We are advocating to National Treasury on behalf of our clients by stating the following reasons why the 12 October 2018 deadline is not feasible:
1. The municipalities have transacted and reported for 3 months on possible incorrect strings for which they have budgeted for.
2. Budget needs to be re-allocated to the correct strings as if the ORGB was done correctly and in line with the A-Schedules, but by doing this will cause a few other major problems such as:
- The actuals needs to be moved - in order to avoid the over expenditure caused by this budget re-allocation. This exercise may cause a high volume of journals moving actuals for the incorrect string to the correct string.
- Approved and signed documentation from submodules are being circumvented if these entries are simply re-directed via a ledger journal
- By moving actuals and budget the original control posting of the incorrect transactions will be affected.
3.The VAT credentials of the original data string and corrected data string may not be the same. This can have implications on the SARS submissions.
4. The data integrity between the main and sub system as well as 3rd parties may be risked, with new setups being required.
Taking the above into consideration the Adjustment Budget period will be a good platform to affect these changes. Please take note that the adjustment budget module is already open for updates and adjustments to be performed.
Munsoft can assist with the reconciliation through the Adjustment budget process as follow:
- Identify data strings on budget causing the differences upon request
- Schedule N client – Assist client to move budget and actuals to correct data strings as per SLA
- Non schedule N client – Support to give guidance to municipality on how to move budget and actuals
If the stance of the municipality is to continue on the above process, we would require a signed letter from the CFO acknowledging the above consequences. Further to the above please consider the impact of the effected changes and further possible cost that could be incurred.