Division of Revenue Act

4 No. 26222 GOVERNMENT GAZETTE, 3 1 MARCH 2004 Act No. 5,2004 DIVISION OF REVENUE ACT, 2004 VIII. “municipality” means the same as in section 1 of the Municipal Finance Management Act: IX. “Municipal Structures Act” means the Local Government: Municipal Structures Act, 1998 (Act No. 117 of 1998); X. “Municipal Systems Act” means the Local Government: Municipal Systems 5 Act, 2000 (Act No. 32 of 2000); XI. “next financial year” means the financial year commencing on 1 April 2005 and ending on 31 March 2006; XII. “payment schedule” means a schedule which sets out- ( a ) the amount of each instalment of an equitable share or any other 10 allocation to be transferred financial year; to a province or municipality for the (b) the date on which each such instalment must be paid; and (c) to whom, and to which primary bank account, each such instalment must 15 XIII. “prescribe” means prescribe by regulation in terms of section 33; XIV. “primary bank account”- ( a ) in relation to a province, means a bank account of the provincial Revenue Fund, which the head official of the provincial treasury has certified to the National Treasury as the bank account into which allocations in terms of this Act must be deposited; (bj in relation to a municipality which has only one bank account, 20 (c) means that account; or in relation to a municipality which has more than one bank account, means one of its bank accounts which it has designated primary bank account; as its 25 XV. “Public Finance Management Act” means the Public Finance Management Act, 1999 (Act No. 1 of 1999): XVI. “quarter” means- 30 (a) 1 April to 30 June; ( b ) 1 July to 30 September; (c) 1 October to 31 December; or (d) 1 January to 31 March; XVII. “receiving officer”- (a) in relation to Schedules 4 and 5 allocations transferred to a 35 province, excluding the Provincial Infrastructure Grant, means the accounting officer of the provincial department which is responsible for spending or managing that allocation; or (bj in relation to Schedules 6 and 6A allocations transferred to a municipality, means the municipal accounting municipality, except for that portion of the Municipal Infrastructure Grant funds in terms September 2003 and spent by the accounting officer of the national department for local government directly on behalf of the munici- pality; of section 11(7), committed before 30 officer of that 40 45 Treasury; XVIII. “transferring national officer” means the accounting officer of a national department which transfers to a province or municipality Schedule 4, 5, 6 or 6A allocations, but excludes the accounting officer of the National Treasury in respect of an allocation listed in those Schedules and which is on the vote of the National XIX. “transferring provincial officer” means the accounting officer of a 50 provincial department which is responsible for managing a Schedule 5, 6 or 6A allocation for the purpose of transferring it to a municipality in the relevant province. (2) In the event of any inconsistency between a provision of this Act and a provision 55 of the Municipal Finance Management Act that has taken effect, the provision of the Municipal Finance Management Act is, to the extent of the inconsistency, suspended until 1 April 2005. ( 3 ) Section 35 of the Public Finance Management Act, section 3 of the Financial and Fiscal Commission Act and section respect of any powers and functions assigned municipality. 9 of the Municipal Systems Act do not apply in 60 in terms of this Act to a province or 6 No. 26222 GOVERNMENT GAZETTE, 3 1 MARCH 2004 Act No. 5,2004 DIVISION OF REVENW ACT, 2004 Objects of Act

2. The objects of this Act are- ( a ) to provide for the equitable division of revenue anticipated to be raised nationally among the three spheres of government; (b) to promote co-operative governance and the principles of intergovernmental 5 (c) relations on budgetary matters; to promote better co-ordination between policy, planning, budget preparation and execution processes; (d) to promote predictability and certainty in respect of all allocations to provincial governments and municipalities and municipalities may plan their budgets over a multi-year period; to promote transparency and equity in all allocations, including in respect of the criteria for their division; in order that such governments 10 (e) (fl to promote accountability for the use of public resources by ensuring that all transfers are reflected on the budgets of benefiting provincial governments 15 and municipalities; and (8) to ensure that legal proceedings between organs of state in the three spheres of government are avoided as far as is possible. CHAPTER 2 ALLOCATIONS SHARE EQUITABLE Equitable division of revenue anticipated to be raised nationally among spheres of government 3. (1) Revenue anticipated to be raised nationally in respect of the budget year must be divided among the national, provincial and local spheres of government for their shares equitable A of Schedule 1. Column as set out in 20 25 (2) An envisaged division of revenue anticipated to be raised in respect of the next financial year and the 2006/07 financial year, and which will be subject to the provisions of the annual Division of Revenue Act in respect of those financial years, is set out in Column B of Schedule 1. (3) Despite subsection (2), the Minister may, in respect of the next financial year and 30 until the commencement of the annual Division of Revenue Act for that financial year, determine that an amount not exceeding 45 per cent of the envisaged division for the next financial year as set out in Column B of Schedule 1, be transferred as a direct charge against the National Revenue Fund to each province and municipality. division Equitable provinces of provincial among share 35 4. (1) Each province’s equitable share of the provincial share of revenue anticipated to be raised nationally in respect of the budget year is set out in Column A of Schedule 2. to be raised for each province of revenue anticipated (2) An envisaged division nationally in respect of the next financial year and the 2006/07 financial year, and which is subject to the provisions of the annual Division of Revenue Act for those financial 40 years, is set out in Column B of Schedule 2. (3) Subject to section 28(2), each province’s equitable share contemplated in subsection (1) must be transferred to the province in weekly instalments in accordance with a payment schedule determined by the National Treasury, after consultation with the head official of the relevant provincial treasury. The payment schedule must take 45 reasonable account of the monthly spending commitments of provinces, the revenue at the disposal of provinces, and the minimisation of risk and debt servicing costs. (4) Despite subsection ( 3 ) , the Minister may, on such conditions as the Minister may detemune, advance funds to a province in respect of its equitable share contemplated in subsection (l), which have not yet fallen due for transfer in accordance with the payment 50 schedule referred to in subsection (3) in respect of that province. 8 No. 26222 GOVERNMENT GAZETTE, 31 A4ARCH 2004 Act No. 5,2004 DIVISION OF REVENUE ACT, 2004 (5) The advances contemplated in subsection (4) must be set-off against transfers to in terms of the applicable payment the province which would otherwise become due schedule. Equitable division of local government share among municipalities 5. (1) Each municipality’s share of local government’s equitable share of revenue anticipated to be raised nationally in respect of the budget year is set out in Column A of Schedule 3. (2) An envisaged division between municipalities of revenue anticipated to be raised nationally in respect of the next financial and the 2006/07 financial year, and which is subject to the provisions of the annual Division of Revenue Act for those financial years, is set out in Column B of Schedule 3. (3) Subject to subsection (4), each municipality’s equitable share contemplated in subsection (1) must be transferred to the primary bank account of the municipality in quarterly instalments before the end of May, August, November and February in the budget year, in accordance with a payment schedule determined by the National Treasury. (4) If a provincial executive has intervened in a municipality in terms of section 139 of the Constitution, the Minister responsible for concurrence of the Minister, and on such conditions as the Minister may determine, advance funds to a municipality in respect of its equitable share contemplated in subsection (1) which have not fallen due for transfer in accordance with the applicable payment schedule referred to in subsection (3) in respect of that municipality. local government may, with the (5) Any advances in terms of subsection (4) must be set-off against transfers to the of the applicable payment municipality which would otherwise become due in terms schedule. (6) Despite subsection (3), the National Treasury may direct the accounting officer of the national department for local government to delay or withhold the transfer of an instalment on the grounds of a municipality’s serious or persistent material breach of uniform treasury norms and standards. 5 10 15 20 25 (7) Such uniform treasury norms and standards referred to in subsection (6) may 30 include a requirement that a municipality must- ( a ) submit to the Auditor-General, not later than 30 April 2004, any outstanding financial statements in respect of municipal financial years preceding the 2003104 municipal financial year; (b) submit to the National Treasury, by not later than 30 June 2004, its budget for 35 the 2004105 municipal financial year and such other budgetary information as may be required by the National Treasury, including, but not limited to, information on the nature and extent of basic services to be provided for water, sanitation, electricity, and municipal infrastructure, including free basic services, to be provided by that municipality; (c) submit to the Auditor-General and the National Treasury, not later than 30 September 2004, financial statements in respect of the 2003/04 municipal financial year, in a format determined by the National Treasury; (d) submit to the National Treasury, by not later than 20 days after the end of each quarter starting 1 July 2004, information on the implementation of its budget, including information up to the end of that quarter on actual- (i) total revenue collected, borrowings and all allocations received in terms of this Act; and (ii) total spending, including on water, sanitation, electricity, free basic services and municipal infrastructure; (e) in the case of local and district municipalities, co-operate on financial, budget and fiscal matters with other municipalities within the district in which it is located in order to eliminate duplication in the provision of services, reduce of wastage, and ensure sustainable delivery of municipal services in that municipal district.; and (“ make timely payment of all statutory commitments including all taxes, levies, effective and efficient spending for purposes audit fees, medical aid and pension fund commitments. 40 45 50 55 10 No. 26222 GOVERNMENT GAZETTE, 31 MARCH 2004 Act No. 5,2004 DIVISION OF REVENUE ACT, 2004 (8) Payments of the quarterly equitable share instalments referred to in subsection (3), to the accounting officer of a municipality submitting any may be made subject information required in terms of subsection (6) or (7) to the National Treasury, and certifying how the municipality is complying with subsection days of transfer of such (6) or (7), not later than 21 instalment. date the before 5 (9) Despite subsections (6) and (7), the National Treasury may direct that funds be transferred to a municipality, where it- (a) provides a written explanation which the National Treasury determines as reasonable; or (b) is in danger of failing to deliver basic services as a result of such delays or 10 withholding. Shortfalls and excess revenue 6. (1) If actual revenue raised nationally in respect of the budget year falls short of the anticipated revenue set out in Schedule 1, the national government bears the shortfall. (2) If actual revenue raised nationally in respect of the budget year is in excess of the 15 anticipated revenue set out in Schedule 1, the excess accrues to the national government and forms part of its equitable share. (3) Despite subsection (2), the national government may, by means of an adjustments budget or any other appropriation legislation, sections 4 and 5 , and the allocations contemplated in Chapter 3, make in the budget year 20 further allocations to provinces and municipalities from its equitable share of nationally raised revenue or contingency reserve. and additional to the allocations in CHAPTER 3 OTHER ALLOCATIONS TO PROVINCES AND MUNICIPALITIES Other allocations 25 7. (1) Other allocations to provinces in respect of the budget year from the national government’s share of revenue anticipated to be raised nationally are set out in Column A of the following Schedules: ( a ) Schedule 4, which contains allocations to provinces for general and nationally functions; assigned 30 (b) Schedule 5, which contains specific-purpose allocations to provinces. (2) An envisaged division of allocations to provinces from the national government’s share of revenue anticipated to be raised nationally, for the next financial year and the 2006/07 financial year, which is subject to the annual Division of Revenue Act for those years is set out in Column B of the Schedules referred to in subsection (1). 35 (3) Despite subsection (2), the Minister may, in respect of the next financial year and until the commencement of the Division of Revenue Act for that financial year, determine that an amount not exceeding 45 per cent of the envisaged division of the allocation for the next financial year, as set out in Column B of the Schedules referred to in subsection (1). be transferred to a province as a direct charge against the National 40 Revenue Fund. (4) Other allocations to local government in respect of the budget year from the national government’s share of revenue anticipated to be raised nationally are set out in Column A of the following Schedules: (a) Schedules 6 and 6A, which contain specific-purpose allocations to local 45 government; and (b) Schedule 7, which contains allocations-in-kind to municipalities for desig- nated programmes. (5) An envisaged division of allocations to local government from the national government’s share of revenue anticipated to be raised nationally for the next financial 50 year and the 2006/07 financial year, which is subject to the annual Division of Re,venue Act for those years, is set out in Column B of the Schedules referred to in subsection (4). 12 No. 26222 GAZETTE, GOVERNMENT 31 MARCH 2004 Act No. 5, 2004 DIVISION OF REVENUE ACT, 2004 (6) The Minister must, not later than 1 April 2004, publish in the Gazette required in terms of section 24( l), the share of each municipality in respect of the local government allocations referred to in subsections (4) and ( 5 ) . (7) Despite subsection (5), the Minister may, in respect of the next financial year and for that financial year, until the commencement determine that an amount not exceeding 45 per cent of the envisaged division of the allocation for the next financial year, as set out in Column B of the Schedules referred to in subsection (4), be transferred to a municipality as a direct charge against the National Revenue Fund. of Revenue Act of the Division Transfers to entities 5 10 8. (1) Where a national or provincial organ of state has to provide funds to a public entity for the provision of a municipal service or function after 30 June 2004, it must do so by transferring such funds to the relevant municipality directly, and in accordance with subsection (2), unless the National Treasury has directed otherwise. (2) A public entity may not receive funds directly or indirectly from a national or 15 provincial organ of state for the provision of a municipal service in a municipality after

