www.imfo.co.za. PRESENTATION OUTLINE. NSDIII /FUTURE ROLE OF IMFO AS PROFESSIONAL BODYTOWARDS A REVIEW OF LOCAL GOVT FINANCIAL SYSTEMLGTASABOUT IMFOIMFO MEMBERSHIPSTRENGTHSTHE VERDICT. GOALS OF THE NSDS III. www.imfo.co.za. Establishing a credible institutional mechanism for skills planning
1. www.imfo.co.za IMFO WESTERN CAPE BRANCH SEMINAR & AGM 6-7 JUNE 2011 TURN AROUND STRATEGIES- THE
Presented By: Sidwell Mofokeng IMFO GENERAL VICE PRESIDENT
2. www.imfo.co.za PRESENTATION OUTLINE NSDIII /FUTURE ROLE OF IMFO AS PROFESSIONAL BODY
TOWARDS A REVIEW OF LOCAL GOVT FINANCIAL SYSTEM
3. GOALS OF THE NSDS III www.imfo.co.za Establishing a credible institutional mechanism for skills planning
Increasing access to occupationally-directed programmes
Promoting the growth of a public FET college system that is responsive to sector, local, regional and national skills needs and priorities
Addressing the low level of youth and adult language and numeracy skills to enable additional training
Encouraging better use of workplace-based skills development
Support to small enterprises (including non-profit organisations), cooperatives and worker-initiated training initiatives
Increasing public sector capacity for improved service delivery and supporting the building of a developmental state
Building career and vocational guidance
4. OVERVIEW www.imfo.co.za NSDS III is formulated in the context of an integration of higher and further education and skills development into a single Department of Higher Education and Training.
It is aimed at ensuring improved access to quality learning programmes, increased relevance of skills development interventions and building strong partnerships between stakeholders and social partners.
It seek to steer investment in education and training and skills development in order to achieve our vision of a skilled and capable workforce to support an inclusive economic growth path and social development
5. Key areas of focus of NSDS III www.imfo.co.za
6. Work integrated learning www.imfo.co.za Developing professionals is in many respects a multifaceted problem: organisational commitment, an adequate supply of supervisors and mentors, the role of incentives, systems for managing training
Biggest problem is the rate of conversion of candidates to registered professionals in most professions
Links to companies is essential for most professions, together with SETAs
Young people desperately need coaching, supervision, and mentoring
They further require extended support for success, and maybe some foundation courses
7. ROLE OF SETAs www.imfo.co.za SETAs are key in achievement of the NSDS III goals
They are expected to facilitate the delivery of sector specific skills interventions that help achieve the goals of the NSDS III
They must undertake sector-based initiatives and collaborate on cross-sector skills areas to enable collective impact
Through SSPs we should build a connected labour market information system across all the sectors, which is an important evidence base for skills development and its impact
SETAs must ensure that there is strong employer leadership and ownership of sector skills activities and be able to articulate the collective skills needs of their stakeholders/members – levy paying and non-levy paying members – incl professional bodies
Together with professional bodies, they must monitor and manage occupational standards to make sure that provision of training, including the qualifications gained, meet sector, cross-sector and occupational needs
8. REGISTRATION AS A PROFFESSSIONAL BODY I.T.O OF THE NEW SAQA GUIDELINES Analysis by DHET on the involvement of professional bodies with universities and their graduates it was clear that professional bodies primarily accredit programmes and then consider students for professional registration after they graduated. There are, but for the exception of a few, no involvement of professional bodies in the development of students prior to graduation, other than making demands on institutions of what the curriculum content must be for accreditation by themselves. This is a point of serious concern
Statutory bodies required by law to be actively involved in developing professional education and training while non-statutory bodies claim an interest therein. Be they statutory on non-statutory, professional bodies generally perform three primary functions.
9. REGISTRATION AS A PROFFESSSIONAL BODY I.T.O OF THE NEW SAQA GUIDELINES Firstly they set up and safeguard public interest, thereby providing them with vitally needed legitimacy. Secondly they represent the interest of the professional practitioners, thereby acting similarly to a professional association or type of trade union.
Thirdly, a professional body represents its own self-interest by acting in a manner that safeguards their own position as a controlling body in a given profession. Herein lies the risk that control, legitimated by public interest, becomes confounded by control based on self-interest.
