STANDING COMMITTEE ON APPROPRIATIONS ANNUAL REPORT PRESENTATION

STANDING COMMITTEE

ON

APPROPRIATIONS

ANNUAL REPORT PRESENTATION

18 OCTOBER 2012

DEPARTMENT OF PERFORMANCE MONITORING AND EVALUATIONDEPARTMENT OF PERFORMANCE MONITORING AND EVALUATION

The Presidency: Department of Performance Monitoring and EvaluationThe Presidency: Department of Performance Monitoring and Evaluation 22

Contents

1. Overview

2. The Annual Report

• Key achievements per strategic outcome oriented goal

• Overview of the Service Delivery Environment for DPME

• Summary of performance per programme

• Financial information and audit report

• HR information


Overview• During 2010/2011, PME unit was part of the Presidency vote

• 2011/2012 was first year for DPME to have own budget, this is the first annual

report produced by the department

• During 2010/11, focus of department was on putting in place performance and

delivery agreements related to the 12 priority outcomes

• During 2011/12 the focus widened to include monitoring of the implementation

of the delivery agreements and the following additional PME initiatives:

• Management Performance Assessments of national and provincial

departments

• National Evaluation Policy Framework, national and provincial evaluation

plans, and evaluations

• Front-line Service Delivery Monitoring Programme

• The Presidential Hotline (which was transferred to DPME)


The Annual Report

Key achievements per strategic outcome

oriented goal


Strategic outcome oriented goals

1. To advance the strategic agenda of government through the

development and implementation of the outcomes approach,

monitoring and reporting on progress and evaluating impact

2. To promote monitoring and evaluation practice through a coordinated

policy platform, quality capacity building and credible data systems

3. To conduct institutional performance monitoring and front line service

delivery monitoring


Key achievements: Goal 1

Institutionalised quarterly monitoring of the delivery agreements by Cabinet and

initiated reviews of the delivery agreements based on M&E findings

Provided the political principals in the Presidency with briefing notes on matters

before Cabinet

Carried out a Mid-Term Review that provided an assessment of progress towards

meeting government priorities

Produced the National Evaluation Policy Framework

Completed an evaluation of the Early Childhood Development Programme

Completed a study of the quality of sanitation, on request of the Human Rights

Commission

Assisted the political principals in the Presidency with technical support for their

hands-on monitoring visits


Key achievements: Goal 2

Convened national and provincial monitoring and evaluation forums

Established M&E learning networks and developed M&E training courses for

officials

Managed inter-departmental data forums linked to improving data for the 12

outcomes

Developed guidelines for other departments on various aspects of M&E

Provided the Programme of Action platform for the outcomes

Produced the 2011 Development Indicators


Key achievements: Goal 3 Developed and implemented a Management Performance Assessment Tool

(MPAT)

Obtained agreement with all provinces to implement a joint programme of

annual management performance assessments of national and provincial

departments

Carried out assessments of 27 national departments and 60 provincial

departments by the end of March 2012 (103 national and provincial

departments, eventually completed assessments for 2011/12)

Developed high-level proposals for linking results of assessments of

departments to assessments of Heads of Department

Instituted monitoring of a range of indicators of the performance of national

and provincial departments, on behalf of the Forum of South African Directors-

General (FOSAD)


continued…..

Assessed draft Annual Performance Plans of 33 national departments and gave

feedback to accounting officers on whether their APPs reflect commitments to

relevant Delivery Agreements

Developed and implemented a Frontline Service Delivery Monitoring

Programme and conducted more than 100 unannounced monitoring visits

Developed improvement plans to enhance the efficiency and effectiveness of the

Presidential Hotline and achieved a case resolution rate of 82% by March 2012,

from 71% in March 2011


Overview of the Service Delivery Environment

Problem statement:

Effective and efficient service delivery remains elusive in many areas

Current levels of service delivery sometimes do not meet legitimate expectations

of citizens

Role of PM&E in addressing the problem statement:

Increase strategic focus of government and increase coordination and cooperative

governance through outcomes and delivery agreements

Assess quality of management practices and assess quality of service delivery at

the coal face to improve implementation

Change management culture from focusing on activities to focusing more on

results

Increase use of evidence to improve policy-making, planning, and implementation

Develop a culture of continuous improvement


Summary of

Performance per

Programme


Programme 1: Administration

4 targets partially achieved were:• Risk management strategy and plan developed and implemented (p.20) • The department was still in the process of building capacity for risk management, a

risk manager has since been appointed• Communication strategy and plan developed and implemented (p.21)• Lack of capacity which has since been addressed, communication plan is now in place

• Procurement plan developed and implemented. Suppliers database developed (p.22)• Suppliers database was completed. Procurement plan not completed due to delays in

finalizing ICT procurement plans. The procurement plan has since been completed• Establishment of a comprehensive asset register. Implementation of asset management

policy framework (p.22)• Asset register was not complete due to delays in verification process for assets

transferred from the Presidency. This has since been completed

Number of targets 20 %

Targets achieved 16 80

Targets partially achieved 4 20

Targets not achieved 0 0


Programme 2: Outcomes Monitoring & Evaluation

6 targets partially achieved were:•National departments and Premiers’ Offices supported to translate delivery agreements into provincial targets for concurrent functions (p.24) • Some provincial departments did not set provincial targets related to all the

targets in all the delivery agreements. DPME continues to engage with provinces in this regard

•Evidence base for outcome monitoring researched and strengthened, and tools developed and refined (p.24)• Some departments had not yet sufficiently strengthened their data collection

and management systems. This is an on-going challenge and DPME is offering advice to departments to address this






continued….• Outcomes approach promoted and communicated (p.24)• Substantial work was done in communicating with departments, but this was

rated as partially complete because there was still a need for further communication. The department’s communication plan has since been finalised

• Report on alignment of the APP and strategic plan of 45 national departments to the outcomes (p.24)• Some departments did not submit APPs to DPME timeously for review. However,

assessments were done for all the 33 APPs which were submitted to DPME • Refinements to delivery agreements initiated and reflected on the POA (p.25)• The review of the delivery agreements has taken longer than expected in some

Implementation Forums• Quarterly progress updated on POA, and quarterly reporting on progress to cabinet

committees facilitated (p.26)• Not all fields were fully complete on the POA due to difficulties in obtaining

detailed reports from departments – this is sill the situation, but higher-level reports are now being prepared for the POA


Programme 3: M&E Systems and Business Systems & ICT

Of the 11 partially achieved targets, 9 relate to the targets for business and ICT (p.29-30):•Delays in finalisation of a detailed IT infrastructure design by SITA – has since been completed•Modification to DIRCO’s Bilateral Agreement Database to accommodate M&E functionalities• DPME is still engaging with DIRCO regarding possible support for developing a system

for monitoring of bilateral agreements•12 outcomes spatially enabled, partially achieved due to non-availability of disaggregated data for some outcome. There are on-going engagements with departments in this regard •Attend 90% of scheduled policy formulation/ discussion meeting and review all draft components of national GIS policy • Review not completed on time as questionnaire component of the project took longer

than anticipated. This has now been completed by DRDLR






continued…• Information/data management component of information strategy developed

and implemented • Draft Information/Data Strategy completed but not finalised timeously. Has

since been finalised• File plan completed and implemented• Archives and Services Council approval for file plan took longer than expected.

Has since been completed and is in the process of being implementedThe other 2 partially-achieved targets relate to M&E systems coordination and

support:• 12 POA reports produced quarterly (p.27)• Difficulties were experienced in obtaining sufficiently detailed information for

some outcomes for some quarters, to enable completion of all the fields in the POA

• 20 year review planned: task teams, steering committee established. Technical support in developing evaluation proposals (p.29)• Establishment of steering committee and task team had to await approval of

Cabinet. This has since been obtained and the 20 year review is under way


continued…5 targets not achieved were:•Framework on modeling needs of DPME (p.29)• It was decided that this is not a priority, and it has been replaced by other

projects•Integrated DPME projects dashboard (p.29)• The project has been postponed pending the completion of subsystems such as

the MPAT system, and will be reviewed once these are complete•Stakeholder workshop held for M&E IT guidelines and draft M&E IT guidelines developed (p.30) • Other projects were prioritised due to lack of capacity. The stakeholder

workshops have since been held and the guidelines have been finalised, and DPME is in the process of supporting departments and provinces to implement them

•100 % review of all drafted components of GIS (p.30)• As previously indicated, the review of the policy took longer than expected but it

has since been completed


Programme 4: PSAO

Above targets include the Presidential Hotline which was transferred to DPME on 01 October 2011. Presidential Hotline targets are from the revised strategic plan which was submitted to Parliament in March 2012.

The 6 partially achieved targets relate to:•45 APP assessments (p.31)• Some departments did not submit their APP’s within the required National

Treasury planning timeframes to enable assessment. DPME assessed all submitted APPs

•Undertake a review of the content and process for HoD performance assessment by Dec 2011 (p.32)• Consultation process took longer than envisaged. Has since been completed and

Cabinet has approved a revised system for performance assessment of HoDs






continued…

• Develop frameworks for DPME FSD monitoring and citizen-based FSD monitoring (p.32)• Due to capacity constraints the finalisation of these frameworks was delayed. The

FSD monitoring framework has since been finalised and the FSD monitoring programme is being implemented. The citizen-based monitoring framework is more complex than initially envisaged and is currently being developed

• Develop delivery support framework by September 2011 (p.33)• Delayed due to capacity constraints. Has since been completed

• Three support interventions facilitated, linked to FSD and management weakness (p.33)• MPAT and FSD programme commenced in mid-2011, and the focus in the first year

was on conducting the assessments to create baseline findings. A wider range of support interventions have since been put in place


Department Overall

Pr.1 Pr. 2 Pr. 3 Pr.4 Total

%

Number of targets 20 15 34 17 86 100%

Targets achieved 16 9 18 11 54 63%

Targets partially achieved 4 6 11 6 27 31%

Targets not achieved 0 0 5 0 5 6%


Financial information and

Audit report


Annual Financial Statements: Expenditure Per Programme

Prog Expenditure per Programme ('000)

Final Appropriation

Actual Expenditure Variance

Variance as % of Final

Appropriation

1 Administration 22 038 21 370 - 668 -3.0%

2 OME 23 143 22 560 - 583 -2.5%

3 M&E Systems 22 442 21 118 - 1 324 -5.9%

4 Public Sector Oversight 28 579 27 793 - 786 -2.8%

TOTAL 96 202 92 841 - 3 361 - 3.5%

The Department is aiming to reduce the overall variance to less than 2% in the current financial year, and has introduced more regular monitoring of expenditure versus budget to achieve this.


Annual Financial Statements: Areas of under-expenditure

Expenditure per Economic Classification ('000)

Final Appropriation

Actual Expenditure Variance

Variance as % of Final

Appropriation

Current Expenditure 88 611 87 028 - 1 583 -1.8% Compensation of employees 52 983 51 673 - 1 310 -2.5% Goods and services 35 598 35 325 - 273 -0.8%

Payments for capital assets 7 591 5 813 - 1 778 -23.4% Machinery and equipment 5 942 4 754 - 1 188 -20.0% Software and other int. assets 1 649 1 059 - 590 -35.8%

TOTAL 96 202 92 841 - 3 361 -3.5%

Main areas of under-expenditure:•R1,290,975 for computer equipment ordered before the end of the financial year but delivered after 31 March 2012•R536,962 for development of computer applications contracted but not completed


Report of the Auditor-General (p.44)• Opinion (point 6 p44): unqualified • Findings:

Para-graph

Finding Department’s corrective action and comments

14 Performance targets not time bound

The Department has improved its performance targets in its 2012/2013 APP

16 Achievement of planned targets: 39% not achieved

As indicated above, approximately 63% were achieved and 30% were partially achieved. The Department deliberately sets itself ambitious targets, and explanations have been provided where targets have not been met

18 Financial statements not prepared in all material respects in accordance with requirements of PFMA but were subsequently corrected

See table overleaf


continued….The table below provides the details of the issues related to the finding in paragraph 18 regarding misstatements corrected:

Issue AG finding Amount involved

(R)

Reason and/or management action taken

Hotline assets Not included in the asset movement schedule as a disclosure note to the financial statements

322 000 Supporting documentation related to transfer of assets associated with Presidential Hotline only received after end of financial year.

Employee Benefits

Incorrectly disclosed 103 402 Typing error. Department has introduced additional quality control measures.

