1 July 2007

Guideline for Municipal Competency

Levels:
Finance Officials at
Middle Management Level

Municipal Regulations on Minimum Competency Levels

issued in terms of the
Local Government: Municipal Finance Management Act,
2003
Introduction

This guideline is one of a series to explain the Local Government Municipal Finance
Management Act, 2003: Municipal Regulations on Minimum Competency Levels for
accounting officers, senior managers, finance officials, and other officials responsible for
supply chain management of municipalities and municipal entities. Sections 83, 107 and 119
of the MFMA require officials to meet prescribed competency levels in financial and supply
chain management and should be read with the Municipal Regulations on Minimum
Competency Levels. This guide also complements the performance management
regulations issued under the Municipal Systems Act by the Department of Provincial and
Local Government.

Finance official at middle management level

In relation to a municipality or municipal entity, means an official of a municipality or

municipal entity exercising financial management responsibilities that is in a middle
management position responsible for supervising staff. This includes an official directly
accountable to a manager in the senior management level. The regulation defines “middle
management level” and “senior management level”.

Minimum competencies: Finance officials at middle management level

Competencies required of every finance official in a municipality or municipal entity must be

understood within the broader context of the MFMA. Specific duties and responsibilities are
assigned to officials exercising financial management responsibilities in chapter 8 (Part 2) of
the MFMA in the case of a municipality, and chapter 10 (Part 5) of the MFMA in the case of
a municipal entity.

The Regulations require a finance official at middle management level to meet minimum
competency requirements in the three categories below and each is discussed further in this
guideline:

• Proficiency in the competency areas, as prescribed in the Regulations and described in

these guidelines (see table)
• Higher education qualification
• Work related experience

The three categories are further divided into two streams according to the municipal capacity
(High, Medium and Low as prescribed) and budget size. Finance officials employed by all
low capacity municipalities, medium capacity municipalities with an annual budget below
R500 million, and municipal entities with an annual budget below R500 million have less
stringent competency criteria to apply than the remaining municipalities and municipal
entities with higher capacity and budgets.

Please note that municipal capacity was prescribed for the implementation of the MFMA and
published in government gazette No 26511 on 1 July 2004.

Financial and supply chain management competencies

Generally speaking, the financial and supply chain management skills required of officials
are categorised into 11 competency areas, they are:

1. Strategic leadership and management

2. Strategic financial management
3. Operational financial management

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4. Governance, ethics and values in financial management
5. Financial and performance reporting
6. Risk and change management
7. Project management
8. Legislation, policy and implementation
9. Stakeholder relations
10. Supply chain management
11. Audit and assurance

The table contained within this guideline provides a comprehensive guide to the knowledge
and skills required of a finance official to effectively implement the MFMA, in each of the 11
competency areas. The knowledge and skills are drawn directly from the MFMA and the
roles and responsibilities assigned or delegated to the official. The table has been used to
identify relevant Unit Standards on which the Regulations are based.

The Regulations prescribe Unit Standards (US ID) that match the skills and knowledge
required in respect of each competency area. In some cases the Unit Standard prescribed
does not fully address the range of skills required for a particular competency area or a Unit
Standard was not required. Hence there may be some competency levels without a standard
shown, for example the finance official has no strategic leadership Unit Standards
prescribed. The table however, provides comprehensive guidance on the required skills and
knowledge and in time Unit Standards will be developed or expanded to address any gaps. It
is important therefore, to read both the Regulations and these guidelines together to ensure
officials are appropriately skilled for their positions.

Unit Standards referred to in the Regulations are registered by the South African
Qualifications Authority (SAQA) and form part of the following higher education
qualifications:

• The Certificate in Municipal Financial Management (Qualification ID No. 48965)

• National Diploma: Public Finance Management and Administration (Qualification ID No.
49554)

The Unit Standards specify minimum training outcomes and provide guidance on the specific
abilities that the official must demonstrate.

