Facilitator Guide1

2016
APPLY COSTING PRINCIPLES TO MUNICIPAL OPERATIONAL AND

SERVICE-BASED COSTING
UNIT STANDARD: 116340
NQF LEVEL: 6
CREDITS: 11
NOTIONAL HOURS: 110
FACILITATOR GUIDE
NameContact AddressTelephone (H)Telephone (W)FacsimileCellularE-mail
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Table of Contents
About the Programme Structure....................................................................................3
1.1 The Programme Pack.........................................................................................3
1.2 Target group / Occupational link..............................................................................3
1.3 Entry requirements...................................................................................................3
2. About Assessment..................................................................................................7
2.1 Learning Activities...............................................................................................7
2.2 Assessment Instrument.......................................................................................7
2.3 Fundamentals Assessment - CAT......................................................................7
Appeals & Disputes........................................................................................................8
3. About Delivery.........................................................................................................9
3.1 Notional Hours.......................................................................................................10
3.2 Facilitator Credentials.......................................................................................10
3.3 Facilitator Conduct............................................................................................10
3.4 Learner Support................................................................................................11
3.5 Standard Administration....................................................................................11
4. Administration.......................................................................................................12
4.1 Learner Administration......................................................................................12
4.2 Facilitator Administration...................................................................................12
4.3 Facilitator Report....................................................................................................12
4.4 Attendance Register..............................................................................................15
GUIDELINES FOR FACILITATORS............................................................................17
COMPETENCIES FOR FACILITATORS.....................................................................19
FEEDBACK SKILLS FOR FACILITATORS.................................................................20
PREPARING FOR THE SESSION..............................................................................24
Facilitator’s Checklist...................................................................................................27
Lesson plan..................................................................................................................28
Unit standard................................................................................................................54
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About the Programme Structure
This section will orientate the Facilitator on what to expect for the overall unit standard and per
Learning Unit.
1.1 The Programme Pack

The Programme Pack for unit standard 116340 Apply costing principles to municipal operational
and service-based costing contains the following documents for the Unit standard:
Programme Masters:
 Learner Manual
 Facilitator Manual
 Formative Assessment
 Summative Assessment
 Assessor Guide
 Moderator guide
 Unit Standard guide
 Alignment Matrix
1.2 Target group / Occupational link

This Unit Standard is intended for practitioners in local government who are involved in
decision-making processes at operational, management and political levels.
The qualifying learner will be able to:
 Use relevant cost information in all areas of decision-making within local government.
 To determine the economic cost of the services in order to make informed decisions
about service delivery.
 To analyse the apportionment of overheads in trying to determine the full costs of
providing services.
 To decide on the efficiency of service provision by examining and comparing costs
between services and service providers.
 To advise on service agreements between departments in order to improve the costing
system of the municipality.
1.3 Entry requirements

It is assumed that Learners are competent in:
 Communication at Level 4.
 Mathematical Literacy at Level 4.
 Economics at Level 4
Facilitators Note:
The following Assessment Criterions are covered per specific outcome.
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Specific Outcome 1: Compile and interpret a unit cost statement and apply
the results in a decision-making process.
 The unit costing approach to service delivery is explained in a municipal

service delivery context.
 The service measurement unit is identified in a municipal service delivery
context.
 The relationship between total cost of and unit cost is discussed in terms
of service provision.
 The method of unit costing is evaluated within the decision-making
context.
 The importance of using marginal costs is explained as part of the
decision-making process.
 A unit cost statement is compiled in relation to a specific decision
problem.
 Decisions relating to cost-efficiency and value for money are made on the
basis of the unit cost statement.
Specific Outcome 2: Identify the strengths and weaknesses of recognised

approaches to efficiency comparisons
 The concept of efficiency is interpreted within the framework of service

delivery in municipalities.
 Efficiency indicators are identified and listed for appropriate use in a
municipal context.
 The importance of benchmarking is identified and explained within a
municipal context.
 A cost effectiveness approach is used to evaluate different options of
service delivery.
 Benchmarking methods are critically discussed in terms of their
strengths and weaknesses for process in a municipal service provision
context.
 The cost effectiveness analysis is evaluated in terms of its strengths
and weaknesses for process in a municipal service provision context.
 The use of a cost benefit analysis in evaluating social efficiency and
effectiveness of service delivery is appraised in terms of its viability in
a municipal provision context.
 Efficiency indicators and performance management are compared in
terms of the links between the two.
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Specific Outcome 3: Apportion overhead costs efficiently in a municipal
specific context.
 The importance of apportioning overhead costs to a specific service is

commented on in relation to the decision-making context.
 The allocation bases are commented on in terms of apportioning
service overheads.
 Types of overhead costs are identified in relation to delivering a
specific service.
 The most appropriate allocation base for the overhead cost is
determined in line with sound costing principles and management
information policy.
 The basis is calculated for an overhead recovery rate.
 A calculated overhead recovery rate of a municipal service is
interpreted to facilitate decision-making.
 The use of Service Level Agreements to solve the problem of costing
in support and administrative service sections of a municipality is
explained using examples where the situation was improved by the
practice.
Specific Outcome 4: Recognise the importance of classifying costs by

behaviour.
 Cost behaviour is recognised within a local government context.

 Cost drivers are identified for each specific municipal service.
 Cost drivers are classified according to their effects on different costs
categories
 A distinction is made among various types of costs in the municipal
organisation.
 Costs are classified by their behaviour in line with sound costing principles
and management information policy.
 The relationship between cost drivers and municipal service levels is
indicated within a municipal context.
 The behaviour of costs and their related cost drivers is interpreted in
making decisions on service levels.
Specific Outcome 5: Identify difficulties of classifying costs by behaviour in a

municipal financial management system
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 The relationship between the budgeting format and the costing system is
explained within a municipal context.
 The differences between budget control and cost control are discussed for
a municipal service delivery process.
 The cost control approaches are applied in municipal expenditure
management.
 Classifying costs by behaviour in a municipal financial management
system are explained in terms of the difficulties of using this approach.
 Changes to the financial management and budgeting system are
recommended in line with supporting effective cost classification for a
municipality organisation
Specific Outcome 6: Understand the benefits and limitations of classifying

costs by relevance to the decision consideration.
 Cost information for the decision-making in a municipality is analysed in

terms of the value it provides.
 The benefits of cost classification for a specific decision are identified
using a costing matrix.
 The relationship between the purpose of decision-making and cost
behaviour is discussed with specific reference to municipality operational
circumstances.
 Cost classification for decision-making are commented on in terms of the
limitations they have for municipal financial management.
2. About Assessment
Portfolio Activity:
Please refer to the overall Assessment Strategy and respective Learning
Units’ Portfolio Guides for details on assessment.
2.1 Learning Activities
In each Learner Guide, several activities are spaced within the content to assist the learner in
understanding the material through application. Please make sure that you review the activities
in preparation for facilitation, and make sure you advise learners that ALL activities in the
Learner Guide must be completed, whether it was done in the contact session, or not!
2.2 Assessment Instrument
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Facilitators Note:
It is a SETA requirement that a FSA (Final Summative Assessment) and
FFA (Final Formative Assessment) is conducted on each of the exit level
outcomes per Learning Unit, as well as on the overall qualification at the
end of the learning and assessment period. The candidate will therefore
be required to write (6) FFA assessments and 1 practical tasks in the form
of a Test / Examination and 6 Summative tasks
Candidates are therefore required to complete the following summative assessment activities
per Learning Unit:
 Portfolio of Evidence
 FSA (Final Summative Assessment )
The Portfolios of Evidence will contain a variety of tasks and activities that are applicable to
each Learning Unit. The assessment activities are standard across all the Learning Units:
2.3 Fundamentals Assessment - CAT
Facilitators Note:
The unit standard is intended to equip candidate with the necessary skills
to perform and to allow learners to be assessors so that they can assist in
the advancement of education in South Africa with professionalism and
confidence.
It is acknowledged that many of the candidates will have come from

different backgrounds and with different scholastic achievements already
in place – it is therefore appropriate that prior scholastic qualifications be
recognised.
CAT
CAT is the acronym for “Credit Accumulation Transfer”, and is based in a

model developed by SAQA that will be used to determine whether CAT (Credit
Award Transfer) will be implemented to recognise school / FET qualifications
and sector qualifications.
The following is the model proposed by SAQA:
National Qualification Literacy / Numeracy / 2nd

Communication Mathematics Language
Level 3 Level 4 Level 3 Level 4
Grade 12 with Mathematics Yes Yes Yes Yes Yes
Grade 12 without Mathematics Yes Yes No No Yes
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Grade 11 with Mathematics Yes No Yes No Yes
Grade 11 without Mathematics Yes No No No Yes
Grade 10 with Mathematics No No No No No
Grade 10 without Mathematics No No No No No
Grade 9 No No No No No
Tip:
Learners will therefore be able to receive credits towards all or portions of
the fundamental unit standards, depending on the scholastic match they
have to the proposed model above.
Appeals & Disputes

