INSTITUTE OF CHARTERED ACCOUNTANTS OF ZIMBABWE

STANDING ORDERS OF COUNCIL

(decisions taken which have ongoing effect or effect as a precedent.)
August 2009 - May 2015

Standing Orders of Council – August 2009 to May 2015

June 2004

1.MEMBERS

(a)Affiliate Membership (Coun22M - minute 4 - 4.11.99)

Practising firms to have a detailed list of Partners, clearly stating the qualifications of each partner and the services which they will render to clients. The difference between the partners should be clearly stated.

(b) Honorary Life Members
(i)It was agreed in principle that the election of Honorary Life Members should not be an annual event and that the election should only be recognised where there was exceptional service to the profession and that the person deserved meritorious award.
(COUN17M minute 6.2.2.1)

(ii) In principle, the election of Honorary Life Membership should not be an annual event and the election should only be recognised where there was exceptional service to the profession and that the person deserved meritorious award. (COUN41M minute 10)


(c)Surcharges (COUN[91-92] 4th mtg minute 5.5.3)

A 25% surcharge is imposed on any portion of the current subscription which remains unpaid on 31 July. Payments received are credited first against any balance brought forward at the beginning of the financial year

(d) Subscriptions (COUN19M 6.3.2.)

Members over 60 would pay 12.5% of the normal subscriptions and members over 70 would not be required to pay any subscriptions.

(e) Letters of Good Standing (COUN45M minute 11)

Council approved the use of the Institute Seal on a letter of good standing to members signed by the President and the CEO of the Institute and members will pay for the service.

2.COUNCIL DECISIONS (COUN39M minute 3.1)

Council decisions are binding on all members of Council and the Institute.


3.QUORUM AT COMMITTEE MEETINGS (Coun26M 18/05/2000)

It was resolved that 50% or 4 members, whichever is the lesser, would constitute a quorum at any meeting, and in the case of an uneven number on the committee, it should be rounded down. Any workings parties or sub-committees would not be subject to a quorum being present."

4.REPORTS TO COUNCIL (COUN[95-96])

(a)If a Council member is unable to attend a meeting when he has been asked to report upon some matter, he should either send a written report or appoint a spokesman to speak for him at the meeting.

In the absence of the Chairman of a Committee, the Vice-Chairman should report on his behalf.

(b)If a Vice-Chairman is not a member of Council, he should attend for that part of the Council meeting dealing with the Committee’s report.(COUN[96-97] 4th mtg minute 6.5.2)

5.CAPITAL EXPENDITURE BUDGET (COUN[94-95] 6th meeting minute 6.3.2)

In future, a capital budget will be prepared and presented at the same time as the annual budget.

6.CASH DONATIONS (COUN[93-94] 2nd mtg minute 6.3.2)

As a matter of principle, the Institute does not make cash donations to other institutions.

7.CONGRESSES: ATTENDANCE POLICY (COUN[95-96] 8th mtg)

The President for the time being is expected to attend IFAC and ECSAFA Congresses and functions organised by other accountancy bodies in the region. Invitations to attend conferences other than those mentioned above should normally be referred to Council.

8.E.C.S.A.F.A.: Representation. (COUN[94-95] 4th mtg minute 6.4.3)

The Institute will be represented on the E.C.S.A.F.A. Council by a representative appointed for a four year period. The current President will act as alternate. The replacement for the representative will be appointed one year before the expiry of his term of office.


9.COUNCIL AND OFFICE-BEARERS (COUN[96-97] 1st mtg minute 6.2.3)

(a)All office-bearers (i.e. President, Vice-Presidents and Chairmen of Committees) should be elected members of Council;

(b)Younger members should be elected to Council after serving effectively on committees;

(c)Council should, in accordance with the by-laws, fill casual vacancies for elected seats by either co-option or special election;

(d)The Minister should, in future, be invited to nominate as his representatives persons who have been elected to Council;

(e)Appointments to Council by Council should be minimised.


