Newsline KASNEB · 4 KASNEB Newsline, Issue No. 2 April - June 2013 April - June 2013 KASNEB Newsline, Issue No. 2 5 Biometrics implementing such security measures. Every biometric

KASNEB Newsline, Issue No. 2 April - June 2013 April - June 2013 KASNEB Newsline, Issue No. 2PB i

NewslineThe Professional Journal of KASNEB Issue No. 2 April - June 2013

KASNEB

KASNEB

BIOMETRICS

April - June 2013 KASNEB Newsline, Issue No. 2 1

Contents

KASNEB

Editor HonorarisPius M. Nduatih

Editorial TeamStaff members of KASNEB

Circulation Office

KASNEB Towers Hospital Road, Upper HillP.O. Box 41362 - 00100

Nairobi - KenyaTel: 254(020) 2712640 / 2712828

Cellphone: 0722-201214/0734-600624Fax: 254(020) 2712915

E-mail: [email protected]: www.kasneb.or.ke

KASNEB Newsline is the professional students journal of KASNEB.

The views expressed in this journal are those of the respective authors and do not necessarily reflect those of KASNEB.

The Editor welcomes contributions from readers especially students and trainers in accountancy, finance, management, administration, ICT and cognate subjects.

The Editor reserves the right to edit articles for the purposes of clarity and brevity.

Trainers and students are free to photocopy materials contained in this journal for purposes of learning without seeking prior consent from KASNEB.

Reproduction is allowed without charge as long as prior consent is sought and the source acknowledged.

Correspondence should be addressed to:

The EditorKASNEB Newsline

Marketing and Corporate AffairsUnit

P.O. Box 41362 - 00100NAIROBI.

NewslineKASNEBEditorialPage 2

Business intelligencePage 10

BiometricsPage 3

Integrated accountsPage 32

The fuel of academic excellence Page 38

PictorialPage 44

KASNEB updatesPage 43

Credit Reference BureausPage 19

Prize winnersPage 53

Financial Accounting

Cos

t Acc

ount

ing

Editorial

Editor HonorarisPius M. Nduatih

Security of persons and information ranks high among the challenges that

countries and organisations continue to grapple with. As efforts to address this

challenge continue to gather momentum, focus is quickly shifting to information

technology to provide a panacea. In this connection, one of the technology

frontiers being explored is the use of biometrics.

Biometrics has been basically defined as the use of digital technology to verify

a person's identity based on physical and biological traits. It is envisaged that

this technology will revolutionalise access control to facilities and information

and hopefully tackle the inherent security challenges head-on.

In an effort to keep our readers in tune with emerging issues in information

technology, this edition of the KASNEB Newsline features a lead article

on biometrics. The writer sheds light on this cutting-edge technology and

summarises the main benefits expected to be derived by countries and

organisations from its adoption.

The second article focusses on the role of business intelligence in propelling

organisational growth. The writer spotlights the components of a business

intelligence road map and explores the various applications of this concept in

an organisational set-up.

With the profession of credit management steadily entrenching itself in industry,

it is important that emerging developments associated with it are tracked. In light

of this, we feature as the third article a write-up on credit reference bureaus,

with particular emphasis on the legal framework governing their operations and

their role in fuelling economic growth.

Other articles featured in this edition are on integrated accounting and the

requirements for excellence in professional examinations.

These articles have been carefully selected to suit the diverse readership base

of the journal.

Enjoy your reading.


BiometricsAn emerging technology on security

Ernest Madara

Lecturer in IT,

KCA University

Definition of biometrics

Biometrics is defined as the science of using digital technology to verify a person’s identity based on physical and biological traits such as fingerprints and unique eye features. It can provide a high level of security while eliminating the need to remember multiple passwords and personal identification numbers (PINs).

Table 1. Comparison between biometrics and passwords

Source: http://www.ibm.com

Common biometric characteristics can be classified into physiological and behavioural biometrics.

Biometrics PasswordsInternal representation Features (Constant size

features vs. variable size features from signal)

Hash of the password string

Size Usually about 100 bytes or more

Typically 6-8 alphanumeric characters

Data input Constant varying Always the same

Match algorithm Inexact, fuzzy, never 100% Exact 100%

Non-repudiation Yes (mostly) No

Revocability No Yes (easily)

KASNEB Newsline, Issue No. 2 April - June 2013 April - June 2013 KASNEB Newsline, Issue No. 24 5

Biometrics

Table 2: Classification of biometric modalities

Physiological Behavioural

Fingerprint, face, iris, retina, voice, vein pattern, palmprint, hand geometry, DNA, facial, thermograms, body odour, fingernail bed, brainwave pattern, biodynamic signature, utoacoustic emissions, ear shape, skin spectrography

Handwritten signature, keystroke dynamics, gait, handgrip dynamics, mouse dynamics, lips dynamics

Table 3 : Strengths and weaknesses of biometric modalities

Biometric Strengths Weaknesses Suitable application

Finger verification Very stable over time Uniqueness

Potential user resistanceRequires user training

Information System (IS) access controlWork station access controlPhysical access controlAutomated teller machines (ATMs)Automotive access

Hand geometry

Small templateLow failure to enrollUnaffected by skin condition

Size of devicePhysical contact required\juvenile finger growth

IS access controlPhysical access controlTime attendance

Voice verification Good user acceptanceLow training

Unstable over timeChanges with time

Mobile phonesTelephone banking

Retina scanning Stable over timeUniqueness

Potential user resistanceRequires user trainingDependent on a single vendor technology

Physical access controlATM and airline ticketing

Signature verification High user acceptanceUnstable over timeChanges over timeEnrolment takes long

Portable devicesStylus inputApplicable where a wet signature would be used

Facial recognition Universally present

Cannot distinguish between identical siblingsReligious or cultural prohibitions

Physical access control

Source: (Giesing, 2003)

APPLICATIONS OF BIOMETRIC TECHNOLOGY

Biometric technology is one area that no segment of the information technology (IT) industry can afford to ignore, it provides security benefits across the spectrum, from IT vendors to end users, and from security system developers to security system users. All these industry sectors must evaluate the costs and benefits of

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Biometrics

implementing such security measures. Every biometric system has its limitations. Therefore, identification based on multiple biometrics is an emerging trend as multimode biometrics can provide a more balanced solution to the security multimode systems as they involve the use of more than one biometric system.

The biometric systems not only allow verification of a claimed user’s identity but also produce a probability estimate of the previously unknown identity of the client from the database of known users. The computational requirements in terms of computing power are considerably higher in identification than in verification mode because the feature has to be compared to every single template stored in the database and not just the one of the claimed identity.

Biometric devices can be adjusted to favour security or user convenience and the cost constraints within a given application and environment.

Table 4: Comparison of leading biometric technologies

BIOMETRIC SYSTEM COMPONENTS

Any biometric system is basically made of the following components:

(i) Portal. Its purpose is to protect some assets. An example of a portal is the gate at an entrance of a building. If the user has been successfully

authenticated and is authorised to access an object then access is granted.

(ii) Central controlling unit receives the authentication request, controls the biometric authentication process and returns the result of user authentication.

(iii) Input device. The aim of the input device is biometric data acquisition. During the acquisition process

Finger scan Fascial scan Hand scan Iris scan Voice recognition

Accuracy High Low Medium Very high Low to medium

Ease of use High Medium High Low to medium High

User acceptance Medium High (overt)Low (covert)

High Low to medium High

Privacy concerns High Very high (overt) Medium High Very low

CostPerformance

Low to mediumHigh

Low to mediumLow

MediumMedium

HighHigh

LowLow

Potential for circumventionDistinctiveness

Medium

High

High

Low

Low to medium

Medium

Very low

Low

High

Low

Barriers to universality

Susceptibility to changes in biometric

Worn ridges; hand or finer impairmentLow to medium

None

Medium to high

Hand impairment

Medium

Visual impairment

Low

Speech impairment

Low to medium

Susceptibility to changes in the environment

Low High Very low Low Medium to high

If you don't pay us two million dollars by tomorrow, we will kill you

Get sample of speech

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user’s liveness and quality of the sample may be verified.

(iv) Feature extraction module processes the biometric data. The output of the module is a set of extracted features suitable for the matching algorithm. During the feature extraction process, the module may also evaluate quality of the input biometric data.

(v) Storage of biometric templates. This will typically be some kind of a database.

(vi) The biometric matching algorithm compares the current biometric features with the stored template.

The limitations of unimodal systems include:

• Non-universality • Noise in sensed data • Reliability of the sensor used • Limited discriminability• Upper bound in performance • Lack of permanence • Spoofing attacks

SECURITY IN BIOMETRICS

A number of studies have analysed the likelihood of such security breaches and potential approaches to counter these vulnerabilities. The general analysis of a biometric system for vulnerability assessment determines the extent to which an impostor can compromise the security offered by the biometric system. While many of these attacks are applicable to any information system, the attacks using fake biometric and template modification are unique to biometrics systems.

These attacks are summarised below:

(i) Sensor level attack: A fake biometric sample can be presented at the sensor to gain access. A fake biometric can be generated by covertly acquiring the biometric characteristics of a genuine user, such as lifting fingerprint impressions from objects touched by persons.

(ii) Replay attack: It is possible for an adversary to intercept or acquire a digital copy of the stored biometric sample and replay this signal bypassing the biometric sensor.

(iii) Trojan Horse attack: The feature extractor can be replaced by a program, which generates the desired feature set.

(iv) Spoofing the features: The feature vectors generated from the biometric samples are replaced by the set of synthetically generated (fake) features.

Figure 1: components of biometric control systems

INPUTDEVICE PORTAL

STORAGE

FEATUREEXTRACTION

MATCHINGALGORITHM

CENTRALCONTROLLING

UNIT

2

3

4

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1

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Sample

Raw

Processed

TemplatedataDatabase

Template

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Template processingalgorithm

Template comparisonalgorithm

Image capture

Image processing

Feature extraction

Biometrics


(v) Attack on matcher: The matcher can also be subjected to a Trojan horse attack that always produces high (or low) match scores irrespective of which user presents the biometric at the sensor.

(vi) Attack on template: The template generated during the user

communication channel can be intercepted for malicious reasons and then modified and inserted back into the system.

(viii) Attack on decision module: The final decision generated by the biometric system can be overridden by a Trojan Horse program.

Security and privacy

There has to be a trade-off between security and privacy

Security has been defined as an “absence of threats to acquired values” or a “low probability of damage to acquired values.” A distinction is often drawn between objective and subjective security. Objective security refers to the low probability of damage, while subjective security refers to the feeling of security, or the absence of fear that acquired values are threatened. The nature and moral significance of “privacy” are difficult questions that have attracted significant philosophical attention.

enrolment/registration can be either locally stored or at some central location. This type of attack can either modify the stored template or replace it with a new template.

(vii) Attack on communication channel: The data being transferred through a

Figure 3: Factors affecting performance of biometric systems

Figure 2: Biometric authentication system attacks

StoredTemplates

BiometricSensor

FeatureExtractor Decision

Modify templatesin database

Override finaldecision

Override finalmatcher

Synthesisedfeature vector

Override featureextractor

Attacking thechannel

Reply stored signal

Fakebiometric

Application(e-banking, ATM)

Matcher

Biometric Factors causing errorsAll Template aging as a result of age, gender, other factors

Fingerprint Degradation of fingerprints caused by occupation, age, trauma

Face Environmental factors such as lighting, background, contrast, pose,

movement of subject, glasses

Iris Positioning, eye angle, glasses

Voice Illness, age, quality of communication system

Hand Injury, trauma to hand

Biometrics

Conclusion

The increased utilisation of biometrics technology in the past few years has contributed to a strong growth pattern as the technology is used in a variety of facilities. Due to media exposure, familiarity with technology will continue to increase proportionately, which will result in an increased curiosity about biometrics technology. Thus, implementing this technology will provide the public with many and varied opportunities to work with the new technology, learn about it and become informed. As well, it will result in providing those interested in a career in technology with a broad range of knowledge and enable them to pursue specialisations in biometrics.

IMAGE MATCHES FACE

Biometrics

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KASNEB Newsline, Issue No. 2 April - June 201310

Introduction The business society today is faced with lots of challenges mostly

attributed to the rapid changes in the market environment. This has partly been due to the introduction and the use of more sophisticated technologies which link businesses through electronic systems. A common example is the use of mobile phones which has gone beyond its imaginary line of communication and data transfer to other sectors like banking. With a mobile phone, one can now call, send and receive data, surf the internet, capture videos, photos, record conversations and undertake many other activities.

