ARRANGEMENT OF SECTIONS

1. In this Act, unless the context indicates otherwise—

"Accounting Officer" means the Secretary to Parliament, and includes, where appropriate, a person acting as the Accounting Officer;

"Accounting Standards Board" means the board established in terms of section 87 of the Public Finance Management Act;

"annual report", means the annual report referred to in section 46;

"approved budget" means Parliament’s vote on the national annual budget as approved by Parliament or revised in an adjustments budget by Parliament;

"Executive Authority" means the Speaker of the National Assembly and the Chairperson of the National Council of Provinces, acting jointly;

"financial year" means a year ending 31 March;

"fruitless and wasteful expenditure" means expenditure that was made in vain and would have been avoided had reasonable care been exercised;

"irregular expenditure" means expenditure, other than unauthorised expenditure, incurred in contravention of or that is not in accordance with a requirement of this Act or any other applicable legislation;

"main division" means one of the main segments into which Parliament's vote is divided and which specifies the total amount which is appropriated for the items under that segment;

"month" means one of the 12 months of a calendar year;

"official" means an employee of Parliament or any other person to whom any function is delegated in terms of this Act;

"overspending"—

1. in relation to the vote of Parliament, means causing expenditure under the vote to exceed the amount appropriated for the vote; or
2. in relation to a main division within the vote of Parliament, means causing expenditure under the main division to exceed the amount appropriated for that main division;

"prescribe" means prescribe by regulation or instruction in terms of section 56;

"Public Finance Management Act" means the Public Finance Management Act, 1999 (Act No. 1 of 1999);

"quarter" means any of the following periods in a financial year:

1. 1 April to 30 June;
2. 1 July to 30 September;
3. 1 October to 31 December; or
4. 1 January to 31 March;

"standards of generally recognised accounting practice" means an accounting practice complying in material respects with standards issued by the Minister of Finance on the advice of the Accounting Standards Board;

"unauthorised expenditure" means—

overspending of Parliament's vote or a main division within that vote;

any expenditure from Parliament’s vote or a main division within the vote for a purpose unrelated to the vote or main division, subject to section 18; or

1. any expenditure of money appropriated for a specific purpose, otherwise than for that specific purpose;

"vote" means Parliament’s vote on the national annual budget referred to in section 27 (1) of the Public Finance Management Act;

In this Act, a word or expression derived from a word or expression defined in subsection (1) has a corresponding meaning unless the context indicates that another meaning is intended.

2. The objects of this Act are -

1. to ensure transparency, accountability and sound management of the revenue, expenditure, assets and liabilities of Parliament;
2. to establish norms and standards for the managing the financial affairs of Parliament and the provincial legislatures.

2. Provincial legislatures must adhere to the norms and standards for financial management set out in Schedule 1.

2. The Executive Authority of Parliament is the Speaker of the National Assembly and the Chairperson of the National Council of Provinces, acting jointly.

2. The Executive Authority –

1. is responsible for controlling the revenue, expenditure, assets and liabilities of Parliament; and
2. is accountable to Parliament for the sound financial management of Parliament.

4. This Act is administered under the control of the Executive Authority by the Secretary to Parliament who is the Accounting Officer of Parliament.

5. The Accounting Officer is responsible for the financial management of Parliament, and for this purpose must ensure that —

1. Parliament’s resources are used effectively, efficiently and economically;
2. full and proper records of the financial affairs of Parliament are kept;
3. Parliament maintains effective, efficient and transparent systems of financial management, risk management, internal control and internal audit;
4. Parliament has appropriate systems to manage the performance of its officials;
5. there are suitable training and awareness programmes related to financial management for officers of Parliament;
6. unauthorised, irregular and fruitless and wasteful expenditure and other losses are prevented; and
7. disciplinary or, when appropriate, criminal proceedings are instituted against any official who has allegedly committed an act of financial misconduct or an offence in terms of Chapter 9.

6. The Executive Authority and the Accounting Officer must annually conclude a written performance agreement for the Accounting Officer.

2. The performance agreement referred to in subsection (1) must –

1. be concluded within a reasonable time after the Accounting Officer is employed and thereafter within one month after the start of each financial year; and
2. specify performance standards linked to the objectives and targets of Parliament’s strategic plan for the financial year; and
3. provide for an annual assessment of the Accounting Officer’s performance by the Executive Authority; and
4. specify the consequences of sub-standard performance.

