ACFE Integrated Report

2015/2016

“Rather fail with Honor than succeed by Fraud” - Sophocles

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CONTENTS

INTRODUCTION: ............................................................................................................................................................................................ 4

OBJECTIVE OF THE INTEGRATED REPORT: .......................................................................................................................................... 4

Approval and Statement of Responsibility ................................................................................................................................................ 5

ACFE Leadership Structure: ....................................................................................................................................................................... 6

CEO REPORT: .................................................................................................................................................................................................. 7

Company secretary (Board) OVERVIEW................................................................................................................................................. 11

MISSION: ..................................................................................................................................................................................................... 14

“Fraud is the daughter of greed.” ~jonathan Gash .............................................................................................................................. 14

GOAL: ............................................................................................................................................................................................................ 14

“Begin with the end in mind.” ~Stephen Covey ................................................................................................................................... 14

TRANSPARENCY AND ACCOUNTABILITY: ........................................................................................................................................... 15

BOARD OF DIRECTORS: ........................................................................................................................................................................... 15

ACFE SA PROFESSIONAL STANDARDS: .............................................................................................................................................. 18

Board report overview ................................................................................................................................................................................ 18

ADVOCACY: ............................................................................................................................................................................................. 19

KEY VALUE ATTRIBUTES ................................................................................................................................................................. 19

1. Human Capital: .............................................................................................................................................................................. 19

2. Members: ........................................................................................................................................................................................ 20

3. Member Growth - Annual figures 1 August 2015 – 30th of July 2016: ................................................................................ 20

4. Education and Training: .............................................................................................................................................................. 23

5. Certification: .................................................................................................................................................................................. 24

6. Regional committees: ................................................................................................................................................................... 24

7. Development and growth of the African continent: ............................................................................................................... 24

8. Conference: .................................................................................................................................................................................... 25

RISKS – (OPPORTUNITIES AND THREATS) ...................................................................................................................................... 26

Challenges: ............................................................................................................................................................................................... 26

1. Upgrading Information Technology Platform ......................................................................................................................... 26

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2. Membership Database Audit: ..................................................................................................................................................... 26

3. Challenges regarding our membership fees: ............................................................................................................................. 27

Opportunities: ......................................................................................................................................................................................... 27

1. Integrated Membership Management System .......................................................................................................................... 27

2. Upgrading Information Technology Platform ......................................................................................................................... 28

3. Membership Database Audit: ..................................................................................................................................................... 28

4. New Website .................................................................................................................................................................................. 29

STRATEGIC FOCUS .................................................................................................................................................................................... 29

STRATEGIC OBJECTIVES ......................................................................................................................................................................... 30

OVERALL FINANCIAL REPORT – YEAR ENDED 31 JULY 2016 ...................................................................................................... 32

ACFE SA CORPORATE MEMBERSHIP LIST 2016 ...................................................................................................................... 54

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INTRODUCTION:

This year, the ACFE (Association of Certified Fraud Examiners) celebrated its 28th anniversary since

its launch in Austin Texas by Dr. Joseph T Wells in 1988. Recognition of the profession and the

ACFE grows annually around the globe with more than 175 countries joining hands in the fight against

fraud and white collar crime.

The ACFE SA Chapter was established 10 years later in 1998 and the first fraud conference was

hosted 18 years ago. The ACFE Africa Conference this year celebrates its 9th anniversary.

OBJECTIVE OF THE INTEGRATED REPORT:

The need to raise the standard of fraud examination in Southern Africa and for a Professional Body,

not limited to a specific profession such as accounting or law, resulted in the establishment of a local

Chapter in 1998 with the mission to provide a community environment in which local forensic

examination practitioners can associate. This Chapter is a collection of individuals from varying

industries and professions, all with a single goal in mind, reducing the incidence of white-collar crime

in South Africa.

The objective of this report is to provide all our members with a broad and comprehensive report

regarding the ACFE SA’s ongoing growth in economic, social and environmental performances,

strategies and prospects leading to the enhancement of our value proposition on short, medium and

long term while highlighting both our challenges and successes whilst growing.

The Integrated Report has been prepared in keeping with best practice, pursuant to the

recommendations of the King III Report on Corporate Governance and the principles prescribed by

the International Integrated Reporting Council in its proposed framework. This report will also deal

with issues stipulated in the South African Companies Act, and touch on principles set out in the

coming King IV report.

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APPROVAL AND STATEMENT OF RESPONSIBILITY

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OFFICE OF THE ACFE SA

ACFE Leadership Structure:

ACFE SA EMPLOYEES

ACFE Board

President– Servaas Du Plessis

EXCO

Servaas du Plessis, Bogale Molefe, Bradley Smit, Charl Strydom, Dave May, De Wet Ferreira,

Jaco de Jager, Jonathan le Roux, Morné Britz.

ACFE CEO:

Jaco de Jager

Janine Habig

PA & Company

Secretariat

Melanie Venter

Finance Officer

Nelly Khoza

Membership Officer

Kelly McGeer

Communications Officer

Jesca Lipadzi

Training &

Development

Officer

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CEO REPORT:

Over the past years I have seen a tremendous growth in

the member numbers and brand of the ACFE and ACFE

SA. This past year has exceeded itself and if I’m allowed

to say, has taken its toll — as you will see from all the

grey hair I have accumulated. For me, this past year has

been a roller-coaster ride with, fortunately, a lot of

positives outweighing the negatives. This chapter is

extremely fortunate in having been able to acquire highly

skilled staff over the years and have recently added a new staff member to this list when appointing

Kelly as our communications officer. Our internal restructuring, and our updating of our internal

processes and procedures also clearly paid off as will be clear from this report. I believe that, going

forward, we will grow from strength to strength, and I am extremely excited about what the future

holds for the ACFE SA.

Over the past two years, I regularly referred back to what we have achieved since 1998. I have been

in the CEO seat now for eight years and believe that those before me have set a solid foundation for

the current Board of Directors and me to build on. I, therefore, need to thank the visionaries who

started the ACFE SA 18 years ago, and those who committed their time and money to sit on the

ACFE SA Board of Directors as volunteers. Their contributions ensured that the forensic profession

is now recognised as a profession and the ACFE SA as a professional entity. I want to be forward

when boasting that the ACFE brand is recognised not only in South Africa, but also in many African

countries. We still have a long way to go to ensure that the standard is accepted throughout Africa,

but with the assistance of fellow African chapters, as well as African regional committees, this will be

possible.

This report will be focusing more on what we have achieved over the past year and where we will be

going from here.

When looking at our achievements this last year, one has to refer to the publication made in the

Government Gazette on 23 February 2015, stating it was approved that CERTIFIED FRAUD

EXAMINERS®, who are professional members of the ACFE SA Chapter, are ex officio (by reason of

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the designation they hold) Commissioners of Oath in terms of Section 6 of the Justices of Peace and

Commissioners of Oaths Act, 1963 of 1963 (the Act). In terms of this ex officio status, CFE®

certification must be maintained in order to retain the Commissioner of Oath status. For me, next to

registering the ACFE as a professional body, this remains one of our biggest achievements.

Where in the past we were forced to do everything from collecting vendor forms to the loading of

payments, we now have dedicated people dealing with the various functions in our office.

I want to take this opportunity to thank the following team members for all their hard work and

dedication this past year and to introduce them to you as our member:

Finance

Melanie Venter

melanie@acfesa.co.za

Communications

Kelly McGeer

kelly@acfesa.co.za

Membership

Nelly Khoza

nelly@acfesa.co.za

PA & Company Secretariat

Janine Habig

janine@acfesa.co.za

Training & Development

Jesca Liphadzi

jesca@acfesa.co.za

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Overall the ACFE SA has grown in all aspects. From the report you will note that our membership

increased by 17,8%, CFE’s by 24,30%, and we roughly have close to 1 000 members who are

registered as Associate members and will be writing the CFE International exam within the next year

or so.

Increasing our training events per region and moving more into the African countries has assisted us

to support our members in obtaining the required 20 hours CPE points close to home and all over

Africa. We increased our training events from 52 to 57, ensuring that we not only create skills

development opportunities to our members, but also networking opportunities. What further stands

out is the fact that 83.7 cents of each Rand received from members for services were spent on

delivering the services.

