FINANCE FOR NON-FINANCIAL MANAGERS MODULE EMERGING MANAGERS PROGRAMME (EMP) Mr Steven Msomi Ohpis Nevets Investments (Pty)Ltd

Similar documents
Kingdom of Swaziland. Public Finance Management Bill

PFMA Introduction CPD Public Sector April 2018

FINANCIAL MANAGEMENT OF PARLIAMENT BILL

I n t r o d u c t i o n

4/7/2015. Group. Governance and Legislation

Policy on Avoidance of Irregular, Unauthorised, Fruitless and Wasteful Expenditure

GEORGE MUNICIPALITY POLICY ON UNAUTHORISED, IRREGULAR OR FRUITLESS AND WASTEFUL EXPENDITURE. Approved by Council on 27 May 2015

FINANCIAL MISCONDUCT POLICY

STEVE TSHWETE LOCAL MUNICIPALITY MP

Fraud and consequence management

PUBLIC FINANCE MANAGEMENT SEMINAR. Overview of the PFM Regulations

SOL PLAATJE MUNICIPALITY

1 July Guideline for Municipal Competency Levels: Chief Financial Officers

MUNICIPAL SUPPLY CHAIN MANAGEMENT MODEL POLICY

WEST COAST DISTRICT MUNICIPALITY DRAFT DELEGATION REGISTER

Government Gazette REPUBLIC OF SOUTH AFRICA. AIDS HELPLINE: Prevention is the cure

Unit Standard : Apply the principles of budgeting within a municipality. Karel van der Molen

MFMA. Audit outcomes of municipalities

FRUITLESS AND WASTEFUL EXPENDITURE

NATIONAL TREASURY MFMA IMPLEMENTATION PLAN - TEMPLATE (Medium Capacity Municipality Only)

Government Gazette REPUBLIC OF SOUTH AFRICA. Vol. 550 CapeTown 28 April 2011 No

Province of Alberta ALBERTA HOUSING ACT. Revised Statutes of Alberta 2000 Chapter A-25. Current as of July 1, Office Consolidation

Government Gazette REPUBLIC OF SOUTH AFRICA. Vol. 478 Cape Town 1 April 2005 No

Treasury Regulations for departments, trading entities, constitutional institutions and public entities

LOCAL GOVERNMENT FINANCE 2

NATIONAL TREASURY STRATEGIC PLAN 2013/17 PRESENTATION TO PARLIAMENTARY FINANCE COMMITTEES

Audit Committee Reporting

WEST POKOT COUNTY GAZETTE SUPPLEMENT

IN THE LABOUR COURT OF SOUTH AFRICA

Terms of Reference and Annual Planner for National and Provincial Government Audit Committees

RT THE APPOINTMENT OF SERVICE PROVIDERS FOR AN INTEGRATED FINANCIAL MANAGEMENT AND INTERNAL CONTROL SYSTEM FOR LOCAL GOVERNMENT

That Council pass an Indemnification By-law in the form comprising Attachment 1 to Report FIN

ESKOM One Year Application 2018/19

Report of the Auditor-General

An initiative of the South African National Treasury

PFMA Accountability and remedies to address transgressions and poor performance

CONSOLIDATED ANNUAL FINANCIAL STATEMENTS 2017

FINANCIALS South African Broadcasting Corporation [SOC] Ltd SABC Annual Report

THE NATIONAL WAGE CONSULTATIVE COUNCIL BILL (No... of 2016) Explanatory Memorandum

SABC Presentation to Standarding Committee on Public Accounts

The Central Bank of The Bahamas

12I. Additional investment and training allowances in respect of industrial policy projects. (1) For the purposes of this section

THE FINANCIAL REPORTING ACT 2004

LEGAL SUPPLEMENT 311

MAURITIUS INSTITUTE OF TRAINING AND DEVELOPMENT ACT 2009

GOODS AND SERVICES TAX ACT

CHAPTER 53:03 BOTSWANA UNIFIED REVENUE SERVICE

LABUAN OFFSHORE BUSINESS ACTIVITY TAX ACT 1990 PART II CHARGEABILITY TO TAX. Tax Based on Return. Tax Charged upon Election

Financial Supervision Authority Act. Passed 9 May 2001 (RT 1 I 2001, 48, 267), entered into force 1 June 2001, amended by the following Act:

SCOPA Review of the 2016/2017, Irregular, Fruitless and Wasteful Expenditure and Accruals for the South African Police Service

