The department is required to develop policies that are aimed at improving the performance of municipalities and service delivery. Therefore, periodic applied research and evaluation of policies, programmes and projects is undertaken to determine the extent to which communities are benefiting from government initiatives. Effective monitoring and evaluation system needs to be strengthened in all provinces and municipalities to ensure submission of quality information that will assist in strategic planning, decision making and shape the policy direction.

Furthermore, provinces and municipalities will continue to be supported to provide quality data that indicates improvement in service delivery and policy implementation. In the 2009/10 the department embarked on a monitoring and evaluation capacity building programme for the Offices and Premier and the Provincial Departments responsible for local government. In 2010/11 financial year, a framework for monitoring, reporting and evaluation was developed and this will be rolled out to provinces and municipalities for 2011/12.