Presentation to the Portfolio Committee on the

Appointment and Utilisation of Consultants

Report of the Auditor-Generaldated August 2002

30 October 2002

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Introduction

Four main reports regarding consultants• Performance audit of the acquisition and utilisation

of consultancy services in the PS - June 1996• Use of Consultants in the PS - June 2001 (Cabinet

resolutions, progress with implementation)• Performance audit Gauteng provincial

administration - September 2001 (Presented at SCOPA Gauteng, workshop with Committee and HODs)

• Appointment and utilisation of consultants at certain national departments and provincial administrations - August 2002

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Purpose of Presentation

• Facilitate public accountability by bringing audit findings as well as suggested corrective measures to the attention of Parliament

• Indicate progress with corrective measures concerning consultants in the PS

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Key Focus Areas

• Appointment and use of consultants

• Monitoring and control of performance

• Responsibilities of Departments and implementation

• Interventions implemented and envisaged by the DPSA

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Appointment and use of consultants:

Consider alternatives

• Alternative ways of addressing needs such as training and capacity building not always considered -

Consider filling of vacant posts, setting productivity standards for staff, networking, information sharing and work overtime

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Appointment and use of consultants:Procurement

• Sound procurement principles not always applied - comparing tenders not only on the basis of price but also functionality, expertise and knowledge of tenderers

Strengthening existing guidelines and procurement procedures for consultants and determining national norms and standards.

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Appointment and use of consultants:

Competencies of Consultants

• Appointed without required experience of competencies

• Competencies not evaluated before awarding tender

• Resulted in staff having to be withdrawn from their functions to assist the consultants

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Appointment and use of consultants:

Competencies of Consultants

Greater awareness of the internal cost of own staff's time in providing information and managing relationships

References of consultants should be followed up

Require consultants to provide proof of previous successes and the knowledge of consultants should be tested when tenders are evaluated

The DPSA should consider introducing a code of conduct or system of accreditation

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Appointment and use of consultants:

Transfer of skills

• Contracts and TOR’s do not always provide for skills transfer

• Capacity building not closely monitored Provide opportunities for staff to learn

from consultants by creating mixed teams

Consider how the DPSA and the SAMDI could assist departments to follow best practice frameworks for skills transfer

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Appointment and use of consultants:

Appointment permanent basis

• Appointed on a permanent basis or contract periods were continually extended

• This often resulted in the approved establishment being extended and departments becoming reliant on consultants to perform certain primary functions

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Appointment and use of consultants:

Appointment permanent basis

Vacancies must be filled as soon as possible The duration of the appointment of consultant

must be limited to a reasonable period to ensure that the position is filled

Consider cost-effectiveness of the appointment of consultants compared to the filling of vacant posts

The DPSA should evaluate remuneration structures for positions in the public service in terms of similar job descriptions and remuneration structures in the private sector

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Appointment and use of consultants:

Unclear need of appointment

• Lack of detailed specification of -– the services required– available resources– intended outcomes or product– required expertise – timetable for completion – long-term implications and risks

• Tenders was extended thus not complying with the requirements of transparent, fair and competitive procurement

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Appointment and use of consultants:

Unclear need of appointment

Rigorous assessment of the need to appoint consultants with prove of not meeting challenges internally

Prospective tenders are appropriately briefed and the nature, outcomes, responsibilities and time frame of the work is clear

Provide TOR’s that serve as a guide to consultants regarding the size and scope of the work.

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Performance Monitoring and Control

• Poor monitoring and verification of – consultants’ performance– progress with projects – extent to which set objectives were

achieved before payments are made• Thus the impact of the work of

consultants on service delivery were not evaluated

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Performance Monitoring and Control

Undertake more regular evaluations while an assignment is in progress and when it has been completed

Link consultants’ remuneration to achieved performance

Evaluate performance by independent internal auditors

Disseminate and implement lessons learned from evaluations.

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Responsibilities of and Implementation by Departments

Departments did not create an environment where consultants could perform their duties effectively

Interventions proposed were not always implemented due to -- inadequate human or financial

resources- a lack of commitment- lack of computer skills

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Responsibilities of and Implementation by Departments

Create organisational climate and put processes in place that are supportive to achieving the objective for which the consultant was appointed

Assess capacity to absorb outside assistance and implement proposals before tender specifications are finalised

Management should accept ownership of the business plan before the project starts

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Interventions implemented and envisaged by the DPSA

Conducted research on the use of consultants in the Public Service - Report published and presented to Cabinet

The findings of the research are similar to those made by the AG in this and previous performance reports

Departments were informed to have approved guidelines on the use and management of consultants with due consideration to specific issues raised in the Report (compliance audit by sampling 10 Departments)

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Interventions implemented and envisaged by the DPSA

Amending the Public Service Regulations to (June 2002) to provide for -- A definition of a consultant- Departments to report in their annual reports on

the use of consultants- The MPSA to determine the format for reporting in

annual reports The MPSA approved the format in which

departments must report in their annual reports, namely -- Report and analysis of consultant appointments using

appropriated funds and donor funds, including historically disadvantaged individuals

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Interventions implemented and envisaged by the DPSA

Provided substantive inputs into the draft National Treasury procurement framework, which will include procedures for the appointment and management of consultants

Finalising a Guide on hourly fee rates for consultants based on PS remuneration levels

Finalising a data base of 2113 consultant reports produced for the Public Service that will be made available to Departments

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Summary

The DPSA is continuing to work with the Office of the AG and the National Treasury in order to promote the efficient and effective use of consultants in the Public Service in support of service delivery to our citizens