10/29/10

PRESENTATION TO THE PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION

27 October 2010

2 10/29/10

The Public Service Commission (PSC) has been requested to brief the Committee on the implementation of section 195 of the Constitution, 1996, by the other entities reporting to it

These entities include the Department of Public Service and Administration (DPSA), Public Administration Leadership and Management Academy (PALAMA) and the State Information Technology Agency (SITA)

In order to assess the implementation of section 195 of the Constitution, the PSC normally applies its Transversal M&E System to a department, a process which usually takes a few months

The PSC applied its Transversal M&E System, that evaluates departments against a specific set of indicators and standards that assess the performance of departments against the nine values in section 195 of the Constitution, in the DPSA in the 2007/08 research cycle

The system has not been applied in PALAMA SITA is established by the SITA Act, 1998 and is governed and controlled

by a Board of Directors, appointed by the MPSA after consultation with Cabinet. As it is a public entity, the PSC has not applied its M&E System to SITA

2

INTRODUCTION

3 10/29/10

For each of the entities, the following indicators were used in respect of the 2007/08, 2008/09 and 2009/10 financial years: Financial Management (Based on previous annual reports, plus interim

expenditure reports from National Treasury) Service Delivery Outputs (Based on Annual Reports) Human Resource Management and Labour Relations (based on Annual

Reports and PSC records) Ethics and Anti-Corruption (Based on PSC Records)

The National Treasury format for annual reports does not apply to the SITA, and some information normally available in Public Service reports was therefore not readily available, e.g. HR oversight report

approach

4 10/29/10

DPSA

5 10/29/10

DPSA: application OF THE m&e sYSTEM

PRINCIPLE SCORE COMMENTProfessional Ethics 3,50 Disciplinary cases takes on average 53

days (2.75 months) to finalise

Training was conducted on conflict management as a pro-active step to reduce disputes

Efficiency, Economy and Effectiveness

5,00 The prescribed transversal national data management systems, namely BAS, PERSAL and LOGIS was used to generate information to monitor and evaluate the performance of its operations and projects

The DPSA was advised to provide the reasons for non-achievement of outputs. This was addressed in the 2006/07 Annual Report

The DPSA’s performance and compliance with the nine Constitutional values and principles for the 2007/08 evaluation cycle was 82%, which is excellent performance against several of the standards

6 10/29/10

PRINCIPLE SCORE COMMENT

Development-Oriented Public Administration

5,00 Although the Research, Learning and Knowledge Management Component reports on and shares lessons learned, a specific system should be put in place to consciously identify lessons learned and how to apply these to future poverty reduction projects

Impartiality and Fairness 4,00 A checklist and manual were in place to ensure that decisions are taken in compliance with the principles of administrative justice

Public Participation and Policy-making

5,00 Did not have a policy/ guideline on public/ stakeholder participation in policy-making

Accountability 4,50 Unqualified audit57% of the strategies in the Fraud Prevention Plan had been adopted

DPSA: application OF THE m&e sYSTEM (cont)

7 10/29/10

PRINCIPLE SCORE COMMENT

Transparency 5,00 Annual report was clearly presented in narrative and pictorial form

Following a recommendation that the Department should include a column that indicates the actual performance, this was subsequently included in the 2007/08 Annual Report

Good HRM and Career Development

3,00 The average time taken to fill a vacant post was 259 days (9 months)

This was improved to between 4 and 5 months (82 days)

Representivity 2,00 Women at SMS level: 44.5% Blacks: Only 63.9% instead of 75%People with disabilities: 0,67% instead of 2%

DPSA: application OF THE m&e sYSTEM (cont)

8 10/29/10

APPROPRIATION STATEMENT

2007/08R’000

2008/09R’000

2009/10R’000

2010/112R’000

Final appropriation R 384 063 R420 208 R429 833 R651 484Actual expenditure R370 325 R411 589 R417 880 R307 127Variance R13 738 R8 619 R11 953Expenditure as % of final appropriation 96.4%1 97.9%1 97.2%1 47.1%3

Notes:• Outside the margin of 2%• As at 31 August 2010 for Vote 11• Above the benchmark of 41.67% at end of August 2010 In the 2007/08, 2008/09 and 2009/10 financial years the DPSA obtained

unqualified audit opinions. No recurring issues emanating from the audits were identified In the 2009/10 financial year the DPSA incurred irregular expenditure to the

amount of R4 464 000 The AG noted that in 2009/10, the Accounting Officer did not provide Parliament

with the strategic plan at least 10 days prior to the discussion and the strategic plan does not include indicators for the department’s programmes

DPSA: FINANCIAL MANAGEMENT

9 10/29/10

The AG indicated that– the DPSA has not reported on all the predetermined objectives the planned and reported performance targets were not specific,

measurable and time bound Changes to the objectives from the approved strategic plan for the year

under review were not disclosed and explained Some of the planned and reported indicators were not verifiable, as it was

not possible to adequately validate the processes and systems that produce the indicator

The PSC’s assessment of the performance information found that - there is a confusion between the output, indicator and target columns in

the sense that all three columns give additional descriptions of the output

DPSA: PERFORMANCE INFORMATION (2009/10)

Outputs Performance Measure Target

Development of a Workplace Breast feeding and Childcare Facility Policy (Changed to Development of Guidelines for Childcare Facilities)

Consultation with stakeholders Draft guidelines (not policy)

Consultation with stakeholders on Draft guidelines

Development of an IFMS HR Module on organisational management (IFMS Blueprint)

SAP Human Capital Management module

HR Module on organisational management developed

10 10/29/10

the actual performance column in some instances describes completed activities that will lead to the production of the output, and it is not possible to determine whether the output had been achieved, e.g.

DPSA: PERFORMANCE INFORMATION (2009/10)

Outputs Performance Measure

Target Actual

Implementation of EH&W Policies (HIV & AIDS & TB; HPM; Wellness: SHERQ)

Proportion of Departments supported to implement policies EHW Indaba IX

Departments supported to implement policies EHW Indaba IX

MOU between DPSA and Jhapiego signed by DG. The implementation was discussed in the March IDC meeting. Provincial workshops will start between May and September 2010. The workshops will coincide with the HIV Counselling and Testing (HCT) Campaign, therefore during these policy communication workshops VCT will occur in support of the mass HCT campaign coordinated by SANAC.

11 10/29/10

it is in some instances not possible to establish whether the output has been achieved

the reasons for non-achievement were not reflected

DPSA: PERFORMANCE INFORMATION (2009/10)

Outputs Performance Measure Target Actual

PILIR specific Health Education and promotion programmes

Conducted a survey and lifestyle audit within the Public Service.Guidelines on having a Health Education and promotion programme

Survey and lifestyle audit within the Public Service conducted

Draft report completed on Public Service Guidelines for Smoking Cessation.

Outputs Performance Measure Target Actual

IFMS HR Module

Completed HRD module in the IFMS

Develop the IFMS Module

The development of the HRD module has gone off well. The outstanding work will be finalised during the next quarter.

12 10/29/10

VACANCY RATE AS AT 31 March 2008 31 March 2009 31 March 2010

No of posts 254 492 529

No of posts filled 199 385 435

Vacancy rate 21.7% 21.7% 17.8%1

1. Vacancy rate the highest at SMS level (23.6% or 29 posts), and the majority of these posts were in the information technology related field

DPSA: HUMAN RESOURCES MANAGEMENT

EMPLOYMENT EQUITY 31 March 2008 31 March 2009 31 March 2010

Black people (Target: 90%) 84.8% 86.5% 89%

Women at SMS level (Target: 50%) 44.9% 39.2% 40.4%

People With Disabilities (Target: 2%) 1.3% 1.6% Not indicated

Ideal vacancy rate in the Public Service

is at between 7 – 10%

13 10/29/10

FINANCIAL YEAR

DG’s PA SUBMITTED EVALUATION REMARKS

2007/08 Yes22 Feb 08 No

Evaluation documents for DPSA were submitted to the PSC but the evaluation meeting could not be held.

2008/09 Yes 03 July 08 No

Evaluation documents were never submitted to the PSC. The DG had since moved to another department.

2009/10 Yes2 Sept 09

Still to be conducted

DPSA: HUMAN RESOURCES MANAGEMENT (cont)

• In the 2006/07 financial year, the AG noted that the DPSA had not updated its Human Resource (HR) Plan for the year ended 31 March 2009. The HR Plan was subsequently revised and approved on 30 March 2010

14 10/29/10

DISCIPLINE 2007/08 2008/09 2009/10

No of disciplinary hearings 11 1 3

No of people suspended 3 1 1

Average number of days suspended 90 112 120

Cost (R’000) of suspensions R46 996 R 0 R37 744

GRIEVANCES 2007/08 2008/09 2009/10

No of grievances lodged 5 14 12

No of grievances referred to the PSC 2 0 4

Nature of grievances Unfair treatment• Salary problems• Unfair treatment

• Salary problems• Filling of posts• Performance

assessments

DPSA: LABOUR RELATIONS

Must hold a hearing within a month or 60 days

15 10/29/10

NATIONAL ANTI-CORRUPTION HOTLINE CASESFinancial Year 2007/08 2008/09 2009/10 2010/11No of cases referred  0 2 1 0Feedback received  0 0 1 0Cases closed  0 0 1 0Procurement irregularities and maladministration

