Department of Public Expenditure and Reform Annual Report 2019

Contents

Executive Summary i

1 Managing Public Expenditure Better 1

1.1. Managing the Estimates Process 1

1.2. Management of Voted Expenditure 2

1.3. Capital Expenditure Management 3

1.4. Irish Government Economic and Evaluation Service 4

1.5. Government Accounting 5

2 Brexit and International Cooperation 6

2.1. Brexit 6

2.2. EU Matters 6

2.3. North South Cooperation 6

2.4. EU Structural Funds Programmes 6

2.5. European Structural and Investment Funds (ESIF) Policy 8

3 Public Service Pay, Pensions and Industrial Relations 9

3.1. Public Service Stability Agreement 2018-2020 9

3.2. Public Service Pay Commission (PSPC) 9

3.3. Industrial Relations 10

3.4. Single Public Service Pension Scheme 10

3.5. Other Pay and Pensions matters 11

4 Civil Service Renewal 12

4.1. Civil Service Renewal Plan 12

4.2. People Strategy for the Civil Service 2017-2020 14

4.3. Public Service Sick Leave 17

5 Public Service Reform 18

5.1. Our Public Service 2020 18

5.2. Openness, Transparency and Accountability 20

5.3. Legislative and Public Governance Measures 21

6 Digital Government 23

6.1. Office of the Government Chief Information Officer (OGCIO) 23

6.2. Public Service ICT Strategy Key Achievements 2019 23

6.2.1. Build to Share 24

6.2.2. Digital First 25

6.2.3. Data as an Enabler 25

6.2.4. Improve Governance 25

6.2.5. Increased Capability 26

6.3. eGovernment Strategy 2017-2020 26

6.4. Public Service Data Strategy 2019-2023 26

6.5. Engaging at EU and International Level 27

6.6. GovTech 27

7 Public Procurement 28

7.1. Public Procurement Reform 28

7.2. Strategic Public Procurement 28

7.3. Public Service Procurement Frameworks 29

7.4. Construction Procurement 29

7.5. Engagement with Stakeholders 30

7.6. Public Service Spend and Tendering Analysis Report 31

7.7. Increased use of Digital Technology 31

7.8. Supporting OGP Staff 32

8 Supporting Our Staff to Achieve Their Mission 33

8.1. People@PER Strategy 33

8.2. HR Business Partnering 33

8.3. HR Operations 34

8.4. Organisational Development 34

8.5. Corporate Management 34

8.6. Internal and EU Audit 35

8.7. Office of the Chief Medical Officer (CMO) 36

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Executive Summary

About this Annual Report The Mission of the Department of Public Expenditure and Reform is to serve the public interest by supporting the delivery of well-managed, well-targeted and sustainable public spending through modernised, effective and accountable public services. In support of this mission, the Department pursues two strategic goals:

To manage public expenditure at sustainable levels in a planned, rational and balanced manner in support of Ireland’s economic development and social progress; and

To have public management and governance structures that are effective and responsive to the citizen, transparent and accountable, and which thereby improve the effectiveness of public expenditure.

Throughout 2019, the staff of the Department worked collaboratively on a whole range of policies, projects and initiatives to deliver on these goals. Due to the Covid-19 public health emergency, the strategic context for the Department’s work changed enormously between the end of 2019 and the publication of this Annual Report in mid-2020. This has led to major changes in the Department’s work and the landscape for managing public expenditure and leading Public Service Reform is now very different. However, it is still important to look back on 2019 to capture the key developments and achievements in this regard during that period and this is the focus of this Annual Report. Managing Public Expenditure In 2019, Ireland continued to operate under the preventive arm of the Stability and Growth Pact. In June, along with the Department of Finance, the Department hosted the fifth annual National Economic Dialogue, providing an opportunity for stakeholders to come together to exchange views, in advance of the Budget, on the social and economic priorities facing the Government in the context of macro-economic and fiscal parameters. In the same month, the Summer Economic Statement was published, also in conjunction with the Department of Finance. The following month saw the publication of the Mid-Year Expenditure Report. These reports provide a starting point for budget deliberations by the Oireachtas and set out baseline expenditure ceilings over the medium term. The Department continued its Spending Review process which covers the totality of Government spending over a three year period to 2019. Approximately 81 papers have been published to date, which have contributed to a robust evidence base to inform policy making in the short and medium term. A new three-year round of Spending Reviews will commence in 2020, continuing the process of subjecting programmes to critical assessment on a rolling basis, placing evidence at the heart of policy making and informing the Estimates discussions with Departments. The Department published the Expenditure Report 2020 on Budget Day (8 October). The Department oversaw gross current expenditure by Departments of just over €60 billion in 2019, representing a year-on-year increase of almost €3 billion or 5.2% over the 2018 outturn, reflecting the Government’s commitment to the provision of efficient and effective public services. The Department broadly managed Voted expenditure in line with the amount set out in the Expenditure Report 2019, as well as progressing the Performance Budgeting and Equality Budgeting initiatives.

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The Department oversaw gross capital expenditure by Departments of €7.2 billion in 2019, representing a year-on-year increase in capital investment of €1.2 billion, or 20%, over the 2018 outturn of €6.0 billion, reflecting the Government’s commitment to increase capital expenditure in line with the National Development Plan. Project Ireland 2040 - A number of key outputs supported the implementation of PI2040 in 2019, including publication of Build 2019 – Construction Sector Performance and Prospects, Prospects - Ireland’s Pipeline of Major Infrastructure Projects, the first Annual Report setting out progress to date in delivery, an updated Public Spending Code to strengthen the guidance for public investment, and the Myprojectireland mapping tool, alongside an updated and expanded Investment Tracker. Brexit and International Co-operation The Department continued to prepare for Brexit in all scenarios and to address the issues that have arisen for the range of policy areas for which it is responsible, as well as the impact of Brexit on the wider economy. In addition, it focussed on broader developments at an EU level and also internationally, in preparation for forthcoming discussions on the future of Europe. Brexit and EU developments will continue to be a key priority for the Department. Cohesion Policy and Structural Funds The Department continued to oversee the management of the 2014-2020 EU Structural Funds Programmes (ERDF receipts in aggregate to date is €157.5 million). Negotiations at Working Party and Ministerial level for the 2021-2027 programming period have been ongoing since the European Commission published its post 2020 Cohesion Policy legislative proposals in May 2018. In the period since, the Council’s position on the overall package has been agreed and negotiations are progressing with the European Parliament with a view to having these completed in advance of the start of the next programming period. The Department commenced formal engagement in relation to the development of the 2021-2027 Partnership Agreement and the ERDF Operational Programmes during 2019. The Department also commenced planning for the new North South PEACE PLUS programme which will succeed the current cross border PEACE and INTERREG programmes for the 2021-2027 period. Public Service Pay, Pensions and Industrial Relations, The Department had a key role in managing a number of significant industrial relations challenges in the Public Service over 2019, while ensuring that the public service pay and pensions bill continued to be managed in a sustainable way within the framework of the Public Service Stability Agreement 2018-2020. The Public Service Pay Commission (PSPC) published its third report in May 2019, which related to recruitment and retention in the Defence Forces. The Commission’s fourth and final report was published in October 2019. It dealt with specialist grades in the public service, senior posts and certain public service health professionals. The Department continued its focused efforts to address implementation by relevant authorities of the Single Public Service Pension Scheme and to develop a long-term administrative solution. Civil Service Renewal The Department continued to co-ordinate the implementation of the Civil Service Renewal Programme, which is overseen by the Civil Service Management Board. Details of the

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progress made in delivering renewal projects which the Department has direct responsibility for are set out in the main body of this Report. The fourth progress report on the Civil Service Renewal Plan was published in May 2019 setting out the high level progress achieved in all of the actions in the plan since implementation began. Civil Service People Strategy In line with the Civil Service Renewal Plan, the Department, in collaboration with the wider Civil Service HR Community, continued to implement the People Strategy for the Civil Service 2017-2020 over the course of 2019. The Strategy seeks to support the delivery of a more effective and quality public services to the State and its citizens by positioning HR as a strategic driver to enable the delivery of three priorities: Be an Employer of Choice; Build the Workforce of the Future; and Build, Support and Value Managers as People Developers.

Public Service Reform Our Public Service 2020, which is operational since 2018, focuses on supporting sustainable, continuous progress to build a stronger Public Service and to deliver better quality services

and outcomes for the public. It advocates innovation, and working better across the whole of Government, with a strong emphasis on measuring the outcomes of reform. During the year, the Department continued to guide the OPS 2020 process, as well as monitoring the implementation of actions and identifying appropriate indicators to measure successful implementation. It also continued its programme of reforms aimed at delivering open, accountable and ethical government: The Data Sharing and Governance Act was signed into law in March 2019 and the second statutory review of the Regulation of Lobbying Act 2015 was completed in December 2019 and published in early 2020. Implementation of the Open Data initiative continued, as well as the ongoing provision of support and advice in relation to the implementation of the Freedom of Information legislation to citizens as well as up to 600 public service bodies. Engagement was undertaken on the process for creating and implementing a follow up to the Open Government Partnership National Action Plan 2016-2018 Digital Government The Office of the Government Chief Information Officer (OGCIO), working with Government Departments and agencies across the Public Service, continued to drive the digital transformation agenda across the Civil and Public Service. OGCIO also continued to engage with the EU and OECD on a range of initiatives. Achievements in 2019 included: progressing the 18-Step Action Plan to implement the Public Service ICT Strategy and in particular the expansion of the Build to Share (BTS) suite of services, including on-boarding new organisations to the Managed Desktop service and continuing the roll-out and development of the Applications suite and of Government Networks services nationwide; progressing the gov.ie portal, into which all Government Department websites are being migrated, and the private Government Cloud solution; and advancing the Public Service Data Centre. The OGCIO also took forward the implementation of the eGovernment Strategy 2017-2020 and the Public Service Data Strategy 2019-2023 and supported the Oireachtas in its consideration and passing of the Data Sharing and Governance Act. It advanced the ICT HR Professionalisation Strategy, in particular undertaking the pilot Apprentice ICT Specialist programme; worked to increase the uptake of MyGovID by government agencies; and worked with the Digital Marketing Masters programme in Trinity College Dublin to assess customer experience of digital government services. It had ongoing engagement with

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multilateral institutions, including the OECD and EU on the Single Digital Gateway Regulation and participated at policy and technical groups for eIDAS and the European Blockchain Partnership. Public Procurement The Office of Government Procurement (OGP) leads the implementation of the Public Procurement Reform Programme, bringing increased levels of collaboration and consistency to public service procurement. In 2019, OGP Sourcing teams completed 1,004 competitions with a total estimated spend of €4,516 million (including an arrangement for electricity with an estimated spend of €3 billion over the life of the framework). It established a total of 23 additional framework agreements, 17 discrete contracts and more than 964 competitions from framework agreements to assist public sector bodies in securing goods and services. OGP now has in excess of 120 active framework agreements. OGP arrangements provide critical support in the delivery of services to the citizen and new contracts this year include ambulances, electricity for street lighting and a national framework for asbestos surveying that will be accessed by the HSE, OPW and local authorities. The OGP commenced consultations on the merits of establishing a procurement ombudsman and on the implementation and refinement of the reform programme. It published updated guidance and information notes to facilitate the professionalisation of public procurement. A review of the policies and practices for the procurement of public works projects was launched in March and a Position Paper on Consultancy Engagement was published in May as part of the development of the next generation of the Capital Works Management Framework (CWMF). The Government Construction Contracts Committee (GCCC) met 8 times in 2019. In 2019, the OGP won a Facilities Management Award for its work with An Garda Síochána. The OGP was also shortlisted for the CIPD Ireland HR Awards for best employee engagement initiative and for best HR team, to be awarded in 2020. Supporting our Staff to Achieve Their Mission The Department’s HR Strategy Unit continued to roll-out and deliver the Department’s People@PER Strategy, as well as providing a wide range of HR services to the Department’s staff. It managed a substantial level of staff turnover and continued to provide a wide range of training and development opportunities to staff. Throughout 2019, the Corporate Office provided corporate support to the Secretary General and the Department more generally, and coordinated the development of Department’s Business Plan for 2019 and 2020 and the Annual Report 2018 as well as the Department’s approach to governance, knowledge management, risk management and compliance. It supported the Governance Committee and the Management Board in their ongoing work to monitor and enhance best practice governance procedures in the Department. The Finance Unit continued to enhance financial management in the Department. The Internal and EU Audit Unit provided an internal audit service to the Department of Public Expenditure and Reform and the Department of Finance and to implement its Internal Audit Strategic Plan 2016-19. The Minister’s Office provided executive support to the Minister for Finance and Public Expenditure and Reform. The Press Office continued to represent the vision, mission

