A Guide for Councillors

The Role of Councillors in Municipal Finance Management

Part 3

Council must receive monthly fi nancial reports and quarterly reports on service delivery and budget implementation. They need to debate and consider these reports in terms of the following: the implementation of the budget and delivery of services the fi nancial state of affairs of the municipality potential fi nancial shortfalls in operating and capital expenditure facilities and equipment that are coming to the end of their operational life and will need urgent repairs or replacement any expenditure items that may be wasteful or unnecessary corrective actions that need to be instituted to ensure the effective and ef fi cient implementation of the budget. • • • • • •

Council should regularly review the budget and performance of entities under council control.

Council must approve the annual report of the municipality and adopt a report from the oversight committee. An oversight report contains the council’s comments on the annual report. Councillors need to ensure that the of fi cials can account for municipal assets and liabilities. Investments can help municipalities to set aside money that can be used at a future date, although this must be weighed against other opportunities in the immediate term.

Liabilities: All debts or amounts owing by a municipality. Liabilities may be in the form of accounts payable, loans and long-term debts.

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Understanding the Municipal Finance Management Act