1. Title: An Analysis of the Annual Report of the Department of Performance Monitoring and Evaluations for 2012/13 financial year Presented by Mr Phelelani Dlomo 09 October 2013 Research Unit

2. SCOPE OF THE PRESENTATION 1.THE MANDATE OF THE DEPARTMENT 2. THE DEPARTMENT STRATEGIC OBJECTIVES 3. THE OVERALL BUDGET ALLOCATION VS EXPENDITURE 2012/13 4. THE OVERALL PERFORMANCE AND ACHIEVEMENTS 5. THE REPORT OF THE AUDITOR-GENERAL AND AUDIT COMMITTEE 6. THE HUMAN RESOURCES MANAGEMENT STATEMENT 7. THE ISSUES ARISING FROM THE ANALYSIS 1

3. BACKGROUND Mandate of the Department The Department (DPME) was promulgated in January 2010 to : Facilitate the development plan or delivery agreements for the cross cutting priorities or outcomes of government, and monitor and evaluate the implementation of these delivery agreements, Monitor the performance of individual national and provincial government departments and municipalities, and monitor frontline service delivery, Manage the Presidential Hotline, Carry out evaluations, Promote good monitoring and evaluation practices in government, and Provide support to delivery institutions to address blockages in delivery 2

4. THE STRATEGIC GOALS OF THE DEPARTMENT The Department’s work is organised around three core strategic goals: (1)to advance the strategic agenda of government through the development and implementation of the delivery agreements for the outcomes, monitoring and reporting on progress and evaluating impact, (2)to promote monitoring and evaluation practice through a coordinated policy platform, quality capacity building and credible data systems, and (3) to monitor quality management practices in departments as well as the quality of frontline service delivery. 3

5. OVERALL 2012/13 BUDGET ALLOCATION VS EXPENDITURE TRENDS 4 Dep. was allocated an adjusted budget of R174.1 million for 2012/13 financial year. Only spent R160.2 million or 92.2 per cent at the end of the financial year. Under spent by R13.9 million or 7.8 per cent. Increase from R3.3 million or 3.4 per cent in 2011/12 to R13.9 million or 7.8 per cent in 2012/13. The Departmental budget grew from R96.3 million in 2011/12 to R174.1 million in 2012/13. Department was not able to increase its capacity to spend the budget-hence the under expenditure. Under expenditure was identified in the following programmes:

6. 5 EXPENDITURE TRENDS PER PROGRAMME 2012/13-2011/12 Years 2012/13 2011/12 Programm e Name Final Appro p Actual Exp. Over/Under Expenditur e Final Approp. Actual Exp. Over/Under Expenditur e R’000 Admin59.853.86.035.033.01.9 OME52.548.63.929.528.9 584 M&E Syst.13.312.67713.0 57 PSO48.345,13.128.527.7 786 TOTALS174.1160.213.9 (7.8 %)96.292.83.3 (3.4%)

7. REASONS LED TO UNDER EXPENDITURE 2012/13 6 Under expenditure was due to the ff: savings due to delays in the installation of the ICT infrastructure project in programme 1 Unspent funds for 20 year review projects, and Unspent funds for conducting research on norms and standards for concurrent functions requested by FOSAD in programme 2 Finally, call centres and toll free number for Presidential Hotline costed less than it was budgeted for in programme 4

8. SOME OF ISSUES TO NOTE 7 The Department defines under expenditure as savings: It will be important for the Committee to clarify this because under expenditure is not similar to a savings and the definition of savings in this case is misleading because a savings only occur when a service has been rendered and completed at a cheaper price than it was initially anticipated. (National Treasury ENE 2010, defines savings as follows” savings arises from effecting changes in public sector spending habits and instituting cost cutting measures” For instance lower costs for call centres and toll free for the Presidential Hotline which costed less than it was anticipated “can qualify as a savings” The Department should improve its capacity to spend primarily under administration programme (R6 million underspending) The Committee should ascertain the clear timeframes for the completion of 20 year review and norms and standards for concurrent functions projects.

9. OVERALL PERFORMANCE AND ACHIEVEMENTS FOR 2012/13 FINANCIAL YEAR 8 The overall performance of the Department indicates that there were 75 planned targets for 2012/13 financial; The Department only achieved 63 or 84 per cent of the planned targets. The Service delivery improvement plan for 2012/13 was successfully implemented. Based on the main services and standards provided to the political principals Briefing notes must be submitted one day before the Cabinet meeting seat.

10. Figure: 1 Personnel Budgets Vs Payment for Capital Assets PROGRAMME 1: ADMINISTRATION Purpose- provide strategic leadership, management, administrative and financial support services to enable the Department to achieve its strategic goals. *There were 29 planned targets for 2012/13 financial year. *Only 23 planned targets were achieved, *Only 2 being none achieved and - Security Plan which forms part of the ICT governance infrastructure, was suppose to be drafted and approved in the second quarter of 2012/13. - Development indicator application which was supposed to be developed and used by Data Systems Branch staff that is responsible for development indicators publication, the sponsor deferred the project for the next financial year *Only 4 being partially achieved (1) Risk management policy, strategy and quarterly reports, this was due to the fact that assessment process for 2 programmes was not finalise and risk committee did not seat as planned, (2) 6 out of 30 standards scored less than 3 for MPAT assessment, (3) Fully functional help desk service application in the 3 rd quarter, (4) Departmental dashboard application 9

11. SOME ISSUES TO NOTE: ADMINISTRATION 10 The Department should explain the reasons led to none achievement of security plan target as part of governance requirements and give clear timeframe The Department should explain the reasons for not achieving the development indicator application as a tool for Data Systems Branch and give clear timeframe What led to the inability of the risk assessment Committee to meet on a regular basis and whether mechanisms have been put in place to ensure that such structure perform its duties accordingly Which KPA’s were most affected by the lower scoring of less than 3 during MPAT assessment, What are the time frames for finalising desk application services as this was not clear in the Annual Report?

12. P2: OUTCOMES MONITORING AND EVALUATIONS Purpose- coordinate government’s strategic agenda through the development of performance agreements between the President and the Ministers, facilitation of the development of plans or delivery agreements for priority outcomes, monitoring and evaluation of the implementation of the delivery agreements. There were 14 planned targets and only 12 or 85 per cent of the planned targets were achieved. Only 2 were partially achieved (1) 10 Evaluation reports, only 1 report was i.e approved ECD report, others were approved in 2013/14 and 1 report was with drawn for NSNP ( Annual Report indicated that the target was too ambitious) (2) Twenty year Review project, there was a target of 20 research papers per quarter starting from the third quarter which brings us to 40 research papers. The Department only achieve 22 research papers and others were achieved in 2013/14 which is outside the 2012/13 reporting cycle. 11

13. It was not clear how much budget was allocated for 2012/13 evaluation project, but we know that there is R12 million for 15 evaluation to be done in 2013/14, R15 million for 15 evaluation for 2014/15 and R20 million for another 15 to be done in 2015/16 The Committee may need to invite the Department to come and present a report on the progress report on 10 evaluations for 2012/13 This can also include a progress report on the 15 evaluations for 2013/14 and the plan for another 2014/15 target The Department should explain if the 40 research papers for 20 year reviews has been achieved. SOME ISSUES TO NOTE 12

14. Purpose- to coordinate and support an integrated government wide performance monitoring and evaluation system through policy development and capacity building In addition, the purpose is to improve data access, data coverage, and data quality and data analysis across government Department of Performance Monitoring and Evaluations There were 14 planned targets and only achieved 11 or 79 per cent targets Only 3 were partially achieved (1)Results Bill was submitted to Cabinet but not signed (2)GWM&E framework was developed and not approved by Cabinet- more consultations were still needed (3) Development indicator’s report was not published on time – Cabinet request more information to be included 13 P 3: M& E SYSTEMS COORDINATION AND SUPPORT (M&E SYSTEMS )

15. SOME ISSUES TO NOTE Considering many differing views about the Bill, the Committee should ascertain the position of the Department on this matter and whether the Bill will still follow the sequence as outlined in the strategic plan. (March 2013 cabinet approval, and passed Parliament March 2014, and ascent by President in March 2015) or whether these have been revised. The Committee should ascertain clear timeframes for finalising GWM&E framework as it was not clear in the Annual Report. 14

16. P 4: PUBLIC SECTOR OVERSIGHT Purpose-monitor the quality of management practices in departments, municipalities and the quality of frontline service delivery There were about 18 planned targets and only 17 or 95 per cent of the planned targets were achieved excessively Only 1 target was partially achieved and this work is commendable. (1)Citizens based-monitoring framework report which was supposed to be approved by Cabinet. This was not achieved because the cluster working Committee requested more recommendations to be incorporated to the framework. (2)Issues to Note What are the new timeframes for the citizen based-monitoring framework report as it was not achieved by the end of 2012/13 financial year 15

17. Issues raised by the Audit Committee Report 2012/13 financial year (1)Internal Control -The Committee was concerned about the internal controls of the Dep. Which were not adequately effective. (2) Risk Management -The Committee was concerned that the risk register was not fully effective, i.e the corporate governance set out in King Report III was not fully addressed. Although the AGSA was satisfied with the performance information but issues around fruitless and wasteful expenditure and irregular were identified, (1)Fruitless and wasteful exp of R65 000 was reported in 2012/13 (travel exp.) -in 2011/12 it was only R5 800 (it has increased when compared) (2) Irregular expenditure of R455 thousand was reported (condoned Treasury Practice) -in 2011/12 it was only R1.4 million (this has decreased) (3) No unauthorised expenditure was reported in the year under review 16 REPORT OF THE AUDITOR-GENERAL AND AUDIT COMMITTEE

18. The Department should ensure that the effectiveness of internal control is improved in order to address the levels of fruitless and wasteful expenditure as well as irregular expenditure The issue of risk register needs to be urgently attended to as part of the integral component of risk management mechanism. 17 SOME ISSUES TO NOTE

19. HUMAN RESOURCE MANAGEMENT The department has managed to reduce vacancy rate from 30 to 12 per cent. Outcome monitoring and evaluations seems to have the high vacancy rate of 22 per cent. The most affected employment levels are level 13-16 This is evident by 33 per cent vacancy rate for senior managers in corporate services during 2012/13. This is followed by specialist positions with 23 per cent vacancy rate. Department has met the 2 per cent of employing people with disability, but the level of employment was not clear. 18

20. SOME ISSUES TO NOTE 19 The Committee should ascertain whether the Department does have retention strategy to retain critical skills considering the vacancies in the specialised areas. Even though female employees enjoy the majority but they are mostly employed at lower levels (e.g clerks etc) The Annual Report was not clear about the employment levels of the people with disability

21. The Department should focus of the following: Improve the effectiveness of internal controls, Finalise the risk register as part of the risk management mechanism, Implement the security plan as a governance requirements, Present a clear progress report on 2012/13 evaluation projects, Present a clear progress report on 15 evaluation reports for 2013/14 financial year and the plan for another 15 evaluations for 2014/15- hence the allocations are already available. (the target has been revised from 20 evaluations to 15), Some targets were not defined with figures which makes it difficult to measure for instance the 115 briefing notes provided to political principals’ for Cabinet Committee meeting and other requests. (though it has been corrected in 2013/14 APP) Improve all the KPA’s that were affected by a less than 3 scoring during the management performance assessment process, (especially on strategic management 66% compliance. ) 20 SUMMARY OF ISSUES ARISING FROM THE ANALYSIS

22. THANK YOU! DANKIE! SIYABONGA! 21 THE END OF THE PRESENTATION