Standard Chart of Accounts (SCOA)
Project Summary Report
February 2013
TABLE OF CONTENTS
PURPOSE ............................................................................................................................................... 2
BACKGROUND ...................................................................................................................................... 2
THE SCOA SEGMENTS AND THE ECONOMIC CLASSIFICATION ................................................... 3
STANDARD CHART OF ACCOUNTS VERSION 4 .............................................................................. 5
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................................................................................................................... 17
DEFINITIONS ....................................................................................................................................... 18
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Page 1 of 18

PURPOSE
1. The purpose of this report is to present an overview of the Standard Chart of Accounts (SCOA) review project, highlighting the changes to be implemented on 1 April 2013 along with a detailed discussion on the introduction of a new segment and the impact thereof in the systems environment.
BACKGROUND
2. As part of the continued reform of the SCOA, the SCOA Technical Committee periodically reviews the utilisation of the accounts and the quality of data produced with the view of improving the accounts and structures.
3. Through these reviews, the SCOA Technical Committee noted some areas for improvement, one in particular being the capturing of project expenditure to accurately reflect the economic classification of the project as a whole. Research and workgroup discussions were conducted during 2012 to identify viable solutions. This report sets out the decisions reached and adjustments to be implemented as from 1 April 2013.
4. The amendments made to the SCOA range from the introduction of a new segment to the amendment of SCOA accounts and definitions within existing segments. This report sets out the changes per segment along with the rationale for the change.
5. In general, the amendments to the SCOA will benefit departments as follows: a) The new version of the chart provides for the use of category links in BAS, which will ensure that misallocation between different segments are minimised 1 ; b) The introduction of the new infrastructure segment will improve the reporting on infrastructure spending and facilitate improvements to the economic classification through the use of defined category links in the system; c) The revised item structure will provide improved transparency in the presentation of spending items within government, for example with regard to inventory purchases; d) The recording of own account and outsourced construction is improved by creating additional items for proper reporting.
6. As a consequence of the above changes, specifically the introduction of the new segment, the
National Treasury will be re-implementing BAS across all departments. All accounts will be recaptured and assigned new BAS codes. This is important to note, as all the existing items will be deactivated as from 1 April 2013. Departments should not capture budget against posting level items used in the 2012/13 financial year.
7. A detailed mapping of all items between the pre 1 April 2013 and post 1 April 2013 SCOA can be obtained from the SCOA website. A copy has been distributed at the various SCOA workshops held with departments.
1
Departments not using BAS should contact the SCOA Technical Committee to discuss how best to improve classification within their own system environment. It is also important to note that amendments are currently underway within the IFMS modules to accommodate this change.

THE SCOA SEGMENTS AND THE ECONOMIC CLASSIFICATION
8. The pre 1 April 2013 SCOA comprised of 7 distinct segments, namely Project, Objective, Fund, Item,
Asset, Responsibility and Regional Identifier. The economic classification of transactions (i.e. the statistical representation of expenditure according to inputs) was achieved through the combination of the Item, Asset and Project segment. Through discussions with practitioners it was noted that the application of the economic classification across these three segments was problematic (both for transacting and reporting purposes). This resulted in a number of inconsistent classifications, i.e. incorrect combination of goods and services items with asset in the Asset segment and Project segments alike.
9. The SCOA Technical Committee tested a number of alternatives and in the end agreed that the best way to limit capturing errors was to build rules into the system to limit the item choices for specific categories of transactions. These are known as category links. To effectively build these category links, a new segment had to be created. This segment was created by splitting the old Project segment in two new segments, namely the Project segment and Infrastructure segment.
10. In addition to the creation of category links, the new Infrastructure segment allows for more flexibility in the use and management of projects in the Project segment. Projects need not be duplicated under various sub-categories as was the case in the previous version of the chart.
11. The table below summarises the main purpose of each of the segments. It should be noted that the purpose of the other segments have not been revised.
Infrastructure segment
Project segment
Objective segment
Fund segment
Item segment
Asset segment
Responsibility segment
Regional segment
The purpose of infrastructure segment is to identify whether or not a spending item relates to infrastructure and to show the type of infrastructure it relates to.
The purpose of this segment is to identify whether or not a payment is part of a project.
The purpose of this segment is to identify the programme/activity against which any given transaction should be recorded.
The segment reflects a department’s programme and sub-programme structure in as much detail as is required both for reporting and management purposes.
The purpose of this segment is to identify the source of funding from which payments are effected, and the nature of receipts.
The purpose of this segment is to record receipt and payment transactions as well as transactions in assets and liabilities.
The purpose of this segment is to identify asset classes to which a transaction is allocated when the purpose relates to an asset or the use of an asset.
The purpose of this segment is to identify the cost centre of any given transaction. As the location of cost centres varies across departments, depending on their organisational structure, this segment is not standardised and the departments maintains the segment.
The purpose of this segment is to identify which region benefits from government spending.

