minimum competency regulations
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Minimum Competency Regulations. MUNICIPAL FINANCE MANAGEMENT ACT. No. 56 of 2003. TV Pillay MFMA Unit. Background. The White paper on Local Government - Systematic programme to develop high level management and front-line worker capacities in local government - PowerPoint PPT PresentationTRANSCRIPT
MUNICIPAL FINANCE MANAGEMENT ACT
TV PillayMFMA Unit
Minimum Competency Regulations
No. 56 of 2003
BackgroundBackground
The White paper on Local Government - Systematic programme to develop high level management and front-line worker capacities in local government
The Constitution - Section 154(1) - by legislative and other measures must strengthen municipal capacity
Municipal Finance Management Act – meet the objectives and assist implementation
Improving capacity and skills of officials (enhancing current and build new skills)
Address financial management challenges Reinforce sustainable practices Leading to improved delivery of services
ResearchResearch278 Senior municipal managers - levels of qualifications278 Senior municipal managers - levels of qualifications
Qualification EC FS GT KZN LM MP NC NW WC
Natio
nal
Natio
nal
%
No Data 0 2 0 1 0 1 4 1.4
Pre-Matric 0 0 1 0 0 1 0.4
Matric only 0 4 2 1 4 2 2 15 5.4
Matric and Diplomas 8 11 13 7 27 6 7 4 2 85 30.6
Undergraduate degree 8 2 10 8 9 4 5 8 1 55 19.8
Undergraduate degree and Diplomas 2 6 4 1 6 6 7 0 3 35 12.6
Under and post graduate 7 5 14 3 9 5 7 10 6 66 23.7
Under/Post graduate and Diplomas 4 1 0 4 5 1 1 1 0 17 6.1
Total 29 31 44 25 60 24 28 25 12 278 100%
ResearchResearch278 Senior municipal managers - levels of qualifications by sector/type278 Senior municipal managers - levels of qualifications by sector/type
Qualification EC FS GT KZN LM MP NC NW WC
Na
tion
al
Na
tion
al
%
No Data 0 2 0 1 0 0 1 0 0 4 1.4
Teaching 2 11 5 1 5 1 11 0 1 39 14.0
Finance 7 1 5 1 8 0 3 2 0 27 9.7
Legal 4 2 8 4 4 2 2 10 2 38 13.7
Public Admin. 10 6 13 12 34 11 5 8 4 103 37.1
Other 6 9 13 6 9 8 6 5 5 67 24.1
Total 29 31 44 25 60 22 28 25 12 278 100%
BackgroundBackground
MFMA sectionsS 83, 107 - Municipalities/ Entities
accounting officer, senior managers, CFO and other financial officials must meet financial management competency levels
S 119 - Supply Chain Management accounting officer and all other officials of a municipality or municipal entity involved in the implementation of the SCM policy must meet the prescribed competency levels
RegulationsRegulations
Who do the regulations apply to? Accounting Officer / Municipal Manager Chief Financial Officers All other Senior Managers (directly accountable
to AO) Financial Officials at middle management level Supply Chain Management - Heads of SCM
and Senior Managers directly accountable to the AO/MM
Differentiation by category (capacity & budget) Applies to municipalities & entities
RegulationsRegulations
Differentiation / Categories:Municipal capacity (High, Medium & Low)Functions performedBudget size:
< R500 million: 250 municipalities
> R500 million: 33 municipalities
Must include the budget of municipal entities
RegulationsRegulations Extensive consultation - dplg, SALGA, provincial
departments, DPSA, municipalities 6 regional workshops (all provinces) – March and
April– All municipalities invited– Total number of 558 participants
470 municipal officials 71 SALGA / dplg / Prov LG / Prov Treasuries 17 educational institutions
Complements other government efforts Consistent with the principles of the Municipal
Systems Act, including the Municipal Performance Regulations
RegulationsRegulations
Supports implementation Municipal Manager responsible for MFMA Assists in establishment of Budget and Treasury
Office Strengthen skills of top management team SCM Unit - greater integration Support employment of qualified personnel Improve recruitment processes and adverts for
MM, CFO, senior managers and SCM managers
Transitional ProvisionsTransitional Provisions
All municipalities and entities to commence assessment of officials to identify competency gaps
Enrol for SAQA recognised qualifications, registered service providers only (test based)
Attainment of competencies to be included in performance agreements
NQF 4 = matricNQF 5 = diplomaNQF 6 = degreeNQF 7 = honours & postgraduate
Prescribed Unit StandardsPrescribed Unit StandardsNQF
Level 5NQF
Level L6 Title 116339 Apply risk management in municipalities
