Presentation to the Portfolio Committee on the Appointment and Utilisation of Consultants Report of the Auditor-General dated August 2002

1
Presentation to the Portfolio Committee on the
Appointment and Utilisation of ConsultantsReport
of the Auditor-Generaldated August 2002

• 30 October 2002

2
Introduction

• Four main reports regarding consultants
• Performance audit of the acquisition and
  utilisation of consultancy services in the PS -
  June 1996
• Use of Consultants in the PS - June 2001 (Cabinet
  resolutions, progress with implementation)
• Performance audit Gauteng provincial
  administration - September 2001 (Presented at
  SCOPA Gauteng, workshop with Committee and HODs)
• Appointment and utilisation of consultants at
  certain national departments and provincial
  administrations - August 2002

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Purpose of Presentation

• Facilitate public accountability by bringing
  audit findings as well as suggested corrective
  measures to the attention of Parliament
• Indicate progress with corrective measures
  concerning consultants in the PS

4
Key Focus Areas

• Appointment and use of consultants
• Monitoring and control of performance
• Responsibilities of Departments and
  implementation
• Interventions implemented and envisaged by the
  DPSA

5
Appointment and use of consultantsConsider
alternatives

• Alternative ways of addressing needs such as
  training and capacity building not always
  considered -
• Consider filling of vacant posts, setting
  productivity standards for staff, networking,
  information sharing and work overtime

6
Appointment and use of consultantsProcurement

• Sound procurement principles not always applied -
  comparing tenders not only on the basis of price
  but also functionality, expertise and knowledge
  of tenderers
• Strengthening existing guidelines and procurement
  procedures for consultants and determining
  national norms and standards.

7
Appointment and use of consultantsCompetencies
of Consultants

• Appointed without required experience of
  competencies
• Competencies not evaluated before awarding tender
  
• Resulted in staff having to be withdrawn from
  their functions to assist the consultants

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Appointment and use of consultantsCompetencies
of Consultants

• Greater awareness of the internal cost of own
  staff's time in providing information and
  managing relationships
• References of consultants should be followed up
• Require consultants to provide proof of previous
  successes and the knowledge of consultants should
  be tested when tenders are evaluated
• The DPSA should consider introducing a code of
  conduct or system of accreditation

9
Appointment and use of consultantsTransfer of
skills

• Contracts and TORs do not always provide for
  skills transfer
• Capacity building not closely monitored
• Provide opportunities for staff to learn from
  consultants by creating mixed teams
• Consider how the DPSA and the SAMDI could assist
  departments to follow best practice frameworks
  for skills transfer

10
Appointment and use of consultantsAppointment
permanent basis

• Appointed on a permanent basis or contract
  periods were continually extended
• This often resulted in the approved establishment
  being extended and departments becoming reliant
  on consultants to perform certain primary
  functions

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Appointment and use of consultantsAppointment
permanent basis

• Vacancies must be filled as soon as possible
• The duration of the appointment of consultant
  must be limited to a reasonable period to ensure
  that the position is filled
• Consider cost-effectiveness of the appointment of
  consultants compared to the filling of vacant
  posts
• The DPSA should evaluate remuneration structures
  for positions in the public service in terms of
  similar job descriptions and remuneration
  structures in the private sector

12
Appointment and use of consultantsUnclear need
of appointment

• Lack of detailed specification of -
• the services required
• available resources
• intended outcomes or product
• required expertise
• timetable for completion
• long-term implications and risks
• Tenders was extended thus not complying with the
  requirements of transparent, fair and competitive
  procurement

13
Appointment and use of consultants Unclear need
of appointment

• Rigorous assessment of the need to appoint
  consultants with prove of not meeting challenges
  internally
• Prospective tenders are appropriately briefed and
  the nature, outcomes, responsibilities and time
  frame of the work is clear
• Provide TORs that serve as a guide to
  consultants regarding the size and scope of the
  work.

14
Performance Monitoring and Control

• Poor monitoring and verification of
• consultants performance
• progress with projects
• extent to which set objectives were achieved
  before payments are made
• Thus the impact of the work of consultants on
  service delivery were not evaluated

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Performance Monitoring and Control

• Undertake more regular evaluations while an
  assignment is in progress and when it has been
  completed
• Link consultants remuneration to achieved
  performance
• Evaluate performance by independent internal
  auditors
• Disseminate and implement lessons learned from
  evaluations.

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Responsibilities of and Implementation by
Departments

• Departments did not create an environment where
  consultants could perform their duties
  effectively
• Interventions proposed were not always
  implemented due to -
• inadequate human or financial resources
• a lack of commitment
• lack of computer skills

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Responsibilities of and Implementation by
Departments

• Create organisational climate and put processes
  in place that are supportive to achieving the
  objective for which the consultant was appointed
• Assess capacity to absorb outside assistance and
  implement proposals before tender specifications
  are finalised
• Management should accept ownership of the
  business plan before the project starts

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Interventions implemented and envisaged by the
DPSA

• Conducted research on the use of consultants in
  the Public Service - Report published and
  presented to Cabinet
• The findings of the research are similar to those
  made by the AG in this and previous performance
  reports
• Departments were informed to have approved
  guidelines on the use and management of
  consultants with due consideration to specific
  issues raised in the Report (compliance audit by
  sampling 10 Departments)

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Interventions implemented and envisaged by the
DPSA

• Amending the Public Service Regulations to (June
  2002) to provide for -
• A definition of a consultant
• Departments to report in their annual reports on
  the use of consultants
• The MPSA to determine the format for reporting in
  annual reports
• The MPSA approved the format in which departments
  must report in their annual reports, namely -
• Report and analysis of consultant appointments
  using appropriated funds and donor funds,
  including historically disadvantaged individuals

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Interventions implemented and envisaged by the
DPSA

• Provided substantive inputs into the draft
  National Treasury procurement framework, which
  will include procedures for the appointment and
  management of consultants
• Finalising a Guide on hourly fee rates for
  consultants based on PS remuneration levels
• Finalising a data base of 2113 consultant reports
  produced for the Public Service that will be made
  available to Departments

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Summary

• The DPSA is continuing to work with the Office
  of the AG and the National Treasury in order to
  promote the efficient and effective use of
  consultants in the Public Service in support of
  service delivery to our citizens