1. PRESENTATION TO THE SELECT COMMITTEE ON APPROPRIATIONS (SCOA) ON DEVOLUTION OF PROPERTY RATE FUNDS GRANT
12 OCTOBER 2010
Mr Joey Pillay

2. Municipal Rates SCOA Presentation – 12 October 2010
To inform SCOA on progress made on the Devolution of Property Rates Grant since May 2010
Expenditure of 2010/11 Grant allocation
Unquantified financial risks
Challenges
Reporting

3. Municipal Rates SCOA Presentation – 12 October
Expenditure of 2010/11 Grant Allocation
R’000
Budget:
Main
181,351
Adjustment: Roll over (2009/10)-approved
18,579
Projected Shortfall 2010/11
64,531
Total requirement 2010/11
264,462
Payable:
Paid to date 30/09/2010
199,930
Captured on iE-Works but not yet disbursed
48,437
Accruals : Invoices not yet received
16,095
Total projected expenditure 2010/11: 3

4. Municipal Rates SCOA Presentation – 12 October 2010
Unquantified Financial Risks
Properties not invoiced by Municipalities, but owned by WCPG
WCPG properties recently improved with infrastructure but not billed accordingly
Properties being acquired for health and educational purposes
Rates payable in accordance with lease agreement
Embarking on a project to ensure completeness of asset register, which could effect the rates liability

5. Municipal Rates SCOA Presentation – 12 October 2010
CHALLENGES
Challenges
Risks
Mitigating
Not all municipal accounts not split between rates and services
Rate payments are allocated to older services debt, resulting in arrears on property rates accounts.
Regular follow-up with municipalities to ensure correct allocation and reconciliation.
Municipal accounting system reflect incorrect billing address
Arrear on rates accounts as a result of none or late receipt of accounts
Active engagement with user departments and municipalities to ensure correct billing address details.
Delays in finalisation of transfer of new sites for Education and Health purposes.
Potential under spending, and under provision for 2010/11 allocation.
Timely follow-up with various municipalities to ascertain status of transfer. Dedicated person allocated to this task. 5

6. Municipal Rates SCOA Presentation – 12 October 2010
Unquantified Financial Risks
Properties not invoiced by Municipalities, but owned by WCPG
WCPG properties recently improved with infrastructure but not billed accordingly
Properties being acquired for health and educational purposes
Rates payable in accordance with lease agreement
Embarking on a project to ensure completeness of asset register, which could effect the rates liability