FINANCE DIRECTORATE
SHAREHOLDING MANAGEMENT DEPARTMENT
MUNICIPAL ENTITY
QUARTERLY NEWSLETTER
Analyst
2011/2012 Quarter 3: January 2012 – March 2012, ISSUE NO. 20
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
National Treasury MFMA Circular No 59: Municipal Budget Circular for
2012/2013 MTREF
This circular provides further guidance to municipalities and municipal entities for the preparation of
their 2012/13 Budgets and Medium Term Revenue and Expenditure Framework (MTREF). It must be
read together with MFMA Circulars No. 48, 51, 54, 55 and 58.
MFMA Circular 59 is available at:
http://mfma.treasury.gov.za/Circulars/Documents/Circular%2059%20%20Municipal%20Budget%20Circular%20for%20the%20MTREF%20201213/MFMA%20Budget%20Circular%20No%20%2059%20-%2019%20March%202012%20(final).pdf
Municipal Budget and Reporting Regulations
National Treasury has issued the latest version of formats which are to be used for the 2012/2013
budget cycle
These are available at:
http://mfma.treasury.gov.za/RegulationsandGazettes/Municipal%20Budget%20and%20Reporting%20Regulations/re
gulation2012-2013/Pages/default.aspx
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GENERAL:
KPMG’s Toolkit for the Company Director (3rd edition)
KPMG has released its third Toolkit for the Company Director. In the introduction to the Toolkit it is
stated that “This edition of the Toolkit has been revised and updated to reflect the new Companies Act,
71 of 2008 as well as the King III Code of Governance Principles and the King Report on Governance
for South Africa (King III) issued by the Institute of Directors in Southern Africa in 2009.”
The Toolkit is a comprehensive document of 123 pages and is 3.33mb to download:
http://www.kpmg.com/ZA/en/IssuesAndInsights/ArticlesPublications/FinancialServices/Documents/Directors%27%20Toolkit.pdf
Ernst and Young Survey on the effect of Digital Technology on Consumers
Ernst and Young’s Survey titled: “This time its personal: From consumer to co-creator” starts
with the following introduction:
“Digital technology is altering how, where and when consumers shop. It's transforming their
expectations and interactions with suppliers – from retailers and manufacturers to governments and
utilities. This upheaval has come so fast that many organizations are struggling to adapt their business
models to keep up with the evolving demands of consumers and the escalating potential of technology.
And one thing is clear: the future will be no less turbulent.
To get a clear picture of the new consumer and offer solutions to how organizations can keep pace with
their shifting needs we conducted an extensive international survey.
The survey took the pulse of almost 25,000 people of all ages and backgrounds, in 34 countries, across
both mature and emerging markets.”
The Ernst and Young Survey can be accessed at:
http://www.ey.com/GL/en/Services/Advisory/This-time-its-personal--from-consumer-to-co-creator
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 20011. 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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