Quarterly Budget & Performance Assessment Report (MFMA/Preliminary) – March 2020

MUNICIPAL FINANCE MANAGEMENT ACT (MFMA): PRELIMINARY BUDGET AND PERFORMANCE ASSESSMENT REPORT IN TERMS OF THE MFMA, SECTION 52(d), FOR THE QUARTER ENDED 31 MARCH 2020

The purpose of this report is to inform Council of the municipality’s third quarters actual performance (2019/20 financial year) against the approved adjustment budget in compliance with Section 52 (d) of the MFMA and the requirements as promulgated in the Government Gazette No 32141 of 17 April 2009, by providing a statement on the implementation of the budget and financial state of affairs of the municipality to the Executive Mayor, as legislated.

The strategic objective of this report is to ensure good governance, financial viability and optimal institutional transformation with capacity to execute its mandate.

Section 52(d) of the MFMA and Section 28 of Government Gazette Notice 32141 dated 17 April 2009, regarding the “Local Government: Municipal Finance Management Act of 2003 and Municipal Budget and Reporting Regulations” necessitates that specific financial particulars be reported on and in a prescribed format, hence this report to meet legislative compliance.

In terms of section 52(d) of the MFMA, “The mayor of a municipality –
must, within 30 days of the end of each quarter, submit a report to the council on the implementation of the budget and the financial state of affairs of the municipality;”

In terms of section 71(1) of the MFMA
“The accounting officer of a municipality must by no later than 10 working days after the end of each month submit to the mayor of the municipality and the relevant provincial treasury a statement in the prescribed format on the state of the municipality’s budget reflecting the following particulars for that month and for the financial year up to the end of that month:…… “
Furthermore Section 31(1) prescribes the following:
“The mayor’s quarterly report on the implementation of the budget and financial state of affairs of the municipality as required by Section 52(d) of the Act must be –

(a) In the format specified in Schedule C and include all the required tables charts and explanatory information, taking into account any guidelines issued by the Minister in terms Section 168(1) if the Act; and
(b) Consistent with the monthly budget statement for September, December, March and September as applicable: and
(c) Submitted to the National Treasury and relevant Provincial Treasury within five (5) days of tabling of the report in the council.