ATC211203: Report of the Joint Standing Committee on the Financial Management of Parliament on the Parliament of the Republic of South Africa’s Draft Annual Performance Plan for 2022/23, dated 26 November 2021

Joint Standing Committee on Financial Management of Parliament

Report of the Joint Standing Committee on the Financial Management of Parliament on the Parliament of the Republic of South Africa’s Draft Annual Performance Plan for 2022/23, dated 26 November 2021.

 

The Joint Standing Committee on the Financial Management of Parliament, having considered the Parliament of the Republic of South Africa’s draft Annual Performance Plan for 2022/23, reports as follows:

 

1.         Introduction

1.1       Section 4 of the Financial Management of Parliament and Provincial Legislatures Act, No 10 of 2009 (the FMPPLA) provides for the establishment of an oversight mechanism to maintain oversight of the financial management of Parliament. The Joint Standing Committee on the Financial Management of Parliament (the Committee) was established in terms of the Joint Rules of Parliament. The Committee has the powers afforded to parliamentary committees under sections 56 and 69 of the Constitution of the Republic of South Africa, 1996 (the Constitution).

1.2       Parliament derives its mandate from:

-           Chapter 4 of Constitution the which sets out its composition, powers and functions;

-           the FMPPLA which regulates the institution’s financial management;

-           the Money Bills Amendment Procedure and Related Matters Act, 2009, No 9 of 2009 (Money Bills Act) which provides procedures to amend money bills; and

-           the Powers, Privileges and Immunities of Parliament and Provincial Legislatures Act of 2004, No 4 of 2004 which defines and declares the national and provincial legislatures’ powers, privileges and immunities.

1.3       Parliament has as its vision to be an activist and responsive people’s Parliament that improves the quality of life of South Africans and ensures enduring equality in our society. Its mission is to represent the people and to ensure government by the people in fulfilling its constitutional functions of passing laws and overseeing executive action. To this end, the institution conducts its business in line with the following values: openness, responsiveness, accountability, teamwork, professionalism, and integrity.

1.4       Section 17(1) of the FMPPLA requires that the Executive Authority table planning and budgeting documents in Parliament for referral to the oversight mechanism. These include the draft annual performance plan (APP) and draft budget which should be tabled at least one month before the draft budget must be submitted to the National Treasury.

1.5       This report comprises four parts:

-           an overview of the draft APP (Part A)

-           an overview of the draft budget (Part B);

-           observations (Part C); and

-           recommendations (Part D).

1.6       This report should be read with the Committee’s report on the Strategic Plan of the Sixth Parliament.

 

PART A

 

2.         Overview of the draft Annual Performance Plan

2.1       Strategic Plan of the Sixth Parliament

2.2.1     Section 14(1) of the FMPPLA requires that the accounting officer must prepare and present the draft strategic plan to the Executive Authority within six months of the election of the National Assembly (NA), or by another date determined by Parliament.

2.2.2     Section 14(2) of the FMPPLA requires that the draft strategic plan must:

                        -           cover the following five years or another period determined by Parliament;

                        -           specify the administration’s priorities for the period of the strategic plan;

                        -           include objectives and outcomes for each of Parliament’s programmes;

                        -           include multi-year projections of all revenue and expenditure; and

-           include performance measures and indicators for assessing the administration’s performance in implementing the strategic plan.

2.2.3     The Medium Term Strategic Framework (MTSF) sets out the government’s strategic plan for 2019 to 2024. It contains 7 priorities, 81 outcomes with 561 indicators. Parliament will monitor the overall impact of the development indicators contained in it.

2.2.4     The implementation of the strategic plan is achieved through annual performance plans (APP) and associated operational plans and budgets. APPs outline the outputs that must be delivered to achieve the outcomes in strategic plans. Operational plans in turn focus on the activities and inputs needed to deliver outputs.

2.2.5     The 2022/23 APP will be the second towards the implementation of the Strategic Plan of the Sixth Parliament which was approved in 2020. It is a continuation of the changes that were first introduced on 2021/22.

2.2.6     In 2021/22 Parliament reduced its programmes from five to three programmes. Additionally, since 2021/22 performance is measured using the client satisfaction model rather than the more conventional method informed by the framework on strategic and annual performance plans of the Department of Planning, Monitoring and Evaluation (DPME).

 

2.2       Programme overview

Programme 1: Administration

2.21      Programme 1 provides strategic leadership, governance, management, corporate and support services to Parliament. It consolidates three former programmes namely Strategic Leadership and Governance, Administration and Support Services. Programme 1 comprises the following sub-programmes: Executive Authority, Office of the Secretary, and Corporate and Support Services.

2.2.2     The administration has identified the following key focus areas for 2021/22:

-           addressing the future way of work through the development of a new business model for the Parliamentary Service;

-           redesigning and optimising core and support business processes through technology;

-           upskilling and re-skilling programmes especially in relation to the effective use of technology;

-           specialised skills programmes for expertise and specialisation;

-           continuous innovation and improving of processes and skills, allowing for co-creation and value adding;

-           integrating service offerings through a collaborative approach where service recipients are offered a holistic response;

-           providing policy, tools and facilities for remote conditions; and

-           implementing virtual meetings and collaboration platforms.

