1. Presentation to the Portfolio Committee on Public Service and Administration on IFMS and the PERSAL clean-up project 8 February 2012 1

2. Contents Aim and Objectives of IFMS Why IFMS? Cabinet Memo 16 of 2005 and 22 of 2007 IFMS Governance Structure Roles and Responsibilities of DPSA, NT and SITA Product Scope Progress To-Date –Phase II Non Product Deliverables –Product Development –Product Implementation Industry Involvement with SITA Estimated Cost to IFMS Reasons for Slippages Strategy to Remedy Situation IFMS: Next steps Relationship between PERSAL Clean-up and IFMS PERSAL clean-up 2

3. Aim and objectives of the IFMS  Aim –To provide an Integrated Financial Management System (IFMS) to National and Provincial Government that integrates human resource, payroll, financial and supply chain management and business intelligence  Objectives –Replace aging technologies –Enable implementation of Public Finance Management Act and Public Service Act –Re-focus SITA towards its core mandate –Develop Information and Communication Technology (ICT) skills within the country 3

4. Why IFMS? Need to replace legacy systems –Lack of inherent interoperability and business intelligence services –Increasing difficult to maintain and upgrade –Challenges to support changing policy environment Need to provide centralized solutions to standardize on technology and leverage on economies of scale Automation of business processes to ensure greater efficiency Improve quality of data –Improved access to data –Elimination of manual data capturing processes Potential cost savings – for example through elimination of manual leave capturing 4

5. Cabinet Memo: 16 of 2005 & 22 of 2007  Background –2005: Integration and renewal of all financial, supply and human resource management information technology systems that are in use in national and provincial departments –2007: Fast-track the development of Human Resource Management, Procurement Management and Asset Management (AM) modules  Phase I –Was approved by the Budget Council in October 2002 and was completed end February 2004. Phase I deliverables were: Master Systems Plan, User Requirements Statements and Prospectus Phase II – planned to take approximately 24 months Establishing a prime systems integrator (PSI) capability within SITA Acquiring the infrastructure to support the lead applications The procurement of commercial-off-the-shelf (COTS) software for the Human Resource Management (HRM) and Procurement Management (PMM) modules Establishing support infrastructure and testing facilities Partner with Industry Phase III – planned to take approximately 60 months Develop a new core Supply Chain Management (SCM) module. Develop a new core Finance module. Procurement of Catalogue Management module. Develop a new Business Intelligence (BI) module. Develop a new Payroll module. Integrate all modules (HRM, SCM, FIN, Payroll and BI) 5

6. IFMS Governance Structure as approved by Cabinet in 2005 SITA Established IFMS PSI FINHRSCMGITOC STATUTORY BODIES & CONSOLIDATED USER REPRESENTATION MINISTERIAL OVERSIGHT NTSITADPSA INDUSTRY/ SITA INTEGRATED SOLUTION USER NEEDS CONSOLIDATED URS IT PRODUCTS & SERVICES IMPLEMENTATION SUPPORT SERVICES PHASE 2 ADVISORY PANEL Ad-hoc representatives from the DOD and SAPS to address specific matters Transverse Systems Regulator: - Service Levels - Rates - Benchmarking - Disputes SECURITY CLUSTER PROVINCIAL CLUSTER IFMS STEERCOM IFMS STRATEGIC COORDINATION IFMS PHASE II SLA MANAGEMENT NAT. DEPT. PROVINCE USER ORGANISATIONS User Requirement Statement (URS) Teams 6

7. Roles and Responsibilities of DPSA, NT and SITA DPSA –Determine HR policies, processes and systems for the Public Service and ensure that IFMS supports these. –Manage and maintain HR corporate reference data such as qualification and competency catalogues. –Oversee the roll-out of the IFMS HR module to the Public Service and provide support to departments during IFMS HR implementations. National Treasury –Financial sponsor –Determine financial and supply chain management policies, processes and systems for the Public Service and ensure that IFMS supports these. –Manage and maintain financial and supply chain management corporate reference data such as the standard chart of accounts. – Oversee the roll-out of the IFMS financial, payroll and SCM modules to the Public Service and provide support to departments during the implementation of these modules.  SITA –Develop an appropriate overall integrated solution architecture and systems specification. –Develop or acquire and integrate the components and services into an overall solution. –Provide technical support over the solution lifecycle. Collective responsibility –Future oversight over the IFMS programme in respect of pricing policies, levels and quality of services rendered to government clients, etc –Overall management of the various modules to ensure integrity of IFMS 7

8. Product Scope Health and Safety Management Education Training Development Labour Relations HR Planning Organizational Management Recruitment Management Employee Movement Performance Management HR Reporting Career Management Remuneration Management Termination of Service HR Administration Catalogue Management Procurement Management Inventory Management Asset Management MTEF Budget Preparation Departmental Financial Management Treasury Financial Management Payroll Reporting Analysis Dashboards Data Mining Supply Chain Management Human Resource Management Financial Management and Payroll Business Intelligence The IFMS solution will provide functionality to National and Provincial Departments Integrated Master Data Management 8

9. Progress to-date: Phase II Non Product Deliverables  PSI Capacitating  SITA underwent internal self assessments, which was supplemented by an assessment that was led by the Johannesburg Centre of Software Engineering  Assessment of SITA by an independent panel of experts is scheduled for 2012  Cost Recovery and Pricing Model  A high level cost and pricing model has been completed. More detailed work is in progress  Skills Development and Change Management  IFMS Training Framework for users has been completed  IFMS Change Management Strategy Framework has been completed  Implementation Capability  Implementation methodology toolkit completed  Partner database established containing 155 partners 9

