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Compliance within the areas of financial management legislation and division of revenue for improved service delivery has to always speak to each other according to the integrated Development Plan (IDP), the overall local government legislation and the Constitution. There Is a relationship between the citizens, public revenue and officials, as well as politicians that act as 'messengers,' who interface with both the citizens and the municipalities. For the municipality to be functional, available resources must be used optimally and for the benefit of the citizens at large. This is arguably not the case in practice although there are policies, procedures and legislation in place to ensure that such measures are implemented. There are always loopholes and challenges that hinder effective implementation due to ignorance, inadequate control measures and non-compliance in the management of public resources. Non-compliance has been prevalent in the public sector, and local government is no exception, as some officials entrusted with compliance are able to manipulate the systems in place and engage In corrupt practices. It follows then that inconsistency in legislative compliance becomes not only a problem in municipal financial management, but becomes expansive in other avenues and legislation. The study will focus on local government financial management and finding a synergy between such management and division of revenue. The Inadequacy in compliance may be as a result of the varying challenges that are faced at local government level, due to size, location and different categories of municipalities; thus the different priorities of citizens they render services to. The size and location of the municipality then tends to influence the nature of community needs. The study wlll look at interventions sought to regulate and rationalise overall financial management at local government level, as well as the appreciation of the varying nature of municipalities in the current