Higher education qualifications

A finance official at middle management level must have or attain by 1 January 2013 a
higher education qualification, which is identical for all municipalities and municipal entities,
as follows:

Qualification Municipal capacity and budget

• All Low capacity municipalities
At least NQF level 5, or
• Medium capacity municipalities with annual budgets
National Diploma: Public Finance
of a value below R500 million for the current year
Management and Administration (SAQA
qualification ID No. 49554) • Municipal entities with annual budgets of a value
below R500 million for the current year
• All High capacity municipalities
At least NQF level 5, or • Medium capacity municipalities with annual budgets
National Diploma: Public Finance of a value equal to or above R500 million for the
Management and Administration (SAQA current year
qualification ID No. 49554) • Municipal entities with annual budgets of a value
equal to or above R500 million for the current year

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Foreign qualifications obtained outside the Republic of South Africa and qualifications that
have not been accredited by the South African Qualifications Authority (SAQA) held by
existing officials and applicants for new positions must be submitted to SAQA for evaluation.

“NQF” refers to the National Qualifications Framework prescribed by regulations issued in

terms of the South African Qualifications Authority Act, 1995 (Act 58 of 1995).

The following table provides examples of qualifications within the various NQF levels and
should be used as a guide only. The criteria for determining the NQF level of qualifications is
available on the SAQA website (see below for contact details).

NQF Bands Examples of Qualifications

8 Higher education and training Doctorates and research masters

7 Higher education and training Higher degree: Honours, postgraduate certificate & diploma

6 Higher education and training First three-year degrees & higher diplomas

5 Higher education and training Two year diplomas and occupational certificates

4 Further education and training High School/College/NGO certificates/Grade 12

3 Further education and training School/College/NGO certificates

2 Further education and training School/College/NGO certificates

1 General education and training Grades 4-9, ABET 1-4

Work related experience

Officials must be able to demonstrate previous work related experience relevant to the
position. This must include a minimum period at middle management level with the balance
at any level in a role related to the position of the official, and will vary according to the
municipality’s capacity and/or budget size. Regulation 1 contains a definition of middle
management level.

Work related experience Municipal capacity and budget

Minimum of: • All Low capacity municipalities

(a) 4 years of which at least 1 year must be at • Medium capacity municipalities with annual
middle management level and at least 3 years at budgets of a value below R500 million for the
any level in a role related to the position of the current year
official; or • Municipal entities with annual budgets of a
(b) 6 years at any level in a role related to the value below R500 million for the current year
position of the official
• All High capacity municipalities
Minimum of: • Medium capacity municipalities with annual
(a) 5 years of which at least 2 years must be at
budgets of a value equal to or above R500
middle management level and at least 3 years at
million for the current year
any level in a role related to the position of the
• Municipal entities with annual budgets of a
official; or
value equal to or above R500 million for the
(b) 7 years at any level in a role related to the
current year
position of the official

Where an official claims previous work related experience outside the local government
sphere, the municipality or municipal entity will need to evaluate past work experience to

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ensure it is indeed substantially similar to the local government sphere. Experience should
be verified by contacting past employers, obtaining copies of job descriptions and viewing
examples of past work where appropriate.

Implementation of the Regulations

When the regulations become effective, there will be existing finance officials in
municipalities and municipal entities that do not meet the prescribed competencies. The
municipality or municipal entity must ensure that the competencies of existing officials are
assessed promptly in order to identify and address gaps. Where an existing official does not
meet the prescribed higher education qualification and/ or required minimum competency
level in the required unit standards, he/ she should enrol for appropriate SAQA recognised
qualifications and address all other gaps on or before 1 January 2013.

The municipality and municipal entity may only recruit new finance officials that meet the
prescribed competencies, higher education and prior experience requirements. During the
implementation period however, new officials that do not meet the prescribed competency
levels may be recruited provided the official’s continued employment is subject to a condition
that the official attains the requirements no later than 1 January 2013. This will require the
official to attain the higher education qualification and the required minimum competency
level in the required Unit Standards for each competency area on or before 1 January 2013.
After 1 January 2013 no person may be employed that does not meet the requirements of
the Regulations.

Performance agreements

The attainment of prescribed competencies and qualifications should be incorporated into

the job description and evaluation criteria as reflected in the annual performance agreement
of existing and any new financial official of a municipality or municipal entity. When doing so
it is important to consider the following:

• The development plan and learning pathway of the finance official should be reflected in
his or her annual performance agreement to ensure that existing competency gaps are
met within the prescribed timeframes;

• New candidates applying for the position of a financial official must have their
competencies assessed in accordance with the Regulations prior to their appointment.
Any advert to invite applications for this position should make reference to the required
competencies for this position.

Assessment of competency levels

All assessments of competencies must be undertaken by assessors accredited by the Local

Government Sector Education Training Authority (LGSETA) in terms of SAQA guidelines
and NQF-registered Unit Standards and criteria.

