Municipal Accounting

LERANING PROGRAMME 2
TITLE OF THE PROGRAMME: Municipal accounting and risk management
TITLE OF THE LEARNING PROGRAMME
MUNICIPAL ACCOUNTING AND RISK MANAGEMENT

SAQA ID UNIT STANDARD TITLE
116339 1. Apply risk management in South African municipalities NQF Level 6
116346
119348
2. Apply techniques and South African statutes to cash and investment management in a municipal environment
NQF Level 6
119350
116351 3. Apply selected GRAP to periodic accounting reporting process NQF Level 5
116357 4. Apply accounting principles and procedures in the preparation of reports and decision making NQF Level 5
116362 5. Conduct auditing planning and implementation in a South African municipality NQF Level 6
6. Design internal control and internal control evaluation framework NQF Level 5
7. Manage a municipality’s assets and liabilities NQF Level 6
Provider NQF Credits Unit Standard Type(s)
Name Level
Level 6 78 Core: Core Standard used in various qualifications
Time 780 Notional Hours
These will be made up as follows: 280 hours classroom based
500 hours practical application and assignments
Requirements of Level descriptors
This learning programme shall develop learners who demonstrate with regards to:
a) Applied competence
I. A fundamental knowledge base of the most important areas of one or more fields or disciplines, in addition to the fundamental
areas of study
II. An informed understanding of the key terms, rules, concepts, established principles and theories in one or more fields or disciplines
III. An understanding of the organization or operating environment as a system within a wider context
IV. An ability to apply essential methods, procedures and techniques of the field or discipline
V. An ability to apply and carry out actions by interpreting information from text and operational symbols or representations
VI. An ability to use their knowledge to solve common problems within relevant parameters to meet the needs of small changes in the
problem or operating context
VII. An ability to adjust an application of a common solution within relevant parameters to meet the needs of small changes in the
problem or operating context
VIII. An ability to motivate the change using relevant evidence
IX. A basic ability in gathering relevant information, analysis and evaluation skills
X. An ability to communicate and present information reliably and accurately in writing and verbally
b) Autonomy of learning
i. A capacity to take responsibility for their own learning within a supervised environment
II. A capacity to take decisions about and responsibility for actions
III. A capacity to evaluate their own performance against given criteria
IV. A capacity to take the initiative to address any shortcomings they find
1
The Overall purpose of the programme: The Municipal accounting and Risk management
programme aims to equip members with tools to manage risk and perform accounting duties
effectively, efficiently and accurately
Purpose of the How can this What must What must What values are
unit standard purpose be met learners know learners be able embodied in the
(Knowledge) to do (Skills) purpose
(Attitudes)
U/S 116339 Learners to attend At the end of the At the end of the At the end of the
Apply risk formal lessons programme programme programme
management in where information learners will have learners will be learners will
South African will be imparted knowledge and able to: understand the
municipalities and which will understanding of: importance of:
comprise of;
SO1 SO1
The person Group exercises Concept of Risk Highlight the role Risk management
accredited with Individual exercises management with of risk in SA municipalities
this standard Plenary and reference to its management in a
will be able to: brainstorming role and municipality Compliance with
sessions importance in a Identify different the legislation
Simulations municipality types of risk and
Apply the core Scenarios Different types of highlight the Accurancy
concepts of risk Oral presentations risk likelihood of non-
management in a Risk management management or Accountability
South African Preparation of formulation poor management
municipality report and process of the identified
assignments types
To inform policy Outline and
decision making describe the
and strategic appropriate steps
decision making to be taken to
processes about manage risk
the importance of
risk management SO2 SO2
in municipalities Legislation on risk Demonstrate the
management with ability to apply the
reference to the legal requirements
municipality to municipal risk
context management in
Different threats to South Africa in
a risk management which the process
systems of identifying
Tools and threats, and
approaches to identifying and
identify and evaluating
evaluate objectives of a risk
objectives of a risk management will
management plan be outlined and
discussed.
SO3 SO3
Comprehensive Demonstrate the
knowledge of the ability to
concept of good communicate the
governance concept of good
2
Main elements of governance
the King and referring to
Cadbury report on relevant elements
governance or discussion in
The relationship King/Cadbury
between risk Report
management and Demonstrate how
good governance good risk
management
contributes to good
governance
SO4 SO4
What are Develop a

appropriate municipality
reporting systems comprehensive risk
within the management and
municipality in reporting system
terms risk which
management encompasses a
What is a range of significant
enterprise-wide factors such as risk
risk management classification
and its significance systems, risk
in a municipality reporting
Risk classification mechanisms;
systems description of
roles,
responsibilities and
accountabilities
etc. Learner must
illustrate how this
will be executed in
accordance with
the accepted risk
management
practice.
SO5 SO5
Accepted risk Outline the risk

management management
practices processes and link
Risk management them to accepted
processes risk management
Procedures and practices
policies of risk To exhibit
management comprehension of
Internal control risk management
systems policies
What is risk of To constantly
fraud and review risk
weaknesses in management
relation to risk procedures and
policies
Identify risk of
fraud and
weaknesses in the
3
internal control
systems and
explain it in
accordance with
generally accepted
risk management
practice
Specific Outcomes
1. Identify the role played by risk management in a municipality

2. Interpret and apply legislation relevant to municipal risk management in South African
municipalities
3. Demonstrate how risk management contributes to good governance
4. Develop a municipality wide risk management and reporting system
5. Develop a risk management process
Critical Outcomes
1. The ability to identify the role played by risk management in a municipality

2. The ability to interpret and apply legislation relevant to municipal risk management in South
African municipalities
3. The ability to demonstrate how risk management contributes to good governance
4. The ability to develop a municipality wide risk management and reporting system
5. The ability to develop a risk management process
Essential Embedded knowledge

King Report
Critical Cross-field Outcomes (CCFO):

UNIT STANDARD CCFO IDENTIFYING
Identify and solve problems using critical and creative thinking processes, e.g. by trying to find
the best possible risk management options.
UNIT STANDARD CCFO WORKING

Work effectively with others as a member of a team, group, organization or community, e.g.
through communicating with others regarding risk management issues and fostering team
commitment for identifying and reducing risks.
UNIT STANDARD CCFO ORGANISING

Organise and manage oneself and one`s activities responsibly and effectively, e.g. through
managing one`s own risk effectively.
UNIT STANDARD CCFO COLLECTING

Collect, analyse, organise and critically evaluate information, e.g. through researching all possible
risk management solutions and presenting conclusions.
UNIT STANDARD CCFO COMMUNICATING

Communicate effectively using visual, mathematical and / or language skills in the modes of oral
and/or written persuasion, e.g. through advising and motivating others with regard to risk
management options.
UNIT STANDARD CCFO SCIENCE
4
Use Science and technology effectively and critically, showing responsibility to the environment
and health of others, e.g. use appropriate computer software for data capturing and document
storage purposes.
UNIT STANDARD CCFO DEMONSTRATING

Demonstrate an understanding of the world as a set of interrelated systems by recognising that
problem-solving contexts do not exist in isolation, e.g. in keeping in mind that risk management
effects the well being of not only the municipality but the country as a whole.
UNIT STANDARD CCFO CONTRIBUTING

Participating as responsible citizens in the life of local, national and global communities, e.g.
acting as custodian of ethical behaviour and maintaining a high level of commitment to providing
effective risk management policies and practices.
Unit standard 116339

Apply risk management in South African municipalities
Specific Outcome 1
Identify the role played by risk management in a municipality.
Assessment criteria List of Formative List of Summative

