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

Chapter 10 : Municipal Entities

Part 3 : Accounting officers

99. Expenditure management
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(1)The accounting officer of a municipal entity is responsible for the management of the expenditure of the entity.

 

(2)The accounting officer must for the purpose of subsection (1) take all reasonable steps to ensure—
(a)That the entity has and maintains an effective system of expenditure control including procedures for the approval, authorisation, withdrawal and payment of funds;
(b)that all money owing by the entity is paid within 30 days of receiving the relevant invoice or statement unless prescribed otherwise for certain categories of expenditure;
(c)that the entity has and maintains a management, accounting and information system which—
(i)recognises expenditure when it is incurred;
(ii)accounts for creditors of the entity; and
(iii)accounts for payments made by the entity;
(d)that the entity has and maintains a system of internal control in respect of creditors and payments;
(e)that payments by the entity are made—
(i)directly to the person to whom it is due unless agreed otherwise only for reasons as may be prescribed; and
(ii)either electronically or by way of non-transferable cheques, provided that cash payments and payments by way of cash cheques may be made for exceptional reasons only, and only up to a prescribed limit;
(f)that the entity complies with its tax, duty, pension, medical aid, audit fees and other statutory commitments;
(g)that the entity's available working capital is managed effectively and economically in terms of any prescribed cash management and investment framework; and
(h)that the entity has and implements a supply chain management policy in accordance with section 111 in a way that is fair, equitable, transparent and cost-effective.