1. Briefing to the Portfolio Committee on Public Service and Administration Palama Annual Report 2008/09 Acting Director-General and Branch Heads Wednesday, 28 October 2009 Cape Town

2. 2 Purpose  To present the Palama Annual Report for the 2008/2009 financial year

3. 3 Focus Areas  Mandate and strategic objectives  Programme performance  Human resources  Financial performance  Corporate governance  Audit findings  Conclusion

4. 4 2008/2009 Annual Report of Palama Mandate  The legislative mandate is to provide or oversee the provision of training on a meaningful scale in all three spheres of government guided by:  The Constitution of the Republic;  Public Service Act of 1999, as amended, Section 4;  Policy pronouncements, inclusive of the:  Medium Term Strategic Framework;  President’s annual State of the Nation Address;  Minister’s annual Budget Vote speech; and  The government Programme of Action.  Provide training, leadership, and management development in the public service in order to improve performance and service delivery, and  Substantially increase the availability of training interventions/opportunities for the public service.

5. 5 Strategic objectives  Delivery of the Academy services;  Relationships with external stakeholders;  Lateral contribution to the organisation;  Corporate governance; and  Transformation of SAMDI to the Academy

6. 6 2008/2009 Annual Report of Palama Programme performance  Highlights:  Palama was launched as successor to SAMDI on 1 st August 2008  A 29% increase in training days from 104 292 in 2007/08 to 134 375 in 2008/09, with a 45% increase in the number of officials trained.  An increased number of public servants trained in accredited Emerging, Advanced and Executive management development programmes (majority being women)

7. 7 2008/2009 Annual Report of Palama Programme performance  Highlights continued:  Launched Palama’s contact centre – 012 441 6777  More access to relevant and responsive training programmes:  Gender Mainstreaming; HIV and AIDS; Monitoring and Evaluation; Ethics and Anti-corruption; and Induction, amongst others.  Secured R70m from CIDA for regional capacity development programme over five years  Piloted and delivered the Executive Development Programme for senior managers  Facilitated training of trainers for 71 participants from 31 African countries (AMDIN) through a partnership with JICA.

8. 8 2008/2009 Annual Report of Palama Programme performance (programme/course menu) Leadership Capacity Managing Public Finances Batho Pele and Service Delivery Human Resource Management Good Governance  Executive Development Programme  Advanced Management Development Programme  Emerging Management Development Programme  Foundation Management Programme  Mentorship Programme  Accelerated Development Programme  Khaedu  Supply Chain Management  Asset Management  Bid Committee Training  Contract Management  Revenue management  Expenditure Management  Risk Management  PFMA for Non- financial Managers  Bank Reconciliation  Internal Audit  Standard Chart of Accounts (SCOA)  Excellent Customer Service  Batho Pele Improvement: Service Delivery for Operational Managers  Service Delivery Implementation Plans  Massified Induction Programme  Wamkelekele Induction  Job Evaluation (suite)  Hearing Procedures  Industrial Relations Skills Development Programme  Introduction to HRM  Monitoring and Evaluation  Report Writing  Diversity Management  Disability Management  Implementation of Integrated Disability Strategy  Gender Awareness and mainstreaming  HIV/AIDS Development programme for Government planners  Ethics Management  Minimum Anti- Corruption

9. 9 2008/2009 Annual Report of Palama Programme performance (Person Training Days 2007/08 and 2008/09)

10. 10 2008/2009 Annual Report of Palama Programme performance (Breakdown of Person Training Days 2008/09)

11. 11 2008/2009 Annual Report of Palama Human Resources  Transformation of SAMDI into PALAMA resulted in a new organogram:  237 Posts created, of which 130 were filled within the financial year.  42 of the total employed were at SMS level.  36 officials left the department (for breakdown check p142).  Performance management:  All members of SMS signed performance agreements by 30/09/2008.  Personnel costs:  Personnel expenditure is R44,743m, representing 19% of total expenditure,  Average personnel cost per employee is R342,000

12. 12 2008/2009 Annual Report of Palama Human Resources – Employment Equity profile Male AfricanColouredIndianWhiteTotal 4235959 Female36862171 Total7811 30130 People with Disabilities112 Total male to female ratio as a percentage is 45% to 55%. Employees with disabilities are 1.5% of the total staff complement.

