Presentation on the Planning and Monitoring Framework DPW Portfolio Committee

1. The Presidency Presentation on the Planning and Monitoring Framework DPW Portfolio Committee Date: 22 September 2014 C.T. Madale The Medium Term Strategic Framework (MTSF)

2. Introduction

3. The importance of planning • A 1977 message written by our former President Nelson Mandela to Adelaide Tambo reads in part : “Significant progress is always possible if we ourselves plan every detail and allow intervention of fate only on our own terms. Preparing a master plan and applying it are two different things.” • Following on this • In 2012 our master plan, the NDP, was approved by Cabinet. • The 53rd conference of the ANC adopted the NDP as a long term vision which should serve as a basis for partnerships across society to attain the future we want as a country • The broad acceptance of the NDP by South Africans is itself an indication of this agreement to change our narrative

4. Medium to long term planning National Development Plan (Vision for 2030)

5. How do we implement the NDP? As Madiba said “Preparing a master plan and applying it are two different things.” In response • Government prioritised the implementation of the in the next five years • The big questions is How do we get all 150+ national and provincial departments and 250+ municipalities heading in the same direction and consistently implementing the NDP and the election manifesto? • In response we say • All national and provincial departments and municipalities by law have to produce 5 year and annual plans and report on these to Parliament and their performance against these is audited by the Auditor General • We have designed the 2014-2019 MTSF to be the mechanism through which we get all of these plans aligned and pulling in the same direction • The Treasury Regulations have been changed so that all departments have to submit their draft plans to DPME – we will be checking these to ensure they incorporate all the targets from the MTSF

6. Implementation of the NDP since adoption • Parts of the NDP that did not require long lead times and additional funding are being implemented. For example: • Legislation to prevent public servants from doing business with the state was introduced in Parliament in the past year • The Employment Tax Incentive Act aimed at helping young people enter the labour market was passed by Parliament in 2013 • Proposals related to infrastructure development are at various stages of implementation. • Proposals regarding improving planning and implementation are also already being taken forward. The President recently launched Operation Phakisa, which is an innovative approach to achieving outcomes, involving detailed collaborative planning between stakeholders, including the private sector and civil society

7. NDP pilot projects • A number of pilot projects are underway to test new policies proposed in the NDP. For example: • The Mpumalanga land reform project is testing the new land reform model proposed in chapter 6 of the NDP • A partnership is underway between the Department of Education and various stakeholders focusing on improving learning outcomes under the auspices of National Education Collaboration Trust • The Partnership for Urban Innovation between the Presidency and Gauteng Government is developing better urbanisation policies • The social-dialogue initiative by the National Planning Commission is working on determining a decent standard of living, and how it will be achieved by all citizens, as proposed in the NDP

8. Government Planning, budgeting and reporting cycle

9. Planning, budgeting and reporting cycle

10. 5-year plan • Focus on programme or department • Long-term plan • Cuts across all sectors • 5-year plan • Focus on government SEQUENCE OF THE PLANNING SYSTEM Annual Performance Plans • 1- year plan • Focus on department • Detailed actions required to implement sectoral and departmental plans Implementation of programmes and policies Provincial Development Plans Municipal IDPs Active citizens

11. Strategic Plans • Focus on strategically important issues and should cover a 5-year period and aligned to broader government strategies NDP and MTSF and Sector Plans– ideally aligned to the electoral cycle • It should ideally not be changed over the 5-year period unless there are significant policy changes relating to the mandate or the service delivery environment • However, amendments can be made in two ways : (1) a new plan can be tabled in the next tabling period or (2) an annexure to the Annual Performance Plan • Strategic Plans do not replace the need for long-term planning or other more specific plans –MTSF should be used to prioritise and plan the progressive implementation of other plans • Components of the Strategic Plan • Part A: strategic overview, vision, mission, values and the strategic goals over a five-year period. • Part B: strategic objectives, resource implications and the risks • Part C: links to other plans e.g. long-term infrastructure plan, conditional grants, review of public entities, PPP’s

