ATC120425: Report Strategic Plan & Budget Vote 12, dated 25 April 2012
Public Service and Administration
Report of the Portfolio Committee on Public Service and Administration on the strategic plan and Budget Vote 12: Department of Public Service and Administration, dated 25 April 2012
Report of the Portfolio Committee on Public Service and Administration on the strategic plan and Budget Vote 12: Department of Public Service and Administration, dated 25 April 2012
Having considered the strategic plans and the Budget Vote 12 of the Department of Public Service and Administration and its entities, the Portfolio Committee on Public Service and Administration reports as follows:
1. Introduction
The mandate of the Department of Public Service and Administration is to oversee the overall functioning and organisation of Government. Section 42 (3) of the Constitution of South Africa (1996) states that the National Assembly is elected to represent the people and to ensure government by the people under the Constitution. The National Assembly does this be choosing the President, by providing a national forum for public consideration of issues, by passing legislation and by scrutinising and overseeing executive action.
In terms of section 10 (1) (c) of the Money Bills Amendment Procedures and Related Matters Act, No 9 of 2009, the relevant members of Cabinet must table updated strategic plans for each department, public entity or institution, which must be referred to the relevant committee for consideration and report. Budget Vote 12 was referred on 30 March 2012 to the Portfolio Committee on Public Service and Administration (DPSA), hereinafter referred to as the Committee, for consideration and reporting.
In line with its constitutional responsibility of overseeing executive action, the Committee received briefings from the Department of Public Service and Administration, Public Service Commission, State Information Technology Agency and Public Administration Leadership and Management Academy .
The objective of this report is to encapsulate key issues from the presentations made during the Budget Vote 12 hearings.
2. Overview of Budget Vote 12 for the 2011/12 Financial Year
The Department of Public Service and Administration has a mandate in the areas of transforming and modernising the Public Service; overseeing changes to the structure of the Public Service; and establishing norms and standards for human resource management and development, conditions of service, labour relations, information technology and service delivery. Over the past decade, this mandate has evolved from policy development to consolidation and implementation. Service delivery improvement and accountability remain central to the Departments core business, with an emphasis on improving the quality of service delivery in rural, poor and marginalised communities and alleviating poverty in general.
2.1 Analysis of the Strategic Priorities for 2012/13
Key strategic goals of the vote are as follows:
2.1.1 Administration and resourcing in the Public Service
The Department is presently developing an integrated financial management system (IFMS) in order to phase out the PERSAL System. The system is aimed at consolidating and replacing the ageing financial and human resource systems. The IFMS will assist in enhancing the integrity and effectiveness of the Public Service, for example, improving the accuracy of statistics on the vacancy rate and the actual staff complement of the Public Service.
2.1.2 Performance Management
The Department has developed policies and guidelines for governance and management structures. Proper implementation of these guidelines would see the Department providing support to other government departments that are lacking in performance. The Department conducted an analysis of organisational and senior management service skills gaps in government departments. Greater focus was targeted at developing policy interventions to improve the recruitment process in the Public Service. In light of this, all senior managers will be obliged to sign performance agreements which will facilitate the assessment of these managers. However, the Committee is concerned that the Department promised to achieve only a 50% increase of qualifying Heads of Department (HODs) to sign performance agreements. The Government established a Performance Management and Development System (PMDS), which provides a mechanism for promoting accountability, and helps to clarify responsibilities, priorities and performance expectations of HODs. A directive was given by the Minister for Public Service and Administration (MPSA) in terms of Part III. B3 of Chapter 4 of the Public Service Regulations, 2001 and it ought to be observed in full. The Committee believes full compliance to the regulation should be the aim of the Department, not 50%.
2.1.3 Service delivery quality and access
The Department is committed to entrenching the Batho Pele principles by developing the Batho Pele impact assessment concept document in order to institutionalise the principles in the Public Service. Every year, the Department engages in Project Khaedu to afford senior management service managers (SMS) with an opportunity to work in and observe what happens in the front-end office. This grants them an opportunity to determine the extent of challenges experienced by front-office staff, with a view to finding lasting solutions to management and operational problems.
