Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698835272719.pdf (South Africa)
The Secretary to Parliament presents The Annual Report 2010 - 2011 ANNUAL REPORT 2010-2011 Parliament Of the rePublic Of SOuth africa Our Vision: To build an effective people’s Parliament that is responsive to the needs of the people and that is driven by the ideal of realising a better quality of life for all the people of South Africa.
Our mission: As the freely elected representatives of the people of South Africa, our mission is to represent, and act as a voice of the people, in fulfilling our constitutional functions of passing laws and overseeing executive action.
4 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA Presiding Officers of Parliament of the republic of South africa Mr MV Sisulu Speaker National Assembly Mr MJ Mahlangu Chairperson National Council of Provinces Ms NC Mfeketo Deputy Speaker National Assembly Ms TC Memela Deputy Chairperson National Council of Provinces annual rePOrt 2010/2011 5 foreword by the Secretary to Parliament This was followed by the Improvement of the Financial Management Environment of Parliament project to support and enhance the financial management function and ensure that a financial management culture, consistent with the values of Parliament and the Act, is entrenched.
This project commenced in November 2010 and places more emphasis on Planning and Budgeting, Supply Chain Management and Reporting and Auditing.
I am pleased to present to the Speaker of the National Assembly and the Chairperson An ICT infrastructure upgrade was of the National Council of Provinces the undertaken to ensure integration, maximum Annual Report of Parliament for the year mobility and better utilisation of the server ending 31 March 2011. infrastructure, network stability, 100% availability and high-speed performance.
The fourth democratic Parliament, Parliament now boasts a secure high inaugurated in 2009, lays emphasis on availability and high performance network.
strengthening the oversight function, increasing public involvement and As the business of Parliament becomes more participation, strengthening cooperative reliant on ICT systems, it became vital to government, widening the role of have a system that replicates data off-site so Parliament in international cooperation and that the parliament information is protected participation and continuing to build an against disaster scenarios.

In order to ensure effective and efficient people’s Parliament.
business continuity a disaster recovery These strategic objectives inform the system was installed.

The disaster recovery initiatives and projects as reflected in the system will be expanded and improved in Strategic Plan of Parliament 2009-2014, 2011. which was tabled in August 2010.

A decision was undertaken to upgrade This year saw the establishment of the the National Council of Provinces Chamber Unit on Chapter 9 Institutions in the Office to ensure that the Chamber is optimally of the Speaker.
This Unit will co-ordinate supported and equipped to run effectively.

Parliament’s interactions with these A similar project will be undertaken for the institutions.

National Assembly Chamber.

The process to implement the Financial A project to develop the Public Participation Management of Parliament Act (2009) was concluded during this financial year.

Model to improve public involvement and participation is well under way.
PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA The NCOP’s Taking Parliament to the People two interventions form part of an overall took place in November 2010 in Qwaqwa, restructuring of the administration during Free State, and was attended by 57 000 this term of Parliament.

people.

This Annual Report reflects on the Preparations to implement the Money Bills achievements made in the 2nd year of Amendment and Related Procedures Act implementation of the Strategic Plan for are in progress.
The Act provides for, among the 4th Parliament.

It is aligned with the others, the establishment of the Budget Medium-Term Expenditure Framework for Office.

As part of this, Parliament undertook reporting period, and the direction set in the study tours in Kenya, Germany and Sweden Policy Imperatives as tabled in Parliament.

in Dec 2010 and Japan and Korea in January 2011 to learn about the establishment and functioning of a parliamentary budget office.
As part of putting in place mechanisms to strengthen international relations capacity, the International Relations Section was ZA Dingani elevated to the level of Division.

Secretary to Parliament The year ahead will see us integrating the key functions of planning, budgeting, performance reporting and improvement into one strategic function to derive benefits and value not available from managing them separately.
The project aimed at improving efficiency in the services provided to Members and Committees by splitting the current Legislation and Oversight Division into two separate Divisions is expected to be completed by the end of 2011.

These table of contents PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA Foreword by the Secretary of Parliament I.

Vote Performance STRATEGIC OBjECTIVE 3: TO BUILD AN EFFECTIVE AND EFFICIENT INSTITUTION II.
Programme 1: Administration STRATEGIC OBjECTIVE 1: TO BUILD A qUALITy PROCESS OF SCRUTINISING AND OVERSEEING GOVERNMENT’S ACTION III.

Programme 2: Legislation and Oversight STRATEGIC OBjECTIVE 2: TO BUILD A PEOPLE’S PARLIAMENT THAT IS RESPONSIVE TO THE NEEDS OF ALL THE PEOPLE OF SA IV.
Programme 3: Public and International Participation STRATEGIC OBjECTIVE 3: TO BUILD AN EFFECTIVE AND EFFICIENT INSTITUTION V. Programme 4: Members’ Facilities STRATEGIC OBjECTIVE 3: TO BUILD AN EFFECTIVE AND EFFICIENT INSTITUTION VI.
Programme 5: Associated Services PAGE 11 12 18 36 44 46 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA Human Resource Report Financial Statements • • • • • • • • • • • Report of the Audit Committee Report of the Auditor-General Accounting Officer’s Report Appropriation Statement for the year ended 31 March 2011 Notes to the Appropriation Statement for the year ended 31 March 2011 Statement of Financial Performance for the year ended 31 March 2011 Statement of Financial Position as at 31 March 2011 Statement of Changes in Net Assets for the year ended 31 March 2011 Cash Flow Statement for the year ended 31 March 2011 Statement of Accounting Policies and Related Matters for the year ended 31 March 2011 Notes to Annual Financial Statements for the year ended 31 March 2011 49 61 64 70 78 89 90 91 92 93 94 110 1.
VOte PerfOrmance PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA 1.
VOte PerfOrmance • Improvement of support provided to Parliamentary Committees • Enhance the role of Parliament in International Relations • Develop a Public Participation model for Parliament 1.1 Aim of the Vote The aim of the Vote is to provide the support services required by Parliament to fulfil its constitutional mandate, to assist political parties represented in Parliament in securing administrative support and servicing constituents, and to provide Members of Parliament with the necessary facilities.
1.2.

Programme and strategic objectives This annual report indicates achievements of 5 strategic objectives of Parliament as provided through the programmes reflected in the Estimates of National Expenditure (ENE) - Vote 2.
It is presented to reflect the strategic priorities of Parliament for this financial year, which are the following:- • Effective and efficient parliamentary services • Effective compliance and monitoring of implementation of policies and the Financial Management of Parliament Act • Establishment of the Office of Institutions Supporting Democracy • Improvement of Financial Management Environment • Establishment of Oversight Mechanism Structures PrOgramme 1: adminiStratiOn 12 annual rePOrt 2010/2011 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA PrOgramme 1: adminiStratiOn Purpose: To provide policy and strategic leadership to Parliament, overall management, administration and support services to the Executive Authority, Members of Parliament, management and employees of Parliament.
Administration consists of the Office of the Speaker of the National Assembly, Office of the Chairperson of the National Council of Provinces, Office of the Secretary to Parliament, Corporate Services, and Institutional Support Services subprogrammes.

Its activities include policy direction by the Executive Authority, which is the Speaker of the National Assembly and the Chairperson of the National Council of Provinces acting jointly.
The Office of the Secretary to Parliament provides centralized support services to Parliament.

Outcome: Enhanced image and positioning of Parliament as a respected premier institution of the country Strategic Objectives To build an effective and efficient institution by restructuring the administration to be in line with the programmes and operations of Parliament, establishing policy-based committees by 2011-12 and capacitating Members of Parliament by 2014.
Programme Outputs In ensuring effective and efficient functioning of Parliamentary Services during this financial year the following structures and services were provided:- Reviewed the business process of internal printing unit that resulted in the reduction of cost.

Established the Supply Chain Management Office with the intention of mainstreaming procurement shared service.
The approved organisational structure of the Office of Institutions Supporting Democracy has been populated and started with the processes of employee placement.

Conducted an assessment of the needs and challenges faced by the Pan-African Parliament.

Compliance and transparency Disclosure of Members’ Interests completed and adopted by the Joint Committee on Ethics and Members’ Interests.

annual rePOrt 2010/2011 13 Conducted workshops on the Code for Members of the Eastern Cape Legislature.
were put in place.

Conducted office ergonomic risk assessment.

Followed up on the findings of the Auditor-General in respect of non- disclosure of directorships by Employees, and report was finalised and workshops conducted for employees who did not fully comply.

Employees’ Wellness Programme Trained 220 LOD employees and SHE Compliance Officers in level one first aid.

Oriented and inducted new employees on Wellness Programme at Parliament.
Employees participated in Big Walk Wellness Programme initiative in which 2 700 employees and their family members enrolled.

On Aids Day, 220 people went for HIV Counselling and Testing (HCT).

Provided the telephone counselling service (60%) and it was the most utilised service.

The most prevalent problem involved relationships.


Risk assessment – Audit and Human Resource Follow-up reviews of information technology were conducted on Vulnerability Assessment; Change Control; General Computer Controls; Application Controls; and assessment of Maturity of IT Processes.

Institutional risk assessment was conducted to identify 10 priority risks.

Conducted the baseline risk assessment to the management of the stores.

Safety signage installed within Marks Building and 90 Plein building.
Conducted risk assessment on delivery ramp-related requirements and relevant systems Employee development Capacity building was conducted on managing misconduct, poor performance and incapacity of managers and supervisors.

Parliamentary Management Development Programme (PMDP) from Stellenbosch University was introduced and 28 emerging managers have been enrolled.
Legislative Sector support The Parliamentary Service is in the process of developing the monitoring and evaluation framework for the legislative sector.

Eight sector meetings were facilitated to institutionalise the Legislative Support approach by the end of the 4th term.

Other support A special Committee of Chairpersons (CoC) meeting was held to deal with the Reviewing the Legislative Processes in Parliament.

A guiding document on focus areas for the 4th term was developed.
Petitions and unsolicited submissions from the public were processed, tracked and monitored, and have been reported accordingly.

Forty-one protocol and ceremonial services were facilitated.

Effective compliance with policies and the Financial Management of Parliament Act Committees were supported by providing 35 legal opinions.
These 14 annual rePOrt 2010/2011 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA also included requests for access to information in terms of the Promotion of Access to information Act.

Reviewed 37 policies to ensure the achievement of Parliament’s objectives in compliance with established laws and regulations.

Conducted training for all employees on establishment of an anti-fraud culture.
The following support and services were also provided:- Capacitated Financial Management Office to strengthen the improvement of financial management environment by establishing Improvement of Financial Management Environment Project (IFMEP).

Capacitated the Internal Audit function to ensure implementation of Auditor- General South Africa recommendations and enhance risk management processes.

Developed an integrated risk profile for Parliament through a comprehensive risk analysis process.
Two study tours were conducted to do comparative studies of the Money Bills Amendment Procedure and Related Matters Act.

In addition, three workshops for MPs on the implementation of the Parliamentary Budget Office were conducted.

The appropriate governance structure of the Oversight Mechanism (OM) was finalised as required by the Financial Management of Parliament Act.

Drafted financial statements in accordance with GRAP standards for the first time in this financial year.
Submitted monthly financial statements compliant with section 51 of the FMPA to the Executive Authority and National Treasury.

National treasury accepted the request for the new budget structure, this was done to ensure the alignment of strategic plan and Estimate of National Expenditure.

Financial statements were drafted on new reporting framework - Generally Recognised Accounting Practice (GRAP).
This new GRAP framework came up with new financial discipline or practice in the parliamentary service hence there was change management advocacy to introduce the Improvement of the Financial Management Environment of Parliament (IFMEP).

During this period the Pan African Parliament was provided with numerous technical and content support.

A team of specialists and managers was requested to facilitate strategic planning for the PAP for the period 2011 to 2013.
Parliament coordinated the PAP workshop of the Bureau and statutory committee meeting of the permanent members.

Members were also provided with support to participate in joint workshop of the Bureau of PAP, Permanent Committees, Regional and Women Caucuses, and the Committee on Administrative and Financial evaluation.

Institutionalise the Legislative Support approach by the end of the 4th term.
The Policy on Revenue Sharing Framework was approved by the Speakers Forum of the Legislative Sector and the transfers to institutions will commerce in 2011-12 financial year.

The EU Delegation was engaged regarding the second donor submission.

A meeting with Treasury and Independent Development Corporation’s annual rePOrt 2010/2011 15 (IDC) representative was coordinated to ascertain the possibilities of donor funding in South Africa.
Strengthening and implementation of Enterprise-wide Risk Management (ERM) strategy, Internal Control and Governance systems.

Monitored ICT trends and development of relevant business systems to support effective operations of the institution.

Parliamentary ICT Steering Committee endorsed the improvement of ICT systems, identified and mitigated those risks.

Provided ICT Training to 423 employees and 136 Members of Parliament.
Provided training on Parliamentary Content Management System (PCMS) to 177 new and 254 refresher users and rolled out PCMS to 132 employees.

Reviewed and revised ICT Strategy (MSP) 2009-2014 to align it with Parliament Strategy.

Projects initiated: Technology Enhancement of the NCOP Chambers.

Video-Broadcast Upgrade Project.

ICT Infrastructure Upgrade.

Marang (ERP) systems: 99% availability and maintenance of ERP systems (no unscheduled downtime).
Maintenance and Support - ICT Business Support systems: 99% availability and maintenance of business systems and no unscheduled downtime.

audio Visual systems: 99% availability and maintenance of audio visual systems within Committee rooms and Chambers.

Business systems and applications: ICT presented training on the usage of ICT products, new software and hardware to Members of Parliament and employees.

ICT completed a business case to develop a Budget Tool (oversight).
The Biometrics (time and attendance) business case was also developed and it was endorsed by the ICT Steering Committee.

User Requirements Analysis of Digital Recording System and NCOP Chamber upgrade was completed.

All audio visual systems have been operational and maintained at between 96% and 100%, particularly during the business of Parliament.

Mid- Term Review of ICT strategy MSP 2009- 2014 was also finalised.
Facilitated engagement through the ICT Focus Group with Members of Parliament to encourage the exploration of public participation platforms to increase civic activism and citizen involvement in Parliament; two (2) meetings held.

Provided Business Analysis services in support of institutional improvement.

Developed eight (8) business cases and six (6) was endorsed by the ICT Steering Committee.

Developed 3 user requirements which were endorsed by the business owners.
Developed 4 functional design specifications for PCMS.

Upskilled ICT employees through functional ICT, ARIS, Oracle, Sound and Vision training.

16 annual rePOrt 2010/2011 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA funded by the United Nations (UN) and Parliament SA is currently hosting the TRADOS server.

Effective office space utilisation A number of heritage items were restored by service providers: antique furniture, wall clocks, picture frames and old parliamentary dinnerware.
87 artworks on paper were conserved.

35 images were supplied and 4 artworks lent out.

annual rePOrt 2010/2011 17 Participate in regional and international ICT events Hosted and participated in the annual World e-Parliament and African Parliaments Knowledge Network (APKN) conferences.

Facilitated adoption by SALSA of ICT Strategic Planning Framework to the Information System Forum (collaborative ICT forum between the legislatures and Parliament).
One ICT Steering Committee meeting was held to discuss and/or endorse the infrastructure upgrade and renewal / Disaster Recovery, and the NCOP upgrade project.

In NCOP upgrade, the design for gallery and chamber was completed within the required timeframes.

To enhance the regional collaboration Parliament hosted Akoma Ntoso workshop – Localising Akoma Ntoso, Extensible Markup Language (XML).
XML is a simple, very flexible text format that originally was designed to meet the challenges of large-scale electronic publishing.

It is also playing an increasingly important role in the exchange of a wide variety of data on the Web and elsewhere.
Technical Mission to Zambia The collaboration of Parliament of South Africa with Global Centre for ICT in Parliament and SADC-PF was to assist the National Assembly of Zambia in strengthening the ICT Institutional Framework through the development of the Parliamentary Information System Operation Policy (PISOP), in accordance with recommendations of its ICT Master Plan.

Parliament SA successfully implemented the TRADOS (translation services software) project in collaboration with Pan African Parliament.
The project was PrOgramme 2: legiSlatiOn and OVerSight 18 annual rePOrt 2010/2011 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA PrOgramme 2: legiSlatiOn and OVerSight Purpose: To fulfil Parliament’s legislation and oversight mandate and to provide auxiliary services to enable the effective functioning of both Houses and committees.

Objectives: To Strengthen and support Parliament’s oversight and legislative functions to ensure achievement of constitutional mandate.
To continuously cultivate and preserve institutional knowledge by ensuring recording of all proceedings.

To Ensure compliance with the Constitution and House Rules by both Houses and their Committees by giving procedural advice, support and guidance.

Outcome: Oversight processes and laws that are responsive to the needs, of the people and protect the rights, of the people of South Africa.
Programme Outputs Develop joint planning, monitoring, co-operation and evaluation mechanism with relevant stakeholders Consolidated and distributed provincial programmes to assist the Programming Whip to attend to special delegates at Joint Sitting debate.

Co-ordinated the presentation of Municipal and Provincial Audit report by the Auditor-General.

There was joint planning during the:- Facilitation of a provincial briefing on the Division of Revenue Amendment Bill via video conferencing.
Consolidation and distribution of provincial programmes to assist the Programming Whip Facilitation of a meeting to revitalize NCOP content on parliamentary website.
Documentation of ATCs, Order Paper and speakers’ list that were published on the Chamber Information Management System Liaised with Provinces regarding the following 5 Bills:- • Black Authorities Act Repeal Bill [B9 – 2010] • Independent Police Investigative Directorate Bill [B15B – 2010] • Civilian Secretariat for Police Service Bill [B16B – 20Higher Education and Training Laws Amendment Bill [B26B - 2010] • Division of Revenue Amendment Bill [B35 – 2010] Coordinated attendance of special delegates at Joint Sitting.
3 Minutes prepared for Programme Committee meetings, 2 for Subcommittee on Review of Rules and 1 for Joint Rules Committee.
annual rePOrt 2010/2011 19 The following 3 Bills were tagged: • Local Government: Municipal Implementation of the Oversight and Accountability Model Electoral Amendment Bill, [B27 – 2010] • Immigration Amendment Bill, 2010 • Refugees Amendment Bill, 2010 Communicated with provincial legislatures to finalise mandates of the following pieces of legislation: The gaps identified during the implementation of the model are being addressed by reorganisation of the Legislation and Oversight Division.
The IT systems are being investigated to consider user requirements.

• Social Assistance Amendment Bill Oversight and Accountability [B2B -2010] • Independent Police Investigative Directorate Bill [B15B -2010] • Civilian Secretariat for Police Service Bill [B16B – 2010] Facilitated the participation of Ministers, Deputy President and President in questions sessions and other programmes of Parliament.

21 reports for publishing in the ATC were prepared.
4 statements in terms of section 106(3) of the Local Government: Municipal Systems Act, 2000: • Mandeni Municipality • Indaka Municipality • Ehlanzeni District Municipality • Midvaal Local Municipality 5 termination interventions were conducted for five municipalities in terms of section 139 of the Constitution.

Review and amend the existing rules on oversight 4 meetings of Subcommittee on Review of NA Rules Committee were held.

Procedural advice was provided in relation to Joint Rule 159.
Advised departments of the deadline for tabling legislation to ensure that Parliament receives legislation on time, which allowed committees to process bills satisfactory.

Research and content (briefs and fact sheets) support was provided during the International Consultative Seminar on the Millennium Development Goals held at Parliament.

Completed analysis of annual reports of government departments.
Produced papers for the 55th United Nations Session of the Commission on the Status of Women in New York.

In consolidating the implementation process of the establishment of the Parliament Budget Office (PBO), the study Tour of relevant countries (Korea, Japan, Kenya, Germany and Sweden) was undertaken.
This was to explore 20 annual rePOrt 2010/2011 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA the role and capacity of legislatures in budget processes, and specifically the functions of agencies established to assist and advise members.
The objectives of these study tours included examining the: • extent of budget amendment powers in identified Parliaments and the relationship between these Parliaments and other branches and agencies of their respective state; • functions, extent of independence and capacity of budget offices or similar mechanisms; • role of parliamentary committees and how these interact with each other in budget processes; and • the level of public participation and engagement with civil society during budget proceedings.
Furthermore, the representative Development Bank of Southern Africa (DBSA) participated in the workshop that was conducted.
The emphasis of the workshop was on institutional arrangements with regard to the:- • Core functions in the Money Bills Amendment Procedure and Related Matters Act No • Comments on mandatory and discretionary functions of PBO • Capacity and structural issuers of PBO Various reports were analyzed to facilitate the oversight work by committees: • An analysis of the Mine Health and Safety Council’s Annual Report 2009-10 • An analysis of the Petroleum Agency South Africa (PASA) Annual Report 2009-10 • Analysis of the Mining Qualifications Authority Annual Report for 2009-10 • Summary and analysis of DBSA 2009-10 Annual Report • South African Social Security Agency – 2009-10 annual report analysis • Annual Report of the Portfolio Committee on Higher Education and Training • Productivity SA Annual Report • An analysis of the Unemployment Insurance Fund Report - 2009-10 • The Department of Labour’s Annual Report - 2009-10 • An Analysis of the Compensation Fund’s Annual Report 2009-10 • The CCMA Forensic Report 2010.
Pass outstanding and new legislation Procedural advice and guidance was provided to 43 sittings of the National Assembly at which advice was provided on 39 Bills that were passed.

Advice was also provided for the adoption of the Appropriation Bill.

Provided content and secretarial support in 4 NA PC, 5 CWF and managed proceedings of 5 meetings of National Assembly Programme Technical Committee, 1 JPC and 1 NA Resolution Committee.

2 Joint Sittings were held.


Processed 9 appointments and 9 resignations of Members of the NA.

Processed 83 House resolutions within the set timeframe.

Provided legal advice (relating to procedural issues) on the designation of members of the Magistrates’ Commission.
annual rePOrt 2010/2011 21 Supported the legislative programme in the following:- Ensured that Parliamentary Liaison Officers provide information to committees during the Budget Review and Recommendations Report (BRRR) process in terms of the money Act.

RICA Bill - which extends the deadline for personal information to be submitted.

Ongoing consultation with Ministries and Committee Chairpersons on priority legislation.

The 3 Higher Education Bills (S76) were passed.


Ongoing tracking of legislative priorities as set out by departments in their legislative programme for 2010.

Provide secretarial and administrative services to chairpersons and members of committees Secretarial and administrative services rendered to chairpersons and members of committees.
Committee Meetings for the year end – 01 january 2010 to 31 December 2010 Joint Commitees 8 Total NCOP NA 115 1538 23 267 92 1271 1 10 100 1000 10000 Meetings held Meetings Cancelled There were a total of 1679 meetings - 1271 in the National Assembly and 267 in the National Council of Provinces, respectively.

The cancelled meetings totalled 115 - 92 for the National Assembly and 23 for the National Council of Provinces.

