Comparex Africa is assisting the SA government and local authorities in their drive to boost financial accountability and transparency across the country by enhancing its financial software solution in line with the new General Accepted Municipal Accounting Practices (GAMAP).
GAMAP is based on Generally Accepted Accounting Principles (GAAP) -a global best practice accounting standard.
The changes are being driven generally by the budgeting reforms set out by the government`s Financial Management Bill and specifically by principle 113 of those reforms that deals with municipal asset management.
Local authorities are partnering with Comparex Africa to change their asset management from a fund to a cash-based asset register, ensuring that procurement of assets only occurs when there is cash available.
According to Principal Consultant for Comparex Africa`s Local and Regional Authorities Division, Andries Fourie, all municipal council sites will be switching over to GAMAP as part of a financial accountability drive to ensure all budgets are cash-based.
"Driven by the new Act, there are big changes to financial systems now compared to the past. All transactions must show that there is money available before purchases or payments are made and budget reforms will ensure that debits and credits must always balance."
Fourie said the new financial software has already undergone a lengthy two-year pilot phase at Emfuleni local municipality to ensure its robustness and efficiency and is ready to be rolled out to four other municipalities on 1 July 2003 including Mbombela local municipality, Ehlanzeni district municipality (Nelspruit), Metsimaholo local municipality (Sasolburg) and Klerksdorp local municipality.
He emphasised that Comparex Africa`s Venus Financial Solution has been used by South African local and regional authority institutions since 1989, highlighting Comparex`s lengthy experience with government ICT solutions and key skill-sets.
Fourie, a former assistant town treasurer with extensive local government experience, stressed the importance of financial solution experience to ensure a smooth transition to GAMAP.
"All Comparex Africa`s support team who are working with the municipalities in implementing the new financial solution, used to work for local government and have a close understanding of both existing processes and the new enhanced financial solution based on GAMAP.
In addition, our financial software is a totally home-grown product, fully developed in SA according to local conditions. Over the past year the solution has been further enhanced to embrace technology such as using the World Wide Web and running from a browser environment. With the integration of workflow the solution is now process-driven rather than function-driven. Superior integration with other products such as GIS solutions will position the product as the first locally available local government ERP solution."
Comparex Africa is the leading integrator of ICT-based business solutions that make its clients more successful. Based on a strong customer-centric approach, Comparex Africa delivers technology-business solutions from the full range of competencies within its group that align its clients` strategic and operational business needs. Comparex Africa`s client-centric structure stems from its Systems Integration Model, a methodology that allows for flexibility and close client relationships.
Offering business solutions that address all areas of its clients business, Comparex Africa services organisations within the corporate and large enterprise, government and parastatal markets as well as within the medium enterprise sector in all vertical markets.
As an organisation with its roots firmly embedded in Africa, Comparex Africa reflects a cultural diversity, relying on the unique contribution of each of its skilled employees to succeed. Transformation is an overriding business imperative for Comparex Africa and as such it has dedicated resources from across the organisation to drive employment equity, economic empowerment and social investment programmes.
For more information on Comparex Africa, visit www.comparexafrica.co.za.
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