ATC181024: Portfolio Committee on Public Service and Administration as well as Planning Monitoring and Evaluation Report on the Quarterly Performance Budget Vote: 12 Statistical South Africa, Dated 24 October 2018

Public Service and Administration

Portfolio Committee on Public Service and Administration as well as Planning Monitoring and Evaluation Report on the Quarterly Performance Budget Vote: 12 Statistical South Africa, Dated 24 October 2018
 

1. BACKGROUND

The Portfolio Committee on Public Service and Administration as well as Planning, Monitoring and Evaluation (hereinafter referred to as the Committee) having considered fourth quarter 2017/18 and first quarter 2018/19 performance of the Statistics South Africa, reports as follows:

 

1. INTRODUCTION

Parliament through its Committees has a constitutional responsibility to oversee quarterly programme performance information of the departments and its entities throughout financial year. Programme performance information focuses on information that is collected by government departments in the course of fulfilling their mandates and implementing policies. Quarterly performance is vital in enhancing accountability, transparency and oversight on how government resources are being utilised. In terms of the Public Finance Management Regulations, departments and their entities are expected to prepare quarterly report within 30 days after the end of each quarter.

On September 05, 2018, the Committee considered the fourth quarter performance 2017/18 and first quarter performance 2018/19 financial year on the performance of the Stats SA. The performance information was in accordance with their Strategic Plans and Annual Performance Plan. The report provides an overview of the presentations made before the Committee primarily focusing on the achievements, output in respect of the performance indicators and targets set for above mentioned financial years. The report outlines the findings/observations of the Committee relating to the Department performance.

 

1. PROGRAMME PERFORMANCE

Stats SA has achieved 88,0% of its annual targets as at 31 March 2018.  Over 12,0% of targets were not achieved. Stats SA's adjusted baseline allocation for 2017/18 is R2,177 billion. Of the allocated budget, 62,1% was for compensation of employees, 23,2% was for goods and services, 14,1% was for payment for capital assets and 0,6% was for transfers. The departmental actual spending as at 31 March 2018 amounted to R2,196 billion, which is 100,8% of the baseline allocation. The department overspent by R17 957 as at 31 March 2018 due to budget reductions on compensation of employees.

 

Stats SA has a total of 568 targets in the 2018/19 annual performance plan. In 2018/19 financial year, Stats SA has achieved 18,0% of its annual targets as at 30 June 2018, of which 16,9% were achieved as scheduled; 0,5% were achieved earlier than scheduled and 0,5% were achieved later than scheduled. 1,9% of targets have been delayed.

 

Statistics South Africa (Stats SA) baseline allocation for the 2018/19 financial year is R2,272 billion. Of the baseline allocation, R1,443 billion is allocated for compensation of employees (CoE) representing 63,5%; R544,248 million is for goods and services representing 24%; R273,216 million for payments of capital assets, representing 12%; and R11,558 million is allocated for payments of transfers and subsidies, representing 0,5% of the allocation. The department’s actual spending as at 30 June 2018 amounted to R491,420 million, representing 21,6% of the baseline allocation. The available budget (excluding commitments) amounts to R1,780 billion. The compensation of employees’ budget was reduced by R179,5 million in the 2018/19 financial year. The department is projecting an overspending on the CoE budget during the 2018/19 financial year due to the budget reductions exceeding the vacancy rate.

 

 

1. Programme 1: Administration

The purpose of the programme is to manage the department and provide centralised support services and capacity building. It coordinates statistical production among organs of state in line with the purpose of official statistics and statistical principles. The programme contributes to two strategic objectives: leading the development and coordination of statistical in the South African National Statistics System (SANSS) and improving productivity and service delivery.

Programme 1 achieved 36% of targets scheduled for quarter 4 and 64% were not achieved in 2017/18 financial year.  

 

In 2018/19 financial year, programme 1 achieved 100% of targets scheduled for first quarter.

 

1. Programme 2: Economic Statistics

The Economics Statistics programme produces economic statistics to inform evidence-based economic development and transformation in line with internationally recognised practices. Programme Management for Economic Statistics provides strategic direction and leadership.

Programme 2 has achieved 92% of targets scheduled for quarter 4, 3% were achieved later than scheduled and 5% of targets were not achieved in 2017/18 financial year.

 

In 2018/19 financial year, programme 2 has achieved 100% of the targets scheduled for the first quarter and 2% of targets were achieved earlier than scheduled by 30 June 2019.