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statement, values and work of the Minister in order to communicate in a strategic and effective manner with relevant stakeholders. The Secretary General’s Office played a key role in terms of providing support to the Secretary General in the context of his responsibilities under the Public Service Management Act, 1997. Office of the Chief Medical Officer (CMO) The CMO delivered an efficient and cost effective occupational health service, as well as policy advice on occupational health matters in respect of a Civil and Public Service workforce of approximately 42,000 during 2019. New areas of work included audiogram hearing and silica dust exposure checks for OPW industrial workers and immunisations for immigration officers. The CMO was awarded Safe, Effective, Quality Occupational Health Service (SEQOHS) accreditation in June 2019, which ensures it is a modern and efficient service which operates in line with best international occupational health practice.

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1 Managing Public Expenditure Better

1.1. Managing the Estimates Process

In October, the Department published Expenditure Report 2020. This set out the detailed budget measures for 2020, along with medium-term Ministerial expenditure ceilings out to 2022. This was followed in December by the publication of the 2020 Revised Estimates Volume (REV), which sets out detailed expenditure allocations for 2020 at a programme level. This includes performance information for each Vote, setting out the key services and activities funded by public resources and high level measures of the context and impact indicators related to these services and activities. The 2020 REV also includes performance information related to the Equality Budgeting Initiative and details on climate related expenditure across Government Departments. The following key initiatives were progressed:

Budgetary Reform: In June, the Department, along with the Department of Finance, jointly published the Summer Economic Statement 2019. This set out the broad parameters for macroeconomic and fiscal growth and constraints over the medium term and facilitated discussion about fiscal options and priorities in advance of the October Budget and Estimates. In the same month, the Department, in collaboration with the Department of Finance, hosted the National Economic Dialogue in Dublin Castle. Now in its fifth year, this event allows for a diverse array of stakeholders to come together for an open and inclusive exchange on the social and economic priorities facing the Government, in the context of macro-economic and fiscal parameters. The theme of the event for 2019 was ‘Building on Progress at a Time of Change’. Discussions covered topics such as sustainable economic growth, future jobs, housing supply and climate action. The papers produced by the Department to guide these sessions are on the Budget website.

As part of the whole-of-year budgetary process, the 2019 Mid-Year Expenditure Report (MYER) was published in July. This set out the opening position and high-level parameters for the forthcoming Budget and details estimated gross voted expenditure amounts on an aggregate and Ministerial basis over a three year period. This year the MYER set out two possible expenditure strategies, one based on a no-deal Brexit scenario and one based on an orderly Brexit.

In 2017, the Department initiated the first in a series of rolling, selective Spending Reviews, which cover the totality of Government spending over a three year period to 2019. Approximately 81 papers have been published to date. A new three-year round of Spending Reviews will commence in 2020, continuing the process of subjecting expenditure programmes to critical assessment on a rolling basis, placing evidence at the heart of policy making and informing the Estimates discussions with Departments.

Work to further embed the Performance Budgeting Initiative in resource allocation and decision making continued in 2019. In that context, the third Public Service Performance Report was published in May. This report aims to enhance the focus on performance and delivery by providing timely and relevant quantitative performance indicators in a dedicated, focused document. In advance of the publication of the Revised Estimates Volume (REV) in December, a review of performance indicators was conducted with all

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Government Departments. The Public Service Performance Report also reported on progress on the pilot programme of Equality Budgeting, which was expanded in 2019. Fourteen high-level goals were articulated for Phase 2, resulting in active engagement from nine Government Departments. The Department’s work in this area reflects the Public Service Duty requirement set out in section 42 of the Irish Human Rights and Equality Commission Act 2014.

The Department of Justice and Equality and the Department of Public Expenditure and Reform engaged the OECD to conduct a Scan of Equality Budgeting in Ireland. Published on budget day, the report outlined key recommendations to advance Equality Budgeting policy. Implementation of these recommendations commenced in late 2019. The work on Equality Budgeting is also supported by regular meetings of the Equality Budgeting Expert Advisory Group.

1.2. Management of Voted Expenditure

Each year, the Dáil authorises funding for the services and activities of the Government in blocks of expenditure known as Votes. A Vote is a specific area of government expenditure, which is the responsibility of a single Government Department or Office. The Department monitors and manage expenditure by individual Votes, as well as analysing and managing public expenditure on an aggregate level. Throughout 2019, the Department of Public Expenditure and Reform monitored expenditure by Departments against monthly expenditure profiles published at the beginning of the year. These expenditure figures are published on a monthly basis in the Fiscal Monitor, which also contains key revenue figures published by the Department of Finance. Overall, the Department oversaw gross current expenditure by Departments of just over €60 billion in 2019, representing a year-on-year increase of almost €3 billion or 5.2% over the 2018 outturn. The Department also: examined and evaluated proposals from Departments and Agencies on a value for money and resource prioritisation basis; advised on whether or not the proposals should be sanctioned; and reviewed and advised on the policy and performance of State bodies. Twenty five of the 42 Votes managed expenditure within the original voted allocations for 2019, with the remaining 17 requiring Supplementary Estimates in December. Of these, 4 were technical Supplementary Estimates. Among other things, the substantive Supplementary Estimates in 2019 provided additional expenditure for the provision of a 100% Christmas Bonus for weekly Social Welfare recipients and the Health Service and Asylum Seekers Accommodation. Savings across other Departments brought overall expenditure for the year broadly in line with the amount set out in the Expenditure Report 2020. Due to the nature of its role, the Department also engages extensively with other Departments and public bodies in respect of a broad range of sectoral policies across the whole-of-Government.

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1.3. Capital Expenditure Management

The Department oversaw gross capital expenditure by Departments of €7.2 billion in 2019, representing a year-on-year increase in capital investment of €1.2 billion, or 20%, over the 2018 Appropriation Account outturn of €6.0 billion, reflecting the Government’s commitment to increase capital expenditure in line with the National Development Plan. Project Ireland 2040 - the National Development Plan (NDP) and the National Planning Framework - launched by the Government in 2018, seeks to reform how public investment is planned and delivered to achieve long-term economic, social and environmental sustainability. It includes investment of €116 billion over ten years through the Exchequer and Semi-State companies. Project Ireland 2040 is already delivering better transport links, facilitating better health and environmental outcomes and stimulating greater housing output. The implementation of the NDP takes into account the recommendations from the 2017 IMF Public Investment Management Assessment (PIMA) which found that, overall, Ireland manages its public infrastructure relatively well and highlighted strengths and weaknesses in Ireland’s investment management system for consideration. The following outputs continued to support the implementation of PI2040 in 2019:

Publication of Build 2019 – Construction Sector Performance and Prospects.

Publication of Prospects - Ireland’s Pipeline of Major Infrastructure Projects detailing high level information on 50 of the largest projects included in Project Ireland 2040.

Publication of the first Annual Report setting out progress to date in delivery as well as policy developments across the system.

Publication of eight Regional Reports detailing investment delivery and plans under Project Ireland 2040.

Publication of an updated Public Spending Code following an extensive consultation process to strengthen the existing guidance for public investment to better reflect the realities of project delivery with a particular focus on financial appraisal, cost estimation and risk management.

Publication of the Myprojectireland mapping tool, alongside an updated and expanded Investment Tracker.

Representation of Project Ireland 2040 at the National Ploughing Championships. As outlined in the National Development Plan (NDP), Public Private Partnerships (PPPs) will continue to feature as a procurement option available to Government for appropriately structured projects that demonstrate value for money over a traditional procurement option and which meet the robust and rigorous tests for project appraisal that apply to all public investment projects under the Public Spending Code. Rather than pursuing a specific programme of PPP projects, decisions on pursuing further projects by PPP are taken on a case by case basis, based on the merits of using PPP in the case of each individual project as compared with the alternative traditional procurement option.

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1.4. Irish Government Economic and Evaluation

Service

The Irish Government Economic and Evaluation Service (IGEES) is an integrated cross-Government service that aims to support better policy formulation and implementation in the Civil Service through the use of data and policy analysis. IGEES staff operate within each Department, supplementing the expertise of those working on policy analysis and formulation. IGEES continued to grow in 2019 to approximately 200 economists/policy analysts across the Civil Service. In 2019, the Department continued to support IGEES to build capacity in evidence-informed policy making in the Civil Service. This involved central specialist recruitment - 31 IGEES Graduate Policy Analysts (Administrative Officer level) and 12 Economist/Policy Analysts (Assistant Principal Officer level) were recruited in 2019 - structured mobility, summer student internships, targeted learning and development opportunities, and organisation of conferences and other events as platforms for discussion of analysis and its relevance for policy. 2019 also saw the expansion of the IGEES learning and development suite. This included training in Cost Benefit Analysis, Multi-Criteria Analysis, Regulatory Impact Assessment, and courses in statistical computer programmes (R and Stata). IGEES members also facilitated a

module of the Civil Service Graduate Programme: outlining evidence-informed policy making tools to newly recruited AOs and Third Secretaries from across the Civil Service; training on Business Cases at both introductory and intermediate levels; and providing a bespoke induction programme for newly recruited IGEES AOs. Over 50 papers were produced by IGEES staff across Departments in 2019, covering a variety of topics including health, social protection, education, climate change, tax policy, and capital expenditure, all of which are available on the IGEES website. A number of these were published as part of the 2019 Spending Review and Budget 2020. To support policy debate and evidence-informed policy making, in 2019 IGEES organised two conferences (the IGEES Spending Review Conference and the IGEES Annual Conference) and hosted a number of seminars. In addition, IGEES staff from across the network engaged in a variety of external conferences, including the Dublin Economic Workshop and the NERI Labour Market Conference. 2019 also saw the continuation of the IGEES Research Fund, established to support analytical work on cross-departmental policy issues. The 2019 fund was allocated to support two new collaborative projects involving the Department of Children and Youth Affairs and the Central Statistics Office (CSO), as well as the Department of Public Expenditure and Reform (DPER) and the Department of Business, Enterprise and Innovation (DBEI). The IGEES Medium Term Strategy for 2020-22 was developed throughout the second half of 2019, informed by an OECD review of the service and an extensive stakeholder consultation. This was launched in early 2020.

