ATC221020: Budgetary Review and Recommendations Report (BRRR) of the Portfolio Committee on Public Service and Administration: Vote 09 of the Department of Planning, Monitoring And Evaluation and Brand South Africa 2021/2022, Date 19 October 2022

Public Service and Administration

Budgetary Review and Recommendations Report (BRRR) of the Portfolio Committee on Public Service and Administration: Vote 09 of the Department of Planning, Monitoring And Evaluation and Brand South Africa 2021/2022, Date 19 October 2022

BACKGROUND

The Portfolio Committee on Public Service and Administration (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 Brand South Africa (BSA) tabled by the Minister of Planning, Monitoring and Evaluation on 11 October 2022 and reports as follows:

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 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.

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 Budget Policy Statement.

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 compiled the 2021/22 BRRR using the following documents:

The National Development Plan: Vision for 2030.
Medium Term Strategic Framework 2019-2024.
State of the Nation Address 2021.
Strategic Plans of the DPME and Brand SA.
National Treasury (2022) 4th Quarter Expenditure Report 2021/22 Financial Year, Pretoria.
Annual Performance Plans of the DPME and Brand South Africa 2021/22.
Annual Report of the DPME and Brand South Africa 2021/22.
Auditor-General South Africa’s outcomes of audit findings 2021/22.
The Portfolio Committee also met with the leadership and management of the Department and Brand South Africa.

NATIONAL DEVELOPMENT PLAN VISION 2030

The Department of Planning, Monitoring and Evaluation supports the National Development Plan’s objective of an accountable and transparent government. 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.

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 enables 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. Overview of the 2021/2022 financial year

The Department has the following activities planned for 2021/22:

5.1 Reviewing the NDP

The NDP was adopted as a guide to achieving South Africa’s goals, broadly in terms of socioeconomic development, and specifically in terms of eliminating poverty, creating jobs and reducing inequality by 2030. The National Planning Commission was tasked with reviewing some aspects of the NDP to address certain implementation challenges. Over the medium term, this review is expected to assess the capacity and capability of the State in measuring the implementation of the NDP. Related activities are set to be carried out in the Management: National Planning Coordination sub-programme in the National Planning Coordination programme.

5.2 Improving and strengthening government planning and coordination

The Department is mandated to improve and strengthen government’s planning and coordination. This involves: ensuring the implementation of government’s medium-term strategic framework, which is implemented in five year cycles to allow for revisions, and serves as a roadmap for achieving goals linked to NDP outcomes; and conducting assessments of national departments’ draft strategic and annual performance plans to ensure alignment with the medium-term strategic framework and the NDP. In this regard, in each year over the medium term, the Department expects to produce 47 assessment reports. Based on the outcomes of these assessments, the Department will, in consultation with the National Treasury, identify delivery priorities for the funding of national departments. Related activities are carried out in the Planning Coordination sub-programme in the National Planning Coordination programme.

5.3 Supporting implementation of short-term and medium-term goals

Tracking the performance of the short-term and medium-term goals of Government’s 2019‐2024 medium-term strategic framework is a core function of the Department. Accordingly, over the MTEF period, the Department will engage national and provincial departments, government agencies and key state-owned entities to assess their implementation of the priorities and indicators of the medium-term strategic framework, and identify performance gaps and interventions to address underperformance. In this regard, the Department plans to produce two reports per year over the medium term for submission to Cabinet.

5.4 Monitoring and supporting implementation

Over the medium term, Government’s 2020-2024 medium-term strategic framework will form the basis of using the Programme of Action monitoring system, which will identify critical actions to be taken by government towards achieving the NDP’s vision while enabling direct links between the NDP, and departmental strategic and annual performance plans. Through the programme of action monitoring system, the Department will report to Cabinet bi-annually regarding the implementation of Government’s 2020-2024 Medium-Term Strategic Framework.

