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Table of Contents
Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003)
Notice No. 176 of 2004
Act
Chapter 1 : Interpretation, Object, Application and Amendment of Act
1. Definitions
2. Object of Act
3. Institutions to which Act applies
4. Amendments to Act
Chapter 2 : Supervision over Local Government Finance Management
5. General functions of National Treasury and provincial treasuries
6. Delegations by National Treasury
Chapter 3 : Municipal Revenue
Part 1 : Municipal bank accounts
7. Opening of bank accounts
8. Primary bank account
9. Bank account details to be submitted to provincial treasuries and Auditor-General
10. Control of municipal bank accounts
11. Withdrawals from municipal bank accounts
12. Relief, charitable, trust or other funds
Part 2 : Cash, investment and asset management
13. Cash management and investments
14. Disposal of capital assets
Chapter 4 : Municipal Budgets
15. Appropriation of funds for expenditure
16. Annual budgets
17. Contents of annual budgets and supporting documents
18. Funding of expenditure
19. Capital projects
20. Matters to be prescribed
21. Budget preparation process
22. Publication of annual budgets
23. Consultations on tabled budgets
24. Approval of annual budgets
25. Failure to approve budget before start of budget year
26. Consequences of failure to approve budget before start of budget year
27. Non-compliance with provisions of this Chapter
28. Municipal adjustments budgets
29. Unforeseen and unavoidable expenditure
30. Unspent funds
31. Shifting of funds between multi-year appropriations
32. Unauthorised, irregular or fruitless and wasteful expenditure
33. Contracts having future budgetary implications
Chapter 5 : Co-Operative Government
34. Capacity building
35. Promotion of co-operative government by national and provincial institutions
36. National and provincial allocations to municipalities
37. Promotion of co-operative government by municipalities
38. Stopping of funds to municipalities
39. Stopping of equitable share allocations to municipalities
40. Stopping of other allocations to municipalities
41. Monitoring of prices and payments for bulk resources
42. Price increases of bulk resources for provision of municipal services
43. Applicability of tax and tariff capping on municipalities
44. Disputes between organs of state
Chapter 6 : Debt
45. Short-term debt
46. Long-term debt
47. Conditions applying to both short-term and long-term debt
48. Security
49. Disclosure
50. Municipal guarantees
51. National and provincial guarantees
Chapter 7 : Responsibilities of Mayors
52. General responsibilities
53. Budget processes and related matters
54. Budgetary control and early identification of financial problems
55. Report to provincial executive if conditions for provincial intervention exist
56. Exercise of rights and powers over municipal entities
57. Municipalities which do not have mayors
58. Municipalities with executive committees
59. Delegations of mayoral powers and duties
Chapter 8 : Responsibilities of Municipal Officials
Part 1 : Accounting officers
60. Municipal managers to be accounting officers
61. Fiduciary responsibilities of accounting officers
62. General financial management functions
63. Asset and liability management
64. Revenue management
65. Expenditure management
66. Expenditure on staff benefits
67. Funds transferred to organisations and bodies outside government
68. Budget preparation
69. Budget implementation
70. Impending shortfalls, overspending and overdrafts
71. Monthly budget statements
72. Mid-year budget and performance assessment
73. Reports on failure to adopt or implement budget-related and other policies
74. General reporting obligation
75. Information to be placed on websites of municipalities
76. Protection of accounting officer
Part 2 : Financial administration
77. Top management of municipalities
78. Senior managers and other officials of municipalities
79. Delegations
Chapter 9 : Municipal Budget and Treasury Offices
80. Establishment
81. Role of chief financial officer
82. Delegations
83. Competency levels of professional financial officials
Chapter 10 : Municipal Entities
Part 1 : Establishment
84. Financial implications for municipalities
Part 2 : Financial governance
85. Bank accounts
86. Bank account details
87. Budgets
88. Mid-year budget and performance assessment
89. Remuneration packages
90. Disposal of capital assets
91. Financial year
92. Audit
Part 3 : Accounting officers
93. Chief executive officer to be accounting officer
94. Fiduciary duties of accounting officers
95. General financial management functions of accounting officers
96. Asset and liability management
97. Revenue management
98. Monthly reconciliation of revenue and accounts
99. Expenditure management
100. Budget implementation
Part 4 : Reports and reportable matters
101. Impending under collection, shortfalls, overspending, overdrafts, and nonpayment
102. Irregular or fruitless and wasteful expenditure
103. Reporting of improper interference by councillors
104. General reporting obligations
Part 5 : Other officials of municipal entities
105. Duties of other officials
106. Delegation of powers and duties by accounting officers
107. Competency levels of professional financial officials
Part 6 : General
108. Borrowing of money
109. Financial problems in municipal entities
Chapter 11 : Goods and Services
Part 1 : Supply chain management
110. Application of this Part
111. Supply chain management policy
112. Supply chain management policy to comply with prescribed framework
113. Unsolicited bids
114. Approval of tenders not recommended
115. Implementation of system
116. Contracts and contract management
117. Councillors barred from serving on municipal tender committees
118. Interference
119. Competency levels of officials involved in municipal supply chain management
Part 2 : Public-private partnerships
120. Conditions and process for public-private partnerships
Chapter 12 : Financial Reporting and Auditing
121. Preparation and adoption of annual reports
122. Preparation of financial statements
123. Disclosures on intergovernmental and other allocations
124. Disclosures concerning councillors, directors and officials
125. Other compulsory disclosures
126. Submission and auditing of annual financial statements
