ATC181017: Budgetary Review and Recommendations Report (Brrr) of the Portfolio Committee on Public Service and Administration as well as Performance Monitoring And Evaluation on the Department of Planning, Monitoring and Evaluation (Dpme), and National Youth Development Agency (Nyda

Public Service and Administration, Performance Monitoring and Evaluation

BUDGETARY REVIEW AND RECOMMENDATIONS REPORT (BRRR) OF THE PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION AS WELL AS PERFORMANCE MONITORING AND EVALUATION ON THE  DEPARTMENT OF PLANNING, MONITORING AND EVALUATION (DPME), AND NATIONAL YOUTH DEVELOPMENT AGENCY (NYDA)
 

Date: 17 October 2018

 

  1. BACKGROUND

The Portfolio Committee on Public Service as well as Planning, Monitoring and Evaluation (hereinafter referred to as the Portfolio Committee) having considered the directive of the National Assembly as mandated by Section 5 of the Money Bills Amendment Procedures and Related Matters Act, No. 9 of 2009 to consider and report on the Annual Reports 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 as 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:

  • Participating and providing strategic direction in the development of the legislation and thereafter passing the laws;
  • Conducting oversight over the Executive to ensure accountability to the Parliament towards achieving an effective, efficient, developmental and professional public service;
  • Conducting public participation and engaging citizens regularly, with the aim to strengthen service delivery; oversee and review all matters of public interest relating to the public sector;
  • Monitoring the financial and non-financial aspects of departments and its entities and ensuring regular reporting to the Committee, within the scope of accountability and transparency;
  • Supporting and ensuring implementation of the Public Service Commission (PSC) recommendations in the entire public service
  • Participating in international treaties which impact on the work of the Committee.

 

  1. PURPOSE OF THE BUDGETARY REVIEW AND RECOMMENDATIONS REPORT

In terms of Section 5 of the Money Bills Amendment Procedures and Related Matters Act, No. 9 of 2009 the National Assembly, through its Committees, must annually compile Budgetary Review and Recommendations 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.

 

Moreover, the Money Bills Amendment Procedures and Related Matters Act, section 5 (3) highlights focus areas on the budgetary review and recommendation report as:

  • Providing an assessment of the department’s service delivery performance given available resources.
  • Providing an assessment of the effectiveness and efficiency of the departments’ use and forward allocation of available resources; and
  • Including recommendations on the forward use of resources.

 

3.1 Method

The Portfolio Committee on Public Service and Administration as well as Monitoring and Evaluation compiled the 2017/18 BRRR using the following documents:

  • The National Development Plan: Vision for 2030.
  • Medium Term Strategic Framework 2015-2020.
  • State of the Nation Address 2017.
  • Strategic Plans of the DPME and the NYDA.
  • National Treasury (2018) 4th Quarter Expenditure Report 2017/18 Financial Year, Pretoria.
  • Annual Performance Plans of the DPME and the NYDA 2017/18.
  • Annual Report of the DPME and the NYDA 2017/18.
  • Auditor-General South Africa’s outcomes of audit findings 2017/18.
  • The Portfolio Committee also met with the leadership of the Department and the National Youth Development Agency.

 

  1. NATIONAL DEVELOPMENT PLAN VISION 2030

The Department of Planning, 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.

 

  1. MANDATE OF THE DEPARTMENT OF PLANNING, MONITORING AND EVALUATION

The mandate of the Department of Planning, Monitoring and Evaluation is derived 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:

  • Facilitating 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.
  • Putting in place and managing guiding frameworks for strategic planning and annual performance planning in national and provincial departments.
  • Monitoring the performance of individual national and provincial government departments and municipalities.
  • Monitoring frontline service delivery.
  • Managing the Presidential Hotline.
  • Carrying out evaluations.
  • Promoting good monitoring and evaluation practices in Government.
    1. Department’s priorities over the medium-term

