Shaping tomorrow’s financial leaders today Annual Report 2009
02 Introduction 04 Chairman’s Statement 06 BIBF Vision 07 Board of Directors 08 Director’s Report 10 Management Team 14 Trends and growth potential 16 Review and highlights 19 Strategic Objectives 29 Centre Reports 32 Quality Assurance Department 33 Marketing and Communications Department
34 Research Department 35 Special Projects 37 BIBF Team 40 BIBF Guest Speakers / Lecturers 2009 41 Participating Organisations 44 Glossary 46 Independent Auditors’ Report 48 Statement of financial position 49 Statement of comprehensive income 50 Statement of changes in fund balance 51 Statement of cash flows 52 Notes to the financial statements
His Royal Highness Prince Khalifa bin Salman Al Khalifa The Prime Minister of the Kingdom of Bahrain
His Majesty King Hamad bin Isa Al Khalifa The King of the Kingdom of Bahrain
His Royal Highness Prince Salman bin Hamad Al Khalifa The Crown Prince & Deputy Supreme Commander of the Kingdom of Bahrain
The Bahrain Institute of Banking and Finance (BIBF) has played a critical role in Bahrain’s long-term success as the region’s leading financial centre. Since its inception in 1981, BIBF has been committed to providing the highest levels of training, education and professional development programmes to the financial services industry in the Kingdom of Bahrain and the region. Our breadth of training, education and professional development programmes includes Accounting; Banking; Finance; Insurance; Islamic Finance; IT; Management and Leadership expertise. BIBF also provides Academic qualifications and Executive level development. Clients range from banking professionals to private corporate clients to ministries, chambers of commerce, world class oil companies and manufacturing companies of differing sizes. BIBF provides of an extensive range of internationally recognised professional qualifications. These include the CIA, CPA, and CMA within the Centre for Accounting; ACAMS, ACI, CFA, and PRM within the Centre for Banking, Arabic PIC and accreditation with the Chartered Insurance Institute (UK) within the Centre of Insurance; accreditation with the Chartered Institute of Marketing (CIM), the Chartered Management Institute with its Tamkeen Leadership Skills programme as well as professional qualifications in CPP and CTP via CIPD.
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BIBF has strong Academic partnerships with highly renowned universities including the highly accredited MBA and MSc programmes in Public Administration and Human Resource Management from De Paul University USA, as well as the Darden Leadership Development Programme (in collaboration with the Institute of Bankers, KSA) and the University of Cambridge International Diploma in Management. BIBF provides an Assessment Centre of which its services are provided in partnership with global agencies and include English Placement testing, Training Needs Analysis, Personality Assessments, Leadership Styles and Team Efficiency Evaluations, Competency Based Interviewing, Career Guidance, and Executive Coaching. BIBF is a multi-lingual, multi-cultural organisation with a world class faculty, most of whom hold internationally recognised professional and academic qualifications, combined with extensive market experience. We are committed to hiring, developing and enhancing the careers of Bahraini nationals, both our course participants and our staff. We have an impressive 78% Bahrainis on staff and management.
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Chairman’s Statement
On behalf of the Specific Council for Vocational Training (Banking Sector), I am pleased to present the Annual Report and Audited Financial Statements of the Bahrain Institute of Banking and Finance (BIBF) for the year ending 31st December 2009.
H.E. Mr. Rasheed Mohammed Al Maraj Chairman of the Specific Council for Vocational Training (Banking Sector)
The Council met three times during the year to review all the operational aspects of BIBF. The Council contribution is wide ranging, extending from supplying insight, feedback and approval of both strategic deliverables and the financial mix, to reviewing all tactical activity and monitoring the progress and direction of the Institute. Since its inception, BIBF has played a leading role in the professional development of the Bahrain market. Since its early days of focus on Banking and Insurance to todays breadth of offerings across Academic and Executive development, Islamic Finance and the non-financial but equally important Leadership and Management learning, BIBF has remained true to its purpose. BIBF continues to remain focused on its vision of being the Institute of choice for professional development and deepening Bahrain’s strength in human capital in supporting the growth of the financial services sector. The Council of 2009 noted that BIBF’s achievements have certainly reinforced this resolve.
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BIBF has two clear areas of focus, firstly ensuring the human capital of Bahrain grows via professional development, and secondly, instigating this through its ability to obtain international partnerships that give that extra quality and global approach to education. This is of course a win-win-win situation: the people of Bahrain win, the partnerships grow the BIBF reputation, and the partners themselves experience the benefit of being a part of the regions financial hub. We recognise the continued support of the many affiliate partners at BIBF and welcome the new ones, specifically the Association of Certified Anti-Money Laundering Specialists (US); the International Compliance Association (US); and the Chartered Institute of Personnel and Development (UK). While our Director Mr. Garry Muriwai will cover the more specific highlights of the 2009 year, there are three highlights in particular I would like to mention. Firstly, the global financial crisis impacted us all; however, as well documented in the media, Bahrain dealt with and managed the adversity particularly well. As Governor of the CBB and Chairman of BIBF, I am better placed than many to see both the supply and demand side of how the crisis affected BIBF. As our member organisations
The 2009 Financial crisis affected us all. BIBF dealt with the market forces and impact on participant numbers better than most. It is a credit to both the history of BIBF and the support of both staff and members that we were able to weather the financial storm well. streamlined their processes and carefully reviewed their strategies, human capital development, while never neglected, was in the short term removed from the strategic “must-do” especially in the areas of high cost specialised training. I was pleased that the flexibility of BIBF allowed our members to take full advantage of BIBF’s morning courses. This achieved two significant outcomes. It allowed organisations to ensure staff development continued and achieved with little additional impact on their financial bottom line; and also showed BIBF’s flexibility in being able to adjust its approach to training and development to reflect the market demands. This meant BIBF was able to achieve a comparable net financial performance as 2008 Secondly, the BIBF Islamic Finance Centre won the CPI Financial global award for Best Training Institute in Islamic Finance for the second year in succession. To have received this award for the second year in a row is an acknowledgement of BIBF (Islamic Finance) not only in investing intellectual and monetary resources in Islamic Finance Education, but
their continued innovation in delivering Islamic Finance solutions,” Last but not least, the launch of the Assessment Centre under Leadership and Management was clearly designed to add value to all decision-makers in organisational recruitment. BIBF has ensured that organisations can now have the full spectrum of tools taught locally which filters down into improved recruiting decisions. Ultimately this creates a harmonious environment for both the business sector and the employees within it. In closing, BIBF is honoured to have been encouraged by the support and vision of His Majesty, King Hamad bin Isa Al-Khalifa, His Royal Highness, Prince Khalifa bin Salman Al-Khalifa and His Royal Highness, The Crown Prince of the Kingdom of Bahrain and Deputy Supreme Commander, Prince Salman bin Hamad Al Khalifa. I, on behalf of the BIBF, thank them for their invaluable patronage and guidance. I also extend my gratitude to my colleagues on the Specific Council for their insight and support. BIBF’s success in 2009 could not have been
achieved without the support of all the member organisations. Whether in their commitment to professional development of their staff or as direct learning support for the many students who come through the doors and halls of BIBF, their contribution to excellence is recognised, not only to BIBF but to the development of Bahraini talent. Finally, on behalf of the Specific Council, I take this occasion to thank the Director and his staff at BIBF for their professionalism and dedication in the past year and I see this continuing into the future.
H.E. Rasheed Mohammed Al Maraj, Chairman
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Vision: BIBF is the institute of choice for the development of business professionals. Mission: Leadership through providing ongoing education for business professionals.
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Board of Directors
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1 H.E. Rasheed Mohammed Al Maraj Governor; Central Bank of Bahrain 2 Mr. Adnan Yousef Chief Executive Officer; Albaraka Banking Group 3 Mr. Garry Long Chief Operating Officer; Investcorp Bank 4 Mr. Ibrahim Al Qassab Chairman of Bankers’ Union; General Federation for Bahrain Workers 5 Mr. Jean-Christophe Durand Head of Territory; BNP Paribas 6 Mr. Murad Ali Murad Chairman; Bank of Bahrain & Kuwait 7 Mr. Redha Ahmed Hubail Assistant Undersecretary for Training; Ministry of Labour 8 Mr. Takuya Furuya President; Nomura Investment Banking 9 Mr. Yassir Al Baharna Chief Executive Officer; Arab Insurance Group 10 Mr. Garry Muriwai Director; BIBF
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Director’s Report
The BIBF over-arching strategy has been to ensure that we fully support Vision 2030 and the development of the economy and the people of Bahrain.
Garry Muriwai Director
Once again we have looked outward, both nationally and internationally, to see how BIBF can best serve the financial sector. This has led to new programmes and services, reviewing and redeveloping our existing programmes, a number of new alliances and an increased number of courses for our member organisations. BIBF provided 33 new public and external offerings during 2009. We forged new or stronger partnerships including the Institute of Banking (Saudi Arabia) in development of the Leadership Programme; the Kuwait Institute of Banking Studies to provide BIBF three classroom-based insurance diplomas in Kuwait; the Waqf Fund and the new Graduate Sponsorship Programme; and the British Psychological Society which enabled international accreditation of two of our Assessment Centre programmes. Ties were also set up with various international organisations in the development of new or revised professional qualifications as well as diploma level qualifications BIBF has had another very successful year with over 15,000 participants on our programmes which has been achieved by providing a breadth of services to the financial sector that has no equal in the region. This includes assessment, coaching, consulting, tailor made courses, graduate development programmes, an international Leadership Development programme and
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distance learning programmes to complement our existing professional and academic programmes. It has been very pleasing to note that our member organisations have increased their attendance on BIBF public courses by 11%. We have continued to grow our staff during the year to support this increased usage. We have been successful in recruiting in the areas of Banking, Leadership and Management and Insurance. There is no doubt that the Global Financial Crisis affected BIBF. The effect was felt by many organisations decreasing their discretionary spend on fee paying external courses, which resulted in a small decrease in overall participation in 2009. This was not surprising given how many others in the sector performed in 2009. I am very pleased to report that for the second year BIBF Centre for Islamic Finance won the CPI Islamic Business and Finance Award for the “Best Training Institute” globally. It is appropriate that I take this opportunity to acknowledge the leadership of the Centre by Mahmood Al Shehabi. Research is another area that BIBF has developed this year with the setting up of the Research Department to support the development of research across centres. We have focused our research activities on research that supports the development of the financial sector and have been running workshops to develop our internal capability. I would like to thank all the CEOs and senior managers that I have visited this year for their time, ideas and support in ensuring
The Bahrain Institute of Banking & Finance (BIBF) continues to play a crucial role in supporting the financial sector of Bahrain. Our remit remains aiding the development of world class people for all the financial institutions in Bahrain. that BIBF provides the education and training to support Bahrain’s Vision 2030 and ensuring that BIBF remains the Institute of choice for the financial sector. Appreciation Our success is mainly attributed to the support we receive from our stake holders and business allies added to the continuous support from the Government of the Kingdom of Bahrain. This success would not have been possible without the guidance and encouragement of our Board of Directors represented by the Specific Council for Vocational Training (Banking Sector) headed by H.E. Mr. Rasheed Mohammed Al Maraj, Governor of the Central Bank of Bahrain. I would like to take this opportunity to thank all the members of BIBF staff as well as the Vocational Council and the many External partners and affiliates we have. Their commitment to BIBF was instrumental in ensuring the high standards we not only place on ourselves, but on our many and varied students and participants, boding well for both BIBF and our participants continued success in 2010 and beyond.
Total BIBF Offerings Summary 09
416048
08
445076
07
363415
06
Public Offerings
327824
Special Offerings
Total
Professional Qualifications External Programmes
213884
09
237111
08
205144
07
53% 24% 21% 2%
143455
06
Professional Qualifications 09
6324
08
8710
07
9045
06
10377
2008
External Programmes 09 08 07 06
75850 91016 54118
08 07 06
51%
Special Offerings
29%
Professional Qualifications 28% External Programmes 2%
66645 Special Offerings
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Public Offerings
119990 108239 95108 107347 Public Offerings 2009
I am looking forward to working with you all in the years ahead, and to the opportunities that this will bring to BIBF.
Mr. Garry Muriwai Director BIBF
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Management Team
Garry Muriwai Director
Hussain Ismail Deputy Director
B.Com - University of Auckland M.Com - University of Auckland Chartered Accountant (CA)
MBA - University of Durham Graduate Programme for Executives Carnegie Mellon University Executive Management Programme Columbia University Fellow Member of the Chartered Institute of Bankers (FCIB)
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Dr. Mohammed AlKhozai Head of Centre: Academic and Executive BA - University of Cairo MA - University of Leeds PhD - University of London Executive Management Programme Columbia University
Namasiku Liandu Head of Centre: Accounting and IT
Dr. Sat Paul Parashar Head of Centre: Banking
BSC (Hons) - Loughborough University MEd - Dundee University PGDip Educational Research (Professional), Stirling University Chartered Accountant (ACA)
M.Com - Delhi School of Economics PhD - University of Delhi
Husain Al Ajmi Assistant Director and Head of Centre: Insurance BSC - Insurance and Real Estate, Arkansas State University ACII - Associate of Chartered Insurance Institute GEDP Darden School of Business, University of Virginia BIID - Intermediate Insurance Diploma, BIBF BAID - Advanced Insurance Diploma, BIBF
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Management Team
Mahmood Al Sheahabi Head of Centre: Islamic Finance MBA - Strathclyde University DipBus - Al Hedaya Commercial School RSA II Certificate in Advanced Accounting
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Kadri Rizk Head of Centre: Leadership and Management Bachelor Degree in Management University of Helwan Diploma in Marketing LCCI Certified Assessor in Management Development & Occupation Testing CSHLD University of Surrey.
