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

2. 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

3. 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.

4. 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.

5. 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

6. 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.

7. 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.

8. 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.

9. 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.

10. 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.

11. 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

12. 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%

13. 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

14. 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

15. THANK YOU