SCOA Formal Consultation

DRAFT MUNICIPAL REGULATION ON A
STANDARD CHART OF ACCOUNTS (SCOA)

-
Formal Consultation: Provincial Treasurers,
Municipalities and Stakeholders
Presented by National Treasury: Chief Directorate Local Government Budget Analysis September to December 2013
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Programme Outline
1. SCOA The Local Government budget and financial management reform agenda
Background to the project initiative for a SCOA for Municipalities
Regulation The Municipal Regulation on a Standard Chart of Accounts (SCOA)
2. Conceptualising Illustrating some basic transactions to conceptualise segments within a

transaction environment
SCOA
Understanding the classification framework and segment detail for Item,

3. SCOA Segments Function, Fund, Regional Indicator, Costing and Project
4. Practical Typical examples to apply within the SCOA Classification Framework
Example
5. SCOA Activities preparing for implementation

Comment process informing Version 5 and final SCOA Regulation
Implementation
2
1.
SCOA Regulation
Outline:
The Local Government budget and financial management reform agenda

Background to the project initiative for a SCOA for Municipalities
The Municipal Regulation on a Standard Chart of Accounts (SCOA)
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Local government financial management reform
roadmapLGBAs core business
Champion the Local Initiate, facilitate and oversee all municipal budget reforms with
Government Budget Reform emphasis on the Municipal Budget and Reporting Regulations, in-
Agenda year reporting and grant monitoring frameworks
Support and advise municipalities on budget issues

Support the development of
Prepare annual budget circulars to guide budget preparation
credible, funded and
NT assess budgets prior to implementation (17 non-delegated) and
sustainable LG budgets PTs deal with 261 delegated municipalities
Monitor the implementation of Monitor, oversee and report on municipal budget implementation
LG budgets and conditional Collect, analyse and consolidate municipal information
grants publish information Publish budget implementation information on a quarterly basis in
terms of S71 of the MFMA
Ensure compliance and

oversight with conditions of Monitor implementation of the intergovernmental grant system
DoRA (annual) Ensure the recovery of unspent and uncommitted conditional grants
Support the Implementation of Monitor compliance with budget related prescriptions in the MFMA
the MFMA and MBRR Assist in identifying municipalities in financial distress
Achievements to date
We have developed a budgeting system for local government including

the promulgation of the Municipal Budget and Reporting Regulations
standardized formats for the compilation of municipal budgets including a
sophisticated funding assessment tool;
We have developed a reporting system for local government including a
Local Government Database - Institutionalised a culture of monthly
reporting in terms of S71 of the MFMA by all municipalities and
publishing the results on a regular basis;
We have developed a grant monitoring system to ensure compliance
to the legislative framework (DoRA), tracking of grant performance,
providing certainty to municipalities as it relates to grant receipt, and
publishing quarterly grant performance.
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Resulting in the routine publication of LG budget
and performance information
Consolidated MTREF budget information for all

municipalities
Quarterly Section 71 reports
State of Municipal Finances report annually
Over and under expenditure report to Parliament
Local Government Budgets and Expenditure
Review
Report on the Tabling of budgets to Parliament
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But challenges still exist in the LG accountability
cycle
Data challenges:
278 different municipal charts of accounts (COA) - aggregation of

budget and performance information extremely difficult owing to inconsistent
classification across the entire LG accountability cycle
Quality of municipal information is compromised due to lack of uniform
classifications of revenue and expenditure items
Lack of consistent information across the IDP, Budget, SDBIP, IYM and
AFS
Compromises monitoring and oversight by Councils, DCoG, treasuries
and legislatures
Compromises governments ability to formulate coherent policies
affecting local government, and its ability to use the budget as a
redistribution tool to address poverty and inequality
Municipalities continuously change and amend detail COA No
consistency year-on-year
Impedes transparency, accountability and overall governance in the daily,
monthly and yearly activities of municipalities
Lessons learnt from the National and Provincial
reform process
National and Provincial Budget Reform experience
Collecting of budget information at a high-level problematic
Financial information needs to be recorded in detail in the financial
system
Can only be achieved through a standard chart of accounts
Accuracy of information embedded in the principles underlying SCOA
Widespread Capacity Shortages
SCOA to be centrally coordinated by National Treasury
Practitioners limited to selecting from the CORE but not changing
Conceptually SCOA is the detailed data elements
Summarised to produce budgets or financial reports
Reduce variances
Implementation Challenges
Diverse system environment
Responsibilities
Capacity
Taking the LG reform agenda forward
Next logical step develop and implement a SCOA for

Local Government:
Improve credibility and reliability of financial data
General business processes and applications
NB: an area requiring urgent attention if sustainable service

delivery and improvements are to be achieved through the
systematic allocation and monitoring of the utilisation of
financial resources!
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Linkage and role of SCOA within the overall
Municipal Accountability Cycle
5 year Strategy
IDP
Three year Budget
Focus of MBRR Budget
Annual Plan to Implement
SDBIP
In-year
Monitoring
Focus of MBRR Reporting Oversight
Next Project
Annual Reports
Financial
Statements
Annual
Report
Standard Chart of Accounts (SCOA)
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Benefits to be derived from SCOA include,
among others
SCOA design provides for alignment of spending and revenue collection based on classifications
consistent with national/provincial departments within the uniqueness of local government
Framework provides for coding of transactions for classifying budgeting and financial reporting
labels for revenue, expenditure, assets, liabilities and net assets
Ensuring proper alignment between the budget, reporting and accountability informing financial
sustainability & evidence based financial management
Benefits from standardising:
Transparency reporting and comparative analytical purposes
Reporting flexibility extraction of information populating various reporting systems
Comparability Benchmarking, standards and measures
Uniform transaction process improved mobility of practioners
Report automation customised reporting within financial application
System Design provides certainty to industry
XBRL set the basis for further standardisation following global best practices
Consolidation meaningful consolidation and extraction at different levels of detail
Single version of the truth various systems have the same basis for classification
ensuring consistency in financial information disseminated into the public domain
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Background to the project initiative for a SCOA
for Municipalities
Design Principles: Overall
1. Constitution and MFMA

2. Transparency and Accountability
3. Clear/simple account labels incorporating all transaction
types
4. Whole of local government and whole of government
reporting
5. GRAP and budget format alignment
6. Data comparability from an analytical perspective
7. International standards and guidelines
8. Identified stakeholders consulted to relief reporting
burden
Standardisation of data provides for standard business operating
processes and procedures contributing to improved transparency,
accountability and overall governance
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for Municipalities
Stakeholder Consultation
Departmental SCOA confirmed importance of stakeholder involvement

Municipal SCOA is critical part of broader financial reform process
Initiative is collective effort led by IGR, OAG and BO (Project Steering
Committee)
Progress on SCOA reported to TCF (Technical Committee for Finance)
External Stakeholder Groups
A. Selected Municipalities
B. Provinces and Municipalities
C. System Vendors
D. National Departments and Entities
E. Professional Bodies
F. Regulators
G. Advisors and Consultants
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Background to the project initiative for a
SCOA for Municipalities
SCOA VERSION 1 - INTITIAL RESEARCH
Studied/identified potential changes between the SCOA for Departments/National
Treasury Annual Financial Statement Template for Municipalities
Studied/identified potential changes between the SCOA for Departments/Municipal
Budget and Reporting Regulations and Return Forms
Selected information from 5 Pilot Municipalities
Phase 1 Requested clarification of information from the selected Pilot Municipalities
Formulate Version 1 of the SCOA, agreed on the segments collectively being the
SCOA for Municipalities and the Overall Design Principles
SCOA VERSION 2 - STAKEHOLDER INVOLVEMENT

First external stakeholder information sessions
Meeting with Pilot Municipalities selected in Phase 1
More potential municipalities involved for piloting of the SCOA

Phase 2 First interactions with identified system vendors
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Background to the project initiative for a
SCOA for Municipalities
VERSION 3 - INTERACTION WITH SPECIFIC STAKEHOLDERS
Engagements with System Developers
User Group Meetings
Identified and interacted with more potential pilot municipalities
NERSA Meetings and provision in SCOA
National Department Interactions: Water Affairs, Trade and Industry and
Human Settlements
Set-up of SQL Database and Illustration
Road shows and Workgroups
Internal National Treasury consultation with stakeholders
Phase VERSION 4 - PRE-SCOA REGULATION

Align Budget Reporting Format and Annual Financial Statement Template
Complete detail accounts for SCOA classification tables
Define all levels and labels
3 Add "posting levels" and "account numbers"

