Act No. 10 of 2014: Division of Revenue Act, 2014.
ACT To provide for the equitable division of revenue raised nationally among the national, provincial and local spheres of government for the 2014/15 financial year, the determination of each province's equitable share and allocations to provinces, local government and municipalities from national government's share and the responsibilities of all three spheres pursuant to such division and allocations; and to provide for matters connected therewith.
''receiving provincial department'' in relation to a Schedule 4, 5 or 7 allocation transferred to a province, means the provincial department which receives that allocation or a portion thereof for expenditure via an appropriation from its Provincial Revenue Fund; ''School Infrastructure Backlogs Grant'' means the School Infrastructure Backlogs Grant referred to in Part A of Schedule 6; ''Technical Secondary Schools Recapitalisation Grant'' means the Technical Secondary Schools Recapitalisation Grant referred to in Part A of Schedule 5; ''this Act'' includes any framework or allocation published, or any regulation made, in terms of this Act; ''transferring national officer'' means the accounting officer of a national department that transfers a Schedule 4, 5 or 7 allocation to a province or municipality or spends a Schedule 6 allocation on behalf of a province or municipality; ''Urban Settlements Development Grant'' means the Urban Settlements Development Grant referred to in Part B of Schedule 4.
financial year and the 2016/17 financial year, and which is subject to the provisions of the annual Division of RevenueActs for those financial years, is set out in Column B of Schedule 1.
4. (1) Each province's equitable share of the provincial share of revenue raised nationally in respect of the 2014/15 financial year is set out in ColumnA of Schedule 2.
referred to in subsection (1) to the corporation for public deposits account of the province in accordance with the payment schedule determined in terms of section 23.
5. (1) Each municipality's share of local government's equitable share of revenue raised nationally in respect of the 2014/15 financial year is set out in Column A of Schedule 3.
to in subsection (1) to the primary bank account of the municipality in three transfers on 4 July 2014, 28 November 2014 and 20 March 2015, in accordance with the payment schedule determined in terms of section 23.
(b) provinces or municipalities, as a conditional or an unconditional allocation.
provinces, that may be released to provinces to fund immediate disaster response.
(2) An envisaged division of conditional allocations to provinces from the national government's share of revenue anticipated to be raised nationally for the 2015/16 financial year and the 2016/17 financial year, which is subject to the annual Division of Revenue Acts for those years, is set out in Column B of the Schedules referred to in subsection (1).
(d) Part B of Schedule 7, specifying funds that are not allocated to specific municipalities, that may be released to municipalities to fund immediate disaster response.
Department of Transport, allocations for specific transport contracts for capital projects from the envisaged conditional allocations for the Public Transport Infrastructure Grant listed in Column B of Part B of Schedule 5, may not be altered downwards in the Division of Revenue Acts for the 2015/16 financial year and 2016/17 financial year.
(ii) consider any comment so submitted by the officer.
Development Grant to a recipient metropolitan municipality, if the municipality has submitted a built environment performance plan in terms of section 14(1).
(b) in respect of a municipality, within seven months after the end of the 2014/15 financial year of the municipality.
(b) must consider that built environment performance plan when monitoring and evaluating the performance of the municipality and assessing envisaged plans and allocations for the municipality.
(c) publish by notice in the Gazette the allocations and indicative allocations within 14 days after submission to the National Treasury.
(b) in respect of a municipality, after the end of the 2014/15 financial year of the municipality.
(c) a province or municipality, submit a quarterly non-financial performance report within 30 days after the end of each quarter to the transferring national officer and the relevant provincial treasury.
by the province and transfers to each municipality.
(c) submit to the transferring national officer, the relevant provincial treasury and the National Treasury any amendment to the list and the reason for the amendment and table the amended list with the provincial Adjustments Appropriation Bill.
(ii) submit the evaluation to the transferring national officer, the relevant provincial treasury and the National Treasury.
(b) money allocated for the Human Settlements Development Grant received from a national department or a province.
zones; and (c) be approved by its municipal council.
receiving officers report on conditional allocations to municipalities on a quarterly basis to facilitate the audit of the allocations for the 2014/15 financial year.
national officer of the Department of Energy; (b) a water board, as defined in section 1 of theWater ServicesAct, 1997 (Act No.
108 of 1997), may receive funds directly from the transferring national officer of the Department of Water Affairs or the Department of Human Settlements.
(i) entering into a payment schedule; and (ii) submitting the payment schedule to the National Treasury for approval.
(f) the receiving officer of a municipality assigned the function must, within one month from the date of the stopping of funds in terms of paragraph (a) confirm to the transferring national officer that the planned expenditure submitted by the receiving officer of the province in terms of section 12(6)(a) will be implemented by the municipality or submit revised planned expenditure.
after 1April 2014, must be implemented in terms of an agreement with the municipality and aligned to the allocations for the municipality in the applicable framework.
National Treasury instructs or approves a request by the transferring national officer in terms of paragraph (a).
