1. 1ST QUARTER PROGRESS ON THE 2015/16 WORKPLAN
Portfolio Committee on Public Service and Administration as well as Planning, Monitoring and Evaluation
9 September 2015

2. PRESENTATION OUTLINE
The Portfolio Committee requested a briefing on the first quarter performance on the Annual Performance Plan for the 2015/16 financial year.
During the period under review, the PSC progressed well with the implementation of the outputs on its Workplan.
Due to the limited funding available for Goods and Services, the PSC revised its Workplan for this financial year in order to align it with available funds. The number of outputs on the Workplan were reduced, research methodologies were adjusted and the scope of some projects was revised.
This presentation covers:
An overview of performance per Branch
Organisational matters
Engagement with stakeholders
Concluding remarks 2

3. BRANCH: LEADERSHIP AND MANAGEMENT PRACTICE

4. BRANCH: LMP Grievance Management
As at 30 June 2015, the PSC had 248 grievances, of which 95 were carried over from 2014/15 and 153 were lodged during the 2015/16 financial year.
158 (64%) grievances were finalised/closed.  
A Technical brief on the resolution of grievances for the period October March 2015 was produced.
The PSC is conducting a trends analysis on grievances to provide a statistical overview in respect of the number and nature of grievances lodged in the Public Service. 4

5. BRANCH: LMP (2)
The PSC is producing a Grievance Newsletter to empower departments to investigate grievances and interpret/ develop policies.
An assessment of the Office of the State Attorney & Chief State Law Advisor is being conducted and questionnaires were developed and disseminated to selected stakeholders. The aim is to assess the organizational structure and operational processes of the Offices.
Various workshops on grievance management were conducted at national and provincial level.
An audit of HR and financial management in the Western Cape was concluded. The purpose was to establish a benchmark for the appropriate HR and financial management skills required for senior managers.
Workshops on grievance management in the
Free State: conducted with 6 departments
Limpopo: conducted with 13 workshops with 5 departments targeting employees from salary levels 9 – 12 and with SMS members 5

6. BRANCH: LMP (3)
An assessment of the effects of organisational restructuring and its effect on service delivery will be conducted in Gauteng Province.
A factsheet on irregular appointments in the Public Service is being compiled.
In order to determine the underlying causes for the delays in the processing of pension payouts, and to identify best practice in this area, an assessment of the management of service terminations and pension payouts has commenced. Engagements will also be held with the Government Pensions Administration Agency, pensioners and beneficiaries.
A report on the audit of recruitment and selection processes in Gauteng, Department of Finance is being concluded. 6

7. BRANCH: LMP (4)
An assessment of the handling of disciplinary cases is being conducted with the aim of improving the management of discipline and labour relations in the Public Service.
The PSC submitted a report to the Presidential Remuneration Review Commission on the analysis of Conditions of Service and salary scales of Educators vs Public Servants.
Engagements commenced with the Eastern Cape Department of Health to provide support for the audit Human Resources Management in the Department. 7

8. BRANCH: MONITORING AND EVALUATION

9. BRANCH: M&E
The PSC is developing an integrated data centre on the Public Service to draw information and provide analysis to stakeholders.
Preparations commenced to host a Roundtable Discussion on the 2014 SOPS findings and recommendations.
An Annual report on the tracking of PSC recommendations for the 2012/13 and 2013/14 financial years is being finalised.
Report on the evaluation of the capacity of the Public Service to operate collaboratively with focus on the Department of Rural Development and Land Reform is being concluded.
Reports on the support to the Limpopo Departments of Public Works (performance management) and Economic Development, Environment and Tourism (career management) is being concluded.
An evaluation of high performing rural schools in Limpopo was concluded. 9

10. BRANCH: M&E (2)
As a follow-up on the support initiatives, the PSC is drafting a document on lessons learnt. It will also cover support initiatives by other departments, such as Operation Pakhisa.
A discussion document on a review of occupational classification in the Public Service was completed and a submission was made to the Presidential Remuneration Review Commission.
During the 2014/15 financial year, the PSC conducted Citizen Forums at Lekwa and Thembisile Hani municipalities. The implementation of the commitments by departments is being monitored.
Engagements were held with the North West Provincial Government to conduct a Citizen Forum at Marikana & Matsatseng. 10

