Transcript Script Presentations - Session 13

SESSION 13
SUMMARISING THE SEGMENTS
OF THE CHART
PRESENTED BY: NATIONAL TREASURY
1
EXAMPLE 1
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?
2
ANSWER EXAMPLE 1
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 1871
services: Security services
Asset (A)
Non assets related
31
Region (M)
North West Whole of Province
89
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EXAMPLE 2
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?
4
ANSWER EXAMPLE 2
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 1756
expenditure: Safeguarding and
security services
Asset (A)
Office buildings
248 – create PL
Region (M)
North West Whole of Province
89
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EXAMPLE 3
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 vehicle
b) Cleaning of the nurses and doctors theater jackets
c) Payment to the monthly contracted firm “Clean a
mop” for the cleaning of the office building
d) Laundromat for the cleaning of the boardroom’s
curtains of the office building
6
ANSWER EXAMPLE 3
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
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EXAMPLE 4
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?
8
ANSWER EXAMPLE 4
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 447 – create PL
domestic
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EXAMPLE 5
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?
10
ANSWER EXAMPLE 5
Segment
Segment description
BAS segment code
Project (P)
Project
infrastructure: 8 – create PL
Refurbishment and rehabilitation
capital
Objective (O)
Construction
3676 – create PL
Fund (F)
Donor funds: Botswana
130 – create PL
Item (I)
Contractors: Rehabilitation and 2899
upgrade other assets
Asset (A)
Provincial roads tar
223 – create PL
Region (M)
Waterberg municipalities all
429 – create PL
11
EXAMPLE 6
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 bricks
b) Purification equipment worth R20 000 a piece
c) Professional service of a structural engineer
How should all of the above be classified in the financial
system?
12
ANSWER EXAMPLE 6
Segment
Segment description
BAS segment code
Project (P)
Project new infrastructure capital
4 – create PL
Objective (O)
Infrastructure
Rehabilitation
Fund (F)
Bulk infrastructure: Indirect Grant
362 – create PL
Item (I)
Salaries and wages: Basic salaries
Employer contributions: Medical
Employer contributions: Pensions
(a)Inventory:
materials
and
supplies:
Building and construction materials
(b)Pump/plumb/purification/sanitation
equipment
(c)Consultants and professional services:
Engineer structural
474
495
497
(a)2877 – create PL
(b)2589
(c)2421
Asset (A)
Water dams
186 – create PL
Region (M)
Zululand municipalities all
420 – create PL
Development
and
84 – create PL
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EXAMPLE 7(a)
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.
14
ANSWER EXAMPLE 7 (a)
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 2885
intangible assets
Asset (A)
Assets <R5000 software and other 501 – create PL
intangible assets
Region (M)
KZN whole of province
222
15
EXAMPLE 7(b)
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.
16
ANSWER EXAMPLE 7 (b)
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 development
Consultants: Advisory services project
management
Salaries and wages: Basic Salary
Overtime
Inventory Materials and supplies: Electrical
supplies
Inventory Stationary and Printing: Computer
consumables
Computer hardware and systems
Computer equipment <R5000: Computer
hardware and systems
2429
2810
474
479
1843
1764
2852
2847
Asset (A)
Intangible assets/Software
capital assets
35 – create PL
Region (M)
KZN whole of province
and
intangible
222
17
EXAMPLE 7(c)
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.
18
ANSWER EXAMPLE 7 (c)
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
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EXAMPLE 7(d)
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.
20
ANSWER EXAMPLE 7 (d)
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
21
EXAMPLE 8
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?
22
ANSWER EXAMPLE 8
Segment
Segment description
BAS segment code
Project (P)
Projects on existing infrastructure 6 – create PL
assets:
Maintenance
and
repairs current
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
23
EXAMPLE 9
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?
24
ANSWER EXAMPLE 9
Segment
Segment description
BAS segment code
Project (P)
No
projects
stand
transfers capital
Objective (O)
Integrated Housing and Human 271 – create PL
Settlement Development Grant
Fund (F)
Conditional
grants
national 348
housing: Integrated Housing
and
Human
Settlement
Development Grant
Item (I)
Transfers and subsidies
provincial conditional grants
2358
Asset (A)
Non assets related
31
Region (M)
Western Cape whole of province 51
alone 19
25
EXAMPLE 10
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?
26
ANSWER EXAMPLE 10
Segment
Segment description
Project (P)
No projects non expenditure stand 36
alone revenue
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
identifier
BAS
code
no
segment
regional 5
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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
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