THE CA Charter (chartered accountantancy profession charter) has been approved by the charter council and will be forwarded to the dti for gazetting in terms of section 12 of the act.
Congratuatlions to all concerned!
This is certainly the best charter we have seen so far. It follows the dti codes of good practice, but where appropriate it has differing weightings. For example accounting firms do not do that much procurement so the weighting for procurement has dropped to 10 points. On the other hand, it has ben identified that there is a serous shartage of black chartered accountants so both skills development and employment equity has been increased to 20 points each from 15 points. The extra 5 points on skills development is earned by spedning in bursaries to encourage more entrants to the profession.
Enterprise development still has a weighting of 15 points, but the charter recognises that accounting firms do not necessarily show profits – most profits are paid topartnes in the form of salaries or bonuses. As a result the target is now the higher of 3% of NPAT (net profit after tax) or 0.375% of turnover. his implies that a firm with an annual turnover of R10 million will earn ED points if it spends at least R37 500 (0.375% of revenue) on ED.
This is a good charter is all respects – it follow the codes and the definitions and uses good arguments and empirical evidence where it needs to change the weightings.
It even recognises the role of verification agencies:
Verification of compliance
1 In terms of statement 000 of code series 000, verification of B-BBEE compliance is
encouraged and to this end the dti will from time to time issue clear guidelines on the
2 The Charter Council will report to the dti annually on the consolidated position of the CA
sector. It will thus be incumbent on the CA sector to provide the Charter Council with their
individual scorecards. These scorecards must either have been verified by an accredited
verification agency, or the relevant entities should be able to provide evidence or
documentation to substantiate all measured items.
The charter is saying that a firm can use EITHER an accredited verification agency OR must be able to provide evidence to substantiate all measured items.