These activities are carried out in the Outcomes Monitoring and Support sub-programme in the Sector Monitoring Services programme. Due to a growing demand from parliamentary committees and Cabinet, over the medium term, the Department plans to intervene and support the implementation of government policies and programmes at various levels of the service delivery value chain, particularly in provinces placed under administration and in areas of social unrest. Also, to fast-track the implementation of government policies and programmes in critical development issues through Operation Phakisa Monitoring Services programme.

5.5 Developing intervention programmes to support service delivery

The Department plans to produce two reports per year over the MTEF period to monitor the impact of policy priorities in relation to actual service delivery through various frontline monitoring programmes, including targeted site visits, citizen-based monitoring and the Presidential Hotline. To enhance capacity over the medium term, the Department plans to assess the performance of government departments, agencies, state-owned enterprises and local government. This will include the development of a new monitoring model to replace the management performance assessment tool, and support the annual development and assessment of performance agreements of Heads of Department. These activities will be carried out in the Public Service Monitoring and Capacity Development sub-programme in the Public Sector Monitoring and Capacity Development programme.

5.6 Conducting research and evaluations

The Department’s ongoing focus is on maximising the use of its evaluations and research to generate rapid and relevant evidence to inform planning and monitoring, and appropriate interventions. As such, over the medium term, the Department plans to work towards improving research and knowledge, and maintain evidence-based policy development, planning, implementation and monitoring by providing support for data management. This will be achieved by developing and monitoring the implementation of a national evaluation plan, and conducting evaluations and research to support the planning and monitoring activities of the National Planning Coordination and Sector Monitoring Services programmes. Accordingly, in each year over the medium term, the Department plans to produce 10 evidence reports on indicators related to evaluations, and research and development.

The priorities for the 2021/22 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 2019-2024. The DPME has, through its outcomes monitoring and evaluation work, developed a number of monitoring and evaluation tools to fulfil the 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.

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

6.1.1 Budget Allocated and Expenditure 2021/22

The Department of Planning, Monitoring and Evaluation spent R396.7 million (86.4 per cent) of the allocated budget of R459.2 million in 2021/22 financial year. The Department underspent by R62.5 million (13.6 per cent) of the allocated budget as at March 2022. The underspending was experienced in all programmes of the department, with the National Planning Coordination highest with R22.8 million, Administration with R14.8 million, Evaluation, Evidence and Knowledge System with R10.1 million due to delays in procurement of evaluation and research service which require independent experts and Sector Monitoring Service with R9.4 million.

During the year under review, the Department recorded fruitless and wasteful expenditure of R58 thousand. The Department registered R808 thousand possible fruitless and wasteful expenditure which is still under investigation as at 31 March 2022. The Department recorded irregular expenditure of R14.3 million in the 2021/22 financial year. A total of 11.2 million of possible irregular expenditure was under investigation as at 31 March 2022. The Department reported that an investigation of irregular expenditure will be undertaken to enable implementation of consequence management and condonation/recovery plan.

The Department has an approved organisational structure of four hundred and eight approved positions. Due to budget cuts implemented by the National Treasury, twenty-nine position were unfunded in order to remain within the allocated Cost of Employment budget. A new 3-year Human Resource Plan which is aligned to the new organisational structure was approved in August 2021 and is being implemented and monitored. The Department filled 37 posts in 2021/22 financial year and managed to reduce vacancy rate from 10.5% in March 2022 The Department has managed to reduce vacancy rate to 8.4%, however, the department was still experiencing a high staff turnover resulting into vacancy rate of 11.4%. The Department managed to appoint 8.6% interns against target of 5%.

In achieving a 50% gender representation of females in SMS and increasing the percentage of people with disabilities employed in the Department, female representation was at 59.6% (8.3 above the Employment Equity target) and 52.4% female occupying SMS positions. This has to be commendable achievement to have reached this target of 52.4% since the establishment of the department. The Department has achieved 2% of people with disabilities by achieving 2.2% of employment of people with disabilities. The Department awarded bursaries to eight employees.

