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INTRODUCTION Note: The financial year referred to is the national financial year (April to March), which is more closely aligned with the municipal financial year (July to June) than calendar year inflation. The allocation of grants will be set out in this bill and municipalities must align their budgets with the figures published there. In terms of allocations in the last year (fiscal year 2021/22), it is proposed that municipalities conservatively limit allocations to indicative figures as proposed in the Revenue Sharing Act 2019 for 2021/22. For those municipalities that did not submit funded adjustment budgets by November 15, 2019, the December 2019 local government fair share tranche was withheld because the MFMA requires the municipality to submit a funded budget. If a municipality also enters into a contract with a system supplier for the maintenance of the purchased system, which will impose financial obligations on the municipality beyond the three years covered by the MTREF budget, then the provisions of § 33 of the MFMA must be complied with. Sanctions, including termination of the SLA in case of persistent non-compliance, should be imposed if the agreed milestones are not met by the system supplier. Likewise, if a system supplier has delivered the services agreed in the SLA, the municipality must pay all monies owed to the system supplier within 30 days of receipt of the relevant invoice or statement in accordance with the requirements of section 65(2)(e) of the MFMA. In the meantime, Category B and C municipalities that have not purchased investment, loan or performance management modules must manually prepare and submit their quarterly Investment Monitoring and Loan Monitoring data strings to the Local Government Portal. One of the contributing factors was that there were errors in the links in the Assets and Liabilities segment entry on the Local Government Database. Section 75A of the MSA gives municipalities the power to "levy and recover fees, charges or rates in relation to any function or service of the municipality". The municipalities must also adopt and implement a rate policy on the collection of fees for municipal services in accordance with Section 74 of the System Act. Furthermore, Section 9 of the MFPFA requires that a municipality must comply with processes in Section 75A, subsection of the System Act. 2, 3 and 4, when charging a supplement. In the process, the Minister of Finance determines the norms and standards that the municipalities must comply with when exercising their powers according to section 75A of the System Act. Approval of supplements is done by the municipality in accordance with Section 75A of the System Act, but subject to the norms and standards set by the Minister of Finance in accordance with the MFPFA. If a municipality decides to charge a surcharge, there is however an approval by the municipal council in accordance with Section 75A of the Municipal Systems Act, which gives the municipalities the power to charge and recover fees, charges or rates for any function or service in the municipality. The collective tariff must be approved by the municipal council and published for public comment in terms of section 75A of the Municipal Systems Act (MSA). It must also be subject to the budgetary processes set out in terms of the MFMA. The absence of norms and standards does not prevent municipalities from including surcharges in their rates as the power to impose a surcharge is given in the Municipal Systems Act. However, the final tariff published for public comment in terms of MSA and MFMA must include the surcharge if the municipality has chosen to levy it and is approved by the municipal council. Accountable officers are reminded of their responsibility in terms of section 62(1)(a) of the MFMA to use the resources of the municipality effectively, efficiently and economically. Failure to do so will result in the commission of an act of financial misappropriation by the accounting officer, which will trigger the implementation of chapter 15 of the MFMA, read with the Municipal Regulations on Financial Conduct Procedures and Criminal Procedures, promulgated on May 30, 2014. The salary and wages operation is still from July 2, 01 to 301 Collective Agreement. , municipalities must therefore budget for the costs of their employees in accordance with the multi-year wage agreement, and also ensure that the agreement