Khalid Almedfaie Operations Manager MBA - De Paul University DipEng - Blackpool College of Higher Education MCP, MCSA, MCSE, CCNA
Dr. Subhadra Ganguli Head of Quality Assurance
Ali Abdulla Zubari Finance Manager
PhD (Economics) University of California
MSF - De Paul University BSDP - BIBF TCMDP - BIBF
Chris Carston Marketing and Communications Manager BBS - Massey University
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BIBF has multiple Centres of Excellence across differing disciplines. As a part of our management responsibilities, each Head of Centre has undertaken a review of 2009 in regards to trends and growth opportunities as well as an overall snapshot of performance for the year. BIBF has a robust strategic planning process from which we work towards achievement of our existing five year strategic plan. Within the strategic plan BIBF has nine core objectives. For the purpose of the 2009 Annual Report, each Centre has reported on its performance directly against these strategic objectives. The over-arching themes that follow make reference to already well documented issues facing not only BIBF but the financial sector, specifically the financial crisis. BIBF is pleased to note that in light of the varied performances of our members, BIBF itself weathered the impacts particularly well. Whether numerically in regards to financial performance, participant numbers, number of offerings and number of attendance hours we either marginally declined versus 2008 or achieved parity. Two key differences to these general findings were the substantive increase in public programme numbers, and the positive assertions made by the Centres on growth opportunities.
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Trends and growth potential
Centre for Academic and Executive Expectations of increases in number of students and applicants to all our programmes; Forming a new partnership with an internationally accredited US University to replace our Bentley undergraduate programme. Centre for Accounting and Information Technology Increased use of our training and educational offerings by non-member organisations; Increased use of professional offerings in accounting; Innovative program development within the Centres Special Offerings; New partnerships with international professional organisations. Centre for Banking Our Public offerings remain the only relatively predictable product in its portfolio as these are primarily designed to meet training needs of our member organisations; Professional qualification programmes, external programmes and special programmes were, and will be, highly volatile and influenced by the business environment within the regional banking industry. Centre for Insurance Led by Bahrain, many countries in the region have given considerable emphasis on insurance regulations, thus ensuring a well-conceived future to the industry. For example: double-digit growth rates occurred last year throughout many of the GCC insurance markets; The introduction of Takaful business – insurance according to Islamic principles has emerged as an engine of growth. The CBB, for example has taken the lead in introducing minimum standards for representatives of insurance companies in Bahrain; With Takaful playing an important role in the region’s rapid growth in insurance businesses, the Centre is validating a focused Takaful Insurance Diploma;
The Motor Insurance Technician Certificate (MITC) programme; and Insurance Accounting and Finance Certificate (IAFC) programme are planned to be launched in the second half of 2010; Introducing programmes such as Anti Money Laundering and Corporate Governance for the insurance industry; and a certificate programme in Actuarial Science with external partners is being scoped; The launch of the Associate of Risk Management programme in Arabic in association with the American Institute of Chartered Property Casualty Underwriters (AICPCU) is being prepared for 2010; Ongoing promotion of its CII accredited professional qualifications – PIC and PID, which are Arabic distance learning programmes. Centre for Islamic Finance Extending its geographical reach to provide its services to the Commonwealth of Independent States (CIS countries), Africa, and the Far East; Diversification of its scope of work. For example increasing our involvement in consulting and research services for the Islamic banking industry; Offering the Advance Diploma in Islamic Finance in Arabic as well as the Sharia’a Auditing Diploma; Establishment of the Online Islamic Diploma. Centre for Leadership and Management Additional Accredited Qualifications with International bodies; Strengthening our partnerships in Bahrain with Tamkeen and BDO; Extending our unique programmes such as the Graduate Development programme to the private sector and Executive Secretaries Diploma for the Ministries; Significant value added opportunities for the Bahrain market through the BIBF Assessment and Development Centre.
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Review and highlights
Centre for Academic and Executive A year of mixed results for the Centre for Academic and Executive Education. We saw a combination of growth in academic intake and decline in the uptake of executive education. Our partnership with DePaul University witnessed an increase in number of applicants in the MBA, MSF, and the MSHR. The year also witnessed the introduction of the new Master of Science in Islamic Finance. Our University of Wales validated Diploma is an undergraduate degree of three years of study at BIBF with the fourth year completed at the Bangor University of Wales. Now in its sixth cohort, we are increasing in numbers annually. 2009 saw the final intake of students into the Bentley programme. Six classes graduated with a B.Sc. in Business Administration. We are proud to have offered such a programme and assisted in fulfilling ambitions of many young students in attaining a US Degree in Business. The international financial crisis heavily affected our expected performance in Executive Education. We cancelled a number of offerings due to low demand. Despite this, we are developing a new range of executive programmes in conjunction with international providers in order to mean the upward curve post crisis of executive education demands. December 2009 saw the launching of the new Leadership Development Programme (LDP) in an alliance with our sister Institute, the Institute of Banking in (IOB) in Riyadh and partnering with our long standing ally, the Darden Graduate School of Business of the University of Virginia. The inaugural programme was to commence in early 2010 with a Foundation week in Bahrain to be followed by a Leadership workshop in Riyadh. The final residential part of the programme was planned for late in March 2010 for a period of three weeks. The programme was revamped after 10 years of the very successful Gulf Executive Development Programme in order to meet the changing demands of market and participant expectations. Intake numbers were positive for the first intake.
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Internally, the Centre saw a minor change in its set up with the relocation of the Business English Programme to the Assessment Section of the Centre for Leadership and Management. Centre for Accounting and IT During 2009 the Centre delivered courses in Business Continuity Management, Business and Professional Ethics, Special Offerings in Information Technology and External Offerings in Accounting and Finance for the first time. The Centre developed eighteen new courses (13 in Accounting and Finance and five in Information Technology), for delivery during 2010. While our public offering participant hours increased by nearly 13%, 2009 saw a reduction of 10% in overall participant hours. This was largely due to a reduction in Special Offerings and a decline in Professional Offerings. We expect through the development of new courses and other strategic changes during 2009, a recovery in 2010. 2009 saw an addition of one full-time member to the Accounting and Finance faculty to strengthen the development and delivery of audit courses. A new country manager was appointed to focus on growing the professional courses provided through Morgan International. The Centres financial performance in 2009 was lower than 2008. As most participants on our programmes are sponsored by companies we can logically infer the economic downturn affected companies to some degree in regards to staff training and development. This ultimately reduced our planned revenue targets. Centre for Banking The performance of the Centre for Banking for 2009 was much lower than budgeted. The Centres expectation when setting the 2009 budget at the end of 2008 was for the sector to show in the second half of 2009 some signs of halting and perhaps mild recovery. This did not occur. Actual versus planned performance based on the aforementioned factors did, as expected, negatively affect External programmes and Professional qualification programmes like ACI, PRM, and CFA. From the Centres perspective the magnitude of the
external environment was felt in declines in numbers of the flagship BSDP programme. The correlation in reduced numbers was clear as bank and other organisations’ sponsorships of their staff substantially reduced. Bank nominations of Non-Bahraini‘s to our public offerings also substantially reduced, effecting the Centres Public offering participant hours, despite three new public offerings added during the year. The decrease in non-levy participants also added to reduction in public offering participant hours. The Centre however experienced an increase in uptake of Special offerings. The actual participant hours in Special offerings increased by 38% in 2009 compared to 2008. Centre for Insurance The Centre for Insurance grew significantly in the year 2009 compared to the previous year with all targeted objectives achieved. The centre successfully executed the training and examinations of CBB’s minimum qualifications initiative for life and general insurance agents. Over 500 candidates from across the region undertook CII’s Award in General Insurance and Award in Financial Planning courses followed by examinations. This initiative by the insurance regulator in Bahrain has attracted attention from other regulatory authorities in the region and the centre may soon be involved in taking these programmes beyond Bahrain. The centre established authorised examination centres in 11 countries in the region for its flagship Arabic distance learning programme – Professional Insurance Certificate (PIC), thus enabling over 1,200 candidates to undertake exams in their home countries. Successful completion of the enhanced PIC certification enables candidates to directly achieve CII’s Diploma in Insurance via accreditation of prior learning scheme, which is also CII’s second highest professional qualification. The numeric response to the PIC programme encouraged the soft launching of its Professional Insurance Diploma (PID) during the year that will enable successful candidates to achieve the prestigious ACII qualification from CII by year 2011.
The major regional projects executed in 2009 included an exclusive agreement with the Kuwait Institute of Banking Studies to provide BIBF’s three classroom-based insurance diplomas in Kuwait; signed strategic contracts with a number for companies in the region to deliver customised training programmes at their locations; and establishing a strategic relationship with the Arab Forum of Insurance Regulatory Commissions (AFIRC) as part of executing the Certified AFIRC Supervisor programme. Locally, we continued our initiatives including the Tamkeen sponsored Graduate Development Programme for 12 candidates; the Ministry of Labor Insurance Diploma Programme for another 12 candidates that included On-the-Job Learning programme at local insurance companies; and the HRD Fund ACII Programme for 30 candidates. The Centre also witnessed growth in its participation rates in public programmes; revamped five insurance diploma courses; revised the CII Takaful textbook in English and translated the same to Arabic in order to be ready for April 2010 CII exams. Of keynote significance we enhanced the BIBF relationship with CII to a more strategic level. We now are the largest partner in the Middle East. In light of the Centre growth, additional resource was added to the Centre in 2009 by the placement of a Business Development Manager. His significant professional insurance industry experience will aid the Centre for Insurance in meeting the growing demands of its customers across the region. Centre for Islamic Finance In 2009, the Centre retained its position as the ‘Best Islamic Finance Training Institution’ in the annual Islamic Business and Finance Awards in Dubai. The revenue of the Centre declined by 10 percent due to lower participant hours as compared to 2008. This was mainly due to the global economic downturn which had affected most business areas as a whole. We believe anecdotally, that most Islamic financial institutions tightened their budgets for high cost training, increased in-house training and increased the “free to levy” Public courses for their staff. This was the primary impact on the change in mix of demand for our Centre.
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Review and highlights
The declines in Special offerings and External offerings in (-50% and -42% respectively) were nearly offset by the growth in Public offerings and Professional qualifications (+54% and +25% respectively). Key 2009 developments and initiatives included: • Launch of the DePaul BIBF Masters in Science in Islamic Finance • Launch of the Wales Validated Islamic Finance Diploma • Establishment of the Waqf Fund Graduate Sponsorship Programme • Completion of the National Commercial Bank development programme on Islamic Finance and Sharia’a Auditing • Establishment of the Public Seminar Series on Islamic Finance Centre for Leadership and Management Five new Public Offering courses were introduced by the Centre due to market demand and feedback from Training Managers. The result of these additions contributed to the Public offering increase of 6% vs. 2008. In September 2009, the Assessment and Development Centre at BIBF was transformed with an additional range of services. This included Placement testing, Training Needs Analysis, Personality Assessments, Leadership Styles and Team Efficiency Evaluations, Competency Based Interviewing, Career Guidance, and Coaching. The Centre launched three new courses, of which two are accredited by the British Psychological Society, to support HR and Training professionals in Bahrain and the region. The objective was to raise awareness about the importance of psychometric tools in pre-training and post-training assessment.
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Our Business English Programme introduced a Foundation Level to compliment the needs of the market. This was designed as a preliminary to the four levels and provides a balance of skills development and graded language practice taking the learner to intermediate level. During the three BEP terms a total of 17 classes were conducted with a total of 342 students. After becoming a Corporate Partner of the Chartered Management Institute (CMI) UK in early 2008, the Centre for Leadership and Management ran the Leadership Skills Programme (an International Diploma in Management) which was sponsored by Tamkeen. This programme was for Bahraini business owners and upper level managers, using action-based training methodologies to allow them to develop and implement their management and leadership capabilities for improved productivity and success in the work place. 2009 saw the successful growth of the programme and to date, 35 candidates have successfully completed and graduated from the programme and a further 112 are enrolled and actively participating. In addition, the first three cohorts of the Certificate in Personnel Practice (CPP) and the first cohort of the Certificate in Training Practice (CTP) programmes of CIPD, UK successfully completed the course. The net result of this contributed to increase in Professional programme offerings by 70% vs. 2008.
Strategic Objective:
01 Ensure the profile of BIBF positions us as the institute of choice for business professional development.
In 2009 the BIBF Centres contributed Centre for Insurance to this objective by: • Being the only institution authorised Centre for Academic and Executive by CBB to conduct minimum standards qualification for • Ensuring that all courses were appointed life and general insurance delivered at a high standard and representatives; measured by actioning and applying learning’s from class assessments; • CII’s only strategic partner in the region offering fully accredited • Continuously improving the teaching professional insurance qualifications; and learning aspect of our courses, through reviews and modifications • Offering courses and programmes suggested by Moderators, External based on insurance industry Examiners and QA managers. requirement. Centre for Accounting and IT
Centre for Islamic Finance
• Ensuring that all courses were • Increasing the amount of available delivered at a sufficiently high courses for both external and standard to uphold the good public offerings including Islamic reputation currently enjoyed by the Economics for Bankers; Murabahah BIBF. This was achieved by enabling finance for retail; Istisna’ for retail; the lecturers to attend relevant Sharia’ for bankers; Islamic Credit both subject specifying and delivery Cards; Islamic Funds Management; methodology, continuing professional Real Estate Advisory; Islamic Mutual development courses and by class Funds; Economic Efficiency for Waqf observation, peer review, and analysis Products; and the ICMA Primary of participant feedback; Market Certificates. • Creating active liaisons with reputable international organisations, for example IIA (USA), ICAEW (UK) and BPP Learning Media to seek to provide the best there is; • Continually improving how we deliver courses in response to feedback from course participants and their organisations. This has included actions such as changing the financial statements used for delivering a given course as a result of feedback from participants.
