A Guide for Councillors

Part 2 Understanding the Municipal Finance Management Act

The MFMA provides procedures and sets out the responsibilities of different role- players to make the separation of powers clear for everyone. The following table shows the framework for fi nancial governance in a municipality:

The fi nancial governance framework

Responsible for: Oversight over:

Accountable to:

Council

Approving IDP, policy and budget

Executive mayor or Committee

Community

Executive mayor or Committee

Policy, budgets, outcomes Outputs and implementation Outputs and implementation

Municipal manager

Council

Municipal manager

The administration Executive mayor or Committee

Municipal manager

Chief fi nancial of fi cer and senior managers

Financial management and operational functions

Delegation of responsibilities Councils delegate many of their responsibilities to municipal of fi cials. This is practical and more ef fi cient. However, council is still responsible for the tasks they have delegated. Councillors should ensure that there are performance measures to promote accountability for tasks they have delegated. Tasks that are delegated relate to: fi nancial administration management procuring goods and services. A good system of delegation allows the political of fi ce bearers and of fi cials to delegate certain responsibilities, in order to increase the ef fi ciency of the municipality. Delegated tasks must be in writing and must explain how the delegated task is to be conducted. • • •

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The Role of Councillors in Municipal Finance Management