ATC180425: Report on Budget Vote 8: Department of Planning, Monitoring and Evaluation: date 25 April 2018

Public Service and Administration, Performance Monitoring and Evaluation

[The following report replaces the report of the Portfolio Committee on Public Service and Administration as well as Planning Monitoring and Evaluation, which was published on page 59 of ATC No 50 dated 26 April 2018, and again on page 240 of ATC No 53 dated 3 May 2018. The contents of those reports were correct, but the headings referred to Vote 10 instead of Vote 8.]

 

Portfolio Committee on Public Service and Administration as well as Planning Monitoring and Evaluation

REPORT ON BUDGET VOTE 8: DEPARTMENT OF PLANNING, MONITORING AND EVALUATION: DATED 25 APRIL 2018

 

  1. BACKGROUND

The Portfolio Committee on Public Service and Administration as well as Planning Monitoring and Evaluation (hereinafter referred to as the Portfolio Committee) having considered the directive of the National Assembly to consider and report on the Strategic Plans, Annual Performance Plans and Budget allocations of the Department of Planning, Monitoring and Evaluation (DPME) and the National Youth Development Agency (NYDA) tabled by the Minister of Planning Monitoring and Evaluation in terms of the Public Finance Management Act (Act No 32 of 2003), reports as follows:

  1. INTRODUCTION

The Public Finance Management Act, section 27 clearly stipulates that the Minister must table the annual budget for a financial year in the National Assembly before the start of the financial year. In terms of section 10 (1) (c) of the Money Bills Amendment Procedures and Related Matters Act, No 9 of 2009, the relevant members of Cabinet must table updated strategic plan and annual performance plan for each department, public entity or institution, which must be referred to the relevant Committee for consideration and reporting.

In considering the annual performance plans, the Committee will ensure that a department and its entity budget allocation serve the needs and aspirations of the people. Budget allocation serve as a key instrument for government to promote socio-economic development efficiently. Budget allocation plays a critical role as an economic instrument of the government, as it reflects the country’s socio-economic policy priorities by translating priorities and political commitments into expenditures. Budget serves as a vital tool to operationalise government activities towards the achievement of its intended priorities. Furthermore, the budget highlights the constraints and trade-offs in policy choices.

In view of the above, the Committee had on 18 April 2018 received presentations made by the Director-General of the Department of Planning Monitoring and Evaluation and the Chief Executive Officer of the NYDA on the Annual Performance Plans for 2018/19 financial year. The Department of Planning Monitoring and Evaluation was involved in a process of reconfiguration and revised the mandate which has resulted in the restructuring of the organisational structure, its programmes and budget. This review resulted into significant changes to the organisational structure of the department and a subsequent reconfiguration of the budget programme structure, which has increased the department programmes from five to seven. The new organogram of the DPME was approved by the Minister of the Department of Public Service and Administration in 2018 for implementation.

The main priorities of the Department over the next five years will be to ensure departments align their plans and budget with the MTSF and NDP as well as to coordinate, monitor and evaluate the implementation of government departments in achieving the delivery outcomes. More emphasis will be placed on monitoring performance of local government.

  1. OVERVIEW OF THE DEPARTMENT OF PLANNING MONITORING AND EVALUATION

The Department of Planning, Monitoring and Evaluation plays a direct, guiding role in government’s long term planning, strategic planning and annual performance planning. This role requires providing evidence-based input on cross-cutting issues that have long term implications for development. The revised Green Paper on the National Planning Commission identifies 13 thematic areas requiring a concerted government effort, including employment, food security, energy security and water security. The national income dynamics survey, a longitudinal study implemented in 2008 to monitor human development and poverty transitions in South Africa, is another example of how research is used to inform policy.

The Department contributes to the objective of responsiveness of public servants and accountability to citizens through making announced and unannounced visits to service delivery facilities. Furthermore, the Department evaluates service delivery including response to calls logged with the Presidential Hotline. 

 

  1. LEGISLATIVE MANDATE

The mandate of the Department is derived from Section 85(2) of the Constitution of the Republic of South Africa which stipulate that “the President exercises the executive authority, together with the other members of the Cabinet, by (b) developing and implementing national policy and (c) coordinating the functions of state departments and administration. Based on the Constitutional mandate embedded in section 85(2), the following are the key mandates of the DPME:

  • Facilitating the development of long–term and medium-term plans or delivery agreements for the cross cutting priorities or outcomes of government.
  • Monitoring the implementation of the strategic and operational plan as well as delivery agreements.
  • Assessing departmental Strategic Plans and Annual Performance Plans to ensure alignment with long term and short term plans of government.
  • Monitoring the performance of individual national and provincial departments and municipalities.
  • Monitoring frontline service delivery mechanisms.
  • Managing the Presidential Hotline, assessing the logs and making referrals to relevant departments.
  • Carrying out evaluations of key government programmes.
  • Promoting good planning and Monitoring and Evaluation (M&E) practices in government.

