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V O T E N O 4 7 A N N U A L R E P O R T
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CENTRE FOR PUBLIC SERVICE INNOVATION
VOTE NO 47ANNUAL REPORT
2016/2017 FINANCIAL YEAR
CPSIShowcasing and
rewarding publ ic sectorinnovative solut ions
UNLOCKINGINNOVATION
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
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C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
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T A B L E O F C O N T E N T S
PART A: GENERAL INFORMATION 51. Department’s general information 62. L ist of abbreviat ions/acronyms 73. Foreword by the Minister 84. Deputy Minister Statement 105. Report of the Accounting Off icer 126. Statement of responsibi l i ty and conf i rmation of accuracy for the Annual Report 187. Strategic overview 197.1. V is ion 197.2. Miss ion 197.3. Values 198. Legis lat ive and other mandates 209. Organisat ional structure 2010. Ent i t ies report ing to the minister 21
PART B: PERFORMANCE INFORMATION 221. Auditor General ’s Report : predetermined object ives 232. Overview of departmental performance 232.1 Service del ivery environment 232.2 Service del ivery improvement plan 232.3 Organisat ional environment 232.4 Key pol icy developments and legis lat ive changes 243. Strategic Outcome Oriented Goals 244. Performance information by programme 264.1 Programme 1: Administrat ion 264.2 Programme 2: Publ ic Sector Innovat ion 335. Transfer payments 506. Condit ional grants 507. Donor funds 517.1. Donor funds received 518. Capital investment 52
PART C: GOVERNANCE 531. Introduct ion 542. Risk Management 543. Fraud and Corruption 544. Minimis ing conf l ict of interest 555. Code of conduct 556. Health safety and environmental issues 567. Portfol io Committees 56
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8. SCOPA resolut ions 579. Pr ior modif icat ions to audit reports 5710. Internal control unit 5711. Internal Audit and Audit Committees 5712. Audit and Risk Committee Report 59
PART D: HUMAN RESOURCE MANAGEMENT 611. Introduct ion 622. Overview of human resources 623. Human resources overs ight stat ist ics 63
PART E: FINANCIAL INFORMATION 831. Report of the Auditor General 842. Annual f inancial statements for the year ended 31 March 2017 87
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
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V O T E N O 4 7 A N N U A L R E P O R T
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PA R T A : G E N E R A L I N F O R M A T I O N
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
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1 D E P A R T M E N T ’ S G E N E R A L I N F O R M A T I O N
GOVERNMENT COMPONENT: CENTRE FOR PUBLIC SERVICE INNOVATION
PHYSICAL ADDRESS: Corporate 66 Off ice Park Corner Von Wil l igh and Lenchen Street Centur ion Pretor ia South Afr ica
POSTAL ADDRESS: Postnet Highveld Suite 404 Pr ivate Bag X111 Centur ion 0001
TELEPHONE NUMBER/S: +27 12 683 2800
FAX NUMBER: +27 12 643 0943
EMAIL ADDRESS: info@cpsi .co.za
WEBSITE ADDRESS: www.cpsi .co.za
TWITTER: CPSI_SA
SKYPE: CPSINNOV8
FACEBOOK: Centre for Publ ic Service Innovat ion
GPS COORDINATES: 25º51’11.19”S 28º11’44.52”E
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2 L I S T O F A B B R E V I A T I O N S / A C R O N Y M S
AGSA Auditor General of South Afr icaAO Accounting Off icerAPRM Afr ican Peer Review MechanismCAPAM Common Wealth Associat ion of Publ ic Administrat ion and ManagementCD Chief Director CFO Chief Financial Off icerCPF Community Pol ic ing ForumCPSI Centre for Publ ic Service Innovat ionD Director DPSA Department of Publ ic Service and Administrat ion ED Executive DirectorGEMS Government Employees Medical SchemeICT Information and Communicat ion Technology MMIC Mult i -media Innovat ion Centre MPSA Minister for the Publ ic Service and Administrat ionMTEF Medium Term Expenditure Framework MTSF Medium Term Strategic FrameworkNDP Nat ional Development PlanNESTA Nat ional Endowment for Science, Technology and the ArtsNQF Nat ional Qual i f icat ion Framework NSG Nat ional School of Government OECD Organisat ion for Economic Co-operat ion and DevelopmentOGP Open Government PartnershipOPSC Off ice of the Publ ic Service CommissionPERSAL Publ ic Service Salary Administrat ion SystemPFMA Publ ic Finance Management ActPMDS Performance Management and Development System SADC Southern Afr ican Development Community SCM Supply Chain ManagementSMME Smal l Medium and Micro Enterpr isesSMS Senior Management Service TR Treasury Regulat ionsUN United NationsUNDP United Nations Development ProgrammeUNPAN United Nations Publ ic Administrat ion Network
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3 F O R E W O R D B Y T H E M I N I S T E R
The truth about governments is that the roles that they traditionally played in the society have transformed and evolved with time. Traditionally social welfare, or the delivery of vital services to citizens constituted the key mainstay or forte of the state. Nowadays, role of governments, in particular that of constitutional democracies, have evolved phenomenally. Governments are increasingly expected to play a pivotal role in economic and social development, in partnership with the private sector and society at large.
Modern day governments performing under these circumstances are placed under enormous pressure. Citizens have grown accustomed to a certain level of service and the private sector continues to challenge us as government by demonstrating the seemingly limitless potential of ICTs in opening up complex multi-channels. We are expected to up our game and perform competitively in terms of the quality of services they offer and the processes involved. Many departments have demonstrated that they are indeed attune to the needs of the people that they serve and, more importantly, demonstrating responsiveness and reciprocate with relevant services at the appropriate time.
The challenge of delivering modern and innovative services to citizens has therefore become highly complex and requires ways and methods that are equally complex and more sophisticated to match the sophistication and high expectations created by the richly resourced private sector.
In this regard the National Development Plan (NDP) observed that the presence of out-dated national models in public sectors in most countries rendering them unable to deal with global challenges”. For that the recommendation is a relentless shake-up and overhaul of national and international institutions.
Focussing on our government, the National Development Plan (NDP) highlights the continued existence of deep-seated cracks and unevenness in capacity in the public sector which would adversely affect its ability to contribute towards the building of a capable, development-oriented state as envisaged in Vision 2030. As a blueprint towards the achievement of Vision 2030, the NDP provides guidance by unpacking a number of key drivers for change and what would constitute an enabling environment. The NDP called for a complete public sector reinvention through a plethora of interventions in critical areas such as improving inter-departmental coordination to ensure integrated, seamless service delivery, building a capable and public sector cadre with sufficient technical and specialist professional skills, efficient and effective management and operations systems, strengthening accountability to citizens and reducing corruption in the public service.
However, critically the NDP singled out innovation as a key ingredient for successful government transformation for optimal performance. Innovation, it says, should start to become pervasive across state, business and social sectors. Innovation should focus on improved public services and on goods and services aimed at low-income sectors.
Most critically, the task to reinvent, redesign and rebuild government through innovation should be a course whose advancement becomes a shared responsibility amongst public sector institutions, collaborating across the three spheres of our government. In addition, as part of promoting active participatory citizenship, innovation should be a cross-sectoral priority involving other key partners and stakeholders such as
Innovat ion should focus on improved publ ic serv ices and on goods and serv ices aimed at low-income sec tors
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business, academia and civil society to collaborate to reinvent, redesign and ‘rebuild’ the government of the future. The government of the future will continuously evolve over time and would adapt to remain relevant and responsive to the ever-changing dynamic needs of the citizens.
The Centre for Public Service Innovation bares the highly strategic mandate of driving the culture and practice of innovation in our public sector with a view of improving our government’s capacity to perform its mandatory duties.
The CPSI continues to lead the way in the transformation of our government through innovation. A number of processes and services in key areas of our government such as finance, healthcare and education have been reinvented through the unveiling of highly innovative projects, some of which were replicated to save government unnecessary costs. Beyond redefining service standards, the replication of these projects is of critical importance given the economic conditions prevailing at the moment.
Working together with the CPSI and guided by the National Development Plan, departments need to fully leverage innovation as one of the key building blocks for a capable state. Because innovation is about new thinking and new ideas it can only take root within a culture that draws on one’s social awareness and identity as a basis for forward-thinking, creativity and openness to change. Innovation should define the strategic direction of the public sector.
Reinventing government may be a long, complicated and contentious journey, but it is the only journey that
will allow us to realise our vision of creating a better life for all. We need to work hard to tackle all the cross-cutting challenges that can hamper our efforts to unlock innovation. Overcoming the bureaucratic barriers and ensuring a “whole-of-government’ approach to solving problems, requires the harnessing the power of citizens’ ideas and the people behind them; building open, transparent and trust-based relationships with citizens, and enabling a culture that supports innovation, as so succinctly listed by the OECD in their recent report on Embracing Innovation in Government.
In order to maximise the potential for innovation, and ensure socio-economic justice for all citizens, we need to take a leaf from the OECD’s report by prioritising innovation as a catalyst for enhanced service delivery and by “adjusting the internal mechanisms of government in ways that enable innovation”.
Such a permissive and supportive environment is required for us as a country at large where our global competitiveness is dependent on a strong National System of Innovation and it is equally needed for a public sector that is solution-focussed. It is for these very reasons that we established the Centre for Public Service Innovation and will continue to support their efforts to drive innovation to optimise public sector service delivery through effective and efficient innovative solutions.
MS AF MUTHAMBI, MP MINISTER FOR THE PUBLIC SERVICE AND ADMINISTRATION
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4 D E P U T Y M I N I S T E R ’ S S T A T E M E N T
This report provides a detailed account of the work carried out by the Centre for Public Service Innovation (CPSI) for the 2016/2017 financial year of government.
The CPSI is a special facility of government, one of the first in the world, with a strategic mandate of engendering the culture and practice of innovation in the public sector. This strategic mandate derives from the perspective where innovation is viewed as a major contributor towards the improvement in governance and of the public service’s performance in delivering services to the public.
The CPSI fulfils this mandate by creating a climate in which innovation is prized, encouraged, rewarded, implemented and mainstreamed. This has far-reaching positive consequences in terms of cost-effective usage of government’s resources. In this period of low growth and growing demand, innovation becomes the life-blood of the public sector and, as so well articulated in the National Development Plan (NDP), the driving force towards a healthy economy.
In carrying out this extensively crucial work, the CPSI relies on its research capacity and experience and the extensive diagnostic work that underpins NDP and other public sector reports to identify areas of concern in the service delivery value chain and to respond accordingly with prototypes, innovative processes, models and replication.
The CPSI plays a critical role within our National System of Innovation by bridging the gap between science and technology innovations and the service delivery, administration and governance context.
In line with the NDP’s call for the strengthening of inter-governmental relations, the CPSI serves the whole of government. This importantly, ensures that an enabling environment in which innovation can thrive, is not defined by departmental boundaries, but happens throughout the three spheres of our government. Collaborative efforts go a long way in maximising the impact of innovation in yielding effective and efficient solutions that would ensure impartial and equitable access to vital government services.
Amongst the many institutions that the CPSI continues to work in close partnership with is The Innovation Hub. The Innovation Hub provides unique spaces for high-tech entrepreneurs, emerging and established businesses, academics, researchers and funders or venture capitalists to meet, network and collectively work towards growing the South African economy through innovation. The Innovation Hub is also within close proximity with various government departments, notably, the Department of Science and Technology. With innovation in technology as one of their five main programme pillars, the Department of Science and Technology has made it its mandate to increase the well-being and prosperity of South Africans through science, technology and innovation.
Innovation should ultimately become a touchstone in our transformative approach to overhaul the state in its various systems, its structural configuration, and its operational and business models.
The CPSI carries a major responsibility to change the mind-sets of public servants and instill in them a self-challenging attitude by building a cadre of effective and innovative leaders that are creative and responsible risk takers. This in part reinforces a government-wide approach and a commitment in building a solution-focussed
We recognise the in f luence that the CPSI has in t rans forming the psyche and work-e thic o f the publ ic serv ice
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public sector, where innovation serves as an enabler and catalyst for the improvement of service delivery to citizens. Most of all, it ensures that innovation remains relevant by making a difference where it matters, targeting critical areas such as poverty alleviation, quality basic education, Health and safety and security.
We recognise the influence that the CPSI has in transforming the psyche and work-ethic of the public service in harnessing innovation to cost-effectively solve our contemporary challenges in service delivery in the present economic climate. The CPSI plays a critical role to help the public sector to appreciate the value of innovation as a key enabler of improved service delivery and governance. South Africa compares favourably with other developing nations.
Central to this process of transforming the public service is fostering and maintaining the principles of good governance, transparency and accountability. These constitute the key tenets of a sound democratic state that values its citizens and opens itself to their opinions and voices. Citizens can play a decisive role in helping government arrive at key decisions pertaining to its functions, its policy and legislative position, its regulatory and administrative approach, the basket of services it delivers to its citizens and how it does that.
Open government can encourage active citizenship which can potentially lead to new avenues of innovative ideas and solutions. South Africa, together with a network of over 600 reformers from across the continent and globe, is committed to entrenching sustainable development in the continent through the Open Government Partnership (OGP).
The OGP, an international voluntary effort to improve government performance and encourage civic participation provides a platform for reformers committed to making their governments more open, accountable, and responsive to citizens. The work of the OGP is premised on the grand challenges of improving public service, increasing public integrity, more effectively managing public resources, creating safer communities and increasing corporate accountability.
Of critical importance, we commend the CPSI for the work that it continues to execute on the international platform such as the UNPAN to promote the African agenda and share strategies for deepening best practices and lessons learnt to move Africa forward.
We profoundly congratulate the CPSI for its immense contribution in driving innovation and stimulating creativity and forward-thinking in the public sector. As we continue relentlessly on our transformative journey to improve the public sector’s performance and productivity, we will continue to look up to the CPSI for practical solutions that will ramp up government’s contribution towards economic and social development in our country.
MS D. LETSATSI-DUBA, MP DEPUTY MINISTER FOR THE PUBLIC SERVICE AND ADMINISTRATION
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5 R E P O R T O F T H E A C C O U N T I N G O F F I C E R
OVERVIEW OF THE OPERATIONS OF THE ORGANISATION
This annual report reviews the work that the CPSI carried out during the financial year 2016/17 as part of the fulfilment of the Minister for Public Service and Administration’s mandate to build a capable, development-oriented public service, as envisaged in the National Development Plan (NDP).
In an era where innovation has become the main driving force for economic and social development, the CPSI’s contribution in driving innovation in the public sector clearly positions the organization as a strategic role-player with a highly indispensable and relevant government-wide impact. This mandate clearly sums up what constitutes the reason and purpose of our existence or raison d’être, which is to improve and optimize citizens’ access to vital government services through innovation.
It is for this purpose that the CPSI continues to leverage various programmes as outlined in its strategic plan, to positively influence the uptake and adoption of innovation as an enabler and critical ingredient of improved service delivery to citizens.
During the financial year under review in this report, we continued where we left off the previous year in pursuing our strategic decision. We undertook to hold workshops with leaders in various sectors with the intention to empower them to lead in the embracement of innovation as a vehicle for service delivery enhancement.
We facilitated four sector-specific workshops with a total of 130 Hospital CEOs and Clinical Managers in Limpopo, Mpumalanga and KZN. These workshops helped in exposing them to various health innovations with proven excellence in health care provision. The ultimate purpose was to encourage the replication and mainstreaming of these innovations within the Health Sector. We also held a Workshop with the Department of Home Affairs mainly to rekindle innovation and creativity, particularly amongst young officials in the department and to encourage them to participate in exploring plausible solutions to service delivery challenges in their work stream. Our intention is to hold more workshops with other sectors such as Education and Finance during the 2017/18 financial year.
None other than the CPSI can vouch for the unassailable role that innovation plays in driving service delivery improvement. However, at the same time and of critical importance, we are aware of the pressing need for such projects which are innovative in nature to be replicated elsewhere where similar challenges exist. This prevents unnecessary wastage of valuable government resources through reinvention of the wheel.
During 2016/17 we continued on our programme to replicate innovative solutions unearthed through the Annual Public Sector Innovation Awards Programme and other platforms at our disposal. Top of our priorities was the Saving Blood, Saving Lives project from Edendale Hospital (KZN), which saved the hospital a record R16 million in the first three years of its introduction through efficient use of blood and blood products to eliminate wastage.
Through the CPSI’s facilitation, the project was replicated at various other hospitals in Gauteng including the Far East Rand hospital and Leratong Hospital with impressive results. Other sites targeted for the following financial year include Tembisa and Pholosong Hospitals.
Our Mult i -Media Innovat ion Centre (MMIC) remains a cr i t ical p lat form for entrenching innovat ive pract ices in the publ ic sec tor
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The Saving Blood, Saving Lives project demonstrates the criticality and relevance of the work of the CPSI in supporting the achievement of government’s priorities which have also been highlighted in the NDP, namely the provision of better healthcare to citizens. As a Government Component, we are obliged to align our work to government priorities by ensuring that we apply innovation to respond to the needs of citizens. The Saving Blood, Saving Lives project became the first recipient of the GEMS Health Award during the 2016 CPSI Innovation Awards Programme.
During the 2016/17 financial year, working in partnership with the Departments of Community Safety and Education, we continued with the replication of the Memeza Community Alarm Project. This crime prevention solution was installed in twenty three no-fee schools in Gauteng. The solution supports government’s crime fighting initiative that connects households and schools to sector policing vehicles, police stations and community police forums for quicker response time to incidents of crime. More than one thousand five hundred homes, small businesses and schools are now linked to 20 police stations through the Memeza crime prevention project. As a result, the project is having a phenomenal impact in ensuring security and crime prevention in vulnerable communities around South Africa.
In championing the course for innovation in the public sector we discover, promote and celebrate innovative solutions. For that reason, the Annual CPSI Public Sector Innovation Awards Programme remains one of our most crucial programmes to reveal the abundance of already implemented innovative projects in the public sector. In the 14th Annual CPSI Public Sector Innovation Awards Programme held during the year under review, a total of 16 finalist innovative projects from various public sector institutions were nominated, by our independent
panel of adjudicators and duly awarded for their innovative contribution towards the improvement of service delivery. The coveted 2016 Innovator of the Year title went to the Limpopo Provincial Treasury for their Revenue Enhancement Strategy Project. This is a revenue generation project that is aimed at cultivating a new approach towards revenue collection and management in government departments to address service delivery gaps. In this way, this Awards Programme has become a major contribution towards the building a capable development-oriented government through innovation.
In August last year, for the 11th year in succession, we successfully hosted the CPSI’s Annual Innovation Conference on behalf of the Minister for Public Service and Administration. Since its inception, this conference has grown into an unassailable public sector platform that brings together delegates from government, industry, academia and civil society to deliberate and share experiences on more effective ways of maximizing and improve service delivery through innovation. Even more pleasing, the CPSI Innovation Conference continues to draw international delegates from neighbouring SADC countries such as Namibia and even further afield from China.
During the 2016/17 financial year, we achieved our target of publishing 2 editions of Ideas that Work: The South African Public Sector Innovation Journal. This journal is an important compendium or resource for valuable case studies, projects and academic articles that promote service delivery innovation. The journal is an important platform to entrench information sharing and learning for an informed and empowered public sector, including researchers in academic institutions. The journal is disseminated throughout the public sector in the country and internationally.
On behalf of South Africa as a UN Member State, the
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CPSI continues to serve as an Online Regional Centre for the United Nations Public Administration Network (UNPAN), to strengthen regional integration in line with Outcome 11. In this regard, the CPSI supported the UNPAN Annual Capacity Building Workshop in partnership with the UNDP to enhance the participation of SADC member states in the Network and its activities to achieve Sustainable Development Goals. We successfully coordinated the 2016 (4th) All Africa Public Sector Innovation Awards Programme on behalf of the African Union, as a contribution towards achieving Agenda 2063. This culminated in a ceremony held in Addis Ababa in December 2016 to celebrate Africa’s successful public sector innovations that improve service delivery.
Our Multi-Media Innovation Centre (MMIC) remains a critical platform for entrenching innovative practices in the public sector. It also serves as a critical tool to interrogate service delivery challenges and to undertake process mapping.
Amid this tight and hectic schedule, we never lost sight of the importance of maintaining good governance and clean administration. During the year under review, we continued to tighten on our policy frameworks, being a growing Government Component. Most importantly we ensured that we put them to practice spurred on by the clean audit that we so proudly received for the 2015/16 financial year.
OVERVIEW OF THE FINANCIAL RESULTS OF THE DEPARTMENT:
Departmental receipts
Departmental receipts for 2016/17 were generated from commission on insurances. Due to the nature of the activities carried out by the CPSI, the organisation is not required to collect revenue as a core function.
Departmental Receipts
2015/16 2016/17
EstimateR’000
Actual Amount
CollectedR’000
(Over)/Under
CollectionR’000
EstimateR’000
Actual Amount
CollectedR’000
(Over)/Under
CollectionR’000
Tax revenue
Sales of goods and services other than capital assets
2 2 - 3 3 -
Total 2 2 - 3 3 -
Programme Expenditure
Voted Funds Programme
2015/16 2016/17
Final Appropriation
R’000
Actual Expenditure
R’000
(Over)/Under
ExpenditureR’000
Final Appropriation
R’000
Actual Expenditure
R’000
(Over)/Under
ExpenditureR’000
1 Administration 14 012 13 344 668 18 279 17 909 370
2 Public Sector Innovation
14 991 14 711 280 13 815 13 498 317
Total 29 003 28 055 948 32 094 31 407 687
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The CPSI’s actual expenditure for the period under review amounted to R31.407 million of the allocated amount of R32.094 million (i.e. 97.9 per cent of the total budget).
During the 2016/17 financial year, the CPSI had a vacant post; Deputy Director: Financial Management and Administration on salary 11, which resulted in underspending of R241 000 in the year under review. The process to fill the post was at an advanced stage at the end of the 2016/17 financial year, to be filled in the 2017/18 financial year.
An amount of R72 000 was unspent at year end, due to uniforms which were ordered for security and cleaning personnel but not delivered by 31 March 2017. These were only delivered and paid for in April 2017.
The budgeted payment to The Innovation Hub could not be processed, because the process of identifying and developing a possible solution for the Department of Home Affairs’ posted challenge was not concluded. In addition, the banking details of one supplier were not verified on the National Treasury’s Central Supplier Database by 31 March 2017 resulting in payment being made in April 2017. These mainly resulted in an underspending of R280 000 in Programme 2: Public Service Innovation.
The CPSI received donor funding from the European Union valued at R2.391 million, an amount of R750 000 from The Kingdom of the Belgium Government and an amount of R4.698 million from the Canadian Government for additional capacity, piloting and replication of innovative solutions. The funding received from the Canadian Government in January 2017 remained unspent at year-end, as the conceptualisation documents and approaches were unfinalized.
Virements/roll overs
During March 2017, the Accounting Officer approved the following virement:
o Funds amounting to R608 000 were moved from Programme 2: Public Service Innovation to Programme 1: Administration for compensation of employees. One post was re-allocated on the organisational structure from Programme 2 to Programme 1, which required the funding to be moved accordingly.
The Chief Financial Officer has assessed the overall expenditure of the organisation in order to recommend the appropriate movement of funds within programmes and sub-programmes and within the organisation’s appropriation.
Departmental Receipts
2016/17
Adjusted Appropriation
Shifting of Funds Virement Final Appropriation
R’000 R’000 R’000 R’000
1 Administration 17 671 - 608 18 279
2 Public Sector Innovation
14 423 - (608) 13 815
Total 32 094 - - 32 094
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FUND SHIFT PER ECONOMIC CLASSIFICATION
The under spending in the Compensation of Employees classification was due to delays in the filling of vacant posts in the Organisation. These funds were utilised to fund other critical areas in the Goods and Services and Payment for Capital Assets classifications. These areas included the development of a Disaster Recovery Plan; the Wi-Fi access points and LAN redesign, procurement
of a new server, an uninterrupted power supply (UPS), additional furniture and equipment for the MMIC and unexpected expenditure relating to the Ministerial hand-over of the E-learning project in Eastern Cape.
In addition, leave gratuities were paid in relation to a deceased employee. It was therefore, necessary to shift funds from Compensation of Employees to Transfers and Subsidies: Households in Programme 1: Administration.
Departmental Receipts
2016/17
Adjusted Appropriation
Shifting of Funds Virement Final Appropriation
R’000 R’000 R’000 R’000
Compensation of employees
16 792 (912) - 15 880
Goods and services
15 233 (1 356) - 13 877
Transfers and subsidies
- 1 - 1
Payments for capital assets
69 2 267 - 2 336
Total 32 094 - - 32 094
Roll oversNo additional funding was received from roll over funding during the year under review.
• Unauthorised, Fruitless And Wasteful Expenditure
During the 2016/17 financial year the CPSI did not incur any unauthorised or fruitless and wasteful expenditure.
• Public Private Partnerships
The CPSI did not participated in any Public Private Partnerships during the 2016/17 financial year.
• Discontinued activities / activities to be discontinue
No activities were discontinued or are to be discontinued.
• New or proposed activities
There are no new or proposed activities.
• Supply Chain Management
During the 2016/2017 financial year, the CPSI did not receive nor conclude any unsolicited bid proposals. All SCM processes and systems are in place in the Organisation. There are approved Supply Chain Management and an Asset Management and Disposal policies which are fully implemented and compliance is closely monitored.
Bid Committee structures, such as the Bid Specification Committee, Bid Evaluation Committee and the Bid Adjudication Committee are fully functional in line with the National Treasury guidelines on Supply Chain Management. These committees fulfil the role of compliance monitoring within the procurement process in terms of Treasury prescripts as well as internal organisational policies.
