Budgetary Review and Recommendation Report of the
Portfolio Committee on Public Service and Administration on the Performance of
the Department of Public Service and Administration for the 2011/12 Financial
Year.
The Portfolio
Committee on Public Service and Administration (the Committee), having assessed
the performance of the Department of Public Service and Administration, reports
as follows:
1. Introduction
1.1 Mandate of the Committee,
including provision of Section 5 of the Money Bills Amendment Procedures and
Related Matters Act, No. 9 of 2009.
The mandate of the
Portfolio Committee on Public Service and Administration (DPSA) is underpinned
by the provisions of the Constitution of the
§
conduct oversight on behalf of the
public, over the Department of Public Service and Administration, to ensure
executive enforcement of delivery of services to the people, as enshrined in
the Constitution of the
§
oversee and review all matters of
public interest relating to the public sector and economic development to
ensure service delivery;
§
ensure compliance by the Department
and its entities to relevant legislation (financial and other); and
§
monitor the expenditure of the
Department and its entities and ensure regular reporting to the Committee,
within the scope of accountability and transparency.
According
to Section 5 of the Money Bills Amendment Procedure and
related Matters Act, the National Assembly, through
its Committees, must annually assess the performance of each national
department. The Committee must submit an annual Budgetary Review and
Recommendation Report (BRRR) for each department that falls under its oversight
responsibilities, for tabling in the National Assembly. The Committee on
Appropriations should consider these when it is considering and reporting on
the Medium-Term Budget Policy Statement (MTBPS) to the House.
The Portfolio Committee on Public
Service and Administration considered and adopted the Budget of the Department
of Public Service and Administration on 2012. The Committee, in compiling this
report, interacted and engaged with the following source documents:
·
The report of the Auditor-General
South Africa (AGSA) on the financial statements of the DPSA for 2011/12
·
The Annual report of the DPSA for
2011/12, in terms of Section 65 of the Public Finance Management Act of No.1 of
1996, which requires the Ministers to table the annual reports and financial
statements for the department and public entities to Parliament
·
Section 32 Expenditure reports, in
terms of the Public Service Finance Management Act, 1999 and reports of the
first quarter of 2012/13 financial year.
A strategic
workshop was held with the Department and all public entities reporting to it,
which included the Ministry and all senior managers
The Committee
reviewed the annual reports of the Public Administration Leadership and
Management Academy (PALAMA) and the Public Service Commission (PSC). The two
entities received transfers from DPSA Budget vote for 2012/13. The State Information Technology Agency
(SITA) was also reviewed, despite it not receiving public funds directly from
DPSA. It receives public funds indirectly, as it provides ICT Services to
Government. It is, as a result, accountable to the Minister of Public Service
and Administration.
1.2 Mandate of the Department of Public Service and Administration
The Department of Public Service and Administration is
a state department dealing with Public Service personnel matters relating to
conditions of service, management of compensation, human resources, labour
relations, Public Service governance, service delivery, state information
technology, capacity building, and skills management. The Department has
technical oversight over all state departments, as they deliver a service to the
people of
The Department is consequently
responsible for providing the institutional arrangements and governance
frameworks to ensure an efficient and effective Public Service by, among other
things, ensuring that its people-processes and technologies are aligned to
support the fundamental requirement of Government for good public
administration.
2. Strategic Priorities and Measurable Objectives of
the Department
2.1 Strategic Priorities of the South African
Government
·
Improving education.
·
Improving healthcare.
·
Creating decent work.
·
Fighting crime and corruption.
·
Rural development and land reform.
2.2 Strategic Priorities of the Department set against
priorities of Government
These are:
3. Analysis of Strategic Plans of the Department
Budget
Vote 12 was referred to the Portfolio Committee on Public Service and
Administration on the 09 March 2011, for consideration and report. The
Committee’s consideration of Budget vote 12 for 2011/12 is in line with the
responsibility conferred upon it by Section 42(3) of the Constitution, 1996.
