mSCOA VENDOR REPORTING FORUM FREE BASIC SERVICES Presented by National Treasury 22 August 2017

Background Free basic services are managed in the Project segment; The Item account for the rebate is the same as the Item account for the levy; The free portion of the levy must be against Fund Equitable Share for indigents; The free portion for indigents must be levied against the cost price of the service; Only the rebate transaction will carry the Project FBS.

Indigent Transaction LEVY R1,000 OF WHICH R200 IS FOR FREE ELECTRICITY PROJECT FUNCTION ITEM FUND DEBIT CREDIT LEVY DEFAULT ELECTRICITY IR: SERVICE CHARGES: ELECTRICITY SERVICE CHARGES: ELECTRICITY 800 Equitable Share 200 IA: RECEIVABLES: ELECTRICITY SERVICE CHARGES: ELECTRICITY 800 Equitable Share 200 REBATE COST OF FBS: ELECTRICITY ELECTRICITY IR: SERVICE CHARGES: ELECTRICITY Equitable Share 200 IA: RECEIVABLES: ELECTRICITY 200

Property Rates Transaction LEVY R1,000 OF WHICH R200 IS FOR REBATE PROJECT FUNCTION ITEM FUND DEBIT CREDIT LEVY Default Finance IR: Property Rates: Residential Taxes: Property Rates 1,000 IA: Receivables: Property Rates 1,000 REBATE Property Rates Rebates: Pensioners Finance IR: Property Rates: Residential Taxes: Property Rates 200 IA: Receivables: Property Rates 200

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