What is the purpose of the Municipal Finance management Act?

2020-11-27 by No Comments

What is the purpose of the Municipal Finance management Act?

The Local Government: Municipal Finance Management Act 56 of 2003 intends: to secure sound and sustainable management of the financial affairs of municipalities and other institutions in the local sphere of government; to establish treasury norms and standards for the local sphere of government; and.

What is the difference between PFMA and MFMA?

The PFMA applies to the national and provincial spheres of government, and the MFMA applies to the local sphere. While the MFMA differs considerably from the PFMA in detail, it shares the same broad objectives of promoting effective, efficient, transparent and accountable public sector financial management.

What Is Public Finance Management Act?

The Public Finance Management Act, No. 1 of 1999 and Regulations regulate the management of finances in national and provincial government. The Act aims to secure transparency, accountability and sound financial management in government and public institutions.

What is the Municipal Systems Act?

The Municipal Systems Act is part of a series of legislation which aims to empower local government to fulfil its Constitutional objects. Together, these pieces of legislation provide a framework for a democratic, accountable and developmental local government system, as envisaged by the Constitution.

What does PFMA focus on?

The PFMA enables accounting officers to manage but, at the same time, holds them accountable for the resources they use. It establishes clear lines of accountability and broad frameworks of best practices that managers can adopt or, where necessary, adapt.

What are the main functions of municipalities?

Municipalities are responsible for the following functions:

  • Electricity delivery.
  • Water for household use.
  • Sewage and sanitation.
  • Storm water systems.
  • Refuse removal.
  • Fire fighting services.
  • Municipal health services.
  • Decisions around land use.

What are the principles of public finance management?


  • No tax can be collected from taxpayers without their consent;
  • Utilisation of public financial resources must satisfy the collective needs;
  • Participatory democracy means direct participation by the taxpayers;
  • Public financial decision-making should be;

What is the Local Government Finance Management Act?


What are the requirements for Municipal Finance Management Act?

Implementation requirements CHAPTER 3 MINIMUM BUSINESS PROCESS AND SYSTEM REQUIREMENTS 6. Minimum business process requirements 7. Minimum system requirements CHAPTER 4 TECHNICAL COMMITTEE FOR STANDARD CHART OF ACCOUNTS 8. Establishment of Technical Committee for Standard Chart of Accounts

Who is the Minister of Finance for local government?

The Minister of Finance has,in terms of sections 168 and 175,of the Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003), and acting withthe concurrenceof theMinister of Cooperative Governance and Traditional Affairs, made the regulations as set out in the Schedule. 1.

What are the regulations for municipal supply chain management?

GoN R31, G. 40553 (c.i.o 20 January 2017). The Minister of Finance, acting with the concurrence of the Minister for Provincial and Local Government, has in terms of section 168 of the Local Government: Municipal Finance Management Act, 2003 (Act 56 of 2003), made the Regulations as set out in the Schedule. 1. Definitions