Financial management and skills are key to delivering municipal services

Municipalities are not only service delivery centers that provide citizens with basic services such as drinking water supply, electricity and health services, but are also responsible for maintaining healthy and healthy living conditions. improving the quality of life of communities.

However, reliable and efficient service delivery is one of the greatest challenges facing South African local governments, highlighting the need for good governance and adequate resources to underpin successful service delivery.

This is according to Munsoft Executive Director, Ndiafhi Rerani, who stresses that local government service delivery must be guided by robust and effective financial management systems and the skills required to operate such systems.

“Poor service delivery in municipalities is caused by many factors, such as municipalities not being financially self-sufficient and lacking the necessary infrastructure and resources to fulfill their mandate to citizens,” Rerani explains.

He notes that to bring municipalities to a better level of service delivery, the following fundamentals must be in place: strong governance, effective financial systems and support to deliver on the basis of these systems.

Interdependent components

Municipal financial management involves the management of a range of interrelated elements: planning and budgeting, revenue, cash and expenditure management, procurement, asset management, reporting and monitoring.

Financial management is a key element of overall municipal management. It enables the local authority to plan, mobilize and use financial resources efficiently and effectively, as well as to fulfill its obligations and be accountable to its citizens.

“Municipalities work with a variety of service providers and these must be paid on time, but at the same time purchases must be made in accordance with the Municipal Financial Management Act. Financial systems therefore need to be managed properly to ensure compliance, as well as an efficient flow of funding where it is needed to ensure effective service delivery,” says Rerani.

“At the same time, municipalities also need the right skills to manage these systems to achieve the desired results. Municipalities therefore need to focus on skills development and training that would meet their needs.

Training providers

Accredited training providers can offer a variety of courses and programs, such as Certified Municipal Billing and Financial Software Training and Standard Chart of Accounts (SCOA) training.

“Municipalities need to be aware that having the right skills and resources will enable them to set up their financial and procurement process. And it’s already halfway to getting a clean audit,” Rerani says.

Munsoft is the local leader in the development, deployment and maintenance of municipal financial management software in South Africa. The company currently provides financial management software and related services to over 70 municipalities in Southern Africa.

The company offers an integrated financial management and internal control system for local authorities, enabling its customers to transact in accordance with the regulations on the SCOA, a national standard for the uniform recording and classification of municipal budgets and financial information at the transactional level.



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