Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)Chapter 10 : Municipal EntitiesPart 4 : Reports and reportable matters101. Impending under collection, shortfalls, overspending, overdrafts, and nonpayment |
| (1) | The accounting officer of a municipal entity must report, in writing, to the board of directors of the entity, at its next meeting, and to the accounting officer of the entity’s parent municipality any financial problems of the entity, including— |
| (a) | any impending or actual— |
| (i) | under collection of revenue due; |
| (ii) | shortfalls in budgeted revenue; |
| (iii) | overspending of the entity’s budget; |
| (iv) | delay in the entity’s payments to any creditors; or |
| (v) | overdraft in any bank account of the entity for a period exceeding 21 days; and |
| (b) | any steps taken to rectify such financial problems. |
| (2) | The accounting officer of the municipality must table a report referred to in subsection (1) in the municipal council at its next meeting. |