Standard Terminology List
Further develop SQL Database for testing the classification framework
Identify potential tests for building illustrations in SQL Database
Draft Regulation for "formal consultation" process for finalising the SCOA
Regulation
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for Municipalities
Legal Framework
Guided by Constitution and MFMA
Section 215(1) of the Constitution states that: national , provincial and

municipal budgets and budgetary processes must promote transparency,
accountability and effective financial management of the economy, debt and the
public sector
Section 216(1) of the Constitution states that: national legislation must
establish a national treasury and prescribe measures to ensure both
transparency and expenditure control in each sphere of government by
introducing:
i. GRAP
ii. Uniform expenditure classification SCOA/General Ledger
iii. Uniform treasury norms and standards
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for Municipalities
Legal Framework (Continue...)
Section 168 of the MFMA states that: the Minister of Finance, acting with
the concurrence of the cabinet member responsible for local government, may
make regulations for, among other things (p) any other matter that may
facilitate the enforcement and administration of the Act
Project give effect to Section 216(1) of the Constitution
SCOA to be prescribed ito section 168 of the MFMA to ensure compliance by
ALL MUNICIPALITIES and MUNICIPAL ENTITIES
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for Municipalities
Risks Associated with the Implementation of the SCOA road map
Various systems and multiple vendors vs transversal application for
provincial/national departments
May 2013:
Financial applications: 13 system vendors
8 major vendors covering 259 municipalities
5 minor vendors covering 14 municipalities
5 In-house developments
Concurrently runned special projects relating to business processes and systems to
mitigate eventualities associated with SCOA implementation. Primary objective to
identify financial systems in operation
No mapping of SCOA as an implementation option Must be coded in the system
SCOA dimensions assessed against system functionality to determine ability to
facilitate the implementation of SCOA Vendors indicated multi-dimensional chart
could be accommodated; possible reconfiguration and refinements required
Costs and funding limitations
Change management
Full municipal compliance 1 July 2016 (2016/17 MTREF)
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for Municipalities
SCOA is:
In-house developed
Consideration given to alignment to national/provincial departments
Accommodating GRAP requirements
Designed with the input from all stakeholders not limited to NT
Uniqueness of Municipalities
Extensively tested with sample data from municipalities
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The publication of the SCOA Regulation for
comment
LOCAL GOVERNMENT: MUNICIPAL FINANCE MANAGEMENT ACT, 2003:
PUBLICATION OF DRAFT MUNICIPAL REGULATIONS ON STANDARD CHART
OF ACCOUNTS FOR PUBLIC COMMENT
Published for comment by the Minister ito MFMA 2003 (Act No. 56 of 2003)
Comment to be submitted by:-
email: jan.hattingh@treasury.gov.za
fax: (012) 395-6553
post: The Director-General
National Treasury
Private Bag X115
Pretoria, 0001
hand: Room HB-03.05
40 Church Square
Pretoria
The draft regulations are also available at www.treasury.gov.za under
http://mfma.treasury.gov.za/RegulationsandGazettes or Mr Jan Hattingh can be
contacted for a copy.
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The SCOA Regulation
CONTENT [Pages 1-15]
PREAMBLE
CHAPTER 1: INTERPRETATION, OBJECT AND APPLICATION
1. Definitions
2. Object of the Regulations
3. Application of these Regulations
CHAPTER 2: SCOA FOR MUNICIPALITIES AND MUNICIPAL ENTITIES

4. Segments and classification framework for SCOA
5. Implementation requirements
CHAPTER 3: MINUMUM BUSINESS PROCESS AND SYSTEM REQUIREMENTS

6. Minimum business process requirements
7. Minimum system requirements
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The SCOA Regulation
CHAPTER 4: TECHNICAL COMMITTEE FOR SCOA
8. Establishment of Technical Committee for SCOA
9. Composition of SCOA Technical Committee
10. Functions of SCOA Technical Committee
11. Meeting of SCOA Technical Committee
CHAPTER 5: IMPLEMENTATION OF STANDARD CHART OF ACCOUNTS

12. Responsibilities of municipal councils and boards of directors
13. Responsibilities of accounting officers
CHAPTER 6: GENERAL
14. Access by National Treasury
15. Postponement of implementation and exemption
16. Short title and commencement
SCHEDULE: SEGMENTS OF SCOA FOR MUNICIPALITIES AND MUNICIPAL ENTITIES
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The SCOA Regulation Definitions (1)
Act means the Local Government: Municipal Finance Management Act, 2003 (Act No.
56 of 2003);
board of directors, in relation to a municipal entity, has the meaning assigned to it in
section 1 of the Local Government: Municipal Systems Act, 2000 (Act No. 32 of 2000);
business processes means the set of activities taking place from the initiation of a
process within a municipality or municipal entity to the completion thereof;
classification framework means the classification framework provided for in the
standard chart of accounts;
Director-General means the Director-General of the National Treasury;
general ledger means the central depository of accounting data transferred from all
sub-ledgers;
minimum business process requirements means the set of minimum components
of all business processes determined in terms of regulation 6;
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The SCOA Regulation Definitions (2)
minimum system requirements means those specifications for an integrated
software solution, incorporating an enterprise resource management system determined
in terms of regulation 7;
municipal entity has the meaning assigned to it in section 1 of the Local
Government: Municipal Systems Act, 2000;
municipal council has the meaning assigned to it in section 1 of the Local
Government: Municipal Structures Act, 1998 (Act No. 117 of 1998);
municipality has the meaning assigned to it in section 1 of the Local Government:
Municipal Systems Act, 2000;
SCOA Committee means the Technical Committee for the Standard Chart of
Accounts for municipalities and municipal entities established by regulation 8;
standard chart of accounts means a multi-dimensional classification framework
providing the method and format for recording and classifying financial transaction
information in the general ledger forming part of the books of account containing a
standard list of all available accounts.
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The SCOA Regulation Chapter 1
Object of these Regulations
2. The object of these Regulations is to provide for a national standard for the
uniform recording and classification of municipal budget and financial
information at a transaction level by prescribing a standard chart of accounts for
municipalities and municipal entities which
(a) is aligned to the budget formats and accounting standards prescribed for
municipalities and municipal entities and with the standard charts of accounts
for national and provincial government; and
(b) enables uniform information sets recorded in terms of national norms and
standards across the whole of government for the purposes of national policy
coordination and reporting, benchmarking and performance measurement in
the local government sphere.
Application of these Regulations
3. These Regulations apply to all municipalities and municipal entities.
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CHAPTER 2 ((Continue...)..) - STANDARD CHART OF ACCOUNTS FOR
MUNICIPALITIES AND MUNICIPAL ENTITIES
(2) The financial and business applications or systems used by a municipality or

municipal entity must
(a) provide for the hosting of the general ledger structured in accordance with
the classification framework determined in terms of regulation 4(2);
(b) be capable of accommodating and operating the standard chart of
accounts;
(c) provide a portal allowing for free access, for information purposes, to the
general ledger of the municipality or municipal entity, by any person authorised
by the Director-General or the Accounting officer of the municipality.
(3) Each municipality and municipal entity must have, or have access to, computer
hardware with sufficient capacity to run the software which complies with the
requirements in sub-regulation (2).
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CHAPTER 3 - MINIMUM BUSINESS PROCESS AND SYSTEM REQUIREMENTS
Minimum business process requirements
6. (1) The Minister may, by notice in the Gazette, determine minimum business
process requirements for municipalities and municipal entities to enable
implementation of regulations 4 and 5.
(2) Each municipality and municipal entity must implement the minimum business
process requirements by the date determined in the notice referred to in sub-
regulation (1).
Minimum system requirements
7.(1) The Minister may, by notice in the Gazette, determine the minimum system
requirements for municipalities and municipal entities to enable implementation
of regulations 4 and 5.
(2) Each municipality and municipal entity must implement the minimum system
requirements by the date determined in the notice referred to in sub-regulation
1.
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The SCOA Regulation Chapter 4 (1)
CHAPTER 4 - TECHNICAL COMMITTEE FOR STANDARD CHART OF ACCOUNTS
Establishment of Technical Committee for Standard Chart of Accounts
8. A committee known as the Technical Committee for the Standard Chart of Accounts
is hereby established as a structure of the National Treasury.
Composition of SCOA Committee
9.(1) The SCOA Committee must consist of
(a) a chairperson;
(b) a deputy chairperson;
(c) five other members, each representing the functional areas of public finance,
intergovernmental relations, accounting, budget office and supply chain
management; and
(d) such further members as the Director-General considers necessary;
(2) The Director-General must designate employees of the National Treasury as
members of the SCOA Committee in the respective capacities for a term of three
years.
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CHAPTER 4 - TECHNICAL COMMITTEE FOR SCOA (Continue...)
Composition of SCOA Committee ((Continue...).)
(3) A member referred to in sub-regulation (1)(c) or (d) may nominate an alternate
to act in that members stead if unavailable.
(4) The deputy chairperson of the SCOA Committee must act in the place of the
chairperson of the Committee if unavailable.
(5) The Director General must take all reasonable steps to ensure that the SCOA
Committee is provided with the technical, administrative, financial and
logistical resources to enable it to fulfil its function and must determine its
procedures.
Functions of SCOA Committee
10. The SCOA Committee must
(a) oversee and administer the implementation of these Regulations;
(b) conduct pilot projects in different types of municipalities and municipal entities
in order to develop, test and improve the standard chart of accounts and
mechanisms for its implementation;
(c) develop guidelines for the implementation of these Regulations;
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CHAPTER 4 - TECHNICAL COMMITTEE FOR SCOA (Continue...)
Functions of SCOA Committee (Continue Section 10)
(d) develop and provide training courses for municipal financial officials and
conduct implementation workshops on the implementation of these Regulations;
(e) regularly assess the capacity of municipalities and municipal entities to
implement these Regulations and provide appropriate support and assistance;
(f) regularly request comments and recommendations from municipalities and
municipal entities on the implementation of these Regulations;
(g) review the implementation of the standard chart of accounts in government as
a whole to ensure the alignment of the SCOA provided for in these Regulations
and the SCOA applicable in national and provincial government;
(h) review the effectiveness of these Regulations and its alignment with other
relevant regulatory measures;
(i) undertake such other functions relating to the implementation of these
Regulations as the Minister may direct;
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CHAPTER 4 - TECHNICAL COMMITTEE FOR STANDARD CHART OF ACCOUNTS
Functions of SCOA Committee (Continue Section 10)
(j) make recommendations to the Director-General and the Minister on any matter
referred to in paragraphs (a) to (i); and
(k) undertake any functions necessarily ancillary to any matter referred to in
paragraphs (a) to (j).
Meetings of SCOA Committee
11. The chairperson of the SCOA Technical Committee or the Director-General may,
as required, convene meetings of the Committee, but the Committee must
convene at least once a year.
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CHAPTER 5 - RESPONSIBILITIES OF MUNICIPAL FUNCTIONARIES
Responsibilities of municipal councils and boards of directors

