Mr Oliver Seale SCOPA Meeting Wednesday, 29 August 2007

1. Mr Oliver Seale SCOPA Meeting Wednesday, 29 August 2007 Building capacity for effective financial management in the public service

2. Transformation to the AcademySAMDI: Need for a paradigm shift • R1 billion p/a spent in departments but 43% of staff in provincial departments reported no training in 2006. • International benchmarks suggest at least 5 days training per annum: • For approx. 250,000 middle and junior managers requires 1,25 million PTDs p.a.; • Allowing for 60% of training already occurring in departments still requires 0,5 million PTDs p.a. • For induction, staff turn-over is 120 000 people p.a. requiring another 0,2 million PTDs. • Thus, the total-demand driven requirement is 0,7 million PTDs: nearly 10 times SAMDI’s present output!

3. Transformation to the Academy Vision and activities • Three “mantras” • Provision to facilitation. • Competition to collaboration. • Selective coverage to massification. • First main stream of activity • Executive development programmes for SMS. • Entrant, lower and upper SMS: programmes, courses and events. • In collaboration with universities and counterparts. • Second main stream of activity • “Massified” management training for junior and middle managers. • Training frameworks of curriculum and materials in conjunction with provincial academies and DPLG; • Monitoring and Evaluation to regulate providers; • The induction programme for new entrants at all levels.

4. Capacity building for financial management Background • SAMDI and National Treasury established a partnership to address the capacity challenges in public financial management. • SAMDI and National Treasury identified a suite of ten courses that address training needs in following areas: • Financial management for non-financial managers • Public sector accounting • Internal audit and control • Risk management • Asset management • Revenue management • Expenditure management • Report writing • SAMDI and National Treasury selected various service providers to offer the above courses in national and provincial departments.

5. Capacity building for financial management Implementation strategy • National Treasury assisted SAMDI with the rollout strategy and setting up of a finance and project management training unit. • Project Team and Steering Committee established comprising SAMDI, National Treasury and providers • Service Level Agreements signed with service providers including: University of Pretoria, Regenesys, Fort Hare University and Public Finance iQ. • Training schedule and marketing plan developed for the current financial year in conjunction with service providers. • Rollout took place in July, delay due to new marketing approach and industrial action. • SAMDI and National Treasury DGs have communicated with departments on this FMT programme. • National Treasury has provided additional financial support to incentivise participation by national and provincial departments.

6. Capacity building for financial managementJIPSA-ASGISA projects • Training of CFOs and finance managers in municipalities supported by Liberty Life • Roleplayers - Deputy President’s Office, SAMDI, National Treasury DPLG, Auditor General’s Office, Local Government Leadership Academy, Local Government SETA • Programme components - Finance training (e.g. Risk Management, Internal Audit), Leadership and management training, Coaching and mentoring, Focused finance team training, Institutional strategic and operational support • Steering committee has been established facilitated by SAMDI • Internal audit training and assistance supported by Old Mutual’s ILIMA Trust

7. Siyabonga Thank you Rolivhuwa Dankie Nakhensa Re a leboga