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

Chapter 8 : Responsibilities of Municipal Officials

Part 1 : Accounting officers

64. Revenue management


(1) The accounting officer of a municipality is responsible for the management of the revenue of the municipality.


(2) The accounting officer must for the purposes of subsection (1) take all reasonable steps to ensure—
(a) that the municipality has effective revenue collection systems consistent with section 95 of the Municipal Systems Act and the municipality’s credit control and debt collection policy;
(b) that revenue due to the municipality is calculated on a monthly basis;
(c) that accounts for municipal tax and charges for municipal services are prepared on a monthly basis, or less often as may be prescribed where monthly accounts are uneconomical;
(d) that all money received is promptly deposited in accordance with this Act into the municipality’s primary and other bank accounts;
(e) that the municipality has and maintains a management, accounting and information system which—
(i) recognises revenue when it is earned;
(ii) accounts for debtors; and
(iii) accounts for receipts of revenue;
(f) that the municipality has and maintains a system of internal control in respect of debtors and revenue, as may be prescribed;
(g) that the municipality charges interest on arrears, except where the council has granted exemptions in accordance with its budget-related policies and within a prescribed framework: and
(h) that all revenue received by the municipality, including revenue received by any collecting agent on its behalf, is reconciled at least on a weekly basis.


(3) The accounting officer must immediately inform the National Treasury of any payments due by an organ of state to the municipality in respect of municipal tax or for municipal services, if such payments are regularly in arrears for periods of more than 30 days.


(4) The accounting officer must take all reasonable steps to ensure—
(a) that any funds collected by the municipality on behalf of another organ of state is transferred to that organ of state at least on a weekly basis; and
(b) that such funds are not used for purposes of the municipality.