SAQA provides guidelines for the assessment of NQF-registered Standards and criteria for
the registration of assessors. Officials in possession of qualifications obtained outside the
Republic of South Africa will have to submit their qualifications to SAQA for evaluation.

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 LGSETA can be contacted as follows SAQA can be contacted as follows:

Website www.lgseta.co.za Website www.saqa.org.za

SAQA Postnet 248
Box 1964
Postal address Postal address Private bag X06
Bedfordview 2008
Waterkloof, Pretoria 0145
4/6 Corporate Park
Physical Building, 4th floor Physical 1067 Acadia St
address Skeen Boulevard address Hatfield 0083
Bedfordview 2007
012 431 5000 (reception)
Telephone 011 456 8574 (reception) Telephone
012 431 5147 (fax)
numbers 011 450 4948 (fax) numbers
086 010 3188 (help desk)

Monitoring and reporting competency levels

The accounting officer is responsible to monitor and take all necessary steps to ensure
compliance with the Regulations, including regular reporting.

Each municipality is required to furnish half yearly implementation returns to the National
Treasury and relevant provincial treasury for the period ending 31 December and 30 June.
The return is to be in the format of the Schedule of the Regulations and, where applicable,
include consolidated information on all its municipal entities. The consolidated returns are to
be furnished by no later than 30 January and 30 July respectively. The annual report of the
municipality must reflect the information as at the end of the financial year to which it relates.

Municipal entities must submit the return in the Schedule of the Regulations to its parent
municipality (by no later than 20 January and 20 July) in order for the parent to consolidate
the information and meet its reporting obligations. The annual report of the municipal entity
must reflect the information as at the end of the financial year which it relates.

Use of the table

General: The following table provides guidance on the implementation of the Municipal
Regulations on Minimum Competency Levels and will assist with the interpretation of the
financial and supply chain management skill levels and areas of competency of the specific
position. The table must be read in conjunction with the Regulations.

Municipal Entities: In applying the following table, unless indicated otherwise, a reference
to a municipality, a municipal council, a mayor (or executive mayoral committee) or an
accounting officer (the municipal manager) must be read as referring to a municipal entity,
the board or directors of a municipal entity, the chairperson of the Board of Directors of a
municipal entity or the accounting officer (chief executive officer) of a municipal entity,
respectively.

In applying the following table, unless indicated otherwise, a reference to a municipality’s

integrated development plan (IDP) must be read as referring to a municipal entity’s strategic
plan or strategic business plan and a reference to a municipality’s service delivery and
budget implementation plan (SDBIP) must be read as referring to a municipal entity’s service
delivery agreement (SDA) with the parent municipality.

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Table: Description of competency areas for Financial Officials in municipalities and entities
Competency area Competencies required Knowledge and Skills
1. Strategic leadership and Within the area of responsibility, the ability to Within the area of responsibility:
management contribute to service delivery systems of a • Motivating and empowering staff to deliver on municipal strategies and goals.
complex nature and to implement and ensure • Fostering a positive and creative management culture.
achievement of municipal strategies and
• Contributing to the alignment of municipal strategies and goals with national and
goals.
provincial policies and within the district.
• Contribute to and implement an effective performance management system.
• Utilising strategic planning methods and tools.

Within the area of responsibility the ability to • Implementing and contributing to the development and review of credible plans
implement and influence short, medium and including the integrated development plan (IDP) and service delivery and budget
long-term service delivery plans to deliver on implementation plan (SDBIP).
municipal strategies and goals. • Understanding the financial and non financial implications of plans and municipal
strategies and goals, including national and provincial policy statements and changes.
• Understanding the impact of financial and non-financial changes on plans.
• Implementing plans within the local government legal framework.
• Understanding that the past and current performance and financial position of the
municipality may impact municipal plans and strategies and goals.

The ability to support the chief financial officer • Supporting the chief financial officer/accounting officer and other senior managers.
and other senior managers. • Implementing and contributing to policy objectives
• Evaluating and reporting to the chief financial officer/accounting officer and other senior
managers on the alignment and achievement of municipal strategies and goals in
respect of activities, service delivery and performance within the area of responsibility.

