Further Education and Training Certificate: Municipal Finance and Administration

The purpose of the FETC Municipal Finance and Administration Qualification at Level 4 is to provide a structured programme for municipal officials that work with senior management officials so as to provide support to strategic leadership and management needed to transform all spheres of government. The need for well-qualified efficient, client-oriented public officials is therefore identified as a priority in all the three spheres of government. The FETC: Municipal Finance and Administration is aimed at practitioners working in or wishing to work in the Municipal sector. It is a Qualification in a career pathway towards an accomplished municipal financial management specialist.

The FETC in Municipal Finance and Administration, consists of exit level learning outcomes, covering municipal accounting, administration, budgeting, computing, quantitative calculations, human resource management and legislative framework for the public sector. The competencies covered in the proposed unit standards encapsulate the competencies required by public officials working at the operational level (technical support staff in municipalities).

The Qualification will therefore enhance the ability of the qualifying learner as a municipal finance official to perform the necessary financial administration tasks. In this way, the Qualification enhances transferability of skills within different spheres of the public sector. At the same time, a learner will gain a firm foundation required for studies leading to Qualifications registered at NQF levels 5 (diploma), 6 and 7. All these enhance transferability of skills between the private and public sector.

With regard to the implementation of municipal financial management reforms, the Qualification serves, as a basis of an effective implementation process by defining and identifying those competencies required by technical public officials. The possession of relevant knowledge, skills and attitude by technical municipal officials is crucial to the implementation of municipal financial management reforms.

Qualifying learners could follow a career within the Public Sector:

• Financial Services.
• Administration.
• Management.
• Accounting.
• Project/Public Entity Management.Rationale:

  Municipal officials in South Africa operate in diverse operating and service delivery circumstances. They have to be widely acknowledged for their understanding and awareness of the unique characteristics and challenges they may face in the process of service delivery.

  It is imperative that municipal officials receive up to date relevant and respected municipal financial administration training that recognises that the knowledge and skills, which South Africa’s local government sphere require, has been satisfactorily obtained. In order to do that most effectively, municipal officials need to have excellent awareness and understanding of the changing needs of today’s municipal service delivery systems and to identify very clearly the highly relevant expertise which these officials bring to their roles in the public sector.

  The exit level outcomes highlight many of the municipal financial management skills required within local government sector. Such skills and knowledge are geared towards enabling municipal officials to operate effectively and successfully in a demanding environment that calls for the adopting of strong Batho Pele principles, working closely with the community whilst fulfilling the needs of the public sector. Therefore, exit level outcomes and related assessment criteria are outlined for the areas of competence, which mark out municipal financial management as key and highly influential in the municipal service delivery.

  It is understandable that most municipal officials will occupy specialised positions that do not require all of the contributions outlined in this Qualification. In that sense, some of the exit level outcomes are shown as electives that address specialised knowledge and skills.

  The FETC in Municipal Finance and Administration is a specialised Qualification that offers administrative and financial knowledge and skills to learners who:

• Have attained a National Certificate in Business Administration: Level 3 or any related financial, accounting, or public administration Qualification or equivalent and wish to continue on a path of life-long learning within the Public Finance Management and Administration or other related Qualifications.
• Have worked in Public Administration, Accounting, Public Financial Management, Municipal Financial Administration/Management for many years, but have no formal Qualifications in their area of expertise.
• Wish to extend their range of skills and knowledge Municipal Financial Management so that they can become knowledge workers.
• Are contracted in a learnership agreement.
• Have recently taken up a position in Public Finance Management and Administration.
• Have not yet acquired the skills and competencies required for learning in the Diploma in Public Financial Management and Administration at NQF level 4.The skills, knowledge, values and attitudes reflected in the Qualification are building blocks that will be developed further in a related Diploma at NQF Level 5. The intention is:
• To promote the development of knowledge and skills that are required for the efficient performance of technical Municipal Financial Management functions.
• To release the potential of people.The FETC in Municipal Finance and Administration: NQF Level 4 should produce knowledgeable, multi-skilled workers who are able to contribute to improved productivity and efficiency within the local government sphere sector. It should provide the means for current workers to receive recognition of prior learning, to upgrade their skills and achieve a nationally recognised Qualification. It should also assist new entrants to the public sector.

  It will ensure that the quality of education and training in the public sector is enhanced and of a world-class standard.

