STANDARD CHART OF ACCOUNTS (SCOA)WORKSHOP

Changes to be implemented – 1 April 2012

SCOA ROADSHOWS – NATIONAL AND PROVINCES

Presenter: SCOA Technical Committee | National Treasury| March 2012

OVERVIEW

• Changes to the SCOA – Why?• Inconsistencies

• Changes – 1 April 2012

• Capturing of Budgets• Capturing of budgets on the Financial System (BAS)

Summary: Important issues to remember

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Changes to the SCOA

1 April 2012

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INTRODUCTION OF CATEGORY LINKS

Departments not recording own account project spending – projects mainly outsourced, mainly purchase of Stand Alone items

Compensation of Employees – Stand alone current

Goods and Services – Stand alone current

Transfers and Subsidies – Transfer project items

Payments for Capital Assets – Stand alone capital

Business as usual, just use new BAS codes

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INTRODUCTION OF CATEGORY LINKS – CONT.

Departments recording Own Account construction of Capital Assets (Public Works, Road and Transport, Agriculture, etc.)

Use the same set of accounts as other departments for recording Stand alone items

In addition the new chart provides for project items in the Item segment that can be linked to projects in the Project segment (PRJ Prefix)

Consultation between “Own Account Departments” and SCOA Committee on access to items

Such departments can still have inconsistencies

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CATEGORY LINKS

Additional Category links for the following:

•No Projects Stand Aloneo Minor Assets to No Project Stand Alone Currento Major Assets to No Project Stand Alone Capital

•Finance Leases moved to Purchases of Capital Assetso To be linked to No Project Stand Alone Capital

•Outsourced projectso Outsourced provided in Item segment – Linked to outsourced in

Project

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OWN ACCOUNT vs. OUTSOURCED PROJECTS

Outsourced Projects – Definition:•Capital projects refer to when the department engages the services of a contractor to complete the entire asset construction project. The contractor will purchase all the inputs required to construct the asset. Invoice for payment will only be received from the contractor and such payments will be allocated to “Payments for Capital Assets”. The Immediate and ultimate use is the same.

Own Account Projects – Definition:•Capital projects refer to activities undertaken by the department in purchases of all inputs e.g. salaries, contractors, material, etc. (Immediate use, recorded in the item segment). The end of the goal is a capital asset (Ultimate use, recorded in the project segment). Inputs items are capitalised as part of the cost of capital assets .

Projects•Existing Infrastructure Assets

Maintenance and repairs Upgrades and Additions Rehabilitations and Refurbishments

•New Infrastructure Assets New Infrastructure Assets

Detailed definitions in Maintenance Circular

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OWN ACCOUNT vs. OUTSOURCED

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PROJECTS GOODS AND SERVICESPROJECTS INFRASTRUCTURE

PRJ:EXISTING INFRASTRUC ASSETS CONTRACTORSMAINTENANCE & REPAIR CURRENT CONTRCTRS:MNT&REP,IMP OTH INF AS

OUTS MAINTENANCE&REPAIR CURRENT OUTS CONTRCTRS:MNTT&REP O/INF AS

OUTSOURCED MNT&REP OF OTHER INFRASTRUCTURE ASSET. I.E MNT&REP OF ROADSITEM SEGMENTPROJECT SEGMENT

PROJECTS NON INFRASTRUCTURE GOODS AND SERVICESPRJ:NOT RELATED TO INFRSTRUC ASS CONTRACTORS

NOT RELTED INFRASTRU ASS PRJ CUR CONTRCTRS:MNT&RP,IMP N-INF AOUTS N/INF/A REL:MNT&REP PRJ CUR OUTS CONTRCTRS:MNT&REP N-INF ASS

PROJECT SEGMENT ITEM SEGMENTOUTSOURCED MNT&REP OF MACHINERY AND EQUIPMENT

PROJECT SEGMENT ITEM SEGMENT

PROJECT GOODS AND SERVICES

PROJECTS INFRASTRUCTURE INVENTORY:OTH CONSUMBLES

MAINTENANCE AND REPAIR CURRENT INV OTH CONS:FENCING MATER

MAINTENANCE AND REPAIR CURRENT PRJ INV OTH CONS:FENCING MATER

PROJECT: REPAIR OF FENCE* INVENTORY:MATERIALS & SUPPLIES

INV MAT&SUP:NOTIC BOARD&SIGN

PRJ INV MAT&SUP:NOTIC BOARD&SIGN

OWN ACCOUNT MAINTENANCE AND REPAIRS OF INFRASTRUCTURE (FENCE)

OTHER ITEM SEGMENT CHANGES

Restriction of Transfer Payments

•Only entities that receive transfers from the specific department, not the full

list of entities

Reporting on Information and Communication Technology (ICT) Spending

•DPSA reporting requirement in terms of Cabinet directive

•Mostly existing items broken into more detail

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GOODS AND SERVICES

Changes to Goods and Services Category:

Reduction of the posting levels on the Chart– Posting level 9 – 11 has been moved to level 8– Removed Tangible (426) under assets <5000 to align with assets– Removed other Machinery under assets<5000 which was duplicated twice– Moved some of the detailed levels of assets<5000

– Moved T&S Public Transport items up

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1 2 3 4 5 6 P/NP LEVEL LEVEL B/ALLOWEDPAYMENTS N 1 N

PAYMENTS N 2 NGOODS AND SERVICES N 3 N

ASSETS <R5000 N 4 NTANGIBLE ASSETS<R5000 N 5 NMACHINERY & EQUIPMENT<R5000 N 5 N

MACHINERY&EQUIPMENT<R5000 N 6 N

ASSET AND PROJECT SEGMENT

Changes to the Asset and Project segments– Aligned to the Infrastructure reporting model on Assets

– Groupings of some sector specific assets (Education, Health, etc.)

– Removed “No Project Listed” option on the Chart

Current Structure New Structure

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PROJECTS INFRASTRUCTUREPRJ:EXISTING INFRASTRUC ASSETS

MAINTENANCE & REPAIR CURRENTMAINT & REP: NO PROJECT LISTED

UPGRADE & ADDITIONS CAPITALUPGRADE & ADD:NO PROJECT LISTED

REFURB & REHAB CAPITALREFURB & REHAB:NO PROJECT LISTED

PRJ:NEW INFRASTRUC ASSETS(CAP)PRJ:NEW INFRASTRUC ASSETS(CAP)

NEW INFRSTRUC:NO PROJECT LISTED

PROJECTS

PROJECTS INFRASTRUCTURE

PRJ:EXISTING INFRASTRUC ASSETS

MAINTENANCE & REPAIR CURRENT

MAINTENANCE & REPAIR CURRENT

OUTS MAINTENANCE&REPAIR CURRENT

UPGRADE & ADDITIONS CAPITAL

UPGRADE & ADDITIONS CAPITAL

OUTS UPGRADE & ADDITIONS CAPITAL

REFURB & REHAB CAPITAL

REFURB & REHAB CAPITAL

OUTS REFURB & REHAB CAPITAL

SUGGESTED PROJECT NAMES

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Health Public Works

Facility Name: Project Name

Greytown District Hospital Botshabelo Community Hall

Albertina Clinic Tshwane Office Building

Maluti Community Health Centre

Sport,Arts & Culture

Roads Project Name

Road Name: Jacobsdal Ratanang Library

R21: Pretoria to Johannesburg (54 km) Fezile Dabi Stadium

D3671: Tshituni to Musekwa (10 km)

D511: Kraalhoek to Mantserre (12 km) Environmental Affairs & Tourism

Project Name

Agriculture Gariep Dam

Project Name Bochum Resort

Lejweleputswa irrigation scheme

Kopano broilers Human Settlements

Motheo livestock project Project Name

Alexandra Urban Renewal (500 Low Cost Houses)

Social Development Soshanguve Extension 7 (800 RDP Houses)

Project Name

Mmakone Youth Centre

Thabo Mofutsanyane Secure Centre

Botlokwa Old Age Home

ASSETS SEGMENT CHANGES

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HEALTH ASSETS

HOSPITALS

HOSPITAL LEVEL 1 (DISTRICT HOSP)

HOSPITAL LEVEL 2 (REGIONAL HOSP)

HOSPITAL LEVEL 3 (CENTRAL HOSP)

HOSPITAL LEVEL 3 (TERTIARY HOSP)

SPECIALISED HOSPITAL

PRIMARY HEALTH CARE

COMMUNITY HEALTH CENTRES

CLINICS

OTHER HEALTH ASSETS

AMBULANCE STATIONS & BASE

HEALTH TRAINING FACILITY

ACCOMMODATION - DOCTORS & NURSES

HEALTH LABORATORY

HEALTH FORENSIC MORTUARY

HEALTH PHARMACEUTICAL DEPOTS

HEALTH TECHNOLOGY

HEALTH SUPPORTING INFRASTRUCTURE

SPORT REHABILITAION CENTRES

SPORTS FACILITIES

SPORTS COMPLEX

STADIUMS

SWIMMING POOL

FUND SEGMENT

Changes to the Fund Segment:

– Conditional Grants

• Gen Account for individual grants

– Donor Funds

• National Treasury to control creation of Donor Projects

• Removed non-posting levels

• Gen Account for individual donors

• Distinctions between local and foreign donors

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CURRENT STRUCTURE

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1 2 3 4 5 6 P/NP LEVEL

LEVEL BREAKDOWN ALLOWED

EXPENDITURE:VOTED N 1 N

DEPARTMENTAL APPROPRIATION N 2 N

CONDITIONAL GRANT PAYMENTS N 3 N

CONDITIONAL GRANTS: ALL DEPTS N 4 N

AGRICULTURE,FORESTRY & FISHERIES N 5 N

ILIMA/LETSEMA PROJECTS Y 6 N

LAND CARE PROG GRNT:POV REL&INFR Y 6 N

COMPREH AGRIC SUPPORT PR GRNT Y 6 N

DONOR FUNDS N 1 N

GENERAL ACC OF DONOR PAYMENTS N 2 N

GEN ACC OF DONOR PAYMENTS Y 3 N

DONOR:AFRICAN RENAISSANCE N 2 Y

DONOR:AIR TRAFFIC&NAVIGATIO SERV N 2 Y

DONOR:ANGOLA N 2 Y

CHANGES 1 APRIL 2012

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1 2 3 4 5 6 7 P/NP LEVEL

LEVEL BREAKDOWN ALLOWED

EXPENDITURE:VOTED N 1 NDEPARTMENTAL APPROPRIATION N 2 N

CONDITIONAL GRANT PAYMENTS N 3 NCONDITIONAL GRANTS: ALL DEPTS Y 4 N

AGRICULTURE,FORESTRY & FISHERIES N 5 NILIMA/LETSEMA PROJECTS N 6 N

ILIMA/LETSEMA PROJECTS Y 7 NGEN ACC:ILIMA/LETSEMA PROJECTS Y 7 N

LAND CARE P GRT:POV RE&INF N 6 NLAND CARE P GRT:POV RE&INF Y 7 NGEN ACC:LAND CARE P GRT:P RE&INF Y 7 N

COMPR AGRIC SUPP PR GRNT N 6 NCOMPR AGRIC SUPP PR GRNT Y 7 NGEN ACC:COMPR AGRIC SUPP PR GRNT Y 7 N

DONOR FUNDS N 1 NLOCAL DONOR FUND N 2 N

DONOR: VODACOM N 3 NDONOR:VODACOM EXP N 4 N

PROJECT NAME:GLOBAL WARMING Y 5 NGEN ACC OF DONOR:VODACOM Y 4 N

FOREIGN DONOR N 2 NDONOR: EU N 3 N

DONOR: EU EXP N 4 NPROJECT NAME:HIV RESEARCH Y 5 N

GEN ACC OF DONOR:EU Y 4 N

DONOR FUNDING PROJECTS

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DONOR DEPARTMENT PROJECT

Canada Social Development Child Protection Programme

Global Fund Health

Strengthening National and Provincial capacity for the Prevention, Treatment and Support Related to HIV/AIDS and Tuberculosis

EUCooperative Governance and Traditional Affairs

Expanding and Strengthening Public Participating in Local Government Programme

United Kingdom Trade and IndustrySupport to South Africa's Growth Strategy Programme

Canada Public Service and Administration Gender Mainstreaming Project

EU Science and Technology PAERIP Programme

Canada Science and TechnologyEpidemiological Model for HIV/AIDS Programme

UNICEF Justice and Constitutional Development

Accelerating Child and Women's Protection and Response to violence and HIV and AIDS in SA

USAID National Treasury Support for Aid Effectiveness Activities

Denmark Public Service and Administration Business Anti-Corruption Training

ICGEB Agriculture, Forestry and FisheriesSA/Argentina joint regional bio-safety workshop

World Bank Environmental Affairs African Stockpile Programme

Norway National Treasury Aid-Effectiveness Programme

EU National Treasury ODA Programme

THE END

Changes – 1 April 2012

Questions?

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Capturing of Budgets

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CAPTURING OF BUDGETS

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CAPTURING OF BUDGETS

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Summary:

Important notes to remember

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SUMMARY: IMPORTANT TO REMEMBER

• Category links have been introduced to eliminate inconsistencies

• Item names have not changed, however BAS codes have changed

• 2011/12 Items will be deactivated in April, do not capture budget against these items

• Outsourced projects captured to OUTS items in both Item and Project segments

• Own account projects captured to PRJ items in Item and Project segment – Access to these limited, must agree with SCOA Committee

• Tool available to map old BAS codes to new codes

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POSTING LEVEL ITEM BAS CODEADVERT:AUCTIONS 512 Remove - 1 April 2012ADVERT:AUCTIONS 4224 Activate - 1 April 2012PRJ ADVERT:AUCTIONS 4225 Activate - 1 April 2012

THE END

Thank You

Questions?

SCOA Contact Details:

Helpdesk: 012 315 5311

Email: scoa@treasury.gov.za

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

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