1. Presentation to the JSC on Financial Management of Parliament
MID -YEAR REPORT 2017/18
Presentation to the JSC on Financial Management of Parliament

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
No particular notes for this slide.
The points can be covered as is.

3. 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. 

4. Overall Institutional Performance

5. Overall Performance: Non-financial indicators
Total Indicators
Targets Achieved
Targets Not Achieved
Annual Indicators
No APP Target 29 7 4 16
2 - These were consolidated into another indicator
29 indicators are in the 2017/2018 APP
11 indicators that are applicable during the mid-year period
16 indicators are annual
2 indicators in the APP had no targets as they were consolidated into another indicator (% population accessing info on Parliament and % population familiar with the workings of parliament were rolled into an awareness indicator)
7 of 11 indicators met target for the period
This translates to institutional performance of 68%.
4 targets were not met for the period

6. Financial Performance by Programme
Programmes
Total Spending for Q1
(R’000)
% Spend in Q1
Total Spending for Q2
% Spend in Q2
YTD spending
%YTD spending
Annual Budget
Strategic Leadership and Governance
23 054
20.84
26 173
23.66
49 227
44.49
Administration
31 059
17.54
41 962
23.70
73 021
41.24
Core Business
19.54
25.78
45.32
Support Services
67 889
18.21
90 796
24.36
42.57
Associated Services
26.36
26.22
52.59
Sub-Total
21.45
25.32
46.78
Direct Charges
19.32
19.23
38.55
TOTALS
20.97
23.93
44.89
Parliament has spent R1,091b or percent of the annual budget of R2,430b for the first half of the financial year. Spending for the second quarter against the forecast (R1,180b) is at 94 percent and indications are that Parliament will spend the full amount of the operational budget at the end of the financial year except direct charges where indications are that there will be an underspending of R105m, which will be surrendered to the National Revenue Fund (NRF) in line with section 23(4) of the Financial Management of Parliament and Provincial Legislatures Act, 2009 (FMPPLA). Details of spending patterns provided under programme performances below.

7. Financial Performance by Economic classification
Total Spending for Q1
(R’000)
% Spend in Q1
Total Spending for Q2
% Spend in Q2
YTD spending
%YTD spending
Annual Budget
Compensation of Members
19.32
19.23
214,459
38.55
Compensation of Employees
21.59
23.97
450,005
45.54
Goods and Services (APP)
36 352
12.61
84 192
29.20
120,544
41.80
Goods and Services (Members’ entitlements)
45 780
28.61
42 971
26.86
88,751
55.47
Transfers
25.58
26.13
214,444
51.71
Capital Expenditure
835
3.55
2 315
9.84
3,150
13.39
23 531
TOTALS
20.97
23.93
1,091,353
44.89
Spending for compensation of Members against the annual budget is 39 percent for the mid-year and 87 percent against projections for the same period, and indications are that there will be an underspending of R105m at the end of the financial year which will be surrendered to the National Revenue Fund (NRF) in line with section 23(4) of the Financial Management of Parliament and Provincial Legislatures Act, 2009 (FMPPLA). Spending for compensation of employees against the annual budget is 46 percent for the mid-year and 96 percent against projections for the same period and there is an actual underspending of R34m as at the end of the financial year due to resignations during the year. Spending for goods and services (APP) and capital expenditure against the annual budget is 42 and 13 percent for the mid-year and 74 and 71 percent against projections for the same period and indications are that there will be an underspending of R6m and R2m respectively at the end of the financial year. Spending for goods and services (Members’ entitlements) and transfers against the annual budget is 55 and 52 percent for the mid-year and 101 and 102 percent against projections for the same period and indications are that there will be an overspending of R23m and R19m respectively at the end of the financial year. Budget reprioritisation will be done during the Medium Term Budget Policy Statement in line with section 18 (2) (a) of the FMPPLA from areas where there are indications of underspending to areas where there are indications of possible overspending.

8. Programme Performance

9. Programme 1: Strategic Leadership and Governance
Indicators
2017/18
mid year target
Mid year actual
Variance
Status
Reason for Variance & Mitigation
Link to Expenditure
% of governance schedule implemented
2 EXCO meeting
Target met
None
% of governance documents tabled for referral (FMPPLA)
10 Governance documents to be tabled
7 governance documents tabled on time)
-30%
Weaknesses in the co-ordination processes for the consideration of governance documents impacted 1st quarter.
Procedures for tabling timeously have been developed.
Number of analysis reports presented to the Finance & Appropriations Committees in both Houses of Parliament
10 reports to be presented
13 reports submitted 3
Target exceeded
PBO budget
Total Indicators
Targets Achieved
Target Not Achieved
Annual Indicators 3 2 1

10. Programme 1: Strategic Leadership and Governance
Division
Total Spending for Q1
(R’000)
% Spend in Q1
Total Spending for Q2
% Spend in Q2
YTD spending
%YTD spending
Annual Budget
Office of the Speaker
8 985
19.25
9 913
21.24
18 898
40.49
46 676
Office of the Chairperson
8 440
21.34
9 623
24.33
18 063
45.66
39 559
Parliamentary Budget Office
3 651
22.74
4 244
26.43
7 895
49.16
16 060
Office of Institutions Supporting Democracy
1 977
23.70
2 393
28.68
4 370
52.38
8 343
TOTALS
23 054
20.84
26 173
23.66
49 228
44.49
The programme has spent R49m or 45 percent of the annual budget of R111m for the first half of the financial year and spending for the second quarter against the forecast (R54m) is at 92 percent. Spending against the annual budget is less for Offices of the Speaker and Chairpersons due to international travelling scheduled for the third and fourth respectively. The Parliamentary Budget Office has spent almost 50 percent of the annual budget and 100 percent of the projections for the second quarter. The Office of Institutions Supporting Democracy has spent 52 of the annual budget and 110 percent of the second quarter budget as at 30 September This is due to appointments during the year and budget reprioritisation will be done during the Medium Term Budget Policy Statement in line with section 18 (2) (a) of the FMPPLA from areas where there are indications of underspending to areas where there are indications of possible overspending.

11. Programme 2: Administration
Indicators
2017/18
Mid year target
Mid year actual
Variance
Status
Reasons for Variance/ Mitigation
Link to Expenditure
Number of member capacity building programmes implemented
4 programmes
10 programmes 6
Target exceeded. A greater variety of programmes offered in response to Member needs.
Legislative Sector Support budget.
% Completion rate
Annual
target
n/a
Level of implementation of Sector Plan
Legislative Sector Support budget
Efficiency Index
FMO/SMG budget
% compliance with prescripts and regulations
12 documents submitted on time
10 documents submitted on time
-17%
Weaknesses in administrative co-ordination.
Operating procedures have been strengthened.
Office of the Secretary to Parliament
Total Indicators
Targets Achieved
Targets Not Achieved
Annual Indicators 5 1 3

12. Programme 2: Administration : Progress against annual targets
Level of implementation of Sector Plan
The actual performance on Level of Implementation of the revised Sector Strategy is determined by the performance on the Percentage of Speaker’s Forum and SALSA resolutions followed up and actioned. The sector strategy was implemented as planned over the mid-year period. A key milestone achieved is the development of a Legislative Sector Bill
Efficiency Index
Measures to save costs on printing, travelling, telephones and supply chain have been implemented.

13. Programme 2 : Administration
Division
Total Spending for Q1
(R’000)
% Spend in Q1
Total Spendin g for Q2
% Spend in Q2
YTD spending
%YTD spendin g
Annual Budget
Office of the Secretary
4 836
20.78
2 888
12.41
7 724
33.19
23 273
Finance Management Office
10 319
18.96
15 038
27.63
25 357
46.40
54 419
Internal Audit
2 953
22.35
5 101
38.61
8 054
60.96
13 213
Strategic Management & Governance
3 168
12.45
5 629
22.13
8 797
34.58
25 438
Legislative Sector Support
5 202
12.95
6 590
16.40
11 792
29.35
40 182
Registrar of Members Interest
305
19.79
367
23.82
672
43.61
1 541
Project
4 276
22.51
6 349
33.42
10 625
55.92
19 000
TOTALS
31 059
17.54
41 962
23.70
73 021
41.24
The programme has spent R73m or 41 percent of the annual budget of R177m for the first half of the financial year and spending for the second quarter against the forecast (R90m) is at 81 percent. Spending against the annual budget is less for Offices of the Secretary, Finance management Office, Strategic Management & Governance, Legislative Support Sector and Registrar of Members Interest at 33, 46, 35, 29 and 44 percent respectively. This is due to projects which are scheduled for the third and fourth quarters such as assets verifications, State of the Nations Address, etc. Internal Audit and Projects have spent 61 and 56 percent of the annual budgets respectively and indications are that Internal audit will have an overspending of R2m at the end of the financial year. This is due to the payment of audit fees which was not adequately budgeted. Budget reprioritisation will be done during the Medium Term Budget Policy Statement in line with section 18 (2) (a) of the FMPPLA from areas where there are indications of underspending to areas where there are indications of possible overspending.

14. Programme 3: Core Business
Indicators
Mid year target
Mid year Actual
Variance
Status
Reasons for Variance/Mitigation
Link to expenditure
% of service provision as per Service Charter
100%
96.29%
-3.71%
Staff vacancies and co-ordination
Core Business branch
Oversight and Accountability Model implemented and refined
Annual target
n/a
6 oversight visits, 16 quarterly reports, 5 statutory appointments
Phase of development and implementation (legislative model)
HLP, 2 bills processed, 1 interim report PC of Transport
Phase of development and implementation of the co-operative government mechanism
3 major interventions. Mafube LM, Masilonyane LM, Metsimaholo LM .
Phase of Public Participation Model
6 005 people attended Parliamentary Tours, educational materials distributed. 218 participants attending workshops
% Population having access to participate in parliamentary process
PCS
% Population participating in parliamentary processes
Level of participation in multi-lateral organisation 30
IRPD
Alignment of international agreements to the NDP 18
% of international instruments monitored for domestication and implementation 0%
-100%
Method of calculation and evidence not well defined. Technical descriptor to be reviewed.

15. Programme 3 : QUARTER 2 SERVICE CHARTER
Even though the target for the service charter was not met holistically, 9 out of the 12 indicators were at a 100% performance. The performance for minutes and research reports are performing at over 90% despite capacity constraints. Interpretation is expected to increase performance when vacant positions are filled.

16. Programme 3 : Models
The Oversight and Accountability Model, Public Participation Model, Legislative Model and Co-operative Governance mechanism were implemented as a singular programme.
Whilst significant work has been done with regards to the programme actual performance reflects as not met since no specific in-year monitoring targets were stipulated.
This performance indicator will be revised in the current 2017/18 APP; it will be presented for approval by the Executive Authority and tabled in both Houses.
These will be replaced by 2 outcome indicators.

17. Programme 3 : Core Business
Division
Total Spending for Q1
(R’000)
% Spend in Q1
Total Spendin g for Q2
% Spend in Q2
YTD spending
%YTD spendin g
Annual Budget
Office of Deputy Secretary
577
19.23
3 000
National Assembly
7 458
19.37
8 766
22.77
16 224
42.13
38 506
National Council of Provinces
9 306
18.63
14 886
29.80
24 192
48.43
49 952
Core Business Support
52 596
18.72
75 939
27.03
45.75
Knowledge and Information Services
37 091
21.07
41 921
23.81
79 012
44.88
International Relations & Protocol
7 946
21.53
8 795
23.83
16 741
45.36
36 909
TOTALS
19.54
25.78
45.32

18. PROGRAMME 4: PERFORMANCE TRENDS
Performance Indicators
mid year target
Mid year actual
Variance
Status
Reasons for Variance / Mitigation
Link to budget
Client satisfaction level (% of clients satisfied with service levels)
Annual target
n/a
Support Services Budget
% of population who are aware of the business of Parliament
PCS budget
% of universal access
ICT budget
Client satisfaction level (% of clients satisfied with service levels ISSD)
ISSD budget
% increase in talent management index
HR budget

19. PROGRAMME 4: Progress against annual targets
Client Satisfaction Level
Forum (PSCF) formed to drive the execution of the engagement strategy, including the Divisional service charters. Terms of Reference for procuring services of an agency were developed in line with SCM requirements. Out on tender.
% population aware of business of parliament
The percentage of population who are aware about the business of Parliament will be measured in quarter 3 of the current financial year. The Terms of Reference for the Public Awareness and Perception Survey was reviewed.A request for quotations was issued, with six companies quoting. The evaluation committee considered the submissions and made a determination with respect to a suitable service provider to conduct the survey
% universal access
It is envisaged that the new intranet will be completed and implemented in quarter 4, which will increase the web and mobile access to parliamentary information systems. Current performance of this indicator is at 68.15%, well on its way to meeting the 70% annual target.
Client satisfaction level ISSD
Survey is currently underway
% increase in talent management index
L&MDP Competency Framework & Appointment of Service provider for coaching;
In terms of back to basics, the diagnostic analysis report was concluded and workshops in relation to an optimized operating model were concluded.
 Approval of non-financial recognition programme;

