Division of Revenue Act, 2011 (Act No. 6 of 2011)Chapter 5 : Duties of Municipalities, Provincial Treasuries and National Treasury29. Duties of provincial treasuries |
| 1) | The provincial treasury must reflect Schedule 5 allocations separately in the province’s appropriation bill or a schedule to its appropriation bill. |
| 2) |
| a) | The provincial treasury must, on the same day that its budget is tabled in the provincial legislature, or a later date approved by the National Treasury, but not later than 14 days after this Act takes effect, publish the following in the Gazette: |
| i) | The indicative allocation per municipality for every allocation to be made by the province to municipalities from the province’s own funds; |
| ii) | the indicative allocation to be made per school in the province; |
| iii) | the indicative allocation to any national or provincial public entity for the implementation of a programme funded by a Schedule 5 allocation on behalf of a province or for assistance provided to the province in implementing such a programme; |
| iv) | the envisaged division of the allocation contemplated in subparagraphs (i) and (ii), in respect of each municipality and school, for the next financial year and the 2013/14 financial year; |
| v) | the conditions and other information in respect of the allocations referred to in subparagraphs (i), (ii) and (iii) to facilitate performance measurement and the use of required inputs and outputs; and |
| vi) | the budget of each hospital in a format determined by the National Treasury. |
| b) | The allocations and budgets referred to in paragraph (a) must be deemed to be final if the legislature passes the appropriation bill without any amendments. |
| c) | In the event that the legislature amends the appropriation bill, the accounting officer of the provincial treasury must publish amended allocations and budgets in the Gazette within 14 days of the legislature passing the appropriation bill, which allocations must align to the appropriation bill as passed by the legislature, and which must be deemed to be final. |
| 3) |
| a) | Despite subsection (2) or any law, a provincial treasury may, in accordance with a framework determined by the National Treasury, amend the allocations referred to in subsection (2) or make additional allocations to municipalities that were not published in terms of subsection (1) or (2). |
| b) | Any amendments to the allocations published in terms of subsection (2)(a) must be published in the Gazette not later than 14 February 2012. |
| c) | The allocations referred to in paragraph (a) must be deemed to be final if they are published in the Gazette in accordance with paragraph (b). |
| 4) |
| a) | A provincial treasury must, as part of its consolidated monthly report in terms of section 32 of the Public Finance Management Act, in the format determined by the National Treasury, report on— |
| i) | actual transfers received by the province from national departments; |
| ii) | actual expenditure on such allocations, excluding Schedule 4 allocations, up to the end of that month; and |
| iii) | actual transfers made by the province to municipalities, and actual expenditure by municipalities on such allocations, based on the most up to date information available from municipalities at the time of reporting. |
| b) | The report contemplated in paragraph (a) must include reports for each quarter, and be in the format and include the information as may be determined by the National Treasury. |
| 5) | A provincial treasury must— |
| a) | ensure— |
| i) | that a payment schedule is agreed between each provincial department and receiving institution referred to in subsection (2)(a); and |
| ii) | that transfers are made promptly in accordance therewith. |
| b) | submit the payment schedules to the National Treasury within 14 days of this Act taking effect. |
| 6) | Should a provincial treasury fail to comply with the requirement to make transfers promptly to a receiving officer in accordance with the agreed payment schedule, as required in terms of subsection (5)(a), the receiving officer concerned may request the provincial treasury to immediately make the transfer to the receiving officer, or to provide written reasons within three business days as to why the transfer has not been made. |
| 7) | Should a provincial treasury fail to either make the transfer requested by the receiving officer or provide reasons within the period stipulated in subsection (6), or if the receiving officer disputes the reasons provided by the provincial treasury as to why the transfer has not been made, then the receiving officer may request the National Treasury to investigate the matter with the provincial treasury concerned. |
| 8) | When the National Treasury is requested to investigate a failure by a provincial treasury to promptly effect transfer to a receiving officer in terms of subsection (7), the National Treasury must investigate the matter, assess any reasons given by the provincial treasury as to why the transfer was not effected, and either direct the provincial treasury to immediately effect the transfer, or provide reasons to the receiving officer concerned confirming why the provincial treasury was correct in not effecting the transfer, and advise the provincial treasury and the receiving officer as to what steps should be taken. |