3.1 Overview
of Budget Vote 12 for 2011/12
The
mandate of the Department of Public Service and Administration (DPSA) has
evolved over time. Initially the DPSA’s focus was solely on formulating
transformative policies and frameworks for the Public Service. The Department is now able to provide
implementation-support to other national and provincial departments according
to Section 100 of the Constitution in order to ensure compliance with the
policies and frameworks; improve service delivery and performance, while it
strengthens its monitoring and evaluation functions.
The
evolved mandate of the DPSA is aligned to the Millennium Development Goals
(MDGs) South
Budget
vote 12 is divided into six programmes that address the ten strategic
objectives of the Department. The six programmes and their purposes are:
·
Programme
1: Administration
Provide policy, strategic leadership and overall management of the
department.
·
Programme
2: Human Resource Management and Development
Develop, implement and monitor human resource management policies
·
Programme
3: Labour Relations and Remuneration Management
Develop, implement and maintain labour relations and compensation
policies. Ensure co-ordinated engagement with organised labour.
·
Programme
4: Public Sector Information and Communication Technology
Develop, implement and monitor information communication technology
policies and norms and standards that enable citizen centred services
·
Programme
5: Service Delivery and Organisational Transformation
Promote a service delivery and organisational transformation framework.
Engage in interventions and partnerships to promote efficient and effective
service delivery.
·
Programme
6: Governance and International Relations
Improve participatory governance, strengthen the fight against
corruption, and engage with international partners in the field of public
administration.
Displayed
below is a breakdown of the allocated funds per programme:
Table 1: Breakdown of allocated
funds per programme for Budget Vote 12
|
R
thousand |
2011/12 |
2012/13 |
2013/14 |
|
|
Total
to be appropriated |
Total |
Total |
||
|
MTEF
allocation |
|
|
|
|
|
1. Administration |
165259 |
176650 |
189937 |
|
|
2. HRM and Development |
33966 |
36475 |
39489 |
|
|
3. Labour Relations and
Remuneration Management |
23273 |
25332 |
27012 |
|
|
4. Public Sector Information and
Communication Technology Management |
40862 |
43301 |
46037 |
|
|
5. Service Delivery and Organisational
Transformation |
204843 |
214314 |
227832 |
|
|
6. Governance and International Relations |
221866 |
230155 |
244235 |
|
|
Total Estimates |
690069 |
726227 |
774542 |
|
Transfers
from Budget Vote 12 are made to the Public Service Commission (PSC), the Centre
for Public Service Innovation (CPSI), Public Services Sector Education Training
Authority (PSETA) and the Public Administration Leadership and Management
Academy (PALAMA).
The
Public Service Commission (PSC) is the only body empowered and constitutionally
mandated to oversee and evaluate the functioning of the Public Service with a
view to establishing good governance and best-practice principles. The Public
Service Commission’s transfer from Budget Vote 12 amounts to R151, 051 million.
The
Public Administration Leadership and Management Academy’s (PALAMA) primary
responsibility is to ensure the provision of training and management
development for public servants in order to improve the capacity of the state.
The aim of PALAMA is to provide and co-ordinate the provision of training and
management development interventions that lead to improved performance and
service delivery in the public sector. PALAMA receives a transfer of R118, 414
million from Budget Vote 12 for 2011/12..
The
Centre for Public Service Innovation (CPSI) receives a transfer of R14, 848
million, while the Public Services Sector Education Training Authority (PSETA)
receives R21, 044 million transfer from Budget Vote 12 for 2011/12.
The
State Information Technology Agency (SITA) was established in 1999 to
consolidate and co-ordinate the state’s information technology resources to
save costs through scale, to increase delivery capabilities and to improve
interoperability. SITA was established in terms of the SITA Act (No. 88 of
1998) as amended by Act 38 of 2002. SITA is funded from providing services as
stipulated in the service level agreements referred to in the legislation.
Although
the State Information Technology Agency (SITA) does not receive funds from
Budget Vote 12, its budget has been included in National Treasury’s Estimates
of National Expenditure 2011 Budget Vote 12 chapter. SITA plays a pivotal role
in the Integrated Financial Management System, the PERSAL system and the
connectivity of Thusong Services Centres for access to government services.
