1. PUBLIC SERVICE COMMISSION
ANNUAL REPORT FOR THE
2015/16 FINANCIAL YEAR
OCTOBER 2016

2. PRESENTATION OUTLINE Introduction Summary of performance
Programme Performance
Programme 1: Administration
Programme 2: Leadership and Management Practices (LMP)
Programme 3: Monitoring and Evaluation (M&E)
Programme 4: Integrity and Anti-Corruption (IAC)
Conclusion 2

3. INTRODUCTION
The Public Service Commission (PSC) had a budget of approximately R229.3 million. It is supported by a National Department, the Office of the PSC (OPSC) which comprised of 268 employees.
During the period under review we witnessed the appointment of Commissioner George Mashamba in Limpopo Province, Commissioner Mpilo Sithole in KwaZulu-Natal Province as well as the re-appointment of Commissioner Moira Marais-Martin in the Northern Cape Province and Commissioner Ben Mthembu at National level.
In its endeavour to improve efficiency, with effect from 1 April 2015, the PSC implemented the new Governance Rules.
Delegations to the Provincially Based Commissioners and assignment of duties to Commissioners and employees of the OPSC were also approved with the hope of improving the effectiveness of the PSC in realising its mandate. 3

4. INTRODUCTION (2)
Since the implementation of the new Governance Rules, the PSC has witnessed a significant improvement in the manner in which the work of the PSC through its work streams had been carried out.
The decentralisation of the majority of the work of the PSC to Provincially Based Commissioners and nationally based Commissioners to specific cluster departments has also contributed to increased efficiency.
In an effort to increase its visibility, during the reporting period under review, the PSC conducted service delivery inspections at selected schools on the availability of Learner Teacher Support Material, as well as at selected hospitals and border posts.
The PSC and the University of South Africa signed a Memorandum of Understanding (MoU), which provides a framework for collaboration on selected areas of research, monitoring and evaluation, and development of public administration. 4

5. OVERALL PERFORMANCE FOR 2015/16
The PSC achieved 88.7% of its outputs in the 2015/16 financial year as compared to 88% in the 2014/15 financial year
Although the performance has only improved slightly, it is encouraging that 16.1% of the outputs were achieved earlier than planned. 5

6. ACHIEVEMENTS FOR 2015/16
Although the number of grievances lodged with the PSC increased, the finalisation rate improved due to the review of internal processes. 89% of grievances were finalised, as compared to 75% in the previous financial year
Similarly, the rate of finalisation of complaints increased from 59% in the previous financial year, to 73% in 2015/16
The PSC developed a framework for the promotion of the Constitutional Values and Principles (CVPs) governing public administration. This framework will in future provide Parliament and provincial legislatures with trends on the performance of the Public Service against these CVPs
In its effort to contribute towards building of an integrity-driven and ethical Public Service, the PSC continued to manage senior managers’ conflicts of interest through the Financial Disclosure Framework (FDF). For the second year in a row, the PSC managed to scrutinize 100% of all financial disclosure forms received 6

7. ACHIEVEMENTS FOR 2015/16 (2)
The work of the PSC requires strong analytical, research and project management capacities. Therefore, the PSC prioritised strengthening of its own capacity through various initiatives such as developing and rolling out of a customised training course on research in partnership with the University of South Africa (UNISA) as well as offering training on legislative drafting, investigations and project management
The PSC continued to contribute effectively in public administration through its research. To this end, various presentations were to support Parliament in its oversight function
The PSC maintained its unqualified audit record
The PSC’s visibility programme has raised the profile of its work. An example is the successful hosting of a Joint Public Lecture between the PSC and UNISA on Building a Capable, Career-Oriented and Professional Public Service and the media coverage around the event 7

8. CHALLENGES FOR 2015/16
Due to its limited financial resources, the PSC decided to prioritise selected mandatory projects such as the investigation of grievances and complaints and to prioritise other outputs with greater impact for implementation. Its financial constraints impacts negatively on the PSC’s ability to respond effectively to its stakeholders
Some outputs were delayed or had to be re-prioritized due to capacity constraints or the need for additional research. The re-prioritisation was mainly to facilitate ad hoc requests from key stakeholders, such as Parliament and the Presidential Remuneration Review Commission
The relocation of the National Office of the PSC to temporary accommodation also had a negative impact on the operations of the PSC. The accommodation is not conducive and has an impact on employee morale
The research work conducted by the PSC is largely dependent on inputs from departments. The incomplete or late submission of required information by departments had an impact on the timely finalisation of some outputs. To mitigate this, nationally based Commissioners were assigned to specific cluster departments 8

