ican 2015 annual report

ICAN 2015 ANNUAL REPORT

2

Dear Members “A well designed reputation system is key for building trust, and how do you build trust, by

providing the right amount of disclosure” – Joe Gebbia, founder of AirBnB

Our 2016 Annual Report is presented on the principles of the Integrated Reporting Framework

as we believe that our members are our most important stakeholder group and through better

disclosure of and communication on how we are delivering on our strategy, we will develop the

trust in the CA (NAM) brand even further.

It has been such a privilege to lead the institute over the past 2 years and as I come to the end

of this journey, I would like to highlight one specific milestone that we as Council are very proud

of. On 18 March the Institute released the results of the Final Professional Examination written

in November 2015. These examinations are the final step in the path to becoming a Chartered

Accountant. To qualify requires ongoing commitment and dedication over a period of at least

seven years of academic study and practical training and every successful candidate is to be

congratulated on their achievement. The overall Namibian pass rate of 92% is higher than the

Southern African pass rate of 88% which is very gratifying. Even more pleasing is the fact that

24 out of the 34 successful candidates (71%) are black Namibians so the transformation of the

CA profession continues at an ever increasing pace. The Institute wishes to applaud the

University of Namibia and Namibia University of Science and Technology on the 11 candidates

who obtained their undergraduate degrees from these two universities. With a pass rate of

91% for these candidates it is evident that Namibian universities can produce graduates that do

succeed in their post-graduate studies and professional examinations. Congratulations to

UNAM and NUST.

In conclusion, I would like to take this opportunity to thank each and every member and non-

member that offered their time and expertise to our activities over the past year – without your

passion and commitment none of what you will read in this report would have been possible.

I thank you

Erentia Tromp President 2014/15 25 March 2016


3

TABLE OF CONTENTS

1. Vision, Mission And Core Values 4

2. Ceo’s Message 5

3. Business Model 6

4. External Environment 7

5. Risk Management 9

6. Strategy 11

7. Engagement With Stakeholders 13

8. Performance 14

9. Outlook 17

10. Governance 19

11. Council And Staff 20

12. Committees 21

13. Abridged Annual Financial Statements 22


4

1. VISION, MISSION AND CORE VALUES


5

2. CEO’S MESSAGE

Reporting to members through the Annual Report is an important element of the communication strategy of the Institute. The change to the format of the 2014 Annual Report was a first step in improving the information made publically available through this report. In preparing the 2015 Annual Report the Institute has taken guidance from the Integrated Reporting Framework of the International Integrated Reporting Council. The 2015 Annual Report does not purport to be fully compliant with <IR> requirements but is a further step in improving communication to members and stakeholders. This Annual Report is an effort to provide insight into how the Institute creates value for its members and stakeholders in the short, medium and long term, the nature of the resources and relationships that are fundamental to the value creation and to place this in the context of the external environment within which the Institute operates. The 2014 annual survey provided an insight into the age profile of our members. Following a significant increase in membership from 2010 the age profile of the Institute has become significantly younger. Younger members have different needs and the Institute has to be responsive to these changing needs if it is to remain relevant. Council is investigating how to establish a social media profile which must be engaging, relevant and stimulating. It is important that the Institute remains focused on its members as its most important stakeholder group. It has been a matter of pride for the Secretariat to have a close relationship with members and trainees. However given membership growth from less than 100 to over 500 and trainees from less than 60 to over 280 this becomes more challenging. The Secretariat will continue to make every effort to deal with member’s enquiries timeously and effectively.

CELEBRATING 25 YEARS OF ICAN – members who joined by 1993


6

3. BUSINESS MODEL

Fundamental to the sustainable existence of the Institute is a clear understanding of the business model that underpins the activities of the Institute. The business model is the process of transforming inputs by way of activities to outputs and outcomes. The business model must be focused on achieving the strategic purpose of the Institute, using the members of Council and the committees, as supported by the Secretariat.

