CAPITAL

TRADE-OFF'S

CAPITAL TRADE-OFF'S

In the conduct of our activities, SAICA’s management and the Board must weigh up and accept the inevitable trade-offs between the six capitals, ensuring that over the long term, these decisions contribute to value creation and preservation, ensuring the continued relevance and sustainability of the Institute.

Apart from creating and preserving value, there are instances where value is diminished through our activities. When making decisions on how to manage our business, we consider the trade-offs between capitals: we aim to maximise positive outputs and outcomes and limit negative impacts.

 

Utilising our capital inputs in the most efficient manner informs our business model to optimise our capital outputs and outcomes for our stakeholders. At times tough decisions need to be made which are in conflict with some of the stakeholder needs in the short run. Making strategic trade-offs is necessary to ensure sustainability for the future.

 

Significant capital trade-offs during 2022 are illustrated below:

In the conduct of our activities, SAICA’s management and the Board must weigh up and accept the inevitable trade-offs between the six capitals, ensuring that over the long term, these decisions contribute to value creation and preservation, ensuring the continued relevance and sustainability of the Institute.

Apart from creating and preserving value, there are instances where value is diminished through our activities. When making decisions on how to manage our business, we consider the trade-offs between capitals: we aim to maximise positive outputs and outcomes and limit negative impacts.

 

Utilising our capital inputs in the most efficient manner informs our business model to optimise our capital outputs and outcomes for our stakeholders. At times tough decisions need to be made which are in conflict with some of the stakeholder needs in the short run. Making strategic trade-offs is necessary to ensure sustainability for the future.

 

Significant capital trade-offs during 2022 are illustrated below:

FINANCIAL CAPITAL, SOCIAL AND RELATIONSHIP CAPITAL

Increase in skills development spend

KEY CONSIDERATIONS AND FOCUS IN 2022

  • Our people are our greatest asset and there has been an increase in spend as people are encouraged to develop themselves and our effort to improve our transformation scorecard
  • See skills development spend and study assistance in the business model under human capital

TRADE-OFFS

  • Increasing investment in human capital can divert resources away from other investments that could have a more immediate and tangible impact on the Institute’s bottom line

POSITIVE IMPACT

  • Increase SAICA’S ability to innovate, attract and retain top talent
  • Build a resilient and agile organisational culture
  • Better capacitated people and improved BEE scorecard

NEGATIVE IMPACT

  • The increased spend was not financed by a reprioritisation of spending but by improved revenue collections and interest income

EFFECT ON BUSINESS MODEL/STRATEGY

  • Customised leadership interventions in response to the culture diagnostic exercise to enhance organisational culture
  • Enhancing performance culture by linking it to reward and recognition
  • An integrated approach to maintain employee engagement, create an enabling environment for staff and improve talent retention efforts

IMPACT ON STAKEHOLDERS

  • Members – enhanced member centricity and
  • Employees – engagement, enablement and experience

RISKS

  • No guarantee of return on investment
  • Poor management of change
  • Not implementing the learnings on the job

FINANCIAL CAPITAL, SOCIAL AND RELATIONSHIP CAPITAL

Increase in skills development spend

KEY CONSIDERATIONS AND FOCUS IN 2022

  • Our people are our greatest asset and there has been an increase in spend as people are encouraged to develop themselves and our effort to improve our transformation scorecard
  • See skills development spend and study assistance in the business model under human capital

TRADE-OFFS

  • Increasing investment in human capital can divert resources away from other investments that could have a more immediate and tangible impact on the Institute’s bottom line

POSITIVE IMPACT

  • Increase SAICA’S ability to innovate, attract and retain top talent
  • Build a resilient and agile organisational culture
  • Better capacitated people and improved BEE scorecard

NEGATIVE IMPACT

  • The increased spend was not financed by a reprioritisation of spending but by improved revenue collections and interest income

EFFECT ON BUSINESS MODEL/STRATEGY

  • Customised leadership interventions in response to the culture diagnostic exercise to enhance organisational culture
  • Enhancing performance culture by linking it to reward and recognition
  • An integrated approach to maintain employee engagement, create an enabling environment for staff and improve talent retention efforts

IMPACT ON STAKEHOLDERS

  • Members – enhanced member centricity and
  • Employees – engagement, enablement and experience

RISKS

  • No guarantee of return on investment
  • Poor management of change
  • Not implementing the learnings on the job

FINANCIAL CAPITAL, SOCIAL AND RELATIONSHIP CAPITAL, HUMAN CAPITAL

2021 APC exam forensic investigation

KEY CONSIDERATIONS AND FOCUS IN 2022

  • In March 2022, SAICA hired Webber Wentzel to advise and appoint a forensic investigator, Integrated Forensic Advisory Services (IFAS), to audit and investigate whether SAICA followed proper policies and procedures in procuring goods and services for the 2021 APC exam

TRADE-OFFS

  • An internal forensic audit can be costly, depending on the scope of the audit and the resources needed to complete it

POSITIVE IMPACT

  • Establish root causes of control failures which may have gone undetected and identify response strategies to strengthen controls and prevent the recurrence of similar failures
  • Strengthen the SAICA brand
  • Mitigation steps taken by Management have resulted in the successful presentation of subsequent ITC and APC examinations, including the APC examination presented on 14 December 2022

NEGATIVE IMPACT

  • Significant amount of time and effort on the part of SAICA Board, employees and service providers during the six-month investigation

EFFECT ON BUSINESS MODEL/STRATEGY

  • Increased collaboration across functional teams to think holistically and consider the impact of their decisions on the overall organisation, creating a more integrated approach to problem-solving
  • Enhanced organisational efficiencies, additional controls and strengthened risk management will mitigate against possible failure in the future
  • Increased resources provided to the Examination Department

IMPACT ON STAKEHOLDERS

  • Members
  • Employees

RISKS

  • No guarantee of return on investment
  • Poor management of change
  • Challenges with implementing recommendations

FINANCIAL CAPITAL, SOCIAL AND RELATIONSHIP CAPITAL, HUMAN CAPITAL

2021 APC exam forensic investigation

KEY CONSIDERATIONS AND FOCUS IN 2022

  • In March 2022, SAICA hired Webber Wentzel to advise and appoint a forensic investigator, Integrated Forensic Advisory Services (IFAS), to audit and investigate whether SAICA followed proper policies and procedures in procuring goods and services for the 2021 APC exam

TRADE-OFFS

  • An internal forensic audit can be costly, depending on the scope of the audit and the resources needed to complete it

POSITIVE IMPACT

  • Establish root causes of control failures which may have gone undetected and identify response strategies to strengthen controls and prevent the recurrence of similar failures
  • Strengthen the SAICA brand
  • Mitigation steps taken by Management have resulted in the successful presentation of subsequent ITC and APC examinations, including the APC examination presented on 14 December 2022

NEGATIVE IMPACT

  • Significant amount of time and effort on the part of SAICA Board, employees and service providers during the six-month investigation

EFFECT ON BUSINESS MODEL/STRATEGY

  • Increased collaboration across functional teams to think holistically and consider the impact of their decisions on the overall organisation, creating a more integrated approach to problem-solving
  • Enhanced organisational efficiencies, additional controls and strengthened risk management will mitigate against possible failure in the future
  • Increased resources provided to the Examination Department

IMPACT ON STAKEHOLDERS

  • Members
  • Employees

RISKS

  • No guarantee of return on investment
  • Poor management of change
  • Challenges with implementing recommendations
Change in service provider for Ushintsho

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SAICA Integrated Report 2022.
All Rights Reserved.

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SAICA Integrated Report 2022. All Rights Reserved.

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Head Office