Ireegular & Unathaurised 2015

Tel 011 028 8299 Fax: 011 492 0517: Fax to Email: 086 652 0176: Email: [email protected] : Web: www.escon.co.za

SCON Your preferred skills provider

R12, 999.99 Escon Accreditation No LGRS-1005-130325

IRREGULAR, UNAUTHORISED, WASTEFUL & FRUITLESS EXPENDITURE, INTERNAL &

FINANCIAL CONTROL AND RECOVERY IN TERMS OF THE PFMA; IN THE PUBLIC

SECTOR: WORKSHOP

5th and 6th May 2015 in Birchwood Conference Centre Boksburg Johannesburg

7th and 8th May 2015 in ICC Hotel East London

Guest Speaker: Ass. Prof, Marcus Intehle BSc (Hons); Mcom and DCom

This is an Accredited Course & SAQA aligned (US 116342, NQF Level 6, Credits: 15)

Due to the high demand for unauthorised, irregular or fruitless and wasteful expenditure

course, seats are limited. Please book early to secure your place.

A FREE LAPTOP OR

A FREE IPAD OR

A FREE SAMSUNG GALAXY

mailto:[email protected]://www.escon.co.za/

Dear Delegate, Thank you for your interest in Escon your preferred skills provider. A Certificate from Escon will prepare you to

step up to a higher level of professional excellence and help shape the future of your organisation

The purpose of this workshop is to provide clarity on the procedures to be followed when dealing with

unauthorised, irregular or fruitless and wasteful expenditure.

Municipalities and departments collect monies from the public in the form of rates, taxes, levies, surcharges,

duties and service charges, receive grants from national and provincial government and borrow for capital

expenditure or bridging finance for short term purposes. These resources are appropriated by Council for the

purpose of fulfilling its powers and functions, primarily to deliver services, in accordance with their mandate as

set out in sections 151,153 and 156 of the Constitution.

The Auditor-General has highlighted an escalating trend in unauthorised, irregular, fruitless and wasteful

expenditure in municipalities over recent years, evident in the audit reports and summarized in the annual

reports on local government. We have also noticed a sense of uncertainty amongst municipalities on the

understanding of how irregular expenditure should be treated and who has the legislative power to deal with

irregular expenditure. The uncertainty relates mainly to how municipalities should conclusively deal with such

matters, the process to be followed and the manner in which such matters should be recorded and disclosed.

This workshop aims to provide clarity in this regard so that there is a common understanding on the process to

be followed in dealing with these categories of expenditure.

Once the Accounting Officer becomes aware of any allegation of irregular expenditure, such allegation may be

referred to the organisationss own Internal Audit Unit or any other appropriate investigative body for

investigation, to determine whether or not grounds exist for a charge of financial misconduct to be laid against

the official liable for the expenditure.

As is touched upon in the first section of this report, good forecasting requires honesty from all concerned. If

senior management only wants to see breakeven in the forecast, it removes any incentive to forecast

accurately. Who would forecast a deficit if they risk being fired or a surplus if they risk having it removed and

given to a failing organisation? It is much easier to forecast breakeven until late in the year, but this is simply

not good practice. As, we hope, the organisations move away from the unauthorized expenditure and deficits

of recent years, it needs to change its culture to permit more honesty in forecasting.

It is in this respect that this 2012/2013 Medium-term Expenditure Framework should reflect organisational

commitment and strategic developmental agenda to meet the challenges of poverty, inequality and access to

quality services in education, health, social development, human settlements, agriculture and growing the

provincial economy:

I congratulate you on your choice to attend our workshop and thank you for choosing Escon.

Sincerely,

Joey Bezeng (Managing Director)

IRREGULAR, UNAUTHORISED WASTEFUL & FRUITLESS EXPENDITURE, INTERNAL & FINANCIAL CONTROL AND RECOVERY IN TERMS OF THE PFMA; IN THE PUBLIC SECTOR: WORKSHOP

Ass. Prof, Marcus Intehle BSc (Hons); Mcom University of North West (Supply Chain Management) and DCom University of

South Africa: Senior Public Sector Consultant in South Africa and Senior Lecturer at the University of South Africa

Prof. Marcus is a Doctor from the University of South Africa with major focus on Supply Chain Management. He has presented

papers on public sector supply chain, in Italy, Spain, the US Australia, South Africa etc. and has more than 10 years of

consulting experience, providing guidance on supply chain policy development. He has consulting experience in South Africa at

National, Provincial and Municipal levels. He is an Expert in Supply Chain Management, Procurement, Strategic Sourcing,

Inventory, and Warehouse and Store Management as well as logistics management with leadership practical industrial

experience in the field. His extensive experience also includes SCM risk management, quantification and analysis, and quality

systems benchmarking and has presented supply chain management solutions in more than 14 countries across the globe.

