Presentation to Portfolio Committee November 2017 CENTRE FOR PUBLIC SERVICE INNOVATION 2ND QUARTER PERFORMANCE REPORT (JULY 2017-SEPTEMBER 2017)

OVERVIEW Executive Summary Purpose and scope of the report Overview of the Organisation’s 2nd Quarter Performance Progress on 2nd Quarter Targets

Executive Summary This is a preliminary report on the organisation’s progress with regards to the achievement of the 2nd Quarter (1 July - 30 September 2017) on the organisation’s 2017/2018 Annual Performance Plan (APP). 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.

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). This 2nd Quarter Report highlights the overall performance of the organisation.

Overview of the Organisation’s 2nd Quarter Performance No of Targets 2nd Quarter Targets Achieved 2nd Quarter Targets Not Achieved 19 16 3 During the 2nd Quarter period the organisation had 19 Targets, 16 (84%) of the targets were achieved and 3 targets (16%) were not achieved by 30 September 2017. Mechanisms have been put in place to ensure that the targets that were not achieved will be achieved in the 3rd and 4th quarters.

Progress on 2nd Quarter Targets Target no Responsible unit Target for 2017/18 as per Annual Performance Plan (APP) 2nd Quarter Target Actual Achievement for the 2nd Quarter Deviation from planned target to Actual Achievement for the 2nd Quarter Comment/ Mechanisms to address differences in targets Performance Rating 1.  SM Review the organisation’s Strategic Plan and develop the Annual Performance Plan and submit to the Executive Authority (for tabling in Parliament), DPSA, DPME, AGSA and the National Treasury within the required time frames to comply with legislation, frameworks and prescripts Review the Strategic Plan, develop 1st draft of the Annual Performance Plan and submit to Executive Authority, DPSA, DPME and by 30 August 2017 1st draft of the 2018/19 Annual Performance Plan submitted to None Achieved 2. SM Quarterly performance reports submitted to the Executive Authority, DPSA, DPME and the National Treasury within 30 days from the end of each quarter 1st quarter performance report for 2017/18 developed and submitted to by 30 July 2017 1st quarter performance produced and

Progress on 2nd Quarter Targets Target no Responsible unit Target for 2017/18 as per Annual Performance Plan (APP) 2nd Quarter Target Actual Achievement for the 2nd Quarter Deviation from planned target to Actual Achievement for the 2nd Quarter Comment/ Mechanisms to address differences in targets Performance Rating 3.  SM Annual Report developed and submitted to AGSA for audit, the National Treasury and to the Executive Authority for tabling in Parliament within the required timeframes Audited Annual Report finalized and submitted to National Treasury and Executive Authority for tabling in Parliament by 31 August 2017. None Achieved 4.  CRM At least two (2) CRM policies and/or strategies developed and/or reviewed and implemented, annually Two (2) CRM policies, procedures, plans or strategies consulted One policy (E-mail policy) approved.    Second policy (Gifts and donations), consultation was done.

Progress on 2nd Quarter Targets Target no Responsible unit Target for 2017/18 as per Annual Performance Plan (APP) 2nd Quarter Target Actual Achievement for the 2nd Quarter Deviation from planned target to Actual Achievement for the 2nd Quarter Comment/ Mechanisms to address differences in targets Performance Rating 5.   ITM Quarterly ICT Corporate Governance reports developed and submitted to EXCO for approval Submit the 1st Quarter report on ICT Corporate Governance to the executive management by 31 July 2017 1st Quarter report on ICT Corporate Governance submitted to the executive management by 31 None Achieved  6.  OCFO Three (3) budget review documents prepared and submitted to the DPSA and the National Treasury Co-ordinate and submit the MTEF budget review to DPSA and the National Treasury. draft of the AENE National Treasury MTEF report submitted to DPSA and NT   ANEN 1st draft submitted to DPSA and NT 7.  OCFO Annual and quarterly Financial Statements, free from material misstatements, prepared and submitted to AGSA, DPSA and the National Treasury Submit 1st Quarter Financial Statements to AGSA, DPSA and the National Treasury by 31 July 2017 1st quarter financial statements submitted to DPSA and NT by 31 July 2017