Assessment Activities Assessment criteria
The importance of risk In a plenary discussion ask In a form of a short
management is explained with learners to unpack the current assignment learners to
reference to institutions that have process of risk management. emphasise the importance of
failed because of poor risk
Learners to start by defining risk assessment
management
risk.
Different types of risk are Divide learners into small Based on the identified risks
identified and reasons are groups and ask them to types each learner to explore
provided as to why these risks identify and describe different each of them and motivate
need to be managed
types of risk why these risks need to be
managed
The objectives of a risk Divide learners into small
management plan are groups and ask them to
formulated so as to manage formulate the objectives of a
identified risks. risk management plan as to
manage risks

Specific Outcome 2
Interpret and apply legislation relevant to municipal risk management in South African municipalities.
5
Assessment criteria List of Formative Assessment List of Summative
Activities Assessment criteria
AC1 In small groups assign learners to
The requirements for risk identify; describe and interpret
management in South African the requirements for risk in South
municipalities are interpreted in African municipalities in terms of
terms of relevant legislation. relevant legislation. (facilitator to
provide copies of legislation)
AC2 On a pager; each learner to
Threats to a risk management identify; describe and evaluate
system are identified and
evaluated in terms of the degree
threats to a risk management
system in terms of the degree of
of threat they pose.
threat they pose
AC3 In small groups learners to
The objectives of a risk identify and evaluate objectives of
management plan adopted by a a risk management plan adopted
municipality are identified and by a municipality against relevant
evaluated against relevant legislative requirements
legislative requirements.

Specific Outcome 3
Demonstrate how risk management contributes to good governance
Assessment criteria List of Formative List of Summative

Assessment Activities Assessment criteria
AC1
The requirements for good Divide learners into groups ask
governance are recognised and them to define the concept of
included in a risk management governance
plan To identify the features of a poor
governance
To describe what makes
governance a good governance in
a risk management plan
AC2 Assign each learner to formulate

A professional code for risk a professional code for risk
management is formulated management including
including statements of ethical statements of ethical principles.
principles.

6
Specific Outcome 4
Develop a municipality wide risk management and reporting system.

The rationale for implementing an In a plenary learners are asked to
enterprise-wide risk management share their understanding of
system is explained and enterprise-wide risk management
benchmarked to best practice system
The accountability framework for Each learner is assigned to
risk management is developed in develop the accountability
a municipal context framework for risk management
in a municipal context
Risks are classified in terms of risk Ask each learner to identify
classification systems. different risk classification
systems and explain how to use
them to classify risk.
Roles, responsibilities and In a plenary learners to identify
accountabilities are described in and describe Roles,
terms of generally accepted risk responsibilities and
principles. accountabilities in terms of
generally accepted risk principles.
Measures required to control and Assign each learner to develop
report risk are developed in line relevant control and reporting
with generally accepted risk measures in line with generally
management practice accepted risk management
Mechanisms for risks to be practice
reported are implemented in line
with generally accepted risk Learners to describe how they
management practice would implemented reporting
mechanisms in line with generally
accepted risk management
practice

Specific Outcome 5
7
AC1
Develop a risk management Each learner to develop a risk
process. management process for their
respective municipalities. Learners
to ensure that the process is in
line with the legislative
requirements in regard to risk
management practices .
AC2 In a plenary ask learners to
The risk management process is critically review and comment on
commented on in line with the risk management process in
generally accepted risk line with generally accepted risk
management practice management practice
AC3 In a plenary ask learners to share
Continuous and periodic review their understanding of continuous
processes are consistently applied and periodic review processes and
to risk management procedures how they would apply them to
and policies. risk management procedures and
policies
AC4 In a plenary learners to Ask each learner to describe how
Internal control processes in the recognize; discuss and emphasise they would go about applying
risk management process are the significance of internal control Internal control processes in the
applied in line with generally process risk management process
accepted risk management
practice And
AC5
The link between risk of fraud and How they would fortify the
weaknesses in the internal control Internal control systems to
systems is explained in line with manage risk of fraud
generally accepted risk
management practice
UNIT STANDARD 116346

8
Purpose of the How can this What must the What must the What values are
unit standard purpose be learners know learners be able embodied in the
achieved (knowledge) to do purpose
Apply techniques formal lessons programme programme programme
and South where information learners will have learners will be learners will
African statutes will be imparted knowledge and able to: understand the
to cash and and which will understanding of: importance of:
investment comprise of;
management in SO1 SO1
a municipal Group exercises Financial and To apply legislative Compliance with
environment Individual exercises accounting conditions the legislation
Plenary and concepts with governing cash and
brainstorming reference to investment Effective and
The qualifying sessions Cash and management accurate cash
learner is able to: Simulations investment through management
Scenarios management and appropriate Transparency
 Apply the Oral presentations the relevant identification; Accountability
requirements of legislation interpretation and Development
South African Preparation of compliance with ( socio-economic)
municipal statutes report and these conditions
related to cash assignments
management, SO2 SO2
investment What are principles Identify and
management and for cash and comply principles
revenue investment of cash and
management. management investment
 Ensure the What are the management
effective and legislative
efficient requirements and
management of international
local government practices for
funds through an governing cash and
understanding of investment
the implications of management
the relevant
legislation SO3 SO3
governing cash, Legislation
investment and requirements for
revenue contracts with
management budgetary
 Assist in the implications
overall process of
social and
economic
development SO4
Relevant legislation SO4
on credit control
and debt collection
Elements and
conditions of the
National Credit Act
Debt collection and
credit control
requirements and
international
principles
9
Modern accounting
techniques in
terms of analyzing
debtors accounts
SO5
National treasury SO5
Regulations on National treasury
cash and Regulations on
investment cash and
responsibilities of investment
municipal official responsibilities of
and mayors municipal official
and mayors
Unit standard critical Outcomes
1. The ability to apply the legislative conditions governing cash and investment management
2. The ability to comply with sound principles for cash and investment management
3. The ability to implement the requirements of the legislation for contracts that have budgetary
implications
4. The ability to apply the legislative requirements and internationally recognised principles to credit
control and debt collection
5. The ability to apply the legislative requirements and treasury regulations on cash and investment
responsibilities of municipal
Unit standard specific Outcomes

1. Apply the legislative conditions governing cash and investment management
2. Comply with sound principles for cash and investment management
3. Implement the requirements of the legislation for contracts that have budgetary implications
4. Apply the legislative requirements and internationally recognised principles to credit control and
debt collection
5. Apply the legislative requirements and treasury regulations on cash and investment responsibilities
of municipal officials and mayors
Unit standard Essential Embedded knowledge

1. Legislative provisions which elaborate on contracts having future budgetary implications;
2. Asset, liability and revenue management responsibilities of municipal officials;
3. The financial governance of municipal entities;
4. Asset, liability and revenue management responsibilities of municipal entity officials;
5. Expenditure management responsibilities of municipal officials
Critical cross-field Outcomes

Identify and solve problems using critical and creative thinking processes, e.g. example by trying
to find the best possible investment management options.

through communicating with others regarding legislative issues and fostering team commitment
10
amongst the public sector as well as private sector stakeholders.

Organise and manage oneself and one`s activities responsibly and effectively, e.g. through the
demonstration of ethical and moral principles in all investment management processes.

investment management options and presenting conclusions.

Communicate effectively using visual, mathematical and/or language skills in the modes of oral
and/or written persuasion, e.g. through advising and motivating others with regard to
investment management options.

storage purposes.

problem-solving contexts do not exist in isolation, e.g. in keeping in mind that investment
management effects the financial well being of not only the municipality but the country as a
whole.

effective investment and liability management policies and practices.