Table 1: Appropriation per programme (R’000)

2021/22				2020/21
Programme	Final Appropriation R’000	Actual Expenditure R’000	(Over)/Under Expenditure R’000	Final Appropriation R’000	Actual Expenditure R’000	Over)/Under Expenditure R’000
Administration	190 777	175 964	14 813	160 070	156 528	3 542
National Planning Coordination	80 069	57 242	22 827	66 366	64 741	1 625
Sector Monitoring Services	66 545	57 172	9 373	58 625	57 416	1 209
Public Sector Monitoring & Capacity Development	80 513	75 094	5 419	79 231	75 901	3 330
Evaluation, Evidence and Knowledge Systems	41 309	31 246	10 063	35 682	32 553	3 129
TOTAL	459 213	396 718	62 495	399 974	387 139	12 835

Source: DPME Annual Report 2020/21

6.1.2 Programme Performance

The Department has six programmes in 2021/22 financial year organised as follows:

6.1.2.1 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 R175.9 million of the allocated budget of R190.8 million, which is an estimation of 96% in 2021/22 financial year. Programme 1 underspend on sub-programme: Corporate Services and Financial Administration with R5.8 million, Departmental Management with R1.6 million and Ministry with R7.3 million. The total amount of under expenditure was R14.813 million. The programme had eleven (11) predetermined targets. Of total targets, the Department achieved six (06) targets and five (5) were not achieved.

The average vacancy rate was at 7.5% which is below 10% acceptable rate in the public service. The Department has drastically reduced the vacancy rate from 11.4% in 2019/20 financial year to 4.1% in 2020/21. During the under review, the Department has had an increase of the vacancy rate of 7.5% in 2021/22 financial year. The recruitment plan developed to fast track the appointment process in the past financial years has produced results. The Department has to use similar recruitment drive approach to avoid exceeding acceptable rate of 10% in the near future.

The Department produced four quarterly reports against the APP were submitted to the Executive Authority and National Treasury within 30 days at the end of the quarter. 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 payment of valid invoices within 30 days. The Department achieved 98% Senior Management Service (SMS) disclosing 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.

6.1.2.2 Programme 2: National Planning Commission

The purpose of the Programme is to develop, implement planning frameworks, and facilitate the alignment of the planning and budgeting functions across government and in the Department. The key objective of this Programme is to ensure the achievement of the NDP’s objectives by 2030, through developing an annual budget prioritisation framework, embedding the national spatial development framework in the strategic and annual performance plans of national and provincial departments over the medium term.

The Programme further intends to coordinate planning functions across government by assessing the alignment of the strategic and annual performance plans of national and provincial departments and public entities with Government’s 2019-2024 Medium-Term Strategic Framework annually. In addition, the Programme has to assess alignment of provincial growth and development plans with local government’s Integrated Development Plans and, in turn, with Government’s 2019-2024 Medium-Term Strategic Framework annually.

Programme 2 has spent R57.2 million of the allocated budget of R80.1 million, which is an estimated at 84% in 2021/22 financial year. The Department’s personnel drive most of the outputs, most of the budget was expended on salaries and to a large extent on travel and accommodation. The Department had twelve (12) predetermined targets by March 2022. Eleven targets were achieved of total targets. Only one target was not achieved.

The Department had under this programme achieved the following, revising, updating and developing the policy and legislative frameworks which guide the country’s planning system; developed the overall strategy and instruments to guide government prioritisation and implementation for the 2022/23 financial year; management, coordination and alignment of the national planning system; promoting the spatial planning agenda within the broader development agenda; leading, developing and coordinating institutional arrangements to strengthen integrated planning and alignment across different spheres of government, and mainstreaming the rights of women, youth and persons with disabilities within the planning system.

The Policy Framework for Integrated Planning was produced in the 2021/22 financial year and aims to strengthen coherence and harmonisation across the planning system towards the achievement of the country’s development goals. The Department assessed strategic and annual performance plans of national and provincial departments in the 2021/22 financial year. The assessment contributes to the improvement in the quality of institutional plans developed towards more effective content alignment with the MTSF and NASP.