127. Submission and tabling of annual reports
128. Compliance to be monitored
129. Oversight reports on annual reports
130. Council meetings open to public and certain public officials
131. Issues raised by Auditor-General in audit reports
132. Submissions to provincial legislatures
133. Consequences of non-compliance with certain provisions
134. Annual report to Parliament
Chapter 13 : Resolution of Financial Problems
Part 1 : Identification of financial problems
135. Primary responsibility for resolution of financial problems
Part 2 : Provincial interventions
136. Types of provincial interventions
137. Discretionary provincial interventions
138. Criteria for determining serious financial problems
139. Mandatory provincial interventions arising from financial crises
140. Criteria for determining serious or persistent material breach of financial commitment
141. Preparation of financial recovery plans
142. Criteria for financial recovery plans
143. Approval of financial recovery plans
144. Amendment of financial recovery plans
145. Implementation of financial recovery plans in discretionary provincial interventions
146. Implementation of financial recovery plans in mandatory provincial interventions
147. Regular review of provincial interventions
148. Termination of provincial interventions
149. Access to information, records and documents of municipalities
150. National interventions
Part 3 : Debt relief and restructuring
151. Legal rights
152. Application for stay of legal proceedings
153. Application for extraordinary relief
154. Suspension of financial obligations
155. Termination of financial obligations and settlement of claims
156. Matters to be prescribed
Part 4 : Municipal Financial Recovery Service
157. Establishment
158. Functions and powers
159. Appointment of Head
160. Responsibilities of Head
161. Staff
162. Delegations
Chapter 14 : General Treasury Matters
163. Liabilities and risks payable in foreign currencies
164. Forbidden activities
165. Internal audit unit
166. Audit committees
167. Councillors' remuneration
168.Treasury regulations and guidelines
169. Consultative processes before promulgation of regulations
170. Departures from treasury regulations or conditions
Chapter 15 : Financial Misconduct
Part 1 : Disciplinary proceedings
171. Financial misconduct by municipal officials
172. Financial misconduct by officials of municipal entities
Part 2 : Criminal proceedings
173. Offences
174. Penalties
Part 3 : General
175. Regulations on financial misconduct procedures and criminal proceedings
Chapter 16 : Miscellaneous
176. Liability of functionaries exercising powers and functions in terms of this Act
177. Delays and exemptions
178. Transitional provisions
179. Repeal and amendment of legislation
180. Short title and commencement
Schedule
Repeal and Amendment of Legislation
Regulations
Municipal Supply Chain Management Regulations, 2005
Notice No. 868 of 2005
1. Definitions
Chapter 1: Establishment and Implementation of Supply Chain Management Policies
2. Supply chain management policies
3. Adoption and amendment of supply chain management policies
4. Delegation of supply chain management powers and duties
5. Subdelegations
6. Oversight role of council of municipality or board of directors of municipal entity
7. Supply chain management units
8. Training of supply chain management officials
Chapter 2: Framework for Supply Chain Management Policies
9. Format of supply chain management policy
Part 1: Demand management
10. System of demand management
Part 2: Acquisition management
11. System of acquisition management
12. Range of procurement process
13. General preconditions for consideration of written quotations or bids
14. Lists of accredited prospective providers
15. Petty cash purchases
[Deleted] 16. Written or verbal quotations
17. Formal written price quotations
18. Procedures for procuring goods or services through formal written price quotations
19. Competitive bids
20. Process for competitive bidding
21. Bid documentation for competitive bids
22. Public invitation for competitive bids
23. Procedure for handling, opening and recording of bids
24. Negotiations with preferred bidders
25. Two-stage bidding process
26. Committee system for competitive bids
27. Bid specification committees
28. Bid evaluation committees
29. Bid adjudication committees
30. Procurement of banking services
31. Procurement of IT related goods or services
32. Procurement of goods and services under contracts secured by other organs of state
33. Procurement of goods necessitating special safety arrangements
34. Proudly SA Campaign
35. Appointment of consultants
36. Deviation from, and ratification of minor breaches of, procurement processes
37. Unsolicited bids
38. Combating of abuse of supply chain management system
Part 3: Logistics, Disposal, Risk and Performance Management
39. Logistics management
40. Disposal management
41. Risk management
42. Performance management
Part 4: Other Matters
43. Prohibition on awards to persons whose tax matters are not in order
44. Prohibition on awards to persons in the service of the state
45. Awards to close family members of persons in the service of the state
46. Ethical standards
47. Inducements, rewards, gifts and favours to municipalities, municipal entities, officials and other role players
48. Sponsorships
49. Objections and complaints
50. Resolution of disputes, objections, complaints and queries
51. Contracts providing for compensation based on turnover
52. Commencement
Municipal Cost Containment Regulations, 2019
Notice 317 of 2019
1. Definitions
2. Object of Regulations
3. Application of Regulations
4. Cost containment policies
5. Use of consultants
6. Vehicles used for political office-bearers
7. Travel and subsistence
8. Domestic accommodation
9. Credit cards
10. Sponsorships, events and catering
11. Communication
12. Conferences, meetings and study tours
13. Other related expenditure items
14. Enforcement procedures
15. Disclosures of cost containment measures
16. Short title and commencement
Exemption from Regulations 4(3) and 29(2) of Municipal Supply Chain Management Regulations, 2005
Notice No. 503 of 2020
Notices
Exemption from Act
Notice No. 851 of 2020
Exemption from Act
Purchase
Notice No. 851 of 2020
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