Apply techniques and South African statutes to cash and investment management in a
municipalities environment
Specific Outcome 1
Apply the legislative conditions governing cash and investment management

AC1 Plenary discussion Assign each learner to identify
11
The conditions governing and give an interpretation of the
municipal bank accounts are Ask learners to share their conditions governing municipal
interpreted from relevant knowledge of the municipal bank bank accounts as stipulated in the
legislation accounts legislation
AC2 In small groups learners to use
The legislative requirements the legislation to identify and
governing investments in financial interpret the legislative
securities are interpreted from requirements governing
relevant legislation investments in financial securities

Specific Outcome 2
Comply with sound principles for cash and investment management

AC1 In a plenary learners to highlight Ask each learner to examine cash
The requirements for governing the processes of cash and and investment management in
cash and investment management investment management in the their municipality and advice if
are identified in terms of relevant municipality the process adhered to meet the
legislation and international Furthermore identify the requirements for governing cash
practices implications and possible impact and investment management in
of improper cash and investment terms of relevant legislation and
management international practices
AC2 Place learners in small groups,

Principles underpinning effective ask them to describe liquid
management of liquid resources resource and give few examples
are identified and applied to set and identify principles
up an effective cash management underpinning effective
system for a municipality management of these resources
and how their application would
set up an effective cash
management system for a
municipality

Specific Outcome 3
Implement the requirements of the legislation for contracts that have budgetary implications
AC1 Assign each learner to review
Requirements and processes to their municipality process and
12
be followed when a municipality practice of entering into a
enters into contracts that impose contract that impose financial
financial obligations on the obligations on the municipality
municipality beyond three years beyond three years and advice if
are complied with based on the these processes are adherent to
regulatory framework the requirements and processes
based on the regulatory
framework
AC2 Divide learners in small groups
Investment principles regarding and ask them to identify and
acquisition and disposal are discuss investment principles
selected and applied based on regarding acquisition and disposal
sound business principles. and describe the steps they
would take to select and apply
them based on sound business
principles
AC3
Modern financial management Each learner to identify and
techniques are selected and used describe modern financial
to manage the liquidity of a management techniques and
municipality explain of what benefit they
would be in managing the
liquidity of a municipality. Please
ask learner to describe or explain
one or two functionalities of a
specific technique

Specific Outcome 4
Apply the legislative requirements and internationally recognised principles to credit control and debt
collection.
AC1 Assign each learner to review
Requirements of the legislation their specific municipality debt
governing debt collection and collection and credit control
credit control of municipalities are processes and advice if these
complied with in terms of the processes are compliant with the
regulatory framework. requirements of the legislation
governing debt collection and
credit control of municipalities
with reference to the regulatory
framework
AC2 Each learner to identify and

Modern techniques of analysing describe modern techniques of
debtor accounts are identified and analyzing debtors accounts
applied to facilitate debt collection explain what value they would
or reduce bad debts add to the process and practices
of debt collection
AC3 In small groups ask learners to
Sound credit control principles are identify and describe sound credit
selected and applied in municipal control principles in municipal
credit control and debt collection credit control and debt collection
and briefly describe how they
13
should be applied

Specific Outcome 5
Apply the legislative requirements and treasury regulations on cash and investment responsibilities of
municipal officials and mayors
AC1 Plenary discussion Assign each learner to explain
The requirements and treasury how they would select and apply
guidelines covering the Ask learners to identify and requirements and treasury
responsibilities of municipal describe the requirements and guidelines covering the
officials in cash and investment treasury guidelines covering the responsibilities of municipal
management are selected and responsibilities of municipal officials in cash and investment
applied in terms of the legislative officials in cash and investment management in terms of the
framework management legislative framework
AC2 Groups
Short-term opportunities for Divide learners in small groups
investing surplus liquid resources and ask them to identify and
are identified and discussed in the discuss Short-term opportunities
context of treasury guidelines. for investing surplus liquid
resources in the context of
treasury guidelines.

unit standard purpose be learners know learners be embodied in the
achieved (Knowledge) able to do purpose
(Skills) (Attitudes
14
Apply selected formal lessons programme learners programme programme
GRAP (Generally where information will know and learners will be learners will
Recognised will be imparted understand: able to: understand the
Accounting and which will importance of:
Practices) to comprise of; SO1 SO1
periodic Conceptual Explain and
accounting Group exercises framework underlying apply conceptual Participatory
reporting Individual exercises GRAP framework process
process Plenary and Stakeholders and underlying GRAP ( Stakeholder
brainstorming their needs Demonstrate involvement)
sessions Elements of public knowledge of
The qualifying Simulations sector financial stakeholders and Transparency
learner is capable Scenarios statements their needs
of: Oral presentations Financial How to execute Compliance with
measurement tools and analyse the legislation
 Defining and Preparation of financial
applying GRAP in report and statements Accurate financial
the context of assignments reporting
public finance and SO2 SO2
administration Financial principles; To prepare a The role of GRAP
 Defining a concepts periodic financial
conceptual GRAP principles statement in
framework for Elements of periodic which
accounting financial statement Statement of
reporting changes in Net
 Defining asset, financial
measurement position,
criteria for financial
determining performance and
financial position statement of
and performance cash flow will be
 Identifying presented
financial reports To prepare and
and identifying and present notes in
resolving support of
discrepancies financial
statement
SO3 SO3
Financial reporting Demonstrate
What are the knowledge and
statutory provision on comprehension
financial reporting of the
What are the treasury implications of
guidelines on various Acts;
financial reporting provisions; legal
Municipal Financial guidelines and
Management Act requirements
relating to
financial
reporting
To compile and
present an
annual reports
and financial
statements
15
SO4 SO4
Financial and To analyse and
accounting interpret
documents with financial
specific reference to statements in
financial statements which the
Financial financial
concepts/language performance and
health of the
specific
municipality will
Commented on
Specific Outcomes
1. Explain and apply the conceptual framework underlying GRAP

2. Present and prepare periodic financial statements in accordance with GRAP
3. Explain selected statutory provisions related to financial reporting
4. Analyse and interpret financial statements
Critical Objectives
1. The ability to explain and apply the conceptual framework underlying GRAP
2. The ability present and prepare periodic financial statements in accordance with GRAP
3. The ability explain selected statutory provisions related to financial reporting
4. The ability analyse and interpret financial statements

 Public sector policies and procedures relating to financial reporting
 Public Finance management Act
 Measurement tools for benchmarking financial performance
 GRAP
 GAAP
 Defining conceptual frameworks for accounting reporting
 Financial management techniques in respect of accounting reporting
Critical cross-field Outcomes

Identify and solve problems using critical and creative thinking processes to define conceptual
frameworks for financial reporting

Work effectively with others as a member of a team, group, organization or community to
brainstorm ideas and concepts pertaining to accounting reporting frameworks and processes

Organise and manage oneself and one`s activities responsibly and effectively in order to ensure
accounting reporting is expediently completed

Collect, analyse, organize and crtically evaluate information in order to evaluate accounting
reports
16
Communicate effectively using visual, mathematical and/or language in the modes of oral and/or
written persuasion to convey information pertaining to accounting reports

Use science and technology effectively and critically, showing responsibility to the environment
and health of others in ensuring that reporting systems are managed in an integrated and secure
manner

accounting reporting problem solving contexts do not exist in isolation and form part of a
regulatory framework within the public sector

Participating as responsible citizens in the life of local, national and global communities by
ensuring that reports are completed according to GRAP.

