ATC151029: Budgetary Review and Recommendations Report (BRRR) of the Portfolio Committee on Public Service and Administration as well as Performance Monitoring and Evaluation on the Department of Planning, Monitoring And Evaluation (DPME), and National Youth Development Agency (NYDA), dated 15 October 2015

Public Service and Administration

BUDGETARY REVIEW AND RECOMMENDATIONS REPORT (BRRR) OF THE PORTFOLIO COMMITTEE ON PUBLIC SERVICE AND ADMINISTRATION AS WELL AS PERFORMANCE MONITORING AND EVALUATION ON THE DEPARTMENT OF PLANNING, MONITORING AND EVALUATION (DPME), AND NATIONAL YOUTH DEVELOPMENT AGENCY (NYDA), DATED 15 OCTOBER 2015

BACKGROUND

The Portfolio Committee on Public Service as well as Planning, Monitoring and Evaluation (hereinafter referred to as the Portfolio Committee) having considered the directive of the National Assembly which is in line with 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 the National Youth Development Agency (NYDA) tabled by the Minister of Planning, Monitoring and Evaluation 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 as well as Monitoring and Evaluation are as follows:

participate and provide strategic direction in the development of the legislation and thereafter passes the laws;
Conduct oversight over the Executive to ensure accountability to Portfolio Committee towards achieving an effective, efficient, developmental and professional public service;
Conduct public participation and engage citizens regularly with the aim to strengthen service delivery; oversee and review all matters of public interest relating to the public sector;
Monitor the financial and non-financial aspects of departments and its entities and ensure regular reporting to the Committee, within the scope of accountability and transparency;
Support and ensure implementation of the Public Service Commission (PSC) recommendations in the entire public service
Participate in the 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.

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 as well as Monitoring and Evaluation compiled the 2014/15 BRRR using the following documents:

The National Development Plan: Vision for 2030.
Medium Term Strategic Framework 2015-2020.
State of the Nation Address 2014.
Management Performance Assessment Tool (MPAT) 2014.
Strategic Plans of the DPME and the NYDA.
Annual Performance Plans of the DPME and the NYDA 2014/15.
Annual Report of the DPME and the NYDA 2014/15.
Auditor-General South Africa’s outcomes of audit findings 2014/15.

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.

MANDATE OF THE DEPARTMENT OF PLANNING, MONITORING AND EVALUATION

The mandate of the Department of Planning, Monitoring and Evaluation derives 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 priorities over the medium-term

The priorities for the 2014/15 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 2014-2020. The DPME has through its outcomes monitoring and evaluation work, developed a number of monitoring and evaluation tools to fulfil the below functions:

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 delivery institutions to address blockages in delivery.

ANALYSIS OF SECTION 32 EXPENDITURE REPORT

The National Treasury responded to the recommendations of the Portfolio Committee BRR report. The Committee recommended that the National Treasury should provide necessary funding to the Department of Performance, Monitoring and Evaluation in order to assist the Department for more staff recruitment to deliver on its mandate of monitoring the municipalities, to strengthen the planning and the Secretariat. The National Treasury highlighted that although no additional funding could be provided over the 2015 MTEF, due to budget constraints, the Department has since reprioritised its baseline to fund priority.

Regarding the recommendation on the NYDA’s additional funding, the National Treasury indicated that they have engaged with the Agency on its cost recovery strategy as a means of expanding and maximizing the use of its resources. Savings that will be realised from the implementation of this strategy should be re-directed to youth development.

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

7.1.1 Budget Allocated and Expenditure 2014/15

The budget appropriated to the Department of Planning, Monitoring and Evaluation for the 2014/15 financial year was R733.842 million. The Departmental expenditure was R709.147 million for all the programmes which is an estimated of 96.6 per cent with a variance of R24.695 million. The National Planning had huge variance of R17.519 million which has implications on the Department not fully spending its budget. Variance might have been caused by the abolition of the Ministry of National Planning and a process of restructuring of the former Department of Performance, Monitoring and Evaluation. The National Planning was incorporated into the Department of Planning, Monitoring and Evaluation. As a result, the number of posts in the Department had increased by 38 to reach 307, and expenditure on compensation of employees now accounts for 24.2 per cent over the medium term. Budget versus expenditure for the audited financial year of 2014/15 is as follows:

Appropriation per programme (R’000)

Programme R'000	Final Appropriation	Shifting of funds	Virements	Expenditure	Variance
1. Administration	81 848	0	4 971	81 226	622
2.Outcomes Monitoring and Evaluation	89 343	0	-382	83 950	5 393
3. Institutional Performance Monitoring and Evaluation	66 111	0	0	64 950	1 161
4. National Planning	88 303	0	-4 589	70 784	17 519
5. Youth Development	408 237		0	408 237	0
Total	733 842	0	0	709 147	95

7.1.2 Medium Term Expenditure Estimate

The Department of Planning Monitoring and Evaluation’s overall budget for the 2015/16 financial year is R717.7 million which decreased as compared to the allocation of R733.8 million in 2014/15 financial year. Budget cuts measures introduced by the National Treasury in October 2014 impacted on the Department’s budget over the medium term. Over the medium term period, the Department reduced its budget by approximately R15 million per annum due to competing demands. Measures adopted include interventions to scale down the implementation of some programmes, the identification of programmes that can be implemented through donor funding, the moratorium on the filling of less critical posts and the assignment of additional responsibilities to existing staff or units.

Table 1: Budget per programme

Programme	Revised Estimates	Medium-Term Expenditure Estimate
R million	2014/15	2015/16	2016/17	2017/18
Administration	81.9	69.8	74.1	78.5
Outcomes Monitoring and Evaluation	89.7	85.6	88.2	92.7
Institutional Performance Monitoring and evaluation	61.6	59.6	63.5	67.6
National Planning	88.3	88.2	102.1	103.3
National Youth Development	412.3	414.5	410.8	442.4
Total	733.8	717.7	738.6	784.6

Source: National Treasury 2015

7.2 Programme performance

Due to national macro organisation of the State that took place after general election, the Department of Performance, Monitoring and Evaluation merged with the National Planning Secretariat, and the Youth Desk to become the new Department of Planning, Monitoring and Evaluation. In the previous years, the Department used to have four programmes. The merger resulted in the Department having five programmes which are as follows:

Programme 1: Administration

The programme is responsible for providing strategic leadership, management, administrative, financial and human resource services to enable the Department to achieve its strategic and operational goals. The programme is organised as follows: Departmental Management, Internal Audit, Corporate and Financial Services and Information Technology Support.

The budget allocated for the programme was R81.848 million. An expenditure on the programme was R81.226 million with the variance of R622,000. The Department spent 99.2% of the budget on this programme. The programme had fifteen targets in the year under review. Nine targets were achieved and four partially achieved. Targets on MPAT improvement plan and vacancy rate below 10% was not achieved.

The spending focus under the programme was on the Department developing and submitted both the Strategic Plan and Annual Performance Plan to the National Treasury and tabled to Parliament on appropriate time. Moreover, as part of monitoring quarterly performance, the Department submitted four progress reports within 30 days after every quarter to the National Treasury. The Communication Plan was approved and achieved 70% of activities of what was anticipated in the plan. The Management Performance Assessment Tool and audit findings were produced and approved.

Annual implementation audit plan was submitted to the Audit Committee for approval by 30 June 2014. All four internal audit reports were submitted to the Audit Committee. Human resource management partially achieved a target on vacancy rate with 12% average at the end of financial year. Normal high turnover of staff impacted negatively on the target and the end of the term of the National Planning Commission.

7.2.2 Programme 2: Outcome Monitoring and Evaluation (OME)

The main purpose of the programme is to coordinate Government’s strategic agenda through the development of performance agreements between the President and Ministers, facilitation of the development of plans or delivery agreements for priority outcomes, and monitoring evaluation of the implementation of the delivery agreements. The programme has two sub-programmes, which are Outcomes Support, and Evaluation and Research.

The budget allocated for the programme was R89.343 million and with an expenditure of R83. 950 million which is 94.0% of budget spent. Variance on the allocated budget was R5.393 million. Under-expenditure was as a result of sub-programme outcome support with R5.158 million. The spending focus on the programme was on completing the process of linking performance agreements with the Medium Term Strategic Framework in collaboration with coordinating departments. In addition, spending focus was on the process of President signing the new performance agreements with the Ministers which were informed by the MTSF and 14 outcomes. The Department produced a 14 outcomes report in the 2014/15 financial year.

