Proposal for Opening a Teaching Center November 2013

The benefits from opening a teaching center

1. The university will ensure a qualitative delivery of ACCA materials to students that will enable them to pass the ACCA exams.

2. The university will be a pioneer in meeting the demand of the local community by offering these classes to students in high schools as well as its alumni because there is no other teaching center in this area.

3. The teaching center will bring a sustainable resource of revenue that can be used to fund other activities in the university. On the other hand, the university will have no rent expense as other teaching centers which will reduce its fees and encourage more people to join.

4. The teaching center will indirectly introduce high school students to the university and encourage them to join it when they finish their study at the high schools.

5. After one semester of teaching the ACCA papers, the university can apply for becoming as one of ACCA approved teaching centers in KSA which will bring invaluable publicity to the center through ACCA website and network.

The requirements for opening a teaching center

To take this initiative into practice, the university needs to meet the following requirements:1. Allocate some of its existing classrooms for teaching the ACCA

courses.2. Assign some of the existing faculty members to teach the ACCA

courses who can be trained by ACCA on how to deliver the exams topics and assist the candidates to pass the exams in the first attempt. Furthermore, ACCA can offer exam technique session to candidates.

3. Appoint one or more persons to handle all the administrative work of the training center who can be trained by ACCA on all the administrative tasks.

4. Apply for being one of the ACCA approved computer-based exam centers which is optional but preferable to add value to the teaching center as it meets the student need of sitting for the exam in the same place of study.

The potential clients for the teaching center

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Proposal for Opening a Teaching Center November 2013

On the other hand, the university can attract candidates for this center from the following categories:1. Current student of university in accounting & finance through

accounting club, class presentations to students, and similar activities

2. Students in high schools through the attraction unit at the university by making schools visits and presentations.

3. The alumni of the university through different communication channels.

Financial forecast for the teaching center

Finally, we propose the following pro-forma income statement for the coming five years which includes both revenues and expenses for this center.

2014 2015 2016 2017 2018Revenues Tuition Fees 180,000 225,000 300,000 375,000 450,000 Exams Fees 0 2,000 3,000 4,000 5,000Total Revenues 180,000 227,000 303,000 379,000 455,000Expenses Rent Expense 0 0 0 0 0 Lecturers Salaries Expense

140,000 140,000 192,000 240,000 288,000

Administration Salaries Exp

36,000 36,000 36,000 72,000 72,000

Stationary Expense 2,000 2,000 3,000 3,000 3,000 Exam Center Expense 1,000 1,000 1,500 2,000 2,500 Misc. Expense 2,000 2,000 2,500 3,000 3,500Total Expenses 181,000 181,000 235,000 320,000 369,000Net Income (Loss) (1,000) 46,000 68,000 59,000 86,000

Tuition FeesYear 2014 = 20 students X 3 classes X 2 semesters X AED 1,500 = 180,000

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Proposal for Opening a Teaching Center November 2013

Year 2015 = 25 students X 3 classes X 2 semesters X AED 1,500 = 225,000Year 2016 = 25 students X 4 classes X 2 semesters X AED 1,500 = 300,000 Year 2017 = 25 students X 5 classes X 2 semesters X AED 1,500 = 375,000Year 2018 = 25 students X 6 classes X 2 semesters X AED 1,500 = 450,000

Lecturers SalariesYear 2014 = 3 lecturers X 58 hours X 2 semesters X AED 400 = 139,200Year 2015 = 3 lecturers X 58 hours X 2 semesters X AED 400 = 139,200 Year 2016 = 4 lecturers X 60 hours X 2 semesters X AED 400 = 192,000 Year 2017 = 5 lecturers X 60 hours X 2 semesters X AED 400 = 240,000 Year 2018 = 6 lecturers X 60 hours X 2 semesters X AED 400 = 288,000

Administrative SalariesYear 2014 = 1 secretary X 12 months X AED 3,000 = 36,000Year 2015 = 1 secretary X 12 months X AED 3,000 = 36,000 Year 2016 = 1 secretary X 12 months X AED 3,000 = 36,000 Year 2017 = 2 secretaries X 12 months X AED 3,000 = 72,000Year 2018 = 2 secretaries X 12 months X AED 3,000 = 72,000

Kindly find below a graph that depicts both revenues and expenses for the first five years.

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Proposal for Opening a Teaching Center November 2013

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