 

  1. Strategic goals of the Department of Planning, Monitoring and Evaluation

The strategic priorities of the Department as identified for the 2015/2020 financial year are as follows:

  1. To ensure an efficient and effective administration that complies with legislation and good corporate governance principles.
  2. To strengthen the linkages between the planning and monitoring and evaluation functions.
  3. Policies, plans and budgets of government departments and entities are evidence-based integrated and aligned to the NDP
  4. Effective Monitoring and Evaluation and Supervision of implementation of government policies and plans
  5. Broader society is mobilised and engaged in the development and advancement of NDP/MTSF
  6. To ensure stronger focus on outcomes of government programmes and impacts on citizens.
  7. To enhance the implementation of the National Development Plan (NDP 2030).
  8. To support M&E practices as a means to improve performance of government.
  9. To ensure synergy and improved use of resources for effectiveness and efficiency.
  10. To ensure effective and efficient approaches to interacting with departments.
  11. To improve responsiveness to the needs of the public and enhanced ability of government to deliver its electoral mandate.
  12. Youth development mainstreamed across government

 

5.Overview of the 2018/2019 financial year

The Department has the following activities planned for 2018/19:

5.1 Improving and strengthening government planning and coordination

The key focus for the Department over the medium term is to strengthen its planning functions by transforming it into government-wide system that is evidence based. In addition, the Department will continue conducting assessments on the Strategic and Annual Performance Plans of national departments to ensure it alignment with the priorities of the NDP. The Department will also, in consultation with the National Treasury delivery priorities. These activities are budgeted for in the Planning Coordination Sub-programme of the National Planning Coordination Programme. Expenditure in the Sub-programme is expected to increase from R208.8 million in 2017/18 to R50.6 million in 2020/21.

5.2 Enhancing and planning coherence sector monitoring of short-term and medium to long term goals

The Department will continue to review, monitor and support the implementation of 2014-2019 Medium-term Strategic Framework by government departments and other government institutions. It will design and implement strategic interventions to support and unblock implementation. These activities are budgeted for in in the Sector Planning, Monitoring and Intervention Support-programme of the Sector Planning and Monitoring Programme Expenditure in the sub-programme is expected to increase from R45.2 million in 2017/18 to R57.8 million.

5.3 Improving the capacity of State Institutions

Pursuant to the objectives articulated for outcomes 9 and 12 of the Medium-term Strategic Framework, the Department aims to provide support where weak institutional capacity results in service delivery failures.  The Department will support government departments and the executive in institutional performance management., payment of suppliers within 30 days and clean audit drive. These activities are budgeted for in the Public Service and Local Government Monitoring and Support Sub-programme of the Public Sector Monitoring and Capacity Development Programme. Expenditure in the Sub-programme is expected to increase from R27.1 million in 2017/18 to R37 million in 2020/21.

5.4 Developing intervention programmes to support service delivery

The Department will over the Medium Term, monitor the impact of policy priorities at the coalface of service delivery through various frontline monitoring programmes. Frontline monitoring programmes include designing and implementing appropriate intervention strategies when plans, budgets and programmes fail to achieve policy intent.  This will drive continuous improvement in government performance as the evidence and the insight is used to inform policy reviews. These activities are budgeted for in the Frontline and Citizen-Based Service Delivery Monitoring and Complaints Resolution Sub-programme in the Frontline and Citizen-Based Service Delivery Monitoring programme. Expenditure in the Sub-programme is expected to increase from R50.6 million in 2017/18 to R64.6 million in 2020/21.

5.5 Evaluations

The Department will continue to focus on maximising the use of evaluation and research to generate rapid and relevant evidence to inform planning and monitoring as well as interventions required to bring change and improvements. In addition, the Department will also work towards improving centralised research and knowledge management support in order to develop and maintain evidence based policy development, planning, implementation, monitoring and review. These activities are budgeted for in the Evaluation, Research, Knowledge, and Data Systems sub-programme in the Evidence and Knowledge Systems Programme. Expenditure in the Sub-programme is expected to increase from R50.6 million to R64.6 million in 2020/21.      

  1. BUDGET ALLOCATION

The Department of Planning, Monitoring and Evaluation overall budget allocated in 2018/19 financial year is R927.4 million, which increased significantly as compared to the previous financial years. An additional amount of R140 million was allocated to the department as a result of reconfiguration and restructuring its organisational structure in order to adapt and respond effectively to the new mandate.

 

During the strategic review exercise in 2016/17, the organisational arrangement has been found to be inadequate to respond to the service delivery challenges that the Department has to respond to.  The organisational configuration and capacity requirements of the Department were found to be inadequate. Limitation validation done through Frontline Monitoring, Presidential Hotline and Siyahlola programmes is insufficient. In order to address the organisational weakness, the Department has a revised organisational structure, which has been approved to respond to achieve to its strategic outcomes. The operating model and organisational structure of the Department will be implemented in the financial year 2018/19. More emphasis in 2018/19 financial year will be on refining the operating model and creating requisite capacity by recruiting critical skills to implement, monitor and evaluate government programmes.

 

The overall budget allocation is projected to increase from R927.3 million in 2018/19 to R1 032 billion by 2020/21. The budget allocation in 2018/19 financial year has increased slightly as compared to the allocation of 2017/18 financial year. A significant increase of the budget allocation has been realised in Programme 2: National Planning Coordination for the purpose of the finalisation of the development of the legislation, whilst a decrease was on Programme 6: Evidence and Knowledge Systems as compared to the previous allocation in 2017/18 financial year.

 

The number of funded posts in the department is set to increase from 350 in 2018/19 to 468 in 2020/21. Budget on compensation of employees is expected to increase from R312.8 million in 2018/19 to R356.5 million in 2020/21 at an average annual rate of 17.7 per cent.

 

 

 

 

Programme

Revised Estimates

Medium-Term Expenditure Estimate

R million

2017/18

2018/19

2019/20

2020/21

Administration

173.4

186.6

196.9

208.2

National Planning Coordination

44.7

77.3

83.6

89.4

Sector Planning and Monitoring

47.4

55.8

59.9

64.2

Public Sector Monitoring and Capacity Development

32.4

35.1

37.6

40.3

Frontline and Citizen-based Service Delivery Monitoring

53.3

59.2

63.4

67.9

Evidence and Knowledge System

106.9

57.2

56.9

62.2

National Youth Development

440.2

455.9

473.9

499.9

Total

898.4

927.4

972.2

1 032.3

Table 1: Budget per programme

Source: Estimates of National Expenditure 2018

 

  1. PROGRAMME PERFORMANCE

There are seven programmes which are as follows:

  1. Programme 1: Administration

The main objective of the programme is to provide strategic leadership, management, administrative, financial and human resource services to enable the Department to achieve its strategic and operational goals. The programme’s key focus is to implement revised organisational structure and recruitment of key personnel, improve the quality of performance information, maintain good financial management practices to sustain clean audit outcomes and strengthen communication around the National Development Plan.

The budget allocated for the programme is R186.6 million in 2018/19 financial year as compared to R173.4 million in 2017/18 financial year. The programme received a significant budget increase of R13.2 million in the current financial year. The budget will increase significantly over the MTEF period under this programme.

Budget allocated will be spread into three sub-programmes which are Ministry, Departmental Management, Corporate Services and Financial Management. A large portion of the budget (R133.4 million) in this programme is allocated in sub-programme: Corporate Services and Financial Administration. The Ministry budget continues to be reduced over the past financial years. The spending focus over the medium term is to strengthen capacity in administrative and corporate support services and the acquisition of additional office accommodation to cater for the expanded functions of the department.

The Department had under programme 1, priorities to review first draft of the Strategic Plan and Annual Performance Plan to be submitted to the National Treasury and relevant unit in the Department. The Department intends to produce quarterly implementation reports against the Annual Performance Plan for 2018/19. Implementation reports will be tabled in the National Treasury, relevant section in the DPME and in Parliament. Moreover, the Department aims to keep the average percentage of funded posts in PERSAL within acceptable 10% level over the financial year.

The Department is committed to ensuring compliance of 100% of valid invoices paid within 30 days. Failure to pay invoices within 30 days constitutes a disciplinary action. Absorbing 5% of interns in the department has been highlighted as a priority over the medium term. Youth as well as people with disability with requisite skills should be given preference in the department when absorbing interns. The department aims to achieve 100% compliance with the Financial Disclosure Framework by all designated employees within the prescribed time frames.

  1. Programme 2: National Planning Commission

The purpose of the programme is to facilitate and coordinate macro and transversal planning across government and coordinate planning functions in the department. The key objective of the programme is to institutionalise planning across government by providing guidance on short, medium and long term planning to support the implementation of the National Development Plan Vision 2030.  In addition, the programme support the work of the National Planning Commission (NPC).

The key focus of the department on the programme is to finalise a framework on the institutionalisation of long term planning. Furthermore, finalise the revision of planning frameworks and ensure alignment of strategic plans, annual performance plans and Medium Term Expenditure Framework (MTEF) budget allocations to be aligned with the Medium Term Strategic Framework (MTSF) priorities. In addition, the Department will continue with its effort to work with the Department of Rural Development and Land Reform (DRDLR) to finalise the transfer of the spatial planning. The Department to develop the National Spatial Development Framework (NSDF) with support from the National Planning Commission and guide the development of sub-frameworks. The Department plans to build the capability to develop sector specific plans aligned to the NDP in partnership with relevant sector. Moreover, develop guidelines for the integrated policy formulation, planning and implementation. 

The Department undertakes to work in conjunction with National Treasury to ensure that the national budget is directed towards the NDP/MTSF priorities. The department is also tasked to develop and implement planning frameworks to align strategic plans and annual performance plans to the frameworks and ensure the prioritisation of resources. The department also conducts socio-economic impact assessments on new and existing legislation and regulations to ensure alignment with the NDP and mitigation of unintended new policies.

The budget allocated for the programme is R77.3 million in 2018/19 as compared to R44.7 million in 2017/18 financial year. The budget has significantly increased in this programme. Budget increase noted on the sub-programmes; Management: National Planning Coordination from R18.6 million to R27.9 million and Planning Coordination from R20.7 million to R43.1 million in 2018/19 financial year. Significant increases in these two sub-programmes as results of the Department, collaborating with the Department of Rural Development and Land Reform to finalise the transfer of the spatial planning function and development of a National Spatial Development Framework.  

