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
Split between “recoveries and
charges”
Yes
Principle/
Application
Definition
Account
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
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
Posting
Level and
Breakdown
Principle/
Application
Definition
Account
Yes
Add
Item Segment – Liabilities
Change
Posting
Level and
Breakdown
Principle/
Application
Definition
Account
Yes
Added
Current
Transfers and Subsidies –
unspecified”
Breakdown
Defined Benefit Obligations
Added
Pending: VAT Accounts
Expand?
Current and Non-current
Borrowing: "non-annuity loans”
Other Current Financial Liabilities:
Concessionary Loans
Provision and Impairment:
•Litigation
•Trading Services
•“Bonus”
Deleted
Yes
Added
Added
Deleted
Yes
Description
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
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
Item Segment – Non-current Assets
Change
Posting
Level and
Breakdown
Principle/
Application
Definition
Account
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
Item Segment – Expenditure
Change
Posting
Level and
Breakdown
Principle/
Application
Definition
Account
Description
Bulk Purchase: Green Electricity
and Renewable
Outside Services:
•Accounting and Auditing
•Transport Services
Description
Added
Consultants and Professional
Services: Accounting and Auditing
Description
Contractors
•Maintenance and Unspecified
Assets
•Electrical
•Depreciation and Amortisation:
Infrastructure Electricity
Yes
Yes
Description
Item Segment – Expenditure (Continue)
Change
Posting
Level and
Breakdown
Principle/
Application
Definition
Added/Del
eted
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
Account
Changed
Added
Description
Added
Item Segment – Project
Change
Posting
Level and
Breakdown
Principle/
Application
Definition
Buildings changed to include “other
structures”
Operating Cost
Account
Description
Changed
Item Segment – Revenue (Continue)
Change
Fines, Penalties and Forfeits: Fines
– Pound Fees
Posting
Level and
Breakdown
Principle/
Application
Definition
Account
Changed
Licences or Permits:
•Activities on Public Roads
•Drivers Licence Application and
Duplicate Licence
•Learner Licence Application
Deleted/
Combined
•Transfers and Subsidies:
Unspecified
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
MSCOA : Position Paper Status Report
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
Discussion Paper and Status
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 nonexchange 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
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
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
16