A Guide for Councillors

Understanding the Municipal Finance Management Act

Introduction

Councillors can get a copy of the MFMA from their mayor or municipal manager. It is also available on the National Treasury website at www.treasury.gov.za/mfma/

Councillors make policy decisions for the area that they serve. These policies guide the administration in spending and managing the fi nances of the municipality. Councillors have a duty to make sure that the policies are implemented correctly. This Guide helps councillors use the MFMA to manage the fi nances of their municipalities properly.

Accountability: Being accountable is being responsible for what you do and being prepared to explain to others why you made certain choices. Transparency: Is about explaining actions even before being asked. If a process is transparent it is clear to everyone how and why decisions are made. This involves clear communication.

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Councillors should use the MFMA to promote accountability and transparency in their municipality. Of fi cials are accountable to the Executive Council; the Executive Council to the Council and councillors collectively and individually are accountable to the electorate/ community.

THE MFMA IS NOT ONLY FOR MUNICIPAL MANAGERS AND FINANCE OFFICERS. IT ALSO APPLIES TO COUNCILLORS. I GUESS THAT IS US!

This uide helps councillors to manage the fi nances of their municipalities in away that bene fi ts the communities they serve. G

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The Role of Councillors in Municipal Finance Management