AFRIKAANS: Die rol van plaaslike owerhede is nie slegs die van diensteleweraar nie, maar sluit in die ontwikkeling van plaaslike gemeenskappe om die lewenstandaard van almal in Suid-Afrika te verbeter. Die behoeftes van agtergeblewe gemeenskappe moet voorkeur geniet om deur plaaslike owerhede aangepak te word. Dit sal wesenlike finansiele bydraes vereis om die agterstande die hoof te bied. Plaaslike owerhede beskik skaars oor voldoende inkomstebronne om die verskaffing van noodsaaklike dienste na behore te onderneem. Die owerhede sal dus beswaarlik as ontwikkelingsinstellings kan dien. Elke plaaslike owerheid moet daarna streef om bestaande inkomstebronne optimaal te benut. Die belastingbasis kan uitgebrei word deur gebiede in te sluit wat nie voorheen aan eiendomsbelasting en paslike verbruikerstariewe onderworpe was nie. Addisionele inkomstebronne soos streeks- en vestigingsheffings, grondbelasting en brandstofheffing, wat as inkomstebronne vir plaaslike owerhede geskik is, moet verder ondersoek word. Indien verhogings van bestaande belastings of nuwe maatreëls ingestel word, moet dit met inagneming van die totale belastinglas, uitvoerbaarheid en politieke aanvaarbaarheid daarvan gedoen word. Plaaslike owerhede is geregtig op ‘n voorspelbare en regverdige verdeling van nasionale inkomste op vertikale sowel as horisontale basisse. Die horisontale verdeling is vanaf 1999 gebaseer op formules wat voordeliger vir plaaslike owerhede was. Vennootskappe van openbare en private instansies kan private instansies se bestuurskundigheid en kapitaal ten goede gebruik, maar behoorlike beleid en riglyne vir die uitvoering daarvan is nodig sodat nadelige mededinging nie tussen die twee sektore ontstaan nie. Lenings kan gebruik word om fondse vir kapitaalbesteding aan te vul, maar die nasionale regering moet duidelike riglyne stel om 'n sterk en innoverende sekondere mark vir lang- en korttermyn munisipale skuldbriewe te ontwikkel. ENGLISH: The role of local government is not restricted to service delivery, and includes the development of local communities to improve the standard of living for all in South Africa. Addressing the needs of disadvantaged communities must be accorded priority by local government. This will require major financial outlays in order to overcome the existing backlogs. Local governments generally have hardly sufficient revenue sources to render essential services satisfactory. They will thus find it difficult to serve as development institutions. Every local authority must strive to exploit existing revenue optimally. The tax base can be extended to include areas which were previously excluded from property taxation and appropriate user charges. Additional revenue sources such as regional service and establishment levies, land tax and fuel levies, which could be suitable revenue sources for local governments, should be investigated further. However, if new taxes were to be imposed, their impact on the total tax burden, practicability and political acceptance must be considered. Local governments are entitled to a predictable and equitable share of national revenue, on vertical and horizontal bases. Since 1999 the horizontal division has been based on formulas, which were more advantageous for local authorities. Partnerships of public and private institutions could make it possible for public institutions to better exploit the management expertise and capital of the private institutions, but this will require proper policies and guidelines to avoid detrimental competition between the two sectors. Loans may be used to supplement funds for capital expenditure, but the national government must provide clear guidelines to facilitate the development of a significant and innovative secondary market for short and long term municipal bonds. / Dissertation (MCom (Taxation))--University of Pretoria, 2006. / Taxation / unrestricted

Thesis (MDF)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: Poor financial management and a lack of financial performance are some of the major challenges that affect local government in South Africa. This has raised concern with regard to the financial sustainability of local government in South Africa. Furthermore, the poor state of financials in local government has directly impacted the ability of local government to execute and deliver on its constitutional mandate to deliver basic public services and goods to local communities. The lack of service delivery by local government has since resulted in service delivery protests around the country which have often turned violent. The improvement of the financial function in local government is said to have the ability to improve the general functioning of local government and lead not only to the delivery of basic public services to communities but also facilitate development in those communities. Thus, the objective of this study was to analyse and determine the drivers of financial performance and financial sustainability of local government in South Africa. The data that was used for the study is from all 278 municipalities in South Africa for the year 2013/2014. The study used regression analysis (Chi-Squared) with financial distress (performance) as a dependent variable and the following as explanatory variables: Type of municipality, cash cover, cash balances, reliance on grants and transfers, overspending, underspending, debtor growth, debtors as a percentage of own revenue and capacity in the key positions of the municipality. The regression analysis was supported by a contingency table and decision tress. The results and findings of the study are consistent with literature and indicate that the type of municipality, the degree to which a municipality relies on government grants and transfers, the manner in which a municipality manages it debtors, cash, creditors, its spending (in comparison to its budgets) as well as the extent to which municipalities adhere to legislative compliance all affect financial performance in local government in South Africa.

