Presentation to the Portfolio Committee on Public Service and Administration on IFMS and the PERSAL clean-up project

8 February 2012

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Contents

• Aim and Objectives of IFMS• Why IFMS?• Cabinet Memo 16 of 2005 and 22 of 2007• IFMS Governance Structure• Roles and Responsibilities of DPSA, NT and SITA• Product Scope• Progress To-Date

– Phase II Non Product Deliverables– Product Development– Product Implementation

• Industry Involvement with SITA• Estimated Cost to IFMS• Reasons for Slippages• Strategy to Remedy Situation• IFMS: Next steps• Relationship between PERSAL Clean-up and IFMS• PERSAL clean-up

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Aim and objectives of the IFMS

Aim

– To provide an Integrated Financial Management System (IFMS) to National and Provincial Government that integrates human resource, payroll, financial and supply chain management and business intelligence

Objectives

– Replace aging technologies

– Enable implementation of Public Finance Management Act and Public Service Act

– Re-focus SITA towards its core mandate

– Develop Information and Communication Technology (ICT) skills within the country

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Why IFMS?

• Need to replace legacy systems

– Lack of inherent interoperability and business intelligence services

– Increasing difficult to maintain and upgrade

– Challenges to support changing policy environment

• Need to provide centralized solutions to standardize on technology and leverage on economies of scale

• Automation of business processes to ensure greater efficiency

• Improve quality of data

– Improved access to data

– Elimination of manual data capturing processes

• Potential cost savings – for example through elimination of manual leave capturing

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Cabinet Memo: 16 of 2005 & 22 of 2007 Background

– 2005: Integration and renewal of all financial, supply and human resource management information technology systems that are in use in national and provincial departments

– 2007: Fast-track the development of Human Resource Management, Procurement Management and Asset Management (AM) modules

Phase I– Was approved by the Budget Council in October 2002 and was completed end February 2004. Phase I

deliverables were: Master Systems Plan, User Requirements Statements and Prospectus

• Phase II – planned to take approximately 24 months

• Establishing a prime systems integrator (PSI) capability within SITA

• Acquiring the infrastructure to support the lead applications

• The procurement of commercial-off-the-shelf (COTS) software for the Human Resource Management (HRM) and Procurement Management (PMM) modules

• Establishing support infrastructure and testing facilities

• Partner with Industry

• Phase III – planned to take approximately 60 months

• Develop a new core Supply Chain Management (SCM) module.

• Develop a new core Finance module.

• Procurement of Catalogue Management module.

• Develop a new Business Intelligence (BI) module .

• Develop a new Payroll module.

• Integrate all modules (HRM, SCM, FIN, Payroll and BI)

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IFMS Governance Structure as approved by Cabinet in 2005

SITA EstablishedIFMS PSI

FIN HR SCM GITOC

STATUTORY BODIES & CONSOLIDATED USER REPRESENTATION

MINISTERIAL OVERSIGHT

NT SITA DPSA

INDUSTRY/SITA

INTEGRATEDSOLUTION USER NEEDS

CONSOLIDATED URS

IT PRODUCTS&SERVICES

IMPLEMENTATIONSUPPORTSERVICES

PHASE 2ADVISORY

PANELAd-hoc representatives from the DOD and SAPS to address specific matters

Transverse SystemsRegulator:- Service Levels- Rates- Benchmarking- Disputes

SECURITYCLUSTER

PROVINCIALCLUSTER

IFMS STEERCOM

IFMS STRATEGIC COORDINATION

IFMS PHASE II SLA MANAGEMENT

NAT. DEPT.

NAT. DEPT.

PROVINCE

PROVINCE

USER ORGANISATIONS

User Requirement Statement (URS) Teams

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Roles and Responsibilities of DPSA, NT and SITA

• DPSA– Determine HR policies, processes and systems for the Public Service and ensure that IFMS supports

these.– Manage and maintain HR corporate reference data such as qualification and competency catalogues.– Oversee the roll-out of the IFMS HR module to the Public Service and provide support to departments

during IFMS HR implementations.

• National Treasury– Financial sponsor– Determine financial and supply chain management policies, processes and systems for the Public

Service and ensure that IFMS supports these.– Manage and maintain financial and supply chain management corporate reference data such as the

standard chart of accounts.– Oversee the roll-out of the IFMS financial, payroll and SCM modules to the Public Service and provide

support to departments during the implementation of these modules.

SITA– Develop an appropriate overall integrated solution architecture and systems specification.– Develop or acquire and integrate the components and services into an overall solution.– Provide technical support over the solution lifecycle.

• Collective responsibility– Future oversight over the IFMS programme in respect of pricing policies, levels and quality of services

rendered to government clients, etc– Overall management of the various modules to ensure integrity of IFMS

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Product Scope

• Health and Safety Management

• Education Training Development

• Labour Relations

• HR Planning

• Organizational Management

• Recruitment Management

• Employee Movement

• Performance Management

• HR Reporting

• Career Management

• Remuneration Management

• Termination of Service

• HR Administration

• Catalogue Management

• Procurement Management

• Inventory Management

• Asset Management

• MTEF Budget Preparation

• Departmental Financial Management

• Treasury Financial Management

• Payroll

• Reporting

• Analysis

• Dashboards

• Data Mining

Supply Chain

Management

Human Resource

Management

Financial

Management and Payroll

Business

Intelligence

The IFMS solution will provide functionality to National and Provincial Departments

Integrated

Master Data Management

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Progress to-date: Phase II Non Product Deliverables

PSI Capacitating

SITA underwent internal self assessments, which was supplemented by an assessment that was led by the Johannesburg Centre of Software Engineering

Assessment of SITA by an independent panel of experts is scheduled for 2012

Cost Recovery and Pricing Model

A high level cost and pricing model has been completed. More detailed work is in progress