Measures are being developed to assist departments in improving waiting and turnaround times, especially at hospitals, Home Affairs offices and vehicle-licensing centres. The Department has undertaken to conduct service-user-satisfaction surveys in order to assess the level of satisfaction with government services among citizens. Budget allocation for this policy priority is the second largest after Governance and International Relations. The Governance and International Relations has the largest budget allocation.
2.1.4 Aligning resources to support the departments hands-on approach
The Department aims to automate and modernise platforms through which Government conducts business and renders services, by largely using mobile technologies. An e-government prototype platform has been developed to electronically facilitate the registration of birth and identity documents; notification of death; registration for foster-care and pension grants; and application for maintenance orders.
2.1.5 Conditions of service
By March 2013, existing policies on conditions of service would have been revised in order to create positive employment relationships. The Department developed the employee health and wellness framework in 2008. An improved housing scheme for government employees will be introduced in order to promote home ownership among public servants. The Department will continue monitoring and evaluating all departments implementation plans on employee health and wellness initiatives.
2.1.6 Citizen engagement and participation
The Department will conduct engagements with stakeholders to reflect the needs of citizens, conduct a survey to determine the awareness level of citizens regarding their rights, and will also develop norms and standards for community development workers regarding their engagement with communities.
2.1.7 Tackling corruption
The Department will improve information technology security systems in order to effectively lower the levels of corruption in the Public Service. The Department also plans to reduce transgressions related to financial systems and security risks to government systems by developing and implementing a vulnerability assessment programme. [1] The Department has already established a public sector anti-corruption unit to deal with corruption. Also, it will train anti-corruption practitioners in targeted programmes
2.2 Budget Analysis
The Department of Public Service and Administrations overall budget allocation for 2011/12 was R690.2 million, compared to R731.5 million for 2012/13, which is an increase of 5.98% in nominal terms. However, in real terms, the total budget allocation for the Department increased by 0.08% between 2011/12 and 2012/13.
The budget vote of the Department of Public Service and Administration is divided into six funded programmes that seek to achieve its mandate. The six programmes and their purposes are discussed in detail below:
Programme 1: Administration the objective of this programme is to provide policy, strategic leadership and overall management to the Department. The budget for Programme 1 increased from R165.3 million in 2011/12 to R181.1 million in 2012/13. This represents a 3.45% increase in real terms in the budget allocation between 2011/12 and 2012/13. Over the medium term, the budget allocation for Programme 1 increases to R195.0 million in 2013/14 and R205.6 million in 2014/15 as a result of a need to improve conditions of service for employees. [2] The programme takes 24.8% of the overall budget.
Programme 2: Human Resource Management and Development (HRMD) - the objective of this programme is to develop, implement and monitor human resource management policies. The Department is planning to reduce the vacancy rate from the estimated baseline of 11% [as at 31 March 2012] to 5% by March 2014.
In 2011/12 the budget allocation for Programme 2 was R34.0 million and in 2012/13 the allocation is R37.2 million . In real terms the budget allocation of Programme 2 increases by 3.32% between 2011/12 and 2012/13. Allocation to this programme takes 5.1% of the overall budget. The bulk of the Programmes budget (R10.3 million) is allocated to the Human Resource Planning, Performance and Practice sub-programme, which is responsible for providing advice and implementation support to improve HR planning, employment practices and employee performance management.
The budget allocation for the Employee Health and Wellness sub-programme has increased from R5.5 million in 2011/12 to R5.7 million in 2012/13. This is the second largest allocation to a sub-programme of HRMD. Spending in this programme is expected to increase over the medium term to R6.4 million [3] due to the emphasis placed on health and wellness issues in the workplace.
