Submissions to the LGDRS 10 November 2016
Presented by National Treasury: Elsabé Rossouw
CURRENT FINANCIAL STATISTICS REPORTING
LGDRS is used by
NT:LGBA for the financial oversight of all municipalities
PTs: for the financial oversight of provincial delegated municipalities External stakeholders: StatsSA, SARB, DPME, DoCG, SALGA, MISA, AG and SARS
Universities and researchers Other sectoral departments
It is fully mobile and accessible through secure internet.
Security profiles restrict access to all data.
Portals developed: (GIS)
Collection method
Current collection and processing
method
New collection method for
submissions
Submission of Data Files
Data processing phases
LG Data and Document Upload Portal
• Mandatory input values for data file uploads:
• Attach the data file.
• Only pipe delimited text files(.txt) may be uploaded,
• Select the Period Description <from the drop down list>
• Select the Financial Year <Ditto>
• Tick the applicable File Format (GUID or Long code)
• SAVE
Batch Data Files Upload Requirements
Expected content of batch submissions
The format of the data extraction file transaction records,(data strings):
Before the mSCOA data files can be moved from the LG Upload portal to the reporting tables, the data has to meet the following requirements:
• The data extraction file must be pipe delimited (|)
• No headings or column headings are allowed
• The 6 segments, i.e. Project, Function, Item, Fund, Costing and Region may be either in the form of the “GUID” or the “Long code”
• The detail line(row) must comprise of the following elements/data fields and must be in the following sequence:
i. Demarcation code (This leading code identifies the transacting municipality) ii. Financial Year (The year, in which the financial period ends, for example, 2016/17 will be 2017)
iii. Transaction Category(Type of transaction provide for the distinction of financial transactions within periods in a particular financial year)
Expected content of batch submissions
iv. Project segment (GUID or long code) v. Function segment (GUID or long code) vi. Item segment (GUID or long code)
vii. Fund segment (GUID or long code) viii. Costing segment (GUID or long code) ix. Region segment (GUID or long code) x. Amount
(Amount provides the monetary value of the transaction.
Due to the closing balance requirements on control accounts, the amount should be informed by the net movement and will only
balance to zero as per general ledger if closing balances are omitted.
No cents are allowed in the amounts field, amounts should be rounded Credit amounts must have a preceding “-“ sign).
Monitoring submissions by
municipalities
Reports available on LGDRS
Automated mSCOA tables
mSCOA Structure Maintenance
• The mSCOA tables were initially developed and maintained in Microsoft Excel
• These tables were moved from Excel to a SQL database and audit trails will be kept
• The current mSCOA version is Version 5.5 and has been
replaced by version 6.1 after successful technical testing by the vendors.
• The automated mSCOA structure
maintenance has a sequential
Archived ver. 5 Archived ver. 5.1 Archived ver. 5.2 Archived ver. 5.3 Archived ver. 5.4 take 1 Archived ver. 5.4 take 2 Archived ver. 5.4 take 3 Archived ver. 5.4 take 4
mSCOA Structure Maintenance
Validating the submissions
• At the municipality:
• BEFORE any financial dataset is submitted by the MM, the following checks MUST be done:
– The financial reporting period MUST be closed
– The financial system must provide management reports and MBRR schedule extracts on the reporting period
• I would prefer that a formal signed copy of the schedule be stored at the municipality for audit purposes
• Only then can the button be pressed to submit the financial dataset
Validating the submissions
• In the LGDRS:
• The format of the financial dataset will be validated first – Check municipal code / year / period
– All segments represented – No duplicates
– Correct version of framework for the financial year used
• Then the content will be checked.
• If all are OK it will be accepted into the mSCOA Reporting database.
Producing publications
• For all publications the LGDRS will be the source
– The current reporting database will remain in place and will remain functional until the mSCOA reporting is of good enough quality to become the main source of information
– Therefore the Appendix B returns must still be submitted until the vendors are able to prepare mSCOA submissions that pass the validation tests
– The switch over will be done FOR ALL at the beginning of a financial year WHEN ALL ARE ON THE SAME LEVEL
– The MBRR schedules will be used as the benchmark:
• Compare A1/C schedule based on Appendix B returns To
2016 MTBPS - LAUNCHES OPEN LOCAL GOVERNMENT FINANCIAL DATA PORTAL –
“MUNICIPAL MONEY”
2016 MTBPS - LAUNCHES OPEN LOCAL GOVERNMENT FINANCIAL
DATA PORTAL – “MUNICIPAL MONEY”
Latest statistics of the use of Municipal Money
• 6,988 users
• The average user session duration was 3:31 minutes
• 5,326 users were from RSA - 52% of which are located in Gauteng and 31%
in the Western Cape
• The top 10 municipal profile pages viewed, in order: CPT, JHB, TSH,
Hessequa, MAN, Nama Khoi, Cederberg, Sunday’s River, Oudtshoorn and ETH
Municipal links
• www.municipalmoney.gov.za
• municipaldata.treasury.gov.za
Phase II of Municipal Money
• Enhancements have already been requested:
• Better comparatives on tariffs and household bills (SA13a+b, SA14)
• Tracking of capital projects of municipalities (SA36)
• Ward based data (Project and Region segments)
• The Project Steering Committee will meet at the end of this month to discuss new focus areas based on feedback from citizens
Changes to the schedules and Section
71 reporting
mSCOA - PROPOSAL FOR THE REVISION OF THE BUDGET REPORTING TABLES
Table
Reference Description of Table Reporting
Phase Comments Discussion
Paper/Position Paper
A1 Budget Summary Phase 1 N/a N/a
A2
[1]Budgeted Financial Performance (Revenue and Expenditure by Function)
Phase 1 Included detail Fund
Classification in Table N/a
A2A
[2]Budgeted Financial Performance (Revenue and Expenditure by Function including Sub-function detail)
Phase 1
Reference to change to
“Municipal Standard Classification”.
N/a
A3
Budgeted Financial Performance (revenue and expenditure by standard classification [Vote])
Phase 1
Reference to change to
“Municipal Standard Classification”.
N/a
Line item not to be used:
Property Rates –
Penalties and Budgeted Financial Performance
mSCOA - PROPOSAL FOR THE REVISION OF THE BUDGET REPORTING TABLES
Layout to be revised for:
Property Rates
Service Charges –
Electricity Revenue
Service Charges –
Water Revenue
Sanitation
Charges – Sanitation Revenue
SA2 Phase 1
SA2
Consolidated Matrix Financial Performance Budget (Revenue Source/Expenditure Type and Department)
Phase 1
Line item for Property Rates – Penalties and Collection Charges not to be used
Line items for to be changed:
Call deposits < 90
days
Other current
investments > 90 days SA3 Supporting detail to Budgeted
Financial Position Phase 1 Discussion Paper 2:
Employee Related Cost SA1 Supporting detail to “Budgeted
Financial Performance” Phase 1 N/a
mSCOA - PROPOSAL FOR THE REVISION OF THE BUDGET REPORTING TABLES
SA4 Reconciliation of IDP Strategic
Objectives and Budget (Revenue) Phase 1 N/a N/a
SA5
Reconciliation of IDP Strategic Objectives and Budget (Operating Expenditure)
Phase 1 N/a N/a
SA6
Reconciliation of IDP Strategic Objectives and Budget (Capital Expenditure)
Phase 1 N/a N/a
SA7
Measurable Performance Objectives (By Municipal Standard
Classification)
Phase 1 N/a N/a
SA8 Performance Indicators and
Benchmarks Phase 1 Formula to be revised N/a
SA9 Social, Economic and Demographic
Statistics and Assumptions Phase 1 N/a N/a
mSCOA - PROPOSAL FOR THE REVISION OF THE BUDGET REPORTING TABLES
Agricultural
Properties
Other Charges
Multiple Purpose
Special Rating Areas
Small Holdings
Multiple Purpose
SA12b Property Rates by Category (Budget
Year) Phase 1 See above N/a
SA13 Service Tariffs by Category Phase 1 N/a N/a
SA14 Household Bills Phase 1 N/a N/a
SA15 Investment Particulars by Type Phase 1 N/a N/a
SA16 Investment Particulars by Maturity Phase 1 N/a N/a
Change description for:
Long-Term Loans
(annuity/reducing balance) to Annuity and Bullet Loans
SA17 Borrowing Phase 1 N/a
SA12a Property Rates by Category (Current
Year) Phase 1 N/a
