1. mSCOA Version 5.4 and changes to the classification framework
Presented by National Treasury: Chief Directorate Local Government Budget Analysis | 22 June 2015

2. Costing Segment Split between “recoveries and charges” Yes Add Change
Posting Level and Breakdown
Principle/ Application
Definition
Account
Split between “recoveries and charges”
Yes
Add

3. Function Segment
Change
Posting Level and Breakdown
Principle/ Application
Definition
Account
Change “applicability” Non-core – Community and Social Services for:
Libraries and Archives
Museums and Art Galleries
Yes
District Municipalities
Add
Consider changing:
Waste Management – Street Cleansing
Public Safety – Cleansing
[Research needed]

4. Funding Segment Accounts changed for Equitable Share: Basic Services
Posting Level and Breakdown
Principle/ Application
Definition
Account
Accounts changed for Equitable Share:
Basic Services
Institutional Component
Community Services
Revenue Adjustment
Correction and Stabilisation Factor
Yes
Add
Research/Information needed:
Posting Level District Municipality and Provincial Government
DORA – Capital versus Operational

5. Item Segment – Liabilities
Change
Posting Level and Breakdown
Principle/ Application
Definition
Account
Current
Transfers and Subsidies –unspecified”
Breakdown
Yes
Added
Defined Benefit Obligations
Pending: VAT Accounts
Expand?
Current and Non-current
Borrowing: "non-annuity loans”
Deleted
Other Current Financial Liabilities: Concessionary Loans
Provision and Impairment:
Litigation
Trading Services
“Bonus”
Description

6. Item Segment – Current Assets
Change
Posting Level and Breakdown
Principle/ Application
Definition
Account
Current Portion of Non-current Receivables/Non-current Receivables:
Staff Loans/Recoveries
Description
Receivables from Non-exchange:
Monthly Billing changed to include: “interest”.
Added
Trade and Other Receivables from Exchange Transactions:
Trading and Customer Service Debtors
Intercompany/Parent Subsidiary Transactions – Impairment
Deposits
Transfers and Subsidies - Unspecified

7. Item Segment – Non-current Assets
Change
Posting Level and Breakdown
Principle/ Application
Definition
Account
Investments: Listed/Unlisted Bonds and Securities
Description
Receivables from Non-exchange:
Monthly Billing changed to include: “interest”.
Added
Trade and Other Receivables from Exchange Transactions:
Trading and Customer Service Debtors
Intercompany/Parent Subsidiary Transactions – Impairment
Deposits
Transfers and Subsidies - Unspecified

8. Item Segment – Expenditure
Change
Posting Level and Breakdown
Principle/ Application
Definition
Account
Bulk Purchase: Green Electricity and Renewable
Description
Outside Services:
Accounting and Auditing
Transport Services
Added
Consultants and Professional Services: Accounting and Auditing
Contractors
Maintenance and Unspecified Assets
Electrical
Yes
Depreciation and Amortisation: Infrastructure Electricity

9. Item Segment – Expenditure (Continue)
Change
Posting Level and Breakdown
Principle/ Application
Definition
Account
Inventory:
Consumables
Agricultural
Added/Deleted
Operational Cost:
Cash Discount/Insurance Claims/Office Decorations
Indigent Relief/Hire Charges
Statutory Payments other than Income Taxes
Changed
Added
Description
Transfers and Subsidies: Unspecified

10. Item Segment – Project Buildings changed to include “other structures”
Posting Level and Breakdown
Principle/ Application
Definition
Account
Buildings changed to include “other structures”
Description
Operating Cost
Changed

11. Item Segment – Revenue (Continue)
Change
Posting Level and Breakdown
Principle/ Application
Definition
Account
Fines, Penalties and Forfeits: Fines – Pound Fees
Changed
Licences or Permits:
Activities on Public Roads
Drivers Licence Application and Duplicate Licence
Learner Licence Application
Deleted/ Combined
Transfers and Subsidies: Unspecified
Added

12. General
Reconsider posting and breakdown
Application
Changes have been incorporated until 11 June 2015
FAQ lock down 3 July 2015 for influencing Version 5.4
Version 5.4 to be released by 24 July 2015

13. MSCOA : Position Paper Status Report

14. Discussion Paper/Position Paper
No Legal Status
Part of the “Project Documents”
Not replacing NT guidelines, circulars, practice notes or implementation guidelines
Consolidate information for various source
Checklist for compliance to the Standards of GRAP
Recording revision of reporting
Linking mSCOA Posting Level accounts
FAQ to date not concluded addressed
Internal acceptance prior to consultation with stakeholders
End result may result in revision of NT documents or incorporation in circulars
Consolidate information for various sources/opinions/views
Defining terminology relating to the subject matter
Document the position taken by National Treasury on subject matter

15. Discussion Paper and Status
Subject Matter
Status
Timeline for Completion
Employee Related Cost
Approval by Technical Work Group
September 2015
Provisions, Contingent Liabilities and Liabilities
To be drafted
Inventory
Transfers and Subsidies
Exchange versus non-exchange and related matters
Fixed and Intangible Assets
Reserves and Funds
Any matters not listed
Reports
October 2015

16. Position Paper and Status
Subject Matter
Status
Timeline for Completion
Short Codes and Mapping
Finalised
ICF 22 June 2015
Reporting including:
General Ledger Detail
Materiality and Reporting
Comparatives and Restatements
Correction of Prior Periods
Municipal Entities
Month and Year-end Closure
Partially Drafted
Additional sections to Technical Work Group
August 2015
NERSA
October 2015
DWA including Water Balance Reporting
VAT
Cost of Free Basic Services and Revenue Cost of Free Basic Services
Research taking place