Presentation on theme: "MSCOA Integrated Consultative Forum Nelson Mandela Bay 25 / 26 February 2015 Presented by National Treasury: Chief Directorate Local Government Budget."— Presentation transcript:
1mSCOA Integrated Consultative Forum Nelson Mandela Bay 25 / 26 February 2015 Presented by National Treasury: Chief Directorate Local Government Budget Analysis
2mSCOA Integrated Consultative Forum Agenda Item: Assessment of mSCOAreadinessPresented by National Treasury: Chief Directorate Local Government Budget Analysis
3Presentations & Regulation Promulgation Road till hereInitial ConsultativeProcessPresentations & Regulation PromulgationWe believe some of the pilot municipalities are almost there but now need to see and test. We will therefore embark on a site visitation cycle to obtain the factual positions and updating our risk registers and assist with risk mitigation plans.
4First Question ? Failure is not an option! We crushed Y2K. We achieved MTREF budget reforms.In year reports done consistently by 278 Municipalities.We will achieve mSCOA !
5Conceptual test vs actual Site visitsProject charters and risk registersNeed to see transactionsBudget toolDemo data on Transactions.All Sub systems.CostingAssetsImplementation plans.Current Risks to be discussed and resolved.Budget for project approved.Fall over and disaster recovery plansOpening BalancesPrior year FiguresEnsuring that the project is owned by the pilots.Review of risk register.Signed SLA’sProject Charters Signed.Live transaction posting and data extraction to be physically demonstrated .
6Pre Implementation Plans Our Major Tick BoxesDoes the system provider / Municipality have a fully thought through project plan?Pre Implementation PlansDoes the project plan cater for disaster recovery fall over plans / The Y2K effect?Does it include the current version to be replaced by un-tested versions of replacement systems? If so what is the Specific Audit risk mitigation plans?What resources have been allocated to these plans and are all resources secured?Institutions e.g.. National Treasury and Provincial Treasury,Service Providers and ICT providers,In House Municipal staff designated and dedicated.Are outside parties contracted and secured?
7Our Major Tick Boxes cont. Is there current activity at the shop floor?Demo data / “Parallel testing”To test the budget capturing of all 7 segments of mSCOA?Have the Municipalities started to retro-fit the current Vote structure to mSCOA / Managing the Audit Opening Balances?To Test the synchronisation up stream as well as drilling down stream between Sub ledgers to the GL?Is the development far enough progressed to test the portal access and ETL (Extract transfer and Load Protocols) requirements?Will the Pilots be able to transact on 1 July in the New year?Are short codes going to be used and is there a one to one relationship with the Chart and segments?How ready is the pilots for normal in year and Budget reporting?What is the current audit opinion and how does it impact on piloting?
8Achieving The Objective What will need to be done?Achieving the resultsSite visits to all pilots and Metro’sPhysical testing needs to be proven live.Load and database acceptance will be tested.Project plans will be reviewed and proposals to rectify will be made.Signed Copies of MOU and SLA need to be provided.How and who is dealing with the Audit file in terms of migration conversion to mSCOA, is this a upgrade?Continued ongoing monitoring and support will need to be agreed between Provincial Treasuries, Municipalities and 3rd parties.
9Achieving The Objective What the project isIt’s a Pilot.It’s testing of the up load of and configuration of the GL transactions.It’s the proofing grounds of mSCOA for both the concept as well as the systems in use.It’s the testing of the classifications / chart for completeness.It’s an organizational Reform.
10Achieving The Objective What the project is notA replacement of the current reporting requirements for budget, in-year and annual reporting.A National Treasury managed project, ( We are only facilitating and not an integral part of the implementation project.)Not a mere compliance to regulations.Not an IT or Financial only reform. “Need to be adopted organization wide”.
11Pilot Site Visits - Attendees required. Municipal ManagerBudget & TreasuryService ProvidersNon Financial ManagersNTPT
12Pilots Visits to Establish Project Governance & Conduct Readiness Assessments Municipalities / Metro'sProposed datesEngagement PartiesSenqu Local Municipality04-MrtEastern Cape PT,SebataSol Plaatje Local Municipality05-MrtNorthern Cape PT,Business Connexion,PaydayElias Motsoaledi Local Municipality09-MrtLimpopo PT,CISC ,VIPVictor Khanye Local Municipality10-MrtMpumalanga PT,SebataNkangala District MunicipalityMpumalanga PT,CISC ,VIPEkurhuleni Metro11-MrtGauteng PT,Business ConnexionMerafong Local Municipality12-MrtGauteng PT,BIQTlokwe Local MunicipalityNorth West PT,VestaSetsoto Local Municipality13-MrtFree state PT,CISC ,VIPKnysna Local Municipality16-MrtWestern Cape PT,RdatauMgungundlovu District Municipality17-MrtKwaZulu-Natal PT,Sage Evolution,VIPRichmond Local MunicipalityKwaZulu-Natal PT,FujitsuuMhlathuze Local Municipality18-MrtKwaZulu-Natal PT,Fujitsu,VIPDrakenstein Local Municipality23-MrtWestern Cape PT,Business Connexion,DRLOverstrand Local Municipality24-MrtWestern Cape PT,Bytes Technologies,Payday
13LogisticsThe Pilot Municipality will need to arrange the following logistically:Availability of key personnel for the engagement.Invitations to the PT and Service Providers.Ensure that the Service Providers is available.The venue and time allocations.Kindly note that the dates as given needs to be adhered to.
14Proposed Agenda Section 71 / Budgets / Statutory reports Current formats remainNT to build and test against old formats.Project CharterRoles and resourcesDetail implementation and project plans.Signatories and Budgets..RisksRisk RegisterMitigation plansDisaster recovery.Audit file.Opening BalancesSystem Demo / Live tstingCan the current budget be captured.When will it be able to be pre tested.Allocate test and user acceptance sign-off.Can the data be provided.Is sub-sytems merged with out intervention.