ATC201013: Preliminary Budgetary Review and Recommendations Report of the Portfolio Committee on Public Service and Administration on the Four Quarters performance 2019/2020 of the Department of Planning Monitoring and Evaluation, Dated13 October 2020

Public Service and Administration

PRELIMINARY BUDGETARY REVIEW AND RECOMMENDATIONS REPORT OF THE PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION ON THE FOUR QUARTERSPERFORMANCE 2019/2020 OF THE DEPARMENT OF PLANNING MONITORING AND EVALUATION, DATED13 OCTOBER 2020

 

1. BACKGROUND

Due to worldwide COVID-19 pandemic and the implementation of the lockdown, government departments and entities were unable to table Annual Reports in Parliament by end September 2020, therefore the Committee has consolidated four quarterly performance reports for the preliminary Budgetary Review and Recommendations Report. The Portfolio Committee on Public Service and Administration (hereinafter referred to as the Committee) having considered consolidated four quarter performance of the 2019/20 financial year of the Department of Planning, Monitoring and Evaluation and Brand South Africa

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 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; overseeing and reviewing all matters of public interest relating to the public sector;
• Monitoring the financial and non-financial aspects of departments and their 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 that impact on the work of the Committee.

 

Parliament through its Committees has a constitutional mandate to oversee quarterly programme performance information of the departments and entities in a specific financial year. Section 5 of the Money Bills Amendment and Related Matters Act (2009) describes the process of exercising this responsibility. The Act states that committees of parliament must conduct reviews of the finances of their respective departments and entities and if required, issue recommendations on the forward use of resources.

1. PURPOSE OF THE BUDGETARY REVIEW AND RECOMMENDATIONS REPORT

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

The Money Bills Amendment Procedures and Related Matters Act, section 5 (3) highlights focus areas on the budgetary review and recommendations 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 department’s use and forward allocation of available resources; and
• Including recommendations on the forward use of resources.

 

 

3.1Method

The Portfolio Committee on Public Service and Administration compiled the 2019/20 preliminary consolidated report using the following documents:

• The National Development Plan: Vision for 2030.
• Medium Term Strategic Framework 2015 - 2020.
• State of the Nation Address 2019.
• Strategic Plans of the Department and Brand South Africa.
• National Treasury (2019) 4th Quarter Expenditure 2019/20 Financial Year.
• Annual Performance Plans of the Department and Brand South Africa.

 

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 PROGRAMME PERFORMANCE
   1. Department of Planning, Monitoring and Evaluation

The Department of Planning Monitoring and Evaluation has spent R914.5 million in the fourth quarter by March 2020 from the allocated budget of R956.9 million. In real terms, the Department has spent 95.6% of the allocated budget. Programme’s budget that spent below 90% was Sector Monitoring and Evidence and Knowledge Systems, which was due delays in the finalization of consultancy projects and lower than projected costs on the newly introduced rapid evaluations. The underspending was mostly reported under compensation of employees as a result of funded vacancies. However, the Department has generally spent its budget satisfactorily. 

The Department also incurred an underspending on payments for capital assets due to delays in the procurement of office new accommodation for the DPME. Due to this delay, the department has not utilized the budget allocated for tenant installation. The underspending on this item was also due to lower software expenses.

Table 1: Budget Allocation and Expenditure 2019/2020

Per Programme (R’000)	Adjusted Appropriation	Shifts / Virement	Final Appropriation	Expenditure	% Spent
Administration	184 195	3 884	188 079	178 728	95.0%
National Planning Coordination	85 931	-	85 931	79 639	92.7%
Sector Monitoring	82 615	270	82 885	71 298	86.0%
Public Sector Mon.& Capacity Dev.	86 875	(270)	86 605	82 576	95.3%
Evidence and Knowledge Systems	47 861	(3 884)	43 977	34 739	79.0%
Youth Development	469 462	-	469 462	467 538	99.6%
Total	956 939	-	956 939	914 518	95.6%
Per Economic Classification (R’000)
Compensation	331 556	-	331 556	298 908	90.2%
Goods & Services	153 905	(956)	152 949	146 247	95.6%
Capital Expenditure	11 521	-	11 521	8 450	73.3%
Transfers & Subsidies	459 957	926	460 883	460 883	100.0%
Payments for Financial Assets	-	30	30	30	100.0%
Total	956 939	-	956 939	914 518	95.6%

 

1. Programme Performance

The Department had five 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 objective is to co-ordinate planning, monitoring and reporting on the implementation of the Departmental plans, to promote internal and external communication on the work of the department, to achieve an unqualified audit opinion on financial statements, to hire, develop and retain the right people in the right positions for the department throughout the planning period, to successfully implement and realise benefits from ICT solutions in doing the work of the department and to promote good corporate governance practices and management.

Programme 1 had 10 predetermined targets in the fourth 2019/20 financial year. Of total targets, 9 were achieved and 1 targets were not achieved.

 

1. Programme 2: National Planning Coordination

The main purpose of this programme is to advance the strategic priorities of the department by developing and implementing the outcomes system, monitoring and reporting on its progress, and evaluating its impact. The main objectives are to ensure effective outcomes planning, monitoring and evaluation through facilitating the development of plans of the Delivery Agreements for priority outcomes with government departments, monitor and evaluate the implementation of the Delivery Agreements and making recommendations for corrective action on an ongoing basis. In addition, the Department aims to provide advice and technical support to the Presidency, establish and support an effective national evaluation system to inform the government’s work on a continuous basis.

Programme 2 had 4 predetermined targets during fourth quarter 2019/20 financial year and all 4 targets were achieved. 

 

1. Programme 3:Sector monitoring 

The programme is responsible for promoting good M&E practices in government, conducting management performance assessment and support, frontline service delivery monitoring and support and government-wide planning and M&E capacity development and learning. The branch will also be responsible for the proposed Regional Offices. Whereas the OME Branch’s focus is on the management of the outcomes system and the achievement of government’s priorities, the focus of the IPM&E branch is on what can be done to make the organisation function better.

Programme 3 had 5 predetermined targets in the fourth quarter 2019/20 financial year. Of 5 targets, 4 was achieved and 1 target was not achieved.

1. Programme 4:Public Sector Monitoring and Capacity Development

The purpose of this programme is to develop the country’s long-term vision and national strategic plans and contribute towards better outcomes in government through better planning, better long term plans, greater policy coherence and a clear articulation of long term aspiration. The main responsibilities of the programme is to institutionalise and strengthen planning in government by facilitating the development of sectoral plans, ensuring coherence between plans, policies and service delivery across government, ensuring high-level priorities are fed through into plans across all spheres of government and engaging stakeholders on the output of the planning process to ensure buy-in.

Programme 4 had 4 predetermined targets during fourth quarter 2019/20 financial year and all 4 targets were achieved. 

 

1. Programme 5: Evaluate, 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.

Programme 5 had 9 predetermined targets in the second quarter 2019/20 financial year. The Department achieved 7 predetermined targets and with 2 not achieved.   

 

1. BRAND SOUTH AFRICA

Brand South Africa’s purpose is to develop and implement a proactive and coordinated international marketing and communications strategy for South Africa; to contribute to job creation and poverty reduction; and to attract inward investment, trade and tourism.

BSA aims to make an indirect contribution to economic growth, job creation, poverty alleviation and social cohesion by encouraging local and foreign investment, tourism and trade through the promotion of Brand South Africa.

 

1. PROGRAMME PERFORMANCE

Programme performance follows in the ensuing paragraphs.

1. Budget allocation and expenditure

Programme	Ytd Q4 Budget	Ytd Q4 Actual	Ytd Q4 Variance	Ytd Q4 Variance %	Variance Explanation
Brand Marketing	85,599,000	83,629,988	1,969,012	98%	The variance is due to cancellations of activations in the fourth quarter
Stakeholder Relations	19,647,000	16,754,314	2,892,686	85%	The variance is attributable to the postponement of Civil society and Constitutional awareness projects in the fourth quarter.
Administration	102,668,000	98,440,238	4,227,762	96%	The variance is attributable to increase in legal services and professional fees
Total	207,914,000	198,824,540	9,089,460	96%

 

7.2.1 Programme Performance

Brand South Africa has three programmes which are as follows:

1. Programme 1: Administration

The programme seeks to provide management and leadership to develop standardised format of guidelines and templates to strengthen the means of verification and collecting and reporting on performance information. Programme 1 had 4 predetermined targets in the fourth quarter of 2019/20 financial year. Of 4 targets, 3 (75%) were achieved and 1 (25%) targets were not achieved. 

