financial & fiscal commission annual report 2002-2003 · hosted by the nelson mandela school of...

73ANNUAL REPORT 2002-2003 — FINANCIAL AND FISCAL COMMISSION

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74 FINANCIAL AND FISCAL COMMISSION — ANNUAL REPORT 2002-2003

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LIST OF CONSULTATIONS AND PRESENTATIONS BY THE FFC AND WORKSHOPS/PUBLIC HEARINGS ATTENDED

19 April 2002 FFC submitted its comment on the Local GovernmentLaws Amendment Bill to the Department of Provincialand Local Government. The comment was alsosubmitted to Mr. Yunus Carrim, Chairperson of theP o rtfolio Committee on Provincial and LocalGovernment, in lieu of hearings on the Bill held byParliament, Cape Town.

30 April 2002 FFC presented its Annual Submission on the Divisionof Revenue 2003-2004 to Parliamentarians andofficials of the Department of Provincial and LocalGovernment, National Treasury and members of themedia. Cape Town.

2, 7, 8 May 2002 FFC attended the hearings on the Municipal FinanceBill, convened by the Portfolio Committee on Financeand the Select Committee on Finance (NCOP), Cape Town.

13 May 2002 FFC attended the hearings on the Budget Vote:National Tre a s u ry, convened by the Port f o l i oCommittee on Finance and the Select Committee onFinance (NCOP), Cape Town.

15 May 2002 FFC presented its budget to the Portfolio Committeeon Finance and the Select Committee on Finance(NCOP), Cape Town.

17 May 2002 FFC attended a meeting called by the Department of Provincial and Local Government on theimplementation Plan of Action of the Presidential Co-ordinating Committee’s resolutions, Pretoria.

20, 21 May 2002 FFC gave a presentation on its Annual Submission2003-2004 to the Select Committee on Finance(NCOP), Cape Town.

21 May 2002 FFC attended the hearings on the Municipal FinanceManagement Bill, convened by the Port f o l i oCommittee on Finance and the Select Committee onFinance (NCOP), Cape Town.

6 June 2002 FFC gave a presentation on its Submission on theDivision of Revenue 2003/2004 to the FinanceStanding Committee of the Eastern Cape ProvincialLegislature, Bisho.



LIST OF CONSULTATIONS AND PRESENTAT I O NS BY THE FFC AND WORKSHOPS/PUBLIC HEARINGS ATTENDED (contd.)

6 June 2002 FFC gave a presentation on its Submission on theDivision of Revenue 2003/2004 to the StandingCommittee on Finance of the Gauteng ProvincialGovernment, Johannesburg.

11 June 2002 FFC attended the hearing on the Status Report: EarlyChildhood Development, convened by the SelectCommittee on Finance (NCOP), Cape Town.

13 June 2002 FFC gave a presentation on its Submission on theDivision of Revenue 2003/2004 to the FinanceWorking Group of the South African LocalGovernment Association (SALGA), Pretoria.

14 June 2002 FFC attended the hearings on the Taxation LawsAmendment Bill, convened by the Select Committeeon Finance (NCOP), Cape Town.

18, 19, 21 June 2002 FFC attended the hearings on the Municipal FinanceManagement Bill, convened by the Port f o l i oCommittee on Finance and the Select Committee onFinance (NCOP), Cape Town.

20 June 2002 FFC gave a presentation on its Preliminary Commentson the Report of the Committee of Inquiry into aComprehensive Social Security System for SouthAfrica, Cape Town.

21 June 2002 FFC gave a presentation on its Submission on theDivision of Revenue 2003/2004 to the PortfolioCommittee on Finance, Economic Affairs and Tourismof the Limpopo Provincial Government, Polokwane.

25 June 2002 FFC attended the hearings on the Recent EconomicDevelopments and Statement of the Monetary Policy,convened by the Portfolio Committee on Finance andthe Select Committee on Finance (NCOP), CapeTown.

25 June 2002 FFC gave a presentation on its Submission on theDivision of Revenue 2003/2004 to the PortfolioCommittee for Finance and Economic Affairs of theMpumalanga Provincial Government, Nelspruit.

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27 June 2002 FFC gave a presentation on its Submission on theDivision of Revenue 2003/2004 to the StandingCommittee on Finance and Economic Development ofthe We s t e rn Cape Provincial Government, Cape To w n .

3 July 2002 FFC met with a delegation of government healthofficials from Nigeria who were on tour of variousgovernment institutions in South Africa. The tour washosted by the Nelson Mandela School of Medicine,University of Natal, Durban.

16-17 July 2002 FFC gave a presentation on its Submission on theDivision of Revenue 2003/2004 to the FinanceCommittee of the Free State Provincial Government,Bloemfontein.

29 July 2002 FFC attended a meeting of the Powers and FunctionCommittee convened by the Demarcation Board.

29-31 July 2002 & FFC attended the hearings on the Municipal Finance1 August 2002 Management Bill, convened by the part i c i p a t i n g

Portfolio Committees on Finance, on Provincial andLocal Government, and the Select Committee onFinance (NCOP), Cape Town. FFC also made verbalinputs during the hearings.

8 August 2002 FFC submitted its comment on the Division of Powers and Functions between Category B and Cmunicipalities referred to in the DPLG’s Report: Reviewof Powers and Functions, 31 January 2002. Thecomment was submitted to F S Mufamadi, Minister forProvincial and Local Government.

