ATC141030: Budgetary Review and Recommendations Report (BRRR) for the: Department of Performance Monitoring and Evaluation (DPME), and national Youth Development Agency (Nyda), dated 22 October 2014

BUDGETARY REVIEW AND RECOMMENDATIONS REPORT (BRRR) FOR THE: DEPARTMENT OF PERFORMANCE MONITORING AND EVALUATION (DPME), ANDNATIONAL YOUTH DEVELOPMENT AGENCY (NYDA), DATED 22 OCTOBER 2014

The Portfolio Committee on Public Service and Administration as well Monitoring and Evaluation (the Committee), having assessed the performance of the Department of Performance Monitoring and Evaluation and National Youth Development Agency, reportas follows:

1. INTRODUCTION

Parliament derives its mandate from the Constitution of the Republic of South Africa. The strategic objectives of the Portfolio Committee are informed by five strategic goals of Parliament. The functions of the Portfolio Committee on Public Service and Administration as well as Monitoring and Evaluation are as follows:

• participate and provide strategic direction in the development of the legislation and thereafter passes the laws;

· Conduct oversight over the Executive to ensure accountability to Portfolio Committee towards achieving an effective, efficient, developmental and professional public service;

• Conduct public participation and engage citizens regularly with the aim to strengthen service delivery; oversee and review all matters of public interest relating to the public sector;
• Monitor the financial and non-financial aspects of departments and its entities and ensure regular reporting to the Committee, within the scope of accountability and transparency;
• Support and ensure implementation of the Public Service Commission (PSC) recommendations in the entire public service
• Participate in the international treaties which impact on the work of the Committee.

2. PURPOSE OF THE BUDGETARY REVIEW AND RECOMMENDATIONS REPORT

In terms of Section 5 of theMoney Bills Amendment Procedures and Related Matters Act, No. 9 of 2009 the National Assembly, through its Committees, must annually compile Budgetary Review and Recommendation reports (BRRR) that assess service delivery and financial performance of departments and may make recommendations on forward use of resources. The BRRR is also a source document for the Committees on Appropriations when considering and making recommendations on the Medium Term.

2.1 Method

The Portfolio Committee on Public Service and Administration as well as Monitoring and Evaluation compiled the 2013/14 BRRR using the following documents:

· The National Development Plan: Vision for 2030.

· Medium Term Strategic Framework.

· 2013 State of the Nation Address.

· Management Performance Assessment Tool 2013

· Strategic Plans of the Department of DPME and NYDA.

· Annual Performance Plans of the Department of DPME and NYDA 2014/15.

· 2013/14 Annual Report of the Department of DPME and NYDA.

· 2013/14 Auditor-General South Africa outcomes of audit findings.

3. NATIONAL DEVELOPMENT PLAN VISION 2030

The Department of Performance Monitoring and Evaluation supports the national development plan’s objective of a government that is accountable and transparent. The department’s focus is on strengthening accountability and improving coordination, and it works with the National Planning Commission to facilitate and monitor the implementation of the national development plan. The department is responsible for mainstreaming the national development plan into the work of government by drafting the medium term strategic framework to guide government’s programme. The strategic framework includes 14 outcomes, which form the basis of the new performance agreements between the President and individual members of Cabinet.

4. MANDATE OF THE DEPARTMENT OF PERFORMANCE MONITORING AND EVALUATION

The mandate of the Department of Performance Monitoring and Evaluation derives from section 85(2)(c) of the Constitution which provides the President to exercise authority over members of Cabinet by coordinating the functions of state departments and administration. The primary aim of the Department is to improve government service delivery through planning, performance monitoring and evaluations.The DPME has the following key mandate:

· Facilitate the development of plans/delivery agreements for cross-cutting priorities or outcomes of government, and monitor and evaluate the implementation of these plans/delivery agreements

· Put in place and manage guiding frameworks for strategic planning and annual performance planning in national and provincial departments

· Monitor the performance of individual national and provincial government and municipalities

· Monitor frontline service delivery

· Manage the Presidential Hotline

· Carry out evaluations

· Promote good monitoring and evaluation practices in government

4.1 Department priorities over the medium-term

The priorities for the 2014/15 Annual Performance Plan of the Department of Planning, Monitoring and Evaluation are informed by the 2011/12-2014/15 strategic plan and the National Development Plan as translated in the Medium Term Strategic Framework (MTSF) for 2014-19. The DPME has through its outcomes monitoring and evaluation work, developed a number of monitoring and evaluation tools to fulfil the below functions:

· Facilitation of the development of the Medium Term Strategic Framework (MTSF), delivery agreements, performance agreements between the President and his Ministers

· Assess departmental Strategic Plans and APPs to determine and enhance their alignment with the NDP, MTSF, Delivery Agreements and the budget.

· Focus on monitoring the implementation of delivery agreements to achieve government outcomes.

· Evaluate critical government programmes, policies and plans to determine their impact.

· Monitoring of management practices in national, provincial and municipalities using the assessment tools (MPAT and LGMIM)

· Promote and strengthen participatory democracy through its Citizen Based Monitoring Programme (CBM).

· The Presidential Hotline and the frontline service delivery monitoring programme (FSDM) will continue to be implemented to provide a platform for citizens to provide feedback on the quality of services they receive from government institutions.

5. MANDATE OF THE NATIONAL YOUTH DEVELOPMENT AGENCY

The NYDA is a South African Youth Agency established primarily to tackle challenges faced by the country’s young people. The institution was established to be a single, unitary structure, to address youth development issues at all spheres of government. The existence of the NYDA should be located within the broad context of South Africa’s development dynamics. Similar to many developing countries, South Africa has a large population of youth with those between the ages of 14 and 35 constituting 42 per cent of the total population.

The Agency derives its mandate from legislative frameworks, including the National Youth Development Agency Act, 2008 (Act of 2008) (NYDA Act), the National Youth Policy (2009-2014) and the draft Integrated Youth Development Strategy. The Agency assumed and improved the operational platform developed by both Umsobomvu Youth Commission and the National Youth Commission, which rendered the Agency operational with immediate effect. The mandate of the Agency are as follows:

(a) Lobbying and advocating for integration and mainstreaming of youth development in all spheres of government, the private sector and civil society.

(b) Initiating, implementing, facilitating and coordinating youth development programmes

(c) Monitoring and evaluating youth development intervention across the board and mobilising youth for active participation in civil society engagements.

6. MANAGEMENT PERFORMANCE ASSESSMENT TOOL RESULTS 2013

Management Performance Assessment Tool (MPAT) results (2013) are aligned with the performance of the annual report 2013/14 financial year. The Committee can use the results to strike the balance between audit outcomes and MPAT. A statistical analysis was conducted on how the MPAT standards relate to each other and to various independent measures such as AGSA audit results. There is a strong correlation on the MPAT scores and the achievement of annual targets of the department.

The standard relating to planning and monitoring, integrity, risk management, organisational design, human resource planning, performance management and management of unauthorised expenditure had strong relationship to the achievement of annual targets. An analysis also showed that that the standards of financial and human resource management directly influence a department’s achievement of annual targets.

The Department of Performance Monitoring and Evaluation had performed well than other government departments. MPAT results highlighted areas where the department need to strengthen such as Service Delivery Improvement Plan, Promotion of Access to Information Act, lack of approved fraud strategy, and diversity management in terms of women in strategic position and employing people with disabilities.

7. DEPARTMENT PROGRAMME PERFORMANCE

7.1 Department of Performance Monitoring and Evaluation

7.1.1 Budget Allocated and Expenditure 2013/14

The budget appropriated to the Department of Performance Monitoring and Evaluation for the 2013/14 financial year was R192 745 million. Department expenditure was R191 727 million for all the programmes which is an estimated of 99.5 per cent with a variance of R1 018 million. The bulk of the budget has been used on compensation of employees and goods and services.The Department had abolished the M&E Systems Coordination and Support Branch (Programme 3) and its functions were integrated into the remaining three programmes.The 2014/15 Strategic Plan and Annual Performance Plan reflects three programmes not four as compared to the previous years. Budget versus expenditure for the audit financial year of 2013/14 are as follows:

Appropriation per programme (R’000)

