STANDARD CHART OF ACCOUNTS (SCOA)WORKSHOP

Introduction

SCOA ROADSHOWS – NATIONAL AND PROVINCES

Presenter: SCOA Technical Committee| National Treasury| March 2012

OVERVIEW

• Changes to the SCOA – Why?• Inconsistencies

• Changes – 1 April 2012

• Capturing of Budgets• Capturing of budgets on the Financial System (BAS)

• Summary: Important issues to remember

2

WHY CHANGE THE SCOA?

3

Deal with inconsistencies in the Economic Classification

The economic classification:

The three segments Project, Asset and Item together constitute the economic classification in the SCOA environment.

An inconsistency:

An inconsistency is the incorrect allocation in one or more, of the three segments in a transactional combination.

IMPACT OF INCORRECT COMBINATION

Influences the following areas:

• In-year monitoring reporting

• Infrastructure reporting

• Adjustments Estimate – Virements, roll-overs etc.

• Annual Financial Statements

• Asset register

• Detail analysis on data from BAS e.g. contractors related to infrastructure spending

• Policy analysis

• Reporting to TCF, Budget Council, Presidential Coordinating Committee and Parliamentary committees

• Formal publications e.g. Budget Review, Provincial Budgets and Expenditure Review, MTBPS

4

DEALING WITH INCONSISTENCIES

Currently available interventions :• Start transacting with the “Project Segment” on the system• Correct capturing of budgets on the system• Use of Budget Blocking• Category Links set up by departments• Inconsistencies Tool (available from the SCOA Website)• In-house training (Capturers and Authorisers)• Proper User access control, i.e. Security profiles & Group profiles

• Systems Controllers and Budget Controllers first line of defense• SCOA Training through PALAMA

Reforms agreed with PAG’s and OAG:• Review of the Chart of Accounts (SCOA)• More category links built into the system (Transaction rules)• Enforced sequence when processing transactions (Project Segment)

5

MAIN CHANGES – 1 APRIL 2012

Category links built into the system – Transaction rules for main categories

Chart will provide for 2 types of departments:

– Departments not recording project spending – projects mainly outsourced, mainly purchase of Stand Alone items

– Departments recording Own Account construction of Capital Assets (Public Works, Road and Transport, Agriculture, etc.)

Same chart for all, restricted number of accounts to first group

Consultation between “Own Account Departments” and SCOA Committee on access to items

6

MAIN CHANGES – 1 APRIL 2012

Restriction of Transfer Payments

Reporting on Information and Communication Technology (ICT) Spending

New items for recording outsourced projects

Changes to the Asset Segment to improve infrastructure reporting

Changes to the Fund Segment to cater for Donor Funding

7

THE END

Thank You

Questions?

SCOA Contact Details:

Helpdesk: 012 315 5311

Email: scoa@treasury.gov.za

Website: http://scoa.treasury.gov.za

8