Dear Munsoft Client,
We would like to inform you of the mSCOA Circular No. 10 – Cash Flow – 14 October 2020 that was issued by National Treasury.
Munsoft worked through the detail of the Circular and identified the following list of items to take note of:
- Updates to current Cash Flow Supporting Annexure SA30 alignment:
- Interest earned from Outstanding Debtors will no longer be reported on SA30 as this is not an actual cash transaction
- Item Liability: Current Liability: Trade and other Payable Exchange Transactions: Auditor General: Withdrawals added to “Other Expenditure”
- Item Liability Defined Benefit obligations added to “Employee Related Costs”
- Cash Flow challenges to be addressed in mSCOA Chart version 6.5:
- Unallocated Deposits are not reported on the Cash Flow Statement especially the Cash Flow of monthly C-Schedules
- Duplication of Capital Assets in the payments section
- Construction Work-In-Progress is not reported as Capital Assets in Schedule A9
- Contracted Services to be excluded from trade payables and accruals and reported separately on the payments section
The Circular provides guidelines to the use of the Fund Segment for Cash Flow purposes:
- The Circular:
- Operational and Capital Funds should only be used for actual cash transaction data strings
- Non-Funding transactions include Billing for services, Recording of invoices, Depreciation, and Debt Provision
- We at Munsoft have a different view on the use of the Funding segment:
- Munsoft is of the opinion that Operational and Capital Funds should be used for all types of transactions as this allows for in-depth analysis to be performed per Fund
- The Cash Flow mapping guideline allows for the funding segment to be used for all types of transactions and only the actual cash transactions to reflect on the Cash Flow Statement
Munsoft will respond to National Treasury on the mSCOA Circular No. 10 issued to raise our comments and proposals on how to address the ongoing Cash Flow challenges.
For more details on mSCOA Circular No. 10 visit the National Treasury website, or click on the below link.
mSCOA Circular No. 10 - Cash flow - 14 Oct 2020 (Final)
We would like to assure all our clients that we at Munsoft work tirelessly to update our system functionalities to include all the most recent updates to the A1 Schedule alignment and especially the Cash Flow Statement. Munsoft appreciates all the feedback received from clients regarding the Cash Flow statement and we will continue to debate the Cash Flow challenges by taking all stakeholder’s interests into account.
If you have any queries or require training on any system modules please contact your respective Service Delivery Manager who will gladly assist you.