AnnuAl RepoRt - BICA annual report 2015.pdf · HISTORICAL PERSPECTIVE ... commitment in mentoring and coaching the students. The students’ records on ... ACCOUNTANTS (IFAC) As a

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Botswana Institute of Chartered Accountants

Tel: +267 3972992Fax: +267 3972982Email: [email protected]: www.bica.org.bw

AnnuAl RepoRt

Botswana InstItute of Chartered aCCountants

@bicabw Botswana Institute of Chartered Accountants

Vision

Values

Mission

BICA VISIon, MISSIon & CoRe VAlueS

BOTSWANA INSTITUTE OF CHARTERED ACCOUNTANTS

To be the leading accountancy professional body with an internationally recognized professional accountancy qualifi cation

To protect public interest through:

• Promoting the accountancy profession

• Facilitating quality professional accountancy services through the monitoring and regulation of professional accountants

• Developing professional accountants

• Integrity

• Excellence

• Independence

• Transparency and Accountability

A N N U A L R E P O R T

2 0 1 5

Corporate Profi le 2

President’s Report 3

BICA Council 6

BICA Secretariat 7

Reports from Committees :

Membership and Examinations 8

Training & Professional Development 12

Technical 14

Tax 15

Finance & Administrative 17

Public Sector 21

Northern 23

Annual Financial Statements 25

CONTENTS

Annual Report – 2015 | 1

2 | BICA Annual Report – 2015

BOTSWANA INSTITUTE OF CHARTERED ACCOUNTANTS PROFILE

ABOUT US

INCORPORATION AND NATURE OF BUSINESSBotswana Institute of Chartered Accountants (the Institute) is a professional body of accountants domiciled in the Republic of Botswana. The Institute was incorporated in Botswana, in terms of the Accountants Act 2010. The role of the Institute is to represent its members’ interests, develop the accounting profession, protect the public interest, and ensure observance of the highest professional and ethical standards by its members and to carry out any other functions expected of a professional accountancy and membership body.

HISTORICAL PERSPECTIVEWith the growth of the Botswana economy in the 80’s it became necessary for a more formal local structure to regulate the affairs of accountants in Botswana. The Accountants Act was passed on 24 October 1988 the objective of which was to provide for the regulation of accountants and auditors in Botswana. The Botswana Institute of Accountants was established with effect from 2 July 1990 following the proclamation of the Act.

The Accountants Act of 1988 was repealed on 2 August 2010 by an Act of Parliament of 2010 the objective of which was, among other things, to change the name of the Institute from the Botswana Institute of Accountants to the Botswana Institute of Chartered Accountants (BICA) and to establish the Botswana Professional Accountancy Qualification. The Accountants Act of 2010 came into effect on 1 April 2011 following the issuing of Statutory Instrument No. 21 of 2011.

VISION

To be the leading accountancy professional body with an internationally recognized professional accountancy qualification.

MISSION

To protect public interest through:• Promoting the accountancy profession• Facilitating quality professional accountancy services

through the monitoring and regulation of professional Accountants


BICA CORE VALUES

• Integrity • Accountability & transparency• Excellence • Independence

1. OUR SERVICES a) Establishing Botswana professional accountancy

qualificationb) Registration of accountants in all branches of accountingc) Promoting high quality accounting, auditing and financial

reporting standards and practicesd) Supervising the accounting profession in the public

intereste) Promoting high standards of professional ethics and

business standardsf) Enhancing quality services offered by professional

accountantsg) Protecting the public and ensuring the highest standards

of professional accounting servicesh) Contributing to the international developments of

accounting and auditing standardsi) Provision of administrative services to ACCA Joint

Scheme, AAT and CIS.

2. We have accredited the following tuition providers for the BICA Qualification;• Botswana Accountancy College• Botho University• Ba Isago• Arthur Portland• Imperial School of Business and Science

3. Our Membership classes are as follows;• Accounting Technician (Acc Tech)• Associate Chartered Accountant (ACA)• Associate Certified Professional Accountant

(ACPA)• Fellow Chartered Accountant (FCA)• Fellow Certified Professional Accountant (FCPA)

4. Services offered by BICA members• Accountancy• Audit and assurance• Management accounting• Public sector accounting• Internal audit• Taxation• Management consulting• Financial management

It is a legal requirement for all individuals providing accounting and/or related services to register with BICA

For more information visit BICA at:Plot 50374, Block 3 Fairgrounds Financial Centre,

call 397 2992 or email: [email protected]

@bicabw


BICA Annual Report – 2015 | 3

THE REPORTOF THE PRESIDENT

Frederik C. Els

It is my honour and privilege to present on behalf of Council the Annual Report of the Botswana Institute of Chartered Accountants for the year ended 31 December 2015.

BICA’S FIRST GRADUATE

One of our strategic objectives is to increase the number of Professional Accountants to meet the demands of Botswana’s economy and on that note, I am proud to announce that the Botswana Chartered Accountancy Qualifi cation now has its fi rst graduate Ms Whitney Kalaote. The seed that was planted in 2011 has indeed begun to bear fruit and the results are visible for all to see. We sincerely believe that this breakthrough will now make it easier to sell the BICA Qualifi cation.

BICA QUALIFICATION

The BICA students continue to make steady progress on the qualifi cation. A number of students have progressed to the professional level. We have also seen an increase in the number of students who sat for the Advanced level examinations in 2015; this means that we are likely to have more BICA qualifi ed accountants graduating in 2016.

It is quite pleasing to note that all the fi ve BICA Qualifi cation tuition providers have been reaccredited to continue offering the qualifi cation. This in itself shows that they continue to maintain high standards in delivering this qualifi cation. To further strengthen the high standards that have to be maintained in delivering this qualifi cation, the Institute has signed service level agreements with all the tuition providers in this regard.

Our Approved Training Employers (ATEs) also continue to show a lot of commitment in mentoring and coaching the students. The students’ records on practical work experience have been impressive thus far.

The Institute of Chartered Accountants of England and Wales (ICAEW) who are our twinning partners continued to give us the much needed support as evidenced by the July 2015 visit by their President Mr Andrew Ratcliffe. We had meetings where he shared a lot of insights on the initiatives to undertake in order to improve the qualifi cation. He concluded his visit by having a motivational talk with the students.

Honourable MinisterKenneth O. MatamboMinister of Finance and Development Planning


RECIPROCITY AGREEMENT WITH ICAEW

I am delighted to report that the much awaited Reciprocal Membership Agreement (RMA) with ICAEW was signed in November 2015. This means that once students complete the BICA qualification they are eligible to apply for ICAEW Membership. This could not have come at a better time as it coincides with the Institute producing its first ever graduate, I would like to confirm that the signing of this RMA means that the BICA Qualification is indeed an internationally recognised qualification.

BICA-STRATEGY 2013-2016

In the last report we indicated that much as the Institute was making concerted efforts to implement the strategy it became apparent that issues of structure had to be addressed first for both the Institute and its members. A relevant structure which we believe will be able to deliver the strategy has now been agreed upon and it will be implemented by the end of the first quarter in 2016. The current strategy comes to an end in 2016 and Council will come up with a strategy which will take the Institute forward beyond 2016.

MORATORIUM FOR ALL ACCOUNTANTS TO REGISTER WITH BICA

After a host of public education activities dating as far back as 2011 regarding the mandatory registration of all accountants with BICA as per the Accountants Act 2010, the Institute has now issued a moratorium through the media giving all concerned a deadline to have registered by end of January 2016. We continue to receive a steady flow of applications and enquiries in this regard. The Institute has also communicated to employers to assist with compliance to the Act by hiring only BICA registered members, and the response has been positive. This will take us a long way in protecting the interests of both the Public and our Members.

BENCHMARKING VISITS TO BICA

During this reporting period BICA was honoured to host delegates from the

Lesotho Institute of Accountants and the Engineers Registration Board of Botswana who came on different dates to benchmark with the Institute. Both parties gave positive feedback on what they learnt from BICA. This also gave BICA staff confidence that they are moving in the right direction.

DINNER DANCE

Post the annual general meeting held on the 23rd April 2015, BICA hosted its annual dinner dance on the 24th April 2015 at the Gaborone International Convention Centre. There were over 400 attendees at this event and this is a confirmation to us that the BICA Dinner Dance is an important event for both the Institute and its members. The guest speaker was the Auditor General of the Republic of Botswana Ms Pulane Letebele. She educated the audience very well on the topic of governance.

STAKEHOLDERS’ COCKTAIL

The Institute successfully hosted the stakeholders’ cocktail in Gaborone and Francistown on the 9th and 11th June 2015 respectively. These were occasions for stakeholders to be formally introduced to the incoming President and for the President to introduce the new Council as well as update stakeholders on the Institute’s operations and outline plans for the duration of his tenure. This platform also gave stakeholders an opportunity to give feedback to the Institute on its operations and where improvements could be made.

PAN AFRICAN FEDERATION OF ACCOUNTANTS (PAFA)

The Institute continued to play an active role in the affairs of the Pan African Federation of Accountants. The Institute has complied with all the PAFA requirements for 2015 and remains a member in good standing.

INTERNATIONAL FEDERATION OF ACCOUNTANTS (IFAC)

As a full member of IFAC, the Institute continues to play an active role in the affairs of IFAC. The Chief Executive Officer and myself attended IFAC meetings hosted by the Institute of

Singapore Chartered Accountants from 10th – 13th November 2015. We participated in meetings and exercised BICA’s voting rights on key decisions taken to shape the Accounting Profession the world over. The Institute has complied with all the IFAC requirements for 2015 and remains a member in good standing.

END OF MY TENURE AS BICA PRESIDENT

Having served in Council for many years, I have now reached the limit of the number of terms that I can serve and I shall be stepping down. It has been a worthy experience giving back to this noble profession over the years, and it is only fair that I pass on the baton. I sincerely thank everybody who has supported me in this role and other roles over the years. I pledge my support to my successor at all times and wish him/her the best of luck in leading the Institute into the next chapter.

CONCLUSION

On behalf of BICA Council, I wish to note and acknowledge the Government of Botswana and the Ministry of Finance and Development Planning through the office of the Accountant General for their efforts in supporting the Institute for the purpose of ensuring excellence, transparency, accountability and integrity in the accounting profession in the country and by extension in the region and on the international front. Last but critically important, I thank our other key stakeholders like Auditor General, World Bank, ICAEW, AAT, ACCA, BICA Qualification Tuition Providers, Approved Training Employers, Government Departments, BICA Committee Members and BICA Staff for their support in the implementation of BICA’s various initiatives.

Frederik C. ElsBICA PRESIDENT


ATTENDANCE AND MEETINGS OF COUNCIL AND OTHER COMMITTEES FROM JANUARY 2015 TO DECEMBER 2015

KEY NOTE:

T & PD = Training and Professional Development CommitteePIC = Project Implementation CommitteeM & E = Membership and Examinations CommitteeFAC = Finance and Administrative Committee* = Members only joined Council in April 2015

NAMES Council T & PD PIC Practice

Review Tax Technical Public Sector M & E Northern FAC

Frederik C. Els 7/8 - 3/3 - 2/3 1/3 - - - -

Gosego Motsamai * 4/5 3/3 2/3 - - - 4/5 - - -

Peo Pillar * 3/5 - - - - - - - - 5/6

Rudi Binedell 8/8 - - - - 2/3 - - - -

Dr Mpho Isaiah 6/8 - - - - - - - - -

Tshegofatso B Modise 6/8 - - - - - - - - -

Mpho Masuge * 4/5 - - - - - - 7/7 - -

Michel Katombe * 4/5 - - - - - - - 5/6 -

Conductor P. Masena 4/8 - - - - - - - - -

Moshe C. Zila Libengo * 3/5 - - - - - - 6/7 - -

Boineelo Peter 2/8 - - - - - - - - -

Verily Molatedi 8/8 3/3 2/3 1/1 2/3 2/3 7/7 - - 6/6


BICA COUNCIL

Standing: Conductor Masena, Michel Katombe, Rudi Binedell, Mpho Masuge, Dr Mpho Isaiah, Tshegofatso Modise, Moshe C. Zila LibengoSeated: Gosego Motsamai, Verily Molatedi, Frederik C. Els, Boineelo PeterNot in Picture: Peo Pillar


BICA SECRETARIAT

FRANCISTOWN SATELLITE OFFICE

Back Row Standing : Joseph Gontse, Mogakolodi Sane, Pule L. Mogale, Mokeresete KgosimoreMiddle Row Standing: Ookeditse Khachana, Priscillah Setimela, Gofaone Marena, Kelebogile Kagiso, Boemo Gaolathe,

Tumelo Tsheole, Othusitse Gatang, Veronica Mogapi, Oupa Gaofi seSeated: Letsalo Morapedi, Masego Lesole, Thapelo Selelo, Verily Molatedi, Khumoetsile P. Modisa, Nametso Laletsang,

Regina Ramanteba, Keneilwe RathediNot in Picture: Tshepang Monare, Othusitse Siele, Orebeile Seboka

Thato Thipe Merapelo Ramarula Tshegofatso Nkepu


MEMBERSHIP AND EXAMINATIONS COMMITTEE

The role of the Membership and Examinations Committee is to ensure that applications for membership satisfy requirements as prescribed in the BICA Rules such as approved training, examinations and suitability of membership requirements.

Since BICA is a professional accountancy body, the committee is responsible for setting standards for membership that meet world class standards and contribute to the development of the accounting profession which in turn would impact on the economic development of the country.

Since its inception, the mandate of the Committee has been to oversee compliance with the provisions of the Accountants Act relating to registration of accountants by recommending applicants to the BICA Council for registration to different categories of membership.

MEMBERSHIP DRIVE

The Institute continues to promote membership of BICA and strives to provide its members with a wide range of resources and benefits. These are to enable them to stay at the top of the profession and to continue to attract high calibre individuals who can develop and maintain high standards of technical and professional expertise and services desired in Botswana.The Institute embarked aggressively on promotional activities such as carrying out the Southern Awareness Campaigns covering places such as Goodhope, Kanye, Jwaneng, Tsabong, Gantsi, and also carrying out presentations to various organisations encouraging non registered accountants to register in line with the requirements of the Accountants Act 2010.

BICA also strives very hard to improve services to its members and I am happy to report that the Institute has introduced online membership service through its membership portal (My BICA) and all members are encouraged to make full use of this new e-business service.

Standing: Mohammed I. S. Nasoordeen, Koketso Letsididi, Maemo Mesotlo, Moshe Libengo, Othusitse Siele, Girish Ramakrishna, Thata T. N. Monyepele, Peter Kirsten MotlhammeSeated: Ntsebo Mothelesi, Mpho Masuge, Khumoetsile P. Modisa, Nametso LaletsangNot in Picture: Krishanthan Subramaniam, Jose Joseph, Mpho Molefhi


The Institute has increased BICA membership lifestyle benefits in addition to a discounted rate offered by the Dynamic Insurance brokers by joining partnership with organisations such as The World of Golf which offers a corporate rate to BICA members, 20% discount on car hire with Avis Botswana, free internet installation and discounted rate on internet services with Broadband Botswana Internet (BBI) and a discounted rate at Super Gym. Members’ valuable feedback has helped and continues to help us to continually improve our services and benefits.

RADIO BOTSWANA INTERVIEW

BICA participated in the Radio Botswana Liveline Program on the 12th October 2015, the purpose of which was to create public awareness on BICA and the Qualification. The audience showed a lot of interest in BICA. Feedback was again given on branding issues that BICA is not well known and yet it was a key organisation in protecting public interest.The other feedback that came through was that members were not aware of the value that they should be getting from being BICA members. It is against such a background that we are working on a value proposition for members so that they can be clear on what to expect from BICA. The value proposition is expected to be communicated to members in 2016.

MEMBERSHIP GROWTH

The Institute’s membership continued to grow during the year 2015 and closed the year at 2085 members compared to 1931 members at the end of 2014. Out of the 2085 members, there was a notable increase in the Accounting Technician category which was 973 compared to 859 members in 2014.

The committee believes that the growth in membership is due to the membership drives and marketing initiatives carried out during the year and believes that this trend will continue into the foreseeable future.Associate members were 639 at the end of 2015 compared to 777 members in 2014. It is worth noting that this decrease in the number of the Associate members is mostly attributed to the automatic upgrade of Associate members who have been BICA members in good standing for the past five (5) years.The details of membership are set out in more detail in the table and chart below:

MEMBERSHIP CLASS DEC. 2010 DEC. 2011 DEC. 2012 DEC. 2013 DEC. 2014 DEC. 2015

Accounting Technicians 439 565 675 819 859 973

Associate (ACA) 416 371 345 313 145

Associates (ACPA) 590 248 312 388 464 494

Fellow (FCA) 176 189 192 204 356

Fellows (FCPA) 218 69 82 91 91 117

Total 1 247 1 474 1 629 1 835 1931 2085


CITIZEN MEMBERSHIP COMPOSITION

Out of 2085 members, citizen membership stood at 1211 in 2015 compared to 1033 in 2014. Out of the 1211 members only 422 are professional citizen accountants which shows a slight increase compared to 382 in 2014. The total Accounting Technician citizen members stood at 789 in 2015. This is a notable increase of 138 members from 651 in 2014.

More details on citizen membership are given in the table and chart below:

MEMBERSHIP CATEGORY CITIZEN NON - CITIZEN TOTAL MEMBERSHIP

Dec 2014 Dec 2015 Dec 2014 Dec 2015 Dec 2014 Dec 2015

Fellow 97 159 198 314 295 473

Associate 285 263 492 376 777 639

TOTAL NO OF PROFESSIONAL ACCOUNTANTS

382 422 690 690 1072 1112

ACCTECH 651 789 208 184 859 973

TOTAL 1033 1211 898 874 1931 2085

CERTIFIED AUDITORS

The number of Certified Auditors as at end of 31st December 2015 was 59. BICA registered 9 new Certified Auditor during the year under review.

The table below gives more details on the Certified Auditors

As at December 2014

Admissions during 2015

As at December 2015 Citizen Non-Citizen

Associate 14 2 13 1 12

Fellow 36 7 46 6 40

Total 50 9 59 7 52

0

100

200

300

400

500

600

700

800

900

1000

2010 2011 2012

Accounting Technician

Associate (ACA)

Associate (ACPA)

Fellow (ACPA)

Fellow (ACA)

2013 2014 2015


MEMBER FIRMS

Under Section 33(1) of the Accountants Act 2010 provides that every firm that provides or intends to provide professional accounting services shall apply for registration with the Institute. Professional Accounting Services are defined as services provided by a professional accountant requiring accountancy or related skills and relating to auditing, taxation, management consulting and financial management. The Institute continues to remind members of the public and employer organisations that they are required to only use registered member firms of the Botswana Institute of Chartered Accountants as these are the only firms that are legally permitted to offer such services. The Institute will be able to take action against their membership for any improper conduct.

The Institute had registered 35 Audit and 137 Non–Audit Member Firms as at 31st December 2015.

MEMBER FIRMS NUMBER OF MEMBER FIRMS

Firms with Certified Auditors 35

Firms without Certified Auditors 137

Totals 172

CONCLUSION

I take this opportunity to thank members of the committee, subcommittee and the Secretariat who continue to demonstrate commitment in seeing that the committee successfully carries out its mandate. I also wish to thank the Council for their guidance during this period.

Moshe C.Z. LibengoCHAIRMAN, MEMBERSHIP & EXAMINATIONS


TRAINING AND PROFESSIONAL DEVELOPMENT COMMITTEE

The role of Training and Professional Development Committee is to advance the accounting profession in Botswana by strengthening the profession to meet international standards and contribute to the development of Botswana economy by establishing and promoting adherence to high quality professional standards.

The Committee continued to ensure that BICA members continue to develop their professional competencies in line with pronouncements issued by the International Accounting Education Standards Board of the International Federation of Accountants (IFAC).

The Committee also continued to monitor and review performance of the BICA Qualification on whether students’ performance is improving in line with the various initiatives put in place, including attracting the right calibre of students, ensuring that tuition providers deliver high quality tuition and that Approved Training Employers (ATEs) provide practical work experience of high standards.

CONTINUING PROFESSIONAL DEVELOPMENT (CPD)

CPD EVENTS

The Institute’s Continuing Professional Development (CPD) events aim to ensure that learning and development remain relevant to individual members at all stages of their careers. BICA continued to offer a wide spectrum of CPD events to its members to ensure that members were up to date with developments in the profession. The key highlights under CPD in the year under review were:

t Paid CPD events increased from 20 in 2014 to 23 in 2015 and free CPD’s were also piloted.

t The Committee recommended to Council and the Council approved that people who register with the Institute for the first time as Accounting Technicians and are not members of any other professional Institute would be exempted from CPD in their first year of registration.

t The CPD return form was also amended to include declaration on compliance with professional ethics requirements.

BICA hosted 23 paid CPD events during the year compared to 20 events held in 2014. Seven of the events were held in Francistown, one in Palapye and the remainder were held in Gaborone. The institute further successfully hosted the first ever free CPDs in Gaborone, Maun and Francistown. The free CPD’s came about as a result of a decision by Council to give back to its Members 10% from any surplus made from CPD’s. Through this dispensation the Institute seeks to encourage and improve compliance of members.

CPD MONITORING AND COMPLIANCE

The Institute continued to monitor CPD compliance. 1618 members out of 1969 submitted their 2014 CPD returns, representing 82% of members who complied with CPD returns. 222 members were sampled for review where 152 CPD evidence was received, representing 68.5% of evidence submitted. Furthermore the statistics showed that only 99 members from 152 submitted satisfactory evidence depicting 65% compliance.

Standing: Bernard Edmund Pereira, Saad S. Sheikh, Shabani Ndzinge, Aswin Vaidyanathan, Ronald T. Mahlaka, Ian Howarth, Othusitse Siele

Seated: Vikash Ponangi, Gosego Motsamai, Lerato O. Tibone, Rebecca M. MgadlaNot in Picture: Jonah Pongaponga, Kudzai Chuma, Eugene Mwamba, Mbaakanyi Lenyatso, Ofentse Mabote,

Tshepang Monare, Mmatlala Dube, Verily Molatedi, Nametso Laletsang


The Institute continued to disseminate information to its members on the importance of compliance during the seminars. In addition, a document on CPD compliance was issued twice during the year to all the members in order to improve compliance.

BICA QUALIFICATION

BICA QUALIFICATION GROWTH

The BICA qualification student membership has grown since the qualification started in 2011. The Institute has to date registered 641 students of which 512 are currently active. During the year 2015, the Ministry of Education and Skills Development reduced the quota of students it sponsored for BICA from 200 to 65. The reduction was based mainly on the financial constraints that the Department of Tertiary Education Financing (DTEF) is experiencing. An encouraging number of 231 students have progressed from the certificate level to professional level. A total of 19 students sat for the Advanced level examinations this year and this is a good sign that we will get more graduates in 2016. There are 6 students who are left with only the Case Study to complete their studies and their records on Practical Work Experience are impressive. The Institute expects more students to progress to the Advanced level in 2016.

BICA QUALIFICATION FIRST GRADUATE

After a long wait with bated breath, BICA finally produced its first ever BICA qualification graduate, Ms Whitney Kalaote. This was a huge milestone for BICA, the Accountancy Profession and the Government of Botswana. The Institute organised an event to publicise this great milestone and this event was attended by different stakeholders and the media fraternity.

2015 BICA QUALIFICATION RESULTS

In 2015, 391 examination attempts were made and 149 students passed the examinations from different modules.

The overall pass rate from 391 attempts which were made was 149 (38%).

Despite the fact that a number of students are not progressing in the examinations as expected, there is a steady progress of students through different levels of the qualification.

BICA QUALIFICATION STAKEHOLDER CONSULTATIVE MEETINGS

A number of consultative meetings were held between the Authorised Training Employers (ATEs), Tuition Providers, the Students and the Institute which resulted in the introduction of a standardised block release mode of delivery (100hours per module). This initiative is aimed at enabling the Government sponsored students to attain practical work experience with the ATEs. The consultative meetings also resolved to increase the students’ allowances from the current monthly minimum paid out by the ATEs.

This was a good achievement for the BICA qualification and the Institute is grateful for the support and cooperation shown by all the stakeholders involved.

BICA SUPPORT FOR STUDENTS

Additional efforts are being put in place to develop students’ professional and ethical skills. The Institute continuously organised motivational sessions for the BICA students. The first one was addressed by a graduate from the South African Institute of Chartered Accountants who presented the necessary techniques towards studying for a Chartered Accountancy (CA) programme. Another session held was addressed by the Institute of Chartered Accountants in England and Wales (ICAEW) President who shared his experiences with the students when he was doing the CA programme. The students also had an opportunity to be inducted on interview skills equipping them with techniques to pass interviews.

The Institute is in the process of finalising the various categories of awards that will be introduced in 2016. The purpose of these awards are to: honour graduates,

honour students who have high academic goals through hard work and dedication to learning; encourage and motivate BICA students to excel; make the qualification enjoyable to all those who are involved, motivate tuition providers, ATEs; and to manage perceptions of students and the public about the BICA qualification. The Awards ceremony is expected to be held on 07th October 2016.

