Legislatures have traditionally appointed a policy-making authority and a directing authority to determine, control and manage these services and facilities, and have set up an administration under a managing authority.

The money required to fund these services is generally appropriated by the parliament concerned, as a separate allocation. The actual amount required and the control of the expending thereof, is generally independently determined by the financial authority designated by the legislature concerned. Generally, the directing authority of a legislature and its financial authority vest in the same person or body.

The Constitution provides for Parliament to determine and control its internal arrangements, proceedings and procedures. Currently, Parliament does this by way of the Rules Committees of each of the Houses and the Joint Rules Committee. The Joint Rules Committee is designated as the highest governance structure in Parliament; it sets policy and approves the budget.

It has been realised that the JRC is dysfunctional as a governance structure and an alternative governance model has been proposed.

 2. Governance framework

The governance framework for Parliament is established by the Powers, Privileges and Immunities of Parliament and Provincial Legislatures Bill, the applicable provisions of the Public Finance Management Act and the Joint Rules of Parliament.

This framework directly or by delegation provides for the appointment of an accounting officer, the determination and approval of the budget and determines the structure and functions of the Parliamentary Service. It also provides for the publication and tabling of an annual report.

The National Assembly elects the Speaker and Deputy Speaker and the National Council of Provinces elects the Chairperson and the Deputy Chairpersons, collectively referred to as the Presiding Officers. Both Houses confer on the Presiding Officers powers and entrusts them with the responsibility of running the affairs of Parliament.

Given the fragmented nature of the governance framework, it is essential that a process be embarked upon to ensure that Parliament adopts a single governance instrument, which clearly defines the powers and functions of the Presiding Officers and that of the Accounting Officer.

As stated above, the current governance system for Parliament with the Joint Rules Committee as the highest governance structure is dysfunctional as a governance structure and an alternative governance model is being proposed.

The governance model is outlined in the diagram that follows with the accompanying set of definitions and explanations that define and explain the various authorities and concepts outlined in the model.

"parliamentary business" – activities involving members executing functions of lawmaking and oversight.

"policy making authority" – that is Parliament that determines policy and instructs the directing authority.

"parliamentary business" –

• NA and NCOP Rules Committees make rules and procedures (policy ) concerning the business of the respective Houses. The Rules Committees are chaired by the respective Presiding Officers
• Joint Rules Committee makes rules and orders (policy) concerning the joint business of the NA and the NCOP
• NA and NCOP Programming Committees organise the parliamentary programme
• Ad hoc parliamentary committees are established as and when required for specific tasks
• Other parliamentary committees dealing with the internal business of Parliament, for example, Constitutional Review Committee, Mediation Committee, JSC on Defence, JC on Ethics and Members’ Interests, etc.

"directing authority" – the authority that interprets policy formulated by the policy-making authority, and determines the actual level of services. This will be explained in greater detail later

"Parliamentary Service Administration" – the Parliamentary Service administers and implements policy as formulated by Parliament and directed by the Directing Authority

The various authorities determined by the proposed governance model for Parliament can only be effected through the setting up of the appropriate structures. The composition of these structures, its mandate, scope, functions and responsibilities, authority and accountability has to be determined. The necessary operating procedures and requisite support have to be outlined.

6. Directing authority

The proposed governance model provides for a directing authority that accounts to Parliament, that is both Houses and has the following responsibilities:

1. formulates policy directives for the various services and facilities of Parliament;
2. ensures policy implementation by giving a broad indication of the levels and extent of the required services and facilities for Parliament and monitoring the implementation thereof.

Herewith follows a recommended outline of such directing authority.

To put in place an appropriate system of governance by which Parliament is managed and controlled in support and furtherance of its strategies and policies.

2. Functions and responsibilities

The directing authority is responsible for all governance matters such as directing and planning, determining resources requirements, and reporting on its operations.

This would specifically entail the following;

1. Ensuring compliance with applicable legislation;
2. Setting the strategic direction, objectives and priorities of Parliament;
3. Determining policy parameters;
4. Agreeing key performance indicators in terms of the MTEF;
5. Delegating to management the detailed planning and implementation of that policy;
6. Ensuring compliance with accounting standards and policy;
7. Receives inputs from the Quarterly Forum on matters pertaining to members facilities and interests.
8. Considering reports from committees established by it, for example:

1. the audit committee
2. the remuneration committee (to consider the remuneration of senior Parliamentary Service managers).

9. Provide authorisation for decisions having a financial impact with regard to

1. setting budget compilation parameters and policy
2. setting accounting policy and standards
3. review of annual and adjustments estimates
4. quarterly performance reviews of measurable objectives, including the review of management and statutory financial reports
5. authorising returns of direct charges against the National Revenue Fund.

The directing authority should be composed of:

1. the Speaker of the National Assembly
2. the Chairperson of the National Council of Provinces
3. the Deputy Speaker of the National Assembly
4. the Deputy Chairperson of the National Council of Provinces
5. the Chief Whip of the Majority Party in the National Assembly
6. the Chief Whip of the largest Opposition Party in the National Assembly
7. the Chief Whip of the second largest Opposition Party in the National Assembly
8. the Chief Whip in the National Council of Provinces
9. the Secretary to Parliament

Members of the directing authority shall be appointed for the period that the member holds office in the designated position listed above.

In respect of the exercise and performance of its functions and powers, the members of the directing authority shall be collectively accountable to the Speaker and Chairperson, who shall be accountable to Parliament.

4. Chairperson

The Speaker and the Chairperson are Co - Chairpersons.

5. Procedure of the directing authority

1. The directing authority may regulate its proceedings and perform its functions in such a manner as it may deem fit;
2. Meetings shall be held at least quarterly or as the Chairperson may determine;
3. At any meeting the quorum shall consist of six members;
4. The directing authority shall operate in a manner that strives to reach consensus;
5. In the absence of consensus, the Speaker and Chairperson may perform all the functions and exercise all the powers conferred on the directing authority.

The directing authority may, subject to such conditions as it may determine assign or delegate in writing any function or power to a member.

The directing authority may from time to time appoint a competent person or persons to advise it on such matters within the scope of its functions and powers as it deems necessary.

9. Annual report

The directing authority shall prepare a report of its operations during a financial year and table it in Parliament within the timeframes prescribed by the appropriate financial management legislation.

10. Administrative support

Adequate administrative and content support capacity should be provided and budgeted for.

The Parliamentary Service administers and implements policy as formulated by Parliament and directed by the Directing Authority. The Parliamentary Service has as its head the Secretary to Parliament who is appointed by resolution of both Houses as the chief executive officer and accounting officer who is responsible for the management of the administration and the Parliamentary budget once it is passed. The Secretary to Parliament is accountable to the Presiding Officers (who represents the Houses).

Whilst the directing authority is the supervisory body of the Parliamentary Service with the responsibility of setting policy and direction and taking decisions, it is advised and assisted by the Secretary to Parliament and the Parliamentary Service Administration. It is advised that the duties of the Secretary to Parliament should be set out in an instrument of delegation.

As stated, the Directing Authority nominates a person to be appointed as Secretary to Parliament. A Deputy Secretary and an Assistant Secretary, appointed by the Houses, assist the Secretary to Parliament. They constitute the Secretariat.

The Secretary shall have the responsibility to:

1. set Objectives and Strategise (outputs)
2. prepare budget and allocations
3. implement the strategic plan (deliver outputs)
4. report and account to Directing Authority
5. Provide assistance to the National Assembly and the National Council of Provinces in conducting its proceedings, procedures, and business and to enforce its rules and orders;
6. Provide administrative assistance to the Presiding Officers and other members of Parliament;
7. Manage the Parliamentary Service Administration.

Each House appoints a Secretary to assist the Secretary to Parliament in the discharge of her or his duties in conducting the proceedings, procedures, and business and to enforce its rules and orders of each of the Houses. Both these Secretaries assist the Presiding Officers of the Houses in discharging their duties as Speaker of the National Assembly and the Chairperson of the National Council of Provinces respectively. Both the Secretary to the National Assembly and the Secretary to the National Council of Provinces are accountable to the Secretary to Parliament.

A Management Committee appointed by the directing authority, chaired by the Secretary to Parliament assists in the management of the Parliamentary Service Administration. The Management Committee is composed of:

1. The Secretariat
2. The Secretary to the National Assembly
3. The Secretary to the National Council of Provinces
4. The Chief Finance Officer

The Secretary to Parliament shall determine the proceedings and the manner of operation of the Management Committee. Meetings of the Management Committee shall be held monthly or as the Secretary determines from time to time.

The Office of the Secretary provides the secretariat for the Management Committee to Parliament.

The Secretary to Parliament exercises the functions of the employer on behalf of the directing authority and is responsible for conditions of service. Further, the Secretary supported by the Chief Finance Officer tables the draft budget for Parliament with the directing authority for approval. Decisions by the Management Committee on expenditure are subject to the control of the Secretary to Parliament as accounting Officer who in turn shall be accountable to the directing authority for expenditure and appropriation of monies.

The interface between the directing authority and the managing authority should be formal and structured. The format and content of the interface should happen according to a prescribed and structured agenda. This interface should have a clear set of procedures with regard to when and how meetings will occur and what responsibilities are assigned to the role players that make up the two levels of authority.

This interface is called an executive management process and is normally performed by an Executive Committee (EXCO). The composition of the EXCO is the Presiding Officers and the Secretariat. Its primary purpose would be to monitor the operationalisation of the strategic plan and policy decisions made by the directing authority.

1. Purpose of Audit Committee

The purpose of the Audit Committee is to assist the Accounting Officer in fulfilling his/her oversight responsibility for the financial reporting process, the system of internal control over financial reporting, the audit process and the process for monitoring compliance with laws and regulations and the code of conduct.

In performing its duties, the committee will maintain effective working relationships with the Accounting Officer, Management and the Internal and External Auditors.

To perform his or her role effectively, each committee member will obtain an understanding of the detailed responsibilities of the committee membership as well as Parliament’s business, operations and risks.

The Audit Committee should assist the Accounting Officer in carrying out his oversight responsibilities as they relate to the Parliament:

1. financial, management and other reporting practises
2. internal control and management of risks
3. compliance with laws, regulations and ethics
4. corporate governance

The Audit Committee should report to the Accounting Officer any matter identified during the course of carrying out its duties that it considers significant.

The Audit Committee must report on findings by internal and external audit and make recommendations to the Accounting Officer, but the Accounting Officer retains responsibility for implementing such recommendations through Management.

The Audit Committee must consider the appropriateness of Parliament’s accounting policies and principles and in so doing review the application and currency, and adherence to the stated financial reporting framework.

The Audit Committee must:

1. evaluate the financial statements for reasonability and accuracy;
2. report on the effectiveness of internal control in the annual report;
3. review the management reports and cash flows;
4. deal with issues raised by Standing Committee on Public Accounts.

The Audit Committee must:

1. evaluate, through reviewing internal and external audit reports, that the organisation is in compliance with its own policies and procedures;
2. ensure that the organisation reports on the attainment of specific goals and objectives developed in the strategic plans;
3. ensure that the code of conduct is in writing and is communicated to Management and all employees;

5. Structure of the Committee

The Audit Committee will comprise of at least four members, all of whom shall be non-executive members. The Chairperson shall be appointed by the Presiding Officers, and will preside over meetings.

The following persons are invited to all Audit Committee meetings:

1. Office of the Auditor General
2. Manager: Internal Audit (who shall provide the Secretariat function of the Committee) and the internal audit service provider
3. The Secretary to Parliament and Senior Management members
4. Any other such persons as is deemed necessary for the proceedings

The Audit Committee members shall serve for a period of 5 years.

The quorum for meetings will be 50%, ie 2 members.

The Audit Committee shall hold at least 2 (two) formal meetings within a financial year. Special meetings may be convened as and when required. The proceedings of all meetings will be documented in minutes.

The following is an outline of the purpose and functions of a Remuneration Committee.

Levels of remuneration paid to senior management employed by Parliament should be sufficient to attract, retain and motivate executives of the quality required by the Directing Authority. Compensation should accurately reflect the responsibilities and risk involved in the executive post being considered.

To this end Parliament should establish a formal and transparent procedure for developing a policy on executive remuneration, which should be supported by a statement of remuneration philosophy in the annual report.

The committee should :

1. Determine and agree with the Directing Authority the framework or broad policy for the remuneration of the Secretary to Parliament, Deputy Secretary to Parliament, Assistant Secretary to Parliament and other senior managers within the Parliamentary Service;
2. Determine targets for any performance-related pay schemes operated by Parliament;
3. Review all contracts of employment pertaining to senior managers;
4. Ensure that contractual terms on termination, and any payments made, are fair to the individual and to Parliament, that failure is not rewarded and that duty to mitigate loss is fully recognised;
5. Be aware of and advise on any major changes in employee benefit structures within Government and the private sector;
6. Agree the policy for authorising claims for expenses from senior managers;
7. Receive and consider the contents of any disclosure registers to which senior managers must subscribe;

Recommendations made by the Remuneration Committee should be reviewed and ratified by the Directing Authority before being implemented by management.

The Joint Rules Committee has to consider and adopt the proposed governance model and affect the necessary amendments to the Joint Rules.

The amendments to the Joint Rules have to be tabled in both the National Assembly and the National Council of Provinces for approval.

Hereunder is a list of Joint Rules that have to be repealed in order to implement the governance model for Parliament.

(g) becomes (a)

(e) becomes (b)

(f) becomes (c)

(d) remains as (d)

(i) becomes (e).

In order to implement the proposed governance model and decision-making process for Parliament, the necessary rules must be drafted, introduced and approved in the Joint Rules Committee.

The Rules of both the National Assembly and the National Council of Provinces, where necessary, have to be brought in line to give effect to the new governance and decision-making process.

The relevant legislation affecting the governance of Parliament such as the Powers and Privileges of Parliament Act, 1963 and the Public Finance Management Act, 1999 have to be amended. However, cognisance must be taken of legislation like the Powers, Privileges and Immunities of Parliaments and Provincial Legislature Bill and the proposed Financial Management of Parliament and Provincial Legislatures Bill.

The appropriate regulations (Treasury Regulations for Parliament) and related procedures emanating from the above legislation have to be drafted, approved and implemented.