Summary presentation:
Q & A Session
Presented by National Treasury
Remaining metro’s to implement (pilot) mSCOA and project initiation for the
non-piloting municipalities Piloting commencement
with 9 pilot
municipalities (local and districts) and 4 Metro’s
(City of Cape Town, Ekurhuleni, Mangaung and Buffalo City) – Phased
over 2015/16 and 2016/17)
2015
Vendors were briefed as to development of mSCOA and initial evaluations of system
functionality
.Regulation issued and commissioning of mSCOA Project Phase 4: Change management and
piloting including identification of pilots
Kick off engagements with municipalities, vendors and
other stakeholders
2011 2014
2010
2016
Ensuring that piloting municipalities and system functionality is aligned to the compliance requirements of the
Regulation will create an enabling environment for the
roll out to non-piloting municipalities
278 municipalities fully
2017
mSCOA Project Phases: The journey to the
checkered flag…
Stand ard Cha rt of Acco unts
Improved Service Delivery
3
The Local Government Accountability Cycle and mSCOA
IDP y ateg Str ear 5 Y •
Budget • 3 Year
SDBIP • Annual Plan to Implement
IYR • Monitoring
AFS • Oversight
Annual Report
The IDP (unlimited needs and wants) must directly inform the formulation of the budget (limited basket of resources).
mSCOA requires budget formulation (as per the MBRR) from a project level (The Project Segment is the departure point in formulating a budget across the 7segments).
Budget implementation (transact & report)
• MBRR and reporting to LG Database (6 regulated segments)
• Formulate implementation plan e.g. regional perspective, funding, cash flow breakdown etc.
• In-year reporting (focus MBRR), MFMA s. 71 &
72.
• Budget to directly inform implementation and transactional environment.
• Seamless alignment.
• One version of the truth
• Evidence based financial management in real time.
• Transactional validation and audit trails.
Accountability Reporting
• Incorporate GRAP
• Improve standardisation
• Improve audit process across 278 munis.
• Consistent comparability
• Transparency
mSCOA provides for alignment of the accountability cycle;
Improved transparency and accountability;
Classification based on leading practice and internal standards;
Consistent aggregation of municipal financial info across the entire accountability cycle
Whole of government reporting
What Segments are Required
Project: This segment is to ensure that all projects in the
IDP is aligned to budgets. Function: Here we align with the IMF, GFS, Constitution and Municipal Structures act to “Departments and Votes”
Item: This is the Accountants segment and is informed by GRAP, IFRS and accounting standards. All financial reporting and
reconciliations happen in this segment.
Fund: National and Provincial Government are on Modified cash and Local government “Item are on Accrual” Here we align to Payments and receipts and in essence achieve cash flow here.
Region: Communities need to feel and see delivery, Only through planning and physical delivery can this be communicated
effectively.
Costing: The costing segment will grow as maturity levels grow initially a allocation of cost from Administrative functions to
Commercial services will suffice.
Municipal Standard
Classification: MSC is a non
regulated segment and will
probably still represent the
MFMA vote.
Consolidated Evaluation by PT’s/Advisors
33. 88 05 30 40 78 99 6
Live on mSCOA Started implementing with IDP budget Not implementing yet but will be live 1 July
2017 with full IDP linked budget
Not implementing yet but will be live 1 July 2017 with budget without fill IDP
Chances are high that municipality will NOT meet 1 July 2017 deadline
0 20 40 60 80 100 120
19
59
109 26
46
Vendor / Province Assessment
• Live on mSCOA
• Started implementing with IDP budget module
• Not implementing yet but will be live 1 July 2017 with full IDP linked budget
• Not implementing yet but will be live 1 July 2017 without full IDP
• Chances are high that the municipality will NOT meet the 1 July 2017 deadline
13%
30%
16%
16%
25% 8%
24%
40%
8%
19%
Vendors Provinces
Implementing the new chart of accounts and carry over of the legacy items opening balances.
Note restatements for 2018/19 year.
March till June
Budget process:
• Populate the Municipal running cost and Maintenance & repair Projects ;
• Functions will need to link the required Items to deliver the Projects;
• Align the IDP with available resources ( Funding &
Revenue Items ); and
• Determine the Costing module and finalize tariffs.
Finalization of the chart
• Budget Approval process
• Create SDBIP based on Budget.
IDP process:
Needs to begins with in the prescribed period from 3 August 2016.
January Till March October till
November July till
September
1 July 2017
mSCOA Aligned to MFMA Calendar: The journey to success…
7
Community Participation:
• Identify Projects (Capital and typical work streams);
• Identify Regions of these projects; and
• Identify the Function that need to
deliver the projects.
Correction of prior year errors, Implementing the audit outcomes, Preparation and further
developments for the 2
ndmSCOA year.
30 June
Ongoing management and review of posting, correction of miss-allocations and performance against projects = IDP.
Finalization of integration of subsystems.
Development of costing.
Institutionalization of business processes and SOPs.
First mSCOA year end and AFS.
Annual report, performance against projects = IDP.
Audit of mSCOA compliance by AGSA.
Transacting on the full mSCOA chart, preparation for submission of first data strings at month end
2017/
2018 30
September 2017
1 July 2017
1 July 2018
mSCOA Aligned to MFMA Calendar: The way forward: Institutionalization
Submission of the first quarterly report;
Previous year audit
Thank you
9
QUESTIONS?
