Activity-based costing to improve the financial management of sector for education and training authorities (SETAs)
Ngomane, Nqoba Mpumelelo
Ngomane, Nqoba Mpumelelo
Citations
Altmetric:
Abstract
The Sector for Education and Training Authorities (SETAs) were established to develop skills for the South African workforce by funding skills development programmes. Although complying with accounting practices as required by the Public Finance Management Act, they have no recognised costing system, leading to project budget write-back challenges. This situation gives rise to numerous challenges, including seriously hampering the development of the South African workforce. To mitigate this problem and considering the service charter of the SETA “projects”, the current study sought to examine the appropriateness of Activity Based Costing (ABC) to address the current deficiencies in the operations of the SETA. The study focused on the Wholesale and Retail SETA (W&RSETA). Through inspection of SETA regulations and manuals and conducting structured interviews with employees at the decision making and operational levels, the study found that even though the current operations (non-recognised costing system) already resemble aspects of ABC, further aspects of ABC may be recommended. The study used ABC to derive an adjustment to the current stipend rate and the training provider compensation procedures. It also suggested solutions to procedural issues challenging the W&RSETA thereafter. Since all the SETAs were established for the same purpose, have common objectives and are operating similarly, the results may be transferable to other SETAs.
Description
Submitted in fulfilment of the requirements for the degree Magister Technologiae: Cost and Management Accounting in the Department of Managerial Accounting and Finance, Faculty of Economics and Finance at the Tshwane University of Technology.
Date
2019-06-01
Journal Title
Journal ISSN
Volume Title
Publisher
Tshwane University of Technology
Collections
Research Projects
Organizational Units
Journal Issue
Keywords
Education, Skills, Development, Training, South Africa