ATC190919: Report of the Portfolio Committee Public Service and Administration on consideration of the First Quarterly Performance 2019/2020 financial year: Statistics South Africa, dated 18 September 2019

NCOP Economic and Business Development

Report of the Portfolio Committee Public Service and Administration on consideration of the First Quarterly Performance 2019/2020 financial year: Statistics South Africa, dated 18 September 2019
 

1.BACKGROUND

 

The Portfolio Committee on Public Service and Administration (hereinafter referred to as the Committee) having considered the first quarter performance of 2019/20 financial year of the Statistics South Africa, reports as follows:

 

2.INTRODUCTION

 

Parliament through its Committees has a constitutional responsibility to oversee quarterly programme performance information of the departments and entities in a specific financial year. Quarterly performance reports are a vital tool used by parliamentary committees to ensure accountability and transparency in overseeing both financial and non-financial performance of the departments. Consideration of quarterly reports by committees is one of the established

tools to fulfil Parliament’s oversight and accountability mandates in terms of the Constitution and under rules established by the National Assembly. According to the Public Finance Regulations, departments and entities are expected to prepare quarterly reports within 30 days after the end of each quarter.

On August 28, 2019, the Committee considered the first quarter performance of 2019/20 financial year of the Stats SA. The performance information was in accordance with Stats SA Strategic Plan 2015/20 and Annual Performance Plan for 2019/20. 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.

 

3.PROGRAMME PERFORMANCE

 

Statistics South Africa’s (Stats SA) baseline allocation for the 2019/20 financial year is R2,514 billion. Of the baseline allocation, R1,460 billion is allocated for compensation of employees (CoE), representing 58,1%; R682,432 million is for goods and services, representing 27,1%; R370,231 million is for payments of capital assets, representing 14,7%; and R1,604 million is allocated for payments of transfers and subsidies, representing 0,1% of the allocation.

 

Stats SA has achieved 16,3% of its annual targets as at 30 June 2019, of which 15,6% were achieved as scheduled and 0,7% were achieved earlier than scheduled. 81,6% of targets are on track to be achieved as scheduled, and 2,2% have been delayed. In the first quarter, 94,0% of targets were achieved as scheduled and 5,0% have been reported as delayed. 4,0% of targets were achieved earlier than scheduled.

 

The department’s actual spending as at 30 June 2019 amounted to R550,927 million, representing 21,9% of the baseline allocation. The available budget, excluding commitments, amounts to R1,963 billion. The compensation of employees’ budget was reduced and the department is projecting overspending on the CoE budget during the 2019/20 financial year due to budget reductions.

Stats SA has 2 857 filled posts that consist of 2 854 and 3 staff members on contract appointed against permanent posts. The permanent staff comprises 46,3% male and 53,7% female staff members. 1,4% of employees constitute staff members with disabilities. The vacancy rate as at 30 June was at 18,6%.

 

 

(a)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, there were no targets scheduled for quarter 1.

 

 

(b)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, Stats SA achieved 100% of targets scheduled for first quarter 2019/20.

 

(c)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, 90% of targets scheduled for quarter 1 were achieved and 10,0% have been delayed.

 

(d)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, there were no targets scheduled for quarter 1.

 

 

(e)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, 62,5% of targets scheduled for quarter 1 were achieved.

 

 

(f)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, 87,5% of targets scheduled for quarter 1 were achieved as scheduled; 18,8% were achieved earlier than scheduled; and 6,3% have been delayed.

 

(g)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, there were no targets scheduled for quarter 1.

 

 

4.FINDINGS AND OBSERVATIONS

 

The Portfolio Committee made the following observations and findings:

1. The Committee welcomed Stats SA first quarter performance report for 2019/20 financial year. The Committee notes persistence challenge of the budgetary constraints impacting on the Department’s ability to execute its statistical mandate.

 

1. The Committee was concerned about high vacancy rate (18 per cent) in the Department in the first quarter which is higher as compared to the previous quarters in 2018/19 financial year. High vacancy rate was mainly caused by number of factors such as officials leaving the Department and budgetary constraints experienced in the budget for Compensation of Employees.

 

1. The Committee urged Stats SA to consider diversification of South African languages when recruiting enumerators (fieldworkers) for a myriad of surveys. Households members feel comfortable with enumerators who speaks fluently their home language unlike interviews conducted in English. Stats SA was required to ensure diversity and balance languages when recruiting enumerators for Census 2021.

 

1. The Committee urged Stats SA to fast track the legislative reforms and table them to Parliament timeously.

 

1. The Committee commended Stats SA for compliance with payment of invoices to service providers within the 30-day period.

 

1. The Committee observed that there are budgetary challenges in the Department and that the DPME should escalate the matter to the Minister and ultimately the Presidency.

 

5.The Portfolio Committee recommends as follows:

 

5.1        That the House adopts and approve performance report of Statistics South Africa.

 

 

Report to be considered