116341 Conduct performance management to a municipal environment
116342Apply approaches to managing municipal income and expenditure within a multi-year framework
116343 Apply the principles of ethics in a municipal environment
116345 Apply the principles of budgeting within a municipality
116348Conduct stakeholder consultation around municipal finance programmes
116351 Conduct audits, planning and implementation in a municipality
116353 Participate in the design and implementation of municipal SCM
116358 Contribute to the strategic planning process in a municipality
116361Interpret legislation and policy affecting municipal financial management
116362 Manage a municipality's assets and liabilities
Prescribed Unit Standards (cont)Prescribed Unit Standards (cont)NQF
Level 5NQF
Level L6 Title 116363 Prepare and analyse municipal financial reports
116364 Plan a municipal budgeting and reporting cycle
119331Conduct working capital management activities in accordance with sound financial management policy
119334Discuss the selected legislative regulatory framework governing the public sector management and administration environment
119341 Apply cost management information systems in the preparation of management reports
119343 Apply operations research principles and tools in the management of project activities and resources
119348 Apply selected GRAP to periodic accounting reporting process
119350Apply accounting principles and procedures in the preparation of reports and decision making
119351 Apply principles of computerised systems to manage data and reports relevant to the public sector administration
119352Apply principles of information systems to public finance and administration
Recognition of Prior LearningRecognition of Prior Learning
Is the process of recognising and assigning credit values to the learning that a person has undertaken on an informal basis, for example, in the form of work experience or the attendance of short courses
1. Identify what the official knows and can do2. Match the official’s skills, knowledge and experience to
specific unit standards and strategic priorities3. Assess the official against unit standards4. Credit official according to assessment
These are activities carried out by an assessor (subject matter expert) accredited by SETA-ETQA
GuidelinesGuidelines
Competency
REGULATIONS
MFMA
CompetencyGUIDELINES
Accounting Officer
CompetencyGUIDELINES
ChiefFinancial Officer
CompetencyGUIDELINES
FinanceOfficials
MiddleManagement
CompetencyGUIDELINES
SeniorManagers
CompetencyGUIDELINES
Head SCM &
SCM Senior Managers
MUNICIPAL FINANCE MANAGEMENT ACT
Municipal Regulations on Minimum
Competency levels
Chief Financial Officer
No. 56 of 2003
Chief Financial OfficerChief Financial Officer
Qualification Municipal capacity and budget
At least NQF level 6, or
Certificate in Municipal Financial Management (SAQA No. 48965)
All Low capacity municipalities;Medium capacity municipalities with annual budgets of a value below R500 million for the current year;
Municipal entities with annual budgets of a value below R500 million for the current year.
At least NQF level 7, or
Chartered Accountant (SA)
All High capacity municipalities;Medium capacity municipalities with annual budgets of a value equal to or above R500 million for the current year;
Municipal entities with annual budgets of a value equal to or above R500 million for the current year.
Higher education qualification
DefinitionsDefinitions
Calculation of the value of the annual budget includes:
Total operating and capital expenditure
In the case of a parent municipality, the aggregated value of the annual budget of the municipality + its municipal entity(s)
Chief Financial OfficerChief Financial OfficerWork related experience:
Work-Related Experience
Municipal capacity and budget
5 years at middle
management level
All Low capacity municipalities;Medium capacity municipalities with annual budgets of a value below R500 million for the current year;
Municipal entities with annual budgets of a value below R500 million for the current year.
7 years at senior & middle management level (2 of the 7 years must be at senior management level)
All High capacity municipalities;Medium capacity municipalities with annual budgets of a value equal to or above R500 million for the current year;
Municipal entities with annual budgets of a value equal to or above R500 million for the current year.
