A Guide for Councillors

Part 6 Using reports and resolving fi nancial problems We have seen that the MFMA makes councillors and of fi cials accountable for municipal service delivery. It also helps community members monitor their councils. We will discuss the tools that councillors use to monitor council’s progress, and also what happens if municipalities are not managing their fi nances properly. 6.1 Using fi nancial statements In-year fi nancial reports and the SDBIP help councillors monitor progress during the year. The municipal manager and the executive mayor or committee also prepare year-end reports. Councillors compare these reports to the plans.

THESE YEAR-END REPORTS ARE VERY USEFUL.

THEY ALSO HELP US MAKE POLICY AND ADJUST OUR PLANS WHERE NECESSARY.

REMEMBER WE ALSO NEED THE REPORTS OF MUNICIPAL ENTITIES, WE ARE ALSO ACCOUNTABLE FOR HOW WELL THEY WORK.

I WOULD ALSO LIKE TO ASK FOR FURTHER INFORMATION ON THE OPERATIONS OF ONE OF OUR MUNICIPAL ENTITIES

MAYBE THE CFO SHOULD EXPLAIN TO US WHY WE COLLECTED LESS REVENUE THAN WE ANTICIPATED

HE MUST ALSO TELL US THE STEPS HE IS TAKING TO IMPROVE BILLING AND REVENUE COLLECTION

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The Role of Councillors in Municipal Finance Management