13 & 20 August 2002 FFC gave a presentation on its Submission on theDisaster Management Bill to the Portfolio Committeeon Provincial and Local Government, Cape Town.

19 August 2002 FFC submitted its pre l i m i n a ry comments on the Local Government: Property Rates Bill to Minister FS Mufamadi, Department of Provincial and LocalGovernment.




19 August 2002 FFC submitted its suggestions for amendments to the Disaster Management Bill B21-2002 to Mr. Yunus Carrim, the Chairperson of the PortfolioCommittee for Provincial and Local Government.

21-24 August 2002 FFC attended the Budget Council Lekgotla, Kleinmond.

29 August 2002 FFC submitted its comment on the Local GovernmentLaws Amendment Bill: Proposed amendment to theCape Valuation Ordinance, to the Department ofProvincial and Local Government, Pretoria.

4 -10 September 2002 FFC monitored deliberations on the MunicipalFinance Management Bill, Parliament, Cape Town.

5, 6, 16 Sept 2002 FFC monitored deliberations on the ConstitutionalAmendment Relating to local government, asdiscussed by the jointly by the Committees onFinance, Justice and Provincial and LocalGovernment, Parliament, Cape Town.

10 September 2002 FFC gave a presentation on the ComprehensiveSocial Security Report to the Select Committee onSocial Services, Parliament, Cape Town.

11 September 2002 FFC briefed Parliament’s Portfolio Committee onWaters Affairs and Forestry on the utilization ofequitable share for free basic water, Cape Town.

17 September 2002 Monitoring of deliberations by the Select Committeeon Finance (NCOP) on the adoption of theCommittee’s Report on the FFC’s Annual Submissionon the Division of Revenue 2003-2004, Parliament,Cape Town.

20 September 2002 FFC attended the discussion on inflation targeting,convened by the Portfolio Committee on Finance,Parliament, Cape Town.

2 October 2002 FFC attended the Division of Revenue Workshop heldby National Treasury, Pretoria.

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9 October 2002 FFC gave a presentation to a delegation of Nigeriano fficials hosted by the Gauteng Provincial Govern m e n tand DFID, Johannesburg, Gauteng.

10 October 2002 FFC gave a presentation on its Submission on theDivision of Revenue 2003/2004 to the FinanceStanding Committee of the North West Pro v i n c i a lL e g i s l a t u re, Mmabatho.

15 October 2002 FFC submitted its comment and attended the hearingson the Local Government Laws Amendment Bill.

15-18 & 18 Oct 2002 FFC attended the hearings on the Municipal Finance& 5, 8, 12-14, 19-20 Management Bill, convened by the Portfolio CommitteeNovember 2002 on Finance, Parliament, Cape To w n .

29 October 2002 FFC attended DPLG’s presentation on local govern m e n tissues to the Portfolio Committee on Provincial andLocal Government, Cape To w n .

30 October 2002 FFC monitored hearings on the Medium Te rm Budget 4 -7 November 2002 Policy Statement, Parliament, Cape To w n .

7 November 2002 FFC gave a presentation on its comment on the MediumTe rm Budget Policy Statement to the Joint BudgetCommittee on Finance, Parliament, Cape To w n .

November 2002 Deputy Chairperson of the Commission, Jaya Josie,gave an input on interg o v e rnmental Fiscal Relationsand Local Government to the SALGA NationalC o n f e rence, Gallagher Estates, Midrand.

13 November 2002 FFC attended a presentation by SALGA on water issuesto the Portfolio Committee on Provincial and LocalG o v e rnment, Cape To w n .

25 November 2002 FFC submitted its comment on the White Paper onMunicipal Service Partnerships to the Dire c t o r- G e n e r a lof the Department of Provincial and Local Govern m e n t .




3 March 2003 The FFC submitted and presented its comment on theDoRB 2004 to the Parliament’s Joint BudgetCommittee, Cape Town.

6 March 2003 FFC gave a presentation on the Division of Revenueat hearings convened by Parliament’s SelectCommittee of Finance (NCOP), Cape Town.

10-13 March 2003 The FFC submitted and presented its comment on theDivision of Revenue to the Parliament’s SelectCommittee of Finance (NCOP) on 10 March 2003and attended the hearings on 11-13 March 2003.

Participation in other key meetings throughout the year:

Budget Council MeetingsBudget LekgotlaBudget ForumTechnical Committee on Finance (TCF)MINMECs and 4x4 & 10X10 Meetings in Health,Education, Welfare and Local Government.

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SUMMARY OF PERSONNEL COSTS AND RELATED INFORMATION

The following statistics are provided in terms of the Guide for the Preparationof Annual Reports published by the National Treasury for the year ended31 March 2003. These statistics are also provided for the Oversight Report asrequired by Part III J3 of the Public Service Regulations, 2001.