The provisions of this Act conferring responsibilities on the Accounting Officer are part of the performance agreement of an Accounting Officer.

The annual assessment the Accounting Officer’s performance must take cognisance of the audit report on the annual financial statements of Parliament.

7. If the post of Accounting Officer is vacant, or if the Accounting Officer is unable to perform the functions of the post, those functions must be performed by –

1. the Deputy Secretary to Parliament; or
2. if the post of Deputy Secretary is vacant, or the Deputy Secretary is unable to perform those functions, another official of Parliament designated in writing by the Executive Authority.

8. The Accounting Officer, with the concurrence of the Executive Authority, must develop an appropriate system for delegating responsibilities in order to –

1. maximise administrative and operational efficiency; and
2. provide adequate checks and balances in the financial management of Parliament.

(2) The Accounting Officer, in accordance with that system, may delegate to an official any powers or duties–

1. of the Accounting Officer in terms of this Act; or
2. reasonably necessary to assist the Accounting Officer in exercising a power or complying with a duty assigned to the Accounting Officer in terms of this Act.

(3) The Accounting Officer must regularly review delegations in terms of subsection (2) and, if necessary, amend or withdraw any of those delegations.

1. must be in writing;
2. is subject to any limitations and conditions the Accounting Officer may impose;
3. may be to an individual or to the holder of a specific post in the administration of Parliament;
4. may authorise that official to sub-delegate, in writing, the delegated power or duty to another official, or to the holder of a specific post in the administration of Parliament; and
5. does not divest the Accounting Officer of responsibility for the exercise of the delegated power or the performance of the delegated duty.

2. The Accounting Officer may confirm, vary or revoke any decision taken by an official in terms of a delegation under subsection (2), subject to any rights that may have become vested as a consequence of the decision.

8. Every official of Parliament who exercises financial management responsibilities must –

1. comply with the provisions of this Act, to the extent applicable to that official;
2. comply with the terms of any delegations in terms of section 8;
3. take all reasonable steps within that official’s area of responsibility to ensure —

1. that Parliament’s system of financial management and internal control is implemented diligently;
2. that Parliament’s financial and other resources are used effectively, efficiently, economically and transparently;
3. that any unauthorised expenditure, irregular expenditure, fruitless and wasteful expenditure and other losses are prevented, and, when such expenditure or losses occur, are reported to the Accounting Officer;
4. that all revenue due to Parliament is collected;
5. that Parliament’s assets and liabilities are managed effectively, and that assets are safeguarded and maintained to the extent necessary.

8. The Accounting Officer and other officials with responsibility under this Act must—
1. act with fidelity, honesty, integrity and in the best interests of Parliament in managing its financial affairs;
2. disclose all material facts which are available to that person or reasonably discoverable, and which in any way might influence any decision or action in terms of this Act; and
3. seek to prevent any prejudice to the financial interests and good reputation of Parliament.

2. For the purposes of subsection 1(b), any disclosure must be made –
1. in the case of the Accounting Officer to the Executive Authority; and
2. in the case of any other person, to the Accounting Officer.
3. No one having responsibility under this Act may —
1. act in a way that is inconsistent with the Act; or
2. use the position or privileges of, or confidential information obtained in the exercise of their responsibilities, for personal gain or to benefit improperly any other person.

11. The Executive Authority is responsible for ensuring that a strategic plan and budget are prepared.

1. a strategic plan for Parliament’s administration covering the following financial year and the two financial years thereafter or other period determined by Parliament; and
2. a draft budget for Parliament’s administration;

12. The strategic plan for Parliament’s administration must –

1. indicate the priorities of Parliament’s administration for the financial years to which it relates;
2. include objectives and outcomes for each main division within Parliament's vote;
3. include multi-year projections of revenue and expenditure; and
4. include performance measures and indicators for assessing the administration’s performance in delivering the desired outcomes and objectives.

13. Parliament’s budget must –

1. contain particulars of Parliament's proposed budgetary requirements for that year, specifying the total amount required –
1. by Parliament under its vote; and
2. for each main division within Parliament's vote and the purpose of each main division;
2. contain explanations and other information substantiating the amounts proposed in terms of paragraph (a); and
3. be in accordance with the format prescribed by the Minister of Finance under section 27(3) of the Public Finance Management Act.

