Mentoring Guidelines for Professional Accountancy Organizations
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1 [Type text] IFAC Develping Natins Cmmittee January 2008 Mentring Guidelines fr Prfessinal Accuntancy Organizatins
2 2 The missin f the Internatinal Federatin f Accuntants (IFAC) is t serve the public interest, strengthen the accuntancy prfessin wrldwide and cntribute t the develpment f strng internatinal ecnmies by establishing and prmting adherence t high-quality prfessinal standards, furthering the internatinal cnvergence f such standards and speaking ut n public interest issues where the prfessin s expertise is mst relevant. Cpies f this paper may be dwnladed free-f-charge frm the IFAC website at Internatinal Federatin f Accuntants 545 Fifth Avenue, 14 th Flr New Yrk, NY USA Cpyright January 2008 by the Internatinal Federatin f Accuntants (IFAC). All rights reserved. Permissin is granted t make cpies f this wrk prvided that such cpies are fr use in academic classrms r fr persnal use and are nt sld r disseminated, and prvided further that each cpy bears the fllwing credit line: Cpyright January 2008 by the Internatinal Federatin f Accuntants. All rights reserved. Used by permissin. Otherwise, written permissin frm IFAC is required t reprduce, stre r transmit this dcument, except as permitted by law. Cntact permissins@ifac.rg. ISBN:
3 Intrductin The Missin f IFAC is t serve the public interest by cntinuing t strengthen the wrldwide accuntancy prfessin and cntribute t the develpment f strng internatinal ecnmies. This is achieved by establishing and prmting adherence t high-quality prfessinal standards, furthering the internatinal cnvergence f such standards and speaking ut n public interest issues where the prfessin s expertise is mst relevant. The Statements f Membership Obligatins (SMOs) prvide clear benchmarks t current and ptential IFAC members t assist them in ensuring high quality perfrmance by prfessinal accuntants. The SMOs cver an IFAC member bdy s bligatins t supprt the wrk f IFAC, the wrk f the Internatinal Accunting Standards Bard (IASB), and bligatins regarding quality assurance and investigatin and discipline. The IFAC missin is accmplished in a number f ways, including thrugh cllabratin between prfessinal accuntancy rganizatins and varius stakehlders. It is intended that this publicatin, Mentring Guidelines fr Prfessinal Accuntancy Organizatins (the Guidelines) will materially cntribute t the achievement f IFAC s missin by further facilitating such cllabratin. The Guidelines are issued specifically fr prfessinal accuntancy rganizatins, including IFAC member bdies and ptential IFAC members. In particular, the Guidelines are designed t assist in the creatin f mentring relatinships between prfessinal accuntancy rganizatins t achieve cmpliance with the SMOs and t address related matters such as strengthening institutinal gvernance arrangements. The inherent and essential characteristics f mentring include mutual trust and respect between the parties and an unequivcal determinatin t achieve the established bjectives f their agreement. These Guidelines utline hw this can be achieved s that the establishment f mentring relatinships will effectively cntribute t the advancement f the prfessin f accuntancy and a greater understanding amng prfessinal accuntancy rganizatins. The Guidelines will cmplement ther IFAC publicatins intended t assist IFAC members and ptential members in meeting their bligatins t IFAC and in develping sustainable capacity. In particular, the Guidelines are designed t encurage the creatin f mutually beneficial relatinships between develped prfessinal accuntancy rganizatins (the mentr) and develping prfessinal accuntancy bdies (the mentee). The bjectives are t assist the latter t meet their bligatins t IFAC, t build their sustainable capacity and t facilitate the ability f established prfessinal accuntancy rganizatins t share their accumulated knwledge. The IFAC Develping Natins Cmmittee acknwledges the significant cntributin f CPA Australia in the preparatin f these Guidelines. 3