With all these successes highlighted in this report the question now remains, whereto from here… I

can confirm that we continue to look for new opportunities to improve our service to you, our member.

That’s why the ACFE SA has taken up the opportunity to develop a brand new mobile application that

offers all ACFE delegates the opportunity to obtain all relevant information regarding the ACFE SA

(training, events, CPE points, conference, changing your personal details from a click away etc.)

Service delivery, for me, not only deals with updating of your details, providing of training and ensuring

a stronger brand, but also the creating of new products to assist you in the combat of fraud and white-

collar crimes. You will, therefore, see how we, going forward, will drive initiatives proposed by the

various forums, such as the sharing of intelligence by the Intelligence Gathering Forum, setting of

formal industry standards for the different industries as per the Forensic Industry Standard Forum,

and ensuring closer collaboration between the private and public sector as per the Private and Public

Sector Forum.

I again want to emphasise the fact that the ACFE SA is a member organisation; it is YOUR

organisation. I want to thank YOU for all the support, the emails, positive criticism, newsletter articles,

the fun during our ACFE annual Golf day, and many more. I am excited about the future of the ACFE

SA and the profession.

Jaco de Jager

CEO: Association of Certified Fraud Examiners – SA Chapter

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President’s Report: Dear guest, fellow anti-fraud professional, sponsor, and colleague

Time certainly flies when great things are happening. The South African

Chapter made massive strides in the past year, growing its footprint in

Africa, improving member engagement, and most importantly, moving

closer to the establishment of an ACFE African Chapter to address the

unique challenges on our continent.

Over the past few years, members asked several questions regarding

representation at board level. I must stress that the election of board

members has always been a democratic process. During our strategic discussion in May, the

board unanimously concurred to include the elected chairpersons of the regional committees

to represent the various regions at board level.

With only four seats available in 2016, we decided to include the chairpersons of the four

biggest regions by membership this year. In order not to exclude the two smallest regions, the

chairpersons of these committees will attend board meetings as guests until seats become

available for them in 2017.

The introduction of the new information technology platform in 2015, the launch of the ACFE

SA Application on both Google and Apple Application stores in 2016, and regional committee

representation at board level from 2017 onwards, will most certainly improve member

engagement and member services in the years to come.

Fellow board members, colleagues at the ACFE SA, our sponsors, esteemed speakers and

guests, thank you for your contribution and support over the past year. On behalf of the board

of directors, it is with great honour that we welcome you to the 2016 African Conference.

May you all enjoy the conference and leave with enriched knowledge later in the week.

Servaas du Plessis

President: Association of Certified Fraud Examiners – SA Chapter

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COMPANY SECRETARY (BOARD) OVERVIEW

As part of the ongoing process of ensuring governance occurs through all our interactions, the

following serves as a summary of those initiatives, guidance and associated actions that continue to

enhance the roles and responsibilities that the Board of Director’s need to fulfil.

Guidelines and Governance for the Board of Directors

At the beginning of each year, all directors are provided with the ‘Guidelines for Board of Directors’

and the ACFE uniform chapter bylaws. All directors are to ensure they have read through the bylaws

and understand their roles and responsibilities. In addition, directors declare all possible conflict of

interests on an ongoing basis prior to each of the four board meetings held per year.

Exco/Board of Directors meetings and event attendances

The following table depicts the detail of meetings and events attended by the members of the board,

as well as the annual report submission by the respective directors:

Board of Directors Board

meetings Exco

meetings Regional events

ACFE Imbizo

Director Reports

Exco

Servaas du Plessis 5/5 3/3 5 Yes Yes

Bogale Molefe 5/5 2/3 2 Yes Yes

Bradley Smit 4/5 2/3 2 Yes Yes

Charl Strydom 3/5 3/3 2 No Yes

De Wet Ferreira 3/5 2/3 4 Yes Yes

Jaco de Jager 5/5 3/3 6 Yes Yes

Jonathan Le Roux 4/5 2/3 4 Yes Yes

Marius Smit 5/5 2/3 1 Yes Yes

Morné Britz 3/5 3/3 3 Yes Yes

Dave May 5/5 3/3 2 Yes Yes

Oth

er

Caroline Mampuru 1/5 N/A 0 No No

George Barnes 3/5 N/A 1 Yes Yes

Lionel van Tonder 3/5 N/A 0 No Yes

Sipho Nkosi 4/5 N/A 1 Yes Yes

Board Report summary

The various annual reports of the directors are summarised by the Company Secretariat to provide

an overall view to the President of the ACFE South African Chapter. The directors annual report can

be viewed on the ACFE SA website.

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Contributions made to the ACFE SA by the Board of Directors throughout the year, amongst others,

include the following:

Continually striving to market the ACFE SA, ACFE African Regions and ACFE International in

all dealings with organisations like the Special Investigating Unit (SIU) and the Private Security

Industry Regulatory Authority (PSIRA).

Focus on ethical considerations and the ACFE SA’s role in it. The recent attendance by some

ACFE SA Board Members to the Coalition for Ethical Operations initiative to promote ethical

business practices in sub-Saharan Africa, is one example.

Meeting with various chapter members in neighbouring African countries in order to grow the

African Chapter through collaboration and teamwork.

Providing input into the King IV report from a fraud examiner perspective in order to have our

profession and duties depicted in the new King Report.

Driving the Quality Control for Trades and Occupations (QCTO) - application to get the Fraud

Examiner profession approved and being approved as both a Quality Development and Quality

Assurance Partner.

Party to negotiations with UNISA’s College of Law Police Practice to have the CFE Manual

approved as prescribed material for 2017 graduate courses.

Involved in the identification of risks and enhancements to various ACFE SA policies such as

the Financial Policy, IT Policy and other associated policies.

Memorandum of Incorporation (MOI)

To ensure continuity of the Board of Directors, the Memorandum of Incorporation (MOI) of the ACFE

SA was amended as follows:

- The current two (2) year term of directors was extended to a three (3) year term.

- Board positions pending availability were earmarked for the chairmen of the Regional Committees

in South Africa. Due to limited availability, a decision was made to incorporate the chairmen of the

4 biggest committees by number of members. The two smaller regions will attend the board

meetings and activities as invitees and will be incorporated in 2017 when more board positions

become available.

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Conclusion

The ACFE SA continues to drive growth, enhance, and improve member services, and increase

events for both continuous learning, as well as networking social events.

Given the current business and economical environments, we are pleased with the achievements of

the ACFE SA during the past 12 months.

OVERVIEW OF THE ORGANISATION: The Association of Certified Fraud Examiners is an international, professional organisation dedicated

to fighting fraud and white-collar crime. We are registered as a professional body by the South African

Qualifications Authority (SAQA) as per the requirements set out in the National Qualifications

Framework Act (NQF Act).

The ACFE SA is a Chapter (Chapter 91) forming part of the ACFE International with the responsibility

to look after the Ethical and Professional standards in South Africa and the countries it administers.

We have globally more than 85 000 members, locally more than 6500 full members and 11 500

members on our database. Being a member of the ACFE and ACFE SA has become a requirement

in both the public and private sector and the CFE designation is a sought after designation.

We continually research and develop new publications, self-study products, and cutting-edge fraud

training conferences designed to educate and prepare Fraud Examiners for the challenges they face.

The ACFE’s Research and Knowledge base is of the highest standard, and is continually being

updated. The ACFE Code of Ethics and Professional Standards are internationally accepted.

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MISSION: “Fraud is the daughter of greed.” ~Jonathan Gash

The mission of the ACFE is to reduce the incidence of fraud and white-collar crime and to assist the

membership in fraud detection and deterrence. To accomplish our mission, the ACFE:

Provides bona fide qualifications to Certified Fraud Examiners through administration of the CFE

International Examination (Advanced Certificate: Fraud Examination) and the CFE Learnership

Program (Advanced Certificate: Certified Forensic Practitioner). Both these courses are registered

with SAQA on an NQF7 level.

Sets high standards for admission, including demonstrated competence through mandatory

continuing professional education.