The priorities for the 2017/18 Annual Performance Plan of the Department of Planning, Monitoring and Evaluation are informed by the National Development Plan as translated in the Medium Term Strategic Framework (MTSF) for 2014-2020. The DPME has through its outcomes monitoring and evaluation work, developed a number of monitoring and evaluation tools to fulfil functions below:

  • Facilitating the development of plans or delivery agreements for the cross cutting priorities or outcomes of Government.
  • Assessing departmental Strategic Plans and APPs to determine and enhance their alignment with the NDP, MTSF, Delivery Agreements and the budget.
  • Monitoring and evaluating the implementation of service delivery agreements.
  • Monitoring the performance of individual national and provincial government departments and municipalities.
  • Monitoring frontline service delivery across the public service.
  • Managing the Presidential Hotline.
  • Carrying out evaluations.
  • Promoting good monitoring and evaluation practices in Government.
  • Providing support to service delivery institutions to address blockages in delivery.

 

  1. DEPARTMENT’S PROGRAMME PERFORMANCE
    1. Department of Planning, Monitoring and Evaluation

6.1.1 Budget Allocated and Expenditure 2017/18

The budget appropriated to the Department of Planning, Monitoring and Evaluation for 2017/18 financial year was R898 496 million. Expenditure for the department was R866 838 million for all the programmes which is an estimated 96.5% of budget spent. The Department’s under-expenditure was realised in compensation of employees, which was due to delays in approval of the new organisational structure by the Department of Public Service and Administration. Under spending on goods and services and payments for capital assets was due to delays in securing the Department’s additional office accommodation. 

In 2017/18 financial year, the Department had no rollovers requested. Net virement of R3.329 million from programme 3 and R1 824 million from Programme 6 for operational expenses under Programme 2 (R2.9 million) and Programme 4 (R2.2 million) were approved.

Due to the restructuring of the Department, the vacancy rate averaged to 25.6% in 2017/18 financial year. Recruitment in the Department is mostly internal through promotions, which translates into the vacancy rate realised. The Department developed a recruitment plan to expedite the filling of vacancies that were created during the restructuring process.  As a result, the vacancy rate was brought down to 19.6% in the last quarter of the financial year. In terms of the adherence of the Employment Equity, 51.4% of females have been appointed at senior management positions, which is an improvement of 49.4% in 2016/17 financial year. With regard to the employment of the people with disabilities, the Department had managed to achieve 2.4% of people living with disabilities.      

Table 1: Appropriation per programme (R’000)

Programme R'000

Final Appropriation

Actual

Expenditure

Variance

Shifting of funds

Virement

1. Administration

173 432

154 931

18 501

-

(14)

2.National Planning Coordination

47 639

46 139

1 500

-

2 936

3. Sector Monitoring

44 093

40 902

3 191

-

(3 329)

4. Public Sector Monitoring & Capacity Development

34 618

34 343

275

-

  1. 208

5.  Frontline Monitoring

53 421

51 786

1 635

-

23

  1. Evidence and Knowledge Systems

105 129

101 172

3 957

-

(1 824)

  1. National Youth Development

440 164

437 565

2 599

-

-

Total

898 496

866 838

31 658

-

-

Source: DPME Annual Report 2017/18

  1. Budget allocated 2018/19 and Medium Term Estimates

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 the 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.

 

Table 2: Budget per programme

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

 

The budget appropriated to the Department of Planning, Monitoring and Evaluation for the 2016/17 financial year was R797 662 million. Expenditure for the Department was R781 246 million for all the programmes which is an estimated of 97.9%. The Department under expenditure was as a result of the compensation of employees, due to the delays in implementing the new organisational structure, pending approval by the Department of Public Service and Administration.

 

The Department achieved 85.2% of its targets. Of planned targets, the Department had partially achieved 9% of targets and 4% were not achieved. In 2015/16 financial year, the Department reconfigured and restructured its organisational structure, its programmes and budget to adapt and respond effectively to the new mandate. In 2016/17 financial year, the Department had conducted a strategic and organisational review to strengthen its focus on planning, monitoring and evaluation as well as a play a more effective role in youth development. In addition, more focus will be placed on monitoring the role of State Owned Entities in advancing the implementation of the NDP and MTSF.

