1. mSCOA COMPLIANCE – ARE YOU READY?
Presented by: Ronnie Page
10 March 2017

2. mSCOA COMPLIANCE – ARE YOU READY?
CONTENTS
Minimum compliance
Municipalities and municipal entities
LG upload portal: Authorisation and registration
LG upload portal: Uploads
System change/upgrade process and compliance
FAQ

3. mSCOA COMPLIANCE – ARE YOU READY?
CONTENTS
Minimum compliance
Municipalities and municipal entities
LG upload portal: Authorisation and registration
LG upload portal: Uploads
System change/upgrade process and compliance
FAQ

4. mSCOA MINIMUM COMPLIANCE

5. mSCOA COMPLIANCE – ARE YOU READY?
CONTENTS
Minimum compliance
Municipalities and municipal entities
LG upload portal: Authorisation and registration
LG upload portal: Uploads
System change/upgrade process and compliance
FAQ

6. mSCOA COMPLIANCE – ARE YOU READY?
MUNICIPALITIES AND MUNICIPAL ENTITIES
As per the Municipal Regulations on the Standard Chart of Accounts Gazette No (mSCOA) issued on 22 April 2014, the Regulations apply to all municipalities and municipal entities.
It must thus be noted that consolidated reporting needs to be submitted to National Treasury, as has always been required, implying that all municipal entities need to be compliant with the mSCOA regulation come 1 July 2017.
Failure to ensure this compliance in BOTH municipalities and municipal entity’s will result in non-compliance irrespective of whether the municipality hosting the entity is compliant.

7. mSCOA COMPLIANCE – ARE YOU READY?
CONTENTS
Minimum compliance
Municipalities and municipal entities
LG upload portal: Authorisation and registration
LG upload portal: Uploads
System change/upgrade process and compliance
FAQ

8. mSCOA COMPLIANCE – ARE YOU READY?
LG upload portal:
Authorisation and registration
The Municipal Manager (or his/ her formally delegated official (delegated in writing)) must register on the National Treasury Local Government (LG) Database.
To register, the municipal manager must obtain and register the relevant registration and/ or delegation documentation (also for a delegate) with the National Treasury.

9. mSCOA COMPLIANCE – ARE YOU READY?
LG upload portal:
Authorisation and registration
The contact details for this purpose are:
The National Treasury: LG Database
Ms. Cornell Botha

10. mSCOA COMPLIANCE – ARE YOU READY?
LG upload portal:
Authorisation and registration
Only once the municipality is registered on the LG Database for mSCOA submissions, can the municipal manager or his delegate upload the municipality’s integrated development plan (IDP) and/or Budget sample strings onto the portal on the LG Database directly via the municipality’s system.

11. mSCOA COMPLIANCE – ARE YOU READY?
LG upload portal:
Authorisation and registration
TO NOTE:
The municipalities details per the National Treasury’s database, must be updated and accurate.
These details are validated against the authorisation details given for the Upload Portal.
Details that do not correspond will result in unsuccessful registration and the inability to submit data strings to NT.

12. mSCOA COMPLIANCE – ARE YOU READY?
LG upload portal:
Authorisation and registration
TO NOTE:
Identity Numbers are the main validation point on the LG Upload Portal.
Non-submission of identity numbers will result in unsuccessful registration and inability to upload data.

13. mSCOA COMPLIANCE – ARE YOU READY?
CONTENTS
Minimum compliance
Municipalities and municipal entities
LG upload portal: Authorisation and registration
LG upload portal: Uploads
System change/upgrade process and compliance
FAQ

14. mSCOA COMPLIANCE – ARE YOU READY?
LG upload portal: Uploads
Delegated users to enter their address as a user name and create a password – this completes the registration process.

15. mSCOA COMPLIANCE – ARE YOU READY?
LG upload portal: Uploads

16. mSCOA COMPLIANCE – ARE YOU READY?
LG upload portal: Uploads
Do not drag and drop

17. mSCOA COMPLIANCE – ARE YOU READY?
LG upload portal: Uploads

18. mSCOA COMPLIANCE – ARE YOU READY?
LG upload portal: Uploads
Should read: “in progress”

19. mSCOA COMPLIANCE – ARE YOU READY?
CONTENTS
Minimum compliance
Municipalities and municipal entities
LG upload portal: Authorisation and registration
LG upload portal: Uploads
System change/upgrade process and compliance
FAQ

20. mSCOA COMPLIANCE – ARE YOU READY?
System change/upgrade process and compliance
Guidelines presented in of mSCOA Circular No. 5 & 6:
Every municipality and its respective municipal entities (pilot, non-pilot and irrespective of whether remaining with or upgrading its existing package of systems) must evaluate (conduct an ICT due diligence of) all the existing ICT system(s);
Once this ICT Due Diligence has been completed, the municipality’s mSCOA Project Steering Committee must:
Assess whether the municipality’s existing system(s) as a package, meets the majority of the functional requirements for its category/ (amalgamated municipality’s category);

