Get GRAP Implementation Guide For Municipalities - MFMA - National Bb - Mfma Treasury Gov

The MFMA, together with the Municipal Systems Act (2000), aims to facilitate compliance with this constitutional duty by ensuring that municipalities' priorities, plans, budgets, implementation actions and reports are properly aligned.

What are the aims of the MFMA? The MFMA aims to modernise budget, accounting and financial management practices by placing local government finances on a sustainable footing in order to maximise the capacity of municipalities to deliver services to communities.

The Accounting Standards Board (ASB) publishes its Standards in a series of pronouncements called Standards of Generally Recognised Accounting Practice (GRAP). However, entities applying Standards of GRAP need to comply with the wider GRAP reporting framework as set out under Directive 5 as issued by the ASB.

The primary objective of mSCOA is to achieve an acceptable level of uniformity and quality in the collection of municipal data sets. mSCOA is an acronym for Municipal Standard Chart of Accounts, which denotes a business reform that will change the way local government operates, and for the better.

The goals of the PFM reform include strengthening fiscal discipline, ensuring debt sustainability and the efficient, transparent and modern management of public finances.

The Local Government: Municipal Finance Management Act 56 of 2003 intends: to secure sound and sustainable management of the financial affairs of municipalities and other institutions in the local sphere of government; to establish treasury norms and standards for the local sphere of government; and.

Reforms in municipal financial management The MFMA replaced an antiquated system of local government finance that focussed on compliance with rules and procedures. Practices, such as one-year, line-item budgeting, did not support long- term strategic planning nor match resources with needs over the medium-term.

These reforms include the implementation of the Treasury Single Account (TSA); upgrading the Integrated Financial Management System (IFMS) and the Integrated Personnel and Payroll System (IPPS); improving wage and payroll management, improving budget formulation, implementation, monitoring and reporting; and ...