Framework Programme Performance Information

Dr. Annatjie MooreProvincial Performance Management Directorate12 June 2008

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

Budget Reform Process

2002 2003 2

004 2005

2006 2007

Standardize Budget & Programme Formats

Draft QPR Discussion Documents Develop database

Pilot QP Reporting

Measuring Value for money

Three EEE

Facilitate standardisedStrategic and APP

Implement and refine process

Credible Non-Financial DataLeading Indicators open domain

Non-Financial Data ElementsIn Strat & APP and Annual Reports linked and standardized

PERFORMANCE BUDGETING AND REPORTING ON RESULTS

1999 – 2000 PFMA

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 5.2.1 & 5.3.3 (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.

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.

StrategicPlan

Year 1Medium

TermBudget

IndividualPerformance

Plans

Monthly/QPRReports

AnnualReports

AnnualReview

5 yearsUpdated annuallyIncludes budget informationCovers critical areas for department

Detailed focus on first year of strategic planIncludes output and service delivery information

Expenditure trends3 year forward estimatesStrategic direction explainedPrevious year outcome incorporated when deciding resource allocation

ACCOUNTABILITY CYCLE

Staff have performance contracts & individual development plansLinked to departmental key objectives and outputsIndicate individual contribution towards achieving departmental objectives

Progress against budget & implementing strategic planHighlights departmental performance (financial & non-financial) against targets

Environmental changesExpenditure outcomes and new budget allocationsStrategic direction changes

Performance against budget and

strategic planMeeting reporting

requirements -Treasury & PS

Regulations

Results Based System

InputInput

Conditions

Processes OutputOutput

Feedback

Consequences

Deliverablework output

What is needed?

Tasks andactivities

Tasks andactivities

Tasks andactivities

Tasks andactivities

Measurement:How?

Measurement:How much?

Receiving systems

Business strategy

Legislation EnvironmentBusiness practicesLabour

Leaders of Learners 2004 ©

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.

Links to the GWM&E System

Evaluations

GovernmentGovernment--wide wide Monitoring and Evaluation Monitoring and Evaluation

SystemSystem

Programme Performance Information

Social, Economic and Demographic

Statistics

Framework for ManagingProgramme Performance

Information

Government-wide Monitoring and

Evaluation Framework

EvaluationsFramework

Statistics and Surveys Framework

Applicability of Framework

All entities in the national, provincial and local spheres of

government

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

IMPACTS

OUTCOMES

OUTPUTS

INPUTS

ACTIVITIES

The developmental results of achieving specific outcomes

The medium-term results for specific beneficiaries that are the consequence of

achieving specific outputs

The final products, or goods and services produced for delivery

The processes or actions that use a range of inputs to produce the desired

outputs and ultimately outcomes

The resources that contribute to the production and delivery of

outputs

What we use to do the work?

What we do?

What we produce or deliver?

What we wish to achieve?

What we aim to change?

Plan, budget, implement and

monitor

Manage towards achieving these

results

Key Performance Information Concepts

Alignment of ConceptsStrategic

Planning ConceptsBudgeting Concepts(Appropriation Bill)

VISIONMISSIONVALUES

Values that indicate what the departments regards to be important

AIMUsually the same as the Mission

VOTEDEPARTMENT

PROGRAMME PROGRAMMESTRATEGIC OBJECTIVESStatements of what concrete things the department intends doing to achieve its

strategic goals

PURPOSEStatement of the overall purpose of the programme, often with reference to the activities being funded

SUB-PROGRAMME SUB-PROGRAMME

MEASURABLE OBJECTIVESSpecific input, activity and output targets for

the sub-programme

SUB-PURPOSE (?)Statement of the overall purpose of the sub-programme, often with reference to the activities being funded

Impact and OutcomeIndicators

Input, Activity and Output Indicators

Input, Activity and Output Indicators

Performance Information

STRATEGIC GOALSStatements of specific things the department

wants to achieve in pursuit of its mission

ECONOMIC CLASSIFICATION

SCOA Economic Classifications

Information on Inputs

VOTE/FUND

Objective Level 2

Objective Level 3

Objective Level …up to 50

Objective Segment

Item Level … up to 15

Item segment

BAS Concepts

RESOURCE INFORMATION

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

Integrated performance managementsystems (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 information3. Appropriate systems to collect, collate, verify and store the

information

4. Consultation processes that ensure the information needs of different users are taken into consideration when specifying therange of information to be collected

5. Processes to ensure the information is appropriately used forplanning, 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 foroversight purposes.

Integrated performance managementsystems (2)

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

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

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

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

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

Thank You