FINANCE DIRECTORATE,
SHAREHOLDING MANAGEMENT DEPARTMENT
MUNICIPAL ENTITY
QUARTERLY NEWSLETTER
Analyst
2008/2009 Quarter 4: 1April 2009 – 30 June 2009, ISSUE NO. 9
As parent municipality to the municipal entities we aim to keep our municipal entity boards of
directors and staff abreast of all current news, legislation and policies directly affecting the
municipal entities. This will enable directors to be continuously informed as well as ensuring that
we meet the legislative requirement as parent municipality to ensure that both the municipality and
the municipal entity comply with the Municipal Systems Act, the Local Government: Municipal
Finance Management Act and any other applicable legislation.
Contents
The newsletter’s intend to convey information relating to the Local Government: Municipal Finance
Management Act, Local Government: Systems Act, Companies Act, Corporate Governance and any
information relevant to municipal entities.
THE LOCAL GOVERNMENT LEGISLATION:
THE MUNICIPAL FINANCE MANAGEMENT ACT:
Budget Format Reform
The City has applied for exemption for its municipal entities from the requirements of the new
budget formats as was reported in the last Quarterly Newsletter. The City has yet to receive a reply
from National Treasury. The Financial Managers of the municipal entities have been advised to use
the new reporting formats while the exemption application is under consideration.
Reporting Requirements for the next quarter
Municipal Entities are reminded that the following reporting requirements are due during the next
quarter:
 Final Performance Assessment for 2008/2009
 Board Performance Assessment
 Legislative Checklist
 Competency Returns in terms of Regulation 14 the Municipal Regulations on Minimum
Competency Levels. Link:
http://www.treasury.gov.za/legislation/mfma/reg_gaz/Gazette%20No%2029967.aspx
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GENERAL:
INSTITUTE OF DIRECTORS: TRAINING COURSES
The Institute of Directors run training courses for directors and trustees throughout the
year. Click on the link below for the yearly schedule:
http://www.iodsa.co.za/director_dev_calendar.asp?ShowWhat=DevBlock#33
PWC ARTICLE: FRAUD IN A DOWNTURN
A PriceWaterhouseCoopers article on Fraud in a Downtown states that “the impact of the
credit crunch and the global economic slowdown is challenging even our most robust
institutions. Those charged with the governance of some of our largest private sector
companies have had to focus on short term measures to address the risk of corporate
failure. Leaders of public sector institutions must confront challenges around maintaining
and improving service provision when the resources necessary to deliver services may not
be made available. The dilemma public and private organisations face is how best to manage
recovery in the short term, while not losing sight of the need to maximise shareholder value
and to maintain and develop services over the medium and long term.”
Topics covered in the article are:
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Introduction
Fraud and integrity risks in 2009
The strategy of the enlightened organisation
Conclusion
The full article can be viewed at:
http://www.pwc.com/za/eng/pdf/pwc-Fraud-in-a-Downturn-SA09.pdf
Please contact Louise Muller (021 4003940) or Richard Wootton (021 4002701) if you have any
queries in respect of this newsletter.
Although every effort is made to check the accuracy and quality of the information supplied, The
City cannot be held responsible for any errors that may arise.
Copyright(c) City of Cape Town 2007. All rights reserved. No part of this newsletter may be reproduced or transmitted in any form
without written permission from the City of Cape Town, Finance Directorate, Shareholding Management Department.
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