SUBSISTENCE AND TRAVELLING ALLOWANCE POLICY
1. INTRODUCTION
In terms of section 66 of the Municipal Finance Management Act, No. 56 of 2003 “ the
accounting officer of the municipality must report to the council, in the format, and for
the periods prescribed, all expenses relating to staff salaries, allowances and benefits,
separately disclosing (inter alia) travel, subsistence and accommodation allowances
paid.”
Therefore, subsistence and travel costs will be charged to the municipality for
attendance of government programmes, professional institutes gatherings, etc, that
have relevance to the promotion of developmental local government in accordance with
the delegation policy of the municipality.
2. PURPOSE OF THE POLICY
2.1.
To provide for the circumstances under which claims can be lodged for
accommodation, subsistence and travelling.
To provide for amounts that can be claimed and the relevant categories of
officials thereof.
To encourage a culture of saving costs for the municipality.
2.2.
2.3.
Every representative who travels on the business of the municipality must comply with
this policy in letter and in spirit.
3. APPLICATION OF THE POLICY
This policy applies to:
 all councilors of Ga-Segonyana Local Municipality, and
 all officials of the municipality,
who are travelling on official business and as such are formal representatives of
Ga- Segonyana Local Municipality.
4. DEFINITIONS
Any word or phrase used has the same expression as used in the applicable legislation.
5. SUBSISTENCE AND TRAVELLING ALLOWANCE
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All business – related travelling
5.1 A subsistence allowance does not cover any personnel recreation, such as alcoholic
beverages, private telephone calls, visits to a cinema, theater or nightclubs, or
sightseeing.
5.2 The subsistence allowance may be claimed without the councilor or official having to
furnish proof expenses for the amount of R500,00 (five hundred rands) overnight and
R100 for daily allowance, or
5.3 The actual costs of accommodation supported by documentary proof will be borne by
the Municipality, subject to the following maximum amount per overnight:5.3.1 R600,00 (six hundred rands), for Towns and
5.3.2 R900,00 (nine hundred rands), for Cities
For any accommodation that exceeds these amounts approval should be received from
the Municipality Manager or his nominee.
5.4
A councilor or official of the Municipality must claim his or her subsistence allowance, as
provided in this policy, before embarking on any official trip. The subsistence allowance
must, in order to facilitate its timeous payment, be claimed at least three working days
before the planned trip.
The daily allowance will be paid directly into the Councillor or Officials bank account.
5.5
No subsistence allowance will be paid, and no councilor or official will be entitled to a
subsistence allowance, if the trip or travel is not related to the official business of the
Municipality. All travel on business of the Municipality must be approved as such before
a councilor or official is entitled to a subsistence allowance.
5.6
If a delegate is for any reasons not in a financial position to bear the additional costs e.g.
petrol, when using the council vehicle, an advance will be paid subject to the following
conditions:
5.6.1 The necessary invoices, receipts must be submitted to the Finance Department as proof
of expenses incurred within seven days of return after the trip.
5.6.2 If necessary receipts, invoices or proof of expenses incurred is not submitted within
seven days of return by delegates, the amount total to the advance will be deducted
from the delegate’s salary in full on the next payroll run. The above shall be effected
without further notification or correspondence to the delegate in this regard.
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6. SUBSISTANCE ALLOWANCE IF TRAVEL IS FOR A DAY OR PART OF A
DAY WITH NO OVERNIGHT STAY
If a Councillor or an official travels on the business of the Municipality for a day or part of a day,
a subsistence allowance of R100 per day or part of a day is payable, except when travelling to
Moshaweng and Red Sands.
7. AIR TRANSPORT
7.1
Every attempt shall be made to reduce travel costs by comparing the costs advantage of
using alternative transport mode.
7.2
All flights by officials/ councilors of the Municipality shall be in ECONOMIC CLASS, unless
another class of travel is specifically authorized by Council.
7.3
Only “A” or “B” category vehicles may be rented.
7.4
Car rental must be approved as part of the travel package before the trip is embarked
on.
7.5
Travel Agents must be used for the booking of the travel package.
8. USING PRIVATE VEHICLES
8.1
The kilometer rate shall be paid out at the current tariffs as determined by the
Department of Transport and from time to time. The kilometer rate in clauses 8.2 and
8.3 below will change as and when determined by the Department of Transport. (SEE
ANNEXURE “A”)
The capacity of the vehicle must taken into consideration in calculating the claim in
clauses 8.2. and 8.3. below as determined by the Department of Transport tariffs in
attached annexure.
8.2
All officials of Ga-Segonyana Municipality that qualifies for car allowance must use their
private vehicles and claim for the kilometers travelled as per private tariffs (annexure
“A”) for all official trips travelled outside Ga-Segonyana boundaries.
8.3
If Council vehicle is not available for officials that are not receipt of a car allowance, a
private owned vehicle can be used with approval of the Municipal Manager and they are
entitled to claim as per private tariffs (annexure “A”) travelled inside or outside GaSegonyana boundaries with a log sheet with regard to kilometers travelled within the
boundaries of the Municipality.
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8.4
Officials or/ and councilors must disclose to their insurers that they use their privately
owned vehicles for business purposes from time to time as Ga-Segonyana Municipality
will not be held liable for anything that might happen to the vehicle whilst on official
business trip
8.5
If involved in an accident while on official trip and non negligent is proved Council will
pay the access amount.
9 PERSONS INVITED FOR INTERVIEWS
The following tariffs will apply for claims from external applicants for personnel vacancies. As
approved by Corporate Administration Manager.
 R1.50 per kilometer travelled.
9.1. AUTHORIZATION
9.1.1. Only the Municipal Manager or his nominee with the recommendation of the Head of
Department may authorize any travel to be undertaken by officials, or payments to be
made for persons invited for interviews
9.1.2. For the Municipal Manager, the mayor or the Speaker or any member of Executive
Committee may authorize the travelling and
9.1.3. For the councilors, the speaker or the Municipal Manager or his nominee may authorize
the travelling expenses.
9.1.4. The above should be authorized the expenses to be incurred are on the approved
budget of the relevant department.
An invitation to attend a workshop, meeting or related event is not an automatic
authorization to attend such workshop or event. The required authorization must still
be obtained from the Municipal Manager or mayor or executive committee, as the case
may be.
10. LIMITATION ON THE NUMBER OF VISITS
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It is imperative that councillors and officials attend the conferences, seminars,
meetings, workshops, etc that have relevance to their own portfolio.

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Limitations on this aspect is difficult, however, the Mayor, Municipal Manger
and the Managers should ensure that the necessary voted amounts are not
exceeded.
Attendance of repetitive workshops, training, etc must be avoided.
11. CONSEQUENCES OF BREACH OF POLICY
Any person who breaches this policy and in so doing causes financial and material loss to
Council shall be required to refund the Council or rectify the loss and/or be liable for
disciplinary action.
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