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Presented by: Cathy Motsisi Chief Financial Officer

Presentation of the Devolution of Property Rates Grant to the Standing Committee on Appropriations (SCOA) 12 October 2010. Presented by: Cathy Motsisi Chief Financial Officer. BUDGET AND EXPENDITURE.

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Presented by: Cathy Motsisi Chief Financial Officer

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  1. Presentation of the Devolution of Property Rates Grant to the Standing Committee on Appropriations(SCOA)12 October 2010 Presented by: Cathy Motsisi Chief Financial Officer

  2. BUDGET AND EXPENDITURE • Expenditure for Devolution of Property Rates fund to Provinces for the period ended 30 September 2010 is R 862 million, which is equivalent to 79% of the allocated budget. • All provinces received their payments as per schedule and payments were made in full. • The next payment, which will be the final (before the adjusted allocation) will be made in this current month for all provinces.

  3. BUDGET AND EXPENDITURE PER PROVINCE

  4. ACTUAL EXPENDITURE TO MUNICIPALITIESAS AT 31 AUGUST 2010

  5. ADJUSTMENTS ESTIMATES

  6. APPROVED ADJUSTMENTS BUDGET • During the adjustment estimates, an amount of R866 million was requested as a shortfall for the property rates funds, unfortunately only R769 million was allocated. • The request for additional funding was received from the following provinces: • KwaZulu Natal – R 450 mil • Free State – R 186 mil • Gauteng – R 106 mil • Western Cape – R 83 mil • Mpumalanga – R 26 mil • Northern Cape – R 9, 9 mil • North west – R 7, 3 mil

  7. NEW ADJUSTED BUDGET Additional funding received will be transferred to Provinces in December as DPW has to submit revised drawing to National treasury for approval.

  8. Explanations to the Adjustments Estimates allocation • With the exception of Free State and Mpumalanga, all provinces were allocated full amount requested. • Free State requested R 186 million and only R 68 million. The amount allocated was based on the projected over spending on the monthly reports submitted by the province to Treasury, which differs with the request submitted to the department. • Mpumalanga requested R 26 million and only R 13 million was allocated, and the allocation was based on the previous financial year additional funding allocation plus inflationary adjustment.

  9. CHALLENGES

  10. CHALLENGES WITH MUNICIPALITIES • Delay in issuing invoices on properties • Inaccurate billing systems • Inaccurate verification and reconciliation of invoices from other municipalities which delay payments • The impact of the new Property Rates Act • Unreasonable Interest rates charges We are working very close with SALGA to resolve the challenges.

  11. I THANK YOU!

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