Tables 1.1 and 1.2 – Personnel costs by programme and salary level 2002/03

For the purposes of this report the Salary Level column in the attached tableshas been defined as follows:

SALARY LEVEL:

Executive Management:Executive/Management positions in the secretariat of the organization whichfor the reporting period wereChair and Deputy Chair of the Financial and Fiscal Commission Executive Manager Commission Co-ordinationAdministration & Network Manager Manager Parliamentary OfficeManager Fiscal Policy AnalysisManager Budget AnalysisFinancial Officer

Researchers:Staff of the secretariat directly involved in the research functions for theCommission:Research CoordinatorsData and Information CoordinatorResearchers

S a l a ryl e v e l s

To t a le x p e n d i t u re

( R )

P e r s o n n e le x p e n d i t u re

( R )

N o np e r s o n n e l

e x p e n d i t u re( R )

A d m i ne x p e n d i t u re

( R )

P ro f e s s i o n a land special

s e rvice ( R )

P e r s o n n e lcosts as % of

t o t a le x p e n d i t u re

Av e r a g ep e r s o n n e l

cost peremployee (R)

Financial and FiscalC o m m i s s i o n

Executive & 2,229,806 1,645,590 320,000 14% 411,398Management

Researchers 3,577,296 2,118,572 1,209,543 19% 302,653

ResearchSupport 576,784 1,023,345 500,000 9% 204,669

Admin/FinSupport 4,013,305 943,930 2,000,000 8% 235,983

ProgrammeTotal 11,397,191 5,731,437 5,665,754 3,097,934 558,626 50% 1,547,7032



SUMMARY OF PERSONNEL COSTS AND RELATED INFORMATION (contd.)

Research Support:Staff of the secretariat providing Support roles to the Research andRecommendations Programme:Personal AssistantProjects AdminsistratorAdministration Secretary: Cape Town OfficeLibrarian/Information Specialist

Administration/Finance Support:Staff of the secretariat providing support roles to the Admin and Financefunctions:Accounts ClerkReceptionistGeneral AssistantAdministration Assistant

The statistical information in these tables is relevant for the Chair and DeputyChair (who were full-time Commissioners for the reporting period), allpermanent staff of the secretariat, interns and temporary support staffemployed for the period.

The statistical data does not include (unless specifically stated in the table) costsand related information for other Commissioners, contracted service providers,consultants or technical advisors to the research programme.

Tables 1.3 and 1.4 – Overtime, Allowances, and Benefits by programme andsalary level, 2002/03

Amount(R)

Amount(R)

Amount(R)

% of Personnelcosts

% of Personnelcosts

% of Personnelcosts

Allowances BenefitsS a l a ryl e v e l s Overtime


ExecutiveManagement 0 153,739.20 18% 129,036.00 15%

Researchers 0 50,913.57 4% 165,768.00 12%

ResearchSupport 0 2,595.00 0.5% 177,258.00 26%

Admin/FinSupport 0 0,00 0% 91,524.00 17%

ProgrammeTotal 0 248,332.08 5% 801,630.00 16%

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Table 2.1 – Approved establishment by programme

The approved establishment is as per the FFC MTEF Budget.

Table 2.2 and 2.3 Employment and vacancies by programme, salary band,31 March 2003

Table 2.4 Employment and vacancies by critical occupation

Due to the small number of staff and the nature of the work undertaken by theFFC, it was not appropriate to identify Critical Occupations. The statisticaltables, therefore, do not include reports by Critical Occupation.

Tables 3.1 to 3.4 Job Evaluation, Grading, profile of employees accordingto grade, 1 April 2002 to 31 March 2003

As part of the FFC's HR Strategy and Employment Equity Plan for the 2002/03period, it was decided to implement a formal Job Evaluation system. Fromprevious experience it was found that it is not adequate to benchmark FFC jobpositions entirely against Private Sector Remuneration/Benefit surveys. Manyof the FFC staff have prior experience in the Public Sector and regularly makeinformal job level and package references to the grades and pay scales usedin the Public Sector.

1 April 2002 31 March 2003 31 March 2004 31 March 2005


Approved establishment Medium-term establishment estimatedFinancial and FiscalC o m m i s s i o n

Total 22 23 24


Establishment Number of employees Vacancy rateAdditional to the

establishment


Executive &Management 8 8 0% 0

Researchers 7 5 28.57% 0

ResearchSupport 4 3 25.00% 0

Admin/FinSupport 4 4 0% 0

ProgrammeTotal 23 20 13.04% 0




With the assistance of DPSA, the FFC undertook a process to evaluate and re-grade all jobs. The process was completed in March 2002 and consultationwith all staff on the new job, grades was instituted. The new system willi n t roduce much needed consistency and comparability for the FFC’sremuneration structure.

Table 4.1 – Appointments, promotions, and terminations, 1 April 2002 to31 March 2003

Appointments and transfers Promotions Terminations and transfersEmployees, 1 April 2001

M a l e 3 1

F e m a l e 1 0 1

AFRICAN

M a l e

F e m a l e

ASIAN

M a l e

F e m a l e

COLOURED

M a l e

F e m a l e 1

WHITE

Employees with d i s a b i l i t y

Total for FFC 4 0 3

WHITE

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Table 4.2 Annual turnover rates by salary bands

The turnover rate was calculated by dividing the number of terminations (3) bythe average staff compliment for the reporting period (21).

