Network News Summer 2013

UCC CIMA IRELAND 2013 GBC WINNERS!

PLUS...

GBC 2013 CIMA Annual Dinner Islamic Finance

Contents 1

Message from CIMA Ireland Chair – Louise Connaughton, FCMA, CGMA

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New members /CIMA Ireland annual dinner

3

CIMA Ireland elects new chair/CIMA conference in association with Deloitte

4

Leaders in Business – Mel Chittock, Executive Director Operations and Finance, Invest NI

6

CIMA Ireland BSTAI schools quiz

7

Islamic finance

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2013 CIMA Global Business Challenge

10

One Year MSc in Strategic Management Accounting/Part-time Certificate level tuition

11

CIMA Ireland Grapevine/CIMA elects new president

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Case study – Ronan Lynch, ACMA, CGMA

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Tuition for November 2013 exam sitting

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Steering clear of costly crashes

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CIMA Ireland announces new Development and Quality Training partners

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Top student award/People on the move

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MyCIMA – update your details/Technical resources with Omnipro

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Pre-pack receiverships: the new game in town

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CIMA Advanced Diploma in Islamic Finance

CIMA IRELAND 5th Floor, Block E, Iveagh Court, Harcourt Road, Dublin 2, Ireland T. RoI: 01 6430400, NI: 02890268490 | F. +353 (0)1 6430401 | E. cima.ireland@cimaglobal.com

Welcome A message from CIMA Ireland Chair Louise Connaughton FCMA, CGMA

This edition of Network News is the first since I was elected chair of CIMA Ireland and I am most honoured to be taking up this role.

From the outset, I would like to express my appreciation to the previous chairs whose hard work and dedication have resulted in a strong, robust, professional organisation that now boasts some 8,000 members and students across Ireland.

My key focus will be to continue to grow the membership base, by providing relevant and enhanced services and training to our members and students, by proactively engaging with and underpinning the role of the branch network and by building a strong pipeline of future institute members and business leaders.

In particular, I want to ensure that members are appropriately equipped to achieve their own ambitions whether this is through timely and accessible CPD events, business intelligence and analysis, shared services, thought leadership, education and robust industry engagement.

Over the last few years I have worked closely with both the institute’s board and the executive to develop and execute the CIMA Ireland 2015 strategy. This saw a reconfiguration of our strategic focus following the successful integration of both the Northern Ireland and Republic of Ireland organisations to form an all island body. This has worked well and CIMA Ireland is the third largest body of accountants in Ireland.

CIMA as a professional qualification has come into the fore during these challenging times. Our members operate and input at the highest levels, with many names now familiar to you on a daily basis, through high profile roles across both the public and private sectors.

We can report a sustained and consistent growth in new student registrations, against a backdrop of a very challenging market over recent years. This growth underscores the unique benefit of the CIMA professional qualification, in focusing on helping business (and people) to drive out of the difficulties of economic hardship - there has never been a better time to be a management accountant.

We continue to identify opportunities to grow the membership by maximising CIMA’s presence and engagement with industry, education providers and other professional bodies, underpinned by increased and accessible study routes. The CIMA employer programme is proving extremely successful working with business schools and employers to provide the latter with access to a pipeline of talented resources.

The institute also proactively engages with other professional bodies including Engineers Ireland, the Law Society of Ireland, the Irish Association of Corporate Treasurers (IACT), the MBA Association of Ireland, the Irish Taxation Institute and the Institute of Bankers which are all important to the development of new student pipelines.

Details of further engagement with professional bodies will be announced in the coming months.

Education is a primary focus and 2011 saw the introduction of the first year of the CIMA Diploma in Islamic Finance (CDIF). The CDIF has been recognised as integral to supporting government policy in establishing the IFSC as the Western hub for Islamic wholesale finance. Following its success and demand for suitably qualified professionals, CIMA has now introduced the Advanced Diploma in Islamic Finance.

The full time MSc in Strategic Management Accounting (SMA) which commences in September at the UCD Michael Smurfit Graduate Business School follows on from the success of the two year, part time, SMA. Regarded by employers as highly relevant, the MSc is valued for its delivery of the CIMA skills set in an enhanced offering to contribute and deliver for their businesses.

With 203,000 members and students in 173 countries, CIMA is the world’s largest professional body of Management Accountants and continues to grow across all sectors of the global business landscape.

This internationally recognised professional qualification is further underpinned by the joint venture between our US counterparts the AICPA. It establishes management accounting, represented by the CGMA designation, as the most valued profession in business worldwide with over 125,000 CGMAs. We will be announcing some important opportunities around thought leadership that will specifically engage with the indigenous and global CGMA community in Ireland in the Autumn.

CIMA is a listening organisation with the branch network at the core of the institute’s vibrancy. We proactively work with the branches to ensure that initiatives are genuinely reflective of members needs. We will be running a network forum later this year to allow all branch committee members to participate in networking and planning activities for 2014. It is the input from the branches that shapes and informs our focus and strategy in line with our goals and ambitions both for the Institute for individual members. Do make your voice heard both by supporting your branch and being an active member of same. It really is a case of giving and getting back.

I hope to have the opportunity to meet with all of you over the next 12 months. In the meantime, I would like to conclude by thanking you for your continued support for CIMA which ultimately is your organisation for you and shaped by you.

Louise Connaughton FCMA, CGMA CIMA Ireland Chair

NETWORK NEWS | Summer 2013

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Newly admitted members CIMA Ireland held a graduation event for newly admitted members and for those who successfully completed the CIMA Professional Qualification and the CIMA Diploma and Advanced Diploma in Islamic Finance. Newly admitted member Roxana Edries (ACMA) from Cork is pictured (right) with outgoing CIMA Ireland Chair, Alan Flanagan, FCMA, CGMA.

