Committee Reports > List of Committees > Dáil > 1985 > Committee on Public Expenditure > Report - Review of Department of the Public Service

APPENDIX II

REPLY TO LETTER DATED 25 JANUARY 1984 FROM THE DAIL COMMITTEE ON PUBLIC EXPENDITURE

Scope of Programmes Administered

1.1.The “Tentative Programme Listing” contained in the book entitled “Comprehensive Public Expenditure Programmes” is intended to identify major items of public expenditure. The total estimate for the Department of the Public Service for 1984 is £8.5m of which 64% is staff costs. It seems, therefore, that this Department would feature in Programme 1, mainly, and possibly also in Programme 7 of the tentative listing. However, since no breakdown of these programmes is available it is not possible to comment in any definitive way.

As a central Department, the Department of the Public Service is concerned with policies and programmes whose impact is much wider than the Department’s own budget would indicate. (A copy of the Department’s organisation chart, attached as Appendix 1, illustrates this point.) As far as expenditure is concerned, this arises particularly in the areas of public service numbers and pay, where the Department plays a central role in regard to the Exchequer pay and pensions bill of £2376m in 1984 and indeed in regard to the wider public sector. The tentative programme listing, however, spreads these costs across the various programmes rather than identifying the management of the pay bill as a programme in itself.

This Department, accordingly, must take a different approach from the one suggested in order to respond to the Committee’s questions.

Policy Formulation

2.1.A statement of the overall aims and objectives of the Department with a list of the programmes serving each objective is attached (Appendix 2). These programmes in turn have specific objectives and targets. Statements showing the objectives and targets of a sample of programmes are included in Appendix 2.

2.2.In recent months, a system of more accountable management has been in process of development within the Department. The system was partially developed when the Committee’s questionnaire was received and is being further developed as a matter of priority. That is the system described here. The focal point for planning the implementation of programmes is the management committee of the Department which comprises the Secretary, Deputy Secretaries and Assistant Secretaries and which meets on a weekly basis. Subject to the Minister’s overall role the committee recommends or decides on priorities, allocates resources and monitors progress in relation to each programme within the overall framework of the aim and objectives. The periods covered by plans and the extent to which they are formalised and quantified will vary according to the needs of each programme. However, the planning process in the Department is largely based on identifying specific targets within each programme for the year ahead. Monitoring is again dependent on the needs of the particular programmes and will vary from weekly to quarterly or less frequent reviews of progress. Where appropriate, special meetings of all staff, from the Secretary down, engaged in particular programmes are held to review programme achievement and chart a course for the future. The major resource allocation issue for this Department is the allocation of staff to the various programmes, since the Department is not a large spender on the non-pay or capital sides. The main factors/ criteria used in staff allocation planning for the various programmes are priorities having regard to overall Governmental, ministerial and departmental needs and demands placed upon the Department for services by other Departments and public service agencies. Need is assessed having regard to these factors under the overall guidance of the management committee.

Some samples of the documentation submitted to the management committee are enclosed. It should be noted that these are internal planning and control documents (Appendix 3).

2.3.The question of assessing capital projects does not arise in this Department. Perhaps the most closely related activity of the Department is in relation to the expenditure of Departments on data processing equipment. Here the DPS has issued guidelines to assist Departments in assessing their computer needs and in evaluating and selecting hardware and software.

3.Management and Operational Control

As indicated at 1.1 above, the tentative programme listing does not lead to a detailed breakdown of this Department’s work. Instead, a statement of the Department’s aims, objectives and programmes is attached. To respond to each question in relation to each of these individual programmes, would, however, require a very lengthy reply. The approach adopted, therefore, is to reply to each question through taking sample programmes. Otherwise the reply would have to go to a level of detail which does not seem to be intended by the committee.

3.1.It will be seen from the attached statement of aims, objectives and programmes (Appendix 2) that each programme has specific objectives and targets (usually for a one-year period). Where possible, the objectives are stated in terms which allow the measurement of performance against targets.

3.2.Because of the nature of work in this Department targets/ objectives tend to be set in non-financial terms. Where applicable, however, cost measures are used, for example, in computerisation projects, management services projects and training.

3.3.Internal budgetary control is operated mainly through the Personnel Section of the Department (the actual accounts work for the Department is handled by the Accounts Branch of the Department of Finance) Where, however, expenditure is self-contained (i.e. particular to one section of the Department) control is operated through that section; for example, Management Services Section controls expenditure on consultancy. Irrespective of which section is coordinating, the control is on a monthly basis and variations from budget are reported to the management committee which takes remedial action if necessary.

