1. 4th Quarter Performance Report 2017/18
Presentation to the JSC on Financial Management of Parliament

2. Introduction

3. Introduction
The 2017/2018 4th quarter report shows great progress towards the achievement of the 6 Strategic Outcome Orientated goals envisaged by thee Strategic Plan of the 5th Parliament
Of a total of 19 performance indicators, only 5 have not met target. This shows a marked improvement in performance from the previous quarters and the previous financial year.
The emphasis of the 2017/2018 financial year has been on optimally allocating our resources to ensure performance improvement whilst building institutional capacity and capability for future sustainability.
We continue to operate in a fiscally constrained environment in the short to medium term and hence it is imperative for us to focus on efficiency initiatives and innovations that promote the optimal delivery of services.

4. Overall Institutional Performance

5. 4th Quarter Performance Non-financial indicator Snapshot
PERFORMANC BY STRATEGIC OBJECTIVE (SO) & INDICATOR
SO 0.1
% of governance schedule implemented
% of governance documents tabled for referral (FMPPLA)
SO 2.2
Number of analytical reports per year
SO 1.3
Number of programmes implemented
Completion rate (%)
SO 1.2
% of Speakers’ Forum and SALSA resolutions followed up and actioned
SO 1.9
% compliance with prescripts and regulations
SO 2.1
% of service provision as per Service Charter
SO 3.1
% Population having access to participate in parliamentary processes
% Population participating in parliamentary processes
SO 1.1
Client satisfaction level (% of clients satisfied with service levels)
SO 1.5
% of population who are aware of the business of Parliament
SO 1.4
% of universal access
SO 1.6
Client satisfaction level (% clients satisfied with service levels)
SO 1.7
% increase in talent management index
SO 4.1
Phase of integrated services strategy implementation
Handbook published by 31 Oct
SO 4.2
Average number of days to reimburse Members
SO 5.1
% of payments made compliant to policy

6. 4th Quarter - Non-financial indicator performance summary
Total Indicators
Targets Achieved
Targets Not Achieved 19 14 5
There are a total of 19 indicators in the revised 2017/2018 APP
14 indicators met target in the 4th quarter
5 indicators did not meet target in the 4th quarter. One indicator is related to the tabling of governance documents (slide 12). Two of these indicators relate to client satisfaction in Programme 4 which performed marginally below target (slide 31). Another indicator relating to % of Population Participating in Parliamentary processes performed below target (slide 24). The last indicator relates to the phase of integrated services strategy implementation (Member’s Services catalogue was developed and Service Feedback system specifications were developed but challenges related to commissioning and furnishing of space together with delays in procuring of the feedback system were experienced, leading to project delays)
Comparative performance per quarter is reflected under Programme performance.

7. Financial Performance: Appropriation Statement by Programme
January 2018 – March 2018
Year to date
Programme
Budget
(R’000)
Actuals
Variance
(R’000 %
Strategic Leadership and Governance
25 435
25 043
392 98
4 896 95
Administration
43 420
34 628
8 792 80
31 618 82
Core Business
12 859 91
20 586 96
Support Services
91 450
72 203
19 247 79
35 773 90
Associated Services
4 278
4 955 99
Sub-Total
45 568
97 828
Direct Charges
66 533 64
TOTALS 83 92
Appropriation budget
Parliament has spent R428,570m of its appropriated budget of R474,138m for the 4th quarter (90%). Spending to date is R1,776,831b against the budget of R1,874,659b (95%). Strategic Leadership and Governance has spent 98% of the 4th quarter budget and 95% to date. Administration has spent 80% of the 4th quarter budget and 82% of the budget year to date. Core Business has spent 91% of the 4th quarter budget and 96% of the budget to date. Support Services has spent 79% of the 4th quarter budget and 90% of the budget to date. Associated Services has spent 98% of the 4th quarter budget and 99% of the budget to date. Details of the spending patterns are provided under programme performance.
Direct Charges
The spending on direct charges is 64 percent or R119,2m of the R185,8m budget for the 4th quarter . Spending to date is 82 percent or R454,814m against the budget of R556,288m, resulting in an underspending of R101,474m which will be surrendered to NRF in terms of section 23 (4) FMPPLA.

