Strategic Audit Techniques Incorporated is a locally based emerging small audit and financial consulting firm

© 2013 Strategic Audit Techniques Inc, South Africa . All Rights Reserved. E&OE. 

Our financial services division is attracting existing players into new lines of business, as well as new domestic and international institutions. Our new business development service involves carrying out feasibility studies to assist institutions understand the industry environment, regulatory requirements and the future business scenario, to enable them to take informed entry decisions

 Business Strategy

With the financial sector changing at an ever-accelerating rate, the competitive dynamics of the industry is evolving rapidly and the rules of the game are getting re-defined. While new technologies and distribution channels threaten to erode traditional power bases, the forces of consolidation are embracing most segments in the financial services market. Further regulatory developments are opening up markets whilst also upgrading norms to international standards. Strategic Audit Techniques Incorporated’s strategy framework assists in aligning business strategies to this challenging environment. The key services provided to existing as well as new financial service players include:

Strategy development, which involves articulation/clarification of vision and objectives, identification and evaluation of strategic options and selection of strategies. The focus areas include organization structure, competitive positioning, product/segment strategy, information technology, marketing and distribution, and overall business profitability.

Business plan formulation is designed to provide a comprehensive analysis of the organization's business units and the markets it operates in. The objective is to identify key business drivers, provide detailed guidelines for goal setting and formulation of action plans. We also assist new companies with license applications to the regulators

Business Transformation works on the process that the future is first created in the mind and when detailed and lived to its finest level, becomes reality. The entire process is highly structured. It begins with the CEO imagining the future desired direction at his organization. The future is detailed to a very fine level through milestones for each year.

 

The organization's management then revises the vision to a level which seems ambitious yet achievable. Major discontinuities in the environment, which could fundamentally change the nature of the industry, are assessed.

 

The entire firm is then geared to exploit these discontinuities. A clear transformation map is crafted which highlights the route the firm would adopt in various parts of its business as it goes ahead. The exercise is completed with the implementation of the designed transformation framework.

Risk Management

The risk management and control framework defines how a financial institution should organize itself to manage existing and potential risks. The focus at all times is on the provision of a tailored solution to meet an organization's particular needs.

 

Our risk management process assists an organization through all the steps required to define and implement effective risk management policies and procedures. We ensure that our clients understand the issues related to their risks through a continual process of information sharing and skills transfer.  The nature of services include:

 

Risk diagnostic tools that provides a rigorous independent assessment of existing risk management practices and plans for implementing regulatory guidelines in risk management. The diagnostic tool is tailored to provide clearly defined recommendations for overcoming weakness, and solutions to address fundamental gaps.

 

Asset Liability Management (ALM) capability tool involves risk diagnostic review to identify major issues and quantify the exposures of the organization. The second part of the exercise would be developing an ALM strategy, redesign of processes and developing action plans for implementation.

 

Credit Risk Diagnostic is designed to comprehensively test existing credit risk management practices, benchmark with best practices and provide clearly defined recommendations to address fundamental gaps.

Business Performance Improvement

The key challenge facing business and financial institutions is to create business capabilities in line with emerging requirements within the market. The BPI exercise synthesizes Strategic Audit Techniques Incorporated’s expertise in performance improvement methods, best practice solutions and industry benchmarks and trends.

 

Our BPI approach is strategic and focuses on assisting our clients to build a strong competitive position through:

Maximising revenue

Creating more business-focused processes

Reducing costs and cycle times to deliver services

Leveraging new IT capabilities

We have recognised that public sector procurement could be used by government as a mechanism to also achieve certain broader policy objectives such as black economic empowerment, local economic development spin-offs for small and medium sized business, skills transfer and job creation.

 

To achieve this, institutional and economic reform was necessary within two broad themes, namely, to establish principles of good governance in the area of supply chain management and to introduce a preference system to achieve certain socio-economic policy objectives.

 

We live in an increasingly competitive economic environment, and where changing legislation, and pressures to deliver services more rapidly and within the standards of accountability and transparency, whilst attempting to implement the right procurement system is never an easy task.

 

We at Strategic Audit Techniques Incorporated have come to understand this enduring pressure, and have developed a comprehensive solution which encompasses:

 

* Training and capacity building of staff, management and
   bid
committees.

 

* Provision of resources to manage the SCM process.

 

* Development or review of the SCM policy and procedure

   manual.