An annual mandate paper for 2018/19 is planned to be developed by 30 April 2018. The Department will produce three research projects in support of the National Planning Commission. During this financial year, the Department will convene an Integrated Planning Forums to develop a way forward in ensuring alignment of government departments plans. A total of 40 assessment reports on the second draft Annual Performance Plans to be provided by the national and provincial departments in January 2019. The Department will issue a number of Quarterly Performance Reporting Guideline to all national and Provincial departments.

  1. Programme 3: Sector Monitoring

The purpose of the programme is to ensure government policy coherence and to develop, facilitate, support and monitor the implementation of sector plans and intervention strategies. The programme consists of the following two sub-programmes, which are Management Sector Planning and Monitoring and Sector Planning, Monitoring and Intervention Support.  The purpose of Sub-programme Sector Planning, Monitoring and Intervention Support is to provide support to sector planning functions and ensure government policy alignment in its goals. Also to facilitate, support and monitor the implementation of the MTSF, sector plans and of intervention strategies in priority areas.

The budget allocation in this programme is R55.9 million for 2018/19 financial year. The budget will over the MTEF increase substantially as compared to the previous years. Sub-programme on Sector Planning, Monitoring and Intervention Support has been allocated 95% of the budget in this programme. The programme has 64 posts in 2017/18 and expected to increase to 68 positions in 2020/21. Spending focus in this programme is expected to increase from R55.9 million in 2018/19 to R64.2 million in 2020/21.

The spending focus of the department in 2018/19 financial year is to accelerate progress towards the national priorities embodied in the NDP 2030, implemented through MTSF 2015-2020, through designing, disseminating and enforcing robust and effective monitoring frameworks. The Department will finalise and implement the Planning, Monitoring and Evaluation (PME) Bill to reconstruct the chain of accountability. In addition, the Department will review and strengthen the functioning of Implementation Forums. Furthermore, the department will review institutional structures spheres of government and propose alignment for 2019-2024. 

The budget allocated for this programme will be utilised to develop guidelines for the Programme of Action for monitoring system of the quarterly MTSF progress reports to the Implementation Forums. The Department intends to review and update the guidelines for the Outcomes Coordination to be used to guide the implementation of the Implementation Forums. The Department will submit quarterly performance reports to Cabinet on 12 Outcomes. In addition, the Department will develop framework to monitor performance of the Small Medium and Micro Enterprises, State Owned Enterprises and Development Finance Institutions.

Operation Phakisa was launched in 2014/15 aimed to fast-track implementation of government programmes. Operation Phakisa is a presidential initiative seeking to change the manner in which government pursues a new and faster ways of delivering services to the citizens. The Department will produce on a quarterly basis, Comprehensive Operation Phakisa progress report encompassing performance of all seven delivery labs. Among priorities in this programme is to produce a progress report showing 80% of feedback provided on SEIAS.

The Department will produce three comprehensive progress reports on the Special Presidential Package on Mining towns and labour sending areas. The President established the Special Presidential Package in October 2012 to improve living conditions in and around mining communities. Moreover, the Department will produce comprehensive progress reports on the implementation of outcomes of the Inter-Ministerial Committees.

  1. Programme 4: Public Sector Monitoring and Capacity Development

The purpose of the programme is to support the implementation of the NDP/Medium Term Strategic Framework (MTSF) by monitoring and improving the capacity of state institutions to develop and implement plans and provide services. The programme has three sub-programme which are Public Service Monitoring and Support, Local Government Monitoring and Support, and Capacity Development.

The key focus of the Department on this programme is to implement support initiatives to improve across the public service, state owned-companies and public entities. Furthermore, the Department to review, monitor and support the implementation of the Medium Term Strategic Framework in the public sector and implement strategic interventions to build a capable and developmental state through Outcomes 9 and 12. Develop and implement intervention strategies and support packages to address problems in key public sector programmes. The Department will manage the implementation of the new Heads of Department Management and Development system. Furthermore, assess management practices in all departments and weak municipalities. The department will implement capacity development programmes and innovations to enhance skills and competencies in institutional leadership and technical levels.

The budget allocated for the Public Sector Monitoring and Capacity Development programme is R35.1 million for the 2018/19 financial year which has increased slightly as compared to budget (R32.4 million) in 2017/18 financial year. Over the medium term, the budget will increase to provide financial support in fulfilling the objectives of the programme. There is a budget increase of R31.6 million as compared to R28.2 million of 2017/18 financial year on compensation of employees. The spending focus in this programme is as a result of department continuously striving to improve quality of management practices in government through management performance assessments.

The spending focus will be on the Sub-Programme: Local Government Monitoring and Support in monitoring the quality of management practices in the local government. The Sub-Programme has been allocated R29.5 million to fulfil its objectives. The Department will conduct 30 self-assessments of the Local Government Management Information Model in this financial year. The Department intends to produce quarterly, annually and mid-term review of government performance against the MTSF/NDP. The Department will further facilitate assessment and provide support to build technical and work-place capabilities to deliver on government priorities.

In responding to the 2018 State of the Nation Address regarding the monitoring of the State Owned Enterprises (SOE), the Department will develop and implement SOE Performance analysis framework to be implemented in six state owned enterprises. The function of the monitoring of the Performance Agreements and Assessments of the Heads of Department was transferred from Public Service Commission to the Department of Planning, Monitoring and Evaluation. The Department will in this financial year, produce and distribute checklist of the quality assessment of received performance agreements of the Directors General/Heads of Department.

The Treasury Regulations Section 8.1.1 stipulates that the accounting officer of an institution must ensure that internal procedures and internal control measures are in place for payment approval and processing. Moreover, the Treasury Regulation 8.2.3 states that “unless determined otherwise in a contract or other agreement, all payments due to creditors must be settled within 30 days from receipt of an invoice or, in the case of civil claims, the date of settlement or court judgement. In this regard, the Department will monitor and produce analytical reports on 30 day payments on a quarterly basis to ensure service providers are paid as per the Treasury Regulation.   

 

 

 

  1. Programme 5: Frontline and Citizen Based Service Delivery Monitoring

The purpose of the programme is to facilitate service delivery improvements through frontline and citizen-based monitoring and effective resolution systems. The programme is made of the following Sub-Programme which are Citizen Based Monitoring, Executive Support Monitoring and Presidential Hotline. 

The key focus of the Department in this financial year is to build partnership platforms and strengthen stakeholder engagements. Furthermore, focuses on the performance and effectiveness of State Owned Enterprises and Area-Based Monitoring Approach. The Department priorities are to build a monitoring capacity for sustainability within communities and capitalising on technology innovations in data collection and feedback.  

The budget allocated for the programme is R59.3 million in 2018/19 financial year. The bulk of the budget of R54.4 million is allocated in the sub-programme: Frontline and Citizen-based Service Delivery Monitoring and Complaints Resolution. There is a slight increase in the budget for the compensation of employees. A total of R39.1 million is allocated for compensation of employees. The programme has 55 funded posts and is expected to increase to 56 positions over the medium term. Spending focus is expected to increase from R59.3 million in 2018/19 to R67.9 million in 2020/21.

The Department anticipates to conduct monitoring visits in 400 facilities and further ensure quality assurance on the site monitored. The frontline service delivery monitoring programme assesses efficiency and quality of services delivered at the frontline facilities throughout the country. There is a huge increase in terms of number of facilities to be monitored in this current financial year as compared to the previous years. Three government institutions will be selected to be supported through Citizen Based Monitoring. 

The Department is responsible for managing the Presidential Hotline on behalf of the Presidency and supporting citizen and community-based monitoring. The Department is committed to achieve 80% of the Annual Presidential Hotline Enhancement Plan. In addition to the priorities in this financial year, the Department will conduct 20 visits and produce area profiles and briefing notes on Siyahlola and Izimbizo on a quarterly basis. 

 

 

  1. Programme 6: Evidence and Knowledge Systems

The purpose of the programme is to coordinate and support the generation, collation, accessibility and timely use of quality evidence to support performance monitoring and evaluation across government coordinate and support the generation, collation, access and timely use of quality evidence to support PM&E across government.

The key focus of the Department is to generate and collate evaluations, research and data from across government; develop a DPME Knowledge Hub and knowledge management system, including systems and protocols within DPME for sharing data and systems for research and analysis. Moreover, the Department will develop an evidence agenda for elements of the NDP, including evaluations, research and data, so as to inform planning and budgeting. The Department will strengthen the capacity development role of the National Evaluation so that departments and SOEs are better able to implement evaluation and evaluative processes. 

 The budget allocated in programme 6 is R57.2 million in 2018/19 financial year as compared to R106.9 million in 2017/18 financial year. There is a significant decrease on the budget allocated in 2018/19 financial year. The bulk of the budget is allocated to Sub-programme: Evaluation, Research, Knowledge and Data System. The compensation of employees: sub-programme received budget increase from R25.6 million in 2017/18 financial year to R31.5 million in 2018/19 financial year. There are 44 funded posts and further increase is expected to 49 positions in 2019/20. Spending focus is to increase from R57.2 million in 2018/19 to R62.2 million in 2020/21.

The Department is responsible for establishing and supporting the national evaluation system through the use of evidence-based research in monitoring and evaluation. The Department intends submitting the National Evaluation Plan (NEP) for approval by the Cabinet. Evaluation steering committees will approve eight NEP evaluation reports and improvement plans. A total of eight evaluation reports will be approved by evaluation steering committees. The Department will launch National Income Dynamics Study on the fourth quarter.  

  1. Programme 7: National Youth Development Programme

The purpose of the programme is to oversee youth development policy and its implementation and transfer funds to the National Youth Development Agency. The programme consists of the following sub-programmes, which are National Youth Development, Youth Development Programmes and National Youth Development Agency. The sub-programme: NYDA is a conduit for the budget of the National Youth Development Agency.

The key focus of the programme is to develop supplementary documents to the National Youth Policy 2020. Monitor progress on implementation of the National Youth Policy and supplementary legislation, policies and strategies and frameworks. Furthermore, develop monitoring and evaluation framework of the National Youth Policy and provide support across government. The programme will provide oversight over the NYDA and institutions responsible for the implementation of youth development initiatives.

The National Youth Development Programme budget allocated is R455.9 million. The bulk of the budget of R446.5 million is transferred to the National Youth Development Agency. There is a significant increase in the compensation of employees of R6.4 million as compared to the previous year with R4.1 million. The Department will monitor the implementation of the National Youth Policy. In addition, the department will oversee the performance of the NYDA, quality assured the work and transfer payments on a quarterly basis.

 

  1. NATIONAL YOUTH DEVELOPMENT AGENCY (NYDA)

The National Youth Development Agency (NYDA) is an agency established primarily to tackle challenges that the nation’s youth are faced with. The Agency was established by an Act of Parliament, act no 54 of 2008. The NYDA Act (2008) mandates the Agency to develop an Integrated Youth Development Strategy for South Africa, and initiate, design, coordinate, evaluate and monitor all programmes that aim to integrate the youth into the economy and society in general. The Act mandates the Agency to promote a uniform approach to youth development by all organs of state, the private sector and non-government organisations (NGO’s).

  1. Budget allocation overview of 2018/19

The National Youth Development Agency’s (NYDA) receives its budget through a transfer vote of the Department of Planning Monitoring and Evaluation, and again through interest and capital repayments from loans issued to its client’s prior the introduction of grant funding. The NYDA allocated budget is R446.9 million in 2018/19 financial year. The Board had renewed the Strategic Plan and the Annual Performance Plan of the NYDA. Amendment of the strategy was mainly to reposition the Agency to be accessible and visible in all corners of the country. Amendment to the Strategic Plan aimed to expand the services of the Agency through the establishment of branches in all district municipalities and the deployment of mobile outreach vehicles in all nine provinces.

By 2020, the NYDA Board intends to establish offices in each district municipality and two mobile outreach vehicles. This would be done in collaboration with the municipalities with very limited human resource, approximately five staff members. The new offices will not provide full service level branches. The offices will be provided with products and services of the NYDA such as assisting young people with internet and processing of applications for various programmes. In an effort to expand offices in the local government, the NYDA budgeted R144 million in 2018/19 financial year and R489 million over the MTEF period.

The overall administration budget is R104 million in 2018/19 financial year and R302 million over the MTEF. The employee costs expected to rise from R153 million in 2018/19 to R170 million in 2020/21, in line with inflation expectations and the three-year strategy of funding vacancies. The budget will contribute 37.5% of the total transfer from the DPME and the 35% of the overall budget. The major adjustments include adding 80-100 positions to the structure to support 18 new offices to be opened in 2018/19 financial year. However, the strategy of funding vacancies takes into cognisance maintaining a stable salary bill and having a staggered approach to the filling of posts. The expected employee costs over the medium term is expected to be R558 million.   

Second Chance Matric Rewrite Programme has been handed over to the Department of Basic Education while the Health and Wellbeing programme has been transferred to the Department of Health. The savings of approximately R12.5 million have reprioritised towards the Economic Participation and National Youth Service Programmes. The Agency has restructured its organisation in 2015/2016 financial year, reducing its salary bill by R44 million in real terms and reinvesting those funds into Youth Development programmes. Additional savings of R12 million per annum will be noted on the relocation of its Head Office. 

 

 

 

Table 2: National Youth Development Plan.

Programme

Allocated

Medium-Term Expenditure Estimate

R million

2017/18

2018/19

2019/20

2020/21

National Youth Development Agency

432.8

446.9

463.8

489.3

Total

432.8

446.9

463.8

489.3

Estimates of National Expenditure 2018

 

  1. PROGRAMME PERFORMANCE

There are four programmes which are as follows:

9.1 Programme 1: Economic Participation

The main goal of the Economic Participation programme is to enhance the 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 and skills development and to provide business support to young people. 

Over the medium term, the programme will be allocated more funding to enhance participation of young people in the economy. The budget allocated is R211.3 million in 2018/19 financial year, which has decreased significantly as compared to R228.0 million in 2017/18 financial year.  

The Agency intends in 2018/19 financial year to fund 840 entrepreneurs through development finance and creating more than 3 200 jobs in numerous sectors. A total of 18 900 beneficiaries will receive Business Development Support Services such as Vouchers, registration of new companies, Mentorship and Training at different levels to encourage the development and furtherance of the entrepreneurship agenda. 

Establishment of the entrepreneurship is one of the Agency’s programme to enhance the participation of young people in the economy through targeted and integrated programmes. The programme has attracted huge number of young people aspiring to become entrepreneurship in all facets of the country. Limited financial resources disadvantages many young people aspiring to realise such a dream of entrepreneurship. In order to tackle triple challenges of unemployment, poverty, inequality and other social ills confronted by young people, more funding in this programme is highly needed.

Over 18,900 beneficiaries with key fundamentals will be supported for their success offered by the Agency. Job creation provides young people with better foundation to thrive in life. Young people are confronted with high unemployment rate, however, creating jobs is not the sole responsibility of the Agency as per the NYDA Act. It is therefore critically important for the agency to collaborate with the public, private and non-government organisation to develop integrated youth employment strategy to close the gap of unemployment significantly into an acceptable level.

Part of reviewing the strategic plan was to incorporate, among others, the NYDA Youth Fund and Skills Fund. The Agency had established both funds in 2017/18 financial year. In 2018/19 financial year, both funds will be developed and implemented as per the project plan. Furthermore, the Agency will provide young people with youth development information. Over 25 new Service Delivery channels will be established and operationalised for young people to access information. The Agency is to pursue over 18 public and private key stakeholders lobbied to implement youth development programmes.

