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Approved Phokwane Municipality Investment and Cash Management Policy 2025-2026

Phokwane Local MunicipalityRef: R.308

Official source

Source domain: phokwane.gov.za

Collected on 28 July 2026

Always confirm details on the official source before acting.

Our copy (archived 28 July 2026)Official source

What this means

This document is the approved Phokwane Municipality Investment and Cash Management Policy for the 2025/2026 financial period. It sets out responsibilities under the Municipal Finance Management Act (MFMA) for cash management and investments, including how the Municipal Manager and Chief Financial Officer must handle banking, debtor collections, creditor payments, receipts, and stock control. It also specifies investment objectives, approval and signatory requirements, quotation procedures, reporting duties to the Auditor-General, and the types of legally permitted investment instruments. The policy further requires cash flow forecasting before investing, generally reinvesting every three months when investments mature, and applying strict investment ethics (no outside interference, no bribery, and limits on gifts).

Facts

Reference

R.308

Key Takeaways

  • Approved Phokwane Municipality Investment and Cash Management Policy 2025/2026
  • MFMA section 60: Municipal Manager is accounting officer; may delegate; Municipal Manager accountable for transactions by designates
  • MFMA section 13: establishes cash management and investment policy
  • Investment objective: highest possible return without unnecessary risk during periods of excess funds
  • CFO responsible for systems/procedures/training for banking and cash management
  • Debtor collections: collect timeously and bank daily; shortages make cashier/person liable; disciplinary action may lead to dismissal
  • Large cash receipts must be deposited same day; all monies banked in primary bank account
  • Creditor payments: limit to one payment per creditor per month; prefer electronic transfer where available
  • Receipts: numbered official receipts/cash tickets; cancelled receipt forms reattached; computer receipts filed for audit
  • Investment approvals: if Municipal Manager recommends to Council, quotations required from financial institutions; telephonic quotations require name, terms/rates, and interest payment/maturation details
  • EFT for investments: both Municipal Manager and CFO (or delegates) must authorise and affect
  • Investment documents: two signatories required (Municipal Manager and CFO or delegates); specimen signatures required by financial institutions
  • Auditor-General reporting: financial institution holding investments must notify Auditor-General within 30 days after financial year-end with opening/closing balances
  • Investment ethics: no outside interference; no forced/bribed investments; gifts only if negligible and goodwill; gift certificate to Council; not in lieu of commission
  • Permitted investments listed under Gazette notice R.308 (Gazette No. 27431) and legislation (GAMAP 106, MFMA)
  • Phokwane Municipality
  • Municipal Manager
  • Chief Financial Officer (CFO)
  • Auditor-General
  • National Treasury
  • Council of Phokwane Municipality
  • Financial institutions (banks, insurance companies, etc.)
  • Minister of Finance
  • Public Investment Commissioners
  • Registry Clerk
  • Cashier
  • Local Government Transition Act, 1996
  • Banks Act, 1990 (Act No. 94 of 1990)
  • Public Deposits Act, 1984 (Act No. 46 of 1984)
  • Municipal Finance Management Act, 2000 (MFMA)