Within the area of responsibility, the ability to • Supporting and maintaining strategic alliances within the cooperative governance
support and maintain strategic alliances with framework.
various stakeholders. • For the purpose of achieving the Constitutional mandate of the municipality, supporting
and maintaining strategic alliances with organisations and bodies outside government.
• Communicating the municipality’s mission and vision to various stakeholders

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 Competency area Competencies required Knowledge and skills
2. Strategic financial Within the area of responsibility, the ability to • Implementing finance strategies, which enhance good financial management and
management support an effective, economic and efficient decision-making practices within the area of responsibility.
finance function. • Implementing financial policies and systems to ensure efficient and effective financial
administration and control.
• Implementing and maintaining financial management guidelines, financial instructions,
credit control procedures, debt collection and related financial policies.
• Within the area of responsibility, managing the control of assets according to policies
and procedures.
• Implement best practice management accounting techniques within the area of
responsibility.
• Supporting the chief financial officer/accounting officer with regard to financial
management, including taxation implications, of municipal entities and other service
delivery mechanisms (both internal and external).
• Supporting the chief financial officer and accounting officer to oversee the financial
management, tax implications and performance of service delivery mechanisms
(internal and external (including municipal entities in the case of a municipality)) and
outsourced service agreements within the area of responsibility.

The ability to support the chief financial officer • Contributing to the preparation of multi-year revenue and expenditure forecasts.
and other senior managers with the • Contributing to the development of sustainable strategies to address revenue shortfalls
forecasting of revenue and expenditure. in alignment with strategic plans.

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 Competency area Competencies required Knowledge and skills
3. Operational financial Within the area of responsibility, the ability to • For purposes of the area of responsibility contributing to specifications of appropriate
management implement financial systems. and accurate financial operating systems.
• Generating and analysing regular reports, within the area of responsibility, relating to
the measurement and monitoring of financial information and performance, including
the implementation of the budget and service delivery and budget implementation plan
(SDBIP).
• Implement adequate control of financial operating systems within the area of
responsibility.
• Supporting the chief financial officer/accounting officer, and through the financial
operating systems, to analyse and report on the financial position, borrowing and
performance of the municipality and how that impacts on the implementation of the
annual budget and on the service delivery and budget implementation plan (SDBIP).
• Contribute to the review of the efficiency and effectiveness of financial operating
systems to align with changing needs within the area of responsibility.
• In conjunction with the chief financial officer/accounting officer, assist with the
determination of requirements for in-house or outsourced or shared service agreements
for the operation of financial systems.

The ability to understand the importance of • Within the area of responsibility, monitoring and advising the chief financial
maintaining sufficient working capital (cash officer/accounting officer of changes that may affect the working capital, including
flow/short-term liquidity) to meet the legislation, inflation and resource allocations.
requirements of the area of responsibility • Within the area of responsibility contributing to the prioritisation of working capital to
align with strategies and goals. .
• Support the chief financial officer/accounting officer in monitoring and reporting on
working capital, including how that affects investment options, revenue and debt
collection
• Support the chief financial officer/accounting officer in monitoring and reporting, through
analysis, the implications of borrowing and the significance thereof to service delivery
programmes and possible influences on the financial markets
• Support the chief financial officer/accounting officer in applying ‘best practice’ risk
management practices to the management of working capital.

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 The ability to contribute to the budget • In the case of a municipality:
preparation and implementation process and • Advising the chief financial officer/accounting officer on the time schedule outlining
provide technical expertise in this regard. key deadlines for the preparation, tabling and approval of the annual budget and
the annual review of the IDP, budget related policies and related consultative
processes.
• Support the chief financial officer/accounting officer to ensure that the budget
process aligns the budget and related budget policies to the integrated
development plan (IDP) and service delivery and budget implementation plan
(SDBIP) of the municipality
• In the case of a municipal entity:
• Advising and supporting the chief financial officer/accounting officer on the budget
process and annual review of related policies and related consultative processes
with the parent municipality. This includes the alignment of the entity’s budget with
its strategic plan and the service delivery agreement (SDA) and the integrated
development plan (IDP) of its parent municipality.
• Supporting the chief financial officer/accounting officer to ensure the proposed
budget is submitted to the parent municipality and that any recommendations of the
council of the parent municipality are considered by the board of directors prior to
approval of the budget.
• Within the area or responsibility, providing technical inputs with the preparation, adoption
and implementation of the budget and providing support to the chief financial officer
/accounting officer throughout the budget process.
• Within the area of responsibility, implementing and contributing to the implementation of the
budget
• Ensuring compliance to the legislative framework governing municipal budget and formats.
• Knowledge of financial planning, taxation, budgeting and forecasting and the interrelation
thereof.

