acfe integrated report 2015/2016 - south africa acfe sa...–servaas du plessis exco servaas du...
TRANSCRIPT
ACFE Integrated Report
2015/2016
“Rather fail with Honor than succeed by Fraud” - Sophocles
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CONTENTS
INTRODUCTION: ............................................................................................................................................................................................ 4
OBJECTIVE OF THE INTEGRATED REPORT: .......................................................................................................................................... 4
Approval and Statement of Responsibility ................................................................................................................................................ 5
ACFE Leadership Structure: ....................................................................................................................................................................... 6
CEO REPORT: .................................................................................................................................................................................................. 7
Company secretary (Board) OVERVIEW................................................................................................................................................. 11
MISSION: ..................................................................................................................................................................................................... 14
“Fraud is the daughter of greed.” ~jonathan Gash .............................................................................................................................. 14
GOAL: ............................................................................................................................................................................................................ 14
“Begin with the end in mind.” ~Stephen Covey ................................................................................................................................... 14
TRANSPARENCY AND ACCOUNTABILITY: ........................................................................................................................................... 15
BOARD OF DIRECTORS: ........................................................................................................................................................................... 15
ACFE SA PROFESSIONAL STANDARDS: .............................................................................................................................................. 18
Board report overview ................................................................................................................................................................................ 18
ADVOCACY: ............................................................................................................................................................................................. 19
KEY VALUE ATTRIBUTES ................................................................................................................................................................. 19
1. Human Capital: .............................................................................................................................................................................. 19
2. Members: ........................................................................................................................................................................................ 20
3. Member Growth - Annual figures 1 August 2015 – 30th of July 2016: ................................................................................ 20
4. Education and Training: .............................................................................................................................................................. 23
5. Certification: .................................................................................................................................................................................. 24
6. Regional committees: ................................................................................................................................................................... 24
7. Development and growth of the African continent: ............................................................................................................... 24
8. Conference: .................................................................................................................................................................................... 25
RISKS – (OPPORTUNITIES AND THREATS) ...................................................................................................................................... 26
Challenges: ............................................................................................................................................................................................... 26
1. Upgrading Information Technology Platform ......................................................................................................................... 26
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2. Membership Database Audit: ..................................................................................................................................................... 26
3. Challenges regarding our membership fees: ............................................................................................................................. 27
Opportunities: ......................................................................................................................................................................................... 27
1. Integrated Membership Management System .......................................................................................................................... 27
2. Upgrading Information Technology Platform ......................................................................................................................... 28
3. Membership Database Audit: ..................................................................................................................................................... 28
4. New Website .................................................................................................................................................................................. 29
STRATEGIC FOCUS .................................................................................................................................................................................... 29
STRATEGIC OBJECTIVES ......................................................................................................................................................................... 30
OVERALL FINANCIAL REPORT – YEAR ENDED 31 JULY 2016 ...................................................................................................... 32
ACFE SA CORPORATE MEMBERSHIP LIST 2016 ...................................................................................................................... 54
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INTRODUCTION:
This year, the ACFE (Association of Certified Fraud Examiners) celebrated its 28th anniversary since
its launch in Austin Texas by Dr. Joseph T Wells in 1988. Recognition of the profession and the
ACFE grows annually around the globe with more than 175 countries joining hands in the fight against
fraud and white collar crime.
The ACFE SA Chapter was established 10 years later in 1998 and the first fraud conference was
hosted 18 years ago. The ACFE Africa Conference this year celebrates its 9th anniversary.
OBJECTIVE OF THE INTEGRATED REPORT:
The need to raise the standard of fraud examination in Southern Africa and for a Professional Body,
not limited to a specific profession such as accounting or law, resulted in the establishment of a local
Chapter in 1998 with the mission to provide a community environment in which local forensic
examination practitioners can associate. This Chapter is a collection of individuals from varying
industries and professions, all with a single goal in mind, reducing the incidence of white-collar crime
in South Africa.
The objective of this report is to provide all our members with a broad and comprehensive report
regarding the ACFE SA’s ongoing growth in economic, social and environmental performances,
strategies and prospects leading to the enhancement of our value proposition on short, medium and
long term while highlighting both our challenges and successes whilst growing.
The Integrated Report has been prepared in keeping with best practice, pursuant to the
recommendations of the King III Report on Corporate Governance and the principles prescribed by
the International Integrated Reporting Council in its proposed framework. This report will also deal
with issues stipulated in the South African Companies Act, and touch on principles set out in the
coming King IV report.
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APPROVAL AND STATEMENT OF RESPONSIBILITY
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OFFICE OF THE ACFE SA
ACFE Leadership Structure:
ACFE SA EMPLOYEES
ACFE Board
President– Servaas Du Plessis
EXCO
Servaas du Plessis, Bogale Molefe, Bradley Smit, Charl Strydom, Dave May, De Wet Ferreira,
Jaco de Jager, Jonathan le Roux, Morné Britz.
ACFE CEO:
Jaco de Jager
Janine Habig
PA & Company
Secretariat
Melanie Venter
Finance Officer
Nelly Khoza
Membership Officer
Kelly McGeer
Communications Officer
Jesca Lipadzi
Training &
Development
Officer
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CEO REPORT:
Over the past years I have seen a tremendous growth in
the member numbers and brand of the ACFE and ACFE
SA. This past year has exceeded itself and if I’m allowed
to say, has taken its toll — as you will see from all the
grey hair I have accumulated. For me, this past year has
been a roller-coaster ride with, fortunately, a lot of
positives outweighing the negatives. This chapter is
extremely fortunate in having been able to acquire highly
skilled staff over the years and have recently added a new staff member to this list when appointing
Kelly as our communications officer. Our internal restructuring, and our updating of our internal
processes and procedures also clearly paid off as will be clear from this report. I believe that, going
forward, we will grow from strength to strength, and I am extremely excited about what the future
holds for the ACFE SA.
Over the past two years, I regularly referred back to what we have achieved since 1998. I have been
in the CEO seat now for eight years and believe that those before me have set a solid foundation for
the current Board of Directors and me to build on. I, therefore, need to thank the visionaries who
started the ACFE SA 18 years ago, and those who committed their time and money to sit on the
ACFE SA Board of Directors as volunteers. Their contributions ensured that the forensic profession
is now recognised as a profession and the ACFE SA as a professional entity. I want to be forward
when boasting that the ACFE brand is recognised not only in South Africa, but also in many African
countries. We still have a long way to go to ensure that the standard is accepted throughout Africa,
but with the assistance of fellow African chapters, as well as African regional committees, this will be
possible.
This report will be focusing more on what we have achieved over the past year and where we will be
going from here.
When looking at our achievements this last year, one has to refer to the publication made in the
Government Gazette on 23 February 2015, stating it was approved that CERTIFIED FRAUD
EXAMINERS®, who are professional members of the ACFE SA Chapter, are ex officio (by reason of
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the designation they hold) Commissioners of Oath in terms of Section 6 of the Justices of Peace and
Commissioners of Oaths Act, 1963 of 1963 (the Act). In terms of this ex officio status, CFE®
certification must be maintained in order to retain the Commissioner of Oath status. For me, next to
registering the ACFE as a professional body, this remains one of our biggest achievements.
Where in the past we were forced to do everything from collecting vendor forms to the loading of
payments, we now have dedicated people dealing with the various functions in our office.
I want to take this opportunity to thank the following team members for all their hard work and
dedication this past year and to introduce them to you as our member:
Finance
Melanie Venter
Communications
Kelly McGeer
Membership
Nelly Khoza
PA & Company Secretariat
Janine Habig
Training & Development
Jesca Liphadzi
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Overall the ACFE SA has grown in all aspects. From the report you will note that our membership
increased by 17,8%, CFE’s by 24,30%, and we roughly have close to 1 000 members who are
registered as Associate members and will be writing the CFE International exam within the next year
or so.
Increasing our training events per region and moving more into the African countries has assisted us
to support our members in obtaining the required 20 hours CPE points close to home and all over
Africa. We increased our training events from 52 to 57, ensuring that we not only create skills
development opportunities to our members, but also networking opportunities. What further stands
out is the fact that 83.7 cents of each Rand received from members for services were spent on
delivering the services.
With all these successes highlighted in this report the question now remains, whereto from here… I
can confirm that we continue to look for new opportunities to improve our service to you, our member.
That’s why the ACFE SA has taken up the opportunity to develop a brand new mobile application that
offers all ACFE delegates the opportunity to obtain all relevant information regarding the ACFE SA
(training, events, CPE points, conference, changing your personal details from a click away etc.)
Service delivery, for me, not only deals with updating of your details, providing of training and ensuring
a stronger brand, but also the creating of new products to assist you in the combat of fraud and white-
collar crimes. You will, therefore, see how we, going forward, will drive initiatives proposed by the
various forums, such as the sharing of intelligence by the Intelligence Gathering Forum, setting of
formal industry standards for the different industries as per the Forensic Industry Standard Forum,
and ensuring closer collaboration between the private and public sector as per the Private and Public
Sector Forum.
I again want to emphasise the fact that the ACFE SA is a member organisation; it is YOUR
organisation. I want to thank YOU for all the support, the emails, positive criticism, newsletter articles,
the fun during our ACFE annual Golf day, and many more. I am excited about the future of the ACFE
SA and the profession.
Jaco de Jager
CEO: Association of Certified Fraud Examiners – SA Chapter
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President’s Report: Dear guest, fellow anti-fraud professional, sponsor, and colleague
Time certainly flies when great things are happening. The South African
Chapter made massive strides in the past year, growing its footprint in
Africa, improving member engagement, and most importantly, moving
closer to the establishment of an ACFE African Chapter to address the
unique challenges on our continent.
Over the past few years, members asked several questions regarding
representation at board level. I must stress that the election of board
members has always been a democratic process. During our strategic discussion in May, the
board unanimously concurred to include the elected chairpersons of the regional committees
to represent the various regions at board level.
With only four seats available in 2016, we decided to include the chairpersons of the four
biggest regions by membership this year. In order not to exclude the two smallest regions, the
chairpersons of these committees will attend board meetings as guests until seats become
available for them in 2017.
The introduction of the new information technology platform in 2015, the launch of the ACFE
SA Application on both Google and Apple Application stores in 2016, and regional committee
representation at board level from 2017 onwards, will most certainly improve member
engagement and member services in the years to come.
Fellow board members, colleagues at the ACFE SA, our sponsors, esteemed speakers and
guests, thank you for your contribution and support over the past year. On behalf of the board
of directors, it is with great honour that we welcome you to the 2016 African Conference.
May you all enjoy the conference and leave with enriched knowledge later in the week.
Servaas du Plessis
President: Association of Certified Fraud Examiners – SA Chapter
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COMPANY SECRETARY (BOARD) OVERVIEW
As part of the ongoing process of ensuring governance occurs through all our interactions, the
following serves as a summary of those initiatives, guidance and associated actions that continue to
enhance the roles and responsibilities that the Board of Director’s need to fulfil.
Guidelines and Governance for the Board of Directors
At the beginning of each year, all directors are provided with the ‘Guidelines for Board of Directors’
and the ACFE uniform chapter bylaws. All directors are to ensure they have read through the bylaws
and understand their roles and responsibilities. In addition, directors declare all possible conflict of
interests on an ongoing basis prior to each of the four board meetings held per year.
Exco/Board of Directors meetings and event attendances
The following table depicts the detail of meetings and events attended by the members of the board,
as well as the annual report submission by the respective directors:
Board of Directors Board
meetings Exco
meetings Regional events
ACFE Imbizo
Director Reports
Exco
Servaas du Plessis 5/5 3/3 5 Yes Yes
Bogale Molefe 5/5 2/3 2 Yes Yes
Bradley Smit 4/5 2/3 2 Yes Yes
Charl Strydom 3/5 3/3 2 No Yes
De Wet Ferreira 3/5 2/3 4 Yes Yes
Jaco de Jager 5/5 3/3 6 Yes Yes
Jonathan Le Roux 4/5 2/3 4 Yes Yes
Marius Smit 5/5 2/3 1 Yes Yes
Morné Britz 3/5 3/3 3 Yes Yes
Dave May 5/5 3/3 2 Yes Yes
Oth
er
Caroline Mampuru 1/5 N/A 0 No No
George Barnes 3/5 N/A 1 Yes Yes
Lionel van Tonder 3/5 N/A 0 No Yes
Sipho Nkosi 4/5 N/A 1 Yes Yes
Board Report summary
The various annual reports of the directors are summarised by the Company Secretariat to provide
an overall view to the President of the ACFE South African Chapter. The directors annual report can
be viewed on the ACFE SA website.
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Contributions made to the ACFE SA by the Board of Directors throughout the year, amongst others,
include the following:
Continually striving to market the ACFE SA, ACFE African Regions and ACFE International in
all dealings with organisations like the Special Investigating Unit (SIU) and the Private Security
Industry Regulatory Authority (PSIRA).
Focus on ethical considerations and the ACFE SA’s role in it. The recent attendance by some
ACFE SA Board Members to the Coalition for Ethical Operations initiative to promote ethical
business practices in sub-Saharan Africa, is one example.
Meeting with various chapter members in neighbouring African countries in order to grow the
African Chapter through collaboration and teamwork.
Providing input into the King IV report from a fraud examiner perspective in order to have our
profession and duties depicted in the new King Report.
Driving the Quality Control for Trades and Occupations (QCTO) - application to get the Fraud
Examiner profession approved and being approved as both a Quality Development and Quality
Assurance Partner.
Party to negotiations with UNISA’s College of Law Police Practice to have the CFE Manual
approved as prescribed material for 2017 graduate courses.
Involved in the identification of risks and enhancements to various ACFE SA policies such as
the Financial Policy, IT Policy and other associated policies.
Memorandum of Incorporation (MOI)
To ensure continuity of the Board of Directors, the Memorandum of Incorporation (MOI) of the ACFE
SA was amended as follows:
- The current two (2) year term of directors was extended to a three (3) year term.
- Board positions pending availability were earmarked for the chairmen of the Regional Committees
in South Africa. Due to limited availability, a decision was made to incorporate the chairmen of the
4 biggest committees by number of members. The two smaller regions will attend the board
meetings and activities as invitees and will be incorporated in 2017 when more board positions
become available.
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Conclusion
The ACFE SA continues to drive growth, enhance, and improve member services, and increase
events for both continuous learning, as well as networking social events.
Given the current business and economical environments, we are pleased with the achievements of
the ACFE SA during the past 12 months.
OVERVIEW OF THE ORGANISATION: The Association of Certified Fraud Examiners is an international, professional organisation dedicated
to fighting fraud and white-collar crime. We are registered as a professional body by the South African
Qualifications Authority (SAQA) as per the requirements set out in the National Qualifications
Framework Act (NQF Act).
The ACFE SA is a Chapter (Chapter 91) forming part of the ACFE International with the responsibility
to look after the Ethical and Professional standards in South Africa and the countries it administers.
We have globally more than 85 000 members, locally more than 6500 full members and 11 500
members on our database. Being a member of the ACFE and ACFE SA has become a requirement
in both the public and private sector and the CFE designation is a sought after designation.
We continually research and develop new publications, self-study products, and cutting-edge fraud
training conferences designed to educate and prepare Fraud Examiners for the challenges they face.
The ACFE’s Research and Knowledge base is of the highest standard, and is continually being
updated. The ACFE Code of Ethics and Professional Standards are internationally accepted.
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MISSION: “Fraud is the daughter of greed.” ~Jonathan Gash
The mission of the ACFE is to reduce the incidence of fraud and white-collar crime and to assist the
membership in fraud detection and deterrence. To accomplish our mission, the ACFE:
Provides bona fide qualifications to Certified Fraud Examiners through administration of the CFE
International Examination (Advanced Certificate: Fraud Examination) and the CFE Learnership
Program (Advanced Certificate: Certified Forensic Practitioner). Both these courses are registered
with SAQA on an NQF7 level.
Sets high standards for admission, including demonstrated competence through mandatory
continuing professional education.
Requires members to adhere to a strict code of professional conduct and ethics.
Serves as the international representative for Certified Fraud Examiners to business, government
and academic institutions.
Provides leadership to inspire public confidence in the integrity, objectivity, and professionalism of
Certified Fraud Examiners.
GOAL: “Begin with the end in mind.” ~Stephen Covey
Our goal is to help, encourage and create an ethical, value-driven environment in reducing the
incidence of fraud and white collar crime in our daily working environment.
Our immediate specific goals include the providing of:
Networking opportunities
Practical training
Technical updates
Ongoing updates of what is happening in the forensic industry and the immediate situation we
are currently facing
Regulation of the Forensic Profession
Setting of ethical and professional standards
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TRANSPARENCY AND ACCOUNTABILITY:
As a professional body, the ACFE promotes transparency in our interactions with the relevant
Stakeholders, and recognise our accountability to the members of the ACFE and the public of South
Africa. Everything done within the ACFE SA will be open for anyone who has a question or enquiry
regarding the actions taken by the ACFE SA.
PARTICIPANTS IN THE RESPECTIVE INDUSTRIES
The ACFE SA has been involved in the King IV Committee for the past 2 years and provide our
knowledge and advice where needed and required. The King IV conference will be taking place the
1st of November 2016 where the new KING IV report will be released.
The ACFE SA further takes part in the Anti-intimidation and Ethical Practices Forum (AEPF), an
initiative aimed at dealing with, amongst others, challenges faced by members who became whistle-
blowers in South Africa.
The ACFE SA is currently in the process of registering with SARS as a professional body and with
the QCTO as an Assurance Quality Partner. We are in the fortunate position of being accepted and
registered with the QCTO as a Development Quality Partner.
BOARD OF DIRECTORS:
The Board of Directors consist of 14 passionate individuals responsible for ensuring the continued
growth of the forensic profession. Board members contribute their time and resources without
compensation to the ACFE and ACFE SA, assisting to grow the international footprint of the ACFE.
There have been a few changes made to the Board structure to ensure the respective regional
committees gets more involved, to ensure the ACFE SA moves forward. The Board has also proposed
changes to the ACFE SA’s current Memorandum of Incorporation.
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The ACFE SA Board of Directors felt that they needed more involvement from those working with our
members in the various regions, getting them involved in the decision making process and receiving
direct feedback from the regions on the member’s needs. We believe that this will ensure more growth
in the regions as members now would have direct access to the ACFE SA Board members.
There were 5 (five) positions available in 2016. To enable members to stand for some of these
positions, the Board decided to fill only 4 of the positions this year with regional representation, and
have one of these positions open for our other members. The Board has decided on the following
regions: Johannesburg, Pretoria, Western Cape and the KwaZulu Natal. This decision was made to
get those involved with the largest representation in a geographical area.
The Board has decided to extend this opportunity to the Central and East London regions, until next
year when we will have 2 formal positions opening, to attend our Board meetings taking place in
future.
The Board of Directors serve on the Board for three (3) consecutive years where after they need to
be re – elected before being able to continue as a Board member of the ACFE SA.
The Executive Committee (Exco) currently consist of ten (10) Directors focusing on the operational
aspects of the ACFE SA.
Our election process consists of nominations received from our members where after those with
voting rights have the ability to cast their vote via a formal voting ballot on the ACFE SA website
deciding who will serve on the ACFE SA Board of Directors.
The number of votes dedicated to each designation is as follows:
Honorary member: 10 votes
CFE: 10 votes
Associates: 8 votes
Affiliates: 1 vote
Only paid - up ACFE SA members will have the opportunity to vote for their chosen nominee.
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Our Board’s main functions are:
Setting of the strategic objectives of the ACFE SA
Ensuring that the ACFE SA staff keeps meeting the goals and objectives set
Ensuring the financial wellbeing of the ACFE SA
Preparation of the Integrated Report
Risk management
Duty to exercise skill and care
Execute any and all powers for its proper purpose
Independent judgement in decision making
Sustainability of the organisation
In order for the Board to meet the aforementioned responsibilities and ensuring there is no conflict of
interest, internal controls are found in our Guidelines for ACFE SA Board of Directors, as well as other
relevant documents, which need to be completed and signed by each Director serving on the ACFE
SA Board of Directors. The Board is required to complete a conflict of interest document every six
months to ensure the board stay inside the structured guidelines. This provides reasonable
assurance, in a cost effective manner that the assets of the ACFE SA are safeguarded and that
transactions and actions are performed and recorded in accordance with our policies and procedures.
The roles of the President and CEO are separate, with a clear division of responsibilities to ensure a
balance of power and authority between them.
Except for the CEO, all Directors of the Board are non-executive Directors and do not receive any
remuneration outside of reimbursement for out of pocket expenses.
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ACFE SA PROFESSIONAL STANDARDS:
The ACFE is an association of professionals committed to performing at the highest level of ethical
conduct. Members of the Association pledge themselves to act with integrity and to perform their
work in a professional manner.
Members have a professional responsibility to their clients, public interest and each other; a
responsibility that requires subordinating self-interest to the interests of those served.
These standards express basic principles of ethical behavior to guide members in the fulfilling of their
duties and obligations. By following these standards, all Certified Fraud Examiners will be expected,
and all Associate members will strive, to demonstrate their commitment to excellence in service and
professional conduct.
BOARD REPORT OVERVIEW
Contributions made to the ACFE SA by the Board of Directors throughout the year amongst others
consisted of the following:
Continually strive to market the ACFE SA, ACFE Africa regions and ACFE International.
Contributed significantly to the Fraud Examination by advocating the establishment of the
Public Sector Fraud Examiners’ Forum and helping that it be affiliated to the ACFE SA.
Meet with Chapter members of Botswana, Zambia, Namibia, Cameroon, Malawi and
Zimbabwe confirming the SA Chapters commitment to support and grow the Africa Chapter
through collaboration and teamwork across all borders.
ACFE AFRICA:
The ACFE SA submitted a proposal for the ACFE SA to run under ACFE Africa, this will provide the
ACFE SA with more tools to work in Africa and grow as a professional body.
The ACFE SA will still go on as usual business, but the ACFE Africa will offer the Forensic industry
many more opportunities.
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ADVOCACY:
During the past year, the ACFE SA has dedicated a lot of time in growing the brand of the ACFE
across Africa. In addition, with the Africa MoU’s we signed last year this year we became a few African
countries richer namely – Cameroon, Zambia and we’re looking to re-unite with Namibia. We are in
the process of signing an MoU with UNISA and we are also in the process of working towards a long
and prosperous relationship with JUTA.
Last year, during the International Fraud Awareness week, we launched a Lesotho committee and
are in the process of signing a MoU with Lesotho.
KEY VALUE ATTRIBUTES
1. Human Capital:
Human capital is our most important resource and the strength of our organisation and the growing
pace depends on the people we employ. When we decided to expand on our staff complement, we
focused on recruiting people who have the necessary skills and experience, knowing we do not have
the luxury of time on hand to train them, to do what they are supposed to do.
Since March 2015, the ACFE SA appointed three new employees. In August 2016, the ACFE SA
appointed an employee who focuses on communication and the editing of all ACFE content which
includes reports, emails, and marketing. This helps to ensure that professional language is used at
all times and to guarantee that we offer our members a more service driven professional service.
During the appointment process, we looked for the following attributes:
The skills of the employee, taking the position applying for into consideration
Previous experience
Ethical and moral values
Comparing the job specifications and salary range with that of other professional bodies
Seeing that our financial year ends on 31 July each year, the CEO, together with the ACFE SA
Treasurer, provides a proposed budget together with recommendations on increases to the Board of
Directors for their consideration.
