section a, municipal budget and reporting regulations ... · gansen naidoo. alignment to the...
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Section A, municipal budget and reporting regulations
Gansen Naidoo
Alignment to the Accountability Cycle
Municipal Standard Chart of Accounts (mSCOA)
Projects based, linked to the 7 mSCOA segments
Submission of Budget Documentation
Submission of Budget Documentation
Submission requirements :
• A and D schedules – printed and electronic formats
• mSCOA Budget Data String – uploaded onto the LG Portal
• Budget and IDP alignment Data String – uploaded onto the LG Portal
MBBR and Segment Linking
Project segment linked to A1, A5, A9, SA 34b, SA 36, SA 37 and CAA
Function SA36
Fund to A1
Region SA36
Costing not applicable
Item to all schedules
from A1 to 10 and SA1 to SA 37 inclusive of
all IYR
EMS – Automation of A-Schedules
EMS – Automation of A-Schedules
EMS – Budget Data String
EMS – Budget Data String
EMS – IDP/Projects Data String
Budget Assessments
What should we look for:
• Project segment is directly aligned to the IDP – Capital and Operating;
• Function segment implemented fully;
• Item segment correctly used, and correctly aligned to the other segments;
• Funding segment used at lowest level of the chart;
• Region segment utilised and not all done for whole of the municipality;
• Costing done at the municipality
Budget Assessments
Rules: Projects Segment :
• Both Capital and Operational projects must be used;
• Capital projects can only have Item: Assets;
• Operation projects can only have Item: Expenditure;
• Default projects are for Revenue and non-cash transactions;
• Default projects may NOT have Item: Expenditure and Assets;
• Municipal running cost is only for the items required for the organisation to
function, and not for any services that the municipality renders;
• Typical work streams must be utilised fully in the municipality
Budget Assessments
Rules: Function Segment :
• Function segment must be used to the full extend;
• Remuneration of Councillors can only be against Function: Mayor and Council;
• Items generally specific for one function can only be against that function:
• Bulk purchase electricity => Function: Electricity;
Budget Assessments
Rules : Item Segment
• Salaries for management must be specified as per chart;
• Councillors remuneration must be specified as per chart;
• Revenue items must be against the relevant Function:
• Refuse Removal Fees => Function: Waste;
• Travel and Subsistence items must be broken down;
• Revenue forgone must have the correct segmentation;
Budget Assessments
Rules : Funding Segment
• Services should fund themselves –
• Align Funding to the Function segment;
• Equitable share must be broken down per item on the posting level;
• Grant funding should balance;
• Non-funding transactions will be investigated and cannot be used as default
Budget Assessments
Rules : Region Segment
• Correct use of Region for the specific municipality;
• Use of head office and whole of municipality inline with actual expenditure;
• Revenue per ward;
• Capital projects per ward.
Budget Assessments
Rules : Costing Segment
• Costing segment must be used – other than Default;
• Default Costing may NOT have default expenditure or revenue;
• Charges and Recoveries should balance.
Budget Assessments – Sample NT Analysis
Demo – A Schedule and Budget Data String
System DemoA Schedule and Budget Data String
Budget Reporting and Assessments
QUESTIONS?