1. What is a Chart of Accounts?
of Accounts (COA) is also known as a
General Ledger or a master list of
2. What is mSCOA?
SCOA is an acronym for a Standard Chart of Accounts which is a National reform that has been promulgated by Gazette No. 37577
dated 22 April 2014, called the Standard Chart of Accounts for Local
Government Regulations,2014. The "m” in the acronym distinguishes between a Municipal
Standard Chart of Accounts and a Provincial/National Standard Chart of
3. Who is affected by mSCOA?
The Regulation on mSCOA indicates that it affects all Municipalities
and their entities.
4. What is the purpose of mSCOA?
The introduction of a Standard Chart of Accounts for Municipalities (mSCOA), will , inter alia,:
Aid transparency; accountability and overall
governance in the daily; monthly and yearly activities of municipalities;
Aid the standardization of 278 different municipal ‘charts of accounts’
(COA ) ;
Improve the quality of municipal information that is compromised ,i.e.it
will introduce an uniform classification
of revenue and expenditure items ;
Enhance monitoring and oversight by Councils, DCoG, Treasuries and legislatures;
of information across Municipalities, i.e. Benchmarking, standards and measures
5. Will mSCOA affect my payment to /from the NMBM?
No, mSCOA will not affect any payment owed by you/to you.
Its aim is to standardise how all Municipalities classify their financial data,
i.e. it introduces a standardised classification of a Chart of Accounts (General
Ledger) across all Municipalities
6. What change(s) is expected of my company?
In order to facilitate the identification of which General Ledger posting account to use
when processing an Invoice from your company ,the Description on the Invoice
that is submitted to the NMBM for goods delivered/services rendered must be detailed
and accurate, i.e. do not use descriptions like "Services
Rendered/Miscellaneous Work done/Various,” etc. The exact description of what
goods were delivered or services rendered must appear on each Invoice.
7. Where can I view the Regulations on mSCOA ?
8. Where can I send further questions or comments to?