Skills Development and Change Management

IFMS Training Framework for users has been completed IFMS Change Management Strategy Framework has been completed

Implementation Capability

Implementation methodology toolkit completed Partner database established containing 155 partners

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Progress to date: Product Development

Domain Status Date Completed

EnvisagedDelivery

Dates

Supply Chain Management Core

Asset Management Completed 2010

Procurement Management Completed 2011

Catalogue Management Completed 2011

Supply Chain Management (Extended) - Inventory

In progress 2012

Human Resource Management Completed 2010

Payroll In progress Tender under adjudication

2013

Financial Management (Core) In progressTender under adjudication

2013

Business Intelligence In progress 2012

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Progress to date: Product Lead Site Implementations

The following lead site implementations have been completed:

National Treasury (AM/PMM) Limpopo: Treasury, Roads and Transport, Local Government and

Housing and Agriculture (AM) Public Service and Administration (HRM)

The following lead site implementations are underway: Limpopo Department of Health (AM) Free State Department of Education (HRM) Department of Defense (AM/PMM)

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Industry Involvement with SITA

Vendors: Human Resource Management: Simunye Consortium Integrated Development Environment: IBM Technical Support Services: Bytes Procurement Management: ICT Works Consortium Catalogue Management : Pilog Business Intelligence: Praxis

Implementation Partners (155 in total): Partners per province – note that partners can be in more than one

province: Gauteng (101), North West (32), Free State (32), Mpumalanga (37), Limpopo (55), Kwa-Zulu Natal (64), Western Cape (56), Eastern Cape (47), and Northern Cape (31)

To date, 44 implementation partners have been accredited Partners will support national roll-out of IFMS 12

Estimated Cost of IFMS

Expenditure to date:

R 559million

Funding for outstanding product development, hosting infrastructure and implementation cost will be dealt with through the MTEF processes

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Reasons for Slippages

IFMS was not fully implemented and rolled out to government as envisaged, primarily due to:

Complexity of the IFMS programme

Longer than planned procurement and contract negotiation processes

The lack of full capacity in SITA IFMS team

The additional responsibility of moving Phase III deliverables (acquisition and implementation of COTS products) to Phase II placed an additional burden on the IFMS project

Readiness and change management issues of lead sites

Misalignment of product procurement and product development

Lack of functional skills in some departments

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Strategy to remedy the situation

The IFMS project team was too optimistic about the timelines and have learnt through experience:

A revised memorandum will be submitted to Cabinet that includes more realistic timelines

SITA’s capacity problems have been addressed with the SITA turnaround and the capability will be augmented with industry partners upon conclusion of contracts

Contract negotiations will be comprehensive and streamlined

The IFMS architecture is being institutionalised, which will result in less complexities being experienced in developing the outstanding modules

Governance and oversight arrangements to be improved

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IFMS: Next steps

Finalise development of outstanding modules including adjudication and contracting

SITA, together with DPSA and NT, will compile a strategy for the rollout of IFMS, which will be consulted with relevant stakeholders in 2012/13

National roll-out of selected modules to commence in 2012/13

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Relationship between PERSAL clean-up and IFMS

• Important to ensure that accurate and “clean” data is migrated from PERSAL to IFMS HR and Payroll systems at implementation

• PERSAL will still be utilized as a payroll system and as a source of reporting on HR in the Public Service for a number of years until IFMS is fully implemented

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PERSAL Clean-up

• The DSPA conducted PERSAL clean-up workshops in a number of national departments and provincial administrations that are responsible for the implementation on the Public Service Act/Regulations:

– 8 Provincial Administrations (Gauteng outstanding)

– 10 National Departments

• The workshops were aimed at raising awareness amongst managers and officials about the value of improvement of PERSAL information and utilization of HR management information for planning and decision making. The PERSAL clean-up methodology was also explained to the participants.

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o The DPSA utilised the Offices of the Premiers as points of entry in provinces for the PERSAL clean-up workshops. The Offices of the Premiers then facilitated the organization of workshops with all departments in their respective provinces

o On the first day in all provinces, briefing sessions were conducted with the management representatives from all departments including the Office of the Premiers except in Limpopo and North West

o In other provinces such as KZN, a presentation on the quality of data for the province was also presented to the HoD Forum

o HR Forums in other provinces such as Limpopo were also utilized for presentations on the quality of data

o In summary, there was overall commitment on the part of senior management and staff to support and implement the project

PERSAL Clean-upPERSAL Clean-up

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Example: Improvement on Citizenship Information between 30 Example: Improvement on Citizenship Information between 30 September to 31 December 2011September to 31 December 2011

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PERSAL Clean-upPERSAL Clean-up

1.The DPSA will continue enforcing compliance through: 1.The DPSA will continue enforcing compliance through:   

• Implementation support interventions

• Continuous monitoring of implementation of recommendations based quarterly reports submitted to departments

• Continuous monitoring based on Project Plans submitted with timelines

• Notification of non-compliance to Executive Authority

2. Strengthening accountability2. Strengthening accountability

• Reporting of data quality analysis on regular basis• Continue with data quality assessment and will use August 2011 data

as baseline to assess the level of improvement in the quality of data

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Questions?

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Abbreviations

AM Asset Management

BI Business Intelligence

COTS Commercial-off-the-shelf

DPSA Department of Public Service and Administration

FIN Financial Management

HoD Head of Department

HRM Human Resource Management

GITOC Government Information Technology Officer’s Council

IFMS Integrated Financial Management System

ICT Information and Communication Technology

NT National Treasury

PMM Procurement Management

PSI Prime Systems Integrator

SCM Supply Chain Management

SITA State Information Technology Agency

SLA Service Level Agreement

URS User Requirements Statement

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