Briefing to the Parliamentary Portfolio

GOVERNMENT GAZETTE OF THE REPUBLIC OF NAMIBIA. N$4.00 WINDHOEK - 29 December 2015 No. 5911

NATIONAL HOUSING FUND ACT

CENTRAL ENERGY FUND ACT 38 OF 1977

IPSAS WORKSHOP. Key Provisions of the PFM Act 2012 and Mwongozo Code of Governance. Mountain Breeze Hotel - EMBU, 15 th -16 th June 2017

POLICE AND CRIMINAL EVIDENCE BILL 2004 A BILL. entitled "BERMUDA DEPOSIT INSURANCE ACT 2010

Annexure C Section 18A of the Income Tax Act, 1962

Ch. 35 TAX EXAMINATIONS AND ASSESSMENTS CHAPTER 35. TAX EXAMINATIONS AND ASSESSMENTS

HOUSING ACT 107 OF (English text signed by the President) as amended by

UNAUTHORISED EXPENDITURE

Short Learning Programmes

Public Private Partnerships. The South African Experience

Quality-improvement Information Protection Act

FASHION AND DESIGN INSTITUTE ACT Act 11 of July 2008 (unless otherwise indicated) FASHION AND DESIGN INSTITUTE ACT PART I PRELIMINARY

VIRGIN ISLANDS BANKS AND TRUST COMPANIES (AMENDMENT) ACT, 2006 ARRANGEMENT OF SECTIONS

THE FINANCIAL REPORTING ACT 2004

VIRGIN ISLANDS ECONOMIC SUBSTANCE (COMPANIES AND LIMITED PARTNERSHIPS) ACT, 2018 ARRANGEMENT OF SECTIONS

FRAUD PREVENTION POLICY

Commissioners for Revenue and Customs Bill

CLARIFICATION OF CERTAIN SECTIONS OF THE FINANCIAL INTELLIGENCE CENTRE ACT

FINANCIAL INTELLIGENCE CENTRE ACT (FICA)

Evaluating and Reporting: Accounting for Performance

ACT. ii Supplement to the Sierra Leone Gazette Vol. CXLVII, No. 11 PART IV ADMINISTRATIVE PROVISIONS. dated 3rd March, 2016

STATE OF SAINT CHRISTOPHER, NEVIS AND ANGUILLA THE HOLIDAYS WITH PAY ACT, No. 19 of 1968.

Foreign Investments Act 27 of 1990 (GG 129) brought into force on 7 July 1992 by Proc. 19/1992 (GG 433)

DRIVING NEW FRONTIERS FOR SUSTAINABLE GROWTH

THE UNIT TRUST CORPORATION OF TRINIDAD AND TOBAGO ACT, Arrangement of Sections PART I PART II PART III

UNEMPLOYMENT INSURANCE CONTRIBUTIONS ACT NO 4 OF 2002

PUBLIC FINANCE MANAGEMENT ACT

THE SPECIAL CONTRIBUTION FOR THE DEFENCE OF THE REPUBLIC LAWS 1 (AS AMENDED, 2003)

DRIVING NEW FRONTIERS FOR SUSTAINABLE GROWTH CONSOLIDATED ANNUAL FINANCIAL STATEMENTS

BANKING ACT 2003 As amended 2004 ANALYSIS

Title: Anti-Bribery Policy

NATIONAL RESEARCH FOUNDATION ACT 23 OF 1998

Namibia Special Risks Insurance Association Act 5 of 2017 (GG 6420) came into force on date of publication: 27 September 2017 ACT

Legal Alert for March 2010? Housing Laws in Nigeria Part 2

LEGAL SUPPLEMENT. I assent

Date of commencement: 1st January, Date of Assent: 11th December, 1968.

Environmental Investment Fund of Namibia Act 13 of 2001 (GG 2669) brought into force (retroactively) on 1 May 2005 by GN 266/2013 (GG 5314)

Republic of Namibia. Foreign Investment Act

STRATEGIES FOR TRANSFORMATION SUCCESS. Ownership in AgriBEE

BUS INDUSTRY EMPLOYEES WELFARE FUND ACT BUS INDUSTRY EMPLOYEES WELFARE FUND ACT. Revised Laws of Mauritius. Act 36 of November 2003

