Abstract:
The purpose of this article is to conceptually and theoretically analyse
municipal finance and administration in South Africa, taking into account
the need for clean audit outcomes which can be achieved through
sound and effective municipal financial administration. The rationale for
an analysis of municipal finance and the need for clean audit outcomes
arose, firstly, from the fact that municipal finance covers the sources of
revenue in the form of taxes that are then used by municipal government
after intergovernmental transfers. Secondly, municipalities are faced
with many challenges in trying to deliver services to the community.
Discussion of municipal finance management and administration, and
clean audit outcomes, has been on the government agenda for some
time. However, the anticipated turn-around in the municipalities is not
happening. In 2009, the national government initiated a programme
called “clean audit programme”, which is scheduled to be completed in
2014. However, the pace at which the municipal financial management
issues are being attended to at the municipal levels leaves much to
be desired. It is therefore doubtful whether all the municipalities will achieve the desired clean audit status by 2014. Hence, the objective
of this study is to contribute to and promote discussion on the topic
in academic circles and among people who have an interest in local
government.
