Analysis of municipalities financial reporting for internal decision-making in Mahikeng Local Municipality North-West Province

Abstract

Accounting information is the language of business as it is the basic tool for recording , reporting and evaluating economic events and transactions that affect business enterprises to assist in decision-making.This study therefore analysed the Municipality's financial reporting for internal decision-making in Mahikeng Local Municipality of the North West Province. Both Quantitative and Quantitative method approaches were used. Data were collected using a questionnaire instrument developed through review of literature along with focus group findings. Out of 60 responses received , 85.0% of the respondents indicated that experience of political and administrative actors in utilising accounting information for budgeting processes was influential in the Mahikeng Local Municipality; 83.3% of the respondents highlighted that knowledge will enhance the decision-making processes for budgeting purposes; 74.7% of the respondents indicated that legal and technical requirements of the budget cycle will tremendously influence the budget decision-making processes at Mahikeng Local Municipality; 73.3% of the respondents were in consensus that the organisation performance is key to budgeting decision, as it will influence how accounting information will be used to budget adequately. It has been recommended that leadership, whether political or not, should use organisational culture which is driven by regulations. Budget Efficiency is indicated as efficiency in Budget preparation, efficiency in Budget Approval and efficiency in Budget Implementation. Management capacity would add value