DTI: 2 day FET Colleges' GRAP Implementation Workshop


DTI FET GRAP 2 Day Implementation workshop

FET COLLEGES GRAP IMPLEMENTATION WORKSHOP:

THE IMPACT OF GRAP ON FET COLLEGES

According to the GRAP reporting framework Public Further Education Training (FET) Colleges should prepare their annual financial statements (AFS) for the year ending 31 December 2014 in accordance with the GRAP standards. The Ducharme Training Institute is currently assisting a number of FET Colleges with GRAP implementation and has developed a two day GRAP implementation workshop which will help preparers of AFS to find answers to the following questions currently being asked by FET Colleges:

  • What are the differences between the GRAP and the GAAP standards?
  • What are the typical GRAP implementation challenges that FET colleges are struggling with?
  • Is the Asset Register as at 1 January 2014 GRAP compliant?
  • How should we disclose budget information in the AFS to ensure that it is GRAP compliant?
  • Are there transitional provisions and exemptions that can be used in the GRAP implementation process?

Providing practical advice and answers to GRAP implementation questions
The DTI will be presenting a number of two day workshops across South Africa which will provide practical answers to the questions set out above.

Q1. What are the differences between the GRAP and the GAAP standards?
Participants will be provided with a detailed (1000 page) manual on the implementation of each of the GRAP standards. This manual provides the requirements of each GRAP standard as well as a detailed set of standard operating procedures which can be followed to ensure compliance with the requirements of the standards. This manual will capacitate FET colleges to amend their financial and administrative processes related to accounting conversion considerations such as reclassifications, derecognition of items, measurement, calculations, financial statement compilation and disclosure and audit file supporting documentation.

Q2. What are the typical GRAP implementation challenges that FET colleges are struggling with?
Participants will be provided with a detailed document setting out GRAP implementation challenges impacting the annual financial statements. These include overarching GRAP accounting groupings (e.g. assets, liabilities, revenue, expenditure), classification aspects (such as exchange / non-exchange based transactions), unique GRAP applications (e.g. heritage assets, accounting treatment of government grants and subsidies (conditional and unconditional), unresolved accounting and control issues (such as the correction of incomplete and inaccurate moveable and immovable asset / loan / lease / grant registers and other similar internal control deficiencies that will have to be addressed to ensure fair presentation in GRAP compliant financial statements).

Q3. Is the Asset Register as at 1 January 2014 GRAP compliant?
Participants will be provided with a number of practical examples of how the asset registers of FET colleges may currently deviate from GRAP requirements as well as detailed guidance on HOW TO address these deviations.

Q4. How should we disclose budget information in the AFS to ensure that it is GRAP compliant?
Detailed guidance will be provided on how to disclose budget information in the GRAP compliant AFS in accordance with the requirements set out in GRAP 24. It is vital to note that to comply with the requirements of GRAP 24 an FET College will in future need to ensure that its budget contains a complete set of budgeted financial statements such as a budgeted Income Statement, Balance Sheet and Cash Flow Statement.

Q5. Are there transitional provisions and exemptions that can be used in the GRAP implementation process?
Detailed guidance will be provided to attendees on the transitional provisions that should be used on first time application of the GRAP standards. This guidance will be mainly drawn from the ASB Directive 2. Guidance will be offered on issues such as prospective versus retrospective application and transitional exemptions that may be applied in the preparation of the first set of GRAP-compliant annual financial statements and also on specific aspects such as the recognition, measurement and disclosure as part of the first time application of GRAP.

Inhouse tailored training

Arrangements can be made to provide an in-house workshop, where a sufficient number of attendees are available from an entity or group of entities. A Ducharme Training Institute certificate of attendance will be issued after completion of the two day workshop. This workshop constitutes 12 hours for CPD purposes.