8. Financial Performance: Appropriation Statement by Economic Classification
January 2018 – March 2018
Year to date
Main Division
Budget
(R’000)
Actuals
Variance
(R’000 %
Compensation of Members
185,761
119,228
66,533 64 82
Compensation of Employees
210,769
18 454 92
25 244 97
Goods and Services (APP)
67 600
62,981
4 619 93
47 719 84
Goods and Services (Members’ entitlements)
50 011
44 861
5 150 90
6 017
Transfers
108,688
108,489
199
100
163
Capital Expenditure
18,616
1 470
17 146 8
26 633
7 948
18 685 30
TOTALS
659,899
547,798
112,101 83
Compensation of Members
Spending on compensation of Members is 64 percent or R119,2m for the 4th quarter budget of R185,8m and 82 percent or R454,8m against the annual budget of R556,3m, resulting in an underspending of R101,474 million 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 R62,8m and R93,3m respectively. Parliament has engaged National Treasury with a view of re-directing the excess direct charges to areas where there are budget pressures, and for the 2018/19 financial year direct charges has been reduced by R95,3m and the money shifted to compensation of employees. .

9. Appropriation Statement by Economic Classification… continuation
Compensation of employees
The spending on compensation of employees is R210,769m of the 4th quarter budget of R229,223m (92%) and R903,923m of the annual budget of R929,167m (97%), resulting in a variance of R25,244m. This is due to resignations during the year, savings of R2m on group life insurance contributions as well as the 2017/18 performance bonus provision at 2% of the compensation of employees budget which will be done during the preparations of the annual financial statements.
Goods and services (APP)
The spending on goods and services relating to the APP is R62,981m of the 4th quarter budget of R67,600m (90%) and R254,547m of the annual budget of R302,266m (84%), resulting in a variance of R47,719m. The variance is as a result of the postponement of Sector projects within the Legislative Sector Support Section, as well as the ISS and HR as discussed under Programmes, invoices for goods and services delivered and rendered respectively but not received and paid as at 31 March All invoices for services rendered by the 31 March 2018 but not paid will be accrued for in terms of the Standards of Generally Recognised Accounting Practice (GRAP).
Goods and services (Members’ entitlements)
The spending on goods and services relating to Members’ entitlements is R44,861m of the 4th quarter budget of R50,011m (90%) and R176,620m of the annual budget of R182,637m (97%), resulting in a variance of R6,017m. The underspending is due to Members' entitlements for March 2018 which had not yet been claimed and processed as well as entitlements not utilised. Entitlements not yet claimed by end of the financial year will be accrued for in terms of the Standards of Generally Recognised Accounting Practice (GRAP).
Transfer payments
Payments of transfers for the 4th quarter is at 100 percent or R108,489m of the 4th quarter budget of R108,688m and 100 percent or R433,793m of the R433,956m annual budget.
Capital expenditure
The spending on capital expenditure is 8% or R1,470m of the 4th quarter budget of R18,616m. Spending to date on capital expenditure is at 30% or R7,948m of the R26,633m annual budget, resulting in an underspending of R18,685m. The underspending is due to delays in the replacement of Parliament’s fleets and the payment of computer equipment which was received late in March 2018 and not paid. Invoices for computer equipment received and not paid will be accrued for in terms of the Standards of Generally Recognised Accounting Practice (GRAP).

10. Programme Performance

11. Programme 1: Strategic Leadership and Governance
1 Indicators
Programme 1 has performed consistently throughout the 4 quarters of the year, with 2 out of 3 indicators meeting target.

12. Programme 1: Strategic Leadership and Governance
Indicators
2017/18
4th quarter target
4th quarter actual
Variance
Status
Reason for Variance & Mitigation
Link to Expenditure
% of governance schedule implemented
100%
(1 meeting scheduled)
(1 meeting held)
Target met
None
% of governance documents tabled for referral (FMPPLA)
100 %
(4 documents tabled on time)
25%
(1 documents tabled on time)
-75%
(3 documents)
December, January and February financial statements were not tabled timeously.
Procedures for the co-ordination of tabling will be improved.
Number of analysis reports presented to the Finance & Appropriations Committees in both Houses of Parliament
6 reports to be presented
17 reports submitted 11
The PBO performed above target in the 4th quarter driven by an increase in demand for PBO services.
PBO budget
Total Indicators
Targets Achieved
Target Not Achieved 3 2 1

13. Programme 1: Strategic Leadership and Governance
As indicated in the graph above, the PBO has consistently performed above target throughout the year.

14. Programme 1: Strategic Leadership and Governance
January 2018 – March 2018
Year to date
Main Division of Programme
Budget
(R’000)
Actuals
Variance %
Office of the Speaker
10 114
10 802
(688)
107
42 529
40 622
1 907 96
Office of the Chairperson
7 962
8 296
(334)
104
37 567
35 255
2 312 94
Joint Services
Parliamentary Budget Office
4 123
3 799
324 92
16 060
15 462
598
Office of the Institutions Supporting Democracy
3 236
2 146
1 090 66
9 178
9 099 79 99
TOTALS
25 435
25 043
392 98
4 896 95
Economic Classification
Budget
(R’000)
Actuals
Variance %
Compensation of Employees
21 766
20 070
1 696 92
84 266
83 678
588 99
Goods and Services
3 669
4 973
(1 304)
136
20 309
16 001
4 308 79
Capital Expenditure
759
100
TOTALS
25 435
25 043
392 98
4 896 95
Overall spending
Strategic Leadership and Governance programme has spent R25,043m of the budget of R25,435m for the 4th quarter (98%) and R100,438m of the R105,334m annual budget (95%). .

15. Programme 1: Strategic Leadership and Governance… continuation
Spending per division
The Office of the Speaker has spent R10,802m of the R10,114m budget for the 4th quarter (107%) and R40,622m of the R42,529m annual budget (96%). The 7 % overspending for the 4th quarter is due to payments of invoices for services rendered and budgeted for during the 3rd quarter but paid during the 4th quarter. The variance of R1,907m is as a result of to invoices for international trips not yet received and paid as well as a favourable exchange rate. Invoices for services rendered will be accrued for in terms of GRAP and the unspent funds will be available for spending in 2018/2019 financial year in terms of section 16(2)(b) of the FMPPLA.
The Office of the Chairperson has spent R8,296m of the R7,962m budget(104%) for the 4th quarter and or R35,255m of the R37,567m annual budget (94%), resulting in a variance of R2,312m or 6 percent. The 4 percent overspending for the 4th quarter is due to payments of invoices for services rendered and budgeted for during the 3rd quarter but paid during the 4th quarter. The R2,312m variance to date is as a result of invoices for international trips not yet received and paid as well as the strength of the exchange rate.
The Parliamentary Budget Office has spent R3,799m of the budget the R4,123m (92%) in the 4th quarter and R15,462m of the R16,060m annual budget (96%) , resulting in an underspending of R0,598m or 4 percent. The variance is as a result of the planned international conference which was cancelled.
The Office of Institutions Supporting Democracy have has spent R2,146m of the R3,236m 4th quarter budget (66%) and R9,099m of the R9,178m annual budget (99%). The underspending of R1,090m or 34 percent for the 4th quarter is due to virement made to cover the anticipated overspending as indicated during the 3rd quarter.

16. Programme 1: Strategic Leadership and Governance… continuation
Economic classifications
Compensation of employees
The spending on compensation is R20,070m of the 4th quarter budget of R21,766m (92%) and R83,588m of the R84,266m annual budget (99%).
Goods and services (APP)
The spending on goods and services is R4,973m of the 4th quarter budget of R3,699m (136%) and R16,001m of the R20,309m annual to date budget (79%).The R1,304m overspending on goods and services for the 4th quarter is due to payments of invoices for services rendered and budgeted for during the 3rd quarter but paid during the 4th quarter. The R4,308m underspending is as a result of to invoices for international trips not yet received and paid as well as the strength of the exchange rate.
Capital expenditure
There was no budget and spending on capital expenditure for the 4th quarter and 100 percent of the R759k annual budget has been spent to date.

17. Programme 2: Administration
Programme 2 has sustained a high level of performance from quarter 3 to quarter 4. In quarter 4, all four indicators met target.

18. Programme 2: Administration
Indicators
2017/18
4th quarter target
4th quarter actual
Variance
Status
Reasons for Variance/ Mitigation
Link to Expenditure
Number of member capacity building programmes implemented 2
( programmes) 5
(programmes) 3
Target exceeded. A greater variety of programmes offered in response to Member needs.
Legislative Sector Support budget.
% Completion rate
15%
Annual
target
40%
n/a
Target exceeded
% of Speakers Forum and SALSA resolutions followed up and actioned
100%
(1)
(1 )
Draft sector bill finalised and to be tabled as Section 76 bill
Legislative Sector Support budget
% compliance with prescripts and regulations
(4 timely submission)
All governance documents were submitted timeously.
Office of the Secretary to Parliament
Total Indicators
Targets Achieved
Targets Not Achieved 4

19. Programme 2: Administration
% Compliance with Prescripts and regulations has maintained 100% performance from quarter 3 to quarter 4. The 3rd quarter report and Financial statements for December, January and February were all submitted timeously.

