the report1 of the president of the southern african ... · report of the president of saiga: 01...

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THE REPORT1 OF THE PRESIDENT OF THE SOUTHERN

AFRICAN INSTITUTE OF GOVERNMENT AUDITORS

01 April 2017 to 31 March 2018

THE SCOPE OF THIS REPORT

The Report of the President covers activities of the institute from 01 April 2017 to

31 March 2018.

HIGHLIGHTS OF THE YEAR

1. STRATEGIC

NQF Level 8 qualification

As highlighted during the 2017 AGM, one of SAIGA’s biggest challenges is to

improve the recognition level and competitiveness of our profession through

the redevelopment and re-alignment of the RGA qualification on an NQF Level

8 and the development of a FASSET accredited learnership.

Following a rigorous consultation process, the institute managed to submit its

application for the Development of the RGA Occupational Qualification with

letters of support from the National Treasury, Auditor-General SA and leading

Higher Education Institutions such as Nelson Mandela University and the

University of Cape Town to the Quality Council for Trade and Occupations and

is awaiting approval from the Occupations Qualifications Committee of its

application.

1 This Report includes elements of a Performance Report, a Financial Summary and an

Integrated Report

Report of the President of SAIGA: 01 April 2017 to 31 March 2018

SAIGA – Advancing Auditing and Accountability of 15

The South African Qualification Authority in October 2017 re-recognised SAIGA

as a Professional Body and the RGA designation until 2022.

Above: Mr Joe Samuels, CEO of SAQA presenting SAIGA’s Professional Body

Recognition and RGA Designation Certificate to Mr Wally van Heerden, Education &

Training Committee Member of SAIGA.

Marketing and branding



Pictures from Nelson Mandela University Open Day, August 2017

The rebranding and marketing of SAIGA, the RGA designation and related

service offerings such as the PFM Academy (short courses) is bearing fruit. The

aim is to improve awareness and credibility of profession.

- Short courses

The demand for short course offering to the public sector is increasing with

62 officials from various national and provincial departments (from the

finance and supply chain units) trained between September 2017 and

March 2018 on Preparation of Financial Statements and Supply Chain

Management.

- GASP

For the GASP 2017 we have added the distance learning component and

piloted the online platform as part of the preparation of candidates which also

included a platform for uploading of required pre-reading material and

submission of assignments before the start of the GASP contact classes. To

strengthen the relevance and qualitative part of the programme, the main

“public sector perspective” principles contained in the IFRS has been included

to provide high level understanding to candidates of the conversion from the

Modified Cash Standard to IFRS /GRAP where applicable as part of the GRAP

module. The required pass mark per paper and overall has also been increased

from 40% to 50% for the GASP and the RGA QE.

- CPD



The CPD online system was introduced and rolled out for members to

upload CPD hours for the period ending 31 March 2018.

- Debtor’s book and members database

Communication to members via the website, newsflashes and social

media accounts has increased. This has resulted in a more complete

and cleaned up debtor’s book as well as the member database.

- Partnerships

SAIGA continues to partner with companies and organisations to

provide value added services to members with lifestyle benefits i.e.

discounts on purchase of motor vehicles and obtaining sponsors for the

awards of the top performing candidates in the RGA QE as well as the

event.

The partnership with the AGSA for Social Economic Development with

the adoption of rural high school (Hosea Kekana) and a primary school

(Ramotse Primary) in Hammanskraal for 12 months resulting in SAIGA

donating school shoes and socks to 60 learners at the primary school ,

furniture and equipment, painting of 8 class rooms at Hosea Kekana

Secondary School and awarding of certificates and prizes to pupils in

Grade 8 -12 in the Economic and Management Sciences (EMS) field .

We also provided information to the high school learners about SAIGA

as a professional body and the RGA designation as a career of choice.



Pictures : Ramotse Primary School and Hosea Kekana Secondary School, SAIGA

Partnership with AGSA SED



2. 2017 results - GOVERNMENT AUDITING SPECIALISM PROGRAMME (GASP) and

QUALIFYING EXAMINATIONS FOR REGISTERED GOVERNMENT AUDITORS

- GASP 2017

All candidates who wish to qualify as Registered Government Auditor

(RGA) must enrol and successfully complete the Government Auditing

Specialism Programme (GASP). The programme has been running

successfully for 10 years (since 2008) and the institute continue to invest

in improving its efficiency and effectiveness in ensuring that candidates

that successfully complete the programme are capacitated to function

well in their roles within the auditing and accounting environments in the

public sector.

