• Menu
  • Skip to primary navigation
  • Skip to secondary navigation
  • Skip to main content
  • Skip to primary sidebar

MyPE

Community News and Views from Port Elizabeth, Nelson Mandela Bay

Header Right

  • Home
  • About
    • MyPE Copyright Terms
    • Authors
    • Deals
  • Info
    • Accommodation
    • Classified Adverts
    • Directory
    • Essential PE Numbers
    • Flight Schedules
    • Forex Converter
    • PE’s Online Radio Stations
      • Algoa FM
      • Bay FM
      • iFM
      • Kingfisher FM
      • MannMade Radio
      • Madibaz Radio
      • Umhlobo Wenene
    • Shipping
    • Street Map
    • Tides
    • Ward Details
    • Weather
  • Contact
    • Advertising on MyPE
  • Submit
    • Blogger
    • 5 Quick PE Questions
    • Entertainment
    • Letter to the Editor
    • Lost and Found
    • Movers and Shakers
    • News Article
    • PE Videos
    • Photographs
    • Recipes
    • Traffic Hooligan
  • Photos
  • Events
    • Add your Port Elizabeth event
  • Free Ad
  • Say NO
  • Ward News
  • Podcasts
  • Accommodation
  • Advertising
  • Classifieds
  • Directory
  • Events
  • News
  • Newsletter
  • PE Videos
  • Home
  • About
    • MyPE Copyright Terms
    • Authors
    • Deals
  • Info
    • Accommodation
    • Classified Adverts
    • Directory
    • Essential PE Numbers
    • Flight Schedules
    • Forex Converter
    • PE’s Online Radio Stations
      • Algoa FM
      • Bay FM
      • iFM
      • Kingfisher FM
      • MannMade Radio
      • Madibaz Radio
      • Umhlobo Wenene
    • Shipping
    • Street Map
    • Tides
    • Ward Details
    • Weather
  • Contact
    • Advertising on MyPE
  • Submit
    • Blogger
    • 5 Quick PE Questions
    • Entertainment
    • Letter to the Editor
    • Lost and Found
    • Movers and Shakers
    • News Article
    • PE Videos
    • Photographs
    • Recipes
    • Traffic Hooligan
  • Photos
  • Events
    • Add your Port Elizabeth event
  • Free Ad
  • Say NO
  • Ward News
  • Podcasts
You are here: Home / Business / Forcing transparency and accountability in municipalities

Forcing transparency and accountability in municipalities

16 August 2017 By //  by Alan Straton Leave a Comment

On 1 July 2017, after approximately three years in development, all of South Africa’s 257 municipalities went live with a new standardised financial classification framework: the Municipal Standard Chart of Accounts (mSCOA). Sebata, a MICROmega Group company and the leading provider of integrated technology solutions and enterprise management solutions, developed the system capable of supporting it.

Before mSCOA, a chart of accounts in most municipalities was limited to item revenue (how funds were raised), expenditure (what funds were spent on), and cost centres (which departments were doing the raising/spending). There was also no standard methodology, so each municipality formulated its own structures and classifications – creating inconsistencies and raised flags regarding transparency, accountability and governance.

Many municipalities have also become dependent on funding from the National Budget, but their operations should instead be funded by revenue raised from property rates, electricity and water sales, refuse removal and sanitation charges, licensing, and building plan fees.

The new Sebata-supported mSCOA standardises the financial management processes of all 257 municipalities by incorporating best practices and forcing accountability through:

  • policy formulation,
  • budgeting,
  • service delivery implementation,
  • in-year reporting frameworks, and
  • annual reports and statements.

The standardisation of these processes provides the basis for significantly improved municipal reporting and will increase levels of transparency and governance; factors that will, it is hoped, lead to higher levels of municipal effectiveness.

The framework will also improve municipalities’ ability to raise revenue, manage spending, control leakages, and monitor performance, and the National Treasury will be better equipped to answer important questions like:

  • How much national revenue should be directed to municipalities?
  • How do electricity increases affect the sustainability of municipalities?
  • What is the extent of deferred maintenance on municipal infrastructure?
  • How does in-migration from rural areas impact on cities?
  • What is the extent of service delivery backlogs?
  • What funding is needed to address service delivery backlogs?