10. Progress to date: Product Development DomainStatusDate Completed Envisaged Delivery Dates Supply Chain Management Core Asset ManagementCompleted2010 Procurement ManagementCompleted2011 Catalogue ManagementCompleted2011 Supply Chain Management (Extended) - Inventory In progress2012 Human Resource ManagementCompleted2010 PayrollIn progress Tender under adjudication 2013 Financial Management (Core)In progress Tender under adjudication 2013 Business IntelligenceIn progress2012 10

11. Progress to date: Product Lead Site Implementations  The following lead site implementations have been completed:  National Treasury (AM/PMM)  Limpopo: Treasury, Roads and Transport, Local Government and Housing and Agriculture (AM)  Public Service and Administration (HRM)  The following lead site implementations are underway:  Limpopo Department of Health (AM)  Free State Department of Education (HRM)  Department of Defense (AM/PMM) 11

12. Industry Involvement with SITA  Vendors:  Human Resource Management: Simunye Consortium  Integrated Development Environment: IBM  Technical Support Services: Bytes  Procurement Management: ICT Works Consortium  Catalogue Management : Pilog  Business Intelligence: Praxis  Implementation Partners (155 in total):  Partners per province – note that partners can be in more than one province: Gauteng (101), North West (32), Free State (32), Mpumalanga (37), Limpopo (55), Kwa-Zulu Natal (64), Western Cape (56), Eastern Cape (47), and Northern Cape (31)  To date, 44 implementation partners have been accredited  Partners will support national roll-out of IFMS 12

13. Estimated Cost of IFMS  Expenditure to date:  R 559million  Funding for outstanding product development, hosting infrastructure and implementation cost will be dealt with through the MTEF processes 13

14. Reasons for Slippages  IFMS was not fully implemented and rolled out to government as envisaged, primarily due to:  Complexity of the IFMS programme  Longer than planned procurement and contract negotiation processes  The lack of full capacity in SITA IFMS team  The additional responsibility of moving Phase III deliverables (acquisition and implementation of COTS products) to Phase II placed an additional burden on the IFMS project  Readiness and change management issues of lead sites  Misalignment of product procurement and product development  Lack of functional skills in some departments 14

15. Strategy to remedy the situation  The IFMS project team was too optimistic about the timelines and have learnt through experience:  A revised memorandum will be submitted to Cabinet that includes more realistic timelines  SITA’s capacity problems have been addressed with the SITA turnaround and the capability will be augmented with industry partners upon conclusion of contracts  Contract negotiations will be comprehensive and streamlined  The IFMS architecture is being institutionalised, which will result in less complexities being experienced in developing the outstanding modules  Governance and oversight arrangements to be improved 15

16. IFMS: Next steps  Finalise development of outstanding modules including adjudication and contracting  SITA, together with DPSA and NT, will compile a strategy for the rollout of IFMS, which will be consulted with relevant stakeholders in 2012/13  National roll-out of selected modules to commence in 2012/13 16

17. Relationship between PERSAL clean-up and IFMS Important to ensure that accurate and “clean” data is migrated from PERSAL to IFMS HR and Payroll systems at implementation PERSAL will still be utilized as a payroll system and as a source of reporting on HR in the Public Service for a number of years until IFMS is fully implemented 17

18. PERSAL Clean-up The DSPA conducted PERSAL clean-up workshops in a number of national departments and provincial administrations that are responsible for the implementation on the Public Service Act/Regulations: –8 Provincial Administrations (Gauteng outstanding) –10 National Departments The workshops were aimed at raising awareness amongst managers and officials about the value of improvement of PERSAL information and utilization of HR management information for planning and decision making. The PERSAL clean-up methodology was also explained to the participants. 18

19. o The DPSA utilised the Offices of the Premiers as points of entry in provinces for the PERSAL clean-up workshops. The Offices of the Premiers then facilitated the organization of workshops with all departments in their respective provinces o On the first day in all provinces, briefing sessions were conducted with the management representatives from all departments including the Office of the Premiers except in Limpopo and North West o In other provinces such as KZN, a presentation on the quality of data for the province was also presented to the HoD Forum o HR Forums in other provinces such as Limpopo were also utilized for presentations on the quality of data o In summary, there was overall commitment on the part of senior management and staff to support and implement the project PERSAL Clean-up 19

20. Example: Improvement on Citizenship Information between 30 September to 31 December 2011 20

21. PERSAL Clean-up PERSAL Clean-up 1.The DPSA will continue enforcing compliance through: Implementation support interventions Continuous monitoring of implementation of recommendations based quarterly reports submitted to departments Continuous monitoring based on Project Plans submitted with timelines Notification of non-compliance to Executive Authority 2. Strengthening accountability Reporting of data quality analysis on regular basis Continue with data quality assessment and will use August 2011 data as baseline to assess the level of improvement in the quality of data 21

22. Questions? 22

23. Abbreviations AMAsset Management BIBusiness Intelligence COTSCommercial-off-the-shelf DPSADepartment of Public Service and Administration FINFinancial Management HoDHead of Department HRMHuman Resource Management GITOCGovernment Information Technology Officer’s Council IFMSIntegrated Financial Management System ICTInformation and Communication Technology NTNational Treasury PMMProcurement Management PSIPrime Systems Integrator SCMSupply Chain Management SITAState Information Technology Agency SLAService Level Agreement URSUser Requirements Statement 23