mSCOA SEGMENTATION and the
TESTING OF YOUR DATA
Presented by: National Treasury
Background
• Previously no validation was done with the use of Items to the various cost centres;
• Funding for transactions were not clearly defined and mainly combined into one source of funding;
• Budgeting on mSCOA should be at an advanced stage and in the FULL
mSCOA segments.
What should we look for
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• Project segment is directly aligned to the IDP – Capital and Operating;
• Function segment implemented fully;
• Item segment correctly used, and correctly aligned to the other segments;
• Funding segment used at lowest level of the chart;
• Region segment utilised and not all done for whole of the municipality;
• Costing done at the municipality;
• General rules.
Rules – Project Segment
• Both Capital and Operational projects must be used;
• Capital projects can only have Item: Assets;
• Operation projects can only have Item: Expenditure;
• Default projects are for Revenue and non-cash transactions;
• Default projects may NOT have Item: Expenditure and Assets;
• Municipal running cost is only for the items required for the organisation to function, and not for any services that the municipality renders;
• Typical work streams must be utilised fully in the municipality;
• Repairs and Maintenance must be broken down to lowest project;
• Travel subsistence must be broken down to individual trips/seminars/workshops;
• Revenue forgone and cost of revenue projects must be used;
Rules – Function segment
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• Function segment must be used to the full extend;
• Remuneration of Councillors can only be against Function: Mayor and Council;
• Items generally specific for one function can only be against that function:
• Bulk purchase electricity => Function: Electricity;
Rules – Item segment(s)
• Salaries for management must be specified as per chart;
• Councillors remuneration must be specified as per chart;
• Revenue items must be against the relevant Function:
• Refuse Removal Fees => Function: Waste;
• Travel and Subsistence items must be broken down;
• Revenue forgone must have the correct segmentation;
Rules – Fund segment
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• Services should fund themselves –
• Align Funding to the Function segment;
• Equitable share must be broken down per item on the posting level;
• Grant funding should balance;
• Non-funding transactions will be investigated and cannot be used as default
Rules – Region segment
• Correct use of Region for the specific municipality;
• Use of head office and whole of municipality inline with actual expenditure;
• Revenue per ward;
• Capital projects per ward.
Rules – Costing segment
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• Costing segment must be used – other than Default;
• Default Costing may NOT have default expenditure or revenue;
• Charges and Recoveries should balance.
Rules – General
• Posting level;
• Use of all six segments;
• Projects must contain the GUID extensions;
• Trial balance must balance;
• BS and I&E must balance;
• Budgeting must be on BS accounts;
Excel tool to interrogate data - How
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• Text file containing the mSCOA chart
• Text file submitted to the LG Upload Portal – TABB or ORGB
• Create pivot tables to extract relevant information
Excel tool to interrogate data
MUNICIPALITY: WC044 PERIOD: 2016 TYPE: M07
Name (All) Name (All)
Year (All) Year (All)
Type (All) Type (All)
Name (All)
Row Labels Sum of Amount Row Labels Sum of Amount Year (All)
Assets 305,549,012 ITEM EXPENSE 106,902,889 Type (All)
Current Assets 295,413,321 ITEM REVENUE -133,333,690
Non-current Assets 10,135,691 Grand Total -26,430,801 Row Labels Sum of Amount
Liabilities -279,117,884 Assets 305,549,012
Current Liabilities -278,248,539 Expenditure 106,902,889
Non-current Liabilities -869,345 Gains and Losses -404
Gains and Losses -404 Liabilities -279,117,884
Disposal of Fixed and Intangible Assets -404 Revenue -133,333,690
Property Plant and Equipment -350 Grand Total -77
Biological Assets -54
Grand Total 26,430,724
There must NOT be any items called (blank).
(blank) means that the wrong version of the chart is being used.Change the version and "Refresh All".
STATEMENT OF FINANCIAL POSITION STATEMENT OF FINANCIAL PERFORMANCE TRIAL BALANCE
? BALANCE SHEET ? THESE TWO GRAND TOTALS SHOULD BE THE SAME EXCEPT SIGN
TB - MUST BE ZERO SMALL DIFFERENCE = ROUNDING
Excel tool to interrogate data – Project and Functions with Items
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Amount Column Labels
Row Labels Assets Expenditure Gains and Losses Liabilities Revenue
Capital 11,202,647
Default Transactions 294,346,365 905,362 -404 -279,117,884 -12,787,534
Operational 105,997,527 -120,546,156
Events and Organisations 37,008
Mayor and Council 37,008
Artists and Performers 37,008
Gender Development 15,663
Literacy Programmes 15,663
Event Promoters 15,663
Municipal Running Cost 93,452,059 -120,546,156
Pollution Control 42,765
Laboratory Services 42,765
Standard Rated 42,765
Sport Development and Sponsorships (Internal) 3,477
Youth Development 5,686
Literacy Programmes 5,686
Event Promoters 5,686
Valuation 32,469
Interns Compensation 21,094
Social Development Programme (Welfare) 4,149
Housing Projects 686,888
Project 407,045
Unplanned 10,341,978
Ward Initiatives 4,396
Budget and Treasury Office 70,582
Child Programmes 15,749
Pump Station Mechanical Works 402,670
Drinking Water Quality 8,951
Indigent and Cultural Management and Services 444,898
Excel tool to interrogate data –Function
Amount Column Labels
Row Labels Assets Expenditure Gains and Losses Liabilities Revenue
Bad Debts Written Off 513,669
Bulk Purchases Electricity
Electricity 28,202,302
Contra Accounts 12,054,232
Contracted Services 23,149,122
Current Assets 294,912,419
Current Liabilities -258,507,613
Default 11,386,805 -8,036,151
Depreciation and Amortisation -3,429
Employee Related Cost 31,937,120
Exchange Revenue -116,623,706
Interest Dividends and Rent on Land 545,554
Inventory Consumed 3,817,100
Non-current Assets 8,760,377
Non-current Liabilities -869,345
Non-exchange Revenue -20,727,828
Operating Leases 249,690
Operational Cost 3,853,106
Remuneration of Councillors Designation
Mayor and Council 1,882,428
Excel tool to interrogate data – Fund align to Function
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Amount Column Labels
Row Labels Assets Expenditure Gains and Losses Liabilities Revenue
Borrowing 2,530,896 869,345
Cash Backed Reserves 1,720,412
Revenue
General Revenue 2,784,538 24,318 1,162,220
Municipal Services
Electricity 33,230,831 -72,822,921
Electricity
Electricity 33,230,831 -72,822,921
Other (less material sources) -4,458,918
Waste 1,368,275 -36,905
Waste
Sewerage -26
Solid Waste Disposal (Landfill Sites) 17,323
Solid Waste Removal 266,178 -36,905
Street Cleaning 1,084,800
Waste Water 6,127,350 -7,583,963
Excel tool to interrogate data – Costing with Items
Amount Column Labels
Row Labels Assets Expenditure Gains and Losses Liabilities Revenue
Charges 11,386,805 -42,508,446
Electricity Consumption
Default 1,504,167
Prepaid -42,508,446
Operating 7,247,203
Refuse Removal 76,957
Sanitation Charges 206,677
Water Consumption 2,351,801
Recoveries 305,549,012 95,516,084 -404 -279,117,884 -90,825,244
Default 305,549,012 95,516,084 -404 -279,117,884 -83,480,193
Electricity Consumption
Default -5,500
Operating -7,247,203
Refuse Removal -36,905
Sanitation Charges -54,748
Procurement -695
Grand Total 305,549,012 106,902,889 -404 -279,117,884 -133,333,690
THANK YOU
