1. 10/29/10 PRESENTATION TO THE PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION 27 October 2010

2. 2 10/29/10  The Public Service Commission (PSC) has been requested to brief the Committee on the implementation of section 195 of the Constitution, 1996, by the other entities reporting to it  These entities include the Department of Public Service and Administration (DPSA), Public Administration Leadership and Management Academy (PALAMA) and the State Information Technology Agency (SITA)  In order to assess the implementation of section 195 of the Constitution, the PSC normally applies its Transversal M&E System to a department, a process which usually takes a few months  The PSC applied its Transversal M&E System, that evaluates departments against a specific set of indicators and standards that assess the performance of departments against the nine values in section 195 of the Constitution, in the DPSA in the 2007/08 research cycle  The system has not been applied in PALAMA  SITA is established by the SITA Act, 1998 and is governed and controlled by a Board of Directors, appointed by the MPSA after consultation with Cabinet. As it is a public entity, the PSC has not applied its M&E System to SITA 2 INTRODUCTION

3. 3 10/29/10  For each of the entities, the following indicators were used in respect of the 2007/08, 2008/09 and 2009/10 financial years:  Financial Management (Based on previous annual reports, plus interim expenditure reports from National Treasury)  Service Delivery Outputs (Based on Annual Reports)  Human Resource Management and Labour Relations (based on Annual Reports and PSC records)  Ethics and Anti-Corruption (Based on PSC Records)  The National Treasury format for annual reports does not apply to the SITA, and some information normally available in Public Service reports was therefore not readily available, e.g. HR oversight report approach

4. 4 10/29/10 DPSA

5. 5 10/29/10 DPSA: application OF THE m&e sYSTEM PRINCIPLESCORECOMMENT Professional Ethics3,50Disciplinary cases takes on average 53 days (2.75 months) to finalise Training was conducted on conflict management as a pro-active step to reduce disputes Efficiency, Economy and Effectiveness 5,00The prescribed transversal national data management systems, namely BAS, PERSAL and LOGIS was used to generate information to monitor and evaluate the performance of its operations and projects The DPSA was advised to provide the reasons for non-achievement of outputs. This was addressed in the 2006/07 Annual Report  The DPSA’s performance and compliance with the nine Constitutional values and principles for the 2007/08 evaluation cycle was 82%, which is excellent performance against several of the standards

6. 6 10/29/10 PRINCIPLESCORECOMMENT Development-Oriented Public Administration 5,00 Although the Research, Learning and Knowledge Management Component reports on and shares lessons learned, a specific system should be put in place to consciously identify lessons learned and how to apply these to future poverty reduction projects Impartiality and Fairness4,00 A checklist and manual were in place to ensure that decisions are taken in compliance with the principles of administrative justice Public Participation and Policy-making 5,00 Did not have a policy/ guideline on public/ stakeholder participation in policy-making Accountability4,50Unqualified audit 57% of the strategies in the Fraud Prevention Plan had been adopted DPSA: application OF THE m&e sYSTEM (cont)

7. 7 10/29/10 PRINCIPLESCORECOMMENT Transparency5,00Annual report was clearly presented in narrative and pictorial form Following a recommendation that the Department should include a column that indicates the actual performance, this was subsequently included in the 2007/08 Annual Report Good HRM and Career Development 3,00The average time taken to fill a vacant post was 259 days (9 months) This was improved to between 4 and 5 months (82 days) Representivity2,00Women at SMS level: 44.5% Blacks: Only 63.9% instead of 75% People with disabilities: 0,67% instead of 2% DPSA: application OF THE m&e sYSTEM (cont)

8. 8 10/29/10 APPROPRIATION STATEMENT 2007/08 R’000 2008/09 R’000 2009/10 R’000 2010/112 R’000 Final appropriation R 384 063R420 208R429 833R651 484 Actual expenditure R370 325R411 589R417 880R307 127 Variance R13 738 R8 619 R11 953 Expenditure as % of final appropriation 96.4%197.9%197.2%147.1%3 Notes: Outside the margin of 2% As at 31 August 2010 for Vote 11 Above the benchmark of 41.67% at end of August 2010  In the 2007/08, 2008/09 and 2009/10 financial years the DPSA obtained unqualified audit opinions.  No recurring issues emanating from the audits were identified  In the 2009/10 financial year the DPSA incurred irregular expenditure to the amount of R4 464 000  The AG noted that in 2009/10, the Accounting Officer did not provide Parliament with the strategic plan at least 10 days prior to the discussion and the strategic plan does not include indicators for the department’s programmes DPSA: FINANCIAL MANAGEMENT

