Munsoft Matters: NT Vendor Engagement - Cash Flow Management and Financial Period Control

Dear Munsoft Client,
Munsoft was recently invited to a meeting with National Treasury and Provincial Treasuries to present on the following:

  • Cash Flow Management
  • Cash Flow Statement alignment from data strings
  • Monthly and Period 13,14,15 transacting and closures
  • Dashboards
From the meeting, it was evident that National and Provincial Treasuries were satisfied with the system capabilities for the topics presented and our proposals for the remaining Cash Flow Statement alignment challenges were well received.

The Cash Flow Statement alignment challenges will be addressed in a phased approach. A set of updates were made for the 2021 Adjustments Budget in February and the remaining challenges will be addressed in the 6.5 Chart for the 2021/2022 MTREF.
The first set of updates to the Cash Flow Statement will include:
  • Interest earned from Receivables will no longer be reported in the Cash Flow Statement
  • The payments section will look at the funding segment as well to determine if it is operational or capital expenditure, this will resolve the issue of Capital Asset payments being duplicated
  • The fund segment to be utilised as per the guidance provided in Circular No. 10.  
    • Munsoft indicated in previous communication that we promote using the fund segment for all types of transactions including billing and invoicing and not only for Cash transactions as indicated in Circular No. 10. 
    • Munsoft presented to National and Provincial Treasury the analysis possibilities when the fund segment is used for all type of transactions and that the alignment to the Cash Flow Statement will remain the same, this was well received in the meeting and it was confirmed that the fund segment can be used as proposed by Munsoft for budgeting and transacting in the next financial year.
    • At the end of the next financial year, the guidance on the Fund segment will be reviewed and any further updates will be communicated.
The challenges addressed in the 6.5 Chart will be communicated once the Chart is finalised and available, which is planned for December 2020.

Click here to download the complete version of the below documents: 
mSCOA Circular No. 10 - Cash flow - 14 Oct 2020 (Final)
V6.5 Chart Changes - 12 Nov 2020

If there are any questions regarding the topics presented or training required on specific modules please get in contact with your respective Service Delivery Manager who will gladly assist.

Thank you,
Munsoft Team

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