Presentation to the Public Service and Administration Portfolio Committee on the appointment and utilisation of consultants

1
Presentation to the Public Service and
Administration Portfolio Committee on the
appointment and utilisation of consultants

• Report of the Auditor-General - RP122/2002
• 29 January 2003

2
Introduction

• Reports issued by the Office on the
  appointment and utilisation of consultants
• RP99/1996
• At certain departments of the Gauteng Provincial
  Administration - PR242/2001
• At certain departments of the KZN Provincial
  Administration - included in annual reports of
  departments
• At certain national departments and provincial
  administrations - RP122/2002

3
Purpose of the presentation

• To facilitate public accountability by bringing
  audit findings and corrective measures to the
  attention of Parliament
• To present outstanding issues and petition
  responsible role players to address these issues

4
Objectives of the audits

• To respond to a request by Cabinet in view of
  perceptions that the PS had become a major
  purchaser of consultancy services
• To follow up on the corrective measures
  implemented since the previous audit reported on
  in 1996

5
Focus areas

• The audits focused mainly on the following
  areas
• Appointment of consultants
• Control over and monitoring of the execution of
  the functions of consultants
• Responsibilities of departments and
  implementation of proposals by them

6
Appointment and use of consultants

• 1. Alternative ways of addressing needs, such as
  training, capacity building and recruitment, were
  not always considered.
• ? Filling of vacant posts, setting of
  productivity standards, networking, information
  sharing
• ?Management competencies
• ?Coordination initiatives
• ?Maintaining of a database of consultants used
• ?Accreditation of consultants and monitoring by
  National Treasury

7
Appointment and use of consultants

• 2. Sound procurement principles were not always
  applied.
• ?Strengthen existing guidelines and
  procurement procedures and determine national
  norms and standards
• ?National Treasury to provide guidance on supply
  chain management by 1 April 2003
• ?National Treasury and DPSA to coordinate
  national norms and standards

8
Appointment and use of consultants

• 3. Consultants without the required experience
  or competencies were appointed which resulted, in
  some instances, in staff having to assist
  consultants.
• ? Departments to consider impact of consultants
  on internal resources
• ? References of consultants to be followed up
• ? Consultants to provide proof of previous
  successes
• ? DPSA to introduce a code of conduct or
  accreditation system for consultants
• ? Departments to put into practice proper
  contract administration and quality assurance
  procedures before appointing consultants

9
Appointment and use of consultants

• 4. Terms of reference did not always provide for
  skills transfer and the transfer of skills and
  capacity building were not monitored closely.
• ? Provide opportunities to staff to learn from
  consultants by creating mixed teams
• ? DPSA and SAMDI to assist departments in
  following best practice frameworks for skills
  transfer
• ?Departments to identify skills to be transferred
• ?Quality of skills transfer and capacity building
  to be monitored

10
Appointment and use of consultants

• 5. Appointments were often of a virtually
  permanent nature or contract periods were
  continually extended, causing departments to
  become reliant on consultants.
• ? Vacancies to be filled and periods of
  appointment of consultants to be more defined
• ? Cost-effectiveness of appointments to be
  compared with that of filling of vacant posts
• ? DPSA to evaluate remuneration structures for
  positions in the PS
• 
  .. cont.

11
Appointment and use of consultants

• 5. Appointments were often of a virtually
  permanent nature or contract periods were
  continually extended, causing departments to
  become reliant on consultants.
• ?Departments to monitor vacancies on PERSAL
• ?Departments to use oversight reporting facility
  available on DPSA website
• ?DPSA guide on hourly fee rates for consultants
  to be used

12
Appointment and use of consultants

• 6. The lack of detailed tender specifications led
  to tenders being extended and, consequently, to
  non-compliance with the requirements of
  transparent, fair and competitive procurement.
• ? Departments to substantiate the need for
  appointing consultants with proof that it cannot
  be met internally
• ? Appropriate briefs regarding the nature,
  outcomes and time frames of products to be
  compiled
• ? TOR to serve as a guide to consultants
  regarding scope of work.
  cont.

13
Appointment and use of consultants

• 6. The lack of detailed tender specifications led
  to tenders being extended and, consequently, to
  non-compliance with the requirements of
  transparent, fair and competitive procurement.
• ?Departments to ensure proper job evaluation and
  effective management practices
• ?Procurement framework to be clear on detailed
  tender specifications

14
Monitoring and control of consultants

• 7. The performance, progress and impact on
  service delivery of the work of consultants were
  not always monitored.
• ? Management information to be provided for the
  assessment of the performance of consultants
• ? Regular evaluations to be done during and after
  assignments
• ? Consultants remuneration to be linked to
  performance
• ? Performance to be evaluated by independent
  internal auditors
  cont.

15
Monitoring and control of consultants

• 7. The performance, progress and impact on
  service delivery of the work of consultants were
  not always monitored.
• ?PSC to monitor information on consultants
  included in annual reports and to establish
  relevance and usefulness of information
• ?Management information available on oversight
  reporting facility to be used
• ?Guide on fee rates to be implemented
• ?Departments to ensure that contract management
  staff is competent and skilled

16
Involvement and responsibilities of departments

• 8. Departments did not create an environment in
  which consultants could perform their duties -
  causing delays.
• ? Departments to create supportive organisational
  climate
• ? Processes conducive to the achievement of the
  objective for which the consultant was appointed
  to be put in place
• ? Departments to plan properly before appointing
  consultants

17
Implementation of proposals

• 9. Proposals were not always implemented, due to
  inadequate human and financial resources, lack of
  commitment, lack of computer skills.
• ?Capacity to implement proposals to be assessed
  before tender specifications are finalised
• ?Management to accept ownership of business plan
  before the project starts
• ?Departments to assess the impact of the work of
  consultants

18
The way forward

• The majority of the key findings of the 1996
  special report have not been addressed.
• Consultants should be properly managed.
• The appointment of consultants should be
  considered in the strategic planning and
  budgeting phases.
• The framework for supply chain management to be
  compiled by NT should enhance the management of
  consultants.
• Departments/DPSA/NT should monitor the impact of
  the appointment of consultants in the public
  service on a continuous basis.