4 CONTENTS Page Intrductin... 3 Glssary... 5 Sectin 1: Objective f Mentring Guidelines... 7 Sectin 2: Value f Mentring... 8 Sectin 3: Mentring Cnsideratins... 9 Sectin 4: Making Mentring Wrk Sectin 5: The Mentring Agreement Sectin 6: Invlvement f Other Entities Sectin 7: Managing Pssible Risks Appendices Appendix 1: Implementatin Plan Appendix 2: Sample Memrandum f Understanding fr Mentring
5 Glssary The fllwing glssary f cmmnly used terms is prvided t assist prfessinal accuntancy rganizatins 1 invlved in mentring use these Guidelines: Mentr An rganizatin that guides and supprts anther rganizatin s actins t imprve effectiveness and build sustainable capacity. Mentee An rganizatin receiving guidance and supprt t imprve effectiveness and build sustainable capacity. Mentring 2 can be defined in many ways, s the fllwing have been included t demnstrate the breadth and depth needed f the relatinship: A twinning arrangement where ne party [the mentr] freely, willingly and penly shares its expertise, experience, knwledge and intellectual capital with the ther party [the mentee] t assist the latter in meeting its bligatins t IFAC and t building sustainable capacity; it is in essence an hnrary r vlunteer relatinship and can be viewed as a crprate scial respnsibility f the mentr. The actin f ne party wrking with anther t achieve an agreed mutually beneficial utcme; An alliance f ne r mre parties that creates a space fr dialgue which results in reflectin, actin and learning fr bth; and A partnership where ne party has access t the resurces and expertise f the ther party in rder t increase their wn capacity and effectiveness and their wn prfessin. Statements f Membership Obligatins (SMOs) - IFAC issues Statements f Membership Obligatins cvering the fllwing areas f the accuntancy prfessin: 1. Quality Assurance 2. Internatinal Educatin Standards fr Prfessinal Accuntants and Other IAESB Guidance 3. Internatinal Standards, Related Practice Statements and Other Papers Issued by IAASB 4. IFAC Cde f Ethics fr Prfessinal Accuntants and ther IESBA prnuncements 5. Internatinal Public Sectr Accunting Standards and Other IPSASB Guidance 1 2 Mentring relatinships may als be established with individuals and reginal and ther accuntancy rganizatins. Fr purpses f these Guidelines, cnsulting relatinships, e.g., cst recvery r fr prfit arrangements, are nt cnsidered t be mentring relatinships. Althugh these types f arrangements have many similarities t the mentring relatinship which is the subject f these Guidelines, the financial and related cmmitments invlved create different imperatives and cmmitments. Cnsulting relatinships typically require the establishment f a cntract between the parties and therefre represent a mre frmal legal agreement. Thus while many aspects f these Guidelines are cnsistent with cnsulting relatinships, users are advised that the Guidelines are intended fr hnrary, vlunteer r crprate scial respnsibility type f mentring relatinships. 5
6 6. Investigatin and Discipline 7. Internatinal Financial Reprting Standards The Statements f Membership Obligatins (SMOs r Statements) prvide clear benchmarks t current and ptential IFAC members t assist them in ensuring high quality perfrmance by prfessinal accuntants. 6
7 Sectin 1: Objectives f Mentring Guidelines Mentring is a rewarding prcess that brings benefits t the parties invlved. It exemplifies sme f the best features f being a prfessinal, particularly the desire t assist ther prfessinals, which in turn brings benefits t a brader cmmunity. These Guidelines have been prepared t supprt the develpment and strengthening f the accuntancy prfessin. The primary aim f these Guidelines is t prvide guidance t mentrs and mentees n hw t enter int and sustain a mentring relatinship that will achieve the mutually agreed utcmes. Specifically, the bjectives f these Guidelines are t assist a prfessinal accuntancy rganizatin (the mentee) with: Identifying a mentr; Creating and maintaining an effective and efficient structure f gvernance, management and finance, including membership supprt systems, necessary t sustain the rganizatin; and Achieving cmpliance with the SMOs. Mentring in these circumstances requires a high degree f mutual respect and gdwill, cmmitment, and trust between the tw bdies and an in-depth understanding f the circumstances and capability f the mentred bdy by the mentring