Presentation to Portfolio Committee FEBRUARY 2017 CENTRE FOR PUBLIC SERVICE INNOVATION 2nd and 3rd QUARTER PERFORMANCE REPORT (JULY – DECEMBER 2016)

OVERVIEW Executive Summary Purpose and scope of the report Progress on 2nd Quarter targets not achieved by end September 2016 3rd Quarter Highlights 3rd Quarter targets not achieved Expenditure performance

Executive Summary This is the report on the organisation’s progress with regards to the achievement of the 2nd and 3rd Quarter Targets on the organisation’s 2016/2017 Annual Performance Plan (APP) as at the end of December 2016. The report has been compiled by the Executive members of the CPSI based on the analysis of the progress from the work streams. The reported progress has been verified by the Internal Audit and Risk Management Unit. The 2nd Quarter was endorsed by the CPSI’s Audit and Risk Committee, the 3rd Quarter’s report will be presented during February 2017.

Purpose and scope of the report The monitoring and reporting of the organisation's performance against its Annual Performance Plan (APP) is a requirement as per; Section 40(d) of the Public Finance Management Act, 1999 (Act No 1 of 1999), and National Treasury's Framework for Strategic and Annual Performance Plans (August 2010).  Accordingly the report has been submitted to: The Minister and Deputy Minister; The Director General of the DPSA for noting; The National Treasury; and The Department of Monitoring and Evaluation. This 3rd Quarter Report highlights the overall performance of the organisation.

Progress on 2nd Quarter targets not achieved by end September 2016 During the 2nd Quarter period the organisation had 21 Targets. As at the end of September, 19 (90%) targets were achieved and 2 (10%) targets were not achieved. The progress on those targets is as follows: Responsible unit Target for 2016/17 as per Annual Performance Plan (APP) 2nd Quarter Target Actual Achievement on 30 September Progress during 3rd Quarter Performance Rating R&D At least three service delivery challenges investigated and possible solutions identified One service delivery challenge Investigated and potential solutions identified Department of Home Affairs reporting for front line service delivery challenge investigated Process initiated to post challenge on the OpenIX Exchange to find a new solution Not achieved EE Publish Vol 7 Issue 1 and 2 of the “Ideas that Work” : The South African Public Sector innovation Journal published with at least 5 case studies and copies disseminate copies to the public sector, academia and stakeholders Vol 7 Issue 1 of “Ideas that Work”: The South African Public Sector Innovation Journal Published and disseminated   Layout and design for the edition of the Journal done Vol 7 Issue 1 of “Ideas that Work”: The South African Public Sector Innovation Journal published and disseminated Achieved

Overview of the Organisation’s 3rd Quarter Performance No of Targets 3rd Quarter Targets Achieved 3rd Quarter Targets Not Achieved 22 20 2 During the 3rd Quarter period the organisation had 22 Targets and 20 (91%) of the targets were achieved and 2 (9%) were not achieved as at end of December 2016. Mechanisms have been put in place to ensure that the targets that were not achieved will be achieved in the 4th quarter. The full achievement (100%) of quarterly targets gives assurance that the planned annual targets, as per the 2016/17 Annual Performance Plan will be achieved.

3rd Quarter Highlights PROGRAMME 1 The following reports were submitted to the MPSA, DPSA, National Treasury, DPME and Auditor General respectively within the required timeframes. 2nd Quarter Performance Report of 2016/17; 2nd Quarter Interim Financial Statements; Final input of the Adjusted Estimates of National Expenditure 2016/17; and 1st draft of the Estimates of National Expenditure 2016/17. The 2nd draft and final Annual Performance Plan for 2017/18 was approved by the Minister The following policies were finalised and approved Bereavement Policy; Performance Management Development Policy and Procedure; Asset Management and Disposal Policy; Unauthorized, Irregular and Fruitless Expenditure Policy; Overtime Policy and Procedure; Internship Programme and Policy; ICT Operational Policy and Procedure.

3rd Quarter Highlights PROGRAMME 2 Replication of Innovative solutions selected from the 2015 Innovation Awards Finalists: Chris Hani Baragwanath, Far East Rand, Leratong and Tembisa hospitals have been prepared for the implemention of the Blood and Blood Products Saving Programme. The preparation included sessions held with various stakeholders, including heads of departments and staff, Blood Transfusion Committees and the South African National Blood Services, as well as resource mobilisation and training. Chris Hani Baragwanath Hospital will be the first Academic/Tertiary Hospital to implement the Project. As the biggest Academic/Tertiary Hospital implementation in this institution will assist in developing a implementation model for all Academic Hospitals. Capacity Building Workshop For Replication: A capacity building workshop for hospital CEOs and clinical managers from various hospitals in Limpopo was conducted in Polokwane with 34 attendees. The workshop served as a platform to solicit buy-in for the replication of innovative health-related solutions that were entered for the CPSI Awards.