10. REGISTRATION AS A PROFFESSSIONAL BODY I.T.O OF THE NEW SAQA GUIDELINES 1/.. Criteria for recognising a professional body
Section 24. A body applying to be recognised as a professional body by SAQA shall:
Protect the interest and the professional status of its members.
Protect the public interest in relation to services provided by practitioners and the associated risks.
Show evidence of inherent social responsibility and advancing the objectives of the NQF.
Be a legally constituted entity with the necessary human and financial resources to undertake its functions, governed either by a statute, charter or a constitution and compliant with and adhere to good corporate governance practices.
Represent, and where applicable, also regulate, a recognised community of expert practitioners.
Apply peer judgement in decision making.
Develop, award and revoke its professional designations in terms of its own rules, legislation and/or international conventions.
11. REGISTRATION AS A PROFFESSSIONAL BODY I.T.O OF THE NEW SAQA GUIDELINES 2/.. Monitor its professional designations in terms of its own rules, legislation and/or international conventions.
Manage the revocation of designations, as well as disciplinary matters, appeals and complaints in a transparent manner and in terms of its own rules, legislation and/or international conventions.
Set criteria for, promote and monitor continuing professional development (CPD) for its members to meet the relevant professional designation requirements.
Show evidence of a fully functional information management system compatible with the National Learners’ Records Database.
Monitor compliance with an agreed code of conduct and/or ethics, including criminal record screening where applicable.
Co-operate with the relevant QCs in respect of qualifications and quality assurance in its occupational field.
Not be accredited as a provider by a QC.
Be involved in the development of a body of specialised knowledge taking due cognisance of national and international benchmarks.
Not be registered as a provider with the Department of Higher Education and Training.
12. Towards a Review of the Local Government Financial System According to the Deputy Minister of COGTA:
A key premise of the current financial model is wrong. It’s based on the presumption that municipalities can raise 95% of their own revenue. But this was the case before 1994 when municipalities had much smaller boundaries, mostly excluded the African majority, and had a limited service delivery role! It could not apply to the new municipalities, with their larger boundaries, significantly bigger numbers of residents, and expanded developmental role. ( Black Local Authorities Act made provision )
Clearly, local government needs to be allocated more funds from the national budget. But this, in itself, will not solve its financial problems. Local government will have to be assisted with capacity to spend its funds more productively and effectively. www.imfo.co.za
13. Towards a Review of the Local Government Financial System Cntd/1.
Many municipalities do not have sufficiently qualified people to manage their funds effectively. Poorer municipalities are unable to pay for the technical skills they need. In the 2009/10 financial year, municipalities were unable to spend 17,1 % of their Capital Budget. Some municipalities also mismanage their funds, using them unproductively or for purposes that do not serve service delivery and development goals.
14. But municipalities also need to raise more of the revenue due to them, especially from those who can afford to pay. By December 2010, the municipal debt had reached R62.3 billion. 61.9 % (R38.3 billion) of the debt owed is owed by residents, 20.7 % (R12.8 billion), by businesses, 5.1 % (R3.1 billion) by national and provincial departments and 12.4 % (R7.6 billion) by others. According to Cogta, these “others” refer to, among others, debtors in respect to traffic fines, dumping sites and cemeteries. www.imfo.co.za Towards a Review of the Local Government Financial System Cntd/2.
15. Some municipalities, especially in the rural areas, are technically unviable – they do not have a minimal economic, financial or revenue base. The majority of the people living in these municipalities are indigent. These municipalities depend substantially on intergovernmental transfers to survive. The transfers are used up mainly on salaries and operational expenses with very little money left over for service delivery. Then there are the unfunded mandates – municipalities fulfill provincial functions like libraries, aspects of health and social services, including early childhood development, and homes for the elderly, disabled and abused women. Municipalities get no or little money for this from the provinces!
Given all these challenges what needs to be done???? www.imfo.co.za Towards a Review of the Local Government Financial System Cntd/3.
16. What need to be done??? www.imfo.co.za REVIEW OF INTERGOVERNMENTAL FISCAL SYSTEM
There needs to be an expeditious and significant overhaul of the current Intergovernmental Fiscal System, including the formula for the “equitable share” – the allocation of money from the national budget to each sphere of government. But there also needs to be a review of the formula used to distribute the “equitable share” among the 278 municipalities. The formula needs to directly take into account the specific spatial development patterns, extent of indigent residents, capacity to raise revenue and cost of providing services of a municipality.