Sound public financial management supports aggregate control, prioritisation,

REPUBLIC OF VANUATU INTERNATIONAL BANKING ACT NO. 4 OF Arrangement of Sections

CHAPTER 168 SUPPLEMENTARY ALLOWANCE OF WORKERS

Vihiga County Disaster Management Bill, 2018 PART I - PRELIMINARY

Fraud prevention Plan

KIAMBU COUNTY YOUTH ENTERPRISE DEVELOPMENT FUND BILL, 2013 ARRANGEMENT OF CLAUSES

(2) This Policy makes explicit the University's requirements in regards to the management of:

Since the 1990s Morocco has been pursuing reforms that call for liberalising

Transcription:

FINANCE FOR NON-FINANCIAL MANAGERS MODULE EMERGING MANAGERS PROGRAMME (EMP) by Mr Steven Msomi Ohpis Nevets Investments (Pty)Ltd

Ohpis Nevets Investments: who we are?

To Be Covered

To Be Covered 1. FINANCIAL STATEMENTS o ITHALA DELOPMENT FINANCE CORP o ITHALA SOC 1. South Africa s 2014/5 Budget 2. RATIO ANALYSIS 3. FOREX Rate Determination o Inflation o Interest Rates 3. Capital Structure 4. Budgeting Process 5. LEGISLATION ( PFMA, FICA, FAIS, NCA, BASEL III)

THE TRAP:

30% RISK:RETURN RELATIONSHIP E(Rp) 18% Capital Market Line (CML) 16% 12% 6% 0 8% 12% 14% 22% RISK ( )

THE INVESTMENT BACKGROUND An investment can be defined as postponed consumption OR An investment is the sacrifice of certain present value for future value

B. THE INVESTMENT BACKGROUND Three main attributes of an investment: time inflation risk

LOCATION (Risk & Return Line)

SAVING & INVESTMENTS available investment vehicles property cash Investment vehicles choice bonds equities ISITOKOFELA

B. THE INVESTMENT BACKGROUND diversification Never keep all your eggs in one basket!

C. THE ECONOMY business cycles peak through through

MASLOW Hierarchy of Needs:

FINANCIAL Markets:

RATING Agencies:

Tax Revenue (2015/6):

Budgeting, 2015:

Budget Estimates:

EDUCATION Budget:

SOCIAL PROTECTION Budget:

FOREX Rate Determination:

FOREX Determination: INFLATION If two countries that are engaged in trade with one another, the one with higher inflation rate between the two, is the one whose currency is expected to weaken within medium term.

FOREX Determination: INTEREST RATES If two countries that are engaged in trade with one another, the one with higher interest rate between the two, is the one whose currency is expected to strengthen within short to medium term.

Capital Structure: It is vitally important for a business to determine the ratio between debt & equity in its funding Debt is considered cheaper to certain level. After that level, higher levels of debt become risky. Please explain how this happens?

RATIOS Formulae:

Balance Sheet:

Income Statement:

ADDITIONAL Infor: For market value measures we assume that Cathula has 35 mln shares issued, which sold for R88 per share at the end of the year. If we recall Cathula net income was R385 mln, we can calculate EPS, PE & Market to book ratios.

IDFC Income Statement- 2015

IDFC Income Statement- 2015

IDFC Balance Sheet 2015

IDFC Balance Sheet 2015

UW FINANCIALS

THE BANKING LICENCE ISSUE:

THE BANKING LICENCE ISSUE:

TRAINING NUMBERS:

STATS: OPERATIONS

STAFF NUMBERS:

PROPERTY, HIGHLIGHTS:

BUSINESS FINANCE:

BUSINESS FINANCE:

LEGISLATION

THE STRUCTURE:

STRATEGY:

ITHALA SOC

ITHALA SOC THE PERFORMANCE

ITHALA SOC THE PERFORMANCE

BALANCE Sheet, 2014 &2013 NON-CURRENT LIABILITIES & RESERVES

INCOME Statement, 2014 &2013 REVENUE

ITHALA SOC THE FINANCIALS

CASH FLOW Statement, 2014 &2013 FROM OPERATIONS & INVESTING

ITHALA SOC THE BALANCE SHEET

MOSES Mabhida,2014 &2013

MOSES Mabhida,2014 &2013 2014 2013 REVENUE R78 000 000 R73 000 000 EXPENDITURE R181 000 000 R224 000 000 DEFICIT R103 000 000 R151 000 000

