STRATEGIC PLANS, BUDGETS AND ANNUAL REPORTS Presentation to Portfolio Committee on Arts and Culture 11 March 2008

Constitutional Powers s55(2) – sets out the powers of the National Assembly in relation to the Executive: (2) The National Assembly must provide for mechanisms— (a) to ensure that all executive organs of state in the national sphere of government are accountable to it; and (b) to maintain oversight of— (i) the exercise of national executive authority, including the implementation of legislation; and (ii) any organ of state.

Constitutional Powers 2 s42(3) give the National Assembly the power to scrutinise and oversee executive action. S92(2 &3) compels executive members to account to Parliament regularly: (2) Members of the Cabinet are accountable collectively and individually to Parliament for the exercise of their powers and the performance of their functions. (3) Members of the Cabinet must— (a) act in accordance with the Constitution; andthe Constitution (b) provide Parliament with full and regular reports concerning matters under their control.

Challenge The challenge for Portfolio Committees is that they must hold departments and their entities to account using annual reports, budget documents and strategic plans.

Key Policy Issues The Minister is responsible for policy matters and outcomes while the head official (DG) is responsible for outputs and implementation The Minister seeks parliamentary approval and adoption of the department’s budget. The DG is responsible for the management of the implementation of the Budget. National Treasury is responsible for financial and fiscal matters of government. In addition to putting in place legislation that prescribes the norms and standards (PFMA, MFMA), it is also responsible for monitoring and enforcing these norms.

Strategic Plan This sets out the department’s strategic plans for the immediate and future financial years i.e. it is forward looking. Objectives and programmes must relate to the mandate of the department There must be clear achievable objectives. The plan must include the details of the resources that are at their disposal in order to achieve the objectives. These resources include financial, strategic and human resources. There must be defined time frames attached to the objectives

Estimates of National Expenditure This is tabled as part of the overall budgetary allocation by the Minister of Finance. Each Vote includes the amounts that are allocated to each department as well as the programme allocations There is a purpose and objectives and measures for each programme. In addition to the current budgetary allocation, the ENE looks at previous expenditure trends as well as projected expenditure based on the programme objectives i.e. it looks both forward and backwards.

Annual Report Section 40(1)(d) & 55(1)(d) of PFMA The Accounting Officer must submit within five months of the end of the financial year to the Minister responsible for that Department an Annual Report Section 65(1) of PFMA the Minister responsible for a department must table the annual report in the relevant legislature within one month after the Minister received the annual report. Section 65(2)(a) of PFMA a Minister who fails to table an annual report for an entity by 30 September (6 months after year end) must table a written explanation in the legislature setting out the reasons why the report was not tabled and indicating when the report will be tabled

Annual Report 2 The annual report is dealt with after the fact i.e. it is backward looking. It is tabled in Parliament six months after the end of the financial year. The report should include the detailed achievement of each programme. The financial statements must be sent to the Auditor-General and this along with the A-G’s audit report is included in the Annual Report. These reports are referred to Scopa as well as the relevant Portfolio Committee.

Annual Reports: Closing the Accountability Loop Departments produce strategic plans setting out performance measures and targets through the budget the executive indicates what funds are required to implement strategic plans. The legislatures approve the budget, and so appropriate funds for the implementation of the strategic plans. The annual reports indicate how the executive has used appropriated funds to implement strategic plans.

Questions that should be asked Is the Strategic Plan in line with government’s overall objectives? Do the programmes and objectives relate to the mandate of the department? Are the objectives achievable within the set time-frames? Are there sufficient resources allocated to achieve the objectives? What are the details of these resources in terms of human capital, fixed assets and are there any additional requirements i.e. vacancies? Does the strategic Plan and Estimates of National Expenditure reflect the same goals? Is there continuity in terms of planning? Have concerns that were possibly raised in the previous Annual Report been addressed?

Thank you