30 June 2004, unless such public Treasury in writing that it acts as an external mechanism for a municipality in terms of Chapter 8 of the Municipal Systems Act. municipality fail municipality must inform the National Treasury when such an agreement will be completed. to come to an agreement by the above date, the public entity has by 30 June 2004 notified the National public entity and relevant Where a entity and 20 (3) The National Treasury may withhold the payment of any grant to a public entity if the public entity fails to comply with subsection (2). (4) A public entity that receives a grant, directly or indirectly, from a national or 25 provincial organ of state for the provision of a municipal service in a municipality must report to that municipality and to the National Treasury, within seven working days after the end of each month, the amount spent on such municipal service and for which it has received funds, or is entitled to reimbursement from the funds transferred municipality. to the 30 ( 5 ) If a municipality fails to reimburse a public entity in terms of this section, the National Treasury may direct the withholding of funds due to the municipality, and reimburse the public entity directly. Transfers not listed in Schedules

9. An allocation not listed in the Schedules referred to in section 7 may only be made 35 in terms of section 6 (3) or in terms of an adjustments appropriation, and must be published in the Gazette by the Minister before the transfer of any funds to a province or municipality, and must comply with such monitoring and reporting requirements as may be determined by the National Treasury. Provincial infrastructure grant

10. A provincial treasury must, in respect of an allocation for provincial infrastructure listed in Schedule 4, submit to the National Treasury, not later than 1 April 2004, and in the format determined by the National Treasury, a plan on proposed spending for the budget year, the next financial year and the 2006107 financial year. Grant Infrastructure Municipal 11. (1) Allocations for addressing backlogs in basic municipal infrastructure development and the carrying out of municipal services are set out in Schedule 6A. 40 45 (2) Any allocation contemplated in subsection (1) which is intended, entirely or in rehabilitation of municipal infrastructure, teras cf a pdicy framework, a d allocations piibhhed iii ismis of 50 part, for the construction, maintenance or mmt only be i:: section 24( 1). 14 No. 26222 GAZETTE, GOVERNMENT 3 1 MARCH 2004 Act No. 5,2004 DIVISION OF REVENUE ACT, 2004 (3) A municipality must, in respect of an allocation for the Municipal Infrastructure Grant listed in Schedule 6A, submit to the National Treasury with its budget in terms of section 5(7), by not later than 30 June 2004 or such other date as may be determined by the National Treasury, a three-year capital plan on proposed spending for the 2004/05, 2005/06 and 2006/07 municipal financial years. The National Treasury may direct additional conditions on the transfer of funds to a municipality failing to comply with this provision, including transferring funds destined for the municipality via a district municipality or another organ of state. (4) The three-year capital plan of a municipality must include the following information, in a format Treasury: by National determined the 5 10 (i) how the municipality has prioritised the payment of commitments on the previous consolidated municipal infrastructure and water capital grants as at 30 September 2003, to the extent that it will receive allocations directly from the Municipal Infrastructure Grant to incur such payments; (ii) projections on future operational costs (iii) operational budgets for maintenance for new or upgraded infrastructure; 15 and operating costs on existing infrastructure; and (iv) how a municipality’s operational budget takes account of future commit- ments. ( 5 ) A district municipality receiving the Municipal Infrastructure Grant must, in its 20 budget and three-year capital plan, indicate all transfers and allocations-in-kind to local municipalities. Transfers between district and local municipalities must be approved in both their budgets, and any allocations in-kind must comply with section 12. (6) Each recipient municipality must, not later than 20 worlung days after the end of each quarter after 1 July 2004, submit a report to the National Treasury, which provides 25 details on the implementation of the capital budget, and any other details requested by the National Treasury as set out in the frameworks for municipal infrastructure grants. (7) The accounting officer of the national department for local government may, with the approval of the National Treasury, and after consultation with the responsible sector departments, make direct payments Grant allocation to a municipality for commitments incurred on previous consolidated municipal infrastructure and water capital grants as at 30 September 2003, if- to creditors against the Municipal Infrastructure 30 (i) (ii) the receiving municipality is unable, unwilling or commitments; or it is to fulfil contractual obligations entered into before 30 September 2003. fails to pay for such 35 Transfer of assets to municipalities 12. (1) A transferring national officer or a transferring provincial officer may not make any transfer to a municipality, of assets or any other financial resource, including an allocation-in-kind or the future transfer of an asset, intended, entirely or in part, for the construction, installation, maintenance or without- rehabilitation of municipal infrastructure 40 ( a ) a realistic estimate of the value of the asset and future potential of the benefiting municipality including reflection on the budget associated operating costs; liability, of the (b) a resolution of the municipal council that it will take transfer of such asset and 45 future operating costs; (c) the written approval of the relevant treasury, in terms of a framework required in subsection (3). (2) The transferring national officer or the transferring provincial officer, as the case may be, must, within such period as may be determined by the National Treasury, report 50 to the National Treasury on the actual contemplated in subsection (1). transfers effected in respect of the allocations a to 16 No. 26222 ~~~ GOVERNMENT GAZETTE, 31 MARCH 2004 Act No. 5,2004 DIVISION OF REVENUE ACT, 2004 (3) The Minister may, with the concurrence of the Minister responsible for local government, develop a framework for transfer of assets. To the extent that the framework affects the restructuring of water services or electricity distribution, the Minister must consult with the relevant Minister prior to the determination of the framework. 5 Municipal capacity building allocations 13. (1) Any transfer of an allocation, other than an allocation on the vote of the systems and the National Treasury, aimed at developing capacity of municipalities to perform functions assigned to them, may only be made in terms of a framework determined by the national accounting officer responsible for local 10 government, in consultation with the National Treasury. and improving municipal (2) The framework contemplated in subsection (1) must take into account integrated planning, performance management, financial management, budgeting and spatial planning considerations, and ensure that the capacity of a municipality is developed in measurable ways. ( 3 ) The transferring national or provincial officer responsible for a municipal capacity building allocation must, in the annual report of the relevant department, indicate the extent to which the capacity of any municipality was improved by that allocation and the extent to which such allocation was spent on non-public providers providing services or assistance municipality. 15 20 CHAPTER 4 DUTIES OF ACCOUNTING OFFICERS AND TREASURIES Duties of transferring national officers 14. (1) A transferring national officer must, not later than 14 days after this Act takes effect, certify to the National Treasury that- (a) allocation frameworks, conditions and monitoring provisions are reasonable and do not impose an undue administrative burden on benefiting provinces and municipalities; ( b ) funds will only be transferred after information required in terms of this Act the from transfening national officer has been provided; (c) funds will only be deposited by the transferring national officer into the primary bank account of a province or municipality; and (d) all other arrangements or requirements allocation have been complied with. necessary for the transfer of an 25 30 (2) A transferring national officer who has not complied with subsection (1) must 35 transfer such funds as directed by the National Treasury. (3) A transferring national officer must transfer all allocations to a province or municipality by depositing such funds into the primary bank account of the province or municipality, unless the National Treasury has directed otherwise for reasons related to better cash management. Before transferring transferring national officer must take note of any notice in terms of subsection 19(2) from the National Treasury outlining the details of the primary bank account for each province or municipality. (4) Despite anything to the contrary contained in any law, a transferring national the first allocation of any grant, the 40 officer must, in respect of any allocation, as part of the report contemplated in section 45 40(4)(c) of the Public Finance Management Act, not later than 20 days after the end of each month, and in the format determined by the National Treasury, submit to the National Treasury and the relevant executive authority, information for the month reported on and for the financial year up to the end of that month, on- ( a ) the amount of funds transferred (6) the amount of funds delayed or withheld from any province or municipality to a province or municipality; and the reasons for such delay or withholding; (c) the actual expenditure incurred by the province or municipality in respect of the allocations listed in Schedule 5, 6 and 6A; and (d) such other issues as the National Treasury may determine. 50 55 18 No. 26222 GOVERNMENT GAZETTE, 31 MARCH 2004 Act No. 5,2004 DMSION OF REVENUE ACT, 2004 Duties of transferring provincial officers