The candidate has the right to appeal against assessment decision or practice they regard as
unfair. An Appeals and Disputes procedure is in place and communicated to all assessment
candidates in order for them to appeal on the basis of:
• Unfair assessment
• Invalid assessment
• Unreliable assessment
• Unethical practices
• Inadequate expertise and experience of the assessor
Appeals have to be lodged in writing (Candidate Appeal Form) & submitted to the Training
Provider internal moderator within 48 hours, following the assessment in question. The
moderator will consider the appeal & make a decision regarding the granting of a re-
assessment. The learner will be informed about the appeal-outcome within 3 days of lodging the
appeal. Should the learner not be satisfied with the internal appeal outcome, the learner will be
advised of the rights to refer the matter to the Services SETA ETQA.
3. About Delivery
The quality management system of each individual provider will govern the roll out and
implementation of this facilitated learning programme,
However, there are some requirements that are standard across all providers:
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3.1 Notional Hours
The roll out strategy below indicates the relationship between theory, practical,
workplace and FSA component:
Learning Unit Credits Notional Days Contact Session Experiential TOTAL
Hours 30% Learning
70%
Theory Practical WPE Ass
Apply costing 11 110 4 17hrs 16 hrs 39 hrs 38 hrs 110 hrs

principles to
municipal
operational
and service-
based
costing
TOTALS
3.2 Facilitator Credentials
In order to facilitate / present this learning programme or portions thereof, the Facilitator must
show Subject Matter Expertise in the following:
Learning Unit Compile and interpret a unit cost statement and apply the results
(Specific Outcome 1) in a decision-making process.
Learning Unit Identify the strengths and weaknesses of recognised
(Specific Outcome 2) approaches to efficiency comparisons.
Learning Unit Apportion overhead costs efficiently in a municipal specific
(Specific Outcome 3) context.
Learning Unit Recognise the importance of classifying costs by behaviour.
(Specific Outcome 4)
Learning Unit Identify difficulties of classifying costs by behaviour in a
(Specific Outcome 5) municipal financial management system.
Learning Unit Understand the benefits and limitations of classifying costs by
(Specific Outcome 6) relevance to the decision consideration.
3.3 Facilitator Conduct
The provider will have a Facilitator Code of Conduct and standard Service Level Agreement that
needs to be discussed and agreement signed before commencement of this learning
programme. Make sure that these legal documents are in place before embarking on the
facilitation of this programme.
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3.4 Learner Support
Please remember that this programme is Outcomes Based – this implies the following:
 The Learner is responsible for his/her own learning – as Facilitator you are required to make
sure he/she has exposure to structured, highly participative contact sessions, and that
he/she provides input to contact sessions activities where required.
 Activities are learner driven – make sure you assist the learner in using the Learner Guide
and Portfolio Guide in the manner intended, and are familiar with the requirements for
summative assessment.
 Due to the vocational nature of the qualification / learning programme, the Facilitator is
required to facilitate all practical activities as closely as possible to actual working
conditions, and to cover all formative activities in the Learner Guides.
 Assessment Support – Facilitators are required to provide support to learners in identifying

coaching and mentoring requirements, and provide support to learners between facilitated
sessions. Learners will return to the workplace for a period of time between each facilitated
contact session, and must complete their Portfolios of Evidence as well as FSA in that
period.
3.5 Standard Administration
The administration requirements are subject to the quality management system of the provider –
however, there are certain documents that are critical to the success of the qualification /
learning programme.
As facilitator you are required to follow the rules below carefully to assist us in
remaining compliant with SETA accreditation requirements.
Please take a moment to familiarize yourself with the requirements.
1. Attendance Register: Candidates are required to sign the Attendance Register every day
of attendance.
2. Learner Registration Form: Each learner must complete a Learner Registration Form
during Orientation of the programme.
3. Learner Evaluation Form: Learners are required to complete an Evaluation Form at the
end of each Learning Unit contact session.
4. Copy of ID: Each candidate must submit a copy of his ID Document before the end of the contact
session – please inform candidates accordingly!
Facilitators Note:
Without the Learner Registration and ID Documents the provider will not
be able to register the learners with SETA for certification purposes.
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4. Administration
4.1 Learner Administration
Tip:
Please refer to the last section of the Learner Orientation Guide for the
learner administration that needs to be completed – this is essential in
registration as a learner for unit standard 116340 with the SETA.
The learner administration which must be completed and submitted are as follows:
1. Learner Registration Form
2. Submission of certified ID copy
3. Provision and Assessment Contract
4.2 Facilitator Administration

Please make sure that you complete the following documents and submit to the provider at the
end of the facilitation session:
1. Attendance Registers
2. Facilitator Report
4.3 Facilitator Report
Tip:
The Facilitator is required to complete a Facilitator Report for the facilitated
contact session per Learning Unit.
The provider will have a Facilitator Report as part of the standard facilitation
administration – alternatively, the Facilitator Report below may be used:
Learning Apply costing Facilitator

Programme principles to Name
Name municipal operational
and service-based
costing
Unit standard 116340 Unit Standard Apply costing principles to
I.D Name municipal operational and
service-based costing
Dates of Date of Report
Facilitation
Self Assessment:
Please complete the Facilitator Report as accurately and honestly as
possible. Please take time to add your comment on every
subsection, in order for us to continuously improve our training
quality!
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The purpose of the Facilitation Report is to evaluate the following:
 logistics and support
 facilitation
 training material
 assessment
Your honest and detailed input is therefore of great value to us, and we
appreciate your assistance in completing this evaluation form!
No Criteria / Question
Standar
Standar
Sufficie
Excelle
Above
Below
Poor
nt
nt
1 2 3 4 5
1 Was communication regarding attendance of the
programme efficient and effective?
2 Was the Programme Coordinator helpful and
efficient?
3 Was the training equipment and material used
effective and prepared?
4 Was the training venue conducive to learning (set-
up for convenience of learners, comfortable in terms
of temperature, etc.)?
Additional Comments on Logistics and Support
No Criteria / Question Above Standard

Below Standard
Sufficient
Excellent
Poor
1 2 3 4 5
B Facilitator Evaluation
1 Learners were prepared and motivated to attend the
programme
2 Learners participated well and provided constructive
input
3 The programme allows for the use of a variety of
methods, exercises, activities and discussions
4 Learners were punctual and kept to the schedule
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Additional Comments on Facilitation
Excellen
Standar
Standar
Sufficie
Above
Below
Poor
t
1 2 3 4 5
C Learning Programme Evaluation
1 The learning outcomes of the programme are
relevant and suitable.
2 The content of the programme was relevant and
suitable for the target group.
3 The length of the facilitation was suitable for the
programme.
4 The learning material assisted in learning new
knowledge and skills to apply in a practical
manner.
5 The Learning Material was free from spelling and
grammar errors
6 Handouts and Exercises are clear, concise and
relevant to the outcomes and content.
7 Learning material is generally of a high standard,
and user friendly
Spelling/ Grammatical Errors

Trainer/Learner File, etc. Section/Page What?
Additional Comments on Learning Material
13
Above Standard
Below Standard
Sufficient
Excellent
Poor
1 2 3 4 5
E Assessment Evaluation
1 A clear overview provided of the assessment
requirements of the programme was provided
2 The assessment process and time lines were clearly
explained
3 All assessment activities and activities were
discussed
Additional Comments on Assessment
Further Comments:
(Please note any relevant information, difficulties incurred, etc. that you regard as important.)
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
____________________________________________________________________________
_______________________________________________________________________
Facilitator Date:
Sign:
4.4 Attendance Register
Programme Name Facilitator Name
Dates of Venue
Attendance
Name & Surname ID Number Contact Details 1 2 3 4 5
14
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GUIDELINES FOR FACILITATORS
This Facilitators Guide is a resource, which will help you to:
 Understand the programme, as well as its objectives, characteristics and the