9.2. Programme 2: Education and Skills Development

The main 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 the Youth Build, job-preparedness training, and the provision of scholarships.

The budget allocated for the programme is R61.9 million for the 2018/19 financial year for education opportunities and Skills Development programmes. Over R12 million is budgeted to facilitate and implement skills programmes. In facilitating and implementing the education opportunities, the agency budgeted R46.9 million in order to improve the quality of education attained by the youth. 

In 2017/18 financial year, the Agency had provided approximately 500 students with the Solomon Mahlangu Scholarship. The Scholarship was introduced to encourage youth from disadvantaged communities to access higher education and further their studies. The majority of young people are interested in the scholarship to further their studies. Targets for intake on the Solomon Mahlangu Scholarship had increased tremendously since inception. In 2018/19 financial year, the Agency will continuously provide support and monitor students who have acquired the scholarship over the medium term. 

A certain portion on the budget will be spent to support young people through individual and group career guidance interventions, Youth Build, National Youth Service volunteer programmes and job preparedness and job placement. In addition, 67, 725 young people will be provided with Skills Development Training to enable them to pursue job opportunities. The planned expenditure over the medium term is R397 million.

9.3. Programme 3: Policy and Research

The main purpose 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.

Knowledge Management programme budget allocation is R28 million, which aims at creating a body of knowledge and best practice in the youth development. The spending focus on this programme will be more on conducting programme evaluations, research articles and knowledge publications. The Agency recognises the need for it to monitor its programmes to measure impact and respond to youth development matters on the ground as well conduct Stakeholder Satisfaction Surveys.

Among new indicators introduced as a results of the review of the Strategic Plan, the Agency will design a Corporate Strategy and Planning structure aligned to the Integrated Youth Development Strategy (IYDS). In addition, the Agency will review monitoring and evaluation framework to be aligned with the IYDS. 

9.4.       Programme 4: Social Cohesion and Nation building

The main goal is to promote and maximise initiatives for the active participation of young people through Social Cohesion, Sports & Recreation and Community participation activism for improved social conditions of young people in South Africa fostering patriotism, social cohesion and nation building.

The budget allocated on the programme is R37.1 million in 2018/19 financial year. Programme 4 on Social Cohesion and Nation Building is one of the new programmes introduced by the current NYDA Board. The programme intends to develop and implement protocol, procedure and coordination tool for the purpose of the national, provincial and local government in mainstreaming activities aimed for youth development. The Agency intends under this programme to facilitate the development of annual plans by government departments for 2019/2020. During this financial year, the Agency will increase registered (60) number of National Youth Service (NYS) Programme projects. A total of 5000 young people will be enrolled in the NYS category 1.  Moreover 50.000 young people to be enrolled on category 2 and 3 Expanded Volunteer Programme.

9.5 Programme 5: Governance and Administration

The purpose of the programme is to achieve efficient and effective utilisation of resources through provision of judicious governance, technology and systems, business operations, human capital, financial management systems that adhere to relevant legislative requirements for public funded entities. Governance programme has received R124.9 million for the 2017/18 financial year.

The budget allocated under programme 4 on Governance and Administration is R131.2 million.  The budget will increase over the medium term from R131.2 million in 2018/19 to R144.6 million 2020/21 financial year. Over the course of the financial year, the Agency will finalise year 1 and implement 75% year 2 of the Human Resource strategy. The Agency will finalise phase 1 and implement 50% of phase 2 of the integrated and marketing communication strategy. The Agency intends paying 100 percent of the legitimate service provider invoices within the prescribed 30-day period. 

 

  1. OBSERVATIONS AND KEY FINDINGS

The Committee observed the following matters in relation to the Budget Vote 8:

  1. The Portfolio Committee takes note of the major strides made since the establishment of the Department of Planning, Monitoring and Evaluation in adding value towards building a capable, responsive and an accountable public service. The Committee acknowledges that the DPME is making inroads into local government’s management improvements and in strengthening its monitoring role, which produces good results.

 

  1. The Committee takes note of the DPME’s role in developing high level planning framework to guide detailed planning in departments, local government and state owned enterprises.

 

  1. The Committee noted the role of the DPME in assessing performance of the Directors-General and Heads of Department (HoDs)

 

  1. The Committee welcomed and noted the DPME in working closely with the Statistics South Africa on the new programme on Evidence and Knowledge.   

 

  1. Young people are a major human resource for development, therefore the DPME was urged through its National Youth Development programme to facilitate the public and private sector in mainstreaming and prioritising youth development. The DPME has to play coordinating role and call upon all role players to take youth development seriously.

 

  1. The Department should continuously monitor government departments in reviewing their Strategic and Annual Performance Plans to advance the strategic agenda of developmental State and to ensure that they are aligned with the delivery outcomes envisaged in the Government’s Programme of Action, Medium Term Strategic Framework (MTSF) and the National Development Plan (NDP). The NDP has to begin yielding tangible results for the South African population.