Apply selected GRAP (Generally Recognised Accounting Practices) to periodic accounting reporting process
Specific Outcome 1
Explain and apply the conceptual framework underlying GRAP.
AC1 In a short report each learner to
Overall objectives of public sector identify and explain overall
financial reporting are explained objectives of public sector
with reference to specific
financial reporting with reference
information needs of stakeholders
to specific information needs of
stakeholders
AC2 In their workbooks; each leaner
The elements of public sector to write down with a brief
financial statements relating description elements of public
to the measurement of sector financial statements
financial positions are relating to the measurement of
identified and applied. financial positions; financial
AC3 performance and; cash flow and
The elements of public sector explain how they would each of
financial statements relating them to perform different
to measurement of financial financial tasks such as preparation
performance are identified of an annual statements etc.
and applied in the preparation
of annual statements.
AC4
The elements of public sector
financial statements relating
to cash flow are identified and
applied in the preparation of
financial reports.
AC5 Plenary discussion
The need for conceptual Ask learners to share their
framework and standard of understanding of what they the
17
financial reporting for the need for conceptual framework
public sector organisation is and standard of financial
clearly understood and reporting and ask them to
applied. highlight the impact of the
misunderstanding of the above
AC6 Assign each learner to identify
Qualitative characteristics of and explain Qualitative
financial information are characteristics of financial
identified and explained with information with reference to
reference to measurement measurement issues.
issues.

Specific Outcome 2
Present separate periodic financial statements in accordance with GRAP.
AC1 The statement of changes in Divide learners into 4 groups Individually learners to access the
net assets is presented financial statements of their
AC2 The statement of financial Assign learners to prepare a municipalities and to compile a
position is presented financial statement in which the report ‘changes in net assets;
AC3 The statement of financial following will be highlighted; financial position; financial
performance is presented ‘changes in net assets; performance; and cash flow’
AC4 financial position; financial
The statement of changes in net performance; and cash flow’
assets is presented The first group to give comments
AC5 and feedback on the changes in
The statement of cash flow is net assets; second group on
presented financial position; third group on
financial performance; fourth
group on cash flow
18
AC6 In the same groups learners to
The notes in support of financial decide on what and how much
statements are presented information should be included in
the notes in support of financial
statements. At the end the notes
must be prepared and presented
Recognition and measurement identify and describe recognition
criteria are understood and and measurement criteria and
applied explain how to go about using
them.

Specific Outcome 3
Explain selected statutory provisions related to financial reporting
AC1 The public financial Brainstorm Assign each learner to compile a
management act disclosure report in which they identify and
requirements are identified and explain the following in the
explained in the presentation of context of presentation of
financial statements financial statements;
AC2 Learners to brainstorm the
The treasury guidelines relating to implications of not complying to The requirements of public
financial reporting are explained the requirements; procedures and financial management act
in the presentation of financial principles of financial reporting disclosure
statements
The treasury guidelines relating to
financial reporting
The Municipal Financial

Management Act disclosure
requirements relating to financial
reporting
AC3
The Municipal Financial
Management Act disclosure
requirements relating to financial
reporting is explained in the
presentation of financial
statements, including annual
reporting

Specific Outcome 4
Analyse and interpret financial statements
AC1
The financial position and Ask learners to include the
performance disclosed in financial In same groups; ask learners to
19
statements are analysed analyse and interpret financial analysis and interpretation of the
AC2 position; financial performance specified financial data (position;
The financial position and and cash-flow disclosed in performance and cash flow) in the
performance disclosed in separate report that they have prepared
financial statements
financial statements are (refer to SO 3)
interpreted
AC3
The cash-flow disclosed in
financial statements is analysed
(Skills) (Attitudes
Learners to attend At the end of the At the end of the At the end of the
Unit standard formal lessons programme programme programme
where information learners will know learners will be learners will
119350 will be imparted and understand: able to: understand the
Demonstrate an
and which will importance of:
understanding of
comprise of; SO1 SO1
accounting
Accounting To demonstrate Compliance with
principles and
Group exercises principles; the ability to stipulated
reporting
Individual exercises systems; execute accounting accounting
requirements and
Plenary and techniques and functions by principles; systems
nature of functions
brainstorming reporting applying relevant ; and guidelines and
20
in public sector sessions requirements in following the Compliance with
Simulations the public sector appropriate the legislation
Scenarios Treasury guidelines guidelines Honesty and
The qualifying Oral presentations principle; using integrity
learner is capable accounting Accuracy
of: Preparation of techniques and
report and reporting which is
 Demonstrating assignments in line with the
an understanding framework of
of accounting accounting
principles and reporting
reporting
requirements and
nature of functions SO2 SO2
in the public sector Different Be able to identify
 Using accounting and use different
accounting techniques and accounting
techniques and approaches and techniques and
approaches to their approaches to
process financial appropriateness in prepare for the
information specific financial processing of
 Applying end of information specific financial
period accounting processes information
procedures in the
preparation of
financial SO3 SO3
statements Various Financial Use end of period
 Applying statements and accounting to
procedures their purposes prepare; finalise
necessary for Preparation of and present
control over cash these Financial financial
transactions and statements statements
balances Different
 Utilising accounting
procedures for procedures with
reporting and reference to End of
recording accounts period accounting
receivables procedures
SO4
SO4
Various procedures
for cash control To identify and
Cash management apply relevant
Cash transactions procedures for
and balances control over cash
Process of transactions and
Executing Cash balance
transactions and
balances
SO5
SO5
The concept of
accounts The ability to use
receivables relevant
Relevant accounting
accounting systems; resources
21
procedures and and procedures to
system for report and record
recording and accounting
reporting accounts receivables
receivables
SO6
What the concept SO6
of liability in the To establish a
public sector system for the
recording and
reporting of
liabilities in the
public sector
Specific Outcomes
Demonstrate an understanding of accounting principles and reporting requirements and nature of functions
in the public sector
Use accounting techniques and approaches to process financial information
Apply end of period accounting procedures in the preparation of financial statements
Apply procedures necessary for control over cash transactions and balances
Utilise procedures for reporting and recording accounts receivables
Utilise procedures for recording and reporting on liabilities in the public sector
Critical Outcomes
The ability to demonstrate an understanding of accounting principles and reporting requirements and nature
of functions in the public sector
The ability to use accounting techniques and approaches to process financial information
The ability to apply end of period accounting procedures in the preparation of financial statements
The ability to apply procedures necessary for control over cash transactions and balances
The ability to utilise procedures for reporting and recording accounts receivables
The ability to utilise procedures for recording and reporting on liabilities in the public sector
Essential Embedded Knowledge
Accounting techniques
Legislation, regulatory frameworks, policies and procedures that apply to accounting in public sector finance
and administration
Financial statements
GAAP

Identify and solve problems using critical and creative thinking processes to manage accounts
effectively and according to procedures

Work effectively with others as a member of a team, group, organization or community to gather
all the necessary accounting information to consolidate into financial statements and reports
22
Organise and manage oneself and one`s activities responsibly and effectively in order to ensure
that accounting reports are completed within given timeframes

Collect, analyse, organize and critically evaluate information in order to assess any discrepancies

Communicate effectively using visual, mathematical and/or language in the modes of oral and/or
written persuasion to gather and disseminate accounting/financial information

Use science and technology effectively and critically, showing responsibility to the environment
and health of others in ensuring that accounting systems are effectively utilized

problem-solving contexts relating to financial decision making do not exist in isolation

Participating as responsible citizens in the life of local, national and global communities by
ensuring that all accounting practices and regulatory requirements are adhered to within the
public sector finance and administration
Assessment

Apply accounting principles and procedures in the preparation of reports and decision making
Specific Outcome 1
in public sector
AC1 Plenary discussion
The public sector accounting Ask learners to describe and
environment is explained in the explain the public sector
context of the public sector accounting environment in regard
to its processes; procedures;
standard; principles; elements
and practices
AC2 Individually learner to record and
The nature of accounting explain the nature of accounting
principles, concepts and principles, concepts and
organisations influencing the organizations influencing the
development of accounting development of accounting
practice for the public sector are practice for the public sector
explained.
AC3 Learners to review the current
Appropriate accounting systems accounting systems in the public
23
and procedures are derived and sector with the aim of evaluating
implemented in the public sector appropriateness and recommend
environment. as to what process to adhere to in
order to ensure appropriate
accounting systems in place
AC4 Divide learners in small groups Learners to prepare a brief report
Treasury guidelines relating to and ask them to identify and outlining how to adopt treasury
accounting are explained. explain treasury guidelines guidelines to the accounting
relating to accounting environment in the public sector
AC5 In a plenary learners to discuss

Understand the importance of the importance of maintaining
maintaining accounting records accounting records that are
that are updated timely updated timely. Each learner to
reflect on the system of
accounting record in their
municipality.
AC6 Each learner to list and explain
Understand the different financial the different financial reports to
reports to support management support management and
and decision-making in the public decision-making in the public
sector. sector.
Understand the difference discuss cash and accrual basis of
between the cash and accrual accounting. Each group to
basis of accounting. highlight the difference between
the two concepts

in public sector
Specific Outcome 2
Use accounting techniques and approaches to process financial information
Assessment criteria List of Formative Assessment List of Summative Assessment
Activities criteria
AC1 Learners to identify and describe
The different accounting records different accounting records that
that are necessary to process are necessary to process financial
financial information are information
prepared. These include the
general ledger, cash books, fixed
asset registers and stores
ledgers.
AC2 Learners to identify and compile
Regular reports on the financial the data that would be needed to
position, financial performance prepare regular reports on the
and cash-flow are prepared in- financial position, financial
year and analysed. performance and cash-flow
AC3 Each learner to recognize
Present information to decision- relevant information to be
makers on the performance
against the budget
presented to decision-makers on
the performance against the
budget
AC4 In plenary learners to explain
The use and role of the standard what the standards charts of
24
charts of accounts in the public accounts are used for and how
sector is explained they are used in the public sector

in public sector
Specific Outcome 3
Apply end of period accounting procedures in the preparation of financial statements.

AC1
Appropriate end of period In small groups learners to map
accounting procedures are used out how appropriate end of
to finalise selected financial period accounting procedures and
statements transactions contribute to
AC2 finalizing selected financial
End of period transactions and statements in accordance with
events are recognized, measured standards applying to the public
and recorded in finalizing financial sector.
statements in accordance with
standards applying to the public
sector.
AC3
Year-end financial statements are
reviewed and presented for
approval to the appropriate
person in the prescribed format

25
in public sector
Specific Outcome 4
Apply procedures necessary for control over cash transactions and balances.

Sound procedures for recording of describe how the procedures they
cash receipts and payments are would adhere to in recording of
applied. cash receipts and payments
AC2 In pairs, learners to explain how
Regular reconciliations are they prepare regular
prepared. reconciliations
AC3 On a pager each learner to outline
The principles and procedures and give brief description of the
underlying procedures of petty principles and procedures of
cash funds in the public sector are handling petty cash funds
identified and explained
AC4 In brief each learner to explain
Generally recognized internal how they would handle cash
controls of principles are applied receipts and payments using
in the handling of cash receipts generally recognized internal
and payments controls

in public sector
Specific Outcome 5
Utilise procedures for reporting and recording accounts receivables
Sound procedures for issuing identify and explain sound
invoices for services rendered are procedures for issuing invoices for
applied services rendered
AC2 In a plenary learners to explain
Account receivable ledgers are how they would handle account
maintained and reconciled receivables
AC3 In a plenary ask learner to share
An age analysis is prepared to their knowledge of an age
monitor debtor payments analysis and how it is performed
effectively.
AC4 Collections of bad debts and Each learner to record the process
reports related thereto are of collections of bad debts
completed
AC5 In a short report learners to
All legalities pertaining to the identify and describe all legalities
handling over of bad debt pertaining to the handling over of
accounts are adhered to bad debt accounts and highlight
the implications of non-adherence
Discounts and interest how they would calculate
calculations are determined for discounts and interest
26
accounts receivable according to
agreed payment terms

in public sector
Specific Outcome 6
Utilise procedures for recording and reporting on liabilities in the public sector
Records of liabilities and their In a plenary learners to explain
measurements are compiled and how they would handle records of
reconciled. liabilities
Interest is calculated on liable Each learner to demonstrate how
amounts they would calculate interest on
Discounts are calculated liable amounts and how they
according to payment terms and would calculate discounts
conditions according to payment terms and
conditions
(Skills) (Attitudes
Unit Standard Learners to attend At the end of the At the end of the At the end of the
116351 formal lessons programme learners programme programme
Conduct auditing where information will know and learners will be learners will
planning and will be imparted understand: able to: understand the
implementation in and which will importance of:
a South African comprise of; SO1 SO1
municipality Auditing with The ability to Auditing
Group exercises reference to; its show a sound Transparency
Individual exercises purpose, role, comprehension Accontability
People credited Plenary and processes; governing of the nature of Accuracy
with this Unit brainstorming principles and audit in relation Compliance with
Standard are able sessions standards; to purpose, role, the legislation
to: Simulations procedures and processes; Internal controls
Scenarios reporting governing The significance of
 Contribute to Oral presentations principles and accountability
the oversight role standards;
of councillors and Preparation of procedures and
risk management report and reporting.
in a municipality. assignments The ability to
 Contribute to adhere to the
unbundling of audit principles;
reports prepared processes and
by auditing procedures
27
professionals when preparing
for an execution
of any audit
work including
reporting
SO2 SO2
The scope of internal Demonstrate the
audit work competency to
The scope of internal critically discuss
audit work and evaluate he
The linkage between linkage between
the two the scope of
Evaluation methods both external
and techniques in and internal
regard to the linkage audit work and
between the external to present this
and internal audit information to
work the management
SO3
The role; elements SO3
and significance of To identify and
the concept of describe the
performance auditing role; elements
The role; elements and significance
and significance of of performance
the concept of auditing and
stewardship auditing stewardship
The differences and auditing
similarities between Make a clear
the two concepts distinction
between
stewardship
auditing and
performance
auditing
SO4 SO4
What does value for To identify and
money describe various
What are the audit steps in the
processes and audit process for
principle for achieving achieving value
value for money for money
SO5 SO5
Corporate Identify and
governance context describe the
What the concept of unique role of
accountability means audit in
The processes of encouraging the
internal control environment of
corporate
governance;
accountability
and internal
control
28
SO6 SO6
What the process of To identify and
auditing entails describe the
The key roles in this stages in
process performing an
The process of audit through to
preparing and the report of
reporting audit findings.
findings To identify all
role players in
the process of
performing an
audit
The process of
preparing and
presenting audit
findings
SO7 SO7
Different audit Able to read and
reporting systems; explain different
procedures forms of audit
and processes reports and be
able to present
the audit
findings to
management
Specific Outcomes
1. Demonstrate an understanding of the nature of audit and appraise the fundamental principles and
standards that are used to govern its practice
2. Describe and evaluate the scope of both internal and external audit work and audit`s relationship
to management.
3. Contrast the increased importance of performance auditing with the stewardship auditing in the
local government.
4. Identify various steps in the audit process for achieving value for money.
Critical Outcomes
1. The ability to demonstrate an understanding of the nature of audit and appraise the fundamental
principles and standards that are used to govern its practice
2. The ability to describe and evaluate the scope of both internal and external audit work and audit`s
relationship to management.
3. The ability to contrast the increased importance of performance auditing with the stewardship
auditing in the local government.
4. The ability to identify various steps in the audit process for achieving value for money.

