The Directorate of Financial Services aims to ensure efficient and effective financial management for Buffalo City Municipality.

The financial philosophy of Buffalo City Municipality is to provide a sound financial base and the resources necessary to sustain a satisfactory level on municipal services for its citizens.

It is the objective of the city to achieve a strong financial position with the ability to:

• Withstand local and regional economic impacts.
  
• Adjust efficiently to the community's changing service requirements.
  
• Effectively maintain, improve and expand the city's infrastructure.
  
• Manage the city's budget and cash flow to the maximum benefit of the community.
  
• Prudently plan, co-ordinate and implement responsible and sustainable community development and growth.
  
• Provide a high level of fire and other protective services to assure public health and safety.
  

Buffalo City Municipality's financial policies shall address the following fiscal goals:

• Keep the city in a fiscally sound position in both the long and short term.
  
• Maintain sufficient financial liquidity through regular reviews and adjustments to meet normal operating and contingent obligations.
  
• Apply credit control policies which maximise collection while providing relief for the indigent.
  
• Apply credit control policies that recognise the basic policy of customer care and convenience.
  
• Operate utilities in a responsive and fiscally sound manner.
  
• Maintain existing infrastructure and capital assets.
  
• Provide a framework for the prudent use of debt financing.
  
• Direct the city's financial resources toward meeting the goals of the city's Integrated Development Plan.
  

The Financial Services Directorate comprises three departments:

• Asset and Risk Management;
• Budget and Treasury; and
• Revenue Management.

Goals

• To ensure accurate financial accounting and control over municipal assets.
  
• To ensure the production of monthly and annual financial statements that complies with the applicable legislation.
  
• To ensure that financial accounting controls are instituted and maintained and are conducted within the limits of the applicable legislation and acts.
  
• To ensure the necessary compliance with the procurement policy of the council.
  

Nature of services

• Prepare the monthly and annual financial statements.
  
• Implement and maintain financial accounting controls.
  
• Monitor the adherence to policies, procedures and accounting practices.
  
• Implement and maintain prescribed asset management policies and procedures.
  
• Balance and reconcile asset registers and regularly update the computerised asset management system.
  
• Review the asset registers and update the insurance portfolio.
  
• Implement improvements to the existing accounting systems.
  
• Process all creditor payments including salary, wage, staff benefit, trade and sundry payments.
  
• Scrutinise and assess all tender documentation.
  
• Develop Supply Chain Management Systems

User charges

Administration fee of 2,5% charged to micro-lenders and financial institutions, and 5% charged to legal firms in respect of monies recovered and paid over. Stores on-cost fee of 5% charged to departments/cost centres for stock issued.

• Finalisation of the financial statements within two months of the financial year-end.
  
• Implement relevant recommendations from the GAMAP Project Steering Committee.
  
• Co-ordinate the year-end audit to minimise the number of audit queries.
  
• Implement a computerised asset management system.
  
• Establish and update a fixed asset register in terms of GAMAP/GRAP requirements.
  
• Review the insurance portfolio to ensure that assets are adequately insured.
  
• Investigate and initiate improvements to existing accounting systems.
  
• Monitor and review the impact of the Municipal Finance Management Act and implement the necessary requirements as appropriate.
  
• Monitor the adherence to accounting policies, procedures and practices.
  
• Revise and review the training needs of staff.
  

• Establish consolidated chart of accounts on accounting system to comply with GAMAP requirements.
  
• Prepare financial statements in GAMAP/GRAP format.
  
• Review and update asset and accounting policies, procedures and practices.
  
• Complete review and enhancement of accounting and asset management systems.
  
• Monitor and review the impact of applicable legislation and implement the necessary requirements.
  
• Ongoing review of the insurance portfolio to ensure that assets are adequately insured.
  

• Production of financial statements that comply with the applicable legislation.
  
• Number and type of audit queries.
  
• Production of assets and advances that are reconciled and balanced.
  
• Production of updated insurance portfolio.
  
• Value of losses sustained due to assets not adequately insured.
  
• Production of updated policies and procedures.
  
• Timely payment of all creditors including salaries, wages and staff benefits.
• Number and type of payment complaints.
  
• Proportion of procurement recommendations reversed or amended by the council.
  

Goals

• Implement budget reforms.
  
• Develop sound budgeting systems.
  
• Develop proper control mechanisms.
  
• Develop sound financial reporting mechanisms.
  

Nature of services

• Support services.
  
• Budgeting & budget reviews.
  
• Monthly reporting on performance against budget.
  
• Updating directorates on their cash flow positions on a monthly basis.
  
• Adjusting budgets.
  
• Activity-based costing.
  
• Acquring and issuing of stock.

User charges

Nil

• Improving budgeting systems.
  
• Accurate performance reporting.
  
• Develop internal control measures.
  
• Develop strong and vibrant budget committees in the various directorates.
  
• Compliance with legislation.
  
• Ensure the availability of materials to user departments to enable prompt service delivery.
• Identifying of obsolete and slow moving stock and disposing thereof where necessary.

• Implementation of ABC costing and ABC management.
  
• In-year reporting.
  
• Improving budgets per directorate and department.
  
• Budget priorities.
  
• Streamlining of stock items and levels.

• Balanced budget aligned to the municipal IDP.
  
• Full compliance with legislation.
  
• Budget owned by communities and stakeholders.
  
• Percentage variances at stock-take.

Nature of services

• Valuation and calculation of rates for all properties.
  
• Read meters (electricity and water), calculate sewerage charges, calculate refuse charges and sundry services.
  
• Produce and mail the monthly service accounts to consumers.
  
• Collect all consumer service payments and attend to all consumer account-related queries.
  
• Enforce council's credit-control policy.
  
• Disconnect electricity and water for arrears.
  
• Utilise the prepayment system to collect arrears.
  
• Upgrade and extend pay points and vending.
  
• Set up effective customer queries and complaints procedures and systems.
  
• Set up proper documented work procedures and systems.
  
• Training and development of staff.