EY NATIONAL SAICA TRAINING CONTRACT MANUAL
OPERATING PROCEDURES
Key timelines and protocols
The information in this manual is compiled and revised regularly to serve as a guideline for ensure compliance with the SAICA regulations. It is not intended to be an exhaustive manual, but rather guidance in key areas
The manual was compiled to provide guidance to the various administrators and to future training officers as a manual to address key interventions that will ensure the overall compliance with the SAICA training regulations, but also to ensure that the competency assessment system (LTS) that the firm operates is support by a clear protocol.
Thismanual deals with the following matters:
Key contact persons – SAICA and IRBA
Key contact persons – EY
Key dates during training contract
Responsibilities of trainees
Responsibilities of training officer
Annual calendar
Important reminders
E-mail proto-types for annual circulation
Notes and lessons learnt
Office accreditation status and lessons learnt
TCMS notes and reminders
Registering / Discharge / RPL
EY National SAICA training contract manual
Key contact persons – SAICA and IRBA
The key individuals that we interact with from outside the firm include:
-Adri Kleynhans: SAICA project director for training and manages most key SAICA matters that affect offices nationally.
-Beverly Herbst: 011 621 6608
-Pamela Mahlangu: 08610 SAICA (72422)
-Contact Centre : 08610 SAICA (72422)
Key contact persons – Ernst & Young
The key individuals within the firm that is concerned with SAICA training contracts are:
Central
Sarel StrydomNational training officer
Susan SitholeNational TCMS and HR administrative officer
David van CollerNational subject matter expert
Michelle GorrieNational subject matter expert
Regional
Anthony CadmanStaff partner – Cape Town
Leanne AitkenAssurance HR - Cape Town
Jane OlivaStaff partner - Durban
Logan PillayStaff champion - Durban
Jeremy BeukesAssurance HR - Durban
Donovan van StraatenStaff partner – Bloemfontein
Esri du BruynAssurance HR – Bloemfontein
Edelien BooysenStaff champion - Bloemfontein
Mark BiggsStaff partner – Port Elizabeth & George
Stefan MeiringStaff champion – Port Elizabeth
Other roles within the firm
Myhan NaidooRepresented on TRECO at IRBA
Donovan van StraatenChairman of Board at SAICA (Free State & NW)
Sean KerrGraduate recruitment partner
Key dates during training contract
The key dates during the training contract period are:
01 JanuaryTraining contract start date
01 FebTraining contract inductions
01 Feb to 1 June Training contract registrations on TCMS
1 Jan – 30 JuneMinimum of 1 TSR and PSR every 2 months, 3 by 30 Jun
30 JuneStart of ANA 1 by trainee and counsellor
31 JulyANA 1 reviewed and closed on LTS
15 AugustRegistered Assessor Review finalised on ANA 1
01 OctoberTraining Contract Discharge process opens on TCMS
01 JulyTraining Contract Discharge process initiated
1 July – 10 DecemberMinimum of 1 TSR and PSR every 2 months, 3 by 15 Dec
10 DecemberStart of ANA 2 by trainee and counsellor
30 DecemberTraining Contract end date (3rd years)
31 JanuaryANA 2 reviewed and closed on LTS
15 FebruaryRegistered Assessor Review finalised on ANA 2
Responsibilities of the trainees
The trainee must fulfil his/her duties and responsibilities as set out in Annexure 7 and the training contract. Failure by a trainee to perform any of the duties and responsibilities referred to in Regulation may constitute an offence as determined by the Professional Conduct Committee.
A trainee accountant must be in the employ of a training office and must work sufficient hours per day to enable him to achieve the prescribed work attendance and core experience hours as defined in Regulation. The requirement for a trainee accountant to work overtime must be regulated by the employment contract and must comply with the provisions of applicable legislation.