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Annual increases are based on the following:
Performance of the employee during the year evaluated according to their respective KPA’s
The Board of Directors then debate the proposed salaries presented by the CEO taking into
consideration the KPA’s of the staff, market related salaries and the financial status of the
ACFE SA
The salary increases are then communicated to staff in writing as soon as the Board has
come to a final decision
Annual increases are effective from August of each year and bonus is paid during November
Employees need to provide for their own pension and medical aid
The ACFE SA contribute the following to its employees’ salaries:
Basic salary
Bonus
Employee and employer deductions as required by law (e.g. PAYE & UIF)
An independent company, tasked to do salary comparisons, is currently reviewing the salaries. Their
report will be handed to the newly appointed Board of Directors during the December meeting.
2. Members:
The ACFE is a members organisation and both the wellbeing, as well as the sustainability requires
continued development, growth and keeping pace with change. In terms of membership, the following
numbers are of importance
3. Member Growth - Annual figures 1 August 2015 – 30th of July 2016:
We noticed a significant growth in membership over the last year:
CFE’s Growth of 24.30%
Associates Growth of 23.7%
Affiliates Growth of 14.15%
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Our overall membership grew by 17.84% proving the need for professionalisation, regulation of the
profession and the need to employ people with the necessary skills to prevent, detect and investigate
fraud and white collar crime.
0
200
400
600
800
1000
1200
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16
CFE's
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16
Mem
ber
s
Month - 2015 inancial Year
ACFE SA Member Growth
TOTAL CFE's
TOTAL ASS
TOTAL AFF
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The ACFE SA’s goal of having more than a 1000 CFE’s has been reached with the current 1078
CFE’s we have. The ACFE SA is working very hard on projects and initiatives to ensure we meet the
3000 CFE target by 2020 set by the ACFE SA Board of Directors.
The ACFE SA was allowed to provide companies with the ability to take corporate membership with
the benefit to register their employees with the ACFE SA and pay a reduced annual fee. In doing so,
companies provide their employees with the opportunity to belong to a professional body. During the
period 2015/2016, the ACFE SA has experienced a growth of 2% in corporate membership and
proudly list those who support the ACFE SA at the end of this document.
The ACFE SA has gone so far as to offer numerous corporate members the opportunity to request a
combined invoice enabling the corporate members the opportunity to pay their ACFE SA and ACFE
membership through the ACFE SA in rand value.
Our members and corporate members receive numerous benefits in being part of our membership.
Some of the benefits are listed below:
Access to a network of experienced professionals
A training framework for practitioners with “how to” guidance and formal standards
A NQF level 7 - SAQA qualification once you pass your CFE International Exam
Regular discussion forums on issues relevant to the local environment
Annual workshops on fraud examinations
Discounted participation at a number of CFE Endorsed conferences and training seminars
Regular training that qualify for CPE / CPD (continuing professional education/ development)
points
A monthly electronic newsletter
A Career Centre
Seminars and conferences at a fraction of the cost
Ex Officio Commissioner of Oath status to all CFE’s
CFE’s belonging to the local Chapter are also uploaded onto the National Professional
Database hosted by SAQA
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4. Education and Training:
The ACFE SA offers numerous training courses and regional events all over the country. This
provides members of the ACFE SA, and non-members, the opportunity to network, mentoring
opportunities, continuing professional education, and helps with promoting fraud awareness.
We have increased our training events in all the regions and have expanded, now into other countries
like Botswana, Malawi, Namibia, Lesotho, Zambia and Zimbabwe and we are looking for applicable
dates to host workshops in Cameroon (in conjunction with the Cameroon chapter) and Swaziland.
We hope to be able to expand even further in all the regions ensuring that our members have the
benefit of obtaining the relevant training in their own province to meeting the required 20 hours CPE.
For this reason, we have also partnered with other professional bodies like SAICA, SAIPA and the
IIA SA.
Every year the ACFE SA structures a training calendar for that specific year to ensure that training is
available when the need for it arises
OFO CODE:
The NQF provides for a fully integrated and needs driven occupational learning system that will meet
the needs of the industry. To achieve this, extensive use is made of an "Organising Framework for
Occupations' (OFO). The OFO sets the base for linking various occupations to specific skills and
assists in identifying further training needs. The OFO is a skill-based classification system, which
encompasses all occupations in the South African context. The classification of occupations is based
on a combination of skill levels and skills specialisation which makes it easy to locate a specific
occupation within the framework. The ACFE SA has successfully been registered on the Organising
Framework for Occupations with the following unit group-2015-2422 Policy Administration
Professionals - Fraud Examiner.
OCCUPATIONAL QUALIFICATION:
Occupational qualifications define the learning component required for occupational competence and
each unit standard identifies
the knowledge and theory component and standard
the practical skills standard
the work experience standard
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ACFE SA is undergoing the development of the occupational qualification as the Development
Quality Partner with the QCTO, planning to register the Occupation Fraud Examiner at NQF level
8.
5. Certification:
The ACFE Certified Fraud Examiners International exam has been registered on the NQF by SAQA
at NQF level 7. This makes the designation the first of its kind to be both internationally and locally
recognised as the standard for a Forensic Investigator/Auditor. This Advanced Certificate: Forensic
Practitioner is available to all candidates who successfully complete the CFE Exam (International
version) assisting them to not only receive a qualification, but also be recognised as professionals on
the National Professional Database administered by SAQA, and be recognised as Ex Officio
Commissioners of Oaths.
6. Regional committees:
The objective and mandate for Regional Interest groups is not to create separate Chapters or legal
entities.
The objective of these groups is to facilitate regional training events and networking functions in
certain geographical areas, supported by the national (ACFE SA) Chapter. The Regional Committee
act as the ACFE SA ambassador/representative in the specific region.
The ACFE SA has managed to establish a regional committee in Eastern Cape as well as in Lesotho
during this past year.
7. Development and growth of the African continent:
In terms of growth into Africa, the ACFE SA continues to assist with the launch of new Chapters,
exposure, marketing and other relevant aspects that are required and agreed upon in the MoU’s
signed with country representatives.
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8. Conference:
The Annual African Fraud Conference is being held each year and is the second largest Anti-Fraud
Conference in the world. This year it will be hosting the 9th Annual ACFE Africa Fraud Conference
and Exhibition.
The focus of the AGM is to give anti-fraud professionals the opportunity to expand their existing fraud
knowledge and develop new skills and techniques. This year’s sessions feature world-renowned
speakers with presentations that cover almost every aspect of fraud, providing relevant skills that can
be applied immediately. The attendees will learn practical solutions that will become part of their skills,
enabling them to do their job more efficiently and effectively. In addition, they will earn up to 20 hours
of Continuing Professional Education (CPE).
The conference remains our biggest annual event and most of our income is generated from this
event. We, therefore, need to thank all our members for their continued support in registering and
attending this prestigious event.
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RISKS – (OPPORTUNITIES AND THREATS)
This section answers the question: What are the risks, opportunities and threats that we are currently
facing and how are we dealing with them?
2015 Challenges – and how The ACFE SA manages to resolved the challenges faced
Challenges:
1. Upgrading Information Technology Platform
The information technology resources in use by the South African Chapter were significantly outdated
and it was necessary to re-evaluate the information technology needs of the Chapter. We have
addressed the risk of becoming outdated and securing our members data by acquiring a new platform,
which we will be launching formally during the upcoming ACFE African Conference. We are sure that
this new platform will not only solve most of our administrative concerns, but also ensure a more user
friendly service to our members.
2. Membership Database Audit:
The South African Chapter has a significant database but queries have been raised about the
accuracy thereof, and the value that this information has to the Board to make strategic decisions.
Initial examinations of the date revealed significant discrepancies and a decision was made to conduct
a comprehensive membership data audit to insure the integrity of our data, as well as to comply with
certain requirements in terms of the Protection of Personal Information Act.
Solution -
The ACFE SA has moved over to a new website – Wild Apricot where each delegate has the
opportunity to change their personal information if needed. The ACFE SA has a new mobile
application available that offers the members the ability to amend their personal information, with a
click of a button.
This system ensures that the membership data base is more accurate and updated.
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3. Challenges regarding our membership fees:
After cleaning our member database, we have seen that in previous years a number of invoices
never went out to the correct mail addresses. This had a direct impact on our income, which we
now believe is rectified. We also removed those from our database who were registered as
members and receiving the benefits without making payment. We have increased our membership
fees with the agreed 10% and have seen a 23% growth in membership, which we believe was due
to the steps taken by management. - Resolved
Opportunities:
1. Integrated Membership Management System
In 2014, a decision was made to explore new technologies to better serve our members and improve
the effectiveness and efficiency of the South African Chapter. Up until now, most of the information
systems in use have been adhoc and manual.
It was decided to invest in an integrated membership management system with Wild Apricot being
selected as the platform of choice. A focus of this year was the customisation of this platform, the
testing thereof, the integration of our member data (once audited), and the deployment of this
platform.
With the adoption of the Wild Apricot platform to host the Chapters Integrated Membership
Management System, a standard systems development process was followed in customising the
system to meet the needs of the Chapter. This included:
the development of a database schema.
the determination of standard data fields.
the creation of validation and verification rules in the database to protect, the integrity of the
data within the database.
the testing of system functionality.
loading test data.
alpha testing.
beta testing.
28 | P a g e
The Integrated Membership Management System is now fully functional and had been launched in
February 2016.
The ACFE SA also decided to invest in our own Mobile Application to offer all ACFE SA members the
opportunity to have access to all relevant information (training information, changing of personal
information, CPE points etc.) with only a click away.
This year the ACFE SA will also be making use of QR codes regarding the registration process during
the conference and other training sessions, where members will have the opportunity to scan the
given barcode and register / log their CPE points with the click of a button.
The QR barcodes have also been implemented at all ACFE SA workshops and regional meetings,
and we hope to do away from the traditional manual registration process.
2. Upgrading Information Technology Platform
A comprehensive needs assessment was conducted concerning Information Technology within the
Chapter, which was coupled with an information system. An audit of all the information technology is
currently being deployed within the Chapter.
At the conclusion of this process, the specific needs in terms of new computer hardware were
identified, and a comprehensive procurement process undertaken, which allowed the Chapter to
source all of the computer hardware required, meeting the necessary minimum specifications required
to meet operational needs while still ensuring an open, transparent and cost effective procurement
process
The Information technology platforms, in terms of the computer hardware, are now up to specifications
technology and current. This should meet our operational needs for at least the next two financial
years.
3. Membership Database Audit:
The initial members’ database verification exercise has been conducted and an audit undertaken
matching the electronic data against physical membership forms. We are currently in the final phase
29 | P a g e
of the verifying and validating the data quality, which is also a legal requirement to comply with certain
aspects of the Protection of Personal Information Act.
This process will involve a final verification conducted in batches where the cleaned data is finally
verified by the members themselves, and lapsed resigned and non-active members removed from
the database required by the protection of Personal Information Act.
This process is integrated with the operation of the Integrated Membership Management System.
The outstanding aspects of the project are as follows, along with the project deadlines and dependent
activities.
4. New Website
Coupled with the new integrated membership management system, is the development of a new
interaction Web 2.0 Chapter website with full membership functionality. This new site is being
developed as part of the Wild Apricot platform.
The new Chapter website forms a part of the new Integrated Membership Management System.
The process of designing the new website has followed a standard web design approach to maximise
the user experience. This included:
setting up customised style sheets.
designing the graphical look at feel of the site.
designing the structure of the website.
transferring and rationalising content from the current website.
the implementation of the membership database backend into the website.
alpha testing.
beta testing
STRATEGIC FOCUS
Our strategic focus is to enhance and broaden the knowledge of all individuals in detecting fraud and
to make them aware of all other fraud activities taking place in our daily working environment.
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STRATEGIC OBJECTIVES
In line with the ACFE’s mission and goal, our overall objectives may be summarised as follows:
To create a framework and principles for all our members detecting fraud and white collar
crime.
To support all Associate members in registering to write the CFE exams and to strive to create
an enabling environment, which allows investigators and other related investigation entities to
grow and contribute to the detection of fraud activities taking place in our daily working
environment.
Issuing and continuously improving our standards for all our training material being presented.
Maintaining corporate governance.
Strategic Alliance Partnerships: We live in an era where no organisation like ours can fulfil its mandate in isolation. Creating strong
partnerships is crucial to the success of the Association. To this end, we have built partnerships with
a number of Professional Bodies listed below. We have decided only to partner with those recognised
as Professional Bodies meeting SAQA’s requirement, per the National Qualifications Framework Act.
Our success further lies in those entities who assist us in sponsoring venues for our meetings and
some have gone as far as covering our catering costs as well. This assisted us to create opportunities
to reduce our training costs and in some instances even host fully sponsored events (free to
members). It would be prudent for us to acknowledge those supporting organisations herein which
include: Bank of Namibia, Discovery, EY, KPMG, Old Mutual, PwC, Sanlam, SNG, Standard Bank,
and the UFS Business School.
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Abbreviation Name of Company
CIPS
Chartered Institute of Procurement and
Supply
CISA Compliance Institute Southern Africa
ESAAG Eastern & Southern African Accountants-
General
Ethics SA The Ethics Institute of South Africa
FPISA
Financial Planning Institute of Southern
Africa
IIA SA Institute of Internal Auditors
IOD SA Institute of Directors in Southern Africa
IRBA Independent Regulatory Board for Auditors
ISACA Information Systems Audit and Control
Association
JUTA JUTA and Company (Pty) Ltd
PSIRA Private Security Industry Regulatory
Authority
SAICA The South African Institute of Chartered
Accountant
SAIPA South African Institute of Professional
Accountants
SAIGA The Southern African Institute of Government
Auditors
WISA Water Institute of Southern Africa
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ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER
OVERALL FINANCIAL REPORT – YEAR ENDED 31 JULY 2016
ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICAN CHAPTER OVERALL FINANCIAL REPORT – YEAR ENDED 31 JULY 2016
OPERATIONS
Income
Membership fees (26.9%), meeting and training sessions (11.8%), and conference revenue (53.4%), continue
to be the Chapter’s primary sources of income.
Membership fees increased by 9.3 % the previous year, reason being partially due to a rate increase but more
so as a result of actual membership base growth of 17.8%. The increase in meetings and training sessions
revenue (16.9%) over 2015 is the result of more training sessions being held, and an overall higher number of
attendees. We further experienced more companies requesting in-house training for groups of employees.
Training charges had not been increased during the year. Conference revenue continues to be the Chapter’s
main source of revenue, subsequently increasing marginally by 22.6%. This increase in conference revenues
was largely a result of higher attendance, with a meager attendance fee increase.
Other sources of income increased by 37.1% over the previous year mainly due to increased revenue from
sales of promotional items and investment income, i.e. interest earned during the year. The ACFE SA has
changed its investment portfolio to ensure maximum return. Good managerial skills have ensured a constant
growth of income.
Total income reflected an overall increase of 19.0% over the previous year at R10 305 015 (2015: R8 658
958).
Expenditure
Expenditure totaled R7 948 162 (2015: R7 513 603), reflecting an increase of 5.8% over the previous year.
The main contributors to the overall increase in expenditure were lease rentals and operating leases with R45
33 | P a g e
730 (16%); marketing and branding costs that increased with R483 334 (137%); provision for credit notes
(membership fees for previous years that have not been received) of R87 353; and travel expenses which
were R145 721. An expanded footprint has resulted in increased travel costs, and continuous marketing to
increase awareness, add to overall costs. The exchange rate fluctuation contributed to this increase. Overall
remuneration costs (including that of the CEO) decreased by 1%, despite the addition of new personnel and
creation of certain administrative posts. During the year a formal salary benchmarking exercise had been
conducted to further inform the Board on the remuneration. The benchmarking indicated that both the CEO’s
and ACFE SA staff remuneration was below the median and needed addressing. The adjustment has been
effected and will be rolled out over the next three (3) years to ensure that remuneration is aligned to market
standards.
Surplus
The Chapter’s net result for the year incurred a surplus of R2 356 835 (2015: R1 145 355). This is largely
attributed to the significant increase of more than R1 million in AGM and Annual Conference fees, resulting
from a record attendance of 880 at the 2015 Conference. Other income sources totaled at R809 499 (2015:
R590 299) because of the continued growth in membership and membership fees.
