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Understanding mSCOA Forms in Municipal Budgeting

Posted on by CAN Team

The Municipal Standard Chart of Accounts (mSCOA) is a uniform financial reporting system introduced by the National Treasury of South Africa to standardize how municipalities budget, record, and report their financial information. It ensures that all municipalities use the same accounting framework, improving transparency, accountability, and financial management.

What Are mSCOA Forms?

mSCOA forms are structured financial reporting templates that municipalities must use when preparing their budgets, financial statements, and expenditure reports. These forms are part of the Municipal Finance Management Act (MFMA) regulations and ensure that all financial data is classified consistently across municipalities.

Find every municipality’s mSCOA form starting here. 

Key mSCOA Forms and What They Cover

mSCOA Form Description What It Covers
Table A1: Budget Summary Overview of total revenue and expenditure High-level financial summary
Table A2: Budgeted Financial Performance (Revenue & Expenditure by Standard Classification) Revenue and expenditure categorized by municipal functions (e.g., water, electricity, roads) Expected income and spending per department
Table A3: Budgeted Financial Performance (Municipal Votes & Funding) Performance of municipal service departments (votes) Allocation of funds to different municipal services
Table A4: Budgeted Financial Performance (Revenue & Expenditure by Type) Breakdown of operating revenue and expenses Salaries, service charges, grants, and other income sources
Table A5: Capital Expenditure & Funding Planned capital projects and their funding sources Infrastructure spending and funding breakdown
Table A6: Budgeted Financial Position Municipality’s financial standing Assets, liabilities, and equity
Table A7: Budgeted Cash Flow Statement Cash inflows and outflows Liquidity and cash reserves
Table SA1 – SA37 (Supporting Tables) Detailed breakdowns of revenue, expenditure, debt, and performance indicators Transfers, grants, indigent support, irregular expenditure, and consultants’ costs

Why Are mSCOA Forms Important?

  • Standardization – Ensures that all municipalities classify and report financial transactions uniformly.
  • Transparency – Makes it easier for residents and stakeholders to analyze and compare municipal budgets.
  • Accountability – Helps track municipal spending and detect irregularities or mismanagement.
  • Data Accuracy – Reduces errors and improves financial reporting.

Municipalities are legally required to publish their budgets using mSCOA formats, making it essential for residents to understand these forms when analyzing municipal finances and participating in budget discussions.

CAN Team