Performance Auditing and Auditing of Performance Information

Performance Auditing and Auditing of Performance Information Audit Committee 28 March 2008

Outline • Why measure performance? • Performance Information Framework • Purpose • GWM&E system • Key concepts • Improving performance information • Progress to date (example) • Reporting and auditing of performance information • Next steps • Parliament’s role

Why measure performance • Performance information is important to: • help identify and address underperformance/lack of service delivery in government programmes • measure value-for-money (economy, effectiveness, efficiency and equity) • improve linkage between strategic planning, budgeting, implementation and reporting • facilitate developing indicators of national, provincial, local government and entities • improve accountability and oversight of legislatures • reward good performance “What gets measured gets done”

Performance Information Framework • The framework builds on previous reforms – not new • The purpose of the Framework for Managing Performance Information is to provide guidance on: • Integrated structures, systems, and processes required for performance information • Roles and responsibilities for performance information: Presidency and Premiers office, National & Provincial treasuries, Public Service and Administration, Provincial and Local Government • Promoting accountability and transparency by providing Parliament, provincial legislatures, municipal councils with timely, accessible and accurate performance information • Publishing performance information • Standardising terminology on performance information

Evaluations Census and Survey Information Programme Performance Information Components of GWM&E system • The Framework for Managing Performance Information provides guidance on Programme Performance Information which is part of the Government-wide Monitoring and Evaluation System (GWM&E)

Performance Information Framework concepts

Improving performance information • Technical Assistance Unit (TAU) training and sector support • Lessons learned from piloting in selected departments • DCS, DWAF, SAPS, DPW, DPSA • SAMDI training programmes and curriculum development (aligned to FMPPI) • Treasury guidelines and training sessions • Reporting formats for budget submissions and ENE guidelines, training and formats • Specific sector reports and expenditure reviews • Alignment with PFMA (amendments)

Progress to date • Objectives and measures in 2008 ENE • Measurable, strategic intent and intervention • Prominently featured • Performance Indicators in ENE • Trendable format (numbers only); mirrors financial reporting • Selected public entities included • Performance indicators increasingly used for evaluating new MTEF budget bids • Provincial quarterly reporting data

Reporting and auditing • FMPPI developed in consultation with Auditor General • Phasing in auditing of performance information 2009/10, to audit the integrity of systems and processes to generate performance indicators • AG may do performance audits • Regular engagement with AG on auditing concerns • Treasury’s interest in integrity and performance audit issues (4 Es) can be described as one of monitoring and evaluation, rather than auditing

Next steps • Continued improvement in programme design linked to strategic plan, budget and output delivery • Allocating resources in line with planned programme achievements increasingly • Implement non-financial reporting for departments and public entities • Based on provincial model • Expand data of trendable performance indicators • Identify most relevant performance indicators (alignment with development indicators – Presidency) • Further enhancement of measurable objectives • Developing indicators for local government (DPLG)

Parliament’s role in using performance indicators • Joint Budget Committee report on MTEF: Recommends: reports to include non-financial information and realistic key performance indicators • Accountability for results • Holding individuals accountable in terms of performance agreements • Monitoring of results to feed into recommendations in respect of MTEF allocations • Investigate failure to achieve targets • Scrutinise departments and public entities • Recommend improvements to reporting formats

Q&AThank you

Performance Auditing and Auditing of Performance Information