Requires members to adhere to a strict code of professional conduct and ethics.

Serves as the international representative for Certified Fraud Examiners to business, government

and academic institutions.

Provides leadership to inspire public confidence in the integrity, objectivity, and professionalism of

Certified Fraud Examiners.

GOAL: “Begin with the end in mind.” ~Stephen Covey

Our goal is to help, encourage and create an ethical, value-driven environment in reducing the

incidence of fraud and white collar crime in our daily working environment.

Our immediate specific goals include the providing of:

Networking opportunities

Practical training

Technical updates

Ongoing updates of what is happening in the forensic industry and the immediate situation we

are currently facing

Regulation of the Forensic Profession

Setting of ethical and professional standards

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TRANSPARENCY AND ACCOUNTABILITY:

As a professional body, the ACFE promotes transparency in our interactions with the relevant

Stakeholders, and recognise our accountability to the members of the ACFE and the public of South

Africa. Everything done within the ACFE SA will be open for anyone who has a question or enquiry

regarding the actions taken by the ACFE SA.

PARTICIPANTS IN THE RESPECTIVE INDUSTRIES

The ACFE SA has been involved in the King IV Committee for the past 2 years and provide our

knowledge and advice where needed and required. The King IV conference will be taking place the

1st of November 2016 where the new KING IV report will be released.

The ACFE SA further takes part in the Anti-intimidation and Ethical Practices Forum (AEPF), an

initiative aimed at dealing with, amongst others, challenges faced by members who became whistle-

blowers in South Africa.

The ACFE SA is currently in the process of registering with SARS as a professional body and with

the QCTO as an Assurance Quality Partner. We are in the fortunate position of being accepted and

registered with the QCTO as a Development Quality Partner.

BOARD OF DIRECTORS:

The Board of Directors consist of 14 passionate individuals responsible for ensuring the continued

growth of the forensic profession. Board members contribute their time and resources without

compensation to the ACFE and ACFE SA, assisting to grow the international footprint of the ACFE.

There have been a few changes made to the Board structure to ensure the respective regional

committees gets more involved, to ensure the ACFE SA moves forward. The Board has also proposed

changes to the ACFE SA’s current Memorandum of Incorporation.

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The ACFE SA Board of Directors felt that they needed more involvement from those working with our

members in the various regions, getting them involved in the decision making process and receiving

direct feedback from the regions on the member’s needs. We believe that this will ensure more growth

in the regions as members now would have direct access to the ACFE SA Board members.

There were 5 (five) positions available in 2016. To enable members to stand for some of these

positions, the Board decided to fill only 4 of the positions this year with regional representation, and

have one of these positions open for our other members. The Board has decided on the following

regions: Johannesburg, Pretoria, Western Cape and the KwaZulu Natal. This decision was made to

get those involved with the largest representation in a geographical area.

The Board has decided to extend this opportunity to the Central and East London regions, until next

year when we will have 2 formal positions opening, to attend our Board meetings taking place in

future.

The Board of Directors serve on the Board for three (3) consecutive years where after they need to

be re – elected before being able to continue as a Board member of the ACFE SA.

The Executive Committee (Exco) currently consist of ten (10) Directors focusing on the operational

aspects of the ACFE SA.

Our election process consists of nominations received from our members where after those with

voting rights have the ability to cast their vote via a formal voting ballot on the ACFE SA website

deciding who will serve on the ACFE SA Board of Directors.

The number of votes dedicated to each designation is as follows:

Honorary member: 10 votes

CFE: 10 votes

Associates: 8 votes

Affiliates: 1 vote

Only paid - up ACFE SA members will have the opportunity to vote for their chosen nominee.

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Our Board’s main functions are:

Setting of the strategic objectives of the ACFE SA

Ensuring that the ACFE SA staff keeps meeting the goals and objectives set

Ensuring the financial wellbeing of the ACFE SA

Preparation of the Integrated Report

Risk management

Duty to exercise skill and care

Execute any and all powers for its proper purpose

Independent judgement in decision making

Sustainability of the organisation

In order for the Board to meet the aforementioned responsibilities and ensuring there is no conflict of

interest, internal controls are found in our Guidelines for ACFE SA Board of Directors, as well as other

relevant documents, which need to be completed and signed by each Director serving on the ACFE

SA Board of Directors. The Board is required to complete a conflict of interest document every six

months to ensure the board stay inside the structured guidelines. This provides reasonable

assurance, in a cost effective manner that the assets of the ACFE SA are safeguarded and that

transactions and actions are performed and recorded in accordance with our policies and procedures.

The roles of the President and CEO are separate, with a clear division of responsibilities to ensure a

balance of power and authority between them.

Except for the CEO, all Directors of the Board are non-executive Directors and do not receive any

remuneration outside of reimbursement for out of pocket expenses.

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ACFE SA PROFESSIONAL STANDARDS:

The ACFE is an association of professionals committed to performing at the highest level of ethical

conduct. Members of the Association pledge themselves to act with integrity and to perform their

work in a professional manner.

Members have a professional responsibility to their clients, public interest and each other; a

responsibility that requires subordinating self-interest to the interests of those served.

These standards express basic principles of ethical behavior to guide members in the fulfilling of their

duties and obligations. By following these standards, all Certified Fraud Examiners will be expected,

and all Associate members will strive, to demonstrate their commitment to excellence in service and

professional conduct.

BOARD REPORT OVERVIEW

Contributions made to the ACFE SA by the Board of Directors throughout the year amongst others

consisted of the following:

Continually strive to market the ACFE SA, ACFE Africa regions and ACFE International.

Contributed significantly to the Fraud Examination by advocating the establishment of the

Public Sector Fraud Examiners’ Forum and helping that it be affiliated to the ACFE SA.

Meet with Chapter members of Botswana, Zambia, Namibia, Cameroon, Malawi and

Zimbabwe confirming the SA Chapters commitment to support and grow the Africa Chapter

through collaboration and teamwork across all borders.

ACFE AFRICA:

The ACFE SA submitted a proposal for the ACFE SA to run under ACFE Africa, this will provide the

ACFE SA with more tools to work in Africa and grow as a professional body.

The ACFE SA will still go on as usual business, but the ACFE Africa will offer the Forensic industry

many more opportunities.

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ADVOCACY:

During the past year, the ACFE SA has dedicated a lot of time in growing the brand of the ACFE

across Africa. In addition, with the Africa MoU’s we signed last year this year we became a few African

countries richer namely – Cameroon, Zambia and we’re looking to re-unite with Namibia. We are in

the process of signing an MoU with UNISA and we are also in the process of working towards a long

and prosperous relationship with JUTA.

Last year, during the International Fraud Awareness week, we launched a Lesotho committee and

are in the process of signing a MoU with Lesotho.

KEY VALUE ATTRIBUTES

1. Human Capital:

Human capital is our most important resource and the strength of our organisation and the growing

pace depends on the people we employ. When we decided to expand on our staff complement, we

focused on recruiting people who have the necessary skills and experience, knowing we do not have

the luxury of time on hand to train them, to do what they are supposed to do.

Since March 2015, the ACFE SA appointed three new employees. In August 2016, the ACFE SA

appointed an employee who focuses on communication and the editing of all ACFE content which

includes reports, emails, and marketing. This helps to ensure that professional language is used at

all times and to guarantee that we offer our members a more service driven professional service.

During the appointment process, we looked for the following attributes:

The skills of the employee, taking the position applying for into consideration

Previous experience

Ethical and moral values

Comparing the job specifications and salary range with that of other professional bodies

Seeing that our financial year ends on 31 July each year, the CEO, together with the ACFE SA

Treasurer, provides a proposed budget together with recommendations on increases to the Board of

Directors for their consideration.

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Annual increases are based on the following:

Performance of the employee during the year evaluated according to their respective KPA’s

The Board of Directors then debate the proposed salaries presented by the CEO taking into

consideration the KPA’s of the staff, market related salaries and the financial status of the

ACFE SA

The salary increases are then communicated to staff in writing as soon as the Board has

come to a final decision

Annual increases are effective from August of each year and bonus is paid during November

Employees need to provide for their own pension and medical aid

The ACFE SA contribute the following to its employees’ salaries:

Basic salary

Bonus

Employee and employer deductions as required by law (e.g. PAYE & UIF)

An independent company, tasked to do salary comparisons, is currently reviewing the salaries. Their

report will be handed to the newly appointed Board of Directors during the December meeting.

