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Division of Revenue Act, 2011 (Act No. 6 of 2011)

Chapter 3 : Conditional allocations to Provinces and Municipalities

Part 2 : Duties of Accounting Officers in respect of Schedule 4 to 9 Allocations

10. Duties of transferring national officer in respect of Schedule 5 to 8 allocations

 

 

a) not later than 14 days after this Act takes effect, certify to the National Treasury that—
i) allocation frameworks, including conditions and monitoring provisions, are reasonable and do not impose excessive administrative responsibility on receiving provincial departments and municipalities beyond the provision of standard management information;
ii) monitoring provisions are compatible and integrated with and do not duplicate other relevant and related national, provincial and local systems;
iii) in respect of a Schedule 5 allocation, any business plans requested in respect of how allocations will be utilised by a province have been approved prior to the start of the financial year;
iv) in respect of a Schedule 6 allocation transferred to a municipality, any business plans requested in respect of how allocations will be utilised by a municipality have been approved prior to the start of the financial year;
b) transfer funds only after information required in terms of this Act has been secured and all relevant information has been provided to the National Treasury;
c) transfer funds only in accordance with a payment schedule determined in accordance with section 21;
d) deposit funds only into the primary bank account of a province or municipality, or, where appropriate, into the corporation for public deposits account of a province or the bank account designed for the transfer of the Gautrain Rapid Rail Link Grant; and
e) ensure that all other arrangements or requirements as stipulated in this Act or in the relevant framework for the particular allocation necessary for the transfer of an allocation have been complied with prior to the start of the financial year, and are complied with throughout the financial year.

 

2) The transferring national officer must submit all relevant information and documentation referred to in subsection (1)(a) to the National Treasury within 14 days after this Act takes effect.

 

3) A transferring national officer who has not complied with subsection (1) must transfer the allocation in the manner instructed by the National Treasury, including transferring the allocation as an unconditional allocation.

 

4) Before making the first transfer of any allocation, the transferring national officer must take note of any notice in terms of section 30(1) from the National Treasury outlining the details of the account for each province or municipality.

 

5) Despite anything to the contrary contained in any law, a transferring national officer must in respect of any allocation, as part of the report contemplated in section 40(4)(c) of the Public Finance Management Act, not later than 20 days after the end of each month, and in the format determined by the National Treasury, submit to the National Treasury information for the month reported on and for the financial year up to the end of that month on—
a) the amount of funds transferred to a province or municipality;
b) the amount of funds withheld or stopped from any province or municipality, the reasons for the withholding or stopping and the steps taken by the transferring national officer and the receiving officer to deal with the matters or causes that necessitated the withholding or stopping of the payment;
c) the actual expenditure incurred by the province or municipality in respect of a Schedule 5 or 6 allocation;
d) the actual expenditure incurred by the transferring national officer in respect of a Schedule 7 allocation;
e) any matter or information that may be prescribed in the relevant framework for the particular allocation; and
f) such other issues as the National Treasury may determine.

 

6) A transferring national officer must submit a quarterly performance report within 45 days after the end of each quarter to the National Treasury, in accordance with the requirements of the relevant framework.

 

7) The transferring national officer must evaluate the performance of programmes funded or partially funded by the allocation and submit such evaluations to the National Treasury, within four months in respect of a province, and six months in respect of a municipality, after the end of the financial year.

 

8) The transferring national officer for the Human Settlements Development Grant, after consultation with the receiving officer and the National Treasury, must determine the allocations from the Human Settlements Development Grant for each municipality that receives the Urban Settlements Development Grant and submit those allocations to the National Treasury not later than 14 days after this Act takes effect, and the National Treasury must publish those allocations in the Gazette within 14 days after receipt of the allocations.