NORTHERN CAPE PROVINCE DEPARTMENT OF ROADS AND PUBLIC
NORTHERN CAPE PROVINCE DEPARTMENT OF ROADS AND PUBLIC WORKS DEVOLUTION OF RATES AND TAXES Financial year 2010/11 Quarterly Spending 1
CONTENT 2 1. Introduction 2. Budget allocation 3. Spending 2009/10 4. Spending Quarter 1 5. Projections 6. Monitoring 7. Reporting 8. Challenges
INTRODUCTION The devolution of property rates fund grant was in introduced 2008/2009 to ensure that provinces take over the responsibility of paying property rates on properties previously administered by National Government. To enable provincial accounting officers to be fully accountable for their expenditure and payment of provincial property rates 3
BUDGET ALLOCATION Funds were allocated per province based on the determination/calculations submitted by the national Department of Public Works. The determinations/calculations plans assessed against: Ø Property lists extracted from the national department's assets register of properties which were paid during 2005/06 financial year. Ø Calculations based on the 2005/06 financial year's 2009/10 2010/11 2011/12 expenditure R’ 000 DORA Allocation 4 26 998 R’ 000 29 698 R’ 000 31 480 2012/13 R’ 000 33 054
SPENDING 5
SPENDING 2009/10 The department has spent 99% of its allocation in the 2009/10 financial year. The additional R 10 million received during the adjustment budget assisted the province pay all municipalities except Except the of R 222 000 -00 is payable to Thembelihle Municipality. 6
SPENDING QUARTER 1 The function was devolving to the province as from the 2008/09 financial year. The amount allocated was R 24 million while the amount that was needed was R 28, 8 million resulting in a shortfall of R 4, 7 million. Apr – Sept Oct 2010 Nov 2010 Dec 2010 Spending Projection 7 R 0 22 273 Reasons for delay in spending All the municipalities delay with the submission of the following information; Schedule of rates accounts The invoices for 2010/11 Document with gazette tariffs Confirmation of bank details 7, 422
PROJECTED SHORTFALL 2010/11 2011/12 R’ 000 DORA Allocation 29 698 31 480 33 054 Projected Spending @12% 39 600 45 540 51 005 9 902 14 060 17 950 escalation Shortfall 8
MONITORING No funding was received to accommodate the posts to perform this function. Department had to budget for: • Assistant Director • Senior Administration Officer • Administration Officer 9
REPORTING STRUCTURES 10 • Monthly spending reports are submitted to National Public Works. • Only capacitated Municipalities submit monthly statements reflecting payments received.
CHALLENGES There are properties where the land still belongs to the municipality while the buildings belong to government. Once these properties is vested the arrear and the recurrent cost for rates and taxes need to be paid. The client departments must budget for rates and taxes for all new infrastructure developments. Properties that was transferred from the previous NW province that must also be vested. Due to this under allocation municipalities is charging interest on arrear accounts 11
THANK YOU 12
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