13. The Accounting Officer must submit the strategic plan and draft budget to the Executive Authority for approval at least six months prior to the start of the financial year or by a prescribed date.

2. The Executive Authority must -

1. submit the approved strategic plan and draft budget to an appropriate consultative body established in terms of the Rules of Parliament for approval at least one month before the budget must be submitted to the National Treasury;
2. consult with the Minister of Finance before national annual budget is submitted to the National Treasury;
3. submit to the National Treasury a draft budget by another date agreed to with the Minister of Finance; and
4. represent Parliament in any discussions with the Minister of Finance on any aspect of Parliament’s budget.

Annual appropriations

14. Money for administering Parliament for each financial year must be appropriated in the national annual budget referred to in section 27 (1) of the Public Finance Management Act.

2. Any revision of an appropriation in terms of subsection (1) must be made by a national adjustments budget referred to in section 30 of the Public Finance Management Act.

13. If an annual budget is not passed before the start of the financial year, funds may be withdrawn from the National Revenue Fund for the requirements of Parliament during that financial year as direct charges against the Fund until the budget is passed.

2. Funds withdrawn from the National Revenue Fund in terms of subsection (1) -

1. may be used only for services for which funds were appropriated in the previous annual budget or adjustments budget; and
2. may not –

1. during the first four months of that financial year, exceed 45 per cent of the total amount appropriated in the previous annual budget;
2. during each of the following months, exceed ten per cent of the total amount appropriated in the previous annual budget; and
3. in aggregate, exceed the total amount appropriated in the previous annual budget.

(3) The funds provided for in subsection (1) are not additional to funds appropriated for the relevant financial year, and any funds withdrawn in terms of that subsection must be regarded as forming part of the funds appropriated in the budget for that financial year.

17. Unauthorised expenditure incurred in administering Parliament does not become a charge against the National Revenue Fund, unless-

1. the expenditure is an overspending of a vote and Parliament approves an additional amount for that vote which covers the overspending;
2. the expenditure is unauthorised for another reason and Parliament authorises the expenditure as a direct charge against the National Revenue Fund.

1. Parliament must advise the National Treasury of any unauthorised expenditure that has been authorised in terms of subsection (1).
2. If Parliament authorises unauthorised expenditure but does not approve an additional amount covering the amount of the unauthorised expenditure, the unauthorised expenditure becomes a charge against the funds appropriated for Parliament in the next national annual budget.

17. The Accounting Officer may use a saving in the amount appropriated under a main division within Parliament’s vote towards for defraying excess expenditure under another main division within the vote, unless the Executive Authority directs otherwise.

2. The amount of a saving under a main division of Parliament’s vote that may be used in terms of subsection (1), may not exceed eight per cent of the amount appropriated under that main division.
3. This section does not authorise the use of a saving of an amount—

1. specifically and exclusively appropriated for a purpose mentioned under a main division within the vote;
2. appropriated for transfer to another institution;
3. appropriated for capital expenditure in order to defray current expenditure; or
4. that is a direct charge against the National Revenue Fund in order to supplement Parliament’s appropriated funds.

4. The Executive Authority may make regulations or issue instructions in terms of section 56 concerning the application of this section.

Roll-over of unspent funds

18. Funds appropriated for, but not spent in, a particular financial year may be rolled over to a subsequent year subject to –

1. the approval of the Executive Authority; and
2. reappropriation in the adjustments budget in terms of section 30 of the Public Finance Management Act.

(2) Any roll over must comply with the following conditions–

1. Savings in respect of funds that are a direct charge against the National Revenue Fund may not be rolled over;
2. Unspent funds on payments for capital assets may be rolled over only to finalise projects or asset acquisitions still in progress.
3. Savings on transfers and subsidies may not be rolled over for purposes other than originally appropriated.
4. Savings on remuneration of employees may not be rolled over.
5. A maximum of five per cent of Parliament’s payments for goods and services may be rolled over.

(3) The Executive Authority must submit information on the roll-over of unspent funds to the National Treasury on or before the last working day of April for inclusion in the appropriate national adjustments budget.

17. Funds that are a direct charge against the National Revenue Fund and that are unspent at the end of a financial year must be returned to the National Revenue Fund.
2. Appropriated funds that are unspent at the end of a financial year and are not rolled over to a subsequent financial year in accordance with section 19 must be returned to the National Revenue Fund.

