Framework for Managing Programme Performance …

1 Framework for Managing Programme Performance InformationNational TreasuryPublished by the National TreasuryPrivate Bag X115 Pretoria0001 South AfricaTel: +27 12 315 5948 Fax: +27 12 315 5126 TheFramework for Managing Programme Performance Information isalso available on : National Treasury Communications DirectoratePrinting and Binding: Formeset Printers Cape (Pty) LtdPublication date: May 2007 ISBN : 978-0-621-37152-9RP: 86/2007 Framework for Managing Programme Performance InformationAfter reviewing this Framework for Managing ProgrammePerformance Information you should understand the followingissues: The importance of Performance information as amanagement tool The link between this Framework and the Government-wide Monitoring and Evaluation System The role of Performance information in planning,budgeting and reporting Key concepts, including the criteria for goodperformance indicators An approach to developing Performance indicators The capacity required to manage and use performanceinformation The roles of key government institutions in performanceinformation management The publication of Performance information.

2 What you should TreasuryFramework for Managing Programme Performance Information1. WHY IS MEASURING Performance IMPORTANT? .. AIMS OF THE Framework .. POLICY AND LEGAL Constitution .. Public sector management The Government-wide Monitoring and Evaluation System .. APPLICABILITY OF THE Framework .. A WORD ON TERMINOLOGY ..32. PLANNING, BUDGETING AND KEY Performance INFORMATION INPUTS, ACTIVITIES, OUTPUTS, OUTCOMES AND IMPACTS .. Performance INDICATORS .. Performance TARGETS ..84. DEVELOPING Performance Managing Performance RESPONSIBILITIES .. INTEGRATED Performance INFORMATION STRUCTURES AND MANAGEMENT PUBLISHING Performance ACCOUNTABILITY REPORTS.

3 INFORMATION TO FACILITATE OVERSIGHT .. PROVIDING PUBLIC ACCESS TO GOVERNMENT-HELD INFORMATION FOR RESEARCH .. INFORMATION ON THE INTERNET ..167. ROLES AND THE PRESIDENCY AND PREMIERS' THE NATIONAL TREASURY AND PROVINCIAL TREASURIES .. NATIONAL DEPARTMENTS RESPONSIBLE FOR CONCURRENT THE DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION .. THE DEPARTMENT OF PROVINCIAL AND LOCAL GOVERNMENT AND PROVINCIAL DEPARTMENTS OF LOCAL 1: GLOSSARY ..20 CONTENTSDPLGD epartment of Provincial and Local GovernmentDPSAD epartment of Public Service and AdministrationENEE stimates of National ExpenditureMECM ember of the Executive CouncilMFMAM unicipal Finance Management ActPFMAP ublic Finance Management ActStats SAStatistics South AfricaLIST OOF AACRONYMSN ational is measuring Performance important?

4 Performance information indicates how well an institution is meeting its aims and objectives, and whichpolicies and processes are working. Making the best use of available data and knowledge is crucial forimproving the execution of government's mandate. Performance information is key to effectivemanagement, including planning, budgeting, implementation, monitoring and reporting. Performanceinformation also facilitates effective accountability, enabling legislators, members of the public and otherinterested parties to track progress, identify the scope for improvement and better understand the public sector delivers services essential to the well-being and development of the nation.

5 To ensurethat public service delivery is as efficient and economical as possible, all government institutions arerequired to formulate strategic plans, allocate resources to the implementation of those plans, and monitorand report the results. Performance information is essential to focus the attention of the public andoversight bodies on whether public institutions are delivering value for money, by comparing theirperformance against their budgets and service delivery plans, and to alert managers to areas wherecorrective action is information also plays a growing role in budget allocations and will increasingly be used tomonitor service delivery.

6 This means the information must be accurate, appropriate and timely. The most valuable reason for measuring Performance is that what gets measured gets done. If an institutionknows that its Performance is being monitored, it is more likely to perform the required tasks - and toperform them well. In addition, the availability of Performance information allows managers to pursueresults-based management approaches, such asperformance contracts, risk management,benchmarking and market testing. This document outlines key concepts in the designand implementation of management systems todefine, collect, report and use performanceinformation in the public of the FrameworkThis Framework aims to.

7 Clarify definitions and standards forperformance information in support of regularaudits of such information where appropriate Improve integrated structures, systems andprocesses 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 and legal requirementsThis section describes the policy and legal requirements aimed at improving public sector financial andperformance information management related to this 1 INTRODUCTIONF ramework for Managing Programme Performance Information1 The Power of Measuring Results If you do not measure results, you can nottell success from failure If you can not see success, you can notreward it If you can not reward success, you areprobably rewarding failure If you can not see success, you can notlearn from it If you can not recognise failure, you cannot correct it If you can demonstrate results, you canwin public supportAdapted from Osborne and Gaebler.

8 1992, Reinventing Government1 Section 20(2)(c) of the Public Audit Act (25 of 2004) requires the Auditor-General's audit reports to reflect an opinion or conclusion on the reported information relating toperformance against predetermined objectives of the auditee, which include constitutional institutions, departments, trading entities, public entities, municipalities and municipalentities, and other institutions as indicated by sections 4(1) and 4(3) of the act. National ConstitutionSection 92 of the Constitution states that "members of the Cabinet are accountable collectively andindividually to Parliament for the exercise of their powers and the Performance of their functions",and that they must "provide Parliament with full and regular reports concerning matters under theircontrol".

9 Section 133 provides for the accountability of members of the executive council (MECs)of a province to the provincial legislature. Similar arrangements are specified for municipalities inthe Municipal Structures Act (1998). Public sector management reformThe implementation of the Public Finance Management Act (PFMA) (1999), the MunicipalFinance Management Act (MFMA) (2003) and the Public Service Act (1994 as amended) hasenhanced control over public expenditure and empowered public sector managers. One challengefor the public sector is to use resources in a more efficient way. Further policy initiatives and legalrequirements have been introduced to achieve this, including the integration of performanceconcepts from the Estimates of National Expenditure(ENE) and other budget The Government-wide Monitoring and Evaluation System In 2004, the Cabinet initiated plans for a monitoring and evaluation system for government, andthe Presidency subsequently developed the Government-wide Monitoring and there are various existing systems gathering valuable information within government,there are also a number of gaps in the information needed for planning the delivery of services andfor reviewing and analysing the success of policies.

10 The Government-wide Monitoring and Evaluation System seeks to enhance these systems bydescribing them and explaining how they relate to each system has three components:- Programme Performance information -Social, economic and demographic following figure illustrates the relationship between these components. It highlights that there will beframeworks dealing with each component. The Framework for Managing Programme PerformanceInformationdeals with the management of the Programme Performance information component, althoughthe terminology and definitions outlined in it are generally applicable throughout the Government-wideMonitoring and Evaluation 1: of the FrameworkThe Framework is applicable to all entities in the national, provincial and local spheres of word on terminology The Framework outlines a set of agreed terms for Performance information for use within the publicsector.