Standing Committee on Appropriations Quarter 4 Expenditure 2012/2013 19 June 2013 The Presidency...

Standing Committee on Appropriations

Quarter 4 Expenditure 2012/2013

19 June 2013

The Presidency The Presidency 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

AENE Budget for 2012/13 (R’000)

Shifts and virements (post AENE) TOTAL Administration OME M&E

Systems PSO

Compensation -2 990 -1 300 -1 430 - -260

Goods and Services 2 990 1 300 5 480 - -3 790

Capital Assets - - - 8 -8

TOTAL - - 4 050 8 -4 058

Economic classification TOTAL

Programme

Administration OME M&E Systems PSO

Compensation 88 959 23 296 29 142 9 869 26 652

Goods and Services 69 615 23 044 18 643 3 425 24 503

Capital Assets 15 585 13 500 755 75 1 255

TOTAL 174 159 59 840 48 540 13 369 52 410


Reasons for budget shifts and virements

• All virements were done within the 8% limit for virements in terms of section 43(2) of the PFMA

• Savings on compensation due to:• Difficulties in finding suitable candidates for some specialist positions,

leading to recruitment processes taking longer than planned• A number of advertised positions were filled by successful internal

candidates, resulting in new vacancies • Delay in implementation of Bargaining Council resolution regarding salary

levels 9/10 and 11/12, which was budgeted for• Some delays in obtaining pre-employment security screening results,

which delayed some of the appointments• Delay in implementation of HoD assessment programme (awaiting issuing

of new policy by DPSA)


Reasons for budget shifts and virements continued….

• Under Programme 1, savings on compensation moved to ICT unit for additional software licences

• Under Programme 2, savings on compensation moved to goods and services to fund the 20-year review and FOSAD research project on concurrent norms and standards

• Some savings from Presidential Hotline (SITA and call costs lower than expected) moved to goods and services under OME branch, to fund the 20 year review and research on norms and standards for concurrent functions


Expenditure overview: monthly expenditure (R’000)


Expenditure overview: overall expenditure for the year


Expenditure overview: explanation• Department spent 92% of its overall budget by the end of the 2012/13

financial year• Increase in expenditure towards the end of the financial year largely due to

expenditure on IT equipment, evaluations and research projects:• We were required to engage with SITA to plan our IT infrastructure

requirements. These engagements were only finalised in June 2012 and the procurement of IT equipment could only start after that. This explains why our IT expenditure largely took place towards the end of the financial year

• Evaluation programme is still relatively new - National Evaluation Policy Framework was approved in November 2011 and the 2012/13 national evaluation plan was only approved in June 2012 – this explains why expenditure on evaluations largely took place at the end of the financial year

• The 2013/14 evaluation plan was approved in November 2012 and preparations are already under way for implementation. Therefore expenditure on evaluations will be more evenly spread over the 2013/14 financial year


Expenditure overview: explanation continued…

• DPME was requested to carry out 20 year review and norms and standards research project after the beginning of the financial year, and expenditure on these two projects has therefore largely taken place towards the end of the financial year

• Reasons for under-spending of R13.9 million (8% of budget):• Funds committed but expenditure delayed: R7.8m (4.5%)

• Delays in delivery of ICT equipment and finalisation of software development: R2.7m

• R5.1m on 20-year review and Norms and Standards project

• R2.7m (1.6%) in under-expenditure on compensation of employees (reasons provided earlier)

• R3.4m (1.9%) savings on Hotline expenditure (SITA and call costs lower than expected)


Filling of posts (197 funded for the 2012/13 financial year)


Filling of posts continued….• 137 Posts filled (against 195 funded posts) by 31 March 2012• Department created new posts in July 2012 to provide additional

capacity for Local Government Performance Monitoring while other posts were unfunded. Total number of funded posts increased to 197

• 173 posts filled by March 2013. Increased to 185 posts filled by June 2013

• Majority of newly created post filled. Vacancies relate mostly to staff turnover

• All remaining vacant funded posts have been advertised and are in the process of being filled