M.Com. (Development Economics) / The Local Government Equitable Share (LES) is a lump sum unconditional grant that is legally entitled to municipalities in South Africa. The grant aims to supplement municipal own revenues in the delivery of services. However, increases in the LES allocations to municipalities have coincided with increased service delivery protests and poor revenue management on the part of local government. Given these trends and the ultimate goal of the LES, it is important to assess the actual impact this grant is having on local government fiscal decision. This minor dissertation evaluates the impact of the LES on the expenditure and revenue decisions and performance of local government in South Africa. Specifically, the research seeks to ascertain the nature of such impacts in terms of how expenditure and revenue decisions are adjusted with this grant funding and whether such funds may be creating adverse incentives on the part of local governments to spend inefficiently and/or not maximising their effort in collecting own revenues. The analysis uses a cross sectional dataset for a sample of 129 municipalities for the 2009/10 municipal financial year, with the Stochastic Frontier Analysis as the primary methodology. The analysis finds that the LES has no statistically significant impact on municipal operating expenditure. This suggests that the funds from this grant might not have contributed to municipal service outputs in the 2009/10 financial year. Furthermore, the results found that the LES is positively correlated with expenditure inefficiencies and poor tax/revenue effort. This suggests that the LES funds create perverse incentives for local government to waste LES funds and not collect revenues from local taxes. The latter is due to municipalities substituting tax revenues with funds from the LES, hence resulting in the LES not having an impact on overall expenditure.

Thesis (MBA.) -- University of Limpopo, 2007 / The Department of Health and Social Development in Limpopo endeavors to efficiently and effectively manage revenue collection. The study analyzed the revenue collection for the Capricorn district hospitals from 2001 to 2006 by identifying problems and possible solutions related to revenue collection. A quantitative analysis of data has been obtained from in- depth structured interviews and revenue records. An analytic retrospective study design was used. All revenue records from 2001/2002 to 2006/2007, financial managers, revenue clerks, and clients /patients who came to request credit from each hospital constituted the population of the study. The findings were that in 2001/2002 none of the hospitals were able to attain the revenue targets. In 2005/2006 revenue targets were increased by almost double the amount however all hospitals were able to attain the revenue targets as prescribed. It implies that the hospitals were able to collect more revenue than in the previous financial year. It has been noted that the appointment of CEOs has brought a tremendous change in revenue collection. It has been identified that revenue is the life blood for a country or institution. The institutions need commitment of all stakeholders to collect revenue.

The third sphere of government (Local Government) has been persistently clouded by unfavourable Annual Financial Statement (AFS) audit reports. This results in local government losing credibility and its stakeholders losing confidence in the institutions or municipalities. In-depth analysis of the root cause of this dilemma is an opportunity for the municipality to reorganise its house and redeem its dignity and credibility to its stakeholders through addressing the identified challenges. The importance of the study can be attributed to the need to investigate the root causes of unfavourable audit opinion and recommend possible remedies that can assist municipalities to improve their audit report outcomes which in turn will improve the confidence of its stakeholders. The primary objective of the study was to investigate variables that impact on the audit report outcomes on annual financial statements of the municipalities that are within Alfred Nzo District (AND) Jurisdiction, including Alfred Nzo District Municipality (ANDM). This was achieved through investigating the root causes of the audit report outcomes with specific focus on the relationship that exists between the management role and audit outcomes of the Alfred Nzo District Municipalities. This was measured by the municipality’s leadership, governance, internal controls and human capital management. Convenient sampling was used wherein 150 questionnaires (30 per municipality) were sent out to the selected employees in all the municipalities in the Alfred Nzo District. Out of the questionnaires that were sent out, 103 responses were received. These were analysed to draw findings, conclusion and recommendations. The empirical results of the study revealed that there is strong evidence that leadership, governance and human capital management have a positive influence on the municipality’s AFS audit report outcomes. It also revealed that there is overwhelming evidence that internal controls have a positive influence on the municipality’s AFS audit report outcomes. The study recommends how leadership, governance, internal controls and human capital management must be improved. It also provides future research recommendations to improve this study.

The Local Government: Transition Act (LGTA) (Act No. 209 of 1993) provided an overarching framework for the transformation of local government to usher in the new democratic dispensation for South Africa. According to the then named Department of Provincial and Local Government (DPLG, 2005:22), Local Government should deliver services effectively and efficiently without bias to all individuals in society. The White Paper on Local Government proposes that municipalities must develop mechanisms to ensure citizen participation in public policy initiation, formulation, monitoring and evaluating decision-making and implementation. The White Paper further introduced the notion of integrated development planning which was described as strategic frameworks to assist municipalities to fulfil developmental mandates and engage with stakeholder groups and local communities. This study focused on Umzumbe Local Municipality to comprehend its viability of the Integrated Development Plan (IDP), recommend mechanisms to promote community participation, enhance municipal service delivery, and structure a plan to address the emanating development needs. Furthermore, the aim was to establish the roles played by community members, and effort to participate in the IDP proceedings and evaluate the integrated development planning process through establishing community public participation methods. The data collected from both the communities and Municipal officials revealed a sharp contrast in what the Umzumbe Local Municipality believes to be effective community participation, including its understanding of the place and role of an IDP. Several recommendations were made to the Umzumbe Local Municipality which could assist both the Municipality and its communities to achieve a sound IDP planning and implementation. / Public Administration and Management / M. P. A.

