1. 1st Quarter Performance Report 2019/20
Presentation to the Joint Standing Committee on Financial Management of Parliament
1st Quarter Performance Report 2019/20
29 August 2019

2. Introduction

3. Introduction
The 2019/20 Annual Performance Plan is an interim APP in an election year and is still based on the 5th Parliament Strategic Plan and Policy Priorities.
The interim APP indicators are similar to those of the previous financial year. This years APP has 16 indicators compared to the 14 from the previous financial year.
A new APP will be developed after the 6th Parliament Policy Priorities document and 5 year Strategic plan which will be finalized around the end of October. This is done with the Presiding Officers and both Houses of Parliament.
The performance indicators are linked to Parliament’s strategic goals and objectives, the budget programme structure, organisational structure, and are based on the business of Parliament, as set out by the Constitution.

4. Overall Performance

5. 1st Quarter Performance Non-financial indicator Snapshot
PERFORMANC BY STRATEGIC OBJECTIVE (SO) & INDICATOR
SO 2.2
Number of analytical reports per year
SO 2.3
% of strategic, procedural, legal advice and support provided within stipulated timeframes
Percentage of analysis reports on ISDs related matters within agreed time frames
SO 2.4
Number of reports on ISDs related resolutions
SO 1.3
Number of programmes implemented  *
SO 1.2
% of Speakers’ Forum and SALSA resolutions followed up and actioned
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 4.2
Average number of days to reimburse Members
SO 5.1
% of payments made compliant to policy
Target Met
Target Not Met
Annual Target
No TarrgetQuarterly Target
* No 1st quarter target for LSS indicator Number of programmes implemented – no capacity building programmes were run for Members in the 1st quarter

8. Budget Allocation
A budget of R606,491m has been allocated for the 1st quarter of 2019/20 financial year as of follows:

9. Appropriation Statement - per branch
April 2019 – June 2019
Year to date
Main Division
Budget
R’000
Actuals
Variance %
Annual Budget
Actuals & Projections
Strategic Leadership and Governance
22,599
21,834
765 97
104,267
100
Administration
40,444
38,484
1,960 95
175,584
Core Business
138,774
130,431
8,343 94
640,894
639,394
1,500
Support Services
92,699
88,538
4,161 96
440,239
Associated Services
180,095
157,878
22,217 88
720,376
735,357
(14,981)
102
Sub-Total
474,611
437,165
37,446 92
2,081,360
2,094,841
(13,481)
101
Direct Charges
131,880
187,687
(55,807)
142
527,518
639,505
(111,987)
121
TOTALS
606,491
624,852
(18,361)
103
2,608,878
2,734,346
(125,468)
105

10. Appropriation Statement - per branch
Appropriation budget
Parliament has spent 92% or R437,165m of its appropriated budget of R474,611m for the 1st quarter and indications are that there will be an overspending of 1 percent or R 13,481m of the R 2,081,360b annual budget at the end of the financial year. The projected overspending emanates from the Associated Services (transfers to political parties and medical aid contributions for former Members of Parliament) as indicated under programme 5: Associated Services. National Treasury has been engaged to address the shortfall during the Medium Term Budget Policy Statement in line with section 18 (2) (a) of the Financial Management of Parliament and Provincial Legislatures Act, 2009.
Direct Charges
The spending on direct charges is R187,687m or 142% of the 1st quarter budget of R131,880m and indications are that there will be an overspending of 21% or R111,987m of the R527,518m annual budget at the end of the financial year. Overspending and projected overspending for the 1st quarter and annual budget respectively is due to the payment of loss of office and exit gratuities to non-returning Members after the general elections.

11. Budget Allocation (cont…)

12. Appropriation Statement - per economic classification
April 2019 – June 2019
Year to date
Economic Classifications
Budget
R’000
Actuals
Variance %
Annual Budget
Actuals & Projections
Compensation of Members
131,880
187,687
(55,807)
142
527,518
639,505
(111,987)
121
Compensation of Employees
266,587
268,015
(1,428)
101
1,109,709
1,121,091
(11,382)
Goods and Services (APP)
40,151
26,014
14,137 65
290,299
288,799
1,500 99
Goods and Services (Members’ entitlements)
43,750
25,648
18,102 59
175,000
100
Transfers
120,933
115,570
5,363 96
483,730
487,329
(3,599)
Capital Expenditure
3,190
1,918
1,272 60
22,622
TOTALS
606,491
624,852
(18,361)
103
2,608,878
2,734,346
(125,468)
105

