SPECIAL REPORT: TOPP

LEADING CORPORATIONS SEE VALUE IN ALTERNATIVE CHARTERED ACCOUNTANCY TRAINING PROGRAMME

As part of its drive to qualify greater numbers of African CAs(SA), the South African Institute of Chartered Accountants (SAICA) is to actively continue with endorsing its Training Outside Public Practice (TOPP) programme.

The renewed thrust was re-launched in August last year at the Rand Club in Johannesburg by Ignatius Sehoole, SAICA’s Executive President.

TOPP offers prospective CAs(SA) the choice between the conventional auditing route TIPP (Training Inside Public Practise) to becoming a CA(SA), and the financial management CA(SA) specialisation that is unique to TOPP.

TOPP’s primary objectives are to:

* Encourage greater entry into, and upward mobility within, the accountancy profession;

* Increase the supply of scarce skills by creating more professional training opportunities for potential CAs(SA); and

* Promote education, training and retention of key accounting professionals in organisations.

While TIPP has just over 8 000 trainees, the numbers of trainees in the TOPP programme in 2006 totalled 416, of which 180 are African, 64 are Indians, 28 are coloured, and 146 are white. On the whole there are currently 8 801 trainee chartered accountants in South Africa.

Both the TOPP and TIPP routes require learners to complete a BCom degree at an accredited university followed by a Certificate in the Theory of Accounting (CTA).

Thereafter, learners must enter into a three-year training contract as exposure to relevant workplace experience before writing their Qualifying Examinations (QE).

Adri Kleinhans, SAICA’s Project Director for Training says: There is no better recommendation for TOPP than those who have experienced the programme directly – as employer, trainer or trainee.”

The alternative TOPP route involves training at an Approved Training Organisation (ATO) in commerce and industry and the TIPP route at an accountancy firm of Registered Auditors (RA).

TOPP is typically provided by large organisations like Edcon, Eskom, IDC, SARS, MTN, Investec, Nedbank, Sasol, Standard Bank and many other leading companies.

CAs(SA) who work in commerce have a great range of financial duties, with their positions demanding that they are intimately familiar with all aspects of their company’s financial management

They are expected to:

* Be knowledgeable on tax issues;

* Undertake financial accounting work;

* Manage the internal audit function;

* Provide cost and management accounting information and variance analyses; and

* Undertake special project work.

The breadth of exposure and experience that trainees gain in the programme makes it easy for CAs(SA) in commerce to move into other jobs should they decide on a different career direction in future years.

The minimum term of a CA(SA) following the TOPP route is 36 months and, since its inception, a total of 169 CAs(SA) candidates have obtained their designation through the programme.

The pass rate in SAICA’s Part II (Financial Management) specialisation qualifying examination has consistently been high. The reason cited is the extraordinarily impressive quality of training given to the trainees, which can, in turn, be ascribed to the stringent accreditation process applicable to SAICA’s Accredited Training Officers.

Companies wishing to participate in the TOPP programme can contact SAICA’s Education and Training division on 011 621 6634 or visit www.saica.co.za

Congratulations to the following training offices who were accredited in 2006:

Registered Training Offices – Training Inside Public Practice:

ASHTON CAs INCORPORATED

BDO SPENCER STEWARD INCORPORATED PORT ELIZABETH

BERNARD LEVINE BISMILLA & ASSOCIATES

BERNARD SHAW AUDITORS

BOSHOFF VISSER WESTERN CAPE INCORPORATED

BOSHOFF VISSER WESTERN-CAPE INCORPORATED (BELLVILLE)

BROCKBANK INCORPORATED

CLARK & ASSOCIATES

F SULEMAN & ASSOCIATES

FINS INCORPORATED

GERICKE & RADEMEYER KLERKSDORP

HAROON TAKOLIA

IJ SMITH & COMPANY INCORPORATED

LMD AFRICA CHARTERED ACCOUNTANTS INCORPORATED DURBAN

LMD AFRICA CHARTERED ACCOUNTANTS INCORPORATED DURBANVILLE

LMD AFRICA CHARTERED ACCOUNTANTS INCORPORATED EAST LONDON

LMD AFRICA CHARTERED ACCOUNTANTS INCORPORATED RIVONIA

LUMINA

MARAIS & SMITH CHARTERED ACCOUNTANTS

MICHAEL VAUSE RAW CHARTERED ACCOUNTANTS

MOORE BROTHERS & ASSOCIATES

NELSON FINANCIAL INC

NYZ AFRIPEAK

OWEN BRADLEY POWER INC

PLB CA (SA) INC

RAFT INCORPORATED

SERMAN MEYER INCORPORATED

SITHOLE INCORPORATED PRETORIA

STOKES & CO AUDITORS

TENK LOUBSER & ASSOCIATES TYGERVALLEY

TURNER CONRADIE CHARTERED ACCOUNTANTS (SA)

