Minimum Competency Levels Regulations Exemption notice implications CFO

Minimum Competency Levels Regulations - Exemption notice implications CFO Forum 20 July 2017

Background • Gazette 37432 of 14 March 2014 - 1 st exemption giving legal effect to MFMA circular 60 expired 30 Sept 2015. • Gazette 40593 of 3 Feb 2017 - recent exemption • This mean that the regulations were enforceable from 01 October 2015 to 01 February 2017. • The implication is that existing affected employees in a municipality should have been compliant and those appointed should have been compliant 10/30/2021 2

Implications • If the municipality had non compliant employees during that period, the total employee full benefits is irregular • CFO office should quantify the irregular expenditure and compile a report to council before the end of June 2017. • The irregular expenditure for 2016/17 is for 8 months non-compliance (1 July 2016 – 2 Feb 2017) • The irregular expenditure for 2015/16 is for 9 months non-compliance (1 October 2015 – 30 June 2016) • Actions to be taken • Step 1 – identification. The annexure A report will be useful in checking which affected officials are not meeting the requirements. • Step 2 - recording the register and reporting to council. • Step 3 – Section 32 of the MFMA (investigation by council committee) • Step 4 – Discloser in AFS 10/30/2021 3

Annexure A - MFMA Exemption Notice Reporting Template

MCR Exemption Notice Reporting • The reporting requirements for 2. 5 (a) and (b) in the exemption conditions have been provided for through “Annexure A - MFMA Exemption Notice Reporting Template”. • It should be completed in full and should be submitted to National Treasury on / before the 07 th of each month (on the first week of each month). • Things to take note of when completing the template: • • It should not be altered, It should be completed in full, ensure that there are no spaces in between officials, All officials should have ID/passport numbers 10/30/2021 5

Annexure A 10/30/2021 6

Submission status • Twelve municipalities submitted Annexure A – Namakwa – Richtersveld – Karoo Hoogland – Ubuntu – Kareeberg – Siyathemba – Dawid Kruiper – Kai Garib – Kheis – Kgatelopele – Frances Baard – Joe Morolong • Eighteen reports are outstanding (60%) 10/30/2021 7

Submission status • Exemption Notice focuses on the completion of the required unit standards, but the reporting template(Annexure A) is still used to report on the status of Minimum Competency Levels in the municipalities • All municipalities are expected to report on the status of Minimum Competency Levels on all officials affected by regulations • Option 1 – If all officials in the municipality meet the 4 criteria - the municipality is expected to submit the Annexure A once off until there is a new official in the municipality or until instructed otherwise. • Option 2 – If only a few officials do not meet the 4 criteria - the municipality is expected to update the information of the non-compliant officials as it changes and report monthly. 10/30/2021 8

THANK YOU 10/30/2021 9