Msukaligwa Local Municipality 2008/09 - Co-operative Governance ...

1. FINANCIAL MANAGEMENT ARRANGEMENTS1.1 Financial Supervisory Authority• The South African National Treasury prescribes the format of the municipalities’ annual budget.• The South African National Treasury exercises control over the budget growth,• Control over the increase in debtors and the Department of Local Government, Traffic Control and Traffic Safety, Mpumalanga exercise theapplication of financial procedures, through the project viability Initiative.• Compliance to the above is controlled by the office of the Auditor-General In terms of Act 12 of 1995.• The Board of Municipal Accountants In terms of the Municipal Accountants Act, Act 21 of 1988 prescribes the minimum qualifications andregistration of the Chief Financial Officer. This legislation has been repealed since.• The National Electricity Regulator controls the annual budget of the Electricity Service, tariffs structure and annual statements as a ring-fencedservice.1.2 Base Financial Guidelines and Procedures• Financial transactions are regulated by the Accounts Standing Board Through Standard Financial Regulations and Principals as reviewed fromtime to time,• All services of the municipality are being regulated by the by-laws adopted by the Msukaligwa Municipality since amalgamation.• The acquiring of goods and services Is regulated by a procurement policy in terms of the Preferential Procurement Policy Framework as per Actsof 2000, and in terms of the Supply Chain Policy adopted by Council• Existing valuation rolls for various incorporated areas of the municipality implemented from 1 July 2001 and valid until 30 June 2005, wereextended until 30 June 2007. New valuations had been done in accordance with the MPRA to be Implemented from I July 2007 and valid for 4years until 30 June 2011.• Credit control and debt collection procedures only apply up to the stage where it becomes necessary to engage in legal action.• Indigent support is being implemented according Councils indigent policy, above other rebates on assessment rates payable by ratepayersaccording Councils policy for elderly people and pensioners.1.3 Financial Management Resources• The staff positions of the Finance Department totals 110 according the ideal structured Organogram. Only 68 of those positions are budgeted forwith 61 filled. 42 Positions are not budgeted for.• Due financial constraints, much needed positions could not be budgeted for during the past financial years, and should be attended to during thefollowing 5 years, In order to be able to provide proper service delivery.2. FINANCIAL STRATEGY FRAMEWORK2.1 Basic financial guidelines and procedures• Service tariffs policyService tariff policies was compiled and approved.• Rates policyThe Municipal Property Rates Act was promulgated and the Municipality had its valuation roll drafted In accordance with the new legislation. ADraft Rates Policy was approved by Council; the final policy will be submitted for approval and to be implemented as from 1 July 2007.Msukaligwa Municipality: Integrated Development Plan 2007/2012 301