Division of Revenue Act, 2013 (Act No. 2 of 2013) > Chapter 3 : Conditional Allocations to Provinces and Municipalities > Part 3 : Matters relating to Schedule 4 to 7 allocations

Despite anything to the contrary in the Public Finance Management Act or the Municipal Finance Management Act, any conditional allocation, or a portion thereof, that is not spent at the end of the financial year reverts to the National Revenue Fund, unless the roll-over of the allocation is approved in terms of subsection (2).

2)	The National Treasury may, at the request of a transferring national officer, receiving officer or provincial treasury, approve a roll-over of a conditional allocation to the next financial year if the unspent funds are committed to identifiable projects.

a)	The receiving officer must ensure that any funds that must revert to the National Revenue Fund in terms of subsection (1), are paid into that Fund.

b)	The receiving officer must-

i)	in the case of a provincial department, request the rollover of unspent funds through its provincial treasury; and

ii)	inform the transferring national officer of all processes regarding the request.

4)	The National Treasury may, in accordance with subsection (5), offset any funds which must revert to the National Revenue Fund in terms of subsection (1), but which have not yet been paid into that Fund-

a)	in the case of a province, against future advances for conditional allocations to that province; or

b)	in the case of a municipality, against future advances for the equitable share or conditional allocations to that municipality.

5)	Before any funds are offset in terms of subsection (4), the National Treasury must give the relevant transferring national officer, province or municipality-

a)	notice of the intention to offset amounts against future advances for allocations; and

b)	an opportunity, within 14 days of receipt of the notice, to-

i)	submit written representations and other written proof that the allocation, or a portion thereof, was either spent in terms of the relevant framework or is committed to identifiable projects;

ii)	propose alternative means acceptable to the National Treasury by which the unspent allocations can be paid into the National Revenue Fund; and

iii)	propose an alternative payment schedule in terms of which the unspent allocations will be paid into the National Revenue Fund.

6)	A notice referred to in subsection (5) must include the intended amount to be offset against allocations and the reasons for offsetting the amounts.

Division of Revenue Act, 2013 (Act No. 2 of 2013)