Table 4.3 – Annual turnover rates by critical occupation

See notes to Table 2.4

Table 4.4 – Reasons why staff are leaving the FFC


Appointments and transfers Terminations and transfers Turnover rateS a l a ry bands

Executive &Management 0 0 0.00%

Researchers 4 2 40%

ResearchSupport 0 0 0.00%

Admin/FinSupport 0 1 25%

Total 4 3 14.28%

Appointments and transfers NumberTe rnination type

Death 0

Resignation 3

Expiry of contract 0

Dismissal – organizational 0changers

Dismissal – misconduct 0

Dismissal – insufficiency 0

Discharge due to ill health 0

Retirement 0

Other 0

Total 3




Table 5.1 to 5.3 – Affirmative Action, employees below SMS, SMS, targetgroup, 2002/03

In compliance with the reporting requirements of the Department of Labour, anEmployment Equity Progress Report (EEA2 - Section G) was submitted on01 October 2002. The FFC reported progress in the area of Affirmative ActionMeasures. These included the following:

• Implementation of a Corporate Strategic Plan;• Enhancement of Recruitment and Selection Pro c e d u re s ;• O rganisational Structuring and Efficiency exerc i s e ;• Implementation of an extensive Training and Development Programme -

2 0 0 1 / 0 2 ;• Continuation and enhancement of the Perf o rmance Management system;• Alignment of HR Policies and Pro c e d u res with legislative re q u i re m e n t s ;• Implementation of a Job Classification and Grading System.

With re g a rd to Numerical Ta rgets, the FFC re p o rted that no staff turnover in theManagement Category for the 2002/03 period had prevented realisation oft a rgets for this category.

In the Professional Category, focus on the appointment of female re s o u rc eremains a goal and will be a key objective in the forthcoming appointment ofadditional Research staff. The next Employment Equity Pro g ress Report is due onthe first working day of October 2004.

Table 6.1 – Performance Rewards by race, gender, and disability, 1 April2002 to 31 March 2003

Beneficiary profileNumber of

beneficiariesNumber of employees

% of total within group

Cost(R)

Per capita cost

Cost

M a l e 3 7 4 2 . 8 6 % 5 4 . 6 5 3 . 6 1 7 8 0 7 . 6 6

F e m a l e 3 5 6 0 % 2 2 , 5 7 2 . 8 4 5 , 6 4 3 . 2 1

AFRICAN

M a l e 1 1 1 00% 2 3 , 6 2 3 . 6 9 2 3 , 6 2 3 . 6 9

F e m a l e 4 4 1 0 0 % 7 0 , 5 3 8 . 6 6 1 7 . 6 3 4 . 6 7

M a l e

F e m a l e 1 2 50% 7 , 4 9 7 . 9 6 3 , 7 4 8 . 9 8

M a l e 1 2 50% 2 5 , 7 0 6 . 4 5 1 2 , 8 5 3 . 2 3

F e m a l e 0 0

ASIAN

COLOURED

WHITE

Employees with d i s a b i l i t y 0

To t a l 1 3 2 1 6 1 . 9 0 % 2 0 4 , 5 9 3 . 2 1 9 , 7 4 2 . 5 3

N o t e : Fixed Te rm Contracts staff are not eligible for the FFC Perf o rmance Bonus

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Table 6.2 – Performance Rewards by salary level 1 April 2002 to 31 March2003

Table 6.3 – Performance Rewards by critical occupations, 1 April 2002 to31 March 2003

See notes to Table 2.4

Table 7.1 – Foreign Workers, 1 April 2002 to 31 March 2003

Beneficiary profileSalary levelsNumber of


% of total within group

Cost(R)

Per capita cost

Cost

Executive &M a n a g e m e n t 6 8 7 5 % 1 3 5 , 2 9 6 . 6 6 1 6 , 9 1 2 . 0 8

R e s e a rc h e r s 1 5 2 0 % 1 6 , 7 2 0 . 7 8 3 , 3 4 4 . 1 6

R e s e a rch support 4 4 1 00% 3 8 , 8 8 2 . 3 1 9 , 7 2 0 . 5 8 7Admin/Fin s u p p o rt 2 4 50% 1 3 , 6 9 3 . 4 6 3 , 4 2 3 . 3 7

To t a l 1 3 2 1 6 1 . 9 0 % 2 0 4 , 5 9 3 . 2 1 9 , 7 4 2 . 5 3

1 April 2002 31 March 2003 ChangeBy grade (Salaryband/levels)

Number Number Number% of total % of total % change

Executive &M a n a g e m e n t 0 0 0 0 0 0

R e s e a rc h e r s 0 0 0 0 0 0

R e s e a rch support 0 0 0 0 0 0

Admin/Fin s u p p o rt 0 0 0 0 0 0

To t a l 0 0 0 0 0 0

Table 8.1 – Sick Leave, 1 April 2002 to 31 March 2003

Total days Percentcertification

Number ofemployees

using sick leave

% of totalemployees

using sick leave

Average peremployee

Estimated cost(R)

Grade (Salaryband/level)

Executive &M a n a g e m e n t 2 7 1 2 . 6 7 % 7 3 5 % 3 . 8 6 4 1 4 5 . 6 5

R e s e a rc h e r s 5 1 0 0 % 5 2 5 % 1 . 0 0 2 7 9 . 7 6

R e s e a rch support 1 9 3 3 . 5 5 % 4 2 0 % 4 . 7 5 5 6 1 . 5 3

Admin/Fin s u p p o rt 2 5 0 % 4 2 0 % 0 . 5 1 9 . 5 7

To t a l 5 3 2 0 1 0 0 % 2 . 6 5 5 0 0 6 . 5 1




Table 8.2 – Disability leave (temporary and permanent), 1 April 2002 to31 March 2003

Total days taken

Percentcertification

Number ofemployees usingdisability leave

% of totalemployees

disability leave

Average peremployee

Estimatedcost

Grade (Salaryband/level)