With proper technology in place, we have seen changes in productivity, shifts in demand and supply, people being able to share knowledge and information, and it has made it easier for innovation and new inventions through research and analytical work.

In the face of such challenges, most organisations would put in place a team commonly known as a task force, and bestow in them the mandate to come up with a solution to the challenges facing the entity, or come up with preventive measures or ideas that would generate new revenues and add value to the business, or create a healthy competition in the market place. In so doing, the entity would gather intelligence in

Business Intelligence

Fredrick NyunjaOperations Manager

K-REP BankNakuru


form of data, analyse it and come up with a practical solution that would generate a competitive advantage.

Business intelligence is all about value creation in the business enterprise. It is therefore of vital importance for every organisation to have a business intelligence analyst to assist the management in making decisions and strategies with regard to the competitive market.

Definition and overview of business intelligence

This is the process of acquiring high quality information about a particular subject matter being researched on, to enable individuals analyse the information and draw conclusions or make assumptions.

Others define business intelligence as the use of technology to collect and effectively use the information to improve business performance.

The world today is viewed by many as being in an information age. Information is important as

being driven by an accurate and good timing of information. Information in this era is used as a strategic asset which can assist the management change the face of an enterprise and survive even the toughest economic and market conditions. This is where sharp entrepreneurs rip the profits, as they get more information of value and invest based on the strategy driving the business at the time.

External

Internal information sources

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BUSINESSINTELLIGENCESUPPLIES CUSTOMERS

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it can be used to give leads to untapped business opportunities. Business intelligence will take into consideration the organisations' processes, technologies in place that can be manipulated and applications to analyse data and business processes in order to come up with value added outcomes. The business environment today is therefore



A business unit may create value by:

• Allocating resources well in order to achieve the maximum returns

• Reducing costs to an acceptable level as portrayed by the senior management

• Increasing productivity • Innovation and the identification

of opportunities that would put the business in a competitive edge in the market

• Improving the quality of its products and services

• Improving the efficiency and effectiveness of its operations.It is important that data is

collected from within the enterprise for the purpose of internal analysis and performance measures. Data may also be collected from within the industry and competitors for the purpose of benchmarking, comparisons and performance review.

This data may be critical in providing statistical leads in business demographics, internal account performance or individual account performance, business

performance, identification and management of risks. Further to this, the internally sourced data is cheap and easily accessible to the analyst and management.

Organisations may develop their own systems or purchase a customised business intelligence software application in an endeavour to generate intelligent reports. The data sourced from such software is easily transformed into a user friendly interface to be implemented by the end user in decision making.

In the process of adding value using business intelligence, the enterprise should put much emphasis on information and the

by the business community and governments to spur economic growth in different sectors. To do so most Governments, in particular the Government of Kenya has empowered small and medium enterprises (SMEs) by providing a conducive environment for conducting business, access to information through networking (using fiber optic cables) and also extending financial resources (Youth Fund and Women Enterprise Fund) to boost entrepreneurship and subsequently spur economic growth as well as create employment opportunities to the Kenyan population.

customer satisfaction through the provision of better services and products that add value. The enterprises can also change focus from product to customer centric approach depending on the strategic plan of the business.

I n f o r m a t i o n technology is one tool used today

MakingDecisions

Data PresentationsVisualisation techniques

Data MiningInformation discovery

Data ExplorationStatistical analysis, querrying and reporting

Data warehouses/Data MartsOn-Line Analytical Processing (OLAP)

Data SourcesPaper, files, information providers, database systems

Increasing potential to support business decisions

End user

Business analyst

Data analyst

DBA

Prediction

Analysis

Reporting

Connectivity

Data transformation (ETL)

Performance monitoring

DataData

Data



But as the SMEs grow, their businesses are affected by a number of technical and economic challenges hence the need to change the business game plan (strategic plan). Some of the factors include stiff competition, technological innovations, globalisation, mergers and acquisitions, deregistration, changes in cost and fluctuation of raw materials, the emergence of new markets and so on. Consumers are

now educated and well informed. This therefore gives them the power of choice [a lot of substitute goods are in the market] and control in the game plan.

Through thorough business intelligence and research by analysts, the enterprises are therefore sometimes forced to study market trend and what the competitors are offering, create new revenue streams, enter new territorial

markets, and reduce production and administration costs in order to realign their operations.

Elements of business intelligence

An understanding of business intelligence requires one to have an all round knowledge ranging from the source of the information, business strategic plan in place and the entire value chain.

Business intelligence is a combination of information technology, human capital and organisation processes.

It should focus on the interaction between Information Technology (IT), business processes, human competencies, the current circumstances affecting the enterprise and cooperation in the entire enterprise.

Human competencies refer to the persons who have the ability to retrieve and deliver the right information. The organisation



needs to marshal its troops - People who are focused, self driven and have a common purpose for the organisation. A Chinese warrior [Sun Tzu] taught us to win the battle in the mind before the fight. By winning, it means all the troops [team] should be mentally prepared, well skilled, be able to work ‘SMART’ and strategically towards archiving a common goal for the enterprise.

Information technology plays a critical role in data collection and analysis. The users should be capable of interacting with the data and storing it and manipulating it before sending it back to the intended end-user who will use it for decision making.

The business processes would depend on the nature of the organisation for instance, for a manufacturing concern, the process may be optimisation of its inventory system.

It would require a substantial investment to set up an information system which may be in the form of human capital (information technology experts) and a data warehouse (for storing information).

Applications of business intelligence • As a strategic tool: Business

intelligence can be applied strategically as well as tactically. Strategically, it can assist management to identify trends and opportunities for growth. It can also be applied tactically within departments to implement changes that create value to the institution.

• Extraction of audit evidence: Information system auditors can apply computer assisted audit techniques (CAAT‘s) to obtain reliable, relevant and sufficient audit evidence required to achieve audit objectives. Audit findings should be supported by appropriate analysis and interpretation of the evidence by the information system auditor.

• Monitoring tool: Business intelligence can also be used to monitor an enterprise’s performance against its key performance indicators.

• Generation of reports: It can be used to generate strategic reports to the senior management that can be used for decision making and hence give strategic direction to the enterprise.

• Quality improvement: Analysts can use business intelligence to come up with ways of improving the quality of the final product or service.The aim of business intelligence

is to come up with solutions that would add value to the final product or service or come up with remedies to the challenges being faced by the enterprise.

Implementation of business intelligenceIn an endeavour to implement business intelligence successfully, the enterprise should follow the steps below:

• Set the goals to be achieved by the business intelligence system. The management should have a reason as to why they are setting the business intelligence unit.

• Conduct a strengths, weaknesses, opportunities and threats (SWOT) analysis of the enterprise.

• Identify opportunities in the enterprise where business intelligence will improve performance or add value.

• Apply the business intelligence across the enterprise. Focus should be placed on ‘who’ will benefit from the program.

• Gather and share information with the right people across the enterprise. Information gathering may begin by brainstorming across

BUSINESSSOLUTIONS

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departments. The information should be used by business analysts to extract useful data to be used in management decision making.

• Evaluate the alternatives, if any, based on the cost/benefit criteria to assess ideas collected. Preference is given to those ideas with the greatest returns.

Importance of business intelligence • Decision making: Business

environments become complex and therefore investors and other stakeholders need sufficient, reliable and accurate

information before making independent decisions. Information provided by business analysts may assist the management in understanding better the value of their decisions.

• Sharing of knowledge is improved between departments and individuals across the enterprise.

• It also acts as a source of information to the management team. The information obtained may be used by the enterprise in managing costs and performance in an enterprise.

• Business intelligence can also help an enterprise improve its internal processes and products.

• It unlocks information and shares it across the business enterprise hence empowering management and end-users. Business intelligence draws information from various sources in bulk, integrates them and extracts only those elements that are useful for decision making.

• It can be used to identify those profitable units, products or individual customers in the business enterprise.

• Quality improvement. This can be achieved through improved customer service by identifying and responding to customer needs or complaints as quickly as possible. An enterprise can do this by putting more focus on its core competencies by knowing how to handle its internal processes and anticipate the customer needs.

• It helps in reducing risks hence minimising losses by evaluating and understanding risk exposures associated with the enterprise.

Conclusion The application of business

intelligence in finding solutions for enterprises has helped most firms adapt to the changes in the market that would otherwise have adverse effects on their enterprises.

For enterprises to achieve maximum outcome from the business intelligence, they must have a continuous monitoring process put in place that would trigger alerts to the management (should there be any abnormal effects) for quick decision making processes to reverse the trend or utilise the opportunity.

When you two have finished arguing your opinions, I actually have data!



Introduction

In the past, borrowers had to give lenders proof of their creditworthiness before they could borrow money. This involved face- to-face meetings, visits and a lot of paperwork which took a lot of time and effort. Due to information asymmetry, lenders were never sure that borrowers were providing all the

Credit Management The role of credit reference bureaus

information needed to make a good decision. As a result, they often lent money to unsuitable borrowers and sometimes refused to lend to creditworthy people.

However, today’s lending practices have changed and embraced technological innovations in the assessment of credit worthiness. Credit referencing is one of the tools that have been developed to provide credible and fast results on credit scoring. These services are readily available from credit reference bureaus (CRBs).

A CRB is an independent organisation that holds information about economic entities (consumers, businesses), to help lenders decide whether to give credit. They are information brokers, providing creditors with reliable, relevant and comprehensive data on the repayment habits and current debt of their credit applicants. Under reciprocity agreements, credit

Mutui PeterCredit Risk Analyst

BA (Econ), MA (Econ - ongoing)CPA-K, CCP-K, CIA


bureaus obtain data from creditors and other sources, consolidate and package information into individual reports, and distribute it to creditors for a fee.

Some important terms

• Credit - Refers to the borrowing and lending of money. The ‘price’ of credit is set as an ‘interest rate’, which is the fee the borrower pays to the lender.

• Credit scoring - Assessment of the ability to meet financial commitments particularly to re-pay debt.

• Credit report (or file) - Information a credit reference agency holds about a person or business. It details credit history, identification information, credit accounts and loans, bankruptcies and late payments, and recent inquiries.

• Negative information - Any adverse information relating to a customer. Examples include proven cases of fraud, forgeries, cheque kiting, false declarations and statements, receiverships, bankruptcies, liquidations, false securities among others.

• Footprints - These are marks left on the database each time a search is made, detailing

which company has accessed the database, when and why. These ‘foot prints’ are important because they allow lenders to identify ‘abnormal activity’.

The legal framework of CRBs

Many countries in the world have CRBs that work in similar ways. However, they are all essentially different. Some are publicly owned monopolies while others are owned by banks. Some countries only allow public information (such as

court judgements) to be shared. Some allow both public and private information to be shared, but they restrict private information to credit account ‘defaults’. (A default is an account that the consumer has broken the terms).

In terms of the information held by CRBs, it comes from several sources but falls into two main categories – public information and credit account information. These are explained below.

(a) Public informationThe public information includes

but not limited to:

You are a key part of the credit system. Your credit and loan

accounts reported to the bureaus

The credit bureaus collect, record and distribute information about

your credit habits

Account information

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Credit reports & scores

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YOU

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Creditors requests data from the bureaus about you when

deciding what rates to offer you

Credit reports & scores

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Credit Management


• Information from the full applicants roll/register. CRBs can acquire copies of the full applicants roll and make this available to lenders for certain limited purposes such as assessing credit applications, identifying customers and helping to prevent fraud.

• Court judgements. • Bankruptcies, individual

voluntary arrangements and administration orders.

(b) Credit account information

In many countries, the major lending companies have agreed to share details of their customers’ credit agreements. This means that when someone applies for credit, the lender can check if they have repaid other lenders in the recent past or are repaying current credit agreements. They can also check how much the consumer already owes to other lenders and how they are managing these existing credit agreements, to help them decide if the consumer can afford to take on further credit.

For the lenders to see each other’s information, they store information about their customers

with CRBs. The CRBs act as a go-between in the sharing process but do not own the information. However, the sharing of information must be consented by the customer. This occurs when consumers give the lender permission to share information with other lenders through the credit reference agencies; and it includes details about the application and any credit the lender grants.

As a result, the credit account information is simply a copy of the information that all the different lenders hold. These lenders update the database on a regular basis.

On financial connection, the credit report should only include: • Financial information about the

person. • The name of anyone that the

borrower may have a financial connection with (but not any financial information about that person).

• The date and source of the financial connection.

However, a person will be treated as having a financial connection to someone else where a lender informs the CRB that:

• An application for credit has been made in joint names.

• A bank account or other credit product has been opened in joint names.

• The borrower discloses to the CRB a financial linkage.

Credit reference services in Kenya

The operatinalisation of the Banking (Credit Reference Bureau) Regulations, 2008 on 2 February 2009 paved way for the establishment of CRBs in Kenya. Since then the Central Bank of Kenya licensed two CRBs, that is Credit Reference Bureau Africa Limited and Metropol Credit Reference Bureau Limited. Both bureaus have their Kenyan offices located in Nairobi.

Today, all commercial banks and the Deposit Protection Fund Board (DPFB) share negative credit information on their customers with licensed CRBs. In the year 2011, provisions were further introduced in respective legislation governing micro-finance institutions (MFIs) and SACCOs to introduce sharing of credit information, although relevant regulations are yet to be prepared.

Credit bureau monitor

Monitor reply queue

Credit request queue Credit reply queue

Client Banks Controlbus queue

Managementconsole

Test datagenerator

Test dataverifier

CREDIT BUREAU

LOANBROKER

Credit Management


Activities of CRBs in Kenya The activities of CRBs in Kenya

are contained in the Banking (Credit Reference Bureau) Regulations, 2008. The bureaus may also engage in the following activities:

(i) Collection, collation, storage, management, evaluation, updating and dissemination of customer information as provided by the regulations.

(ii) Other services including, but not limited to:

• Creditworthiness assessments, credit scoring and portfolio risk management tools as reviewed and approved by the Central Bank of Kenya (CBK).

• Verification of credit application information and credit application processing.

• Cross-default notices or “watch services”.

• Data storage and statistical research.

• Debtor and guarantor tracing services with respect to funds lawfully due.

• The sale of literature, software and other material related to its activities.

• Collateral registry services.• Employment, income, address

and asset verification services.• Fraud prevention and detection.• Such other activities as may be

approved by the Central Bank in writing.

While CRBs can undertake a number of activities, it is important to note the following points.

A CRB:• Does not make lending

decisions. This is a preserve of

the lenders who may even lend to borrowers with a poor credit history. However, lending to a person who was previously listed as a defaulter should be done with extreme caution.

• Is not told which applications are successful or refused, and does not know why a consumer was refused credit.

• Does not hold a ‘blacklist’ of people who should not be given credit.

• Holds information that usually helps people get credit.

Recourse for denied credit facility

On the decision of whether to lend or not, it should be known that there is no automatic right to access credit. However, the law permits the right to demand access to your CRBs. In circumstances when the borrower feels that credit has been denied unfairly, the borrower can ask the lender to explain the main reason for denial as well as whether the CRB’s information was the reason for the decision.

A borrower has the right to write to the CRB and ask for a copy of the credit reference file. The CRB should be provided with the following details: • Your full name. • Any other names you have used

or been known by in the last six years, such as your maiden name.

• Your full address including postcode.

• Any other addresses you have lived at in the last six years.

• Your date of birth.

Borrowers disputing the facts of a transaction in their credit report or who may not be satisfied after the mandatory investigation by the CRB with the data provider, may petition the CBK in writing to make a final determination of the dispute. Borrowers who appeal undertake to accept the determination of the CBK as final. The CBK may assign arbitration committees to review on its behalf such final appeals by borrowers.

Benefits of credit reference services

“If you don’t pay by ……… you will be blacklisted in the credit reference bureau” this is a common statement being used by most debt recovery staffs in most organisations. A CRB has been painted as a monster that has no good to the economy other

Credit Management


than to threaten defaulters to pay their bills and debts. This kind of thinking is retrogressive and will only do harm to the economy.

CRBs benefit both the lender and the borrower and it is a tool that can bring benefits to the world economy. In developing countries, the CRB concept is very new and has not been widely accepted but with an increase in defaulters, it is gaining momentum though at a slow pace.

The benefits of a CRB should be a win-win situation that enables lenders to access good customers and also for customers with a good credit history to obtain credit at better terms. The benefits that accrue from a CRB include:

• Through collecting, managing and disseminating customer information, CRBs help lenders make faster and more accurate credit decisions.

• CRBs enable lenders to lend to more and better risk clients (avoiding bad debts) and to determine better (and lower) bad loan spreads that they need to cover expected losses of credit to good payers.

• CRBs reduce the borrowing cost by forcing creditors to be more competitive for good borrowers. Those lower costs for good credit risks motivate borrowers to be more careful with the repayment.

• CRBs reduce moral hazard by developing a credit culture where borrowers become aware that the credit market is keen on their credit history and rewards or punishes them accordingly.

• Good credit scores can ease access to more credit, which offer borrowers opportunity to access loans without restrictive collateral requirements. The CRBs have opened up the lending environment and even facilitated the issuance of cheaper loans to borrowers.

• Improved revenue collection. Recent studies indicate that there has been a strong positive response from borrowers who are in default.

Challenges facing CRBs

Among the obstacles that have faced CRBs in Kenya since inception include:

• Low levels of data sharing among formal sector financial institutions. The financial sector deepening (FSD) progressive report 2008-2011 indicated that information sharing was less than 5% for the consumers who had formal sector credit agreements.

• The current regulations prevent the information received from banks from being shared with any other party. This removes the incentive for such entities to contribute their own data, or to allow banks access their data. This will have a negative impact on banks’ credit risk management, as well as on the expansion of credit information sharing.

• Increasing public resistance against information sharing as only negative information is shared. This resistance has been contributed by the fact that some borrowers have been refused credit on the basis that they have a ‘negative credit record’.

• Successful litigation against information sharing based on privacy considerations.

Credit Management


• Low level of participation in querying the data base. This is due to the lack of automation and sophistication in the credit appraisal systems and methodology applied by many organisations.

• The credit referencing system could be viewed as a “debt collection mechanism”, which is likely to have negative consequences for the manner in which it is perceived.

The future of CRBs

With the passing of a number of amendments to legislation governing the operations of CRBs, the future looks bright. For instance, the amendment to The Finance Bill 2012/2013 mandates banks to share both negative and positive information. This will be a big reprieve to good borrowers as they will be able to benefit from lower interest rates, easier terms and/or less collateral. Having said that, it is worth noting that the concept of CRBs is still new in Kenya. To foster faster growth, it is important that all the stakeholders continue to provide solutions to the growth of the CRBs in Kenya.

The CRBs should spearhead consumer education programmes that are committed to raising public

awareness of the information that they hold, how lenders use it and the rights people have in relation to this information. Such campaigns may come in the form of; press interviews, talk shows, involvement in financial literacy projects and offering leaflets on credit reference free of charge. The CRBs should also provide a free credit report at least once a year for all customers held in their data base as required by law. In addition, the existing CRBs should make it easy to access their services especially for people residing outside Nairobi.

Customers’ information held by financial institutions and other CRB subscribers should be constantly reviewed. There is need to ensure that accurate and updated information is relayed to CRBs. This will prevent customers instituting unnecessary legal proceedings that could be as a result of inaccurate and obsolete information.

All customers should be encouraged to make full and truthful disclosure of facts and information in applications and contracts with third parties when seeking credit of any nature. Attempts to provide false information for any gain whatsoever my result in negative information that is likely to taint one’s character.

The law governing information sharing should be amended to permit cross-industry information sharing. This would substantially improve the value of the credit referencing system in respect of prevention of defaults as well as in the prevention of over-indebtedness. It would also enable the credit referencing system to make a positive contribution to financial inclusion.

Conclusion

CRBs have provided a convenient platform for information sharing by many financial institutions. They not only provide necessary information for credit assessment, but also allow borrowers to take their credit history from one financial institution to another, thereby making lending markets more competitive and, in the end, more affordable.

They assist in making credit accessible to more people, and enabling lenders and businesses reduce risk and fraud. Sharing of information between financial institutions in respect of customer credit behaviour, therefore, has a positive economic impact.

Credit Management

It pays to advertise in the

Contact the Marketing and Publications Section through:P.O. Box 41362 - 00100 Nairobi Tel: 254(020) 2712640 / 2712828 Cellphone: 0722-201214/0734-600624 E-mail: [email protected] or [email protected]

KASNEB Newsline is produced four times in a year. Over 50,000 copies are printed for each issue. The Newsline is distributed free of charge within and outside Kenya through secondary schools, Kenya National Library Services branches, training institutions, universities, government ministries, Kenya Embassies and High Commissions.

The Newsline is also available on the KASNEB website. It is one of the most widely read journals in Kenya. Spruce up your business by advertising in the KASNEB Newsline. Call us, book space and watch your business grow.

July - September 2012 KASNEB Newsline, Issue No. 3 1

NewslineThe Professional Journal of KASNEB Issue No. 3 July - September 2012

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Enterprise Risk Management

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October - December 2012 KASNEB Newsline, Issue No. 4 i

NewslineThe Professional Journal of KASNEB Issue No. 4 October - December 2012

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Strategic Business Units

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KASNEB Newsline, Issue No. 1 January - March 2013 January - March 2013 KASNEB Newsline, Issue No. 1PB 1

NewslineThe Professional Journal of KASNEB Issue No. 1 January - March 2013

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ETHICS IN INFORMATION SYSTEMS

KASNEB Newsline, Issue No. 2 April - June 2013 April - June 2013 KASNEB Newsline, Issue No. 2PB i

NewslineThe Professional Journal of KASNEB Issue No. 2 April - June 2013

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BIOMETRICS

NewslineKASNEB


Tuition block College buses

Computer laboratory

Students' excursion trip to Mombasa

Students' excursion trip to Maasai Mara

Fully accredited by KASNEB No. KAS/F/028

DEGREE PROGRAMMES

DEGREE PROGRAMMES DURATION FEE PER SEMESTER 2013 (Sh.)

Bachelor of Commerce (Bcom)(JKUAT) 3 years (8 semesters)

48,500

Bachelor of Science in Information Technology (Bsc IT)(JKUAT) 3 years (8 semesters)

48,500

Bachelor of Education – Arts (Secondary)/ECDE/ Primary Option (LU) 2 ½ years (8 semesters)

47,500/33000 (SB)/39,250(wk)

DIPLOMA PROGRAMMES DURATION FEE PER SEMESTER

Diploma in Law (IU) 2 years 22,500

Diploma in Information Technology (IU) 2 years 22,500

Diploma in Information Technology (JKUAT) 2 years 31,500

Diploma in Information Technology (KNEC) 2 years 14,000

Diploma in Information Science (Library) (KNEC) 2 years 14,000

Diploma in Archives & Record Management (IU) 1 & 3 months 22,500

Diploma in Education Arts Secondary/Primary Option (LU) 2 years 29,500/25,000(SB)/27,250(wk)

Diploma in Early Childhood Education (ECDE) (LU) 2 years 17,500/11,500(SB)

Diploma in ECDE(KNEC) 2 years 17,500/11,500(SB)

Diploma in Teacher Education (KNEC) 3 years 17,500/11,500(SB)

Diploma in Secretarial Studies (KNEC) 2 years 22,500

Diploma in Special Needs Education (S.N.E) (KNEC) 2 years 17,500/11,500(SB)

Diploma in Secretarial Studies (KNEC) 2 years 22,500

Diploma in Business & Office Management (IU) 2 years 22,500

Diploma in Business Management ABE KNEC

5 months/2 years

15,00015,000

Diploma in Business Administration (JKUAT) 2 years 31,500

Diploma in procurement management (JKUAT/KNEC) 2 years 15,000

Diploma in Sales and Marketing (ICM/KNEC) 5 months 15,000

Diploma in Human Resource Management KNEC ABE level 4

ABE level 5 ABE level 6

2 years5 months1 year5 months

15,00015,00015,00017,500

Diploma in Business Management ABE level 4 ABE level 5 ABE level 6

1 year1 year5 months

15,00015,00017,500

Diploma in Marketing Management ABE level 4 ABE level 5

6 months1 year

15,00015,000

Diploma in Community Development and Social Work (KNEC) 1 ½ 15,000

Diploma in Human Resource Management KNEC ABE level 4 ABE level 5 ABE level 6

11/25 months1 year5 months

15,000


TRAINERS IN ACCOUNTANCYP.O Box 956-60100 Embu Kenya Tel:068 30247, 0721152709, 30120, 30961 Email: [email protected] or [email protected], Website: www.embucollege.com or www.embucollege.ac.ke Location: 200m from Embu County Council offices/Embu Law Courts

KASNEB COURSES DURATION FEES SINGLE SUBJECT

BLOCK RELEASE

SINGLE SUBJECT FOR BLOCK RELEASE

ATC I 5 months 9,500 2,20029/4/2013-26/5/2013

2,250

ATC II 5 months 9,500 2,200 2,250

CPA & CPS Sections 1 & 2 5 months 9,500 3,650 2,250

CPA & CPS Sections 3 & 4 5 months 10,500 4,000 6/5/2013-1/6/2013

2,500

CPA & CPS Sections 5 & 6 5 months 11,500 4,000 2,750

Certified Information Communication Technologists (CICT) Sections 1- 6 1 ½ - 3 years 9,500

Information Communication Technology Technicians (ICTT) 1 year 9,500

• Next semester commenced on 11th June 2013 for CPA Sections 1 & 2 and ATC levels I & II and 17th June 2013 for CPA Sections 3 to 6.

