1. mSCOA Integrated Consultative Forum Nelson Mandela Bay 25 / 26 February 2015
Presented by National Treasury: Chief Directorate Local Government Budget Analysis

2. mSCOA Integrated Consultative Forum
Agenda Item: Assessment of mSCOA
readiness
Presented by National Treasury: Chief Directorate Local Government Budget Analysis

3. Presentations & Regulation Promulgation
Road till here
Initial Consultative
Process
Presentations & Regulation Promulgation
We believe some of the pilot municipalities are almost there but now need to see and test. We will therefore embark on a site visitation cycle to obtain the factual positions and updating our risk registers and assist with risk mitigation plans.

4. First Question ? Failure is not an option! We crushed Y2K.
We achieved MTREF budget reforms.
In year reports done consistently by 278 Municipalities.
We will achieve mSCOA !

5. Conceptual test vs actual
Site visits
Project charters and risk registers
Need to see transactions
Budget tool
Demo data on Transactions.
All Sub systems.
Costing
Assets
Implementation plans.
Current Risks to be discussed and resolved.
Budget for project approved.
Fall over and disaster recovery plans
Opening Balances
Prior year Figures
Ensuring that the project is owned by the pilots.
Review of risk register.
Signed SLA’s
Project Charters Signed.
Live transaction posting and data extraction to be physically demonstrated .

6. Pre Implementation Plans
Our Major Tick Boxes
Does the system provider / Municipality have a fully thought through project plan?
Pre Implementation Plans
Does the project plan cater for disaster recovery fall over plans / The Y2K effect?
Does it include the current version to be replaced by un-tested versions of replacement systems? If so what is the Specific Audit risk mitigation plans?
What resources have been allocated to these plans and are all resources secured?
Institutions e.g.. National Treasury and Provincial Treasury,
Service Providers and ICT providers,
In House Municipal staff designated and dedicated.
Are outside parties contracted and secured?

7. Our Major Tick Boxes cont.
Is there current activity at the shop floor?
Demo data / “Parallel testing”
To test the budget capturing of all 7 segments of mSCOA?
Have the Municipalities started to retro-fit the current Vote structure to mSCOA / Managing the Audit Opening Balances?
To Test the synchronisation up stream as well as drilling down stream between Sub ledgers to the GL?
Is the development far enough progressed to test the portal access and ETL (Extract transfer and Load Protocols) requirements?
Will the Pilots be able to transact on 1 July in the New year?
Are short codes going to be used and is there a one to one relationship with the Chart and segments?
How ready is the pilots for normal in year and Budget reporting?
What is the current audit opinion and how does it impact on piloting?

8. Achieving The Objective
What will need to be done?
Achieving the results
Site visits to all pilots and Metro’s
Physical testing needs to be proven live.
Load and database acceptance will be tested.
Project plans will be reviewed and proposals to rectify will be made.
Signed Copies of MOU and SLA need to be provided.
How and who is dealing with the Audit file in terms of migration conversion to mSCOA, is this a upgrade?
Continued ongoing monitoring and support will need to be agreed between Provincial Treasuries, Municipalities and 3rd parties.

9. Achieving The Objective
What the project is
It’s a Pilot.
It’s testing of the up load of and configuration of the GL transactions.
It’s the proofing grounds of mSCOA for both the concept as well as the systems in use.
It’s the testing of the classifications / chart for completeness.
It’s an organizational Reform.

10. Achieving The Objective
What the project is not
A replacement of the current reporting requirements for budget, in-year and annual reporting.
A National Treasury managed project, ( We are only facilitating and not an integral part of the implementation project.)
Not a mere compliance to regulations.
Not an IT or Financial only reform. “Need to be adopted organization wide”.

11. Pilot Site Visits - Attendees required.
Municipal Manager
Budget & Treasury
Service Providers
Non Financial Managers NT PT

12. Pilots Visits to Establish Project Governance & Conduct Readiness Assessments
Municipalities / Metro's
Proposed dates
Engagement Parties
Senqu Local Municipality
04-Mrt
Eastern Cape PT,Sebata
Sol Plaatje Local Municipality
05-Mrt
Northern Cape PT,Business Connexion,Payday
Elias Motsoaledi Local Municipality
09-Mrt
Limpopo PT,CISC ,VIP
Victor Khanye Local Municipality
10-Mrt
Mpumalanga PT,Sebata
Nkangala District Municipality
Mpumalanga PT,CISC ,VIP
Ekurhuleni Metro
11-Mrt
Gauteng PT,Business Connexion
Merafong Local Municipality
12-Mrt
Gauteng PT,BIQ
Tlokwe Local Municipality
North West PT,Vesta
Setsoto Local Municipality
13-Mrt
Free state PT,CISC ,VIP
Knysna Local Municipality
16-Mrt
Western Cape PT,Rdata
uMgungundlovu District Municipality
17-Mrt
KwaZulu-Natal PT,Sage Evolution,VIP
Richmond Local Municipality
KwaZulu-Natal PT,Fujitsu
uMhlathuze Local Municipality
18-Mrt
KwaZulu-Natal PT,Fujitsu,VIP
Drakenstein Local Municipality
23-Mrt
Western Cape PT,Business Connexion,DRL
Overstrand Local Municipality
24-Mrt
Western Cape PT,Bytes Technologies,Payday

13. Logistics
The Pilot Municipality will need to arrange the following logistically:
Availability of key personnel for the engagement.
Invitations to the PT and Service Providers.
Ensure that the Service Providers is available.
The venue and time allocations.
Kindly note that the dates as given needs to be adhered to.

14. Proposed Agenda Section 71 / Budgets / Statutory reports
Current formats remain
NT to build and test against old formats.
Project Charter
Roles and resources
Detail implementation and project plans.
Signatories and Budgets..
Risks
Risk Register
Mitigation plans
Disaster recovery.
Audit file.
Opening Balances
System Demo / Live tsting
Can the current budget be captured.
When will it be able to be pre tested.
Allocate test and user acceptance sign-off.
Can the data be provided.
Is sub-sytems merged with out intervention.

15. Q & A