requirements it places on you the trainer.
 Work through this Leaders Guide thoroughly in the early stages of delivering this
programme.
 Develop your confidence and ability to deliver, in a way that is best for you.
You will probably find yourself moving through three stages of your development as a trainer
of the Plan a municipal budgeting and reporting cycle Programme:
 Learning: While learning to train this programme you may need to use the Leaders
Guide as it will provide you with a simple and low-risk method for delivering the training.
 Prompting: As you become more comfortable with the programme, you may be able to
move onto using the Lesson Plan. This document has been written as a prompt sheet
to remind you of the contents to be covered, the structure and the sequence.
 Creating: You will inevitably reach a stage when you experience the facilitators guide
as being "restrictive" and find that you can contribute many additional ideas in the
delivery of this programme, go ahead, keeping to the Lesson Plan.
The notes are generally governed by a key verb. These are usually Explain or Elicit.
 Explain: will be followed by information that you need to tell the group.
 Elicit: will be followed by information that you need to make clear to the group either by
asking them questions or that they generate information for themselves or by telling
them and seeking their agreement/testing their understanding. How you elicit is up to
you, you will need to plan your own questions, which you may state slightly differently
each time that you train.
 A number of other key words have been used, i.e. discuss, model, demonstrate, etc,
which will be self -explanatory.
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The way you deliver the programme and the selection of the additional role-plays and exercises
will be affected by the experience of the delegates. Get to know more about them prior to the
training session:
 How many people do they do reviews with, i.e. how much time do they spend on
performance management?
 When they do reviews (currently), i.e. how much more time do they need to invest in
performance management?
 How long have they been doing reviews, i.e. their experience and knowledge of dealing
with employees in this context?
 Their style of conducting reviews, i.e. how much participation do they encourage from
their employees?
If you have not attended the programme as a delegate, you should spend time reflecting on
your own experiences of performance reviews, as a Manager or as an Employee.
This will help you to:

 Apply the contents of the programme to your own experiences and develop a level of
authority on the subject. Think about the various people who have reviewed your
performance and how they did it. Think about the various people whose performance
you have reviewed and how you went about doing it.
 Generate examples and case studies of your own to illustrate points as you make them.
The Facilitators Guide has been compiled using symbols to assist you identifying different
requirements as you work through the manual. The following symbols indicate these different
requirements:
Learning Activities Exercises
Role-plays Case Studies
Outcomes Assessment Criteria
Steps to Follow Glossary
Summary Discussion
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COMPETENCIES FOR FACILITATORS
You will be required to be proficient in the following competencies.
1. Presentation of Content:
 Understanding and explaining key concepts.
 Effective presentation skills, i.e. use of training aids, verbal and non-verbal
communication.
 Summarising key points in an effective and succinct manner.
2. Management of the Group:

 Using facilitation skills to promote a positive, comfortable learning environment for
each delegate while maintaining appropriate control of the group process in order
to achieve the learning objectives.
 Using questioning techniques that draw relevant information maximise group
participation and check for understanding.
 Dealing with unplanned behaviour/events so that the objectives are still achieved.
 Managing time.
3. Management of exercises/skills practices:

 Providing sufficient rationale/instructions for exercises/skills practices to enable
delegates to carry out the exercises.
 Following the procedure in the Leaders Guide in a proper sequence.
4. Feedback Skills:
 Analysing behaviors during role-plays accurately.
 Representing feedback accurately, meaningfully with appropriate evidences, i.e. using
the same guidelines as in the Workbook.
 Presenting feedback that highlights learning, involves delegates in the process, specific
actions are applied.
5. Facilitation of Skills Transfer:

 Using relevant examples/analogies to link concepts/skills practices to on the job
experience.
 Stressing the value of the use of the skills in the workplace and making it easy for
delegates to "transfer" this training.
 Drawing out connections from delegates by using knowledge of the organisation, their
job environment and responsibilities.
 Modeling the skills with energy and enthusiasm.
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FEEDBACK SKILLS FOR FACILITATORS
As feedback skills are critical throughout this programme, we have provided some guidelines,
which will assist you.
Provide Structure:
Providing structure means telling people what is going to happen next, and what is going to be
expected of them when it happens. This information will help them to relax and to prepare
themselves.
Specifically:
 Give an overview of the feedback process at the beginning of the session.

 Give clear explanations of the next stage at major shift points; for example: at the end of
the introduction; the end of group feedback; the end of individual feedback.
 Summarise the main conclusions reached by the group or individuals periodically for
example; the end of a graph slide, or group feedback; the end of an individual's
feedback.
Shift the Focus of Power:
In the face of objective data, the group can feel pretty powerless. The power rests with the data
and with the person presenting it. It is important to shift the focus of power away from the
facilitator/trainer and towards the group.
Specifically:
 Providing structure will help the group to feel in some control of the session.
 Clarifying the purpose of the feedback will help the group to take some responsibility for
the session (for example the session is to help them make decisions, etc.)
 Getting the data up in front of the group as quickly as possible, so that there are no
unnecessary delays (for example over-explanation of behaviour definitions or pieces of
research; or perception gap exercises).
 Encouraging the individual and group to take ownership of assessing their own progress
and development.
Be Quick:
One of the advantages of Behaviour Analysis is that it can help someone decide on a practical
action for skill development relatively quickly.
This is because:
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 It doesn't go for the whole picture.
 It doesn't explore in great depth why people behave in the way that they do.
 Ensures that you move through feedback at the right speed and do not become "bogged
down"
 Focuses on the impact of someone's behaviour rather than its causes; understanding of
impact provides the motivation to change.
 Moves from problem to solution; having established an area of concern or difficulty,
explore what can be done, behaviourally, that will help.
Use Questions:
The role of the facilitator/trainer should be as a guide. This will involve some explanation;
behaviours; explaining the slides; covering on research models. But the behavioural style
should be primarily a questioning one.
Specifically:
 Seek information to encourage the group to discuss the data. In particular use Seeking
Information to help the group evaluate the data, their own and the impact of other
people's behaviour.
 Test Understanding to clarify the group's understanding of the data and meaning to
them. Use it also to challenge people whom are avoiding or resisting messages from
the data or from the rest of the group.
 Seek Proposals from the group and individuals about how they could improve their
effectiveness.
BE SPECIFIC:
As much as possible, be specific when you are giving feedback.
Specifically:
 Give specific examples of people's behaviour when appropriate. This is especially useful
of Defend/Attack behaviour, when it is important to let people know exactly what was
said. It is relevant for other behaviours and helps people to relate the data to what
actually happened.
 Avoid vague comments such as "That's interesting" or "You might want to think about
that". Comments like these, if left in the air unexplained, create the impression that
you're withholding (negative) information from the group. The locus of power will shift
back towards you and away from the group.
 When members of the group are talking, ask them to be specific and give examples. If
they are talking about their job, ask them to give details.
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BE NON-EVALUATIVE:
Because the source of the feedback is objective data, the facilitator/trainer cannot afford to be
evaluative or judgmental in any way. Subjective opinion will undermine the data and confuse
the group. When you've just spent an hour observing a group make a complete hash of an
activity, or being irritated beyond measure by the level of someone's Shutting Out behaviour,
being non-evaluative and non-judgmental can be hard.
Specifically:
 Avoid using words which betray your value judgments, for example: "That's a good level
of summarising there"; “If you Shut Out too much you're going to start irritating people".
Not only do these words express your opinion, they suggest to the group that there are
"right answers" that you are judging them against.
 Get the group to do their own evaluation. They may feel very differently to you (found
the Summarising tedious or the Shutting Out acceptable). They may feel exactly the
same as you. Either way, how they feel is more important than how you feel.
BE SOLUTION-CENTRED:
Behaviour Analysis feedback is essentially solution-centred. Put it another way; Behaviour

Analysis is about asking: "How could you be more effective?" rather than: "Why are you
ineffective?” A common reason why people initially take a long time giving Behaviour Analysis
based feedback is because they focus too heavily on problems, and often don't switch to
solutions at all, which means that it's difficult to know where to stop! It also means that the
person receiving the feedback has no way forward; they have been left with the problem.
As the facilitator/trainer, your role is to help people to:
 Identify areas where they have behaved inappropriately or not as effectively as they
could have.
 Ways in which they could change their behavioural strategy so that they are more
effective.
 Specific skills that they can develop in order to carry out their new strategy and ways in
which they can develop these skills.
BE NON-PRESCRIPTIVE:
The emphasis must always be on the receiver of the feedback identifying his/her own solution.
There may be times when it is blindingly obvious to you what someone should do. If you tell
them, the chances of them actually doing it are reduced. They will be far more committed to the
solution if they identify it themselves.
Specifically use:
 Seeking Proposal behaviour to encourage them to find solutions to issues that have
arisen.
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 Testing Understanding to clarify their proposal, and as an alternative to disagreement if
you think it is a poor solution.
 Building behaviour to modify the proposal in order to overcome any flaws that you have
identified.
INTEGRATE TO OTHER POINTS:
The same issue will often arise at different points in the session: points raised during group
feedback will re-emerge in someone's individual feedback, or the same point is reflected in two
different graph slide displays. When this happens, try to refer back accurately to what people
have said earlier.
This is important because:
 It shows you have heard and respected what they said.