10.AUDIT OF CLIENT TRUST ACCOUNTS (COUN8M 6.6.3)

Arising from discussion of the previous item, it was agreed that the issue of a practising certificate would, in future, be conditional on the member undertaking to ensure that it was audited during the period of validity of the certificate. In the event of failure, the Institute would arrange an audit.


11.CLIENT MONIES(COUN[91-92] 6th meeting minute 6.3.1)

All practising members of the Institute holding client monies are required to submit a certificate in the form approved or a letter stating that " no client trust monies were held and consequently no client trust bank account was maintained during the twelve months ended 31 March 199X before the end of June in the same year.

(a)Collection of monthly rentals

If monthly rentals are being collected on behalf of a client and there is any possibility of the service being seen as being provided by a Chartered Accountant, the rentals collected should be treated as client monies.


(b)Centralised Estates Account (COUN[92-93] 3rd meeting minute 5.3.6)

Estates and liquidation monies are not covered by the definition of "client monies" and should not be held in client bank accounts but in separate accounts. However, a centralised estates account in the name of the firm should be treated in the same way as a client account and should be audited.


12.CONTINUING PROFESSIONAL EDUCATION.

(a)Requirement. 120 hours per three years with a minimum of 20 hours per year.
(b)All CPE activities must contribute to the competence of participants either in professional or general business terms; they should contribute directly to business or professional competence.
Activity
% hours claimable
Accredited courses 100
Professional congresses schools 100
In-house courses 50
Preparation of articles 100
Private study. 100
Council and committee meetings 50
Examination Board etc. 50
Technical reading 25


(c) Annual certificate. See under Practising Certificates.
(Summarised from circulars BLS 151, MG 5/86 and MG 3/88)


13.DISCIPLINARY PROCEDURE (COUN55M-minute 7.1)

(a)Investigation Committee

(i)Council shall appoint an Investigation Committee, which shall be tasked with investigating allegations of misconduct made against a member, an affiliate member, or a student accountant.

(ii)The Investigation Committee shall consist of three members. The quorum of the meetings of the Committee shall be two members.

(iii)The Investigation Committee shall remain in office and function until the appointment of its successor; Provided that if at that date the Committee has before it a partly heard case, those members who comprise the Committee shall continue to act as such for the purpose of completing such a case.

(iv)It shall be the right of every member or any person to bring to the attention of the Investigation Committee any complaint indicating that a member, an affiliate member, or a student accountant may have become liable to disciplinary action.

(v)The Investigation Committee may, of its own motion, exercise its powers under these rules notwithstanding the absence of any complaint.

(vi)Save where the Investigation Committee otherwise decides, a complaint shall be in the form of an affidavit, detailing the specific acts or failures complained of.

(vii)The Investigation Committee shall not be obliged to disclose the source of a complaint.

(viii)Upon receipt of a complaint the Investigation Committee may, where it is of the opinion that the complaint does not disclose a prima facie case of improper conduct or where a complainant has neglected or refused to comply with the requirements of these Rules, dismiss the complaint and inform the complainant accordingly.

(ix)Upon receipt of a complaint the Investigation Committee may, where it is of the opinion that a prima facie case has been made for improper conduct on the part of the accused, advise the accused in writing of the particulars of the complaint and call upon him to furnish his written explanation to the complaint within 21 days of such notice, and at the same time warn him that such explanation may be used in evidence against him.

(x)If upon consideration of the complaint and the accused’ s explanation, the Investigation Committee is satisfied that-

A.the accused has given a reasonable explanation with regard to the conduct imputed to him; or

B.the conduct imputed to the accused does not constitute improper conduct; or

C.there is no reasonable prospect of proving that the accused has been guilty of the conduct imputed to him;

it may decide not to proceed further in the matter and shall advise the complainant and the accused accordingly.

(xi)If the Investigation Committee is of the opinion that a prima facie case has been made out against the accused, it shall refer the matter to the Disciplinary Committee and shall send to such Committee a summary of the facts together with a copy of any representations made to the Investigation Committee.

