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Umlalazi

Municipal Directorate

Financial Services

Responsible financial management, revenue administration, budgeting, asset management and procurement that support sustainable municipal service delivery.

Directorate Overview

Managing Municipal Finances Responsibly and Efficiently

The Directorate Financial Services is responsible for the delivery of all financial-related services to the Municipality.

This includes strategic financial guidance, budgeting, financial statements, asset and fleet management, expenditure management, salaries and wages, income and account services, and supply chain management services.

The aim of the Directorate is to keep the financial position of the Municipality stable and to ensure that it remains able to meet its financial commitments while rendering economically viable services to the community on an effective and efficient basis.

To maintain a high standard of financial services, the Municipality must comply with legislation, legal prescripts, policies and regulations, supported by competent and motivated personnel.

Functional Responsibilities

Key Financial Service Areas

Financial Services manages the Municipality’s financial compliance, assets, budgets, expenditure, fleet, revenue and procurement functions.

01

Financial Compliance

  • Compile and control the Council’s budget
  • Keep the assets register
  • Compile the Financial Statements of the Council
  • Compile all reports in terms of legislation
  • Supply Chain Management
  • Control all purchasing systems
  • Manage the Council’s Stores
02

Asset Management

  • Manage all municipal movable and immovable assets
  • Compile, update and maintain the municipal asset register
  • Reconcile the Asset Register to the General Ledger monthly
  • Manage unauthorised expenditure related to asset management
  • Manage disposal of assets according to Supply Chain Management requirements
  • Develop asset management plans with other business units
  • Compile the asset note to Annual Financial Statements
  • Manage verification and condition assessment of municipal assets
03

Budget & Financial Reporting

  • Compilation of In-year Reporting (s71)
  • Compilation of Mid-year Assessment Report (s72)
  • Compilation of Adjustments Budget
  • Compilation of Annual Budget
  • Compilation of Interim and Annual Financial Statements
  • Supporting departments with budget enquiries
  • Reporting to Provincial and National Treasury on financial and non-financial matters
04

Expenditure

  • Control all payments of the Council
  • Administer and monitor conditional and unconditional grant expenditure
  • Manage compliance with tax, levies, pension, medical aid, audit fees and statutory commitments
  • Administer the petty cash system
  • Manage salaries and allowance payments of staff and councillors
  • Cash and Investment Management
  • Monthly and Annual Reporting on expenditure-related matters
05

Fleet Management

  • Vehicle Fleet Maintenance and repairs
  • Roadworthiness and registration of new vehicles
  • Daily requests regarding vehicle service and repairs
  • Services and COR preparations
  • Vehicle movement monitoring through tracking systems
06

Revenue

  • Meter reading
  • Data capturing on debtor accounts
  • Billing
  • Collection of municipal monies
  • Credit control and debt collection administration
  • Public enquiries and correspondence
  • Valuation Roll Management and Property Rates Management
  • Budgeting for Property Rates, Refuse and Electricity
  • Cash receipting for municipal accounts
  • Sale of prepaid electricity
  • Indigent management
  • Monthly and Annual Reporting
Supply Chain Management

Transparent and Compliant Procurement Processes

Supply Chain Management coordinates municipal procurement, competitive bidding, contracts, inventory and reporting in line with approved municipal processes and applicable legislation.

01

Formal Quotations Above R2 000 up to R30 000

  • Verify that sufficient budget is available
  • Approve the request on the system
  • Allocate requests to procurement officers
  • Obtain quotations from at least three service providers
  • Verify Central Supplier Database and municipal database registration
  • Verify requisitions and process purchase orders
  • Send purchase orders to the service provider and user department
02

Quotations Above R30 000 up to R200 000

  • Draft bid or quotation documents
  • Publish opportunities on the municipal website and notice boards for 7 days
  • Obtain quotations from at least three service providers
  • Verify supplier registration and compliance
  • Conduct bid or quotation closing and opening processes
  • Stamp and sign quotation documents received
  • Record responses on the closing register
  • Check completeness of quotation documents and MBD forms
  • Verify CSD compliance
  • Apply 80/20 preference calculations where applicable
  • Confirm tax compliance before award
  • Upload documents for approval and purchase order processing
  • Receive goods and complete system receipting
  • Forward procurement files to expenditure for payment
03

Competitive Bidding

  • User department compiles specifications for the required need
  • SCM consolidates specifications with the bid document
  • Bid Specification Committee reviews and approves specifications
  • Prepare and publish tender advertisements
  • Conduct compulsory briefing sessions where required
  • Receive tenders and supporting documents through the tender box
  • Open tenders after the tender period has closed
  • Stamp and sign tender front and price pages
  • Record all tenders received in the closing register
  • Publish tender entries on the municipal website
  • Arrange Bid Evaluation Committee sittings
  • Verify sufficient budget availability
  • Arrange Bid Adjudication Committee sittings
  • Prepare notice of intention to award
  • Prepare appointment letters after the objection period has lapsed
04

Contract Management

  • Update the contract register continuously
  • Prepare Service Level Agreements (SLAs)
  • Send reminders to end users for contracts expiring within the next 6 months
05

Stores / Inventory Management

  • Monitor stock order levels and reorder when necessary
  • Issue stock to end-user departments
  • Capture requisitions in the municipal system
  • Conduct quarterly stock balancing
06

Reporting

  • Prepare monthly reports
  • Prepare quarterly reports
  • Report to Provincial Treasury
  • Report to the Finance Portfolio Committee
  • Report to Council
Financial Services

Supporting Financial Stability and Accountability

The Directorate provides the systems, controls and financial oversight required to protect municipal resources and support sustainable service delivery.

01 Financial Compliance
02 Asset Management
03 Budget & Reporting
04 Expenditure
05 Revenue
06 Supply Chain Management
Financial Services

Sound financial management for a stable, accountable and sustainable municipality.