RE-ACCREDITATION PROCESS

The Institute re-accredited the five BICA tuition Providers that are offering the BICA qualification and entered into new Service Level Agreements (SLAs) with them. The SLAs are expected to improve the existing relationships and communication between the Institute and accredited Tuition Providers on matters affecting the qualification and serve as a monitoring tool on the quality of service delivered. It also ensures that appropriate measures to improve service quality are implemented and that all parties involved with the BICA qualification understand the level of service required and are held accountable.

ACKNOWLEDGEMENTS

Let me take this opportunity to thank all members of the Training and Professional Development Committee, the BICA Council and the BICA Secretariat for their continued dedication and support.

I have no doubt in my mind that 2016 is going to see the Institute achieve even more milestones and will produce more BICA graduates. This is however dependent on all stakeholders playing their respective roles.

Gosego MotsamaiCHAIRPERSON


TECHNICAL COMMITTEE

The role of the Technical Committee is to oversee the Technical aspects of the profession in Botswana, particularly in the areas of International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISAs).As was reported in 2014, the work of the Committee continued to be hampered by lack of a Technical Director. It has proven that it is not easy to get these skills in the market. The Institute however continues to liaise with PAFA and other organisations to assist with recommendations of individuals who can assist.

The following activities were carried out during 2015.

BOTSWANA GAAP TEMPLATE FINANCIAL STATEMENTS

Following on from the launch of the GAAP for Entities not required to comply with IFRS in 2013, the Institute went further to develop a template for the financial statements. These have been shared with the relevant entities.

BICA/BAOA JOINT OVERHAUL OF THE ACCOUNTANTS ACT 2010 AND FINANCIAL REPORTING ACT 2010

A joint Committee between BAOA and BICA was formed to identify overlaps between the two Acts with a view of making recommendations for amendments to Government.

Comments have now been received and they will be forwarded to Government in 2016.

COMMENTS ON THE BAOA RULES

BAOA drafted their rules and in the true spirit of partnership, requested that BICA provide comments. The Institute fully participated in this process, and we believe that these rules (together with the BICA Rules) will go a long way in regulating the profession in Botswana.

INDEPENDENT ASSURANCE REPORT FORMAT

BICA and the Law Society of Botswana have now agreed on the format of the Independent Assurance Report in accordance with the International Standard on Assurance

Engagements (ASAE)-3000. This has been forwarded to all Practicing Members for implementation.

DISSEMINATION OF INFORMATION

The Committee continues its role of dissemination of information and implementation of guidelines through articles published in the BICA Newsletter and through circulars to Members.

ACKNOWLEDGEMENTS

I wish to thank Members of the BICA Technical Committee for their dedication and effort despite the capacity challenges that the Institute is facing in the Technical area. We hope that in 2016 we will be able to find the much needed Technical Resource and continue to capacitate our members.I further wish to thank Council for their support and the Secretariat for their efforts in ensuring that the Committee keeps moving forward.

Rudi BinedellCHAIRPERSON

Standing: Rudi Binedell, Mohammed Osman, Benedicta Abosi, Dr. J. Josiah, Shashi K. Velambath, Sheyan Edirisinghe, Verily Molatedi

Not in Picture: Cecilia Ramatlapeng, Prosenjit Gupta, Setlhalefi Motshegwa, Susanne Swaniker-Tetty, Thomas Chitambo


TAX COMMITTEE

The Tax Committee provides a forum for effective communication between the Botswana Institute of Chartered Accountants (BICA) and Botswana Unified Revenue Services (BURS) to consult and exchange ideas on matters of tax administration and policy improvements.

2015 was a challenging year as BICA and BURS only met once due to the strike at BURS.

Having said that, the developments in 2015 were as follows-:

DUE DATES FALLING ON PUBLIC HOLIDAYS OR WEEKENDS

In my report in 2014, I indicated that BURS was looking into this matter. BURS has now finalized their work and agrees with BICA that interest should not be charged where due dates fall on public holidays or weekends. Their system has been adjusted accordingly to cater for this.

ADMINISTRATIVE PROVISIONS FOR ASSESSMENTS BEYOND 8 YEARS

BICA recommended that BURS should make administrative provisions for the issue of assessments for periods beyond the 8 years prescribed in the Act to enable refund of incorrectly/ inadvertently collected tax. BURS has now clarified that Section 84 of the Income Tax Act provides that the Commissioner General may make an assessment for any year within a four year period after the end of the Tax year. The Commissioner General may also make an assessment after the expiry of the initial four years if he is satisfied that an amount that should have been subjected to tax has not been assessed as a result of e.g. misrepresentation or failure to disclose material facts.

BURS noted that this provision is satisfactory for purposes of protecting the revenue against cases where the fiscus may suffer as a result of wrong information or fraud.

DIVISIONAL GUIDANCE NOTES

BICA and BURS continue to work together on the development and revision of some of BURS Divisional Guidance Notes (DGNs). The DGN on Management or Consulting fees has been developed and now awaits finalization by the two parties.

OTHER MATTERS

During the meetings held between BICA and BURS, the following matters of interest were agreed upon-:

t That BURS has started accepting authenticated copies of ITW9s when claiming withholding tax credits.

t That BURS will keep on engaging Botswana Post as many tax payers are still not receiving their tax returns.

Standing: Siva Prasad, Rajesh Narasimhan, Craig Cranville, Watson Masikati, Nigel Dixon-Warren, Ramnath Kudua, Gladys Makachiwa

Seated: Verily Molatedi, Terry Brick, Butler Phirie, Elizabeth ChikeremaNot in Picture: Prof. Bonu Swami, Frederik C. Els, Narayanaswamy Narasimhan, Virendra Kumar Verma


ACKNOWLEDGEMENTS

BICA wishes to take this opportunity to thank the BURS team through the leadership of Mr. K. Morris for the value that they added to the BICA/BURS Tax Consultative Committee especially during this difficult period when they also had to deal with the strike.

I thank Members of the Tax Committee for their dedication to the affairs of the Committee. I also thank Council for their support. Last but not least I thank the Secretariat for the coordination role that they play in ensuring that the Committee is able to run its affairs in an effective and efficient manner.

Frederik C. Els CHAIRPERSON


THE FINANCE AND ADMINISTRATIVE COMMITTEE

INTRODUCTION

This Committee is responsible for the Finance and Administration functions. The finance function covers the area of financial reporting including financial statements, management accounts, budgets and audit. The administration part consists of Public Relations, Human Resources, Information Technology and any other related functions.

FINANCE

The main duties of the Committee under the Finance function are:t To review and recommend the

annual budget to Council;tTo review and monitor the

monthly management accounts, including comparison of actual financial performance to budget, monitoring cash flows, etc.;

tAnalyzing student and member fee structures and making recommendations on these to Council;

tReviewing and recommending salary increases for staff to Council;

tAssisting the Secretariat with selection and application of appropriate accounting policies;

t Advising and guiding the Secretariat on aspects of financial management, including maximizing revenue streams, optimum cost control and investment decisions for surplus cash resources;

tOverseeing the preparation of year-end financial statements for audit and the preparation of the Annual Report; and

tAssisting in tender procedures where independent oversight is required by BICA’s policies and procedures.

The Institute returned a surplus of P 1, 392, 871, a decline of 59% from the financial year ended 2014. The decline in the surplus is caused by several projects which were undertaken and completed within the financial year.

A generator for the Gaborone office was purchased from BH through a tender. The purpose for the generator was to have a power backup as the country is still experiencing a shortage of power supply.

The Institute also procured an offsite backup server which would be housed in a different location as has been identified by the Institute.

The BICA structure and performance management system was kick started in the last quarter of the financial year 2015 increasing the cost of consultancy fees by 39% as two tenders were awarded to People Connections and Bothopele consultants.

The Institute, through resignation, lost an employee in the finance department which led to the engagement of consultants to further train the finance personnel for a period of 6 months. This also contributed to the cost increase of the consultancy fees.

Standing: Oupa Gaofise, Mogakolodi Sane, Anjiru George Kamkwala, Madhu Kalathil Menon, Boemo Gaolathe, Regina Ramanteba, Ookeditse Khachana, Keneilwe Rathedi, Masego Lesole, Vikash Ponangi, Mohammed N. Rizvi

Seated: Nametso Laletsang, Peo Pillar, Verily Molatedi, Ranjitha DineshNot in Picture: Batabe Mokgautsi, Kgomotso Kereng, Othusitse Gatang, Allan Munthali, Ivy D. Chaza, Rangunathan Duraisami


The Institute has experienced a decline in the revenue earned from services due to a decrease in income generated from Seminars and workshops by 24% as well as income from BICA admin fees, subscriptions and sale of study books by 13% year on year.

As the Institute’s vision statement is to be the leading professional body with an internationally recognized professional accountancy qualification as well as its mission being to protect the public interest, we saw an increase of 48% under marketing and branding necessitated by the awareness campaigns, participation at career fairs and advertising of the BICA qualification throughout the year under review.

With the drive to implement the Accountants’ Act 2010 still continuing, the institute experienced an increase of 16% in the membership income.

Though the Institute has other sources of income, we express our appreciation for the continued financial support from the Government of Botswana. The P6.1 million annual subvention is a clear evidence of the high regard our Government has for our Institute and recognition of the important role our profession plays in the economy of Botswana.

Despite the decline in the Institute’s surplus, it managed to maintain a positive cash flow with the assistance of the Finance and Administrative Committee.

INFORMATION TECHNOLOGY

The information technology subcommittee is responsible for ensuring that the Information Technology Department of the Institute implements services that afford BICA information Technology users an opportunity to work effectively and efficiently. It is the responsibility of the IT Department to store, protect, process, transmit, and later retrieve information as necessary. As Information Technology is the driving force of every organization in the modern business world, the Institute embraced new technologies and used them to deliver business products and services economically, efficiently and effectively.

The IT subcommittee is responsible for strategic planning, oversight and direction of the IT infrastructure, resources and services.

The Department provides critical technology support to all the two BICA offices, Francistown and Gaborone, focusing on administrative systems, information management, networking, telecommunication, data centers, information security and privacy, server and storage infrastructure, customer services and technology business continuity.

The Department further partners with other stakeholders to enable service delivery, innovation and discovery.

IT STRATEGY

The Institute has embarked on the development of the IT strategy for the next three (3) years. The development of this three year plan is still at an infant stage but the ground work has already started. The initial process of the development of the strategy was to benchmark with other institutions in the region.

BUSINESS CONTINUITY AND DISASTER RECOVERY

With Business Continuity and disaster recovery being paramount to BICA operations, the Institute had to ensure that there was sufficient backup in case of emergencies and thus introduced offsite backup solution. An agreement was reached with Botswana Accountancy Oversight Authority to host the BICA offsite backup servers.

POWER BACKUP

In order to carry out our mandate of provision excellent services and to reduce the debilitating impact of power interruption, over and above the uninterrupted power supply (UPS), the Institute installed a Diesel power backup generator, and also signed a fueling and maintenance agreement. BICA can now proudly confirm that power cuts are a thing of the past.

WIRELESS CONNECTIONS

2015 saw the introduction of Guest WIFI connections meant for use by the BICA Council, committee members and other stakeholders. The bandwidth was also upgraded from 2MB WIFI to 2MB dedicated Metro connection.

STAFF TRAINING AND CUSTOMER SERVICES

We found it very necessary for IT users to be trained in all aspects of Information Technology and throughout the year we were engaged in the training of BICA staff on Chartered Accountancy Management System database, the Membership Management database, data security and the newly introduced Membership Management Portal. These training exercises were undertaken to bring staff members to the same level of understanding of the systems used at BICA. This trainings are scheduled to continue in the coming year.

MEMBERSHIP MANAGEMENT PORTAL (MYBICA)

BICA is pleased to announce that December 2015 saw the introduction of online membership services through the Membership Portal (MyBICA). MyBICA was one of our latest technological developments which aims to give members a platform to access their membership details in the Institute’s database and be able to:

t Communicate with the Institute online. ( Service requests)

t Amend their personal details from the comfort of their offices.

t Submit their CPD return and view their CPD statements

t Pay their annual subscriptions and view their outstanding invoices

t Register for CPD events and pay for them online

t View calendar of events from the Institute.

HUMAN RESOURCES

During the 2015 financial year, the Institute appointed a new Director, Training and Professional Development, Nametso Laletsang. One of the key positions for our Institute, that of Director: Technical still remains vacant, mainly through a combination of lack of skilled candidates and the remuneration package which the Institute cannot afford for such an expert.

The Institute also welcomed another new staff member Thato Thipe who is the Administration Supervisor in the Francistown Satellite Office.


