Ducharme Consulting

Cloud-based automation of IPSAS, GRAP and MCS AFS

The Ducharme Dynamic AFS reporting e-solution allows for the upload of electronic financial details in a flat file, which is then converted and populated into a specific reporting framework. Usage examples include the conversion of an electronic year-end trial balance into a set of reporting formats, such as used for Annual Financial Statements, month-end trial balances reporting, interim financial statements and more.

The online AFS automation e-solution allows for the automation of public sector annual financial statements (AFS) where the financial statements are required to be prepared in accordance with the requirements of various accounting frameworks, such as International Public Sector Accounting Standards (IPSAS), Generally Recognised Accounting Practice (GRAP) and Modified Cash Standards (MSC). As such, this can be used by municipalities, TVET colleges, public entities, departments and any other organisation to prepare year-end financial statements, and be tailored for other ad hoc in-year financial reporting (www.dynamicAFS.com). The South African municipal edition based on the mSCOA Standard Chart of Accounts issued by National Treasury is available at mscoa.ducharme.co.za

The system allows for the upload of electronic financial data (e.g. Trial Balance, Chart of Account reports), conversion and population of such data into the specific accounting reporting framework tailored to entity. The system automate the data into the mapped elements within AFS structures such as the Statement of Financial Position, Statement of Financial Performance, Statement of Net Assets, Cash flow Statement, Budget Comparison Statement, Accounting Policies and Disclosure Notes. Usage examples include the conversion of an electronic year-end trial balance into a set of Annual Financial Statements as well as month-end trial balances into interim financial statements.

The online system stands independent from the entity operating systems, negating the need for additional IT and hardware and management costs and support.

Dynamic AFS: Standard edition Dynamic AFS: mSCOA edition

AFS Setup support

We not only just provide the AFS e-solution, but assist the entities with the initial system and AFS setup and year 1 alignment. This is to ensure the alignment of the trial balance structure and chart of accounts (and account numbering & naming) per the entity’s accounting package to the output AFS mapping.

The setup also ensures AFS comparative and narratives balancing from the prior reporting period as also provide technical support on account restructuring to allow for transaction and balance breakdowns for specific disclosures.
Built for multi-users

Our online system and costing structure provides for a multi-user approach. The system was developed to allow multiple users to simultaneously edit various parts of the AFS through section blocking, allowing users to work faster and update separate sections concurrently.

Team Functional includes online comments on the AFS itself (with master tracking section to reply, mark as resolved or to make as re-opened) as well as a live chat function (with the other users on the system at that time, which provides for general comments / discussions during this specific session the user is logged into) be it for progress allocations or real-time review notes.
System-aligned AFS

The programmatically mapped structure and composition links the respective votes to the disclosure line items for the Financial Performance (revenue, expenditure, appropriations) or Financial Position Votes (non-current assets & liabilities, community wealth, etc.) per the automated AFS.

Each transaction and balance category will be further allocated to a sub-category item, item type, movement, etc.

It also provides for the rollover of balances from the previous years for comparative information.
AFS focused functionality

Core Functionality includes Mapped TB to provide AFS outputs per specific reporting framework (e.g. IPSAS, GRAP, MCS); easy updates in the mapped TB for subsequent CoA changes; Pro-forma adjustments section for AFS journals; etc.

The system provides for a centralised point-of-reference for the practical AFS management processes; an Audit outcome repository with details of the key findings, the submitted AFS, detailed audit management report and centralised audit action plan, to allow users insight and focus to the AFS elements which require attention; and AFS Management plan which can be accessed and updated by users as a shared action-list for AFS related tasks.
Tailored AFS printing parameters & setup

Different information, data and layouts included in a set of financial statements result into practical printing setup considerations ranging from different page orientations, page-breaks for reporting tables onto single pages, width considerations such fit-to-page alignments, headers, and more. Our system allows for key printing parameters to be setup to assist with this. When a final production ready AFS are required, a final check and tweak of these setup parameters can be run.

Our system has also built in checks in the for the AFS references to be easily and automatically updated and renumbered for changes to (i) The AFS Policy structure and numbering; and (ii) The disclosure notes and sub-notes structure and numbering.

AFS data can be automatically transferred to word processing document in the final AFS layout and AFS data for use by entities for their annual report adjustment requirements.
Detailed AFS working papers

Detailed working papers functionality on the integrated data linking from the TB to the mapped AFS includes Lead sheets working papers can be exported to editable XLS format for inclusion in audit file to provide detail of AFS disclosures and TB data matching; External notes for working papers linked to specific AFS amounts, as direct source for the automation (see bottom image), as well as repository for supporting documents linked to specific AFS notes; Unauthorised expenditure comparison reports, based on actual and budget information included in the AFS (e.g. difference between actual amount, original budget, actual budget, final budget, variance, unauthorised variance / Thresholds reports based on percentage of account variance) (where such information is capture in the same chart of account structure); and other reports run include the automated population of the cash flows based on the information.