FINANCIAL DISCLOSURE FORMS AS AT 30 APRIL 2007/08 2008/09 2009/10

No of SMS members 84 80 98

No of FDF received 84 80 89

Compliance rate 100% 100% 91%

FINANCIAL MISCONDUCT CASES REPORTED TO THE PSC 2007/08 2008/09 2009/10

No of finalised cases 3 5 0

Cost of financial misconduct R 337 052 R 5 000 0

Nature of misconduct Financial mismanagement

Capture and autho-rise unapproved salary advice

DPSA: ETHICS AND ANTI-CORRUPTION

16 10/29/10

PALAMA

17 10/29/10

APPROPRIATION STATEMENT

2007/08R’000

2008/09R’000

2009/10R’000

2010/112R’000

Final appropriation R131 126 R105 527 R121 115 R651 484Actual expenditure R131 113 R105 365 R121 113 R307 127

Variance R13 R162 R2Expenditure as % of final appropriation 100%1 99.8%1 100%1 47.1%3

Notes:• Within the margin of 2%• As at 31 August 2010 for Vote 11• Above the benchmark of 41.67% at end of August 2010

In the 2007/08, 2008/09 and 2009/10 financial years PALAMA obtained unqualified audit opinions

No recurring issues emanating from the audits were identified In the 2009/10 financial year, the AG found that the strategic plan of PALAMA

did not include measurable objectives, expected outcomes, programme outputs, indicators (measures) for all the objectives

PALAMA: FINANCIAL MANAGEMENT

18 10/29/10

In the 2007/08, 2008/09 and 2009/10 financial years PALAMA Trading account obtained unqualified audit opinions

No recurring issues emanating from the audits were identified

TRADING ACCOUNT 2007/08R’000

2008/09R’000

2009/10R’000

Revenue R115 711 R124 860 R158 030

Expenditure R85 502 R137 126 R168 605

Variance +R30 209 -R12 2661 -R10 5751

Notes:• Deficit from operations

PALAMA: FINANCIAL MANAGEMENT (CONT)

19 10/29/10

The AG indicated that for the selected objectives 31% of the planned and reported targets were not: specific in clearly identifying the nature and the required level of

performance measurable in identifying the required performance

In addition, the AG reported that the internal policies and procedures of PALAMA do not adequately address the process pertaining to the planning and monitoring of predetermined objectives at the overall performance level 29 of the 57 outputs were fully achieved, which constitutes 51%

achievement of service delivery outputs. A further 25 (44%) outputs were partially achieved

Reasons for non-achievement include- Service providers could not confirm their availability for the dates set Lack of participation by key external stakeholders Delay in donor funding Financial constraints

PALAMA: PERFORMANCE INFORMATION (2009/10)

20 10/29/10

VACANCY RATE 31 March 2008 31 March 2009 31 March 2010

No of posts 168 237 242

No of posts filled 131 130 172

Vacancy rate 29.6% 45.1%1 29%1

• In the 2008/09 and 2009/10 financial years the vacancy rate was the highest at salary levels 6-8 (61.8% and 39%, respectively)

PALAMA: HUMAN RESOURCE MANAGEMENT

EMPLOYMENT EQUITY 31 March 2008 31 March 2009 31 March 2010

Black people (Target: 90%) 77.1% 76.9% 79.7%Women at SMS level (Target: 50%) 36.3% 40.5% 46.5%

People With Disabilities (Target: 2%) 1.5% 1.5% 1.7%

Ideal vacancy rate in the Public Service

is at between 7 – 10%

21 10/29/10

FINANCIAL YEAR

DG’s PA SUBMITTED EVALUATION REMARKS

2007/08 Yes18 Oct 08 No

Evaluation documents were received incomplete, without a valid verification statement

2008/09 Yes15 Oct 08 No

Evaluation documents were never submitted to the PSC

The DG has since left the Public Service

2009/10 No Still to be conducted Acting DG

PALAMA: HUMAN RESOURCE MANAGEMENT

22 10/29/10

DISCIPLINE 2007/08 2008/09 2009/10

No of disciplinary hearings 3 0 Not indicated

No of people suspended 1 0 Not indicated

Average number of days suspended Not indicated

Cost (R’000) of suspensions Not indicated

GRIEVANCES 2007/08 2008/09 2009/10

No of grievances lodged 0 1 12

No of grievances referred to the PSC 1 1 0

The majority of grievances relate to performance assessment and salary problems

PALAMA: LABOUR RELATIONS

23 10/29/10

NATIONAL ANTI-CORRUPTION HOTLINE CASES

Financial Year 2007/08 2008/09 2009/10 2010/11

No of cases referred 1 0 0 0

Feedback received 1 0 0 0

Cases closed 1 0 0 0

Appointment irregularities & fraud = unfounded

FINANCIAL DISCLOSURE FORMS AS AT 30 APRIL 2007/08 2008/09 2009/10

No of SMS members 18 43 47

No of FDF received 18 41 35

Compliance rate 100% 95% 74%

No finalised financial misconduct cases were reported to the PSC during the 2007/08, 2008/09 and 2009/10 financial years

