Briefing to the Portfolio Committee for Public Service and Administration 29 January 2004

1. Briefing to the Portfolio Committee for Public Service and Administration 29 January 2004

2. This presentation will cover the following: • SAMDI 2002/03 Annual Report • Programmes • Human Resources • Financial Statements • Outline of challenges • Cabinet January 2004 January Lekgotla • SAMDI Strategic Plan • Progress to date

3. The case for learning in the public sector • Capacity development, through learning, is essential to equip the state to address past, emerging and future challenges, including the following: • SA is seeking to constitute the developmental state, while simultaneously accelerating the coverage and institutional scope of the state • Global dynamics, trade, stewardship of monetary and macro-economic policies and participation in international multilateral institutions have grown significantly more complex and has impacted on the range of competences that are required to be an effective public servant • Significant changes in the nature of trade and production, specifically with regard to the increasing dependence on accessing, developing, mediating and applying knowledge in all aspects of human endeavour; has made lifelong or continuous learning a necessary condition for developing a successful public service and for economic development • Our success in meeting the strategic objectives of the country are contingent on the development and retention of our human capital stock in the public service

4. Key objectives and programmes • Facilitating the development of a learning, innovative and accountable public sector committed to serving the people • Re-skilling and training of public servants to ensure appropriate skills and capacity for improved service delivery • Establishing credible quality assurance and curriculum development systems for all SAMDI programmes • Providing effective training, development and co-ordination of public service trainers in pursuance of needs-driven service • Working towards the implementation of a realistic strategy for the charging of services in the next three to five years • Providing for the overall management of SAMDI and the promotion of public sector organisation and staff development • Revision of internal procedures and systems to ensure seamless delivery

5. Programme 1: Administration • Programme 1 has the following aims: • The overall management of SAMDI • Policy formulation, management responsibilities of the Minister, Director-General and other members of the department’s management echelon • Organising the department • Rendering centralised administrative, legal and office support services • Managing departmental personnel and financial administration • Determining work methods and procedures • Exercising control • Policy developments include: • Improving SAMDI’s internal capacity to deliver on its mandate • The appointment of former European Union funded staff on one-year fixed term contracts additional to the Institute’s establishment • The implementation of SAMDI’s website

6. Programme 2: Public Sector Organisation and Staff Development • Programme 2 aims to: • Develop customer-driven competency-based training in line with the requirements of the South African Qualifications Authority (SAQA) and the National Qualifications Framework (NQF) • Co-ordination of a full range of organisation development (OD) interventions • Undertake customer-based consultation to enhance organisational performance and service delivery • Policy developments: • Provisional accreditation with the PSETA • Establishment of a Curriculum Review Committee • Introduction of e-Learning as a mode of delivery • Accreditation of the assessor training programme with the ETDP SETA • External impact assessment conducted with positive results • Training for Community Development Workers (CDWs) • Service delivery improvement through the provision of social grants training • Development of the Integrated Management Development Model

7. Training statistics

8. Training statistics (cntd)

9. Personnel costs by salary band

10. Turnover rates by salary bands • During the 2002/03 financial year, SAMDI recruited a total number of 50 employees • 48 of these were previously EC Contract staff who were offered one year contract positions, additional to SAMDI’s fixed establishment with effect from 1 January 2003. • 8 employees terminated their services, of which 5 were SMS members

11. Financial report • Opening balances findings: • The OAG issued a disclaimer on the 2002/03 AFS of the Trading Account • Opening balances will therefore be subject to further auditing in 2003/04 • A strategy to prepare for the audit of these balances is under development • Opening balances plan of action: • Review of transactions for 2002/03 and 2003/04 to distinguish between the Vote and Trading Account • Determine debtor and creditor balances as at 31/03/04 • Prepare a revised balance sheet for both years • Obtain approval for write off of balances

12. Financial report (cntd) • Income/ debtors findings: • Debtors are maintained manually • Uncertainty over the validity of debtors as at 31/03/03 • Invoices could not be traced to general ledger • Deposits could not be identified • ABSA bank account was not reconciled • Not all invoices were recorded • Invalid reconciling items on bank reconciliation • Supporting documents not reconciled • Fees not calculated consistently • Risk of duplicate invoicing • Income/ debtors plan of action: • Review bank reconciliation for 2003/03 and 2003/04 • Perform bank reconciliation where necessary • Compare order forms to attendance registers to invoices • Confirm completeness of invoices issued • Traced invoices to general ledger

13. Financial report (cntd) • Income/ debtors plan of action (cntd): • Review fees charged • Formulate bad debt provision and write-off policy • Calculate provisions for bad debts and amounts to be written-off • Review bank reconciliation for 2003/03 and 2003/04 • Perform bank reconciliation where necessary • Compare order forms to attendance registers to invoices • Confirm completeness of invoices issued • Traced invoices to general ledger • Review fees charged • Formulate bad debt provision and write-off policy • Calculate provisions for bad debts and amounts to be written-off • Review all debtor transactions for 2002/03 and 2003/04 • Review/ perform bank reconciliation • Review perform reconciliation with supporting documents • Review and implement internal controls of the debtor cycle • Determine debtor balances as at 31/03/04

14. Financial report (cntd) • Expenses/ creditors findings: • No clear distinction between Vote and Trading Account • Salaries are overstated • No reconciliation between BAS and PERSAL • Expenses are recorded in the wrong period • Potentially incorrect salary deductions • VAT not recorded correctly • Not all expenses supported by source documents • Unauthorised expenditure amount to R1.8 million • Documents relating to EBT not retained • Expenses/ creditors plan of action: • Confirm the basis for allocation of expenses • Develop a policy to allocate expenses between Vote and Trading Account • Apply the policy consistently to both 2002/03 and 2003/04 • Confirm completeness and accuracy of expenses on a sample basis • Obtain approval for changes to closing balances where required • Ensure that source documents support expenses • Determine creditor balances as at 31/03/04

15. Priorities emerging from January 2004 Cabinet Lekgotla Government What is the nature of the problem? • Capacity for service delivery uneven – with pockets of excellence for challenges of low capacity in all three spheres • New delivery system introduced (e.g. MPCCs) but not fully utilised • 25% procurement budget spent on consultants – policy advice, IT, with limited skills transfer • Highly mobile senior management echelon • In some cases, interventions to correct failures are too late for inadequate HRD one of key priorities of G & A cluster and identified as one of the “three big ideas” in Scenarios Planning process

16. Challenges emerging • Ensuring political support for these interventions (working with political leadership) • Reaching agreement on a compulsory certificate for the public sector (at the different SMS levels) • Facilitating effective HR Planning • Supporting the development of quality standards for SMS provision (through PSETA) • Develop quality curricula and alternative modes of delivery (e-learning) • Supporting the development of learning organisations (including workplace readiness) • Consolidating our regional strategy

17. Human Resource Development Goals of human resource development • To reorientate the norms, attitudes and values of public servants • To enhance the capacity of the state for improved service delivery • To take further our project to constitute the developmental state • To develop strategies to effectively harness civil society’s ability to contribute to government’s efforts

18. Human Resource Development Priorities for 2004 • To develop and begin implementation of a comprehensive, credible and outcomes-focused programme for skills development within the framework of the public sector HRD strategy • Focus on strategic skills gaps such as financial and project management • Based on rigorous review of existing efforts, institutions and systems, and should be based on an analysis of needs • Focus on norms, values, attitudes and orientations of public servants that are consistent with the objective of the developmental state

19. The response – SAMDIs Strategic Plan

20. The HRD imperatives within these transformation challenges,based on the HRD, NSDS and public sector HRD strategies Vision for the HRD strategy for SA • To maximise the potential of the people of SA through the acquisition of knowledge and skills to work productively and competitively in order to achieve a rising quality of life for all and to set in place an operational plan together with the necessary institutional arrangements to achieve this the specific need for a dedicated, responsive and productive Public Service SAMDI Mission • SAMDI’s central mission is to enhance the capacity of the public service to deliver on the strategic priorities of the South African Developmental State and to work actively to strengthen the link between learning and mission across the public service, and to design and deliver quality interventions that are responsive to the needs of management in the public services Strategic objective • By the end of 2006 the Public Service competently delivers effective and equitable services to the people of South Africa.

21. Result 1: full commitment to promote and implement the HRD strategy in all Public Service institutions and organisations and the development of a culture of high quality lifelong learning Role of SAMDI • To promote lifelong learning across the public sector and a public service learning organisation through supporting: • the development of a policy for Lifelong Learning across the public sector • departments to implement Lifelong Learning policies • an effective approach to knowledge management and infrastructure across the public sector

22. Result 2: an effective strategic and operational HRD planning framework established within the Public Service Role of SAMDI • To support effective skills planning across the public sector to ensure that targeted Human Resource Plans (or WSPs) within the context of a public sector HRD strategy are developed, and to offer training programmes to support key government strategiesincluding programmes that: • enable management to deal with HIV/AIDS in the public sector • address gender awareness • support equity and awareness with regards to people with disabilities • and that address ethics and anti-corruption strategies

23. Result 3: relevant competencies established within the Public Service Role of SAMDI • To deliver training programmes and advice related to management and administration, which supports the improvement of the systems that presently hinder effective service delivery and that, improves the capacity of the state to deliver on government’s strategic priorities. This includes: • the design and development of an induction programme for the public service • an emphasis on programmes that support different levels of management in the public service to develop practical, reflective and integrated management and leaderships skills (Focusing on the generic competencies required of Senior Managers through the EMDP/AMDP/ and the PSLDP) • the development and implementation of more specialised skills relating to areas such as Change Management Processes, HR related legislation and policies in the workplace and Supply Chain Management (systems, procurement and planning and budgets) • effective service delivery in line with Batho Pele standards, and the development of Community Development Workers

24. Result 4: Effective management and coordination of the implementation of the HRD strategy for the Public Service ensured Role of SAMDI • To undertake interventions that support management in the public sector to develop and implement systems that allow for the appropriate development and utilisation of human resources in the public sector • Undertake a detailed TDNA at SMS levels • provide support services to enable the implementation of quality learnerships and skills programmes in the public sector by creating learning organisations and focusing on coaching, mentoring and assessor training Result 5: to support AU programmes, with particular emphasis on NEPAD’s strategic objectives to improve the efficacy and efficiency of public sectors on the Continent Role of SAMDI • To support the implementation of the declaration of the 4th Pan African Ministers of Public Service Declaration • To develop interventions that support management development across the continent

25. Internal processes to ensure that SAMDI is able to meet these objectives • In order to enable SAMDI to achieve these objectives, the Institute will develop the requisite institutional capacity to enable the institution to effectively and efficiently carry out the activities outlined in the strategic plan, including by developing, fostering and maintaining partnerships, managing stakeholders and ensuring effective communication in support of the programmatic interventions. Including through: • Identifying a pool of visiting scholars, and practitioners • Appointing associates from public, academic, private and international sectors • Forming strategic partnerships with National MDIs • Relocating institution to premises that are conducive to our vision and mission • Supporting the development of HR policies and processes that encourage employee wellness and facilitate flexible work arrangements • Ensuring effective communication with stakeholders through creating and participating in relevant forums • The development of an effective information strategy and an information technology infrastructure to support the design and delivery of agreed upon interventions

26. Internal processes to ensure that SAMDI is able to meet these objectives • SAMDI will work as an institution that is able to continually learn and that promotes lifelong learning for its staff. Through this approach to learning and development SAMDI will strive to create a positive culture in which individuals are highly motivated and productive. This will be achieved through: • An integrated change management and skills development process for SAMDI staff to ensure continual learning and development, • to develop and implement an approach to curriculum development and quality assurance so that curricula aligns with quality standards, • Modes of delivery is appropriate to the needs of the learners – including an emphasis on e-learning, and curricula is contextualised to meet the needs of clients, • To support the development of research and knowledge management processes to ensure the development of a learning organization and an approach to Life Long Learning in SAMDI • Financial Management • SAMDI will offer relevant and quality interventions and operate in a cost effective manner in line with sound financial management principles (in line with PFMA). • SAMDI will be put in place a cost recovery strategy coupled with donor mobilisation, which ensures its long-term sustainability.

27. Progress to date • The implementation of the turn-around strategy led to the new structure that promised to deliver more effectively on the mandate of SAMDI. Changes in the Institute took place at an accelerated pace to ensure skilled staff component in delivering training and development interventions. While there is marked improvement in the functioning of SAMDI, transformation was not done with surgical precision. There is still a need to align structure with the new unfolding vision of SAMDI. • Significant steps have been taken to align the training and development interventions offered with with the Skills Development Legislation. SAMDI has obtained the necessary recognition as a provider of education and training by the Public Service SETA.

28. Progress to date (cntd) • Most of the courses offered by SAMDI have been designed to be outcome based, with pre-course work and post-course assignments as inherent requirements for successful completion of the course. • Through the customer needs driven approach and training needs analysis, SAMDI is now able to deliver relevant training and development interventions to departments. • SAMDI has begun to operate on a cost recovery basis. Progress made in this regard has been significant, with the Institute exceeding targets set for 2002/03 • SAMDI established the Project Assistance Team in 2000 to coordinate and facilitate donor funding. The roll-out of the EC funding was completed successfully as a result.

29. Concluding Comments • The challenges reflected in SAMDIs mandate and mission are substantial and of critical importance to the country • These challenges have been strongly re-affirmed in the 10yr Review, the Scenarios Planning and prioritised by the Cabinet Lekgotla • International developments are re-affirming the critical role of national Management Development Institutes and the role of the state • SAMDI is making steady progress in overcoming past shortcomings and problems and in reconciling its mission with delivery • Already achieved significant gains in important areas