13. Appropriation Statement - per economic classification
Compensation of Members
The spending on compensation of Members is R187,687m or 142% of the 1st quarter budget of R131,880m and indications are that there will be an overspending of 21% or R111,987m of the R527,518m annual budget at the end of the financial year. Overspending and projected overspending for the 1st quarter and annual budget respectively is due to the payment of loss of office and exit gratuities to non-returning Members after the 2019 general elections. Until now 171 Members of Parliament lost their seats and/or resigned. National Treasury has been engaged to address the shortfall during the Medium Term Budget Policy Statement in line with section 18 (2) (a) of the Financial Management of Parliament and Provincial Legislatures Act, 2009.
Compensation of employees
The spending on compensation of employees is 100% or R268,015m of the 1st quarter budget of R266,587m, resulting in a minimal variance of R1,428m, and indications are that there will be an overspending of R11,382m at the end of the financial year. The projected overspending is in respect of the payment of medical aid contributions for former Members of Parliament and Provincial legislatures. Until the end of June 2019, 181 former Members of Parliament and Provincial legislatures decided to continue with their medical aid, and Parliament must contribute certain percentages depending on their service. National Treasury has been engaged to address the shortfall during the Medium Term Budget Policy Statement in line with section 18 (2) (a) of the Financial Management of Parliament and Provincial Legislatures Act, 2009, as well as to consider taking over this payment.

14. Appropriation Statement - per economic classification (cont…)
Goods and services (APP)
The spending on goods and services, which relates to the APP, is 46% or R26,014m of the 1st quarter budget of R40,151m resulting in a variance of R14,137m and indications are that the full annual budget will be underspent by 1% or R1,500m due to Events, at the end of the financial year. The reasons for the 1st quarter variance is due to the delay in submission of invoices by service provider, SONA invoices which were paid during July 2019, etc. More details of the variances are provided under programmes performances.
 Goods and services (Members’ entitlements)
The spending on goods and services, which relates to Members’ entitlements, is 59% or R25,648m of the 1st quarter budget of R43,750m, resulting in a variance of R18,102m, and indications are that the full annual budget will be spent at the end of the financial year. Utilization of entitlements is dependent on the Member’s usage and it is anticipated that spending during the next quarters will be higher and offset the low spending in the 1st quarter.
 Transfer payments
Spending on transfer payments, which relates to transfers to political parties represented in Parliament for the quarter is 96% or R115,570m of the R120,933m first quarter budget, resulting in a variance of R5,363 due to political parties which have not yet submitted the required documents and/or queried amounts. Indications are that there will be an overspending of R3,599m or 1% of the annual budget of R483,730 at the end of the financial year due to increase in number of political parties and the reduction of the Executives. National Treasury has been engaged to address the shortfall during the Medium Term Budget Policy Statement in line with section 18 (2) (a) of the Financial Management of Parliament and Provincial Legislatures Act, 2009.
 Capital expenditure
The spending on capital expenditure is 60% or R1,918m of the 1st quarter budget of R3,190m resulting in a variance of R1,272m or 40%, and indications are that the full annual budget of R22,622m will be spent at the end of the financial year. The low spending for the quarter is due to the delay in procurement of once off capital expenditure relating to the insourcing of cleaning services and computer software.

15. Programme Performance

17. Programme 1: Strategic Leadership and Governance (cont…)
Strategic Objective 2.2: Improve independent, objective and professional analysis and advice on matters related to the budget and other Money Bills tabled in Parliament by increasing advisory and analytical reports from 8 to 19 by 2019.
Performance Indicators
1st Quarter Target
Actual performance
Variance
Status
Reasons for variance & mitigation factors
2.2
Number of analytical reports per year 6 3 -3
The negative variance was caused mainly by the close of Parliament at the end of March 2019, and the absence of Committee work as a result
PERFORMANCE TRENDS
A total of 3 analysis reports were produced by the PBO in quarter 1 which included 2 presentations requested for Parliament Strategic Planning process in May, as well as 1 brief for the Police Budget Vote in June .

18. Programme 1: Strategic Leadership and Governance (cont…)
Strategic Objective 2.3: Improve the provision of objective strategic, procedural and legal advice, research and content support to Parliament on ISDs related matters to strengthen constitutional democracy
Performance Indicators
1st Quarter Target
Actual performance
Variance
Status
Reasons for variance & mitigation factors
2.3
Percentage of strategic, procedural, legal advice and support provided within stipulated timeframes
100% in 7 days
81,25% (13 of 16)
-18,75%
Reason for underperformance is a lack of a common approach in processing requests for advisory services. Business processes were subsequently developed and the provision of services standardised
Percentage of analysis reports on ISDs related matters within agreed time frames
100% (2 of 2)
PERFORMANCE TRENDS
The establishment of the 6th Parliament delayed the setting up of NA Portfolio Committees and consequently resulted in the inability to appropriately refer tabled reports as a result of the election year.

19. Programme 1: Strategic Leadership and Governance (cont…)
Strategic Objective 2.4: Improve stakeholder liaison and coordination by facilitating implementation of Parliament’s resolutions on ISDs related matters
Performance Indicators
1st Quarter Target
Actual performance
Variance
Status
Reasons for variance & mitigation factors
2.4
Number of reports on ISDs related resolutions 1
PERFORMANCE TRENDS
The OISD was requested to make a presentation on the role and mandate of the OISD, constitutional independence of ISDs and on the progress regarding the Task Team report dealing with amalgamation and the shifting of the budgets of ISDs. The induction tool place on the 16 and 17 April 2019.

20. Programme 1: Strategic Leadership and Governance (cont…)
April 2019 – June 2019
Year to date
Main Division
Budget
R’000
Actuals
Variance %
Annual Budget
Actuals & Projections
Office of the Speaker
8,855
8,596
259 97
43,384
100
Office of the Chairperson
7,784
7,608
176 98
36,833
Parliamentary Budget Office
3,805
3,568
237 94
15,395
Office of the Institutions Supporting Democracy
2,155
2,062 93 96
8,655
TOTALS
22,599
21,834
765
104,267
Overall spending
Strategic Leadership and Governance programme has spent 97% or R21,834m of the budget of R22,599m for the 1st quarter resulting in a minimal variance of R765k and indications are that there will be a full spend of the R104, 267m annual budget at the end of the financial year.
Spending per division
The Office of the Speaker has spent 97% or R8,596m of the budget for the 1st quarter of R8,855m resulting in a minimal variance of R259k, and indications are that the full annual budget of R43,384m will be spent at the end of the financial year.
The Office of the Chairperson has spent 98% or R7,608m of the R7,784m budget for the first quarter resulting in a minimal variance of R176k, and indications are that the full annual budget of R36,833m will be spent at the end of the financial year.
The Parliamentary Budget Office has spent 94% or R3,568m of the budget for the 1st quarter resulting in a variance of 6% or R237k, which is due to the fact that the office is not fully capacitated and most of the activities could not be undertaken. Indications are however that there will be a full spend of the R15,395m annual budget at the end of the financial year.
The Office of Institutions Supporting Democracy has spent 96% or R2,062m of the R2 155m budget for the 1st quarter and indications are however that there will be a full spend of the R8,655m annual budget at the end of the financial year.

21. Programme 1: Strategic Leadership and Governance (cont…)
April – June 2019
Year to date
Economic Classifications
Budget
R’000
Actuals
Variance %
Annual Budget
Actuals & Projections
Compensation of Employees
20,826
20,664
162 99
86,567
100
Goods and Services
1,754
1,152
602 66
17,353
Capital Expenditure 19 18 1 95
347
TOTALS
22,599
21,834
765 97
104,267
Compensation of employees
The spending on compensation of employees is 99% of the R20,664m 1st quarter budget or R20,826m resulting in a minimal variance of R162k, and indications are that there will be a full spend of the R86,567m annual budget at the end of the financial year.
Goods and services (APP)
The spending on goods and services is 66% or R1,152m of the 1st quarter budget of R1,754m resulting in a variance of R602k or 34% and indications are that there will be a full spend of the R17,353m annual budget at the end of the financial year. The low spending for the 1st quarter is due to the fact that some activities were postponed due to the preparations for the 2019 general elections and activities not undertaken in the PBO due to the fact that the office does not have a director as well as delays in submission of invoices by service providers.
Capital expenditure
The spending on capital expenditure is 95% or R18k of the 1st quarter budget of R19k resulting in a minimal variance of R1k or 5% and indications are that there will be a full spend of the R347k annual budget at the end of the financial year

23. Programme 2: Administration (cont…)
Strategic Objective 1.3: Improve institutional capacity by providing specialised development programmes for Members
Performance Indicators
1st Quarter Target
Actual performance
Variance
Status
Reasons for variance & mitigation factors
1.3
Number of programmes implemented
n/a
Number of reports prepared on implementation of Sector Strategy 1
PERFORMANCE TRENDS
While no capacity building programmes took place for Members this quarter, 7 legislatures, including Parliament, held their induction programmes.
The draft sector results chain was developed. Legislatures also submitted their legacy reports and SWOT analysis document towards the preparation for the Sector Environmental Analysis.

