1 SESSION 13 SUMMARISING THE SEGMENTS OF THE CHART PRESENTED BY: NATIONAL TREASURY.

1

SESSION 13SUMMARISING THE SEGMENTS

OF THE CHARTPRESENTED BY: NATIONAL TREASURY

2

The Premiers Office North West Province outsources the personal security and bodyguard services for the MEC to Securicor 4. The monthly contract fees is budgeted for under voted funds, programme 1, Administration and subprogramme 1, Premier Support and amounts to R20 000 per month. The MEC serves the whole of the province. How should this payment be classified in the financial system?

EXAMPLE 1

3

Segment Segment description BAS segment code

Project (P) No Project stand alone current 16

Objective (O) Premier Support 4110 – create PL

Fund (F) Voted funds 559

Item (I) Agency support and outsourced services: Security services

1871

Asset (A) Non assets related 31

Region (M) North West Whole of Province 89

ANSWER EXAMPLE 1

4

The department of Transport and Community Safety in the North West Province outsources the security services of the building that they rent on a monthly basis to Maxicor security services. The monthly contract fees is budgeted for under voted funds, programme 1, Administration and subprogramme 3, Corporate Support and amounts to R35 000 per month. The department of Transport and Community Safety serves the whole of the province. How should this payment be classified in the financial system?

EXAMPLE 2

5



Objective (O) Corporate Support 4110 – create PL


Item (I) Owned and leasehold property expenditure: Safeguarding and security services

1756

Asset (A) Office buildings 248 – create PL

Region (M) North West Whole of Province 89

ANSWER EXAMPLE 2

6

The Provincial Department of Health Gauteng receives invoices for the following services and pays it from voted funds under programme 8, Health Facility Management and subprogramme 6, Other Facilities. The Provincial Department of Health Gauteng serves the whole of the province. How should these payments be classified in the financial system?a) Squeaky clean carwash for the cleaning and valet of the MEC Health’s Official vehicleb) Cleaning of the nurses and doctors theater jacketsc) Payment to the monthly contracted firm “Clean a mop” for the cleaning of the office buildingd) Laundromat for the cleaning of the boardroom’s curtains of the office building

EXAMPLE 3

7



Objective (O) Other Facilities 2885 – create PL


Item (I) (a) Operating expenditure: Car valet and wash services(b) Operating expenditure: Laundry services(c) Owned and leasehold property expenditure: Cleaning services(d) Owned and leasehold property expenditure: Laundry services

(a) 2905(b) 2904(c) 2815(d) 1753

Asset (A) (a)Non assets related(b)Non assets related(c)Office buildings(d)Office buildings

(a)31(b)31(c)248 – create PL(d)248 – create PL

Region (M) Gauteng Whole of Province 297

ANSWER EXAMPLE 3

8

The National Department of Social Development rent a photocopier from Nashua through tender NT03/2004 and this contract qualifies as an operating lease. The Photocopier is used by the unit who administrates the Social Relief Fund. The amounts for the Social Relief Fund are all appropriated as specifically and exclusively in the appropriation act. Programme 2, Comprehensive Social Security and subprogramme 8, Administration is used to record the spending. The service provider is Gauteng based. How should this payment be classified in the financial system?

EXAMPLE 4

9



Objective (O) Administration 540 – create PL

Fund (F) Social Relief Fund 638

Item (I) Lease payments 1758

Asset (A) Office equipment 472 – create PL

Region (M) National functions: Whole country domestic

447 – create PL

ANSWER EXAMPLE 4

10

The Limpopo Department of Roads and Transport makes a payment of R80 000 to GROUP 5 which is an outsourced contractor in relation to a contract to rehabilitate the R518 provincial tar road between Lephalale and Mookgopong. The R518 is valued at R500 000 and is used by all the Waterberg municipalities. The road is an existing piece of infrastructure and is classified as a provincial asset. Spending take place through programme 2, Roads and Infrastructure and the subprogramme 4, Construction. Funding for this project has been provided by the Government of Botswana as part of donor funding. How should this payment be classified in the financial system?

EXAMPLE 5

11


Project (P) Project infrastructure: Refurbishment and rehabilitation capital

8 – create PL

Objective (O) Construction 3676 – create PL

Fund (F) Donor funds: Botswana 130 – create PL

Item (I) Contractors: Rehabilitation and upgrade other assets

2899

Asset (A) Provincial roads tar 223 – create PL

Region (M) Waterberg municipalities all 429 – create PL

ANSWER EXAMPLE 5

12

The department of Water Affairs is constructing a water dam on own account to serve all the Zululand municipalities. The amounts are specifically and exclusively appropriated for in the appropriation act under Bulk Infrastructure: Indirect Grant. Spending will take place against programme 2, Water Resources Management and subprogramme 13, Infrastructure Development and Rehabilitation. The Department is using of its own employees for the construction and project management. The department also purchases the following goods and services into the project: a) Cement and bricksb) Purification equipment worth R20 000 a piecec) Professional service of a structural engineerHow should all of the above be classified in the financial system?

EXAMPLE 6

13


Project (P) Project new infrastructure capital 4 – create PL

Objective (O) Infrastructure Development and Rehabilitation

84 – create PL

Fund (F) Bulk infrastructure: Indirect Grant 362 – create PL

Item (I) Salaries and wages: Basic salariesEmployer contributions: MedicalEmployer contributions: Pensions(a)Inventory: materials and supplies: Building and construction materials(b)Pump/plumb/purification/sanitation equipment(c)Consultants and professional services: Engineer structural

474495497(a)2877 – create PL(b)2589(c)2421

Asset (A) Water dams 186 – create PL

Region (M) Zululand municipalities all 420 – create PL

ANSWER EXAMPLE 6

14

The following transaction is funded from voted funds in programme 3, Financial Management subprogramme 4, Financial Reporting in the Provincial Treasury Kwa-Zulu Natal. The Provincial Treasury is serving the whole of the province.a) Purchase a Microsoft Office package having a useful life of more than one year, for a new post created in the financial section for R1000.