2. Members:

The ACFE is a members organisation and both the wellbeing, as well as the sustainability requires

continued development, growth and keeping pace with change. In terms of membership, the following

numbers are of importance

3. Member Growth - Annual figures 1 August 2015 – 30th of July 2016:

We noticed a significant growth in membership over the last year:

CFE’s Growth of 24.30%

Associates Growth of 23.7%

Affiliates Growth of 14.15%

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Our overall membership grew by 17.84% proving the need for professionalisation, regulation of the

profession and the need to employ people with the necessary skills to prevent, detect and investigate

fraud and white collar crime.

0

200

400

600

800

1000

1200

Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16

CFE's

0

500

1000

1500

2000

2500

3000

3500

4000

4500

Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16

Mem

ber

s

Month - 2015 inancial Year

ACFE SA Member Growth

TOTAL CFE's

TOTAL ASS

TOTAL AFF

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The ACFE SA’s goal of having more than a 1000 CFE’s has been reached with the current 1078

CFE’s we have. The ACFE SA is working very hard on projects and initiatives to ensure we meet the

3000 CFE target by 2020 set by the ACFE SA Board of Directors.

The ACFE SA was allowed to provide companies with the ability to take corporate membership with

the benefit to register their employees with the ACFE SA and pay a reduced annual fee. In doing so,

companies provide their employees with the opportunity to belong to a professional body. During the

period 2015/2016, the ACFE SA has experienced a growth of 2% in corporate membership and

proudly list those who support the ACFE SA at the end of this document.

The ACFE SA has gone so far as to offer numerous corporate members the opportunity to request a

combined invoice enabling the corporate members the opportunity to pay their ACFE SA and ACFE

membership through the ACFE SA in rand value.

Our members and corporate members receive numerous benefits in being part of our membership.

Some of the benefits are listed below:

Access to a network of experienced professionals

A training framework for practitioners with “how to” guidance and formal standards

A NQF level 7 - SAQA qualification once you pass your CFE International Exam

Regular discussion forums on issues relevant to the local environment

Annual workshops on fraud examinations

Discounted participation at a number of CFE Endorsed conferences and training seminars

Regular training that qualify for CPE / CPD (continuing professional education/ development)

points

A monthly electronic newsletter

A Career Centre

Seminars and conferences at a fraction of the cost

Ex Officio Commissioner of Oath status to all CFE’s

CFE’s belonging to the local Chapter are also uploaded onto the National Professional

Database hosted by SAQA

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4. Education and Training:

The ACFE SA offers numerous training courses and regional events all over the country. This

provides members of the ACFE SA, and non-members, the opportunity to network, mentoring

opportunities, continuing professional education, and helps with promoting fraud awareness.

We have increased our training events in all the regions and have expanded, now into other countries

like Botswana, Malawi, Namibia, Lesotho, Zambia and Zimbabwe and we are looking for applicable

dates to host workshops in Cameroon (in conjunction with the Cameroon chapter) and Swaziland.

We hope to be able to expand even further in all the regions ensuring that our members have the

benefit of obtaining the relevant training in their own province to meeting the required 20 hours CPE.

For this reason, we have also partnered with other professional bodies like SAICA, SAIPA and the

IIA SA.

Every year the ACFE SA structures a training calendar for that specific year to ensure that training is

available when the need for it arises

OFO CODE:

The NQF provides for a fully integrated and needs driven occupational learning system that will meet

the needs of the industry. To achieve this, extensive use is made of an "Organising Framework for

Occupations' (OFO). The OFO sets the base for linking various occupations to specific skills and

assists in identifying further training needs. The OFO is a skill-based classification system, which

encompasses all occupations in the South African context. The classification of occupations is based

on a combination of skill levels and skills specialisation which makes it easy to locate a specific

occupation within the framework. The ACFE SA has successfully been registered on the Organising

Framework for Occupations with the following unit group-2015-2422 Policy Administration

Professionals - Fraud Examiner.

OCCUPATIONAL QUALIFICATION:

Occupational qualifications define the learning component required for occupational competence and

each unit standard identifies

the knowledge and theory component and standard

the practical skills standard

the work experience standard

24 | P a g e

ACFE SA is undergoing the development of the occupational qualification as the Development

Quality Partner with the QCTO, planning to register the Occupation Fraud Examiner at NQF level

8.

5. Certification:

The ACFE Certified Fraud Examiners International exam has been registered on the NQF by SAQA

at NQF level 7. This makes the designation the first of its kind to be both internationally and locally

recognised as the standard for a Forensic Investigator/Auditor. This Advanced Certificate: Forensic

Practitioner is available to all candidates who successfully complete the CFE Exam (International

version) assisting them to not only receive a qualification, but also be recognised as professionals on

the National Professional Database administered by SAQA, and be recognised as Ex Officio

Commissioners of Oaths.

6. Regional committees:

The objective and mandate for Regional Interest groups is not to create separate Chapters or legal

entities.

The objective of these groups is to facilitate regional training events and networking functions in

certain geographical areas, supported by the national (ACFE SA) Chapter. The Regional Committee

act as the ACFE SA ambassador/representative in the specific region.

The ACFE SA has managed to establish a regional committee in Eastern Cape as well as in Lesotho

during this past year.

7. Development and growth of the African continent:

In terms of growth into Africa, the ACFE SA continues to assist with the launch of new Chapters,

exposure, marketing and other relevant aspects that are required and agreed upon in the MoU’s

signed with country representatives.

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8. Conference:

The Annual African Fraud Conference is being held each year and is the second largest Anti-Fraud

Conference in the world. This year it will be hosting the 9th Annual ACFE Africa Fraud Conference

and Exhibition.

The focus of the AGM is to give anti-fraud professionals the opportunity to expand their existing fraud

knowledge and develop new skills and techniques. This year’s sessions feature world-renowned

speakers with presentations that cover almost every aspect of fraud, providing relevant skills that can

be applied immediately. The attendees will learn practical solutions that will become part of their skills,

enabling them to do their job more efficiently and effectively. In addition, they will earn up to 20 hours

of Continuing Professional Education (CPE).

The conference remains our biggest annual event and most of our income is generated from this

event. We, therefore, need to thank all our members for their continued support in registering and

attending this prestigious event.

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RISKS – (OPPORTUNITIES AND THREATS)

This section answers the question: What are the risks, opportunities and threats that we are currently

facing and how are we dealing with them?

2015 Challenges – and how The ACFE SA manages to resolved the challenges faced

Challenges:

1. Upgrading Information Technology Platform

The information technology resources in use by the South African Chapter were significantly outdated

and it was necessary to re-evaluate the information technology needs of the Chapter. We have

addressed the risk of becoming outdated and securing our members data by acquiring a new platform,

which we will be launching formally during the upcoming ACFE African Conference. We are sure that

this new platform will not only solve most of our administrative concerns, but also ensure a more user

friendly service to our members.

2. Membership Database Audit:

The South African Chapter has a significant database but queries have been raised about the

accuracy thereof, and the value that this information has to the Board to make strategic decisions.

Initial examinations of the date revealed significant discrepancies and a decision was made to conduct

a comprehensive membership data audit to insure the integrity of our data, as well as to comply with

certain requirements in terms of the Protection of Personal Information Act.

Solution -

The ACFE SA has moved over to a new website – Wild Apricot where each delegate has the

opportunity to change their personal information if needed. The ACFE SA has a new mobile

application available that offers the members the ability to amend their personal information, with a

click of a button.

This system ensures that the membership data base is more accurate and updated.

