INVENTORY

Presenter: SCOA Technical Committee | National Treasury | March 2013

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BACKGROUND

• Pre 1 April 2013 SCOA consumables were a sub-category of inventory;

• Post 1 April 2013:

  INVENTORY CONSUMABLEKey Principle Goods that are essential for 

satisfying the service delivery obligation of a department. 

Goods that are not essential for satisfying the service delivery obligation of a department.

Reporting Expense in Statement of Financial PerformanceAnnexure 6

Expense in Statement of Financial Performance 

Management and Control

Required Required

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APPROACH

a) Searched the entire SCOA for items that meet the definition of inventory and consumables (e.g. items prev. in operating payments);

b) Split the old Inventory category into Consumables and Inventory category at the same level, and added relevant sub-categories;

c) Renamed duplicates – items that were inventory & consumables (Medicine and first aid kits);

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APPROACH

d) Identified categories that would be made available only to specific departments;

e) Operating Payments category caters for services that are related to the operations of the department

• The following items are goods thus removed from Operating Payments :

- Gifts

- Library Material

- Achievements and Awards

OLD VS NEW

Inventory categories on level 4 reporting

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High level items (old version level 4) High level items (new version level 4)1 INV:FOOD & FOOD SUPPLIES 1 INV:FOOD & FOOD SUPPLIES2 INV:FUEL, OIL AND GAS 2 INV:FUEL, OIL AND GAS3 INV:LEARN&TEACH SUPP MATE 3 INV:LEARN&TEACH SUPP MATE4 INV:MATERIALS & SUPPLIES 4 INV:MATERIALS & SUPPLIES5 INV:MEDICAL SUPPLIES 5 INV:MEDICAL SUPPLIES6 INV: MEDICINE 6 INV: MEDICINE7 MEDSAS INV INTERFACE 7 MEDSAS INV INTERFACE8 INV:MILITARY STORES

8 INV:FARMING SUPLIES9 INV:CLOTH MAT&ACCESSORIES

9 INVENTORY:OTH CONSUMBLES 10 INV:OTHER SUPPLIESINV:LABORATORY CHEM & SUPPLIESINV:MILITARY STORESINV:AMMUNITN & SECURITY SUPLIESINV:ASSTS FOR DSTR (new)

11 CONS SUPPLIES (new)10 INVENTORY:STATIONERY & PRINTING 12 CONS:STA,PRINT&OFF SUP

EXAMPLE DETAIL

• Reporting level four (4) categories• INV: CLOTHING MATERIAL & ACCESSORIES

Corporate Gear

Uniform and Protective Clothing

Needlework Accessories• INV: OTHER SUPPLIES

Laboratory Chemicals and Supplies

Military Stores

Ammunition and Security Supplies

Assets held for distribution

Printing Supplies - ID Books and Passports• CONS SUPPLIES

Gifts and Awards

Household Supplies

First Aid Kit

Bags and Accessories• CONS: STATIONERY, PRINT &OFFICE SUPPLIES

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SPECIFIC ITEMS FOR NOTING

– Ammunition and security supplies = inventory;

– LTSM = inventory;

– Wheelchairs = inventory if bought for distribution or sale, else asset if used in hospital / clinic;

– Assets bought for distribution = inventory e.g. school furniture, municipal dustbins, library materials;

– Medicine = inventory for some sectors, e.g. Health sector, and consumables for rest

INVENTORY

THANK YOU

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