ATTRACTING LEARNERS TO ACCOUNTING

• How do we do it: >>> Career fairs across the country >>>> Individual schools career

presentations >>>>> Support of National Accounting Talent Search

STUDENTS GRADUATING

• What do we have to do: >>> Support for the establishment in Namibia, of dedicated B.Comm (CA stream) courses >>>> Finding and facilitating funding for students >>>>> Accreditation of local

degrees

COMPETENT TRAINEES

• What do we need: >>> Continued co-operation with the PAAB to ensure all elements of the SAICA

Training regulations are implemented and monitored

SATISFIED MEMBERS

• What must we achieve: >>> Mutual Recognition Agreement with SAICA >>>> Constructive relationship with Minister of Finance and Receiver of Revenue >>>>> Quality relevant CPD


7

4. EXTERNAL ENVIRONMENT

In pursuing its business model the Institute does not operate in isolation. The external environment in which the Institute operates can have a significant impact on the ability of the Institute to generate value over the short, medium and long term. Failure to take cognizance of changes in the external environment or to note trends that slowly gather momentum will jeopardize the sustainability of the Institute. During the strategic review process in 2015 all Council members were engaged in a structured survey to establish the primary external factors to consider in building the Institute’s strategy.

ECONOMIC FACTORS The Namibian economy is showing signs of a reduction in growth, in part due to a

more conservative national budget. This however will not have an impact on

the demand for newly qualified Chartered Accountants due to the

recognized shortage of financial and accounting skills. ICAN must be ready to provide new CA’s to the Economy

TECHNOLOGY The availability of technology to improve

the quality and extent of services to members, at lower operating costs,

through automating processes remains a fact. The decision to invest in such

technology is however influenced by the ability to measure and quantify the

improvement in the services to members

SOCIO-POLITICAL The Namibian political arena

continues to maintain its relative static distribution of representation.

Media reporting of fraud and corruption continues unabated and the Institute along with individual

members must be and be seen to be applying ethics of the highest order

to avoid brand damage.

In the social arena, a groundswell of social dissatisfaction with the quality

of education, lack of employment, access to housing and other basic

services is threatening social stability. The Institute acknowledges that

solutions to such social challenges will require innovative thinking. It is

necessary that ICAN and its members must play their role in the reduction

of social inequity.

ICAN believes that you “DON’T THROW AWAY WHAT YOU CAN USE FOR ANOTHER DAY” Providing usable stationery and office supplies to Havana Primary School.


8

EDUCATING & INFORMING Reaching out to learners through Trade Fairs and Career Expo‘s to share the magic of accounting! Joint Activities with the University of Namibia Accounting Students Society

LEGAL AND REGULATORY Planning for a review of the Public Accountants and Auditors Act is at an advanced

stage. This review could have far reaching implications relating to the regulation of the Accounting Profession. ICAN must, and will, seek to be pro-actively engaged in

the review process.

Equally, the quality of commercial legislation drafted for comment or promulgated in the recent past has reflected deficiencies. The Institute, through its committees and members, must continue to offer its support to central government, in pursuit of high

quality legislation.

The December 2015 publication of the New Equitable Economic Empowerment Framework has brought transformation of the economy to the foreground. As

professional business advisors or members in business there will be an expectation that Chartered Accountants will provide thought leadership to address the challenges

of NEEEF. It is imperative that all members are adequately informed and knowledgeable in order to act ethically whether as owners, employees or as advisors.


9

5. RISK MANAGEMENT

Risk management is an integrated element in the strategic planning of the Institute. The ability to have an awareness of changes in the external environment which changes the risks for the Institute is important. So is the ability to change risk mitigating actions to avoid misallocating scarce resources to low risk factors.

RISK IDENTIFIED MITIGATING ACTIONSRESIDUAL RISK ASSESSMENT

Outstanding Mutual

Recognition Agreement with SAICA to ensure

CA(Nam) and CA(SA) are equivalent.

Self-assessment process has

commenced, expected to be

completed by June 2016.

Will secure MRA for period of

accreditation (five years).

Low, process in progress, no

known reasons for accreditation not

to be given.

Review of Public Accountants’ and

Auditors’ Act resulting in

regulation of the CA profession by

the Board.

Research best practice benchmark recommendations

and determine impact on Institute

and members.

Be pro-active through engaging

with the PAAB consultants as early

as possible.

Risk of additional regulation of the

profession: Moderate to High.


10

RISK IDENTIFIED MITIGATING ACTIONSRESIDUAL RISK ASSESSMENT

Recognition of ACCA members to

provide attest purposes: =

platform for the ACCA to promote

ACCA equivalent to a CA(Nam).

Greater allocation of resources to

Branding & Raising Profile of ICAN and

CA (NAM)

Educatingemployment

agencies on what a CA is

Low to moderate risk if both

members and the Institute continue

to provide high quality services to

the public.

Lack of recognition by central government of the resource base that

ICAN represents;

Ongoing engagement, encouraging Minister of Finance to use ICAN as a

sounding board.