 

CHAPTER 4

CASH MANAGEMENT AND INVESTMENT

Cash management and investment policy

The Executive Authority must issue an appropriate policy —

1. to ensure efficient and effective banking and cash management; and
2. for investing money not immediately required.

2. The Accounting Officer is responsible for establishing systems and procedures for the effective implementation of the policy prescribed in terms of subsection (1).

17. The Accounting Officer, with the approval of the Executive Authority, and in accordance with the policy referred to in section 21, must open and maintain–

1. a bank account into which all money received by Parliament must promptly be paid; and
2. such other bank accounts as are necessary for the effective and efficient management of Parliament’s funds.

2. Parliament may not open a bank account –
1. abroad;
2. with an institution not registered as a bank in terms of the Banks Act, 1990 (Act No. 94 of 1990); or
3. otherwise than in the name of Parliament.

3. A bank account opened in terms of this section does not form part of the National Revenue Fund.

17. The Accounting Officer —

1. must administer all of Parliament’s bank accounts;

is accountable to the Executive Authority for Parliament’s bank accounts; and

2. must enforce compliance with section 24.

Withdrawals from bank accounts

Only the Accounting Officer, or an official to whom that power has been delegated in terms of section 8, may withdraw money, or authorise the withdrawal of money, from any of Parliament’s bank accounts.

A delegation in terms of subsection (1) must be in accordance with the policy made in terms of section 21.

Money may be withdrawn from one of Parliament’s bank accounts only for -

1. defraying expenditure in accordance with Parliament’s approved budget or authorised for Parliament as a direct charge against the National Revenue Fund;
2. refunding money incorrectly paid into a bank account; or
3. cash management or investment purposes in accordance with the policy made in terms of section 21 .

Restrictions on borrowing, guarantees and other transactions

18. Parliament may not –

1. borrow money; or
2. issue a guarantee, indemnity or security, or
3. enter into any other similar transaction that binds or may bind it to any future financial commitment.

2. Neither the state nor Parliament is bound by a loan transaction, guarantee, indemnity, security or other transaction entered into or concluded in breach of sub- section (1).
3. Subsection (1) does not prevent Parliament from –

1. issuing or being bound by guarantees for loans in terms of a housing or motor vehicle scheme administered by Parliament for staff members;
2. entering into any lease agreement to obtain the use of property or equipment; or
3. using credit cards, fleet management cards or other credit facilities repayable within 30 days from the date of the statement.

26. The Accounting Officer must -

1. prepare cash-flow projections in respect of both revenue and expenditure for the financial year and submit these to the National Treasury by a date agreed with the Minister of Finance; and
2. when requesting the transfer of appropriated funds, submit requisitions to the National Treasury, in accordance with these cash flow estimates, at least four full working days before the end of the month preceding the month in which the funds are required.

The Accounting Officer is responsible for managing –

1. Parliament’s assets, including safeguarding and maintaining those assets; and
2. Parliament’s liabilities.

2. For the purposes of subsection (1), the Accounting Officer must ensure that–

1. Parliament maintains a management, accounting and information system that accounts for its assets and liabilities;
2. Parliament’s assets and liabilities are valued in accordance with generally recognised accounting practice; and
3. Parliament maintains a system of internal control of assets and liabilities, including an asset and liabilities register, as may be prescribed.

27. The Accounting Officer is responsible for managing the revenue of Parliament.

2. For the purposes of subsection (1), the Accounting Officer must ensure that –
1. Parliament has effective revenue collection systems;
2. all money received is deposited promptly in accordance with this Act into the bank account contemplated by section 22(1)(a);

Parliament maintains a management, accounting and information system which –

recognises revenue when it is earned; and
accounts for receipts of revenue;

Parliament maintains a system of internal control in respect of revenue; and

all revenue received by Parliament is reconciled at least on a weekly basis.

27. The Accounting Officer must take effective and appropriate steps to collect all monies due to Parliament including –

1. maintaining proper accounts and records of all debtors, including amounts received in part payment; and
2. if appropriate, instituting legal proceedings.

