Municipal Finance Improvement Programme
The Municipal Finance Improvement Programme (MFIP) aims to assist and support all three spheres of government in terms of Chapter 3 (section 41) of the RSA Constitution, 1996 (Act 108 of 1996) and the applicable provisions of the Municipal Finance Management Act, 2003 (Act 56 of 2003) (MFMA) to effectively perform their responsibilities regarding local government financial management compliance, support, monitoring and oversight.
The MFIP contributes to building of a capable state in terms of Chapter 12 of the National Development Plan (NDP) and supports Outcome 9 of Government’s Medium-Term Strategic Framework (MTSF) in advancing a responsive, accountable, effective and efficient developmental local government system as it relates to sound financial management.
The MFIP has been initiated by the National Treasury in 2011 to support the financial management reform agenda and address the financial management performance challenges evident within the local sphere of government. The MFIP has since been implemented in three-year cycles, the third three-year phase of the programme (MFIP III) ended on 31 March 2020.
The MFIP is a strategically driven programme of technical support aligned to the six local government financial management (LGFM) game changers, designed to build the institutional and technical financial management capacity of NT, Provincial Treasuries (PTs) and Municipalities. The overall strategic goals of the MFIP are thus to facilitate improved local government financial management practices and outcomes through the placement and maintenance of technical advisors at these entities.
The programme provides institutional and technical capacity support based on three intervention strategies: