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: 

Report findings of debtor administration review to inform future credit decisions 
SAQA US ID UNIT STANDARD TITLE
12740  Report findings of debtor administration review to inform future credit decisions 
ORIGINATOR
SGB Banking and Micro Finance 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
BANKSETA - Banking Sector Education and Training Authority 
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 4  NQF Level 04  12 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
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 
This unit standard is intended for individuals in a financier's credit control environment.

Persons credited with this unit standard will be able to review documentation, specify current findings, highlight risks and draft report. 

LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
Open. 

Specific Outcomes and Assessment Criteria: 

SPECIFIC OUTCOME 1 
Review documentation 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1.The previous debtor analysis report is obtained and reviewed to identify trends and recurring problems in line with the factoring house's policy and procedure. 

ASSESSMENT CRITERION 2 
2.The current and previous age analysis reports are obtained and reviewed to identify movement of debtors over time in line with generally accepted accounting practice and according to the factoring house's policy and procedure. 

ASSESSMENT CRITERION 3 
3.The current supplier management accounts are obtained and reviewed to establish cash flow stability of supplier in line with generally accepted accounting practice and according to the factoring house's policy and procedure. 

ASSESSMENT CRITERION 4 
4.The details of the debtor verification process are reviewed in line with generally accepted accounting practice and according to the factoring house's policy and procedure. 

ASSESSMENT CRITERION 5 
5.The details of evaluation of debtor administration are reviewed in line with generally accepted accounting practice and according to the factoring house's policy and procedure. 

SPECIFIC OUTCOME 2 
Explain current findings. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1.The credit risks associated with the inadequate debtor administration are understood and explained according to factoring requirements and in line with the factoring house's policy and procedure. 

ASSESSMENT CRITERION 2 
2.The findings associated with debtors verified in detail are explained according to factoring requirements and in line with the factoring house's policy and procedure. 
ASSESSMENT CRITERION RANGE 
Selection and efficacy of sample, accuracy and integrity of the debtor records, differences identified, differences traced. Evidence of competence for two elements of the range is required.
 

ASSESSMENT CRITERION 3 
3.The findings associated with the evaluation of debtor administration are explained according to factoring requirements and in line with the factoring house's policy and procedure. 
ASSESSMENT CRITERION RANGE 
Paper flow of administration as a whole, credit control, credit note and claim procedure, bad debt management and control. Evidence of competence across the entire range is required.
 

ASSESSMENT CRITERION 4 
4.The findings associated with the evaluation of creditor payments are explained according to factoring requirements and in line with the factoring house's policy and procedure. 

ASSESSMENT CRITERION 5 
5.The findings associated with the evaluation of statutory payments are explained according to factoring requirements and in line with the factoring house's policy and procedure. 

SPECIFIC OUTCOME 3 
Highlight risks. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1.The potential for fraud in debtor administration is understood and explained according to factoring requirements and in line with the factoring house's policy. 

ASSESSMENT CRITERION 2 
2.The investigation process applied to anomalies is specified and explained according to factoring requirements and in line with the factoring house's policy and procedure. 

ASSESSMENT CRITERION 3 
3.The problems identified during the review are specified and the problems are explained according to factoring requirements and in line with the factoring house's policy and procedure. 

ASSESSMENT CRITERION 4 
4.The risk factors are identified and quantified in terms of risk to the existing exposure according to factoring requirements and in line with the factoring house's policy and procedure. 

ASSESSMENT CRITERION 5 
5.Action taken to resolve problems is specified and explained according to factoring requirements and in line with the factoring house's policy and procedure. 

ASSESSMENT CRITERION 6 
6.The assessor's views regarding the risk implications of problems identified are explained according to factoring requirements and in line with the factoring house's credit policy and procedure. 

SPECIFIC OUTCOME 4 
Draft Report. 

ASSESSMENT CRITERIA
 

ASSESSMENT CRITERION 1 
1.An integrated view of the supplier's data integrity and debtor administration is compiled according to the specific house's factoring requirements. 

ASSESSMENT CRITERION 2 
2.The key risks are succinctly summarised and clearly supported by the evidence collected during the review according to the assessor's analysis, the specific house's factoring requirements and in line with the credit reporting policy and procedure. 

ASSESSMENT CRITERION 3 
3.The short-term implications of the data integrity, debtor administration and highlighted risks are succinctly summarised according to the assessor's analysis and the specific house's credit reporting requirements. 

ASSESSMENT CRITERION 4 
4.The assessor's views/ comments regarding risk, and recommended action are reported according to the analysis and in line with credit policy and procedure. 

ASSESSMENT CRITERION 5 
5.The report is drafted in the manner required by the factoring house. 

ASSESSMENT CRITERION 6 
6.The report is distributed to the relevant parties in the manner required by the factoring house according to company policy and procedure. 

ASSESSMENT CRITERION 7 
7.The report is correctly filed for further reference in the manner required by the factoring house. 


UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
1.Anyone assessing a learner against this unit standard must be registered as an assessor with the relevant ETQA.
2.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.
3.Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines in the relevant qualification and the agreed ETQA procedures.

Therefore, anyone wishing to be assessed against this unit standard may apply to be assessed by any assessment agency, assessor or provider institution that is accredited by the relevant ETQA. 

UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
  • General knowledge of the factoring industry
  • Knowledge of the company's range of products, and the associated rules and regulations relating to factoring finance.
  • Operating and computer systems knowledge sufficient to locate the necessary information and complete the task/function
  • General understanding of the specific risks, and relevant policies relating to factoring transactions. 


  • Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO COLLECTING 
  • To collect, organise and critically evaluate information when reviewing the documentation and explaining the current findings to inform future credit decisions. 

  • UNIT STANDARD CCFO COMMUNICATING 
  • To communicate effectively both verbally and in writing when drafting the report of findings of a debtor administration review. 

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

    UNIT STANDARD NOTES 
    Legal Requirements

    All procedures must meet recognised codes of practice as well as obligations required by current legislation within South Africa and within the normal parameters of the defined job/task.

    Terminology

    Supplier - A term used in factoring to refer to the party who supplies the invoices for discounting. The term is used to distinguish this party from the terms used for debtors and creditors. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  20185   Further Education and Training Certificate: Banking  Level 4  NQF Level 04  Reregistered  2023-06-30  BANKSETA 


    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.
     
    1. Absa Learning & Development 
    2. Bidvest Bank 
    3. Chartall Business College 
    4. Cornerstone Performance Solutions (Pty) Ltd 
    5. Felix Risk Training Consultants 
    6. Firstrand Bank - Benmore 
    7. Nedbank Ltd 
    8. The Facilitation Workshop 



    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.