FOR PUBLIC FINANCIAL MANAGEMENT: PSETA Skills Colloquium. - - PowerPoint PPT Presentation

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FOR PUBLIC FINANCIAL MANAGEMENT: PSETA Skills Colloquium. - - PowerPoint PPT Presentation

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CAPACITY DEVELOPMENT STRATEGY FOR PUBLIC FINANCIAL MANAGEMENT: PSETA Skills Colloquium. ACHIEVING EXCELLENCE IN THE MANAGEMENT OF PUBLIC FUNDS Presenters: James Motha ! Director ETD , Capacity Building ! 27 March 2015 CONTENT Development

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CAPACITY DEVELOPMENT STRATEGY FOR PUBLIC FINANCIAL MANAGEMENT:

PSETA Skills Colloquium.

ACHIEVING EXCELLENCE IN THE MANAGEMENT OF PUBLIC FUNDS

Presenters: James Motha ! Director ETD , Capacity Building ! 27 March 2015

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CONTENT

  • Development Process
  • Research
  • Mandate
  • Scope
  • Capacity Development Strategy
  • Progress
  • Way Forward

2

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DEVELOPMENT PROCESS

  • Research
  • Team of experts
  • Reference Group
  • Extensive consultation
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RESEARCH

  • Vacancies, movement and turnover
  • Capacity development
  • Stakeholders (stakeholder analysis)
  • Legislative analysis
  • Education, training and development (ETD) supply

4

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PROBLEM INDICATORS

  • Poor financial management performance (AG results)
  • Low levels of financial management maturity (FMCMM results)
  • Vacancy rate of 34% (private sector rate is 3.7%)
  • Staff turnover rate of 13 months
  • Attraction and retention remains a challenge
  • Inconsistent job descriptions, grading and requirements
  • Organisational structures vary per province and/or department
  • Uncoordinated capacity development interventions
  • ETD solutions are not aligned to public sector needs
  • Limited professionalisation
  • Limited career-pathing and career progression
  • Limited pool of talent (national shortage of scarce skills)
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MANDATE

  • Constitution:

S216 – National legislation must establish a national treasury and prescribe measures to ensure both transparency and expenditure control in each sphere of government, by introducing- (a) generally recognised accounting practice; (b) uniform expenditure classifications; and (c) uniform treasury norms and standards.

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MANDATE – NATIONAL TREASURY

  • Public Finance Management Act (PFMA):

– ‘must prescribe uniform treasury norms and standards’ [Section 6 (2) (a)] – ‘must enforce this Act and any prescribed norms and standards’ [Section 6 (2) (b)] – ‘may assist departments and constitutional institutions in building their capacity for efficient, effective and transparent financial management’ [Section 6 (2) (d)] – ‘may do anything further that is necessary to fulfil its responsibilities effectively’ [Section 6 (2) (g)]

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MANDATE - LOCAL GOVERNMENT

  • “The national government and provincial governments, by legislative and
  • ther measures, must support and strengthen the capacity of

municipalities to manage their own affairs, to exercise their powers and to perform their functions” [Constitution Ch 13 (154)(1)]

  • “Each provincial government must establish municipalities ... and

promote the development of local government capacity to enable municipalities to perform their functions and manage their own affairs” [Constitution Ch 13 (155)(6&6b)]

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MANDATE – CONTINUED

  • National Treasury mandate as per the MFMA:

– The national and provincial governments must by agreement assist municipalities in building the capacity of municipalities for efficient, effective and transparent financial management (S34 (1)) – The accounting officer, senior managers, the chief financial officer and other financial officials of a municipality must meet the prescribed financial management competency levels (S83 (1)) – The accounting officer, senior managers, any chief financial officer and all other financial officials of a municipal entity must meet the prescribed financial management competency levels (S107 (1)) – The accounting officer and all other officials of a municipality or municipal entity involved in the implementation of the supply chain management policy of the municipality or municipal entity must meet the prescribed competency levels (S119 (1))

9

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SCOPE

  • Current Scope:

– Local, Provincial and National Government – Functions within the Office of the CFO – Internal Audit – Risk Management

  • Extended Scope:

– Financial Management (core transversal competency) – Governance – Public Entities

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PROCESS

  • Research:

– Diagnosis (current state of PFM) – Capacity development good practice

  • Reference Group
  • Develop Conceptual Framework
  • Consultation on Conceptual Framework:

– Provincial Accountant-Generals – Chief Financial Officers – Public Sector Expert Practitioner Committees – Forum (CAE, CRO and HRM&D) – Key Stakeholders (NT, PALAMA, DPSA)

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PROCESS - CONTINUED

  • Draft Capacity Development Strategy (CDS)

– Research Summary – Problem Statements – Strategic Objectives – Key Performance Indicators – Key Activities (prioritisation)

  • Consultation on Draft CDS:

– Provincial Accountant-Generals – Chief Financial Officers – Public Sector Expert Practitioner Committees – Forum (CAE, CRO and HRM&D) – Key Stakeholders (NT, PALAMA, DPSA)

  • Process Revisions

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PROCESS - WAY FORWARD

  • Final CDS
  • FOSAD endorsement
  • Cabinet endorsement
  • Consult with External Stakeholders (PBs, HEIs, SPs)
  • Source Funding:

– Bridging from multiple donors (2011/12) – Stand alone (2012-17) – General budget support (2013-2018)

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TIMELINE

Jan – June 2010 6 months Research July – Dec 2010 6 months Conceptualisation & Consultation Jan – June 2011 6 months Draft Strategy & Consultation July – Sept 2011 3 months Final Consultation Jan – May 2012 5 months Local Govt. Inclusion 14 14

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KEY CONSIDERATIONS

  • Risk – rejection due to political factors

– LG solution will require extensive consultation & buy in – Elections & new Government led intervention

  • Role Players:

– DPSA and PALAMA – COGTA and SALGA

  • Governance Arrangements:

– Accounting Officer, MEC, SCOPA and Parliament – Municipal Manager, Municipal Council, Premier, PT, NT and Oversight

  • Legislation:

– PFMA, Treasury Regulations – MFMA, Municipal Systems & Structures Act

  • Centralised IT Systems (BAS & Persal)

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CAPACITY DEVELOPMENT STRATEGY

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PRINCIPLES

  • Practical
  • Developmental
  • Sustainable
  • Flexible
  • Engaging
  • Holistic
  • Addressing government priorities

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STRATEGIC OBJECTIVES

  • To support the development of an enabling environment
  • To enhance organisational capacity
  • To develop and empower a corps of competent and committed

employees

  • To create an environment that enables and sustains mutually beneficial

stakeholder relationships

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INTEGRATED CAPACITY DEVELOPMENT FRAMEWORK

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STRATEGY DESIGN

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PROBLEM STATEMENTS

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STRATEGIC OBJECTIVES

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THE LINK – SO’s & PS’s

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CAPACITY DEVELOPMENT APPROACH

  • Short, medium and long-term solutions
  • A phased approach to developing capacity (FMCMM)
  • Integration with existing and new systems, structures and practices
  • Versatile approach to the provision of ETD solutions
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VERSATILE APPROACH TO ETD

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LEVERS FOR CHANGE

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INTEGRATED CAPACITY DEVELOPMENT FRAMEWORK

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STRATEGY DESIGN

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29 29

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STRATEGIC LEVERS

  • Champions of Change
  • Management and Leadership Capability
  • Team/Group Level Transformation
  • Fast track Professionalisation of Senior Management
  • Diagnosis as a Powerful Mechanism
  • Knowledge and Information Management
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STRATEGY DESIGN

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KEY ACTIVITIES – SO1

Support the development of an enabling environment

  • KA 1.1

Support departments through the provision of PFM related policy, norms, standards, frameworks & guidelines

  • KA 1.2

Support departments through the provision of organisational & HRM related policy, norms, standards, frameworks & guidelines

  • KA 1.3

Create, support & maintain Knowledge & Information Sharing platforms, mechanisms & systems

  • KA 1.4

Professionalise FM, IA & ERM

  • KA 1.5

Establish & maintain relevant governance structures

  • KA 1.6

Standardise & regulate job profiles

  • KA 1.7

Develop & implement a Competency Framework

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KEY ACTIVITIES – SO1 (cont.)

Support the development of an enabling environment

  • KA 1.8

Develop & implement an Integrated Learning Matrix

  • KA 1.9

Develop occupational qualifications

  • KA 1.10

Coordinate, influence & develop formal ETD programs

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KEY ACTIVITIES – SO2

Develop and enhance organisational capacity

  • KA 2.1

Evaluate and refine PFM Systems

  • KA 2.2

Identify & implement good practices

  • KA 2.3

Provide support on Organisational Design

  • KA 2.4

NT to provide integrated & coordinated support to dept’s

  • KA 2.5

PTs to provide integrated & coordinated support to dept’s

  • KA 2.6

Provide workplace-based technical advisory support

  • KA 2.7

Institutionalise HR Connect

  • KA 2.8

Institutionalise the FMCMM

  • KA 2.9

Support the institutionalisation of a learning culture

  • KA 2.10

Support the implementation of the PMDS

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KEY ACTIVITIES – SO2 (cont.)

Develop and enhance organisational capacity

  • KA 2.11

Develop a Transformational Change Leadership & Management programme

  • KA 2.12

Develop mechanisms to match people to posts, placing and/or re-skilling

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KEY ACTIVITIES – SO3

Develop & empower a sustainable corps of competent & committed employees

  • KA 3.1

Support the implementation of Informal Learning

  • KA 3.2

Support the implementation of Non-formal Learning

  • KA 3.3

Support the implementation of formal ETD programmes

  • KA 3.4

Establish learning networks

  • KA 3.5

Develop & implement On-Boarding programmes

  • KA 3.6

Develop & implement an Employee Engagement Prog

  • KA 3.7

Develop Career Paths

  • KA 3.8

Talent Retention

  • KA 3.9

Implement Succession Planning

  • KA 3.10

Develop & implement a Talent Pipeline

  • KA 3.11

Develop mechanisms to attract candidate employees

  • KA 3.12

Develop mechanisms to assess candidate employees

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KEY ACTIVITIES – SO4

Develop an environment that enables & sustains mutually beneficial stakeholder relationships

  • KA 4.1

Develop & manage the Stakeholder Relationship Management Plan

  • KA 4.2

Develop & implement an ETD Delivery Plan

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CAPACITY DEVELOPMENT PROGRESS

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Competency Framework for Financial Management (CFFM)

CAPACITY DEVELOPMENT PROGRESS

Technical Competency Dictionaries (TCDs)

  • Management Accounting
  • Financial Accounting
  • Revenue Management
  • Expenditure Management
  • Asset Management
  • Supply Chain Management
  • Internal Control
  • Enterprise Risk Management
  • Internal Audit

Integrated Learning Matrix (ILM)

Key Activities:

  • HR Connect (PFM Skills Assessment Tool)
  • Public Sector Expert Practice

Committees (PSEPC)

  • Quality Council for Trades and

Occupations (QCTO)

  • ETD Programme Development (courses,

qualifications, learnerships, etc.)

  • Job standardisation
  • Professionalisation
  • Knowledge & Information Management
  • Learning Networks
  • Organisational Functional Structures
  • Change Management Programme
  • Monitoring & Evaluation
  • Integrated Strategic Support Plans

Generic Core and Behavioural Skills Dictionaries

Research

Educational Qualifications Matrix Training & Development Programme Matrix

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1

CHANGE MANAGEMENT

CHAMPIONS OF CHANGE A NEW CULTURE MOBILISE RESOURCES TO ACHIEVE CHANGE ACROSS INDIVIDUAL, ORGANISATIONAL, INSTITUTIONAL AND STAKEHOLDER DIMENSIONS

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1

MONITORING AND EVALUATION

Monitoring and evaluation measures the performance and impact of the strategy’s

  • implementation. It will serve as

an early warning system.

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1

STRATEGIC FOCUS AREAS

  • Develop a significant

number of champions

  • f change
  • Champions will lead

transformation in teams, groups and departments

  • They must own,

design, direct, implement and sustain change in their areas of influence

  • Champions will have

theoretical and practical PFM knowledge

  • Effective leadership

and management of people, change and

  • rganisational

development

  • Empower

management and leverage performance to achieve a constantly improving and learning

  • rganisation
  • Transform individuals,

teams and groups for “small-wins” to be replicated elsewhere

  • Create self-directing,

high-performing teams to propel change throughout organisation

  • A lifelong learning

process that develops competence, knowledge, understanding, attitudes, behaviours, and ethical standards

  • Develop PFM

management professionals to lead knowledge production, innovation, research and good practice

  • Professionalising

senior management will run alongside other processes to professionalise all government PFM

  • fficials
  • Identify root causes of

PFM capacity development challenges

  • Implement successful
  • rganisational

development solutions that are informed, strategic and sustainable

  • Diagnostic results will

provide a baseline to monitor and evaluate progress

  • Improve ability to

capture, share and diffuse knowledge to enhance performance

  • Leverage financial

management knowledge to improve service delivery

  • Create a national

knowledge and information management system to provide a centralised repository of all PFM- related knowledge

STRATEGIC FOCUS AREAS

CHAMPIONS OF CHANGE MANAGEMENT AND LEADERSHIP CAPABILITY GROUP/TEM LEVEL TRANSFORMATION PROFESSIONALISATION DIAGNOSIS KNOWLEDGE AND INFORMATION MANAGAMENT

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1

ENVIRONMENT

The strategy takes account of the broad external environment, including the international and domestic economic climate, political dispensation, social norms, technological developments and general legislative frameworks

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1

CAPACITY DEVELOPMENT STRATEGY

INSTITUTIONAL ORGANISATIONAL INDIVIDUAL STAKEHOLDER

CHAMPIONS OF CHANGE MANAGEMENT & LEADERSHIP CAPABILITY GROUP/TEAM TRANSFORMATION PROFESSIONALISATION DIAGNOSIS AS POWERFUL MECHANISM KNOWLEDGE & INFORMATION MANAGEMENT

CHANGE MANAGEMENT

ENABLING ENVIRONMENT ORGANISATIONAL CAPACITY COMPETENT & COMMITTED EMPLOYEES STAKEHOLDER RELATIONSHIPS

CAPACITY DEVELOPMENT PILLARS

MONITORING & EVALUATION STRATEGIC FOCUS AREAS

STRATEGIC OBJECTIVES

ENVIRONMENT

VISION

Achieve and sustain excellence in the management of public funds

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QUESTIONS AND ANSWERS: (Q&As)

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THANK YOU