AUDIT & RISK INDABA Alignment of Performance Management, Risk Management and Internal Audit in municipalities to new reforms: m. SCOA Presented by National Treasury: Chief Directorate Local Government Budget Analysis – 20 June 2017
2 Overview of the seven (7) m. SCOA Segments: Municipal Standard Classification: Maintains the current reporting structure to accommodate unique organisational arrangements. Project: Ensures that all projects (Capital & Operational) in the IDP are aligned to the budget, SDBIP, transacting, reporting and performance management. Costing: Allows for cost allocations, tariff calculation and improved management of scarce resources. Region: Indicates the geographical area which is deriving the benefit from a transaction, or contributing financially. Allows for strategic management and improved planning and resource allocation. Function: Enforces regulatory framework: Constitution, IMF, GFS classification, Municipal Structures & Systems Acts. Item: Enables transacting, the traditional financial reporting and reconciliations – preparation of annual financial statements. Fund: Aligns Revenue and Expenditure, in essence creating cash flow management.
m. SCOA seamless integration
m. SCOA – Performance Management, Risk Management and Internal Audit ? Not really been involved in the reform? Not sure of the contribution to be made? Not really affected by the project implementation? Not sure what should or can be done? m. SCOA is an Organisation wide reform, affecting all Financial Management and Internal Control Systems: • Performance management – Planning, leading, managing and reporting on municipal service delivery objectives. • Risk management – Identifying, evaluating, managing, and reporting on risk which could impact on municipal service delivery. • Internal audit – Management support providing review and assurance of municipal service delivery.
m. SCOA –Performance Management, Risk Management and Internal Audit What remains to be done in your municipality to ensure: m. SCOA compliance by 1 July 2017? To do list: 1. Do you know your real current status? 2. Do you know what still needs to be done? 3. Prepare a plan to address shortcomings. 4. Obtain buy-in/ approval. 5. Implement. 6. Review and repeat.
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Thank you for the opportunity to discuss m. SCOA alignment with you
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