Payroll, Banking and Investments

Payroll administration in a municipality:

A municipality's payroll is the process of calculating and paying employee salaries. It's one of the biggest expenses for a municipality. 

• Includes maintaining employee records
• Preparing and issuing payslips to employees
• Maintaining and reviewing timesheets
• Identifying, investigating, and resolving discrepancies in timesheet and payroll records
• Drafting and reviewing of employee contracts

Banking:

The Municipal Finance Management Act (MFMA) requires that municipalities in South Africa have at least one bank account in their name. The money received by the municipality must be paid into this account promptly. 

• The municipality must have at least one bank account in its name
• The primary bank account is usually the general bank account for all municipal banking transactions
• All money received by the municipality must be paid into its bank account
• The municipality may open additional bank accounts if it can justify it for legal, practical, or efficiency reasons 
• The municipality cannot open a bank account abroad or with an institution that is not registered as a bank
• The accounting officer of a municipality administers all the municipality's bank accounts

Cash Management and Investments:

The Local Government Municipal Finance Management Act 56 of 2003 (MFMA) requires a municipality to establish an appropriate and effective cash management and investment policy within which the municipality must, within any prescribed framework:

• Conduct its cash management and investments and
• Invest money not immediately required.

The objectives of this policy are: - To safeguard cash resources of the municipality and to ensure the effective, efficient and economical use thereof; and - To gain the highest possible return on investment, within the framework prescribed on permitted investments, during period when excess funds are not being used; - To emphasize a culture of accountability over the municipality’s cash.

Senior Manager: W Crafford
Tel: 028 425 1157
Email: wcrafford@odm.org.za