(b)Disciplinary Committee

(i)The Disciplinary Committee shall consist of the President and the two vice presidents. The Disciplinary Committee may co-opt two members of Council to be a tribunal to hear the complaint. The President shall be the Chairman of the Committee.

(ii)The quorum of the Disciplinary Committee shall be three members.

(iii)The Disciplinary Committee shall co-opt the Legal Officer and a Senior Counsel as its advisers. The advisers shall not count as part of the quorum.

(iv)On receipt of a referral from the Investigations Committee, the Disciplinary Committee shall as soon as practicable notify the accused of the nature of the complaint and the time and place fixed for the hearing.

(v)The Disciplinary Committee shall give such accused person a reasonable opportunity of being heard before it and shall, if he so desires, permit him to be represented before it by a legal practitioner or by a member of the Institute.

(vi)If the accused does not attend the hearing, then provided that the Disciplinary Committee is satisfied that the notice of that hearing was served on the accused the Disciplinary Committee may proceed to hear the complaint in the absence of the accused.

(vii)The Disciplinary Committee shall cause to be kept, in a form appropriate to the nature of any particular hearing or inquiry, a record of the proceedings at such hearing or inquiry.

(viii)Upon conclusion of the proceedings the Disciplinary Committee shall deliberate upon the case in camera, and the finding, and where applicable, the sentence, shall be communicated to the accused and complainant by the chairman forthwith.

(ix)Where a member or affiliate member is struck-off the register the Disciplinary Committee shall cause a notice of such cancellation of membership to be published in the Government Gazette.

A.The full details of the cancellation of such membership shall be given to the media, and shall be published in the next issue of the Zimbabwe Chartered Accountant or its successors immediately after publication in the Government Gazette.

B.In all other cases, a summary not incorporating the accused’s name shall be published in the Zimbabwe Chartered Accountant or its successors.


14.REHABILITATION OF MEMBERS (Coun22M - minute 7.2)

The principle was agreed that "it was natural justice to re-instate a person who had demonstrated that he had been rehabilitated and that, in principle, a person who had been struck off the register for disciplinary maters could be re-admitted, who can show that he has been rehabilitated and evidenced restitution as well."


15.DISCIPLINARY CASES: PUBLICITY (COUN [96-97]3rd mtg,minute 6.3.3)

(a)In the event of a member being struck-off, full details of the reasons should be given to the media and published in the next issue of the Zimbabwe Chartered Accountant immediately after the notice cancelling his registration has appeared in the Government Gazette.

(b)In all other cases, a summary not incorporating the members’ name should be published in the Zimbabwe Chartered Accountant and copies of the summary provided to the media.


16.EXAMINATIONS

(a)Conversion [COUN38M - minute 8 Nov.2001]

The conversion examinations specified by Council, in terms of section 27(b)(iii) of the Chartered Accountants By-laws will follow the following guidelines:

(i)Review the standing of the professional body of accountants which prospective member is already a member of. The Review would include other professional bodies that the Institute had reciprocal membership agreements with and the qualification that the prospective member had in respect of other professional bodies.

(ii)Depending on the outcome of the review from 1) above, a prospective member would be required to either write the full qualifying examination or a conversion examination in taxation and the laws of Zimbabwe. Each application would be considered by the Board on a case by case basis.

(iii)The examination in taxation would be the ZCTA exam and the examination in the laws of Zimbabwe would be and appropriate examination determined by the Examinations Board.

(iv)Council would ultimately approve membership in accordance with section 27 of the Chartered Accountants By-laws 1997.


(b)Certificates: Training Contract Cancelled (COUN[90-91] 2nd mtg minute 5.8)

In the event of a candidate having his training contract cancelled after being given permission to write the Institute Examination, and him/her passing the examination, an examination certificate/letter will not be issued.

(c)W.A. Duff Award.

