Docstoc

INSTITUTE OF CHARTERED ACCOUNTANTS GHANA

Document Sample
INSTITUTE OF CHARTERED ACCOUNTANTS GHANA Powered By Docstoc
					THE INSTITUTE OF CHARTERED ACCOUNTANTS [GHANA]
                      [ICAG]




            FIVE-YEAR STRATEGIC PLAN
                   [2006– 2010]
TABLE OF CONTENTS

SECTION I: BACKGROUND INFORMATION
                                                                                                        PAGE
1.1     Introduction ------------------------------------------------------------------------------       3
1.2     The Chartered Accountants Act ------------------------------------------------------              3
1.3     Organizational Analysis and Structure ---------------------------------------------               3
1.4     Membership Statistics -------------------------------------------------------------------         4
1.5     Prevailing Challenges ------------------------------------------------------------------          4
         1.5.1   External Factors ---------------------------------------------------------------         4
         1.5.2   Internal Factors ------------------------------------------------------- --------        5
1.6      Future Outlook --------------------------------------------------------------------------        5
1.7      Strategic Themes ---------------------------------------------------------------- --------       5

SECTION II: VISION, MISSION AND OBJECTIVES
2.1     Introduction --------------------------------------------------------------------------------     6
2.2     Revised Vision -----------------------------------------------------------------------------      7
2.3     Revised Mission ---------------------------------------------------------------------------       7
2.4     Statutory Goals ----------------------------------------------------------------------------      7

SECTION III:           STRATEGIC ANALYSIS
3.1     Background --------------------------------------------------------------------------------      8
3.2     Assessment of ICAG’s Operating Environment ----------------------------------                    8
          3.2.1  The External Environment ------------------------------------------------               8
3.2.2   Driving Forces Considered In Developing Strategy [Options] -------------------                  10
          3.2.3  Political & Legal/Regulatory ---                                                       10
          3.2.4 Competition --- -------------------                                                     11
         3.2.5 Economic and Market Forces -------------------------------------------------             11
         3.2.6 The Need To Transform ICAG -----------------------------------------------               11
3.2.7    Strength, Weakness, Opportunities and Threats [SWOT] – Assessment --                           12

SECTION IV: Secretariat
4.1     Introduction -----------------                                                                  14
4.2     Existing Organizational Structure ---------                                                     14
4.3     Future Plans                                                                                    14
            4.3.1 Secretariat ---------------                                                           14
            4.3.2 Information Technology and Other Logistical Requirements -------                      20
            4.3.3 Accountancy Village -------                                                           20

SECTION V:           FUNDING/RESOURCING
5.1     Funding and Resourcing ---------                                                                21
5.2     Introduction ---------                                                                          21
5.3     Revenue -------------                                                                           21
5.4     Strategic Investment Plan ----------                                                            22

SECTION VI:            ACTION PLAN -----------                                                          23




                                                                 2
SECTION I:       BACKGROUND INFORMATION

1.1      Introduction

The transformation process in the accountancy profession and the global business environment
necessitate regular and timely adjustments in the corporate direction of the Institute. It is in this
connection that this strategic plan is proposed for adoption and implementation to bring the
ICAG in tune with the current realities.

1.2      The Chartered Accountants Act

ICAG is the national organization for the accounting profession in Ghana. Prior to its coming
into being, the two main accountancy bodies registered and operating in Ghana were:
 The Association of Accountants in Ghana; and

     The Society of Ghanaian Practising Accountants.

ICAG was established in 1963 by an Act of Parliament – the Chartered Accountants Act 1963
(Act 170) (Appendix 1) to replace these two Institutions. The ICAG was created as a body
corporate with perpetual succession. This means that as a body corporate, the ICAG could sue
and be sued in the corporate name.

ICAG’s members reside largely in Ghana but have excelled in many other countries in Africa
and in a number of International organizations beyond Africa. The ICAG’s international
outlook and connections are reflected in its membership of regional and international
professional organizations such as the Accountancy Bodies in West Africa [ABWA] and the
International Federation of Accountants [IFAC].

1.3      Organizational Analysis and Structure

The Institute is governed by an elected Council, made up of eleven members, 7 of whom are
elected by members and 4 appointed by the government of Ghana. Members are elected for a
term of two years, but are eligible for re-election. The President of the Institute is also elected to
serve for a period of two years and is eligible for re-election for another two-year period. The
Council is the highest policy making body for the accountancy profession in Ghana. Most of the
Council’s work is done through regular (standing) and adhoc committees. The standing
committees include:

        Executive Committee

        Admissions Committee

        Education & Training Committee

        Finance Committee

        Examinations Committee


        Professional Standards and Ethics Committee


                                                  3
       Publications and Public Relations Committee

       Technical and Research Committee

       Member Services Committee

       National Affairs and Parliamentary Committee



There is a secretariat of the Institute, which is positioned to complement the efforts of Council
and is headed by the Chief Executive.

1.4     Membership Statistics

The membership of the Institute as at end of 2005 stood at 1,160 with 905 in good standing.

1.5     Prevailing Challenges

The challenge now is for the ICAG to reorganize its activities and programmes to overcome the
problems that militate against its quest to produce more accountants for the nation. The
challenges and problems have been grouped into external and internal factors.

1.5.1   External Factors

Competing Vocations

The ICAG is facing significant competition not only from the other professional accountancy
bodies but also from other upcoming disciplines such as the computer profession, and the
introduction of new and flexible MBA programmes in some local and foreign universities.

The greatest challenge being faced now comes from the computer profession. The increased use
of accounting software has eliminated a very significant proportion of traditional accounting
work. This has resulted in lowering the demand for certain types of accounting services
especially at the clerical level. It is now evident that possession of computer experience has
become a prerequisite for securing work in most accountancy positions.

