Briefing to the Portfolio Committee on Public Service and Administration

Palama Annual Report 2008/09

Acting Director-General and Branch Heads

Wednesday, 28 October 2009Cape Town

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Purpose

To present the Palama Annual Report for the 2008/2009 financial year

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Focus Areas

Mandate and strategic objectives Programme performance Human resources Financial performance Corporate governance Audit findings Conclusion

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2008/2009 Annual Report of Palama Mandate The legislative mandate is to provide or oversee the provision of

training on a meaningful scale in all three spheres of government guided by: The Constitution of the Republic; Public Service Act of 1999, as amended, Section 4; Policy pronouncements, inclusive of the:

Medium Term Strategic Framework; President’s annual State of the Nation Address; Minister’s annual Budget Vote speech; and The government Programme of Action.

Provide training, leadership, and management development in the public service in order to improve performance and service delivery, and

Substantially increase the availability of training interventions/opportunities for the public service.

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Strategic objectives

Delivery of the Academy services; Relationships with external stakeholders; Lateral contribution to the organisation; Corporate governance; and Transformation of SAMDI to the Academy

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2008/2009 Annual Report of Palama Programme performance

Highlights: Palama was launched as successor to SAMDI on 1st

August 2008

A 29% increase in training days from 104 292 in 2007/08 to 134 375 in 2008/09, with a 45% increase in the number of officials trained.

An increased number of public servants trained in accredited Emerging, Advanced and Executive management development programmes (majority being women)

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2008/2009 Annual Report of Palama Programme performance

Highlights continued: Launched Palama’s contact centre – 012 441 6777 More access to relevant and responsive training programmes:

Gender Mainstreaming; HIV and AIDS; Monitoring and Evaluation; Ethics and Anti-corruption; and Induction, amongst others.

Secured R70m from CIDA for regional capacity development programme over five years

Piloted and delivered the Executive Development Programme for senior managers

Facilitated training of trainers for 71 participants from 31 African countries (AMDIN) through a partnership with JICA.

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2008/2009 Annual Report of Palama Programme performance (programme/course menu)

Leadership Capacity

Managing Public Finances

Batho Pele and Service Delivery

Human Resource

ManagementGood Governance

Executive Development Programme

Advanced Management Development Programme

Emerging Management Development Programme

Foundation Management Programme

Mentorship Programme

Accelerated Development Programme

Khaedu

Supply Chain Management

Asset Management Bid Committee

Training Contract

Management Revenue

management Expenditure

Management Risk Management PFMA for Non-

financial Managers Bank Reconciliation Internal Audit Standard Chart of

Accounts (SCOA)

Excellent Customer Service

Batho Pele Improvement: Service Delivery for Operational Managers

Service Delivery Implementation Plans

Massified Induction Programme

Wamkelekele Induction

Job Evaluation (suite)

Hearing Procedures

Industrial Relations Skills Development Programme

Introduction to HRM

Monitoring and Evaluation

Report Writing Diversity Management Disability Management Implementation of

Integrated Disability Strategy

Gender Awareness and mainstreaming

HIV/AIDS Development programme for Government planners

Ethics Management Minimum Anti-

Corruption

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2008/2009 Annual Report of Palama Programme performance (Person Training Days 2007/08 and 2008/09)

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2008/2009 Annual Report of Palama Programme performance (Breakdown of Person Training Days 2008/09)

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2008/2009 Annual Report of Palama Human Resources Transformation of SAMDI into PALAMA resulted in a new

organogram: 237 Posts created, of which 130 were filled within the financial year. 42 of the total employed were at SMS level. 36 officials left the department (for breakdown check p142).

Performance management: All members of SMS signed performance agreements by 30/09/2008.

Personnel costs: Personnel expenditure is R44,743m, representing 19% of total

expenditure, Average personnel cost per employee is R342,000

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2008/2009 Annual Report of Palama Human Resources – Employment Equity profile

Male

African Coloured Indian White Total

42 3 5 9 59

Female 36 8 6 21 71

Total 78 11 11 30 130

People with Disabilities 1 1 2

• Total male to female ratio as a percentage is 45% to 55%.

• Employees with disabilities are 1.5% of the total staff complement.

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2008/2009 Annual Report of Palama Financial performance – Expenditure Patterns

Full appropriation from Parliament of R105.5m was spent, with a variance of R162,000 (0.15%)

Compensation of Employees expenditure decreased by 11.3% from R13.3m to R11.8m due to vacancies that were not filled,

Goods and services expenditure decreased by 15.9% from R52.9m to R44.5m mainly due to the reduction in the operating lease payments,

Expenditure on capital assets reduced by 14.5% from R7.6m to R6.5m as the costs of furnishing the new premises were incurred in the previous financial year,

Transfer payment from the Vote to the Trading Training Account (TTA) was reduced by R8.7m.

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2008/2009 Annual Report of Palama Financial performance - Expenditure Patterns

Total revenue (including augmentation from the Vote) increased by R9.2m from R115.70m in 2007/08 to R124.9m in 2008/09,

Income from course fees rose by R28.9m from R53.4m to R82.3m due to appreciable increase in training activity.

Total expenditure in the TTA increased by R51.6m from R85.5m in 2007/08 to R137.1m in 2008/09 mainly due to increased training activity and expenditure on outsourced training.

Surplus for the year decreased by R35.9m from R37.7m in 2007/08 to R1.8m in 2008/09, mostly due to an increase in administration cost and the R28 million allocation for induction training.

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2008/2009 Annual Report of Palama Financial performance - Utilisation of donor funds

Palama received R34.4m for donor funded projects, of which R17.8m was spent,

The remaining R16.6m will be utilised in 2009/10 as per project implementation plans agreed with donors.

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2008/2009 Annual Report of Palama Financial performance - Utilisation of donor fundsName of Donor Purpose Opening

BalanceRevenue Expenditure Closing

Balance

R’000 R’000 R’000 R’000

1. Received in Cash

1.1 Local Aid Assistance

African Renaissance Fund Training - 23,697 (8,873) 14,824

1.2 Foreign Aid Assistance

Aid assistance unutilised 28 10,742 (8,718) 2,2052

CIDA – Gender Mainstreaming Training (192) 4,400 (3,766) 442

CIDA – Public Sector Training Training - 4,858 (3,586) 1,272

Government of Sweden Training 192 - - 192

Government of Germany Training - 1,484 (1,366) 118

Common Wealth Training 28 - - 28

Aid assistance receivable (250) - (68) (318)

Government of the Netherlands Training (1) - (68) (69)

Government of Flanders Training (249) - - (249)

Total foreign aid assistance in cash (222) 10,742 (8,786) 1,734

 

Total aid assistance received in cash (222) 34,439 (17,659) 16,558

2. Received in Kind

Total aid assistance received in kind 2,048 2,182 (4,230) -

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2008/2009 Annual Report of Palama Corporate Governance Environment

Strategic Risk Register revised and aligned to the strategic objectives of the Academy

Risk Management Committee reviewed the Risk Management Strategy, Risk Management Policy and Risk Committee Charter

Audit committee approved a three-year rolling internal audit strategic plan

Fraud prevention plan and fraud policy and response plan developed

Five audit committee meetings were held during the period under review

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2008/2009 Annual Report of Palama Audit Findings Unqualified audit report for the 6th successive year

Attention only drawn on one matter: Non-compliance with legislation – Strategic HR plan was not updated

for the year ended 31 March 2009

No significant delays experienced by the AG during the audit, on-time availability of information from Palama

Financial management systems are appropriate for adequate information management and preparation of the financial statements. Palama had substantially addressed the prior year audit findings.

Adequate control processes and procedures developed and implemented to ensure the accuracy and completeness of reported performance information.

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Conclusion

While acknowledging the achievements in the 2008/2009 financial year, we should however be mindful of the challenges posed by the developmental state.

The mandate and the strategic direction should first respond to the needs of a developmental state and secondly Palama must be repositioned to respond to the Medium Term Strategic Framework of government for the period 2009-2014