(2) Subsections (3) to (10) apply to the national government and a national government entity. (3) The national government or a national government entity may receive a grant or donation from a development partner with the approval of the Cabinet Secretary and only as provided by this section.

(4) Funds received in the form of grants or donations shall only be spent in accordance with Articles 221 and 223 of the Constitution and this section.

(5) As soon as possible after receiving the grant or donation, the recipient shall notify the Cabinet Secretary of the receipt.

(6) If a project that is being financed by a grant or donation requires national government funding, the project may only be started when— (a) the required funding has been appropriated in accordance with this Act or is authorised by other legislation; or (b) the Cabinet Secretary has given a written authorisation for the project to start.

(7) The Cabinet Secretary shall inform Parliament of the authorisation given under subsection (6)(b) in accordance with Article 223 of the Constitution.

(8) The recipient of a grant or donation from a development partner shall record the amount or value of the grant or donation in its books of accounts.

(9) Subject to audit in terms of Article 229(4) of the Constitution, the recipient of a grant or donation shall administer and account for the grant or donation by using— (a) government financial accounting and auditing laws and, administrative procedures; or (b) any financial accounting rules and procedures for money specified in the agreement between the recipient and the development partner.

(10) The Cabinet Secretary may in addition to the audit under subsection (9), permit a donor of a grant to audit such funds on the basis of its own financial accounting rules.

48. Regulations on grant administration (1) Regulations approved by Parliament shall provide for the administration, control and management of grants, including— (a) procedures to ensure that grants are spent on the basis of the integrated national development plan; (b) procedures for the allocation and disbursement of the grants; (c) requiring that grants be used only to finance programmes within the integrated development plan; (d) the publication of transparent criteria for the allocation of grants; (e) requiring specific terms and conditions in agreements to which grant recipients are subjected; (f) procedures for the budgeting, financial management, accounting and reporting of grants by grants recipients; (g) procedures under which a third party may be authorised to receive, control or pay public money as a grant; and (h) measures to ensure that a third party authorised to receive, control or pay public money as a grant, or responsible for any other aspect 41 No. 18 of 2012 Public Finance Management [Rev. 2020] of administration of a grant, is subject to the same obligations as a public officer under this Act.

(2) Regulations under subsection (1) shall include measures to ensure public disclosure, accountability and participation in relation to the grants, including— (a) timely public disclosure to intended beneficiaries of the allocation and disbursement of grants to grant recipients; (b) timely public disclosure by grant recipients to intended beneficiaries of expenditure and performance achieved in relation to the grant; (c) measures to facilitate intended beneficiaries to participate in the design and management of projects or public services financed by the grant; (d) measures allowing intended beneficiaries to report instances of noncompliance with the regulations or grant agreement; (e) sanctions to be imposed on grant recipients for non-compliance with grant conditions by any grant recipient; and (f) obligations of a public officer or third party authorised to receive, control or pay public money as grants.