1. SCOA Roadshows - National and Provinces

Report
SCOA V4 RE-IMPLEMENTATION
INTRODUCTION
NATIONAL AND
PROVINCIAL ROADSHOWS
Presenter: SCOA Technical Committee |
National Treasury | February - March 2013
Overview
• Objectives set out by the SCOA Technical Committee
(i.e. why the change);
• How these objectives were achieved;
• Development timeline;
• Summary of the segments;
2
Why the change?
There were a number of user needs that had to be addressed:
1
– improving the accuracy of allocations across the SCOA segments
thereby eliminating the inconsistent economic classification of
transactions;
2
– eliminating the duplication of projects in the project segment;
3
– improving system processing times;
4
– rationalising the Item segment;
3
How are these objectives achieved?
1
Improving the accuracy of allocations across the SCOA segments thereby
eliminating the inconsistent economic classification of transactions:
– creation of category links in BAS (i.e. filtering of account views);
– limiting the availability of accounts in BAS to specific departments;
• To build the category links all break down allowed accounts had to be
removed;
4
How are these objectives achieved (cont.)?
2
Eliminating the duplication of projects in the project segment :
– allow flexibility in creation of projects especially where one project has
a number of sub-projects cutting across different economic
classifications;
• To do this
– all lower levels (e.g. infrastructure & non-infrastructure) had to be
removed;
– an eighth segment was created to carry the detail on infrastructure
and the economic classification indicator  Infrastructure Segment;
5
How are these objectives achieved (cont.)?
3
Improving system processing times :
– deletion of inactive entities (suppliers) and user IDs;
– implementation of new databases for departments;
– updating of departmental parameters and registers;
– cleanup of old debt/suspense accounts;
• To do this requires BAS reimplementation;
6
How are these objectives achieved (cont.)?
4
Rationalising the item list:
– deletion of unused items (including leger items);
– regrouping of similar items;
– renaming of items;
– aligning to changes in accounting policy and reporting requirements
(e.g. finance leases and inventory);
– creation of items requested by sector departments
(e.g. R&D items, grouping of health facilities, DOD assets);
7
Development timeline
• Research and design of proposals by the SCOA Technical Committee
(until end July 2012);
• SCOA Workshop with key stakeholders hosted by NT to discuss
proposals in August 2012;
• Presented inventory / consumable proposals at Asset Management
Workshop hosted by NT in September 2012;
• Final draft SCOA presented at BAS user forum in November 2012;
• Awareness sessions with National and Provincial Departments in
February 2013;
• Go live  1 April 2013;
8
Development timeline
• Research and design of proposals by the SCOA Technical Committee
(until end July 2012);
• SCOA Workshop with key stakeholders hosted by NT to discuss
proposals in August 2012;
• Presented inventory / consumable proposals at Asset Management
Workshop hosted by NT in September 2012;
• Final draft SCOA presented at BAS user forum in November 2012;
• Awareness sessions with National and Provincial Departments in
February 2013;
• Go live  1 April 2013;
9
Development timeline (Cont.)
• Available documentation
– Project summary report with supporting annexures;
– SCOA in excel with item definitions, illustration of category links, and
limitations placed on accounts (i.e. departmental access);
– Updated classification circulars – inventory & consumables, leases;
– Worked examples;
10
Standard Chart of Accounts
Infrastructure segment
• The purpose of infrastructure segment is to identify whether or not a spending item relates to
infrastructure and to show the type of infrastructure it relates to.
Item segment
• The purpose of this segment is to record receipt and payment transactions as well as transactions in
assets and liabilities.
Asset segment
• The purpose of this segment is to identify asset classes to which a transaction is allocated when the
purpose relates to an asset or the use of an asset.
Project segment
• The purpose of this segment is to identify whether or not a payment is part of a project.
Fund segment
• The purpose of this segment is to identify the source of funding from which payments are effected, and
the nature of receipts.
Objective segment
• The purpose of this segment is to identify the programme/activity against which any given transaction
should be recorded. The segment reflects a department’s programme and sub-programme structure in
as much detail as is required both for reporting and management purposes.
