Section 72 Mid-Year Performance Report: What to Submit & When

The Section 72 mid-year report municipality submission is one of the most visible MFMA compliance deadlines: by 25 January each year, the mayor must table in council a mid-year budget and performance assessment for the first six months of the financial year. Late or incomplete Section 72 reports attract Auditor-General findings and National Treasury scrutiny, yet many municipalities still struggle with what exactly must be included and how to prepare it in time. This guide sets out what Section 72 requires under the Municipal Finance Management Act, who must submit, what the report must contain under Section 72(1)(a) to (e), a step-by-step preparation process, common mistakes, and how the right systems reduce the burden on finance teams.

For the monthly equivalent, see our Section 71 monthly report guide. For the full picture of municipal reporting obligations, see MFMA compliance requirements for 2026.

What Is the Section 72 Mid-Year Report?

The Section 72 mid-year report (often called the mid-year budget and performance assessment) is a statutory report that every South African municipality must prepare and table for the first six months of the financial year (July to December). It is not an internal management report; it is a public accountability document that shows how the municipality is performing against its approved budget and its service delivery and performance objectives. The purpose is to enable council, National Treasury, and the public to see whether the municipality is on track and whether an adjustments budget is needed before year-end.

Legal Basis

The obligation comes from Section 72 of the Municipal Finance Management Act (MFMA), Act 56 of 2003. The MFMA is the main law governing municipal financial management in South Africa. Section 72 requires the mayor to table a mid-year budget and performance assessment in the council. The content and format are further specified in the Municipal Budget and Reporting Regulations (MBRR) and National Treasury circulars. Compliance with Section 72 is one of the key MFMA compliance requirements tested by the Auditor-General.

Who Must Submit?

The mayor must table the Section 72 report in council. In practice, the accounting officer (the municipal manager) and the CFO are responsible for preparing the report; the mayor tables it. The report must also be submitted to National Treasury and the relevant provincial treasury, and must be made public (for example on the municipal website) within a specified period after the deadline. Clarify in your municipality who drafts, who reviews, and who signs off so that the 25 January deadline is met.

Deadline

The Section 72 mid-year report municipality must be tabled by 25 January each year. This date is fixed in the MFMA and applies to all municipalities regardless of council meeting schedules. Missing the deadline is a direct compliance failure and is regularly reported by the Auditor-General. Plan your process so that the report is ready for tabling and submission well before 25 January; many municipalities aim to have a final draft by mid-January to allow time for mayor and council processes.

What Must the Section 72 Report Include? Section 72(1)(a) to (e)

Section 72(1) of the MFMA sets out what the mid-year assessment must address. The following reflects the typical structure; always confirm against the latest MBRR and National Treasury circulars.

Section 72(1)(a): Revenue and Expenditure Performance

The report must show actual revenue and expenditure for the first six months against the approved budget. This means:

Revenue by source — property rates, service charges (water, electricity, sanitation, refuse), grants and subsidies, and other income, with budget and actual for the period. Significant shortfalls (e.g. lower collection than budgeted) must be explained, as they may justify an adjustments budget.
Operating expenditure by vote — actual spending against budget by vote or department for the six-month period. Material overspending or under-spending should be explained.
Capital expenditure — actual capital spending against budget by vote or project. Capital under-spending is often a focus of Treasury and the AG; the Section 72 report is the place to explain delays and any planned catch-up or reallocation.

The data should be consistent with your Section 71 monthly submissions; the mid-year report is in effect a consolidated view of the first six months. If your general ledger and budget are mSCOA-aligned and your monthly Section 71 process is sound, pulling Section 72(1)(a) data is largely a matter of aggregating and summarising.

Section 72(1)(b): Service Delivery and Performance Objectives

The report must assess performance against the municipality’s objectives — in particular, the Service Delivery and Budget Implementation Plan (SDBIP) and, where relevant, the Integrated Development Plan (IDP). This includes:

Progress on key performance indicators (KPIs) and targets approved in the SDBIP.
Service delivery indicators — for example, water and electricity delivery, refuse removal, road maintenance, or other outputs that link to the budget and to community outcomes.
Any material shortfalls or delays in service delivery, with reasons and corrective plans.