Programme R'000	Final Appropriation	Shifting of funds	Virements	Adjusted appropriation	Expenditure	Variance
1. Administration	59 595	0	1 595	58 000	59 575	20
2.Outcomes Monitoring and Evaluation	69 301	0	(2 339)	71 640	68 330	971
3. M&E Systems Coordination and Support	8 798	0	(660)	9 458	8 773	25
4. Public Sector Oversight	55 051	0	1 404	53 647	55 049	2
Total	192 745	0	0	192 745	191 727	1 018

7.1.2 Budget Allocation 2014/15

The Department of Planning, Monitoring and Evaluation’s overall budget allocated was R192.7 million in 2013/14 financial year and it has increased significantly to R208.2 million in 2014/15 financial year. The budget had increased significantly due to additional mandate added to the Department such as Assessment of Departments’ Strategic Plans, Municipal Assessment Tool and Institutional Monitoring and Evaluation. The budget of the Department of Planning, Monitoring and Evaluation is divided into three programmes which are as follows:

Table 1: Budget per programme

Programme	Allocated	Medium-Term Expenditure Estimate
R million	2013/14	2014/15	2015/16	2016/17
Administration	59.595	63.8	62.7	66.8
Outcomes Monitoring and Evaluation	69.301	78.2	83.2	88.3
Institutional Performance Monitoring and evaluation	63.849	66.2	73.8	77.6
Total	192 745	208.2	219.7	232.7

Reference source: National Treasury 2014

7.2 Programme performance

There are four programmes of the Department which are divided as follows:

7.2.1 Programme 1: Administration

The programme is responsible for providing strategic leadership, management, administrative, financial and human resource services to enable the Department to achieve its strategic and operational goals. The programme is organised as followsDepartmental Management , Internal Audit,Corporate & Financial Services and Information Technology Support.

The department achieved 18 targets and 3 were partially achieved. The Department had successfully developed and submitted Strategic Plan and Annual Performance Plan to both the National Treasury and tabled to Parliament on the appropriate time. Quarterly Risk Management Reports were approved by Risk Management Committee within one month after the end of the financial quarter. The department compiled quarterly internal audit performance reports and submitted to Audit Committee and management within one month after end of quarter. An average vacancy rate of less than 10% was achieved throughout the financial year. Monitoring and Evaluation Information Technology workshop were conducted in national and provincial departments.

7.2.2 Programme 2: Outcome Monitoring and Evaluation (OME)

The main purpose of the programme is to coordinate government’s strategic agenda through the development of performance agreements between the President and Ministers, facilitation of the development of plans or delivery agreements for priority outcomes, and monitoring evaluation of the implementation of the delivery agreements. The programme has three sub-programmes which are Programme Management for Outcomes Monitoring and Evaluation, Outcomes Support, Evaluation and Research. Planned targets were not changed.

The department achieved 17 out of 20targets. Only 3 targets were not achieved. The department had achieved the followings activities: the department translated the NDP into 14 MTSF chapters and submitted to the Cabinet Lekgotla in July 2013. An Implementation Forums Monitoring report was submitted to Cabinet by March 2014 . The department submitted quarterly monitoring reports on each outcome to Cabinet on time. The department submitted on a quarterly basis summary outcome monitoring reports covering all outcomes to Cabinet.

Evaluation studies target were not achieved as results of some departments taking longer in procuring services of the evaluators. Consideration should be taken that evaluations are complex and normally take longer than anticipated to be completed. Cabinet had taken decision that Department of Monitoring and Evaluation should procure on behalf of departments’ services of the evaluators to speed up the process.

7.2.3 Programme 3: Monitoring and Evaluation System Coordination and Support (M&E Systems)

The purpose of the programme is to coordinate and support an integrated government-wide performance and evaluation system through development and capacity building. The aim is to improve data access, data coverage, data quality and data analysis across government. Programme 3 has three sub-programmes which are as follows: Programme Management for M&E Systems, M&E Policy and Capacity Building, and M&E Data Support.

All sub-programmes have performed well both financially and non-financially. The programme had 10 planned targets, 8 were achieved and 2 were partially achieved.

