The Accounting Standards Board (ASB) Directive 12 requires that all public entities, incl
As a result of the withdrawal of the standards of GAAP as from 1 December 2012, public Technical & Vocational Education and Training (TVET) colleges (previously known as Further Education and Training Colleges - FET Colleges) will in future have to use a different accounting framework. It is probable that this framework will be the standards of Generally Recognised Accounting Practice (GRAP). The Accounting Standards Board (ASB) has issued ED 115 in this regard. This ED proposes that TVET colleges should apply GAAP for the period 1 January 2013 to 31 December 2013 and that they should apply GRAP from 1 January 2014.
The Standards of GRAP is the prescribed accounting reporting framework for the majority of entities in the South African public sector. These Standards are set by the Accounting Standards Board (ASB). GRAP is based on the International Public Sector Accounting Standards (IPSAS) which are the public sector equivalent of the International Accounting Standards (IAS) / International Financial Reporting Standards (IFRS).
The pervasive effect of the application of the Standards of Generally Recognised Accounting Practice (GRAP), on the deliverables of any financial department is far greater than just the preparation of GRAP compliant Annual Financial Statements. The effect of GRAP compliance also has a fundamental impact on the entity’s Asset Register, Budget, Standard Chart of Accounts, and on training and capacity development of both finance and non-finance staff.
As GRAP is being phased in as the applicable accounting reporting framework for the South African public sector by the Accounting Standards Board, public TVETcolleges need to be prepared for this transition. Following the approval by the Minister and the Department of Higher Education and Training (DHET), Public TEVT Colleges are required to comply with GRAP as from 1 January 2014.
From our experience in assisting public sector entities with compliance to GRAP, as well as with services related to financial management, accounting and reporting, and governance functions, we would deem AFS, Asset Registers, Budgeting, Standard Chart of Accounts (SCOA), and training and capacity development , as the top 5 areas which are critical for GRAP compliance:
Ducharme Consulting’s successful assistance with GRAP implementation for over the past decade has proven invaluable in delivering practical accounting solutions in to the National Treasury, departments, legislatures, provincial treasuries, municipalities, Schedule 3A and 3C entities, trading entities and also TVETcolleges. DC has recently been appointed by the East Cape Midlands FET College and also by the Northern Cape Rural FET College to assist them with preparing GRAP compliant AFS and asset registers for the year ending 31 December 2014. Make sure that you don’t miss out on the opportunity to also secure our value added services.
It is imperative that public TVET colleges become aware of the requirements of GRAP, how these requirements differ from GAAP and what needs to be changed to ensure successful implementation of GRAP. Ducharme Consulting can help you, just like the other 100 plus public sector entities we have successfully assisted with GRAP implementation in the past, by:
ASSESS: Onsite GRAP Readiness Assessment to determine your GRAP compliance:
This assessment will indicate where the TVET currently deviates from the GRAP requirements. This includes an assessment of financial reporting (GRAP compliant Annual Financial Statements, Standard Chart of Accounts, previous audit report findings), asset related matters (GRAP compliant asset registers), Budget and budget information included in the AFS, GRAP impact on accounting policies,)
Ducharme can assist and support TVET Colleges with the pre-implementation, implementation and the post-implementation phases pertaining to first time adoption of GRAP and compliance: Click here to read more and contact details as to our support...
GRAP Readiness Assessments |
GRAP support & application
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GRAP training & capacity building
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Pre-implementation |
Implementation |
Post-Implementation / Continuous development |
GRAP Gap analysis and GRAP implementation plans pertaining to:
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