ATC151029: Budgetary Review and Recommendations Report (BRRR) of the Portfolio Committee on Public Service and Administration as well as Performance Monitoring and Evaluation on Statistics South Africa, 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 STATISTICS SOUTH AFRICA, DATED 15 OCTOBER 2015

 

1. 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 Report of the Statistics South Africa tabled as follows:

1. 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:

• 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 Portfolio Committee 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 the implementation of the PSC recommendations in the entire public service
• Participating in the international treaties which impact on the work of the Committee.

1. 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 assesses 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 and 2015.
• Strategic Plans of the Statistics South Africa 2015-2020.
• Annual Performance Plans 2014/15 of the Statistics South Africa.
• Annual Report 2014/15 of the Statistics South Africa.
• Auditor-General South Africa’s outcomes of audit findings 2014/15.

 

1. NATIONAL DEVELOPMENT PLAN VISION 2030

The National Development Plan highlights the need for South Africa to build a state that is capable of playing a developmental and transformative role. This requires the state to formulate and implement policies that support that role. The NDP and the Medium Term Strategic Framework are informed by statistical information provided by Statistics South Africa, which publishes more than 200 statistical releases per year. The publications present statistical research that measures the development and transformation of the economy and society in a range of context.

Changing economic and societal realities have expanded the demand for statistical information: more detailed statistics are needed and more frequently if policies are to be responsive and effective. Statistics in the public domain must be of high quality. Responding to the increased demand for high quality statistics will require a national effort, and collaboration and partnerships between the producers and the users of statistics.

 

1. MANDATE OF THE STATISTICS SOUTH AFRICA

Statistics South Africa is a national government department accountable to the Minister in the Presidency: Planning, Monitoring and Evaluation. The department’s activities are regulated by the Statistics Act (1999), which mandates the department to advance the production, dissemination, use and coordination of official and other statistics to assist organs of state, businesses, other organisations and the public planning, monitoring and decision making. The Act also requires that the department coordinate statistical production among organs of state in line with the purpose of official statistics and statistical principles.

 

1. STRATEGIC PRIORITIES

Statistics South Africa aims to contribute towards realisation of the ideals of the National Development Plan (NDP) by providing accurate data policy implementation to overcome social challenges such as inequality, poverty and unemployment. Stats SA work in conjunction with all stakeholders in the country to provide accurate statistical information on economic, demographic, social and environmental factors for proper NDP implementation. The institution has identified the following strategic priorities which are:

• Expand the statistical information base by increasing its depth, breadth and geographic spread
• Lead the development and coordination of statistical information within South Africa National Statistics System (SANSS)
• Enhance public confidence and trust in statistics
• Improve productivity and service delivery
• Invest in the learning and growth of the organisation
• Promote international cooperation and participation in statistics 

 

 

 

1. OVERALL PERFORMANCE AND ACHIVEMENTS

The following are some of overall achievements of the Stats SA in 2014/15:

• Annual release on the 2013 surveys: agriculture, electricity, gas and water supply.
• Annual data on public sector spending. Annual releases published included statistics of national government; extra-budgetary accounts and funds; provincial government; higher education institutions; consolidated general government; capital of the public sector; financial census and non-census of municipalities.
• Conducted Living Condition Survey 2014/15
• An annual report on labour market dynamics was released early than scheduled.
• Compilation of mid-year population estimates and the compilation of a paper on orphanhood.
• Developed thematic report health and three monthly publication on tourism and migration.
• Provision of 100% methodological support to the survey areas, and research reports on the usability of small-areas statistics for household-based survey. Promotional material in the form of posters and articles on standardisation was developed.
• Provide integrative technical support and advisory services for policy planners and development practitioners and participates in knowledge research and innovation on key development themes.
• A total 338 publications consisting of StatsToday (233), Pulse (50) Stats Update Bullentin (50) External Newsletter (3) and Stats SA articles.
• Data collection through questionnaires for the Quarterly Labour Force Survey (QLFS): 136 309; the General Household Survey (GHS): 33 127 and the Victims of Crime Survey (VOCS): 29 034.

 

 

 

 

 

1. DEPARTMENT PROGRAMME PERFORMANCE

8.1 Statistics South Africa

8.1.1 Budget Allocated and Expenditure 2014/15

The budget appropriated to the Statistics South Africa for the 2014/15 financial year was R2 242 514 billion. Expenditure was R2 156 435 billion for all the programmes which is an estimated of 96.2%. The bulk of the budget was allocated to the administration programme (R926 899 million), followed by Statistical Collection and Outreach (R530 167 million) and Statistical Support and Informatics programme (R218 624 million).