2. An Accounting Officer may settle or write off a debt only in accordance with a policy determined by the Executive Authority.
3. Interest must be charged on any debt owed to Parliament in accordance with a policy issued by the Executive Authority

27. The Accounting Officer is responsible for managing the expenditure of Parliament.

2. For the purpose of subsection (1), the Accounting Officer must ensure that –

1. Parliament maintains an effective system of expenditure control, which includes procedures for the approval and authorisation of the withdrawal and payment of funds;
2. Parliament maintains a management, accounting and information system which –

1. recognises expenditure when it is incurred;
2. accounts for creditors of Parliament; and
3. accounts for payments made by Parliament;

3. Parliament maintains a system of internal control in respect of creditors and payments;
4. Parliament makes payment –

1. directly to the person to whom it is due unless agreed otherwise or for good reason; and
2. either electronically or by way of non-transferable cheques, provided that cash payments and payments by way of cash cheques may be made for exceptional reasons only, and only up to a limit determined by the Executive Authority;

5. all amounts owed by Parliament are paid within 30 days of receiving the relevant invoice or statement, unless agreed otherwise; and
6. all financial accounts of Parliament are closed at the end of each month and reconciled with its records.

31. The Accounting Officer is responsible for implementing Parliament’s budget and must ensure that –

1. spending is in accordance with the approved budget; and
2. revenue and expenditure are properly monitored.

32. Any directive by the Executive Authority to the Accounting Officer that has financial implications must be in writing.
2. If implementation of a directive is likely to result in unauthorised expenditure, the Accounting Officer will be responsible for any resulting unauthorised expenditure, unless the Accounting Officer has informed the Executive Authority in writing of the likelihood of that unauthorised expenditure.
3. If the Executive Authority decides to proceed with the implementation of such a directive, the decision and the reasons for it, must be in writing, and the Accounting Officer must promptly file a copy of this document with the Auditor-General.

Impending shortfalls and overspending

33. The Accounting Officer must –

1. report in writing to the Executive Authority –

1. any impending shortfalls in budgeted revenue and overspending of a main division within Parliament’s vote; and
2. any steps taken to prevent or rectify such shortfalls or overspending; and

2. comply with any remedial measures imposed by the Executive Authority to prevent or rectify such shortfalls or overspending.

34. This Chapter applies to –

1. the acquisition by Parliament of goods and services; and
2. the disposal and letting of Parliament’s assets, including the disposal of goods no longer required.

35. The Executive Authority must issue a supply chain management policy which -

1. is fair, equitable, transparent, competitive and cost effective;
2. promotes high ethical standards and prohibits fraud, corruption, favouritism and unfair and irregular practices;
3. requires disclosure of and deals appropriately with conflicts of interests;
4. establishes appropriate supply chain management processes and procedures, including -
1. demand management;
2. acquisition management;
3. logistics management;
4. disposal management;
5. risk management; and
6. regular assessment of supply chain performance; and
5. complies with other applicable legislation; and
6. is consistent with the supply chain management policy issued in terms of the Public Finance Management Act.

36. The Accounting Officer must –

1. ensure that the supply chain management policy is implemented;
2. establish capacity in Parliament to implement the policy;
3. ensure that contracts concluded through the supply chain management policy of Parliament are properly enforced;
4. monitor the performance of contractors; and
5. report to the Executive Authority on the implementation of the policy annually or as prescribed.

Members of Parliament may participate in evaluating the content of tenders and bids that directly affect their parliamentary work, but not in evaluating –

the costs of such tenders and bids; or
1. tenders and bids in respect of which they may have a conflict of interests.

38. No person may-

1. interfere with the supply chain management system of Parliament; or
2. amend or tamper with any tender or bid after its submission.

38. Parliament must have an audit committee appointed by the Executive Authority .
2. The committee must be constituted in a manner that ensures its independence and consist of at least six persons with appropriate experience.
3. More than half of the members of the committee must be individuals who are neither in the employ of Parliament nor members of Parliament.
4. The Executive Authority must appoint one of the members contemplated by subsection (3) as the chairperson of the committee.
5. The terms of appointment and remuneration of members of the audit committee contemplated by subsection (3) must be consistent with the requirements for audit committees prescribed under the Public Finance Management Act.

