Frameworks for Conditional Grants to Municipalities

This annexure provides a brief description for each grant in schedules of the Division of Revenue Bill. The following are key areas considered for each grant:

• Strategic goal and purpose of the grant
• Outcome statements and outputs of the grant
• Priority outcome(s) of government that the grant primarily contributes to
• Conditions of the grant (additional to what is required in the Bill)
• Criteria for allocation between municipalities
• Rationale for funding through a conditional grant
• Past performance
• The projected life of the grant
• MTEF allocations
• The payment schedule
• Responsibilities of transferring national department and receiving municipalities
• Process for approval of business plans for the next financial year

These documents are published in order to provide more information on each grant to parliament, legislatures, municipal councils, officials in all three spheres of government and the public.

The financial statements and annual reports will report against the Division of Revenue Act, Division of Revenue Amendment Act and their schedules, and the grant frameworks as gazetted in terms of the Act. Such reports must cover both financial and non-financial performance, focusing on the outputs achieved.