Item Segment – Non-current Assets Change Posting ... - MFMA

(1)

mSCOA Version 5.4 and changes to the classification framework

Presented by National Treasury: Chief Directorate Local Government Budget Analysis | 22 June 2015

(2)

Costing Segment

Change Posting Level

and Breakdown

Principle/

Application Definition Account

Split between “recoveries and charges” Yes Yes Add

(3)

Function Segment

Principle/

Change “applicability” Non-core – Community and Social Services for:

•Libraries and Archives

•Museums and Art Galleries

Yes District

Municipalitie s

Yes Add

Consider changing:

•Waste Management – Street Cleansing

•Public Safety – Cleansing [Research needed]

(4)

Funding Segment

Principle/

Accounts changed for Equitable Share:

•Basic Services

•Institutional Component

•Community Services

•Revenue Adjustment

•Correction and Stabilisation Factor

Yes Add

Research/Information needed:

•Posting Level District Municipality and Provincial Government

•DORA – Capital versus Operational

(5)

Item Segment – Liabilities

Principle/

Current

Transfers and Subsidies –unspecified” Breakdown Yes Added

Defined Benefit Obligations Added

Pending: VAT Accounts Expand?

Current and Non-current

Borrowing: "non-annuity loans” Deleted

Other Current Financial Liabilities:

Concessionary Loans Yes Added

Provision and Impairment:

•Litigation

•Trading Services

•“Bonus” Yes

Added Deleted

Description

(6)

Item Segment – Current Assets

Principle/

Current Portion of Non-current

Receivables/Non-current Receivables:

Staff Loans/Recoveries

Description

Receivables from Non-exchange:

Monthly Billing changed to include:

“interest”.

Added

Trade and Other Receivables from Exchange Transactions:

•Trading and Customer Service Debtors

•Intercompany/Parent Subsidiary Transactions – Impairment

•Deposits

•Transfers and Subsidies - Unspecified

Change

Added

(7)

Item Segment – Non-current Assets

Principle/

Investments: Listed/Unlisted Bonds and

Securities Description

Receivables from Non-exchange:

Monthly Billing changed to include:

“interest”.

Added

Trade and Other Receivables from Exchange Transactions:

•Trading and Customer Service Debtors

•Intercompany/Parent Subsidiary Transactions – Impairment

•Deposits

•Transfers and Subsidies - Unspecified

Change

Added

(8)

Item Segment – Expenditure

Principle/

Bulk Purchase: Green Electricity and

Renewable Description

Outside Services:

•Accounting and Auditing

•Transport Services Description

Added

Consultants and Professional Services:

Accounting and Auditing Description

Contractors

•Maintenance and Unspecified Assets

•Electrical Yes

Yes

•Depreciation and Amortisation:

Infrastructure Electricity Description

(9)

Item Segment – Expenditure (Continue)

Principle/

Inventory:

•Consumables

•Agricultural

Added/

Deleted

Operational Cost:

•Cash Discount/Insurance Claims/Office Decorations

•Indigent Relief/Hire Charges

•Statutory Payments other than Income Taxes

Changed

Added

Description

Transfers and Subsidies: Unspecified ^Added

(10)

Item Segment – Project

Principle/

Buildings changed to include “other

structures” Description

Operating Cost Changed

(11)

Item Segment – Revenue (Continue)

Principle/

Fines, Penalties and Forfeits: Fines –

Pound Fees Changed

Licences or Permits:

•Activities on Public Roads

•Drivers Licence Application and Duplicate Licence

•Learner Licence Application

Deleted/

Combined

•Transfers and Subsidies: Unspecified ^Added

(12)

General

b re ak d o w n  R ec o n sid er p o st in g a n d

 A p p lic at io n 20 15 in co rp o ra te d u n til 1 1 J u n e  C h an g es h av e b ee n

fo r i n flu en cin g V er sio n 5 .4  FA Q lo ck d o w n 3 J u ly 2 01 5

24 J u ly 2 01 5  V er sio n 5 .4 to b e r ele as ed b y

(13)

MSCOA : Position Paper Status Report

(14)

Discussion Paper/Position Paper

Discussion Paper Position Paper

 No Legal Status

 Part of the “Project Documents”

 Not replacing NT guidelines, circulars, practice notes or implementation guidelines

 Consolidate information for various source

 Checklist for compliance to the Standards of GRAP

 Recording revision of reporting

 Linking mSCOA Posting Level accounts

 FAQ to date not concluded addressed

 Internal acceptance prior to consultation with stakeholders

 End result may result in revision of NT documents or incorporation in circulars

 No Legal Status

 Part of the “Project Documents”

 Not replacing NT guidelines, circulars, practice notes or implementation guidelines

 Consolidate information for various sources/opinions/views

 Defining terminology relating to the subject matter

 FAQ to date not concluded addressed

 Document the position taken by National Treasury on subject matter

 Internal acceptance prior to consultation with stakeholders

 End result may result in revision of NT documents or incorporation in circulars

(15)

Discussion Paper and Status

15

Subject Matter Status Timeline for Completion

Employee Related Cost Approval by Technical Work

Group September 2015

Provisions, Contingent

Liabilities and Liabilities To be drafted September 2015

Inventory To be drafted September 2015

Transfers and Subsidies To be drafted September 2015 Exchange versus non-exchange

and related matters To be drafted September 2015

Fixed and Intangible Assets To be drafted September 2015

Reserves and Funds To be drafted September 2015

Any matters not listed To be drafted September 2015

Reports To be drafted October 2015

(16)

Position Paper and Status

16

Subject Matter Status Timeline for Completion

Short Codes and Mapping Finalised ICF 22 June 2015

Reporting including:

•General Ledger Detail

•Materiality and Reporting

•Comparatives and Restatements

•Correction of Prior Periods

•Municipal Entities

•Month and Year-end Closure

Partially Drafted

Additional sections to Technical Work Group

August 2015

NERSA October 2015

DWA including Water Balance

Reporting October 2015

VAT October 2015

Cost of Free Basic Services and Revenue Cost of Free Basic Services

Research taking place August 2015