The Auditor-General assesses the quality of performance information; weak or unsupported Section 72(1)(b) content can lead to findings on both the mid-year report and the annual performance report. For tips on strengthening the full reporting chain, see how to achieve a clean municipal audit.

Section 72(1)(c): Evaluation of Whether Budget Adjustments Are Required

Section 72(1)(c) requires an evaluation of whether adjustments to the budget are needed. This is based on:

Revenue collection trends — if collection is significantly below budget, the municipality may need to reduce expenditure or adjust revenue assumptions in an adjustments budget.
Expenditure patterns — overspending in certain votes, or under-spending (e.g. on capital), may require virement or an adjustments budget to reallocate funds.
Changes in grants or other funding — late or reduced transfers from national or provincial government may require budget amendments.
Service delivery and operational realities — for example, the need to reprioritise spending to meet critical service delivery gaps.

The report should state clearly whether an adjustments budget is recommended and why.

Section 72(1)(d): Submission and Recommendations

The report must be submitted to the mayor (for tabling in council), National Treasury, and the relevant provincial treasury. It must include recommendations on any necessary budget adjustments. In practice, this means:

A clear recommendation from the accounting officer/municipal manager (and reflected in the mayor’s tabling) on whether to adopt an adjustments budget and, if so, the main proposed changes.
Submission to all three recipients (council via the mayor, National Treasury, provincial treasury) in line with the prescribed process (e.g. via the local government reporting portal where applicable).

Submitting only to council or only to Treasury is non-compliance. Ensure your compliance calendar assigns responsibility for each submission.

Section 72(1)(e): Revised Projections and Adjustment Budget

Section 72(1)(e) requires recommendations on whether an adjustment budget is necessary and revised projections for revenue and expenditure where applicable. This typically includes:

A recommendation on the need for an adjustments budget (yes/no, with reasons).
Revised revenue and expenditure projections for the full financial year, taking into account actual performance in the first six months and any known or likely changes (e.g. grant adjustments, collection trends, delayed projects).
Where an adjustments budget is recommended, a high-level indication of the main adjustments (e.g. downward revision of revenue, reallocation between votes, rollover of under-spent capital).

This gives council and Treasury a clear basis for deciding whether to proceed with an adjustments budget and what it should contain.

Step-by-Step Section 72 Preparation

Use this process to prepare the Section 72 mid-year report municipality submission on time and to the required standard.

Step 1: Confirm Month-End Data for July to December

Ensure all six months (July to December) are closed and reconciled. Your Section 72 figures must align with your Section 71 monthly submissions and with the general ledger. Complete bank, debtors, creditors, and other key reconciliations for the period. Inconsistent or incomplete data is a common cause of AG findings and restatements.

Step 2: Compile Revenue and Expenditure Summary (72(1)(a))

Extract revenue by source and expenditure by vote (operating and capital) for the six-month period, with budget and actual. Use the same structure as your Section 71 and approved budget so that the report is comparable. Identify material variances and prepare brief explanations for each.

Step 3: Compile Performance Information (72(1)(b))

Gather SDBIP and service delivery data for the first six months. Ensure every KPI and indicator has a defined source and that actuals are supportable. Document reasons for any significant under-performance and the corrective actions planned. This section often takes longer than finance expects; involve performance management and line departments early.

Step 4: Evaluate Need for Adjustments Budget (72(1)(c) and (e))

Based on revenue and expenditure performance and any changes in grants or priorities, evaluate whether an adjustments budget is needed. Prepare revised full-year revenue and expenditure projections and draft clear recommendations for council. If possible, align with the format that will be used when the adjustments budget is tabled (if applicable).

