After the municipal council approves the budget, the Budget and Treasury Office (BTO) ensures that each director within the municipality manages their own budget. On a weekly basis cash flow plans as well as expenditure plans are distributed amongst directors to avoid over expenditure on budget votes. Councillors also play an oversight role due to the fact that expenditure reports are tabled to the council on a quarterly basis.
2. Three (3) municipalities reported in line with Section 32 of Local Government Municipal Finance Management Act, expenditures to MEC: Cooperative Governance, Human Settlements and Traditional Affairs in Northern Cape in the last financial year. The municipalities which reported are Tsantsabane Local Municipality, Sol Plaatjie Local Municipality and ZF Mgcawu District Municipality.
(a) Municipalities do not report regularly to the Province on unauthorised, irregular or fruitless and wasteful expenditure. Such expenditure is reported to council and the necessary steps are taken to recover the losses. The actual amount of unauthorised, irregular or fruitless and wasteful expenditure can only be determined at the end of the municipal financial year. Municipalities also reports to the National Treasury on a monthly basis in line with Section 71 of the Local Government Municipal Finance Management Act, Act 56 of 2003.
(b) Municipal Councils have the responsibility to recover monies from the responsible directors and political office bearers. In addition, where political leaders and senior officials are found to have ignored their mandates or disregard legislation, the Code of Conduct for Political Leaders and the procedures provided for in the Municipal Systems Act, 2000 (Act No 32 of 2000), as amended are invoked, respectively. Members of the Executive Council (MECs) have been sensitized on the matter and were urged to take the necessary steps to apply the said provisions, as and when required.