2.1. To diligently serve the training office in the profession of a chartered accountant and registered auditor;
2.2. To diligently pursue his studies in the theory and practice of the profession of a chartered accountant and registered auditor and that he will notify the training officer immediately he/she ceases to be registered for a course that would lead to the eventual award of a Certificate in the Theory of Accountancy or equivalent;
2.3. During the currency of his training contract, to not engage in any other business or occupation without the express written authority of the training officer;
2.4. To at all times keep the affairs of the training office and its clients confidential and not breach any codes of professional conduct, disciplinary rules or by-laws that apply to the profession of a chartered accountant and, if applicable, a registered auditor;
2.5. To comply with any training office policies and procedures;
2.6. To complete any timesheets and/or other assessment forms supplied by the training officer to record training experience;
2.7. To agree that the training officer will be entitled, and is authorised to, disclose to SAICA any circumstances which in the opinion of the training officer may constitute improper conduct on the part of the trainee accountant. To further agree to the training officer making available to SAICA all information regarding disciplinary procedures in the training office in which the trainee may have been involved, including the record of those procedures; and
2.8. Prior to leaving the training office and within 30 days after completion of the duration of the training contract, to apply for the training contract to be discharged.
Responsibilities of the training officer
DUTIES OF A TRAINING OFFICER
8.1. The training officer must fulfil his duties and responsibilities as set out in Annexure 7 and in the trainingcontract.
8.2. Failure by a training officer to perform the duties and responsibilities as set out in these Regulations and inthe training contract may constitute an offence and may lead to the de-accreditation of the training office.
RESPONSIBILITIES OF SENIOR MANAGEMENT IN RESPECT OF THE SAICA TRAINING
PROGRAMME
9.1. Although a registered training officer is required to carry out the duties ascribed to him in these
Regulations, he is not solely responsible for the training of trainee accountants employed at the trainingoffice.
9.2. The training of trainee accountants employed at the training office is the joint responsibility of the entiremanagement of that training office.
9.3. Senior managers, partners or directors or an authorised person must –
9.4. immediately notify SAICA of an imminent change in the circumstances that could affect the training oftrainee accountants in an accredited training office; and
9.5. appoint and register a replacement training officer on the prescribed form, when and if the need arises.
1.1. To give the trainee accountant every reasonable opportunity to obtain sufficient exposure to the prescribed competencies, as defined by SAICA from time to time, to enable him to apply his knowledge in a variety of relevant situations;
1.2. To train the trainee accountant in the standards of professionalism and ethics, which are expected of chartered accountants and registered auditors;
1.3. The training officer will comply with his/her duties in terms of all applicable legislation, including
1.3.1. The Basic Conditions of Employment (Act 75 of 1997)
1.3.2. Any applicable determination made in terms of section 18(3) of the Skills Development Act (Act 97 of 1998)
1.3.3. The Labour Relations Act (Act 66 of 1995)
1.3.4. The Employment Equity Act ( Act 55 of 1998)
1.3.5. The Occupational Health and Safety Act (Act 85 of 1993), and
1.3.6. The Compensation of Occupational Injuries and Diseases Act ( Act 130 of 1993)
1.4. The training officer must provide the appropriate facilities to train the trainee accountant;
1.5. The training officer must provide the trainee accountant with adequate supervision;
1.6. The training officer must conduct on the job assessment, or cause it to be conducted;
1.7. The training officer must keep up to date records of training and periodically discuss the trainee
accountant’s progress with him/her;
1.8. The training officer must advise the trainee accountant of:
1.8.1. the terms and conditions of his/her employment contract
1.8.2. the training office policies and procedures
1.9. the training officer must apply the same disciplinary, grievance and dispute resolution procedures to the
trainee accountant as to any other employee;
1.10. the trainee accountant must be employed in the office of the firm that has been accredited by SAICA, as aregistered training office;
1.11. the training officer must fulfil the obligations imposed on him/her by SAICA, pertaining to the training of atrainee accountant;
1.12. the training office must bear the cost of fees payable to SAICA in terms of the training contract;
1.13. the training officer must inform SAICA in writing of circumstances where, in the opinion of the trainingofficer the trainee accountant has conducted himself/herself in a manner that may constitute improperconduct as defined in the Regulations or in the disciplinary rules, code of conduct or by-laws prescribed bySAICA and IRBA from time to time;
- 1.14. the training officer must make available to SAICA all documents regarding the alleged improper conduct ofthe trainee accountant, including the record of any disciplinary procedures in the training office in which thetrainee may have been involved.