Considering that a surplus in a non-profit entity that is designed to provide member benefits, it is important, as
a sense-check, to assess the overall reasonableness of the ‘pricing’ of events and member dues. Ignoring the
income from other sources (which are not always within management’s control) and considering the timing of
cash flow impacting the organisation’s liquidity to perform, the surplus of revenue over operating costs
represents 16.3% of total revenue. Thus, just a shade over 16% of the fees from membership dues, meetings
and training, and conference fees were realised in excess of the anticipated costs of the delivery of the services
to our members. In other words, 83.7 cents of each Rand received from members for services were spent on
delivering the services.
FINANCIAL POSITION
Equity
The Chapter’s accumulated surplus available to fund further development initiatives and future operations
amount to R5 988 678 (2015: R3 631 825).
Liabilities
Trade and other payables relate to accounts outstanding at year-end, which would have been incurred in the
ordinary course of operations and amount to R581 065 (2015: R393 045).
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The balance of the amount reflected under current liabilities reflects the income received in respect of annual
membership renewals for the 2016 / 2017 year and Conference Fees received in advance. These amounts
will be released into income in the new financial year.
Assets
Trade and other receivables comprise current and prior year membership, training and conference fees
receivable of R2 276 656 (2015: R1 680 046). The level of receivables has increased significantly when
compared to last year. Management has conducted a detailed assessment as to the collectability of these
receivables and raised additional provision for doubtful debts of R299 800 (2015: R212 447), representing
13.2% of the gross receivables.
The Chapter’s cash balances at year-end amounted to R6 473 719 (2015: R4 152 596) which is significantly
attributable to the income received in advance amount of R2 335 574 (2015: R1 937 225).1 This is held in a
combination of the Chapter’s current account and money-market account based on the relevant cash flow
needs to maximize the interest revenue.
OTHER MATTERS
Taxation
The Chapter is registered as a Public Benefit Organisation (PBO) with the South African Revenue Services
(SARS) for tax purposes and is, as a result, exempt from paying tax in terms of the Income Tax Act.
Going concern
The ability of the Chapter to continue is dependent on the interest shown by members and the continued
financial support of all stakeholders. The Board of Directors have, together with the CEO and his team, devised
plans to continue to have member-focused, value-adding programmes in place to ensure a sustainable entity
and a profession that one can belong to with pride.
The efforts in ensuring administrative and financial stability by the CEO and his team, my fellow Board
members and the various members and external stakeholders is what will ensure a sustainable Chapter. Thank
you to each one of you for your sterling, selfless contributions as the war on fraud and corruption is advanced
to a different level!
Morné Britz
Treasurer
1 Refer to Liabilities
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ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA
CHAPTER (NON – PROFIT COMPANY)
Registration number 1999/014890/08
Annual Financial Statements
For the year ended 31 July 2016
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ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)
Registration number 1999/014890/08
Annual Financial Statements at 31 July 2016
INDEX
The reports and statements set out below comprise the annual financial statements presented to the members:
Index 1
2 General Information
Independent Auditor Report
Directors' Responsibilities and Approval
Directors' Report
3
4 - 5
6 - 7
8 Statement of Financial Position
Statement of Comprehensive Income
Statement of Changes in Equity
Statement of Cash Flows
Accounting Policies
9
10
11
12
Notes to the Annual Financial Statements 13 - 16
The supplementary information presented does not form part of the annual financial statements and is unaudited:
Detailed Income Statement 17 - 18
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ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)
Registration number 1999/014890/08
Annual Financial Statements
For the year ended 31 July 2016
GENERAL INFORMATION
COUNTRY OF INCORPORATION AND DOMICILE
NATURE OF BUSINESS AND PRINCIPAL
ACTIVITIES
South Africa
To serve the community by the promotion of improved fraud detection through
expansion of knowledge and interaction
of its members
DIRECTORS Barnes GW
Britz M De Jager J
Du Plessis SJ
Ferreira D
Le Roux JN
Mampuru NC
Molefe BR
Nkosi ST
Smit MM
Smit BA Strydom CJ
Van Tonder L
May DG
107 Nicolson Street
Nicolson House
Block B Brooklyn Office Park
Brooklyn
REGISTERED OFFICE
0181
BANKERS
AUDITOR
First National Bank
Fourie & Botha
Chartered Accountants (SA)
COMPANY SECRETARY
LEVEL OF ASSURANCE
Le Roux J
The financial statements have been audited in accordance with the applicable sections of the Companies Act 71 of 2008.
PREPARER The financial statements were independently prepared by Equality
Accounting Dynamics CC.
NPO REGISTRATION NUMBER
091-312-NPO
38 | P a g e
I have audited the annual financial statements of Association of Certified Fraud Examiners South Africa Chapter (Non-Profit Company) set out on pages 8 to 16 which comprise the statement of financial position at 31 July 2016, the statement of comprehensive income, the
statement of changes in equity and the statement of cash flows for the year then ended, and the notes, comprising a summary of
significant accounting policies and other explanatory information.
To the Shareholder of Association of Certified Fraud Examiners South Africa Chapter (Non-Profit Company)
Directors' Responsibility for the Financial Statements
3.
INDEPENDENT AUDITOR'S REPORT
The company’s directors are responsible for the preparation and fair presentation of these financial statements in accordance with
International Financial Reporting Standards for Small and Medium-sized Entities and the requirements of the Companies Act of South
Africa, for determining that the basis of preparation is acceptable in the circumstances and for such internal control as the directors
determine is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud
or error.
Auditor's responsibility
My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with
International Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance whether the financial statements are free of material misstatement.
An audit includes performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The
procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the annual
financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the
entity's preparation and fair presentation of the annual financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well
as evaluating the overall presentation of financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Prior year audited by a predecessor auditor
The financial statements of the prior year were audited by a predecessor auditor on (date).
Fourie & Botha Chartered Accountants (SA) 28 September 2016
____________________________
Per:
Registered Auditor
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ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)
Registration number 1999/014890/08
Annual Financial Statements at 31 July 2016
The directors are required by the South African Companies Act to maintain adequate accounting records and are responsible for the
content and integrity of the annual financial statements and related financial information included in this report. It is their responsibility to
ensure that the annual financial statements satisfy the financial reporting standards as to form and content and present fairly the
statement of financial position, results of operations and business of the company, and explain the transactions and financial position of
the business of the company at the end of the financial year. The annual financial statements are based upon appropriate accounting
policies consistently applied throughout the company and supported by reasonable and prudent judgements and estimates.
DIRECTORS' RESPONSIBILITIES AND APPROVAL
The financial statements have been audited by the independent auditing firm, Fourie & Botha Chartered Accountants (SA), who has been
given unrestricted access to all financial records and related data, including minutes of all meetings of shareholders, the board of directors
and committees of the board. The directors believe that all representations made to the independent auditor during the audit were valid
and appropriate. The external auditor’s unqualified audit report is presented on page 3.
The directors acknowledge that they are ultimately responsible for the system of internal financial control established by the company and
place considerable importance on maintaining a strong control environment. To enable the directors to meet these responsibilities, the
board sets standards for internal control aimed at reducing the risk of error or loss in a cost effective manner. The standards include the
proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of
duties to ensure an acceptable level of risk. These controls are monitored throughout the company and all employees are required to
maintain the highest ethical standards in ensuring the company's business is conducted in a manner that in all reasonable circumstances is
above reproach.
The focus of risk management in the company is on identifying, assessing, managing and monitoring all known forms of risk across the
company. While operating risk cannot be fully eliminated, the company endeavours to minimise it by ensuring that appropriate
infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints.
The directors are of the opinion, based on the information and explanations given by management that the system of internal control
provides reasonable assurance that the financial records may be relied on for the preparation of the annual financial statements.
However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement
or loss. The going-concern basis has been adopted in preparing the financial statements. Based on forecasts and available cash resources
the directors have no reason to believe that the company will not be a going concern in the foreseeable future. The financial statements
support the viability of the company.
