1. Performance in the 1st Quarter of 2017/18
April – June 2017

2. The Strategy of Parliament in Context
The 5th Parliament has adopted a Results Based Outcomes approach to Strategy
The Logical Framework of Parliament illustrates the linkages between our Inputs, Activities, Outputs, Outcomes and Impacts
The Core Business of Parliament focuses on activities, outputs and outcomes to achieve the desired external impact.
The Parliamentary Service provides Inputs – Information and Facilities
Institutional Performance Reporting aligns to this Strategic Framework

3. Parliament - logical framework Indicators
Impact
Results
(outcome)
(output)
Activities
Inputs
Deepen democracy
Improve quality of life
Build a united South Africa
Build a democratic world order
Strengthen accountability
Improve cooperative government
Plenary meetings
Committee meetings
Needs – Prep – Meeting - Records
Member capacity
Information
Facilities
(Enabling environment)
Representation (Law, Budget)
Constituency
Improve international participation
Impact of legislation
More responsive & accountable government
More involved citizenry in policy making
Increase public participation
HDI
Gini
% below
Dev. rate
Equality
Poverty
Outcomes
Involvement index
Accountability index
Extent
Participation (Subm, rep, pet)
Constitutional (rights upheld)
Parliamentary processes efficiency
MP Dev
Transfers
Claims
Outputs
Client satisfaction
Service Charter
PBO
Information value chain
(Info need, data collection, analysis, formulation, dissemination)
Facilities value chain
(Facility needs, preparing & scheduling, turn-around, maintenance)
Activities
Efficiency
Compliance
+ Human resources + Information
+ Processes and ICT systems + Equipment & facilities
+ Communication = Budget
Inputs
HR Index
ICT
Facilities

4. Strategic Outcome Orientated Goals
Parliament’s 6 Strategic Outcome Orientated Goals are:
Enhance Parliament’s oversight and accountability over the work of the Executive to ensure implementation of the objectives of the Medium Term Strategic Framework (MTSF) 2014 – 2019;
Co-operate and collaborate with other spheres of government on matters of common interest and ensure co-operative and sound intergovernmental relations;
Enhanced public involvement in the processes of Parliament to realise participatory democracy through the implementation of the public involvement model by 2019;
Enhanced parliamentary international engagement and co-operation;
Enhanced ability of Parliament to exercise its legislative power through consolidation and implementation of integrated legislative processes by 2019 in order to fulfil its constitutional responsibility;
Build a capable and productive parliament service that delivers enhanced support to Members of Parliament in order that they may efficiently fulfil their constitutional functions. 
Progress against these Outcomes are reported between pages 3-9 of the Integrated Report

5. Overall Institutional Performance

6. 1st Quarter Overall Performance: Non-financial indicators (Page 10-13)
% Completion rate of members capacity building programmes, Efficiencies, % of population having access to parliamentary processes, % population participating in parliamentary processes, Support Services client satisfaction, ISSD client satisfaction, Members handbook, Integrated Services Strategy and % population aware of the business of parliament and not applicable during the reporting period.
These are Annual indicators most of which are measured .through annual surveys. 18
Achieved
Not met

7. Budget Allocation per Programme

8. Budget Allocation by Economic Classification

9. Financial Performance: Appropriation Statement by Programme (page 14-17)
April 2017 – June 2017
Main Division
Budget(R’000)
Actuals (R’000)
Variance(R’000)
% of Budget
Strategic Leadership and Governance
26 181
23 054
3 127 88
Administration
43 315
31 059
12 256 72
Core Business
24 812 82
Support Services
86 607
67 889
18 718 78
Associated Services
(8 563)
105
Sub-Total
50 350 89
Direct Charges
31 587 77
TOTALS
81 937 86
Parliament has spent 89 and 77 percent on appropriated budget and direct charges respectively for the first quarter.
The underspending on Strategic Leadership & Governance, Administration, Core Business and Support Services is due to the fact that general salary increases for the 2017/18 financial year effective 01 April was not yet paid by the end of the first quarter, as well as delayed activities which were postponed to the second quarter as indicated under goods and services and individual main division below.
The overspending of 5 percent under Associated Services is as a result of underfunding for transfers to political parties represented in Parliament as well as medical aid contributions for former Members of Parliament and Provincial Legislatures, which were always funded from retained earnings which has been exhausted. National Treasury will be engaged to address the shortfall during the Medium Term Budget Policy Statement in line with section 18 (2) (a) of the FMPPLA.
The underspending of 23 percent on direct charges is due to the fact that the budget for direct charges has been overstated since 2009/10 financial year as a result of the payment of loss of office gratuities to non-returning Members. Indications are that there will be an underspending of R104,7 million at the end of the financial year which will be surrendered to National Revenue Fund (NRF) in terms of section 23 (4) FMPPLA.