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3. Challenges regarding our membership fees:

After cleaning our member database, we have seen that in previous years a number of invoices

never went out to the correct mail addresses. This had a direct impact on our income, which we

now believe is rectified. We also removed those from our database who were registered as

members and receiving the benefits without making payment. We have increased our membership

fees with the agreed 10% and have seen a 23% growth in membership, which we believe was due

to the steps taken by management. - Resolved

Opportunities:

1. Integrated Membership Management System

In 2014, a decision was made to explore new technologies to better serve our members and improve

the effectiveness and efficiency of the South African Chapter. Up until now, most of the information

systems in use have been adhoc and manual.

It was decided to invest in an integrated membership management system with Wild Apricot being

selected as the platform of choice. A focus of this year was the customisation of this platform, the

testing thereof, the integration of our member data (once audited), and the deployment of this

platform.

With the adoption of the Wild Apricot platform to host the Chapters Integrated Membership

Management System, a standard systems development process was followed in customising the

system to meet the needs of the Chapter. This included:

the development of a database schema.

the determination of standard data fields.

the creation of validation and verification rules in the database to protect, the integrity of the

data within the database.

the testing of system functionality.

loading test data.

alpha testing.

beta testing.

28 | P a g e

The Integrated Membership Management System is now fully functional and had been launched in

February 2016.

The ACFE SA also decided to invest in our own Mobile Application to offer all ACFE SA members the

opportunity to have access to all relevant information (training information, changing of personal

information, CPE points etc.) with only a click away.

This year the ACFE SA will also be making use of QR codes regarding the registration process during

the conference and other training sessions, where members will have the opportunity to scan the

given barcode and register / log their CPE points with the click of a button.

The QR barcodes have also been implemented at all ACFE SA workshops and regional meetings,

and we hope to do away from the traditional manual registration process.

2. Upgrading Information Technology Platform

A comprehensive needs assessment was conducted concerning Information Technology within the

Chapter, which was coupled with an information system. An audit of all the information technology is

currently being deployed within the Chapter.

At the conclusion of this process, the specific needs in terms of new computer hardware were

identified, and a comprehensive procurement process undertaken, which allowed the Chapter to

source all of the computer hardware required, meeting the necessary minimum specifications required

to meet operational needs while still ensuring an open, transparent and cost effective procurement

process

The Information technology platforms, in terms of the computer hardware, are now up to specifications

technology and current. This should meet our operational needs for at least the next two financial

years.

3. Membership Database Audit:

The initial members’ database verification exercise has been conducted and an audit undertaken

matching the electronic data against physical membership forms. We are currently in the final phase

29 | P a g e

of the verifying and validating the data quality, which is also a legal requirement to comply with certain

aspects of the Protection of Personal Information Act.

This process will involve a final verification conducted in batches where the cleaned data is finally

verified by the members themselves, and lapsed resigned and non-active members removed from

the database required by the protection of Personal Information Act.

This process is integrated with the operation of the Integrated Membership Management System.

The outstanding aspects of the project are as follows, along with the project deadlines and dependent

activities.

4. New Website

Coupled with the new integrated membership management system, is the development of a new

interaction Web 2.0 Chapter website with full membership functionality. This new site is being

developed as part of the Wild Apricot platform.

The new Chapter website forms a part of the new Integrated Membership Management System.

The process of designing the new website has followed a standard web design approach to maximise

the user experience. This included:

setting up customised style sheets.

designing the graphical look at feel of the site.

designing the structure of the website.

transferring and rationalising content from the current website.

the implementation of the membership database backend into the website.

alpha testing.

beta testing

STRATEGIC FOCUS

Our strategic focus is to enhance and broaden the knowledge of all individuals in detecting fraud and

to make them aware of all other fraud activities taking place in our daily working environment.

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STRATEGIC OBJECTIVES

In line with the ACFE’s mission and goal, our overall objectives may be summarised as follows:

To create a framework and principles for all our members detecting fraud and white collar

crime.

To support all Associate members in registering to write the CFE exams and to strive to create

an enabling environment, which allows investigators and other related investigation entities to

grow and contribute to the detection of fraud activities taking place in our daily working

environment.

Issuing and continuously improving our standards for all our training material being presented.

Maintaining corporate governance.

Strategic Alliance Partnerships: We live in an era where no organisation like ours can fulfil its mandate in isolation. Creating strong

partnerships is crucial to the success of the Association. To this end, we have built partnerships with

a number of Professional Bodies listed below. We have decided only to partner with those recognised

as Professional Bodies meeting SAQA’s requirement, per the National Qualifications Framework Act.

Our success further lies in those entities who assist us in sponsoring venues for our meetings and

some have gone as far as covering our catering costs as well. This assisted us to create opportunities

to reduce our training costs and in some instances even host fully sponsored events (free to

members). It would be prudent for us to acknowledge those supporting organisations herein which

include: Bank of Namibia, Discovery, EY, KPMG, Old Mutual, PwC, Sanlam, SNG, Standard Bank,

and the UFS Business School.

31 | P a g e

Abbreviation Name of Company

CIPS

Chartered Institute of Procurement and

Supply

CISA Compliance Institute Southern Africa

ESAAG Eastern & Southern African Accountants-

General

Ethics SA The Ethics Institute of South Africa

FPISA

Financial Planning Institute of Southern

Africa

IIA SA Institute of Internal Auditors

IOD SA Institute of Directors in Southern Africa

IRBA Independent Regulatory Board for Auditors

ISACA Information Systems Audit and Control

Association

JUTA JUTA and Company (Pty) Ltd

PSIRA Private Security Industry Regulatory

Authority

SAICA The South African Institute of Chartered

Accountant

SAIPA South African Institute of Professional

Accountants

SAIGA The Southern African Institute of Government

Auditors

WISA Water Institute of Southern Africa

32 | P a g e

ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER

OVERALL FINANCIAL REPORT – YEAR ENDED 31 JULY 2016

ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICAN CHAPTER OVERALL FINANCIAL REPORT – YEAR ENDED 31 JULY 2016

OPERATIONS

Income

Membership fees (26.9%), meeting and training sessions (11.8%), and conference revenue (53.4%), continue

to be the Chapter’s primary sources of income.

Membership fees increased by 9.3 % the previous year, reason being partially due to a rate increase but more

so as a result of actual membership base growth of 17.8%. The increase in meetings and training sessions

revenue (16.9%) over 2015 is the result of more training sessions being held, and an overall higher number of

attendees. We further experienced more companies requesting in-house training for groups of employees.

Training charges had not been increased during the year. Conference revenue continues to be the Chapter’s

main source of revenue, subsequently increasing marginally by 22.6%. This increase in conference revenues

was largely a result of higher attendance, with a meager attendance fee increase.

Other sources of income increased by 37.1% over the previous year mainly due to increased revenue from

sales of promotional items and investment income, i.e. interest earned during the year. The ACFE SA has

changed its investment portfolio to ensure maximum return. Good managerial skills have ensured a constant

growth of income.

Total income reflected an overall increase of 19.0% over the previous year at R10 305 015 (2015: R8 658

958).

Expenditure

Expenditure totaled R7 948 162 (2015: R7 513 603), reflecting an increase of 5.8% over the previous year.

The main contributors to the overall increase in expenditure were lease rentals and operating leases with R45

33 | P a g e

730 (16%); marketing and branding costs that increased with R483 334 (137%); provision for credit notes

(membership fees for previous years that have not been received) of R87 353; and travel expenses which

were R145 721. An expanded footprint has resulted in increased travel costs, and continuous marketing to

increase awareness, add to overall costs. The exchange rate fluctuation contributed to this increase. Overall

remuneration costs (including that of the CEO) decreased by 1%, despite the addition of new personnel and

creation of certain administrative posts. During the year a formal salary benchmarking exercise had been

conducted to further inform the Board on the remuneration. The benchmarking indicated that both the CEO’s

and ACFE SA staff remuneration was below the median and needed addressing. The adjustment has been

effected and will be rolled out over the next three (3) years to ensure that remuneration is aligned to market

standards.

Surplus

The Chapter’s net result for the year incurred a surplus of R2 356 835 (2015: R1 145 355). This is largely

attributed to the significant increase of more than R1 million in AGM and Annual Conference fees, resulting

from a record attendance of 880 at the 2015 Conference. Other income sources totaled at R809 499 (2015:

R590 299) because of the continued growth in membership and membership fees.

Considering that a surplus in a non-profit entity that is designed to provide member benefits, it is important, as

a sense-check, to assess the overall reasonableness of the ‘pricing’ of events and member dues. Ignoring the

income from other sources (which are not always within management’s control) and considering the timing of

cash flow impacting the organisation’s liquidity to perform, the surplus of revenue over operating costs

represents 16.3% of total revenue. Thus, just a shade over 16% of the fees from membership dues, meetings

and training, and conference fees were realised in excess of the anticipated costs of the delivery of the services

to our members. In other words, 83.7 cents of each Rand received from members for services were spent on

delivering the services.

FINANCIAL POSITION

Equity

The Chapter’s accumulated surplus available to fund further development initiatives and future operations

amount to R5 988 678 (2015: R3 631 825).

Liabilities

Trade and other payables relate to accounts outstanding at year-end, which would have been incurred in the

ordinary course of operations and amount to R581 065 (2015: R393 045).

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The balance of the amount reflected under current liabilities reflects the income received in respect of annual

membership renewals for the 2016 / 2017 year and Conference Fees received in advance. These amounts

will be released into income in the new financial year.

Assets

Trade and other receivables comprise current and prior year membership, training and conference fees

receivable of R2 276 656 (2015: R1 680 046). The level of receivables has increased significantly when

compared to last year. Management has conducted a detailed assessment as to the collectability of these

receivables and raised additional provision for doubtful debts of R299 800 (2015: R212 447), representing

13.2% of the gross receivables.

The Chapter’s cash balances at year-end amounted to R6 473 719 (2015: R4 152 596) which is significantly

attributable to the income received in advance amount of R2 335 574 (2015: R1 937 225).1 This is held in a

combination of the Chapter’s current account and money-market account based on the relevant cash flow

needs to maximize the interest revenue.

OTHER MATTERS

Taxation

The Chapter is registered as a Public Benefit Organisation (PBO) with the South African Revenue Services

(SARS) for tax purposes and is, as a result, exempt from paying tax in terms of the Income Tax Act.

Going concern

The ability of the Chapter to continue is dependent on the interest shown by members and the continued

financial support of all stakeholders. The Board of Directors have, together with the CEO and his team, devised

plans to continue to have member-focused, value-adding programmes in place to ensure a sustainable entity

and a profession that one can belong to with pride.

The efforts in ensuring administrative and financial stability by the CEO and his team, my fellow Board

members and the various members and external stakeholders is what will ensure a sustainable Chapter. Thank

you to each one of you for your sterling, selfless contributions as the war on fraud and corruption is advanced

to a different level!

Morné Britz

Treasurer

1 Refer to Liabilities

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ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA

CHAPTER (NON – PROFIT COMPANY)

Registration number 1999/014890/08

Annual Financial Statements

For the year ended 31 July 2016

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ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)

Registration number 1999/014890/08

Annual Financial Statements at 31 July 2016

INDEX

The reports and statements set out below comprise the annual financial statements presented to the members:

Index 1

2 General Information

Independent Auditor Report

Directors' Responsibilities and Approval

Directors' Report

3

4 - 5

6 - 7

8 Statement of Financial Position

Statement of Comprehensive Income

Statement of Changes in Equity

Statement of Cash Flows

Accounting Policies

9

10

11

12

Notes to the Annual Financial Statements 13 - 16

The supplementary information presented does not form part of the annual financial statements and is unaudited:

Detailed Income Statement 17 - 18

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ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)

Registration number 1999/014890/08

Annual Financial Statements

For the year ended 31 July 2016

GENERAL INFORMATION

COUNTRY OF INCORPORATION AND DOMICILE

NATURE OF BUSINESS AND PRINCIPAL

ACTIVITIES

South Africa

To serve the community by the promotion of improved fraud detection through

expansion of knowledge and interaction

of its members

DIRECTORS Barnes GW

Britz M De Jager J

Du Plessis SJ

Ferreira D

Le Roux JN

Mampuru NC

Molefe BR

Nkosi ST

Smit MM

Smit BA Strydom CJ

Van Tonder L

May DG

107 Nicolson Street

Nicolson House

Block B Brooklyn Office Park

Brooklyn

REGISTERED OFFICE

0181

BANKERS

AUDITOR

First National Bank

Fourie & Botha

Chartered Accountants (SA)

COMPANY SECRETARY

LEVEL OF ASSURANCE

Le Roux J

The financial statements have been audited in accordance with the applicable sections of the Companies Act 71 of 2008.

PREPARER The financial statements were independently prepared by Equality

Accounting Dynamics CC.

NPO REGISTRATION NUMBER

091-312-NPO

38 | P a g e

I have audited the annual financial statements of Association of Certified Fraud Examiners South Africa Chapter (Non-Profit Company) set out on pages 8 to 16 which comprise the statement of financial position at 31 July 2016, the statement of comprehensive income, the

statement of changes in equity and the statement of cash flows for the year then ended, and the notes, comprising a summary of

significant accounting policies and other explanatory information.

To the Shareholder of Association of Certified Fraud Examiners South Africa Chapter (Non-Profit Company)

Directors' Responsibility for the Financial Statements

3.

INDEPENDENT AUDITOR'S REPORT

The company’s directors are responsible for the preparation and fair presentation of these financial statements in accordance with

International Financial Reporting Standards for Small and Medium-sized Entities and the requirements of the Companies Act of South

Africa, for determining that the basis of preparation is acceptable in the circumstances and for such internal control as the directors

determine is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud

or error.

Auditor's responsibility

My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with

International Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to

obtain reasonable assurance whether the financial statements are free of material misstatement.

An audit includes performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The

procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the annual

financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the

entity's preparation and fair presentation of the annual financial statements in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes

evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well

as evaluating the overall presentation of financial statements.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Prior year audited by a predecessor auditor

The financial statements of the prior year were audited by a predecessor auditor on (date).

Fourie & Botha Chartered Accountants (SA) 28 September 2016

____________________________

Per:

Registered Auditor

39 | P a g e

ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)

Registration number 1999/014890/08

Annual Financial Statements at 31 July 2016

The directors are required by the South African Companies Act to maintain adequate accounting records and are responsible for the

content and integrity of the annual financial statements and related financial information included in this report. It is their responsibility to

ensure that the annual financial statements satisfy the financial reporting standards as to form and content and present fairly the

statement of financial position, results of operations and business of the company, and explain the transactions and financial position of

the business of the company at the end of the financial year. The annual financial statements are based upon appropriate accounting

policies consistently applied throughout the company and supported by reasonable and prudent judgements and estimates.

DIRECTORS' RESPONSIBILITIES AND APPROVAL

The financial statements have been audited by the independent auditing firm, Fourie & Botha Chartered Accountants (SA), who has been

given unrestricted access to all financial records and related data, including minutes of all meetings of shareholders, the board of directors

and committees of the board. The directors believe that all representations made to the independent auditor during the audit were valid

and appropriate. The external auditor’s unqualified audit report is presented on page 3.

The directors acknowledge that they are ultimately responsible for the system of internal financial control established by the company and

place considerable importance on maintaining a strong control environment. To enable the directors to meet these responsibilities, the

board sets standards for internal control aimed at reducing the risk of error or loss in a cost effective manner. The standards include the

proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of

duties to ensure an acceptable level of risk. These controls are monitored throughout the company and all employees are required to

maintain the highest ethical standards in ensuring the company's business is conducted in a manner that in all reasonable circumstances is

above reproach.

The focus of risk management in the company is on identifying, assessing, managing and monitoring all known forms of risk across the

company. While operating risk cannot be fully eliminated, the company endeavours to minimise it by ensuring that appropriate

infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints.

The directors are of the opinion, based on the information and explanations given by management that the system of internal control

provides reasonable assurance that the financial records may be relied on for the preparation of the annual financial statements.

However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement

or loss. The going-concern basis has been adopted in preparing the financial statements. Based on forecasts and available cash resources

the directors have no reason to believe that the company will not be a going concern in the foreseeable future. The financial statements

support the viability of the company.