12. The economic classification is now derived from the combination of accounts in the Infrastructure and
Item segments, with the asset segment providing additional information on the type of asset constructed or utilised in the transaction or project.
13. The sections that follow describe the detailed changes within individual segments.

STANDARD CHART OF ACCOUNTS VERSION 4
FUND SEGMENT
14. No changes have been made to the high level structure of this segment.
OBJECTIVE SEGMENT
15. No changes have been made to the high level structure of this segment.
RESPONSIBILITY SEGMENT
16. No changes have been made to the high level structure of this segment.
REGIONAL IDENTIFIER
17. No changes have been made to the high level structure of this segment.
ITEM SEGMENT
18. A number of amendments have been made to the item segment. The changes range from the shifting of items between non-posting levels, the removal of unused items, the renaming or redefining of items to the creation of additional items.
19. Attached to this report as Annexure A , is an explanatory note providing details relating to the accounting treatment of inventory items and the impact of changes on the chart, which in the new chart have been split between inventory and consumables to simplify the future reporting requirements for inventory on hand at year-end.
20. Annexure B provides a mapping between the old version of the chart (pre 1 April 2013) and the new version that will be implemented on 1 April 2013.
21. Annexure C provides details of the new Infrastructure segment, with mapping tables to the old
Project segment.
Below follows a discussion of the important changes effected to the Item segment:
Own and outsourced items
22. The previous PRJ items have been renamed to OWN items , to eliminate the confusion between the
PRJ items in the Item segment and the Project segment. The prefix OWN and OUTS will now be used to distinguish between Own Account and Outsourced items respectively. In short, OWN items are used when a department undertakes an activity using its own inputs (e.g. personnel, materials etc.) whereas OUTS items are used when a department outsources the activity. See definitions below for further elaboration thereon.

An activity is outsourced when the department appoints a third party to carry out specific projects on its behalf. In understanding this concept a distinction should be made between ad hoc “contracting out” and “outsourcing”. “Contracting out” involves short-term assignment or specific projects whereas
“outsourcing” involves appointing one or more entities to take responsibility for a function or process mainly related to infrastructure projects for which the department remains accountable. Furthermore outsourced projects usually take a longer period of time to complete and often span over financial years.
The following, individually or in combination, could indicate the department has outsourced the project:
The department is not involved in the purchase of materials used as inputs to the project.
The project is fully carried out by the service provider and the department is only responsible for management of that project.
The third party only delivers the final product at the end of the project.
Single payment or a series of payments of the entire project are made to the service provider.
In some instances a department appoints multiple contractors with specific skills and responsibilities required to complete the project. This will not imply that the project as a whole is not outsourced.
An activity is carried out on Own account when the Department purchases all the necessary inputs and uses its own resources (e.g. staff and equipment) to plan, implement, and execute the activity.
Unlike outsourced projects, the department takes full responsibility for the inputs, processes and ultimate delivery of the project outputs. Inputs into the project may include the appointment of professional services such as engineers, architects, project managers, materials, etc. Inputs also include small outsourced projects. For example, the construction of a laboratory outsourced to a private firm forming part of a school building project which is implemented by the department on own account.
23. The main change introduced in the new version relating to outsourced items, is the introduction of additional OUTS items that relate to the main OUTS categories. These include items like “OUTS
Consultants & Professional Services – Civil Engineers”, which provides for outsourced cost related to an outsourced contract. As indicated in the definition above, outsourced projects can consist of more than one contract, for example, the construction of a building is outsourced as one contract, but in addition the project management and civil engineering activities related to the project is also outsourced. In this instance the project will then consist of three individual outsourced contracts that together form one outsourced project. In the new version of the chart, provision has now been made to capture all these contracts as OUTS items and to link these all to one project code in the project segment and one category in the Infrastructure segment.

Figure 1: Illustration of multiple outsourced contracts linked to one outsourced project
Infrastructure segment
Expenditure
Infrastructure assets
New infrastructure assets
New infrastructure assets capital
Construction outsourced capital
Item segment
Purchase/Construction of capital assets
Buildings and other fixed structures
Buildings and other fixed structures
New buildings and other fixed structures
Outsourced construction
Engineers - civil
Engineers - electrical
Architects
* Note: the project segment can also be used to link the individual contracts to the project as a whole
Providing for this functionality requires the duplication of items within the OUTS category. So for example the “OUTS - Consultants & Professional Services – Civil Engineers”, account had to be provided for the maintenance and repair, refurbishment, upgrades and new projects related to infrastructure. When selecting these items care should be taken to select the appropriate category relating to the project. The risk of misclassification is minimised, as these items are linked to specific items in the Infrastructure segment, so as long as the appropriate posting level is selected in the
Infrastructure segment, the newly introduced category links will ensure that the correct posting level items in the Item segment are selected. Refer to Annexure B for an illustration of the changes made.
24. It is important to note that only selected departments will be allowed to use OWN items. Such departments must make arrangements with the SCOA Technical Committee in order to be granted access to the project items.
Update of Persal mapping tables
25. All PERSAL employee allowances and deductions are individually mapped to SCOA codes. A detailed review of the PERSAL mapping was carried out resulting in some amendment to the tables.
26. The SCOA Technical Committee has reviewed the mapping of Learnership/Internship on PERSAL and based on the guide that was provided by the Department of Labour and Department if Public
Service and Administration the item was mapped to Compensation of Employees. The item Salaries
Wages:Compensation/Circumstancial Other (Residents) was amended to include the change discussed above S&W:Compens/Circum/Stipends/Learnership/Internship(Res
Relocating, redefining, creating of items under goods and services
Internal and external audit costs
27. The payment for the execution of the department’s internal audit function by an outside service provider will now be allocated to C/P:BUSINESS & ADVISORY SERVICES: ACCOUNTANT &
AUDITOR. The items under AUDIT COSTS:EXTERNAL should be used only for regularity audits and other specialised audits carried out by the Auditor-General or by another service provider. Refer to
Annexure B for an illustration of the changes made.

Computer Services
28. The computer services category caters for expenditure relating to the development and utilisation of information technology, information systems and related services provided by SITA or external service providers.
29. The sub-category for EXTERNAL COMPUTER SERVICES: SYSTEM DEVELOPMENT (NT) which was specifically created for the system development carried out by National Treasury has been removed. All such costs must be allocated to the general items available to all departments.
Refer to Annexure B for an illustration of the changes made.
Consultants
30. A consultant is a professional person appointed by the department to provide technical and specialist advice or to assist with the design and implementation of specific projects/programs. The legal status of this person can be an individual, a partnership or a corporation. It is unnecessary to maintain these skills in-house, since they are required on a once-off or temporary basis.
31. Additional category for SCIENTIFIC AND TECHNOLOGICAL ACTIVITIES (STA) was created on request from Department of Science and Technology. This category caters for research and development (R&D) expenditure in all fields of science and technology.
Refer to Annexure B for an illustration of the changes made.
Fleet Services
32. These accounts represent motor vehicle running expenses and are used by departments owning and managing their own fleet of vehicles or for the payments made to other entities for the management and use of fleet vehicles. Certain items were added to this category that was previously located elsewhere. These include:

FLEET SERVICE:LICENCE PLATE - the item was previously classified under Inventory. It is moved to Fleet Services category as it did not meet the definition for inventory.

FLEET SERVICE:CAR VALET & WASHING SERVICES - the item was previously classified under the Operating Payments category.
Inventory
33. All goods and services items were analysed to identify items that should be re-classified as inventory and or consumables in line with the revised definitions issued by the Office of the Accountant-
General. The SCOA Technical Committee then separated these items into the two categories.
34. It is important to note that some of the inventory categories will be blocked and would therefore only be available for use by specific departments or sectors. For example, Military Stores can only be used by the Department of Defence

35. The following new parent levels have been introduced to re-group similar items:
Inventory: Ammunition & Security Supplies
Inventory: Clothing Material & Accessories
Inventory: Farming &Garden Supplies
Inventory: Assets for Distribution
Inventory: Laboratory Chemical & Supplies
Consumable Supplies
Table 1: Old vs. new Inventory categories on reporting level 4
36. A detailed discussion document and definitions for the various categories are added as Annexure A to this report.
Operating payments
37. This category previously catered for all other goods and services expenditure not classified elsewhere in the broader items of goods and services. In the new chart, this category caters for services that are related to the operations of the department. All goods were therefore removed from the category.
Refer to Annexure B for an illustration of the changes made.
Interest and rent on land.
38. With effect from 1 April 2012 departments were not required to record the interest portion of a finance lease separately from the capital portion. This means that amortization of finance lease costs is not required and therefore the item INT PAID:FINANCE LEASES has been removed from the chart 2 .
2
The account was not deleted in 2012 because departments had already used this account at the time of the policy change.