15. A transferring provincial officer must, as part of the report contemplated in section 40(4)(c) of the Public Finance Management Act, and in respect of any allocation to be after the end of each month and in the transferred to municipalities, within 15 days format determined by the National Treasury, submit to the national transferring officer, the relevant treasury that department, and the executive authority responsible for information on- 5 ( a ) the amount of funds transferred to a municipality in the month reported on and for the financial year up to the end of that month; (b) the amount of funds delayed or withheld from any municipality in the month 10 reported on; (c) actual expenditure incurred in respect of that allocation in the month reported on and for the financial year up to the end of that month; and (d) such other issues as the National Treasury may determine. officers Duties of receiving 15 16. (1) The relevant receiving officer must, in respect of an allocation to be transferred to- (a) a province, and as part of the report contemplated in section 40(4)(c) of the Public Finance Management Act, within 15 days after the end of each month, submit a report treasury, the relevant provincial 20 to the relevant provincial executive authority and the transferring national officer; and (b) a municipality, within 10 days after the end of each month, submit a report to the relevant transferring national or provincial officer. (2) The reports contemplated in subsection (1) must set out for that month and for the end up financial year ( a ) the amount received by the province or municipality, as the case may be; (b) the amount of funds delayed or withheld from the province or municipality, as of that month- to the the case may be; (c) the actual expenditure by the province or municipality, as the case may be, in respect of allocations set out in the Schedules 5, 6 and 6A; (d) the extent of compliance with the conditions of an allocation and with this Act; ( e ) an explanation for any material problems experienced or variations effected by the province or municipality, as the case may be, regarding an allocation which has been received and a summary of the steps taken to deal with such problems or the effect of such and variations; such other issues and information as the National Treasury may determine. (f) (3) The accounting officer of a municipality must submit to the National Treasury, in writing- account; (a) immediately after the commencement of this Act, the details of the relevant bank ( b ) immediately upon opening a new primary bank account, the details primary municipality’s of that and 25 30 35 40 municipality’s new primary bank account. (4) The receiving officer of a district municipality which intends to transfer to a local municipality, and vice versa, an allocation transferred to it in terms of this Act, or any portion of such transfer, may only effect such a transfer provided all allocations are 45 reflected in both municipality’s annual budgets by 1 July 2004, or if later, as approved by the National Treasury. (5) The Minister may prescribe additional duties for a receiving officer contemplated in subsection (4). 20 No. 26222 GAZETTE, GOVERNMENT 31 MARCH 2004 Act No. 5,2004 DIVISION OF REVENUE ACT, 2004 Duties of provincial accounting officers and treasuries 17. (1) The provincial treasury must publish, in the provincial Gazette, not later than 1 April 2004, the allocations per municipality for every allocation made by the province to a municipality in that province. with its annual budget or (2) The MEC responsible for financial matters in the province must, in the publication 5 contemplated in subsection (l), also indicate the envisaged division of the allocation contemplated in that subsection in respect of a municipality, for the next financial year and the 2006/07 financial year. (3) A provincial treasury must, within 22 days after the end of each month, and in the format determined by the National Treasury, and as part of its consolidated monthly 10 report, report on- (a) actual transfers received by the province from national departments; (b) actual expenditure on such allocations, excluding the allocations set out in Schedule 4, up to the end of that month; (c) actual transfers made by the province to municipalities, and projections on 15 actual expenditure by municipalities on such allocations; and (d) any problems of compliance with this Act, by transferring provincial officers and receiving officers, and the steps taken to deal with such problems. (4) The report contemplated in subsection (3) must, in respect of the provincial infrastructure allocation, include reports for each quarter and be in such format as may 20 be determined by the National Treasury. (5) Despite anything to the contrary contained in any law, a provincial treasury may, in accordance with any reporting framework determined by the National Treasury, make allocations to municipalities that were not published in terms of subsection (1). (6) The allocations contemplated in subsection (5) must be published in the provincial 25 Gazette before any transfers can be made. Annual financial statements for 2004105 18. (1) The annual financial statements for the 2004105 financial year of a department transferring any funds in respect of an allocation set out in Schedules 4, 5,6,6A, and 7, must, in addition to any requirements ( a ) indicate the total amount in terms of any other applicable of that allocation transferred to a province law- or 30 municipality; (b) indicate the funds, if any, that were withheld and the reasons for such withholding in respect of each province or municipality; (c) certify that all transfers to a province or municipality were deposited into the 35 primary bank account of a province or municipality; (d) indicate to what extent a province or municipality was monitored for compliance with the conditions of an allocation and the provisions of this Act; (e) indicate to what extent the allocation achieved its purpose and outputs; (’ indicate the funds, if any, utilised for the administration of the allocation, and 40 whether any portion department for that purpose; and of the allocation was retained by the transferring (g) indicate any non-compliance with this .4ct, and the steps taken to deal with such non-compliance. (2) The annual financial statements of a provincial department receiving grants respect of an allocation set out in Schedules 4, 5, 6 and 6A, must, in addition to any requirements in terms of any other applicable legislation- in 45 (a) indicate the total amount of all allocations received; (b) indicate the total amount of actual expenditure on all allocations, except allocations; 4 Schedule 50 ( c ) certify that all transfers in terms of this Act to a province or municipality were deposited into the primary bank account of such province or municipality; GAZE'ITE, No. GOVERNMENT 26222 22 3 1 MARCH 2004 Act No. 5,2004 DIVISION OF REVENLJE ACT, 2004 (d) indicate to what extent a province or municipality met the conditions of such an allocation, and complied with the provisions of this Act; indicate the extent to which the objectives of the allocation were achieved; and (e) u) contain such other information as the National Treasury may determine. (3) The annual financial statements and annual report of a municipality for the 5 2004/05 financial year must be in accordance with the Municipal Finance Management Act. (4) The National Treasury may determine how transfening departments and receiving 10 municipalities report on local government allocations on a quarterly basis to facilitate the audit of allocations for both the national and municipal financial years. CHAPTER 5 DUTIES OF NATIONAL TREASURY AND AUDITOR-GENERAL Duties of National Treasury 19. (1) The National Treasury must, together with the report contemplated in section 15 32(2) of the Public Finance Management Act, publish a report on actual transfers of all allocations listed in the Schedules referred to in section 7 or made in terms of section 9. (2) The National Treasury must, by 1 April 2004, submit a notice to all transferring national officers, containing the details of the primary bank account of each province and municipality. 20 (3) The Minister may, in writing, delegate any of the powers entrusted to the National Treasury in terms of this Act, to the Director-General of the National Treasury. (4) The Director-General of the National Treasury may, in writing, subdelegate any of the powers delegated in terms of subsection (3) to an official of the National Treasury. Duties of Auditor-General 25 20. (1) Without derogating from the powers and duties of the Auditor-General in in the audit of terms of the Constitution and any other law, the Auditor-General may, financial statements on the allocations set out in Chapter 3 or in a special report to be submitted to Parliament. reDort on- , I 30 by transferring national officers, the certification and reporting require- the extent of compliance with this Act transferring provincial officers and receiving officers; whether there was compliance with ments of this Act; the evaluation of evidence supporting the amounts and disclosures in monthly 35 and annual reports contemplated in this Act; whether a transferring national officer or transfening provincial officer made unauthorised transfers to any province or municipality or to any public or other entity; whether the monitoring systems compliance with this Act; whether each allocation to a province or municipality was made with this Act; and such other intergovernmental financial management matters Drescribed. of the transfemng departments were in accordance as may be 40 in (2) The internal audit unit of a department or municipality and its audit committee 45 must establish procedures, systems and mechanisms contemplated in subsection (1). to facilitate the external audit 24 No. 26222 GOVERNMENT GAZETIT, 3 1 MARCH 2004 Act No. 5,2004 DIVISION OF REVENUE ACT, 2004 CHAPTER 6 GENERAL Delaying of payments 21. (1) Subject to subsection (2), a transferring national officer may, after consultation treasury, for a period not with the National exceeding 30 days, delay the payment of an allocation in terms of Chapter 3, or any portion of such allocation, if- Treasury and the relevant provincial ( a ) the province or municipality does not comply with the conditions to which the 5 allocation is subject; (bj the municipality is in serious or persistent material breach of the measures 10 contemplated in section 5(6) or 5(7) ; or (c) expenditure on previous transfers reflects significant under-spending for which no satisfactory explanation is given. (2) The National Treasury may, after consultation with the relevant provincial treasury for a grant to that province, allow exceeding 30 days if such delay will ensure compliance with the conditions to which an allocation is subject or will ensure significant spending on that allocation. the transfer to be delayed for a period 1.5 (3) The transferring national officer must, in the monthly reports contemplated in this Act, inform the National Treasury of the steps taken to deal with the causes of the payment delay. 