LOCAL GOVERNMENT: MUNICIPAL FINANCE MANAGEMENT ACT

REPUBLIC OF SOUTH AFRICA

LOCAL GOVERNMENT:

MUNICIPAL FINANCE

MANAGEMENT ACT

REPUBLIEK VAN SUID-AFRIKA

WET OP PLAASLIKE

REGERING: MUNISIPALE

FINANSI?LE BESTUUR

No 56 , 2003

2

ACT

To secure sound and sustainable management of the financial affairs of municipalities and other institutions in the local sphere of government; to establish treasury

norms and standards for the local sphere of government; and to provide for

matters connected therewith.

B

E IT ENACTED by the Parliament of the Republic of South Africa, as

follows:��

ARRANGEMENT OF SECTIONS

CHAPTER 1

INTERPRETATION, OBJECT, APPLICATION AND AMENDMENT OF ACT

1.

2.

3.

4.

5

Definitions

Object of Act

Institutions to which Act applies

Amendments to Act

CHAPTER 2

10

SUPERVISION OVER LOCAL GOVERNMENT FINANCE MANAGEMENT

5.

6.

General functions of National Treasury and provincial treasuries

Delegations by National Treasury

CHAPTER 3

MUNICIPAL REVENUE

15

Part 1: Municipal bank accounts

7.

8.

9.

10.

11.

12.

Opening of bank accounts

Primary bank accounts

Bank account details to be submitted to provincial treasuries and AuditorGeneral

20

Control of municipal bank accounts

Withdrawals from municipal bank accounts

Relief, charitable, trust or other funds

Part 2: Cash, investment and asset management

13.

14.

Cash management and investments

Disposal of capital assets

25

4

CHAPTER 4

MUNICIPAL BUDGETS

15.

16.

17.

18.

19.

20.

21.

22.

23.

24.

25.

26.

27.

28.

29.

30.

31.

32.

33.

Appropriation of funds for expenditure

Annual budgets

Contents of annual budgets and supporting documents

Funding of expenditure

Capital projects

Matters to be prescribed

Budget preparation process

Publication of annual budgets

Consultations on tabled budgets

Approval of annual budgets

Failure to approve budget before start of budget year

Consequences of failure to approve budget before start of budget year

Non-compliance with provisions of this Chapter

Municipal adjustments budgets

Unforeseen and unavoidable expenditure

Unspent funds

Shifting of funds between multi-year appropriations

Unauthorised, irregular or fruitless and wasteful expenditure

Contracts having future budgetary implications

5

10

15

20

CHAPTER 5

CO-OPERATIVE GOVERNMENT

34.

35.

36.

37.

38.

39.

40.

41.

42.

43.

44.

Capacity building

Promotion of co-operative government by national and provincial institutions 25

National and provincial allocations to municipalities

Promotion of co-operative government by municipalities

Stopping of funds to municipalities

Stopping of equitable share allocations to municipalities

Stopping of other allocations to municipalities

30

Monitoring of prices and payments for bulk resources

Price increases of bulk resources for provision of municipal services

Applicability of tax and tariff capping on municipalities

Disputes between organs of state

CHAPTER 6

35

DEBT

45.

46.

47.

48.

49.

50.

51.

Short-term debt

Long-term debt

Conditions applying to both short-term and long-term debt

Security

Disclosure

Municipal guarantees

National and provincial guarantees

40

CHAPTER 7

RESPONSIBILITIES OF MAYORS

52.

53.

54.

General responsibilities

Budget processes and related matters

Budgetary control and early identification of financial problems

45

6

55.

56.

57.

58.

59.

Report to provincial executive if conditions for provincial intervention exist

Exercise of rights and powers over municipal entities

Municipalities which do not have mayors

Municipalities with executive committees

Delegations of mayoral powers and duties

5

CHAPTER 8

RESPONSIBILITIES OF MUNICIPAL OFFICIALS

Part 1: Accounting officers

60.

61.

Municipal managers to be accounting officers

Fiduciary responsibilities of accounting officers

10

Financial management

62.

63.

64.

65.

66.

67.

68.

69.

70.

General financial management functions

Asset and liability management

Revenue management

Expenditure management

Expenditure on staff benefits

Funds transferred to organisations and bodies outside government

Budget preparation

Budget implementation

Impending shortfalls, overspending and overdrafts

15

20

Reports and reportable matters

71.

72.

73.

74.

75.

76.

Monthly budget statements

Mid-year budget and performance assessment

Reports on failure to adopt or implement budget-related and other policies

General reporting obligation

Information to be placed on websites of municipalities

Protection of accounting officer

25

Part 2: Financial administration

77.

78.

79.

Top management of municipalities

Senior managers and other officials of municipalities

Delegations

30

CHAPTER 9

MUNICIPAL BUDGET AND TREASURY OFFICES

80.

81.

82.

83.

Establishment

Role of chief financial officer

Delegations

Competency levels of professional financial officials

35

CHAPTER 10

MUNICIPAL ENTITIES

Part 1: Establishment

84.

Financial implications for municipalities

40

8

Part 2: Financial governance

85.

86.

87.

88.

89.

90.

91.

92.

Bank accounts

Bank account details

Budgets

Mid-year budget and performance assessment

Remuneration packages

Disposal of capital assets

Financial year

Audit

Part 3: Accounting officers

93.

94.

95.

96.

97.

98.

99.

100.

Chief executive officer to be accounting officer

Fiduciary duties of accounting officers

General financial management functions of accounting officers

Asset and liability management

Revenue management

Monthly reconciliation of revenue and accounts

Expenditure management

Budget implementation

5

10

15

Part 4: Reports and reportable matters

101. Impending under-collection, shortfalls, overspending, overdrafts and non- 20

payment

102. Irregular or fruitless and wasteful expenditure

103. Reporting of improper interference by councillors

104. General reporting obligations

Part 5: Other officials of municipal entities

25

105. Duties of other officials

106. Delegation of powers and duties by accounting officers

107. Competency levels of professional financial officials

Part 6: General

108. Borrowing of money

109. Financial problems in municipal entities

30

CHAPTER 11

GOODS AND SERVICES

Part 1: Supply chain management

110.

111.

112.

113.

114.

115.

116.

117.

118.

119.

Application of this Part

35

Supply chain management policy

Supply chain management policy to comply with prescribed framework

Unsolicited bids

Approval of tenders not recommended

Implementation of system

40

Contracts and contract management

Councillors barred from serving on municipal tender committees

Interference

Competency levels of officials involved in municipal supply chain management

45

Part 2: Public-private partnerships

120. Conditions and process for public-private partnerships

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download