 

The transfer of the additional functions included all staff members, including vacancies, assets and the allocated budget resulted in an increase in the staff establishment of the Department, which had a negative impact on the vacancy rate. The Department had 345 funded posts of which 312 posts were filled and 33 posts were not filled in 2016/17 financial year. Three programmes which are; Outcome Monitoring and Evaluation, Institutional Performance Monitoring and Evaluation and National Planning Commission had high vacancy rates by 31 March 2017. The organisational adjustments were required to accommodate new programmes such as Operation Phakisa, Socio-Economic Impact Assessment System, and the Youth policy function. The Department completed its restructuring process. New programmes were implemented and funded on the incremental basis over the medium-term period.

 

6.1.3 Programme Performance

The Department has seven programmes in 2017/18 financial year organised as follows:

6.1.3.1 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.

Programme 1 has spent R154.9 million of the allocated budget of R173.4 million, which is an estimated 89.3% in 2017/18 financial year. The under spending was realised in sub-programme: Corporate Services and Financial Administration with R11 million and Ministry with R6.1 million. The programme had 17 predetermined targets. Of total targets, the Department achieved 16 targets and 1 target was not achieved, which was mainly on the vacancy rate. The Department experienced a high rate of staff turnover. Turnover rate might be due to the plethora of reasons such as uncertainty caused by the restructuring process and placement in new positions.  

During the year under review, the Department revised organisational structure that resulted in the increase from 342 to 436 posts. A newly created post could not be advertised immediately due to the process of Job Evaluation. In order to address the high vacancy rate, the Department had advertised all positions. 

The Department submitted both the Strategic and Annual Performance Plan to the National Treasury and tabled to Parliament timeously. Four quarterly progress reports were submitted to the Executive Authority and National Treasury within 30 days from the end of the quarter. An annual communication plan was produced and approved. During the year under review, eight (8) interns were appointed or absorbed into the Department in various capacities. With regard to the performance management system, the Department achieved 91% (287 out of 316) of the expected performance agreements, 96% (291 out of 303) of performance assessments and 93% (282 out of expected 304) midterm reviews submitted.   

Section (1) (f) of the Public Finance Management Act, states that, “accounting officer of a department must settle all contractual obligations and pay all money owing, including intergovernmental claims, within the prescribed or agreed period’. In view of the above, the Department achieved 100% of the valid invoices paid within 30 days. The Department complied with 100 percent of all members Senior Management Service (SMS) disclosing their financial interest in terms of Chapter 3, C.1 of the Public Service Regulations (PSR), required to disclose to their respective Executive Authorities (EAs), particulars of all their registrable interests (e.g. companies and properties) not later than 30 April each year, in respect of the period 1 April of the previous year to 31 March of the current year.

6.1.3.2 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 was to finalise a framework on the institutionalisation long term planning. Furthermore, the programme must 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 continued with its effort to work with the Department of Rural Development and Land Reform (DRDLR) to finalise the transfer of the spatial planning Programme. The Department has been working on developing the National Spatial Development Framework (NSDF) with support from the National Planning Commission in order to guide the development of sub-frameworks.

The Department had worked in conjunction with National Treasury to ensure that the national budget is directed towards the NDP/MTSF priorities. The Department was 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.

Programme 2 has spent R46.1 million of the allocated budget of R47.6 million, which is an estimated at 96.9% in 2017/18 financial year. The Department had eight (8) predetermined targets. Of all targets, six (6) were achieved and two (2) not achieved. The Department had not achieved targets on the long term planning framework which was not approved by the Cabinet and Water Sector plan was also not produced. Moreover, the Department was unable to finalise the annual budget priorities paper in April 2017. However, the Department developed and Cabinet approved the annual budget priorities paper in August 2017 later than expected.

The Department had under Programme 2 assessed the second draft of 2018/19 Annual Performance Plans of 44 national departments and sent them back to the relevant departments for finalisation. Assessment includes the Annual Performance Reports of the departments in all nine provinces. Guidelines for quarterly performance reporting in both the national and provincial departments were issued.

Socio-Economic Impact Assessment Study (SEIAS) is the systematic analysis used to identify and evaluate the potential socio-economic and cultural impacts of a proposed development on the lives and circumstances of people, their families and their communities. In this regard, the Department produced the annual report showing 98% of requests Socio-Economic Impact Assessment Study.

6.1.3.3 Programme 3: Sector Planning and 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.

Programme 3 has spent R40.9 million of the allocated budget of R44.1 million, which is an estimated at 92.8% in 2017/18 financial year. The Department had four (4) predetermined targets, of all three targets were achieved and one (1) not achieved. One target not achieved under Programme 3 was on Medium Term Strategic Framework Chapters for Outcomes 5, 7 and 8. The reason for deviations was that a Cabinet decision taken in August 2017 required Outcomes Coordinating Departments to produce Accelerated Plans for Service Delivery for 2017-2019 based on the findings of the Midterm Review 2014-2016. Accelerated Plans were subsequently developed for Outcomes1;5;7;8 and 10.

The Department is responsible for coordinating and monitoring government departments in implementing projects and fast-tracking services through Operation Phakisa. The Department produced four (4) comprehensive Operation Phakisa progress reports encompassing progress with all six delivery labs.              

6.1.3.4 Programme 4: Public Sector Monitoring and Capacity

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.

Programme 4 has spent R34.3 million of the allocated budget of R34.6 million, which is an estimate of 99.2% of 2017/18 financial year. The programme had five (5) predetermined targets. Of total targets, four (4) targets were achieved and one (1) not achieved. The Department was unable to review the Medium-Term Strategic Framework for outcomes 2; 12; 13 and 14 timeously. A midterm review report was complemented intended to determine government performance related to outcome 9 and 12. The Department produced progress reports on outcome 9 and 12 and submitted to Cabinet on a quarterly basis.  

The Department achieved 98% of Management Performance Assessment Tool (MPAT) conducted in national and provincial departments. In terms of the Local Government Management Improvement Model (LGMIM) and Assessment Tool, the Department approved the standards and completed 33 scorecards by the end of the financial year. The Department realised a huge demand on the side of the municipalities requesting to participate in the LGMIM assessment tool.

6.1.3.5 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; Citizen Based Monitoring, Executive Support Monitoring and Presidential Hotline.

Programme 5 has spent R51.8 million of the allocated budget of R53.4 million, which is an estimated 96.9% in 2017/18 financial year. The Department had four (4) predetermined targets and all were achieved.  Frontline Service Delivery Monitoring (FSDM) programme strengthens the monitoring and evaluation practices of field-level managers. The main aim of the FSDM was to demonstrate the value of on-site monitoring to selected types of facilities sectors. A total 406 monitoring visits were conducted by the Department in various government facilities. 

The primary aim of the Citizen-Based Monitoring (CBM) programme is to support government to strengthen the voice of communities in monitoring service delivery. It focuses on the experience of citizens in relation to government performance in order to improve accountability and service delivery. The Citizen Based Monitoring was implemented in three (3) new facilities and reports were produced for each of the sites.

The Department is responsible for managing the Presidential Hotline on behalf of the Presidency and supporting citizen and community-based monitoring. A total of 80% of targets in the Annual Presidential Hotline Enhancement Plan was produced. The Department intended to conduct 10 visits and produce area profiles/briefing notes/report on Siyahlola and Izimbizo on a quarterly basis. The Department exceeded the targets with 14 visits conducted and produced 25 area profile/briefing notes on Siyahlola and Izimbizo.

6.1.3.6 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 and E across government.

Programme 6 has spent R101.2 million of the allocated budget of R105.1 million which is an estimated 96.2% in 2017/18 financial year. The Department had nine (9) predetermined targets. Of total targets, five (5) were achieved and four (4) not achieved. Among targets not achieved include seven (7) National Evaluation Plan (NEP) evaluation reports approved by evaluation committees instead of eight (8) NEP targeted. The Department intended to produce eight (8) improvement plans from NEP evaluations and only four (4) were produced. With regard to the targeted seven (7) provincial evaluation plan, the Department only achieved one (1) provincial plan covering 2017/18. Almost six (6) provincial evaluation plans were not produced. Moreover, the Department was unable to produce two research assignments as a result of the decision to transfer research function to Statistics South Africa. Development Indicators was produced and posted on the website.

6.1.3.7 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; 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.

Programme 7 has spent R437.6 million of the allocated budget of R440.2 million, which is an estimated 99.4% in 2017/18 financial year. The Department had three (3) predetermined targets, of which one (1) was achieved and two (2) not achieved. Among reason cited for not achieving the target was due to the delay in finalising the Monitoring and Evaluation Framework which was not submitted to Cabinet. The Department had quality assured and transferred payments to the National Youth Development Agency. Fourth quarter quality assurance was not conducted due to the delay in submission of the NYDA performance report. 

 

  1. NATIONAL YOUTH DEVELOPMENT AGENCY

7.1 Mandate of the 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 NGO’s.

The mandate of the Agency is as follows:

  1. Lobbying and advocating for the integration and mainstreaming of youth development in all spheres of government, the private sector and civil society.
  2. Initiating, implementing, facilitating and coordinating youth development programmes.
  3. Monitoring and evaluating youth development interventions across the board and mobilising youth for active participation in civil society engagements.

 

  1. Budget allocated and expenditure
    1. Summary and Analysis of Annual Financial Statements

The National Youth Development Agency received a budget of R432 806 million in 2017/18 financial year. Of allocated budget appropriated, the Agency has spent R432 806 million. The Agency collaborated with the KwaZulu Natal Provincial Department of Economic Development for additional funding intended for Grant Funding Programme. The Department transferred additional amount to the Agency to provide grant funding to young people intending to establish business in the province. The Agency continued to achieve 100% of its Key Performance Areas.  

 

The Agency has 371 employees. In 2017/18 financial year, the Agency prioritised appointment of capable staff into critical positions. A total of 20 critical posts was identified, prioritised and successfully recruited and appointed within appropriate time. Internal staff were mainly prioritised before the positions could be advertised externally.

 

Due to the turnaround strategy and restructuring process, employee costs were reduced from R209 million to R143 million in 2015/16 financial year. The employee costs increased as a result of adjustment to cost of living from R142.6 million in 2016/17 financial year to R168.4 million in 2017/18 financial year. Staff turnover had dropped to 15 employees as compared to 15 employees in 2016/17 and 30 employees in 2015/16 financial years. The Agency had been performing well in the past financial years. The Auditor-General has conferred the institution with a clean audit in 2017/18 financial year, which is the fourth consecutive clean audit. 

 

Table 2: Budget vs Expenditure 2017/18

Key Programme Area

Budget allocation

Expenditure

Economic Participation

R187 523 500

R184 23 739

Education and Skills Development

R46 981 000

R45 575 641

National Youth Service

R47 412 000

R47 593 301

Research and Policy

R9 726 000

R7 624 218

Governance and Administration

R164 163 000

R162 918 068

Capital expenditure

R16 500 00

R16 256 000

Total

R455 806 500

R447 964 000

 

  1. Budget allocated in 2018/19 financial year and MTEF estimates

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 to 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 countrywide. 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 to allocate 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 at 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 transferred to the Department of Basic Education while the Health and Wellbeing programme has been transferred to the Department of Health. A saving of approximately R12.5 million has been 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.

 

Table 2: National Youth Development Agency

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

 

 

 

 

 

 

  1. Programme Performance

The National Youth Development Agency has five programmes which are as follows:

 

7.2.2.1 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 to 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.

