YOUR VIEWS SHARE YOUR VIEWS Email: accountant@icpak.com Address: ICPAK, CPA Centre, Thika Road P. O. Box 59963 - 00200 Nairobi Kenya Fare thee well... TRANSITION ICPAK former Chairman FCPA Githongo passes on. FCPA Joseph Githongo, former ICPAK National Chairman died on Thursday 8th September <strong>2016</strong> at the age of 83. <strong>The</strong> late FCPA Githongo served as chairman of the Institute between 1982-1984 and bequeathed to the Institute a priceless legacy that continues to inspire Institute’s progress. 2 NOVEMBER - DECEMBER <strong>2016</strong>
EDITORIAL Dear Reader, Do we still need employees in the 21st Century? This is the intriguing question we ask in our cover story. <strong>The</strong> writer argues that nobody can succeed in a significant scale working solo. Like the army generals, owners of businesses have to rally their teams to focus on the mission - the very purpose of corporate existence. This unity of purpose is the thread that binds the team members together. Only loyal, committed, innovative, adaptive and highly motivated teams can sustainably survive and thrive in the ruthless battle for customers’ votes and wallets. Since the teams and their leaders are solely responsible for strategy execution, we can authoritatively conclude that a company’s fortunes or misfortunes are by and large dependent on their performance. Just like a soccer team cannot appease its fans and owners when it loses by blaming bad weather like rain, strong winds, a scorching sun, a referee or unkempt play grounds, employees are wholly responsible for corporate results. It is inexcusable to blame outside elements like Ebola or Zika outbreaks, terrorism, the climate or turbulence in the financial markets. Such excuses and blame games do not cut the ice; not when the majority of businesses have innovation, creativity and flexibility as some of their core values. A careful study of great men and women reveals that greatness was not just a product of academic studies, formal education, social status or superior breeding. <strong>The</strong> greatness of each person was related to the discovery, development and refinement of the unique talent or work in which each individual was involved within a certain period of time. Neurologist Daniel Levitin said that excellence at performing a complex task or any other task requires a critical minimum level of practice. In fact, he said that from an emerging picture of studies, ten thousand hours of practice is required to achieve the level of mastery associated with being a world-class expert. Find out more about this fascinating subject in the work place. Did you know that the probability of developing cancer increases a great deal with advancing age? Actually, more than 50 percent of new cases of cancer and 67 percent of all cancer deaths have been known to occur in people over 65 years. <strong>The</strong> huge, cumulative lifetime risk of cancer and the impact of cancer in the rapidly growing older population suggest an impending major health care setback. In the year 2000, it was reported that in the 20 years preceding that year, the incidences of lung, breast and prostate cancer; malignant melanoma; and non- Hodgkin’s Lymphoma had increased. Until age 50, the incidence of cancer is higher in women, but after age 60, it increases a lot among men. Whether the increased incidence of cancer in the elderly result primarily from the biological changes of aging or from prolonged exposure to carcinogens, is not known. Observations support both assumptions - this topic is in the health segment. Revenue assurance can be defined as a means to identify and remedy. It can also be seen as a means to prevent problems that result in financial under performance without seeking to generate additional sales. <strong>The</strong> value added includes the recovery of leaked revenues or costs through issuing additional bills, chasing uncollected payments, renegotiating with suppliers a refund of costs among other actions. Research shows that, globally, more than 50% of identified leakages are not recovered. It is important to have a cross-function mandate to recover revenue wherever possible. This is what we analyze in financial reporting and assurance. An organization may have the ‘tone at the top’ who make strategic decisions, but what happens when these strategists do not consider managing the risks openly glaring at them? Similarly, the organization can have competent and qualified employees but what happens when these employees have no regard for risk management or are totally oblivious to the glaring harmful risks facing the organization? For all intents and purposes, enterprise risk management is the heart of an organization; read more about this in the management section. Meanwhile, a new law, Miscellaneous Fees and Levies Act, <strong>2016</strong>, has been brought into force with effect from 21st September <strong>2016</strong>. <strong>The</strong> purpose of the Act is to provide for the imposition of duties, fees and levies on imported or exported goods and for connected purposes. KRA is responsible for the control and collection of, and accounting for, duties, fees and levies paid under this Act. We discuss this issue in Business Practice and Development. Enjoy these well researched articles, plus our regular features in this lively journal. Mbugua Njoroge Editor NOVEMBER - DECEMBER <strong>2016</strong> 3
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