All Supply Chain Management Practitioners and Bid Adjudication Committee members have signed a Code of Conduct whereby, to the extent required by their position, they should declare any business, commercial and financial interests or activities undertaken for financial gain that may raise possible conflict of interest.
The CPSI uses procurement checklists aimed at preventing irregular expenditure which are continuously revised within the Supply Chain
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Management environment.
• Gifts and Donations received in kind from non-related parties
• Sponsorships in kind valued at R610 000 from four organisations, were received towards the hosting of the Annual CPSI Public Sector Innovation Awards Programme.
• A sponsorship in kind valued at R235 000 was received towards the hosting of the 6th Annual SADC UNPAN Workshop.
• An amount of R31 000 was received towards the Annual Public Sector Innovation Conference, from one organisation.
• An amount of R377 000 was received towards the hosting of four sector specific workshops.
• Sponsorships in kind valued at R60 000 from two organisations were received towards payment of traveling expenses.
• Exemptions and deviations received from the National Treasury
No exemptions and deviations were requested from the National Treasury by 31 March 2017.
• Events after the reporting date
None
• Other None
• Acknowledgement
In conclusion, I would like to thank the Minister and the Deputy Minister for the Public Service and Administration for their astute leadership. Through their support and guidance and of course their confidence in us, we were able to continue to forge ahead to entrench the culture and practice of innovation in the public sector which is critical in service delivery improvement.
I present this report as the final outcome of the work of a dedicated team who share the passion and commitment to drive innovation in the public sector as a key enabler for improved citizen access to vital government services.
Approval and sign off
MS THULI RADEBEEXECUTIVE DIRECTOR: CPSI
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 1 8
To the best of my knowledge and belief, I confirm the following:
• All information and amounts disclosed throughout the annual report are consistent.
• The annual report is complete, accurate and is free from any omissions.
• The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury.
• The Annual Financial Statements (Part E) have been prepared in accordance with the modified cash standard and the relevant frameworks and guidelines issued by the National Treasury.
• The Accounting Officer is responsible for the preparation of the annual financial statements and for the judgements made in this information.
• The Accounting Officer is responsible for establishing and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements.
• The Auditor General is engaged to express an independent opinion on the annual financial statements.
• In my opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the CPSI for the financial year ended 31 March 2017.
Yours faithfully
MS THULI RADEBEEXECUTIVE DIRECTOR: CPSI
6 S T A T E M E N T O F R E S P O N S I B I L I T Y A N D C O N F I R M A T I O N O F A C C U R A C Y F O R T H E A N N U A L R E P O R T
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7 S T R A T E G I C O V E R V I E W
7.1. Vision
A solution-focussed effective and efficient Public Sector through Innovation
7.2. Mission
The Centre for Public Service Innovation (CPSI) aims to entrench the culture and practice of innovation in the publicservice through:
o Unearthing existing innovations for learning and replication; o Researching, leading and promoting the development and testing of new innovations; o Investigating and facilitating the replication and mainstreaming of innovations, and o Providing content driven platforms and products for public officials to adopt innovative approaches.
7.3. Values
The CPSI’s strategic direction is guided by the following values:
o Nurturing: The CPSI supports and encourages public sector institutions in their efforts to innovate, from unearthing innovative initiatives to replication and mainstreaming.
o Recognition: The CPSI publicly recognises and rewards innovators and innovative institutions to acknowledge their contribution towards the improvement of service delivery and for further replication.
o Partnering: The CPSI values partnerships with other public sector entities, the private and non-governmental organisation (NGO) sectors, the South African National System of Innovation (NSI) and key global role players within the space of public sector innovation.
o Compassion and empathy: The CPSI endeavours to respond to the needs of the citizens by addressing the root causes of service delivery failures in an empathetic manner.
o Efficiency and effectiveness: Efficiency and effectiveness remain core drivers for public sector innovation.
o Knowledge sharing: The CPSI applies the principles of a learning organisation through its innovation practices, platforms and programmes.
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8 L E G I S L A T I V E A N D O T H E R M A N D A T E S
The responsibility for public sector innovation is vested in the Minister who, in terms of section 3(1)(i) of the Act, is responsible for establishing norms and standards relating to transformation, reform, innovation and any other matter to improve the effectiveness and efficiency of the public service and its service delivery to the public.
The CPSI is:• Providing the Minister with independent, diverse,
and forward-looking research findings and advice on innovative service delivery with a specific focus on government’s priorities.
• Enhancing public service transformation and reform through innovation partnerships and projects.
• Supporting the creation of an enabling environment for innovation within the structures and agencies of the South African government (encouraging, learning and rewarding).
The function of the CPSI is thus to entrench a culture and practice of innovation in the public service through-
• advancing needs-driven research and development ; • unearthing, demonstrating, sharing on, encouraging
and rewarding innovation;• testing, piloting, incubating new innovations and
supporting the replication of innovative solutions; and
• partnering with public, private, academic and civil society sectors on supporting the mandate of the CPSI.
9 O R G A N I S A T I O N A L S T R U C T U R E
Minister for PublicService and
Administration
Ms AF Muthambi, MP
Executive Director: CPSI
Ms Thul i Radebe
Deputy-Minister forPublic Service
and Administration
Ms D. Letsats i -Duba, MP
Chief FinancialOfficer
Ms Annette Snyman
CD: Research and Development
Mr Pierre Schoonraad
CD: Solution Support and Incubation
Mr Lindani Mthethwa
CD: Enabling Environment
Ms Lydia Phalwane
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1 0 E N T I T I E S R E P O R T I N G T O T H E M I N I S T E R
The following entities fall within the portfolio of the Minister for the Public Service and Administration:o Department of Public Service and Administration;o National School of Government;o Office of the Public Service Commission; ando Government Employee Medical Scheme.
The CPSI has no oversight role over any entity reporting to the MPSA. The Organisation received its annual appropriation by means of a transfer from the Department of Public Service and Administration. The CPSI has a related party relationship with these entities. During the period under review all transactions entered into with these entities were at arm’s length. No CPSI officials disclosed related party transactions with any of the entities reporting to the Minister.
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PA R T B : P E R F O R M A N C E I N F O R M A T I O N
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1 A U D I T O R G E N E R A L’ S R E P O R T: P R E D E T E R M I N E D O B J E C T I V E S
2.1 Service Delivery Environment
The current global volatile economic environment, a low-growth national economy and a more demanding citizenry have placed severe constraints on the national budget. Public sector institutions are therefore forced to become more innovative in responding to citizens’ needs. In this regard, the National Development Plan (NDP) requires that “Innovation across state, business and social sectors should start to become pervasive”. Innovation should also focus on improved public service delivery and on goods and services aimed at low-income sectors, as indicated in the NDP. The CPSI therefore identified the following outcomes of government’s 2014-2019 Medium Term Strategic Framework which must contribute to the achievement of the vision as set out in the NDP:
o Access to quality basic education o Health Accesso Reduction of Crimeo SA’s support to SADC, Africa and South-
South cohesiono Effectiveness, efficiency, development
oriented public service
These outcomes are addressing systems, procedures and processes in relevant sectors. CPSI partners with various sectors, including Health, Safety and Security and Education to deliver on MTSF targets.
The CPSI operates within the National System of Innovation driven by the Department of Science and Technology to bridge the gap between science and technology innovation and service delivery innovation.
2 OVERVIEW OF DEPARTMENTAL PERFORMANCE
The CPSI fulfils its mandate by creating a climate in which innovation is prized, encouraged, rewarded, implemented and mainstreamed. In response to the mandate set by the Act, the vision and mission of the CPSI recognises that innovation is one of the critical ways that we can leverage upon to ensure that the public sector can deliver value for money in terms of quality services.
2.2 Service Delivery Improvement Plan
The CPSI assists service delivery government institutions to improve their service and continuously challenge their service standards. The CPSI thus functions in a niche environment with a specific focus on innovation to improve service delivery. As such, the focus is on those persistent sector specific challenges which are not being solved by the current solutions and where the root causes of service delivery failures or poor performance are not linked to management-related inefficiencies.
The CPSI empowers and enthuses public officials to push boundaries and challenge the status quo to find innovative solutions to their everyday service delivery challenges. This is done through platforms and products including the Public Sector Innovation Awards Programme, the Public Sector Innovation Conference, the Multi-Media Innovation Centre and Ideas that Work: The South African Public Sector Innovation Journal.
2.3 Organisational environment
The CPSI’s organisational structure has 31 posts on its fixed establishment and another four donor funded posts additional to the establishment. As at 31 March 2017 three posts on the fixed establishment were vacant. From 2011/12 to 2016/17 there has been an increase by eight posts on the fixed establishment. This increase
The Auditor General of South Africa (AGSA) performed the necessary audit procedures on the performanceinformation in order to provide limited assurance of performance against predetermined objectives in the formof an audit conclusion. The audit conclusion is included in the report to management under the PredeterminedObjectives heading in the Report on other legal and regulatory requirements section of the AGSA management report. Refer to pages 84 - 86 of the Audit Report of the Auditor General, published as Part E: Financial Information.
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was mainly due to the establishment of a Corporate Service Unit for the CPSI. The CPSI does not have a high staff turn-over rate, which contributes very positively to organisational stability.
However, the Organisation’s resources are mainly allocated to Programme 1: Administration in order to comply with all the statutory requirements as set out in the Public Service Act, Public Service Regulations, Public Finance Management Act and all other applicable legislation.
The work of the CPSI increased substantially over the period under review. In order for the CPSI to sustain the replication and piloting of service delivery innovation projects and to adhere to the compliance areas allocated to a department, the CPSI must find alternatives to mitigate the impact of limited human and financial resources on the organisation’s mandate. Furthermore, the CPSI mitigates the impact by
prioritising and focusing on specific areas that have a potential for maximum impact on service delivery.
Although the National Treasury’s Cost Containment initiative has limited the ability of the CPSI to respond to the demands from departments, it has also provided an additional impetus for innovation. In this regard, the CPSI has introduced a new category in the Annual CPSI Public Sector Innovation Awards, namely “Innovative Solutions Reducing the Cost of Delivering Services.” In the coming years replicable finalist projects from this category will be supported for further replication.
2.4 Key policy developments and legislative changes
No new policy developments or legislative changes affected the CPSI’s operations during the period under review.
In the Strategic Plan for 2015/19 the CPSI identified the following strategic outcome oriented goals that are aligned to Government’s priority outcomes.
• The culture and practice of innovation entrenched for improved, effective and efficient public service delivery.
• Finding, developing and promoting replication of service delivery innovations.
These goals are achieved through:
• Testing and piloting of new innovations/prototypes. Testing and piloting provide space and risk-friendly environment for the development of innovations that have a positive impact on service delivery. This would ensure that unintended consequences are understood and mitigated in order for successful pilots to be handed over to the relevant service delivery departments.
• Creating and strengthening an enabling environment for innovation within and throughout the public sector. By growing and sharing the knowledge repository of innovative practices, tools and approaches, sectors are empowered to innovate and replicate innovations. The Multi-Media Innovation Centre (MMIC) serves as a facility where
3 STRATEGIC OUTCOME ORIENTED GOALS
departments can interrogate their own challenges and leverage the knowledge repository to find appropriate solutions. The Annual Conference provides a platform for nurturing thought leadership in public sector innovation.
• Recognising and awarding innovations. The Awards programme enables the South African public sector to unearth “hidden” solutions in our midst for replication and scaling up.
• Facilitating the replication and scaling up of appropriate local and international innovative solutions, approaches and models for sector-specific mainstreaming.
The Strategic Outcome Oriented Goals are pursued within the context of Vision 2030 and for the shorter term, as guided by the 2014 – 2019 MTSF. Therefore, when considering which challenges to be investigated, innovations to be piloted or replicated, or innovative practices to be shared, the alignment with government priorities is first and foremost.
Improved efficiencies, effectiveness and coordination were in particular achieved in the Quality Basic Education (Outcome 1), Health (Outcome 2), Safety and Security (Outcome 3), and International Cooperation
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(Outcome 11) sectors and aligned with specific MTSF sub-outcomes.
For example, the School Alarms System (safety & security): The Centre for Public Service Innovation (CPSI) received funding from Tirelo Bosha (an initiative from Belgian government) to install innovative alarm systems linked to the Community Policing Forum and local police stations in 23 no-fee schools in Gauteng and handing out 3500 personal alarms to learners. More than 20 police stations are now linked to the system. This project has also been replicated in North West and Limpopo. Through this project, we want to ensure that schools are safer and that the government ICT infrastructure which has been invested in our schools is protected.
In response to Health sub-outcomes 6 and 7 (Improved health management and leadership and Improved health facility planning and infra-structure delivery), the CPSI facilitated the replication of the Saving Blood, Saving Lives project from Edendale Hospital which was
uncovered through the CPSI Public Sector Innovation Awards programme. This ensures the efficient use of blood and blood products to eliminate wastage. Health sector specific workshops were held around the country, where health innovations were shared with hospital CEOs and clinical managers. The recognition of this project through the CPSI Awards programme created great interest in this innovation which led to its successful replication at Bertha Gxowa Hospital, Far East Rand, Tembisa, Leratong and Pholosong Hospitals where initial savings are already being reported.
The CPSI continues to serve as an Online Regional Centre, on behalf of South Africa as a UN member state, for the United Nations Public Administration Network (UNPAN) to strengthen regional integration in line with Outcome 11. In this regard, the CPSI hosted the UNPAN Annual Capacity Building Workshop in partnership with the UNDP to enhance the participation of SADC member states in the Network and its activities relating to public sector innovation and the implementation of Sustainable Development Goals.
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4 Performance Information by Programme
4.1 Programme 1: Administration
This programme provides strategic leadership, overall management of and support to the organisation
There are three sub-programmes
• Strategic Management provides administrative support to the Executive Director and co-ordinate implementation, monitoring and reporting on the organisation’s overall performance.
• Corporate Resources Management manages and monitors the provision of corporate resource management services; information communication and technology management services; security management services; office support and auxiliary services.
• Office of the Chief Financial Officer ensures compliance with all relevant financial management statutes and regulations, notably the Public Finance Management Act (PFMA) and oversees the effective Financial and Supply Chain Management of the organisation.
The strategic objectives of this programme for the year under review were as follows:- Effective Integrated Planning And Reporting- Effective Corporate Resource Management- Effective Financial Management
Strategic objectives, performance indicators, planned targets and actual achievements
During the year under review the CPSI operated in line with the approved Financial and revised Human Resource Delegations. The following internal policies were approved in the year under review:
• ICT Corporate Governance Framework;• Performance Management and Development
policy;• Asset Management and Disposal Policy; • ICT Operational Policy;• Policy and Procedure on Unauthorised, irregular,
fruitless and wasteful expenditure;• Internship Programme and Policy;• Policy and Procedure on Bereavement and
Hospitalisation; and • Whistle Blowing Policy
The 2017/18 Annual Performance Plan was approved and tabled in Parliament. This will inform the work of the organisation in the next financial year. The CPSI has a shared services arrangement with the DPSA on Auditing and Risk Management, amongst other areas, which includes the sharing of an Audit Committee.
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C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 2 8
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V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 2 9
PR
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nal
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bm
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and
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sury
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ram
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mit
one
(1
) Ad
just
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end
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and
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reas
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(1) A
dju
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ates
o
f Nat
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as
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the
DPS
A a
nd
the
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th
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--
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ieve
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nd
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No
ne
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ne
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 3 0
PR
OG
RA
MM
E 1
: AD
MIN
ISTR
ATI
ON
No
Stra
teg
ic
Ob
ject
ive
Per
form
ance
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dic
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l A
chie
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ent
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/201
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ieve
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t20
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ual
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ieve
men
t20
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016
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nned
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m p
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targ
et t
o A
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/201
7
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ons
--
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s Fi
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ial
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o t
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Aud
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Gen
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the
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reas
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ay
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he
Nat
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l Tre
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n 31
May
201
6
No
ne
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V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 3 1
PR
OG
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MM
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: AD
MIN
ISTR
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ons
Num
ber
of
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or
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Six
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• P
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Pro
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the
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agem
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and
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y•
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avel
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• C
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and
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nter
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and
Pr
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Iden
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and
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at le
ast
two
Fi
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r Su
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M
anag
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Ach
ieve
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(2) P
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app
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sset
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anag
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osa
l Po
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• Po
licy
and
Pr
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horis
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irreg
ular
, fr
uitle
ss a
nd
was
tefu
l ex
pen
ditu
re
No
ne
No
ne
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 3 2
STRATEGY TO OVERCOME AREAS OF UNDER PERFORMANCE
During the period under review all planned targets were achieved.
Changes to planned targets
Performance target - 2016/17 APP
Changes to the 2016/17 APP
Motivation for change Approval details
Quarterly performance reports submitted to the MPSA, DPSA, DPME and the National Treasury
Submit quarterly performance reports to the MPSA, DPSA, DPME and the National Treasury
Performance target was originally developed as an activity and not an indicator
Approved by MPSA on 02/03/2017Submission No. CPSI 2016/17 132
Quarterly financial reports submitted to the MPSA, DPSA and the National Treasury
Submit financial reports to the MPSA, DPSA and the National Treasury
Performance target was originally developed as an activity and not an indicator
The word quarterly was removed
Approved by MPSA on 02/03/2017Submission No. CPSI 2016/17 132
Submit the organisation’s medium term expenditure framework input to the DPSA and the National Treasury
Submit one (1) Medium Term Expenditure Framework input to the DPSA and the National Treasury
Target has been aligned to the new 2017/18 indicator. The target must be a number
Approved by MPSA on 02/03/2017 Submission No. CPSI 2016/17 132
Submit the organisation’s Adjusted Estimates of National Expenditure to the DPSA and the National Treasury
Submit one (1) Adjusted Estimates of National Expenditure to the DPSA and the National Treasury
Target has been aligned to the new 2017/18 indicator. The target must be a number.
Approved by MPSA on 02/03/2017 Submission No. CPSI 2016/17 132
Submit the organisation’s Estimates of National Expenditure to the DPSA and the National Treasury
Submit one (1) Estimates of National Expenditure to the DPSA and the National Treasury
Target has been aligned to the new 2017/18 indicator. The target must be a number.
Approved by MPSA on 02/03/2017 Submission No. CPSI 2016/17 132
Submit the Annual Financial Statements to Auditor General, DPSA and the National Treasury on 31 May 2016
Submit the organisation’s Financial Statements to the Auditor General, the DPSA and the National Treasury on 31 May
Target was not aligned with the CPSI’s Strategic Plan. The word organisation’s as it appears on the Strategic Plan was omitted in the APP and replaced with the word Annual.
The year (2016) was published in the APP but it is not in the original Strategic Plan
Approved by MPSA on 15/06/2016 Submission No. CPSI 25 2016/17
Submit the organisational procurement plan and consultancy reduction plan to the DPSA and the National Treasury
Submit the organisational procurement plan to the DPSA and the National Treasury
National Treasury practice note 1 of 2016/17 was repealed by Practice Note 2 of 2016/17 and the submission of the consultancy reduction plan is not a requirement anymore
Approved by MPSA on 02/03/2017 Submission No. CPSI 2016/17 132
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 3 3
Linking performance with budgets
Programme 1: Administration
2015/2016 2016/2017
Final Appropriation
R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’000
Final Appropriation
R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’000
1 Strategic Management
4 348 4 335 13 3 723 3 698 25
2 Corporate Resource Management
6 571 5 949 622 9 690 9 583 107
3 Office of the Chief Financial Officer
3 093 3 060 33 4 866 4 628 238
Total 14 012 13 344 668 18 279 17 909 370
4.2 Programme 2: Public Sector InnovationThis programme drives service delivery innovation in the Public Sector in line with government priorities.
There are three sub-programmes
• Research and Development establishes the knowledge base in support of the programme to inform the selection and development of potential innovative models and solutions.
• Solution Support and Incubation facilitates the testing, piloting, demonstration, replication and mainstreaming of innovative solutions for the public sector.
• Enabling Environment nurtures and sustains an enabling environment, which entrenches a culture and practice of innovation in the public sector through innovative platforms and products.
The strategic objectives of this programme for the year under review were as follows:
Identification and confirmation of challenges for targeted solutions
Objective statement: Investigation of service delivery challenges to identify solutions for possible development, adaptation, piloting and/ or replication, in partnership with the relevant stakeholders.
The CPSI has investigated three service delivery challenges with the aim to identify or develop new solutions. These challenges were:
• Department of Home Affairs service delivery reporting: The DHA has been on a modernisation journey that has led to, for example, track-and-
trace solutions, live-capturing of applicant data and significant improvements in the delivery time of Identity Documents and Passports. A major part of the current front office improvement project requires daily reporting on various aspects of front-office and back-office functionality, e.g. queues, cleanliness, working state of equipment, etc. There are a number of challenges with the current system and reporting is unsatisfactory. From a thorough investigation of the challenge, no suitable solution could be identified. It was thus agreed with the Department of Home Affairs to develop a new low-cost solution that would automate the bulk of the reporting process. The challenge was therefore posted on The Innovation Hub’s OpenIX Exchange to seek solutions from local entrepreneurs.
• Antimicrobial resistance (AMR) in State Hospitals: The escalating antimicrobial resistance (AMR) pandemic is a real global public health threat with extensive health, economic and societal implications. Antimicrobial resistance, also known as antibiotic resistance, occurs when an antibiotic has lost its ability to effectively control or kill bacterial growth. When CPSI investigated this challenge it was found that whilst therapeutic and alternative solutions are being investigated and developed, there are a number of behavioural, awareness and educational solutions that should be implemented in the health sector. Importantly, cross-sectorial awareness, protocol and policy interventions are required because one of the primary contributors to AMR is the use and abuse of antibiotics in the agricultural sector to stimulate growth in livestock. This investigation will be presented to the relevant stakeholders in the health sector.
• Co-ordinated performance reporting by public entities: A number of departments have the
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responsibility of oversight over public entities in their portfolios. The Department of Trade and Industry experienced a number of challenges relating to the reporting of the 13 entities within the portfolio, in particular reporting on performance management information. CPSI investigated the challenge and identified four potential solutions which were presented to the Department of Trade and Industry for adaptation and implementation.
Case Study Development
Objective statement: Development of case studies of selected service delivery innovations, for dissemination through the CPSI’s knowledge platforms and products.
The development and dissemination of case studies of innovative service delivery solutions remains an important aspect of promoting a culture of innovation. During the 2016/17 financial year the CPSI developed five case studies for dissemination through the CPSI knowledge platforms and products:
• Revenue Information Management System: Facing a number of reporting, accountability and auditing challenges relating to financial transactions of approximately R1.5 billion, the Gauteng Department of Roads and Transport decided to develop an in-house web-based revenue information management system. This system captures transactions from the 31 municipal centres and 259 Post Offices and it has simplified and improved the revenue management process, turnaround times and dramatically reduced audit queries. It further provides quick executive reports and ensures improved governance and transparency in our revenue management processes.
• Diepsloot Community Alarms: This pilot project, initiated by the CPSI in partnership with The Innovation Hub, SAPS and the community, demonstrated valuable lessons for cross-sectorial collaboration and how to introduce social innovations into the public sector service delivery context. The household alarm system links households with police stations, sector policing vehicles and Community Policing Forums. It reduced the police response time from 48 hours to less than 10 minutes in the piloted area.
• Foresight for Development in the SADC region: Foresight has become a critical tool in supporting the development and implementation of national development plans and international commitments such as the African Union’s Agenda 2063 and the United Nation’s Sustainable Development Goals.
The CPSI, in partnership with the UNDP has supported the development of capacity for foresight in the SADC region. This case study reflects on the importance of Foresight in a developmental context and shares lessons learnt from workshops conducted in South Africa, Malawi and Lesotho.
• Two 2016 CPSI Public Sector Innovation Awards finalist projects, namely Workplace Service Delivery of Medication and Operation Sukuma Sakhe were also written up for publication in the CPSI journal. Both projects provide valuable insights for departments on how to engage with the needs of citizens and how to take services to citizens.
Pilot, demonstrate and facilitate the replication of innovative models and solutions
Objective Statement: Piloting with service owners, demonstration to public servants, and facilitation of replications, in identified sectors, of innovative models and solutions that improve service delivery.
Pilot projects
Hospitals as Innovation Hubs: Bertha Gxowa Hospital
In her budget vote 2016, the MEC for Health in Gauteng highlighted that hospitals must be innovative in order to address service delivery. She stressed that hospitals should be Innovation Hubs for the health sector to ensure they provide quality services. Based on this, Bertha Gxowa hospital requested the CPSI to assist it in re-engineering their services so as to improve service delivery to their citizens.
In the 2016/17 financial year, the CPSI assisted Bertha Gxowa Hospital to set up an Innovation Hub. One of the elements of the Innovation Hub is the Pharmacy Improvement Project which was implemented to assist the hospital to comply with sectoral National Core Standards. The Pharmacy Improvement Project included retraining of pharmacy personnel in partnership with the Netcare Group, on time management, establishing a patient file drop box at the pharmacy and setting up a Pharmacy Helpdesk. This project assisted in the reduction of queues and waiting times for patients. Another element of the Innovation Hub is the establishment of the Bertha Gxowa Recognition Awards Programme as part of entrenching the culture and practice of innovation within the hospital.
V O T E N O 4 7 A N N U A L R E P O R T
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Helen Joseph Energy Efficiency Project
The CPSI continued the monitoring of energy patterns of the hospital in partnership with the hospital management and the Gauteng Department of Infrastructure Development. This long-term project selectively introduce technical and behavioural interventions to reduce the energy consumption of the hospital. Energy consumption is measured and compared to billing and usage patterns in order to explore the most effective interventions. Replication projects
The CPSI continued to facilitate the replication of innovative solutions unearthed through its Annual Public Sector Innovation Awards and other programmes.
The Saving Blood, Saving Lives project: The project innovatively ensures the efficient use of blood and blood products by medical staff and thus eliminates wastage. Following the sector-specific workshop conducted with Hospital CEOs and Clinical managers, where numerous health innovations were shared, more Gauteng hospitals approached the CPSI to facilitate the replication of this solution in their institutions.
In the 2016/17 financial year, this solution was subsequently replicated at various hospitals in Gauteng, namely, Bertha Gxowa Hospital where about R117 671 was saved between June 2016 and February 2017; Far East Rand hospital where R180 000 was saved between November 2016 and February 2017; and Leratong Hospital with estimated savings of R42 000 per month since November 2016. What is significant in terms of this project is that it allows these institutions to use the savings to address other service delivery challenges within their sites.
High Volume Cataract Project
In addition to the abovementioned project, the CPSI further facilitated the replication of the High Volume Cataract Project, another Public Sector Innovation Awards finalist, at Bheki Mlangeni Hospital in partnership with Chris Hani Baragwanath Hospital. This project ensures the efficient use of a theatre to double the number of cataract operations to assist in reducing a backlog of about 4000 eye operations at the Chris Hani Baragwanath Hospital.
Schools Alarm Systems
The CPSI further facilitated the replication of a crime prevention solution in 23 no-fee schools in Gauteng,
in partnership with the provincial departments of Community Safety and Education as well as SAPS. The solution connects these schools to sector policing vehicles, police stations and Community Policing Forums (CPFs) for quicker response time to incidents of crime. In addition, three thousand five hundred (3 500) personal alarms have also been distributed to learners in these schools to help protect them from personal attacks between home and the schools.
Innovation knowledge programmes, products and platforms
Objective statement: Promoting a culture of innovation in the public sector to enhance service delivery through sustaining and managing knowledge programmes, products and platforms. In 2016 the CPSI took a strategic decision to launch a series of workshops that target the leadership of sectors to ensure that innovation is embraced as a vehicle for service delivery enhancement. As part of this drive, the CPSI conducted four sector-specific workshops for 130 Hospital CEOs, Clinical Managers and other Health Officials in Limpopo, Mpumalanga and KZN where numerous health innovations, unearthed through the Annual Public Sector Innovation Awards Programme, were shared. The purpose of the workshops was to encourage the replication and mainstreaming of implemented public sector innovations within the Health Sector.
Furthermore, another innovation workshop was conducted for the Department of Home Affairs to introduce and encourage staff, particularly young people who have innovative ideas and solutions, to submit them to the department for consideration and possible adoption.
The CPSI’s Annual Innovation Conference has become the biggest community of practice or forum for the public sector which draws delegates from all three spheres of government as well as the private, academic and non-governmental sectors. In 2016 the conference drew delegates from SADC countries and as far as the People’s Republic of China. During the Ministerial Roundtable within the conference, the Minister for Public Service and Administration and Minister for Telecommunications and Postal Services engaged the delegates on the need for and the critical role of innovation in improving service delivery.
The 2016 Public Sector Innovation Awards Programme launched on 7 April 2016 in the Free State Province was attended by officials from all spheres of government. In
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2016 sixteen projects were recognized and awarded for their innovative solutions to improve service delivery, including the Limpopo Provincial Treasury’s Revenue Enhancement Strategy Project which was awarded the coveted 2016 Innovator of the Year title. This project is an example of how departments can enhance revenue generation in the current dwindling equitable share. The
CATEGORY A: INNOVATIVE SOLUTIONS REDUCING THE COST OF DELIVERING SERVICES
Name of the project Province
Saving Blood, Saving Lives Winner KwaZulu Natal
Amputee Patient Care 1st Runner -up KwaZulu Natal
Cable Theft Prevention 2nd Runner - up Free State
Energy Saving Project 3rd Runner -up Western Cape
CATEGORY B: INNOVATIVE USE OF ICT’s FOR EFFECTIVE SERVICE DELIVERY
Name of the project Province
RAF Electronic Queue Management System Winner National
CapeFarmMapper 1st Runner -up Western Cape
E-learning for Health 2nd Runner - up Western Cape
CATEGORY C: INNOVATIVE SERVICE DELIVERY INSTITUTIONS
Name of the project Province
Contractor Development Winner Free State
Agriculture Rural Youth Development 1st Runner -up Western Cape
Early Childhood Disability Intervention 2nd Runner -up KwaZulu Natal
Patient Flow Management 3rd Runner -up Western Cape
CATEGORY D: INNOVATIVE ENHANCEMENTS OF INTERNAL SYSTEMS OF GOVERNMENT
Revenue Enhancement Strategy Winner Limpopo
Chronic Disease Management Highway 2nd Runner -up Western Cape
Hospital Waste Management 3rd Runner -up Western Cape
E-learning for Health 2nd Runner - up Western Cape
SPECIAL MINISTERIAL AWARD
Ngwanamago Primary School - Limpopo
Department of Education - Gauteng
GEMS HEALTH AWARD
Saving Blood, Saving Lives
CPSI is committed to sharing this innovation with other provincial treasuries and municipal finance managers to ensure that as many departments as possible benefit from this innovation.
The following are finalists and the category winners in the 2016 Public Sector Innovation Awards Programme:
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PUBLIC SECTOR INNOVATOR OF THE YEARRevenue Enhancement Strategy, Provincial Treasury, Limpopo
The Challenge
The Limpopo share of total revenue was assessed and found to be very low at 1.4 percent, in the 2012/13 collection. The decline of national share for Limpopo Province, Provincial Treasury considered it necessary to improve collection of own revenue to augment equitable share.
The Innovation
The project has enhanced communication between the Limpopo Provincial Treasury, and provincial departments and public entities. It refocuses attention from spending to revenue generation and links revenue generation to service delivery. The programme Introduced a revenue enhancement strategy by identifying new revenue streams which benefits service delivery. Ring-fence funds for revenue generation projects and systems that have potential for generating more revenue. Site visits to departments to assess revenue information systems (e.g. patient billing systems) then avail funds to upgrade these systems leading to higher revenue collection and better service delivery. Revenue collected allocated to departments (e.g. Health, Education, Infrastructure development) to improve service delivery.
The Impact
Before the implementation of the programme, the revenue base of the province ranged from R512.0 million in 2011/12 to R550.5 million in the 2012/13 financial year. The Revenue collection after implementation of the strategy increased in the 2013/2014 financial year to R845 million and R1.42 billion in the 2014/2015 financial year
• The following are examples of service delivery projects that were part of the strategy:- Improved patient billing system - improves efficiency - Improved infrastructure of wild life resorts –job creation while generating revenue- Opening of multipurpose centres (unused office spaces) for registration/ licensing of vehicles to
minimise paying commission to municipalities (20%).
During the period under review the CPSI published two editions of Ideas that Work: The South African Public Sector Innovation Journal for public sector wide learning and replication. This Journal serves as a repository of public sector innovations and is used by many to kick-start innovations in their respective sectors as well as academic institutions in their public administration and other teaching programmes.
Participating in regional and international innovation programmes for learning, sharing and profiling of South African innovations to strengthen good governance initiatives
In June 2016 the CPSI hosted the UNPAN Annual Capacity Building Workshop in partnership with the UNDP to enhance the participation of SADC member states in the Network and its activities relating to public sector innovation and the implementation of Sustainable Development Goals.
The CPSI successfully coordinated the 2016 (4th) All Africa Public Sector Innovation Awards Programme on behalf of the African Union, as part of the efforts towards achieving Agenda 2063. This culminated in a ceremony held in Addis Ababa in December 2016 to celebrate and recognise Africa’s successful public sector innovations that improve service delivery.
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PR
OG
RA
MM
E 2
: PU
BLI
C S
EC
TOR
INN
OV
ATI
ON
No
Stra
teg
ic
Ob
ject
ive
Per
form
ance
In
dic
ato
rA
ctua
l A
chie
vem
ent
2013
/201
4
Act
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ieve
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t20
14/2
015
Act
ual
Ach
ieve
men
t20
15/2
016
Pla
nned
tar
get
2016
/17
Act
ual
Ach
ieve
men
t20
16/2
017
Dev
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on
fro
m p
lann
ed
targ
et t
o A
ctua
l A
chie
vem
ent
for
2016
/201
7
Co
mm
ent
on
dev
iati
ons
2.1
To in
vest
igat
e se
rvic
e d
eliv
ery
chal
leng
es t
o
iden
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solu
tions
fo
r p
oss
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d
evel
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t,
adap
tatio
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pilo
ting
and
/ o
r re
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n,
in p
artn
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ip
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the
rele
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st
akeh
old
ers
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ber
of
spec
ific
serv
ice
del
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y ch
alle
nges
in
vest
igat
ed
to d
eter
min
e ro
ot
caus
es a
nd
iden
tify
po
ssib
le
solu
tions
--
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e (3
)se
rvic
e d
eliv
ery
chal
leng
es
inve
stig
ated
, p
oss
ible
so
lutio
ns
iden
tified
and
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vest
igat
ive
Rep
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d
evel
op
ed a
nd
app
rove
d b
y th
e E
D:
• R
at in
fest
atio
n in
info
rmal
se
ttle
men
ts
and
sta
te
faci
litie
s su
ch
as p
riso
ns•
Long
q
ueue
s an
d
ove
rcro
wd
ing
in
ho
spita
ls•
Was
te
Man
agem
ent
in h
osp
itals
At
leas
t th
ree
serv
ice
del
iver
y ch
alle
nges
in
vest
igat
ed a
nd
po
ssib
le s
olu
tions
id
entifi
ed
No
t A
chie
ved
Thre
e (3
) se
rvic
e d
eliv
ery
chal
leng
es
inve
stig
ated
, p
oss
ible
so
lutio
ns
iden
tified
for
two
o
f the
cha
lleng
es
and
Inve
stig
ativ
e R
epo
rts
wer
e d
evel
op
ed a
nd
app
rove
d b
y th
e E
D:
• D
TI re
po
rtin
g
and
p
erfo
rman
ce
man
agem
ent
of e
ntiti
es
inve
stig
ated
an
d p
ote
ntia
l so
lutio
ns
iden
tified
• A
ntib
iotic
re
sist
ance
in
the
heal
th
sect
or
Inve
stig
ated
an
d p
ote
ntia
l so
lutio
ns
iden
tified
• D
epar
tmen
t o
f H
om
e A
ffairs
R
epo
rtin
g T
oo
l fo
r fr
ont
line
se
rvic
e d
eliv
ery
inve
stig
ated
Poss
ible
so
lutio
ns w
ere
iden
tified
for
two
of t
he t
hree
in
vest
igat
ed
chal
leng
es.
Ap
pro
pria
te
solu
tions
co
uld
no
t b
e fo
und
for
the
chal
leng
e o
f th
e D
epar
tmen
t o
f Ho
me
Affa
irs
Rep
ort
ing
To
ol
for
fro
nt li
ne
serv
ice
del
iver
y
The
3rd
ch
alle
nge
with
no
av
aila
ble
so
lutio
n w
as p
ost
ed o
n th
e In
nova
tion
Hub
’s O
pen
IX
Exc
hang
e to
se
ek s
olu
tions
fr
om
loca
l en
trep
rene
urs
STR
ATE
GIC
OB
JEC
TIV
ES,
PE
RFO
RM
AN
CE
IND
ICA
TOR
S, P
LAN
NE
D T
AR
GE
TS A
ND
AC
TUA
L A
CH
IEV
EM
EN
TS
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 3 9
PR
OG
RA
MM
E 2
: PU
BLI
C S
EC
TOR
INN
OV
ATI
ON
No
Stra
teg
ic
Ob
ject
ive
Per
form
ance
In
dic
ato
rA
ctua
l A
chie
vem
ent
2013
/201
4
Act
ual
Ach
ieve
men
t20
14/2
015
Act
ual
Ach
ieve
men
t20
15/2
016
Pla
nned
tar
get
2016
/17
Act
ual
Ach
ieve
men
t20
16/2
017
Dev
iati
on
fro
m p
lann
ed
targ
et t
o A
ctua
l A
chie
vem
ent
for
2016
/201
7
Co
mm
ent
on
dev
iati
ons
Num
ber
of
iden
tified
se
rvic
e d
eliv
ery
chal
leng
es
sub
mitt
ed t
o
stak
eho
lder
s to
d
evel
op
so
lutio
ns
--
One
cha
lleng
e se
ekin
g s
olu
tions
fo
r im
pro
ving
the
refe
rral
sys
tem
b
etw
een
clin
ics
and
ho
spita
ls
po
sted
on
the
Op
en IX
E
xcha
nge
to in
itiat
e a
dev
elo
pm
ent
pro
cess
At
leas
t o
ne
chal
leng
e w
ith
no a
vaila
ble
so
lutio
n p
ost
ed
on
the
Op
enIX
E
xcha
nge
to in
itiat
e a
dev
elo
pm
ent
pro
cess
Ach
ieve
d
One
(1) s
ervi
ce
del
iver
y ch
alle
nge
seek
ing
a
Serv
ice
Del
iver
y R
epo
rtin
g
Too
l fo
r th
e D
epar
tmen
t o
f H
om
e A
ffairs
w
as p
ost
ed
on
the
Op
en
IX E
xcha
nge
to in
itiat
e a
dev
elo
pm
ent
pro
cess
No
ne
No
ne
2.2
To d
evel
op
ca
se s
tud
ies
of s
elec
ted
se
rvic
e d
eliv
ery
inno
vatio
ns, f
or
dis
sem
inat
ion
thro
ugh
the
CPS
I's k
now
led
ge
pla
tfo
rms
and
p
rod
ucts
Num
ber
of
case
stu
die
s d
evel
op
ed fo
r d
isse
min
atio
n th
roug
h th
e C
PSI's
kno
wle
dg
e p
latf
orm
s an
d
pro
duc
ts
--
Six
Cas
e st
udie
s w
ere
dev
elo
ped
an
d d
isse
min
ated
th
roug
h th
e In
nova
tion
Jour
nal,
“Id
eas
that
Wor
k”•
Rat
infe
stat
ion
in t
ow
nshi
ps
and
the
effic
acy
of d
iffer
ent
inno
vativ
e so
lutio
ns•
Tshe
po
10
000;
• Th
e G
reen
D
oo
r;•
Can
non
Ro
cks
Rev
erse
O
smo
sis
Plan
t•
Out
reac
h Pr
og
ram
me
at
Bav
iaan
s•
Incl
usiv
e E
duc
atio
n at
B
ukho
sib
ethu
At
leas
t fiv
e ca
se
stud
ies
rela
ted
to
se
rvic
e d
eliv
ery
inno
vatio
ns
dev
elo
ped
for
dis
sem
inat
ion
Ach
ieve
d
Five
(5) C
ase
stud
ies
wer
e d
evel
op
ed a
nd
dis
sem
inat
ed
thro
ugh
CPS
I’s
kno
wle
dg
e p
latf
orm
s an
d
pro
duc
ts•
Wo
rkp
lace
Se
rvic
e D
eliv
ery
of
Med
icat
ion
(201
5 In
nova
tor
of t
he Y
ear)
•
Rev
enue
In
form
atio
n M
anag
emen
t Sy
stem
• D
iep
slo
ot
Ho
useh
old
and
C
om
mun
ity
Ala
rm P
ilot
pro
ject
• Fo
resi
ght
for
Dev
elo
pm
ent
in S
out
hern
A
fric
a•
Op
erat
ion
Suku
ma
Sakh
e
No
ne
No
ne
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 4 0
PR
OG
RA
MM
E 2
: PU
BLI
C S
EC
TOR
INN
OV
ATI
ON
No
Stra
teg
ic
Ob
ject
ive
Per
form
ance
In
dic
ato
rA
ctua
l A
chie
vem
ent
2013
/201
4
Act
ual
Ach
ieve
men
t20
14/2
015
Act
ual
Ach
ieve
men
t20
15/2
016
Pla
nned
tar
get
2016
/17
Act
ual
Ach
ieve
men
t20
16/2
017
Dev
iati
on
fro
m p
lann
ed
targ
et t
o A
ctua
l A
chie
vem
ent
for
2016
/201
7
Co
mm
ent
on
dev
iati
ons
2.3
To p
ilot
with
se
r-vi
ce o
wne
rs,
dem
ons
trat
e to
p
ublic
ser
vant
s,
and
faci
litat
e th
e re
plic
atio
n, in
id
entifi
ed s
ecto
rs,
of i
nno
vativ
e m
od
els
and
so
lu-t
ions
tha
t im
pro
ve s
ervi
ce
del
iver
y
Num
ber
of
inno
vativ
e se
rvic
e d
eliv
ery
solu
tion
initi
ated
fo
r p
ilotin
g w
ith
serv
ice
ow
ners
o
ver
a sh
ort
-te
rm p
erio
d
--
The
Mem
eza
Co
mm
unity
A
larm
so
lutio
n th
at w
as d
evel
-o
ped
in 2
014/
15
thro
ugh
The
Inno
vatio
n H
ub
was
iden
tified
for
pilo
ting
in t
he
2015
/16
finan
cial
ye
ar. A
furt
her
560
units
wer
e in
stal
led
with
Pr
ivat
e Se
cto
r fu
ndin
g s
upp
ort
Co
mp
lete
o
ne (1
) pilo
t p
roje
ct in
itiat
ed
in 2
015/
16
to a
dd
ress
se
rvic
e d
eliv
ery
chal
leng
es
Ach
ieve
d
One
(1) p
ilot
pro
ject
initi
ated
in
201
5/16
to
ad
dre
ss
serv
ice
del
iver
y ch
alle
nges
was
co
mp
lete
d
The
final
rep
ort
o
n th
e M
emez
a C
om
mun
ity
Ala
rm s
olu
tion
pro
ject
was
su
bm
itted
, the
o
utco
me
has
info
rmed
the
p
lann
ing
for
furt
her
rep
licat
ion
of t
he p
roje
ct
No
ne
No
ne
--
-A
t le
ast
one
(1
) new
pilo
t p
roje
ct in
itiat
ed
to a
dd
ress
se
rvic
e d
eliv
ery
chal
leng
es
Ach
ieve
d
One
(1) n
ew
pilo
t p
roje
ct, t
he
Hea
lth S
ecto
r In
nova
tion
Hub
p
roje
ct fo
r B
erth
a G
xow
a H
osp
ital,
was
initi
ated
to
ad
dre
ss
serv
ice
del
iver
y ch
alle
nges
.
No
ne
No
ne
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 4 1
PR
OG
RA
MM
E 2
: PU
BLI
C S
EC
TOR
INN
OV
ATI
ON
No
Stra
teg
ic
Ob
ject
ive
Per
form
ance
In
dic
ato
rA
ctua
l A
chie
vem
ent
2013
/201
4
Act
ual
Ach
ieve
men
t20
14/2
015
Act
ual
Ach
ieve
men
t20
15/2
016
Pla
nned
tar
get
2016
/17
Act
ual
Ach
ieve
men
t20
16/2
017
Dev
iati
on
fro
m p
lann
ed
targ
et t
o A
ctua
l A
chie
vem
ent
for
2016
/201
7
Co
mm
ent
on
dev
iati
ons
Num
ber
of
inno
vativ
e se
rvic
e d
eliv
ery
solu
tion
initi
ated
fo
r p
ilotin
g w
ith
serv
ice
ow
ners
o
ver
a m
ulti
-yea
r p
erio
d
--
Ene
rgy
Effi
cien
cy
Pilo
t Pr
oje
ct
initi
ated
at
Hel
en
Jose
ph
Ho
spita
l to
ad
dre
ss h
igh
cost
of e
nerg
y in
st
ate
hosp
itals
Co
ntin
uatio
n o
f one
(1) p
ilot
pro
ject
initi
ated
in
201
5/16
to
ad
dre
ss
serv
ice
del
iver
y ch
alle
nges
Ach
ieve
d
The
CPS
I co
ntin
ued
the
m
oni
torin
g o
f en
erg
y p
atte
rns
of t
he h
osp
ital
in p
artn
ersh
ip
with
the
ho
spita
l m
anag
emen
t an
d t
he G
aute
ng
Dep
artm
ent
of
Infr
astr
uctu
re
Dev
elo
pm
ent.
Th
is lo
ng-t
erm
p
roje
ct s
elec
tivel
y in
tro
duc
e te
chni
cal a
nd
beh
avio
ural
in
terv
entio
ns
to re
duc
e th
e en
erg
y co
nsum
ptio
n o
f th
e ho
spita
l
No
ne
No
ne
Num
ber
of v
isits
to
the
Mul
ti-m
edia
Inno
vatio
n C
entr
e b
y p
ublic
se
cto
r o
ffici
als
and
oth
er
par
tner
s
--
A t
ota
l of 3
33
pub
lic s
ecto
r o
ffici
als
and
o
ther
par
tner
s vi
site
d a
nd u
sed
th
e M
MIC
. The
vi
sito
rs in
clud
ed
amo
ngst
oth
ers,
City
of T
shw
ane,
N
SG, C
ity o
f Jo
hann
esb
urg
, Te
chno
log
y In
nova
tion
Ag
ency
, Nat
iona
l Tr
easu
ry, C
ivili
an
Secr
etar
iat
of
Polic
e, T
he
UN
DP,
SA
HR
C,
SALG
A
At
leas
t 50
p
ublic
sec
tor
offi
cial
s an
d o
ther
p
artn
ers
sho
uld
vi
sit
the
MM
IC
Ach
ieve
d
A t
ota
l of 1
65
pub
lic s
ecto
r o
ffici
als
and
o
ther
par
tner
s vi
site
d a
nd
used
the
MM
IC.
This
incl
uded
, am
ong
st o
ther
s,
SAD
C/U
NPA
N
del
egat
es,
Mem
ber
s o
f th
e Po
rtfo
lio
Co
mm
ittee
o
n Pu
blic
Se
rvic
e an
d
Ad
min
istr
atio
n an
d t
he O
ffice
of
the
Pub
lic S
ervi
ce
Co
mm
issi
on
115
mo
re p
ublic
se
cto
r o
ffici
als
and
oth
er
par
tner
s vi
site
d
and
use
d t
he
MM
IC
A lo
wer
tar
get
o
f 50
was
set
to
allo
w fo
r th
e p
lann
ed
upg
rad
e o
f the
M
MIC
dur
ing
th
e 20
16/1
7 fin
anci
al y
ear.
The
add
itio
nal
num
ber
s ar
e m
ainl
y d
ue t
o
use
of t
he m
ob
ile
MM
IC
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 4 2
PR
OG
RA
MM
E 2
: PU
BLI
C S
EC
TOR
INN
OV
ATI
ON
No
Stra
teg
ic
Ob
ject
ive
Per
form
ance
In
dic
ato
rA
ctua
l A
chie
vem
ent
2013
/201
4
Act
ual
Ach
ieve
men
t20
14/2
015
Act
ual
Ach
ieve
men
t20
15/2
016
Pla
nned
tar
get
2016
/17
Act
ual
Ach
ieve
men
t20
16/2
017
Dev
iati
on
fro
m p
lann
ed
targ
et t
o A
ctua
l A
chie
vem
ent
for
2016
/201
7
Co
mm
ent
on
dev
iati
ons
Up
gra
din
g o
f eq
uip
men
t an
d
upd
atin
g c
ont
ent
the
Mul
ti-m
edia
In
nova
tion
Cen
tre
--
Ass
essm
ent
of t
he M
MIC
eq
uip
men
t an
d c
ont
ent
req
uire
men
ts
for
po
ssib
le
upg
rad
ing
and
up
dat
ing
in
2016
/17
was
co
nduc
ted
and
an
ass
essm
ent
rep
ort
dev
elo
ped
Up
gra
din
g o
f eq
uip
men
t o
f MM
IC a
nd
upd
atin
g c
ont
ent
as d
eter
min
ed
by
asse
ssm
ent
of
2015
/16
Ach
ieve
d
The
equi
pm
ent
of t
he M
MIC
w
as u
pg
rad
ed
and
the
co
nten
t up
dat
ed a
s d
eter
min
ed b
y th
e as
sess
men
t o
f 201
5/16
No
ne
No
ne
Num
ber
of
inno
vativ
e p
roje
cts
faci
litat
ed fo
r re
plic
atio
n
--
Two
(2) C
PSI
awar
d w
inni
ng
pro
ject
s w
ere
iden
tified
, fa
cilit
ated
and
su
pp
ort
ed fo
r R
eplic
atio
n:•
Rep
licat
ion
of t
he S
avin
g
Blo
od
, Sav
ing
liv
es P
roje
ct
was
faci
litat
ed
and
initi
ated
at
Ber
tha
Gxo
wa
Ho
spita
l•
Die
tetic
s p
roje
ct w
as
faci
litat
ed fo
r re
plic
atio
n at
M
oko
pan
e H
osp
ital i
n th
e W
ater
ber
g
Dis
tric
t
Two
CPS
I aw
ard
w
inni
ng a
nd/o
r o
ther
inno
vatio
n p
roje
cts
faci
litat
ed fo
r re
plic
atio
n
Ach
ieve
d
Two
(2) C
PSI
awar
d w
inni
ng
pro
ject
s w
ere
faci
litat
ed fo
r re
plic
atio
n:•
Savi
ng B
loo
d,
Savi
ng L
ives
w
as re
plic
ated
at
Far
Eas
t,
Tem
bis
a an
d
Lera
tong
H
osp
itals
•
Hig
h Vo
lum
e C
atar
act
Pro
ject
was
re
plic
ated
at
Bhe
ki M
lang
eni
Ho
spita
l
No
ne
No
ne
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 4 3
PR
OG
RA
MM
E 2
: PU
BLI
C S
EC
TOR
INN
OV
ATI
ON
No
Stra
teg
ic
Ob
ject
ive
Per
form
ance
In
dic
ato
rA
ctua
l A
chie
vem
ent
2013
/201
4
Act
ual
Ach
ieve
men
t20
14/2
015
Act
ual
Ach
ieve
men
t20
15/2
016
Pla
nned
tar
get
2016
/17
Act
ual
Ach
ieve
men
t20
16/2
017
Dev
iati
on
fro
m p
lann
ed
targ
et t
o A
ctua
l A
chie
vem
ent
for
2016
/201
7
Co
mm
ent
on
dev
iati
ons
2.4
To p
rom
ote
a
cultu
re o
f in
nova
tion
in t
he
pub
lic s
ecto
r to
en
hanc
e se
rvic
e d
eliv
ery
thro
ugh
sust
aini
ng a
nd
man
agin
g
kno
wle
dg
e p
rog
ram
mes
, p
rod
ucts
and
p
latf
orm
s
Num
ber
of
final
ist
inno
vatio
n p
roje
cts
or
pro
gra
mm
es
reco
gni
sed
in
the
Ann
ual
CPS
I Pub
lic
Sect
or
Aw
ard
s C
erem
ony
to
en
cour
age
and
pro
mo
te
inno
vatio
n in
the
p
ublic
sec
tor
--
Ent
ries
wer
e re
ceiv
ed t
o t
he
13th
CPS
I Pub
lic
Sect
or
Inno
vatio
n A
war
ds.
