BRIEFING TO THE JOINT STANDING COMMITTEE ON
Description: BRIEFING TO THE JOINT STANDING COMMITTEE ON FINANCIAL MANAGEMENT OF PARLIAMENT CONTENTS Review of the FMPPLA and Regulations Organisational re-alignment project 2 REVIEW OF THE FMPPLA AND REGULATIONS 3 THE FINANCIAL MANAGEMENT OF PARLIAMENT
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slide1. BRIEFING TO THE JOINT STANDING COMMITTEE ON FINANCIAL MANAGEMENT OF PARLIAMENT<br>
slide2. CONTENTS Review of the FMPPLA and Regulations
Organisational re-alignment project 2<br>
slide3. REVIEW OF THE FMPPLA AND REGULATIONS 3<br>
slide4. THE FINANCIAL MANAGEMENT OF PARLIAMENT OF PROVINCIAL LEGISLATURES ACT
Following the adoption of the Financial Management of Parliament of Provincial Legislatures Act (the Act) 2009, regulations were developed for party funding, cash management, investment and debtor management. The SCM policy was converted into regulation format. The outstanding regulations provided for in section 65 were also drafted.
These regulations were discussed at sector workshops with CFOs and legal advisers, and inputs from provincial legislatures were considered.
Concerns were raised that some concerns originate from the Act itself. The Speakers Forum then resolved that the Act be reviewed and thereafter the regulations be concluded following the amendments– a process which will be undertaken in the Seventh Parliament. 4<br>
slide5. PARLIAMENT’S BUDGET VOTE
Parliament is a distinct arm of the State and its budget is therefore developed on this basis. This nevertheless include interactions between Parliament and the National Treasury each year.
Previously, Parliament’s budget was discussed in a multi-party subcommittee of the Joint Rules Committee. This was structure then replaced by the Governance Oversight Authority (POA). The POA was later superseded when the Financial Management of Parliament of Provincial Legislatures Act (the Act) was adopted in 2009. While the Act strengthened the post facto oversight of Parliament’s budget, it did not prescribe a process or structure to draft Parliament’s budget vote.
Parliament is now in the process of establishing a special forum whose mandate will include scrutiny over the development of Parliament’s budget vote. Proposals will include the regularisation of the engagements between Parliament and the Treasury. 5<br>
slide6. THE BUDGET PROCEDURE AND THE MONEY BILLS AND RELATED MATTERS ACT
The Money Bills Amendment Procedure and Related Matters Act, (2009), (the Act) was passed in 2009. The Act gave effect to section 77(3) of the Constitution. Owing to technical challenges, Parliament passed the Money Bills and Related Matters Amendment Bill in 2019.
Following the promulgation of the Act, Parliament updated its rules and established a Parliamentary Budget Office (PBO) to facilitate implementation. To date, however, the Act has not been fully applied. One of the reasons for this is that a number of processes in the Act require the rules to be expanded The Subcommittee on the Review of National Assembly Rules has since drafted rules in this regard.
Further political consultations will be undertaken on the draft rules with a view to concluding the matter in the Sixth Parliament. 6<br>
slide7. FMPPLA MECHANISMS FOR APPROPRIATION/ADJUSTMENT OF BUDGET VOTE 2 (PARLIAMENT)
Section 16 (d) requires that Parliament develops a budget and motivate its use for the funds required. This requires Parliament to provide explanations.
Section (17) (2) (b-c) indicate that the budget and supplementary budget must be prepared a month before submission to NT.
Section (18) (3) states that “Any revision of an appropriation or approval in terms of subsection (1)(b) must be approved by Parliament.”
Parliament can therefore not approved adjustments that have adverse effects to Its Constitutional Mandate. 7<br>
slide8. MONEY BILLS AMENDMENT PROCEDURE AND RELATED MATTERS ACT MECHANISMS FOR APPROPRIATION OF BUDGET VOTE 2 (PARLIAMENT)
Section 8 (1) requires Parliament to refer the fiscal framework and revenue proposals to its finance committees of both houses.
Section 8 (3) directs committees to report provide a report to their respective houses on the fiscal framework and revenue proposals.
Section 8 (4) directs to report to include a clear statement of either acceptance or amendment of the fiscal framework and revenue proposals.
The statement to ensure appropriate balance between revenue, expenditure and borrowing, debt level, debt interest and costs are reasonable. S8 (5). 8<br>
slide9. ORGANISATIONAL RE-ALIGNMENT<br>
slide10. PROJECT STAGES & ROLL-OUT<br>
slide11. ORGANISATIONAL REALIGNMENT PROJECT STAGES PLAN ASSESS DESIGN IMPLEMENT EMBED 1 3 5 2 4 PROJECT CHARTER
Project scope and deliverables
Project Plan / Schedule
Project governance
Budget
Roles and accountabilities DESIGN WORKSHOPS
Capability mapping / functional allocations
Macro-structure
Divisional structures
Information systems
Locations
Suppliers
Management system CLOSURE & INTEGRATION
Validate vision
Review and close project
Assess and act on feedback
Continually train and develop
Reinforce and reward
Reassess, learn, improve
Benefits realisation AS-IS ANALYSIS
Visionary interview with the STP
As-Is analysis / assessment
Feedback presentation
7th Parliament Business Model
Design principles IMPLEMENTATION PLAN
Implement new design
Develop Post-Project Action Plan
Gather feedback
Train and educate
Develop KPIs
Measure performance<br>
slide12. BUSINESS MODEL<br>
slide13. 7th PARLIAMENT BUSINESS MODEL<br>
slide14. DESIGN PRINCIPLES<br>
slide15. DESIGN PRINCIPLES 1 2 3 4 5 6 Target (To-Be) Operating Model<br>
slide16. 16 DESIGN PRINCIPLE 1<br>
slide17. 17 DESIGN PRINCIPLE 2<br>
slide18. 18 DESIGN PRINCIPLE 3<br>
slide19. 19 DESIGN PRINCIPLE 4<br>
slide20. 20 DESIGN PRINCIPLE 5<br>
slide21. 21 DESIGN PRINCIPLE 6<br>
slide22. FUNCTIONAL MODEL<br>
slide23. NA COMMITTEES NCOP External Stakeholders Table Admin, Procedure, and Committee Support COMMITTEES Table Admin, Procedure, and Committee Support Oversight
Law Making
Public Participation
Cooperative Government
International Engagements Macro Functional Model<br>
slide24. PROJECT SCHEDULE<br>
slide25. ORGANISATIONAL REALIGNMENT PROJECT PLAN<br>
slide26. ORGANISATIONAL REALIGNMENT PROJECT PLAN<br>
slide27. Recommendations It is recommended that the Committee:
Notes the progress made and the issues raised on Budget Vote 2
Approves the deferral of the FMPPLA amendment and finalisation of regulations to the 7th Parliament 27<br>
slide2. CONTENTS Review of the FMPPLA and Regulations
Organisational re-alignment project 2<br>
slide3. REVIEW OF THE FMPPLA AND REGULATIONS 3<br>
slide4. THE FINANCIAL MANAGEMENT OF PARLIAMENT OF PROVINCIAL LEGISLATURES ACT
Following the adoption of the Financial Management of Parliament of Provincial Legislatures Act (the Act) 2009, regulations were developed for party funding, cash management, investment and debtor management. The SCM policy was converted into regulation format. The outstanding regulations provided for in section 65 were also drafted.
These regulations were discussed at sector workshops with CFOs and legal advisers, and inputs from provincial legislatures were considered.
Concerns were raised that some concerns originate from the Act itself. The Speakers Forum then resolved that the Act be reviewed and thereafter the regulations be concluded following the amendments– a process which will be undertaken in the Seventh Parliament. 4<br>
slide5. PARLIAMENT’S BUDGET VOTE
Parliament is a distinct arm of the State and its budget is therefore developed on this basis. This nevertheless include interactions between Parliament and the National Treasury each year.
Previously, Parliament’s budget was discussed in a multi-party subcommittee of the Joint Rules Committee. This was structure then replaced by the Governance Oversight Authority (POA). The POA was later superseded when the Financial Management of Parliament of Provincial Legislatures Act (the Act) was adopted in 2009. While the Act strengthened the post facto oversight of Parliament’s budget, it did not prescribe a process or structure to draft Parliament’s budget vote.
Parliament is now in the process of establishing a special forum whose mandate will include scrutiny over the development of Parliament’s budget vote. Proposals will include the regularisation of the engagements between Parliament and the Treasury. 5<br>
slide6. THE BUDGET PROCEDURE AND THE MONEY BILLS AND RELATED MATTERS ACT
The Money Bills Amendment Procedure and Related Matters Act, (2009), (the Act) was passed in 2009. The Act gave effect to section 77(3) of the Constitution. Owing to technical challenges, Parliament passed the Money Bills and Related Matters Amendment Bill in 2019.
Following the promulgation of the Act, Parliament updated its rules and established a Parliamentary Budget Office (PBO) to facilitate implementation. To date, however, the Act has not been fully applied. One of the reasons for this is that a number of processes in the Act require the rules to be expanded The Subcommittee on the Review of National Assembly Rules has since drafted rules in this regard.
Further political consultations will be undertaken on the draft rules with a view to concluding the matter in the Sixth Parliament. 6<br>
slide7. FMPPLA MECHANISMS FOR APPROPRIATION/ADJUSTMENT OF BUDGET VOTE 2 (PARLIAMENT)
Section 16 (d) requires that Parliament develops a budget and motivate its use for the funds required. This requires Parliament to provide explanations.
Section (17) (2) (b-c) indicate that the budget and supplementary budget must be prepared a month before submission to NT.
Section (18) (3) states that “Any revision of an appropriation or approval in terms of subsection (1)(b) must be approved by Parliament.”
Parliament can therefore not approved adjustments that have adverse effects to Its Constitutional Mandate. 7<br>
slide8. MONEY BILLS AMENDMENT PROCEDURE AND RELATED MATTERS ACT MECHANISMS FOR APPROPRIATION OF BUDGET VOTE 2 (PARLIAMENT)
Section 8 (1) requires Parliament to refer the fiscal framework and revenue proposals to its finance committees of both houses.
Section 8 (3) directs committees to report provide a report to their respective houses on the fiscal framework and revenue proposals.
Section 8 (4) directs to report to include a clear statement of either acceptance or amendment of the fiscal framework and revenue proposals.
The statement to ensure appropriate balance between revenue, expenditure and borrowing, debt level, debt interest and costs are reasonable. S8 (5). 8<br>
slide9. ORGANISATIONAL RE-ALIGNMENT<br>
slide10. PROJECT STAGES & ROLL-OUT<br>
slide11. ORGANISATIONAL REALIGNMENT PROJECT STAGES PLAN ASSESS DESIGN IMPLEMENT EMBED 1 3 5 2 4 PROJECT CHARTER
Project scope and deliverables
Project Plan / Schedule
Project governance
Budget
Roles and accountabilities DESIGN WORKSHOPS
Capability mapping / functional allocations
Macro-structure
Divisional structures
Information systems
Locations
Suppliers
Management system CLOSURE & INTEGRATION
Validate vision
Review and close project
Assess and act on feedback
Continually train and develop
Reinforce and reward
Reassess, learn, improve
Benefits realisation AS-IS ANALYSIS
Visionary interview with the STP
As-Is analysis / assessment
Feedback presentation
7th Parliament Business Model
Design principles IMPLEMENTATION PLAN
Implement new design
Develop Post-Project Action Plan
Gather feedback
Train and educate
Develop KPIs
Measure performance<br>
slide12. BUSINESS MODEL<br>
slide13. 7th PARLIAMENT BUSINESS MODEL<br>
slide14. DESIGN PRINCIPLES<br>
slide15. DESIGN PRINCIPLES 1 2 3 4 5 6 Target (To-Be) Operating Model<br>
slide16. 16 DESIGN PRINCIPLE 1<br>
slide17. 17 DESIGN PRINCIPLE 2<br>
slide18. 18 DESIGN PRINCIPLE 3<br>
slide19. 19 DESIGN PRINCIPLE 4<br>
slide20. 20 DESIGN PRINCIPLE 5<br>
slide21. 21 DESIGN PRINCIPLE 6<br>
slide22. FUNCTIONAL MODEL<br>
slide23. NA COMMITTEES NCOP External Stakeholders Table Admin, Procedure, and Committee Support COMMITTEES Table Admin, Procedure, and Committee Support Oversight
Law Making
Public Participation
Cooperative Government
International Engagements Macro Functional Model<br>
slide24. PROJECT SCHEDULE<br>
slide25. ORGANISATIONAL REALIGNMENT PROJECT PLAN<br>
slide26. ORGANISATIONAL REALIGNMENT PROJECT PLAN<br>
slide27. Recommendations It is recommended that the Committee:
Notes the progress made and the issues raised on Budget Vote 2
Approves the deferral of the FMPPLA amendment and finalisation of regulations to the 7th Parliament 27<br>