Oudtshoorn, 20 July 2021 – The Executive Mayor, Chris Macpherson, commended the Oudtshoorn Municipalities Finance Department for a job well done following a good review issued by the Western Cape Provincial Treasury to Oudtshoorn Municipality on the Budget 2021-2022.
The review of the final budgets of municipalities is mainly conducted to ensure the comments of the Western Cape Government have been considered and were tabled in council by the mayor as required by the Municipal Finance Management Act (MFMA). The review focuses on key main areas and the feedback on the final budget is provided under each of these main areas, which are the following:
- The final budget was considered for approval by Council at least 30 days before the start of the budget year and subsequently approved before the start of the budget year per sections 16 and 24 of the MFMA. The Municipality approved the final budget on 7 June 2021.
- All the relevant A-Schedules and supporting schedules were fully completed.
- The approved budget and supporting documents were placed on the municipal website per section 75 of the MFMA.
- The Municipality adopted all of its policies in council.
- The Municipality submitted its budget schedule in the required the Municipal Standard Charter of Accounts (mSCOA) format version 6.5.
The Oudtshoorn Municipality complied with all of the above areas in its budget. The provincial treasury review feedback also noted the following:
- The Municipality is commended for ensuring that all (mSCOA) data strings for the 2021/22 Medium Term Revenue Expenditure Framework (MTREF) are successfully uploaded (green status) to the Local Government Upload Portal.
- Upon performing the Original Budget (ORGB) segment analysis of the Municipality it was noted that the Municipality made adequate use of all six regulated segments in allocating the budget and is commended for making most of the changes in the ORGB which was identified within the Tabled Budget segment analysis as per the Strategic Integrated Municipal Engagement (SIME) report.
- The Municipality has shown major improvement with the implementation of mSCOA regulations.
- Some expenditure was budgeted against non- funding; this means that these expenditure items are not linked to a funding segment. It is advised that the fund source should be reviewed for these items, as all expenses should be linked to a fund source.
- The Municipality is therefore encouraged to make use of all the available segments and make the necessary corrections in its adjustment budget, as once the budget has been locked amendments in the ORGB data strings can only be amended in an adjustments budget.
During an appreciation address to the Oudtshoorn Municipalities Finance Department, Macpherson compared them to the pivot around which everything revolves. “Without you, the municipality will fall apart, as it is because of your department’s knowledge and the fact that you have the interests of the municipality at heart that we got such a positive review. Thank you for your hard work and for being hard on all the departments to stick to their budgets”.
The Municipality adhered to the timeframes provided in the MFMA and the MBRR concerning the approval of the budget. It was timeously placed on the municipal website and submitted to Provincial Treasury. The Municipality is commended for the full completion of its main and supporting schedules.
Photo: Front row: FLTR: Reglynn Da Silva: Snr Clerk: Assets/Insurance, Tasneem Boer: PA of CFO, Sophia Swart: Snr Manager: Financial Accounting, May-Garlin Du Plessis: Manager: Expenditure, Jean-Claude Ladouce: Manager: Supply Chain Management