SESSION 11 ITEM SEGMENT PRESENTED BY: NATIONAL TREASURY

2 CONTENTS Receipts Transfers and subsidies Payments for capital assets Transactions in assets in liabilities

3 RECEIPTS Removal of asset classes for: Sales of goods <R5000 Sales of capital assets Rental of capital assets Adding accounts for interest earned on Exchequer Account – NT Adding E-NATIS transaction fees Addition to the penalties category Relocation of labour union fees

4 TRANSFERS AND SUBSIDIES Unused items removed Relocation of names of provinces and municipalities to Regional Segment Removal of items for RSCL National and Provincial entities split in the chart as per PFMA

5 TRANSFERS AND SUBSIDIES Provincial public entity pre-descriptor removed Enhancement of the transfers to households category Inclusion of post-retirement benefits to the households category

6 AUDIENCE QUESTION What is a transfer and when will it be recorded in the financial system of a government department? Transfers and subsidies include all unrequited payments made by the government unit. A payment is unrequited provided that the government unit does not receive anything of similar value directly in return for the transfer to the other party. Examples of transfers will be social security benefits paid to households, fines, penalties, compulsory fees and compensation for injuries or damages paid to another unit.

7 AUDIENCE QUESTION How would a department allocate amounts payable to insurance companies for insurance premiums taken on assets in terms of Treasury Regulation ? In terms of international classification standards non- life insurance premiums are recorded as transfers and not as payments for goods and services because the party who will be making the payment will not be sure if they will receive any benefits for the payment and it may also not bear any relation to the premium that was paid. In the standard chart of accounts the payment will be recorded under transfers to private enterprises other transfers, non-life insurance premiums TR BAS segment code 1976

8 PAYMENTS FOR CAPITAL ASSETS Detailed immovable asset classes moved to Asset Segment Movable asset classes remain Alignment of classes with asset management guide Asset classes on stand alone vs. projects and own account construction

9 ASSETS, LIABILITIES AND NET ASSETS This category records all: Balance sheet transactions Assets, current and non-current Liabilities, current and non current Net assets Changes: Relocation of short term investments Relocation of claims recoverable codes Regrouping and relocation of disallowance codes

10 For any additional questions or issues for clarification, please contact the National Treasury SCOA Technical Committee at: Call centre: (012) Website: