SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Prepare a budget for use in public sector entity/department/section 
SAQA US ID UNIT STANDARD TITLE
377900  Prepare a budget for use in public sector entity/department/section 
ORIGINATOR
Task Team - Public Sector 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  NQF Level 05  15 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard does not replace any other unit standard and is not replaced by any other unit standard. 

PURPOSE OF THE UNIT STANDARD 
The Unit Standard is intended for practitioners in a range of government departments and public sector institutions at national and provincial level. Practitioners will include, budget analysts, decision makers and advisors as well as senior managers and operational managers required to implement budgeting and financial management systems. This unit standard will enable learners to prepare a budget for the Public Sector.

A learner credited with this unit standard will be able to:
  • Demonstrate understanding of the South African legislative framework for budgeting processes within the public sector.
  • Evaluate budget formats and approaches to budgeting.
  • Link strategic planning and priorities with budgetary preparation processes.
  • Prepare and present motivation for budget requests.
  • Prepare budget based on approved allocations. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
  • Computer Literacy at NQF Level 4 or equivalent.
  • Mathematical Literacy at NQF Level 4 or equivalent.
  • Communication at NQF Level 4 or equivalent.
  • Basic accounting principles and practices in specific relation to budget monitoring and analysis. 
    		•

    UNIT STANDARD RANGE 
  • Principles of Public Expenditure Management include:
    > Allocative Efficiency, Fiscal Discipline and Operational Efficiency.
  • The components of the budgeting system include the processes of:
    > Planning, Budgeting, Implementation, Monitoring and Evaluation.
  • The Key Stages in the budgeting process include:
    > Policy Prioritisation, Applying Fiscal Discipline, Financial Planning, Drawing up the budget document, Implementing the budget and Financial Management.
  • The Relevant Legislation includes:
    > The 1996 Constitution, The Public Finance Management Act and Public Service regulations.
  • Budget Formats include:
    > Line Items budgets, Programme Budget formats and Performance related budget formats.
  • Other Budgeting Terms include:
    > Strategic outcomes, Outputs, Activities, Inputs and Measurable Performance Objectives.
  • Approaches to Budgeting include:
    > Incremental Budgeting, Zero based budgeting, Programme Budgeting and Performance Budgeting. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Demonstrate understanding of the South African legislative framework for budgeting processes within the public sector. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Budgetary concepts are explained with examples. 
    ASSESSMENT CRITERION RANGE 
    Budgetary concepts include: base budget, standing (statutory) appropriations, capital budget, outputs, inputs, revenue funds, adjustment estimates, etc.
     

    ASSESSMENT CRITERION 2 
    The role of a budget and role players involved in the budgeting process in a public sector entity/department/section is explained with examples.

    Role and different uses will include:
  • Political oversight.
  • Management tool.
  • Instrument of accountability.
  • Public participation.
  • Service delivery requirements.
  • Signalling policy priorities of government. 
    		•

    ASSESSMENT CRITERION 3 
    The principles of budgeting are explained in terms of their application. 

    ASSESSMENT CRITERION 4 
    Principles of budgeting include fiscal discipline, allocative efficiency and operational efficiency. 

    ASSESSMENT CRITERION 5 
    The components of a budget within a specific sector are explained as required by legislation. 
    ASSESSMENT CRITERION RANGE 
    Components include but are not limited to:
  • Revenue.
  • Expenditure.
  • Transfers and subsidies.
     
    		•

    SPECIFIC OUTCOME 2 
    Evaluate budget formats and approaches to budgeting. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    A range of budget formats are differentiated in terms of their application in specific sectors. 

    ASSESSMENT CRITERION 2 
    Budgets formats are evaluated in terms of their advantages and disadvantages. 

    ASSESSMENT CRITERION 3 
    Different approaches to preparing budgets are differentiated in terms of their functions and roles. 

    ASSESSMENT CRITERION 4 
    Advantages and disadvantages of each of the approaches are explained with examples. 

    SPECIFIC OUTCOME 3 
    Link strategic planning and priorities with budgetary preparation processes. 
    OUTCOME RANGE 
    A budget will include an institutional budget, programme budget or project budget. A budget will include annual revenue and expenditure estimates. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Data is accessed according to budgetary requirements and plan of action. 

    ASSESSMENT CRITERION 2 
    Information for a budget is compiled utilising policy, strategic and operational plans. 
    ASSESSMENT CRITERION RANGE 
    Information includes objectives, activities, inputs, resources, measures and targets.
     

    ASSESSMENT CRITERION 3 
    Data required for budget preparation is analysed in terms of suitability, accuracy, verification and comparability of data sources. 
    ASSESSMENT CRITERION RANGE 
  • Includes cost information, in line with budget allocations and information from previous year's budget.
  • Analysis includes baseline assessment for calculating averages, percentage changes, and trends.
     
    		•

    ASSESSMENT CRITERION 4 
    Circulars and memoranda are interpreted and analysed in terms of budgetary implications and requirements. 

    ASSESSMENT CRITERION 5 
    Classification of budget data is conducted using relevant tools. 