01 Ensure the profile of BIBF positions us as the institute of choice for business professional development. Centre for Banking Creating new public offerings: • Project Appraisal and Financing • Economics for Bankers • Quantitative Methods for Risk Management Launching new external programmes: • Value Advisory - A New Toolkit for Corporate Bankers • Corporate Governance - Challenges and Best Practices • Global Financial Crisis - Surviving and Thriving Strategies for 2009 • Implementation of Basel-II (Pillar II) • Debt Restructuring • Investment Representatives Programme (Series-7) • Implementation of Basel-II (Pillar I) • Real Estate Investment • Counter party Risk Measurement and Management • Advanced Financial Modeling • Credit Risk Measurement and Management • Market Risk Measurement and Management • Forex online Trading
Offering new professional qualifications: • IDC-ICA, UK • ACAMS, USA • APRM, USA • A revamp of the BSDP qualification by revising study material and providing a pathway forward for BSDP participants to Newcastle University, UK to obtain a combination of international experiences and an undergraduate degree. Centre for Leadership and Management • Offering a variety of customised special offerings tailor made to Banks and organisations to fit their requirements and future plans and success of their businesses. These included Standard Chartered Bank, Khaleeji Commercial Bank, Yokogawa, BDO Jawad Habib, and APM Terminals.
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Strategic Objective:
02 To maintain proactive business partnerships with our levy payers and other clients to achieve successful results for both their organisations and the individuals within. In 2009 the BIBF Centres contributed Centre for Banking to this objective by: • Networking for proactive business Centre for Academic and Executive partnerships with our levy payers and other clients to achieve • Maintaining regular contact with successful results for both their training managers and discussing organisations and the individuals courses high demand in nature eg, within was regularly undertaken Corporate Governance. through meeting with training managers, bank professionals at Centre for Accounting and IT BIBF and during conferences. • Continually talking with training Centre for Insurance managers responding to their requests and seeking to meet them • Conducting regular visits to at their ‘point of training need’. local insurance organisations This included developing new in connection to their training Public Offerings in response to their requirements and offering assistance requests and as a proactive step to to relevant individuals for CII provide courses the Centre believed accreditation of prior learning as a was useful to them; value added service; • Approaching existing clients offering • Holding discussions with insurance them new courses in response to professionals in connection to feedback from the participants of launching new programmes and a recently delivered course. For revising existing ones; example during 2009 this resulted in two new special offerings to existing • Providing tailor made long-term clients; training programmes via mutual agreements. • Creating unique products for clients; either in response to a specific request or by analysis of course participant feedback. An example is a course delivered to one of our long standing clients in 2009 that was completely different from that delivered over the previous four / five years, as a result of assessing the comments made by participants.
02 To maintain proactive business partnerships with our levy payers and other clients to achieve successful results for both their organisations and the individuals within. Centre for Islamic Finance
Centre for Leadership and Management
• Conducting a number of direct contact • Introducing five new public offerings visits to the Islamic Financial Institutions to deliver upon market requirements. in Bahrain and Dubai. We utilised these These included: visits to meet functional Heads of HR or - Emotional Intelligence; Training and obtain feedback on existing - Problem Solving and Decision levels of service performance as well as Making Techniques; highlighting our new products. Client Human Resources Planning visits included Al Baraka Islamic Bank, Techniques; Gulf Finance House, Dubai Islamic Bank, Bahrain Islamic Bank, Ajman Islamic Bank, - HR Management for Non-HR Managers; and Noor Islamic Bank; - Employee Training and Development. • Facilitating various special offerings in • The Centre also regularly met with Bahrain, the Gulf, and Eastern Europe. member organisations and other clients Clients included National Commercial to discuss special offerings as updates Bank, Saudi Arabia; Abu Dhabi Islamic or new requests. Bank, UAE; Caspian International Investment Company, Azerbaijan; Commercial Bank of Qatar, Qatar; Islamic Development Bank, Saudi Arabia; Standard Chartered Bank, Bahrain; and Khaiji Bank, Qatar.
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Strategic Objective:
03 Build alliances with internationally recognised professional bodies.
In 2009 the BIBF Centres contributed to this objective by:
in-house accounting and finance courses;
Centre for Academic and Executive With Morgan International for the world class course materials for CPA • Maintaining our strategic alliances and CMA. with: - DePaul University Centre for Banking - Bentley University • Forming new alliances during the - University of Wales - Darden Graduate School of Business year with Newcastle University, UK; ACAMS, USA and ICA, UK; of the University of Virginia • Renewing alliances with professional • Whilst not new, we strengthened bodies like CFA, PRM, and ACI formally our ties with our sister which were also strengthened by Institute, the Institute of Banking achieving space on their web pages (IOB) in Riyadh in developing the as education partners. new Leadership Development Programme (LDP) in conjunction Centre for Insurance with Darden. • Maintaining and strengthening Centre for Accounting and IT our alliances with The Chartered Insurance Institute (UK) and The • Building alliances with the IIA (USA) American Institute for Chartered to offer their internal audit courses; Property Casualty Underwriters / With ICAEW (UK) to deliver their Insurance Institute of America (USA). Certificate in Accounting, Finance Centre for Leadership and and Business; Management With ACCA (UK) to deliver their • Maintaining and building upon Diploma in International Financial existing alliances with International Reporting; bodies such as CIPD, CMI and SHL. With ICDL GCC Foundation with the view to delivering ICDL courses from 2010; With BPP Learning Media to use their world class course materials for
Strategic Objective:
04 Ensure that all participants become BIBF ambassadors.
In 2009 the BIBF Centres contributed • Aiding trainees’ careers by helping to this objective by: them to get their CII credits as an ongoing support service. This service Centre for Academic and Executive has led us to gain newer clients via word of mouth from existing trainees • Receiving very positive feedback and graduates. about the quality of our students and other graduates who regularly Centre for Islamic Finance participate in the seminars, workshops and youth conferences • Delivering courses to the participants’ in Bahrain and globally. satisfaction. Centre for Accounting and IT • Delivering courses to the participants’ satisfaction. Centre for Banking • As a matter of practice, inviting all passing out participants of the public offerings, special offerings, professional qualification programmes and external programmes to stay in touch for any further assistance in their journey and application of knowledge; • Organising a BSDP Alumni meet to hear their views on strengthening the existing BSDP qualification. Centre for Insurance • Creating practical case studies that enable shadowing of actual work atmosphere. This aided relevant participants to become ready for employment with most minimum on-the-job training. This strategy has been promoted by our trainees at all levels;
Centre for Leadership and Management • Continuously following up on course evaluations to modify and action activity applicable to not only programme quality improvement, but in direct response to customer needs.
BIBF
|
Annual Report 2009
23
24
BIBF
|
Annual Report 2009
Strategic Objective:
05 Ensure that our programmes are recognised as world class.
In 2009 the BIBF Centres contributed Centre for Insurance to this objective by: • Producing CII qualifications for Centre for Academic and Executive Takaful (Islamic Insurance), which is now part of ACII level units; • Ensuring that our linkages with world class universities and institutes • Our class-room based insurance remained strong. Our partnerships diplomas (English and Arabic) earn are in place to ensure our graduates 210 credits from CII, the highest for not only have a place within any any institution in the region; relevant role within Bahrain but has a globally appealing undergraduate • Earning CII’s Diploma in Insurance certification via accreditation of prior or post graduate qualification. learning through our Arabic distance Centre for Accounting and IT learning programme, the Profession Insurance Certificate (PIC). • Making linkages with world class organisations in terms of Centre for Islamic Finance qualifications or course materials. • Receiving the internationally Centre for Banking acclaimed ‘Best Islamic Finance Training Institution’ award in the • Positioning our programmes annual Islamic Business and Finance through newspaper ads as world Awards for the second year running. class and adopting world class pedagogy and a high class faculty; Centre for Leadership and Management • Obtaining recognition as the EXCLUSIVE educational partners in • Providing accredited programmes Bahrain for leading International including Cambridge, CMI, CIPD professional bodies like Association and CIM. of Certified Anti-Money Laundering Specialists (ACAMS), USA and International Compliance Association (ICA), UK.
Strategic Objective:
06 Promote Bahrain’s position as a leading regional financial centre.
In 2009 the BIBF Centres contributed Centre for Insurance to this objective by: • Defining the Centre for Insurance Centre for Academic and Executive and its strong affiliations as the foremost insurance learning and • Using case study examples from the qualifications provider in the region. Bahrain market in teaching materials This has contributed to Bahrain’s and exams; position as a leading regional financial centre. • Promoting the Islamic Diploma and referencing Bahrain as a world Centre for Islamic Finance leader in Islamic Financial Products and Services. • The benefit of receiving the ‘Best Islamic Finance Training Institution’ Centre for Accounting and IT award reinforced the strength of Bahrain’s Islamic Finance education • Using examples from Bahrain in authority. This supports our drive course materials, including those to align where possible the 2030 delivered outside Bahrain, whenever vision in regards to financial sector possible. For example by using the expertise. TAIB analysis report of SABIC when delivering a course at Saudi Aramco; Centre for Leadership and Management • Making reference to the Bahrain Stock Exchange in appropriate • Delivering our products to new contexts, while delivering courses or markets (for the Centre) such developing course materials. as Qatar. This was a tailor made programme for high caliber Centre for Banking management trainees in the Central • Having every programme, Bank of Qatar over three phases in particularly public offerings different areas such as Leadership and professional qualification and Management, Banking, Finance programmes designed, launched and Islamic courses. A total of 22 and delivered with an express aim courses were successfully completed to contribute to promote Bahrain’s by the trainees. position as a leading regional financial centre; • Aiming to provide the latest knowledge and skills in every functional area of the banking industry, across all our public offerings, professional qualification programmes and external programmes.
BIBF | Annual Report 2009 25
26
BIBF
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Annual Report 2009
Strategic Objective:
07 Attract and retain the best staff.
In 2009 the BIBF Centres contributed Centre for Islamic Finance to this objective by: • Employing two international caliber Centre for Academic and Executive faculty members and an additional member within the Administrative • Retaining staff with international function to support the planned qualifications and local and growth in the Centres offerings. international experience. In 2009 our turnover was 0%. Retention has been near enough 100% in 2009. One faculty staff Centre for Accounting and IT member departed BIBF in 2009, with extended leave on medical grounds • Employing international caliber for the Head of Islamic Finance also staff with local experience in the occurring mid-year. In the interim, required areas. Retention has been the Centre was led by the Deputy near enough 100% in 2009. One Director; administrative staff member left the Centre, however there were no • Increasing the use of industry faculty departures. experts by the Centre. Centre for Banking Centre for Leadership and Management • Adding one new full-time faculty who came with excellent • Recruiting specialised and qualifications and significant experienced lecturers, and providing international banking experience. The them with a motivating package part-time faculty includes top notch as well as an opportunity to professionals with wide industry directly affect the human capital experience. It is worth mentioning development of all participants. that despite these persons having The breadth of programmes the other opportunities, they prefer to Centre offers also provides the scope continue teaching at BIBF. for significant staff professional development and teaching both Centre for Insurance locally and internationally. • Employing high caliber ACII certified training staff and industry experienced support team to provide its services.
Strategic Objective:
08 To expand the business scope of the institute, and sustain our competitive differentiation, through continuous innovation and improvement of products, services and resources – human, technological and physical. In 2009 the BIBF Centres contributed to this objective by: Centre for Academic and Executive • Continuously updating and reviewing the teaching and learning materials to meet international standards; • Identifying staff development needs annually and putting required plans in to place to achieve these development initiatives. Centre for Accounting and IT
least one public offering programme at BIBF. One of the faculty members obtained Trade Finance Specialist Certificate, another qualified CFA level –I and the third, Series-7 programme of the BIBF. Technological and infrastructural support is provided as required by each faculty. Centre for Insurance • Expanding its business development and customer service team during 2009 due to meeting increased demand from individual insurance personnel and companies for our programmes and services;
• Identifying the appropriate staff development needs during • Closely working with the industry to the annual review and putting launch six new programmes in 2010. appropriate plans in place to achieve their developmental needs; Centre for Islamic Finance • Continually improving our materials • Extending its geographical reach and and modes of delivery to meet our expanding its menu of products. course participants at their point The Centre for Islamic Finance has of need. This is done by updating extended its geographical reach by materials that have naturally having new clients in Qatar and the become out of date (for example CIS countries, specifically Azerbaijan. due to change in financial reporting We also launched the Masters of regulations or just the passage of Islamic Finance programme with time – eg, replacing old financial De Paul and the Wales Validated statements with more recent ones. Islamic Diploma. Centre for Banking • Ensuring the faculty is continuously encouraged to add new programmes and undertake self development. Most faculty members of the Banking Centre attended at
BIBF | Annual Report 2009 27
28
BIBF
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Annual Report 2009
Strategic Objective:
09 Provide infrastructure for effective and efficient operations.
In 2009 BIBF achieved the following: • The establishment of the Customer Service section that deals with all written (whether email, or online) participants’ feedback was a vital step towards supporting BIBF’s strategy in aligning its quality assurance framework to International standards. The Customer service area had additional registration staff placed whose role was to more directly interact with our members’ organisations. • In order to meet the growth in new participants, a parking zone which accommodates over 80 cars was provided by BIBF. The location immediately across from the front entrance reduced the level of concern of availability and proximity of parking to BIBF. • To meet growing demand staff were added to BIBF in 2009 necessitating the need for additional office space. A building extension was added as well as redesigning existing offices to meet staffing requirements.
• BIBF’s new online library system and students centre was made available to all members to browse the BIBF catalogue and library contents. • The BIBF registration department continued to visit member organisations, introducing the online registration system, which will aid the training managers in monitoring their employee progress.
Participant Hours 09 08 07 06
78590 Total
09 08
2208 1216
06
513
Centre for Accounting and IT
The mission of Academic and Executive Learning Centre is to provide world class programmes in the124802 area of Academic and Executive education via 132267 strategic partnerships with reputable and accredited 121765 international universities from the United States and the United Kingdom.
The Centre for Accounting and IT has been in existence as a stand-alone entity since January 2008. It delivers courses in Accounting, Finance and Information Technology to member organisations employees (Public Offerings), by specific request to any organisation (Special Offerings), for professional qualifications to all individuals (Professional Offerings), and of a specialist nature using external specialists (External Offerings). The Public Offerings can be attended by non-member organisation employees for payment of the appropriate course fee. This is what generates the revenue reported under public offerings.
The Centre offers academic programmes at undergraduate and post-graduate level, as well as executive education development for senior management.