20 Withholding of payments 22. (1) The National Treasury may, subject to section 216 of the Constitution, withhold the transfer of- (a) an allocation set out in Schedules 4, 5, 6 and 6A, or allocation; or any portion of such 2.5 ( 6 ) an allocation in terms of section 5; or (c) an allocation in terms of section 9, if the transferring national officer has submitted to the province or municipality, as the case may be, a such allocation is due to be transferred, setting out facts reflecting a serious or persistent material breach of the 30 conditions to which the allocation is subject or upon receipt of audit reports for previous financial years which indicate serious or persistent material breach of this Act. written report, at least 21 days before (2) The Minister may approve that an allocation, or any portion thereof, withheld from a municipality in terms of subsection (I), be utilised to meet that municipality's outstanding financial commitments. statutory 35 (3) The utilisation of money contemplated in subsection (2) is a direct charge against the National Revenue Fund. Interim arrangements for reallocation 23. (1) A transferring national officer or a transferring provincial officer may, in the case of local and district municipalities, with Treasury and after consultation with the affected municipalities, reallocate an allocation referred to in section 7, or a portion of such an allocation, from one municipality to another municipality within that district- the written consent of the National 40 ( a ) if the reallocation is necessary to give effect to the division of functions within that district and to reduce the risk of under-spending; or 45 ( b ) if the affected district and local municipalities fail to agree on the performance of any municipal service. 26 No. 26222 GOVERNMENT GAZETTE, 3 1 MARCH 2004 Act No. 5,2004 DIVISION OF REVENUE ACT, 2004 (2) A transfemng national officer may, with the written consent of the National Treasury and after consultation with the affected provinces, reallocate the grant for the Comprehensive HIV and Aids grant, or a portion of such an allocation, from one province to another province, from provinces spending less per month than as agreed with the transferring national officer at the beginning of the financial year. if the reallocation is necessary to shift funds (3) The National Treasury must publish in the Gazette particulars of any reallocation of an allocation in terms of subsection (1) or (2) before any transfer of funds to give effect to the re-allocation. Spending in terms of purpose and subject to conditions 24.( 1) The Minister must, with regard to an allocation referred to in Schedule 4, 5 , 6, 6A or 7, publish in the Gazette, by 1 April 2004, the conditions of, and any other all information in respect of, each of the Schedule 6, 6A or 7 grants to local allocations per municipality for government. the allocations. Such publication must also include (2) Despite anything to the contrary contained in any law, an allocation referred to in Schedule 4,5,6,6A or 7 may only be utilised for the purpose stipulated in the Schedules Concerned and in accordance with the allocations or conditions published by the Minister in the Gazette. The Minister must publish in the Gazette any revisions after 1 April 2004 in the allocations or conditions in terms of sections 9 and 23. (3) The utilisation of an allocation set out in the Schedules for purposes other than constitutes a breach of the measures those set out in the Schedules concerned, established in terms of section 216(1) of the Constitution. 5 10 15 20 (4) Despite subsections (1) and (2), the National Treasury may authorise a province or municipality to retain and utilise such portion of the funds of an allocation set out in the Schedules listed in section 7, which remains after the fulfilment of that allocation’s purpose, and compliance with the conditions to which it is subject. 25 Transfers made in error 25.(1) Despite anything to the contrary contained in any law, the transfer of an allocation to a province, in error, is regarded as not legally due to the province for the purpose of its Revenue Fund. 30 (2) A transfer contemplated in subsection (1) must be recovered without delay by the responsible transferring national officer. (3) The National Treasury may direct that the recovery contemplated in subsection (1) be effected by set-off against future transfers to the province, which would otherwise become due in accordance with a payment schedule. (4) Despite anything to the contrary contained in any law, the transfer of an allocation that to a municipality, or a public municipality or public entity and must, within a reasonable period, be recovered by the responsible transferring national officer or transferring provincial officer. entity in error, is regarded as not legally due to ( 5 ) The accounting local government may direct that the recovery contemplated in subsection (4) be effected by set-off against transfers to the municipality concerned, which would otherwise become due in accordance with any payment schedule. officer of the national department responsible for Transfers to municipalities with weak administrative capacity 26. (1) If the national accounting officer responsible for local government has reasonable grounds to believe that- (a) a local municipality is not able to effectively administer an allocation referred to in section 7, or a portion of such an allocation, that officer may, for purposes of proper administration of the allocation, transfer such allocation, or portion thereof, to the relevant district municipality or to another local municipality within the district, after consultation with the municipalities concerned; or 35 40 45 50 28 GOVERNMENT No. 26221- GAZETTE, 3 1 MARCH 2004 Act No. 5,2004 2004 DIVISION OF REVENUE ACT, (b) a district municipality is not able to effectively administer an allocation referred to in section 7, or a portion of such an allocation, that officer may, for purposes of proper administration of the allocation, transfer such allocation, or portion thereof, to a local municipality within the district, after consultation with the municipalities concerned. (2) Any allocation, or portion thereof, contemplated in subsection (1) must be 5 administered by the district or local municipality to which it has been transferred, accordance with department responsible for local government. any directions issued by the accounting officer of the national in (3) The accounting officer of the national department responsible for local 10 government must publish in the Gazette particulars of the transfer of any allocation in terms of subsection (1). Funds to follow transfer of functions or obligations 27. (1) Despite anything to the contrary contained in any law, the transfer of functions or obligations from an organ of state in one sphere of government to an organ of state in another sphere of government or from one municipality to another municipality must take place only with the prior responsible for provincial and local government. written approval of the Minister and the Minister 15 (2) The transfer of functions or obligations contemplated in subsection (1) must, unless the Minister directs otherwise, include the transfer transferring organ of state or sphere of government for the purposes of performing such transferred function or obligation. of funds available to the 20 (3) No financial function or obligation of a national or provincial department may be imposed on a municipality without- (a) that municipality’s prior written acceptance by resolution of its council; and (b) the prior written approval of the National Treasury. 25 (4) A province must utilise its own funds for any function or obligation arising from a transfer by that province, which is in conflict with subsections (1) and (3). (5) Any liability arising from a determination of functions between a district and local 30 municipality by a province in terms of section 84 or 85 of the Municipal Structures Act is a liability of that province and not of the national government. Amendment of payment schedule and transfer mechanism 28. (1) Subject to subsection ( 2 ) , a transferring national officer may, in respect of an allocation set out in Schedule 4 , 5 , 6 or 6A, after consultation with the National Treasury and the relevant provincial spending of funds or on the grounds of under-performance or non-compliance with the conditions of an allocation. treasury, amend a payment schedule due to the under- 35 (2) The National Treasury may, in the interest of better debt and cash-flow management, or to deal with financial mismanagement, amend any payment schedule for an allocation listed in Schedule 2, 3, 4, 5, 6 or 6A after consultation with - 40 ( a ) the head of a provincial treasury, in the case of a provincial allocation; and (b) the accounting officer of the national department responsible for local of a local government and with organised local government, in the case government allocation. (3) A payment schedule revised in terms of subsection (1) or (2) must take reasonable 45 account of the monthly spending commitments revenue at the disposal of provinces or municipalities, and the minimisation of risk and debt servicing costs. of provinces or municipalities, the (4) An amendment of a payment schedule in terms of subsection (2) prevails over any amendment made in terms of subsection (1). Exemptions by National Treasury 2?. (I) The Nathnal Treasury mzy, on applicatior? ir? writin. bTi 2 transferrinu nntiona! or provincial officer, exempt in writing a transferring national or provincial officer from the duty to comply with reporting requirements or any other requirement regarding an 9: allocation set out in a Schedule Provided that such officer satisfies the National Treasury that- referred to in section 7 or envisaged in section b J - - - - -& .2 ^---- 50 55 30 No. 26222 GOVERNMENT GAZETIE, 3 1 MARCH 2004 Act No. 5,2004 DMSION OF REVENUE ACT, 2004 ( a ) the duty cannot be complied with at that stage; (b) the allocation programme is properly designed; and (e) the accounting officer is taking steps to comply with the provisions of this Act. (2) Any exemption contemplated in subsection (1)- ( a ) may only be granted if the accounting officer provides reasons why 5 information was not included in respect of an allocation set out in a Schedule referred to in section 7; and (b) must set out the conditions, if any, to which it is subject and must be published in the Gazette. Non-compliance with Act constitutes financial misconduct 10