The following are the achievements of the department, t he department had undertaken 5 surveys on the various elements of Monitoring &Evaluation systems in national and provincial departments. The department held 8 learning networks events. The departmenthad continuouslyembarked on provision of Management Performance Assessment Tool (MPAT) technical support and provided advice to three national departments and all Mpumalanga provincial government departments.Concerning the M&E policies and guidelines, department developed 3 guidelines which were approved by the accounting officer. There was significant improvement from 2012/13 financial year, the department published its development indicators document on their website. The performance target forms part of effective business applications output.

The department partially achieved the review of Government Wide Monitoring and Evaluation System policy framework. Cabinet requested that the document be reworked and resubmitted to Governance &Administration cabinet committee, which has been done in 2014/15.

7.2.3 Programme 4: Public Sector Oversight (PSO)

The purpose of the programme is to coordinate and facilitate public sector administration oversight services. The programme is responsible for the implementation of institutional performance assessments and for the monitoring of frontline service delivery in collaboration with other centre of government departments. There are three sub-programme under the programme 4: public sector oversight which are programme management for PSO, Institutional Performance Monitoring and Frontline Service Delivery Monitoring.

Expenditure trends of the programme over the past years illustrates that department always spent fully its allocated budget and targets.In terms of performance against planned targets, programme achieved 20 targets and only one was partially achieved.

For the first time since inception of the performance assessment, all 155 DGs/HODs at national and provincial departments signed off the Management Performance Assessment Tool reports for 2013/14 financial year. Improvements were observed on MPAT KPA from both national and provincial departments. 40% of departments showed improvement on the MPAT results. The department further compiled and submitted monitoring reports on key indicators of management performance and service delivery. The Frontline Service Delivery Monitoring (FSDM) Framework implementation tools and guidelines had been reviewed, and presented to the Monitoring and Evaluation Forum. Presidential Hotline is one of the target under programme 4. A total of 47 case studies were compiled from target of 10. Out of the complaints received, the Department had produced 8 service delivery complaints trends reports.

The department had exceeded target of 120 new sites to be visited by 196 visits conducted. Comparing to the 2012/13 financial year, there was decline from 215 baseline information of site visits. The site monitoring reports were presented to the Cabinet.Thedepartment developed 10 case studies which emanated from the site visits as part of developing knowledge and learning on the field.

8 NATIONAL YOUTH DEVELOPMENT AGENCY

8.2 Budget allocated and expenditure

8.2.1 Summary and Analysis of Annual Financial Statements

The NYDA is primarily funded through funds appropriated in terms of the annual Appropriation Act (and the Adjustments Appropriation Act). The NYDA main appropriation is transferred through Vote 1 of Presidency Office. According to the Estimates of National Expenditure, the budget allocated to the Agency was R392.7 million for 2013/14 financial year. The budget allocations are as follows over the years:

Appropriation per programme (R’000)

Description	2013/14 final budget	2013/14 Actual expenditure	Variance	MTEF Budget 2014/15	MTEF Budget 2015/16	MTEF Budget 2016/17
Economic participation	R52 000	R51 390	R609 509	R67 302	R76 350	R77 881
Education and skills	R45 800	R52 551	(R6 751 907)	R90 317	R93 317	R95 189
Health and Governance	R3 000	R4 332	(R1 332 903)	R2 000	R2 100	R2 205
Policy and research	R24 141	R44 646	(R20 505 071)	R20 000	R10 000	R11 000
Governance	R22 181	R3 150	R19 030 628	0	0	0
Total	R147 122	R156 071	0	R180 254	R181 767	R186 275

8.3 Performance Programmes

National Youth Development Agency had five programmes which are as follows:

8.2.1 Programme 1: Economic Participation

The main purpose of the programme is to enhance participation of young people in the economy through targeted and integrated programmes. The programme aim to facilitate and provide employment opportunities for young people, to enhance the participation of young people in the economy, aimed at increasing job creation, entrepreneurship participation and skills development and to provide business support to young people.