762
07
Centre for Academic and Executive
External Courses 09
69723
08
53756
07
57790
06
Our Information Technology courses are in the main, standard Microsoft application courses. They are offered by a wide variety of competitors and appear price sensitive in customer decision making. Centre is diversifying its offerings in Information The 48559 Technology to cater for demand for courses in areas 53972 such48489 as ethics, business continuity management, 42188project management to the extent that these and are impacted upon by information technology.
Participant Hours
40489 Wales
09 08
09
315 1248
07
1782
06
486
31847
07
16398
09
07
1216
4896
07
7056
06
7488
Total
513
External Courses
External Courses
Wales
09
7104
08
06
2208
DePaul
69723
08
13869 38312 37523 26117
315
08
1248
07
1782
06
11999 9163
26% 9558 06 0% Professional Qualifications 56%
528
08
07 0
07
06 0
06
09
486
12322 16284
08
14314
07 09
33029
08
31847
07 06
08
4896
07
7056
06
7488
07 06 Public Offerings
25%
Professional Qualifications 1% 11% 6% 26% 0%
English 56% External Programmes
07 06
12322
60%
Special Offerings
25%
Professional Qualifications 14% External Programmes 1%
16284 2009
14314
Public Offerings
14125 Special Offerings
37523
06
60%
Special Offerings
9558
06
08
38312
07
9163
07
Public Offerings
Professional Qualifications 14% External Programmes 1%
11999
08
09
13869
08
6740
28969 09 528 External Courses
Bently 09
42188
Wales 25689 08 0 GMAT 25012 07 0 DePaul 18505 Bently 06 0
08
7104
53972 48489
09
Special Offerings 09
3497
48559
Total
16398
DePaul 09
14125
06 2009
Participant Hours
09
08 0
External Programmes
GMAT
English
6740
09 1% 08 11% 07 6%
09
40489 Wales
09
DePaul English
57790
06
GMAT Bently
53756
07
Bently
06
08
762
08
06
3497
07
09
07
08
08
78590 Total
33029
09
121765
06
09
09
Participant Hours
132267
07
GMAT
06
124802
08
26117 English
09
28969
08
25689 25012
07 2009
18505
06 Public Offerings
2009
BIBF
|
Annual Report 2009
29
Participant Hours 75326
09
Centre for Banking
Centre for Insurance
100644
08
96081
07
87885
06
The Centre for Banking is the leading provider of training and education services to banking and 29531 09 financial services industry in Bahrain, Qatar and 57539 08 Saudi Arabia. Our programmes are aimed at both 07 54934 organisations and individuals within the financial 40221 06 Professional Qualifications sector and range from entry level executives to top and senior level managers across all Banking 09 1413 functions and disciplines. 08 1170
The Centre for Insurance is dedicated to the advancement of insurance as a professional service in Bahrain and the broader Middle East region, providing world-class professional learning opportunities that improve insurance performance. We work closely with our customers to deliver tailor-made packages that help their staff achieve corporate goals. Whether our clients seek to improve the quality of their service or increase revenues, we can provide solutions.
Total
07
4251 5582
06
External Programmes
Participant Hours
The Centre for Insurance at BIBF is today, the largest specialised insurance training and professional qualifications provider in the Middle East. To underpin the many vital initiatives of the insurance regulators and to capitalise on the growing demand to qualify the insurance personnel in the region, BIBF and the UK based Chartered Insurance Institute (CII) have entered into strategic partnership towards adding professional advantage for insurance people.
11322
09
08 09 8185 07 08
75326 100644
10572
06 07 9611
96081
06 Special Offerings Total
09
87885 External Programmes
33060
08 09
29531 33750
07 08
57539
26324
06 07
54934
32471
06 Public Offerings
40221
2%
Public Offerings
44%
Special Offerings
15%
Professional Qualifications
39%
Professional Qualifications 09
1413
08
1170
07
4251
06
5582 External Programmes
09
11322
08
8185
07
10572
06
2009
9611 Special Offerings External Programmes
33060
09
33750
08
26324
07
32471
06
Public Offerings
2%
Public Offerings
44%
Special Offerings
15%
Professional Qualifications
39%
Commencing from the minimum standard qualifications, all of BIBF insurance certificate Participant Hours programmes, diploma programmes and 09 56747 professional qualifications fetch maximum number 08 39962 of accreditations from the CII, which is unique to 07 the Middle44283 East region. The centre’s professional 06 61708 activities have earned BIBF the membership of the Total Institute for Global Insurance Education (IGIE), 09 which is35073 an US-based association, comprised of 08 22569 selected independent international insurance 07 24090 institutes. 06 31083 Special Offerings
Participant Hours 21674
09 08
09
07
08
06
17393
56747
20193
39962
30625
07
Special Offerings 62% Public Offerings 38%
44283
Public 06 Offerings
61708
Total 09
35073
08
22569
07
24090
06
31083 Special Offerings
2009 09 08 07
21674 17393 20193
06
2009 Special Offerings 62% Public Offerings 38%
30625 Public Offerings
2009
30
BIBF
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Annual Report 2009
Participant Hours
Centre for Islamic Finance
09
Centre for Leadership and Management 59077
08
The Centre for Islamic Finance is the total solution provider for Islamic Finance learning in the region. The Centre has a comprehensive range of services that are superior, contemporary and relevant to the needs of the industry, all of which is drawn upon the support of the Central Bank of Bahrain, the Waqf Fund, the Islamic banking community, and the Islamic infrastructure institutions. The Centre focuses on the provision of professional courses and academic qualifications at the diploma, undergraduate, or post-graduate level that is delivered by a mix of the Centre’s own internal faculty or by our worldParticipant Hours wide industry experts. 51537
09
As the Islamic banking industry endeavours to 57409 resilience in the face of the global 24501 07 maintain its 22658 the stable growth of Islamic 06 financial crisis, Total finance training and education has continued 28558Being strategically located in 09 internationally. 22784 08 Bahrain, which is the hub of Islamic Banking, the 07 Centre 14396 has used this competitive advantage by 11024 06 establishing itself as a prominent contributor in Professional Qualifications the dissemination of Islamic finance knowledge 09 in 3058 the region. The strategic location, coupled 08 with5332the Centre’s access to Islamic Finance 3450 07 industry experts, has distinguished the Centre 06 as 3432 compared to other primary Islamic finance External Programmes learning providers within the MENA region, 09 South9994 East Asia, or the UK. 08
08 07 06
22781
2635
Participant Hours 5809
09 09 08 08 07 07 06 06 09
51537 9927
57409
6512
24501
4020
22658
2393 Total Public Offerings
08 07 06
23353 Public Offerings
59077 60822
34795 Total
09
Public Offerings
45%
Special Offerings
42%
External Programmes Professional Qualifications
28296
12% 1%
25015
08
14730
07
6102
06
4575 Professional Qualifications
09
563
08
0
07
128 2009
850
Special Offerings
19%
07
09
06
7139 21197 2507 6017 Special Offerings
09 08
26360 24895
07
19559
06
Public Offerings
45%
23353
Special Offerings
42%
External Programmes Professional Qualifications
5332 3450
12% 1%
3432 2009
9994 22781 2635 5809
9927
09
06
19559
Public Offerings
Special Offerings
07
26360
Participant24895 Hours
06
08
3058
08
08
07
19%
11024
09
06
07 09 06 08
56%
Professional Qualifications 6%
External Programmes
07
08
Public Offerings
Professional Qualifications 09
Special Offerings 09
External Programmes
22784
06
Professional Qualifications
We are focused on developing and improving human 09 563 resources to build individual and organisational 08 0 and efficiency. Leadership and Management 07 capability 128 courses are designed to improve competencies 850 06 by developing the knowledge, skills and attitude External Programmes We adopt a professional approach to 09 of people. 7139 08 Leadership 21197 and Management development by 2507 07 ensuring that a positive learning environment is 06 established 6017 and maintained in the classroom.
External Programmes
14396
07
At the Centre for Leadership and Management, we 34795 Total truly believe and practice the philosophy of “the of any organisation are its people”. 09 greatest assets 25015 08 Our belief 14730 is that Leadership is everyone’s business. 07 Our6102 objective is to add value in transferring classroom 06 learning 4575 to the workplace.
28558
08
28296
06
06
Special Offerings
60822
07
6512 4020 2393 Public Offerings
External Programmes
56%
Public Offerings
19%
Special Offerings
19%
2009
Professional Qualifications 6%
BIBF
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Annual Report 2009
31
Quality Assurance Department
The department, set up in 2008 to tackle the growth of BIBF in the upcoming years, created a set of codes of practice in several areas of academic quality benchmarked to the Quality Assurance Agency, UK. These codes of practice provide the framework for benchmarking current systems in BIBF against international standards and provide guidance for constant improvement. The department is also responsible for implementing code of practice for BIBF as a whole, organising academic infrastructure for the institute and maintaining all QA related committee structures in BIBF. The department conducts annual review of programmes in all centres and provides action plan and implementation timelines in agreement with the centres. The department is responsible for working with Centres and their international collaborators in seeking equivalence of BIBF systems with theirs and adopting BIBF systems, where applicable. The department is responsible for complying with all local and international QA authorities supervising BIBF in the area of Quality Assurance. The department lies at the heart of BIBF’s core business – learning and teaching. Academic QA is involved in everything that BIBF does to provide quality training and education for its clients and students. BIBF is the pioneering organisation in the region which has created a fully developed QA system benchmarked to international standards. It is also the only organisation which has started implementing such international best practices in most of the areas of learning and teaching. In this respect, BIBF enjoys an unparalleled position of competitive advantage over similar organisations in the region. This also means that BIBF is ready to create a consulting division for providing such guidance and advice to other organisations to help them develop international best practices and their implementation. Future growth of BIBF will enhance the important role of QA even further. The department’s role and importance will increase in the future as the importance of achieving high quality training and education seems to be a national agenda for the government of Bahrain through various organisations like
32
BIBF
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Annual Report 2009
Quality Assurance Agency for Education and Training (QAAET) and Ministry of Education (MOE). QA in BIBF will be actively working with Bahraini counterparts for complying with national regulations but nevertheless aim to continue with its annual review of programmes by an international panel of QA experts from around the globe. BIBF plans to invite participation from Bahrain’s QAAET and MOE in such initiatives to strengthen its ties with the local bodies. The annual review is important for BIBF’s self reflection and in evaluating its achievements against an international framework developed in-house on the one hand and for its international collaborators to value the important role of QA in BIBF on the other. The aim of BIBF to achieve Taught Degree Awarding Power Status (TDAP) will further enhance the role of QA as BIBF systems, benchmarked to international standards, will be ready and functioning at par with those of its partners for this purpose. By the end of 2009, QA became a fully developed department working with all centres of the organisation in implementing our codes of practice. A uniform brochure for all centres has been developed; work is in progress for achieving a uniform registration/ application form for the institute. Lesson plans, feedback mechanism, customer service functions, collaborative provision, faculty and staff development, recruitment and promotions process, programme review and design implementation, robust and rigorous assessment mechanisms etc have been initiated. Most importantly, annual review of all programmes has taken place in BIBF for the first time where centres have agreed to implementation timelines of QA action plan.
Marketing and Communications Department
BIBF employed a Marketing and Communication Manager at the start of 2009. BIBF identified the need for an independent department whose responsibility was to not only integrate all elements of the marketing and communications flows inwards and outwards to / from BIBF, but to do so in a planned and coherent manner. There were a number of strategic and tactical initiatives undertaken in 2009. These included: • The development of a Marketing and Communications Strategic Plan, which was submitted to and approved by the Board. • Development of an annual tactical plan including by initiative, activity, associated budget implications and specific budget reporting codes in order to create transparency of marketing expenditure. • The revising of all current role profiles of the department staff. This achieved the benefit of allowing staff to have a clearer view of their roles and responsibilities as well as identifying the specific volume of planned work that was needed to improve BIBF’s profile. The benefit by the end of 2009 was that staff had a much clearer sense of their performance and more specifically how this would translate into not only remuneration for 2010, but areas of professional development. • The tendering for an advertising agency to support all new BIBF creative work. The successful agency came on board to partner with BIBF in March 2009. The scope of their work ranged from Annual Report to preliminary recommendations for developing brand standards for all BIBF material which to date were not in existence. • We formed a one year strategic relationship with GDN for the purpose of showcasing the thought leadership talents of the BIBF Management Team in their various areas of expertise, as well as a mechanism to update the market with our relevant offerings available for training needs. This translated into 24 articles of one page each
every two weeks. We also looked at improving the profile of the BIBF brand by placement daily on the front page of the GDN Business page. This initiative was directly attributed to the successful negotiation of two new business development opportunities within the Accounting Centre. • We revamped our website and more specifically the home page as an interim solution to better provide users a more friendly and assessable experience. Ultimately the outcome of this exercise translated into tendering for a website provider who would be able to align the strategic marketing objectives in written form into technologic output in regards to the website. In November 2009 tenders were released by BIBF seeking a technology partner. The provider was assessed and announced in April 2010. • We also in the latter half of 2009 began to address our e-communications. The majority of the vast database of participant’s details was centralised between Marketing and Operations (Registration). It has always been the core of the Registration Department but there had been limited usage by the marketing and Communications team. We initiated in October 2009 the first branded email campaign to both members and non-members. This provided us with an opportunity to clearly highlight all our programmes on a consistent and planned basis, allowing us to send both bulk and segmented email communications. By year end we had no substantive results on effectiveness, however, we did find that the market was comfortable in receiving specific emails from us, with less than a 1% unsubscribe rate on emails sent. This was with a preliminary database size of 4500. • The department also oversaw the implementation of the Annual Report and both the 2009 and 2010 Course Catalogue.