VAN DER WESTHUIZEN & ASSOCIATES

VIDWIL CHARTERED ACCOUNTANTS

WILLOUGHBY & ASSOCIATES CA(SA)

Approved Training Organisations – Training Outside Public Practice:

ALEXANDER FORBES LTD

ASSUPOL LIMITED

COCA COLA SOUTH AFRICA (PTY) LTD

ERNST & YOUNG (CAPE TOWN)

ERNST & YOUNG (DURBAN)

ERNST & YOUNG (JOHANNESBURG)

ITUMELE BUS LINES (PTY) LTD t/a INTERSTATE BUS LINES.

MERCHANTEC

MILLWARD BROWN

MONDI PACKAGING SA

PANGBOURNE SERVICES (PTY) LTD

SA PORT OPERATIONS

SASFIN BANK

IDC REFLECTS THE VIRTUE OF SKILLS DEVELOPMENT

As an active, self-financing development finance institution (DFI), the Industrial Development Corporation of SA Ltd (IDC) relies heavily on highly skilled Chartered Accountants [CAs(SA)], and has been participating in the TOPP programme since 2002.

The IDC is one of several companies operating in commerce and industry that has enthusiastically partnered with the South African Institute of Chartered Accountants (SAICA) to help alleviate the shortage of black CAs(SA) by participating in the Training Outside Public Practice (TOPP) programme.

TOPP is one of SAICA’s key strategic and leadership programmes, which offers those intent on obtaining the CA(SA) designation the opportunity to grow into diverse business-related fields such as financial, risk, operations and management accounting, corporate governance, internal auditing and many more.

The TOPP programme offers prospective CAs(SA) the choice between the conventional auditing route TIPP (Training Inside Public Practice) to becoming a CA(SA) and the financial management CA(SA) specialisation that is unique to TOPP.

TOPP involves training at an Approved Training Organisation (ATO) in commerce and industry, and TIPP at an accountancy firm of Registered Auditors (RA).

“The IDC is one of the largest employers of chartered accountants in South Africa,” says Gert Gouws, the IDC’s chief financial officer and TOPP training officer.

“Out of a staff complement of 520, about 50 are qualified CAs(SA). Therefore approximately 10% of our staff are CAs(SA); a further 10% are engineers – the two professions best represented in our corporation. Because, for us, the technical and financial disciplines are critical to the IDCs operating environment and the training of CAs(SA) and the future of the profession are key issues for the IDC.”

The TOPP programme equips the aspirant CA(SA) with multidisciplinary skills – crucial in today’s competitive economy. It gives prospective CAs(SA) exposure to the business environment, a factor that, unsurprisingly, appeals to potential employers.

Gouws highlights the IDCs bursary scheme aimed at nurturing students in the accounting and engineering disciplines.

“We want to attract learners from matric and grow them through the bursary programme for four years. We position TOPP seamlessly in the recruitment and development of new employees.”

TOPP’s primary objectives are to:

* Encourage greater entry into, and upward mobility within, the accountancy profession;

* Increase the supply of scarce skills by creating more professional training opportunities for potential CAs(SA); and

* Promote education, training and retention of key accounting professionals in organisations

In contrast, the advantages of training with a large firm under the TIPP programme include:

* Excellent technical grounding;

* A proven training system which is core to a firm in public practice;

* Training in an environment where colleagues are undergoing similar training;

* The ability to build valuable business contacts and networks;

* Training in a professional working environment, where mentoring is provided by senior CAs(SA) who understand the same technical jargon and systems with which trainees are familiar; and

* Training in an internationally accepted environment conducive to international secondments and transfers.

Registering for a training contract under the TIPP programme enables trainees to specialise in the audit function; a specialisation that is a prerequisite to performing the attest function, such as signing an audit report.

“TOPP is tailor-made for our requirements. TIPP is a good route, but is not directly relevant to our business requirements. We want to provide training that is more relevant to people’s developmental needs,” maintains Gouws.

“In terms of choosing which route to follow, if you are undecided, the TIPP route would be ideal, because that is where (especially with small firms) you can audit a specific sector. But if you know what you want, pursue the TOPP option,” advises Cornelius Mdluli, IDC’s TOPP Training Coordinator.

CAs(SA) who work in commerce have a great range of financial duties, with their positions demanding that they are intimately familiar with all aspects of their company’s financial management.

“A study to determine how many people qualify through TIPP and actually stay in the auditing route found that a low percentage of people stay in auditing and the rest follow the financial management route. People use TIPP as a stepping stone,” says Mdluli.