Responsibility segment
Regional Identifier segment
• The purpose of this segment is to identify the cost centre of any given transaction. As the location of
cost centres varies across departments, depending on their organisational structure, this segment is not
standardised and the departments maintains the segment.
• The purpose of this segment is to identify which region benefits from government spending.
11
Order of capturing
The economic
classification
12
Questions?
13
SCOA V4 RE-IMPLEMENTATION
NATIONAL AND
PROVINCIAL INFORMATION SESSIONS
Presenter: SCOA Technical Committee |
National Treasury | February - March 2013
Segment Discussion
Highlights of the changes to
the different segments
15
NEW INFRASTRUCTURE
SEGMENT
16
Infrastructure Segment
• Main segment for identifying the economic classification
• Centrally controlled and standardised for all departments and aligned to
the economic classification
• Improved recording of Own Account and Outsourced transactions – one
to one link
• New category for lease transactions
• Category links into the system now centrally controlled
“Refer to Annexure C for detailed structure”
17
Infrastructure segment…
• Distinguish between expenditure vs. non-expenditure
• Expenditure is divided into Infrastructure and Non-Infrastructure
– Infrastructure
• Economic classification same as the old “Projects Infrastructure”:
 Existing Infrastructure;
Maintenance and repairs (Current)
Upgrades and Additions (Capital)
Refurbishment and Rehabilitation (Capital)
 New Infrastructure (Capital)
 Infrastructure Transfer (Current/Capital)
• Introduced Payments for financial assets for Concessional loans
relating to Infrastructure
• Created a Lease category for Finance or Operating leases
“Refer to Annexure C for detailed structure”
18
Infrastructure segment…
– Non-Infrastructure
• Includes expenditure categories previously under “Projects noninfrastructure and Stand-alone”
Non-Infrastructure current
Non-infrastructure / stand-alone current
Maintenance and repairs current
Non-infrastructure capital
Non-Infrastructure / stand-alone capital
Non-Infra: Upgrades and Additions
Non-Infra: Refurbishment and Rehabilitation
Non-Infra: Transfers
Non-Infra: Payments for Financial Assets
Non-Infra: Internal Charges
Non-Infra: Cara Expenditure
Non-Infra: Leases
19
Infrastructure segment
• Non Expenditure
This category is to be used for non expenditure transactions
 General Account
 Receipts
 Assets and Liabilities
NB. Changed the term Revenue to Receipts
20
Category links in the system
• Built using the Infrastructure an the Item segment in the system
The purpose of the infrastructure category type is to provide the link between the posting
level items in the Infrastructure segment and those in the Item segment of the chart. The
infrastructure category type in the financial system ensures that the correct items in the
Item segment is linked to the correct posting level projects in the Infrastructure segment,
so ensuring correct classification and the elimination of inconsistencies. This link is pre-set
in the systems environment, and when a infrastructure category type is identified a set of
posting level items are provided in the Item segment that is linked to such category.
“Refer to Annexure D for detailed structure”
21
Old category links
22
ITEM
SEGMENT
23
Item segment
• Compensation of Employees:
New item to be created to under salaries & wages for learnership/internship
• Goods and Services
The changes range from the shifting of items between non-posting levels, the removal of
unused items, the renaming or redefining of items to the creation of additional items.
“Refer to Annexure B for detailed structure”
24
Item segment…
• Prefix OWN to replace PRJ for own account transactions
Outsourced
A project is “outsourced” when the department appoints a third party to execute the activity
in its entirety; then the total value of the amount payable to that outside contractor must be
recorded as Outsourced.
Own Account
A project is accounted for as “Own account’ when the Department purchases all the
necessary inputs and uses its own resources (e.g. staff and equipment) to plan,
implement, and execute the activity. Inputs into the project may include the appointment of
professional services such as engineers, architects, project managers, etc. as well as
smaller portions of the project that is outsourced, for example the construction of a
laboratory outsourced to a private company forming part of a bigger school building project
being implemented by the department from own account.
25
Item segment…
• Audit Costs
The item AUDIT COST EXT: REGULARITY has been added at level 5 under the item
AUDIT COST: EXTERNAL. This item has been created to monitor the total cost related to
regulatory audits.