The University of Ghana [UG] and the Ghana Institute of Management and Public
Administration [GIMPA] have both introduced executive MBAs in their curricula. There is also
a proliferation of distance-learning MBA programmes from a number of well-reputed foreign
universities, such as Leicester, Hull and Manchester in UK. Since the public is not well informed
of the differences in the disciplines, the products of these universities do compete with
members of ICAG for accounting and financial related position in both the private and public
sectors




                                               4
1.5.2   Internal Factors

Funding

The Institute’s funding sources are limited to income from members and students. The limited
resources have prevented the Institute from undertaking projects with significant financial
impact, that could strengthen its position as leader in accountancy matters in Ghana. Some
recent experiences have, however, exposed the critical nature of this particular issue and these
include;


       Government’s withdrawal of financial support to ICAG.

       Increased competition.

       Development of a permanent school to train accountants

       Implementation of changes in the Accounting and Auditing Standards.

Human Resources

Even though ICAG has been operating in Ghana for nearly 43 years, it has not been able to
reward and motivate its staff well enough to retain their employment and commitment

1.6 Future Outlook

The future presents enormous challenges if ICAG is to develop into a viable self-sustaining
Institute with respected presence in Ghana, and Africa at large. The changing role of the
accountant, competitive pressures and user sophistication demand an active and flexible
approach towards issues.

1.7 Strategic Themes

To meet the challenges ahead, and to transform ICAG into an independent self-financing
Institute, some strategic themes have been identified on the basis of the key driving forces that
affect the business of ICAG and its distinctive capabilities. These strategic themes include:

       Concentrating on making student enrolment attractive to capture the huge number of
        students who are not registered;

       Establishing ICAG Village [College] to improve and support the training of accountants;

       Rationalizing existing services and making them more efficient through technology.

       Introducing the graduate conversion courses to enable intelligent and outstanding
        degree holders to undergo two years training in Accounting and Finance (after
        graduation), before ICAG final certificate is awarded to them;

                                               5
         Introducing conversion courses for the award of university degrees to ICAG non-
          graduate student who have passed various levels of the Institute’s examinations;

         Creates a viable Secretariat through adequate financial and human resourcing to ensure
          efficient and effective delivery of services;

         Make activities attractive to entice all qualified accountants to register as members of the
          Institute.

         Enforcing the powers vested in the ICAG by the Act of Parliament – the Chartered
          Accountants Act 1963 (Act 170), as the sole regulator of the accountancy profession in
          Ghana;

         Reviewing and revising the Members Newsletter, “The Professional Accountant”, as an
          aid to members and income generating activities for the ICAG that provide useful and
          relevant information on the various aspects of the world economy, and the
          developments in the accountancy profession; and

         Reviewing and revising the Students Newsletters as an income generating activity that
          focuses on training and provision of the necessary information that will assist students
          to prepare adequately for the Institute’s examinations.

         These strategic themes have been developed into action plans for implementation. The
          development and implementation of these plans would require changes to the legal
          framework, the processes and systems, and organizational structure of the Institute to
          focus on the needs of the market and for effective delivery. The involvement of the
          various committees, administration and members would be required to ensue that a
          strong relationship, commitment and ownership, and a clear understanding are
          developed for the strategy implementation process.


SECTION II: VISION, MISSION AND OBJECTIVES

2.1       Introduction

The strategic plan of the ICAG has been developed through the collaborative efforts of some
members with the support of administration. The plan considers the Institute’s Distinctive
Capabilities and Key Driving Forces, which have established the bases for urgency in the need
to both develop a plan and focus on its speedy implementation. In all aspects, the plan is driven
by the determination to be focused on the members and students.

In order to operationalize the achievement of the objectives the Institute has reviewed the vision
and mission statements and redefined specific strategies whose outcomes will directly and
measurably contribute to their fulfilments.




                                                   6
2.2    Revised Vision

To be a premier Institute of Chartered Accountants in Africa by:

      Having a technically competent and appropriate membership.

      Providing services to the highest professional standards to industry, commerce and
       government.

      To be recognized for its highest standards of competency, integrity and excellence.

      Providing the best services to members and students at all times

      To lead in tune with developments in the profession through continued and active
       membership of Regional and International Accountancy Bodies; and

      To be accepted as an Authoritative body in accountancy and in financial matters.


2.3    Revised Mission

In formulating a strategic plan, strategic objectives, though broad, must be outcome-oriented
and capable of being operationalized in measurable time-bound strategies with their associated
annual work plans and budgetary requirements. This will allow for the logical development of
an appropriate organizational structure and financial management plan for internal funds
generation and external fund raising.

Modified Mission Statement:

“To be a premier Institute of Chartered Accountants in Africa, and to be accepted as an
authoritative body in accountancy and financial matters, satisfying the expectations of
members, students and stakeholders, providing a full range of cost efficient and high quality
services nation-wide, through the recognition for highest standards of competency, integrity
and excellence”.

2.4    Statutory Goals

The ICAG statutory goals for the achievement of the mission statement, and outlined in Section
9 of Act 170 are:

      To conduct or provide for the conduct of the qualifying examinations for membership of
       the Institute or for registration as a registered accountant under this Act and to prescribe
       or approve course of study for such examination;

      To supervise and regulate the engagement, training and transfer of articled clerks;




                                                7
       To specify the class of persons who shall have the right to train articled clerks and to
        specify the circumstances in which any person of that class may be deprived of that
        right;

       To maintain and publish a register of chartered accountants and of practising
        accountants;

       To secure the maintenance of professional standards among persons who are members
        of the Institute and to take such steps as may be necessary to acquaint such persons with
        the methods and practices necessary to maintain such standards;

       To maintain a library of books and periodicals relating to accountancy and to encourage
        the publication of such books; and

       To encourage research in the subject of accountancy and generally to secure the well-
        being and advancement of the accounting profession.

The achievement of the mission is to be implemented by focusing on operational alignment
over the next five years to put the Institute in a position to effectively and efficiently compete
with the other professional accountancy bodies such as those stated in paragraphs 1.4 and 1.5.1
above.

The Strategic Themes, which have been identified and within which the Institute will be
implementing its mission for the next five years are stated in paragraph 1.6 of section 1. Given
the current competitive position, this is critical as a first step. Towards the end of the first year,
performance will be assessed on the implementation of these themes to provide those that
would be appropriate for implementing the mission in the four years thereafter.



SECTION III: STRATEGIC ANALYSIS

3.1     Background

ICAG has been operating in Ghana for more than 42 years. Over these years some progress has
been made in consolidating its presence in Ghana. There are, however, strong feelings among
members, students and the general public that more could still be achieved if proper and
appropriate strategies are adopted and implemented by the Institute. The paragraph below
assesses the ICAG operating environment and its strengths, weaknesses, opportunities and
threads [SWOT].

3.2     Assessment of ICAG Operating Environment

3.2.1   The External Environment

At the dawn of the 3rd millennium, globalization has become a key driver of major business
enterprises. The world is experiencing the convergence of technology and communications and
knowledge trading in becoming a reality.

                                                  8
Major businesses including major accountancy organizations have embarked on provision of
quality services across the world in a seamless way.

The accountancy profession is thus impacted in several ways.        The major accountancy firms
now provide diversified services outside their traditional audit   and attestation functions. For
value added services, accounting professionals are required to     understand business, have in-
depth knowledge of industries, and develop new skills to           cope with the ever-changing
environment and demands of their jobs.

Pressure has grown on the profession to provide standardized services. Demands on uniform
accounting and auditing standards have become great as manifest in the need to converge with
International Financial Reporting Standards, International Auditing Standards and
International Public Sector Accounting Standards (IPSAS).

Government and public sector organizations are increasingly using services of accountancy
firms to provide financial information for decision making, infuse integrity into their operations
and are recruiting more accountants to improve governance, transparency and better use of
scare resources.

In Ghana, the government has, over the last 20 years, initiated economic reform programme
which aims at liberalizing the economy from a controlled to a market-driven one.

Support has been obtained from the donor community as spearheaded by the International
Development Association [IDA] and the World Bank. Other donors, including the British
DFID, Canadian CIDA, German GTZ, Danish DANIDA, etc. among others, developed their
own country strategic plans to guide them into areas of assistance they will provide in the
economic reform programme.

Resulting from the initiatives of both the government and the donors, certain services were
demanded to which accountancy firms in Ghana responded. Examples:

      Institutional reform

      Project accounting

      Project financing

      Project management

      Design of accounting systems

      Restructuring of organizations

      Human resources development

      Information technology systems

      Computerization of accounting & management information systems

      System re-organization

                                                9
       Mergers and acquisitions

       Operational manuals

       Accountancy manuals

       Liquidation/receiverships

       Special studies, etc.

As a direct result of the economic reform, liberalization and renewed investment drive, the
country did experience increased economic activity.

New businesses are developing through the use of the Internet. Virtual organizations are
emerging, raising issues of the need for uniformity, difficulty in determination of resident
status, off-shore activities and myriads of other developments that affect the profession, and
which would require the profession to become more proactive and agile.

Donors, and the Government’s confidence in the accountancy profession to provide leadership
and technical inputs have been amply demonstrated through involvement of the professional
firms in almost every facet of the reforms, from strategy formulation to implementation.

Members face new challenges and the macro – economic environment is now “enabling
enough” for the younger professionals now venturing into practice.


3.2.2 Driving Forces Considered in Developing Strategy [Options]

Introduction

The driving forces include the following:

3.2.3   Political and Legal/Regulatory

       Possibility of Government influence in the interest of broad economy.

       More deregulation in the economies of the Sub – Region.

       Existence of Ghana Stock Exchange and its attendant demands.

       Demands from the Securities Regulatory Commission.

       Demands from external investors for financial reporting.

       Monopolistic position of the Institute may change when other bodies gain political
        demand to regulate the profession.




                                               10
3.2.4   Competition

       Specialization in the profession.

       Opening of offices by other professional organizations and offering better services to
        their students and members.

       Strategic plan of expansion by other professional bodies to developing countries.

3.2.5   Economic and Market Forces

       Desire to meet shortage of accountants in the economy.

       Increasing business activity resulting from liberalization, and also desire for more
        sophisticated services.

       Increasing use of technology and communication as tool for business [e-commerce, e-
        business etc.].

       Increasing competition from external accountancy bodies, and requests by sub-
        professional bodies for recognition.

       Increasing risk faced by professionals, in view of sophistication of business fraudsters

       Increase in the use of accounting software and computers generally in business.

       Increased demand for specialized and business advisory services.

       Leadership expectation from government and business leaders in accounting and
        financial advisory services.

       Increase in demand for quality service, and independence.

       Increasing sophistication and introduction of myriads of products into the financial
        industry [i.e. banks and non-bank financial institutions, insurance etc.].

       Need to keep members up to date to deliver quality services.

       Decentralization by government and capacity building at local government levels.

3.2.6   The Need to Transform ICAG

ICAG is to be transformed into an independent self financing and self-sustaining Institute for
the training of accountants and the regulation of the accountancy profession in Ghana. ICAG
has to create and build confidence in both the students and members and also capitalize on its
competitive advantage in Ghana to dominate in training and in the provision of accountancy
services in the country. In order to enhance its competitive advantage, ICAG would need to
transform its organization to one that focuses on efficiency in its key activities and processes
within the Institute.



                                                11
3.2.7   Strengths, Weaknesses, Opportunities and Threats [SWOT] – Assessment

The summary is as follows:

STRENGTHS

       Council composed of seasoned accountants of diverse backgrounds

       Committee system to support Council

       Committees reflect the range of issues the Institute deals with

       Institute has a well-established examination system

       Has a website which helps to communicate effectively with stakeholders.

       Has an enabling long standing legislation, dating as far back as 1963

       The Institute is recognized and its products are accepted in the market place

       Has international affiliations, like membership of ABWA and IFAC

       Competent Secretariat and staff to implement Council’s decisions

WEAKNESSES

   Not very pro-active in relation to changes in the profession worldwide

   Lacks outward affiliations to bench mark with model Institutions

   Lacks financial resources to train more accountants for the economy

   New developments in the market and in profession are not analysed and provided for at
    policy or operational levels

   Not pro-active in dealing with National Affairs and International issues

   Major accountancy firms are not tapped into committee levels for appropriate technical
    support and training

   Lack of specialised Accountancy Training Schools and facilities

   Weak linkage with commerce and industry

   Weak and ineffective District Societies

   Weak IT infrastructure

   Gradual loss in professional ethics
                                                12
   Inadequate Continuing Professional Development programmes and training

   Inadequate number of tuition providers who have theoretical knowledge and practical
    experience with respect to applicable standards and codes.

