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Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)

Chapter 7 : Responsibilities of Mayors

54. Budgetary control and early identification of financial problems

 

(1) On receipt of a statement or report submitted by the accounting officer of the municipality in terms of section 71 or 72, the mayor must—
(a) consider the statement or report;
(b) check whether the municipality's approved budget is implemented in accordance with the service delivery and budget implementation plan;
(c) consider and, if necessary, make any revisions to the service delivery and budget implementation plan, provided that revisions to the service delivery targets and performance indicators in the plan may only be made with the approval of the council following approval of an adjustments budget;
(d) issue any appropriate instructions to the accounting officer to ensure—
(i) that the budget is implemented in accordance with the service delivery and budget implementation plan; and
(ii) that spending of funds and revenue collection proceed in accordance with the budget:
(e) identify any financial problems facing the municipality, including any emerging or impending financial problems; and
(f) in the case of a section 72 report, submit the report to the council by 31 January of each year.

 

(2) If the municipality faces any serious financial problems, the mayor must—
(a) promptly respond to and initiate any remedial or corrective steps proposed by the accounting officer to deal with such problems, which may include—
(i) steps to reduce spending when revenue is anticipated to be less than projected in the municipality's approved budget;
(ii) the tabling of an adjustments budget; or
(iii) steps in terms of Chapter 13; and
(b) alert the council and the MEC for local government in the province to those problems.

 

(3) The mayor must ensure that any revisions of the service delivery and budget implementation plan are made public promptly.