 It avoids needless repetition and thus saves time.
 It can allow you to go into the issue more deeply, using their earlier responses as a
starting point.
MAKE IT RELEVANT:
With Behaviour Analysis based feedback, it is easy to become absorbed by the data and thus
focus too heavily on the "snapshot" that the data represents. It is important that you use the
data, rather than, as can sometimes happen, the data using you.
Specifically:
 Help the group to explore whether the data is typical of their behaviour in other
situations.
 Explore problems they experience in their job situations, to see if they are reflected by
the data on display.
 Explore the ways in which they would like to be more effective in their present (and
possible future) job situations.
 Identify action plans that are practical and which will be a step towards achieving greater
effectiveness.
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PREPARING FOR THE SESSION
 Use the Session Preparation Checklist (see Addendums) as a guideline to ensure that
all required resources and materials are available prior to the training session.
 The lesson plan will also assist in preparing for the session.
NOTE:
 The Attendance Register should be completed by all candidates attending the training
session.
 The pre and post assessment results must be filled in by the facilitator at the end of the
training session.
Introduction
Welcome everyone to the session. Give a general overview of the training modules you will
cover during the entire training process.
Confirm the training session by showing the OHT.
Exercise - Ice Breaker
To help set the atmosphere and put delegates at ease use one of the following ice breakers.
Explain how you would like delegates to introduce themselves.
Write the following on the flip chart:

 Who are you?
 What is your current job?
 Share some personal information about yourself.
 How many employees' performance will you be reviewing?
 Suggest a ground rule for the day.
 What are your expectations and/or reservations for this session?
Explain what you mean by ground rules. They should think about likes/dislikes about training,
i.e. confidentiality, cell phones off, no interruptions, keep to agreed breaks, etc.
Explain that unless people have thought about what they want to get out of a training session,
they rarely achieve anything of value from the session. Expectations include getting answers to
questions, learning new skills, hearing different opinions etc.
23
Model how long you want delegates to take by introducing yourself using the questions on the
flip chart. Explain that introductions should not take much longer than one to two minutes.
These introductions can be carried out in a variety of ways.
Trainer Tip: It is possible that delegates have attended training courses together and know
each other well. Here are a few variations that you can use for the ice breakers.
Option One: Divide the group into pairs. Request the individuals to introduce themselves to
their partners. Ask their partners to introduce them to the group.
Option Two: Ask each individual to introduce themselves to the group.
Option Three: Non-verbal introduction. This icebreaker can be used very effectively if the
delegates know each other very well and do not want to do the usual introductions. Divide them
into pairs. Demonstrate the introduction to them by doing a non-verbal introduction of yourself
and asking them to tell you what you have “told” them about yourself. Give them two minutes
each to introduce themselves. When you have returned to the larger group get the partner to
introduce the individual while the individual evaluates how accurately the partner introduces
himself/herself. You can use this as a short discussion on the importance of non-verbal
communication.
Option Four: Unprepared introduction. This introduction may be used to demonstrate that
even if we work with people day after day, we don’t often get to ‘really’ know them. Change the
list on the flip chart to read: Name of person, what is their current job, some personal
information about their family, their hobbies, and their favourite possession. Ask a delegate to
introduce another delegate by using the above topics. The only rule is that they may not ask the
delegate the information, they simply have to guess. Once the delegate has completed the
introduction, ask the person he/she was introducing to supply the correct information where
applicable. Also ask them to share a ground rule and their expectations and capture this on the
flip chart. Debrief by explaining how important it is to get to know your employees in order to
manage their performance effectively.
Review the ground rules you’ve captured on the flip chart to ensure that everyone agrees with
them. They can be added onto as needed. Place flip chart on wall.
Summarise the expectations and reservations. If there are any expectations that will not be
covered in the session, highlight them and discuss with the group how best to deal with it, i.e.
build it in, discuss in with the particular delegate, send them follow up information, etc.
Administrative Arrangements
24
Explain the administrative arrangements with the group in terms of:
 Smoking arrangements;
 Breaks;
 Meals and refreshments;
 Starting and finishing times; and
 The importance of attending the full session.
Elicit whether any special arrangements need to be made regarding times, special meals, etc.
Training Methodology
Explain the training methodology of the session, i.e. that the session is practical and
experiential:
 Minimal theory just enough to cover principles, models and processes;

 Experiential by learning as much as possible through participation as individuals (sharing
their experiences in group discussions).
Explain that this session belongs to the delegates and that they should feel free to question,
argue constructively and ensure that they understand the process by the end of the session.
Workbooks
Hand out the workbooks and explain how it is designed and how it should be used.
Tell the delegates that the manuals are theirs and that in order to make their learning effective,
they should feel free to make additional notes, jot down questions they have or simply sketch
diagrams which will help them link information.
Discuss how the workbook is designed and meant to be used by talking them through the
information in the workbook.
Course Contents and Outcomes

Explain the course outcomes and contents in context with the Unit Standard and the Index
below
25
Facilitator’s Checklist
Preparation Yes no
Content Knowledge
I have sufficient knowledge of the content to enable me to facilitate
with ease.
Application Knowledge
I understand the program matrix and have prepared for program
delivery accordingly.
Ability to Respond to Learners Background and Experience
I have studied the learner demographics, age group, experience and
circumstances, and prepared for program delivery accordingly.
Enthusiasm and Commitment
I am passionate about my subject and have prepared my program
delivery to create a motivating environment with real commitment to
success.
Enterprise Knowledge
I know and understand the values, ethics, vision and mission of the
service provider under whose auspices the program will be
conducted, and have prepared my program delivery, reporting and
administrative tasks accordingly.
Equipment Checklist:
Learner Guides: 1 per learner
Learner Assessment Guides: 1 per learner
Writing material and stationery for facilitator and learner
White board and pens
Flip chart paper
Proxima projector and screen
Notebook computer and program disk
Documentation Checklist:
Attendance register
Course evaluation
Learner course evaluation
Portfolios of evidence
26
Lesson plan
Welcome and opening 8:30- 9:30

Activity Resources Time minutes
Welcome - 5
Ice breaker Ice breaker 10
Introductions Name tags 10
Expectations Flip chart 5
Programme over view Flip chart 5
SA learning environment Flip chart/ Projector 5
Programme Flip chart projector 15
outcomes/assessment process
(refer to the assessment guide)
Rules Flip chart 5
Time management Flip chart 3
Resources and facilities - 2
Programme lay out Flip chart/ projector 5
DAY ONE
Session one : Section 1 9:45 - 10.30
Section 1: Compiling, interpreting and applying unit cost statements
Section Outcomes
 The unit costing approach to service delivery is explained in a municipal service
delivery context. (SO 1,AC 1)
 The service measurement unit is identified in a municipal service delivery context.

(SO 1, AC 2)
 The relationship between total cost of and unit cost is discussed in terms of service
provision. (SO 1, AC 3)
 The method of unit costing is evaluated within the decision-making context. (SO 1,
AC 4)
 The importance of using marginal costs is explained as part of the decision-making

process. (SO 1, AC 5)
 A unit cost statement is compiled in relation to a specific decision problem. (SO 1,

AC 6)
27
 Decisions relating to cost-efficiency and value for money are made on the basis of
the unit cost statement. (SO 1, AC 7)
Introduce the session Section 1
Allow learners to do activity on page 9-10 Facilitator led
Discuss the unit costing approach discussions
Explain marginal costing Individual, group and
Allow learners to do practical activity on page 17 practical activity-
Allow learners to complete formative assessment (SO 1) scenario analysis
Debrief and conclude Pages 8-17
TEA BREAK 10:30-10.45

Session two 10.45- 12.30
Session 2: Efficiency comparisons
Section outcome
 The concept of efficiency is interpreted within the framework of service delivery in
municipalities. (SO 2, AC 1)
 Efficiency indicators are identified and listed for appropriate use in a municipal
context. (SO 2, AC 2)
 The importance of benchmarking is identified and explained within a municipal
 A cost effectiveness approach is used to evaluate different options of service
delivery. (SO 2, AC 4)
 Benchmarking methods are critically discussed in terms of their strengths and
weaknesses for process in a municipal service provision context. (SO 2, AC 5)
Recap on morning sessions with learner input Section 2
Discuss the strengths and weaknesses of recognised Facilitator led
approaches to efficiency discussions
Explain efficiency measurements Group and Practical
Discuss benchmarking activity-scenario
Debrief and conclude analysis
28
Allow learners to complete formative assessment (SO 1) Pages 18-22
Lunch break 12:30 - 13:15
Session three
Session three: 13:15 – 16:00
Section 3:
 Efficiency comparisons
Section outcomes
 The cost effectiveness analysis is evaluated in terms of its strengths and
weaknesses for process in a municipal service provision context. (SO 2, AC 6)
 The use of a cost benefit analysis in evaluating social efficiency and effectiveness
of service delivery is appraised in terms of its viability in a municipal provision
 Efficiency indicators and performance management are compared in terms of the
links between the two. (SO 2, AC 8)
Discuss the cost effectiveness approach Facilitator led
Explain the efficiency indicators and performance management discussions,
Allow learners to do group activity on page 31-32 Individual, group
Debrief and conclude and practical

activity
Pages 22-32
DAY TWO
Section 1: Apportionment of overhead costs
Section Outcomes
 The importance of apportioning overhead costs to a specific service is commented
on in relation to the decision-making context. (SO 3, AC 1)
 The allocation bases are commented on in terms of apportioning service overheads.
(SO 3, AC 2)
 Types of overhead costs are identified in relation to delivering a specific service.
29
(SO 3, AC 3)
 The most appropriate allocation base for the overhead cost is determined in line
with sound costing principles and management information policy. (SO 3, AC 4)