A demonstrated understanding of: fundamental of accounting, South Africa`s relevant
legislation, and auditing procedures
29
Contribute to the solution of financial audit queries.

through choosing methods of communication which encourage team-work and maximise
participation.

Organise and manage oneself and one`s activities responsibly and effectively, e.g. through
building knowledge of your own communication skills and how you can improve your
communication with others.

options and being able to present these in the form of a coherent argument.

storage purposes.

problem-solving contexts do not exist in isolation, e.g. in keeping in mind that the way you can
communicate can effect the well being of individuals, communities and the country as a whole.

acting as custodian of ethical behaviour and maintaining a high Level of commitment to ensuring
that the municipal communication.

Conduct auditing planning and implementation in a South African municipality
Specific Outcome 1
Demonstrate an understanding of the nature of audit and appraise the fundamental principles and
standards that are used to govern its practice
AC1 Prepare a report explaining how
Clarification is made of the nature auditing works within the South
of auditing in relation to South African municipalities
Africa`s municipalities
In relation to municipal financial prepare and present fundamental
management process explanation auditing principles in relation to
of fundamental auditing principles municipal financial management
is succinctly presented. process
AC3 Prepare a report outlining;
The professional standards are describing and evaluating the
evaluated in relation to auditors` professional standards regarding
conduct and practice auditors` conduct and practice
30
Specific Outcome 2
Describe and evaluate the scope of both internal and external audit work and audit`s relationship to
management
AC1 Ask each learner to discuss the
The relationship between external linkage between external and
and internal audit works is internal audit works discussed for
discussed for the benefit of the benefit of management.
management.
The information for purposes of identify and present relevant
evaluating the relationship information for purposes of
between the scope of internal and evaluating the relationship
external audit work is prepared between the scope of internal and
and presented to management external audit work

Specific Outcome 3
Contrast the increased importance of performance auditing with the stewardship auditing in the local
government
AC1 Clear distinction is drawn In pairs learners to identify the Learners to write a brief
between stewardship auditing and difference between stewardship assignment identifying and
performance auditing is made in and performance auditing explaining the different elements
the different forms of audit and role of stewardship and
reports performance auditing in the
AC2 The role of performance context of municipality’s service
audits in discussed in the context delivery programmes.
of municipality`s service delivery
programmes.

Specific Outcome 4
Identify various steps in the audit process for achieving value for money
AC1 In a plenary learner to share
The value for money report is knowledge of the concept of
prepared in accordance with value for money
sound auditing principles
AC2 Learners to make a motivation in
Demonstration of the benefits of a a form of a short presentation of
value for money report for both a need for value for money report
capital and recurrent expenditure for capital and recurrent
programmes is appropriately expenditure programmes
made to managers or fellow team
members
31
AC3 In groups learners to discuss
The concept of best value and what contribution could
benchmarking is demonstrated in benchmarking and best value
relation to municipal financial concept make in relation to
management. municipal financial management.

Specific Outcome 5
Identify and appraise audit`s unique role in promoting corporate governance, accountability and internal
control
In small groups learners to
The role of internal audit and identify and discuss the roles and
audit committees is explained and responsibilities of internal audit
evaluated in respect of sound and audit committees in respect
municipal financial management of sound municipal financial
governance principles. management governance
principles.
AC2 Individual learners to outline and
The auditor`s role is evaluated in evaluate the roles and
relation to of risk management responsibilities of the auditor
processes of a municipality evaluated in relation to of risk
management processes of a
municipality
AC3 Divide learners in small groups
The concept and practice of and ask them to discuss and
control frameworks are discussed evaluate the concept and practice
and evaluated in so as they of control frameworks in so as
enhance sound financial they enhance sound financial
governance in a municipality governance in a municipality

Specific Outcome 6
Identify and describe stages in performing an audit through to the reporting of findings
AC1 In a plenary learners to share Ask each learner to prepare a
The management process for what they know and understand present the management process
an audit, including allocation of management process for an for an audit; allocations of
of responsibilities and risk- audit, and management process responsibilities and risk-based
based audit plans, is for an audit, audit plan
discussed and presented to
management for
consideration.
AC2 In a plenary learners to recognize

The importance of communication and discuss the significance of
during auditing is discussed with communication during auditing is
management
32
Specific Outcome 7
Explain different forms of audit reports used to report audit findings
AC1 In a short report individual
The process of reporting on audit learners to explain the process of
findings, including reporting reporting on audit findings,
procedures, is explained to including reporting procedures
management

(Skills) (Attitudes
Unit Standard Learners to attend At the end of the At the end of At the end of the
116357 formal lessons programme the programme
Design internal where information learners will know programme learners will
control and internal will be imparted and understand: learners will understand the
control evaluation and which will be able to: importance of:
framework comprise of;
SO1 SO1
Group exercises The full concept of Engage in the Internal control
Individual exercises internal control process of measures
Plenary and The process of policy developing and Adherence to
brainstorming development and implementing an policies
sessions implementation internal control Compliance with
Simulations Internal control policy policy for a the legislation
Scenarios Principles of good South African
Oral presentations government municipality in
the requirements of accordance with
Preparation of the local government the local
report and legislative framework government
assignments legislative
framework and
principles of
good
government
Identify relevant
33
resources and
role-players in
policy making
SO2 SO2
Critical areas of To establish and
internal control identify the
Management critical areas of
philosophy internal control
Organisational within a
procedures and municipal
Operation style environment
through
establishment of
structures for
the creation of a
control
environment and
through
implementation
of organizational
procedures and
operating styles
SO3 SO3
Internal control To identify and
procedures establish internal
The process and control
procedures of procedures that
establishing are in
procedures accordance with
Principles of good principles of
governance good
Municipal legislation governance and
with reference to relevant
internal control municipal
procedures legislation
SO4 SO4
Assessment To identify and
techniques and implement
procedures in terms procedures for
of internal controls the study and
review internal
controls
Specific Outcomes
1. Develop and implement an internal control policy for a South African municipality as required by
the local government legislative framework and principles of good government
2. Develop and identify critical areas of internal control within a municipal government environment.
3. Identify and establish internal control procedures that are in accordance with relevant municipal
legislation and principles of good governance
4. Identify and implement the procedures that should be applied to study and review internal
controls.
34
Critical Outcomes
1. The ability to develop and implement an internal control policy for a south african municipality as
required by the local government legislative framework and principles of good government
2. The ability to develop and identify critical areas of internal control within a municipal government
environment.
3. The ability to identify and establish internal control procedures that are in accordance with relevant
municipal legislation and principles of good governance
4. The ability to identify and implement the procedures that should be applied to study and review
internal controls.

the best possible internal control options.

toward maintaining an effective internal control system.

demonstration of ethical and moral principles in all internal control processes.

internal control options and presenting conclusions.

and/or written persuasion, e.g. through advising and motivating others with regard to internal
control options.

and health of others, e.g. use appropriate computer software for mathematical computation,
data capturing and document storage purposes.

problem-solving contexts do not exist in isolation, e.g. in keeping in mind that internal control
affects the financial well being of not only the municipality but the country as a whole.