11. BRANCH: M&E (3)
The PSC concluded reports on service delivery inspections-
in Gauteng Province to assess the availability of medicines and medical equipment; and
the availability of Learner and Teacher Support Material (LTSM) in schools. In essence, it was found that there are systemic challenges in the provisioning of LTSM mainly related to unforeseen learner intakes in the beginning of the academic year.
Service delivery inspections were conducted at hospitals in Mpumalanga, Free State and Gauteng.
Preparations were made to undertake service delivery inspections of border gates in Mpumalanga and Free State.
The PSC is preparing a proposal on its role in M&E of the organisation and administration of the Public Service. 11

12. BRANCH: M&E (4)
A rapid assessment of the Central Application Clearing House, set up to exchange information between universities on admissions of first year students, commenced. In this regard, engagements were held with the Department of Higher Education, Council on Higher Education and Higher Education South Africa.
A draft Framework for the promotion of the Constitutional Values and Principles in section 195 was developed and is being refined. Consultations will be held with departments that will be assessed through the Framework.
The PSC also provided support on the work of the Presidential Remuneration Review Commission; e.g. comment on the statement of issues and preparation of briefing notes for the Remuneration Workstream. This is an unplanned activity that has resource implications for the PSC. 12

13. BRANCH: INTEGRITY AND ANTI-CORRUPTION

14. BRANCH: IAC
Status of complaints lodged in terms of the Complaints Rules and the NACH, as at 31 July 2015:
The PSC had 340 complaints, of which 265 were carried over from 2014/15 and 75 were lodged during the 2015/16 financial year.
97 (29%) complaints were finalised/closed.
In order to create a common understanding on what constitutes financial misconduct and to raise awareness on the importance of reporting on financial misconduct the PSC will host a Roundtable Discussion with national and provincial departments. 14

15. BRANCH: IAC (2)
Investigations on the awarding of higher salaries in the Departments of Transport and Labour commenced.
Management of the FDF:
Compliance with the submission of financial disclosure forms as at the due date of 31 May 2015:
National departments: 72%
Provincial departments: 95%
Overall: 82%
76% of the disclosure forms were submitted via eDisclosure.
A report on the nature and extent of the protection of whistle-blowers and investigators is being finalised.
In order to promote professional ethics in the Public Service, workshops were held within various departments at national and provincial level.
12 Professional Ethics workshops held with 5 departments targeting employees on levels 9 – 12 in Limpopo
Workshops on professional ethics held with all SMS members in Limpopo
Hosted a workshop in partnership with the Office of the Premier and the Government Communication and Information Systems on professional ethics with 130 communicators from 12 departments in Limpopo
Presentation on the anti-corruption strategy for HoDs and SMS members in the Limpopo Provincial Treasury
Hosted engagements in partnership with the Office of the Premier and Provincial Treasury with all investigators in the 12 provincial departments in Limpopo regarding the NACH cases 15

16. BRANCH: IAC (3) Management of the NACH as at 31 July 2015: National/
Province
Cases referred
Feedback Received
% Feedback Received
Cases Closed
% Cases Closed
National
6 378
4 674
73%
3 857
60%
Eastern Cape
705
616
87%
440
62%
Free State
324
229
71%
210
65%
Gauteng
1 772
1 451
82%
1 263
KwaZulu-Natal
687
344
50%
121
18%
Limpopo
484
459
95%
309
64%
Mpumalanga
1 090
942
86%
880
81%
North West
421
253
167
40%
Northern Cape
109 62
57% 46
42%
Western Cape
494
429
281
Public Entities
3 450
2 904
84%
2 900
TOTAL
15 914
12 363
78%
10 474
66% 16

17. ORGANISATIONAL MATTERS

18. ORGANISATIONAL MATTERS (1) Governance Rules and Delegations
To ensure the effective functioning of the PSC, the reviewed Governance Rules were gazette and took effect in April 2015.
Delegations to Provincially Based Commissioners were gazetted in June 2015.
The delegated powers include amongst others the following:
Management and investigations of grievances and complaints timeously in the provinces through Panels
Conducting announced and unannounced inspections
Management of the financial disclosure framework
Interface with all relevant stakeholders of the PSC in the provinces.
At National level, Cluster Commissioners were identified as the focal point for communication with an oversight over national departments.
The introduction of this new approach of Panels and Clusters will ensure that our work is fast tracked and implemented in a coordinated manner.
In order to further improve its operations, the PSC is reviewing its Rules on lodging complaints, Grievance Rules and Rules on summonsing of witnesses, as well as the various protocols. 18

