1. PRESENTATION TO THE STANDING COMMITTEE ON APPROPRIATIONS COMMENT ON THE 2016 APPROPRIATION BILL 11 MAY 2016

2. Introduction The PSC is established in terms of Chapter 10 of the Constitution. It derives its mandate from sections 195 and 196 of the Constitution, 1996, which sets out the values and principles governing public administration which should be promoted by the PSC, as well as the powers and functions of the PSC. It is vested with custodial oversight responsibilities for the Public Service and monitors, evaluates and investigates public administration practices.

3. Introduction (2) The PSC has been requested to present on the following – Discuss the budgets versus performance for national departments Identify areas where efficiencies may be realised Identify opportunities with potential for value for money Discuss issues of governance across the public service; and Any other matter that may assist the work of the Committee in considering the 2016 Appropriation Bill Data used- Annual reports for the 2011/12, 2012/13, 2013/14 and 2014/15 FYs Other data available, e.g. PSC database and research (factsheets), National Treasury, AG South Africa, DPME (MPAT) and Vulindlela. 3

4. Introduction (3) 4 The PSC does not have comprehensive research on all theareas mentioned above. The comments should be viewedwith this limitation in mind. Nevertheless, the PSC is in the process of building a datasourcing and analytical capability with the 9 valuesgoverning public administration as frame, and this enables itto give some comment. Government’s spending plans remains focused on achievingthe objectives of the MTSF, seen as the vehicle to drive theimplementation of and the achievement of the NDP goals. The priorities highlighted in the Budget remain education,health, local development and social infrastructure, andeconomic development. However, this presentation does not comment on thisprioritisation. The PSC does not have comprehensive research on all theareas mentioned above. The comments should be viewedwith this limitation in mind. Nevertheless, the PSC is in the process of building a datasourcing and analytical capability with the 9 valuesgoverning public administration as frame, and this enables itto give some comment. Government’s spending plans remains focused on achievingthe objectives of the MTSF, seen as the vehicle to drive theimplementation of and the achievement of the NDP goals. The priorities highlighted in the Budget remain education,health, local development and social infrastructure, andeconomic development. However, this presentation does not comment on thisprioritisation.

5. Performance vs. Expenditure 0% - 60%61% - 89%90% and above DEPARTMENTPROGRAMME(S) 2012/132013/142014/15 % Achieved% Spend%Achieved% Spend%Achieved% Spend Agriculture, Forestry and Fisheries Prog 1- Administration41.4%98.0%71.4%96.7%73.3%97.3% Prog 2- Agricultural Production, Health & Food Safety57.1%100.0%66.7%99.5%100.0%99.6% Prog 3-Food Security & Agrarian Reform66.7%99.1%75.0%99.1%50.0%98.0% Prog 4-Economic Development,Trade & Marketing50.0%99.8%77.8%100.0%81.8%99.9% Prog 5-Forestry and Natural Resource Management41.4%97.6%80.0%98.0%80.0%100.0% Prog 6-Fisheries Management 48.1%100.0% 87.5%100.0% Totals49.3%99.1%76.2%98.9%80.0%99.1% Arts and cultureProg 1 Administration61.9%99.7%56.4%100.0%53.6%95.1% Prog 2 Performing Arts41.7%99.2%75.0%95.0%80.8%96.3% Prog 3 National Language Services100.0%99.8%82.4%100.0%80.0%99.7% Prog 4 Cultural Development52.2%96.8%70.7%99.6% Cultural Dev with Arts Culture Promotion Prog 5 Heritage Promotion40.5%99.6%50.0%88.3%64.0%97.6% Prog 6 National Archives and Libraries39.2%99.7%100.0%96.2% National Archives with Heritage Promotion Totals51.1%99.4%66.9%94.5%69.7%97.9% Basic EducationProg 1 Administration100.0%98.3%85.7%99.9%100.0%99.3% Prog 2 Curriculum Policy, Support & Monitoring65.2%98.7%71.4%99.9%60.0%92.2% Prog 3 Teacher Education HR and Institutional Development66.7%95.0%25.0%99.9%100.0%100.5% Prog 4 Planning Information & Assessment50.0%84.9%92.9%93.8%78.6%100.0% Prog 5 Education Enrichment Services66.7%99.6%60.0%99.2%100.0%99.6% Totals66.7%91.9%70.9%96.5%83.9%99.2% Civilian Secretariat for Police Prog 1 Administration71.7%42.7%97.1%77.3%100.0%98.8% Prog 2 Partnerships38.5%82.9%100.0%63.4% New Programmes Prog 3 Policy and Research52.0%60.3%92.9%86.4% Prog 4 Legislation50.0%66.9%100.0%62.4% Prog 5 Monitoring and Evaluation56.3%126.1%100.0%64.9% Prog 2 Inter-sectoral Coordination & Strategic Partnership New Programmes 92.3%100.0% Prog 3 Legislation and Policy Development66.7%72.7% Prog 4 Civilian Oversight, Monitoring and Evaluation66.7%79.6% Totals59.0%66.61%97.6%71.9%85.7%91.9%

6. Performance vs. Expenditure 0% - 60%61% - 89%90% and above DEPARTMENTPROGRAMME(S) 2012/132013/142014/15 % Achieved% Spend%Achieved% Spend%Achieved% Spend CommunicationsProg 1 Administration87.5%100.0%0.0%99.2% Department changed to GCIS Prog 2 International Affairs75.0%92.3%75.0%112.9% Prog 3 ICT Policy, Research & Capacity Development90.9%99.9%100.0%99.8% Prog 4 Broadcasting, & Com. Regulation & Support50.0%100.0% 98.9% Prog 5 ICT Infrastructure Support28.6%100.0%80.0%100.0% Totals71.9%99.8%82.1%99.6% Government Communication and Information System Prog 1 Administration Previously Communications 100.0%100.4% Prog 2 Content Processing and Dissemination95.2%98.7% Prog 3 Intergovernmental Coordination & Stakeholder Management 100.0% Prog 4 Communication Service Agency100.0% Totals98.5%99.9% Cooperative Governance & Traditional Affairs (COGTA) Prog 1 Administration88.9%89.2%93.3%99.8%50.0%99.8% Prog 2 Policy, Research & Knowledge Management100.0%98.1%100.0%98.6%100.0%91.2% Prog 3 Governance & Intergovernmental Relations83.3%98.1%100.0%96.0%100.0%93.5% Prog 4 Disaster Response Management100.0%20.5%100.0%61.0%100.0%46.4% Prog 5 Prov & Mun Gov Systems100.0%99.9%100.0% Prog 6 Infrastructure & Economic Development100.0%98.6%100.0%99.1%100.0%96.4% Prog 7 – Traditional Affairs 100.0%99.6%96.4%100.0% Programme Discontinued 100.0% Totals94.6%96.0%97.5%97.7%95.7%93.7% Correctional ServicesProg 1 Administration53.1%97.6%77.8%100.0%27.3%99.4% Prog 2 Incarceration25.0%99.8%30.0%100.0%54.5%99.3% Prog 3 Rehabilitation50.0%87.0%62.5%95.2%100.0%91.9% Prog 4 Care100.0%96.8%100.0% Prog 5 Social Reintegration44.4%90.4%66.7%100.0% Totals46.1%97.8%63.4%99.7%65.8%99.0% DefenceProg 1 Administration75.5%99.9%69.6%100.0%76.9%100.0% Prog 2 Force Employment69.2%99.2%57.1%95.0%64.3%100.0% Prog3 Landward Defence78.3%100.0%0.0%100.0%66.7%99.9% Prog 4 Air Defence92.9%100.0%0.0%100.0%0.0%100.0%

7. Performance vs. Expenditure 0% - 60%61% - 89%90% and above DEPARTMENTPROGRAMME(S) 2012/132013/142014/15 % Achieved% Spend%Achieved% Spend%Achieved% Spend DefenceProg5 Maritime Defence71.4%100.0%0.0%99.2%100.0% Prog 6 Military Health Support73.3%100.0% 99.8%100.0% Prog 7 Defence Intelligence100.0% Prog 8 General Support75.0%96.7%69.2%100.0%50.0%100.0% Totals76.2%99.5%67.7%99.5%73.5%100.0% Economic DevProg 1 Administration80.0%88.0%80.0%100.0% 99.3% Prog 2 Economic Development100.0%60.3%100.0% 99.5% Prog 3 Economic Planning & Coordination100.0%99.3%100.0% 99.8% Prog 4 Econ Dev & Social Dialogue100.0%71.5%100.0%99.8%100.0%98.1% Totals97.7%96.7%97.4%100.0% 99.7% EnergyProg 1.Administration82.7%92.8%71.4%99.7%57.1%98.7% Prog 2.Energy Policy and Planning33.3%98.8%25.0%99.5%25.0%78.7% Prog 3.Energy Regulations (Programme Management)31.3%100.0%50.0%99.8%20.0%82.5% Prog 4.Nuclear Energy Regulation15.4%99.4%33.3%99.8%33.3%99.9% Prog 5.Clean Energy45.7%100.0%80.0%100.0%0.0%41.9% Prog 6.Energy Programmes and Projects25.0%98.9%50.0%64.8%20.0%99.1% Totals50.0%99.0%46.7%99.6%28.6%83.6% Environmental Affairs Prog 1 Administration93.8%98.2%100.0%99.7%98.1%100.0% Prog 2 Legal, Authorisations & Compliance100.0% 98.7%100.0%98.5% Prog 3 Oceans & Coasts100.0% 99.8%100.0% Prog 4 Climate Change & Air Quality100.0%97.1%100.0% Prog 5 Biodiversity & Conservation97.1%100.0% Prog 6 Environmental Programmes100.0%92.7%100.0% 99.9% Prog 7 Chemicals & Waste Management New programme100.0%98.2%100.0% Totals97.2%95.5%100.0%99.9%99.4%99.9% HealthProg 1 Administration and Corporate Services: Administration 2013/1450.0%97.0%77.8%89.8%80.0%97.2% Prog 2 National Health Insurance, Health Planning and System Enablement80.0%96.5%73.7%40.1%73.7%48.4% Prog 3 HIV & AIDS, TB, maternal Child & Women Health. HIV & AIDS, TB & Maternal, Child & Women's Health 50.0%99.3%33.3%99.3%48.4%99.9% Prog 4 Primary Health Care Services57.9%92.6%48.4%87.4%69.6%95.5% Prog 5 Hospitals, Tertiary Services & Workforce Development. Changed to Hospitals, Tertiary Services & Human Resource Development.41.7%99.6%41.2%98.6%57.1%98.3% Totals 54.9%99.4%51.0%97.7%63.3%97.9%

8. Performance vs. Expenditure 0% - 60%61% - 89%90% and above DEPARTMENTPROGRAMME(S) 2012/132013/142014/15 % Achieved% Spend%Achieved% Spend%Achieved% Spend International Relations and Cooperation Prog 1 Administration60.9%95.0%59.1%95.4%63.6%92.7% Prog 2 International Relations and Cooperation. Changed to International Relations in 2013/2014.77.5%99.1%66.7%104.8%33.3%99.9% Prog 3 International CooperationNew Programme63.5%99.9%91.4%100.0% Prog 4 Public Diplomacy and State Protocol. Changed to Diplomacy and Protocol Services in 2013/2014.100.0%99.5%100.0%107.7%95.8%96.3% Prog 5 International Transfers0.0%99.9%100.0%102.7%0.0%100.0% Totals72.9%98.4%65.2%102.0%81.1%98.2% Justice and Constitutional Development Prog 1 Administration60.9%100.0%90.5%100.0%90.0%99.2% Prog 2 Court Services30.8%100.0%90.9%93.8%92.3%98.2% Prog 3 State Legal Services33.3%100.0%87.0%100.0%84.6%100.0% Prog 4 National Prosecuting Authority40.0%100.0%64.3%100.0%75.9%100.0% Prog 5 Auxiliary and Associated Services 0%100.0%0% 95.6%100.0%95.5% Totals42.3%100.0%83.2%96.7%84.8%98.3% LabourProg 1 Administration57.6%89.9%66.7%94.7%44.4%88.4% Prog 2 Inspection & Enforcement Services35.7%98.8%70.6%96.6%42.9%99.6% Prog 3 Public Employment Services57.1%99.2%71.4%100.0%44.4%96.6% Prog 4 Labour Policy & Industrial Relations88.9%96.8%70.8%98.1%66.7%97.7% Totals63.6%95.1%69.5%97.0%50.0%95.0% Military VeteransProg 1 Administration The Department was established in 2013/2014 52.4%54.0%71.4%90.2% Prog 2 Socio Economic Support Services9.1%44.8%20.0%96.1% Prog 3 Empowerment and Stakeholder Management22.2%39.0%33.3%80.0% Totals 32.0%47.2%52.0%91.7% Mineral ResourcesProg 1 Administration83.6%100.0%90.0%99.5%93.3%99.9% Prog 2 Promotion of Mine Safety & Health88.6%99.4%88.9%99.5%95.5%100.0% Prog 3 Mineral Regulation78.1%99.9%91.2%100.0% Prog 4 Mineral Policy & Promotion96.2%100.0%86.7%99.4%95.2%100.0% Totals85.6%99.9%89.3%99.5%95.7%100.0% National School of Governance Prog 1 Administration48.3%97.9%63.6%99.6%63.0%94.4% Prog 2 Public Sector Organisational & Staff Development70.0%100.0%73.3%100.0%59.5%100.0% Totals57.1%98.8%68.0%99.8%61.4%96.7%

9. Performance vs. Expenditure 0% - 60%61% - 89%90% and above DEPARTMENTPROGRAMME(S) 2012/132013/142014/15 % Achieved% Spend%Achieved% Spend%Achieved% Spend National TreasuryProg 1 Administration34.8%92.8%60.0%95.5%75.0%97.4% Prog 2 Economic Policy, Tax, Fin Reg & Research69.2%90.8%20.0%92.7%100.0%92.5% Prog 3 Pub Fin & Budget Management75.6%91.6%12.0%94.3%78.4%94.4% Prog 4 Asset & Liability Management82.1%98.4%60.5%99.9%61.1%92.4% Prog 5 Financial Systems & Accounting46.4%93.2%47.5%96.6%39.5%95.0% Prog 6 International Financial Relations60.0%96.3%42.9%97.6%50.0%99.9% Prog 7 Civil & Military Pensions, Contributions to Funds & Other Benefits41.7%99.8%80.0%100.0%60.0%100.0% Prog 8 Technical Support & Development Finance87.0%99.7%81.6%98.7%63.6%93.7% Prog 9 Revenue Administration - 100.0% - - Prog 10 Financial Intelligence and State Security - 100.0% - - Totals64.2%99.3%49.8%99.5%64.3%98.0% Office of the Public Service Commission Prog 1 Administration89.0%100.00%80.0%100.0%71.0%99.80% Prog 2 Leadership & Management Practices45.0%99.96%63.0%99.7%93.0%99.98% Prog 3 Monitoring & Evaluation46.0%99.87%74.0%99.9%82.0%99.99% Prog 4 Integrity & Anti-Corruption54.0%99.99%58.0%99.9%73.0%100.00% Totals 65% 99.97% 73% 99.90% 78% 99.90% Planning, Monitoring and Evaluation in changed 2014/15 Prog 1 Administration81.3%89.9%85.7%100.0%68.8%99.2% Prog 2 Outcomes Monitoring and Evaluation92.9%92.5%55.0%98.6%57.9%94.0% Prog 3 Institutional Performance Monitoring and Evaluation New Programme introduced 2014/15 85.0%98.2% Prog 4 National Planning36.4%80.2% Prog 5 National Youth Development0.0%100.0% Prog 3 Monitoring & Evaluation Coordination & Support - changed after 2012/1378.6%94.2%80.0%99.7% 2012/13 & 2013/14 Programmes Prog 4 Public Sector Oversight- changed after 2012/1394.4%93.4%78.3%100.0% Totals85.9%92.0%74.3%99.5%60.6%96.6%

10. Performance vs. Expenditure 0% - 60%61% - 89%90% and above DEPARTMENTPROGRAMME(S) 2012/132013/142014/15 % Achieved% Spend%Achieved% Spend%Achieved% Spend PoliceProg 1 Administration33.3%100.0%51.4%100.0%66.7%100.0% Prog 2 Visible Policing60.0%100.0%69.6%100.0%80.0%102.7% Prog 3 Detective Services82.6%98.3%69.6%100.0%60.0%100.0% Prog 4 Crime Intelligence100.0% 37.5%100.0% Prog 5 Protection & Security50.0%100.0%83.3%100.0%66.7%100.0% Totals54.3%99.6%61.1%100.0%71.1%101.4% Public EnterprisesProg 1 Administration -98.5%90.5%99.0%64.7%92.8% Prog 2 Legal and Governance86.7%96.9%44.4%98.8%25.0%83.6% Prog 3 Port Man & Strategic Partnerships66.2%99.4%81.1%85.3%68.8%93.5% Totals69.9%99.3%79.5%92.6%65.2%92.4% Public Service and Administration Prog 1 Administration82.4%96.8%100.0%104.4%92.9%91.1% Prog 2 Human Resource Management & Development75.0%95.2%60.0%99.0%60.0%99.9% Prog 3 Labour Relations and Remuneration Management33.3%92.4%83.3%57.3%100.0%70.0% Prog 4 Public Sector Information Communication Technology Management50.0%79.0%75.0%77.3%100.0%52.8% Prog 5 Service Delivery and Organisational Transformation52.4%99.7%79.2%100.0% 98.2% Prog 6 Governance and International Relations38.1%96.8%75.0%99.9%88.9%97.5% Totals60.3%96.8%79.8%97.5%92.9%93.0% Public WorksProg 1 Administration47.5%85.2%75.0%97.0%78.1%99.6% Prog 2 Immovable Asset Investment Management Programme: changed to Immovable Asset Management in 2013/14 & 2014/15 43.6%90.3%31.4%96.4%23.5%97.5% Prog 3 Expanded Public Works Programme: changed to Expanded Public in 2014/15 0.0%98.6%60.0%99.7%66.7%98.9% Prog 4 Construction and Property Policy Regulation: changed to Property and Construction Industry Policy Regulation in 2013/14 & 2014/15 11.1%71.7%40.0%89.3%33.3%91.3% Prog 5 Auxiliary and Associated Services New Programme 91.3%100.0%97.5%100.0% Totals40.2%91.3%54.7%97.5%45.5%98.4%

11. Performance vs. Expenditure 0% - 60%61% - 89%90% and above DEPARTMENTPROGRAMME(S) 2012/132013/142014/15 % Achieved% Spend%Achieved% Spend%Achieved% Spend Rural Development & Land Reform Prog 1 Administration 16.7%99.7%50.0%99.9%16.7%99.8% Prog 2 Geospatial & Cadastral Services 0.0%99.5%50.0%99.8%75.0%99.7% Prog 3 Rural Development 75.0%99.0%78.6%99.8%53.8%97.3% Prog 4 – Restitution 50.0%99.3%100.0% Prog 5 – Land Reform 25.0%99.5%55.6%100.0%30.0%99.8% Totals 34.6% 99.4%65.0%99.9%52.4%99.4% Science & Technology Prog 1 Administration 62.5%99.5%100.0%99.4%88.2%98.1% Prog 2 Research, Development & Innovation - Changed to Technology Innovation in 2014/2015. 86.7%99.7%26.7%99.9%64.3%92.8% Prog 3 International Cooperation and Resources 100.0%99.5%100.0%98.8%100.0% Prog 4 Human Resource Capital and Knowledge Systems: Changed to Research Development and Support in 2014/2015. 54.1%99.1%80.0%99.6%76.9%100.0% Prog 5 Socio Economic Partnerships: Changed to Socio Economic Innovation Partnerships in 2014/2015.80.0%99.8%85.7%99.2%100.0%100.2% Totals68.4%99.5%73.3%99.5%84.6%98.8% Small Business Development Department proclaimed 07 July 2014 Social DevelopmentProg 1 Administration 66.0%99.3%62.3%99.4%67.8%99.8% Prog 2 Social Assistance 50.0%99.1%42.9%98.7%62.5%99.4% Prog 3 Social Security Policy & Admin 0.0%99.8%37.5%100.0%33.3%100.0% Prog 4 Welfare Serv Policy Dev & Implem Support 64.8%95.7%85.2%99.6%67.2%95.5% Prog 5 Social Policy & Integrated Serv Del 42.9%99.5%62.5%96.0%72.1%99.9% Totals 56.8%99.1%68.4%98.8%66.7%99.4% Sport and Recreation Prog 1 Administration67.3%98.1%76.7%99.9%66.7%98.7% Prog 2 Sport & Recr Service Providers20.0%99.2%60.0%100.0% New programmes Prog 3 Mass Participation37.5%99.5%71.4%100.0% Prog 4 International Liaison and Events66.7%99.6%100.0% Prog 5 Facilities Coordination33.3%67.4%50.0%93.8% Prog 2 Active Nation New programmes 100.0%

12. Performance vs. Expenditure 0% - 60%61% - 89%90% and above DEPARTMENTPROGRAMME(S) 2012/132013/142014/15 % Achieved% Spend%Achieved% Spend%Achieved% Spend Sport and Recreation Prog 3 Winning Nation New programmes 100.0%98.4% Prog 4 Sport Support100.0% Prog 5 Infrastructure Support50.0%85.6% Totals50.5%99.2%72.4%100.0%91.3%99.7% Telecommunications and Postal Services Prog 1 Administration Previously Communications 0.0%95.4% Prog 2 ICT International25.0%99.5% Prog 3 ICT Policy and Research21.4%70.2% Prog 4 ICT Enterprise Dev and SOE Oversight0.0%99.9% Prog 5 ICT Infrastructure Development50.0%99.1% Totals24.1%97.5% Stats SAProg 1 Administration40.0%100.0%50.0%98.7%60.0%90.7% Prog 2 Economic Statistics100.0% 83.3%99.9%100.0% Prog 3 Population and Social Statistics57.1%100.0%28.6%99.7%16.7%100.0% Prog 4 Methodology and Standards100.0% 33.3%100.0%50.0%100.0% Prog 5 Statistical Support and Informatics100.0% 50.0%97.6%50.0%100.0% Prog 6 Corporate Relations50.0%100.0%50.0%99.9%50.0%100.0% Prog 7 Survey Operations66.7%100.0%66.7%100.0%75.0%100.0% Totals69.4%100.0%51.4%99.2%59.0%96.2% The PresidencyProg 1 Administration100.0%85.5%90.9%90.7%100.0%93.4% Prog 2 National Planning85.0%80.7%80.0%84.4%100.0%97.5% Prog 3 National Youth Dev Agency100.0% 81.3%94.0%100.0%97.2% Prog 4 Intern Marketing & Communication100.0% 96.3%100.0%93.5% Totals95.6%92.5%87.7%92.0%100.0%94.9% Trade & IndustryProg 1 Administration88.9%99.3%81.8%96.7%90.9%91.9% Prog 2 Intl Trade & Econ Dev100.0%99.7%100.0%95.4%100.0%97.5% Prog 3 Broadening Participation56.3%98.9%94.7%99.4%66.7%99.2% Prog 4 Industrial Development100.0%99.8%100.0%99.1%87.5%99.6% Prog 5 Consumer & Corp Regulation100.0%96.8%75.0%99.4%50.0%99.3% Prog 6 Incentive Dev & Admin50.0%99.2%75.9%98.5%51.9%99.3% Prog 7 Trade & Investment SA100.0%99.5%100.0%99.3%50.0%97.7% Totals66.1%99.2%85.3%98.6%66.7%98.7%

13. Performance vs. Expenditure 0% - 60%61% - 89%90% and above DEPARTMENTPROGRAMME(S) 2012/132013/142014/15 % Achieved% Spend%Achieved% Spend%Achieved% Spend TransportProg 1 Administration98.1%92.0%84.5%94.6%77.8%96.6% Prog 2 Integrated Transport Planning95.6%92.6%43.9%88.6%83.3%100.0% Prog 3 Rail Transport80.0%99.9%60.0%100.0% Prog 4 Road Transport98.0%100.0%61.2%103.9%100.0%101.8% Prog 5 Civil Aviation94.4%84.8%53.2%60.5%84.6%100.0% Prog 6 Maritime Transport100.0%92.0%52.4%98.8%100.0%97.9% Prog 7 Public Transport85.7%98.5%100.0%99.4%83.3%100.0% Totals95.9%99.3%67.8%101.4%87.5%100.8% TourismProg 1 Administration90.5%100.0%83.3%99.7%91.7%97.7% Prog 2 Policy and Knowledge Services98.1%100.0% 99.7%86.7%100.0% Prog 3 International Tourism100.0%93.2%100.0%92.4%90.0%99.8% Prog 4 Domestic Tourism100.0% 81.5%99.7%64.3%94.7% Totals96.9%99.4%90.2%99.5%84.1%98.4% Water Affairs - Department changed to Water Sanitation (2014/15) Prog 1 Administration61.5%97.5%81.3%99.0%55.6%92.9% Prog 2 Water Sector Management23.5%99.8%62.5%99.2%75.0%93.0% Prog 3 Water Infrastructure Management-100.0%-99.8%27.8%100.0% Prog 4 Regional Implementation & Support63.2%94.0%60.7%98.5%45.2%79.1% Prog 5 Water Sector Regulation80.0%86.4%73.7%84.9%53.3%79.4% Prog 6 International Water Cooperation0.0%93.8%85.7%99.7%62.5%95.9% Totals48.3%96.1%68.4%98.8%52.4%84.7% Women, Children & People with disabilities Prog 1 Administration71.8%94.0%76.9%91.8%63.6%97.7% Prog 2 Women Empowerment & Gender Equality82.4%97.7%100.0%99.0%0.0%99.7% Prog 3 Children's Right and Responsibilities92.9%70.7%90.9%98.6%0.0%96.1% Prog 4 Rights of People with Disabilities31.3%86.0%40.0%81.4%Programme Moved to Social Development Prog 5 Monitoring, Evaluation and Outreach (Prog 4- 2014/15) New Programme 14.3%93.5% Totals70.3%93.3%82.1%94.5%36.4%98.3%

14. Performance vs. Expenditure (2) The 2014/15 FY reflects several amendments made to programmes and introduction of new programmes within departments, including movements of programmes from one department to another department. This does affect the trend of performance information overall and in particular impacts the measurement of improvements in 2014/15. It appears that departments are generally not achieving the planned targets whilst incurring high expenditure. This could imply that the allocated budget is being utilised for unplanned activities. However, this could also be attributed to the changes incurred; merger of departments and movements of programmes between departments. During the 2014/15 FY, the following departments achieved below 50% of the planned targets: Department% Achieved% Expenditure Energy 28.6%83.6% Public Works42.4%98.4% Telecommunications and Postal Services24.1%97.5% Women Children and People with Disabilities 36.4%99.0%

15. 15 The 2014 results suggest that MPAT has succeeded in facilitating not only a focus on management compliance but also slow and incremental improvement in performance. Management Performance Assessment Tool (MPAT)

16. 16 Some significant findings from MPAT 24% of national and provincial departments’ scores per standard are compliant (at least level 3) of which 26% are at level 4 (50% overall). Although KPA 1 (Strategic Management) reflects a high compliance score (level 3), this area has not improved over the years like the other KPAs, which could be attributed to the fact that the other KPAs are more regulated. KPA 2 (Governance and Accountability) does show a notable improvement but still reflects a partially compliant score with legal/regulatory requirements. –Of concern for this area is the decline in professional ethics which suggests a need for ensuring consequences for transgressions. The stagnation of KPA 3 (Human Resource Management) is concerning as HRM consistently falls below the required ‘fully competent’ level at a score of 2.3. –Areas that still need attention are organisation design, human resource planning, recruitment, and Heads of Departments (HoD) PMDS. –It is essential fro organisational design, governance, workflow and human resource deployment should be aligned; resources are not always necessarily the issue but how they are mobilised and deployed is. MPAT Scores (2)

17. 17 KPA 4 (Financial Management) is showing a marginal improvement and whilst challenges still persist the improvements show what is possible. Some of the challenges that remain critical are the payment of suppliers within 30 days, service delivery mechanisms and the finalisation of disciplinary cases. –This continuing non-payment of service providers is having a negative impact on government’s stated objective of fighting unemployment. Whilst many departments are complying with the requirements of National Treasury's Instruction Note 34 of 2011 by submitting exception reports to treasuries and having an invoice tracking system in place, many more departments do not pay within the stipulated timeframe, resulting in a level 2 score. Furthermore, sufficient attention must be given to building capacity in the areas of human resource management. These findings are a reminder of the work that still must be done to improve management practices in the public service. MPAT Scores (3)

18. 18 The concepts of efficiency and value for money, are linked. Efficiency is about the relationship between input (resource use) or the cost of that input and output. Effectiveness is about achieving the desired effect or outcome. Value for money similarly refers to the relationship between the resources used and the value of the outputs and outcomes produced/delivered. This can also be referred to as cost- effectiveness. Therefore, two of the questions posed in the brief are dealt with jointly: o Identifying areas where efficiencies may be realised o Identifying opportunities with potential for value for money Principles of efficiency and value for money

19. 19 Departments should explore the sharing of scarce skills, such as- – health professionals employed by the Department of Health providing support to the Department of Correctional Services, –legal support services in the Department of Justice to curb the cost of procuring services of legal professionals from outside the Public Service. The Policy and Procedure on Incapacity Leave and Ill-Heath Retirement (PILIR) Leave is being reviewed, which affords an opportunity to identify cost savings in managing ill health in the Public Service, promoting productivity and ultimately output. Areas where efficiencies may be realised and opportunities for value for money

20. 20 Governance issues across the public service Evidence presented focuses on: Audit Outcomes Performance Management Financial Disclosure Framework Financial Misconduct Payment of Invoices Precautionary Suspensions Vacancy rate - posts additional to the establishment

21. The latest audit outcomes (2014/15) shows a general improvement in national and provincial departments results. However, there are some recurring areas of concern, these are 21 Audit Outcomes Department(s)2012/132013/142014/15 Correctional ServicesQualified OpinionQualified International Relations and Cooperation Unqualified with findings Qualified Water Affairs (Sanitation)Qualified Further to this, results show that there has been no improvement in the status of human resource management, which refers to the vacancy rate and instability, performance management, and consequences for transgressions. –The AG attributes this to inefficiencies in management and administrative capacity in departments. Officials in senior positions are critical for effective strategic planning and performance management, and reporting and affect the quality of ARs. –The concern here is that not all departments allocate these very important functions to senior managers to oversee.

22. Effective use of consultants by departments: –National and provincial departments have spent an estimated total of R 8,539 billion in 2014/15, which reflects a noticeable decline compared with the R 11,602 billion spent in 2013/14. –The amount was spent on the following: 22 Audit Outcomes (2) 2013/142014/15 Financial reporting serviceR 555mR 500m Preparation of performance informationR 25mR 62m IT ServicesR 846mR 2 134m Other ServicesR 10 176mR 5 843m The reality remains that there is insufficient skills transferred, which means no return on this investment and the potential of creating a dependency on these services. Other areas that should be addressed pertaining to utilisation of consultants are; adequate planning and appointment processes, and performance management and monitoring of consultants. It is essential that these processes by managed or overseen by senior officials to ensure effective contract management.

23. The foundation of effective governance and accountability is defined within the performance agreements. HoDs in the Public Service are required to enter into performance agreements (PAs) with their EAs 2014/15 saw a major drop in the compliance rate to an alarming 18%, however 2015/16 marked a significant increase 23 Performance Management

24. 24 Financial Disclosure Framework All members of the Senior Management Service (SMS) are required to disclose the particulars of all their registrable interests (e.g. companies and properties) to their respective Executive Authorities (EAs) by not later than 30 April each year.

25. 25 Financial Misconduct There has been a huge increase in the finalised cases of financial misconduct reported by national departments for 2014/15; from the 290 cases in 2013/14 to 563 in 2014/15. The departments with the highest number of cases: South African Police Service reported a total of 311 cases Social Development reported a total of 113 cases, and Defence reported a total of 34 cases.

26. 26 Financial Misconduct (2) The information reflects the cost of financial misconduct from 2011/12 to 2014/15 2011/122012/132013/142014/15 Amount Involved Amount Not Recovered Amount Involved Amount Not Recovered Amount Involved Amount Not Recovered Amount Involved Amount Not Recovered R 149,4mR 14,8mR 28,4mR 9,2mR 47,6mR 12,2mR 156,3mR 29,4m Since 2012/13 there has been a gradual decline in the % not recovered from 33% to 18.8% of the total amount involved in financial misconduct.

27. 27 Financial Misconduct (3) The table below highlights departments where amounts not recovered are over R 2million (2014/15 financial year).

28. Section 38 (1)(f) of the Public Finance Management Act (PFMA), 1999, requires Accounting Officers to settle all contractual obligations and pay all money owing, including intergovernmental claims, within the prescribed or agreed period. Treasury Regulation 8.2.3 clarifies the prescribed period by determining that all payments due to creditors must be settled within 30 days from receipt of an invoice. 28 Payment of Invoices

29. 29 Values of Invoices Although there has been a decline in the number of invoices paid after 30days, there has been an increase from 2014 to 2015 in the number of invoices older than 30days not paid. The values in relations to these numbers are reflected below:

30. 30 A good indicator of the health of the HR administration is precautionary suspensions. If officials are placed for long periods on suspension, it means a department does not deal promptly with discipline processes. If the department is not dealing promptly with discipline, the probability is high that other HR processes are also inefficient. 2014/15 reflects that although the number of employees on suspension declined, the average number of days suspended have increased. Suspensions

31. 31 Suspensions (2) Suspensions affect the wage bill because officials are paid whilst on leave and costs (e.g. acting allowances) may be incurred. For the last 3 years that has been a downward trend in the cost of suspensions from the 2012/13 financial year to R 32 million in 2014/15. It should be noted that there seems to be no direct correlation between the number of officials suspended and the cost of suspensions.

32. 32 Vacancy Rate – posts additional to the establishment 2014/152015/16 Number of Posts370 595383 621 Number of Posts Filled337 741354 087 Vacancy Rate8.9%7.7% No of Posts Filled Additional to Establishment 8 97316 295 Although the vacancy rate has been below the 10% norm, there has been an overall increase of 55% in the number of posts additional to the establish. Further to this, the following departmental vacancy rates are of concern (20% and above): Public Works at 48.2% from 21.6% in 2014/15; mainly resulting from the 29.2% in Programme 3 (Expanded Public Works) and the 53.4% in Programme 4 (Construction and Property Policy Regulations). Communication at 26% from 11.5% in 2014/15; attributed to the 40.6% at levels 13-16 and the 40% at levels 6-8 Human Settlements at 21% from 14.5%; impacting mainly SMS and MMS levels 9-16. This includes a 42.9% rate for economists.

33. Concluding remarks To build a capable and efficient state it is essential that the human resource management concerns raised by both the 2014 MPAT and the AG Consolidated Report for 2014/15 be addressed. –In particular, because human resource plans will serve as the basis for decision making pertaining to cost containment measures for the restrictions on filling of managerial and administrative vacancies. –Currently the development of these human resource plans are merely focused on compliance; there is a need for detailed work studies to inform these decisions. Coordination and collaboration, sharing of skills and resources remains at the heart of strategies and approaches of how we will survive this slow growth of our public finances, whilst continuing to respond to the expectations of citizens and communities for improved education, reliable local services and responsive public administration. This review presented reminds us that much work is still done to improve management practices in the Public Service. 33