Programme 3: Labour Relations and Remuneration Management - the objective of this programme is to develop, implement and maintain labour relations and compensation policies, as well as, ensure a co-ordinated engagement with organised labour. Programme 3 accounts for a 3.1% share of the total budget vote in 2012/13. Between 2011/12 and 2012/13, the budget allocation for Programme 3 decreased by 8.81% in real terms. The decrease is as a result of the decentralisation of policy on incapacity leave and ill-health retirement (PILIR) to departments and provinces by the end of 2009/10. [4] As a result, PILIR has been phased out of the programme
Programme 4: Public Sector Information and Community Technology This programme aims to develop, implement and monitor information communication technology (ICT) policies and norms and standards that enable citizen-centred services. The budget allocation of Programme 4 accounts for a 6% share or R43.9 million of the total budget vote in 2012/13. In 2012/13, the allocation for Programme 4 increased by 7.33% in nominal terms, but, in real terms, it increased by 1.36% between 2011/12 and 2012/13. The increase is primarily attributed to additional funding for improved conditions of service and continued connectivity of the Thusong Service Centres. The Department has undertaken to establish 10 new centres per year over the medium term.
Programme 5: Service Delivery and Organisational Transformation aims to enable the Department to promote a service-delivery and organisational transformation framework. Programme 5 also enables the Department to engage in interventions and partnerships to promote efficient and effective service delivery. As indicated in Table 1, the budget allocation for Programme 5 increased from R204.8 million in 2011/12 to R214.4 million in 2012/13, representing a nominal increase of R9.6 million or 4.69%. The budget allocation for Programme 5 has declined by 1.14% between 2011/12 and 2012/13. Programme 5 at 29.3% share, represents the second largest share allocation of the total budget vote in 2012/13.
The increasing budget allocation of Programme 5 can be attributed to the need to improve conditions of service. The number of national and provincial departments that will be supported with the development of service delivery improvement plans (SDIPs) is expected to increase, hence a bigger allocation. The number of national and provincial departments in which Batho Pele training will be conducted has increased as well.
Programme 6: Governance and International Relations - seeks to improve participatory governance, strengthen the fight against corruption and engage with international partners in the field of public administration. The budget allocation for Programme 6 increased from R222 million in 2011/12 to R232.4 million in 2012/13. In real terms, the budget allocation increased by 6.3% between 2010/11 and 2011/12, an increase of approximately R10.4 million.
This is estimated at -1.10% real change. Programme 6 accounts for the largest allocation share, which is 31.8% of the total budget vote in 2012/13.
The declining budget allocations to some sub-programmes between 2011/12 and 2012/13, is due to a number of reasons. For instance, the Integrity and Ethics Management budget was lower than anticipated, due to capacity constraints and delays in finalising the organisational form for the Public Sector Anti-Corruption Unit.
Table 1 (below) highlights the break down of the allocated funds per programme over the Medium term Expenditure Framework (MTEF)
|
Programme |
Budget |
Nominal Rand change |
Real Rand change |
Nominal % change |
Real % change |
|||
|
R million |
2011/12 |
2012/13 |
2013/14 |
2014/15 |
2011/12-2012/13 |
2011/12-2012/13 |
||
|
Administration |
165.3
|
181.1 |
195.0 |
205.6 |
15.8 |
5.7 |
9.56 |
3.45 |
|
Human Resource Management and Development |
34.0 |
37.2 |
40.3 |
42.5 |
3.2 |
1.1 |
9.41 |
3.32 |
|
Labour Relations and Remuneration Management |
23.3 |
22.5 |
25.8 |
27.1 |
- 0.8 |
- 2.1 |
-3.43 |
-8.81 |
|
Public Sector Information and Communication Technology Management |
40.9 |
43.9 |
46.5 |
50.5 |
3.0 |
0.6 |
7.33 |
1.36 |
|
Service Delivery and Organisational Transformation |
204.8 |
214.4 |
227.7 |
241.9 |
9.6 |
- 2.3 |
4.69 |
-1.14 |
|
Governance and International Relations |
221.9 |
232.4 |
245.5 |
260.4 |
10.5 |
- 2.4 |
4.73. |
-1.10 |
|
TOTAL |
690.2 |
731.5 |
780.8 |
828.0 |
41.3 |
0.5 |
5.98 |
0.08 |
Transfers from Budget Vote 12 are made to the following entities:
- Public Administration Leadership and Management Academy (PALAMA)
PALAMA is a legislated training institution, mandated to provide or facilitate the provision of training to public servants. The training trading account is a mechanism within the academy for the partial recovery of the costs of training programmes. The academy seeks to address the uncoordinated manner in which public sector training continues to be provided. PALAMA will receive a transfer from Budget Vote 12 of R123. 5 million for 2012/13 financial year.
- Public Service Commission (PSC)
The Public Service Commission derives its mandate from sections 195 and 196 of the Constitution, which sets its powers and functions. The commission plays a significant role in dispute resolution and promoting sound labour relations and labour peace in the Public Service. These include, amongst others, considering grievances lodged by employees and heads of department. The Committee noted that the institutional independence and budget allocation of the PSC remained under the DPSA. The PSC will receive a transfer from Budget Vote 12 of R158. 051 million for 2012/13 financial year.
Auspices
- State Information Technology Agency (SITA)
The State Information Technology Agency (Pty) Ltd was established through SITA Act (Act 88 of 1998 as amended by Act 38 of 2002) and classified as schedule 3A Public Entity according to the Public Finance Management Act. The Government is a sole shareholder of SITA, and the Minister of the Public Service and Administration exercises the custodian rights attached to the share on behalf of the State.
SITA was established to consolidate and co-ordinate the states IT resources, save costs through economies of scale, increase delivery capabilities and improve interoperability. The agency is funded on a cost recovery basis through its provision of services such as infrastructure, hosting, data centres and procurement. The Committee was informed that there were still cases of corruption awaiting the decision of the board in terms of what should be done going forward. The process was due to be completed in due course. The entity generates revenue by charging departments and other government institutions a fee for services rendered and does not receive any appropriated funding.
3. Findings and Recommendations
Having considered the strategic plan and Budget Vote for the Department, the Portfolio Committee on Public Service and Administration made the following findings and consequent recommendations:
3.1 The slow pace in implementing the Integrated Financial Management Systems (IFMS) remains a concern to the Committee. There is a need to hasten the transfer of information from the PERSAL into the IFMS so as to ensure proper and accurate information for all employees in the Public Service.
3.2 The employment of people with disabilities and the reaching of the 2% target concerns the committee. Proper measures ought to be put in place to reach the target.
3.3 The independence of PSC remains a concern to the Committee; the mandate of the PSC requires the institution to be credible across a political and societal spectrum. The PSCs budget continues to be allocated to and accounted for by the Minister of Public Service and Administration, which compromises its independence.
3.4 The limited budget of the PSC over the past financial years impacted negatively on the PSCs ability to discharge its function effectively. The transfer of R151, 051 million from 2011/12 budget vote 12, to R158.5 for 2012/13 attests to this fact.
3.5 Connectivity at Thusong Service Centres needs to be improved and given urgent attention to allow requisite access to services for local communities.
3.6 Skills planning should be an on-going process in the Public Service so that outsourcing of services could be minimized. PALAMA, the PSETA, Further Education and Training (FET) Colleges and the Department of Higher Education should work collaboratively to address this situation.
3.7 The Committee will monitor closely the 32 cases of corruption that are awaiting the decision of the Board of SITA on whether or not to charge the perpetrators.
The Minister is called upon to ensure the implementation of all the above recommendations.
4. Conclusion:
Having considered the Strategic Plan of the Department of Public Service and Administration for the 2012 - 2014 period, and Budget Vote 6 for the 2011/12 financial year, the Portfolio Committee on Public Service and Administration recommends as follows:
4.1 That the National Assembly approve Budget Vote 12: Public Service and Administration.
Report to be considered.
Documents
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