TOPP contains outstanding potential for career growth in a host of fields, particularly in the spheres of banking, insurance, manufacturing and mining.

Itumeleng Mataboge and Tshepo Manaka, trainee accountants at the IDC, say the TOPP programme has kept them on their feet. “We highly recommend TOPP.”

Mataboge was granted an IDC bursary and was subsequently recruited into the TOPP Programme, and says: “The IDC affords one exposure to various industries, which adds an extra dimension of excitement to the TOPP programme. There isn’t a dull day and there isn’t a dull hour.”

Manaka agrees: “What I’ve enjoyed most about my training period at the IDC is the scope afforded me to take my own initiative. In contrast, the audit environment is such that one is constantly monitored by seniors or managers. By way of illustration, I enjoy a high level of independence in the three important deals on which I am currently working.”

INVESTEC BANKS ITS FUTURE LEADERS THROUGH TOPP

Many banks require high quality professionals to prepare their financial statements and to provide financial products and advice to businesses and individuals.

As an international specialist banking group providing a range of financial products and services to its client base, Investec has actively been participating in the TOPP programme since 1997, giving those intent on obtaining the Chartered Accountancy designation the opportunity to develop their technical and professional skills levels.

The philosophy of Investec’s TOPP programme is to attract and train quality graduates who can be employed in various business units. The programme offers articled clerks a three-year training contract in the financial services environment, with exposure to investment banking, adhering to the guidelines issued by the SAICA and enabling the training of CAs(SA) who understand the group’s environment and are later integrated into the group.

“We recognised that the programme was an opportunity to attract high calibre accounting graduates and that we could contribute to their practical and technical development, with the objective of integrating and retaining them in the organisation,” says Bill McClure, Investec’s TOPP training officer.

The Investec programme offers trainees challenging opportunities that provide them with an in-depth perspective of the financial services industry, whilst building effective relationships with both senior employees and their peers. The programme comprises a combination of intensive simulated and practical training and six monthly rotations to major business units in South Africa, the United Kingdom and Europe.

“Investec is committed to the ongoing development and growth of individuals. We select people with the skills and characteristics to match the distinctive culture of the organisation. TOPP is one of our flagship graduate development programmes and trainees make a valuable contribution to Investec’s performance.” says McClure.

To meet SAICA’s core experience requirements for technical and professional skills, Investec’s TOPP programme offers trainees an appropriate spread of work, ensuring a relevant range, depth and continuity of experience to meet the required levels of competence.

‘There is still a significant opportunity for the programme to grow. It is encouraging to see that a number of large new employers have begun to participate in the TOPP programme, so presumably in two to three years time we will see the benefit,” maintains McClure.

Investec recently produced the top candidate in the form of Rowan Lang, who passed with honours in Part II of the financial management qualifying examinations (QE II).

“We are very proud of Rowan; his achievement has given our programme great credibility. The standard of our trainees is very high, and I believe that any of our candidates who wrote the QEII exam could have achieved honours,” says McClure.

Sharing her experiences in the TOPP programme, Fezeka Sijaji, a second year trainee at Investec, says: “I have currently rotated into Internal Audit and my typical day would be similar to those who are doing the TIPP programme. The only difference is that the audits are internal.”

Another trainee, Pravesh Sunker, who is in his final year of training, maintains that lack of buy-in into the TOPP programme by some Accredited Training Organisations (ATOs) stifles trainees’ growth.

“The TIPP route is the safe and conservative one to take for those who are still perplexed about following either of the routes, but the TOPP programme is for highly motivated and ambitious individuals who end up as entrepreneurs.”

“I hope to build a career at Investec. The culture is one that promotes creative and innovative thinking. I interact with extremely talented individuals and am confident that such interactions will stand me in good stead for the future,” says Sunker.

The minimum entry requirements for the Investec TOPP programme is a Certificate in the Theory of Accounting (CTA), with consistently good academic results. Any offer made to graduates is subject to passing the CTA at the end of that year.

To apply for training in Investec’s TOPP programme, prospective trainees must send their application forms, full CV and academic records to the bank’s head office in Sandton or call (011) 286 7086.

EDCONs TOPP BREEDING GROUND

A top 20 JSE-listed retail giant, Edcon has been participating in the TOPP programme since TOPP was launched in 1998. It is currently training five aspirant CAs(SA), and admittedly they are heavily reliant on highly skilled CAs(SA) to oversee its well structured and managed financial affairs.

Accordingly, Edcon demands that prospective CAs(SA) acquire the knowledge and the tools required to plan, predict and steer its profitably into the future.

A prime conduit for doing so is the TOPP programme.