is implemented and implemented correctly according to the clauses of the agreement. Any overpayment to councilors in contravention of the ceilings published by the Minister of Cooperative Governance and Traditional Affairs will be irregular expenditure within the meaning of section 167 of the MFMA and must be recovered from the councilor(s) concerned. CHART 12, paragraph .07 defines inventory as follows:. a) in the form of material or supplies to be consumed in the production process,. According to this definition, water must be treated as a stock and must be budgeted and accounted for accordingly. Importantly, trade discounts, rebates and other similar items are deducted to determine the cost of purchase. Substantial changes to the A1 schedule were required to accommodate this approach to account for water under stock. Municipalities incorrectly use the bad debt line item written off under the Item expenditure segment when budgeting for debt valuation. It must be emphasized that loss of receivables is not the same as write-down of debt. Debt write-down is the provision made by the municipality for non-payment, while bad debt is the irrecoverable debt that has been written off during the financial year as approved by the Council per The municipalities are therefore advised to use write-downs under item gains and losses when writing down debt. It provides a breakdown for the different categories that can be impaired, for example trade and other receivables from barter transactions: water. Masilonyana LM and Lejweleputswa DM entered into a memorandum of understanding in which it was agreed that the district municipality would implement the electrification project on behalf of the local municipality with the assistance of the Municipal Infrastructure Support Agent (MISA) to verify the work done. Under section 21(2)(a) of the DoRA 2019, the National Treasury may, in consultation with the appropriate transfer officer, receiving officer and provincial treasury, convert any part of an award listed in Part B of Schedule 5 to one listed in Part B of Schedule 6 if it is satisfied that the conversion will prevent underspending or improve the level of service provision in relation to the award in question. or convert any part of the allocation set out in Part B of Schedule 6 to that set out in Part B of Schedule 5. The 2019/20 NDPG 5B allocations for West Rand DM and Emfuleni LM will be converted from Part B of Schedule 5 to Part B of Schedule 6. The allocation is made through the Municipal Emergency Housing Grant (MEHG) for the emergency relief to finance the temporary shelters after various disaster incidents, namely fire and heavy rain that caused damage and affected house owners. Funding for the MEHG remains unallocated in the Revenue Sharing Act, it is only allocated when disaster declarations are made. According to Section 16(2) of the 2019 DoRA, for the purpose of correcting an error or omission in an award or framework that has been published, the National Treasury must, on its initiative and after consultation with the relevant transfer officer, amend the affected award or framework by notice in the Government Gazette. Magareng, Emthanjeni and Prince Albert local municipalities in the Northern Cape and Western Cape provinces, respectively, had their 2019/20 MIG incorrectly allocated in the Section 16 gazette. The MIG allocation for Prince Albert LM did not take into account the final sports allocation of R3.6 million, which was allocated to Magareng (R2 million) and Emthanjeni (R1.6 million) local municipalities. I NVOICE V ERIFICATION AGAINST CONDITIONAL GRANT EXPENDITURE / C OST REIMBURSEMENT S CHEDULE A1 VERSION TO BE USED FOR THE 2020/21 MTREF A SSISTANCE WITH THE COMPILATION OF BUDGETS V ERIFICATION PROCESS AND PERIOD OF 2020/21 MTREF BUDGETS S UBMITTING BUDGET DOCUMENTATION AND SCHEDULES FOR 2020/21 MTREF E XPECTED SUBMISSIONS FOR 2020/21 MTREF R ETIREMENT OF THE B UDGET REFORM RETURNS (A PPENDIX B) P UBLICATIONS FROM THE M SCOA CLASSIFICATION FRAMEWORK P UBLICATION OF BUDGETS ON MUNICIPAL WEBSITESTHE SOUTH AFRICAN ECONOMY AND INFLATION TARGETS
KEY FOCUS AREAS FOR THE 2020/21 BUDGET PROCESS
THE REVENUE BUDGET
FUNDING CHOICES AND BUDGETING ISSUES
CONDITIONAL GRANT TRANSFERS TO MUNICIPALITIES
N ON - COMPLIANCE OF IN YEAR MONITORING
S TOPPING AND REALLOCATION IN TERMS OF THE D IVISION OF R EVENUE A CT
PREPARATION OF MUNICIPAL BUDGETS FOR 2020/21 MTREF
BUDGET PROCESS AND SUBMISSIONS FOR THE 2020/21 MTREF
