1. 1 PRESENTATION TO THE SELECT COMMITTEE ON LOCAL GOVERNMENT AND ADMINISTRATION PUBLIC SERVICE COMMISSION ANNUAL REPORT 2005/06 OCTOBER 2006

2. 2 OVERVIEW OF PRESENTATION INTRODUCTION PROGRAMME PERFORMANCE  PROGRAMME 1: ADMINISTRATION  PROGRAMME 2: INVESTIGATIONS AND HUMAN RESOURCE REVIEWS  PROGRAMME 3: MONITORING AND EVALUATION CONCLUSION

3. 3 INTRODUCTION The PSC is an institution created by the Constitution and vested with a custodial oversight responsibility for the public service, a position which has put the PSC in a situation where it has gained a comprehensive view of how the Public Service hangs together and has been performing. In executing its Constitutional mandate the PSC is required both by the Constitution and its founding Act to be impartial and independent and to perform its functions and exercise its powers without fear, favour or prejudice in the interest of the maintenance of effective and efficient public administration and a high standard of professional ethics in the public service.

4. 4 INTRODUCTION (cont’d) In terms of its mandate the PSC promotes the values and principles that govern public administration. Notwithstanding its independence, the PSC seeks to play a developmental role by ensuring that its programmes support government initiatives to strengthen service delivery. To this end, the PSC sees its strategic obligation as the generation of evidence to enable Parliament to exercise its oversight role, and to advise the Executive on good administrative practice. It’s work in the field of anti-corruption and professional ethics has substantially escalated through its management of the National Anti-Corruption Hotline and its conducting of public administration investigations.

5. 5 INTRODUCTION (cont’d) It has continued to roll out its Monitoring and Evaluation System and has also put mechanisms in place to facilitate citizen participation in governance. There has been a consistent increase in demands for the PSC’s intervention in all areas of its mandate. The PSC has, amongst others, been involved in the Programme of Assistance to the KZN provincial administration. The Programme involved the Departments of Education, Health, Housing, Local Government and Traditional Affairs, Social Welfare and Population Development, and the Office of the Premier. This presentation reflects on the PSC’s activities during 2005/6.

6. 6 PROGRAMME PERFORMANCE The PSC is divided into three Branches  Programme 1: Administration  Programme 2: Investigations and Human Resource Reviews.  Programme 3: Monitoring and Evaluation

7. 7 Programme 1 ADMINISTRATION AIM:This programme is responsible for the overall management and support of the PSC

8. 8 Income Statement for the year ended 31 March 2006 R’0002005/062004/052003/04 Voted Funds86 10673 08164 215 Other revenue243189229 Local & foreign aid assistance 482135343 Total86 83173 40564 787

9. 9 Income Statement for the year ended 31 March 2006 R’0002005/06%2004/05%2003/04% Compensation of employees57 0086750 4427146 07171 Goods and services24 9032919 5742716 54626 Financial transactions in assets and liabilities 5410224 Local and foreign assistance461135343 Transfers and subsidies192171133 Machinery and equipment2 553386811 1002 Software and other intangible assets 156371 Total85 18610071 26310064 488100

10. 10 Income Statement for the year ended 31 March 2006 Net Surplus R’0002005/062004/052003/04 Net Surplus1 6452 142299 Made up as follows: Voted funds surrendered 1 381 (1.6%) 1 953 (2.7%) 70 (0.1%) Other Revenue surrendered 264189229

11. 11 Report of the Audit Committee for the year ended 31 March 2006  The Audit Committee meets at least two times per annum as per approved Audit Committee Charter. During the year under review, five meetings were held.  In line with the PFMA requirements Internal Audit provided the Audit Committee and management with independent assurances that internal controls were appropriate and effective.  The Audit Committee is satisfied with the content and quality of monthly and quarterly reports prepared and issued by the Accounting Officer and the Office during the year under review.  The Audit Committee concurs and accepts the conclusions of the Auditor-General on the Annual Financial Statements and is of the opinion that the audited Annual Financial Statements fairly represent the position and performance of the OPSC, based on the audit done.

12. 12 Management Report for the year ended 31 March 2006  Surplus decreased from 2.7% in 2004/05 to 1.6% in 2005/06  An amount of R675 000 has been requested for roll-over to the 2006/2007 financial year for the funding of projects which could not be completed during the 2005/2006 financial year as originally planned.  Donor funds amounting to R482 000 were drawn and R461 000 were utilised during the period under review compared to R135 000 in the previous financial year. The OPSC however, continued to receive donor funds in kind mainly from GTZ.  There were no material events that occurred after 31 March 2006.

13. 13 Report of the Auditor-General for the year ended 31 March 2006  The Audit Report of the Auditor-General was unqualified.  There were no matter of emphasis.

14. 14 Human Resources Management Report for the year ended 31 March 2006  Vacancy rate 12.13%  Overall staff turnover rate 14.76%  1 misconduct and disciplinary hearing held  1 official on precautionary suspension  Three grievances lodged by organised labour on behalf of their members and were resolved

15. 15 AIM: To enable the Commission to improve labour relations and management, undertake public administration audits and investigations and promote anti-corruption practices; and review the implementation of human resource practices in the Public Service. This programme is divided into 3 Sub-Programmes:  Labour Relations Improvements  Public Administration Investigation  Professional Ethics and Human Resource Reviews PROGRAMME 2 INVESTIGATIONS AND HUMAN RESOURCE REVIEWS

16. 16 Sub-Programme: Labour Relations Improvements AIM  To enhance public service labour relations and management by conducting investigative research and providing advice on complaints, grievances, labour relations practices and policies. MEASURABLE OBJECTIVES  To investigate grievances and complaints lodged by public servants and to recommend appropriate remedies to national and provincial Executive Authorities  To conduct investigations into complaints relating to the application of personnel and public administration, and  To conduct research on issues relating to the implementation of labour relations principles.

17. 17 Sub-Programme: Labour Relations Improvements (cont’d) OUTPUTS  Guidelines on the management of grievances were developed and published during the first quarter of 2005/6.  486 grievances were received and 406 were finalised. Of these, 364 were referred due to the fact that the PSC had no jurisdiction to consider them.  The merits of 42 grievances were considered and seven were found to be substantiated.  Research into the management of poor performance in the public service commenced.

18. 18 Sub-Programme: Public Administration Investigations AIM  To undertake audits and investigations into public administration practices. MEASURABLE OBJECTIVES  To investigate public administration practices and make recommendations to departments,  To undertake forensic audits and investigations into public administration practices, and  To monitor and evaluate financial misconduct cases and maintain a database

19. 19 Sub-Programme: Public Administration Investigations (cont’d) OUTPUTS  12 investigations and reports on various allegations regarding financial, procurement and human resource related irregularities and other forms of maladministration in the following Departments / organisational components were finalized: Department of Correctional Services Department of Finance and Economic Affairs in Gauteng Department of Arts, Culture and Tourism in KZN Gauteng Shared Services Center Judicial Inspectorate of Prisons

20. 20 Sub-Programme: Public Administration Investigations (cont’d) Outputs (continued) Department of Education Limpopo National Prosecuting Authority Department of Agriculture and Land Administration – Mpumalanga Department of Water Affairs and Forestry  Ministry of Safety and Security  Independent Complaints Directorate  Department of Finance in Mpumalanga  Emanating from the management of the National Anti- Corruption Hotline, 263 service delivery related complaints were referred to Departments (57 of these were referred to provincial departments).  A report on financial misconduct was produced.

21. 21 Sub-Programme: Professional Ethics and Human Resource Reviews Aim:  To establish a culture of professional and ethical behaviour and to review human resource practices in the public service Measurable Objectives To review human resource practices in the public service To research and evaluate professional ethics and corruption prevention To monitor and raise awareness of conflict of interest issues among managers and maintaining the financial disclosure framework

22. 22 Sub-Programme: Professional Ethics and Human Resource Reviews As part of Secretariat Services to the National Anti-Corruption Forum (NACF), a national Anti Corruption Programme was adopted. The PSC took the lead as secretariat with the development of the following during the period under review:  NACF Website;  A logo; and  NACF Ethics Statement. In managing the National Anti-Corruption Hotline, the PSC referred 1681 cases of alleged corruption to departments (799 of these were referred to provincial departments). The PSC continued to manage the financial disclosure framework for senior managers and a compliance rate of 77% has been achieved (the provincial compliance rate was 74%).

23. 23 Sub-Programme: Professional Ethics and Human Resource Reviews The following reports were produced:  Proceedings of the Second National Anti-Corruption Summit  Management of Conflicts of Interests in the Public Service  Audit of Affirmative Action in the Public Service  Evaluation of the Implementation of the Policy Framework for Managing HIV and AIDS in the Public Service  Staff Turnover in The Presidency.

24. 24 PROGRAMME 3: MONITORING AND EVALUATION AIM: To enable the Commission to establish a high standard of public service leadership, good governance and improved service delivery through public participation. This programme is divided into three sub-programmes:  Governance Monitoring  Leadership and Performance Improvement  Service Delivery and Quality Assurance

25. 25 Sub-programme: Governance and Monitoring (cont’d) Aim:  To promote good governance and improve governance practices in the Public Service. Measurable Objectives: To monitor and evaluate the implementation of the principles governing public administration; and To monitor and evaluate the implementation of compliance framework in the area of selected legislation, e.g. the Promotion of the Administrative Justice Act and Promotion of the Access to Information Act.

26. 26 Sub-programme: Governance and Monitoring (cont’d) Outputs: Ten reports on departments’ compliance with the Constitutional Values and principles of public administration were produced. The reports focused on 2 departments in each of the following provinces:  Gauteng  Limpopo  Mpumalanga  North West, and  Northern Cape

27. 27 State of the Public Service Report, 2006, was released. The report received good coverage, and continues to inform discussions on Public Service delivery. Consolidated Monitoring and Evaluation Report for the 2004/2005 research cycle was produced. Audit of Departmental Monitoring and Evaluation Reporting was completed. A set of guidelines was developed to empower departments to verify the qualifications of all staff already employed by the State. Officials from national and provincial departments were workshopped on these guidelines. A report on the implementation of the Promotion of Administrative Justice Act was completed. Sub-programme: Governance and Monitoring (cont’d)

28. 28 Sub-programme: Leadership and Performance Improvement Aim:  To promote a high standard of public service leadership and to encourage improvements in service delivery. Measurable Objectives: To facilitate the evaluation of national and provincial HoDs; To provide guidelines on the performance management of Hods; To advise Executing Authorities and HoDs on the quality of performance agreements; and To conduct evaluations of key government programmes

29. 29 Sub-programme: Leadership and Performance Improvement (cont’d) Outputs: Fourteen national HoDs and 23 provincial HoDs were evaluated. The number of HoDs evaluated is determined by a number of factors including:  whether HoDs have completed qualifying periods; and  whether a signed performance agreement is in place. The HoD evaluation framework was reviewed, leading to new Evaluation Guidelines being issued. A draft report containing a database of all poverty reduction programmes has been developed.

30. 30 Sub-programme: Service Delivery and Quality Assurance Aim:  To promote improved service delivery through public participation and quality audits. Measurable Objectives: To conduct performance and management audits; To promote Batho Pele compliance; To assess the impact of the quality assurance assessment methodology; To plan, conduct and manage citizen satisfaction surveys and citizens’ forums; and To monitor and investigate adherence to applicable procedures in the Public Service.

31. 31 Sub-programme: Service Delivery and Quality Assurance (cont’d) Outputs: A Citizen Satisfaction Survey focusing on Economic and Infrastructure services was completed. The survey covered a sample of citizens from all the nine provinces. A Citizen Forum Report on Pilots conducted in the Eastern Cape and Mpumalanga was produced. A toolkit for conducting Citizens’ Forums were compiled. Draft reports on Access and Redress were compiled. A protocol for conducting service delivery inspections was developed.

32. 32 CONCLUSION It is clear from the demands being placed on the PSC and its resources that the strategic role it plays within our democracy is increasingly being recognised and the value it adds is being appreciated. The PSC will continue to assist the Select Committee in exercising it oversight responsibility and looks forward to further frequent engagements on its work.

33. 33 THANK YOU