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ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)
Registration number 1999/014890/08
Annual Financial Statements at 31 July 2016
DIRECTORS' RESPONSIBILITIES AND APPROVAL
The annual financial statements as set out on pages 8 to 16 were approved by the board on 28 September 2016 and were signed on their behalf by:
___________________________
Du Plessis SJ
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ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)
Registration number 1999/014890/08
Annual Financial Statements at 31 July 2016
DIRECTORS' REPORT
The directors present their report for the year ended 31 July 2016.
1. Review of activities
Main business and operations
The principal activity of the company is to serve the community by the promotion of improved fraud detection through expansion of
knowledge and interaction of its members and there were no major changes herein during the year.
The operating results and statement of financial position of the company are fully set out in the attached financial statements and do not
in our opinion require any further comment.
2. Going concern
The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes
that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent
obligations and commitments will occur in the ordinary course of business.
3. Events after reporting date
All events subsequent to the date of the annual financial statements and for which the applicable financial reporting framework require
adjustment or disclosure have been adjusted or disclosed.
4. Directors' interest in contracts
To our knowledge none of the directors had any interest in contracts entered into during the year under review, however, Mr D Ferreira
and Mr C Strydom did receive professional fees from the ACFE SA for services rendered.
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ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)
Registration number 1999/014890/08
Annual Financial Statements at 31 July 2016
DIRECTORS' REPORT
5. Directors
The directors of the company during the year and to the date of this report are as follows:
Barnes GW
Britz M
De Jager J
Dhanlall R (Resigned 15 September 2015
Du Plessis SJ
Ferreira D
Jordaan J (Resigned 15 September 2015
Le Roux JN
Mampuru NC
Molefe BR
Mxunyelwa Z (Resigned 15 September 2015)
Nkosi ST
Smit BA
Smit MM
Strydom CJ
Van Tonder L
May DG (Appointed 15 September 2015)
6. Secretary
The company's designated secretary is Le Roux J.
7. Auditor
Fourie & Botha Chartered Accountants (SA) was the auditor for the year under review and will continue in office as per section 90 of the Companies Act 71 of 2008.
43 | P a g e
ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)
Registration number 1999/014890/08
Annual Financial Statements at 31 July 2016
Statement of Financial Position
2 65,710 120,999
Figures in R Note(s) 2016 2015
1.
Assets
Non-Current Assets
Property, plant and equipment
Current Assets
Inventories 3
4
5
Trade and other receivables
Cash and cash equivalents
Total Assets
Equity and Liabilities
2. Equity
Accumulated funds
Current Liabilities
Trade and other payables
Income received in advance
6
Total Equity and Liabilities
8,454
1,680,046
4,152,596
5,841,096
89,232
2,276,656
6,473,719
8,839,607
5,962,095 8,905,317
3,631,825 5,988,678
393,045
1,937,225
2,330,270
581,065
2,335,574
2,916,639
5,962,095 8,905,317
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ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)
Registration number 1999/014890/08
Annual Financial Statements at 31 July 2016
Statement of Comprehensive Income
8,068,659 9,495,516
529,894
(7,513,603)
1,084,950
Figures in R Note(s) 2016 2015
Revenue
Other income 649,098
(7,948,162)
2,196,452
Operating costs
Operating surplus 8
Finance income
Total comprehensive income for the year
160,401 60,405
1,145,355 2,356,853
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ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)
Registration number 1999/014890/08
Annual Financial Statements at 31 July 2016
Statement of Changes in Equity
Accumulated
Figures in R funds Total
Balance at 1 August 2014
Total comprehensive income for the year
Balance at 1 August 2015
Balance at 1 August 2015
Total comprehensive income for the year
Balance at 31 July 2016
10
2,486,470
1,145,355
3,631,825
2,486,470
1,145,355
3,631,825
3,631,825
2,356,853
5,988,678
3,631,825
2,356,853
5,988,678
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ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)
Registration number 1999/014890/08
Annual Financial Statements at 31 July 2016
Statement of Cash Flows
Figures in R Note(s) 2016 2015
Cash flows from operating activities
Surplus for the year
Adjustments for:
Depreciation of property, plant and equipment
Investment income
(Increase)/decrease in inventories
Increase in trade and other receivables
Increase in trade and other payables
Cash generated by operating activities
Interest received
Net cash from operating activities
Cash flows from investing activities
Property, plant and equipment acquired
Proceeds on disposals of property, plant and equipment
Net cash utilised in investing activities
Increase in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year 5
2,356,853 1,145,355
55,889
(160,401)
(80,778)
50,833
(60,405)
1,264
(596,610)
586,369 (938,440)
910,735
1,109,342
60,405
2,161,322
160,401
2,321,723 1,169,747
(601)
1
(114,972)
-
(600) (114,972)
2,321,123
4,152,596
6,473,719
1,054,775
3,097,821
4,152,596
47 | P a g e
ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)
Registration number 1999/014890/08
Annual Financial Statements at 31 July 2016
Accounting Policies
1. Summary of significant accounting policies
1.1 Revenue recognition
These financial statements have been prepared in accordance with the International Financial Reporting Standards for Small and Medium-
sized Entities issued by the International Accounting Standards Board. The principal accounting policies applied in the preparation of these
financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Revenue is recorded in the financial statements at the date amounts are invoiced in the accounting records.
1.2 Property, plant and equipment
Items of property plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment
losses.
Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred
subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of
property, plant and equipment, the carrying amount of the replaced part is derecognised.
Depreciation is charged so as to allocate the cost of assets less their residual values over their estimated useful lives, using the
straight-line method. The following rates are used for the depreciation of property, plant and equipment:
Cash and cash equivalents includes cash on hand, demand deposits and other short-term highly liquid investments.
Computer Equipment
Computer Software
Furniture & Fittings
33.33%
50.00%
20.00%
1.3 Inventories
Inventories are stated at the lowest cost and selling price is at a lesser cost to complete and sell. Cost is calculated using the first-in, first-out (FIFO) method.
1.4 Cash and cash equivalents
1.5 Financial instruments
Financial instruments on the statement of financial position comprise of trade and other receivables, cash and cash equivalents, trade and other payables and income received in advance. These instruments are carried at their expected fair values.
48 | P a g e
ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)
Registration number 1999/014890/08
Annual Financial Statements at 31 July 2016
Notes to the Annual Financial Statements
Figures in R 2016 2015
2. Property, plant and equipment
2016 Carrying
value
2015 Carrying
value
Accumulated depreciation
Accumulated depreciation Cost Cost
Owned assets
Furniture & fittings
Computer equipment
Computer software
Carrying value at
beginning of
2016 Carrying
value at end
of year year Additions Disposals Depreciation
Owned assets
Furniture & fittings
Computer equipment
Computer software
Carrying 2015 Carrying
value at end
of year
value at beginning of
year Additions Disposals Depreciation
Owned assets
Furniture & fittings
Computer equipment
Computer software
3. Inventories
Inventories comprise:
Promotional gear and DVD's
13
104,347 89,534
163,581
44,935
14,813 104,347 83,131
124,406
34,624
21,216
214,471
44,942
50,890
7
213,871
44,942
89,465
10,318
363,760 298,050 65,710 363,160 242,161 120,999
The carrying amounts of property, plant and equipment can be reconciled as follows:
21,216
89,465
10,318
-
600
1
(1)
-
(6,402)
(39,175)
(10,312)
(55,889)
14,813
50,8
907
120,999 601
-
(1) 65,710
-
-
-
-
(10,020)
(22,880)
(17,933)
(50,833)
21,216
89,465
10,318
120,999
16,301
18,992
21,567
56,860
14,935
93,353
6,684
114,972
89,232 8,454
49 | P a g e
ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)
Registration number 1999/014890/08
Annual Financial Statements at 31 July 2016
Notes to the Annual Financial Statements
Figures in R 2016 2015
4. Trade and other receivables
Trade debtors 962,036
84,620 Sundry debtors
Prepaid expenses
5. Cash and cash equivalents
Favourable cash balances
Bank balances
Cash
6. Trade and other payables
Sundry creditors
Trade creditors
Value Added Tax
7. Income tax expense
The organisation is exempt from normal tax in terms of Section (10) of
the Income Tax Act, hence no provision for tax is made.