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1.5. Government Accounting

The role of the Government Accounting Unit (GAU) of the Department is to develop government accounting policies, principles and procedures to promote and strengthen good financial management and accountability across Government Departments and Offices. In 2019, GAU progressed the examination of a transition from cash to accrual accounting for central Government Departments and Offices, taking account of a wider reform agenda including the roll-out of the Financial Management Shared Services (FMSS) and developments at EU level concerning the future implementation of harmonised accounting standards – European Public Sector Accounting Standards (EPSAS). As part of the European Commission Structural Reform Support Programme (SRSP), the OECD conducted an assessment of the central Government Accounting Framework and identified a road map for implementation of financial reporting reforms, including a move to accrual accounting. Following consultation with key stakeholders, the OECD published its report Financial Reporting in Ireland in June, setting out its key findings and recommending a phased implementation approach. The following key initiatives were progressed:

Modernisation of Public Financial Reporting and Accounting: In October, the Government noted the range of reforms to Ireland’s public financial reporting and accounting system recommended by the OECD. It agreed an outline roadmap to implement them during 2019 and subsequent years, noting the need for a collaborative approach to take account of the financial management expertise that already exists across central Government.

Public Spending Code: The Public Spending Code is the continuously evolving set of rules, procedures, and guidance to ensure Value for Money for public expenditure across the Irish Public Service. In July 2019, the GAU published Circular 18/2019 which revised the Central Technical References and Economic Appraisal Parameters of the Public Spending Code. Further supplementary guidance material was published in December. Also in December, the GAU published Circular 24/2019 which among other things updated the Public Spending Code as it applies to capital expenditure and updated the guidance in relation to Public Private Partnerships.

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2 Brexit and International Cooperation

2.1. Brexit

A dedicated Brexit/EU Unit is responsible for coordinating and overseeing Brexit, EU and other international issues across the Department and for contributing to the whole-of-Government response to Brexit.

Throughout 2019, the Unit continued to address the issues that have arisen as a consequence of the 2016 UK referendum on EU membership, including its impact on Ireland’s future relationship with both the EU and the UK, notably with Northern Ireland. This work included coordination of the Departments’ preparations for Brexit in all scenarios, in line with the Government’s Contingency Action Plan, in areas such as public procurement, EU programmes and the infrastructure requirements at ports and airports. Budget 2020 was prepared on a no-deal basis and included specific measures aimed at continuing our ongoing and comprehensive response to the impact of Brexit across Government.

The Department supported the Minister as a member of the Cabinet Committee on Brexit, Foreign and European Affairs.

2.2. EU Matters

In a year that saw a new European Parliament and European Commission and the emergence of new priorities at an EU level, the Department contributed to the development of EU-related policy across Government, including through the work of the Interdepartmental Group on the EU and Brexit and related interdepartmental groups. The Brexit/EU Unit coordinates the EU issues for which the Department is responsible, as well as supporting the work of other Divisions, including through an attaché and support staff based in Ireland’s Permanent Representation to the EU in Brussels. These issues include public procurement, eGovernment, Cohesion policy, climate finance, the EU’s Staff Regulations, Public Sector information and whistleblowing.

2.3. North South Cooperation

While it was not possible to hold sectoral meetings of the North South Ministerial Council (NSMC) relating to the Special EU Programmes Body in 2019 due to the absence of an Executive in Northern Ireland, the Department continued to support work on North South cooperation undertaken under the auspices of the NSMC and by North South Implementation Bodies (NSIBs). In particular, the Department worked with counterparts in the Northern Ireland Department of Finance on financial governance issues relating to the North South Implementation Bodies established under the Good Friday Agreement, agreeing a new template Financial Memorandum in 2019.

2.4. EU Structural Funds Programmes

Ireland was successful in securing €1.2 billion of EU Structural Funds for the period 2014-2020. Of this, €411 million is for programmes co-funded by the European Regional Development Fund (ERDF), for which the Department has overall responsibility. Some €610 million is allocated to the European Social Fund (ESF) and the Youth Employment Initiative

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(YEI) under the aegis of the Department of Education and Skills. A further €169 million is devoted to the nine European Territorial Co-operation (ETC) Programmes, most notably the two North-South Programmes (PEACE IV and INTERREG IVA). During 2019, the Department worked closely with the ERDF Managing Authorities to meet Irelands N+3 deadline of 31 December 2019, ensuring no de-commitment of EU ERDF funding. ERDF receipts for 2019 amounted to €24.5 million. Details of some of the key initiatives progressed during 2019 are set out below:

North South Programmes: The Department worked closely with the Department of Finance in Northern Ireland and the Special EU Programmes Body (SEUPB) on oversight of the 2014-2020 cross-border PEACE and INTERREG Programmes. These programmes are 85% funded by the EU through the European Regional Development Fund and have a total value of €553 million. By the end of 2019, both programmes were fully committed, with 128 projects supported. The Department also commenced planning for the new PEACE PLUS programme proposed by the EU as a successor programme for both PEACE and INTERREG for the 2021-2027 period, working closely with SEUPB and the Department of Finance Northern Ireland.

European Territorial Cooperation: In addition to the North South Programmes, Ireland is also a partner in the Ireland Wales INTERREG Programme (which has a total value of almost €100 million over the 2014-2020 programming period), as well as a number of transnational programmes, namely the Atlantic Area, North West Europe, and the Northern Periphery and Arctic Programmes. The Department is currently engaged in the planning process for each of the three transnational programmes for the 2021-2027 programming period

ERDF Audit Authority: As the designated Audit Authority in Ireland for the 2014-2020 programming period, the Unit completed the audit of the 2017/18 Accounts resulting in an unqualified audit opinion. This was submitted to the European Commission together with the Authority’s Annual Control Report in February 2019. As part of the review of the 2018/19 Accounts, the Authority has completed 30 operations audits and conducted 16 systems audits across the two Regional Programmes. The Annual Control Report and unqualified audit opinion on the accounts were submitted in February 2020.

The Department hosted the Partnership Agreement Monitoring Committee (PAMC) in December for stakeholders and the Commission. This monitors progress on implementing the strategic objectives identified in the Partnership Agreement and provides updates on implementation issues.

The Department commenced formal engagement in relation to the development of the 2021-2027 Partnership Agreement and the ERDF Operational Programmes. In May 2019, it convened a Strategic Overview Programme Development Meeting (Horizon Scanning), a high level forum to discuss next steps/timelines for progression. The Department also undertook a review of programme structures for the next round of funding. Procurement for a Needs Analysis for the next round of programmes commenced in Q4 2019.

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2.5. European Structural and Investment Funds (ESIF)

Policy

Negotiations that began in 2018 on the next round of Structural Funds are now moving towards completion. This process was commenced by the Commission’s publication of the Multi-annual Financial Framework (MFF) on 2 May 2018. This was followed by the publication of its Cohesion Policy Legislative package on 29 May, along with initial indicative allocations of structural and cohesion fund support for each member state. Ireland’s allocation was estimated at €1.088 billion at the time but its final allocation, and the distribution across the various Funds, will not be confirmed until after the conclusion of negotiations on the MFF (although it expected that it will ultimately be lower). In the period since, the Council’s position on the overall package has been agreed and negotiations are progressing with the European Parliament with a view to having them completed in advance of the start of the next programming period.

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3 Public Service Pay, Pensions and Industrial Relations

3.1. Public Service Stability Agreement 2018-2020

The Financial Emergency Measures in the Public Interest (FEMPI) Acts 2009-2013 have underpinned public service pay and pension reductions since 2009. Collectively, the savings from these measures played a crucial part in the stabilisation of the public finances.

The Public Service Stability Agreement (PSSA) 2018-2020 was negotiated to provide for further sustainable unwinding of these measures, a process that commenced under FEMPI 2015. The agreement, which continues to serve as the industrial relations framework for the Public Service until end-2020, continued in 2019 to provide benefits to different income groups of between 2-2.5% on average, through a mixture of reform of the Pension Related Deduction and pay increases. As a result, the phased unwinding of the FEMPI Acts 2009-2013 has almost been completed.

The conversion of the Pension Related Deduction from a temporary emergency measure into a permanent Additional Superannuation Contribution was also accomplished, securing a funding stream of just over €650 million in 2019 to help meet the costs of public service pensions.

In March 2019, implementation of the agreement reached between the Government and the Public Services Committee of the Irish Congress of Trade Unions commenced on the remaining salary scale issues for New Entrants. Over time, this will give an average benefit of approximately €3,300 for over 61,500 new entrants, in addition to the core benefits provided under the Public Service Stability Agreement. The cost of this agreement has been phased to ensure the estimated €200 million full year expenditure requirement is fiscally sustainable.

The PSSA has provided the flexibility to address various issues in 2019 in a fair and sustainable manner, including the remaining salary scale issues for new entrants, recruitment and retention difficulties in the Public Service, and industrial relations issues in the Health Sector.

3.2. Public Service Pay Commission (PSPC)

The Public Service Pay Commission was established in 2016 to advise Government on public service remuneration policy and has delivered four reports in total. The Commission’s initial mandate was to report on how the unwinding of the Financial Emergency Measures in the Public Interest (FEMPI) legislation 2009 to 2013 should proceed. This was covered in the Commission’s first report, published in May 2017.

Following on from this, the Minister issued additional Terms of Reference, asking the Commission to establish whether, and to what extent, a difficulty existed in terms of recruitment and retention for specific groups/grades/sectors of the Public Service. It adopted a modular approach, reporting in August 2018 on issues relating to Nursing and Midwifery, Non-Consultant Hospital Doctors and Hospital Consultants. In May 2019 it published its third report which related to the Defence Forces and its proposals were accepted by Government and the relevant staff representatives. Its final report was published in October 2019,

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marking the conclusion of its work programme and the expiry of its mandate. This report provided a high level analysis of the remaining grades and specialities which were highlighted in its May 2017 report as showing evidence of recruitment and retention difficulties. These included specialist grades in the public service, senior posts and certain public service health professional grades.

3.3. Industrial Relations

Management of Industrial Relations The Department worked intensively over 2019 to manage significant industrial relations challenges. There were significant disputes in the Health Service involving Nurses and Midwives in Q1 2019 and Health Support Grades in Q3. The Department was actively engaged in the dispute resolution processes for both of these disputes, contributing to the development of creative solutions within the framework of the PSSA. These solutions:

protected citizens who depend on vital public services;

balanced the concerns of the employees, the employer and the taxpayer; and

phased the impact over time and minimised the cost to the Exchequer.

The Labour Court Recommendation on Nursing and Midwifery is predicated on a new contract that will deliver additional productivity and support the roll-out of Sláintecare.

The Civil Service Industrial Relations Graduate Programme A new initiative, the Civil Service Industrial Relations Graduate Programme, was designed to support the development of IR Executives with the skills and knowledge required to effectively manage industrial relations in a complex and diverse environment. It commenced in March 2019, with its first 6 participants. The programme runs over two years and involves three work experience rotations of 8 months duration, giving participants practical experience in the Department of Public Expenditure and Reform, the Department of Agriculture, Food and the Marine, and the Workplace Relations Commission. Participants are also required to complete a bespoke Professional Diploma in Industrial Relations at NFQ Level 8, which has been designed to meet the particular needs of the Civil Service IR environment.

3.4. Single Public Service Pension Scheme

The Single Public Service Pension Scheme (“Single Scheme”), which was introduced in 2013 for all new entrants to the Public Service, is operated by over 350 public service employers across all sectors. The Single Scheme Administration Project (SSAP) team is a dedicated unit, established in the Department in 2016 to examine the options for the long-term administration of the Scheme and to support the current administration of the Scheme. During 2019, the unit continued to provide an extensive technical training programme to pension administrators. In addition to the 5 modules previously developed, a new Purchase and Transfer module was designed. All 6 modules were delivered across 30 training workshop sessions. A total of 613 pension administrators from 191 public service employers participated in 2019. Supporting materials, including templates, guidelines and toolkits, continued to be made available via the dedicated Single Pension Scheme website. On-boarding of public service bodies to the Single Scheme Databank commenced in Q3 2019. Following a Government decision, the databank was established as an interim measure to ensure that membership data for all Scheme members since 2013 is maintained

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to a common standard pending a decision on the long-term administration of the Single Scheme.

