Upload
corey-greene
View
216
Download
0
Tags:
Embed Size (px)
Citation preview
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
Segment Segment description BAS segment code
Project (P) No Project stand alone current 16
Objective (O) Corporate Support 4110 – create PL
Fund (F) Voted funds 559
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
Segment Segment description BAS segment code
Project (P) No Project stand alone current 16
Objective (O) Other Facilities 2885 – create PL
Fund (F) Voted funds 559
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
Segment Segment description BAS segment code
Project (P) No Project stand alone current 16
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
Segment Segment description BAS segment code
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
Segment Segment description BAS segment code
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
Segment Segment description BAS segment code
Project (P) No project stand alone current 16
Objective (O) Financial Reporting 2397 – create PL
Fund (F) Voted funds 559
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
Segment Segment description BAS segment code
Project (P) Project not related to infrastructure capital 24 – create PL
Objective (O) Financial Reporting 2397 – create PL
Fund (F) Voted funds 559
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
Region (M) KZN whole of province 222
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
Segment Segment description BAS segment code
Project (P) No project stand alone capital 17
Objective (O) Financial Reporting 2397 – create PL
Fund (F) Voted funds 559
Item (I) Computer hardware and systems 2852
Asset (A) Computer hardware and systems 466 – create PL
Region (M) KZN whole of province 222
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
Segment Segment description BAS segment code
Project (P) No project stand alone current 16
Objective (O) Financial Reporting 2397 – create PL
Fund (F) Voted funds 559
Item (I) Software licenses 2626
Asset (A) Non assets related 31
Region (M) KZN whole of province 222
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
Segment Segment description BAS segment code
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
Segment Segment description BAS segment code
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
Asset (A) Non assets related 31
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
Segment Segment description BAS segment code
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