Amendments to items within the Transfers and Subsidies category
40. The creation of an item for payment towards bursaries related to research and development
BURSARIES (R&D) was created on request from the Department of Science and Technology. It was created to cater for postgraduate students (all masters and PhDs excluding coursework degrees) and organised lifelong training for scientists and engineers or the equivalent for those intending to exe rcise an STS’s activity.
Amendments to items within the Purchase or Construction of Capital Assets category
41. New items for the outsourcing of the construction of new buildings and other fixed structures have been created. In addition, additional items have been created for the outsourcing of upgrades, rehabilitation, refurbishment and additions performed on the existing buildings.
42. Please refer to the section “Own and outsourced items” above for a detailed explanation of the purpose of creating these items. For each of the main posting categories, i.e. new, R&R and U&A, a full set of posting level OUTS items have been provided for the main types of outsourced contracts relating to capital projects. Refer to Annexure B for an illustration of the changes made.
43. All other adjustments in this category relate to items used mainly by the Department of Defence
(DOD) these include the following:

The item SMA Parachutes and Aircraft Launch/Landing/Ground Handling Equipment has been moved from SMA to Machinery and Equipment.

The item Normal Aircraft has been changed to Military Aircraft

An item for SPECIALISED MILITARY TRAILERS has been created, which includes trailers specifically designed for the military.

An item for MILITARY COMMUNICATION EQUIPMENT has been created, which caters for specialised communication equipment for military use.
44. All adjustments to the Capital Assets posting level items have also been effected on the
Assets<R5000 category in the Item segment as well as the asset categories in the Asset segment.
Payments for Financial Assets
39. The categories for PAY FIN ASS:WATER TRAD ACC, TRADING ENTITY:DEPRECIATION and
TRAD ENT:LOSS ON SALE OF CAP ASS were removed as these were originally created for recording accruals transactions for trading entities, however, these items have not been used in the recent past. Similar items under Revenue were also removed.

THE NEW INFRASTRUCTURE SEGMENT
INTRODUCTION
45. Spending on infrastructure is still a priority of government, aiming at improving access to and the quality of service delivery, and as a means to address unemployment and poverty.
46. Inadequate reporting on infrastructure spending is also an on-going problem despite the previous attempts to address this issue by implementing the Project segment.
47. In order to improve the flow of financial data inputs, amended systems reporting procedures in the form of changes to the chart needed to be implemented. This will result in BAS being able to provide systematic reporting of infrastructure expenditure at the project level.
48. At the highest level, the Infrastructure segment will distinguish between expenditure and nonexpenditure transactions. Infrastructure is then further sub-classified into Infrastructure and Non-
Infrastructure classification. This will provide for a direct link to the reporting requirements as discussed in the Reference Guide to the new Economic Reporting Format (Blue Book) where such distinction is required.
DISCUSSION
49. The Infrastructure segment is centrally controlled and standardised for all departments and aligned to the economic classification. It is aligned with the Infrastructure Reporting Model (IRM). However, detail of projects previously recorded as posting levels must now be captured in the Project segment. in essence the new Infrastructure and Project segments provides for a separation of the old Project segment into two new segment, with the detail of projects being captured in Project and Infrastructure being non-breakdown allowed to ensure that the category links provided for in the system functions correctly.
50. In the new version of the SCOA, the Infrastructure segment should be used as the main segment for deciding the economic classification and departments should structure their transactions such as to ensure that capturing starts with the Infrastructure segment. This will ensure optimal use of the category links and will limit the possibility of misclassification.
51. The purpose of the infrastructure category type is to provide the link between the posting level items in the Infrastructure segment and those in the Item segment of the chart. The infrastructure category type in the financial system ensures that the correct items in the Item segment is linked to the correct posting level projects in the Infrastructure segment, so ensuring correct classification and the elimination of inconsistencies. This link is pre-set in the systems environment, and when an infrastructure category type is identified a set of posting level items are provided in the Item segment that is linked to such category. Refer to Annexure D

52. Within the infrastructure category, provision is made for a distinction between existing infrastructure, new infrastructure, infrastructure transfers and payments for financial assets (concessional loans).
53. Furthermore, a section has been created for the capturing of leases of infrastructure and noninfrastructure assets.
Existing infrastructure assets:
54. Departments may incur expenditure on infrastructure assets already in existence, which is either used by the department or another department. Spending on existing infrastructure assets can be either of a current (repairs and maintenance) or a capital nature (upgrade and additions or for refurbishment and rehabilitation of the asset) as defined in the IRM. The spending can be outsourced or on executed on own account.
Table 2: The Infrastructure categories for spending on existing infrastructure assets
1 2 3 4 5
P/NP
LEVEL
EXPENDITURE
INFRASTRUCTURE ASSETS
EXISTING INFRASTRUC ASSETS
MAINTENANCE & REPAIR CURRENT
EX INFR:MAINT&REP: OUTSOURCED
EX INFR:MAINT&REP: OWN ACCOUNT
UPGRADE & ADDITIONS CAPITAL
EX INFR:UPGRADE&ADD: OUTSOURCED
EX INFR:UPGRADE&ADD: OWN ACCOUNT
REFURB & REHAB CAPITAL
EX INFR:REFURB&REHAB: OUTSOURCED
EX INFR:REFURB&REHAB:OWN ACCOUNT
Y
Y
N
Y
N
N
N
N
Y
N
Y
Y
New infrastructure assets:
55. A department may purchase a completely new infrastructure asset or have a project to construct a new infrastructure. In both cases the expenditure incurred is capital in nature and should be classified under new infrastructure assets. A distinction is made at a lower level between purchased, constructed through outsourcing of the project and constructed using own account transactions.
Table 3: The new Infrastructure category in the Infrastructure segment

1 2 3 4 5
EXPENDITURE
INFRASTRUCTURE ASSETS
NEW INFRASTRUC ASSETS
NEW INFRASTRUC ASSETS CAPITAL
PURCHASE OF NEW INFRASTRUCTURE
CONSTRUCTION - OUTSOURCED
CONSTRUCTION - OWN ACCOUNT
Infrastructure transfers:
P/NP
LEVEL
N
N
N
N
Y
Y
Y
56. Infrastructure Transfer (Capital): This category is relevant when the department makes a transfer of funds that the beneficiary must use either
 for the construction of new infrastructure or
 for upgrades / additions to capital or refurbishment / rehabilitation of existing infrastructure.
57. Infrastructure Transfers (Current): This category is relevant when the department makes a transfer of funds to an entity to cover administrative payments relating to the construction of infrastructure, such as conducting a feasibility study conducted before. Once the decision has been made to construct the infrastructure the administrative costs directly relating to the infrastructure project will be capitalised to the project. See Table 4 below.
Infrastructure payments for financial assets:
58. This category caters for concessional loans to other sectors of governments for construction of infrastructure assets. An example will be monies loaned for the construction of the Gautrain. See
Table 4 below.
Infrastructure leases:
59. This category caters for both Finance Leases and Operating Leases. The category is used to classify the monthly repayment as per the lease agreement. See Table 4 below.
Table 4: Infrastructure transfers, payments for financial assets and leases

1 2 3 4 5
EXPENDITURE
INFRASTRUCTURE ASSETS
INFRASTRUCTURE TRANSFERS
INFRASTRUCTURE TRANSFERS CAPITAL
INFRASTRUCTURE TRANSFERS CURRENT
INFRASTRUCTURE: PAY FIN ASS
CONCESSIONAL LOANS-INFASTRUCTURE
INFRASTRUCTURE: LEASES
INFRASTRUCTU:FINANCE LEASES(CAP)
INFRASTRUCT:OPERATING LEAS (CUR)
P/NP
LEVEL
N
N
N
Y
Y
N
Y
N
Y
Y
Non infrastructure spending
60. This category is specifically for spending not directly related to the construction or purchase of infrastructure assets. Such spending can be either of a current or capital nature.
61. Non infrastructure current: This category includes payments relating to standalone purchases of goods and services as well as purchases of goods and services relating to the maintenance and repair of a non-infrastructure asset.

Table 5: Non Infrastructure Current category in the Infrastructure segment
Non infrastructure capital:
62. This category caters for the purchase of standalone capital assets and for projects for the creation of new, and or the upgrading, rehabilitation or refurbishment of existing non infrastructure assets.
Non infrastructure leases:
63. This category caters for both finance and operating leases and is used to classify the monthly payments as per the lease agreement.
64. It is important to note that any maintenance works performed on a leased asset should be allocated against the repairs and maintenance item within Infrastructure segment, for example outsourced maintenance of a leased photocopier will be allocated against the item: NON INFRA
MAINT&REPAIR:OUTS
65.
Table 6: Non Infrastructure Capital and Leases category in the Infrastructure Segment
EXPENDITURE
NON INFRASTRUCTURE: CAPITAL
NON INFRASTRUCTURE: CAPITAL
NON INFRA:UPGRADE & ADDITIONS
NON INFRA:REFURB & REHAB
NON INFRA:LEASES
N
Y
N
N
N
N

66. Non Infrastructure: Payments for Financial Assets is broken down into stand-alone current as well as stand-alone capital.
67. Non Infrastructure: Internal Charge this is for goods and services produced by the department for resale. For example furniture manufactured by inmates for resale.
68. Non Infrastructure: CARA Expenditure: The Minister of Justice and Constitutional Development approves funds from the Criminal Asset Recovery Account (CARA). This account consists of all money derived from the execution, confiscation and forfeiture orders contemplated in terms of the
Prevention of Organised Crime Act, Act No 121 of 199. Payments from this account should then be used against this item in the infrastructure segment.
ASSET SEGMENT
69. With the introduction of the finance lease items in the Item segment, under all categories of Payments for Capital Assets, it serves no purpose to have the Leased Asset category in the Asset segment.
Therefore the category is removed from the asset segment.
Table 7: The category removed in the Asset segment
1 2
LEASED ASSETS
BUILDINGS&OTHER FIXED STRUCTURES
INTANGIBLE ASSETS
LAND AND SUBSOIL ASSETS
OTHER MACHINERY AND EQUIPMENT
TRANSPORT EQUIPMENT
P/NP
LEVEL
N
N
N
N
N
N
70. Laboratories and Mortuaries items have been moved from the Non-Residential Buildings category to the Health Assets category.
71. Prefabricated and Portable Buildings item have been added under Universities, Colleges and
Schools, and Health Assets categories for ease reporting. Clinic & Community Health Centre and
Hospital & Ambulance Station have been removed as it was duplicated under the items grouped for
Health assets.

PROJECT SEGMENT
72. The Project segment has been changed to only identify projects within the Department, allowing for the allocation of all payment items to projects. This would make it possible to monitor the cost of both current and capital projects and departments will be in a position to list any type of project. For purposes of detailed reporting on infrastructure, individual projects will be linked to the appropriate reporting categories in the Infrastructure segment.
73. As mentioned previously, it is a requirement from the DST to report on Research and Development
(R&D) expenditure, the SCOA Technical Committee took a decision to address the reporting requirement by adding items in both Item and Project segments.
74. The standard R&D projects will be used to facilitate linking between the project segment and activities that relates to R&D in the item segment, for example, Compensation of Employees, Transfers, etc.
75. R&D projects will be created under PRJ RESEARCH AND DEVELOPMENT(S&T) whereas standalone purchases of goods and services related to R&D will be linked to the project for NP
RESEARCH AND DEVELOPMENT(S&T)
Table 8: The standard projects created in the project segment

DEFINITIONS
Project
A project is a collection of tasks to achieve a certain goal, for example the construction of a new road. Normally, projects are related to a capital asset, for example building a new road or upgrading the existing one or extending a building.
Note: When department performs normal maintenance, for example, replacing a light bulb, painting an office room or repairing carpets (by the employees within their establishment), the acquisition of material and supplies to be used on an ad-hoc basis should be classified as Consumables. No financial transaction takes place when the employees eventually perform repairs and maintenance. If an external firm carries out repairs and maintenance, contractors maintenance and repairs item under Property Payments category should be used when payment is made.
Stand-alone items
Expenditure on stand-alone items occurs when government buys individual goods or services, provided that such purchases are not part of a project. For example, the government buying computers or vehicles, not part of a project, constitutes expenditure on stand-alone items. The government paying an institution to train government employees is another example of expenditure on a standalone item.