Fo
ur
inno
vativ
e p
roje
cts
per
ca
teg
ory
wer
e id
entifi
ed a
nd
reco
gni
sed
at
the
Aw
ard
s C
erem
ony
hel
d
in O
cto
ber
. A
tota
l 20
Pub
lic
Sect
or
Inno
vativ
e So
lutio
ns
(incl
udin
g a
M
inis
teria
l aw
ard
) w
ere
awar
ded
At
leas
t fo
ur
pro
ject
s p
er
cate
go
ry
iden
tified
and
re
cog
nise
d in
a
form
al a
war
ds
cere
mo
ny
Ach
ieve
d
Ent
ries
wer
e re
ceiv
ed t
o t
he
14th
CPS
I Pub
lic
Sect
or
Inno
vatio
n A
war
ds.
Six
teen
p
roje
cts
(four
p
er c
ateg
ory
) w
ere
reco
gni
sed
an
d a
war
ded
for
thei
r in
nova
tive
solu
tions
to
im
pro
ve s
ervi
ce
del
iver
y at
th
e A
war
ds
Cer
emo
ny h
eld
in
Oct
ob
er 2
016
No
ne
No
ne
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 4 4
PR
OG
RA
MM
E 2
: PU
BLI
C S
EC
TOR
INN
OV
ATI
ON
No
Stra
teg
ic
Ob
ject
ive
Per
form
ance
In
dic
ato
rA
ctua
l A
chie
vem
ent
2013
/201
4
Act
ual
Ach
ieve
men
t20
14/2
015
Act
ual
Ach
ieve
men
t20
15/2
016
Pla
nned
tar
get
2016
/17
Act
ual
Ach
ieve
men
t20
16/2
017
Dev
iati
on
fro
m p
lann
ed
targ
et t
o A
ctua
l A
chie
vem
ent
for
2016
/201
7
Co
mm
ent
on
dev
iati
ons
Kno
wle
dg
e o
n p
ublic
ser
vice
in
nova
tions
sh
ared
and
ex
chan
ged
th
roug
h th
e A
nnua
l Pub
lic
Sect
or
Inno
vatio
n C
onf
eren
ce
to e
nco
urag
e le
arni
ng a
nd
rep
licat
ion
--
The
Ann
ual
Pub
lic S
ecto
r In
nova
tion
Co
nfer
ence
was
ho
sted
in A
ugus
t 20
15 a
tten
ded
b
y m
ore
tha
n 35
0 d
eleg
ates
.
Five
Inno
vativ
e ca
se s
tud
ies
wer
e p
rese
nted
A
Min
iste
rial
Ro
und
tab
le
follo
wed
by
a p
anel
of e
xper
ts’
dis
cuss
ion
was
he
ld
Ho
st t
he A
nnua
l Pu
blic
Sec
tor
Inno
vatio
n C
onf
eren
ce t
o
shar
e at
leas
t fiv
e in
nova
tive
case
st
udie
s an
d a
p
anel
of e
xper
ts’
dis
cuss
ion
held
Ach
ieve
d
The
Ann
ual P
ublic
Se
ctor
Inno
vatio
n C
onfe
renc
e w
as
host
ed in
Aug
ust
2016
whe
re fi
ve
Inno
vativ
e ca
se
stud
ies
wer
e pr
esen
ted
The
Con
fere
nce
was
att
ende
d by
th
e M
inis
ter f
or th
e Pu
blic
Ser
vice
and
A
dmin
istr
atio
n an
d th
e M
inis
ter f
or
Tele
com
mun
icat
ions
an
d Po
stal
Ser
vice
s
Repr
esen
tativ
es fr
om
the
Peop
le’s
Repu
blic
of
Chi
na a
nd N
amib
ia
wer
e am
ongs
t the
de
lega
tes.
A M
inis
teria
l Ro
undt
able
follo
wed
by
a p
anel
of e
xper
ts’
disc
ussi
on w
as h
eld
No
ne
No
ne
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 4 5
PR
OG
RA
MM
E 2
: PU
BLI
C S
EC
TOR
INN
OV
ATI
ON
No
Stra
teg
ic
Ob
ject
ive
Per
form
ance
In
dic
ato
rA
ctua
l A
chie
vem
ent
2013
/201
4
Act
ual
Ach
ieve
men
t20
14/2
015
Act
ual
Ach
ieve
men
t20
15/2
016
Pla
nned
tar
get
2016
/17
Act
ual
Ach
ieve
men
t20
16/2
017
Dev
iati
on
fro
m p
lann
ed
targ
et t
o A
ctua
l A
chie
vem
ent
for
2016
/201
7
Co
mm
ent
on
dev
iati
ons
Num
ber
of
editi
ons
of t
he
“Id
eas
that
W
ork”
: Th
e So
uth
Afr
ican
Pu
blic
Sec
tor
Inno
vatio
n Jo
urna
l pub
lishe
d
to e
nco
urag
e le
arni
ng
--
Two
ed
itio
ns
(Vo
lum
e 6
Issu
e 1
and
2) o
f “Id
eas
that
Wor
k”: T
he
Sout
h A
fric
an
Pub
lic S
ecto
r In
nova
tion
Jour
nal w
ere
pub
lishe
d w
ith a
to
tal o
f 11
loca
l ca
se s
tud
ies,
12
insi
ght
ar
ticle
s an
d 1
3 in
tern
atio
nal
inno
vatio
ns. T
he
Jour
nals
wer
e d
isse
min
ated
to
var
ious
st
akeh
old
ers
Pub
lish
Vol 7
Is
sue
1 an
d 2
of
the
“Id
eas
that
W
ork”
: Th
e So
uth
Afr
ican
Pu
blic
Sec
tor
Inno
vatio
n Jo
urna
l with
at
leas
t 5
case
st
udie
s an
d
dis
sem
inat
e co
pie
s to
the
p
ublic
sec
tor,
acad
emia
and
st
akeh
old
ers
Ach
ieve
d
Two
(2) e
diti
ons
(V
olu
me
7 Is
sue
1 an
d 2
) of “
Idea
s th
at W
ork”
: The
So
uth
Afr
ican
Pu
blic
Sec
tor
Inno
vatio
n Jo
urna
l w
ere
pub
lishe
d
with
5 c
ase
stud
ies
in e
ach
Jour
nal
The
Jour
nals
wer
e d
isse
min
ated
to
var
ious
st
akeh
old
ers
No
ne
No
ne
Num
ber
of
wo
rksh
op
s o
n Le
adin
g
Inno
vatio
n in
the
Pu
blic
Ser
vice
to
b
uild
cap
acity
in
the
pub
lic s
ervi
ce
held
--
Two
(2)
wo
rksh
op
s w
ere
held
, one
in
Aug
ust
atte
nded
b
y 31
del
egat
es
and
the
sec
ond
o
ne in
Oct
ob
er
atte
nded
by
27
del
egat
es
Two
wo
rksh
op
s he
ld a
nd
atte
nded
by
pub
lic o
ffici
als
Ach
ieve
d
Four
(4) s
ecto
r-sp
ecifi
c w
ork
sho
ps
on
Lead
ing
In
nova
tion
in t
he
Pub
lic S
ervi
ce
wer
e co
nduc
ted
in
3 p
rovi
nces
(K
ZN, L
imp
op
o
and
Mp
umal
ang
a)
for
hosp
ital C
EO
s,
Clin
ical
Man
ager
s an
d o
ther
Hea
lth
Offi
cial
s
The
wo
rksh
op
s w
ere
atte
nded
by
130
hosp
ital C
EO
s an
d o
ther
offi
cial
s
Four
Inno
vatio
n W
ork
sho
ps
wer
e he
ld in
stea
d o
f th
e tw
o a
s in
itial
ly
pla
nned
The
add
itio
nal
two
wo
rksh
op
s w
ere
fund
ed b
y th
e U
ND
P
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 4 6
PR
OG
RA
MM
E 2
: PU
BLI
C S
EC
TOR
INN
OV
ATI
ON
No
Stra
teg
ic
Ob
ject
ive
Per
form
ance
In
dic
ato
rA
ctua
l A
chie
vem
ent
2013
/201
4
Act
ual
Ach
ieve
men
t20
14/2
015
Act
ual
Ach
ieve
men
t20
15/2
016
Pla
nned
tar
get
2016
/17
Act
ual
Ach
ieve
men
t20
16/2
017
Dev
iati
on
fro
m p
lann
ed
targ
et t
o A
ctua
l A
chie
vem
ent
for
2016
/201
7
Co
mm
ent
on
dev
iati
ons
2.5
Part
icip
ate
in
reg
iona
l and
in
tern
atio
nal
inno
vatio
n p
rog
ram
mes
for
lear
ning
, sha
ring
an
d p
rofil
ing
of
Sout
h A
fric
an
inno
vatio
ns t
o
stre
ngth
en g
oo
d
go
vern
ance
in
itiat
ives
Num
ber
of
cont
ent
item
s o
n In
nova
tion,
Pub
lic
Ad
min
istr
atio
n an
d F
inan
ce,
uplo
aded
ont
o
the
UN
PAN
Po
rtal
as
the
SAD
C O
nlin
e R
egio
nal C
entr
e to
co
ntrib
ute
to
the
stre
ngth
enin
g
of p
ublic
ad
min
istr
atio
n an
d g
oo
d
go
vern
ance
in
itiat
ives
--
The
CPS
I up
load
ed 1
497
do
cum
ents
to
the
U
NPA
N P
ort
al.
Thes
e in
clud
e 10
46 p
ublic
ad
min
istr
atio
n an
d in
nova
tive
new
s ite
ms,
156
ev
ents
; 285
pub
lic
adm
inis
trat
ion
and
inno
vativ
e d
ocu
men
ts (i
.e.
pre
sent
atio
ns,
jour
nals
and
re
po
rts)
and
10
No
tices
. Co
nten
t w
as s
olic
ited
fr
om
SA
DC
p
artic
ipan
ts
Up
load
120
0 co
nten
t ite
ms
on
inno
vatio
n, p
ublic
ad
min
istr
atio
n an
d fi
nanc
e o
nto
the
UN
PAN
Po
rtal
Ach
ieve
d
The
CPS
I up
load
ed 1
331
cont
ent
item
s to
th
e U
NPA
N P
ort
al.
Thes
e in
clud
e 10
65 p
ublic
ad
min
istr
atio
n an
d in
nova
tive
new
s ite
ms,
106
ev
ents
; 152
pub
lic
adm
inis
trat
ion
and
inno
vativ
e d
ocu
men
ts (i
.e.
pre
sent
atio
ns,
jour
nals
and
re
po
rts)
and
8
No
tices
131
mo
re c
ont
ent
item
s w
ere
uplo
aded
to
the
U
NPA
N P
ort
al
Due
to
the
C
PSI’s
cap
acity
b
uild
ing
in
itiat
ives
, mo
re
SAD
C c
oun
trie
s ha
ve d
evel
op
ed
web
site
s w
hich
m
ake
the
acce
ssib
ility
o
f co
untr
y in
form
atio
n ea
sier
.
UN
PAN
SA
DC
re
gio
nal
wo
rksh
op
ho
sted
to
max
imiz
e SA
DC
's c
ont
ent
cont
ribut
ion
to t
he U
NPA
N
Port
al
--
The
UN
PAN
SA
DC
Reg
iona
l W
ork
sho
p
was
ho
sted
in
June
201
5 in
Jo
hann
esb
urg
an
d a
tten
ded
by
rep
rese
ntat
ives
fr
om
10
SAD
C
coun
trie
s:
Mal
awi,
The
D
RC
, Sey
chel
les,
Le
soth
o,
Tanz
ania
, N
amib
ia,
Mo
zam
biq
ue,
Mau
ritiu
s,
Bo
tsw
ana
and
Sw
azila
nd
Ho
st a
UN
PAN
SA
DC
reg
iona
l w
ork
sho
p
atte
nded
by
rep
rese
ntat
ives
fr
om
SA
DC
co
untr
ies
Ach
ieve
d
The
UN
PAN
SA
DC
re
gio
nal w
ork
sho
p
was
hel
d o
n 8
and
9 J
une
2016
an
d a
tten
ded
by
rep
rese
ntat
ives
fr
om
10
SAD
C
coun
trie
s:
Tanz
ania
, Se
yche
lles,
N
amib
ia,
Mo
zam
biq
ue,
Mau
ritiu
s, M
alaw
i, Le
soth
o, Z
amb
ia
Bo
tsw
ana
and
Zi
mb
abw
e
The
wo
rksh
op
w
as a
lso
att
end
ed
by
the
SA-U
ND
P co
untr
y o
ffice
and
th
e St
atis
ticia
n-G
ener
al
No
ne
No
ne
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 4 7
PR
OG
RA
MM
E 2
: PU
BLI
C S
EC
TOR
INN
OV
ATI
ON
No
Stra
teg
ic
Ob
ject
ive
Per
form
ance
In
dic
ato
rA
ctua
l A
chie
vem
ent
2013
/201
4
Act
ual
Ach
ieve
men
t20
14/2
015
Act
ual
Ach
ieve
men
t20
15/2
016
Pla
nned
tar
get
2016
/17
Act
ual
Ach
ieve
men
t20
16/2
017
Dev
iati
on
fro
m p
lann
ed
targ
et t
o A
ctua
l A
chie
vem
ent
for
2016
/201
7
Co
mm
ent
on
dev
iati
ons
Num
ber
of
coun
try
visi
ts
cond
ucte
d t
o
crea
te a
war
enes
s o
n U
NPA
N
--
Two
SA
DC
co
untr
ies
wer
e vi
site
d t
o c
reat
e aw
aren
ess
on
UN
PAN
Bo
tsw
ana
was
vi
site
d in
Jul
y an
d
Mo
zam
biq
ue in
N
ove
mb
er 2
015
resp
ectiv
ely
Co
nduc
t tw
o
SAD
C c
oun
try
visi
ts
Ach
ieve
d
Part
icip
ated
in
the
Stra
teg
ic
Fore
sig
ht
Wo
rksh
op
s in
Le
soth
o o
n 19
- 2
1 Se
pte
mb
er 2
016
and
Mal
awi o
n 16
-18
No
vem
ber
20
16 t
o c
reat
e aw
aren
ess
on
UN
PAN
No
ne
No
ne
Num
ber
of
Sout
h A
fric
an
inno
vatio
n p
roje
cts
sup
po
rted
to
ent
er in
to
Inte
rnat
iona
l A
war
ds
Pro
gra
mm
es
--
Eig
ht (8
) CPS
I Pu
blic
Sec
tor
Inno
vatio
n A
war
ds
final
ists
in
nova
tion
pro
ject
s w
ere
ente
red
into
th
e A
APA
M
Inno
vativ
e M
anag
emen
t A
war
ds
One
of t
he
ente
red
pro
ject
s,
Mo
mC
onn
ect,
w
as a
war
ded
Si
lver
Ent
er a
t le
ast
eig
ht S
out
h A
fric
an p
ublic
se
rvic
e in
nova
tion
pro
ject
s in
to
Inte
rnat
iona
l A
war
ds
Pro
gra
mm
es
Ach
ieve
d
Eig
ht (8
) CPS
I Pu
blic
Sec
tor
Inno
vatio
n A
war
ds
final
ist
inno
vatio
n p
roje
cts
wer
e en
tere
d in
to
the
All
Afr
ica
Pub
lic S
ecto
r In
nova
tion
Aw
ard
s Pr
og
ram
me
No
ne
No
ne
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 4 8
PR
OG
RA
MM
E 2
: PU
BLI
C S
EC
TOR
INN
OV
ATI
ON
No
Stra
teg
ic
Ob
ject
ive
Per
form
ance
In
dic
ato
rA
ctua
l A
chie
vem
ent
2013
/201
4
Act
ual
Ach
ieve
men
t20
14/2
015
Act
ual
Ach
ieve
men
t20
15/2
016
Pla
nned
tar
get
2016
/17
Act
ual
Ach
ieve
men
t20
16/2
017
Dev
iati
on
fro
m p
lann
ed
targ
et t
o A
ctua
l A
chie
vem
ent
for
2016
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STRATEGY TO OVERCOME AREAS OF UNDER PERFORMANCE
During the period under review one target was not fully achieved. One service delivery challenge was investigated but no existing solutions were found, and therefore the challenge was posted on the Open IX Exchange for the development of a new solution.
Changes to planned targets
Performance target - 2016/17 APP
Changes to the 2016/17 APP
Motivation for change Approval details
Complete the pilot initiated in 2015/16 to address service delivery challenges
• Complete one (1) pilot initiated in 2015/16 to address service delivery challenges
Target was not aligned to the indicator The target must be a number
Approved by MPSA on 02/03/2017 Submission No. CPSI 2016/17 132
At least one (1) new pilot initiated to address service delivery challenges
• At least one (1) new pilot project initiated to address service delivery challenges
Target was not aligned to the indicator The target must be a number. The word project was omitted from the target
Continuation the pilot initiated in 2015/16 to address service delivery challenges
• Continuation one (1) pilot project initiated in 2015/16 to address service delivery challenges
Target was not aligned to the indicatorThe target must be a number. The word project was omitted from the target
Publish Vol 7 Issue 1 and 2 of the “Ideas that work: The South African Public Sector Innovation Journal published with at least 5 case studies and copies disseminated copies to the public sector, academia and stakeholders
• Publish Vol 7 Issue 1 and 2 of the “Ideas that work: The South African Public Sector Innovation Journal with at least 5 case studies and disseminate copies to the public sector, academia and stakeholders
Duplication of words in the target
Linking performance with budgets
Programme 2: Public Sector Innovation
2015/2016 2016/2017
Final Appropriation
R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’000
Final Appropriation
R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’000
1. Research and Development
2 861 2 644 217 2 713 2 493 220
2. Solution Support and Incubation
3 842 3 809 33 3 441 3 420 21
3. Enabling Environment
8 288 8 258 30 7 661 7 585 76
Total 19 991 14 711 280 13 815 13 498 317
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5 TRANSFER PAYMENTS
No transfer payments to public entities or any other organisation were made by the CPSI during the period under review.
6 CONDITIONAL GRANTS
The CPSI did not pay or receive any conditional grants or earmarked funds during the period under review.
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7 DONOR FUNDS
7.1. Donor Funds Received
Name of donor European Union - General Budget Support
Full amount of the funding R10 700 000.00
Period of the commitment 2015-2019
Purpose of the funding The purpose of the program is to unlock innovation in the Public Sector.
Expected outputs 1) To investigate and recommend sustainable models and solutions for innovative service delivery.
2) To facilitate the creation, adaption, piloting and mainstreaming of innovative solutions within the public sector.
3) To create and sustain an enabling environment which entrenches a culture of innovation in the public sector through innovation platforms and products.
Actual outputs achieved 1) Contributed to the successful identification and analysing of 16 innovative projects for replication.
2) Conducted a feasibility study before final selection for projects to be replicated.
3) Developed “A guide to successful replication of service innovations in public sector” The guide emphasizes four factors needed in a service delivery innovation in order to promote the replication/scaling up process.
4) Assisted in facilitating the replication of ‘Saving Blood, Saving Lives’ project in a number of hospitals.
5) Contributed to the upgrading of all content in the Multi-Media Innovation Centre• Designed and developed content for MMIC• Uploaded content to all equipment in the MMIC• Identified new modern equipment and software required to upgrade the MMIC
6) Conducted tours for visitors in the MMIC
7) Showcasing the Mobile Multi-Media Innovation Centre at CPSI events (e.g. CPSI Conference, Call for entries) and various external conferences, exhibitions, and events (e.g. Budget Vote, Gems Symposium, Hack 4 Water, Public Service Month Launch).
8) Product and platforms were supported by:• Providing in-house design and layout skills for all CPSI publications (e.g. 2 Editions of
the CPSI journal during 2016/2017 and Annual Reports)• Managing and maintaining the CPSI website and social media accounts.
9) Contributed to the growing uploading of content on the UNPAN Portal
10) Stakeholder management related to the UNPAN/ SADC workshop
Amount received in current period (R’000)
2 391
Amount spent by the department (R’000)
2 384
Reasons for the funds unspent
The remaining funds will be surrendered to the RDP fund during the 2017/18 financial year
Monitoring mechanism by the donor
Quarterly reports were submitted to the RDP to monitor the progress of the project.
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Name of donor Canadian International Agency
Full amount of the funding CAD 6 500 000.00
Period of the commitment 2017-2021
Purpose of the funding Facilitate the implementation of the Tirelo Bosha-Government Service Delivery Project
Expected outputs Improved efficiency, effectiveness, transparency and accountability in the provision of quality public services
Actual outputs achieved 1) A costed implementation plan was developed.2) A draft replication methodology was developed and submitted for approval3) A project steering committee meeting was held
Amount received in current period (R’000)
R4 698
Amount spent by the department (R’000)
R0
Reasons for the funds unspent
The Tirelo Bosha- Government Service Delivery Project Steering committee could not agree on the conceptualisation documents and approach to project implementation. The Steering committee postponed all activities and expenditure to the 2017/18 financial year.
Monitoring mechanism by the donor
Steering committee meetings are held between the donor and the department to monitor the progress of the project.
Name of donor The Kingdom Of The Belgium Government – Tirelo Bosha Public Service Improvement Programme
Full amount of the funding R 1 974 400.00
Period of the commitment 18 Months
Purpose of the funding To protect ICT equipment in 23 Gauteng No Fee paying schools by pro-activation of South African Police Services (SAPS), Community Policing Forums (CPF) and mobilization of communities through Police Sector Alarm Systems.
Expected outputs 1) Reduce the risk of theft of ICT equipment in the 23 No Fee paying schools.2) Provide tangible safety measures to 3510 learners3) Improve Front Line Service Delivery due to the fact that the Police Sector Alarms links
directly to SAPS and proactively informs them on crime in the targeted schools.4) Community and Community Policing Forums’ involvement to ensure a 360 degree
approach to fighting crime in these schools.5) Job creation and knowledge sharing/training provided in the communities where the pilot
will be deployed. Cohesion between SAPS/CPF and communities.
Actual outputs achieved 4) A costed implementation plan was developed.5) A draft replication methodology was developed and submitted for approval6) A project steering committee meeting was held
Amount received in current period (R’000)
750
Amount spent by the department (R’000)
750
Reasons for the funds unspent
There are no unspent funds.
Monitoring mechanism by the donor
Steering committee meetings are held between the donor and the department to monitor the progress of the project.
8 CAPITAL INVESTMENT
Not applicable.
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PA R T C : G O V E R N A N C E
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
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1 INTRODUCTION
The Centre for Public Service Innovation is committed to maintain a high standard of governance which is fundamental in the management of public finances and resources. The organisation has in place, governance structures to ensure effective, efficient and economic utilization of state resources. The structures include amongst others, the Executive Committee, Audit and Risk Committee. The Internal Audit function provides assurance on the effectiveness of the governance processes within the department.
2 RISK MANAGEMENT
The CPSI is committed to implementing and maintaining an effective, efficient and transparent system of risk management and this is outlined in the organisation’s risk management policy. A strategic risk assessment was conducted and management continues to monitor the implementation of the mitigation strategies on an ongoing basis. Progress is reported to both the Executive and Audit and Risk Committee on a quarterly basis.
All Members of the Executive Committee attend the Audit and Risk Committee meetings and participate in the overall management of the risk management processes in the CPSI. The Audit and Risk Committee reviews risk management reports during its quarterly meetings to determine the effectiveness of the risk management processes within the organisation.
3 FRAUD AND CORRUPTION
The CPSI supports the National Anti–Corruption Hotline. In addition to reporting suspected fraud and corruption through the Hotline, a whistle blowing policy was developed to encourage employees in making confidential disclosure about suspected activities of fraud and corruption.
A fraud risk assessment was conducted during the year under review and the identified fraud risks are continuously monitored through the governance structures.
The CPSI is committed to investigating and reporting on all reported cases of fraud and corruption to the relevant institutions, depending on the outcome of the preliminary investigation.
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4 MINIMISING CONFLICT OF INTEREST
Treasury Regulations paragraph 16A8.3 requires that a Supply Chain Management Official or role player in the SCM environment must recognise and disclose any conflict of interest that may arise when participating or performing functions in the Supply Chain Management processes. To adhere to this the CPSI implemented a Declaration of Interest Form in the procurement processes for officials and members of the Bid Committees to declare any conflict of interest and to recuse themselves from the processes when they have declared an interest.
Panel members involved in any Human Resource processes are required to declare their interests as regards any candidate(s) shortlisted/interviewed for a post and therefore agree that should it be verified that they have misinformed the committee, they would be penalised as per measures contained in the disciplinary code.
5 CODE OF CONDUCT
The CPSI adheres to the Public Service Code of Conduct. The Code is a guideline to employees as to what is expected of them from an ethical point of view, both in their individual conduct and in their relationship with others (internal and external).
Compliance with the Code is expected to enhance professionalism and help to ensure confidence in CPSI employees and in the public service in general. All CPSI employees have signed the code of conduct and there were no reported cases of misconduct. Any alleged breach of the code of conduct, will be taken as a misconduct and will be handled in terms of PSCBC Resolution 1 of 2003, Disciplinary Code and Procedure.
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6 HEALTH SAFETY AND ENVIRONMENTAL ISSUES
The CPSI has two trained Health Safety officers who conducted a risk assessment on the environment and identified immediate areas of concern. These include the procurement of additional fire extinguishers for key areas in the organisation and the establishment of a sick bay. Internal Health, safety and environmental awareness pamphlets were also designed and distributed to all staff.
7 PORTFOLIO COMMITTEES
Dates of the meeting Matters raised by the Portfolio Committee How was the matters addressed
04 May 2016 Briefing by the Department of Public Service and Administration and its entities on the Strategic Plan and Annual Performance Plan 2016/17 financial year.
Presentation made and questions for clarity answered
31 August 2016 Briefing by the Department of Public Service and Administration, National School of Government, Centre for Public Service Innovation and the Public Service Commission on their first quarter performance of the Annual Performance Plan 2016/17
Presentation made and questions for clarity answered
12 October 2016 Department of Public Service and Administration, NSG, CPSI & PSC on their 2015/16 Annual Reports with Auditor General; Progress Report on implementation of recommendations contained in budget report
Presentation made and questions for clarity answered
2 February 2017 Briefing of the Portfolio Committee on the Second and Third Quarters Performance Report
Presentation made and questions for clarity answered
15 March 2017 Briefing by CPSI on new innovation projects aimed to unlock service delivery challenges in the Public Service
Presentation made and questions for clarity answered
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8 SCOPA RESOLUTIONS
During the 2016/17 financial year, the CPSI was not called to appear before SCOPA.
9 PRIOR MODIFICATIONS TO AUDIT REPORTS
The CPSI received a clean audit from the AGSA for the 2015/16 financial year. The matters that were reported in the Management Report to the Accounting Officer for the year ending 31 March 2016 were the following and the steps which CPSI took to resolve the issues are as follows:
Finding Financial year in which it first arose
Progress made in clearing / resolving the matter
Other important matters
Internal audit conducted audits for CPSI but the process was fragmented and no overarching document / process was in place to link the risks to the three-year rolling strategic plan.
2015/16 Resolved
10 INTERNAL CONTROL UNIT
The CPSI relies on the work of the Internal Audit Function for assurance on the adequacy and effectiveness of the system of internal control. Based on the various audit reports produced by Internal Audit Function during the year, CPSI’s internal control environment is overall satisfactory. Management is committed to implementing action plans on control weaknesses identified has proven beneficial in the safeguarding of assets and the effectiveness and efficient management of resources.
11 INTERNAL AUDIT AND AUDIT COMMITTEES
Internal Audit
The Internal Audit Function provides independent and objective assurance and insight to management on the effectiveness of governance, risk management and internal control systems in order to assist the CPSI to achieve its objectives. The Audit Committee approves a risk-based internal audit project plan. Reports on the outcome of audit projects undertaken during the year were reported to the Audit Committee on a quarterly basis.
The following internal audit work was completed during the year under review:
• Audit of Pre-determined Objectives;• Governance review;• Human Resource Management;• Supply Chain Management;• Assets Management;• Information Technology;• Internal Financial Controls; and• Interim and Annual Financial Statements review.
Audit Committee
The Audit and Risk Committee oversees the CPSI’s compliance with applicable laws and regulations, governance processes and continuously assess the performance of Internal Audit Function to determine the
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level of its effectiveness within the CPSI. The Committee operates within an approved Audit and Risk Committee Charter and in accordance with the requirements of the PFMA and Treasury Regulations.
The Audit and Risk Committee held five (5) meetings during 2016/17 and the table below discloses relevant information on the Audit and Risk Committee members:
Name Qualifications Internal or External
Date appointed
Date resigned
No. of meetings attended
Adv. William Elias Huma
B Proc; LLB; LLM; Graduate Diploma in Corporate GovernanceAdvocate of the High Court of South Africa Fellow of the Institute of Directors
External 10 March 2016
-- 5
Mr. Sethopo Michael Mamotheti
B.Com; Post graduate Diploma in Accounting(PDA); MBA; Certified Internal Auditor (CIA)
External 10 March 2016
-- 4
Ms. Precious Mvulane
CA and RA (SA), Specialist Diploma in Auditing, BCom Honours in Accounting
External 10 March 2016
-- 4
Ms. Pumla Mzizi CA (SA), BCom Hons in Transport Economics, BCompt Honours, BBusSc Honours in Finance
External 10 March 2016
-- 4
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We are pleased to present our report for the financial year ended 31 March 2017.
Audit and Risk Committee Responsibility
The Audit and Risk Committee reports that it has complied with its responsibilities arising from Section 38(1) (a) (ii) of the Public Finance Management Act and Treasury Regulation 3.1.13. The Audit and Risk Committee also reports that it has adopted appropriate formal terms of reference as its Audit and Risk Committee Charter, has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein.
The Effectiveness of Internal Control
The system of internal control is designed to provide cost-effective assurance that assets are safeguarded and that liabilities are effectively managed. In line with the PFMA requirements, Internal Audit and the Auditor-General of South Africa (AGSA) provide the Audit and Risk Committee and management with the assurance that the internal controls are appropriate and effective. This is achieved through a quarterly reporting process to both management and the Audit and Risk Committee, as well as the identification of corrective actions and recommendations by means of enhancements to the controls and processes.
The system of internal control was effective during the year under review. However, there are three instances of non-compliance with internal controls as reported by AG.
Internal Audit
The Audit and Risk Committee reviewed and approved the annual internal audit plan for 2016/2017 and monitored performance of Internal Audit against the plan on a quarterly basis. The Audit and Risk Committee is concerned with regard to the capacity of the Internal Audit Function to discharge its duties effectively. The Audit and Risk Committee is satisfied that Internal Audit has discharged its mandate. However, the Audit and Risk Committee is concerned about the capacity of the unit as it is a shared function. The committee has brought this to the attention of management.
Risk Management
The Audit and Risk Committee has monitored the implementation of a Risk Management policy and strategy. This included the strategic risks assessments and the fraud risk assessments.
Progress reports on the Risk Management Processes are presented to the Audit and Risk Committee on a quarterly basis.
The committee has seen progress on the implementation of Risk Management Processes during the year under review. Hence there is room for improvement.
In-Year Management and Monthly/ Quarterly Reports
The CPSI has reported quarterly to National Treasury as required by the PFMA. The Audit and Risk Committee is satisfied with the content and quality of monthly and quarterly reports prepared and issued by the Accounting Officer of CPSI during the
1 2 AUDIT AND RISK COMMITTEE REPORT
The sys tem of in ternal contro l i s des igned to provide cos t -e f fec t ive assurance that asse t s are safeguarded and that l iabi l i t i e s are e f fec t ive ly managed.
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year under review. There continues to be notable improvements to the quality of performance information and financial management reports as well as management`s commitment to implementing improvements recommended in the past year.
Evaluation of Financial Statements
The Audit and Risk Committee has:
• reviewed and discussed the un-audited financial statements to be included in the annual report, with management and the Accounting Officer;
• reviewed the CPSI compliance with legal and regulatory provisions;• reviewed un-audited financial statements for any significant adjustments resulting from the internal audit
report , and• reviewed information on predetermined objectives to be included in the annual report.
ADV. W.E. HUMACHAIRPERSON OF THE AUDIT AND RISK COMMITTEECENTRE FOR PUBLIC SERVICE INNOVATION
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PA R T B : H U M A N R E S O U R C E M A N A G E M E N T
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
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1 INTRODUCTION
The status of human resources in the department
As at 31 March 2017, the total number of funded posts in the CPSI was 34 of which 3 were vacant. This includes posts funded by voted appropriated funds and posts funded from donor funds (i.e. the General Budget Support Fund). During the period under review, the CPSI appointed 2 officials.
The number of employees with disabilities at the CPSI was 2 (6.45%).
2 OVERVIEW OF HUMAN RESOURCES
Human resource priorities for the year under review and the impact of these
During the year under review the CPSI developed and implemented HR policies and procedures to ensure statutory compliance and proper internal control. Training and development of officials in the Human Resource Management component received priority, for example training on job evaluation, risk management and on transversal systems. A Job Evaluation Panel was established and operationalized.
Workforce planning and key strategies to attract and recruit a skilled and capable workforce
The CPSI appointed two employees on the fixed establishment during the 2016/17 financial year. Another three posts were advertised and interviews were held.
The CPSI continued to empower its staff in different areas in order to have multi skilled staff. Support staff members in Programme 2: Public Service Innovation were trained in areas of Corporate Services (i.e. Supply Chain Management, Human Resource Management and Financial Administration) in an attempt to supplement the shortage of staff in the organisation.
Employee performance management
During the year under reviewed the CPSI applied the PMDS system for SMS and levels 1-12. None of the SMS member’s annual assessments were rated as having underperformed. 9 officials (3 senior managers, and 6 officials from level 1-12) were awarded performance bonuses
The application of the DPSA PMDS system in terms of timeframes and structuring of committees has been
a challenge. A CPSI specific policy was developed to cater for the size and the structure of the CPSI as an independently operating government component, which will be effective from the next reporting cycle.
Employee wellness programmes
The CPSI is sharing in the Employee Health and Wellness (EH&W) Programme with the DPSA, in terms of the Memorandum of Understanding between the two organisations. Furthermore, CPSI employees were provided with the opportunity to participate in wellness programmes arranged with the support of GEMS, Labour Unions and other wellness organisations. It is anticipated that the CPSI will enter into a formal agreement, with a service provider to address Employee Health and Wellness activities in the next financial year.
Achievements and challenges faced, as well as future human resource plans/goals
AchievementsIn consultation with staff members, policies such as the PMDS, Bereavement and Hospitalisation and Overtime were developed and approved by the Accounting Officer.
Officials were trained and developed in areas of need as identified in their Personal Development Plans.
ChallengesCapacity to ensure compliance to statutory requirements remains a challenge, as the Human and Resource Management Component have only two staff members to monitor adherence. The reduction in the Organisation’s compensation budget by National Treasury has impacted negatively on the CPSI’s human resources capacity.
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Future human resource plansTo ensure that the CPSI delivers on its mandate and complies with the provisions of the Public Service Act and Regulations as well as all the Directives issued, it will, funds permitting, increase its capacity in the middle management technical levels.
Due to financial and capacity constraints, the CPSI will continue with a shared services arrangement with the DPSA in areas such as Internal Audit and Risk Management, Legal Services, Internal Labour Relations and Employee Health and Wellness structures.
The CPSI is in constant negotiations with the DPSA and National Treasury to secure additional funds to establish all the legally required functions. The need for the CPSI to have its own established structures has been emphasised by the Audit and Risk Committee on numerous occasions.
3 HUMAN RESOURCES OVERSIGHT STATISTICS
3.1. Personnel related expenditure
Table 3.1.1 Personnel expenditure by Programme for the period 1 April 2016 and 31 March 2017
Programme Total expenditure
(R’000)
Personnel expenditure
(R’000)
Training expenditure
(R’000)
Professional and services expenditure
(R’000)
Personnel expenditure
as a % of total
expenditure
Personnel expenditure
as a % of total
expenditure
Programme 1: Administration 17 909 7 827 72 690 44% 489
Programme 2: Public Service Innovation
13 498 7 766 140 899 58% 518
Total 31 407 15 593 212 1 589 50% 503
Salary band Personnel expenditure
(R'000)
% of total personnel cost
No. of employees
Average personnel cost per employee
(R'000)
Lower skilled (Levels 1-2) 289 2% 2 145
Skilled (Levels 3-5) 900 6% 3 300
Highly skilled production (Levels 6-8) 2 409 15% 9 268
Highly skilled supervision (Levels 9-12) 4 909 31% 11 446
Senior and Top management (Levels 13-16) 7 086 45% 6 1 181
Total 15 593 100% 31 520
Table 3.1.2 Personnel costs by salary band for the period 1 April 2016 and 31 March 2017
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Table 3.1.3 Salaries, Overtime, Home Owners Allowance and Medical Aid by programme for the period 1 April 2016 and 31 March 2017
Programme Salaries Overtime Home Owners Allowance
Medical Aid
Amount (R'000)
Salaries as a % of personnel
costs
Amount (R'000)
Overtime as a % of personnel
costs
Amount (R'000)
HOA as a % of
personnel costs
Amount (R'000)
Medical Aid as a % of
personnel costs
Programme 1: Administration
5 329 68.1% 65 0.8% 118 1.5% 230 2.9%
Programme 2: Public Sector Innovation
4 907 63.2% 1 0.0% 151 1.9% 220 2.8%
Total 10 236 65.6% 66 0.4% 269 1.7% 450 2.9%
Table 3.1.4 Salaries, Overtime, Home Owners Allowance and Medical Aid by salary band for the period 1 April 2016 and 31 March 2017
Programme Salaries Overtime Home Owners Allowance
Medical Aid
Amount (R'000)
Salaries as a % of personnel
costs
Amount (R'000)
Overtime as a % of personnel
costs
Amount (R'000)
HOA as a % of
personnel costs
Amount (R'000)
Medical Aid as a % of
personnel costs
Skilled (level 1-2) 72 24.9% 1 0.3% 18 6.2% 25 8.7%
Skilled (level 3-5) 401 44.6% 38 4.2% 43 4.8% 92 10.2%
Highly skilled production (levels 6-8)
1 025 42.5% - 0.0% 114 4.7% 219 9.1%
Highly skilled supervision (levels 9-12)
3 255 66.3% 27 0.6% 15 0.3% 39 0.8%
Senior management (level 13-16)
5 483 77.4% - 0.0% 79 1.1% 75 1.1%
Total 10 236 65.6% 66 0.4% 269 1.7% 450 2.9%
3.2. Employment and Vacancies
Table 3.2.1 Employment and vacancies by programme as on 31 March 2017
Programme Number of posts on approved
establishment
Number of posts filled
Vacancy Rate Number of employees additional
to the establishment
Programme 1: Administration 18 16 11% -
Programme 2: Public Service Innovation 16 15 6% 4
Total 34 31 9% 4
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Salary band Number of posts on approved
establishment
Number of posts filled
Vacancy Rate Number of employees additional
to the establishment
Lower skilled (Levels 1-2) 2 2 0% -
Skilled ) Levels 3-5) 3 3 0% -
Highly skilled production (Levels 6-8) 10 9 10% -
Highly skilled supervision (Levels 9-12) 13 11 15% 4
Senior and Top management (Levels 13-16) 6 6 0% -
Total 34 31 9% 4
Table 3.2.2 Employment and vacancies by salary band as on 31 March 2017
3.3. Filling of SMS Posts
Table 3.3.1 SMS post information as on 31 March 2017
SMS Level Total number of funded SMS
posts
Total number of SMS posts
filled
% of SMS posts filled
Total number of SMS posts
vacant
% of SMS posts vacant
Head of Department 1 1 100% - 0%
Salary Level 16 - - 0% - 0%
Salary Level 15 - - 0% - 0%
Salary Level 14 3 3 100% - 0%
Salary Level 13 2 2 100% - 0%
Total 6 6 100% - 0%
Table 3.3.2 SMS post information as on 30 September 2016
SMS Level Total number of funded SMS
posts
Total number of SMS posts
filled
% of SMS posts filled
Total number of SMS posts
vacant
% of SMS posts vacant
Head of Department 1 1 100% - 0%
Salary Level 16 - - 0% - 0%
Salary Level 15 - - 0% - 0%
Salary Level 14 3 3 100% - 0%
Salary Level 13 2 2 100% - 0%
Total 6 6 100% - 0%
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 6 6
Table 3.3.3 Advertising and filling of SMS posts for the period 1 April 2016 and 31 March 2017
SMS Level Advertising Filling of posts
Number of vacancies per level advertised in 6 months of becoming
vacant
number of vacancies per level filled in 6 months
of becoming vacant
number of vacancies per level not filled in 6 months but filled in 12
months
Head of Department - - -
Salary Level 16 - - -
Salary Level 15 - - -
Salary Level 14 - - -
Salary Level 13 - - -
Total - - -
Table 3.3.4 Reasons for not having complied with the filling of funded vacant SMS - Advertised within 6 months and filled within 12 months after becoming vacant for the period 1 April 2016 and 31 March 2017
Reasons for vacancies not advertised within six months
Not Applicable
Reasons for vacancies not filled within twelve months
Not Applicable
Table 3.3.5 Disciplinary steps taken for not complying with the prescribed timeframes for filling SMS posts within 12 months for the period 1 April 2016 and 31 March 2017
Reasons for vacancies not advertised within six months
No steps taken during this period against any manager
Reasons for vacancies not filled within twelve months
No steps taken during this period against any manager
Table 3.3.3 Advertising and filling of SMS posts for the period 1 April 2016 and 31 March 2017
SMS Level Advertising Filling of posts
Number of vacancies per level advertised in 6 months of becoming
vacant
number of vacancies per level filled in 6 months
of becoming vacant
number of vacancies per level not filled in 6 months but filled in 12
months
Head of Department - - -
Salary Level 16 - - -
Salary Level 15 - - -
Salary Level 14 - - -
Salary Level 13 - - -
Total - - -
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 6 7
Salary band Number of posts on approved
establishment
Number of Jobs
Evaluated
% of posts evaluated by salary
bands
Posts Upgraded Posts Downgraded
Number % of posts evaluated
Number % of posts evaluated
Lower Skilled (Levels 1-2)
2 - 0% - - - -
Skilled (Levels 3-5) 3 - 0% - - - -Highly Skilled (Levels 6-8)
10 2 20% - - - -
Highly Skilled supervision (Levels 9-12)
13 2 15% - - - -
Senior Management Service Band A
2 - 0% - - - -
Senior Management Service Band B
3 - 0% - - - -
Senior Management Service Band C
1 - 0% - - - -
Senior Management Service Band D
- - 0%
Total 34 4 12% - - - -
3.4. Job Evaluation
Table 3.4.1 Job Evaluation by Salary band for the period 1 April 2016 and 31 March 2017
Table 3.4.2 Profile of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2016 and 31 March 2017
Total number of employees whose positions were upgraded due to their posts being upgraded None
Table 3.4.3 Employees with salary levels higher than those determined by job evaluation by occupation for the period 1 April 2016 and 31 March 2017
Total number of employees whose salaries exceeded the level determined by job evaluation None
Table 3.4.4 Profile of employees who have salary levels higher than those determined by job evaluation for the period 1 April 2016 and 31 March 2017
Total number of Employees whose salaries exceeded the grades determine by job evaluation None
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 6 8
Salary band Number of employ-ment beginning of
period – 1 April 2016
Appointments and transfers
into department
Terminations and transfers into
the department
Turnover rate
Lower Skilled (Levels 1-2) 2 1 1 33%
Skilled (Levels 3-5) 3 - - 0%
Highly Skilled (Levels 6-8) 8 1 - 0%
Highly Skilled supervision (Levels 9-12) 7 - - 0%
Senior Management Service Band A 2 - - 0%
Senior Management Service Band B 3 - - 0%
Senior Management Service Band C 1 - 0%
Senior Management Service Band D - - - 0%
Contracts additional to the establishment
Lower Skilled (Levels 1-2) - - - 0%
Skilled (Levels 3-5) - - - 0%
Highly Skilled (Levels 6-8) - - - 0%
Highly Skilled supervision (Levels 9-12) 4 - - 0%
Senior Management Service Band A - - - 0%
Senior Management Service Band B - - - 0%
Senior Management Service Band C - - - 0%
Senior Management Service Band D - - - 0%
Total 30 2 1 3%
3.5. Employment Changes
Table 3.5.1 Annual turnover rates by salary band for the period 1 April 2016 and 31 March 2017
Table 3.5.2 Annual turnover rates by critical occupation for the period 1 April 2016 and 31 March 2017
Critical occupation Number of employees at beginning of period - 1 April 2016
Appointments and transfers into the department
terminations and transfers out of the department
None - - -
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 6 9
Table 3.5.3 Reasons why staff left the organisation for the period 1 April 2016 and 31 March 2017
Termination type Number % of Total Resignations
Death 1 100%
Resignation - 0%
Expiry of contract - 0%
Dismissal - operational changes - 0%
Dismissal - misconduct - 0%
Dismissal - inefficiency - 0%
Discharged due to ill-health - 0%
Retirement - 0%
Transfer to other Public Service Departments - 0%
Other - 0%
Total 1 100%
Total number of employees who left as a % of total employment 3%
Table 3.5.4 Promotions by critical occupation for the period 1 April 2016 and 31 March 2017
Occupational Employees 1 April 2016 Promotions to another salary level
Salary level promotions as a % of employees by occupation
Progressions to another notch within a salary level
None - - - -
Table 3.5.5 Promotions by salary band for the period 1 April 2016 and 31 March 2017
Total number of Promotions by salary band None
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 7 0
Occupational category Male Female Total
African Coloured Indian White African Coloured Indian White
L13-16 Legislators, senior officials and managers
1 - - 1 3 - - 1 6
L9-12 Professionals 4 - - - 7 - - - 11
L6-8 Technicians and associates professionals
3 - - - 5 - - 1 9
L3-5 Clerks 2 - - - 1 - - - 3
Senior and sales workers - - - - - - -
Skilled agriculture and fishery workers
- - - - - - - - -
Plant and machine operators and assemblers
- - - - - - - - -
L2 Elementary occupations - - - - 2 - - - 2
Total 10 - - 1 18 - - 2 31
Employees with disabilities 2 - - - - - - - -
3.6. Employment Equity
Table 3.6.1 Total number of employees (including employees with disabilities) in each of the following occupational categories as on 31 March 2017
Occupational category Male Female Total
African Coloured Indian White African Coloured Indian White
L15 Top Management - - - - 1 - - - 1
L13-14 Senior Management 1 - - 1 2 - - 1 5
L9-12 Professionally qualified and experienced special-ists and mid-management
4 - - - 7 - - - 11
L6-8 Skilled technical and academically qualified workers, junior management supervisors foreman and superinten-dents
3 - - - 5 - - 1 9
L3-5 Semi-skilled and discretionary decision making
2 - - - 1 - - - 3
L2 Unskilled and defined decision making
- - - - 2 - - - 2
Total 10 - - 1 18 - - 2 31
Table 3.6.2 Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2017
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 7 1
Occupational category Male Female Total
African Coloured Indian White African Coloured Indian White
L15 Top Management - - - - - - - - -
L13-14 Senior Management - - - - - - - - -
L9-12 Professionally qualified and experienced special-ists and mid-management
- - - - - - - - -
L6-8 Skilled technical and academically qualified workers, junior management supervisors foreman and superinten-dents
- - - - - - - 1 1
L3-5 Semi-skilled and discretionary decision making
- - - - - - - - -
L2 Unskilled and defined decision making
- - - - 1 - - - 1
Total - - - - 1 - - 1 2
Employees with disabilities - - - - - - - - -
Table 3.6.2 Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2017
Table 3.6.4 Promotions for the period 1 April 2016 to 31 March 2017
There were no promotions during the period under review.
