1
Department of Transport and Public Works
07 May 20010
PRESENTATION TO THE SELECT COMMITTEE ON APPROPRIATIONS (SCOA) ON DEVOLUTION OF PROPERTY RATE FUNDS GRANT
MAY 2010
MEC ROBIN CARLISLE
2
Department of Transport and Public Works
07 May 20010
Data trends
Capacity
Under-spending on Property Rates
PURPOSE
To inform SCOA on:
Reporting
3
Department of Transport and Public Works
07 May 20010
BACKGROUND
PGWC took responsibility for payment of Municipal Property Rates accounts as from 01 April 2008.
This function previously vested with the National Department of Public Works.
During 2008/09 a total of 1881 accounts payable to the value of R184 690 167 were received from municipalities, but only R147 092 538 (Budget of R147 127 000) was paid resulting in a shortfall of R37 563 167
4
Department of Transport and Public Works
07 May 20010
08/09 09/10
R’000 R’000
Budget:
Main 147 127 164 865
Adjustment: 2008/09 Shortfall
2009/10 Shortfall
37 563
66 403
147 127 268 831
Payable:
Paid 147 092 250 285
Accrued 37 598 6 500
(Shortfall) / Surplus (37 563) 12 046
DATA TRENDS
The Property Rates Grant is in its 3rd year of Implementation and the data trends will be developed over time.
PGWC is currently in the process of acquiring additional sites for health and educational purposes which will result in additional property rates expenditure.
5
Department of Transport and Public Works
07 May 20010
No funding was transferred to create the additional administrative capacity to manage the devolved property rates payments. Currently the function is performed by 2 permanent staff members and 4 contract personnel.
OFFICIALS LEVEL FUNCTIONS PERFORMED
Manager 12 • Budget and Personnel Matters
•Financial and other reports
•High level enquiries (MEC, AG, PT, etc)
• Strategic Interventions with municipalities and other stakeholders.
1 x Verifier Contract (PSA) • Check and verify correctness of payments.
• Verify and certify payments on system
• Collate and verify production and other statistical detail
4 x Administrative Officials
1x Permanent staff
3 x Contract (PSA)
• Process monthly payments i.r.o property rates accounts on iE-Works
CAPACITY
6
Department of Transport and Public Works
07 May 20010
UNDER-SPENDING
Root cause Risks Mitigating
Late submission of accounts from CoCT due to process of splitting rates and utility accounts
Late payments of accounts, accrual of interest and potential under spending
Additional hours work to avert potential late payments and under spending. Monthly meetings with CoCT on outstanding accounts.
2009/10 accounts received after financial closure.
Potential under spending, and under provision for 2010/11 allocation.
Regular follow-up procedures with municipalities on outstanding accounts. Liaise timeously with PT and NDPW on potential allocation shortfall
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 role-players to ascertain status of transfer.