Theses and Dissertations (Accountancy)
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Item Perceptions on 'free' tertiary education and operational budgeting within a public university(Vaal University of Technology, 2022-07) Tewe, Remilekun Felix; Siewe, L.; Beneke, J. B., Dr.A series of strikes by public university students protesting the exorbitant cost of tertiary education across South Africa, a country where extreme poverty is pervasive, brought the entire country to a virtual standstill in 2015 and set the stage for government to be coerced into implementing a ‘free’ tertiary education policy that it neither planned nor prepared for. The result is that, since then, universities across the country have struggled greatly to meet their financial needs. The taxation rates have being increased, and thus government must protect the monetary space to support their plans in upcoming years. This implies that any financing activated by the government to support the financial difficulties in tertiary education must be re-prioritized from other government programmes. Therefore, what should the universities’ management do to strike a harmony between budget cuts from the government as result of ‘free’ tertiary education implementation, inflationary increment of operational expenses and ‘free’ tertiary education? The primary objective of this study is to examine the perceptions of Heads of Department, and Director of directorates on ‘free’ tertiary education in relation to operational budgeting within a public university in the Gauteng province. The study embraced critical realism as its research paradigm as per a qualitative research approach, using semi-structured interviews to address the empirical objectives and a narrative literature review method to engage with the theoretical objectives of the study. The findings of the study reveal that participants welcome ‘free’ tertiary education as a system but are sceptical about its sustainability. This is because the government of South Africa failed to conduct a proper feasibility study on how to raise the funds needed to make the model work. The participants also specified that implementation of ‘free’ tertiary education in a developing economy such as South Africa will have a range of negative effects and will increase the financial burden on taxpayers. Thus, there is a need for the public university’s management studied to cultivate a sound and irrepressible monetary policy that can guarantee sustainable academic programmes and operations at the university. The study also contributed to the existing body of knowledge in the field by establishing that inevitable budget cuts by the government could lead to cost-cutting, compelling universities to reduce academic programmes offered, regardless of the significance of such programmes for national development in South Africa. The study recommends ways of generating additional income to cushion the negative effects of consistent budget reductions in subsidies to public universities as result of difficult economic conditions in the country.Item An evaluation of budget allocation and expenditure patterns of Sedibeng district municipality on service delivery(Vaal University of Technology, 2012-10) Imuezerua, Emmanuel Oiseomaye; Naidoo, Prakash, Prof.; Okubena, Olumunyiwa, Dr.The delivery of service to communities by the municipalities has become a major challenge due to the backlog of service delivery created by the apartheid government in South Africa. The recognition however of local government as a tier of government has gained a new dynamic role as instrument of service delivery. The ultimate objective of this study is to determine the nature of budgetary procedure applicable to the municipality and also examine the budgetary allocation of Sedibeng District Municipality with regard to service delivery. The empirical study consisted of a structured questionnaire handed out to a sample population of officials at Sedibeng District Municipality. The officials were asked to respond to questions on budget allocation and compilation and how service is delivered. A total of thirty - four questionnaires were returned from the forty issued, which generated an 85% response rate. A semi structured interview was also conducted with staff of the budget unit and the Integrated Development Plan unit. The validity and reliability of the data was measured using the Cronbach’s Alpha (a statistical test used in order to generate internal consistency of the questionnaire) and analysed by regression analysis. However the findings of the empirical investigation indicated that although the municipality claim to operate the incremental method of budgeting, the zero based method and trend analysis based method are used in certain sections of the budget which contributes to shortfall in service delivered to the communities. The study concluded with a number of recommendations. These address the short comings and improvements that can be made for effective service delivery to communities.Item The influence of financial literacy on the financial behaviour and financial decision making of employees at a selected University of Technology(Vaal University of Technology, 2023-01-11) Makhuvele, Ephraim M.; Maseko, G. J., Dr.; Beneke, J. B., Dr.Financial literacy has an important effect on financial behaviour, which is an important factor that plays a vital role in sound decision making. Financial literacy and sound financial decision making determine not only the financial behaviours of individuals but also their financial well-being. The literature review showed that different authors have different understanding pertaining to financial literacy. Determinants of literacy (demographics) were identified in the literature and highlighted. Furthermore, measures of personal financial literacy which are budgeting, investing, borrowing and protection were highlighted in the literature. The lifecycle theory was outlined to show the influence of financial literacy on the financial behaviour and decision making. This study aimed to determine the influence of financial literacy on the financial behaviour and financial decision making of employees. The population in this study was employees of the Vaal University of Technology who are employed by the university, with a total of 2072 employees. The sample was determined by using simple random sampling, which obtained 205 samples. The collection of primary and secondary data was done using the quantitative approach, together with an exploratory and descriptive design, which was used in designing the questionnaire. Data were collected from employees from the Vaal University of Technology through a self-administered questionnaire. The COVID-19 pandemic affected the collection of data negatively as some employees did not have access to their emails; therefore, they did not participate in the study. The analytical tool in this study is the descriptive analysis and Chi Square. Data was processed by using the SPSS program and Microsoft Excel. The results showed the overall financial literacy index was 0.693 which showed that most of the respondents have a high level of financial literacy. This study concluded that high levels of financial literacy has had a positive influence on the financial decision making of employees towards their money management skills and has led to their ability to behave correctly. The study recommended that employees should change their attitudes towards money management, and they must acquire the necessary financial knowledge through financial education and training to improve their level of financial literacy.Item The effectiveness of credit management policy implementation on residents' accounts in a Sedibeng district municipality(Vaal University of Technology, 2021-12) Masungini, Abba Walker; Robbetze, N.; Maseko, G. J., Dr.Municipal debt has been steadily rising year after year, jeopardizing the financial stability of many municipalities. There is a commonly overlooked provision within the Municipal Finance Management Act, section 64(2)(a), that states that the municipal manager must ensure that the municipality has a functional credit management and debt collection system. However, it is also the obligation of municipal residents to ensure that they pay rates and taxes for the services supplied to them in order to ensure the sustainability of service supply. Municipalities rely on revenue collection to ensure their survival and viability. Due to the importance of this sphere of government, this study investigates whether residents respond to the credit management policy of the municipality and whether it is implemented effectively. The study does so by looking at the relationship between credit management policy implementation and service delivery in the selected municipality in Sedibeng District. The study followed a quantitative research methodology, using self-administered hard copy questionnaires to collect data from 510 residents of municipality A of Sedibeng District municipality. Seven (7) different locations with the demographic of municipality A of Sedibeng District were selected to participate in the study, with a response rate of 100%. Data were statistically analysed through SPSS and testing included correlation analysis, factor analysis, frequency counting and ANOVA testing. The data collected revealed that there is a lack of credit management policy implementation and enforcement when it comes to non-payment of municipal outstanding accounts. According to the quantitative findings, residents have a negative attitude towards the credit management policy. However, the findings also showed that there are factors that influence responsiveness such as poverty, (un)employment and educational level. The findings also revealed a significant relationship between credit management policy and service delivery. Failure to pay municipal debts results in poor service delivery by municipalities. because they lack the financial stability necessary to provide a sustainable service supply. In turn, poor service delivery results in residents refusing to pay municipal debts because they are unwilling to pay for poor services. Recommendations such as continuous review of critical debt recovery policies, rebates and discount granted to residents, the introduction of advanced technical systems, quality service delivery, employee training and development and the like will assist municipalities to improve the effectiveness of their credit management policy implementation. The limitations to of study entails difficulty in obtaining municipal ethical clearance, because municipal officers are concerned about confidentiality. Furthermore, there were the COVID-19 regulations posed by the South African government to curb the spread of COVID-19 which also had an impact in collecting data from participants. The findings may not be generalised to a larger population of all South African municipalities.Item Exploring the use of budgets by small businesses in the township of Sharpeville(Vaal University of Technology, 2021) Thithi, Mpho Jeannette; Robbetze, N.; Beneke, J., Dr.The South African government recognises the small, micro and medium enterprises (SMMEs) for their potential to reduce unemployment and poverty by creating job opportunities, enhancing skills, contributing to the country’s gross domestic product (GDP) and, ultimately, improving