ICB Public Sector Accounting Programme

 

Refer to the ICB curriculum statements under the ICB Accounting Programme for the following subjects:

• ICB Bookkeeping to Trial Balance
• ICB Computerised Bookkeeping
• ICB Business Literacy
• ICB Financial Statements
• ICB Cost and Management Accounting
• ICB Business Law and Accounting Control
• ICB Corporate Strategy
• ICB Management Accounting Control Systems
• ICB Financial Reporting and Regulatory Frameworks

 

Public Accounting Administration

 

Introduction to income tax

 

• Identify the different types and categories of taxes;
• differentiate the factors in deemed South African source;
• understand the process of the Income Tax Act;
• identify the different tax years of assessment;
• compute the basic taxable income of an individual;
• calculate a tax liability as per the sliding scale tax table;
• calculate marginal and effective tax rates;

 

• calculate tax thresholds from the sliding scale tax table and given tax rebates;
• understand the pre-paid taxes system;
• demonstrate the tax process; and
• understand the scope and aim of the Tax Administration Act.

 

Payroll administration

 

• Identify and solve problems relating to the payroll schedule and tasks using critical and creative thinking processes;
• work effectively with others as a member of a team, group, organisation or community in order to complete all the necessary payroll tasks timeously;
• organise and manage yourself and your activities responsibly and effectively in order to implement all tasks effectively;
• collect, analyse  organise  and  critically  evaluate  information  relating  to  payroll  tasks, schedules and deadlines;
•   communicate effectively using visual, mathematical and or language skills in the modes of oral and written persuasion in order to gather all the necessary information for planning purposes;
• use science and technology effectively and critically in order to manage the payroll function effectively, showing responsibility towards the environment and health of others; and
•   demonstrate an understanding of the world as a set of interrelated systems by recognising that problem-solving contexts relating to the planning and scheduling of the payroll function do not exist in isolation.

 

Employees’ tax

 

• Calculate gross earnings for an employee, including allowances as well as company car and medical aid fringe benefits;
• calculate ‘remuneration’ and ‘balance of remuneration’ as defined by SARS;
• calculate ‘PAYE remuneration’, ‘SDL remuneration’ and ‘UIF remuneration’ as defined by SARS;
• complete a monthly EMP201 return reflecting the correct calculation and payment of PAYE, SDL and UIF due to SARS;
• complete an annual IRP5 certificate or an IT3(a) certificate for each employee; and
• complete the annual EMP501 reconciliation for SARS.

 

Accounting for payroll

 

• Calculate wages from either time records or a productivity scheme;
• make and record the correct deductions;
• record all payroll components in the appropriate wages or salaries register; and
• post the wages and salaries registers as well as the cashbook payments to the general ledger to affect the double entries for payroll.

 

Completing tax returns

 

• Complete an ITR12 tax return.

 

The structure of the South African public sector

 

• Explain the context of the public sector and define its components, including basis of funding, legislation, role, structure, reporting and interrelationships;
• identify the features which contribute to the uniqueness of the public sector;
• compare the similarities between the public and the private sector;
• identify and explain the characteristics and/or concepts of South Africa’s three spheres of government;
• identify legislative institutions in South Africa’s central government system and explain the role of each institution;
• identify executive institutions in South Africa’s government and explain the role of each institution; and
• identify judicial institutions in South Africa’s government system and explain the role of each institution.

 

The role of the financial management system in the public sector

 

• Explain how the financial management system assists the government to translate its strategy into action;
• explain how the financial management system informs decision making and accountability;
• explain how the financial management system encourages a responsive and efficient public sector;
• explain the role of the office of the Auditor-General and Public Accounts Committee in relation to the financial management system in a public service organisation and parlia- ment;
• identify the reporting responsibilities of the office of the Auditor-General and the Public Ac- counts Committee;
• explain the role of the Accountant-General and the Accounting Officer in relation to the financial management system in a public service organisation and parliament;
• identify the reporting responsibilities of the Accountant-General and the Accounting Officer;
• explain and describe the role of the Institute of Public Finance and Auditing;
• understand and explain the methods of controlling public sector finance;
• explain reporting outcomes and outputs and why these inform organisational decision making; and
• outline the fiscal links between operational management and performance obligations within public sector organisations.