Appropriation per programme (R’000)

Programme R'000	Final Appropriation	Shifting of funds	Virement	Expenditure	Variance
1. Administration	926 899	0	12 483	840 820	86 079
2.Economic Statistics	197 460	0	(5 295)	197 460	0
3. Population and Social Statistics	154 726	0	4 755	154 726	0
4. Methodology, Standard and Research	56 480	0	(3 737)	56 480	0
5. Statistical Support and Informatics	218 624	0	(16 970)	4	0
Statistical Collection and Outreach	530 167	0	5 506	530 167	0
Survey Operations	158 158	0	3 258	158 158
Total	2 242 514	0	0	2 156 435	79

 

 

 

 

 

 

 

Budget summary: Medium Term

Programme R'000	Medium term expenditure estimate
	2015/16	2016/17	2017/18
1. Administration	791.3	705.2	744.0
2.Economic Statistics	214.4	226.5	240.1
3. Population and Social Statistics	133.7	130.6	138.1
4. Methodology, Standard and Research	66.3	69.9	74.2
5. Statistical Support and Informatics	250.0	261.6	276.0
Statistical Collection and Outreach	553.6	571.3	605.6
Survey Operations	236.0	533.8	199.9
Total	2 245.2	2 498.0	2 278.0

 

8.1.2 Programme Performance

Statistic South Africa has seven programmes which are as follows:

1.  Programme 1: Administration

The purpose of the programme is to manage the department and provide centralised support services and capacity building. Coordinate statistical production among organs of state in line with the purpose of official statistics and statistical principles. The programme contributes to two strategic objectives: leading the development and coordination of statistical in the SANSS and improving productivity and service delivery.

The programme has spent R840 820 million of the total allocated funds. Of the total expenditure, an amount of R211 594 million was spent on compensation of employees, whilst an amount of R293 682 million was spent on goods and service. The main cost drivers on the programme are good and services, and property payments. The programme achieved 86% of its targets and 3% achieved later than expected.

Challenges for not achieving 100% targets was due to delay in submission of the Amendment Bill to the Statistics Act to Cabinet, which had a negative impact on the development of statistical plans and contract challenges in the appointment of an author for the Millennium Development Goals report.

The overall programme performance has contributed to leading the development and coordination of statistical production in the South African National Statistics System (SANSS) by providing technical support and advice to SANSS partners, providing SASQAF and coordinating quality assessments against SASQAF. Statistics South Africa have developed the strategic plan and annual performance plan of the organisation. On quarterly basis performance programme information was monitored to track attainment of the predetermine targets. Internal audits were conducted during the year under review.

The sub-programme Management for Corporate Service key achievement include leading strategic initiatives such as the talent management programme, the new building project, monitoring the implementation of the corporate service strategy and work programme and review of recruitment and internship programmes. The sub-programme contributed to improved efficiency, effectiveness and good governance in the public sector. Furthermore improved statistical literacy at school level, tertiary level and within Stats SA and the SANSS.

1. Programme 2: Economic Statistics

The Economics Statistics programme aims to produce economic statistics to inform evidence-based economic development and transformation in line with internationally recognised practices. Programme Management for Economic Statistics provides strategic direction and leadership.  The programme has achieved 100% of its annual target.

The programme spent R197 460 million of the allocated funds. Of the total expenditure, an amount of R177 390 million was spent on compensation of employees whilst an amount of R18 676 million was spent on goods and services. The programme actual expenditure when compared against the benchmark was 100% when applying straight-line analysis.

Stats SA key achievements include monthly, quarterly and annual releases in line with the international Special Data Dissemination Standards. The programme inform economic planning, monitoring and decision-making by providing accurate, relevant and timely statistical information on the level of economic activity in relation to the primary, secondary and tertiary sectors of the economy, financial information on private sector businesses and government and information on sustainable resource use and management.

1. Programme 3: Population and Social Statistics

The purpose of the programme is to produce population, demographic, labor market and social statistics to meet user requirements in line with internationally recognised practices. Population and social statistics inform evidence based socio-economic development and transformation in line with internationally recognised practices. Programme 3 contributes to strategic objective in an effort to expand the statistical information base by increasing its depth, breadth and geographic spread.

The programme spent R154 726 million of its allocated budget. Of the total expenditure, an amount of R106 342 million spent on compensation of employees, whilst an amount of R47 000 was spent on goods and services. Actual expenditure compared against the benchmark spending was 100%. The programme has achieved 82% of its predetermined targets, of which 42% were achieved later than scheduled.

