1. STANDING COMMITTEE ON APPROPRIATIONS ANNUAL REPORT PRESENTATION 18 OCTOBER 2012 DEPARTMENT OF PERFORMANCE MONITORING AND EVALUATION

2. The Presidency: Department of Performance Monitoring and Evaluation 2 Contents 1.Overview 2.The Annual Report Key achievements per strategic outcome oriented goal Overview of the Service Delivery Environment for DPME Summary of performance per programme Financial information and audit report HR information

3. The Presidency: Department of Performance Monitoring and Evaluation 3 Overview During 2010/2011, PME unit was part of the Presidency vote 2011/2012 was first year for DPME to have own budget, this is the first annual report produced by the department During 2010/11, focus of department was on putting in place performance and delivery agreements related to the 12 priority outcomes During 2011/12 the focus widened to include monitoring of the implementation of the delivery agreements and the following additional PME initiatives: Management Performance Assessments of national and provincial departments National Evaluation Policy Framework, national and provincial evaluation plans, and evaluations Front-line Service Delivery Monitoring Programme The Presidential Hotline (which was transferred to DPME)

4. The Presidency: Department of Performance Monitoring and Evaluation 4 The Annual Report Key achievements per strategic outcome oriented goal

5. The Presidency: Department of Performance Monitoring and Evaluation 5 Strategic outcome oriented goals 1.To advance the strategic agenda of government through the development and implementation of the outcomes approach, 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 3.To conduct institutional performance monitoring and front line service delivery monitoring

6. The Presidency: Department of Performance Monitoring and Evaluation 6 Key achievements: Goal 1  Institutionalised quarterly monitoring of the delivery agreements by Cabinet and initiated reviews of the delivery agreements based on M&E findings  Provided the political principals in the Presidency with briefing notes on matters before Cabinet  Carried out a Mid-Term Review that provided an assessment of progress towards meeting government priorities  Produced the National Evaluation Policy Framework  Completed an evaluation of the Early Childhood Development Programme  Completed a study of the quality of sanitation, on request of the Human Rights Commission  Assisted the political principals in the Presidency with technical support for their hands-on monitoring visits

7. The Presidency: Department of Performance Monitoring and Evaluation 7 Key achievements: Goal 2  Convened national and provincial monitoring and evaluation forums  Established M&E learning networks and developed M&E training courses for officials  Managed inter-departmental data forums linked to improving data for the 12 outcomes  Developed guidelines for other departments on various aspects of M&E  Provided the Programme of Action platform for the outcomes  Produced the 2011 Development Indicators

8. The Presidency: Department of Performance Monitoring and Evaluation 8 Key achievements: Goal 3  Developed and implemented a Management Performance Assessment Tool (MPAT)  Obtained agreement with all provinces to implement a joint programme of annual management performance assessments of national and provincial departments  Carried out assessments of 27 national departments and 60 provincial departments by the end of March 2012 (103 national and provincial departments, eventually completed assessments for 2011/12)  Developed high-level proposals for linking results of assessments of departments to assessments of Heads of Department  Instituted monitoring of a range of indicators of the performance of national and provincial departments, on behalf of the Forum of South African Directors- General (FOSAD)

9. The Presidency: Department of Performance Monitoring and Evaluation 9 continued…..  Assessed draft Annual Performance Plans of 33 national departments and gave feedback to accounting officers on whether their APPs reflect commitments to relevant Delivery Agreements  Developed and implemented a Frontline Service Delivery Monitoring Programme and conducted more than 100 unannounced monitoring visits  Developed improvement plans to enhance the efficiency and effectiveness of the Presidential Hotline and achieved a case resolution rate of 82% by March 2012, from 71% in March 2011

10. The Presidency: Department of Performance Monitoring and Evaluation 10 Overview of the Service Delivery Environment  Problem statement:  Effective and efficient service delivery remains elusive in many areas  Current levels of service delivery sometimes do not meet legitimate expectations of citizens  Role of PM&E in addressing the problem statement:  Increase strategic focus of government and increase coordination and cooperative governance through outcomes and delivery agreements  Assess quality of management practices and assess quality of service delivery at the coal face to improve implementation  Change management culture from focusing on activities to focusing more on results  Increase use of evidence to improve policy-making, planning, and implementation  Develop a culture of continuous improvement

