Finance
Hon Johnson.
What support has her Department provided to municipalities to ensure that their proposed projects align with the technical requirements and allocation criteria for grant funding as set out in the Grant Framework published on 7 March 2024?
Provincial Treasury engages regularly with municipalities through monthly monitoring and annual technical and strategic engagements, in line with our vision to be a reliable and enabling partner. These interactions give PT a clear understanding of the challenges and opportunities facing municipalities.
In response, PT implements targeted support and capacitation initiatives to strengthen institutional capacity and improve financial performance. This includes technical advice, training, peer learning, and, where appropriate, financial assistance through the Western Cape Financial Management Capability Grant. These integrated support measures help municipalities identify viable projects and prepare credible, compliant funding proposals. As a result, applications submitted to PT meet key requirements, allowing for faster review and approval. This enables quicker implementation, more efficient grant spending, and improved delivery of essential services.
Ultimately, PT views our grant funding as a transitional tool aimed at fostering long-term self-sustainability within municipalities. While financial assistance provides some immediate support, the overarching objective is to enhance municipal capacity to independently manage their finances and infrastructure in the future. By strengthening institutional capabilities, promoting sound financial governance and supporting the development of sustainable funding strategies, the overall goal is to enable long-term sustainability and growth.
Formal in-year reporting against the WC FMCG allocations has been institutionalised as part of the existing monthly and quarterly financial and non-financial reporting mechanisms provided for in respectively sections 71 and 52 of the Local Government: Municipal Finance Management Act (MFMA) (Act 56 of 2003) (MFMA). Provincial Treasury actively monitors these reporting instruments throughout the year to determine whether grant expenditure takes place in line with the commitments made in the project implementation plans (proposals). The reporting requirements are also included in the memorandum of agreements signed between PT and municipalities before funds are transferred.