See under Student Prizes.

(d)Honours (COUN[9-96] 9th mtg minute 6.1.2)

Honours will be awarded to candidates achieving more than 70% of the possible marks in both Parts of the FQE taken at the same sitting

(e)Publication of Results (COUN[95-96] 8th mtg minute 2.2)

(i)Press advertisements are to list the candidates who passed in alphabetical order. One list for each Part.

(ii)Press advertisements should also show separately -

A.the winner of the Duff Award,

B.the names of candidates awarded Honours.

(iii)The article in the "Zimbabwe Chartered Accountant" should show -

A.the winner of the Duff Award,

B.the top ten candidates in each Part,

C.the names of candidates awarded Honours (the remaining candidates should be shown in alphabetical order).

D.an analysis of the F.Q.E. results by educational background
(COUN[96-97] 4th mtg minute 6.1.1)

(f) Bad Failure Rule (COUN[94-95] 5th mtg minute 6.2.1)

Candidates who fail badly at two consecutive attempts at either Part I or Part II of the F.Q. Examination will not be permitted to resit.

(g)Examination Results: Staff Partners (COUN[93-94] 3rd mtg minute 1)

Staff partners should be provided with a copy of the pass/fail list showing the failure grades.

(h)Destruction of Examination Scripts (COUN33M minute 3.3)

The Examination rules should state that the papers would be destroyed one week after the publication of the results.

17.INSTITUTE FLAG (COUN[94-95]5th mtg minute 6.3.1)

Practising firms are permitted to purchase the Institute flag and fly it at their premises during business hours.


18.MONITORING OF FINANCIAL STATEMENTS (COUN30M MINUTE 3.4.2)

(a)The monitoring of company and parastatal financial statements is an important process and should be continued;

(b)the objective of monitoring company financial statements is to improve the standard of reporting;

(c)a company and Institute members drawing up company financial statements have a right to see the Committee's comments;

(d)the Committee must, to avoid possibilities of misunderstanding, confine its comments to technical principles;

(e)the Committee's comments should, in the first place, be forwarded to the auditors;

(f)only thereafter, should the comments (modified if necessary in the light of the auditors' response) be forwarded to the company;

(g)if, because of unavoidable delays, the financial statements for the succeeding year have already been published, the Committee should alter its comments in the light of any changes made;

(h)the Committee's comments should be sent to the Chairman of the Audit Committee (if one exists), or the Chief Executive Officer/Managing Director,

(i)if a meaningful reply from an auditor contacted in accordance with (e) above is not received within three months, a charge of $5000 per month should, thereafter, be raised;

(j)delays exceeding one year, and repeated late responses exceeding three months should be referred to the disciplinary committee for action.

(COUN[94-95] 6th mtg minute 6.2.2 & COUN[94-95] 7th mtg minute 6.5.3. Modified by COUN[95-96] 2nd meeting minute 6.4.1)


19.PRACTISING CERTIFICATES (Count20M minute 8) 6/99

The President and Vice-Presidents were appointed as a Committee to Interview and approve new applications for practising certificates.

(a)Invitations to apply for a practising certificate or its renewal will be despatched with the annual statements of account each year.

(b)A fee amounting to 10% of the annual subscription is payable for a practising certificate
(COUN5M)

(b)Employees of public practitioners are not required to hold a practising certificate.
(COUN[91-92] 6th mtg minute 6.5.3)

(d)Practising certificates will only be issued to practising members.

(f)The practising certificate year - 1 July to 30 June.
(COUN[93-94] 5th mtg minute 6.7.1)

(g)It was the consensus of council that whether signing on behalf of a firm or as an individual the rule was that only members with practising certificates could sign audit reports.
(COUN17M -minute 6.2.1)

20.PRACTICE REVIEWS (Coun41M - minute 6)

The Practice Review Committee to report to the President and Vice Presidents on the findings of the reviews where there were issues which called for a second review the following year.

