1. Budgetary Review and Recommendation Report Template Presentation to the Portfolio Committee on Police Mkhethwa Mkhize 12 October 2010

2. 2 Background  Section 77 (3) of the Constitution: –“All money Bills must be considered in accordance with the procedure established by section 75. An Act of Parliament must provide for a procedure to amend money Bills before Parliament”.  Birth: The Money Bills Amendment Procedure and Related Matters Act, No. 9 of 2009 (the Act).  Specifically: Section 5 of the Act.

3. 3 Background… Section 5 of the Act provides that:  The National Assembly, through its committees, must annually assess the performance of each national department.  Committees must annually submit BRRR for tabling in the National Assembly.  BRRR to be submitted to the Finance Minister and Cabinet Member of a Vote.

4. 4 Cover Page [Template]  Portfolio Committee on Police  Budgetary Review and Recommendation Report  Calendar Year  Name of the Chairperson

5. 5 Content Page [Template]  Introduction  Strategic Priorities and Objectives  Analysis of Strategic and Operational Plans  Analysis of Annual Report and Financial Statements  Consideration of SCOPA’s Reports  Consideration of Other Information  Conclusion  Recommendations

6. 6 Introduction The Committee:  The Mandate of the Committee  Methodology used to compile a BRRR The Department:  The Mandate of the Department, including its vision and mission statement

7. 7 Strategic Priorities and Objectives  Recall that Performance Assessment comprises of: –Performance measurement, and –Performance evaluation.  Strategic priorities –a summary of strategic priorities, with a view to use them as a threshold level.  Measurable objectives –a summary of measurable objectives, with a view to use them as a threshold level.

8. 8 Analysis of Strategic and Operational Plans  Evaluate strategic and operational plans against outcomes of the Department (service delivery performance).  The Committee may invite inputs and/or evidence from the Department and other stakeholders.

9. 9 Analysis of Section 32 Reports  Section 32 of the Public Finance Management Act provides for the publishing of reports on the state of a vote’s budget.  Publishable by National Treasury.  Spending patterns (identifying under- or over- spending).  Consider Spending Trend Analysis (STA) by National Treasury (for committees’ purposes only –not for public consumption).

10. 10 Section 32 reports…  STA includes spending trend per budget vote.  STA provides analysis on a number of variables.  STA’s variables are provided per Dept’s programme and sub-programme.  May supplement this section with ST on Appropriations’ reports on quarterly spending by certain departments.

11. 11 Analysis of Annual Report and Financial Statements  Annual report must be tabled, latest, at the end of September.  In October (or earlier), Committees reports on annual report and financial statements.  This process coincides with BRRR.  Recommended: BRRR should subsume a report on annual report and financial statements.

12. 12 Annual report and financial statements…  The success on the analysis of the annual report and financial statements in highly dependent on the timely submission of these source documents.  Advice: Ministries are encouraged to submit these documents as early as possible. It is recommended that, in future, the submission date be at the end of August (not September) or earlier.

13. 13 SCOPA’s Reports  The Act provides that committees must consider SCOPA’s reports on Departments’ annual reports.  To verify existence of: –Fruitless and wasteful expenditure, –Irregular expenditure, –Over-spending, and –Unauthorised expenditure.  The Committee may invite additional comments from SCOPA.

14. 14 SCOPA’s Reports…  Challenge: Not all annual reports may have been reported on by SCOPA for the BRRR process -due to the workload.  Advice: For SCOPA to prioritise departments’ reports and consider entities at a later stage (this is another reason for the submission date of annual reports to be changed to August as per recommendation on slide 12 above).

15. 15 Other Sources of Information Other useful sources of information may include:  The State-of-the-Nation Address;  Reports of the NPC and Ministry: Performance Monitoring & Evaluation;  Reports of the Auditor-General South Africa;  Recommendations of the Financial and Fiscal Commission;  Fact-finding (or oversight) reports;  Prior BRRRs;  Reports on Budget Votes.

16. 16 Committee’s Observations  The Committee to summarise key findings in a coherent and logical format.  Key findings to be based on analyses made above (not unacceptable sources).

17. 17 Conclusion  Based on its observations (that is the achievement of strategic priorities & objectives of the Department and the efficient, effective and economical use of both monetary and non-monetary resources), the Committee should make a clear statement on whether it is satisfied with the department’s service delivery performance or not.

18. 18 Recommendations  The content of the recommendations should conform to: –The Constitution of the RSA. –The principle of separation of powers. –The principle of cooperative governance.

19. 19 Recommendations… Equally important, recommendations should be:  Clear –Who they are directed to –What action is expected  Practical –Reasonable/achievable action is expected.  With timeframes –Realistic timeframes.

20. 20 THE END Thank you! Mkhethwa Mkhize