• We congratulate our June/July – November/December 2012 group for posting exemplary results in November/December 2012 KASNEB exams

• We would specifically recognise outstanding performance of 100% in the following subjects;

Economics, Cost Accounting, Auditing and Assurance, Management information Systems, Financial Management, Quantitative Analysis and Advanced Auditing and Assurance.

May intake classes commenced on 7th May 2013

April 2013 School based commenced on 13th April 2013

NB/ABE classes for new students commenced on 11th June 2013

Diploma in Community Development and Social work(KNEC) 11/2 15,000

Higher Diploma in Business management (ABE/KNEC) 1 year 15,000

Higher Diploma in Human resource management (ABE/KNEC) 1 year 15,000

Higher Diploma in Sales & Marketing (ICM) 1 year 15,000

Graduate Diploma in Sales & Marketing (ICM) 5 months 17,500

Graduate Diploma in Human resource management (ABE) 5 months 17,500

Graduate Diploma in Business management (ABE) 5 months 17,500

CERTIFICATE COURSES DURATION FEE PER TERM

Secretarial Studies (KNEC) 1 ½ years 10,000

Certificate in Information Science (Library) (KNEC) 1 year 14,000

Certificate in Archives & record Management (IU) 6 months 22,500

Certificate in ECDE (KNEC) 1 year 17,500/11,500 (SB)

Certificate in Information Technology (IU) 4 months 22,500

Certificate in Information Technology (JKUAT) 3 months 31,500

Certificate in Computer engineering 4 months 14,000

Primary Teacher Education (KNEC) 2 years 17,500/11,500

Certificate in community Development and social work 1 year 17,500

Certificate in procurement Management 1 year 15,000

Certificate in Human Resource management 1 year 15,000

Certificate in Business management 1 year 15,000

Microsoft Office Suite ( 9 packages) 2 months 2,700

Bridging course in mathematics (JKUAT) 4 months 25,000

Why join our Campus

� Fully accredited by KASNEB � Well equipped library and free

internet services to students � Competent & experienced

lecturers � Variety of Student activities,

Clubs and Societies � High pass rate in examinations � Facilities include lecture halls,

computer labs and hostels � Transport is available within a

radius of 20 kilometres � Friendly and serene

environment � Free branded corporate wear � KNUT members enjoy 15%

discount

Library

Quiet atmosphere

Reception

Trainers in Accountancy

Pinnacle Business School

VISION

To be a leading business training and consultancy firm and a choice provider of quality tertiary and executive

training services.

AWAY FROM BOOKSSampling the beauty

of Kenya

LECTURES IN PROGRESSPlanting the seeds of knowledge

MISSION

To provide the highest quality training in accountancy and business that is relevant to the market and to students and to provide the highest quality accountancy and financial management consultancy to our clients while keeping and enhancing our position as a leading training centre in the

country and in the region.

Guilders Building, Moi Avenue

AWAY FROM BOOKSSampling the beauty

of Kenya

1st Floor, G

uilders Centre , M

oi Avenue, Nairobi (n

ext to Bookpoint B

ookshop)

P. O. B

ox 3963 - 0

0100 Nairobi, Kenya

Landline: 020 - 2222190, 3585400/1 M

obile: 0721471200

Website: w

ww. pinnaclebizs

chool.com

Email: info@pinnaclebizs

chool.com

LECTURES IN PROGRESSPlanting the seeds of knowledge

GRADUATION CEREMONYReaping the fruits of hard work

MISSION

To provide the highest quality training in accountancy and business that is relevant to the market and to students and to provide the highest quality accountancy and financial management consultancy to our clients while keeping and enhancing our position as a leading training centre in the

country and in the region.

Integrity and ex

cellence

CORE VALUES

Integrity: To display the highest level of integrity in all that we do.Excellence: To continually pursue excellence in the performance of our duties.Professionalism: To diligently and professionally conduct our business.


Introduction Integrated accounts refer to a single set of accounts which provides

both financial and cost accounting information. In this system, personal and impersonal accounts are maintained in the general ledger and cost accounting profits are similar to the financial accounting profits. There is therefore no need for reconciliation. The usual personal and real accounts are maintained but nominal accounts follow the principles of cost accounting system as follows:

• The stock control account (raw materials) records the materials purchased as a debit, and whatever quantity transferred to the work in progress is credited.

• The wages control account records the costs of direct labour incurred as debits and transfers to work in progress as credits.

• Production overhead account debits all indirect expenses, materials and labour incurred in the factory. The overheads absorbed to the production are credited and transferred to the work in progress account.

• The work in progress ledger account is used to record the cost of all jobs being undertaken by the firm, that is, all transfers from material (stock control) account, wages control account and the production overhead absorbed are debited in this account. On the credit side, transfers are made to the finished goods account.

• The finished goods account records the cost of finished goods transferred from the work in progress account as well as the administration overheads absorbed in the production for the period.

Integrated Accounts

James Wachira IrunguSenior Lecturer

Mwangaza CollegeNakuru

IA eliminates need for a lot of paperwork


• Cost of sales account records the cost of finished goods sold to customers and the cost of selling and distribution absorbed in the sales for the period. This account has no opening or closing balance since the whole cost for a period is written off against the sales (revenue) in the trading account.

Accounting Entries

(a) Raw materials

(i) Materials purchased Dr: Stock control accountCr: Creditors control account(If on credit) Dr: Stock control accountCr: Bank/cash account(if on cash or cheque)

(ii) Materials returned to suppliers Dr: Creditors control account Cr: Stock control account

(iii) Materials issued to production Dr: Work in progress account Cr: Stock control account

(iv) Indirect materials Dr: Production overhead account Cr: Stock control account

(b) Wages (labour expenses)

(i) Total wages paid Dr: Wages control account Cr: Bank/cash account

(ii) Accrued wages/unpaid at the end of the year Dr: Wages control account Cr: Expenses accrued account

(iii) Direct wages to production Dr: Work in progress account Cr: Wages control account

(iv) Indirect wages to production Dr: Production overhead account Cr: Wages control account

(v) Wages of administration staff Dr: Administration overhead account Cr: Wages control account

(vi) Wages and sales commission to the sales staff Dr: Selling and distribution overheads Cr: Wages control account

(c) Production overheads

(i) Production overheads paid Dr: Production overheads account Cr: Cash/bank account

(ii) Indirect materials Dr: Production overheads account Cr: Cash/bank account

(iii) Indirect wages Dr: Production overheads account Cr: Wages control account

(iv) Overheads absorbed (recovered)using an appropriate overhead adjustment rate Dr: Work in progress account Cr: Production overheads account

(v) Production overheads over absorbed (recovered) Dr: Production overheads account Cr: Profit and loss account (income statement) *it’s an income to the organisation.

(vi) Production overheads under absorbed (provision) Dr: Profit and loss account (income statement) Cr: Production overheads account *it’s an expense to the organisation.

(d) Work in progress

(i) Production costs incurred and absorbed Dr: Work in progress account Cr: Stock control account Cr: Wages account Cr: Production overheads account (ii) Transfer to finished goods Dr: Finished goods account Cr: Work in progress account

(e) Administration overheads

(i) Administration overheads paid Dr: Administration overheads account Cr: Bank/cash account

(ii) Administration overheads absorbed Dr: Finished goods control account Cr: Administration overheads account

(iii) Over absorbed administration overheads Dr: Administration overheads account Cr: Profit and loss account (income statement)

Integrated AccountsIA eliminates time wastage in data entry


IA eliminates need for two sets of records

(iv) Under absorbed administration overheads Dr: Profit and loss account (income statement) Cr: Administration overheads account

(f) Finished goods

(i) Transfer in from production Dr: Finished goods account Cr: Work in progress account

(ii) Administration overheads absorbed Dr: Finished goods account Cr: Administration overheads account

(iii) Finished goods sold Dr: Cost of sales account Cr: Finished goods account

(g) Selling and distribution overheads

(i) Selling and distribution overheads paid Dr: Selling and distribution overheads account Cr: Bank/cash account

(ii) Selling and distribution overheads absorbed Dr: Cost of sales account Cr: Selling and distribution overheads account

(iii) Over absorbed overheads Dr: Selling and distribution overheads account Cr: Profit and loss account (income statement)

(iv) Under absorbed overheads Dr: Profit and loss account (income statement) Cr: Selling and distribution overheads account

(h) Cost of goods sold

(i) Finished goods sold Dr: Cost of goods sold account Cr: Finished goods account

(ii) Selling and distribution overheads absorbed Dr: Cost of goods sold account Cr: Selling and distribution overheads account

(iii) Transfer to the income statement (trading account) Dr: Trading account Cr: Cost of goods sold account

NB: The statement of financial position is prepared in accordance with the international financial reporting

standards (IFRSs) and generally accepted accounting practices are upheld. The information to prepare it is obtained from the real accounts and the personal ledger accounts prepared.

ILLUSTRATION

The following summarised trial balance relates to Duncom Manufacturing Company Limited for the month of January 2013.

Sh. Sh.Land and buildings 500,000Plant, machinery and equipment

800,000

Provision for depreciation 200,000Raw materials stock 80,000Work in progress stock 40,000Finished goods stock 20,000Debtors 260,000Bank overdraft 50,000Share capital 1,100,000

Share premium 200,000Reserves/retained earnings 50,000Creditors 100,000

1,700,000 1,700,000 Additional information

(1) Transactions for the month of January 2013:Sh.

Cash received from debtors 190,000Cash paid to creditors 70,000Direct wages paid 30,000Administration staff salaries paid 20,000Indirect wages paid 15,000Selling staff salaries paid 15,000Cash paid to expenses of production 20,000Cash paid to expenses of administration 10,000Depreciation - plant and machinery 20,000 - office equipment 5,000Materials received and invoiced 50,000Materials issued to production from stores 40,000Materials issued to production maintenance 8,000

Integrated Accounts


Transfers from work in progress to finished goods

110,000

Sales 160,000Production cost of goods sold 112,000

(2) Production overheads are absorbed on the basis of 200% of direct wages.

(3) Administration overheads are absorbed on the basis of 50% of the production cost of goods sold.

(4) Selling and distribution overheads are 10% of sales.

Required

Prepare for the month of January 2013:(a) Integrated ledger accounts.(b) Income statement.(c) Statement of financial position as at 31 January 2013

Suggested solution

(a) Integrated ledger accountsRaw materials account

Sh. Sh.Bal. b/d 80,000 Work in progress 40,000Creditors 50,000 Production

overheads8,000

Bal. c/d 82,000

130,000 130,000

Work in progress accountSh. Sh.

Bal. b/d 40,000 Finished goods 110,000Raw materials 40,000 Bal. c/d 60,000Wages account 30,000Production overheads

60,000

170,000 170,000

Production overheads accountSh. Sh.

Bank/cash (wages)

15,000 Absorbed o/h(WIP)

60,000

Bank/cash (prodn. o/h)

20,000 Under absorption

3,000

Depreciation 20,000Raw materials 8,000

63,000 63,000

Finished goods accountSh. Sh.

