scoa v4 re-implementation introduction national and provincial roadshows presenter: scoa technical...

SCOA V4 RE-IMPLEMENTATIONINTRODUCTION

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:

– improving the accuracy of allocations across the SCOA segments

thereby eliminating the inconsistent economic classification of

transactions;

– eliminating the duplication of projects in the project segment;

– improving system processing times;

– rationalising the Item segment;

3

1

2

3

4

How are these objectives achieved?

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

1

How are these objectives achieved (cont.)?

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

2


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

3


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

4

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

11

•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.Infrastructure segment

•The purpose of this segment is to record receipt and payment transactions as well as transactions in assets and liabilities. Item 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. Asset segment

•The purpose of this segment is to identify whether or not a payment is part of a project.Project segment

•The purpose of this segment is to identify the source of funding from which payments are effected, and the nature of receipts.Fund 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.

Objective 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.

Responsibility segment

•The purpose of this segment is to identify which region benefits from government spending. Regional Identifier segment

Standard Chart of Accounts

12

Tra

ns

ac

tio

n

Infrastructure segment

Item segment

Asset segment

Project segment

Fund segment

Objective Segment

Responsibility segment

Regional segment

Order of capturing

The economic classification

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 non-

infrastructure and Stand-alone”Non-Infrastructure current

Non-infrastructure / stand-alone current

Maintenance and repairs current

Non-infrastructure capitalNon-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 systemThe 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 ServicesThe 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 CostsThe 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.

26

Old Segment Detail No

New Segment Detail No

AUDIT COST:EXTERNAL 3340 AUDIT COST:EXTERNAL 344AUDIT FEES:EXT CURRENT YEAR 3533 AUDIT COST EXT:REGULARITY 1084

AUDIT FEES:EXT CURRENT YEAR 4456 AUDIT FEES:EXT CURRENT YEAR 2702PRJ AUDIT FEES:EXT CURRENT YEAR 4457 AUDIT FEES:EXT CURRENT YEAR 3620

AUDIT FEES:EXT DISBURSEMENTS 3534 OWN:AUDIT FEES:EXT CURRENT YEAR 3621AUDIT FEES:EXT DISBURSEMENTS 4458 AUDIT FEES:EXT DISBURSEMENTS 2703PRJ AUDIT FEES:EXT DISBURSEMENTS 4459 AUDIT FEES:EXT DISBURSEMENTS 3622

AUDIT FEES:EXT PREVIOUS YEAR 3535 OWN:AUDIT FEES:EXT DISBURSEMENTS 3623AUDIT FEES:EXT PREVIOUS YEAR 4460 AUDIT FEES:EXT PREVIOUS YEAR 2704PRJ AUDIT FEES:EXT PREVIOUS YEAR 4461 AUDIT FEES:EXT PREVIOUS YEAR 3624

OWN:AUDIT FEES:EXT PREVIOUS YEAR 3625

Old Item Lowest Level New Item Lowest Level

Goods and Services

• External Computer ServicesThe 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 serviceNew 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…

28

CONS/PROF:BUSINESS&ADVISORY SERV

C/P:BUS&ADV SER:FIN MANAGEMENT

OUTS:C/P:BUS&ADV SER:FIN MANGMNT

C/P:BUS&ADV SER:PRJ MANAGEMENT

OUTS:C/P:BUS&ADV SER:PRJ MANGMNT

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 MECHANICAL

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

Goods and Services…

• Contractors:Mnt&Rep,Imp Oth Infr AssItem has been expanded to provide for one on one link relating to maintenance, upgrades or refurbishments with the infrastructure segment (Own Account / Outsourced).

29



CONTR:MNT&REP,IMPRV OTH INFR ASS 3643 CONTR:MNT&REP OTH INFR ASS 1037OUTS CONTRCTRS:MNT&REP O/INF AS 4667 OUTS CONTRCTRS:MNT&REP O/INF AS 2578PROJ CONTRCTRS:M&T,IMP OT INF A 4668 OWN: CONTRCTRS:MNT&REP OT INF A 2579

CONTR:UPG&ADD OTH INFR ASS 1038OWN CONTRCTRS:UPG&ADD OT INF A 2592

CONTR:REF&REH OTH INFR ASS 1039OWN CONTRCTRS:REFB&REHB OT INF A 2553



Fleet ServicesThe 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.

