ATC110602: Report Strategic Plan & Budget Vote 6: Department of Performance Monitoring & Evaluation
Report of the Standing Committee on Appropriations on the strategic plan and Budget Vote 6: Department of Performance Monitoring and Evaluation, dated 02 June 2011
Having considered the strategic plan and the Budget Vote 6: Department of Performance Monitoring and Evaluation, the Standing Committee on Appropriations reports as follows:
The mandate of the Department of Performance Monitoring and Evaluation was derived from Section 85 (2) (c) of the Constitution of the Republic of South Africa which states that the President exercises executive authority, together with the other members of the Cabinet, by coordinating the functions of state Departments and administrations.
In terms of section 10 (1) (c) of the Money Bills Amendment Procedures and Related Matters Act, No 9 of 2009, the relevant members of Cabinet must table updated strategic plans for each Department, public entity or institution, which must be referred to the relevant committee for consideration and report. Budget Vote 6 was referred on 23 May 2011 to the Standing Committee on Appropriations, hereinafter referred to as the Committee, for consideration and reporting. The Committee was requested to confer with the Portfolio Committees on Public Service and Administration, and Cooperative Governance and Traditional Affairs in terms of Rules 139, 303 and 304 of the National Treasury.
2. Overview of Budget Vote 6 for the 2011/12 Financial Year
The Department of Performance Monitoring and Evaluation (hereinafter referred to as the Department) was promulgated in January 2010 in line with Section 85(2) (c) of the Constitution which provides that, the President has the executive power, together with the other members of the Cabinet, to coordinate the functions of the State Departments and administrations. As from 01 April 2011 the Department is under Budget Vote 6 after being removed from Budget Vote 1 (The Presidency). The establishment of the Department bears testimony to the government’s commitment to effect positive, meaningful, and sustainable impact on the lives of South Africans. The President of theRepublic of South Africa established the Department in the Presidency to ensure the successful implementation of the 12 performance outcomes- identified by the Cabinet- which drive the strategic direction of the government. The Department is tasked to: 1) introduce an outcomes approach to detailed planning, implementation and monitoring and evaluation of the 10 priorities identified in the Medium Term Strategic Framework (MTSF); 2) Promoting monitoring and evaluation in government; monitor the performance of individual national and provincial Departments and municipalities; and 3) monitor frontline service delivery.
Furthermore, the Department is set to work closely with the National Planning Commission and other transversal Departments in setting expectations for improved outcomes across the three spheres of government and other organs of state through a results-oriented approach. Among other things, the Department will review government’s data architecture to ensure that the required performance information is generated; and ensure that this information is used in intergovernmental planning and resource allocation. The strategic priorities of the Department over the medium term include:
· Monitoring and evaluating the implementation of delivery agreements through the programme of action system (which monitors the progress of the delivery agreements, and tracks and reports on key aspects through indicators and targets for outputs, sub-outputs and in some cases activities);
· Reviewing government’s data architecture to facilitate its availability for policy management and management decisions;
· Assisting other Departments with data analysis and making effective use of evidence for sustainable improvement in service delivery;
· Introducing citizen based monitoring and evaluation mechanisms to promote citizen empowerment; and developing and implementing an objective performance assessment tool with other national Departments for institutional performance monitoring;
· Focussing on capacity building to improve the technical skills and capabilities required for outcomes based performance management; and
· Helping institutions turn around blockages and non-delivery.
Budget Vote 6 is divided into four funded programmes that seek to achieve its mandate. The four programmes and their purposes are as follows:
- Programme 1: Administration - The objective of this programme is to provide leadership, management and support services to the Department;
- Programme 2: Outcome Monitoring and Evaluation - The objective of this programme is to coordinate and manage the outcome-oriented performance monitoring and evaluation system;
- Programme 3: Integrated Public Performance Data Systems - The purpose of this programme is to coordinate and support an integrated government–wide performance monitoring and evaluation system; and
- Programme 4: Public Sector Administration Oversight -The objectives of this programme is to coordinate and facilitate public sector administration oversight services.
Table 1 (below) highlights the breakdown of the allocated funds per programme over the Medium Term Expenditure Framework (MTEF).