21. mSCOA COMPLIANCE – ARE YOU READY?
System change/upgrade process and compliance
Guidelines presented in of mSCOA Circular No. 5 & 6 (cont):
Once this ICT Due Diligence has been completed, the municipality’s mSCOA Project Steering Committee must:
Consider the cost of any additional functionality the municipality/ (amalgamated municipality) will have to procure from its existing package of service provider(s) to be able to conduct the minimum mSCOA transacting for its category by 1 July 2017 and the affordability thereof to the municipality/ (amalgamated municipality) considering its 2016/17 MTREF;

22. mSCOA COMPLIANCE – ARE YOU READY?
System change/upgrade process and compliance
Guidelines presented in of mSCOA Circular No. 5 & 6 (cont):
Once this ICT Due Diligence has been completed, the municipality’s mSCOA Project Steering Committee must:
Compare the total cost of its existing ‘package of system(s)’, including the cost for any additional functionality (refer to paragraph (ii) above) with the other available service offerings for its category/ (amalgamated municipality’s category), included in the RT25-panel of service providers;

23. mSCOA COMPLIANCE – ARE YOU READY?
System change/upgrade process and compliance
Guidelines presented in of mSCOA Circular No. 5 & 6 (cont):
Once this ICT Due Diligence has been completed, the municipality’s mSCOA Project Steering Committee must:
Determine whether its existing ‘package of service provider(s)’ will be able to provide and implement any and all of the outstanding functional areas by 1 July 2017, including upskilling affected municipal officials (in the case of amalgamation, across all the municipalities that are amalgamating);
Consider the penalties and reasons for contract termination in any of its contracts with existing service providers;

24. mSCOA COMPLIANCE – ARE YOU READY?
System change/upgrade process and compliance
Guidelines presented in of mSCOA Circular No. 5 & 6 (cont):
The project steering committee must document its decision and recommendation(s) on the way forward (relating to the items listed above) for the municipality and its municipal entities (on the municipality’s ‘package of existing system(s)’), clearly setting-out its findings;
Once the municipality’s mSCOA project steering committee has made its decision and recommendation(s), the municipality must solicit the comments of the National Treasury and Provincial Treasury;

25. mSCOA COMPLIANCE – ARE YOU READY?
System change/upgrade process and compliance
Guidelines presented in of mSCOA Circular No. 5 & 6 (cont):
Only after the municipality has received the comments of the National Treasury and/ or the Provincial Treasury, the mSCOA (joint) project steering committee should assist the Municipal Manager to consider such comments and prepare a recommendation to the Municipal Council in this regard, and
The municipal manager must submit a copy of the municipal council’s decision to the National Treasury and Provincial Treasury within five (5) working days after the meeting during which the Municipal Council has made the decision in this regard. 

26. mSCOA COMPLIANCE – ARE YOU READY?
System change/upgrade process and compliance
Municipalities that have not adhered to the process set out in
mSCOA No. 5 and 6
will be investigated and face consequences from National Treasury.

27. mSCOA COMPLIANCE – ARE YOU READY?
CONTENTS
Minimum compliance
Municipalities and municipal entities
LG upload portal: Authorisation and registration
LG upload portal: Uploads
System change/upgrade process and compliance
FAQ

28. mSCOA COMPLIANCE – ARE YOU READY?
FREQUENTLY ASKED QUESTIONS (FAQ)
Register as a user on the FAQ Database. It is important to note that any requests logged otherwise than through the FAQ Database will NOT be considered.
When requesting a change to the mSCOA chart, ensure that you select one of the following options from the FAQ Database options, also illustrated in the screenshots below:
Request for a change to the mSCOA chart; and/ or
Request for an addition to the mSCOA chart.

29. mSCOA COMPLIANCE – ARE YOU READY?
FREQUENTLY ASKED QUESTIONS (FAQ)
To enable the National Treasury to recommend any change and/ or addition to the Technical mSCOA Committee, it is crucial that any request is accompanied by adequate supporting information and/ or explanation.
All requests logged on the FAQ Database, will be submitted to the Technical mSCOA Committee for consideration. If the Technical mSCOA Committee approves a change and/ or addition, the National Treasury will update the mSCOA chart accordingly. Any such approved changes and/ or additions will only apply from the next new release of the mSCOA chart and reporting framework (1 July of the next MTREF budget cycle). Any decision of the Technical mSCOA Committee will be final.

30. mSCOA COMPLIANCE – ARE YOU READY?
CONTENTS
Minimum compliance
Municipalities and municipal entities
LG upload portal: Authorisation and registration
LG upload portal: Uploads
System change/upgrade process and compliance
Thank You

31. Questions