21.PRESIDENT (Media comment) (COUN[93-94] 2nd mtg minute 6.1.1)

The President is authorised to speak and respond on behalf of the Institute to the media.

23.PROFESSIONAL INDEMNITY SELF INSURANCE FUND (COUN[91-92] 2nd mtg minute 5.4.1)

Participation in the Fund is obligatory for all practising firms unless they carry equivalent insurance cover under another policy.

24.STUDENTS

(a)Public Students (COUN32M - minute 9.1)

Council took a policy decision regarding the use of Institute facilities by public students i.e. students who either do not have a training contract registered with an Accredited Training Office (Registered Students) and are not Exam Candidates.

Council believes that registered student accountants and examination candidates should have priority in the use of study facilities over public students and therefore ruled that the latter should not have access to the currently overcrowded seminar room and library.

Public students "off the street" should be allowed to register for courses and would be provided with study material and expected to attend study schools, the priority in the use of Institute facilities must be given to persons studying to become Chartered Accountants.

(b)Student Quotas

The quotas are based on the formula for a practising firm with more than one partner:
the maximum quota equals 20 per auditing partner provided that each partner has at least 3 auditing managers or seniors to assist with the supervision and training of student accountants. If the ratio between audit partners and managers plus seniors is less than 1:3, the quota reduces as follows (with each partner calculated separately) - 1:2 …… 16, 1:1 ….12, 1:0 ….8
Sole practitioners with no managers or seniors have a quota of 6 and the quota increases by 4 per manager or senior to a maximum of 18.

In the TOPP scheme, the quota equals 5 per Training Officers plus 3 per additional employed Chartered Accountants.


(c)Annual Fees (COUN[92-93] 5th mtg minute 6.5.3)

The number of annual fees paid should relate to the length of the training contract i.e. three year clerks should pay three times and five year clerks five times.


(d)Student Prizes (COUN29M)

The Institute to hold a presentation Day in February each year and the District Societies hold prize-giving functions in July for Part I prize-winners and for outstanding students at universities in their areas. RAD Sagit Award be given for the top student in the Financial Management (TOPP) Part II Examination and the Institute Award the Duff Award for the top student in the Auditing specialistion (TIPP). The aggregate of Part I and Part II marks be used to select the students receiving the Duff and RAD Sagit Awards. The prizes and certificates awarded at the Institute Presentation Day be:


Prizes Source
B.Compt subject prizes (16) Sponsors
Top Student in B.Compt ($4000) $4000 (ICAZ Foundation)

ZCTA certificates

Subject prizes in ZCTA (4 x $3000) $12000 (ICAZ Foundation)
Top student in ZCTA: $4000 $ 4000 (ICAZ Foundation)

Tax Certificates

Awarded to those who have done the conversion examination.

Part II QE certificates

Top Ten candidates in Part II QE Honours
Top Auditing Student: $5000 (ICAZ Foundation)
Top Financial Management Student $5000 (ICAZ Foundation)
Duff Award : $10 000 $10 000 (ICAZ Foundation and Duff Trust)
RAD Sagit Award : $10 000 (RAD Sagit)
The total cost to the ICAZ Foundation $35 000.

(e)Prizes For University Accountancy Students.
Details are at EC6M

(f)TOPP Training Offices (COUN30M minute 9.5)

In the event of a Training Officer leaving a TOPP Training Office, and before another CA is employed to replace him or her, a period of six months be recognised as training hours, but after the six month period without a Training Officer, the time would not be recognised.

(g)Application for TOPP Training Office (COUN 32M minute 9.2)

TIPP training offices may also be accredited to provide TOPP training provided they comply with all the requirements set out for the training of TOPP students.

25.TRAINING CONTRACTS

(a) Cancellation for Travel Purposes (COUN[91-92] 2nd mtg minute 5.1.1)

If a clerk's training contract is cancelled in order to permit him to travel to broaden his experience, it may be re-instated, on his return to Zimbabwe, with any principal willing and able to accept him:
Provided that, the Education Committee, when agreeing to the reinstatement of a training contract in these circumstances, shall recognise previous articled service only if it is reasonably recent.