Joint Committees had 8 meetings.
Oversight trips (for the year end – 01 january 2010 to 31 December 2010 undertaken by Committees: 103 Committees of the National Assembly: 74 Committees of the National Council of Provinces: 29 22 International Study Tours undertaken by committees amongst others are the following:- National Assembly Committees: • Portfolio Committee on Mineral Resources – Bolivia • Portfolio Committee on Labour – Geneva • Portfolio Committee on Energy – Ghana • Portfolio Committee on Social Development – Brazil • Portfolio Committee on Public Service and Administration – Ghana National Council of Provinces Committees: • Select Committee on Public Services - Cuba • Select Committee on Social Services - Netherlands • Select Committee on Economic Development and Select Committee on Trade and International Relations - China • Select Committee on Labour and Public Enterprises – Japan 22 annual rePOrt 2010/2011 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA joint Committees: 2 • Constitutional Review Committee – France and Italy • Members of different Portfolio and The following Bills were still before committees of the National Assembly and National Council of Provinces Select Committees - Mexico (Cancun) Committees of the National Assembly • Traditional Courts Bill [B 15–08 Bills considered by committees.
(s76(1)] Committees processed 45 Bills - amongst others are the following: • Independent Police Investigative Directorate Bill [B15D-10(S76(1))] • Civilian Secretariat for Police Service Bill [B16D-10(S76(1))] Police • Local Government: Municipal Systems Amendment Bill [B 22-10 (s75)] • Correctional Matters Amendment Bill [B 41-10 (prop s75)] • Constitution 17th A/B [B 8-09 (s74)] • Protection of Personal Information Bill [B 9-09 (s75)] • Protection from Harassment Bill [B 1-10 (s75)] • SA Post Office Bill [B 2-10 (s75)] Committees of the National Council of Provinces • Sectional Titles Schemes Management Bill [B 20B-10 (s76(1)] • Community Schemes Ombud Service • Companies Amendment Bill [B 40- Bill [B 21B-10 (s76(1)] 10 (s75)] • Merchant Shipping (Safe Containers Convention) Bill [B 31-10 (s75)] • Immigration Amendment Bill [B 32- • Merchant Shipping (Safe Containers Convention) Bill [B 31B-10 (s75)] • Immigration A/B [B 32B-10 (s75)] • Basic Education Laws A/B [B 36B-10 10 (s75)] (s76(1))] • Basic Education Laws Amendment Bill [B 36-10 (s76(1))] Ad Hoc Committees: • Rural Development and Land Reform General Amendment Bill [B 33 – 201] • Division of Revenue Bill [B4-2011] (Reprint) The following were referred to the Mediation Committee, which adopted new versions of the Bills: • Independent Police Investigative Directorate Bill [B15D-10(S76(1))] • Civilian Secretariat for Police Service Bill [B16D-10(S76(1))] Four Ad Hoc Committees were established by the Houses: • Ad Hoc Committee on Commission on Gender Equality Forensic Investigation • Ad Hoc Committee on Protection of Information Bill • Joint Ad Hoc Committee on Judicial Conduct and the Regulations on Judges’ Disclosure and Registrable Interests • Joint Ad Hoc Committee on Second Implementation Report on South Africa’s Peer Review Programme of Action annual rePOrt 2010/2011 23 Legislative Proposals The Legislative Proposals were referred to the Committee on Private Members’ Legislative Proposals and Special Petitions of the National Assembly: • Legislative
 proposal to amend the Choice on Termination of Pregnancy Act, No 92 of 1996 • Legislative proposal to prohibit contracting between an organ of state in the national sphere of government and companies whose directors are party-political office- bearers or public representatives, or whose shareholders are party- political office-bearers or public representatives or political parties • Legislative proposal to regulate business interests of State employees The Committee reported on the following 6 Proposals: • Legislative proposal to amend the Choice on Termination of Pregnancy Act, No 92 of 1996 • Legislative proposal to amend the Land and Agricultural Development Bank Act, No 15 of 2002 • Legislative proposal to repeal the South African Boxing Act, No 11 of 2001 • Legislative proposal to regulate private funding of political parties • Legislative proposal to correct certain anomalies in the Executive Members’ Ethics Act, No 82 of 1998 • Legislative proposal to amend the Employment Equity Act, 1998 (Act No 55 of 1998) was withdrawn.
Legislative Proposal before the Committee on Petitions and Members’ Legislative Proposals (NCOP): Legislative proposal with regard to the amendment of the Municipal Systems Act, 2000 International agreements 17 International Agreements were processed by committees.
Amongst others are the following: • Amendments to the Convention on Prohibitions or Restrictions on the use of Certain Conventional Weapons Which May Be Deemed to Be Excessively Injurious or to Have Indiscriminate Effects (CCW) • Agreement on Requirements for Wine Labelling of the World Wine Trade Group (WWTG) • Agreement on Mutual Acceptance of Oenological Practices by the World Wine Trade Group (WWTG) • Agreement between the Government of the Republic of South Africa and the Government of the Republic of Zimbabwe for the Promotion and Reciprocal Protection of Investments • Agreement between the European Community and its Member States, of the one part, and the Government of the Republic of South Africa, of the other part, Amending the Agreement on Trade, Development and Cooperation (TDCA) • Preferential Trade Agreement (PTA) between the Southern African Customs Union (SACU) and the Common Market of the South (MERCOSUR) • Protocol amending the Convention 24 annual rePOrt 2010/2011 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA between the Government of the Republic of South Africa and the Government of Ireland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital Gains Language (SASL) interpreters had to work inordinately long hours due to the fact that their clients had to be interpreted for even after the meetings had ended, such as in the dining halls in the mornings and evenings.
• Protocol amending the Convention between the Republic of South Africa and the Kingdom of Sweden for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income • Accession to the African Charter on Democracy, Elections and Governance • Final Acts of the International Telecommunications Union (ITU) Plenipotentiary Conference, Antalya, 2006 Members’ speeches interpreted during all plenaries.
An amount of R6 million has been set aside for the equipping of the interpreting booths in 90 Plein Street to increase the booth space for additional intake of staff for interpreting in additional plenaries and committees’ venues.

The current interpreting evaluation tool is being revised so that it can be used as a proactive mechanism of identifying and rectifying poor performance in interpreting.
This tool will also assist in identifying whether the problem occurs when staff are interpreting into, or from, their mother languages.

Interpreting services were provided during the meeting of the Youth Development Forum that was held in Caledon.

The South African Sign Recording and Transcription: 100% of Members’ speeches were recorded and transcribed.
However, the agreed timeframes were not met in all instances due to systemic challenges when the digital recording system malfunctioned and lost the data which had to be retrieved through other systems.

Publishing: 100% of publications have not been achieved.

There is still a bottleneck at the checking and collation levels.

An action plan to clear the backlog that developed after the 2010 Extended Public Committees (EPCs) is currently underway.

Three freelance editors have been employed.


Bound Volumes of Hansard produced Delivered volumes 13, 14,, 69, 70, 71, 74, 118, 119 &,122 of Hansard.

Technical challenges experienced in delivering volume 128 of 2009 are being addressed.

Translation Non-Hansard documents translated and edited: Translations delivered as agreed with the clients.

1713 pages were translated and edited during this financial year.
annual rePOrt 2010/2011 25 Number of Questions & pages translated and edited: Translated Questions were delivered as agreed with client.

2997 Questions were translated and 160 edited during this financial year.

Number of Motions & pages translated and edited: Translated Motions were delivered as agreed with client.

469 Motions were translated and edited during this financial year.

Bills translated: Translated a Bill with 108 pages.

Legislative Programme and Bills tracking 16 New Bills were introduced.
The Electoral Laws Bill was approved by Cabinet.

The Medium-Term Budget Policy Statement (MTBPS) and the Adjustments Appropriation Bill were introduced in October 2010.

The Adjustments Appropriation Bill was debated in the National Assembly and Ministers were present to answer questions on either overspending or under-spending on their respective budgets.

The Municipal Electoral Bill – requested prioritization to allow IEC to complete its work prior to the local government elections.
RICA Bill - which extends the deadline to June 2011 for personal information to be submitted.

Request - for the Companies Amendment of Bills to be prioritized in order to be passed urgently.

Letters sent to departments requesting their legislative programmes to be submitted by the end of January after the Cabinet lekgotla to develop government’s legislative priorities for 2011 to inform the parliamentary programme.

Incorporated priorities identified by Cabinet lekgotla into the legislative programme.
Develop oversight monitoring and evaluation system A summary of decisions by House Committees sent to relevant stakeholders within 48 hours with one Joint Rules Committee meeting and Subcommittee meetings on Review of NA Rules Committee.
Supported processes of oversight and accountability on the following:- Workshop A workshop was held for Parliamentary Liaison Officers and departmental employees, in preparation for the Medium-Term Budget Policy Statement (MTBPS) process and matters relating to the Money Act.

The Office of the Leader of Government Business (LOGB) convened 3 previous workshops on matters relating to the Act.
The Money Bills Amendment Procedure and Related Matters Act requires National Assembly Committees to submit Budget Review and Recommendation Reports.

In order 26 annual rePOrt 2010/2011 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA to enable staff supporting these committees to draft the reports, a workshop was conducted on how to assess the financial performance of a government department.

The workshop was facilitated by officials from the Auditor-General’s office and those from National Treasury.
Reports for LOGB on parliamentary business A total of 17 reports were submitted to the Leader of Government Business for Cabinet on parliamentary issues such as outstanding replies to Questions.

This gave Ministers insight into questions they have not yet replied to.

Facilitated participation of the Cabinet in Plenaries: programming whips.

The Budget Vote process was completed in June 2011.
Facilitated Communication on Compliance Matters Ensured that departmental Parliamentary Liaison Officers are mindful of the department’s compliance with Parliament’s regulations and requirements in terms of: • Joint Rule159 – for new legislation to be introduced; • National Assembly Rule 241- withdrawal of proposed legislation; • Tabling of Strategic Plans [9 March] - to facilitate the processing of departmental Budget Votes by committees; • Translations of Bills - a constitutional requirement.
Facilitated the participation of President, Deputy President and Ministers in Questions sessions in both Houses.

Women’s Parliament Provided support to the Deputy Speaker in identifying the guest speaker for the Women’s Parliament – to lead the debate on Millennium Development Goals and South Africa’s progress in achieving the outputs.
Liaison on Matters relating to Vacancies in Chapter 9 Institutions Identified the following vacancies to be filled: • 2 Public Service Commissioners • SABC Board - Resignations • ICASA A total of 2 reports were submitted to political parties on availability of Ministers, ensuring that Questions are prioritized based on availability in the House so as to maximize the effect of supplementary questions.
Advised departments of the deadline for tabling legislation to ensure that Parliament receives legislation timeously, which will allow Committees adequate time to process Bills.

Budget Vote Debates Facilitated the consultation on scheduling of Budget Votes.
This was done in consultation with the Parliamentary Liaison Officers and the annual rePOrt 2010/2011 27 Develop, implement strategy to ensure continuous cultivation and preservation of institutional knowledge and access Digitization of documents was considered through a project to convert all committee documents into digital format to enable archiving in the institution’s central depository.

This will assist easy retrieval of documents in future.
Develop, support and build the capacity required to assist committees to perform their duties efficiently and effectively.

An institution of higher learning has been appointed to assist with the upskilling of committee support employees.

Employees identified for training were Committee Secretaries, who will undergo training in writing.
Other Training identified were events management, office management leadership and emotional Intelligence Reactive Research Services provided: Reactive research requests form the bulk of the research work produced.

Approximately 909 research requests were received and 935 completed.

Not all the requests made were due for the period under review or were requested in the period under review; some were also completed proactively.
The post-visit report of Maluti-A-Phofung Local Municipality was prepared following the NCOP’s Taking Parliament to the People in the Free State.

The Research Unit provided reactive research services to assist budget review and recommendation review of the African Parliament Knowledge Network and World e-Parliament Conference on 18 to 27 October 2010.
Conducted both proactive and reactive research that assisted members and committees with research product on identified topical issues to facilitate their oversight activities.

A total of 30 Extended Public Committees were held to consider Budget Votes for government departments and other publicly funded entities.

During this period, the Research Unit completed a number of papers in respect of the State of the Nation Address.
These include: Secretarial support and content were provided in 11 meetings of the NA Programme Committee, 56th CPA Conference and Society of Clerks at the Table and managed proceedings of 10 NA Programme Technical Committee meetings.
• Rural Development and Land Reform Perspectives on 2011 SONA • SONA Cooperative Governance and Traditional Affairs • Analysis of the State of the Nation Address from the Agriculture, Forestry and Fisheries perspective • Analysis of the State of the Nation Address – PC on Higher Education and Training • 2011 SONA Analysis: National Treasury 28 annual rePOrt 2010/2011 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA • Science and Technology Perspective on the 2011 State of the Nation Address • Sport and Recreation Perspective on the 2011 State of the Nation Address • 2011 State of the Nation analysis (Tourism perspective) The following papers were produced for the SADC Parliamentary Forum (SADC PF) 27th Plenary Assembly: Trafficking of Women and Children with reference to the 2010 World Cup Benchmarks for Democratic In support of the 15th EP/South Africa Inter-Parliamentary meeting on the impact of the Global Economic Crisis on Health Care in South Africa and the situation in Zimbabwe were completed.
In support of a delegation attending the 13th meeting of African Ministerial Conference on the Environment, the paper on Improvement in the lives of slum-dwellers: A brief overview of the status quo in Africa was completed.
The following papers were prepared for the Women’s Summit: • Peace and prosperity on the continent: Women and Xenophobia • Women’s Parliament: Review of Previous Resolutions • Capacity Development for Women • Women, Rural and Economic Development: Women’s Parliament - 30 August - 2 September 2010 The following Reports were completed for the Ad-Hoc Committee on service delivery: • Analytical report of the Ad-Hoc Committee on service delivery of public hearing held in the Western Cape province for Du Noon & Khayelitsha • Analytical report of the Ad-Hoc Committee on service delivery of public hearings held in the N/West province • Report emanating from the public hearing in North West Municipalities: The case of Greater Taung & Ramotshele Local Municipality The following papers were completed for the 123rd IPU Assembly, Geneva: • Draft Report of the Ad Hoc Committee on Service Delivery Transparency and Accountability in the Funding of Political Parties and Election Campaigns (for 123rd IPU Assembly) The Role of Parliaments in Ensuring Sustainable Development through the Management of Natural Resources, Agricultural Production and Demographic Change Legislative frameworks aimed at preventing electoral violence, improving election monitoring and ensuring the smooth transition of power.
Papers were produced for the First youth World Legislative Forum in Mexico City: • Youth Employment • A Focus on Youth Participation in the Democratic Process • World Youth Conference Mexico.

Youth and Poverty.

Economic Participation in the Context of the 2010 Soccer World Cup.
annual rePOrt 2010/2011 29 During the period under review, the following papers were prepared for the Chairperson of the NCOP for the G20 Speakers’ Consultation in Ottawa, Canada: New paradigms for peace and security Collaborative Global Strategies for Food Production and Distribution exploitation of natural resources in the DRC • Post-Copenhagen Technology Transfer: New technologies and technical capacity-building in the African, Caribbean and Pacific states • The challenge of reconstruction of a post-conflict state A number of briefs and fact sheets were completed for the International Consultative Seminar on the Millennium Development Goals held at Parliament: • Fact Sheet on the progress that South Africa has made in achieving Millennium Development Goal 7: Ensure Environmental Sustainability • The role of legislatures in achieving Millennium Development Goal 7: Ensure Environmental Sustainability • Achieve Universal Primary Education – MDG 2 • MDG 1: Eradicate extreme poverty and hunger – rural development, food security and land reform • Fact sheet on “Goal 3 of the MDGs to Promote Gender Equality and Empower Women” for the International Consultative Seminar on MDGs organised by the Speakers’ Forum.
The following papers were prepared for the ACP-EU joint Parliamentary Assembly in the DRC: Produced a number of financial reports, including: • Report of the Standing Committee on Appropriations of the Medium- Term Budget Policy Statement for 2010/11 • Report of the Standing Committee on Appropriations for the Adjustments Appropriations Bill 2010/11 • Summary and Analysis of the Medium-Term Budget Policy Statement 2010/11 • The state of municipalities in the Free State • Analysis of 2010 Division of Revenue Amendment Bill The following were prepared for the African Parliamentary Knowledge Network (APKN) and World e-Parliament Conference: • Fact Sheet: Advancements and challenges in ICT in South Africa • Fact Sheet: Strengthening trust between Parliaments and the people • The security problem in the • Fact Sheet: The Benefits of Sahara-Sahel region: Terrorism and trafficking in drugs and arms • Human trafficking in the Sahara- Sahel region in Africa • Challenges and Threats to Regional Stability in the Central African region, arising from the Illegal Parliamentary Networks: The case of the African Parliamentary Knowledge Network • Presentation in APKN and World e-Parliament Conference on Strengthening Trust between Parliaments and the People 30 annual rePOrt 2010/2011 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA • Expanding Access to Information: Implications for Parliaments, Civil Society and the Public A number of briefs were completed for the EU-SA Summit held at Parliament amongst others are the following: • Economic Partnership Agreements and Agriculture (including Food Security) • 10th Anniversary of the UN World Conference against Racism in 2011 • 17th SA-EU Inter-Parliamentary Meeting • Economic stability of EU states: Current status • Economic Partnership Agreements as they relate to regional integration, SADC-EPA-EU negotiations Legislative Proposals The following papers in support of legislative proposals were produced: • Legislative Proposal on Private Political Party Funding • Legislative Proposal on the Repeal of the Boxing Act • Legislative Proposal on amendment to the Executive Members Act (Act No 82 of 1998) • Legislative Proposal on Business Interests of State Employees Contracting with the State Bills referred and papers produced A total of 16 Bills were analyzed or papers prepared in support of the legislative process: • South-South Cooperation and • Summary of the draft Land Tenure Development Models Bill [B -2010] • Important issues in Asia as they • Military Veterans Bill [B1-2011] – affect the SA-EU and South-South Cooperation • South Africa-EU Strategic Partnership Issues and perspectives • State Liability Bill • A Brief Overview of the Merchant A number of papers were produced for the 55th United Nations Session of the Commission on the Status of Women in New york: • The Elimination of All Forms of Violence Against the Girl Child • Gender Equality and Sustainable Development Shipping (Safe Containers Convention) Bill [B31-2010] • Overview of the Government Immovable Asset Management Act (No.
19 of 2007) • Companies Amendment Bill • South African Post Service Bill: Analysis and questions for the Department of Communications • Reworked report on 54th Session • Summary and Analysis of of the Commission on the Status of Women • Elimination of preventable maternal mortality and morbidity through the empowerment of women Submissions on Rural Development and Land Reform General Amendment Bill for PC [B33 -2010] • Summary and Analysis of the Correctional Services Amendment Bill of 2010 • Fact Sheet: State Land Disposal Act (No.
48 of 1961) annual rePOrt 2010/2011 31 • Immigration Amendment Bill History and Context • Summary of role of Select Committees ito Money Bills Amendment Procedure Act • Background information on the “Fingerprinting Bill”, the Criminal Law (Forensic Procedures) Amendment Bill [B2-2009] • Information brief on the implementation of the Sexual Offences Act • Clause-by-clause compilation of the public submissions on the Protection of Information Bill, including comparative information • Cooperative Governance Considerations on the Single Public Service Bill Approximately 356 were completed in the period under review.
These include: • Comprehensive Rural Development Programme in Muyexe • Issues on the PSETA Forensic Report • Infrastructure and Local Economic Development • New Growth Path – The Social Package • Implementation of infrastructure and equipment maintenance plans to improve service delivery • Implementation of maintenance plans and its impact on service delivery • Summary of the Annual Financial Statements of the Council for Geoscience • Summary of the Annual Financial Statements of MINTEK • Paper on “Expenditure Review of the National Youth Development Agency in the period April – December 2010” • Comparative Study of Presidential Term Limits in Southern Africa and East Africa • Overview of progress on the Asset Register of the Mpumalanga Department of Public Works • Conditional Grants expenditure analysis for Northern Cape Municipalities • Review of Domestic Violence Act • The way forward for football in South Africa • Review of the Inter-Parliamentary Union: 2010 • Review of the SADC-PF: 2010 Library service and content support to Members of Parliament Information queries – Reference Service The Library received a total of 2 244 (A queries: 973 and B queries: 1271) requests for information from Members of Parliament and employees; 75% of the information requested was for oversight purposes, while 25% was for legislative purposes.
To support the work of Parliament, books and other library sources were provided, legal repositories improved and information provided in paper and electronic format.

There is an increase in the number of queries received internally and a decrease in the number of queries received from external clients compared to the previous annual report period.

There is an indication of improvement on the services that were provided to Members of Parliament since the introduction of the content per subject area.
The Library service has assigned eight librarians who provide information 32 annual rePOrt 2010/2011 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA and update content pages in the following areas of content: • Foreign law and Labour • Climate Change, Energy, Agriculture be used to respond timely to Member requests for current audio-visual content.

The Unit received a network address and password access to the FTP service.
and Water • Finance • Arts and Culture, and Communications • Social Development and Health • Safety and Security, and Education • Parliamentary Budget Office, • Elections and Local Government A librarian was assigned each to these subject areas.

Each is responsible for the creation of a web page for each cluster and provision of content that is relevant and timely.
Statistics showed that the proactive provision of information or provision of content information in the web pages was popular with Members of Parliament.

In providing material support to employees and Members of Parliament, the Library service has created web pages for services and products.
The homepage section of the Virtual Library, “What’s New”, was updated with links to important information on “Parliamentary Budget Offices” and “Judicial Conduct” Information queries – Special Services The Special Services sub-unit handled 115 queries during the reporting period: 66 internal queries and 49 external queries.

Artworks copyright approved: 16 The Library service is in the process of setting up an FTP service to receive audio-visual, digital content from the SABC and other service providers.
This content will be used for webcasting (broadcasting of multimedia over the Internet or Parliament’s Intranet) via the Virtual Library, and the service will Processing of Library material The statistics below reflect material received in the last financial year, which also includes retrospective processing of old material that is to be integrated into the Africana collection.
Reactive research requests form the bulk of the research work produced by the Unit: • 438 research requests were received and 234 completed.

• A total of 37 previously completed papers were sent.
• The following papers were produced for the SADC-PF 27th Plenary Assembly: • Trafficking of Women and Children with reference to the 2010 World Cup • Benchmarks for Democratic Legislatures The following papers were completed for the 123rd IPU Assembly, 4-6 October 2010, Geneva: • The Role of Parliaments in Ensuring Sustainable Development through the Management of Natural Resources, Agricultural Production and Demographic Change • Legislative frameworks aimed at: preventing electoral violence, improving election monitoring and ensuring the smooth transition of power The following papers were prepared for the Women’s Summit: • Peace and prosperity on the continent: Women and xenophobia • Women’s Parliament: Review of Previous Resolutions annual rePOrt 2010/2011 33 • Capacity Development for Women The library completed the report on the 27th Plenary SADC-PF meeting in Zambia.
Presented papers on strengthening trust between Parliament and People and Expanding Access to Information: Implications for Parliament, Civil Society and the Public.

Participated in the ACP-EU Joint Parliamentary Assembly in the DRC.

Development of the public participation model As approved by the Joint Rules Committee, the development of the model is being initiated through a project.

The project governance structures have been approved.
The Project Charter has been developed and is awaiting political input and authorisation.

34 annual rePOrt 2010/2011 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA annual rePOrt 2010/2011 35 3.

Public and internatiOnal ParticiPatiOn 36 annual rePOrt 2010/2011 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA 3.
Public and internatiOnal ParticiPatiOn Purpose: Bilateral engagement and International Participation by Presiding Officers (POs) To fulfil Parliament’s public participation and international participation role and provide support to undertake such activities.

Objectives: To improve public participation and involvement in Parliamentary processes To improve public education programmes.
Outcome: Parliament that is people-driven through the recognition of their voices in line with the provision in the Constitution.

Programme Outputs Review and revise international relations policy.

International participation: Hosted the Ambassador of the Kingdom of Saudi Arabia to deliberate on strengthening of Parliamentary Relations, sharing of information, the need to increase trade between the two countries and exchange of visits between the Parliaments.
and Members of Parliament established friendship groups, consolidated Memorandums of Understanding (MOUs), exchanged knowledge, strengthened relations, established future cooperation on initiatives regarding parliamentary issues, shared experience on the working of parliamentary committees and fostered closer relations.
Members of Parliament participated in PAP and SADC-PF activities by attending PAP Third Ordinary Session, the second African Speakers’ Conference and the World e-Parliament Conference, PGA Parliamentarians for Global Action, PAP Women’s Conference and SADC- PF Standing Committees’ Women’s Caucus RWPC Mission to the Congo (DRC), participation of UN Aids Health Portfolio Committee in relation to HIV/ Aids, shared experiences and cemented relations with civil society organisations on HIV mitigation and Faith-Based Centre to intensify intervention for reduction of new HIV/Aids infections.
annual rePOrt 2010/2011 37 Strengthen relations at Multilateral and Bilateral levels and monitor resolutions.
Members participated, amongst others, in the following: • PAP Third Ordinary Session • Second African Speakers’ Conference and the World e-Parliament Conference • PGA Parliamentarians for Global Action • PAP Women’s Conference • SADC-PF Standing Committee on Regional Women’s Parliamentary Caucus (RWPC) Mission to the Congo (DRC) • SADC Election Observer Mission, Tanzania • SADC-PF Consultative Meeting on the Governance of Natural Resources in the SADC Region, Johannesburg • African Parliamentary Union (APU) 33rd Conference of Speakers of National Parliaments, Equatorial Guinea.
Multilaterals Engagement and Africa: • 41st CPA Regional Conference • Meeting on Transformation of PAP • PAP Standing Committees • PAO Women’s Conference • PAP Rules Committee • XV111 International Aids Conference • SADC-PF Workshop on ICT Strategic Planning in SADC Parliaments • SADC - Climate Change Summit in Uganda • SADC-PF Consultative Forum • 2010 First Youth World Legislative Forum • SADC Meeting on Parliamentary Online HIV/AIDS Evidence Resources • SADC-PLC Advisory Board and Steering Committee • SADC-PF Seminar on Gender and HIV/AIDS • WTO Parliamentary Panel at Public Forum • Forum for SADC-PF Meeting on Eradication of Poverty • World Emerging Industries Summit • 56th CPA Conference • CBCF Brain Trust on Africa The Members participated in the analysis of the work of each of the above bodies to guide Parliament’s engagement with these bodies.
The other reasons were to assess and evaluate reports of delegations to meetings of these bodies as well as identify matters which require further follow up by Parliament RSA.