 

 

1. Programme 3: Population and Social Statistics

The purpose of the programme is to produce population, demographic, labour market and social statistics to meet user requirements in line with internationally recognised practices. Population and social statistics inform evidence-based socio-economic development and transformation in line with internationally recognised practices. Programme 3 contributes to strategic objectives in an effort to expand the statistical information base by increasing its depth, breadth and geographic spread for evidence-based planning, monitoring and decision-making for the use by both the public and private sector.

Programme 3 has achieved 57% of the targets scheduled for fourth quarter, 23% were achieved later than scheduled and 43% of the targets were not achieved in 2017/18 financial year.

 

In the first quarter 2018/19 financial year, the programme has achieved 79% of targets scheduled for the first quarter; 16% were achieved later than scheduled and 5% have been delayed by 30 June 2019.

 

1. Programme 4: Methodology, Standards and Research

The purpose of the programme is to provide expertise on quality and methodology for official statistics, standards for conducting surveys, and business sampling frames. In addition, it conducts policy research and analysis on emerging policy matters. The programme contributes to enhancing public confidence and trust in official statistics.

Programme 4 has achieved 85% of the targets scheduled for fourth quarter and 15% targets were not achieved in 2017/18 financial year.

In the first quarter of 2018/19 financial year, programme 4 had no targets scheduled for the first quarter.

 

1. Programme 5: Statistical Support and Informatics

This programme aims to enable service delivery programmes by using technology in the production and use of official statistics. It informs policy through the use of statistical geography. The programme promotes and provides better access to official statistics. The programme contributes towards enhancing public confidence and trust in statistics and investing in the learning and growth of the organisation. Moreover, the programme collaborates with partners to build and maintain a reliable sampling frame for household surveys by updating the spatial information frame annually.

Programme 5 has achieved 71% of the targets scheduled for fourth quarter, 14% were achieved earlier than scheduled and 14% of targets were not achieved in 2017/18 financial year.

 

In the first quarter of 2018/19 financial year, programme 5 has achieved 100% of the targets scheduled for first quarter.

 

1. Programme 6: Statistical Collection and Outreach

The purpose of the programme is to provide data collection and dissemination services to inform policy processes and to support decision-making through statistical information. In addition, engaging stakeholders through platforms and providing effective communication services. Promoting statistical development and cooperation in South Africa, Africa and the world is also one of the crucial functions of the programme.

Programme 6 has achieved 71% of the targets scheduled for fourth quarter, 12% were achieved earlier than scheduled and 18% of targets were not achieved in 2017/18 financial year.

 

In the first quarter of 2018/19 financial year, programme 6 has achieved 94% of planned targets.

 

1. Programme 7: Survey Operations

The purpose of the programme is to coordinate survey operations for household surveys and provide processing services to produce official statistics. The programme conducts independent household survey monitoring and evaluation activities. The programme contributes towards improving productivity and service delivery. Expanding the statistical information base for use by government, the private sector and the general public by conducting a population census every 10 years as well as large-scale population surveys between censuses is one of the focus areas.

Programme 7 has achieved 100% of the targets scheduled for fourth quarter of 2017/18 financial year.

 

In the first quarter of 2018/19 financial year, programme 7 ha achieved 67% of the planned targets scheduled for first quarter and 33% targets have been delayed.

 

1. FINDINGS AND OBSERVATIONS

The Portfolio Committee made the following observations and findings:

1. The Committee had raised a concern about the alarming high vacancy rate in the Statistics South Africa due to budget cuts on the compensation of employees over the medium term. The Committee noted that Stats SA had not made employment since 2016 despite losing employees every month who used to occupy technical and critical positions.

 

1. Budget cuts and high vacancy rate of 15% in the Statistics South Africa will in future compromise the quality of the statistics in the country. The Committee was concerned about the budget cuts, which might impact negatively on the basic statistics, preparation and data collection of the Census 2021. Budget cuts on Compensation of Employees put stats at risk and needed to be urgently addressed by the National Treasury.     

 

1. The Committee would continuously engage the National Treasury to sort out budget shortfall experienced at Stats SA, which might compromise the quality of the statistics.

 

1.  The Committee applauds Stats SA for finalisation of the amendment on the Statistical Act, which will propose drastic measures in the production and organisation structure of the statistics.     

 

1. Employment equity targets were another area the Committee had identified which must be attended to. The Committee observed that Stats SA continuously fails to meet the 50% of women in senior management positions and 2% of people with disabilities.

 

1.  The Committee to follow up on a previous letter written to the Minister of Planning, Monitoring and Evaluation and MINCOMBUD about the budget shortfalls experienced in the Statistics South Africa.

 

1. The Portfolio Committee recommends as follows:

5.1       That the House adopts and approve performance report of the Budget Vote 12 of the Statistics South Africa

 

Report to be considered