Chief Financial OfficerChief Financial Officer
Competency areas: Unit Standards1. Strategic leadership and management - 2
2. Strategic financial management - 3
3. Operational financial management - 6
4. Governance, ethics & values in financial management-1
5. Financial and performance reporting - 4
6. Risk and change management - 1
7. Project management - 1
8. Legislation, policy and implementation -1
9. Stakeholder relations - 1
10. Supply Chain Management - 1
11. Audit and Assurance - 1
Chief Financial OfficerChief Financial Officer
Example - Unit Standards
Strategic financial management CFO required to be competent in unit
standard 116342 “Apply approaches to managing municipal
income and expenditure in a multi-year framework”
Chief Financial OfficerChief Financial Officer
Unit Standards include –
Specific outcomes and assessment criteria e.g.:
Develop approaches to managing a municipality's revenue in a sustainable manner
Apply the different approaches to forecasting municipal income and expenditure over the medium term
Contribute to the design of rates, tariffs and user charges
Chief Financial OfficerChief Financial Officer
Supporting Guideline: “Guideline for Municipal Competency levels:
Chief Financial Officers” Contains table of 11 competency areas
(pages 6 – 18) Each competency area in table linked to:
– specific competencies required
– detail of knowledge & skills required
Chief Financial OfficerChief Financial Officer
Guidelines example: Strategic Financial Management
(competency area 2) – page 7
“The ability to guide the management of an effective, economic and efficient finance function, supported by effective financial management policies and practices.”
Chief Financial OfficerChief Financial OfficerStrategic Financial management (cont):
Examples of knowledge & skills required: Formulating and implementing finance strategies,
which enhance good financial management and decision making practices across the finance function
Developing and implementing financial policies and systems to ensure efficient and effective financial administration
Developing, implementing and maintaining financial management guidelines, financial instructions, credit control procedures, debt collection and related financial policies
M F M A25National Treasury
ConsultationConsultation
Consider similar competency regs for other sectors
Apply higher levels for SCM officials
Support training initiatives from SETA and SAMDI
Further resources may be required for roll out
Explore possibility for further exemptions
MUNICIPAL FINANCE MANAGEMENT ACT
Municipal Regulations on Minimum
Competency levels
Monitoring and
Support
No. 56 of 2003
Monitoring & ReportingMonitoring & Reporting Municipal Manager/ Chief Executive Officer
responsible to monitor & ensure compliance Report twice yearly on compliance, as at
30 June & 31 December (using supporting schedule)
Submit copy to National and Provincial government within one month
Municipalities to include consolidated information on all entities
Disclosure - copy of 30 June report to be included in the municipal Annual Report
Monitoring & ReportingMonitoring & Reporting
Report to show the number of financial & SCM officials:
employed that have undergone assessmentwho’s performance agreements include
competency attainmentthat meet the competency levels
CommencementCommencement
Effective date: 1 July 2007
Fully operational: 1 January 2013
Phase-in
5 ½ years implementation
Guiding Implementation Guiding Implementation Steps for MMSteps for MM
1. Establish steering committee, reporting to the Municipal Manager
2. Staff competency assessment to identify gaps (assessor to be LGSETA accredited)
3. Prepare training strategy and budget up to 1/1/2013
4. Staff to undertake SAQA recognised training to address identified gaps
5. Performance agreements must incorporate attainment of competencies
6. Recruitment procedures to include new competency requirements
National Treasury SupportNational Treasury Support
Ongoing guidance and support towards effective implementation
Issuance of Circulars Review training provider material Engagement with service providers
– (WBS, Afrec, TuT) other universities MFMA Internship programme MFMA Foundation Interactive DVD Learning Workshops, seminars, events Finance Management Grant (partial support)
Training ProvidersTraining ProvidersSAQA recognised qualifications
– Certificate in Municipal Financial Management (SAQA ID No. 48965)
– National Diploma: Public Finance Management and Administration (SAQA ID No. 49554)
NT validated training courses– refer www.treasury.gov.za/mfma
under “Training & Validation”
MUNICIPAL FINANCE MANAGEMENT ACT
Municipal Regulations on Minimum
Competency levels
Thank You Website:
www.treasury.gov.za/mfmaEmail: [email protected]
No. 56 of 2003