The Institute has always been blessed with staff continuity and relatively low levels of staff turnover. However, 2015 was a different and a challenging year as there were three resignations from the Institute.

In December 2015 Khumoetsile Pinkie Modisa and Letsalo Morapedi were recognized by BICA for long service with the Institute, attaining ten and five years, respectively.

The Institute prides itself in providing a work experience which is conductive to professional and personal development. In 2015, the soft skills training that various BICA staff members participated in included risk management, public relations and communications, support and administration skills, customer service to mention but a few.

The Institute has completed the review of its Performance Management System (PMS) for staff during the year 2015. Training has been provided to all staff on the new PMS and it will effectively be implemented in January 2016.

During 2015, the Institute also engaged an Industrial Relations consultant to implement the new BICA structure and at the time of writing this report, Consultations were ongoing with the staff. It is hoped that this process will end in early 2016.

PUBLIC RELATIONS

The PR sub-committee is responsible for managing and enhancing the BICA brand and reputation in the public’s eye, ensuring that brand communication for areas of responsibility are consistent with the Institute’s needs. The section also coordinates and manages content and information sharing among stakeholders. In 2015 the sub-committee managed the following:

COMMUNICATION

t BICA BULLETIN

The sub-committee facilitated the production of the BICA Bulletin, the Institute’s newsletter. The sub-committee was responsible for soliciting of articles from members and key stakeholders, editing and ensuring that content conformed to the set standards. With the advent of the BICA Qualification, the newsletter has been improved to include a student section

and is now also distributed to students. The hard copy of the newsletter has now been replaced with an easy-to-read electronic version which is uploaded onto the BICA website as well as being sent as an electronic link and in PDF to members. In 2015, four editions of the Bulletin were produced, one in each quarter.

t WEBSITE

The sub-committee continued to discharge its responsibility over the website. Regular updating of the website was undertaken so that members got reliable and up-to-date information. Efforts are ongoing with the assistance of the IT department to make the website as interactive as possible, with the members’ log-in area already activated. Website updates are now done in-house after the IT department set the groundwork and this will go a long way in avoiding delays experienced with processing updates through the web developers.

t SOCIAL MEDIA

In appreciating innovation to ensure improved communication and stakeholder engagement, 2015 saw BICA launching two social media pages, that is Twitter (@BICABW) and Facebook (Botswana Institute of Chartered Accountants). The social pages have been well received and monthly reports show that BICA is interacting with a number of our stakeholders through such platforms.

t MEDIA RELATIONS

The Committee was responsible for communication with stakeholders through the media. This includes the choice of appropriate media, deciding on content, editing as well as setting appropriate dates to bring out communication pertaining to the Institute and/or the accounting industry.The PR sub-committee facilitated for the press to cover important BICA events such as the Annual General Meeting, the Dinner Dance, the annual AAT Awards, the Stakeholder’s Cocktail in Gaborone and Francistown respectively, outreach projects being the HRDC Fair, the annual Business Botswana Northern Trade Fair in Francistown, and other events that took place during the year. All these events were covered through facilitation by the PR sub-committee.The forms of media that were

commonly used included print media, electronic media being television and radio and communication was largely achieved through articles, advertorials, press releases, advertisements, public notices. 2015 also saw the appearance of BICA personnel on key talk shows both on radio and Botswana Television as a way of further creating awareness about the Institute and its mandate.

t ADVERTISING

The sub-committee ensured that all the BICA events were timeously and strategically advertised to reach the intended audience. Advertising covered the BICA Qualification intake, general notices to the public and any other information that BICA wanted to impart to its target audience.

OUTREACH PROJECTS

BICA participated at the following events as a way of reaching out to its stakeholders;Consumer FairNew Era College Career ExpoBotswana Tertiary Education FairKopong CJSS Career DayBusiness Botswana Northern Trade FairBuilders World Francistown CarnivalGlobal Expo

MARKETING AND COMMUNICATIONS STRATEGY

After going for some time without a marketing strategy and owing to various developments taking place at BICA, the Institute has henceforth through the tendering process decided to invite qualifying agencies to come up with a strategy that will further enhance the BICA brand. It is anticipated that after all processes have been followed, the preferred agency will come on board by the end of February 2016.

Amongst other marketing initiatives, the Institute will in early 2016 conclude the production of a video whose main objective is to create awareness amongst the public about BICA and the Qualification.


SOUTHERN AWARENESS CAMPAIGN

The awareness campaign was successfully held from 21st May 2015 to the 5th June 2015, covering areas such as Lobatse, Good Hope, Molepolole, Kanye, Tsabong, Gantsi, Jwaneng and ended up in Kasane on the 13th June 2015.

The purpose of the awareness campaign was to reach out to members, prospective members and students as well as various stakeholders in the Southern region and to provide an opportunity for information sharing, networking as well as an exchange of ideas on the relationships BICA could build with its members and stakeholders in the region. The events were the first ever outreach efforts by BICA covering such a geographical space, hence it was used by the Institute to disseminate information about BICA services and products, encourage qualifying but unregistered accountants to register, sensitizing employers on the benefits of employing BICA registered accountants and engaging member firms for professional accountancy services.

The workshop presenters were the BICA Director of Training and Professional Development and the Botswana Accountancy Oversight Authority CEO Duncan Majinda who respectively presented on the role and mandate of BICA, the BICA Qualification, and the role of BAOA

SPORTING AND SOCIAL EVENTS

Sporting and social events afforded members an opportunity to network and interact with professional colleagues from other organizations. The events also enabled the Institute to reinforce its relationship with its stakeholders through their sponsorship and coordination of such events. The following events were successfully held in 2015;

EVENT SPONSOR

Netball Office of the Auditor General

Pool Botswana Accountancy College

Golf Deloitte

Soccer Pricewaterhousecoopers

Volleyball BDO

Cricket Grant Thornton

Up Kgale Challenge KPMG

Basketball Ernst & Young

I would like to once more express my gratitude to the BICA Secretariat and Council for the support given to the Committee. My sincere thanks also go to the Committee members for giving so much of their valuable time towards the affairs of the Institute.

Peo PillarCHAIRPERSON


PUBLIC SECTOR COMMITTEE

The mandate of the BICA Public Sector Committee is to influence and empower all stakeholders in the Public Sector Accounting fraternity, namely Accountant General, the Ministry of Finance and Development Planning, Auditor General, Institute of Directors, Internal Audit, Local Government and Professional Bodies such as IPSASB and INTOSAI.

It gives me great pleasure to present my first report as the chairperson of the BICA Public Sector Committee for 2015.

2015 has been a very challenging year for the Public Sector Committee as it was not able to implement a number of its planned initiatives, which were dependent on the recruitment of a Public Sector Director. The recruitment of the Public Sector Director continues

to be a major challenge for the Institute and an impediment for the Committee to fully execute its mandate. IPSAS being a new phenomenon means that there is shortage of experts in this area and the few experts that are currently available come at premium rates that the Institute cannot afford. The Institute, together with its parent Ministry (MFDP) are continuing to explore ways to source the required expertise.

Standing: Regina Ramanteba, Obed Nokane, Verily Molatedi Seated: Motlalepula V. Kabomo, Gosego Motsamai, Lilly G. MatengeNot in Picture: Mark Sims, Jeanette Makgolo, Betty Skelemani, Madhavan Venkatachary, Dingiswayo D. Sikunyane, Kagiso

Balopi, Jayn Phalalo, Christian J. Mbekomize, Boitumelo Mbaakanyi, Dimpho Seleka, Ronald Phole, Michael Lesolle


Having said that, the Institute participated in the 22nd Annual East & Southern African Association of Accountants Generals (ESAAG) Conference that was held in Dar es Salaam, Tanzania from 9-12 March 2015. The conference theme was “Strengthening Public Financial Management for Socio-Economic Development in the Region” and it covered various topics in the areas of IPSAS, Systems and Procurement, Governance and Oversight, and Public Financial Management (PFM). All the ESAAG member countries were represented at the conference.

Following the engagement of Dr Atuilik to draft a Public Sector Curriculum for PFM courses which aimed at up skilling the staff at the Office of Accountant General (OAG), he produced a draft for review by the Institute and OAG. The Committee commented on the draft and shared their views with the OAG, who then sought services of the IMF to quality assure the curriculum. The IMF task team commenced the review in August 2015 and held various consultations on the curriculum with key stakeholders, including the OAG and the BICA Public Sector Committee. IMF issued their report to the OAG and this has since been released to the

Institute to review and take appropriate next steps. The Institute is still in the process to re-engage with Dr Atulik to close the gaps identified by the IMF task team.

My sincere appreciation goes to all members of the Public Sector Committee who served the Committee. My special gratitude goes to the immediate past Chairperson of this committee, Lilly Matenge, who has continued to volunteer her services as an ordinary member of the committee. I would also like to thank the BICA Council for their support and the Secretariat who ensured that the Committee`s decisions were implemented.

We look forward to a very busy year in 2016 for the Public Sector Committee with the hope that the engagement of a Public Sector Expert will assist the Committee in fulfilling the mandate of BICA in accordance with the Strategic Plan.

Gosego MotsamaiCHAIRPERSON


NORTHERN COMMITTEE

The Northern Committee is an integral part of BICA whose mandate is to drive the BICA strategy and grow the institute in the Northern region by increasing the BICA perception and visibility. It is with great pleasure that I present the report for 2015 on behalf of the Northern Committee.

BICA NORTHERN REGION MARKETING AND AWARENESS CAMPAIGN

The year started with the BICA CEO’s visit in February 2015. Ms Verily Molatedi’s visit was appreciated by the members in the North as it paved a way for the creation of a platform for resolution of concerns raised by members and engagements on other matters regarding the profession.

The CEO also took the opportunity to reiterate the role of BICA, its mandate and the requirements of the Accountants Act 2010. More importantly emphasis was placed on the implications of non-compliance with the Act.

The awareness campaign continued with the Secretariat’s visit to career fairs around the North. BICA participated at career fairs targeted at those completing their Junior Certificate at Mmadinare, Mater-Spei and Selebi- Phikwe Secondary Schools, whose aim was to sensitise them about the Institute and the BICA Qualification. The Secretariat also attended the BOCCIM Northern Trade Fair. This annual event serves to expose BICA to various stakeholders.

STAKEHOLDERS COCKTAIL

The BICA Stakeholders cocktail brought the Council, the Secretariat, the Northern committee and Northern stakeholders to the City of Francistown. The purpose of the event was to introduce new Council and the Northern Committee to BICA stakeholders.

STRATEGIC PLAN OBJECTIVES

Continuing from the previously Identified 4 key focus areas from the BICA 2013-2016 strategic plan which are;i) Positioning the BICA Qualification

and Brand.ii) Increasing the number of BICA

members and professional accountants in the country.

Standing: Raphianos Mushayaganhu, Emmanuel Marufu, Nicolaus Mazuwe, Michel Katombe, Jonathan Msika, Anantha Padmanaban, Christopher Makombe, Thato Thipe

Seated: Leggy Bojosi, Tshegofatso Nkepu, Wame Mothibi, Merapelo RamarulaNot in picture: Kebareng Makone, Bradshaw Zinyemba


iii) Ensuring that BICA attains sustainability.

iv) Improving the services that BICA offers, the committee organised a taxation meeting in line with priority number 4. This meeting, the fi rst of its kind, brought together the following tax practitioners (inter-alia) from the North: Ananth and Associates, FS Accountants, BAC, Acbo, Chartacc, Mark Accounting services, Francistown Panel Beaters, Acctacts and Balaji Accouting Services. A number of issues were discussed and recommendations presented to the BICA Tax Committee for further action with BURS.

SOCIAL ACTIVITIES

The BICA Francistown annual family fun day was once again a success, with 2015 seeing a signifi cant growth in the number of sponsors willing to come on board. The event was sponsored

through the collaborative sponsorship of 28 organizations ranging from the hospitality industry, the media, accounting fi rms, consultancy fi rms, petroleum and a host of others. This well attended event highlighted the BICA stakeholder management through interaction with members, non-members and employers.The annual soccer tournament was the second social event in the calendar and attracted a satisfactory participation of the Institute’s stakeholders.

CPD EVENTS

There has been a growth in the number of CPD events in the North owing to the increase in membership and great awareness on the importance of CPDs. There were 8 CPD events conducted in the year under review, including one free CPD event. The Free CPD event initiative, as intended by BICA has helped drive compliance.

ACKNOWLEDGMENTS

It is an honour to be part of the achievements done by BICA this year. This could not be done without the leadership of the CEO with the secretariat, the Council and the Northern Committee. Your relentless commitment is what is shaping the accounting profession. I would like to show my earnest gratitude to the Northen Committee and thank them for allowing me to chair this year and also recognise the support from my predecessor Mr Anantha Padmanaban.

