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Division of Revenue Act, 2020 (Act No. 4 of 2020)

Chapter 4 : Matters relating to all Allocations

27. Preparations for 2021/22 financial year and 2022/23 financial year

 

(1)

(a) A category C municipality that receives a conditional allocation in terms of this Act must, using the indicative conditional allocations to that municipality for the 2021/22 financial year and the 2022/23 financial year as set out in Column B of the Schedules to this Act, by 2 October 2020—
(i) agree on the provisional allocations and the projects to be funded from those allocations in the 2021/22 financial year and the 2022/23 financial year with each category B municipality within the category C municipality’s area of jurisdiction; and
(ii) submit to the transferring officer—
(aa) the provisional allocations referred to in subparagraph (i); and
(bb) the projects referred to in subparagraph (i), listed per municipality.
(b) If a category C municipality and a category B municipality cannot agree on the allocations and projects referred to in paragraph (a), the category C municipality must request the relevant transferring officer to facilitate agreement.
(c) The transferring officer must take all necessary steps to facilitate agreement as soon as possible, but no later than 60 days after receiving a request referred to in paragraph (b).
(d) Any proposed amendment or adjustment of the allocations that is intended to be published in terms of section 30(3)(b) must be agreed with the relevant category B municipality, the transferring officer and the National Treasury, before publication and the submission of the allocations referred to in paragraph (a)(ii).
(e) If agreement is not reached between the category C municipality and the category B municipality on the provisional allocations and projects referred to in paragraph (a) before 2 October 2020, the National Treasury, after consultation with the relevant provincial treasury, must determine the provisional allocations and provide those provisional allocations to the affected municipalities and the transferring officer.

(f)

(i) The transferring officer must submit the final allocations, based on the provisional allocations referred to in paragraphs (a)(i) and (ii) and (e), to the National Treasury by 30 November 2020.
(ii) If the transferring officer fails to submit the allocations referred to in subparagraph (i) by 30 November 2020, the National Treasury may determine the appropriate allocations, taking into consideration the indicative allocations for the 2021/22 financial year.

 

(2)

(a) The transferring officer of a conditional allocation, using the indicative conditional allocations for the 2021/22 financial year and the 2022/23 financial year, as set out in Column B of the affected Schedules to this Act, must, by 28 September 2020, submit to the National Treasury—
(i) the provisional allocations to each province or municipality in respect of new conditional allocations to be made in the 2021/22 financial year;
(ii) any amendments to the indicative allocations for each province or municipality set out in Column B of the affected Schedules in respect of existing conditional allocations;
(iii) the draft frameworks for the allocations referred to in subparagraphs (i) and (ii); and
(iv) electronic copies of any guidelines, business plan templates and other documents referred to in the draft frameworks referred to in subparagraph (iii).
(b) A transferring officer must consult the accounting officer of a national or provincial department, other than the transferring or receiving officer, on a duty in the draft framework, before submission to the National Treasury in terms of paragraph (a).
(c) When a document, referred to in a draft framework, that is submitted in terms of paragraph (a)(iii), is amended, the transferring officer must immediately provide the National Treasury and each receiving officer with electronic copies of the revised document.
(d) The National Treasury must approve any proposed amendment or adjustment for the 2021/22 financial year of the allocation criteria of an existing conditional allocation before the submission of the provisional allocations and draft frameworks.
(e) The transferring officer must, under his or her signature, submit to the National Treasury, by 30 November 2020, the final allocations and frameworks based on the provisional allocations and frameworks.
(f) If the transferring officer fails to comply with paragraph (a) or (e), the National Treasury may determine the appropriate draft or final allocations and frameworks, taking into consideration the indicative allocations for the 2021/22 financial year.

(g)

(i) The National Treasury may amend final allocations and frameworks in order to ensure equitable and stable allocations and fair and consistent conditions.
(ii) The National Treasury must give notice, in writing, to the transferring officer of the intention to amend allocations and frameworks and invite the transferring officer to submit written comments within seven days after the date of the notification.
(h) The draft and final allocations and frameworks must be submitted in the format determined by the National Treasury.

 

(3) The National Treasury may instruct transferring officers, accounting officers of the provincial treasuries and receiving officers to submit to it such plans and information for any conditional allocation, as it may determine, at specified dates before the start of the 2021/22 financial year.

 

(4)

(a) For purposes of the Education Infrastructure Grant or Health Facility Revitalisation Grant in the 2021/22 financial year, the receiving officer of the relevant provincial department must, in the format and on the date determined by the National Treasury, submit to the transferring officer, the relevant provincial treasury and the National Treasury—
(i) a user asset management plan for all infrastructure programmes for a period of at least 10 years;
(ii) an infrastructure programme management plan, including a construction procurement strategy for infrastructure programmes and projects envisaged to commence within the period for the medium term expenditure framework; and
(iii) a document that outlines how the infrastructure delivery management system must be implemented in the province and is approved by the Executive Council of the province before or after the commencement of this Act.
(b) The receiving officer of the relevant provincial department must review the document, referred to in paragraph (a)(iii), and if any substantive change is made to the document during the 2020/21 financial year, the amended document must be approved by the Executive Council of the province before submission to the National Treasury within 14 days after such approval.

 

(5)

(a) Any category B municipality may apply to qualify for the Integrated Urban Development Grant, by submitting an application to the Department of Cooperative Governance by 24 July 2020.
(b) The Department of Cooperative Governance must determine the form of the application, including the minimum qualifying conditions.
(c) The Department of Cooperative Governance must submit, by 2 October 2020, to the National Treasury for approval, a list of any proposed additional qualifying municipalities and any municipalities that have failed to meet the qualifying conditions to continue to qualify for approval.
(d) A municipality that is informed by the Department of Cooperative Governance that it will qualify for the Integrated Urban Development Grant, must submit to the National Treasury—
(i) by 26 March 2021, a first draft of its three-year capital programme and the 10-year Capital Expenditure Framework to the Department of Cooperative Governance; and
(ii) by 31 May 2021, the final versions of its three-year capital programme and the 10-year Capital Expenditure Framework, which must be evaluated by the Department of Cooperative Governance after consultation with relevant stakeholders.