INTRODUCTION TO THE ECONOMIC REPORTING FORMAT (ERF) AND SCOA

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• SESSION 1
• INTRODUCTION TO THE ECONOMIC REPORTING FORMAT
  (ERF) AND SCOA
• PRESENTED BY NATIONAL TREASURY

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WHAT IS ERF AND SCOA?

• Economic Reporting Format (ERF)
• Budget reporting format
• Standard Chart of Accounts
• Structure of government accounts

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WHY A NEW ECONOMIC REPORTING FORMAT?

• Old formats outdated
• Part of Public Sector Budget Reform
• Improve accountability in the public sector
• Better quality information to legislatures
• Single classification standard
• Compliance to international reporting standards

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DESIGN PRINCIPLES

• In line with Constitution
• It is clear, user friendly and accessible
• It is transparent and promotes accountability
• Easier to calculate relevant economic variables
• GFS tables can be extracted easily

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WHAT IS THE SCOA?

• Standardised Chart of Accounts
• Accounts correspond to Economic Reporting Format
  requirements
• Implemented within the financial systems
• Controlled by National Treasury

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FINANCIAL SYSTEMS FOR ERF AND SCOA
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DESIGN PRINCIPLES

• Good governance and financial practice
• Complies with economic and accounting standards
  (GFS,GRAP,ASB,IPSAS)
• Satisfies reporting requirements of stakeholders
• Allows for cash and accrual accounting

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WHO USES SCOA?

• Budget office officials
• Accounting officers
• Accounting clerks
• Economic Analysts
• Statisticians

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MACRO-LEVEL BENEFITS

• Improved quality of information
• Increased efficiency in extracting information
• Positive public perception
• Comparable financial information
• Standardised financial information

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MICRO-LEVEL BENEFITS

• Less duplication of accounts
• User-friendly system
• Easier to audit
• Better management information
• Focus on expenditure management
• Standardised process of transacting
• Job satisfaction and transfer of skills

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• For any additional questions or issues for
  clarification, please contact the National
  Treasury SCOA Technical Committee at
• Call centre [phone]
• E-mail scoa_at_treasury.gov.za
• Website http//scoa.treasury.gov.za