 

2.2.3     Table 1 reflects the annual performance targets for Programme 1.

Parliamentary service	Output indicator	Annual Performance Targets
		Estimates			Estimated	MTEF
		2018/19	2019/20	2020/21	2021/22	2022/23	2023/24	2024/25
Digital Service	% Members satisfaction	-	72	74	74	75	75	75
Facilities Management Service	% Members satisfaction	-	67	48	60	65	70	70

Table 1: Programme 1 – Performance Targets (Source: Parliament of the RSA)

 

Programme 2: Legislation and Oversight

2.2.4     Programme 2 provides for support services for the effective functioning of the National Assembly (NA) and the National Council of Provinces (NCOP) including procedural, legal and content advice; information services and record keeping; and secretarial and support services for the houses and their committees. The programme covers the core business of Parliament and focusses on the outputs, activities and inputs related to legislation and oversight functions.

2.2.5     The programme comprises the following sub-programmes: NA (House; Committees); NCOP (House; Committees); Public Participation and External Relations; Shared Services; Sectoral Parliaments and Joint Business.

2.2.6     As of 2021/22 Parliament implemented a new programming framework with a shift towards dedicated constituency, committee and plenary weeks. The new framework also allows for the scheduling of joint committee and joint inter-sectoral work.

2.2.7     In respect of members’ capacity building, the institution will do continuous needs assessments; improve co-ordination and co-operation between role-players; integrate individual capacity building programmes; and initiate processes to measure the usefulness of the programmes.

2.2.8     In respect of Knowledge and Information Services (KIS), the institution identified the following objectives for 2022/3:

                        -           to develop a 3-year research plan in support of the oversight plan;

-           to coordinate the various information providers into an integrated and seamless delivery model;

-           to ensure equal access to information services;

-           to forge improved collaboration with partners;

-           to augment the information dissemination process, ensuring improved packaging, information simplicity, and ease of use of information products;

-           to introduce institutional standards and quality management processes to ensure quality and objectivity;

-           to establish a Research Advisory Panel to guide and advise information services; and

-           to implement an institutional knowledge management strategy, ensuring institutional data and information management processes.

2.2.8     To expand public participation the institution will:

-           implement interventions focussing on public education and information, mobilising public stakeholders, and the use of digital and preferred platforms, with virtual public meetings, e-hearings and e-petitions;

-           broaden cooperation with partners and stakeholders in the legislative sector, government, community organisations, constituencies; and

-           consolidate current programmes, capacities and resources into a single service to support public participation activities.

2.2.9     Table 2 below sets out the annual performance targets relating to the planning framework, and to capacity building.

 

Parliamentary service	Output indicator	Annual Performance Targets
		Estimates			Estimated	MTEF
		2018/19	2019/20	2020/21	2021/22	2022/23	2023/24	2024/25
Programming Service	Number of annual parliamentary programmes adopted	1	1	1	1	1	1	1
	Number of NA programmes adopted	4	4	4	4	4	4	4
	Number of NCOP programmes adopted	4	4	4	4	4	4	4
Capacity Building Programmes	% Members satisfaction	-	-	Establish baseline	65%	70%	70%	70%
Research	% Members satisfaction	-	57%	53%	70%	70%	70%	70%
Content Advice	% Members satisfaction	-	44%	70%	70%	70%	70%	70%
Procedural Advice	% Members satisfaction	-	64%	69%	70%	70%	70%	70%
Legal Advice	% Members satisfaction	-	48%	43%	65%	70%	70%	70%
Committee Support	% Members satisfaction	-	63%	76%	70%	70%	70%	70%
Public Participation Service	% Member Satisfaction	_	57%	53%	60%	65%	70%	70%

            Table 2: Programme 2 – Performance Indicators (Source: Parliament of the RSA)

 

Programme 3: Associated Services and Transfers

2.2.10        Programme 3 provides for the facilities and financial support to political parties including leadership, administrative and constituency support. It also provides for transfer payments to entities in Parliament. It comprises the following sub-programmes: Members’ Facilities; Leadership, Administrative and Constituency support to political parties; Transfer to the Parliamentary Budget Office (PBO); Legislative Sector Support; Office Supporting ISDs (OISD).

2.2.11        Performance in respect of this programme will not be measured.

Entities reporting to the Executive Authority

2.2.12        The following entities have from 2021/22 reported directly to the Executive Authority: the PBO; the OISD; the Treasury Advice Office (TAO); and Legislative Sector Support (LSS). They will continue to do so in 2022/23.

 

PART B

3.              Budget Information

3.1            Summary of the 2022/23 Draft Budget

3.3.1         Parliament proposes a budget amount of R2 875 373 billion for 2022/23, and R3 018 735 billion and R3 179 571 billion for 2023/24 and 2024/25 respectively. The budget proposal of R2 875 373 billion for 2022/23 represents an eight per cent increase on the 2021/22 approved budget of R2 656 710 billion. Further, the proposed budget is set to increase by 5.2 per cent over the 2022 Medium Term Expenditure Framework (MTEF). For the proposed 2022/23 draft annual budget of R2 875 373 billion, the majority of the proposed funds will be appropriated to Programme 3: Associated Service (32%) followed by Programme 2: Legislative and Oversight (28%). Programme 1: Administration will receive the smallest share at 24 per cent.

