Municipal Finance Improvement Programme (MFIP) IIIx
The MFIP III was extended for an additional two years from 2020 to 2022. The extension of the MFIP III (MFIP IIIx) is based on the sheer scale of the persistent financial management challenges observed at the local sphere of government, such as deteriorating financial health, unfunded budgets, regression in audit outcomes, poor accounting, revenue, asset and supply chain management practices. The magnitude of the aforesaid challenges will require sustained and targeted technical support to especially distressed and dysfunctional municipalities over an extended period of time.
MFIP IIIx will continue to be strategically aligned to the six local government financial management game changers adopted by the Budget Council, through the provision of direct technical capacity support to the National Treasury (NT), Provincial Treasuries (PTs) and Municipalities. This will be mainly achieved through the procurement and placement of Technical Advisors (TAs) within various NT divisions, the Municipal Finance Units of PTs, and the Budget and Treasury Offices (BTOs) of selected municipalities, according to identified work streams that will seek to functionally integrate and optimise the impact of the technical support
The MFIP IIIx operating model is set out in the figure below and illustrates the alignment of the integrated project work streams to the six LGFM game changers. It further shows the three modalities of providing direct institutional and technical capacity support to selected NT divisions, PT municipal finance units and the BTOs of identified municipalities.