city of johannesburg - classifi · group overview. 4 core administration 14 core ... •sap skills...
TRANSCRIPT
08 September 2015
City of JohannesburgmSCOA ICF Feedback
2AGENDA
• Overview – CoJ Group
• Approach adopted
• AS-IS assessment
• Progress to date
• Risk register
• Phased solution
• Questions
3Group Overview
4Core Administration
14 Core Departments
Transport
Group Corporate Shared Services
JMPD
Community Development
Emergency Management Services
Housing
Health
Development Planning
Social Development
Environment and Infrastructure
Group Finance
Office of the Mayor
Office of the SpeakerEconomic Development
5APPROACH ADOPTED
• Departure point – Alignment to the Gazettte
• Process
• Co-sourcing
• Business knowledge – Core and Entities
• SAP skills – Current support partner
• Finance - Technical
• As is assessment
• Standardised processes
• CoJ SAP environment
• SAP Localisation
• Parallel processes – Account structure
6
mSCOA The Big Picture
7CoJ mSCOA Approach
Business Process Assessment
Financial & Systems Related Assessment
Business Integration Assessment
SCOA Segment Analysis / Current
Alignment
• Assess Business Process Landscape and determine alignment to the minimum SCOA process functional areas
• Financial and Systems Related assessment to determine current state of Technology and alignment to SCOA minimum requirements
• Business and Software Integration assessment to determine current state and alignment to SCOA minimum requirements
• Analyse SCOA Classification Framework (Unpack 7 Segments and determine current GAP and efforts to achieve alignment)
8Business Process Assessment
City of
Johannesburg
/ MOE'sC
orp
ora
te G
ove
rna
nc
e
Mu
nic
ipa
l B
ud
ge
tin
g, P
lan
nin
g a
nd
Fin
an
cia
l M
od
ell
ing
Fin
an
cia
l A
cc
ou
nti
ng
Co
sti
ng
an
d R
ep
ort
ing
Pro
jec
t A
cc
ou
nti
ng
Tre
as
ury
an
d C
as
h M
an
ag
em
en
t
Pro
cu
rem
en
t C
yc
le:
Su
pp
ly C
ha
in
Ma
na
ge
me
nt,
Ex
pe
nd
itu
re
Ma
na
ge
me
nt,
Co
ntr
ac
t M
an
ag
em
en
t
an
d A
cc
ou
nts
Pa
ya
ble
Gra
nt
Ma
na
ge
me
nt
Fu
ll A
ss
et
Lif
e C
yc
le M
an
ag
em
en
t
inc
lud
ing
Ma
inte
na
nc
e M
an
ag
em
en
t
Re
al E
sta
te a
nd
Re
so
urc
es
Ma
na
ge
me
nt
Hu
ma
n R
es
ou
rce
an
d P
ayro
ll
Ma
na
ge
me
nt
La
nd
us
e a
nd
Bu
ild
ing
co
ntr
ol
Ma
na
ge
me
nt
Va
lua
tio
n R
oll
Ma
na
ge
me
nt
Reve
nu
e C
yc
le:
Me
ter
Rea
din
g, B
illi
ng
Cu
sto
me
r C
are
, C
red
it C
on
tro
l a
nd
Deb
t C
oll
ec
tio
n
CoJ Core Administration
CoJ Revenue Management
City Power Johannesburg
Johannesburg Water
Johannesburg Roads
Agency
Pikitup
Johannesburg Parks and
Zoo's
Johannesburg Property
Company
Johannesburg
Development Agency
Johannesburg Markets
Johannesburg Social
Housing Company
Johannesburg Theartres
Metro Bus
9Assessment approach : Business processes
What the CoJ Must Achieve for
Financial Accounting Process
Alignment
Outcomes / GAPS: Identified Areas
for Business Improvements
Recommended Business Process
Improvement and Alignment
Financial accounting incorporates a host of
policies, processes and procedures
in order to operationalise the effective and
efficient recording and accounting of daily