Lobbying for the establishment of

Standing Committees on Taxation and on

Company Law.

Moderate to high.

Time to qualify is a deterrent to entering

the profession.

Marketing of profession using local

role models

support the B.Comm (CA stream) course.,

establish a CTA in Namibia.

Ongoing moderaterisk.


11

6. STRATEGY

The 2015 strategic review through a structured interview process identified the primary themes that the Strategic Plan should address.

From the identification of the primary themes the strategic objectives were revised, reducing from seven to five and formulating the objectives as action statements

STR

ATE

GIC

O

BJE

CTI

VE A growing membership

base representative of national demographics.

MO

TIV

ATI

ON A business model

imperative, to increase the number of CA’s

available to the national economy.

STR

ATE

GIC

O

BJE

CTI

VE To have an actively

engaged membership base.

MO

TIV

ATI

ON To ensure that the

Institute is relevant and responsive to member’s

needs.

Each theme interacting with and

impacting on the others

Membership Growth

Brand & Profile

Stakeholder Relations


12

STR

ATE

GIC

O

BJE

CTI

VE To raise the profile of ICAN

and CA(Nam) brand.

MO

TIV

ATI

ON In order to make the

profession attractive and to provide value to members because the CA Brand is

highly valued by Commerce & Industry.

STR

ATE

GIC

O

BJE

CTI

VE Through active stakeholder

engagement contribute and support national

development.

MO

TIV

ATI

ON In a changing environment

understanding stakeholders and retaining their support is important for institutional credibility

and sustainability.

STR

ATE

GIC

O

BJE

CTI

VE Maintain and protect

quality of CA(Nam) qualification and brand.

MO

TIV

ATI

ON A fundamental pillar of a

strong profession is the quality of its qualification,

as this underpins the market recognition of the

brand.

CORPORATE SPONSORSHP Putting two quality brands together, ICAN and Bank Windhoek signing of Coprorate Sponsorship Agreement – March 2015.


13

7. ENGAGEMENT WITH STAKEHOLDERS

Stakeholder engagement is an ongoing process which involves various stakeholders across many interfaces. Through formal engagements, interactions at and through the committees of ICAN and participating in the activities and projects of other bodies the Institute works at maintaining relationships and building influence. The interactions and engagements of the Institute are cross cutting with its stakeholders and cover the following significant stakeholders through the activities outlined:

LEARNERS: support of NATS

and national career fairs

STUDENTS: UNAS/PACSO annual prizes, career fairs.

MEMBERS: relevant and

affordable CPD, annual surveys, functions and Newsletters

PAAB: regular consultations with ICAN nominated Board members

MINISTER OF FINANCE: meetings and

agreement to future regular meetings

UNAM / NUST: UNAM accreditation

programme, ICAN representation on Academic Advisory

Boards

SAICA / NIPA: regular

interaction of Secretariats,

joint committees.

NAMFISA, FIC, BON, NQA, BAN, NTA, LAW SOCIETY, ESTATE AGENTS BOARD: project participation and

formal engagement


14

8. PERFORMANCE

The performance of the Institute can be directly measured in the growth in membership which reflects the creation of value. In the context of the socio-cultural history of Namibia, the need to transform the profession from a white male dominated institution to one that reflects the demographics of the country and provides for the aspirations of all Namibians has long been a strategic imperative for the Institute.

Membership demographics have changed dramatically since the formation of the Institute in October 1990. Previously disadvantaged and black Namibians are increasingly attracted to a profession which offers access to the highest echelons of business and finance.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1995 2000 2005 20102015

2 6 13 20 61

2 6 10 52918

32 31

65110

81107 126

151 204

Demographic profile of ICAN membership showing % of total and actual membership

White male

White female

Black male

Black female

TRANSFORMING ICAN

CHANGING MEMBERSHIP

PROFILE

CHANGING TRAINEE PROFILE


15

DEMOGRAPHICS OF NEW TRAINEE REGISTRATIONS

The real indicator of the future of the Institute is clearly shown in the demographics of new trainee registrations. The driver of gender and racial transformation is in the new trainee profile. Increasingly the profession is seen to offer black Namibian women a professional career path that provides a platform for corporate careers or initiating entrepreneurial ventures.