As with any change of this magnitude, Sebata has faced some challenges, especially regarding the sophisticated software development involved. Carl Stroud, MD of Sebata, says, “If I had to single out one challenge, it would be the change management associated with this reform, because of the impact it has on all stakeholders within local government.”

While Sebata’s implementation and migration methodologies incorporated all possible eventualities and necessary corrective measures, the company recognises that the bulk of the work is yet to come. “Our teams have tirelessly supported all our clients through this transition; however, it is anticipated that the full change management implications will continue over the medium to longer term”, says Stroud. “We look forward to meeting any challenges head on, with the same level of commitment shown by Sebata to date.”

The following two tabs change content below.
  • Bio
  • Latest Posts
My Twitter profileMy Facebook profileMy Google+ profileMy LinkedIn profileMy Flickr profileMy Pinterest profile

Alan Straton

Chief Cook, Bottle Washer and Broom Mechanic at MyPE
Passionate about Port Elizabeth and definitely NOT packing for Perth. Alan's ethos is epitomised in the words of Nelson Mandela; "I have fought against white domination and I have fought against black domination. I have cherished the idea of a democratic and free society. If need be, it is an ideal for which I am prepared to die." See more articles by Alan.
My Twitter profileMy Facebook profileMy Google+ profileMy LinkedIn profileMy Flickr profileMy Pinterest profile

Latest posts by Alan Straton (see all)

  • Not so Merry Christmas for these 35 - 13 December 2019
  • Dear KykDaar, BlyDaar - 13 December 2019
  • Just hanging around…. - 12 December 2019
  • Another War - 12 December 2019
  • 12 December’s Loadshedding Menu of Darkness – Stage 2 - 12 December 2019

Filed Under: Business Tagged With: accounts, financial, municipality, sebata

Previous Post: «MyPE Logo Mthatha news: Chiefs To The Rescue As They Bulk Up Bafana
Next Post: If the Cold Snap and 148.9 mm Rain fills our dams then Bring It On! »

Primary Sidebar

RSS Join the Conversation on MyPE

  • Re: Eskom
  • Re: 5 December 2019 Loadshedding Menu of Darkness – Stage 2
  • Re: 5 December 2019 Loadshedding Menu of Darkness – Stage 2
  • Re: MannMade Radio Goes Live with Daron Mann
  • Re: Why Eskom’s System Remains Vulnerable





Listen to Alan

Select a PE Interest

  • Most Viewed
  • Daron Mann Suspended - Should You Care Why?
  • ‘South African sides have started to embrace PRO14’ - Munster Rugby's Johann Van Graan -...
  • 16 October 2019's Loadshedding Menu of Darkness - Stage 2
  • MannMade Radio Goes Live with Daron Mann
  • MyPE Goes MannMade

News Search

Newsletter

Search MyPE By Day

August 2017
M T W T F S S
« Jul   Sep »
 123456
78910111213
14151617181920
21222324252627
28293031  

RSS My Press Releases

  • Is a career in biomedicine or biotechnology for you?
  • Major project to help alleviate PE and Gamtoos valley water supply
  • Inexperienced Madibaz keep A section spot in USSA tennis
  • Could your insurer reject your claim due to poor tyres?
  • Rockwell automation saves costs, simplifies sizing with new servo system
  • Accommodation
  • Advertising
  • Classifieds
  • Directory
  • Events
  • News
  • Newsletter
  • PE Videos

How you may use MyPE content © 2019 MyPE · Port Elizabeth, South Africa | Privacy Policy | MyPE Ads and Media Kit

Fun stuff from MyPE
We know you will like this:

Adversely affected by the Manganese Ore Dust? CLICK HERE.

CLICK HERE to give MyPE a Tip

OR - CLICK HERE to answer 5 quick questions!



Privacy Policy: We cherish your privacy and will never sell, lend or show your email address to anyone.
[close]
Brought to you by
Displet