The Chief Financial Officer (CFO) is in charge of Corporate Services which cover the following components:
• Financial Management (headed by the Finance Manager who is responsible for budgeting, accounts and expenditure)
• Supply Chain Management (headed by the Supply Chain Manager)
• Security Services (headed by the Security Manager)
• Information Technology (headed by the ICT Manager)
The CFO plays an important role in the running of the Legislature because all activities are undertaken on his recommendations, provided funds are available to meet financial commitments.
Budget of the KZN Legislature
The services rendered by the Legislature are categorised under three programmes which largely conform to the generic budget structure for all provincial legislatures, viz:
Programme 1: Administration
Programme 2: Legislative Services
Programme 3: Facilities for Members and Political Parties
Programme 1: Administration
This programme consists of four sub-programmes, namely:
• Office of the Speaker
The Office of the Speaker is responsible for policy implementation and the provision of support services to the Speaker and Deputy Speaker.
• Office of the Secretary
The Office of the Secretary manages and supports the line function components of the Legislature in achieving their goals.
• Financial Management
This sub-programme caters for the Office of the Chief Financial Officer, Internal Control and Procurement Management and is responsible for providing expertise and advice in terms of financial management, planning the departmental budget, procurement management and monitoring and evaluating expenditure and revenue collection.
• Corporate Services
This sub-programme is responsible for the provision of support services, human resource management, safety services and skills development in accordance with the Skills Development Act and ICT Services. The budget for building renovation costs and other major procurement costs is centralised under this sub-programme.
Programme 2: Legislative Services (Operational & Institutional Support)
This programme consists of seven sub-programmes and the main objectives and services of these sub-programmes are as follows:
• To provide library, research and archive services
• To provide services with regard to legislation, petitions and legislative procedure, etc.
• To facilitate public involvement in the legislative and policy formulation process of the KZN Legislature
• To consider legislation referred to the provincial Legislature by the NCOP
• The provision of secretarial services to committees of the Legislature
• Reporting, interpreting and publication of debates
Programme 3: Facilities for Members and Political Parties
This programme consists of two sub-programmes, namely Facilities and Benefits to Members and Political Support Services.
The purpose of this programme is to render administrative support services to political office-bearers and other Members of the Legislature with regard to facilities and benefits.
• Facilities and Benefits to Members This sub-programme caters for items such as telephone allowances, flights, travel and subsistence costs, stationery and other items relating activities by portfolio committees, standing committees and public participation events.
• Political Support Services
This sub-programme makes provision for constituency allowances, secretarial allowances and political party funding, with the entire budget allocated to Transfers and Subsidies to Non-Profit Institutions.
Constituency allowances are paid to political parties represented in the Legislature to set up an infrastructure for the benefit of constituents.
The amount payable per member of the KwaZulu-Natal Legislature is set at R37 576,81 per month and is paid into a political party’s bank account.
Section 116 (2) ( c) of the Constitution directs provincial Legislatures to provide for financial and administrative assistance to each political party represented in the Legislature, in proportion to its representation, to enable the party and its leader to perform their functions in the Legislature effectively.
The current payment to parties is R23 194,54 per month per unit of six members. Parties with fewer than six members qualify as a full unit.
Political Parties’ Fund
The Political Parties’ Fund is aimed at assisting political parties to carry out their constitutional mandate of advancing ideals of democracy. The allocation of money to the political parties is based on a prescribed formula –
• In part, on the system of proportionality, taking into account the relation that the number of such a party’s representatives in the provincial Legislature bears to the total number of the members in the provincial Legislature; and
• In part, on the principle of equity, which may take into account, among other factors, a fixed threshold for a minimum allocation to each of the parties represented in the provincial Legislature or a weighted scale of representation for an allocation to each of the parties participating in the provincial Legislature.
Members’ remuneration forms a direct charge on the Provincial Revenue Fund, and is therefore not included in the three budget programmes mentioned above.
The timetable below is provided by the provincial Treasury and is normally used by the Legislature as a guide for the planning and budgeting process:
Payments on SAP ERP system
In 2012 the Legislature implemented an Enterprise Resource Planning (ERP) system replacing the BAS financial system, Persal system and Hardcat asset management system. The integrated system is responsible for all payments made by the institution, including:
• Subsistence and travel claims
• Flights and accommodation
• Allowances for official visits abroad
• Claims for parliamentary sittings and official openings
• Telephone allowances
• Constituency and secretarial allowances
• Funding for political parties
• Members’ support, e.g. laptops, pension and medical aid contributions, etc.
• Commonwealth subscriptions
• Taking the Legislature to the People initiatives
• Sector Parliaments
• Catering services for business activities
• Public hearings
• Cluster committee visits
• Official funerals
The claims listed above are regulated by the Members’ Guide; departmental policy on travel and subsistence; Department of Transport rates and tariffs; Speaker’s approvals and Political Party Fund Act.
Members of the Legislature are paid salaries and allowances out of Statutory Fund forming a direct charge from the Provincial Revenue Fund which is authorised by the Public Office Bearers’ Remuneration Act. Members are paid according to differentiated levels, namely ordinary new Members; ordinary old Members; Chairpersons of Committees; Whips of Political Parties; Chief Whip of the Legislature, etc.
Administration employees are paid according to an approved organisational structure and remuneration policy. This is controlled by the SAP system.
The Speaker and the Deputy Speaker of the Legislature are excluded from the allocation of Members Remuneration (i.e. the Statutory Fund) because they are engaged in administrative services for more than 60% of their time rather than on political matters. They are therefore paid from a normal operational budget for voted services where the Speaker serves as the MEC responsible for the Legislature, with the Secretary of the Legislature serving as the accounting officer.
The Legislature is an autonomous body and not a government department in the true sense of the word. In the absence of its own regulations, which are still in the form of a draft Bill, it complies with the relevant sections of the Public Finance Management Act regulations for government departments. The set of books are kept according to generally recognised accounting practices.
The above-mentioned responsibilities, clearly defined in the organisational structure of the Legislature, are controlled by the strategic leadership and/or key management personnel, namely the Speaker, the Secretary to the Legislature, the Chief Financial Officer and the Chief Operations Officer. They submit an annual report at the end of each year. Line managers and other staff occupying positions the structure strive to meet the strategic goals, annual operational plan (AOP), annual financial statements and all other defined business activities within the given budget of the Legislature.
Office of Chief Financial Officer
Ground Floor: Administrative Building
244 Langalibalele Street
Manager: Mr Mohlomi Ronald Nkopane
Office: 033 3557550/1
Fax: 033 3557747