TABLE OF CONTENTS Asset life cycle Current challenges in the asset life cycle Associated benefits of mSCOA segments in the asset life cycle Other benefits of mSCOA Conclusion ASSET LIFE CYCLE ID: 698099
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ASSOCIATED BENEFITS OF mSCOA IN THE ASSET LIFE CYCLE
Slide2
TABLE OF CONTENTS
Asset life cycle
Current challenges in the asset life cycle
Associated benefits of mSCOA segments in the asset life cycle
Other benefits of mSCOA
ConclusionSlide3
ASSET LIFE CYCLE
Where requirements of a new asset are planned for & established. Resources are set aside
Where an asset is purchased, constructed or otherwise created
Where asset is used for its intended purpose & maintained
Initiated when economic life has diminished or the service provided by the
asset disappearsSlide4
4
ACCOUNTABILITY CYCLE &
mSCOA
The integrated development plan (unlimited needs and wants) must directly inform the formulation of the budget (limited basket of resources). In a
mSCOA
perspective, this requires budget formulation (as per the MBRR) from a project level. Consequently the Project Segment is consider the departure point in formulating budgets across all seven segments.
Budget, implementation
and
reporting
Budgets is consistent with IDP
Asset procurement plan consistent with 3 year budget.
Monitoring via SDBIP possible.
Ensure IYR balances
to asset
register and GL
accounts.
AFS
reporting will be consistent with sub ledger.
Accountability Reporting
Incorporation of GRAP
Improved standardisation
Improved audit process across 278
Consistent comparability
Transparency
Classification exist for :
Planned, WIP, In use, Held for disposal and Disposed in the GL.Perfect alignment to sub-system
Improved Service
Improved planning ensures better funding allocation.
Improved funding leads to improved service delivery at an operational level Slide5
THE CURRENT CHALLENGES IN THE ASSET LIFECYCLE
No proper planning in the acquisition of assets leading to poor service delivery due to the use of outdated or no assets;
Most municipalities do not specify assets & liabilities in projects and
are often
called "special
projects” or “Mayoral
Projects” and not
reflective to items that have been purchasedFunds allocated to Assets being expended in other activities e.g. operational cost;Sources of funding for assets not always clear;Ownership of assets in municipalities not clear;
Repairs & maintenance not adequately planned or accounted for;Asset registers not properly maintained;Slide6
THE CURRENT CHALLENGES IN THE ASSET
LIFECYCLE cont.…...
Incorrect classification of assets
;
Usage of assets not linked to the core functions of municipalities.Slide7
ASSOCIATED BENEFITS OF mSCOA IN SEGMENTSSlide8
TYPICAL APPLICATION OF mSCOA PROJECT SEGMENT
SCOA currently aligns the project segment and the fixed asset register at the asset sub-class level, and makes provision for additional breakdowns on both capital and maintenance expenditure.
Component level budgeting automatic aligns the IDP, MTREF, FAR and financial record
Adopted from
I@ConsultingSlide9
ASSOCIATED BENEFITS OF mSCOA IN SEGMENTSSlide10
ASSOCIATED BENEFITS OF mSCOA IN SEGMENTSSlide11
ASSOCIATED BENEFITS OF mSCOA IN SEGMENTSSlide12
ASSOCIATED BENEFITS OF mSCOA IN SEGMENTSSlide13
ASSOCIATED BENEFITS OF mSCOA IN SEGMENTSSlide14
OTHER BENEFITS OF mSCOASlide15
QUESTIONS
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