   Monitoring and control of practical experience requirement is inadequate in Ghana

   Non-existence of independent Accounting Standard Body

OPPORTUNITIES

   Large pool of students willing to become members of the accounting profession can be
    trained to become accountants and therefore improve membership and revenue.

   Economy has room for more accountants

   Market requires ICAG qualifications

   Accountants trained can work in other African countries Nigeria, Republic of South Africa
    etc and in international organizations

   Greater demand for accountants as economy grows.

   Leveraging on technology to support training of students i.e. distance learning ,video, tapes
    etc

   Selected donor organization willing to support well- packaged projects for training in
    accountancy

   Collaboration with academic and bigger firms to deepen technical base of the profession

   Opportunity to harness substantial resources, both capital and human through the
    network of members

   Ability to influence the restructuring of the existing regulatory framework to reflect the
    realities of today and to strengthen the Institute’s position

   Potential to significantly expand membership through recruitment of non-registered
    qualified accountants and the creation of additional categories of membership to cater for
    others – e.g. the Ghana Association of Accountancy Technicians

   Potential for reciprocity of membership by regional accountancy bodies.

THREATS

   Competition for students and membership from other accountancy bodies


                                               13
     Competition from other professions and other qualifications

     Lack of reciprocity by other recognized accountancy bodies

     Public perception about ICAG is a closed shop.




SECTION IV:      SECRETARIAT

4.1      Introduction

In this section we give an overview of the existing organizational structure, the current human
resource status, and the future plans of ICAG. We also highlight the need for establishing an
Accountancy Village equipped with modern facilities capable of training the 21-century
accountant and updating the knowledge of members.


4.2      Existing Organizational Structure

There is a Secretariat, which implements the policies of Council, and is headed by Chief
Executive. It also has three directorates; Technical and Research, Member Services, and
Administration and Students Services. Other key positions are the Finance Manager, Assistant
Examinations Manager, and Publications and Public Relations Manager.
It is the Secretariat that carries on the day-to-day operations of the Institute, playing a key role
in the organization of students, examinations, member services, training of students etc.

The present manpower strength stands at 33 out of which 26 are in the junior/supervisor
grades and 7 in the managerial class.


4.3      Future Plans
4.3.1    Secretariat

The current structure would be maintained.

Each of the departments and officers would be responsible for a range of activities including
those listed below:

Chief Executive’s Office

The CE’s Office will be responsible for overseeing and co-coordinating the activities of the four
main departments of the Secretariat viz. Member Services, Finance, Administration and
Students Services, and Technical and Research. It is to ensure the efficient and effective
operations of the departments. Additionally the CE’s office will have a Public Relations
Manager to handle all public relations issues.




                                                14
The Office will have direct relationship with ICAG members, aspiring ICAG members, ICAG
Associate members, Local and International Professional bodies, Policy Formulators in
Government, etc.


Duties and Responsibilities
To:
      Improve service delivery to Council, Members, Staff and Students;

      Support and coordinate activities of Council

      Ensure efficient and prompt implementation of Council policies;

      Coordinate activities of Council and the three Directorates;

      Ensure harmonious relationship between Secretariat and Council

      Build institutional capacity;

      Ensure efficient human resource management and successful accomplishment of the
       Institute’s recruitment, retention and staff development programmes;

      Ensure harmonious relationship with Council, management and unionized staff;

      Maintain a fair and acceptable grievance procedures;

      Establish and maintain transparent procurement procedures.


Director, Administration and Student Services

Duties and Responsibilities
To:

      Promote high standards of pre-qualification education and training in order to provide a
       strong knowledge foundation for future members;

      Ensure efficient management, execution and successful accomplishment of the
       Institute’s Prequalification, Education, Training and Development programmes;

      Ensure efficient human resource management, and successful accomplishment of the
       Institute’s recruitment, retention, and staff development programmes;

      Manage student admissions, database update, and statistics and all other student
       services.

      Ensure review of ICAG and GAT syllabi and programmes from time to time;

      Manage regular production of high quality student newsletter/information bulletins;
                                               15
     Manage library facilities;

     Ensure efficient running of ICAG schools and classes;

     Coordinate adoption, implementation and compliance of international accounting
      education standards;

     Coordinate accreditation activities and processes of institutions offering professional
      and technician programmes in accountancy;

     Manage personnel matters including designing conditions of service and performance
      evaluation mechanisms;
     Monitor compliance with statutory labour requirements and other matters;

     Maintain a fair and acceptable grievance procedures;

     Establish and maintain proper procurement, custody and control of inventory;

     Help in providing logistical support for major activities of the Institute;

     Oversee office administration matters including security and cleanliness;

     Conduct and review performance appraisal for staff in the Administration and Students
      Services Directorate;

     Provide a forum for interaction among students;

     Vigorously pursue increase in female student registration;

     Coordinate the activities, and service the meeting of:

      (i)     Education and Training Committee
      (ii)    Publications and Public Relations Committee
      (iii)   Admissions Committee (for students)

     Any other matters as may be directed from time to time by the Chief Executive.