The Secretariat was established as a response to developments in the mining sector. The Department produced monitoring reports on the Special Presidential Package (SPP) in revitalising mining towns. The Department continuously monitors quality of the management in all three spheres of government. During the year under review, the Local Government Management Improvement Model (LGMIM) was approved and 29 scorecards were produced. The target on LGMIM was exceeded as more municipalities have shown interest in participating in the tool. A progress report on LGMIM was submitted to the Outcome 9 Implementation Forum. A total of 33 data forums were convened by the end of the financial year.

The national evaluation plan which enables the Department to conduct evaluations of government policies and programmes was approved. The Department approved 2 evaluation plans for two provinces whilst its target was to achieve 5 plans. Evaluation reports were produced according to the set targets. Research strategy was developed and submitted to the Accounting Officer. The Department completed research diagnostic assignments during the year under review.

7.2.3 Programme 3: Monitoring and Evaluation System Coordination and Support (M&E Systems)

The purpose of the programme is to coordinate and support an integrated Government-wide performance and evaluation system through development and capacity building. The aim is to improve data access, data coverage, data quality and data analysis across Government. The programme consists of the following sub-programmes: Programme Management Performance Monitoring and Support, Presidential Frontline Service Delivery Performance Monitoring Support, Monitoring and Evaluation Policy and Capacity Building.

The programme was allocated final appropriation of R66.111 million and it realised an expenditure of R64.950 million, which is 98.2% of budget spent. A variance was R1.161 million from the allocated budget. Variance was as a result of sub-programme on Management for Institutional Performance and Monitoring with R459,000 and Management Performance Monitoring and Support with R702,000.

More spending focus was on the Department contributing in improving the quality of management practices in government departments. The Management Performance Assessment Tool (MPAT) in the public service was updated and approved by the Director-General in July 2014. A total of 147 of 153 departments completed and signed off the MPAT. The MPAT 2014 consolidated report was submitted to Cabinet. In addition to consolidated MPAT, the Department submitted four monitoring reports to the Forum for South African Directors-General (FOSAD).

Furthermore, the Department anticipated strengthening operations management practices in the public service. Four departments (South African Revenue Service (SARS), Justice, Home Affairs and Transport) were recruited to participate in strengthening operations management in the public service. The Department produced a Draft Assessment Report on the strategic and annual performance planning of the departments. The Report was not signed as evaluation took longer than expected. Alignment letters were written to all the departments on their strategic and annual performance plans.

The Department produced Citizen-Based Monitoring Support programme progress reports and four learning publications were made available on the website. One of the objectives is to utilise the Presidential Hotline as an effective monitoring tool. In measuring performance on the hotline, the Department produced and submitted four case resolution reports on Presidential Hotline to FOSAD Management Committee (Manco), Governance and Administration and Provincial Coordination Clusters. The Hotline exceeded its targets by producing 39 of anticipated 10 short case studies and four complains trend reports.

Measuring the quality of the frontline service delivery remains an integral part of government. The Department revised tools and guidelines for the Frontline Service Delivery Monitoring (FSDM) for 2015/16 which were available on the website. A total of 123 facilities were monitored and passed quality assurance with site monitoring reports. The Department developed an integrated Monitoring and Evaluation Capacity Development strategy and implementation plan. All reports on quarterly basis were approved on the strategy.

7.2.4 Programme 4: National Planning

The aim of the programme is to develop the country’s long-term vision and national strategic plan and contribute towards better outcomes in government through better planning, better long term plans, greater policy coherence and clear articulation of long terms goals and aspirations. The sub-programme is the National Planning Commission Secretariat. The budget allocated for the programme was R88.303 million. Expenditure on the programme was R70.784 million with a variance of R17.519 million, which accounts for 80.2% of budget spent.

The Department oversees the implementation of the National Development Plan and contributed in improving outcomes in government through improved planning. During the year under review, the Medium-Term Strategic Framework was approved and furthermore 94 awareness events on the framework were undertaken. The Department produced 3 implementation plans for pilot projects on the Operation Phakisa and Urban Innovation projects and Land Reform. Draft discussion document on Planning Framework and System was submitted to Minister.

The programme manages and facilitates research and policy processes on long term development issues and provides technical support. Two research studies were completed on collaborative analysis of Labour Intervention Effectiveness to inform the setting up of the observatory proposed in chapter 8 of the NDP. The Department completed an annual report on the NDP implementation for 2014-2015 financial year.

7.2.5 Programme 5: National Youth Development Programme

The main purpose of the programme is to develop and implement youth policy and to provide oversight over funds transferred to the National Youth Development Agency (NYDA). The budget allocated on the programme was R408.237 which spent 100%. The main reason for 100% expenditure on the budget was funds being transfer red to the NYDA. All targets under the programme were not achieved. This might be as a result of the programme having been newly established in the Department. There was no expenditure incurred on the programme other than transfer payment to the NYDA.

NATIONAL YOUTH DEVELOPMENT AGENCY

8.1 Mandate of the NYDA

The NYDA is a South African Youth Agency established primarily to tackle challenges faced by the country’s young people. The institution was established to be a single, unitary structure, to address youth development issues at all spheres of government. The existence of the NYDA should be located within the broad context of South Africa’s development dynamics. Similar to many developing countries, South Africa has a large population of youth with those between the ages of 14 and 35 constituting 42 per cent of the total population.

The Agency derives its mandate from legislative frameworks, including the National Youth Development Agency Act, 2008 (Act of 2008) (NYDA Act), the National Youth Policy (2009-2014) and the draft Integrated Youth Development Strategy. The Agency assumed and improved the operational platform developed by both Umsobomvu Youth Commission and the National Youth Commission, which rendered the Agency operational with immediate effect. The mandate of the Agency are as follows:

Lobbying and advocating for integration and mainstreaming of youth development in all spheres of government, the private sector and civil society.
Initiating, implementing, facilitating and coordinating youth development programmes.
Monitoring and evaluating youth development interventions across the board and mobilising youth for active participation in civil society engagements.

Budget allocated and expenditure
1. Summary and Analysis of Annual Financial Statements

The NYDA is primarily funded through funds appropriated in terms of the annual Appropriation Act (and the Adjustments Appropriation Act). The NYDA’s main appropriation is transferred through budget vote of the Department of Planning, Monitoring and Evaluation. In terms of the Estimates of National Expenditure, the budget allocated to the Agency was R408.2 million for 2014/15 financial year. The budget allocations are as follows over the medium term:

Programme	Allocated	Medium-Term Expenditure Estimate
R million	2014/15	2015/16	2016/17	2017/18
National Youth Development Agency	408.2	409.8	405.8	437.2
Total	408.2	409.8	405.8	437.2

Source: National Treasury: ENE 2015

Appropriation per programme (R’000)

Description	2014/15 final budget	2014/15 Actual expenditure	Variance
Economic Participation	R72 124	R77 789	(R5 764)
Education and Skills	R73 944	R78 780	(R4 836)
Health and Governance	R5 973	R8 775	(R2 802)
Policy and Research	R115 794	R122 334	(R6 540)
Governance	R148 910	R148 247	R662 582

Programme Performance

National Youth Development Agency had five programmes which are as follows:

8.3.1 Programme 1: Economic Participation

The main purpose of the programme is to enhance participation of young people in the economy through targeted and integrated programmes. The programme aims to facilitate and provide employment opportunities for young people, to enhance the participation of young people in the economy, aimed at increasing job creation, entrepreneurship participation and skills development and to provide business support to young people.

The budget allocated for the programme was R72.124 million and the actual expenditure of the programme was R77.789 million. There was an overspending on the allocated budget by R5.674 million. The programme has five targets and all were exceeded. The programme is designed to stimulate entrepreneurship among the South African youth by providing grant funding, coupled with business development support services. The grant funding programme is doing exceptionally well in attracting more young people aspiring to become entrepreneurs.

