Conditional Grants and Capital Expenditure (Municipalities)

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Conditional Grants and Capital Expenditure
(Municipalities)
MPUMALANGA PROVINCIAL TREASURY

• Presentation to the Select Committee on Finance
• 4 February 2008

Always Stretching Our Arm, to Accelerate Service
Delivery
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Table of content

• Municipal Infrastructure Grant
• Water Services Operating and Transfer Subsidy
  Grant
• National Electrification Programme Grant
• Local Government Financial Management Grant
• Municipal Systems Improvement Grant
• Public Transport Infrastructure and Systems Grant
• 2010 FIFA World Cup Stadiums Development Grant
• Capacity Constraints
• Monitoring
• Capacity building

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Municipal Infrastructure Grant

• Purpose To supplement capital finance for basic
  municipal infrastructure for poor households,
  micro-enterprises and social institutions
• Transferring Department Department of Provincial
  and Local Government

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Water Services Operating and Transfer Subsidy
Grant

• Purpose To subsidise water schemes owned and/or
  operated by the Department of Water Affairs and
  Forestry or by other agencies on behalf of the
  Department and transfer these to local government
• Transferring Department Department of Water
  Affairs and Forestry

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National Electrification Programme Grant

• Purpose To implement the Programme by providing
  capital subsidies to municipalities to address
  the electrification backlog of permanently
  occupied residential dwellings, the installation
  of bulk infrastructure and rehabilitation and
  refurbishment of electricity infrastructure in
  order to improve quality of supply
• Transferring Department Department of Minerals
  and Energy

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Local Government Financial Management Grant

• Purpose To promote and support reforms in
  financial management by building the capacity in
  municipalities to implement the Municipal Finance
  Management Act
• Transferring Department National Treasury

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Municipal Systems Improvement Grant

• Purpose To assist municipalities in building
  in-house capacity to perform their functions and
  stabilize institutional and governance systems
• Transferring Department Department of Provincial
  and Local Government

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Public Transport Infrastructure and Systems Grant

• Purpose To provide for accelerated planning,
  establishment, construction and improvement of
  new and existing public transport and
  non-motorised transport infrastructure and
  systems
• Transferring Department Department of Transport

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2010 FIFA World Cup Stadiums Development Grant

• Purpose To fund the design and construction of
  new designated stadiums or the design and
  upgrading of designated existing stadiums and
  supporting bulk services infrastructure in the
  World Cup Host Cities
• Transferring Department Department of Sport and
  Recreation

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Capacity constraints
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Monitoring

• The Provincial Treasury is, in terms of the MFMA,
  responsible for oversight and monitoring
• Developed measures to monitor the spending on
  Infrastructure Grants in addition to
  interventions that responsible departments
  implemented
• Spending trends are reported to Technical
  Committees and other structures in the Province
  to identify solutions
• Developed and is in the process of implementing a
  monitoring tool that would enable analysis of
  spending trends in terms of specifically the
  Infrastructure Grant
• Attend all Service Delivery and Budget
  Implementation Plan (SDBIP) development
  discussions in municipalities

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Capacity building

• In order to promote sound financial management,
  training was conducted reporting processes
  emanating from the MFMA
• Municipalities submissions, budgets and annual
  reports were analyzed and gaps identified
• Training provided
• Budget process
• SDBIP
• Mid-year reviews
• Annual reports
• Linking the IDP, Budget, SDBIP and PMS

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The end