Old
Segment
Detail No
Old Item Lowest Level
AUDIT COST:EXTERNAL
AUDIT FEES:EXT CURRENT YEAR
AUDIT FEES:EXT CURRENT YEAR
PRJ AUDIT FEES:EXT CURRENT YEAR
AUDIT FEES:EXT DISBURSEMENTS
AUDIT FEES:EXT DISBURSEMENTS
PRJ AUDIT FEES:EXT DISBURSEMENTS
AUDIT FEES:EXT PREVIOUS YEAR
AUDIT FEES:EXT PREVIOUS YEAR
PRJ AUDIT FEES:EXT PREVIOUS YEAR
3340
3533
4456
4457
3534
4458
4459
3535
4460
4461
New
Segment
Detail No
New Item Lowest Level
AUDIT COST:EXTERNAL
AUDIT COST EXT:REGULARITY
AUDIT FEES:EXT CURRENT YEAR
AUDIT FEES:EXT CURRENT YEAR
OWN:AUDIT FEES:EXT CURRENT YEAR
AUDIT FEES:EXT DISBURSEMENTS
AUDIT FEES:EXT DISBURSEMENTS
OWN:AUDIT FEES:EXT DISBURSEMENTS
AUDIT FEES:EXT PREVIOUS YEAR
AUDIT FEES:EXT PREVIOUS YEAR
OWN:AUDIT FEES:EXT PREVIOUS YEAR
344
1084
2702
3620
3621
2703
3622
3623
2704
3624
3625
26
Goods and Services
• External Computer Services
The item EXT COMP SER: SYSTEM DEVELOP was exclusively for National Treasury for
payments related to systems development and is now open for use by all departments.
• Consultant and professional service
New items were added for science and technologies activities expenditure.
New items were added for outsourced maintenance and repairs to be restricted to
departments undertaking infrastructure project (i.e. DPW, Health, Transport).
27
Item segment…
CONS/PROF:BUSINESS&ADVISORY SERV
C/P:BUS&ADV SER:FIN MANAGEMENT
OUTS:C/P:BUS&ADV SER:FIN M ANGM NT
C/P:BUS&ADV SER:PRJ MANAGEMENT
OUTS:C/P:BUS&ADV SER:PRJ M ANGM NT
C/P:BUS&ADV SER:RESEARCH&ADVISOR
OUTS:C/P:BUS&ADV SER:RESE&ADVISR
C/P:BUS&ADV SER:VALUER
OUTS:C/P:BUS&ADV SER:VALUER
CONS/PROF:INFRASTRUCTRE&PLANNING
CONS/PROF:ENGINEERING
CONS/PROF:ENGIN CIVIL
OUTS:CONS/PROF:ENGIN CIVIL
CONS/PROF:ENGIN ELECTRICAL
OUTS:CONS/PROF:ENGIN ELECTRICAL
CONS/PROF:ENGIN MECHANICAL
OUTS:CONS/PROF:ENGIN M ECHANICAL
CONS/PROF:ENGIN STRUCTURAL
OUTS:CONS/PROF:ENGIN STRUCTURAL
C/P:INFR&PLN SER:ARCHITECTURAL
OUTS:C/P:INFR&PLN SER:ARCHITCTRL
C/P:INF&PLN SER:LND&QTY SURVEYOR
OUT:C/P:INF&PLN SER:LND&QTY SURV
C/P:INFR&PLN SER:TOWN PLANNER
OUTS:C/P:INFR&PLN SER:TWN PLANNR
28
Goods and Services…
• Contractors:Mnt&Rep,Imp Oth Infr Ass
Item has been expanded to provide for one on one link relating to maintenance, upgrades
or refurbishments with the infrastructure segment (Own Account / Outsourced).