12. Refer to Framework for Strategic Plans and Annual Performance Plans Annual Performance Plans • Aims to link the plans, budgets and the performance of an institution • Presents programme performance indicators and targets – to achieve goals & objectives over MTEF Components • Part A: recent developments in the operational environment & link budget – for achieving strategic goals and objectives • Part B: strategic objectives, performance indicators & targets for programmes / subprogrammes. • Part C: budgets for infrastructure projects, changes to conditional grants, public entities and ppp’s Reporting • Quarterly performance reports will be expected based on the quarterly targets set in the APPs • APPs will inform Annual Reports

13. Alignment of plans-line of sight • Need to ensure that medium-term and short-term planning of government is aligned to National Development Plan (NDP) • Medium Term Strategic Framework (MTSF) is the key mechanism for achieving this alignment Clear line of sight • MTSF: 5-year plan to set the country on a positive trajectory to achieving its long-term vision

14. Planning, budgeting and reporting cycles

15. The MTSF

16. What is the MTSF and what does it do? • The MTSF is a five year implementation plan for the NDP and the commitments in the governing party’s election manifesto. It: • Provides details for implementing the second phase of the democratic transition and clarifies the meaning of the concept of radical economic transformation and how it will be achieved • Incorporates targets and actions from other key government plans such as the New Growth Path, National Infrastructure Plan and the IPAP • Emphasises improving service delivery, the performance of the public service and the efficiency and effectiveness of local government • The MTSF will be complemented by other measures to implement the NDP such as mobilising business, labour and civil society

17. How does this MTSF differ from previous ones? • This is the first time that government has formulated its MTSF in the context of a long-term plan • Enables continuity of planning • Enables long-term considerations to be taken into account • Enables building blocks to be put in place towards the 2030 Vision • The MTSF is based on the outcomes system adopted by the 2009–2014 administration and focuses on 14 priority outcomes • Provides detailed, measurable targets and timeframes for implementation of key actions, to enable monitoring of implementation, as well as targets for key performance indicators to enable monitoring of results and impacts on society • This MTSF is much more detailed than previous versions, so that it can provide the link between the NDP and departmental plans • The indicators and targets in the MTSF should be reflected in departmental strategic and annual performance plans

18. MTSF documentation • MTSF documentation on the DPME website includes: • A 36 page summary • 14 appendices containing the detailed plan for each outcome, which identify the actions needed to implement the NDP over the five years as well as measurable indicators with targets for these actions and clearly identified responsibilities and timeframes for implementation

19. The fourteen priority outcomes 2014-19 • The MTSF is structured around 14 priority outcomes which cover the focus areas identified in the NDP. These are: • Education • Health • Reducing crime • Job creation • Skills development • Economic Infrastructure • Rural development • Sustainable human settlements • Responsive, accountable and efficient local government • Safe environment • A better South Africa , Africa and the world • An efficient , effective and development oriented public service • A comprehensive and responsive and sustainable social protection system • A diverse, social cohesive society and nation identity

20. Links between the budget and the MTSF • The development of the MTSF was informed by government’s fiscal framework and fiscal boundaries • The MTSF should inform departmental budget submissions to National and Provincial Treasuries • DPME is involved in the budgeting structures of government such as and MINCOMBUD to ensure that there is alignment between budgets and the priorities in the MTSF • Given continuity in the policy agenda since the last administration, most of the programmes contained in the MTSF have already been financed by spending plans announced in the budget • The Budget Review document links our spending programmes to the critical actions identified in the NDP • The MTSF does not cover all of Government’s work, but is aimed at ensuring that the key actions required to realise the NDP Vision are implemented

21. KEY MTSF PRIORITIES FOR DPW

22. MTSF PRIORITIES FOR DPW • Outcome 12: Public Services • Sub-Outcome 4: Efficient and effective management and operations systems • Provide reasonable functional accommodation that facilitates the attainment of departments' service delivery objectives Indicators • Percentage of leased accommodation (leased in) provided within agreed time period- • Target: 70 percent (2019) • Percentage of projects (new, rehabilitation and refurbishment) completed within agreed time period • Target: 60 percent (2019) • Percentage of projects completed within approved budget • Target: 80 percent (2019)