The responsibilities of staff members who supervise trainees
The primary supervisory responsibilities of staff on engagements are that of the engagement managers. The engagement managers are responsible for the following with each engagement:
- Discuss with the trainee the primary expectations in line with the SAICA training contract requirements
- Determine if there are any factors that would hinder the execution of the procedures
- Set up each trainee through a thorough explanation and induction to the requirements of the relevant audit section
- Regular monitoring and assessment of progress through the audit
- Conduct a proper engagement review on MDS and competency assessment on LTS of the procedures that was conducted by the trainee
- Provide timely and comprehensive feedback and development areas. Ensure the trainee has a proper understanding of the development requirements
- Managers which are also counselors should continuously monitor the progress of trainees (counselees) to monitor SAICA compliance and assess development and progress
- to manage and counsel trainees as they navigate through their training contracts
- to assess if your counsellee complies with the LTS requirements as stated above
- to assess if your counsellee is meeting all TSR & PSR competencies and that competencies will be met by the end of the training contract
- to assess if your counsellee will meet their core hours (3,600 hours for 3 year contract)
- to timely intervene if a training contract may need to be extended (per SAICA a trainee needs to be informed more than 6 months before possible extension)
An important part of Ernst & Young's ability to sign off training contracts relates to LTS compliance as part of the SAICA regulations. The main compliance areas being:
- ·at least 1 completedTSR and PSR(Technical and Professional Skills Review) every 2 months totalling a minimum of 3 in every 6 month period to be included in the ANA
- ·a timely signed off and fully completed ANA at the end of every six months for June and December – 31 July and 31 January (signed by trainee and counsellor) and 15 August and 15 February for the registered assessor review on LTS.
The reporting lines of trainee accountants
Each trainee is allocated a counselor who is the primary contact to grow, mentor and enhance the development of the trainee.
Each trainee would report to the relevant supervisor or engagement manager to assess the growth and development of the trainee. At the commencement of each engagement, the trainee should ensure that the manager and themselves conduct the following:
- Discuss with the trainee the primary expectations in line with the SAICA training contract requirements
- Determine if there are any factors that would hinder the execution of the procedures
- Set up each trainee through a thorough explanation and induction to the requirements of the relevant audit section
- Conduct a proper competency assessment review on LTS of the procedures that was conducted by the trainee
- Provide timely and comprehensive feedback and development areas. Ensure the trainee has a proper understanding of the development requirements
- Trainees would have full access to engagement partners and the training officer to discuss any matters which the trainee deem necessary.
- An important part of Ernst & Young's ability to sign off training contracts relates to LTS compliance as part of the SAICA regulations. The main compliance areas being:
- ·at least 1 completedTSR and PSR (Technical and Professional Skills Review) every 2 months totalling a minimum of 3 in every 6 month period to be included in the ANA
- ·a timely signed off and fully completed ANA at the end of every six months for June and December – 31 July and 31 January (signed by trainee and counsellor) and 15 August and 15 February for the registered assessor review on LTS.
Appeals process for trainees
LTS makes use of the SAICA decision tree for the PSR and TSR to assign a competency rating. Trainees do a self-assessment rating via the decision tree and reviewers will either accept the rating or disagree with that rating. Should a manager disagree with the trainee’s rating and elect a different rating from the decision tree a rating difference process will be initiated by LTS. The reviewer is forced to input comments/motivation as to why there is a rating difference and sign the step off. The rating difference will then revert back to the trainee has the option of accepting the difference and motivation. Should the trainee not accept the difference this will be noted as part of the ANA at which time it will be discussed with his/her counsellor (evaluator).
