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Budget & Treasury Office


ADM CFO  Mr Ncedile Zengethwa

Easily referred to as, the 'backbone' of any municipality, Budget and Treasury Office ensures efficient and effective financial operations. As the advisor on financial management issues in Amathole District, the department is responsible for fiscal discipline, enhancing the quality of expenditure, allocating financial resources and improving overall financial governance within the District.  The department also plays a key role in promoting shared growth and development in the district and works towards achieving socio-economic equity through more responsive budgeting processes, encouraging value for money spending and protects and promotes effective utilisation of the municipality's assets.

The primary objective is to:

  • Turning around the financial viability of the district management
  • Building asset management capacity of the district
  • Achieving a clean audit report
  • Ensure long-term financial sustainability; 
  • Promote good financial management practice; 
  • Provide financial advise to council; 
  • Ensure full compliance with all accounting statutory and legal requirements including implementation of the MFMA; 
  • Implement revenue generating strategies; 
  • The Budget and Treasury Office is divided into 2 sub-directorates:

-       Financial Management 

-       Supply Chain and Asset Management 


Supply Chain and Asset Management Division

The Supply Chain Management sub-directorate is further split into following divisions:


1. Supply Chain Management Unit

This Unit is managed by a Senior Manager

The Constitution of the Republic of South Africa Act 108 of 1996, section 117 states that:

 “when an organ of state in the national, provincial or local sphere of government, or any other institution identified in national legislation, contracts for goods or services, it must do so in accordance with a system which is fair, equitable, transparent, competitive and cost-effective.”

The Municipal Finance Management Act 56 of 2003, Chapter 11 Section No. 111, states that:

“each municipality and each municipal entity must have and implement a supply chain management policy which gives effect to the provisions of this part.”

The SCM Regulations, Regulation 2, states that:

“each municipality and each municipal entity must in terms of section 111 of the Act have and implement a supply chain management policy.”

Giving effect to the above, the Accounting Officer has established a Supply Chain Management Unit that falls within the ambit of the Chief Financial Officer.  The following Section falls within the SCM Unit:




ADM’s Supply Chain Management (SCM) Policy provides for an effective system of demand management in order to ensure that there is proper planning will result in resources required supports the strategic and operational commitments of the municipality are delivered at the correct time, at the right price and at the right locations, and that the quantity and quality satisfy the needs of the municipality.  



The ADM’s SCM Policy provides for an effective system of acquisition management in order to ensure:

  1. That goods and services are procured by the municipality in accordance with authorised processes only;
  2. That expenditure on goods and services is incurred in terms of an approved budget in terms of section 15 of the Act;
  3. That the threshold values for the different procurement processes are complied with;
  4. That bid documentation, evaluation and adjudication criteria, and general conditions of a contract, are in accordance with any applicable legislation;  and
  5. That any Treasury guidelines on acquisition management are properly taken into account.



The ADM’s SCM Policy provides for an effective system of logistics management in order to provide for the setting of inventory levels, placing of orders, receiving and distribution of goods, stores and warehouse management, expediting orders, transport management, vendor performance, maintenance and contract administration.



The ADM’s SCM Policy provides for an effective system of risk management for the identification, consideration and avoidance of potential risks in the SCM System.


The ADM’s SCM Policy provides for an effective internal monitoring system in order to determine, on the basis of a retrospective analysis, whether the authorised supply chain management processes are being followed and whether the desired objectives are being achieved.  Good, effective and well implemented supplier performance management will,  

  • supports and enhances service delivery to our communities, 
  • regulates the quality of goods and services rendered to the municipality;
  • Ensures that the tax payers money receives proper returns, i.e. best value for money;
  • Mitigate and identify risk on performance; and
  • Monitors on a monthly basis the performance of the contractor under the contract or agreement.


The ADM’s SCM Policy provides for an effective contract management system, giving effect to Section 116 of the Municipal Finance Management Act, 56 of 2003.  All contracts entered into are:

  • In writing;
  • Stipulates the terms and conditions of the contract or agreement;
  • Must be unambiguous;
  • Terminates contracts or agreements in the case of non- or under- performance; 
  • Develop and maintain a contract register; termination register and fixed term contract register; and
  • Provides mechanisms for dispute resolutions.


Key Flagship Projects (high impact projects including IDP projects that the department is currently doing or has recently done)


  • Service Provider Development Programmes including Contractor Development
  • Speedy approval and award of contracts
  • Reduction in deviations from the SCM processes 
  • Monitoring the performance of suppliers and service providers 


This Unit is managed by a Senior Manager: Sibongile Mkhohlakali


  • Section 63 of the Local Government: Municipal Finance Management Act, 2003 (Act no. 56 of 2003) states that the accounting officer of a municipality is responsible for the management of the assets of the municipality, including the safe-guarding and the maintenance of these assets.
  • Section 14 of the Local Government: Municipal Finance Management Act, 2003 (Act no. 56 of 2003) determines that a municipal council may not dispose of assets required to provide minimum services.
  • The Municipal Asset Transfer Regulations (Government Gazette 31346dated22August 2008) regulates the transfer and disposal of capital assets by Municipalities and the granting by Municipalities of rights to use, control or manage capital assets.
  • The municipal manager as the accounting officer and the custodian of municipal funds and assets is responsible for the implementation of the asset management policy which regulate the acquisition, safeguarding and maintenance of all assets.
  • These assets must be protected over their useful life and may be used in the production or supply of goods and services or for administrative purposes.
  • All assets must, over their useful life, be maintained and used in the production or supply of goods and services or for administrative purposes. 
  • This division is responsible for the development and the implementation of the Asset Management Strategy, policy and procedures. It also manages the development updating and maintenance of the asset register for the entire ADM.
  • Financial reporting for assets in terms of the applicable accounting standards resides within this division.  It also facilitates the development and implementation of Asset Management and Maintenance Plans for the different categories of assets.  
  • The asset management functions of the Accounting Officer in terms of Chapter 8 of the MFMA as well as those of the Chief Financial Officer in terms of Chapter 9 of the MFMA are implemented by this division.
  • This division has to ensure compliance with GRAP standards when implementing their functions.


The CFO must ensure that all assets are, as prescribed by the current standards, classified under the following headings in the asset register and Statement of Financial Position:

  • PPE (infrastructure, community, heritage and other assets)
  • Investment property
  • Inventory (classified as PPE)
  • Intangible asset



This Division is split into the following Units:

  1. Revenue management unit

Revenue management – the key functions of revenue management: 

-       Billing  - to ensure that all billable  consumers that ADM is rendering services to are billed correctly,  accurately and timeously 

-       Data management – to ensure the integrity of the billing master file in terms of accuracy and completeness

-       Credit control- to ensure that all debt owed to ADM is collected, and consumers not affording to service their debts are then registered for the indigent subsidy. 

-       Cash management and reconciliation – to ensure that all monies received for services rendered are correctly matched and deposited into ADM’s primary bank account, and ensure compliance of MFMA Circular 50 of 2009. 


  1. Budgeting Unit

This Unit is managed by a Senior Manager: Sharon Kalis; The key functions of this Unit are as follows:

  • The function of this division is to co-ordinate the budgeting and the expenditure control functions of ADM, to provide support to the different departments in respect of budgeting and expenditure, to facilitate budget adjustment processes and liaise with key stakeholders on matters of budgeting and expenditure.  
  • One of the key responsibilities for this division is monitoring of compliance to the Division of Revenue Act, relevant budget clauses in the Municipal Finance Management Act as well as the Treasury Budgeting and Reporting regulations.  
  • Together with the IDP and PMS unit located in the Strategic Management department, the division also provides support to the Executive Mayor in exercising her planning and budgeting responsibilities in terms of the Municipal Finance Management Act.

Budget Unit Responsibilities

  1. The Budget Unit is responsible for preparing the Annual Budget in Schedule A format, including the annual budget returns, the Adjustment Budget in Schedule B format,  as well as monthly reporting in Schedule C format. 
  2. The unit is also responsible for Section 72 reporting, which entails reporting on the Mid-Year budget and performance assessment during the first half of the financial year.  
  3. Section 71 reports entail monthly, quarterly, six monthly and annual reporting on implementation of the approved annual budget. 
  4. Budgeting and monthly financial reporting on Externally Funded and Internally Funded Projects is also an internal core function of the unit.

Core Functions of the Budget Unit

[a] To prepare the Annual Budget

[b] To prepare the Adjustment Budget

[c] To prepare the Mid-Year budget and performance assessment

[d] To develop and update the Budget Policy in line with the applicable Treasury regulations

[e] To assist departments in formulating departmental budgets

[f] Monthly monitoring of the budget by producing monthly budget vs expenditure reports

[g] To prepare Annual Budget Returns for submission to Treasury

[h] To submit monthly VAT returns for the institution to SARS and lead any SARS audits.