Practical Implementation

mSCOA: Budget Alignment Implementation

November 28, 2016

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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