PFM CAPACITY DEVELOPMENT CFO Forum Presenter Mark Kuipers

PFM CAPACITY DEVELOPMENT CFO Forum Presenter: Mark Kuipers | Office of the Accountant-General: National Treasury | 12 August 2016

CONTENTS • • Environment Current state Ideal state Capacity development strategy Achievements Key activities What must I do? 2

ENVIRONMENT • • • Globalisation Scarce skills Human capital Educational landscape Learning & development Information technology Information age Generational cultures Economic Environmental

NEW BREED OF PROFESSIONAL • The changing environment demands a new breed • A new skills set is required – Commercial acumen – Technical expertise – Information technology – Research and analytics – Economics – Relationship management 4

CURRENT STATE OF THE PUBLIC SECTOR • • • Misaligned organisational structures Inconsistent job descriptions, grading and requirements High rates of movement and staff vacancies Ineffective recruitment practices Unqualified staff Insufficient investment in human resource development Uncoordinated capacity development interventions ETD solutions not aligned to public sector needs Limited career-pathing and career progression Limited pool of talent An ageing workforce

PUBLIC SECTOR PERFORMANCE • • Not achieving value for money Highly prescriptive, fragmented and complex Lack of transparency and accountability Corruption and political interference Multiple policy objectives Instability in the administrative leadership Service delivery failures

AUDITOR-GENERAL ISSUES • • • Weak procurement systems, processes and practices A lack of oversight and good governance practices Increasing irregular expenditure and non-compliance Inadequate internal controls and fraud prevention Inadequate contract administration and management Inadequate monitoring and performance measurement Inadequate risk management A lack of enforcement and discipline Inadequate skills and unqualified personnel Insufficient procurement related data Limited information technology capabilities Lack of internal audit support in providing assurance 7

AUDITOR-GENERAL SPECIFIC ISSUES • • Awards to persons in the service of the state Awards to family members Uncompetitive and unfair procurement processes Internal control deficiencies Inadequate SCM risk management Inadequate contract management SCM officials not adequately trained Poor document management 8

THE IDEAL STATE – BACK TO BASICS

IDEAL STATE • • • Sound political and administrative leadership and support An efficient, effective and modern state PFM system A cadre of competent and capable officials A culture of performance, ethics and accountability PFM centres of excellence

PRESIDENTIAL OUTCOME 12 • An efficient, effective and development oriented Public Service • Sub-outcomes to be achieved by 2019: – – – – A stable political-administrative interface A public service that is a career of choice Sufficient technical and specialist professional skills Efficient and effective management and operations systems Procurement systems that deliver value for money Increased responsiveness of public servants and accountability to citizens Improved inter-departmental coordination and institutionalisation of long-term planning Improved mechanisms to promote ethical behaviour in the public service 11

Mandate & Strategic Objectives National Treasury Vision The National Treasury is the custodian of the nation’s financial resources. We hold ourselves accountable to the nation to discharge our responsibilities professionally and with humility, with the aim of promoting growth and prosperity for all. We aspire to excellence in the quality of our analysis, our advice and the execution of our financial management responsibilities. We aim to realise the full potential of South Africa’s economy and people and to mobilise the resources of the state, business enterprises and the wider community in a partnership of trust and mutual respect. National Treasury Mission The National Treasury supports economic growth and development, good governance, social progress and rising living standards through the accountable, economic, efficient, equitable and sustainable management of South Africa’s public finances, maintenance of macroeconomic and financial sector stability, and effective financial regulation of the economy. Office of the Accountant General Mission To facilitate accountability, governance and oversight by promoting transparent economic, efficient and effective management in respect of revenue, expenditure, assets and liabilities in the South African public sector. 1 OAG Strategic Objectives OAG Capacity Building Strategic Objective Improve financial management governance and compliance across all spheres and entities in government 2 Support and facilitate capacity development across all spheres of government in order to improve financial management execution 3 Manage existing financial systems and renew these as required to exercise comprehensive financial management To support and facilitate PFM capacity development across all spheres of government in order to achieve and sustain excellence in the management of public funds 12

PFM CAPACITY DEVELOPMENT STRATEGY

CAPACITY DEVELOPMENT STRATEGY 14

Strategic Objectives Strategic Objective 1 To support the development of an enabling environment Strategic Objective 2 To enhance organisational capacity Strategic Objective 3 To develop and empower a corps of competent and committed employees Strategic Objective 4 To create an environment that enables and sustains mutually beneficial stakeholder relationships o need t … Will wed e e revi b 15