Functions of audit of committee

39. The audit committee must –
1. establish an audit charter to –
1. guide its audit approach and that of the internal audit unit;
2. set out its operating procedures; and
3. determine the rules that govern its relationship with the internal audit unit and the Accounting Officer;
2. carry out such investigations into Parliament’s financial and risk management as it considers necessary or are requested by the Accounting Officer; and
3. report to and advise the Accounting Officer on matters relating to the financial and risk management of Parliament;
4. in the annual report of Parliament comment on –
1. the effectiveness of internal control;
2. the quality of financial management and reports compiled by the Accounting Officer in terms of this Act; and
3. the quality of the annual financial statements; and
5. communicate any concerns it deems necessary to the Executive Authority and the Auditor-General.

2. In performing its functions, an audit committee –
1. has access to the financial records and other relevant information of Parliament;
2. must liase with –
1. the internal audit unit of Parliament; and
2. the person designated by the Auditor-General to audit the financial statements of Parliament; and
3. must meet as often as required to perform its functions, but at least four times a year.

If the audit committee becomes aware of information implicating the Accounting Officer in fraud, corruption or gross negligence, it must report this promptly to the Executive Authority.

41. Parliament must have an internal audit unit established by the Accounting Officer which must conduct internal audits in accordance with standards set out by the Institute of Internal Auditors.
2. The unit must prepare for the approval of the audit committee -

1. operating procedures to guide its relationship with the administration of Parliament;
2. a three-year risk-based audit plan; and
3. an internal audit program for each financial year setting out the proposed scope of each audit.

2. The unit must report quarterly to the audit committee on its performance against the annual audit plan.
3. The unit must be independent and have access to the financial records and other relevant information of Parliament.

41. Within fifteen days after the end of each month, the Accounting Officer must submit a financial statement to the Executive Authority and the National Treasury, in a format determined by the Executive Authority, reflecting the state of Parliament’s finances for that month and for the financial year to date and specifying –

1. actual revenue by revenue source;
2. actual expenditure by main division;
3. actual capital expenditure by main division; and
4. when necessary, an explanation of –

1. any material variances from Parliament’s projected revenue by source, and from Parliament’s expenditure projections by main division; and
2. any remedial or corrective steps taken or to be taken to ensure that projected revenue and expenditure remain within Parliament’s approved budget.

2. The statement must include a projection of revenue and expenditure for the remainder of the financial year, and any revisions from initial projections.
3. The amounts reflected in the statement must in each case be compared with the corresponding amounts set out in the projected cash-flows and in Parliament’s budget.

44. Within 30 days of the end of each quarter, the Accounting Officer must report to the Executive Authority on Parliament’s performance in implementing the strategic plan in that quarter.

44. Before 31 October of each year, the Accounting Officer must submit to the Executive Authority a report that assesses the performance of Parliament’s administration during the first half of the financial year, taking into account –
1. the monthly statements referred to in section 43 for the first half of the financial year;
2. the past year’s annual report, and progress on resolving problems identified in the report; and
3. performance in implementing the strategic plan.

2. In the report the Accounting Officer must –
1. recommend whether an adjustments budget may be necessary; and
2. revise projections for revenue and expenditure to the extent that this may be necessary.

45. The Accounting Officer must for each financial year prepare an annual report.

2. The purpose of an annual report is to –

1. provide a record of the activities of Parliament’s administration during the financial year to which the report relates;
2. provide a report on performance of Parliament’s administration; and
3. promote accountability for decisions made during the year by Parliament’s administration.

3. The annual report must be based on the strategic plan and must contain –

the annual financial statements of Parliament for the relevant financial year as submitted to the Auditor-General;

any explanations that may be necessary to clarify the financial statements;

the Auditor-General’s audit report on those financial statements;

1. an assessment by the Accounting Officer of the performance of Parliament during that financial year against the objectives and outcomes identified in Parliament's strategic plan;
2. particulars of any corrective action taken or to be taken in response to issues raised in the audit report referred to in paragraph (b);
3. the audit committee’s report; and
4. any other prescribed information.

Preparation of financial statements

46. For each financial year, the Accounting Officer must prepare annual financial statements in accordance with generally recognised accounting practice and in the format prescribed in terms of the Public Finance Management Act.

2. The notes to the annual financial statements must –

1. include particulars of the remuneration of officials of Parliament, whether financial or in kind;
2. disclose in respect of each bank account held by Parliament during the relevant financial year –

1. the name of the bank where the account is or was held, and the type of account; and
2. year opening and year end balances in each of these bank accounts; and

3. provide a summary of all investments of Parliament as at the end of the financial year; and
4. provide particulars of—

1. any material losses and any material unauthorised, irregular or fruitless and wasteful expenditures that occurred during the financial year and whether these are recoverable;
2. any criminal or disciplinary steps instituted as a result of such losses or unauthorised, irregular or fruitless and wasteful expenditures; and
3. any material losses written off.

