mSCOA Version 5.4 and Changes to Classification Framework
Presented by National Treasury, this document discusses the updates to the mSCOA Version 5.4 and changes to the classification framework in the context of local government budget analysis. It covers various segments such as Costing, Function, Funding, Item Segment Liabilities, and Current Assets, providing insights into principle applications, account splits, applicability changes, and breakdowns at different posting levels. The content highlights adjustments in different financial categories and suggests considerations for improving financial management processes.
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mSCOA Version 5.4 and changes to the classification framework Presented by National Treasury: Chief Directorate Local Government Budget Analysis | 22 June 2015
Costing Segment Change Posting Level and Breakdown Yes Principle/ Application Definition Account Split between recoveries and charges Yes Add
Function Segment Change Posting Level and Breakdown Principle/ Application Definition Account Change applicability Non-core Community and Social Services for: Libraries and Archives Museums and Art Galleries Yes District Municipaliti es Yes Add Consider changing: Waste Management Street Cleansing Public Safety Cleansing [Research needed]
Funding Segment Change Posting Level and Breakdown Principle/ Application Definition Account Accounts changed for Equitable Share: Basic Services Institutional Component Community Services Revenue Adjustment Correction and Stabilisation Factor Research/Information needed: Posting Level District Municipality and Provincial Government DORA Capital versus Operational Yes Add
Item Segment Liabilities Change Posting Level and Breakdown Principle/ Application Definition Account Current Transfers and Subsidies unspecified Defined Benefit Obligations Pending: VAT Accounts Current and Non-current Breakdown Yes Added Added Expand? Borrowing: "non-annuity loans Deleted Other Current Financial Liabilities: Concessionary Loans Yes Added Provision and Impairment: Litigation Trading Services Bonus Added Deleted Description Yes
Item Segment Current Assets Change Posting Level and Breakdown Principle/ Application Definition Account Current Portion of Non-current Receivables/Non-current Receivables: Staff Loans/Recoveries Receivables from Non-exchange: Monthly Billing changed to include: interest . Trade and Other Receivables from Exchange Transactions: Trading and Customer Service Debtors Intercompany/Parent Subsidiary Transactions Impairment Deposits Transfers and Subsidies - Unspecified Description Added Change Added
Item Segment Non-current Assets Change Posting Level and Breakdown Principle/ Application Definition Account Investments: Listed/Unlisted Bonds and Securities Receivables from Non-exchange: Monthly Billing changed to include: interest . Trade and Other Receivables from Exchange Transactions: Trading and Customer Service Debtors Intercompany/Parent Subsidiary Transactions Impairment Deposits Transfers and Subsidies - Unspecified Description Added Change Added
Item Segment Expenditure Change Posting Level and Breakdown Principle/ Application Definition Account Bulk Purchase: Green Electricity and Renewable Outside Services: Accounting and Auditing Transport Services Description Description Added Consultants and Professional Services: Accounting and Auditing Description Contractors Maintenance and Unspecified Assets Electrical Yes Yes Depreciation and Amortisation: Infrastructure Electricity Description
Item Segment Expenditure (Continue) Change Posting Level and Breakdown Principle/ Application Definition Account Inventory: Consumables Agricultural Operational Cost: Cash Discount/Insurance Claims/Office Decorations Indigent Relief/Hire Charges Statutory Payments other than Income Taxes Transfers and Subsidies: Unspecified Added/Del eted Changed Added Description Added
Item Segment Project Change Posting Level and Breakdown Principle/ Application Definition Account Description Buildings changed to include other structures Operating Cost Changed
Item Segment Revenue (Continue) Change Posting Level and Breakdown Principle/ Application Definition Account Fines, Penalties and Forfeits: Fines Pound Fees Licences or Permits: Activities on Public Roads Drivers Licence Application and Duplicate Licence Learner Licence Application Transfers and Subsidies: Unspecified Changed Deleted/ Combined Added
General Reconsider posting and breakdown Application Changes have been incorporated until 11 June 2015 FAQ lock down 3 July 2015 for influencing Version 5.4 Version 5.4 to be released by 24 July 2015
Discussion Paper/Position Paper Discussion Paper Position Paper 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, 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
Discussion Paper and Status Subject Matter Status Timeline for Completion Employee Related Cost Approval by Technical Work Group To be drafted September 2015 Provisions, Contingent Liabilities and Liabilities Inventory Transfers and Subsidies September 2015 To be drafted To be drafted September 2015 September 2015 Exchange versus non- exchange and related matters Fixed and Intangible Assets To be drafted To be drafted September 2015 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 15 15
Position Paper and Status 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 NERSA Partially Drafted Additional sections to Technical Work Group August 2015 October 2015 DWA including Water Balance Reporting VAT October 2015 October 2015 Cost of Free Basic Services and Revenue Cost of Free Basic Services Research taking place August 2015 16 16
