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  • Municipal Finance and Accounting 3/e
  • Fourie M, Opperman L
  • ISBN: 9780627034084
  • eISBN: N/A
  • ePub ISBN: 9780627034848
  • 660 Pages | Published: 2015

The first edition of Municipal finance and accounting was published in 2007, and was the first comprehensive text on the principles and best practice of municipal finance and accounting to appear since Dr Jack Cowden’s 1968 treatment of more or less the same subject matter.


The first edition was revised in 2011, the main changes being the inclusion of considerable additional material on the legislative framework governing municipalities, an extensive revision of the chapter on municipal budgets in order to incorporate the approaches introduced by the 2009 regulations on budgets and reporting requirements, and various amendments to chapters 3 and 4 to reflect the advent of further GRAP standards and changes in important local government statutes. The example of the annual financial statements contained in Chapter 5 was entirely redone to accord with the requirements of GRAP, and the chapter itself amended to include summaries of most of the prescribed GRAP standards.


The many changes in municipal finance that occurred since 2011 have now necessitated a second revision. All new enacted legislation and amendments to existing legislation have been included, as well as important impending legislation and new regulations, particularly those issued in terms of the Municipal Systems Act and Municipal Finance Management Act. Important MFMA circulars are also covered, as are other significant guidelines issued by the National Treasury. Various other matters of importance in relation to the financial administration and governance of

municipalities are also dealt with, including municipal public accounts committees (MPACs), new approaches to grants, the supply chain management reporting framework and several significant court cases. An updated version of the annual financial statements has also been prepared.


As with the original edition, this revised version deals holistically with all the key features of municipal finance and accountancy, with emphasis on the principles of sound financial governance in municipalities. It is designed for use in tertiary education and also for regular consultation by accounting officers, financial and non-financial officials and councillors in the performance of their duties. Municipal finance and accounting should be useful to anyone involved with, or interested in, the financial administration and governance of municipalities.

Chapter 1 Legislative framework for local government

Section 1 Historical background

Section 2 Applicable legislation

Section 3 Types of municipality

Section 4 Powers and functions of municipalities

Section 5 Governance in the financial administration of municipalities: compliance with statutory requirements

Section 6 Integrated development planning


Chapter 2 Standard operational cycle in financial administration of municipalities

Section 1 The annual budget

Section 2 The service delivery and budget implementation plan

Section 3 The annual financial statements

Section 4 The annual report

Section 5 The council’s oversight report


Chapter 3 Financial management

Section 1 Revenue management: administration of debtors

Section 2 Financial management information systems

Section 3 Financial reporting

Section 4 Raising and administration of loans: debt and debt administration

Section 5 Cash management and investments

Section 6 Performance management

Section 7 Supply chain management in local government

Section 8 Management of fixed assets

Section 9 Value-added tax

Section 10 Financial risk management in municipalities

Section 11 Payroll administration

Section 12 Financial misconduct


Chapter 4 Roles of other organs of state and entities in the financial administration of municipalities

Section 1 Reporting obligations

Section 2 Regulatory powers

Section 3 Advisory responsibilities

Section 4 General matters

Section 5 Oversight powers and duties

Section 6 Interventionist powers and duties

Section 7 Grants and financial allocations to municipalities


Chapter 5 Annual financial statements and related matters

Section 1 Introduction

Section 2 Accounting standards

Section 3 Annual financial statements

Section 4 Standard chart of accounts

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