1. PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION AS WELL AS PLANNING, MONITORING AND EVALUATION PRESENTATION ON THE 2014/15 ANNUAL REPORT, 2015/16 APP & BUDGET 14 OCTOBER 2015

2. PRESENTATION OVERVIEW  The PSC has been requested to brief the Committee on the tabled Annual Report for 2014/15. The presentation reflects on the following: Annual report focusing on financial and non- financial performance for 2014/15 financial year. Linking spending and performance targets and outcomes, explaining deviations from what was planned Provide financial and non-financial performance on the 2015/16 Annual Performance Plan. Indicate any challenges encountered and their potential impact on service delivery and its contribution to the National Development Plan Forward funding or realignment for the medium term budget 2

3. 2014/15 ANNUAL REPORT

4. OVERALL PERFORMANCE (1) The PSC received an unqualified ‘clean’ audit report for the 2014/15 financial year. The PSC made strides in achieving its targets during the 2014/15 financial year through the implementation of its re-engineered business processes as well as streamlining some of the work of the PSC In ensuring that the PSC supports its stakeholders in a structured manner, the PSC adopted a cluster approach which resulted in Commissioners based at the National Office supporting particular clusters of departments in all the key performance areas of the PSC Likewise, the provincially based Commissioners support provincial departments in their respective provinces In pursuit to operate efficiently, the PSC reviewed its Governance Rules, which were gazetted, with an implementation date of 1 April 2015 The PSC also increased its visibility through inspections, Citizens Forum, provincial stakeholder engagements and the Developmental State Conference 4

5. 5 Overall performance Budget R’000 Financial Appropriation Actual Expenditure (Over)/Under Expenditure 226 031225 800231 (0.1%) Performance targets and outcomes Partial achievement includes investigation of complaints and the management of the NACH, which is regarded as on going work The budget was also utilised to implement ad hoc projects, which were not initially funded OVERALL PERFORMANCE (2)

6. 2014/15 FINANCIAL YEAR PERFORMANCE (3) 6 ProgrammeAdministration PurposeProvides overall management of the PSC and centralised support services Key achievements Received an unqualified audit for the 2014/15 financial year A vacancy rate of below 10% was maintained (7% as at 31 March 2015) Exceeded the national target of 50% for the employment of women in the SMS by 3.4% Increased visibility of the PSC activities through media coverage on- o Inspections at Steve Biko, Chris Hani and Pelonomi hospitals o Developmental State Conference o Celebration of International Anti-Corruption Day o Inspections on Learner Teacher Support Material Stakeholder engagement sessions were held in Gauteng, Eastern Cape, Limpopo and Mpumalanga

7. 2014/15 FINANCIAL YEAR PERFORMANCE (4) 7 ProgrammeAdministration Budget R’000 Final Appropriation Actual Expenditure (Over)/Under Expenditure 107 293107 076217 (0.2%) Performance targets and outcomes DeviationsE.g. Delays in the payment of invoices were due to disputes regarding the invoices, representativity target in respect of People with Disabilities was not met, dependence on third parties with regard to signing of MoUs

8. 2014/15 FINANCIAL YEAR PERFORMANCE (5) 8 ProgrammeLeadership and Management Practices PurposePromoting sound Public Service leadership, human resource management, labour relations and labour practices Key achievements 90% (778) of grievances were concluded Factsheet on Grievance Trends for the 2013/14 financial year A roundtable discussion on the causes of PMDS related grievances was hosted Report on the assessment of the implementation of policy framework on the appointment of ministerial staff in national and provincial departments Factsheet on the employment equity profile of SMS members within the Public Service Research was also conducted on key aspects of public service leadership in a Developmental State Selected PSC reports from the previous financial years were presented to EAs and HoDs and other stakeholders such as portfolio committees

9. 2014/15 FINANCIAL YEAR PERFORMANCE (6) 9 ProgrammeLeadership and Management Practices Budget R’000 Final Appropriation Actual Expenditure (Over)/Under Expenditure 35 74835 7426 (0.02%) Performance targets and outcomes DeviationsBudgetary constraints to conduct more roundtable discussions, delays during data collection and analysis and delays in obtaining information from departments timeously. In response to the needs of the stakeholders as well as due to budget constraints, the PSC had to constantly re-prioritise its outputs and consider ad hoc outputs

10. 2014/15 FINANCIAL YEAR PERFORMANCE (7) 10 ProgrammeMonitoring and Evaluation PurposeEstablishing a high standard of service delivery, monitoring and good governance in the Public Service Key achievements The PSC hosted a high level conference on the Developmental State, wherein a discussion document on the character of the Public Service and its performance was debated by key stakeholders. This was followed by a Strategic Framework document that contains specific recommendations of the PSC on the direction of change of the Public Service to make it better instrumental to serve South Africa and its people. The PSC will pursue the adoption of these recommendations through engagement with key stakeholders Responded to requests from Parliament and selected provincial legislatures to provide information pertaining to the state of the Public Service performance Inspections were conducted in some of the key hospitals in the country such as Rob Ferreira, Pelonomi, Steve Biko and Chris Hani Baragwanath to assess the delivery of health care services rendered to the public

11. 2014/15 FINANCIAL YEAR PERFORMANCE (8) 11 ProgrammeMonitoring and Evaluation Key achievements (cont.) Inspections were also conducted in the education sector in all provinces to determine the availability of learner and teacher support material as well as the readiness of schools to commence with teaching and learning at the beginning of the 2015 Budget R’000 Final Appropriation Actual Expenditure (Over)/Under Expenditure 37 33537 3305 Performance targets and outcomes DeviationsDelays as a result of diverting resources to the Developmental State Project (the Conference was prioritised to respond to the National Development Plan), as well as requests for presentations on the state of the Public Service performance Re-priorisation also had to undertaken in order to implement ad hoc outputs

12. 2014/15 FINANCIAL YEAR PERFORMANCE (9) 12 ProgrammeIntegrity and Anti-Corruption PurposeUndertaking public administration investigations, promoting a high standard of professional ethical conduct amongst public servants and contributing to the prevention and combating of corruption Key achievements 57% (237 out of 419) of complaints lodged with the PSC through the Complaints Rules were finalised Factsheet on cases of financial misconduct and the recovery of money lost through financial misconduct for 2013/14 Discussion document on what constitutes financial misconduct 100% scrutiny of financial disclosure forms of members of the SMS Management of the National Anti-Corruption Hotline (64% of the cases closed/ recovery of R333 million from perpetrators since the inception of the NACH)

13. 2014/15 FINANCIAL YEAR PERFORMANCE (10) 13 ProgrammeIntegrity and Anti-Corruption Key achievements (cont.) Report on nature and extent of the protection of whistle- blowers and investigators Analysis of the economics of corruption State of integrity in the Public Service Budget R’000 Final Appropriation Actual Expenditure (Over)/Under Expenditure 45 65545 6532 (0,00%) Performance targets and outcomes DeviationsDelays in submission of required information by departments/ stakeholders, increases scope of work initially planned

14. 2015/16 ANNUAL PERFORMANCE PLAN

15. OVERALL PERFORMANCE (1) As at 30 September 2015, 75% of the grievances submitted to the PSC were closed Reports on the inspections into the availability of medicines and medical equipment at selected health facilities were produced The PSC-led Citizens Forum in Thembisile Hani Municipality has yielded positive results for the community, as the provincial Department of Health has committed to provide mobile clinic services in Ward 20 and the provincial Department of Education has committed to procure prefabricated mobile classrooms and furniture There has been a slight increase in the compliance rate for the submission of financial disclosure forms from 82% by the due date of 31 May 2015 to 84% as at 30 September 2015 The closure rate of NACH cases has improved as 69% of cases have been closed as compared to 66% in July 2015 14

16. BRANCH: LMP (2) Grievance management: The 1 st issue of the Grievance Management Communiqué, aimed at empowering departments, labour relations officers and employees on the management of grievances was produced. It deals with, amongst others, prescripts and case law related to PMDS grievances Draft reports on the assessment of the effective and efficient functioning of the Offices of the State Attorney and Chief State Law Advisor have been compiled The findings from the audit on the recruitment and selection processes in the Gauteng Department of Finance have been submitted to the relevant EA The PSC is finalising its 3 rd input to the Presidential Remuneration Review Commission, which focuses on all public administration departments and entities 15

17. A discussion document on the “description of the Occupational Classification in the Public Service” was submitted to the Presidential Remuneration Review Commission. Through this project, the PSC hopes to contribute to the NDP’s vision of building a meritocratic and professional public service. Reports on the support initiatives to the Limpopo Department of Economic Development on the creation of key capabilities and the Department of Public Works with regards to performance management have been produced. To ensure that service delivery in hospitals is improved in line with government’s delivery outcome on Health, namely, “a long and healthy life for all South Africans” the PSC carried out inspections into the availability of medicines and medical equipment at selected health facilities, as well as on the role of Health District Offices. The reports thereof have been produced. BRANCH: M&E (3) 16

18.  Through the PSC-led Citizens’ Forum held in Thembisile Hani Municipality in Mpumalanga, the provincial Department of Health committed to provide mobile clinic services in Ward 20 by November 2015 and the provincial Department of Education committed to procure prefabricated mobile classrooms and school furniture by December 2015  A report on the evaluation of high performing rural schools in Limpopo, which sought to identify best practices amongst high performing rural schools in Limpopo in order to share these with schools that are struggling to improve their performance was produced  This report will contribute to improving the quality of education and support government’s plans and efforts to do so as reflected in the NDP and Outcome 1 of government’s Apex priorities BRANCH: M&E (4) 17

19. Public Administration Investigations: Verification of financial misconduct reports submitted to the PSC for the 2014/15 financial year is underway. The PSC requires that these reports be signed off by the Accounting Officers prior to submission BRANCH: IAC (5) 18 With regards to the investigations on the awarding of higher salaries in the National Departments of Transport and Labour, data analysis has commenced for the DoT while documentation is awaited from the Department of Labour

