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Division of Revenue Act, 2014 (Act No. 10 of 2014)

Chapter 4 : Matters Relating to all Allocations

27. Preparations for 2015/16 financial year and 2016/17 financial year

 

 

(1)        

(a) A category C municipality that receives a conditional allocation in terms of this Act must, using the indicative conditional allocations to that municipality for the 2015/16 financial year and the 2016/17 financial year as set out in Column B of the Schedules to this Act, by 2 October 2014—
(i) agree on the provisional allocations and the projects to be funded from those allocations in the 2015/16 financial year and the 2016/17 financial year with each category B municipality within the category C municipality’s area of jurisdiction; and
(ii) submit to the transferring national officer
(aa) the provisional allocations referred to in subparagraph (i); and
(bb) the projects referred to in subparagraph (i), listed per municipality.
(b) If a category C municipality and a category B municipality cannot agree on the allocations and projects referred to in paragraph (a), the category C municipality must request the relevant transferring national officer to facilitate agreement.
(c) The  transferring  national  officer  must  take  all  necessary  steps  to  facilitate agreement as soon as possible, but no later than 60 days after receiving a request referred to in paragraph (b).
(d) Any proposed amendment or adjustment of the allocations that is intended to be published in terms of section 30(3)(b) must be agreed with the relevant category B municipality,  the  transferring  national  officer  and  the  National  Treasury,  before publication and the submission of the allocations referred to in paragraph (a)(ii).
(e) If agreement is not reached between the category C municipality and the category B municipality on the provisional allocations and projects referred to in paragraph (a) before 2 October 2014, the National Treasury may determine the provisional allocations and  provide  those  provisional  allocations  to  the  affected  municipalities  and  the  ransferring national officer.
(f)
(i) The transferring national officer must submit the final allocations based on the provisional allocations referred to in paragraph (a)(i) and (ii) and (e) to the National Treasury by 5 December 2014.
(ii) If the transferring national officer fails to submit the allocations referred to in subparagraph (i) by 5 December 2014, the National Treasury may determine the appropriate allocations, taking into consideration the indicative allocations for the 2015/16 financial year.

 

(2)        

(a) The  transferring  national  officer  of  a  conditional  allocation,  using  the indicative conditional allocations for the 2015/16 financial year and the 2016/17 financial year as set out in Column B of the affected Schedules to this Act, must, by 2 October 2014, submit to the National Treasury for approval—
(i) the provisional allocations to each province or municipality in respect of new conditional allocations to be made in the 2015/16 financial year;
(ii) any amendments to the indicative allocations for each province or municipality set out in Column B of the affected Schedules in respect of existing conditional allocations; and
(iii) the draft frameworks for the allocations referred to in subparagraphs (i) and in the format to be determined by the National Treasury.
(b) Any proposed amendment or adjustment for the 2015/16 financial year of the allocation criteria of an existing conditional allocation must be agreed with the National Treasury before the submission of the provisional allocations and draft frameworks referred to in paragraph (a)(ii) and (iii).
(c) If the transferring national officer fails to comply with paragraph (a) by 2 October 2014, the National Treasury may determine—
(i) the provisional allocations in paragraph (a)(i);
(ii) any amendments to the indicative allocations contemplated in paragraph (a)(ii); and
(iii) the draft frameworks for the allocations referred to in paragraph (a)(iii), and submit the information to the affected provinces or municipalities.
(d)
(i) The transferring national officer must, under his or her signature, submit the final allocations and frameworks based on the provisional allocations and frameworks referred to in paragraph (a)(i) and (ii) to the National Treasury by 5 December 2014.
(ii) The transferring national officer may in writing delegate to an employee of his or her department the signing off envisaged in subparagraph (i), and, in the event of such delegation, a copy of the written delegation must accompany the allocations and frameworks submitted in terms of subparagraph (i).
(iii) If the transferring national officer fails to submit the allocations and frameworks referred to in subparagraph (i) by 5 December 2014, the National Treasury may determine the appropriate allocations and frameworks taking into consideration the indicative allocations for the 2015/16 financial year.

 

(3) The National Treasury may instruct transferring national officers, accounting officers of the provincial treasuries and receiving officers to submit to it such plans and information for any conditional allocation as it may determine at specified times before the start of the 2015/16 financial year.

 

(4)
(a) For  purposes  of  the  Education  Infrastructure  Grant  or  Health  Facility Revitalisation Grant in the 2015/16 financial year, the accounting officer of the relevant provincial department must, in the format and on the date determined by the National Treasury, submit to the transferring national officer, the relevant provincial treasury and the National Treasury—
(i) approved project proposals for all projects in the planning stage in the 2015/16 financial year and 2016/17 financial year; and
(ii) approved concept reports for all projects in the design or construction stage in the 2015/16 financial year.
(b) For  purposes  of  the  Education  Infrastructure  Grant  or  Health  Facility Revitalisation Grant in the 2016/17 financial year, the accounting officer of the relevant provincial department must, in the format and on the date determined by the National Treasury, submit to the transferring national officer, the relevant provincial treasury and the National Treasury—
(i) a user asset management plan for all infrastructure programmes for a period of at least 10 years; and
(ii) an infrastructure programme management plan including at least a construction procurement strategy for infrastructure programmes or projects envisaged to commence within the period for the medium term expenditure framework.
(c) The National Treasury must notify the transferring national officer and the affected provincial departments which infrastructure programmes and projects it will propose for full or partial funding through the grant in the financial years in question.