Municipal Standard Chart of Accounts and Financial Management Performance of South African Municipalities

Despite many attempts to reduce and eliminate unauthorised, irregular, fruitless and wasteful expenditures (UIFWE) in municipalities, the phenomenon, on the contrary, has been on the rise. The most recent attempt was the introduction of municipal Standard Chart of Accounts (mSCOA) in 2017, which is implemented digitally through a computer-based system. Despite its implementation, UIFWE have, however, continue to be on the rise. This study assesses the effects of mSCOA on the UIFWE incurred by South African municipalities. To achieve this, data was mined from Auditor General of South Africa’s reports, from 2015–16 financial year to 2021–22 financial year, and trend analysis and descriptive statistics used to analyse the data. Analysis of the data mined could not prove any effect of mSCOA on UIFWE. Since the implementation of mSCOA, there has been an increased trend in UIFWE incurred by municipalities. It seems program preconditions such as the complexity of mSCOA, complexity of government structures, political interference and municipal cultures, have significant impact on effects of mSCOA on UIFWE. Concerted efforts are required from every member of the governmental ecosystem if benefits from such a well-designed program are to result in improved financial management and good service delivery. Policymakers are advised to consider enablers and constraints of interventions before implementation, if they are to be successful.