The Budget Prioritisation Framework was developed to facilitate alignment of the 2022 national budget process with short, medium and long term priorities of government. This is to ensure key plans and priorities are adequately resourced to support development outcomes. Furthermore, the Department developed a Political Economy Analysis and Foresighting Report to serve as an input into the country planning processes.

The Department revised draft Integrated Planning Framework Bill and renamed the National Development Planning Framework Bill which aims to provide framework for a coherent and synthesised national development planning system involving the three spheres of government. Following the development of geo-spatial referencing guidelines in 2021, a pilot study on geo-spatial referencing with three provincial and three national departments was conducted during the 2021/2022 financial year. A comprehensive pilot study report was completed with key recommendation for improving geo-spatial referencing in government.

The Guidelines for Localisation of Government Plans within the District Development Model (the Localization Guidelines) were developed. The Guidelines will assist the spheres of government to localise the development agenda, including the MTSF and provincial and institutional plans within the context of the DDM and the District One Plans. Localisation and alignment will in turn contribute to greater impact and better outcomes.

6.1.2.3 Programme 3: Sector Monitoring Services

The purpose of the Programme is to ensure government policy coherence. The Programme develops, facilitates, supports and monitors the implementation of sector plans and intervention strategies. The main objectives of the programme are to ensure the effective implementation of government’s 2019-2024 Medium-Term Strategic Framework by monitoring the achievement of targets in priorities 1 to 5 and priority 7 and reporting on progress to Cabinet twice in a year. Furthermore, it monitors and reports on the achievement of targets in the performance agreements between the President and Ministers annually, and support, where and when required for the development and implementation of special intervention programmes.

Programme 3 has spent R57.2 million of the allocated budget of R66.5 million, which is an estimated at 93.3% in 2021/22 financial year. The Department had five (05) predetermined targets, and all five (5) targets were achieved. The Department produced Medium-Term Strategic Framework Integrated Reports and 100% briefing notes against all the Cabinet Memorandum. In support to the President, Ministerial performance agreements for newly appointed ministers were prepared and score cards for existing ministers were prepared to enhanced political accountability for government performance. The programme has achieved 100% of the Minister Performance Agreements of newly employed Ministers aligned to the MTSF in support to the public sector monitoring.

The Local Government Management Improvement Model tool provided an integrated and holistic view of a municipality’s performance across several critical key performance areas. The results of the LGMIM are incorporated in the municipal plans (IDP and SDBIP) to facilitate the unblocking of service delivery issues. The Department facilitated accelerated implementation of priorities outlined in the MTSF to contribute to the speedy resolution of the triple developmental question of poverty, inequality and job creation.

The Programme planned to spend budget on monitoring the quality of management through the Local Government Management Improvement Model (LGMIM) and produce improvements plans. The Department has produced 22 self-assessment reports. The Department is responsible to coordinate and monitor government departments in implementing projects and fast-tracking services through Operation. The Department produced two (2) Integrated Operations Phakisa reports. Furthermore, two (2) integrated report and annual reports were produced.

6.1.2.4 Programme 4: Public Sector Monitoring and Capacity Development

The purpose of the Programme is to support the implementation of the Medium-Term Strategic Framework by monitoring and improving the capacity of state institutions to develop and implement plans, and provide services. The main objective of the Programme is to strengthen state governance, efficiency, effectiveness and equity through: monitoring the achievement of targets related to Priority 6 of Government’s 2019-2024 Medium-Term Strategic Framework, and reporting on progress to Cabinet twice in a year.

Furthermore, it will develop and implement the new performance and capabilities analytical framework by March 2022 by ensuring the alignment of the performance agreements of Heads of Department with Government’s 2019-2024 Medium-Term Strategic Framework and supporting assessments conducted on Heads of Department annually. Additionally, the Programme monitors service delivery through regular frontline monitoring visits, citizen-based monitoring and the Presidential Hotline, and reporting thereon.

Programme 4 has spent R75.1 million of the allocated budget of R80.5 million, which is an estimate of 97.1% of 2021/22 financial year. The programme had ten (10) predetermined targets. Of total targets, seven (7) targets were achieved and three (3) not achieved. The Department produced one status report and a framework of assessment of Minister were developed. The Department partially achieved target on the integrated report on state of State Owned Enterprises (SOE’s) but not approved. With regard to the monitoring of the State Owned Enterprises, the President has established the Presidential State-Owned Enterprises Council (PSE) to support repositioning of state-owned enterprises.

The Department compiled report on the performance agreements of the Heads of Department in both national and provincial departments. Report on the evaluation of the HODs performance agreements was not developed due to extension. The Department produced two Frontline Service Delivery Monitoring report on the implementation of MTSF priorities at the district level. The programme further administer the Presidential Hotline. The Hotline resolution rate dependent on sector departments and provinces resolving cases sent to them. However, the PH Case Management team has been working continuously with the Departments to resolve cases. Some cases are complex and takes time to resolve.

During the year under review, the Department produced two public service performance and capability monitoring reports. Moreover, two public service performance and capability monitoring reports were produced. Lastly, the Department under this programme achieved Framework on the socio-economic impact of DDM and implemented by March 2022.

6.1.2.5 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. The main objective of the programme is to support the planning and monitoring roles of the Department by developing and implementing the national evaluation plan annually, conducting research and evaluations in key policy areas as identified annually, and producing relevant evidence reports. It also improves knowledge management in the Department through the development and implementation of a departmental knowledge and evidence hub.

Programme 4 has spent R31.2 million of the allocated budget of R41.3 million, which is an estimate of 78.2% of 2021/22 financial year. The programme had eleven (11) predetermined targets. The programme had six (6) targets for the 2021/22 financial year. Five (5) targets were fully achieved and one (1) was not achieved. The Department produced evidence plan for the National Evaluation Policy Framework and National Evaluation Plan. Furthermore, produced four evaluation reports and three research reports. The Development Indicators report and Database was also produced. The Department has highlighted that implementation of the targets in this programme solely depends on the cooperation of stakeholders. The Department was in the process to procure external IT service provider to build the CDMAS system.

BRAND SOUTH AFRICA

7.1 Mandate of Brand South Africa

Brand South Africa (BSA) was established as a trust in 2002 and gazetted as a schedule 3A public entity in accordance with the PFMA No.1 of 1999. Its 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 the Nation Brand. BSA develops and implements 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.

Brand SA objectives for 2021/22

Developing and articulating a South Africa Brand identity that will advance South Africa’s long-term positive reputation and global competitiveness.
Building individual and institutional alignment to and supporting the brand in South Africa, and pride and patriotism amongst South Africans.
Seeking to build awareness and the image of the brand in other countries.
Seeking the involvement and cooperation of various government departments, public entities, the private sector, the non-governmental sector and civil society in achieving this objective.

7.2.1 Summary of targets and budget expenditure

Brand South Africa spent all total allocated budget of R214.7 million for 2021/22 financial year. The overall vacancy rate was at 25% which was way beyond the above 10% acceptable threshold. The increase in the vacancy rate was due to the combination of factors such as resignations, dismissals and the moratorium placed by the Minister due to proposed merger. The overall staff turnover rate was at 17.3%, inclusive of six (6) resignations and two (2) dismissals. Brand SA comprises of 62.7% female and 37.2% male. In terms of gender representation, there are 80% of General Management occupied by female and 20% by male. There are 2.33% of people with disabilities in the employ of Brand South Africa.

7.3 Programme Performance

The BSA has three main programmes, namely:

Programme 1: Administration

The Programme seeks to provide strategic leadership, management and support services to the core business functions of Brand South Africa and is overall responsible for ensuring sound governance, high performance and optimal utilization of available capital and resources.

The budget allocated was spent on a number of activities including implementation of organisational corporate identity; reporting to Board of Trustees on status of policy governance; policy and procedures awareness workshop; payment of valid invoices to suppliers within 30 days from date of receipt of invoice; and drafting and tabling of the Annual Performance Plan to the Executing Authority in Parliament. Brand SA submitted four reports to the Board of Trustees on the applicable legislative framework.

