Performance Auditing and Auditing of Performance Information

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

2. 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

3. 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�

4. 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

5. 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)

7. 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)

8. 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

10. 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

11. 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)

12. 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

13. Q&AThank you