the standard of living. The SMMEs in South Africa have high failure rates despite the government’s efforts to develop the SMME sector. The inability to budget, among other factors, is identified as one of the factors that contribute to the failure rate. The main aim of this research study was to establish whether small business owners (formal and informal) in the retail and service sectors in Sharpeville make use of budgets as part of their business practice. To fulfil the primary aim, the study set out secondary objectives to establish whether small businesses (formal and informal) in the retail and service sectors used budgets and determine the types of budgets used, the purpose for which budgets are used, the perception on the use of budgets and the reasons for non-use of budgets. Data were collected by means of a self-administered questionnaire with closed-ended questions from 100 respondents. The application of descriptive statistics was conducted through IBM SPSS version 27 to analyse data collected. The results of this study revealed that small business owners (formal and informal) in the retail and service sectors in Sharpeville do not make use of budgets as part of their business practice. The main reason for small business owners to not make use of budgets was because the small business owners lack proper knowledge on how to prepare budgets. The findings in this study fill the knowledge gap with regards to the use of budgets by small businesses in the retail and service sectors operating the township of Sharpeville. The findings will make the small business owners aware that budgets are important accounting tools for business and that all business types, including small businesses, can implement budgets as part of their business practice.Item The application of management accounting principles in the Emfuleni local municipality minibus taxi industry(Vaal University of Technology, 2022-09) Mukhodeni, Mbobo Muthige; Robbetze, N.; Beneke, J. D., Dr.The minibus taxi industry in South Africa is one of the biggest, fastest growing, and riskiest industries in the world. The minibus taxi industry contributes to the economy by creating over 600,000 jobs, providing fast and cheap transport and fighting poverty and unemployment. However, the recent COVID 19 pandemia restrictions has caused a sudden and movement of economic growth and competition has forced the minibus taxi industry to be competitive in all aspects. This has resulted in intense competition for minibus taxi owners. Minibus taxi owners are constantly in rivalry amongst themselves and with other public road transport providers. In early 1988, the minibus taxi industry started seeing an influx in the number of new minibus taxis and minibus owners. This influx created problems of competition within the industry and among minibus taxi owners. Due to the importance of this industry, this research study investigated whether minibus taxi owners in the Emfuleni Local Municipality apply selected management accounting principles in the management of their minibus taxi businesses. Selected management accounting principles in this study refers to cost volume profit analysis, cost structure, and budgeting. This research study followed a quantitative research design and a questionnaire was used to collect primary data from a census of 500 minibus taxi owners from the following five associations: Get Ahead Taxi Association (GATA), Vaal National Taxi Association (VNTA), Vanderbijlpark Taxi Association (VTA), Sharpeville to Vereeniging and Vanderbijlpark Taxi Association (SVVTA) and Civic Centre Taxi Association (CCTA) operating in the Emfuleni Local Municipality. Using descriptive statistical analysis to present the findings, the study used Statistical Package for Social Sciences Version 27. Findings obtained using an online questionnaire and printed questionnaire distributed revealed a lack of management accounting principles application among these minibus taxi owners. Furthermore, the minibus taxi owners do not apply cost volume profit analysis and most do not use budgets. However, it was found that some minibus taxi owners apply very basic cash budgeting through a pen-on-paper approach. It was also found that minibus taxi owners understand the application of cost structures. This research study recommends that minibus taxi owners should be offered training by skills sectors to apply the selected management accounting principles. The limitations of this research study included that the census was geogracial restrictions, level of education, and corona virus restrictions. Despite these limitations, the research study was able to fulfil its main objective by determining that majority of minibus taxi owners do not apply the selected management accounting principles.Item Budgetary planning and expenditure control processes at public Universities in Gauteng, South Africa(Vaal University of Technology, 2022-04) Marx, Magaretha; Maseko, Johannes, Dr.; Beneke, John, Dr.Efficient planning and effective budget and cost control are key to the financial survival of universities in South Africa. Given the #FeesMustFall, students and their parents, starting in 2018, no longer contribute to the development of new infrastructure, payroll expenditure, maintenance and other daily operational expenses of public universities in South Africa. A new funding model for higher education calls for even stricter planning and allocation of budgets to departments within an institution of higher education. Evenly important, stricter control over the actual spending of these allocated funds needs improved planning and implementation of more effective policies and procedures to answer to the needs of the post #FeesMustFall funding model. Public universities will then be even more greatly funded by taxpayer’s money via government grants. There is this constant factor of the current situation of the South African economy, which will always bring the need for best possible use of scarce resources of funds. To eliminate the abuse of funds and elements of corruption, internal control strategies and systematic automation of controls need to be employed and even more rigorously enforced. The current phenomenon of different political parties’ that interfere with autonomous public universities to use #FeesMustFall and free education as a political “play-ball” is in full swing. These political structures and unions will in all probability have a huge impact, largely on the principals and methods used to plan an annual budget and the procurement policies and procedures of operational needs and on the expenditure control in public universities in South Africa. This study investigates the budgetary planning processes and expenditure control in universities in Gauteng, South Africa. This research is done by means of a detailed empirical study of the budgeting processes, cost and expenditure control processes, procedures followed and the internal control mechanisms at some universities in Gauteng. The empirical study was conducted with public universities in Gauteng and applicable research online questionnaire were used to analyse. The primary objective of this empirical study was to investigate what budget model and budgetary processes and principles regarding decision making to allocate budgets to specific allocations in the budget. Furthermore, the research study investigated how cost management and expenditure are controlled and how internal control mechanisms are applied in higher education institutions that formed part of this study. This study investigated the manner in which the budgets for annual expenditure are planned and how the internal controls are employed to ensure effective control over expenditure at public universities in Gauteng, South Africa. This research is supported by a literature study into the role of higher education in South Africa, the different controlling bodies in South African Higher Education, funding of South African public universities, budgetary planning and earmarked spending, procurement and expenditure control and reporting by universities in South Africa.Item The application of cost accounting methods by the general engineering companies in Southern Gauteng(Vaal University of Technology, 2012-12) Sousa De Oliveira Fouché, Regina Maria; Pooe, R. I. D., Dr.; Ziemerink, J. E. E., Dr.General engineering is characterised by its ability to manufacture and service a number of diverse products. Companies that manufacture various products can only measure costs accurately by using a job-order costing system whereby costs such as material, labour and overheads can be recorded. General engineering companies in Southern Gauteng supply precision manufactured components and services to the petrochemical, mining and steel manufacturing industries. When submitting a tender to a prospective client, companies often rely on informal methods such as “hearsay benchmarking”. Traditional costing methods are often ignored. Due to the competitive environment as well as to ensure sustainability, companies have to ensure that their pricing structures are efficient. The review of literature and research seem to indicate that companies often neglect cost accounting and often use methods that are obsolete and no longer relevant to the changing manufacturing environment. The main objective of this study was to explore the extent to which general engineering companies in Southern Gauteng are employing cost accounting methods. The study focused on the current methods and their relevance and effectiveness in providing the information required by the users to maintain a competitive edge in the market and still conduct a sustainable business. The research was conducted on the general engineering companies within Gauteng South. A literature study on cost accounting methods was undertaken, focusing primarily on cost accounting methods used by engineering companies involved in the manufacturing and servicing of diverse products. The empirical study was carried out in two phases: • A case study on a reputable general engineering company. • A survey was done on the cost accounting methods used by other general engineering companies. The study adopted a quantitative approach. The case study was used as a benchmark to draw up the structured questionnaire that was used to survey 91 general engineering companies that were selected using purposive sampling. The questionnaire embodied four sections; A, B, C and D. Section A requested general information and the demographic profile of the respondents. Section B invited views on cost accounting methods applicable to the general engineering environment. Section C gathered information regarding cost accounting methods currently used in the company. Section D examined the relevance and effectiveness of costing methods in decision making. Questionnaires were delivered by hand to owners and managers who are responsible for the costing methods at the designated general engineering companies. The study found that the respondents had a good understanding of the costing methods applicable to the general engineering environment. Although respondents had a good understanding of costing methods, the implementation thereof at their organisations was still wanting in some areas. Significant differences between companies’ views on costing methods their relevance and effectiveness and the methods they currently use were