Facilitate and coordinate the implementation of International Relations Policy.
The PGIR is in the process of Reviewing the Parliamentary International Relations Policy document “Policy Perspective on Parliament’s Engagement and Involvement in International Relations” and development of Protocol Guidelines for delegations for their engagement in international forums.

PGIR has recently established fully functional Focus Groups, Friendship Groups, Strategic Partnerships and a Network Group.

The Focus Groups have since been established.


The draft rules/ guidelines within which the groups are to operate were before the PGIR for 38 annual rePOrt 2010/2011 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA consideration and subsequent adoption by the Joint Rules Committee.

Increase public participation through a range of programmes using diverse platforms in order to maximise the reach.
Public mobilisation plans were developed for a range of activities with the specific objective to increase the number of members of the public participating in programmes of Parliament.

These included targeting and inviting specific public organisations, encouraging attendance through radio and news promotions and facilitating access.
To this effect, members of the public attending the State of the Nation Address were 2 093; Budget Votes 755; Freedom Day 375; Africa Day 400; Women’s Parliament 350; Taking Parliament to the People 57 550; 16 Days of Activism launch handover funding to a HIV/Aids charity NGO 150; and Sittings of the National Assembly, National Council of Provinces and Committees totalled 12 787 for the year.

From February to November 2010, 10 editions of InSession were produced.
With a print run of 30 000, the demand is steadily exceeding the supply, requiring adjustment going forward.
New introductions to the publication include diverse views and opinions on legislation from individuals representing among others academic and research institutions, the My Story, where Members as public representatives speak about themselves, thereby allowing constituency readers to get to know them, the angle used to cover Bills so as to create a greater understanding of the roles and responsibilities of the two Houses, and educational contributions such as the Crossword and Sudoku.
The new radio programme was launched simultaneously at Parliament as a satellite view of Taking Parliament to People.

The intention was to set the tone for Members directly engaging and speaking with the public, but most of all making the public aware of this channel of information.
With a daily reach of approximately 52,000,000 the 17 radio stations reach a significant portion of the population on a regular basis and participation through the interactive 19 Minutes, the 5-minute education and information-sharing slot as well as the promotions ensure that the topic Parliament is part of consistent engagement on the airwaves.

In strategically communicating the work of Committees, numerous platforms are engaged to keep the public abreast of developments.
Press statements and alerts (137) regularly summarise Committee meeting discussions and explanations of Bills, while the arranged print, radio and television interviews (322), as well as press briefings (5) zoom in on key discussion points providing more detailed understanding.

Further insight into Committee activities are also provided with the regular articles (28) posted on the Website.
Media, publicity and communications strategies and plans were developed and implemented to publicize a range of activities in Parliament resulting in media coverage by a variety of media annual rePOrt 2010/2011 39 platforms.
There were 49 replies to media enquiries, and 137 statements were drafted and continue to be an important tool in providing context to the information about Parliament that reaches the public, which presents an alternative view or additional information so that readers are able to develop informed opinions on issues.

Formal development and implementation of public participation strategy and model.

Capacitated PCS in line with the approved communication mandate.
Promoted positive media coverage and profiling of Parliament through regular updates on the Faranani front page.

Survey results on media coverage and profiling were used to develop action plans to address the gaps.

Invited targeted media to interviews, issued statements and granted access to the premises during 6 events hosted.

Responded to Media enquiries relating to funding of Political Parties and Travel Policy of Parliament and statement issued in that regard.
Finalised layout and designs with the aim of profiling and promoting Parliament and its work and presenting an institutional identity.

Institutional calendar of Parliamentary activities is updated on a weekly basis.

Parliamentary Millennium Programme Amazwi abesifazane (Voices of Women) campaign Aim: This campaign is aimed at involving marginalized women from across the country, in activities that allow them to share their challenges as well as dreams and aspirations.
Given the fact that a large number of women especially in marginalized areas are still unable to read and write this project uses quilting as a medium through which they can express themselves.

Using the theme “What democracy means to me”, the PMP is able to tap into the knowledge and wisdom that exist in these communities.

PMP researchers also capture the contributions of women in the form of submissions that are in turn submitted to relevant committees in the Provincial or National Legislative organs.
A total of 9 Research Reports were completed.

Final copy of the DVD was received and negotiations are underway with the SABC to screen the DVD.

Submissions completed will be forwarded to Portfolio Committees of the 4th Parliament.

2010 Film Festival in Parliament Aim: The realities of our inherited society demand of Parliament to be more than a body for legislation and oversight.
To ensure that we create the participatory democracy envisioned by our Constitution, Parliament has an obligation to ensure that it remains people-centred and people-driven.
Therefore, the collective objective for this event is to provide a platform in 40 annual rePOrt 2010/2011 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA which the viewing of South African films will begin to create constructive dialogue within the Parliamentary Community regarding issues that speak to South Africa’s divided past, its realities and the present challenges facing us as a nation.
In so doing, we aim to create awareness within this community of the role they as individuals, with their unique histories and experiences, play in weaving the tapestry of a democratic nation in which our diversity becomes the very threads needed to construct a common vision for the future.

Hosted a series of special screenings to 106 senior citizens from different organisations and institutions in Athlone, Mitchells Plain, Langa, Philippi, Gugulethu, Grassy Park and Hanover Park.
They were also taken on a tour of the Mandela Exhibition at the Slave Lodge (Celebrating the Legacy of Mandela), followed by the screening of “Shirley Adams” and the Parliamentary Millennium Programme documentary on the “Voices of Women” campaign.

PMP youth programme 2009 – 2011 Aim: This programme is aimed at developing the youth socially and personally to strengthen their capacity to understand their role within the community and contribute towards strengthening democracy and nation-building.
This will be done by creating a platform for open and honest dialogue about particular social issues impacting on youth.

Established partnerships with GCIS (Government Communication and Information System), that assisted with the training of 10 ambassadors in radio broadcasting to do live radio broadcasts to 12 Community Radio Stations at the Youth Dialogue Forums in the various provinces.

Hosted 2 Youth Dialogue Forums in the Western Cape, with representatives from all provinces.
The youth discussed four themes emanated from the Social Survey conducted in 2009, namely Health, Unemployment, Education and Crime.

The Bokamoso Ambassadors visited Old Age Homes and Orphanages responding to the call to give 67 minutes of your time to do a good deed for Mandela Day.

A total of 15 Bokamoso Ambassadors attended the State of the Nation Truth Conference hosted by Umtapo Centre and the Steve Biko International Peace Awards in KwaZulu Natal.
In addition to celebrating Heritage Month, they visited Shakaland for a Zulu cultural learning experience.

Two Bokamoso Ambassadors, are participating in a pilot social entrepreneurship project called Reinvent.

They are being taught how to manufacture items from waste materials, and how to market these items in the mainstream consumer domain.

The project is being managed by Khulisa Community Development.
The Ur Turn magazine was produced and distributed at the Youth Dialogue Forums and various Youth organisations, schools and universities.

My story “Our story” Aim: This is a Community Mapping Project aimed at bringing communities closer annual rePOrt 2010/2011 41 Performance level Designed and co-produced a documentary of Northern Cape provincial legislatures.

Partial production completed, waiting on legislature for go-ahead with remaining work.
together by sharing their experiences with others through stories.

Be my friend Aim: A Cultural Exchange Programme aimed at bringing countries closer together by sharing their experiences with others through letter writing.

Coordinated 20 South African children between 9 and 14 years old to write letters relating to themselves and their environment, communities and their countries and to exchange it with their peers in Poland and Togo.

Letter writing ongoing.


Every View Counts (Publication) Aim: This publication documents the experiences of more than twenty long-serving Members of Parliament and Provincial Legislatures in utilizing Parliamentary structures, systems and processes to foster tolerance through dialogue.

Through this project, the PMP contributes to the institutional memory of Parliament and provides a resource for capacitating future Members of Parliament.
Inter-Legislature Exchange Aim: The Inter-Legislature Exchange is a tool to facilitate collaboration between Parliament and Provincial Legislatures in the design and implementation of nation-building initiatives.

Collaborative projects would specifically focus on province-specific projects and priorities.
42 annual rePOrt 2010/2011 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA annual rePOrt 2010/2011 43 memberS’ facilitieS 44 annual rePOrt 2010/2011 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA 4. memberS’ facilitieS Purpose: To provide telephone, travel and other facilities to Members of Parliament and fund medical aid contributions and travel facilities for certain former members.

This programme consists of National Assembly and National Council of Provinces Members’ Facilities.
Objective: To support the operational activities of Members by providing facilities.

Outcome: Well equipped (resourced), effective and motivated Members of Parliament to ensure the achievement of their constitutional mandate.

Programme Outputs continuous provision of operational facilities to members of Parliament • Maintained a 3-day turnaround on claims processing.

Administered training programme Provided assets and equipment Processed 17 638 claims for both Houses.
Provided travel procurement • • • • annual rePOrt 2010/2011 45 5. aSSOciated SerViceS 46 annual rePOrt 2010/2011 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA 5. aSSOciated SerViceS Purpose: Purpose: To provide financial support to political parties represented in Parliament.

This programme consists of Political Party Support, Constituency Support and Party Leadership Support.

Objectives To support the operational activities of Political Parties, Constituencies and Party Leadership.
Outcome Vibrant political culture that strengthens and promotes democratic ethos.

Programme Outputs continuous provision of associated services to Political Parties, constituency Offices and Political Party leadership.

All parties submitted audited financial statements with three having qualified audited opinions and those affected have submitted interventions to rectify the situation.
annual rePOrt 2010/2011 47 6. human reSOurceS rePOrt 48 annual rePOrt 2010/2011 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA 6. human reSOurceS rePOrt 1.

Personnel Costs table 1.1 Personnel Cost by Programme - 1 April 2010 to 31 March 2011 total cost Average cost no.
of employees Programme Programme 1: Administration Programme 2: Legislation and oversight Programme 4: Members Facilities total 196,070,275.16 146,641,797.34 3,612,793.00 346,324,865.50 263,535.32 272,062.70 301,066.08 267,432.33 Please note: Figures in this three tables are not the same because of late contract extension.
Programme 3 and Programme 5 are included in Programme 1. table 1.2 Vacancies by Division- 1 April 2010 to 31 March 2011 Division CSD HR ISD LOD NA NCOP OSTP total Posts Filled Vacant Vacancy rate 66 50 287 510 54 51 420 1 438 60 48 273 441 42 34 342 1 240 6 2 11 69 12 17 78 195 Please note figures in this three tables are not the same because of late contract extension 744 539 12 1295 9.1 4.0 3.8 13.5 22.2 33.3 18.6 13.6 annual rePOrt 2010/2011 49 table 1.3 Vacancies by section- 1 April 2010 to 31 March 2011 section Posts Filled Vacant Vacancy rate OFFICE OF THE SECRETARY TO PARLIAMENT SECTION STRATEGIC & BUSINESS PLANNING SECTION LEGAL SERVICES OFFICE UNIT INTERNAL AUDITING SECTION TREASURY ADVICE SECTION FINANCIAL MANAGEMENT OFFICE - FMO FMO SECTION FMO: SUPPLY CHAIN MANAGEMENT SECTION - SCM OFFICE OF SPEAKER: NATIONAL ASSEMBLY SECTION OFFICE OF CHAIRPERSON: NCOP SECTION PARLIAMENTARY COMMUNICATION SERVICES - PCS OFFICE OF REGISTRAR OF MEMBERS’ INTERESTS UNIT PROTECTION SERVICES SECTION INTERNATIONAL RELATIONS SECTION - IR PROTOCOL SECTION PARLIAMENTARY MILLENNIUM PROJECT SECTION - PMP NA: NATIONAL ASSEMBLY NA: HOUSE PLENARIES NA: RESEARCH & PARLIAMENTARY PRACTICE NA: TABLE ADMINISTRATION NCOP: NATIONAL COUNCIL OF PROVINCES NCOP: PROCEDURAL SERVICES NCOP: PROVINCIAL & MUNISIPAL LIAISON LOD: LEGISLATION & OVERSIGHT SECTION LOD: COMMITTEES SECTION LANGUAGE SERVICES SECTION INFORMATION SERVICES SECTION SUPPORT SERVICE: OFFICE OF LOGB CORPORATE SERVICES SECTION INFORMATION COMMUNICATION TECHNOLOGY INSTITUTIONAL SUPPORT SECTION DOCUMENTATION SECTION HOUSEHOLD SERVICES SECTION CATERING SECTION PARLIAMENTARY DEMOCRACY OFFICES SECTION HUMAN RESOURCES SECTION ORGANISATIONAL RESOURCING SECTION ORG LEARNING & DEVELOPMENT SECTION ORG WELLNES SECTION DONOR ACTIVITIES - SC PROJECTS - SC total 1
annual rePOrt 2010/2011 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA table 1.4 Annual turnover rates by salary band for the period 1 April 2010 to 31 March 2011 salary band total transfers terminations turnover A B C D E F total 180 298 652 145 17 2 1294 0 0 0 0 0 0 0 12 9 32 9 1 0 63 6.67 5.37 6.13 11.72 11.76 0.00 6.72 table 1.5 Annual turnover rates by occupational band for the period 1 April 2010 to 31 March 2011 occupational category Unskilled and Defined Decision Making Semi-skilled and Discretionary Decision Making Skilled, Academic, Jr. Management, Supervisors, Foremen and Superintendents Prof.
Qualified and Experienced Specialist and Mid-Management Senior Management Top Management Other total total employment 180 298 652 145 17 2 1 1 295 Appointments terminations turnover rate 1 25 75 16 4 0 0 121 12 9 32 9 1 0 1 63 6.67 5.37 6.13 11.72 11.76 0.00 100 6.80 table 1.6 reasons why employees are leaving Parliament by Programme - 2010/11 Division Deceased end of Contract Dismissal - Misconduct resignation retirement retirement early retirement: Due to Ill Health Grand total CsD Hr Ir&P IsD loD nA nCoP ostP Grand total annual rePOrt 2010/2011 51 table 1.7 reasons why employees are leaving Parliament by Programme - 2010/11 Program Death resignation end of contract Dismissal - operational Dismissal - misconduct retirement: due to ill health retirement total Programme 1: Administration Programme 2: Legislation and oversight Programme 4: Members Facilities total 05 0 0 05 11 15 0 26 09 03 12 table 1.8 Promotions by salary band - 2010/11 0 0 0 0 03 1 0 04 01 01 0 02 08 06 0 14 37 26 0 63 salary band no employee Band change notch change Band percentage notch percentage A B C D E F total table 1.9 Promotions by programme-2010/11 Programme no employees Band change notch change Band percentage notch percentage Programme 1: Administration Programme 2: Legislation and oversight Programme 4: Members Facilities total 713 473 12 1198 23 18 0 41 23 18 0 41 3.23 3.81 0.00 7.03 3.23 3.81 0.00 7.03 52 annual rePOrt 2010/2011 Program Death resignation end of contract Dismissal - operational Dismissal - misconduct retirement: due to ill health retirement total Programme 1: Administration Programme 2: Legislation and oversight Programme 4: Members Facilities total 05 0 0 05 11 15 0 26 0 0 0 0 03 1 0 04 table 1.8 Promotions by salary band - 2010/11
 salary band no employee Band change notch change Band percentage notch percentage 09 03 12 3 18 15 5 0 0 41 A B C D E F total 183 298 573 131 10 2 1197 table 1.9 Promotions by programme-2010/11 Programme 1: Administration Programme 2: Legislation and oversight Programme 4: Members Facilities total table 1.7 reasons why employees are leaving Parliament by Programme - 2010/11 3. eMPloyMent equIty PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA table 3.1 total number of employees (including employees with disabilities) in each of the following occupational categories as on 31 March2011 occupational level total Male African Male Coloured Male Indian Male White Male Female African Female Coloured Female Indian Female White Female 2 16 1 7 137 48 1 4 7 625 171 57 291 47 71 Top Management Senior Management Prof.
Qualified and Experienced Specialist and Mid- Management Skilled, Academic, Jr. Management, Supervisors, Foremen and Superintendents Semi- skilled and Discretionary Decision Making Unskilled and Defined Decision Making Programme no employees Band change notch change Band percentage notch percentage total Employees with disabilities 1240 9 279 2 0 1 6 6 3 1 17 0 0 0 0 5 10 60 40 362 4 149 15 69 1 119 695 2 annual rePOrt 2010/2011 53 4.
PerForMAnCe table 4.1 Performance rewards by salary band 1 April 2011 to 31 March2011.

occupational Category no.
of employees total employee percentage total Cost A B C D E F total 166 256 472 103 11 2 1,010 180 301 658 149 16 2 92.22 85.05 71.73 69.13 68.75 100.00 487, 140.04 960, 425.51 2 ,968, 187.07 1 ,336, 447.91 308 ,854.25 112, 415.00 1,306 77.34 6 ,173, 469.78 Avg Cost 2, 934.58 3, 751.66 6 ,288.53 12, 975.22 28, 077.66 56, 207.50 6 ,112.35 These figures include late payment and appeals table 4.2 Performance rewards of employees by programme (bonuses and notches) - 1 April 2010 to 31 March2011 Programme no.
of employees total employee percentage total Cost Avg Cost Programme 1: Administration Programme 2: Legislation and oversight Programme 4: Members Facilities 608 391 11 751 543 12 total 1,010 1,306 80.96 72.01 91.67 77.34 3, 709 ,118.82 6, 100.52 2, 394 ,695.52 6 ,124.54 69, 655.44 6 ,332.31 6, 173, 469.78 6, 112.35 These figures include late payment and appeals 54 annual rePOrt 2010/2011 A B C D E F total 166 256 472 103 11 2 1,010 180 301 658 149 16 2 92.22 85.05 71.73 69.13 68.75 100.00 487, 140.04 960, 425.51 2 ,968, 187.07 1 ,336, 447.91 308 ,854.25 112, 415.00 1,306 77.34 6 ,173, 469.78 Avg Cost 2, 934.58 3, 751.66 6 ,288.53 12, 975.22 28, 077.66 56, 207.50 6 ,112.35 These figures include late payment and appeals Programme no.
of total employees employee percentage total Cost Avg Cost Programme 1: Administration Programme 2: Legislation and oversight Programme 4: Members Facilities 608 391 11 751 543 12 3, 709 ,118.82 6, 100.52 2, 394 ,695.52 6 ,124.54 69, 655.44 6 ,332.31 total 1,010 1,306 6, 173, 469.78 6, 112.35 80.96 72.01 91.67 77.34 These figures include late payment and appeals 4.

PerForMAnCe table 4.1 Performance rewards by salary band 1 April 2011 to 31 March2011.
5. leAVe table 5.1 sick leave taken from 1 January 2010 to 31 December 2010 occupational Category no.

of employees total employee percentage total Cost salary band total days taken % of total days taken Medical Certificate % of medical cert.
submitted PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA A B C D E F total 1947 2437 3501 497 27 1 8410 23.15 28.98 41.63 5.91 0.32 0.01 100 500 548 686 76 4 0 1814 27.56 30.21 37.82 4.19 0.22 0.00 100 table 4.2 Performance rewards of employees by programme (bonuses and notches) - 1 April 2010 to 31 March2011 table 5.2 Capped leave, 1 January 2010 to 31 December 2010 salary Band total Days Average number of days taken per employee number of employees who took capped leave Average Capped leave per employee as at 31 December 2010 A B C D E F 67 44 168 44 0 0 total 323 0.21 0.14 0.52 0.14 0.00 0.00 1 15 7 29 7 0 0 58 0.26 0.12 0.50 0.12 0.00 0.00 1 table 5.3 leave payout for the period 1 January 2010 to 31 December 2011 reason total Amount (r’000) number of employee Average payment per employee Capped leave payouts on termination of service for 2010/2011 Current leave payouts on termination of service for 2010/2011 total 133 350.36 319 940.39 453 290.75 9 44 53 14 816.71 7 271.37 22 088.08 annual rePOrt 2010/2011 55 6. trAInInG table 6.1 training provided 1 April 201 to 31 March 2011 occupational Category Gender total employees Academic Courses skills Prog.
& other short courses total A A B B C C D D E E F total F M F M F M F M F M F JoB eVAluAtIon Table 7.1 Profile of job evaluated and re-evaluated - 1 April 2010 to 31 March 2011. evaluation re-evaluation no.

of post evaluated no.

of post validated no.

of posts declined no.

of appeals 1 no.

of post re- evaluated no.

of post validated no.


of posts declined no.

of appeals 1 occupational Band Top Management Senior Management Prof.

Qualified and Experience Specialist and Mid-Management Skilled, Academic, Jr. Management, Supervisors, Foremen and Superintendents.
Semi-skilled and Discretionary Decision Making Unskilled and Defined Decision Making total 26 26 Table 7.2 Profile of job evaluated and re-evaluated per division -1 April 2010 to 31 March 2011 .

evaluation re-evaluation Grade no.

of post evaluated no.

of post validated no.

of posts declined no.

of appeals no.

of post re-evaluated no.

of post validated no.

of posts declined no.


of appeals A B C D E F total annual rePOrt 2010/2011 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA Table 7.3 Profile of job evaluated per division - 1 April 2010 to 31 March 2011. evaluation re-evaluation Divisions no.

of post evaluated no.

of post validated no.

of posts declined no.

of appeals no.

of post re-evaluated no.


of post validated no.

of posts declined no.
of appeals OSTP NCOP NA LOD HR ISD CSD IR total annual rePOrt 2010/2011 57 8. lABour relAtIons The following collective agreements were entered into with trade unions within Parliament table 8.1 – Collective agreements, 1 April 2010 to 31 March 2011 Subject Matter Wage negotiations Date 27 October 2010 If there were no agreement, then use the following table A summary of the outcome of disciplinary hearings conducted within Parliament Table 8.2 – Misconduct and disciplinary hearings finalized, 1 April 2010 to 31 March 2011 outcomes of disciplinary hearings Correctional counselling Verbal warning 1st Written warning Final written warning Suspended Re-instatement (Compassionate grounds) Demotion Dismissal Not guilty Case withdrawn total number % of total 0 0 5 66 0 01 0 07 0 0 79 0 0 6 84 0 01 0 08 0 0 100 If there were no disciplinary hearing, then use the following table Disciplinary hearings – 2010/11 table 8.3 – types of misconduct addressed at disciplinary hearings type of misconduct number % of total Theft, bribery, corruption, defeating the ends of justice and fraud Insubordination Unauthorised absence Improper, disgraceful and unacceptable conduct at work Failure to comply with an instruction Inflammatory remarks regarding manager Late coming Failure to report for duty Total 6 1 4 3 71 1 1 1 88 6.8 1.1 4.5 3.4 80.6 1.1 1.1 1.1 100 table 8.4 – Grievance lodged for the period 1 April to 31 March 2011 Number of grievances resolved number 8 Number of grievance not resolved 46 (include previous grievances from all quarters) Total number of grievances lodged 17 % of total 11.2 64.7 23.9 table 8.5 – Dispute lodged for the period 1 April to 31 March 2011 number % of total Number of disputes upheld Number of disputes dismissed Total number of disputes lodged 0 0 0 (Others are pending) 58 annual rePOrt 2010/2011 PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA 9. oCCuPAtIonAl rIsk HeAltH ProMotIon AnD HIV / AIDs ProGrAMMe steps taken to reduce the risk of occupational exposure Categories of employees identified to be at high risk of contracting HIV and related diseases (if any) key steps taken to reduce the risk Sister in the Clinic First Aiders Apply Universal precautions e.g.
use gloves, use of sharps containers, correct method of giving injections and finger pricks.