4. Findings
Some
of the key findings for the Committee were focused on the following:
4.1
Effective recruitment and human resource
development practices
The
Department undertook to conduct an analysis of organisational and senior
management service skills gaps in 46 government departments.
4.2 Update or replacement
of the PERSAL System
Clarity
was sought on the Integrated Financial Management System (IFMS) PERSAL system,
in order to have the correct and updated information on the vacancy rate in the
Public Service; both funded and unfunded posts.
4.3
Report on Delivery
Agreements the Executive signed with the President on delivery of mandates
Collaboration of the DPSA
and the Ministry for Performance Monitoring and Evaluation to give a
Government-wide report on progress by Ministries to deliver on their signed
agreements with the President would be desirable, to determine whether
Ministries were still on track regarding their agreements. It is understandable
that they report to the President with whom they signed; but Parliament is
within its oversight rights to determine the track record so far.
4.4
Citizen engagement and
participation to speed up service delivery
The
Department should report back to Parliament on the feedback and findings
regarding this proposed engagement with the citizens. This could allow
Parliament to engage Government on strategies to minimise civil boycotts and
unrests.
4.5 Effectively tackling corruption
The
Department promised to improve information technology security systems in order
to effectively lower the levels of corruption in the Public Service. The
Department also plans to reduce transgressions related to financial systems and
security risks to government systems by developing and implementing a
vulnerability assessment programme.
4.6 The Public Service Commission (PSC) Budget Vote
The
Portfolio Committee has noted with extreme regret that the PSC budget is no
longer a stand-alone budget vote as in the past. The Portfolio Committee’s
understanding is that the budget of the Commission was rendered a vote on its
own because this institution is independent and autonomous. It reports to
Parliament regarding its function and operation. It never accounts to the
Department. This matter should be further pursued with a view to reversing it
to the previous status quo.
4.7
Integrating gender equity
measures into Government’s Programme of Action
As at June
2007 disability representation was 0.2% in the Public Service. It was
regrettable that the Public Service has paid lip service to this policy matter.
It is high time that the Public Service devoted its urgent attention to this
issue. The Portfolio Committee is aware that Cabinet reviewed the target date
to address gender and disability issues and extended it to March 2010. But this
target date has come and gone and the Committee is of the view that these
targets have not been met, yet again.
5. Analysis of Section 32 Expenditure Reports
5.1 Expenditure information
The Department of Public Service
and Administration has successively incurred under-expenditure over the past
five financial years. The least recorded spending of only 93.6% (i.e. R645.9
million against a budget of R690.2 million) was incurred in 2011/12 and
resulted in an under-expenditure of R44.2 million. Under-expenditure was mainly
due to the following:
5.2 Irregular, fruitless, wasteful
and unauthorised expenditure 1
Irregular expenditure increased steadily
from R2 million in 2007/08 to R10.8 million in 2010/11 as a result of supply
chain management irregularities relating to uncompetitive or unfair procurement
processes and inadequate contract management.
Over the period under review, the Department incurred irregular
expenditure amounting to R22.2 million, and fruitless and wasteful expenditure
amounting to R525 000. The following graph will show how this phenomenon
reflected at the Department of Public Service and Administration:
5.3 Assessment of Unbalanced
Expenditure Trends
The Department of Public Service
and Administration is one of the slowest spending departments with an average
third quarter expenditure of 65.21%; and 95.16% at the end of the fourth
quarter. Figure 13 shows that although the Department under-spent by 6.4% in
the 2011/12 financial year, it still incurred over-expenditure in some areas.
5.4 Third and Fourth Quarter
Expenditure
The
Department of Public Service and Administration (DPSA) was allocated an amount
of R429.8 million in the 2009/10 financial year 2 which is 0.1% of the main
budget. This takes into account the adjustment made by the Department during
adjustment period in the same year. The Department only spent R417.1 million or
97% at the end of 2009/10 which is R12.7 million or 2.9% under-spending of the
total budget. The major under-expenditure emanated from the transfer payments
where the Department only spent 63.8% at the end of the 2009/10 financial year.
The
Department was allocated an amount of R659 million in the 2010/11 financial year, of
which R628 million or 95.4% was spent at the end of the fourth quarter. The
Department had under-spent by R30.5 million, or 4.6% of the budget. A
significant amount of this under-spending occurred in programmes 3 and 4, which
spent 86% and 85% of their adjusted budgets, respectively. In terms of economic
classification, under-spending was notable under goods and services (R24.485
million) which was due to delays in departmental receipts.
The
Department was allocated an amount of R690 million in the 2011/12 financial year, of
which R125 million or 18.1% was spent at the end of the first quarter. The
Department had spent far less than the general expenditure benchmark of 25%
expenditure for the first quarter. It is important to note that most of the
economic classification categories had reported under-expenditure in the first
quarter, with the exception being Payment for Capital Assets (CAPEX), which
registered extremely high over-expenditure in this regard.
6. Report on Performance Indicators
6.1 The Department’s performance targets over the review period
Increasing to 100% the number of senior
managers who sign performance agreements and developing qualitative measures to
assess the quality of performance agreements.
Aligning all individual
performances to that of the organisation being served.
Measuring and improving
the period it takes to fill a vacancy from the usual 16 months to 3 months and
to reduce the vacancy rate from 11% to 5%.
Developing a method to
measure vacant funded posts as against desired and unfunded posts and
reflecting these efficiently in the Integrated Financial Management System
(IFMS).
Conducting service user-satisfaction
surveys to assess the level of satisfaction with Government services amongst
citizens.
Developing a responsive
Public Service by enabling departments to set maximum distances to be travelled
by citizens to obtain access to services.
Increasing the capacity
of the Public Service to effectively tackle corruption by utilising effectively
the Public Sector Anti-Corruption Unit (PSACU).
So far, the Department
does not need additional performance measures. The delivery outputs are easily
measurable through the performance targets. The Department reports annually on
its performance. The reports can be verified through the PSC’s State of the
Public Service Report, the Auditor-General’s Report on financial performance
and briefings to the Portfolio Committee. Whenever the Portfolio Committee has
issues to take up with the Department, the Department always responds
accordingly
7. Programme Performance: Successes and Challenges
7.1 Successes
Since the
Annual Reports, including those of entities, have not been tabled, it is
difficult to make this assessment for the 2011/12 financial year. However, for
the 2010/11 financial year the following can be reported: 5
Programme 1:
Administration
The Department was able
to table its 2010-2014 Strategic Plan and its revised Strategic Plan for
2011/12 on 09 March 2011 in Parliament. It also managed to develop its Annual
Performance Plan (APP) and align it with the Delivery Agreement for Outcome 12.
The seven outputs in the Delivery Agreement for Outcome 12 are:
The first
progress report on the implementation of the Delivery Agreement for Outcome 12
was presented to the Cabinet Committee on Governance and Administration on 08
March 2011.
Programme
2: Human Resource Management and Development in Government
The purpose
of this programme is to develop and implement an integrated strategy to monitor
employment practices, conduct human resource planning and diversity management
and to improve the health and well-being of public service employees.
Regarding
the Information Management System (IFMS), the Department, developed and
completed the Human Resource Generic Template and has implemented the Human
Resource Solution. The Department provided technical support to PALAMA to
assist in the development of the Human Resource Management and Development
training programmes to be implemented within the Public Service with effect
from 2012. The Department also extended its support to the Administrator of
PSETA. Technical support was provided to the Department of Performance Monitoring
and Evaluation (DPME) towards the development of an Institutional Performance
Assessment Tool (PAT) which will be used to assess the performance of heads of
department (HoDs) in corporate services management.
The
Department finalised a report on organisational skills requirements and Senior
Management Service (SMS) skills gaps for 40 departments and it has been signed
off by the Director-General. But the Department has reported that it could not
complete the following activities as they were dependent on the outcome of the
same report on the analysis of organisational and SMS members’ skills gaps:
Policy on mandatory programmes.
Training of Public Service employees
in mandatory training programmes where 25% of identified public servants would
have completed mandatory programmes by the end of 2011.
Determination of the average annual
training days per public servant; and the policies and guidelines for compulsory
SMS capacity development programmes.
The
Department could not complete the revision of the SMS Handbook aligned to new
Regulations due to the DPSA Governance Branch not finalising the Ethics and
Integrity Framework.
A draft policy document on Reasonable
Accommodation and Assistive Devices was completed following extensive
consultations with departments. The Minister approved the Employment Equity
Guide for the Public Service. The
national targets of 50% women and 2% of persons with disabilities in senior
management have not been achieved since 2005. Presently, only 34%
representation of women and 0.22% for persons with disabilities have been
achieved.
Programme
3: Labour Relations and Compensation Management in Government
The purpose
of the programme is to develop and implement compensation policies and
guidelines for the public sector. It also ensures coordinated bargaining and
effective programme management for the establishment of the single public
service.
All
occupation specific dispensations (OSDs) were finalised, except the one for
Medical and Therapeutic Services, which was supposed to be finalised by April
2011. OSD for engineer occupations were implemented in 80% of departments. In
July 2010, the Department commissioned the review of the housing allowance and
policy in order to formalise an investigative study on the development of a
pension secured housing finance scheme.
The Department was not able to conclude
the multi-term agreement on wage increases for the Public Service for 2010/11
and 2011/12 financial years due to ongoing consultations with labour unions, as
a result, only a single term agreement for 2010/11 was signed. Late in August
2011, the 2011/12 agreement was finally signed.
Programme
4: Information and Technology Management in Government
The purpose
of this programme is to ensure the effective use of information technology (IT)
in Government and to facilitate the use of information technology for
modernizing Government. It also establishes e-government practices within an
acceptable information security environment.
The
Department developed a blueprint for a government-wide security policy which
will be integrated across departments and spheres of Government. The Department
optimized the IT infrastructure project for the Nama Khoi municipality, a
project funded by the same municipality. This will help improve the facility
for payment of services which had been hindered by slow IT systems in the past.
The model can be replicated at other municipalities of a similar profile and
rural nature.
The draft Security Governance Framework
has been completed. The Department had consulted with stakeholders such as the
Government Information Technology Officers Council (GITOC) Standing Committee
on Information System Security (SCISS) and the Department of State Security was
briefed through workshops and presentations. The development and adoption of
the IT Security policy could not be completed by the end of 2011 because the
department is experiencing internal human resource constraints. The Public Key
Infrastructure (PKI) strategy for the Public Service could not be achieved
because the Department of State Security wanted to be fully involved; and this
meant that DPSA should adjust its deliverables on the project.
The renewal
of all expiring transversal tenders could not be completed as a result of
limited resources within SITA procurement processes. The CEO of SITA was made
aware of this challenge. IT Vulnerability Assessments in the Public Service
could not be done across the board, but was successful only in one national
department. This was caused by the delays in the planning process and
discussions which took longer than expected. Also, this is caused by the fact
that technical human resources and other resources are only allocated on an ad
hoc basis.
The
Department facilitated the connectivity of 100 Thusong Service Centres to the
Local Area Network (LAN) and 60 centres were connected to the Wide Area Network
(WAN).
Programme
5: Service Delivery Improvement throughout Government
The purpose
of this programme is to engage in supportive interventions and partnerships to
improve efficiency and effectiveness. It also improves on learning- and
knowledge-based modes and practices of service delivery in the Public Service.
The
Department trained 500 practitioners on the roll out of service delivery
improvement plans through the Batho Pele change-management engagement
programme. A concept document on National Knowledge Management Framework was developed,
which resulted in a consultative workshop held in November 2010. The Department
also developed and completed a concept document on the development of generic
structures including organizational development (OD). To this effect,
consultative workshops were held with the Departments of Health; Social
Development, Education and Offices of the Premier.
In
collaboration with PALAMA, the Department developed training modules for the
capacitation of organisational development practitioners and the piloting of
the training programme was scheduled for April 2011. The Department is in the
process of creating an enabling environment for the Community Development
Workers (CDWs) by drafting regulations for approval by the Minister. After this
process, the CDW policy will be developed.