 

In addition, we have software that is simple, but comprehensive to manage your entire SCM processes, namely:

 

*  Database Registration (Web-base)

 

The competitive bidding process from advertisement to

    adjudication.

 

* Performance management, through the project-based

   management system

 OUR MUNICIPAL ACCOUNTING AND CONSULTING SERVICES

 

Every organisation requires accurate and timely information, to communicate pertinent facts. We don’t just offer an opinion, but see ourselves as a strategic partner to your unique business processes. The measure of our quality is evident in the approach that we apply to all the assignments undertaken, and is reflected in our service offerings below:

 

Performance Management

Performance management is of paramount importance to any organisation, more specifically municipalities. If the Municipality does not have these management tools in place, it could be at risk of comprising service delivery crucial to communities that they serve. At Strategic Audit Techniques Incorporated we pride ourselves in ensuring that accountability in terms of strategic objectives of the municipality are always maintained. Therefore the Service Delivery and Budget Implementation Plans are our area of expertise.

 

Annual financial statements

The MFMA requires municipalities to prepare and submit their annual financial statements for auditing within two months of the financial year end. The main contributing factors for non-compliance with the MFMA are the lack of capacity, staff constraints, and the implementation of Generally Recognised Accounting Practice (GRAP). Our software is specifically designed to ensure that compliance with current legislation and Accounting Standards are maintained, whilst the software has the capability to manage and update disclosure contents for GRAP and MFMA. We also provide resources to assist and capacitate municipal staff with the preparation of the Annual Financial Statements.

 

Audit Readiness Programme

Our audit readiness programme has been uniquely aligned to the requirements of MFMA Circular 50 – the Municipal Audit Evidence File. This programme was compiled by our valued resources that have serviced the Office of the Auditor General and are familiar with the necessary requirements.

 

Asset Management

Our powerful, yet easy to operate modular asset management system, manages assets from initial purchase through to disposal, and is termed the “cradle to grave” asset management system. The system is GRAP compliant, and combines highly detailed recording and reporting, essential for control, management and financial planning of assets. .We also provide resources to assist and capacitate municipal staff, with compilation of fixed assets registers, asset counts, revaluations and useful life estimations.

 

Compliance audits

With the implementation of the MFMA, and its 16 priorities, regulations and guidelines, it is imperative that the financial management systems and mechanisms of both municipalities and municipal entities are reviewed and amended periodically. This will enable municipalities to keep abreast with changes in legislation.

We have considerable knowledge of the following legislation and its amendments, and can therefore perform compliance audits, training and advisory services:

 

       Broad Based Black Economic Empowerment Act, No.53 of 2000.

      

       Local Government: Municipal Property Rates Act, 2004.

      

       Local Government: Municipal Structures Act, No.117 of 1998.

      

       Municipal Finance Management Act, No. 56 of 2003.

      

       Municipal Investment and Municipal Public-Private Partnership Regulations:

       Gazette No. 27431, 01 April 2005.

      

       Municipal Planning and Performance Management Regulations, 2001.

      

       Municipal Structures Act.

      

       Municipal Supply Chain Regulations: Gazette No. 27636, May 2005.

      

       Municipal Systems Act No. 32 of 2000.

      

       Preferential Procurement Act, 2001.

      

       Preferential Procurement Policy Framework Act, No.5 of 2000.

      

       Promotion of Access to Information Act, No.2 of 2000.

      

       Standard Operating Procedures and Best Practice.

      

       Treasury Regulations, 2005.

 

 

 

Policies and Procedure Manuals

Adequate policies and procedure manuals form the backbone of any organisation, both operationally and strategically. These policies and procedures must be continuously updated to ensure compliance with current legislation and amendments. We can assist with the review and development of policies and procedure manuals that best suit the environment of the municipality whilst ensuring compliance with legislation. Our services further extend to the training and “knowledge sharing” of legislation and best practice methods by means of workshops and “one-on-one” interaction with officials and councilors of the municipality.

Annual Municipal Budgets Section 24 of the MFMA requires a municipal council to approve its annual budget before the commencement of its budget year. Furthermore MFMA circular 48 requires that such budgets be prepared in the prescribed format. However, constraints such as skills and staff shortages hamper municipalities from meeting these legislative requirements. We can assist and capacitate municipal staff with the preparation of the annual budget and related budget policies.