20. Programme 4 : Support Services
Division
Total Spending for Q1
(R’000)
% Spend in Q1
Total Spending for Q2
% Spend in Q2
YTD spending
%YTD spending
Annual Budget
Office of Deputy Secretary
786
22.38
1 112
31.66
1 898
54.04
3 512
Parliamentary Communications Services
11 867
18.47
14 177
22.06
26 044
40.53
64 257
Human Resources Management
10 304
17.63
13 674
23.40
23 978
41.03
58 436
Information Communications & Technology
12 577
13.33
25 386
26.91
37 963
40.23
94 354
Institutional Support Services
29 581
21.23
33 610
24.12
63 191
45.35
Members Support Services
2 774
21.55
2 837
22.03
5 611
43.58
12 875
TOTALS
67 889
18.21
90 796
24.36
42.57
Support Services has spent R158m or 43 percent of the annual budget of R373m for the first half of the financial year and spending for the second quarter against the forecast (R179m) is at 89 percent. Office of the Deputy Secretary has spent 54 and 103 percent of the annual and forecast to date respectively as at end of second quarter. This is due to increased responsibilities requiring travelling as a result of appointment as Acting Secretary to Parliament. PCS, HRM, ICT, ISS and MSS have spent 41, 41, 40, 45 and 44 percent of their annual budgets and 82, 87, 88, 92 and 96 percent of their projections to date respectively. There is actual underspending of R11m on compensation of employees (R6m) due to resignations during the year, goods and services (R3m) due to cancelled Back to Basic project and capital expenditure (R2m) at the end of the financial year. Budget reprioritisation will be done during the Medium Term Budget Policy Statement in line with section 18 (2) (a) of the FMPPLA to programmes where there are indications of possible overspending.

21. PROGRAMME 5: PERFORMANCE TRENDS
Performance Indicators
Mid year target
Mid year actual
Variance
Reasons /Mitigation
Link to budget
Phase of integrated services strategy implementation
Annual target
n/a
Handbook published by 31 October
Average number of days to reimburse Members
2.7 days
2,57 days
0.13 days
Target exceeded.
% of payments made compliant to policy (transfers to political parties)
100%
(33)

22. Programme 5 : Associated Services
Division
Total Spending for Q1
(R’000)
% Spend in Q1
Total Spending for Q2
% Spend in Q2
YTD spending
%YTD spending
Annual Budget
Members Facilities
59 683
27.87
56 552
26.41
54.28
Party Leadership Support Allowance
2 497
28.70
2 683
30.84
5 180
59.54
8 700
Party Administrative Support Allowance
27 491
28.45
27 900
28.87
55 391
57.32
96 630
Constituency Allowance
76 102
24.60
77 771
25.14
49.74
TOTALS
26.36
26.22
52.59
Associated Services has spent R331m or 53 percent of the annual budget of R629m for the first half of the financial year and spending for the second quarter against the forecast (R326m) is at 101 percent. Spending on Members’ Facilities which relates to Members’ entitlements in terms of the Members Handbook and medical aid contributions for former Members of Parliament and Provincial legislatures is at 54 and 102 percent of the annual budget projections to date respectively. Transfers to political parties represented in Parliament is R212m or 52 percent of the annual budget of R415m and 101 percent of the R212m projections for the second quarter. Indications are that there will be an overspending of R24m and R19m on members facilities and transfers to political parties respectively at the end of the financial year. The projected overspendings is due to the fact that there has always been a shortfall on the budget for Members facilities and transfers over the years, which was always funded from unspent funds of previous financial years, which has been exhausted. Budget reprioritisation will be done during the Medium Term Budget Policy Statement in line with section 18 (2) (a) of the FMPPLA from programmes where there are indications of possible overspending.

23. Direct Charges Members Remunerations 107 485 19.32 106 974 19.23
Division
Total Spending for Q1
(R’000)
% Spend in Q1
Total Spending for Q2
% Spend in Q2
YTD spending
%YTD spending
Annual Budget
Members Remunerations
19.32
19.23
214,459
38.55
TOTALS
Spending for Members’ remuneration is R214m or 39 percent of the annual budget of R556m. Against the year to date projections of R246m the spending is at 87 percent. Indications are that there will be an underspending of R105m at the end of the financial year. This is due to the fact that the budget for Members’ remunerations has been overstated since 2009/10 financial year as a result of the payment of loss of office gratuities to non-returning Members. The projected underspending at the end of the financial year which will be surrendered to National Revenue Fund (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.

24. Way Forward
The 2017/2018 mid-year report shows great progress towards the achievement of the 6 Strategic Outcome Orientated goals envisaged by thee Strategic Plan of the 5th Parliament
Of the 11 indicators that are applicable for the mid-year period, 7 met target indicating an institutional performance of 68%.
Progress on annual targets have been reported on and are tracking according to trajectory.
Indicators that have been indicating persistent performance challenges are being addressed, through the tracking on action plans for performance improvement.
Capacity constraints and budgetary pressures remain as challenges are to be addressed. Critical vacancies and are being filled and ongoing engagements with National Treasury and the Minister of Finance are progress to revise the baseline budget for Parliament.
A Strategic review session was conducted with the Presiding Officers to reprioritise deliverables of the Strategic plan, in recognition of the economic and budgetary pressures.
The 2017/2018 APP and Strategic Plan is under review.