1. INVENTORY Presenter: SCOA Technical Committee | National Treasury | March 2013

2. 2 BACKGROUND Pre 1 April 2013 SCOA consumables were a sub-category of inventory; Post 1 April 2013: INVENTORYCONSUMABLE Key Principle Goods that are essential for satisfying the service delivery obligation of a department. Goods that are not essential for satisfying the service delivery obligation of a department. Reporting Expense in Statement of Financial Performance Annexure 6 Expense in Statement of Financial Performance Management and Control Required

3. 3 APPROACH a)Searched the entire SCOA for items that meet the definition of inventory and consumables (e.g. items prev. in operating payments); b)Split the old Inventory category into Consumables and Inventory category at the same level, and added relevant sub-categories; c)Renamed duplicates – items that were inventory & consumables (Medicine and first aid kits);

4. 4 APPROACH d) Identified categories that would be made available only to specific departments; e) Operating Payments category caters for services that are related to the operations of the department The following items are goods thus removed from Operating Payments : - Gifts - Library Material - Achievements and Awards

5. OLD VS NEW Inventory categories on level 4 reporting 5

6. EXAMPLE DETAIL Reporting level four (4) categories INV: CLOTHING MATERIAL & ACCESSORIES Corporate Gear Uniform and Protective Clothing Needlework Accessories INV: OTHER SUPPLIES Laboratory Chemicals and Supplies Military Stores Ammunition and Security Supplies Assets held for distribution Printing Supplies - ID Books and Passports CONS SUPPLIES Gifts and Awards Household Supplies First Aid Kit Bags and Accessories CONS: STATIONERY, PRINT &OFFICE SUPPLIES 6

7. 7 SPECIFIC ITEMS FOR NOTING –Ammunition and security supplies = inventory; –LTSM = inventory; –Wheelchairs = inventory if bought for distribution or sale, else asset if used in hospital / clinic; –Assets bought for distribution = inventory e.g. school furniture, municipal dustbins, library materials; –Medicine = inventory for some sectors, e.g. Health sector, and consumables for rest

8. INVENTORY THANK YOU 8