If the unfortunate needle stick happens, the Post Exposure Prophylaxis treatment will be given to her.

First Aiders have been nominated by line groups and have been sent for training which includes how to apply universal precautions.

Details of Health Promotion and HIV and AIDs Programmes question yes no Details, if yes 1.
Has Parliament designated a member of SM to implement Health Promotion and HIV and AIDS Programmes?

If so, provide her/his name and position.

2.

Does Parliament have a dedicated unit or has it designated specific staff members to promote the health and well being of your employee?

If so, indicate the number of employees who are involved in this task and the annual budget that is available for this purpose.

X X 3.
X X 3.

Has Parliament introduced an Employee Assistance or Health Promotion Programme for your employees?

if so, indicate the key elements/services of this programme.

X 4.

Has Parliament established (a) committee(s) If so, Please provide the names of the members of the committee and the stakeholder(s) that they represent X 5.

Has Parliament reviewed its employment policies and practices to ensure that these do not unfairly discriminate against employees on the basis of their HIV status?
If so, list the employment policies/ practices so reviewed 6.

Has Parliament introduced measures to protect HIV-positive employees or these perceived to be HIV-positive from discrimination?

If so, list the key elements of these measures 7.

Does Parliament encourage its employees to undergo Voluntary Counseling and Testing (VCT)?

If so, list the results that you have achieved.

1.

Has Parliament developed measures/indicators to monitor and evaluate the impact of its health promotion programmes?
If so, list these measures/indicators X X X X Dr. S. Paruk Division Manager: Human Resources Parliament has a dedicated Wellness Unit for promoting Health and Wellbeing of employees.

It consists of 4 internal employees and an outsourced service provider.
The Unit has the annual Budget is R2.5m Parliament has a Wellness Programme which focuses mainly on: • • • • • • • • HIV/AIDS response strategy Policies and Procedures Awareness and education Prevention Programmes Consultation and advice Counseling Case Management Sporting codes HIV/AIDS Policy HIV/AIDS policy, awareness campaigns.

External Service Provider for Comprehensive Counseling has been contracted to provide support services (ICAS).
strategy Parliament’s HIV/AIDS promotes participation on VCT programme.

The VCT programme is done on the premises and it is provided by external service provider.

Employees are encouraged to use external facilities as well.

Monthly and quarterly reports.

Attendance to workshops, VCT and psychosocial counseling sessions.
annual rePOrt 2010/2011 59 7. rePOrt Of the audit cOmmittee 60 annual rePOrt 2010/2011 FINANCIAL STATEMENTS 7. rePOrt Of the audit cOmmittee We are pleased to present our report for the financial year ended 31 March 2011.

Audit Committee Members and Attendance The Audit Committee operates within formally approved terms of reference.

It met five (5) times and consists of the members listed below: name of Member number of Meetings Attended Comment C. Choeu (Chairperson) D. Coovadia V. Nondabula N.Z.
Qunta Late Hon.

A. Rantsolase (MP – National Assembly) Hon.

T. Chaane (MP – NCOP) Hon.

J.D.

Thibedi (MP – National Assembly) Audit Committee Responsibility 5 5 5 4 2 1 1 Appointed in January 2011 to replace the late Honourable A. Rantsolase We report that we have operated and performed our oversight responsibilities to the Parliament of the Republic of South Africa (Parliament) independently and objectively in compliance with Section 48 of the Financial Management of Parliament Act, 2009 (Act No.
10 of 2009) (FMPA).

Furthermore, we have adopted appropriate formal terms of reference (charter), and discharged all our responsibilities as contained therein and regulated our affairs in compliance with the charter.

The effectiveness of Internal Control In line with the Financial Management of Parliament Act (FMPA) and King III Report on Corporate Governance requirements, Internal Audit provided the Audit Committee and management with assurance that internal controls are adequate and effective.
Management took effective steps to establish a Risk Management Committee (RMC) and conducted a comprehensive and integrated risk analysis during the year to ensure that all risks are identified and managed across the institution.

annual rePOrt 2010/2011 61 Furthermore, on an ongoing basis, management reviewed the state of readiness of the institution for the statutory audit and implemented an Improvement of Financial Management Environment project.
This was supplemented with an Anti-Fraud Awareness Campaign and training in the area of fraud/corruption for all employees.

These initiatives resulted in timeous identification and closing of gaps as well as strengthening of the internal control system.

We have reviewed the Auditor-General South Africa (AGSA) Final Management Report and are satisfied that management has a plan to address the gaps reflected therein.
Accordingly, we can report that the system of internal control both on financial statements and performance information for the period under review was satisfactory.

Internal Audit We are satisfied that the Internal Audit function is operating effectively and that it has addressed the risks pertinent to the institution in its audits.

During the year, we made recommendations to management to sufficiently capacitate Internal Audit.
Although we acknowledge the intervention taken by the Accounting Officer to appoint temporary audit managers, we are however concerned with the pace at which capacitation is implemented.
The quality of in year management and monthly/quarterly reports submitted in terms of the PFMA and the Division of Revenue Act (DORA) Management has taken bold steps to establish linkage between objectives, budget, risk and performance management and reporting through the development of an Annual Performance Plan (APP) in compliance with the FMPA.

Furthermore, management has put in place an effective mechanism to collect, analyse and monitor predetermined objectives towards sustainability reporting.
We have reviewed and we are satisfied with the content and quality of the In Year Monitoring and Management (IYM) reports submitted to National Treasury by the Accounting Officer and monitoring and evaluation of performance by management during the year under review.
Evaluation of audited Annual Financial Statements The framework for the preparation of financial statements changed from the modified accrual basis to preparation in accordance with Generally Recognised Accounting Practice (GRAP) in compliance with the FMPA.
The Committee has reviewed: • The audited Annual Financial Statements and the Audit Report to be included in the Annual Report; • The accounting policies and practices and changes thereof; • Parliament’s compliance with operational, legal and regulatory 62 annual rePOrt 2010/2011 FINANCIAL STATEMENTS provisions; and • Adjustments made during the audit based on the AGSA’s findings and recommendations.

The outcome has been discussed and agreed with management and the AGSA.
Auditor-General South Africa We have met with the AGSA to ensure that there are no unresolved issues at the end of the audit and once again, the AGSA has issued an unqualified audit opinion and we are satisfied with the audit opinion.

We would like to take this opportunity to congratulate the Executive Authority, Accounting Officer, management and Internal Audit for the good audit results and the AGSA for the professional manner in which the audit was handled.
Chairperson of the Audit Committee Date: 30 July 2011 annual rePOrt 2010/2011 63 8. rePOrt Of the auditOr-general 64 annual rePOrt 2010/2011 FINANCIAL STATEMENTS 8. rePOrt Of the auditOr-general REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT OF VOTE NO.2: PARLIAMENT OF THE REPUBLIC OF SOUTH AFRICA REPORT ON THE FINANCIAL STATEMENTS Introduction 1.
I have audited the accompanying financial statements of Parliament of the Republic of South Africa (Parliament), which comprise the statement of financial position as at 31 March 2011, the statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory information, as set out on pages 90 to 136.

Accounting officer’s responsibility for the financial statements 2.
The accounting officer is responsible for the preparation and fair presentation of these financial statements in accordance with South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Financial Management of Parliament Act, 2009 (Act No.

10 of 2009) (FMPA), and for such internal control as management determines necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor-General’s responsibility 3.

4.

As required by section 188 of the Constitution of the Republic of South Africa, 1996 (Act No.

108 of 1996), section 4 of the Public Audit Act of South Africa, 2004 (Act No.

25 of 2004) (PAA) and section 58 of the FMPA, my responsibility is to express an opinion on these financial statements based on my audit.
I conducted my audit in accordance with International Standards on Auditing and General Notice 1111 of 2010 issued in Government Gazette 33872 of 15 December 2010.

Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

annual rePOrt 2010/2011 65 5.


An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.

The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

Opinion 6.
Opinion 6.

In my opinion, the financial statements present fairly, in all material respects, the financial position of Parliament of the Republic of South Africa as at 31 March 2011, and its financial performance and cash flows for the year then ended in accordance with SA Standards of GRAP and the requirements of the FMPA.

Emphasis of matters I draw attention to the matters below.

My opinion is not modified in respect of these matters: Restatement of corresponding figures 7.
As disclosed in note 38 to the financial statements, the corresponding figures for 31 March 2010 have been restated as a result of a change in accounting framework, from a modified accrual basis to SA Standards of GRAP.

Material Impairments 8.

As disclosed in Note 18 to the financial statements, an amount of R12 098 000 was written off as an irrecoverable trade debtor.

This amount relates to the misuse of travel warrants by members which was fully disclosed in previous financial years.
Additional matter Unaudited supplementary schedules 9.

The supplementary information set out on pages 78 to 89 does not form part of the annual financial statements and is presented as additional information.

I have not audited these schedules and accordingly I do not express an opinion thereon.

66 annual rePOrt 2010/2011 REPORT ON OTHER LEGAL AND REGULATORy REqUIREMENTS FINANCIAL STATEMENTS 10.
In accordance with the PAA and in terms of General notice 1111 of 2010, issued in Government Gazette 33872 of 15 December 2010, I include below my findings on the annual performance report as set out on pages 13 to 48 and material non-compliance with laws and regulations applicable to Parliament of the Republic of South Africa.

Predetermined objectives 11.

There are no material findings on the annual performance report.

Compliance with laws and regulations Procurement and contract management 12.

13.
13.

Goods and services were not procured by means of a competitive bidding process as per the requirements of paragraph 11(d) of Parliament’s Policy for Supply Chain Management primarily due to orders being split to avoid the tender process.

Goods and services were procured without the use of the 80/20 preference point system as per the requirements of paragraph 3(1) of the Preferential Procurement Policy Framework Act, 2000 (Act no.

5 of 2000)(PPPFA).

14.


The above non compliance has resulted in irregular expenditure of R10 million being incurred as disclosed in note 31.3 of the annual financial statements.

INTERNAL CONTROL 15.

In accordance with the PAA and in terms of General notice 1111 of 2010, issued in Government Gazette 33872 of 15 December 2010, I considered internal control relevant to my audit, but not for the purpose of expressing an opinion on the effectiveness of internal control.
The matters reported below are limited to the significant deficiencies that resulted in the basis for the findings on compliance with laws and regulations identified.

Financial and performance management 16.

The supply chain management unit did not consistently perform a proper review before final approval of awards, to confirm that officials complied with the PPPFA and the requirements of the SCM policies.
Furthermore, the skills of the officials involved in the supply chain process should be further enhanced to identify risks and prevent non compliance to the SCM policies.

annual rePOrt 2010/2011 67 Other reports Investigations in progress 17.

Investigations have been initiated by the accounting officer to determine whether the irregular expenditure disclosed in the financial statements should be recovered.

Cape Town 30 July 2011.


68 annual rePOrt 2010/2011 FINANCIAL STATEMENTS annual rePOrt 2010/2011 69 9. rePOrt bY the accOunting Officer tO the eXecutiVe authOritY 70 annual rePOrt 2010/2011 FINANCIAL STATEMENTS 9. rePOrt bY the accOunting Officer tO the eXecutiVe authOritY 1.
General review of the state of affairs • To engage in, participate in and oversee international relations; Budget The aim of the vote is: • To provide support services required by Parliament to fulfil its constitutional functions; • To enable representative political parties to secure administrative support and service constituents; • To provide Members of Parliament with the facilities needed to enable them to discharge their duties in an effective and efficient manner.
The original budget allocation for Parliament amounted to R1 571 000 000 for the financial year under review and there was additional funding of R22 400 000 provided by National Treasury through the Adjustment Budget.

Parliament currently has five (5) programmes to ensure alignment of the strategic objectives to the budget.

The five (5) programmes that the Institution adopted are listed in the table below.
The administration programme was essentially aligned to the core objectives of the institution which are: These core objectives are mainly funded in programmes 2 and 3.

As members of Parliament are the major stakeholders of the Institution it is important that the funding towards enabling members to discharge their duties is reflected, hence the programme 4.
In terms of S 57(2) (c) of the Constitution of the Republic of South Africa, Parliament has the duty to provide for financial and administrative assistance to each party represented in the Assembly, in proportion to its representation, to enable the party and its leader to perform their functions in the Assembly effectively.

To this end, programme 5 reflects transfers made to political parties.
Basis of Accounting Parliament has in accordance with the requirements of the Financial Management of Parliament Act, 2009 changed its basis of accounting from a modified accrual basis (approved by the Office of the Accountant General) to full accrual accounting based on standards of generally recognised accounting practices (GRAP).
• To pass laws (Legislation); • To oversee and scrutinise executive action (Oversight); • To facilitate public participation and involvement; • To participate in, promote and oversee The accounting policies and notes to the financial statements set out the processes and procedures used for the migration from modified accrual to full accrual accounting.
The adjusted appropriation was made up as follows and is compared with the final co-operative government; appropriation of prior years: annual rePOrt 2010/2011 71 table 1: Programme 2010/11 r’000 % Increase/ (Decrease) 2009/10 r’000 2008/09 r’000 2007/08 r’000 1.

Administration 2.

Legislation and Oversight 3.

Public and International Participation 4.

Members Facilities 5.
Associated Services sub-total Direct charge: National Revenue Fund - Members Remuneration total 346 279 300 068 79 429 193 931 281 914 1 201 621 392 679 1 594 300 18.5% 28.8% (19.6)% (14.1)% From the table it is evident that the budget for Parliament for the 2010/11 has increased by 7.4% from the 2009/10 financial year.
In addition to the above Parliament utilised an amount of R45 656 000 of retained funds of previous years to fund the upgrading of various offices and meeting rooms by the Department of Public Works.

The use of these funds was previously approved by the Treasury of Parliament.

The above additional funds and virements between programmes recorded after the determination of the adjusted appropriation had the following result: Programme 1.

Administration 2.

Legislation and Oversight 3.


Public and International Participation 4.

Members’ Facilities 5.
Associated Services Transfer from Retained Earnings sub-total Direct Charge: National Revenue Fund total Adjusted appropriation 2010/11 r’000 Virements r’000 Final Appropriation 2010/11 r’000 77 011 (23 995) 7 042 (14 402) (45 656) 346 279 300 068 79 429 193 931 281 914 1 201 621 392 679 1 594 300 423 290 276 073 86 471 179 529 281 914 (45 656) 1 201 621 376 678 1 594 300 The transfer from retained funds and the virements were deemed necessary to enable functionaries to achieve the targets as set out in the strategic plan of the Institution.
Further detail can be obtained from the Appropriation Statement and the Notes to the Appropriation Statement as included in the Annual Financial Statements.

It should further be noted that the transfers from Retained Earnings were utilised for payment of the upgrading of offices and meeting rooms used by the institution.

Further clarity relating to the changes in Retained Earnings is provided under the explanation on under / (over) expenditure.
Over / Under Expenditure By comparing the actual expenditure to the budget allocation the institution has recorded an underspending for the financial year under review.

The underspending relates primarily to the spending on compensation for Members.
A comparison of the spending against voted funds for the past four financial years show that Parliament has in the three financial years from 2007/8 spend the full allocated budget with only a surplus on the direct charge against the National Revenue fund showing an under-spending in the current and 2007/08 and 2008/09.
72 annual rePOrt 2010/2011 FINANCIAL STATEMENTS 2010/11 r’000 2009/10 r’000 2008/09 r’000 2007/08 r’000 Spending on vote –surplus/(overspent) 16 525 0 6 883 1 672 retained earnings Approved for spending for 2010/11 Retained Funds approved in prior years for multi-year projects Less: Spending per Appropriation Statement Available for use in future years 110 201 (45 656) 64 545 From Table 1 above it is clear that the budget for program 1 was insufficient and funds were re-directed from the remaining programmes.
The additional funds were required to strengthen the capacity in Internal Audit and the Finance Management Office as well as funding a project for improving the financial management environment of Parliament.

Additional funding for the enhanced participation in international fora was also required and underspending in other areas was used for this activity.
The requests for use of retained funds were lodged with and approved by the Speaker of the National Assembly and Chairperson of the National Council of Provinces, as Executive Authority acting together as the Treasury of Parliament.

Spending Trends on voted funds Final Appropriation Expenditure % Spent 2010/11 r 2009/10 r 2008/09 r 2007/08 r 1 594 300 1 577 775 99.0% 1 484 680 1 478 732 99.6% 1 224 840 1 217 957 99,4% 1 078 094 1 075 678 99,8% 2.
Services rendered by the institution The vote of Parliament comprises of the five programmes, namely: Programme 1: Administration Provide strategic leadership, institutional policy, overall management, administration and corporate services to the executive, management and staff of Parliament.

Programme 2: Legislation and Oversight Fulfil Parliament’s legislative and oversight functions and provide auxiliary services to enable the institution to function smoothly.
Programme 3: Public and International Participation Fulfil Parliament’s public participation and international participation role and provide support to undertake such activities.

Programme 4: Members’ Facilities Provide telephone, travel and other facilities for MP’s and fund medical aid contributions and travel facilities for certain former members.
Programme 5: Associated Services Provide financial support to political parties represented in Parliament and pay membership fees to certain inter-parliamentary bodies.

annual rePOrt 2010/2011 73 Tariff policy Tariff charged for catering is done as per agreement with the service provider to whom this service has been outsourced, and other internal services are rendered at a agreed upon rate as per the catering policy.
Free services No free service per definition is provided by Parliament to the members or any other bodies.

3.

Capacity constraints Through constant monitoring the Institution managed to spend satisfactorily and thus discharged its duties in an effective and efficient manner.

To this end no major capacity constraints can be highlighted for the 2010/11 financial year.

4.
4.

Utilisation of donor funds Donor funds received in the prior year as part of a country agreement between the Republic of South Africa and the European Union was utilised by Parliament to set up the support infrastructure which will assist Parliament and the nine Provincial Legislatures who are the beneficiaries through a sub-agreement for the Legislative Sector.
Parliament has recognised the full initial transfer as income in the financial statements as there are no conditions attached to the agreement.

As part of future transfers in terms of the agreement only the portion allocated for use by the institution will be recognised in the financial statements.

The balance of the funds will be transferred via Parliament for use within the various legislatures.
Funds available will be determined as per the agreement, provided the objectives are achieved as per the agreement.

5.
5.

Organisations to whom transfer payments have been made Transfer payments have been made to political parties for the following reasons: • Political party support: Financial support to political parties represented in Parliament; • Constituency support: Financial support for constituency offices of political parties represented in Parliament; • Party Leadership support: Financial support to leaders of political parties represented in Parliament.

6.
6.

Corporate governance arrangements The Audit Committee has been functional for the year under review and based on a recommendation from this body, the co- sourcing agreement with Ernst & Young which was previously extended till 30 June 2010 was renewed in order to complete outstanding matters and ensure the transfer of knowledge and skills to the Institution.

The Internal Audit Office has also been functioning and various audits and follow-up audits were conducted.
The Risk Management Committee for the Institution has been re-constituted and is fully functional.

A Risk Management Framework has been developed, top ten 74 annual rePOrt 2010/2011 FINANCIAL STATEMENTS risks for the institution as well as the various divisions have been identified and parliament is currently in the process of putting the necessary processes and procedures in place to mitigate these risks.
The Institution has been investigating and is in the process of procuring suitable software that would ensure that risks are managed in an efficient and effective manner.

10.

Exemptions and Deviations received from the National Treasury Parliament’s migration to a recognised basis of accounting means that no exemptions/ deviations were required from National Treasury this year.

11.

Other 7.
11.

Other 7.

Asset Management Liability for Ex-Members’ Medical Aid Parliament manages its assets in accordance Parliament’s change of basis of accounting with its Fixed Asset policy as approved in to full accrual utilising standards of GRAP July 2005 and the ERP Fixed Asset Module.

and in particular the principles of GRAP 25 requires that disclosure be made regarding the liability of the institution’s portion of the contributions for Continuation Members (Ex- Members of Parliament).
An actuarial valuation has been obtained which includes information relating to both the current ex-Members as well as current serving Members who are members of the medical aid (PARMED).

The effect of disclosure of this liability in the financial statements is that Parliament currently has an accumulated deficit but due to this being a long-term valuation there is no impact on Parliament’s ability to meet it’s obligations as they fall due.
Further information is available in note 26 of the annual financial statements.

Parliament has changed the manner in which assets are disclosed in the financial statements by bringing the classification of assets in line with generally recognised accounting practice (GRAP) standard 17 which requires that it will be the expected economic life rather than the value which determines whether an item is an asset or not.
This is in compliance with the Financial Management of Parliament Act, 2009 which requires that Parliament’s annual financial statements be prepared on an accrual basis of accounting using GRAP standards.

8.

Events after the reporting date There were no events after reporting date.

9.

Performance Information Where feasible performance indicators are identified during the planning phases of the Institution.

Performance achievements are reported on a monthly basis.
annual rePOrt 2010/2011 75 Alleged Misuse of Members’ Travel Warrants Parliament in accordance with its debt collection policy and processes has reviewed and identified that the outstanding amount complete the valuation of assets before the change in accounting policy noted in point 7 above were approved.
The outcome of the revaluation was not used to prepare the financial statements previously disclosed in the financial statements as the values of the assets were does not meet the definition of an asset anymore (as per International Accounting Standards (IAS) 32 and 39 and GRAP 1) as not changed.

The cost of the revaluation will form the basis of an investigation into possible the chances of any future economic benefit fruitless and wasteful expenditure.
flowing to the institution was virtually The amount paid for the service impossible.

The institution also recognised was R645 895.60. the fact that all avenues of pursuing the outstanding amounts had been exhausted, this included liquidation of all the travel agents and litigation against other debtors.

An independent legal opinion confirming that it will not be economically feasible to continue to pursue settlement of the outstanding amounts through outside legal resources confirmed the above.
The Executive Authority of Parliament has approved that the outstanding amount be treated as a write-off in the accounts of Parliament due to the above.

• Interest of R3 840.76 paid to Telkom for late payment of internet access accounts.

• Insurance excess of R112 194.33 paid to CABS Car Hire for replacement of a gearbox of a hired vehicle after the driver continued driving the vehicle after an oil leak was noticed.
• Payment of R143 400 to Cape Town Lodge for accommodation cancelled outside of the agreed time.

The accounting effect of this is disclosed under note 18 in the annual financial statements.
a) Additional items emanating from procurement in the current year: Investigation into possible fruitless and wasteful and irregular expenditure Instances of possible fruitless and wasteful expenditure under investigation, disclosed in note 31 of the annual financial statements: a) Items still under investigation from the previous year: • Parliament appointed a professional valuation concern to 1.
Cancellation fees for the following: Early cancellation of an agreement to provide wireless internet and other access – R146 686 Cancellation of hire of facility for a workshop – R11 400 Cancellation of bookings for an international trip – R12 825 • • • 76 annual rePOrt 2010/2011 FINANCIAL STATEMENTS Instances of possible irregular expenditure under investigation: • Goods and services to the value of R10 112 102.00 where the proper procurement processes were not followed.
Preliminary investigations have so far indicated that in probably all instances Parliament had benefitted from either the goods or services which were procured but that the proper processes as included in the policies and procedures of the institution were not followed.

• Goods and services of the prior year to the value of R1 914 557.88 where the procurement processes were not followed.