found. When companies were categorised according to their turnover it was evident that turnover did play role in the companies’ views on costing methods and their relevance and effectiveness in decision making. Those with a higher turnover had relatively more costing methods and systems in place.Item An analysis of the relationship between working capital management and financial performance of JSE-listed construction companies in South Africa(Vaal University of Technology, 2021-11) Sejake, Letshaba Abiel; Maseko, G. J., Dr.; Beneke, J. D., Dr.Working capital management is an important aspect in the business in order to meet its daily activities. Permanent working capital, temporary working capital, gross working capital and net working capital are four types of working capital. The construction industry, as compared to any other industry, plays an important role in the economic growth of the country. The construction industry is regarded as the largest employer in the labour market and appropriate management of liquidity is essential. Construction contracts are divided into lump sum contracts, unit price contracts and cost plus a fee contracts and have the following role players: employer, employer’s representative, professional team, contractor, sub-contractor and adjudicator. This study analysed the relationship between working capital management and financial performance of JSE listed construction companies during the period 2009-2019. Annual financial statements, which included statement of financial position and statement of financial performance of all listed construction companies during the period 2009-2019 were extracted from the external database (IRESS) to obtain the data needed for statistical analysis. This study used a quantitative research method to analyse the relationship between working capital management and financial performance. Multiple linear regression and correlation analysis were used in this study with inventory conversion period (ICP), average collection period (ACP) and average payment period (APP) as independent variables and return on assets (ROA), return on equity (ROE) and gross operating profit (GOP) as dependent variables, in order to analyse the relationship between working capital management and financial performance of JSE-listed construction companies during the period 2009-2019. Results of this study indicated that working capital management has little or no influence on the financial performance of JSE-listed construction companies, therefore, this indicates that listed construction companies in South Africa need to manage their working capital properly by putting some new policies in place on their accounts payables and receivables, in order to have a relationship between working capital management and financial performance.Item An Analysis: wealth creation by the industrial companies listed on the Johannesburg stock exchange of South Africa, 2005 - 2014(2018-10) Oke, Oji Okpusa; Mudhombo, I.; Beneke, JohnNumerous studies have been conducted to ascertain factors that impact on wealth creation of companies. It has been suggested by various researchers that economic value added (EVA) could be used to measure company wealth creation and a number of factors have been suggested that contribute to wealth creation for company shareholders. The purpose of this study is to determine the company characteristics that influence wealth creation. The study uses EVA, the dependent variable, as a measure of a company’s wealth creation. The company characteristics, independent variables, are operating capital size, capital gearing, export and domestic distribution market segments, sub-sectors and the type of product companies release into the market. Identifying company characteristics that influence wealth creation could enlighten investors on where capital should be directed in order to maximise wealth creation for the companies’ shareholders and the entire economy. Logistic regression analysis models were used to analyse 61 industrial companies listed on the Johannesburg Stock exchange (JSE) for the 10-year period of 2005 to 2014. The use of logistic regression for this analysis was necessitated by the binary nature of the data (EVA positive or negative) and logistic regression analysis is suitable for such binary data. A series of tests were conducted to assess the suitability of logistic regression analysis in evaluating the impact of company characteristics on EVA. The classification accuracy test, which shows the predictive accuracy or the forecast strength of the logistic regression model for this study yielded a forecast strength of the highest of 97.2 percent for 2006 and lowest of 63.2 percent for 2014. The results indicated the appropriateness of the logistic regression model for the study. The data on the EVA of companies were collected from INET-BFA. Other sets of data also obtained from INET-BFA include companies’ volume of operating capital, capital gearing, company product types, distribution channels and sub-sectors to which each company belongs. The historical inflation and exchange rates were also obtained and applied in comparing with EVA. The comparison was to determine if there was any relationship between EVA, exchange rates and inflation. Results of the logistic regression analysis model reveal that the sub-sector factor, capital size factor and capital gearing factor impact on EVA, while market segment and company product type do not impact on EVA. The results show that the sub-sector categories of manufacturing, retail and extraction have significant positive impact on EVA while property management does not impact on EVA. The large capital category of the capital size factor