Standing Committee on Appropriations

1. Standing Committee on Appropriations Standing Committee on Appropriations Support Team 25 May 2016

2. Outline • Mandate of SCoA • Defining Oversight • Planning Theme 1 • Planning Theme 2 • Planning Theme 3 • Planning Theme 4 • Planning Theme 5 • Planning Theme 6 • Comment on APP • Conclusion

3. Mandate of the Standing Committee on Appropriations • The Standing Committee on Appropriations (the Committee) was established in terms of the Money Bills Act - • Spending issues; • Amendments to the Division of Revenue Bill, the Appropriation Bill, Supplementary Appropriation Bill and the Adjusted Appropriation Bill; • Recommendations of the Financial and Fiscal Commission (FFC), including those referred to in the Intergovernmental Fiscal Relations Act, 1997 (Act No. 97 of 1997); • Reports on actual expenditure published by the National Treasury (section 32 reports); and • Any other related matters.

4. Defining Oversight • The most widespread definition was coined by Ogul (1976:11) and says: “behaviour by legislators and their staffs, individually or collectively, which results in an impact, intended or not, on bureaucratic behaviour” • Generally, no consensus amongst scholars on precise definition (Olson 2008)

5. Planning Session Theme 1 (1 of 4) • Strategic Planning Session held from 13 to 15 October 2015 • Key Theme 1 • Alignment of spending priorities with the Medium Term Strategic Framework and ensure that spending performance is aligned with predetermined objectives and outcomes • It was important to scrutinise department spending priorities for alignment with the MTSF. Furthermore, it was agreed that spending outcomes should be aligned with the attainment of predetermined objectives • Committee highlighted the need for through interrogation and verification of department’s performance. • Critical in this respect will be the need continuous feedback and responses by departments and state agencies on work undertaken by the Committee in the various outcome areas.

6. Planning Session Theme 1 (2 of 4) • Key Theme 1 • Alignment of spending priorities with the Medium Term Strategic Framework and ensure that spending performance is aligned with predetermined objectives and outcomes • On alignment with the MTSF --- 2016 Committee Appropriation Report tasks the NT and DPME to look into high risk areas in the implementation of the MTSF • Through interrogation and verification of department’s performance– Held hearings with DPME (MPATs and Outcomes), AGSA, OCPO – Did this help our elected representatives? • Critical in this respect will be the need continuous feedback and responses by departments and state agencies on work undertaken by the Committee in the various outcome areas – Requested for responses in invitations

7. Planning Session Theme 1 (3 of 4) • Committee recommendations 2015 MTBPS • Consider ways for managing growth in significant cost drivers such as student support services, meals, accommodation and books; • To benchmark South African higher education funding with comparable countries; • To immediately embark on a comprehensive partnership building drive with key stakeholders in the financial sector to implement innovative ways for funding higher education students; • Together with relevant stakeholders including the leveraging of expertise from AGSA and other stakeholders support higher education institutions most affected by the reprioritisation exercise especially the historically disadvantaged institutions; • Embark on a comprehensive communication drive targeted at students and parents on all aspects pertaining to student funding and possible financing options; and • Immediate support for the National Student Financial Aid Scheme to ensure its readiness for additional resources envisaged for the medium term. • Department of Higher Education and Training and NSFAS ensure the development and implementation of systems linkages with the South African Revenue Service and other stakeholders to assist in the selection of students and in the repayments of loans. • DHET Responses • The leveraging of funds within the post-school system including re-examining the efficacy of SETAs receives attention through increased monitoring, the implementation of the revised Grant Regulations and the development of the new SETA landscape • Key partnerships with the financial sector is in process through the draft plan for funding the “missing middle” higher education students • A comprehensive communication strategy is in process to target students and parents on all aspects pertaining to student funding and possible financing options • NSFAS is positioned to manage additional resources envisaged for the medium term • NSFAS has an agreement with SARS to assist with the repayments of loans • Responses clearly not comprehensive enough ( Risk in responding through presentations)

8. Planning Session Theme 1 (4 of 4) • DBE - 4 May 2016 • Align and enhance budget planning and infrastructure planning function: • The DBE and National Treasury has introduced the performance based assessment which enhances proper planning and budgeting. Further, provinces have through the Human Resources capacitation process, appointed IDMS technical advisors who monitor and advice on Infrastructure Delivery Management Systems(IDMS), which provides guidance on planning, budgetary and delivery of infrastructure. • Enhance data systems, development of indicators and monitoring to ensure that all schools provide nutritious meals: The monitoring tools which have NSNP key indicators are used to monitor the quality and efficiency of the programme in partnership with FUEL, an NGO on Monitoring, Reporting and Response (MRR) to train monitors to improve quality of meals and efficiency of the programme • Ensure that vacant post are filled in a timely manner: • The Department is presently in the process of finalising the reconfiguration of the organisational structure. Once the process has been finalised and the structure approved, the DBE will move expeditiously towards the filling of all vacant posts in the Department.