Michel KatombeCHAIRPERSON

ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2015

26 Statement of responsibility

30Statement of changes in accumulated funds

28Statement of Comprehensive Income

32-42 Accounting policies

27Report of the independent auditors

31 Statement of Cash Flows

29 Statement of Financial Position

43-52Notes to the fi nancial statements


STATEMENT OF RESPONSIBILITY

Council approval of the annual financial statements for the year ended 31 December 2015

Statement of responsibility

The Council members are responsible for the preparation of annual financial statements for each financial year, which give a true and fair view of the state of affairs of the Institute as at the end of the financial period and of the surplus or deficit and cash flows of the Institute for that period. The Council members consider that, in preparing the financial statements for the year ended 31 December 2015 on pages 28 to 52, the Institute has used appropriate accounting policies, consistently applied and supported by reasonable and prudent judgments and estimates. The Council members also consider that all applicable accounting standards have been followed and confirm that the financial statements have been prepared on the going concern basis The Council members are responsible for ensuring that the Institute keeps accounting records which disclose with reasonable accuracy at any time the financial position of the Institute and which enable them to ensure that the financial statements comply with the Accountants Act of 2010. The Council members are also responsible for taking such steps that are reasonably open to them to safeguard the assets of the Institute and to prevent and detect fraud and other irregularities. The auditors’ responsibilities are stated in their report to the members.

The members of the Council are satisfied that the Secretariat introduced and maintained adequate internal controls to ensure that dependable records exist for the preparation of the Institute’s financial statements, to safeguard the assets of the Institute and to ensure all transactions are duly authorised. Events after the end of the reporting periodThere were no material events that occurred after the end of the reporting period that require adjustment to the statement of comprehensive income or the statement of financial position, or that require disclosure in the annual financial statements. Approval of annual financial statementsAgainst this background, the annual financial statements set out on pages 28 to 52 which are stated in Pula, the currency of Botswana, have been approved and authorised for issue on 09 March 2016 by the Council and signed on its behalf by

Peo PillarTreasurer

Place: Gaborone

Frederik C. ElsPresident

Place: Gaborone


Report on the Financial Statements We have audited the accompanying financial statements of the Botswana Institute of Chartered Accountants, set out on pages 28 to 52, which comprise the statement of financial position as at 31 December 2015, and the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes.

Council’s Responsibility for the Financial StatementsThe Council members of the Institute are responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards.

This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances.

Auditor’s ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OpinionIn our opinion, the financial statements give a true and fair view of the financial position of the Botswana Institute of Chartered Accountants as at 31 December 2015, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.

Report on Other Legal Regulatory RequirementIn accordance with section 53(9) of the Accountants Act of 2010 and Rule 42 of the BICA Rules, we confirm that:

t The Institute has kept proper accounting records with which the financial statements are in agreement,t We have received all the information and explanations necessary for the performance of our audit,t The Institute has complied with all the financial provisions of this Act andt The statement of accounts prepared by the Institute was prepared on basis consistent with that of the preceding year

and represents a true and fair view of the transactions and financial affairs of the Institute.

Other matterThe financial statements of the Botswana Institute of Chartered Accountants for the year ended 31 December 2014 were audited by another auditor.

122 Gaborone International Finance Park, Kgale HillPO Box 60552Gaborone

Goel & Associates Certified Auditors

Practicing Member: Sanjay GoelPracticing Certificate No: 19920555

9 March 2016

REPORT OF THE INDEPENDENT AUDITORSTO THE MEMBERS OF BOTSWANA INSTITUTE OF CHARTERED ACCOUNTANTS


STATEMENT OF COMPREHENSIVE INCOMEfor the year ended 31 December 2015

Note 2015 2014Restated

Continuing operations

Income

Revenue earned from services 1 10 452 225 11 455 800 (2014 as previously stated P11 302 235)Government subvention 2 6 100 000 6 100 000 Rental income 20.2 720 715 701 843 Other income 3 569 033 564 434 Recognition of deferred capital grant 16 147 059 147 059

(2014 as previously stated P18 815 571) 17 989 032 18 969 136

Operating expenses

Administration expenses 4 4 814 956 3 871 667 Occupancy costs 5 449 657 452 356 Public relations expenses 6 2 188 825 1 952 969 Training and professional development expenses 7 3 158 640 3 386 947 Staff costs 8 6 234 614 5 987 235

16 846 692 15 651 174

Operating surplus 1 142 340 3 317 962 (2014 as previously stated P3 164 397)

Net finance income 9 250 531 61 794

Net surplus for the year 1 392 871 3 379 756 (2014 as previously stated P3 226 191)

The accounting policies and explanatory notes on pages 28 through 52 form an integral part of the financial statements.


STATEMENT OF FINANCIAL POSITION as at 31 December 2015


ASSETSNon-Current AssetsProperty and equipment 10 11 852 711 11 637 744 Intangible assets 11 172 584 149 689 Deferred operating lease 12 49 674 48 180

12 074 969 11 835 613

Current AssetsInventories 13 681 345 - Trade and other receivables 14 2 055 400 2 544 683 (2014 as previously stated P104 923)Cash and cash equivalents 15 7 237 558 6 098 172

9 974 303 8 642 855

TOTAL ASSETS 22 049 272 20 478 468 (2014 as previously stated P18 128 871)

FUNDS, RESERVED AND LIABILITIESFunds and reservesAccumulated funds 12 022 328 10 629 458 (2014 as previously stated P8 323 485)

Non-Current LiabilitiesDeferred capital grant 16 4 117 646 4 264 705

Current LiabilitiesTrade and other payables 17 3 807 373 3 177 510 Deferred income (advance receipts for subscriptions) 2 101 925 2 406 795

5 909 298 5 584 305

Total liabilities 10 026 944 9 849 010

TOTAL FUNDS AND LIABILITIES 22 049 272 20 478 468 (2014 as previously stated P18 128 871)



STATEMENT OF CHANGES IN ACCUMULATED FUNDSfor the year ended 31 December 2015

Attributable to Government of Botswana

Accumulatedfunds Total

Balance at 1 January 2014 5 097 294 5 097 294

Prior year error - note 22.1 2 152 408 2 152 408

Balance at 1 January 2014 as restated 7 249 702 7 249 702

Changes in equity for 2014:

Surplus for the year as restated 3 379 756 3 379 756

Balance at 31 December 2014 10 629 458 10 629 458

(2014 as previously stated P8 323 485)

Changes in equity for 2015:

Surplus for the year 1 392 871 1 392 871

Balance at 31 December 2015 12 022 329 12 022 329



STATEMENT OF CASHFLOWS for the year ended 31 December 2015


CASH FLOWS FROM OPERATING ACTIVITIES:Surplus for the year 1 392 871 3 379 756 Adjustments for :Net finance income 9 ( 250 531) ( 61 794)Depreciation of property and equipment 10 904 655 812 137 Amortisation of intangible assets 11 96 649 17 591 Movement in deferred operating lease 12 (1 494) (30 483)Recognition of deferred capital grant 16 ( 147 059) ( 147 059)

Surplus before working capital changes 1 995 091 3 970 148

Movement in inventory ( 681 345) - Movement in trade and other receivables 489 282 100 358 Movement in trade and other payables 629 863 1 133 805 Movement in deferred income ( 304 870) 521 827

Cash generated from operations 2 128 021 5 726 138

CASH FLOWS IN INVESTING ACTIVITIES:Purchase of property and equipment 10 (1 119 622) ( 916 343)Acquisition of intangible assets 11 ( 119 544) ( 57 550)Net finance income 250 531 61 794

Cash flows in investing activities (988 635) ( 912 099)

CASH FLOWS IN FINANCING ACTIVITIESRepayment of bank loans - (1 621 790)

Net cashflows in financing activities - (1 621 790)

Net increase in cash and cash equivalents 1 139 386 3 192 249 Cash and cash equivalents at beginning of the year 6 098 172 2 905 923

Cash and cash equivalents at end of the year 7 237 558 6 098 172

Represented by:Balances with bank and on hand 4 568 727 4 906 491 Short Term Investments 2 668 831 1 191 681

Cash and cash equivalents 15 7 237 558 6 098 172


( 30 483)


NOTES TO THE FINANCIAL STATEMENTSas at and for the year ended 31 December 2015

GENERAL INFORMATIONBotswana Institute of Chartered Accountants (BICA) (“the Institute”) is a body corporate with perpetual succession and a common seal, established by an Act of Parliament of Botswana. The addresses of its registered office and principal place of business and its principal activities are disclosed in the general information page of these financial statements.

ADOPTION OF NEW AND REVISED STANDARDS

a) Standards, Amendments and Interpretations effective in the current period for the first time, but are either not material to the amounts reported and/or disclosed in the financial statements or are not relevant to the Institute’s operations

The following new and revised IFRSs issued by the IASB have been applied in the current period, which are mandatorily effective for an accounting period that begins on or after 1 January 2015. These have not had any material impact on the amounts reported in these financial statements, but may affect the accounting for future transactions or arrangements:

Amendments to IAS 19 Defined Benefit Plans: Employee Contributions

The amendments to IAS 19 clarify the accounting treatment for contributions from employees or third parties to a defined benefit plan.

The Institute contributes to a defined pension contribution plan and hence the amendment has not had any impact on these financial statements.

Amendments to IFRSs Annual Improvements to IFRSs 2010-2012 Cycle

Standard Amendment Impact on the Institute’s financial statements

IFRS 13 Fair Value Measurement

Short-term receivables and payables need not be discounted if the effect of discounting is immaterial.

No material impact on the Institute’s financial statements as the Institute does not have any significant overdue receivables and payables.

IAS 16 Property, plant and equipment and IAS 18 Intangible assets

Amendment to remove the inconsistencies in the accounting for accumulated depreciation or amortization when using the revaluation method.

As the Institute does not account for these on a revaluation method, the amendment to this Standard have not had any impact on these financial statements.

IAS 24 Related party Amendment to include the definition of KMP - An entity which provides key management personnel services is also a related party and disclosures are required as such.

The Institute has not engaged an entity which provided key management personnel services, which qualifies as related party transactions as required by the amendment.

Amendments to IFRSs Annual Improvements to IFRSs 2011-2013 Cycle

Standard Amendment Impact on the Institute’s financial

statements

IFRS 13 Fair Value Measurement

The amendment clarifies that the scope of the portfolio exception for measuring the fair value of a group of financial assets and financial liabilities on a net basis included all contracts that are within the scope of, and accounted for in accordance with, IAS 39 or IFRS 9, even if those contracts do not meet the definitions of financial assets or financial liabilities within IAS 32.

As the Institute did not have any portfolio of financial assets or financial liabilities which could be measured on a net basis, this amendment has not had any impact on these financial statements.


NOTES TO THE FINANCIAL STATEMENTS (continued)as at and for the year ended 31 December 2015

Other standards, amendments and interpretations which are effective for the financial year beginning on 1 January 2015 are not applicable to the Institute and have therefore not been included in the discussion above.

b) Standards, Amendments and Interpretations to existing standards in issue not yet effective and have not been early adopted by the Institute

Below is a list of new standards, amendments to existing standards and interpretations that are not yet mandatorily effective (but allow early application) for the year ended 31 December 2015. The Council anticipates that all of the above Standards and Interpretations will be adopted in the Institute’s financial statements for the period commencing 1 January 2016 or later as and when these Standards and Interpretations become applicable. The scope, effective dates and the impact on the financial statements upon their adoption of the above Standards and Interpretations are discussed below.

Standard / Amendment / Interpretation Scope and posible impact Applicable for annual periods beginning on or after

IFRS 9 Financial Instruments (as revised in 2014)

In July 2014, the IASB finalised the reform of Financial Instruments accounting and issued IFRS 9 (as revised in 2014), which contains the requirements for a) the classification and measurement of financial assets and liabilities, b) the impairment methodology and c) general hedge accounting. IFRS 9 (as revised in 2014) will supersede IAS 39 Financial Instruments; Recognition and Measurement upon its effective date.

1 January 2018

IFRS 15 Revenue from contracts with customers

This IFRS deals with revenue recognition and establishes principles for reporting useful information to users of financial statements about the nature, amounts, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. Revenue is recognised when a customer obtains control of a good or service and thus has the ability to direct the use and obtain the benefits from the good or service. The Standard replaces IAS 18 Revenue and related interpretations.

The Institute currently does not have any such contracts but shall review the impact of IFRS 15.

1 January 2018

Amendments to IAS 1 Disclosure Initiative

The amendments were a response to comments that there were difficulties in applying the concept of materiality in practice as the wording of some of the requirements in IAS 1 had in some cases been read to prevent the use of judgment.