In 2019, the Department also made significant progress on the development of policy for the Single Scheme. Regulations which introduced a “purchase and transfer” facility for Single Scheme members were introduced in June 2019, while a review of Single Scheme employer contributions was completed and revised guidance on vesting policy was issued.

3.5. Other Pay and Pensions matters

Civil Service Starting Pay Arrangements Revised starting pay arrangements were agreed between the Official and Staff sides at General Council in 2019. The arrangements, which were introduced under DPER Circular 08/2019: Revised Arrangements Applying to Starting Pay, modernised and simplified the way existing civil servants are treated in terms of pay-setting when promoted from confined competitions or appointed/recruited from open competitions. Actuarial Review of Public Service Pension Liabilities In 2019, the Department commenced the data collection phase for the triennial actuarial review of public service pensions. The review, which is being carried out on behalf of the Central Statistics Office, is required under EU Regulation 549/2013 and will be completed in 2020. The data collection phase involved the collection and collation of individual member data from across the Public Service, involving approximatively 500,000 individual records from almost 300 Public Service Bodies and will be used to value the accrued liability of public service occupational pensions in Ireland as at 31 December 2018.The previous valuation was published in 2017 and set out the accrued liability of public service pensions as at 31 December 2015. Public Service Pensions Management Programme In Q1 of 2019, the Public Service Pay and Pensions Division developed the Public Service Pensions Management Programme. This innovative knowledge management and succession planning initiative harvests internal expertise on public service pensions and facilitates knowledge transfer. Detailed training materials were developed within the Division to underpin this bespoke NFQ Level 6 Certificate Course in Public Service Pensions Management. During 2019, 35 participants from the Pay and Pensions Division completed the Certificate Course, increasing the number of divisional officers with specialist pensions knowledge.

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4 Civil Service Renewal

4.1. Civil Service Renewal Plan

The Civil Service Renewal Plan sets out a major programme of change for the Civil Service and a vision to provide a world-class service to the State and to the people of Ireland. The Programme Management Office (PMO), which is located in the Department, works on developing and delivering Civil Service reform policy under the Civil Service Renewal programme. It continued to coordinate and drive the implementation of actions in the plan during 2019. The fourth progress report on the Civil Service Renewal Plan was published in May 2019 setting out the high level progress achieved in all of the actions in the plan since its implementation. Developmental work progressed to inform a new Vision and Strategy which will build on the progress made to date in Civil Service reform, identify a number of new priorities and align with Our Public Service 2020, the framework for public service development and innovation. A taskforce of senior civil servants was established to oversee the development of the Vision and Strategy in December 2019. It is expected that the new Vision and Strategy will have a longer planning horizon and will be informed by an extensive stakeholder engagement process. The PMO also continued to work closely with and supported the Civil Service Management Board (CSMB) which oversees the delivery of the Civil Service Renewal Programme. The CSMB met six times over the course of the year and its minutes are published on Gov.ie. A sub-group of the CSMB also played a key role in the People Strategy for the Civil Service. The following key initiatives were undertaken:

Civil Service Employee Engagement Survey: The PMO continued to assist Departments and Offices in the implementation of their Action Plans in response to the findings of the 2017 Civil Service Employee Engagement Survey results. The third iteration of the survey will take place in Q3 2020.

Civil Service Excellence and Innovation Awards: The 2019 Civil Service Excellence and Innovation Awards were presented by the Minister at a ceremony in Dublin Castle in November 2019. The awards celebrate the significant contributions that civil servants make and showcase innovations in policy and service delivery across the Civil Service. The 2019 awards process attracted over 90 nominations from across the Civil Service and 32 projects were shortlisted, with 11 award-winning projects. This year, several categories included collaboration with the Public Service, to reflect a more inclusive way of working. Details on the award-winning projects are available on Gov.ie.

Organisational Capability Reviews: Implementation of the programme of organisational capability reviews continued during the year with the completion of reviews for the Department of Culture, Heritage and the Gaeltacht and the Department of Housing, Planning and Local Government.

Shaping the Future of Work in the Civil Service in Ireland: DCU Business School completed a report into the findings of the 2017 Civil Service Employee Engagement Survey. The report entitled Shaping the Future of Work in the Civil Service in Ireland focuses on a number of the most challenging areas highlighted in the survey including:

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Involvement Climate; Innovative Climate; Performance Management; and Public Perception. The additional analysis took place across a range of Departments and Offices in a number of regions nationwide.

Structural Reform Support Programme (SRSP): A successful application to the EU’s Structural Support Programme was submitted in relation to a comprehensive review of the organisational structure of the Irish Civil Service and development of a roadmap for organisational transformation. It is envisaged that work will begin on the project in 2020.

Civil Service Customer Satisfaction Survey: The results of the 2019 Civil Service Customer Satisfaction Survey were published in November 2019. The report showed that 85% of customers surveyed were satisfied with both the service received (up from 83% in 2017 and 76% in 2015) and the outcome of their most recent contact with the Civil Service (up from 82% in 2017 and 76% in 2015), while dissatisfaction declined from 39% in 2009 to 20% in 2019. Furthermore, 89% of customers indicated that service levels are mostly meeting or exceeding expectations (up from 87% in 2017 and 83% in 2015), and 87% were satisfied with both the knowledge and helpfulness of staff. The public’s perceptions of Civil Service efficiency, trust, independence and equality have also all improved since 2017.

National Data Infrastructure (NDI): Further progress was made on developing the National Data Infrastructure in 2019. The Champions Group, chaired by the Central Statistics Office (CSO), with representatives from all Departments and agencies with high value data, monitors and promotes coverage of key identifiers across public sector data holdings. The NDI dashboard, developed by the group, summarises the coverage of record-level PPSNs and Eircodes for key data holdings of Government Departments and agencies under their aegis and identifies where opportunities exist for improved coverage of the PPSN and Eircode in administrative systems and processes. These improvements will support Public Service Body-specific initiatives in the first instance and support the broader initiative of data sharing as proposed in the Data Sharing and Governance Act. It is envisaged that this approach will extend to the Unique Business Identifier (UBI) in 2020.

Other Strategies/Programmes: Further progress was made in relation to the Government Communications Programme with the roll-out of the Government of Ireland identity and transitioning of Departments to Gov.ie, the portal for Government services and information. Steps were also taken to improve project management capacity in the Civil Service and to align it with Action 10 of Our Public Service 2020 to embed programme and project management. The Project Managers’ Network held four events during the year. The Network is now available to the wider public service with a new dedicated portal on the OPS 2020 website which is accessible to all including public servants that are not on the Government Network. OneLearning continued to deliver the foundation level course in project management for civil servants and approximately 1,680 officials have completed the course since it began in late 2017.

An ongoing communications and engagement programme for staff including Civil Service Renewal newsletters, town hall meetings around the country and staff information sessions for civil servants continued in 2019. A new identity to better communicate Civil Service reform and innovation and public service reform, which was developed during 2019, was implemented in early 2020.

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4.2. People Strategy for the Civil Service 2017-2020

The Civil Renewal Programme also encompasses the People Strategy for the Civil Service 2017-2020, which was developed to take account of the Public Service Duty requirement set out in section 42 of the Irish Human Rights and Equality Commission Act 2014. The Strategy’s objectives were supported through the implementation by the Department of a number of key initiatives under the three strategic priorities and one enabling priority of the Strategy, as set out below.

4.2.1. Be an Employer of Choice Work continued to promote the Civil Service as an Employer of Choice for existing staff and potential new recruits, including through the following projects and areas of work:

Learning and Development – OneLearning is the Civil Service Learning and Development Centre. Since its launch in September 2017, training has been delivered to over 27,500 attendees in 44 Civil Service bodies in 25 counties. In 2019, over 1,100 course sessions took place with over 12,500 in attendance.

In May 2019, the Learning Management System (LMS) went live in 7 Civil Service Bodies with all remaining bodies going live in October, 2019. It enables reporting on learning and development activity and engagement and spend on OneLearning courses across the Civil Service. There are 67 courses currently available, with 8,000 staff enrolled in course sessions and over 9,000 have registered interest in various courses. It has increased the availability of open enrolment courses, supporting shared learning, collaboration and networking across all civil service bodies. It will also enable digital learning (eLearning, webinars, videos etc.) and the future implementation of a Civil Service Skills Register.

Graduate Development: 208 recruits at Administrative Officer (AO) and Third Secretary level participated in the Civil Service Graduate Development Programme during 2019. This nine-month, on-the-job, interactive development programme provides learning opportunities on a range of topics including: leadership styles; project management; innovation and problem solving; Government accounting; evidence-based policy making; and the legislative process. Programme participants had access to senior civil service leaders and to an AO Network.

The Civil Service Employee Assistance Service (CSEAS) contributes to organisational effectiveness through the regional delivery of services which promote employee health and wellbeing, and foster a resilient workforce. An estimated 14% of civil servants now use the Service annually, availing of information and support from the CSEAS in relation to a variety of personal and/or work-related issues. Demand for these services is on the rise, with an increase of 20% from 2018 to 2019. A key activity of the CSEAS in 2019 was the promotion of the People Manager Guide for the Civil Service, with over 30 presentations delivered to people managers, reaching approximately 540 target staff. Also, to date over 200 presentations in the area of workplace wellbeing have been delivered to staff across the Civil Service.

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4.2.2. Build the Workforce of the Future A key focus during 2019 was to strengthen the systems in place across the Civil Service aimed at having the right people with the right skills in the right place at the right time, including the following:

Strategic Workforce Planning: In collaboration with key stakeholders, the Department has continued to develop a more focused workforce planning process through the design of template plans, guidelines and timelines. There has also been a greater focus on data management and capability development, to assist Local HR teams to work with their departments in planning the numbers and skills required for their workforce of the future.

Recruitment: The Public Appointments Service (PAS) assigned c. 6,400 people on behalf of the Civil Service. As part of an ongoing programme to create professional streams and increase the specialist skills available, the PAS recruited Graduate Policy Analysts and Economists (36); EO (ICT) (50); HEO (ICT) (40); Communication Specials (17) and AP (HR) Managers (18) alongside core Civil Service skills. The first ICT apprenticeship scheme was launched and a review of eligibility requirements for competitions was carried out.

The Civil Service Mobility Scheme, which commenced in 2015 with the launch of a scheme for Principal Officers (PO), is being undertaken over a number of phases. To date 100 PO roles have been advertised and 58 positions filled to end-December 2019. Mobility for Clerical Officers and Executive Officers went live in September 2018 and circa 5,150 staff (25% of the total participating grades) have applied and over 500 have moved at end-December 2019. The next phase, in respect of the grades of HEO, AO and AP, is on target to launch in 2020.

Strengthening Professional Expertise within Corporate Functions: Work continued on strengthening professional expertise within the Human Resource Management, Finance and ICT functions in the Civil Service. The primary focus has been on developing a HR Operating Model (see details under section 5.2.4, below) and conducting a review of HR Career Framework and Standards. As noted above, work was completed on the new ICT apprenticeship programme, which was launched in early 2019. In Finance, a position paper has been drafted with a number of recommendations on next steps to professionalise the Finance function. The initial focus area is the OECD Assessment of Accounting Framework.