9. Planning Session Theme 2 • Key Theme 2 • Focused collaboration between Committees of both Houses • It was re-emphasised that joint hearings with portfolio committees on quarterly expenditure performance should result in more concrete joint recommendations– Clashes with other committee programmes – How to make it work? – However, Successful joint hearings with Portfolio Committee on Higher Education and Select Committee on Appropriation • Encourage Portfolio Committees to make recommendations to it on vote allocations/ appropriations as per Section 10 (5) and Section 10 (6) of the Money Bills Act– Encouragement through staff support structures, how to formalise this? • It was highlighted that there should also be more regular engagements with the Finance Committees on cross cutting issues which have a bearing on both revenue and expenditure issues– Not yet…….

11. Planning Session Theme 3 • Key Theme 3 • Ensure proactive and visible oversight • The Committee emphasised the importance of in-year/quarterly engagements with the Auditor-General…….also track progress by departments in addressing matters raised by AGSA in management letters. – Conducted during the quarterly expenditure hearings • To be more proactive, the Committee would engage with key stakeholders in the relevant sectors to identify potential sites for oversight visits. The Committee would also broaden engagements on sites to include stakeholders representing community interest and not just departments – Equal Education, Cosatu, AGSA, still need more innovative ways to fulfil this? • Regular meetings the Finance Ministry on major reforms underway in our budget framework whose effects are often only visible in the medium to long term– Engaged with the OCPO -- A Public Procurement Bill is also being finalised and will be released for comment in the first half of 2016.

13. Planning Session Theme 4 • Key Theme 4 • Broaden public participation • It was stated that the committee should broaden the participation of the public in the budget process through advertisements and press statements in community radio stations and regional newspaper – To this end, an advertisements were published in national, community newspapers, and aired on local stations for all budget milestones • Meetings of the Committee will need to get more media coverage including television and other media platforms. – Need to issue more press statements • Major Innovation – Partnership with International Budget Partnership and Code4SA. The online tool served to provide an opportunity to the public to weigh in on the five biggest increases and five biggest cuts to programmes in the 2016/17 Budget. The online budget tool received 204 submissions

15. Planning Session Theme 5 • Key Theme 5 • Utilise powers conferred by the Money Bills Amendment Procedures and Related Matters Act of 2009 • The Committee agreed that a comprehensive review of the current budgetary framework/process should be undertaken in order to explore ways of strengthening the budgetary role of Parliament – All four Committees to deliberate on this • In addition it was highlighted that the Committee should also focus more on the MTEF allocations and government’s future policy choices which will have a considerable impact on the fiscus. – How? Time constraints but need timeous invitations -- issue invites for 2016 MTBPS now. • In addition it was highlighted that the Committee should also focus more on the MTEF allocations and government’s future policy choices which will have a considerable impact on the fiscus– Engaged with the OCPO -- From April 2016, all routine goods and services will be managed through the gCommerce portal, which is expected to reduce corruption by reducing human intervention and the risk of overriding established protocols.

16. Planning Session Theme 6 • Key Theme 6 • Improving the responsiveness of the Executive to Committee recommendations and requests by refining and strengthening Parliamentary mechanisms for follow-up • It was highlighted that in order to strengthen the accountability of the Executive to the Committee, the Committee should insist on leaner department delegations represented by Minister or Deputy Minister and the Accounting Officer – Committee communicated strong message to non-compliant departments • It was also emphasised that Parliament should improve its follow-up mechanisms with the Executive in terms of recommendations and requests made by Committees through Committee Reports adopted by the House. – It still remains a challenge, Responses through Powerpoints not comprehensive enough

17. Comment on the APP • Vision • An activist and responsive people’s Parliament that improves the quality of life of South Africans and ensures enduring equality in our society. • Mission • A vibrant people’s assembly that intervenes and transforms society and addresses the development challenges of our people; effective oversight over the Executive by strengthening its scrutiny of actions against the needs of South Africans; participation of South Africans in the decision-making processes that affect their lives; a healthy relationship between the three arms of the State, that promotes efficient co-operative governance between the spheres of government, and ensures appropriate links with our region and the world; and an innovative, transformative, effective and efficient parliamentary service and administration that enables Members of Parliament to fulfil their constitutional responsibilities.

18. Conclusion • The oversight of public finances is one of the most important roles Parliament performs on behalf of our citizens and taxpayers. As we pay our taxes we all want to be confident that government spends the money properly and with proper regard to value for money. • The Committee notes budget pressures indicated by departments during the hearings on the Appropriation Bill and the negative effect these pressures might have on the ability to attain Medium Term Strategic Framework (MTSF) and the National Development Plan (NDP) targets. The Committee is of the view that the principle of doing more with less should become the central ethos of departments and public entities as meeting the challenge of radically transforming the economy and the achievement of targets contained in the National Development Plan is a fundamental imperative in efforts to uplift the lives of the poor and vulnerable; and protect the welfare of South Africans.