Economic participation programme had 4 set targets which were all exceeded by the Agency. However 1 target was under-achieved. The grant funding programme was implemented and rolled out for the first time. The programme is designed to stimulate entrepreneurship among South Africa youth through provision grant funding, and business development support services. A total of 765 new youth-owned enterprises were established through the NYDA grant funding, while the agency targeted 500 annually. The Agency made strides in facilitating youth placement which includes employment, internship and training opportunities. A total of 2 416 was exceeded from the set target of 1 500.

8.2.2Programme 2: Education and Skills Development

The purpose of the programme is to promote, facilitate and provide education and skills development opportunities to young people to enhance their socio-economic well-being with the objective of facilitating education opportunities. The aim is to improve access to quality education and to facilitate and implement Youth Build, job-preparedness training, the provision of scholarship and assistance to young people with rewriting their Matric.

The Agency had 5 targets on the programme, 3 which were successfully achieved. Under achievement wason young people enrolled in the NYDA Matric (Grade 12) rewrite programme. The Agency targeted 3 000 young people, however succeeded to achieve 568 (under-achieved) young people enrolled in the NYDA Matric rewrite programme. The Agency launched the Solomon Mahlangu Scholarship Programme aimed at supporting needy, but academically deserving youth with scholarship support to undertake higher education studies. Target was exceeded on the Solomon Mahlangu Scholarship Programme which is important for the country which is confronted with socio-economy challenges among the youth. 256 youth were supported through scholarship from a target of 130. Through the Scholarship the Agency in partnership with University of South Africa targeted students from rural areas who passed matric but could not afford fees at tertiary institutions.

More than 896 761 young people were supported with individual and group career guidance activities. The target was exceeded from 700 000. Youth build programme attracted more young people in ploughing back to the communities. 3 788 young people participated in the structured youth build programme whereas the Agency planned to attract 1 500 youth. The target was exceeded.

8.2.3Programme 3: Health and wellbeing

The purpose of the programme is to initiate interventions that help increasing awareness of the healthy lifestyles that promote good health practices among the youth of South Africa. The strategic objectives are as follows, to facilitate access to the health and well-being programme, and to provide health and wellbeing interventions to young people.

Programme health had 2 planned targets which were achieved. During the period under review, a total of 5 377 young people benefited on health programmes and interventions designed to improve health. The programmes targeted in-school learners, as well as those who are out of school in their communities. A total of four health and wellbeing interventions were provided to young people during the period under review. The first intervention was provided in Tshwane on 07 September 2013.

8.2.4 Programme 4: Research and Policy

The main aim of the programme is to create a body of knowledge and best practice in the youth development sector, and to inform and influence policy development, planning and implementation. The fundamental aim of this area is to ensure that policies and frameworks that drive youth development are developed, based on a body of knowledge and facts that are relevant to the developmental needs of the youth of South Africa.

The programme had 12 targets which were all achieved and some were exceeded. The Agency produced 81 knowledge management and youth-related research. During the period under review the Agency produced draft Youth Employment Strategy for 2055. A total of 100 evaluation reports for NYDA programmes and projects were completed, while 81 knowledge management and youth-related research were produced. The agency achieved its 3 targets on policies and legislative documents such as the Draft Youth Work Profession Bill which was approved by the Board. The year under review marked establishment of the Youth Development Institute which was developed in partnership with University of Johannesburg. The Institute would provide much-needed, high quality research to inform youth development programme planning and policy making.

Among achievements of the Agency was to lobby for the establishment of youth directorates in 79 private and public entities. The target was exceeded due to buy in from the municipalities to formulate the local youth councils. Social media play crucial role in ensuring accessibility of information. The Agency used social media platforms as an advocacy to attract youth in accessing information. 1 060 461 young people access NYDA information through access points.

8.2.5 Programme 5: Governance

The goal is to efficient and effective utilisation of resources through provision of junctions governance, technology and systems, business operations systems, human capital, financial management system that adhere to relevant legislative requirements for public funded entities.

Under the governance programme, the Agency had 4 targets and 3 were achieved. Only 1 target was notachieved. A total of 32 access points were established during the period under review through partnership that were concluded with other stakeholders. An Information Communication Technology (ICT) analysis report was produced. A total of 486 staff members were trained and capacitated to deliver on NYDA products and services. The annual target of 400 employees trained was achieved and exceeded as result of performance enhancement through training and deployment of participants in the Namibian-SA Exchange Programme and CEDO in the NYDA branches.

