Presentation Footer1 CO-OPERATION BETWEEN IMFO AND SAICA – CAPACITY BUILDING OF MUNICIPAL FINANCIAL STRUCTURES 13 September 2011

2 BACKGROUND Ongoing discussions between SAICA and IMFO Pressure from Accountant-General and Auditor-General to assist in public sector Gauteng DLG, together with DBSA, working on “Operation Clean Audit” Municipal Finance Management Act (MFMA) Gauteng Finance Summit (2007) Siyenza Manje Project (DBSA) SAICA knowledge, relationships and experience Chantyl Mulder’s involvement on HRD technical working group and President’s BBBEE council

3 SKILLS SHORTAGE Independent research survey into shortage of financial skills 739 organisations interviewed (approximately) accountants short across different levels vacancies at NQF levels 3 to 6 in both financial and non-financial services sectors

4 SKILL LEVELS TOPP YOUNG PROFESSIONALS ’ ’ PROGRAMME MINIMUM COMPETENCY LEVELS (All senior/middle Finance Managers and SCM Managers) ACCOUNTING TECHNICIANS TRAINING CA(SA) National Treasury Interns SAICA/Deloitte Municipalities Project (All senior/middle Finance Managers and SCM Managers) AAT(SA) LOCAL GOVERNMENT ACCOUNTING PROGRAMMES NQF 6 NQF 7 NQF NQF 5 -6

5 AAT(SA) Collaboration between AAT(UK) and SAICA to develop and pilot the Local Government Accounting Certificate (NQF3) in 2007/2008 Continued collaboration to run a second pilot in 2008/2009 Commitment of SAICA and AAT (UK) to continue development of Accounting Technicians NQF 3 to NQF 5 - launch AAT (SA) – 21 October 2008 Provides professional status to graduates of all qualifications Five Levels of Membership RPL Membership process as introductory offer

6 SAICA/DELOITTE MUNICIPAL FINANCE TRAINING PROJECT Project Applied for in October 2008 Built upon experience in municipalities and National Treasury Qualification Advocacy with key stakeholders (DBSA, National Treasury, CoGTA) done prior to proposal submission Approval granted in May 2010 and contract signed September 2010 Funding requested = R100m Funding granted = R72m

7 CA(SA) LEVEL Grow CAs(SA) specifically for the Municipal environment Recruit learners specifically from rural areas and in partnership with potential recruiting municipalities Add learners to the existing TBF programme Training period delivered in partnership with large firms, National Treasury and Auditor-General Trainees deployed to Municipalities (of origin)

8 CAPACITY DEVELOPMENT Critical shortage of opportunities for learners not currently exiting education system Misalignment of educational output and municipal intake needs Specific skills barriers in rural areas Capacity and quality constraints at FET Colleges, which are the chosen vehicle for technical skills and rural development

9 SAICA/IMFO MOU Utilisation of SAICA Resources and skills for critical short-term skills development (for officials and councillors) – Governance, Audit Committees, Critical MFMA regulations Cooperation on establishment of any new qualifications Cooperation on professionalising the municipal finance structures Cooperation, guidance and support from IMFO in the roll-out of SAICA projects

10 CONCLUSION The development of a comprehensive and ongoing skills development initiative Include Short and Long-Term Interventions Creation of a sustainable long-term stakeholder team including IMFO, SALGA, LGSeta, CoGTA and National Treasury Public Private Partnerships Skills Development is ALL of our responsibility

11 QUESTIONS ?