4.2.3. Build, Support and Value Managers as People

Developers

Work continued under the People Strategy on a range of projects that reflect a culture of

valuing and developing strategic leadership capability, including good people management

at all levels. These included:

Building Leadership: A number of bespoke support and development initiatives for the most senior civil service leaders were delivered, including: Masterclasses; Executive Coaching for in excess of 40 senior leaders; Five Senior Public Service (SPS) networking events focused on core challenges facing the Civil Service and its leaders: Mentoring for recently appointed Assistant Secretaries; and the management of the

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Assistant Secretary Mobility process in respect of 18 posts. A review of a Management Team Coaching pilot, involving three Departments, commenced in late-2019. In addition, work continued on strengthening the pipeline of future senior civil service leaders. The second iteration of the Senior Public Service (SPS) and PO Talent Development Programmes was completed by 61 participants and an independent external evaluation was undertaken. The results of the evaluation were very positive and will be used to inform the design and delivery of the 2020 programmes.

Strengthening People Managers: The Department is driving a significant project aimed

at improving how we manage our people. Working with HR experts across the system,

good progress was made during 2019 on defining the People Manager role and

developing a suite of metrics to assess managers in that role.

As noted above, a key activity of the CSEAS in 2019 was the promotion of the People

Manager Guide for the Civil Service. The positive impact of this guide (and its associated

educational campaign) continued throughout 2019, as increases in usage of the CSEAS

were observed in the grades of HEO, AP and PO.

Training for managers: People managers across the civil service availed of 187

courses from OneLearning’s portfolio of Team Work and People Management courses in

2019. In total, 3,833 people managers have attended this training since the courses

commenced at the end of 2017.

Devolving responsibility to mangers: To improve and simplify the arrangements for managing performance in the Civil Service, the Department progressed the Civil Service Regulation (Amendment) Bill. This will enable the devolution of management functions to managers at different levels across the Civil Service.

Better data for managers: During 2019, the Department developed a proposal for a suite of metrics to support managers in managing their staff.

4.2.4. Position HR as a Strategic Driver Work is ongoing on a number of projects to ensure that HR in the Civil Service adapts and responds to the evolving demands from the business and delivers on the three strategic priorities of the People Strategy.

An external review funded by the EU Commission, titled HR Operating Model (HROM) Review, was carried out in 2019. It recommended that radical changes are needed in how HR works in the Civil Service in order to ensure value for money and maximise talent and performance of the workforce. The HROM Review sets out six high level recommendations for HR as the basis for the next stage of the project, which involves the detailed design, testing and implementation of these recommendations through a proof of concept pilot in three Departments in 2020.

HR Analytics: The Department made a significant investment in developing its first ever set of HR Analytics for the civil service to support evidence-based decision making in HR. This data will be used as a baseline to measure the benefits and impacts of the People Strategy both now and into the future. Further work has also been initiated on the development of a suite of analytics to support HR at organisational level.

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HR Policies: New Policies aimed at improving the services of HR were in development during 2019, with significant progress been made on the area of attendance management including: Management of Attendance Policy; Guidance for Employers on Reasonable Accommodation; Guidelines for Probation; and Guidance on Ill-Health Retirement.

4.3. Public Service Sick Leave

Significant progress was made towards the implementation of changes to Public Service Sick Leave scheme as recommended by the Labour Court. These changes included:

The application of a flat rate of 37.5% of Temporary Rehabilitation Remuneration (TRR) with a top up model available for a period of five years to those who may have previously accessed a higher rate of TRR;

A 3-day waiting period before TRR is applied in circumstances where full and half pay limits have been exhausted; and

All paid sick leave including TRR to now be included in the lookback process that is carried out to determine future access to paid sick leave.

These recommendations are on schedule for implementation in 2020 and are intended to simplify the scheme as well as increasing efficiency and equality of access to the scheme across the Public Service.

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5 Public Service Reform

5.1. Our Public Service 2020

Our Public Service 2020, the framework for public service development and innovation became operational in 2018 and was developed to take account of the Public Service Duty requirement set out in section 42 of the Irish Human Rights and Equality Commission Act 2014. It contains 18 actions under the following three pillars:

Delivering for our Public;

Innovating for our Future; and

Developing our People and Organisations.

As well as innovation and working collaboratively across whole of Government, the framework emphasises the importance of digital delivery and using data to achieve greater efficiency. It also has a strong focus on organisations and people, with actions in areas such as strategic human resources, employee engagement, performance management, and culture and values, as well as greater focus on achieving real change and outcomes. Details of the action team membership and work programme updates are posted to the OPS2020 website. In addition to the six (of 18) actions already commenced in 2018, six further actions were prioritised for advancement during 2019, with continued sharing of good practice, experience and expertise across sectors by participants. Developments under the key themes during 2019 were as follows:

Innovation in Governance: An innovative, strengthened, model of governance was established in 2018 to oversee implementation of the actions in Our Public Service 2020. This involves a Public Service Leadership Board (PSLB), with Secretary General/CEO level participation drawn from the Civil Service Management Board and representatives from a broad range of Public Service organisations. This met on three occasions in 2019. The PSLB is, in turn, supported by the Public Service Management Group (PSMG), with Assistant Secretaries and equivalent participation from across the Civil and Public Service. This also met on three occasions in 2019.

Monitoring Our Public Service 2020: The First Progress Report of Our Public Service 2020 was published. A database of the reforms that are being undertaken across the public service under the OPS 2020 has also been developed and populated. Work commenced on identifying indicators linked to the 3 Pillars of Our Public Service 2020

Promoting Innovation: Our Public Service 2020 contains a number of initiatives to promote a culture of innovation across the Public Service. In 2019, the following progress has been made:

Innovation practitioners have been seconded into the Department’s Reform Office from across different a number of different areas of the Public Service to support public servants in driving innovation in their organisations;

The Public Service Reform Office was approved for funding under the European Commission’s Structural Reform Support Service Programme to develop a public service innovation strategy, to create a skills framework for public service innovation and to design an innovation in leadership learning and development intervention;

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43 organisations have signed up to Ireland’s Declaration on public service innovation which had been developed based on the OECD declaration, tailored to Ireland;

The Public Service Innovation Network was established in September 2019 and has a membership of over 430 public servants from across all sectors;

A pilot Public Service Innovation Fund was launched, with 18 diverse projects from across all sectors receiving funding totalling over €500,000;

The first public service-wide innovation week was held in December, where teams explored innovation, collaborated on ideas and participated in over 200 events and activities across the country. Over 600 people attended the Innovation Conference held in Dublin Castle where the programme featured over 20 speakers and showcased great examples of innovation in our public service. In addition, over 500 people participated in innovation workshops, called Faster Classes;

A Public Service Innovation Newsletter was developed and issued to promote events and opportunities for public servants;

The Reform Office and the Institute for Public Administration developed a Professional Diploma in Public Service Innovation. The first intake is March 2020. Additionally, over 140 public service managers were placed on a 2-day ‘Essentials of Innovation’ course from across the wider public service. A further suite of interventions were also developed for rollout during 2020; and

The Public Service Reform Office collaborated with the Office of the Government Chief Information Officer to produce Cruinniú Govtech and develop Ireland’s action plan to embed GovTech in Ireland.

Civil Service General Customer Satisfaction Survey: 2019 saw the eighth of a

series of surveys (since 1997) of the general public undertaken on behalf of the Department by an independent opinion research company to determine satisfaction levels with services received from civil service departments and major offices. Overall satisfaction levels for service delivery and outcome in the 2019 survey were the highest recorded to date:

85% of customers were satisfied with both the service received (up from 83% in 2017 and 76% in 2015) and the outcome of their most recent contact with the civil service (up from 82% in 2017 and 76% in 2015)

89% indicated that service levels are mostly meeting or exceeding expectations (up from 87% in 2017 and 83% in 2015)

Quality Customer Service: During 2019, the Quality Customer Service Network (QCSN) expanded to the wider Public Service as part of OPS2020, increasing its membership across all sectors. The Customer Communications Toolkit for the Public Service, includes guidance on general writing style principles, verbal and non-verbal communications, design of forms and documents, web and social media content and how to display signage. This was reviewed and revised during 2019 by the Reform and Delivery Office in collaboration with the Centre for Excellence in Universal Design and is available on the OPS2020 website.

Other deliverables in 2019 under the four active themes in the Developing our People and Organisations Pillar of OPS 2020 included: a strategic HR Managers Network was established to drive the people initiatives emerging under Pillar 3; continuous and Professional Development, Strategic Workforce Planning, and Equality, Diversity, and Inclusion.

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A Research Paper on Strategic Workforce Planning in the Irish Public Service, commissioned from the IPA, was published and a Cross Sectoral Action Team established to promote initiatives in equality, diversity and inclusion. A Diversity and Innovation Conference was held in October 2019, in which over 250 Public Service Leaders participated.

Robotic Process Automation: The Department worked in conjunction with the Office of Government Procurement (OGP) to publish a framework agreement for Robotic Process Automation (RPA). This framework allows all public service bodies to drawdown RPA services from an agreed supplier, which will save Public Service bodies significant time and money when investigating and implementing RPA. A key aspect of the framework agreement is that it will enable the transfer of RPA skills from the supplier to the public service body so that it may become fully proficient in this emerging technology. The Department also assisted the HSE in developing its first pilot on the roll-out of RPA, which is expected to begin operations in 2020. As part of its ongoing obligations to upskill public servants in alternative models of service delivery, the Department held a number of information sessions for public servants on RPA. RPA is now operational in at least seven public service bodies and is under exploration and testing in a variety of others.

Benefacts: The Department provided grant-aid to Benefacts, a non-profit social enterprise established to make the work and funding of the non-profit sector in Ireland more transparent. Benefacts’ online database provides free public access to regulatory, financial and governance data on some 30,000 organisations, including all registered charities and thousands of other non-profit organisations, such as education institutions, social enterprises and sports and professional bodies. The data is also provided in open formats on the Government’s Open Data Portal, where it can be accessed for free.

5.2. Openness, Transparency and Accountability

The Department further advanced its programme of reforms aimed at delivering open, accountable and ethical government. The following key initiatives were undertaken:

Open Government Partnership (OGP) is an initiative of over 70 countries which aims to secure concrete commitments from governments to promote transparency, empower citizens, fight corruption, and harness new technologies to strengthen governance. It is run by a steering committee composed of governments and civil society organisations. Ireland’s End-Term Self-Assessment Report on the OGP National Action Plan 2016-2018 includes detailed reports on the implementation of each of 15 commitments in the plan. During 2019, the Department engaged with the recently established Open Government Association Ireland to design a more effective process for creating and implementing Ireland’s next National Action Plan,

Open Data: The Department continues to be a leader in Open Data as Ireland retained first place in the EU Open Data Maturity survey in 2019 for the third year in a row. Ireland also improved its ranking for Open Data to third place in the OECD. This was achieved through the continued implementation of the national Open Data Strategy 2017-2022.

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At end 2019, the national Open Data Portal contained links to over 9,500 datasets from over 100 publishers and 595 public servants had received open data training. The Open Data Engagement Fund 2019/2020, which promotes use of datasets on the open data portal, provided total funding of €40,000 to 10 successful projects. The Department participated in a number of seminars and conferences during the year to promote the release of government data by public bodies and reuse of open data by SME’s, academia, media and citizens for social and economic purposes. The Department also organised an Open Data Conference in Dublin in November 2019 which addressed the theme of ‘Open Data Challenges and Opportunities’ and was attended by over 130 delegates. The Department collaborates with open data counterparts in other Member States and during 2019 hosted visits from Poland and Northern Ireland. The Open Data and PSI Directive negotiated by the Department in 2019 will further drive the release of data in open formats, via APIs and for free.

