N5 – Module 3
Just as with appointed members of the cabinet, all members of the executive council are required to be accountable, collectively and individually for the performance of their departments. Cabinet budgets for services to be rendered within the jurisdictional limits of each province, and the members of the executive council of each province are required to be accountable for the spending of this revenue. Although the ultimate executive authority of each province lies with the Premier, they rely heavily on the members of the executive council for the execution and delivery of services to the public. It would, obviously, be extremely unwise and unlikely that an executive council decision of a particular province would be directly opposed to the policy of the national government. It is, however, understandable that there should sometimes exist differences of opinion about the provision of services between provinces and the allocation of funds by central government.
Local Government Level The finance committee has the same responsibilities and functions on local government level as the cabinet does in the central government. Members of this committee, headed by the chairperson, report directly to the legislative authority – usually commonly known as the town council. This committee may be dismissed by the local legislature and the principle of individual and collective responsibility and accountability applies here as it does at central government level.
The local legislature (town council in a city) must legislate – that is makes laws, and with regard to public finance, decide on the following: • The tax rate – property tax, for instance; • Consumer tariffs, user charges for public services; • The raising of loans to the city; • Capital expenditure; • Operational expenditure (please make sure you know the difference between capital and operational budgets);
• The creation and management of special funds.
The local legislature is responsible for reporting to the voter-cum-taxpayer on these matters and it is the task of the local executive authority to lend support in this. The finance committee fulfils this function. A strong finance committee is essential for the supervision and control of all financial activities – the collection, safe-keeping and spending of public money; the raising of loans, the arranging of insurances and the managing of reserve funds, renewal funds, etc.
The members should be experts in the sense that they are probably employed in the financial sector of local industry and commerce. They are also responsible for making recommendations on ways to economise and for the introduction of improvements to financing and even, sometimes, supplying public services. All the activities of council are, therefore, co-ordinated by the finance committee.
Other committees under legislature make recommendations to local council for new or improved services and the finance committee will give sound financial advice as to whether these recommendations are workable or not. The finance committee, like the cabinet, may not usurp (assume or capture) the authority of the local legislature. Instead they act in an advisory capacity. It would be extremely unusual, though, for the local legislature to ignore their recommendations and advice.
An operational committee may be formed as a sub-committee of the finance committee. They will concern themselves with the running and execution of operational budgets. They will, therefore, control all spending, the resources which are allocated to them for such, and demand accountability from officials serving the local town council.
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