SCOPA resolutions There were no formal SCOPA resolutions issued to Parliament for the financial year under review.
Approval The Annual Financial Statements as set out from page 13 to 50 have been approved by the Accounting Officer.
------------------------------------------- Mr. Z A Dingani Secretary to Parliament 20 july 2011 annual rePOrt 2010/2011 77 ROWS ONLy STAy WITH: APPROPRIATION STATEMENTS Appropriation Statement for the year ended 31 March 2011 Appropriation Per Programme 2010/11 Adjusted Appropriation r’000 shifting of Funds r’000 Virement Final Appropriation Actual expenditure Variance r’000 r’000 r’000 r’000 339,737 1,830 69,491 411,058 411,058 6,542 (1,830) 7,520 12,232 12,168 - 64 (45,656) (45,656) (45,656) expenditure as % of final appropriation % 2009/10 (restated) Final Appropriation Actual expenditure r’000 r’000 100.0% 338,107 344,526 99.5% 15,442 16,042 (22,000) 298,474 (1,471) (23,995) 273,008 267,634 5,374 98.0% 227,315 208,313 1,594 1,471 3,065 3,065 - 100.0% 5,676 2,044 1.
Administration Current payment transfers and subsidies Payment for capital assets Changes in retained revenue 2. legislation and oversight Current payment transfers and subsidies Payment for capital assets - - - - 53 440 2.233 2,908 2,855 7,042 76,081 (1,122) (2,908) 281,914 191,698 (13,280) 3.

Public and International Participation Current payment transfers and subsidies Payment for capital assets 4.

Members’ Facilities Current payment transfers and subsidies Payment for capital assets 5.
Associated services Current payment transfers and subsidies Payment for capital assets subtotal statutory Appropriation Current payment transfers and subsidies Payment for capital assets Payment for financial assets totAl 1,594,300 Reconciliation with statement of financial performance ADD Departmental receipts Local and foreign aid assistance Actual amounts per statement of financial performance (total revenue) ADD Local and foreign aid assistance Post-retirement medical aid contributions Actual amounts per statement of financial performance (total expenditure) 1,201,621 392,679 - - - - 85,978 86,022 10,748 100.1% 493 493 100.0% 94,580 2,756 1,596 71,118 2,722 391 178,418 177,395 1,023 99.4% 183,127 169,355 1,111 1,111 - 100.0% 2,116 18 281,914 281,925 (11) 100.0% 258,686 258,743 1,201,621 1,240,871 (28,458) 103.3% 1,108,001 1,072,722 392,679 376,154 16,525 95.8% 398,134 395,675 1,594,300 1,617,025 (11,933) 101.4% 1,506,135 1,468,397 31,752 1,626,052 10,539 110,860 1,738,424 28,671 55,190 1,589,996 6,866 34,346 1,509,609 78 annual rePOrt 2010/2011 Appropriation Statement for the year ended 31 March 2011 FINANCIAL STATEMENTS Appropriation Per Economic Classification 2010/11 2009/10 (restated) Adjusted Appropriation shifting of Funds Virement Final Appropriation Actual expenditure Variance expenditure as % of final appropriation Final Appropriation Actual expenditure r’000 r’000 r’000 r’000 r’000 r’000 % r’000 r’000 Current payments Compensation of employees Goods and services Interest and rent on land transfers and subsidies Foreign governments and international organisations Non-profit institutions Households Gifts and donations Payments for capital assets Buildings and other fixed structures Machinery and equipment Software & other intangible assets Changes in retained revenue 475,440 (10,693) (6,472) 458,275 456,391 1,884 99.6% 403,374 398,387 430,550 13,221 46,416 490,187 485,718 4,469 99.1% 439,753 394,925 - - 2,908 (2,908) 281,914 - - - - - - - - - - - - - - 2,756 2,772 281,914 281,925 (11) 100.0% 258,686
 258,743 10,809 37 5,712 16,558 16,494 343 - 343 343 64 - 99.6% 25,432 17,552 100.0% - 343 - total 1,201,621 - - (45,656) (45,656) - (45,656) (22,000) - 1,201,621 1,240,871 (39,250) 103.3% 1,108,001 1,072,722 annual rePOrt 2010/2011 79 Direct changes against the national/ Provincial revenue Fund List all direct charges against the National/ Provincial Revenue Fund President and Deputy President salaries Member of executive committee / parliamentary officers Judges and magistrates salaries Sector education and training authorities (SETA) National Skills Fund Appropriation Statement for the year ended 31 March 2011 statutory Appropriation 2010/11 2009/10 (restated) Adjusted Appropriation shifting of Funds Virement Final Appropriation Actual expenditure Variance expenditure as % of final appropriation Final Appropriation Actual expenditure r’000 r’000 r’000 r’000 r’000 r’000 % r’000 r’000 392,679 - - - 392,679 376,154 16,525 95.8% 311,041 356,884 - 392,679 376,154 16,525 95.8% 311,041 356,884 total 392,679 Statutory Appropriation per economic classification 2010/11 2009/10 Adjusted Appropriation shifting of Funds Virement Final Appropriation Actual expenditure Variance expenditure as % of final appropriation Final Appropriation Actual expenditure r’000 r’000 r’000 r’000 r’000 r’000 % r’000 r’000 Current payments Compensation of employees Goods and services total 392,679 392,679 - - - - 392,679 376,154 392,679 376,154 - - - - 311,041 356,884 311,041 356,884 80 annual rePOrt 2010/2011 FINANCIAL STATEMENTS Appropriation Statement for the year ended 31 March 2011 Detail per programme 1 - Administration 2010/11 Programme per subprogramme Adjusted Appropriation r’000 shifting of Funds r’000 Virement Final Appropriation Actual expenditure Variance r’000 r’000 r’000 r’000 2009/10 (restated) expenditure as % of final appropriation % Final Appropriation Actual expenditure r’000 r’000 100.0% 22,080 26,615 100.0% 388 181 100.0% 14,037 16,920 100.0% 36 33 100.0% 173,892 183,893 -
 - - - 31,435 31,435 417 417 18,786 18,786 34 34 62,803 239,851 239,851 - - - - - 7,520 10,614 10,550 64 99.4% 14,056 12,617 1.1 Office of the speaker Current payment transfers and subsidies Payment for capital assets 1.2 Office of the Chairperson Current payment transfers and subsidies Payment for capital assets 1.3 Office ofthe secretary Current payment transfers and subsidies Payment for capital assets 1.4 Corporate services Current payment transfers and subsidies Payment for capital assets 1.5 Institutional support Current payment transfers and subsidies Payment for capital assets Changes in retained revenue total 35,092 (3,657) 372 45 17,471 1,315 60 (26) 177,048 3,094 - - 42,664 212 3,016 (2,195) - - 346,279 - - - - 42,876 42,876 821 821 67,462 3,960 6,688 78,110 78,110 100.0% 41,563 41,231 100.0% 1,370 1,693 100.0% 86,535 75,867 - - - - 346 - 346 346 100.0% 192 (45,656) (45,656) - (45,656) - (22,000) 31,355 377,634 423,226 (45,592) 112.1% 332,149 359,968 annual rePOrt 2010/2011 81 918 - Appropriation Statement for the year ended 31 March 2011 Appropriation per Economic classification 2010/11 2009/10 (restated) economic classification Adjusted Appropriation r’000 shifting of Funds r’000 Virement Final Appropriation Actual expenditure Variance r’000 r’000 r’000 r’000 expenditure as % of final appropriation % Final Appropriation Actual expenditure r’000 r’000 Current payments Compensation of employees Goods and services Interest and rent on land Payment for capital assets Buildings and other fixed structures Machinery and equipment Software and other intangible assets Changes in retained revenue total 236,836 (19,838) - 216,998 216,998 102,901 20,982 70,177 194,060 194,060 6,542 (1,487) 6,834 11,889 11,825 - - 64 - 100.0% 213,990 199,082 100.0% 124,142 145,444 99.5% 16,017 15,099 343 - - - 346,279 - - 343 - 343 343 100.0% - (45,656) (45,656) - (45,656) - (22,000) 31,355 377,634 423,226 (45,592) 112.1% 332,149 359,968 82 annual rePOrt 2010/2011 Appropriation
 Statement for the year ended 31 March 2011 FINANCIAL STATEMENTS Detail per programme 2 – legislation and oversight 2010/11 2009/10 (restated) Programme per subprogramme Adjusted Appropriation shifting of Funds Virement Final Appropriation Actual expenditure Variance expenditure as % of final appropriation Final Appropriation Actual expenditure r’000 r’000 r’000 r’000 r’000 r’000 % r’000 r’000 2.1 national Assembly Current payment Transfers and subsidies Payment for capital assets 2.2 national Council of Provinces Current payment Transfers and subsidies Payment for capital assets 2.3 legislation and oversight Current payment Transfers and subsidies Payment for capital assets total 22,637 (3,843) 238 19 28,463 2,055 265 (91) - - - - 18,794 18,794 257 257 - - 100.0% 17,098 16,937 100.0% 21 26 30,518 30,544 (26) 100.1% 22,785 22,783 174 174 - 100.0% 605 164 247,374 317 (23,995) 223,696 218,296 5,400 97.6% 187,432 168,593 1,091 1,543 - 2,634 2,634 - 300,068 - (23,995) 276,073 270,699 5,374 100.0% 98.1% 5,050 1,854 232,991 210,357 annual rePOrt 2010/2011 83 Appropriation Statement for the year ended 31 March 2011 economic classification Adjusted Appropriation shifting of Funds Virement Final Appropriation Actual expenditure Variance 2010/11 2009/10 (restated) Final Appropriation Actual expenditure expenditure as % of final appropriation r’000 r’000 r’000 r’000 r’000 r’000 % r’000 r’000 Current payments Compensation of employees Goods and services Payment for capital assets Buildings and other fixed structures Machinery and equipment Software and other intangible assets total 187,032 (1,471) (6,472) 179,089 177,189 1,900 98.9% 152,188 143,795 111,442 - (17,523) 93,919 90,445 3,474 96.3% 75,100 64,518 1,594 1,471 - 300,068 - - - - 3,065 3,065 - - - - 100.0% 5,703 2,044 - - - (23,995) 276,073 270,699 5,374 98.1% 232,991 210,357 84 annual rePOrt 2010/2011 Appropriation Statement for the year ended 31 March 2011 FINANCIAL STATEMENTS Detail per programme 3 – Public and
 International Participation 2010/11 2009/10 (restated) Programme per subprogramme Adjusted Appropriation shifting of Funds Virement Final Appropriation Actual expenditure Variance expenditure as % of final appropriation Final Appropriation Actual expenditure r’000 r’000 r’000 r’000 r’000 r’000 % r’000 r’000 3.1 Public Affairs Current payment Transfers and subsidies Payment for capital assets 3.2 International relations Current payment Transfers and subsidies Payment for capital assets 41,275 4,684 7,042 53,001 53,043 (42) 100.1% 52,426 52,411 325 (107) 34,806 (1,829) 2,908 (2,908) 115 160 - - - - 218 218 - 100.0% 1,528 303 32,977 32,979 (2) 100.0% 42,154 18,707 - 275 - 275 - - - 2,756 2,772 100.0% 68 88 total 79,429 - 7,042 86,471 86,515 (44) 100.1% 98,932 74,281 annual rePOrt 2010/2011 85 Appropriation Statement for the year ended 31 March 2011 2010/11 2009/10 (restated) economic classification Adjusted Appropriation shifting of Funds Virement Final Appropriation Actual expenditure Variance expenditure as % of final appropriation Final Appropriation Actual expenditure r’000 r’000 r’000 r’000 r’000 r’000 % r’000 r’000 Current payments Compensation of employees Goods and services transfers & subsidies International organisations Payment for capital assets Machinery and equipment total 26,244 550 - 26,794 26,810 49,837 2,305 7,042 59,184 59,212 2,908 (2,908) 440 79,429 53 - - - - - 493 493 (16) (28) - - 100.1% 13,492 22,397 100.0% 81,088 48,721 - 2,756 2,772 100.0% 1,596 391 7,042 86,471 86,515 (44) 100.1% 98,932 74,281 86 annual rePOrt 2010/2011 Appropriation Statement for the year ended 31 March 2011 FINANCIAL STATEMENTS Detail per programme 4 – Members’ Facilities 2010/11 2009/10 (restated) Programme per subprogramme Adjusted Appropriation shifting of Funds Virement Final Appropriation Actual expenditure Variance expenditure as % of final appropriation Final Appropriation Actual expenditure r’000 r’000 r’000 r’000 r’000 r’000 % r’000 r’000 4.1. national Assembly
 Members’ Facilities Current payment Transfers and subsidies Payment for capital assets 4.2 national Council of Provinces Members’ Facilities Current payment Payment for capital assets total 167,604 268 - 167,872 167,872 2,233 - (1,122) 1,111 1,111 - - 100.0% 168,838 159,693 100.0% 2,116 18 24,094 (268) (13,280) 10,546 9,523 1,023 90.3% 14,289 9,662 - 193,931 - - - - - - - - - (14,402) 179,529 178,506 1,023 99.4% 185,243 169,373 economic classification Adjusted Appropriation shifting of Funds Virement Final Appropriation Actual expenditure Variance 2010/11 2009/10 (restated) Final Appropriation Actual expenditure expenditure as % of final appropriation r’000 r’000 r’000 r’000 r’000 r’000 % r’000 r’000 Current payments Compensation of employees Goods and services Payment for capital assets Machinery and equipment total 25,328 10,086 - 35,394 35,394 - 100.0% 23,704 33,113 166,370 (10,066) (13,280) 143,024 142,001 1,023 99.3% 159,423 136,242 2,233 193,931 - - (1,122) 1,111 1,111 - 100.0% 2,116 18 (14,402) 179,529 178,506 1,023 99.4% 185,243 169,373 annual rePOrt 2010/2011 87 Appropriation Statement for the year ended 31 March 2011 Detail per programme 5 – Associated services 2010/11 2009/10 (restated) Programme per subprogramme Adjusted Appropriation shifting of Funds Virement Final Appropriation Actual expenditure Variance expenditure as % of final appropriation Final Appropriation Actual expenditure r’000 r’000 r’000 r’000 r’000 r’000 % r’000 r’000 5.1 Political Party support Current payment Transfers and subsidies Payment for capital assets 5.2 Constituency support Current payment Transfers and subsidies Payment for capital assets 5.3 Party leadership support Current payment Transfers and subsidies Payment for capital assets 66,589 - 209,325 6,000 total 281,914 - - - - - - - - - - 66,589 66,600 (11) 100.0% 54,965 55,163 - - 209,325 209,325 6,000 6,000 - - - - - - 100.0% 198,413 198,341 100.0% 5,308 5,239 281,914 281,925 (11) 100.0% 258,686 258,743 2010/11 2009/10
 (restated) economic classification Adjusted Appropriation shifting of Funds Virement Final Appropriation Actual expenditure Variance expenditure as % of final appropriation Final Appropriation Actual expenditure r’000 r’000 r’000 r’000 r’000 r’000 % r’000 r’000 transfers and subsidies Non-profit institutions total 281,914 281,914 - - - - 281,914 281,925 281,914 281,925 (11) (11) 100.0% 258,686 258,743 100.0% 258,686 258,743 88 annual rePOrt 2010/2011 FINANCIAL STATEMENTS NOTES TO THE APPROPRIATION STATEMENT 1.
Detail of transfers and subsidies as per Appropriation Act (after Virement): Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-H) to the Annual Financial Statements.

2.

Detail of specifically and exclusively appropriated amounts voted (after Virement): Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.

3.
3.

Detail on payments for financial assets Detail of these transactions per programme can be viewed in the note on Payments for financial assets to the Annual Financial Statements.

4.
Explanations of material variances from Amounts Voted (after Virement): 4.1 Per Programme Final Appropriation Actual expenditure Variance r’000 Variance as a % of Final Appropriation R’000 R’000 R’000 R’000 Administration Legislation and Oversight Public and International Participation Members’ Facilities Associated Services Changes in retained revenue 423,290 276,073 86,471 179,529 281,914 45,656 423,226 270,699 86,515 178,506 281,925 64 5,374 (44) 1,023 (11) 45,656 0.0% 2.0% 0.0% 1.0% 0.0% 100.0% During this period the Treasury of Parliament of the Republic of South Africa approved transfer of the above amount from retained funds of prior years to fund the upgrades of various committee rooms and audio and visual equipment.
4.2 Per Economic classification Final Appropriation Actual expenditure Variance r’000 r’000 r’000 Variance as a % of Final Appropriation r’000 Current payments transfers and subsidies Non-profit institutions Payments for capital assets Machinery and equipment 6,353 (11) 64 annual rePOrt 2010/2011 89 r’000 1 594 300 6 808 - 24 944 1 626 052 5 221 942 335 12 098 22 871 281 925 10 539 19 463 416 2009/10 restated r’000 1 506 135 6 414 58 125 19 322 1 589 996 4 243 828 412 - 24 634 258 743 6 866 - 386 711 1 738 424 1 509 609 (609) (567) (5) (113 553) 1 959 (321) 82 025 STATEMENT OF FINANCIAL PERFORMANCE For the year ended 31 March 2011 note 2010/11 reVenue Revenue from non-exchange transactions Exchange revenue Transfers, sponsorships and donations Other income totAl reVenue eXPenses Cost of sales Compensation of employees and Members Bad debts Depreciation and amortisation expense Transfers to non-profit institutions Donor project expenses Interest paid General expenses totAl eXPenses (Loss)/gain on sale of assets (Impairment loss) – increase in provision for doubtful debts Inventories: (Write-down) to net realisable value surPlus/(DeFICIt) For tHe PerIoD 90 annual rePOrt 2010/2011 STATEMENT OF FINANCIAL POSITION As at 31 March 2011 Assets Current assets Cash and cash equivalents Receivables from exchange transactions Receivables from non-exchange transactions Inventories Prepayments and advances VAT receivable non-Current Assets Fruitless and wasteful expenditure Property, plant and equipment Intangible assets Heritage assets totAl Assets lIABIlItIes Current liabilities Trade and other payables from exchange transactions Current provisions VAT payable Finance leases - current non-Current lIABIlItIes Employee benefits Finance leases – non-current totAl lIABIlItIes net Assets net Assets Accumulated surplus/(deficit) totAl net Assets FINANCIAL STATEMENTS note 2010/11 r’000 2009/10 restated r’000 27 26 27 411 928 1 926 2 133 354 4 545 - 544 46 437 310
 42 742 510 919 88 582 83 802 70 187 678 966 67 851 674 (340 755) 340 825 3 181 23 890 348 3 123 11 12 642 53 512 62 42 741 480 335 86 033 53 386 - 7 568 106 5 707 537 (227 202) (340 755) (227 202) (340 755 (227 202) annual rePOrt 2010/2011 91 STATEMENT OF CHANGES IN NETT ASSETS For the year ended 31 March 2011 net Assets recoverable revenue reserve total: reserves Accumulated surplus/ (Deficit) total: net Assets Note r’000 r’000 r’000 r’000 Balance at 31 March 2009 12,112 12,112 200,748 212,860 Changes in accounting policy as a result of implementation of GRAP 38 (12,112) (12,112) restated balance 31 March 2009 Reversals of transfers to/from accumulated surplus/(deficit) Surplus / (deficit) for the period Balance as at 31 March 2010 Surplus / (deficit) for the period Balance as at 31 March 2011 - - - - - - (509,989) (309,241) 14 82,025 (522,101) (309,241) 14 82,025 (227,202) (227,202) (113,553) (113,553) (340,755) (340,755) 92 annual rePOrt 2010/2011 CASHFLOW STATEMENT For the year ended 31 March 2011 FINANCIAL STATEMENTS CAsH FloW note 2010/11 2009/10 CAsH FloWs FroM oPerAtInG ACtIVItIes Receipts Annual appropriated funds received Statutory appropriated funds received Departmental revenue received Interest received Transfer, sponsorship and donations Payments Compensation of employees and Members Suppliers Interest paid Transfers and subsidies paid – Non-profit institutions Net cash flow available from operating activities CAsH FloWs FroM InVestInG ACtIVItIes Payments for fixed assets Payments for intangible assets Proceeds from sale of capital assets Net cash flows from investing activities CAsH FloWs FroM FInAnCInG ACtIVItIes Proceeds from finance lease liability Repayment of finance lease liability Net cash flows from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period r’000 1,648,496 1,201,621 414,134 8,021 24,720 1,560,982 801,059 477,979 19
 281,925 87,514 (16,493) (343) 183 (16,653) 242 242 71,103 340,825 411,928 restated r’000 1,567,623 1,108,002 376,678 6,593 18,431 57,919 1,488,111 790,155 439,213 - 258,743 79,512 (24,424) (52) 1,974 (22,502) 6 6 57,016 283,809 340,825 1.1 2 3 4 6 28 12 29 30 annual rePOrt 2010/2011 93 STATEMENT OF ACCOUNTING POLICIES AND RELATED MATTERS FOR THE yEAR ENDED 31 MARCH 2011 SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES rounded to the nearest R1,000 (thousand Rand).
1.

BASIS OF ACCOUNTING 1.3 GOING CONCERN ASSUMPTION 1.1 BASIS OF PRESENTATION The annual financial statements have been prepared on an accrual basis of accounting and are in accordance with historical cost convention unless specified otherwise.

These annual financial statements have been prepared in accordance with Generally Recognized Accounting Practice (GRAP), issued by the Accounting Standards Board in accordance with Section 55 of the Financial Management of Parliament Act (Act no.

10 of 2009).
10 of 2009).

The principal accounting policies adopted in the preparation of these annual financial statements are set out below.

Assets, liabilities, revenues and expenses have not been offset except when offsetting is required or permitted by a Standard of GRAP.

Parliament has adopted GRAP in the current reporting period as required by Directive 5.

Parliament has taken advantage of the transitional provisions of Directive 8.

These provisions are available to Parliament until 31 March 2013.
The application of these transitional provisions is detailed in each policy to which the directive applies.

Relevant disclosures are made as and when required in the notes to the Annual Financial Statements.

1.2 PRESENTATION CURRENCy These annual financial statements are presented in South African Rand, which is the functional currency of Parliament.
Unless stated otherwise all figures are These annual financial statements have been prepared on the assumption that Parliament will continue to operate as a going concern for at least the next 12 months.

The accumulated deficit arose due to the recognition of the post-retirement medical benefit for current and past Members.

The recognition of this post- retirement benefit was in terms of the principles GRAP 25 - Employee Benefits.

Parliament is therefore able to meet their obligations as they fall due.
1.4 COMPARATIVE INFORMATION When the presentation or classification of items in the annual financial statements is amended, prior period comparative amounts are restated.

The nature and reason for the reclassification is disclosed.

Where accounting errors have been identified in the current year, the correction is made retrospectively as far as is practicable, and the prior year comparatives are restated accordingly.
Where there has been a change in accounting policy in the current year, the adjustment is made retrospectively as far as is practicable, and the prior year comparatives are restated accordingly.

During the current reporting period GRAP was implemented as required by the Financial Management of Parliament Act (Act no.

10 of 2009).

The effect of Standards of GRAP which require retrospective application have been disclosed in note 38.
94 annual rePOrt 2010/2011 FINANCIAL STATEMENTS 1.5 HIERARCHy OF STANDARDS USED In terms of Directive 8 Parliament is not required to measure inventories, property, The standards used in compiling the annual plant and equipment, intangible assets financial statements are those stipulated in and heritage assets for reporting periods Directive 5.
1.6 STANDARDS, AMENDMENTS TO STANDARDS AND INTERPRETATIONS ISSUED BUT NOT yET EFFECTIVE During the year under review Parliament beginning on or after a date within three years following the date of initial adoption of these standards of GRAP.
Parliament has reported transitional amounts for property, plant and equipment, intangible assets and heritage assets for which the accounting is adopted all effective standards of GRAP as incomplete and will retrospectively adjust per Annexure D of Directive 5 combined with the provisional amounts recognised to reflect the transitional provisions set out in Directive new information obtained about facts and 8 issued by the Accounting Standards Board.
circumstances that existed on the effective date of the Standards of GRAP during the The following GRAP standards have been issued but are not yet effective: measurement period.

Details of the progress made during the current reporting period are graP 18 Segment reporting Implementation will have no effect on reported in note 19.

Parliament.

2.