11. The Presidency: Department of Performance Monitoring and Evaluation 11 Summary of Performance per Programme

12. The Presidency: Department of Performance Monitoring and Evaluation 12 Programme 1: Administration 4 targets partially achieved were: Risk management strategy and plan developed and implemented (p.20) The department was still in the process of building capacity for risk management, a risk manager has since been appointed Communication strategy and plan developed and implemented (p.21) Lack of capacity which has since been addressed, communication plan is now in place Procurement plan developed and implemented. Suppliers database developed (p.22) Suppliers database was completed. Procurement plan not completed due to delays in finalizing ICT procurement plans. The procurement plan has since been completed Establishment of a comprehensive asset register. Implementation of asset management policy framework (p.22) Asset register was not complete due to delays in verification process for assets transferred from the Presidency. This has since been completed Number of targets20% Targets achieved1680 Targets partially achieved420 Targets not achieved00

13. The Presidency: Department of Performance Monitoring and Evaluation 13 Programme 2 : Outcomes Monitoring & Evaluation 6 targets partially achieved were: National departments and Premiers’ Offices supported to translate delivery agreements into provincial targets for concurrent functions (p.24) Some provincial departments did not set provincial targets related to all the targets in all the delivery agreements. DPME continues to engage with provinces in this regard Evidence base for outcome monitoring researched and strengthened, and tools developed and refined (p.24) Some departments had not yet sufficiently strengthened their data collection and management systems. This is an on-going challenge and DPME is offering advice to departments to address this Number of targets15% Targets achieved960 Targets partially achieved640 Targets not achieved00

14. The Presidency: Department of Performance Monitoring and Evaluation 14 continued…. Outcomes approach promoted and communicated (p.24) Substantial work was done in communicating with departments, but this was rated as partially complete because there was still a need for further communication. The department’s communication plan has since been finalised Report on alignment of the APP and strategic plan of 45 national departments to the outcomes (p.24) Some departments did not submit APPs to DPME timeously for review. However, assessments were done for all the 33 APPs which were submitted to DPME Refinements to delivery agreements initiated and reflected on the POA (p.25) The review of the delivery agreements has taken longer than expected in some Implementation Forums Quarterly progress updated on POA, and quarterly reporting on progress to cabinet committees facilitated (p.26) Not all fields were fully complete on the POA due to difficulties in obtaining detailed reports from departments – this is sill the situation, but higher-level reports are now being prepared for the POA

15. The Presidency: Department of Performance Monitoring and Evaluation 15 Programme 3: M&E Systems and Business Systems & ICT Of the 11 partially achieved targets, 9 relate to the targets for business and ICT (p.29-30): Delays in finalisation of a detailed IT infrastructure design by SITA – has since been completed Modification to DIRCO’s Bilateral Agreement Database to accommodate M&E functionalities DPME is still engaging with DIRCO regarding possible support for developing a system for monitoring of bilateral agreements 12 outcomes spatially enabled, partially achieved due to non-availability of disaggregated data for some outcome. There are on-going engagements with departments in this regard Attend 90% of scheduled policy formulation/ discussion meeting and review all draft components of national GIS policy Review not completed on time as questionnaire component of the project took longer than anticipated. This has now been completed by DRDLR Number of targets34% Targets achieved1853 Targets partially achieved1132 Targets not achieved515

16. The Presidency: Department of Performance Monitoring and Evaluation 16 continued… Information/data management component of information strategy developed and implemented Draft Information/Data Strategy completed but not finalised timeously. Has since been finalised File plan completed and implemented Archives and Services Council approval for file plan took longer than expected. Has since been completed and is in the process of being implemented The other 2 partially-achieved targets relate to M&E systems coordination and support: 12 POA reports produced quarterly (p.27) Difficulties were experienced in obtaining sufficiently detailed information for some outcomes for some quarters, to enable completion of all the fields in the POA 20 year review planned: task teams, steering committee established. Technical support in developing evaluation proposals (p.29) Establishment of steering committee and task team had to await approval of Cabinet. This has since been obtained and the 20 year review is under way

17. The Presidency: Department of Performance Monitoring and Evaluation 17 continued… 5 targets not achieved were: Framework on modeling needs of DPME (p.29) It was decided that this is not a priority, and it has been replaced by other projects Integrated DPME projects dashboard (p.29) The project has been postponed pending the completion of subsystems such as the MPAT system, and will be reviewed once these are complete Stakeholder workshop held for M&E IT guidelines and draft M&E IT guidelines developed (p.30) Other projects were prioritised due to lack of capacity. The stakeholder workshops have since been held and the guidelines have been finalised, and DPME is in the process of supporting departments and provinces to implement them 100 % review of all drafted components of GIS (p.30) As previously indicated, the review of the policy took longer than expected but it has since been completed