24. Programme 2: Administration (cont…)
April 2019 – June 2019
Year to date
Main Division
Budget
R’000
Actuals
Variance %
Annual Budget
Actuals & Projections
Secretary’s Office
3,432
3,057
375 89
11,666
100
Finance Management Office
13,053
13,018 35
56,136
Internal Audit
4,212
3,572
640 85
16,237
Strategic Management & Governance
7,374
7,428
(54)
101
30,155
Registrar of Members Interest
585
541 44 92
2,757
Legislative Sector
6,588
5,714
874 87
40,713
Projects
5,200
5,154 46 99
17,920
TOTALS
40,444
38,484
1,960 95
175,584

25. Programme 2: Administration (cont…)
Overall spending
The Administration has spent 95% or R38,484m of the budget of R40,444m for the 1st quarter resulting in a variance of R1,960m or 5%, and indications are that there will be a full spend of the R175,584m annual budget at the end of the financial year.
Spending per division
The Secretary’s Office has spent 89% or R3,057m of the R3,432m budget for the 1st quarter resulting is a variance of R375k or 11%, and indications are that the full annual budget of R11,666m will be spent at the end of the financial year. The low spending for the 1st quarter is due to projected legal fees that was not yet paid as invoices are not yet received.
The Finance Management Office has spent 100% or R13,018m of the R13,053m budget for the 1st quarter resulting in a minimal variance of R35k, and indications are that the full annual budget of R56,136m will be spent at the end of the financial year.
Internal Audit has spent 85% or R3,572m of the R4,212m budget for the 1st quarter resulting in a variance of R640k or 15% and indications are that the full annual budget of R16,237m will be spent at the end of the financial year. The low spending for the 1st quarter is due to the June 2019 audit fees invoice which was paid in July 2019.
The Strategic Management & Governance has spent 101% or R7,428m of the R7,374m budget for the 1st quarter resulting in a minimal variance of R54k, and indications are that the full annual budget of R30,155m will be spent at the end of the financial year.
The Registrar of Members Interest has spent 92% or R541k of the R585k budget for the 1st quarter resulting in a variance of R44k or 8%, and indications are that the full annual budget of R2,757m will be spent at the end of the financial year. The low spending for the 1st quarter is due to the delay in receiving training invoices.
Legislative Sector Support has spent 87% or R5,714m of the R6,588m budget for the 1st quarter resulting in a variance of R874k or 13% and indications are that the full annual budget of R40,713m will be spent at the end of the financial year. The low spending for the 1st quarter is due to postponement of sector programmes due to preparations of the 2019 general elections.
Projects has spent 99% or R5,154m of the R5,200m budget for the 1st quarter resulting in a minimal variance of R46k, and indications are that the full annual budget of R17,920m will be spent at the end of the financial year.

26. Programme 2: Administration (cont…)
April 2019 – June 2019
Year to date
Economic Classifications
Budget
R’000
Actuals
Variance %
Annual Budget
Actuals & Projections
Compensation of Employees
30,081
29,870
211 99
117,615
100
Goods and Services
10,346
8,598
1,748 83
53,418
Capital Expenditure 17 16 1 94
4,551
TOTALS
40,444
38,484
1,960 95
175,584
Compensation of employees
The spending on compensation of employees is 99% of the R29,870m 1st quarter budget or R30,081m resulting in a minimal variance of R211k, and indications are that there will be a full spend of the R117,615m annual budget at the end of the financial year.
Goods and services (APP)
The spending on goods and services is 83% or R8,598m of the 1st quarter budget of R10,346m resulting in a variance of 17% or R1,742m and indications are that there will be a full spend of the R53,418m annual budget at the end of the financial year. The low spending for the 1st quarter is due to delays in payment of the June 2019 audit fees invoice which was paid in July 2019, delay in receipt of the legal fees invoice as well as postponement of the sector programmes due to preparations for the 2019 general elections.
Capital expenditure
The spending on capital expenditure is 35% or R16k of the 1st quarter budget of R46k resulting in a minimal variance of R1k and indications are that there will be a full spend of the R4,551m annual budget at the end of the financial year.

28. Programme 3: Core Business (cont…)
Strategic Objective 2.1: Improve the availability of advisory and information services, in support of plenary and committee proceedings, from 91% to 95% by 2021.
Performance Indicators
1st Quarter Target
Actual performance
Variance
Status
Reasons for variance & mitigation factors
2.1
% of information available as per Service Charter levels
94%
99,64%
+5,64%
PERFORMANCE TRENDS
Only 1 indicator fell marginally below its target of 100%, i.e. 98% of procedural advise was delivered within the required time.

