Promoting financial management in local municipalities through accountability

Abstract

Background: Local municipalities in South Africa are plagued with issues of accountability that affect their financial management. The Senqu Local Municipality has however contrasted this trend by achieving unqualified audit outcomes for consecutive years. This has prompted interest in how the municipality has maintained its accountability and financial management.

Aim: This article reviewed the MFMA Audit Outcome of the Senqu Local Municipality to generate insights into the municipality’s accountability ecosystem and financial management practices.

Methods: The study was conducted through an analysis of the 2019/2020 General Report on Local Government Audit Outcomes. The study further utilised desktop sources as well as digital media and internet sources. Thematic analysis was used for data analysis.

Results: The accountability measures in the Senqu Local Municipality are enabled by planning, oversight from legislative and administrative authorities, effective internal controls and an effective political and administrative interface. These measures initiate financial management practices and embed accountability into the organisational culture of the municipality.

Conclusion: Strong accountability institutions can provide a solid basis for sound financial management in local municipalities. The study recognises the need to enforce responsibility on internal institutions to mitigate the risk of financial irregularities. The study further emphasises the necessity for municipal stakeholders to implement regulations that foster accountability and sound financial management into the organisational culture.

Contribution: This study highlights the relationship between accountability and financial management in local municipalities and locates accountability practices with reference to municipal audits in local municipalities.