 

Revenue as a key aspect of public financial management

 

• Identify and describe revenue as a key aspect of public financial management;
• describe the different sources of public revenue and the amount of discretion that is avail- able;
• explain the principles of appropriation of income, including systems of priority setting;
• describe the intergovernmental fiscal system, including the DORA; and
• explain the trends in public revenue reporting and control.

 

Expenditure as a key aspect of public financial management

 

• Identify and describe expenditure as a key aspect of public financial management;
• describe all forms of public expenditure;
• explain the trends in public expenditure reporting and control; and
• explain the key factors underlying public expenditure trends.

 

The legislative framework governing financial management in the public sector

• Describe the legislation that supports the public sector financial management system;
• identify and discuss the intent and the main purpose of the Public Finance Management Act (PFMA);
• identify and discuss the key features and principles of the PFMA;
• identify and discuss the intent and the main purpose of the Municipal Finance Manage- ment Act (MFMA);
• identify and discuss the key features and principles of the MFMA;
• identify and discuss the main purpose of the treasury regulations;
• identify and discuss the key features and principles of the treasury regulations;
• identify and discuss the main purpose of GAAP/GRAP within the context of the public sector; and
• identify and discuss the key features and principles of GAAP/GRAP within the context of the public sector.

 

Ethics in the South African public sector

 

• Demonstrate knowledge of ethics in the South African public sector;
• identify and describe core public sector ethical values;
• describe and identify reasons for ethical standards in the public sector;
• describe and identify two recent case studies reported in the public arena that illustrates the importance of ethical values and standards within the public sector;
• identify and  explain  the  importance  of  ethical  values  and  standards  within  your organisation and the role of ethical values in that organisation;
• demonstrate knowledge of the public service code of conduct;
• explain the purpose of the public service code of conduct;
• identify and explain the principles contained in the public service code of conduct in the context of their implications for a public service organisation;
• identify and explain the principles contained in the public service code of conduct in the context of their implications for a public service employees;
•      identify other codes of conduct and/or ethics that operate in the public service organisation in which you work, and explain the relationship between this code and the public service code of conduct;
• demonstrate knowledge of the ethics and value of the profession;
• analyse practical situations to make judgements in relation to the applicable code of professional conduct;
• apply professional judgement to practical situations in accordance with the applicable code of professional conduct; and
• exercise professional judgement in line with the organisational code of ethics.

 

Introduction to supply chain management

 

• Demonstrate knowledge of the supply chain management cycle;
• define the responsibilities of the various role players in the supply chain management cycle;
• describe and  define  the  elements  of  the  supply  chain  management  cycle  (demand, acquisition, logistics, supply chain performance);
• explain the reporting arrangements;
• demonstrate knowledge of the procurement process;
• explain the procurement processes and procedures;
• demonstrate the procedures for procurement;
• demonstrate an understanding of the specific guidelines, policies and requirements for creating a supply chain management framework;
• describe other related policy initiatives and explain their relationship;
• identify the key issues that are likely to arise within the workplace by the implementation of supply chain management (including political, ethical, moral, financial etc.); and
• demonstrate an understanding of the responsibilities of the Accounting Officers/authorities for supply chain management

 

Introduction to cash management

 

• Identify procedures for dealing with cash sales in terms of security;
• identify the acceptability of cheques in terms of liability, security and limitations;
• explain why cash receipts and payments should be monitored and controlled against budgeted cash flows;
• ensure that monies received are treated according to organisational procedures;
• deposit monies received in a bank account (or hold it in safekeeping) in accordance with organisational procedures;
• follow internal control procedures;
• explain the  separation  of  functions  in  the  accounts  payable  and  accounts  receivable processes; and
• ensure that payments are made according to organisational procedures.

 

Introduction to credit management

• Understand the concept of credit management;
• identify forms of credit that might be granted;
• explain the advantages and disadvantages of extending credit;
• explain the business process of accounts receivable;
• explain the separation of functions in the accounts receivable process;
• manage debtors in accordance with the organisation’s credit management policy;
• assess credit worthiness;
• identify internal and external sources of information the evaluate the current credit status of customers and potential customers;
• understand that new accounts can only be opened for those customers with an established credit status;
• agree credit terms with customers in accordance with the organisation’s policies;
• discuss the reasons for refusing credit with customers in a tactful manner;
• prepare statements of account and send it to debtors timeously;
• use relevant source documents to communicate with debtors;

 

• monitor and control the collection of debts;
• identify the consequences of the acceptance of credit cards as a form of payment;
• identify the  effect  of  the  use  of  credit  card systems  in  terms  of  increased  company revenue;
• produce and interpret an accurate debtors age analysis;
• take effective steps to collect debt before it becomes unrecoverable;
• know and understand the debt recovery strategies and procedures in accordance with organisational procedures;
• monitor information relating to the current state of debtors accounts regularly and ensure that appropriate action is taken;
• send information  regarding  significant  outstanding  accounts  and  potential  bad  debts promptly to the relevant individuals in the organisation;
• ensure that  discussion  and  negotiations  with  debtors  are  conducted  courteously  and achieve the desired outcomes;
• ensure that debt recovery methods used are appropriate to the circumstances of individual cases and are in accordance with the organisation’s procedures; and
• understand the importance of recommendations to write off bad and doubtful debts – based on a realistic analysis of all known factors.

 

ICB Technical Public Accounting

 

Basic economic principles

 

• Explain basic economic concepts;
• describe the relationship between economic concepts;
• identify and describe basic economic systems;
• explain the concept of economic growth;
• identify factors that influence economic growth;
• describe and explain the market mechanism and characteristics of markets;
• illustrate the market mechanisms and changes in market conditions;
• describe government’s fiscal policy;
• explain the role of government in the economy;
• describe and critically appraise instruments of fiscal policy;
• describe government’s monetary policy; and
• describe and critically appraise instruments of monetary policy.

 

Management information systems

 

• Identify the objectives of management information systems;
• contribute to improving the quality of management information systems;
• suggest improvements to information systems;
• coordinate work activities within the accounting environment;
• identify opportunities to improve the effectiveness of an accounting system;
• identify and report on control deficiencies in an accounting system; and
• demonstrate an understanding of the management and accounting environment.

 

Public sector financial statements

 

• Demonstrate an understanding of the framework for drafting public sector financial state- ments;
• draft public sector financial statements;
• interpret public sector financial statements;
• draft consolidated public sector financial statements.

Risk management in the public sector

 

• Interpret risk management strategy, policy and related processes and procedures;
• describe the concept of risk management in a public sector environment;
• identify preventive, detective, corrective and directive actions to reduce risks;
• define an organisation’s risk management policy;
• recommend possible mechanisms to minimise risks;
• formulate a framework for minimising risk;
• demonstrate how to select the most appropriate mechanism to minimise risks for a par- ticular function; and
• justify reasons for recommending a particular mechanism.

 

Performance management in the public sector

 

• Define the outcomes and benefits to be achieved with performance measurement;
• demonstrate an understanding of the performance measurement system implementation process; and
• evaluate approaches to the management of performance in the public sector.

 

Project management in the public sector

 

• Define a project and explain the differing nature of projects;
• describe the major constraints on the completion of projects;
• draft a project plan; and
• evaluate a project plan.

Planning, budgeting and management accounting in the public sector

 

• explain the role and functions of the management accounting unit within a government department;
• explain the budget process in government, requirements and timelines;
• describe the purpose and contents of departmental planning and budgeting documents;
• describe and explain the link between the operational budget and the MTEF, strategic plan, programmes, sub-programmes and projects;
• describe the different budgeting methods and prepare budgets based on these methods;
• describe the key concepts used for budgeting and their applications;
• identify information required for preparing plans and budgets from internal and external sources;
• describe and calculate different types of costs;
• plan, account for and monitor the process for adjustment estimates;
• assess the need for virements and rollovers;
• describe the communication processes with budget holders to agree draft budgets;

 

• consolidate information and complete reporting templates required by treasury;
• monitor cash receipts and payments against budgeted cash flow and prior month’s in-year monitoring templates;
• identify significant deviations from the cash budget and take corrective action observing organisational policies;
• prepare the required budget templates with explanations of assumptions and projections;
• calculate the effects of variations in service delivery targets on costs and vice versa;
• analyse and interpret trends between current year’s actual and budgeted expenditure and current and prior year expenditure;
• describe the concept of assumptions and how they are applied;
• make recommendations based on the analysis in a clear and concise way;
• balance monthly  cash  flow  and  adjusted  cash  flow  to  the  estimates  of  expenditure/ adjusted estimates of expenditure;
• describe the structures of government and how the cash flows from the treasury are disbursed to the departments;
• determine the likely pattern of cash flows over the accounting period, including exceptional receipts or payments;
• follow-up on differences and identify outstanding payments to be made;
• identify the type of information and reports obtained from different systems.