Acts Online
GT Shield

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

Chapter 10 : Municipal Entities

Part 3 : Accounting officers

97. Revenue management

 

(1) The accounting officer of a municipal entity must take all reasonable steps to ensure—
(a) that the entity has and implements effective revenue collection systems to give effect to its budget;
(b) that all revenue due to the entity is collected;
(c) that any funds collected by the entity on behalf of a municipality—
(i) are transferred to that municipality strictly in accordance with the agreement between the entity the municipality; and
(ii) are not used for the purposes of the entity;
(d) that the municipal entity has effective revenue collection systems consistent with those of the parent municipality;
(e) that revenue due to the entity is calculated on a monthly basis;
(f) that accounts for service charges are prepared on a monthly basis, or less often as may be prescribed where monthly accounts are uneconomical;
(g) that all money received is promptly deposited in accordance with this Act into the municipal entity's bank accounts;
(h) that the municipal entity has and maintains a management, accounting and information system which—
(i) recognizes revenue when it is earned;
(ii) accounts for debtors; and
(iii) accounts for receipts of revenue;
(i) that the municipal entity has and maintains a system of internal control in respect of debtors and revenue, as may be prescribed; and
(j) that all revenue received by the municipal entity, including revenue received by any collecting agent on its behalf, is reconciled at least on a weekly basis.

 

(2) The accounting officer must immediately inform the parent municipality of any payments due by an organ of state to the entity in respect of service charges, if such payments are regularly in arrears for periods of more than 30 days.