mSCOA - PROPOSAL FOR THE REVISION OF THE BUDGET REPORTING TABLES
SA18 Transfers and Grants Receipts Phase 1 N/a N/a
SA19 Expenditure on Transfers and Grant
Programme Phase 1 N/a N/a
SA20 Reconciliation of Transfers, Grants
Receipts and Expenditure Phase 1 N/a N/a
SA21 Transfers and Grants made by the
Municipality Phase 1 N/a N/a
Summary of Councillor and Staff Benefits
[Limited to Staff Benefits]
SA23
Salaries, Allowances and Benefits (political office
bearers/councillors/senior manager
Phase 1 N/a N/a
SA24 Summary of Personnel Numbers Phase 1 N/a N/a
Consolidated Budget Monthly
SA22 Phase 1 N/a N/a
mSCOA - PROPOSAL FOR THE REVISION OF THE BUDGET REPORTING TABLES
SA26
Consolidated Budget Monthly Revenue and Expenditure by Municipal Standard Classification
Phase 1
Change heading to refer to Municipal Standard Classification
N/a
SA27
Consolidated Budget Monthly Revenue and Expenditure by Function
Phase 1 Replace with revised
function structure N/a SA28 Budgeted Monthly Capital
Expenditure (municipal vote) Phase 1 N/a N/a
SA29 Budgeted Monthly Capital
Expenditure (Function) Phase 1 Replace with revised
function structure N/a SA30 Budgeted Monthly Cash Flow Phase 1 See Changes to A4 N/a SA31 Aggregated Entity Budget Phase 1 See Changes to A4 N/a SA32 List of External Mechanisms Phase 1 See Changes to A4 N/a SA33 Contract having Future Budgetary
Implications Phase 1 See Changes to A4 N/a
mSCOA - PROPOSAL FOR THE REVISION OF THE BUDGET REPORTING TABLES
SA34a Capital Expenditure on New Assets
by Asset Class Phase 1 Revised N/a
SA34b Capital Expenditure on the Renewal
of Existing Assets by Asset Class Phase 1 See Changes to A4 N/a SA34c Repairs and Maintenance
Expenditure by Asset Class Phase 1 See Changes to A4 N/a SA34d Depreciation by Asset Class Phase 1 See Changes to A4 N/a SA34e Upgrading of Existing Assets Phase 1 See Changes to A4 N/a SA35
Future Financial Implications of the Capital Budget (by Municipal
Standard Classification)
Phase 1 N/a N/a
SA36 Detailed Capital Budget Phase 1 N/a N/a
SA37 Projects delayed from previous
financial years Phase 1 N/a N/a
What about the SDBIP?
Standard Chart of Accounts Improved Service Delivery
Local Government Accountability Cycle
IDP
• 5 Year StrategyBEP P
• Spatial transformati on plan &process
Budg et
• 3 Year BudgetSDBI P
• Annual Plan to
Implement
IYR
• Monitoring &Council Oversight
AFS
• Oversight• The IDP determines the strategy, objectives and service delivery targets for the
municipality
• mSCOA, creates the environment to enable the execution of the accountability cycle, from IDP to Annual Report
• mSCOA , if well implemented and managed, after future phases have been completed, will provide direct evidence in dashboard format, of the achievement of IDP strategy, objectives and service delivery targets in the municipality
• Greatly limits greatly unauthorised expenditure.
Format of the SDBIP
• Quarterly reporting schedule – Poor response
– Entry point at the municipality – Not aligned to municipal SDBIP
– Some provinces have given a framework
Provincial government
National government
Civil Society
Business
Municipal Activities and Processes Municipal Outputs
Functional Outcomes Impact
Integrated Outcomes
SDBIP
IDPs
GDS
Prototype framework of the SDBIP
• CSP Reporting indicator workgroup
• Top-down approach
• Prototype of framework to be discussed with cities beginning December
• Approved prototype will be part of the reporting pack
released in January
The way forward
• Assist municipalities to register to use the LG upload portal
• Assist to ensure all contact detail on the LGDRS is up to date
• Motivate municipalities to start using the LG upload portal for:
– Submission of documents
– Submission of financial batch files
• Note that until NT decides that the mSCOA batch submissions are of a good enough quality for publication purposes and that we have FULL
The way forward
• REMEMBER that the MBRR reporting requirements for the different schedules is still required. VERIFICATION will be done by the
municipality using these formats!!
• Ensure that reporting on a financial year is concluded in the same
version. Validation of submissions will be linked to the version prescribe to that financial year.
• Nominate a provincial representative to take part in the mSCOA Reporting Reference Group.
