THE Chris Hani District Municipality may lose millions of rands of service delivery money due to non-expenditure in the previous financial year, if the provincial treasury does not approve an application for retention.
During an ordinary council meeting, an agenda item indicated that CHDM had an unspent amount of R103-million for bulk infrastructure for Sakhi-sizwe Municipality from the human settlements department.
When the money could not be spent by the end of the 2015-16 financial year, CHDM applied for a budget rollover, but the department only approved R30-million. Human settlements granted approval for the projects to be finished in phases up to February 2018.
“The municipal water infrastructure grant (MWIG) funding was not fully utilised during the 2015-16 financial year with the unspent balance of R34529643 as at June 30 this year, due to the declaration of drought by council and funds had to be relocated to drought relief.”
An application for rollover of the unused funds was made and approved by National Treasury.
The district authority used R28-million of the R70-million from provincial treasury and Cooperative Governance and Traditional Affairs Department (Cogta) for water-related projects.
A total of R42-million had not been spent by the end of the financial year in June this year. Should the two departments not approve the application, the money will be returned to the departments.
Cogta EC funded various land survey projects for R1.25-million with the funding granted over the previous financial years.
“Some of these projects could not be implemented due to various challenges and the funds could not be fully utilised to the extent of R1.008-million as at June 30.”
The economic development, environmental affairs and tourism department funded greening and rehabilitation projects for R2.332-million in the 2015-16 financial year.
The funds could not be utilised to the extent of R1.5-million The 2016-17 medium-term revenue expenditure, framework-adjusted budget was at R109.133-million with operating revenue of R2.508-million and a capital revenue of R106.625-million.
There were also some equitable share funded projects that could not be spent.
In the municipal manager’s office, R13.337-million for special projects and R400000 for municipal support, as well as R300000 for alien plant management from the municipal health and community services, could not be spent.
The corporate services directorate had unspent funds for the integration of systems at R1.2-million, process controllers R300000 and electronic document management system at R2-million.
The integrated planning and economic development directorate indicated that small town revitalisation funds and integrated development plan funds of R1.2-million and R975000 respectively were unspent by end of the previous financial year.
Other internally generated funds, which were unspent from the asset financing reserve totalled R25.7-million. These included R7.6-million for the Elliot fire station, R11-million for the refurbishment of the district authority’s Bells Road offices and the purchase of 11 vehicles for the council fleet at R2.3-million.
Council approved the rollovers and would await word from provincial government for the conditional grants approval.