A Guide for Councillors

Part 1

What is the MFMA?

THE MFMA IS A LAW THAT GUIDES COUNCILLORS AND OFFICIALS IN MUNICIPAL FINANCIAL MANAGEMENT.

IT PROVIDES US WITH THE TOOLS THAT WE CAN USE TO MONITOR THE COUNCIL ‛ S PROGRESS. WE CAN CHECK THAT THE MONEY BUDGETED MATCHES THE COUNCIL ‛ S PRIORITIES FOR THE COMMUNITY.

WE CAN ALSO USE IT TO MAKE CHOICES ABOUT HOW TO DELIVER SERVICES IN THE BEST WAY.

The Municipal Finance Management Act, 2003 (MFMA) was passed to strengthen and modernise municipal fi nancial management. It requires all councillors to play an active role in managing municipal fi nances. The MFMA deals with the fi nancial arrangements in a municipality and must be understood in the broader context of local government activities and service delivery generally.

8

Understanding the Municipal Finance Management Act