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Public Service Act and challenges faced in its implementation with the Public Finance Management Act Presentation to Portfolio Committee on Public Service and Administration - 9 November 2011. 1. Content. Role of political and administrative heads under Public Service Act (PSA)

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  1. Public Service Act and challenges faced in its implementation with the Public Finance Management Act Presentation to Portfolio Committee on Public Service and Administration - 9 November 2011 1

  2. Content • Role of political and administrative heads under Public Service Act (PSA) • Challenges in implementation • Way forward 2

  3. PSA - EA & HOD (1) • Executive Authority (EA) - political head • President/Minister/Premier/MEC/Chair-person of PSC iro OPSC • Appointed by President/Premier ito Constitution • Normally serve term of government, but may be replaced by President/Premier during term 3

  4. PSA - EA & HOD (2) • Head of department (HOD) – administra-tive head • Director-General in case of national departments and Offices of Premier • Appointed by President/Premier ito applicable legislation unless delegated • Maximum renewable term – 5 years • Provisions of PSA and/or sector specific employment legislation apply to terms & conditions 4

  5. PSA - EA & HOD (3) • EA of department ito PSA responsible for • organisational structure and establishment • strategic planning • service delivery improvement programme 5

  6. PSA - EA & HOD (4) • EA vested with bulk of HR powers iro employees • HR planning • creation & abolition of posts • appointments, performance manage-ment, transfer, dismissal (except for misconduct) and other career incidents of employees 6

  7. PSA - EA & HOD (5) • HOD ito PSA responsible for efficient management & administration of department, including • effective utilisation & training of staff • maintenance of discipline • promotion of sound labour relations • proper use & care of state property • implementing sanctions for misconduct 7

  8. PSA - EA & HOD (6) • PSA enables EA (not obliged) to delegate PSA powers and duties to HOD • May only delegate to HOD and not to other employees in department • EA may impose conditions when exercising delegated powers & duties • HOD may further delegate these powers & duties 8

  9. CHALLENGES IN IMPLE-MENTATION OF PSA WRT PFMA (1) • EA’s decision ito PSA having financial impli-cations must be in writing & within limits of authorised funds • AO or delegated official to approve expenditure • Examples of decisions • Expanding post establishment • Appointments additional to establishment • Upgrading of posts • Higher salaries awarded to recruit or retain 9

  10. CHALLENGES IN IMPLE-MENTATION OF PSA WRT PFMA (2) • Possible conflict between EA & HOD (as AO) wrt their different powers under PSA and PFMA limited by • measures in PFMA, e.g. monthly expenditure reports by HOD to EA requiring written directives by EA, processes to deal with unauthorised expenditure • delegation by EA of certain powers & duties under PSA to HOD 10

  11. CHALLENGES IN IMPLE-MENTATION OF PSA WRT PFMA (3) • Lack of, or inadequate, delegation of HR powers may, especially in large departments, result in slow decision-making • Conflict may arise if HOD refuse to approve funds because seen as • outside budget vote (scope of department’s mandate) • resulting in irregular expenditure or fruitless and wasteful expenditure, e.g. EA makes appointment that does not accord with PSA prescripts • One is refusing to approIf not sound interpersonal relations 11

  12. CHALLENGES IN IMPLE-MEMTATION OF PSA WRT PFMA (4) • If conflict between EA and HOD arises in this regard • Could sour or even result in breakdown in trust relationship • One using powers to obstruct other, e.g. HOD frustrating financial approval, EA withdrawing HR delegations 12

  13. WAY FORWARD - POSSIBLE CHANGES TO STRENGTHEN PSA • Consider advantages/disadvantages of • locating HR management functions in HOD, subject to EA’s policy directives • exception for top management appointments (i.e. DDG level) - to be made by EA or with concurrence of EA • DPSA developed principles and templates for PSA delegations for departments • Propose to seek Cabinet’s approval as standard for PSA delegations • Trust and professionalism play key role in political-administrative interface – these matters are not matters that can always be regulated by legislation 13

  14. End

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