KEY PERFORMANCE AREAS REQUIRING THE ATTENTION OF EAs AND HoDs PRESENTATION TO THE PORTFOLIO COMMITTEE FOR PUBLIC SERVICE AND ADMINISTRATION 13 JUNE 2012 11 6/14/12 1

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Contents of this Presentation Overarching imperative: improve the quality of service delivery. PRIORITY ONE: Better performance management PRIORITY TWO: Improve accountability through more effective financial management PRIORITY THREE: Use people better through improvements in Human Resource Management PRIORITY FOUR: Root out corruption and maladministration by addressing ethics and integrity CONCLUSION: Acting decisively on what we know needs to be done 33 6/14/12

Overarching Imperative: Improve the Quality of Service Delivery The proof of public service performance is the quality of service delivery, especially to the most marginalised and vulnerable populations Evidence suggests (very clearly) that performance is poor and in some cases getting worse Improving the quality of service delivery requires that a number of areas of public management be addressed urgently 44 6/14/12

Priority One: Better Performance Management Improve the quality of strategic planning and address the “black box” that characterises so much policy, especially that which seeks to address poverty and social and economic development Improve the quality of performance reporting and act on what is revealed from such reporting Improve performance management of personnel and impose sanctions for non performance In 2010/11 the AG found that – 54% departments have difficulty in developing targets that are specific and measurable 41% of departments have a lack of evidence to support the information in the annual performance report 55 6/14/12

PRIORITY TWO: Improve accountability through more effective financial management Address matters raised in Audit Opinions Put controls in place to prevent unauthorised, irregular as well as fruitless and wasteful expenditure Address risk management (only 66% of departments have adequate risk management systems in place) 66 6/14/12

77 PRIORITY TWO: Improve accountability through more effective financial management Expenditure vs performance Department % of budget spent Performance 2010/11 2011/12 Labour 99.5% 43.4% Dti 93.6% 98.9% 51% Agriculture 97.4% 99.3% 35% COGTA 99.7% 96% 44% Public Works 89.8% 88.8% Mineral Resources 99.9% 99.1% 63% Energy 97.9% 99.6% 47% 6/14/12 7

88 PRIORITY TWO: Improve accountability through more effective financial management Expenditure vs performance (cont) Department % of budget spent Performance 2010/11 2011/12 Transport 99.2% 67% Basic Education 89.4% 91.4% 47% Health 96.6% 99% 37% RDLR 97.7% 98.3% 41% Justice 99.9% 50% SAPS 100% 98.9% 59% Correctional Services 95.3% 98% 56%  Communication 66.7% 89.5% 42%  6/14/12 8

PRIORITY TWO: Improve accountability through more effective financial management Audit Outcomes for national departments 99 6/14/12

NO OF NATIONAL DEPARTMENTS The PFMA requires accounting officers to take reasonable steps to ensure that unauthorised, irregular as well as fruitless and wasteful expenditure is prevented and detected Leadership’s inability to address issues relating to financial discipline and the failure to reform the systems and internal controls for financial reporting, are amongst the reasons for the poor financial performance The PFMA requires accounting officers to take reasonable steps to ensure that unauthorised, irregular as well as fruitless and wasteful expenditure is prevented and detected Leadership’s inability to address issues relating to financial discipline and the failure to reform the systems and internal controls for financial reporting, are amongst the reasons for the poor financial performance 2009/10 NO OF NATIONAL DEPARTMENTS AMOUNT UNAUTHORISED EXPENDITURE Incurred 6 R802m IRREGULAR EXPENDITURE 34 R2.3b FRUITLESS AND WASTEFUL EXPENDITURE 28 R1.6b 1010 6/14/12

PRIORITY THREE: Use our people better through improvements in Human Resource Management Fill vacancies High turnover rate in respect of professionals/SMS members Although the vacancy rate is high, organograms are not always fully funded Long time to fill vacancies impacts on service delivery Develop skills Distribution of personnel is skewed in some departments (dominated by lower and semi-skilled employees) Manage misconduct conclusively and ruthlessly 1111 6/14/12

PRIORITY THREE: Use our people better through improvements in HRM 12121212 PRIORITY THREE: Use our people better through improvements in HRM Department (Dec ‘11) Vacancy rate Average period vacant (months) Prof/SMS Rest Labour 8.6% 7% 9.8 Dti 10.7% 14.2% 5 COGTA 27.2% 16.3% 20.8 Public Works 20.8% 11.7% 23.1 Agriculture 19.1% 12.1% 7.41 Mineral Resources 15.1% 14.7% 15.8 Energy 9.41% 10.5% 5.3 Transport 25.2% 27.9% 29.6 Basic Education 36.6% 34.8% 12.7 6/14/12 12

PRIORITY THREE: Use our people better through improvements in HRM 13131313 PRIORITY THREE: Use our people better through improvements in HRM Department (Dec ‘11) Vacancy rate Average period vacant (months) Prof/SMS Rest Health 61.1% 54% 25 RDLR 12.9% 18.2% 4.7 Justice 18.4% 9.5% 9.4 SAPS 13.7% 5.4% 46 Correctional Services 30.44% 13.8% 9.2 Communication 38.70% 36.2% 31.1 6/14/12 13

