Framework Programme Performance Information. Dr. Annatjie Moore Provincial Performance Management Directorate 12 June 2008

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1 Framework Programme Performance Information Dr. Annatjie Moore Provincial Performance Management Directorate 12 June 2008

2 Overview Budget Reform Process Legislative Framework Performance Management and the Framework Aims of the Framework Linkages with GWM&E, DPSA & Gov Departments Applicability of Framework Performance Information, Strategic and Annual Performance Plans Key Performance Concepts Performance Information Systems Other matters covered in the Framework: Roles and responsibilities, Publishing of Information

3 Budget Reform Process Measuring Value for money Three EEE Facilitate standardised Strategic and APP Credible Non-Financial Data Leading Indicators open domain Implement and refine process Pilot QP Reporting Draft QPR Discussion Documents Develop database Standardize Budget & Programme Formats Non-Financial Data Elements In Strat & APP and Annual Reports linked and standardized PERFORMANCE BUDGETING AND REPORTING ON RESULTS PFMA

4 LEGISLATIVE MANDATE The Public Finance Management Act (Act No 1 of 1999 as amended by Act 29 of 1999) stresses the need for accounting officers (and those to whom managerial responsibilities have been delegated) to regularly monitor and report on the performance of their Departments against the agreed budget programmes for the year. Treasury Regulation & (Strategic- Annual and Quarterly Performance Plans). This is but one element in a process designed to improve the use of limited financial resources in the delivery of services to communities.

5 What is PROGRAMME Performance Management? The objective of programme performance management is to provide a coherent framework for strategic planning and annual performance monitoring based on accountability in a decentralized environment. Programme Performance Management is the process that indicates how well an department is doing against its goals and objectives as set out in Annual Performance Plans. Performance information should help managers to understand how well an department and individuals are performing. Clear measures of performance allow reliable targets to be set, and people to be clear about what level of performance is expected.

6 Environmental changes Expenditure outcomes and new budget allocations Strategic direction changes Performance against budget and strategic plan Meeting reporting requirements - Treasury & PS Regulations ACCOUNTABILITY CYCLE Annual Review Annual Reports Strategic Plan Medium Term Budget Individual Performance Plans Monthly/QPR Reports Year 1 5 years Updated annually Includes budget information Covers critical areas for department Detailed focus on first year of strategic plan Includes output and service delivery information Expenditure trends 3 year forward estimates Strategic direction explained Previous year outcome incorporated when deciding resource allocation Staff have performance contracts & individual development plans Linked to departmental key objectives and outputs Indicate individual contribution towards achieving departmental objectives Progress against budget & implementing strategic plan Highlights departmental performance (financial & nonfinancial) against targets

7 Results Based System Business strategy Input Processes Conditions Legislation Environment Business practices Labour Output Tasks and activities Tasks and activities What is needed? Tasks and activities Tasks and activities Deliverable work output Receiving systems Measurement: How? Consequences Measurement: How much? Feedback Leaders of Learners 2004

8 Aims of Framework to enhance a performance management approach in government Clarify definitions and standards for performance information in support of regular audits of such information where appropriate Improve integrated structures, systems and processes required to manage performance information Define roles and responsibilities for managing performance information Promote accountability and transparency by providing Parliament, provincial legislatures, municipal councils and the public with timely, accessible and accurate performance information.

9 Links to the GWM&E System Government-wide Monitoring and Evaluation System Evaluations Evaluations Framework Government-wide Monitoring and Evaluation Framework Social, Economic and Demographic Statistics Programme Performance Information Statistics and Surveys Framework Framework for Managing Programme Performance Information

10 Applicability of Framework All entities in the national, provincial and local spheres of government

11 Role of Performance Information Enhance Planning, Budgeting and Monitoring Costing of budget proposals Reporting for accountability purposes Performance monitoring Integrate financial and non-financial data for analysis purposes - Cost benefit analysis

12 Key Performance Information Concepts The developmental results of achieving specific outcomes What we aim to change? The medium-term results for specific beneficiaries that are the consequence of achieving specific outputs What we wish to achieve? IMPACTS OUTCOMES Manage towards achieving these results The final products, or goods and services produced for delivery What we produce or deliver? The processes or actions that use a range of inputs to produce the desired outputs and ultimately outcomes What we do? The resources that contribute to the production and delivery of outputs What we use to do the work? OUTPUTS ACTIVITIES INPUTS Plan, budget, implement and monitor