BUDGTING, The Municipality THE POLICY MUNICIPAL FINANCE MANAGEMENT ACT, ACT 56, 2003 The Council must yearly approve a budget; The Mayor must present the budget to council (Subsection-2 of Act) This should be 90-days before start of Budget Year; The budget must address diverse community needs; The Budget must accommodate Macro-economic & Fiscal policies of SA; Major Players in Budgeting:- o THE COUNCIL o THE MAYOR o ACCOUNTING OFFICER (MM) o CHIEF FINANCIAL OFFICES o SENIOR MANAGERS o THE COMMUNITY

BUDGTING, The Municipality THE PRINCIPLES Cannot budget for a deficit Revenue projections need to be realistic THREE year budget needs to be prepared and annually approved by the council (MEDUIM TERM REVENUE & EXPENDITURE FRAMEWORK) MTREF must always be within Municipal Integrated Development Plan;

BUDGTING, The Municipality THE PREPARATION PROCESS FORMULATION OF THE BUDGET PUBLIC PARTICIPATION PROCESS APPROVAL OF THE BUDGET PUBLICATION OF THE BUDGET SERVICE DELIVERY & BUDGET IMPLEMENTATION PLAN

PFMA ACT 1, 1999 Focus on outputs & responsibilities Flexibility with accountability Clarity of role of accounting officer Let the managers manage, But hold them accountable

PFMA THE AIMS OF PFMA To regulate financial management To ensure all revenue, expenditure, assets, and liabilities are managed efficiently and effectively; To provide for the responsibilities of persons entrusted with financial management; Applicable to all public entities, except the Reserve Bank, Auditor General, higher education institutions and local authorities (own acts)

PFMA KEY OBJECTIVES OF PFMA Modernise the system of financial management Enable public sector managers to manage, but at the same time to be accountable Ensure timely provision of quality information To eliminate waste and corruption in the use of public assets

PFMA NATIONAL TREASURY, SEC 6(1) &(2) Promote and enforce transparency and effective management in respect of revenue, expenditure, assets and liabilities Must prescribe uniform Treasury norms and standards Must enforce the PFMA and any prescribed norms and standards May assist departments in building capacity for efficient, effective and transparent financial management May investigate any system of financial management and internal control in any department

PFMA RESPONSIBILITIES OF ACCOUNTING OFFICERS Must ensure that the department has and maintains Effective and efficient systems of financial and risk management and internal control A system of internal audit under control of an audit committee An appropriate procurement and provisioning system which is fair, equitable, transparent and cost effective Responsible for the effective, efficient, economical and transparent use of resources of the department Must take effective and appropriate steps to prevent unauthorized, irregular and fruitless and wasteful expenditure and losses resulting from criminal conduct Must take effective and appropriate disciplinary steps against any official who Commits an act which undermines the financial management and internal control systems Makes or permits an unauthorized, irregular or fruitless and wasteful expenditure Delegate in writing any powers or duties to an official in the department

PFMA RESPONSIBILITIES OF OTHER OFFICIALS Must ensure that the system of financial management and internal control established for that department is carried out Is responsible for the effective and efficient use of financial and other resources Must take effective and appropriate steps to prevent unauthorized, irregular and fruitless and wasteful expenditure Is responsible for the management, including safeguarding of the assets within that officials responsibility

PFMA FINANCIAL MISCONDUCT An accounting officer commits an act of financial misconduct if willfully or negligently fails to comply with a requirement of sec 38 An official of a department to whom a power or duty is assigned in terms of section 44 commits an act of financial misconduct if willfully or negligently fails to exercise that power or perform that duty An official of a treasury to whom a power or duty is assigned in terms of section 10 commits an act of financial misconduct if willfully or negligently fails to exercise that power or perform that duty An accounting officer is guilty of an offence and liable on conviction to a fine or to imprisonment for a period not exceeding five years, if that accounting officer willfully or in a grossly negligent way fails to comply with a provision of section 38

PFMA THE PROCUREMENT SYSTEM Accounting Officer must ensure that his department has and maintains an appropriate procurement and provisioning system (Sec 38) Accounting Officers must accept responsibility and accountability for AD HOC tenders Accounting Officer must submit procurement procedures to national treasury for accreditation Preferential Procurement Policy Framework Act (no 5 of 2000) requires that criteria to be applied during evaluation and adjudication must form part of tender documents. Procurement reforms aims to strengthen accountability, ensure a fair and open system and to prevent corruption

WACC:

IN CLOSING We simply attempt to be fearful when others are greedy, and to be greedy when others are fearful

PLEASE THINK THIS OVER Anything that CANNOT go on forever WILL END

QUESTIONS: