National School of Government Annual Report 2014/15

A presentation by Prof. Richard M LevinOctober 2015

Outline of Presentation

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1. Mandate 2. Strategic Overview3. Summary of Performance

3.1 Branch: Corporate Management 3.2 Office of the Chief Financial Officer3.3 Branch: Training Policy and Planning 3.4 Branch: Specialised Services 3.5 Branch: Training Management & Delivery

4. HR Oversight 5. Summary of Financial Performance6. Financial and Non-Financial Performance for 2015/167. MTEF Budget Allocation and Priorities beyond 20158. Recommendations 9. Conclusion

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MandateThere shall be a training institution listed as a national department (in Schedule 1). The management and administration of such institution shall be under the control of the Minister. Such institution-

(1)shall provide such training or cause such training to be provided or conduct such examinations or tests or cause such examinations or tests to be conducted as the Head of the institute may with the approval of the Minister decide or as may be prescribed as a qualification for the appointment or transfer of persons in or to the public service;

(2)may issue diplomas or certificates or cause diplomas or certificates to be issued to persons who have passed such examinations.

Legislative DevelopmentsThe assenting of the Public Administration Management Act, 2014 by the President has extensive implications for the NSG, primarily being its establishment as a higher education institution

Mandate and Current Service Delivery Model for the National School of Government

Delivery and Funding Model•NSG provides training to public servants using own and contracted training facilitators, as well as through partnerships with higher education institutions

• Training is provided in the four streams of: Leadership, Management, Administration & Induction

• Cost recovery Model using the Training Trading Account

Financial and Non-financial Performance for 2014/15

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Strategic Overview of 2014/15Strategic outcome-oriented goals

For the five year period, the institution set the following strategic goals:

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A fully established, well-functioning and high performing National School of Government responding to the developmental agenda of the State

A well-resourced funding mechanism that supports financial viability and sustainability for NSG activities

Human resource capacity with sufficient capabilities to respond adequately to the strategic imperatives of the NSG

Effective learning and development opportunities in the public sector supported by credible quality assurance processes and centrally managed uniform norms and standards

Well-structured and effective strategic national and international partnerships which influence and enhance public sector learning and development interventions

Enhanced marketing and visibility of NSG products and services

The quality and levels of performance of public sector institutions are improved through strategic diagnosis and targeted interventions

Knowledge resource centre that is accessible for evidence-based learning and development with well researched, reliable and relevant materials

Curriculum, programmes and services adequate for departmental needs and effectively responding to sectoral and institutional needs

Strengthened and stabilised political-administrative interface in the public sector through a framework of specifically designed programmes

Effective implementation of in-service learning and development across the public sector

Dedicated attention to the present and future needs of a professional and responsive public sector

Strategic Overview of 2014/15Programme and Budget Structure

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Programme 1: Administration

This programme facilitates the overall management of the School and provides for responsibilities of the Principal, Branch Heads and other members of management.

The above programme is structured as follows:

Office of the Principal comprising the Office of the CFO and Internal Audit (outsourced)

Corporate Management comprising Strategic Planning and ICT, Corporate Services, International & Special Projects, Communications as well as Legal, Compliance and Contract Management

Strategic Overview of 2014/15Programme and Budget Structure

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Programme 2: Public Sector Organisational and Staff Development

This programme facilitates the transfer of payments to the Training Trading Account for management development and training of the public sector employees

The above programme is structured as follows:

Training Policy and Planning comprising Research and Innovation, Monitoring and Evaluation, Policy and Planning Coordination, Norms and Standards

Training Management and Delivery comprising Induction, Leadership, Administration, Management, Technical Support and Marketing

Specialised Services comprising Curriculum Design and Development, Quality Assurance, Accreditation, and ELearning

Summary of performance

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In September 2014, the Public Service Commission undertook a study on the effectiveness of training provided by PALAMA in improving skills and competencies, and found that:

PALAMA is addressing the skills shortage by designing programmes that are meant to develop employee skills

There is relevance in the training offered and learners gain in-depth understanding of the link between government objectives and their responsibilities

Members of the SMS are of the view that the training has had a positive impact on their performance

The study recommended that:

The NSG should conduct a holistic assessment on capacity building programmes for SMS

Assess whether the current performance management and development system is assisting in identifying, addressing and improving organisational performance

Implement measures to foster positive attitudes to serve citizens professionally and in line with Batho Pele

Summary of Performance Against APP Targets Number of persons trained per stream

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Leadership Management Administration Induction BB2E0

2000

4000

6000

8000

10000

12000

14000

16000

9675 9649

3544

14055

1670

Summary of Performance Against APP Targets Performance Status per Branch

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Corporate Management Specialised Services Training Management & Delivery

Training Policy and Plan-ning

Office of the CFO

Targets achieved 21 4 8 13 7

Targets not achieved 12 0 11 2 2

2.5

7.5

12.5

17.5

22.5

Perf

orm

ance

Tar

gets

Summary of PerformanceBranch: Corporate Management

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Fifteen departmental policies were developed and approved for implementation

Strategic Plan and Annual Performance Plan tabled and implemented. The NSG also developed an operational plan, which informed the development of individual performance agreements, performance agreements signed by May 2014

Since the launch of the NSG, work has been undertaken towards revamping the website to be more functional and up-to-date

Organisational risk assessments undertaken and action plans have been developed

Contracts and service level agreements of outsourced service providers were managed on a monthly basis

International capacity building partnerships and programmes were managed during this reporting period

The Disaster Recovery Solution has been deployed, and the NSG has also undertaken a refresher of all old and aging hardware

Summary of PerformanceOffice of the Chief Financial Officer

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All payments were made within 30 days of the receipt of invoice

8 verification audits for inventory and assets were performed

Conceptual document on funding model developed

The NSG received 100% compliance with the National Treasury Requirements on procurement

The outstanding debt still remains high, with departments still not making payments for services rendered. This, despite measures in place to follow up with departments.

This has led the NSG to take a stance of issuing a circular to all departments, instructing payment prior to the training being offered, this will commence in 2015/16 financial year

Summary of PerformanceTraining Policy and Planning

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M&E policy framework was approved and has been implemented

62 on-site evaluations were undertaken and 100% of all programmes and courses monitored through reaction evaluation questionnaires

3 Application of learning study of 3 NSG programmes completed

State of the Public Service in Africa (SOPSA) report was produced and tabled at the AMDIN workshop. This report will be reworked depending on Africa-wide progress with the greater SOPSA project

A comprehensive report on the Compulsory Induction Programme was finalised. This will also inform policy development and further rollout of the induction programme

The final report on the Base Line Study conducted for the Legislative Sector was presented at National Parliament and submitted to the Legislative Sector

Summary of PerformanceSpecialised Services

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3 new programmes/ courses completed (CIP Levels 13-14; Lead Facilitator Development Programme for Reorientation; Lead Facilitator Development Programme for Citizen Centred Service Delivery)

18 existing programmes reviewed, and 14 programmes were quality assured

NSG accredited by the QCTO as a Skills Development Provider on 07 November 2014, and by the QCTO as an Assessment Centre on 23 February 2015

Undertook 20 eLearning interventions, including fully technology mediated courses and online communities of practice

Summary of PerformanceTraining Management and Delivery

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The Executive Development Programme (EDP) certification ceremonies were held in April and May of 2014. In total, 128 managers were awarded the Certificate in Executive Leadership after successfully completing six core modules

The NSG convened a series of 1-day workshops for senior managers in the public service, facilitated by an internationally renowned visiting scholar, Prof Al Gini

The NSG was selected as the preferred service provider by the SAPS (HAWKS) in the training of 245 officials in SCM, Contract management, Inventory and storage management, project management, Detection and Combating Bid rigging and Strategic HR Planning offerings. Furthermore, a partnership was established with National Treasury, with a commitment of R500, 000 for the funding of the training rollout of Standard Chart of Accounts and Economic Reporting Format (SCOA & ERF) for practitioners

A Training-of-trainers session was conducted on the United Nations Agency (UNDESA) Toolkit on Disability for Africa in support for the implementation of the Convention on the Rights of Persons with Disabilities (CRPD)

The NSG hosted a very successful Public Sector Trainers’ Forum (PSTF) Conference from 24-26 November 2014. The conference was attended by close to 500 national and international speakers and delegates. Awards were also conferred to best performing training facilitators and institutions.

NSG is committed to supporting government initiatives on youth oriented programmes. In 2014/15, a total of 1670 rural unemployed graduates benefited in the NSG joint initiative with the Department of Rural Development and Land Reform

Summary of Performance Areas for improvement

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The Portfolio Committee has been briefed on the options being piloted, focusing on the Compulsory Induction Programme (13-14), Performance Management & Development System, Government Leadership Platform, and an international exchange programme with the China Academy of Governance

The NSG also acknowledges the lack of capacity and strength in its marketing initiatives, and is committed towards a new approach

The NSG is also at an advanced stage of the Trainer Capacity Development Programme. A total of 775 public servants from all provinces were identified and trained as facilitators for the Compulsory Induction Programme

The NSG is gearing towards achieving high volume training, especially through eLearning

Summary of Performance Human Resource Oversight

Employment and vacancies by salary band as on 31 March 2015

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Programme Number of posts on approved

establishment

Number of posts filled

Vacancy Rate Number of employees additional to the establishment

Programme 1 90 79 12.2% 6Programme 2 137 113 17.5% -Total 227 192 15.4% 6

Salary band Number of posts on approved

establishment

Number of posts filled

Vacancy Rate Number of employees additional to the establishment

Senior management (13-16)

50 38 24%  

Highly skilled supervision (9-12)

80 63 21.2%  

Highly skilled production (6-8)

72 68 5.6%  

Skilled(3-5)

25 23 8% 6

Total 227 192 15.4% 6

Employment and vacancies by programme as on 31 March 2015

Summary of Performance Human Resource Oversight

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EMPLOYMENT EQUITYIncluding employees with disabilities as at 31 March 2015

Female 63%

Male 37%

Persons with disabilities 3%

Female-Male ratio at SMS level 50%-50%

SMS Level Total number of funded SMS

posts

Total number of SMS members

Total number of signed

performance agreements

Signed performance agreements as % of total number of SMS

members

Principal/ Head of DepartmentSalary Level 16

1 1 1 100%

Salary Level 15 3 2 2 100%Salary Level 14 16 15 14 93.3%Salary Level 13 30 21 19 90.5%Total 50 39 36 92.3%

SIGNING OF PERFORMANCE AGREEMENTS: SMS members as on 31 August 2014

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Vote 12a Appropriation per programme

2014/15 2013/14

APPROPRIATION STATEMENT

Adjusted Appropriation

Shifting of Funds

Virement

FinalAppropriation

ActualExpenditure

Variance

Expenditureas % of final appropriation

FinalAppropriation

ActualExpenditure

  R'000 R'000 R'000 R'000 R'000 R'000 % R'000 R'000Administration 82,911 - - 82,911 78,293 4,618 94.4% 82,922 85,622 Public Sector Organisational and Staff Development

  

55,597

  -

  -

  

55 597

  

55,597

  -

  

100.0%

  

49,000

  

49,000

TOTAL 138,508 - - 138,508 133,890 4,618 96.7% 131,922 134,622

Summary of Financial Performance

The total expenditure breakdown of R133 million spent in 2014/15 and spending patterns compared to the 2013/14 financial year is summarised as follows:

 Programme1. Administration: Compensation of employees for the Vote-funded staff component of

NSG increased by 1.9% from R36.2 million (2013/14) to R36.9 million in 2014/15, due to salary adjustments. Goods and services decreased by 23.6% from R47.9 million (2013/14) to R 36.6 million in 2014/15. The decrease is based on the implementation of the National Treasury cost cutting measures and reduction on costs for advisory task team consultants. Expenditure on capital assets increased by 207% from R1.3 million (2013/14) to R4.2 million in 2014/15. The increase is due to replacement of aging non-compatible computer hardware.

 Programme 2. Public Sector Organisational and Staff Development: The transfer of funds from

Vote to the TTA increased by 13.3% from R49.0 million (2013/14) to R55.5 million in 2014/15.

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Training Trading Account Summary of Financial Performance

Note 2014/15 2013/14Training Trading Account

R'000 R'000

REVENUE 149,849 158,189Revenue from exchange transactions 3 94,252 107,984

Revenue from non-exchange transactions 4 55,597 50,205

EXPENDITURE (148,825) (157,955) Employee benefits 5 (61,471) (58,202)Operating expenses 6 (87,354) (99,753)

SURPLUS FOR THE YEAR 1,024 234

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Training Trading Account Summary of Financial Performance