The Institute had rarely had such difficulties, but shall review the impact of this IFRS.

1 January 2016

Amendments to IAS 16 and IAS 38 Clarification of Acceptable Methods of Depreciation and Amortisation

The amendments to IAS 16 and IAS 38 prohibit entities from using a revenue-based depreciation method for items of property and equipment.

The Institute accounts for its depreciation and amortization on a straight line basis and does not use revenue as a basis. Hence the amendment will not have any impact on the Institute’s financial statements.

1 January 2016

There are other amendments to IFRSs that are not yet effective but are not likely to have any impact on the Institute and have therefore not been included in the table above.


ACCOUNTING POLICIES

Index to Accounting Policies Page

Statement of compliance ............................................................................................................................................35Basis of preparation and presentation .................................................................................................................35Critical accounting judgments and key sources of estimation uncertainty .....................................35A Cash and cash equivalents ......................................................................................................................36B Employee benefits .......................................................................................................................................36C Foreign currency translation ..................................................................................................................37D Financial instruments .................................................................................................................................37E Property and equipment.........................................................................................................................38F Depreciation ...................................................................................................................................................38G Impairment of non-financial assets ....................................................................................................38H Inventories .......................................................................................................................................................39I Leases .................................................................................................................................................................39J Intangible assets ............................................................................................................................................39K Lease Rights ....................................................................................................................................................40L Tax ........................................................................................................................................................................40M Provisions .........................................................................................................................................................40N Revenue recognition ..................................................................................................................................40O Government grants ....................................................................................................................................41P Related party transactions......................................................................................................................41Q Value added tax (VAT) .............................................................................................................................41R Financial risk management ......................................................................................................................41S Capital risk management .........................................................................................................................42

ACCOUNTING POLICIESas at and for the year ended 31 December 2015


ACCOUNTING POLICIES (continued) as at and for the year ended 31 December 2015

Statement of complianceThe financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) adopted by the International Accounting Standards Board (IASB) which comprise IFRS, International Accounting Standards (IAS) and Interpretations originated by the International Financial Reporting Interpretations Committee (IFRIC) or the former Standing Interpretations Committee (SIC).

Basis of preparation and presentationThe financial statements are presented in Botswana Pula (BWP or P), which is also the functional currency. The financial statements, which assume a going concern basis, have been prepared using the accrual basis of accounting, except for cash flow information. Further, the financial statements have been prepared under the historical cost basis except for certain financial instruments that are measured at revalued amounts or fair values at the end of each reporting period, as explained in the accounting policies below.

Historical cost is generally based on the fair value of the consideration given in exchange for goods and services.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Institute takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of IFRS 2, leasing transactions that are within the scope of IAS 17, and measurements that have some similarities to fair value but are not fair value, such as net realizable value in IAS 2 or value in use in IAS 36.

In addition, for financial reporting purposes, fair value measurements are categorized into Level1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the input to the fair value measurement in its entirety, which are described as follows:

v Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

v Level 2 inputs are in inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly or indirectly; and

v Level 3 inputs are unobservable inputs for the asset or liability.

Balance sheet items are classified as current if receipt or payment is due within twelve months. Otherwise, they are presented as non-current.

The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates and assumptions. It also requires management to exercise its judgement in the process of applying the Institute’s accounting policies. Although the estimates are based on management’s best knowledge of current events and actions, actual results may ultimately differ from those estimates. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed below.

CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

a) Critical accounting judgements in applying the Institute’s accounting policies In the application of the Institute’s accounting policies, which are described below, the Council is required to make

judgements apart from those involving estimations (see note (b) below), that they have made in the process of applying the entity’s accounting policies. These judgements are based on management’s best estimates. There were no areas where critical accounting judgements had the most significant effect on these financial statements.



b) Key areas of estimation uncertainty The preparation of financial statements in accordance with IFRSs requires the use of certain critical accounting estimates

and assumptions. These estimates and assumptions are based on management’s best knowledge of the relevant facts and circumstances taking into account previous experience, but actual results may materially differ from the amounts included in the financial statements. The following are key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year :

i) Residual values and useful lives of assets As described in the accounting policies above, the Institute reviews the estimated useful lives and residual values of

property and equipment at the end of each annual reporting period. During the financial year, the Council determined that the residual lives of all assets of the Institute will have no residual values of any significance at the end of their useful lives; such useful lives being stated in the Institute’s accounting policy on property and equipment.

ii) Use of leasehold land and buildings – The Institute has leased out certain portion of its office building to third parties. In accordance with IAS 40, the portion of the property which is leased out, if saleable, should be classified as Investment Properties. The Institute has not sectionalised its land and buildings. It is also of the office property was developed for self-use by the Institute, and is being rented out temporarily to provide a return to the stakeholder. As the Institute increases its services, it will utilize the currently leased office premises for self-use, and hence has classified all the leasehold land and buildings as Property and Equipment under IAS 16.

The financial statements incorporate the following accounting policies which have been consistently applied in all material aspects to all the years presented.

A Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments

with original maturities of less than three months, and bank overdrafts. Cash and cash equivalents are carried in the statement of financial position at fair value.

B Employee benefitsSalaries, wages, social costs, paid annual leave, paid sick leave, performance bonuses payable within twelve months of the end of the period, non-monetary benefits and workmen’s compensation insurance, payable to current employees of the Institute, are recognized when they accrue and are disclosed as short-term employee benefits.

Employees include full-time, part-time, permanent, casual or temporary employees. Employees also include the Executive management personnel, but do not include Council members who offer honorary services to the Institute.

Pension fund contributionThe Institute contributes to a defined pension contribution plan for its employees. It makes contributions to the Mompati Retirement Annuity Fund administered by Botswana Life Insurance Limited (BLIL). This operates like a defined contribution plan where the Institute and staff members make fixed contributions based on pensionable earnings into the Fund. The Institute does not have a legal or constructive obligation to pay further contributions if the fund fails to meet employee benefits from these life policies.

For those employees who do not participate in this Retirement Annuity Fund, provision is made for statutory severance benefit in terms of the Employment Act (Cap 47:01).

Leave payThe Institute provides for leave pay at the end of the year based on the number of leave days accrued and the salary cost to the Institute at the year end.

Contractual gratuityContract staff members of the Institute are entitled to gratuities at the end of their contracts at the rates and in accordance with the terms specified in their contracts of employment. Gratuities are recognized at the end of each financial year as they are accrued and a provision is made up to the end of each reporting period which approximates the liability estimated as the employee renders services to the Institute.



C Foreign currency translation The Institute’s presentation and functional currency is the Botswana Pula.

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statement of comprehensive income within ‘finance income or cost’. All other foreign exchange gains and losses are presented in statement of comprehensive income within ‘net foreign exchange gains.’

At each reporting date, monetary assets and liabilities denominated in foreign currencies are converted using year-end spot foreign exchange rates. Non-monetary assets and liabilities carried at fair value that are denominated in foreign currencies are converted using foreign exchange rates prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

D Financial instruments Classification The Institute classifies its non-derivative financial assets in the following categories:

v Financial assets at fair value through profit or lossv Loans and receivablesv Held-to-maturity investments, andv Available-for-sale financial assets.

The classification depends on the purpose for which the financial assets were acquired. The Council determines the classification of its investments at initial recognition and re-evaluates this designation at each reporting date.

Financial instruments are recognised on the balance sheet on the trade date, the date on which the Institute becomes a party to the contractual provisions of the financial instrument.

All financial instruments are required to be classified and measured at fair value on initial recognition. Measurement in subsequent periods is dependent upon the classification of the financial instrument.

During the year the Institute held all its financial assets under the loans and receivables category. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an

active market. They are included in current assets, except for maturities greater than 12 months after the reporting date, which are classified as non-current assets. The Institute’s loans and receivables comprise trade receivables and cash and cash equivalents in the balance sheet.

Recognition and measurement Regular purchases and sales of financial assets are recognised on the trade-date, the date on which the Institute commits

to purchase or sell the asset. Investments are initially recognised at fair value plus transaction costs for all financial assets not carried at fair value through statement of comprehensive income. Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have been transferred and the Institute has transferred substantially all risks and rewards of ownership. Loans and receivables are carried at amortised cost using the effective interest method. Interest is recognised by applying the effective interest rate.

The Institute assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired. A significant or prolonged decline in the value of an asset below its cost is considered as an indicator that the assets are impaired.

De-recognition of financial assets The Institute derecognises a financial asset only when the contractual rights to the cash flows from the asset expire; or it

transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the institute neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the


transferred asset, the Institute recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the Institute retains substantially all the risks and rewards of ownership of a transferred financial asset, the Institute continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

Financial liability at amortized cost Financial liabilities are measured at amortized cost using the effective interest method. Bank debt and long-term debt are

recognised initially at fair value, net of any transaction costs incurred, and subsequently at amortized cost using the effective interest method.

The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

E Property and equipmentLeasehold land and buildings held for use for administrative purposes are stated in the statement of financial position at cost, less accumulated depreciation and accumulated impairment losses.

All other property and equipment are stated at cost, less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Institute and the cost of the item can be measured reliably. All other repairs and maintenance expenditures are charged to the income statement during the financial period in which they are incurred.

Gains or losses arising on the disposal or retirement of an item of property and equipment is determined as the difference between the sale proceeds and the carrying amount of the asset and is recognised in profit or loss.

F Depreciation Depreciation is calculated using the straight-line method to allocate the cost or valuation of each asset over the useful life

of the asset as follows: Leasehold land the shorter of 50 years or remaining lease periodLeasehold building the shorter of 50 years or remaining lease periodFurniture, fittings and equipment 4 yearsComputer equipment 4 yearsOffice equipment 4 yearsMotor Vehicle 4 yearsLeasehold improvements 5 years

Leasehold improvements are depreciated over the shorter of their estimated useful lives or the term of the related lease.

The asset’s residual values, useful lives and methods of depreciation are reviewed, and adjusted if appropriate, at each financial year end and accounted for on a prospective basis.

Major renovations are depreciated over the remaining useful life of the related asset or to the date of the next major renovation, whichever is sooner.

An item of property and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal Proceeds and the carrying amount of the asset) is included in the statement of comprehensive income in the year the asset is derecognised.

G Impairment of non-financial assets Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that

are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell



and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). Non-financial assets that suffered impairment are reviewed for possible reversal of the impairment at each reporting date.

H Inventories Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Inventories comprise

of BICA qualification text books held for sale by the Institute.

The cost of books comprises of the costs of purchase and other costs incurred in bringing the books to their present location and condition. Selling costs are excluded.

Cost is determined on a first-in and first-out (FIFO) basis. The above text books undergo impairment when a revised amendment is announced or an updated text book is released.

The carrying amount of such an item of text book is reduced to nil, such impairment loss being recognised immediately in profit or loss.

At the end of each reporting period, the Institute assesses whether any other inventories are impaired, i.e. the carrying amount is not fully recoverable (e.g. because of damage, obsolescence or declining selling prices) by comparing the carrying amount of each item of inventory, or group of similar items, with its selling price less costs to complete and sell. If an item, or group of items, of inventory is impaired, the Institute reduces the carrying amount of such inventory to its selling price less costs to complete and sell, and recognizes such reduction, which is an impairment loss, immediately in profit or loss.

When inventories are sold, the Institute recognizes the carrying amount of those inventories as an expense in the period in which the related revenue is recognized.

I Leases The determination of whether an arrangement is, or contains, a lease is based on the substance of the arrangement

at inception date: whether fulfilment of the arrangement is dependent on the use of a specific asset or assets or the arrangement conveys a right to use the asset.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

The Institute have operating leases both as a lessor and as a lessee.

Institute as a lessor Rental income is recognised on a straight line basis over the term of the relevant lease, and is included in revenue in the

statement of comprehensive income.

Institute as a lessee The Institute has entered into an operating lease for its satellite office in Francistown. The payments are recognised as an

expense in the Statement of Comprehensive Income on a straight line over the lease term. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred.

J Intangible assets Intangible assets comprise of computer software.

Costs that are directly attributable for the installation of identifiable computer software controlled by the Institute, and that will probably generate economic benefits exceeding costs beyond one year, are recognised as intangible assets.

Computer software costs recognised as assets are amortized over their useful lives on a straight-line basis, which does not exceed two years and are tested annually for impairment.

Costs associated with maintaining computer software are recognised as an expense as incurred.



K Lease Rights Lease rights represent rights covered by contract or similar arrangement to occupy, lease out or otherwise utilise property.

Separately acquired lease rights are shown at historical cost. Where land rights are acquired directly through agreement with Government, the Institute records these at nominal amounts the inception of the underlying lease/rental agreements or when such agreements are renewed.

