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Notice: Doornkloof Owners Association (DKOA)
 

Municipal Finance Management Act
Johannesburg complying with new laws

Please see articles below and note in particular the sections that read: 

1) "The aim of the act - according to Finance Minister Trevor Manuel - is "to modernise budget and financial management, and to ensure greater transparency and
accountability in the finances of municipalities".

2) "The act also requires municipalities to table quarterly reports on their spending and revenue."

3) " ..the act stipulates that councillors and the public must be notified of intended borrowing 21 days before the council sits to consider the matter."

4) "...city already complies with the provision that municipalities publish all budget and the IDP documents on their websites."
 

Kind regards,

David Larsen

Secretary: Doornkloof Owners Association (DKOA)

PLEASE ADVISE AT LEAST THREE OTHER PROPERTY OWNERS OF THE CONTENTS OF THIS NOTICE AND ASK THEM IN TURN TO ADVISE
THREE OTHERS
 
 



 
Johannesburg complying with new laws

By Thomas Thale

The City of Johannesburg has already introduced many of the changes required by the Municipal Finance Management Act, which comes into effect on July 1.

Some provisions of the act will, however, be phased in over time.

Bethuel Jwili, who is co-ordinating this legislation for the City, says a gap analysis instituted in March has concluded that the City is "largely complying with the provisions of the act".

The aim of the act - according to Finance Minister Trevor Manuel - is "to modernise budget and financial management, and to ensure greater transparency and accountability in the finances of municipalities".

The act also sets out to standardise financial management in all government departments and entities.

Manuel says the Treasury has conducted "a series of workshops across all nine provinces" involving more than 2,000 officials and councillors.

"The workshops provided a forum for extensive training, discussion and consultation on the reforms contained in the act."

Jwili says the Treasury has been monitoring the City - one of its pilot municipalities for the phasing in of the act - since 2001. "We have been hard at work, changing systems since then," says Jwili.

Jwili says the City had already changed from the fund-accounting system to the generally accepted municipal accounting principle (Gamap).

"We are now busy preparing financial statements in terms of Gamap," says Jwili.

Manuel says some provisions of the act "require transparency in budget and budgeting processes, as well as uniform treasury norms and standards".

The act also requires municipalities to table quarterly reports on their spending and revenue.

One of the major adjustments the City will have to make is in its budgetary process. The act requires the formulation of the budget to be put in motion 10 months sooner. Public participation in the budget and in the Integrated Development Plan would also begin earlier.

The mayor will have to table his proposed budget 90 days sooner. The budget has to be approved by the council 30 days before it comes into effect.

Jwili says the council will have no problem bringing the processes forward.

As for new debts, the act stipulates that councillors and the public must be notified of intended borrowing 21 days before the council sits to consider the matter.

Jwili says the City has no problem complying with the requirement that it have one primary bank account.

He also says the City already complies with the provision that municipalities publish all budget and the IDP documents on their websites.

The act promises to usher in a new era of transparency and accountability for municipalities.

Johannesburg News Agency
 
 


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