Training Trade Account A trading entity established in terms of the PFMA. The statements are prepared in accordance with Standards of Generally Recognised Accounting Practice (GRAP). To achieve full compliance with accrual accounting requirements, the prescribed financial accounting system of the trading entity is supplemented by additional manual procedures. Total revenue (including the transfer of funds from the Vote appropriation) decreased by R8.3 million from R158.1 million (2013/14) to R149.8 (2014/15), a decrease of 5.3%. Income from course fees decreased by 14.4%, from R102.1 million (2013/14) to R87.3 million (2014/15). Transfer funds from Vote to Trade increased by R6.5 million from R49.0 million in 2013/14 to R55.5 million in 2014/15.  Total expenditure in the TTA decreased by R9.1 million from R157.9 million (2013/14) to R148.8 million in 2014/15. The decrease is mainly attributable to the following: • Operating expenses decreased from R99.7 million in 2013/14 to R87.3 million in 2014/15.

This is mainly due to low training interventions conducted. • Compensation of employees increased by 5.2% from R58.2 million in 2013/14 to R61.4

million in 2014/15. The increase is inflationary related and vacancies filled during the year. ( Programme 2 employees budgeted under this account )

 The TTA closed the year with a surplus of R0.2 million in 2013/14 and the closing status in 2014/15 is a surplus of R1.0 million

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OverallSummary of Financial Performance

Unqualified Audit Report for the 7th year running

Virement/ Roll overs No virement was requested during the financial year under review.  Irregular ExpenditureA total of R420 000 was incurred as irregular expenditure during the financial year and condoned as the Department did not suffer any financial loss due to these transactions. The reasons for the irregularities relate to non-adherence to procurement approval process for deviations. The NSG will ensure that all officials are aware of supply chain processes and regulations and that they adhere to them. Public Private Partnerships (PPP)The NSG did not enter into any PPP contracts during the 2014/15 financial year.

Supply Chain Management All official assets captured in the asset register and the register complies with the minimum requirements as set by National Treasury. In order to strengthen asset management and minimise the risk of loss of assets, quarterly asset verifications are conducted and reports presented to the Executive Management Committee.

All payments processed within 30 days

Financial and Non-financial Performance for 2015/16

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NSG Strategy for 2015-2020

Strategic Outcome Goals

A fully established, well-resourced and high performance institution

Improved learning and development opportunities influenced by impactful research, strategic diagnosis and monitoring and evaluation

Cutting-edge learning and development tools, quality-driven curriculum, programmes and services responding to public service needs and training, staff development and support

Integrated and collaborative network of learning and development institutions and practitioners providing the public service with affordable access to quality learning and development opportunities

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NSG Strategy for 2015-2020

Strategic Objectives for Programme 1 (Administration)

Implement effective policies, strategies and plans that comply with legislation, good corporate governance principles and improved organisational performance standards

Efficient and effective fiscal, infrastructure and human resource planning and management to support the sustainability of the institution

Co-ordinate the utilisation of donor funded resources and international co-operation agreements towards improving human capacity development

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NSG Strategy for 2015-2020

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Strategic Objectives for Programme 2 (Public Sector Staff and Organisational Development)

Implement effective research, knowledge management and diagnostic strategies to inform learning and development needs and opportunities

Implement an effective monitoring and evaluation framework to monitor the quality of learning and development interventions and evaluate the effectiveness of interventions on performance based on set norms and standards

Design and quality assure accredited and non-accredited curriculum which responds to public service needs, individual career pathing and lifelong learning

Manage an integrated and collaborative network of local and international learning and development institutions and practitioners to provide learning and development opportunities

Train on NSG curriculum, programmes and services with access to learning and development opportunities that provide quality training, learner materials and effective learner support

Provision of reliable and accurate learning and development information through the integration of core records management systems

NSG Strategy for 2015-2020

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Training delivery targets per training stream

Year 1 is inclusive of addressing the CIP implementation backlog Projected figures are not inclusive of new programmes based on ministerial directives, or

the review of the current suite of programmes

Stream 2015/16 2016/17 2017/18 2018/19 2019/20

Induction & BB2E

32 100 22 750 23 000 23 000 23 000

Administration 5 150 5 350 5 550 5 750 6 000

Management 11 900 13 500 15 100 16 700 18 300

Leadership 10 900 11 000 11 100 11 300 11 500

TOTAL 60 500 52 600 54 750 56 750 59 000

Summary of Financial and Non-financial Performance

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Over the last two quarters, the NSG has trained a total of 8,499 public servants in all training streams and has additional confirmed booking for 17,800 public servants

Revenue generation based on the cost recovery model over a 6-month period amounted to R22.2 million

The NSG has implemented the system of pre-payment for programmes and courses, which is resulting in improvements in payments by departments. Prepaid confirmed bookings for quarter 3 & 4 amounts to R15.8 million

As part of the trainer capacity development, the NSG is doing final field testing on the Lead Facilitator Development Programme in relation to the Re-orientation Programme and the Citizen-centred Service Delivery Programme

As reported previously to the Portfolio Committee, the NSG has commenced with the piloting options – Compulsory Induction Programme, Performance Management Course, NSG Leadership Platform and the International Exchange Programme

The hosting of the PSTF Conference, in partnership with the Northern Cape Provincial Government, from 5-7 October 2015

MTEF Budgetary Allocation

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Beyond 2015 Priorities

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The NSG cannot maintain a contracted brokerage service in supporting the constrution of a South African Developmental State. This requires public service policy shifts including an overarching training policy, as well as amendments to the existing public service wide PMDS to enable public servants to become training facilitators

The NSG must broaden its focus, especially in light of the PAM Act, to focus on local government education and learning, while also focusing on expanding its work in the legislative sectors. This will add more to the research work and diagnostic /needs analysis

The NSG requires further ICT investment to support the extensive training coverage, particularly mandatory programmes through online courses, as well as expanding its depth and reach. Institutionally, the enterprise architecture should provide for core institutional systems supporting learner records and content management also adding assessment work as part of its responsibilities

A fully-fledged campus with classrooms and infrastructure supporting education and learning is the most critical additional requirement in the next MTEF

MTEF Allocation Vote Account

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  15/16 16/17 17/18 18/19

R'000 Current Budget MTEF MTEF MTEF

VOTE        

Administration 84 289 90 367 98 842 104 384

Public Sector Organisational and Staff Development 55 247 56 009 57 720 60 580

Total 139 536 146 376 156 562 164 964

  15/16 16/17 17/18 18/19

R'000 Current Budget MTEF MTEF MTEF

VOTE        

Compensation of Employees 47 790 51 766 55 288 58 493

Goods and Services 34 141 36 243 41 090 43 295

Capital Assets 2 358 2 358 2 464 2 596

Transfer to Trading Entity 55 247 56 009 57 720 60 580

Total 139 536 146 376 156 562 164 964

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MTEF Allocation Trade Account   15/16 16/17 17/18 18/19

R'000 Current Budget MTEF MTEF MTEF

TRADE        

Gross Revenue (Mainly Course Fees) 143 632 150 971 158 669 167 184

Interest received 2 319 2 434 2 556 2 693

Transfer from the Vote 55 247 56 009 57 720 60 580

Total TRADE Revenue 201 198 209 414 218 945 230 457

Total TRADE Expenditure 201 198 209 414 218 945 230 457

Compensation of Employees 82 070 88 490 94 507 99 989

Goods and Services 119 128 120 924 124 438 130 468 Surplus/Deficit - - - -

Recommendations

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On the 2014/15 financial and non-financial performance, it is recommended that the Portfolio Committee:

Notes the performance of the National School of Government for the financial year within the budget vote as confirmed by Parliament and the unqualified audit issued by the Auditor-General

Notes some of the institutional challenges in meeting performance targets and improvement areas going forward

On the 2015/16 financial and non-financial performance, it is recommended that the Portfolio Committee:

Notes the second quarter performance of the National School of Government

On the MTEF allocation, it is recommended that the Portfolio Committee:

Notes the pilot programmes are being implemented utilising the existing budget Notes that the post-pilot implementation will require additional resources, which are

currently being costed

Conclusion

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The NSG remains committed towards improving the skills capacity in the public service, ensuring efficient application of knowledge in the workplace

There are areas of improvement that have been identified for addressing in the 2015/16 financial year, and these improvement areas have been shared with the Portfolio Committee

We are reminded of the words of the late Minister Chabane:

“A second important recommendation from the NDP, is strengthening the capacity of the state, through appropriately suitable skilled and qualified personnel. The National School of Government has been tasked with addressing this gap and we are back to the drawing board and going back to basics as we are cognizant that the universities are in the business of transferring knowledge and the Public Service workplace is responsible to turning these into usable skills which are capable to transform the state”

Enkosi, Realeboga, Dankie, Thank you

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