Old Item Lowest Level
CONTR:MNT&REP,IMPRV OTH INFR ASS
OUTS CONTRCTRS:MNT&REP O/INF AS
PROJ CONTRCTRS:M&T,IMP OT INF A
Old
Segment
Detail No
New Item Lowest Level
3643 CONTR:MNT&REP OTH INFR ASS
4667
OUTS CONTRCTRS:MNT&REP O/INF AS
4668
OWN: CONTRCTRS:MNT&REP OT INF A
CONTR:UPG&ADD OTH INFR ASS
OWN CONTRCTRS:UPG&ADD OT INF A
CONTR:REF&REH OTH INFR ASS
OWN CONTRCTRS:REFB&REHB OT INF A
New
Segment
Detail No
1037
2578
2579
1038
2592
1039
2553
29
Goods and Services…
Fleet Services
The items relating to the management and operation of fleet have been grouped together
under FLEET SERVICES (F/SER). This will ensure that the full cost related to the
management of the departmental fleet is recorded together.
Old Item Lowest Level
TRAVEL AND SUBSISTENCE
T&S DOM WITHOUT OP:GG VHCL
T&S DOM WITHOUT OP:GG VHCL
PRJ T&S DOM WITHOUT OP:GG VHCL
T&S DOM WITH OP:GG VHICL
T&S DOM WITH OP:GG VHICL
PRJ T&S DOM WITH OP:GG VHICL
INVENTORY OTHER CONSUMABLES
INV OTH CONS:LICENCE PLATES
INV OTH CONS:LICENCE PLATES
PRJ INV OTH CONS:LICENCE PLATES
OPERATING PAYMENTS
O/P:CAR VALET & WASHING SERV
O/P:CAR VALET & WASHING SERV
PRJ O/P:CAR VALET & WASHING SERV
Old
Segment
Detail No
New Item Lowest Level
3334
FLEET SERVICES
3899
F/SER: KILOMETERS
5146
F/SER: KILOMETERS
5147
OWN: F/SER: KILOMETERS
3906
F/SER: KILOMETERS
5158
F/SER: KILOMETERS
5159
OWN: F/SER: KILOMETERS
3328
3813
F/SER: LICENCE PLATES
5011
F/SERS:LICENCE PLATES
5012
OWN:F/SERS:LICENCE PLATES
3336
3957
F/SER:CAR VALET & WASHING SERV
5208
F/SER:CAR VALET & WASHING SERV
5209
OWN:F/SER:CAR VALT & WASHNG SERV
New
Segment
Detail No
988
2469
3498
3499
2469
3498
3499
2473
3490
3491
2481
3474
3475
30
Goods and Services…
• Property Payments: Contract maintenance, improvements
Item has been expanded to provide for one on one link relating to maintenance, upgrades
or refurbishments with the infrastructure segment (Own Account / Outsourced).
Old Item Lowest Level
Old
Segment
Detail No
P/P:CONTRCTD MAINT, IMPROVE PROP
3872
OUTS P/P:CONTRACTD MAINT
5106
PRJ P/P:CONTRCTD MNT, IMPROVE
5107
New Item Lowest Level
CONTR:MNT&REP NON INFR ASS
OUTS CONTRCTRS:MNT&REP N-INF ASS
OWN: CONTRCTRS:MNT&REP N-INF ASS
CONTR:UPG&ADD NON INFR ASS
OWN CONTRCTRS:UPG&ADD N-INF A
CONTR:REF&REH NON INFR ASS
OWN:CONTRCTRS:REFB&REHB N-INF A
New
Segment
Detail No
1028
1028
2551
4236
1029
2552
1030
31
Goods and Services…
• Travel and Subsistence
The naming “WITH/WITHOUT OPERATOR” under TRAVEL AND SUBSISTENCE has
been removed, thus there is now one item for each classification. T&S DOM WITHOUT
OP: KM ALL (OWN TR) subsistence.