3.3.2         Under Programme 1: Administration, Parliament budgeted for an amount of R697,656 million in 2021/22, increasing to R674,571 million in 2022/23 and to R722,420 million in 2023/24. In 2022/23 Parliament intends spending the bulk of the budget on sub-programme Corporate and Support Services (R575, 183 million), and R90, 410 million and R,978 million on sub-programmes Executive Authority and Office of the Secretary respectively.

3.3.3         In respect of Programme 2: Legislation and Oversight, Parliament budgeted R739,702 million in 2021/22, and intends increasing that allocation to R806,430 million in 2022/23, and to R867,553 million by in 2023/24. In 2022/23 the bulk of the allocation will go towards sub-programme Shared Services (R656 496 million). The NA and the NCOP will receive R49, 468 million and R52 606 million. Sub-Programme Sectoral Parliaments will receive the smallest allocation – R47 860 million.

3.3.4         Programme 3: Associated Services and Transfer Payments received R747,642 million in 2021/22. Parliament intends increasing the allocation to R919,645 million in 2022/23, and to R964,929 million in 2023/24. The bulk of the allocation will be go towards transfers: Political Party Allowances, and remainder to Members Facilities (R365 160 million) and Transfer: PBO (R15 803 million).

Part C

4.              Observations

4.1            As emphasised in previous reports, it is untenable that Parliament must, like national departments, apply to the National Treasury for a share of the national budget. Parliament is a separate arm of state and cannot be expected to rely on the executive for its budget allocation. This reliance has the potential to weaken Parliament’s oversight of the Executive.

4.2            The Committee supports all efforts to increase public participation in Parliament’s activities. Ensuring that more people have access to information about Parliament through television, radio and social media would contribute greatly towards that goal. However, Parliament has failed to convincingly address our concerns about televising Parliament’s business on a pay-to-view channel. While having its own television studio is an exciting development for Parliament, it will have limited value if nothing is done to ensure that its broadcasts are accessible to the majority of citizens. As noted previously, the Committee is concerned that despite plans to allocate a substantial budget to Programme 3 which includes Members Facilities, there are no performance indicators under this programme. This means that it will once again not be measured in 2022/23.

4.3            The Committee again notes that despite our previous recommendations, the APP contains now indicators for measuring the performance of the OISD, TAO and LSS which will report directly to the Executive Authority.

4.4            The Committee is aware that the PBO tabled its own 2021-2024 Business Plan and Budget Estimates in April 2021. The Committee notes with concern that the information has not yet been referred to an oversight committee. This is of concern, as the allocation the PBO receives is a direct transfer from Parliament’s budget and must be accounted for.

4.5            While the Committee welcomes the move to a member-centered performance evaluation system, the detail of how the system will work in practice remains unclear.

 

PART D

5.         Recommendations

The Executive Authority should respond to the following recommendations within 30 days of the adoption of this report by both houses of Parliament.

5.1       The Committee recommends that the challenges around the allocation of Parliament’s budget be addressed as a matter of urgency and with full regard for Parliament’s status as an arm of state, and its constitutional obligation to perform oversight of the executive.

5.2       The Committee recommends that every avenue be pursued to ensure that the vast majority of citizens are able to access information about parliamentary committee meetings and plenaries. Parliamentary meetings should not be aired on pay-to-view channels, but should be broadcasted on the SABC’s platform. The Committee should be provided with quarterly progress reports on the interventions the Parliamentary Communication Service is working on.

5.3       The Committee should receive a detailed brief on the new broadcast studio, particularly how it was funded, its expected impact, and the cost of operating it over the next three years.

5.4       The Committee should be provided with the rationale for having included Members Facilities under Programme 3, and for not having targets under this programme especially in relation to the performance of Members Facilities.

5.5       The Committee recommends that clarity be provided around how the impact of the offices referred to in paragraph 4.3, which are funded, will be measured and where they will account for their expenditure and performance.

5.6       The Committee should be provided with an explanation for the delay in the referral of the PBO’s Business Plan and Budget Estimates. Further, the Executive Authority should ensure that the planning and budget information is referred for processing by the relevant oversight committee so as to ensure that the public funds allocated to the PBO are properly accounted for. The Committee should be kept abreast of progress in this regard.

5.7       The Committee recommends that Parliament’s objectives and strategic goals be aligned to National Development Plan-goals. As 2030 draws nearer, parliamentary committees should be interrogating and reporting on the progress made as far as reaching the NDP goals especially those related to skills development, poverty alleviation, and job creation. Committees would benefit from research in this regard.

5.8       The Committee recommends that it be provided with the detail of the new way of managing performance e.g. more detail around how reliability, usefulness, accessibility and timeliness are measured; how the new method impacts the existing performance management system.

 

 

Report to be considered.