30



TRAVEL AND SUBSISTENCE 3334 FLEET SERVICES 988T&S DOM WITHOUT OP:GG VHCL 3899 F/SER: KILOMETERS 2469

T&S DOM WITHOUT OP:GG VHCL 5146 F/SER: KILOMETERS 3498PRJ T&S DOM WITHOUT OP:GG VHCL 5147 OWN: F/SER: KILOMETERS 3499

T&S DOM WITH OP:GG VHICL 3906 F/SER: KILOMETERS 2469T&S DOM WITH OP:GG VHICL 5158 F/SER: KILOMETERS 3498PRJ T&S DOM WITH OP:GG VHICL 5159 OWN: F/SER: KILOMETERS 3499

INVENTORY OTHER CONSUMABLES 3328INV OTH CONS:LICENCE PLATES 3813 F/SER: LICENCE PLATES 2473

INV OTH CONS:LICENCE PLATES 5011 F/SERS:LICENCE PLATES 3490PRJ INV OTH CONS:LICENCE PLATES 5012 OWN:F/SERS:LICENCE PLATES 3491

OPERATING PAYMENTS 3336O/P:CAR VALET & WASHING SERV 3957 F/SER:CAR VALET & WASHING SERV 2481

O/P:CAR VALET & WASHING SERV 5208 F/SER:CAR VALET & WASHING SERV 3474PRJ O/P:CAR VALET & WASHING SERV 5209 OWN:F/SER:CAR VALT & WASHNG SERV 3475



• Property Payments: Contract maintenance, improvementsItem has been expanded to provide for one on one link relating to maintenance, upgrades or refurbishments with the infrastructure segment (Own Account / Outsourced).

31



P/P:CONTRCTD MAINT, IMPROVE PROP 3872 CONTR:MNT&REP NON INFR ASS 1028OUTS P/P:CONTRACTD MAINT 5106 OUTS CONTRCTRS:MNT&REP N-INF ASS 1028PRJ P/P:CONTRCTD MNT, IMPROVE 5107 OWN: CONTRCTRS:MNT&REP N-INF ASS 2551

CONTR:UPG&ADD NON INFR ASS 4236OWN CONTRCTRS:UPG&ADD N-INF A 1029

CONTR:REF&REH NON INFR ASS 2552OWN:CONTRCTRS:REFB&REHB N-INF A 1030



• Travel and SubsistenceThe 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.

32



T&S:DOM:TRANPORT W/OUT OPERATOR 3895 T&S:DOM:TRANSPORT 2173T&S DOM WITHOUT OP:CAR RENTAL 3896 T&S DOM:CAR RENTAL 3405

T&S DOM WITHOUT OP:CAR RENT 5140 T&S DOM :CAR RENT 3997PRJ T&S DOM WITHOUT OP:CAR RENT 5141 OWN:T&S DOM:CAR RENT 3998

T&S DOM WITHOUT OP:KM ALL(OWN TR 3897 T&S DOM WITHOUT OP:KM ALL(OWN TR 3406T&S DOM WITHOUT OP:KM AL(O-T 5142 T&S DOM WITHOUT OP:KM AL(O-T 3999PRJ T&S DOM WITHOUT OP:KM AL(O-T 5143 OWN T&S DOM WITHOUT OP:KM AL(O-T 4000

T&S DOM WITHOUT OP: KM ALL(SMS>) 3898 T&S DOM:KM ALLOWANCE SMS 3407T&S DOM WITHOUT OP:KM/A(SMS> 5144 T&S DOM:KM ALLOWANCE SMS 4001PRJ T&S DOM WITHOUT OP:KM/A(SMS> 5145 OWN:T&S DOM:KM ALLOWANCE SMS 4002

T&S DOM WITHOUT OP:GG VHCL 3899T&S DOM WITHOUT OP:GG VHCL 5146PRJ T&S DOM WITHOUT OP:GG VHCL 5147


33

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.

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

38

• 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 SQUARE40 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

Asset Segment

PROJECT

SEGMENT

39

40

• 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)

Project Segment

FUND

OBJECTIVE

RESPONSIBILITY

REGIONAL IDENTIFIER

SEGMENTSNo changes made to the segments

41

Questions?

SCOA Contact Details:

Helpdesk: 012 315 5311

Email: [email protected]

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

42

mailto:[email protected]

scoa v4 re-implementation introduction national and provincial roadshows presenter: scoa technical...

Documents