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?