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ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)

Registration number 1999/014890/08

Annual Financial Statements at 31 July 2016

DIRECTORS' RESPONSIBILITIES AND APPROVAL

The annual financial statements as set out on pages 8 to 16 were approved by the board on 28 September 2016 and were signed on their behalf by:

___________________________

Du Plessis SJ

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ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)

Registration number 1999/014890/08

Annual Financial Statements at 31 July 2016

DIRECTORS' REPORT

The directors present their report for the year ended 31 July 2016.

1. Review of activities

Main business and operations

The principal activity of the company is to serve the community by the promotion of improved fraud detection through expansion of

knowledge and interaction of its members and there were no major changes herein during the year.

The operating results and statement of financial position of the company are fully set out in the attached financial statements and do not

in our opinion require any further comment.

2. Going concern

The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes

that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent

obligations and commitments will occur in the ordinary course of business.

3. Events after reporting date

All events subsequent to the date of the annual financial statements and for which the applicable financial reporting framework require

adjustment or disclosure have been adjusted or disclosed.

4. Directors' interest in contracts

To our knowledge none of the directors had any interest in contracts entered into during the year under review, however, Mr D Ferreira

and Mr C Strydom did receive professional fees from the ACFE SA for services rendered.

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ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)

Registration number 1999/014890/08

Annual Financial Statements at 31 July 2016

DIRECTORS' REPORT

5. Directors

The directors of the company during the year and to the date of this report are as follows:

Barnes GW

Britz M

De Jager J

Dhanlall R (Resigned 15 September 2015

Du Plessis SJ

Ferreira D

Jordaan J (Resigned 15 September 2015

Le Roux JN

Mampuru NC

Molefe BR

Mxunyelwa Z (Resigned 15 September 2015)

Nkosi ST

Smit BA

Smit MM

Strydom CJ

Van Tonder L

May DG (Appointed 15 September 2015)

6. Secretary

The company's designated secretary is Le Roux J.

7. Auditor

Fourie & Botha Chartered Accountants (SA) was the auditor for the year under review and will continue in office as per section 90 of the Companies Act 71 of 2008.

43 | P a g e

ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)

Registration number 1999/014890/08

Annual Financial Statements at 31 July 2016

Statement of Financial Position

2 65,710 120,999

Figures in R Note(s) 2016 2015

1.

Assets

Non-Current Assets

Property, plant and equipment

Current Assets

Inventories 3

4

5

Trade and other receivables

Cash and cash equivalents

Total Assets

Equity and Liabilities

2. Equity

Accumulated funds

Current Liabilities

Trade and other payables

Income received in advance

6

Total Equity and Liabilities

8,454

1,680,046

4,152,596

5,841,096

89,232

2,276,656

6,473,719

8,839,607

5,962,095 8,905,317

3,631,825 5,988,678

393,045

1,937,225

2,330,270

581,065

2,335,574

2,916,639

5,962,095 8,905,317

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ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)

Registration number 1999/014890/08

Annual Financial Statements at 31 July 2016

Statement of Comprehensive Income

8,068,659 9,495,516

529,894

(7,513,603)

1,084,950

Figures in R Note(s) 2016 2015

Revenue

Other income 649,098

(7,948,162)

2,196,452

Operating costs

Operating surplus 8

Finance income

Total comprehensive income for the year

160,401 60,405

1,145,355 2,356,853

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ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)

Registration number 1999/014890/08

Annual Financial Statements at 31 July 2016

Statement of Changes in Equity

Accumulated

Figures in R funds Total

Balance at 1 August 2014

Total comprehensive income for the year

Balance at 1 August 2015

Balance at 1 August 2015

Total comprehensive income for the year

Balance at 31 July 2016

10

2,486,470

1,145,355

3,631,825

2,486,470

1,145,355

3,631,825

3,631,825

2,356,853

5,988,678

3,631,825

2,356,853

5,988,678

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ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)

Registration number 1999/014890/08

Annual Financial Statements at 31 July 2016

Statement of Cash Flows

Figures in R Note(s) 2016 2015

Cash flows from operating activities

Surplus for the year

Adjustments for:

Depreciation of property, plant and equipment

Investment income

(Increase)/decrease in inventories

Increase in trade and other receivables

Increase in trade and other payables

Cash generated by operating activities

Interest received

Net cash from operating activities

Cash flows from investing activities

Property, plant and equipment acquired

Proceeds on disposals of property, plant and equipment

Net cash utilised in investing activities

Increase in cash and cash equivalents

Cash and cash equivalents at beginning of the year

Cash and cash equivalents at end of the year 5

2,356,853 1,145,355

55,889

(160,401)

(80,778)

50,833

(60,405)

1,264

(596,610)

586,369 (938,440)

910,735

1,109,342

60,405

2,161,322

160,401

2,321,723 1,169,747

(601)

1

(114,972)

-

(600) (114,972)

2,321,123

4,152,596

6,473,719

1,054,775

3,097,821

4,152,596

47 | P a g e

ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)

Registration number 1999/014890/08

Annual Financial Statements at 31 July 2016

Accounting Policies

1. Summary of significant accounting policies

1.1 Revenue recognition

These financial statements have been prepared in accordance with the International Financial Reporting Standards for Small and Medium-

sized Entities issued by the International Accounting Standards Board. The principal accounting policies applied in the preparation of these

financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Revenue is recorded in the financial statements at the date amounts are invoiced in the accounting records.

1.2 Property, plant and equipment

Items of property plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment

losses.

Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred

subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of

property, plant and equipment, the carrying amount of the replaced part is derecognised.

Depreciation is charged so as to allocate the cost of assets less their residual values over their estimated useful lives, using the

straight-line method. The following rates are used for the depreciation of property, plant and equipment:

Cash and cash equivalents includes cash on hand, demand deposits and other short-term highly liquid investments.

Computer Equipment

Computer Software

Furniture & Fittings

33.33%

50.00%

20.00%

1.3 Inventories

Inventories are stated at the lowest cost and selling price is at a lesser cost to complete and sell. Cost is calculated using the first-in, first-out (FIFO) method.

1.4 Cash and cash equivalents

1.5 Financial instruments

Financial instruments on the statement of financial position comprise of trade and other receivables, cash and cash equivalents, trade and other payables and income received in advance. These instruments are carried at their expected fair values.

48 | P a g e

ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)

Registration number 1999/014890/08

Annual Financial Statements at 31 July 2016

Notes to the Annual Financial Statements

Figures in R 2016 2015

2. Property, plant and equipment

2016 Carrying

value

2015 Carrying

value

Accumulated depreciation

Accumulated depreciation Cost Cost

Owned assets

Furniture & fittings

Computer equipment

Computer software

Carrying value at

beginning of

2016 Carrying

value at end

of year year Additions Disposals Depreciation

Owned assets

Furniture & fittings

Computer equipment

Computer software

Carrying 2015 Carrying

value at end

of year

value at beginning of

year Additions Disposals Depreciation

Owned assets

Furniture & fittings

Computer equipment

Computer software

3. Inventories

Inventories comprise:

Promotional gear and DVD's

13

104,347 89,534

163,581

44,935

14,813 104,347 83,131

124,406

34,624

21,216

214,471

44,942

50,890

7

213,871

44,942

89,465

10,318

363,760 298,050 65,710 363,160 242,161 120,999

The carrying amounts of property, plant and equipment can be reconciled as follows:

21,216

89,465

10,318

-

600

1

(1)

-

(6,402)

(39,175)

(10,312)

(55,889)

14,813

50,8

907

120,999 601

-

(1) 65,710

-

-

-

-

(10,020)

(22,880)

(17,933)

(50,833)

21,216

89,465

10,318

120,999

16,301

18,992

21,567

56,860

14,935

93,353

6,684

114,972

89,232 8,454

49 | P a g e

ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)

Registration number 1999/014890/08

Annual Financial Statements at 31 July 2016

Notes to the Annual Financial Statements

Figures in R 2016 2015

4. Trade and other receivables

Trade debtors 962,036

84,620 Sundry debtors

Prepaid expenses

5. Cash and cash equivalents

Favourable cash balances

Bank balances

Cash

6. Trade and other payables

Sundry creditors

Trade creditors

Value Added Tax

7. Income tax expense

The organisation is exempt from normal tax in terms of Section (10) of

the Income Tax Act, hence no provision for tax is made.

624,238

82,201

1,230,000

2,276,656

973,607

1,680,046

6,472,719

1,000

4,152,114

482

6,473,719 4,152,596

65,112

362,029

153,924

581,065

73,988

177,888

141,169

393,045

50 | P a g e

ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)

Registration number 1999/014890/08

Annual Financial Statements at 31 July 2016

Notes to the Annual Financial Statements

2016 Figures in R 2015

8. Operating surplus

Operating surplus is arrived at after taking into account the following items:

Income

Exchange rate profits on foreign exchange

Expenditure

Exchange rate losses on foreign exchange

Depreciation

Owned assets

Furniture and fittings

Computer equipment

Computer software

Auditor's remuneration

Audit fees

-current

Directors' emoluments

Executive - De Jager J

- Remuneration

Employee salaries

Operating lease charges

Premises

- 2,133

19,321 -

6,402

39,175

10,312

55,889

10,020

22,880

17,933

50,833

2,550 2,400

1,489,975

1,040,509

1,271,095

1,289,025

285,476 331,206

51 | P a g e

ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)

Registration number 1999/014890/08

Annual Financial Statements at 31 July 2016

Notes to the Annual Financial Statements

Figures in R 2016 2015

9. Related party transactions

Amounts owed (to) / by the related party at year-end Transactions

Name 2016 2015 2016 2015

D&S Forensic Investigations CC - Ferreira D

DFIRLABS (Pty) Ltd - Jordaan J

Law@Work - Strydom C

16,000

-

58,138

178,979

-

-

-

-

-

-

- 18,240

The above mentioned directors rendered a professional service through their own company/close corporation and received remuneration from the ACFESA.

52 | P a g e

ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)

Registration number 1999/014890/08

Annual Financial Statements at 31 July 2016

Detailed Income Statement

2016 Figures in R 2015

Gross Revenue

Membership fees 2,770,981

1,218,093

5,506,442

9,495,516

2,535,557

1,042,041

4,491,061

8,068,659

Meetings and training sessions

AGM and annual conference fees

Other Income

Sales 269,195

160,401

-

118,274

60,405

20,175

110,100

279,212

2,133

Investment income

Sponsorships, donations and fundraising

Branding and marketing income

ACFE US Contribution

Profit on foreign exchange

129,574

250,329

-

809,499 590,299

10,305,015 8,658,958

The supplementary information presented does not form part of the annual financial statements and is unaudited

53 | P a g e

ASSOCIATION OF CERTIFIED FRAUD EXAMINERS SOUTH AFRICA CHAPTER (NON – PROFIT COMPANY)

Registration number 1999/014890/08

Annual Financial Statements at 31 July 2016

Detailed Income Statement

Figures in R 2016 2015

2.

Expenditure

Accounting fees

AGM and annual conference fees

Assessment rates and municipal charges

Auditor's remuneration

Bank charges

Computer expenses

Conference and training costs

Depreciation - Tangible assets

Discount allowed

Emoluments - Directors

Entertainment and consumables

Fines and penalties

Gifts

Insurance

Lease rental on operating lease

Legal expense

Loss on foreign exchange

Marketing and branding costs

Postage

Printing and stationery

Professional fees

Provision for credit notes

Repairs and maintenance

Salaries

Security

Telephone and fax

Training

Travel - International

Travel - Local

Total comprehensive income for the year

49,366

2,363,651

83,697

2,550

39,435

2,345,763

86,821

2,400

29,143

113,809

451,266

55,889

101,360

1,489,975

20,317

-

25,455

71,538

613,751

50,833

133,695

1,271,095

31,560

49,974

8,520 2,964

17,073

331,206

63,781

19,321

835,287

30,203

65,839

-

14,749

285,476

31,500

-

351,953

15,391

37,476

221,223

212,447

8,760 299,800

-

1,289,025

7,909 1,040,509

7,893

102,087

42,143

178,778

150,255

7,948,162

2,356,853

93,140

30,402

72,242

111,070

7,513,603

1,145,355

The supplementary information presented does not form part of the annual financial statements and is unaudited

54 | P a g e

ACFE SA CORPORATE MEMBERSHIP LIST 2016

Organisation Members CFE's

Absa Bank (Pty) Ltd 107 7

AngloGold Ashanti Ltd 17 4

Analytical Forensic Investigation Service 7 0

Arms-audit and risk management Solutions Pty Ltd 17 0

Auditor General of South Africa 61 4

Auditor General of Namibia 62 0

Bayport Financial Services 18 2

Basileus Consilium Professional Services 15 1

Bokang Consulting Services 4 0

British American Tobacco South Africa 15 0

Capitec Bank 21 4

EOH Forensic Services 69 21

Cell C 2 1

Combined Private Investigations CC 26 0

Comperio Forensic Services (Pty) Ltd 10 2

Consumer Profile Bureau (Pty) Ltd 14 0

CYANRE The Computer Forensic Lab 14 0

Deloitte & Touche 66 17

Department of Correctional Services 22 2

Department of Labour (Compensation Fund) 8 0

Department of Rural Development & Land Reform 18 0

Discovery 71 28

Duja (PTY) LTD 10 0

EMS Advisory (Pty) ltd 13 0

ENS Forensics (Pty) Ltd 16 4

Ernst & Young 94 12

Eskom Holdings Ltd 47 16

eThekwini Municipality 41 5

Financial Intelligence Centre 33 2

Fides Cloud Technologies (Pty) Ltd (iFacts) 2 0

First National Bank 113 7

Free State Provincial Treasury 143 7

55 | P a g e

Fundudzi Forensic Services (Pty) Ltd 6 0

Gauteng Province: Human Settlements 9 3

Gobodo Forensic & Investigative Accounting 33 10

Gauteng Provincial Treasury 39 4

Government Employee Medical Scheme (GEMS) 7 0

Government Pension Administration Agency 15 3

Hollard Life Assurance Co Ltd 32 4

Ideco Biometric Security Solutions 5 0

JGL Forensic Services Pty Ltd 8 2

KPMG Service (Pty) Ltd 208 8

KZN Provincial Treasury 18 2

Lesotho Revenue Authority 42 1

Liberty Group Ltd 30 7

Mazars Forensic Services (Pty) Ltd 8 3

Medscheme/Afrocentric Health 20 1

Mpumalanga Gambling Board 29 0

Mr Price Group Ltd 21 1

MTN 15 2

MultiChoice Support Services (South Africa) 14 0

Mutual & Federal 42 2

Nexus Forensic Services (Pty) Ltd 26 7

Nexia SAB&T 19 1

Office of the Public Protector 65 6

Office of the Public Service Commission 38 2

Old Mutual Group Forensic Services 39 24

Open Water 19 0

Outsurance 108 2

Procure 2 Pay Intellection 6 0

PWC 117 28

Prodogy SA (PTY) LTD 1 0

PSIRA 36 0

PSMA Holdings (pty)l td 23 0

Qhubeka Forensic Services 38 1

Risk Diversion 9 1

RW Forensic and Consulting 4 0

56 | P a g e

Road Accident Fund 47 0

SABC Ltd 8 3

SABRIC 18 4

SAICB 11 4

SANDF Department of Defense 20 2

SANLAM LIFE INSURANCE LTD 37 4

Santam 15 9

SARS: Enforcement 418 15

SASOL Group Assurance Services 7 1

SASSA 70 0

Sekela Consulting 11 4

SITA SOC Ltd Internal Audit 16 2

SizweNtsalubaGobodo 35 5

South African Police Service 214 12

Special Investigating Unit 153 7

SSG SECURITY SOLUTIONS (PTY) LTD 14 0

Standard Bank of SA Ltd 90 26

Telkom SA Ltd 54 3

The iFirm Trading & Projects (PTY) Ltd 12 0

Tshepo Forensic Services Africa 16 0

Transnet Freight Rail 19 6

Ubuntu Business Advisory and Consulting (Pty) Ltd 20 0

Unemployment Insurance Fund 53 1

Vodacom 27 7

Western Cape Government 14 6

57