20. (1) When a Schedule 4 or 5 allocation or a portion thereof is stopped in terms of section 19(1)(a), (b) or (d), the National Treasury may, after consultation with the transferring national officer and the relevant provincial treasury, determine the portion of the allocation to be reallocated, as the same type of allocation as it was allocated originally, to one or more provinces or municipalities, on condition that the allocation must be spent by the end of the 2014/15 financial year or the 2015/16 financial year.
(2) (a)When a Schedule 4 or 5 allocation, or a portion thereof, is stopped in terms of section 19(1)(c), the National Treasury must, after consultation with the transferring national officer and the relevant provincial treasury, determine the portion of the allocation to be reallocated, as the same type of allocation as it was allocated originally, to the affected municipalities, on condition that the allocation must be spent by the end of the 2014/15 financial year or the 2015/16 financial year.
(iii) section 150 of the Municipal Finance Management Act, the relevant transferring national officer to spend an allocation stopped in terms of section 19 on behalf of the relevant municipality.
reallocated funds, after consultation with the national department responsible for local government and with the approval of the National Treasury.
(vii) the Human Settlements Development Grant listed in Part A of Schedule 6 to the Human Settlements Development Grant listed in Part A of Schedule 5.
the notice in terms of subsection (3)(a).
National Revenue Fund in terms of subsection (1), are paid into that Fund by the date determined by the National Treasury.
through its provincial treasury; and (ii) inform the transferring national officer of all processes regarding the request.
23. (1) (a) The National Treasury must, after consultation with the accounting officer of the provincial treasury, determine the payment schedule for the transfer of a province's equitable share allocation.
receiving officer and the relevant provincial treasury with a copy of the approved payment schedule before making the first transfer in terms thereof.
(5) The transfer of a Schedule 4 or 5 allocation to a municipality must accord with the financial year of the municipality.
any amendment to a payment schedule in terms of subsection (1) or (2).
(c) publish a framework for any new Schedule 4, 5, 6 or 7 allocation.
(ii) submit to the transferring national officer— (aa) the provisional allocations referred to in subparagraph (i); and (bb) the projects referred to in subparagraph (i), listed per municipality.
(iii) the draft frameworks for the allocations referred to in subparagraphs (i) and (ii) in the format to be determined by the National Treasury.
(b) Any proposed amendment or adjustment for the 2015/16 financial year of the allocation criteria of an existing conditional allocation must be agreed with the National Treasury before the submission of the provisional allocations and draft frameworks referred to in paragraph (a)(ii) and (iii).
final allocations and frameworks based on the provisional allocations and frameworks referred to in paragraph (a)(i) and (ii) to the National Treasury by 5 December 2014.
(ii) approved concept reports for all projects in the design or construction stage in the 2015/16 financial year.
(ii) an infrastructure programme management plan including at least a construc- tion procurement strategy for infrastructure programmes or projects envis- aged to commence within the period for the medium term expenditure framework.
(c)The National Treasury must notify the transferring national officer and the affected provincial departments which infrastructure programmes and projects it will propose for full or partial funding through the grant in the financial years in question.
in terms of subsection (1), the amount is, with the necessary changes, subject to the applicable framework for the 2014/15 financial year and the other requirements of this Act as if it is an amount of an allocation for the 2014/15 financial year.
(c) If an allocation is stopped in terms of this subsection, the National Treasury may, after consultation with the transferring national officer, determine that a portion of the allocation that will not be spent, be reallocated to one or more municipalities, on condition that the allocation will be spent by the end of the 2014/15 financial year or the 2015/16 financial year.
(vi) the budget of each school and each hospital in a format determined by the National Treasury.
(b) The allocations and budgets referred to in paragraph (a) must be regarded as final when the provincial appropriation Act takes effect.
31. (1) The National Treasury must, within 14 days after this Act takes effect, submit a notice to all transferring national officers containing the details of the primary bank accounts of each province and municipality.
32. The accounting officer of a provincial department or municipality that receives funds from a public entity as a grant, sponsorship or donation must disclose in its financial statements the purpose and amount thereof.
33. (1) An organ of state involved in an intergovernmental dispute regarding any provision of this Act or any division of revenue matter or allocation must, before approaching a court to resolve such dispute, make every effort to settle the dispute with the other organ of state concerned, including exhausting all mechanisms provided for the settlement of disputes in relevant legislation.
35. (1) Despite anything to the contrary in any other legislation, any wilful or negligent non-compliance with a provision of this Act constitutes financial misconduct.
(2) Section 84 of the Public Finance ManagementAct or section 171 of the Municipal Finance ManagementAct, as the case may be, applies in respect of financial misconduct envisaged in subsection (1).
37. (1) The Minister may, if good grounds exist, approve a departure from a provision of a framework, a regulation made under section 38 or a condition imposed in terms of this Act.
financial year; and (b) any obligation set out in that Act, the execution of which is still outstanding.
40. This Act is called the Division of Revenue Act, 2014, and takes effect on 1 April 2014 or the date of publication in the Gazette, whichever is the later date.