Prof. Marcus has developed the following management and training solutions for public sector organisations in the area of

Supply Chain Management (SCM): Organisational Procurement Diagnostic & Review, Supply Chain Management

Implementation, Gap Analysis / Needs Analysis, Supply Chain Management Policy development in accordance with applicable

legislation and internationally best practices, Drafting of Supply Chain Management Delegations of Authority, Operational

Workflow (Process Maps) and Procedure Manuals, Design Templates, Tender Management documentation and advisory

services and Supply Chain Management Advisory Service

Themba Mazibuko BCom, CA (SA) CFA and Risk Management HDIP (Current); President: Dupleix Institute & Senior Financial

Consultant: Absa Bank and a Public Sector Consulting in Finance and Management

Themba Dupleix Mazibuko is a sought-after inspirational keynote speaker, consultant and an aspiring global business thinker

and futurist who has passionately delivered over 100 keynote speeches and workshop sessions in Southern Africa. He is the

founder and president of the Dupleix Institute, a rapidly growing global organisation specialising in the delivery of customised,

research-based and inspiring workshop programmes. He worked as a Senior Manager for KPMG specialising in the audit of

financial institutions.

In 2008, Themba left KPMG to launch Dupleix Institute and two other companies, Dupleix Consulting and Dupleix Capital

Management. A member of the World Future Society and provisional member of the Association of Professional Futurists,

Themba researches, speaks and trains in the areas of success, strategy and futurism. Currently Themba is studying for the

Chartered Financial Analyst and Financial Risk Management qualifications and serves on the board of trustees of an

international youth organisation. He is an active member of the Toastmasters organisation where he has participated and

excelled in countless speech contests and acted as a mentor to some clubs. He also spends his time writing articles on the

future.

Nick Olivier is a Certified Fraud Examiner and Managing Director of Strategic Investigations and Seminars (Pty) Ltd and is a

Member of the Institute of Directors and Association of Certified Fraud Examiners.

He holds a Bachelor of Arts (Police Science) from UNISAs College of Law, completed Programmes in Financial Management

and Business Management from UNISAs Centre for Business Management and successfully completed the Advanced

Certificate: Fraud Examination (FASSET)

He joined the private sector in 1995 after serving the South African Police Service as a Detective with the Commercial Crime

Branch. Nick excelled as a Financial Advisor and Insurance Broker at Old Mutual, PLC from 1995 to 2000 after which he held

several management positions, including positions in distribution, operations, production and projects at Media24 Ltd up to

March 2008. He presented various topics at seminars in South Africa, Rwanda and Zimbabwe.

He is the Forensic Investigation and Dispute Examination Project Leader for Forensics4Africa and as a Certified Fraud

SPEAKERS FACULTY


Examiner assumes the role as witness representative for the investigation team. He frequently travels throughout Africa as a

dedicated facilitator for the Advanced Certified Fraud Examination qualification. He is no stranger to the public speaking

platform and is able to effectively communicate with audiences and present informative sessions on various topics within the

forensic and fraud investigation field

Joey Bezeng: BSc, CAIB (SA), MBA Finance - UK, DBA Finance and Investment - USA (Current) Consultant: Milpark Business

School; Past - Chief Financial Officer, Requisite Business Solutions (Mining Company). He is a member of the Institute of

Bankers South Africa and a Local Government and Public Finance Expert

Joey is a Facilitator and Assessor and has facilitated many seminars on the practical application of financial tools and

techniques to a wide range of audiences. Joey is a Public and Municipal Finance Expert that has assisted the National

Treasury in the development of workshop material for the Local Government. His experience in senior finance and

Investment management positions covers both private and public sector organisations in South Africa. He is currently a

Company Director. He also lectures Finance and Banking at Damelin School of Banking and Milpark Business School in

Johannesburg. He currently lectures, SAIM, MBA, ICB, CFA, BBA, BCom Banking and the like on part time basis. He has

conducted so many workshops for the public sector unmasking, demystifying the implementation of PFMA and MFMA as

about 132 Public Sector Acts and Treasury Regulations. Crucially, he is so passionate about making finance relevant and

understandable especially for public sector employees. Joey is consistently rated as excellent in his delivery and content

for presentations.

He currently heads a CEMAC (Central African States) Team of Expert who are currently developing and benchmarking with

other countries including South Africa to introduce Best Practice management and administration of the Public Sector and

Local Government Institutions. He is currently workshop in the SADC region with a focus in the public sector and Local

Government Administration. His expertise is in the areas but not limited to Budgeting, Revenue and Expenditure Supply

Chain, Financial Management, Investment and General Administration

Abanda Colin: LLB and LLM University of Johannesburg, Postgrad Diploma in Corporate Governance, Money Laundering and

Compliance University of Johannesburg, Part Time Senior Lecturer at Milpark Business School Johannesburg

Colins presentations are the result of years of practice within an intensely competitive South Africa, first as an outstanding

facilitators with more than eight years of experience in labour law matters. He is experienced adviser to different institutions

in South Africa. Audiences respond enthusiastically to the insights, analysis and practical instruction Colin offers as he applies

his unique perspective and style to each individualized programme. Colins work is in the areas of Labour Law, Basic Condition

of Employment, Employment Equity, Affirmative action etc. His diagnosis and solutions to different companies he has

consulted for can only be understood in his clients testimonies.

Colin is a legal expert, with significant litigation experience, who advises on the full range of employment law issues including

both contentious and non-contentious matters for a range of corporate, government and state sector clients. He regularly

attends mediation on behalf of clients and is focused on achieving pragmatic and commercially driven outcomes for clients.

Colin is an employment Consultant who provides consulting advice in all areas of employment law including health and

safety, employment, public law and education law. Colins areas of expertise include drafting employment documentation,

representing both private and public sector employers at mediation, the Employment Relations and providing legal opinions

on employment to several Homan Resource Professionals at Senior levels

About the workshop

The objectives of this workshop includes amongst other things: emphasising the accountability of employees,

ensuring that employees have a clear and comprehensive understanding of the procedures they must follow

when dealing with unauthorised, irregular or fruitless and wasteful expenditure, ensuring that resources made


available to employees are utilised efficiently, effectively, economically and for authorised official purposes,

ensuring that the organisations resources are managed in compliance with the PFMA, the Treasury

Regulations and other relevant legislation, ensure that irregular, unauthorised or fruitless and wasteful

expenditure is detected, processed, recorded, and reported timeously

Why should you attend this workshop?

The reasons why you should attend this workshop include the following:

Learn about the Latest National Treasury regulation on PFMA, unauthorised, irregular or fruitless and

wasteful expenditure

Identify the strengths of organising an effective unauthorised, irregular or fruitless and wasteful

expenditure planning and the obstacles to implementing good Revenue and Expenditure Forecasting

measures where reform may be needed

Appreciate the practical, operational benefits and how the principles of unauthorised, irregular or

fruitless and wasteful expenditure can be applied specifically to your organisation

Understand the roles and responsibilities of Revenue and Expenditure Forecasting within the confine

of your organisation.

Learn about the latest insights and developments in unauthorised, irregular or fruitless and wasteful

expenditure &Hear from the highest level facilitators in the industry discussing issues that matter

Network and build relations with peers from the public and private sector

Workshop Methodology

This intensive 2-day course classes will combine tutorial sessions and case studies with interactive learning

exercises. All delegates will be provided with a CD containing all the different presentations from the different

skilled facilitators and a certificate of attendance. There may be some pre-seminar materials for use

throughout the course.

Who should attend?

The intended audience is for those involved in the leading, supervision, management, operation or control of

public sector bodies. In particular the course will hold a practical appeal for delegates from Budgeting, Cost

Center, Revenue and Expenditure Forecasting units. It is also of value and interest to specialists, officers,

directors and officials at all grades who require knowledge of Revenue and Expenditure Forecasting and who

wish to progress their careers.

Revenue and Expenditure Officials

Budget managers

Cost Centre Managers

Audit committee members

Board of Directors

Accounting authority

Budget committee

Internal control committee

Risk Management

Secretaries and governance professionals

Accounting Officers

Human Resource Personnel

Municipal Managers

Supply Chain Officials

Assets Managers

Planning and IDP Officials

Treasury and Cash Officials

Account Receivables Officials

Accounts/Credit Payable Officials

Performance Managers

Operations Managers

Compliance officials

Chief Risk and Risk officials

Senior company management

State Lawyers & legislators

General and Financial Managers,

CEOs, CFOs & Corporate Directors,

Employees interested in the compliant

and proper management of the

organisation


8:00 Registration, Tea and Coffee 8:30 Opening remarks from Chairperson 9:00 10:00 Overview of unauthorised, irregular or

fruitless and wasteful expenditure in the South African

Public Sector. The current challenges and way forward, the

role of SCOPA in fighting unauthorised, irregular or

fruitless and wasteful expenditure

Ass. Prof, Marcus Intehle BSc (Hons); Mcom University of

North West (Supply Chain Management) and DCom

University of South Africa: Senior Public Sector Consultant

in South Africa and Senior Lecturer at the University of

South Africa

10:00 11:00 An Overview of Financial crime in South

Africa and some of the Legislations that is aimed at

preventing fraud, corruption, bribery & Money

Laundering:

Public Protector Act of 1998;

Anti-corruption Act of 1994;

Protected Disclosure Act of 2000;

Promotion of Administrative Justice Act of

2000;and

Promotion of Access of Information Act 2000

Foreign Corrupt Practices Act

FICA Act

FAIS Act

POCA Act

Understanding the regulatory enforcement

environment

Gaining management understanding to commit

to and support anti-fraud and corruption

initiatives

Prioritizing the key risks to the business, the

brand and the companys reputation

Maintaining compliance in light of the scope and

complexity of global business growth

Obtaining experienced advice when responding

to compliance issues or threats

Educating the workforce about the risks of

wrongdoing

Cultivating a company-wide culture of

compliance

Nick Olivier is a Certified Fraud Examiner and Managing Director of Strategic Investigations and Seminars (Pty) Ltd and is a Member of the Institute of Directors and Association of Certified Fraud Examiners

11:00 11:15 Morning Tea Break

11:15 13:00 PFMA, unauthorised, irregular or fruitless

and wasteful expenditure in the organisation

Background of the procedures for irregular,

fruitless and wasteful expenditure in terms of the

PFMA

Definitions of irregular, fruitless and wasteful

expenditure in terms of the PFMA

Role of the accounting officer and municipal

manager in terms of the PFMA

Policy and procedures for irregular, fruitless and

wasteful expenditure

Policy and procedures for unauthorised

expenditure

Process to authorise unauthorised expenditure

Investigations and disciplinary actions

Charge of misconduct

Recovery in terms of the PFMA

Reporting in terms of the PFMA

Regular Review of the unauthorised, irregular or

fruitless and wasteful expenditure Register

Accounting Treatment of unauthorised, irregular

or fruitless and wasteful expenditure

Joey Bezeng: BSc, CAIB (SA), MBA Finance - UK, DBA Finance and Investment - USA (Current) Consultant: Milpark Business School; Past - CFO, Requisite Business Solutions. He is a member of the Institute of Bankers SA

13:00 14:00 Lunch Break 14:00 15:00 Methods of disguising proceeds of irregular and fruitless expenditure through money laundering

a definition of money laundering;

details of money laundering offences;

responsibilities under the policy;

the procedures for customer and business identification;

the record keeping procedure;

how to report suspicions and a report to complete;

examples of situations most likely to give rise to money laundering or suspicion of it;

the workshop of relevant staff in how to recognise and deal with transactions which may be related to money laundering

15:00 16:00 Internal accounting and operation of unauthorised, irregular or fruitless and wasteful expenditure

nature and theory of internal control structures

internal operational controls

internal accounting controls

controls and the detection of unauthorised, irregular or fruitless and wasteful expenditure

controls and the investigation of unauthorised, irregular or fruitless and wasteful expenditure

controls and compliance with the foreign corrupt practices act of 1977

controls and compliance with section 302 and 404 of the Sarbanes-Oxley act of 2002

DAY ONE


Themba Mazibuko BCom, CA (SA) CFA and Risk Management HDIP (Current); President: Dupleix Institute & Senior Financial Consultant: Absa Bank and a Public Sector Consulting in Finance and Management

8:00 Registration, Tea and Coffee

8:30 9:00 Opening remarks from Chairperson

9:00 9:30 understanding of the Internal Control Structure

Understanding the 5 components of internal controls

The factors behind each component of internal controls

Hard controls vs. soft controls

Creating the control environment

Monitoring the control framework

Measuring risk impact and likelihood

Risk-management strategies: from ERM to CSA 9:30 10:30 Managing internal Control Activities to Minimize Risks

Reviewing operational auditing

Prevention vs. detection control types

Using ORCA to evaluate management controls

Understanding the 5 assessments in ORCA

How to create an operational audit programme

The 13 steps to creating an individual audit programme

10:30 10:45 Morning Tea Break 10:45 12:00 Monitoring and Reporting on Internal Controls