3rd Quarter Highlights Pilot Projects: Bertha Gxowa Hospital Innovation Hub: The CPSI in collaboration with Bertha Gxowa Hospital, UCT’s Bertha Centre and Nedcare, has created and Innovation Hub at the hospital, with the support of the Groote Schuur Hospital. The is to address the most persistent service delivery challenges through innovation.  Some of the initiatives already initiated by the Hub includes systems and initiatives such as: Pharmacy optimisation on reducing waiting times for discharged patients at Bertha Gxowa Hospital. Discharge times have been reduced from 6 hours to less than 2 hours. Clinic for staff with a dedicated doctor to improve employee health and wellness and significatly reduce absenteeism. The Helen Joseph Energy Efficiency project, that is developing a model to reduce the energy use in the hospital, is a multi-year pilot initiated in 2015/16 to address service delivery challenges. In Q3 Monitoring of energy consumption and expenditure continued in preparation of the installation of PV Panels at the Hospital during Q4.

3rd Quarter Highlights The CPSI Innovation Awards Programme: Identified projects were adjudicated and the Finalist workshop was conducted in October 2016. The 2016 Public Sector Innovation Awards Ceremony were hosted on 30 October 2016 For the first time we had a new category on “Saving Government Money” as a response to a request from National Treasury. Limpopo Revenue Enhancement Project was the winning project in ths category. An innovation that eliminated cable theft in a municipality was another strong finalist. The GEMS Award for the best innovation in the health sector was also introduced. 8 projects from the CPSI Awards were entered into the All Africa Public Sector Innovation Awards (AAPSIA) Programme. Of these, two runners-up and one category winner were rewarded during a ceremony held in Addis Ababa on 9 December 2016.

3rd Quarter Targets not achieved Responsible unit Target for 2016/17 as per Annual Performance Plan (APP) 3rd Quarter Target Actual Achievement for the 3rd Quarter Deviation from planned target to Actual Achievement for the 3rd Quarter Comment/ Mechanisms to address differences in targets Performance Rating R&D At least three service delivery challenges investigated and possible solutions identified One service delivery challenge Investigated and potential solutions identified   No service delivery challenge identified for investigation Discussions were held with Department of Justice and Constitutional Development (DoJCD) to support their innovation programme to address challenges Investigation of DoJCD identified challenge will commence and be concluded in Quarter 4 Not Achieved  R&D At least one challenge with no available solution posted on the OpenIX Exchange to initiate a development process One service delivery challenge with no available solution identified and posted on the Open IX Challenge not posted Challenge will be posted in Quarter 4 as solution for previous challenge is still in pilot phase Engagements with The Innovation Hub commenced in Quarter 3 in order to post a challenge from the Department of home Affairs in Quarter 4

Expenditure performance for the 3rd Quarter 2016/17 Description R’000/ % Annual Appropriation 32 094 Expenditure to 31 December 2016 22 118 Budget Remaining 9 976 % Spent (April – December 2016) 68.92%

Expenditure performance for the 3rd Quarter 2016/17  The expenditure per component up to 31 December 2016 is as follows: Description 2016/17 ENE Adjusted Allocations Actual Expenditure 31 December 2016 Budget Unspent % Budget Spent   R'000 % SM 3 703 2 696 1 007 72.80 CRM 7 664 5 512 2 152 71.92 OCFO 6 304 3 908 2 396 62.00 Admin 17 671 12 116 5 555 68.56 RD 3 030 1 854 1 176 61.18 SSI 3 928 2 244 1 684 57.12 EE 7 465 5 904 1 561 79.09 Innovation 14 423 10 002 4 421 69.35 Total 32 094 22 118 9 976 68.92

Expenditure performance for the 3rd Quarter 2016/17 The expenditure per economic classification up to 31 December 2016 is as follows: Description 2016/17 ENE Adjusted Allocations Actual Expenditure 31 December 2016 Budget Unspent % Budget Spent   R'000 % Compensation of Employees 16 792 11 886 4 906 70.78 Goods and Services 15 233 10 232 5 001 67.17 Transfers and Subsidies - Machinery and Equipment 69 Total 32 094 22 118 9 976 68.92

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