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CONDITIONAL GRANTS
Local Government Budget Analysis, National Treasury | 13 June 2013
1
OVERVIEW OF PRESENTATION
CONDITIONAL GRANTS
What are
CGs, why
and which
CGs do we
have?
DoRA and
the
framework
Section 71 Unspent grants Withholding
New grant (MWIG)
Differentiated and
integrated
Allocations Responsib
ilities
Verification
& sign offs
WC
Performance Roll overs
Offsetting or
return to NRF
Stopping
transfers
and
reallocating
2
What, why and which??
Conditional Grants v/s Equitable Share
We have CGs to help address
There are 18 Conditional Grants e.g.
Introduction of a new grant MWIG derived from MIG
Economic
Development Backlogs
EPWP
Effectiveness
& efficiency
ISDG • Capacity build up
MIG • Local Gov. systems
DoRA and the Framework
The origins of DoRA-
DoRA Informs Conditional Grant - allocations and
responsibilities
4
Constitution MFMA DoRA
CG Allocations
Allocations as per DoRA - Classification (Schedule)
- Allocation Criteria as per the DoRA Framework
Payment Schedule - Distribution of allocations
throughout MTREF. 1 July 2013 –
31March 2014
Safety Web System – Transaction Tracker
5
Responsibilities
As per the DoRA
Duties of Accounting Officers are outlined
as per the link above
6
As per the framework
Page 110- 169 framework for
Provincial CG
Section 29 / SLA / Gazette
Page 170-204 framework for
municipal CG
The frameworks outline
responsibilities as per
grant
CGs and their responsible NTOs
7
Department of Cooperative Governance and
Traditional Affairs
Department of Public Works
National Treasury
Department of Human Settlements
Department of Transport
Department of Energy
Department of Water Affairs
Municipal Infrastructure GrantExpanded Public Works Programme Integrated
Grant for Municipalities
Neighbourhood Development Partnership Grant
Conditional Grant National Transferring Officer (NTO)
Urban Settlement Development Grant
Rural Road Asset Management Grant
Integrated National Electrification Programme
Regional Bulk Infrastructure Grant
Section 71
MFMA Section 71
Quarterly Performance Report
Verification Western Cape
& Sign Offs Performance
8
WC Performance
70% of the transferred
amount spent
1.4million v/s 1.5million
9
What can we do
about this?
2 339 953
2 086 207
1 421 192 1 456 861
0
500 000
1 000 000
1 500 000
2 000 000
2 500 000
Allocation afteradjustments
Transferred todate
YTD Performanceby NTO
YTD Performanceby Munis
Western Cape Performance as at the end of the third quarter 2012/13 (R000')
Unspent Conditional Grants
• Treatment of unspent grants derived from Section 21 of DoRA
10
Due to unspent CG
Offsetting
Return to NRF
Rollovers
Roll Overs
11
Rollover
Request letter
Projects linked to Unspent
Proof of Project
Project Progres
s
Funds committe
d
CFO and time
period
Unspent
Grants
Roll over
Circular 67 - Positive bank
Balance, in year reporting,
disclosure of grant
performance
Vat
Time line
12
30 June
Year End
30 August Roll over
deadline + AFS
1 October
Confirmation
15 October
Alternative payment method
21 October NRF
November ES offset
Offsetting Unspent CG
13
National Treasury offsets following failure of repayment to NRF
Process leading to offsetting:
AFS
Opportunity
to
Refund
NRF Offset
through ES
Section 71
Adjustment
With-holding
Due to:
1. Non Compliance
2. Unspent Roll-over
3. Under-Expenditure
Stopping and Reallocation
14
• Exhausted points 1-3
• Best practice standards
and guidelines
Section 17 Chapter 3 DoRA DoRA Chapter 3 Section
18-19
Communication
prior action
THANK YOU
Questions?