Goods and Services


Goods and Services• Hotline expenditure:• Hotline transferred to DPME from Presidency on 1 October 2011• For 2012/13 budget DPME requested additional funding for Hotline for

additional call centre capacity, increased services from SITA and for calls made to toll-free number• Additional call centre capacity was been put in place during 2012

and additional services are being provided by SITA• Request for additional funding for 2012/13 was based on estimate from

SITA and estimate of cost of toll-free number (at time of transfer, telecoms operators had not yet invoiced for toll-free number)

• Actual SITA costs for increased call centre operators and increased services, and actual toll-free number costs have turned out lower than estimated (resulting in saving of R2.9 million against budget)


Capital Expenditure


Capital Expenditure

• DPME ICT infrastructure plan agreed with SITA in June 2012

• Procurement of hardware only started in July 2012

• Migration to ICT system completed by 31 March 2013. Migration to own telephone system to be completed by end of June 2013

• R2.7m unspent on ICT projects due to:• R1.9m in orders placed - delays in delivery of equipment• R0.8m due to delays in finalisation of PoA, MPAT and FSD systems


Conclusions on expenditure• DPME is a relatively new department• Approvals for evaluation programme only obtained after start of financial year

• DPME has now settled into multi-year budgeting and expenditure with planning and preparations taking place the year before expenditure takes place• It is now possible to start evaluation and research projects early in the financial

year, which will ensure a more even spread of expenditure• Corrective measures introduced to address under-expenditure:• For the budget for the 2013/14 financial year, the CFO has played a more direct

role in engaging with programme managers to ensure that budgets are realistic• The Department has also introduced monthly budget and expenditure meetings

to ensure more accurate budgeting and more rigorous expenditure monitoring in future

• Therefore from 2013/14 we expect that DPME expenditure will be more evenly spread over the financial year and that expenditure will be within 2% of budget

Quarter 4 Performance 2012/2013

The Presidency The Presidency Department of Performance Monitoring and EvaluationDepartment of Performance Monitoring and Evaluation


Programme 1: Administration

• The 3 targets which were partially achieved are as follows:• 3rd Quarterly risk management report compiled and presented to Risk

Management Committee and Audit Committee - Risk management committee did not meet regularly as planned

• Detailed improvement action plan based on 2nd MPAT assessment approved by management and implemented by 31 March 2013- MPAT results were challenged and awaiting the final scores

• Enhancement and maintenance implemented according to the System Maintenance Plan (Projects dashboard application)- System developed. Skeletal Intranet sites have been deployed and are operational. The APP module of the application is still in testing phase

Number of targets 21 %

Targets achieved 16 76.19

Targets partially achieved 3 14.28

Targets not achieved 2 9.52


Programme 1: Administration cont…The 2 fourth quarter targets not achieved are as follows:

• Development indicators application prototype developed - The project was deferred to next financial year due delays in the design of the plan

• Help desk service application - Enhancement and maintenance implemented according to the System Maintenance Plan - The project was Incorporated into a broader project to develop a system for corporate services


Programme 2: OME

• Target partially achieved: relates to 9 evaluation reports approved by Steering Committee - Only 8 proposals for evaluations were recommended to and approved by Cabinet. Two reports were approved by the evaluation steering committees in May 2013. Two will be approved in July 2013 and one in August 2013.One will be approved in December 2013 and one In January 2014.One has been withdrawn by the department responsible (National School Nutrition Programme)




Targets not achieved 0 0


Programme 3: M&E Systems

Partially achieved target relate to: •Development indicators reports published - The development indicators report was produced but not yet published due to editing that took longer than initially plannedTargets not achieved related to:•Draft Result Bill submitted to Cabinet for approval by March 2013 -There are different views on the need for a Results Bill amongst the key centre of government departments. The Department is now working on a “green paper” on M&E as a precursor for a possible Results Bill• GWME framework approved by Cabinet in March 2013- This has now been

combined with the process of producing a “green paper”


Targets achieved 9 75




Programme 4: PSO

• Partially achieved target relates to:• Submit final CBM Policy framework to Cabinet - The framework was

signed off by Minister and tabled at the G&A cluster, Cabinet requested that it be processed through G&A working session




Targets not achieved 0 0


Department Overall





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Standing Committee on Appropriations Quarter 4 Expenditure 2012/2013 19 June 2013 The Presidency...

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