PRIORITY THREE: Use our people better through improvements in HRM 14141414 PRIORITY THREE: Use our people better through improvements in HRM Skills profile1 Department Lower Semi Skilled Professionals/SMS Labour 40.9% 47.3% 10.8% 1.1% Dti 9.6% 31.1% 42.8% 16.6% COGTA 17.3% 27% 30.4% 25.3% Public Works 50% 26.4% 20.8% 2.8% Agriculture 56.4% 26.9% 15.2% 1.4% Mineral Resources 23.5% 27.9% 41.2% 7.4% Energy 13.1% 28.6% 45.8% 12.6% Transport 10.3% 29.6% 41% 19.1% 6/14/12 2010/11 Annual Report 14

PRIORITY THREE: Use our people better through improvements in HRM 15151515 PRIORITY THREE: Use our people better through improvements in HRM Skills profile1 (cont) Department Lower Semi Skilled Professionals/SMS Basic Education 12.3% 26.0% 50.3% 11.4% Health 31.7% 30.7% 29.3% 8.3% RDLR 9.0% 58.7% 28.7% 3.6% Justice 53.8% 23.6% 11.0% 11.6%2 SAPS 55.8% 39.8% 4.0% 0.4% Correctional Services 29.4% 59.2% Communication 6.2% 27.0% 36.5% 30.3% 6/14/12 2010/11 Annual Report Includes Magistrates and Judges 15

PRIORITY THREE: Use our people better through improvements in HRM 16161616 PRIORITY THREE: Use our people better through improvements in HRM Critical Skills Shortages 1 Department Critical skills Labour Mine Health, Safety Engineers, Medical Practitioners Dti Economists, Trade and Industry Advisors COGTA Senior Managers Public Works Architects, town and traffic planners, Engineers, Quantity surveyors Agriculture Engineers, Engineering Technician, Geologists, geophysicists, hydrologists, natural sciences Mineral Resources Engineer, Cartographers, IT, Legal Energy Library Transport “On the sector scares skills list” Basic Education Educators 6/14/12 1 2010/11 Annual Report and other sources 16

Critical Skills Shortages 1 (cont) 17171717 Critical Skills Shortages 1 (cont) Critical Skills Shortages 1 (cont) Department Critical skills Health Chemists, Financial related RDLR Architects, Surveyors Justice Building and Property Caretakers, Social Workers SAPS Aircraft Pilots; Architects; Chemists (Physical Science, Chemical Science, Pharmacists & Health Science); Engineer & related professionals (Electronic & Engineering science); General Legal Administration (Attorneys, Legal Administration & Legal related); Natural science; Police (Functional Personnel SAPS) and Psychologists & vocational science. Correctional Services Psychologists, vocational counselors, senior managers Communication Communication and Information Related 6/14/12 1 2010/11 Annual Report and other sources 17

PRIORITY FOUR: Root out corruption and maladministration by addressing ethics and integrity Follow up on every case reported to the National Anti- Corruption Hotline Systematically implement the Financial Disclosures Framework and manage potential conflicts that the senior managers may have between their private business interests and their official responsibilities Act decisively to punish and prevent financial misconduct 1818 6/14/12

PRIORITY FOUR: Root out corruption and maladministration by addressing ethics and integrity National Anti-Corruption Hotline Cases referred to Departments Provincial Departments 4843 National Departments 4599 Public Bodies 427 TOTAL 9869 Feedback received 1994 1822 287 4103 Cases closed 1102 1312 238 2652 42% 27% 1919 6/14/12

Financial Disclosures NATIONAL DEPARTMENT/PROVINCE COMPLIANCE RATE National Departments 97% Eastern Cape 87% Free State 84% Gauteng 95% Kwazulu-Natal Limpopo 98% Mpumalanga 92% Northern Cape North West Western Cape 100% OVERALL PROVINCIAL SUBMISSION COUNTRY TOTAL 2020 6/14/12

PRIORITY FOUR: Root out corruption and maladministration by addressing ethics and integrity Financial Misconduct The number of cases of financial misconduct reported to the PSC is suspiciously low given the high rate of unauthorised, irregular and fruitless and wasteful expenditure Increase in the cost of financial misconduct over the past 5 years Insufficient investigative capacity 2121 6/14/12

Conclusion: Acting decisively on what we know needs to be done 22222222 Conclusion: Acting decisively on what we know needs to be done Little of this analysis is new and has been presented to Parliament repeatedly over a number of years The lack of significant improvement must be addressed Public Service performance must improve in critical areas for intervention by the developmental state (social, economic, infrastructure) The Public Service must do things differently and show progress to raise confidence of the Executive, Parliament and society broadly Strengthen capacity in key areas to get things done- Human Resources Management Skills shortage and distribution Monitoring and Evaluation Mobilise public participation/ensure effective community participation Strengthen Parliamentary oversight to engage on performance information 2222 6/14/12

THANK YOU! 2323 6/14/12 23