Public Finance Management Act
Section 32: Publishing of reports on state of budget
Section 39: Accounting officers’ responsibilities relating to budgetary control
Section 40 (4): Accounting officers’ reporting responsibilities
Division of Revenue Act, 2000
7. Conditional grants
| 1) | The transferring national officer responsible for a conditional grant set out in Schedule 3A or Schedule 3B must by 1 April 2000 or such date agreed upon with the Director-General, but not later than 30 June 2000, submit to the Director-General at least the following information: |
| a) | The purpose and conditions, if any, of the grant; |
| b) | the proposed criteria for the division of such grant among the provinces; |
| c) | any associated costs, including any future costs, arising directly or indirectly from the grant but not covered by it; |
| d) | the monitoring and reporting mechanisms for such grant; |
| e) | the proposed payment schedule for such grant; |
| f) | agreements, if any, of the MINMEC relating to such grant; and |
| g) | such other information that may be requested by the Director-General. |
| 2) | A transferring national officer must by 1 April 2000 or such later date agreed upon with the Director-General, but not later than 30 June 2000, certify to the Director-General that all arrangements, business plans, payment schedules and any other requirements deemed necessary to allow funds to be transferred to a province or municipality, are in place. |
| 3) | Before submitting the information required in subsections (1) and (2), the transferring national officer must consult with the receiving officer in respect of a grant to a province, or with SALGA in respect of a Schedule 3B grant to be received by a municipality. |
| 4) | The Director-General may exempt a grant from any of the requirements of subsections (1), (2) or (3). |
| a) | The transferring national officer must deposit, in accordance with a payment schedule determined by the Director-General after consultation with the head officials of provincial treasuries in respect of a deposit to a provincial Revenue Fund, a Schedule 3A or 3B grant into- |
| i) | the relevant provincial Revenue Fund; or |
| ii) | the relevant municipal banking account, where a Schedule 3B grant is transferred directly to a municipality. |
| b) | The transferring provincial officer must deposit, in accordance with a payment schedule determined by the transferring national officer after consultation with the Director-General, a Schedule 3B grant into the relevant municipal banking account. |
| 6) | Funds transferred to a provincial Revenue Fund must, subject to section 226 of the Constitution, only be withdrawn- |
| a) | in terms of an appropriation by a provincial Act; or |
| b) | in the case of a Schedule 3B grant transferred to a municipality through a province, as a direct charge against that Revenue Fund. |
| 7) | The receiving officer of a Schedule 3A or Schedule 3B grant must ensure- |
| a) | that it is properly managed and accounted for; |
| b) | that the funds are spent in accordance with its purpose and conditions; and |
| c) | that there is compliance with agreed reporting and monitoring mechanisms. |
| a) | The receiving officer in a municipality of a Schedule 3B or 3C grant must submit to a transferring provincial or national officer, as the case may be, a report on the grant in the prescribed form not later than five working days after the end of every month or such date prescribed in respect of such grant. |
| b) | The receiving officer in a province in respect of a Schedule 3A or 3C grant or the transferring provincial officer, as the case may be, must, by the tenth working day after each month or such date prescribed in respect of such grant, submit a report to the head official of the provincial treasury and to the transferring national officer. |
| 9) | The reports contemplated in subsection (8) must include- |
| a) | an outline of actual revenue and expenditure on the grant for a month and the projected total revenue and expenditure on the grant for the financial year, including projected commitments on it for the financial year; |
| b) | the reasons for any projected under-spending or over-spending on that grant and an identification of the measures to be taken to deal with such under-spending or over-spending. |
| c) | the projected roll-over into the next financial year; |
| d) | information on how the province or municipality receiving a grant complied with its conditions; and |
| e) | such other information as may be requested by the Director-General. |
| 10) | The transferring national officer and the head official of a provincial treasury must ensure that the report contemplated in subsection (9) is submitted in the prescribed form to the Director-General by the fifteenth working day after the end of each quarter or such date agreed upon with the Director-General. |
8. Agency payments
| 1) | The national accounting officer of a department or the provincial accounting officer of a provincial department responsible for transferring an agency payment is responsible for accounting for that agency payment and must, for the purpose of such accounting, by 1 April 2000 or such date agreed upon with the Director-General but not later than 30 June 2000 or such date agreed upon with the Director-General but not later than 30 June 2000, enter into agreements with the relevant provincial or municipal accounting officers regarding any responsibilities and obligations of the principal and agent departments concerning that agency payment, and must, if he or she is a national accounting officer, submit a schedule outlining such agreements to the Director-General, or must, if he or she is a provincial accounting officer, submit such a schedule to the head official of the provincial treasury concerned. |
| 2) | Subject. to subsection (1), an agency payment to a province must be deposited in a banking account approved by, and subject to the conditions determined by, the head official of a provincial treasury and must comply with the framework determined in terms of section 7 of the Public Finance Management Act. |
| 3) | A province or municipality performing an agency service may charge a two percent fee or such other amount agreed upon to cover the costs or rendering such service. |
9. Allocations in respect of capital grants
| 1) | In respect of grants identified as capital grants in Schedules 3A, 3B and 3C, every transferring national officer must, on a quarterly basis, provide the Director-General with a schedule outlining the transfer agreements for such grants in respect of each province or municipality receiving such grant during that quarter. |
| 2) | The agreements referred to in subsection (1) must include- |
| a) | the conditions of the grant; |
| c) | the projected dates of transfers of the grant; and |
| d) | the projected financial implications in future years, |
resulting from the project funded by the grant.
| 3) | The transfer of funds in respect of allocations for capital grants must be in accordance with a payment schedule determined by the national accounting officer responsible for that allocation after consultation with the Director-General, relevant provincial accounting officers and the head officials of the provincial treasuries concerned. |
| 4) | Funds transferred to the provincial Revenue Fund or a municipal banking account for capital projects may not be used as collateral, pledge or any other form of security or for any other purpose other than the purpose set out in the transfer agreement. |