  The Qualification will allow both those in formal education and those already employed in organisations in the Municipal Financial Administration field of learning in the local government sphere accesses to a Qualification that can be used as a benchmark to gauge their competence against local and international standards.

Recognition of prior learning:

The structure of this Unit Standard based Qualification makes the Recognition of Prior Learning possible. Learner and Assessor will jointly decide on methods to determine prior learning and competence in the knowledge, skills, values and attitudes implicit in the Qualification and the associated Unit Standards. Recognition of Prior Learning will be done by means of an Integrated Assessment.

This Recognition of Prior Learning may allow for:

• Accelerated access to further learning at this or higher levels on the NQF.
• Gaining of credits towards a Unit Standard in this Qualification.
• Obtaining this Qualification in whole or in part.All recognition of Prior Learning is subject to quality assurance by the relevant ETQA or an ETQA that has a Memorandum of Understanding with the relevant ETQA.

  Access to the qualification:

  Access to this Qualification is open, bearing in mind the Learning Assumed to be in Place. It is preferable, however, for the learner to first have completed:35928: “National Certificate: Business Administration Services”, NQF Level 4 or 48640: “National Certificate: Financial Services Management”, NQF Level 4 or 21172: “National Certificate: Accounting”, NQF Level 4, or the equivalent experience, before accessing this Qualification so that the learner has a broad understanding of the basic principles of Financial Management before proceeding with the more specialised requirements of Municipal Financial Management. The learner must also have a Grade 12 (Matric) or Grade 11 with two years experience in the financial sector before proceeding with this Qualification.

To be awarded the Qualification, learners are required to obtain a minimum of 157 credits as detailed below.

Fundamental Component:

The Fundamental Component consists of Unit Standards in:

• Mathematical Literacy at NQF Level 4 to the value of 16 credits.
• Communication at NQF Level 4 in a First South African Language to the value of 20 credits.
• Communication in a Second South African Language at NQF Level 3 to the value of 20 credits.It is compulsory therefore for learners to do Communication in two different South African languages, one at NQF Level 4 and the other at NQF Level 3.

  All Unit Standards in the Fundamental Component are compulsory.

  Core Component:

• The Core Component consists of Unit Standards to the value of 83 credits all of which are compulsory.Elective Component:
• The Elective Component consists of Unit Standards to the value of 103 credits. Learners are to choose Unit Standards to the minimum of 18 credits. With the approval of the relevant ETQA, learners may choose any registered Unit Standard which contributes to the improvement of their work performance or in which they have a particular interest.

1. Discuss and implement selected legislative and regulatory guidelines governing the public sector management and administration environment.

2. Apply accounting principles and procedures for municipal resource management.

3. Conduct revenue and cost analysis in the context of multi-year revenue and expenditure management in municipalities.

4. Explain and apply management information systems in a municipal environment.

5. Manage self and projects in a municipal environment.

6. Design and apply administrative principles, procedures and systems in municipal office administration.

Critical Cross-Field Outcomes:

This Qualification deals with the Critical Cross-Field Outcomes, as indicated in each of the associated Unit Standards contained in the Qualification.

1:

• The Public Finance Management Act and Municipal Finance Management Act are explained and applied appropriately to different financial problems within a municipality.
• The regulations governing Division of Revenue among different spheres of government are applied to simulated and real financial situation.
• The fundamental aspects of the organisation and operation of South Africa’s legal system are identified and explained with examples.
• Essential elements required to establish and discharge valid contracts are identified and explained according to the appropriate public sector environment with examples.
• Human recourses legislation is explained and applied in a municipal environment according to labour legislation requirements.
• Employee health, safety and security administration is implemented in the workplace.2:
• The various elements of a municipal accounting system and accounting information system are described and applied in own work context.
• The principles of budgeting for the preparation of municipal budgets are applied and integrated into own work context.
• A municipal budgeting and financial reporting cycle is explained with examples.
• Accrual accounting procedures are applied to account for accruals and prepayments.3:
• A cost-volume-profit analysis is conducted in the management of municipal revenue and costs.
• How costs and revenue behave in different operations of a municipality is explained with practical examples.
• A schedule of relevant costs and revenue to support a decision making process is compiled in own work context.
• Revenue variances are determined for different sources of municipal revenue.4:
• A management information system and how it impacts on a municipality is explained with examples.
• Features and opportunities of commonly used IT systems are explained with examples.
• The value and cost of information is described and evaluated with practical workplace examples.
• The importance of a management information system in the management of municipal finances and administration is described with examples.
• A management information system is implemented according to municipality requirements and the context of the specific workplace.5:
• Self-development principles practiced according to own and organisational requirements.
• Municipal financial projects are planned, executed, controlled and closed according to the project plan and scope.
• Management principles are applied to self, team members and projects using accepted management techniques to enhance deliverables.6:
• The administrative systems within a municipality are explained with examples.
• Administrative information is maintained at the required level of confidentiality in own work context.
• The principles of information systems are integrated into administrative and record keeping functions.
• Municipal administrative procedures and principles are utilised to manage records within a municipal information system.Integrated assessment:

  Because assessment practices must be open, transparent, fair, valid, and reliable and ensure that no learner is disadvantaged in any way whatsoever, an integrated assessment approach is incorporated into the Qualification.

  Learning, teaching and assessment are inextricably lined. Whenever possible, the assessment of knowledge, skills, attitudes and values shown in the unit standards should be integrated.

  Assessment of the communication, language, literacy and numeracy should be conducted in conjunction with other aspects and should use authentic municipal financial management contexts wherever possible.

  A variety of methods must be used in assessment and tools and activities must be appropriate to the context in which the learner is working. Where it is not possible to assess the learner in the workplace or on-the-job, simulations, case studies, role-plays and other similar techniques should be used to provide a context appropriate to the assessment.

  The term ‘Integrated Assessment’ implies that theoretical and practical components should be assessed together. During integrated assessments the assessor should make use of formative and summative assessment methods and assess combinations of practical, applied, foundational and reflective competencies.

  Assessors and moderators should make use of a range of formative and summative assessment methods. Assessors should assess and give credit for the evidence of learning that has already been acquired through formal, informal and non-formal learning and work experience.

  Assessment should ensure that all specific outcomes, embedded knowledge and critical cross-field outcomes are evaluated. The assessment of the critical cross-field outcomes should be integrated with the assessment of specific outcomes and embedded knowledge.

• Australia.
• Kenya.
• The United Kingdom and Ireland.
• Tanzania and Uganda.
• Namibia.
• Australia:Australia, a Chief Financial Officer (CFO) in any level of government is expected either to be a Chartered or Certified Practicing Accountant. The Qualification of a Chartered or Certified Practicing Accountant requires a minimum of a three-year degree, articles served over a three-year period and a further training course designed by the relevant professional body. Those who desire to move from a specialist senior management position to general management usually use their credits towards an MBA Qualification and concentrate on study units relating to general and strategic management and industry specific units. The National Certificate: Municipal Finance Management and Administration Qualification is a technical Qualification at a level lower than that of CPA.
• Kenya:Kenya Accountants and Secretaries National Examination Board (KASNEB) is an examination body which registers learners and sets administers and manages accounting, finance, administration and management examinations both at professional and technician levels. The examinations of the Board are recognised worldwide and are comparable to similar professional examinations (ACCA and CIS) in the world.

  The Board administers the following four major examinations:

  > The Certified Public Accountants (CPA) examination for those learners who wish to qualify and work as professional accountants, auditors, finance managers, tax and financial consultants. The CPA Qualification has two elective subjects on government finance and government Accounting. The learning outcomes underlying this Qualification are equivalent to SAQA’s NQF Level 7 outcomes.

  > The Certified Public Secretaries (CPS) examination for those learners who wish to qualify and work as corporate secretaries, company secretaries, town clerks, secretary managers, consultants and managers in industry and commerce; administrators and human resources advisers in public and private institutions. The CPS Qualification has two elective subjects on government finance and government Accounting. The learning outcomes underlying this Qualification are equivalent to SA’s NQF Level 6 broad outcomes. This is the highest Qualification that must be held by candidates seeking to fill Municipal Managers (Town Clerk) and Treasurers positions in Kenya’s local government.

  > The Kenya Accounting Technicians Certificate (KATC) examination for those learners who wish to obtain a Qualification as specialised middle-level accountants, who are also known as accounting technicians. The learning outcomes of this Qualification closely match those attributable to accounting technicians` Qualifications registered at an NQF Level 5 in South Africa.