The programme adopted a focused approach to increasing relevance, coherence and comparability of various datasets, which impacted on the timely release of statistics. Challenges include incomplete and late submission of data from other departments and human resource and system constraints. The programme contributed to informing social and economic development planning, monitoring and decision-making by providing relevant, timely and accurate statistical information on living conditions, population dynamics, employment, crime and poverty level. Moreover, improved the comparability and accuracy of statistical information by reviewing and evaluating methodological compliance of statistical operations.

In 2014/15, sub-programme provided information on poverty levels and income and expenditure trends in South Africa. The information is critical for the planning of the country and fit well to Department of Planning, Monitoring and Evaluation. Thematic report on ICT was compiled and discussion documents on verification of household income and expenditure data were achieved. The Stats SA reprioritised its goal during the under review to include survey on Living Conditions for 2014/15. In addition to information published on quarterly basis, Stats SA release labour statistics on employment levels in the formal, non-agricultural sector and labour market trends in the country. An annual report on labour market dynamics was released in 2014/15 financial year.

1. Programme 4: Methodology, Standards and Research

The purpose of the programme is to provide expertise on quality and methodology for official statistics, standards for conducting surveys, and business sampling frames. In addition conduct policy research and analysis on emerging policy matters. The programme contributes to enhancing public confidence and trust in official statistics.

The programme has spent R56 480 million of the budget allocated. Of the total expenditure, an amount of R51 334 million was spent on compensation of employees, whilst an amount of RR1 334 million was spent on goods and services. Actual expenditure as compared against the benchmark spending was 100%. The programme achieved 91% of its predetermined targets, of which 4% were achieved later than scheduled.

Amongst key achievement in the year under review include providing strategic guidance on statistical methodology, monitoring the implementation of the Work Programme and Maintaining relations with the South African Revenue Service on the Business Register.

1. Programme 5: Statistical Support and Informatics

This programme aims to enable service delivery programmes by using technology in the production and use of official statistics. Furthermore promote and provide better access to official statistics. The programme contributes to enhance public confidence and trust in statistics and invest in the learning and growth of the organisation. 

The programme has spent R218 624 million of the allocated budget. Of the total expenditure, an amount of R102 419 million was spent on compensation of employees, whilst an amount of R96 582 million was spent on goods and services. The main cost drivers on the programme include publication services such as printing training manual and questionnaires  the programme actual expenditure when compared against the benchmark spending was 100%. A total of 91% targets were achieved of which 4% were later achieved. In general terms all targets were achieved.

The programme contributed to improving the measurement of the economy and society by providing and maintaining a frame for accurate sampling of households survey and a complete and up-to-date database of dwellings for planning and conducting of survey and censuses. The programme contributed to the editing, publishing and distribution services and a stable and functional network infrastructure and business modernisation in Stats SA.

In 2014/15, Stats SA edited 366 and designing of 200 products, the distribution of 713 074 products and the publication of the Stats in brief, the annual South Africa Statistics, the quarterly Bulletin of Statistics and 10 issues of Mbalo Brief.  A total of 205 statistical series were made available electronically in time series on user needs, and 413 322 questionnaires, statistical releases and training manuals were printed.

1. Programme 6: Statistical Collection and Outreach

The purpose of the programme is to provide statistical information to support policymakers. Manage stakeholders to provide effective communication services. Promote statistical development and cooperation in South Africa, Africa and the World.  The programme contributes in enhancing public confidence and trust in statistics; improve productivity and service delivery; lead the development and coordination of statistical production within the SANSS; invest in the learning and growth of the organisation; and promote international cooperation and participants in statistics.

The programme has spent R530 167 million of which is equal to 100% of appropriated budget. Of the total expenditure, an amount of R403 million was spent on compensation of employees, whilst an amount of R105 852 million was spent on goods and services. Cost drivers are fleet services (R19 803m), communication (R16 731m), operating lease (R46 652) and travelling costs (R13 946m). The contributing factor to cost drive was mainly due to surveys such as the Quarterly Labour Force Survey, General Household Survey, Domestic Tourism Survey, the Victims of Crime Survey and the Master Sample Survey.

The programme achieved 76% of the predetermined targets of which 1% were achieved later than anticipated. The programme contributed to increasing awareness and marketing, and communicating and disseminating official statistics to relevant stakeholders through effective stakeholder management, internal communication and public and media relations. Furthermore Stats SA contributed in expanding the statistical information database through integrated fieldwork, continuous data collection, stakeholder management, increased collaboration and strengthening partnership within SANSS, promoting the harmonisation of statistics in Africa, strengthening statistical capacity on the continent, promoting international statistical best practice and building international partnerships. 