(b)Practical Experience - Foreign Training

A. Foreign training is not recognised automatically. Individual cases should be considered on their merits. (COUN[95-96] 9th mtg minute 6.3.6)

B. The period of the training contract to be served in Zimbabwe of a Student Accountant who has served under a training contract in another country is determined having regard to the length of service under the previous contract. (COUN[94-95] 3rd mtg minute 6.1.2)

(c)Employment before entry into Training (Affirmed COUN[91-92] 4th mtg minute 5.3.4)
If an undergraduate is employed during vacations while obtaining his degree or a prospective clerk works in a practising firm while studying, part-time, for the necessary qualifications to enter training, one half of the hours spent on client time may be counted as practical
Experience.

(d) Transfers

A. The transfer of a training contract from a principal in one firm to a principal in another firm is not normally consistent with the contractual obligations which a student accepts when he enters into a training contract. (Affirmed COUN[91-92] 4th mtg minute 5.3.4)

B. Transfers are approved only in exceptional circumstances and with the mutual agreement of both parties. The reasons for the transfer must be provided in writing.
(COUN[94-95] 4th meeting minute 6.1.1)

(e)Registration (COUN[90-91] 7th meeting minute 5.3.4)

Applicants wishing to enter training on the basis of "A" level passes will not have their contract registered until they have produced proof of success in that examination in the form of a certificate or a result slip.

On registration, a contract will be back-dated for a period of not more than three months to the date of the examination or the date on which employment with the principal commenced, whichever is the later

(f)Suspension

(i)No open ended suspension will be approved.
(ii)The period of suspension must be agreed between the principal and the student accountant.
(iii)The maximum period of suspension shall be five years. On the expiry of that period, the contract will be deemed to have expired unless an extension has been applied for and approved.
(COUN[90-91] 4th mtg minute 8.3.3)

(iv)Suspension of contracts will only be approved for educational purposes.
(COUN[91-92] 2nd mtg minute 5.1.1)

(v)All current suspensions are to be reviewed once a year (in December)
(COUN8M 6.3.1)

26.TRAINING RECORDS

(a)Level of Supervision
Training records should show the level of supervision provided.
(COUN[92-93] 2nd mtg minute 6.5.2)

(b)Practical Experience Requirements (COUN17M - minute 6.7.3)
Percentages changed later.

Class of Work Minimum Percentage of
Required Period of Training. (TIPP)
Financial Accounting 10%
Auditing 30%
Financial Management 10%
Taxation 2,5%
Business information systems 2,5%


(TOPP)

Financial Accounting 20%
Financial Management
25%
Taxation 10%
Management Accounting
10%
Auditing - Internal
10%
Information systems and management 5%

In addition, at least 2,5% of a student's total time must be hands-on computer.

(c);Timeous Submission (COUN[91-92] 6th mtg minute 6.4.1)

Failure to submit training records timeously is a good reason for an application to write the Institute Examination to be refused in terms of section 51 of the Accountants' By-laws. Applications to sit the Examination will be refused if the applicant's training records have
been outstanding for longer than six months.

27.ZIMBABWE CHARTERED ACCOUNTANT (COUN[94-95] 6th mtg minute 6.6.1)

(a)Thompsons Publications Annual Trophy
• For the best contribution to the magazine by a member or student accountant during the year June to June.
• The annual award of $2 000 which accompanies the trophy is financed from the public relations budget.
• Presentation to take place at the annual dinner.
• Judging to be done by an independent panel.

2017 ELECTION PAPERS
Notice form
Memo to all members election
Nomination form

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AGM 2016 Notice Agenda
ICAZ AGM Minutes 7 August 2015
PROXY FORM 2016

2015 AGM PAPERS
AGM 2015 Notice Agenda
ICAZ AGM Minutes 24 July 2014
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