REVENUE graP 104 financial instruments Currently accounted for in terms of the principles IPSAS 16, IAS 32, IAS 39 and IFRS 7.
Therefore implementation will have no significant effect on Parliament.

The transitional provisions for Parliament - Directive 8 have been applied to the following standards of GRAP: 2.1 REVENUE FROM EXCHANGE TRANSACTIONS Revenue from exchange transactions refers to revenue that accrued to Parliament directly in return for services rendered / goods sold, the value of which approximates the fair value consideration received or receivable.
Revenue from the sale of goods is recognised when all the following conditions graP 12 inventories have been satisfied: graP 13 leases • Parliament has transferred to the buyer the significant risks and rewards of ownership of the goods; graP 17 Property, plant and equipment • Parliament retains neither graP 21 impairment of non-cash generating assets graP 102 intangible assets graP 103 heritage assets continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; • the amount of revenue can be measured reliably; annual rePOrt 2010/2011 95 • it is probable that the economic benefits associated with the transaction will flow to Parliament; and • the costs incurred or to be incurred in respect of the transaction can be measured reliably.
those set out in the Financial Management of Parliament Act (Act No.

10 of 2009) and is recognised when the amount is recoverable and can be reliably measured.

2.3 TRANSFERS, SPONSORSHIPS AND DONATIONS Revenue from services rendered is Transfers, sponsorships and donations recognised as and when the services are received or receivable are recognised when completed.
If Parliament cannot reliably the resources that have been transferred estimate the outcome of the transaction, meet the criteria for recognition as an revenue is recognised to the extent that asset.

A corresponding liability is raised expenses recognised are recoverable.

to the extent that the grant, transfer or donation is conditional.
The liability is Interest revenue is recognised on a time transferred to revenue as and when the proportion basis if it is probable that the conditions attached to the grant are met.

economic benefits or service potential Grants without any conditions attached are associated with the transaction will flow recognised as revenue when the asset is to Parliament and the amount can be recognised.

measured reliably.
measured reliably.

2.2 REVENUE FROM NON-EXCHANGE TRANSACTIONS Revenue from non-exchange transactions refers to transactions where Parliament received revenue from another entity 3.

COST OF SALES When inventories are sold, the carrying amount of those inventories is recognised as an expense in the period in which the related revenue is recognised.

The amount of any write-down of inventories to net without directly giving approximately equal realisable value and all losses of inventories value in exchange.
Both annual appropriation and statutory appropriation from the National Revenue are recognised as an expense in the period the write-down or loss occurs.

The amount of any reversal of any write-down of Fund is classified as non-exchange revenue.
inventories, arising from an increase in net Revenue from non-exchange transactions is generally recognised to the extent that realisable value, is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the the related receipt or receivable qualifies reversal occurs.

for recognition as an asset and there is no liability to repay the amount in the event of non-performance.
Revenue from the recovery of unauthorised, irregular, fruitless and wasteful expenditure is based on legislated procedures, including 96 annual rePOrt 2010/2011 FINANCIAL STATEMENTS 4.

PROPERTy, PLANT AND EqUIPMENT non-monetary asset or monetary assets, 4.1 INITIAL RECOGNITION or a combination of monetary and non- monetary assets, the asset acquired is initially measured at fair value (the cost).
Property, plant and equipment are If the acquired item’s fair value was not tangible non-current assets that are held determinable, it’s deemed cost is the for use in the production or supply of carrying amount of the asset(s) given up.

goods or services, rental to others, or for administrative purposes, and are expected 4.2 SUBEqUENT MEASUREMENT to be used during more than one year.
Items of property, plant and equipment are Subsequent to initial recognition, items of initially recognised as assets on acquisition property, plant and equipment are measured date and are initially recorded at cost.

The at cost less accumulated depreciation and cost of property, plant and equipment is impairment losses.
recognised as an asset when it is probable that future economic benefits or service Where Parliament replaces parts of an potential associated with the asset will flow asset, it derecognises the part of the asset to Parliament and if the cost of the asset being replaced and capitalises the new can be measured reliably.

The cost of an component.


Subsequent expenditure item of property, plant and equipment is the incurred on an asset is capitalised when it purchase price and other costs attributable to increases the capacity or future economic bring the asset to the location and condition benefits associated with the asset.

necessary for it to be capable of operating in the manner intended by Parliament.

4.3 DEPRECIATION AND IMPAIRMENT Trade discounts and rebates are deducted in arriving at the cost.
The cost also includes Depreciation commences when the asset is the necessary costs of dismantling and ready for its intended use.

Depreciation is removing the asset and restoring the site on calculated on the depreciable amount, using which it is located.

the straight-line method over the estimated useful lives of the assets.
Components of When significant components of an item assets that are significant in relation to of property, plant and equipment have the whole asset and that have different different useful lives, they are accounted for useful lives are depreciated separately.

The as separate items (major components) of annual depreciation rates are based on the property, plant and equipment.
following estimated average asset lives: Where an asset is acquired by Parliament for Estimated useful lives no consideration or a nominal consideration Equipment - 5 years (i.e.

a non-exchange transaction), the cost is Furniture and fittings - 5 years deemed to be equal to the fair value of that Computer equipment - 3 years asset on the date acquired.
Financed assets - cell phones & modems Where an item of property, plant and Transport assets - 5 years equipment is acquired in exchange for a Library books - Not yet depreciated 2 years annual rePOrt 2010/2011 97 The residual value, the useful life of an asset 5.

HERITAGE ASSETS and the depreciation method is reviewed annually and any changes are recognised 5.1 INITIAL RECOGNITION as a change in accounting estimate in the Statement of Financial Performance.
Heritage assets are assets that are that The useful life of a finance lease asset natural, scientific, technological or artistic is only limited to the lease term where significance and are held indefinitely for the parliament expects to not use the asset benefit of present and future generations.

have a cultural, environmental, historical, for longer.
Parliament tests for impairment where A heritage asset is recognised as an asset if there is an indication that an asset may be it is probable that future economic benefits impaired.

An assessment of whether there or service potential associated with the asset is an indication of possible impairment is will flow to Parliament and if the cost or fair done at each reporting date.

Where the value of the asset can be measured reliably.
carrying amount of an item of property, A heritage asset that qualifies for recognition plant and equipment is greater than as an asset is measured at its cost which the estimated recoverable amount (or includes import duties and non-refundable recoverable service amount), it is written purchase taxes, after deducting trade down immediately to its recoverable discounts and rebates and any costs directly amount (or recoverable service amount) attributable to bringing the heritage asset and an impairment loss is charged to the to the location and condition necessary for Statement of Financial Performance.
it to be capable of operating in the manner intended by Parliament.

4.4 DERECOGNITION Items of property, plant and equipment are non-exchange transaction, its deemed cost derecognised when the asset is disposed shall be measured at its fair value as at the Where a heritage asset is acquired through a of or when there are no further economic date of acquisition.

benefits or service potential expected from the use of the asset.
The gain or loss 5.2 SUBEqUENT MEASUREMENT arising on the disposal or retirement of an item of property, plant and equipment is Subsequent to initial recognition, determined as the difference between the heritage assets are measured at cost less sales proceeds and the carrying value and accumulated impairment losses.

is recognised in the Statement of Financial Performance.
4.5 TRANSITIONAL PROVISIONS The transitional provisions for Parliament - Directive 8 have been applied to GRAP 17- Property, plant and equipment.

Refer to note 1.6.

98 annual rePOrt 2010/2011 FINANCIAL STATEMENTS 5.3 DEPRECIATION AND IMPAIRMENT Intangible assets are initially recognised Heritage assets are not depreciated but at cost.

Where an intangible asset is assessed at each reporting date whether acquired by Parliament for no or nominal there is an indication that it may be consideration (i.e.
a non-exchange impaired.

If any such indication exists, transaction), the cost is deemed to be Parliament estimates the recoverable equal to the fair value of that asset on the amount or the recoverable service amount date acquired.

of the heritage asset to which the carrying amount is written down.
Where an intangible asset is acquired in exchange for a non-monetary asset or monetary assets, or a combination of monetary and non-monetary assets, the 5.4 DERECOGNITION Heritage assets are derecognised when asset acquired is initially measured at fair value (the cost).

If the acquired asset’s the asset is disposed of or when there fair value is not determinable, it’s deemed are no further economic benefits or cost is the carrying amount of the asset(s) service potential expected from the use given up.
or disposal of the asset.

The gain or loss arising on the disposal or retirement of a heritage asset is determined as the difference between the sales proceeds and 6.2 SUBEqUENT MEASUREMENT - COST MODEL the carrying value and is recognised in the Intangible assets are subsequently carried Statement of Financial Performance.

at cost less accumulated amortisation and impairments.
The cost of an intangible asset 5.5 TRANSITIONAL PROVISIONS The transitional provisions for Parliament - is amortised over the useful life where that useful life is finite.

Where the useful life is Directive 8 have been applied to GRAP 103 indefinite, the asset is not amortised but is - Heritage assets.

Refer to note 1.6. subject to an annual impairment test.

6.

INTANGIBLE ASSETS 6.1 INITIAL RECOGNITION 6.3 AMORTISATION AND IMPAIRMENT Amortisation commences when the asset is ready for its intended use.
Amortisation is charged so as to write off the cost or An intangible asset is an identifiable non- valuation of intangible assets over their monetary asset without physical substance.

estimated useful lives using the straight line Parliament recognises an intangible asset method.
The annual amortisation rates are in its Statement of Financial Position only based on the following estimated average when it is probable that the expected future asset lives: economic benefits or service potential that are attributable to the asset will flow to Category - Computer software Parliament and the cost or fair value of the Estimated useful lives - 3 years asset can be measured reliably.

annual rePOrt 2010/2011 99 The amortisation period and the 7.
INVENTORIES amortisation method for an intangible asset with a finite useful life are reviewed 7.1 INITIAL RECOGNITION at each reporting date and any changes are recognised as a change in accounting Inventories comprise current assets held for estimate in the Statement of Financial sale, consumption or distribution during the Performance.

ordinary course of business.

Inventories are initially recognised at cost.


Cost generally Parliament tests intangible assets with finite refers to the purchase price, plus non- useful lives for impairment where there is an refundable taxes, transport costs and any indication that an asset may be impaired.

An other costs in bringing the inventories to assessment of whether there is an indication their current location and condition.

of possible impairment is done at each reporting date.
Where the carrying amount Where inventory is acquired by Parliament of an item of an intangible asset is greater for no consideration or a nominal than the estimated recoverable amount (or consideration (i.e.

a non-exchange recoverable service amount), it is written transaction), the cost is deemed to be down immediately to its recoverable amount equal to the fair value of the item on the (or recoverable service amount) and an date acquired.
impairment loss is charged to the Statement of Financial Performance.

7.2 SUBSEqUENT MEASUREMENT 6.4 DERECOGNITION Inventories are valued at the lower of cost and net realisable value unless they are to Intangible assets are derecognised when be distributed at no charge or a nominal the asset is disposed of or when there are charge, in which case they are measured at no further economic benefits or service the lower of cost and current replacement potential expected from the use of the asset.

cost.
cost.

Cost of inventories is determined on The gain or loss arising on the disposal the weighted average method.

Redundant or retirement of an intangible asset is and slow-moving inventories are identified determined as the difference between the and written down in this way.

Differences sales proceeds and the carrying value and arising on the valuation of inventory are is recognised in the Statement of Financial recognised in the Statement Performance.
6.5 TRANSITIONAL PROVISIONS of Financial Performance in the year in which they arise.

The amount of any reversal of any write-down of inventories The transitional provisions for Parliament - arising from an increase in net realisable Directive 8 have been applied to GRAP 102 value or current replacement cost is - Intangible Assets.

Refer to note 1.6. recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.
100 annual rePOrt 2010/2011 FINANCIAL STATEMENTS The carrying amount of inventories is whether objective evidence of impairment recognised as an expense in the period exists individually for financial assets that that the inventory was sold, distributed, are individually significant, or collectively written off or consumed, unless that cost for financial assets that are not individually qualifies for capitalisation to the cost of significant.

another asset.
another asset.

7.3 TRANSITIONAL PROVISION significant financial difficulties of the debtor, Objective evidence of impairment includes The transitional provisions for Parliament bankruptcy or financial reorganisation, - Directive 8 have been applied to GRAP 12 - and default or delinquency of payments Inventories.

Refer to note 1.6. are considered indicators that the trade probability that the debtor will enter 8.

FINANCIAL INSTRUMENTS 8.1 INITIAL RECOGNITION receivable is impaired.
If Parliament determines that no objective evidence of impairment exists for an individually assessed financial asset, whether significant or not, it includes the asset in a group of financial assets with similar credit risk Financial instruments are initially recognised characteristics and collectively assesses them at fair value, plus, in the case of a financial for impairment.
Assets that are individually asset or a financial liability not subsequently assessed for impairment and for which measured at fair value, transaction costs that an impairment loss is, or continues to be, are directly attributable to the acquisition recognised are not included in a collective or issue of the financial asset or financial assessment of impairment.

liability.
8.2 SUBSEqUENT MEASUREMENT impairment loss has been incurred, the If there is objective evidence that an amount of the loss is measured as the Financial assets and liabilities are categorised difference between the asset’s carrying according to their nature as either financial amount and the present value of estimated assets and liabilities at fair value, financial future cash flows (excluding future assets and liabilities at amortised cost or expected credit losses that have not yet financial assets and liabilities at cost.
The been incurred).

An impairment of trade subsequent measurement of financial assets receivables is accounted for by reducing and liabilities depends on this categorisation.

the carrying amount of trade receivables through the use of an allowance account, 8.2.1 TRADE AND OTHER RECEIVABLES and the amount of the loss is recognised Trade and other receivables are categorised in the Statement of Financial Performance as financial assets at amortised cost and within operating expenses.
When a trade are initially recognised at fair value and receivable is uncollectible, it is written off.

subsequently carried at amortised cost.

Subsequent recoveries of amounts previously Amortised cost refers to the initial carrying written off are credited against operating amount, plus interest, less repayments expenses in the Statement of Financial and impairments.

Parliament first assesses Performance.


annual rePOrt 2010/2011 101 If, in a subsequent year, the amount of the estimated impairment loss increases or decreases because of an event occurring 8.3 DERECOGNITION 8.3.1 FINANCIAL ASSETS after the impairment was recognised, the A financial asset (or, where applicable a previously recognised impairment loss part of a financial asset or part of a group is increased or reduced by adjusting the of similar financial assets) is derecognised allowance account.
If a future write-off is when: later recovered, the recovery is recognised in the income statement.

The present value of the estimated future cash flows is discounted at the financial asset’s original effective interest rate.

If a loan has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate.
• The rights to receive cash flows from the asset have expired; or • Parliament has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either 8.2.2 TRADE PAyABLES Trade and other payables are categorised as financial liabilities at amortised cost and are initially recognised at fair value and subsequently measured at amortised cost which is the initial carrying amount, less repayments, plus interest.
8.2.3 CASH AND CASH EqUIVALENTS a) Parliament has transferred substantially all the risks and rewards of the asset, or b) Parliament has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

When Parliament has transferred its rights Cash includes cash on hand (including petty to receive cash flows from an asset or has cash) and cash with banks (including call entered into a pass-through arrangement, deposits).
Cash equivalents are short-term and has neither transferred nor retained highly liquid investments, readily convertible substantially all the risks and rewards into known amounts of cash, that are held of the asset nor transferred control of with registered banking institutions with the asset, a new asset is recognised to maturities of three months or less and are the extent of Parliament’s continuing subject to an insignificant risk of change involvement in the asset.

in value.
in value.

For the purposes of the cash flow statement, cash and cash equivalents Continuing involvement that takes the form comprise cash on hand, deposits held on of a guarantee over the transferred asset call with banks, net of bank overdrafts.
is measured at the lower of the original Parliament categorises cash and cash carrying amount of the asset and the equivalents as financial assets, loans and maximum amount of consideration that receivables which are accounted for at Parliament could be required to repay.

amortised cost.
amortised cost.

102 annual rePOrt 2010/2011 FINANCIAL STATEMENTS 8.3.2 FINANCIAL LIABILITIES and losses arising on translation are included in surplus or deficit for the period, except A financial liability is derecognised when the for exchange differences arising on non- obligation under the liability is discharged or monetary assets and liabilities where the cancelled or expires.
changes in fair value are recognised directly When an existing financial liability is replaced by another from the same lender in equity.

on substantially different terms, or the 10.

UNAUTHORISED EXPENDITURE terms of an existing liability are substantially modified, such an exchange or modification The Financial Management of Parliament Act is treated as a de-recognition of the original (Act no.
10 of 2009) defines unauthorised liability and the recognition of a new liability, expenditure as: and the difference in the respective carrying amounts are recognised in the Statement of a) overspending of Parliament’s Financial Performance.
8.4 OFFSETTING OF FINANCIAL INSTRUMENTS Financial assets and financial liabilities are offset and the net amount reported in the approved budget or a main division within that budget; b) any expenditure from Parliament’s approved budget or a main division within that budget for a purpose unrelated to the approved budget or main division, Statement of Financial Position if, and only subject to section 22; and if, there is a currently enforceable legal right to offset the recognised amounts and there c) any expenditure of donor funds for a purpose not specified in the is an intention to settle on a net basis, or to agreement with the donor; realise the assets and settle the liabilities simultaneously.
9.

FOREIGN CURRENCIES Unauthorised expenditure is accounted for as an expense in the Statement of Financial Performance and where recovery is highly probable is recognised as an asset in the Statement of Financial Position and revenue Transactions in currencies other than South in the Statement of Financial Performance.

African Rand are recorded at the rates of exchange prevailing on the dates of the transactions.

At each balance sheet date, 11.


IRREGULAR EXPENDITURE monetary assets and liabilities that are denominated in foreign currencies are The Financial Management of Parliament translated at the rates prevailing on the Act (Act no.

10 of 2009) defines irregular balance sheet date.


Non-monetary assets expenditure as expenditure, other than and liabilities carried at fair value that are unauthorised expenditure, incurred in denominated in foreign currencies are contravention of, or that is not in accordance translated at the rates prevailing at the date with, a requirement of this Act or any other when the fair value was determined.
Gains applicable legislation; annual rePOrt 2010/2011 103 HEADING SHOULD BE: NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 March 2011 (must appear on all pages up to page number 114 DELETE ALL LINES ON COLUMNS & ROWS EXCEPT TOTALS Irregular expenditure is accounted for as Provisions are reviewed at each reporting expenditure in the Statement of Financial date and adjusted to reflect the current best Performance and where recovery is highly estimate.
If it is no longer probable that an probable is recognised as an asset in the outflow of resources embodying economic Statement of Financial Position and revenue benefits or service potential will be required to in the Statement of Financial Performance.

settle the obligation, the provision is reversed.

12.

FRUITLESS AND WASTEFUL EXPENDITURE Parliament does not recognise a contingent liability or contingent asset.
A contingent liability is disclosed unless the possibility The Financial Management of Parliament of an outflow of resources embodying Act (Act no.

10 of 2009) defines fruitless economic benefits is remote.

Contingent and wasteful expenditure as expenditure assets are not recognised in financial that was made in vain and would have been statements since this may result in the avoided had reasonable care been exercised.
recognition of revenue that may never be Fruitless and wasteful expenditure is revenue is virtually certain, then the related accounted for as expenditure in the asset is not a contingent asset and its Statement of Financial Performance and recognition is appropriate.

realised.
realised.

However, when the realisation of where recovery is highly probable is recognised as an asset in the Statement Where the effect of time value of money of Financial Position and revenue in the is material, future events that may affect Statement of Financial Performance.

the amount required to settle an obligation 13.

PROVISIONS are reflected in the amount of a provision where there is sufficient objective evidence that they will occur.
Gains from the expected disposal of assets are not taken into account Provisions are recognised when Parliament in measuring a provision.

Provisions are not has a present or constructive obligation recognised for future operating losses.

The as a result of past events, it is probable present obligation under an onerous contract that an outflow of resources embodying is recognised and measured as a provision.
economic benefits will be required to settle the obligation and a reliable estimate of the provision can be made.

Provisions are 14.

LEASES reviewed at reporting date and adjusted to reflect the current best estimate.
Where the 14.1 PARLIAMENT AS LESSEE effect is material, non-current provisions are discounted to their present value using Leases are classified as finance leases at the a pre-tax discount rate that reflects the inception of the lease if substantially all the market’s current assessment of the time risks and rewards associated with ownership value of money, adjusted for risks specific to of an asset are transferred to Parliament.

the liability.
the liability.

104 annual rePOrt 2010/2011 FINANCIAL STATEMENTS Property, plant and equipment or intangible 14.2 TRANSITIONAL assets subject to finance lease agreements are initially recognised at the lower of The transitional provisions for Parliament the asset’s fair value and the present - Directive 8 have been applied to GRAP 13 - value of the minimum lease payments.

Leases.

Refer to note 1.6.

The corresponding liabilities are initially recognised at the inception of the lease and 15.
BUDGET INFORMATION are measured as the sum of the minimum lease payments due in terms of the lease Budget information is disclosed in agreement, discounted for the effect of accordance with GRAP 24 Presentation of interest.

In discounting the lease payments, Budget Information in Financial Statements Parliament uses the interest rate that (GRAP 24).

exactly discounts the lease payments and unguaranteed residual value to the fair value of the asset plus any direct costs incurred.

16.
16.

RELATED PARTIES Subsequent to initial recognition, the leased Related party disclosures are prepared in assets are accounted for in accordance with accordance with IPSAS 20 Related Party the stated accounting policies applicable to Disclosures (IPSAS 20).

Related parties are property, plant, equipment or intangibles.
identified as being those parties that control The lease liability is reduced by the lease or have significant influence over Parliament payments, which are allocated between the and those parties that are controlled or lease finance cost and the capital repayment significantly influenced by Parliament.

using the effective interest rate method.

Disclosure is made of all relationships Lease finance costs are expensed when involving control, even when there are no incurred.
The accounting policies relating to transactions between such parties during the derecognition of financial instruments are year; all other related party transactions and applied to lease payables.

The lease asset is management compensation.

depreciated over the shorter of the asset’s useful life or the lease term.

17.

EMPLOyEE BENEFITS Operating leases are those leases that do not fall within the scope of the above definition.
17.1 SHORT-TERM EMPLOyEE BENEFITS Operating lease rentals are accrued on a straight-line basis over the term of the The cost of short-term employee benefits relevant lease.

payable within 12 months after service The difference between the amounts was rendered are recognised in the recognised as an expense and the period in which service is rendered and contractual payments are recognised as not discounted.
The expected cost of either a pre-paid expense asset or liability compensated absences is recognised as an depending on whether the payment exceeds expense as the employees render services the expense or vice versa.

that increase their entitlement.


annual rePOrt 2010/2011 105 When an employee has rendered service in respect of individual participating to Parliament during a reporting period, employers is unavailable due to centralised Parliament recognises the undiscounted administration of these funds are accounted amount of short-term employee benefits for as if it were defined contribution funds.
expected to be paid in exchange for that service: Other post employment obligations * as a liability (accrued expense), after Past service costs are determined by using deducting any amount already paid.

If the projected unit credit method.

The the amount already paid exceeds the amount recognised in the balance sheet undiscounted amount of the benefits, represents the present value of defined Parliament recognises that excess as an plan obligations.
Current service costs, past asset (prepaid expense) to the extent that service costs, the effects of changes in the prepayment will lead to, for example, actuarial assumptions and the effects of plan a reduction in future payments or a cash amendments, are recognised as an expense refund; and in the current year.

* as an expense, unless another Standard requires or permits the inclusion of the defined benefit funds benefits in the cost of an asset.
The related current service costs and where applicable, past service costs are determined The expected cost of compensated absences by using the projected unit credit method.
is recognised as an expense as the The amount recognised in the statement of employees render services that increase financial position represents the present value their entitlement or, in the case of non of defined benefit obligations as adjusted for accumulating absences, when the absence unrecognised actuarial gains or losses and occurs.

Parliament measures the expected unrecognised past service costs, and reduced cost of accumulating compensated absences by the fair value of plan assets.
To the extent as the additional amount that Parliament that there is uncertainty as to the entitlement expects to pay as a result of the unused to the surplus, no asset is recognised.

