mSCOA Budget Implementation support






With all municipalities and their respective municipal entities having to implement the Municipal Standard Chart of Accounts (mSCOA) as new classification framework for unified local government transactional information by 1 July 2017, there are still many practical implementation challenges facing local government in the time remaining. Due to mSCOA being a multi-dimensional chart which affects all business processes and the IT infrastructure (such as systems, programmes, data), the implementation of any mSCOA project is complex, requiring a comprehensive and clear project plan, diverse key skills & structures, steering committees & project management to ensure all milestones are achieved.

One of these key processes is the mSCOA Conversion Budget process, which is due by March 2017. Non-compliance with an mSCOA budget may result in administrative and compliance issues as well as subsequent actions (virements / condonements / irregular expenditure disclosures).

Please find herewith a link to our article to provide basic guidelines and considerations applicable for municipalities when compiling, adopting and implementing a mSCOA compliant budget:

  • Alignment of old COA and mSCOA short codes to be implemented
  • Set-Up of Municipal Projects as per IDP within mSCOA Budget Compilation Tool
  • Review of MSCOA compliance within Draft MTREF Budgets as compiled by Municipal Departments
  • Compilation of Budgeted Financial Position and Budgeted Cash Flow Statements
  • Review Tariff Setting of Municipality
  • Populate National Treasury Budget Returns

We can also provide support on the following:.

  • HIGH-LEVEL MSCOA ASSESSMENT FOR FINANCE DIVISION: We can assist with a high-level mSCOA assessments as well as practical support with compiling a high level mSCOA project plan or budget compilation plan, including conducting high level capacity and current state assessments. This will involve the evaluation and a gap-analysis on the mSCOA requirements and changes applicable to the finance division and it GRAP AFS reporting. Please also refer to our linked brochure setting out a high-level mSCOA self-assessment together with more details on our tailored facilitated mSCOA implementation assessment support (2 days / R29 000) (link attached).
  • IN HOUSE CAPACITY BUILDING WORKSHOP: In addition to our in-house mSCOA capacity building support, we can provide delegates with an understanding of mSCOA, the segments, the business processes and governance structures for implementation.

For more information on mSCOA services, please refer to: 

mSCOA capacity building support: 1 day course

We have developed an mSCOA Implementation manual. This was designed to assist municipal official to practically think through key foundational aspects that needs to be in place for mSCOA (e.g. project governance and change management) together with applicable examples and templates. The manual addresses:

  • Overview & Structures Includes mSCOA overview and key structures such as project steering committee, project management team & project governance
  • Systems & Capacity This focusses on business transformation, change management, skills development & information technology needed.
  • Practical impact on 15 business processes It deals with how MSCOA will affect the 15 business processes. For each business processes, a description of the process, accounting ramifications, impact of each of the segments and examples are provided
  • Compendium of mSCOA guidance We have also summarised and synthesised the guidance provided by National Treasury through the MSCOA circulars, Project Summary Documents, Transversal Tender RT- 25 as well as MFMA Circular 80.

We have developed a 1 day course to assist CFOs and their finance teams on the key issues impacting the finance division following the requirements of mSCOA. The course provides for a history and an overview of the importance of MSCOA as well as the various topics the CFO and finance teams will need to ensure are addressed for successful implementation. For inhouse training support, please contact us.


For more information


Sean Collins CA(SA) & (IMFO / CIGFARO Recognised mSCOA trainer) | 082 373 4428 scollins<at>

Anton Slabbert CA(SA) & (IMFO / CIGFARO Recognised mSCOA trainer) | 072 232 5335 aslabbert<at>

James Such | 076 402 6242 | jsuch<at>

Francois Conradie | 082 926 1780 | fconradie<at>