Finance
Whether his Department supports municipalities with the preparation of budgets; if not, why not, if so, (a) how far does the support go with regard to each of the municipalities, including any financial support and (b) to what extent is the effective implementation of the budget being managed and monitored?
Yes, the Provincial Treasury supports municipalities with the preparation of their budgets;
a) Support is provided to municipalities which are informed by individual requests from municipalities or assessments done by the Department based on historic trends as informed by institutional processes such as the LG MTEC 3 process. This includes hands-on support provided to amongst others Hessequa and Beaufort West municipalities. In addition, over the past two financial years, the Department also provided accredited training via the University of Stellenbosch (USB-ED) to all municipalities in the Province on the completion of the prescribed budget schedules.
The Department did not provide any direct financial support to municipalities to assist with the compilation of the annual budgets but the Vote provided financial assistance totalling R15. 369 million in 2013/14 to municipalities via the Western Cape Finance Management Support Grant to amongst other develop budget related policies, long-term financial plans, etc. that informed the annual budgeting process.
b) The Provincial Treasury monitors the monthly implementation of budgets in terms of Section 71 of the MFMA. In this regard variances identified between what municipalities projected to collect and what they are actually collecting on a monthly basis is followed up. To this end, municipal budget performance results are published quarterly, monthly/quarterly IYM letters are issued and site visits to municipalities are also undertaken.
Through the visits as well as LG MTEC 3 engagements, Provincial Treasury provides support and information to municipalities. A financial health assessment is done as part of the annual budget assessment process which includes revenue management analysis to assess the adequacy of municipal own revenue.
Policy recommendations concerning the impact of the prevailing economic conditions on service delivery are also discussed during the LG MTEC 3 engagements before budgets were approved for the next financial year. Recommendations concerning the municipalities’ ability to counter and minimise recessionary impacts on service delivery formed part of the consultation processes related to planning and budgeting.