20. In promoting professional ethics and in particular, the Code of Conduct for the Public Service, the PSC held 13 workshops at national and provincial departments As at 30 September 2015, the submission rate of financial disclosure forms, even after the due date of 31 May 2015 was as follows: National departments (4 133) (73%) Provincial Departments (4 129) (99%) Overall (8 262) (84%)  The PSC has witnessed huge successes in the fight against corruption, through the management of the NACH as such, a total of 3 570 officials were found guilty of misconduct related to corrupt activities between September 2004 and September 2015  The successful investigation of cases of alleged corruption reported to the NACH resulted in the recovery of R340 million from perpetrators BRANCH: IAC (6) 19

21.  Management of the NACH as at 30 September 2015: National/ Province Cases referred % Feedback Received Cases Closed % Cases Closed National 6 42673%3 87460% Eastern Cape 70987%44463% Free State 32471%21065% Gauteng 1 79881%1 28471% KwaZulu-Natal 69255%13319% Limpopo 48595%30964% Mpumalanga 1 09086%88081% North West 42260%17842% Northern Cape 11058%4945% Western Cape 51584%30760% Public Entities 3 60097%3 49897% TOTAL 16 17181%11 16669% BRANCH: IAC (7) 20

22. During the execution of its work, the PSC is faced with numerous challenges such as: The research work and investigations conducted by the PSC are largely dependent on inputs from departments. The PSC will need to exercise its powers and issue summons to the departments to ensure timely finalisation of its projects As a result of the tight schedules of the respective Executive Authorities to avail themselves to receive reports from the PSC, the PSC decided to instead engage with their Chiefs of Staff in the Ministries for timely presentation of the findings and recommendations At national level, the PSC’s current temporary accommodation is on 18 months lease and effort are under way to secure permanent office accommodation for the PSC. This is the case in selected provinces The PSC pays to access Deeds registry database to be able to conduct scrutiny with regard to financial disclosures for Senior Managers and department will need to be engaged in this regard As a result of limited human and financial resources, ad hoc requests from stakeholders that require the PSC to conduct further or additional research place a strain on its limited resources CHALLENGES (8) 21

23. BUDGETARY MATTERS

24.  Overview of financial performance as at 31 August 2015: BUDGETARY MATTERS (1) ProgrammeBudgetSpendingSpending Norm (41. 6%) Admin100 22638 004 37.92% LMP 38 59916 09041.68% M&E 37 00614 66039.61% IAC 46 26919 37641.88% TOTAL222 10088 13039.68% The PSC has received additional funds of R4, 352 million in September 2015 for the 2015/16 financial year to cover a portion of the Compensation of Employees budget shortfall emanating from the 2015 public sector wage agreement. This will increase the budget allocation to R226 million The PSC has implemented cost containment measures in order to augment the shortfall in the budget 2 posts of Commissioners were vacant, Commissioner for KZN assumed duty on 1 September 2015 23

25. BUDGETARY MATTERS (2) MTEF R’000 2013/142014/152015/162016/172017/182018/19 2013 196 324207 379199 647 2014 226 031211 031224 413 2015 222 100234 233253 397 2016 234 233253 397268 094 The baseline allocations for 2014/15 were increased to R207,3 million. However, there was a decrease in the allocation for 2015/16 National Treasury was informed about the anomaly in the budget allocation, as there was a decrease in the budget allocation for the other subsequent years Instead of National Treasury correcting the shortfall in the budget, the PSC received additional funding amounting to R11.069 million for 2015/16, R12.136 million for 2016/17 and R8.314 million for 2017/18 financial years in respect of rental for new office accommodation The additional funds received for the above mentioned financial years have been earmarked for office accommodation (cannot be used for any other purpose other than paying for rentals) 25

26. For the 2016 Medium Term Expenditure Framework (MTEF) budget process, the PSC has not requested or motivated for additional funding but has requested National Treasury to address the anticipated shortfall of R16 million in the Goods and Services budget that arose from the error during the 2013 MTEF process The PSC is still awaiting feedback from National Treasury regarding the allocation for 2016 MTEF process In order to strengthen its financial management and ensure that there is integrity in the budget amount, the PSC has implemented the following: Aligned the budget process to the strategic planning process Project costing is now part of the organisational culture Zero-based budget system implemented, to ensure that budget allocations are consistent and are informed by the strategic priorities of the organisation This will ensure that the PSC only commits to projects within its financial abilities 25 BUDGETARY MATTERS (3)

27. CONCLUDING REMARKS The PSC will continue to execute its mandate by conducting oversight work in the Public Service Although the limited financial resources have a severe impact on the PSC’s ability to be able to fully implement in its mandate, the PSC will continuously need to prioritise its work and also re-prioritise those projects for implementation in the outer years The support of the Portfolio Committee will be invaluable in ensuring that the accepted recommendations emanating from the work of the PSC are implemented by the respective departments in the Public Service 26

28. PSC Website: www.psc.gov.za National Anti-Corruption Hotline for the Public Service: 0800 701 701