EXAMPLE 7(a)

15


Project (P) No project stand alone current 16

Objective (O) Financial Reporting 2397 – create PL


Item (I) Assets <R5000 software and other intangible assets

2885

Asset (A) Assets <R5000 software and other intangible assets

501 – create PL

Region (M) KZN whole of province 222

ANSWER EXAMPLE 7 (a)

16

The following transaction is funded from voted funds in programme 3, Financial Management subprogramme 4, Financial Reporting in the Provincial Treasury Kwa-Zulu Natal. The Provincial Treasury is serving the whole of the province.b) The Provincial Treasury have plans to develop and implement a sub system that will manage their guarantees issued, the system is customised for the needs for the use by the Provincial Treasury only, the system will qualify as an intangible asset in the books of the department. The project is set out on tender and awarded to private contractors. Employees employed by the department will assist on a full time basis with the implementation and maintenance of the system.

EXAMPLE 7(b)

17


Project (P) Project not related to infrastructure capital 24 – create PL



Item (I) Various items can be used for the different types of payments relating to the project – for example:Ext comp services: System developmentConsultants: Advisory services project managementSalaries and wages: Basic SalaryOvertimeInventory Materials and supplies: Electrical suppliesInventory Stationary and Printing: Computer consumablesComputer hardware and systemsComputer equipment <R5000: Computer hardware and systems

242928104744791843176428522847

Asset (A) Intangible assets/Software and intangible capital assets

35 – create PL


ANSWER EXAMPLE 7 (b)

18

The following transaction is funded from voted funds in programme 3, Financial Management subprogramme 4, Financial Reporting in the Provincial Treasury Kwa-Zulu Natal. The Provincial Treasury is serving the whole of province.c) A new computer (R7000) with enabling software (R3000) is purchased for the Director of Finance.

EXAMPLE 7(c)

19


Project (P) No project stand alone capital 17



Item (I) Computer hardware and systems 2852

Asset (A) Computer hardware and systems 466 – create PL


ANSWER EXAMPLE 7 (c)

20

The following transaction is funded from voted funds in programme 3, Financial Management subprogramme 4, Financial Reporting in the Provincial Treasury Kwa-Zulu Natal. The Provincial Treasury is serving the whole of the province.d) An annual license fee of R500 is paid for the upgrade of the excel package for the new post created in the financial management unit.

EXAMPLE 7(d)

21


Project (P) No project stand alone current 16



Item (I) Software licenses 2626



ANSWER EXAMPLE 7 (d)

22

The department of Education in the Eastern Cape outsourced the painting of the Theron primary school building in the Port St Johns municipal area to a private construction company. The total cost of the project is R5 million for a school valued at R500 million and belongs to the Department of Education, which therefore implies a current maintenance project. The spending of this project will be funded from donor funding received from the Danish Government and will be recorded in programme 4, Public Special Schools and subprogramme 1, Schools. How should this payment be classified in the financial system?

EXAMPLE 8

23


Project (P) Projects on existing infrastructure assets: Maintenance and repairs current

6 – create PL

Objective (O) Schools 3547 – create PL

Fund (F) Donor funds: Danish 104 – create PL

Item (I) Owned and leasehold property expense: Contracted property maintenance and repairs

2880 – create PL

Asset (A) Schools old 271 – create PL

Region (M) Port St Johns 364 – create PL

ANSWER EXAMPLE 8

24

The National Department of Housing pays a conditional grant of R8 mil to the Western Cape Department of Housing. Funds are appropriated in the appropriation act and the Division of Revenue Act as conditional grants. The transaction will be recorded on programme 4, Housing Development Finance and subprogramme 6, Integrated Housing and Human Settlement Development Grant. How should this payment be classified in the financial system?

EXAMPLE 9

25


Project (P) No projects stand alone transfers capital

19

Objective (O) Integrated Housing and Human Settlement Development Grant

271 – create PL

Fund (F) Conditional grants national housing: Integrated Housing and Human Settlement Development Grant

348

Item (I) Transfers and subsidies provincial conditional grants

2358


Region (M) Western Cape whole of province 51

ANSWER EXAMPLE 9

26

The Department of Public Works in the Free State sold an old office building at an auction. How will the revenue be allocated in the books of the department?

EXAMPLE 10

27


Project (P) No projects non expenditure stand alone revenue

36

Objective (O) Revenue objective 3604

Fund (F) Departmental revenue 297

Item (I) Sale of capital assets 788

Asset (A) Office buildings 248 – Create PL

Region (M) Non expenditure no regional identifier 5

ANSWER EXAMPLE 10

28

For any additional questions or issues for clarification, please contact the National Treasury

SCOA Technical Committee at:

• Call centre: (012) 315 5311

• E-mail: [email protected]

• Website: http://scoa.treasury.gov.za

1 SESSION 13 SUMMARISING THE SEGMENTS OF THE CHART PRESENTED BY: NATIONAL TREASURY.

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Transcript of 1 SESSION 13 SUMMARISING THE SEGMENTS OF THE CHART PRESENTED BY: NATIONAL TREASURY.