1. Programme 2: Brand, Marketing & Reputation Management

The programme seeks to develop and articulate a Nation Brand identity that will advance South Africa’s long-term reputation and global competitiveness. This includes a focus to research and monitor sentiment and performance of the National Brand to analyse trends and provide insights to inform decision making and communication and then to both proactively and reactively communicate the country’s value proposition, values and highlight progress being made. Programme 2 had 16 predetermined targets in the fourth quarter 2019/20 financial year. Of 16 targets, 13 (81%) were achieved and 3 (19%) targets were not achieved.

 

1. Programme 3:Stakeholder Relations

The programme seeks to build and leverage collaborative partnership, to participate, to integrate and coordinate efforts and approaches to market the Nation Brand identity and promote the Nation’s value proposition and to interface meaningfully with stakeholders who drive or influence the Nation Brand and its reputation. Programme 3 had 5 predetermined targets in the fourth quarter 2019/20 financial year. Of 5 targets, 4 (80%) were achieved and 1 (20%) targets were not achieved.

 

1. FINDINGS AND OBSERVATIONS

The Portfolio Committee made the following observations and findings:

1. The Committee was dissatisfied with the instability in management positions in most of government departments at the national departments. The Committee has learned that most of the Directors-General at National Level are acting, which poses a risk to the stability within the public service. The Committee appealed to both Ministers, in the Presidency for the DPME and Department of Public Service and Administration, to encourage all government departments with acting Directors-General position to fill vacancies.

 

1. The Committee urged the DPME to implement its mandate of monitoring the implementation of the National Development Plan by developing a monitoring tool that is backed by evidence. The Committee encouraged the Department to developperformance monitoring tracking tool for measuring the implementation of the NDP.

 

1. The vacancy rate was another major factor the Department should consider reducing in the fourth quarter. The vacancy rate was at 25,5% from 29% in the second quarter of the financial year. The Committee noted the reason for the delay in filling vacancies, caused by the search for the new office building to accommodate all staff members stationed in two different buildings.

 

1. The Committee was concerned about the manner in which the Department monitors government departments. The Committee was of the view that if the Department was effectively monitoring and evaluating government departments at a strategic level, the work of Standing Committee on Public Accounts (SCOPA) could have been less than it is. The Committee advised the Department to strengthen its role of planning, monitoring and evaluation with the aim of assisting legislatures with factual reports to enrich their oversight for purpose of ensuring accountability which will ultimately translate into service delivery. 

 

1. The Committee notes that Department was unable to finalise the Integrated Development Framework Bill due to the incorporation of the District Development Model into the Bill. The Department was advised to speed up the process of finalising the Bill. The Department was requested to brief the Committee in March 2020 on the result of the piloted District Development Model, which seeks to ensure each district or metro hasa single development plan, which will be formulated jointly by national, provincial and local government as well as business, labour and community in each district or metro.  

Brand South Africa

1. The Committee was concerned about prolonged suspension case of the Chief Executive Officer of Brand South Africa. The Committee advised Brand South Africa to swiftly finalise disciplinary process in order to ensure stability in the institution.

 

1. The Committee was of the view that Brand South Africa should develop a monitoring tool or index to measure the image of the country, which can be used as a reporting tool when accounting to its stakeholders. Brand South Africa was tasked to brief the Committee on the research commissioned to study the image of the country,and its impact on the economy.

 

 

1. RECOMMENDATIONS

The following recommendations are proposed to the Minister:

1. The Ministers for the Department of Planning, Monitoring and Evaluation andthe Department of Public Service and Administration were requested to impress upon other Members of Executive Council to fill overdue vacancies concerning their accounting officers. Filling of the accounting officers’ vacancies will ensure stability and promote good governance in the public service.

 

1. The Department should develop a performance monitoring tracking tool for measuring the implementation of the Medium Term Strategic Planning Framework of the NDP as a build up towards Government Review.

 

1. The Department should swiftly finalise the Integrated Development Framework Bill having incorporated lessons learned from the District Development Plan. The Department should table the Bill timeously in Parliament.

 

1. Brand South Africa should swiftly finalise disciplinary process of the Chief Executive Officer in order to ensure stability in the institution.

 

1. CONCLUSION

The Portfolio Committee was pleased with the quarterly performance of the Department of Planning, Monitoring and Evaluation and Brand South Africa. However, the Committee will still wish to witness such performance from the audited Annual Reports to be tabled in Parliament in November 2020 due to delays caused by COVID-19 world pandemic and government lockdown.

 

Report to be considered.