A Guide for Councillors

The Role of Councillors in Municipal Finance Management

Part 4

Council should focus on:

Are we collecting monies due? Are we spending in terms of the budget? Are services being delivered and capital projects being implemented?

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COUNCILLORS RECEIVE REGULAR REPORTS. THEY NEED TO CHECK THAT COUNCIL REVENUE COLLECTION AND SERVICE DELIVERY SPENDING IS IN LINE WITH PLANS. PROBLEMS NEED TO BE IDENTIFIED AND REMEDIED EARLY.

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First quarter review: Councillors should ensure that all budget plans are being implemented. Second quarter or mid-year review: Councillors should ensure that deadlines are being met. Councillors look for changes or shortfalls which show that the budget must be adjusted. Councillors see if there are past and current year budget problems that might impact on the next budget. Consider, if necessary, an adjustments budget to take account of: unforeseeable and unavoidable expenditure, for example, repairs to fl ood-damaged infrastructure anticipated shortfalls in revenue or unexpected increases in expenditure Third quarter review: Councillors make sure that end-of-year goals can be reached and that they are in line with the budget. If changes to the budget are needed they can be included in the budget for the next year. • •

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Understanding the Municipal Finance Management Act