bdy. Effective mentring is based n these essential attributes. These Guidelines have been prepared based n the successful experiences f prfessinal accuntancy rganizatins perfrming the mentr rle with mentee bdies in develping natins t assist the latter in becming members f IFAC and in cmplying with the SMOs. IFAC, thrugh the Develping Natins Cmmittee (DNC), has an imprtant rle in this mentring functin. The DNC will prvide advice, guidance and supprt t the parties as they prgress tward selectin f partners, the mentring agreement, and then mve the agreement t successful cmpletin. Primarily, hwever, the success f a mentring agreement rests with the prfessinal accuntancy rganizatins invlved and their cmmitment t achieve the agreed utcme. 7
8 Sectin 2: Value f Mentring Mentring is a synergistic activity which invlves ne bdy sharing its attributes with anther. When it is perfrmed effectively, it can bring clear and sustainable benefits nt nly t the parties directly invlved, but als t the brader lcal and glbal accuntancy cmmunities. Mentr Mentee Mentring assists the mentr in meeting its crprate scial respnsibility by wrking with the mentee. In additin, it prvides the pprtunity fr the mentr fr self-evaluatin f is perfrmance against the SMOs and the pprtunity t develp a relatinship with anther bdy [the mentee] that therwise may nt arise. Mentring assists a prfessinal accuntancy rganizatin t reach its full ptential and take its place amng the glbal accuntancy prfessin. Cncurrently, it assists in the ecnmic grwth f the relevant cuntry. Specific benefits t the mentee might include: Increase in number f prfessinal accuntants; Enhanced cmpetency f prfessinal accuntants; Imprved structure and peratins f the mentee; Ability t demnstrate cmpliance with the SMOs; and Enhanced accuntability in the relevant cuntry. The Prfessin IFAC The Public Interest Mentring supprts the develpment f the glbal and natinal prfessin by strengthening accuntancy bdies, which enables them t supprt their individual members in delivering high quality services and fllwing the highest ethical standards. It cntributes t the develpment f high quality prfessinal standards, supprts implementatin f standards and cntributes t the effective enfrcement f such standards. In this respect, it supprts the prfessin in prtecting the public interest. Mentring represents ne frm f cllabratin thrugh which IFAC can facilitate the sharing f its members knwledge and expertise fr the betterment f the prfessin and thse it serves. Effective mentring relatinships serve the public interest by strengthening the wrldwide accuntancy prfessin s it can effectively cntribute t the develpment f strng internatinal ecnmies. 8
9 Sectin 3: Mentring Cnsideratins Attitude t Learning. Successful mentring and being mentred require a firm cmmitment by all parties t develpment and learning. Experience shws that this cultural respnsibility needs t permeate each bdy s attitude t the ther fr successful mentring. Selectin f Mentr by Mentee. Generally the mentee will instigate a mentring arrangement. The DNC as well as reginal and ther accuntancy grupings may assist by identifying bdies that it believes are suitable as mentrs. Hwever, the decisin n the selectin f the parties t fill these rles rests with each bdy invlved. A mentee may wish t have mre than ne mentr in rder t access different areas f expertise. Hwever, the mentee wuld nrmally want t limit the ttal number f simultaneus mentring relatinships in rder t fcus available resurce and limit any ptential cnfusin. Characteristics f a Mentr. The mentr frequently plays a leading rle in the Mentring Agreement (See Sectin 5). It is essential that the mentr cmprehends the dimensins f its respnsibilities befre entering int the agreement. Characteristics f a mentr typically include the fllwing: Being a full member f IFAC having demnstrated best endeavrs with respect t the SMOs; Cmmitment frm its gvernance and management t the rle and t seeing the task thrugh t successful cmpletin; Having a full understanding f the mentee its gvernance and management structures and their relative respnsibilities including any gvernment versight, rle r authrity, missin and plans, resurces, membership, and external stakehlders; Regarding the