The Budget and Treasury function is the centre of all reporting in line with the requirements of sections 71 and 72 of the Municipal Finance Management Act (MFMA). As a result of the lockdown, municipalities cannot operate and execute their mandates as usual.
- Section 71 submissions may not be completed on time as officials will not be able to perform daily tasks as usual; where submissions are completed, there is a risk that they will not truly reflect all the transactions that should have been recorded within the particular period.
- The President announced additional funding to municipalities that will require adjustments to current budgets. In addition, municipalities will need to prioritise funding for COVID-19-related support.
- The effects of the pandemic will have an impact into the next financial year and there is a possibility that year-ends will need to be adjusted that will directly affect the recently approved 2020/21 budgets.
RCA RESPONSE SOLUTIONS
- Assistance with reconciling submitted data strings to actual transactions incurred.
- Assistance in ensuring that all bank reconciliations are complete and accurate.
- Assistance with preparation of a Special Adjustment Budget in line with the Municipal Budget and Reporting Regulation Section 23(2) for additional allocations from National Treasury.
- Reconstruction of 2020/21 projections based on the current state of affairs—this can be employed to motivate the adjusted budget.
- Assistance with any other future Special Adjustment Budget in cases where more allocations will be made to the municipality.