NEW TRAINEE REGISTRATION – 20 YEARS OF DRIVING CHANGE

TECHNICAL SERVICES TO MEMBERS Whilst there is a significant body of technical standards and guidance that are issued and regularly updated by the International Federation of Accountants and associated Boards these deal with global standards. There is a need for the Institute to provide technical guidance to its members dealing with local matters of importance to the profession. The Institute has the responsibility for pronouncements in respect of accounting disclosures and an authority delegated by the Public Accountants’ and Auditors’ Board for pronouncements in respect of auditing standards. During the year under review the Institute issued the following circulars: CIRCULAR TOPIC

Circular 2015/001 Receiving Funds And Making Payments On Behalf Of Clients

Circular 2015/002 Determination Under The Banking Institutions Act,1998 (Act No 2 Of 1998), As Amended: Appointment, Duties And Responsibilities Of An Independent Auditor Of A Banking Institution (Bid 10)

Circular 2015/003 Estate Agent’s reports

Circular 2015/004 Guidance for Auditors – Long-term Insurance Annual Returns in terms of the Long-Term insurance act of 1988.

Circular 2015/005 Recommended Format Of Annual Financial Statements And Auditor’s Report For Body Corporates

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1995 2000 2005 2010 2015

1 7 9 13

425

21 12 24

17

16

2321

26

19

2022 21 23

17

Demographic profile of new trainee registrations showing % of total and actual membership

White male

Whitefemale

Black male

Black female


16

CONTINUING PROFESSIONAL DEVELOPMENT To support members in complying with internationally benchmarked CPD requirements the Institute provides a CPD programme which covers technical and non-technical subjects at below market rates as a service to its members.

An important aspect of being a professional is the commitment to being and remaining up to date. As a Chartered Accountant you are recognized as a financial professional and accorded a status as a result of your professional qualification. It is your responsibility to keep yourself up to date, to remain current and able to represent your profession.

CPDTHE KEY TO MAINTING A PROFESSIONAL BRAND,

A SERVICE TO MEMBERS;

AN OPPORTUNITY

FOR LIFE LONG LEARNING

Goal Setting

= 36 Delegates Strategic risk management =

73 delegates

Business english workshop = 40

delegates

Tax conversion for trainees = 69

IFRS Update = 84 delegates

Excel Training = 19 delegates

Communication skills =26 delegates

IFRS FOR SMEs = 60 delegates

Work life balance = 16

delegates

Tax Update = 96 delegates

IFRS Update= 86 delegates


17

9. OUTLOOK

Looking to the future the Institute shall continue to promote accounting to learners across the nation. By attracting academic talent to the profession and facilitating the path to qualification the Institute will be fulfilling its raison d’être. Through the increase in Chartered Accountants available to the economy will provide a pool of resources vital in a growing economy.

STAKEHOLDER ENGAGEMENT Stakeholder engagement is an ongoing process which is critical to understanding stakeholder needs and expectations. A significant opportunity exists in the renewed relationship with the Honorable Minister of Finance. This will be a platform that the Institute will seek to use to promote primary issues which affect members in business and in practice. Members’ satisfaction surveys will remain an important source of information about the performance of the Institute. Other engagements through participating in projects and initiatives remain excellent opportunities to influence.

shorter route to qualification,

faster transformation and growth of membership

Accredited B.Comm

(CA Stream) UNAM

more marketing

of the profession to schools

Minister of Finance and other State

Agencies

Educational Institutions and fellow accounting

organisations

Members

Business associations


18

BRAND AND PROFILE

Enhancing the Brand and Profile of the CA Qualification is an ongoing process which includes a role for the Institute in being recognized as representing a highly organized and skilled cadre of members. At the same time it is necessary to ensure that individual members are recognized in their community as being highly ethical and competent thought leaders. Only through a combination of Institute and member activities and actions will the Brand & Profile be enhanced.

Building relationships

with other professional and industry bodies

Developing and implementing a

media engagement

strategy

Developing and utilising a social media presence

Initiating an ICAN sponsored

Financial Reporting Awards Project

BRAND AND

PROFILE


19

Head of Secretariat

ReceptionistFinance &

Administration Officer

10. GOVERNANCE

GOVERNANCE ACHIEVED THROUGH

President and Vice-President elected by Council

5 COUNCIL meetings during the year

3 EXCO meetings a year

CEO not fulfilling the role of the President

A formal delegation of authority framework

Strategic plan guiding activities and planned expenditure

Annual budget

Quarterly financial reporting

Annual audit of financial statement; two yearly rotation of auditors

Staff performance appraisal system

Council elected by members

CEO

EXCO, President, Vice and CEO


20

11. COUNCIL AND STAFF

Council for the year under review:

01/01/2015 – 08/04/2015 09/04/2015 – 31/12/2015 Name Category Name Category E Tromp President E Tromp President T Horn Vice - President T Horn Vice - President A Stier Council A Akayombokwa Council G Fourie Council J Cronje Council A Van Coller Council T De Jager Council C Britz Council B Du Plessis Council B Du Plessis Council A Stier Council J Cronje Co-opted R Esterhuyse Co-opted A Akayombokwa Co-opted R Niddrie Co-opted R Niddrie Co-opted T De Jager Co-opted R Esterhuyse Co-opted

Secretariat Staff: Position Staff Status 31 December 2015

CEO Du Toit J (Mr) Contracted 1 October 2001 Consultant Fourie A (Ms) Contracted 20 August 2015 Head of Secretariat Van Tonder W (Ms) Appointed 1 July 2012 Finance & Admin Officer Le Clus L (Ms) Appointed 1 April 2015 Receptionist Tsaraes S (Ms) Appointed 1 July 2009


21

12. COMMITTEES

With limited resources of the Institute, the Council and the secretariat, is heavily reliant on the activities of the committees that have been established. These committees in turn are dependent on members and non-members who volunteer their time and in many cases the time of their firm or employer in order to participate and drive the committee projects.

Members of the Institute and non-members who participated in the committees include:

Bauernschmitt, Nikia Keding, Wolfgang Selck, Uwe

Beukes, Adeline Kisting, Brigitte Shapange, Trophy

Brand, Gerda Kotze, Cameron Sheya, Johannes

De Bruin, Helen Kouwenhoven, J-P Swart, Gifford

De Vos, Johan Lucas, Nelson Swartz, Christo

Dikuua, Miriam Ludwig, Richard Theron, Richard

Dreyer, Nicole Mandy, John Uaandja, Nangula

Fick, Susan Maritz, Zelda Van Alphen, Hartmuth

Fourie, Anca Masule, Brian Van Coller, Annette

Fourie, Gerhard Matthee, Carolien Van der Riet, Louis

Gamses, Claretta Ndahangwapo, Samuel Van der Walt, Deon

Grant, Robert Ndanyengwa, Martha Van Wyk, Janey

Hendriks, Colyn Nel, Johan Van Wyk, Neels

Herbst, Essie Nel, Magda Vente, Bernard

Heuer, Purvance Nelulu, Nanghelo Visser, Johan

Hugo, Stefan Niddrie, Richard Wolff, Uwe

Kaapangelwa, Matti Paliwal, Udai

The significance of the time committed to supporting the Institute can be appreciated if a value is attributed to the time of the number of committee members and the number of meetings. At an average attendance of 80%, an hourly rate of N$2,000.00 and two hours per meeting the value is in excess of N$1,100,000

NAME CHAIR MEMBERS MEETINGS Coastal R Esterhuyse 4 + Chair 4 Marketing & Career Guidance T Horn 4 + Chair 7 Taxation B du Plessis 12 + Chair 7 Technical A van Coller 14 + Chair 9 Transformation A Stier 8 + Chair 4 Training and Education T de Jager 7 + Chair 8


22

13. ABRIDGED ANNUAL FINANCIAL STATEMENTS

This summarized report is extracted from audited information, but is not itself audited. The Council takes full responsibility for the preparation of the abridged report and that the financial information has been correctly extracted from the underlying annual financial statements.

STATEMENT OF COMPREHENSIVE INCOME 2015 2014 N$ N$ Revenue 3,613,559 3,262,066 Other income 150,400 257,342 Operating expenses (3,505,263) (3,686,583)

Operating surplus / (deficit) 258,697 (167,175) Interest received 148,864 35,523 Surplus / (deficit) for the year 407,560 (131,652)

STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2015

2015 2014 N$ N$ Assets Non-current Assets Equipment 50,185 77,260 Current Assets Trade and other receivables Prepaid expenditure

209,246 12,669

177,207 30,716

Cash and cash equivalents 2,615,253 1,837,040 2,837,168 2,044,963 Total Assets 2,887,353 2,122,223

Equity and Liabilities Equity Accumulated surplus 2,370,432 1,962,872 Liabilities Current Liabilities Trade and other payables 516,921 159,351 Total Equity and Liabilities 2,887,353 2,122,223

ican 2015 annual report

Documents