SMS Competency - Financial Management

This is one of eleven competences that appear in the SMS Competency Framework for senior managers in South Africa's Public Service. All these competences are viewed as being critical for high performance in the senior manager’s role. The eleven competences are:

1. Strategic Capability and Leadership;
2. Programme and Project Management;
3. Financial Management;
4. Change Management;
5. Knowledge Management;
6. Service Delivery Innovation;
7. Problem Solving and Analysis;
8. People Management and Empowerment;
9. Client Orientation and Customer Focus;
10. Communication;
11. Honesty and Integrity;

Competency definition

Must be able to compile and manage budgets, control cash flow, institute risk management and administer tender procurement processes in accordance with generally recognised financial practices in order to ensure the achievement of strategic organisational objectives

Proficiency level

Basic

• Articulates basic financial concepts and techniques as they relate to organisational/departmental processes and tasks (e.g. performance budgeting and value for money);
• Displays awareness of the different sources of financial data, reporting mechanisms and financial processes and systems;
• Understands importance of financial accountability;
• Understands the necessity for asset control;
• Recognises key expenditure and financial accounting and reporting concepts;
• Performs key financial management processes (expenditure, accounting and reporting) with guidance/direction;
• Tracks and measures actual expenditure against budget; and
• Understands the role of an audit function.

Competent

• Demonstrates knowledge of general concepts of financial planning, budgeting and forecasting and how they interrelate;
• Assesses, manages and monitors financial risks;
• Continuously looks for new opportunities to obtain and save funds;
• Prepares financial reports based on prescribed format;
• Understands and weighs up financial implications of propositions;
• Controls assets according to prescribed policies and procedures;
• Understands, analyses and monitors financial reports;
• Allocates resources to established goals and objectives;
• Manages expenditure in relation to cash flow projections;
• Ensures effective utilisation of financial resources;
• Develops corrective measures/actions to ensure alignment of budget to financial resources;
• Prepares and manages own budget in line with the strategic objectives of the organisation; and
• Makes realistic projections in routine reports.

Advanced

• Takes ownership of key planning, budgeting and forecasting processes and answers questions related to topics within own responsibility;
• Manages financial planning, forecasting and reporting processes;
• Prepares budgets that are aligned to the strategic objectives of the organisation\department;
• Addresses complex budgeting and financial management issues;
• Formulates long term financial plans and resource allocations;
• Develops and implements systems, procedures and processes in order to improve financial management;
• Advises on policies and procedures regarding asset control;
• Dynamically allocates resources according to internal and external objectives (broader government objectives);
• Develops expenditure Key Performance Indicators (KPIs);
• Succeeds in achieving maximum results with limited resources;
• Assists others with financial accounting\reporting tasks;
• Coaches and teaches others on key financial concepts; and
• Analyses projections in reports.

Expert

• Develops planning tools that assist with evaluating and monitoring future expenditure trends;
• Sets budgeting guidelines for the department/organisation;
• Recognised internally and externally as a financial expert;
• Sets strategic direction for the organisation/department in relation to expenditure and other financial processes;
• Identifies and implements partnerships and explores other avenues to achieve financial savings and improved service delivery;
• Identifies and implement new techniques to improve asset control;
• Evaluates financial impact of strategic decisions across the organisation;
• Develops long-term plans, performance measures and budgets that are aligned with strategic objectives; and
• Possesses in-depth financial acumen and understanding and runs the finances according to sound principles.

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Copyright RSA Department of Public Service and Administration: SMS Handbook - Chapter 5: Competency Framework (2003).

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External Links

Department of Public Service and Administration (DPSA), Republic of South Africa