Discuss the apportionment and allocation of overheads Facilitator led
Debrief and conclude discussions
Individual, group
activity and practical
activity
Pages 33-37
TEA BREAK 10:30-10.45

Session 2: Apportionment of overhead costs

Section outcome
 The basis is calculated for an overhead recovery rate. (SO 3, AC 5)
 A calculated overhead recovery rate of a municipal service is interpreted to facilitate
decision-making. (SO 3, AC 6)

Explain determining the overhead recovery rate Facilitator led
Discuss the overhead recovery rates and decision-making discussions
Allow learners to complete formative assessment (SO 3) Group and individual
Debrief and conclude activity
Pages 37-39
Session three
30
Section 3: Apportionment of overhead costs
Section outcome
 The use of Service Level Agreements to solve the problem of costing in support and
administrative service sections of a municipality is explained using examples where
the situation was improved by the practice. (SO 3, AC 7)
Discuss the service level agreements (SLA) and costing support
and administrative services Facilitator led
Explain costing support and administrative services discussions
Allow learners to do group activity on page 40-41 Individual and
Allow learners to complete formative assessment (SO 3) Practical activity
Debrief and conclude

Pages 39-41
DAY THREE
Section 1: The importance of classifying costs by behaviour
Section Outcomes
 Cost behaviour is recognised within a local government context. (SO 4, AC 1)
 Cost drivers are identified for each specific municipal service. (SO 4, AC 2)
 Cost drivers are classified according to their effects on different costs categories.
(SO 4, AC 3)
 A distinction is made among various types of costs in the municipal organisation.

(SO 4, AC 4)
 Costs are classified by their behaviour in line with sound costing principles and
management information policy. (SO 4, AC 5)
 The relationship between cost drivers and municipal service levels is indicated
31
within a municipal context. (SO 4, AC 6)
 The behaviour of costs and their related cost drivers is interpreted in making
decisions on service levels. (SO 4, AC 7)

Discuss the importance of classifying costs by behaviour
Allow learners to do group activity on page 47 and practical Facilitator led
activity on page 47-48 discussions
Debrief and conclude group activity and
practical activity
Pages 42-48
TEA BREAK 10:30-10.45

Session 2: Difficulties of classifying costs by behaviour

Section outcome
 The relationship between the budgeting format and the costing system is explained
within a municipal context. (SO 5, AC 1)
Discuss the relationship between the budget and the costing Facilitator led
system discussions
Group and practical
Debrief and conclude activity
Pages 49-52
Session three
Section 3: Difficulties of classifying costs by behaviour
Section outcome
32
 The differences between budget control and cost control are discussed for a
municipal service delivery process. (SO 5, AC 2)
 The cost control approaches are applied in municipal expenditure management.
(SO 5, AC 3)
 Classifying costs by behaviour in a municipal financial management system are
explained in terms of the difficulties of using this approach. (SO 5, AC 4)
 Changes to the financial management and budgeting system are recommended in
line with supporting effective cost classification for a municipality organisation. (SO
5, AC 5)
Discuss budget control and cost control
Explain changes that need to be made to the financial Facilitator led
management and budgeting system in order for effective cost discussions
classification to take place. Group and
Allow learners to do group activity on page 55-56 Practical activity
Debrief and conclude
Allow learners to complete formative assessment (SO 4) Pages 53-56
DAY FOUR
Section 1: Classifying costs by relevance to the decision consideration
Section Outcomes
 Cost information for the decision-making in a municipality is analysed in terms of the

value it provides. (SO 6, AC 1)
 Cost classification for decision-making are commented on in terms of the limitations
they have for municipal financial management. (SO 6, AC 4)

Explain cost information and decision making in a municipality
Debrief and conclude Facilitator led
33
discussions
group activity and
practical activity
Pages 57-60
TEA BREAK 10:30-10.45

Session 2: Classifying costs by relevance to the decision consideration

Section outcome
 The benefits of cost classification for a specific decision are identified using a
costing matrix. (SO 6, AC 2)
 The relationship between the purpose of decision-making and cost behaviour is
discussed with specific reference to municipality operational circumstances. (SO 6,
AC 3)

Discuss costing matrix Facilitator led
Explain the relationship between decision making and cost discussions
behaviour Group and practical
Allow learners to do group activity on page 62 and practical activity
activity on page 62-63
Debrief and conclude Pages 61-63
Finishing the programme

Programme evaluation Allow learner to evaluate the workshop using the
provide forms
Next steps Tell learners the next steps, training, assessment
34
procedures
Assessments Explain the assessment process to the learners
35
2.2 FORMATIVE ASSESSMENT MARKING MEMO
SECTION A:
Answer all questions in this section
Question 1 (SO 1)
Instructions to the learner

You are required to complete the following questions with regards to application of costing
principles to municipal operational and service-based costing
No Question 1 Area covered

a) Explain the unit costing approach to service delivery in a municipal
service delivery context. (5)
b) Identify the service measurement unit in a municipal service delivery
context. Use examples from own municipality. (5)
c) Discuss the relationship between total cost of and unit cost in terms of
service provision. (5)
d) Discuss ways that can be used to evaluate the method of unit costing
in your municipality. (6)
e) Explain the importance of using marginal costs as part of the decision-
making process. (8)
f) What should you put into consideration when compiling a unit cost
statement in relation to a specific decision problem? (6)
Facilitator discretion is required. Learner’s answer may include the following;
The unit cost refers to ratio of total accumulated costs in a particular service operation or
department for an entire period (month, quarter or year) by the total number of units produced
during the period.
Unit cost = Total Cost
36
Total Output = R per unit of output
Service measurement units are measures of the services provided to communities in terms of
specific outputs. A cost per unit may be charged to the user of such a service in order to recover
its full cost. If however the service is offered free of charge to the user, this information is still
useful to the municipality as comparing the cost of providing the service with the amount of the
grant that has been allocated will give an indication of the level of service or the number of
service units that can be offered. (For example, the cost of free basic services compared to the
equitable share grant received).
The following are examples of service units that can be used to measure the service quantity:
 Office accommodation : square metres of office space utilised
 Mechanical workshop : actual hours booked
 Plant usage : actual hours operated
 Internal audit : actual hours
 Finance : number of meters read
 Emergency : number of emergencies responded to
 Call centre : number of calls answered
Total costs = Direct costs + Indirect costs + General and Administrative Costs.
In order to determine the unit cost of providing a particular service or producing a unit of output,
the total costs and output need to be aligned or “mapped”. This mapping process brings
workload, financial and manpower data together to assign direct costs; allocate indirect costs
and spread overhead costs to specific outputs. Cost data are collected from official accounting
systems and are grouped together by cost account codes. The costs are linked or mapped to
particular outputs. This process results in cost-output relationships that provide management
with the visibility of the total cost for a given output. This mapping process should be
continuously reviewed and updated. From this mapping process, the unit cost is arrived at and
captured in a “Unit Cost Statement”.
37
The marginal cost of providing a good / service is the change in the total cost from producing
one more additional unit or product or service. Marginal costing is also known as “Direct
Costing” or “Variable Costing”.
It is a costing model that includes only the variable cost of providing a good or service. The
marginal costing approach makes a sharp distinction between variable costs and fixed costs. It
is the variable cost which is considered in the decision making process.
Cost plays a pivotal part in decision making of any organisation, be it in the public or private
sector. Decisions involve choosing between alternatives wherein such alternatives are
compared and assessed in terms of costs and benefits. Marginal cost analysis helps a
manager to decide on which alternative to choose based on anticipated cost and revenue. In
general only the differences between alternatives are relevant for decision making. Marginal
costing is fairly simple to understand and it provides very useful information for decision-making.
By concentrating on maintaining a uniform and consistent marginal cost, practical cost control is
greatly facilitated, as only the costs that are directly under management’s control are focussed
on.
However, separating costs into fixed and variable costs is difficult and can sometimes give
misleading results. And in practice, revenue per unit, fixed cost and variable cost per unit may
change, which could make the application of the assumptions underlying marginal costing
unrealistic.
Question 2 (SO 2)
Select an area of service delivery common to most municipalities and,
a) Discuss the concept of efficiency as it pertains to this particular area of service delivery
b) List the most appropriate efficiency indicators to be used and why.
c) Explain which benchmarking methods should be used and why.
d) Explain how a cost effectiveness analysis could be conducted and discuss its usefulness.
e) Identify how the efficiency indicators could be linked to performance management. (30)
Facilitator discretion is required. Award 1 mark for each valid point.
Question 3 (SO 3)
Identify a municipal product or service and do the following:
38
a) Identify the types of overhead costs relating to the delivery of this product / service.
b) Comment on the importance of apportioning these overhead costs to the identified
product or service.
c) Discuss the most appropriate allocation bases that could be used for the apportionment
of service department overheads.
d) Discuss the most appropriate allocation bases that could be used to calculate an
overhead recovery rate for this particular product or service.
e) Discuss how the calculated overhead recovery rate can be used to assist in decision-
making.
f) The group must report back to the class on their discussions.
g) Discuss the extent to which SLAs have been used in your municipalities to deliver
support services.
h) Discuss the extent to which the use of SLAs has solved the overhead costing problem.
(40)
Facilitator discretion is required. Learner’s answer must be based on a specific municipality.
Question 4 (SO 4)
a) Make a comprehensive list of all the services offered by your municipality. (8)
b) Identify the cost drivers / activities which cause costs to change for each service. (10)
c) Select ONE of the services and do the following:

i. Make a list of all the costs associated with the delivery of the identified service.
ii. Identify the cost drivers for each of those costs
iii. Classify each of the costs according to whether they are variable, fixed or mixed.
iv. Discuss how the cost behaviour and cost drivers can be interpreted for decision making
purposes.
v. Discuss the relationship between the cost driver and the specific municipal service level.
(40)
Facilitator discretion is required. Learner’s answer must be based on own municipality.
39
Question 5 (SO 5)
Select a municipality and discuss the following:

a) What is the budgeting format being used by the municipality?
b) What is the costing system being applied at the municipality?
c) What cost control approaches are being employed at the municipality?
d) How do the cost control approaches differ or support the budget control process or vice
versa?
e) What changes to the financial management system and the budgeting system can be
recommended to support effective cost classification? (25)
Facilitator discretion is required. Learner’s answer must be based on a specific municipality.
Question 6 (SO 6)
Decide on a service and a particular decision that needs to be made relating to the provision of
the service. This will be the frame of reference in terms of which you need to have the following
discussion:
a) What is the cost information that is needed in order to facilitate the decision?
b) Produce a costing matrix to assist with classifying the various costs incurred in providing
the identified service.
c) Why is that information valuable, i.e. how will it assist with the decision?
d) How much of this information is readily available in the current costing system?
e) How would classifying the various costs assist with the decision?
f) What are the limitations of cost classification for financial management within the
municipality? (30)
Facilitator discretion is required. Award 1 mark for each valid point.
40
SECTION B: PRACTICAL ASSESSMENT
Complete all activities in this section
Task 1 (SO 1, AC 1, AC 3, AC 5; SO 2, AC 1, AC 2, AC 3, AC 5, AC 8; SO 3, AC 1, AC 2, AC
3, AC 7; SO 5, AC 1, AC 2, AC 4; SO 6, AC 3; EEK; CCFO) - Presentation
You are to plan, prepare and conduct a 30 minutes presentation in the presence of your peers
and facilitator on the topic, application of costing principles to municipal operational and service-
based costing. As you present ensure that you clearly;
 Explain the unit costing approach to service delivery in a municipal service delivery
context.
 Discuss the relationship between total cost of and unit cost in terms of service provision.
 Explain the importance of using marginal costs as part of the decision-making

processIdentify and discuss legislation and standards governing auditing in municipalities.
 Interpret the concept of efficiency within the framework of service delivery in municipalities.
 Identify and list efficiency indicators for appropriate use in a municipal context.
 Identify and explain the importance of benchmarking within a municipal context.
 Critically discuss benchmarking methods in terms of their strengths and weaknesses for
process in a municipal service provision context.
 Compare efficiency indicators and performance management terms of the links between
the two.
 Comment on the importance of apportioning overhead costs to a specific service in

relation to the decision-making context.
 Comment on the allocation bases in terms of apportioning service overheads.
 Identify types of overhead costs in relation to delivering a specific service.
41
 Explain the use of Service Level Agreements to solve the problem of costing in support
and administrative service sections of a municipality using examples where the situation
was improved by the practice.
 Explain the relationship between the budgeting format and the costing system within a
municipal context.
 Discuss the differences between budget control and cost control for a municipal service
delivery process.
 Explain classifying costs by behaviour in a municipal financial management system in

terms of the difficulties of using this approach.
 Discuss the relationship between the purpose of decision-making and cost behaviour with
specific reference to municipality operational circumstances. (40)
NOTE: The facilitator or assessor shall complete the following presentation and facilitation skills
assessment form as you present.
Assessor discretion is required. Attached presentation and facilitation skills assessment form
should be used to assess the learner
42
TASK 1: PRESENTATION AND FACILITATION SKILLS ASSESSMENT FORM
LEARNER: _________________________________________________
DATE: _______________________ TOTAL SCORED: _______/40
Delivered his/her instructional presentation according to the following criteria:
Mark questions in the following manner:
ITEM DESCRIPTION MARKS
1 PREPARATION
1.1 Research and gathering of relevant information
/10
2. INTRODUCTION
2.1 Gains attention properly
2.2 Gives brief overview and purpose of the presentation
/6
3. PRESENTATION
3.1 Gives clear explanation or demonstration
3.2 Actively involves learners
3.3 Allows for practice and application
/8
4. TECHNIQUES
4.1 Good flow and sequencing
4.2 Proper questioning and feedback
4.3 Appropriate integration of media
/6
5. CONCLUSION
5.1 Proper summary and consolidation
5.2 Evaluates for outcomes
5.3 Links with subsequent topic
/5
6 GENERAL
6.1 Proper time management
6.2 Body language
6.3 Relationship with learners
6.4 General atmosphere
/5
TOTAL 40
43
/20
General comments:
_____________________
Signature of the assessor
44
2.3 SUMMATIVE ASSESSMENT MARKING MEMO
PRACTICAL TASKS
Work on the following tasks, gathering evidence and attaching all documentation used. Be as
practical as possible and use current and past projects to answer the questions asked.
You are required to apply costing principles to your municipal operational and service-based
costing. After the completion of the assessment process you will be able to:
 Compile and interpret a unit cost statement and apply the results in a decision-making
process
 Identify the strengths and weaknesses of recognised approaches to efficiency comparisons
 Apportion overhead costs efficiently in a municipal specific context
 Recognise the importance of classifying costs by behaviour
 Identify difficulties of classifying costs by behaviour in a municipal financial management

system
 Understand the benefits and limitations of classifying costs by relevance to the decision
consideration
Note:
In order to achieve the objectives listed above, complete the following tasks and attach all
relevant evidence in your POE guide
Task 1 (SO 1, AC 2, AC 4, AC 6, AC 7; CCFO)

You are required to compile and interpret a unit cost statement and apply the results in a
decision-making process. Ensure that you make decisions relating to cost-efficiency and value
for money on the basis of the unit cost statement. Use the guidelines below:
45
a) Identify the service measurement unit in a municipal service delivery context. (5)
(SO 1, AC 2)
b) Evaluate the method of unit costing within the decision-making context. (8)
(SO 1, AC 4)
c) Compile a unit cost statement in relation to a specific decision problem. (10)