financial transactions as well as month and
year end closure procedures and
transactions. The MFMA provides a
platform for the prescription of
norms and standards such as the
Standards of Generally Recognised
Accounting Practices (GRAP) which
have been designed and formulated based
on unique South African circumstances
(such as the VAT requirements which
must be accommodated by the financial
system) These processes and procedures
must give rise to monthly performance
represented by among others, the
Statement of Financial Performance,
Capital and Grant Performance,
Statement of Financial Position,
movement in net assets and cash
flow in the Section 71 in-year reporting
formats
Financial Performance
o Capital and Grant
Performance
o Statement of Financial
Position
o movement in net assets
o cash flow
o Section 71 Reporting
Section 7 1 Reporting Processes,
Guidelines
Adoption of Financial Closing
Processes,
Process integration to be
enhanced with respect to financial
accounting and Controlling
(Management Accounting)
Integration of Project Accounting
and Fund Accounting
10mSCOA Segment Assessment
City of Johannesburg /
MOE's Fu
nd
Fu
nc
tio
n
Mu
nic
ipa
l S
tan
da
rd
Cla
ss
ific
ati
on
Ite
m
Pro
ject
Re
gio
n
Co
sti
ng
CoJ Core Administration
CoJ Revenue Management
City Power Johannesburg
Johannesburg Water
Johannesburg Roads Agency
Pikitup
Johannesburg Parks and Zoo's
Johannesburg Property Company
Johannesburg Development Agency
Johannesburg Markets
Johannesburg Social Housing Company
Johannesburg Theartres
Metro Bus
11Financial and Related Systems
City of
Johannesburg /
MOE's
Tra
nsa
ction
s
Data
base
Te
chn
olo
gy &
Pla
tfo
rm
Se
curity
& A
uth
orisa
tion
Da
ta M
ana
ge
me
nt
(Mig
ration
)
Ap
plic
ation
Life
-Cycle
Ma
na
ge
me
nt
Ma
na
ge
me
nt In
form
atio
n
Syste
ms
Wo
rk-F
low
Po
rta
l
Ele
ctr
onic
Se
rvic
es
Mo
bili
ty
Tra
inin
g a
nd
E-L
ea
rnin
g
Da
ta C
aptu
ring
& F
orm
s
Arc
hiv
ing
CoJ Core
Administration
CoJ Revenue
Management
City Power
Johannesburg
Johannesburg Water
Johannesburg Roads
Agency
Pikitup
Johannesburg Parks
and Zoo's
Johannesburg
Property Company
Johannesburg
Development Agency
Johannesburg
Markets
Johannesburg Social
Housing Company
Johannesburg
Theartres
Metro Bus
12Example of phased compliance to Financial and related systems
Transactions
Database
Technology & Platform
Training and E-Learning
Data Capturing & Forms
Security & Authorisation
Work-Flow
Archiving
Electronic Services
Mobility
Data Management (Migration)
Application Life-Cycle
Management
Management Information
Systems
Portal
M
I
M
S
S
M
M
I
S
S
I
I
M
M
M
I
S
Mandatory
Important
Supportive
Adopted Weighting Model
Class Weighting Weighting Description
Weighting Percentage
Allocation
M Mandatory 70% Overall Weighting
I Important 20% Overall Weighting
S Supportive 10% Overall Weighting
Assessment Outcomes Model
Compliance
Measure
Compliance
Description
Outcomes: Compliance
Percentage Allocation
per Measure
FC Fully Compliant100% of Allocated
Weighting
PC Partially Compliant50% of Allocated
Weighting
NC Not Compliant0% of Allocated
Weighting
13Business Software Intergration
City of
Johannesburg /
