Assets & Insurance

The proper utilization and management of assets is one of the prime mechanisms by which a municipality can fulfil its constitutional objectives for:

• Delivery of sustainable services;
• Promotion of Social and economic development;
• Promoting a safe and healthy environment and,
• Providing for the basic needs to the community.

The municipality has a legal and moral obligation to ensure it implements policies to provide for the effective and efficient usage of its assets over the useful life thereof.  The asset management policy deals with the municipal rules required to ensure the enforcement of appropriate stewardship of assets.  Stewardship has three components being the:

• Management, utilization and control by the Municipal Officials.
• Financial administration by the Chief Financial Officer, and
• Physical administration by the Asset and Property Managers

Statutory provisions exist to protect public property against arbitrary and inappropriate management or disposal by a local government.  Accounting standards are set to ensure the appropriate financial treatment for property, plant and equipment. The requirements of these accounting standards include:

• The compilation of asset registers recording all assets controlled by the municipality.
• Accounting treatment for the acquisition, disposal, recording and depreciation of property, plant and equipment.
• The standards to which these financial records must be maintained.

Disposal of asset approved by Council:

Council Resolution 31 May 2021

It is required of the Municipal Manager as the accounting officer, to take all reasonable steps to ensure that the Council has and implements crucial policies for effective financial and risk management. The safeguarding of assets and the protection of Council against liabilities, is very important, which forms part of proper assets & insurance management systems as prescribed by Section 63 of the Municipal Finance Management Act, Act 56 of 2003.

A standard for short-term insurance in the municipal environment had been prepared that takes all circumstances related to the municipality into account. There are however aspects in addition to this standard, that the Council can decide on as policy, in order to reduce premium without an increase in risk, or where the Council is prepared to accept risk because of a very slim probability that an event might occur.