NLGFC functional structure

The committee is serviced by a secretariat headed by the executive secretary. The secretariat has two broad divisions: the council of finance management services and finance and administration.

The council finance management services division represents the functional link of the NLGFC and the councils.

It has two sections; the planning and economic services and finance monitoring and evaluation.

The planning and services section looks at Local Authority (LA) budgeting, resource allocation and revenue mobilisation. It also looks at LA planning in relation to the budget and collaborates with the Ministry of Local Government and Rural Development (MLGRD) and Ministry of Economic Planning and Development (MOEPD).

The financial monitoring and evaluation section works with councils in the areas of accounting, financial management, resource utilisation, auditing and financial systems development.

The financial and administration division is a support wing of the NLGFC. It manages the LA payroll system.

Working relationship with councils

The main areas of interaction with councils include:

i) Budgeting;

ii) Accounting and financial management;

iii) Resource allocation

The NLGFC establishment and mandate

The NLGFC is an institution provided for under the provisions of S149 of the Constitution of the Republic of Malawi.

It is an institution that is placed to drive the fiscal decentralisation processes.

Its mandate and roles are derived from the Constitution and are as follows:

1. Receive budget estimates from all LAs.

2. Supervise and audit accounts of LAs subject to the recommendations of the Auditor General.

3. Make recommendations relating to the distribution of funds allocated to local government authorities;

4. Prepare a consolidated budget for all LAs after consultation with the Treasury which shall be presented to the National Assembly by the Minister of LG&RD and;

5. Make application for supplementary funds.

The LGA, 1998 also gives powers to the NLGFC to disallow and surcharge any item of expenditure irregularly drawn by an office of the council.

Membership of LGFC

The membership of the NLGFC is as follows:

1. A representative of the Malawi Electoral Commission;

2. The chairperson of the Civil Service Commission

3. The secretary of the Local Government

4. The secretary to the Treasury

5. A representative of Local Government Authorities.

6. An independent professional accountant

The committee co-opted a representative from the National Audit Office and the Accountant General to help the committee. The committee was established in July 2001 and it is serviced by a secretariat which was set up in October 2001.