12. The municipal council of a municipalities and the board of directors of a municipal entity must
take the necessary steps to ensure that these Regulations are implemented by the
adoption of any resolutions, policies and budgetary provisions necessary for the
implementation of these Regulations.
Responsibilities of accounting officers

13. The accounting officer of a municipality or municipal entity must take all necessary steps to
ensure that these Regulations are implemented by at least:
(a) delegating the necessary powers and duties to the appropriate officials;
(b) ensuring that the responsible officials have the necessary capacity by providing for training
and ensuring that they attend training or workshops provided by the National Treasury;
(c) ensuring that the financial and business applications of the municipality or municipal
entity have the capacity to accommodate the implementation of these Regulations and
that the required modifications or upgrades are implemented; and
(d) submitting reports and recommendations to the municipal council or the board of directors,
as the case may be, that provide for the adoption of any resolutions, policies and budgetary
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provisions necessary for the implementation of these Regulations.
CHAPTER 6 - GENERAL
Access by National Treasury

14.(1) All municipalities and municipal entities must ensure that
(a) the business and financial applications used by them incorporate a portal allowing for free
access to their general ledgers for information purposes to any person authorised by the
Director-General ; and
(b) such access is provided.
(2) The accounting officer of a municipality and a municipal entity must ensure that its
system providers cooperate with the National Treasury to implement the necessary
programme amendments to provide the standard of access required by the National
Treasury.
(3) The National Treasury may use any of the information to which it has access in terms
of this regulation for the purposes of
(a) preparing national accounts for the whole of government;
(b) development of consolidated accounts for the local government sphere;
(c) verifying the correctness of municipal financial and business information;
(d) assessment of municipal financial performance and benchmarking; and
(e) fulfilling any obligations in terms of legislation.
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CHAPTER 6 - GENERAL
Postponement of implementation and exemption
15.(1) The Minister may, by notice in the Gazette on good cause shown by a
municipality or municipal entity and after considering any recommendations of
the SCOA Committee, exempt such municipality or municipal entity from the
application of a provision of these Regulations, for the period and on the
conditions determined in the notice.
(2) A postponement or exemption in terms of sub-regulation (1) may:
(a) apply to (i) municipalities generally; or (ii) municipal entities generally; or
(b) be limited in its application to a particular (i) municipality; (ii) category of
municipalities, which may be defined either in relation to a type or budgetary
size of municipality or in any other manner; (iii) municipal entity; or (iv) a
category of municipal entities , which may either in relation to a type or
budgetary size of municipal entity or in any other manner.
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CHAPTER 6 - GENERAL
Short title and commencement

16. These Regulations are called the Standard Chart of Accounts for Local
Government Regulations, 2013, and take effect on 1 July 2016.
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2.
Conceptualising SCOA
Outline:
Illustrating some basic transactions to conceptualise segments within a

transaction environment
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Understanding SCOA, the Tables and Project Summary
Standard list of all available accounts [GRID]
Indication on use, e.g. district, municipality or municipal entity
Definitions for the use of accounts
Posting level accounts defined
Reporting links provided in the tables
Project Summary explaining the segments in detail
Account numbers included for reference purposes
Character counts added to standardise long and short text
VAT Indicators driven by Function and Item

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Illustration
A. Internet Link
B. Excel Model
C. Presentation SNAP SHOT
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3.
SCOA Segments
Outline:
Item: Revenue
Item: Expenditure Item Segment
Item: Assets, Liabilities and Net Assets
Fund
Function
Project
Regional Indicator
Costing
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SCOA Segments
Standard
Classifica Function
tion
Reporting
Regional
Indicator Costing
Project Item
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Design Principles All Segments
1. SCOA Master select from grid
2. Municipal Entities and Agencies applicable
3. Internal Billings, Departmental Charges and Activity Based Recovers provides for primary
cost only
4. Legislative and Regulatory Requirements See Table in Project Summary
5. Linking transactions by Business Process to SCOA See illustration
6. Category links and programming rules see Table in Project Summary
7. SCOA Detail Accounts Labels and Accounts defined by group linked to reporting
8. SCOA Definitions Definitions to assist practitioners
9. AFS and BRF Alignment detail and by groups of accounts
10. Standards of GRAP Accounting framework
11. ERF Define categories for transfers
12. Secondary Costing Costing Segment & Primary Costing in Item Segment
13. Allocations In-kind GRAP 23
14. Transfers and Subsidies National DORA annual update
15. District Municipalities and Provincial Functional Classification
16. Transfers to All other Entities subjected to inputs from municipalities
17. Specific accounts relating to Municipal Entities
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Segment: Item
Revenue
Expenditure
Assets
Reporting
Liability
Net Assets
Item
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Segment: Item - Revenue
Reporting
Item
Outline:
Design Principles Specific to the Revenue Section of the

Item
Segment Snapshot
Segment Detail Discussion
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Item - Revenue: Design Principles
[See Section 7 of the Project Summary]
Reporting
1. Special Rating Areas

Item
2. Equitable Share
3. Allocations In-kind GRAP 23
4. Transfers and Subsidies National DORA annual update
5. Transfers and Subsidies Provincial Departments/District Municipalities functions
6. Transfers and Subsidies Departmental Agencies/Foreign Government and International
Organisation/Households/Non-profit Institutions/Private Enterprises, Public Corporations and
Universities and Technicons input from municipalities
7. Transfers and Subsidies added national revenue fund
8. Exchange versus Non-exchange Revenue
9. Agency Services
10. Interest, Dividends and Rent on Land
11. Operational Revenue
12. Rental of Property, Plant and Equipment
13. Sale of Goods and Rendering of Services
14. Service Charges
15. Fines, Penalties and Forfeits
16. Licences or Permits
17. Property Rates and Revenue Foregone
18. Gains and Losses
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Item: Revenue Segment Snapshot
Reporting
Item
Revenue
Exchange Revenue Non-exchange Revenue
Interest, Sales of
Fines,
Agency Dividend & Operational Rental of Goods and Service Licences or Property Transfers &
Penalties &
Services Rent on Revenue PPE Services Charges Permits Rates Subsidies
Forfeits
Land Rendered
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Item: Revenue Exchange Revenue: Agency
Services
Reporting
Item
Agency Service
District
Provincial National
Municipalities
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Item: Revenue Exchange Revenue:
Interest, Dividend and Rent on Land Reporting
Item
Interest Rent of Land
Prospecting,
Current and Deemed Mining and
Receivables Land
Non-current Interest Royalties
Affiliates, Related Bank Accounts Grazing Fees Royalties

Parties/Associated Surface Rental
Companies / Electricity /
Investment Undeveloped Land
Housing Short Term
Housing Land Sales / Investments and Call
Housing Selling Schemes Accounts
/ Merchandising, Jobbing
and Contracts / Property
Rates / Property Rental
Debtors / Service Charges
/ Sporting & Other Bodies
/ Staff / Waste
Management / Waste
Water Management /
Water
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Item: Revenue Exchange Revenue:
Administrative Fees Reporting
Item
Administrative Fees
Registration Request for Inspection Various:

Fees Information Fees
Administrative Handling
Accident Reports Fees
Inflammable Material Abattoir
Access to Information Bad Debts Recovered
Landing Fees Agricultural Activities Breakage Recovered
Act
Road and Transport Animal Housing Collection Charges
Duplicate IRP 5
Motor Vehicle Certificate Facilities Commission
Registration Statutory Services Discounts and Early
Municipal Information
Private Testing Station Settlements
and Statistics Quarantine Inspection
Road Ordinance Incidental Cash Surplus
NATIS, Plan Printing and
Road Worthy Certificate Duplicates Replacement of Security
Cards
Application
Taxi Association Fees
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Item: Revenue Exchange Revenue: Rental of
Property, Plant and Equipment
Reporting
Rental of Property, Plant and Equipment Item
Market Related Non-market Related
Straight-lined Straight-lined
Operating Operating
Contingent Contingent
Sublease Sublease
Payment Payment
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Item: Revenue Exchange Revenue: Sale of
Goods and Rendering of Services
Academic Services Immunisation Fees Reporting
Advertisements Laboratory Services Item
Cemetery and Burial Fees Legal Fees

Cleaning Fees Library Fees
Computer Services Management Fees
Escort Fees Membership Fees
Exempted Parking Objections and Appeals
Fire Services Parking Fees
Health Services Photocopies and Faxes
Housing (Boarding Services) Planning and Development
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Item: Revenue Exchange Revenue: Sale of
Goods and Rendering of Services (Continue)
Sale of Goods: Transport Fees
Agricultural Products Valuation Services
Promotions/Corporate
Gifts
Publications
Valuation Rolls
Voters Rolls
Scrap Waste and Other
Goods
Reporting
Streets/Street Markets
Item
Squatter Re-allocation
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Item: Revenue Exchange Revenue: Service
Charges
Reporting
Item
Waste
Electricity Management
Waste Water
Water
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Charges (Continue)
Electricity Reporting
Electricity Distribution Revenue for Services

Network Charges
Item
Ancillary Charges
Losses
Electricity Services Incidental to Electricity Sales
Appliance Maintenance
Connection/Reconnection
Change Circuit Breaker
Connections New:
Government Housing
Non-government Housing
Disconnection/Re-connection
Temporary Connection Fee
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Charges (Continue)
Electricity (Continue...). Reporting
Joint Pole Usage Item
Meter Compliance Testing