New member s

s New member

CIMA Ireland annual dinner John Moran, Secretary General, Dept of Finance was the keynote speaker at the CIMA Ireland annual dinner. He is pictured in advance of the dinner with Alan Flanagan, outgoing CIMA Ireland Chair and Denis McCarthy, CIMA Ireland Director.

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Newly admitted member Vivian Peralta (ACMA) pictured prior to the graduation ceremony for newly qualified members with Eoghan Murphy TD and outgoing CIMA Ireland Chair, Alan Flanagan, FCMA, CGMA.

CIMA Ireland elects Louise Connaughton as new chair Louise Connaughton FCMA, CGMA has been elected chair of CIMA Ireland, the all island body representing 8,000 CIMA members and students.

Ms Connaughton was elected chair at the institute’s Annual Members Meeting and succeeds outgoing chair, Alan Flanagan. Louise Connaughton is the European operations manager for Xerox Europe Limited Global Delivery Centres with operations in Dublin and Lisbon. Mr. Frank Nolan has been elected deputy chair. Frank Nolan is Finance Manager Operations European Beer Supply with Diageo and is a former Secretary, deputy Chair and Chair for the CIMA Northern Area.

n Flanagan with Frank Nolan, Ala hton Louise Connaug

Pictured Louise Connaughton newly elected chair with Frank Nolan, newly elected deputy chair, and Alan Flanagan, outgoing chair CIMA Ireland.

CIMA conference in association with Deloitte Pictured at the CIMA conference ‘Integrating risk into performance – Reporting to the board of directors’ were Sheamus Causer, Director - Enterprise Risk Services, Deloitte; Cameron Marr, Chief Risk Officer and Executive Director of KBC Bank Ireland; Prof Regine Slagmulder, Vlerick Leuven Gent Business School, Belgium; Alan Flanagan, outgoing Chair, CIMA Ireland; Brian Duffy, CIMA Ireland Board Member; Ian Drennan, Director of Corporate Enforcement, ODCE; and Denis McCarthy, CIMA Ireland Director.

NETWORK NEWS | Summer 2013

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Leaders in Business Mel Chittock, Executive Director Operations and Finance, Invest NI A native of Durham in England, Mel Chittock joined Northern Ireland’s economic development agency, the Industrial Development Board (IDB) as it was then known, in 1996. Arriving in Belfast with his wife and young child two years before the signing of the Good Friday Agreement, and after ten years with the telecoms giant Plessey (later part of GEC plc), seems a curious enough move. But for an accountant who had been at the cut and thrust of international expansion of the £650M turnover firm, one gets the sense that it was a carefully considered decision, calculated with the precision skills of his profession.

If the appeal of returning to his wife’s Northern Irish roots were a factor in the move, they still researched the role and the location extensively. ‘My next move was going to be overseas, perhaps to a developing economy or Central London and neither of these appealed for family reasons. Whereas living, working and doing business in Northern Ireland in spite of the political upheavals at the time came with many fringe benefits in terms of quality of life, good schools, highly skilled workforce, excellent infrastructure, the very positives we promote here to inward investors and it has been equally true for me.’

Mel joined the Liverpool-based Plessey Group, as a finance graduate trainee immediately after leaving Liverpool John Moores University with an Honours Degree in Accounting and Finance. He knew instinctively that the traditional journey into professional practice wasn’t going to be the route he would take. ‘I had no desire to be an auditor. I wanted to work in a business environment, preferably manufacturing. So I opted to become CIMA qualified. I see it as the most relevant finance qualification for business and it gave me a great foundation on which to develop transferable business skills.’

As fate would have it, he was then seconded into public practice for six months, an experience that only served to reinforce his decision that he wanted to work in industry. Returning to Plessey at a time

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NETWORK NEWS | Summer 2013

of rapid development in the world of telecoms, he was on the cusp of the technological and digital revolution that saw the merging of telecoms, computing and video. ‘It was a hugely exciting time to be working in the telecoms sector,’ he recalls.

A year after qualifying, he had the opportunity to become finance manager for their Hong Kong business, although this ended up as a short term assignment as the result of another re-organisation.

With significant business restructuring every 18 months, Mel was managing the challenges of management accounting for a business that was growing rapidly through international joint ventures. A development role heading up the tender and risk assessment team saw him managing all new business tender opportunities whilst at the same time developing strategies to enter new markets. New markets emerged as the Former Soviet Union broke up and China sought to become more attractive to foreign investors. This created opportunities to build joint ventures in major cities in Russia and the newly independent ‘stans’. Often this would mean spending weeks at a time overseas in countries such as Russia, China and Uzbekistan.

He quickly became the company specialist in overseas tax and accounting law which resulted in working more and more with the company’s legal team to negotiate joint ventures in emerging markets such as China and the former Soviet Union.

‘The highlights included developing the very first Russian sovereign debt guarantee for a major joint venture in Moscow and setting up the first private telecoms operator in Uzbekistan. In Tashkent I had to spend several days negotiating the definition of ‘profit’ as the local accountants had no concept of this under Soviet accounting rules. The early days were marked very much by rapidly evolving market conditions and uncertainty with never knowing what the outcome would be, although our strategy of maintaining long term investment relationships clearly demonstrated our commitment over a sustained period and this was appreciated.’

Clocking up the air miles, and away from home ‘three weeks out of every four’ he still managed to find the time to obtain a Masters Degree in Business Administration which helped broaden his business perspective before he took the final step across the Irish Sea to join IDB.

‘I opted to become CIMA qualified.

I see it as the most relevant finance qualification for business and it gave me a great foundation on which to develop transferable business skills.’

to show with the agency seeing a 11% year-on-year increase in customer satisfaction.

Mel acknowledges that making the move from a profit-generating PLC to a publicly funded arms-length body of the Department of Enterprise, Trade and Investment, was a difficult transition at the time. Yet in a sense Mel’s experience has come full circle in an organisation that is using private sector measures such as Balanced Scorecard to keep track of its performance. Whilst PLC’s are coming under increased public not just shareholder scrutiny he makes the point that scrutiny of public finances adds to the responsibility and the expenditure constraints of his role. ‘The challenge is to strike the right balance between good corporate governance and accountability with responsiveness, flexibility and risk taking in our investment decisions.’

Whilst there are no ‘profit’ outcomes of those decisions, Invest NI’s most recent set of results show a very strong performance against an unfavourable economic backdrop.

• 7,400 new jobs promoted during 2012/13 up 14% on last year • 2,200 FDI jobs – nearly 100% up on previous year • 5,000 offers of support • R&D investment £105m – up 68% • Skills investment £38m – over 110% up on last year

Mel’s first position at IDB was corporate finance executive managing the commercial appraisal of development plans from both locally and internationally owned companies. As the economic climate changed so too did IDB, incorporating the small firms agency, Ledu, to become Invest Northern Ireland in 2002. During that time, Mel was working with companies in financial difficulty assessing recovery and restructuring plans, before becoming finance director of Invest NI in 2004.

Most recently, as executive director finance and operations Mel, along with his colleagues on the executive leadership team, he has been implementing significant changes to how Invest NI operates.

These changes are the outworking of an independent review of economic policy which included the role of Invest NI. ‘We took on board the recommendations in the Barnett Report and feedback from our stakeholders to embark upon a major strategic overhaul of how we deliver our services. What we do is very simple. We exist to grow the local economy by helping new businesses get off the ground, supporting existing ones to grow by competing internationally or attracting new investment to Northern Ireland.

As a publicly funded body how we do that can be quite complex so I have been leading the drive for efficiencies and performance by bringing in measures from the private sector such as lean manufacturing. We are breaking down every step of our financial intervention processes to see how we can simplify things and become more accessible for businesses. For example, 76 financial assistance programmes have been rationalised to 21 tailored solutions. We are striving towards service excellence across all our customer-facing touch points.’ The results are already starting

In the current economic climate and amidst such uncertainty these are impressive results.

Mel acknowledges that this performance is the result of teamwork across all parts of the organisation and that everyone has a part to play in the delivery of these results. No one part of the organisation can act in isolation and he has worked hard to ensure the finance team is at the very heart of the organisation. Within this, the role of the management accountant is that of a strategic enabler that can not only help formulate and challenge strategy but also bring tremendous value to business performance.

‘Be inquisitive, have a thirst for knowledge and don’t be frightened to be the one who keeps asking the difficult questions.’

For students and those just qualified, Mel advises that the choice of the very first finance job is critically important as it opens up opportunities for progression and sets the bar on an individual’s CV. Getting as much experience as possible both within the finance department and outside of it is key. ‘Be inquisitive, have a thirst for knowledge and don’t be frightened to be the one who keeps asking the difficult questions,’ he concludes.

NETWORK NEWS | Summer 2013

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u Q s l o o h c S d CIMA Irelan

Junior Cert business students from Presentation College in Athenry, Galway, took the national title at the annual CIMA/BSTAI Schools Junior Cert business quiz. The competition saw a total of 852 junior cert students from 122 schools compete across the country.

Pictured celebrating with Darren O’Neill (centre), Irish Boxing team captain at the London Olympics, are students (from l-r) Ailish McDonagh, Mary Kelly, Evan Quirke and Sarah Mitchell.

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A/BSTA ents win CIM Athenry stud business quiz Junior Cert

Students from St. Mary’s Mallow were the runners up in this year’s CIMA/BSTAI Schools Junior Cert business quiz which took place at LIT Tipperary in Thurles. Pictured celebrating their success with Darren O’Neill, Captain Irish boxing team for the London Olympics were teachers Nora Casey and Valerie O’Regan with students Aisling Smith, Caoimhe Sheehan, Emilie Falvey and Julie Crowley.

Mallow studen ts’ runners up in CIMA/ BSTAI Junior Cert busine ss quiz

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ers up in students runn St. Columba’s business quiz t er C I Junior CIMA/BSTA

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Junior Cert students from St. Columbas, Stranorlar were also runners up in the CIMA/BSTAI Junior Cert business quiz. Pictured with Darren O’Neill were teachers Siobhan Diver and Sarah Harkin with students Lauren Mailey, Patrick Kelly, Mark Bonner and Shane Hegarty.

CIMA Diploma in Islamic Finance Due to Ireland’s increasing importance as a Western hub for Islamic finance, the Chartered Institute of Management Accountants (CIMA), is pleased to announce the commencement of their next CIMA Diploma in Islamic Finance (CDIF) blended learning tuition programme commencing on Thursday 22 August 2013.

With input from leading Shari’ah academics, CIMA’s blended tuition package includes: Initial kick-start session Online and hard copy study materials Four half day morning revision seminars in Dublin with input by leading Shari’ah academics The CDIF qualification will be awarded upon successful completion of four individual certificates.

Fee: €990 – includes cost of blended tuition package and computer based assessments.

CIMA Advanced Diploma in Islamic Finance (CADIF) The CIMA Advanced Diploma in Islamic Finance (CADIF) is a single learning module and will commence on Saturday 24th August 2013.

Successful completion of the CIMA Diploma in Islamic Finance is required before enrolling on this programme.

CIMA’s blended tuition package for this programme will include: Initial kick-start session Comprehensive study guide Four half day revision seminars in Dublin with input by leading Shari’ah academics One full day face to face revision seminar with Dr Mohd Daud Bakar, CEO Amanie Advisors The CADIF qualification will be awarded upon successful completion of the exam assessment.

Fee: €1000 – includes cost of blended tuition package and computer based assessment.

To book your place on either of the above blended learning programmes T. 01 6430400 or E. cima.ireland@cimaglobal.com **Payment plan available for both programmes **

For more information:

www.cimaglobal.com/cdif

NETWORK NEWS | Summer 2013

UCC wins Irish final of CIMA Global Business Challenge

CONGRATU L

ATIONS!

The Ireland final of the CIMA Global Business Challenge took place at IT Tallaght on 8 June where students from 10 of the country’s leading business schools competed, with UCC emerging as this year’s winners whilst Letterkenny IT and DCU were runners up.

This is the third time that a team from UCC has taken the title in the Irish final. The team will now represent Ireland at the global final in South Africa and will compete against 22 other countries for the title. The 2013 CIMA GBC, which is being held in partnership with Barclays, is an international business management competition for full time business studies undergraduates and is designed to bring out the best potential young business leaders.

Winners – UCC UCC students Conor Crowley, Richard Quirke, David Lane and Hazel Grimes are pictured with Alan Flanagan, outgoing Chair, CIMA Ireland; Peter Plant, Challenge Chair, First Intuition; Andrew Hastings, Challenge Judge, Chief Executive Officer Ireland, Barclays Bank Ireland PLC and Georgina Skehan, CIMA.

Athlone IT Athlone IT students Karen Spollen; Eoin Costello; Patricia Jurkowska and Chereen Hogan are pictured at the final with Mary Dullaghan, CIMA Cork IT Cork IT students Mark Ryan; Denis Good and Aoife O’Donovan are pictured at the final with Mary Dullaghan, CIMA DCU Runners up DCU students Deirdre Ni Linglis Ni Eideain; Karl Davitt; Robert McMahon and Koren Good are pictured at the final with Colm Murphy, CIMA Dun Laoghaire IADT Dun Laoghaire IADT students Mitzi Dalton; Leigh Heritage; Emmet Kehoe, Stella Pete and Byron Smith are pictured at the final with Geraldine Furlong, CIMA Dundalk IT Dundalk IT students Paddy Coleman; Jessica Moneley; Shane Carolan and David Connolly are pictured at the final with Robert Cosgrave, CIMA IT Tallaght IT Tallaght students Fergal Meehan; Eunice Marowa; Andrew Gilbert and Sarah Greene are pictured at the final with Colm Murphy, CIMA

ers - UCC Irish GBC Winn

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Letterkenny IT Runners up Letterkenny IT students Melissa Salter; Edward Toye; Sean Sweeney and Aoife Mannion are pictured at the final with Georgina Skehan, CIMA Queen’s University Queen’s University Belfast students Mark Earney; Ciara Maguire; Peter Marshall and Danielle McDowell with Richard Stack, CIMA UCD UCD Quinn School of Business students Alexander Farrell; Catherine Basquet; Deane Barton and Debbie Fair are pictured at the final with Geraldine Furlong, CIMA

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UCD DCU

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Athlone IT

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MSc in Strategic Management Accounting to commence in September Applications are now being accepted for the one year full time MSc in Strategic Management Accounting (SMA) commencing this September at the UCD Michael Smurfit Graduate Business School. The programme is the result of collaboration between the UCD Michael Smurfit Graduate Business School and CIMA Ireland. The full time MSc programme is built on the successful two year part time programme and provides graduates with a distinct competitive edge that will stand to them throughout their business career as well as opening up career opportunities. Graduates of the programme will be exempt from all CIMA exams except for TOPCIMA (T4), the final CIMA exam.

This is an exciting programme designed to produce high calibre graduates for leadership in business, advisory and accountancy. The programme is intended for high ability business graduates who want to achieve long-term career success, based on a strong foundation in accountancy and specialising in management accounting. It will equip business graduates with a systematic and rigorous knowledge of management accounting within the context of strategic management and will provide accelerated access to the CIMA qualification.

The programme prepares students for leadership in business and

accountancy by equipping them with the necessary technical, analytical and personal skills. It is designed to develop skills that employers require including data analytics, business modelling, professional report writing and the ability to work as part of a team. Since its introduction the MSc has attracted participants from diverse employment backgrounds including: Allianz (Darta Life); Allied Irish Banks; Certus ; Connemara Seafoods ; Deloitte; Delph Ltd; FFA, Chartered Accountants; Health Service Executive; Intel; Microsoft; Oracle; PwC; Pfizer; Procter & Gamble; Teleflex Medical Europe; and WDA, Chartered Accountants.

Those considering applying for the MSc, who may wish to discuss any aspect of the programme can contact UCD Smurfit School at: E. smurfit.admissions@ucd.ie | T. +353 (0)1 716 8885 www.smurfitschool.ie/sma.

Independent Colleges now offering part-time Certificate level tuition Accountancy School at Independent Colleges now offers part-time face to face tuition for all CIMA Certificate in Business Accounting (CBA) modules.

Courses are a combination of:

The CBA offers a solid grounding in the basis of management, accounting, financial accounting and business and is a good introduction for those new to business or accounting studies. It also provides an entry route to the CIMA Professional Qualification.

Each course runs for a duration of three months and includes a combination of evening and weekend classes.

Courses commence every three months, with the next course for each module commencing in September and running until December.

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•

self study at home

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tutor guided revision sessions

•

practice question session

For further details please contact cima@independentcolleges.ie or phone +353 (0)1 635 5822

CIMA Ireland Grapevine 2013 A look back at the 2013 annual CIMA Grapevine event This years’ annual event went to the dogs literally, as guests were invited to join the CIMA team for an evening at the greyhound race track in Harold’s Cross on 22 February. A very enjoyable evening was had by all who attended. Some bets were won and some were lost, overall a fun filled evening with many speculating where the 2014 Grapevine event will be held.

