Chief Finance Officer
Mr VC Makedama


Ms Onesimo Kili
Secretary

THE ROLE OF BUDGET AND TREASURY OFFICE

The department is responsible for providing strategic direction on financial planning, management and accounting as well as guidance and support to the senior managers within the Municipality regarding the implementation of and compliance with the Municipal. Finance Management Act and related Treasury Regulations. The Department is also responsible for the following:

  • Establish/maintain an efficient and transparent system of financial management and internal controls to ensure sound financial control by developing, implementing and monitoring financial control systems;
  • Establish/maintain appropriate policies, systems and procedures to ensure effective and efficient management of resources by maintaining updated financial guidelines and ensuring adherence to these policies & procedures;
  • Prepare financial statements for each financial year in accordance with the generally recognised accounting practices by ensuring the production of financial reports of the Municipality as well as providing oversight and management of reconciliations of sundry and suspense accounts;
  • Ensure that revenue and expenditure of the Municipality are in accordance with internal controls (budgets) and legislative prescripts governing finance within the Municipality by maximising revenue collections, optimising expenditure, monitoring cash flow as well as ensuring that expenditure is within allocation limits;
  • Follow up on the implementation of actions resulting from Audit Committee and Auditor-General’s reports by developing effective implementation strategy for implementation of corrective measures;
  • Effective management of Supply chain management.

SECTIONS

Mr Tinus Matthaysen
E-mail: tmatthaysen@ngqushwamun.gov.za

Manager: Mrs Nontombi Ndzungu
E-mail: jali@ngqushwamun.gov.za

Strategic Objective:

  • Implementing sound revenue and debt management practices through revenue maximisation.

Our revenue management deals with it is important that anticipated revenue levels are realistic for each revenue source and consistent with expenditure and collection experience. Municipal budgets must be funded and credible. The needs of the communities have to be met within the financial capacity and resource constraints of the municipality to ensure long term sustainability

Tariff setting plays a major role in ensuring certain levels of revenue according to affordability and to accommodate the consideration of basic services in the IDP strategic plan. The affordability of tariffs is under pressure due to increased cost and the increasing demand for bulk infrastructure and renewal of ageing infrastructure as Ngqushwa Local Municipality expands. Appropriate ways to restructure tariffs must be explored to encourage more efficient use of utility services and to generate the resources required to fund maintenance, renewal and expansion of infrastructure to provide services. Increases in tariffs must be closely linked to the National Treasury cost-of-living guidelines and reflect an appropriate balance between the interest of poor households, other customers and ensuring the financial sustainability of the municipality.

Refuse removal tariffs are mainly affected by high labor costs, petrol price increases and vehicle costs which are in many cases beyond Ngqushwa Local municipality’s control. In addition new ways need to be explored for alternative methods to manage the landfill site such as the revival of the recycling process and measures to prevent dumping, for example, garden refuse and removal.

Revenue enhancement and maintaining of existing revenue sources are essential for sustainable service delivery. Municipal budgets must be appropriately funded to ensure a financial going concern which is capable of providing and extending service delivery. It is essential that Ngqushwa Local municipality has an adequate source of revenue from it’s own operations and government grants to carry out our functions. The following actions are considered:

  • To seek alternative sources of own revenue to increase funding for capital projects.
  • Expand revenue base through the implementation of a new valuation roll.
  • The ability of the community to pay for services.
  • Identification and pursuance of government grants.
  • Tightening credit control measures and increase debt collection targets.
  • Improve customer relations and promote a culture of payment.
  • Realistic revenue estimates. Going back to basics to ensure MTREF are appropriately funded.
  • The impact of inflation, the municipal cost index and other cost increases.
  • Create an environment which enhances growth, development and service delivery.

Customer Billing

A new valuation roll will be implemented from 1 July 2017 and all newly rated properties will be phased out. Increased revenue from newly developed properties should expand and relieve some of the pressure on the municipality’s revenue base. The municipality conducts Supplementary Valuation on an annual basis to address gaps in the general valuation roll.

Citizens are currently only billed on monthly and annual basis for services they consume, and the City’s CSS results reflect positively on the accuracy and correctness of billing. However, such accuracy and correctness of billing remain dependent on the input uploaded by the utility and service departments. Internal billing controls are in place to identify material variances. Invoices are consolidated, displaying itemized and clearly indicated charges.

Finding out where our finances are going often starts by analyzing where we’ve been. The first step in assessing the financial condition of the municipality is to begin gathering information that is correlated to these environmental and organizational factors. Some of this information should be available using our own accounting and budgeting systems

  • Population trends
  • Median household income levels
  • Unemployment rates
  • Property full value trends
  • Levels of indigent households

Debt Collection

The continuous strict implementation of the credit control policy should result that Ngqushwa Local Municipality could maintain an exceptional payment rate.

It is however envisaged that with on-going economic pressures and increasing rate in unemployment the payment rate might become under pressure. Therefore special attention must be paid on managing all revenue and cash streams especially debtors as well as the creation of new revenue streams. The debtors turnover rate is at 2015/16 was at and 2016/17 is at Revenue management collection.

Manager: Ms Ntombentsha Doloni
E-mail: Dolonin@ngqushwamun.gov.za

Strategic Objective:

  • Ensuring sound financial planning and reporting through budget management best practices and interdepartmental coordination.

Section 153 of the Constitution requires that ‘a municipality must structure and manage its administration and budgeting and planning processes to give priority to the basic needs of the community, and to promote the social and economic development of the community’. The MFMA, together with the Municipal Systems Act (2000), aims to facilitate compliance with this constitutional duty by ensuring that municipalities’ priorities, plans, budgets, implementation actions and reports are properly aligned.

The Municipal Budget and Reporting Regulations came into effect on 1 July 2009. Their primary purpose is to regulate the format and content of annual budgets, adjustment budgets and in-year reports to promote greater transparency and facilitate the alignment of policy priorities, plans, budgets and reports.

Financial management strategies are important to guide Ngqushwa Local Municipality to maximise the available financial resources to ensure long-term financial viability through the following strategies that are utilised in the development of a five-year financial plan covering the lifespan of this Integrated Development Plan:

  • Well, thought-out budgetary and financial planning processes in line with budget and reporting regulation.
  • Effective cash flow management.
  • Ensure compliance with prescribed accounting standards and adherence to all legislation requirements.
  • Prepare annual financial statements according to accounting framework and review performance and achievements for past financial year.
  • Ensure 100% spending of government conditional grants to prevent withholding of equitable share.
  • Rolling out the Municipal Standard chart of accounts.
  • Direct available financial resources towards meeting the projects as identified in the IDP.

In line with National Treasury operational programs, the municipality will roll out the Municipal Standard Chart of Accounts (mSCOA) for budgeting, operational and reporting purposes with effect from the 2017/18 financial year.

Manager: Mr Ntuthuko Mhlongo
E-mail:nmhlongo@ngqushwamun.gov.za

Strategic Objective:

  • Ensure sound Expenditure Management through development and review of internal controls to strengthen the control environment and achieve clean administration.

The municipality has sound and effective internal controls which are implemented on daily basis. It is essential to ensure sound Expenditure through development and reviewing of internal controls for best control environment to achieve improved audit outcomes. Individual line managers are responsible to ensure that compliance with all legislation and regulations are complied within the process of conducting the affairs of the municipality. The requirements of such legislation and regulations should be reflected in municipal policies which themselves need to be reviewed time and time again to ensure continued relevance of such policies in line with any relevant changes and amendments.

Supply Chain Manager: Vacant

Strategic Objective:

  • Ensuring sound Supply Chain Management through development and reviewing of internal controls.

The procurement function is centralized in the Supply Chain Management Office to ensure value for money and transparency in the procurement of all goods and services required to support all functions of the municipality. The Office ensures that quality goods and services are acquired in a timely manner while also supporting the objectives of the municipality’s Local Economic Development Strategy. Procurement in the public space is highly regulated and the office strives to ensure that every transaction entered into is compliant to all relevant legislation and regulations.

Chief Accountant

Mr Tinus Matthaysen
E-mail: tmatthaysen@ngqushwamun.gov.za

Revenue

Manager: Mrs Nontombi Ndzungu
E-mail: jali@ngqushwamun.gov.za

Strategic Objective:

  • Implementing sound revenue and debt management practices through revenue maximisation.

Our revenue management deals with it is important that anticipated revenue levels are realistic for each revenue source and consistent with expenditure and collection experience. Municipal budgets must be funded and credible. The needs of the communities have to be met within the financial capacity and resource constraints of the municipality to ensure long term sustainability

Tariff setting plays a major role in ensuring certain levels of revenue according to affordability and to accommodate the consideration of basic services in the IDP strategic plan. The affordability of tariffs is under pressure due to increased cost and the increasing demand for bulk infrastructure and renewal of ageing infrastructure as Ngqushwa Local Municipality expands. Appropriate ways to restructure tariffs must be explored to encourage more efficient use of utility services and to generate the resources required to fund maintenance, renewal and expansion of infrastructure to provide services. Increases in tariffs must be closely linked to the National Treasury cost-of-living guidelines and reflect an appropriate balance between the interest of poor households, other customers and ensuring the financial sustainability of the municipality.

Refuse removal tariffs are mainly affected by high labor costs, petrol price increases and vehicle costs which are in many cases beyond Ngqushwa Local municipality’s control. In addition new ways need to be explored for alternative methods to manage the landfill site such as the revival of the recycling process and measures to prevent dumping, for example, garden refuse and removal.