 

  1. The Committee noted that the Department, as a planning entity, ensures that government priorities and budget decisions on allocations are informed by the findings of the National Planning Commission (NPC). Therefore, on a yearly basis, it would be appropriate for the Department, as the Secretariat of the NPC, to officially communicate these findings on priorities so that budget allocations by the National Treasury consider and are based on such priorities. 

 

  1. The Portfolio Committee supports the Department on its quest to have the promotional posts filled by internal staff. However, the posts left by promoted staff should not go beyond the required threshold of 10% or less as this practice stifles service delivery at some salary levels, directorates and branches.  

 

  1. The Portfolio Committee noted and welcomed the Department’s desire to establish the Knowledge Hub in order to institutionalise an information repository where all useful information and data about society, priorities, service delivery gaps and deliverables could be found in one reliable and official place on behalf of Government and the State.   

 

  1. The Portfolio Committee noted and appreciated the fact that the groundwork and systems are being laid towards reconfiguring the departments in line with the Presidential directive of the State of the Nation Address.

 

  1. The Committee welcomes the Comprehensive Plan towards the improvement of financial management systems and curbing of corrupt activities at the State-Owned Enterprises (SoEs) and Development Finance Institutions (DFIs). 

 

National Youth Development Agency (NYDA)

 

  1. The Committee commended the NYDA for a decision to have the training materials done in Braille in order to cater for people with disabilities. The NYDA should work with DEAFSA on the sign language interpreter training.  

 

  1. The Committee is still concerned with the lack of equitable spread of the Agency’s offices within and across provinces.

 

  1. The Committee welcomed and noted the signing of the Memoranda of Understanding between the NYDA and international partners and that the Agency will provide a full report on these memoranda and the achievements thereof.

 

  1. The Committee appreciates the Agency’s initiatives towards skilling, re-skilling and upskilling of the youth and the contribution it makes towards economic empowerment to establish development projects within communities.

 

 

 

  1. RECOMMENDATIONS

The Portfolio Committee recommends the following to the Department of Planning, Monitoring and Evaluation:

 

  1. The Department should intensify monitoring activities on the Frontline Service Delivery Monitoring Tool and Citizen Based Monitoring as a way of improving efficiency of service delivery in government facilities, especially at Home Affairs.

 

  1. The Department should prioritise the filling of funded vacant post, so that vacancies do not go beyond the threshold of 10%, especially at a technical level.

 

  1. The Department must continually intervene at local government through the Local Government Management Improved Model and Assessment Tool (LGMIM) to ensure that service delivery takes place at that level of governance.
  2. The Department should always ensure follow-ups on the LGMIM outcomes and also ensure that remedial actions suggested are implemented. A template on all outcomes and suggested remedial actions and their implementation must be designed and reported on in order to determine successes and challenges of the intervention, so that the programme self-evaluates as well.

 

  1. The Department should collaborate with Statistics South Africa more particularly on activities undertaken in the National Planning Programme to ensure their work complements in advancing planning and policy decision making in the country. The Knowledge Hub envisaged by the Department must be designed and developed with the requisite input from Statistics South Africa as they are the custodians and generators of official information and data regarding Government and the State.

 

  1. The Department is complemented for initiating and playing a collaborative role in the coordination of the strategy and policy on Performance Management Development System (PMDS) with the Department of Public Service and Administration, so that this policy is fully implemented; without which there can be no proper monitoring and evaluation of Heads of Department on their service delivery key performance areas.

 

National Youth Development Agency

  1. The NYDA partnerships with institutions promoting and funding young people’s innovations is encouraged. To this end, the Committee asks the NYDA to engage in more Memoranda of Understanding with the international community, with a view to soliciting sponsorship of youth-initiated projects.

 

  1. The NYDA should expand its services in place where young people are concentrated in order to attract and provide services to youth of this country. The NYDA should utilise youth statistics released by the Stats SA on where young people are concentrated and ensure resources are channelled appropriately. It is crucial that the NYDA should now concentrate on areas and communities where their impact has not been felt or have not received any attention at all.

 

  1. The NYDA should speed up the amendment to the legislation on the National Youth Development Agency Act of 2008.

 

 

  1. CONCLUSION

Improving and strengthening government planning and coordination remains an integral part of the Department of Planning, Monitoring and Evaluation. The Committee acknowledged commitment of the Department in continuously conducting assessments on the Strategic and Annual Performance Plans of national departments to ensure alignment with the priorities of the NDP. The progress being made towards the development of the Mandate Paper is acknowledged and appreciated in order to align the allocation of financial resources to government service delivery priorities. Among priorities encapsulated in the Mandate Paper is the advancement of the implementation of the NDP and a positive impact on jobs, youth, women, children and people with disabilities. 

The Committee noted the significant role the Department of Planning, Monitoring and Evaluation in institutionalising and strengthening planning in government to enhance delivery outcomes contributing to the National Development Plan. The Department of Planning, Monitoring and Evaluation as a custodian of monitoring the implementation of the service delivery agreements should intensify its efforts to foster coordination and collaboration of plans regarding the finalisation of the Performance Management Development System (PMDS) so that Heads of Department are held accountable on delivering on mandates of their departments.

 

The Portfolio Committee recommends as follows:

That the House adopts and approves the Budget Vote 8 of the Department of Planning, Monitoring and Evaluation.

Report to be considered

 

Documents

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