9. PROGRAMME 1: ADMINISTRATION

10. PROGRAMME 1: ADMINISTRATION (1)
FINANCIAL MANAGEMENT
The PSC spent 99.81% of its budget allocation and achieved 88.7% of its predetermined objectives
Through its stringent financial management process, the PSC again received an unqualified audit for the 2015/16 financial year
PROGRAMME
Final Appropriation
Actual spent
(Over)/Under Expenditure
R’000
Programme 1: Administration
220
Programme 2: LMP
38 308
38 164
144
Programme 3: M&E
36 184
36 155 29
Programme 4: IAC
47 093
47 053 40
Total
229752
432 10

11. PROGRAMME 1: ADMINISTRATION (2)
FINANCIAL MANAGEMENT
Share of budget per economic classification
Share of budget per budget programme
Functions are centralised in Programme 1 (includes rentals for national and provinces, SITA costs, communication costs, training and bursaries ) 11

12. PROGRAMME 1: ADMINISTRATION (3)
FINANCIAL MANAGEMENT
The PSC has been notified that the NT has decided to cut its budget for the 2016/17 financial year with R5 million following an analysis of its spending trends
MTEF
R’000
2013/14
2014/15
2015/16
2016/17
2017/18
2018/19
2013
2014
2015
2016
229 233 12

13. PROGRAMME 1: ADMINISTRATION (4)
FINANCIAL MANAGEMENT
Overview of the budget for 2016/17 financial performance as at 31 August 2016:
Item
Allocated Budget
(R’000)
Expenditure to date
Percentage Spending (%)
Percentage Variance (%)
Compensation of Employees
74 386
39.59%
2.08%
Goods & Services
46 121
21 579
46.79%
(7.19)%
Transfers and subsidies
206
332
161.17%
(119.50)%
Payments for capital assets 37
269
727.03%
(685.36)%
Payment for financial assets
40 441 -
Total
96 566
41.23%
0.44% 13

14. PROGRAMME 1: ADMINISTRATION (5)
FINANCIAL MANAGEMENT
Due to financial constraints and the reduction on its budget, the PSC implemented a limited number of projects
Furthermore, the PSC took a decision to delay the filling of certain posts as well as to abolish certain posts in order to generate savings for its operations
The PSC also introduced further cost containment measures in areas such as travelling, which has for example generated savings of an estimated amount of R3 million as compared to the 2014/15 financial year
Although the PSC did attempt to cut costs, other unexpected costs arose. A case in point is that the National Office of the PSC relocated to temporary accommodation whilst the Department of Public Works was in the process of procuring permanent accommodation. The temporary office building had a huge and unexpected rental increase
This is also worsened by the fact that selected provincial offices also relocated, which also resulted in increased costs for office accommodation 14

15. PROGRAMME 1: ADMINISTRATION (6) VACANCY RATE AND EMPLOYMENT EQUITY
As at 31 March 2016, 31 posts in the Office were vacant (10% vacancy rate)
Some posts had to be re-advertised as suitable candidates were not identified
Employment Equity profile of the Office:
Race
Africans
85%
Coloureds
5.3%
Indians 3%
Whites
7.5%
Females at management level
SMS
51.2%
MMS 11 to 12
43%
People with disabilities
1.87% 15

16. PROGRAMME 1: ADMINISTRATION (7)
COMMUNICATION AND IT
A successful Joint Public Lecture between the PSC and UNISA on Building a Capable, Career-Oriented and Professional Public Service for a Developmental State as stated in the National Development Plan Vision 2030 was held
With regards to internal communications, a communiqué by the Director-General, Mafhungo which is aimed at keeping officials abreast of developments in the organisation was issued on a monthly basis. Likewise, bi-annual newsletter, Izwi lase OPSC was also issued every second month
The Office prescribed to the Corporate Governance of Information and Communications Technology (ICT) Policy Framework by appointing a Governance Champion and implemented a IT Governance Charter
To enhance productivity and the effective utilisation of network resources, a network monitoring tool was implemented 
In line with cost cutting measures, the Internet Protocol Telephony was fully implemented at the National Office and in 8 provincial offices 16

17. PROGRAMME 2:
LMP

18. LABOUR RELATIONS IMPROVEMENT
PROGRAMME 2: LMP
LABOUR RELATIONS IMPROVEMENT
Grievances Management
As at 31 March 2016, the PSC received a total of 682 cases of which 484 grievances were properly lodged and an additional 198 received grievances were not properly referred and the PSC had no jurisdiction in some
A total of 605 (89%) grievances were finalised 18