9. 9 10/29/10  The AG indicated that–  the DPSA has not reported on all the predetermined objectives  the planned and reported performance targets were not specific, measurable and time bound  Changes to the objectives from the approved strategic plan for the year under review were not disclosed and explained  Some of the planned and reported indicators were not verifiable, as it was not possible to adequately validate the processes and systems that produce the indicator  The PSC’s assessment of the performance information found that -  there is a confusion between the output, indicator and target columns in the sense that all three columns give additional descriptions of the output DPSA: PERFORMANCE INFORMATION (2009/10) OutputsPerformance MeasureTarget Development of a Workplace Breast feeding and Childcare Facility Policy (Changed to Development of Guidelines for Childcare Facilities) Consultation with stakeholders Draft guidelines (not policy) Consultation with stakeholders on Draft guidelines Development of an IFMS HR Module on organisational management (IFMS Blueprint) SAP Human Capital Management module HR Module on organisational management developed

10. 10 10/29/10  the actual performance column in some instances describes completed activities that will lead to the production of the output, and it is not possible to determine whether the output had been achieved, e.g. DPSA: PERFORMANCE INFORMATION (2009/10) OutputsPerformance Measure TargetActual Implementation of EH&W Policies (HIV & AIDS & TB; HPM; Wellness: SHERQ) Proportion of Departments supported to implement policies EHW Indaba IX Departments supported to implement policies EHW Indaba IX MOU between DPSA and Jhapiego signed by DG. The implementation was discussed in the March IDC meeting. Provincial workshops will start between May and September 2010. The workshops will coincide with the HIV Counselling and Testing (HCT) Campaign, therefore during these policy communication workshops VCT will occur in support of the mass HCT campaign coordinated by SANAC.

11. 11 10/29/10  it is in some instances not possible to establish whether the output has been achieved  the reasons for non-achievement were not reflected DPSA: PERFORMANCE INFORMATION (2009/10) OutputsPerformance MeasureTargetActual PILIR specific Health Education and promotion programmes Conducted a survey and lifestyle audit within the Public Service. Guidelines on having a Health Education and promotion programme Survey and lifestyle audit within the Public Service conducted Draft report completed on Public Service Guidelines for Smoking Cessation. OutputsPerformance MeasureTargetActual IFMS HR Module Completed HRD module in the IFMS Develop the IFMS Module The development of the HRD module has gone off well. The outstanding work will be finalised during the next quarter.

12. 12 10/29/10 VACANCY RATE AS AT31 March 200831 March 200931 March 2010 No of posts254492529 No of posts filled199385435 Vacancy rate21.7% 17.8%1 1.Vacancy rate the highest at SMS level (23.6% or 29 posts), and the majority of these posts were in the information technology related field DPSA: HUMAN RESOURCES MANAGEMENT EMPLOYMENT EQUITY31 March 200831 March 200931 March 2010 Black people (Target: 90%)84.8%86.5%89% Women at SMS level (Target: 50%) 44.9%39.2%40.4% People With Disabilities (Target: 2%) 1.3%1.6%Not indicated Ideal vacancy rate in the Public Service is at between 7 – 10%

13. 13 10/29/10 FINANCIAL YEAR DG’s PA SUBMITTED EVALUATIONREMARKS 2007/08 Yes 22 Feb 08 No Evaluation documents for DPSA were submitted to the PSC but the evaluation meeting could not be held. 2008/09 Yes 03 July 08 No Evaluation documents were never submitted to the PSC. The DG had since moved to another department. 2009/10 Yes 2 Sept 09 Still to be conducted DPSA: HUMAN RESOURCES MANAGEMENT (cont) In the 2006/07 financial year, the AG noted that the DPSA had not updated its Human Resource (HR) Plan for the year ended 31 March 2009. The HR Plan was subsequently revised and approved on 30 March 2010

14. 14 10/29/10 DISCIPLINE2007/082008/092009/10 No of disciplinary hearings1113 No of people suspended311 Average number of days suspended90112120 Cost (R’000) of suspensionsR46 996R 0R37 744 GRIEVANCES2007/082008/092009/10 No of grievances lodged51412 No of grievances referred to the PSC 204 Nature of grievances Unfair treatment Salary problems Unfair treatment Salary problems Filling of posts Performance assessments DPSA: LABOUR RELATIONS Must hold a hearing within a month or 60 days

15. 15 10/29/10 NATIONAL ANTI-CORRUPTION HOTLINE CASES Financial Year2007/082008/092009/10 2010/11 No of cases referred 0210 Feedback received 0010 Cases closed 0010 Procurement irregularities and maladministration FINANCIAL DISCLOSURE FORMS AS AT 30 APRIL 2007/082008/092009/10 No of SMS members848098 No of FDF received848089 Compliance rate100% 91% FINANCIAL MISCONDUCT CASES REPORTED TO THE PSC 2007/082008/092009/10 No of finalised cases350 Cost of financial misconductR 337 052R 5 0000 Nature of misconduct Financial mismanagement Capture and autho- rise unapproved salary advice DPSA: ETHICS AND ANTI-CORRUPTION

16. 16 10/29/10 PALAMA

17. 17 10/29/10 APPROPRIATION STATEMENT 2007/08 R’000 2008/09 R’000 2009/10 R’000 2010/112 R’000 Final appropriation R131 126R105 527R121 115R651 484 Actual expenditure R131 113R105 365R121 113R307 127 Variance R13 R162 R2 Expenditure as % of final appropriation 100%199.8%1100%147.1%3 Notes: Within the margin of 2% As at 31 August 2010 for Vote 11 Above the benchmark of 41.67% at end of August 2010  In the 2007/08, 2008/09 and 2009/10 financial years PALAMA obtained unqualified audit opinions  No recurring issues emanating from the audits were identified  In the 2009/10 financial year, the AG found that the strategic plan of PALAMA did not include measurable objectives, expected outcomes, programme outputs, indicators (measures) for all the objectives PALAMA: FINANCIAL MANAGEMENT

18. 18 10/29/10  In the 2007/08, 2008/09 and 2009/10 financial years PALAMA Trading account obtained unqualified audit opinions  No recurring issues emanating from the audits were identified TRADING ACCOUNT 2007/08 R’000 2008/09 R’000 2009/10 R’000 Revenue R115 711R124 860R158 030 Expenditure R85 502R137 126R168 605 Variance +R30 209 -R12 2661 -R10 5751 Notes: Deficit from operations PALAMA: FINANCIAL MANAGEMENT (CONT)

19. 19 10/29/10  The AG indicated that for the selected objectives 31% of the planned and reported targets were not:  specific in clearly identifying the nature and the required level of performance  measurable in identifying the required performance  In addition, the AG reported that the internal policies and procedures of PALAMA do not adequately address the process pertaining to the planning and monitoring of predetermined objectives at the overall performance level  29 of the 57 outputs were fully achieved, which constitutes 51% achievement of service delivery outputs. A further 25 (44%) outputs were partially achieved  Reasons for non-achievement include-  Service providers could not confirm their availability for the dates set  Lack of participation by key external stakeholders  Delay in donor funding  Financial constraints PALAMA: PERFORMANCE INFORMATION (2009/10)

20. 20 10/29/10 VACANCY RATE31 March 200831 March 200931 March 2010 No of posts168237242 No of posts filled131130172 Vacancy rate29.6%45.1%129%1 In the 2008/09 and 2009/10 financial years the vacancy rate was the highest at salary levels 6-8 (61.8% and 39%, respectively) PALAMA: HUMAN RESOURCE MANAGEMENT EMPLOYMENT EQUITY31 March 200831 March 200931 March 2010 Black people (Target: 90%)77.1%76.9%79.7% Women at SMS level (Target: 50%) 36.3%40.5%46.5% People With Disabilities (Target: 2%) 1.5% 1.7% Ideal vacancy rate in the Public Service is at between 7 – 10%

21. 21 10/29/10 FINANCIAL YEAR DG’s PA SUBMITTED EVALUATIONREMARKS 2007/08 Yes 18 Oct 08 No Evaluation documents were received incomplete, without a valid verification statement 2008/09 Yes 15 Oct 08 No Evaluation documents were never submitted to the PSC The DG has since left the Public Service 2009/10No Still to be conducted Acting DG PALAMA: HUMAN RESOURCE MANAGEMENT

22. 22 10/29/10 DISCIPLINE2007/082008/092009/10 No of disciplinary hearings30Not indicated No of people suspended10Not indicated Average number of days suspendedNot indicated Cost (R’000) of suspensionsNot indicated GRIEVANCES2007/082008/092009/10 No of grievances lodged0112 No of grievances referred to the PSC 110 The majority of grievances relate to performance assessment and salary problems PALAMA: LABOUR RELATIONS

