PROVINCIAL ROLL-OVER PROCESS

1. PROVINCIAL ROLL-OVER PROCESS MANAGEMENT ACCOUNTING FORUM 31 May 2013 Presented by: ZSS ZONYANE

2. 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.

3. 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.

4. 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.