mSCOA TABLED BUDGET DATA SUBMISSION SEGMENT ERRORS Presented by: National Treasury

Background TABB file is first real submission of data in mSCOA format Second phase of testing is a high level of the use of segmentation as per classification Many errors have been identified and at this stage of the project remains a huge concern for NT

Test 1 – TABB must balance with TM01-TM12 The layout of the file contains: TABB, TM01-TM12, ITY1, ITY2 This requirements has been communicated in various forums TM01-TM12 must equal TABB 81 errors Ranges from R2 to R177M

Test 1 – TABB must balance with TM01-TM12 TABB R13 TM01 R1 TM02 R1 TM03 R1 TM04 R1 TM05 R1 TM06 R1 TM07 R1 TM08 R1 TM09 R1 TM10 R1 TM11 R1 TM12 R2 Vendors with errors:

Test 2 – Both Capital and Operating Projects must be used mSCOA is all about Projects linked to IDP 10 municipalities have errors 6 vendors represented

Test 3 – Capital Projects have Item Assets: Acquisitions or Additions Exceptions have been added to original test 60 municipalities have errors 10 vendors represented

Test 4 – Operating Projects cannot have Item Revenue & Assets: Acquisitions or Additions Exceptions have been added for revenue foregone 83 municipalities have errors 10 vendors represented

Test 5 – Project: Free basic services; Cost of Free Basic Services; Rates Rebate – Only Item: Revenue Exceptions might have to be added as data is being interrogated 28 municipalities have errors 8 vendors represented

Test 6 – Project: Default no Item Expenditure or Asset: Acquisitions Exceptions might have to be added as data is being interrogated 64 municipalities have errors 10 vendors represented

Test 7 – Remuneration of Councillors only with Function: Mayor and Council No exceptions allowed 21 municipalities have errors 7 vendors represented

Test 8 – Bulk Purchase Electricity only on Function Electricity No exceptions allowed 46 municipalities have errors 8 vendors represented

Test 9 – Bulk Purchase Water only on Function Water Distribution No exceptions allowed 37 municipalities have errors 9 vendors represented

Test 10 – Default Region not valid Exceptions might be added after consultation with LGBA, but this might open the door for misuse 34 municipalities have errors 9 vendors represented

Test 11 – Sum of Charges and Recoveries (Costing) Sum of Costing must be zero 24 municipalities have errors 8 vendors represented

Test 12 – Default Costing Default Revenue and Expenditure Default Costing cannot have Default Revenue or Default Expenditure 68 municipalities have errors 10 vendors represented

Test 13 – Small Differences Account Expenditure Small Differences may not be used 9 municipalities have errors 5 vendors represented

Test 14 – Balance Sheet Budgeting Trial balance must be zero across all Item segments 174 municipalities have errors All vendors represented

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