13. 13 2008/2009 Annual Report of Palama Financial performance – Expenditure Patterns  Full appropriation from Parliament of R105.5m was spent, with a variance of R162,000 (0.15%)  Compensation of Employees expenditure decreased by 11.3% from R13.3m to R11.8m due to vacancies that were not filled,  Goods and services expenditure decreased by 15.9% from R52.9m to R44.5m mainly due to the reduction in the operating lease payments,  Expenditure on capital assets reduced by 14.5% from R7.6m to R6.5m as the costs of furnishing the new premises were incurred in the previous financial year,  Transfer payment from the Vote to the Trading Training Account (TTA) was reduced by R8.7m.

14. 14 2008/2009 Annual Report of Palama Financial performance - Expenditure Patterns  Total revenue (including augmentation from the Vote) increased by R9.2m from R115.70m in 2007/08 to R124.9m in 2008/09,  Income from course fees rose by R28.9m from R53.4m to R82.3m due to appreciable increase in training activity.  Total expenditure in the TTA increased by R51.6m from R85.5m in 2007/08 to R137.1m in 2008/09 mainly due to increased training activity and expenditure on outsourced training.  Surplus for the year decreased by R35.9m from R37.7m in 2007/08 to R1.8m in 2008/09, mostly due to an increase in administration cost and the R28 million allocation for induction training.

15. 15 2008/2009 Annual Report of Palama Financial performance - Utilisation of donor funds  Palama received R34.4m for donor funded projects, of which R17.8m was spent,  The remaining R16.6m will be utilised in 2009/10 as per project implementation plans agreed with donors.

16. 16 2008/2009 Annual Report of Palama Financial performance - Utilisation of donor funds Name of DonorPurposeOpening Balance RevenueExpenditureClosing Balance R’000 1. Received in Cash 1.1 Local Aid Assistance African Renaissance FundTraining-23,697(8,873)14,824 1.2 Foreign Aid Assistance Aid assistance unutilised2810,742(8,718)2,2052 CIDA – Gender MainstreamingTraining(192)4,400(3,766)442 CIDA – Public Sector TrainingTraining-4,858(3,586)1,272 Government of SwedenTraining192-- Government of GermanyTraining-1,484(1,366)118 Common WealthTraining28-- Aid assistance receivable(250)-(68)(318) Government of the NetherlandsTraining(1)-(68)(69) Government of FlandersTraining(249)-- Total foreign aid assistance in cash(222)10,742(8,786)1,734 Total aid assistance received in cash(222)34,439(17,659)16,558 2. Received in Kind Total aid assistance received in kind2,0482,182(4,230)-

17. 17 2008/2009 Annual Report of Palama Corporate Governance Environment  Strategic Risk Register revised and aligned to the strategic objectives of the Academy  Risk Management Committee reviewed the Risk Management Strategy, Risk Management Policy and Risk Committee Charter  Audit committee approved a three-year rolling internal audit strategic plan  Fraud prevention plan and fraud policy and response plan developed  Five audit committee meetings were held during the period under review

18. 18 2008/2009 Annual Report of Palama Audit Findings  Unqualified audit report for the 6 th successive year  Attention only drawn on one matter:  Non-compliance with legislation – Strategic HR plan was not updated for the year ended 31 March 2009  No significant delays experienced by the AG during the audit, on-time availability of information from Palama  Financial management systems are appropriate for adequate information management and preparation of the financial statements. Palama had substantially addressed the prior year audit findings.  Adequate control processes and procedures developed and implemented to ensure the accuracy and completeness of reported performance information.

19. 19 Conclusion  While acknowledging the achievements in the 2008/2009 financial year, we should however be mindful of the challenges posed by the developmental state.  The mandate and the strategic direction should first respond to the needs of a developmental state and secondly Palama must be repositioned to respond to the Medium Term Strategic Framework of government for the period 2009-2014