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To address the problems and gaps that exist in SA's current schooling system, Saica, its staff and the profession as a whole joined forces to establish the Thuthuka Education Upliftment Fund to organise and offer much-needed school camps where students can hone their maths and English skills. In another initiative, students who fail (especially the CTA exam) before they write the board exam receive assistance and support.
"Then there was Eden Trust, to address the training of accountants, an initiative that taught us a number of lessons of what works and what doesn't. Thuthuka emanated from the realisation we needed a more integrated approach to training accountants from the underprivileged community, especially children with potential but who'd been handicapped by the circumstances under which they grew up - socially as well as the education system in certain areas," says Nxasana.
"This approach didn't just assume students had all the necessary capabilities and support to pass as CAs: it also recognised they needed both decent academic support as well as assistance in other areas, including life skills and skills to cope with the work load at university, especially where students work under very limited supervision and really have to do things on their own."
Thuthuka was very specific in terms of its objectives. "First and foremost it wanted to identify students with potential. As matric results were found to be an insufficient indicator of potential, a whole battery of tests are run to identify potential even among students with poor pass rates," Nxasana says.
Thuthuka was also promoted in certain targeted rural areas and townships to bring an understanding the fund wasn't trying to find the easy way out by targeting students who had already had good schooling.
When Thuthuka launched in 2005, partnerships had already been formed with three universities (Cape Town, Johannesburg and Wits) that had been invited to submit proposals, which included certain key criteria. Each university had to provide a programme manager, fully dedicated to supporting the Thuthuka students, as well as full-time accommodation on campus.
"Clearly, the programme attempted to fix problems created over 13 years of schooling in a very limited period of time so that the Thuthuka students could be placed on the same, if not better, footing than students who had passed through a sound and efficient education system," says Nxasana. As the programme bedded down more universities came on board so that, currently, eight universities proudly participate in Thuthuka.
The same criteria and success factors of the programme are still in place, says Nxasana, and still work extremely well. "That's why we've managed to raise funding from the private sector, Government and the profession. The average pass rate over a three-year university programme is more than 70% - significantly above similar students who don't receive the Thuthuka support. Thuthuka has become a flagship programme in all the universities where it runs."
Nxasana adds: "One can't underestimate the role the staff at Saica and those at the transformation unit have played in making Thuthuka such a success. Their commitment and energy are exemplary and have helped a great deal in selling the concept.
This year saw the first 25 out of 28 "Class of 2005" students pass Part 1 of the qualifying examination towards becoming CAs. This translates to an 89% pass rate and a 10% contribution to the black African passes in Part 1 of the CA examination. Thuthuka currently supports 936 students at eight partner universities. The intake of new students is now more than 300 a year.
"I honestly believe we'll see a significant number of Thuthuka graduates remain in SA so they can fulfil their responsibilities, acting as role models, adopting social responsibility initiatives and making a contribution as future leaders of the country," says Nxasana. CHARTERED ACCOUNTANTS play a major role in growing the South African economy, either through establishing their own businesses, where they employ other people, or by training other CAs who, more often than not, become CFOs or CEOs. So says Saica CEO Matsobane Matlwa. A recent report showed that of the top 200 JSE-listed companies more than 90% of the CFOs, 25% of the directors and 22% of CEOs were CAs - clearly illustrating the significant role they play in the economy, says Matlwa.
Since 2001, when Saica introduced the Thuthuka Education Upliftment Fund, the association has contributed significantly to alleviating the shortage of CAs in SA and on the continent, he says. "Thuthuka is an excellent model and, hopefully, more funding will be made available so that more students who would otherwise have no chance of becoming CAs can benefit from it."
Matlwa cites a long list of Thuthuka milestones:
* The Thuthuka Bursary Fund has awarded bursaries to more than 1 500 talented students who want to qualify as CAs.
* In 2009, Thuthuka students who participated in a repeat programme funded by the Seta for Finance, Accounting, Management Consulting and other Financial Services achieved a 77% pass rate in Part II of the Financial Management Qualifying Examination (QE 2). Other first-time candidates achieved a 55% average. The national average for African candidates was 49,4% and Thuthuka-supported African candidates achieved a 63% pass rate.
* There are currently more than 860 students at universities funded by Thuthuka and studying towards qualifying as CAs. More than 752 of them are undergraduates and 117 honours students.
The fact that Thuthuka is driven by donor and Government funding is a major challenge to ensure enough CAs - particularly African and coloured CAs - are produced to meet the growing demand. "On the one hand, you need capable students from the schools and on the other willing and able donors and funders if you want to have enough students on the programme to meet the demand. To match those needs requires a fine balancing act," Matlwa stresses.
Another potential stumbling block is the capacity of universities to accommodate the number of students Thuthuka may need into the future. "We need to be mindful we don't bring more students to the universities than they or accounting firms can accommodate," he says.
As a member of the Global Accounting Alliance (GAA), SA ranks among the top three countries in terms of the quality of a country's CAs, Matlwa often hears on trips overseas. "So although we're a small country, in terms of standards and quality we're playing in the big league, along with countries such as Canada and Australia. In particular, we're respected for our technical ability."