20. Programme 2 : Administration
January 2018 – March 2018
Year to date
Main Division of Programme
Budget
(R’000)
Actuals
Variance %
Secretary’s Office
7 956
4 195
3 761 53
19 892
14 856
5 033 75
Finance Management Office
8 850
10 474
(1 624)
118
51 088
47 893
3 195 94
Internal Audit
1 756
1 863
(107)
106
14 605
10 884
3 721
Strategic Management & Governance
2 258
4 288
(2 030)
190
17 996
17 812
184 99
Registrar of Members Interest
385
335 50 87
1 453
1 431 22 98
Legislative Sector Support
9 414
7 756
1 658 82
40 182
27 489
12 693 68
Projects
12 801
5 717
7 084 45
30 418
23 648
6 770 78
TOTALS
43 420
34 628
8 792 80
31 618
Economic Classification
Budget
(R’000)
Actuals
Variance %
Compensation of Employees
31 277
23 279
7 998 74
98 930
6 967 93
Goods and Services
11 343
10 968
375 97
67 045
42 391
24 654 63
Capital Expenditure
800
381
419 48
2 692
2 695
(3)
100
TOTALS
43 420
34 628
8 792 80
31 618 82
Overall spending
Administration programme has spent R34,628m of the budget of R43,420m for the 4th quarter(80%) and R144,016m of the R175,634m annual budget (82%).

21. Programme 2 : Administration…continuation
Spending per division
The Secretary’s Office spent R4,195m of the R7,956m budget for the 4th quarter (53%) and R14,856m of the R19,862m annual budget (75%). The low spending is due to planned activities put on hold. The unspent funds will be available in the 2018/2019 financial year in terms of section 16(2)(b) of the FMPPLA.
The Finance Management Office spent R10,474m of the R8,850m budget for the 4th quarter (118%) and R47,893m of the R51,088m annual budget (94%). The R1,624m overspending for the 4th quarter is as a result of payments of invoices for services/goods rendered/delivered and budgeted for during the 3rd quarter but paid during the 4th quarter. The R3,195m underspending to date is as a result of resignations during the year as well as the investigations on use of funds which did not happen for the financial year.
Internal Audit has spent R1,863m of the R1,756m budget for the 4th quarter (107%) and R10,884m of the R14,605m annual budget (75%), resulting in an underspending of R3,721m. The R107k overspending in 4th quarter is as a result of payments of invoices for services/goods rendered/delivered and budgeted for in the 3rd quarter but paid during the 4th quarter. The R3,721m variance for the financial year is due to delays in the procurement of Audit software, delays in the finalisation of the competency framework and the Internal Audit maturity assessment and resignations during the year.
Strategic Management & Governance spent R4,288m of the R2,258m budget for the 4th quarter (190%) and R17,812m of the R17,996m annual budget (99%). The high spending for the quarter is due to payments of invoices for services/goods rendered/delivered and budgeted for during the 3rd quarter but paid during the 4th quarter.
The Registrar of Members Interest has spent R335k of the R385k budget for the 4th quarter (87%) and R1,431m of the R1,453m annual budget (98%).
Legislative Sector Support has spent R7,756m of the R9,414m (82%) budget for the 4th quarter and R27,489m of the R40,182m annual budget(68%), resulting in an underspending of R1,658m and R12,693m for the 4th quarter and to date respectively. The low spending is as a result of cancelled sector programmes and payment of study fees for Members of Parliament which was done in April The unspent donor funds will be available for the 2018/2019 financial year in terms of section 16(2)(b) of the FMPPLA.

22. Programme 2 : Administration…continuation
Spending for Projects is R5,717m of the R12,801m budget for the 4th quarter(45%) and R23,648m of the R30,418m annual budget (78%), resulting in an underspending of R7,084m and R6,770m for the 4th quarter and to date respectively. The low spending is due to invoices for services/goods rendered/delivered end of March 2018 not yet received and savings of about R2m on SONA. All invoices for services rendered by the 31 March 2018 but not paid will be accrued for in terms of the Standards of Generally Recognised Accounting Practice (GRAP), and the unspent funds will be available in the 2018/2019 financial year in terms of section 16(2)(b) of the FMPPLA.
Economic classification
Compensation of employees
The spending on compensation is R23,279m of the 4th quarter budget of R31,277m (74%) and R98,930m of the R105,897m annual budget (93%), resulting in an underspending of R7,998m and R6,967m for the 4th quarter and to date. The variance is as is as a result of terminations during the year and performance bonus provisions at 2% of the compensation of employees budget which will be done during the preparations of the annual financial statements. The unspent funds as is as a result of resignations and delays in appointments will be available for the next financial year in terms of section 16(2)(b) of the FMPPLA.
Goods and services (APP)
The spending on goods and services is R10,968m of the 4th quarter budget of R11,343m (97%) and R42,391m of the R67,045m annual budget (63%). There is an underspending of R24,654m at the end of the financial year due to the postponement of Sector and Institutional projects, delays in the procurement of a system to automate travel warrants as well as the audit software, invoices for services rendered in March 2018 but not yet paid as well as savings on SONA as indicated above. All invoices for services rendered by the 31 March 2018 but not paid will be accrued for in terms of the Standards of Generally Recognised Accounting Practice (GRAP). The unspent funds will be available for spent next financial year in terms of section 16(2)(b) of the FMPPLA.
Capital expenditure
The spending on capital expenditure is R381k of the 4th quarter budget of R800k(48%) and R2,695m of the R2,692m annual budget (100%).

