SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Demonstrate an understanding of municipal financial management and budgeting 
SAQA US ID UNIT STANDARD TITLE
244295  Demonstrate an understanding of municipal financial management and budgeting 
ORIGINATOR
SGB Administration 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Public Administration 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 3  NQF Level 03  6 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
This unit standard designed for learners seeking to enter Local Government structures and wishing to acquire general competences related to the functioning of Local Government. This unit standard focuses on municipal budgeting and will enable the learner to acquire the necessary competences to interpret and understand the basic principles of budgeting within a Local Government environment in order to function more effectively in own work context.

The qualifying learner is capable of:
  • Outlining the way in which financial management is ensured within the Local Government.
  • Discussing the definition of a budget and its importance in Local Government.
  • Identifying and discussing revenue resources in Local Government.
  • Describing the budget process in Local Government. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that the learner accessing this standard will be competent in:
  • Communication at NQF Level 2.
  • Mathematical Literacy at NQF Level 2. 
    		•

    UNIT STANDARD RANGE 
    N/A 

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Outline the way in which financial management is ensured in Local Government. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The reasoning for Local Government financial management being a key priority in government is discussed with reference to the MFMA and financial governance. 

    ASSESSMENT CRITERION 2 
    The basic purposes of financial management in Local Government are explained with examples. 

    ASSESSMENT CRITERION 3 
    The way in which the MFMA has been used to modernise municipal financial management is discussed in relation to the old system of financial management. 

    ASSESSMENT CRITERION 4 
    Ways in which to detect financial problems are identified with examples. 

    SPECIFIC OUTCOME 2 
    Explain why a budget is important in Local Government. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The purpose of a budget is explained with examples. 

    ASSESSMENT CRITERION 2 
    The elements of a budget are explained with examples. 
    ASSESSMENT CRITERION RANGE 
    Elements include but are not limited to income, expenditure and the sources of income and typical expenses incurred in budget.
     

    ASSESSMENT CRITERION 3 
    The differently structured budgets within municipality are discussed with examples. 
    ASSESSMENT CRITERION RANGE 
    Differently structured budgets within a municipality include but are not limited to capital and operating budgets.
     

    ASSESSMENT CRITERION 4 
    The concept of multi-year budgeting within municipalities is discussed in relation to its purpose of accountability. 

    ASSESSMENT CRITERION 5 
    The role of the Municipal Finance Management Act (MFMA) in overall budgeting is discussed with examples. 

    SPECIFIC OUTCOME 3 
    Explain the sources of revenue in Local Government. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Internal sources of revenue are discussed with examples. 
    ASSESSMENT CRITERION RANGE 
    Internal sources of revenue include but are not limited to capital finance generated by the municipality itself, e.g. rates and taxes, busses and metres for parking, water, electricity, sewage and waste removal.
     

    ASSESSMENT CRITERION 2 
    External sources of revenue are discussed with examples. 
    ASSESSMENT CRITERION RANGE 
    External sources of revenue include but are not limited to grants and subsidies and the Municipal Infrastructure Grant (MIG).
     

    ASSESSMENT CRITERION 3 
    Other sources of revenue are discussed with examples. 

    ASSESSMENT CRITERION 4 
    The way in which revenue affects the overall budget is discussed with examples. 

    SPECIFIC OUTCOME 4 
    Describe the budget process in Local Government. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The relation between National, Provincial and Municipal budgets is explained in relation to how they all affect municipal budgeting. 

    ASSESSMENT CRITERION 2 
    The various objectives that affect the budget within the Local Government environment are discussed with examples. 

    ASSESSMENT CRITERION 3 
    The importance of the MFMA and IDP in budget processes is discussed with examples. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    Any individual wishing to be assessed (including through RPL) against this unit standard may apply to an assessment agency, assessor or provider institution accredited by the relevant ETQA, or an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA, or an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this unit standard or assessing this unit standard must be accredited as a provider with the relevant ETQA, or an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Moderation of assessment will be conducted by the relevant ETQA at its discretion. 
    		•

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
  • A brief introduction to the MFMA.
  • Budgeting principles and techniques.
  • Sources and uses of revenue.
  • The principles behind national, provincial and municipal budgets. 
    		•

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identify and solve problems using critical and creative thinking processes to interpret how specific parts of a local government budget affect own work context. 

    UNIT STANDARD CCFO WORKING 
    Work effectively with others as a member of a team, group, organisation or community to process information relating to budgets. 

    UNIT STANDARD CCFO ORGANISING 
    Organise and manage oneself and one's activities responsibly and effectively in order to ensure that boundaries of budget are integrated into own work context. 

    UNIT STANDARD CCFO COLLECTING 
    Collect, analyse, organise and critically evaluate information in order to effectively interpret the basics of a local government budget as it applies to own work context. 

    UNIT STANDARD CCFO COMMUNICATING 
    Communicate effectively using visual, mathematical and/or language in the modes of oral and/or written persuasion to communicate information pertaining to budgets. 

    UNIT STANDARD CCFO SCIENCE 
    Use science and technology effectively and critically, showing responsibility to the environment and health of others in ensuring that information pertaining to budgets is relayed correctly. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Demonstrate an understanding of the world as a set of interrelated systems by recognising that local government budgets do not exist in isolation but are affected by the various economic, political and internal factors. 

    UNIT STANDARD CCFO CONTRIBUTING 
    Participate as responsible citizens in the life of local, national and global communities by ensuring that budget boundaries and limitations are adhered to within own job context. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    N/A 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  58644   National Certificate: Local Government Support Services  Level 3  NQF Level 03  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  LG SETA 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Josmap Training Institute 
    2. Lewerb Holdings (PTY) Ltd 
    3. MANCOSA Pty (Ltd) 
    4. Mortarboard Training Solutions 
    5. Petra Institute of Development 
    6. Regent Business School (Pty) Ltd t/a Regent Business School 
    7. Tloumogale Business Development & Consulting 
    8. Tshwane Training Institute (PTY) LTD. 


    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.