Odet Nevin, Edcon’s Group Accounting Manager and TOPP Training Officer, says Edcon invested in TOPP with the aim of retaining the trainees once they qualify as CAs(SA), because by then, they would have become familiar with Edcon’s commercial requirements and culture.

“Coming from an auditing route myself, I believe TOPP is more challenging than TIPP (Training Inside Public Practise). TOPP involves three years of commercial experience, whereas the TIPP trainees are focused on auditing.

“Our experience has demonstrated that TIPP qualifiers find it more difficult to adjust to our business than their TOPP counterparts; a phenomenon that offers them the leading edge in terms of our commercial requirements.”

For these reasons, business has enthusiastically partnered with SAICA to contribute to developing the economy’s skills base.

“It is invariably difficult to fill highly specialised senior positions. That’s why we nurture our TOPP students, who, once qualified, are able to fill such vacancies, which, in turn, saves us the time and trouble of looking for people outside the organisation,” says Nevin.

The trainee accountants rotate through Edcon’s individual businesses, including treasury, tax and other divisions, to prepare financial statements and many other tough financial duties.

“The recruitment process of finding the right trainee candidates is difficult,” says Nevin. “Usually the quality of CVs we receive falls short of our standards. We look at the academic record, for people who are willing to take initiative, for analytical thinkers, for all-rounders, and for those willing to learn.’

Mpho Mokete and Tsundzukani (Tsu) Mhlanga, trainee accountants at Edcon, started their training with the group in 2006. Mpho studied his BCom Accounting degree at Rhodes University and Tsu studied her degree at the University of Natal.

Both are happy with their exposure to various financial duties, among them Edcon’s individual businesses.

“With TOPP there is never a boring day; never too much routine. You get exposed to a variety of disciplines. It is hugely fulfilling to present financial information that is relied upon by various group executives,” says Mhlanga.

Mokete agrees: ‘There’s a measure of routine in performing financial functions like financial accounting. But that’s the exception. For example, I was recently involved in filing tax returns of various divisions and attending presentations with the group’s financial executives, so once I’ve completed all my articles, I will know exactly how each function of the business works and where I can best fit in.”

The minimum term to be served following the financial management specialisation route traineeship is 36 months.

“If you are excited by auditing, follow TIPP; if you are excited by financial management, follow TOPP. It’s all about personal choice; where you see yourself and where you want to go,” says Mhlanga.

EDCON currently has 16 CAs(SA) in its employ.

ESKOMs ELECTRIFYING TOPP PROGRAMME

Eskom’s has been involved in the TOPP programme since 1999 and have to date produced 10 qualified CAs(SA).

Linda Yanta, Eskom’s General Manager: Corporate Audit, who is also responsible for Eskom’s TOPP programme, comments: The war for talent is real. Unless our organisations respond and take action now, we will lose that talent and skills base. It is not good enough to hope you will get your talent from somebody else.

“You have to nurture people and acquaint them with your own processes and your own way of doing things. The conventional sources of supply are simply not enough. The pipeline is insufficient and we have to do something about it.”

The TOPP programme contributes to the accountancy profession by recruiting and developing trainees, many from previously disadvantaged backgrounds, in order to alleviate South Africa’s shortage of CAs(SA).

Amanda Bergh, Eskom’s Senior Audit Manager: Generation, and Eskom’s TOPP training co-ordinator, observes: “A lot of our chartered accountants were qualifying through the auditing route (TIPP), but ended up performing financial management functions. That’s the reason we chose to invest in the TOPP programme.

“Some of the trainees are able to assume managerial positions after completing their training. They build up impressive networks and a knowledge base, as a result of which they become familiar with Eskom’s culture.”

Monique Grunewald, a trainee chartered accountant at Eskom, agrees: “For me one of the benefits of TOPP is that you are constantly learning, adapting and growing. This is what makes the programme dynamic and interesting. You’re not doing the same thing year after year.”

TOPP offers prospective CAs(SA) another alternative; you can follow either the conventional auditing route TIPP (Training Inside Public Practice) to become a CA(SA), or the financial management CA(SA) specialisation that is unique to TOPP.

“I was lucky enough to be seconded to TIPP for about three months, a move that enabled me to compare the two,” Grunewald recalls. “In TIPP you had an audit programme and could see exactly what you did in previous years. In TOPP you are thrown into the deep end. The learning curve as to how to perform certain tasks is steep.”

Anveel Rajbansi, another trainee accountant at Eskom, says that the TOPP structure gives trainees a fundamental understanding of the spheres in which they can specialise.

“Being in TOPP you get to meet dynamic financial and technical people. You are exposed to competent financial managers and you develop your business technical skills as well as financial technical skills. The knowledge and experience of these people brushes off onto us.”

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