CIMA Grapevine

Back row: Georgina Skeehan (SIG), Moya Breen (LIT Thurles), David Muldowney (SIG), Roisin Copeland (QUB), Conor Heagney (IADT), Carol Hunt (UCD), Peter Weadack (IADT), Nathy Walsh (IPA), Helen O’Brien (DIT), Maurice Smyth (UU) Front row: Desmond Gibney (NCI), Bridie Killoran (GMIT), Karen Greene (CIMA), Caroline McNulty (Sligo IT), Mary McNulty (UCC), Sarah Brown (UCD), Martin Nolan (IT Tallaght), Yi Bao (UCD), Marian Duggan (LIT), Ruth Vance (CIT), Fiona Arnold (CIMA)

CIMA elects new president Malcolm Furber FCMA, CGMA, has been elected President of CIMA at its Annual General Meeting on Saturday 15 June.

Mr Furber has been a member of CIMA’s council for 15 years and was involved in CIMA’s last four qualification reviews and the review of its ethical code. He was previously chairman of CIMA’s Lifelong Learning Policy Committee and is also a regular speaker for CIMA globally on integrated business planning and performance management.

In addition to Mr Furber’s appointment, Keith Luck FCMA, CGMA, has been elected Deputy President, and Myriam Madden FCMA, CGMA, has been appointed Vice President. Mr Luck has extensive experience in both the public and private sector and has been a CIMA speaker and an ambassador for the organisation throughout his career.

Malcolm Furber FCM A, CGMA

Ms Madden was born and educated in Ireland and is a graduate of the University College Cork. From 2002 until 2004 she worked at HBOS as the project manager for the development of a corporate Balanced Scorecard, which became the standard reporting tool across a number of finance departments in the UK. She is currently director of finance at Historic Scotland.

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Case study Ronan Lynch, ACMA, CGMA

BSc in Neuroscience, UCC MSc in Management Accounting and Information Systems, UCC Management Company Supervisor, BNY Mellon

Why CIMA?

How did you find studying for the CIMA exams?

CIMA has allowed me to move from a career as a neuroscientist to working for one of the largest investment companies in the world in a fulfilling and challenging role. I chose CIMA over the other accounting qualifications as it looks to the future, rather than focusing on what has already happened. It teaches you not to take figures at face value but to question what is driving them, which is essential in the current economic climate. I found that the CIMA syllabus was relevant and used real world examples which students can relate to. CIMA doesn’t just focus on numbers, it teaches students about how best to manage projects and deal with conflicts that may arise while managing a project. The CIMA qualification allows me to stand out from the crowd and progress further in my career.

From the start CIMA teaches you to look at business on operational, managerial and strategic levels. It has shown me to always look at the big picture when making decisions. Studying while working fulltime is tough and the professional accounting exams are tougher than any exams you will complete in college. But I always looked at it from the point of view - once I had passed the exams, nobody could take away the fact that I was a qualified accountant.

What does your role with BNY Mellon involve?

I am a management company supervisor and my role covers both the production and review of monthly management accounts. It also involves analysing monthly variances within the company accounts and determining what is causing them in order to give a high level overview to our clients. In order to ensure that each management company remains profitable I carry out weekly cost plus analysis to ensure that each company maintains their agreed profit margin.

The role also involves running the audit of each company within my portfolio; this involves organising the audit timetables, production and review of financial statements and ensuring that deadlines are achieved.

Being a CIMA member has helped me progress much faster in my career. I have the technical skills and knowledge to carry out my job to a high standard which in turn gives me the confidence to speak to clients and senior management on both technical and strategic topics. The increased autonomy means that I take ownership of the information I produce and is especially relevant to my current role.

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‘CIMA doesn’t just focus on numbers, it teaches students about how best to manage projects and deal with conflicts that may arise while managing a project. ’ How does BNY Mellon provide support for you to fulfil the CIMA professional development requirements?

BNY Mellon has developed an extensive range of both online and classroom based training courses using its dedicated training department which monitors the needs of all of its employees. The training department provides courses in the technical aspects of asset management along with courses in helping you to develop soft skills to build better client relationships. BNY Mellon also encourages staff to attend relevant briefings and seminars to further develop the knowledge base within the company.

A M I C e h T o t e m s w allo n o i t a c fi quali owd r c e h t from t u o d n sta r in e h t r u f ess r g o r p d an er. e r a c y m NETWORK NEWS | Summer 2013

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Tuition for November 2013 exam sitting Master’s gateway revision seminars, Dublin Module

Date

Lecturer

Price

F2 finance management

Wednesday 25 September 9.00am-5.00pm and Monday 14 October

Dave Capewell

EUR190 per subject or EUR500 for all three

E2 enterprise management

Thursday 26 September and Tuesday 15 October

9.00am-5.00pm

Dave Capewell

EUR190 per subject or EUR500 for all three

9.00am-5.00pm

Dave Capewell

EUR190 per subject or EUR500 for all three

P2 performance management Friday 27 September and Wednesday 16 October

Time

Venue CIMA Ireland, 5th floor, Block E, Iveagh Court, Harcourt Road, Dublin 2

Part-time face to face tuition Part time courses commence in August/September and are offered in Dublin and Belfast.

Dublin

Belfast

• • • •

• • •

Dublin Business School Independent Colleges First Intuition Griffith College

University of Ulster Belfast Metropolitan College Richard Clarke Academy

Distance Learning Distance learning is also available through books and online, and is offered by a number of CIMA approved providers.

Full tuition details can be found at www.cimaglobal.com/irelandtuition

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Blended Learning

Blended learning courses will commence August 2013, each tailored specifically to the CIMA syllabus. They will be delivered by lecturers experienced in the CIMA professional qualification and exam requirements.

The fee for the blended tuition package is â‚Ź495 per CIMA subject, excluding the exam fee. For those who wish to attend all three strategic level courses only, the cost is â‚Ź1,100 for the three.

Athlone Institute of Technology E3 enterprise strategy P3 performance strategy F3 financial strategy

Commencement date for all subjects: 31 August

Waterford Institute of Technology E1 enterprise operations P1 performance operations E2 enterprise management P2 performance management

Commencement date for all subjects: 31 August

Cork Institute of Technology

Letterkenny Institute of Technology

E1 enterprise operations P1 performance operations F1 financial operations E2 enterprise management P2 performance management F2 financial management E3 enterprise strategy P3 performance strategy F3 financial strategy

E1 enterprise operations P1 performance operations F1 financial operations P2 performance management F2 financial management

Commencement date for all subjects: 21 September

Commencement date for all subjects: 6 September

Limerick Institute of Technology E1 enterprise operations P1 performance operations F1 financial operations

Commencement date for all subjects: 3 September

Register For full details and booking please contact CIMA Ireland office at cima.ireland@cimaglobal.com or phone +353 (0)1 6430400.

www.cimaglobal.com/irelandtuition

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Steering clear of costly crashes Ron McNamara, Managing Director of DriverFocus We can all be proud of the fact that Ireland has become one of the safest countries in the world in which to drive. Between 2006 and 2012, the number of fatalities on Irish roads has fallen by more than 50%. This was no accident - there are many reasons for this improved performance.

Case study: ABB Ireland*

As a country, our attitude towards road safety and our individual behaviour behind the wheel has improved. Credit must also go to the focus on road safety brought about by the establishment of the Road Safety Authority (RSA) in September 2006 and its proactive management of road risk.

Recognising that organisational as well as individual driver factors contribute to occupational road risk, ABB created a comprehensive safe driving for work programme.

The RSA works successfully in partnership with other authorities, a wide range of interest groups and communities to drive home awareness of risks associated with driving and our individual role in improving road safety. This challenge to all of us is based on the premise that collisions are both predictable and preventable.

50 employees who drive company-owned vehicles and 40 ‘grey-fleet’ drivers participated in a series of activities such as: • Online driver risk assessment •

Online hazard perception skills evaluation

•

Targeted online training (for all drivers plus invited friends and family)

This was complemented by management action including: • Distributing a comprehensive driver’s handbook

Driving for work

•

Reviewing driving for work policy and procedures

The new National Road Safety Strategy (2013-2020) launched by the RSA in March 2013 calls for ‘special consideration to be given to work-related vehicle safety issues’ to help avoid the estimated 150 fatal or serious injuries attributed to driving for work each year.

Research conducted by the RSA and Health and Safety Authority (HSA) in August 2011, among 500 employers shows that - despite clearly having joint responsibility with drivers for safe driving for work under health and safety law - many employers do not have adequate management systems relating to driving:

•

Briefing workshop for managers on ‘Road risk’

•

Issuing driver safety kits

•

Featuring driver safety in company magazine.

•

47% had no policies or procedures for managing driving for work

•

62% did not provide information to those who driving for work

•

47% had no incident reporting system

•

17% had details of average kilometers per employee

•

84% planned no training in next 12 months

Along with duty-of-care compliance, being proactive in measuring and managing driving activities has a strong financial business case and corporate responsibility benefits.

Driver risk management In much the same way as driver risk management has worked at national level, it can and does work at enterprise level too. Employers have a captive audience of drivers and can positively influence the driving environment to reduce liability, loss and harm exposure.

Understanding exactly where driving-related risk lies in your organisation should begin with an objective risk assessment of driver, vehicle, journey and management factors. Capturing relevant data will help identify who is most at risk, why they are and what risks are common across the organisation. ‘Reasonable and practicable’ interventions encompassing ‘instruction, information, training and supervision’ go a long way towards the ultimate goal of reducing the frequency and severity of collisions.

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ABB is a global leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. In Ireland, ABB operates in five locations around the country and employs over 150 people.

NETWORK NEWS | Summer 2013

Since its inception is 2009, the programme has seen the annual cost and frequency of collisions reduce by over 50%. Now, ABB has a rolling, three year ‘Roadmap’ to help further improve its environment for safe driving and fleet safety performance. [* Winner of the 2013 Driver Safety Award – Brake, the Road Safety Charity, Fleet Safety Forum]

Further Information www.vehiclesatwork.ie, www.hsa.ie, www.rsa.ie, www.driverfocus.ie

Does your Driving for Work environment allow staff to drive safely?

To find out, take the free 10 question fleet safety survey at www.driverfocus.ie Did you know?

• 750,000 drive for work on a regular basis in Ireland CSO/

DriverFocus • 1 in 3* of all road fatalities involve someone driving for work

RSA/HSA •

150* people are either killed or seriously injured in such crashes

•

Company car drivers have a 49% higher collision risk ROSPA

•

Collisions incur at least €8 in hidden cost for every €1 direct cost? ILCI

•

Driver error is the primary factor in 90% of all fatal collisions RSA

* Estimates based on RSA/HSA data

About DriverFocus Established in 2006, DriverFocus is a pioneering Dublin-based, driver risk management service provider that uses cloud and mobile-based systems to help larger government and corporate employers, prevent collisions and so reduce associated harm, loss and liability exposure.

CIMA Ireland announces new Development and Quality Training partners CIMA Ireland is delighted to announce Coca-Cola Hellenic as a new CIMA Development partner and EMC as a CIMA Development and Quality Training partner.

Speaking on behalf of Coca-Cola Hellenic, Dragos Ion, CFO said ‘As CFO of Coca Cola Hellenic Ireland, I have a strong view that all finance managers need to be performance drivers and business navigators, seeking to do much more than a fundamental finance role. In order to achieve this, they need to have a strong qualification and CIMA offers the opportunity to link practical experience to execution of business strategy, leading to new and exciting ways of defining traditional finance roles. I would say never stop learning and I would encourage finance teams to challenge business decisions more, striving to be a real partner for the entire organisation.’

Commenting on behalf of EMC, Barry Murphy, ACMA, CGMA, Revenue Accounting Manager, ‘We are delighted EMC is a recognised accredited CIMA Development and Training partner. The benefits of having this are great for our organisation and for our individual CIMA members and students. The accreditations demonstrate and validate how our development framework is aligned with CIMA requirements and standards. It shows EMC is an employer of choice for retaining and attracting the best talent in the marketplace and these accreditations will further strengthen this’.

NETWORK NEWS | Summer 2013

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Top student award Congratulations to Robert Flanagan who received the Brendan Fitzgerald award, given to students who have achieved the overall first place in the TOP CIMA T4 part B exam.

Robert is the overall first place, prize winner for the T4 part B case study exam for the combined September and November 2012 exam sitting. Robert’s achievement has also seen him placed 12th in the world for that particular exam. Robert is also a recent graduate of the UCD Smurfit School MSc in Strategic Management Accounting.

Robert Flanagan pictured receiving the Brendan Fitzgerald award with Alan Flanagan, outgoing CIMA Ireland Chair and Denis McCarthy, CIMA Ireland Director.

New member s

Robert Fla nagan

People on the move Thomas Byrne has been appointed Chief Financial Officer at the HSE. The new post of Chief Financial Officer will deliver stability through the implementation of consistent systems and controls and transform the HSE’s financial system through the development of a new operating model for finance. The role will also define and implement a long term financial strategy for the HSE.

He is a non-executive director of Thompson Life and Pensions Ltd. and Thompson Insurances Ltd and intends to resign from these boards. He sits on the finance and risk committee of the Royal Dublin Society.

Tom is a former Director and Chief Finance Officer of BT Ireland.

He has also held the position of Vice President Finance with BT Global Services.

Educated at Belvedere College, he is a graduate of Trinity College Dublin and is a past president and trustee of the Trinity Business Alumni and former president of CIMA in Ireland. Tom has recently completed a PPP role in project finance with Irish Rail.

He has served as a board member of a number of companies and charities including Co-Operation Ireland, the US Ireland Alliance and Bus Eireann and is currently a board member of the BT Young Science and Technology Exhibition and other charities.

He has previously held the role of CFO with Bristol Myers Squibb in Ireland and senior finance roles with Smurfit Ireland.

Thomas Byrne 18

NETWORK NEWS | Summer 2013

MyCIMA A guide to changing your personal details via the website by using MY CIMA: You will need to log onto MY CIMA via this link www.cimaglobal.com/mycima and click on ‘my details’.

MyCIMA

Click on ‘my personal and employment details’ (you will need to re-enter your contact ID and password).

You will be taken to your personal details screen, where you are able to amend or update relevant information.

Under each section you will see a grey box with the word ‘change’ - simply click on this box and you will then be able to make the necessary changes.

Omnipro technical resources Both industry based CIMA members and members in practice (MIPs) can avail of technical resources and services through our partnership with specialist consultants, Omnipro, Ireland’s largest independent solution provider for accountants. Specifically the fee based service provides access to industry leading expertise across a wide range of technical areas including financial reporting, taxation, company law, HR and employment law amongst others.

This new technical resource service, tailored to CIMA members, provides direct access to a technical expert, ensuring a priority response to your query, either by telephone or email. Prices for the CIMA query helpline start at €350 per year for a two hour time block.

The technical resource centre for accountants in practice is available from €197 annually.

Find out more at: www.cimaglobal.com/omnipro

It is being delivered through a dedicated query helpline for all members and a technical resource centre for members in practice. It will particularly appeal to those who sometimes find that they would benefit from an experienced third party insight at short notice. The query helpline provides a team of experts available by phone to provide timely and practical solutions.

NETWORK NEWS | Summer 2013

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Pre-pack receiverships: The new game in town In the last year or so a new concept has begun to gain traction in the Irish corporate restructuring landscape, the so-called ‘pre-pack receivership’, or ‘pre-pack’, for short.

Major recent examples of pre-packs include the sale of Clery’s, Superquinn, and the recent (and ongoing) restructuring of Thomas Crosbie Holdings.

All of these cases have included some or all of the following facets: • a business in financial trouble, but with a potential for survival in

revised form; •

a financier or other third party with a right to appoint a receiver;

•

the introduction of new funds to at least partly assuage the relevant financier/third party; and

•

the leaving of some or all of the remaining debts in the rump business, with associated losses for unsecured creditors.

Key attractions of the pre-pack approach include speed and cost.

Typically, the receiver is only in place for a matter of hours as the entire structure of the receivership, including the identification of saleable assets, the selection of the purchaser and the cost of purchase, has been choreographed in advance.

Of course there are other advantages. In comparison with its nearest legislatively based equivalent, i.e. examinership, there is no judicial oversight, and, consequently, no independent consideration as to whether the proposals are in the best interests of the wider body of creditors. There is no transparency. Typically, third parties, employees and other relevant stakeholders know little, or nothing, until the transaction is complete. The purchasing party can cherry-pick those elements of the business that they wish to take forward, and leave the remainder to wither, eventually (presumably) through liquidation.

The three cases mentioned above are only a selection of those which have made mention in the media. There may be many more prepack receiverships taking place outside of the full glare of publicity.

The last four years have seen a massive upsurge in receiverships, from 59 in 2008 to 533 in 2011 (the most recent year for which the Companies Registration Office has released figures). There are no figures available for how many of these might be categorised as prepacks, but anecdotally the numbers are also on the increase.

In the UK, the use of pre-packs has become commonplace in the past few years, albeit typically in the context of administration rather than receivership. Administration is similar to examinership here but with much less formality and oversight attached to the process. For example, if a financial institution has the right to appoint an administrator under the terms of its loan agreement, it can do so without a hearing but, rather, by merely faxing the relevant court office. The primary purpose of administration is company rescue, unless a better return for creditors can be achieved by continued trading accompanied by a partial or whole company sale as a going concern. Only failing these can the administrator move to secure funds to make a distribution. In 2011 the UK Insolvency Service estimated that some 25% of the 2,808 companies that entered administration that year used the pre-pack procedure .

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NETWORK NEWS | Summer 2013

The UK has taken some tentative steps to regulate how pre-packs are carried out, most notably by the introduction of a Statement of Insolvency Practice, SIP 16 (issued jointly by the recognised professional bodies and the UK Insolvency Service). This brief document highlights some of the key tenets that Insolvency Practitioners (IP) should apply when considering whether to accept such engagements and, thereafter, in conducting such engagements.

These include the importance of: •

being clear as to the nature and extent of the IP’s role and relationship with the directors in the pre-appointment period.

Specifically, where appointed to advise the company, IPs should make clear that their role is to advise the company and not the directors as regards their personal positions;

•

the duties and obligations that IPs owe to the creditors in the pre-appointment period. In particular, they should be mindful of the potential liability which may attach to any person who is party to a decision that causes a company to incur credit in circumstances where there is no good reason to believe that it will be repaid;

•

proper disclosure to creditors as to why a pre-pack was executed.

Even with this standard in place, the UK Government is now reviewing the operation of pre-packs following concerns raised, in particular, by creditors, who very often only find out a pre-pack has taken place when they try and recover a debt.

All this, however, is a step ahead of where things currently stand in this jurisdiction, where the SIP does not apply.

Among the more contentious aspects of pre-packs are those where, after the receivership has taken place, it emerges the new owners are effectively the same people who owned the business previously.

This is a particular issue in the context of the UK review, where it is estimated that, in some 80% of cases, sales are to connected parties.

Under Irish law this brings about some specific issues. For example, a substantial property transaction between a company and one of its directors needs formal sanction from the company’s membership under section 29 of the Companies Act 1990. Of course, if the directors are also substantial, or the sole, shareholders of the company this may not present an issue but it is, nevertheless, a requirement that must be complied with. Another important consideration is the prohibition on receivers from selling significant assets to officers (and connected persons) of the company without giving the creditors 14 days’ notice . The purpose of these statutory provisions is clearly to protect the company’s members and creditors respectively. In addition, anyone involved in a pre-pack should be conscious of the risks associated with being involved in any transaction(s) entered into by a company for the purpose of intentionally defrauding creditors.

Another important consideration that must be borne in mind is the risk that the organisation appointing the receiver, through its actions, might be found to have acted as a shadow director of the (continued)

company, thereby subjecting itself to many of the responsibilities and obligations attaching to formally appointed directors.

The Minister for Jobs, Enterprise and Innovation has indicated recently that he has asked his Departmental officials to review the issue of pre-packs , in particular in the light of the media coverage associated with the Thomas Crosbie Holdings restructuring, elements of which are still playing out before the courts. No doubt the UK experience will feed into that review, as will the availability of other forms of restructuring, for example the more

streamlined examinership proposed in the new Companies Bill for small and medium sized companies. The uptake of that proposal may ultimately be predicated on the availability of an alternative restructuring option that currently operates with no oversight by the courts, no right of review by the creditors, and no transparency for other stakeholders.

Kevin Prendergast Head of Advocacy and Assessment Office of the Director of Corporate Enforcement

CIMA Advanced Diploma in Islamic Finance Registration is now open for the second CIMA Advanced Diploma in Islamic Finance blended learning tuition programme.

The CIMA Advanced Diploma in Islamic Finance (CADIF) is a single learning module. This case based module focuses on application of the knowledge and understanding gained in the diploma (CDIF) and on your ability to formulate, construct, appraise and recommend appropriate product structures and relevant strategies.

Revision seminars will commence in September as per schedule below. Enrolments for this programme will be taken up until 30 August.

Full programme dates are as follows: • Kick-start session – Saturday 24 August • Revision seminar 1 – Saturday 21 September • Revision seminar 2 – Saturday 19 October • Revision seminar 3 – Saturday 16 November

CIMA’s blended tuition package for this programme will include: • Comprehensive study guide • Four half day revision seminars in Dublin with input by leading Shari’ah academics • One full day face to face revision seminar with Dr Bakar The CADIF qualification will be awarded upon successful completion of the exam assessment. Assessment is through a case study examination allowing you to apply the principles studied within a real life situation.

While the CDIF provided a great grounding in

Islamic finance, the CADIF gives you excellent

exposure to the issues and trends in the industry.

It is your visa to go to major Islamic finance centres and work at the cutting edge of the Islamic finance industry. Once you have completed the CADIF you will be equipped to help solve Islamic finance issues and develop new and innovate Islamic finance products.

Dermot O Reilly, CADIF Graduate Amanie Advisors LLC (Dubai)

• Revision seminar 4 – Saturday 14 December • Revision seminar 5 – Face to face with Dr Bakar Saturday 11 January 2014

What will you gain?

• In depth knowledge of Islamic finance implications in business.

There are five main sections in the advanced diploma:

• Ability to apply Islamic finance principles to products and services.

• Shari’ah contracts, structuring process and financial environment

• Impact of structuring a financial institution based on Islamic finance principles.

• Islamic banking system and products • Equity, Sukuk and fixed income instruments • Takaful and Retakaful models and policies • Islamic risk-management tools and strategies.

• Develop innovative products and solutions for the Islamic finance services industry.

Should you require any further details or if you or a colleague would like to register for the CADIF please contact CIMA Ireland office at: T. +353 (0)1 643 0400 or E. cima.ireland@cimaglobal.com

NETWORK NEWS | Summer 2013

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