ADVISORY SERVICES - Tholisiwe Chartered Accountants Inc

ADVISORY SERVICES

Fixed Asset Management Solutions

We offer fixed asset management solutions which include the following services amongst others:

Asset & lease register reviews

Physical verification of fixed assets

Tagging of fixed assets with updates to the register

Geolocation of fixed assets with updates to the register

Design and implementation of policies and procedures which will ensure accurate data retention and audit trail

Implementation of an asset management system which will ensure
– Improved inventory control
– Improved asset management & financial planning
– Improved purchasing information
– Optimum asset utilisation

Reconciliation of the asset management system to the financial systems

Preparation & maintenance of fixed asset registers

Preparation of financial statements
This includes:

Preparation of monthly financial reports and updating of financial records, including monthly management accounts and asset registers

Independent compilation of annual financial statements according to IFRS, GRAP, GAMAP and various other prescribed accounting policies (including consolidated financial statements)

Post-general ledger “record” accounting, such as assistance with period close, trial balance compilation, reconciliations, and data gathering and analysis

Processing journal entries for compliance with the relevant accounting standards

Streamlining of the month end close processes resulting in efficiencies and improved timelines

Preparation of cash flow forecasts

Preparation of budgets
We provide assistance with the preparation of the annual budgets and related budget policies in line with the PFMA and MFMA for all entities within the public sector.

Operation clean audit
In response to the number of modified audit opinions in the public sector, we have developed an audit readiness/operation clean audit service line. Our team of professionals specialize in assisting clients to resolve prior year qualifications and shortcomings identified in their audit reports. Our approach is as follows:

We assess the current status which includes identifying the root cause of the problems identified;

Design and implement a plan to assist clients achieve audit readiness; and

Offer support during the audit process to ensure that all matters arising are dealt with appropriately

Operational policies and procedures
We offer the following services:

The design and implementation of financial policies and procedures manuals that best suit the
environment of the organization whilst ensuring compliance with legislation as well as enhancing
document retention and ease of access of audit trail;

Training and “knowledge sharing” of legislation and best practice methods by means of workshops
and “one-on-one” interaction with designated officials;

Overseeing the implementation of policies and ensuring that responsible officials are fully aware
of their responsibilities in order for the designed policies and procedures to work.

Assistance with the Audit of Predetermined Objectives
Our team of professionals have a wealth of experience in public sector performance management systems and the auditing thereof. These individuals are familiar with the procedures and processes adopted by the Auditor-General in the auditing of predetermined objectives and are therefore ideally placed to assist any entity within the public sector in ensuring that sufficient and appropriate evidence exists to facilitate the audit of predetermined objectives.

Secondment of qualified staff
Several of our team of professionals have been seconded to various entities within the public sector and therefore possess the necessary skills, experience and knowledge to assist at an administrative and financial expert level.

Risk management
As part of our risk management service offering, we can assist management and those charged with governance with the following tasks;

Sourcing and interviewing potential members of various governance committees;

Risk identification, risk rating and risk management throughout an organisation;

Development, implementation and monitoring of 3 year strategic plans;

Review and enhancement of internal controls in place over key business processes;

Going concern assessments; and

Liquidity and solvency checks

Data management
We are able to assist clients in achieving optimal data management to ensure that IT systems are complimentary to business efficiency. This service offering includes;

A check on the hardware in place to ensure it is up to date and fully functional and that all
functionalities are being optimally used and that there are no hardware related bottlenecks to
business processes;

An assessment of the software in place including version control, utilization of available functionalities
(or redundancy thereof), as well as compatibility with available hardware;

A vulnerabilities check against modern security norms;

Compliance with industry regulations where applicable;

An assessment as to whether the IT environment has been configured correctly;

We make use of computer-assisted audit techniques (CAATS) to analyse data and to provide
insightful reports into various aspects of a business.

Supply Chain Management
We are able to assist clients in complying with Supply Chain Management (SCM) regulations by offering the following services;

We can design, and assist in the implementation of SCM policies and procedures in line with
Treasury Regulations;

We can perform a compliance and weak points check on SCM policies and procedures currently in
place at an organisation;

We can test the operating effectiveness of SCM policies and procedures and report back to those
charged with governance; and

We can offer training on SCM to ensure that regulations are understood by all staff who are part of
the purchasing process

Strategic and business planning
We can assist entities in formulating 3-5 year business plans either to comply with regulatory and/or funding requirements (e.g. when business plans are a prerequisite for loan applications) or to assist in defining the focus areas and direction of the company in the short to medium term. Areas where we can assist clients include;

Drafting of the entire business plan;

Capital investment planning;

Working capital management;

Cash flow projections;

Cost management; and

Customer relationship management

Corporate governance
We can assist those charged with governance with the following services amongst others:

Implementation of the King 3 code on corporate governance through the various board committees;

We can perform a compliance check to see if the governance policies are in line with the King 3
code and whether these policies are being adhered to; and

We can provide guidance on the composition of the board and the various sub-committees and
assist in the recruitment of suitably qualified board members to fill any vacancies

Accounting services
We offer a number of services including inter alia;

Bookkeeping;

Preparation of monthly management accounts; and

Payroll management

Due diligence
We have the skills to perform a comprehensive due diligence on any entity and produce a report outlining the key risks and opportunities identified. This is particularly useful for companies involved in mergers and acquisitions. The report would ordinarily cover the following areas;

Sustainability of revenue streams;

Variable and fixed costs;

Cash generating cycle;

Age and state of fixed assets;

Recoverability of assets;

Assessment of IT environment;

Human resources review;

Tax and compliance review;

Contracts review;

Liquidity and solvency assessment; and

Threats to the business’ ability to continue as a going concern

Company and asset valuations
We have the skills and experience to perform valuations on individual assets as well as entire companies in the case of a shareholder buy out or any other transaction. Our methodologies for performing the valuations are in line with the SAICA issued guide on asset valuations and generally accepted best practices.

Pro forma financial information
We are able to prepare pro forma financial information outlining the financial effects of a transaction, both before and after it has been accounted for. This is useful as it will show parties to a merger or acquisition how the key ratios (e.g. Earnings Per Share and Net Tangible Asset Value Per Share) will be affected by the transaction. We are able to prepare this information in the format accepted by the JSE.

Forecast financial information
We can assist companies in preparing forecast financial information in line with the International Standard on Assurance Engagements (ISAE 3400) applicable to the Examination of Prospective Financial Information.

Training
Our team is well placed to give training and facilitate skills transfer on a number of topics including inter alia;

International Financial Reporting Standards (IFRS)

Generally Recognised Accounting Practice (GRAP)

Supply Chain Management (SCM)

Public Finance Management Act (PFMA), including Treasury Regulations

King 3 Code on Corporate Governance, etc

Transaction Advisory Services
This includes:

Project management;

Financing options and building financial models;

Transaction structuring and capital raising; and

Transaction advisory to financial close