Results statistics and other information:

Candidates

No. %

First time candidates 42 75

Repeat candidates 14 25

Total 56 100

Total number of SUCCESSFUL* candidates 26 46%

(Passed all 3 Assessment Papers with minimum required of 50 % per

Assessment Paper and 50% Average overall)

Total number of PARTIALLY SUCCESSFUL**

first-time candidates 28 50%

(Passed 1 or 2 of the 3 Assessment Papers)

Total number of UNSUCCESSFUL*** candidates 2 4%

- RGA –QE

It is a professional examination specifically designed to test the public-

sector knowledge and skills and assess if a candidate has the required

competencies to function as registered government auditor. The

examination covers topics such as the PFMA, Treasury Regulations,

MFMA, Public Audit Act, MCS, IFRS & GRAP, Ethics, ISA and Practical

Audit, Performance Auditing, Audit of Performance information (AoPI),

ICT Auditing and Forensic auditing.



Results statistics and other information:

No of Candidates %

Total number of first time candidates 30 65%

Total number of repeat candidates 16 35%

TOTAL number of 2017 candidates 46 100%

Total number of SUCCESSFUL candidates’ 29 63%

Partially Successful candidates 17 37 %

Above the Top Candidates for the RGA 2017 QE

3. SECRETARIAT

The Secretariat moved to new offices in Cambridge Office Park, Highveld

Techno Park in Centurion. This new home of the secretariat allows for future

cost-effective growth and space to cater for some events.

4. MOU WITH THE AGSA

The Memorandum of Understanding between SAIGA and the Auditor General

of South Africa (AGSA) signed in the prior period remains in effect. The Deputy

Auditor-General has re-confirmed her commitment to support SAIGA in its

initiatives for a competitive public-sector qualification for accountants and



auditors. It is important that SAIGA delivers on its objectives and leverages on

partnerships to successfully benefit its members.

5. FINANCIAL OVERVIEW

SAIGA’s business model is primarily financed by membership contributions and

related activities. Provided below is a summary of the financial trend for the

past 4 years.

5.1 FINANCIAL SYNOPSIS – 31 March 2018

2018

R’000

2017

R’000

2016

R’000

2015

R’000

Net income from activities

initiated by the Institute

8,436

16,899

17,638

12,661

Individual and corporate

members’ contributions

3,390

5,424

5,322

5,204

Investment income 1,788 1,744 1,176 653

Total expenditure 6,065 5,281 6,591 4,057

Surplus before taxation 2,370 11,618 11,046 2,010

Taxation (704) (3,253) (3,034) (855)

Sub-total 1,665 8,365 8,012 1,155

Reserves from previous years 27,864 19,499 11,487 10,332

Total accumulated funds 29,529 27,864 11,487 10,332

Represented by assets:

Office furniture and

electronic equipment

135

76

78

131

Investments 24,156 23,608 17,990 10,623

Net current assets (liabilities) 573 1,768 5,606 733

Total assets 29,529 27,864 19,499 11,487



1. The reduction in revenue is due to the decrease in numbers of trainees

enrolling for GASP 2017 (42 first time candidates compared to 76 the

previous year) as well as the 0 intake of SAIGA trainees by AGSA for 2018.

2. We have budgeted R2,000,000.00 from our reserves (investments) to

fund the development of the priority projects i.e. Development and roll-

out of the RGA Qualification for 2018/19 and 2019/20. See Budget

2018.19 for detailed breakdown of projects.

5.2 SAIGA Budget 2018/19

The Institute’s budget aims to guide and inform its planned activities and

operations for the coming financial year and ensure sound financial

management of its resources. the Annual Budget is hereby presented to the

Annual General Meeting for noting by members’ present. See attached

Annexure –Budget 2018/19

6. Fee Structure 2018 /19

Council has not increased some of the fees and reduced the 2018/19 GASP

and RGA related fees for the 4th consecutive year to bring it line with

comparative fees of other professional qualifying examinations.

2018 2017 2016

RGA annual subscription fee 6,726 6,726 6,726

RGA once off fee to join 7,000 10,000 18,240

Corporate members (large) annual

subscription 4,446 4,446 4,446

Corporate members (small) annual

subscription 1,710 1,710 1,710

Trainee auditor annual subscription

fee 3,000 4,788 4,788

Trainee auditor once off fee to join 2,000 3,819 3,819



Trainee auditor assessment GATE

submission 1,000 8,094 8,094

GASP Fees 16,000 33,256 33,256

RGA QE Fee 10,000 22,995 25,995

7. Growth and Transformation

Provided below are the members’ statistics over the past four years to allow

members and stakeholders to assess the success which the Institute has

achieved in terms of its growth and transformation imperatives.