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 monitoring sentiment and performance of the National Brand to analyse trends and providing 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.

The budget was spent on various activities, which include among others, marketing campaigns that illustrate the attractiveness of the national Brand to reach all domestic and international audiences; Play Your Part ambassador engagements supported, integrated reputation and communication activities implemented for strategic platforms domestically, constitutional awareness campaigns and global South Africans activities implemented in the key markets. Furthermore, developed positive communication pieces, positive thought leadership and webinars. Brand SA reviewed and respond to relevant issues impacting on the Nation Brand in line with the reputation management strategy. The entity had Play Your Part ambassador engagements and four constitutional awareness campaigns.

Programme 3: Stakeholder relationships

The Programme seeks to build and leverage collaborative partnerships, 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.

The budget was spent on the following activities: holding one National Brand Forums, National Brand alignment training workshops implemented in provinces, reviewed and implement annual stakeholder relations strategy, implemented collaborative activities in partnership with the public sector, civil society and business stakeholders domestically.

AUDITOR-GENERAL OUTCOMES

8.1 Auditor General’s Report

The Auditor-General (AG) have 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 2022. The financial statements are in accordance with Modified Cash Standards prescribed by National Treasury and the requirements of the Public Finance Management Act (PFMA).

The Department achieved Clean Audit in consecutive years.

8.2 Predetermined objectives

The Auditor-General did not identify any material findings on the usefulness and reliability of the reported performance information for programme 4: Public Sector Monitoring and Capacity Development.

8.2.1 Achievement of planned targets

The AG referred to the annual performance report on page (s) 52 to 57 for information on the achievement of planned targets for the year under review and explanations provided for the under/over achievement of number of targets.

8.2.2 Adjustment of material misstatements

The Auditor-General identified material misstatements in the annual performance report submitted for auditing. These material misstatements were in the reported performance information of Programme 4: Public Sector Monitoring and Capacity Development. As management subsequently corrected the misstatements, the AG did not raise any material findings on the usefulness and reliability of the reported performance information.

8.3.4 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.

8.2.5 Internal Control

Internal control in the department were considered to be relevant to AG audit of the financial statements, reported performance information and compliance with applicable legislation, however, the AG objective was not to express any form of assurance on it. The AG did not identify any significant deficiencies in internal control.

OBSERVATIONS AND KEY FINDINGS

The Committee made the following observations and findings:

The Department

The Portfolio Committee notes and commends the Department of Planning, Monitoring and Evaluation (DPME) for achieving the ninth clean audit outcomes in consecutive years. Furthermore, for having achieved 80% of its set targets in 2021/22 financial year.

The Department has incurred irregular expenditure of R14.3 million as at March 2022. An investigation on the cause of irregular expenditure has been instituted. The Department has to account about the outcome of the investigation of the irregular expenditure to the Committee by February 2023.

The Department has to ensure its internal control are strengthened to avoid situation of recurring wasteful and fruitless and irregular expenditure.

The Department developed Policy Framework for Integrated Planning aims to strengthen coherence and harmonisation across the planning system towards the achievement of the country development goals. The Policy Framework further provides basis for Integrated Planning Framework Bill. The Committee has to be briefed about the Policy Framework in terms of strengthening coherence and harmonisation in the planning system across three spheres of government.

The Department has revised draft Integrated Planning Framework Bill and renamed the National Development Planning Bill, 2022 which aims to provide a framework for a coherent and synthesised national development planning system involving the three spheres of government. The Committee notes that the Department would not be able to finalise the Bill before end of 2022/23 financial year cause consultation process might take longer than anticipated.

Despite the modernisation of the Presidential Hotline, the Committee notes that the Hotline has received lower calls rate as compared to the previous years. The Committee was of the view that service delivery departments have hotlines where citizens call directly to the departments. Therefore, the Committee appealed to the Department to review and reposition the Presidential hotline to be integrated with other services delivery departments, as this will minimize so many call centers in government. The Committee would conduct an oversight to the Presidential Hotline in the next oversight visit.