    SPECIFIC OUTCOME 4 
    Prepare and present motivation for budget requests. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    An annual budget is estimated utilising appropriate approaches. 

    ASSESSMENT CRITERION 2 
    An annual budget is presented in line with prescribed formats. 

    ASSESSMENT CRITERION 3 
    Estimates of cash are calculated for each month of the financial year. 

    ASSESSMENT CRITERION 4 
    Reconciliations are conducted between annual budget estimates and cash flow estimates. 

    ASSESSMENT CRITERION 5 
    Recipients of budgetary requests are identified and explained in terms of their role and motivation. 

    ASSESSMENT CRITERION 6 
    Budgetary request motivations are prepared in line with guidelines and directed to appropriate stakeholders. 

    ASSESSMENT CRITERION 7 
    Motivations are presented to appropriate individuals. 
    ASSESSMENT CRITERION RANGE 
    Presentation involve using various tools such as MS PowerPoint and flipcharts such as MTEC Hearing, benchmark, bilateral, etc.
     

    SPECIFIC OUTCOME 5 
    Prepare a budget based on approved allocations. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Notification of budgetary request is prepared and communicated to role players. 
    ASSESSMENT CRITERION RANGE 
    Includes preparing internal letters and memoranda informing colleagues about approved allocations.
     

    ASSESSMENT CRITERION 2 
    Actions and steps are conducted to finalise budget allocation. 
    ASSESSMENT CRITERION RANGE 
    Actions in this case might include, but are not limited to:
  • Revision of annual performance plans.
  • Amend and adjust budgets for certain inputs.
     
    		•

    ASSESSMENT CRITERION 3 
    A budget is prepared and finalised in accordance with legislative prescripts and regulation. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    An individual wishing to be assessed (including through Recognition of Prior Learning) against this Unit Standard may apply to an assessment agency, assessor or provider institution accredited by the relevant ETQA, or an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Anyone assessing a learner against this Unit Standard must be registered as an assessor with the relevant ETQA or with an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard or assessing this Unit Standard must be accredited as a provider with the relevant ETQA or with an ETQA that has a Memorandum of Understanding with the relevant ETQA.
  • Moderation of assessment will be conducted by the relevant ETQA at its discretion. 
    		•

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    Purpose of processes and procedures of:
  • Macroeconomic framework.
  • Budget reform programme.
  • Economic reporting format (ERF).
  • Budget process and key role players.
  • National Treasury role.

    Cause and effect, implications and attributes of:
  • Inconsistent utilisation of budget formats and planning framework.
  • Procedures, techniques and Concepts.
  • Basic concepts of budgeting.
  • Planning framework.
  • Programme for managing performance information.
  • Budget formats.
    > Regulations, legislation, agreements and policies.
  • Constitution.
  • Public Finance Management Act.
  • National Treasury Regulations and Practice Notes.
  • Reference guide to the Economic Reporting Format (ERF).
  • Annual Financial Statement Preparation Guide.
  • SCOA classification circulars.

    Theory - rules, laws, principles:
  • Principles of budgeting.

    Relationships and systems:
  • Spheres of government.
  • Intergovernmental relations (Intergovernmental financial and fiscal relations).
  • Division of nationally raised revenue.
  • Government planning, budgeting and reporting systems.
  • How ERF translates into budget documentation. 
    		•

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    Identifying and solving problems in which responses display that responsible decisions using critical and creative thinking have been made by:
  • Trying to find creative solutions to improve the efficiency and effectiveness of all role-players in the budgeting and reporting cycle. 
    		•

    UNIT STANDARD CCFO WORKING 
    Working effectively with others as a member of a team, group, organisation, and community through:
  • Communicating with by fostering team commitment amongst all role-players in the budgeting and reporting cycle. 
    		•

    UNIT STANDARD CCFO ORGANISING 
    Organising and managing oneself and one's activities responsibly and effectively through:
  • The demonstration of a high quality of output of one's own responsibilities in terms of budgeting and reporting. 
    		•

    UNIT STANDARD CCFO COLLECTING 
    Collecting, analysing, organising and critically evaluating information through:
  • Assuring that all relevant information is included in the relevant budget and reporting documents. 
    		•

    UNIT STANDARD CCFO COMMUNICATING 
    Communicating effectively using visual, mathematical and/or language skills in the modes of oral and/or written persuasion through:
  • Assuring that all information is communicated to the appropriate role-players and team members. 
    		•

    UNIT STANDARD CCFO SCIENCE 
    Using science, technology and indigenous knowledge effectively and critically, showing responsibility towards the environment and health of others through:
  • Use appropriate computer software for data capturing and document storage purposes. 
    		•

    UNIT STANDARD CCFO DEMONSTRATING 
    Demonstrating an understanding of the world as a set of related systems by recognising that problem-solving contexts do not exist in isolation when:
  • Keeping in mind that an budget cycle effects the lives of individuals, the community and the country as a whole. 
    		•

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    N/A 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  67460   National Diploma: Public Administration  Level 6  NQF Level 06  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  As per Learning Programmes recorded against this Qual 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    NONE 


    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.