30. Despite anything to the contrary contained in any law, any serious or persistent non-compliance with a provision of this Act, or the conditions, which an allocation in terms of this Act is subject to, constitutes financial misconduct. Any wilful act by a national transfemng officer or provincial transferring officer to deposit funds in an account other than the primary bank account offence, and such a person is, on conviction, liable for in section 86 (1) of the Public Finance Management Act. of a province or municipality constitutes an 15 to imprisonment or a fine as provided Liability for costs incurred in violation of principles of co-operative governance and intergovernmental relations 31. (1) An organ of state involved in an intergovernmental dispute regarding any 20 provision of this Act or any financial or fiscal matter must, before approaching a court to resolve such dispute, make every effort to settle the dispute with the other organ of state concerned, including by making use of the structures established in terms of the Intergovernmental Fiscal Relations Act. (2) In the event that a dispute is referred back by a court in accordance with section 25 41(4) of the Constitution, due to the court not being satisfied that the organ of state approaching the court has complied with subsection (l), the expenditure incurred by that organ of state in approaching the court must be regarded as fruitless and wasteful. (3) The amount of any such fruitless and wasteful expenditure must, in terms of a prescribed procedure, be recovered without delay from the person who caused the organ 30 of state not to comply with the requirements of subsection (1). Acts performed before Act took effect

32. Despite anything to the contrary contained in any law, any act performed prior to in fulfilment of the 1 April 2004 or in accordance with any prescribed requirements objects of this Act is regarded as having been done in terms of the relevant provisions of 35 this Act. Regulations

33. The Minister may, by notice in the Gazette, make regulations regarding- ( a ) anything which must or may be prescribed in terms of this Act; and (b) any matter which it is necessary to prescribe for the effective implementation 40 of the provisions and achievement of the objects of this Act. Repeal of laws 34. (1) Subject to subsection (2), the Division of Revenue Act, 2003 (Act No. 7 of 2003), is hereby repealed with effect from the date on which this Act takes effect. (2) The repeal of the Division of Revenue Act, 2003, does not affect any duty or 45 obligation set out in that Act, the execution of which is still outstanding. 32 No. 26222 GOVERNMENT GAZETTE, 3 1 MARCH 2004 Act No. 5,2004 DIVISION OF REVENUE ACT, 2004 Roll-overs from past Conditional grants 35. (1) All provincial departments which received conditional grants during the 2001/02,2002/03 or 2003/04 financial years must report on actual spending against such grants, including spending on roll-overs in subsequent years on such grants, 2003104 annual report, and to the relevant treasury by (2) A provincial department to a municipality or public entity in 2001/02, 2002/03 or 2003/04, must submit a report on actual spending by that municipality or public entity to the relevant provincial treasury by 31 May 2004. that transferred a portion of a conditional grant 31 May 2004. in their 5 (3) The relevant treasury must submit the report contemplated in subsection (1) to the 10 National Treasury by 15 June 2004. (4) The Minister may, after consultation with a Minister responsible for an in previous financial years, review such infrastructure conditional grant underspent grant if a roll-over from such grant is projected to lead to significant under-spending on the amounts allocated in this Act in that province, projected surplus be shifted that the province subject to the province passing an adjustments appropriation: Provided will be responsible for funding any future commitments for that conditional grant that the province has failed to anticipate during the rmiew, up to the maximum of the total shifted funds. to fund existing infrastructure budgets for the 2004/05 financial year, and direct that any 15 20 Short title and commencement

36. This Act is called the Division of Revenue Act, 2004, and takes effect on 1 April 2004. 34 GAZETTE, GOVERNMENT No. 26222 3 1 MARCH 2004 Act No. 5,2004 DIVISION OF REVENUE ACT, 2004 SCHEDULE 1 EQUITABLE DIVISION OF REVENUE ANTICIPATED TO BE RAISED NATIONALLY AMONG THE THREE SPHERES OF GOVERNMENT Spheres of Government National' Provincial Local TOTAL Column A 2004105 Allocation R'000 201 254 159 971 402 978 7 677 546 439057523 404653527 368903926 Column B Forward Estimates 2005106 R'000 222 158 651 243 300 856 173 851 535 8 643 364 9 341 2006107 R'000 186 391 726 941

