Republic of Uganda MINISTRY OF PUBLIC SERVICE VOTE 005 MINISTERIAL POLICY STATEMENT FOR FY 2019/20 MARCH 2019 Contents Foreword ................................................................................................................................................. i Abbreviations and Acronyms ................................................................................................................. v Structure of the Policy Statement ........................................................................................................... ix Executive Summary ............................................................................................................................... x Status of Implementation of Recommendations of Parliamentary Committee on Public Service and Local Government on the Policy Statement for FY 2018/19 ............................................................... xxv Gender and Equity Concerns ............................................................................................................. xviii Vote Overview …………………………………………………………………………………………... 1 Recruitment Plan for the FY 2019/20 ……………………………………………………………..…… 10 Approved Macro Staff Structure ………………………………….……………………………….….... 13 Vote Staff List as at 28th February 2019…………………………………….………………….…….... 15 Vote Pension List for the FY 2019/20…………………………………………………….…….……… 23 Annual Work Plan ………………………………………………………………….……………..….… 31 Quarterly Work Plan………………………………………………………………...…………………...56 Draft Budget Estimates for the FY 2019/20…………………………….…………………………….... 94 Annual Cash Flow Plan………………………………………………………………………..……….111 Procurement Plan…………………………………………………………………………………….…112 Vehicle Utilization Report……………………………………………………………….………….… 123 Ministry of Public Service Ministerial Policy Statement FY 2019/20 MPS: Ministry of Public Service FOREWORD Rt. Hon. Speaker, I have the honour to present to Parliament the Ministerial Policy Statement for Vote 005: Ministry of Public Service for FY 2019/20. The Policy Statement is aligned to the National Vision 2040, the National Development Plan(NDPII), the NRM Manifesto, the Public Sector Management Sector Strategic Plan and the Ministry of Public Service Five -Year Strategic Plan 2015/16- 2019/20. Rt. Hon. Speaker, this Ministerial Policy Statement has been prepared in compliance with Section 13(13) of the Public Finance and Management Act, 2015 (as amended). It presents among others the key achievements for FY 2018/19, and the planned outputs for FY 2019/20. Rt. Hon. Speaker, for the FY 2018/19, Parliament approved a total budget of Shs.31.241Bn comprising of Shs 5.231 Bn for wage, Shs. 19.831Bn for Non-wage, Shs. 0.266Bn for Arrears, Shs. 1 Bn for Non-Tax Revenue and Shs. 4.913Bn for Development.By 31st December 2018, Shs18.405Bn of GoU funding had been released representing 58.9% of the Approved Budget. Out of the total releases, Shs. 12.655 Bn had been spent representing 68.8% absorption rate. Rt. Hon. Speaker, the Policy Statement for the FY 2018/19, was anchored on six priority areas and below are highlights of the key achievements registered in accordance with the priorities as at 31st December 2018. Improving efficiency in payroll processing through upgrade of Integrated Personnel and Payroll System (IPPS) and integration with other existing Government Systems Rt. Hon. Speaker, in order to address the challenge of lack of seamless interface of the payroll management system with other systems,the Ministry planned to upgrade Integrated Personnel and Payroll System (IPPS) with such systems. As at the end of Second Quarter, the design test for interfacing IPPS with ProgrammeBudgeting System (PBS) was completed, web-service interface tested and data exchange confirmed in test environment. Improving efficiency of the performance management framework of the public service; Rt. Hon. Speaker, in line with the above priority, the Ministry planned to conduct Refresher training in performance management, review the performance assessment tool and link it to balance score card and review the rewards and sanctions framework. As at end of second quarter, refresher training was carried out in 29 Ministries, Departments Local Governments against a target of 44 representing 66% covering a total of 380 staff; Draft Tier 1 Balanced Score Card tool for Ministry of Public service was developed and review of the Revised Rewards and Sanctions Framework was finalized. i Ministry of Public Service Ministerial Policy Statement FY 2019/20 MPS: Ministry of Public Service Promoting integrated Service delivery model in MDAs and LGs Rt. Hon. Speaker, under the current Government set up, most Ministries are situated within the city center. As such, citizens can only access services of Central Ministries