Current entitlement that has accumulated at the service costs are recognised as an expense in reporting date.

the current year.
the current year.

17.2 RETIREMENT BENEFITS Past service costs, experience adjustments, the effects of changes in actuarial Parliament provides retirement benefits assumptions and the effects of plan for its employees and Members.
The amendments in respect of existing contributions to fund obligations for the employees are recognised as an expense or payment of retirement benefits are charged as income systematically over the expected against surplus or deficit in the year they average remaining working lives of those become payable.

employees.
employees.

The effects of plan amendments in respect of retired employees are defined contribution measured at the present value of the effect Defined benefit funds which are of the amended benefits and are recognised administered on a national basis and as an expense or as income in the year in for which specific actuarial information which the plan amendment is made.
106 annual rePOrt 2010/2011 FINANCIAL STATEMENTS multi-employer and state plans An impairment loss is recognised for cash- These plans are classified as either a defined generating units if the recoverable service benefit plan or a defined contribution plan.

amount of the unit is less than the carrying If the plan is a defined benefit plan, an amount of the unit.

The impairment loss is actuarial valuation should be obtained.
allocated to reduce the carrying amount of Normal defined benefit accounting would the assets of the unit as follows: be applied to the proportionate share of the - to the assets of the unit, pro rata on the obligation and assets relating to Parliament.

basis of the carrying amount of each asset in If actuaries are unable to provide Parliament the unit.

with an actuarial valuation, Parliament accounts for the plan as if it were a defined contribution plan.

18.
18.

IMPAIRMENT OF Parliament assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for assets may no longer exist or may have decreased.

If any such indication exists, the Parliament assesses at each reporting date recoverable service amounts of those assets whether there is any indication that an asset are estimated.

may be impaired.
may be impaired.

If any such indication exists, Parliament estimates the recoverable The increased carrying amount of an asset service amount of the asset.

attributable to a reversal of an impairment loss does not exceed the carrying amount If there is any indication that an asset may be that would have been determined had no impaired, the recoverable service amount is impairment loss been recognised for the estimated for the individual asset.

If it is not asset in prior periods.


possible to estimate the recoverable service amount of the individual asset, the recoverable A reversal of an impairment loss of assets service amount of the cash-generating unit to carried at cost less accumulated depreciation which the asset belongs is determined.
or amortisation is recognised immediately in The recoverable service amount of an asset or The transitional provisions for Parliament - a cash-generating unit is the higher of its fair Directive 8 have been applied to GRAP 21 value less costs to sell and its value in use.

- Impairment of non-cash generating assets.

surplus or deficit.

Refer to note 1.6.


If the recoverable service amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable service amount.

That reduction 19.

KEy SOURCES OF ESTIMATION UNCERTAINTy AND jUDGEMENTS is an impairment loss.
In preparing the annual financial statements, An impairment loss of assets carried at management is required to make estimates cost less any accumulated depreciation or and assumptions that affect the amounts amortisation is recognised immediately in represented in the annual financial surplus or deficit.

statements and related disclosures.


annual rePOrt 2010/2011 107 Use of available information and the Property, plant and equipment, application of judgement is inherent in the intangible assets and heritage assets - formation of estimates.

Actual results in impairment the future could differ from these estimates During the course of the verification exercise which may be material to the annual financial Parliament identified all items of property, statements.
Significant judgements include: plant and equipment and intangible assets 19.1 APPLICATION OF DIRECTIVE 8 TRANSITIONAL PROVISIONS FOR PARLIAMENT for which impairment indicators exist.

Where possible provisional amounts were impaired to the recoverable service amount.

Inventories Property, plant and equipment, Certain categories of inventories are intangible assets and heritage assets - stated at provisional values pending final measurement measurement during the transitional period.
During the current reporting period Parliament embarked on a full asset verification exercise.

All assets identified that were not on the 19.2 DEFINED BENEFIT PLANS The liability to be recognised is based on an asset register were recognised at provisional actuarial valuation using the projected credit amounts pending a full valuation exercise unit method.

during the next two reporting periods within the transitional period.
These assets were 19.3 PROVISION FOR DOUBTFUL DEBTS initially expensed as Parliament’s modified accrual accounting policy did not necessitate At each reporting date Parliament assesses capitalisation of assets below a capitalisation whether there is any objective evidence threshold of R5 000. that debtors are impaired.
If evidence of impairment exists, the allowance is Property, plant and equipment, calculated as the fair value of the debtor intangible assets and heritage assets - less the present value of the estimated useful lives and residual values recoverable amount or the recoverable For the reporting date ended 31 March service amount.
2011 the useful lives and residual values of property, plant and equipment had not been 19.4 FAIR VALUE reviewed as the valuation of assets is still to be completed within the transitional period.

The carrying value less impairment Parliament will review the useful lives and provision of trade receivables and payables residual values of all items of property, plant are assumed to approximate their fair and equipment and intangible assets still values.
The fair value of financial liabilities in use at 31 March 2012 based on the best for disclosure purposes is estimated by evidence available at that date.

discounting the future contractual cash flows at the current market interest rate that is available to Parliament for similar financial instruments.

108 annual rePOrt 2010/2011 FINANCIAL STATEMENTS 19.5 PROVISIONS Provisions were raised and management determined an estimate based on the information available.
Additional disclosure of these estimates of provisions are included in note 24.

19.6 EFFECTIVE INTEREST RATE Parliament used the incremental borrowing rate to discount future cash flows.

19.7 CAPITAL WORKS Parliament believes improvements affected to the premises occupied by Parliament and owned by Department of Public Works (DPW) do not have any enduring benefit.

These improvements are therefore expensed as incurred.
annual rePOrt 2010/2011 109 Notes to the Financial Statements for the year ended 31 March 2011 1 reVenue FroM non-eXCHAnGe trAnsACtIons 1.1 Annual appropriation received Programmes Administration Legislation and Oversight Public and International Participation Member’s Facilities Associated Services Voted funds are the amounts appropriated to Parliament in accordance with the final budget known as the Adjusted Estimate.
Unexpended voted funds (except for the underspend in the Statutory Appropriation which is for the Members’ remuneration) are not surrendered to the National Revenue Fund and is available to Parliament for future utilisation.
statutory appropriation received 1.2 Amount forming a direct charge on the National Revenue Fund in respect of salaries, allowances and other benefits of office-bearers and other members of the National Assembly and the National Council of Provinces - in terms of the Payment of Members of Parliament Act (Act No.6 of 1994).
2 eXCHAnGe reVenue Sale of goods and services Sundry income note 2011 r’000 1,594,300 1,201,621 346,279 300,068 79,429 193,931 281,914 2010 restated r’000 1,506,135 1,108,002 292,150 232,991 98,932 225,243 258,686 392,679 398,133 6,808 6,110 698 6,414 4,994 1,420 3 3.1 trAnsFers, sPonsorsHIPs AnD DonAtIons local and foreign aid assistance African Capacity Building Foundation (ACBF) - Capacity building European Union (EU) - Legislature support programme - - - - 58,125 55,381 206 55,175 25.2 25.1 3.2 Gifts, donations and sponsorships Old mutual Standard bank 4 otHer InCoMe Investment income Insurance commissions Bad debt recoveries - - - 2,744 856 1,888 24,944 24,624 217 103 18,784 18,605 179 - 110 annual rePOrt 2010/2011 Notes to the Financial Statements for the year ended 31 March 2011 5 CoMPensAtIon oF eMPloyees AnD MeMBers 5.1 Compensation of employees Basic remuneration Performance awards Compensative/ circumstantial Periodic payments Pension UIF Insurance 5.2 5.3 6 6.1 6.2 7 Compensation of Members Basic remuneration Pension UIF Gratuities Other non-pensionable allowances Benefits paid Post-retirement medical aid contributions Movement in long-term employee benefits Average number of employees Average number of Members DePreCIAtIon AnD AMortIsAtIon eXPense Depreciation Equipment Furniture and fittings Computer equipment Transport assets Amortisation Software Both depreciation and amortisation are subject to the transitional provisions of Directive 8. trAnsFers to non-ProFIt InstItutIons Party leadership allowance Party support allowance Constituency allowance These payments were made in terms of Section 34 of the Financial Management of Parliament Act (Act no.10 of 2009).
FINANCIAL STATEMENTS note 19 2011 r’000 942,335 419,927 380,571 7,061 4,893 2,975 18,196 1,813 4,418 376,154 182,902 51,653 - 33,395 108,204 146,254 35,394 110,860 1219 392 22,871 22,781 4,127 6,664 11,817 173 2010 restated r’ Donor ProJeCt eXPenses ACBF - Capacity building 10,539 - 6,866 397 EU - Legislature support programme 10,539 6,469 annual rePOrt 2010/2011 111 EMPTy LINE TO BE DELETED Notes to the Financial Statements for the year ended 31 March 2011 9 Interest PAID Finance leases 10 GenerAl eXPenses Advertising Audit fees Bank charges and card fees Bursaries (employees) Capital works Commission Communication Computer services Consultants, contractors and special services Consumables Courier and delivery services Entertainment Equipment rental Learnerships Legal fees Maintenance, repair and running costs Operating leases Personnel agency fees Plant flowers and other decorations Printing and publications Professional bodies and membership fees Protective, special clothing & uniforms Resettlement costs Training & staff development Translations and transcriptions Transport provided as part of the departmental activities Travel and subsistence 10.1 11 Venues and facilities travel and subsistence Local Foreign (loss)/ GAIn on DIsPosAl oF Assets Equipment Furniture and fittings Computer equipment Transport assets 12 (IMPAIrMent loss) / reVersAl oF IMPAIrMent loss trade receivables note 2011 r’000 2010 restated r’000 19 - (609) (162) (258) (174) 1,959 - - 1,959 (15) - (567) (321) 10.1 Movement in provision for doubtful debts 14 (567) (321) 112 annual rePOrt 2010/2011 Notes to the Financial Statements for the year ended 31 March 2011 13 CAsH AnD CAsH equIVAlents Cash and cash equivalents consist of the following: Cash on hand Cash at bank Call deposits Cash equivalents and short-term deposits are placed with high- credit quality financial institutions.
The exposure to credit risk is the carrying amount of each class of cash and cash equivalents.
Parliament has the following bank accounts: - 13.1 Cash at bank FnB limited - Primary bank account Account number 62078790964 Cash book balance at beginning of year Cash book balance at end of year Bank statement balance at beginning of year Bank statement balance at end of year FnB limited - salary bank account Account number 62078791657 Cash book balance at beginning of year Cash book balance at end of year Bank statement balance at beginning of year Bank statement balance at end of year FnB limited - Petty cash bank account Account number 62078792019 Cash book balance at beginning of year Cash book balance at end of year Bank statement balance at beginning of year Bank statement balance at end of year nedbank limited - Primary bank account Account number 1452064776 Cash book balance at beginning of year Cash book balance at end of year Bank statement balance at beginning of year Bank statement balance at end of year nedbank limited - salary bank account Account number 1452064784 Cash book balance at beginning of year Cash book balance at end of year Bank statement balance at beginning of year Bank statement balance at end of year nedbank limited - Petty cash bank account Account number 1452064970 Cash book balance at beginning of year Cash book balance at end of year Bank statement balance at beginning of year Bank statement balance at end of year FINANCIAL STATEMENTS note 2011 r’000 2010 restated r’ - 9 9 11 - 9 - - 89,651 - 89,651 - - - - 290 - - - - 290 - - 23 - 23 - - - - annual rePOrt 2010/2011 113 Notes to the Financial Statements for the year ended 31 March 2011 Inactive accounts: EU main - account number 1452064903 EU salaries - account number 1452064911 EU petty cash - account number 1452064938 Call deposits Call deposits do not exceed three months and are kept at the following institution: 13.2 note 2011 r’000 2010 restated r’000
 316,688 292,048 Rand Merchant Bank Ltd 316,688 292,048 114 annual rePOrt 2010/2011 Notes to the Financial Statements for the year ended 31 March 2011 FINANCIAL STATEMENTS 14 reCeIVABles FroM eXCHAnGe trAnsACtIons Gross Balances Provision for Doubtful Debts net Balance as at 31 March 2011 Receivables from exchange transactions Recoveries of staff expenses Other receivables total other receivables employee advances total as at 31 March 2010 Receivables from exchange transactions Recoveries of staff expenses Other receivables total r’000 r’000 r’000 895 895 1,443 3,233 33 3,266 859 925 2,286 4,070 (349) (702) (289) (1,340) 546 193 1,154 1,893 - 33 (1,340) 1,926 (12) (610) (267) (889) 847 315 2,019 3,181 Receivables mainly consist of receivables of a non-trade nature and therefore standard terms do not apply.
No interest is raised on long outstanding amounts.
Summary of Debtors by Customer Classification Gross Balances Provision for Doubtful Debts net Balance r’000 r’000 r’000 728 16 151 895 1,443 (349) - - (702) 379 16 151 193 (289) 1,154 3,233 (1,340) 1,893 590 13 256 925 2,286 4,070 (12) - - (610) (267) (889) 578 13 256 315 2,019 3,181 as at 31 March 2011 Political parties ¹ Media Government organisations Members and employees Other total as at 31 March 2010 Political parties ¹ Media Government organisations Members and employees Other total ¹ The provision for doubtful debts provided for political parties pertains to refunds of party support payments for parties that had not returned to Parliament.
The maximum exposure to credit risk at the reporting date is the carrying amount of each class of receivable mentioned above.
annual rePOrt 2010/2011 115 Notes to the Financial Statements for the year ended 31 March 2011 reconciliation of the doubtful debt provision Balance at beginning of the year Contributions to provision Reversal of provision Balance at end of year trade and other receivables past due but not impaired The ageing of amounts past due but not impaired is as follows: 90 - 180 days 180 - 360 days 360 days + reCeIVABles FroM non-eXCHAnGe trAnsACtIons ACBF - recovery of donor project expenses Interest receivable accrual National Treasury¹ ¹Statutory appropriation related to Members’ gratuities InVentorIes Catering stock Opening balance Additions Cost of sales Write-down to net realisable value Balance at end of year 15 16 note 2011 r’000 2010 restated r’000 891 567 (116) 1,342 570 321 - 891 7 54 4 2,133 - 2,133 - 37 13 27 23,890 206 2,229 21,455 348 5,227 (5,216) (5) 354 302 4,289 (4,243) - 348 Inventories are reported on provisional amounts which are subject to the transitional provisions of Directive 8.
Currently library books and catering equipment are reported at a provisional amount of zero which will be finalised in the measurement period ending 31 March 2013.

17 PrePAyMents Prepayments to Department of International Relations & Cooperation¹ Prepaid expenses ¹Advances to Department of International Relations and Cooperation for service to be delivered during international travel for Members of Parliament and staff.
18 FruItless AnD WAsteFul eXPenDIture Fruitless and wasteful expenditure to be recovered related to the misuse of travel warrants by Members.

Cancellation fees Total This amount was approved to be written off in the current reporting period by the Executive Authority.

It is no longer probable that future economic benefits or service potential will flow to Parliament.
reconciliation of movement in fruitless and wasteful expenditure: Opening balance Written off to accumulated surplus Revised opening balance 31.2 38 Recovered Written off Balance at end of year 116 annual rePOrt 2010/2011 4,545 1,542 3,003 3,123 3,123 - 544 - 544 12,103 539 12,642 12,642 - 12,642 - (12,098) 544 12,656 12,656 (14) 12,642 Notes to the Financial Statements for the year ended 31 March 2011 19 ProPerty, PlAnt AnD equIPMent 19.1 reconciliation of Carrying Value as at 1 April 2010 Cost Accumulated depreciation and impairment losses Acquisitions Depreciation Carrying value of disposals Cost Accumulated depreciation and impairment losses as at 31 March 2011 Cost Accumulated depreciation and impairment losses FINANCIAL STATEMENTS equipment Furniture and fittings Computer equipment transport assets r’000 11,694 28,933 (17,239) 617 (4,127) (162) (5,409) 5,247 8,022 24,141 (16,119) r’000 r’000 r’000 22,188 34,703 (12,515) 1,176 (6,664) (258) (2,358) 2,100 16,442 33,521 (17,079) 19,292 49,923 (30,631) 14,700 (11,817) (352) (9,852) 9,500 21,823 54,771 (32,948) 338 2,979 (2,641) - (173) (15) (83) 68 150 2,896 (2,746) Included in property, plant and equipment are leased assets with a carrying value of R241,173 (2010: R12,014).
Parliament is in the process of forming a fixed asset unit which will be responsible for managing their fixed assets.

A physical verification of all fixed assets has been performed by Parliament in the current reporting period.

As a result, the existence and recognition of fixed assets has been confirmed.

Parliament has taken advantage of the transitional provisions set out in Directive 8 The transitional provisions allow Parliament three years to measure their fixed assets accurately.
The measurement period will end on 31 March 2013.

At present, the fixed assets are measured at provisional values.

During the measurement period, Parliament will measure all fixed assets currently presented and disclosed at provisional values.
total r’000 53,512 116,538 (63,026) 16,493 (22,781) (787) (17,702) 16,915 46,437 115,329 (68,892) - 19.2 reconciliation of Carrying Value equipment Furniture and fittings Computer equipment transport assets total as at 1 April 2009 Cost r’000 r’000 r’000 r’000 r’000 16,889 25,112 10,007 934 52,942 29,900 25,887 33,486 2,968 92,241 Change in accounting policy (note 38) (611) 4,464 977 11 4,841 Accumulated depreciation and impairment losses (12,400) (5,239) (24,456) (2,045) (44,140) Acquisitions Depreciation Carrying value of disposals Cost Accumulated depreciation and impairment losses 598 3,841 19,985 - 24,424 (5,793) (6,765) (10,700) (596) (23,854) - - - - - - (4,914) - 4,914 - - - as at 31 March 2010 11,694 22,188 19,292 338 - (4,914) 4,914 53,512 Cost 28,933 34,703 49,923 2,979 116,538 Accumulated depreciation and impairment losses (17,239) (12,515) (30,631) (2,641) (63,026) Included in property, plant and equipment are leased assets with a carrying value of R12,014 (2009: R5,529).
annual rePOrt 2010/2011 117 Notes to the Financial Statements for the year ended 31 March 2011 20 IntAnGIBle Assets 20.1 reconciliation of carrying value as at 1 April 2010 Cost Accumulated amortisation and impairment losses Acquisitions Amortisation Carrying value of disposals Cost Accumulated amortisation as at 30 March 2011 Cost Accumulated amortisation and impairment losses Computer software r’000 62 2,273 (2,211) 343 (90) (5) (162) 157 310 2,454 (2,144) Parliament has taken advantage of the transitional provisions set out in Directive 8 The transitional provisions allow Parliament three years to measure their intangible assets accurately.
The measurement period will end on 31 March 2013.

At present, the intangible assets are measured at provisional values.

During the measurement period, Parliament will measure all intangible assets currently presented and disclosed at provisional values.
20.2 reconciliation of carrying value as at 1 April 2009 Cost Change in accounting policy (note 38) Accumulated amortisation and impairment losses Acquisitions Amortisation as at 31 March 2010 Cost Accumulated amortisation and impairment losses 21 21.1 HerItAGe Assets reconciliation of carrying value as at 1 April 2010 Deemed cost Acquisitions as at 30 March 2011 Computer software r’000 790 1,976 100 (1,286) 52 (780) 62 2,273 (2,211) Heritage assets r’000 42,741 42,741 1 42,742 Parliament has taken advantage of the transitional provisions set out in Directive 8.
The transitional provisions allow Parliament three years to measure their heritage assets accurately.

The measurement period will end on 31 March 2013.

At present, the heritage assets are measured at provisional values.

During the measurement period, Parliament will measure all heritage assets currently presented and disclosed at provisional values.
In terms of Directive 7 Parliament determined a deemed cost for heritage assets in the absence of sufficient information about the acquisition cost of its heritage assets.
21.2 reconciliation of carrying value as at 1 April 2009 Cost Change in accounting policy (note 38) Disposals as at 31 March 2010 118 annual rePOrt 2010/2011 Heritage assets r’000 42,756 35,925 6,831 (15) 42,741 Notes to the Financial Statements for the year ended 31 March 2011 22 trADe AnD otHer PAyABles FroM eXCHAnGe trAnsACtIons Trade creditors Payments received in advance Accruals Employee benefits Other creditors total creditors The fair value of trade and other payables approximates their carrying amounts.
Standard credit terms of 30 days apply.

22.1 Employee benefits leave accrual Negative leave entitlement Leave entitlement Capped leave commitments Guaranteed performance awards overtime uIF 23 VAt (PAyABle) / reCeIVABle VAT (payable) / receivable VAT is payable on the receipts basis.

VAT is paid over to SARS only once payment is received from debtors.
24 ProVIsIons Performance bonus Members’ gratuities The movement in current provisions are reconciled as follows: - 24.1 Performance Bonus opening balance Contributions to provision Expenditure incurred Closing balance The bonuses are calculated on 70% of the annual total cost to employer divided by 12 months.

The value of the bonus is determined by the score out of 5 achieved by an employee at the time of the performance assessment.
The number of employees qualifying for the bonus is based on management’s best estimate taking into consideration historical trends.

24.2 Members’ gratuities opening balance Contributions to provision Expenditure incurred Closing balance This provision is calculated for all current Members of Parliament with service exceeding five years assuming termination of service at the reporting date.
It is calculated as 4 months pensionable salary for every five years in service or pro- rata share of the five year period.

Pensionable salary is 60% of their total gazetted remuneration package including a deemed medical aid contribution as determined by the principal employer.
FINANCIAL STATEMENTS note 2011 r’000 2010 r’000 22.1 24.1 24.2 11,018 755 44,402 32,407 - 88,582 32,407 18,084 (520) 13,014 5,590 4,154 528 9,641 (70) 83,802 6,874 76,928 5,860 7,061 (6,047) 6,874 30,705 805 21,990 30,460 2,073 86,033 30,460 16,721 (449) 11,232 5,938 4,098 - 9,641 11 53,386 5,860 47,526 5,800 5,860 (5,800) 5,860 47,526 31,549 (2,147) 76,928 43,674 25,122 (21,270) 47,526 annual rePOrt 2010/2011 119 Notes to the Financial Statements for the year ended 31 March 2011 note 2011 r’000 2010 restated r’000 25 unsPent ConDItIonAl GrAnts AnD reCeIPts 25.1 eu grant Budgetary support programme in three tranches of 5 million Euro each to assist Parliament in establishing a legislative sector in South Africa.
First tranche received and utilised to facilitate the process.

80% of further tranches to be distributed directly to the provincial legislative sectors.

opening balance Received Recognised in Statement of Financial Performance Closing balance 25.2 ACBF grant Project in conjunction with the African Capacity Building Foundation which came to an end in the 2010 reporting period.
opening balance Recognised in Statement of Financial Performance Transferred in/ (out) Closing balance total unspent Conditional Grants and receipts non-current unspent conditional grants and receipts Current portion of unspent conditional grants and receipts 3.1 3.1 26 eMPloyee BeneFIts 26.1 the Government employees Pension Fund (GePF) Retirement benefits are provided by membership of the Government Employees Pension Fund which is a defined benefit fund.
Parliament’s responsibility regarding the funding of the shortfall of the pension fund is limited to the current contributions made on behalf of its employees.

The obligation of the fund is guaranteed by the National Revenue Fund and not by the individual government departments and entities .

This responsibility is governed by the Government Employees Pension Law, Proclamation 21 of 1996.
- - - - - - - - - - - - 55,175 (55,175) - - 206 (206) - - - - Contributions to the GEPF for the reporting period 18,196 16,450 These contributions are included in surplus or deficit for the reporting period.

The most recent actuarial valuation of the GEPF was performed on 31 March 2008.

This valuation indicates that the plan is in a sound financial position.

The estimated liabilities of the fund are R707 million which are adequately funded by assets of R707 million.
26.2 The Political Office-Bearers Pension Fund (POBF) The Political Office-Bearers Pension Fund has a defined contribution and a defined benefit section in terms of which the basis of funding of retirement benefits is on a defined benefit basis through additional service and equalisation benefits provided by National Treasury, and on a defined contribution basis through the utilisation of member credits accumulated.
This responsibility is governed the Members of Parliament and Political Office- bearers Pension Scheme Act, 1984 (Act No.

