation process to finalise amendments to the PAMA.

 

1. The Committee notes progress thus far pertaining to the finalisation of a Guide to implement lifestyle audits aimed at preventing and detecting fraud and corruption in the public service. The Committee notes that the determination of lifestyles is the prerogative of Accounting Officers as enshrined in the Public Service Regulations, 2016, regulation 22. The Committee was concern of slow pace of the implementation of lifestyle audits across all government departments with clear time frames including the Department of Public Service and Administration.

 

1. The Committee further notes the efforts made by the Department in improving the management of discipline within the public service, in order to hasten the resolution of disciplinary cases and consequence management through disciplinary cases. The Committee will continue to monitor implementation of the disciplinary cases in the public service.

 

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

 

1. The Committee further commends the Department for not incurring unauthorised, irregular, fruitless and wasteful expenditure in 2021/22 financial year. The Committee urge the Department and the CPSI maintaining a similar trend on unauthorised, irregular, fruitless and wasteful expenditure in the upcoming financial years. The Committee notes with concerned the vacancy rate that contributed towards the underspending.

 

1. The Department has experienced reduction of gender representative of female at SMS level from 48.7%- in 2020/21 to 44% in 2021/22. The Committee encouraged the Department to swiftly address gender equity targets when filling funded vacancies for SMS posts.

 

1. The Department has to continue with its efforts to revise the Human Resource Management and Development Strategy which was lastly revised in 2002.

 

1. In light of the Auditor-General’s audit findings, the Department and the Centre for Public Service Innovation were encouraged to maintain sound internal control which led both institutions to obtain clean audit outcomes.

 

Centre for Public Service Innovation

1. The Committee notes the efficacy of the innovation projects and outcomes within the Centre and the public service. 

 

1. The CPSI initiated a new development project with the Northern Cape Office of the Premier to develop a virtual Thusong Service Centre and Monitoring System. The Committee urged the CPSI to replicate this initiative to all provinces once its fully piloted in the Northern Cape Province. The Committee envisaged to conduct oversight in the Northern Cape province to physically oversee the virtual Thusong Service Centre and Monitoring System and all innovative projects initiated by the CPSI across the provinces.   

 

1. The CPSI hosted a #PSIHack 2022 focusing on public sector service delivery challenges. The Committee fully support the #PSIHack to unearth innovative solutions aimed at resolving service delivery challenges across all the sectors.

 

1. The Committee notes that CPSI has developed approved organisational structure and was in discussion with the National Treasury to fund the structure. The Committee supports the CPSI efforts to expand its reach on innovation projects in the public sector by strengthening its workforce to be able to cope with the demand.    

 

 

1. RECOMMENDATIONS

The following recommendations are proposed:

1. The Department should speed up consultative process with Public Service Coordination Bargaining Council (PSCBC) and NEDLAC on the legislative reform concerning the Public Administration Management Act of 2014 in order to ensure that operational systems are updated and strengthened. The Department should provide an update on the amendment bi-annually to the Committee by March 2023.  

 

1. The Department should fast-track consultative process with PSCBC and NEDLAC with the aim to finalise amendments to the Public Service Act of 1994 aimed at broadening its scope by incorporating the role of the Director-General in the Presidency to support the President, furthermore seeks to transfer powers of the human resource management from the Executive Authority to the Accounting Officers. The Department should provide progress report on the finalisation of the amendment bi-annually to the Committee by March 2023.

 

1. The Department should encourage departments to commence with the implementation of the Guideliness on the lifestyle audits, aimed at preventing and detecting fraud and corruption in the public service. The Department should provide timeframes to all accounting officers as part of the rollout strategy and ensuring uniformity in the public service.  

 

1. The Department should continue to ensure sound internal controls in order to maintain good audit outcomes for the future financial years.

 

1. The Department should revisit the policy on decentralised discipline management in the public service to avoid the tedious and sometimes futile process of reminding other departments to take care of misconduct cases not finalised within the regulated period. Since the Department is dealing with amendments to relevant legislation, this is the opportune time to amend legislation in favour of discipline management being centralised within the Department.

 

1. The Department together with the Department of Planning, Monitoring and Evaluation should review the Policy on Performance Management Development System for the DGs and HOD’s in the public service as per the Auditor-General South Africa recommendation. Both departments should review matters identified in the PMDS policy such as weight given on Key Responsibility Areas and Acting DG’s/HOD’s to be included in the PMDS for performance measurement purposes especially when acting for more than six months.

 

 

1.  

 

1. The Department and the Ministry have to speed up the permanent appointment of the Executive Director of the Centre for Public Service Innovation.

 

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

 

1. The Committee should conduct oversight in the Northern Cape province to physically oversee the virtual Thusong Service Centre and Monitoring System and all innovative projects initiated by the CPSI across the provinces.  

  

1. CONCLUSION

The Department of Public Service and Administration has in the 2021/22 financial year continued to implement and coordinate interventions aimed at achieving an efficient, effective and development-oriented public service, which is an essential element of a capable and developmental state. Accountability within the Department has improved with responsible leadership and management. The Department and the CPSI must continue to maintain sound internal controls for future financial years and lead by example.

 

Report to be considered