Bal. b/d 20,000 Production cost of sales

112,000

WIP 110,000 Bal. c/d 18,000130,000 130,000

Administration account

Sh. Sh.Bank/cash 20,000 Absorbed o/h 56,000Bank (admin) 10,000Depreciation 5,000Over absorption 21,000

56,000 56,000 Selling and distribution account

Sh. Sh.

Bank/cash 15,000 Absorbed o/h 16,000

Overabsorbed 1,00016,000 16,000

Cost of sales account

Sh. Sh.Finished goods 112,000 Trading a/c 184,000Admin. O/h 56,000Selling and distr. 16,000

184,000 184,000

Integrated AccountsOne entry automatically updates other

modules and the general ledger


IA eliminates need need for reconciliation

Bank/cash accountSh. Sh.

Debtors 190,000 Bal. b/d 50,000Bal. c/d 40,000 Creditors 70,000

Direct wages 30,000Indirect wages 15,000Admin. wages 20,000Selling and distr. wages 15,000Production expenses 20,000Admin. expenses 10,000

230,000 230,000 Debtors account

Sh. Sh.

Bal. b/d 260,000 Bank/cash 190,000

Sales 160,000 Bal. c/d 230,000420,000 420,000

Creditors account

Sh. Sh.

Bank/cash 70,000 Bal. b/d 100,000

Bal. c/d 80,000 Raw materials 50,000150,000 150,000

Provision for depreciation account

Sh. Sh.

Bal. c/d 225,000 Bal. b/d 200,000

Plant 20,000Equipment 5,000

225,000 225,000 (b) Duncom manufacturing company limitedIncome statement for the month of January 2013

Sh. Sh.

Sales 160,000

Cost of sales (184,000)Gross loss (24,000)Add:Over absorbed overheads

-Administration 21,000-Selling and distribution 1,000

(2,000)Expenses

Underabsorbed production

overheads

(3,000)

(5,000)Retained earnings b/f 50,000Retained earnings c/f 45,000

(c) Duncom manufacturing company limited

Statement of financial position as at 31 January 2013Non-current assets

Cost Acc. Depre. N.B.V.Sh. Sh.

Land and buildings 500,000 - 500,000Plant, machinery and equipment

800,000 225,000 575,000

1,300,000 225,000 1,075,000

Current assetsInventory Sh.Raw materials 82,000Work in progress 60,000Finished goods 18,000Debtors 230,000

390,000

Current liabilities Sh.

Creditors 80,000Bank overdraft 40,000

120,000Net current assets 270,000Net assets 1,345,000

Financed by Sh.Share capital 1,100,000Share premium 200,000Retained earnings 45,000

1,345,000

Conclusion

To fully understand and apply integrated accounting, it is important that a student analyses each individual item of cost or financial accounting in a ledger and makes adjustments for productive activities throughout the manufacturing chain. Students are also advised to attempt as many practice questions as possible on this area before sitting for the examination.

Integrated Accounts


St. Georges House, 4th floor, Parliament Road (Opposite Professional Centre)P. O. Box 54340 - 00200, Nairobi, KenyaTel: 317872/2212753, Fax: 2211140Cell phone: 0720-100655/0736-336155Email: [email protected]: www.creditschoolmanagement.net

Kenya School of Credit Management (KSCM) is a specialised learning institution for professionals in credit management. Our mission is to promote excellence and professionalism in credit management for all credit managers who work or intend to work in the credit department of different organisations.

The qualifications are a MUST for all:• Credit managers • Risk managers• Credit controllers• Credit card officers• Debt managers• Co-operative officers• Microfinance officers• Leasing officers• Asset finance officers• Hire purchase officers• Mortgage managers • Credit officers • Account managers• Debt collectors • Sales ledger administrators• All in the lending sector

Enroll now and reap the benefits.

KENYA SCHOOL OF CREDIT MANAGEMENT

Why train with the Kenya School of Credit Management?

• Pioneers and trainers in credit management in Kenya• Specialists in training credit management in East and Central Africa• We are a one stop shop for all interested in the career of credit

management• Highly experienced and qualified lecturers• Centrally located in the central business district• Job placement for qualified persons in credit management

COURSES OFFERED

Credit Management Technicians (CMT) - Examinable by KASNEBCertified Credit Professionals (CCP) - Examinable by KASNEB

Certificate in Credit Management - Examinable by Gretsa UniversityDiploma in Credit Management - Examinable by Gretsa University

Bachelor of Commerce - Credit management option. Now available at Gretsa University - Thika on a full time, part time and distance learning basis. CCP/CPA/CPS graduates to join at third year.

In-house and open programs in Credit Management available.

Executive Credit Management Program now available through distance learning.

ACADEMIC CALENDAR

KSCM has two semesters in one calendar year. The semesters begin in January and July every year.

SEMINARS AND WORKSHOPSKenya School of Credit Management is a market leader in training and facilitating seminars/ workshops that equip staff working in the credit departments with the latest tools to handle credit.



Introduction The main objective of every learner is to study for the purpose of learning

and understanding. Other objectives including passing examinations and attaining higher grades automatically fall into place if the learner understands the gist of what he studies. The learner’s pursuit to get maximum benefits from the studies is influenced by the following factors:

(i) Attitude A learner cannot excel in academic work if the

learner's attitude towards the course is skewed. Positive attitude towards the course in its entirety will be a key ingredient for success. Excellence in the course or unit will be measured by performance in each individual sub unit (or subject). It is therefore very important for one to dedicate enough time and commitment to every subject so as to maintain a balance that will make the learner achieve optimum results.

It is not uncommon to find students preferring some subjects over others because these subjects are considered by those students as difficult or simple, irrelevant or simply less significant. A student aspiring to be an accountant, for instance, may not see the need for attending law classes, a student studying medicine

The fuel of academic excellence

I will do itYES, I did it!

WHICH STEP HAVE YOU REACHED TODAY?

I can do it

I'll try to do itHow do I do it

I want to do itI can't do it

I won't do it

Simon WamuLecturer

Aberdeen College of Accountancy


may doubt the wisdom of whoever included principles of management as a subject in the syllabus. These are wrong perceptions.

These learners fail or refuse to find a connection between these other subjects in the module to those they consider important. The main reason for this is mainly due to their focus only on exams rather than have a wholesome understanding of the profession they choose to study.

When a learner develops a negative attitude towards certain subjects, performance in those subjects receives a real beating. The prospect of studying the subject becomes painful to imagine.

Generally, a learner with the right attitude will inevitably achieve the best results. The learner will not entirely depend on the teacher’s positive attention or ideal learning infrastructure to get the maximum out of the learning environment. The right attitude will enable the learner develop a sense of self persuasion and drive to learn and achieve.

The positive attitude sharpens the learner’s creativity and controls the thinking. It makes the learner look for feasible ways of achieving the best. It increases the learner's motivation to learn.

The learner’s attitude is therefore a critical attribute that should at all times be upheld. The positive attitude will be well guarded when the learner has faith in his/her abilities. When the learner fails to trust that he/she can excel irrespective of the circumstances, then his/her attitude lacks the foundation to stand.

(ii) Belief The underlying factor among

virtually all people who succeed in various areas is their resolve to work hard and believe in their abilities. They never let the environment have the monopoly of determining their destinies. They blind themselves from any sight of despair and open all the floodgates of positive thought well premised on solid belief.

It is however unfortunate that people confuse belief and a wish. A wish is a passive optimism that gives one hope that somehow some day the streams of life will flow into their channels of success. If one does not create tributaries to feed the streams, then the wish would be useless. Unlike belief, a wish is short-lived. It fades fast at the backdrop of frustration. Belief is permanent. It is not weakened by setbacks and stumbling blocks. It gels along well with persistence.

UNACCEPTABLE ACCEPTABLE VERY GOOD EXCELLENTPOOR

Rarely completesclass work

Not motivated

Neither listens nor engages in listening

Not keeping on task when supported

Disruptive to the learning of others

Completes class work set

Can be motivated

Listens and engages in the learning

Usually stays on task

Works collaboratively with support from others

Completes class work set to a high standard

Motivated and accepts challenge

Actively listens and engages in the learning

Works with increasing independence

Works collaboratively

Completed classwork is below expectations

Would benefit from greater motivation

to learn

Listening skills need developing

Needs regular reminding to stay

on task

Difficulties working collaboratively

Always completes class work, often exceeding

expectations

Highly motivated and seeks challenge

Actively listens and makes invaluable

contributions

An independent proactive learner

Works collaboratively supporting others

A T T I T U D E T O L E A R N I N G

Learning


Virtually every learner wants (wishes) to pass. But that’s just what it is - a wish. Those that believe they can pass work hard and smart to actualise their wishes. Whereas a wish is more or less concerned with wanting and hoping that it would have been done or it will be done, belief has an element of going and doing. That’s what makes the difference, the big difference.

When you have the right attitude towards learning and enough belief in your potential to succeed, you get the motivation to learn and the road to success becomes a lot clearer. But the right attitude and strong belief rarely becomes easier without a strong base.

(iii) VisionVision helps us to set goals and

see where we are going and what we want to do. Setting goals is a manifestation of the willingness and intention to achieve. Developing a good plan and goals will provide the signposts along the road which will then help you keep a sense of direction. It fuels the learning engine which activates learning from one day to the next. It provides the learners with an opportunity to determine and experience success.

Goals will encourage you to wake up and do things today and also enable you to anticipate the results of your present actions. This is so because when you consciously undertake to plan and set goals to be achieved within a definite time, you tend to associate and relate with the desired future state in advance.

A strong vision will make you get focused and be able to see the end from the beginning. It will provide you with the motivation and the craving

necessary to reach the level you want. This is because it enables you to encounter the feeling of that state in advance. When your vision is clear you can see and tell how far you have gone and how far you are yet to go. It gives you a feeling of satisfaction to understand that you have already surmounted a few challenges and you are on track.

Every examination that a learner passes is a milestone that presents the motivation and courage to go ahead. The learner becomes subconsciously inspired by a thought of having accomplished a goal. The vision to successfully complete the entire course enables the learner to see and anticipate the goals that lie in front and gives him/her the belief and persistence to accomplish them. Passing all the examinations and graduating with a certificate is like constructing a big house. Each stage that a learner passes provides a brick for the house.

The learners should realise that they hold the key to their success and therefore they need to chart their own path that is driven by pursuit of their vision. They should have the discretion of choosing their careers based on their interests. The real transition from childhood to adulthood is at the point where the learner consciously chooses and takes control of her career path.

(iv) MotivationNo matter how brilliant and

intelligent a learner can be, he/she cannot get excellent results when the motivation is deficient. The inclination and motivation to learn is more important than the mere ability and power to do well. Yes, the quest quotient is more exciting and fulfilling than the intelligent quotient. Motivation is the wick in the candle of learning.

The environment within which the learners find themselves cannot be trusted to provide adequate motivation. The learners will therefore need to always carry their own sunshine wherever they go.

For the learners to develop motivation, they need to become

conscious of the role played by motivation in their pursuit

of knowledge. They must understand the

reasons that made them go to school.

These reasons should motivate

them to seek knowledge of

the content

Learning


and material that satisfies their reasons for learning.

Learners who have conscious and express goals and objectives will feel motivated to work hard towards their achievement. They will be less troubled when some of the ways are demanding and uncomfortable because they know that the joy of meeting the goals is far much bigger than the pain of the effort applied in meeting the goals.

The goals set should however be clear, high enough and realistic. Low goals are easily achievable and the effort put in to reach them is low. This can easily lead to complacency and confine the learners in a comfortable cave of mediocrity.

The skills that the learners acquire become relevant when they put them into practice. They also get a deeper understanding of the concepts when they relate them to what happens around. The motivation is increased when they can find a real connection between what they theoretically learnt in class and what actually happens within their environment.

Applying the skills learnt cannot succeed when learners simply cram facts into their mind. Learning to understand should be the rule. Another reason that prevents them from being able to apply what they learn is the way they learn. Some of them learn by simply appearing in a class or lecture room. They are meant to ‘religiously receive’ knowledge from the teacher who ‘owns’ the knowledge and ‘shares’ it to them little by little each day.

Learners can also derive the greatest level of motivation from their ability to manage time properly. A learner who schedules tasks within the available time is more likely to accomplish them satisfactorily. The learner needs to arrange a timetable based on a balanced assessment of the subjects and remain committed to it. The learner could alter the time schedules depending on his/her prudent and wise judgement of situations. The learner must also find a way of self-appraisal to determine the level of understanding and accomplishment of tasks.