Executive &M a n a g e m e n t 0 0 0 0% 0 0

R e s e a rc h e r s 0 0 0 0% 0 0

R e s e a rch support 0 0 0 0% 0 0

Admin/Fin s u p p o rt 0 0 0 0% 0 0

To t a l 0 0 0 0% 0 0

Table 8.3 – Annual Leave, 1 April 2002 to 31 March 2003

Table 9.1 – Collective Agreements, 1 April 2002 to 31 March 2003

Table 9.2 – Misconduct and discipline

Total days taken

Number of employees in grade

Average per employee

Grade(Salary band/level)

Executive &M a n a g e m e n t 1 8 7 8 2 3

R e s e a rc h e r s 5 3 5 1 1

R e s e a rch support 4 3 3 1 4

Admin/Fin support 1 5 4 8

To t a l 2 9 8 2 0 1 5

Number % of totalOutcomes of disciplinary hearings

Verbal warn i n g 0 0

Written warn i n g 0 0

Final written warn i n g 0 0

Not guilty 0 0

Case withdrawn 0 0

D i s m i s s a l 0 0To t a l N I L N I L

NONETotal collective agreements

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Table 10.1 Skill development by salary band, 1 April 2002 to 31 March 2003

Internal training External training ExpenditureGrade (Salaryband/level)

Training dayequivalents


Total expenditure( R )

Average daysper employee


Average peremployee

Executive &M a n a g e m e n t 8 0 0 1 1 1 . 3 7 1 7 , 4 5 6 2 , 1 8 2

R e s e a rc h e r s 5 0 0 2 4 4 . 8 0 4 4 , 8 8 8 8 , 9 9 7

R e s e a rch support 3 0 0 1 3 4 . 3 3 1 5 , 7 9 4 5 , 2 6 4

Admin/Fin s u p p o rt 4 0 0 7 1 . 7 5 4 , 9 8 8 1 , 2 4 7

To t a l 2 0 0 0 5 5 2 . 7 5 8 3 , 1 2 6 4 , 1 5 6

Table 10.2 – Skills development by race, gender, and disability, 1 April 2002to 31 March 2003

Internal training External training ExpenditureGrade (Salaryband/level)






Average peremployee

M a l e ( 7 ) – 5 0 . 7 1 2 2 , 8 8 5 3 , 2 6 9 . 2 8

F e m a l e ( 4 ) – 8 2 2 0 , 2 2 5 5 , 0 5 6 . 2 5

AFRICAN

M a l e ( 1 ) –

F e m a l e ( 4 ) – 2 9 7 . 2 5 3 0 , 6 8 1 7 , 6 7 0

WHITE

M a l e ( 0 ) – – – – –

F e m a l e ( 2 ) – 1 0 5 8 , 0 4 7 4 , 0 2 3 . 5 0

COLOURED

Employees with d i s a b i l t y – – –

To t a l ( 2 0 ) – 5 5 2 . 7 5 8 3 , 1 2 6 4 , 1 5 6 . 3 0

M a l e ( 2 ) – 3 1 . 5 1 , 2 2 8 6 4 4

F e m a l e ( 0 ) – – – – –

ASIAN




Table 10.3 – Skills development by type of training, 1 April 2002 to31 March 2003

Training ExpenditureType of training

Number ofbeneficiaries

Average daysper person



% of total Average peremployee

Equity aware n e s s – –

I n t e rnal training – – – – – –

F o rmal training c e rtification, diploma 8 3 5 5 4 0 % 3 0 , 7 5 6 . 6 2 3 , 8 4 4 . 5 7

Computer training – – – – – –

Management development, PFMA, 4 2 0 5 2 0 % 5 2 , 3 6 9 . 3 8 1 3 , 0 9 2 . 3 4L R A

O ffice-based training

Policy-specific training

A B E T

O t h e r

To t a l 5 5 8 3 , 1 2 6

Table 10.4 – Total expenditure on skills development by programme,2002/03

With re g a rd to the actual expenditure, please note that this figure is diff e rent tothe actual figures in the financial statements for year ended 31 March 2003. Thisis so because diff e rent costs associated with training are accounted for ind i ff e rent line item expenditures in the financial statements 2002/03. The actuale x p e n d i t u re stated in this re p o rt includes costs associated with training whichincludes meetings, conferences, travel, accommodation and subsistence.

Approved establishment Medium-term expenditure estimatesFinancial and FiscalCommission

Originalestimate

Variance 2 0 0 4 / 0 5Actualexpenditure

2003/04 2005/06

To t a l 8 0 , 8 8 8 8 3 , 1 2 6 2 , 2 3 8 1 2 0 , 0 0 0 1 3 2 , 0 0 0 1 5 0 , 0 0 0

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Table 10.5 – Bursaries granted by salary levels, 1 April 2002 to 31 March2003

Table 10.6 – Bursaries granted by race, gender and disability, 1 April 2002to 31 March 2003

No bursaries were granted for the reporting period.

Table 11.1 – Injury on duty, 1 April to 31 March 2003

Beneficiary profileSalary levelsNumber of


in salary band% of total in salary band

Cost(R’000)

Per capita cost

Cost

Executive &M a n a g e m e n t 0 8 0 0 0

R e s e a rc h e r s 0 5 0 0 0

R e s e a rch support 0 3 0 0 0

Admin/Fin s u p p o rt 0 4 0 0 0

To t a l 0 2 0 0 0 0

Number % of totalNature of injury on duty

R e q u i red basic medical attention only 0 0

Te m p o r a ry total disablement 0 0

P e rmanent disablement 0 0

F a t a l 0 0

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ANNUAL REPORT 2002-2003 — FINANCIAL AND FISCAL COMMISSION

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Act No. 99.1997 FINANCIALAND FISCALCOMMISSION ACT, 1997

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FINANCIAL AND FISCALCOMMISSION ACT(Act No. 99, 1997)

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ACTTo give effect to the constitutional requirements relating to the Financial and Fiscal Commission; and to provide for matters in connection therewith.

(English text signed by the President.)(Assented to 26 November 1997.)

BE 1T ENACTED by the Parliament of the Republic of South Africa, asfollows:—

ARRANGEMENT OF SECTIONS

l. Definitions

Part 1 5

Status, functions and powers of Commission

2. Status3. Functions4. Powers

Part 2 10

Membership of Commission5. Composition6. Chairpersons7. Qualifications8. Terms of office 159. Remuneration, allowances and benefits

10. Resignations11. Removal from office12. Vacancies13. Acting Chairperson

Part 3

Operating procedure of Commission14. Meetings15. Quorums16. Rules of procedure 2517. Committees

18. Assignment of powers and duties

Part 4

Administration ant staff matters

19. Administrative responsibilities of Chairperson 3020. Terms and conditions of employment21. Pension benefits22. Services of non-employees




Part 5

Finances of Commission

23. Funding24. Accountability25. Audits 5

Part 6

Miscellaneous

26. Annual report27. Information required by Commission28. Liability of Commission 1029. Protection of confidential information30. Regulations

Part 7

Transitional arrangements

31. Definitions 1532. Members of previous Commission33. Transfer of assets. liabilities, staff, etc.34. Financial and administrative records35. Short title and commencement

Definitions 201. In this Act. unless the context indicates otherwise—

“Commission” means the Financial and Fiscal Commission referred to in section;“employee”, except in sections 20(1), 21 and 33, includes a member of the publicservice seconded to the Commission; 25“financial year” means the financial year of the Commission, which is the same asthat of state departments;“Minister” means the Minister of Finance;“organ of state” means the same as in section 239 of the Constitution;“President” means the President acting as head of the national executive in terms 30of section 85 of the Constitution;“state department” means a department, administration or office listed inSchedule l or 2 of the Public Service Act, 1994 (Proclamation No. 103 of 1994);“this Act” includes any regulations made in terms of section 30.

PART 1 35

STATUS, FUNCTIONS AND POWERS OF COMMISSION

Status

2. The Financial and Fiscal Commission established by section 220 of the Constitution is a juristic person, independent and subject only to the Constitution, this Act and the law. 40

Functions

3. (1) The Commission acts as a consultative body for, and makes recommendations and givesadvice to, organs of state in the national, provincial and local spheres of government on financialand fiscal matters.

(2) The Commission— 45(a) must perform the functions mentioned in subsection (1) to the extent that its

performance of those functions are envisaged in the Constitution or required by national legislation; and

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(b) may perform those functions— (i) on its own initiative; or

(ii) on request of an organ of state.(3) The Commission must be impartial.(4) No person or organ of state may interfere with the functioning of the Commission. 5(5) All organs of state, when appropriate, must assist the Commission to perform its

functions effectively.(6) The Commission must submit for tabling copies of all its recommendations made

in terms of a provision of the Constitution to both Houses of Parliament and to theprovincial legislatures. 10

Powers

4. (1) The Commission may do all that is necessary or expedient to perform itsfunctions effectively, which includes the power to—

(a) determine its own staff establishment and appoint employees in posts on thestaff establishment 15(b) obtain the services of any person, including any organ of state or institution to

perform any specific act or function;(c) confer with any person or organ of state;(d) acquire or dispose of any right in or to property, but ownership in immovable

property may be acquired or disposed of only with the consent of the Minister; 20(e) open, and operate on, its own bank accounts;

insure itself against any loss, damage, risk or liability;(g) perform legal acts, or institute or defend any legal action in its own name;(h) do research and publish reports; and(i) do anything that is incidental to the exercise of any of its powers. 25

(2) The Commission may not borrow money or overdraw its bank accounts.

PART 2

MEMBERSHIP OF COMMISSION

Composition

5. In terms of section 221(1) of the Constitution, the Commission consists of the 30following women and men appointed by the President:

(a) A chairperson and a deputy chairperson; (b) nine persons, each of whom is nominated by the Executive Council of a

province, with each province nominating only one person after nominations have been invited in the provincial gazette and in at least two newspapers 35circulating in the province;

(c) two persons nominated by organised local government in accordance with the Organised Local Government Act, 1997; and

(d) nine other persons.

Chairpersons 40

6. The Chairperson and Deputy Chairperson of the Commission are appointed in terms of section 221(1)(a) of the Constitution.

Qualifications

7. A member of the Commission must have appropriate expertise

Terms of office 45

8. (1) The members of the Commission must be appointed for a term not exceedingfive years.




(2) A member maybe re-appointed when that member’s term expires.

Remuneration, allowances and benefits

9. (1) The remuneration, allowances and other benefits of members of theCommission must be determined by the President, taking into account—

(a) the recommendations of the Minister; 5(b) the remuneration, allowances and other benefits of members of other

commissions established by the Constitution;(c) the role, duties and responsibilities of a member of the Commission;(d) affordability in relation to the responsibilities of the Commission;(e) the level of expertise and experience required of a member of the 10

Commission; and;(f) any relevant recommendations of the independent commission referred to in

section 219(2) of the Constitution.

(2) The remuneration of a member may not be reduced during the term of the member.

Resignations 15

10. A member of the Commission may resign by giving at least three months’ written notice tothe President, but the President may accept a shorter notice period in a specific case.

Removal from office

11. (1) The President may remove a member of the Commission from office, but only 20on the ground of misconduct, incapacity or incompetence.(2) A decision to remove a member on the ground of misconduct or incompetence

must be based on a finding to that effect by a tribunal appointed by the President.(3) The President may suspend a member of the Commission from office while

awaiting the finding of the tribunal concerning that member. 25(4) The President must consult—

(a) the Premier of a province before removing from office a member nominatedby that province in terms of section 5(b); or

(b) organised local government before removing from office a member nominatedin terms of section 5(c). 30

Vacancies

12. As soon as practical after a vacancy has occurred in the Commission, thePresident must appoint another person in accordance with section 5 to fill the vacancy.

Acting Chairperson

13. If the Chairperson of the Commission is absent from office or otherwise unable to 35perform the functions of office, or during a vacancy in the office of Chairperson, the Deputy Chairperson acts as Chairperson.

PART 3

OPERATING PROCEDURE OF COMMISSION

Meetings 40

14. (1) The Commission decides when and where it meets, or may authorise theChairperson to decide on its behalf.

(2) At least four meetings must be held each year.(3) The Chairperson or the Deputy Chairperson presides at meetings of the

Commission. but if both are absent from a meeting, the members present must elect 45another member to preside at that meeting.

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(4) A member who has a personal or financial interest in any matter before the Commission, must disclose that interest and withdraw from the proceedings of the Commission when that matter is considered.

Quorums

15. (1) The majority of the members of the Commission constitutes a quorum for a 5meeting of the Commission.,

(2) A question before the Commission is decided with a supporting vote of at least twothirds of the members present.

Rules of procedure

16. The Commission must— l0(a) determine rules of procedure for the conduct of its business; and(b) keep minutes of its proceedings and decisions.

Committees

17. (l) The Commission may—(a) appoint one or more committees to assist the Commission in the performance 15

of any of its functions or the exercise of any of its powers; or(b) dissolve a committee at any time

(2) A committee consists of—(a) two or more Commission members; or(b) at least one Commission member and at least one other person. 20

(3) The Commission—(a) must determine the functions of a committee;(b) must appoint the chairperson and, members of a committee, but only a

Commission member may be appointed as the chairperson;(c) may dismiss a member of a committee at any time; 25(d) may determine a committee’s procedure; and(e) must determine, after consulting the Minister, the remuneration, allowances

and other benefits of office of members of a committee who are notCommission members or employees.

Assignment of powers and duties 30

18. (1) The Commission may—(a) delegate any of the Commission’s powers to a Commission member, committee or

employee; or(b) instruct any Commission member, committee or employee to perform any ofthe Commission’s duties. 35

(2) A delegation instruction in terms of subsection (1)—(a) is subject to any conditions the Commission may impose; and(b) does not divest the Commission of the responsibility concerning the exercise

of the power or the performance of the duty.(3) The Commission may confirm, vary or revoke any decision taken by a 40

Commission member, committee or employee in consequence of a delegation or instruction.

PART 4

ADMINISTRATION AND STAFF MATTERS

Administrative responsibilities of Chairperson 45

19. (1) The Chairperson of the Commission is the chief-executive officer and also theaccounting officer of the Commission.

(2) As chief-executive officer the Chairperson is responsible for—(a) the formation and development of an efficient administration;(b) the organisation, control and management of the staff; 50(c) the maintenance of discipline; and




(d) the carrying out of the decisions of the Commission.(3) As accounting officer the Chairperson is responsible for—

(a) all income and expenditure of the Commission;(b) all assets and the discharge of all liabilities of the Commission; and(c) the proper and diligent implementation of Part 5. 5

Terms and conditions of employment

20. (1) An employee of the Commission is employed subject to the terms and conditions of employment determined by the Commission.

(2) Persons in the public service seconded to the Commission perform their dutiessubject to the control and discipline of the Chairperson of the Commission. 10

Pension benefits

21. (l) A person appointed as an employee of the Commission may become a member of theGovernment Employees’Pension Fund mentioned in section 2 of the Government Employees’Pension Law, 1996 (Proclamation No. 21 of 1996).

(2) An employee of the Commission who becomes a member of that pension fund, is 15entitled to pension and retirement benefits as if that person is an official in the public service.

Services of non-employees

22. 1f the Commission contracts for the services of any person, other than an employee,to perform any specific act or function, the Commission may remunerate that 20person, and may reimburse that person for expenses.

PART 5

FINANCES OF COMMISSION

Funding

23. (1) The Commission is entitled to money appropriated annually by Parliament to 25enable it to perform its functions effectively.

(2) For the purposes of subsection (1) the Chairperson of the Commission—(a) must submit to the Minister during each financial year, but before a date set by

the Minister, estimates of the Commission’s income and expenditure for thenext financial year; and 30

(b) may submit to the Minister at any time during a financial year estimates of theCommission’s income and expenditure supplementary to those mentioned inparagraph (a).

(3) When submitting estimates the Chairperson must disclose full particulars of anyincome which has accrued, or is expected to accrue, to the Commission from a source 35other than an appropriation by Parliament.

(4) The Commission must refund to the National Revenue Fund any money paid to the Commission in terms of subsection (1) that has not been used at the end of a financial year, unless the Minister agrees that the Commission may retain the money.

Accountability 40

24. As accounting officer of the Commission, the Chairperson must—(a) keep full and proper records of—

(i) all income and expenditure of the Commission; and (ii) all the Commission’s assets, liabilities and financial transactions;

(b) ensure that the Commission’s available resources are properly safeguarded 45and used in the most efficient and effective way;

(c) ensure that all statutory measures applicable to the Commission are complied with; and

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(d) within three months after the end of each financial year, prepare annual financial statements in accordance with generally accepted accounting practice.

Audits

25. The Auditor-General must audit the accounts and financial records of the 5Commission.

PART 6

MISCELLANEOUS

Annual report

26. (1) The Commission must annually submit to both Houses of Parliament, to each 10provincial legislature and to the national organisation representing organised localgovernment recognised in terms of the Organised Local Government Act, 1997, a reporton the activities of the Commission during a financial year.

(2) The report must be submitted within six months after the end of the financial yearto which it relates, and must include— l5

(a) a summary of all recommendations made by the Commission in terms of arequirement of the Constitution; and

(b) audited financial statements reflecting the Commission’s financial affairsduring the year, consisting of at least—

(i) a balance sheet; 20(ii) an income statement;

(iii) a, cash flow statement; and(iv) a report of the auditors.

Information required by Commission

27. (1 ) The Commission may obtain information it requires for the performance of its 25functions from the Central Statistical Service.

(2) Any information which the Commission requires for the performance of its functions and which is available to an organ of state or to any institution that derives anyfunds from the National Revenue Fund, a Provincial Revenue Fund or a municipality,

must be supplied free of charge to the Commission, on the Commission’s request, by 30that organ of state or institution.

Liability of Commission

28. (1) The State Liability Act, 1957 (Act No. 20 of 1957), applies, with the necessary changes.in respect of the Commission, and in such application a reference in that Act to the Minister of a department concerned must be construed as a reference to the 35Chairperson of the Commission.

(2) No person, including the Commission, is liable for anything done or omitted in good faith when performing a function or exercising a power in terms of this Act.

Protection of confidential information

29. (1) No person may disclose any information acquired on a confidential basis in the 40course of the application of this Act, except when—

(a) necessary for the purposes of this Act;(b) required in terms of other legislation or the law;(c) required in the course of legal proceedings; or(d) a court so orders. 45

(2) A person who contravenes subsection (l) is guilty of an offense and on convictionliable to a fine or to imprisonment not exceeding one year or to a fine and imprisonment.




Regulations

30, The Minister, with the concurrence of the Commission, may make regulations. not inconsistent with this Act or any other Act of Parliament, prescribing procedures to facilitate the performance by the Commission of its functions.

PART 7 5

TRANSITIONALARRANGEMENTS

Definitions

31. In this Part— “new Commission” means the Commission referred to in section 2; “previous Commission” means the Financial and Fiscal Commission established by section 198 of the previous Constitution; 10“previous Constitution” means the Constitution of the Republic of South Africa, 1993 (Act No. 200 of 1993).

Members of previous Commission

32. (1) A person who held office in the previous Commission immediately before this 15Act took effect:—

(a) as the Chairperson or Deputy Chairperson, is regarded as having been appointed as the Chairperson or the Deputy Chairperson of the new Commission in terms of section 5(a) of this Act;

(b) as a member designated by a provincial Executive Council in terms of section 20200( 1)(b) of the previous Constitution, is regarded as having been nominated by that Council and appointed to the new Commission in terms of section 5(b)of this Act; and

(c) as a member appointed in terms of section 200(1)(c) of the previous Constitution, is regarded as having been appointed to the new Commission in 25terms of section 5(d) of this Act.

(2) The Chairperson and Deputy Chairperson are regarded as having been appointed to the new Commission for a term of five years as from the date this Act took effect.

(3) The members referred to in subsection (1)(b) and (c) are regarded as having been appointed to the new Commission for a term of four years as from the date this Act took 30effect.

Transfer of assets, liabilities, staff, etc.

33. When this Act takes effect—(a) all assets, liabilities, rights and obligations of the previous Commission are

vested in the new Commission; 35(b) an employee of the previous Commission becomes an employee of the new

Commission—(i) subject to the terms and conditions of employment that were applicable

to that person as an employee of the previous Commission, until alteredin terms of section 20; and 40

(ii) with retention of all accrued pensionable service, leave and otherbenefits: and

(c) anything done by or on behalf of the previous Commission is regarded ashaving been done by or on behalf of the new Commission.

Financial and administrative records 45

34. The new Commission is entitled to all financial, administrative and other recordsof the previous Commission.

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Short title and commencement

35. This Act is called the Financial and Fiscal Commission Act, 1997, and takes effecton 1 January 1998.

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TELEPHONE (27) 0861 315710

FAX: (27) (011) 207-2344

WEBSITE: http://www.ffc.co.za

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