at the respective headquarters which is costly in terms of time and cost. Therefore, under the integrated service delivery model, Service Uganda Centers or One Stop Shop Centers are to be established at regional level where Central Government Ministries will set up customer service desks. In this Financial Year, the Ministry planned to establish two centers in Mbale and Kasese Municipal Councils. At the time of review, space for the two proposed Regional Service Uganda Centers was offered by the respective Municipal Councils and Schematic designs had been developed by Ministry of Works. Restructuring of Health Centers Rt. Hon. Speaker, the Ministry planned to restructure 100 HC IVs, 125 HC IIIs and 1,000 HC IIs. During the period under review, Pre-restructuring Assessment was undertaken in 100 HC IVs and 125 HC IIIs. Documentation of Sector Service delivery standards (Social Development, Works and Transport, Agriculture and Water and Environment Sectors) and ensuring adequate integration of Gender and Equity, Environment and HIV/AIDS concerns Rt. Hon. Speaker, the Ministry planned to support Four Sectors to document a compendium of service delivery standards. By end of Second Quarter, two Sectors (Water and Environment and Works and Transport) had been supported. Finalizing the legal and regulatory framework for the proposed Public Service Pension fund Rt. Hon. Speaker, the Ministry commenced development of the legal and regulatory framework for the proposed reform in the FY 2017/18. As at 31st December 2018, the Final Draft of the PSPF Bill, 2018 was produced and Stakeholder consultations on the Bill were undertaken in Local Governments and referral hospitals. Rt. Hon. Speaker, establishing a contributory pension scheme for the Public Service was identified as one of the key priority of Government in FY 2019/20 as it is expected to resolve the problem of citizens taking long and dying without receiving their money as it is unfunded and relies wholly on Government financing. The scheme is continuously accumulating pension and gratuity arrears due to its design, governance and accountability problems. The reform is expected to resolve among others problems of sustainability, affordability, governance, accountability and delays in payment of the benefits. In addition, the scheme is further expected ii Ministry of Public Service Ministerial Policy Statement FY 2019/20 MPS: Ministry of Public Service to grow the Capital Markets and reduce the cost of borrowing and increase saving to GDP ratio of the Country. In the First five (5) years of implementation, the scheme is projected to accumulate 1.4 trillion in contribution alone. In order to establish the Scheme in FY 2020/21, only UGX 9,367,500,000 is required in FY 2019/20 to undertake pre-reform activities such as finalization of the Bills, Regulations, Institutional and Governance arrangements as well as Capacity Building, this has remained unfunded in FY 2019/20 meaning the contributory pension scheme cannot be set up even in FY 2021/22. This is likely to escalate the current problems of the unsustainable Pension and gratuity Bills, delayed payments, accumulation of arrears among others. Implementation of the Pay Policy Rt. Hon. Speaker, my Ministry developed pay principles and targets to be implemented over a period of 5 years starting with FY 2018/19. Cabinet approved the pay targets under Minute No. 502 of CT 2017 and 509 of (CT 2017). Cabinet further guided that implementation of the approved pay targets was to be phased. The approval by Cabinet both on the targets and mode of implementation was communicated to the representatives of the Public Service Labour Unions on the Public Service Negotiating and Consultative Council and this averted the industrial action which should have taken effect on 23rd June 2018. The second phase of implementation was scheduled for FY 2019/20 and my Ministry has been engaging the Ministry of Finance, Planning and Economic Development throughout the budgeting process with a view of obtaining budget allocation for financing pay enhancement in FY 2019/20. My Ministry went ahead and prepared two scenarios for enhancement taking to account the available resource envelop. These scenarios which have been summarized and annexed include:- 1. A Proposal for enhancement by 25% of the approved five year pay target which will require additional UGX. 104.9Bn inclusive of the requirements under the Administration of Justice Bill; OR 2. A Proposal for enhancement by 30% of the approved five year pay target which will require additional UGX. 279.2Bn inclusive of the requirements under the Administration of Justice Bill. Rt. Hon. Speaker, despite the above efforts, pay enhancement under phase II has remained unfinanced. The Ministry has already