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Advice on applying municipality reform under mSCOA

Overspending and underspending are common in the local government sphere and within municipalities.

However, the Municipal Regulations on a Standard Chart of Accounts (mSCOA) is a regulation that seeks to troubleshoot this budgeting challenge.

mSCOA is a standardised accounting system that aims to change how municipalities transact by standardising financial management processes through policy formulation, budgeting, in-year reporting frameworks and statements.

Speaking on POWER Business, an associate partner at Ntiyiso Consulting Maritz van Zyl explained how mSCOA is best applied.

With Ntiyiso mSCOA Consulting, the firm becomes a partner to the municipality in offering solutions for people, processes and technology.

People

Change Management related to mSCOAbusiness reform is critical to positive progress. The regulation is not a financial reform but an institutional reform.

  • Investment in municipal resources understanding the reform and what responsibility they play in this environment.
  • System related training in business changes made to municipal ERP System.
  • Selling the positive impact of the regulation to our municipal environment.

Process

  • Business Process Reengineering as per the 15 Key Business processes is required.
  • Integrity review of data string submissions based on the accountability cycle and make corrective recommendations.
  • Implementation Steercoms for new regulation like GRAP 12 (Water Inventory).
  • IT and process audit as per MFMA Circular 80 with recommendations to feed recovery plans.
  • Assist with credible data string submission as part of recovery plans to NT and PT and mitigate EQ delays.

Technology

  • Apply IT where appropriate.
  • Automate the integration of systems as per MFMA Circular 80 and make recommendations.
  • Mitigate shortfalls and implement with the municipality and municipal vendor the corrective solution.

Undoubtedly, this is the biggest reform since the inception of the MFMA.

It is Ntiyiso Consulting‘s opinion that the mSCOA reform is changing the landscape of the municipality and local government for the better.

Ntiyiso Consultinghttps://ntiyisoconsulting.co.za/
Founded in 2005, Ntiyiso Consulting is a fast growing authentically African and globally wired management consulting firm that seeks to empower institutions that enable Africa’s development. Ntiyiso Consulting helps improve cash positions of large and medium sized municipalities; turnaround or improve the revenue, profitability or social mandate profitability or social mandate performance of large and medium organizations; and unlock economic opportunities on behalf of communities & regions.

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