Proper time management and discipline enables one to accomplish the tasks ahead effectively and within the required time. It provides the motivation to increase the scope of work and try to accomplish it.

Learners cannot make maximum use of their mental potential when they fail to get motivated to learn. Lack of motivation denies them the ability to tap deep into their mind and develop higher order thinking skills. It is therefore of utmost importance that the learners develop an insatiable drive to learn.

They must consistently make themselves remain in a motivational mood. Motivation is like a warm bath. When the learners fail to consistently practice the various approaches that encourage them to learn, their motivation is lost. They need to be guided by a strong belief and vision that enables them to not only be motivated but also be greatly inspired. Inspiration provides a lasting urge of accomplishment.

(v) ActionTaking action eliminates the fear

that is created in theory. If you want to do something, you will find it difficult doing it if you take time thinking and merely talking about it. The longer the idea stays in your head without being acted upon, the weaker it becomes. The negative part of the mind feasts on procrastination. It creates a myriad of impossibilities

Learning


and convinces you to discard the idea. However, the positive side of the mind feeds on action.

When you take an initiative to act, creative ideas start flowing and the ball starts to roll. The momentum is built and things that seemed impossible begin to happen. The fears and doubts that would have been formed by theoretical thinking and talking will then be diluted by the new found momentum. The practicality of the action will remove the fear, impossibility and doubts that theory cannot solve. It decreases the theory that invites fear and doubts.

When the learners become focused on studying, they get the motivation to do so. All the energy is directed toward the studying process and soon the erstwhile difficult process becomes easier. Where focus goes, energy flows.

Action is important and supersedes intelligence and talent. The action quotient, just like the quest quotient, is much bigger than the intelligent quotient. Intelligence and talent wrapped in a rag of inaction is a burden that stinks. It’s like a brand new Mercedes Benz with inflated tyres.

As we have seen, taking action is one very important attribute that puts the learner into the spirit of motion. It ignites the engine and gets it ready to go. A single action is very important though it is not always enough. The learner will need the next element in order for her to be in a consistent and sustainable mood of action. This element is persistence.

(vi) Persistence Persistence is the ability to keep

on trying even when the desired outcome is out of sight. It is the elimination of an option. It is the spirit of learning from the previous outcome and pressing on until the desired outcome is achieved. Persistence provides an extra stamina and willpower to accomplish a task that could have been abandoned. It is the last and a very useful ingredient in the recipe of success.

The learner’s passion has a greater impact on his/her level of persistence. The drive to learn and get better results gives the power and strength to continue searching, studying and doing all that one can to get the best. The love for learning gives a reason to push on even in the wake of discouraging episodes. Passion is love and anger combined. Therefore, learners need to create

a spirit of passion in learning which will be very instrumental in oiling the gears of persistence and perseverance.

Learning is about knowing new things and ways and improving on them. New things are mastered by repeated trials which is the gist of persistence. Persistence in itself is strong and does not allow any form of discouragement or any feeling of despair to get in its way. It marshals its strength and refuels its engine of service. It develops a tireless stubbornness that stands the test of adversity.

ConclusionMost learners that achieve

academic excellence are self-made. They encounter challenges like anybody else. But they take these challenges as inevitable meanders in the river of learning. They know that they don’t fail because they cannot succeed but because they are yet to get the tune. They have the belief and a massive spirit of persistence fuelled by their vision. They therefore work hard day by day, hour by hour, minute by minute to make their dreams something that they can see with their eyes and touch with their hands. This sense of direction and drive makes them get down to work

irrespective of what is happening around them.

A c a d e m i c excellence is only achieved when learning is taken as a continuous process. One writer said, "when you stop learning, you are old, whether at twenty or eighty".

Learning


Students, trainers, parents/guardians/sponsors, employers and other stakeholders are hereby informed that KASNEB has opened student fee collection accounts with the following banks:

(a) National Bank of Kenya Ltd. (NBK) - Account No.01001031572601.

(b) Equity Bank Ltd. - Account No.0170299238025.

(c) Kenya Post Office Savings Bank (Postbank) - Account No.0744130009246.

(d) Co-operative Bank of Kenya Ltd. - Account No.01129128535900.

The bank accounts are already operational.

Students are required to complete the appropriate KASNEB forms and relevant fee deposit slips (except for Postbank which does not use deposit slips). The students will be issued with one copy of the deposit slip and a computer generated slip for their records. However, for Postbank only a computer generated receipt will be issued.

Upon payment of the requisite fees to the bank, a cash deposit receipt will be issued to the payee. The completed KASNEB forms will be left with the bank for onward transmission to KASNEB together with one copy of the deposit slip.

All students are advised to pay their fees through any of the above bank accounts.

Note: Students should ensure that all documents requiring certification, such as copies of academic and professional certificates and identity card/passport are so certified before being handed over to the bank.

KASNEB student fee collection accounts with banks

K ASNEB PictorialK ASNEB Pictorial

Awarding achieversKASNEB and other corporate bodies awarded prizes to the best students in the December 2012 examinations. The ceremony was held at the Sarova Panafric Hotel on Friday, 3 May 2013

Walking to fight Hunger

KASNEB staff present a cheque to officials of the Kenya Freedom from Hunger Walk on Wednesday, 8 May 2013 at Kilimo House, Nairobi

KASNEB staff participate in the Kenya Freedom from Hunger Walk held on Saturday, 18 May 2013

Promoting knowledgeKASNEB donated books related to its examinations to seven Kenya National Libraries in different regions of the country in the month of June 2013. These were Mombasa, Embu, Nyeri, Kericho, Kakamega, Kisumu and Eldoret

Connecting with stakeholdersKASNEB held a workshop for County Directors of Education and County Examination Officers at the Laico Regency, Nairobi on Friday, 28 June 2013

Students of KASNEB, parents, sponsors, guardians, training institutions and other stakeholders are hereby notified of the following important dates and information.

1. Examination dates for November/December 2013 examinations are as follows:

(a) ATC, ICTT, IST and CMT Levels I and II - Tuesday, 26 November 2013 to Thursday, 28 November 2013

(b) CPA, CPS, CSIA, and CCP Part I - Friday, 29 November, Monday, 2 December 2013 and Tuesday, 3 December 2013

(c) CPA, CPS, CSIA and CCP Parts II and III - Wednesday, 4 December to Friday, 6 December 2013 (d) CICT

(i) Part I - Friday, 29 November 2013, Monday, 2 December to Wednesday, 4 December 2013

(ii) Part II - Tuesday, 3 December to Friday, 6 December 2013

(iii) Part III - Wednesday, 4 December, Thursday, 5 December and Friday, 6 December 2013

(e) Foreign Accountancy Qualifications (FAQ) - Thursday, 5 December and Friday, 6 December 2013

2. Examination brochures and forms are obtainable on request, free of charge: (a) In Kenya either in person at the offices of KASNEB or through the post. The examination brochures and forms are also

available at any branch of the Kenya National Library Service (KNLS) countrywide or training institutions.

(b) Outside Kenya either in person at the offices of KASNEB, through the post or at the following offices in Eastern and Central Africa:(i) In Uganda at DMK Associates, Crown House Building - Umeme offices, first floor, suite 2, Bombo Road - Kampala,

Makerere University Business School (MUBS) - Nakawa, Kampala International University - Kansanga, Busoga University - Iganga, and Bugema University, Kampala Campus - Bombo Road.

(ii) In Rwanda at Kigali Institute of Management - Rimera, School of Finance and Banking, Gikondo - Kigali and Institut Polytechnique De Byumba.

(iii) In Burundi at the East Africa Centre for Professional Studies (EACPS), Boulevard de L’OVA Quartier Industriel QL6284/C and Kim-PAC, Rohero 2, Avenue Moso, No.28 - Bujumbura.

(iv) In Cameroon at Maaron Business School 10, Rue, Joffre, Akwa – Douala and Fomic Business School, Buea, Cameroon.

(v) In South Sudan, at the University of Juba.

3. Method of payment of fees Attention of students is drawn to the “Guide to the November/December 2013 examinations” regarding secure methods

of paying fees to KASNEB. (a) In Kenya Students are advised to pay through any branch of the National Bank of Kenya Ltd. (NBK), Equity Bank, Kenya

Post Office Savings Bank (Postbank) or Co-operative Bank of Kenya. Students may also make payment in person at KASNEB offices in cash, by cheques/bankers cheques/drafts drawn in the name of KASNEB or through the post.

(b) Outside Kenya Students are advised to pay the applicable fees in dollars at any branch of KCB in their countries to KASNEB KCB collection account number 1123096465, domiciled at Capital Hill Branch, Nairobi. Thereafter, students should submit their documents to KASNEB together with a copy of the bank deposit slip. Students are individually and personally responsible for ensuring that fees are paid to KASNEB. Consequently, students who pay fees through third parties should ensure that such parties are honest and reliable and will therefore remit the fees to KASNEB without delay. Bankers Cheques/Drafts should be drawn payable to KASNEB and Inter-State Money Orders should be payable at City Square Post Office - Nairobi. Examination entry/annual registration renewal forms and remittances which are sent by post should be posted at least one week before the closing date to ensure that they are received in time.

4. All students of KASNEB are required to update their annual registration renewal position by 1 July of each year.

5. Closing dates for applicants wishing to enter for the November/December 2013 examinations are as shown below:

Normal Registration: Thursday, 15 August 2013 Late Registration: Friday, 13 September 2013

EXAMINATIONS NOTICE - NOVEMBER/DECEMBER 2013 EXAMINATIONS

EXAMINATION DATES

Kenya School of Credit ManagementThis column spotlights the fully accredited institutions. In this edition of the KASNEB Newsline, we feature the Kenya School of Credit Management based in Nairobi, Kenya.

1. Introduction

Kenya School of Credit Management (KSCM) is an institution that specialises in training and consultancy specifically in credit management. The institution was incorporated in the year 2000 and is fully registered with the Ministry of Education and the Directorate of Industrial Training. The institution is also fully accredited by KASNEB.

KSCM specialises in the following areas:• Training of students leading to

professional qualifications in credit management.

• Conducting seminars and workshops both in-house and general in credit/debt management.

• Debt management consultancy, collection and outsourcing.

KSCM is the only institution within sub-sahara Africa which trains students in credit management as a profession. Similar institutions can only be found in South Africa, Egypt and Nigeria.

2. Our vision, mission, philosophy and core values

The visionTo become a center of excellence in education, training and research in credit management globally.

Mission We are committed to promoting professionalism in credit management through education, training, research development and consultancy to all aspiring credit professionals in Kenya and globally.

PhilosophyTo promote excellence, integrity, customer sensitivity and professionalism in credit management.

Core values• Team work: We shall enhance a team working spirit that involves all stakeholders

in everything we do.• Integrity: We shall keep our promise and promise professionalism.• Customer focus: We will listen to our customers and strive to deliver

uncompromisingly high quality services to meet their needs and expectations.• Innovativeness: We shall continuously raise service provision by promoting

creativeness in our services development and delivery.• Result oriented: We aspire to be the best in giving results as per our promises.

3. Recognition

KSCM has taken a lead role in professionalising credit management in Kenya and the graduates produced by the school are recognised in the job market. The role of well trained credit control staff can never be overly emphasised especially in this era of strained cash-flow and non performing debts in many organisations. Our graduates have adequately accomplished these challenges in various sectors of the market. So far the school has produced more than 1,000 professional graduates into our economy with remarkable performance in their workstations.

4. Scope of Work

(a) Training and examinationsThe Examinations are administered by KASNEB, one of the leading and most recognised examination bodies in Kenya. We train students in the Credit Management

Mr. Patrick K. Kairu,Director, KSCM

Credit professionals of the future in making

College profile Training in credit management

Training in credit management

CONTACTS: St. George’s House, 4th floor, Parliament Road, opposite the Professional CenterP. O. Box 54340-00200 Nairobi. Telephone nos. 254-02-317872/2212753/ 0720-100655 Fax: 254-02-2211140

E-mail: [email protected] Website: www.creditschoolmanagement.net

Technicians (CMT) and Credit Management Professionals (CCP) courses. Our semesters begin in January and July of each year.

(b) Seminars and workshopsWe conduct seminars and workshops both in-house and open ones specifically in credit management which are geared towards improving collection of revenue and cash-flow.