Old Item Lowest Level
T&S:DOM:TRANPORT W/OUT OPERATOR
T&S DOM WITHOUT OP:CAR RENTAL
T&S DOM WITHOUT OP:CAR RENT
PRJ T&S DOM WITHOUT OP:CAR RENT
T&S DOM WITHOUT OP:KM ALL(OWN TR
T&S DOM WITHOUT OP:KM AL(O-T
PRJ T&S DOM WITHOUT OP:KM AL(O-T
T&S DOM WITHOUT OP: KM ALL(SMS>)
T&S DOM WITHOUT OP:KM/A(SMS>
PRJ T&S DOM WITHOUT OP:KM/A(SMS>
T&S DOM WITHOUT OP:GG VHCL
T&S DOM WITHOUT OP:GG VHCL
PRJ T&S DOM WITHOUT OP:GG VHCL
Old
Segment
Detail No
New Item Lowest Level
3895 T&S:DOM:TRANSPORT
3896
T&S DOM:CAR RENTAL
5140
T&S DOM :CAR RENT
5141
OWN:T&S DOM:CAR RENT
3897
T&S DOM WITHOUT OP:KM ALL(OWN TR
5142
T&S DOM WITHOUT OP:KM AL(O-T
5143
OWN T&S DOM WITHOUT OP:KM AL(O-T
3898
T&S DOM:KM ALLOWANCE SMS
5144
T&S DOM:KM ALLOWANCE SMS
5145
OWN:T&S DOM:KM ALLOWANCE SMS
3899
5146
5147
New
Segment
Detail No
2173
3405
3997
3998
3406
3999
4000
3407
4001
4002
32
Interest…
Lease transactions
 Operating lease item still under goods and services;
 Finance lease items created per category of asset under purchase /
construction of capital assets;
 Interest on Finance lease not recorded separately
 Classification of lease transaction to be explained in detail in the
Lease Circular.
33
Payments for Financial Assets
• The categories for PAY FIN ASS:WATER TRAD ACC, TRADING
ENTITY:DEPRECIATION and TRAD ENT:LOSS ON SALE OF CAP ASS
were removed as these were originally created for recording accruals
transactions for trading entities, however, these items have not been
used in the recent past. Similar items under Revenue were also
removed.
34
Transfers and Subsidies
• The creation of an item for payment towards bursaries related to
research and development BURSARIES (R&D) was created on request
from the Department of Science and Technology. It was created to cater
for postgraduate students (all masters and PhDs excluding coursework
degrees) and organised lifelong training for scientists and engineers or
the equivalent for those intending to exercise an STA’s
35
Payments or Construction of Capital Assets
• Changes to the Capital assets category include:
– The item SMA Parachutes and Aircraft Launch/Landing/Ground Handling Equipment
has been moved from SMA to Machinery and Equipment.
– The item Normal Aircraft has been changed to Military Aircraft
– An item for SPECIALISED MILITARY TRAILERS has been created, which includes
trailers specifically designed for the military.
– An item for MILITARY COMMUNICATION EQUIPMENT has been created, which
caters for specialised communication equipment for military use.
36
ASSET
SEGMENT
37
Asset Segment
• Asset Segment Changes:
•
Previously duplicated assets removed i.e. Clinic & Community Health Centre
•
Lease assets has been removed, transactions can be identified in the Item and
Infrastructure segment.
NB. Department to use “Tangible Capital Asset” to create posting level for lease assets. It is important
for the posting level to unique from the normal capital asset. Example when creating a posting level:
TANGIBLE CAPITAL ASSETS
BUILD & OTHER FIXED STRUCTURES
NON-RESIDENTIAL BUILDINGS
OFFICE BUILDINGS
LEASE:40 CHURCH SQUARE
40 CHURCH SQUARE
•
Laboratories and Mortuaries moved from Non-residential to Health assets
•
Prefabricated and Portable Buildings duplicated
Health: Prefabricated and Portable Buildings
School: Prefabricated and Portable Buildings
38
PROJECT
SEGMENT
39
Project Segment
• Project Segment Changes:
•
Infrastructure reporting moved to the Infrastructure segment
•
Project Segment changed to only identify Projects within the Department
•
Economic Classification removed from the Project Segment
•
New project category for Scientific and Technological Activities
•
Departments to provide for lower level details (Breakdown allowed)
40
FUND
OBJECTIVE
RESPONSIBILITY
REGIONAL IDENTIFIER
SEGMENTS
No changes made to the segments
41
Questions?
SCOA Contact Details:
Helpdesk: 012 315 5311
Email: [email protected]
Website: http://scoa.treasury.gov.za
42

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