13 Alignment of Concepts Strategic Planning Concepts DEPARTMENT Performance Information Budgeting Concepts (Appropriation Bill) VOTE BAS Concepts Objective Segment VOTE/FUND VISION MISSION VALUES Values that indicate what the departments regards to be important STRATEGIC GOALS Statements of specific things the department wants to achieve in pursuit of its mission Impact and Outcome Indicators AIM Usually the same as the Mission PROGRAMME PROGRAMME Objective Level 2 STRATEGIC OBJECTIVES Statements of what concrete things the department intends doing to achieve its strategic goals Input, Activity and Output Indicators PURPOSE Statement of the overall purpose of the programme, often with reference to the activities being funded SUB-PROGRAMME SUB-PROGRAMME Objective Level 3 MEASURABLE OBJECTIVES Specific input, activity and output targets for the sub-programme Input, Activity and Output Indicators SUB-PURPOSE (?) Statement of the overall purpose of the subprogramme, often with reference to the activities being funded Objective Level up to 50 RESOURCE INFORMATION Information on Inputs ECONOMIC CLASSIFICATION SCOA Economic Classifications Item segment Item Level up to 15

14 Performance targets The baseline is the current level of performance that the institution aims to improve Performance targets express a specific level of performance that the institution, programme or individual is aiming to achieve within a given time period Performance standards express the minimum acceptable level of performance, or the level of performance that is generally expected Core set of performance indicators in concurrent functions

15 Integrated performance management systems (1) Systems should be integrated within existing management processes and systems The accounting officer is responsible for ensuring that the department has: 1. Documentation addressing the following: Integration of performance information structures and systems within existing management processes and systems Definitions and technical standards of all the information collected by the institution Processes for identifying, collecting, collating, verifying and storing information Use of information in managing for results Publication of performance information. 2. Appropriate capacity to manage performance information 3. Appropriate systems to collect, collate, verify and store the information

16 Integrated performance management systems (2) 4. Consultation processes that ensure the information needs of different users are taken into consideration when specifying the range of information to be collected 5. Processes to ensure the information is appropriately used for planning, budgeting and management within the institution, including: Processes to set performance standards and targets prior to the start of each service delivery period Processes to review performance and take management action to ensure service delivery stays on track Processes to evaluate performance at the end of a service delivery period. 6. Processes to ensure that responsibility for managing performance information is included in the individual performance agreements of line managers and other officials 7. An identified set of performance indicators for reporting for oversight purposes.

17 Other matters covered in Framework A method to develop performance indicators Managing performance information responsibilities of executive authorities, accounting officers, line managers and other officials integrated performance management systems capacity to manage performance information Publishing performance information accountability reports information to facilitate oversight providing public access to government-held information information for research information on the Internet

18 Roles and responsibilities National Treasury Sections 215 and 216 of the Constitution make the National Treasury responsible to prescribe the formats for budgets, and for measures to ensure transparency and expenditure control in each sphere of government. Given these provisions, the National Treasury s role in relation to the Framework is the following: Developing formats for accountability reporting, including strategic plans, annual performance plans, in-year-reports and annual reports Developing core set of performance information in collaboration with sector departments to ensure uniform standards and data

19 Roles National Treasury (2) developing guidelines on the use of performance information in different circumstances; monitoring the implementation of the Framework by all institutions; providing training around the implementation of the Framework, and the use of performance information; providing input into the processes to select and define performance measures; use the information generated by other institutions for purposes of monitoring, evaluating and reporting on economy, efficiency, effectiveness and equity in the use of resources to deliver services

20 Roles & Responsibilities DPSA The Department of Public Service and Administration is responsible for leading the modernisation of the public service. It does this by assisting government departments to implement their management policies, systems and structural solutions, within a generally applicable framework of norms and standards. The Framework for Performance Information is a key initiative and the department will play a critical role in its implementation and in linking it to broader systemic and structural solutions in place, particularly the individual performance management system. Also important are the department s initiatives to improve service delivery through initiatives such as Batho Pele. The performance information generated by institutions will enable the DPSA to evaluate the success of these reforms

21 Roles and responsibilities - DPLG The Department of Provincial and Local Government is responsible for, among other things, monitoring the performance of provincial and local governments in relation to the fulfilment of their constitutional functions, particularly those pertaining to the delivery of basic services. The national department is aided in this function by the provincial departments of local government. To fulfil these monitoring roles these departments require municipalities to supply them with the necessary information

22 Thank You