BIBF
|
Annual Report 2009
33
Research Department
Research is an area that BIBF developed in 2009 with the setting up of the Research Department in September. Dr S P Parashar, Head of the Banking Centre was assigned Head of this new department. The mission, vision, and strategic plan of the Research Department for 2009-11 were finalised. The mission of the Research Department is to provide research services to the banking and business community of Bahrain and the region. Its vision is to be the single window for academic and applied research, research capacity building and enhancement, and research publications focused on and of interest to banking and business community of Bahrain and the region. The strategic plan of the Research Department finalised for 2009-11 aims at (i) creating a research culture at BIBF (ii) organising research methodology workshops (iii) organising case writing workshops (iv) seeking International partnerships (v) networking with leading researchers, research funding bodies, and publishers (vi) supporting presentation and publication of quality research. It was also decided to constitute a research advisory committee comprising all professional Centre heads and industry representatives including CBB, EDB, BSE, Waqf Fund, BCCI, BAB, to advise and support the development of the BIBF research department.
34
BIBF
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Annual Report 2009
A Research Methodology workshop occurred on November 12, 2009, and a Case Writing Workshop on November 19, 2009. 15 faculty members of BIBF participated and benefited from these workshops. The workshop presentations were video recorded and kept in the BIBF Library for reference. The Research Department has plans to organise more such workshops in 2010 to benefit BIBF faculty and financial services industry players interested in research.
Special Projects
In the aftermath of the 2009 financial crisis, BIBF has gathered a group market participants in collaboration with CBB to create a strong pool of Risk professionals geared up for the post crisis era. This initiative culminated in the development of a Risk Certification programme for all entrants into the Risk profession of Bahrain’s financial services sector. This programme will provide the minimum qualification recognised by CBB and designed and delivered by BIBF as the sole provider of the qualification. The programme is unique and one of its kind – encompassing all the different areas of Risk in conventional, Islamic and Insurance areas and their mitigation thereof. The programme has been developed by BIBF’s visiting professor Dr. Sudhakar Raju who has a joint appointment with Helzberg School of Management in Kansas City and Kennedy School Government in Harvard University in the US. The programme will be launched in June 2010 and is the only programme in the region for setting minimum entry criteria for Risk professionals by a central bank and the only one globally covering all the three different aspects of Risk in the financial services sector. In the post crisis era, focus on Risk Management is considered to be essential for the creation of a sound and robust financial system against random shocks— endogenous or exogenous. The CBB Risk Certification programme is the first component of a series of upcoming risk management programmes, in BIBF, of varying levels of complexity. The CBB Risk Certification programme represents the first level of the programme. The second level of the programme will be an explicit partnership between BIBF and PRMIA to offer a more advanced programme
in risk management. The third and final step is for candidates of these programmes to attain international qualifications like the PRM and FRM. Providing financial advice is considered a very crucial aspect of the financial sector growth. Professionals who are responsible for providing such a service need to be thorough in the knowledge base of the products they are selling and the various repercussions of investments in those products by varying client/investor profiles. Selection of qualified professionals for such an important task as financial advice becomes a challenge for any regulator and more so for Bahrain markets which are, similar to other regional markets, evolving continuously and progressively. The Central Bank of Bahrain commissioned BIBF to take the lead in setting and monitoring such standards for the regulator. BIBF has worked with market participants and international partners in collaboration with CBB, to develop an all encompassing minimum qualification for an entry level financial advisor in all areas namely conventional, Islamic banking and Insurance sectors. Under the guidance of Prof. Sudhakar Raju, the programme development has been commissioned to PWC, Ltd Bahrain. As per agreement with PWC, the programme will be ready for delivery in September 2010.
BIBF
|
Annual Report 2009
35
36
BIBF
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Annual Report 2009
BIBF Team
Director’s Office
Faculty
Garry Muriwai Director
[email protected]
Waseem Mirza Lecturer
[email protected]
Ebtisam A. Saad Executive Assistant
[email protected]
MBA in Finance and Marketing IMS, Lahore, Pakistan; M.Com in Advance Accounting - University of New South Wales; B.Com University of the Punjab, Lahore, Pakistan; Member - “Association of Accounting Technicians” (AAT), Australia
Human Resources Hussain Ismail Deputy Director
[email protected] Hassan Abbas HR Officer
[email protected] BIBF Learning Centres Centre for Academic and Executive Dr. Mohammed Al Khozai Head of Centre: Academic and Executive
[email protected]
Centre for Accounting and IT Namasiku Liandu Head of Centre: Accounting and IT
[email protected] Faculty Hafiz Qaisar Raza Khan Senior Lecturer
[email protected]
Zahra Tabbara Academic and Executive Coordinator
[email protected]
MCom in Accounting from Hailey College of Commerce, University of the Punjab, Lahore, Pakistan CMA - Certified Management Accountant, USA ACMA - Associate of Cost & Management Accountants, Pakistan
Lameea Mohammed Administration Coordinator
[email protected]
Syed Amir Zahid Senior Lecturer
[email protected]
Parween Haji Administration Coordinator
[email protected]
BA Corporate Secretaryship University of Madras, India ACA - The Institute of Chartered Accountants of India CIPA - Certified Islamic Professional Accountant, AAOIFI, Bahrain
Administration
Yousif Faraj Senior Lecturer
[email protected] MBA, Strathclyde University, UK
Farayi Patrick Chikwanda Lecturer
[email protected] BCompt (Accounting Science): University of South Africa (UNISA) Diploma in Accountancy, Southern Africa Association of Accountants (SAAA), Member of the Institute of Chartered Accountants, Zimbabwe (ICAZ)
Mahmood Abdulla Lecturer
[email protected] BSC in Accounting University of Bahrain, Bahrain CPA - American Institute of Chartered Public Accountants (AICPA), Colorado, USA
Nedhal Al-Faraj Lecturer
[email protected] BSDP BIBF, Bahrain NVQ in Business Administration, UK, Diploma in Business Administration, BTI, Bahrain
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BIBF Team
Administration
Centre for Insurance
Centre for Islamic Finance
Khulood Al Thaqafi Administration Coordinator
[email protected]
Husain Al Ajmi Assistant Director, Business Development and Head of Centre: Insurance
[email protected]
Mahmood Al Sheahabi Head of Centre: Islamic Finance
[email protected]
Faculty
Faculty
Kadri Rizk Head of Centre: Leadership and Management
[email protected]
Dr. Ahmed Assad Mahmoud Senior Lecturer
[email protected]
Faculty Amal A. Jabbar Al Awadhi Consultant and Trainer
[email protected]
Completing Post Doctorate PhD PhD in Islamic Commercial Jurisprudence, International Islamic University, Malaysia MA in Islamic Economy, Yarmouk University, Jordan, BA in Sharia’a Mutah University, Jordan
BSC in Psychology with Clinical Psychology, University of Kent, UK
Centre for Banking Dr. Sat Paul Parashar Head of Centre: Banking
[email protected] Faculty Dr. Jyothi Venkatesh Senior Lecturer
[email protected] PhD in Finance from the Indian Institute of Science, Bangalore
Subramanian Ravi Senior Lecturer
[email protected] MA. C.A.I.I.B in Public Administration from Madras University, Chennai
Anuradha Shaw Lecturer
[email protected] MA in Economics (Distinction) Bangalore University, Karnataka, India
Chithra Suresh Lecturer
[email protected] MPhil in Applied Economics, Jawaharlal Nehru University, India MA in Economics, Calicut University, India, Certified Trade Finance Specialist, Indian Institute of Bankers Professional Diploma for Trainers and Tutors, Cambridge University, UK
Inuwa G. Affa Lecturer
[email protected] ACAMS, Miami FL, USA; PGD in Financial Management at A.T.B. University, Bauchi Nigeria
Administration Khulood Al Thaqafi Administration Coordinator
[email protected]
Dr. Tarek Seif Senior Lecturer
[email protected] PhD in Maritime Transport from Arab Academy for Science Technology and Maritime Transport ACII - Associate of Chartered Insurance Institute, UK
Ali Mohasen Lecturer
[email protected] BSC Mechanical Engineering, University of Bahrain, Bahrain ACII - Associate of Chartered Insurance Institute, UK
Manal Mohammed Mashkoor Lecturer
[email protected]
Huma Sodher Senior Lecturer
[email protected] BCom (Commerce & Law): University of Karachi, Pakistan LLM (Law): University of Karachi, Pakistan, ACA - Institute of Chartered Accountants of Pakistan, CIPA - Certified Islamic Professional Accountant, AAOIFI, Bahrain
BSC Business Information System, Bahrain University ACII - Associate of Chartered Insurance Institute, UK
Nedal El-Ghattis Senior Lecturer
[email protected]
Yousif Darwish Lecturer
[email protected]
MBA Royal Melbourne Institute of Technology (RMIT), Australia Diploma in Neuro-Languastic Programming from INLPTA, UK CIPA - Certified Islamic Professional Accountant, AAOIFI, Bahrain, CSAA - Certified Sharia’a Adviser and Auditor, AAOIFI, Bahrain
BSC Chemical Engineering, University of Bahrain, Bahrain ACII - Associate of Chartered Insurance Institute, UK
Administration Mahesh Prabhu Business Development Manager
[email protected] MBA, Washington International University, USA, P.G. Dip. in Information Technology, Manipal University, India, BBM (HR), Mangalore University, India
Wafa Al Durazi Administrative Assistant
[email protected]
Alfatih Gessan Pananjung Aryasantana Lecturer
[email protected] MBA in Islamic Finance: International Islamic University of Malaysia, Kuala Lumpur, Malaysia BEng Bogor Agricultural University, Bogor, Indonesia
Administration Marwa Ahmed Administrative Assistant
[email protected] Sumayya Zainalabedin Administrative Coordinator
[email protected]
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Centre for Leadership and Management
Madhavi Tiwary Senior Lecturer
[email protected] MA in English Literature: Lucknow University, India MA in Education: Annamalai University, India Certificate in Instructional Skills: Oakland Schools, USA
Martin Smithies Senior Lecturer
[email protected] MA in Applied Linguistics and Language Teaching from the University of York
Muneer Mohammed Saeed Senior Lecturer
[email protected] Completing PhD MBA University of Durham, UK BSC Beirut Arab University, Lebanon, P.G. Dip. in Marketing: Chartered Institute of Marketing, UK, Chartered Marketer
Dr. Vijayalaxmi Moovala Senior Lecturer
[email protected] PhD in Business Management: Osmania University, India MBA: Nagarjuna University, India P.G. Dip. in Personnel Management: Indian Institute of Management Studies, India B. Com (Hons): Osmania University, India, Certified Master Trainer in Neuro-Linguistic Psychology – National Federation of Neuro-Linguistic Psychology, USA, Accredited Facet 5 User: Facet 5, N.L. Bukley, Australia
BIBF Team
Dr. Vivek Kumar Senior Lecturer
[email protected]
Marketing and Communications Department
Bader Al Ameer Information Desk Attendant
[email protected]
PhD in Management from the University of Indore, India MBA (HR) from University of Indore, India
Chris Carston Marketing and Communications Manager
[email protected]
Nasser Al Khayat Information Desk Attendant
[email protected]
Bader Abbas Al Nasser Lecturer
[email protected] BSC Management, University of Bahrain
Philip Mukhwana Lecturer
[email protected] BSC (Hons), (Physics and Mathematics): Makerere University, Kampala, Uganda, Diploma in Education: Makerere University, Kampala, Uganda, Business application of ICT (Post Grad Diploma): University of Cambridge, Advanced Diploma: Strategic Development of Human Resources: Institute of Commercial Management (ICM), UK, Professional Development Scheme, Chartered Institute of Personnel and Development (CIPD) UK
Administration Sameera Al Khal Administration Coordinator
[email protected] Sana Sarwani Administration Coordinator
[email protected] BIBF Business Departments Finance Department Ali Abdulla Zubari Finance Manager
[email protected] Administration Christine S. Al Arayedh Finance Officer
[email protected] Redha Mohammed Finance Officer
[email protected] Mahdi Abdul Nabi Accounts Assistant
[email protected]
Amal Al A’ali Marketing Officer - Youth and Digital
[email protected] Eman Al Khayat Marketing Officer - PR Publications & Internal Branding
[email protected] Gerry Palad Web Master/Graphic Designer
[email protected] Operations Department Khalid Al Medfaie Operations Manager
[email protected] Nawal Saif Registrar
[email protected] Administration Hassan Khamis Supervisor, General Service’s
[email protected] Afnan Ali Sahwan Administrative Assistant
[email protected] Fadheela Al Sharaf Administrative Assistant
[email protected] Farooq AbdulQader Administrative Assistant
[email protected] Muqtada Al Oraibi Administrative Assistant
[email protected] Nasreen Aqeel Administrative Assistant
[email protected] Sarah Saade Assistant Registrar
[email protected]
Sultan Al Rumaihi Information Desk Attendant
[email protected] Allan Mauleon IT Support
[email protected] Abdul Mutaleb Abdulla Receptionist
[email protected] George Epen General Service’s
[email protected] Hussain Askari Office Assistant
[email protected] Kakkarattu Kunnummal Rajan General Service’s
[email protected] Mohammed AbdulKhaliq Driver
[email protected] Quality Assurance Department Dr. Subhadara Ganguli Head: Quality Assurance
[email protected] Visiting Professor Sudhakar Raju Visiting Professor
[email protected] MA Economics University of Toldeo, Ohio, USA
[email protected] PhD Economics & Finance, Northern Illinois University, USA MPA Public Administration, Harvard University, USA FRM, (GARP)
Ahmed Al Alawi Information Desk Attendant
[email protected]
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BIBF Guest Speakers / Lecturers 2009
Centre for Academic and Executive Bentley College Dr. Bill Starner Dr. Bill VanderClock Dr. Bob McNulty Dr. Sue Newell Business English Programme A.Aziz Al Qassimi: College of Health & Sciences - Retire Gopika Beri: Gulf Air Naeema Al A’ali: Ministry of Education Reem Jaberi: Gulf Polytechnic Shireen Heidari: College of Health & Sciences Siddika Sabooni: Ministry of Education DePaul University Dr. Adam Gehr Dr. Animesh Ghoshal Dr. Bill Jedlicka Dr. Bob Greene Dr. Bruce Newman Dr. Daniel Deli Dr. Elijah Brewer Dr. Gilles Reinhardt Dr. Helen Lavan Dr. Humayon Dar Dr. Jaejoon Woo Dr. Jin Choi Dr. John Ahern Dr. Karim Pakravan Dr. Keith Howe Dr. Kevin Stevens Dr. Marty Martin Dr. Mike Miller Dr. Moh Omar Farooq Dr. Nabil Ibrahim Dr. Ramon Codina Dr. Sanjay Deshmukh University of Wales Ali Abbas: BBK Dr. Batool Asiri: University of Bahrain Bob Thaker: National Trading House Dr. Mohammed Al Wosabi: University of Bahrain Sadiya S. Hashmi
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Centre for Accounting and IT
Centre for Islamic Finance
Eliot Stenzel: Consulting Hameed Salman: Delmon Management Consulting Isa Al-Mutawaj: Central Bank of Bahrain Jamal Al Mutawa: GOSI Kishore Dash: Gulf Finance House Lakshmi Lakshman: Private Consultant Pol Robert Tansens: Consulting
A Sattar Abu Ghuda: Al Baraka Group Ahmad Al Saad: Yarmouk University Ahmad Nassar: CIBAFI Arif Khalifa: Kuwait Finance House Chris O’Malley: ICMA Centre – University of Reading Eman Bu Rashid: Keynotes Consultants Gohar Bilal: BNP Paribas Hussain A. Haq: Al Salam Bank Jaafar Al Omran: Al Baraka Banking Group Mahmoud A.Bari: Qatar National Bank Mohammed Belgami: Bahrain Islamic Bank Nathif Adam: First Community Bank Taha Al Tayeb: Badr Al Islami
CPA / CMA Abdulla Al-Madhoob: Private Consultant Ahmed Al-Sulaiman: STC Dr. Gagan Kukreja: Al-Ahlia University Hameed Salman: Delmon Management Consulting Isa Al-Motawaj: Central Bank of Bahrain Lakshmi Lakshman: Private Consultant Kishore Dash: Gulf Finance House Manal Al-Sarraf: Batelco Mohammed Al-Mulla: Gulf Air Rushdi Kikhia: Deloitte & Touche Samar Agaiby: Housing Bank Shadi Zahran: Ahli United Bank Venkat Maravan: Gulf 1 Bank Centre for Banking Jose Paul Martin: Venture Capital Bank Nader Al Soufi: CrediMax Saleh Hussain: Saleh Hussain Consultancy Savitha Ragjavan: PriceWaterHouseCooper Surendra Barsode: Aptivva Consulting Solutions (P) Ltd Centre for Insurance Ayman Al Ajami: AIG Enaya Dr. Farid Al Sahn: University of Bahrain Jaffer Jahromi: Iran Insurance Jaffer Mazaal: CII Mohammed Radhi: AIG Enaya Nader Mandeel: CBB Sadiq Al Aali: AXA Insurance
Centre for Leadership and Management Managing Productivity, Quality & Processes within Banks & Insurance Co. Alan Speed: Management Improvements Ltd The Leadership Challenge Tom Flatau: Teamworking Facet 5 David Davenport: Gulf World Institute Parttime Lecturers / Consultants for various Public Offerings Abdulla Al Moosa: Private Consultant Geetu Kalani: Private Consultant Glenn Van Kessel: Private Consultant Greg White: Private Consultant Hind Idris: Private Consultant Lakshmi Lakshman: Private Consultant Omneya Badr: Private Consultant Omran Khayami: Private Consultant Vincent Koyle: Private Consultant Yosr Fareed: Private Consultant
Participating Organisations Member Organisations comprise financial services institutions in Bahrain which financially support and actively use the services provided by BIBF.
Financial Sector Abu Dhabi Investment House Addax Investment Bank Ahli United Bank Al Khabeer International Bank Allied Banking Corporation Alpine Wealth Management Al Salam Bank Alubaf Arab International Bank Al Yousuf Exchangers Albaraka Banking Group Allianz Global Investors Allianz MENA Holding Co. AMEX (Middle East) Arab Bank PLC Arab Banking Corporation Arab Financial Services Arab Investment Company Arcapita Bank Askari Bank Ltd Awal Bank Bahrain Credit Bahrain Development Bank Bahrain Express Exchange Bahrain International Bank Bahrain Islamic Bank Bahrain Stock Exchange Bahraini Saudi Bank Bank Al Habib Ltd Bank AlFalah Limited Bank Muscat International Bank of Bahrain & Kuwait Bank of Tokyo - Mitsubishi Ltd BMB Investment Bank BMI Bank BNP Paribas Calyon Bank (Credit Agricole) Capinnova Investment Bank Capital Management House CAPIVEST Central Bank of Bahrain Citibank N.A. CrediMax Credit Libanais Daiwa Securities SMBC Europe Ltd Denizbank
Deutsche Bank Dexia Private Bank Elaf Bank Eskan Bank European Islamic Investment Bank Family Bank Finansbank A.S. First Energy Bank First Investment Bank First Leasing Bank Future Bank Global Banking Corporation Gulf Custody Company Gulf Finance House Gulf International Bank Habib Bank Ltd HDFC Bank HSBC Bank Middle East Ltd HSBC Bank Middle East Ltd Wholesale Bank ICICI Bank Ltd ING Bank A.S. INSTRATA Capital BSC International Investment Bank Investcorp Bank Investment DarBank Investors Bank Ithmaar Bank JPMorgan Chase Bank Khaleeji Commercial Bank Korea Exchange Bank Kuwait Finance House Kuwait Turkish Participation Bank LGT Bank In Liechtenstein Ltd Liquidity Management Centre Mashreq Bank Maybank MCB Bank Ltd Merrill Lynch International Bank Ltd Mizuho Corporate Bank Ltd National Bank of Abu Dhabi National Bank of Bahrain National Bank of Kuwait National Bank of Pakistan National Finance House
NCB Capital NEXUS Financial Services Nomura Investment Banking (ME) Oasis Capital Bank Reef Bank Sakana Holistic Housing Securities & Investment Co. Seera Investment Bank Shamil Bank of Bahrain Standard Chartered Bank State Bank of India T. Vakiflar Bankasi TAO T. Halk Bankasi A.S. Tadhamon Capital TAIB Bank Tharawat Investment House The Benefit Company The Housing Bank for Trade and Finance The International Banking Corporation The Islamic Bank of Asia Ltd The Saudi National Commercial Bank TSKB (Industrial Development Bank of Turkey) Turk Ekonomi Bankasi Turkiye IS Bankasi A.S. Unicorn Investment Bank BSC United Bank Ltd United Gulf Bank UBS AG Venture Capital Bank Wealth Management Group Woori Bank Yapi Ve Kredi Bankasi Insurance Companies ACE Insurance ACR ReTakaful MEA BSC AF Willis Faber AIG - New Hampshire Insurance Al Ahlia Insurance Company Allianz (Takaful) Bahrain American Life Insurance (ALICO) Arab Insurance Group (ARIG) Arabia Insurance Co.
AXA Insurance (Gulf) BSC AXIS International Bahrain Kuwait Insurance Co Bahrain National Holding Co Bahrain National Insurance Company Bahrain National Life Insurance CHARTIS - Takaful Enaya (AIG) Cunningham Lindsey Middle East Fakhro Insurance Services Gulf Union Insurance & Projects Management Holding Co Gulf Union Insurance & Reinsurance Co. ICICI Prudential Life Insurance Co Ltd Intershield WLL Iran Insurance Co. Labuan Reinsurance Ltd Life Insurance Corporation (International) Medgulf-Bahrain New India Assurance Co Ltd Oryx Insurance Services Protection Insurance Services Royal & Sun Alliance Ins. ME Royal & Sun Alliance Ins. Plc Saudi National Insurance (SNIC) Solidarity Family Takaful Solidarity General Takaful Solidarity Group Holding Takaful International Co. T’azur Trade Union Insurance Co Trust International Insurance Co United Insurance Co. Willis Faber Zurich Insurance Services (ME) Zurich International Life Insurance Co
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Participating Organisations Non-member Organisations comprise institutions other than Members who use the services provided by BIBF.
Azerbaijan Caspian International Investment Company PASHA Bank Bahrain AAOIFI Ahmed Mansoor Al A’ali Al Faraj Trading Al Hassanain Company Al Kooheiji Electrical Contractors Al Nabaa Commercial Services Al Rashid Group Al Taweel Group Ali Turk Establishment Aluminium Bahrain (ALBA) APICORP APM Terminals Bahrain Arabian Gulf Associates Aramex International ASRY Atkins Awal Express Awal Gulf Manufacture Bahrain Institute of Public Administration Bahrain Mumtalakat Holding Company Bahrain Polytechnic Bahrain Precast Concrete Company Bahrain Royal Flight BANAGAS BAPCO Barwa Bahrain BATELCO BBWA BDF Medical Services Bemco International Bahrain Bhatia Company BMMI Chevron CIBA Speciality Chemicals Civil Aviation Affairs Coldwell Banker Constitutional Court
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Council of Representatives Crown Prince Court DHL Aviation Service Diyar Al Muharraq Durrat Al Bahrain Durrat Resort Management Edamah (Bahrain Real Estate Investment Co.) Electricity & Water Authority ESB International Esterad Investment Euro Motors WLL Expressions General Organization for Youth GFH Support Services Global Intellectual Plus Global Payment Services GOSI GPIC Gulf Diabetes Specialist Center Gulf Electronic Management System Gulf Industrial Investment Company H. Q. Bahrain Defence Force HAJ Gulf Haji Hassan Group Hannover Re Takaful Hempel Paint HRD Fund IFP Middle East Consulting INOVEST Intercol International Turnkey System Bahrain Ithmaar Bank Kooheji Contractors KPMG Fakhro Land Gulf Insurance LMRA M.H. Al Mahroos BSC(C) Maalem Holding MAF Investments Bahrain Marina West MAZA
MedNet Bahrain WLL Midal Cables Ltd Ministry of Education Ministry of Electricity & Water Ministry of Finance Ministry of Health Ministry of Industry & Commerce Ministry of Labour Ministry of Municipality Ministry of Social Development Ministry of Work National Audit Court National Motor Company National Occupational Safety & Health Centre Nonoo Exchange Co SP Northern Municipality Ohad Trusts Corporation Omrania & Associates Oriental Press Prime Minister Court PTTEP Bahrain Company Limited Qays H. Zubi Office Ramsis Engineering Remza Investment Company Robeco-WPG Royal Charity Organisation Royal Court Royal Family Council Sabre Safe Hand Health System Holding Sayyar Trading Agencies Sh. Isa Bin Mohammed Law Office Shaheen Group Shura Council - Bahrain Specific Council for Vocational Training in Construction Sunni Waqf TAIB Bank E.C. Tamkeen Tender Board The Family Office Company The Islamic Association
United Arab Construction Universal Rolling Y. K. Al Moayyed Yokogawa Middle East Zain Group Zayani Motors Iran Bank Tejarat Bank Sepah Jordan Jordan Insurance Regulatory Middle East Insurance Company Kuwait Boubyan Bank Central Bank of Kuwait BKIC Gulf Insurance Company United Insurance Bureau Warba Insurance Company Al-Sayer Est. Kuwait Investment Authority Libya Mazaya Centre Oman Bank Sohar Oman Arab Bank Oman Insurance Authority Public Authority For Social Insurance Qatar Al Mal Bank Bank of Tokyo-Mitsubishi UFJ Barwa Bank BNP Paribas Commercial Bank of Qatar Masraf Al Rayan Qatar Islamic Bank Doha Insurance Company Conxion Logistics & Heavy Equipments
Participating Organisations Non-member Organisations comprise institutions other than Members who use the services provided by BIBF.
Saudi Arabia A. A. Turki Corporation Al Anood Investments Al Rajhi Insurance Company Al Rushaid Petroleum Investment Company Alinma Bank Assets Financial House AXA Insurance Bank Albilad Banque Saudi Fransi EniRepSa Gas Limited Fransi Tadawul LLC Gulf Co-operative Insurance Company Islamic Development Bank Alturki Group Malath Cooperative Insurance & Reinsurance Company Marsh MEDGULF NCB Pan Gulf Holding Payong Rawabi Holding Company Riyadh Bank Sabb Takaful SABIC-Saudi Arabia Sahm Al Nour Project SAMA Saudi Aramco Saudi British Bank Saudi Electricity Company Saudi Hollandi Bank Saudi National Insurance Saudi Re. Saudi Readymix Concrete Company Saudi Telecom SaudiPanGulf Trading Tawuniya Unicorn Capital Saudi Wahah Electric Supply Company
United Arab Emirates Abu Dhabi Islamic Bank Arab Trade Financing Programme Bank of Tokyo-Mitsubishi UFJ BNP Paribas ALICO Dubai Islamic Insurance & Reinsurance Company Emirates Insurance Company Tokio Marine & Nichido Fire Insurance Co. LTD Abu Dhabi Investment Council Arqaam Capital Health Authority of Abu Dhabi Royal Centre United Kingdom Bank of Tokyo-Mitsubishi UFJ Yemen United Insurance Company Yemen Islamic Insurance Company
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Glossary
ACAMS: Association of Certified Anti- Money Laundering Specialists ACCA: Association of Chartered Certified Accountants ACI: International Compliance Association ARM: Associateship in Risk Management
CFA: Chartered Financial Analyst CII: Chartered Insurance Institute CIA: Certified Internal Auditor CIMA: Chartered Institute of Management Accountants
Assessment Centre: Is a Centre designed to aid in placement of new staff or assessment of existing potential. Testing includes IT / Microsoft Level Determination; English Language Placement and Occupational Ability Tests
CIPD: Chartered Institute of Personnel and Development
Bahrain Institute of Banking and Finance (BIBF): one of the leading providers of Training, Education and Professional Development programmes to the financial industry in the Gulf and the Middle East.