48. Within two months after the end of the financial year, the Accounting Officer must submit the annual financial statements –

1. to the Auditor-General for auditing; and
2. to the National Treasury for inclusion in the consolidated financial statements.

49. The Auditor-General must –
1. audit the financial statements submitted in terms of subsection (1); and
2. submit an audit report on those statements to the Executive Authority within two months of receiving the statements.

2. If the Auditor-General is unable to complete an audit within two months of receiving the financial statements, the Auditor-General must promptly submit a report outlining the reasons for the delay to the Executive Authority. The Executive Authority must promptly table the report in Parliament.
3. Once the Auditor-General has submitted an audit report to the Executive Authority, no person other than the Auditor-General may alter the report or the annual financial statements to which the report relates.

50. The Accounting Officer must submit Parliament’s annual report to the Executive Authority within five months of the end of the financial year concerned.

51. The Executive Authority must table the annual report in Parliament within five working days of receiving it.

2. The annual report, including the audited financial statements and audit report, must be made public.
3. The annual report of Parliament must be referred to a joint committee of Parliament for consideration. The members of the Executive Authority may not participate as members of the committee when it considers the report.

The Accounting Officer must –

promptly address any issues raised by the Auditor-General in an audit report; and

advise the Executive Authority of the steps taken to address the issues.

53. If the Accounting Officer does not submit the annual financial statements to the Auditor-General in accordance with section 48(a) –

1. the Accounting Officer must promptly submit a written explanation setting out the reasons for the failure to –

1. the Auditor-General; and
2. the Executive Authority; and
2. the Executive Authority –

1. must report to Parliament concerning the failure;
2. must take appropriate steps to ensure that the financial statements are submitted for auditing; and
3. may order that disciplinary steps be taken against the Accounting Officer or other person responsible for the failure; and
3. the Auditor-General may issue a special report on such failure to Parliament which must be made public.

2. If the Executive Authority does not table the annual report in Parliament in accordance with section 51 (1)—
1. the Executive Authority –
1. must table a report on the failure in Parliament;
2. must take appropriate steps to ensure that the annual report is tabled in Parliament; and
3. may order that disciplinary steps be taken against the Accounting Officer or other person responsible for the failure; and
2. the Auditor-General –
1. must submit the audited financial statements and audit report to Parliament for tabling; and
2. may issue a special report on the delay.

54. The Accounting Officer must report particulars of any unauthorised, irregular or fruitless and wasteful expenditure to the Executive Authority immediately on discovery.

Other information

55. The Accounting Officer must comply with any request by the Executive Authority, the National Treasury or the Auditor-General for information, returns, documents, explanations and motivations.

56. The Executive Authority may make regulations or issue instructions not inconsistent with this Act concerning—

1. any matter in respect of which this Act authorises regulations or instructions;
2. the handling of, and control over, the assets of Parliament;
3. the improvement and maintenance of the assets of Parliament;
4. the alienation, letting or other disposal of the assets of Parliament;
5. an appropriate supply chain management system for Parliament which complies with Chapter 6;
6. the financial management of the provision of support services and facilities to –

1. political parties represented in Parliament;
2. members of Parliament; and
3. officials of Parliament;

7. the rendering of free services by Parliament’s administration;
8. the determination of any scales of fees, other charges or rates relating to services provided by Parliament’s administration;
9. the writing off of, or settling of claims in respect of, losses of money or other assets of Parliament or amounts owed to Parliament;
10. liability for losses and damages, and procedures for recovery, including the recovery of fruitless and wasteful, unauthorised and irregular expenditure;
11. the cancellation or variation of contracts to the detriment of Parliament;
12. the settlement of claims by or against Parliament;
13. the waiver of claims by Parliament;
14. the remission of money due to Parliament;
15. gifts or donations to officials of Parliament;
16. vouchers or other proofs of receipts or payments, which are defective or have been lost or damaged; or
17. any other matter concerning the financial management of Parliament that may facilitate the application of this Act.

2. Regulations in terms of subsection (1) may prescribe that the prior approval of the Executive Authority must be obtained for particular actions.