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 Competency area Competencies required Knowledge and skills
4. Governance, ethics & The ability to support and implement good • Within the area of responsibility, understanding the roles and responsibilities,
values in financial governance in the area of responsibility. separation of powers and regular reporting lines for all role players to ensure
management transparency and accountability.
• Knowledge and understanding of governance and ethics in financial management.
• Supporting the chief financial officer/accounting officer to generate the sharing of
knowledge and learning to enhance the collective knowledge, capacity and skills of
officials and councillors or directors.
• Support and implement the codes of conduct for all role players within the area of
responsibility.
• Support the implementation of systems to encourage and enforce good governance,
ethics and the codes of conduct. These systems could include mechanisms to report
misconduct, fraud, corruption, favouritism and non-compliance with legislation and
disclosure of conflicts of interest, inducements, rewards, gifts, hospitality and favours.
Ensuring cases that may constitute a criminal offence are reported to the accounting
officer and the South African Police Service.
• Within the area of responsibility, ensuring that codes of conduct, roles and
responsibilities and reporting lines are clearly communicated, understood and observed
by all role players.
• Leading by example and promoting high standards of ethical behaviour by acting with
fidelity, honesty, integrity and in the best interests of the municipality and maintaining
the confidentiality of information.

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 Competency area Competencies required Knowledge and skills
5. Financial and performance The ability to implement the financial reporting • Knowledge and understanding of the legislative framework governing financial reporting
reporting process of the municipality. in local government.
• Support and contribute to the timely preparation, submission and publication of
statutory reports, including the annual financial statements, annual report and in-year
reports (e.g. in the case of a municipality reporting monthly (section 71), mid-year
reporting (section 72)) withdrawals from bank accounts (section 11(4)) etc)
• Within the area of responsibility, ensuring that the content of financial reporting is
specific (unambiguous), measurable, accurate and valid, reliable and time specific.
• Support the chief financial officer/accounting officer to analyse and evaluate the
financial reports to understand the impact on planning in respect of, strategies and
goals including the financial position, borrowings, performance, implementation of the
annual budget and service delivery and budget implementation plan (SDBIP), tariff-,
rates-, credit control, debt collection-, supply chain management-, and other relevant
policies.
• Within the area of responsibility to generate, analyse and evaluate cost-management
reports for all programmes and/or projects to review performance.

The ability to implement the performance • Knowledge and understanding of the local government legislative framework governing
reporting process of the municipality. performance reporting.
• Within the area of responsibility implementing and maintaining a performance
management system. In the case of a municipal entity also regularly monitoring,
measuring, reviewing and reporting its performance to its parent municipality.
• Within the area of responsibility timely preparation, submission and publication of
statutory reports relating to performance. For example the annual performance report
(section 121(3) of the MFMA), mid year performance reporting (section 72 of the
MFMA) of a municipality and in the case of a municipal entity, an assessment of the
entity’s performance (section 121(4) of the MFMA), mid year performance reporting
(section 88 of the MFMA)
• .
• Within the area of responsibility, ensure that the content of performance reporting is
specific (unambiguous), measurable, accurate and valid, reliable and time specific.
• Within the area of responsibility support the chief financial officer/accounting officer to
analyse and evaluate the performance reports to understand the impact on, and to
guide planning in respect of, strategies and goals including the implementation of the
budget and service delivery and budget implementation plan (SDBIP) and policies.
• Within the area of responsibility support the chief financial officer/accounting officer to
analyse and evaluate the performance of:
1. service delivery mechanisms (internal and external) and outsourced service
agreements against performance targets, and
2. in the case of a municipality, of each of its municipal entities against the
service level agreement and performance targets for that entity,

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 • Within the area of responsibility and where relevant, ensuring that there is a link
between the performance indicators and targets and the integrated development plan
(IDP), service delivery and budget implementation plan (SDBIP) and the individual
performance agreements of officials.
• Within the area of responsibility and where relevant, ensuring that the remuneration and
appraisal system is performance based and that all performance bonuses are only
awarded after consideration of actual performance of the municipality against the
performance targets for a specific period.
• Support the chief financial officer/accounting officer with the regular benchmarking of
the performance of the area of responsibility against the performance of functions of
similar and/or comparable municipalities to improve and guide in the planning and
delivery of services.