10. Financial Performance : Appropriation Statement by Economic Classification (page 14-17)
April 2017 – June 2017
Economic Classifications
Budget (R’000)
Actuals(R’000)
Variance(R’000)
% of Budget
Compensation of Members
31 587 77
Compensation of Employees
20 806 91
Goods and Services (APP)
71 618
36 365
35 253 51
Goods and Services (Members’ entitlements)
40 001
45 779
(5 778)
106
Transfers
(2 418)
102
Capital Expenditure
3 309
822
2 487 25
TOTALS
81 937 86
The underspending of 23 percent on Compensation of Members is due to the fact that the budget for direct charges has been overstated since 2009/10 financial year as a result of the payment of loss of office gratuities to non-returning Members. Indications are that there will be an underspending of R104,7 million at the end of the financial year which will be surrendered to NRF in terms of section 23 (4) FMPPLA. For the 2015/16 and 2016/17 financial years the underspending on compensation of Members were R62,836 million and R93,310 million respectively, and were surrendered to the NRF accordingly.
The underspending of 9 percent on Compensation of employees is temporary due to the delay in the implementation of the general salary increases for the 2017/18 financial year effective 01 April which was implemented in July 2017.
The underspending of 49 percent on Goods and services which is related to the APP is as a result of payment of the 1st quarter insurance for the personal insurance which was paid in July due to the fact that the insurance broker only submitted the invoice in July, payment of the June 2017 audit fees invoice which was received and paid during July, delays in the finalisation of the procurement of tools of trade for officers in the Speaker’s Office. The underspending is temporary and indications are that Parliament will spend the full budget of goods and services by the end of the financial year.
The overspending of 6 percent on Goods and services relating to Members’ entitlements is due to the fact that the budget is not enough to cover Members’ entitlements in terms of the Members Handbook. Indications are that there will be an overspending of R million at the end of the financial year.
 The overspending of 2 percent for the quarter on Transfer payments is due to the fact that the budget for transfers to political parties represented in Parliament has been less than the transfers made over the year, and the shortfall was always funded from retained earnings which has been exhausted. Indications are that there will be an overspending of R million at the end of the financial year. National Treasury will be engaged to address the shortfall during the Medium Term Budget Policy Statement in line with section 18 (2) (a) of the FMPPLA
The underspending of 75 percent on Capital expenditure is as a result of delayed purchases and completion of capital projects (My Parliament Application, Enhanced Library promect) which will be done and completed during the second quarter. The underspending on capital expenditure is temporary and indications are that Parliament will spend the full budget by the end of the financial year.

11. Programme Performance

12. Programme 1: Strategic Leadership and Governance
(page 18)
Indicators
2017/18
1st quarter target
1st quarter
actual
Variance
Status
Reason for Variance
Link to Expenditure
% of governance schedule implemented
1 EXCO meeting
Target met
None
% of governance documents tabled for referral (FMPPLA)
5 Governance documents to be tabled
governance documents tabled on time) 1
Weaknesses in the co-ordination processes for the consideration of governance documents.
Number of analysis reports presented to the Finance & Appropriations Committees in both Houses of Parliament
4 reports to be presented
5 reports submitted
(1)
Target exceeded
PBO budget

13. Programme 1: Strategic Leadership and Governance
(page 19)
April 2017 – June 2017
Main Division of Programme
Budget (R’000)
Actuals(R’000)
Variance(R’000)
% Budget
Office of the Speaker
11 149
8 985
2 164 81
Office of the Chairperson
9 401
8 440
961 90
Joint Services
Treasury Advisory Office
Parliamentary Budget Office
3 657
3 652 5 99
Office of the Institutions Supporting Democracy
1 974
1 977 -3
100
TOTALS
26 181
23 054
3 127 88
April 2017 – June 2017
Economic Classification
Budget (R’000)
Actuals(R’000)
Variance(R’000)
% Budget
Compensation of Employees
21 176
19 539
1 637 92
Goods and Services
4 886
3 515
1 371 72
Capital Expenditure
119
TOTALS
26 181
23 054
3 127 88
The underspending of 8 percent on Compensation of employees is temporary and is due to the delay in the implementation of the general salary increases for the 2017/18 financial year effective 01 April, which was implemented in July 2017.
The underspending of 28 percent on Goods and services is as a result of delayed activities which will be done during the second quarter, as well delays in the finalisation of the procurement of tools of trade for officers in the Speaker’s Office. The underspending is temporary and indications are that the programme will spend the full budget of goods and services by the end of the financial year.
The planned spending on Capital expenditure for the quarter has been delayed to the second quarter due to delays in the finalisation of the tools of trade in the Office of the Speaker.
Strategic Leadership and Governance programme has spent 88 percent of the budget for the quarter, resulting in an underspending of R3,127 million.
The Offices of the Speaker and Chairperson have spent 81 and 90 percent of the budget respectively. The variances are temporary and is the result of the salary increases for 2017/18 not yet implemented by end of the quarter as well as delayed activities.
The Parliamentary Budget Office and Office of Institutions Supporting Democracy have spent 99 and 100 percent of the budget respectively despite the fact that the 2017/18 financial year salary increases were not yet implemented. This is due to new appointments after the budget were allocated to business units.