57. The Accounting Officer must publish all regulations and policies issued by the Executive Authority.

58. The Accounting Officer commits an act of financial misconduct if the Accounting Officer deliberately or negligently—

1. contravenes a provision of this Act;
2. fails to comply with a duty imposed by a provision of this Act on the Accounting Officer;
3. makes, or permits or instructs another official of Parliament to make, an unauthorised, irregular or fruitless and wasteful expenditure; or

provides incorrect or misleading information in any document which must be submitted to the Executive Authority, the National Treasury or the Auditor-General in terms of this Act.

The Executive Authority must–

investigate promptly any allegation of financial misconduct against the Accounting Officer, unless it is obviously unfounded; and
if the investigation warrants such a step, institute disciplinary proceedings promptly and in accordance with any applicable systems and procedures.

59. An official of Parliament to whom a power or duty was delegated in terms of section 8, commits an act of financial misconduct if that official deliberately or negligently –
1. fails to carry out the delegated power or duty;
2. contravenes or fails to comply with a condition of the delegated power or duty;
3. makes, or permits or instructs another official of Parliament to make, an unauthorised, irregular or fruitless and wasteful expenditure; or
4. provides incorrect or misleading information in any document submitted to the Accounting Officer.

The Accounting Officer must –

investigate any allegation of financial misconduct against an official unless it is obviously unfounded; and
if the investigation warrants such a step, institute disciplinary proceedings within 30 days in accordance with any applicable systems and procedures.

It is an offence for the Accounting Officer to -

deliberately or in a grossly negligent way –

contravene or fail to comply with a provision of section 5, 27(2)(a) or (c), 28(2)(a) or (c) or 30 (2) (a), (b), (c), (d) or (f);

fail to take all reasonable steps to prevent unauthorised, irregular or fruitless and wasteful expenditure; or

contravene section 10 (3) (b);

fail to take all reasonable steps to prevent corrupt practices –

in the management of Parliament’s assets or receipt of money; or

in the implementation of Parliament’s supply chain management system;

1. deliberately mislead or withhold information from the Executive Authority or Auditor-General on any bank accounts of Parliament or on money received or spent by Parliament; or

deliberately provide false or misleading information in any document which in terms of a requirement of this Act must be submitted to the Executive Authority or Auditor-General.

2. It is an offence for any official –
1. to whom a power or duty is delegated in terms of section 8, deliberately or in a grossly negligent way to contravene or fail to comply with the delegation or a condition of the delegation; or
2. to contravene section 10(3)(b).

3. It is an offence for any person to contravene section 38 or 49 (3).

61. A person convicted of an offence in terms of section 60 is liable to imprisonment for a period not exceeding five years or to an appropriate fine determined in terms of applicable legislation or both.

62. No member of the Executive Authority, the Accounting Officer or any other official exercising a power or performing a function in terms of this Act, is liable in respect of any loss or damage resulting from the exercise of that power or the performance of that function in good faith.

2. Without limiting liability in terms of the common law or other legislation, Parliament may recover from the Accounting Officer or other official, any loss or damage suffered by it because of the deliberate or negligent unlawful actions of that Accounting Officer or other official when performing a function in terms of this Act.

62. This Act repeals –

1. sections 31 and 39 of the Powers and Privileges of Parliament Act, 1963 (Act No. 91 of 1963);
2. in the Public Finance Management Act –
1. the words "Parliament and" in section 3(1)(d); and
2. subparagraph (a) of section 3(2).

64. This Act is called the Financial Administration of Parliament Act, 2005, and takes effect on 1 April 2006.

1. identify the individual or body as the executive authority responsible for controlling the revenue, expenditure, assets and liabilities of the legislature;
2. provide for the accountability of that executive authority to the legislature;
3. require budgetary and financial planning processes to be co-ordinated with the processes of the relevant executive organs of state;
4. provide for appropriate measures to ensure that the legislature has adequate financial management capacity;
5. require the administration of the legislature to put in place a supply chain management system which is fair, equitable, transparent, competitive, cost-effective and which is consistent with the system prescribed in terms of the Public Finance Management Act;
6. require the preparation of regular financial statements in accordance with the norms and standards prescribed in the Public Finance Management Act;
7. require the internal and external auditing of financial statements; and
8. require legislature to comply with the accounting standards issued by the Minister of Finance, on the advice of the Accounting Standards Board.