19. ORGANISATIONAL MATTERS (2a)
Financial Management
Overview of financial performance as at 31 July 2015:
Programme
Budget
Spending
Spending Norm
(33. 33%)
Admin
30 743
30.673%
LMP
38 599
12 788
33.13%
M&E
37 006
11 619
31.40%
IAC
46 269
15 358
33.19%
TOTAL
70 508
31.75%
The PSC has received an unqualified audit with no matters of emphasis for the 2014/15 financial year.
Surplus funds for 2014/15 amounted to R which translates to 0.06% of the total budget will be surrendered to National Treasury.
Due to the current financial climate, the PSC did not put forward a proposal over the Medium Term Expenditure Framework (MTEF) process. 19

20. ORGANISATIONAL MATTERS (2b)
Financial Management: Shortfall in the baseline allocations
MTEF
R’000
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
2013
2014
2015
2016 28

21. ORGANISATIONAL MATTERS (2c)
Financial Management: Shortfall in the baseline allocations
The baseline allocations for year 2014/15 was increased to R226,0 million, without correcting the misallocation for year 2015/16, which was R211,0 million.
National Treasury was again informed about the uncorrected budget misallocation.
2014 MTEF process
The baseline allocations for 2015/16 increased to R222,1 million as well as the outer years.
HOWEVER, the increase was earmarked for office accommodation.
This increase did not address the error that occurred during the 2013 MTEF budget process.
To make it worse, the final appropriation for 2014/15 was R226,0 and the new allocated budget allocation for 2015/16 was R222,1 with R23,6 million earmarked for accommodation.
2015 MTEF process 21

22. ORGANISATIONAL MATTERS (2d)
Financial Management: Shortfall in the baseline allocations
The indicative allocation for 2016/17 increased to R234,2 million.
Breakdown of 2016 budget:
The Goods and Services budget must cover:
The PSC will only have approximately R2 million for projects
Compensation
R195 million
Office accommodation
R21,4 million
Goods and Services
R17.8 million
2015 MTEF process
(cont)
Item
R’000
Training
1, 951
AG fees
3, 494
Internal Audit
1, 215
Employee Wellness Programme
330
National Anti-Corruption Hotline
3, 174
Other SITA costs [mainframe & web hosting & transversal services eg. BAS, PERSAL, LOGIS]
7, 423
Total mandatory costs
15 636 22

23. ORGANISATIONAL MATTERS (2e)
Financial Management: Shortfall in the baseline allocations
In 2017/18 and 2018/19 the same challenges with regard to the available budget for Goods and Services as discussed above will apply.
The available budget will be as follows:
The PSC has re-aligned its budget on non-core items but the Goods and Services budget remains insufficient.
The expenditure projections reflects a projected shortfall over the MTEF period, amounting to R21 million for 2016/17, R21 million for 2017/18 and R22 million for 2018/19
Item
2016/17 R’000
2017/18 R’000
2018/19 R’000
G&S budget
17, 809
22, 471
23, 773
Available budget for operations
2, 173
3, 865
4, 087
2015 MTEF process
(cont) 23

24. ORGANISATIONAL MATTERS (2f)
Financial Management
National Treasury was informed about the anticipated shortfall (R15 million) in the Goods & Services budget and the PSC is awaiting feedback.
Expenditure is closely monitored to ensure that the overall budget is not exceeded.
A Financial Circular on cost cutting measures was issued in June 2015, e.g.:
Reduced budget for travel, accommodation, catering and communications
Institutionalised detailed project costing to identify savings
Reviewed selected business processes to improve efficiency and effectiveness
Auditing existing capacity to ensure the optimal utilisation of staff in relation to increased demand for services by stakeholders
Reduced number of reports printed, reports are now placed on the PSC website
Departments are requested to provide venues for the PSC’s engagements 24

25. ORGANISATIONAL MATTERS (3)
Human Resources
Vacancy rate as at 4 August 2015 was 7.9%.
Representivity profile of the Office:
Females at management level
SMS
55%
MMS 11 to 12
43.4%
Race
Africans
78%
Coloureds 9%
Indians 3%
Whites
10%
People with disabilities
1.46%
The filling certain posts is being delayed to generate savings for operations.
The PSC has prioritised the strengthening of its capacity through initiatives such as customised training on research and a public lecture series and workshops with UNISA, as well as training on legal drafting, investigation and project management. 25

26. ORGANISATIONAL MATTERS (4)
Office Accommodation
The PSC is experiencing challenges with regard to procuring office accommodation for its National Office as well as selected provincial offices.
Most of the leases have expired and are currently on a month to month basis.
Its National Office relocated in July 2015 to temporary accommodation in Pretoria Central, while it is awaiting the advertising of the bid for permanent accommodation.
The temporary accommodation is not conducive and has had an impact on the operations as well as the morale of staff.
Challenges have been raised with the Department of Public Works on a regular basis.
A meeting was held with the Minister for Public Works to support the PSC in securing appropriate accommodation for its offices. 26

27. ENGAGEMENTS WITH STAKEHOLDERS (1)
Portfolio Committee on Agriculture, Fisheries and Forestry on the assessment of the Department’s compliance and adherence to applicable procedures.
Portfolio Committee on PS&PME on the-
PSC Strategic Plan and APP
Effectiveness, efficiency and relationship with stakeholders
Financial Misconduct in the Public Service
The PSC participated in the Portfolio Committee on PS&PME’s oversight visits to Gauteng and North West, was observers during the presentation on the PAMA, and attended the hearings on compliance with the 30 day payment of service providers
Portfolio Committee on Health on the availability of medicine and medical equipment.
Presentation to the Ministerial Committee on the Review of the Social Development White Paper. 27

28. ENGAGEMENTS WITH STAKEHOLDERS (2)
SCOA on –
The 2015 Appropriation Bill
Government’s compliance with the 30 day payment of service providers
In addition, further engagements were held on the 30 day payment of service providers:
Minister of Transport
Minister of Trade and Industry
National Treasury workshops with Chief Financial Officers
Eastern Cape Legislature on –
the work of the Forum of Institutions Supporting Democracy
implementation of inspection recommendations on police stations
Eastern Cape Premier on the PSC’s reports.
North West and Limpopo provinces: the role and work of the PSC. 28

29. CONCLUDING REMARKS
In order to better alight its planning to the National Treasury Framework, the PSC held its Strategic Planning Session in July 2015.
The objectives of the Strategic Planning Session was to, amongst others, reflect on the PSC’s mandate and develop strategies to take forward the proposals made in the Developmental State discussion document that was produced by the PSC.
During the Strategic Planning Session, the PSC reviewed its strategic outcome oriented goals and goal statements to ensure that they are more relevant and measurable. 29

30. Strengthened institutional capacity
CONCLUDING REMARKS (2)
The revised strategic outcome oriented goals are as follows:
Make a positive impact on the attainment of an efficient, economic, effective and development-oriented public service
Make a positive impact on the attainment of impartial and equitable service delivery that responds to the needs of the people and treat them with dignity
Strengthened institutional capacity
Make a positive impact on the attainment of sound labour relations and public administration practices that cultivate effective and efficient human resource management 30

31. CONCLUDING REMARKS (3)
The limited financial resources has had an impact on how the PSC implements its mandate.
The increased demand for the PSC services by its stakeholders as well as opportunities for engagements has had an impact on its work.
The PSC has therefore had to consider its financial resources before it can accommodate ad hoc requests for support/ advice by its stakeholders.
There has been a marked improvement in the responsiveness of the executive to the implementation of the PSC’s recommendations.
Although the PSC has continuous engagements with the different Portfolio Committees in the National Assembly, it has recognised that there is an uneven relationship with the Provincial Legislatures.
Concerted efforts have been made to strengthen relations with the Provincial Legislatures.
The PSC is also busy developing a format for reporting to Parliament and Provincial Legislatures as provided for in Section 196 (4)(e) of the Constitution. 31

32. Ndo livhuwa PSC Website: www.psc.gov.za
National Anti-Corruption Hotline for the Public Service:
Ndo livhuwa