Occupational category Male Female Total
African Coloured Indian White African Coloured Indian White
Top Management - - - - - - - - -
Senior Management - - - - - - - - -
Professionally qualified and experienced specialists and mid-management
- - - - - - - - -
Skilled technical and academically qualified workers, junior management supervisors foreman and superintendents
- - - - - - - - -
Semi-skilled and discretionary decision making
- - - - - - - - -
Unskilled and defined decision making
- - - - 1 - - - 1
Total - - - - 1 - - - 1
Employees with disabilities - - - - - - - - -
Table 3.6.5 Terminations for the period 1 April 2016 to 31 March 2017
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 7 2
Occupational category Male Female Total
African Coloured Indian White African Coloured Indian White
None - - - - - - - - -
Table 3.6.6 Disciplinary action for the period 1 April 2016 to 31 March 2017
Occupational category Male Female Total
African Coloured Indian White African Coloured Indian White
Legislators, senior official and managers
1 - - 1 3 - - 1 6
Professionals 7 - - - 5 - - - 12
Technicians and associates professionals
1 - - - 3 - - - 4
Clerks - - - - - - - 1 1
Senior and sales workers - - - - - - - - -
Skilled agriculture and fishery workers
- - - - - - - - -
Plant and machine operators and assemblers
- - - - - - - - -
Elementary occupations - - - - - - - - -
Total 9 - - 1 11 - - 2 23
Table 3.6.7 Skills development for the period 1 April 2016 to 31 March 2017
SMS Level Total number of funded SMS posts
Total number of SMS members
Total number of signed performance
agreements
Signed performance agreements as %
total number of SMS members
Head of Department 1 1 1 100%
Salary Level 16 - - - 0%
Salary Level 15 - - - 0%
Salary Level 14 3 3 3 100%
Salary Level 13 2 2 2 100%
Total 6 6 6 100%
3.7. Signing of Performance Agreements by SMS Members
Table 3.7.1 Signing of Performance Agreements by SMS members as on 31 May 2016
Table 3.7.2 Reasons for not having concluded Performance agreements for all SMS members as on 31 May 2016
Reasons
Not applicable
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 7 3
Table 3.7.3 Disciplinary steps taken against SMS members for not having concluded Performance agreements as on 31 May 2016
Reasons
Not applicable
3.8. Performance Rewards
Table 3.8.1 Performance Rewards by race, gender and disability for the period 1 April 2016 to 31 March 2017
Race and Gender Beneficiary Profile Cost
Number of beneficiaries
Number of employees
% of total within group
Cost (R'000) Average cost per employees
African
Male 1 10 10% 21 21
Female 5 18 28% 119 24
Asian
Male - - 0% - -
Female - - 0% - -
Coloured
Male - - 0% - -
Female - - 0% - -
White
Male 1 1 100% 45 45
Female 2 2 100% 47 24
Total 9 31 29% 232 26
*Note: Includes two employees paid from donor funds, which is additional to the establishment
Table 3.8.2 Performance Rewards by salary band for personnel below Senior Management Service for the period 1 April 2016 to 31 March 2017
Race and Gender Beneficiary Profile Cost Total cost as a % of the total
personnel expenditure
Number of beneficiaries
Number of employees
% of total within salary
bands
Total Cost (R'000)
Average cost per
employees
Lower Skilled (Levels 1-2) 1 2 50% 4 4 0.02%
Skilled (Levels 3-5) 1 3 33% 11 11 0.07%
Highly Skilled production (Levels 6-8)
- 9 0% - - 0.00%
Highly Skilled Supervision (Levels 9-12)
4 11 36% 76 19 0.48%
Total 6 25 24% 90 15 0.58%
*Note: Includes two employees paid from donor funds, which is additional to the establishment
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 7 4
Table 3.8.3 Performance Rewards by critical occupation for the period 1 April 2016 to 31 March 2017
Critical occupation Beneficiary Profile Cost
Number of beneficiaries
Number of employees
% of total within
occupation
Total Cost (R'000)
Average cost per
employees
None - - - - -
Table 3.8.4 Performance related rewards (cash bonus), by salary band for Senior Management Service for the period 1 April 2016 to 31 March 2017
Salary band Beneficiary Profile Cost Total cost as a % of the total
personnel expenditure
Number of beneficiaries
Number of employees
% of total within salary
bands
Total Cost (R'000)
Average cost per
employees
Band A 1 2 50% 37 37 0.24%
Band B 2 3 67% 90 45 0.58%
Band C - 1 0% - - 0.00%
Band D - - 0% - - 0.00%
Total 3 6 50% 127 82 0.81%
Total number of foreign workers by salary band None
3.9. Foreign Workers
Table 3.9.1 Foreign workers by salary band for the period 1 April 2016 and 31 March 2017
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 7 5
Salary band Total days % Days with Medical
certification
Number of Employees using sick
leave
% of total of employees using sick
leave
Average days per
employees
Estimated Cost (R'000)
Lower Skills (Level 1-2) 50 100% 3 14% 17 19
Skilled (Levels 3-5) 20 90% 4 18% 5 15
Highly skilled production (Levels 6-8)
55 78% 7 32% 8 58
Highly skilled supervision (Level 9-12)
43 74% 6 27% 7 99
Top and Senior management (Levels 13-16)
10 80% 2 9% 5 37
Total 178 4 22 100% 42 228
3.10. Leave utilisation
Table 3.10.1 Sick leave for the period 1 January 2016 to 31 December 2016
Salary band Total days % Days with Medical
certification
Number of Employees using sick
leave
% of total of employees using sick
leave
Average days per
employees
Estimated Cost (R'000)
Lower Skills (Level 1-2) 36 100% 1 50% 36 16
Skilled (Levels 3-5) - - - 0% - -
Highly skilled production (Levels 6-8)
- - - 0% - -
Highly skilled supervision (Level 9-12)
- - - 0% - -
Top and Senior management (Levels 13-16)
- - - 0% - -
Total 36 1 1 0% 36 16
Table 3.10.2 Disability leave (temporary and permanent) for the period 1 January 2016 to 31 December 2016
Salary band Total days taken Number of Employees using
annual leave
Averageemployee
Lower Skills (Level 1-2) 44 2 22
Skilled (Levels 3-5) 123 4 31
Highly skilled production (Levels 6-8) 246 8 31
Highly skilled supervision (Level 9-12) 267 11 24
Top and Senior management (Levels 13-16) 150 6 25
Total 830 31 133
Table 3.10.3 Annual Leave for the period 1 January 2016 to 31 December 2016
Capped leave None
Table 3.10.4 Capped leave for the period 1 January 2016 to 31 December 2016
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 7 6
Reason Total amount (R'000)
Number of em ployees
Average per employee (R'000)
Leave pay-out for 2014 due non-utilisation of leave for the previous cycle
- - -
Capped leave pay-outs on termination of service for 2015 - - -
Current leave pay-out on termination of service 2016 1 1 1
Total 1 1 1
Table 3.10.5 Leave pay-outs for the period 1 April 2016 and 31 March 2017
3.11. HIV/AIDS and Health Promotion Programmes
Table 3.11.1 Steps taken to reduce the risk of occupational exposure
Units/categories of employees identified to be at risk of contracting HIV and related diseases (if any)
Key steps taken to reduce the risk
None
Question Yes No Details, if yes
1. Has the department designated a member of the SMS to implement the provisions contained in Chapter 4, Part 3 of the Public Service Regulations, 2016 If so, provide her/his name and position.
X Ms. Annette Snyman, Director: Corporate Services
2. Does the department have a dedicated unit or has it designated specific staff members to promote the health and well-being of your employees? If so, indicate the number of employees who are in-volved in this task and the annual budget that is available for this purpose.
X Yes, the functions is part of the Corporate Resource Management
3. Has the department introduced an Employee Assistance or Health Promotion Programme for your employees? If so, indicate the key elements/service of this Programme.
X Yes, The CPSI has a shared service arrangement with DPSA on the Employee Health and Wellness Programme and the organisation is also raising awareness in relation to issues of health
4. Has the department established (a) committee(s) as contemplated in Chapter 4, Part 3 of the Public Service Regulations, 2016? If so, please provide the names of the members of the committee and the stakeholder(s) that they represent.
X The committee was not established but two ethics officers were appointed (Ms Sebone and Mr Matjeke)
5. Has the department reviewed its employment policies to ensure that these do not unfairly discriminates against employees on the basis of their HIV status? If so, list the employments poli-cies/practices so reviewed.
X All policies are fair and non-discriminatory. The organisation is continuously developing new policies
6. Has the department introduced measures to protect HIV-positive employees or those perceived to be HIV-positive from discrimina-tion? If so, list the key elements of those measures.
X No employee disclosed their status
7. Does the department encourage its employees to undergo Volun-tary Counselling and Testing? If so, list the results that you have you achieved.
X The organisation arranged with GEMS to conduct voluntary Health screening
8. Has the department developed measures/indicators to monitor & evaluate the impact of its health promotion Programme? If so, list these measures/indicators.
X The CPSI has a shared service arrangement with DPSA on the Employee Health and Wellness Pro-gramme
Table 3.11.2 Details of Health Promotion and HIV/AIDS Programmes
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 7 7
Total number of Collective Agreements None
3.12. Labour Relations
Table 3.12.1 Collective agreements for the period 1 April 2016 and 31 March 2017
Misconduct and disciplinary hearings None
Table 3.12.2 Misconduct and disciplinary hearings finalised for the period 1 April 2016 and 31 March 2017
Table 3.12.3 Types of misconduct addressed at disciplinary hearings for the period 1 April 2016 and 31 March 2017
Type of misconduct Number % of total
None
Grievances logged None
Table 3.12.4 Grievances logged for the period 1 April 2016 and 31 March 2017
Disputes logged with Councils None
Table 3.12.5 Disputes logged with Councils for the period 1 April 2016 and 31 March 2017
Total number of persons working days lost -
Total costs working days lost -
Amount recovered as a result of no work no pay (R'000) -
Table 3.12.6 Strike actions for the period 1 April 2016 and 31 March 2017
Number of people suspended -
Number of people whose suspension exceeded 30 days -
Average number of days suspended -
Cost of suspension (R'000) -
Table 3.12.7 Precautionary suspensions for the period 1 April 2016 and 31 March 2017
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 7 8
Occupational category Gender Number of employees as at 1 April
2016
Training needs identified at the reporting period
Learnership Skills Programmes
and other short courses
Other forms of training
Total
Legislators, senior officials and managers
Female 4 - 7 - 7
Male 2 - 4 - 4
Professionals Female 7 - 11 - 11
Male 4 - 6 - 6
Technicians and associate professionals
Female 6 - 2 - 2
Male 3 - 1 - 1
Clerks Female 1 - 1 - 1
Male 2 - - - -
Service and sales workers Female - - - - -
Male - - - - -
Skilled agriculture and fishery workers
Female - - - - -
Male - - - - -
Craft and related trades work-ers
Female - - - -
Male - - - - -
Plant and machine operators and assemblers
Female - - - - -
Male - - - - -
Elementary occupations Female 2 - - - -
Male - - - - -
Sub Total Female 20 - 21 - 21
Male 11 - 11 - 11
Total 31 - 32 - 32
3.13. Skills development
Table 3.13.1 Training needs identified for the period 1 April 2016 and 31 March 2017
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 7 9
Occupational category Gender Number of employees as at 1 April
2016
Training needs identified at the reporting period
Learnership Skills Programmes
and other short courses
Other forms of training
Total
Legislators, senior officials and managers
Female 4 - 7 - 7
Male 2 - 4 - 4
Professionals Female 7 - 11 - 11
Male 4 - 6 - 6
Technicians and associate professionals
Female 6 - 2 - 2
Male 3 - 1 - 1
Clerks Female 1 - 1 - 1
Male 2 - - - -
Service and sales workers Female - - - - -
Male - - - - -
Skilled agriculture and fishery workers
Female - - - - -
Male - - - - -
Craft and related trades workers
Female - - - - -
Male - - - - -
Plant and machine operators and assemblers
Female - - - - -
Male - - - - -
Elementary occupations Female 2 - - - -
Male - - - - -
Sub Total Female 20 - 21 - 21
Male 11 - 11 - 11
Total 31 - 32 - 32
Table 3.13.2 Training provided for the period 1 April 2016 and 31 March 2017
Injury on duty None
3.14. Injury on duty
Table 3.14.1 Injury on duty for the period 1 April 2016 and 31 March 2017
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 8 0
3.15. Utilisation of Consultants
Table 3.15.1 Report on consultant appointments using appropriated funds for the period 1 April 2016 and 31 March 2017
Projects title Total number of con-sultants that worked on project
Duration (work days)
Contract value in Rand
Consultants and professional service
Audit and Risk Management member for CPSI 3 1 58 784.00
Audit and Risk Management member for CPSI 4 1 64 128.00
Audit and Risk Management member for CPSI 2 1 24 048.00
Audit and Risk Management member for CPSI 4 1 82 832.00
PILIR, monthly HRM fees March 2016 based on 31 heads at a unit price of R9, 97 per head.
1 1 319.04
PILIR, monthly HRM fees April 2016 based on 31 heads at a unit price of R9, 97 per head.
1 1 319.04
PILIR, monthly HRM fees May 2016 based on 31 heads at a unit price of R9, 97 per head.
1 1 319.04
PILIR, monthly HRM fees June 2016 based on 31 heads at a unit price of R9, 97 per head.
1 1 319.04
PILIR, monthly HRM fees July 2016 based on 31 heads at a unit price of R9, 97 per head.
1 1 319.04
PILIR, monthly HRM fees August 2016 based on 31 heads at a unit price of R9, 97 per head.
1 1 319.04
PILIR, monthly HRM fees September 2016 based on 31 heads at a unit price of R9, 97 per head.
1 1 319.04
PILIR, monthly HRM fees October 2016 based on 31 heads at a unit price of R9, 97 per head.
1 1 319.04
PILIR, monthly HRM fees November 2016 based on 31 heads at a unit price of R9, 97 per head.
1 1 319.04
PILIR, monthly HRM fees December 2016 based on 31 heads at a unit price of R9, 97 per head.
1 1 319.04
PILIR, monthly HRM fees January 2017 based on 31 heads at a unit price of R9, 97 per head.
1 1 319.04
PILIR, monthly HRM fees February 2017 based on 31 heads at a unit price of R9, 97 per head.
1 1 319.04
Development of a Disaster Recovery Plan for the CPSI 1 1 245 000.00
Contractors
Master of Ceremony services during the 2016 UNPAN Workshop dinner
1 1 10 750.00
Master of Ceremony services during the 2016 CPSI Innovation Conference gala dinner
1 1 19 800.00
Hire of Audio Visual technicians and equipment during the 2016 CPSI Innova-tion Conference
1 1 250 800.00
Hire of Audio Visual technicians and equipment during the 2016 CPSI Innova-tion Awards Ceremony
1 1 182 400.00
Hire of Audio Visual technicians and equipment during the 2016 CPSI Innova-tion Awards Ceremony
1 1 182 400.00
Casual Labourers to assist for moving of furniture to the ground floor and to rearrange furniture on the first floor
1 4 2 647.40
Casual Labourers to assist for moving of furniture to the ground floor and to rearrange furniture on the first floor
1 3 1 866.20
Casual Labourers to assist for moving of furniture to the ground floor and to rearrange furniture on the first floor
1 3 1 909.60
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 8 1
Projects title Total number of con-sultants that worked on project
Duration (work days)
Contract value in Rand
Consultants and professional service
Casual Labourers to assist for moving of furniture to the ground floor and to rearrange furniture on the first floor
1 3 1 909.60
Casual Labourers to assist for moving of furniture to the ground floor and to rearrange furniture on the first floor
1 4 2 430.40
Casual Labourers to assist for moving of furniture to the ground floor and to rearrange furniture on the first floor
2 1 260.40
Events Management for the 2016 CPSI Innovation Conference
1 1 55 860.00
Events Management for the UNPAN workshop and 2016 Call for Entries of the 2016 CPSI Awards Programme
1 1 6 441.00
Events Management for the 2016 CPSI Innovation Conference
1 1 55 860.00
Events Management for the 2016 CPSI Award ceremony 1 1 45 058.50
Events Management for the 2016 CPSI Award ceremony 1 1 45 058.50
Facilitation of Public Service Innovation Workshop 2 1 1 45 000.00
Flowers for a deceased employee 1 1 239.00
Electrical maintenance services 1 1 25 309.14
Electrical maintenance services 1 1 16 319.10
Electrical maintenance services 1 1 6 171.96
Installation of additional security alarms and equipment 1 1 29 251.26
Maintenance of Boardroom furniture 1 1 6 384.00
Projects title Percentage ownership by HDI groups
Percentage management by HDI groups
Number of consultants from HDI groups that work on
the project
None - - -
Table 3.15.2 Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2016 and 31 March 2017
Projects title Total number of consultants that worked on project
Duration (Work days) Donor and contract value in Rand
None - - -
Table 3.15.3 Report on consultant appointments using Donor funds for the period 1 April 2016 and 31 March 2017
Projects title Percentage ownership by HDI groups
Percentage management by HDI groups
Number of consultants from HDI groups that work on
the project
None - - -
Table 3.15.4 Analysis of consultant appointments using Donor funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2016 and 31 March 2017
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 8 2
Granting of employee initiated severance packages None
3.16. Severance Packages
Table 3.16.1 Granting of employee initiated severance packages for the period 1 April 2016 and 31 March 2017
V O T E N O 4 7 A N N U A L R E P O R T
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PA R T E : F I N A N C I A L I N F O R M A T I O N
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 8 4
Report on the audit of the financial statements
Opinion
1. I have audited the financial statements of the Centre for Public Service Innovation set out on pages 88 to 115 which comprise the appropriation statement, the statement of financial position as at 31 March 2017, and the statement of financial performance, statement of changes in net assets, and cash flow statement for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies.
2. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Centre for Public Service Innovation as at 31 March 2017, and its financial performance and cash flows for the year then ended in accordance with the Modified Cash Standard (MCS) prescribed by National Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA).
Basis for opinion
3. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general’s responsibilities for the audit of the financial statements section of my report.
4. I am independent of the government component in accordance with the International Ethics Standards Board for Accountants’ Code of ethics for professional accountants (IESBA code) together with the ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA code.
5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Other matter
6. I draw attention to the matter below. My opinion is not modified in respect of this matter.
7. Unaudited supplementary schedules
The supplementary information set out on pages 116 to 117 does not form part of the financial statements and is presented as additional information. I have not audited these schedules and, accordingly, I do not express an opinion thereon.
Responsibilities of the Accounting Officer for the financial statements
8. The accounting officer is responsible for the preparation and fair presentation of the financial statements in accordance with MCS and the requirements of
REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON VOTE NO. 47: CENTRE FOR PUBLIC SERVICE INNOVATION
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 8 5
the PFMA and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
9. In preparing the financial statements, the accounting officer is responsible for assessing the CPSI’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless there is an intention either to liquidate the government component or to cease operations, or there is no realistic alternative but to do so.
Auditor-general’s responsibilities for the audit of thefinancial statements
10. My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
11. A further description of my responsibilities for the audit of the financial statements is included in the annexure to the auditor’s report.
Report on the audit of the annual performance report
Introduction and scope
12. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and the general notice issued in terms thereof I have a responsibility to report material findings on the reported performance information against predetermined objectives for the selected programme presented in the annual performance report. I performed procedures to identify findings but not to gather evidence to express assurance.
13. My procedures address the reported performance information, which must be based on the approved performance planning documents of the entity. I have not evaluated the completeness and appropriateness of the performance indicators
Programme Pages in the annual performance report
Programme 2 - Public sector innovation
38 – 48
15. I performed procedures to determine whether the reported performance information was properly presented and whether performance was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.
16. I did not identify any material findings on the usefulness and reliability of the reported performance information for the following programme:
• Programme 2 – Public Sector Innovation
Other matter
17. Although I identified no material findings on the usefulness and reliability of the reported performance information for the selected programme, I draw attention to the following matter:
18. Achievement of planned targets
Refer to the annual performance report on pages 38 to 48 for information on the achievement of planned targets for the year and explanations provided for the under and overachievements of targets.
included in the planning documents. My procedures also did not extend to any disclosures or assertions relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information. Accordingly, my findings do not extend to these matters.
14. I evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework, as defined in the general notice, for the following selected programme presented in the annual performance report of the government component for the year ended 31 March 2017:
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 8 6
Report on audit of compliance with legislation
Introduction and scope
19. In accordance with the PAA and the general notice issued in terms thereof I have a responsibility to report material findings on the compliance of the government component with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance.
20. The material finding in respect of the compliance criteria for the applicable subject matter is as follows:
21. Procurement and contract management
• Contracts were extended or modified without the approval of a properly delegated official as required by Treasury Regulation 8.1 and 8.2. and section 44 of the PFMA.
Other information
22. The Centre for Public Service Innovation’s accounting officer is responsible for the other information. The other information does not include the financial statements, the auditor’s report thereon and the selected programme presented in the annual performance report that have been specifically reported on in the auditor’s report.
23. My opinion on the financial statements and findings
on the reported performance information and compliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.
24. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected programme presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed on the other information obtained prior to the date of this auditor’s report, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard.
Internal control deficiency
25. I considered internal control relevant to my audit of the financial statements, reported performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance thereon. The matter reported below is limited to the significant internal control deficiency that resulted in the finding on compliance with legislation included in this report.
Financial and performance management 26. Compliance monitoring
A deficiency was identified in the internal control of monitoring compliance with the applicable laws and regulations pertaining to supply chain management. In this regard, the adopted standard operating procedures did not identify changes communicated by National Treasury regarding the limits on extensions to existing contracts.
Pretoria 31 July 2017
V O T E N O 4 7 A N N U A L R E P O R T
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Table of Contents
Appropriation Statement 88
Notes to the Appropriation Statement 95
Statement of Financial Performance 97
Statement of Financial Position 98
Statement of Changes in Net Assets 99
Cash Flow Statement 100
Notes to the Annual Financial Statements (including Accounting policies) 101
Annexures 116
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 8 8
2016
/17
2015
/16
Adj
uste
d A
ppro
pria
-tio
n
Shi
ftin
g of
Fu
nds
Vir
emen
t F
inal
Ap-
prop
riat
ion
Act
ual E
x-pe
nditu
re
Var
ianc
e
Exp
endi
ture
as
% o
f fina
l ap
prop
ria-
tion
Fin
al A
p-pr
opri
atio
n A
ctua
l Ex-
pend
iture
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00A
ppro
pria
tion
per
prog
ram
me
Vote
d fu
nds
1.A
dmin
istr
atio
n 1
7 67
1 -
6
08
18
279
17 9
09
370
98.0
% 1
4 01
2 1
3 34
4 2.
Pub
lic S
ecto
r In
nova
tion
14
423
-
(60
8) 1
3 81
5 13
498
31
7 97
.7%
14
991
14
711
TO
TAL
32 0
94
- -
32 0
94
31
407
687
97
.9%
29 0
03
28 0
55
Dep
artm
enta
l rec
eipt
s 3
2
Aid
ass
ista
nce
7 83
9
2 40
0
Act
ual a
mou
nts
per
Sta
tem
ent o
f Fin
anci
al P
erfo
rman
ce (T
otal
Rev
enue
) 39
936
31 4
05
Add
: A
id a
ssis
tanc
e3
134
1 94
1
Act
ual a
mou
nts
per
Sta
tem
ent o
f Fin
anci
al P
erfo
rman
ce E
xpen
ditu
re
34
541
29 9
96
App
ropr
iatio
n pe
r ec
onom
ic c
lass
ifica
tion
C
urre
nt p
aym
ents
32
025
(2 2
68)
- 2
9 75
7 29
127
63
0 97
.9%
28
222
27
300
C
ompe
nsat
ion
of e
mpl
oyee
s 1
6 79
2 (9
12)
- 1
5 88
0 15
593
28
7 98
.2%
14
450
14
169
S
alar
ies
and
wag
es 1
4 95
8 (
867)
13
14
104
13 8
27
277
98.0
% 1
2 78
6 1
2 50
9
Soc
ial c
ontr
ibut
ions
1 8
34
(45)
(13
) 1
776
1
766
10
99
.4%
1 6
64
1 6
60
G
oods
and
ser
vice
s 1
5 23
3 (1
356
)-
13
877
13 5
34
343
97.5
% 1
3 77
2 1
3 13
1
Adm
inis
trat
ive
fees
133
(2
3)-
110
10
5 5
95.5
% 9
9 9
6
Adv
ertis
ing
113
3
3 -
146
14
6 -
10
0.0%
1 0
57
1 0
53
M
inor
ass
ets
330
(
103)
- 2
27
222
5 97
.8%
143
14
0
Aud
it co
sts:
Ext
erna
l 2
137
(
689)
- 1
448
1
447
1
99.9
% 7
40
740
C
ater
ing:
Dep
artm
enta
l act
iviti
es 9
1 5
9 -
150
14
8 2
98.7
% 7
8 7
6
Com
mun
icat
ion
(G&
S)
323
1
1 -
334
32
7 7
97.9
% 3
31
327
C
ompu
ter
serv
ices
1 0
20
(78)
- 9
42
749
193
79.5
% 6
81
670
C
onsu
ltant
s: B
usin
ess
and
advi
-so
ry s
ervi
ces
360
2
38
- 5
98
597
1 99
.8%
143
14
2
C
ontr
acto
rs 1
255
(
259)
- 9
96
992
4 99
.6%
1 2
02
1 2
00
C
onsu
mab
le s
uppl
ies
428
(5
)-
423
34
4 79
81
.3%
319
30
1
GO
VE
RN
ME
NT
CO
MP
ON
EN
T: C
EN
TRE
FO
R P
UB
LIC
SE
RV
ICE
INN
OV
ATI
ON
VO
TE 4
7
AP
PR
OP
RIA
TIO
N S
TATE
ME
NT
for
the
year
end
ed 3
1 M
arch
201
7
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 8 9
2016
/17
2015
/16
Ad
just
ed
Ap
pro
pri
a-ti
on
Sh
ifti
ng
of
Fu
nd
s V
irem
ent
Fin
al A
p-
pro
pri
atio
n
Act
ual
Ex-
pen
dit
ure
V
aria
nce
Exp
end
itu
re
as %
of
fin
al
app
rop
ria-
tio
n
Fin
al A
p-
pro
pri
atio
n
Act
ual
Ex-
pen
dit
ure
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00
C
onsu
mab
le: S
tatio
nery
, prin
ting
and
offic
e su
pplie
s 2
46
108
-
354
34
9 5
98.6
% 2
57
243
O
pera
ting
leas
es 2
948
(
156)
- 2
792
2
791
1
100.
0% 2
769
2
277
Pro
pert
y pa
ymen
ts 1
095
(
662)
- 4
33
431
2 99
.5%
271
26
9
Tra
vel a
nd s
ubsi
sten
ce 2
685
9
7 -
2 7
82
2 7
55
27
99.0
% 2
593
2
516
Tra
inin
g an
d de
velo
pmen
t 2
71
(54)
- 2
17
212
5 97
.7%
88
85
O
pera
ting
paym
ents
652
5
1 -
703
69
8 5
99.3
% 9
77
973
V
enue
s an
d fa
cilit
ies
1 1
46
76
- 1
222
1
221
1
99.9
% 2
024
2
023
Tran
sfer
s an
d s
ub
sid
ies
- 1
- 1
1
-
10
0.0%
24
-
D
epar
tmen
tal a
genc
ies
and
ac-
coun
ts-
-
- -
- -
-
24
-
H
ouse
hold
s-
1-
11
-10
0.0%
--
P
aym
ents
fo
r ca
pit
al a
sset
s 6
9 2
267
- 2
336
2
279
57
97
.6%
757
75
5
Bui
ldin
gs a
nd o
ther
fixe
d st
ruct
ures
- 8
06
- 8
06
806
-
100.
0%-
-
Mac
hine
ry a
nd e
quip
men
t 6
9 1
265
- 1
334
1
277
57
95
.7%
508
50
6
S
oftw
are
and
othe
r in
tang
ible
as-
sets
- 1
96
- 1
96
196
-
100.
0% 2
49
249
T
OTA
L
32
094
-
- 3
2 09
4 31
407
68
7 97
.9%
29
003
28
055
Pro
gra
mm
e 1:
AD
MIN
IST
RA
TIO
N1.
Str
ateg
ic M
anag
emen
t 3
703
2
0 -
3 7
23
3 6
98
25
99.3
% 4
348
4
335
2.
Cor
pora
te R
esou
rce
Man
agem
ent
7 6
64
1 41
8 6
08
9 6
90
9 5
83
107
98.9
% 6
571
5
949
3.
Offi
ce o
f the
Chi
ef F
inan
cial
Offi
cer
6 3
04
(1 4
38)
- 4
866
4
628
23
8 95
.1%
3 0
93
3 0
60
T
OTA
L 1
7 67
1 -
6
08
18
279
17 9
09
370
98.0
% 1
4 01
2 1
3 34
4
C
urr
ent
pay
men
ts 1
7 60
2 (1
746
) 6
08
16
464
16 1
08
356
97.8
% 1
3 26
9 1
2 62
7
Co
mp
ensa
tio
n o
f em
plo
yees
8 0
51
(58
5) 6
08
8 0
74
7 8
27
247
96.9
% 6
252
6
165
Sal
arie
s an
d w
ages
7 0
67
(49
2) 6
01
7 1
76
6 9
35
241
96.6
% 5
504
5
420
Soc
ial c
ontr
ibut
ions
984
(9
3) 7
8
98
892
6 99
.3%
748
74
5
Go
od
s an
d s
ervi
ces
9 5
51
(1 1
61)
- 8
390
8
281
10
9 98
.7%
7 0
17
6 4
62
GO
VE
RN
ME
NT
CO
MP
ON
EN
T: C
EN
TRE
FO
R P
UB
LIC
SE
RV
ICE
INN
OV
ATI
ON
VO
TE 4
7
AP
PR
OP
RIA
TIO
N S
TATE
ME
NT
for
the
year
end
ed 3
1 M
arch
201
7
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 9 0
2016
/17
2015
/16
Ad
just
ed
Ap
pro
pri
a-ti
on
Sh
ifti
ng
of
Fu
nd
s V
irem
ent
Fin
al A
p-
pro
pri
atio
n
Act
ual
Ex-
pen
dit
ure
V
aria
nce
Exp
end
itu
re
as %
of
fin
al
app
rop
ria-
tio
n
Fin
al A
p-
pro
pri
atio
n
Act
ual
Ex-
pen
dit
ure
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00
Adm
inis
trat
ive
fees
34
8 -
42
40
2 95
.2%
25
23
A
dver
tisin
g-
-
- -
- -
-
481
47
8
Min
or a
sset
s 2
40
(31)
- 2
09
205
4 98
.1%
142
14
0
Aud
it co
sts:
Ext
erna
l 2
137
(
689)
- 1
448
1
447
1
99.9
% 7
40
740
C
ater
ing:
Dep
artm
enta
l act
iviti
es 6
6 (2
6)-
40
39
1 97
.5%
18
17
C
omm
unic
atio
n (G
&S
) 1
86
16
- 2
02
198
4 98
.0%
276
27
2
Com
pute
r se
rvic
es 7
98
(49)
- 7
49
745
4 99
.5%
593
58
4
C
onsu
ltant
s: B
usin
ess
and
advi
-so
ry s
ervi
ces
360
2
38
- 5
98
597
1 99
.8%
143
14
2
C
ontr
acto
rs 7
0 2
5 -
95
93
2 97
.9%
17
17
C
onsu
mab
le s
uppl
ies
178
1
03
- 2
81
209
72
74.4
% 8
7 7
5
C
onsu
mab
le: S
tatio
nery
, prin
ting
and
offic
e su
pplie
s 1
79
7 -
186
18
4 2
98.9
% 1
94
182
O
pera
ting
leas
es 2
948
(
156)
- 2
792
2
791
1
100.
0% 2
769
2
277
P
rope
rty
paym
ents
1 0
95
(66
2)-
433
43
1 2
99.5
% 8
1 8
0
Tr
avel
and
sub
sist
ence
811
1
84
- 9
95
987
8 99
.2%
833
82
4
Trai
ning
and
dev
elop
men
t 1
25
(51)
- 7
4 72
2
97.3
% 5
1 4
8
Ope
ratin
g pa
ymen
ts 1
99
(69)
- 1
30
127
3 97
.7%
402
39
8
Ven
ues
and
faci
litie
s 1
25
(9)
- 1
16
116
-
100.
0% 1
65
165
Tr
ansf
ers
and
su
bsi
die
s-
1 -
1
1
-
100.
0% 2
4 -
D
epar
tmen
tal a
genc
ies
and
ac-
coun
ts-
-
- -
- -
-
24
-
H
ouse
hold
s -
1
-
1
1 -
100.
0% -
-
Pay
men
ts f
or
cap
ital
ass
ets
69
1 74
5 -
1 8
14
1 8
00
14
99.2
% 7
19
717
B
uild
ings
and
oth
er fi
xed
stru
ctur
es-
806
-
806
80
6 -
10
0.0%
- -
M
achi
nery
and
equ
ipm
ent
69
911
-
980
96
6 14
98
.6%
470
46
8
S
oftw
are
and
othe
r in
tang
ible
as-
sets
- 2
8 -
28
28
-
100.
0% 2
49
249
TO
TAL
17
671
-
608
1
8 27
9 17
909
37
0 98
.0%
14
012
13
344
GO
VE
RN
ME
NT
CO
MP
ON
EN
T: C
EN
TRE
FO
R P
UB
LIC
SE
RV
ICE
INN
OV
ATI
ON
VO
TE 4
7
AP
PR
OP
RIA
TIO
N S
TATE
ME
NT
for
the
year
end
ed 3
1 M
arch
201
7
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 9 1
2016
/17
2015
/16
Ad
just
ed
Ap
pro
pri
a-ti
on
Sh
ifti
ng
of
Fu
nd
s V
irem
ent
Fin
al A
p-
pro
pri
atio
n
Act
ual
Ex-
pen
dit
ure
V
aria
nce
Exp
end
itu
re
as %
of
fin
al
app
rop
ria-
tio
n
Fin
al A
p-
pro
pri
atio
n
Act
ual
Ex-
pen
dit
ure
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00
Su
bp
rog
ram
me:
1.1
: S
TR
AT
EG
IC M
AN
AG
EM
EN
T
Eco
no
mic
cla
ssifi
cati
on
Cu
rren
t p
aym
ents
3 7
03
6 -
3 7
09
3 6
84
25
99.3
% 4
348
4
335
Com
pens
atio
n of
em
ploy
ees
2 6
32
-
- 2
632
2
616
16
99
.4%
2 7
43
2 7
43
G
oods
and
ser
vice
s 1
071
6
- 1
077
1
068
9
99.2
% 1
605
1
592
Pay
men
ts f
or
cap
ital
ass
ets
- 1
4 -
14
14
-
100.
0%-
-
Mac
hine
ry a
nd e
quip
men
t-
14
- 1
4 14
-
10
0.0%
- -
T
OTA
L 3
703
2
0 -
3 7
23
3 6
98
25
99.3
% 4
348
4
335
S
ub
pro
gra
mm
e: 1
.2:
CO
RP
OR
AT
E R
ES
OU
RC
E M
AN
AG
EM
EN
T
Eco
no
mic
cla
ssifi
cati
on
Cu
rren
t p
aym
ents
7 5
95
(20
9) 6
08
7 9
94
7 9
00
94
98.8
% 5
828
5
232
Com
pens
atio
n of
em
ploy
ees
2 1
97
42
608
2
847
2
841
6
99.8
% 1
710
1
635
Goo
ds a
nd s
ervi
ces
5 3
98
(25
1)-
5 1
47
5 0
59
88
98.3
% 4
118
3
597
Tran
sfer
s an
d s
ub
sid
ies
- 1
- 1
1
-
10
0.0%
24
-
D
epar
tmen
tal a
genc
ies
and
ac-
coun
ts-
-
- -
- -
-
24
-
H
ouse
hold
s-
1 -
1
1
-
100.
0%-
-
Pay
men
ts f
or
cap
ital
ass
ets
69
1 62
6 -
1 6
95
1 6
82
13
99.2
% 7
19
717
B
uild
ings
and
oth
er fi
xed
stru
ctur
es-
806
-
806
80
6 -
10
0.0%
- -
M
achi
nery
and
equ
ipm
ent
69
792
-
861
84
8 13
98
.5%
470
46
8
S
oftw
are
and
othe
r in
tang
ible
as-
sets
- 2
8 -
28
28
-
100.
0% 2
49
249
T
OTA
L 7
664
1
418
608
9
690
9
583
10
7 98
.9%
6 5
71
5 9
49
S
ub
pro
gra
mm
e: 1
.3:
OF
FIC
E O
F T
HE
CH
IEF
FIN
AN
CIA
L O
FF
ICE
R
Eco
no
mic
cla
ssifi
cati
on
Cu
rren
t p
aym
ents
6 3
04
(1 5
43)
- 4
761
4
524
23
7 95
.0%
3 0
93
3 0
60
C
ompe
nsat
ion
of e
mpl
oyee
s 3
222
(
627)
- 2
595
2
370
22
5 91
.3%
1 7
99
1 7
87
GO
VE
RN
ME
NT
CO
MP
ON
EN
T: C
EN
TRE
FO
R P
UB
LIC
SE
RV
ICE
INN
OV
ATI
ON
VO
TE 4
7
AP
PR
OP
RIA
TIO
N S
TATE
ME
NT
for
the
year
end
ed 3
1 M
arch
201
7
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 9 2
2016
/17
2015
/16
Ad
just
ed
Ap
pro
pri
a-ti
on
Sh
ifti
ng
of
Fu
nd
s V
irem
ent
Fin
al A
p-
pro
pri
atio
n
Act
ual
Ex-
pen
dit
ure
V
aria
nce
Exp
end
itu
re
as %
of
fin
al
app
rop
ria-
tio
n
Fin
al A
p-
pro
pri
atio
n
Act
ual
Ex-
pen
dit
ure
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00
Goo
ds a
nd s
ervi
ces
3 0
82
(91
6)-
2 1
66
2 1
54
12
99.4
% 1
294
1
273
Pay
men
ts f
or
cap
ital
ass
ets
- 1
05
- 1
05
104
1 99
.0%
- -
M
achi
nery
and
equ
ipm
ent
- 1
05
- 1
05
104
1 99
.0%
- -
T
OTA
L
6 3
04
(1 4
38)
- 4
866
4
628
23
8 95
.1%
3 0
93
3 0
60
Pro
gra
mm
e 2:
PU
BL
IC S
EC
TO
R IN
NO
VAT
ION
1.R
esea
rch
and
Dev
elop
men
t 3
030
(
317)
- 2
713
2
493
22
0 91
.9%
2 8
61
2 6
44
2.S
olut
ion
Sup
port
and
Incu
batio
n 3
928
1
21
(60
8) 3
441
3
420
21
99
.4%
3 8
42
3 8
09
3.E
nabl
ing
Env
ironm
ent
7 4
65
196
-
7 6
61
7 5
85
76
99.0
% 8
288
8
258
TOTA
L 1
4 42
3 -
(
608)
13
815
13 4
98
317
97.7
% 1
4 99
1 1
4 71
1
C
urr
ent
pay
men
ts 1
4 42
3 (
522)
(60
8) 1
3 29
3 13
019
27
4 97
.9%
14
953
14
673
C
om
pen
sati
on
of
emp
loye
es 8
741
(
327)
(60
8) 7
806
7
766
40
99
.5%
8 1
98
8 0
04
S
alar
ies
and
wag
es 7
891
(
375)
(58
8) 6
928
6
892
36
99
.5%
7 2
82
7 0
89
S
ocia
l con
trib
utio
ns 8
50
48
(20
) 8
78
874
4 99
.5%
916
91
5
Go
od
s an
d s
ervi
ces
5 6
82
(19
5)-
5 4
87
5 2
53
234
95.7
% 6
755
6
669
Adm
inis
trat
ive
fees
99
(31)
- 6
8 65
3
95.6
% 7
4 7
3
Adv
ertis
ing
113
3
3 -
146
14
6 -
10
0.0%
576
57
5
Min
or a
sset
s 9
0 (7
2)-
18
17
1 94
.4%
1
-
Cat
erin
g: D
epar
tmen
tal a
ctiv
ities
25
85
- 1
10
109
1 99
.1%
60
59
C
omm
unic
atio
n (G
&S
) 1
37
(5)
- 1
32
129
3 97
.7%
55
55
C
ompu
ter
serv
ices
222
(2
9)-
193
4
18
9 2.
1% 8
8 8
6
Con
trac
tors
1 1
85
(28
4)-
901
89
9 2
99.8
% 1
185
1
183
Con
sum
able
sup
plie
s 2
50
(10
8)-
142
13
5 7
95.1
% 2
32
226
C
onsu
mab
le: S
tatio
nery
, prin
ting
and
offic
e su
pplie
s 6
7 1
01
- 1
68
165
3 98
.2%
63
61
P
rope
rty
paym
ents
- -
-
- -
-
- 1
90
189
T
rave
l and
sub
sist
ence
1 8
74
(87)
- 1
787
1
768
19
98
.9%
1 7
60
1 6
92
T
rain
ing
and
deve
lopm
ent
146
(3
)-
143
14
0 3
97.9
% 3
7 3
7
Ope
ratin
g pa
ymen
ts 4
53
120
-
573
57
1 2
99.7
% 5
75
575
GO
VE
RN
ME
NT
CO
MP
ON
EN
T: C
EN
TRE
FO
R P
UB
LIC
SE
RV
ICE
INN
OV
ATI
ON
VO
TE 4
7
AP
PR
OP
RIA
TIO
N S
TATE
ME
NT
for
the
year
end
ed 3
1 M
arch
201
7
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 9 3
2016
/17
2015
/16
Ad
just
ed
Ap
pro
pri
a-ti
on
Sh
ifti
ng
of
Fu
nd
s V
irem
ent
Fin
al A
p-
pro
pri
atio
n
Act
ual
Ex-
pen
dit
ure
V
aria
nce
Exp
end
itu
re
as %
of
fin
al
app
rop
ria-
tio
n
Fin
al A
p-
pro
pri
atio
n
Act
ual
Ex-
pen
dit
ure
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
%R
’000
R’0
00
Ven
ues
and
faci
litie
s 1
021
8
5 -
1 1
06
1 1
05
1 99
.9%
1 8
59
1 8
58
P
aym
ents
fo
r ca
pit
al a
sset
s-
522
-
522
47
9 43
91
.8%
38
38
M
achi
nery
and
equ
ipm
ent
- 3
54
- 3
54
311
43
87.9
% 3
8 3
8
S
oftw
are
and
othe
r in
tang
ible
as-
sets
- 1
68
- 1
68
168
-
100.
0%-
-
TO
TAL
14
423
-
(60
8) 1
3 81
5 13
498
31
7 97
.7%
14
991
14
711
S
ub
pro
gra
mm
e: 2
.1:
RE
SE
AR
CH
AN
D D
EV
EL
OP
ME
NT
E
con
om
ic c
lass
ifica
tio
n
C
urr
ent
pay
men
ts 3
030
(
351)
- 2
679
2
459
22
0 91
.8%
2 8
61
2 6
44
C
ompe
nsat
ion
of e
mpl
oyee
s 2
526
(
327)
- 2
199
2
177
22
99
.0%
2 1
73
1 9
86
G
oods
and
ser
vice
s 5
04
(24)
- 4
80
282
198
58.8
% 6
88
658
P
aym
ents
fo
r ca
pit
al a
sset
s-
34
- 3
4 34
-
10
0.0%
- -
M
achi
nery
and
equ
ipm
ent
- 3
4 -
34
34
-
100.
0%-
-
TO
TAL
3 0
30
(31
7)-
2 7
13
2 4
93
220
91.9
% 2
861
2
644
S
ub
pro
gra
mm
e: 2
.2:
SO
LU
TIO
N S
UP
PO
RT
AN
D IN
CU
BA
TIO
N
Eco
no
mic
cla
ssifi
cati
on
Cu
rren
t p
aym
ents
3 9
28
(23
8) (
608)
3 0
82
3 0
62
20
99.4
% 3
830
3
797
Com
pens
atio
n of
em
ploy
ees
3 0
88
-
(60
8) 2
480
2
474
6
99.8
% 3
106
3
104
Goo
ds a
nd s
ervi
ces
840
(
238)
- 6
02
588
14
97.7
% 7
24
693
P
aym
ents
fo
r ca
pit
al a
sset
s-
359
-
359
35
8 1
99.7
% 1
2 1
2
Mac
hine
ry a
nd e
quip
men
t-
191
-
191
19
0 1
99.5
% 1
2 1
2
S
oftw
are
and
othe
r in
tang
ible
as-
sets
- 1
68
- 1
68
168
-
100.
0%-
-
T
OTA
L 3
928
1
21
(60
8) 3
441
3
420
21
99
.4%
3 8
42
3 8
09
GO
VE
RN
ME
NT
CO
MP
ON
EN
T: C
EN
TRE
FO
R P
UB
LIC
SE
RV
ICE
INN
OV
ATI
ON
VO
TE 4
7
AP
PR
OP
RIA
TIO
N S
TATE
ME
NT
for
the
year
end
ed 3
1 M
arch
201
7
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 9 4
2016
/17
2015
/16
Adj
uste
d Ap
prop
ria-
tion
Shi
fting
of
Fund
s V
irem
ent
Fin
al A
p-pr
opria
tion
Act
ual E
x-pe
nditu
re
Var
ianc
e
Expe
nditu
re
as %
of fi
nal
appr
opria
-tio
n
Fin
al A
p-pr
opria
tion
Act
ual E
x-pe
nditu
re
R’00
0R’
000
R’00
0R’
000
R’00
0R’
000
%R’
000
R’00
0
Su
bpro
gram
me:
2.3
: ENA
BLIN
G EN
VIRO
NMEN
T
Eco
nom
ic c
lass
ifica
tion
Cu
rrent
pay
men
ts 7
465
6
7 -
7 5
32
7 4
98
34
99.5
% 8
262
8
232
Com
pens
atio
n of
em
ploy
ees
3 1
27
- -
3 1
27
3 1
15
12
99.6
% 2
919
2
914
Goo
ds a
nd s
ervic
es 4
338
6
7 -
4 4
05
4 3
83
22
99.5
% 5
343
5
318
Paym
ents
for c
apita
l ass
ets
- 1
29
- 1
29
87
42
67.4
% 2
6 2
6
Mac
hine
ry a
nd e
quip
men
t-
129
-
129
87
42
67
.4%
26
26
T
OTAL
7
465
1
96
- 7
661
7
585
76
99
.0%
8 2
88
8 2
58
GO
VE
RN
ME
NT
CO
MP
ON
EN
T: C
EN
TRE
FO
R P
UB
LIC
SE
RV
ICE
INN
OV
ATI
ON
VO
TE 4
7
AP
PR
OP
RIA
TIO
N S
TATE
ME
NT
for
the
year
end
ed 3
1 M
arch
201
7
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 9 5
1
Detail of transfers and subsidies as per Appropriation Act (after Virement):
Detail of these transactions can be viewed in the note on Transfers and subsidies and Annexure 1 (A-D) to the Annual Financial Statements.
2
Detail of specifically and exclusively appropriated amounts voted (after Virement):
Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.
3
Detail on payments for financial assets
Detail of these transactions per programme can be viewed in the note to Payments for financial assets to the Annual Finan-cial Statements.
4
Explanations of material variances from Amounts Voted (after virement):
4.1 Per programme: Final Appropriation Actual Expenditure VarianceVariance as a %
of Final Appropria-tion
R’000 R’000 R’000 %
Administration 18 279 17 909 370 2%
During the 2016/17 financial year, the CPSI had a vacant post; Deputy Director: Financial Management and Administration on salary 11, which resulted in underspending of R241 000 in the year under review. The process to fill the post was at an advanced stage at the end of the 2016/17 financial year, to be filled in the 2017/18 financial year. An amount of R72 000 was unspent at year end, due to uniforms which were ordered for security and cleaning personnel but not delivered by 31 March 2017. These were only delivered and paid for in April 2017.
Per programme: Final Appropriation Actual Expenditure VarianceVariance as a %
of Final Appropria-tion
R’000 R’000 R’000 %
Public Sector Innovation 13 815 13 498 317 2%
The budgeted payment to The Innovation Hub could not be processed, because the process of identifying and developing a possible solution for the Department of Home Affairs’ posted challenge was not concluded. In addition, the banking de-tails of a supplier were not verified on the National Treasury’s Central Supplier Database by 31 March 2017, which resulted in the payment being made in April 2017. These mainly resulted in an underspending in Programme 2: Public Service Innovation.
4.2 Per economic classifi-cation:
Final Appropriation Actual Expenditure VarianceVariance as a %
of Final Appropria-tion
R’000 R’000 R’000 %
Current expenditure 29 757 29 127 630 2%Compensation of employ-ees
15 880 15 593 287 2%
Goods and services 13 877 13 534 343 2%
GOVERNMENT COMPONENT: CENTRE FOR PUBLIC SERVICE INNOVATIONVOTE 47
NOTES TO THE APPROPRIATION STATEMENTfor the year ended 31 March 2017
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 9 6
Transfers and subsidies 1 1 -
Households 1 1 -
Payments for capital assets
1 334 1 277 57 4%
Machinery and equipment 1 334 1 277 57 4%
The underspending in compensation of employees is mainly due to the vacant post in Programme 1: Administration. The post will be filled in the first quarter of the 2017/18 financial year.
The budgeted payment to The Innovation Hub could not be processed, because the process of identifying and developing a possible solution for the Department of Home Affairs’ posted challenge was not conclude and resulted in an underspend-ing in Goods and Services.
The delay of the verification of a supplier’s banking details on the Central Supplier Database from National Treasury, re-sulted in the payment being made in April 2017.
GOVERNMENT COMPONENT: CENTRE FOR PUBLIC SERVICE INNOVATIONVOTE 47
NOTES TO THE APPROPRIATION STATEMENTfor the year ended 31 March 2017
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 9 7
2016/17 2015/16
R’000 R’000
REVENUE
Annual appropriation 1 32 094 29 003
Departmental revenue 2 3 2
Aid assistance Annexure C 7 839 2 400
TOTAL REVENUE 39 936 31 405
EXPENDITURE
Current expenditure
Compensation of employees 4 15 593 14 169
Goods and services 5 13 534 13 131
Aid assistance Annexure C 3 134 1 941
Total current expenditure 32 261 29 241
Transfers and subsidies
Transfers and subsidies 6 1 -
Total transfers and subsidies 1 -
Expenditure for capital assets
Tangible assets 7 2 083 506
Intangible assets 7 196 249
Total expenditure for capital assets 2 279 755
TOTAL EXPENDITURE 34 541 29 996
SURPLUS/(DEFICIT) FOR THE YEAR 5 395 1 409
Reconciliation of Net Surplus for the year
Voted Funds 687 948
Annual appropriation 687 948
Departmental revenue and NRF Receipts 2 3 2
Aid assistance 3
ANNEXURE C 4 705 459
SURPLUS FOR THE YEAR 5 395 1 409
GOVERNMENT COMPONENT: CENTRE FOR PUBLIC SERVICE INNOVATIONVOTE 47
STATEMENT OF FINANCIAL PERFORMANCEfor the year ended 31 March 2017
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 9 8
2016/17 2015/16
Note R’000 R’000
ASSETS
Current Assets 5 398 1 447
Cash and cash equivalents 8 4 718 1 447
Prepayments and advances 9 670 -
Receivables 10 10 -
TOTAL ASSETS 5 398 1 447
LIABILITIES
Current Liabilities 5 398 1 447
Voted funds to be surrendered to the Revenue Fund 11 687 948
Departmental revenue and NRF Receipts to be surren-dered to the Revenue Fund
12 - -
Payables 13 6 40
Aid assistance unutilised 3 4 705 459
TOTAL LIABILITIES 5 398 1 447
NET ASSETS - -
TOTAL - -
GOVERNMENT COMPONENT: CENTRE FOR PUBLIC SERVICE INNOVATIONVOTE 47
STATEMENT OF FINANCIAL POSITIONfor the year ended 31 March 2017
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 9 9
NET ASSETS 2016/17 2015/16
Note R’000 R’000
Capitalisation Reserves
Opening balance - -
Closing balance - -
Recoverable revenue
Opening balance - -
Closing balance - -
Retained funds
Opening balance - -
Closing balance - -
Revaluation Reserves
Opening balance - -
Closing balance - -
TOTAL - -
GOVERNMENT COMPONENT: CENTRE FOR PUBLIC SERVICE INNOVATIONVOTE 47
STATEMENT OF CHANGES IN NET ASSETSfor the year ended 31 March 2017
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 100
2016/17 2015/16
Note R’000 R’000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts 39 936 31 405
Annual appropriated funds received 1 32 094 29 003
Departmental revenue received 2 3 2
Aid assistance received3
ANNEXURE C 7 839 2 400
Net (increase)/ decrease in working capital (714) 40
Surrendered to Revenue Fund (951) (2)
Surrendered to RDP Fund/Donor (459) -
Current payments (32 261) (29 241)
Transfers and subsidies paid (1) -
Net cash flow available from operating activities 14 5 550 2 202
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for capital assets 7 (2 279) (755)
Net cash flows from investing activities (2 279) (755)
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash flows from financing activities - -
Net increase in cash and cash equivalents 3 271 1 447
Cash and cash equivalents at beginning of period 1 447 -
Cash and cash equivalents at end of period 15 4 718 1 447
GOVERNMENT COMPONENT: CENTRE FOR PUBLIC SERVICE INNOVATIONVOTE 47
CASH FLOW STATEMENTfor the year ended 31 March 2017
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 101
Summary of significant accounting policies
The financial statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated. Management has concluded that the financial statements present fairly the depart-ment’s primary and secondary information. The historical cost convention has been used, except where otherwise indicated. Management has used assessments and esti-mates in preparing the annual financial statements. These are based on the best information available at the time of preparation.Where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the financial statements and to comply with the statutory requirements of the Public Finance Management Act (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the PFMA and the annual Division of Revenue Act.
1 Basis of preparation
The financial statements have been prepared in accordance with the Modified Cash Standard.
2 Going concern
The financial statements have been prepared on a going concern basis.
3 Presentation currency
Amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department.
4 Rounding
Unless otherwise stated financial figures have been rounded to the nearest one thousand Rand (R’000).
5 Comparative information
5.1 Prior period comparative information
Prior period comparative information has been presented in the current year’s financial statements. Where necessary figures included in the prior period financial statements have been reclassified to ensure that the format in which the infor-mation is presented is consistent with the format of the current year’s financial statements.
5.2 Current year comparison with budget
A comparison between the approved, final budget and actual amounts for each programme and economic classification is included in the appropriation statement.
6 Revenue
6.1 Appropriated funds
Appropriated funds comprises of departmental allocations as well as direct charges against the revenue fund (i.e. statutory appropriation).Appropriated funds are recognised in the statement of financial performance on the date the appropriation becomes effec-tive. Adjustments made in terms of the adjustments budget process are recognised in the statement of financial perfor-mance on the date the adjustments become effective.The net amount of any appropriated funds due to / from the relevant revenue fund at the reporting date is recognised as a payable / receivable in the statement of financial position.
6.2 Departmental revenue
Departmental revenue is recognised in the statement of financial performance when received and is subsequently paid into the relevant revenue fund, unless stated otherwise.Any amount owing to the relevant revenue fund at the reporting date is recognised as a payable in the statement of financial position.
7 Expenditure
7.1 Compensation of employees
GOVERNMENT COMPONENT: CENTRE FOR PUBLIC SERVICE INNOVATIONVOTE 47
ACCOUNTING POLICIESfor the year ended 31 March 2017
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 102
7.1.1 Salaries and wages
Salaries and wages are recognised in the statement of financial performance on the date of payment.
7.1.2 Social contributions
Social contributions made by the department in respect of current employees are recognised in the statement of financial performance on the date of payment. Social contributions made by the department in respect of ex-employees are classified as transfers to households in the statement of financial performance on the date of payment.
7.2 Other expenditure
Other expenditure (such as goods and services, transfers and subsidies and payments for capital assets) is recognised in the statement of financial performance on the date of payment. The expense is classified as a capital expense if the total consideration paid is more than the capitalisation threshold.
7.3 Accruals and payables not recognised
Accruals and payables not recognised are recorded in the notes to the financial statements when the goods are received or, in the case of services, when they are rendered to the department or in the case of transfers and subsidies when they are due and payable.Accruals and payables not recognised are measured at cost.
7.4 Leases
7.4.1 Operating leases
Operating lease payments made during the reporting period are recognised as current expenditure in the statement of financial performance on the date of payment.The operating lease commitments are recorded in the notes to the financial statements.
7.4.2 Finance leases
Finance lease payments made during the reporting period are recognised as capital expenditure in the statement of finan-cial performance on the date of payment.The finance lease commitments are recorded in the notes to the financial statements and are not apportioned between the capital and interest portions. Finance lease assets acquired at the end of the lease term are recorded and measured at the lower of:· cost, being the fair value of the asset; or· the sum of the minimum lease payments made, including any payments made to acquire ownership at the end of the lease term, excluding interest.
8 Aid Assistance
8.1 Aid assistance received
Aid assistance received in cash is recognised in the statement of financial performance when received. In-kind aid assis-tance is recorded in the notes to the financial statements on the date of receipt and is measured at fair value.Aid assistance not spent for the intended purpose and any unutilised funds from aid assistance that are required to be refunded to the donor are recognised as a payable in the statement of financial position.
8.2 Aid assistance paid
Aid assistance paid is recognised in the statement of financial performance on the date of payment. Aid assistance pay-ments made prior to the receipt of funds are recognised as a receivable in the statement of financial position.
9 Cash and cash equivalents
Cash and cash equivalents are stated at cost in the statement of financial position. Bank overdrafts are shown separately on the face of the statement of financial position as a current liability.For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts.
GOVERNMENT COMPONENT: CENTRE FOR PUBLIC SERVICE INNOVATIONVOTE 47
ACCOUNTING POLICIESfor the year ended 31 March 2017
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 103
10 Prepayments and advances
Prepayments and advances are recognised in the statement of financial position when the department receives or dis-burses the cash. Prepayments and advances are initially and subsequently measured at cost.Prepayments are expended when recovery from officials were done.
11 Payables
Loans and payables are recognised in the statement of financial position at cost.
12 Capital Assets
12.1 Immovable capital assets
Immovable capital assets are initially recorded in the notes to the financial statements at cost. Immovable capital assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition. Where the cost of immovable capital assets cannot be determined reliably, the immovable capital assets are measured at fair value for recording in the asset register. Immovable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.
Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the immovable asset is recorded by another department in which case the completed project costs are transferred to that department.
12.1 Movable capital assets
Movable capital assets are initially recorded in the notes to the financial statements at cost. Movable capital assets ac-quired through a non-exchange transaction is measured at fair value as at the date of acquisition. Where the cost of movable capital assets cannot be determined reliably, the movable capital assets are measured at fair value and where fair value cannot be determined; the movable assets are measured at R1. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.
Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.
Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the movable asset is recorded by another department/entity in which case the completed project costs are transferred to that department.
12.2 Intangible assets
Intangible assets are initially recorded in the notes to the financial statements at cost. Intangible assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition. Internally generated intangible assets are recorded in the notes to the financial statements when the department com-mences the development phase of the project. Where the cost of intangible assets cannot be determined reliably, the intangible capital assets are measured at fair value and where fair value cannot be determined; the intangible assets are measured at R1. All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.
Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment.
Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the intangible asset is recorded by another department/entity in which case the completed project costs are transferred to that department.
13 Provisions and Contingents
13.1 Commitments
Commitments (other than for transfers and subsidies) are recorded at cost in the notes to the financial statements when there is a contractual arrangement or an approval by management in a manner that raises a valid expectation that the department will discharge its responsibilities thereby incurring future expenditure that will result in the outflow of cash.
GOVERNMENT COMPONENT: CENTRE FOR PUBLIC SERVICE INNOVATIONVOTE 47
ACCOUNTING POLICIESfor the year ended 31 March 2017
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 104
14 Changes in accounting policies, accounting estimates and errors
Changes in accounting policies that are effected by management have been applied retrospectively in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the change in policy. In such instances the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.Changes in accounting estimates are applied prospectively in accordance with MCS requirements.
Correction of errors is applied retrospectively in the period in which the error has occurred in accordance with MCS require-ments, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the error. In such cases the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.
15 Departures from the MCS requirements
Management has concluded that the financial statements present fairly the department’s primary and secondary informa-tion; that the department complied with the standard and there has been no departure from a particular requirement to achieve fair presentation.
16 Related party transactions
A related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party. Related party transactions within the Minister/MEC’s portfolio are recorded in the notes to the financial statements when the transaction is not at arm’s length.
Key management personnel are those persons having the authority and responsibility for planning, directing and control-ling the activities of the department. The number of individuals and their full compensation is recorded in the notes to the financial statements.
17 Employee benefits
The value of each major class of employee benefit obligation (accruals, payables not recognised and provisions) is dis-closed in the Employee benefits note.
GOVERNMENT COMPONENT: CENTRE FOR PUBLIC SERVICE INNOVATIONVOTE 47
ACCOUNTING POLICIESfor the year ended 31 March 2017
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 105
1
Annual Appropriation 2016/17 2015/16
Final Ap-propria-
tion
Actual Funds
Received
Funds not requested/
not re-ceived
Final Ap-propriation
Appro-priation
Received
Programmes R’000 R’000 R’000 R’000 R’000 1. Administration 18 279 18 279 - 14 012 14 012 2. Public Sector Innovation 13 815 13 815 - 14 991 14 991
Total 32 094 32 094 - 29 003 29 003
2016/17 2015/16 Note R’000 R’000
2 Departmental RevenueSales of goods and services other than capital assets 2.1 3 2 Total revenue collected 3 2 Departmental revenue collected 3 2
2.1Sales of goods and services other than capital assets
2
Sales of goods and services produced by the department
3 2
Other sales 3 2 Total 3 2
3 Aid AssistanceOpening Balance 459 - Transferred from statement of financial performance 4 705 459 Paid during the year (459) - Closing Balance 4 705 459
3.1 Analysis of balance by source3
Annexure CAid assistance from RDP 4 705 459 Closing Balance 4 705 459
3.2 Analysis of balance3
Annexure CAid assistance unutilised 4 705 459 Closing balance 4 705 459
4 Compensation of Employees4.1 Salaries and wages
Basic salary 10 236 9 217 Performance award 199 170 Service Based - 9 Compensative/circumstantial 119 36 Other non-pensionable allowances 3 273 3 077 Total 13 827 12 509
GOVERNMENT COMPONENT: CENTRE FOR PUBLIC SERVICE INNOVATIONVOTE 47
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2017
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 106
2016/17 2015/16 Note R’000 R’000
4.2 Social ContributionsEmployer contributionsPension 1 314 1 210 Medical 450 448 Bargaining council 2 2 Total 1 766 1 660
Total compensation of employees 15 593 14 169
Average number of employees 31 30
5 Goods and servicesAdministrative fees 105 96 Advertising 146 1 053 Minor assets 5.1 222 140 Catering 148 76 Communication 327 327 Computer services 5.2 749 670 Consultants: Business and advisory services 597 142 Contractors 992 1 200 Audit cost – external 5.3 1 447 740 Consumables 5.4 693 544 Operating leases 2 791 2 277 Property payments 5.5 431 269 Travel and subsistence 5.6 2 755 2 516 Venues and facilities 1 221 2 023 Training and development 212 85 Other operating expenditure 5.7 698 973 Total 13 534 13 131
5.1 Minor assets 5 Tangible assets 222 67 Machinery and equipment 222 67
Intangible assets - 73 Software - 73 Total 222 140
5.2 Computer services 5SITA computer services 605 482External computer service providers 144 188Total 749 670
5.3 Audit cost – external 5 Regularity audits 1 447 740Total 1 447 740
GOVERNMENT COMPONENT: CENTRE FOR PUBLIC SERVICE INNOVATIONVOTE 47
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2017
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 107
2016/17 2015/16 Note R’000 R’000
5.4 Consumables 5 Consumable supplies 344 300 Uniform and clothing 76 - Household supplies 75 43 IT consumables 18 27 Other consumables 175 230 Stationery, printing and office sup-plies
349 244
Total693 544
5.5 Property payments 5 Municipal services 397 73 Property management fees 12 1 Other 22 195
Total 431 269
5.6 Travel and subsistence 5 Local 1 634 1 544Foreign 1 121 972Total 2 755 2 516
5.7 Other operating expenditure 5Professional bodies, membership and subscription fees - 6 Resettlement costs 21 31 Other 677 936 Total 698 973
6 Transfers and SubsidiesHouseholds Annexure A 1 -
Total 1 -
7 Expenditure for capital assetsTangible assets 2 083 506
Buildings and other fixed structures 24 806 -
Machinery and equipment 22 1 277 506
Intangible assets 23 196 249
Software 196 249
Total 2 279 755
7.1 Analysis of funds utilised to acquire capital assets - 2016/17 Voted Funds
Aid assis-tance
TOTAL
R’000 R’000 R’000 Tangible assets 2 083 - 2 083 Buildings and other fixed structures 806 - 806 Machinery and equipment 1 277 - 1 277
Intangible assets 196 - 196 Software 196 - 196
GOVERNMENT COMPONENT: CENTRE FOR PUBLIC SERVICE INNOVATIONVOTE 47
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2017
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 108
Voted Funds
Aid assis-tance
TOTAL
R’000 R’000 R’000 Total 2 279 - 2 279
7.2 Analysis of funds utilised to acquire capital assets - 2015/16
Tangible assets 506 - 506
Machinery and equipment 506 - 506
Intangible assets 249 - 249
Software 249 - 249
Total 755 - 755
2016/17 2015/16 Note R’000 R’000
7.3 Finance lease expenditure included in Expenditure for capital assets
Machinery and equipment 40 45
Total 40 45
8 Cash and Cash Equivalents
Consolidated Paymaster General Account 4 713 1 442 Cash on hand 5 5 Total 4 718 1 447
9 Prepayments and AdvancesAdvances paid (Not expensed) 9.1 670 -
Total 670 -
9.1 Advances paid (Not expensed)Other institutions Annexure D 670 - Total 670 -
CurrentNon-cur-rent
Total Current
Note R’000 R’000 R’000 R’000 10 Receivables
Recoverable expenditure 10.1 8 8 - Staff debt 10.2 2 2 - Total 10 10 -
2016/17 2015/16 Note R’000 R’000
10.1 Recoverable expenditure (disallowance accounts) 10Damages to hired vehicle 8 -
Total 8 -
10.2 Staff debt 10Debt Account 2 -
Total 2 -
GOVERNMENT COMPONENT: CENTRE FOR PUBLIC SERVICE INNOVATIONVOTE 47
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2017
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 109
2016/17 2015/16 Note R’000 R’000
11 Voted Funds to be Surrendered to the Revenue FundOpening balance 948 - Transfer from statement of financial performance (as restated) 687 948 Paid during the year (948) - Closing balance 687 948
12 Departmental revenue and NRF Receipts to be surrendered to the Revenue FundTransfer from Statement of Financial Performance (as restated) 3 2 Paid during the year (3) (2)Closing balance - -
13 Payables - current
Clearing accounts 13.1 6 40
Total 6 40
13.1 Clearing accounts 13Salaries: Income Tax 6 39
Pension Funds - 1
Total 6 40
14 Net cash flow available from operating activities
Net surplus as per Statement of Financial Performance 5 395 1 409 Add back non cash/cash movements not deemed operating activities 155 793 (Increase) in receivables (10) - (Increase)in prepayments and advances (670) - (Increase) in payables – current (34) 40 Expenditure on capital assets 2 279 755 Surrenders to Revenue Fund (951) (2)Surrenders to RDP Fund/Donor (459) - Net cash flow generated by operating activities 5 550 2 202
15 Reconciliation of cash and cash equivalents for cash flow purposes
Consolidated Paymaster General account 4 713 1 442
Cash on hand 5 5 Total 4 718 1 447
16 CommitmentsCurrent expenditure 1 868 1 649 Approved and contracted 1 868 1 649
Capital Expenditure - 44 Approved and contracted - 44
Total Commitments 1 868 1 693
Commitment for projected traveling expenditure are linked to the Travel Management Services’ contract which ends on 31 July 2017. Commitment for longer than a year:Projected Connectivity cost for DSL lines, website and domain services - contract ending 2020/03/25.
GOVERNMENT COMPONENT: CENTRE FOR PUBLIC SERVICE INNOVATIONVOTE 47
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2017
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 110
17 Accruals and payables not recognised17.1 Accruals
Listed by economic classification 30 days 30+ days Total TotalGoods and services 203 - 203 203 Total 203 - 203 203
2016/17 2015/16 Note R’000 R’000
Listed by programme levelProgramme 1: Administration 76 179 Programme 2: Public Sector Innovation 127 24 Total 203 203
18 Employee benefitsLeave entitlement 642 659
Service bonus (Thirteenth cheque) 492 445
Performance awards 234 213 Capped leave commitments 62 58 Total 1 430 1 375
19 Lease commitments19.1 Operating leases expenditure
2016/17Special-ised mili-
tary assetsLand
Buildings and other
fixed struc-tures
Machinery and equip-
mentTotal
R’000 R’000 R’000 R’000 R’000 Not later than 1 year - - 3 683 - 3 683 Later than 1 year and not later than 5 years
- - 3 666 - 3 666
Total lease commitments - - 7 349 - 7 349
2015/16Special-ised mili-
tary assetsLand
Buildings and other
fixed struc-tures
Machinery and equip-
mentTotal
R’000 R’000 R’000 R’000 R’000 Not later than 1 year - - 2 685 - 2 685 Later than 1 year and not later than 5 years
- - 2 927 - 2 927
Total lease commitments - - 5 612 - 5 612
Department of Public Works- Lease agreement for Office accommodation Current agreements ends on 31 March 2019
19.2 Finance leases expenditure **
2016/17Special-ised mili-
tary assetsLand
Buildings and other
fixed struc-tures
Machinery and equip-
mentTotal
R’000 R’000 R’000 R’000 R’000 Not later than 1 year - - - 87 87
GOVERNMENT COMPONENT: CENTRE FOR PUBLIC SERVICE INNOVATIONVOTE 47
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2017
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 111
Later than 1 year and not later than 5 years
- - - 121 121
Total lease commitments - - - 208 208
2015/16Special-ised mili-
tary assetsLand
Buildings and other
fixed struc-tures
Machinery and equip-
mentTotal
R’000 R’000 R’000 R’000 R’000 Not later than 1 year - - - 15 15 Later than 1 year and not later than 5 years
- - - 10 10
Total lease commitments - - - 25 25
One cell phone and 3G contract ending December 2017. Hiring of one water cooler contract ending July 2017. Two contracts for the hiring of two photocopier machines, ending October and December 2019 respectively
20 Irregular expenditure 2016/17 2015/16Note R’000 R’000
20.1 Reconciliation of irregular expenditureAdd: Irregular expenditure - relating to current year 169 - Irregular expenditure awaiting condonation 169 -
Analysis of awaiting condonation per age classificationCurrent year 169 - Total 169 -
20.2 Details of irregular expenditure – added current year (relating to current and prior years)
R’000
IncidentDisciplinary steps taken/criminal proceedings
Failure to comply with procurement procedure
One case was declared as irregular ex-penditure due to non-compliance to the Preferential Procurement Regulations 2011 par 7.1 to advertise the invitation for quotations with a specific condition that only locally produced goods, meet-ing the stipulated minimum threshold of local production and content, will be con-sidered
63
Two cases were declared as irregular ex-penditure due to non-compliance to Na-tional SCM instruction note 3 of 2016/17 to obtain prior written approval from the National Treasury for contract variation exceeding 15% of the original contract value
106
Total 169
GOVERNMENT COMPONENT: CENTRE FOR PUBLIC SERVICE INNOVATIONVOTE 47
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2017
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 112
21 Related party transactionsThe CPSI has a related party relationship with all the public sector entities falling within the portfolio of the Minister for Public Service and Administration, which includes the Department of Public Service and Administration, Public Service Commission, National School of Government and the Government Employee Medical. During the period under review all transactions entered into with these entities were at arm’s length.
2016/17 2015/16 Note R’000 R’000
22 Key management personnelNo. of Indi-
vidualsLevel 15 1 1 596 1 821 Level 14 (including CFO at a lower level) 4 4 532 4 273 Total 6 128 6 094
23 Movable Tangible Capital AssetsMovement in Movable Tangible Capital Assets per asset register for the year ended 31 March 2017
Opening balance
Value ad-justments
Additions Disposals Closing balance
R’000 R’000 R’000 R’000 R’000 Machinery and Equipment 5 799 - 1 272 - 7 071 Computer equipment 1 424 - 279 - 1 703 Furniture and office equipment 2 602 - 744 - 3 346 Other machinery and equipment 1 773 - 249 - 2 022 Total Movable Tangible Capital Assets 5 799 - 1 272 - 7 071
Movable Tangible Capital Assets under investigation Number ValueIncluded in the above total of the movable tangible capital assets per the asset register are assets that are under investigation:
R’000
Machinery and equipment 3 17
A carry case (valued at R6 000) and two screens has been reported missing after it was used on an out-side exhibition site. The missing case was reported at the South African Police Services. Investigation with Courier Services company and exhibition site was concluded. All items were placed on suspense on the Asset Register pending the final decision by the Disposal Committee.
23.1 Additions
Additions to Movable Tangible Capital assets per asset register for the year ended 31 March 2017
Cash Non-cash
(Capital work-in-progress current
costs and finance
lease pay-ments)
Received current, not paid (Paid
current year, re-
ceived prior year
Total
R’000 R’000 R’000 R’000 R’000 Machinery and Equipment 1 277 - (40) 35 1 272 Computer equipment 244 - - 35 279 Furniture and office equipment 744 - - - 744
GOVERNMENT COMPONENT: CENTRE FOR PUBLIC SERVICE INNOVATIONVOTE 47
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2017
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 113
Other machinery and equipment 289 - (40) - 249 Total Additions to Movable Tan-gible Capital Assets
1 277 - (40) 35 1 272
23.2 Movement for 2015/16Movement in Movable Tangible Capital Assets per asset register for the year ended 31 March 2016
Opening balance
Prior pe-riod error
Additions Disposals Closing balance
R'000 R'000 R'000 R'000 R’000 Machinery and Equipment - (45) 5 844 - 5 799 Computer equipment - 58 1 366 - 1 424
Furniture and office equipment - - 2 602 - 2 602 Other machinery and equipment - (103) 1 876 - 1 773
Total Movable Tangible Capital Assets
- (45) 5 844 - 5 799
23.2.1 Prior period error 2015/16 Note R’000
Nature of prior period error Relating to 2016/17 (affecting the opening balance) (45)Finance Leases incorrectly included in opening balance (45)
Relating to 2015/16 Correction of Category Classification - Computer Equipment 58 Correction of Category Classification - Other Machinery and Equipment (58)Total (45)
23.3 Minor assets Movement in Minor Assets per the asset register for the year ended 31 March 2017
Specialised military assets
Intangible assets
Heritage assets
Machinery and equip-
ment
Biological assets
Total
R’000 R’000 R’000 R’000 R’000 R’000 Opening balance - - - 906 - 906 Additions - - - 189 - 189 Total Minor As-sets
- - - 1 095 - 1 095
Specialised military assets
Intangible assets
Heritage assets
Machinery and equip-
ment
Biological assets
Total
Number of minor assets at cost
- - - 591 - 591
Total number of Minor Assets
- - - 591 - 591
GOVERNMENT COMPONENT: CENTRE FOR PUBLIC SERVICE INNOVATIONVOTE 47
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2017
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 114
Movement in Minor Assets per the asset register for the year ended 31 March 2016
Specialised military assets
Intangible assets
Heritage assets
Machinery and equip-
ment
Biological assets
Total
R’000 R’000 R’000 R’000 R’000 R’000 Opening balance - - - - - - Additions - - - 906 - 906 Total Minor As-sets
- - - 906 - 906
Specialised military assets
Intangible assets
Heritage assets
Machinery and equip-
ment
Biological assets
Total
Number of minor assets at cost
- - - 493 - 493
Total number of Minor Assets
- - - 493 - 493
24 Intangible Capital AssetsMovement in Intangible Capital Assets Per asset register for the year ended 31 March 2017
Opening balance
Value ad-justments
Additions DisposalsClosing balance
R’000 R’000 R’000 R’000 R’000 Software 308 - 196 - 504 Total intangible capital assets 308 - 196 - 504
24.1Additions to Intangible Capital Assets per asset register for the year ended 31 March 2017
Cash Non-cash
(Develop-ment work-in-progress
current costs )
Received current, not paid (Paid
current year, re-
ceived prior year
Total
R’000 R’000 R’000 R’000 R’000 Software 196 - - - 196 Total additions to Intangible Capi-tal Assets
196 - - - 196
24.2 Movement for 2015/16Movement in Intangible Capital Assets per asset register for the year ended 31 March 2016
Opening balance
Prior pe-riod error
Additions Disposals Closing balance
R’000 R’000 R’000 R’000 R’000 Software - - 308 - 308 Total Intangible Capital Assets - - 308 - 308
GOVERNMENT COMPONENT: CENTRE FOR PUBLIC SERVICE INNOVATIONVOTE 47
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2017
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 115
25 Immovable Tangible Capital AssetsMovement in Immovable Tangible Capital Assets per asset register for the year Ended 31 March 2017
Opening balance
Value ad-justments
Additions DisposalsClosing balance
R’000 R’000 R’000 R’000 R’000 Buildings and Other Fixed StructuresNon-residential buildings - - 806 - 806 Total Immovable Tangible Capital Assets - - 806 - 806
25.1 AdditionsAdditions to Immovable Tangible Capital Assets per asset register for the year ended 31 March 2017
Cash Non-cash
(Capital work-in-progress current
costs and finance
lease pay-ments)
Received current, not paid (Paid
current year, re-
ceived prior year
Total
R’000 R’000 R’000 R’000 R’000 Buildings and Other Fixed Struc-turesNon-residential buildings 806 - - - 806 Total Additions to Immovable Tan-gible Capital Assets
806 - - - 806
GOVERNMENT COMPONENT: CENTRE FOR PUBLIC SERVICE INNOVATIONVOTE 47
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2017
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 116
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C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 118
NOTES
V O T E N O 4 7 A N N U A L R E P O R T
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 119
C E N T R E F O R P U B L I C S E R V I C E I N N O V A T I O N
2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 120
CONTACT DETAILSCorporate 66 Off ice Park
Corner Von Wil l igh and Lenchen Street Centur ion Pretor ia South Afr ica
TELEPHONE NUMBER/S:+27 12 683 2800 / +27 860000 CPSI (2774)
FAX NUMBER:+27 12 643 0943
EMAIL ADDRESS:info@cpsi .co.za
WEBSITE ADDRESS:www.cpsi .co.za
RP: 132/2017ISBN: 978-0-621-45459-8