JOHANNESBURG - The South African Institute of Chartered Accountants (SAICA) has pointed to a lack of appropriate competencies by chief financial officers as one of the reasons for continued poor financial management of South African municipalities.
This as the National Treasury minimum competency levels database from September 2018 shows that Gauteng was the province with the least percentage of CFOs meeting minimum competency at 12 percent.
The database shows that out of a total of 257 municipalities with 218 CFOs across the country, only 79 CFOs were meeting minimum competency, a low level of 36.2 percent.
The Municipal Finance Management Act (MFMA) and the Public Finance Management Act (PFMA) require that the CFO be responsible for the effective financial management of the institution.
This includes the exercise of sound budgeting and budgetary control practices, the operation of internal controls and the timely production of financial reports.