The programme is designed to stimulate entrepreneurship among the South Africa youth by providing grant funding, coupled with business development support services. The grant funding programme is doing well in attracting young people to advance their aspirations of becoming entrepreneurs. Over 801 youth were offered various grant funding to own enterprises. Moreover, the agency had exceeded the target of 800 on the number of young people aspiring and establishing entrepreneurship supported through NYDA Business Development Support Services. The target was exceeded due to a partnership with Kwazulu Natal’s Department of Economic Development which provided additional funding that enabled the NYDA to issue more grants to support entrepreneurs.  Over 21 808 youth were supported with key fundamentals for success offered by the NYDA.  The target was achieved due to the high demand of BBBEE and Sales Pitch training that was the bi-products of outreach interventions where NYDA products and services were presented.

A total of 4071 jobs were created and sustained through the Grant, Voucher and Market Linkages Programmes. Most of the jobs were created from the Grant Funding Programme at 58% followed by the Voucher Programme at 36% and then Market Linkages Programmes at 6%. The Agency facilitated 8586 jobs through placement of young people in job opportunities. The NYDA partnered and collaborated with other stakeholders, which led to the overachievement of the target. The Agency had increased access to over 87 673 young people who received youth development information through walking into NYDA Branches and enrolling in NYDA outreach programmes.

As part of enhancing accessibility of the NYDA programmes, a total of 2 branch offices were opened and operationalised for young people to access NYDA information in Richards Bay and New-castle. A total of new satellite offices were operationalised for young people to access NYDA information. The Agency procured 2 outreach vehicles and 6 innovation kiosks for young people to access NYDA information.      

7.2.2.2 Programme 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 of the programme 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.

During the period under review, a total (43 102), youth were trained for Job Preparedness Training, a total of 29 725 and for Technical Training, a total of 1 486 were trained. The Agency launched the Solomon Mahlangu Scholarship Programme aimed at supporting disadvantaged young people to further their studies through higher education. The target of 504 was met and exceeded on the Solomon Mahlangu Scholarship Programme, 74 313 young people were skilled to enter the job market through being capacitated by Life Skills Training crucial for the country that is confronted with socio-economy challenges among the youth.

With regard to the National Youth Service Programme, a total of 69 projects were registered. Gauteng recorded the highest number of projects and the least were registered in Limpopo, Kwazulu Natal and Mpumalanga. Over 765 young people enrolled and participated in the National Youth Service (NYS) Category 1 programme where they were trained on both soft and technical skills. North West had the highest number of participants followed by Limpopo and Gauteng. A total of 13 778 young people enrolled and participated in the National Youth Service Category 2 and 3 Expanded Volunteer programme.

7.2.2.3 Programme 3: 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 Agency produced eight (8) evaluations aimed to tackle hindrances to youth development, which include evaluation of free WI-FI at NYDA branches and Impact evaluation of the Entrepreneurship Development Programme. The Agency mobilised and leveraged financial resources from third parties, a total amount of R120 million was raised to support youth development programme. A total of 17 public and private key stakeholders were lobbied to implement youth development programmes.  

7.2.2.5 Programme 4: Governance

The goal is to ensure 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.

Programme 4 has spent R162.9 million of the allocated budget of R164.2 million in 2017/18 financial year. The programme had five (5) planned targets. Of all planned targets, three (3) were achieved and two (2) not achieved. The targets not achieved include the Human Resource Strategy and the roll out of the training plan.

 

  1. AUDITOR-GENERAL OUTCOMES

8.1 Predetermined objectives

The Auditor-General (AG) has audited the financial statements of the Department of Planning, Monitoring and Evaluation comprising of appropriation statement, the statement of financial position as at 31 March 2018. The financial statements are in accordance with Modified Cash Standards prescribed by National Treasury and the requirements of the Public Finance Management Act (PFMA).

 

8.1.1 Predetermined objectives

The Auditor-General did not identify any material findings on the usefulness and reliability of the reported performance information for the following programmes: National Planning Commission, Sector Planning and Monitoring, Public Sector Monitoring and Capacity Development and National Youth Development.

 

 

 

8.1.2 Achievement of planned targets

The AG referred to the annual performance report on pages 21 to 72 of the Annual Report 2017/18 for information on the achievement of planned targets for the year under review and explanations provided for the achievement of a number of targets.

 

8.1.3 Adjustment of material misstatements

The AG identified material misstatements in the annual performance report submitted for auditing on the reported information. These material misstatements were on the reported performance information of all selected programmes. 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.

 

8.1.4 Compliance with legislation

The AG performed procedures to obtain evidence that the Department of Planning, Monitoring and Evaluation had complied with applicable legislation regarding financial matters, financial management and other related matters. The AG did not identify any instances of material non-compliance with specific matters in key legislation.

 

8.1.5 Internal Controls

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

 

 

 

 

 

 

 

 

  1. OBSERVATIONS AND KEY FINDINGS

The Committee made the following observations and findings:

 

9.1       The Portfolio Committee noted and commended the Department of Planning, Monitoring and Evaluation (DPME) and the National Youth Development Agency (NYDA) for achieving clean audits in consecutive years.

 

  1. The Department of Planning, Monitoring and Evaluation achieved 76% of the planned targets, whilst the National Youth Development Agency achieved 100% targets. The Committee noted an explanation provided by the DPME that more additional responsibilities were given through the work of the Inter-Ministerial Committees which had an impact on the Department achieving 100% targets.

 

  1. The Committee supports and welcomed the initiatives of the DPME to develop the Mandate Paper as a planning framework to ensure integration, better alignment between the budget, Government Programme of Action and Medium-Term Strategic Framework. The Mandate Paper is presented at the MINCOMBUD before it can be submitted to Cabinet. The Committee advised the Department that a good planning and budgeting system must be linked to implementable programmes aimed at improving socio-economic development of the citizens. Budget Prioritisation Paper (Mandate Paper) is an instrument that gives hope to society in addressing the triple challenges of unemployment, poverty and inequality.  

 

  1. The Department has to strengthen its capacity to monitor the implementation of the National Development Plan in order to ensure set targets are achieved by government departments.

 

  1. The Committee noted progress made thus far with regard to the Integrated Planning Framework Bill intended to ensure coordination and coherent planning across spheres of government. The Bill got delayed due to the consultation with the new Minister and other critical Departments including the Department of Cooperative Governance and the South African Local Government Associations (SALGA). The Committee cautioned the Department to extensively consult all stakeholders, particularly local government before the Bill can be submitted to Parliament for further processing.

 

  1. A vacancy rate was another major factor highlighted by the Committee that needed to be addressed urgently by the Department, which was above the 10% acceptable rate. The actual vacancy rate for quarter 4 was at 21.4% from 25.5% in quarter 3, 19% in quarter 1 and 21.4 in quarter 4 of 2017/18 financial year. However, the Department indicated that the vacancy rate was caused by resignations, internal and external promotions. A recruitment plan has been developed and approved by the management and improvement plan has been implemented to reach a target of 10% by the end of quarter 3 in 2018/19 financial year.    

 

  1. The National Evaluation Plan was not finalised because the Department depends mainly on the other departments to submit their evaluation plans annually. The Department introduced through the Mandate Paper (Budget Prioritisation Paper) requirements to pressurise departments to take evaluation plans seriously.  

 

  1. The departments owing the National School of Government (NSG) over a lengthy period of time is a reflection of these departments not honouring the requirement to pay for service within 30 days, and this should be reflected as such in the DPME reporting phase, so that those responsible should face the consequences during evaluation of their contracts. The Department should find a way of soliciting this information from the NSG so that the performance area on paying the service providers reads as “payment of service providers, including the NSG, where relevant”.

 

  1. Accessibility and visibility of the National Youth Development Agency have been a concern over the years to the Committee and young people in the country. The Committee welcomed the establishment of satellite offices in most local municipalities and the purchasing of two Mobile Outreach Trucks in each province to reach out at more young people. To date, the NYDA has launched five offices in five district municipalities. The Committee reiterates that satellite offices have to be fully functional, capacitated and provided with free WI-FI services for young people.