Creating and implementing a testing system

Manual vs. technology-based monitoring

Elements of effective internal controls reports

How to create reports that everyone in your organization can understand and use

Themba Mazibuko BCom, CA (SA) CFA and Risk Management HDIP (Current); President: Dupleix Institute & Senior Financial Consultant: Absa Bank and a Public Sector Consulting in Finance and Management 12:00 13:00 An Overview of the South African Governance and Governing Body Perspective

Introduction

The Public Sector Context of Governance and ethics

An Overview of the Accountability Arrangements in the Public Sector

Overall Responsibility to Determine the Governance Framework

Oversight Function of the Legislature Contrasted with the Executive Function of Government

Independent Assurance Function of External Auditors

Setting Accounting Standards and Monitoring Compliance

Standard-Setting Arrangements

13:00 14:00 Morning Tea Break

14:00 15:00 Organizational Structures and Processes

Introduction

Statutory Accountability

Accountability for Public Money

Communication with Stakeholders

Roles and Responsibilities

Balance of Power and Authority

The Governing Body of a Controlled Public

Sector Entity

The Chairperson of the Governing Body

Non-Executive Members of the Governing

Body

Executive Management

Remuneration Policy

Abanda Colin: LLB and LLM University of

Johannesburg, Postgrad Diploma in Corporate

Governance, Money Laundering and Compliance

University of Johannesburg, Part Time Senior

Lecturer at Milpark Business School Johannesburg

15:00 16:00 PFMA, unauthorised, irregular or fruitless

and wasteful expenditure in the organisation

Background of the procedures for irregular,

fruitless and wasteful expenditure in terms of

the PFMA

Definitions of irregular, fruitless and wasteful

expenditure in terms of the PFMA

Role of the accounting officer and municipal

manager in terms of the PFMA

Policy and procedures for irregular, fruitless

and wasteful expenditure

Policy and procedures for unauthorised

expenditure

Process to authorise unauthorised expenditure

Investigations and disciplinary actions

Charge of misconduct

Recovery in terms of the PFMA

Reporting in terms of the PFMA

Regular Review of the unauthorised, irregular

or fruitless and wasteful expenditure Register

Accounting Treatment of unauthorised,

irregular or fruitless and wasteful expenditure

Joey Bezeng: BSc, CAIB (SA), MBA Finance - UK, DBA Finance and Investment - USA (Current) Consultant: Milpark Business School; Past - CFO, Requisite Business Solutions. He is a member of the Institute of Bankers SA

16:00 Network, Handing of Training Material

and Certificates of Attendance

DAY TWO


Kindly complete sign and fax or email last page of this form to Escon on the following contacts.

Tel: 011 028 8299 Fax to Email: 086 652 0176: Email:

[email protected]

Sales executive: Boniswa

Group Bookings and Discounts:

Register 7 delegates simultaneously and receive an additional 8th ticket free.

Please note only one discount applies - no 2 discounts can be combined!

The signatory must be authorised to sign on behalf of the stated company. I acknowledge that I have read and understood all of the Payment Methods, Policies and Terms & Conditions. Name... Designation . Email. Date..... Signature.... Account name: ESOH Consulting cc (ESCON)

Bank Name: First National Bank

Account No: 62162399226

Brach Code: 256505

Branch Name: Melville - Johannesburg

Account Type: Ordinary Cheque Account

REGISTRATION AGREEMENT FORM Payment Policy

Payment In order to secure your registration, payment is due in full upon receipt of your invoice Right of admission Escon reserves the right to refuse admission to the training course where evidence of registration form cannot be shown Please note The fee for attending this training course

includes lunch, refreshments and detailed training course

materials.

.

Terms and Condition of Escon

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By signing and returning the registration form, the authorising signatory

or his/her delegate on behalf of the organisation or individual is subject

to the following Terms & conditions:

Confirmation your registration will not be confirmed until such time

when an Escon Registration Form with names of delegates attending the

course has been received.

Delegate Substitutions Delegate substitution is welcome before the

training course begins and do not incur any additional charges.

Delegate Cancellations

All delegates cancellations must be received in writing and

for any cancellations received 7 working days before the start

of a training course, will issue a credit voucher for the value of

the course will be issued to the delegate which will be valid

for one year to be used for a similar course within the year.

For any cancellations received less than 7 working days before

the start of the training course, the full fee will be payable and

no refunds or credit vouchers will be issued.

If a registered delegate does not cancel and fails to attend the training course, the delegate will be entitled to make full

payment of the training course


Documents

Ireegular & Unathaurised 2015