shows significant positive impact on EVA while the medium capital category shows a negative impact on EVA, leaving small capital size having no impact on EVA. The high as well as moderate capital gearing categories of the capital gearing factor show negative impact on EVA, while low gearing shows no impact on EVA. However, some years covered in the study did not have any significant factors. Results of wealth creation evaluation of the industrial companies using EVA as a metric reveals that the industrial companies created more value than was destroyed in terms of EVA. The results show that manufacturing, extraction and retail sub-sectors achieved net positive EVA, while the property management sub-sector achieved net EVA negative in the 10-year period. Furthermore, results of EVA comparison with foreign exchange and inflation rates indicated a relationship between EVA, exchange rate and rate of inflation. The results show that as inflation rises, foreign exchange depreciates, while EVA performance of companies drops during the same period. Findings and recommendations of this study are important to company managers as they offer crucial information regarding the types of activities organisations could engage in and for investors to consider the types of businesses in which to invest. The findings are also important in suggesting how companies could organise their capital structure as well as the size of the capital in order to optimise wealth creation. Such considerations by company managers and investors alike would help to increase wealth creation within the economic system. This study made use of five company characteristics, which were stated into various categories. Additional company characteristics should be used in a further study to identify other company attributes that may impact on EVA. There is also the need to carry out further studies using other methods to find out if different results could be achieved. In addition, a study is recommended to establish why no significant factor was identified in some of the years.Item Management of finances in the implementation of infrastructure development programmes in the Limpopo Provincial Government(2018) Semenya, Portia Annah; Beneke, J.D.; Ziemerink, J.E.E.The provision of infrastructure delivery programmes in Limpopo province is an important agent in the reduction of poverty, unemployment and strengthening of social capital. The infrastructure development programmes create opportunities for job creation through approaches such as maintenance of existing infrastructure in order to retain resources in the local areas. However, the provision of basic infrastructure still faces serious challenges, notwithstanding the fact that the PFMA and Treasury Regulations (issued by the National Treasury in terms of Section 76 of the PFMA) provide for control measures government has put in place for effective and efficient service delivery in general. The objective of this study was to scrutinise management of finances in the planning, implementation and monitoring of infrastructure programmes and further seek to propose measures to strengthen financial management controls in the implementation of infrastructure programmes to bolster service delivery in the Limpopo province. The literature reviewed indicated that successful implementation of infrastructure development in the province depends on skills and knowledge of the players and financial resources. This study used qualitative research methodology in examining the management of finances in the planning, implementation and monitoring of infrastructure programmes in the Limpopo provincial government. An open-ended questionnaire was used to collect data from the participants. The researcher utilised purposive selection method to obtain information from relevant participants who are directly involved in infrastructure management. The study revealed that Limpopo government departments do not utilise capital budgeting models to appropriately plan and fund infrastructure projects. There are challenges, including procurement processes, lack of appropriate skills to monitor and implement infrastructure projects and lack of standard operating procedures to encourage a culture of uniformity, responsibility and accountability in the processing of payments.Item The effect of working capital management on the profitability of small retail businesses within the Emfuleni local municipality(Vaal University of Technology, 2016-11) Koloko, Mapolo Belina; Dhurup, M., Prof.; Okubena, O., DrManaging cash flow and cash conversion cycle is a crucial component of the overall financial management within businesses, particularly small businesses. A business is required to maintain a balance between its liquidity and profitability while conducting its day-to-day operations. Monitoring of cash as an indicator of financial health is important in the view of its crucial role within businesses. This requires a business to run an effective working capital management efficiently and profitably. Hence, efficient working capital management includes decisions on how much to invest in customers, inventory and accounts receivable, and the extent of credit to accept from suppliers. The purpose of the study was to examine the effect of working capital management on the profitability of small retail business with the Emfuleni Local Municipality. Three variables were used as a measure of working capital management, namely the number of days inventory on hand, number of days accounts payable, number of days account receivable. The return on assets was used to measure profitability. The study adopted the quantitative research approach using a structured questionnaire. A non-probability purposive sampling method was followed, where a total of 222 questionnaires were analysed. Spearman’s correlation analysis was conducted to examine the linear relationship between working capital management and the rate of return on assets. The results indicated that the period it takes the business to collect money from its customers impacts on the period it takes to pay the suppliers. A weak correlation was also reported between the number of days accounts are payable and the cash conversion cycle. Strong correlations also exist between day’s accounts receivable and the cash conversion cycle and days inventory on hand with the cash conversion cycle. Regression analysis results show that days account receivables have made the largest impact on return on assets. Small businesses may have to decrease the cash conversion cycle in order to help maintain value within the business. The number of days for accounts receivable should be reduced to a reasonable period (shorter than the creditor’s payment period). Small businesses may consider shortening the number of days inventory is held within the business, as this also will decrease the cost of obsolete stock.Item The application of budgeting process in public secondary schools in Gauteng South Region(2013-04) Radebe, Lizzie ZanyiweA budget is an action plan that is utilized by organisations, private or public, in order to attain their objectives. Budgets are used to ensure better financial performance for organizations. They are also used to identify financial problems and take appropriate corrective measures. Public secondary schools also prepare their budgets to plan for their income and expenditure. It is through developing their budgets that public secondary schools are able to achieve their visions and missions. The purpose of the study is to evaluate the extent to which the budgeting process is effectively implemented in public secondary schools in the Gauteng South Region. To achieve this objective a questionnaire was developed to elicit responses from the participants in the research. The questionnaire was a closed-ended one with two sections, A and B. Section A of the questionnaire was developed to gather biographical information about the units of analysis, whereas Section B dealt with key issues pertaining to the budgeting process. The reliability of the questionnaire was tested through Cronbach’s alpha coefficient. The feedback from the questionnaire was analysed by means of Exploratory Factor Analysis where five factors were extracted and their reliability also tested. The factor loading matrix was computed to identify appropriate items for each factor. The items were analysed using frequencies in respect of each factor. Correlations analysis for the factors was conducted to determine the relationship between them. The findings from the study indicate that: budget planning assists school managers in comparing income and expenditure; coordination of budgeting activities is a problem at schools; lack of communication stifles effective implementation of the budget; there is no effective training and development for those involved in the budgeting process; the financial targets are not set and communicated to key stakeholders; there is lack of budget control and monitoring measures of variances of the planned and actual budget is non-existent; educators are not offered the opportunity to participate in the budgeting process let alone have the authority to make decisions on budgetary issues for those who are involved. The value of this research lies in setting appropriate guidelines for effective implementation of the budgeting process. Effective implementation of the budgeting process will facilitate efficient delivery of quality education to learners. The importance of the study is that it offers various types of budgets that public secondary schools can use to remain financially viable and sustainable.Item A comparative analysis of the effective use of transfer pricing policies in multinational manufacturing corporations in Southern Gauteng(2016-04) Siewe, Constantain Lendeu; Ziemerink, J. E. E.; Beneke, J. D.This study was undertaken to assess the extent to which transfer pricing was effectively used by multinational manufacturing companies operating in the Southern Gauteng region of South Africa. The target participants of the study traded their products across international borders and as such made use of transfer pricing in one way or the other to achieve strategic objectives. Scant research has been undertaken to analyse the degree to which transfer pricing can be used to effectively influence managerial performance. On the other hand there is a wealth of knowledge on the relationship between transfer pricing and taxation. In-depth review of literature showed that even though multinationals formulated their transfer pricing policies to target financial and managerial objectives, self-interest and outside influences tended to hinder the equitable realization of both types of objectives. The study therefore set out to establish whether this is true of Multinational corporations (MNCs) in Southern Gauteng and in the process answer questions about the procedure for formulating transfer pricing policies by these MNCs, the relationship, if any, between transfer pricing and profitability and the use of transfer pricing for performance enhancement and assessment. The study made use of a mixed methods research methodology to collect and analyze data from 45 MNCs operating in the target geographical area. Of the 45 companies, 15 cooperated fully with the study. Data was collected via the use of questionnaires and follow-up face-to-face and/or telephonic interviews. Collected data was analysed using statistical methods including the Chi Square Test, standard deviation, frequency tables and the Kruskal-Wallis H test. The results from the questionnaire and interviews show that there is no universally appropriate Transfer Pricing Policies(TPP) which applies equally to all organizations in all circumstances. Firms are affected by different environmental factors while striving for tax-compliance and value creation. The fear of falling on the wrong side of tax laws is a major driving force behind transfer pricing policies of MNCs. As such other objectives that are managerial in nature become secondary and tend to be neglected if/when they conflict with the primary objective.Item An analysis of capital structures of listed industrial companies in South Africa(2016-08) Popoola, Babatunde Adedeji; Beneke, J. D.; Ziemerink, J. E. E.This study examines the capital structure theories, specifically the trade-off theory and the pecking order theory. It also analyses the influence of the capital structures choice among 72 listed industrial companies on the Johannesburg Stock Exchange ltd (JSE) in South Africa from 2005-2013 to determine whether these firms follow the trade-off theory or the peckingorder theory. The external database (INET BFA) was used to obtain the data needed for the statistical analysis. From the database, annual standardised financial statements, statement of comprehensive income, cash flow statements, financial ratios, statement of change in equity and the retained earnings to debt ratio of all the listed industrial companies in South Africa from 2005- 2013 were extracted in order to enable the conducted research. A multiple regression and correlation analysis were carried out the with leverage ratio (trade-off theory) and the retained earnings to debt ratio (pecking order theory) as the independent variables and share price as the dependent variable, in order to examine which of the two theories is closely related to share prices in South Africa. Furthermore, a multiple regression and correlation analysis was also done with common shares issued, retained earnings, long-term debt and weighted average cost of capital as the independent variables and share price as dependent variable, to determine if there is a relationship between the capital structure and share prices of the listed industrial company. The results indicated that there were little or no influence of capital structure theory on share prices, the financing practices and the performance of listed companies in South Africa. This indicated that industrial companies in South Africa rarely practice capital structure in accordance with the capital structure theories. Moreover, retained earnings and long-term debt have a positive influence on the performance of listed industrial companies in South Africa from 2005-2013.Item A constructive analysis of safety control mechanisms and production costs at a coal mine(2016) Mokoena, Mothemba Cecilia; Oberholzer, Merwe; Joubert, DeidreStatistics in South Africa show that the fatality and injury rates within the mining industry have dropped since the end of the apartheid era. Regardless of the drop the fact remains that the mine workers, who are often the breadwinners, are still dying in the country’s mines leaving their families behind without any source of income. If they do not die they may suffer crippling injuries due to mine accidents making it impossible for them to perform their daily duties at work which results in the loss of income, loss of quality of life and this produces a humanitarian and a socio-economic problem. Mining companies incur enormous costs due to fatalities and injuries. Hence a target for zero fatalities was set in the mining industry for 2013. However, the industry has failed to reach this target that it set for itself and it is therefore of the utmost importance to encourage mining companies to invest more than they do currently in safety in order to prevent these fatal and crippling injuries due to mine accidents. The purpose of this study was to determine whether or not the requirements of safety legislation are observed and complied with by a single Colliery in South Africa that was selected for this study. The study also sought to investigate whether or not the employees of this mine observe the safety regulations to ensure safety and to maintain an accident free working environment. An analysis of organizational safety control mechanisms and production cost was conducted through the use of a structured questionnaire, completed by 151 participants. Descriptive statistics, frequency tables, exploratory factor analysis (EFA), one-way analysis of variance (ANOVA) and t-test were utilized to analyse the data. The results indicate that the Colliery was compliant with the safety legislations, a positive employee safety attitude had been cultivated and there was provision of adequate safety facilities through safety investments. Cost reduction due to the application of safety controls was also established, yet it was found necessary for the Colliery to enforce and encourage the application of safety measures to reduce the costs that are still incurred as it is evident that the application of safety controls results in reduced costs. Although the Colliery was considered compliant, with its employees showing a positive attitude towards safety controls, and with safety investments made and cost reduction achieved due to safety measures, ANOVA revealed different perceptions based on the departments in which the employees work, years of experience, English proficiency and qualifications. However, no differences were found in relation to gender and designation.