5.3. Legislative and Public Governance Measures

The following key legislative and public governance initiatives were progressed:

Freedom of Information: The Central Policy Unit (CPU) for FOI at the Department continues to support implementation and policy development in relation to the FOI regime. This includes providing support and advice by telephone and email through the FOI helpdesk to stakeholders including citizens, business, journalists and academics, as well as to some 600 FOI bodies. The CPU has also chaired 8 FOI Network meetings, held workshop sessions at venues throughout the country, presented at a number of other conferences and training events, developed new guidelines and maintained and updated content on the foi.gov.ie website.

Protected Disclosures: The Department continues to support implementation and policy development in relation to the operation of the Protected Disclosures Act 2014, which provides a single, over-arching and generally applicable regime for the protection of workers who speak up about wrongdoing in the workplace. Act. During 2019, it was involved in negotiations on proposals for an EU Directive on the protection of whistle-blowers, the final text of which (Directive (EU) 2019/1937) was adopted on 23 October. The Department has commenced preparatory work on the transposition of the Directive. It was supported in this by an inter-departmental network, established in 2018, which met three times in 2019.

Data Sharing and Governance: The Data Sharing and Governance Act, which was progressed through the Oireachtas by the Department, was signed into law on 4 March 2019. It provides a statutory framework for the promotion and encouragement of data sharing between public bodies for legitimate and clearly specified purposes compliant with data protection law. Two parts of the Act were commenced in April: Part 5, which relates to the sharing of public service information; and Part 6, which relates to the creation of Unique Business Identifiers. Preparatory work on the commencement of the remaining parts – in particular the establishment of a Data Governance Board – was advanced during the year with a number of workshops with key public service bodies held in 2019.

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Regulation of Lobbying: The Regulation of Lobbying Act 2015 established a web-based register of lobbying activity to deliver appropriate transparency on “who is contacting whom about what”. Lobbyists are required to register and make their returns with the Standards in Public Office Commission (the Commission) if they engage in lobbying activities, with returns required every 4 months. Approximately 40,000 returns have been submitted to the register and approximately 1,950 persons and organisations have registered on the register. The Act requires that its provisions be reviewed periodically. The second statutory review process was launched on 12 April 2019 and concluded on 10 May. The report of the review was published in February 2020. The Department also progressed a regulation (S.I. 144/2019) under the Act to amend the list of Designated Public Officials in respect of the Office of Public Works.

Ethics: The Department continued to attend meetings of the Review Group, chaired by James Hamilton, which is reviewing Ireland's criminal justice structures to combat economic crime and corruption. The Review Group will submit its report to the Minister for Justice and Equality in 2020.

The Department also provided feedback to the Standards in Public Office Commission in relation to an Information Notice from the Commission regarding 'Gifts to Office Holders'. A new Chair was appointed to the Outside Appointments Board during 2019. The Board provides independent scrutiny of post-employment appointments of certain civil servants and advisors that are taken up within one year of resigning or retiring from the Civil Service. The Public Sector Standards Bill 2015, which was being progressed by the Department during 2019, fell in February 2020 on the dissolution of the 32nd Dáil.

Engagement with International Organisations: The Department provided material for the UN Convention against Corruption's (UNCAC) full Country report for Ireland of the implementation of Chapters II (Preventive Measures) and V (Asset Recovery) of UNCAC.

In September 2019, it provided material for Ireland's Fourth Round interim compliance report to GRECO (Council of Europe's Group of States against Corruption) regarding the recommendations outstanding from the Fourth Round Evaluation of Ireland. The interim compliance report will be discussed at the GRECO plenary meeting in March 2020. The Department also provided material to the GRECO Fifth Round evaluation questionnaire in 2019. This is the first stage in the evaluation process and will be followed by an on-site visit to Ireland by the evaluation team in April 2020. The evaluation is focused on preventing corruption and promoting integrity in central government (top executive functions) and law enforcement agencies.

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6 Digital Government

6.1. Office of the Government Chief Information Officer

(OGCIO)

The Office of the Government Chief Information Officer (OGCIO) has a broad and varied remit which includes:

ICT service delivery;

oversight of ICT-related expenditure across the Public Service; and

technology policy for Government, including where this intersects with EU initiatives such as the eGovernment Action Plan, ISA2 programme, the Single Digital Gateway and eIDAS Regulations.

The OGCIO leads the implementation of a range of strategies such as: the Public Service ICT Strategy; the eGovernment Strategy 2017-2020; the implementation of Action 1 (Accelerate Digital Delivery of Services) of Our Public Service 2020 to support continuous development and innovation across the Public Service; and the Public Service Data Strategy 2019-2023. To deliver on its remit:

OGCIO works in collaboration with government departments and agencies across the Civil and Public Service to drive the Government’s transformation agenda. It plays a leadership role in digital service delivery and innovation initiatives across the Public Service; has oversight of ICT-related expenditure by Departments and agencies;, and represents Ireland at EU level in relation to public service ICT, digital and eGovernment, and at Government CIO working groups and forums in other multilateral organisations.

OGCIO is the division responsible for delivering ICT services in the Department. The Department’s Governance Committee oversees and directs ICT developments and service delivery to the Department in the context of the ICT Governance Framework.

The OGCIO is also responsible for the roll-out of Strategic ICT and Digital Transformation Programmes. It plays a leadership role across the Civil and Public Service to drive the implementation of the Government’s reform agenda in relation to ICT and digital delivery.

6.2. Public Service ICT Strategy Key Achievements

2019

The 18-Step Action Plan for the Public Service ICT Strategy was the outcome of collaboration between the Government CIO and department CIOs and Heads of ICT. It seeks to take forward the five strategic themes of the strategy: Build to Share, Digital First, Data as an Enabler, Improve Governance, and Increase Capability. Details of the progress made under each pillar is set out below.

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6.2.1. Build to Share

The Build to Share pillar seeks to move to a shared model for ICT service delivery, to support integration and sharing of resources across the wider public service while driving efficiency and controlling costs. The Build to Share suite (BTS) takes a number of forms and already has a very broad client base of organisations availing of some, or all, of the BTS services catalogue:

Build to Share Government Networks offers cost-effective, resilient, carrier-grade, high speed network services for voice, video, and data, to all public service bodies and enables secure inter-agency connectivity. Public service bodies in approximately 70 towns and cities around the country now have access to high speed, resilient network connectivity and the roll-out, which continued nationwide during the year, is currently made up of in excess of 800 network nodes. Delivery of a managed LAN service to Public Service Bodies (PSB), which commenced in 2018, is now in use by multiple agencies. Take-up of the centralised shared Wi-Fi infrastructure, which allows PSBs to deploy secure corporate and guest wireless networks in multiple locations with minimum investment in infrastructure, has increased with over ten agencies live and a number of others running proof of concepts. New IP Telephony infrastructure has been deployed centrally and in over 40 PSBs enabling resilient low cost calling across Government.

Build to Share Applications delivers a suite of corporate support applications common across government bodies. There is an ongoing roll-out programme to implement these applications across Departments which will continue, on a phased basis, through 2020 and beyond. Currently there are 40 public bodies on-boarded to the shared platform, each having adopted at least one application from the application suite, with over 100 iterations of these applications rolled out in total. A number of new applications were added to the suite during the year, including a new shared help desk system and a risk register system.

Build to Share Managed Desktop delivers the standard range of common end-user ICT services to public bodies. These include PCs, laptops, hybrid/tablet devices, office productivity suite, email, managed printing, video conferencing, local network, internet access, telephone and service desk support services as well as the associated underpinning hosting infrastructure and cyber security services. BTS Managed Desktop services were extended to additional organisations during 2019 including the Department of Children and Youth Affairs, the National Council for Special Education and the President’s Establishment. OGCIO is now the provider of core corporate ICT desktop services to over 3,000 users in nine organisations spread across more than 30 locations nationwide. Plans are progressing to on-board further Government Departments/ Offices during 2020.

Build to Share Private Government Cloud is delivering a shared robust, resilient, private Government Cloud infrastructure platform. This Infrastructure as a Service (IaaS) is available for system/ application hosting to all Public Bodies. Plans are progressing to on-board further applications from Government Departments/Offices during 2020.

Build to Share Government Data Centre presents a further opportunity for sharing of

infrastructure enabling public service bodies to locate their ICT infrastructure in a

purpose-built Government owned and run facility. The design phase is complete and the

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planning application, submitted to Kildare County Council, was approved in 2019 with a

number of conditions. The appeal of two of the conditions for the planning, submitted in

late 2019, will be heard in 2020.

6.2.2. Digital First

A Digital Leaders sub-group of the Civil Service Management Board was established in 2019 to oversee and accelerate digital transformation across the Public Service. On foot of the work of this group, a priority digital transformation programme has been agreed by Government and a shared Digital Agenda, encompassing all public bodies, has been established. The Digital Leaders Group, which extends to all sectors, will continue to monitor and drive digital transformation into 2020. The OGCIO has continued to develop and promote shared digital assets that improve consistency and efficiencies in the front and back-end provision of public services. Initiatives include the increased adoption of MyGovID, a common online authentication mechanism for use by public bodies which reaches over 475,000 verified accounts; the gov.ie portal, which presents a unified and consistent front to government information services, merged eight Government Department websites during 2019 and aims to encompass the remainder by the end of 2020; and the Revenue Online Service (ROS) process for authenticating businesses online has been enabled for reuse by pubic bodies other than the Revenue Commissioners via a recent legislative amendment.

6.2.3. Data as an Enabler

The Public Service Data Strategy, published in December 2018, aims to put in place a series of measures to improve how data is governed, managed and re-used in a secure, efficient and transparent manner for the benefit of citizens, businesses and policy makers. During 2019 the OGCIO held a series of inter-departmental workshops to put in place a resourcing and implementation plan to oversee the execution of the data strategy actions over the coming years. Work on a number of key actions within the strategy were carried out, including the enactment of the Data Sharing and Governance Act 2019, and the development of the Digital Postbox service. Work to rollout the Digital Postbox service, a secure digital alternative to letter sending by public bodies, will commence in 2020.

6.2.4. Improve Governance

The OGCIO continues to work with departments and agencies to take forward the implementation of the programme of ICT and digital transformation strategies and initiatives across Government. The ICT Advisory Board, which reports to the Civil Service Management Board (CSMB) through the Government CIO, continues to meet regularly to participate in and oversee the delivery of the 18 Step Action Plan. As lead for Action 1 of Our Public Service 2020, Accelerate Digital Delivery of Services, the Government CIO has regular engagements to encourage dialogue and ideas sharing and programme implementation between central and local government, An Garda Síochána and the health and education sectors.

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6.2.5. Increased Capability

The year saw good progress with the implementation of the ICT HR Professionalisation Strategy, which is designed to ensure that the Civil Service has the right blend of skills, knowledge and expertise available internally to deliver effective digital government services to citizens, businesses and civil servants. The ICT HR Working Group, a sub-group of the ICT Advisory Board, is progressing a number of actions to put in place the career spine for ICT, supported by appropriate recruitment, retention and mobility measures, as well as a skills development framework and suite of learning interventions. Among other things, a new cycle of ICT-related common recruitment campaigns took place during 2019. In addition, the pilot Civil Service Apprentice ICT Specialist programme was commenced. This is a two-year earn as you learn scheme in association with FastTrack to IT (FIT), the national coordinating provider for ICT Tech Apprenticeships, which seeks to tap into a new talent pipeline for ICT in the Civil Service. 34 Apprentice ICT Specialists started their two year programme in April 2019 and were placed with 11 Civil Service employers.

