1. NORTHERN CAPE PROVINCE DEPARTMENT OF ROADS AND PUBLIC WORKS
DEVOLUTION OF RATES AND TAXES
FINANCIAL YEAR 09/10

2. CONTENT Projections Introduction Budget allocation Spending 2009/10
Monitoring
Reporting
Challenges

3. 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

4. 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:
Property lists extracted from the national department's assets register of properties which were paid during 2005/06 financial year.
Calculations based on the 2005/06 financial year's expenditure
2008/09
R’000
2009/10
2010/11
2011/12
DORA Allocation
24 094
26 998
29 698
31 480

5. Spending 2009/10 Amount R’000 Total amount Allocated as per DORA
26 998
Add: Adjustment budget allocation
10 300
Total available for 2009/10
37 298
Less: Shortfall paid of 2008/09 financial year
4 768
Sub-Total for 2009/10
32 532
Less amount paid during the 2009/10 financial year
32 310
Total amount payable for 2009/10 to municipalities
220
Arrears/interest payable
667
Total amount outstanding at 31 March 2010
887

6. Spending 2009/10
The department has spent 99% of its allocation in the 2009/10 financial year.
The additional R10 million received during the adjustment budget assisted the province pay all municipalities except
Except the of R is payable to Thembelihle Municipality.

7. Projections

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
Monthly spending reports are submitted to National Public Works.
Only capacitated Municipalities submit monthly statements reflecting payments received.

10. 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