PROBLEM STATEMENT Historically system application made use of structures” to set-up account numbers for “flat transactional recording to the general ledger. The introduction of the mSCOA, being a multi-dimensional chart of accounts, necessitated a shift from the typical structure” to a dimensional selection avoiding the of a “flat “building” structure”. “vote Some system developers experience difficulties in setting-up the lengthy account numbers within the application. Some matters raised in this regard: FORMAL CONSULTATIONS From Comment Response by National Treasury Ethekweni Municipality The proposal of segments as reflected The account numbers for the posting [3.1] in the 'Schedule' to the Trial level detail per segment will be provided Regulations is supported in principle. in Version 5 of the SCOA Tables. A 6 However, what are critical are the digit code had been designed that coding structure and what the identifies the segment, group of account respective fields will represent to and posting level account. National National Treasury and the Treasury engaged with the system Municipality. The number of fields in vendors in individual meetings to provide the account number will determine the the vendors the opportunity to give a extent to which financial and other "status update" on progress in meeting data can be appropriately coded to the SCOA System Requirements, provide the requisite information for Business Process and Minimum System reporting purposes. Whilst our own IT Requirements. National Treasury did an system is flexible enough o achieve independent evaluation of the progress this, many Municipalities with less made and the "readiness of system sophisticated IT systems may not be vendors" to commence with the piloting able to comply. process". This type of direct engagement will intensify from 2014 up to full implementation of SCOA. National Treasury will not be "vetting" vendors as SCOA "compliant" but will give priority to system vendors meeting the requirements to commence piloting the selected municipalities. If a vendor is not successful in meeting SCOA compliance the vendor will need to inform their municipalities within the contractual arrangements with the municipality. National Treasury will be working with the system vendors to assist them in meeting the requirements and continue their engagements with the municipalities. It might be that due to business considerations the system vendors decide not to adopt the National Treasury requirements and thus discontinue support to local government.
PROBLEM STATEMENT Historically system application made use of “flat structures” to set-up account numbers for transactional recording to the general ledger. The introduction of the mSCOA, being a multi-dimensional chart of accounts, necessitated a shift from the typical “flat structure” to a dimensional selection avoiding the “building” of a “vote structure”. Some system developers experience difficulties in setting-up the lengthy account numbers within the application. Some matters raised in this regard: FORMAL CONSULTATIONS From Comment Response by National Treasury Ethekweni Municipality [3.1] The proposal of segments as reflected in the 'Schedule' to the Regulations is supported in principle. However, what are critical are the coding structure and what the respective fields will represent to National Treasury and the Municipality. The number of fields in the account number will determine the extent to which financial and other data can be appropriately coded to provide the requisite information for reporting purposes. Whilst our own IT system is flexible enough o achieve this, many Municipalities with less sophisticated IT systems may not be able to comply. The account numbers for the posting level detail per segment will be provided in Version 5 of the SCOA Tables. A 6 digit code had been designed that identifies the segment, group of account and posting level account. National Treasury engaged with the system vendors in individual meetings to provide the vendors the opportunity to give a "status update" on progress in meeting the SCOA System Requirements, Business Process and Minimum System Requirements. National Treasury did an independent evaluation of the progress made and the "readiness of system vendors" to commence with the piloting process". This type of direct engagement will intensify from 2014 up to full implementation of SCOA. National Treasury will not be "vetting" vendors as SCOA "compliant" but will give priority to system vendors meeting the requirements to commence piloting the selected municipalities. If a vendor is not successful in meeting SCOA compliance the vendor will need to inform their municipalities within the contractual arrangements with the municipality. National Treasury will be working with the system vendors to assist them in meeting the requirements and continue their engagements with the municipalities. It might be that due to business considerations the system vendors decide not to adopt the National Treasury requirements and thus discontinue support to local government. Trial