We also offer the following services:(a) Debt outsourcing services.(b) Credit department restructuring.(c) Formulation of company credit policies.(d) Sourcing of effective credit staff on behalf.Collection of debts on behalf.(e) Holding credit talks in organisations.

5. Management

An institution is as strong as the people behind it. We believe in excellence in all what we do. All our members of staff are highly trained and above all most have a bias in credit management. These include:(i) Mr. Patrick K. Kairu - BBA, BCM (UK), Msc – Credit (UK)(ii) Mr. J. K. Mburu - BSC (NBI), PGDE (KU), MBA,CPA (K) (iii) Mr. Michael Musyoka - CPA (K), Diploma in Business Admin.(iv) Mr. Joseph M. Muiruri- CCP (K)(v) Mr. Daniel C. Kamau - LLB

6. Conclusion

Credit management has established itself worldwide as a vital management function with a major contribution to the economic well being of organisations of all kind. Efficient credit management with its critical impact on cash flow can make all the difference between survival and insolvency in the private sector, or between cost effective and wasteful administration in the public sector. Therefore, there can be little doubt that all credit/debt managers need the knowledge and expertise to handle this crucial and sensitive area of the economy.

Offering quality training to aspiring credit professionals

KSCM is result oriented

Extra-curricular activities

PATH Institute of Technology and EntrepreneurshipP.O. Box 168 - 00204 Athi River

Mobile: 0700392770Email: [email protected]

PATH INSTITUTE OF TECHNOLOGY AND ENTREPRENEURSHIPKITENGELA COURSES OFFERED:

Hostels available at reasonable rates

KASNEB

Accounting Technicians Certificate (ATC) Levels I and II Certified Public Accountants (CPA) Parts I - III Information Communication Technology Technicians (ICTT) Certified Information Communication Technologists (CICT)

KNEC/ABE/ICM

Certificate/ Diploma in Business ManagementCertificate/ Diploma in Sales and MarketingCertificate/ Diploma in Purchasing and Supplies Management

PITE

• Certificate in MS Office, • Certificate in Data Analysis, • Certificate in Computerised Accounting, • Certificate in Web Design, • Certificate in Computer Programming, • Entrepreneurship short courses and seminars• Production skills in soap-making, cosmetics, exercise books, paints

and dyes, animal feeds, cakes, juices, yoghurt e.t.c

INTERNATIONAL COMPUTER DRIVING LICENCE (ICDL)ICDL registration every Monday

KASNEB



AFRICA COLLEGE OF AVIATION AND MANAGEMENT (ACAM)

Vision To be a model institution of higher learning in aviation and management in Africa

MissionTo become a premier

centre of academic and professional excellence

Core valuesExcellence

Commitment Integrity

Dedication

We have a qualified team of lecturers,who will give you specialised attention.

We offer access to internet (hot spot), exercise books, college t-shirts and pens, job placements and career guidance and soft skills training.

2nd & 3rd floor, Information House, Hakati Road/Mfangano Street, next to Afya Centre opp. Ukwala supermarket P.O.Box 68119 – 00200, Nairobi, KenyaTel: 020 2212410/020 2212430 Cell: 0729 697412/020 2150156 Email: [email protected] Website: www.acam.ac.ke

ACCOUNTING COURSES

1. Accounting Technicians Certificate (ATC) Levels I & II

2. Certified Public Accountants (CPA) Sections 1- 6

3. Certified Public Secretaries (CPS) Sections 1 - 6

INFORMATION TECHNOLOGY

1. Information Communication Technology Technicians (ICTT) Levels I - II

2. Certified Information Communication Technologists (CICT) Parts I - III

Hostels availableINTAKE IN PROGRESS

SCHOOL OF ACCOUNTING AND FINANCE

KASNEB

April - June 2013 KASNEB Newsline, Issue No. 2 53 April - June 2013 KASNEB Newsline, Issue No. 2 53

DECEMBER 2012 EXAMINATION PRIZE WINNERSWe congratulate the following candidates who excelled in their respective examinations and

qualified for award of prizes in the specified papers, levels and sections in the December 2012 examination sitting.

Prize winners

ACCOUNTING TECHNICIANS CERTIFICATE (ATC)

EXAMINATION

LEVEL I

Introduction to Financial Accounting

ATC/147877

RUTH WANJIRU NGUYO

Donor: KASNEB

Runner upIntroduction to

Financial AccountingATC/146916

ENOCK MICHIEKA MAKORI

Donor: KASNEB

Introduction to Law(Common Paper)

ATC/120974

OMAR MOHAMED HUSSEIN

Donor: KASNEB

Entrepreneurship and Communication (Common Paper)

ATC/146322

NELSON MANDELA ANGWENYI

Donor: KASNEB

Principles of Management(Common Paper)

ATC/148712

KARISA SAIDI MTUNGA

Donor: KASNEB

Business Mathematics(Common Paper)

ATC/147653

SOPHIE JEPKORIR BOKONG

Donor: KASNEB

LEVEL II

Financial AccountingATC/140282

MARGARET WANJIRU WARURIDonor: KASNEB

Fundamentals of Information Communication Technology

(Common Paper)ATC/122916

PATROBA OWINO AFWAMBADonor: KASNEB

Cost AccountingATC/140106

MUMO MUTUKU

Donor: KASNEB

TaxationATC/140082

ANNE WANYAMA

Donor: KASNEB

AuditingATC/142185

VIDONA AUMA OMOGIDonor: KASNEB

BEST OVERALL IN A LEVEL

ATC LEVEL IATC/149231

MILLICENT NAMBO WANYONYI

Donor: KASNEB

ATC LEVEL IIATC/144477

JOEL BOSIRE NGARE

Donor: KASNEB

INFORMATION COMMUNICATION

TECHNOLOGY TECHNICIANS (ICTT) EXAMINATION

LEVEL I

Introduction to ComputingICT/4732

LILIAN WAMUYU NYAMBURADonor: KASNEB

Computer MathematicsICT/3910

JOHANA KIBET TANUIDonor: KASNEB

Computer Applications (Theory)ICT/4735

BONFACE MUSYOKA MUTUADonor: KASNEB

Runner upComputer Applications (Theory)

ICT/4520PAUL KAMAU KIHIU

Donor: KASNEB

Computer Applications (Practical)ICT/3666

DOROTHY MAKANDIDonor: KASNEB

Computer NetworkingICT/4736

ISAAC MWENDO MAWIADonor: KASNEB

Prize winners


LEVEL II

Internet SkillsICT/3089

DAVID KAGUNDA KIUNGA

Donor: KASNEB

Computer Support and Maintenance

ICT/3486

BONIFACE KIPKOECH

Donor: KASNEB

Programming ConceptsICT/3344

PHILIP KARIUKI THEURI

Donor: KASNEB

Foundations of Accounting(Common paper)

ICT/4083LILIAN KANGAI NAFTALY

Donor: KASNEB

Information SystemsICT/3807

ISAAC MWAI KAMAUDonor: KASNEB


ICTT LEVEL I

ICT/4732

LILIAN WAMUYU NYAMBURA

Donor: KASNEB

ICTT LEVEL II

ICT/4083LILIAN KANGAI NAFTALY

Donor: KASNEB

INVESTMENT AND SECURITIES TECHNICIANS (IST)

EXAMINATION

LEVEL I

Finance and Investments

IST/283

KENNETH KIPKOECH SANG

Donor: KASNEB

LEVEL II

Securities Analysis and Valuation

IST/296

DANIEL MUCHIRI IRUMBI

Donor: KASNEB

CREDIT MANAGEMENT TECHNICIANS (CMT)

EXAMINATION

LEVEL I

Fundamentals of Credit Management

CMT/994

MARTIN MWANGI KURIA

Donor: KASNEB

Runner up

Fundamentals of Credit Management

CMT/995

VICTORIA ATIENO OYENGO

Donor: KASNEB

LEVEL II

Economics

(Common paper)

CMT/939

PATRICK NJANGI NDEGWA

Donor: KASNEB

Marketing and Customer Relations

CMT/935

PETER KIPKOECH LANGAT

Donor: KASNEB

Runner up

Marketing and Customer Relations

CMT/934

PERPETUA MUTHONI WARAGA

Donor: KASNEB

Law Governing Credit Practice

CMT/957

JOHN MBURU WANGECHI

Donor: KASNEB


CMT LEVEL I

CMT/994

MARTIN MWANGI KURIA

Donor: KASNEB

CMT LEVEL II

CMT/933

MARGARET NJERI MAINA

Donor: KASNEB

CERTIFIED PUBLIC ACCOUNTANTS (CPA)

EXAMINATION

PART I - SECTION 1


NAC/212084

BRIAN WALUKHANA WANJALA

Donor: ERNST & YOUNG

Introduction to Law

(Common paper)

NAC/188598

PETER GICHUKI WERU

Donor: KINYORI AND ASSOCIATES

Entrepreneurship and Communication

(Common paper)

NAC/210451

MICHAEL KIPKORIR LAGAT

Donor: KING’ANG’I KAMAU AND

COMPANY

Prize winners


PART I - SECTION 2

Economics

(Common Paper)

NAC/207832

SAMUEL MBUTHIA MUNDIA

Donor: WACHIRA IRUNGU &

ASSOCIATES

Cost Accounting

NAC/208639

EDWIN KIMARI MBUGUA

Donor: MUGO & COMPANY CERTIFIED

PUBLIC ACCOUNTANTS

Auditing and Assurance

NAC/213791

CAROLINE NDUNGE WAMBUA

Donor: CARR STANYER GITAU &

COMPANY

BEST OVERALL IN SECTION (S)

SECTION 1 ONLY

NAC/213330

YAI LUAL GIEL

Donor: RSM ASHVIR

SECTION 2 ONLY

NAC/205339

LOUIS MAKOKHA BULUMA

Donor: RSM ASHVIR

SECTIONS 1 AND 2 COMBINED

NAC/200097

ELIPHAZ NYABUTI NYABUTI

Donor: RSM ASHVIR

PART II - SECTION 3

Management Information Systems

(Common paper)

NAC/194555

VIOLET MACHUMA WEKESAH

Donor: DELOITTE & TOUCHE

Financial Management

(Common paper)

NAC/200150

KIRUI PHILIP KIPKEMOI

Donor: KIGO NJENGA & COMPANY

CERTIFIED PUBLIC ACCOUNTANTS

Financial Reporting

NAC/205660

SAMWEL ONYARI ONWONGA

Donor: PRICEWATERHOUSECOOPERS

PART II - SECTION 4

Taxation

NAC/190993

MOSES WAITHAKA KINYANJUI

Donor: PKF Kenya

Runner up

Company Law

(Common paper)

NAC/178852

VICTOR OKOTH LIGALA

Donor: KASNEB

Quantitative Analysis

(Common paper)

NAC/179830

DENNIS KIMUHU IRUNGU

Donor: MHASIBU SACCO LIMITED


SECTION 3 ONLY

NAC/183535

FAITH WAMBUI BUNDI

Donor: MAZARS CERTIFIED PUBLIC

ACCOUNTANTS (KENYA)

SECTION 4 ONLY

NAC/153366

MARY WANJIKU MAINA

Donor: H.W. GICHOHI & COMPANY


NAC/187474

HARRISON NGUGI GITAU

Donor: MBAYA & ASSOCIATES

PART III - SECTION 5

Principles and Practice of Management

(Common paper)

NAC/190267

KENNEDY SAWE KIPKOGEI

Donor: KASNEB

Management Accounting

NAC/73708

VIDELIS NJERI NJUGUNA

Donor: KPMG KENYA

Advanced Financial Management

NAC/191249

LORRAINE NAFULA OSIDIANA

Donor: DELOITTE & TOUCHE


Advanced Taxation

NAC/170787

BRENDA MUGEBE NAMIDI

Donor: PKF KENYA

Runner up

Advanced Taxation

NAC/158447

MARTIN WANJOHI WAIGURU

Donor: KASNEB

Advanced Auditing and Assurance

NAC/195021

GEOFFREY THIGE KINYANJUI

Donor: PRICEWATERHOUSECOOPERS

Advanced Financial Reporting

NAC/161675

CATHERINE MUMBI KAMAU

Donor: MURDOCH McCRAE & SMITH

Prize winners



SECTION 5 ONLY

NAC/195021


Donor: ICPAK

SECTION 6 ONLY

NAC/161675

CATHERINE MUMBI KAMAU

Donor: KASNEB


NAC/195021


Donor: ICPAK

BEST LADY GRADUATE

NAC/179474

HILDAH JEBIWOTT KOSGEI

Donor: AWAK

CERTIFIED PUBLIC SECRETARIES (CPS)