Thesis (MBA.)-- University of Limpopo, 2007 / The Department of Health and Social Development in Limpopo endeavors to efficiently and effectively manage revenue collection. The study analyzed the revenue collection for the Capricorn district hospitals from 2001 to 2006 by identifying problems and possible solutions related to revenue collection. A quantitative analysis of data has been obtained from in- depth structured interviews and revenue records. An analytic retrospective study design was used. All revenue records from 2001/2002 to 2006/2007, financial managers, revenue clerks, and clients /patients who came to request credit from each hospital constituted the population of the study. The findings were that in 2001/2002 none of the hospitals were able to attain the revenue targets. In 2005/2006 revenue targets were increased by almost double the amount however all hospitals were able to attain the revenue targets as prescribed. It implies that the hospitals were able to collect more revenue than in the previous financial year. It has been noted that the appointment of CEOs has brought a tremendous change in revenue collection. It has been identified that revenue is the life blood for a country or institution. The institutions need commitment of all stakeholders to collect revenue.

Thesis (DTech (Public Management))--Cape Peninsula University of Technology, 2017. / From a municipal perspective non-payment means that consumers, rate-payers and citizens are not fulfilling their obligations towards a particular municipality, contributing to a situation of insufficient available cash for day-to-day service delivery. The current debt situation in municipalities can be linked to the creation of a culture of non-payment due to the political situation in South Africa pre- and post-1994. Sections 1.1, 1.2 and 1.3 present the contributions and reasons for the current debt situation per the three spheres of government. South African municipal debt increased by 88 percent (R44 billion) over the last five financial years, from R50 billion in 2009/2010 to R94 billion in 2013/2014. The trend of 15- 20 percent per year increase in debt precludes the effective, efficient and economic provision of essential and emergency services to communities. All municipalities need to ensure that an effective collection relationship exists and that municipalities implement policies, by-laws, processes, procedures and systems in this regard. However, many municipalities fail in their quest for effective collection, or lack the capacity to utilise enabling legislation to implement an efficient and effective debt collection framework. This research study was conducted in response to this scenario, to identify and document existing problems through the development of guidelines and a framework for effective cash and debt collection. The guidelines will assist municipalities in collecting their outstanding debts.

Thesis (MDF)--Stellenbosch University, 2014. / The aim of the study is to provide a framework for effective private sector participation in infrastructure development and finance, not to provide a rigid structure to guide the participation. Thus the framework is a flexible guide to guide the relationship with local governments. The study will be limited to the following aspects: - projects commissioned and managed by the local sphere of government in South Africa; - projects financed by funding outside of the national treasury budget allocations; and - infrastructure projects that may include physical infrastructure (roads), social infrastructure (clinic) and economic infrastructure (electrical substation). Even though the scope of the study may be limited, the study can provide critical insight in terms of private sector participation possibilities in infrastructure development in South Africa.

The need to achieve developmental local government in South Africa has necessitated that the municipalities and other government departments pay more attention to the poor so that they can be helped to live more fruitful lives and become the instruments for the growth of local economy. This study seeks to assess the impact of Local Economic Development (LED) initiatives in Mbhashe Local Municipality with special focus on the Maize Production Project (MPP). The areas of Mbhashe municipality that were included in the study include Ndakeni village near Dutywa, Tswele-litye near Willowvale and Madwaleni near Elliotdale. The study followed both the qualitative and quantitative research approaches and the respondents were made up of a sample of MPP beneficiaries from the three areas mentioned above, Community Leaders and the Officials. The objectives of the study were to identify MPP objectives, to identify challenges in the implementation of the MPP, to assess the availability of remedial measures and lastly, to assess whether the community has benefited from the maize production project or not. Among others, the objectives of the MPP were to maximise maize production, to make profit, to create employment opportunities for the unemployed. Only 13 percent of the surveyed beneficiaries believe that their expectations of this initiative were fully met. The majority (two thirds) believe that their expectations were partly met, whilst one in five (20 percent) believe that their expectations were not met at all. The MPP implementation challenges included delays caused by the municipal procurement processes, unfavourable climate conditions, poor service delivery by the appointed service providers who provide tractors, shortage of funds and late start for ploughing. Even though the remedial measures seem to be in place, the implementation and the communication of the strategies remains a big challenge. Furthermore a proportion of the respondents were unhappy with the public participation process that preceded the implementation of the project.According to the findings, two thirds (67 percent) of the surveyed farmers believe that their communities have benefited from the MPP, although one third (33 percent) disagreed. The challenges of an insufficient budget, procurement delays and late commencement of ploughing need to be addressed if the maize production initiative is to yield the desired results.