1. Financial Management of Parliament Bill

2. Two overarching principles:
Parliament’s status as an independent branch of government
Constitutional commitment to transparent, accountable and effective administration
Draws on processes and budgetary practices developed in National Treasury without compromising independence of Parliament

3. The Bill: Regulates the financial management of Parliament
Provides norms and standards for provincial legislatures for the regulation of their finanicial management

4. Main changes from previous draft
Provincial legislatures removed – schedule of norms and standards
Role of Executive Authority developed in accordance with governance plan
Chief financial officer removed – Accounting Officer has full power to appoint
Chapters rearranged for ease of reading

5. Governance model
Speaker and Chairperson jointly constitute the Executive Authority of Parliament
The Executive Authority
is responsible for the financial management of Parliament and
is accountable to Parliament

6. Executive Authority Among other things –
Concludes annual performance agreement with Accounting Officer
Makes regulations and issues policy
Consults ‘consultative body’ established under Rules
Represents Parliament in discussions with Minister of Finance on annual budget

7. Adminstration of the Act
Secretary to Parliament is the accounting officer
Adminsters the Act
Accounts to the Executive Authority
Annual performance agreement
Power to delegate to other parliamentary officials
Fiduciary responsiblities include acting in the best interests of Parliament

8. Main responsibilities of Accounting Officer
Must ensure -
Effective, economical and efficient use of resources
Financial records are kept
Effective systems of financial management
Systems to manage staff performance
Unauthorised expenditure avoided
Disciplinary or criminal action taken when necessary

9. Strategic Plan and Budget
Accounting officer must prepare annually
Submit to Executive Authority 6 months before beginning of financial year
Executive Authority -
Submits plan and budget to consultative body
Consults with Minister of Finance
Submits budget to National Treasury
Represents Parliament in discussions with Minster of Finance

10. Accounting officer: In-year reporting
Monthly and quarterly reports
Mid-year budget and perfomance asessment

11. Accounting officer: Annual reports
Financial statements – to Auditor General and National Treasury
Annual report including audited financial statements to Executive Authority
Executive Authority -
tables in Parliament
refers to parliamentary committee

12. PARLIAMENT Accounting officer Auditor-General Executive Authority
Financial statements – 2 months after year end
Executive Authority
Annual report
4 months after year end
Audited financial statements after 2 months
Tables in 5 days
Tables independently
if necessary
Committee
PARLIAMENT

13. Chapters on specific matters
Cash management and investment
Financial management –
Asset and liability management
Revenue management
Expenditure management
Budget implementation
Supply chain management
Reporting
Auditing

14. Audit committee Independent, advisory body
Appointed by Executive Authority
Majority of members not in Parliament
Advises Executive Authority and Accounting Officer
Draws up charter to guide internal audit committee

15. Internal audit unit Established by Accounting Officer
Is independent and has access to necessary financial informatoin
Does internal audits according to -
an annual plan approved by audit committee and
standards set by the Institute of Internal Auditors

16. Financial misconduct
Disciplinary proceedings for certain failures of Accounting Officer and other officials
Criminal proceedings for deliberate or grossly negligent breach of certain provisions including –
Expenditure or revenue management
General financial maangment provisons
Abuse of position
Unauthorised expenditure
False information to Executive Authority or Auditor-General

17. The end