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Assessing the effectiveness of municipal standard chart of accounts implementation : a case study of two low-capacity North West Province municipalities
Thesis (MCom)--Stellenbosch University, 2024.
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Stellenbosch : Stellenbosch University
2025
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| _version_ | 1867614130038374400 |
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| access_status_str | Open Access |
| author | Moloto, Morufa |
| author2 | Ajam, Tania |
| author_browse | Ajam, Tania Moloto, Morufa |
| author_facet | Ajam, Tania Moloto, Morufa |
| author_sort | Moloto, Morufa |
| collection | Thesis |
| dc_rights_str_mv | Stellenbosch University |
| description | Thesis (MCom)--Stellenbosch University, 2024. |
| format | Thesis |
| id | oai:scholar.sun.ac.za:10019.1/131843 |
| institution | Stellenbosch University (South Africa) |
| last_indexed | 2026-06-10T12:47:08.513Z |
| license_str | Other — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from SUNScholar — Stellenbosch University Repository |
| publishDate | 2025 |
| publishDateRange | 2025 |
| publishDateSort | 2025 |
| publisher | Stellenbosch : Stellenbosch University |
| publisherStr | Stellenbosch : Stellenbosch University |
| record_format | dspace |
| source_str | SUNScholar — Stellenbosch University Repository |
| spelling | oai:scholar.sun.ac.za:10019.1/131843 Assessing the effectiveness of municipal standard chart of accounts implementation : a case study of two low-capacity North West Province municipalities Moloto, Morufa Ajam, Tania Stellenbosch University. Faculty of Economic and Management Sciences. School of Public Leadership Municipal finance -- Law and legislation -- South Africa Municipal finance -- Management -- South Africa Government spending policy -- South Africa UCTD Thesis (MCom)--Stellenbosch University, 2024. ENGLISH SUMMARY: This study assesses the effectiveness of the implementation of the municipal standard chart of accounts (mSCOA) in South African municipalities. Two category B municipalities in the North West province were used as case studies. The Municipal Finance Management Act 53 of 2003 (MFMA) places emphasis on enhancing the quality of information to improve the relevance of financial reporting by municipalities. The Constitution of the Republic of South Africa (1996) provides that national legislation must prescribe measures to ensure transparency and expenditure control in each sphere of government by introducing generally recognised accounting practice (GRAP), uniform expenditure classifications, and uniform treasury norms and standards. The most recent reform introduced is the mSCOA which came into effect on 1 July 2017. The reform requires that there be a uniform and standardised financial transaction classification framework. This means that mSCOA prescribes the method (the how) and format (the look) that municipalities and their entities should use to record and classify all expenditure (capital and operating), revenue, assets, liabilities, equity, policy outcomes and legislative reporting. Phenomenology is the research paradigm adopted in this study. A total of sixteen (16) participants were selected through purposive sampling to participate in the study. Data was collected through semi-structured interviews. Thematic analysis was used to analyse the data, using the inductive approach. The knowledge of the objectives of mSCOA by the participants was the limitation of the study. Participant responses are limited to the level of involvement in the project implementation. The study found that, despite the requirements of mSCOA, municipalities in the case study are not mSCOA compliant as not all business processes have been implemented due to challenges ranging from budgetary constraints to human capital capacity challenges. Furthermore, lack of capacity contributed to the system vendors not being able to implement the (7) seven minimum business processes. The increase in the amount of unauthorised expenditure for the municipalities in the study between 2019/20 and 2020/21 financial years suggests that municipal officials are not budgeting, transacting and reporting in alignment with mSCOA. Therefore, the controls built into the mSCOA system, which are aimed at preventing overspending on a vote, can be overridden. The constant version updates of the chart of accounts by National Treasury continue to put financial burdens on municipalities. The mSCOA implementation should be regarded as a continuous learning process to ensure that all stakeholders tasked with implementation are conversant with the objectives and requirements of a complaint mSCOA system. Also, the National Treasury should implement more effective change management as an integral part of any project. AFRIKAANSE OPSOMMING: Hierdie studie evalueer die effektiwiteit van die implementering van die Munisipale Standaard-tabel van Rekeninge in Suid-Afrikaanse munisipaliteite. Twee kategorie B munisipaliteite in die Noordwes-provinsie is as gevallestudies gebruik. Die Wet op Munisipale Finansiele Bestuur Wet 