Overall 2018 2017 2016 2015

RGA’s 581 541 483 428

Trainees ***162 334 264 279

RGA’s represented by race 2018 2017 2016 2015

African 345 285 232 175

Coloured 31 31 28 21

Indian 41 41 41 40

White 164 184 182 192

Trainees represented by race 2018 2017 2016 2015

African 151 315 252 256

Coloured 1 5 7 14

Indian 6 8 4 6

White 4 6 1 3

RGA’s and Trainees represented by

Gender

2018 2017 2016 2015

RGA Male 331 323 293 271

Female 250 218 190 157

Trainees Male 74 152 115 134

Female 88 182 149 145

** As part of the members database clean-up to date we have removed 38

RGA’s and 95 trainee auditors (made in-active). The clean-up of the

membership database is on-going as members resign without informing the

secretariat of their change of work address, contact details etc. Remedies

explored include;

• News flash for members to update their details on the website



• E - mail communication

• SMS sent to members last known contact numbers

• Social Media and Website notices

8. SAJAAR Volume 19 of 2017

Through the publication of SAJAAR, SAIGA promotes and provides a platform

for publication of scientific research in the field of auditing and accountability

for authors with emphasis on the public sector, public financial management

and related disciplines as well as access to publications to members and

stakeholders. The 2017 issue of SAJAAR was successfully published in December

2017. The content was placed on Sabinet for access to all university libraries

and other Sabinet members. A pdf version of the journal was sent to all SAIGA

members and important stakeholders.

9. 2017 2nd RGA Top5 Awards

Pictured below: 2017 Top candidates with the President, Chairpersons of Examination

Board , Education and Training Committee , Presenters and Council members



Top RGA Candidate for 2017, Ms Rendani Thevhenyedza receiving her prize from Mr Hilton

Theunissen, MD of Growthwheel SA with the CEO of SAIGA, Manfred Moses.

The 2nd RGA Awards and GALA Dinner to honour our top candidates in the

November 2017 RGA QE was hosted at the L&S Events in Gezina. The awards

were attended by our stakeholders, council and committee members and

representatives from the National Treasury, the AGSA, audit firms and our

sponsors. Mr Vickson Ncube, CEO of Pan African Federation of Accountants

(PAFA) delivered the keynote address with the President of SAIGA, Ms Meisie

Nkau addressing the audience regarding the strategic direction of SAIGA.

The 2017 RGA Awards was sponsored

• Toyota Pretoria North (Funday for trainees, 4X4 Vehicles and obstacle

course and portion of Venue Cost)

• Growth Wheel SA Training programme worth R60,000.00 for the Top RGA

Candidate for 2017

• Grant Thornton offered a number of the top candidates’ work exposure for

three months.

10. Broad-Based Black Economic Empowerment (“B-BBEE”)

SAIGA maintained its B-BBEE Level 2 rating for 2017/18.



KEY CHALLENGES

Council continue to focus its attention on the most important initiative that will

improve the recognition level and competitiveness of the profession. Listed

below are areas that receive continued attention but could not be achieved

during the year under review;

• Development of the RGA Occupational Qualification, high-level curriculum

and competency framework for RGA

• Revision of the GAE and GATE

• Accreditation of new work place training providers

• Greater awareness and marketability of GASP and the RGA designation

resulting in an increased trainee auditor intake to address the 2018, zero

recruitment of SAIGA trainees by the AGSA.

The year ahead

For the 2018/19 year ahead, the following key activities will be prioritised;

• Obtain formal approval from the Quality Council for SAIGA to continue the

Development of the RGA Qualification, high-level curriculum and

competency framework

• Marketing the RGA route as a career of choice in the public-sector audit

arena.

• Expanding the Online electronic platform for GASP and CPD training

programme for members.

• Roll-out of the Ethics Compulsory CPD programme for members

• Updating and expanding the short course offerings via PFM Academy

• Invitation to audit firms contracted to perform public sector audits to enrol their

trainees in GASP 2018

• Election of new Council members for SAIGA



• Election of a new President of the institute at the next AGM 2019

On behalf of SAIGA we express our gratitude to Mr Lourens van Vuuren, Chairperson

of the Executive Committee and the other Council members who are not available

for re-election for your dedication and hard work to SAIGA and its members.

Yours in advancing auditing and accountability

President of SAIGA

Ms MM Nkau

27 June 2018



ANNEXURES

A- 2017/18 AUDITED ANNUAL FINANCIAL STATEMENTS

B- BUDGET 2018/19

C- FEES 2018 Comparison

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