PROGRESS REGARDING THE INSTITUTIONAL FRAMEWORK FOR PUBLIC ENTITIES (PEs) 24 Aug 2001
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Transcript of PROGRESS REGARDING THE INSTITUTIONAL FRAMEWORK FOR PUBLIC ENTITIES (PEs) 24 Aug 2001
Overview of Presentation
1. Defining a PE
2. Concerns of Cabinet
3. Cabinet decision of 4 April 2001
4. Implementing Cabinet decision• Provincial presentations• Guide to create national PEs• Formalise PE evaluation panel
5. Progress PE Project
Defining a Public Entity (PE)
A PE represents a government business enterprise, board, commission, company, corporation or fund and has one or more of the following characteristics: under the ownership/ control of nat or prov exec Assigned fin & oper auth to carry on bus activity Operates on business principles Financed fully or substantially from NRF/PRF or by way of tax,
levy or other money imposed in terms of nat/prov legislation Established in terms of legislation Accountable to Parl/prov legislature
PUBLIC ENTERPRISES(For Profit Public Entities)
PUBLIC ENTITIES(Non-Profit)
LOCATING PUBLIC ENTITIES
4
PUBLIC SERVICEDEPARTMENTS
Concerns of Cabinet
1.Bring creation, management and review of PEs under strategic direction of government
2. Need for more rigorous financial controls and policy framework for remuneration structures
3.Ad-hoc creation - risk of horizontal fragmentation within SD machinery
Concerns of Cabinet
4. Own legislation - inflexible review and repositioning
5.Fragmentation in PE establishment undermine requirement for a single public
service.
6.Large number of institutions fall outside the scope of the Public Service Management Framework
Some Statistics to Note
1. PEs consumption & generation of R warrants proper management & control. For national PEs total transfer payments - R10,2 billion (2000/2001) total net income - R15,2 billion (31 March 1999) 288,983 staff employed
2. Tremendous growth in 1990’s esp in eco and infrastruct sectors. 201 PEs listed in the PFMA: 10 were created in the 1980’s 60 were created in the 1990’s (43 - 1994 +)
Cabinet Decision of 4 April 2001
1. Development of an institutional framework
2. Broad interim process for creating national PEs & Evaluation Panel
3. MPSA & MoF • Approach the PECs to adopt the broad process• Finalise guidelines to elucidate the broad process
to create PEs & staff transfers.
4. DPSA, NT & DPE launch PE project -• Remuneration framework• Accountability framework
• Design MIS
Implementing Cabinet Decision Provincial Presentations
1. Made to the PCC, the Govern & Admin cluster of FOSAD
and the KZN Prov Cabinet
2. Planned presentation - next meeting of the provincial
DG's forum
Interim Process
• Executing Authority prepares business case
• Business case is assessed by joint panel (MPSA and MoF)
• Executing Authority and reports to relevant portfolio com and approaches Cabinet for approval of legislation
• PE implementation
Implementing Cabinet Decision Guide to Create National PEs
1. Draft guide developed, supported and inputs provided by DPSA, DPE, NT (incl PPP
unit & GEPF) & consortium
2. Guide to be submitted to -• MPSA for approval by 31 Aug 2001 • MoF for approval by 14 Sep 2001• Cabinet for notification by 30 Sep 2001
Implementing Cabinet DecisionFormalise Evaluation Panel
1. Convened at least at Dir (Manager) level & co-opt other officials
2. CP & convener - NT & DPSA
3. Meet as and when required
4. DPSA representatives - GICS/RCoS
5. Secr services rendered by dep whom the CP represents
6. Panel decides further working arrangements
Progress PE Project1. DFID funding R1 mil
2. Consortium contracted 21 Jun • KPMG • Global Edge • Mchunu Mashinini and Associated • Representivity ratio 55%
3. Scope ...
4. Project scheduling ...
5. Project organisation …
6. Current project activities ...
Progress PE Project1. Steering Committee approved on
25 Jul 2001• Scope of project• Project completed by 30 November 2001• Project organisation, roles and responsibilities
2. Had meetings/discussions with • Accountant General & Budget Office - NT
• Vulindlela co-ordinator
• Institute of Directors
• National Agricultural Marketing Council
• 2 workshops with DPE on info requirements
Project Scope Remuneration Framework
Input Outcome Value for Gov.1. Gather informationon current structures,applicable Legislationand practicesregarding: Remuneration Transfer of staff
from PublicService.