Table 1: Budget Allocations per Programme
Source: National Treasury (2011)
2.1 Overall Budgeting and Programme Allocations
The Department of Performance Monitoring and Evaluation (DPME) is allocated R75.7 million for the 2011/12 financial year. During the Medium Term Expenditure Framework (MTEF), the Department is allocated R141.0 million for the 2012/13 financial year and R160.4 million for the 2013/14 financial year. These allocations are divided into four different programmes namely, Administration (R22.5 million), Outcome Monitoring and Evaluation (R24.7 million), Integrated Public Performance Data System (R21.7 million), and Public Sector Administration Oversight (R6.7 million).
Table 1 (above) indicates that more resources (R24.7 million) are allocated to Outcomes Monitoring and Evaluation programme (programme 2). This is precisely due to its broad mandate which includes outcome facilitation to ensure the development of the outcome approach to performance monitoring and evaluation. It also includes the outcome research to support the learning of outcomes-oriented performance monitoring and evaluation across government and coordinates research projects. This is followed by Integrated Public Performance Data Systems which is allocated R21.7 million to provide support through Information Technology. This will ensure performance monitoring and evaluation data integration across government. The programme includes maintaining and administering the programme of action by means of focusing on data acquisition. Part of the programme includes monitoring and evaluating capacity building which aims to promote the use of data as a performance management tool.
With respect to the Public Sector Administration Oversight Programme, it received the lowest allocation of R6.7 million for the 2011/12 financial year. This programme is funded to develop and implement an institutional performance assessment tool and to monitor frontline service delivery. Part of its mandate will also include providing detailed analysis and monitoring and evaluation reports of strategic plans across government.
In terms of economic classifications, current payments received R72.7 million of the total budget for the 2011/12 financial year. This includes the following:
- An amount of R50.9 million earmarked for compensation of employees; and
- An amount of R21.8 million earmarked for goods and services.
Payments for capital assets are allocated R3 million which includes the following two budget aspects:
- An amount of R2.4 million earmarked for machinery and equipment; and
- An amount of R600 thousand earmarked for software and other tangible assets.
Furthermore, given that economic classifications in the budget are informed by three budget components namely, current payments, transfers and subsidies, and capital payments. It is important to note that there are no allocations for transfers and subsidies for the 2011/12 budget. This is due to the fact that the Department does not make any transfer payments to other agencies thus far. However, this might change in future given the incremental approach that is used by the Department to build its capacity.
Having considered the strategic plan and Budget Vote 6: Department of Performance Monitoring and Evaluation, the Standing Committee on Appropriations identified the following findings:
3.1 The Department is aware of the transversal/overlapping of responsibilities but that it intends to work closely or in partnership with other stakeholders, including Statistics South Africa and the National Planning Commission.
3.2 The Committee noted that the Department was mainly undertaking pilot projects in order to minimize risks and to cut on wasteful expenditure, should those projects not succeed. The pilot projects would however not be prolonged.
3.3 The Department was not responsible for administration of the Ministry and the Deputy Ministry of Performance Monitoring and Evaluation, which fell under the administration and the Budget Vote of the Presidency.
3.4 The monitoring and evaluation of provinces and municipalities differed as per their developmental patterns; the Committee was concerned that there might be problems in ensuring effective monitoring and evaluation in the absence of norms and standards.
3.5 It was noted that the budget of the Department of Performance Monitoring and Evaluation in the previous financial year resided under Budget Vote 1: The Presidency, therefore its annual report was incorporated into the annual report of The Presidency.
3.6 Since its formal separation from Budget Vote 1: The Presidency on 1 April 2011, no oversight structure had been put in place by Parliament to which this Department could account.
3.7 Given the fact that the Department’s mandate covers 34 national Departments, 120 provincial Departments and 278 municipalities, it is clear that more financial resources are needed for effective monitoring and evaluation.
Having considered the Strategic Plan of the Department of Performance Monitoring and Evaluation for the 2011 - 2014 period, and Budget Vote 6 for the 2011/12 financial year, the Standing Committee on Appropriations, having conferred with the Portfolio Committees on Public Service and Administration and Cooperative Governance and Traditional Affairs, recommends as follows:
4.1 That the National Assembly approve Budget Vote 6: Performance Monitoring and Evaluation.
Report to be considered.
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