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Benchmarking results – Part 3: University of Montenegro

Achieving Excellence in Education: Aligning University Accounting Curricula to International Benchmarks

Tanja Lakovic, assistant, Economic Faculty, University of Montenegro

Atanasko Atanasovski, Consultant, Centre for Financial Reporting Reform, World Bank

September 14, 2015

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About University of Montenegro- Faculty of Economics

»The Faculty is part of Public University, oldest faculty (1960)

with highest ranking in the country.

»Operates undergraduate degree program in economics (4

years) with 10 modules in the final academic year, one of which

in accounting.

» 8 active graduate programs among which program in

accounting and audit.

»The Faculty is dominantly financed by fees from students (74%)

and Government subsidies (21%).

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About University of Podgorica- Faculty of Economics

»The Faculty is partly autonomous in developing new undergraduate and graduate programs, subject to approval by University Senate.

»The Faculty autonomously decides on format of teaching and examination.

»The Faculty in cooperation with the University Governing Bodies establishes academic partnerships with other Universities.

»Admission quotas are decided by the Government of Montenegro.

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About University of Podgorica- Faculty of Economics

»Admits 60 of overall 300 students to the accounting and audit undergraduate program in their final (4th) academic year; 20-25 students out of 150 to the graduate program per academic year.

»Undergraduate accounting program offered since 2010, introduced through TEMPUS project partnership.

»The Faculty does not have a formal strategy to manage its interface with the corporate world;

»The Accounting professors have strong cooperation with the professional organisation (ICAM) and some with professional accounting firms and public sector in the country.

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Update of Curricula

»In the past, general curricula reforms for undergraduate studies

were completed as part of re-accreditation process. Current

curricula created in 2010, with minor changes introduced in

2012.

»Teaching staff are making regular annual updates of courses

syllabuses, if needed.

»The Faculty analysis the quality of the teaching process through

electronic student surveys conducted at the end of each

semester.

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Accounting and audit curricula/ materials

»The Accounting curriculum taught can be considered as

compliant with IFAC’s IES’s for Professional Accountants.

»Exemptions for accounting graduates are available for ACCA

(F1-F4) and local professional qualification provided by

Institute of Certified Accountants of Montenegro (certified

accountant).

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»Accounting related textbooks availability in local language has been rated as very good, however textbooks in financial management, financial reporting, cost accounting need improvement.

» The use of English textbooks and materials has been rated as modest.

»Updated English or translated version of IFRS’s, ISA’s and other relevant pronouncements are not available in the Faculty Library. IFRS 2010 translated into local languare are available.

»All courses are currently taught in local language, only.

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»IT technologies have been modestly used for the teaching

process, mainly to effectively communicate with students.

»Presentations, short case studies, in-class exercises; group and

individual project assignments are the usual course delivery

methods.

»Exams (final and interim) are written and oral, composed of

combination of MCQ’s, short exercises; case studies or open-

ended discussion Q’s.


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Faculty Body

»Accounting Department has teaching staff of 9 (2 Full-time and

3 Associate Professors, 1 Assistant Professor and 3 Assistants)

»Teaching norm is minimum 8 hours per week for professors and

12 hours per week for assistants.

»Student/staff ratio is 300 per professor for 1-3 study years; 50

per professor for courses taught at 4th final year.

»Most of the Professors are proficient in English and have

experience in publishing and teaching in English.

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Student Body

»25 % of all students study Accounting and Audit.

»The drop out rate in 2014 was 2.7%.

» The English language proficiency among students can be

considered as very good.

»Part of the Student body has international mobility; most

frequently the students used ERASMUS, TEMPUS and other

mobility programs in the past.

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Accounting Student Body – Employment proportion

Proportion

Local audit & assurance companies 20%

International audit & assurance companies 5%

Financial sector (banking, insurance, other credit

institutions)

35%

Business community 30%

Government bodies 10

Non-profit, non-governmental organizations

TOTAL: 100%

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Student Body – Interface with Corporate World

»The Faculty could benefit from a Career Center to manage its

link with the Corporate World.

»Joint advisory body that will incorporate representatives from

companies and institutions (employers) could be beneficial for

curricula update and practical training for students.

»Events are organised (once a year) to link students with

companies in recruitment process.

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Benchmarking analysis results

»Undergraduate Program in Economics has 10 modules

(Students enroll in 4rd year of studies).

»The Accounting module has five compulsory courses taught

in the last semester of undergraduate studies.

»Benchmark analysis was performed against ACCA

Professional Qualification (Fundamental level courses) and

CIPFA International Public Financial Management

Qualification (up to Diploma level)

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»ACCA courses syllabus included:

» Accountant in business; Management Accounting; Financial Accounting

» Performance Management; Financial Reporting;

» Audit and Assurance

»ACCA courses not included:

- Corporate and Business Law

- Taxation

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»CIPFA International Public Financial Management Qualification

courses included (Diploma level):

» Financial Accounting; Management Accounting

» Public Sector Financial Reporting; Audit and Assurance

» Managing Organisations; Managing Finance

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» Accounting and audit related courses taught at the Undergraduate

Accounting Program:

Compulsory

» Accounting; Business Analysis; Financial Management

» Cost Accounting; Advanced Financial Reporting; Accounting for

Financial Institutions; Governmental Accounting; Corporate Analysis

and Control.

Electives

Accounting Information System; Auditing and Control

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Benchmarking results for ACCA profile – without elective courses

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

F1 F2 F3 F5 F7 F8 F9

ACCA Papers

ACCA Benchmark Actual

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Benchmarking results for ACCA profile – without elective courses

ACCA Profile No Topics Coverage Target

F1 Accountant in Business 169 71% 80%

F2 Management Accounting 134 76% 80%

F3 Financial Accounting 144 74% 80%

F5 Performance Management 25 21% 80%

F7 Financial Reporting 86 67% 80%

F8 Audit and Assurance 10 7% 80%

F9 Financial Management 119 65% 80%

TOTAL 687 58%

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Benchmarking results for ACCA profile – Including elective courses

ACCA Profile No Topics Coverage Target

F1 Accountant in Business 201 85% 80%

F2 Management Accounting 134 76% 80%

F3 Financial Accounting 144 74% 80%

F5 Performance Management 29 24% 80%

F7 Financial Reporting 86 67% 80%

F8 Audit and Assurance 105 75% 80%

F9 Financial Management 119 65% 80%

TOTAL 818 70%

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Benchmarking analysis results – ACCA profile

»Performance management topics not covered:

- CVP analysis

- Techniques and tools for presenting information to the management

- Budget preparation; budgeting approaches; behavioral aspects

- Management reports, variance analysis of results

- Balance scorecard; cost reduction and value chain analysis

- Performance measurement (long vs short term); financial vs non-financial PI’s; benchmarking;

- Pricing decisions; transfer prices; full analysis of costs relevant for decision-making

- Risk and uncertainty in decision-making;

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»Financial Accounting and Reporting topics not covered:

- Consolidated financial statements

- Accounting for investment property

- Events after the reporting period

- Earnings per share

- Assets held for sale and discontinued operations

- Bank Reconciliations and Suspense Accounts

- Incomplete records

- Inventory and biological assets

- Accounting for leases

- Deferred tax

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»Auditing and Assurance topics not covered in undergraduate

program syllabus:

- Audit objectives and tailored audit programs for specific items (tangible

and intangible non-current assets; non-current liabilities, provisions and

contingencies; share capital and reserves)

- Internal Audit, its contribution, framework for internal audit, reports

- Audit procedures for going concern;

- Test of controls; Internal controls for specific transaction cycles

- Audit techniques in non-profits

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»Financial Management topics not covered in undergraduate

program syllabus:

- WACC; business valuation models; valuation of shares and debt

- EMH and practical considerations in valuation of shares

- Financial objectives for non-profits

- Specific investment decisions (lease or buy; asset replacement); non-

financial factors in investment decisions

- Finance vehicles for SME’s

- Financial risks and risk management techniques

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CIPFA results – without elective courses

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

FA MA PS AA MO MF

CIPFA Papers

CIPFA Benchmark Actual

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Benchmarking results for CIPFA profile – without elective courses

CIPFA Profile No Topics Coverage Target

FA Financial Accounting 144 67% 80%

MA Management Accounting 100 76% 80%

PS Public Sector Financial Reporting 6 15% 80%

AA Audit and Assurance 24 14% 80%

MO Managing Organisations 38 30% 80%

MF Managing Finance 69 38% 80%

TOTAL 381 44% 80%

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Benchmarking results for CIPFA profile – including elective courses

CIPFA Profile No Topics Coverage Target

FA Financial Accounting 168 79% 80%

MA Management Accounting 101 77% 80%

PS Public Sector Financial Reporting 6 15% 80%

AA Audit and Assurance 126 75% 80%

MO Managing Organisations 49 39% 80%

MF Managing Finance 69 38% 80%

TOTAL 519 60%

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Benchmarking analysis results – CIPFA profile

»Public Sector Financial Reporting topics not covered in

undergraduate program syllabus:

- IPSAS are not taught at Governmental Accounting Course

- Preparation of accrual based- single and consolidated entity financial

statements

- Tools to measure financial performance in the Public Sector,

interpretation of financial and non-financial information

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» Auditing and Assurance topics not covered in undergraduate program

syllabus:

» Role of the International Organization of Supreme Audit Institutions

(INTOSAI)

» Specific work of internal auditors; Contribution for Organisations;

Regulatory Framework; Internal performance reviews and internal

control audits; Reporting

» Audit in IT environment

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»Managing Organisations topics not covered in undergraduate program syllabus:

- Performance management models (Balance scorecard; KPI’s; benchmarking etc.)

- Business process re-engineering

- Value management techniques and analysis

- Procurement and typical tendering process in the public sector; Contracting in the Public Sector

- Outsourcing risks and benefits

- Quality control for service delivery in Public Sector; Service Delivery Environment

- Project management in Public Sector

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»Managing Finance topics not covered in undergraduate

program syllabus:

- Environment for Financial Management in the Public Sector

- Investment Management in the Public Sector; Techniques in capital

expenditure decision making

- Calculate Specific Cost of Capital in the Public Sector

- Treasury Management Activities in Public Sector Organisations

- Price setting strategies and influencing factors (Public Sector)

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Benchmark Analysis – University of Montenegro

»Questions?

Documents

Achieving Excellence in Education: Aligning University ...siteresources.worldbank.org/EXTCENFINREPREF/Resources/4152117... · Benchmarking analysis results –ACCA profile ... - Management