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Division of Revenue Act, 2023 (Act No. 5 of 2023)

Chapter 3 : Conditional Allocations to Provinces and Municipalities

Part 2 : Duties of accounting officers in respect of Schedule 4 to 7 allocations

10. Duties of transferring officer in respect of Schedule 5 or 6 allocations

 

(1) The transferring officer of a Schedule 5 or 6 allocation must—
(a) not later than 14 days after this Act takes effect, certify to the National Treasury that—
(i) any monitoring or system that is used, is compatible and integrated with and does not duplicate other relevant national, provincial and local systems; and
(ii) any plans required in terms of the framework of a Schedule 5 allocation regarding the use of the allocation by—
(aa) a province, have been approved before the start of the financial year; or
(bb) a municipality, shall be approved before the start of the financial year;
(b) in respect of Schedule 5 allocations—
(i) transfer funds only after receipt of all information required to be submitted by the receiving officer in terms of this Act and after submission of all relevant information to the National Treasury;
(ii) transfer funds in accordance with the payment schedule determined in terms of section 22, unless allocations are withheld or stopped in terms of section 17 or 18; and
(iii) deposit funds only into the primary bank account of the relevant province or municipality; and (c) comply with the applicable framework.

 

(2) The transferring officer must submit all relevant information and documentation referred to in subsection (1)(a) to the National Treasury within 14 days after this Act takes effect.

 

(3) A transferring officer, who has not complied with subsection (1), must transfer the allocation in the manner instructed by the National Treasury, which instruction may include transferring the allocation as an unconditional allocation.

 

(4) Before making the first transfer of any allocation in terms of subsection (1)(b), the transferring officer must ensure that the banking details of the relevant province or municipality are as contained in the notice issued by the National Treasury in terms of section 30(1).

 

(5) The transferring officer of a Schedule 5 allocation to a municipality is responsible for monitoring financial and non-financial performance information on programmes funded by the allocation.

 

(6)

(a) The transferring officer of a Schedule 5 or 6 allocation must, as part of the reporting envisaged in section 40(4)(c) of the Public Finance Management Act, but subject to paragraph (b), submit information, in the format determined by the National Treasury, for the month in question, and for the 2023/24 financial year up to the end of that month, on—
(i) the amount of funds transferred to a province or municipality;
(ii) the amount of funds for any province or municipality withheld or stopped in terms of section 17 or 18, the reasons for the withholding or stopping and the steps taken by the transferring officer and the receiving officer to deal with the matters or causes that necessitated the withholding or stopping of the payment;
(iii) the actual expenditure incurred by the province or municipality in respect of a Schedule 5 allocation;
(iv) the actual expenditure incurred by the transferring officer in respect of a Schedule 6 allocation;
(v) any matter or information that may be required by the applicable framework for the particular allocation; and
(vi) such other matters as the National Treasury may determine.
(b) For purposes of the application of paragraph (a) to Part B of Schedule 5, the period of 15 days envisaged in section 40(4)(c) of the Public Finance Management Act must be construed to mean a period of 20 days.

 

(7) A transferring officer must submit to the National Treasury—
(a) a monthly provincial report on infrastructure expenditure partially or fully funded by the Health Facility Revitalisation Grant, National Health Insurance Indirect Grant, School Infrastructure Backlogs Grant or Maths, Science and Technology Grant, within 22 days after the end of each month, in the format determined by the National Treasury; and
(b) a quarterly performance report on all programmes partially or fully funded by a Schedule 5 or 6 allocation within 45 days after the end of each quarter, in accordance with the applicable framework.

 

(8) The transferring officer must evaluate the performance of all programmes partially or fully funded by a Schedule 5 or 6 allocation and submit such evaluations to the National Treasury within four months after the end of the 2023/24 financial year applicable to a provincial department or a municipality, as the case may be.

 

(9) The transferring officer of the Human Settlements Development Grant may only transfer the Grant to a province after the relevant receiving officer has complied with section 12(6)(a) and (b).

 

(10) A framework may impose a duty on the accounting officer of a national or provincial department, other than the transferring officer or receiving officer, which contributes to achieving the purpose of the allocation and the accounting officer must comply with the duty.