Progress on 2nd Quarter Targets Target no Responsible unit Target for 2017/18 as per Annual Performance Plan (APP) 2nd Quarter Target Actual Achievement for the 2nd Quarter Deviation from planned target to Actual Achievement for the 2nd Quarter Comment/ Mechanisms to address differences in targets Performance Rating 8. OCFO 100 Percent of all undisputed invoices paid within 30 days 100 percent of all invoices paid within 30 days on receipt of a valid invoice and reported to National Treasury within 15 days from the end of each month each month. None Achieved  9.   Annual Organisational Procurement Plan submitted to the Chief Procurement Officer and implementation monitored and reported quarterly Monitor and report on the 2017/18 Organisational Procurement Plan by 31 July 2017 Report on the 2017/18 Procurement Plan submitted to Chief Procurement Officer by 31 July 2017

Progress on 2nd Quarter Targets Target no Responsible unit Target for 2017/18 as per Annual Performance Plan (APP) 2nd Quarter Target Actual Achievement for the 2nd Quarter Deviation from planned target to Actual Achievement for the 2nd Quarter Comment/ Mechanisms to address differences in targets Performance Rating 10.  R&D Investigate at least three (3) service delivery challenges to identify possible solutions One (1) service delivery challenge investigated and where possible, potential solutions identified None The investigation of the challenge was postponed to the next quarter as the officials are currently in the process of implementing two solutions originating from previous challenges. (Home Affairs Frontline service delivery reporting and Maternal Referral System) The next challenge will be investigated when resources become available in the 3rd quarter. Not achieved  11. SSI At least one (1) new pilot project initiated to address service delivery challenges over a short-term period Stakeholder engagement, risk analysis, and project planning The Hospital Patient flow Management: Stakeholders in two sites have been engaged. A risk analysis and planning for the project have been undertaken. Achieved

Progress on 2nd Quarter Targets Target no Responsible unit Target for 2017/18 as per Annual Performance Plan (APP) 2nd Quarter Target Actual Achievement for the 2nd Quarter Deviation from planned target to Actual Achievement for the 2nd Quarter Comment/ Mechanisms to address differences in targets Performance Rating 12.  SSI At least one (1) new pilot project initiated to address service delivery challenges over a multi- year period Stakeholder engagement, risks analysis and drafting of the project plan Chris Hani Baragwanath Hospital Pharmacy Automation. Stakeholder session held where risk analysis and drafting of Project plan was done Home Affairs Front Line Service Delivery Reporting Tool: stakeholder engagement done, risks identified and project plan drafted None Achieved  13. Identify, facilitate and support two (2) CPSI award winning and/or other innovation projects for replication Risk/threat analysis and stakeholder engagement 1. Mpumalanga Tele-radiology Project: Stakeholders engaged and working session on risk and threat analysis held. 2. Blood Optimisation-Free State Provincial Health stakeholders engaged, including a workshop held to conduct a Risks/threat analysis. 3. Blood Optimisation-Western Cape: Workshop held to engage stakeholders and analyse the risks for implementation

Progress on 2nd Quarter Targets Target no Responsible unit Target for 2017/18 as per Annual Performance Plan (APP) 2nd Quarter Target Actual Achievement for the 2nd Quarter Deviation from planned target to Actual Achievement for the 2nd Quarter Comment/ Mechanisms to address differences in targets Performance Rating  14. SSI At least 330 officials and other partners accessed the MMIC 85 officials and other partners accessed 116 Officials and other partners accessed the MMIC 31 more Officials and other partners accessed the MMIC None Achieved 15.  EE At least four (4) projects per category identified and recognised through the CPSI awards programme Promotion, marketing and soliciting of entries Awards were promoted through various means and to departments, including in the CPSI Journal and social media. 83 entries were received by the end of the quarter

Progress on 2nd Quarter Targets Target no Responsible unit Target for 2017/18 as per Annual Performance Plan (APP) 2nd Quarter Target Actual Achievement for the 2nd Quarter Deviation from planned target to Actual Achievement for the 2nd Quarter Comment/ Mechanisms to address differences in targets Performance Rating  16. EE Host the annual public sector innovation conference as a platform to entrench innovation Conference programme finalised. Marketing of the Conference. Hosting of the conference The conference was marketed and held on 30-31 August 2017 under the theme Positioning Public Sector Innovation for the 4th Industrial Revolution None Achieved 17.  Vol 8 Issue 1 and 2 of "Ideas that Work": The South African Public Sector Innovation Journal published Vol. 8 Issue 1 of "Ideas that Work": The South African Public Sector Innovation Journal published Volume 8 Issue 1 of Innovation Journal was published 18.    Four (4) training sessions on "Leading Innovation in the Public Service" held and attended by public officials Two (2) training session on Leading Innovation in the Public Service conducted No workshop was held due to delays in the procurement process as one of the sponsors of the workshops withdrew Two workshops were not held as planned Two workshops will be held in the 3rd quarter once procurement is finalised Not achieved