Cohorts: a group of people who are enrolled in the same programme at the same time
BEP: Business English programme
CPP: Certificate in Personnel Practice
BSDP: Banking Studies Diploma Programme
CTP: Certificate in Training Practice
CBB Regulation: Central Bank of Bahrain rules/laws
Curriculum: The prescribed classes or course work needed to complete a programme of study leading to a degree or certificate
Centre for Academic and Executive: Specific department focused on Masters (De Paul) and Undergraduate (Wales) programmes and includes specific executive development offerings (incl. Leadership Programme) Centre for Accounting and IT: Specific department focused on Accounting (CPA and CMA in conjunction with Morgan) and other specialised areas and partnerships including IIA, ICAEW and ACCA. The department also develops multiple programmes in IT specifically Office applications training Centre for Banking: Specific department focused on Banking specialisation and partnerships / qualifications including ACAMS, ACI, AML, ICA and PRM. The department also leads the BSDP programme with pathways to the University of Newcastle Centre for Insurance: Specific department focused on Insurance specialisation with the key partnership being CII. It delivers the only fully Arabic Insurance qualification (PIC) Centre for Islamic Finance: Specific department focused on Islamic Finance specialisation. Centre for Leadership and Management: Specific department focused on Leadership and Management and other specialised areas and partnerships including CIPD (CPP and CPT) and CIMA. The department also runs the stand-alone Assessment Centre.
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CMA: Certified Management Accountant CMI: Chartered Management Institute
CPA: Certified Public Accountant
Customised Programmes: see Special Offerings Darden School of Business: US based institution that partners with BIBF in the Leadership Programme DePaul University: DePaul University is a private institution of higher education and research in Chicago, Illinois, USA. Executive Education: an education enabling executives to undergo transition from a functional to a general management role External Offering: Courses facilitated at BIBF by local and International Private Consultants with prominent market experience Financial Services Sector: The financial services sector encompasses a broad range of organisations that deal with the management of money. Among these organisations are banks, credit card companies, insurance companies, stock brokerages, investment funds and some government sponsored enterprises. (eg, central banks and insurance supervisory authorities GRCDP: Graduate recruitment and career development programme IBDF: Islamic Banking Diploma in Finance Guest Speakers/Lecturers: Part time instructors and lecturers
ICA: International Compliance Association ICAEW: Institute of Chartered Accountants of England and Wales IGIE: Global Insurance Education IIA: Institute of Internal Auditors Insurance Association of Insurance Supervisors (IAIS): an international organisation represents insurance regulators and supervisors of some 190 jurisdictions in nearly 140 countries Internationally Accredited: the course or certificate which is granted credit or recognition from institute, body or university that maintains suitable international standards LP: The Leadership Programme is the revised and successor to the previous Gulf Executive Development Programme Learning Centres: a specialised division of a BIBF devoted to specific filed of training (eg: BIBF learning centre.) Members: comprise financial services institutions in Bahrain which financially support and actively use the services provided by BIBF Morgan International: Partner. Co-collaborators in providing CPA and CMA qualifications Non-members: comprise institutions other than Members who use the services provided by the BIBF Participant Hours: Total participants hours attended by all BIBF programme participants during the year. Participant hours are calculated by multiplying the total number of participants into numbers of hours attended by them (No. of people x No. of hours) Participating Organisations: organisations that participated at BIBF PDFSM: is a qualification that provides the foundation knowledge and skills in financial services management PRIMA: Professional Risk Manager’s Association Private Sector: Organisations and entities that are not part of any governmental structure. Owned by shareholders or individuals
Professional Offering: BIBF offers a wide range of banking, finance, insurance, management, marketing, Academic and Executive Programmes, English and information technology courses to assist participants in their professional development Professional Qualification: is a designation earned by a person to assure qualification to perform a job or task Programmes: a programme designed or offered by BIBF for training in specific skills or knowledge including Training, Development and Professional Courses Public Offerings: Courses designed to meet the financial sectors training needs and they are open to individuals and groups. These course are offered free of charge for levy payers Public Sector: all enterprises and activities owned and funded by the government Special Offerings: Customised, company specific programmes designed to meet specific organisational needs and accommodate operating hours Specific Council: Board members of the Council for Vocational Training (Banking Sector) which was established upon Amiri Decree No.20 of 1975 Takaful Insurance: an alternative to conventional insurance observing the rules and regulations of Islamic law (Sharia’a) TAMKEEN: is a semi-autonomous yet independent authority which formulates strategic and operational plans to enhance the overall prosperity of Bahrain by investing in Bahraini employability, job creation, and social support University of Cambridge: Prestigious UK based University offering the Cambridge Diploma through the Centre for Leadership and Management University of Wales: Prestigious UK (Wales) based university offering its Validated Diploma through the Centre for Academic and Executive Waqf Fund: A Bahrain-based specialist fund which supports education and training in Islamic finance
PRM: Professional Risk Management is the global standard for the world’s top financial risk professionals
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Independent Auditors’ Report to the Specific Council for Vocational Training (Banking Sector)
Report on the financial statements We have audited the accompanying financial statements of Bahrain Institute of Banking and Finance – BIBF (the Institute) which comprise the statement of financial position as at 31 December 2009 and the statements of comprehensive income, changes in fund balance and cash flows for the year then ended and a summary of significant accounting policies and other explanatory notes. Management’s responsibility for the financial statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.
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Auditor’s responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Institute as at 31 December 2009, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.
16 March 2010 Manama, Kingdom of Bahrain
Shaping tomorrow’s financial leaders today BIBF Financial Statements 2009
Statement of financial position (All amounts expressed in Bahrain Dinars unless otherwise stated)
As at 31 December
Note
2009
Assets Non-current assets Property, plant and equipment 5 665,685 Current assets Receivables, advances and prepayments 6 861,654 Cash and cash equivalents 7 8,219,207 9,080,861 Total assets 9,746,546 Fund balance and liabilities Fund balance Accumulated surplus 6,396,466 Special reserve 8 1,893,119 8,289,585 Non-current liabilities Employees’ terminal benefits 9 71,246 Current liabilities Accounts payable and accruals 10 1,385,715 Total fund balance and liabilities 9,746,546
2008
716,388
873,426 6,789,209 7,662,635 8,379,023
5,183,929 1,856,187 7,040,116
42,609
1,296,298 8,379,023
The financial statements were approved by the Specific Council for Vocational Training (Banking Sector) on 16 March 2010 and signed on its behalf by:
Rasheed Al Maraj Chairman
Garry Muriwai Director
The notes on pages 52 to 62 form an integral part of these financial statements.
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Statement of comprehensive income (All amounts expressed in Bahrain Dinars unless otherwise stated)
Year ended 31 December
Note
2009
Revenue Tuition fees 4,147,768 Less: Direct tuition costs (1,976,570) Net tuition fees 2,171,198 Levy 2,000,909 Contribution 15,000 Other 15,046 4,202,153 Expenses Staff cost 11 (2,633,336) General and administrative expenses 12 (464,101) Depreciation 5 (144,649) (3,242,086) Operating profit for the year 960,067 Interest income 289,402 Profit for the year 1,249,469 Other comprehensive income - Total comprehensive income for the year 1,249,469
2008
4,404,649 (2,022,276) 2,382,373 1,637,632 15,000 19,258 4,054,263 (2,329,849) (496,105) (139,716) (2,965,670) 1,088,593 181,580 1,270,173 1,270,173
The financial statements were approved by the Specific Council for Vocational Training (Banking Sector) on 16 March 2010 and signed on its behalf by:
Rasheed Al Maraj Chairman
Garry Muriwai Director
The notes on pages 52 to 62 form an integral part of these financial statements.
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Statement of changes in fund balance (All amounts expressed in Bahrain Dinars unless otherwise stated)
Note
Accumulated surplus
Special reserve
Balance at 1 January 2008 3,998,867 1,771,076 Total comprehensive income for the year 1,270,173 - Transfer from accumulated surplus 8 (85,111) 85,111 Balance at 31 December 2008 5,183,929 1,856,187 Balance at 1 January 2009 5,183,929 1,856,187 Total comprehensive income for the year 1,249,469 - Transfer from accumulated surplus 8 (36,932) 36,932 Balance at 31 December 2009 6,396,466 1,893,119
The notes on pages 52 to 62 form an integral part of these financial statements.
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Total
5,769,943 1,270,173 7,040,116 7,040,116 1,249,469 8,289,585
Statement of cash flows (All amounts expressed in Bahrain Dinars unless otherwise stated)
Year ended at 31 December 2009
Cash flows from operating activities Profit for the year 1,249,469 Adjustments for: Depreciation 144,649 Interest income (289,402) Provision for doubtful debts - Changes in operating assets and liabilities: Receivables, advances and prepayments 11,772 Accounts payable and accruals 89,417 Employees terminal benefits 28,637 Net cash (used in)/provided by operating activities 1,234,542 Cash flows from investing activities Purchase of property, plant and equipment (93,946) Interest income received 289,402 Proceeds from held-to-maturity investment - Net cash provided by investing activities 195,456 Net increase in cash and cash equivalents 1,429,998 Cash and cash equivalents, beginning of the year 6,789,209 Cash and cash equivalents, end of the year 8,219,207
2008
1,270,173
139,716 (181,580) 48,837
(243,128) 100,716 33,235 1,167,969
(343,919) 181,580 667,290 504,951 1,672,920 5,116,289 6,789,209
The notes on pages 52 to 62 form an integral part of these financial statements.
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51
Notes to the financial statements
for the year ended 31 December 2009 (All amounts expressed in Bahrain Dinars unless otherwise stated)
1
General information
The Bahrain Institute of Banking and Finance (the “Institute”) was formed in the Kingdom of Bahrain by the approval of the Specific Council for Vocational Training (Banking Sector). The Institute is an unregistered non-profit entity and commenced its first training year on 1 September 1990.
The objective and principal activity of the Institute is to provide training to employees working in the financial sector of the Kingdom of Bahrain.
Major sources of finance of the Institute consist of:
a. Tuition fees in respect of various courses conducted by the Institute.
b. Mandatory levy equal to 1% of staff base payroll cost of all financial institutions licensed by the Central Bank of Bahrain.
c. An annual contribution of BD 15,000 is received from the Central Bank of Bahrain (the “CBB”). The utilisation of the contribution is at the discretion of the Institute.
2
Summary of significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Basis of preparation
The financial statements of the Institute have been prepared in accordance with International Financial Reporting Standards (IFRS). The financial statements have been prepared under the historical cost convention.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Institute’s accounting policies. Areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements are included in Note 4.
Standard amendments and interpretations to published standards effective from 1 January 2009.
The following amendment and interpretations to existing standards that have been published are effective for the Institute’s accounting period commencing 1 January 2009:
IAS 1 (revised), ‘Presentation of financial statements’ (effective from 1 January 2009). The revised standard prohibits the presentation of items of income and expenses (that is, ‘non-owner changes in equity‘) in the statement of changes in equity, requiring ‘non-owner changes in equity’ to be presented separately from owner changes in equity. All non-owner changes in equity are required to be shown in a performance statement, but entities can choose whether to present one performance statement (the statement of comprehensive income) or two statements (the income statement and statement of comprehensive income). Where entities restate or reclassify comparative information, they will be required to present a restated statement of financial position as at the beginning of the comparative period in addition to the current requirement to present the statement of financial position at the end of the current period and comparative period. The Institute has applied IAS 1 (revised) from 1 January 2009 and has used the statement of comprehensive income as performance statement.
IAS 39 (amendment), ‘Financial instruments: Recognition and measurement’. The amendment was part of the IASB’s annual improvements project published in May 2008. The definition of financial asset or financial liability at fair value through profit or loss as it relates to items that are held for trading was amended. This clarifies that a financial asset or liability that is part of a portfolio of financial instruments managed together with evidence of an actual recent pattern of short term profit taking is included in such a portfolio on initial recognition. Adoption did not have a significant impact on the Institute’s financial statements.
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2
Summary of significant accounting policies (continued)
Basis of preparation (continued)
Standard amendments and interpretations to published standards effective from 1 January 2009 (continued)
IFRS 7 (amendment), ‘Financial instruments – Disclosures’ – effective 1 January 2009). The amendment requires enhanced disclosures about fair value measurement and liquidity risk. In particular, the amendment requires disclosures of fair value measurements by level of a fair value measurement hierarchy. The Institute does not have financial instruments measured at fair value and accordingly, the adoption of this revised standard did not have any impact on the Institute’s financial statements.
IAS 32 (amendment), ‘Financial instruments: Presentation’, and IAS 1 (amendment), ‘Presentation of financial statements – Puttable financial instruments and obligations arising on liquidation’. The amended standards require entities to classify puttable financial instruments, or components of instruments that impose on the entity an obligation to deliver to another party a pro rata share of the net assets of the entity only on liquidation as equity, provided the financial instruments have particular features and meet specific conditions, including that all financial instruments in the class of instruments that is subordinate to all other instruments have identical features. The adoption of these amendments did not have any impact on the Institute’s financial position.
Standards, amendments and interpretations affective on 1 January 2009 but not relevant for the Institute’s operations
•
IAS 23 (amendment), ‘Borrowing costs’;
•
IAS 39 and IFRIC 9 (amendments), ‘Embedded derivatives’ (effective for all period ending on or after 30 June 2009);
•
IAS 39 and IFRS 7 (amendments), ‘Reclassification of financial assets’;
•
IFRS 1 (amendment), ‘First-time-adoption of IFRS’, and IAS 27, ‘Consolidated and separate financial statements’;
•
IFRS 2 (amendment), ‘Share-based payment’;
•
IFRS 8, ‘Operating segments’; and
•
IFRIC 15, ‘Agreements for construction of real estates’.
Standards, amendments and interpretations to published standards that are not yet effective and not relevant for the Institute’s operations
The following interpretations are mandatory for the Institute’s accounting periods commencing on or after 1 July 2009 or later periods but are not relevant for the Institute’s operations:
•
IAS 27 (Revised), ‘Consolidated and separate financial statements’, (effective from 1 July 2009);
•
IAS 39 (amendment), ‘Financial instruments; Recognition and measurement’ (effective from 1 July 2009);
•
IFRS 1 (amendments), ‘Group cash-settled share-based payment transactions’ (effective from 1 January 2010);
•
IFRS 3 (revised), ‘Business combinations’ (effective from 1 July 2009);
•
IFRIC 17, ‘Distributions of non-cash assets to owners’ (effective from 1 July 2009); and
•
IFRIC 18, ‘Transfers of assets from customers’ (effective from 1 July 2009).
