BUDGET IMPLEMENTATION AND MONITORING POLICY
5. ROLES AND RESPONSIBILITIES
5.1 Role of the Mayor (sections 52-59 MFMA)
The role of the Executive Mayor is detailed in sections 52- 59 of the MFMA. In terms of section 53 of the Act the Mayor of a municipality must-
5.1.1 Provide general political guidance over the budget process and the priorities that must guide the preparation of a budget.
5.1.2 Coordinate the annual revision of the integrated development plan in terms of section 34 of the Municipal Systems Act and the preparation of the annual budget, and determine how the
integrated development plan is to be taken into account or revised for the purpose of the budget; and
5.1.3 Take all reasonable steps to ensure that-
(a) the municipality approves its annual budget before the start of the budget year;
(b) the municipality’s service delivery and budget implementation plan is
approved by the mayor within 28 days after the approval of the budget;
(c) the annual performance agreements as required in terms of section 57(1) (b) of the Municipal Systems Act for the municipal manager and all senior managers.
5.1.4 Promptly report to the municipal council and the MEC for finance in the province any delay in the tabling of an annual budget, the approval of the service delivery and budget implementation plan or the signing of the annual performance agreements.
5.1.5 The Mayor must, within 30 days of the end of each quarter, submit a report to the council on the implementation of the budget and the financial State of affairs of’ the municipality; and
5.1.6 The Mayor must ensure-
(a) that the revenue and expenditure projections for each month and service delivery targets and performance indicators for each quarter, as set out in the SDBIP, are made public no
(b) later than 14 days after the approval of the SDBIP; and
that the performance agreements of the municipal manager and any other categories of officials as may be prescribed, are made public no later than 14 days after the approval of
the municipality’s SDBIP. Copies of such performance agreements must be submitted to the council and the MEC for local government in the province.
5.1.7 Check whether the municipality's approved budget is implemented in accordance with the service delivery and budget implementation
plan.
5.1.8 Instructions to the accounting officer to ensure that the budget is implemented in accordance with the service delivery and budget implementation plan and that spending of funds and revenue collection proceed In accordance with tine budget.
5.1.9 In terms of section 56 of the Act the Mayor must give guidance to the municipality in exercising its rights and powers over MEs in a way-
(a) that would reasonably ensure that MEs complies with the Act and at all times remain accountable to the municipality;
(b) that would not impede the entity from performing its operational responsibilities.
5.1.10 terms of regulation 4(1) of the MBRR, the Mayor must establish a Budget Steering Committee to provide technical assistance with regard to the budget process and related matters. Such a committee must consist of at least the following people:
(a) MMC for Finance (b) The City Manager (c) The CFO
Page 5 of 5 (d) Senior managers responsible for at least the three largest votes in the municipality
(e) The manager responsible for budgeting (f) The manager responsible for planning (g) Technical experts on infrastructure
5.2 Role of the Accounting Officer (Municipal Manager)
The Municipal Manager is the accounting officer and the administrative authority for the municipality. The City Manager is accountable to the Executive Mayor for the implementation of specific agreed outputs. The City Manager is also accountable to Council for the overall administration of the municipality.
The City Manager must be fully aware of the reforms required in order to provide the Executive Mayor, councillors, senior officials and municipal entities with the appropriate guidance and advice on financial and budget issues. Whilst the City Manager may delegate many tasks to the Chief Financial Officer or other senior officials, this must be done carefully to ensure that all tasks are completed appropriately.
The Accounting Officer (City Manager) must-
5.2.1 Assist the Mayor in performing the budgetary functions assigned to the Mayor in terms of chapters 4 and 7 of the MFMA;
5.2.2 Provide the Mayor with the administrative support, resources and information necessary for the performance of those functions.
5.2.3 Implement the municipal's approved budget, including taking all reasonable steps to ensure that the spending of funds is in accordance with the budget and is reduced if necessary when revenue is anticipated to be less than projected in the budget or
SDBIP;
5.2.4 Ensure that revenue and expenditure are properly monitored.
5.2.5 When necessary, the accounting officer must prepare an adjustments budget and submit it to the Mayor for consideration
and tabling in Council.
5.2.6 Report to Council any shortfalls in budget revenue, overspending and necessary steps taken to prevent shortfalls or overspending.
5.2.7 Submit to the Mayor actual revenue, borrowings, expenditure and where necessary report on variances on the approved budget.
5.2.8 By 25 January of each year assess the performance of the
municipality during the first half of the financial year, and submit a report on such assessment to the Mayor, the National Treasury and the Provincial Treasury.
5.2.9 Such an assessment should take into account the following:
(a) The monthly statements referred to in section 71 of the Act for the first half of the financial year;
(b) The municipality’s service delivery performance during the first half of the financial year, and service delivery targets
implementation plan;
(c) The past year’s annual report, and progress on resolving problems identified in the annual report; and
(d) The performance of every municipal entity under the sole or shared control of the municipality, taking into account reports in terms of section 88 of the Act from any such entities.
5.3 Role of the Chief Financial Officer (CFO)
The Chief Financial Officer is the administrative head of the Budget and Treasury Office. The CFO has an essential function of assisting the City Manager to carry out his or her financial management responsibilities, in areas ranging from budget preparation to financial reporting and the development and maintenance of internal control procedures. The CFO plays a central role in implementing financial reforms at the direction of the City Manager with the assistance of appropriately skilled staff.
The CFO of a municipality-
5.3.1 is administratively in charge of the Budget and Treasury Office;
5.3.2 must advice the accounting officer on the exercise of powers and duties assigned to the accounting officer in terms of the MFMA;
5.3.3 must assist the accounting officer in the administration of the municipality’s bank accounts and in the preparation and implementation of the municipality’s budget;
5.3.4 must advise senior managers and other senior officials in the exercise of powers and duties assigned to them in terms of section 78 or delegated to them in terms of section 79 of the Act;
and
5.3.5 must perform such budgeting, accounting, analysis, financial reporting, cash management, debt management, supply chain management, financial management, review and other duties as may in terms of section 79 be delegated by the accounting officer to the chief financial officer
The CFO is accountable to the accounting officer for the performance of the duties outlined above.
5.4 The role of senior managers and other officials
According to section 78 of the MFMA, the following are the roles to be carried out by the senior managers and other officials:
5.4.1 Ensure that the system of financial management and internal controls established for the municipality is carried out diligently.
5.4.2 Ensure that resources of the municipality are utilised effectively efficiently, economically and transparently.
5.4.3 Prevent unauthorised, irregular or fruitless and wasteful expenditure and other losses.
5.4.4 Collection of revenue.
Page 7 of 5 5.4.5 Safeguarding and maintenance of assets.
5.4.6 Submission of information to the accounting officer for compliance with the Act.
5.5 Role of the Chief Executive Officer (CEO)
The CEO of a municipal entity is the accounting officer of that entity. Sections 93- 107 of the Act detail the roles and responsibilities of the CEO in the following broad categories:
• Fiduciary duties;
• General financial management of the entity;
• Asset and liability management;
• Revenue management;
• Monthly reconciliation of revenue and accounts;
• Expenditure management;
• Budget implementation; and
• Reporting.