INTENSIFYING CAPACITY-BUIILDING PROGRAMMES
- The financial and other capacity-building programmes of municipalities need to be intensified. CoGTA is working with National Treasury, the Auditor General’s Office, SALGA (South African Local Government Association) and other institutions to ensure this. The role of Professional bodies cannot be over emphasised.
17. The Municipal Systems Amendment Bill, recently passed by parliament, which is aimed at the greater professionalization of the administration in municipalities, including through providing for minimum qualifications for senior managers, will also assist in strengthening the financial capacity of municipalities.
IMPROVING AUDITS The “Operation Clean Audit” campaign, which is aimed at ensuring municipalities receive unqualified audits by 2014, needs to be intensified. The campaign aims to strengthen the capacity of municipalities to ensure efficient financial management, accountability, transparency and value-for-money activities. Improved financial systems will lead to greater service delivery and development. www.imfo.co.za What need to be done??? Cntd/2...
18. ACCELERATING LGTAS Obviously, addressing the financial challenges of municipalities cannot be separated from dealing with the overall challenges of municipalities. These overall challenges are going to be dealt with more actively through the consolidation and acceleration of the LGTAS (Local Government Turnaround Strategy). This is the CoGTA’s major priority in the months ahead. The LGTAS has become the RDP (Reconstruction and Development
Programme) of local government. It is encapsulated in the outcome 9 Performance Agreement the CoGTA Minister signed with the President. It is the basis on which the public will ultimately judge CoGTA’s performance – and we simply have to deliver on our commitments.
www.imfo.co.za What need to be done??? Cntd/2...
19. Local Government Turn Around Strategy State of Local Government in South Africa: Overview Report (action research; investigations; reviews; consultations)
Meeting President; Mayors; Premiers and MECs (20 October 2009)
National Local Government Indaba (21-22 October 2009)
Attended by senior management and political leaders (approx 1 000 delegates)
Declaration developed which endorsed need for a national local government turnaround strategy
Set of proposals to guide process forward (based on work done in commissions www.imfo.co.za
20. www.imfo.co.za Over-Arching Aim
21. Considerations Underpinned by 2 considerations
“One size fits all” approach to municipalities is not appropriate or acceptable
Responsibilities of municipalities must match capacities and the state must ensure that all citizens are provided with basic services irrespective of which municipalities they live in
Problems in local government are both a result of internal factors within the direct control of municipalities as well as external factors over which municipalities do not have much control
22. Strategic Objectives 5 Strategic Objectives
- Ensure that municipalities meet basic needs of communities.
- Build clean, effective, responsive and accountable local government
- Improve functionality, performance and professionalism in municipalities
- Improve national policy, oversight and support
- Strengthen partnerships between local government, communities and civil society
23. Government-Wide Effort The LGTAS represents extraordinary Government-wide effort led by Minister of COGTA to improve overall functioning of the Local Government system and accelerate service delivery
24. Implementation LGTAS Differentiated support system with focus on two interrelated streams
Institutional measure to facilitate improved delivery of infrastructure and services
Structural, policy, legislative and capacity building measures over the longer term
The implementation of the LGTAS will be supported by national Govt addressing a range of longer-term and more systemic issues that contributed to failure or distress within local Govt
Intergovernmental co-ordination and support
Supervision, monitoring and interventions
Allow for “early warning” systems re municipal failure
Provide for sharper and more immediate preventative interventions
Incentives and disincentives – how built into fiscal and support frameworks to incentivize change
25. Implementation LGTAS (2) Each municipalities to develop its own LGTAS guided by the strategic objectives of the national strategy by end March 2010
Institutional Maps will be distributed to national and provincial sector departments; SoE; statutory bodies; stakeholder groupings and ward committees. These groupings will input responsibilities and commitments onto maps which will provide an audit of where support is committed; located and its valu
A special Ministerial Advisory and Monitoring Structure to be established to ensure that all role players are effectively contributing to the LGTAS
IGWG has been set up to support implementation (national sector depts; offices of the Provincial Premiers and Dept Local Govt and SALGA
Technical Support Units will be established provincially and be coordinated by the National Coordinating Unit ( what is the role of IMFO)
26. Implementation LGTAS (3) LGTAS will have immediate and short-term focus, underpinned by a mid-to longer term focus
Immediate pre-2011 priorities
Get basics right for service delivery
Stabilise municipal councils
Deal with immediate financial, administrative & organisational problems
Mobilise and refocus all energies across government and social actors
Prepare for next term of LG and inspire public confidence in Candidates that are put up for elections
Lay the foundations for long term sustainability of LG
27. Implementation of LGTAS (4) Post 2011 priorities
Take note of the lessons of practice
Revise sector policies and legislation where necessary
Maintain the focus on responsive government
Build sustainable institutional reforms into the system
28. Organisational Structure of the LGTAS Teams
29. Implications/Expectations of the Municipal Financial Management Sector High political priority (extra-ordinary government-wide approach)
Involvement of national and provincial government in the LGTAS is seen as essential to its success
Given IMFO’s sector track record and engagement with Municipalities services high expectation that we have a lot to offer
Institutional arrangements of LGTAS based upon each sphere clearly articulating roles and responsibilities
Sector input process is being defined
Inputs from today will be fed back to COGTA through IGWG or TSU and sector input process
30. Facilitated Discussion: Sector Response What is needed to turn around the Finance services business?
What are the things we must do?
What are the things we must not do?
How does the sector position itself to maximise benefits of COGTA driven process?
LGTAS is firmly located in 5 objectives and outcome 9
Is this a workable approach?
Anything that needs to be added?
31. THE VERDICT LGSTAS
Municipal Amendment System Bill
Government POA- Economic Growth Trajectory linked (Job creation thorough EPWP SMMe LED projects
DHET Prioritise on Skills Development NSDSIII – the role of professional bodies in developing
Registration of professional bodies – a professional designations
Achieving Statutory recognition body.
This is a “Dawn of the New Era” are we geared for it ?
32. www.imfo.co.za IMFO is the recognised professional body
for the development and promotion of
Municipal Finance Officers and Local
81 Years old or young – still relevant
33. www.imfo.co.za IMFO MEMBERSHIP TYPES
The professional itself – Municipal Finance Officer
Previously regulated by national legislation – Registration as a municipal accountant
National Treasury requirement for competency levels
Requirements have been reviewed and aligned to the NT requirements
Officials from CGTA, SALGA, NT and various other related institutions
1772 Members and growing
Student Member- Studying towards Accounting /Public Finance Qualification at a registered FET / HET institution in RSA
34. www.imfo.co.za IMFO - STRENGTHS
Technical expertise of members
Communication instruments and links
Loyalty with regard to the grass root level
MOU’s with tertiary institutions and other professional bodies
35. www.imfo.co.za ACTIVITIES – LEGISLATIVE ISSUES
Comments on envisaged legislation including –
Municipal Fiscal Powers and Functions Act
Municipal Systems Amendment Act
Municipal Finance Management Act
Municipal Property Rates Act
Regulations and guidelines
Submission on various improvements towards legislation
Valuations and Rating Specialists
Corporate wide visions
Workshops with COGTA Delegations
36. www.imfo.co.za IMFO – BROARDER PARTICIPATION
ACCOUNTING STANDARDS BOARD.
Regular ASB workshops - exposure drafts
IMFO participates and influences standards
LGSETA & ABSA
Active participation in training and Skills development
MFMP/ CPMD(MF) training R16 Million -600 learners
Internal Audit project R 5 million
Phase 1 ABSA MFDP R1million rand
Assistance with legislative amendment and Technical input
Active MOU in place
Annual Financial Statement project in several Municipalities Funded
MPRA training and workshops and inputs on legislation.
Review of Local Government Legislation
37. IMFO’s INTERNATIONAL CONNECTIONS IMFO has strong ties with the Government Finance Officers Association of the United States and Canada and an IMFO delegation attends the GFOA conference and the GFOA sends a delegation to the IMFO Conference.
IMFO has a branch in Swaziland and members in Zimbabwe and Namibia. www.imfo.co.za
38. www.imfo.co.za IMFO – THE NEXT 81 YEARS
The future is in our hands
Let’s take hands and Deliver, Implement and Give
the best for all our residents
TOGETHER WE CAN
39. www.imfo.co.za THE INSTITUTE FOR
I THANK YOU