One of the most important duties of a municipal council is to manage its funds effectively. This means –

• Drawing up a budget – working out what income the municipality will receive and balancing this with what they think they will have to spend it on
• Protecting the income, capital and assets such as money in the bank, motor vehicles, computer equipment, by putting in proper controls
• Monitoring the actual income and expenditure and comparing this to the budget through regular financial reporting and taking action to correct things when necessary
• Auditing on a regular basis and reporting the financial statements to all stakeholders