23. 23 10/29/10 NATIONAL ANTI-CORRUPTION HOTLINE CASES Financial Year2007/082008/092009/10 2010/11 No of cases referred 1000 Feedback received 1000 Cases closed 1000 Appointment irregularities & fraud = unfounded FINANCIAL DISCLOSURE FORMS AS AT 30 APRIL 2007/082008/092009/10 No of SMS members184347 No of FDF received184135 Compliance rate100%95%74%  No finalised financial misconduct cases were reported to the PSC during the 2007/08, 2008/09 and 2009/10 financial years PALAMA: ETHICS AND ANTI-CORRUPTION

24. 24 10/29/10 SITA

25. 25 10/29/10 FINANCIAL PERFORMANCE 2007/08 R’000 2008/09 R’000 2009/10 R’000 Revenue 3 607 6133 933 5703 941 772 Gross surplus 917 323710 151681 491 Surplus for the year before tax 427 974 156 02849 562 Total assets2 560 5662 611 9852 669 100 Net assets1 365 9621 476 4691 510 209 Cash generated from operations271 17187 125191 675  In the 2007/08, 2008/09 and 2009/10 financial years SITA obtained unqualified audit opinions  In all three financial years, the AG noted that a contract management system that facilitates a fair, equitable, transparent, competitive and cost-effective procurement and provisioning system was not in place  In the 2009/10 financial year, irregular expenditure to the amount of R214 million was incurred as a proper procurement and provisioning process was not followed  The Strategic Plan and budget for the 2010/11 financial year had not been approved by the EA of SITA within the prescribed periods SITA: FINANCIAL MANAGEMENT

26. 26 10/29/10  In regard to non-adherence to legislation, the AG found that in some instances-  service level agreements were not signed or concluded  the invitation to tender occurred without an approved business case  the business cases did not include a budget for the required goods and services  a procurement schedule for the execution of a request for a bid was not submitted for approval to the designated official at the government department  bid responses received after the approved bid closing date were evaluated  the declaration of interest form was not completed and signed at meetings  the information used in the evaluation reports did not agree to bid responses submitted by the bidder  quotations were requested from suppliers who were not on the list of preferred suppliers SITA: FINANCIAL MANAGEMENT (CONT)

27. 27 10/29/10  The AG indicated that for the selected objectives –  44% of the planned and reported measures were not clear, with an unambiguous definition to allow for data to be collected consistently  22% of the planned and reported targets were not specific in nature and measurable in identifying the required performance  13 of the 22 outputs were fully achieved, which constitutes 59% achievement of service delivery outputs  Reasons for non-achievement include-  Decrease in spending by customers and SITA tariffs were not increased  Challenges with regard to debt collection from clients  High leadership turnover and the impact thereof on staff morale SITA: PERFORMANCE INFORMATION (2009/10)

28. 28 10/29/10 SITA: HUMAN RESOURCE MANAGEMENT EMPLOYMENT EQUITY31 March 200831 March 200931 March 2010 Black people (Target: 62%)59.8%62.8%64.9% Women (Target: 46%)45%45.9%46.1% People With Disabilities (Target: 1%) Not indicated1.3%1.5% Note: The targets mentioned above are obtained from the Annual Reports and are not similar to those in the Public Service  The turnover on critical skills and best performers was 1.78%, as compared to the target of 7%  22% of the training budget was spent on leadership development

29. 29 10/29/10  The AG noted the following in respect of the 2009/10 financial year:  The Special Investigation Unit is investigating four cases relating to procurement irregularities  As at 31 March 2010, internal audit had completed 15 investigations. These investigations related to- Irregularities within the procurement process (12) Human Resources matters and contract and invoicing disputes (3) In addition, one case was handed to the Commercial Crime Unit of the SAPS  As at 31 March 2010, there were 20 cases under investigation by internal audit. These investigations related to procurement irregularities, conflicts of interest and irregularities in the human resource and payroll departments SITA: ETHICS AND ANTI-CORRUPTION NATIONAL ANTI-CORRUPTION HOTLINE CASES Financial Year2007/082008/092009/10 2010/11 No of cases referred 1400 Feedback received 0000 Cases closed 0000 Procurement irregularities, nepotism and fruitless expenditure

30. 30 10/29/10  This presentation has highlighted areas that impact on the performance of the DPSA, PALAMA and SITA in respect of key issues over a period of three financial years  The PSC trusts that the information highlighted in this presentation addresses the Portfolio Committee’s request to be briefed on the implementation of section 195 of the Constitution, 1996, by the other entities reporting to it CONCLUSION

31. 10/29/10 THANK YOU