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Minimum Competency Regulations

Minimum Competency Regulations

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Minimum Competency Regulations

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  1. Minimum Competency Regulations MUNICIPAL FINANCE MANAGEMENT ACT No. 56 of 2003 TV Pillay MFMA Unit

  2. Background • 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

  3. Research278 Senior municipal managers - levels of qualifications

  4. Research278 Senior municipal managers - levels of qualifications by sector/type

  5. Background MFMA sections • S 83, 107 - Municipalities/ Entities accounting officer, senior managers, CFO and other financial officials must meet financial management competency levels • S 119 - Supply Chain Managementaccounting 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

  6. Regulations 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

  7. Regulations Differentiation / Categories: • Municipal capacity (High, Medium & Low) • Functions performed • Budget size: < R500 million: 250 municipalities > R500 million: 33 municipalities Must include the budget of municipal entities

  8. Regulations • 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

  9. Regulations 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

  10. Transitional 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 = matric NQF 5 = diploma NQF 6 = degree NQF 7 = honours & postgraduate

  11. Prescribed Unit Standards

  12. Prescribed Unit Standards (cont)

  13. Recognition 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 • Identify what the official knows and can do • Match the official’s skills, knowledge and experience to specific unit standards and strategic priorities • Assess the official against unit standards • Credit official according to assessment • These are activities carried out by an assessor (subject matter expert) accredited by SETA-ETQA

  14. Guidelines Competency GUIDELINES Accounting Officer Competency GUIDELINES Chief Financial Officer Competency REGULATIONS MFMA Competency GUIDELINES Senior Managers Competency GUIDELINES Finance Officials Middle Management Competency GUIDELINES Head SCM & SCM Senior Managers

  15. Chief Financial Officer MUNICIPAL FINANCE MANAGEMENT ACT No. 56 of 2003 Municipal Regulations on Minimum Competency levels

  16. Higher education qualification Chief Financial Officer

  17. Definitions 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)

  18. Chief Financial Officer Work related experience:

  19. Chief Financial Officer Competency areas: Unit Standards • Strategic leadership and management - 2 • Strategic financial management - 3 • Operational financial management - 6 • Governance, ethics & values in financial management-1 • Financial and performance reporting - 4 • Risk and change management - 1 • Project management - 1 • Legislation, policy and implementation -1 • Stakeholder relations - 1 • Supply Chain Management - 1 • Audit and Assurance - 1

  20. Chief 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”

  21. Chief Financial Officer Unit Standards include – Specific outcomes andassessment 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

  22. Chief 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

  23. Chief 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.”

  24. Chief Financial Officer Strategic 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

  25. Consultation • 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 M F M A

  26. Monitoring and Support MUNICIPAL FINANCE MANAGEMENT ACT No. 56 of 2003 Municipal Regulations on Minimum Competency levels

  27. Monitoring & 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

  28. Monitoring & Reporting Report to show the number of financial & SCM officials: • employed • that have undergone assessment • who’s performance agreements include competency attainment • that meet the competency levels

  29. Commencement Effective date: 1 July 2007 Fully operational: 1 January 2013 Phase-in 5 ½ years implementation

  30. Guiding Implementation Steps for MM • Establish steering committee, reporting to the Municipal Manager • Staff competency assessment to identify gaps (assessor to be LGSETA accredited) • Prepare training strategy and budget up to 1/1/2013 • Staff to undertake SAQA recognised training to address identified gaps • Performance agreements must incorporate attainment of competencies • Recruitment procedures to include new competency requirements

  31. National 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)

  32. Training Providers • SAQA 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/mfmaunder “Training & Validation”

  33. Thank You Website: www.treasury.gov.za/mfmaEmail: mfma@treasury.gov.za MUNICIPAL FINANCE MANAGEMENT ACT No. 56 of 2003 Municipal Regulations on Minimum Competency levels