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:
1. Introduction
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 the
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;
·
Building on existing initiatives with a renewed
focus on refining ways of measuring inputs, outputs and outcomes;
·
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.
3. Findings
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.
4. Recommendations
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.