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Financial management and MFMA implementation

735 Financial management and MFMA implementation introduction Sound Financial management practices are essential to the long-term sustainability of municipalities. They underpin the process of democratic accountability. Weak or opaque Financial management results in the misdirection of resources and increases the risk of corruption. The key objective of the Municipal Finance management Act (2003) (MFMA) is to modernise municipal Financial management in South Africa so as to lay a sound Financial base for the sustainable delivery of services.

CHAPTER 5: FINANCIAL MANAGEMENT AND MFMA IMPLEMENTATION 77 Since 2008, National Treasury has been giving specific attention to strengthening municipal budgeting and reporting practices. Key initiatives have been the introduction of the Municipal Budget and Reporting Regulations in 2009, the enforcement of in-year financial

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