The
Department was unable to conduct change readiness assessments regarding
institutions and departments that would be impacted by the Single/Integrated Public
Service concept or legislation. According to the Department, they are awaiting
the Finalisation of the Public Administration and Management Bill in
Parliament. As a result of this delay, the Department resorted to developing a
draft strategy framework on managing change in the Public Service. By December
2010, the Minister announced that the Department will be introducing the
amendment to existing legislation instead of introducing new legislation. The
draft Public Service Amendment Bill will soon be submitted to Cabinet for
approval, after which it will go to NEDLAC and other stakeholders for further
discussions.
Programme 6: Governance and
International Relations
The
Department drives this programme to improve governance and public
administration for enhanced service delivery in
7.2 Challenges
There are still discrepancies in
the filling of vacancies. The period to deal with vacancies is still taking
longer than desired. Although there was improvement from the usual 16 months to
9 months, and from 9 months to 6 months, the target of 4 months has still not
been attained.
The signing of performance
contracts is still not at 100% as targeted for the period under review.
Corruption is still manifesting
widely in the procurement systems of the entire Public Service, to such an
extent that some provincial departments were put under administration during
the review period.
Payment of service providers within
30 days has not fully manifested in the Public Service. But the Department
itself has improved in this regard. Only 28 out the 39 national departments
complied with this requirement. Eight provinces submitted exception reports to
National Treasury as they failed to comply.
The turnaround time to finalise
disciplinary cases has not improved.
Disclosures of financial interests
by the senior management have not improved to 100% as was targeted. The
disclosures are now at 72%.
There is a dire lack of compliance
regarding the Service Delivery Improvement Plans (SDIPs). Currently there is
9.1% and 13% compliance respectively for national and provincial departments.
8.
Interventions required
The Department writes formal
letters to other departments to comply with issues raised above.
For the Department to deliver
services more efficiently and effectively regarding the above-mentioned issues,
it should escalate these issues to the Forum of South African Directors-General
(FOSAD). It would be prudent for the Director-General of Public Service and
Administration to escalate these matters to the Executive Authority (EA) so that
she can raise these issues with her colleagues in the Executive.
9.
Liaison with entities
9.1 Service delivery challenges at PALAMA
In the
2011/12 financial year PALAMA had taken an average of 90 days to collect debt
for training fees outstanding from its clients. PALAMA had planned to take an
average of 70 days as from 01 April 2012 to 31 March 2013 and 60 days for
2013/14 financial year to fulfil this requirement, so that processes are in
line with projected cash-flows. It is not presently possible to determine
success in this regard, since the Annual Report has not been tabled yet.
10. Virements and Shifting of Funds from and to, within and between
Programmes during the Adjustment Period in line with the Legislative Framework
(PFMA)
Though section 43 of the Public
Finance Management Act (No 1. of 1999)[1]
makes provision for virements and the shifting of funds from one programme to
another, as well as movement of funds within the programme, there are certain
requirements that need to be met by an accounting officer. These conditions are
as follows:
Section 43 (2) of the Public Finance
Management Act provides that “the amount of a saving under a main division of a
vote that may be utilised in terms of (1) may not exceed 8% of the amount
appropriated under that main division.”[2]
Moreover section 43 (4) states that this section does not authorise the
utilisation of a saving if:
(a) An amount is specifically and
exclusively appropriated for a purpose mentioned under a main division within a
vote;
(b) An amount is appropriated for
transfers to another institutions; and
(c) An amount is appropriated for
capital expenditure to defray current expenditure.
10.1 The First Quarter Expenditure Report for Financial Year 2011/12
10.1.1 The Overall Departmental
Allocations and Expenditures 2011/12
The Department of Public Service and
Administration (DPSA) was allocated an amount of R690 million in the 2011/12
financial year, of which R125 million or 18.1% has been spent at the end of the
first quarter. The Department has spent far less than the general expenditure
benchmark of 25% expenditure for the first quarter. It’s important to note that
most of the economic classification categories have reported under-expenditure
in the first quarter, the exception being Payment for Capital Assets (CAPEX),
which registered extremely high over-expenditure in this regard. The
under-expenditure in the first quarter emanated from the following departmental
programmes:[3]
10.1.2 Administration: This Programme was allocated R165.2
million for the 2011/12 period and spent R37 million or 22.4% at the end of the
first quarter. This is below the general benchmark of 25% per quarter. The
under-expenditure was due to the reduced travelling costs during the first
three months.
