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PRESENTATION TO THE PORTFOLIO COMMITTEE ON AGRICULTURE, FORESTRY AND FISHERIES DEPARTMENT OF AGRICULTURE, FORESTRY AND FISHERIES STRATEGY ON COORDINATED, COLLABORATIVE AND ALIGNMENT OF ACTIVITIES/SERVICES RENDERED BY THE DIFFERENT ENTITIES DATE: 2 SEPTEMBER 2014
OUTLINE OF THE PRESENTATION Introduction Cooperative governance between DAFF and Public Entities Framework for Strategic and Annual Performance Plans Strategy on coordinated, collaborative and alignment of activities/services rendered by different Public Entities Planning process Submission of Strategic Plans to the Minister Reporting Challenges
INTRODUCTION Government delivers services to citizens through two main machineries of state—directly through government departments (at national, provincial or local spheres) and through public entities (including associated institutions and state owned entities). These public entities are either created by legislative processes and/or manage resources accumulated through statutory provisions (including levies and/or taxes). An effective and efficient utilization of resources by these state machineries, with sufficient attention given to synergy in efforts, is therefore very critical.
COOPERATIVE GOVERNANCE BETWEEN DAFF AND PUBLIC ENTITIES There are currently five Public Entities reporting to the Minister of Agriculture, Forestry and Fisheries, namely the Agricultural Research Council (ARC), the Perishable Products Export Control Board (PPECB), the National Agricultural Marketing Council (NAMC), Onderstepoort Biological Products (OBP) and Ncera Farms. Government has identified cooperative and good corporate governance as one of the key focus areas within the public sector. In order to regulate, promote cooperation and good corporate governance, the former Department of Agriculture (DoA) developed a framework for cooperative governance between the Department and the Pubic Entities and Institutions reporting to the then Minister of Agriculture and Land Affairs, which defines amongst other things, when and how the strategic plans and annual reports of the Public Entities should be submitted to the Minister. • This framework is currently under review and a draft is ready, however, most of the governing principles are still relevant.
FRAMEWORK FOR STRATEGIC PLANS AND ANNUAL PERFORMANCE PLANS The National Treasury framework is applicable to all national and provincial departments, constitutional institutions and public entities. DAFF exercises oversight of planning, budgeting and reporting processes of its Public Entities. Working with National Treasury and the Department of Planning, Monitoring and Evaluation (DPME) to ensure that the plans and budgets of the Public Entities feed into the plans and budgets of DAFF. DAFF remains accountable for the outputs of its Public Entities. The key outputs of the Public entities are contained in the DAFF’s Strategic Plans and Annual Performance Plans. DAFF has the responsibility to monitor the implementation of the Public Entities plans and budgets during the course of the financial year.
STRATEGY ON COORDINATED, COLLABORATIVE AND ALIGNMENT OF ACTIVITIES/SERVICES RENDERED BY DIFFERENT PUBLIC ENTITIES Since government delivers services to citizens through government departments and through public entities, effective and efficient utilization of resources by these state machineries, with sufficient attention given to synergy in efforts, is very critical. To promote synergy between the Department and the Public Entities, DAFF has recently developed an integrated planning framework, which defines the collaboration of activities between DAFF and other role-players, including Public Entities. The framework defines how the strategic planning process and reporting should be undertaken between DAFF and these role-players. It spells out how DAFF should take a lead in informing the Public Entities on Priority Areas since their mandates are derived from DAFF. This framework has been partially implemented this year, however, it will be fully implemented next year. These planning and reporting activities are informed by the following government planning cycle:
PLANNING PROCESS April Based on the high level government priorities, DAFF identifies and approves second level priorities informed by the MTSF and APAP. May DAFF develops indicators based on these second level priorities. DAFF informs the Provinces and Public Entities of the second level priorities and the indicators to enable them to start planning. MINTECH, a committee chaired by the Director-General and attended by the HODs of the Provinces and the CEOs of the Public Entities, discusses and approves transversal indicators. July DAFF, the Provinces and Public Entities gather at a Quarterly Planning and Reporting Meeting (QPRM) to present their 1st draft strategic plans with costed Annual Performance Plans (APPs), which were informed by the priorities and indicators. The plans are interrogated to establish the level of coordination and alignment. Once that has been confirmed the Provinces and the Public Entities have to finalize their plans.
SUBMISSION OF STRATEGIC PLANS TO THE MINISTER Each Public Entity must submit to the Director-General of the department an annual budget and a corporate plan contemplated in Chapter 6 of the Public Finance Management Act,1999 (Act No. 1 of 1999) for submission to the Minister. Corporate plans must cover a three-year period, and shall include the following: Strategic objectives and outcomes identified and agreed on; Strategic business initiatives; Key performance measures and indicators; Risk management plans; Fraud prevention strategy and plan; and Financial plan reflecting revenue and expenditure projections, as well as balance sheet management.
REPORTING The Director-General meets with the HODs and the CEOs of the Public Entities at MINTECH on a quarterly basis to discuss implementation of the plans and to prepare for MINMEC where necessary. The Director-General and Chief Executive Officers of the Public Entities agreed to meet quarterly to discuss matters of operational performance. This will be institutionalised in 2014/15. Ensuring adherence to performance with respect to government policy and programmes is the responsibility of a relevant Point of Contact (PoC) Deputy Director-General designated by the Office of the Director-General. The PoC ensures that the Department engages with the detail of the annual budget and corporate plans of the Public Entity for the purpose of preparing an advice to the Minister on the subject matter. The PoC also ensures that the Department engages with the detail of the quarterly reports of the Public Entity for the purpose of preparing an advice to the Minister on the institutions performance. The annual reports of the Public Entities are also submitted to the Director-General for scrutiny before submission to the Minister. The Minister has met with the Public Entities (CEOs).
WAY FORWARD There might be a case to be made that oversight both on governance and programme performance over Public Entities is not at the requisite level. However, as for the new reporting arrangements, this will be strengthened in 2014/15. Strengthening the strategic alignment of DAFF to its Public Entities and governance oversight has the potential of increasing DAFF`s capacity to respond to developmental challenges faced by the sector. The Director General and Chief Executive Officers agreed that shareholder compacts with the Public Entities will be drafted to prescribe the legislative/regulatory relationship between the Executive Authority and Accounting Authorities (Boards).