Dear Munsoft Client,
Kindly take note that National Treasury issued communication on Grant Expenditure Reporting for Quarter 1, please refer to communication attached.

mSCOA Quarter 1 Grant Reporting.pdf
The communication notifies that Grant Expenditure alignment to schedule reporting has been updated to be consistent with the reporting on the Annual Financial Statements where only “conditions met” are recognised as grant expenditure. This update is also necessary for in-year reporting to be in accordance with GRAP 23.
The new alignment allows for reporting of grants expenditure using Item Liabilities:Current Liabilities:Trade and Other Payable Non-exchange Transactions:Transfers and Subsidies Unspent:Operational or Capital Transferred to Revenue/Capital Expenditure to the Item Revenue and is recommended to be done on a monthly basis.
Please note that this update in alignment will result in grant expenditure being understated in Quarter 1 and municipalities can include a disclaimer in the Quarter 1 Expenditure sign off stipulating the update in alignment.
It is advised that the update to Grant Expenditure is done via a journal and be processed in the current open month, which should be Month 4(October 2021), this will ensure that Grant Expenditure is reported correct cumulatively.
For any queries please contact [email protected] or your respective Service Delivery Manager.
Kind Regards,

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