Throughout the process noted above the allocated registered assessor, national subject matter expert or national training officer can be contacted to mediate the rating difference in order to allocate the correct competency rating. Registered Assessors have the authority to ask LTS and or reviewers to edit comments or ratings after the outcome of this appeals and mediation process.
Trainee staff has an open line to the training officer as well and can even contact SAICA in more extreme circumstances. Overall trainees have many avenues and mechanisms to deal with arbitrary issues.
The effective management of the training contract and administration oversight
Each regional administrator would on a regular basis review LTS to ensure that the SAICA requirements are continuously enforced. These include:
- ·at least 1 completedTSR and PSR (Technical and Professional Skills Review) every 2 months totalling a minimum of 3 in every 6 month period to be included in the ANA
- ·a timely signed off and fully completed ANA at the end of every six months for June and December – 31 July and 31 January (signed by trainee and counsellor) and 15 August and 15 February for the registered assessor review on LTS.
EY head office obtains and reviews exceptions reports from LTS and drive discipline and exceptions from a central point. Regional offices support the head office with follow up and personal interventions.
Each administrator would retain evidence that such a process is followed on a regular basis.
The consistent, fair and equitable execution of the review of trainees
-Managers and Registered assessors are regularly trained to ensure the evaluation of trainees are consistent and fair
-Regional administrators through their review of LTS would assess the content of various TSR and PSR’s to assess validity
-During the performance review process, HR follow a process of peer comparison and investigate anomalies compared to peers
-During the final ANA competency reviews, a registered assessordiscussion is conducted on the ANA’s for the period under review and to ensure consistency of the trainee assessment process
-The EY competency expectation and rating guidelines document is a live document with guidance and FAQ’s for evaluators, reviewers and registered assessors to ensure consistent application of the SAICA competencies.
-Workshops to ensure consistent application of review standards are conducted from time to time nationally.
Training Officer oversight and review of assessment process
After the first six months of LTS, we conducted a workshop with a third party person to facilitate a session on regular Q&A issues. The session ensured that registered assessors and reviewers were able to gauge the consistency of review approach amongst peers and to remedy any exceptions. No matters came to light that indicated a vast difference in the manner in which the evaluations were conducted. (see file note elsewhere for evidence)
The training officer support team – a team of individuals that are highly knowledgeable on the SAICA regulations and LTS fielded a large amount of questions and queries from reviewers and assessors. The support team was put in place to ensure that all reviewers and assessors nationally could have an “on-call support” for any review issues. (evidence enclosed elsewhere)
Reviewers and assessors are also urged via e-mails to ensure that reviews are completed timely and that they use reference material where necessary. (evidence enclosed elsewhere)
Lastly the training officer accesses LTS and review on a discretionary basis across offices the content and acceptability of TSR, PSR and ANA content.
Furthermore the system to monitor and track progress and development has been greatly enhanced which is the new LTS system.
The training officer regularly discusses the fair and equitable plotting of staff with the resource planners. This is part of their job description to ensure that trainees are treated fair and that exposure to work is done in a manner that all trainees get the required exposure to complete the KRA’s.
Core hours are logged on the LTS home page to ensure that each trainee and counsellor as well as the training officer has sight of the progress trainees make. Again the resource planners together with HR are tasked regularly to ensure staff is able to meet core hours in a timely manner. This is an area where we experience few exceptions and exceptions are mostly driven or caused by the trainee themselves (performance issues / sick leave etc).
Simulations have been developed with great care across service lines to ensure trainees do get exposure in areas that they may not get on the job training for. This again is rolled out nationally and run at each branch.