53 van 2003 beklemtoon die kwaliteitsverbetering van inligting om die toepaslikheid van finansiele verslagdoening deur munisipaliteite te verhoog. Die Grondwet van die Republiek van Suid-Afrika (1996) bepaal dat nasionale wetgewing maatreels moet voorskryf om deursigtigheid en uitgawebeheer in elke sfeer van die regering te verseker deur Algemeen Erkende Rekenkundige Praktyk (AERP), uniforme indeling van uitgawes, en uniforme tesourie norme en standaarde in te stel. Die Munisipale Standaard-tabel van Rekeninge is die mees onlangse hervorming wat ingestel is, wat op 1 Julie 2017 in werking getree het. Die hervorming vereis 'n uniforme en gestandaardiseerde finansiële indeling-raamwerk. Dit beteken dat die Munisipale Standaard-tabel van Rekeninge voorskryf op watter wyse (die hoe) en in watter formaat (die voorkoms) munisipaliteite en hul entiteite alle uitgawes (kapitaal en operasioneel), inkomste, bates, verpligtinge, ekwiteit, beleidsuitkomste en wetgewende verslagdoening moet opneem en klassifiseer. Die navorsingsparadigma wat in hierdie studie gebruik word, is fenomenologie. 'n Totaal van sestien (16) deelnemers is deur middel van doelgerigte steekproefneming gekies om aan die studie deel te neem. Data is ingesamel deur middel van semi-gestruktureerde onderhoude. Tematiese analise is gebruik om die data te analiseer, met behulp van die induktiewe benadering. Die deelnemers het nie kennis gehad van die doelwitte van Munisipale Standaard-tabel van Rekeninge nie, en daarom was hul reaksies beperk tot hul betrokkenheid by Munisipale Standaard-tabel van Rekeninge implementering. Die studie het bevind dat, ten spyte van die vereistes van die Munisipale Standaard-tabel van Rekeninge, die munisipaliteite in die gevallestudie nie voldoen aan die Munisipale Standaard-tabel van Rekeninge nie, omdat nie alle besigheidsprosesse geïmplementeer is nie as gevolg van uitdagings wat wissel van begrotingsbeperkings tot menslike kapitaal kapasiteitsuitdagings. Verder het 'n gebrek aan kapasiteit daartoe bygedra dat die stelselverskaffers nie in staat was om die (7) sewe minimum besigheidsprosesse te implementeer nie. Die toename in die hoeveelheid ongemagtigde uitgawes vir die munisipaliteite in die studie tussen die 2019/20 en 2020/21 finansiële jare suggereer dat munisipale amptenare versuim om te begroot, transaksies te doen en te rapporteer in ooreenstemming met die Munisipale Standaard-tabel van Rekeninge. Dus blyk dit dat die beheerstelsels wat in die Munisipale Standaard-tabel van Rekeninge-sisteem ingebou is om oorspandering op 'n stem te voorkom, omvergewerp kan word. Die Nasionale Tesourie se konstante weergawe opdaterings van die grootboek plaas steeds finansiele laste op munisipaliteite. Die implementering van die Munisipale Standaard-tabel van Rekeninge moet beskou word as 'n voortdurende leerproses om ten einde te verseker dat alle belanghebbendes wat belas is met die implementering daarvan, vertroud is met die doelwitte en vereistes van 'n voldoende Munisipale Standaard-tabel van Rekeninge-sisteem. Verder moet die Nasionale Tesourie meer effektief veranderingsbestuur implementeer as 'n integrale deel van enige projek. Masters 2025-04-02T13:36:32Z 2025-04-02T13:36:32Z 2024-12 Thesis https://scholar.sun.ac.za/handle/10019.1/131843 Stellenbosch University xvi, 118 pages : illustrations, includes annexures application/pdf Stellenbosch : Stellenbosch University |
| spellingShingle | Municipal finance -- Law and legislation -- South Africa Municipal finance -- Management -- South Africa Government spending policy -- South Africa UCTD Moloto, Morufa Assessing the effectiveness of municipal standard chart of accounts implementation : a case study of two low-capacity North West Province municipalities |
| title | Assessing the effectiveness of municipal standard chart of accounts implementation : a case study of two low-capacity North West Province municipalities |
| title_full | Assessing the effectiveness of municipal standard chart of accounts implementation : a case study of two low-capacity North West Province municipalities |
| title_fullStr | Assessing the effectiveness of municipal standard chart of accounts implementation : a case study of two low-capacity North West Province municipalities |
| title_full_unstemmed | Assessing the effectiveness of municipal standard chart of accounts implementation : a case study of two low-capacity North West Province municipalities |
| title_short | Assessing the effectiveness of municipal standard chart of accounts implementation : a case study of two low-capacity North West Province municipalities |
| title_sort | assessing the effectiveness of municipal standard chart of accounts implementation a case study of two low capacity north west province municipalities |
| topic | Municipal finance -- Law and legislation -- South Africa Municipal finance -- Management -- South Africa Government spending policy -- South Africa UCTD |
| url | https://scholar.sun.ac.za/handle/10019.1/131843 |
| work_keys_str_mv | AT molotomorufa assessingtheeffectivenessofmunicipalstandardchartofaccountsimplementationacasestudyoftwolowcapacitynorthwestprovincemunicipalities |