  The Kenya Administration and Management Examination (KAME) is for those learners who wish to obtain a Qualification as supervisors, administrative officials, section heads and first level managers and administrators in the public and private sectors.

  Middle managers in administration in the Kenyan government or local governments are expected to hold either the KATC or KAME Qualifications.

• The United Kingdom and Ireland:The United Kingdom and Ireland, Financial Managers in Public Administration are expected to be members of the Chartered Institute of Public Finance and Accountancy (CIPFA) and to comply with their requirements. CIPFA promotes public sector finance management interest through its professional Qualification and continuing professional development scheme; and through its regulatory role comprising the setting of professional standards and the maintenance of a professional disciplinary scheme for members. The National Certificate in Municipal Finance Management and Administration form a good basis for learners who wish to qualify as CIPFA members. The National Certificate Municipal Finance Management and Administration should be seen a reasonable bridging programmes to three-year higher education programmes offered by Universities in the UK.
• Tanzania and Uganda:Faculties of economics and management sciences at universities tend to offer subjects whose technical and academic content is closely aligned to the examinations administered by KASNEB. It follows that there is insignificant coverage of public sector finance and accounting issues given that they tend to receive a peripheral treatment in the CPS/CPA examinations administered by KASNEB. The training situation is not materially different from that prevailing in Tanzania and Uganda given that the two countries have tended to adopt a similar approach to training of management, accounting and finance professionals.
• Namibia:The University of Namibia has a certificate programme in Taxation and Public Finance, which was designed in 2000 to equip those high school graduates with experience in technical accounting issues in the central and local government.

  On the basis of the scope of subjects and related learning outcomes addressed, this certificate programme can only be equated to certificates in finance registered at an NQF Level 5. This Qualification provides a foundation to first degrees in accounting, administration and finance at the same university. The holders of this Qualification require a further advanced degree in order to hold the positions of CEO’s or CFO’s at government organisations.

  This National Certificate in Municipal Finance Management and Administration NQF Level 4 contains the skills and knowledge required for the South African situation. This Qualification presents the learner with the necessary knowledge and skills required to carryout public financial management and administration functions in South Africa. The competencies related to the administration, accounting and finance function are specifically dealt with in this Qualification.

• 49129: “Further Education and Training Certificate: Management and Administration”, NQF Level 4.
• 48960: “Further Education and Training Certificate: Social Security Administration”, NQF Level 4.
• 35928: “National Certificate: Business Administration Services”, NQF Level 4.
• 23235: “National Certificate: Business Studies: Administration: FET Phase”, NQF Level 4.
• 35927: “National Certificate: Payroll Administration Services”, NQF Level 4.Vertical articulation is possible with the following Qualifications:
• 49554: “National Diploma: Public Finance Management and Administration”, NQF Level 5.
• 49126: “National Certificate: Management and Administration”, NQF Level 5.
• 50060: “National Certificate: Public Administration”, NQF Level 5.
• 35926: “National Diploma: Payroll Administration Services”, NQF Level 5.

• Anyone assessing a learner or moderating the assessment of a learner against this Qualification must be registered as an assessor with the relevant Education, Training, Quality, Assurance (ETQA) Body, or with an ETQA that has a Memorandum of Understanding with the relevant ETQA.
• Any institution offering learning that will enable the achievement of this Qualification must be accredited as a provider with the relevant Education, Training, Quality, Assurance (ETQA) Body, or with an ETQA that has a Memorandum of Understanding with the Financial Services (FASSET) ETQA.
• Assessment and moderation of assessment will be overseen by the relevant Education, Training, Quality, Assurance (ETQA) Body, or by an ETQA that has a Memorandum of Understanding with the FASSET ETQA, according to the ETQA’s policies and guidelines for assessment and moderation.
• Moderation must include both internal and external moderation of assessments at exit points of the Qualification, unless ETQA policies specify otherwise. Moderation should also encompass achievement of the competence described both in individual Unit Standards as well as the integrated competence described in the Qualification.Anyone wishing to be assessed against this Qualification may apply to be assessed by any assessment agency, assessor or provider institution that is accredited by the relevant ETQA.

• A minimum of 2 (two) years’ practical, relevant occupational experience in Administration.
• To be declared competent in all the outcomes of the National Assessor Unit Standards as stipulated by South African Qualifications Authority (SAQA).
• To be in possession of a Qualification in Debt Recovery or Credit Management at an NQF Level 5 or higher.