MOE's
Inte
gra
ted
ER
P P
latf
orm
Bu
dg
et
Pla
nn
ing
In
teg
rati
on
GIS
In
teg
rati
on
Fin
an
cia
l S
tate
men
ts In
teg
rati
on
Uti
lity
Ap
plicati
on
/ F
un
cti
on
ality
Inte
gra
tio
n
Asset
Lif
e-C
ycle
Man
ag
em
en
t
Inte
gra
tio
n
Su
pp
ly C
hain
Man
ag
em
en
t an
d
Pro
cu
rem
en
t In
teg
rati
on
Hu
man
Reso
urc
e &
Payro
ll
Man
ag
em
en
t
Reco
ncilia
tio
n
Sta
tuto
ry R
ep
ort
ing
Req
uir
em
en
ts
Lo
cal G
ov
ern
men
t L
eg
isla
tio
n
Co
mp
lian
ce
CoJ Core Administration
CoJ Revenue Management
City Power Johannesburg
Johannesburg Water
Johannesburg Roads Agency
Pikitup
Johannesburg Parks and Zoo's
Johannesburg Property
Company
Johannesburg Development
Agency
Johannesburg Markets
Johannesburg Social Housing
Company
Johannesburg Theartres
Metro Bus
14CoJ Technology Footprint
City of
Johannesburg
/ MOE's
Co
rpo
rate
Go
ve
rna
nc
e
Mu
nic
ipa
l B
ud
ge
tin
g,
Pla
nn
ing
an
d F
ina
nc
ial
Mo
de
llin
g
Fin
an
cia
l A
cc
ou
nti
ng
Co
sti
ng
an
d R
ep
ort
ing
Pro
jec
t A
cc
ou
nti
ng
Tre
asu
ry a
nd
Cash
Man
ag
em
en
t
Pro
cu
rem
en
t C
ycle
:
Su
pp
ly C
ha
in
Man
ag
em
en
t, E
xp
en
dit
ure
Man
ag
em
en
t, C
on
tract
Man
ag
em
en
t an
d
Acco
un
ts P
ayab
le
Gra
nt
Ma
na
ge
me
nt
Fu
ll A
ss
et
Lif
e C
yc
le
Ma
na
ge
me
nt
inc
lud
ing
Ma
inte
na
nc
e M
an
ag
e
Rea
l E
sta
te a
nd
Res
ou
rce
s M
an
ag
em
en
t
Hu
ma
n R
es
ou
rce
an
d
Pa
yro
ll M
an
ag
em
en
t
La
nd
us
e a
nd
Bu
ild
ing
co
ntr
ol M
an
ag
em
en
t
Va
lua
tio
n R
oll
Ma
na
ge
me
nt
Reve
nu
e C
yc
le:
Me
ter
Rea
din
g, B
illi
ng
Cu
sto
me
r C
are
, C
red
it
Co
ntr
ol a
nd
De
bt
Co
lle
cti
on
CoJ Core
AdministrationManual / Caseware
MS Excel / SAP
ERPSAP ERP
SAP ERP &
ManualSAP ERP SAP ERP SAP ERP SAP ERP & Manual SAP ERP Manual
SAP ERP
(HCM)
TAS / BAS /
LIS
VA3 / Manual /
SAP IS-USAP CRM
CoJ Revenue
ManagementManual / Caseware
MS Excel / SAP
ERPSAP ERP
SAP ERP &
ManualSAP ERP SAP ERP SAP ERP SAP ERP & Manual SAP ERP Manual
SAP ERP
(HCM)
TAS / BAS /
LIS
VA3 / Manual /
SAP IS-U
SAP ERP - IS-
U
SAP CRM /
SAP ERP
City Power
JohannesburgExcel / Teammate /
Caseware
MS Excel / SAP
ERPSAP ERP
SAP ERP &
ManualSAP ERP SAP ERP
SAP ERP &
Greenfields
Manual / SIMS / SAP
ERPSAP ERP Manual SAP ERP
MRQC /
SUPRIMA
E-Respond /
SAP ERP
Johannesburg
WaterExcel / Exclaim /
CasewareManual SAP ERP
SAP ERP &
ManualSAP ERP SAP ERP SAP ERP Manual
SAP ERP /
IMQSManual
SAP ERP /
SWICON
MRQC / CDS
(Prep-Paid)SAP ERP
Johannesburg
Roads AgencyManual / Caseware Manual / JDE JDE JDE
JDE &
ManualJDE & Manual
JDE &
ManualJDE & Manual JDE & Manual JDE JDE JDE & Manual
Pikitup Manual / CasewareSAP ERP /
ManualSAP ERP
SAP ERP &
ManualSAP ERP SAP ERP SAP ERP SAP ERP SAP ERP Manual SAP ERP SAP ERP
SAP CRM /
SAP ERP
Johannesburg Parks
and Zoo'sManual / Caseware Manual Great Plains Great Plains
Great
PlainsGreat Plains Great Plains Great Plains / Manual
Great Plains /
FlagformsManual VIP Manual
Johannesburg
Property CompanyManual / Caseware
Nicor / PIMS /
ExcelNicor Nicor Manual Nicor PIMS / Nicor Manual / Nicor
Manual Nicor
& PIMSNicor VIP Payroll Manual
Johannesburg
Development
Agency
Sharepoint / ManualGreat Plains /