112 of 1984) as amended in 1992.

Parliament’s responsibility regarding the funding of the shortfall of the pension fund is limited to the current contributions made on behalf of its employees.

Contributions to the POBF for the reporting period 51,653 48,749 These contributions are included in surplus or deficit for the reporting period.
120 annual rePOrt 2010/2011 Notes to the Financial Statements for the year ended 31 March 2011 FINANCIAL STATEMENTS note 2011 r’000 2010 restated r’000 The most recent actuarial valuation of the POBF was performed on 31 March 2008.

This valuation indicates that the plan is in a sound financial position.

The estimated liabilities of the fund are R1.422 billion which are adequately funded by assets of R1.423 billion.
26.3 non-contributory funds The Pension Scheme for Officers of Parliament (PSOP) The Pension Scheme for Officers of Parliament (PSOP) is a defined benefit plan.

The obligation of the fund is guaranteed by the National Revenue Fund.

This responsibility is governed by the General Pensions Act 29 of 1979.

26.4 Post-retirement medical aid contributions In terms of existing practice Parliament provides to contribute a maximum of 66.67% to the Parmed scheme for retired Members of Parliament.
This defined benefit liability for potential post- retirement medical aid costs in respect of existing employees has been actuarially valued as at 31 March 2011. reconciliation of movement in liability opening balance Current service cost Interest cost Benefits paid Actuarial loss Closing balance 678,966 568,106 568,106 533,760 28,540 38,750 21,240 43,890 (35,394) (33,114) 78,964 678,966 2,330 568,106 annual rePOrt 2010/2011 121 Notes to the Financial Statements for the year ended 31 March 2011 Principal actuarial assumptions: sensitivity results The present value of obligations of Parliament was recalculated to show the effect of: A one percent change in the Discount rate, with all other assumptions remaining unchanged; A one percent change in the Health Care inflation rate, with all other assumptions remaining unchanged; An average retirement age of one year younger or older than the assumed average retirement age, with all other assumptions remaining unchanged.
The tables below shows the accrued liability with the altered assumptions as listed, as well as the proportional sensitivity relative to the results shown in Section 2.1.

The reader should note that these sensitivities apply to the accrued liabilities only.
31 March 2011 Accrued Contributions Liability (R’ million) % change 31 March 2011 Accrued Contributions Liability (R’ million) % change 31 March 2011 Accrued Contributions Liability (R’ million) % change 31 March 2010 Accrued Contributions Liability (R’ million) % change 31 March 2010 Accrued Contributions Liability (R’ million) % change 31 March 2010 Accrued Contributions Liability (R’ million) % change 122 annual rePOrt 2010/2011 Base Assumptions X% 684.13 Base Assumptions X% 573.27 Base Assumptions 65 years 573.27 Base Assumptions X% 573.27 Base Assumptions X% 573.27 Base Assumptions 65 years 573.27 Discount rate -1% 781.37 +14.2% Health Care Inflation -1% 605.56 -11.5% +1% 605.68 -11.5% +1% 779.93 +14.0% Average Retirement Age 1 year younger 1 year older 702.52 +2.7% Discount rate -1% 654.41 +14.2% Health Care Inflation -1% 507.55 -11.5% Average Retirement Age 667.92 -2.4% +1% 507.65 -11.4% +1% 653.19 +13.9% 1 year younger 1 year older 592.16 +3.3% 556.07 +3.0% FINANCIAL STATEMENTS Notes to the Financial Statements for the year ended 31 March 2011 DIsCount rAte The discount rate is based on the annualised Zero-Coupon yield curve of South African bonds as at 31 March 2010 and 31 March 2011, gross of tax, as shown in the table below.
The entire yield curve was applied to this valuation Term Zero-coupon South African Bond yields: Term 30+ annual rePOrt 2010/2011 123 Notes to the Financial Statements for the year ended 31 March 2011 InCreAse In HeAltH CAre Cost Term Zero-coupon South African Bond yields less 1.5%: Active members expected to continue after retirement Average retirement age 124 annual rePOrt 2010/2011 Term 30+ years 65 years Notes to the Financial Statements for the year ended 31 March 2011 FINANCIAL STATEMENTS MortAlIty Pre-retIreMent Male Female Mortality post-retirement Male Female SA 85-90 (aggregate) SA 85-90 (aggregate) SA 85-90 (aggregate) with a 3 year reduction SA 85-90 (aggregate) with a 3 year reduction PA (90) rated down with 2 years and 1% annual mortality improvement from 2008 PA (90) rated down with 2 years and 1% annual mortality improvement from 2008 PA (90) rated down with 2 years and 1% annual mortality improvement from 2008 PA (90) rated down with 2 years and 1% annual mortality improvement from 2008 annual rePOrt 2010/2011 125 Notes to the Financial Statements
 for the year ended 31 March 2011 27 FInAnCe leAses Minimum lease payments due: Payable within 1 year Payable within 2 - 5 years Less: future finance charges Present value of lease payments due Current Non-current note 2011 r’000 2010 restated r’000 197 69 (12) 254 187 67 254 8 6 (2) 12 7 5 12 The average lease term is 2 years for cellphones and modems.
The average effective borrowing rate is prime interest rate.

Leases have fixed monthly payments however, lease payments vary due to contingent rentals (airtime,etc).

Transfer of ownership and risks takes place at the end of the lease term provided all lease payments have been made.
28 CAsH GenerAteD By oPerAtIons Surplus for the year Adjustment for:- Depreciation and amortisation Loss / (gain) on sale of assets Bad debts written off Contribution to provisions - current Movement in employee benefits Impairment loss - receivables Capital works Decrease in reserves Interest earned Interest paid (113,553) 82,025 22,871 609 12,098 30,416 110,860 567 24,634 (1,959) - 3,911 34,346 321 - - (24,624) - (14) (18,605) 19 - operating surplus before working capital changes: 39,263 124,659 (Increase) in inventories Decrease / (increase) in trade receivables (Increase) / decrease in other receivables (Increase) in VAT receivable Decrease in fruitless and wasteful expenditure Increase / (decrease) in trade payables Increase in VAT payable Interest received Interest paid (6) 22,348 (1,422) - - 2,549 81 24,720 (46) (13,935) (199) (12) 14 (49,574) - 18,605 (19) - Cash generated by/(utilised in) operations 87,514 79,512 126 annual rePOrt 2010/2011 Notes to the Financial Statements for the year ended 31 March 2011 29 30 ProCeeDs FroM sAle oF FIXeD Assets Net book value of assets disposed (Loss) / gain on sale of assets Proceeds from sale of fixed assets CAsH AnD CAsH equIVAlents FINANCIAL STATEMENTS note 2011 r’000 2010 restated r’000 792 (609) 183 15 1,959 1,974 Cash and cash equivalents included in the cash flow statement comprise the following: Bank balances and cash net cash and cash equivalents (net of bank overdrafts) 411,928 411,928 340,825 340,825 31 unAutHorIseD, IrreGulAr, FruItless AnD WAsteFul eXPenDIture DIsAlloWeD 31.1 unauthorised expenditure Reconciliation of unauthorised expenditure Opening balance Unauthorised expenditure current year Authorised Transfer to receivables for recovery Unauthorised expenditure awaiting authorisation The overspend in the 2010 reporting period related to Members’ gratuities paid.
This was authorised and charged to the National Revenue Fund.
31.2 Fruitless and wasteful expenditure reconciliation of fruitless and wasteful expenditure Opening balance - Fruitless and wasteful expenditure current year Fruitless and wasteful expenditure closing balance Incident Cancellation fees - under investigation Interest on late payment Insurance excess to rental company where driver had not exercised proper care Previously reported as receivable Fees for course that did not meet expectations - under investigation 18 - - - - - - 23,202 (23,202) - - 761 251 1,012 646 115 761 170 187 3 - 112 539 116 1,012 - 115 annual rePOrt 2010/2011 127 Notes to the Financial Statements for the year ended 31 March 2011 31.3 Irregular expenditure reconciliation of irregular expenditure Opening balance Irregular expenditure current year note 2011 r’000 2010 restated r’000 1,915 - 10,112 1,915 Irregular expenditure awaiting condonement 12,027 1,915 Investigations have thus far indicated that the irregular expenditure arose due to non- compliance to Parliament’s procurement policy processes.
As such, no disciplinary or criminal action has been taken.
32 32.1 CAPItAl CoMMItMents Commitments in respect of capital expenditure - Approved and contracted for Capital works Other - Approved but not yet contracted for Capital works total This expenditure will be financed from: Appropriation 32.2 operating leases At the reporting date Parliament has outstanding commitments under operating leases which fall due as follows: operating leases - lessee Within one year In the second to fifth year inclusive total Operating lease payments represent rentals payable by Parliament for office equipment and rental of Parliamentary Democratic Offices.
Leases of equipment are negotiated for an average term of three years and rentals are fixed for the entire lease term.

Leases of PDO offices are subject to 8% escalation per annum and were straightlined over the period of the lease.
12,638 8,035 4,603 45,029 36,162 32,650 3,512 20,000 45,029 20,000 57,667 56,162 57,667 56,162 535 1,267 322 645 857 1,912 128 annual rePOrt 2010/2011 Notes to the Financial Statements for the year ended 31 March 2011 FINANCIAL STATEMENTS note 2011 r’000 2010 restated r’000 33 ContInGent lIABIlIty 33.1 staff litigation Labour related disputes and claims instigated by former employees 33.2 other litigation Ongoing litigation in which Parliament will possibly be liable either ex parte or as respondent in civil action.
1,100 3,175 1,000 2,300 33.3 other contingent liabilities - 1,982 Department of Foreign Affairs - foreign travel claims - evidence still to be provided.

34 reMunerAtIon oF key Personnel The aggregate compensation of the senior management of Parliament showing separately major classes of key management personnel and the respective benefits according to the headings indicated for the current and comparative period.
Presiding Officers Annual Remuneration Performance- and other bonuses Travel, motor car, accommodation, subsistence and other allowances Contributions to UIF, Medical and Pension Funds total Number of Presiding Officers included¹ ¹ Remuneration of the Speaker and Deputy Speaker of the National Assembly and the Chairperson and Deputy Chairperson of the National Council of Provinces.
key personnel Annual Remuneration Performance- and other bonuses Travel, motor car, accommodation, subsistence and other allowances Contributions to UIF, Medical and Pension Funds total number of key personnel included² ² Remuneration of the following key personnel: Secretary to Parliament Deputy Secretary Chief Operating Officer Secretary to the National Council of Provinces Secretary to the National Assembly Chief Financial Officer Divisional Managers relAteD PArtIes Related party relationship exists with all national government departments, trading entities, major state owned entities (Schedule 2), national government business enterprises (Schedule 3B) and national public entities (Schedule 3A) within the National Sphere of Government due to Parliament’s oversight of these entities.
All related party transactions are consistent with normal operating relationships between the entities, and are undertaken on terms and conditions that are normal for such transactions in these circumstances.
35 4,112 - 2,098 1,032 7,242 4 12,506 241 - 932 13,679 12 3,882 - 2,036 982 6,900 4 11,846 259 342 811 13,258 13 annual rePOrt 2010/2011 129 Notes to the Financial Statements for the year ended 31 March 2011 note 35.1 35.2 Intergovernmental receivables Departments Department of Basic Education Department of Economic Development Department of Finance Department of Higher Education Department of International Relations & Co-operation Department of Minerals & Energy Department of Police Services Department of Public Works Department of Rural Development & Land Reform Public Works Ministry Science & Technology Ministry Social Development Ministry Woman, Youth & Children Centre other government entities National Treasury Office of the President Office of the President: Cabinet Section SARS Intergovernmental payables Departments Department of Foreign Affairs Department of Health Department of Housing Department of Justice Department of Public Works Department of Public Service and Administration Department of Rural Development & Land Reform Department of Transport other government entities Government Motor Transport Government Printing Works Government Communications & Information Systems 35.3 services in kind The Parliament complexes are owned by Department of Public Works (DPW).
Parliament is occupying these complexes for no rental cost paid to DPW.

These complexes were occupied for the entire reporting period.
2011 r’000 531 109 - - 59 - 2 - 10 1 - 2 1 1 33 422 - 27 17 378 2,675 - - - 643 2,031 - 1 - 62 33 1 28 2010 restated r’000 633 127 40 25 - 39 - 2 8 1 12 - - - - 506 18 110 - 378 2,891 1,982 18 1 577 163 2 - 148 - - - - 130 annual rePOrt 2010/2011 Notes to the Financial Statements for the year ended 31 March 2011 FINANCIAL STATEMENTS note 2011 r’000 2010 restated r’000 36 36.1 rIsk MAnAGeMent Credit risk Credit risk arises from the risk that a counter-party may default or not meet its obligations timeously.
Credit risk consists mainly of cash deposits, cash equivalents and trade debtors.

Parliament only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party.

Trade receivables mainly comprise related parties, lowering counterparty risk.

Financial assets exposed to credit risk at year end were as follows: First National Bank - current accounts Nedbank - current accounts RMB - call deposit These balances represent the maximum exposure to credit risk.
liquidity risk 36.2 Liquidity risk is the risk that Parliament will not be able to pay liabilities/payables as they fall due to be paid.

Parliament manages its liquidity risk to ensure it is able to meet estimated expenditure requirements.

This is achieved through prudent liquidity risk management which includes maintaining sufficient cash and cash equivalents.
The maturity dates of Parliaments’s liabilities are set out below as undiscounted cash flows: trade and other payables Payable within 1 year Finance leases Payable within 1 year Payable within 2 - 5 years Interest rate risk Interest rate risk results from the cash flow and financial performance uncertainty arising from interest rate fluctuations.
At reporting date, financial instruments exposed to interest rate risk were as follows: 36.3 412,109 5,457 89,964 316,688 340,811 48,763 - 292,048 13.1 13.1 13.2 22 27 27 11,018 30,705 197 69 8 6 Current accounts at floating rates¹ Call deposits at floating rates¹ ¹Invested at prime less 4% for both reporting periods.
37 CoMPArIson WItH tHe BuDGet 13.1 13.2 95,421 316,688 48,763 292,048 The comparison of Parliament’s actual financial performance with that budgeted is set out in the Statement of comparison of budget and actual amounts on pages 55 to 56. annual rePOrt 2010/2011 131 Notes to the Financial Statements for the year ended 31 March 2011 38 CHAnGe In ACCountInG PolICy, CorreCtIon oF PrIor PerIoD errors AnD restAteMents statement of Financial Performance for the year ended 31 March 2010 reVenue Annual appropriation Statutory appropriation revenue from non-exchange transactions Departmental revenue revenue from exchange transactions Local and foreign aid assistance transfers, sponsorships and donations other revenue totAl reVenue eXPenDIture Current expenditure Cost of sales Compensation of employees/ Compensation of Members and employees Goods and services / general expenses Financial transactions in assets and liabilities / Depreciation and amortisation Local and foreign aid assistance / Donor projects Interest paid Balance as previously reported restatements GrAP adjustments restated balance note r’000 r’000 r’000 r’000 1,108,002 398,133 1,506,135 29,902 29,902 6,625 6,625 1,542,662 - - 1,506,135 (23,615) 6,414 2,744 18,784 (2,087) 48,756 - 48,756 58,125 19,322 1,589,996 38.7 4,249 (6) 4,243 38.3 794,066 399,101 22,283 6,609 828,412 (4,254) (8,136) 386,711 (395) - 2,746 257 - 24,634 6,866 - Total current expenditure 1,222,059 (400) (5,139) 1,250,866 Transfers and subsidies/ Transfers to non-profit institutions surPlus/(DeFICIt) For tHe yeAr Gain/ (loss) on sale of fixed assets (Impairment loss) / Reversal of impairment loss Inventories: (Write-down) / reversal of write-down to net realisable value 258,743 - 61,860 (1,687) 53,895 1,959 (398) 77 258,743 80,387 1,959 (321) - surPlus/(DeFICIt) For tHe yeAr 61,860 (126) 53,972 82,025 132 annual rePOrt 2010/2011 38.5 , 38.8 38.5 38.7 38.4 Notes to the Financial Statements for the year ended 31 March 2011 FINANCIAL STATEMENTS Balance as previously reported restatements GrAP
 adjustments restated balance note r’000 r’000 r’000 r’000 statement of Financial Position as at 31 March 2010 Assets Current assets Irregular expenditure Fruitless and wasteful expenditure Cash and cash equivalents Inventory Prepayments and advances Receivables Receivables from non-exchange transactions VAT receivable non-current assets Tangible capital assets/ Property, plant and equipment Intangible capital assets 384,104 189 12,642 340,825 245 3,120 27,083 - - 79,041 138,657 2,409 (6) (189) - 103 3 77 (78) (23,979) 23,890 11 - 17,274 (98,898) (2,109) 13,753 (238) Heritage assets - 35,910 6,831 Less: Accumulated depreciation (62,025) 65,097 (3,072) 384,020 - 12,642 340,825 348 3,123 3,181 23,890 11 96,315 53,512 62 42,741 - 38.1 38.2 38.3 38.4 38.5 38.5 38.6 totAl Assets lIABIlItIes 463,145 (78) 17,268 480,335 Current liabilities Payables Current provisions Finance leases - current non-current liabilities Non-current unspent conditional grants and receipts Employee benefits Finance leases totAl lIABIlItIes net Assets net Assets Reserves Accumulated surplus / (deficit) - - - - - 188,424 188,424 - 188,424 274,721 12,098 262,623 (613) (48,382) 139,426 (53,999) 53,386 (48,389) 7 86,033 53,386 7 38.7 , 38.8 38.5 (5,164) 573,275 568,111 - (5,164) - (5,777) 5,699 - - 573,270 5 524,893 (507,625) 568,106 5 38.10 38.5 707,537 (227,202) (12,098) - (495,527) (227,202) 38.9 38.11 total net assets 274,721 - (507,625) (227,202) annual rePOrt 2010/2011 133 Notes to the Financial Statements for the year ended 31 March 2011 38.1 reversal of irregular expenditure The purchase of furniture and fittings in contravention of the procurement policy was capitalised as at date of purchase and depreciated to date subsequent to condonement.
38.2 reversal of fruitless and wasteful expenditure The remaining balance of fruitless and wasteful expenditure of R17.2 million of which R5.1 million was recovered was derecognized as it no longer meets the definition of an asset.

During the 2010 reporting period an amount of R13,661 was recovered.

38.3 38.4 38.5 Inventory Previous provisions raised against inventory have been reversed and a revised provision for obsolescence has been recognised.
reversal of provision for doubtful debts Relates to provision that was made for related parties, not based on an individual assessment of impairment indicators, but on number of days outstanding.
Property, plant and equipment The following changes in accounting policy were affected to property, plant and equipment and intangible assets: • Assets that were previously expensed have now been recognised as these meet the definition of an asset • Cell phone handsets and modems under contract have been capitalised as the nature of the agreement constitutes a finance ease in terms of GRAP 13 - Leases All assets verified, but not found on the fixed asset register during an asset verification exercise were added at a nominal value pending measurement during the transitional measurement period in terms of Directive 8 * All assets not verified during an asset verification exercise were derecognised * Transfers were made between asset classes 38.6 Heritage assets Heritage assets were recorded at deemed cost as determined by a fair value exercise performed by an independent valuer in 2008.
All further additions were recognised at cost.

38.7 recognition of eu funding A budget support payment from the European Union was recognised as revenue as there are no conditions attached to the receipt of the funds.

This is in terms of GRAP 23 - Revenue from non-exchange transactions.

38.8 straight lining of operating leases Parliament does not have a lease agreement with Department of Public Works (DPW) for the Cape Town premises.
Leases however exist with DPW for two Parliamentary Democratic Offices (PDOs).

These lease payments were accrued for and straight-lined over the remaining term of the lease.

38.9 transfer of the recoverable revenue reserve to accumulated surplus The recoverable revenue reserve has been transferred to accumulated surplus with effect from initial recognition.
38.10 Post-retirement employee benefits Parliament’s liability to provide post-retirement benefits for Members of Parliament has been provided for in terms of an actuarial valuation.
38.11 reconciliation of impact on net assets Impact on accumulated surplus Transfer of recoverable revenue Reverse transfer from recoverable revenue Impact on comparative Statement of Financial Performance Total change in net assets EVENTS AFTER REPORTING DATE There were no events after the reporting date which were identified.. 39 (522,101) 12,098 14 53,972 (456,017) 134 annual rePOrt 2010/2011 FINANCIAL STATEMENTS Notes to the Financial Statements for the year ended 31 March 2011 STATEMENT OF COMPARISON OF BUDGET TO ACTUAL INFORMATION r thousands or r reference Approved budget Final Budget Actual outcome Prepared on a cash basis Variance reference InCoMe Annual appropriation Statutory appropriation Departmental revenue Interest received Transfers, sponsorships and donations eXPenses Capital expenditure Compensation of employees Compensation of members Suppliers Interest paid Transfers to non-profit institutions 1,201,621 392,679 - - 1,201,621 392,679 - - 1,201,621 392,679 8,021 24,720 - - - (8,021) (24,720) - 1,594,300 1594,300 1,627,041 (32,741) 10,809 475,440 392,679 430,550 - 284,822 16,901 456,375 392,679 492,087 - 281,914 16,837 419,927 381,132 477,979 19 281,925 64 36,448 11,547 14,108 (19) (11) 1,594,300 1,639,956 1,577,819 62,137 (DeFICIt)/surPlus - (45,656) 49,222 (94,878) 1.
Parliament’s budget is approved on a cash basis by functional classification.

The approved budget covers the fiscal period from 1 April 2010 to 31 March 2011.

2.

The material differences in actual expenditure over the final budget relates to the following: a) Underspending on Compensation of employees 8.0 % (11.7 % over approved budget) which is due mostly to the delay in recruitment of specialists for Committee support in the Legislation and Oversight Division.
b) Underspending of 11.1 % for suppliers which is due to goods and services procured before 31 March 2011 but not paid for.

This amount is included in payables.

c) Underspending of 2.9 % for compensation of members.

This is due to an amount provided for in the budget to cover loss of office gratuity for members leaving parliament.

The expenditure is dependant on members leaving Parliament.

3.

The budget and the basis of accounting differ.


The financial statements for Parliament are prepared on the accrual basis using classification based on the nature of expenses in the statement of financial performance while the budget is approved on the cash basis.

4.

The amounts in the financial statements were recast from the accrual basis to the cash basis and reclassified by functional classification to be on the same basis as the final approved budget.
In addition, adjustments to amounts in the financial statements for timing differences associated with the continuing appropriation were made to express the actual amounts on a comparable basis to the final approved budget.

The amounts of these adjustments are identified in the following table: 5.
A reconciliation between the actual amounts on a comparable basis as presented in the Statement of Comparison of Budget and Actual Amounts and the actual amounts in the Statement of Cash Flows for the Year Ended 31 March 2011 is presented below.

The financial statements and budget documents are prepared for the same period, but there is a basis difference in that the budget is prepared on a cash basis and the financial statements on the accrual basis.

6.
6.

The deficit of 45,656m of actuals over budget was funded by use of retained funds from prior years which were approved by the Executive Authority of Parliament.

This was utilized for upgrading of certain locations in the precinct of Parliament i.e.

committee rooms and office space.
annual rePOrt 2010/2011 135 Notes to the Financial Statements for the year ended 31 March 2011 Actual Amount on Comparable Basis as Presented in the Budget and Actual Comparative statement (28,755) (16,901) - (45,656) Operating Investing Financing Total Basis Differences Statutory appropriation for prior year only received in 2011 Short-term employee benefit accruals included in budget Accruals for goods and services included in budget Capital works Sales of assets not budgeted for Deemed finance leases not budgeted for 98,264 21,455 32,407 44,402 183 242 183 242 242 98,689 21,455 32,407 44,402 - 183 242 71,103 Actual Amount in the Statement of Cash Flows 87,514 (16,653) 136 annual rePOrt 2010/2011 Notes Notes PO Box 15 Cape Town 8000 Republic of South Africa Tel: 27 (21) 403 2911 www.parliament.gov.za