23. Programme 3 : Core Business
Core Business showed improved performance from quarter 3 to quarter 4. This programme has 3 performance indicators, 2 which met performance in the 4th quarter and 1 which did not meet target.

24. Programme 3: Core Business
Indicators
4th quarter target
4th quarter actual
Variance
Status
Reasons for Variance/Mitigation
Link to expenditure
% of service provision as per Service Charter
95%
97.71%
2.71%
Target was exceeded by 2.71% mainly as is as a result of improvements in performance of translation and interpretation services.
Core Business branch
% Population having access to participate in parliamentary process
10%
Annual target
n/a
% Population participating in parliamentary processes 6%
-4%
Implementation of the Public participation model and the roll-out of the Public education curriculum will increase performance.
Total Indicators
Targets Achieved
Targets Not Achieved
Annual Indicators 3 2 1

25. Programme 3: Core Business
The overall average performance for timeliness indicators is improving over time as can be seen from the graph above, and the service charter indicator has met its target of 95% timeliness in the 4th quarter.

26. Core Business Service Charter
Quarter /18
Quarter /18
Quarter /18
Quarter 4
2017/18
Target
House Papers
100%
Procedural advice
99,4%
Legal Advice
Policy Advice
10% 0%
Research
99%
99,7%
95%
Information Requests
94%
Minutes
94,8%
92,4%
97,63%
90%
Reports
80%
96%
89,13%
Hansard
Interpretation
45%
93%
50%
85%
Translations
98,76%
87%
98,41%
Documentation
n/a
OLOGB
OVERALL TIMELINESS
84,16%
90,19%
94,55%
97,71
The above table shows the performance of the sub indicators of the Core Service Business Charter over the 4 quarters of 2017/2018.

27. Programme 3 : Core Business
January 2018 – March 2018
Year to date
Main Division of Programme
Budget
(R’000)
Actuals
Variance %
Deputy Secretary: Core Business
1,500
1,767
(267)
118
National Assembly
9 445
8 361
1 084 89
35 147
33 446
1 701 95
National Council of Provinces
7 170
10 532
(3 362)
147
47 688
44 494
3 194 93
International Relations and Protocol
17 104
15 929
1 175
46 989
45 872
1 117 98
Core Business Support
73 354
58 176
15 178 79
12 189 96
Knowledge and Information Services
33 584
34 800
(1 216)
104
2 652
TOTALS
12 859 91
20 586
Economic Classification
Budget
(R’000)
Actuals
Variance %
Compensation of Employees
95 415
95 689
(274)
100
10 624 97
Goods and Services
43 957
31 161
12 796 71
8 864 94
Capital Expenditure
1 285
948
337 74
3 588
2 490
1 098 69
TOTALS
12 859 91
20 586 96
Overall spending
The Core Business has spent R127,798m of the budget of R140,657m for the 4th quarter (91%) and R543,390m of the R563,976m annual budget (96%).

