Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)Chapter 8 : Responsibilities of Municipal OfficialsPart 1 : Accounting officers62. General financial management functions |
Financial management
| (1) | The accounting officer of a municipality is responsible for managing the financial administration of the municipality, and must for this purpose take all reasonable steps to ensure— |
| (a) | that the resources of the municipality are used effectively, efficiently and economically; |
| (b) | that full and proper records of the financial affairs of the municipality are kept in accordance with any prescribed norms and standards; |
| (c) | that the municipality has and maintains effective, efficient and transparent systems— |
| (i) | of financial and risk management and internal control; and |
| (ii) | of internal audit operating in accordance with any prescribed norms and standards; |
| (d) | that unauthorised, irregular or fruitless and wasteful expenditure and other losses are prevented; |
| (e) | that disciplinary or, when appropriate, criminal proceedings are instituted against any official of the municipality who has allegedly committed an act of financial misconduct or an offence in terms of Chapter 15; and |
| (f) | that the municipality has and implements— |
| (i) | a tariff policy referred to in section 74 of the Municipal Systems Act; |
| (ii) | a rates policy as may be required in terms of any applicable national legislation; |
| (iii) | a credit control and debt collection policy referred to in section 96(b) of the Municipal Systems Act; and |
| (iv) | a supply chain management policy in accordance with Chapter 11. |
| (2) | The accounting officer is responsible for and must account for all bank accounts of the municipality, including any bank account opened for— |
| (a) | any relief, charitable, trust or other fund set up by the municipality in terms of section 12; or |
| (b) | a purpose referred to in section 48(2)(d). |