Progress on 2nd Quarter Targets Target no Responsible unit Target for 2017/18 as per Annual Performance Plan (APP) 2nd Quarter Target Actual Achievement for the 2nd Quarter Deviation from planned target to Actual Achievement for the 2nd Quarter Comment/ Mechanisms to address differences in targets Performance Rating 19  EE Upload 1300 content items on innovation, public administration and finance onto the UNPAN Portal 325 SADC public administration, finance and innovation documents, news and events uploaded on the UNPAN Portal 228 uploads during the quarter under review Target missed by 97 uploads due to capacity constraints Additional uploads will be done in the 3rd and 4th quarters Not achieved

2ND QUARTER FINANCIAL STATEMENTS FOR THE 2017/18 FINANCIAL YEAR

Appropriation statement (expenditure for period 1 April 2017 to 30 September 2017) Programme 1: Administration The amount received in Programme 1: Administration was R9.4 million for the period 1 April 2017 to 30 September 2017. The spending for the same period was R8.6 million.   The variance between projection and spending of R800 000 can be explained as follows: Compensation of employees: Two posts were only filled in July 2017 and not in April 2017 as original anticipated, resulting in a saving of R294 000. A saving of R 522 000 was identified from audit fees, which will be directed to other areas. Programme 2: Public Sector Innovation The amount received in Programme 2: Public Sector Innovation amounted to R7.4 million for the period 1 April 2017 to 30 September 2017. The spending for the same period was R6.8 million. The variance between projection and spending of R600 000 can be explained as follows: The projected payment to Innovation Hub will only be processed in the 3rd quarter. Projected expenses for S&T were lesser than anticipated, due to cost containments.

Appropriation statement (expenditure for period 1 April 2017 to 30 September 2017) Programme 2017/18 Final Appropriation R'000 Preliminary Expenditure R'000 Variance R'000 Expenditure as % of final appropriation % 1. Administration 18 675 8 614 10 061 46.1% 2. Public Sector Innovation 15 380 6 848 8 532 44.5%   TOTAL 34 055 15 462 18 593 45.4% Departmental receipts 21 Aid assistance 3 407 Actual Revenue per Statement of Financial Performance 37 483 Add: 2 245 Actual Expenditure per Statement of Financial Performance 17 707

Per Economic Classification Expenditure as % of final appropriation % Appropriation statement (continued expenditure for period 1 April 2017 to 30 September 2017) Per Economic Classification 2017/18 Final Appropriation R'000 Actual Expenditure R'000 Variance R'000 Expenditure as % of final appropriation % Current payments 33 464 15 085 18 380 45.0% Compensation of employees 18 360 8 564 9 796 46.6% Goods and services 15 104 6 521 8 584 43.2% Transfers and subsidies 1 - 0.0% Departmental agencies and accounts Payments for capital assets 590 377 213 63.9% Machinery and equipment TOTAL 34 055 15 462 18 593 45.4%

Expenditure as % of final appropriation % Appropriation statement (continued expenditure for period 1 April 2017 to 30 September 2017) Description 2016/17   Final Appropriation R'000 Actual Expenditure R'000 Variance R'000 Expenditure as % of final appropriation % Strategic Management 3 817 1 744 2 073 45.7% Corporate Resource Management 8 718 4 151 4 562 47.6% Office of the Chief Financial Officer 6 140 2 719 3 426 44.3% PROGRAMME 1: ADMINISTRATION 18 675 8 614 10 061 46.1% Research and Development 3 682 1 757 1 925 47.7% Solution Support and Incubation 3 347 1 489 1 858 44.5% Enabling Environment 8 351 3 602 4 749 43.1% PROGRAMME 2: PUBLIC SECTOR INNOVATION 15 380 6 848 8 532 Total 34 055 15 462 18 593 45.4%

30 day payments All Payments were made within 6.72 days of receipt of an invoice. 193 payments were processed from 1 April 2017 to 30 September 2017

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