2 nd African Network of Parliamentary Budget Offices: 2017 PBO Governance Structures & International Experiences Day 2: Session 1 Parliamentary Budget Office (PBO) RSA 8/17/2017 1
Legislative Framework Section 77 of the Constitution Section 42(3) of the Constitution Money Bills The National Assembly is elected to represent the people and to ensure government Money Bills by the people under the Constitution. It does this by choosing 77. (1) A Bill is a money Bill if it — the President, by (a) appropriates money; providing a national forum for public consideration of issues, by (b) imposes national taxes, levies, duties or surcharges; (c) abolishes or reduces, or grants exemptions from, any national taxes, passing legislation levies, duties or surcharges; or and by scrutinizing and overseeing executive. (d) authorises direct charges against the National Revenue Fund, except a Bill envisaged in section 214 authorising direct charges. 8/17/2017 2 (3) All money Bills must be considered in accordance with the
Legislative Mandate • Money Bills Amendment Procedure and Related Matters Act, no 109 of 2009, Money Bills Act • The Act gives effect to sections 42(3) and 77 of the Constitution Budget “rubber” -stamping Budget legislature amending Money Bills Act legislature Adopt or reject the budget tabled Money Bills Act transitioned Parliament of the Republic of South Africa from being a budget “rubber - stamping” legislature to a budget influencing & amending legislature. The Parliamentary Budget Office provides the required technical capacity to give effect to the fiscal oversight capacity of 8/17/2017 3 Parliament of the Executive.
Constitution Section 77 : Money Bills Section 42(3): The National Assembly must scrutinize & oversee Act of Parliament Executive action. Money Bills Amendment Procedure & Related Matters Act, no 09 of 2009 Core & Primary legislated Section 4 : establishes & stipulates the legislated clients of the PBO RSA functions of the Finance & Appropriations Committees of Parliament. 4 x Committees: 2 Committees in the National Assembly & 2 Committees in the National Council of Provinces Parliamentary Budget Office In-house technical scrutinizing agent/office of Parliament established by Parliament to enhance the technical fiscal 8/17/2017 4 capacity of Parliament over the Executive.
Parliamentary Committees serviced by the PBO RSA Other Parliamentary Committees Standing Committee Select Committee on on Finance Finance Legislated Committees Standing Committee Select Committee on on Appropriations Appropriations Satisfied customers= value- adding support 8/17/2017 5
Reporting & Accountability Lines Executive Authority of Parliament Speaker of the National Assembly (NA) & Chairperson of the National Council of Provinces (NCOP) PBO Advisory Board NA & NCOP House-chairpersons & the Chairpersons of the Finance & Appropriations Committees in both Houses of Parliament: 6 Members Financial accountability re allocated budget Director of the PBO Secretary to Parliament Allocates funds (budget allocation) to the PBO 8/17/2017 6
Orgasational & Functional Design Money Bills Act Core clients: Section 4 of the Act: establishes & stipulates functions of the Finance & Appropriations Committees of Parliament Section 15(1) establishes the PBO and sub-section 15(2) establishes stipulates the functions /mandate of the Office Director of the PBO RSA Position established by 15(1) & 15(5) of the Act Head of the PBO Provides Strategic Leadership on technical and administrative matters Economic Analysis Policy Analysis Finance Analysis Corporate Services Deputy Director & 3 staff Deputy Director & Analysts Deputy Director & Analysts Analysts 8/17/2017 7
Service Delivery Workflow Method Director PBO NA and NCOP Finance and Committee Chairpersons Parliamentary Budget Office Appropriations Committees Parliamentary Budget Office Director PBO considers Submit formal written request specific requests from Consideration of money Bills Formulate Terms of Reference to the Director of the PBO RSA Committees Formal written Multi-party Committee Identify acknowledgement letter Research & Analyse specific analysis and research transmitted by Director to required for decision making Committee Chair Independent, objective and professional advice and analysis to Parliament on matters related to Submit findings to Committee (electronically &/or the budget and other Money Bills presentations) Product Range Services Presents findings to 1. Budget Analysis Reports The PBO provides Committees • 1.1 Main Budget Vote Fiscal, 1.2 Medium Term Budget Policy Statement • Economic, Build capacity in Committees (MTBPS) • Policy advisory services through presentations & 2. Adjusted Estimates of National Expenditure discussions analysis reports Workforce 3. Briefs: Economic & Fiscal Carry out further research for Director 4. Policy Monitoring reports Committee as so directed 5. Demand-driven special reports coming from 3 x Deputy Directors/Senior Analysts 8/17/2017 8 Committees 5 x Analysts 6. Forecast robustness report
Other important considerations Build credibility through Standard Relationship with External Capacity building Webpage/Website the work produced by Operating Parliamentary Stakeholder interventions the Office Procedures Administration Relations Services Provision of Value-adding & Development Strong working Domestic/national Continuous To communicate the credible reports of standard relationship exists capacitation of PBO work of the PBO to operating between the Director Build Relations with for upskilling the public, interested Be a Trusted source of procedures, of the PBO & key institutions such purposes & to keep parties authority process flows, Secretary to as National Treasury, abreast of current performance Parliament & All Performance development (not left Branding & Marketing Evidence-based research & standards etc. business units of Monitoring & behind) of the Office and the advisory services is key is key Parliament Evaluations work of the office department, Central MP’s should be Decode the technical jargon Cooperation with our Bank, Statistical capacitated through Peer-review in a language MP’s can fellow Researchers collecting agency, Parliaments Members mechanism understand and Content Advisors, Auditor General, Training unit, study Committee support Fiscal Commissions tours & bench- Bench-marking tool Be prepared to take colleagues is marking exercises unit from other criticisms coming from MP’s important International & through the offices/researchers positively Establish strong technical work relations with other Gauge & assess the service PBOs & other value- delivery environment to adding stakeholders 8/17/2017 9 improve your service
ACCOUNTABILITY & COMPLIANCE ENVIRONMENT F INANCIAL B UDGETING & PBO RSA S TRATEGIC P ERFORMANCE M ONITORING & A UDITING PBO A NNUAL M ANAGEMENT OF F INANCIAL P LAN & A NNUAL R EPORTING E VALUATION R EPORT P ARLIAMENT A CT P ERFORMANCE P LAN MANAGEMENT PBO RSA OPERATES PBO B UDGET ALIGNED TO THE M ONEY E FFECTED M ONTHLY BY P ERFORMED M ONTHLY A UDITED BY P RODUCED ANNUALLY BY R EQUIREMENTS B ILLS A CT & THE M AIN THE PBO B Y P ARLIAMENTS P ARLIAMENTS INTERNAL THE PBO SINCE ENTIRELY WITHIN THE S TRATEGIC P LAN OF P ERFORMANCE 2014/2015 FY PRESCRIPTS OF THE SUBMITTED TO AUDIT DIVISION FMPA P ARLIAMENTARY P ARLIAMENT A LL P ERFORMANCE M ANAGEMENT U NIT O UTPUTS ARE A UDITED BY THE O FFICE I N C OMPLIANCE WITH ADMINISTRATION FOR M AIN P URPOSE Q UALITY A SSURANCE OF THE A UDITOR THE M ONEY B ILLS A CT INCORPORATION IN THE TRANSMITTED TO MAIN & OVERALL T O SYSTEMATICALLY P ARLIAMENTS P ERFORMED BY G ENERAL S OUTH A FRICA B UDGET OF P ARLIAMENT P ERFORMANCE U NIT P ARLIAMENTS OUTLINE THE SERVICE AS PART OF THE OVERALL AUDIT OF P ARLIAMENT DELIVERY ENVIRONMENT B UDGET ALLOCATION IS OF THE PBO FROM P ARLIAMENT C ONTAINS A LL S INGLE FY B UDGET P ERFORMANCE OUTPUTS A IMED AT SERVICING ALLOCATION OUR CLIENT SCM: PROCUREMENT P ARLIAMENTARY A SSETS & L IABILITIES & C OMMITTEES D EVELOPED SINCE 2014 OTHER FINANCIAL & REVISED A NNUALLY MATTERS 8/17/2017 10
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