mentee as an equal partner in all circumstances; Having capacity t fulfill its rle; Ability t establish and maintain the integrity f an amicable relatinship at all times with the mentee; Having a clear understanding f the scial respnsibility and assciated csts f the task; Demnstrating respect fr mentee and sensitivity t its culture; Flexibility t adapt t changed circumstances and t amend the agreement as required; and Knwing when the time is right fr the cnclusin f the mentring relatinship. Characteristics f a Mentee. The rle and cmmitment f a mentee in a mentring arrangement are critical t the future viability and sustainability f the rganizatin. The arrangement prvides a valuable pprtunity fr the mentee t twin with an experienced and willing partner fr the benefit f the mentred bdy. The mentring experience can be challenging at times and the mentee must be prepared t wrk twards meeting the agreed bjectives. The mentee must be cmmitted t the Mentring Agreement and t cmmit its resurces t ensure successful cmpletin. Characteristics f a mentee typically include the fllwing: 9
10 Willingness t assume respnsibility fr self imprvement; Readiness t wrk and receptiveness t feedback and evaluatin; A desire t increase and invest in building sustainable capacity; Willingness t adapt t and implement the recmmendatins f the mentring agreement; and An understanding f gvernance and management structures and their relative respnsibilities. Characteristics f a Mentr and Mentee Characteristics f bth the mentr and mentee include the fllwing: Ability and willingness t wrk as equal partners; Capacity t fulfill rles; Ability t establish and maintain a friendly and prfessinal relatinship at all times; Mutual respect and sensitivity t the culture f each party; Cmmitment t treat infrmatin received in cnfidence; Availability t the ther party during planning and implementatin; Willingness t regularly cmmunicate abut difficulties, prgress and accmplishments with each ther and with IFAC; Discretin; Patience; and Demnstratin f enthusiasm and cmmitment t the cause. 10
11 Sectin 4: Making Mentring Wrk Successful, effective, enduring and fulfilling mentring requires a clear cmmitment t cmplete the task as utlined in the agreement. While the agreement is nt a cntract, it is an bligatin that must be cmpleted as each party entrusts the ther with resurces and intellectual capital as well as with prprietary knwledge f their internal plices and wrkings. It is a sharing experience that, when effectively implemented, will bring benefits t bth parties and, in turn, t their members and the wider cmmunity they serve. The fllwing matters shuld be cnsidered in supprting a successful mentring relatinship: 1. Selectin f parties matters t cnsider: Cmmn business language; Similar cultures; Matching values and principles; Understanding f the imperatives and pririties f the ther parties but particularly the needs f the mentee; Sensitivity t difficulties that may arise and be endured during the mentring prcess by the ther party; and An ability t identify slutins when difficulties are encuntered during the mentring prcess withut cmprmising standards r values. 2. Establishment f relatinship: A face-t-face meeting is recmmended as the best means f establishing the cmpatibility f the parties; During this meeting bth parties need t address and satisfy themselves f their ability t wrk with and treat the ther party as an equal; and Open and frthright negtiatins are required n the task identified by the mentee t assess its achievability within the prpsed timeframe. (See Sectin 5). 3. Invlvement f IFAC: The DNC and IFAC staff may be cnsulted at all key stages such as: Needs assessment; Develpment f actin plans; Implementatin f actin plans; and Pst- implementatin review. IFAC will regularly acknwledge bdies ding this wrk, cnvene meetings frm time t time f mentr bdies and btain feedback frm mentees. 11
12 Sectin 5: The Mentring Agreement The Mentring Agreement frms the basis f a mentring arrangement. It is the key dcument that prescribes the respnsibilities f, and cmmitments made, by bth parties t the successful cmpletin f the mentring arrangement. Develpment f the agreement is a critical step in the mentring prcess as it requires cnsideratin f what pririty r pririties are necessary t build sustainable capacity in the mentee s prfessinal bdy. Cnsideratin shuld be given t the level f authrity within each rganizatin (President, Chief Executive Officer, gverning cuncil, etc.) that shuld be invlved in apprving the Mentring Agreement. The agreement shuld typically address: Scpe f Prject Clear bjectives and desired utcmes; Timeline fr cmmencement and cmpletin f the task; Preparatin f a prject plan with realistic milestnes; Agreement n milestnes fr peridic review f prgress; Frmat f peridic review f prgress; Where there is a linkage with IFAC membership and/r they cnsider hw IFAC shuld be infrmed and/r cnsulted; Preparatin f cmpletin reprt; and Pst-implementatin review. Respnsibilities f the Parties The need fr explicit cmmitment f bth parties frm the highest levels f each rganizatin; Acknwledgement that each bdy will be respnsible fr its wn csts; The understanding that the mentee will bear the csts f its internal develpment necessary t meet the aims f the agreement; Regularly cmmunicatin abut difficulties, prgress and accmplishments with each ther and with IFAC; An understanding abut hw t reslve cnflict; and Appraisals f mentr by mentee. A sample Mentring Agreement is included in Appendix 2. 12
13 Sectin 6: Invlvement f Other Entities It is imprtant t be aware that the accuntancy prfessin and the rganizatins that regulate and/r represent the prfessin d nt perate in islatin. The envirnment in which the prfessin perates and the extent t which the prfessin is supprted by ther entities can impact the quality f wrk prvided by the prfessin. Gvernments Gvernments have imprtant rles in the develpment and regulatin f the accuntancy prfessin s that the prfessin can take its rightful place in an ecnmy and cntribute t the ecnmic develpment f the cuntry. It is, therefre, imprtant that gvernments be supprtive f actins, including mentring arrangements, which will assist the prfessinal accuntancy rganizatin in meeting the requirements f SMOs. It is als imprtant fr the mentee t cnsult with and keep its gvernment infrmed abut mentring arrangements tgether with prgress being made in implementatin. Likewise, it is imprtant fr the mentr t keep its gvernment and its gvernment s representatives in the mentee s cuntry aware f any mentring arrangements invlving an ffshre partner. Other Stakehlders Other stakehlders such as regulatrs and academic institutins als play imprtant rles in the develpment f the prfessin and therefre shuld be infrmed f mentring arrangements. Recgnized Reginal Organizatins (RROs) and Acknwledged Accuntancy Grupings (AAGs) Aid Agencies These are independent bdies that share IFAC s membership and have bjectives similar t IFAC s and wuld by such nature be als supprtive f IFAC initiatives fr the advancement f the prfessin. These RRGs and AAGs may assist in identifying r acting as mentrs. Multilateral and natinal agencies (such as the Wrld Bank, African Develpment Bank, Asian Develpment Bank, Inter-American Develpment Bank, USAID, AusAID, DFID, etc.) supprt the develpment f the prfessin with the bjective f assisting cuntries achieve lng-term sustainable ecnmic grwth and reductin f pverty. Such agencies cntribute t the develpment f the prfessin in a number f ways including needs assessments prgrams, cuntry actin plans, high-level plicy advice, etc. IFAC wrks in clse cllabratin with multilateral aid agencies t identify develpment needs and cmmn tls t facilitate and cntribute t develpment wrk. 13
14 Sectin 7: Managing Pssible Risks There are a number f ptential risks assciated with a mentring arrangement. The best way t either avid r minimize these risks is t ensure that the prcess fr negtiatin f the Mentring Agreement is rigrus and cmplete. Experience shws that mst parties are t ambitius in their assessments f their abilities t achieve what, in many cases, are significant changes in the culture f rganizatins, increased wrklads in implementatin and maintenance tgether with assciated prcesses, reprting required f members, regulatin and enfrcement as well as invlvement f ther interested parties such as gvernments. Ptential risks t bth mentr and mentee: An verly ambitius timeframe included in the agreement; Failure t establish clear expected utcmes; Inability t establish rapprt with the ther party; Exhaustin because f the cmplexity and/r size f the task; Lss f interest; Lss f supprt by the senir management; Frustratin with the ther party; Lack f funding and resurces; Lack f gvernment supprt; Legislative barriers; Breakdwn in cmmunicatin; and Cultural insensitivity. Ptential risks t the Mentr: Failure t deliver n time; Failure t allcate adequate resurces; Lack f cmmitment; and Lack f requisite skills. Ptential risks t the Mentee: Failure t respnd t the mentr n time; Failure t allcate adequate resurces; Failure t act; and a Lack f cmmitment. The key t aviding and minimizing risks is a pragmatic apprach t the Mentring Agreement and the tasks that it encmpasses. 14
15 Appendix 1: Implementatin Steps 1. Identificatin by a prfessinal accuntancy rganizatin that ne r mre matters need t be addressed by the rganizatin s that it can mre effectively meet its respnsibilities t the public and its members. 2. Identificatin f suitable mentr see Sectin Arrange a meeting between the mentr and mentee t determine their mutual suitability and desire t enter int the agreement. 4. Negtiatin n the agreement See Sectin Jint drafting f the agreement. 6. Implementatin f the mentring agreement. 7. Peridic review f prgress. 8. Preparatin f cmpletin reprt. 9. Pst-prject review and reprt. 15
16 Appendix 2 MENTORING GUIDELINES FOR PROFESSIONAL ACCOUNTANCY ORGANIZATIONS MENTORING AGREEMENT Between Institute f Chartered Accuntants Erewhn (the Mentr) And Assciatin f Accuntants and Auditrs f Basc (the Mentee) Backgrund The Institute f Chartered Accuntants f Erewhn (ICAE), as the natinal accuntancy rganizatin recgnized under Erewhn s Accunting Law (revised 1985), and IFAC member since 1977, represents ver 10,000 chartered accuntants perating in public practice, business, gvernment and academe. In accrdance with ICAE s missin f prviding assistance in the develpment and enhancement f the accuntancy prfessin, ICAE is cmmitted t act as Mentr t prfessinal accuntancy rganizatins seeking t becme IFAC members. The Assciatin f Accuntants and Auditrs f Basc (AAAB) was established in 1996 and recnstituted in 2005 under the Accunting Law f 2005 as the natinal accuntancy rganizatin respnsible fr educatin, ethics and certificatin f prfessinal accuntants. As an rganizatin cmmitted t cnvergence with Internatinal Standards, AAAB seeks a prfessinal accuntancy bdy t act as a mentr in develping prgrams and training curses as part f its lng term bjective f meeting IFAC s membership requirements. Objectives AAAB has a lng term bjective f btaining IFAC membership and cnvergence with Internatinal Standards and practices. AAAB has identified the fllwing specific prjects as part f this bjective: 1. Increase its technical and perating capacity; 2. Expand its educatin and certificatin requirements in accrdance with the Internatinal Standards n Educatin; and 3. Expand its investigatin and disciplinary prcess in accrdance with Statement f Membership Obligatin 6, Investigatin and Discipline. This Mentring Agreement (MA) sets ut the agreement between the ICAE t act as Mentr t AAAB in develping and implementing the abve activities. 16
17 Respnsibilities All parties: MENTORING GUIDELINES FOR PROFESSIONAL ACCOUNTANCY ORGANIZATIONS ICAE and AAAB will draw n the guide, Establishing and Develping a Prfessinal Accuntancy Bdy, develped by the IFAC Develping Natins Cmmittee in carrying ut their respnsibilities. ICAE and AAAB will apprve all public annuncements related t the prjects being carried ut thrugh this MA. ICAE will: 1. Nminate an ICAE Prject Team Leader t be AAAB s main cntact 2. Assist AAAB in benchmarking its current prgrams and activities against the IFAC membership requirements with primary emphasis n the requirements established by SMO 2, SMO 4 and SMO Assist AAAB in benchmarking its current accuntancy educatin prgram with ICAE s Chartered Accuntancy Prgram and the requirements f Internatinal Educatin Standards issued by the Internatinal Accunting Educatin Standards Bard. 4. Assist AAAB in the develpment f a membership database. 5. Assist AAAB in the develpment f an ethics reslutin prcess. 6. Initiate the develpment f Actin Plans and related wrk prgrams with regards t the abve items. 7. Assist AAAB in preparing a lnger term Actin Plan fr the future develpment f a cntinuing prfessinal educatin prgram and due prcess fr cnvergence with Internatinal Standards n Auditing. AAAB will: 1. Assign the AAAB Executive Directr t be ICAE s main cntact persn thrughut the term f this MA. 2. Include the abve prjects in its wrk prgram. 3. Allcate apprpriate staff and technical vlunteers t wrk with ICAE in carrying ut prject tasks. 4. Prvide translatins f relevant dcuments frm lcal language t English and relevant Internatinal Standards and ther prnuncements frm English t the lcal language. 5. Establish an Investigatin and Disciplinary Prcess Review Task Frce. 6. Appint the Chairman f the AAAB Educatin Cmmittee t be the primary cntact between AAAB, ICAE and university and ther educatin prviders participating in the prject. 17
18 Time Frame and Evaluatin Pints The first tw prjects meetings are scheduled fr: Nvember 10-11, 2008 in Basc January 22-25, 2009 in Basc Key Prject Activities and Timetable January-August 2009 Benchmarking activities Develp membership database AAAB Cuncil begins prcess t establish an Investigatin and Discipline Review Task Frce (IDRTF). The IDRTF shuld include an ICAE representative. Develp Actin Plans fr the develpment f new educatin mdules based n ICAE syllabus based n benchmarking results and lcal needs Hire new AAAB technical manager September 2009 June 2010 Develp Actin Plan t implement IDRTF review results July 2010 August 2010 Update Actin Plans and wrk prgrams fr fcusing n: Implementatin f new curse mdules Intrducing ethics cnflict reslutin prcess Implementing pririty actins identified by the IDRTF Identify pprtunities t apply fr additinal natinal and internatinal develpment funding September 2010 Prepare final cmpletin reprts. Prgress Reprting and Evaluatins AAAB and ICAE will prepare a prgress reprts fr submissin t AAAB s Cuncil and the Ministry f Finance f Basc every 3 mnths beginning 3 mnths frm the date f the signed MA t the cmpletin date. The prgress reprt will identify cmpleted and t be cmpleted tasks against an Actin Plan. At the cmpletin f the prject, AAAB will prepare a summary f utcmes against the MA terms. This cmpletin reprt will include an evaluatin f ICAE as mentr. 18
19 Cnflict Reslutin The prgress reprt will state whether the parties t this MA have met their stated respnsibilities. The prgress reprt shall be signed by all parties t cnfirm their agreement. In the event f cnflicts with regards t the terms f this MA, AAAB and ICAE will seek t reslve the cnflict with the assistance f a mutually appinted arbitratr. Where AAAB and ICAE are nt able t reslve a cnflict within 3 mnths f meeting with an arbitratr, either AAAB r ICAE may request terminatin f this MA. Csts AAAB has applied fr and received a grant frm the Ministry f Finance f Basc fr use in develping prgrams and activities t supprt its IFAC membership and cnvergence bjectives as well as specific activities directly related t its respnsibilities as specified in the Accunting Law f AAAB will be respnsible fr all csts relating t: Travel and accmmdatin incurred fr AAAB staff and vlunteers, Translatin csts, Any ther csts incurred t purchase assets fr the develpment f prgrams and activities relating t these prjects. ICAE will be respnsible fr all csts relating t: Time incurred by ICAE staff and cnsultants participating in the prjects and related mentring activities, Travel and accmmdatin incurred fr ICAE staff and cnsultants. All parties will maintain a recrd f their travel, travel related and level f effrt csts f this MA. 19
20 Effective Date This MA will take effect when signed by the parties and will terminate n later than September 30, 2010 r earlier at the discretin f the parties t this MA. It is recgnized and encuraged that ICAE and AAAB cntinue their cperatin beynd the term f this MA. MADE AND ENTERED INTO BY: Signed: Date: Mr. YYYYY Chief Executive Officer, ICAE Signed: Date: Ms. ZZZZZZ Chief Executive Officer AAAB 20
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22 Internatinal Federatin f Accuntants 545 Fifth Avenue, 14 th Flr, New Yrk, NY USA Tel +1 (212) Fax +1(212)
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