A Guide for Councillors

Part 2 Understanding the Municipal Finance Management Act

The executive mayor, mayor or executive committee The mayor is the political head of the municipal council. S/he provides political guidance in the fi nancial affairs of council. This includes:

consultation setting policy ensuring the co-ordination of the budget process ensuring that policy complies with national legislation approving the performance contract for the municipal manager and monitoring performance.

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The municipal manager The municipal manager is accountable to the mayor and council for implementing policies. The municipal manager is responsible for the overall fi nancial management of the municipality. The municipal manager is accountable to: the executive mayor or council for implementing policies, decisions and processes that have been agreed on the council for the overall administration of the municipality. • •

The municipal manager:

ensures that the necessary fi nancial systems are in place performs fi nancial management responsibilities which include:

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being entrusted with the fi nancial oversight of the municipality performing general fi nancial management functions preparing and implementing the budget reporting on expected shortfalls, overspending and overdrafts.

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The Role of Councillors in Municipal Finance Management