1. National share includes conditional grants to provincial and local spheres, debt service costs and the contingency reserve. SCHEDULE 2 DETERMINATION OF EACH PROVINCE'S EQUITABLE SHARE OF THE PROVINCIAL SPHERE'S SHARE OF REVENUE RAISED NATIONALLY (as a direct charge against the National Revenue Fund) Province I Eastern Cape 2004105 Allocation Forward Estimates Column B Column A R'000 26 990 176 10 551 267 24 547 021 33 058 939 21 788 865 11 606 061 3 838 795 13 270 464 14319814 1 159971402 1 2005106 R'000 29 082 907 11 378 197 26 643 833 36 105 489 23 730 291 12 748 274 4 124 972 14 409 922 15 627650 I 173851535 I 30 913 625 12 103 992 28 530 264 38 900 829 25 496 547 13 812 776 4 372 227 15 436 497 16 824 969 186391726 Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga Northern Cape North West Western Cape TOTAL 36 No. 26222 GOVERNMENT GAZETTE, 31 MARCH 2004 Act No. 5,2004 DIVISION OF REVENUE ACT. 2004 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY SCHEDULE 3 Category Number Municipality IEASTERN CAPE EClOl EC102 EC103 EC I04 EC 105 EC106 EC107 EC108 EC109 C DClO Total: Cacadu Municipalities Camdeboo Blue Crane Route Ikwezi Makana Ndlambe Sundays River Valley Baviaans Kouga Koukamma Cacadu District Municipality EC121 EC 122 EC 123 EC 124 EC 125 EC126 EC 127 EC128 C DC12 Total: Amatole Municipalities Mbhashe Mnquma Great Kei Amahlathi Buffalo City Ngqushwa Nkonkobe Nxuba Amatole District Municipality EC131 B EC132 B B EC133 EC 134 B B EC135 B EC136 EC137 B EC138 B C DC13 Total: Chris Hani Municipalities Inxuba Yethemba Tsolwana Inkwanca Lukhanji Intsika Yethu Emalahleni Engcobo Sakhisizwe Chris Hani District Municipality Column A 2004/05 Allocation R'000 ~ I 1 1 Column B Years Outer MTEF 2005/06 R'000 I 2006/07 R'000 161 0751 155 9761 174 21 8 555 10 717 4 168 15 855 13 4201 12 436 11 099 7 627 4 730 93 686 49 641 54 81 1 10 014 27 472 192 698 20 213 24 982 6 266 87 6531 473 751 1 8 5891 9 074, 5 5831 26 289 44 919 26 659 30 544 11 3981 94 387 257 441 ~~~~~1 6 6 50 301 i 123 1171 I 41 7801 25 903 ~ 44 752 30 252 51 39 182i 71 146' , 184 659; 46s 857; 950 1841 7 298 9 067 ~ 3 766 13 562 11 808 9 998 4 074 10 380 7 5401 3 3901 80 8831 I 41 216' 45 253 8 872 22 327 168 569 I6 549 22 460' 5 4511 73 0361 403 734 1 I 8 306 7 141 4 910 24311 37 325 21 519 25 177 10 142; 82 9641 221 7961 25 332 2ili;l 45 3721 108 2211 I 34 6751 21 574 37 078' 24 930 42 576 ~ 32 3341 57 7541 151 209 4% 130, 8 01 9 88 4 00 15 14 13 15 10 74 4 34 11 58 8 25 2 25 87 37 41 67 48 40 9 37 23 68 178 42 16 99 23 71 5 75 80 21 428 23 9 06 7 16 5 19 25 57 35 52 20 99 25 58 10 68 89 20 228 98 26 91 2627 86 74 47 99 114 79 35 20 22 79 38 92 24 11 4343 33 48 55 09 I59 49 4i2 54 28 08 64 63 64 52 157 25 B B B B C Total: Ukhahlarnba Municipalities EC141 EC142 EC143 EC144 DC14 Elundinl Senqu Maletswai Gariep Ukhahlamba District Municipality 6 166 333; 6 6 EC151 B EC152 E EC153 B EC154 B B EC155 EC156 B EC157 B C DC15 I 0-1: i3.R Tambo Municipaiities r n l . Mbizana Ntabankulu Qaukeni Port St. Johns Nyandeni Mhlontlo King Sabata Daiindyebo O.R. Tambo District Municipality B EC05bl B EC05b2 DC44 C Total: Alfred Nzo Municipalities Umzimkhulu Umzimvubu Alfred Nzo District Municipality 32 603 ~ 78 134i 73 249 183 986 I 26 815; 65 279i 61 216i 153 309' Total: Eastern Cape Municipalities 1781 9131 1 526 050 1 603 40 38 GOVERNMENT No. 26222 GAZETTE, 31 2004 MARCH Act No. 5, 2004 DIVISION OF REVENUE ACT, 2004 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY SCHEDULE 3 Municipality Category Number ~~ FREE STATE B FS161 B FS162 B FS163 C DC16 Total: Xhariep Municipalities Letsemeng Kopanong Mohokare Xhariep District Municipality B FS171 B FS172 B FS173 C DC17 Total: Motheo Municipalities Naledi Mangaung Mantsopa Motheo District Municipality B B ~B 'B B IC Total: Lejweleputswa Municipalities FS181 FS182 FS 183 FSl84 FS185 DC18 Masilonyana Tokologo Tswelopele Matjhabeng Nala Lejweleputswa District Municipality B B B B B C Total: Thabo Mofutsanyane Municipalities Setsoto Dihlabeng Nketoana Maluti-a-Phofung Phumelela Thabo Mofutsanyana District Municipality FS191 FS192 FSl93 FS194 FS 195 DC19 B FS201 Moqhaka ~B IB B C ITotal: Northern Free State Municipalities FS203 FS204 FS205 DC20 Ngwathe Metsimaholo Mafube Northern Free State District Municipality I Total: Free State Municipalities I

1. All allocations arefor the natlonaifinancial year Column A 2004/05 Allocation R'000 12 357 16 9061 17 044 3 3801 49 687 I i 11 948 286 18 019 1 038 235 291 26 813 12 372 21 556 121 457 30 431 1 658 39 563 26 752 26 140 131 286 15 135 13 622 499 42 731 39 052 21 75 1 18 061 1 159 122 754 , 874 5241 Column B MTEF Outer Years 1 i R'OOO 2005/06 2006/07 ~ ' 0 0 0 10 787 16 0511 13 166 3 158 43 163 11 8.57 17 9271 11 867 3 142 44 193 9 097 143 829 204 13 898 1041 161 864 9 198 148 678 15 126 1 000 174 002 20 590 9 507 16 634 92 220 25 684 1 066 21 432 10 018 14 502 98 847 28 369 1 000 174 167 165 701 214 293 32 588 23 944 20 207 103 763 12 555 13 248 206 305 252 I 32 7771 29 383 19 492 14 534 1041 97 2271 35 808 26 824 17 669 88 036 13 619 12 897 194 853 32 476 29 616 21 780 16 003 1 000 100 876 I 680 2601 691 688 GOVERNMENT 26222 40 No. ~~~ GAZETTE, 3 1 MARCH 2004 No. Act 5,2004 DIVISION OF REVENUE ACT, 2004 SCHEDULE 3 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY Municipality Category Number lGAUTENG A A A Ekurhuleni City of Johannesburg City of Tshwane GT02bl CBLC2 Nokeng tsa Taemane Kungwini 145 24 986 Municipality CBDC2 District Metsweding C Total: Metsweding Municipalities GT421 GT422 GT423 Emfuleni Midvaal Lesedi GT411 GT414 CBLC8 GT4 12 B B B B C CBDC8 Total: West Rand Municipalities Mogale City Randfontein Westonaria Merafong Citv Rand West I _ 2 Municipality District Column A 2004/05 Allocation R'000 Column B MTEF Outer Years 2005/06 R'000 2006/07 R'000 305 5151 108 425 485 023 613 393 540 445 391 161 300 956 269 776 201 389 14 7 3261 2 586 24 897 9 7871 21 587 1 663 33 036 10 9451 1 099 36 189 32 985 14 225 27 282 42 752 1311 3751 I 498 61 046 1 927 167 683 52 914 46 587 22 3 14 19 626 43 106 38 68 625 ~. ~~. 1591 119 550 188 Total: Gauteng Municipalities 1 140 1151 1 565 358) 1 770 820 I . All allocations are for the nationalfinancial year I 42 No. 26222 GOVERNMENT GAZETTE, 31 MARCH 2004 Act No. 5,2004 D M S I O N OF REVENUE ACT, 2004 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY ' SCHEDULE 3 Municipality Category Number KWAZULU-NATAL A eThekwini B B B B B B C Total: Ugu Municipalities KZ21 I Kz212 KZ213 KZ214 KZ215 KZ216 DC21 Vulamehlo Umdoni Umzumbe uMuziwabantu Ezingolweni Hibiscus Coast Ugu District Municipality B B B B B B B C Total: uMgungundlovu Municipalities KZ22 1 Kz222 KZ223 KZ224 E 2 2 5 KZ226 KZ227 DC22 uMshwathi uMngeni Mpofana Impendle Msunduzi Mkhambathini Richmond uMgungundlovu District Municipality B KZ232 B KZ233 B a 2 3 4 B E 2 3 5 B KZ236 DC23 C TotakUthukela Municipalities Emnambithinadysmith Indaka Umtshezi Okhahlamba Imhahazane Uthukela District Municipality B E 2 4 1 B a 2 4 2 E 2 4 4 B KZ245 B C DC24 Total: Umzinyathi Municipalities Endumeni Nquthu Msinga Umvoti Umzinyathi District Municipality Kz252 8 B E 2 5 3 B E 2 5 4 C DC25 -Total: Amajuba Municipalities Newcastle Utrecht Dannhauser Amajuba District Municipality ColumnA Outer MTEF 2004/05 Allocation I Column B C 2 0 n 5 / 0 h 1 R'000 R'000 Years 2006107 R'000 392 243 13 672 4 904 19 114 11 610 7 535 15 394 38 680 909 12 600 7 822 4 768 5 337 74 873 7 472 8 927 20 830 142 629 18 537 11 519 7 714 13 082 11 658 32 937 95 448 4 523 14 919 22 142 16 009 36 259 93 853 39 663 4 089 9 727 6 452 59 932 474 524 6 709 1 13 284 27 012 14 643 9 456 22 77 1 52 554 146 429 110 17 936 9 489 6 525 7 030 86 475 10 863 10 473 28 040 176 832 24 895 16 102 8 663 18 981 16 529 45 274 130 443 5 996 19 830 25 321 1 14 7901 42 8931 108 83OI , 50 828 ~ 5 231 13 412 9 053 78 525 I 52.5 556 14 045 7345 29 134 15 676 10 022 24 794 57 432 158 441 19 354 9 866 7 082 7 404 91 769 11 682 I1 211 32 068 190 437 26 677 17 278 8 762 20 346 17 634 49 712 140 409 6 594 20 975 27 149 15 818 45 847 116 384 55 422 5 528 14 326 10 049 85 326 44 No. 26222 GOVERNMENT GAZElTE, 3 1 MARCH 2004 Act No. 5,2004 DIVISION OF REVENUE ACT, 2004 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY SCHEDULE 3 I Number Category Municipality B B B B B C Total: Zululand Municipalities 114 E 2 6 1 KZ262 KZ263 KZ265 KZ266 DC26 eDumbe uPhongolo Abaqulusi Nongoma Ulundi Zululand District Municipality B B B B B C Total: Umkhanyakude Municipalities KZ27 I KZ272 a 2 7 3 E 2 7 4 KZ275 DC27 Umhlabuyalingana Jozini The Big 5 False Bay Hlabisa Mtubatuba Umkhanyakude District Municipality B KZ28 1 B E 2 8 2 B E 2 8 3 KZ284 B KZ285 B KZ286 B C DC28 Total: uThungulu Municipalities Mbonambi uMhlathuze Ntambanana Umlalazi Mthonjaneni Nkandla uThungulu District Municipality B B B B C Total: nembe Municipalities KZ291 E 2 9 2 KZ293 KZ294 DC29 eNdondakusuka KwaDukuza Ndwedwe Maphumulo Ilembe District Municipality B KZ5a2 B B KZ5a3 KZ5a4 B B KZ5a5 DC43 C Total: Sisonke Municipalities Ingwe Kwa Sani Matatiele Kokstad Ubuhlebezwe Sisonke District Municipality KZ5al 1 Column A 2004105 Years Outer MTEF , Allocation b ! R'000 Column B __ T 1 2006/07 R'000 R'000 8 157 12 960 15 081 17 067 19 729 41 824 818 14 692 16 944 4 879 13 221 5 225 36 943 91 9041 9 587 35 308 6 554 20 246 7 294 14 401 25 676 119 0651 16 727 21 101 17 722 15 592 31 945 103 086 13 407 4 114 3 381 8 105 12 269 19 998 61 334 4491 18 326. 20 417 23 590 26 365 56 476 156 623, I 19 404 1 24 4141 63911 18 822 5 801 48 377 123 210 13 739 47 73 1 8 463 1 28 763 10 095 19 567 38 611 42 969' 166 18 642 19 016 21 848 17 337 37 192 114 035 16 915' 4 44191 167 i: 31 6461 27 81 1471 12 356 19 622 21 804 25 030 21 7 10 61 108 167 630 j22 38:; 6 775 20 211 5 898 51 422 131 485 14 777 51 036 8 894 30 730 10 799 20 897 443 179 577 19 513 20 481 23 444 18 488 41 192 123 119 18 099 4 645 4479 12 737 17 876 173 89 008 Total: KwaZulu-Natal Municipalities 1 385 221, 1 757 5671 1 907 379

1. All allocations are f o r the nationalfinancial year ~- ~~~ 46 No. 26222 GOVERNMENT GAZETTE, 3 1 MARCH 2004 Act No. 5, 2004 DIVISION OF REVENUE ACT, 2004 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY ' SCHEDULE 3 I 1 I I I I Municipality Number I Category LJMPOPO B B B B B C Total: Greater Sekhukhune Cross Boundary Municipalities Makhuduthamaga Fetakgomo Greater Marble Hall Greater Groblersdal Greater Tubatse Greater Sekhukhune Cross Boundary NP03A2 NP03A3 CBLC3 CBLC4 CBLC5 CBDC3 NP04Al B B CBLC6 CBDC4 C Total: Bohlabela Municipalities Maruleng Bushbuckridge Bohlabela District Municipality NP33 1 B NP332 B NP333 B NP334 B C DC33 Total: Mopani Municipalities Greater Giyani Greater Letaba Greater Tzaneen Ba-Phalaborwa Mopani Disbict Municipality NP341 B NP342 B B NP343 B NP344 C DC34 Total: Vhernbe Municipalities Musina Mutale Thulamela Makhado Vhembe District Municipality NP35 1 B NP3S2 B B NP353 NP354 B NP355 B DC3S C Total: Capricorn Municipalities Blouberg Aganang Molemole Polokwane Lepelle-Nkumpi Capricorn District Municipality B B B B B B C Total: NP36 1 NP362 NP364 NP365 NP366 NP367 DC36 Thabazimbi Lephalale Mookgapong Modimolle Bela Bela Mogalakwena Waterberg District Municipality Municipalities Waterberg column^ 2004/05 MTEF I Allocation R'OOO 1 I ~ 23 870 10 666 13 943 24 452 25 397 65 164 119 : 89 791' 11 285 60 176 42 162 113 623 36 820 24 710 37 926 16 491 48 144 164 092 7 302 13 470 56 884 50 831 56 494 184 982 19 752 14 491 12 807 65 244 21 432 30 344 164 070 16 350 13 786i 4 945 I 38 425 1 8 159 5 6681 97 8681 B Column Outer Years 2005/06 R'OOO 1 i 2006/07 woo0 37 862 15 17F 19 461 33 91c 39 41C 96 36C 242 180 17 188 74 065 61 255 152 512 40 925 37 60 1 60 141 18 851 81 999 239 517 9 345 15 332 81 421 70 483 95 225 271 806 26 134 22 887 20 027 107 801 33 699 52 128 262 676 18944 25 792 7 538 16 582 11 155 63 654 2 409 146 075 35 183 14 218 36 784 332 226 813 16 044 72 187 56 142 144 374, 41 134 35 263 55 937 18 701 71 518 222 554 647i 15 051 76 720 67 75 1 82 918 251 086 24 592 21 308 18 674 97 541 31 378 45 369 238 8621 I 17 074 ' 23 134 6 844 14 877 9 990 57 568 3 6441 133 1311 Total: Limpopo Municipalities 888 752 1216 8201 1314 766

1. All allocations arefor the nationalSinancia1 year 26222 No. 48 GOVERNMENT GAZETTE, 3 I MARCH 2004 Act No. 5,2004 D M S I O N OF REVENUE ACT, 2004 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY ' SCHEDULE 3 Number Category Municipality MPUMALANGA Column A 2004/05 R'000 B B B B B B B c Total: Gert Sibande Municipalities MP301 MP302 MP303 MP304 MP305 MP306 MP307 DC30 Albert Luthuli Msukaligwa Mkhondo Seme Lekwa Dipaleseng Govan Mbeki Gert Sibande District Municipality ' I 22 9291 31 4241 17 25 17 4781 12 628 I I4 131 79111 34 8131 3 368 139 681 B MP311 MP3 12 B B "313 B MP3 14 B MP3 15 B MP3 16 DC3 1 C Total: Nkangala Municipalities Delmas Emalahleni Steve Tshwete Highlands Thembisile Dr JS Moroka Nkangala District Municipality B MP321 B MP322 B MP323 B MP324 C DC32 Total: Ehlanzeni Municipalities Thaba Chweu Mbombela Umjindi Nkomazi Ehlanzeni District Municipality Total: Mpumalanga Municipalities

1. AI1 allocations are for the national financial yea1 8 385 1 34 422 17 375 7 545 35 784 34 902 1 299 139 713 18 600 63 561 10 690 12 47 021 55991 199 145 470 424 8641 Column B MTEF Outer Years R'000 ROO0 i 1 42 39 0271 819' 835l 17 245 18 365 10 276 47 1201 2 1651 182 8511 I 11 494' 48 1391 20 937 49 939 1 050 211 191 825 19 604 91 405 9361 71 7131 36051 217 263 881 , 573 9381 460 25 735 28 632 19 188 20 743 11 312 53 376 1431 202 877 12 879 54 242 23 655 9 640 56 020 54 014 1 003 453 21 832 99 964 14 397 79 300 2 3 8 1 632 211 50 No. 26222 GOVERNMENT GAZETTE, 31 MARCH 2004 No. Act 5,2004 DIVISION OF REVENUE ACT, 2004 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERk'S SHARE OF REVENUE RAISED NATIONALLY SCHEDULE 3 Number Category Municipality NORTHERN CAPE B I: NCOlBl N W l a l CBLCl CBDCl Gamagara Moshaweng Ga-Segonyana Kgalagadi District Municipality C Total: Kgalagadi Cross Border Municipalities B B B B B B C NC061 NC062 NC064 NC065 NC066 NC067 DC6 Richtersveld Nama Khoi Kamiesberg Hantam Karoo Hoogland Khai-Ma Namakwa District Municipality Municipalities NC07 1 NC072 NC073 NC074 NC075 NC076 NC077 NC07 8 C DC7 Total: Karoo Municipalities Ubuntu Umsobomvu Emthanjeni Kareeberg Renosterberg Thembelile Siyathemba Siyancuma Karoo District Municipality Mier NC081 B B NC082 B NC083 B NC084 B NC085 NC086 B C DC8 Total: Siyanda Municipalities Kai ! Garib //Khara Hais ! Kheis Tsantsabane Kgatelopele Siyanda District Municipality B n B B C Total: Frances Baard Municipalities NC091 NC092 NC093 CBLC7 DC9 Sol Plaatje Thusanang Magareng Phokwane Frances Baard District Municipality Total: Northern Cape Municipalities