Revenue enhancement and maintaining of existing revenue sources are essential for sustainable service delivery. Municipal budgets must be appropriately funded to ensure a financial going concern which is capable of providing and extending service delivery. It is essential that Ngqushwa Local municipality has an adequate source of revenue from it’s own operations and government grants to carry out our functions. The following actions are considered:

  • To seek alternative sources of own revenue to increase funding for capital projects.
  • Expand revenue base through the implementation of a new valuation roll.
  • The ability of the community to pay for services.
  • Identification and pursuance of government grants.
  • Tightening credit control measures and increase debt collection targets.
  • Improve customer relations and promote a culture of payment.
  • Realistic revenue estimates. Going back to basics to ensure MTREF are appropriately funded.
  • The impact of inflation, the municipal cost index and other cost increases.
  • Create an environment which enhances growth, development and service delivery.

Customer Billing

A new valuation roll will be implemented from 1 July 2017 and all newly rated properties will be phased out. Increased revenue from newly developed properties should expand and relieve some of the pressure on the municipality’s revenue base. The municipality conducts Supplementary Valuation on an annual basis to address gaps in the general valuation roll.

Citizens are currently only billed on monthly and annual basis for services they consume, and the City’s CSS results reflect positively on the accuracy and correctness of billing. However, such accuracy and correctness of billing remain dependent on the input uploaded by the utility and service departments. Internal billing controls are in place to identify material variances. Invoices are consolidated, displaying itemized and clearly indicated charges.

Finding out where our finances are going often starts by analyzing where we’ve been. The first step in assessing the financial condition of the municipality is to begin gathering information that is correlated to these environmental and organizational factors. Some of this information should be available using our own accounting and budgeting systems

  • Population trends
  • Median household income levels
  • Unemployment rates
  • Property full value trends
  • Levels of indigent households

Debt Collection

The continuous strict implementation of the credit control policy should result that Ngqushwa Local Municipality could maintain an exceptional payment rate.

It is however envisaged that with on-going economic pressures and increasing rate in unemployment the payment rate might become under pressure. Therefore special attention must be paid on managing all revenue and cash streams especially debtors as well as the creation of new revenue streams. The debtors turnover rate is at 2015/16 was at and 2016/17 is at Revenue management collection.

Budget

Manager: Ms Ntombentsha Doloni
E-mail: Dolonin@ngqushwamun.gov.za

Strategic Objective:

  • Ensuring sound financial planning and reporting through budget management best practices and interdepartmental coordination.

Section 153 of the Constitution requires that ‘a municipality must structure and manage its administration and budgeting and planning processes to give priority to the basic needs of the community, and to promote the social and economic development of the community’. The MFMA, together with the Municipal Systems Act (2000), aims to facilitate compliance with this constitutional duty by ensuring that municipalities’ priorities, plans, budgets, implementation actions and reports are properly aligned.

The Municipal Budget and Reporting Regulations came into effect on 1 July 2009. Their primary purpose is to regulate the format and content of annual budgets, adjustment budgets and in-year reports to promote greater transparency and facilitate the alignment of policy priorities, plans, budgets and reports.

Financial management strategies are important to guide Ngqushwa Local Municipality to maximise the available financial resources to ensure long-term financial viability through the following strategies that are utilised in the development of a five-year financial plan covering the lifespan of this Integrated Development Plan:

  • Well, thought-out budgetary and financial planning processes in line with budget and reporting regulation.
  • Effective cash flow management.
  • Ensure compliance with prescribed accounting standards and adherence to all legislation requirements.
  • Prepare annual financial statements according to accounting framework and review performance and achievements for past financial year.
  • Ensure 100% spending of government conditional grants to prevent withholding of equitable share.
  • Rolling out the Municipal Standard chart of accounts.
  • Direct available financial resources towards meeting the projects as identified in the IDP.

In line with National Treasury operational programs, the municipality will roll out the Municipal Standard Chart of Accounts (mSCOA) for budgeting, operational and reporting purposes with effect from the 2017/18 financial year.

Expenditure

Manager: Mr Ntuthuko Mhlongo
E-mail:nmhlongo@ngqushwamun.gov.za

Strategic Objective:

  • Ensure sound Expenditure Management through development and review of internal controls to strengthen the control environment and achieve clean administration.

The municipality has sound and effective internal controls which are implemented on daily basis. It is essential to ensure sound Expenditure through development and reviewing of internal controls for best control environment to achieve improved audit outcomes. Individual line managers are responsible to ensure that compliance with all legislation and regulations are complied within the process of conducting the affairs of the municipality. The requirements of such legislation and regulations should be reflected in municipal policies which themselves need to be reviewed time and time again to ensure continued relevance of such policies in line with any relevant changes and amendments.

Supply Chain

Supply Chain Manager: Vacant

Strategic Objective:

  • Ensuring sound Supply Chain Management through development and reviewing of internal controls.

The procurement function is centralized in the Supply Chain Management Office to ensure value for money and transparency in the procurement of all goods and services required to support all functions of the municipality. The Office ensures that quality goods and services are acquired in a timely manner while also supporting the objectives of the municipality’s Local Economic Development Strategy. Procurement in the public space is highly regulated and the office strives to ensure that every transaction entered into is compliant to all relevant legislation and regulations.

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