Finance
(1) Are there any funds that are going to be transferred to municipalities in the 2014/15 financial year; if not, why not; if so, (a) to which municipalities, (b) what is the amount and (c) what is the reason;
(2) (a) what criteria were followed when a decision was taken regarding the allocation of such funds and (b) how do you excercise control to ensure effective expenditure thereof ?
[1] Yes, with regards to the Vote, ie Vote 3: Provincial Treasury
[a] The specific municipalities must still be determined. The support will be based on the outcomes of the LGMTEC 3 process (Annual Budget Engagements), Municipal Governance Review & Outlook (MGRO) process and support initiatives indentified during periodic visits to Municipalities. The specific municipalities and amounts, when determined, will be gazetted in a provincial extraordinary gazette.
[b]R6 million.
(c] The funding has been provided for various financial management support initiatives in Municipalities to adress financial management initiaves and/or gaps within the municipal sphere that would contribute to improving financial management and governance in Municiplaities.
[2] [a] Not applicable, as no decision has as yet been taken regarding the allocation of the R6 million to be transferred to municipalities, as provided in the 2014/15 budget.
[b] Oversight and control to ensure effective expenditure will include a requirement for municipalities to submit quarterly financial (expenditure) and non-financial (performance) reports to Provincial Treasury. In addition, the grant support framework will have specific requirements and reporting obligations that would support the expenditure and performance oversight responsibilities of Provincial Treasury.The financial management support grant transfer payments to municipalities in respect of the 2014/15 financial year must still take place.
