mSCOA Integrated Consultative Forum

Nelson Mandela Bay 25 / 26 February 2015

Presented by National Treasury: Chief Directorate Local Government Budget Analysis

mSCOA Integrated Consultative Forum

Presented by National Treasury: Chief Directorate Local Government Budget Analysis

Agenda Item: Assessment of mSCOA

readiness

Road till here

3

Initial Consultative

Process

Presentations & Regulation

Promulgation

We believe some of the pilot municipalities are almost there but now need to see and test. We will therefore embark on a site visitation cycle to obtain the factual positions and updating our risk registers and assist with risk mitigation plans.

First Question ?

4

Failure is not an option!

We crushed Y2K.

We achieved MTREF budget reforms.

In year reports done consistently by 278 Municipalities.We will achieve mSCOA !

Conceptual test vs actual

5

Site

vis

its

Pro

ject

cha

rter

s an

d ris

k re

gist

ers

Nee

d to

see

tra

nsac

tions

Budget tool

Demo data on Transactions.

All Sub systems.

Costing

Assets

Implementation plans.

Current Risks to be discussed and resolved.

Budget for project approved.

Fall over and disaster recovery plans

Opening Balances

Prior year Figures

Ensuring that the project is owned by the pilots.

Review of risk register.

Signed SLA’s

Project Charters Signed.

Live transaction posting and data extraction to be physically demonstrated .

Our Major Tick Boxes

6

Does the system provider / Municipality have a fully thought through project

plan?

Pre Implementation

Plans

• Does the project plan cater for disaster recovery fall over plans / The Y2K effect?

• Does it include the current version to be replaced by un-tested versions of replacement systems? If so what is the Specific Audit risk mitigation plans?

• What resources have been allocated to these plans and are all resources secured?• Institutions e.g.. National Treasury and Provincial Treasury,• Service Providers and ICT providers, • In House Municipal staff designated and dedicated.• Are outside parties contracted and secured?

Our Major Tick Boxes cont.

7

Is there current activity at the shop floor?

Demo data / “Parallel testing”

• To test the budget capturing of all 7 segments of mSCOA?• Have the Municipalities started to retro-fit the current Vote structure to mSCOA /

Managing the Audit Opening Balances?• To Test the synchronisation up stream as well as drilling down stream between Sub

ledgers to the GL?• Is the development far enough progressed to test the portal access and ETL (Extract

transfer and Load Protocols) requirements?• Will the Pilots be able to transact on 1 July in the New year?• Are short codes going to be used and is there a one to one relationship with the Chart

and segments?• How ready is the pilots for normal in year and Budget reporting?• What is the current audit opinion and how does it impact on piloting?

Achieving The Objective

8

What will need to be done?Achieving the

results

• Site visits to all pilots and Metro’s • Physical testing needs to be proven live.• Load and database acceptance will be tested.• Project plans will be reviewed and proposals to rectify will be made.• Signed Copies of MOU and SLA need to be provided.• How and who is dealing with the Audit file in terms of migration conversion

to mSCOA, is this a upgrade?• Continued ongoing monitoring and support will need to be agreed between

Provincial Treasuries, Municipalities and 3rd parties.

Achieving The Objective

9

What the project is

• It’s a Pilot.• It’s testing of the up load of and configuration of the GL transactions. • It’s the proofing grounds of mSCOA for both the concept as well as the

systems in use.• It’s the testing of the classifications / chart for completeness.• It’s an organizational Reform.

Achieving The Objective

10

What the project is not

• A replacement of the current reporting requirements for budget, in-year and annual reporting.

• A National Treasury managed project, ( We are only facilitating and not an integral part of the implementation project.)

• Not a mere compliance to regulations.• Not an IT or Financial only reform. “Need to be adopted organization wide”.

Municipal Manager

Budget & Treasury

Service Providers

Non Financial Managers

NT PT

Pilot Site Visits - Attendees required.

11

Pilots Visits to Establish Project Governance & Conduct Readiness Assessments

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Municipalities / Metro's Proposed dates Engagement Parties

Senqu Local Municipality 04-Mrt Eastern Cape PT,Sebata

Sol Plaatje Local Municipality 05-Mrt Northern Cape PT,Business Connexion,Payday

Elias Motsoaledi Local Municipality 09-Mrt Limpopo PT,CISC ,VIP

Victor Khanye Local Municipality 10-Mrt Mpumalanga PT,Sebata

Nkangala District Municipality 10-Mrt Mpumalanga PT,CISC ,VIP

Ekurhuleni Metro 11-Mrt Gauteng PT,Business Connexion

Merafong Local Municipality 12-Mrt Gauteng PT,BIQ

Tlokwe Local Municipality 12-Mrt North West PT,Vesta

Setsoto Local Municipality 13-Mrt Free state PT,CISC ,VIP

Knysna Local Municipality 16-Mrt Western Cape PT,Rdata

uMgungundlovu District Municipality 17-Mrt KwaZulu-Natal PT,Sage Evolution,VIP

Richmond Local Municipality 17-Mrt KwaZulu-Natal PT,Fujitsu

uMhlathuze Local Municipality 18-Mrt KwaZulu-Natal PT,Fujitsu,VIP

Drakenstein Local Municipality 23-Mrt Western Cape PT,Business Connexion,DRL

Overstrand Local Municipality 24-Mrt Western Cape PT,Bytes Technologies,Payday

Logistics

13

The Pilot Municipality will need to arrange the following logistically:

Availability of key personnel for the engagement.

Invitations to the PT and Service Providers.

Ensure that the Service Providers is available.

The venue and time allocations.

Kindly note that the dates as given needs to be adhered to.

Proposed Agenda

14

System Demo / Live tsting

Can the current budget be captured.

When will it be able to be pre tested.

Allocate test and user acceptance sign-off.

Can the data be provided.

Is sub-sytems merged with out intervention.

RisksRisk Register Mitigation plans Disaster recovery. Audit file. Opening Balances

Project CharterRoles and resources Detail implementation and project plans. Signatories and Budgets..

Section 71 / Budgets / Statutory reportsCurrent formats remain NT to build and test against old formats.

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Q & A