PROVINCIAL ROLL-OVER PROCESSMANAGEMENT ACCOUNTING FORUM

31 May 2013

Presented by: ZSS ZONYANE

BACKGROUND

• Unspent provincial allocations within municipalities triggered the provincial process.

• Presentations of the initiative were made to the 2011 and 2012 CFO fora to raise awareness.

• Customisation of section 20 of 2012 DoRA for the purpose of implementing the process of roll-over applications for unspent provincial conditional grants.

• See section 10 of the Western Cape Appropriation Act, Act 2 of 2013 (gazette 6992 published on 4 May 2012) and the subsequent provincial Appropriation Acts.

PRELIMINARY ENGAGEMENTS AND PROCESS

• Engaged with NT in June 2012 and with NT and transferring provincial departments in May 2013.

• Consensus was reached by these stakeholders on the process to be followed.

• Paragraph 7 of the MFMA Circular No 67 will be customised for provincial allocations, refer to pages 15 – 18 of the Circular.

• PT circular will be issued during the first week of June 2013.

• Principles for the provincial roll-over process will be the same as NT’s process.

IMPLEMENTATION• One application letter for national and provincial

allocations (divided into 2 sections).• Provincial Departments to provide consent, in writing,

whether the unspent provincial grants can be rolled over.

• Unspent conditional allocations can be rolled over only once.

• Provincial departments to share quarterly reports of provincial grants with Provincial Treasury.

• The provincial process will be refined during the 2013/14 financial year, 2013 process is a test.

• Challenge on off-setting of unspent conditional allocations to municipalities, no equitable share from the province.

Thank you