Division of Revenue Act, 2018 (Act No. 1 of 2018)Chapter 3 : Conditional Allocations to Provinces and MunicipalitiesPart 2 : Duties of accounting officers in respect of Schedule 4 to 7 allocations12. Duties of receiving officer in respect of Schedule 5 or 7 allocations |
| (1) | The receiving officer of a Schedule 5 or 7 allocation must ensure compliance with the relevant framework. |
| (2) | The relevant receiving officer must, in respect of a Schedule 5 or 7 allocation transferred to— |
| (a) | a province, as part of the report required in section 40(4)(c) of the Public Finance Management Act, report on the matters referred to in subsection (3) and submit a copy of that report to the relevant provincial treasury and the transferring officer; |
| (b) | a municipality, as part of the report required in terms of section 71 of the Municipal Finance Management Act, report on the matters referred to in subsection (4) and submit a copy of that report to the relevant provincial treasury, the National Treasury and the relevant transferring officer; and |
| (c) | a province or municipality, submit a quarterly non-financial performance report within 30 days after the end of each quarter to the transferring officer and the relevant provincial treasury. |
| (3) | A report for a province in terms of subsection (2)(a) must set out for the month in question and for the 2018/19 financial year up to the end of the month— |
| (a) | the amount received by the province; |
| (b) | the amount of funds stopped or withheld in terms of section 18 or 19 and the reason for the stopping or withholding; |
| (c) | the actual expenditure by the province in respect of Schedule 5 and 7 allocations; |
| (d) | the amount transferred to any national or provincial public entity to implement a programme funded by a Schedule 5 allocation on behalf of a province or to assist the province in implementing the programme; |
| (e) | the available figures regarding the expenditure by a public entity referred to in paragraph (d); |
| (f) | the extent of compliance with this Act and with the conditions of the allocation provided for in its framework, based on the available information at the time of reporting; |
| (g) | an explanation of any material difficulties experienced by the province regarding an allocation which has been received and a summary of the steps taken to deal with such difficulties; |
| (h) | any matter or information that may be determined in the framework for the allocation; and |
| (i) | such other matters and information as the National Treasury may determine. |
| (4) | A report for a municipality in terms of subsection (2)(b) must set out for the month in question and for the 2018/19 financial year up to the end of the month— |
| (a) | the amount received by the municipality; |
| (b) | the amount of funds stopped or withheld in terms of section 18 or 19 and the reason for the stopping or withholding; |
| (c) | the extent of compliance with this Act and with the conditions of the allocation or part of the allocation provided for in its framework; |
| (d) | an explanation of any material problems experienced by the municipality regarding an allocation which has been received and a summary of the steps taken to deal with such problems; |
| (e) | any matter or information that may be determined in the framework for the allocation; and |
| (f) | such other matters and information as the National Treasury may determine. |
| (5) | The receiving officer must evaluate the financial and non-financial performance of the provincial department or municipality, as the case may be, in respect of programmes partially or fully funded by a Schedule 5 allocation and submit such evaluation to the transferring officer and the relevant provincial treasury within two months after the end of the 2018/19 financial year applicable to a provincial department or a municipality, as the case may be. |
| (6) |
| (a) | The receiving officer of the Human Settlements Development Grant must, in consultation with the transferring officer, publish in the Gazette within 14 days after this Act takes effect, the planned expenditure from the Human Settlements Development Grant, for the 2018/19 financial year, the 2019/20 financial year and the 2020/21 financial year per municipality with level one or level two accreditation. |
| (b) | The planned expenditure must indicate the expenditure to be undertaken directly by the province and transfers to each municipality. |
| (c) | The receiving officer of the Human Settlements Development Grant may, by notice in the Gazette, after taking into account the performance of the municipality and after consultation with the affected municipality and in consultation with the transferring officer, amend the planned expenditure for that municipality published in terms of paragraph (a). |