Budget and Treasury

Duties of the Budget and Treasury Office.

The Budget and Treasury Office (BTO) is the anchor office of the Municipality as it provides support to all departments of the Municipality.

The primary role is dealing with the management of a municipal’s funds and ensures financial sustainability for the institution.

For any plan to be implemented there is a need for cash, as actions won’t materialize without cash injections i.e. consider the concept of fuel for a vehicle fleet, you may have the best car designs with the most sophisticated engines, but for any one of these vehicles to move you need fuel.

Hence the fleet won’t be able to serve its purpose without a drop of fuel.

Hence similar to the Municipality scenario where you may have hired the best personnel, with state of the art working tools (which in turn need cash to be acquired). In turn, the highly skilled personnel will have to be paid.

It is clear that the Municipality cannot operate without cash, which has to be made available to all departments and is controlled by BTO in terms of the Municipal Finance Management Act of 2003.

The BTO provides support through the following units, Budgeting, Revenue, Supply Chain Management and Expenditure.

The Budgeting Unit:

The unit prepares a strategic, credible and sustainable budget as required by the legislation.

• It monitors operational activities, indicates on a monthly basis any deviations from the original budget plans to enable departments to take corrective action timeously.
• The Unit also controls expenditure by highlighting exhausted budgeting items to assist management in deciding on how to deal with the underlying expenditure in question.
• The Budgeting Process synchronises departmental plans (as set out in the IDP) to operational activities, which are further broken down into time frames through the Service Delivery and Budget Implementation Plan.

Revenue Management Unit:

This unit deals with the inflow of income into the Municipality, be it statutory or non – statutory. It ensures correct management of cash received and that all funds received are accounted for in a correct prescribed manner;

• It also ensures that consumer data is accurate in order to bill correctly, thereby improving cash collections and reducing outstanding debts

Supply Chain Management Unit:

This Unit deals with the fulfilment of demands of all departments on all goods and services required to fulfil each departmental to enhance service delivery as set out in the IDP.

It ensures that those products and services are made available timeously.

Expenditure Management Unit:

This Unit ensures that funds of the Municipality are spent in terms of an approved budget and sets up controls to minimize misuse of funds through fraud and corruption and it ensures that the municipality is financially viable

Asset and Liability Management:

This unit produces and maintain an accurate asset register and ensure that the council’s assets and liabilities are effectively managed.

At every financial year, BTO department prepares Annual Financial Statements which are audited by Auditor General

The core function of this directorate is to ensure a sound financial management.

Vision

Sound Financial Viability through financial prudence

Mission

To establish, implement and maintain norms and standards required to generate funds through fostering a sense of responsible citizenry in order to meet legislative and mandatory obligations.

Values

• Accountability
• Transparency
• Compliance
• Integrity
• Loyalty

Motto

“Financial Prudence is our Sustainability”

Objectives

• To ensure a fully capacitated organisational structure to address powers and functions roles and responsibilities as required by the MFMA Act No.56 of 2003
• Initiate priority skills acquisition in line with Joint Initiative for Priority Skills Acquisition (JIPSA)
• To service all our customers with diligence.
• To ensure that the Ingquza Hill Local Municipality remains financially viable through:
• All properties on the General Valuation Roll and receiving Municipal Services are properly recorded on Billing Database.
• Tariffs are modelled on cost recovery.
• Reduce outstanding debts.
• Improve debt collection rate in line with National Norms.
• Reduce debt turnaround period in line with National Norms.
• Enhance revenue base.
• To enhance financial management practices within Ingquza Hill to sustain the institution as a going concern.
• To ensure that the Service Delivery Model is premised on credible cash backed Budget Framework.
• Ensure 100% receipt of funds registered in the DORA.
• To ensure that the municipality maintains its Unqualified Audit Report status Address all matters associated with Audit Report.
• Address all matters associated with Audit Report.
• Present Annual Financial Statements to Auditor-General in compliance with Section 126 of MFMA
• Strengthen oversight functioning – performance of SDBIP
• To maximise and streamline Morden Technologies and Financial Systems

• SECTIONS
• Budget and Reporting
• Revenue Management
• Expenditure Management
• Supply Chain Management
• Asset Management
• Free Basic Services