Member Services Department

Duties and Responsibilities
To:

     Endeavour to protect the financial interest of the nation through services rendered by
      the accounting profession;

     Liaise with, and support the Professional Standards and Ethics Committee in the
      develop and maintenance of internationally comparable accounting standards;

                                               16
   Register members entitled to engage in public practice;

   Register accounting firms entitled to engage in public practice;

   Provide support services for members;

   Develop guidelines for professional practice;

   Monitor the level of compliance by practitioners with professional standards in the
    performance of the attest function and professional practice generally;
   Manage regular production of high quality professional journal, newsletter/information
    bulletins;

   Ensure efficient management, execution and successful accomplishment of the
    Institute’s post qualification education, training and development and programmes;

   Help members develop and maintain their professional competence through regular and
    relevant continuous professional development programmes;

   Manage and conduct regular continuing professional development programmes;

   Coordinate peer review programmes for professional firms;

   Manage members admissions, database update, and statistics as well as other student
    services;

   Encourage all professionally qualified accountants to register as members of ICAG;

   Ensure successful registration and regulation of practising firms;

   Coordinate accreditation of professional bodies whose members may practise as
    professional accountants in Ghana;

   Coordinate adoption, implementation and compliance of international accounting,
    auditing and ethical standards;

   Vigorously pursue increase in female membership registration;

   Vigorously ensure establishment and sustainability of District Societies;

   Liaise with other accountancy bodies in Ghana and globally with a view to accessing
    technical materials for adoption, circulation, etc to enrich the base of the profession;

   Ensure disciplinary action in terms of Act 170 and to give approval for the publication in
    the The Professional Accountant of the names, reasons and action taken against
    members who have been disciplined during the period;

   Provide a forum for interaction among professional accountants;

                                            17
     Enhance and promote the image of the professional accountant;

     Conduct and review performance appraisal for staff in the Members Services
      Directorate;

     Service the activities and meetings:

      (i)   Professional Standards and Ethics Committee
      (ii)  Member Services Committee
      (iii) Admissions Committee (for Members)
     Any other matters as may be directed from time to time by the Chief Executive.



Finance Department [FD]

Duties and Responsibilities
To:

     Manage the finance function in accordance with laid down policies, including
      accounting and financial management information;

     Supervise the preparation of monthly, quarterly and annual financial reports;

     Evaluate and recommend improvements to financial procedures and internal control
      system;
     Prepare annual budget estimates;

     Manage salary administration of managers and staff (payroll);

     Ensure development and efficient investment planning/execution at ICAG;

     Help in providing logistics, facilities for major activities of the Institute e.g. exams,
      functions etc.;

     Evaluate and recommend improvements to the financial procedures and the internal
      control system;

     Manage credit;

     Manage investment of surplus funds;

     Co-ordinate the activities of the Finance Committee.

     Any other matters as may be directed from time to time by the Chief Executive;




                                             18
Technical and Research Department

Duties and Responsibilities
To:

     Promote the advancement and relevance of accountancy as the pre-eminent language of
      business and source of information about economic activity;

     Manage/supervise ICAG examinations;

     Manage the production, review and update ICAG and GAT question banks;

     Ensure that regular programmes for setting of accounting/auditing standards are in
      place;

     Ensure existence of technical project teams that will regularly produce technical
      papers/inputs in economic governance and financial accountability;

     Ensure research is undertaken on technical and emerging issues;

     Coordinate adoption, implementation and compliance of international accounting and
      auditing standards.

     Extend and promote knowledge and application of accountancy through research and
      publications;

     Liaise with other research institutions and universities to ensure cross fertilization of
      research findings;

     Ensure regular provision of technical inputs into national budgets, public sector and all
      other areas of accountancy practice and education;

     Conduct and review performance appraisal for staff in the Technical and Research
      Directorate;

     Coordinate the activities of the:

      (i)     Technical and Research Committee
      (ii)    Examinations Committee
      (iii)   Accounting Standards Board

     Any other matters as may be directed from time to time by the Chief Executive.




                                             19
Primary Committee Responsibility


Chief Executive         DAS                     DMS                     DTR

● Council               ●Education      and ●Professional               ●Technical and
                        Training Committee  Standards and Ethics        Research
●Executive
Committee           ●Publication       and ●Member     Services ●Examinations
                    Public       Relations Committee
●Finance Committee  Committee                                   ●Accounting
                                           ●Admissions          Standards Board
●National Affairs &                        Committee
Parliamentary
Committee



Each of the sections under the department will be manned by a well-qualified and experienced
graduate/professional.


4.3.2   Information Technology and Other Logistical Requirements

The Information Technology [IT] base is weak at the Secretariat. The Secretariat has limited
computer equipment and software to work with. Almost all operational activities are
performed manually. This makes communication between the Secretariat and all stakeholders
very poor, which consequently affects the income generation capabilities of ICAG. The manual
processing of data also affects students registering for ICAG examinations.

IT would be improved at the Secretariat with sufficient computers for and appropriate software
to capture all financial and other information. Electronic mails, modern fax machines would be
made available to improve upon the communication system at the Secretariat.

All broken down and obsolete office equipment will be replaced with modern ones.



4.3.3   Accountancy Village


The Council of ICAG considers the development of a College of Accountancy as very crucial.
This is because there is no professional accountancy school in Ghana currently. Students
therefore have to study on their own with occasional support from the ICAG Evening Classes.
This situation has affected the students pass rate significantly.

Within the five-year plan period, the ICAG Council would complete the construction of the
College of Accountancy. The College would have lecture halls, library complex, offices, car

                                             20
pack, catering and accommodation facilities. It would also have conference facility suitable for
all occasions for both members and the general public.
The Council also plans to develop the College beyond accountancy level training with the long-
term objective of offering degree courses in finance and business management. This will not
only broaden its market base but will also offer opportunities for ICAG members wishing to
broaden their knowledge especially those seeking access to university level education for the
first time.



SECTION V:      FUNDING AND RESOURCING

5.1    Funding and Resourcing

5.2    Introduction

The Government of Ghana [GOG] has withdrawn its subvention to ICAG. ICAG, therefore, has
to step up its activities to generate more income internally to cover the shortfall on the
withdrawal of the GOG subvention.

5.3    Revenue

The current internally generated funds [IGF] include the following:

      Membership admission fees

      Members subscription

      Students admission fees

      Students subscription

      Examination fees

      Students Transcript

      CPDs



The factors that would assist the ICAG to achieve the revenue objective include:

      Satisfying the needs of students and members

      Improving service delivery;

      Embarking on rigorous training of staff;



                                               21
      Encouraging all professionally qualified accountants to register as members of the
       ICAG;

      Rationalizing the minimum entry requirements to levels accepted by the universities;

      Stocking the existing libraries and opening new ones in the regional capitals;

      The construction of an Accountancy College in Accra;

      Imposition of special levies;

      Fund raising activities.