Step 5: Draft Explanatory Narrative and Recommendations

Write the narrative that ties the numbers and performance together: key messages, material variances, risks, and recommendations. Ensure the recommendations in the report are explicit and actionable so that council and Treasury can see what is being proposed.

Step 6: Internal Review and Sign-Off

The CFO should review the draft for completeness, accuracy, and consistency with Section 71 and the approved budget. The municipal manager (accounting officer) must sign off before the report goes to the mayor. Resolve any discrepancies and ensure all Section 72(1)(a)–(e) elements are addressed.

Step 7: Table in Council and Submit to Treasury

The mayor tables the report in council by 25 January. Submit the report to National Treasury and the provincial treasury as prescribed (e.g. via the local government reporting portal). Publish the report on the municipal website within the period required by the MFMA or Treasury (e.g. within five working days of 25 January). Retain proof of submission and publication for audit purposes.

Common Section 72 Mistakes That Trigger AG Findings

The following failures appear repeatedly in Auditor-General reports. Avoiding them will strengthen your MFMA compliance and support a clean municipal audit.

Late tabling or submission. Missing the 25 January deadline is a direct breach of Section 72. Set an internal deadline (e.g. draft ready by 15 January) so that sign-off, council tabling, and Treasury submission can all be completed by 25 January.

Incomplete coverage of Section 72(1)(a)–(e). Omitting revenue and expenditure analysis, performance information, or clear recommendations on the adjustments budget leads to qualified opinions or findings. Use a checklist keyed to each paragraph of Section 72(1) to ensure nothing is missed.

Performance information not supported. The AG tests whether reported performance is valid and supported by evidence. Vague or unsubstantiated Section 72(1)(b) content creates audit risk. Ensure every indicator has a defined source and that working papers are available.

Figures that do not reconcile to Section 71 or the ledger. The mid-year report must be consistent with your monthly Section 71 submissions and the general ledger. Unexplained differences suggest poor reconciliation and attract AG attention. Reconcile Section 72 totals to the sum of monthly Section 71 data before submission.

Submitting to only one or two of the required recipients. The report must go to council (via the mayor), National Treasury, and provincial treasury, and must be made public. Submitting only to council or only to Treasury is non-compliance.

No clear recommendation on adjustments budget. Section 72(1)(c) and (e) require an evaluation and recommendation. A report that only describes performance without stating whether an adjustments budget is needed and why fails to meet the Act’s requirements.

How Software Supports Section 72 Reporting

Many municipalities compile the Section 72 report by pulling data from multiple spreadsheets or legacy systems and manually building the narrative. That approach is time-consuming and increases the risk of errors and missed deadlines. Finance staff spend days aggregating figures that could be generated from the same source data used for Section 71.

Municipal financial management systems that are aligned with mSCOA and the MBRR can produce Section 72(1)(a) revenue and expenditure summaries directly from the general ledger and budget. When monthly Section 71 reporting is already automated or semi-automated, the mid-year view is often a matter of running a consolidated report for July to December. That leaves more time for the performance section (72(1)(b)), the adjustments evaluation (72(1)(c) and (e)), and the narrative — the parts that require judgment and input from line departments. If you are evaluating software for your municipality, look for solutions that support both Section 71 and Section 72 reporting and that integrate budget, actuals, and performance data in one place. Dolobha is built for South African municipal finance and reporting, including Section 71 and Section 72.

Section 72 Preparation Checklist

Use this checklist before tabling and submission.

Resources

MFMA and MBRR: National Treasury — MFMA for the Act and MBRR; Section 72 and the regulations define content and timing.
Circulars and portal: National Treasury circulars and the local government reporting portal hold the latest submission instructions and templates.
Audit guidance: Review AGSA reports on local government for recurring Section 72 findings in your province or similar municipalities.

Meeting the Section 72 mid-year report municipality deadline with complete, accurate content is a cornerstone of MFMA compliance. With a clear process, ownership of each element in Section 72(1)(a)–(e), and systems that reduce manual aggregation, your team can table and submit on time and support council and Treasury in deciding on budget adjustments.