11 July 2019 APP Presentation to the Joint Standing Committee on Financial Management of Parliament June 2019

PRESENTATION STRUCTURE Background Programme Structure Budgetary Information Programme Budget Allocations Monitoring and Evaluation  

PART A BACKGROUND

LEGAL REQUIREMENTS: FMPPLA BACKGROUND LEGAL REQUIREMENTS: FMPPLA Sections: 15 (1) At least ten months prior to the start of the financial year, the Accounting Officer must prepare a annual performance plan for Parliament and present it to the Executive Authority. 16 (1) At least ten months prior to the start of the financial year, the Accounting officer must prepare a budget for Parliament and present it to the Executive Authority. 17 (1) The Executive Authority must table in Parliament, for referral to the oversight mechanism – (b) the annual performance plan and budget, at least one month before the budget must be submitted to the National Treasury.

2019/20 APP DEVELOPMENT PROCESSES BACKGROUND CONT… 2019/20 APP DEVELOPMENT PROCESSES The Accounting Officer and senior management held a strategic planning session from 09 to 11 April 2018. The purpose of the session was to Identify possible key drivers of the 6th Parliament, as the 2019/20 financial year will most likely be the first year of the 6th term, Provide a result framework to serve as a basis for preparing the 2019/20 APP and Budget, Review immediate outcomes and indicators aligned to the policy priorities; Review programme indicators and targets for 2019/20 to 2021/22; Develop operational plans for 2019/20 to 2021/22, to implement the annual performance plan; and Develop resource and budget requirements for 2019/20 to 2021/22, aligned with requirements for the implementation of plans. The 2019/20 APP and Budget will be subject to the strategic plan of the 6th Parliament, and will therefore be revised.

PARLIAMENTARY CONTEXT OF PLANNING: GLOBAL, REGIONAL AND LOCAL CONTEXT

PARLIAMENTARY OUTCOMES Strengthened oversight and accountability Enhanced public involvement Strengthened co-operative government and inter-governmental relations Deepened engagement in international participation Improved quality and impact of legislation

PARLIAMENTARY OUTCOMES CONT…. Improved capacity-building programmes for Members Improved timeliness and quality of advisory and information services Improved use of facilities and creation of an enabling environment Improved legislative sector co-operation in order to achieve outcome goals

PART B PROGRAMME STRUCTURE

PROGRAMME STRUCTURE: ENTITIES REPORTING TO THE EXECUTIVE AUTHORITY Parliamentary Service: Secretary to Parliament, Parliamentary Budget Office: Director of the PBO, Legislative Sector Support component: Executive Director LSS, Office supporting ISDs: Executive Director OISD, Treasury Advice Office: Manager Treasury Advice

PROGRAMME STRUCTURE CONT… Programme 1: Strategic Leadership and Governance Political leadership, governance and institutional policy, communication and co-ordination, oversee development and implementation of strategic plan, annual performance plan and budget, Parliamentary Budget Office and Office: ISD. Programme 2: Administration Strategic leadership support and management, institutional policy and governance, development programmes for Members, management and administration, internal audit and financial management, and the Registrar of Members’ Interests. Programme 3: Core Business Procedural and legal advice, analysis, information and research, language, content and secretarial and legislative drafting services for meetings of the National Assembly, National Council of Provinces and their committees. Provide public education, information and access to support public participation. Provide analysis, advice and content support for parliamentary international engagement. Programme 4: Support Services Provide institutional communication services, human resource management, information communication technology, institutional support services and Members’ support services. Programme 5: Associated Services Provide travel, communication and other facilities for Members of Parliament to fulfil their duties as elected public representatives. Provide financial support to political parties represented in Parliament, their leaders and constituency offices.

BUDGETARY INFORMATION PART C BUDGETARY INFORMATION

TOTAL BUDGET Parliament’s proposed budget for 2019/20 financial year as presented by the Minister of Finance in Parliament on the 20th February 2019 is R2,521b. Requests from business units for the same period amounted to R3,003b, a shortfall of R482m before own revenue and donor funds.

