A Guide for Councillors

Part 1 Understanding the Municipal Finance Management Act

SO THE MFMA GUIDES COUNCILLORS AND OFFICIALS BUT IT ALSO PLACES ON THEM THE DUTY TO MAKE SURE THAT THE COUNCIL MEETS THE COMMUNITY ‛ S NEEDS.

IT ALSO MAKES IT EASIER FOR COMMUNITIES TO PARTICIPATE IN LOCAL GOVERNMENT.

The MFMA guides the municipal manager and chief fi nancial of fi cer in managing the fi nances of the municipality. Councillors use the tools provided for in the MFMA so that they can be satis fi ed that the activities of the municipality are well-managed.

The MFMA is closely linked to the Municipal Systems Act (MSA). They both deal with: planning and budgeting processes that are integrated as one process credit control procedures performance management systems the procurement of goods and services the annual service delivery and budget implementation plan (SDBIP) with measurable performance objectives • • • • •

the annual report municipal entities consultation with the community the roles and responsibilities of councillors and of fi cials.

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11

The Role of Councillors in Municipal Finance Management