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?