1 PRESENTATION OUTLINE Introduction Objectives Scope of - - PowerPoint PPT Presentation

NATIONAL MACRO ORGANIZATION OF STATE (NMOS) PROJECT: 2014 Presentation to Provincial Administrations / EXCOs

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July 2014

PRESENTATION OUTLINE  Introduction  Objectives  Scope of work  Project Plan and End Dates  Governance  Legal Aspects  Project Governance  Functions of Work-streams  Progress to Date

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Introduction

New Cabinet was announced on 25 May 2014:  Cabinet introduced a number of changes to the previous configuration of the national Executive and departments.  This has a direct impact on the administrative structures in support of Ministers and Deputy Ministers:

 New departments are created, with the transfer of functions between departments .  The functional content of departments will have to change to give effect to the new ministerial portfolios, mainly by transferring functions between departments and instances of nomenclatures changes.  Nomenclature changes to conform to the Ministerial portfolio designations.

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Objectives of TOR

 To describe the programme of action needed to ensure that the macro

• rganizational

changes give administrative effect to the President’s new Cabinet portfolios.  Ensure alignment between the announced Ministerial portfolios and the administrative structures in support of ministers responsible for such portfolios.  Sets out the roles and functions of the primary role players governing and contributing to the roll-out of the Programme

 Governance structures  Stakeholders  Support staff

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Scope of Work NMOS 2014

 Nomenclature changes of departments to align with the new ministerial portfolio designations.  The creation of new departments in support of new ministerial portfolios (this will include new names for the new departments to be aligned with the ministerial portfolio designations).  The transfer of functions to and from departments to align the departmental functions with the new ministerial portfolios. This will include the renaming of departments.  New departments will be created through the transfer of functions from existing departments.

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Affected Departments and Institutions

13 Existing departments and institutions affected by the transfer

• f functions, renaming and creation of departments:

 Department of Communication (SABC, MDDA, GCIS and ICASA ,Brand SA)  Government Communication and Information System  Department of Performance Monitoring and Evaluation  Department of Women, Children and People With Disabilities  Department of Water Affairs  Department of Economic Development  Department of Social Development  Department of Human Settlement  The Presidency  Department of Trade and Industry (SEDA, SAWEN)  National Planning Commission  Public Service and Administration (SITA)  Public Enterprises (Infraco)

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Renaming and new Departments

2 renamed departments:  Department of Planning, Monitoring and Evaluation  Department of Women  Department of Water and Sanitation 2 new departments created:  Department of Small Business Development  Department of Telecommunications and Postal Services (USAASA, NEMISA, SAPO, SENTECH, SITA) GCIS - delisted

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Transfer of Functions (Subject to

Executive Approval)

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Function From To Government Communication and Information System GCIS Communication Telecommunications Communications Telecommunications and Postal Services National Planning Commission The Presidency Planning, Monitoring and Evaluation

Transfer of Functions (Subject to

Executive Approval)

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Function From To Sanitation Human Settlements Water and Sanitation Support to people with disabilities and children Women Social Development Small business development DTI and EDD Small Business Development Public Entities: The Executive will provide direction on the transfer of associated public entities to ministerial portfolios

Project Plan - End Dates

The programme is scheduled for completion from May 2014 to November 2014.  Establish programme governance structures - 13 June 2014.  Preparation for programme execution by work-streams – 13 June 2014.  Transfer the administration of legislation to Ministers - 15 July 2014.  Creation of departments and transfer of functions - 26 September 2014.  Organisational structuring of affected departments - 26 September 2014.  Nomenclature changes listing of new departments - end June 2014.  Infrastructure and Assets - 29 August 2014.  Finance and Budgets - 26 September 2014.  ICT systems - 29 August 2014.  Legal matters - 26 September 2014.  Change management and communication - ongoing. Note that most of the above-mentioned deliverables will run concurrently.

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Legal Aspects NMOS

 S97 of the Constitution – The President by proclamation may transfer the to a member of Cabinet the administration of legislation entrusted to another member.  S7(5) of the PSA – The President may by proclamation in the Gazette on the advice of the MPSA amend Schedule 1 so as to establish or abolish any national department.  S(3)(4)(b) – The MPSA may after consultation with the relevant executive authority or executive authorities, as the case may be, make determinations regarding:  the allocation of any function to national departments, or  the transfer of any function from one national department to another.

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Legal Aspects Provincial Macro Organisation of the State

 S132(2) of the Constitution – The Premier of a province appoints the members of the Executive Council, assigns their powers and functions.  S137 of the Constitution – The Premier by proclamation may transfer the to a member of the EXCO the administration of legislation ; or any power or function entrusted by legislation to another member.  S7(5)(b) of the PSA – The President may by proclamation in the Gazette at the request of a Premier amend Schedule 2 so as to reflect the establishment, abolishment, designation or amendment in respect of any provincial department – It is proposed that the Premier write a letter to the MPSA to request any amendment to Schedule 2.  S3A(b) of the PSA – The Premier of a province may make determinations regarding:  the allocation of any function to any provincial department, or  the transfer of any function from one provincial department to another.

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Legal Aspects

PSR 1/III/H - If the Minister or a Premier of a province makes a determination regarding the transfer of functions between departments-  The relinquishing department shall transfer all concomitant resources, including personnel, to the receiving department;  The recipient department shall co-ordinate the transfer;  The recipient department shall accept accountability for the functions on the  date of the transfer;  The accounting officer of the relinquishing department shall retain accountability for matters originating prior to the date of transfer;  The transfer of personnel shall take place with due regard to the requirements of the Labour Relations Act; and  The transfer of funds shall take place in accordance with the requirements of paragraph 6.5 of the Treasury Regulations.

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NMOS Project Governance

Collaboration

NMOS 2014: Steering Committee: DG: DPSA DG: Presidency (Chair) DG: GCIS DG: DPW DG: NT DGs of Affected departments NMOS: Project team. DG DPSA: Chair DDG: Governance: Secretariat Department Project Team DPT (Chair) Work streams: WS1 Org Scoping/ HR Staff Audit & Organisational Design WS 2 Infrastructure & Assets WS 3 Finance & Budgets WS 4 ICT Systems WS 5 Legal & Policy Matters DPT 6 Labour Relations, Change Mgt & Communications National Project Team (NPT) Work streams: WS 1 Org Scoping/ HR Staff Audit & Organisational Design WS 2 Infrastructure & Assets WS 3 Finance & Budgets WS 4 ICT Systems WS 5 Legal & Policy Matters WS 6 Labour Relations, Change Mgt &Communications

PRESIDENT

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NMOS, 2014 Steering Committee

 Composition:

 DGs in the Presidency, GCIS, DPSA, National Treasury, Public Works and the DGs

• f all affected departments.

 Functions:

 The implementation of the mandate of Government as determined by the President and Cabinet on the matter.  The overall management of the NMOS Programme as described as above.  To provide political referencing to political principals and overall guidance pertaining to issues that may emerge from time to time.  To resolve and trouble-shoot any ambiguity in interpretation of political decisions and legal mandates and refer to political principals.  To unblock obstacles that may emerge during the roll-out of the programme in any line department.  To receive progress reports from the NMOS Project Team on the work done in the NPT and DPTs.  To ensure quality assurance of the final products and reports for decision-making by political office bearers.  To act as a high level forum for consultation for affected departments and support to departments.

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National Project Team

 Composition:

 NPT with representatives from the relinquishing and recipient departments, under the stewardship of the DPSA. Task teams will be supported by officials from the dpsa, the National Treasury and DPW.

 Functions:

 The overall management of the reconfiguration process at departmental level.  To oversee the implementation of the domesticated work-plan for each DPT derived from the generic work plan.  To provide regular progress reports of the DPT to the NMOS Steering Committee.  Render support and advice to the DPTs.  To ensure quality assurance of the products and reports of the relevant DPT.  To unblock obstacles that may be encountered by the DPTs.  To act as a forum of consultation between NPTs and DPTs.  To integrate the product of the DPTs before submission to the NMOS Secretariat NB:-The State Law Advisor will support and quality assures the legal processes.

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Departmental Project Team

 Composition: (relinquishing and recipient departments share one DPT):

 DPT with representatives from the relinquishing and recipient departments, under the chairpersonship of the recipient DG. Departmental work streams will be supported by officials from the National Project Team.

 Functions:

 Overall The overall management of the different departmental work streams.  To implement the domesticated work-plan for each DPT (derived from the generic work plan).  To provide regular progress reports to the DG and the NPT.  Ensure quality assurance of the products and reports of the relevant DPT.  Unblock obstacles that may be encountered by the various work streams.  Act as a forum of consultation between various work streams.  Integrate the product of the work streams before submission to the DG and NPT.  DPTs must render their own secretariat services and maintain minutes all meetings.  Ensure that the DG/HOD of recipient and relinquishing departments sign off on progress report.

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Mobilizing Work-Streams

 Assign roles and responsibilities to NPT and DPT Work-streams.  Develop TOR for the work streams.  Nominate members from line and corporate support services.  Develop a reporting framework  Develop a meeting schedule.  Appoint a secretariat to support and record proceedings.

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Functions of Work Stream 1 –

Organisational Scoping, HR staff Audit and Organisational Design (DPSA)

 Organizational scoping -

 Analyse the legislative mandate and content of the functions to be transferred.  Identify overall the resources associated with the functions and develop a business case.

 Staff audit work -

 Determine the numbers of in-scope staff relevant to the respective functions to be transferred.  Analyze which posts are filled, vacant, funded and unfunded, and abolish unfunded posts.  Identify the posts and staff members devoted to the affected functions to be transferred.  Provide inputs into the transfer agreement.

 Organisational structuring –

 Develop organisational structure for the affected departments.  Compile a work stream report and obtain the concurrence of EAs.  Table report and transfer agreement at DBC for information and then to MPSA for a determination.  Final approval by EA is after consultation with the MPSA. 19

Functions of Work Stream 2 –

Infrastructure and Assets (DPW)  Analyze assets register, building, parking and accommodation needs

• f the National Executive and affected departments.

 Determine needs of new departments.  Audit the approved budget and asset register, including the accommodation utilized for the delivery of the functions.  Determine portion of the budget and assets that should be transferred to the affected departments.

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Functions of Work Stream 3 –

Finance and Budgets (NT)  Provide guidelines for financial, budgeting and auditing arrangements.  Analyze the approved budget of the relinquishing departments relevant to the affected functions.  Determine budget needs of new and recipient departments.  Reconcile expenditure of affected departments.  Develop MTEF proposals.  Provide inputs for the appropriation budget process.

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Functions of Work Stream 4 –

ICT Systems (DPSA)  Analyze ICT systems, hardware and databasis.  Audit ICT systems, hardware and databasis  Apportion ICT systems, hardware and databasis to affected departments.  Obtain HoD, DPSA and NT approval.

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Functions of Work Stream 5 –

Legal and policy matters (DPSA)  Drafting Presidential Proclamation for amending schedule 1 of the PSA.  Draft Presidential Proclamation for the assignment of legislation to Eas.  Draft Transfer Agreement.  Analyze legal instruments such as contracts and draft revised or new legal instruments.  Effect legislative amendments.

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Functions of Work Stream 6 –

Labour Relations, Change Management and Communication (DPSA)  Consultation with organised labour PSCBC / GPSSBC or NMOS

• utcomes.

 Consult with organised labour on departmental Transfer Agreements.  Support departments in relation to labour relations.  Develop change management strategies.  Develop Communication Strategy to manage the transition.  Develop communication messages.

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General Progress with the NMOS

 The project was officially launched on 4 June 2014 at the NMOS Project Team workshop held with all centre of government departments and all affected departments.  National and Departmental Project Teams and work-streams for affected national departments have been established and commenced their work.  The first NMOS Project Team progress meeting with affected departments was held on 27 June 2014.  The NMOS Project Team meet bi-weekly to ascertain progress, to inform the Steering Committee on progress and to elevate challenges to the Steering Committee.  The Project ToR, relevant documentation and guides are available on the website of the DPSA at the following link:

http://www.dpsa.gov.za/dpsa2g/nmos_documents.asp

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Progress: Legal and Policy Matters

 Proclamation to amend Schedule 1 of the PSA for the creation and renaming of departments was signed by the President on 7 July 2014.  Proclamation for the assignment of laws in terms of S97 of the Constitution is being finalised with the assistance of the State Law Advisor for consideration by the President.  In instances where further policy decisions must be made by the National Executive, more than one Proclamation to amend Schedule 1

• r Proclamation for the assignment of laws may follow so as not to

delay those departments that are ready.

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Progress: Finance

 National Treasury will table technical corrections for the Appropriation Bill to Parliament and to National Council of Provinces in July 2014.  The 2014 Appropriation Bill will create new votes to bring the Bill in line with Schedule 1 of the PSA.  Votes are being created so as to enable funds to be transferred to new departments from existing budget votes, as functions are fully transferred to departments, and the departmental structures are properly established.  Only once new departments are fully established and become

• perational and functions have been effectively transferred will it be

possible to calculate accurate allocations in terms of the new vote structure - In terms of Section 33 of the PFMA, as functions are transferred between departments so are the associated funds.  Expenditure incurred during the transition, provision will be confirmed in the 2014 Adjustments Appropriation Bill.

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Progress: Labour Relations and Communications

 At a meeting of the PSCBC on 20 June 2014, DPSA made a presentation to inform parties on the project approach, processes and principles emanating from the project.  The employer and trade union parties agreed that employment security is a priority and no employee shall be negatively affected as a result of the transfer and ring-fencing process.  The PSCBC resolved to enter into an agreement on the Human Resource Principles governing the NMOS project.  This agreement will provide the basis for affected departments to consult trade unions in the relevant DBCs and direct the content of the Transfer Agreement that departments must consult with Trade Union parties.  Departments must issue regular staff circulars to communicate to affected staff. A draft staff circular is available on the DPSA website.

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Siyabonga

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