DIMS / RengisaGreat Plains Great Plains Manual Great Plains RENGISA Manual Manual
Sharepoint /
ManualVIP Payroll
Manual / Great
Plains
Johannesburg
MarketsManual Excel / JDE JDE JDE Manual JDE JDE Excel / JDE Manual / JDE Manual Payday
Latitude / SPS /
JDE
Johannesburg
Social Housing
Company
ManualManual / Pastel
Evolution
Pastel
Evolution
Pastel
Evolution
Pastel
EvolutionPastel Evolution
Pastel
Evolution
Manual / Pastel
Evolution
Pastel
EvolutionMDA
SAP ERP
(HR)MDA
Johannesburg
TheartresManual / SAGE
Excel / Manual /
SAGESAGE MS Excel Excel
Bank Manager /
SAGESAGE Manual
Manual /
SAGEManual
Pastel
PayrollManual
Metro Bus Manual Manual / Oracle Oracle Manual Manual OracleOracle /
ManualManual Oracle Manual Oracle Manual
15mSCOA Technical Enablement
SAP
Funds Management
Controlling
Project systems and Funds
management
Finance, Controlling and Funds
Management
Fund
Function
Region
Municipal standard Classification
Costing
Project
Item
16mSCOA – Way Forward
Reports have been distributed to the various MoEs.
Once comments have been received the individual entity
reports will be updated and finalised.
Adoption of an approach for the implementation of
mSCOA from a Group perspective.
Development of detailed implementation plans - Core and
entities.
The implementation of mSCOA is dependent on the SAP
Upgrade.
Common platform – 5 year strategy
Interim phased approach :
BPC
17mSCOA – Way Forward
SAP SA path :
• Conceptual build and prototyping until December 2015
• Documentation and testing of prototype until May 2016
• General availability in EHP 8 in June 2016.
18Risks
Area Risk Level Of
Audit Risk
Change management Lack of training initiatives MED
Business process
alignment
Alignment to best practice processesMED
Complexity and
volume of
transactions
COJ CORE to MOE’s transactional setup
Monthly volume of transactions.
Multitude of transactional types throughout the COJ Group
HIGH
Audit Compliance
GRAP alignment
Comparative figures
Audit approach
National Treasury SCOA may be in conflict with GRAP requiring system
reconfiguration
MED
Project risks
Delays in reconfiguring mSCOA after feedback from COJ may delay
implementation.
Deadline 1 July 2017
Conflicts with other projects/initiatives/service delivery
Retraining on staff/lack of staff skills
HIGH
Capacity and Skills
Lack of skilled resources
Internal Capacity issues
Lack of internal expertise and capacity to perform assessment
procedures
Unwillingness of MOEs to change system to be one on instance of ERP
Disruptions in daily operations due to implementation
HIGH
19Risks
Area Risk
Level
Of
Audit
Risk
Financial and related
system requirements
Delays in the upgrade of CoJ ERP
No central single ERP instance
Multiple disparate systems
Multiple interfaces
Infrastructure strategy not aligned to application
strategy
No unified Change Approval Board (CAB) process
End of life on SAP 4.6 support
New General Ledger implementation a re-
implementation of mSCOA
Interfaces from MOE's very manual
Complexity of implementation due to multitude of
external systems which must be modified
Unauthorised customisation of new implementation
HIGH
20Year end planning
Thank you