624,238
82,201
1,230,000
2,276,656
973,607
1,680,046
6,472,719
1,000
4,152,114
482
6,473,719 4,152,596
65,112
362,029
153,924
581,065
73,988
177,888
141,169
393,045
50 | P a g e
ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)
Registration number 1999/014890/08
Annual Financial Statements at 31 July 2016
Notes to the Annual Financial Statements
2016 Figures in R 2015
8. Operating surplus
Operating surplus is arrived at after taking into account the following items:
Income
Exchange rate profits on foreign exchange
Expenditure
Exchange rate losses on foreign exchange
Depreciation
Owned assets
Furniture and fittings
Computer equipment
Computer software
Auditor's remuneration
Audit fees
-current
Directors' emoluments
Executive - De Jager J
- Remuneration
Employee salaries
Operating lease charges
Premises
- 2,133
19,321 -
6,402
39,175
10,312
55,889
10,020
22,880
17,933
50,833
2,550 2,400
1,489,975
1,040,509
1,271,095
1,289,025
285,476 331,206
51 | P a g e
ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)
Registration number 1999/014890/08
Annual Financial Statements at 31 July 2016
Notes to the Annual Financial Statements
Figures in R 2016 2015
9. Related party transactions
Amounts owed (to) / by the related party at year-end Transactions
Name 2016 2015 2016 2015
D&S Forensic Investigations CC - Ferreira D
DFIRLABS (Pty) Ltd - Jordaan J
Law@Work - Strydom C
16,000
-
58,138
178,979
-
-
-
-
-
-
- 18,240
The above mentioned directors rendered a professional service through their own company/close corporation and received remuneration from the ACFESA.
52 | P a g e
ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)
Registration number 1999/014890/08
Annual Financial Statements at 31 July 2016
Detailed Income Statement
2016 Figures in R 2015
Gross Revenue
Membership fees 2,770,981
1,218,093
5,506,442
9,495,516
2,535,557
1,042,041
4,491,061
8,068,659
Meetings and training sessions
AGM and annual conference fees
Other Income
Sales 269,195
160,401
-
118,274
60,405
20,175
110,100
279,212
2,133
Investment income
Sponsorships, donations and fundraising
Branding and marketing income
ACFE US Contribution
Profit on foreign exchange
129,574
250,329
-
809,499 590,299
10,305,015 8,658,958
The supplementary information presented does not form part of the annual financial statements and is unaudited
53 | P a g e
ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)
Registration number 1999/014890/08
Annual Financial Statements at 31 July 2016
Detailed Income Statement
Figures in R 2016 2015
2.
Expenditure
Accounting fees
AGM and annual conference fees
Assessment rates and municipal charges
Auditor's remuneration
Bank charges
Computer expenses
Conference and training costs
Depreciation - Tangible assets
Discount allowed
Emoluments - Directors
Entertainment and consumables
Fines and penalties
Gifts
Insurance
Lease rental on operating lease
Legal expense
Loss on foreign exchange
Marketing and branding costs
Postage
Printing and stationery
Professional fees
Provision for credit notes
Repairs and maintenance
Salaries
Security
Telephone and fax
Training
Travel - International
Travel - Local
Total comprehensive income for the year
49,366
2,363,651
83,697
2,550
39,435
2,345,763
86,821
2,400
29,143
113,809
451,266
55,889
101,360
1,489,975
20,317
-
25,455
71,538
613,751
50,833
133,695
1,271,095
31,560
49,974
8,520 2,964
17,073
331,206
63,781
19,321
835,287
30,203
65,839
-
14,749
285,476
31,500
-
351,953
15,391
37,476
221,223
212,447
8,760 299,800
-
1,289,025
7,909 1,040,509
7,893
102,087
42,143
178,778
150,255
7,948,162
2,356,853
93,140
30,402
72,242
111,070
7,513,603
1,145,355
The supplementary information presented does not form part of the annual financial statements and is unaudited
54 | P a g e
ACFE SA CORPORATE MEMBERSHIP LIST 2016
Organisation Members CFE's
Absa Bank (Pty) Ltd 107 7
AngloGold Ashanti Ltd 17 4
Analytical Forensic Investigation Service 7 0
Arms-audit and risk management Solutions Pty Ltd 17 0
Auditor General of South Africa 61 4
Auditor General of Namibia 62 0
Bayport Financial Services 18 2
Basileus Consilium Professional Services 15 1
Bokang Consulting Services 4 0
British American Tobacco South Africa 15 0
Capitec Bank 21 4
EOH Forensic Services 69 21
Cell C 2 1
Combined Private Investigations CC 26 0
Comperio Forensic Services (Pty) Ltd 10 2
Consumer Profile Bureau (Pty) Ltd 14 0
CYANRE The Computer Forensic Lab 14 0
Deloitte & Touche 66 17
Department of Correctional Services 22 2
Department of Labour (Compensation Fund) 8 0
Department of Rural Development & Land Reform 18 0
Discovery 71 28
Duja (PTY) LTD 10 0
EMS Advisory (Pty) ltd 13 0
ENS Forensics (Pty) Ltd 16 4
Ernst & Young 94 12
Eskom Holdings Ltd 47 16
eThekwini Municipality 41 5
Financial Intelligence Centre 33 2
Fides Cloud Technologies (Pty) Ltd (iFacts) 2 0
First National Bank 113 7
Free State Provincial Treasury 143 7
55 | P a g e
Fundudzi Forensic Services (Pty) Ltd 6 0
Gauteng Province: Human Settlements 9 3
Gobodo Forensic & Investigative Accounting 33 10
Gauteng Provincial Treasury 39 4
Government Employee Medical Scheme (GEMS) 7 0
Government Pension Administration Agency 15 3
Hollard Life Assurance Co Ltd 32 4
Ideco Biometric Security Solutions 5 0
JGL Forensic Services Pty Ltd 8 2
KPMG Service (Pty) Ltd 208 8
KZN Provincial Treasury 18 2
Lesotho Revenue Authority 42 1
Liberty Group Ltd 30 7
Mazars Forensic Services (Pty) Ltd 8 3
Medscheme/Afrocentric Health 20 1
Mpumalanga Gambling Board 29 0
Mr Price Group Ltd 21 1
MTN 15 2
MultiChoice Support Services (South Africa) 14 0
Mutual & Federal 42 2
Nexus Forensic Services (Pty) Ltd 26 7
Nexia SAB&T 19 1
Office of the Public Protector 65 6
Office of the Public Service Commission 38 2
Old Mutual Group Forensic Services 39 24
Open Water 19 0
Outsurance 108 2
Procure 2 Pay Intellection 6 0
PWC 117 28
Prodogy SA (PTY) LTD 1 0
PSIRA 36 0
PSMA Holdings (pty)l td 23 0
Qhubeka Forensic Services 38 1
Risk Diversion 9 1
RW Forensic and Consulting 4 0
56 | P a g e
Road Accident Fund 47 0
SABC Ltd 8 3
SABRIC 18 4
SAICB 11 4
SANDF Department of Defense 20 2
SANLAM LIFE INSURANCE LTD 37 4
Santam 15 9
SARS: Enforcement 418 15
SASOL Group Assurance Services 7 1
SASSA 70 0
Sekela Consulting 11 4
SITA SOC Ltd Internal Audit 16 2
SizweNtsalubaGobodo 35 5
South African Police Service 214 12
Special Investigating Unit 153 7
SSG SECURITY SOLUTIONS (PTY) LTD 14 0
Standard Bank of SA Ltd 90 26
Telkom SA Ltd 54 3
The iFirm Trading & Projects (PTY) Ltd 12 0
Tshepo Forensic Services Africa 16 0
Transnet Freight Rail 19 6
Ubuntu Business Advisory and Consulting (Pty) Ltd 20 0
Unemployment Insurance Fund 53 1
Vodacom 27 7
Western Cape Government 14 6
57