South Africa: Consolidated Regulations

MUNICIPAL REGULATIONS ON MINIMUM COMPETENCY LEVELS 2007

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Last checked: 9 October 2019

LOCAL GOVERNMENT: MUNICIPAL FINANCE MANAGEMENT ACT

Act 56 of 2003.

MUNICIPAL REGULATIONS ON MINIMUM COMPETENCY LEVELS, 2007
[Updated to 15 June 2007]

GoN R493, G. 29967 (c.i.o 1 July 2007).

The Minister of Finance, acting with the concurrence of the Minister for Provincial and Local Government, has in terms of section 168 of the Local Government: Municipal Finance Management Act, 2003 (Act 56 of 2003), made the regulations as set out in the Schedule.

SCHEDULE

ARRANGEMENT OF REGULATIONS

CHAPTER 1
INTERPRETATION OF THESE REGULATIONS

1. Definitions

CHAPTER 2
ACCOUNTING OFFICERS OF MUNICIPALITIES AND MUNICIPAL ENTITIES

2. General competency levels for accounting officers
3. Minimum competency levels for accounting officers

CHAPTER 3
CHIEF FINANCIAL OFFICERS OF MUNICIPALITIES AND MUNICIPAL ENTITIES

4. General competency levels for chief financial officers
5. Minimum competency levels for chief financial officers

CHAPTER 4
SENIOR MANAGERS OF MUNICIPALITIES AND MUNICIPAL ENTITIES

6. General competency levels for senior managers
7. Minimum competency levels for senior managers

CHAPTERS
OTHER FINANCIAL OFFICIALS OF MUNICIPALITIES AND MUNICIPAL ENTITIES

8. General competency levels for other financial officials
9. Minimum competency levels for financial officials at middle management level

CHAPTER 6
SUPPLY CHAIN MANAGEMENT OFFICIALS OF MUNICIPALITIES AND MUNICIPAL ENTITIES

10. General competency levels for officials involved in implementation of supply chain management policy
11. Minimum competency levels for heads of supply chain management units
12. Minimum competency levels for supply chain management managers

CHAPTER 7
GENERAL AND TRANSITIONAL PROVISIONS

13. Competency assessments
14. Reporting on and monitoring competency levels
15. Existing financial and supply chain management officials not meeting minimum competency levels
16. Attainment of competency levels within prescribed timeframes to be included in performance agreements
17. Assistance by municipalities and municipal entities to financial and supply chain management officials to attain minimum competency levels
18. Prohibition on the employment of new financial and supply chain management officials not meeting minimum competency levels
19. Title

CHAPTER 1
INTERPRETATION OF THESE REGULATIONS

1. Definitions

(1) In these Regulations, a word or expression to which a meaning has been assigned in the Act has the same meaning as in the Act, and unless the context otherwise indicates—

“effective date”, in relation to these Regulations, means the date on which these Regulations come into effect;

“financial official”, in relation to a municipality or a municipal entity, means an official of a municipality or municipal entity exercising financial management responsibilities, and includes—

(a) the accounting officer;

(b) the chief financial officer;

(c) a senior manager; or

(d) any other financial official;

“middle management level” means a management level associated with persons in middle management positions responsible for supervising staff, and includes—

(a) an official directly accountable to a manager in the senior management level; or

(b) a person that occupied a position in a management level substantially similar to middle management level, outside the local government sphere;

“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);

“Performance Regulations” means the Local Government: Municipal Performance Regulations for Municipal Managers and Managers directly accountable to Municipal Managers, published by Notice 805 of 2006, in terms of the Municipal Systems Act;

“senior management level” means a management level associated with persons in senior management positions responsible for supervising staff in middle management positions, and includes—

(a) the municipal manager of a municipality or the chief executive officer of a municipal entity;

(b) any manager directly accountable to—

(i) the municipal manager, in the case of a municipality; or

(ii) the chief executive officer, in the case of a municipal entity; or

(c) a person that occupied a position in a management level substantially similar to senior management level, outside the local government sphere;

“senior manager”—

(a) in relation to a municipality, means a manager referred to in section 56 of the Municipal Systems Act; or

(b) in relation to a municipal entity, means a manager directly accountable to the chief executive officer of the entity;

“supply chain management manager”, in relation to a municipality or municipal entity, means an official of the municipality or entity involved in the implementation of the supply chain management policy of the municipality or entity and who is directly accountable to the head of the supply chain management unit of the municipality or entity;

“supply chain management official”, in relation to a municipality or a municipal entity, means an official involved in the implementation of the supply chain management policy of a municipality or municipal entity, and includes—

(a) the head of the supply chain management unit; or

(b) a supply chain management manager;

“the Act” means the Local Government: Municipal Finance Management Act, 2003 (Act 56 of 2003);

“unit standard” means unit standard as defined in the regulations issued in terms of the South African Qualifications Authority Act, 1995 (Act 58 of 1995);

“value”, in relation to the annual budget of a municipality or municipal entity, means the value of the annual budget as determined in terms of subregulation (4);

“work-related experience” means the expertise of a person or skills attained by a person whether in the course of formal or informal employment.

(2) These Regulations must be read with—

(a) section 83(1) of the Act which states that the accounting officer, senior managers, the chief financial officer and other financial officials of a municipality must meet the financial management competency levels prescribed by regulation;

(b) section 107 of the Act which states that the accounting officer, senior managers, any chief financial officer and all other financial officials of a municipal entity must meet the financial management competency levels prescribed by regulation; and

(c) section 119(1) of the Act which states that the accounting officer and all other officials of a municipality or municipal entity involved in the implementation of the supply chain management policy of the municipality or municipal entity must meet the competency levels for supply chain management prescribed by regulation.

(3) These Regulations should also be read with any guidelines on competency levels that may be prescribed for financial officials or supply chain management officials of municipalities and municipal entities in terms of section 168 of the Act.

(4) When determining for purposes of these Regulations the value of the annual budget of a municipality or municipal entity, the value must be taken as equal to total operating and capital expenditure authorised in the budget, and—

(a) in the case of the annual budget of a parent municipality, include the value of the annual budgets of its entities; or

(b) in the case of municipalities having shared control of a municipal entity, be taken as equal to the aggregated value of—

(i) the annual budget of anyone of those municipalities, as may be agreed between those municipalities; and

(ii) the annual budget of the entity.

CHAPTER 2
ACCOUNTING OFFICERS OF MUNICIPALITIES AND MUNICIPAL ENTITIES

2. General competency levels for accounting officers

(1) The accounting officer of a municipality must generally have the skills, experience and capacity to assume and fulfil the responsibilities and exercise the functions and powers assigned in terms of the Act to the accounting officer of a municipality.

(2) The accounting officer of a municipal entity must generally have the skills, experience and capacity to assume and fulfil the responsibilities and exercise the functions and powers assigned in terms of the Act to the accounting officer of a municipal entity.

(3) An accounting officer must note that specific financial management responsibilities, functions and powers are entrusted by the Act to accounting officers and that any failure to comply with these may constitute financial misconduct.

3. Minimum competency levels for accounting officers

The accounting officer of a municipality or municipal entity must comply with the minimum competency levels required for higher education qualification, work related experience, core managerial and occupational competencies and be competent in the unit standards prescribed for financial and supply chain management competency areas as set out below.

MINIMUM COMPETENCY LEVELS FOR ACCOUNTING OFFICERS

CHAPTER 3
CHIEF FINANCIAL OFFICERS OF MUNICIPALITIES AND MUNICIPAL ENTITIES

4. General competency levels for chief financial officers

(1) The chief financial officer of a municipality must generally have the skills, experience and capacity to assume and fulfil the responsibilities and exercise the functions and powers assigned in terms of the Act to the chief financial officer of a municipality.

(2) If a municipal entity has appointed an official as its chief financial officer that official must generally have the skills, experience and capacity to assume and fulfil the responsibilities and exercise the functions and powers assigned in terms of the Act to that official as chief financial officer of the entity.

(3) A chief financial officer must note that any failure to comply with any financial management responsibilities, functions and powers entrusted to that officer may constitute financial misconduct. In the case of chief financial officers of municipalities specific financial management responsibilities, functions and powers are entrusted by the Act to chief financial officers.