18. The Presidency: Department of Performance Monitoring and Evaluation 18 Programme 4: PSAO Above targets include the Presidential Hotline which was transferred to DPME on 01 October 2011. Presidential Hotline targets are from the revised strategic plan which was submitted to Parliament in March 2012. The 6 partially achieved targets relate to: 45 APP assessments (p.31) Some departments did not submit their APP’s within the required National Treasury planning timeframes to enable assessment. DPME assessed all submitted APPs Undertake a review of the content and process for HoD performance assessment by Dec 2011 (p.32) Consultation process took longer than envisaged. Has since been completed and Cabinet has approved a revised system for performance assessment of HoDs Number of targets17% Targets achieved1165 Targets partially achieved635 Targets not achieved00

19. The Presidency: Department of Performance Monitoring and Evaluation 19 continued… Develop frameworks for DPME FSD monitoring and citizen-based FSD monitoring (p.32) Due to capacity constraints the finalisation of these frameworks was delayed. The FSD monitoring framework has since been finalised and the FSD monitoring programme is being implemented. The citizen-based monitoring framework is more complex than initially envisaged and is currently being developed Develop delivery support framework by September 2011 (p.33) Delayed due to capacity constraints. Has since been completed Three support interventions facilitated, linked to FSD and management weakness (p.33) MPAT and FSD programme commenced in mid-2011, and the focus in the first year was on conducting the assessments to create baseline findings. A wider range of support interventions have since been put in place

20. The Presidency: Department of Performance Monitoring and Evaluation 20 Department Overall Pr.1Pr. 2Pr. 3Pr.4Tota l % Number of targets 2015341786100% Targets achieved16918115463% Targets partially achieved 461162731% Targets not achieved 005056%

21. The Presidency: Department of Performance Monitoring and Evaluation 21 Financial information and Audit report

22. The Presidency: Department of Performance Monitoring and Evaluation 22 Annual Financial Statements: Expenditure Per Programme Prog Expenditure per Programme ('000) Final Appropriation Actual Expenditure Variance Variance as % of Final Appropriation 1Administration 22 038 21 370 - 668 -3.0% 2OME 23 143 22 560 - 583 -2.5% 3M&E Systems 22 442 21 118 - 1 324 -5.9% 4Public Sector Oversight 28 579 27 793 - 786 -2.8% TOTAL 96 20292 841 - 3 361 - 3.5% The Department is aiming to reduce the overall variance to less than 2% in the current financial year, and has introduced more regular monitoring of expenditure versus budget to achieve this.

23. The Presidency: Department of Performance Monitoring and Evaluation 23 Annual Financial Statements: Areas of under-expenditure Expenditure per Economic Classification ('000) Final Appropriation Actual Expenditure Variance Variance as % of Final Appropriation Current Expenditure88 61187 028- 1 583-1.8% Compensation of employees52 98351 673- 1 310-2.5% Goods and services35 59835 325- 273-0.8% Payments for capital assets7 591 5 813- 1 778-23.4% Machinery and equipment 5 942 4 754 - 1 188-20.0% Software and other int. assets 1 649 1 059 - 590-35.8% TOTAL 96 20292 841- 3 361 -3.5% Main areas of under-expenditure: R1,290,975 for computer equipment ordered before the end of the financial year but delivered after 31 March 2012 R536,962 for development of computer applications contracted but not completed

24. The Presidency: Department of Performance Monitoring and Evaluation 24 Report of the Auditor-General (p.44) Opinion (point 6 p44): unqualified Findings: Para- graph FindingDepartment’s corrective action and comments 14Performance targets not time bound The Department has improved its performance targets in its 2012/2013 APP 16Achievement of planned targets: 39% not achieved As indicated above, approximately 63% were achieved and 30% were partially achieved. The Department deliberately sets itself ambitious targets, and explanations have been provided where targets have not been met 18Financial statements not prepared in all material respects in accordance with requirements of PFMA but were subsequently corrected See table overleaf

25. The Presidency: Department of Performance Monitoring and Evaluation 25 continued…. The table below provides the details of the issues related to the finding in paragraph 18 regarding misstatements corrected: IssueAG findingAmount involved (R) Reason and/or management action taken Hotline assetsNot included in the asset movement schedule as a disclosure note to the financial statements 322 000Supporting documentation related to transfer of assets associated with Presidential Hotline only received after end of financial year. Employee Benefits Incorrectly disclosed103 402Typing error. Department has introduced additional quality control measures. AccrualsUnrecorded liabilities identified 160 000Relates to travel costs incorrectly disclosed as commitments instead of accruals. Will be correctly disclosed in future. Intangible assetsInternally generated intangible assets not included in the disclosure notes to the financial statement 1 300 000Value of computer software transferred from Presidency omitted from financial statements in error. Was corrected.

