Dear Client,
Munsoft would like to provide assistance with the A Schedule reconciliations
Situation:
The 2018/19 Final budget data strings submitted by some municipalities not aligning to the Council approved A Schedule.
Source of current situation:
Municipalities captured and completed their A Schedule documents manually and not through the correct systems before they submitted for approval by the Council.
The reasons for municipalities capturing their A Schedule manually are:
- The budgeting process can be tedious as many factors need to be taken into consideration when a data string is captured
- There are many people involved during the budget process which poses as a challenge for the municipality to complete the A Schedule in due time
Challenges that transpired during reconciliation process:
- The differences can be identified, but to move the amounts between data strings requires municipality intervention
- The A7 cash flow statement amounts captured manually does make it difficult to interpret how the amounts are calculated and how they relate to other financial reports
- The A6 statement of financial position should contain projected opening balances, but due to the complexity and skills required the figures are not always available
- The 2018/19 final budget module has already been closed for the relevant changes to be made to relate to the A Schedule, will require the module to be re-opened
- This is technically possible however there are a number of steps that are essential to ensure accuracy for successful submission. The users might need additional guidance from Munsoft to ensure that errors are not made.
- 2019 Financial period actual transactions have already been processed on the incorrect budget data strings, the movement of budget amounts to different strings will result in the actual amounts also to be transferred
- There are some cases where an incorrect budget string should be split between multiple budget strings, and to allocate the actual amounts already processed, this can result in subjective allocation
Recommendation:
We recommend that the municipality should make the correction of the differences between the 2018/19 Data strings and the A Schedule during the adjustment budget process.
The correction of differences should address the A2, A4, A5 and A9 sheets of the A1 Schedule.
The amounts included and mapping of sheets A6 and A7 will need to be clarified and confirmed and comply with National Treasury requirements.
The municipality should first clear all differences between the 2018/19 ORGB and the A Schedule, thereafter the B Schedule can be completed for the adjustment budget.
Your input and conclusion on the way forward will be highly valued.
If you have any queries, please contact Munsoft Consulting ([email protected])
Kind Regards
Munsoft