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53
Notes to the financial statements (continued) for the year ended 31 December 2009 (All amounts expressed in Bahrain Dinars unless otherwise stated)
2
Summary of significant accounting policies (continued)
Basis of preparation (continued)
Standards, amendments and interpretations to published standards that are not yet effective and not relevant for the Institute’s operations (continued)
‘Improvements to IFRS’ were issued in May 2008 and April 2009 respectively and contain numerous amendments to IFRS, which the IASB considers non-urgent but necessary. ‘Improvements to IFRS’ comprise amendments that result in accounting changes for presentation, recognition or measurement purposes as well as terminology or editorial amendments related to a variety of individual standards. Most of the amendments are effective for annual periods beginning on or after 1 January 2009 and 1 January 2010, respectively, with earlier application permitted. No material changes to accounting policies are expected as a result of these amendments.
Foreign currency transactions
(a) Functional and presentation currency
Items included in the financial statements are measured using the currency of the primary economic environment in which the entity operates (the functional currency). The financial statements are prepared in Bahraini Dinars (BHD), which is the functional currency of the Institute, and is also the currency in which the financial statements are presented.
(b) Transactions and balances
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the transactions at year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the statement of comprehensive income.
Property, plant and equipment
Property, plant and equipment are stated at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Institute and the cost of the item can be measured reliably. Repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred.
Depreciation is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives as follows:
Building Furniture and fixtures Machinery and equipment Motor vehicles Training materials Computer software
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting period.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.
Gains and losses on the disposal of property, plant and equipment are determined by comparing the proceeds with the carrying amount and are recognised in the statement of comprehensive income.
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20 years 7 years 5 years 5 years 3 years 3 years
2
Summary of significant accounting policies (continued)
Financial assets
The Institute’s financial assets consist of loans and receivables. Management determines the classification of its financial assets at initial recognition. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They are included in current assets, except for maturities greater than 12 months after the statement of financial position date. These are classified as noncurrent assets. The Institute’s loans and receivables comprise ‘trade and other receivables’ and cash and bank balances on the statement of financial position.
Trade and other receivables
Trade and other receivables represent amounts due from customers for services performed in the ordinary course of business. If collection is expected in one year or less, they are classified as current assets. If not, they are presented as noncurrent assets.
Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for impairment of receivables is established when there is objective evidence that the Institute will not be able to collect all amounts due according to the original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments are considered indicators that the receivables are impaired. The amount of provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the statement of comprehensive income as impairment loss. When a receivable is uncollectable, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against bad debt expense in the statement of comprehensive income.
Provisions
Provisions are recognised when the Institute has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation.
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position.
Employee benefits
Employee benefits and entitlements to annual leave, holiday, air passage and other short-term benefits are recognised as they accrue to the employees. The Institute contributes to the pension scheme administered by the General Organisation for Social Insurance in the Kingdom of Bahrain. This is a defined contribution pension plan and the Institute’s contributions are charged to the statement of comprehensive income in the year to which they relate. In respect of this plan the Institute has a legal and constructive obligation to pay the contributions as they fall due and no obligations exist to pay the future benefits.
The expatriate employees of the Institute are paid leaving indemnity in accordance with the provisions of the Bahrain Labour Law. The Institute accrues for its liability in this respect on an annual basis.
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Notes to the financial statements (continued) for the year ended 31 December 2009 (All amounts expressed in Bahrain Dinars unless otherwise stated)
2
Summary of significant accounting policies (continued)
Revenue recognition
Revenue comprises the fair value of compensation received or receivable for the sale of services in the ordinary course of the Institute activities.
The Institute recognises revenues when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and when the specific criteria have been met for each of the Institute’s activities as described below. The amount of revenue is not considered to be reliably measureable until all contingencies relating to the sale have been resolved.
- Tuition income is recognised as and when the services are provided. - Contributions are recognized when the right to receive payment is established. - Levy and interest income are recognised as it accrues. - Other income is recognised when the services are provided.
Fiduciary activities
The Institute acts as trustees and in other fiduciary capacities that result in the holding of assets on behalf of other institutions. These assets and income arising thereon are excluded from these financial statements, as they are not assets of the Institute.
3
Financial instruments and risk management
The Institute’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The Institute’s overall risk management focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Institute’s financial performance. The Institute’s aim is, therefore, to achieve an appropriate balance between risk and return and minimise potential adverse effects on its financial performance.
The Institute’s risk management is based on a simplified framework with non-complex transactions to identify and analyse these risks, to set appropriate risk limits and controls, and to monitor the risks and adherence to limits by means of realisable and up-to-date information systems. Risk management is carried out by the senior management.
3.1 Market risk 3.1.1 Foreign exchange risk Foreign exchange risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in foreign exchange rates.
The Institute’s assets and liabilities are denominated primarily in Bahraini Dinars. Accordingly, the Institute is not exposed to foreign exchange risk as at 31 December 2009.
3.1.2 Interest rate risk Interest rate risk is the risk that the value of a financial instrument will fluctuate due to change in market interest rates.
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All short term deposits of the Institute have a maturity of less than 3 months. As such, the Institute is not exposed to interest rate risk as at 31 December 2009.
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3
Financial instruments and risk management (continued)
3.2 Credit risk
The Institute is exposed to credit risk, which is the risk that the counterparty will cause a financial loss to the Institute by failing to discharge an obligation.
The Institute’s credit risk arises from cash and bank balances and receivables advances and prepayments. For cash and bank balances, only independently rated parties with a good credit rating are accepted. The Institute has adopted a policy of only dealing with creditworthy counterparties. The Institute’s exposure of its counterparties is continuously monitored.
The Institute’s receivables are concentrated in the Kingdom of Bahrain.
3.3 Liquidity risk
Liquidity risk is the risk that the Institute is unable to meet its payment obligations associated with its financial liabilities when they fall due and to replace funds when they are withdrawn.
Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities. The liquidity risk management process, as carried out by senior management, includes:
•
Monitoring the cash flow and funding requirements on a daily basis; and
•
Establishing credit lines with banks and financial institutions to be drawn upon in case of need.
Additionally, the Institute relies on funding from the Bentley Fund
At 31 December 2009, all the financial assets and financial liabilities of the Institute are realisable within one year.
3.4 Capital management
The Institute’s objective when managing its capital, which comprises Fund balance, is to maintain a strong capital base to support the development of its business. In addition, the Institute may adjust the amount of annual appropriations made from the profit for the year. Refer to Note 8 for further details.
3.5 Fair value estimation
Fair value is the amount for which an asset could be exchanged, or a liability settled between knowledgeable, willing parties in an arm’s length transaction. The Institute does not fair value any financial assets or liabilities. However, in the view of the Institute’s management the fair values of assets and liabilities are not materially different from their carrying amounts.
4
Critical accounting estimates and judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Institute makes estimates and judgements concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below:
Impairment of trade and other receivables The impairment charge reflects estimates of losses arising from the failure or inability of the parties concerned to make the required payments. The charge is based on the ageing of the customers’ accounts, customer defaults, the customers’ credit worthiness and the historical write off experience. Changes to the estimated impairment charge may be required if the financial condition of the customers was to improve or deteriorate.
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57
Notes to the financial statements (continued) for the year ended 31 December 2009 (All amounts expressed in Bahrain Dinars unless otherwise stated)
5
Property, plant and equipment
Furniture Building and fixtures
Machinery and equipment
Training materials
Motor vehicles
Total
Cost At 1 January 2008 Additions At 31 December 2008
1,668,274 67,200 1,735,474
449,431 60,792 510,223
428,993 125,553 554,546
84,976 56,669 141,645
17,000 2,648,674 33,705 343,919 50,705 2,992,593
Accumulated depreciation At 1 January 2008 Charge for the year At 31 December 2008
1,239,976 85,111 1,325,087
406,015 10,861 416,876
388,522 35,540 424,062
84,976 3,148 88,124
17,000 2,136,489 5,056 139,716 22,056 2,276,205
Net book amount At 31 December 2008
410,387
93,347
130,484
53,521
28,649
Cost At 1 January 2009 Additions Disposals At 31 December 2009
1,735,474 32,655 - 1,768,129
510,223 11,653 - 521,876
554,546 21,463 - 576,009
141,645 28,175 - 169,820
50,705 2,992,593 - 93,946 (17,000) (17,000) 33,705 3,069,539
Accumulated Depreciation At 1 January 2009 Charge for the year Disposals At 31 December 2009
1,325,087 36,932 - 1,362,019
416,876 19,221 - 436,097
424,062 56,601 - 480,663
88,124 25,154 - 113,278
22,056 2,276,205 6,741 144,649 (17,000) (17,000) 11,797 2,403,854
Net book amount At 31 December 2009
406,110
85,779
95,346
56,542
The building is built on land donated by the Prime Minister on behalf of the Government of the Kingdom of Bahrain and registered in the name of the Central Bank of Bahrain.
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21,908
716,388
665,685
6
Receivables, advances and prepayments
Accounts receivable Accounts receivalbe written-off Allowance for doubtful debts Net accounts receivable Prepayments Advances to employees Interest receivable
2009
2008
765,620 (22,420) (28,375) 714,825
852,556 (75,596) (33,390) 743,570
43,107 47,904 55,818 861,654
32,825 25,789 71,242 873,426
As at 31 December 2009 receivables amounting to BHD 714,825 were fully performing (2008: BHD 743,570) and were all denominated in Bahraini Dinars.
Movements in the provisions for doubtful debts during the year were as follows:
At 1 January Charge for the year Provision reversal during the year Write-off during the year At 31 December
2009
2008
33,390 - (5,015) 28,375 - 28,375
48,837 48,837 (15,447) 33,390
The other calsses within receivables, advances and prepayments do not contain impaired assets. The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivables mentioned above.
7
Cash and cash equivalents
Cash on hand Bank balances Bank deposits
2009
2008
500 2,141,171 6,077,536 8,219,207
500 281,713 6,506,996 6,789,209
8
Special reserve
On 11 December 1994, the Specific Council for Vocational Training (Banking Sector), passed a resolution to establish a special reserve to meet future capital requirements for the purpose of major expansion or replacement of the existing facility. During 1994, the Institute made a total charge of BHD466,400 representing the accumulated depreciation on the building up to 31 December 1994. Accordingly, BHD 466,400 was transferred to the special reserve in 1994. Subsequently, each year the special reserve is increased by an amount equivalent to the depreciation on the building for that particular year.
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59
Notes to the financial statements (continued) for the year ended 31 December 2009 (All amounts expressed in Bahrain Dinars unless otherwise stated)
9
Employees’ terminal benefits
2009
2008
42,609 35,927 (7,290) 71,246
9,374 35,180 (1,945) 42,609
At 1 January Accruals for the year Payments during the year At 31 December
In accordance with the provisions of IAS 19, management has carried out an exercise to assess the present value of its obligations at 31 December 2009 and 2008, using the projected unit credit method, in respect of employees’ end of service benefits payable in accordance with the Institute’s terms of employment. Under this method, an assessment has been made of an employee’s expected service life with the Institute and the expected basic salary at the date of leaving the service. Management has assumed average increment costs of 5%. The expected liability at the date of leaving the service has been discounted to its net present value using a discount rate of 5% (2008: 5%).
The costs associated with contributions made by the Institute in relation to defined contribution pension scheme amounted to BD 85,436 (2008: 77,634). In relation to this plan, the Company has a legal and constructive obligation to pay the contributions as they fall due and no obligations exist to pay the future benefits.
10 Accounts payable and accruals
2009
Accounts payable Staff saving scheme Esterad-BIBF fund Other accruals Staff General Claim
60
993,880 350,683 32,184 8,968 - 1,385,715
2008
1,006,014 251,559 30,984 885 6,856 1,296,298
Staff saving scheme In January 2003, the Institute started a 5 year employees’ saving scheme program, where the Institute contributes an amount equal to 5% of each employee’s monthly salary in addition to the 5% contribution by each employee. The Institute has the right to discontinue contributions to the savings scheme at any time without further obligation.
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11 Staff cost
Salaries Housing allowance GOSI Staff training and development Medical benefits Education allowance Air fares Transport allowance Leaving indemnity Relocation of staff Membership Recruitment and advertisement Repairs and maintenance Other staff benefits
2009
2008
2,084,596 138,696 105,564 62,581 66,950 27,709 24,270 39,853 35,927 8,246 6,870 8,782 11,049 12,243 2,633,336
1,849,401 111,258 88,082 51,409 57,849 28,680 21,957 31,580 35,180 17,280 6,295 14,917 10,113 5,848 2,329,849
2009
2008
77,939 51,032 104,970 21,590 40,559 11,342 3,766 6,787 22,279 17,716 28,639 22,420 17,578 37,484 464,101
65,820 85,816 50,456 38,380 33,758 7,288 2,979 15,007 25,533 9,012 28,756 108,986 11,840 12,474 496,105
12 General and administrative expenses
Premises Business development Printing and advertising Stationery and supplies Telephone and telex Library books and periodical Postage Training materials Public Relations & Social Activities Repairs and maintenance Contract services Provisions for doutful debt Software Miscellaneous
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Notes to the financial statements (continued) for the year ended 31 December 2009 (All amounts expressed in Bahrain Dinars unless otherwise stated)
13 Related party transactions
The Institute carries out transactions in the normal course of business with related parties, defined as members of the Specific Council for Vocational Training (Banking Sector) and executive management of the Institute, individually or combined, have control or significant influence.
Key management compensation
Salaries and other short-term benefits Termination benefits, including staff saving scheme
2009
2008
513,174 43,900 557,074
501,090 39,689 540,779
14 BIBF-Bentley fund
62
The Institute received BD500,000 from the Central Bank of Bahrain for the BIBF-Bentley fund. The purpose is to assure financial support for the program until such time as Bentley and BIBF are able to develop a financially viable self sustaining arrangement.
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Annual Report 2009