The authorities are well aware SA's poor mathematics and science results seriously need to be addressed and rectified.
"Education authorities are also aware of the fact many students are no longer following core maths but maths literacy, which will be to the detriment of the profession. If you want to be a CA and compete on an equal footing globally you need to study core maths and be proficient in English."
Is Government, the private sector and NGOs doing enough to rectify the situation by improving maths and science education to produce more CAs?
"If you talk to them directly they'd make you believe so. But it's an expensive exercise to follow the Thuthuka road. Those who participate do so as part of their social responsibility and/or because they believe it's the right thing to do. And we at Saica are very grateful for each and every contribution."
Though skills development may be part of the solution for SA, education is the cornerstone for sustainable development, Matlwa says.
Students need to realise the road ahead is steep but the rewards and benefits worth the effort, says Matlwa. "When they look back it will be worth every setback and tear - because it made you marketable and respectable." FINANCIAL OBSERVERS agree there's a direct correlation between the soundness of South Africa's banking system - which clearly weathered the international economic crisis far better than its foreign First World counterparts - and the strength of this country's accounting profession.
This, in turn, speaks volumes for the quality of chartered accountants produced in SA: people who can hold their own internationally, says Chantyl Mulder, senior executive: transformation, growth and professional development at the SA Institute of Chartered Accountants (Saica).
"Statistics speak for themselves: 20% of our CAs are working overseas as foreign companies clamour for them. This, in itself, says this small country at the tip of Africa is actually getting it right," says Mulder.
Sadly, however, we don't have enough of them and we don't have enough black CAs. "Of the 37 000 CAs in the eastern region of southern Africa, 30 000 are South African. So clearly there's a massive shortage of CAs in Africa, according to a world report on some of the developing economies in the region. That's why many of those countries are beset with economic and other problems," Mulder says.
It's SA's public sector in particular that's suffering from a dearth of qualified CAs - simply because there are too few to go around, resulting in qualified audit reports at many Government departments.
"But if we want to remain a global player and count among the best in the world in terms of the CA profession it certainly doesn't help to suggest we should drop standards and 'Africanise' the qualification. Nor do away with the final qualifying exam - a prospect that's previously been punted. That's sacrilege!
"We must protect standards at all costs. At the same time, we must grow the CA profession aggressively, particularly in terms of previously disadvantaged South African groups. This doesn't mean white or Indian students should be discouraged from entering the profession - we need each and every CA the system can produce," stresses Mulder.
The big problem is the limited number of African and coloured children in model C and private schools. "Rural schools, clearly, are a huge problem. There are many clever 'diamonds' in the rural areas who, through no fault of their own, have no access to a better education," Mulder says.
And for the very reason there are so many "diamonds" in rural areas with no hope and few opportunities, Saica prefers to work in those areas. "We go out and identify those children. And we place them at Thuthuka-accredited universities with full scholarships. Sure, that's incredibly expensive - but proper education and funding are the only sure routes to success.
"There's no quick fix: no magic wand. People tend to think that if we pay for 10 students we're going to get 10 students out of the system. Not so. The university statistics demonstrate you'd get two out of the 10. If you take the markedly superior Thuthuka statistics about five or six make it through the system.
"For us, that's not such a poor return on the investment. African children from rural areas do have a disadvantage and do need extra time and support to assist them to become the stars they have the potential to be."
At the same time, Mulder says the "lame and lazy" aren't tolerated. Saica strives to weed them out quickly, preferring to work only with committed, dedicated students who really value education and who want to make a difference.
Mulder emphasises sustainable funding remains a major challenge. "At the end of 2009 the profession was faced with a serious problem, as we hadn't received funding from our Seta to fund the postgraduate programme. We accordingly had 150 unfunded postgraduate Thuthuka students. Strategic decisions had to be taken. Was there a need for us to cut our first year intake of students by 300 in 2010, which in turn would have a devastating effect on our pipeline, or do we go ahead and seek funding from all possible avenues?"
Through much effort from the Association of Black Accountants of Southern Africa, African Women Chartered Accountants, certain members in the CA profession, Absa, Development Bank of Southern African and SA's Higher Education and Training department, through the National Skills Fund, came to the rescue.
Despite the ever-pressing funding issue, Saica - through Thuthuka and its school feeder programmes - already supports more than 1 000 students on its undergraduate programme, with 120 students in Mafikeng and just under 400 in Limpopo.
"Ultimately, it's not about helping one person in a rural community, it's about the 'multiplier' effect. By uplifting and inspiring success in one student from a rural community, between seven and 10 people within that community will eventually benefit. It's thanks to the investment made by many donors that more than 1 000 students are part of the Thuthuka legacy - a glittering journey to success."