 In terms of sub-programme on Provincial and District Office, key achievement included administering survey instruments for surveys, raising the profile and status of statistics at provincial and municipal levels. In addition sub-programme coordinate the Maths4Stats project, and providing training on the South African Statistical Quality Assurance Framework. A total of 93 MathsStats workshop were conducted during the year. Additional workshops were conducted in Eastern Cape, KwaZulu-Natal and Limpopo. Free State and North West conducted fewer workshop as anticipated due to human resource constraints.

1. Programme 7: Survey Operations

The purpose of the programme is to provide collection and processing support to produce official statistics. Conduct independent household survey monitoring and evaluation activities. The programme contributes in improving productivity and service delivery.

Programme has spent R158 158 million of which is 100% of the allocated budget. Of the total expenditure, an amount of R131 671 million was spent on compensation of employees, whilst an amount of R24 335 million was spent on goods and services. Cost drive on the programme was due to Master Sample Survey. The programme achieved 85% of its planned target in the Work Programme of which 3% were achieved later than anticipated and 8% were discontinued.

The programme contributed to informing social and economic development, planning, monitoring and decision-making and to increase the efficiency and effectiveness of survey operations. The Stats SA conducts periodic population censuses. During the year under review, Stats developed draft project charter, methodology project plan and operational plans. Sub-programme Survey Coordination, Monitoring and Evaluation monitors and assures the quality of field operations of households survey and censuses. The sub-programme compiled two monitoring and evaluation reports on continuous data collection and two on Quarterly Labour Force Survey (QLFS).

9 Observation and Key Findings

The Committee made the following observations:

1. The Committee commends Stats SA for receiving unqualified report. However, Stats SA has to improve its internal controls towards achieving clean audit in the medium term period. Stats SA have to improve on the identified material adjustment on the reported information for programme 5: Statistical Support and Informatics and programme 6: Statistical Collection and Outreach.
2. The Committee is of the view that Stats SA is performing well and its statistical information is adding value to government planning and policy making.
3. Vacancy rate is challenge due to critical technical skills required by some of the funded positions. The committee requested Stats SA to reduce the vacancy rate in the current financial year.

 

10. RECOMMENDATIONS

The Portfolio Committee recommends that:

1. The Statistics South Africa should provide a detailed brief to the Portfolio Committee on the Statistics Amendment Bill.
2. Sufficient resources on the new office building should be provided to the Stats SA to avoid virement or shifting of funds from one programme to another. Cost analysis must regularly be reviewed to adjust office plan with ever changing pricing building materials. Stats SA should work in collaboration with the Department of Public Works and the National Treasury to monitor the progress of the construction and ensure funding is available to complete the project.
3. All funded vacant posts should be filled in the 2015/16 financial year. The Committee noted that the vacancy rate in Stats SA is as a result of scarce skills in critical and technical positions. Stats SA should source and retain the scarce skills in order to execute its mandate.
4. Stats SA should collaborate with Department of Cooperative Governance and South African Local Government Association (SALGA) when releasing the financial statistics in the municipalities. The Department of Cooperative Governance should utilise information to improve financial status of the municipalities and for the benefit of efficient service delivery.
5. The Stats SA must attempt, if feasible, to report quarterly on the spending by municipalities to determine the improvement of quality of life and of services.
6. Stats SA should continue to build statistical capability and contribute towards building capable public service committed to improve lives of the people. Its statistical information must enable citizens, government and business to plan better and inform future development of the country.
7. Stats SA must formally introduce themselves to the Portfolio Committee and inform the Committee on its overall general and specific services.
8. Stats SA should report its quarterly performance to the Portfolio Committee immediately after month of each quarter of the year.
9. The Department of Planning, Monitoring and Evaluation should ensure Stats SA findings must be taken into consideration when government departments are planning for the strategic and annual performance plans. The National Planning in the Department should work closely with Stats SA to strengthen planning of country through evidence based
10. Stats SA must improve its employment strategy by ensuring representivity of women in senior management levels and people with disabilities.
11. Stats SA should conduct investigations into identified irregular, fruitless and wasteful expenditure relating to non-compliance with Treasury regulations.

The Audit Committee must quarterly monitor risks and ensure the implementation of commitments on corrective action by management.

1. The Senior Management must address the slow response in addressing the root causes of poor audit outcomes.
2. The Senior Management must administer the Consequences Management system to ensure that recurring challenges are addressed.

 

1. CONCLUSION

In conclusion, Stats SA was able to achieve substantial percentage of its targets, and in addition most of the programme allocated budget was spent 100%. Stats SA should continuously strive to expand its statistical information to guide and serve as evidence-based decision of government planning and policy making. The Committee was pleased with the notable progress on the programme performance of the Stats SA.

 

Report to be considered/not considered