The Committee notes that the Department has finalised an annual assessment of SOE’s in September 2022 and will be in a position to present the report to the Portfolio Committee.

As per the Auditor-General audit outcomes report, the Department has to continue working with the Department of Public Service and Administration to enhance performance management processes of the DGs and HOD’s in the public service. All issues raised by the AGSA has to be attended to by both departments include weight given to Key Responsibility Areas and Acting DG’s/HOD’s to be included in the DPSA PMDS for performance measurement purposes.

Brand South Africa

In view of the reconfiguration process between Brand South Africa and South Africa Tourism, the Minister of the DPME together with Board of Trustees have to expedite finalisation of the proposed merger in order to eliminate the instability caused in the institution particularly on staff members. Delays caused by both Ministers on the merger continue to negatively impact the business processes of the institution. The Committee urge both Ministers to meet urgently to resolve the reconfiguration process.

As much as moratorium of posts was uplifted for short-term contract of 24 months, the Committee was of the view that Brand South Africa has to be allowed to fill vacancies for longer term of five-year contract whilst government is still contemplating about the proposed merger.

Brand SA organizational structure was lastly reviewed in 2014, which remain concern to the Committee. Brand SA has to reconsider reviewing its organizational structure to respond to the current and future needs once a decision on the reconfiguration is concluded.

The Minister of the Department of Planning, Monitoring and Evaluation should urgently address the appointment or extension of the Board of Trustees for the stability of the Brand SA.

RECOMMENDATIONS

The Committee recommends the following:

The Department

The Department should expedite appointment of service provider to assist with further consultation and a further revision on the Integrated Development Framework Bill which has been renamed as “the National Development Planning Bill”, 2022. The aim of the Bill is to provide a framework for a coherent and synthesised national development planning system involving the three spheres of government.

The Department should continue to monitor performance of the deliverables of the Medium-Term Strategic Framework of the NDP through the integrated MTSF Monitoring and Reporting System. Monitoring results contained in the Monitoring and Reporting System should be made transparent on the department website and be shared with various Parliament Committees for oversight purposes.

The Department should brief the Committee on the annual assessment of State Owned Enterprise. The Department should share the annual assessment with all relevant Parliament Committees that oversee the State Owned Enterprises.

The Department together with the Department of Public Service and Administration should review the Policy on Performance Management Development System for the DGs and HOD’s in the public service as per the Auditor-General South Africa recommendation. Both departments should review matters identified in the PMDS policy such as weight given on Key Responsibility Areas and Acting DG’s/HOD’s to be included in the PMDS for performance measurement purposes especially when acting for more than six months.

Brand South Africa

The Minister of the DPME together with Board of Trustees should expedite finalisation of the proposed merger of Brand South Africa and Tourism SA in order to eliminate the instability caused in the institution particularly on staff members.

Both Ministers of the DPME and Tourism should urgently meet to resolve the reconfiguration process between Brand South Africa and Tourism South Africa and report to Parliament by February 2023.

The Minister of the DPME should ensure stability in the Board of Trustees by extending or appointing Board of Trustees members timeously since the current board term of office is becoming to an end.

Brand South Africa should review organisational structure once the Board of Trustees are appointed (reappointed) which was lastly reviewed in 2014.

Brand SA should be allowed to fill critical positions on a five-year long term contract rather than 24 months in order to ensure stability and accelerate performance of the organisation.

Brand South Africa should address and strengthen all areas identified in the Auditor General’s audit outcomes and report progress to the Committee by February 2023.

CONCLUSION

The Portfolio Committee commended the Department of Planning, Monitoring and Evaluation for achieving clean audits over ninth consecutive years up to 2021/22 financial year. However, the achievement of clean audits needs to be translated into improving service delivery across government through planning, monitoring and evaluation. Accountability within the Department has improved with responsible leadership and management.

In the mist of reconfiguration of the Brand South Africa, the entity should continue with coordinated activities of building South Africa’s reputation and to contribute to the country’s global competitiveness. Brand South Africa continues to build bridges across the continent, which is a noble gesture.

Report to be considered

Documents