1. 11 July 2019
APP Presentation to the Joint Standing Committee on Financial Management of Parliament June 2019

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

3. PART A
BACKGROUND

4. 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.

5. 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 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.

6. PARLIAMENTARY CONTEXT OF PLANNING: GLOBAL, REGIONAL AND LOCAL CONTEXT

7. 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

8. 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

9. PART B
PROGRAMME STRUCTURE

10. 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

11. 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.

12. BUDGETARY INFORMATION
PART C
BUDGETARY INFORMATION

13. 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.

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

15. 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

16. TOTAL ALLOCATIONS…CONTINUATION

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

18. PROGRAMME BUDGET ALLOCATIONS
PART D
PROGRAMME BUDGET ALLOCATIONS

19. 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

20. 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

21. 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

22. 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

23. 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

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

25. 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)

26. 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.

27. THANK YOU