29. Programme 3: Core Business (cont…) Service Charter 2019/2020 sub-indicators

30. Programme 3: Core Business (cont…)
Strategic Objective 3.1: Increase access and participation in the processes of Parliament through enhanced programmes to ensure participatory democracy.
Performance Indicators
1st Quarter Target
Actual performance
Variance
Status
Reasons for variance & mitigation factors
3.1 a
% Population having access to participate in parliamentary processes
Annual Target
11%
n/a B
% Population participating in parliamentary processes 6%
Terms of reference and request for quotation have been finalized for the survey.
PERFORMANCE TRENDS
Stakeholder workshops were held in the Northern Cape and the North West Province on the 6th Parliament, SONA, Budget speech and the 4th Industrial Revolution
5 Democracy Education workshops were conducted
The visitors’ programme is under review to revitalise it as the flagship inbound programme of Parliament
2640 Tours’ Visitors

31. Programme 3: Core Business (cont…)
April 2019 – June 2019
Year to date
Main Division
Budget
R’000
Actuals
Variance %
Annual Budget
Actuals & Projections
Deputy Secretary: Core Business
960
4,116
100
Events (SONA, Youth & Women Parliaments)
4,500
7,500
6,000
1,500 80
National Assembly
10,034
10,017 17
43,713
National Council of Provinces
8,497
7,910
587 93
54,313
Core Business Support
61,556
58,961
2,595 96
299,943
Knowledge and Information Services
47,048
47,393
(345)
101
188,418
International Relations and Protocol
6,179
6,150 29
42,891
TOTALS
138,774
130,431
8,343 94
640,894
639,394

32. Programme 3: Core Business (cont…)
Overall spending
The Core Business has spent 94% or R130,431m of the budget of R138,774m for the 1st quarter and indications are that there will be a R 1,500m underspending at the end of the financial year.
Spending per division
There is no spending of the R960k and R4,500m budget for the 1st quarter by the Deputy Secretary: Core and Events respectively, and indications are that the full R4,116m annual budget for the Deputy Secretary will be spent at the end of the financial year, whereas indications are that there will be underspending of R1,500m for Events at the end of the financial year. The non-spending for the quarter is due to the fact that SONA happened late in June 2019 and invoices will be received and paid during July 2019.
National Assembly has spent 100% or R10,017m of the R10,034m budget for the 1st quarter and indications are that the full R43,713m annual budget will be spent at the end of the financial year.
National Council of Provinces has spent 93% or R7,910m of the R8,497m budget for the 1st quarter resulting in a variance of R587k or 7% and indications are that the full annual budget of R54,313m will be spent at the end of the financial year. The low spending for the quarter is due to the delay in receiving of travel invoices.
The Core Business Support has spent 96% or R58,961m of the R61,556m budget for the 1st quarter resulting in a minimal variance of R2,595m or 4% and indications are that the full R299,943m annual budget will be spent at the end of the financial year.
The Knowledge and Information Services has spent 101% or R47,393m of the R47,048m budget for the 1st quarter resulting in a minimal variance of R345k or 1% and indications are that the full R188,418m annual budget will be spent at the end of the financial year.
International Relations and Protocol has spent 100% or R6,150m of the R6,179m budget for the 1st quarter resulting in a minimal variance of R29k due to the delay in receiving subscription invoices. Indications are that the full annual budget of R42,891m will be spent at the end of the financial year.

33. Programme 3: Core Business (cont…)
April 2019 – June 2019
Year to date
Economic Classifications
Budget
R’000
Actuals
Variance %
Annual Budget
Actuals & Projections
Compensation of Employees
122,632
122,280
352
100
506,151
Goods and Services
15,650
8,010
7,640 51
130,848
129,348
1,500 99
Capital Expenditure
492
141
351 29
3,895
TOTALS
138,774
130,431
8,343 94
640,894
639,394
Compensation of employees
The spending on compensation of employees is 100% or R122,280m of the R122,632m budget for the 1st quarter resulting in a minimal variance of R352k, and indications are that the full annual budget of R506,151m will be spent at the end of the financial year.
Goods and services (APP)
The spending on goods and services is 51% or R8,010m of the 1st quarter budget of R15,650m resulting in a variance of R7,640m or 49% and indications are that there will be an underspending of R 1,500m on at the end of the financial year.
Capital expenditure
The spending on capital expenditure is 29% or R141k of the 1st quarter budget of R492k resulting in a variance of R351k or 71% and indications are that the full annual budget of R3,895m will be spent at the end of the financial year. The low spending for the quarter is due to the delay in procurement of computer software.