5. Minimum competency levels for chief financial officers

The chief financial officer of a municipality or municipal entity must comply with the minimum competency levels required for higher education qualification, work related experience, core managerial and occupational competencies and be competent in the unit standards prescribed for financial and supply chain management competency areas as set out below.

MINIMUM COMPETENCY LEVELS FOR CHIEF FINANCIAL OFFICERS

CHAPTER 4
SENIOR MANAGERS OF MUNICIPALITIES AND MUNICIPAL ENTITIES

6. General competency levels for senior managers

(1) A senior manager of a municipality must generally have the skills, experience and capacity to assume and fulfil the responsibilities and exercise the functions and powers assigned in terms of the Act to that senior manager.

(2) A senior manager of a municipal entity must generally have the skills, experience and capacity to assume and fulfil the responsibilities and exercise the functions and powers assigned in terms of the Act to that senior manager.

(3) A senior manager must note that any failure to comply with any financial management responsibilities, functions and powers entrusted to that senior manager may constitute financial misconduct.

7. Minimum competency levels for senior managers

A senior manager of a municipality or municipal entity must comply with the minimum competency levels required for higher education qualification, work related experience, core managerial and occupational competencies and be competent in the unit standards prescribed for financial and supply chain management competency areas as set out below.

MINIMUM COMPETENCY LEVELS FOR SENIOR MANAGERS

CHAPTER 5
OTHER FINANCIAL OFFICIALS OF MUNICIPALITIES AND MUNICIPAL ENTITIES

8. General competency levels for other financial officials

(1) Any financial official of a municipality at or below middle management level must generally have the skills, experience and capacity to assume and fulfil the responsibilities and exercise the functions and powers assigned in terms of the Act to that official.

(2) Any financial official of a municipal entity at or below middle management level must generally have the skills, experience and capacity to assume and fulfil the responsibilities and exercise the functions and powers assigned in terms of the Act to that official.

(3) A financial official referred to in subregulation (1) or (2) must note that any failure to comply with the financial management responsibilities, functions and powers entrusted in terms of the Act to that official may constitute financial misconduct.

9. Minimum competency levels for financial officials at middle management level

A financial official of a municipality or municipal entity at middle management level must comply with the minimum competency levels required for higher education qualification and work related experience and be competent in the unit standards prescribed for competency areas as set out below.

MINIMUM COMPETENCY LEVELS FOR FINANCIAL OFFICIALS AT MIDDLE MANAGEMENT LEVEL

CHAPTER 6
SUPPLY CHAIN MANAGEMENT OFFICIALS OF MUNICIPALITIES AND MUNICIPAL ENTITIES

10. General competency levels for officials involved in implementation of supply chain management policy

(1) The accounting officer and any official of a municipality involved in the implementation of the supply chain management policy of the municipality must generally have the skills, experience and capacity to assume and fulfil the responsibilities and exercise the functions and powers in respect of supply chain management—

(a) in the case of an accounting officer, assigned in terms of the Act or delegated by the municipal council to the accounting officer; or

(b) in the case of another official, delegated to the official by the accounting officer in terms of section even9 of the Act.

(2) The accounting officer and any other official of a municipal entity involved in the implementation of the supply chain management policy of the municipal entity must generally have the skills, experience and capacity to assume and fulfil the responsibilities and exercise the functions and powers in respect of supply chain management—

(a) in the case of an accounting officer, assigned in terms of the Act or delegated by the board of directors to the accounting officer; or

(b) in the case of another official, delegated to the official by the accounting officer in terms of section 106 of the Act.

(3) An accounting officer and officials involved in supply chain management must note that failure to comply with supply chain management responsibilities, functions and powers may constitute financial misconduct in terms of the Act.

11. Minimum competency levels for heads of supply chain management units

The head of a supply chain management unit of a municipality or municipal entity must comply with the minimum competency levels required for higher education qualification and work related experience and be competent in the unit standards prescribed for competency areas as set out below.

MINIMUM COMPETENCY LEVELS FOR HEADS OF SUPPLY CHAIN MANAGEMENT UNITS

12. Minimum competency levels for supply chain management managers

A supply chain management manager of a municipality or municipal entity must comply with the minimum competency levels required for higher education qualification and work related experience and be competent in the unit standards prescribed for competency areas as set out below.