Accruals Unrecorded liabilities identified

160 000 Relates to travel costs incorrectly disclosed as commitments instead of accruals. Will be correctly disclosed in future.

Intangible assets Internally generated intangible assets not included in the disclosure notes to the financial statement

1 300 000 Value of computer software transferred from Presidency omitted from financial statements in error. Was corrected.


continued… Para-graph


19 Accounting officer did not take reasonable steps to prevent irregular expenditure

The six cases of irregular expenditure disclosed on p.83 of the report are all related to procurement:• R34 000 relates to an order for a conference venue for which the CFO’s approval was not obtained as required by the department’s internal financial delegations. This has been condoned by the Accounting Officer in terms of the PFMA. The problem was a result of a standard form not having a place for the CFO to sign. This has since been corrected. •R524 000 relates to the development of the POA software, where the CFO provided approval (within his delegated powers) for deviating from tender procedures, but did so without sufficient documented motivation. This deviation related to obtaining quotations rather than going out on open tender, for which the threshold value is R500 000. Originally it was thought that the project cost would not exceed R500 000, and the original contract was less than R500 000. However, variations related to additional requirements were made during the implementation of the project, which increased the cost to R524 000. In future, the CFO will ensure that sufficient documented motivation is filed for such approvals.


continued… Para-graph


• R101 000 relates to non-compliance with the provision of the PPPFA which requires the supplier to complete a standard form providing details of their BBBEE status. The Department received the form from the suppliers and used it to complete the bid evaluation, but subsequently misplaced the forms for the three bidders. In order to ensure that this does not happen again, a checklist has been implemented to ensure that all documentation is filed before a procurement process is finalised. The CFO sent a memorandum to all SCM staff emphasising the importance of ensuring that all documents are properly filed.

• R137 000 and R247 000 relate to two orders placed by the Presidency while DPME was part of the Presidency vote, which were subsequently paid for by DPME. Supporting documentation was not included in the batches forwarded to DPME by the Presidency.

• R408 000 relates to expenditure on leases for photocopying machines and 3G data modems. These are automatically defined as finance leases which have been condoned by National Treasury.


continued…

Para-graph


20 Persons in charge at pay points did not always certify that employees receiving payments were entitled thereto

The department’s organisational structure and delegations changed with effect from 01 October 2011. This resulted in misalignment between payroll control procedures and delegations. This was corrected by implementing new payroll control procedures and delegations aligned to the new organisational structure, with effect from 01 April 2012.


Human Resource (HR)

Information


Human Resource Management• Employment and Vacancies:

• Vacancy rate at the end of the reporting period was - 30% (currently 15%)

• In the latter part of the reporting period the structure was revised and the post establishment increased from a 141 posts to 195

• The department also only had funding for 141 posts for 2011/2012 (additional funding to fill the new positions only became available at the beginning of the 2012/2013 financial year)

• Filling of Top Management Positions:

• Two Deputy Director-General posts were reported as vacant during the reporting period

• The posts were advertised, however challenges were experienced in recruiting the right candidates for the post

• The posts were re-advertised during the latter part of the reporting period, and the Department was able to successfully appoint one candidate into the post

• The filling of the other Deputy Director General post is currently at Cabinet for approval


HRM continued…• Employment Equity:

• The Employment Equity Plan of the Department was approved for implementation from 01 October 2011

• The Department is currently focusing on recruiting more females and Africans in Senior Management Positions to ensure set targets are achieved

• At the end of the reporting period, 34% of SMS were female and 53% were African

• This has now improved to 42% of SMS being female and 58% of SMS being African

• The Department had 1.5% of employees with disability at the end of the reporting period

• Efforts and attention are being given to this area to ensure the 2% target is achieved


HRM continued…

• Labour Relations:• Disciplinary Action – no cases• Grievances – 1 case and was resolved within the specified time frames

• Skills Development:• Planned training interventions for employees – 84• Actual training interventions for employees including interns – 81

• Utilisation of Consultants:• Service providers were used on specific projects• Since these skills were not required long term and were related to specific

projects requiring specialised skills, it was considered more efficient and cost-effective to appoint service providers than to hire permanent staff

THANK YOU!

STANDING COMMITTEE ON APPROPRIATIONS ANNUAL REPORT PRESENTATION

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