EXAMINATION

PART I - SECTION 1

Organisational Behaviour

NSC/211955

VERAH KEMUNTO NTENGA

Donor: CROWE HORWATH EASTERN

AFRICA

Communication and Report Writing

NSC/209222

GRACE NJERI KAMAU

Donor: VISION INSTITUTE OF

PROFESSIONALS

PART I - SECTION 2


(Common paper)

NSC/213291

ALFRED MACHARIA MUIKIRIA

Donor: KASNEB


SECTION 1 ONLY

NSC/206998

MAUREEN JEROTICH KOECH

Donor: ICPSK

SECTION 2 ONLY

NSC/213291


Donor: KASNEB


NSC/213291


Donor: KASNEB

PART II - SECTION 3

Company Secretarial Practice

NSC/158751

MAUREEN MAGOMA MBAKA

Donor: NGURU MUREGI & ASSOCIATES

PART II - SECTION 4

Entrepreneurship

NSC/204420

LILIAN NYAGUTHII KABAYA

Donor: KASNEB

Company Law

NSC/163061

BEATRICE CHEPKEMOI MANYAL

Donor: AFRICA REGISTRARS

CERTIFIED PUBLIC SECRETARIES

Meetings- Law and Procedure

NSC/172007

TITUS MACHARIA WAMBUI

Donor: KASNEB


SECTION 3 ONLY

NSC/158751

MAUREEN MAGOMA MBAKA

Donor: KASNEB

SECTION 4 ONLY

NSC/157489

JOSEPH MWANGI MURIMA

Donor: KASNEB

Runner up

SECTION 4 ONLY

NSC/163061

BEATRICE CHEPKEMOI MANYAL

Donor: KASNEB


NSC/199123

PETER MURIMI MAINA

Donor: KASNEB

PART III – SECTION 5

Advanced Company Secretarial Practice

NSC/167392

ANGELA ANYANGO LEBU

Donor: H.W. GICHOHI & COMPANY

Runner up

Advanced Company Secretarial Practice

NSC/194804

CAXTON GAMBO NJUGA

Donor: KASNEB

Project Planning and Management

(Common paper)

NSC/135425

MARK MUKUHA WANJOHI

Donor: KASNEB

Runner up

Project Planning and Management

(Common paper)

NSC/167872

EFFIE MUTIO WAMBUA

Donor: KASNEB


Strategic Management

NSC/174742

MARTIN MAKEBU WAFULA

Donor: KASNEB

Prize winners


Strategic Human Resources

Management

NSC/176339

GRACE WAHETI MUIGA

Donor: SAVANNA & ASSOCIATES

Corporate Governance and Ethics

NSC/180991

DANIEL NGUGI MUNGAI

Donor: KASNEB


SECTION 5 ONLY

NSC/135425

MARK MUKUHA WANJOHI

Donor: ICPSK

SECTION 6 ONLY

NSC/176339

GRACE WAHETI MUIGA

Donor: AXIS KENYA


NSC/164405

DENNIS MAINA KARAYA

Donor: KASNEB

Runner up


NSC/167392

ANGELA ANYANGO LEBU

Donor: KASNEB

BEST LADY GRADUATE

NSC/167392

ANGELA ANYANGO LEBU

Donor: CATHERINE MUSAKALI

CERTIFIED INFORMATION COMMUNICATION

TECHNOLOGISTS (CICT) EXAMINATION

PART I - SECTION 1

Introduction to Computing

CTP/1736

MARTIN WEKESA SIMIYU

Donor: KASNEB

Computer Applications (Theory)

CTP/1600

FELIX ONDITI NYAKUNDI

Donor: KASNEB

Computer Applications (Practical)

CTP/1600

FELIX ONDITI NYAKUNDI

Donor: KASNEB

PART I - SECTION 2

Operating Systems (Theory)

CTP/1740

OCHIENG E. SAMUEL YADA

Donor: KASNEB

Operating Systems (Practical)

CTP/1583

CHARCHIL OUMA JOMO

Donor: KASNEB


CTP/1583

CHARCHIL OUMA JOMO

Donor: KASNEB

Runner up


CTP/1536

DADSON CIURI MAINA

Donor: KASNEB


SECTION 1 ONLY

CTP/1736

MARTIN WEKESA SIMIYU

Donor: KASNEB

SECTION 2 ONLY

CTP/1583

CHARCHIL OUMA JOMO

Donor: KASNEB

SECTIONS 1 AND 2 (COMBINED)

CTP/1740

OCHIENG E. SAMUEL YADA

Donor: KASNEB

PART II - SECTION 3

Database Systems

CTP/1216

JAMES MUCHIRI KARUGU

Donor: KASNEB

Structured Programming

CTP/1614

JOAN JEPLETING SAMOEI

Donor: KASNEB

Runner up

Structured Programming

CTP/1158

BENARD OLUOCH OBWAYA

Donor: KASNEB

Systems Analysis and Design

CTP/398

HANNINGTON KIBOR TANUI

Donor: KASNEB

PART II - SECTION 4

Object Oriented Programming

CTP/1216


Donor: KASNEB

Prize winners


Runner up (1)


CTP/1018

NELSON OCHIENG’ DUYU

Donor: KASNEB

Runner up (2)


CTP/1614

JOAN JEPLETING SAMOEI

Donor: KASNEB

Data Communication and Computer

Networks (Theory)

CTP/143

DESMOND KWANYA AROKO

Donor: KASNEB

Data Communication and Computer

Networks (Practical)

CTP/1525

AMOS KENNEDY KIMANTHI NGWARE

Donor: KASNEB

Systems Security, Professional Values

and Ethics

CTP/1216


Donor: KASNEB

Runner up (1)


and Ethics

CTP/1589

ANTONY ODONGO NGURA

Donor: KASNEB

Runner up (2)


and Ethics

CTP/1234

VINCENT MAJANI ALWAVUHA

Donor: KASNEB


SECTION 3 ONLY

CTP/398

HANNINGTON KIBOR TANUI

Donor: KASNEB

SECTION 4 ONLY

CTP/1216


Donor: KASNEB


CTP/1245

ONESMUS MUSYOKI MWEU

Donor: KASNEB


Software Engineering

CTP/1264

JOYCE NJERI MAINA

Donor: KASNEB


Information Systems Management

CTP/902

MARIO MURITHI KIVECU

Donor: KASNEB

Web Design, Internet Programming

and e-Commerce

CTP/455

FRANCIS CHEPTOO CHERUTICH

Donor: KASNEB

Runner up (1)


and e-Commerce

CTP/689

ALFRED KIMURGOR LIMOH

Donor: KASNEB

Runner up (2)


and e-Commerce

CTP/1264

JOYCE NJERI MAINA

Donor: KASNEB

Runner up (3)


and e-Commerce

CTP/1136

ANN WANYUTI GITONGA

Donor: KASNEB

Research Methods

CTP/1429

NANCY WANGARI KANGANGI

Donor: KASNEB


SECTION 5 ONLY

CTP/903

HENRY MBUGUA WANJAHI

Donor: KASNEB

SECTION 6 ONLY

CTP/1429


Donor: KASNEB


CTP/1429


Donor: KASNEB

CERTIFIED SECURITIES AND INVESTMENT ANALYSTS

(CSIA) EXAMINATION

PART I - SECTION 1

Financial Mathematics

ISP/2732

JAMES MUTURI KIMANI

Donor: KASNEB

Financial Institutions and Markets

ISP/2851

GIDEON MUYONGA SIFUNA

Donor: KASNEB

Prize winners


Prize winners


SECTION 1 ONLY

ISP/2732

JAMES MUTURI KIMANI

Donor: KASNEB

SECTION 2 ONLY

ISP/2733

MARVIN MACHARIA KARIUKI

Donor: KASNEB


ISP/2443

DENNIS MUTHAMA MWANZIA

Donor: KASNEB/ICSIA

Runner up


ISP/2733

MARVIN MACHARIA KARIUKI

Donor: KASNEB

PART II - SECTION 3

Financial Statements Analysis

ISP/2729

ANTONY MUTHEE MAINA

Donor: KASNEB

CSIA PART II - SECTION 4

Advanced Finance, Investment and

Equity Analysis

ISP/2774

SARAH WAMBUI NJOROGE

Donor: KASNEB

Runner up

Advanced Finance, Investment and

Equity Analysis

ISP/2539

JOAN MARIGU NJIRU

Donor: KASNEB

Law and Regulations Governing

Financial Markets

ISP/2685

MARTHA WANJIKU WACHIRA

Donor: KASNEB


SECTION 3 ONLY

ISP/2342

GRACE ANNETTE MUMBI MUGO

Donor: KASNEB

SECTION 4 ONLY

ISP/2342


Donor: KASNEB


ISP/2342


Donor: KASNEB/ICSIA


Valuation and Analysis of Fixed Income

Instruments

ISP/1910

NAOMI JELAGAT KIPTOO

Donor: KASNEB

Runner up

Valuation and Analysis of Fixed Income

Instruments

ISP/2070

JOSEPH KARANJA SUSAN

Donor: KASNEB

Asset Management

ISP/1850

WINNIE NJERI KARANJA

Donor: JONAH K. AIYABEI

Runner up

Asset Management

ISP/1855

DANIEL KIPNGETICH BIRGEN

Donor: KASNEB


Portfolio Management

ISP/2202

JOHN CHEGE NJENGA

Donor: Dr. GEORGE O. WAKAH

International Finance

ISP/2534

JACOB MUGO KABUI

Donor: KASNEB

Valuation and Analysis of Derivatives

ISP/2212

WILLY KIPRUTO SAINA

Donor: KASNEB


SECTION 5 ONLY

ISP/1868

MAKORA CHRISTOPHER ONDIGI

Donor: KASNEB/ICSIA

SECTION 6 ONLY

ISP/2202

JOHN CHEGE NJENGA

Donor: KASNEB/ICSIA

SECTION 5 AND 6 (COMBINED)

ISP/1868

MAKORA CHRISTOPHER ONDIGI

Donor: Dr. GEORGE O. WAKAH

CERTIFIED CREDIT PROFESSIONALS (CCP)

EXAMINATION

PART I - SECTION 1

Credit Management

CCP/1752

CYRUS GITHAIGA THEURI

Donor: INSTITUTE OF CREDIT

MANAGEMENT


PART I - SECTION 2

Taxation Theory and Practice

(Common paper)

CCP/1705

JAMES ATENG NYAGILO

Donor: KINYORI & ASSOCIATES


SECTION 1 ONLY

CCP/1717

GABRIEL LUMA NDUMBU

Donor: KASNEB

SECTION 2 ONLY

CCP/1489

KEMUNTO JUDDY ONUOGA

Donor: KASNEB


CCP/1642

MARY WANGUI KAMAU

Donor: KASNEB

PART II - SECTION 3

Advanced Credit Management

CCP/915

FRANCIS KAMARA KARANJA

Donor: INSTITUTE OF CREDIT

MANAGEMENT

CCP PART II - SECTION 4

Marketing

CCP/1407

FRANCIS KIMANI NJENGA

Donor: KASNEB


SECTION 3 ONLY

CCP/1669

SAMWEL MACHARIA KARANJA

Donor: KASNEB

SECTION 4 ONLY

CCP/1281

LABAN OKONG’O HUMA

Donor: KASNEB


Public Relations

CCP/1388

JAMES NJUGUNA KAMURI

Donor: KASNEB

Law Governing Credit Practice

CCP/1116

RICHARD AMOLLO ABUNGU

Donor: KASNEB


Debt Recovery

CCP/1214

SAMUEL MBURU MACHARIA

Donor: KASNEB

Corporate Lending

CCP/1484

PETER MUSAU MUINDI

Donor: KASNEB

Practice of Credit Management

CCP/1116

RICHARD AMOLLO ABUNGU

Donor: KASNEB


SECTION 5 ONLY

CCP/1116

RICHARD AMOLLO ABUNGUDonor: KASNEB

SECTION 6 ONLY

CCP/1116



CCP/1116


Prize winners

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Documents

Newsline KASNEB · 4 KASNEB Newsline, Issue No. 2 April - June 2013 April - June 2013 KASNEB Newsline, Issue No. 2 5 Biometrics implementing such security measures. Every biometric