FINANCIAL FITNESS
BY CHARNDRÉ EMMA KIPPIE
Understanding municipal financial management Good financial management is essential for effective local delivery - here’s what you need to know
W
ith so many demands for bettering our nation, financial management is critical for our local municipalities to be equipped for making a positive impact on local areas transforming our land into a better place for all citizens. Councillors and members of the community dream of ‘ideal’ changes, however, these must be properly planned for in order to make a significant difference. Councilors are tasked with the responsibility of approving and regularly tracking a municipality’s budget and spending behaviours. This task is completed in consultation with ward committees in order to maintain high standards. The
reality, however, is that large amounts of funds are needed to execute all plans and projects in order for councilors to serve their communities. This is where effective financial management plays a vital role.
The approval of the budget is one of the most important tasks undertaken by councillors
The role of financial management Municipal financial management makes sure that sufficient funds are available to execute council policies.
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Councillors, committee members and government officials oversee these funds, making sure that these monies are handled attentively, with full transparently. Good financial management is the driving force behind local delivery – local activists and ward committee members are required to properly understand municipal finance and budgets so that they’re able to engage councillors on important conversations regarding spending and development priorities. Processes used in municipalities At present, the following financial management processes are used and tracked in local South African municipalities:
