CaseWare Africa has launched its mSCOA template which will automate the process of complying with the National Treasury’s directive for municipalities to align their annual financial statements with the Municipal Standard Chart of Accounts.
National Treasury’s initiative is aimed at ensuring that municipal annual financial statements are standardised in order to facilitate seamless planning, budgeting and reporting using the same datasets, and that all the data complies with the Municipal Budget and Reporting Regulations (MBRR) and Generally Recognised Accounting Principles (GRAP).
This common dataset can then also be used when municipalities report to National Treasury and indirectly to Parliament.
“This initiative by National Treasury is to be welcomed because it will help ensure that there is ‘one version of the truth’ when it comes to municipal finances, and also that Treasury (and thus Parliament) is receiving audited figures drawn from the annual financial statements,” says Stephan van der Merwe CA (SA), Product Manager, CaseWare Africa, an AdaptIT company.
Mr Van der Merwe says that CaseWare Africa’s mSCOA template is based on the same technology used in our GRAP template which is currently in use by a wide range of users, including public entities, TVET colleges, trading accounts, traditional authorities, municipal entities and municipalities. The new mSCOA template will use the data derived from the reporting entity’s ERP system to populate the template, and then automate the production of annual financial statements that comply with the illustrative specimen issued by National Treasury on 29 July 2019.
The CaseWare mSCOA template will ensure that only the portions of the template applicable to the entity will be populated, and the software will automatically adjust pagination and references accordingly.
“Even more important, automation supports greater data integrity because the data values are drawn directly from the financial system, and cannot easily be adjusted. This greatly reduces risk both for the reporting entity and the National Treasury, which can now rely on getting audited figures that accurately reflect the reality on the ground,” he explains. “In true CaseWare style, mSCOA is taking a hugely complex process and making it both simple and user-friendly,” he concludes.
“By using CaseWare Africa’s mSCOA template, municipalities can comply much more easily with National Treasury’s directive and greatly improve their financial management, while reducing impact on their hard-pressed financial staff.”
About CaseWare Africa
CaseWare Africa, a division of Adapt IT, is the global leader in auditing and financial reporting software and is used in over 130 countries worldwide. Our 20 000 users across Africa, consist of audit and accounting firms, government entities, municipalities as well as large blue-chip companies.