5.4    Strategic Investment Plan

The major investment activities that the Council of the ICAG has planned to undertake during
the five-year period are shown below


Disbursement Plan


        DESCRIPTION                    YEAR 1     YEAR 2      YEAR 3        YEAR 4      YEAR 5

                                       USD’000    USD’000     USD’000       USD’000     USD’000

Setting up information data base
and resource centres                                  300     120

Acquisition and installation of
computers and other office
equipment                                25             32

Construction and furnishing of
Accountancy Village                     160           1100      2100

Adoption and dissemination of
IFRS and IPSAS and IAS                   15           100           43

Developing frame work for
accountancy  education and
practice                                              200           77

Restructuring of the Secretariat                       100       100        100         100


Total
Disbursement                            200            1832     2440       100           100


                                                 22
Financing Plan


             DESCRIPTION              YEAR 1       YEAR 2      YEAR 3       YEAR 4       YEAR 5

                                      USD’000      USD’000     USD’000      USD’000     USD’000


A:    College Levy
      (Members)                                       60          70          80

B:   College Levy
     (Students)                                      200          300        400

C:   College Donation
     (Donors)                                        300          200

D:    College Donation
      (GOG)                                          1500         500

E:   College Donation
     (Companies & Organizations)                     300          200

F:   IGF                                200          350          700         600

     Total                              200         2,710       1970         1080


As can be seen from the Disbursement Plan, the total amount of about USD7.2 million would be
required for the restructuring and enhancing the revenue base of the ICAG during the five-year
period. The single highest expenditure item during the five-year period is the construction of
the Accountancy Village amounting to about USD6.2 million.

Restructuring of the Institute’s Secretariat equipped with computers and other modern office
equipment is also estimated at about USD500, 000.

The Council of the ICAG would have to approach external donors to support about half of the
construction cost of the village. The Council would additionally seek assistance from some
reputable companies and organizations in Ghana. Members and students on their part would
pay development levies towards the project


SECTION VI:      ACTION PLAN

The various planned activities of the ICAG during the five-year Strategic period are shown in
the Work Plan in the following three pages. The details of the activities are stated in the
paragraphs 6.1 to 6.4 of this document.



                                              23
             6.1
                                                     STUDENT SERVICES
                                                    Professional Students
                                     Ultimate Goal: To Increase Student Enrolment By
                                                 About 15000 In Five Years

GOAL                 TARGET AND                     SPECIAL ACTIVITIES           PERFORMANCE                    TARGET DATE
                     ACTION/PLAN                                                 INDICATORS

 - Maximise          - Raise interest in general    - Review entry               - Increase student             - 2007
  student intake     public about ICAG and its      requirements                 membership
                     programmes
                                                    - Mass media campaign        i.     1st Year-1200           - 2006
                                                                                 ii.    2nd Year-2000           - 2007
                                                    - Outreach programmes        iii.   3rd Year-3000           - 2008
                                                    e.g. career counselling      iv.    4th year-4300           - 2009
                                                                                  v.    5th Yeaar-4500          - 2010

                     - Establish resource centres   - Establish well furnished   - Two main libraries           - 2007
                                                    libraries                    established in Accra and
                                                                                 Kumasi as well as
                                                                                 furnishing all the
                                                                                 Polytechnic libraries
                                                                                 running the CA course

                     - Produce study materials      - Produce:                   - Availability of manuals      - 2006
                                                    i. Students Manuals          i. Part 1 (4 subjects)         - 2007
                                                                                 ii. Parts 2 and 3
                                                    ii. Students Newsletters     (4 subjects)
                                                    iii. Q & A (Solutions)       Quarterly                      - 2006
                                                                                 Quarterly

                                                    iv. Revision Kit             - Availability of manuals on   - 2006
                                                                                 the internet

                                                    v. Sub contract
                                                    a. Pass cards                - Availability of tapes and    - 2008
                                                    b. Audio tapes & CDs         CDs for reading subjects

- Attract tertiary   - Review exemption             - Identify equivalent        - Form a committee             - On going
 level students      policies                       courses at Tertiary
                                                    Institutions

                     - Campus Outreach              - Organise students fora     - Visit all tertiary           - 2006 - 2007
                     programmes                                                  institutions
                                                    - Support students’ group
                                                    activities with finance,
                                                    materials, human
                                                    resource etc.

                                                    - Involve District
                                                    Societies in students’
                                                    activities within their
                                                    localities
                                                                  24
                      - Short term placement of       - Compile register of          - Establish a desk to         - 2007
                      students with organizations     willing organizations          coordinate

                      - Enter into arrangement        - Identify interested          - Form a committee to         - 2007
                      with some Tertiary              reputable universities for
                      Institutions for conversion     collaboration                  coordinate


                      - Introduce the graduate        - Promote similarity in        - Conversion committee        - 2007
                      conversion course scheme        the design of syllabuses       formed to:
                      where graduates in all          for the Tertiary
                      business-related courses are    Institutions                   i. Identify Tertiary
                      converted to passes in                                         Institutions where business
                      certain levels of ICAG                                         related courses are taught
                      examinations
                                                                                     ii. Design common syllabus
                      - To award degrees to                                          with the Institutions
                      partly qualified non
                      graduate students of ICAG
                      who opt for the degree

                      - Enter into an arrangement     - Identify and link up         - Form a committee to         - 2007
                      with some reputable local       with reputable                 coordinate
                      universities to organize “top   universities to design
                      up” programmes for the          “top-up” programmes
                      award of degree to partly
                      qualified non – graduate
                      students of ICAG who
                      opted for degree

                      - To Award of degree to
                      partly qualified non-
                      graduate
                      Students of ICAG



- Retain registered   - Improve quality of            - Liaise with and              - increase in number of       - 2007
 students             services in terms of tuition,   strengthen private and         lecturers who set and mark
                      especially, ethics, career      public accredited              ICAG exams
                      counseling and guidance         accountancy schools in
                      and other supports to           the training of students
                      minimize students’
                      frustrations                    - Re-organise Institute’s
                                                      Weekend School in terms
                                                      of timing, lecturers and
                                                      study materials

                                                      - Identify lecturers at
                                                      tertiary institutions to set
                                                      and mark ICAG questions
                                                      and answers

                                                                   25
                                                  - Accountancy Village         - Structures put up             - 2007

                  - Acquire two acres of land     - Construction of students    - Structures put up             - 2008
                  from University of Ghana,       hostel
                  Legon
                                                                                                                - 2007
                  - Early release of              - Adopt pure conference       - Publish results in six (6)
                  examinations results            marking                       weeks




                                           GAT STUDENTS
                             Ultimate Goal: Increase in GAT Student Membership to 7000


GOAL              TARGET                        SPECIAL ACTIVITIES             PERFORMANCE                        TARGET DATE
                                                                               INDICATORS

- Maximise        - Raise interest in general   - Review entry                 - Committee formed to review       - 2006
students intake   public/employers about        requirement                    entry requirement
                  GAT qualification

                                                - Publicise GAT                - Increase in students             - 2006
                                                programme, especially joint    membership                         - 2007

                                                examination programme          vi. 1st Year-200                   - 2008
                                                with ICAN                      vii. 2nd Year-1000                 - 2009
                                                                                                                  - 2010
                                                                               viii. 3rd Year-1500
                                                - Outreach programme           ix. 4th Year-2000                  - 2010
                                                                               x. 5th Year-2300

                                                - Persuade tertiary            - All polytechnics and private
                                                institutions, especially       colleges to run GAT
                                                polytechnics to run GAT        programme
                                                programme                                                         - 2006

                  - Produce study               - Organise training            - Workshops organised              - 2006
                  materials                     workshops for manual
                                                writers

                                                - Commission manual                                               - 2007
                                                writers to write manuals

                                                - Production of materials      - Parts 1, 2, 3 produced           -   2007
                                                                                                                  -   2007
                                                i. Produce Newsletters         - Quarterly                        -   2007
                                                ii. Solutions (Q & A)          - Twice yearly                     -   2006-2010
                                                iii. Revision Kits             -
                                                iv. All materials on the       - Study materials on the           - 2007
                                                                 26
                                              Internet                      internet
                                                                                                              - 2009


                                              - Establish Desk              - Recruit/Appoint Officer         - 2007

                                              - Establish Department        - Recruit/appoint Staff

                   - Establish different      - Entreat Council to re-      - Form Committee of Council       - 2007
                   unit/department for GAT    establish GAT Committee       for GAT
                   at Secretariat
                                                                                                              - Yearly
                   - Re-establish GAT         - Establish contact for GAT   Establish Directory for GAT
                   Committee of Council       Graduates
                                                                                                              - Yearly
                   - Re-activate GAT          - Organise activities for     - Organise
                   Association for members    members (e.g. CPDs)           Workshops/Seminars

                                              - Adopt Code of Ethics        - Organise Induction Seminar




                                              MEMBER SERVICES
                             Ultimate Goal: To Help Members Develop and Maintain
                                            Their Professional Competence

GOAL               TARGET AND                 SPECIAL ACTIVITIES            PERFORMANCE                   TARGET DATE
                   ACTION/PLAN                                              INDICATORS

- To enhance the   - Design appropriate       - ICAG to spearhead the                                     - On going
 competence of     programmes to ensure       establishment of
 members           members are technically    independent Accounting
                   up-to-date and ethically   Standards Board
                   upright
                                              - Organising and enforcing    - Hold nine (9) CPD’s in a    - Ongoing
                                              CPD’s                         year




                   - Secure information for   - Regularly update            - Produce twelve (12)         - 06-4 j’nals + 2 Newslet
                   members knowledge up       members on current            journals in a year and four   - 07-6 j’nals + 2 Newslet
                   date                       developments in the           (4) Students’ Newsletters     - 08-8 j’nals + 4 Newslet
                                              profession and ensure the                                   - 09-10 j’nals +4 Newslet
                                              use of IFAC code of ethics                                  - 10-12 j’nals +4 Newslet

                                              - Liaise with other           - Publish regular articles    - Ongoing
                                              professional bodies for       on ethics; expose and
                                              relevant information          punish wrongdoers


                                                              27
                                               - Publish information in
                                               the relevant periodicals.
                                               Egs Professional
                                               Accountant, Members’
                                               Newsletter

                   - Motivate members to       - Organise workshops for     - One training workshop      - Ongoing
                   be interested in            accountants in Specialised   in specialized areas in a
                   competence enhancement      areas                        year (e.g. Banking,
                   programmes                                               Insurance, Mining)

                                               - Recognition/Awards for     - Award certificates at      - Annual
                                               commitment to                AGM, Conferences etc to
                                               programmes to                individuals, Corporate
                                               organizations/               Bodies, District Societies
                                               individuals




- To enhance the   - Specialised               - Specialised workshops      - Two (2)                    - On going
competence of      programmes for small        for small practitioners,     seminars/workshops for
firms              time practitioners          including IFRS, IPSAS        small practitioners

                                                                            - Improve knowledge of       - Ongoing
                                                                            practitioners


                   - Establish Peer Review     - Review, on sample basis,   - Review at least 30% of     - Yearly
                   Panel                       work of practitioners        total number of firms
                                                                            (including at least 2 “Big
                                                                            Firms”)

                   - Introduce                 - Review adoption on         - Improvements in audit      - Ongoing
                   implementation              sample basis                 assignments
                   guidelines to enhance
                   application of auditing
                   standards



                   - Put Practice Society on   - Register all practising    - Maintain up-to-date        - Yearly
                   a firm footing              firms                        register

                                               - Organise development       - Encourage mergers of       - Yearly
                                               programmes for members       small firms
                                               of Society


                                                                            - Organise                   - On going
                                                                            workshops/seminar on
                                                                            technical matters

                                                                            - Ensure continuity of       - On going

                                                               28
                                                                                   Firms

 - To build sence      - Revive/strengthen         - Provide                       - Increase in number of           - On going
 of belonging and      technical support to        financial/technical support     functional District Societies
 social cohesion       District Societies and
among members          AWAG