Meter Reading Fees
Notice Revenue
Temporary Service Plant
Sales:
Agricultural/Rural/Farm Dwellings Tariffs
Commercial Conventional (Single Phase)
Commercial Conventional (3-Phase)
Commercial Prepaid
Domestic Low (Home Light 1 20A / Home Light 1 60A / Home Light 2
20A / Home Light 2 60A)
54
Charges (Continue)
Domestic High: Item
Home Power 1
Home Power 2
Home Power 3
Home Power 4
Home Power Bulk
Industrial (400 Volts) (Low Voltage)
Industrial (11 000 Volts) (High Voltage)
Miscellaneous Service Revenue Affiliates and Inter Affiliates
Own Use/Interdepartmental Energy Sales
Revenue Adjustment
Special Negotiated Tariffs
55
Charges (Continue)
Sports Grounds/Churches/Holiday/Old-age Homes Item
Street Lighting
Water Pumps
Electricity Distribution Revenue for Services:
Network Charges
Ancillary Charges
Losses
Electricity Services Incidental to Energy Sales
56
Charges (Continue)
Waste Management Reporting
Item
Carrier Bags
Landfill Revenue
Refuse Bags
Refuse Removal
57
Charges (Continue)
Reporting
Waste Water
Item
Industrial Effluent
Treatment Effluent
Sanitation Charges
58
Charges (Continue)
Reporting
Water
Item
Connection/Reconnection
Meter Reading Fees
Sales:
Conventional
Prepaid
59
Item: Revenue Non-exchange: Fines,
Penalties and Forfeits
Reporting
Item
Building, Illegal Connections, Law

Enforcement, Overdue Books Fine,
Fines Pound Fees, Traffic, etc.
Fines,
Penalties and Penalties Collections, Disconnection Fees,
Forfeits Motor Vehicle Licence, etc.
Forfeits Deposits, Retentions, Unclaimed

Money
60
Item: Revenue Non-exchange: Licences and
Permits
Angling/Fishing Road and Transport Reporting
Boat Abnormal Loads

Item
Activities on Public Roads Fees

Dog
Drivers Licence Application Fees
Fauna and Flora
Drivers Licence Conversion
Filming Fees
Duplicate Drivers Licences
Game Flammable
Threatened and Protected Species Instructor Certificate
Health Certificates Learner Licence Application Fees

Learners Certificate
Hiking Trails
Licence Inspectors
Hoarding (Collection/Storing)
Licence Test Officers
Trading
Motor Vehicle
Operators 61
Item: Revenue Non-exchange: Property Rates
Business and Commercial Properties National Monument Properties
Communal Land Privately Owned Towns Serviced by
Business and Commercial the Owner
Farm Properties Protected Areas
Residential Public Benefit Organisations
Small Holdings Public Service Infrastructure
Farm Properties Residential Properties
Agricultural Purposes Developed
Business and Commercial Undeveloped
Industrial Purposes Restitution and Redistribution
Residential Properties Properties
Other purpose Communial Property Association Act
Formal and Informal Settlements Land and Assistance Act/Restitution of
Industrial Properties Land Rights Act
Reporting
Municipal Properties
Item
62
Item: Revenue Non-exchange: Property Rates
(Continue...)
Small Holdings Reporting
Agricultural Purposes
Business and Commercial Purposes Item
Industrial Purposes
Purposes other than the above (specify)
Residential Properties
Special Rating Areas
Name and Purpose
State-owned Properties
State Trust Land
63
Item: Revenue Non-exchange Revenue:
Transfers and Subsidies
Monetary
Capital
In-kind
Transfers and
Subsidies
Monetary
Operational
In-kind
Reporting
64
Item
Transfers and Subsidies (Continue...)
Reporting
DEPARTMENTAL AGENCIES AND ACCOUNTS
Item
DISTRICT MUNICIPALITIES
FOREIGN GOVERNMENT AND INTERNATIONAL ORGANISATIONS
HOUSEHOLDS
NATIONAL GOVERNMENT
NON-PROFIT INSTITUTIONS
PRIVATE ENTERPRISES
PROVINCIAL GOVERNMENT
PUBLIC CORPORATIONS
UNIVERSITIES AND TECHNICONS

65
Transfers and Subsidies (Continue...)
Entities included in Departmental Agencies,
Foreign Government and International
Reporting
Organisation, Non-profit Institutions, Private
Enterprises, Public Corporations and
Item
Universities and Technicons to be checked to
municipal information and comments given
Content of Households to be considered for

specific comments
Provincial Government based on function

classification with detail to be added by the
municipalities for comparison over time
District Municipalities same as for Provincial

Government
National Government Annual DORA
66
Segment: Item
Expenditure
Reporting
Item
Outline:
Design Principles Specific to the Expenditure Section of

the Item
Segment Snapshot
67
Item - Expenditure: Design Principles
[See Section 7 of the Project Summary] Reporting
Item
1. Bad Debts Written-off face of statement of financial performance not set-off against
provision
2. Bulk Purchases Electricity & Water
3. Contracted Services Agency and Support/Outsourced Services, Contractors and
Professional and Special Services
4. Depreciation and Amortisation High-level PPE categories
5. Employee Related Cost Senior Manager (by Designation) and Other Staff
6. Interest, Dividends and Rent of Land defined by ERF
7. Inventory Consumed Opening + Purchases - Closing
8. Remuneration of Councillors Remuneration of the Public Office Bearers Act
9. Operational Cost Any other items not specifically provided
10. Transfers and Subsidies GRAP 23
11. Cost of Free Basic Services Actual cost incurred for providing free basic services as
classified under revenue foregone. In principle this would require reducing expenditure
allocated specifically and charged cost of free basic services. See Contra-account in
Revenue
12. Revenue Cost of Free Basic Services This is the contra-account for revenue cost of
free basic services provided for in the Revenue component of the Item Segment
68
Item: Expenditure Segment Snap Shot
Reporting
BAD DEBT WRITTEN-OFF

Item
BULK PURCHASED
CORRECTIONAL SERVICES
DEPRECIATION AND AMORTISATION
EMPLOYEE RELATED COST
INTEREST, DIVIDENDS AND RENT ON LAND
INVENTORY CONSUMED
REMUNERATION OF COUNCILLORS
OPERATIONAL COST
TRANSFERS AND SUBSIDIES

69
Item: Expenditure Bad Debts Written-off
Reporting
Item
Less Material
Property
Electricity Services
Rates
Rendered
Waste Waste Water

Water
Management Management
70
Item: Expenditure Bulk Purchases
Water (Raw or Potable)

Water Losses
Reporting
Item
71
Item: Expenditure Bulk Purchases (Continue...)
ESCOM
Reporting
Independent Power Producers

Item
Green
Charges
Rights and Certificates
Renewable, Cogen, etc
Self Generation
Losses
Technical
Non-technical
72
Item: Expenditure Contracted Services
Reporting
Item
Agency and Consultants and

Support/Outsourced Professional Contractors
Services Services
73
Item: Expenditure Contracted Services:
Agency and Support/Outsourced Services
Reporting
Agency and Support/Outsourced

Services refers to services the Item
municipality should have the
capacity and expertise to carry out
certain services, but for some
reasons not utilising their own staff.
The reasons might include
temporary incapacity or the
outsourcing of services to save
costs, for example cleaning,
security and recruitment. In
evaluating the classification of
agency/outsourced services it
should be established whether the
services being procured could have
been provided by the municipality
itself. It could also be that the
municipality ordinarily has the
expertise to provide the service but
temporarily could not do so or to
save costs. 74
Item: Expenditure Contracted Services: Agency
and Support/Outsourced Services (Continue)
Administrative and Support Staff Post Mortem
Alien Vegetation Control Professional Staff
Animal Care Reconnection, Disconnection and
Burials Services New Connections for
Catering Services Electricity/Restricted Water Flow/Water
Call Centre Refuse Removal
Cleaning Services offices Researcher
Clearing and Grass Cutting Services Security Services
Fire Services Solid Waste
Hygiene Serives Swimming Supervision
Internal Auditors Translators and Interpreters
Illegal Dumping Veterinary Services
Litter Picking and Street Cleaning
Medical Waste Removal
Meter Management
Medical Services Reporting
Mini Dumping Sites

Organic and Building Refuse Item
75
Consultants and Professional Services
Reporting
Consulting services refer to specialist

services and skills provided that are required Item
for the achievement of a specific objective,

with the aim of providing expert and
professional advice on a time and material
basis. It is unnecessary to maintain these
skills in-house, since they are required on a
once-off or temporary basis. Therefore a
consultant is a professional person appointed
by the municipality to provide technical and
specialist advice or to assist with the design
and implementation of specific
projects/programs. The legal status of this
person can be an individual a partnership or a
corporation. The fact that a consultant is
defined as a professional person implies that
the consultant is professionally qualified. The
provision of advice or service is in line with a
contractual arrangement. Remuneration is
usually based on an hourly fee or a fixed fee
for a product/deliverable. This category
consists of groups for "business and advisory
services", "infrastructure and planning",
"laboratory" and "legal service". 76
Consultants and Professional Services (Continue)
Reporting
Item
77
Business and Advisory

Accountants and Auditors Research and Advisory
Air Pollution Qualification Verification
Audit Committee Quality Control
Board Member Valuer
Business and Financial Management
Commissions and Committees
Communications
Human Resources
Medical Examinations
Occupational Health and Safety
Organisational
Project Management Reporting
Item
78
Infrastructure and Planning
Architectural Geoinformatic Services
Agriculture Geologist
Ecological Land and Quantity Surveyors
Engineering: Landscape Designer
Aeronautical Town Planner
Agricultural
Chemical
Civil
Electrical
Industrial
Mechanical
Metallurgical
Mining
Structural Reporting
Geodetic, Control and Surveys

Item
79
Laboratory Services
Reporting
Agriculture Item
Medical
Roads
Water
80
Legal
Legal Advice and Litigation Reporting
Issue of Summons Item
Collection
81
Contractors
Reporting
Contractors are required to

provide services that are not the
Item
core business of the municipality.
It is normally not cost effective to
maintain these skills within the
department. Contractors include
costs associated with the use of
contracted individuals or
businesses on projects or tasks.
This does not include amounts
payable to contractors in respect
of provision of services such as
cleaning and security even if a
staff element can be identified.
Note also that it is common
practitioners that the said
contractor provides all the
materials required for the project
- he/she tenders for the whole
project, materials included.
82
Contractors (Continue)
Bottling and Packaging Management of Informal Transmission of Electricity by
Settlements Other
Building Contractors
Medical Services Transportation Contractor
Chipping
Mint of Decorations Sewerage Services
Distribution of Electricity by
Others Pest Control Sports and Recreation
Electrical Photographer Stage and Sound Crew
Employee Wellness Plants, Flowers and Other Upgrade and Additions
Decorations
Event Promoters
Prepaid Electricity Vendors
Fire Services
Preservation/ Restoration/
Graphic Designers
Dismantling/Cleaning Services
Grading of Sport Fields
Reconnection/Disconnection
Haulage and New Connections
Interior Decorator Relief Drivers
Reporting
Inspection Fees Refurbishment and

Maintenance of Building and Rehabilitation
Item
Facilities Rehabilitation of Landfill Sites

Maintenance of Equipment Removal of Structures/Signs
Maintenance of Unspecified Tracing Agents/Debt Collectors
Assets 83
Traffic and Street Lights
Item: Expenditure Depreciation and
Amortisation
Biological Furniture and
Computer
/Cultivated Buildings Office
Equipment
Assets Equipment
Heritage Infrastructure: Infrastructure: Infrastructure:

Assets Airports Cemeteries Electricity
Infrastructure:
Infrastructure: Infrastructure: Infrastructure:
Solid Waste
Roads Transportation Water
Disposal
Intangible Investment Machinery and Transport

Assets Properties Equipment Assets 84
Amortisation: Buildings (Continue) Reporting
Item
Other Excluding Distribution

and General Plant
Electricity Distribution (Owned,

Revalued and Leased)
Electricity General Plant

(Owned, Revalued and Leased)
85
Amortisation (Continue)
Reporting
Computer Equipment
Furniture and Office Equipment Item
Machinery and Equipment

Transport Assets
Other Excluding Electricity Distribution Electricity General Plant (Owned,

and General Plant Revalued and Leased)
86
Amortisation: Infrastructure Electricity (Continue)
Normally Primary Above
Electric Plant held for Future Use

132 kva / Below 132 kva
System Communication
Electricity
Plant Leased to Others

& Control
Storage Battery &
Equipment
Poles, Towers &
Fixtures
Overhead Conductors &
Devices
Underground Conduit
Underground
Conductors Devices
Conventional Meters
Automated/Prepaid
Meters
Other Installations on
Customer Premises Reporting
Street Lighting and

Signal System Item
87
Amortisation: Intangible Assets (Continue)
Reporting
Other excluding Distribution Item

and General Plant
Incorporation and Organisational Start-up

Franchises and Consents
Electricity Distribution Plant
Non-specified
Computer Software Application
Load Settlement Software Application
88
Item: Expenditure Employee Related Cost
Annual Remuneration, Performance Based Bonus, Travel, Motor
Vehicle, Accommodation, Subsistence Allowance, Service Related
Key
Management Bonus, etc
Salaries, Wages and Allowances, Performance Based Bonus,

Travel, Motor Vehicle, Accommodation, Subsistence Allowance,
Municipal
Staff Service Related Benefits
Group Life Insurance, Medical, Pensions Fund and UIF,

Social
Contributions:
etc
Key
Management
Bargaining Council, Group Life Insurance, Medical,

Social
Contributions: Pension Funds and UIF
Other
Municipal
Staff 89
Item: Expenditure Interest, Dividend and Rent
on Land
Interest Dividend Rent
Arrear Salaries Dividends Paid

Bank Overdraft Rent on Land
Borrowings
Finance Leases
Interest Costs
Non-current
Provisions
Overdue Accounts
Overpayments of
Interest due to
Queries Resolved
Rental Deposit
Reporting
Item
90
Item: Expenditure Inventory Consumed
Opening Closing Inventory

Purchases
Inventory Inventory Consumed
Consumable Stores
Standard Rated
Zero Rated
Finished Goods
Maintenance Materials
Other Goods held for Resale
Raw Materials
Spare Parts
Water Reporting
Work-in-Progress
Item
91
Item: Expenditure Remuneration of
Councillors
Remuneration of
Councillors
Pension Fund Medical Aid

Salary Allowance
Contributions Benefits
Officer-bearer,
Travel, Housing,
Cell Phone, Out of
Pocket Expenses Reporting
Item
92
Item: Expenditure Operational Cost
Achievements and Awards Cleaning Services
Advertising, Publicity and Marketing Laundry Services
Auctions Car Valet and Washing Services
Bursaries (Non-employees) Commission
Corporate and Municipal Activities Cellular Contract (Subscriptions and Calls)
Customer/Client Information Licences (Radio and Television)
Gifts and Promotional Items Postage/Stamps/Franking Machine
Municipal Newsletters Radio and TV Transmissions
Signs Rent Private Bag and Postal Box
Staff Recruitment Satellite Signals
Tenders SMS Bulk Message Service
Assets less than Capitalisation Threshold Telephone, Fax, Telegraph and Telex
Audit Cost: External Telemetric Systems
Bank Charges, Facility and Card Fees Telephone Installations
Current Accounts
Fleet and Other Credit/Debit Cards
Investments
Lease Payments
Long/Short Term Loans and Borrowings
Bargaining Council
Reporting
Item
93
(Continue...)
Contribution to Provisions:
Alien Vegetation External Computer Services
Decommission Cost Data Lines
Rehabilitation of Landfill Sites GPS Licence Fees
Copyrights Information Services
Licences and Permits Internet Charge
Dumping Fees Mainframe Time
Eskom Connection Fees Network Extension
Entertainment Specialised Computer Services
Mayor System Adviser
Councillors System Development
Senior Management Wireless Network
94
(Continue...)
Freight Services Event
Firearm Handling Fees National
Full Time Union Representative International
Honoraria (Voluntary Workers) System Access and Information Fees
Insurance Underwriting: Travel Agency Fees
Insurance Aggregation Office Decoration
Claims paid to Third Parties Operating Leases:
Insurance Brokers Fees Biological/Cultivated Assets
Insurance Claims Buildings
Excess Payments Computer Equipment
Risk Management Programs Furniture and Office Equipment
Premiums Heritage Assets
Land Alienation Costs Infrastructure [Airports, Cemeteries,
Learner and Internships Electricity, Roads, Solid Waste Disposal,
Levies WRC Transportation & Water]
Licences: Intangible Assets
Licence Agency Fees Investment Properties
Motor Vehicle Licence Registration Machinery and Equipment
Performing Arts Transport Assets
Reporting
95
Item
(Continue...)
Printing and Publications Road Worthy Test
Professional Bodies, Membership and Skills Development Fund Levy
Registration Search Fees
Property Payments: Servitudes and Land Surveys
Cleaning Services Signage
Deeds Storage of Files (Archiving)
Electricity Compliance Certificate Storage of Assets and Goods
Fire Protection Small Differences Tolerance
First Aid Taking Over Contractual Obligations
Fumigation Service Toll Gate Fees
Gardening Service Transport provided as part of Functions
Gas Events
Laundry Services Funerals
Management Dee Patients and Corps
Property Maintenance
Municipal Services
Pest Control
Safeguard and Security Reporting
Remuneration to Ward Committees

Resettlement Cost Item
96
Rewards Incentives
Item: Expenditure Operational Cost (Continue...)
Travel and Subsistence
Reporting
Domestic Foreign (see Next Slide)

Item
Transport without Operator Transport with Operator
A F
c D I
o
c a n Own Transport Provided
o Car Rental
o i c
d
m l i
m y d
& Public Transport
o e
d A n Own Transport
B
a l t
e
t l a Air Transport
v
i o l
e
o w
r
n a C
a
n o Railway Transport
g
c s
e
e t
s
Road Transport
Water Transport
97
Item: Expenditure Transfers and Subsidies
Departmental Agencies
and Accounts
Foreign Government
Allocations
In-kind and International
Capital Organisations
Monetary Households
Value
Transfers and Local Government
Subsidies
District Municipalities
Operational
Non-profit Institutions
Operational
Private Enterprises
Monetary
Value Public Corporations
Reporting
Universities and
Item
Technicons
98
Contra Accounts, Gains and
Losses and Surplus/Deficit
99
Contra Accounts
Reporting Electricity/Other
Energy
Item (50kw)/household
Water
(6kl/household)
Cost of Free
Basic Services
Rendered
Sanitation
Refuse
100
Contra Accounts
Revenue Cost of Free Basic Services
Property Municipal
Electricity Sanitation Solid Waste Water
Rates Housing
Bona Fide Farmers Rebate/Exemption
General Residential (R15000)
Indigent Owners
Pensioners/Social Grants
Reporting
Temporary Relief Rebates
Item
101
Gains and Losses
IMPAIRMENT LOSS/REVERSAL OF IMPAIRMENT LOSS PROPERTY, PLANT AND EQUIPMENT:
Biological/Cultivated Assets
Buildings
Computer Equipment
Furniture and Office Equipment
Heritage Assets
Infrastructure:
Airports
Cemeteries
Electricity Roads
Solid Waste Disposal
Transportation
Water
Intangible Assets
Investment Properties
Transport Assets
INVENTORIS REVERSAL OF WRITE-DOWN/WRITE DOWN TO NET REALISABLE VALUE (OR

CURRENT REPLACEMENT COST
Reporting
102
Item
Surplus/Deficit
Reporting
Deficit Attributable to Associate Item
Deficit Attributable to Joint Venture using Equity Method
Deficit Attributable to Minorities
103
Segment: Item Assets,
Liabilities and Net Assets
Reporting
Item
Outline:
Design Principles Specific to this Section of the Item

Segment
Segment Snapshot
104
Item: Assets, Liabilities and Net Assets- Current
Assets
Cash and Cash Equivalents
Reporting
Construction Contracts & Receivables

Item
Current Portion Non-current Receivables
Receivables from Non-exchange Transactions
Financial Assets not Separately Specified

Current Assets
Inventory
Agricultural Assets
Investments
Prepayments and Advance
Trade and Other Receivables from Exchange Transactions
105
Current Assets
Reporting
Item
Cash and Cash

Equivalents
Cash at Cash on
Bank Hand
Call
Bank Savings Deposits Cashier Cash in
Petty Cash
Accounts Accounts and Floats Transit
Investments
Demand and National

Payment of
Time Loans, Government
Interest/Divi
Bankers Investment
dend
Acceptance Securities
106
Assets (Continue)
Current Portion Receivables from Inventory

Non-current Non-exchange
Receivables Transactions
Car Insurance Agricultural

Computer and Claims Assets
Electronic
Equipment
Property Rates Consumable
Housing Selling Transfers and Stores
Schemes Subsidies Finished Goods
Housing Unauthorised Maintenance
Housing Land Expenditure Materials
Sales Other Goods
Sporting and Other held for Sale
Bodies
Raw Materials
Staff
Spare Parts
Water
Work-in-
Reporting
progress
Item
107
Assets (Continue)
Other Current
Financial Assets
Income Tax Inventory
receivable
Contractual Rights Agricultural
Derivative Assets
Financial
Instruments
Consumable
Unamortised
Stores
Discount Finished Goods
Maintenance
Materials
Other Goods
held for Sale
Raw Materials
Spare Parts
Water
Work-in-
progress
Reporting
Item
108
Current Assets (Continue)
Reporting
Item
Investments Non-current Prepayments and Vat Receivable

Assets held for Advance
Sale
Deposits Property, Plant Interest

and Equipment Prepayments
Call
Investment Rent
Investments Property Prepayments
Salary
Advances
Subsistence
and Travel
Advances
Taxes and
Levies other
then Income
Tax
109
Item: Assets, Liabilities and Net Assets Current
Assets: Trade and Other Receivables from Exchange Transactions
Reporting
Affiliate/Related Parties/Associated Item

Companies
Electricity
Merchandising, Jobbing and
Opening Balance
Contracts Monthly Billing
Property Rental Debtors Prior Period Corrections and Errors
Service Charges Collections
Waste Water Management
Debt Write-off
Waste Management
Closing Balance
Water Management
110
Non-current Assets
Non-current Assets
Non
Investment Current
Other
in Receiva- Property,
Defined Defined Invest- Non-
Biological Heritage Intangible Associate/ Invest- bles from Plant and
Benefit Tax ment current
Assets Assets Assets Joint ments Non- Equipment
Assets Assets Property Financial
Venture/ exchange
Assets
Subsidiary Transac-
tions
Reporting
Item
111
Item: Assets, Liabilities and Net Assets Non-
current Assets (Continue)
Biological Assets
Dairy Cattle
Feathered Animals
Opening Balance
Forests and Plantations
Acquisitions
Fruit Trees
Change in Accounting
Game Animals Policy/Correction of Error
Animals for Reproduction Fair Value Gains and Losses
Animals for Wool Sales/Disposals
Dogs / Horses Transfers Made/Received
Vines Closing Balance
Plants (Seed and Production)
Reporting
Item
112
Reporting
Item
Defined
Deferred
Benefit
Tax Assets
Assets
113
Heritage Assets
Archives
Areas of Land of Historic
Cost/Revaluation Specific Significance
Antiques and Collections
Cultural Significant Buildings
Municipal Jewellery
National Monuments
National Parks
Paintings
Accumulated Sculptures
Depreciation Works of Art
Reporting
Item
114
Cost
Revaluation Intangible Reporting
Assets
Accumulated
Item
Depreciation
Capital Development All Functions Electricity
Cost excluding Distribution and
Computer Software Electricity General Plant
Franchise and Consents
Incorporation and
Organisational Cost
Owned and In- Held for Future
Mastheads and
Publishing Titles use Use
Patents, Licences,
Copyrights, Brand
Names and Trademarks
Service Operating and Leased to
Finance Leased
Land Rights [Distribution Others
or General Plant
115
Investment in
Investment
Associate/Joint Investments
Property
Venture/Subsidiary
Bankers Acceptance
Housing Development
Certificate
Bank Deposits
Bank Repurchase
Agreements
Derivative Financial
Assets
Listed Corporate Bonds
Reporting and Stock Cost/Accumulated
Municipal Bonds Depreciation/Impairment
National Government
Item
Securities
Negotiable Certificates
116
Non-current Trade and Other Other Non-current

Receivables from Financial Assets
Receivables Exchange Transactions
Car Electricity
Computer and Property Rental Unamortised Debt
Electronic Debtors Expense
Equipment Waste Water Unamortised
Housing Selling Management Preference Share
Schemes Service Charges Expense
Housing Waste Management
Water
Housing Land
Sales
Sporting and Other
Bodies
Staff Reporting
Item
117
current Assets: PPE
Reporting
Property, Plant and Equipment Item
Owned Leased Construction

Work-in-progress
Cost Model PPE Categories (See

Categories) Agency and Support
Revaluation Model Services
PPE Categories (See Cost/Accumulated Consultants and Professional

Categories) Depreciation Services
PPE Categories (See

Categories)
Contractors
Cost/Accumulated
Depreciation
Employee Related Cost
Cost/Accumulated
Depreciation
Inventory Consumed
118
Operational Cost
Item: Assets, Liabilities and Net
Assets: PPE (Continue)
Reporting
Assets Non-current
PPE CategoriesAssets Item
Buildings
Transport Assets
Infrastructure:
Electricity
Water
Sanitation
Solid Waste Disposal
Transportation
Railways
Gas Supply System
Cemeteries
Roads, Pavement, Bridges
and Storm Water
Airports
Furniture and Office Equipment
Computer Equipment
119
currents Assets (Continue)
Reporting
Assets Non-current Assets Electricity Distribution Plant

Infrastructures:
Item
Poles, Towers and Fixtures

Automated/Prepaid Meters
Conventional Meters
Storage Battery Equipment
Transformer Station Equipment Normally Primarily above 132 kva
Transformer Station Equipment Normally Primarily below 132 kva
Underground Conduit
Underground Conductor Devices
System Communication and Control
Street Lighting and Signal System
Other Installations on Customer Premises
Experimental Electric Plan Unclassified
Owned and In-use Leased to Others and Future Use
120
current Assets: PPE (Continue)
Assets Non-current Assets
Owned and
In-use
All Functions
Electricity
Leased to
Computer Others
Equipment
Electricity
Future Use
Function
Reporting
Item
121
PPE Detail Classification for Owned Cost Model
Assets Non-current Assets
Acquisitions Disposal of Cost
Decommission, Impairment/Reversal
Restoration and of Impairment
Opening/ Similar Liabilities
Cost Closing
Balance Transfers' Received
Correction of Error Cost
Change in Transfers Made Cost

Accounting Policy
Classification
Depreciation for the

Period
Opening/
Accumulated
Closing
Depreciation
Balance
Accumulated Reporting
Depreciation on
Disposals/Transfers
Item
122
Liabilities
Current Liabilities Non-current Liabilities
Bank Overdraft
Consumer Deposit
Finance Lease Borrowings
Provisions Transfers and Subsidies
Transfers and Subsidies Other Financial Liabilities
Trade and Other Payables Provisions
VAT Payable Defined Benefit Plan Obligations
Borrowings
Financial Liabilities Reporting
Item
123
Current/Non-current Liabilities
Accrued Leave Reporting
Long Service Awards

Performance Bonus Item
Staff Parity
Insurance Claims
Impairment:
Insurance Claims
Property Rates
Transfers and Subsidies
Current and Non-
Unauthorised Expenditure
current Provisions
Impairment:
Electricity
Merchandising, Jobbing and Contracts
Service Charges
Waste Management
Waste Water Management
Water
124
Landfill Sites
Item: Assets, Liabilities and Net Assets Net
Assets
Reporting
Net Assets Item
Equity Funds Minority

and Interest
(Entities?) Reserves (Entities?)
125
Segment: Fund
Source? Funding
Reporting
Outline:
Design Principles Specific to the Fund Segment

Segment Snapshot
126
Funding
Fund: Design Principles

Reporting
1. Legislative Framework:
MFMA Section 18 and 19: funding of capital and operational spending
DORA: specific reporting requirements
2. Budget Reporting Format: supplement to budget funding mechanism
3. ERF: determine categories for transfers and subsidies
4. General: operational expenditure from operational revenue AND capital
expenditure from capital revenue sources
5. LGPRA: accounting - special rating areas
6. Equitable Share: cost vs. value of funding
7. Internal Service Charges: reporting information
8. Allocation in-kind: GRAP 23 principles re goods and services in-kind
9. Transfers and Subsidies: annual review of content and update
10. District Municipalities: functional classification
11. Other Transfers and Subsidies: limited information
127
Fund: Segment Outline
Funding
Reporting
General Capital
Abattoirs, City
Equitable Share Parks, Reserves, Allocations In-kind Annuity Loans, Bankers
Special Rating Gardens, Fresh Monetary Allocations Acceptance Certificate,
Finance Leases, Local
Areas Produce Markets, Operational Registered Stock,
Urban Transport, Allocations In-kind Marketable Bonds, Non-
Property Agencies, Monetary Allocations annuity Loans, Non-
marketable Bonds, PPP
Tourism, Zoos and Liabilities, Securities, etc.
Museums, etc?
Revenue Transfers &
Subsidies
Commercial
Borrowing:
Non-current
Annuity Loans, Bankers

Not accumulated NT Currently piloting
Acceptance Certificate,
management accounting GRAP posting level
Finance Leases, Local surplus as per AFS
framework (such as such as deemed
Registered Stock, (book entry; actual
departmental charges, interest,
Marketable Bonds, Non- cash and cash
annuity Loans, Non- distribution accounting depreciation, bad
equivalents on hand etc) Outcome will
marketable Bonds, PPP debt write off etc.
of which purpose is inform SCOA
Liabilities, Securities, etc.
the funding of cash
backed reserves
Costing Non-funding
Cash Backed Transactions
Borrowing:
Current Reserves 128
Segment: Function
Purpose?
Standard
Vote? Classification Function
Reporting
Outline:

Segment Snapshot
129
Function: Design Principles Standard
Classificati
on
Function
Reporting
1. Legislative Framework: Budget Reporting Regulations and MFMA

Circular 12
2. General: Add detail as required
3. Municipal Entities and Agencies: Follow principles
4. NERSA: Specific detail added to extract NERSA Regulatory Reporting
Requirements
5. Core versus Non-core Function: Core refers to the matters ito
section 156(1) of the Constitution and Part B of Schedules 4 and 5.
Non-core refers to section 156(4) of the Constitution constitutionally
assigned to local government
130
Function: Segment Outline
Standard
Classificati Function
on
Reporting
Municipal
Community Economic and
Governance Trading
and Public Environmental Other
and Service
Service Service
Administration
Non- Non- Non- Non- Non-

Core Core Core Core Core
core core core core core
131
Aged Care, Home Assistance and / Transport Facilities / Cemeteries and
Crematoriums / Child Care Facilities / Community Halls and Facilities / Libraries and
Archives / Museums and Art Galleries / Animal Care / Literacy Programmes /
Community Theatres and Zoos
and Social
Services
Agricultural / Animal Controls and Diseases / Archives / Cultural Matters / Consumer
Protection / Disaster Management / Education / Indigenous and Customary Law
Ambulance / Clinics / Health Inspections

Health
Ambulance / Health Services
Communi Core
ty and Housing
Public Non-core
Service
Civil Defence / Fire Fighting and Protection / Control of Public Nuisance / Cleaning
/ Disaster Management / Fencing and Fences / Licensing and Control of Animals /
Public Safety Police Forces, Traffic and Street Parking Control
Non-core
Beaches and Jetties, Bill Boards and Amusement /

Camping Sites / Community Parks / Lakes, Dams and
Sport and Stadiums / Swimming Pools
Recreation
Standard
Casinos. Racing, Gambling and Amenities / Provincial Classificati
on
Function
Recreation and Amenities / Provincial Sport

Reporting
132
Standard
Classificatio Function
n
Reporting
Biodiversity and
Indigenous Forests / Nature
Environmental Landscape / Coastal
Conservation / Pollution
Protection Protection / Pollution
Control / Soil Conservation
Control
Corporate Wide
Strategic Planning /
Economic
Development Liquor Licensing / Provincial
Economic and Planning and Planning / Licensing Planning / Regional Planning
Environmental Development and Regulations / and Development / Urban
Service Town Planning, and Rural Development
Building Regulations
and Enforcement
(City Engineer
Provincial Roads and

Traffic / Public
Parking Garages /
Transport / Road
Road Transport Public Buses / Roads /
Traffic Regulation /
Pounds / Taxi Ranks
Vehicle Licensing and
Testing
133
Function: Segment Outline Standard
Classificati
on
Function
Reporting
Municipal
Governance and
Administration
Budget and Corporate Executive and

Treasury Office Services Council
Human Resources
Budget Officer Information Technology Mayor and Council
Chief Financial Officer Property Services Municipal Manager
Creditors Asset Management
Property Rates Fleet Management
Revenue Management Internal Audit Services
Treasury and Cash Management Legal Services
Marketing, Publicity and Media
Coordination
Public Works
Risk Management
Security Services
Supply Chain Management
Trading Regulations
134
Standard
n
Reporting
Trading Service
Waste Waste Water Water

Electricity
Management Management
Sewerage/Storm
Recycling/Disposa Distribution
Water
Core: Distribution l /Removal/Street
Management/ Storage
Cleaning
Public Toilets
Non-core: Non-core
Non-core: Non-core
Generation
135
Standard
n
Reporting
Other
Air
Abattoirs Forestry Markets Tourism
Transport
Core Core Core Core Core

Non-core Non-core Non-core Non-core Non-core
136
Segment: Project
Operational or Capital Spending?

Reporting
Outline:

Segment Snapshot Project
137
Project: Design Principles Reporting
Project
1. IDP: Provide for projects as determined by problems and challenges with

defined strategies!
2. IRM: Specific requirements provided for reporting
3. Terminology: Standardisation specific to upgrade and additions and
rehabilitation and refurbishment
4. SCOA: Provide for detail to be added
Comment
?
5. Naming Convention: Specific project to determine.
6. Classification: PPE categories added
7. NERSA: Detail added to extract Regulatory Reporting Requirements
8. Accrual Accounting Principles: Prospective balance until completed if capital
and operation projects annual total
9. Legislative Framework: MFMA Section 19 Approval of Capital Projects
10. Repairs and Maintenance versus Operating Expenditure: Classifications
added!
138
Project: Segment Outline
Reporting
Projects
Project
Capital Operational
Infrastructure Non- Default

infrastructure Transactions
Maintenance
Existing Own
and Repair
Operating
New Transfers
Expenses
Typical Work
Transfers 139
Streams
Project: Capital - Infrastructure
Reporting
Project
Rehabilitation
and PPE Categories Project (Add)
Refurbishment
Existing
Upgrade and
PPE Categories Project (Add)
Additions
Infrastructure New PPE Categories Project (Add)
Rehabilitation
Refurbishment
Transfers
Upgrade and
Additions
140
Project: Capital Non-infrastructure
(Continue) Reporting
Project
Rehabilitation
Refurbishment
Own
Upgrade and
Additions
Non-
infrastructure
Rehabilitation
Refurbishment
Transfers
Upgrade and
Additions
141
Project: Operational
Reporting
Project
PPE Categories
Default Transactions Infrastructure
Infrastructure Transfers PPE Categories

Maintenance and Repair
Non-infrastructure PPE Categories
Operational Non-infrastructure
PPE Categories
Transfers
Infrastructure PPE Categories
Infrastructure Transfers PPE Categories

Operating Expenses

Transfers
Typical Work Streams
142
Project: Operational (Continue)
Reporting
Typical Work Streams

Agricultural Project
AIDS/HIV, Tuberculoses and Cancer Elections

Asset Protection Emergency and Disaster
Capacity Building, Training and Management
Development Environmental
City Cleanliness and Clean-up Expanded Public works Programme
Projects Functions and Events
Communication and Public GIAMA Implementation
Participation Health and Wellness
Community Development Human Resources and Capital
Dam Safety Indigent Management
District Initiatives and Assistance to Junior Council
Municipalities
Drinking Water Quality
Efficient and Effective Public Service 143
Project: Operational (Continue)
Reporting
Typical Work Streams (Continue)

Local Economic Development Project
Meter Conversion and/or Sport Development

Replacement Strategic Management and
Music, Arts and Culture Governance
Occupational Health and Safety Thefts and Losses through Criminal
Performance Management Conduct
Property Rates Act Implementation Tourism
Protecting the Poor Ward Committees
Public Protection and Security Website Development and
Research and Development Maintenance
Service Connections
Shared Services Centre Cost
Spatial Planning
Special Projects 144
Segment: Regional Indicator
Reporting
Beneficiary?
Regional
Indicator
Outline:

Segment Snapshot
145
Regional Indicator: Design Principles
Reporti
ng
Regional
Indicator
Information?
1. ERF: principles determined for national/provincial departments

2. SCOA Posting Levels:
provide for indicators for administration of the municipality
district municipalities and local municipalities
Information?
3. Ward: classification depend on municipal service delivery model

4. SCOA: detail to be populated as required by ALL municipalities
5. Municipal Entities and Agency: equally applicable
6. Information: geographical service delivery vs. revenue collection
with future expansion possibilities
146
Regional Indicator: Segment Outline
Reportin
g
Regional
Indicator
Regional
Indicator
Metro / No
National Provincial District
Regional
Functions Functions Munic. Munic.
Indicator
Admin/ Admin/
Whole of Local Whole of
Areas Head Head
the Munic. Munic. the District
Office Office
Admin/
Whole of
Satellite Ward Ward
the Area
Office
147
Segment: Costing Indicator
Beneficiary?
Reporting
Costing
Outline:
148
Introduction
The introduction of financial modeling targets all costing activities with

particular focus on tariff determination.
Financial modeling is fundamental to improving the quality of municipal