19. LABOUR RELATIONS IMPROVEMENT
PROGRAMME 2: LMP (2)
LABOUR RELATIONS IMPROVEMENT
On its own accord, the PSC conducted two studies with a specific focus on critical functions that are located within the DoJCD. The studies were designed to assess the effectiveness and efficiency of the Office of the State Attorney and the Office of the Chief State Law Advisor. The two reports were submitted to the Minister for Justice and Correctional Services and the DG for the DoJCD
As part of its oversight and monitoring function, the PSC produced a Factsheet on Grievance Resolution in the Public Service for the 2014/15 financial year
To promote sound labour relations in the Public Service and information sharing with labour relations practitioners and employees in general, the PSC published a Grievance Management Communiqué 19

20. LEADERSHIP AND HUMAN RESOURCE REVIEWS
PROGRAMME 2: LMP (3)
LEADERSHIP AND HUMAN RESOURCE REVIEWS
The PSC continued to monitor compliance with the signing and filing of performance agreements by Heads of Departments (HoDs) and conducted an inquiry into the implementation of the HoD evaluation deviation that was issued by the MPSA
Research was also conducted in key areas related to human resource management, such as-
the Assessment of the Handling of Disciplinary Cases in the Public Service
Factsheet on Irregular Appointments in the Public Service
Assessment of the management of service terminations and pension pay-outs in the Public Service
An audit was conducted on recruitment and selection processes in the Gauteng Department of Finance and a skills and competency audit of human resource and financial management senior managers was conducted in the Western Cape
The PSC also provided extensive inputs to the Presidential Remuneration Review Commission following their call for submissions 20

21. PROGRAMME 3: M&E

22. GOVERNANCE MONITORING
PROGRAMME: M&E
GOVERNANCE MONITORING
The main focus was to prepare material for the promotion of the nine values and principles in Section 195 of the Constitution and a framework for the evaluation of departments against the values. The framework defines each of the values, spells out the scope and content of each of the values and proposes a number of indicators that will be used for the evaluation of departments
The concept design of a data warehouse that will store the data that will be used in evaluations was completed. Such data will provide the evidence for any evaluative comment of the PSC about the Public Service
Since annual reports are a valuable source of information on the performance of departments, the PSC has developed guidelines on analysing strategic plans and annual reports. As the PSC cannot only evaluate departments but must also propose measures to improve performance, it has strengthened its methodology for diagnosing the underlying causes of problems and developing implementable solutions 22

23. GOVERNANCE MONITORING
PROGRAMME: M&E (2)
GOVERNANCE MONITORING
The PSC also engaged with other Portfolio Committees and Committees in Parliament; e.g.
Portfolio Committee on Agriculture for their Strategic Planning Session
Portfolio Committee on Health on the PSC’s report on the distribution of medicines
Standing Committee on Appropriations on the Appropriations Bill
Human Settlements about the capacity of the Department to spend its budget
Standing Committee on Public Accounts on the annual report of the Department of Correctional Services
Standing Committee on Appropriations on The Medium Term Budget Policy Statement
Standing Committee on Appropriations on the national departments performance vs. expenditure
The PSC also hosted a Roundtable Discussion on the 2014 State of the Public Service Report 23

24. SERVICE DELIVERY AND COMPLIANCE EVALUATIONS
PROGRAMME: M&E (3)
SERVICE DELIVERY AND COMPLIANCE EVALUATIONS
The PSC conducted 16 inspections of service delivery sites, including inspections of-
hospitals to assess the availability of medicines,
border posts to assess the state and nature of compliance with immigration prescripts
Schools to assess the delivery of Learner and Teacher Support Material.
The inspections provided the PSC with valuable information on practical service delivery challenges at the coal face
In particular, following the inspection at the Pelonomi Regional Hospital in the Free State to determine the challenges experienced by the hospital in respect of patient treatment, safety and security services and availability of medicines and medical equipment, the Department of Health set aside an additional R170 million for the Hospital’s goods and services in 2015/16 24

25. SERVICE DELIVERY AND COMPLIANCE EVALUATIONS
PROGRAMME: M&E (4)
SERVICE DELIVERY AND COMPLIANCE EVALUATIONS
Following the application of the Citizens Forum Toolkit in Mpumalanga Province in the –
Msukaligwa Local Municipality a site for the building of a clinic was identified
Thembisile Hani Local Municipality progress was made towards the building of a new school (Vezikgono Secondary School) 25

26. PROGRAMME 4: IAC

27. PUBLIC ADMINISTRATION INVESTIATIONS
PROGRAMME 4: IAC
PUBLIC ADMINISTRATION INVESTIATIONS
A Factsheet on completed disciplinary proceedings for the 2014/15 financial year was compiled
The Complaints Rules and Guidelines were reviewed to improve efficiency
The PSC also conducted investigations and assessments of the awarding of higher salaries on appointment and counter offers in the national Departments of Transport and Labour
Complaints investigated
As at 31 March 2016, the PSC had 510 complaints, of which 265 were carried over from 2014/15 and 245 were lodged during the 2015/16 financial year. A total of 371 complaints were finalised and 139 are pending 27

28. PROGRAMME 4: IAC (2) PROFESSIONAL ETHICS
The PSC developed a three year strategy in promoting professional ethics in the public service. Following on this, the PSC hosted various workshops with a particular focus on selected departments in the Western Cape and North West provinces as well as with the Departments of International Relations and Cooperation and Labour. This included workshops relating to the management of conflicts of interests, the Code of Conduct and financial misconduct
During the 2015/16 financial year, the PSC received calls on the National Anti-Corruption Hotline. Out of calls, a total of case reports were generated 28

29. PROGRAMME 4: IAC (3) PROFESSIONAL ETHICS
Compliance with the Financial Disclosure Framework in the Public Service
Compliance date: 31 May 2016
31 March 2016
National
4 264 (74%)
4 834 (83%)
Provincial
3 949 (95%)
4 152 (99.7%)
Overall
8 213 (82%)
8 986 (90%)
The PSC scrutinised a 100% (8 986) of the financial disclosure forms received to assess compliance and whether the involvement of officials in any activities of the companies could lead to potential and/or actual conflicts of interest.
The financial interests of SMS members who did not submit their financial disclosure forms were also scrutinised to assess their involvement in any activities of the companies that could lead to potential and/or actual conflicts of interest.
Where applicable, the PSC conducted consultations with SMS members who were found to be involved in activities that could be construed as posing conflicts of interest. 29

30. ACHIEVEMENTS FOR 2016/17
The PSC’s visibility programme ensured that during the reporting period the media extensively covered the following reports of the PSC:
Assessment of the management of service terminations and pension pay-outs in the Public Service
Assessments of the effectiveness and efficiency of the Office of the Chief State Law Adviser
Assessment of the effectiveness and efficiency of the Office of the State Attorney
Availability of Learner and Teacher Support Material
The PSC is required in terms of Section 196 (4)(e), read with Section 196 (6), of the Constitution to give a detailed report to the National Assembly on its activities, including any finding it has made and any direction and advice it has given, and to provide an evaluation of the extent to which the values and principles in Section 195 are complied with. For the first time, the PSC will submit such a report in 2016 and the report will provide an overview of the purpose and outcome of the activities of the PSC and the contribution of the PSC to public administration 30

31. ACHIEVEMENTS FOR 2016/17 (2)
The PSC has commenced with inspections in Health Facilities in the Eastern Cape, Free State, KwaZulu-Natal and North West provincies
It has also commenced with inspections at Border Gates and Police Stations
Inspections were concluded to conduct an evaluation of the level of adherence to the Constitutional values and principles in district hospitals in the Western Cape
Reports on an investigation and evaluation of the awarding of higher salaries on appointment and counter offers in the national Departments of Transport and Labour were finalized
The submission rate of financial disclosure forms by the due date of 31 May 2016 was as follows:
National departments ( %)
Provincial departments ( %)
Overall ( %)
Status of NACH cases on the database as on 30 September 2016:
Feedback received: (92%)
Closed: (91%)
Outstanding: 1597 (9%) 31

32. CONCLUSION
The PSC will continue to execute its mandate through conducting its oversight work in the Public Service
It is however severely constrained by its limited resources
The PSC is a knowledge based organisation and does not outsource its work. The bulk of the PSC’s budget is allocated to compensation of employees. This has created an imbalance in the PSC’s budget in the sense that an average of 81% is allocated to compensation of employees and 19% to goods and services
The process of correcting the imbalances more permanently has commenced, and to this end, 11 posts were abolished as at 31 March 2016
The purpose of abolishing the posts was to have a sustainable solution to address the shortfall in the goods and services budget and avoid being dependent on savings from compensation of employees 32

33. CONCLUSION (2)
The baseline allocations for 2017/18 and 2018/19 has also been reduced with R5 mil.
National Treasury was informed that the reduction will have a further adverse impact on the PSC’s ability to execute its mandate effectively
In order to ensure improvement in the performance of the Public Service, continuous engagements will need to be held with departments and partnerships will need to be further strengthened
In response to the demands of its stakeholders and its financial constraints, the PSC will have to identify vacant posts to be abolished and re-prioritise its work 33

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