(SO 1, AC 6)
Note
Attach a copy of your proposal and all relevant evidence in the POE guide.
Assessor discretion is required. Attached evidence should be used to assess the learner
Service measurement units are measures of the services provided to communities in terms of
specific outputs. A cost per unit may be charged to the user of such a service in order to recover
its full cost. If however the service is offered free of charge to the user, this information is still
useful to the municipality as comparing the cost of providing the service with the amount of the
grant that has been allocated will give an indication of the level of service or the number of
service units that can be offered. (For example, the cost of free basic services compared to the
equitable share grant received).
The following are examples of service units that can be used to measure the service quantity:
 Office accommodation : square metres of office space utilised
 Mechanical workshop : actual hours booked
 Plant usage : actual hours operated
 Internal audit : actual hours
 Finance : number of meters read
 Emergency : number of emergencies responded to
 Call centre : number of calls answered
46
Task 2 (SO 2, AC 1, AC 2, AC 4, AC 6, AC 7; CCFO)
You are required to identify the strengths and weaknesses of recognised approaches to
efficiency comparisons. Present your answer in report format. Ensure that your report covers
the following:
 Interpret the concept of efficiency within the framework of service delivery in
municipalities.
 Identify and list efficiency indicators for appropriate use in a municipal context.
 Use a cost effectiveness approach to evaluate different options of service delivery.
 Evaluate the cost effectiveness analysis in terms of its strengths and weaknesses for
process in a municipal service provision context.
 Appraise the use of a cost benefit analysis in evaluating social efficiency and
effectiveness of service delivery in terms of its viability in a municipal provision context.
(SO 2, AC 1, AC 2, AC 4, AC 6, AC 7)
Total marks: 30
Note
Attach a copy of your proposal and all relevant evidence in the POE guide.
Assessor discretion is required. Attached report and relevant evidence should be used to
assess the learner
Typical measures of efficiency include the following:
 Cost or Price indicators are both important in determining the economy and efficiency of
service delivery. E.g. the cost per kl of water
 Distribution indicators relate to the distribution of capacity to deliver services and are
critical to assessing equity across geographical areas, urban-rural divides or demographic
categories. Such information could be presented using geographic information systems. For
example, the number of indigent households in a specific ward.
47
 Quantity indicators relate to the number of inputs, activities or outputs. Quantity indicators
should generally be time-bound; such as the number of inputs available at a specific point in
time, or the number of outputs produced over a specific time period. E.g. the number of
accounts printed per hour.
 Quality indicators reflect the quality of that which is being measured against predetermined
standards.
Such standards should reflect the needs and expectations of affected parties while
balancing economy and effectiveness. Standards could include legislated standards and
industry codes for example, the ecoli content in a kl of water.
 Dates and time frame indicators reflect timeliness of service delivery. They include service
frequency measures, waiting times, response time, turnaround times, time frames for
service delivery and timeliness of service delivery. E.g. response time to resolve consumer
complaints, length of time to wait to write learner’s license etc.
 Adequacy indicators reflect the quantity of input or output relative to the need or demand -
"Is enough being done to address the problem?” E.g. the production of pamphlets to create
awareness amongst the public regarding the payment for municipal services.
 Accessibility indicators reflect the extent to which the intended beneficiaries are able to
access services or outputs. Such indicators could include distances to service points,
travelling time, waiting time, affordability, language, accommodation of the physically
challenged. E.g. the number of pay points in rural areas. Performance / efficiency indicators
are measures of inputs, processes, outputs, outcomes and impacts for services delivered.
In order to choose the best possible option of service delivery, the following analysis of cost-
effectiveness is required in order to guide decision making:
 Definition of the objectives of the intervention or project
 Identification and costing of all inputs
 Identification of outcomes
 Quantification of outcomes
 Comparison of costs with outcomes
48
In the light of resource constraints in general, the cost effectiveness approach identifies those
uses of resources which succeed in meeting their objectives with:
 Economy – that is by making the least possible demand on overall resources (in some
cases irrespective of the impact on outcomes)
 Efficiency – that is the use of the least inputs to achieve a particular output.
This term is used here in its economic sense of achieving a given level of effectiveness at
lowest cost. But the term is often mistrusted in the social policy field as a synonym for cuts even
though in economic terms the achievement of efficiency may require spending more rather than
less. It may be necessary to have a minimum threshold of spending to achieve any outcome at
all.
 Effectiveness - that is the achievement of improved outcomes. Improved outcomes
could take the form of improved levels of particular indicators (the number of admissions
to hospital say). But they can also take the form of slowing down the growth rate of an
undesirable indicator (crime rates, say).
Task 3 (SO 3, AC 3, AC 4, AC 5, AC 6; CCFO)
This is a follow up of tasks 1 and 2. You are now required to apportion overhead costs efficiently
in your municipality. Present your answer in report format. Ensure that your report covers the
following:
a) Identify types of overhead costs in relation to delivering a specific service. (5)

(SO 3, AC 3)
b) Determine the most appropriate allocation base for the overhead cost in line with sound
costing principles and management information policy. (8)
(SO 3, AC 4)
c) Calculate the basis for an overhead recovery rate. (10)

(SO 3, AC 5)
49
d) Obtain a calculated overhead recovery rate of a municipal service from your supervisor.
Interpret the calculated rate to facilitate decision-making. Present your findings in report
format. (10)
(SO 3, AC 6)
Note
Attach all relevant evidence in the POE guide.
Assessor discretion is required. Attached evidence should be used to assess the learner
Task 4 (SO 4, AC 2, AC 3, AC 4, AC 5, AC 6, AC 7; CCFO)
This is a follow up of tasks 1, 2 and 3. You are now required to recognise the importance of
classifying costs by behaviour. Use the guidelines below
a) Identify and classify cost behaviour for each specific municipal service according to their
effects on different costs categories. (5)
(SO 4, AC 2, AC 3)
b) Distinguish various types of costs in your municipal organisation. (5)

(SO 4, AC 4)
c) Classify costs by their behaviour in line with sound costing principles and management
information policy. (5)
(SO 4, AC 5)
d) Indicate the relationship between cost drivers and municipal service levels within a municipal
context. (5)
(SO 4, AC 6)
e) Interpret the behaviour of costs and their related cost drivers in making decisions on service
levels. (5)
(SO 4, AC 7)
Note
50
Assessor discretion is required. Attached evidence should be used to assess the learner.
Learner’s answer should be based on own organisation.
Task 5 (SO 5, AC 3, AC 5; EEK; CCFO)
This is a follow up of tasks 1, 2, 3 and 4. You are now required identify difficulties of classifying
costs by behaviour in a municipal financial management system. Ensure that you apply the cost
control approaches in municipal expenditure management. Use the guidelines below:
a) Recommend changes to the financial management and budgeting system in line with
supporting effective cost classification for a municipality organisation. (10)
(SO 5, AC 5)
Note
Task 6 (SO 6, AC 1, AC 2, AC 3; CCFO)
This is a follow up of tasks 1, 2, 3, 4 and 5. You are now required understand the benefits and
limitations of classifying costs by relevance to the decision consideration. Ensure that you apply
the cost control approaches in municipal expenditure management. Use the guidelines below:
a) Analyse cost information for the decision-making in a municipality in terms of the value it
provides. (8)
(SO 6, AC 1)
b) Identify the benefits of cost classification for a specific decision using a costing matrix.
(SO 6, AC 2) (10)
c) Discuss the relationship between the purpose of decision-making and cost behaviour
with specific reference to your municipality’s operational circumstances. (8)
(SO 6, AC 3)
51
Note
52
Unit standard
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:
Apply costing principles to municipal operational and service-based costing

SAQA US UNIT STANDARD TITLE
ID
116340 Apply costing principles to municipal operational and service-based costing
ORIGINATOR
SGB Public Administration and Management
QUALITY ASSURING BODY
-
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Public Administration
ABET UNIT STANDARD PRE-2009 NQF LEVEL NQF LEVEL CREDITS
BAND TYPE
Undefined Regular Level 6 Level TBA: Pre-2009 11
was L6
REGISTRATION STATUS REGISTRATION REGISTRATION END SAQA DECISION
START DATE DATE NUMBER
Reregistered 2015-07-01 2018-06-30 SAQA 10105/14
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2019-06-30 2022-06-30
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

This Unit Standard is intended for practitioners in local government who are involved in decision-making
processes at operational, management and political levels.
The qualifying learner will be able to:
 Use relevant cost information in all areas of decision-making within local government.
53
 To determine the economic cost of the services in order to make informed decisions about service
delivery.
 To analyse the apportionment of overheads in trying to determine the full costs of providing services.
 To decide on the efficiency of service provision by examining and comparing costs between services
and service providers.
 To advise on service agreements between departments in order to improve the costing system of the
municipality.
LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING

It is assumed that Learners are competent in:
 Communication at Level 4.
 Mathematical Literacy at Level 4.
 Economics at Level 4
UNIT STANDARD RANGE