MTREF submissions and thereby positively influencing financial
sustainability and service delivery
Currently most municipalities utilise job costing as a methodology of
tracking their costs.
This fits the needs of the engineering services predominantly, and does
not act as a decision support tool as it only tracks costs as they are
incurred, and does not inform the budget process, resulting in tariffs not
being cost reflective.
These secondary/ indirect costs can be between 10-15% for metros and
between 18 25 % for smaller municipalities.
149
Tariff determination
Tariff modelling that ensures cost recovery requires a structured process

whereby cost accounting (management accounting) is applied; this will
enable municipalities to determine the real cost of municipal services
provided and in turn the financial burden or affordability to households
can be factored into the process.
Effective costing of municipal services will also provide a more accurate

indicator of what municipalities are spending in terms of providing free
basic services to disadvantaged communities.
Effective costing of municipal services will ensure a consistent approach

to tariff determination processes across municipalities.
150
Segment: Costing
At the highest level the costing structure

distinguishes between:
Departmental charges (Support services)

Internal billings
Activity based recoveries
151
Segment: Costing
Department Charges (Support Services)

Finance [Accounting / Asset Management / Audit Fees /
Budgets / Expenditure / Insurance Fees / Meter Readers /
Payroll / Procurement / Revenue Management
Corporate Services [Training and Development /
Employee Benefits / Resource and Planning / Labour
Relations / Human Resource Recruitment / Legal Serive /
Postal Services / Office Rentals / Telephone / Telephone
Maintenance
Cleaning Services
Security [Services / System Maintenance
152
Segment: Costing
Department Charges (Support Services) Continue

Communication [IT System Ware / IT Data Ware / Data
Lines / Radio Maintenance]
Other [Municipal Manager / Internal Laboratory Fees /
Project Management]
153
Segment: Costing
Internal Billing (Consumption and Service Charges)

Connection Fees / Electricity Consumption / Electricity
Pump Stations Water Services / Electricity Streetlights
/Electricity Traffic Lights / Rates Charges / Refuse
Removal / Sanitation Charges / Water Consumption
154
Segment: Costing
Activity Based Recoveries

Transport Costs, e.g. Light p/km, Medium p/km, Heavy p/km
Plant and Equipment, e.g. Articulated p/h, Backactor p/h
Quarries, e.g. Concrete mix per ton, Aggregate per ton
Labour, e.g. Worker, Henchman, Operator
Printing Service, e.g. Black and White, Colour
155
Conclusion
Costs, cost management and a costing methodology should not be informed by a

specific approach i.e. ABC, absorption costing etc., but should rather be a hybrid
solution aimed at the specific requirement of LG in a South African context.
The time, effort and cost should always be justified by the outcome.
156
4.
Practical Example
Outline:
Typical examples to apply within the SCOA Classification Framework
157
Practical Examples
Illustration: Using Workbook with Information and

Workgroups
A. Internet Link
B. Excel Model
C. Presentation SNAP SHOT
Discussion of Selections
158
5.
SCOA Implementation
Outline:
Activities Preparing for Implementation

Comment Process informing Version 5 and final SCOA Regulation
159
SCOA Roadmap - Timelines
Budget Cycle: 2016/17
Two year window period

Implementation
Post
January 2014
Regulation Change management
Piloting & lessons learned SCOA Business process links
Change Management & Training System Enhancements &
Regulation Preparation & readiness for full Updates
SCOA Tables Implementation (Munics) Monitoring, Evaluation and
BRF Revised SCOA Business process links Oversight
3 September 2013 AFS Template System readiness & Refinements Identify shortcomings
Updated PSD Upgrade of Local Government Support and Assistance
SQL Database Data Base Maintenance of SCOA
Publication System Specification SCOA Website Training
Draft Regulations & Tables
Consultation SCOA Technical Committee
Project Summary Document &Standard Terminology
Minimum Business Process Requirements 160
Evaluation of Financial Systems
SCOA Publication - Consultation Framework
Informing SCOA Version 5 and final Regulations
26 September 2013 Provincial treasuries, interested national

departments and TCF Working Committee (This committee is also
welcome)
3 October 2013 Consultants, advisors, and professional bodies
4 October 2013 System Vendors
7 October 2013 Metropolitan municipalities
8 October to 5 November 2013 District wide engagements including
all local municipalities (44 engagements)
6 to 13 November 2013 Follow up engagements with the respective
system vendors (one on one sessions with the vendors and respective
identified pilot municipalities
2 December 2013 Conclusion of 90 day comments period
4 to 31 December 2013 Consideration of comments
JANUARY 2014 PROMULGATION OF SCOA REGULATIONS
1 July 2016 (2016/17) Implementation date by all municipalities
161
Preparation for Piloting: Work in Progress
SCOA Business Process Link
To indicate typical transactions (by business process) and how these transactions need to be standards
for classification in the segments
Develop System Specification

SCOA Business Process Link and SQL Database to be used to develop a system specification for the
System Implementation
Vendor Evaluation
Develop evaluation model to evaluate vendors in meeting minimum system requirements and the
specification for SCOA Implementation
Pilot Site Assistance to Municipality and Developer

14 potential pilot sites all vendors covered with at least official pilot site including mapping of
accounts to SCOA. Piloting dependent on specification evaluation
Assistance to Developers in the implementation of SCOA and linking to Business Processes and
Modules
Update/Revision to SCOA
162
Identified Potential Pilots
LIST OF POTENTIAL PILOT SITES

Municipality Province Type Vendor System
City of Cape Town Western Cape Metro SAP Own solution
Drakenstein Western Cape B1 BCX Solar
Ekurhuleni Gauteng Metro BCX Venus
Nkangala DM Mpumalanga C1 CICS Munsoft
Kareeberg Northern Cape B3 None Manual/Excel
Kgetlengrivier North West B3 Vesta Phoenix
Khara Hais Northern Cape B2 Quill BIQ
Knysna Western Cape B2 R Data Promun
uMgungundlovu DM Kwazulu Natal C2 Pastel Pastel Evolution
Overstrand Western Cape B2 Bytes SAMRAS
uMhlathuze Kwazulu Natal B1 Fijutsu Promis
Victor Khanyene Mpumalanga B3 Sebata Sebata FMS
Umvoti Kwazulu Natal B3 Umfuzela Dolphin
Richmond Kwazulu Natal B4 Fijutsu Abacus
163
Comment Process What do we require?
Submit comments on the Regulations and Tables per email, internet link, post or
hand delivery
Sufficient detail, definitions and explanations need to be provided for adding
accounts
Do a comparison to the chart of accounts currently used by the municipality and
ensure that accounts are available for all existing postings
Provide inputs on matters requiring clarification not sufficiently addressed in the
existing project documents - suggestions/inputs to clarify/refine the definitions
Comments required by 2 December 2013 on the prescribed formats
DO NOT HESITATE TO FORWARD EMAILS TO CLARIFY MATTERS IF THE
MUNICIPALITY ENGAGED IN A COMPARISON EXERCISE
164
Conclusion
Questions & Answers
165

SCOA Formal Consultation

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DRAFT MUNICIPAL REGULATION ON A

STANDARD CHART OF ACCOUNTS (SCOA)

2. Conceptualising Illustrating some basic transactions to conceptualise segments within a

Understanding the classification framework and segment detail for Item,

4. Practical Typical examples to apply within the SCOA Classification Framework

5. SCOA Activities preparing for implementation

The Local Government budget and financial management reform agenda

Support and advise municipalities on budget issues

Ensure compliance and

We have developed a budgeting system for local government including

Consolidated MTREF budget information for all

278 different municipal charts of accounts (COA) - aggregation of

Next logical step develop and implement a SCOA for

Improve credibility and reliability of financial data

General business processes and applications

NB: an area requiring urgent attention if sustainable service

Standard Chart of Accounts (SCOA)

1. Constitution and MFMA

Departmental SCOA confirmed importance of stakeholder involvement

SCOA VERSION 2 - STAKEHOLDER INVOLVEMENT

Phase VERSION 4 - PRE-SCOA REGULATION

3 Add "posting levels" and "account numbers"

Section 215(1) of the Constitution states that: national , provincial and

Legal Framework (Continue...)

Extensively tested with sample data from municipalities

CHAPTER 2: SCOA FOR MUNICIPALITIES AND MUNICIPAL ENTITIES

CHAPTER 3: MINUMUM BUSINESS PROCESS AND SYSTEM REQUIREMENTS

CHAPTER 5: IMPLEMENTATION OF STANDARD CHART OF ACCOUNTS

(2) The financial and business applications or systems used by a municipality or

Minimum system requirements

Functions of SCOA Committee (Continue Section 10)

Meetings of SCOA Committee

Responsibilities of municipal councils and boards of directors

Responsibilities of accounting officers

Access by National Treasury

Postponement of implementation and exemption

Short title and commencement

Illustrating some basic transactions to conceptualise segments within a

Understanding SCOA, the Tables and Project Summary

Standard list of all available accounts [GRID]

Indication on use, e.g. district, municipality or municipal entity

Definitions for the use of accounts

Posting level accounts defined

Reporting links provided in the tables

Project Summary explaining the segments in detail

Account numbers included for reference purposes

Character counts added to standardise long and short text

VAT Indicators driven by Function and Item

Design Principles Specific to the Revenue Section of the

1. Special Rating Areas

Exchange Revenue Non-exchange Revenue

Interest Rent of Land

Affiliates, Related Bank Accounts Grazing Fees Royalties

Registration Request for Inspection Various:

Rental of Property, Plant and Equipment Item

Market Related Non-market Related

Advertisements Laboratory Services Item

Cemetery and Burial Fees Legal Fees

Electricity Distribution Revenue for Services

Joint Pole Usage Item

Meter Compliance Testing

Domestic High: Item

Sports Grounds/Churches/Holiday/Old-age Homes Item

Building, Illegal Connections, Law