28. Programme 3 : Core Business …continuation
Spending per division
There is no spending within the Deputy Secretary: Core for the 4th quarter and 118 percent or R1,767m was spent against the annual budget of R1,500m to date, resulting in an overspending of R267k. The expenditure relates to the Women’s conference and more delegates turned up which resulted in additional catering and accommodation costs than anticipated.
The National Assembly has spent R8,361m of the R9,445m budget for the 4th quarter (89%) and R33,446m of the R35,147m annual budget (95%). The variance is due to printing invoices received but not paid as at 31 March All invoices for services rendered by the 31 March 2018 but not paid will be accrued for in terms of the Standards of Generally Recognised Accounting Practice (GRAP). The unspent funds will be available for spent next financial year in terms of section 16(2)(b) of the FMPPLA.
The National Council of Provinces has spent R10,532m of the R7,170m budget for the 4th quarter (147%) and R44,494m of the R47,688m annual budget (93%). The R3,362m overspending for the 4th quarter is as a result of payments of invoices for services/goods rendered/delivered and budgeted for during the 3rd quarter but paid during the 4th quarter. The R3,194m underspending to date is as a result of outstanding invoices for the Taking Parliament to the People in the Eastern Cape late in March 2018 which were not received and paid by end of the financial year.
International Relations and Protocol has spent R15,929m of the R17,104m budget for the 4th quarter (93%) and R45,872m of the R46,989m annual budget (98%).
Core Business Support has spent R58,176m of the R73,354m budget for the 4th quarter (79%) and R262,748m of the R274,937m annual budget (96%), resulting in underspending of R15,178m and R12,189m for the 4th quarter and year to date respectively. The low spend is as a result of invoices for services rendered in March 2018 but not received and paid, resignations and delays in filing vacant critical positions as well as outstanding legal fees invoices.
The Knowledge and Information Services has spent R34,800m of the R33,584m for the 4th quarter (104%) and R155,063m of the R157,715m annual budget (98%). The R1,216m overspending for the 4th quarter is as a result of payments of invoices for services/goods rendered/delivered and budgeted for during the 3rd quarter but paid during the 4th quarter.

29. Programme 3 : Core Business …continuation
Economic classification
Compensation of employees
The spending on compensation is R95,689m of the R95,415m budget for the 4th quarter (100%) and R412,570m of the R423,194m annual budget (97%). The variance of R10,624m to date is as a result of terminations during the year and performance bonus provisions at 2% of the compensation of employees budget which will be done during the preparations of the annual financial statements. The performance bonus provision will be calculated and done during the preparation of the annual financial statements and the rest will form part of unspent funds and available for allocations during the 2018/2019 financial year in terms of section 16 (2) of the FMPPLA.
Goods and services (APP)
The spending on goods and services is R31,161m of the 4th quarter budget of R43,957m (71%) and R128,330m of the R137,194m annual budget (94%). The underspending is as a result of outstanding invoices for the Taking Parliament to the People in the Eastern Cape late in March 2018 which were not received and paid by end of the financial year, outstanding legal fees invoices which has not yet been received and paid. All invoices for services rendered by the 31 March 2018 but not paid will be accrued for in terms of the Standards of Generally Recognised Accounting Practice (GRAP). The unspent funds will be available for spent next financial year in terms of section 16(2)(b) of the FMPPLA.
Capital expenditure
The spending capital expenditure is R948k of the 4th quarter budget of R1,285m (74%) and R2,490m of the R3,588m annual budget (69%). The variance is due to outstanding furniture and computer equipment invoices which have not yet been received and paid. The invoices will be accrued for in terms of GRAP.

30. Programme 4 : Support Services
Targets Met
Targets Not Met
Total Indicators
Number 3 2 5
Percentage
60%
40%
100%
Programme 4 has 5 indicators which are all Annual.
Preliminary results indicate that 3 indicators have met target.
The 2 indicators on client satisfaction marginally missed target.
One of the client satisfaction surveys was conducted by the Human Science Research Council.
The other client satisfaction survey relates to household services. The performance was 0.3% below target.

31. Programme 4 : Support Services
Performance Indicators
4th quarter target
4th quarter actual
Variance
Status
Reasons for Variance / Mitigation
Link to budget
Client satisfaction level (% of clients satisfied with service levels)
73.5%
Annual target
70%
-3.5%
Marginally missed target.
Support Services Budget
% of population who are aware of the business of Parliament
11.75%
24%
12.25%
Target exceeded.
PCS budget
% of universal access
72% 2%
The 4th quarter performance exceeded the annual target.
ICT budget
Client satisfaction level (% of clients satisfied with service levels ISSD)
69.7%
-0.3%
ISSD budget
% increase in talent management index 5% 9% 4%
HR budget

32. Programme 4 : Support Services
January 2018 – March 2018
Year to date
Main Division of Programme
Budget
(R’000)
Actuals
Variance %
Deputy Secretary: Support Services
409
598
(189)
146
3 350
3 317 33 99
Human Resources
16 501
17 080
(579)
104
59 280
57 011
2 269 96
Parliamentary Communication Services
17 675
14 434
3 241 82
65 006
55 562
9 444 85
Information Communication and Technology
20 892
12 405
8 487 59
82 186
72 105
10 081 88
Members Support
3 098
827
2 271 27
12 177
9 475
2 702 78
Institutional Support Services
32 875
26 859
6 016
11 244 92
TOTALS
91 450
72 203
19 247 79
35 773 90
Economic Classification
Budget
(R’000)
Actuals
Variance %
Compensation of Employees
66 656
56 210
10 446 84
8 291 97
Goods and Services
8 263
15 852
(7 589)
192
77 718
67 826
9 892 87
Capital Expenditure
16 531
141
16 390 1
19 560
1 970
17 590 10
TOTALS
91 450
72 203
19 247 79
35 773 90
Overall spending
The Support Services has spent R72,203m of the budget of R91,450m (79%) for the 4th quarter and R321,815m of the R357,588m annual budget (90%).

33. Programme 4 : Support Services…continuation
Spending per division
The Deputy Secretary: Support Services has spent R598k of the budget of R409k for the 4th quarter (146%) and R321,815m of the R357,588m annual budget (99%). The overspending of R189k during the 4th quarter is due to the payment of invoices for services rendered during December 2017 which were made in January 2018.
Human Resources has spent R17,080m of the R16,501m budget for the 4th quarter (104%) and R57,011m of the R59,280m annual budget (96%). The 4% overspending for the 4th quarter is due to payments of invoices for services rendered and budgeted for during the 3rd quarter but paid during the 4th quarter.
Parliamentary Communication Services has spent R14,434m of the R17,675m budget for the 4th quarter (82%) and R55,562m of the R65,006m annual budget (85%), resulting in an underspending of R3,241m and R9,444m for the 4th quarter and to date respectively. The variance is as a result of negotiating low rates with service providers which resulted in savings and resignations during the year.
Information Communication and Technology has spent R12,405m of the R20,892m budget for the 4th quarter (59%) and R72,105m of the R82,186m annual budget (88%), resulting in an underspending of R8,487m and R10,081m for the 4th quarter and to date respectively. The underspending is as a result of computer equipment purchased and delivered in March 2018 and invoices not received and paid, as well as delays in appointments and resignations. All invoices for computer equipment received by the 31 March 2018 but not paid will be accrued for in terms of the Standards of Generally Recognised Accounting Practice (GRAP).
Members Supports Services has spent R827k of the R3,098m budget for the 4th quarter (27%) and R9,475m of the R12,177m annual budget (78%). The underspending is due to delays in the filing of vacant positions.
Institutional Support Services have spent R26,859m of the R32,875m budget for the 4th quarter (82%) and R124,345m of the R135,589m annual budget (92%), resulting in an underspending of R6,016m and R11,244m for the 4th quarter and to date respectively. The underspending is as is as a result of the delay in implementation of the socio economic survey, delay in the replacement of Parliament’s fleets as well as resignations and during the year.

34. Programme 4 : Support Services…continuation
Economic classification
Compensation of employees
The spending on compensation is R56,210m of the R66,656m budget for the 4th quarter (84%) and R252,019m of the R260,310m annual budget, resulting in an underspending of R10,446m and R8,291m for the 4th quarter and to date respectively. The variance is as a result of terminations during the financial year as well as performance bonus provisions at 2% of the compensation of employees budget which will be done during the preparations of the annual financial statements. The performance bonus provision will be calculated and done during the preparation of the annual financial statements and the rest will form part of unspent funds and available for allocations during the 2018/2019 financial year in terms of section 16 (2) of the FMPPLA.
Goods and services (APP)
The spending on goods and services is R15,852m of the R8,263m budget for the 4th quarter (192%) and R67,826m of the R77,718m annual budget (87%). The R7,589m overspending for the 4th quarter is as a result of payments of invoices for services/goods rendered/delivered and budgeted for during the 3rd quarter but paid during the 4th quarter. The R9,892m underspending to date is the result delay in implementation of the socio economic impact study, implementation of performance management system and the Management Development Programme, delays in receiving March invoices relating to local travel, advertisements, research and photographic services and the cancellation of the back to basics. All invoices for services rendered by the 31 March 2018 but not paid will be accrued for in terms of the Standards of Generally Recognised Accounting Practice (GRAP).
Capital expenditure
The spending on capital expenditure is R141k of the R16,531m budget for the 4th quarter (1%) and R1,970m of the R19,560m annual budget (10%), resulting in an underspending of R16,390m and R17,590m for the 4th quarter and to date respectively. The underspending is as is as a result of the delay in replacement of Parliament’s fleets as well as the payment of computer equipment which were received late in March 2018 and not paid. Invoices for computer equipment received and not paid will be accrued for in for in terms of the Standards of Generally Recognised Accounting Practice (GRAP).

