Strategies for improving M&E in South Africa 19 August 2009

Outline Treasury ‘s role in the M&E Budgeting and M&E Challenges and shortfalls Improving the system (Financial Management Improvement Programme-FMIP) -improving budget programme structure -managing programme performance information

Treasury ‘s role o the M&E Participate in the GWM&E forum; coordinated and led by the Presidency. Mandated to ensure that information on inputs, activities, outputs and outcomes underpins :planning :budgeting :accountability reporting :equity and effectiveness :as well as expenditure control

Budgeting and M&E Performance information Treasury emphasises that performance information becomes an integral part of budgeting to indicate as to whether allocated resources are used as planned and to obtain objectives intended for. This requires that budgets provide an outline of performance information such as targets, indicators, time-frame, and report on outcomes and outputs. As a result, Framework for Managing Programme Performance Information (FMPPI) was issued to assist departments in setting out targets and indicators that would indicate progress in the implementations of the their mandates.

Reporting on performance information Performance information forms part of the budgeting process in the MTEF, and also the ENE. Accurate performance information has a potential to assist in deciding which programmes are not performing optimally (and require intervention) and which ones are performing better and what lessons can be drawn from that). This can be seen as the first step towards self-evaluation of programmes and therefore re-prioritisation of resources during the budget process (MTEF). The reporting of performance information in the ENE provide a basis for a comprehensive review of government programmes. As part of the Adjusted Estimates of National Expenditure (AENE), departments are now requested to provide mid-term reporting; indicating progress in terms of implementing their mandate. In addition to performance information, more detailed reporting on expenditure is required from departments on a monthly, quarterly and annual basis, as stated in the PFMA.

Challenges and shortfalls Accuracy of information Capacity when it comes to selecting indicators Misaligned budget programme structures. Lack of properly articulated strategic planning Difficulty in linking indicators to money Malicious compliance

Improving the system More interaction between Treasury and departments when it comes to selecting performance and operation indicators Improved programme budget structure: Treasury is currently finalising guidelines for programme budget structure (FMIP) Treasury is also involved in a project Standard Operating Procedure Manual for managing programme performance information (FMIP)