 

  1. The Committee learned with discontent that some government departments are no longer prioritizing youth development.

 

  1. The NYDA was encouraged to lobby and partner with Skills Education Training Authorities (SETAs) in order to train both skilled and unskilled young people on curriculum that will equip them to establish businesses and be self-sustainable in creating employment. The NYDA has entered into a Memorandum of Understanding with SETAs for training of youth. SETAs will be responsible for mentorship and the NYDA will offer grant funding to young people.    

 

  1.  The Committee concurs with the National Youth Development Agency proposals to include TVET qualifications in the job adverts in government. The Agency is of the view that entry positions should be open to everyone who is capable and employable irrespective whether the person studied at TVET or University. TVET colleges are a programme of Government; therefore, the youth trained therein must not be discriminated against when they look for employment opportunities.       

 

 

  1. RECOMMENDATIONS

The Committee recommends the following:

  1. The Department of Planning, Monitoring and Evaluation should ensure consultation happens with key stakeholders in the process of development of the Integrated Planning Framework Bill, especially local government, as represented by SALGA.

 

  1. The Department of Planning, Monitoring and Evaluation should brief Parliament on the Presidential Stimulus Package, the Investment and Job Summits aimed at reigniting the economy, boosting township economies and creating job opportunities, respectively, among the youth.

 

  1. The Department of Planning, Monitoring and Evaluation should constantly monitor government departments in implementing the delivery outcomes and Medium Term Strategic Framework to determine whether the objectives of the National Development Plan are achieved to realise vision 2030.

 

  1. The Department of Planning, Monitoring and Evaluation should strengthen its capacity in institutionalising planning across government by ensuring government department’s strategic plans, annual performance plans and the Medium-Term Strategic Framework are aligned and coordinated for the purpose enhancing service delivery. The Department working with the National Treasury and Department of Public Service and Administration should build capacity to assist government departments to strengthen better coordination and alignment of programmes across spheres of government.

 

  1. The Department of Planning, Monitoring and Evaluation should develop mechanisms that will encourage government departments to develop evaluation plans for their programmes.

 

National Youth Development Agency

 

  1. The National Youth Development Agency working with the Department of Planning, Monitoring and Evaluation should speed up the amendment of the National Youth Development Agency Act of 2008. The Agency should ensure provincial youth desks and other youth organisations are consulted in the process of amending the Act. The Agency should take into cognisance various youth research and evaluation studies commissioned to guide the amendments of the Act.

 

  1. The National Youth Development Agency must effectively exercise its mandate of integrating various youth sector plans with the aim of advancing youth development.

 

  1. The National Youth Development Agency should ensure all satellite offices established are fitted with free WI-FI Services to attract young to utilise the service which will promote social cohesion and facilitate access to jobs and business and training funding.  

 

  1. The National Youth Development Agency should curtail its spending patterns on administration and compensation of employees to channel budget towards programmes aimed at youth development.  

 

 

  1. CONCLUSION

The Portfolio Committee commended the Department of Planning, Monitoring and Evaluation and the National Youth Development Agency in achieving clean audits over consecutive years up to 2017/18 financial year. However, the achievement of clean audits needs to be translated into improving service delivery across government through planning, monitoring and evaluation and youth development. During the year under review, the Department developed a Mandate Paper (Budget Prioritisation Paper) which was approved by Cabinet. The Integrated Planning Framework Bill has been developed to streamline how government function. The Bill is intended to establish a framework to integrate planning across government and to ensure alignment of sector plans in all spheres of government.

 

The National Youth Development Agency remains a beacon of hope and inspiration among young people through the provision of Grant Funding and the Solomon Mahlangu Scholarship Programmes. The Agency has to redouble its efforts to ensure its programmes are accessible to many young people in the country.  

 

The Governance Cluster of Parliament is complimented for its contribution towards the BRR Report, and also the Support Staff for the drafting of the report.

 

Report to be considered.

 

 

 

 

 

Documents

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