3.4.The management system in the Department operates as already stated with the management committee as its focal point. Subject to ministerial approval, responsibility for the achievement of aims and objectives at overall Departmental level rests with this committee. Particular programmes for the achievement of overall objectives are assigned at Assistant Secretary level, with two Deputy Secretaries co-ordinating two major areas, the remainder being co-ordinated by the Secretary. Where appropriate, these programmes in turn are broken down with specific targets being set at Principal level. The Principals are responsible to their Assistant Secretaries and to the Management Committee for the achievement of targets as agreed.

3.5.Changes in workload are reflected in staff resource planning through the management committee. Resource planning is normally part of the budgetary and estimates cycle during which demands for staff are measured against priorities for the period ahead. Should workloads change during any one-year period the management committee will decide on how best to redeploy staff or reallocate work to meet such changes whether on a temporary or long-term basis. The Secretary, to whom the Personnel and Organisation Unit reports directly, keeps staffing continuously under review.

3.6.This Department has a particular difficulty with performance measures for some of its programmes (e.g. in relation to pay and industrial relations). Performance measures are more easily developed where they can be stated in terms of cost, time or quantity and where this is feasible such measures are used

EXAMPLES

man-course days - CSTC

changes in numbers - Vote Sections etc.

However, much of the work of this Department is concerned with developing both organisations and people to operate efficiently and effectively. In this area, concrete measures are hard to identify and most of those that can be defined are qualitative rather than quantitative - a difficulty which has been identified, though not resolved, world-wide. Subject to that reservation the use of measuremnt information and feedback on actual performance has led to improvements in service in certain areas.

3.7.The impact of this Department’s programmes on the public is, in general, indirect, in the sense that its aims and objectives are often concerned with improving the service given by other Departments and agencies to the public. In this respect, feedback from the public is actively encouraged. For example, it is proposed to issue a White Paper on Public Service Development in the near future and advertisements were placed in the national newspapers and magazines requesting submissions from the public. In addition, the programme being implemented for improving service to the public at direct points of contact includes an element for customer feed-back. The DPS is also pursuing the objective of improving the perception of the service by the general public.

3.8.Many of the reservations expressed at 3.6. above refer to this section also. Examples have been given in 3.6. of the performance criteria used which are expressed as far as possible in terms of efficiency and economy. In this regard, standards are set and compared to actual performance.

3.9.The system of management described above is seen as the method by which line managers are encouraged to improve efficiency. It will hold managers responsible for the achievement of targets with a given allocation of resources and for their results and the usage of resources. Results are difficult to measure in quantitative terms but the system is designed to bring about a more cost-conscious and results-conscious method of operation at individual manager level.

3.10.The figures required are shown in the following table Copies of the Estimates for these years are at Appendix 4

3.11.The general system in operation and the factors/criteria which affect resource allocation are outlined above. It should also be pointed out here that a large part of the work of this Department falls into the reactive category which makes the process of estimating very difficult. This high level of reactive work makes the use of techniques such as those described difficult to operate. However, where possible a multi-annual view is taken of programmes before specific targets and estimates are settled on a one year basis.

Performance Trends 1973-1983

4.1.Again the programme listing along the lines indicated is not directly relevant to all our programmes. The approach adopted, therefore, is to give some examples.

Programme Volume Statistics

4.2.Staff numbers in Department

Staff Nos. in DPS excluding CDPS

Staff numbers in CDPS

4.3.Analysis of Department’s Budget.

Note: In 1973 the DPS budget was incorporated in that of the Department of Finance.

TABLE

4.4.In conventional terms, it is difficult to answer the question, because most of our services are provided to other Government Departments and they do not have to pay for them. However where comparisons with providing these services from the private sector, for example, can be made we can show these.

4.5To the extent that the services of the DPS help to provide a more cost-effective public service they are essential and good value for money. For instance, our Vote Sections, with a staff of 10, achieved an overall reduction of 2,100 in the gross staffing of the civil service in course of the present embargo on posts. Following increases in certain areas the net reduction was 1600 posts.

GENERAL

5.1.Matters concerning any issues arising from reports by the Comptroller and Auditor General are dealt with by the Accounting Officer through the Public Accounts Committee, if necessary. This has not arisen to any significant extent in recent years.

5.2.It is difficult to make total comparisons between the Department and its counterparts in other administrations, because the management of the public service depends to such an extent on the political, legal and social framework. The power of such Departments vary with the administrative systems in the different countries but in a number of instances corresponding Departments exercise greater power in specific areas particularly in relation to the promotion of efficiency and good personnel practice. However, regular contacts through the EEC Committee of Heads of Public Service Departments, the International Institute of Administrative Sciences, the OECD and directly with the UK Management and Personnel Office, the US Office of Personnel Management and other administrations indicate that most public service Departments share the problems and concerns of the DPS. Our international contacts have not given us any reason to believe that the Irish Public Service is significantly behind foreign public services in terms of efficiency or effectiveness but tended to confirm our view that there is scope in all public services for considerable improvement.

* Estimated out-turn.