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 Competency area Competencies required Knowledge and skills
6. Risk and change The ability to understand risk and implement • Contributing to and supporting the chief financial officer/accounting officer with the
management risk management within the area of implementation and maintenance of effective, efficient and transparent systems of
responsibility. financial and risk management and internal control.
• Implementing the risk management- and fraud prevention plan within the area of
responsibility
• Contributing to and supporting the chief financial officer/accounting officer with regular
risk assessments within the area of responsibility and the prioritisation of risk according
to highest versus lowest potential risk
• Mitigating risks within the area of responsibility in accordance with the prioritisation of
risk
• Within the area of responsibility contributing to the management of risk (including the
possible transfer of risk) and consideration of potential risks relating to mechanisms for
service delivery (both internal and external), outsourced service agreements. In the
case of a municipality it must also consider its municipal entities and Public-and-Private
Partnerships (PPPs) and the transferring of funds to organisations and bodies outside
government

The ability to implement change management • Understanding the local government environment (including legislative, social, political
within the area of responsibility. and economic) and supporting the chief financial officer/accounting officer to analyse
the financial and non-financial impact of changes in the external and internal
environment that could affect the municipality/municipal entity and recognising when
this necessitates change
• Implementing change management within the area of responsibility
• The ability to contribute to creative and innovative solutions to change
• Contributing and supporting the chief financial officer/accounting officer with the
alignment of strategies and goals with the need for change

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 Competency area Competencies required Knowledge and skills
7. Project management The ability to work as part of a project team • Knowledge and understanding of project budgeting, human resource management,
and contribute to project management within change management, negotiation skills, service delivery mechanisms (internal and
the area of responsibility external) and outsourced service agreements (including in the case of a municipality
Public-and-Private Partnerships) and the legal framework governing the various
services particular to the area of responsibility
• Within the area of responsibility, basic knowledge and understanding of the operation
and technical workings of local government services and facilities
• Supporting the chief financial officer/accounting officer and contributing to the analysis,
evaluation and selection of project proposals. This includes, within the area of
responsibility, aligning the selection of projects and project outcomes with the integrated
development plan (IDP), the budget and service delivery and budget implementation
plan (SDBIP)
• Within the area of responsibility, ensuring an analytical and methodical structuring of
projects and project planning. This is to ensure adequate control over projects and the
efficient, effective and economic implementation and completion thereof to a high
quality and standard
• Where relevant to the area of responsibility, obtaining contract and project management
skills through appropriate training.
• In accordance with the lines of accountability and within the area of responsibility,
regularly monitoring, measuring and reporting on the performance of projects and
contracts
• Within the area of responsibility, ensuring regular reporting by external mechanisms
and all contractors and service providers, including the availability of adequate
information for the municipality to meet its statutory reporting obligations
• Contributing to and supporting the accounting officer with the establishment and
maintenance of a contract register
• Contributing to and supporting the accounting officer to establish and implement a
contract management process to ensure that, prior to their commencement, contracts
and amendments to contracts are in writing, include appropriate contract terms and
conditions (including section 116 contract requirements (MFMA)) and contain
performance based contract remuneration
• Implementing project plans within the area of responsibility
• Contributing to the resolution of problems and disputes within the area of responsibility,
as and when required
• Contributing to and providing technical and administrative support when the municipality
consults and secures stakeholder and community support for, and involvement in
projects where relevant.

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 Competency area Competencies required Knowledge and skills
8. Legislation, policy and Within the area of responsibility, the ability to • Basic knowledge and understanding of the municipality’s environment (internal and
implementation support and contribute to the formulation of external), the Constitution, national and provincial legislation and policy, and the
policy and in the case of a municipality also legislative framework governing local government as well as the municipality’s By-laws
By-laws and policies
• Good verbal communication and writing skills and an ability to research and analyse
information
• Within the area of responsibility, supporting the chief financial officer/accounting officer
and contributing to the process of adopting policies and making By-laws. This includes
advising the chief financial officer/accounting officer on the financial and non-financial
impact of proposed By-laws and policies OR in the case of a municipal entity supporting
the accounting officer with the process of adopting policies including advising on the
financial and non-financial impact of proposed policies
• Within the area of responsibility, supporting the chief financial officer/accounting officer
with the administrative aspects of the process for adopting policies and in the case of a
municipality also making By-laws
• Supporting the chief financial officer/accounting officer and contributing to the
formulation and drafting of municipal policies and in the case of a municipality also By-
laws in alignment with the integrated development plan (IDP), the Constitution, national
and provincial legislation and policy, and the legislative framework governing local
government, having regard to cooperative government. This process should include
consideration of and alignment with existing policies and By-laws and be within budget
constraints.

The ability to implement and manage the • Within the area of responsibility, implementing and managing the implementation and
implementation of legislation and policy within enforcement of policies and By-laws,
the area of responsibility • Supporting the chief financial officer/accounting officer and contributing to the
maintenance of a register of non-compliance with legislative requirements. This
includes, within the area or responsibility, regularly reporting these to the chief financial
officer/accounting officer and other role players. For example, instances of non-
compliance with the MFMA are required to be reported to the National Treasury
• Within the area of responsibility, regular monitoring and reporting to the chief financial
officer/accounting officer on the implementation of policies and compliance with
legislative requirements
• Within the area of responsibility, regularly reviewing and, where necessary, proposing
to the chief financial officer/accounting officer amendments to policies and in the case
of a municipality also By-laws to ensure their relevance and alignment with the
strategies and goals
• Within the area of responsibility, monitoring and ensuring enforcement of municipal By-
laws, including penalties and fines for non-compliance
For purposes of the area of responsibility, regularly consider the impact of amendments to the
Constitution, national and provincial legislation and policy, and the legislative framework
governing local government on the municipality’s By-laws and policies

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 Competency area Competencies required Knowledge and Skills
9. Stakeholder relations Within the area of responsibility, the ability to • Within the area of responsibility, basic knowledge and understanding of stakeholders
establish and maintain appropriate and recognising the varying relations required with stakeholders and the impact on the
stakeholder relations. municipality and the municipality’s impact on its stakeholders
• Within the area of responsibility, establishing and maintaining effective and relevant
external stakeholder relations
• Within the area of responsibility, supporting the chief financial officer/accounting officer
with and maintaining clear roles and responsibilities, service levels, reporting lines and
communications with other departments within the municipality and in the case of a
municipality also with its municipal entities, to ensure effective and relevant internal
stakeholder relations.
• Within the area of responsibility, supporting the chief financial officer/accounting officer
with and contributing to stakeholder consultation (internal and external) as envisaged
and required by the Municipal Systems Act and the MFMA.

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 Competency area Competencies required Knowledge and Skills
10. Supply Chain Management The ability to contribute to the supply chain • Basic knowledge and understanding of the legislative framework governing the supply
management function chain management function (including the Municipal Supply Chain Management
Regulations, the Preferential Procurement Policy Framework Act, 2000, etc)
• Within the area of responsibility, implementing delegations for supply chain
management powers and duties in accordance with the Municipal Supply Chain
Management Regulations.
• Implementing the supply chain management policy within the area of responsibility to
ensure supply chain management that is fair, transparent, competitive and cost
effective
• Within the area of responsibility, contributing to the maintenance of registers to support
the supply chain management function, including details of all tenders received and
awarded, disclosure of sponsorships, inducements, rewards, gifts and favours, awards
to close family members and persons in the service of the state, etc.
• Implementing measures to combat abuse of the supply chain management system,
fraud, corruption, favouritism and unfair and irregular practices

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11. Audit and Assurance The ability to support the audit process, in • Within the area of responsibility, providing administrative support and ensuring access
order to obtain the optimum level of assurance of the internal audit unit, audit committee and the Auditor-General to the financial
from the Auditor-General records and all relevant information of the municipality or municipal entity to enable
them to perform their respective functions
• Contributing to the analysis of reports and advice of the internal audit unit, audit
committee and Auditor-General, assisting with management responses in this regard
and taking appropriate action as it relates to the area of responsibility
• Contribute to the timely preparation of accurate annual financial statements and the
annual report
• Within the area of responsibility, ensuring and managing appropriate communication
with the Office of the Auditor-General
• During the audit, timeously responding to and coordinating responses within the area of
responsibility to audit queries and requests for additional information
• The audit process provides the municipal council, the board of directors and
stakeholders with the level of assurance that can be placed on finances. Financial
officials, within the area of responsibility, should consistently ensure improvement of
financial management practices of the municipality and/or municipal entities to strive to
obtain the optimum level of assurance from the Auditor-General.

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