26. The Presidency: Department of Performance Monitoring and Evaluation 26 continued… Para- graph FindingDepartment’s corrective action and comments 19Accounting officer did not take reasonable steps to prevent irregular expenditure The six cases of irregular expenditure disclosed on p.83 of the report are all related to procurement: R34 000 relates to an order for a conference venue for which the CFO’s approval was not obtained as required by the department’s internal financial delegations. This has been condoned by the Accounting Officer in terms of the PFMA. The problem was a result of a standard form not having a place for the CFO to sign. This has since been corrected. R524 000 relates to the development of the POA software, where the CFO provided approval (within his delegated powers) for deviating from tender procedures, but did so without sufficient documented motivation. This deviation related to obtaining quotations rather than going out on open tender, for which the threshold value is R500 000. Originally it was thought that the project cost would not exceed R500 000, and the original contract was less than R500 000. However, variations related to additional requirements were made during the implementation of the project, which increased the cost to R524 000. In future, the CFO will ensure that sufficient documented motivation is filed for such approvals.

27. The Presidency: Department of Performance Monitoring and Evaluation 27 continued… Para- graph FindingDepartment’s corrective action and comments R101 000 relates to non-compliance with the provision of the PPPFA which requires the supplier to complete a standard form providing details of their BBBEE status. The Department received the form from the suppliers and used it to complete the bid evaluation, but subsequently misplaced the forms for the three bidders. In order to ensure that this does not happen again, a checklist has been implemented to ensure that all documentation is filed before a procurement process is finalised. The CFO sent a memorandum to all SCM staff emphasising the importance of ensuring that all documents are properly filed. R137 000 and R247 000 relate to two orders placed by the Presidency while DPME was part of the Presidency vote, which were subsequently paid for by DPME. Supporting documentation was not included in the batches forwarded to DPME by the Presidency. R408 000 relates to expenditure on leases for photocopying machines and 3G data modems. These are automatically defined as finance leases which have been condoned by National Treasury.

28. The Presidency: Department of Performance Monitoring and Evaluation 28 continued… Para- graph FindingDepartment’s corrective action and comments 20Persons in charge at pay points did not always certify that employees receiving payments were entitled thereto The department’s organisational structure and delegations changed with effect from 01 October 2011. This resulted in misalignment between payroll control procedures and delegations. This was corrected by implementing new payroll control procedures and delegations aligned to the new organisational structure, with effect from 01 April 2012.

29. The Presidency: Department of Performance Monitoring and Evaluation 29 Human Resource (HR) Information

30. The Presidency: Department of Performance Monitoring and Evaluation 30 Human Resource Management Employment and Vacancies: Vacancy rate at the end of the reporting period was - 30% (currently 15%) In the latter part of the reporting period the structure was revised and the post establishment increased from a 141 posts to 195 The department also only had funding for 141 posts for 2011/2012 (additional funding to fill the new positions only became available at the beginning of the 2012/2013 financial year) Filling of Top Management Positions: Two Deputy Director-General posts were reported as vacant during the reporting period The posts were advertised, however challenges were experienced in recruiting the right candidates for the post The posts were re-advertised during the latter part of the reporting period, and the Department was able to successfully appoint one candidate into the post The filling of the other Deputy Director General post is currently at Cabinet for approval

31. The Presidency: Department of Performance Monitoring and Evaluation 31 HRM continued… Employment Equity: The Employment Equity Plan of the Department was approved for implementation from 01 October 2011 The Department is currently focusing on recruiting more females and Africans in Senior Management Positions to ensure set targets are achieved At the end of the reporting period, 34% of SMS were female and 53% were African This has now improved to 42% of SMS being female and 58% of SMS being African The Department had 1.5% of employees with disability at the end of the reporting period Efforts and attention are being given to this area to ensure the 2% target is achieved

32. The Presidency: Department of Performance Monitoring and Evaluation 32 HRM continued… Labour Relations: Disciplinary Action – no cases Grievances – 1 case and was resolved within the specified time frames Skills Development: Planned training interventions for employees – 84 Actual training interventions for employees including interns – 81 Utilisation of Consultants: Service providers were used on specific projects Since these skills were not required long term and were related to specific projects requiring specialised skills, it was considered more efficient and cost- effective to appoint service providers than to hire permanent staff

33. THANK YOU!