10.1.3 Human Resources Management and Development in Government:
Programme 2 was allocated a total amount of R33.9 million and only spent R7.4
million or 22% at the end of the first quarter of the 2011/12 financial year.
The expenditure is still below 25% benchmark. The under-expenditure was
attributed to the following:
·
The Department has made some savings due to
the reduction in costs of travelling in the first three months.
·
The salary increase was projected to be
effected from May 2011 onwards. This is indeed reflected under goods and
services of this programme.
10.1.4 Labour Relations and Compensation Management in Government:
Programme 3 was allocated a total amount of R23.2 million and only spent R3.8
million or 16.4% in the first three months. The under-expenditure was due to
the delays in finalising the appointment of the service provider to conduct
Health Risk Management Audit DPSA. The major part of the under-expenditure was
reported under goods and services of this programme.
10.1.5 Information and Technology Management in Government:
Programme 4 was allocated a total budget of R40.8 million and only spent R3.9
million or 9.7% of its budget. The under-expenditure was due to the following
reasons:
·
The resignation of three senior staff
members, which resulted in unfilled vacancies.
·
The outstanding and unpaid invoices for
State Information Technology Agency (SITA), for the Thusong Centres.
10.1.6 Service Delivery Improvement throughout Government:
Programme 5 was allocated a total amount of R204.8 million and only spent R27
million or 13.2% at the end of the first quarter of the 2011/12 financial year.
The under-expenditure was mostly reported under transfers and subsidies of this
programme. Of this amount, only R12 million or 10.1% was transferred to PALAMA
and R3.9 million or 18.6% to PSETA. Since transfers and subsidies account for
the biggest share of this programme’s budget, under-expenditure in this regard
compromised the whole programme.
10.1.7 Governance and International Relations: Programme
6 was allocated a total amount of R221.8 million for 2011/12. At the end of the
first quarter, the Department only spent R45.7 million or 20.6% of the
allocation. The under-expenditure was due to the following areas:
·
Delays in the development of the web page
for the African Peer Review Mechanism
·
Delays in making payments to the State
Information Technology Agency (SITA).
10.8 Roll-overs of
the Unspent Funds to the 2011/12 Financial Year
The level of
under-spending in the above section is an indication that the Department might
apply for roll-overs to the National Treasury for the 2011/12 financial year.
Depending on the circumstances, certain roll-overs will be approved by the
National Treasury, whilst others will never be approved. Looking at Table 1 below, R1 350 million
rollovers were requested at the end of the 2010/11 financial year and was
approved by National Treasury.
Table 1: Approved Roll-overs for the Department
|
R Thousand |
Requested |
Approved |
|
Department of Public Service and Administration |
1 350 |
1 350 |
|
Human
Resource Connect project |
860 |
860 |
|
COBIT
Training |
490 |
490 |
|
Total |
1 350 |
1 350 |
Source: DPSA (2011)
11. Consideration of Reports of Committee on Public
Accounts
The Department did
not appear before the Committee on Public Accounts. The Department did not
apply any SCOPA Resolutions.
12. Conclusion
The
trends reflect that the Department annually continues to under-spend from the
First to the Third Quarter, with the exception of the Fourth Quarter, where the
expenditure rate goes up. It is noted also that there is usually overspending
annually on the Labour Relations and Remuneration Programme due to negotiations,
which are usually protracted, on salary and employment conditions.
13. Recommendations
Conclusion:
The
Portfolio Committee should ask for a briefing from the Department regarding
remedial measures to be taken to address non-compliance with submission of
Service Delivery Improvement Plans (SDIPs) by the two tiers of Government.
The
Portfolio Committee appreciates the fact that the Director-General has played
an important role in being a good resource and a link between the Portfolio
Committee, the Department and the PSC presently as the Director-General of the
Department and previously of the Office of the PSC.
Report to be considered.