9 AUDITOR-GENERAL OUTCOMES

The Auditor-General have audited the financial statements of the Department of Performance Monitoring and Evaluation which comprise the appropriation statement, the statement of financial position as at 31 March 2014. The financial statements are in accordance with Modified Cash Standards prescribed by National Treasury and the requirements of the Public Finance Management Act (PFMA).

9.1 Predetermined objectives

The Auditor-General did not identify any material findings on the usefulness and reliability of the reported performance information for the selected programmes.

9.1.1 Achievements of planned targets

A total of 75 planned targets, 68 were are achieved and 2 were partially achieved.The Department of Performance Monitoring and Evaluation had received clean audit for the 2013/14 financial year.

9.1.2 Adjustment of material misstatements

The AG identified material misstatements in the annual performance report submitted for auditing on the reported information of Programme 2: Outcomes Monitoring & Evaluation, Programme 3: Monitoring & Evaluation System Coordination and Programme 4: Public Sector Oversight. The management of the department subsequently corrected the misstatements. The AG did not identify any material findings on the usefulness and reliability of the reported performance information.

9.1.3 Compliance with legislation

The department complied with applicable laws and regulations regarding financial matters, financial management and other related matters.

9.1.4 Internal Control

Internal control in the department were considered to be relevant to AG audit of the financial statements, performance report and compliance legislation. The AG did not identify any significant deficiencies in internal control.

10 OBSERVATION

The Committee noted the progress and improvements on the achievements of the set targets for 2013/14 financial year. The Committee commended the Department of Monitoring and Evaluation on the response level of Management Performance Assessment Tool 2013 report. The Department should share the MPAT outcomes with other Portfolio Committees to empower them in improving areas of weakness in management and financial practices in their respective departments when conducting oversight.

11 RECOMMENDATIONS

11.1 Department of Performance Monitoring and Evaluation

The Committee recommendsthe following:

11.1.1 The National Treasury should provide necessary funding to the DPME in order to assist the department formore staffrecruitto deliver on its mandate of monitoring the municipalities, to strengthenthe planning and secretariat.

11.1.2 The Department shouldprioritise the implementation of the Distressed Mining Communities projects in accelerating services towards improving the lives of mining communities.

11.1.3 The Department should work towards achieving a target of 50 per cent on women in SMS position and must go beyond the achieved 2 per cent of recruiting people with disabilities.

11.2 National Youth Development Agency

The Committee recommends the following:

11.2.1 NYDA should increase its accessibility and visibility in the rural areas.

11.2.2 NYDA should have Memorandum of Understanding with Municipalities, Thusong Service Centres and Tribal Authorities in establishing functional youth offices.

11.2.3 The vacant 110 positions should be reviewed and filled if they are key in terms of service deliver.

11.2.4 NYDA should ensure that grant funding is equitably shared across all the nine provinces. NYDA should ensure that the provision of grant funding contributes towards the priorities of the National Development Plan in particularly unemployment, eradication of poverty and economic transformation among the youth.

11.2.5 NYDA should intensify the awareness of substance abuse.

11.2.6 The DPME should speed up the process of reviewing the National Youth Policy and National Youth Development Agency Act 54 of 2008 as part of reengineering its youth mandate. The Agency should account to the Committee about the reviewed policy when completed in March 2015.

11.2.7 The National Treasury should provideadditional R200 million to the Agency on conditions that the fundswould only be utilised for programmes that are aimed atimproving services tothe youth.

11.2.8 The NYDA should report on the deliverablesfor both financial and non-financial of itsprogrammes on a quarterly basis to the Portfolio Committee.

12 Conclusion

The Portfolio Committee believes that if these recommendations could be implemented, there will be greater progress concerning the objectives of the Department in monitoring and evaluating the entire public service.The National Youth Development Agency must prioritise the implementation plan of the turnaround strategy to overcome challenges confronted by the youth. The Portfolio Committee willconductits oversight to ensure that that objectives and time frames set by the sector are met.

Report to be considered.