The application of this Unit Standard is limited to a public sector organisation at the municipal level of
government, and would not include costing of services at a national or provincial level.
Specific Outcomes and Assessment Criteria:
SPECIFIC OUTCOME 1
Compile and interpret a unit cost statement and apply the results in a decision-making process.
ASSESSMENT CRITERIA
ASSESSMENT CRITERION 1
The unit costing approach to service delivery is explained in a municipal service delivery context.
The service measurement unit is identified in a municipal service delivery context.
The relationship between total cost of and unit cost is discussed in terms of service provision.
The method of unit costing is evaluated within the decision-making context.
The importance of using marginal costs is explained as part of the decision-making process.
A unit cost statement is compiled in relation to a specific decision problem.
Decisions relating to cost-efficiency and value for money are made on the basis of the unit cost
statement.
SPECIFIC OUTCOME 2
Identify the strengths and weaknesses of recognised approaches to efficiency comparisons.
ASSESSMENT CRITERIA
54
The concept of efficiency is interpreted within the framework of service delivery in municipalities.
Efficiency indicators are identified and listed for appropriate use in a municipal context.
The importance of benchmarking is identified and explained within a municipal context.
A cost effectiveness approach is used to evaluate different options of service delivery.
Benchmarking methods are critically discussed in terms of their strengths and weaknesses for process in
a municipal service provision context.
The cost effectiveness analysis is evaluated in terms of its strengths and weaknesses for process in a
municipal service provision context.
The use of a cost benefit analysis in evaluating social efficiency and effectiveness of service delivery is
appraised in terms of its viability in a municipal provision context.
Efficiency indicators and performance management are compared in terms of the links between the two.
SPECIFIC OUTCOME 3
Apportion overhead costs efficiently in a municipal specific context.
ASSESSMENT CRITERIA
The importance of apportioning overhead costs to a specific service is commented on in relation to the
decision-making context.
The allocation bases are commented on in terms of apportioning service overheads.
Types of overhead costs are identified in relation to delivering a specific service.
The most appropriate allocation base for the overhead cost is determined in line with sound costing
principles and management information policy.
The basis is calculated for an overhead recovery rate.
55
A calculated overhead recovery rate of a municipal service is interpreted to facilitate decision-making.
The use of Service Level Agreements to solve the problem of costing in support and administrative
service sections of a municipality is explained using examples where the situation was improved by the
practice.
SPECIFIC OUTCOME 4
Recognise the importance of classifying costs by behaviour.
ASSESSMENT CRITERIA
Cost behaviour is recognised within a local government context.
Cost drivers are identified for each specific municipal service.
Cost drivers are classified according to their effects on different costs categories.
A distinction is made among various types of costs in the municipal organisation.
Costs are classified by their behaviour in line with sound costing principles and management information
policy.
The relationship between cost drivers and municipal service levels is indicated within a municipal
context.
The behaviour of costs and their related cost drivers is interpreted in making decisions on service levels.
SPECIFIC OUTCOME 5
Identify difficulties of classifying costs by behaviour in a municipal financial management system.
ASSESSMENT CRITERIA
The relationship between the budgeting format and the costing system is explained within a municipal
context.
The differences between budget control and cost control are discussed for a municipal service delivery
process.
The cost control approaches are applied in municipal expenditure management.
56
Classifying costs by behaviour in a municipal financial management system are explained in terms of the
difficulties of using this approach.
Changes to the financial management and budgeting system are recommended in line with supporting
effective cost classification for a municipality organisation
SPECIFIC OUTCOME 6
Understand the benefits and limitations of classifying costs by relevance to the decision consideration.
ASSESSMENT CRITERIA
Cost information for the decision-making in a municipality is analysed in terms of the value it provides.
The benefits of cost classification for a specific decision are identified using a costing matrix.
The relationship between the purpose of decision-making and cost behaviour is discussed with specific
reference to municipality operational circumstances.
Cost classification for decision-making are commented on in terms of the limitations they have for
municipal financial management.
UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS

 An individual wishing to be assessed (including through RPL) 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 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 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

 Legislation pertaining to municipal budgeting.
 The process of budgeting at a municipal level.
 The role costing plays in the budgeting process.
UNIT STANDARD DEVELOPMENTAL OUTCOME

N/A
UNIT STANDARD LINKAGES

N/A
57
Critical Cross-field Outcomes (CCFO):
UNIT STANDARD CCFO IDENTIFYING

Identify and solve problems using critical and creative thinking processes, e.g. by trying to choose
between costing methods.
UNIT STANDARD CCFO WORKING

Work effectively with others as a member of a team, group, organization or community, e.g. through
communicating with others regarding costing methodology.
UNIT STANDARD CCFO ORGANISING

Organise and manage oneself and one's activities responsibly and effectively, e.g. through the
demonstration of accuracy in all costing processes.
UNIT STANDARD CCFO COLLECTING

Collect, analyse, organise and critically evaluate information, e.g. through collecting all the factors to be
included in calculating the cost of an item.
UNIT STANDARD CCFO COMMUNICATING

Communicate effectively using visual, mathematical and / or language skills in the modes of oral and/or
written persuasion, e.g. through advising and motivating others with regard costing options.
UNIT STANDARD CCFO SCIENCE

Use Science and technology effectively and critically, showing responsibility to the environment and
health of others, e.g. use appropriate computer software for cost calculation, data capturing and
document storage purposes.
UNIT STANDARD CCFO DEMONSTRATING

Demonstrate an understanding of the world as a set of interrelated systems by recognising that problem-
solving contexts do not exist in isolation, e.g. in keeping in mind that accurate costing of services effects
the financial well being of not only the municipality but the country as a whole.
UNIT STANDARD CCFO CONTRIBUTING

Participating as responsible citizens in the life of local, national and global communities, e.g. acting as
custodian of ethical behaviour and maintaining a high Level of commitment to providing accurate costing
input into the budgeting process.
UNIT STANDARD ASSESSOR CRITERIA

N/A
UNIT STANDARD NOTES

N/A
QUALIFICATIONS UTILISING THIS UNIT STANDARD:

PRE-2009 QUALITY
NQF END
ID QUALIFICATION TITLE NQF STATUS ASSURING
LEVEL DATE
LEVEL BODY
Level
Certificate: Municipal 2018-
Core 48965 Level 6 TBA: Pre- Reregistered LG SETA
Financial Management 06-30
2009 was
58
L6
National Diploma: Public
NQF Level 2018-
Elective 49554 Finance Management and Level 5 Reregistered LG SETA
05 06-30
Administration
59

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2016

APPLY COSTING PRINCIPLES TO MUNICIPAL OPERATIONAL AND

NameContact AddressTelephone (H)Telephone (W)FacsimileCellularE-mail

1.1 The Programme Pack

1.2 Target group / Occupational link

The qualifying learner will be able to:

1.3 Entry requirements

 The unit costing approach to service delivery is explained in a municipal

Specific Outcome 2: Identify the strengths and weaknesses of recognised

 The concept of efficiency is interpreted within the framework of service

 The importance of apportioning overhead costs to a specific service is

Specific Outcome 4: Recognise the importance of classifying costs by

 Cost behaviour is recognised within a local government context.

Specific Outcome 5: Identify difficulties of classifying costs by behaviour in a

Specific Outcome 6: Understand the benefits and limitations of classifying

 Cost information for the decision-making in a municipality is analysed in

2.1 Learning Activities

2.2 Assessment Instrument

2.3 Fundamentals Assessment - CAT

It is acknowledged that many of the candidates will have come from

CAT is the acronym for “Credit Accumulation Transfer”, and is based in a

The following is the model proposed by SAQA:

National Qualification Literacy / Numeracy / 2nd

Appeals & Disputes

Apply costing 11 110 4 17hrs 16 hrs 39 hrs 38 hrs 110 hrs

3.2 Facilitator Credentials

3.3 Facilitator Conduct

 Assessment Support – Facilitators are required to provide support to learners in identifying

3.5 Standard Administration

Please take a moment to familiarize yourself with the requirements.

4.2 Facilitator Administration

4.3 Facilitator Report

Learning Apply costing Facilitator

No Criteria / Question Above Standard

Spelling/ Grammatical Errors

Additional Comments on Learning Material

4.4 Attendance Register

Programme Name Facilitator Name

Name & Surname ID Number Contact Details 1 2 3 4 5

This Facilitators Guide is a resource, which will help you to:

 Understand the programme, as well as its objectives, characteristics and the

This will help you to:

Learning Activities Exercises

Role-plays Case Studies

Outcomes Assessment Criteria

Steps to Follow Glossary

You will be required to be proficient in the following competencies.

2. Management of the Group:

3. Management of exercises/skills practices:

5. Facilitation of Skills Transfer:

 Give an overview of the feedback process at the beginning of the session.

Shift the Focus of Power:

As much as possible, be specific when you are giving feedback.

Behaviour Analysis feedback is essentially solution-centred. Put it another way; Behaviour

INTEGRATE TO OTHER POINTS:

 It shows you have heard and respected what they said.

Confirm the training session by showing the OHT.

Exercise - Ice Breaker

DATE: _________________ TOTAL SCORED: _/40