effective internal control policies and practices.
35
Design internal control and internal control evaluation framework

Specific Outcome 1
Develop and implement an internal control policy for a South African municipality as required by the local
government legislative framework and principles of good government
Divide learners to work in trios
AC1
and ask them to peruse the
Relevant legislation for the
legislation in order to identify and
establishing of an internal control
interpret the relevant legislation
policy is interpreted in the
for the establishing of an internal
municipal government context.
control policy
AC2 Each learner is assigned to
The concepts and principles identify and explain the concepts
underlying an internal control and principles underlying an
policy are explained in the internal control policy in the
municipal government context municipal government context
AC3 In a plenary learners to describe
Controls are identified in the municipal government
context of a municipal computerized information system
government computerised and identify controls in this
information system context
AC4 Assign each learner to use the
A reporting system is designed requirements of relevant
based on the requirements of legislation and principles of good
relevant legislation and principles governance to design a reporting
of good governance system

Specific Outcome 2
Develop and identify critical areas of internal control within a municipal government environment

AC1 Place learners in groups and ask
Structures for the creation of a them to identify and describe
36
control environment are identified structures for the creation of a
and established in a municipal control environment in a
government environment municipal government
environment
Criteria of a management explain Criteria of a management
philosophy and operating style philosophy and operating style
are implemented appropriate to and explain how they would go
the municipal government about implementing them in the
environment municipal government
Criteria of a management environment
philosophy and operating style
are implemented appropriate to
the municipal government
environment.
AC4 In a plenary discussion learners to
Organisational procedures and identify organizational procedures
operating styles are implemented and operating styles based on
based on relevant legislation and relevant legislation and principles
principles of good governance of good governance and explain
how they would go about
implementing them

Specific Outcome 3

AC1 Identify and establish AC 1,2,3, and 4 AC 1,2,3,and 4
internal control procedures that In a plenary discussion ask Each learner is tasked to outline
are in accordance with relevant learners to identify and Identify and describe’; checking; control
municipal legislation and and establish internal control and approval procedures and
principles of good governance procedures that are in accordance explain what process the would
AC2 with relevant municipal legislation follow in implementing them with
Checking procedures are and principles of good governance relevant municipal legislation and
implemented in accordance with principles of good governance
relevant municipal legislation and
principles of good governance
AC3
Control procedures are
implemented in accordance with
relevant municipal legislation and
principles of good governance
AC4
Approval procedures are
implemented in accordance with
municipal procedures

Specific Outcome 4
Identify and implement the procedures that should be applied to study and review internal controls
37
AC1 In a plenary ask learners to list
Pre-determined standards are and explain the standards that
utilised to evaluate an internal would be utilized to evaluate an
control system in line with internal control system in line with
internationally accepted best internationally accepted best
practice. practice.
AC2 Task each learner to prepare a
A report is prepared on the report on the evaluation of
evaluation of internal control internal control procedures
procedures internal control internal control procedures based
procedures based on inter on inter nationally accepted best
nationally accepted best practice practice. The report should end
AC3 with conclusions and
Recommendations for recommendations for
improvements to internal control improvements to internal control
procedures are made to the procedures
appropriate authorities.
38
(Skills) (Attitudes
Unit Standard Learners to attend At the end of the At the end of At the end of the
116362 formal lessons programme the programme
Manage a where information learners will programme learners will
municipality`s will be imparted understand and learners will understand the
assets and and which will know: be able to: importance of:
liabilities comprise of;
Group exercises SO1 SO1

Individual exercises The benefits of good To advice Good working
Plenary and working relationships municipality on relationships
brainstorming The functionalities of enhancing Compliance with
sessions a Financial positive the legislation
Simulations community relationships Accuracy
Scenarios with the financial Transparency
Oral presentations community by Consulting
outlining the Participatory
Preparation of potential benefit process
report and out of it Contingency
assignments planning
SO2 SO2
Knowledge of To make
banking with preparations and
reference to; system; proposal for
standards and application of
procedures; relevant finance form the
terms and bank
conditions ; bank The ability to
financing principles assess and
analysis of specific analyse the
bank documents; advantages and
disadvantages of
different bank
finance options
such as loans;
39
overdraft etc
SO3 SO3
The concept of hire Take into
purchase transactions consideration
and leasing the merits of
Merits of hire hire purchase
purchase and leasing of
The risk involved with municipal assets
leasing municipal To assess the
assets risk of leasing
The elements of a municipal assets
lease agreement To engage into a
Legislative leasing contract
requirements in and execute
regard to hire necessary
purchase and leasing activities such as
a lease
agreement by
consulting the
relevant role-
players
To comply with
the legislative
requirements in
the process of
leasing
SO4 SO4
The concept of To prepare and
liability with reference develop a sound
to contingent plan for
liabilities in a contingent
municipality municipal
The significance of a liabilities
contingency plan
Knowledge of
contingency plan and
how to develop one
Specific Outcomes
1. Describe and prepare proposals to accessing bank finance
2. Provide advice to a municipality on optimising relationships with the financial community.
3. Consider the merits of hire purchase transactions and leasing of municipal assets
4. Plan for contingent municipal liabilities
Critical Outcomes
1. The ability to describe and prepare proposals to accessing bank finance

2. The ability to provide advice to a municipality on optimising relationships with the financial
40
community.
3. The ability to consider the merits of hire purchase transactions and leasing of municipal assets
4. The ability to plan for contingent municipal liabilities
Essential Embedded Knowledge

General knowledge of the finance sector.
Knowledge of asset management including planning, acquisition, maintenance, disposal and the asset life
cycle

the best possible asset management options.

amongst the public sector as well as private sector stakeholders.

demonstration of ethical and moral principles in all asset management processes.

Collect, analyse, organise and critically evaluate information. For example through researching all
possible asset management options and presenting conclusions.

and/or written persuasion, e.g. through advising and motivating others with regard to asset
management options.

storage purposes.

problem-solving contexts do not exist in isolation, e.g. in keeping in mind that asset
management effects the financial well being of not only the municipality but the country as a
whole.

effective asset and liability management policies and practices.
41
Manage a municipality ‘s assets and liabilities

Specific Outcome 1
Provide advice to a municipality on optimising relationships with the financial community
AC1 in a group discussion learners are Prepare a presentation on the
The benefits of a good tasked to identify and explain the benefits of a good relationship
relationship between the financial main elements of a financial between the financial community
community and the municipality community and the municipality. In the
are explained including all the presentation highlight advantages
advantages and disadvantages of and disadvantages
the relationship
AC2 Divide learners into dyads and ask
The key role-players that them to identify the key role-
contribute to important players and their roles that
relationships in a municipality`s contribute to important
financial community are identified relationships in a municipality`s
and their roles explained financial community
AC3 Assign each learner to identify
Information is selected and information that would be
analysed in terms of a relevant to determine
municipality`s credit worthiness municipality`s credit worthiness
AC4 In small groups ask learners to
A plan is prepared to improve the develop and present a plan which
credit rating of a municipality will augment the long term
which will enhance the long term borrowing capabilities of the
borrowing capabilities of the municipality by improving the
municipality. credit rating of a municipality.

Specific Outcome 2
Describe and prepare proposals to accessing bank finance
AC1 Divide learners into groups.
Bank overdrafts and bank term Provide the terms and conditions
loans are compared and a of bank overdrafts and short and
presentation made identifying the long-term loans and ask each
benefits and disadvantages of group to decide on one by
each weighing the advantages against
the disadvantages.
AC2 To recognise and explain the
The credit limits the municipality internationally recognised
42
should apply for considering methods of calculating credit
prevailing financial and economic limits for considering prevailing
conditions are calculated using financial and economic conditions
internationally recognised
methods
AC3 Each learner is tasked to present
Applications for credit from more a motivation why applying for
than one financial institution are credit from more than one
prepared, including motivations financial institution and to
for extending credit demonstrate that they have
AC4 In a plenary learners to explore evaluated the pros and cons of
Term structure of interest rate the concept of term structure of borrowing from different
is described including the interest rate institution and the implications in
reasons for the term terms of interest rates
structure.
AC5 Ask learners to outline and

Information on maturity structure describe the debt management
of municipal debt is compiled and process and what relevant
analysed to inform the debt information should be compiled
management process on maturity structure of municipal
debt to inform the above process.

Specific Outcome 3
Consider the merits of hire purchase transactions and leasing of municipal assets
AC1 In a plenary learners to share AC1 AC3
Approaches to hire purchase their knowledge and Learner are asked to
transactions for a municipality are understanding of hire purchase recognize and discuss the
presented and an explanation and leasing transactions advantages and risks of hire
given of their appropriateness for purchase transactions and
a municipality. leasing transaction for a
AC2 Give a scenario: and divide municipality
Municipal assets suitable for learners into small groups and ask
purchase and use through a them to draft a hire purchase
leasing agreement are lease agreement based on the
identified and a motivation scenario. The groups to present
given for their acquisition their different agreements to the
through leasing. entire group. I their preparation
learners to refer to the legislative
requirements of the two
AC3 agreements ensure compliance
The risks associated with leasing with the legislation
municipal assets are identified
and explained so that decisions
can be made on the feasibility of
a planned lease arrangement
AC4
A lease agreement and hire
purchase agreement are
developed, presented and
motivated to management
43
AC5
Legislative requirements for
borrowing are considered and
applied in lease agreement
evaluation

Specific Outcome 4
Plan for contingent municipal liabilities

AC1 In a plenary learners to express Using a fiscal risk matrix ask
Contingent liabilities facing a their understanding of the learners to identify and classify
municipality are identified and concept of contingent liability contingent liabilities facing a
classified according to a fiscal risk municipality with reference to the
matrix. specific municipalities
AC2 Based on the findings of the
The probable financial above analysis; please estimate
implications of a municipality`s the probable financial implications
contingent liabilities are estimated of a municipality`s contingent
and a motivation given for liabilities and draft a motivation
funding arrangements for the for funding arrangements
contingent liabilities
Changes to policies are the impact that changes in
recommended to limit the policies would have in limiting the
financial implications of financial implications of
contingent liabilities contingent liabilities

Specific Outcome 5
Develop a municipal asset management plan
AC1 In a plenary learners to identify Each learner to design a
A project is developed to update and discuss the significance of a project that would ensure
and prepare an accurate municipality asset register and absolute accuracy in a municipal
municipal asset register who should be responsible and asset register
accountable for it
AC2 In the workbooks learners to
Information is compiled so that an describe how the process of asset
assessment can be conducted of performance is carried out and
asset performance its significance in assets
AC3 management in a municipality
Current asset performance is
analysed and interpreted against
planned performance to ensure
44
proper utilisation of assets.
Principles are identified for identify and explain accounting
managing assets using recognised practices that would be
accounting practices appropriate in recognizing
AC5 principles for managing assets
An asset’s performance is
analysed and interpreted to
validate quality of inputs,
processes, and outputs against
recognised standards
AC6 Simulation
Changes to an existing moveable Divide learners into groups. Hand
asset policy are identified and out a moveable asset policy
supported by sound risk (dummy) to groups with
management principles contradicting clauses and
information. Ask learners to
amend and comment on any
information which does not add
up. The groups to give oral
presentations on their findings
and amendments. Ask them to
comment on the sound risk
management principles that could
be used in this regard
AC7 Each learners is asked to identify
Legislative requirement are the legislative requirements in
identified relating to the relation to
acquisition and disposal of assets acquisition and disposal of assets
45
Activities
The learning and teaching activities from the assessment tasks. A month prior to programme
commencement, learners will be pre-assessment or skills audited
At the beginning of the programme learners:
1. Are registered with each learner completing personal profile questionnaire; which will also seek to
understand whether the learner has any learning challenges, such as language, audio visuals etc
2. Are taken through course structure and content; relevant unit standards
3. Assessment strategy and appeal procedure, which is signed and filed away
ACTIVITY RESOURCES AND MATERIALS REQUIREMENTS

1. facilitated input on: The learning manual
Risk management Facilitator
Accounting Visual materials
Audit planning PowerPoint slides
Portfolio of Evidence guide
Assessor guide
Take home assignments
Group discussions Instructions for group discussions and Flip charts

Scenario and cocki pens
Dyads Standardised scenario
Workbooks Guidelines for dyads
Assignments Individual workbooks
Plenary discussions Individual assignments
Brainstorming Different view on the floor
Knowledge testing
Please Note: all Formative assignment to complied in POE
46

Municipal Accounting

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LERANING PROGRAMME 2

TITLE OF THE PROGRAMME: Municipal accounting and risk management

TITLE OF THE LEARNING PROGRAMME

MUNICIPAL ACCOUNTING AND RISK MANAGEMENT

What are Develop a

Accepted risk Outline the risk

1. Identify the role played by risk management in a municipality

1. The ability to identify the role played by risk management in a municipality

Essential Embedded knowledge

Critical Cross-field Outcomes (CCFO):

UNIT STANDARD CCFO WORKING

UNIT STANDARD CCFO ORGANISING

UNIT STANDARD CCFO COLLECTING

UNIT STANDARD CCFO COMMUNICATING

UNIT STANDARD CCFO SCIENCE

UNIT STANDARD CCFO DEMONSTRATING

UNIT STANDARD CCFO CONTRIBUTING

Unit standard 116339

Assessment criteria List of Formative List of Summative

Unit standard 116339

Unit standard 116339

Assessment criteria List of Formative List of Summative

AC2 Assign each learner to formulate

Unit standard 116339

Assessment criteria List of Formative Assessment List of Summative

Unit standard 116339

UNIT STANDARD 116346

Unit standard critical Outcomes

Unit standard specific Outcomes

Unit standard Essential Embedded knowledge

Critical cross-field Outcomes

UNIT STANDARD CCFO IDENTIFYING

UNIT STANDARD CCFO WORKING

UNIT STANDARD CCFO ORGANISING

UNIT STANDARD CCFO COLLECTING

UNIT STANDARD CCFO COMMUNICATING

UNIT STANDARD CCFO SCIENCE

UNIT STANDARD CCFO DEMONSTRATING

UNIT STANDARD CCFO CONTRIBUTING

Unit standard 116346

Assessment criteria List of Formative Assessment List of Summative

Unit standard 116346

Assessment criteria List of Formative Assessment List of Summative

AC2 Place learners in small groups,

Unit standard 116346

Unit standard 116346

AC2 Each learner to identify and

Unit standard 116346

UNIT STANDARD 119348

1. Explain and apply the conceptual framework underlying GRAP

Essential Embedded knowledge

Critical cross-field Outcomes

UNIT STANDARD CCFO IDENTIFYING

UNIT STANDARD CCFO WORKING

UNIT STANDARD CCFO ORGANISING

UNIT STANDARD CCFO COLLECTING

UNIT STANDARD CCFO SCIENCE

UNIT STANDARD CCFO DEMONSTRATING

UNIT STANDARD CCFO CONTRIBUTING