The introduction of this dimension into the mSCOA classification framework facilitates aggregated government reporting on a cash basis. The “Finance” segment in the financial system identifies the various sources of funding available to municipalities to finance expenditures related to the operation of the municipality, both for capital expenditures and operational expenditures. The distinction between "operating and capital" funding sources was introduced in version 6.1 of the mSCOA chart and is still used in the 6.5 chart.
In addition, brief comments on any proposed changes to a circular or guidance (issued by the National Treasury) following the mSCOA regulation are included in the "Proposed Change Column" of the table. NERSA is the custodian of the NERSA regulatory reporting requirements and will oversee and enforce their requirements contained in the relevant sets of legislation. Important in the selection of accounts to be activated within the system application is the municipality's readiness to meet the DWS reporting requirements.
DWS is the custodian of the reporting requirements and will oversee and enforce their requirements included in the relevant sets of legislation. The municipality is obliged to indicate the name of the allocations as stipulated in the respective DORA and request the mSCOA technical committee to provide the account in the classification. Municipalities in need of such accounts must provide the policy decision with the name of the fund and the source of cash support to the mSCOA Technical Committee (via the mSCOA Frequently Asked Questions (FAQ) database) to create these accounts in the next annual mSCOA publication.
If more accounts are required than are currently provided for, a request in this regard should be made (through the mSCOA Frequently Asked Questions (FAQ) database) to the mSCOA Technical Committee to be provided for in the next annual mSCOA release.
Legislative and Regulatory Requirements
These accounts do provide a "GUID" and the "uniqueness" defined in the Local Government Database and Reporting System (LGDRS) by the "municipal code, reporting period and GUID".
Booking level accounts are added with "GUIDs". Provision has been made to include breakdown level detail by changing the account description available in mSCOA for this purpose. Pending the outcome of the Standard Operating Procedures Project conducted by the National Treasury: Office of the Accountant General, this table may need to be expanded to include business cycles and activities.
Category Links and Business Rules
Link the funding source to all accounts to ensure multidimensional use of the chart. The Costing segment and the specific transactions related to the Funding segment must be classified in the “costing” category. In-kind allocation is not represented by "cash", but can contribute to a specific fund and project and thus be considered "funding".
When a fund/income or liability related to another segment is updated, all segments are updated. Monetary backed reserves – Short term and long term investments should be established in. When adding/changing these accounts, the information should automatically update in the "Fund" segment.
Discussion of the Funding Segment Operational
Operational - This group of accounts provides funds received from "Transfers and Subsidies" for operational purposes in both "risk and cash" value. Grants in kind - this group of accounts provides funds received from "transfers and subsidies". Foreign Governments and International Organizations: Operating funds received "in kind" from foreign governments and international organizations.
Monetary Allocations - This group of accounts provides for funds received from "transfers and subsidies" for operational purposes in "monetary value". Foreign government and international organizations: Operating funds received (monetary value) from foreign government and international organizations. The details for departmental agencies and accounts are included as provided in the SCOA for departments, as little information relevant to municipalities is available.
The details for foreign government and international organizations are included as set out in the SCOA for departments, as there is little information relevant to municipalities. The account "Unspecified" set at a non-posting level with a requirement for the municipality to add details to determine the "posting level" allows for allocations received not specifically. The details for households are included as set out in the SCOA for wards, as there is little information relevant to municipalities.
The “Unspecified” account set at a non-posting level with a requirement that the municipality add details to determine the “posting level” allows for allocations received that are not specifically listed in the mSCOA release. The details for non-profit institutions are included as set out in the SCOA for departments, as there is little information relevant to municipalities. The "Unspecified" account set to a non-posting level with a requirement that the council add details to determine.
The details for Private Enterprises are included as provided in the SCOA for Departments as little information relevant to municipalities is available. The account "Unspecified" which is set at a non-placement level with a requirement that the municipality add detail to determine the "placement level" allows for grant receipt not specifically provided for in the mSCOA exemption. The details for Public Corporations are included as provided in the SCOA for Departments as little information relevant to municipalities is available.
The details for higher education institutions are included as set out in the SCOA for departments, as there is little information relevant to municipalities. Unspecified” set at a non-posting level with a requirement that the municipality add details to determine the “posting level” provides allocation received that is not specifically stated in the mSCOA release.
Capital
The municipality must change the account description by including the account number or reference number of a particular instrument. The account configuration must match the Current Borrowing section in the Item: Liabilities segment. Capital: This group of accounts provides funds received from "transfers and grants" for capital purposes, both "in kind and in cash".
Foreign Government and International Organizations: Capital funds received "in kind" from foreign governments and international organizations. Monetary Allocations: This group of accounts allows funds received from “transfers and subsidies” for capital purposes in “monetary value”. Foreign Government and International Organizations: Capital funds received (monetary value) from foreign governments and international organizations.
The municipality must change the account description by including the account number or reference number for the specific instrument. The account creation must comply with the current borrowing section in the Item: Liabilities segment.
Non-funding Transactions
Annual Maintenance and Matters Pending Annual Maintenance
Matters Pending