A total number of 1 034 young people aspiring to own enterprise received grant funding. The Agency exceeded the predetermined target of 500 on youth aspiring to own enterprise. Exceeding the target clearly demonstrates that youth are more interested and have passion of owning businesses. Moreover, a total of 62 916 young people were supported through business development support services. As part of developing community through youth activities, 23 communities received facilitation on community development participation. The programme created 4 343 sustainable jobs. The Agency facilitated 3 000 jobs placement, thus creating job opportunities.

8.2.2 Programme 2: Education and Skills Development

The purpose of the programme is to promote, facilitate and provide education and skills development opportunities to young people to enhance their socio-economic well-being with the objective of facilitating education opportunities. The aim is to improve access to quality education and to facilitate and implement Youth Build, job-preparedness training, the provision of scholarships and assistance to young people with rewriting their Matric.

The budget allocated for the programme was R73.944 million. Expenditure incurred on the programme was R78.780 million, which reflects over spending to the value of R4.836 million. The Agency exceeded all seven targets on education and skills development programme. A total of 5 319 young people enrolled with the NYDA (Grade 12) Matric Rewrite programme. The Solomon Mahlangu Scholarship Programme was launched, aiming at supporting needy young people who deserve scholarship support to undertake higher education studies. Target was exceeded on the Solomon Mahlangu Scholarship Programme, which is critically important for the country which is confronted with socio-economy challenges amongst the youth. Comparing achievements of target with the 2013/14 financial year, there was an increase of 300 youth supported through scholarship over a set target of 286. Preferences on the criteria are students from rural backgrounds, who passed matric.

Furthermore, 937 949 young people were supported through individual and group career guidance activities. The target was exceeded with 167 949. Variance on the original target was as result of partnership between the Department of Basic Education and provincial education departments. Approximately 2 342 young people participated in the structured Youth Build programmes. A total of 12 490 young people enrolled in the National Youth Service (NYS) volunteer programmes. In addition, 22 393 young people were supported through life skills.

8.2.3 Programme 3: Health and wellbeing

The purpose of the programme is to initiate interventions that help in increasing awareness of the healthy lifestyles that promote good health practices among the youth of South Africa. The strategic objectives are as follows: to facilitate access to the health and well-being programme, and to provide health and wellbeing interventions to young people.

The budget allocated for the programme was R5.973 million with an expenditure of R8. 775 million incurred. The programme have two planned targets which were achieved. The Agency targeted 5 500 young people for accessing health and wellbeing programmes. The Agency undertook various health and wellbeing interventions to improve health minds and body of young people, however they managed to exceed the target with 6 996. It appears that more young people were attracted to the programme in an effort to improve their health condition. The programme targeted in-school learners, as well as those who are out of school in communities. Six campaigns and special projects were implemented during the year under review.

8.2.4 Programme 4: Research and Policy

The main aim of the programme is to create a body of knowledge and best practice in the youth development sector, and to inform and influence policy development, planning and implementation. The fundamental aim of this area is to ensure that policies and frameworks that drive youth development are developed, based on a body of knowledge and facts that are relevant to the developmental needs of the youth of South Africa.

The budget allocated for the programme was R115.794 million and R122.334 million expenditure was incurred. All eight targets were all achieved and some exceeded. The Agency designed and piloted seven new youth development projects. A total of 143 publications on youth development research and evaluation products were produced. The National Youth Employment Plan 2030 second final draft was developed and approved by the NYDA Board. There was enormous an increase in a number of young people receiving information on youth development through NYDA access points. A total of 1 252 959 young people received information using Agency access points.

Part of the legislative mandate of the Agency is to lobby key stakeholders to support and implement youth development programmes. In 2014/15 financial year, the agency lobbied 44 organs of state and private sector to establish youth directorates and implement youth programmes. In addition, the agency hosted 106 dialogue sessions with young people. Mobilising and leverage financial resources from third parties is the mandate of the Agency. A total amount of R95 290 million was raised to support youth development programme. The annual target was achieved and exceeded by 10.8% due to the deliberate effort taken by staff to leverage resources from other stakeholders.

8.2.5 Programme 5: Governance

The goal is to ensure efficient and effective utilisation of resources through provision of governance, technology and systems, business operations systems, human capital, financial management system that adheres to relevant legislative requirements for public funded entities.

