Technical & training
mSCOA: Year One Considerations
February 18, 2017
With the start on the 2017/18 financial years, all the mSCOA pilot municipalities have entered their second year of transacting on mSCOA, with the majority of the mSCOA non-pilot municipalities having started their first time transacting per the mSCOA structure and a few municipalities short thereof.
All municipalities should have planned (IDP) and budgeted according to the new mSCOA charts, but are now required to daily capture the actual transactions in line with the planning and budgets and new structure after consideration of the below mSCOA segments and business processes.
mSCOA Year One implementation
mSCOA Year One implementation of mSCOA required that municipalities need to transact on a new system based on amended processes and procedures. As this is new territory for municipalities, Treasuries (National and Provincial), staff, service providers and other support structures, many of the challenges are attended to on a reactive, rather than pro-active basis. Some of the implementation challenges include:
Actual management and oversight of first-time mSCOA Adoption and mSCOA transaction processing (i.e. posting of transaction to new Votes and SCM processes to manage this) system consideration for transaction processing (parallel running for capturing of transactions / incomplete data sets in systems) or manual processes for which no sub-system exist (e.g. budget & costing modules);
Setup and realignment of data required for further processes (e.g. segment allocation of transactions, budget setups, mSCOA costing, realignment of asset registers, AFS opening balances/comparatives)
Interim and annual reporting based on old requirements but new data sets with compatibility considerations (e.g. S71 reporting, comparatives and open balances for interim and AFS, the information provided in non-human readable data-string format);
Capacity building and support on the above and other challenges.
Please find herewith more details on some of the first time adoption challenges in Year One for mSCOA, and support we can provide in this regard.
mSCOA Year One brochure & contact details
Please click the PDF link below for our brochure for more information on first-time adoption challenges in Year One for mSCOA, and support we can provide in this regard.Download PDF