ACHIEVEMENTS

May 2016 17

KEY ACTIVITY DESCRIPTION KEY ACTIVITIES Generic Functional Structure Develop a generic functional structure for the CFO Office (CFO Office & PT’s) and PT Standardised Job Descriptions Job descriptions for PFM for salary levels 7 to 12 Competency Framework for Financial Management (CFFM) The CFFM describes the technical, core and behavioural competencies required for officials performing various PFM functions. It describes the knowledge, skills and attributes needed to carry out various defined activities or tasks to the requisite level of performance for a successful outcome, and are assembled in a series of competency dictionaries. Integrated Learning Matrix (ILM) A prospectus of PFM education and training solutions I-Develop The i-Develop (Individual Development Assessment) toolkit has been developed for SMC (pilot in KZN). The PFM component will be developed in 2016/17. Chartered Accountants Academy (CAA) Graduate development programme to develop CA’s for the public sector. Thirty (30) CAA trainees are registered. 18

Certificate in Public Sector Accounting Accredited Accounting Technician programme (NQF 4) for operational finance officials. 180 officials in EC, WC & NW. Post-Graduate Diploma in Public Sector Accounting Pilot delivery completed in partnership with UCT. Twentyeight (28) learners graduated. A new intake has commenced. Standard Chart of Accounts (SCo. A) 450 learners have completed the course. 200 from national departments Revenue Management 225 provincial officials have attended the workshop. Enterprise Risk Management (ERM) Master Learning Curriculum Developed a detailed outline of the knowledge and skills requirements of the public sector Risk Management Qualifications Occupational qualifications for the Risk Practitioner (NQF 6) and Risk Officer (NQF 8) have been registered on the Organising Framework for Occupations. The Risk Practitioner qualification is being delivered in the banking sector as a pilot. KEY ACTIVITIES 19

KEY ACTIVITY DESCRIPTION KEY ACTIVITIES SOP’s have been developed for multiple aspects of PFM. Standard Operating Procedures These can be customised and adopted or used for benchmarking. Basic Education Expenditure The objective is to improve the value for money and Review (KZN & WC) service delivery obtained by stakeholders in the Basic Education Sector through assessing and improving the practical impact of the data, information and reports generated at all levels within this sector. 20

KEY ACTIVITY DESCRIPTION Supply Chain Management (SCM) Master Learning Curriculum requirements of the public sector KEY ACTIVITIES Developed a detailed outline of the knowledge and skills SCM Certificate Learnership (NQF 5) A pilot programme for operational SCM staff with no formal qualifications. Forty (40) learners are completing the final module in KZN & NW Provinces. SCM Management Development Programme Skills programme to enhance the knowledge, skills and behaviours of SCM managers. Thirty-two (32) learners are commencing the pilot delivery in WC & NW Provinces. CIPS accredited solutions. SCM Executive Development Programme Skills programme to enhance the knowledge, skills and behaviours of Accounting Officers. Eight (8) sessions were delivered across SA. Bid Committees One (1) day interventions for the members of the bid specification, evaluation and adjudication committees. 378 learners attended to date. Another 60 learners scheduled to attend in Limpopo. 21

IN PROGRESS

KEY ACTIVITY DESCRIPTION the attraction, selection, KEY ACTIVITIESFramework forretention and succession recruitment, development, of PFM officials Talent Management Transformational Leadership Coaching and mentoring programmes for senior and Development emerging management PFM Knowledge Portal Central repository of PFM information and access to communities of practice (learning networks) Public Sector Qualifications Committee (PSQC) for SCM The PSQC will contribute to implementation of the Capacity Development Strategy (CDS) through the development of public sector SCM qualifications SCM Qualifications Design for the Public Sector Develop a Qualifications Standard for SCM that has relevance to the public sector (Degree & Honours) SCM Qualifications Content Develop a SCM body of knowledge that supports the Master Learning Curriculum (Degree) SCM Baseline Study Phase 1: Collate data on organisational structure, number of SCM posts funded, filled and vacant. Phase 2: Collate data on the demographic profile, qualifications and aspirations of SCM officials. 23

SCM BASELINE RESULTS • • • Inadequate SCM structures High vacancy rates Insufficient capacity in operational SCM units The demographics of officials in terms of nationality, race, gender and people with disabilities is in line with the national demographic profile Only 2% of officials are between 18 and 25 years of age An ageing workforce 61% of officials have tertiary qualifications Lack of relevant SCM academic qualifications Inadequate opportunities for attending SCM training courses Challenges in attracting and retaining qualified SCM officials The majority of SCM employees have been in government for many years without appropriate SCM academic qualifications & training 24

SCM BASELINE RESULTS Interested Qualifications 2% 7% National Certificate 13% National Diploma Bachelors Degree Honours Masters 5% Doctorate Unknown 4% 68% 1% 25

PFM ETD & PROFESSIONALISATION

WHAT MUST I DO? • • Recognise that we are in a complex global environment Adopt a holistic approach to capacity development Develop your organisational capacity Develop your individual capacity Collaborate with stakeholders Be a transformational leader Monitor and evaluate your performance and impact 27

THANK YOU Mark Kuipers email: mark. kuipers@treasury. gov. za phone: 012 -315 5542