CENTRE FOR PUBLIC SERVICE INNOVATION - CPSICENTRE FOR PUBLIC SERVICE INNOVATION 2016/2017 FINANCIAL...

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CENTRE FOR PUBLIC SERVICE INNOVATION

VOTE NO 47ANNUAL REPORT

2016/2017 FINANCIAL YEAR

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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


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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


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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.


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.


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


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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

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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.


2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 2 0

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


2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 2 1

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.


2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 2 2

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


2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 2 3

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.


2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 2 4

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


2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 2 5

(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.


2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 2 6

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.


2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 2 7

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2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 2 9

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2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 3 0

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2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 3 1

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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.


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.


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



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

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R’000

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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


2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 3 4

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.


2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 3 5

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


2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 3 6

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


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


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:


2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 3 7

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.


2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 3 8

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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


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


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


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


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


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


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


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


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


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

/201

7

Co

mm

ent

on

dev

iati

ons

Num

ber

of

reg

iona

l and

in

tern

atio

nal

inno

vatio

n p

rog

ram

mes

p

artic

ipat

ed in

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

ive

--

Part

icip

ated

in

the

Co

mm

ittee

of

Exp

erts

in P

ublic

A

dm

inis

trat

ion

(CE

PA) i

n A

pril

20

15

Co

nduc

t tw

o

SAD

C c

oun

try

visi

ts

Ach

ieve

d

The

CPS

I p

artic

ipat

ed in

tw

o (2

) reg

iona

l an

d in

tern

atio

nal

pro

gra

mm

es:

• Th

e 16

th

sess

ion

of t

he

Uni

ted

Nat

ions

C

om

mitt

ee

of E

xper

ts

in P

ublic

A

dm

inis

trat

ion

(CE

PA) o

n 17

-22

Ap

ril 2

016

• Th

e A

UC

STC

08

Sec

ond

O

rdin

ary

Sess

ion

to

man

age

the

del

iver

y o

f the

20

16 A

ll A

fric

a Pu

blic

Sec

tor

Inno

vatio

n A

war

ds

(AA

PSIA

) on

6-10

Dec

emb

er

2016

No

ne

No

ne


2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 4 9

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


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


R’000

Final Appropriation

R’000

Actual Expenditure

R’000


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


2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 5 0

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.


2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 5 1

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


R4 698


R0


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.


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


750


750


There are no unspent funds.


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


2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 5 4

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


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


2 February 2017 Briefing of the Portfolio Committee on the Second and Third Quarters Performance Report


15 March 2017 Briefing by CPSI on new innovation projects aimed to unlock service delivery challenges in the Public Service



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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)


-- 4

Ms. Precious Mvulane

CA and RA (SA), Specialist Diploma in Auditing, BCom Honours in Accounting


-- 4

Ms. Pumla Mzizi CA (SA), BCom Hons in Transport Economics, BCompt Honours, BBusSc Honours in Finance


-- 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


2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 6 2

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)


as a % of total

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


vacant

% of SMS posts vacant

Head of Department 1 1 100% - 0%

Salary Level 16 - - 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


filled

% of SMS posts filled


vacant

% of SMS posts vacant

Head of Department 1 1 100% - 0%



Salary Level 14 3 3 100% - 0%

Salary Level 13 2 2 100% - 0%

Total 6 6 100% - 0%


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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 - - -




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 - - -





Total - - -


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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


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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 - - -


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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


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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



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


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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.



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


2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 7 2



None - - - - - - - - -

Table 3.6.6 Disciplinary action for the period 1 April 2016 to 31 March 2017



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 - - - - - - - - -


- - - - - - - - -


- - - - - - - - -

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


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 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


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 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 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


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


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


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


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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 - - - - -


Female - - - - -

Male - - - - -

Craft and related trades work-ers

Female - - - -

Male - - - - -


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


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 - - - - -


Female - - - - -

Male - - - - -

Craft and related trades workers

Female - - - - -

Male - - - - -


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


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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




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


1 3 1 866.20


1 3 1 909.60


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


1 3 1 909.60


1 4 2 430.40


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



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


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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


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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


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


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:


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


2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 8 7

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


2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 8 8

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2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 9 3

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2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 9 4

2016

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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 %


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 %


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


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.


NOTES TO THE APPROPRIATION STATEMENTfor the year ended 31 March 2017


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


STATEMENT OF FINANCIAL PERFORMANCEfor the year ended 31 March 2017


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 - -


STATEMENT OF FINANCIAL POSITIONfor the year ended 31 March 2017


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 - -


STATEMENT OF CHANGES IN NET ASSETSfor the year ended 31 March 2017


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


CASH FLOW STATEMENTfor the year ended 31 March 2017


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


ACCOUNTING POLICIESfor the year ended 31 March 2017


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.




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.




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.




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


NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2017


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




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




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 -




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.




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


tary assetsLand

Buildings and other

fixed struc-tures


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 **


tary assetsLand

Buildings and other

fixed struc-tures


mentTotal

R’000 R’000 R’000 R’000 R’000 Not later than 1 year - - - 87 87




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


tary assetsLand

Buildings and other

fixed struc-tures


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




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




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


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


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


Intangible assets

Heritage assets


ment

Biological assets

Total

Number of minor assets at cost

- - - 591 - 591

Total number of Minor Assets

- - - 591 - 591




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


Intangible assets

Heritage assets


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


Intangible assets

Heritage assets


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 )


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


R’000 R’000 R’000 R’000 R’000 Software - - 308 - 308 Total Intangible Capital Assets - - 308 - 308




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)


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




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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2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 118

NOTES


2 0 1 6 / 2 0 1 7 F I N A N C I A L Y E A R 119


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

CENTRE FOR PUBLIC SERVICE INNOVATION - CPSICENTRE FOR PUBLIC SERVICE INNOVATION 2016/2017 FINANCIAL...

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