Lease rights have a finite useful life based on the underlying contractual agreement assigning such right to the lessor and are carried at cost less accumulated amortisation. Amortisation is calculated using the straight–line method to allocate the cost of lease rights over their estimated useful lives based on contractual terms.

L Tax The Institute is exempt from Income Tax in accordance with paragraph XIV of the Second Schedule of the Income Tax Act

(Cap 52:01) as amended.

M Provisions Provisions are recognised when the Institute has a present obligation (legal or constructive) as a result of a past event, and

it is probable that the Institute will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at balance sheet date, taking in to account the risk and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the receivable can be measured reliably. Provisions are measured at the Institute’s best estimate of the expenditure required to settle the obligation at the balance sheet date, and are discounted to the present value where the effect is material

N Revenue recognition The Institute renders services to its members, its students and fellow professional institutes. Revenue earned from such

services is measured at the fair value of the consideration received or receivable for the services rendered. Revenue is recognized net of Value Added Tax, rebates, discounts and similar price reductions. The Institute recognizes revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Institute and when specific accrual criteria set for each revenue stream, as set out below, have been met:

i. Membership fees, including admission fees and subscriptions are due for a calendar year or portion thereof, and are recognized as revenue over the underlying period for which the fees have been charged.

ii. Seminar, workshop and conference revenues relate to fees charged by the Institute to individuals for participation in professional development and similar professional events. The income is recognized at the conclusion of the specific event for which fees was received.

iii. Services to other professional bodies include registration, administration and similar services performed for fellow professional institutes. Revenue for such services is recognized when services are rendered.

iv. Fees for accreditation to the BICA qualification are recognized over the applicable course study period.

v. Income from sale of BICA books and study materials is recognised when all the following conditions are satisfied:a) The Institute has transferred to the buyer the significant risks and rewards of ownership of the goods;b) The Institute retains neither continuing managerial involvement to the degree usually associated with ownership

nor effective control over the goods sold; andc) The costs incurred or to be incurred in respect of the transaction can be measured reliably.

vi. Government subvention is recognised in the statement of comprehensive income according to the policy on Government grants as described in note O below.



Rental incomeThe Institute has entered into operating leases with certain tenants while sub-leasing some portions of its leasehold building. The receipts are recognized on a straight line basis over the term of the lease.

Other incomeOther income mainly comprises of receipts from Annual Dinner Dance Event, AAT Annual Awards Event, Income from sales of BICA branded literature and merchandise, and publication income from the sale of advertising space in BICA’s quarterly magazine.

Event income is recognized when BICA hosts the respective events.

Income from sales of BICA branded literature and merchandise is recognised in the same manner as if it is a sale of books and study material as described above.

Income from the sale of advertising space in the quarterly magazine is recognized when the relevant advertisement is published.

Interest income Interest income is accrued on a time-proportion basis using the effective interest method. When a receivable is impaired, the Institute reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at original effective interest rate of the instrument, and continues unwinding the discount as interest income.

O Government grants Government grants are recognised when there is reasonable assurance that the grant will be received and all attached

conditions will be compiled with.

When the grant relates to an expense item, it is recognized as income over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate.

When the grant relates to an asset it is recognized as deferred income as a liability and it is released to income in equal amounts over the remaining lease period of the asset.

P Related party transactions The Institute maintains a very close relationship with the Government of Botswana. The Government of Botswana provides

significant income to the Institute through capital grants and operational subventions and also has a statutory right to representation of up to three members of the Institute’s Council. Transactions directly with the Government of Botswana are treated as related party transactions.

However transactions with entities related to the Government of Botswana, such as the Botswana Accountancy College, the University of Botswana, the Botswana Unified Revenue Services which are autonomous bodies on their own, have not been treated as related party transactions.

Q Value added tax (VAT) Revenue, expenses and assets are recognised net of the amount of VAT, except where the amount of VAT incurred is not

recoverable from the Botswana Unified Revenue Service (BURS). In these circumstances the VAT is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables in the statement of financial position are shown inclusive of VAT. VAT receivable or payable at the end of the reporting period is disclosed under other receivables or other payables respectively.

R Financial risk management The Institute’s financial instruments are exposed to certain financial risks, including interest rate risk, credit risk, foreign

exchange risk and liquidity risk.

Interest rate riskThe Institute invests with reputable financial institutions and is subject to cash flow interest rate risk.



Credit riskThe exposure to credit risk arises through the failure of a customer or another third party to meet its contractual obligations to the Institute. The Institute believes that its maximum exposure to credit risk as at 31 December 2015 is the carrying value of its trade receivables. With respect to credit risk arising from the other financial assets of the Institute, which comprise cash and cash equivalents, the Institute’s exposure to credit risk arises from default of the counter party, with a maximum exposure equal to the carrying amount of these instruments. The Institute limits material counter party credit risk on these assets by dealing with highly accredited financial institutions.

See note 19.4 for details.

Foreign exchange riskThe Institute transacts with other International Professional Bodies and is exposed to foreign exchange risk arising from various currencies, primarily with respect to the Pound Sterling.

The Institute’s risk management objective is to manage cash flow risk related to foreign denominated cash flows. The Institute is exposed to currency risk related to changes in rates of exchange between the above foreign currencies and the local currency in which it operates which is the Botswana Pula. A significant change in the currency exchange rate between the above currencies and the Botswana Pula could have a material effect on the Institute’s surplus.

As at 31 December 2015, the Institute is exposed to currency risk through trade receivables, trade payables and certain bank accounts denominated in Pound Sterling. The currency risk profile is illustrated in note 21. It demonstrates that the receivables in the Pound Sterling exceed the payables in the same currency thus eliminating the foreign exchange risk.

The impact of a Pound Sterling change against the Pula by 10% at 31 December 2015 is calculated in note 21.1.

Liquidity risk The Institute has in place a planning and forecasting process to help determine the funds required to support the Institute’s normal operating requirements on an ongoing basis. The Institute ensures that there is sufficient committed capital to meet its short term business requirements, taking into account its anticipated cash flows from operations and its holdings of cash and cash equivalents.

The Institute’s only non-current liabilities are in the form of a non-refundable grant (see note 16). All current liabilities are settled within one year. It has adequate liquidity ratios and solvency ratios.

S Capital risk management The Institute’s objectives when managing its capital include insuring a sufficient combination of positive operating cash

flows and reserves in order to meet its capital programs in a way that maximizes the shareholder return given the assumed risks of its operations while, at the same time, safeguarding the Institute’s ability to continue as a going concern. The Institute considers the following items as capital: excess cash balances and the accumulated funds and reserves. The non-refundable deferred capital grant was for the development of the Institute’s office premises and is not considered as capital. The Institute is not subject to any externally imposed capital requirements.

The Institute has a low gearing ratio and has a well balanced plan for its immediate capital commitments.

Planning, annual budgeting and controls over major investment decisions are the primary tools used to manage the Institute’s capital. Updates are made as necessary to both capital expenditure and operational budgets in order to adapt to changes as required by time to time.

The Council reviews the capital structure of the Institute at least on a semi-annual basis.



2015 2014Restated

1 REVENUE EARNED FROM SERVICESMembership fees received 4 731 423 4 080 565 Income from seminars and workshops 2 693 448 3 552 293 Services to other professional bodies 2 002 397 2 639 392 (2014 as previously stated P2 485 827) - note 22.3BICA admin fees, subscriptions and sale of books 1 024 957 1 183 550

(2014 as previously stated P 11 302 235) 10 452 225 11 455 800

2 GOVERNMENT SUBVENTIONReceived from Government of Botswana 6 100 000 6 100 000

The Government of Botswana provides for part running of the Institute by way of an annual subvention from the Consolidated and Development Fund. An amount of P6 072 190 has been approved for the financial year 2016/17. See note 18.2.

3 OTHER INCOMEDinner dance income 148 527 159 152 AAT annual award event reimbursement 194 468 187 791 Sale of publications 134 917 103 725 Sundry income 91 121 113 766

569 033 564 434

4 ADMINISTRATION EXPENSES 4 814 956 3 871 667 - includes amortization of intangible assets (note 11) 96 649 17 591 - includes depreciation on equipment (note 10) 559 142 466 624

5 OCCUPANCY EXPENSESDepreciation - leasehold land and buildings (note 10) 345 513 345 513 Rental – Francistown satellite office 104 144 106 843

449 657 452 356

6 PUBLIC RELATIONS EXPENSES 2 188 825 1 952 969

7 TRAINING AND PROFESSIONAL DEVELOPMENT EXPENSES 3 158 640 3 386 947

NOTES TO THE FINANCIAL STATEMENTS as at and for the year ended 31 December 2015


2015 2014

8 STAFF COSTSShort-term employee benefits

Salaries and wages 3 933 551 3 791 006

Allowances and benefits 718 843 613 349

Performance rewards 247 814 349 929

Leave pay 127 650 206 900

Group life cover, medical aid and uniform costs 122 806 219 100

Training, conferences and staff welfare 434 893 204 940

Post employment benefitsGratuity and severence pay 378 690 334 926

Pension Fund contributions 270 367 267 085

Other long-term employee benefits - -

6 234 614 5 987 235

8.1 The average number of persons employed by the Institute during the year was 22 (2014: 24).

8.2 Included in the staff costs is remuneration paid to key management personnel (see note 18.1)Short-term employee benefits 1 680 959 1 317 727

Post employment benefits 181 210 242 639

Other long-term employee benefits - -

1 862 169 1 560 366

9 FINANCE INCOME / COSTSFinance income 201 725 110 951

Exchange gain on cash and cash equivalents 50 772 -

Finance costs ( 1 966) ( 49 157)

Net finance income 250 531 61 794

Refer to note 19.3.

NOTES TO THE FINANCIAL STATEMENTS31 December 2015

NOTES TO THE FINANCIAL STATEMENTS (continued) as at and for the year ended 31 December 2015


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11 INTANGIBLE ASSETSComputer SoftwareCostAt beginning of the year 293 957 236 407 Acquisitions during the year 119 544 57 550

At end of the year 413 501 293 957

Accumulated amortisationAt beginning of the year 144 268 126 677 Current year charge (note 4) 96 649 17 591


Carrying amount At end of the year 172 584 149 689

12 DEFERRED OPERATING LEASEAt beginning of the year 48 180 17 697 Movement for the year 1 494 30 483


13 INVENTORIESStudy books - at cost 681 345 -

Total inventory at lower of cost and net realisable value 681 345 -

13.1 Inventory write-downsIncluded in profit or loss for the year - -

13.2 Inventory recognised as an expense during the periodOpening balance of inventory - -Add: Purchases 1 315 427 477 126

1 315 427 477 126 Less: Inventory write-downs - -Less: Closing balance of inventory ( 681 345) -

634 082 477 126

13.3 Inventory, non-material to the financial statements, were expensed out in the past financial years.


2015 2014


14 TRADE AND OTHER RECEIVABLESTrade receivables 1 894 730 2 305 973 (2014 as previously stated Pnil) - note 22.2Staff advances and loans 13 895 90 163 Prepayments and other receivables - note 14.4 146 775 148 547 (2014 as previously stated P104 923)

(2014 as previously stated P195 086) 2 055 400 2 544 683

14.1 Analysis of trade receivables past due but not impairedOverdue 30 days - 60 days - Overdue 60 days - 90 days 3 245 - Overdue above 90 days 15 470 -

18 715 -

14.2 Analysis of trade receivables neither past due nor impaired 1 876 015 2 305 973

14.3 Allowance for doubtful debts - -

14.4 Carrying amount of trade receivables pledgedas security for liabilities - -

14.5 The carrying amounts of trade and other receivables is a reasonable approximation of their fair values as at the end of the reporting period. The Institute did not hold any collateral or security on its trade receivables.

14.6The average credit period offered to customers is 30-60 days. No interest is charged on the trade receivables for the first 60 days from the date of the invoice. Thereafter, interest is charged at 2% per month on the outstanding balance. Trade receivables are provided for based on estimated irrecoverable amounts from the sale of services or goods determined by reference to past default experience.

14.7 Before accepting any new customer, the Institute uses an internal vetting system to assess the potential customer’s credit quality and defines credit limits by customer. Limits and scoring attributed to customers are reviewed once a year.

14.8 Rental security deposits from tenants of the Institute were netted off against pre-payments in 2014. These deposits have now been reclassified as other payables (note 17).


2015 2014 2015 2014Restated


2015 2014Restated

15 CASH AND CASH EQUIVALENTSBalances with bank and on hand (note 15.1) 4 568 727 4 906 491 Short Term Investments (note 15.2) 2 668 831 1 191 681

7 237 558 6 098 172

15.1 Out of these bank balance an amount of P1 977 664 (2014: P1 417 497) is held in trust accounts for various international professional governing bodies. An agreement exists between the Institute and such other governing bodies wherein students in Botswana pay their professional dues directly into a BICA bank account and BICA repatriates these monies weekly to the respective bodies.