IF THERE WAS EVER a heart-warming, inspirational story in South Africa The Hope Factory in Port Elizabeth fits the bill. Perfectly. Thanks to the generous support of Saica and other investors, this leading enterprise development programme - which started off in a garage but has evolved into a flagship enterprise development initiative of Saica - has trained almost 700 entrepreneurs with an 87% placement rate. Up to15% of those joining the Factory's development programme go on to become entrepreneurs with their own sustainable businesses.With all its courses approved by SA's Labour Department, The Hope Factory ranks as one of the most successful entrepreneurial development programmes in the country. The Argus's Angel of the City award in 2004, The Old Mutual/SABC2/Sowetan Community Builder of the Year (2005), the Shell/Gibs Social Entrepreneur of the Year (2007) and runner-up in the Southern African Social Entrepreneur of the Year (2009) bear testimony to that.
"By training previously disadvantaged men and women to become entrepreneurs we not only create hope (hence the name) but we also develop, empower and inspire them to become self-reliant and productive, thereby taking ownership of their future," says Saica enterprise development project director Marion Pearce.
"During the first phase men and women are trained in a 20-week course in technical, business and life skills to ensure a solid foundation for entrepreneurial development. The centre trains 64 people per intake, with two intakes a year totalling 128 trainees," says Pearce.
Technical skills training includes sewing, pattern making, paper products, beadwork and crochet; business skills focus on basic entrepreneurship and small business skills; and life skills training involves communication and interview skills, time management and HIV/Aids.
After graduating from the 20-week course trainees move into the job creation side. "We have a fully-fledged corporate gifts division that manufactures, markets and sells items to a range of corporate clients, big and small, on a national - soon also international - level," says Pearce.
Through their entrepreneurial training and working experience in phase two, trainees learn all about working, working life, time and money management to ensure they're sufficiently equipped when they later venture out on their own, she adds.
From phase two, trainees are encouraged to move to the third phase, where the independent units are spun off and trainees basically become entrepreneurs in their own right. During this phase the emphasis is strongly on mentorship support, as well as access to networks with other organisations to obtain finance, other forms of assistance (such as business cards) or further skills training.
Funding for Saica's enterprise development programme comes from companies that can claim 15 to 25 points under the enterprise development category on the black empowerment scorecard. "Though they score in terms of the empowerment scorecard, companies that assist with funding are genuinely interested in enterprise development as a cornerstone for SA's future success," says Pearce.
THERE ARE STILL too many students at school level who aren't attaining the mathematics and English grades - which blocks their entry to university - and who are struggling with numeracy and literacy skills to guarantee their success, says Ajen Sita, chairman of the Thuthuka Education Upliftment Fund (TEUF) and audit head at Ernst & Young."We've learnt that through partnerships with universities and firms we were able to create a sustainable model of funding and job creation, almost guaranteeing jobs for CA students. So our intention is to also partner universities and schools so the latter could become feeder schools to the universities," says Sita. This will allow universities to become more closely involved with the schools, their teachers and students to promote careers in commerce and accounting and open doors to deserving students.
"If we can build that pipeline and invest in kids at a school level we can get a better quality of person applying for entrance to universities and therefore better chances of getting accepted and working themselves through the system," Sita says.
As it, together with other Thuthuka projects and initiatives, will also need Government support it's already being engaged to that end. Thuthuka's success track record in getting people qualified and making an impact on the transformation of the profession and stand it in good stead in also getting a school programme going, says Sita.
Through Thuthuka's maths and science development camps great strides have already been made in addressing the problem of maths and science proficiency at school level. At these camps - mainly in the Eastern Cape - teachers and students are brought together with the intention to provide supplementary teaching to students by professionally qualified people. At the same time, teachers receive additional support to assist them with further development which, in turn, ensures the ongoing sustainability of the system.
"We typically would pick a whole host of schools and bus the learners to a central point where the teaching is provided. We try and hold at least three camps a year for schools in the area, obviously trying not to interfere with the schools' programmes. So the camps typically happen over weekends and during school holidays."
Sita says the maths and science camps are well attended. Apart from raising the profile of, and interest in, the profession at school level, to date the camps have helped thousands of disadvantaged students to significantly improve their maths and English skills, many then moving on to university well-quipped to become chartered accountants and further boost the transformation of the profession.
Education Upliftment Fund
AS A WHOLLY OWNED organisation established by Saica in 2002 the Thuthuka Education Upliftment Fund (TEUF) seeks to consolidate, strategise and drive the growth and transformation efforts of the profession. The transformation process can only be achieved through the consolidated efforts of all stakeholders - from firms to higher education institutes, to the students and learners themselves and to Saica.
"Thuthuka" is a Zulu word meaning "to develop" - indicating the action-based perspective with which transformation is being driven. Since its inception in 2002 the Thuthuka initiative has grown from one provincially based project to more than 16 projects (counting the Department of Science & Technology-Thuthuka maths and science development camps each as a separate project: nine in total) throughout South Africa.
Says Ajen Sita: "The number of potential candidates reached is significant and the results of the programmes are providing indications of the impact to be made. This has been achieved through Thuthuka's ability to identify the salient barriers and to devise and implement programmes that address those barriers effectively. While growth in projects is imperative, increasing impact, achieving sustainable funding and nationwide expansion remain critical objectives of the TEUF."