35. Programme 4: Support Services (cont…)
Strategic Objective 1.1: Improve overall Member satisfaction with services rendered, from 61% to 64% by 2021*
Performance Indicators
1st Quarter Target
Actual performance
Variance
Status
Reasons for variance & mitigation factors
1.1
Client satisfaction level (% of clients satisfied with service levels)
Annual 62%
n/a
Terms of reference and request for quotation have been finalized for the survey.
PERFORMANCE TRENDS
PCS hosted a delegation from April 2019 from the Zambian Parliament where best practices in the communication space was shared among other.
PCS participated in a Sector Communication strategic planning workshop from15-16 April The purpose of the planning session was to ensure that all communicators from the sector synchronise their planning and work.
The first Sittings of the 6th Parliament for two Provincial Legislatures and eight State of the Provinces were scheduled on the DSTV channel.

36. Programme 4 : Support Services (cont…)
Strategic Objective 1.5: Increase awareness of the business of Parliament from 27% to 29% by 2021, by improving the communication of Parliament.
Performance Indicators
1st Quarter Target
Actual performance
Variance
Status
Reasons for variance & mitigation factors
1.5
% of population who are aware of the business of Parliament
Annual 27%
n/a
Terms of reference and request for quotation have been finalized for the survey.
PERFORMANCE TRENDS
Supporting the Programme of Parliament:
Communication plans and activities implemented during the quarter in support of the programme of Parliament include: Freedom Day; Worker’s Day; National Elections; 6th Parliament; First Sittings of both NA and NCOP; the State of the Nation Address; Youth Day; Induction Programme of new Members; elections of Committee Chairs; First NA and NCOP Committee meetings; Africa Month; Women in Leadership Award Ceremony, Zambia benchmarking visit.
Dedicated social media support, live tweeting and uploads on all parliamentary platforms.
Dedicated communication support including facilitating the promotion of Parliamentary activities to the public.
Facilitation of media interviews for radio and television
Multiple articles written for publications and the website to create a heightened awareness of Parliament’s programme.
Drafting plans and speaking notes for specific projects of Parliament and engagements of the Presiding Officers.
Media releases compiled and sent out to the media distribution list.

37. Programme 4: Support Services (cont…)
Strategic Objective 1.4: Leverage current, new and innovative technologies to meet the information and communication needs of Members and staff by increasing universal access of integrated information services from 80% to 85% by 2021.
Performance Indicators
1st Quarter Target
Actual performance
Variance
Status
Reasons for variance & mitigation factors
1.4
% of universal access
Annual 80%
80.75%
+0,75%
PERFORMANCE TRENDS
The total average for web and mobile accessibility was 80.75% for the 1st quarter of
ICT availability is measured according to accessibility and availability. Accessibility means that ICT services are accessible from web and mobile platform, while availability means the percentage (%) of time that the ICT systems are in an operable state (functional to the total time it is required or expected to function) and is commonly measured as Uptime / Total time (Uptime + Downtime). Access to information and processes of Parliament enable greater accessibility, transparency and openness.
Access to information and processes of Parliament also enhances effectiveness and efficiency thus improving productivity.

38. Programme 4: Support Services (cont…)
Strategic Objective 1.6: Optimise facilities’ usage and provide adequate and appropriate functional space by creating a conducive working environment to achieve an increased level of satisfaction, from 67% to 70% by 2021.
Performance Indicators
1st Quarter Target
Actual performance
Variance
Status
Reasons for variance & mitigation factors
1.6
Client satisfaction level (% clients satisfied with service levels)
Annual 68%
n/a
Terms of reference and request for quotation have been finalized for the survey.
PERFORMANCE TRENDS
With the aim of improving client satisfaction by Members in institutional Support Services, re-engineering of the cleaning services is underway and cleaning was done as planned.

39. Programme 4: Support Services (cont…)
Strategic Objective 1.6: Increase availability of strategic competencies, talent and skills by increasing performance on the talent management index by 3% by 2021.
Performance Indicators
1st Quarter Target
Actual performance
Variance
Status
Reasons for variance & mitigation factors
1.7
% increase in talent management index *
Annual 1%
n/a

40. Programme 4: Support Services (cont…)
April 2019 – June 2019
Year to date
Main Division
Budget
R’000
Actuals
Variance %
Annual Budget
Actuals & Projections
Deputy Secretary: Support Services
950
935 15 98
4,572
100
Parliamentary Communication Services
14,567
13,106
1,461 90
65,430
Human Resources
15,143
14,965
178 99
101,279
Information Communication and Technology
18,403
18,223
180
81,830
Institutional Support Services
39,467
37,283
2,184 94
171,438
Members Support
4,169
4,025
144 97
15,690
TOTALS
92,699
88,537
4,162 96
440,239

41. Programme 4: Support Services (cont…)
April 2019 – June 2019
Year to date
Economic Classifications
Budget
R’000
Actuals
Variance %
Annual Budget
Actuals & Projections
Compensation of Employees
77,636
77,611 25
100
337,730
Goods and Services
12,401
9,183
3,218 74
88,680
Capital Expenditure
2,662
1,743
919 65
13,829
TOTALS
92,699
88,537
4,162 96
440,239
Compensation of employees
The spending on compensation of employees is 100% or R77,611m of the R77,636m budget for the 1st quarter resulting in a minimal variance of R25k, and indications are that the full annual budget of R337,730m will be spent at the end of the financial year.
Goods and services (APP)
The spending on goods and services is 74% or R9,183m of the 1st quarter budget of R12,401m resulting in a variance of R3,218m or 56% and indications are that the full annual budget of R88,680m will be spent at the end of the financial year. The low spending for the quarter is due to the delay in receiving catering invoices.
Capital expenditure
The spending on capital expenditure is 65% or R1,743m of the 1st quarter budget of R2,662m resulting in a variance of R919k or 35% and indications are that the full annual budget of R13,829m will be spent at the end of the financial year. The low spending for the quarter is due to the delay in procurement of once off capital expenditure relating to the insourcing of cleaning services.

42. Programme 4: Support Services (cont…)
Overall spending
The Support Services has spent 96% or R88,537m of the R92,699m budget for the 1st quarter and indications are that there will be a full spend of the R440, 239m annual budget at the end of the financial year.
Spending per division
The Deputy Secretary: Support Services has spent 98% or R935k of the R950k budget for the 1st quarter resulting in a minimal variance of R15k or 2% and indications are that the full R4,572m annual budget will be spent at the end of the financial year.
The Parliamentary Communication Services has spent 90% or R13,106m of the R14, 567m budget for the 1st quarter resulting in a variance of R1,461m or 10% and indications are that the full annual budget of R65,430m will be spent at the end of the financial year. The low spending for the quarter is due to the delay and implementation of various activities, including the Website upgrade, Media monitoring report, in session Publication and the delay in receiving SABC invoices for SONA 2019.
The Human Resources has spent 90% or R14, 965m of the R15, 143m budget for the 1st quarter resulting in a minimal variance of R178k and indications are that the full annual budget of R101,279m will be spent at the end of the financial year.
The Information Communication and Technology has spent 99% or R18, 223m of the R18, 403m budget for the 1st quarter resulting in a minimal variance of R180k and indications are that the full annual budget of R81,830m will be spent at the end of the financial year.
Institutional Support Services has spent 94% or R37,283m of the R39,467m budget for the 1st quarter resulting in a variance of R2,184m or 6% and indications are that the full annual budget of R171,438m will be spent at the end of the financial year. The low spending for the quarter is due to the delay in receiving catering invoices.
Members Supports Services has spent 97% or R4,025m of the R4,169m budget for the 1st quarter resulting in a minimal variance of R144k or 3% and indications are that the full R15,690m annual budget will be spent at the end of the financial year.

44. Programme 5: Associated Services (cont…)
Strategic Objective 4.2: Reduce average turnaround time for the processing and payment of reimbursements to Members from 2.5 to 2.4 working days by 2021.
Performance Indicators
1st Quarter Target
Actual performance
Variance
Status
Reasons for variance & mitigation factors
4.2
Average number of days to reimburse Members
2.5 Days
2.78 Days
-0,28
End of term 5th Parliament and establishment of 6th Parliament resulted in high administration pressure. Operational resources were required to support end of term and establishment
PERFORMANCE TRENDS
End of term 5th Parliament and establishment of 6th Parliament resulted in high administration pressure.

45. Programme 5: Associated Services (cont…)
Strategic Objective 5.1: Ensure effective payment and compliance of transfer payments.
Performance Indicators
1st Quarter Target
Actual performance
Variance
Status
Reasons for variance & mitigation factors
5.1
% of payments made compliant with policy
100%
PERFORMANCE TRENDS
End of term 5th Parliament and establishment of 6th Parliament resulted in high administration pressure.