PALAMA: ETHICS AND ANTI-CORRUPTION

24 10/29/10

SITA

25 10/29/10

FINANCIAL PERFORMANCE 2007/08R’000

2008/09R’000

2009/10R’000

Revenue 3 607 613 3 933 570 3 941 772 Gross surplus 917 323 710 151 681 491Surplus for the year before tax 427 974 156 028 49 562Total assets 2 560 566 2 611 985 2 669 100

Net assets 1 365 962 1 476 469 1 510 209

Cash generated from operations 271 171 87 125 191 675 In the 2007/08, 2008/09 and 2009/10 financial years SITA obtained

unqualified audit opinions In all three financial years, the AG noted that a contract management system

that facilitates a fair, equitable, transparent, competitive and cost-effective procurement and provisioning system was not in place

In the 2009/10 financial year, irregular expenditure to the amount of R214 million was incurred as a proper procurement and provisioning process was not followed

The Strategic Plan and budget for the 2010/11 financial year had not been approved by the EA of SITA within the prescribed periods

SITA: FINANCIAL MANAGEMENT

26 10/29/10

In regard to non-adherence to legislation, the AG found that in some instances- service level agreements were not signed or concluded the invitation to tender occurred without an approved business case the business cases did not include a budget for the required goods and

services a procurement schedule for the execution of a request for a bid was not

submitted for approval to the designated official at the government department

bid responses received after the approved bid closing date were evaluated

the declaration of interest form was not completed and signed at meetings

the information used in the evaluation reports did not agree to bid responses submitted by the bidder

quotations were requested from suppliers who were not on the list of preferred suppliers

SITA: FINANCIAL MANAGEMENT (CONT)

27 10/29/10

The AG indicated that for the selected objectives – 44% of the planned and reported measures were not clear, with an

unambiguous definition to allow for data to be collected consistently 22% of the planned and reported targets were not specific in nature and

measurable in identifying the required performance 13 of the 22 outputs were fully achieved, which constitutes 59%

achievement of service delivery outputs Reasons for non-achievement include- Decrease in spending by customers and SITA tariffs were not increased Challenges with regard to debt collection from clients High leadership turnover and the impact thereof on staff morale

SITA: PERFORMANCE INFORMATION (2009/10)

28 10/29/10

SITA: HUMAN RESOURCE MANAGEMENT

EMPLOYMENT EQUITY 31 March 2008 31 March 2009 31 March 2010

Black people (Target: 62%) 59.8% 62.8% 64.9%

Women (Target: 46%) 45% 45.9% 46.1%

People With Disabilities (Target: 1%) Not indicated 1.3% 1.5%

Note: The targets mentioned above are obtained from the Annual Reports and are not similar to those in the Public Service

The turnover on critical skills and best performers was 1.78%, as compared to the target of 7%

22% of the training budget was spent on leadership development

29 10/29/10

The AG noted the following in respect of the 2009/10 financial year: The Special Investigation Unit is investigating four cases relating to

procurement irregularities As at 31 March 2010, internal audit had completed 15 investigations.

These investigations related to- Irregularities within the procurement process (12) Human Resources matters and contract and invoicing disputes (3)

In addition, one case was handed to the Commercial Crime Unit of the SAPS

As at 31 March 2010, there were 20 cases under investigation by internal audit. These investigations related to procurement irregularities, conflicts of interest and irregularities in the human resource and payroll departments

SITA: ETHICS AND ANTI-CORRUPTION

NATIONAL ANTI-CORRUPTION HOTLINE CASESFinancial Year 2007/08 2008/09 2009/10 2010/11No of cases referred  1 4 0 0Feedback received  0 0 0 0Cases closed  0 0 0 0Procurement irregularities, nepotism and fruitless expenditure

30 10/29/10

This presentation has highlighted areas that impact on the performance of the DPSA, PALAMA and SITA in respect of key issues over a period of three financial years

The PSC trusts that the information highlighted in this presentation addresses the Portfolio Committee’s request to be briefed on the implementation of section 195 of the Constitution, 1996, by the other entities reporting to it

CONCLUSION

10/29/10

THANK YOU