1. Institute of Municipal Finance Officers & Related Professions
mSCOA Business Readiness Self-Assessment
IMFO
Institute of Municipal Finance Officers & Related Professions

2. Institute of Municipal Finance Officers & Related Professions
mSCOA Introduction
Introductions
Yushaa Abrahams
Paul van de Haar
National Treasury mSCOA Regulation overview
Impact and implications to Municipalities
How to use mSCOA self-assessment
Institute of Municipal Finance Officers & Related Professions

3. Institute of Municipal Finance Officers & Related Professions
Introduction to Self Assessment
To ensure compliance to the mSCOA regulation, each Municipality will experience impacts across the following key categories:
Corporate Governance
Strategic Planning and Reporting
Business Processes
Technology
Data
People and Change Management
Institute of Municipal Finance Officers & Related Professions

4. Institute of Municipal Finance Officers & Related Professions
Scoring System and How To…
To assist Municipalities in navigating the journey towards mSCOA compliance, a structured framework has been developed to establish a baseline measurement.
The assessment framework (primarily targeted for non-Metros)
Based on only 26 questions, across the 6 categories
Scoring system for each question based on a rating scale (1-4)
Multiple employees within same municipality score simultaneously
Alignment between departments
Identifying potential gaps based on perspective
Not the “silver bullet” to whether your Municipality complies
Institute of Municipal Finance Officers & Related Professions

5. Institute of Municipal Finance Officers & Related Professions
Governance
Your municipality mSCOA project has buy-in and support from Senior Management and Council.
Your municipality has identified an mSCOA Project Sponsor.
Your municipality mSCOA project is incorporated in your IDP.
Your municipality mSCOA project team includes representatives from across the different municipality departments/directorates/functions.
Your municipality mSCOA project team meets on a regular basis.
The municipality mSCOA risk register is regularly updated and tabled to your relevant oversight committees.
Your municipality mSCOA steering committee is directing, monitoring and reporting on risks and issues related to the mSCOA project.
Your municipality internal audit function is providing assurance services for the roll-out of the mSCOA project.
Institute of Municipal Finance Officers & Related Professions

6. Institute of Municipal Finance Officers & Related Professions
Strategic Planning and Reporting
Your municipality has aligned your Integrated Development Plan (IDP), Service Delivery and Budget Implementation Plan (SDBIP), and Medium Term Revenue and Expenditure Framework (MTREF).
Your municipality is in a position to prepare an mSCOA budget for the next financial year.
Your municipality automatically populates reports using information from your core financial system.
Institute of Municipal Finance Officers & Related Professions

7. Institute of Municipal Finance Officers & Related Professions
Business Processes
Your municipality has completed the functionality assessments as set out by National Treasury i.e. MFMA Circular 80, mSCOA Circular 5 and 6.
Your municipality has documented existing business processes.
Your municipality has aligned your business processes to mSCOA’s 15 business processes.
Institute of Municipal Finance Officers & Related Professions

8. Institute of Municipal Finance Officers & Related Professions
Technology
Your municipality has undertaken an IT readiness assessment to determine whether your IT infrastructure (including networks, servers, security) is capable of supporting your business requirements in pursuit of mSCOA compliance. An action plan has been developed to achieve readiness.
Your municipality has engaged with your core system vendor to determine the level of mSCOA compliance that their system is able to offer and to discover what is required to address the shortfalls.
Your municipality has integrated your various applications seamlessly with your core financial system.
Your municipality has undertaken an impact assessment to understand the IT landscape implications and changes as a result of becoming mSCOA compliant.
Institute of Municipal Finance Officers & Related Professions

9. Institute of Municipal Finance Officers & Related Professions
Data
Your municipality has defined a data governance framework and committee that is responsible for ensuring overall quality of data in the municipality.
Your municipality has defined clear roles and responsibilities for data owners and you have undertaken data cleansing exercises.
Your municipality has clearly identified the ownership of key data object and structures required for ensuring mSCOA compliance.
Your municipality has adequately prepared for data migration from legacy systems, ensuring master data integrity and data quality.
Your municipality has plans in place to manage historical data on legacy systems which has not been migrated to the new application system.
Institute of Municipal Finance Officers & Related Professions

10. Institute of Municipal Finance Officers & Related Professions
People and Change Management
Your municipality is able to achieve mSCOA compliance using your existing municipal staff, while considering aspects such as staff skills and staff capacity.
Your municipality has adequate communication platforms setup to facilitate mSCOA communication within your municipality i.e. mSCOA portal, newsflashes, notices etc.
Your municipality has mechanisms in place to meet mSCOA training needs as they arise.
Institute of Municipal Finance Officers & Related Professions

11. Institute of Municipal Finance Officers & Related Professions
Analysis and Insights
Institute of Municipal Finance Officers & Related Professions

12. Institute of Municipal Finance Officers & Related Professions
Conclusion
A useful tool to be able to easily and cost-effectively ascertain where along the journey your Municipality is towards mSCOA compliance.
Complete the assessment to determine a baseline
Compare results across departments to level set expectations
Potentially compare results with other Municipalities
Once established baseline - what next?
More detailed evaluation if deemed necessary
Institute of Municipal Finance Officers & Related Professions

13. Institute of Municipal Finance Officers & Related Professions
Questions
Institute of Municipal Finance Officers & Related Professions

14. Institute of Municipal Finance Officers & Related Professions
Thank You!
Institute of Municipal Finance Officers & Related Professions