MINIMUM COMPETENCY LEVELS FOR SUPPLY CHAIN MANAGEMENT MANAGERS

CHAPTER 7
GENERAL AND TRANSITIONAL PROVISIONS

13. Competency assessments

The municipal manager of a municipality and the chief executive officer of a municipal entity must ensure that competencies of all financial officials and supply chain management officials are assessed in order to identify and address gaps in competency levels of those officials.

14. Reporting on and monitoring competency levels

(1) The municipal manager of a municipality and the chief executive officer of a municipal entity must monitor, and take any necessary steps to ensure, compliance with the prescribed minimum competency levels for financial officials and supply chain management officials within the timeframes set out in regulation 15.

(2) A municipality must report the consolidated information in respect of the municipality and each of its entities set out in subregulation (4)—

(a) to the National Treasury and to the relevant provincial treasury by 30 January and 30 July of each year, until 30 July 2015; and

(b) in its annual report, reflecting the information as at the end of the financial year to which the report relates.

(3) A municipal entity must report to its parent municipality by 20 January and 20 July of each year, and in its annual report, the information set out in subregulation (4). The annual report of the municipal entity must reflect the information as at the end of the financial year to which the report relates.

(4) A report on the compliance with prescribed competency levels must be in the format set out in the Annexure hereto and include the following minimum information as at 30 June and 31 December of each year, as may be appropriate—

(a) the total number of financial officials employed;

(b) the total number of financial officials whose competency assessments have been completed;

(c) the total number of supply chain management officials employed;

(d) the total number of supply chain management officials whose competency assessments have been completed;

(e) the total number of financial officials and supply chain management officials that meet the prescribed competency levels; and

(f) the total number of financial officials and supply chain management officials whose performance agreements comply with regulation 16.

15. Existing financial and supply chain management officials not meeting minimum competency levels

Regulations 3, 5, 7, 9, 11 and 12 do not affect the continued employment and conditions of employment of a financial official or supply chain management official appointed by a municipality or municipal entity before the effective date, provided that such official attains the required higher education qualification and the required minimum competency level in the required unit standards for each competency area within a maximum period of five years from 1 January 2008.

16. Attainment of competency levels within prescribed timeframes to be included in performance agreements

(1) If a financial official or supply chain management official is employed by a municipality or municipal entity subject to a performance agreement and that official does not meet the minimum competency levels, attainment of such competency levels within the timeframes set out in regulation 15 must be included as a performance target in that officials performance agreement.

(2) If a municipal manager or chief financial officer or senior manager does not meet the minimum competency levels in the higher education qualification and the financial and supply chain management competency areas included in regulation 3, 5 or 7, attainment of such competency levels within the timeframes set out in regulation 15 must be included as a performance target in that officials performance agreement in terms of regulation 26 of the Performance Regulations.

(3) The attainment of minimum competency levels in terms of subregulation (2)—

(a) must be included in the performance agreement under the Financial Management Core Managerial and Occupational Competency in terms of regulation 26(8) of the Performance Regulations; and

(b) must be given a 30% weighting of the total 20% Core Managerial Competencies assessment score until the official has met the relevant minimum competency requirements of regulation 3, 5 or 7 respectively.

17. Assistance by municipalities and municipal entities to financial and supply chain management officials to attain minimum competency levels

A municipality or municipal entity must assist a financial official or supply chain management official who at the effective date does not meet the minimum competency levels, to attain those competency levels within the timeframes set out in regulation 15 by providing resources or opportunities for the training of that official.

18. Prohibition on the employment of new financial and supply chain management officials not meeting minimum competency levels

(1) No municipality or municipal entity may, with effect 1 January 2013, employ a person as a financial official or supply chain management official if that person does not meet the competency levels prescribed for the relevant position in terms of these Regulations.

(2) A municipality or municipal entity may before 1 January 2013 employ a person that does not meet the competency levels prescribed for the relevant position, provided that such officials continued employment is subject to a condition that the official attains the required higher education qualification and the required minimum competency level in the required unit standards for each competency area on or before 1 January 2013.

19. Title

These Regulations are called the Municipal Regulations on Minimum Competency Levels, 2007.

ANNEXURE

MFMA Implementation Report: Municipal Regulations on Minimum Competency Levels