1. CIGFARO Conference 2017: mSCOA and Expenditure Management
Presented by National Treasury Local Government Budget Analysis: 10 October 2017

2. mSCOA Regulations:
The Regulation on a Standard Chart of Accounts for Municipalities (mSCOA) was promulgated on 22 April 2014 – the implementation deadline for all municipalities and municipal entities was 1 July 2017
When do we see the benefits of the reform? What should be expected in terms of benefits?
More than 70% of ICT implementations fail because they:
Run over budget;
Run over time; and
Do not achieve the anticipated benefits
Limited change management; unclear business case; ending the implementation at go-live or partial go-live.

3. mSCOA and Expenditure management:
Employee related cost:
Up to 30% and more of total annual expenditure
Approved organisational structure/ organogram
HR budget linked to approved positions
Plan for filled and vacant positions
Link positions to strategic and service delivery objectives

4. mSCOA and Expenditure management:
Unfunded mandates:
Fund segment – how will expenditure be funded
Function segment – core and non-core functions
Costing segment – cost reflective tariffs
Reliable and comparable information allows for accurate calculation and distribution of grants and subsidies
Link positions to strategic and service delivery objectives

5. mSCOA and Expenditure management:
Improved internal control as business processed are system driven
Audit trail for transactions, including financial and non-financial information
Higher level of skills required – development of resources
Automated processes will result in reduced administration and reporting
Reliable, comparable and transparent information, including dashboards and “drill down” functionality
Improved planning, service delivery and reporting, supported by technology

6. How do we get there?

7. Questions