35. Programme 5 : Associated Services
Programme 5 has 4 indicators, 3 which met target. 1 target was not met (phase of integrated services implementation).

36. Programme 5 : Associated Services
Performance Indicators
4th quarter target
4th quarter actual
Variance
Reasons /Mitigation
Status
Phase of integrated services strategy implementation
Annual target
n/a
Member’s services charter and catalogue developed. Service feedback system requirements were specified. Challenges were experienced with the furnishing and commissioning of space and securing a system.
Handbook published by 31 October
Handbook Published in 3rd quarter
Average number of days to reimburse Members
2.7 days
1.94 days
+0.76 days
Target exceeded.
% of payments made compliant to policy (transfers to political parties)
100%
(13)
Total Indicators
Targets Achieved
Targets Not Achieved 4 3 1

37. Programme 5 : Associated Services
January 2018 – March 2018
Year to date
Main Division of Programme
Budget
(R’000)
Actuals
Variance %
Member Facilities
64 488
60 409
4 079 94
4 792 98
Transfer to Political Parties
199
100
163
TOTALS
4 278
4 955 99
Economic Classification
Budget
(R’000)
Actuals
Variance %
Compensation of Members
14 109
15 521
(1 412)
110
55 500
56 726
(1 226)
102
Goods and services (Members’ entitlements)
50 379
44 888
5 491 89
6 018 97
Transfer Payments
199
100
163
Capital Expenditure 34
TOTALS
4 278 98
4 955 99
Overall spending
Associated Services has spent R168,898m of the budget of R173,176m for the 4th quarter (98%) and R667,172m of the R672,127m annual budget (99%).
Spending per division
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 R60,409m of the R64,488m budget for the 4th quarter (94%) and R233,379m of the R238,171m annual budget (98%).

38. Associated Services…continuation
Spending on Transfers to Political Parties represented in Parliament for the quarter is 100 percent of the 4th quarter and annual budget.
Economic classification
Compensation of employees
Spending on compensation of employees, which relates to medical aid contributions for former Members of Parliament and Provincial Legislatures is R15,521m of the R14,109m budget for the 4th quarter (110%) and R56,726m of the R55,500m annual budget (102%), resulting in an overspending of R1,412m and R1,226m for the 4th quarter and to date respectively. The overspending is as a result of more Members continuing with membership of medical aid after termination. National Treasury is being engaged with a view of taking over the payment of medical aid to former Members of Parliament and Provincial Legislatures.
Goods and services (Members’ entitlements)
Spending on goods and services relating to Members’ entitlements in terms of the Members Handbook is at R44,882m of the R50,375m budget for the 4th quarter (89%) and R176,619m of the R182,637m annual budget (97%).   
Transfer payments
Spending on transfer payments, which relates to transfers to political parties represented in Parliament for the quarter is 100 percent of the 4th quarter budget and 100 percent of the annual budget.
Capital expenditure
There is no spending on capital expenditure for the 4th quarter and 100 percent or R34k was spent for the financial year.

39. Direct Charges January 2018 – March 2018 Year to date Direct charges
January 2018 – March 2018
Year to date
Economic classification
Budget
(R’000)
Actuals
Variance %
Compensation of Members
66, 533 64 82
TOTALS
66 533
Direct charges
Spending on direct charges relating to Members’ remuneration is 64 percent or R119,228m for the 4th quarter budget of R185,761m and 82 percent or R454,814m of the R556,288m annual budget. An underspending of R101,474m 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 R62,836m and R93,310m respectively. Parliament has engaged National Treasury with a view of re-directing the excess direct charges to areas where there are budgetary pressures, and for the 2018/19 financial year direct charges has been reduced by R95,3m and the money shifted to compensation of employees.

40. Conclusion
Performance in the 4th quarter shows marked improvement from the previous quarters and the previous financial year.
However, indications are that we will continue to operate in a constrained fiscal environment that impedes service delivery.
We will continue to look for ways to improve performance through efficiency initiatives and innovation.
The drive to fill funded critical positions is moving forward with urgency whilst bearing in mind medium to long term sustainability of the institutional balance sheet.
The allocation of institutional resources will focus on the strategic priorities to ensure optimal institutional performance and future sustainability by building and enhancing institutional capacity and capability.