The South African National Treasury Municipal Regulation has very recently announced about the company SAP’s tie up with local government in the spheres of the ecosystem on Standard Chart of Accounts Regulation (MSCOA). This comes as a most recent development for the company SAP and their main intent in doing this is to help the local South African government municipalities and in order to make it easy for the new regulatory and functions.
With this new regulation all the municipal processes which are applicable across South Africa will be standardized and all of this would be made possible by providing a national standard framework which will be utilized for the solve purpose of recording and the classification of municipal budget along with the critical financial information.
SAP (Systems, Applications, Products in Data Processing) intends to get aligned with the South African government by virtue of supporting the municipalities as well as the business community, for rolling out all the key initiatives. This would call for a very smooth and hiccup free transition from a technology perspective. The company is working very closely with South African customers and partners for evaluating the impact of the legislation.
As per Mehmood Khan, COO at SAP Africa "SAP’s extensive public sector experience with local governments across the globe has shaped a unique SAP Urban Matters program that is focused on citizen-centric efficient cities," commented Mehmood Khan, COO at SAP Africa. "SAP clearly has a keen understanding of local government municipalities and recognises they require more than just cutting edge technology to meet new regulations in today’s challenging economy. We look forward to working with government, our customers, our partners and you to enable this regulatory transition with the goal of making South African government even more efficient. We’ve already had initial workshops with the Metros to assess their understanding, preparation for MSCOA and their transition to the new regulation."
This new regulation is specifically meant for the municipalities and all of this is related to a multi-dimensional framework. This has been specifically framed out in such a manner that it assists the municipal managers and guides them to follow a suitable method which has been made specially available for them to meticulously record and classify all the financial and local municipal transactions along with all the relevant information.
As per the new regulations, there are only a handful of specifications specially designed for finance and related systems applications required before SCOA can be finally deployed.
Quite a few technology based implications are present, for instance the specifications of MSCOA indicate that the new system has to function specifically on a web-based integrated platform and for the application to successfully incorporate all important functions and processes of a municipality.
SAP is constantly in touch with the South African National Treasury regarding a detailed action plan which is related to go-live of SCOA at municipalities by 1st July 2017. All of this also encompasses the readiness levels for the fiscal year of 2017/18 and the fiscal year budgeting cycle which is expected to be complete by December 2016.