SAMDI Briefing to the Portfolio Committee for Public Service and Administration 2007/08 Budget Dr FM Orkin, Director-General, and team Friday, 16 March 2007

2 Presentation Structure ♦Strategic Objectives ♦Report on 2006/07 Outputs ♦Financials: ENE and 2006/07 indications ♦Case study: Monitoring and Evaluation (M&E) training ♦Transformation to the Academy

3 ♦Good Governance: Anti-corruption, Gender and disability, Batho Pele and Public Participation programmes. ♦Capacity of the State: Local Government Strategic Agenda, Skills Assessment and Capacity Building programmes. ♦Macro-organisation of the State: Single Public Service, Integrated Service Delivery and E-Government Service Delivery Projects. ♦Transversal Systems: Integration of Planning and Government-wide Monitoring and Evaluation System. Strategic Objectives Governance & Administration (G&A) Cluster Priorities

4 ♦Develop and administer a training framework for curricula and materials. ♦Co-ordinate the provision of executive development programmes for the Senior Management Service. ♦Develop and implement a quality management and monitoring system. ♦Capacitate departments to identify their human resource development needs. ♦Establish and maintain partnerships and links with national and international management development institutes and training providers. ♦Arrange customised training programmes in support of South Africa’s foreign policy within the African Union (AU) and the New Partnership for Africa’s Development (NEPAD). Strategic Objectives SAMDI 2007/08 to 2009/10

5 ♦Support JIPSA (Joint Initiative On Priority Skills Acquisition) policy formulation and training. ♦Incubate AMDIN (African Management Development Institutes’ Network) and DRC (Democratic Republic of Congo). ♦Contribute to the ASGI-SA (Accelerated and Shared Growth Initiative for South Africa) through concentrated public sector human resource development activities and operations that will strengthen economic growth and promote social inclusion. ♦Monitoring and Evaluation – refer detail slides. ♦Transformation to the Academy – refer detail slides. Strategic Objectives Focus areas for 2007/08 and beyond

6 ♦Finance:  Successful completion of the Financial Management Improvement Plan;  Unqualified Audit Reports for both SAMDI Vote and Trading Account  Implementation of computerised debtors management system (Pastel);  Introduction of a computerised course-booking and quotation system. ♦Internal Audit:  Outsourcing of the internal audit function  Reviews on Strategic Management, and Training and Development. ♦Human Resource Management & Development:  Implementation of PILIR (Policy and Procedure on Incapacity Leave and Ill-Health Retirement); and  Implementation of GEMS (Government Employees Medical Scheme). Strategic Objectives Governance of Resources

7 Delivery Unit Actual PTDs 2005/06 Actual * PTDs 2006/07 % Change 2005/06 to 2006/07 Targeted PTDs 2006/07 % Realised 2006/07 Change Management and Service Delivery Improvement (CM&SDI) 32,30020, ,00075 Corporate Resource Management Training (CRMT) 25,40028, ,10057 Management and Leadership Development (M&LD) 28,10038, , Total 85,80088, ,20076 Report on 2006/07 Outputs Training Statistics: 1 April 2006 – 28 February 2007 (*) Eleven months scaled to twelve months.

8 ♦Total PTDs (Person Training Days) for 2006/07 represent a 2% increase on the previous year. ♦However, 2006/07 PTDs are 24% shortfall on the targeted 2006/07 PTDs (a rather ambitious target). ♦The main cause of drop in CM & SDI PTDs is the reduction in requested training by Social Development, which contributed to high numbers in 2005/06. ♦The CRMT figure (an increase on last year, but short of target) is as a result of the delay in financial management training curricula development and accreditation. ♦PTDs increased strongly in MLD due to a high intake on middle and junior management programmes, including Mentorship. Report on 2006/07 Outputs Training Statistics: 1 Apr – 28 Feb. 2007

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10 Report on 2006/07 Outputs PTDs* delivered in Provinces (to end-Jan. 2007) Distribution of Government Employees per Province Distribution of PTDs per Province 14%18% 5% 10% 14% 6% 2% 11% 5% 2% 3% 5% 3% 10% 18% 6% 31% 20% 12% * PTDs = Person Training Days

11 Report on 2006/07 Outputs Efficiency and Effectiveness ♦Quality Assurance in curriculum dev’t and review. ♦Course-participants’ assessment. ♦User surveys. ♦Monitoring and Evaluation. ♦Proportionately, SAMDI produces the same rate of person training days (PTDs) as, for example, the UK National School of Government.

12 Estimates of National Expenditure SAMDI: Vote 11 Budgeted Expenditure – 2007/08 to 2009/10 Description 2007/08 R’ /09 R’ /10 R’000 Compensation of Employees – Vote 1117,500*19,400*22,400* Goods and Services22,800* 25,800* Current Payments40,30042,20048,200 Capital Assets1,6002,4001,700 Augmentation of SAMDI Training Trading Account 29,200*31,300*37,400* Total Budgeted Expenditure71,100*75,900*87,300* (*) The figures include the additional funding of R 10 million for ’07/8; R 15 million for ’08/9; and R 25 million for ’09/10 respectively, for developments under the new Academy.

13 Estimates of National Expenditure SAMDI: Training Trading Account (TTA) Revenue and Expenditure /08 to 2009/10 Description 2007/08 R’ /09 R’ /10 R’000 Revenue: Course fees38,30043,80048,300 Other non-tax revenue200 Transfers received29,20031,30037,400 Total revenue67,70075,30085,900 Expenditure: Compensation of Employees - TTA31,20033,70037,200 Goods and services34,70039,80046,800 Depreciation Total expenses66,20073,70084,200 Projected Surplus1,5001,6001,700

14 State of Expenditure as at 28 February 2007 SAMDI: Vote 12 (Parliamentary Grant) Economic classification 2005/062006/07 Actual Expenditure as at March’06 R’000 Budget R’000 Budget 11/12 months Actual Expenditure as at Feb’07 R’000 Variance Budget 11/12 to Actual Expenditure R’000 Compensation of Employees10,95614,25413,06612, Goods and Services16,42318,22716,70813,5973,111 Capital Assets3,2203,3683,0871,6281,459 Provincial and Local Government Augmentation of SAMDI Training Trading Account 24,75423,05921,13721, Total55,38758,91854,00848,7495,259

15 State of Revenue and Expenditure SAMDI: Training Trading Account as at 28 February 2007 Economic classification 2005/062006/07 Actual as at March’06 R’000 Budget R’000 Budget 11/12 months Actual as at Feb ’07 R’000 Variance Budget 11/12 to Actual R’000 Course fees37,92133,00030,25028,313-1,937 Augmentation Received24,75423,05921,13721,14912 Total Revenue62,67556,05951,38749,462-1,925 Compensation of Employees18,72427,88525,56120,1815,380 Goods and Services24,14327,80525,48829,105-3,617 Depreciation Provincial & Local Government Total Expenditure43,34255,99851,33349,3022,031 Surplus / (Deficit)19,

16 ♦Vote 12 The under-spending on goods is primarily because of rent budgeted for new office accommodation not occurring yet. ♦ Training Trading Account The surplus projected for the 2006/07 financial year is slight. It will be of assistance for development costs, e.g. curriculum, of the new Academy. State of Revenue & Expenditure SAMDI: Vote 11 & Training Trading Account as at 28 February 2007

17 Gov’t-Wide Monitoring & Evaluation System Background  Aims and objectives  The aim of the system is to contribute to improved governance and enhanced effectiveness of public sector institutions.  The system aims to collect, collate, analyse and disseminate information on the progress and impact of programmes.  Result Areas  Accurate information on progress in the implementation of public sector programmes is updated on an ongoing basis;  Information on the outcomes and impact achieved by government is periodically collected and presented;  The quality of monitoring and evaluation practices in government and public bodies is continuously improved.

18 Gov’t-Wide Monitoring & Evaluation System Institutional Responsibilities Principles and Standards Reporting and Databases Capacity Building Work Stream Lead Agency OPSCDPSASAMDI Partner Agencies Presidency Stats SA National TreasurySITADPSA DPLG National Treasury

19 Gov’t-Wide Monitoring & Evaluation System SAMDI Capacity Building Strategy ♦Progress Report  Terms of reference developed for Task Team.  15 workshops on M&E for programme and project management (340 officials).  Initial needs analysis on provincial M&E capacity.  Consultation with key stakeholders (8 March ‘07). ♦Plan of Action  Research on M&E training needs - SMS, MMS, JMS, practitioners (March ‘07).  Determine current providers of M&E - HEIs, privates, NGOs etc. (March ‘07).  Undertake training needs analysis for M&E (May ‘07).  Develop M&E training programme (Sept ‘07); roll-out (Nov. ‘07).

20 Transformation to the Academy Indication of demand: ENE training spend

21 Transformation to the Academy SAMDI: Need for paradigm shift ♦R1 billion p/a spent in departments but 43% of staff in provincial departments reported no training in ♦International benchmarks suggest at least 5 days training per annum:  For approx. 250,000 middle and junior managers requires 1,25 million PTDs p.a.;  Allowing for 60% of training already occurring in departments still requires 0,5 million PTDs p.a. ♦For induction, staff turn-over is people p.a. requiring another 0,2 million PTDs. ♦Thus, the total-demand driven requirement is 0,7 million PTDs: nearly 10 times SAMDI’s present output!

22 Transformation to the Academy Vision and activities ♦Three “mantras”  Provision to facilitation.  Competition to collaboration.  Selective coverage to massification. ♦First main stream of activity  Executive development programmes for SMS.  Entrant, lower and upper SMS: programmes, courses and events.  In collaboration with universities and counterparts. ♦Second main stream of activity  “Massified” management training for junior and middle managers.  Training frameworks of curriculum, materials; monitoring and evaluation to regulate numerous outsource providers;  The induction programme for new entrants at all levels.

23 Transformation to the Academy 2006/7 sources of SAMDI outputs

24 Transformation to the Academy Learning frameworks Elementary Intermediate Advanced Executive Depth of Learning Levels of Performance Core Learning Areas Project Management Financial ManagementHR Management Change Management Service Delivery Innovation CommunicationQuality Management Note: Core learning areas and levels of performance for illustrative purposes only Overview Some detail More detail Leadership

25 Transformation to the Academy Projects for Internal Task Teams Preparing for the commissioning of audits of existing junior and middle management courses. Planning the training framework and the phases of its implementation. Enhancing and integrating the monitoring and evaluation system. Streamlining accreditation processes for offerings under the training framework. Planning in detail a massified Induction programme.

26 Preparing for the widespread mobilisation of networks of external service providers. Planning the differentiated executive development programmes for upper, lower and entrant SMS members. Recasting financial and HR delegations and policies. Planning and scoping an operational system for organizing outsource training. Transformation to the Academy Projects for Internal Task Teams (cont.)

27 Transformation to the Academy The challenging way forward ♦Executive development programmes. ♦Learning framework for massified middle and junior management learning. ♦Curricula and material development, guality assurance and accreditation. ♦Provider and user relations; M&E of large-scale provision ♦Provincial infrastructure. ♦Research capacity and networking. ♦Continental support for Management Development Institutes, international relations. ♦Impending restructuring process.

28 Siyabonga Thank you Rolivhuwa Dankie Nakhensa Re a leboga