46. Programme 5: Associated Services (cont…)
April – June 2019
Year to date
Main Division
Budget
R’000
Actuals
Variance %
Annual Budget
Actuals & Projections
Members Facilities
59,162
42,308
16,854 72
236,646
248,028
(11,382)
105
Transfer to Political Parties
120,933
115,570
5,363 96
483,730
487,329
(3,599)
101
TOTALS
180,095
157,878
22,217 88
720,376
735,357
(14,981)
102
Overall spending
The Associated Services has spent 88% or R157,878m of the R180,095m budget for the 1st quarter resulting in a variance of R22,217m or 12% and indications are that there will be an overspending of R14, 981m or 2% of the R720,357m annual budget.
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 72% or R42,308m of the 1st quarter budget of R59,162m resulting in a variance of R16,854m or 28% and indications are that there will be an overspending of R11,382m at the end of the financial year.
The low spending for the 1st quarter is in respect of Members’ entitlements and utilization of entitlements is dependent on the Member’s usage and it is anticipated that spending during the next quarters will be higher and offset the low spending in the 1st quarter. The projected overspending of R11,382m is in respect of the payment of medical aid contributions for former Members of Parliament and Provincial legislatures. Until the end of June former Members of Parliament and Provincial legislatures decided to continue with their medical aid, and Parliament must contribute certain percentages depending on their service. National Treasury has been engaged to address the shortfall during the Medium Term Budget Policy Statement in line with section 18 (2) (a) of the Financial Management of Parliament and Provincial Legislatures Act, 2009, as well as to consider taking over this payment.
Spending on Transfers to Political Parties, which relates to transfers to political parties represented in Parliament for the quarter is 96% or R115,570m of the R120,933m 1st quarter budget, resulting in a variance of R5,363 due to political parties which have not yet submitted the required documents and/or queried amounts, and indications are that there will be an overspending of R3,599m at the end of the financial year as indicated below.

47. Programme 5: Associated Services (cont…)
April – June 2019
Year to date
Economic Classifications
Budget
R’000
Actuals
Variance %
Annual Budget
Actuals & Projections
Compensation of employees
15,412
16,660
(1,248)
108
61,646
73,028
(11,382)
118
Goods and services (Members’ entitlements)
43,750
25,648
18,102 59
175,000
100
Transfer Payments
120,933
115,570
5,363 96
483,730
487,329
(3,599)
101
TOTALS
180,095
157,878
22,217 88
720,376
735,357
(14,981)
102

48. Programme 5: Associated Services (cont…)
Compensation of employees
Spending on compensation of employees, which relates to medical aid contributions for former Members of Parliament and Provincial Legislatures, is 108% or R16,660m of the R15, 412m 1st quarter budget of R15,412m resulting in a variance of R1,248m or 8% and indications are that there will be an overspending of R11,382m or 18% at the end of the financial year. The overspending is due to the payment of medical aid contribution for former Members of Parliament and Provincial Legislatures. Until the end of June former Members of Parliament and Provincial legislatures decided to continue with their medical aid, and Parliament must contribute certain percentages depending on their service. National Treasury has been engaged to address the shortfall during the Medium Term Budget Policy Statement in line with section 18 (2) (a) of the Financial Management of Parliament and Provincial Legislatures Act, 2009, as well as to consider taking over this payment.
Goods and services (Members’ entitlements)
The spending on goods and services, which relates to Members’ entitlements, is 59% or R25,648m of the 1st quarter budget of R43,750m, resulting in a variance of R18,102m, and indications are that the full annual budget will be spent at the end of the financial year. Utilization of entitlements is dependent on the Member’s usage and it is anticipated that spending during the next quarters will be higher and offset the low spending in the 1st quarter.
Transfer payments
Spending on transfer payments, which relates to transfers to political parties represented in Parliament for the quarter is 96% or R115,570m of the R120,933m 1st quarter budget, resulting in a variance of R5,363 due to political parties which have not yet submitted the required documents and/or queried amounts and indications are that there will be an overspending of R3,599m at the end of the financial year, which is as a result of the increase in political parties from 13 during the 4th and 5th Parliaments to 14 during the 6th Parliament, as well as the reduction of Members of the Executives from 75 to 63. National Treasury has been engaged to address the shortfall during the Medium Term Budget Policy Statement in line with section 18 (2) (a) of the Financial Management of Parliament and Provincial Legislatures Act, 2009, as well as to consider taking over this payment.

49. Direct Charges April 2019 – June 2019 Year to date
April 2019 – June 2019
Year to date
Economic Classifications
Budget
R’000
Actuals
Variance %
Annual Budget
Actuals & Projections
Compensation of Members
131,880
187,687
(55,807)
142
527,518
639,505
(111,987)
121
TOTALS
Direct charges
Spending on direct charges, which relates to Members’ remunerations, R187,687m or 142% or the 1st quarter budget of R131,880m and indications are that there will be an overspending of 21% or R111,987m of the R527,518m annual budget at the end of the financial year. Overspending and projected overspending for the 1st quarter and annual budget respectively is due to the payment of loss of office and exit gratuities to non-returning Members after the 2019 general elections. Until now 171 Members of Parliament lost their seats and/or resigned. National Treasury has been engaged to address the shortfall during the Medium Term Budget Policy Statement in line with section 18 (2) (a) of the Financial Management of Parliament and Provincial Legislatures Act, 2009.

50. Thank you