14. PROGRAMME 2: Administration (page 23)
Indicators
2017/18
1st Quarter Target
1st Quarter Actual
Variance
Status
Reasons for Variance
Link to Expenditure
Number of member capacity building programmes implemented
2 programmes 4
programmes
(2)
Target exceeded
Legislative Sector Support budget.
Level of implementation of Sector Plan
Final Sector Bill developed
Target achieved
Legislative Sector Support budget
% compliance with prescripts and regulations
6 documents submitted
6 documents submitted on time
Office of the Secretary to Parliament

15. Programme 2 : Administration
(page 24)
April 2017 – June 2017
Main Division
Budget (R’000)
Actuals(R’000)
Variance(R’000)
% Budget
Secretary’s Office
4 585
4 836
-251
105
Finance Management Office
13 743
10 319
3 424 75
Internal Audit
3 939
2 953
986
Strategic Management & Governance
4 778
3 168
1 610 66
Registrar of Members Interest
364
305 59 84
Legislative Sector Support
9 825
5 202
4 623 53
Projects
6 081
4 276
1 805 70
TOTALS
43 315
31 059
12 256 72
April 2017 – June 2017
Economic Classifications
Budget (R’000)
Actuals (R’000)
Variance (R’000)
% Budget
Compensation of Employees
26 420
24 234
2 186 92
Goods and Services
16 832
6 775
10 057 40
Capital Expenditure 63 50 13 79
TOTALS
43 315
31 059
12 256 72
The underspending of 8 percent on Compensation of employees is temporary and is due to the delay in the implementation of the general salary increases for the 2017/18 financial year effective 01 April, which was implemented in July 2017.
The underspending of 60 percent on Goods and services is as a result of delayed activities which will be done during the second quarter, payment of the June 2017 audit fees invoice which was received and paid during July, payment of the insurance premium for the quarter due to delay in submitting the invoice by the broker, as well as finalisation of projects. The underspending is temporary and indications are that the programme will spend the full budget of goods and services by the end of the financial year.
The 21 percent underspending on Capital expenditure is the result of capital projects which were not completed in the first quarter as planned and is temporary.
The Secretary’s Office has spent 105 percent of the budget. This is due to salaries for some employees under Strategic Management & Governance which are paid from the Secretary’s Office, and this will be corrected.
Finance Management Office, Internal Audit, Registrar of Members Interest, Legislative Sector and Projects have spent 75, 75, 84, 53 and 70 percent of their budget for the first quarter respectively. The variances are temporary and due to the delay in the implementation of the salary increases for the 2017/18 financial year as well as delayed activities which will be completed during the second quarter.
The Strategic Management & Governance has spent 66 percent of the budget due to the fact that some employees under the division are paid from the Secretary’s Office cost centre and this will be corrected.

16. Programme 3 : Core Business (page 30)
Indicators
2017/18
1st Quarter Target
1st Quarter Actual
Variance
Status
Reasons for Variance
Link to Expenditure
House Papers: % available on sitting days
118 house papers
Target achieved
NA, NCOP, CBS budget
Procedural advice: % within 7 days average
198 procedural advice
NA and NCOP budget
Legal advice: % within 7 days average
11 legal advice
CBS budget
Policy advice: % within 7 days average
9 policy advice
IRPD budget
Research: % within time allocated
310 research
KISD, CBS budget
Information requests: % within time allocated
131 requests
KISD budget
Minutes: % available within 3 days
501 minutes
497 minutes 4
Staff capacity and leave
CBS, NA, NCOP budget
% Reports within 8 days
137 reports
119 reports 18
CBS, KISD budget
% of Hansard within 5 days
66 hansard
% Interpretation available
67 interpretation
30 interpretation
(3)
Staff capacity, leave and weakness in coordination
% of translation available within agreed time
2014 translations

17. Programme 3 : Core Business (page 30)
Indicators
2016/18 1st Quarter Target
2017/18
1st Quarter Actual
Variance
Status
Reason for Variance
Link to Expenditure
Level of participation in multi-lateral organisation - international parliamentary delegation reports submitted (resolutions of multi and bilateral agreements processed timeously)
21 reports
Target achieved
IRPD budget
Alignment of international agreements to the NDP – (international agreements analysed )
8 agreements

18. Programme 3 : Core Business
(pages 31)
April 2017– June 2017
Main Division
Budget(R’000)
Actuals(R’000)
Variance(R’000)
% Budget
Deputy Secretary: Core Business
National Assembly
9 350
7 458
1 892 78
National Council of Provinces
11 802
9 306
2496 79
International Relations and Protocol
8 816
7 946
870 90
Core Business Support
67 811
52 596
15 215
Knowledge and Information Services
41 430
37 091
4 339
TOTALS
24 812 82
April 2017 – June 2017
Economic Classifications
Budget (R’000)
Actuals (R’000)
Variance(R’000)
%Budget
Compensation of Employees
96 171
11 902 89
Goods and Services
29 062
18 162
10 900 62
Capital Expenditure
2 074 64
2 010 3
TOTALS
24 812 82
The Core Business has spent 82 percent of the budget for the quarter, resulting in an underspending of R24,812 million, and the variance is temporary as indicated below.
The National Assembly, National Council of Provinces, International Relations and Protocol, Core Business Support and Knowledge and Information Services have spent 78, 79, 90, 78 and 90 percent of their budget respectively. The underspending is the result of delay in the implementation of the 2017/18 salary increases, delivery of ergonomic chairs for the Committee section, delays in receiving invoices from DIRCO for international travelling and the variances are temporary.
The underspending of 11 percent on Compensation of employees is temporary and is due to the delay in the implementation of the general salary increases for the 2017/18 financial year effective 01 April, which was implemented in July 2017.
The underspending of 38 percent on Goods and services is as a result of delayed activities which will be done during the second quarter as well as delay in submitting invoices for travelling by travel agents. The underspending is temporary and indications are that the programme will spend the full budget of goods and services by the end of the financial year.
The 97 percent underspending on Capital expenditure is mainly as the result of the delay in the delivery of ergonomic chairs for the Committee section which were only delivered in July 2017, and the variance is temporary as the payment has been made in the second quarter.

19. Programme 4 : Support Services (page 44)
Indicators
2017/178
1st Quarter Target
2017/18
1st Quarter Actual
Variance
Status
Reason for Variance
Link to Expenditure
% of universal access to web-based & mobile platforms
64%
Target achieved
IT budget
Talent management index
63%
54% 7%
The reviewed operating model and structure, employee competency levels and employee engagement are not yet measured for Quarter 1. (back-to-basics dependency)
HR budget

20. Programme 4 : Support Services
(page 45)
April 2017 – June 2017
Main Division
Budget (R’000)
Actuals(R’000)
Variance(R’000)
% Budget
Deputy Secretary: Support Services
996
786
210 79
Human Resources
14 250
10 304
3 946 72
Parliamentary Communication Services
14 767
11 867
2 900 80
Information Communication and Technology
19 092
12 577
6 515 66
Members Support
3 040
2 774
266 91
Institutional Support Services
34 462
29 581
4 881 86
TOTALS
86 607
67 889
18 718 78
April 2017 – Juneh 2017
Economic Classifications
Budget (R’000)
Actuals(R’000)
Variance(R’000)
% Budget
Compensation of Employees
64 715
59 268
5 447 92
Goods and Services
20 840
7 900
12 940 38
Capital Expenditure
1 052
721
331 68
TOTALS
86 607
67 889
18 718 78
The Support Services has spent 78 percent of the budget for the quarter, resulting in an underspending of R18,718 million, and the variance is temporary as indicated below.
The Deputy Secretary: Support Services, Human Resources, Parliamentary Communication Services, Information Communication and Technology, Members Support and Institutional Support Services have spent 79, 72, 80, 66, 91, and 86 percent of their budget respectively. The underspending is the result of delay in the implementation of the 2017/18 salary increases, delays in the finalisation of the back to basic project as well as the June 2017 cleaning services invoice paid in July 2017, and the variances are temporary.
The underspending of 8 percent on compensation of employees is temporary and is due to the delay in the implementation of the general salary increases for the 2017/18 financial year effective 01 April, which was implemented in July 2017.
The underspending of 62 percent on goods and services is as a result of delayed activities, the completion of the back to basics projects, the payment of the June 2017 cleaning invoices which will be done during the second quarter as well as delay in submitting invoices for travelling by travel agents. The underspending is temporary and indications are that the programme will spend the full budget of goods and services by the end of the financial year.
The 32 percent underspending on capital expenditure is mainly as the result of the delay payment of software licences as well as other capital expenditure, and the variance is temporary as the delayed purchases and the payment of software licences will be made in the second quarter.