2. Comparing levels ofremuneration of PEsand categories of PEs.
3. Benchmark currentpractice withinternational bestpractice, in bothdeveloped anddeveloping countries.
4. Conduct needsanalysis with relevantdepartments.
1. Specifying: Job grading Job evaluation Processes Institutional rewards & incentives Requirements for job evaluation.2. Developing: Models of remuneration Conditions of service for management Conditions of service for controlling body Costing models for remuneration & conditions of
service for categories of PEs
Knowledge ofcurrentremunerationstructures in place.
Detailed andspecifiedremunerationportray andstructure for allcategories of PEs.
Ability to makeinformed decisionson remunerationpolicy issues.
Project Scope Accountability Framework
Input Outcome Value for Gov.1. Determine currentpractices regardingestablishment of PEs.
2. Determinecomparativeinternational standardsin developed anddeveloping countries.
3. Conduct needsanalysis with relevantdepartments.
1. Develop model that provides for: Detailed categorising of PEs Determining level of autonomy and accountability.
2. Specifying roles of: Minister as Executive Authority Director-General as designated Accounting Officer Controlling Body as Accounting Authority CEO as designated Accounts Authority.
3. Reporting model which includes: Performance reports against predetermined
objectives Performance reporting in accordance with
mandate Financial disclosure Reports on corporate governance.
4. Development of establishment model and processesincluding: Criteria for establishment of new PE Mandate scrutiny in relation to existing mandates
in Government and PEs Specifications regarding the transfer of staff, assets
and revenue Review of performance and mandate every 5 years
5. Drafting of Legislative framework whether inrespect of the PFMA or alternate legislation.
Knowledge ofcurrentaccountabilitystructures in place.
Detailed andspecifiedaccountabilityframework andstructure for allcategories of PEs.
Ability to makeinformed decisionson accountabilityand governancepolicy issues.
Project Scope Management Information System
Input Outcome Value for Gov.1. Analyse currentinformation systems.
2. Determine user'sneeds includinginformation resourcesand data manipulationprocesses.
1. Report on management information requirements.
2. Develop high-level system requirements.
3. Development of detailed MIS specifications based onneeds requirements of users.
Analysis of currentstatus.
Outline ofspecification ofintended system thatwill be available toall stakeholders in asecure environment.
Project SchedulingPlanned OutcomesProject Planning & Management - 36 weeks
Initial investigation & info gathering 13w
Remuneration framework and report 14w
Accountability framework & report 20w
Management information system developed 20w
Final report submitted 3w
Jun Jul Aug Sep Oct Nov Dec Jan Feb
Revised OutcomesProject Planning & Management - 22 weeks
Initial investigation & info gathering 8w
Remuneration framework and report 12w
Accountability framework & report 12w
Management information system developed 12w
Final report submitted 2w
Oct Nov Dec JanJun Jul Aug Sep Feb
Project Organisation Roles & Responsibilities
Roles ResponsibilitiesSteering Committee Ensure alignment of project objectives with Cabinet
memorandum/decision. Provide strategic direction to the project. Monitor progress of the PE project. Provide direction regarding policy and scope changes. Approve changes to scope and corresponding budget implications. Facilitate the resolution of project issues.
Project Co-ordinator Obtain sign off of project deliverables. Decision taker/or refers to Steering Committee for decision. Monitor progress of project weekly. Source of information for project.
Engagement PartnerKPMG
Provide strategic direction to project team. Ensure that appropriate resources are allocated to the project. Approve frameworks. Ensure quality of deliverables. Attend Steering Committee meetings. Lock-up partner (budget overruns).
Project Manager(KPMG)
Accountable for project delivery. Approve detailed deliverables. Manage interface between project team and co-ordinator. Monitor the progress of project. Resolve high-level project issues. Report on progress. Attend Steering Committee and project meetings.
Project Committee Ensure alignment of project objectives with stakeholder needs. Provide frequent strategic insight to the project. Monitor progress of the project on a weekly basis. Provide direction regarding policy and scope changes.
Project Team Deliver outputs per project scope & plan. Facilitate interface points with other processes. Provide feedback to project manager and others team members. Present a consistent and professional image to the client. Ad-hoc members also serve as a reference group.
Progress PE Project
Current project activities 1. Finalising research into PE legislation
2. Research international best practice
3. Preparing for meetings with selected depts & PEs
4. Drafting & sending out questionnaire to depts & PEs
5. Investigate current MIS systems & needs