23. MTSF PRIORITIES FOR DPW (2) • Outcome 4: Economy • Sub-Outcome 9: Public employment schemes provide relief for the unemployed and build community solidarity and agency • EPWP Phase 3 (including CWP) implemented, monitored and evaluated including the establishment of a Presidential Public Employment Commission to coordinate the rollout of Public Employment Programmes Indicator • Number of work opportunities (mostly time-bound and some part-time) created • 6 million work opportunities over 5 years with most CWP targets achieved in the outer years of the MTSF

24. Monitoring implementation of Plans

25. Three levels of Monitoring Monitoring happens at three levels: • Departmental • Executive • Parliamentary oversight What do we monitor? • Monitoring the implementation of the 14 priority outcomes linked to the NDP and MTSF • Monitoring departmental plans (Sector Plans, Strategic Plans and APP’s)

26. Monitoring implementation of the 14 priority outcomes through the MTSF and/or delivery agreements • The 2014-2019 Medium-Term Strategic Framework on the 14 priority outcomes • Performance agreements with Ministers • Implementation Forums using existing structures (clusters and Minmecs or their equivalents) for coordinating the development and implementation of the Delivery Agreements • The web-based Programme of Action reflecting MTSF and/or Delivery Agreements • Quarterly PoA monitoring reports to Cabinet (traffic lights), highlighting progress made, challenges encountered and measures to address the challenges • POA reports also form the basis for performance monitoring meetings between the President and the relevant Minister in his/her outcome coordinating or supporting role

27. Monitoring implementation of Sector Plans, Strategic Plans and APP • The purpose of the Quarterly Performance Reports is to report on overall progress made with the implementation of the department’s performance plan both on a quarterly and an annual basis. • Quarterly Performance Reporting can are enabling mechanism that allows Accounting Officers to track progress against what has been planned and what is actually achieved with regards to service delivery outputs • Treasury Regulation 5.3.1 – Quarterly Results must be tabled at the Executive Authority each quarter and submitted to NT, DPME and Parliament. • This enable these institutions to monitor progress against targets and budgets • Quarterly results leads to the annual results reflected in Annual Reports.

28. Executive monitoring of implementation • The MTSF is a strategic document for Cabinet to use to monitor the implementation of the NDP • It does not contain everything in Departmental strategic plans and APPs • Departmental strategic plans and APPs must contain relevant MTSF commitments, but will also contain other commitments and information not in the MTSF • There will be three reports per annum to Cabinet by Outcome Coordinating Ministers for the outcomes and DPME, focusing on progress against the targets in the MTSF • Progress reports will be made public through the Programme of Action website linked to the DPME website • There will be a separate monitoring process for non-government parts of the NDP

29. Performance agreements • President will shortly enter into new performance agreements with each Minister • These will contain the key indicators and targets from the MTSF relevant to each Minister • The same indicators and targets will be put into the performance agreements of DGs and senior officials • Performance assessments of Ministers and senior officials will be based on the degree to which these targets have been achieved

30. Parliamentary monitoring and oversight • Parliament has a critical role to play in monitoring the implementation of the NDP and MTSF • Portfolio Committees should: • Ensure that all legislation is in line with the NDP and MTSF • Ensure that strategic plans and APPs contain the relevant indicators and targets from the MTSF • Monitor progress by departments in implementing the actions in the MTSF, Sector plans, Strategic Plans and APPs and hold departments accountable for implementation • Parliamentary Portfolio Committees use the quarterly implementation reports on the APP and POA system and the results of monitoring and evaluation of progress to inform their oversight work • The Department of Planning, Monitoring and Evaluation produces a range of monitoring and evaluation reports that should be used by Committees to inform their monitoring and oversight work

31. Ke ya leboga Ke a leboha Ke a leboga Ngiyabonga Ndiyabulela Ngiyathokoza Ngiyabonga Inkomu Ndi khou livhuha Thank you Dankie