15.2 Short Term Investments represent investment in Stanlib Botswana Money Market Fund with Stanlib Investment Management Services. The interest is determined on 7-day yield, which at the reporting date was 4.48% (2014:7.02%).

15.3 For the purposes of the cash flow statement, cash and cash equivalents include cash in hand and at banks.

16 DEFERRED CAPITAL GRANTAt beginning of the year 4 264 705 4 411 764 Recognised in the statement of comprehensive income ( 147 059) ( 147 059)

At end of the year 4 117 646 4 264 705

16.1 This non-refundable grant was received from the Government of Botswana for the construction of the Institute”s building. It is recognised in the statement of comprehensive income over the period of the lease of the leasehold land as stated in note 10.1.

17 TRADE AND OTHER PAYABLESTrade payables, including dues to professional bodies 2 460 436 1 577 833 Provision for legal expenses 106 249 - VAT accrual 68 567 226 152 Other accruals - note 14.8 1 172 121 1 373 525 (2014 as previously stated P1 329 901)

(2014 as previously stated P3 133 886) 3 807 373 3 177 510

17.1 The carrying amounts of trade and other payables is a reasonable approximation of their fair values as at the end of the reporting period.

17.2 The average credit period on purchases of certain goods is 30 days. No interest is charged on trade payables for the first 60 days from the date of the invoice. Thereafter interest may be charged at 1.5% per month on the outstanding balance by some suppliers. The Institute has financial risk management policies in place to ensure that all payables are paid within the credit time frame.

18 RELATED PARTY TRANSACTIONS AND BALANCES

Related party transactions where control exists include the following, whether there have been transactions or not:

Nature of relationshipGovernment of Botswana Principal stakeholderLevel of Director and above Key management personnel

During the period, the Institute entered into transactions with the above parties. These transactions together with outstanding balances and commitments at the reporting date are as below:



18.1 Compensation of key management personnel (refer to note 8.2)

18.2 Subvention received from Government of Botswana (note 2) 6 100 000 6 100 000

19 FINANCIAL INSTRUMENTS19.1 Financial assets

Trade receivables 14 1 894 730 2 305 973 Cash and cash equivalents 15 7 237 558 6 098 172

9 132 288 8 404 145

19.2 Financial liabilitiesTrade payables 17 2 460 436 1 577 833

19.3 Net gains and losses by financial instrument categoryLoans and receivables

Finance income 9 201 725 110 951 Exchange gain on cash and cash equivalents 9 50 772 -Finance costs 9 ( 1 966) ( 49 157)

250 531 61 794

19.4 Credit risk exposureTotal credit risk comprises:

Cash and bank 15 4 568 727 4 906 491 Short term Investments 15 2 668 831 1 191 681 Trade receivables 14 1 894 730 2 305 973

9 132 288 8 404 145

19.5 Fair value of financial instruments19.5.1 Fair values of financial instruments are determined by valuation method depending on hierarchy levels as defined

in the accounting policies.

The carrying values of certain financial instruments maturing in the short-term approximates their fair values. These financial instruments include cash and cash equivalents, trade receivables which are classified as loans and receivables, and trade payables which are classified as amortized cost.

19.6 Financial instruments designated at fair value through profit or loss

There are no financial instruments which the Institute has designated at fair value through profit or loss.

19.7 Financial assets pledged as collateralThe Institute has not pledged any financial assets as collateral.

19.8 Financial assets received as collateralThe Institute has not received any financial assets as collateral.


2015 2014


Note 2015 201420 OPERATING LEASE

COMMITMENTS

20.1 The Institute as a lessee

20.1.1 Leasing arrangements

Operating leases relate to the Institute’s operating office premises in Francistown with lease term of 5 years, with an option to extend for a further 5 years. All operating lease contracts contain market review clauses in the event that the Institute exercises its option to renew. The Institute does not have the option to purchase the leased asset at the expiry of the leased period.

20.1.2 Payments recognized as an expense

(note 5) 104 144 106 843

20.1.3 Non-cancellable operating lease commitmentsNot later than 1 year 143 022 130 020 Later than 1 year but not later than 5 years 330 380 473 397 Later than 5 years - -

473 402 603 417

20.2 The Institute as a lessor

20.2.1 Leasing arrangements

Operating lease relates to the leasehold buildings rented out with lease term of 3 years, escalating by 10% per annum, with an option to renew for a further 3 years at the choice of the lessee. The lease contract contains market review clauses in the event that the lessee exercises its option to renew. The tenant does not have the option to purchase the leased asset at the expiry of the lease period.

20.2.2 Payments recognized as an income 720 715 701 843

20.2.3 Non-cancellable operating lease commitmentsNot later than 1 year 619 139 790 389 Later than 1 year but not later than 5 years 241 508 860 647 Later than 5 years - -

860 647 1 651 036



21 CURRENCY RISK PROFILEThe following exchange rates were used for conversion of assets and liabilities at year end:

Pound BotswanaSterling (GBP) Pula

31 December 2014 1.000 14.4382 31 December 2015 1.000 16.2670

The following is the net foreign currency exposure of the Institute:GBP BWP TOTAL

31 December 2014AssetsProperty and equipment - 11 637 744 11 637 744 Intangible assets - 149 689 149 689 Deferred operating lease - 48 180 48 180 Trade and other receivables 2 305 973 238 710 2 544 683 Cash and cash equivalents 1 173 535 4 924 637 6 098 172

Total assets 3 479 508 16 998 960 20 478 468

LiabilitiesDeferred capital grant - 4 264 705 4 264 705 Trade and other payables 1 417 498 1 760 012 3 177 510 Deferred income - 2 406 795 2 406 795

Total liabilities 1 417 498 8 431 512 9 849 010

Net foreign currency exposure 2 062 010 8 567 448 10 629 458

31 December 2015 GBP BWP TOTALAssetsProperty and equipment - 11 852 711 11 852 711 Intangible assets - 172 584 172 584 Deferred operating lease - 49 674 49 674 Inventories - 681 345 681 345 Trade and other receivables 1 620 717 434 683 2 055 400 Cash and cash equivalents 1 798 381 5 439 176 7 237 557

Total assets 3 419 098 18 630 173 22 049 271

LiabilitiesDeferred capital grant - 4 117 646 4 117 646 Trade and other payables 2 186 698 1 620 675 3 807 373 Deferred income - 2 101 924 2 101 924

Total liabilities 2 186 698 7 840 245 10 026 943

Net foreign currency exposure 1 232 400 10 789 928 12 022 328

21.1 The strengthening of GBP against the Pula by 10% at 31 December 2015 would have had an approximate positive impact of P123 000 (2014: 206 000) on the Institute’s surplus, with all other variables held constant.



22 PRIOR YEAR ERRORIncome from AAT subvention has been recorded on a cash basis in the previous financial statements. This happened because of lack of clarity in the agreement with AAT as regards to the dates on which the subvention is paid and the basis in which it is calculated. This was noted during the current year. A written confirmation to this effect has been obtained from AAT.

22.1 Amount received and accounted for in 2014, but belongs to 2013 2 152 408 This has positively affected the opening accumulated funds at 1 January 2014

22.2 Amount received and accounted for in 2015, but belongs to 2014 2 305 973 This has increased the trade receivables at 31 December 2014

22.3 The net effect of the above has resulted in increase in surplus for 2014 153 565

23 CONTINGENT LIABILITIESThe Council members confirm that as at the reporting date there were no contingent liabilities not provided for which required disclosure.

24 CONTRACTUAL CAPITAL COMMITMENTSThe Council members confirm that there were no significant contractual capital commitments as at the reporting date which require disclosure.

25 EVENTS AFTER THE END OF THE REPORTING PERIODThere were no material events that occurred after the end of the reporting period that require adjustment to the statement of comprehensive income or the statement of financial position, or that require disclosure in the annual financial statements.



2015 2014Restated

ADMINISTRATION EXPENSESAmortisation of intangible assets 96 649 17 591 Bad debts 52 383 - Bank charges 106 523 67 617 BOCCIM memebership fees 2 402 2 632 Cleaning and refreshments 247 161 191 662 Computer consumables 75 277 101 215 Consultancy fees 1 050 460 756 765 Courier and postage 135 222 144 373 Database Licencing and maintenance 224 918 62 734 Depreciation - equipment 559 142 466 624 Entertainment expenses 2 941 - Francistown satellite office adminstration and travelling costs 72 634 41 106 Office expenses 96 033 168 469 Insurance 75 914 183 112 Internet services 24 288 14 881 Legal expenses 131 329 - Levies 63 620 61 998 Licences and permits 36 471 96 314 Miscellaneous expenses 37 189 62 602 Motor vehicle expenses 16 835 26 513 Photocopier rental, maintenance and supplies 335 928 243 654 Practice monitoring costs 218 750 266 316 Printing and stationery 138 531 148 181 Recruitment expenses 84 906 5 263 Repairs and maintenance 342 161 277 661 Subscriptions to professional bodies 178 797 144 579 Telephone, fax and cellphone 202 531 167 601 Training levy 17 068 21 866 Transport charges 14 800 8 913 Utilities 150 093 97 025 Website maintenance 24 000 24 400

4 814 956 3 871 667

PUBLIC RELATIONS EXPENSESAdvertising and promotions 56 847 57 899 AGM, dinner dance and cocktail costs 671 033 610 003 AAT annual award event costs 178 912 177 378 Pastel licence 5 000 88 335 Marketing and branding costs 994 115 670 567 Publication expenses 155 272 158 588 Purchase of promotional items 127 646 190 199

2 188 825 1 952 969


DETAILED STATEMENT OF ADMINISTRATION, PUBLIC RELATIONS AND TRAINING AND PROFESSIONAL DEVELOPMENT EXPENSES


TRAINING AND PROFESSIONAL DEVELOPMENT EXPENSESBICA qualification course materials and other costs 1 336 508 1 357 440 Business travel and accommodation to external meetings 382 572 418 420 International conference - 175 776 Seminars and workshops 1 439 560 1 435 311

3 158 640 3 386 947

This schedule is presented solely for the information of the members and is not covered by the audit opinion.



GENERAL INFORMATION INCORPORATION AND NATURE OF BUSINESS Botswana Institute of Chartered Accountants (the Institute) is the professional body for accountants domiciled in the Republic of Botswana. The Institute was incorporated in Botswana in terms of the Accountants Act of 2010. The role of the Institute is to represent its members’ interests, develop the Accounting profession, protect the public interest, and ensure observance of the highest professional and ethical standards by its members and to carry out any other functions expected of a professional accountancy and membership body. COUNCIL MEMBERS Mr Frederik C Els PresidentMs Gosego Motsamai Vice-PresidentMs Peo Pillar TreasurerMr Rudi Binedell MemberMs Tshegofatso B. Modise MemberMr Moshe C. Zila Libengo MemberDr. Mpho N. Isaiah Ministerial AppointeeMr Conductor P. Masena Ministerial AppointeeMs Boineelo Peter Ministerial AppointeeMr Michel Katombe Northern Region RepresentativeMs Mpho Masuge Accounting Technician Member Representative

SECRETARIAT Ms Verily Molatedi Chief Executive Officer POSTAL ADDRESS REGISTERED OFFICE Private Bag 0021 Plot 50374, Block 3Gaborone First, Second & Third Floor, Fairgrounds Financial CentreBotswana Gaborone, Botswana HONORARY AUDITORS

Goel & Associates BANKERS

Stanbic Bank Botswana Limited Stanbic Investment Management Services (Proprietary) LimitedBank of Baroda (Botswana) Limited


Vision

Values

Mission

BICA VISIon, MISSIon & CoRe VAlueS

BOTSWANA INSTITUTE OF CHARTERED ACCOUNTANTS

To be the leading accountancy professional body with an internationally recognized professional accountancy qualifi cation

To protect public interest through:

• Promoting the accountancy profession

• Facilitating quality professional accountancy services through the monitoring and regulation of professional accountants


• Integrity

• Excellence

• Independence

• Transparency and Accountability

Impression House Tel: +267 3922984 / 3163808


Tel: +267 3972992Fax: +267 3972982Email: [email protected]: www.bica.org.bw

AnnuAl RepoRt

Botswana InstItute of Chartered aCCountants

@bicabw Botswana Institute of Chartered Accountants

Documents

AnnuAl RepoRt - BICA annual report 2015.pdf · HISTORICAL PERSPECTIVE ... commitment in mentoring and coaching the students. The students’ records on ... ACCOUNTANTS (IFAC) As a