1. All allocations are for the nationalfinancial year 1 I I 17 566 14 230 51 353 2 942 7 032 2 762 4 784 3 616 3 572 1 397 26 106 26 486 Column A 2004/05 Allocation R'000 - 1 ~ Column B MTEF Outer Years 2005/06 R O O 0 I 1 I 2006/07 R'000 I 16 18 52401 496 090 14 507 54 415 30501 39441 461 15 287 16 14 808 16 590 50 499 3 342 7 145 4 183 6 710 5 132 3 439 2 520 2 795 6 365 3 128 5 048 3 868 3 354 1 930 33 071 Total: Namakwa 6 919 8 320 9 403 4 715 4 594 4 582 6 340 10 448 3 7511 1 59 I 073 3 412 12 099 10 087 4 796 7 118 5 017 4 246 46 775 29 126 12 119 8 157 16 800 2 5561 68 7581 I 262 0921 5 465 6 550 6 980 3 530 3 412 3 387 4 740 8 363 2 9091 45 3351 , 2 848 13 219 8 375 4 362 ::::I 714 3 42 381 I I 981 35 32 5371 9 986 lX1! 14 138 2 3421 65 184i I I 229 886' 4 868 7 049 7 431 3 201 3 502 3 536 4 517 9 078 1 993 174 45 2 938 14 577 9 408 4 639 6 676 3037 3 584 44 859 10 827 6 625 15 223 1 868 70 523 015 238 52 No. 26222 GOVERNMENT GAZETTE, 31 MARCH 2004 Act N ~ . 5,2004 DIVISION OF REVENUE ACT, 2004 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY SCHEDULE 3 Municipality Category Number A Column 2004/05 Allocation R'000 , ' Column B R'oon R'onn I ~ B B B B B C Total: Bojanala Platinum Municipalities Moretele Madibeng Rustenburg Kgetlengrivier Moses Kotane Bojanala Platinum District NW371 NW372 NW373 Nw374 Nw375 DC37 Municipality NW381 B NW382 B NW383 B NW384 B NW385 B DC38 C Total: Central Municipalities Ratlou Tswaing Mafikeng Ditsobotla Zeerust Central District Municipality Nw39 1 B B NW392 NW393 B NW394 B NW395 B NW396 B C DC39 Total: Bophirima Municipalities Kagisano Naledi Mamusa Greater Taung Molopo Lekwa-Teemane Bophirima District Municipality NW401 B W 4 0 2 B NW403 B NW404 B DC40 C Total: Southern Municipalities Ventersdorp Potchefstroom Klerksdorp Maquassi Hills Southern Municipality District Total: North West Municipalities

1. All allocations are for the nationalfinanclal year 973 978' 61 58 8 495 ~ 43 764 9 2091 207 115) 9821 17 14 010 26 209 14 322 17 247' 51 813, 141 5831 18 712 6 849 ~ 8 100' 30 524 4 133 5 9801 37 6991 111 996i 15 128 53 496 9710! 13 421 1 1 244 92 999 I I I I 2501 6721 37 1661 70 577 79 234 9 248 10 51 2 9861 250 4611 I 16 4071 17 15 29 149 18 419) *' 07')( 53 910 153 637 15 848 7845 8 194 26 667 3 7451 7 203 35 1891 104 691 1 I 10 506 18 065 71 220 15 743 ~ 1 0441 116 5791 I 40 721 77 718 87 839 194 55 503 1 805 273 779 815 212 16 636 31 579 19 21 234 59 503 165 979 16 744 8 579 8 782 27 938 3 877 7 785 39 266 112 971 11 512 20 425 80 967 447 17 1 000 350 131 54 No. 26222 GOVERNMENT GAZEITE, 31 MARCH 2004 Act No. 5,2004 D M S I O N OF REVENUE ACT, 2004 DETERMINATION OF EACH MUNICIPALITY'S EQUITABLE SHARE OF THE LOCAL GOVERNMENT SPHERE'S SHARE OF REVENUE RAISED NATIONALLY ' SCHEDULE 3 Number Category Municipality WESTERN CAPE 1 , Column A 2004105 Allocation R'000 Column B MTEF Outer Years I 1 1 R'000 2005/06 R'000 2006/07 A City of Cape Town 205 778 275 550 311 970 6 970 6 6621 5 033 :::2"1 1 634 121 33 10 816 16 347 10 590 14 536 10 103 2 250 64 643 72 11 466 6844 2 748 4 432 1 046 26 537 5 048 4 521 6 903 14 734 7 859 7 809 7 397 5 688 7 148 7304 1 395 36 741 12 123 18 488 11 976 16 331 11 508 1 807 233 12 952 7 839 3 136 4 874 1 003 29 805 5 474 5 127 7 916 16 783 8 936 6 3161 5 061 4 014 4 443 6 997 1 790 28 621 I 8 939 13 366 8 153 13 174 8 286 2 493 54 411 93171 4 921 2 335, 4 042 1 053 21 668 4 189 3 916 4 980 10 488 5 762 B B B B B C Total: West Coast Municipalities WCOll w c 0 1 2 WC013 WC014 WC015 DC1 Matzikama Cederberg Bergrivier Saldanha Bay Swartland West Coast District Municipality B WC022 WC023 B B WC024 B WC025 B WC026 C DC2 Total: Boland Municipalities Witzenberg Drakenstein Stellenbosch Breede Valley Breede River Winelands Boland District Municipality WC031 B B WC032 WC033 B WC034 B C DC3 Total: Overberg Municipalities Theewaterskloof Overstrand Cape Agulhas Swellendarn Overberg District Municipality B B B B B WC04 1 wc042 WC043 w c o 4 4 WC045 Kannaland Langeberg Mossel Bay George Oudtshoorn

1. All allocations are f o r the nationulfinancial year 56 No. 26222 GOVERNMENT GAZETTE, 3 1 MARCH 2004 Act No. 5,2004 DMSION OF REVENUE ACT, 2004 I I - -1' EL e; 61

58 No. GOVERNMENT 26222 -___ Act M I . 5,2004 DMSION OF REVENUE ACT, 2004 GAZE'ITE, 31 MARCH 2004 No. 26222 60 -___ Act No. 5, 2004 DIVISION OF REVENUE ACT, 2004 GOVERNMENT GAZETTE, 3 1 MARCH 2004 3 Q) a a' ! 62 No. 26222 GOVERNMENT GAZETTE, 31 MARCH 2004 Act No. 5,2004 DMSION OF REVENUE ACT. 2004 L i

64 No. 26222 - Act No. 5,2004 GOVERNMENT GAZETTE, 3 1 MARCH 2004 D M S I O N OF REVENUE ACT, 2004 66 GAZETTE, GOVERNMENT No. 26222 31 MARCH 2004 Act No. 5,2004 DIVISION OF REVENUE ACT, 2004 Y ." 8 e a Y Y 8 I J GOVERNMENT GAZETTE, 3 1 MARCH 2004 D M S I O N OF REVENUE ACT, 2004 p7 m C C 0 0 rn m Ii f \ I- C 0 0 t- m e 68 - No. 26222 Act No. 5, 2004 1 C C C 3 0 0 0

2 N m z N O O Z z k 70 No. 26222 GAZE'ITE, GOVERNMENT 31 MARCH 2004 Act No. 5,2004 DIVISION OF REVENUE ACT, 2004 0 o r - M 00 - N 3 3 3 30 .A N . . n . 3 P i r- r- v3 o o ;(n O Z cd C 0 .- 0 r- N N 2 J 12 No. 26222 GOVERNMENT GAZETTE, 3 1 MARCH 2004 Act No. 5.2004 DMSION OF REVENUE ACT, 2004 t- In v3 N v3 3 e c.l 13 13 0 0 w? 0 o\ o\ e m e * m h h t- W 00 m 3 u3 N h 5 g F , 2 h rn e Q = : d n 3