21. Programme 5 : Associated Services (page 51)
Indicators
2017/18
1st Quarter Target
1st Quarter a
Actual
Variance
Status
Reasons for Variance
Link to Expenditure
Average number of days to reimburse Members 3
Target achieved
Members Support Services budget
% of payments made compliant to policy
100% (21 payments)

22. Programme 5 : Associated Services
(page 52)
April 2017 – June 2017
Main Division
Budget (R’000)
Actuals (R’000)
Variance (R’000)
% Budget
Member Facilities
53 538
59 683
111
Transfer to Political Parties
-2 418
102
TOTALS
-8 563
105
April 2017 – June 2017
Economic Classifications
Budget (R’000)
Actuals (R’000)
Variance (R’000)
%Budget
Compensation of Employees
13 537
13 904
-367
102
Goods and Services
40 001
779
-5 778
106
Transfers
-2 418
TOTALS
-8 563
105
The Associated Services has spent 105 percent of the budget for the quarter, resulting in an overspending of R8 563 million, and the variance is permanent as indicated below.
Spending on Members’ Facilities which relates to Members’ entitlements in terms of the Members Handbook is at 102 percent of the budget, resulting in an overspending of R6 145 million.
Spending on transfers to political parties represented in Parliament for the quarter is 102 percent of the budget, resulting in an overspending of R2 418 million. This is due to the fact that there always been a shortfall on the budget for transfers over the year, which was always funded from retained earnings which has been exhausted. Indications are that there will be an overspending of R million at the end of the financial year. National Treasury will be engaged to address the shortfall during the Medium Term Budget Policy Statement in line with section 18 (2) (a) of the FMPPLA
Spending on compensation of employees which relates to medical aid contributions for former Members of Parliament and Provincial Legislatures is 102 percent of the budget. Indications are that there will be an overspending of R1 467 million at the end of the financial year.
Spending on goods and services which relates to Members’ entitlements in terms of the Members Handbook is at 106 percent of the budget, resulting in an overspending of R5 778 million. Indications are that there will be an overspending of R million at the end of the financial year.
Spending on transfer payments which relates to transfers to political parties represented in Parliament for the quarter is 102 percent of the budget, resulting in an overspending of R2 418 million. Indications are that there will be an overspending of R million at the end of the financial year. This is due to the fact that there always been a shortfall on the budget for transfers over the year, which was always funded from retained earnings which has been exhausted.

23. Budgetary considerations going forward

24. Budget reductions over the MTEF
Economic classification
2016/17
R’000
2017/18
2018/19
Compensation of Members
529,798
556,288
588,553
Compensation of employees
778,816
785,503
798,683
Goods and Services
491,579
507,848
540,988
Capital expenditure
3,758
3,906
4,172
Transfer payment
385,478
414,690
438,743
TOTALS
2,189,429
2,268,235
2,371,139
Reductions
33,000
129,345
180,408
88,020
136,485
Goods and services
41,287
43,887 38 36
This 2016/17 allocation was made by National Treasury excluding Parliament’s budget requirement in terms of the Strategic Plan and the Operational Plan.

25. Impact of budget reductions
Governance & Leadership
Executive Authority.
Parliamentary Budget Office.
Treasury Advisory Office.
Office of Institutions Supporting Democracy
National Assembly
National council of Provinces
Parliamentary Committees
International Relations & Protocol
Knowledge & Information Services
Office of the Accounting Officer, Human Resources, Parliamentary Communications, Information Communications Technology, Institutional Support, Internal Audit, Finance, Risk, Members Facilities, Strategic Management & Governance, Legal Services,
Law making, Oversight, Public Participation & International Relations
R342m is the total budget reduction over the MTEF.
R221,510m: 64.77%
R100,310m: 29.33%
R20,180m: 5.9%