The budget allocated for the programme was R148.910 million. Annual expenditure was R148.247 million with the variance of R662, 582. All six targets were achieved. There was vast improvement on the programme as compared to achievement of the targets of 2013/14 financial year. The Agency achieved 94% on the implementation of phase 1 and phase 2 on the roadmap in reviewing identified policies and guidelines. In the 2014/15 financial year, 473 employees received training on the approved policies of the NYDA. In addition, 72 information dissemination access points were established. The target was exceeded due to Mpumalanga Department of Social Development contributing towards providing 11 access centres.

AUDITOR-GENERAL OUTCOMES

The Auditor-General (AG) had 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 2015. The financial statements are in accordance with Modified Cash Standards prescribed by National Treasury and the requirements of the Public Finance Management Act (PFMA).

9.1 Predetermined objectives

The Auditor-General did not identify any material findings on the usefulness and reliability of the reported performance information for the following programmes: Outcome Monitoring and Evaluation, Institutional Performance Monitoring and Evaluation; and National Planning Commission.

9.1.1 Achievements of planned targets

The AG referred to the annual performance report on page (s) 21 to 53 for information on the achievement of planned targets for the year. Both the Department of Planning, Monitoring and Evaluation and the National Youth Development Agency had received clean audits for the 2014/15 financial year.

9.1.2 Adjustment of material misstatements

The AG identified material misstatements in the annual performance report submitted for auditing on the reported information for Programme 2: Outcomes Monitoring & Evaluation, and Programme 4: National Planning. The management of the Department subsequently corrected the misstatements. The AG did not identify any material findings on the usefulness and reliability of the reported performance information.

9.1.3 Compliance with legislation

The Department complied with applicable laws and regulations regarding financial matters, financial management and other related matters. The AG did not identify any instance of material non-compliance with specific matters in key legislation.

9.1.4 Internal Control

Internal control in the Department was considered to be relevant to AG audit of the financial statements, performance report and compliance legislation. The AG did not identify any significant deficiencies in internal control.

OBSERVATIONS

The Portfolio Committee noted the progress made on the commitments made on the Annual Performance Plan 2014/15 financial year. Moreover, the Committee commended the Department of Planning, Monitoring and Evaluation on achieving clean audit for consecutive years. Achievement on the clean audit over the multi-year assessment clearly demonstrates the Department is leading by example.

The Department facilitated the signing of the Performance Agreements between the President and Ministers based on the commitment made on the Medium Term Strategic Framework. The National Treasury shifted responsibility of accessing departmental strategic plans to the DPME during the year under review. The Department assessed departmental strategic and annual plans to be aligned with MTSF and NDP.

The Committee commended the National Youth Development Agency for achieving a clean audit for the first time since its establishment in 2009. The Committee believes that the Agency is on a good trajectory in executing its mandate and is fully coordinating, evaluating and monitoring all programmes aimed at integrating the youth into the economy and society in general. The Committee further noted the achievement of 93% of its key performance indicators during the period under review. Performance accounts to 7% improvement as compared to 86% key performance during 2013/14 financial year.

RECOMMENDATIONS
1. Department of Planning, Monitoring and Evaluation

The Committee recommends the following:

The Department should continuously strive to improve its financial and non-financial performance. The Department should maintain standards of achieving clean audits over the medium term.
The Department should fill all critical funded positions within prescribed period as per the Public Service Regulations in order to be able to execute its mandate. The Department must ensure vacancy rate is below acceptable level of 10% in 2015/16 financial year.
Grading of certain positions must be speeded up to address delays in the filling of posts emanating from the absorption of the National Planning Secretariat into the reconfigured Department.
The function of evaluating Heads of Departments, which was transferred from the PSC to the Department, must be given urgent attention so that efficiency is achieved in the running of the public service.
The Department should continuously strengthen its capacity to monitor quality of the management in three spheres of government. The Committee urged the Department to put more focus in monitoring quality of the management in the local government as they are the main drivers of developmental local government.
The Department must on an annual basis publish the Management Performance Assessment Tool mid-September to assist Portfolio Committees to utilise its findings during the Budget Review Recommendations Reports. The MPAT should enable Members of Parliament to assess the state of quality management in the public service and further utilise it as evidence to exercise oversight accountability over the Executive.
The Department should intensify monitoring activities on the Frontline Service Delivery Monitoring Tool and Citizen Based Monitoring as way of improving efficiency of service delivery in government facilities. More emphasis should be placed on the facilities of the Departments of Health, Home Affairs and the South African Social Security Agency (SASSA).
The Department should spend its allocated budget on Programme 4: National Planning in 2015/16 financial year in order to be able to contribute towards better planning to help development. High vacancy rate should be reduced in the programme.
The Department should work towards achieving a target of 2% of employing people with disability and also at SMS level. The Committee commends the Department in achieving target of 50% of women in SMS position. The target should be maintained and exceeded.
The Department must present the details and the findings of the Local Government Management Improvement Model (LGMIM).
The Department must make a presentation on the assessment of the resolution rate on the Presidential Hotline and the Frontline Service Delivery Model (FLSDM).
The Monitoring of Performance Assessment Tool (MPAT) must not only evaluate the Executive Authorities but it must be used to assess the Accounting Officers as well.
The Department must ensure that after the Executive Authorities sign their Service Delivery Agreements with the Presidency they also contract their Accounting Officers immediately.
Consequence management must be employed on facilities managers who fail to effect the recommendations for improvements.
The Department must ensure that the outcomes of the Citizen-Based Monitoring are shared with the citizens and affected communities to ensure accountability and to assure citizens that their concerns will be addressed. The findings should also feature in the Communication Strategy of the Department.
Given the vast array of responsibilities over Government and the public service, the Department is under-funded. Therefore, additional funding must be allocated to the Department as a matter of urgency.

National Youth Development Agency (NYDA)

The Committee recommends the following:

The NYDA should consistently strive to achieve clean audits over the multi years and utilise scarce resources efficiently towards advancing youth aspirations and development in the country.
The NYDA should redouble its efforts in stimulating youth to become entrepreneurs through provision of grant funding. All young people in all nine provinces must enjoy equitable share of the programme. Gender representation must be adhered to ensure 50/50 representivity when providing funding for young people intending to own businesses. On an incremental basis and taking into account high demand on the programme, the National Treasury should provide necessary financial resources on the grant funding programme to avoid overspending.
The NYDA should develop a reliable youth entrepreneur database system for those who have benefited through the grant funding programme. The NYDA should take the lead in ensuring interoperability of youth entrepreneur database system and ensure synchronization of the system with other government departments and agencies. This will minimize multiple institutions providing funding to similar companies.
The NYDA should increase its targets on the Solomon Mahlangu Scholarship Programme to reach more young people who passed matric exceptionally well, and who deserve scholarship to further their studies. The NYDA should ensure young people from remote rural schools get access to and benefit on the scholarship programme. The NYDA should make available information on all bursaries of other institutions on their website so that young people have access and options to choose.
The NYDA should expand its services by establishing more youth branch offices in the local municipalities in order to attract, provide services and become well known to young people in South Africa.
Operating hours for the NYDA must be extended in youth concentrated areas like townships, to enable young people to receive its services.
The DPME should speed up the process of implementing the National Youth Policy and review the National Youth Development Agency Act 54 of 2008 as part of reengineering its youth mandate. The Agency should prioritise review of the legislation and table amendments by 2016.
The Committee believes that the NYDA is on right trajectory in championing the youth development and removing negative mindset about the institution.
The NYDA should strive to recoup monies owed in the loan book as part of the implementation of four point plan.
Branding of the NYDA at the facilities of beneficiaries must be given urgent attention in order to create awareness on the NYDA activities and assistance.
The Agency must deal efficiently with the occurrence of irregular expenditure.

Conclusion

The Portfolio Committee is of the opinion that if these recommendations could be implemented, there will be greater progress concerning the objectives of the Department in monitoring and evaluating the entire public service. The National Youth Development Agency must continuously strive to redouble its efforts in uplifting the lives of young people in South Africa. The Portfolio Committee will continuously exercise its oversight to ensure that objectives and set targets by the sector are achieved on a quarterly basis.

Report to be considered.

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