6a.    Steps for infrastructure development and assessment

 

PROCEDURES TO BE FOLLOWED WHEN APPLYING FOR INFRASTRUCTURE DEVELOPMENT ON MUNICIPAL COMMONAGE

 

 

 

Application from TLC/DC – PDLA procedures
 
 

 

 

1. TLC prepares application -
 
Oval: 2. Submits to PDLA
Flowchart: Alternate Process: 3b. PDLA approves quote from SP/ TLC C
Flowchart: Alternate Process: 3a. PDLA submits to Minister
Flowchart: Predefined Process: 4. Approval
Oval: 5. TLC submits invoices
 

 

 

 


6. PDLA requests  & issues

payment/s

 


 


1.      APPROVAL MECHANISM

 

The TLC prepares the application, and submits it to the PDLA. The application consists of the following:

 

q       Approval for project funds; and

q       Approval of service provider and quotes.

 

1.1              Approval for the project funds will be obtained from the Minister and the application includes the following:

 

§         A covering letter applying for the funds to develop the infrastructure;

§         A detailed and legal description of the commonage land on which the infrastructure will be developed;

§         A Land use management plan indicating how the commonage will be used, developed and managed;

§         An undertaking from the users to pay their maintenance levies/leasing fees on this commonage;

§         An agricultural feasibility/potential report applicable to the commonage;

§         An assessment report indicating what infrastructure is needed on this commonage and an estimate cost thereof (See 6b;

§         The Council Resolution, (See 6c);

§         A copy of the TLC’s financial statements; and

§         Information on other existing commonage and leasing arrangements.

 

1.2              The second part of the application consists of the approval of the service provider and quote/s for the development/construction of the infrastructure. Ministerial approval is not needed as the payment and approval of service provider lies with the PDLA.

 

There are two scenarios for appointing the service provider:

 

§         Where the TLC appoints a service provider, who supplies the material and provides the labour required for the construction/development of the infrastructure; and

§         Where the TLC is the service provider. The TLC obtains the material from suppliers, but supply their own labour for the construction/development of infrastructure

 

The application consists of the following:

 

§         A letter stating who are the service providers (who will supply material, who will provide labour), detail on the quotes submitted, and confirmation that the quotes/s indicate the details as set out in the assessment report;

§         The time frame stipulated; and

§         The quotes from the service providers for material and labour (See 6d).

 

The PDLA prepares the submission and submits to the Minister for approval of project funds and proceeds to approve and appoint the service provider and the quote. PDLA should ensure that the amount stipulated for the funds needed is not in excess of 25% of land value (See 6b).

 

Once approval has been obtained from Minister and the relevant service provider has been approved, the service provider proceeds to do the work as stipulated in the application.

 

2.      FINANCIAL MECHANISM 

 

The request for funds will be made upon submission of the invoice from the service provider. The TLC submits the invoice with a letter from the Commonage Committee certifying that the infrastructure has been put in place and the work has been done satisfactorily.

 

The Provincial Financial Manager confirms that the funds are available and a payment advice (form 1084) is made out in the name of the service provider.

 

The Financial Manager processes the payment and depending on the amount payable (i.e. >R10 000 >) the service provider will be paid via electronic payment or Warrant Voucher (Government cheque).

 

If the TLC is the service provider, the PDLA can request an initial payment for the supplier of the material. The supplier’s quote has been approved by the PDLA as part of the application for funds from the TLC. The PDLA issues the supplier with an order number. The request must include the approved quote and list of material to be purchased. The Provincial Financial Manager confirms that the funds are available and provides the supplier with an order number through issuing an order form (form 1450). The Commonage Committee confirms receipt of the material in writing and the TLC submits the supplier’s invoice and written confirmation of receipt of material to the PDLA. The Financial Manager confirms that the funds are available and makes out a payment advice (form 1084) and processes the payment via electronic transfer.