REVENUE Parliament’s total expected revenue for the 2019/20 financial year is R2,609b as indicated below:

TOTAL ALLOCATIONS * Sub-total Direct Charges Programme R’000 Totals Compensation * Operations Transfers Strategic Leadership & Governance 104,267 86,567 17,700 Administration 175,584 117,615 57,969 Core Business 640,894 506,151 134,743 Support Services 440,239 337,730 102,509 Associated Services 720,236 61,646 175,000 483,730 Sub-total 2,081,360 1,109,709 487,921 Direct Charges 527,518 TOTALS 2,608,878 1,637,227 * Compensation of employees and Members

TOTAL ALLOCATIONS…CONTINUATION

TOTAL ALLOCATIONS…CONTINUATION * Compensation of employees includes 61 464 as indicated in slide 15 (PARMED)

PROGRAMME BUDGET ALLOCATIONS PART D PROGRAMME BUDGET ALLOCATIONS

ALLOCATION PER PROGRAMME…CONTINUATION Programme 1: Strategic Leadership & Governance Programme R’000 Totals Compensation of employees Operations Transfers Office of the Speaker 43,383 34,383 9,000 Office of the Chairperson 36,834 29,334 7,500 Parliamentary Budget Office 15,395 14,645 750 Office of Institutions Supporting Democracy 8,655 8,205 450 TOTALS 104,267 86,567 17,700

ALLOCATION PER PROGRAMME Programme 2: Administration Programme R’000 Totals Compensation of employees Operations Transfers Office of the Secretary 11,566 9,766 1,800 Finance Management Office 56,236 49,736 6,500 Strategic Management and Governance 30,155 29,526 629 Registrar of Members Interest 2,757 2,057 700 Internal Audit 16,237 9,407 6,830 Projects 17,920 Legislative Sector Support 40,713 17,123 23,590 TOTALS 175,584 117,615 57,969

ALLOCATION PER PROGRAMME Programme 3: Core Business Support Programme R’000 Totals Compensation of employees Operations Transfers Deputy Secretary - Core 4,116 3,816 300 Events (Youth and Women) 7,500 National Assembly 43,713 41,007 2,706 National Council of Provinces 54,313 32,976 21,337 International Relations and Protocol 42,891 24,891 18,000 Core Business Support 299,943 231,543 68,400 Knowledge and Information Services 188,418 171,918 16,500 TOTALS 640,894 506,151 134,743

ALLOCATION PER PROGRAMME Programme 4: Institutional Support Services Programme R’000 Totals Compensation of employees Operations Transfers Deputy Secretary - Support 4,573 4,073 500 Institutional Support Services 171,437 135,199 36,238 Information Communication and Technology 81,830 51,830 30,000 Human Resources 101,279 81,279 20,000 Members Support 15,690 14,919 771 Parliament Communication Services 65,430 50,430 15,000 TOTALS 440,239 337,730 102,509

ALLOCATION PER PROGRAMME Programme 5: Associated Services Programme R’000 Totals Compensation of employees Operations Transfers Members Facilities 236,646 61,646 175,000 Transfers to Political Parties 483,730 TOTALS 720,376

ALLOCATION PER PROGRAMME Programme 6: Direct Charge Programme R’000 Totals Compensation of employees Operations Transfers Members Remuneration 527,518 TOTALS

ADDITIONAL REQUESTS IN TERMS OF THE 05TH PARLIAMENT’S PRIORITIES Economic classification Amount allocated R’000 Request Shortfall Details Compensation of employees 1,109,709 1,143,697 (33,988) Filing of critical vacant positions will be impacted. Operations 312,921 562,687 (249,766) Goods and services in respect of international and local travelling, training, insurance, radio broadcast, digital archive/storage system, legal fees, etc. as detailed on the spreadsheet Members Facilities 175,000 200,000 (25,000) Members facilities in terms of the Members’ Handbook Transfers 483,730 463,312 20,418 Transfers were increased late last financial year after 2019/20 budget request submission. Direct charges 527,518 633,283 (105,765) Further budget reduction by National Treasury on direct charges TOTALS 2,608,878 3,002,979 (394,101)

CONCLUSION Requests from business units for the 2019/20 financial year amounted to R3,002,979b, resulting in a shortfall of R394,101mm Cost cutting measures and efficiency will have to be implemented.

THANK YOU