                                                   - Secretariat to pay periodic   - Increase in numbers who         - On going
                                                   visits to District Societies    attend District Societies
                                                                                   programmes

                                                   - Encourage social/cultural     - Increase in number of           - On going
                                                   activities/programmes           members that attend ICAG
                                                                                   programmes
                                                                                   - Social get- together            - On going



                                                  SECRETARIAT
                           Main Goal: Improve Effectiveness and Efficiency of the Secretariat


 GOAL                   TARGET                   SPECIAL ACTIVITIES           PERFORMANCE                   TARGET DATE
                                                                              INDICATORS

- Engage and            - Establish              - Review minimum entry       - Executive Committee to      - 2007
 maintain qualified     qualifications and       requirements for all jobs    review the policy
 and efficient staff    ages for key positions

                        - Design appropriate     - Organise in-house and      - Training needs of staff
                        training schemes for     external training courses    assessed                      - 2006
                        staff                    for staff

                        - Institute attractive   - Improve working
                        incentive package        facilities                   - Physical facilities
                                                                              improved                      - Ongoing
                                                 - Review Conditions of
                                                 Service                      - Networking of IT
                                                                              infrastructure installed      - 2007
                                                 - Mechanism for
                                                 promotion to be put in       - Committee formed to
                                                 place                        review Condition of           - Ongoing
                                                                              Service


                        - Acquire large parcel   - For future developments    - Land acquired               - 2007
                        of land on Dodowa
                        Road




                                                                   29
                                          APPENDIX


            THE INSTITUTE OF CHARTERED ACCOUNTANTS (GHANA)
           SUMMARY OF OBJECTIVES, ACTIVITIES AND OUTPUTS FOR
                            2006 – 2008 COUNCIL

OBECTIVES

1.     Service Delivery

       Improve service delivery to members, students, Secretariat and the general public.

2.     Capacity

       Improve capacity, effectiveness and efficiency of Council, Secretariat and staff.

3.     Integrity and Reputation

       Enhance visibility, image and profile of the Institute and the accounting profession.


ACTIVITIES/EXPECTED OUTPUT
     ACTIVITIES/EXPECTED                                              TIME
           OUTPUT                         RESPONSIBILITY             FRAME        COMMITTEE
1. Committees of Council
streamlined and strengthened          Council                       Y1          EXCOM
2. Secretariat realigned and
strengthened                          Council                       Y1-2        EXCOM
3. Coordination of Council and
Secretariat activities                CEO                           Y1-2        EXCOM

4. Registration of firms              DMS                           Y1-2        PSE
5. Adoption and implementation of
accounting standards                  DTR                           Y1-2        TR

6. Peer review                        DMS                           Y1-2        PSE

7. Production of study manuals        DAS                           Y1          ET

8. Harmonisation of GAT and ATS       DAS                           Y1-2        ET & EXCOM

9. Amendment to Act 170               Council/CEO                   Y1          EXCOM

10. 1st and 2nd Phase of school       Council/CEO                   Y1-2        BC
Complex


                                                30
        ACTIVITIES/EXPECTED                                TIME
           OUTPUT                        RESPONSIBILITY   FRAME   COMMITTEE
                                                                  MS
11. Members Handbook                  Council/DMS         Y1
12. District Societies streamlined
and consolidated                      Council/DMS         Y1-2    MS
13. Past Presidents Association
formed and functional                 Council/DMS         Y1-2    MS
14. Accounting Standards Board
reactivated and functional            Council/DRT         Y1-2    TR
15. Formal links with selected
universities forged and operational   Council/DAS         Y1-2    ET

16. Exemption policies streamlined    Council/DAS         Y1-2    AD
17. Mandatory CPD infrastructure
and framework provided                Council/DMS         Y1-2    MS
18. ICAN/ICAG reciprocity
confirmed                             Council             Y1      EXCOM
19. ICAG revision classes
streamlined                           DAS                 Y1-2    ET
20. Regular production of
newsletters, information bulletins    DAS, DMS            Y1-2    PPR
and journals (agree on numbers
where appropriate)
21. Build capacity of Council:
                                                          Y1
     (a) Exam. grading techniques
                                  Council                 Y1-2    EXCOM
     (b) Corporate governance
                                                          Y1-2
     (c) International CPDs
22. Students and members database                                 ET
update                            DAS, DMS                Y1-2    MS
23. Monitoring and compliance
instituted and implemented        Council/DMS             Y1-2    PSC

24. Outreach programmes to attract                                ET
students and members                  DAS, DMS            Y1-2    MS
                                                                  PPR
25. Accreditation of schools and                                  ET
practicing firms                      DAS, DMS            Y1-2    PSC
26. Regular forum for interaction                                 ET
of students and members               Council, DAS, DMS   Y1-2    MS
                                                                  PR
27. Regular provision technical
inputs into national budgets and      DTR                 Y1-2    TR
emerging issues of national and                                   NAP
international interest



                                                31
         ACTIVITIES/EXPECTED                                        TIME
            OUTPUT                          RESPONSIBILITY         FRAME      COMMITTEE

28. Host IPSASB March 2007             Council/Secretariat        Y1          PR
29. Review quality of Presidential
Luncheon and Annual Conference         Council/DMS                Y1-2        PR
30. ABWA Liaison and
international relations                Council                    Y1-2        EXCOM
31. Improve ICT capacity at
Secretariat                            Council/Secretariat        Y1-2        EXCOM
32. Implement Accountancy
School Complex                         ET                         Y1-2        EXCOM



NOTE:

1.      Annual plan of action with deliverables to be developed from above:

        (i)     Chairpersons of Committee
        (ii)    Chief Executive Officer
        (iii)   Each of the three Directors


2.      ACRONYMS

        EXCOM          =      Executive Committee
        PSE            =      Professional Standards and Ethics Committee
        TR             =      Technical and Research Committee
        BC             =      Building Committee
        MS             =      Members Services Committee
        AD             =      Admissions Committee
        PPR            =      Publications and Public Relations Committee




                                                 32