Practical Implementation

mSCOA: Budget Alignment Implementation

November 28, 2016

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With all municipalities and their respective municipal entities having to implement the Municipal Standard Chart of Accounts (mSCOA) as new classification framework for unified local government transactional information by 1 July 2017, there are still many practical implementation challenges facing local government in the time remaining. Due to mSCOA being a multi-dimensional chart which affects all business processes and the IT infrastructure (such as systems, programmes, data), the implementation of any mSCOA project is complex, requiring a comprehensive and clear project plan, diverse key skills & structures, steering committees & project management to ensure all milestones are achieved.

One of these key processes is the which is due by March 2017. Non-compliance with an mSCOA budget may result in administrative and compliance issues as well as subsequent actions (virements / condonements / irregular expenditure disclosures).

Please find a PDF link below to our article to provide basic guidelines and considerations applicable for municipalities when compiling, adopting and implementing an mSCOA compliant budget.

  • Alignment of old COA and mSCOA shortcodes to be implemented
  • Set-Up of Municipal Projects as per IDP within mSCOA Budget Compilation Tool
  • Review of MSCOA compliance within Draft MTREF Budgets as compiled by Municipal Departments
  • Compilation of Budgeted Financial Position and Budgeted Cash Flow Statements
  • Review Tariff Setting of Municipality
  • Populate National Treasury Budget Returns


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