6.3. eGovernment Strategy 2017-2020

The eGovernment Strategy 2017-2020 is underpinned by the Government’s commitment to be open, flexible and collaborative with our citizens and businesses, using digitisation and technology to increase efficiency and effectiveness and constantly improve public services. It is underpinned by number of key principles, aligned with the EU eGovernment Action Plan 2016-2020, which will drive its implementation. These are: Digital By Default; Once Only Principle; Inclusiveness & Accessibility; Openness & Transparency; Cross-Border By Default; Interoperability By Default; and Trustworthiness & Security. Progress continues to be made on delivery on each of the 10 key actions of the Strategy in the context of the delivery of the OGCIO’s overarching work programme across a range of strategies and initiatives.

6.4. Public Service Data Strategy 2019-2023

Underpinning a range of the initiatives set out in this Annual Report is the Public Service Data Strategy 2019-2023. This was developed in consultation with all Departments, including the Central Statistics Office (CSO), and sets out a detailed vision, with a set of goals and actions, to deliver a more joined-up, whole-of-Government, approach to how data is used and managed within the Public Service. It aims to put in place a series of measures to improve how data is governed, managed and re-used in a secure, efficient and transparent manner for the benefit of citizens, businesses and policy makers. The strategy builds upon existing data initiatives such as the National Data Infrastructure (NDI), which concerns the identification of people, businesses and location; and the Data Sharing and Governance Act (DSGA), which sets out a legal framework for the sharing and governance of data across Government. This strategy focuses on how Government is going to build on these initiatives, and to reuse data in a secure and transparent way, delivering services and creating policies in a more modern, agile and informed manner. The strategy’s implementation will put Government in a better place to respond to service demands in an agile manner by:

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Providing more joined-up and integrated, end-to-end digital services; Better processes for policy formulation and evaluation; Improving protection and transparency of personal data processing; and Reducing administration by cutting the need for businesses and citizens to provide the

same data over and over again.

6.5. Engaging at EU and International Level

During the year, OGCIO continued to monitor developments and represented Ireland at international activities where relevant. In particular, it engaged with EU committees and working groups including:

the European Commission’s ISA2 Committee and related groups;

the European eGovernment Action Plan Steering Board;

eIDAS technical and policy committees;

the Single Digital Gateway Regulation Coordination Group; and

the European Blockchain Partnership. Engagement with the EU will continue to be an important focus for OGCIO during 2020. In addition, the engagement with the OECD has stepped up and will also be a focus of attention in 2020. Ireland ranked in 7th place of the 28 Member States, up one place from 2018, in the EU Digital Economy and Society Index 2019. This is a composite index summarising indicators on Europe’s digital performance across Connectivity, Human Capital/Digital skills, Use of Internet Services by citizens, Integration of Digital Technology by businesses, Digital Public Services, and Research and Development ICT.

6.6. GovTech

Cruinniú GovTech 2019 was held in June 2019 to analyse the justification for, and potential construction of, an Irish GovTech Eco-system. The conference fulfilled a commitment in Future Jobs Ireland 2019. Participants included representatives from across industry, academia, and the public service. The Cruinniú GovTech 2019 Report records the discussion and outputs of this gathering, the aspirations for GovTech for the next number of years, the measures that would show progress and the eight summary actions required to turn the aspirations into realities. The priority actions identified in the Report were approved by Government in December 2019.

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7 Public Procurement

7.1. Public Procurement Reform

The Office of Public Procurement (OGP) advises the Minister, Minister of State and Government on the procurement reform programme. During 2019, there was a broad based consultation on the progress made in implementing the reform programme and also on the OGP’s governance structures. Members of the Oireachtas were briefed in December. The key themes that emerged, which informed the OGP’s Draft Statement of Strategy 2020-2022, included: strengthening strategic procurement; improving service delivery and processes; embracing digitalisation; increasing SME access to public contracts; and the professionalisation of procurement. The OGP continued to promote measures aimed at supporting SME participation in public procurement and quarterly meetings of the SME Advisory Group were held. Consultations were held on establishing an office of a procurement ombudsman, which resulted in the commencement of a wider scope review of the legal and administrative provisions for remedies in public procurement processes. The threshold for advertising public contracts on eTenders, the State’s public procurement platform, continued to be kept under review. The key focus of the Interim Procurement Reform Board during the year was on developing appropriate reporting metrics to monitor procurement reform programme progress and enable a better understanding of procurement-related activity across the system. The Board also sought to enhance take-up of the purchasing frameworks offered by the OGP and sectoral Central Purchasing Bodies and examined the impacts of applying social considerations, including environmental sustainability, in public procurement. It continued to monitor operational performance, initiatives, challenges, risks and issues, particularly in relation to preparations for Brexit.

7.2. Strategic Public Procurement

The OGP continued to develop the National Public Procurement Policy Framework (NPPPF) during the year. The framework, which was updated in November, enables a more strategic, consistent and co-ordinated approach to public procurement across the public sector, by providing guidelines and setting out the procurement procedures to be followed by public bodies. Key initiatives undertaken in 2019 included the updating of Public Procurement Guidelines (January 2019) and the issue of information notes on Brexit (see below for more detail), Corporate Procurement Planning and on the Role of the Procurement Officer. The OGP also published Circular 20/19, in conjunction with the Department of Communications, Climate Action and Environment, to promote the use of environmental and social considerations in public procurement. The OGP continued its preparations for Brexit through extensive contingency planning and stakeholder engagement. It examined its framework agreements to assess the risks associated with a no-deal Brexit and engaged with key suppliers on their contingency arrangements. It provided updated Information Notes on Brexit and Public Procurement, which included a questions and answer section to deal with the common queries on Brexit from a procurement perspective. It also reminded Government departments in September of the need to identify and manage any potential procurement-related risks and to put in place detailed contingency plans where necessary. It continued to highlight the need for detailed

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localised contingency planning by public bodies and advised them to assess potential impacts on their supply chains and to put in place mitigation measures. It also established a dedicated email address to respond to concerns contracting authorities may have in relation to procurement, brexit@ogp.gov.ie

7.3. Public Service Procurement Frameworks

The Office of Public Procurement (OGP) leads on the implementation of the procurement reform programme as part of wider public sector reform. Over the course of the year it established a wide range of framework agreements and contracts to assist public sector bodies in securing goods and services. It established a total of 23 additional framework agreements, 17 discrete contracts and more than 964 competitions from framework agreements and now has in excess of 120 active framework agreements in place. As the OGP’s existing framework agreements fall due to be replaced, it takes every opportunity possible to improve the client experience. For example, in the case of the 2nd generation frameworks for laptops and computer devices set up during the year, much of the demand is now met by direct drawdown arrangements instead of more resource consuming mini-competitions that had been a feature in the 1st generation frameworks. Throughout the year, the OGP supported high level procurement and contracting strategies for projects across Government, including a number that provide critical support in the delivery of services to the citizen. For example, key contracts were put in place to provide electricity for street lighting, ambulances for the broader public sector and an asbestos surveying service that can be accessed by the HSE, OPW and local authorities. The OGP won an award in 2019 at the Facilities Management Awards for a joint project with An Garda Síochána – Facilities Management Project of the Year Health & Education.

7.4. Construction Procurement

A review of the policies and practices deployed in the procurement of public works projects was launched in March. This involves extensive engagement, both with industry stakeholders, and with the public bodies charged with the delivery of public works projects on a broad range of issues. The initial focus is on the engagement of consultancy services, which is aimed at driving better project definition, in order to provide greater certainty for all those engaged in the construction stage. The review will deliver significant changes to the Capital Works Management Framework (CWMF) over the coming years. A Position Paper on Consultancy Engagement was published in May 2019 as part of the development of the next generation of the CWMF. The Construction Policy Unit of the OGP hosts meeting of the Government Construction Contracts Committee (GCCC). This met 8 times in 2019 to discuss public sector construction related issues and to provide expert advice and technical input into the development of public sector national construction procurement policy. The Unit also participated in the Construction Sector Group and various construction industry and public sector seminars/procurement events throughout the year. Approximately 80% of spend under the National Development Plan 2018 – 2027 will be invested in works projects/delivered through the Capital Works Management Framework, managed by the OGP. The OGP established a Commercial Skills Academy to provide a

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focussed training programme to improve the capabilities of those public servants in key spending departments and public sector bodies charged with the delivery of public capital investment projects. A pilot Commercial Skills training programme of five modules addressing key commercial skills for managing capital works projects was successfully delivered in Q4 2019.

7.5. Engagement with Stakeholders

The OGP continued to engage proactively with a wide network of stakeholders, including the Oireachtas, industry representative and public sector bodies, and at international and EU level.

The OGP promoted strategic public procurement at multiple sector-based and industry-led events; it hosted the Central Purchasing Body (CPB) Network annual meeting for CPBs across the EU and EEA; it participate in Department of Business Enterprise and Innovation’s SME working group; it represented Ireland at international level and engaging with Member States on multiple issues; and held bilateral meetings with industry representative bodies on progressing the procurement reform programme.

The SME Advisory Group met 4 times during 2019, with procurement representatives from the Education, Health, Local and Central Government sectors attending the December meeting. Minutes of its meetings are on www.ogp.gov.ie.

The OGP continued to roll out the Group’s communications strategy to promote opportunities to participate in public procurement in the SME sector. Events included a Facilities Management briefing aimed at suppliers in this procurement category, Go2Tender training, Breakfast Briefings, and participation at high profile, national events. The OGP also expanded its suite of videos explaining the procurement process, as well as providing case studies of SMEs successful in securing public contracts.

Public Sector Clients: The OGPs Key Account Managers (KAMs) continued to engage with senior public sector clients to increase awareness of, and engagement with, central procurement solutions and to support the development of strategic procurement practices. The OGP’s Customer Service Helpdesk engaged directly with public sector clients and suppliers throughout 2019 and managed 11,000 queries from civil and public service bodies and suppliers. Of these, 92% of queries were resolved during the first call and 82% were resolved within 24 hours. 84% of requirements received were covered by existing OGP framework agreements. Quarterly newsletters issued to stakeholders throughout 2019. Schedules of current and forthcoming arrangements were published and updated online. A conference for public sector clients November was attended by approx. 300 representatives from across the public service.

During the year, the OGP responded to a client survey undertaken in 2018 by: providing better communications around timelines to complete competitions; simplifying processes and materials; and commissioning a new client website to provide easier access to information about framework agreements, scheduled to be launched in 2020.

The Construction Policy Unit continued to service its dedicated construction procurement email, which provides guidance and advice on works and works-related procurement and contractual matters, in addition to its CWMF website.

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7.6. Public Service Spend and Tendering Analysis

Report

In keeping with the OGP’s remit to increase transparency in public procurement and to improve data analytics in relation to public expenditure on goods and services, the Public Service Spend and Tendering Analysis Report 2017 was launched in December. This is the fifth such report and it analysed more than €4.9 billion, or 82%, of the estimated annual public procurement addressable spend under the remit of the OGP and its sector partners and almost 4,400 public service tender notices published on eTenders.gov.ie with an estimated contract value of €6.1 billion. The report showed that 94% of the analysed spend is with firms within the State and the majority is with SMEs.

7.7. Increased use of Digital Technology

Digital Transformation was identified as a major strand of the OGP’s new Draft Statement of Strategy as the organisation seeks to accelerate the digital delivery of its services in an accessible, consistent and intuitive way. OGP are seeking to streamline and improve public processes and the support structures necessary to enable transparent and efficient procurement, including through the development of a new eProcurement strategy.

The Government Strategy to increase the use of Digital Technology in key public works projects that are funded through the public capital programme continued in 2019. A key project is the rollout of the Building Information Modelling (BIM) implementation strategy. This will be phased into the procurement sector over a four-year period commencing with the large-scale projects initially as the larger technical consultancies have the capacity to deliver BIM. The recent publication of new Standards for BIM by the International Organisation Standards (ISO) will support a consistent approach to the delivery of BIM in Ireland and in a worldwide market.

A Digital Works seminar was hosted by the Construction Policy Unit in October and set out developments by public bodies that are already in train. It focused on the benefits of investing in digital solutions and was attended by senior decision makers, IT managers and budget holders from across the public services.

The OGP has established an eTenders Platform project to specify the requirements and establish a new contract for the eTenders Platform, on expiry of the current contract, in 2020. A cross-sectoral Steering Committee has been established and substantial stakeholder engagement and consultation is under way. Transitioning to the new platform will be a significant body of work, affecting all public bodies, and the provision of appropriate training will be critical to success.

The OGP’s eInvoicing Programme has already enabled Central Government bodies to receive and process electronic invoices and the programme is currently being rolled out to Sub-Central Government bodies, with a view to completion before mid- 2020. The OGP continued its communications and stakeholder engagement campaign during 2019 and shared updates and guidance with public bodies through various forums and channels and in November ran a workshop with its sector partners. Discussions have been initiated on establishing eInvoicing within a broader digital and/ or reform agenda, with the support and leadership of senior management in the civil service.

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The integrated electronic European Single Procurement Document (eESPD) solution on eTenders was launched on 28 January 2019. The eESPD is the first standardised digital eProcurement document available to all EU based tenderers. The project received €428k of European Commission funding towards the total eESPD development costs of €602k. Over the course of 2019 a total of 1,544 tenders were issued with eESPD requests and 5,534 eESPD responses were received from suppliers in respect of those tenders.

The Microsoft Dynamics 365 (D365) workflow management and CRM system supporting 150 users in the OGP’s Customer Service and Sourcing Operations functions went live on 31 January 2019. By the end of 2019, 10,365 client and supplier cases, 1, 743 client requirements and over 1,256 sourcing projects had been created on the system.

7.8. Supporting OGP Staff

The OGP continues to support its employees to develop and achieve their potential within the organisation. In 2019, almost 40% of OGP’s Learning and Development (L&D) budget was allocated to staff pursuing third level professional qualifications with 47 employees participating in its Further Education Scheme, 35 of whom (74%) pursued public procurement related qualifications. The OGP allocated 7.5% of its L&D budget to supporting specialist roles within different business units in 2019, including attendance at conferences, membership of professional bodies and subscriptions to relevant publications. Ninety-two percent of the OGP’s workforce participated in 25 workshops that helped inform the seven core themes of the new OGP People Strategy – EMPOWER. EMPOWER is underpinned by a detailed implementation plan that sets out 111 objectives under 7 core themes with timescales and measures of success for each objective (Engagement, Making a Difference, Positive Mindset, Opportunity, Wellbeing, Expertise and Recognition). The strategy was launched in March. In 2019, there were significant achievements under each of the elements of EMPOWER, in particular, developing a coaching culture, continued strong commitment towards inclusion & diversity initiatives, finalising the development of an agile leadership model and launching of new CSR initiatives. The OGP are the first Civil Service organisation to have teamed up with the Great Place to Work (GPTW) initiative to benchmark its employee support journey over the next three years. OGP’s first year GPTW score was 55%, placing the OGP above the wider public sector benchmark and the results have informed the development of the Draft OGP Statement of Strategy.

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8 Supporting Our Staff to Achieve Their Mission

8.1. People@PER Strategy

The HR Strategy Unit is a key enabler that allows the Department to fulfil its core expenditure and reform objectives by ensuring that staff can make the most effective contribution possible and possess the skills and knowledge required to meet their goals. It is responsible for the provision of a wide range of HR services and the delivery of the Department’s People@PER Strategy 2017-2020. The Strategy is based on a number of principles and provides a framework to guide the roll-out of people-centred initiatives, supporting the achievement of departmental objectives and impacting positively on our organisational culture. The themes in the strategy are aligned with the DPER Statement of Strategy 2016-2019, the Civil Service Renewal Agenda, the Civil Service People Strategy 2017-2020 and Our Public Service 2020. One of the key strategic priorities identified in the People@PER strategy is to ‘value diversity and support an inclusive workforce’. The Department is committed to championing an inclusive and diverse workforce that reflects modern Ireland and the people it serves. It strives to create a culture where all staff have equal access to opportunity and feel comfortable and confident to be themselves at work. To support this mission, a number of activities have been rolled out by the Department since 2018 to embed recognition of diversity throughout the organisation. It conducted an organisation-wide Diversity and Inclusion (D&I) Diagnostic exercise to understand the Departmental employees’ experience of diversity and inclusion and identify the current state of D&I in the Department. The cross-departmental PERspectives group, established to support the delivery of the People@PER Strategy, continued to bring the diversity agenda forward and to seek to embed an inclusive culture across the department. The Department’s work in this area reflects the Public Service Duty requirement set out in section 42 of the Irish Human Rights and Equality Commission Act 2014.

8.2. HR Business Partnering

The Business Partnering (BP) function acts as a consultancy/advisory service for senior management and staff to support them in driving change. During the year it continued to build and implement HR plans and solutions in order to achieve strategic goals and deliver results. A strategic approach to the allocation of staffing resources continued to be deployed across the Department, to ensure resources were aligned to business priorities. The Workforce Planning Group continued to meet on a regular basis to review and consider the impact of new HR policy developments / initiatives. In addition to supporting divisions through facilitating annual Business Planning Workshops, the Business Partners also supported the recruitment and placement of over 65 staff in the Department and worked closely with IGEES management on bespoke recruitment campaigns over the course of the year.

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The Unit also managed a high volume of transactional HR cases and complex employee relations queries. In addition to this, a key role of the Business Partnering team is to effectively coach and support Line Management in the implementation and application of HR policy and procedures. There continued to be a focus on sustaining stable industrial relations through the formal mechanism of Departmental Council and through ongoing engagement with staff side representatives.

8.3. HR Operations

The recruitment and selection function continued to play an important role in supporting the Department to deliver on its reform agenda. Retention continued to present a challenge and during the year the Unit recruited 67 staff and managed 53 staff exits - almost 29% of whom were staff leaving on promotion. In November 2019 a new online eRecruitment system was launched and this innovation will streamline the Department’s recruitment processes. There were 5 separate sessions of the Departmental Induction Programme given in 2019. This continued to play an important role in supporting new staff joining the Department, particularly those that are new recruits to the Civil Service. There was also an induction session for new staff joining IGEES at AO and AP levels. While the Department continued to receive a high level of positive feedback on the Induction Programme there was a review of the Induction Programme in 2019 and the new programme will be launched in 2020.

8.4. Organisational Development

Building upon the achievements of the ONE HR Learning and Development Strategy 2015-2017, the pathway for organisational learning and development continued to be developed and enhanced under the People@PER Strategy 2017-2020. Four hundred and eighty seven members of staff participated in one or more formal learning and development initiatives in 2019 with a total of 2,508 formal training days being recorded, averaging at 5 formal training days per employee. The maturity of learning and development in the Department was recognised and acknowledged when it was shortlisted for the CIPD Ireland HR Awards 2019.

Learning and development interventions were complemented by a comprehensive Post-Entry Education Scheme supporting 19 staff pursuing academic programmes in a variety of disciplines. These included finance, business and economics, HR, policy analysis, legal studies, information systems and public management. Continuing professional development (CPD) is a key component in the up-skilling of staff and their professionalisation. CPD was facilitated in each division of the Department to cover attendance at seminars, conferences, short public training programmes and subscriptions to professional bodies.

8.5. Corporate Management

The Department’s Corporate Office continued to provide corporate support to the Secretary General, Management Board and the Department more generally including administration and processing of Parliamentary Questions, Data Protection Requests, Statutory Instruments, eCabinet Memoranda and Freedom of Information Requests. It also coordinated the Department’s approach to governance, risk management and to implementing its compliance framework. Key outputs and tasks during the year included:

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Preparation of the Department’s Business Plan for 2019 and 2020 and the Annual Report 2018;

Co-ordination of the management of strategic high level and business unit level risks in the Department and of the input to the National Risk Assessment conducted by the Department of the Taoiseach;

Continued implementation of the General Data Protection Regulation (GDPR);

Commencement of a revision of the Department’s Records Management Policy;

Commencement of the development of a Business Continuity Plan;

Strengthened oversight of, and engagement with, the Bodies under the Aegis of the Department;

Agreeing a revised ICT Governance Framework; and

Progressing the roll-out of a more systematic approach to Knowledge Management in the Department.

The Finance Unit continued to enhance financial management in the Department which includes: preparing the Appropriation Accounts; creating the Department’s annual Estimates; providing business support and advice to the Department’s divisions; reviewing the accounts of Returning Officers after each electoral event; enhancing financial governance, compliance and procedures; and leading and preparing the Department in the transition to Financial Management Shared Service. The Minister’s Office continued to provide executive support to the Minister for Finance and Public Expenditure and Reform in his role as political head of these Departments, assisting him to fulfil his role as Minister and ensuring that the work of the Departments that requires Ministerial attention is processed efficiently, allowing both Departments to achieve their high level goals. The Secretary General’s Office plays a key role in terms of providing support to the Secretary General in the context of his responsibilities under the Public Service Management Act, 1997. This broad role is essential to the effective functioning of the Department and involves working closely with the Secretary General and with all Divisions of the Department. The Press Office continued to represent the vision, mission statement, values and work of the Minister for Public Expenditure and Reform in order to communicate in a strategic and effective manner with relevant stakeholders.

8.6. Internal and EU Audit

The Internal and EU Audit Unit provides an internal audit service to the Department of Public Expenditure and Reform and the Department of Finance and is the designated European Regional Development Fund (ERDF) Audit Authority for Ireland as required by European Union regulations. The Audit Unit completed ten internal audit engagements for the Department of Public Expenditure and Reform in respect of its 2019 Programme of audits. These have resulted in recommendations to improve various business-critical aspects of the Department’s processes. As part of its shared service internal audit agreement with the Department of Finance, the Audit Unit completed eight internal audit reports in respect of its 2019 programme of audits and reported results to the Department’s Audit Committee.

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As part of the 2019 audit plan, the Unit, in partnership with the HR Strategy Unit, commenced a review of culture in the Department. The work was contracted to external consultants and the results will be reported in mid-2020.

8.7. Office of the Chief Medical Officer (CMO)

In 2019, CMO medical advice was provided to a workforce of approximately 42,000 civil servants, prison officers, state industrial employees and defence industrial employees. The CMO also provided medical advice to a variety of other public sector organisations. It dealt with almost 14,000 case management episodes in 2019, as well as immunisations, audiograms and health screening, across approximately 55 Departments and Offices. New areas of work include audiogram hearing and silica dust exposure checks for OPW industrial workers and immunisations for immigration officers. The CMO was awarded Safe, Effective, Quality Occupational Health Service (SEQOHS) accreditation in June 2019. It is an international accreditation scheme for occupational health services managed by the Royal College of Physicians of London on behalf of the Faculty of Occupational Medicine. CMO preparation for this accreditation took approximately 18 months and involved a detailed onsite inspection by occupational health specialists. Accreditation ensures that the CMO is a modern and efficient service which operates in line with best international occupational health practice.