Successfully reported this slideshow.

Mizigo

809 views

Published on

Published in: Business, Economy & Finance
  • Be the first to comment

  • Be the first to like this

Mizigo

  1. 1. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTDANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2011 12 aTABLE OF CONTENTS PAGESociety information..................................................................................................................................2Report of the management committee.....................................................................................................3Statistical information..............................................................................................................................4Statement of management Committee’s responsibilities........................................................................5Report of the independent Auditors.........................................................................................................6 FINANCIAL STATEMENTSIncome statement.....................................................................................................................................7Balance sheet............................................................................................................................................8Statement of changes in equity................................................................................................................9Cashflow statements..............................................................................................................................10Notes.................................................................................................................................................11-14 1
  2. 2. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTDANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2011SOCIETY INFORMATIONMANAGEMENT COMMITTEEROBERT MATHENGE CHAIRMANPETER NDICHU VICE CHAIRMANTIRUS MAINA TREASURERBILAH AWINJA MALIKA SECRETARYJOSEPH MUKURIA COMMITTEE MEMBERSUPERVISORY COMMITTEEFRED MUYA CHAIRMANHANNAH NDUNG’U SECRETARYISAAC GATHOGO MEMBERREGISTERED OFFICEKENYA FIRE APPLIANCES CO. LTDMWANZO HOUSENDUNGA CLOSEP.O BOX 47804NAIROBIPRINCIPAL BANKERSCO-OPERATIVE BANK OF KENYAP.O BOX 48231-00100NAIROBIAUDITORSMINISTRY OF CO-OPERATIVE DEVELOPMENT AND MARKETINGP.O BOX 40811NAIROBI 2
  3. 3. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTDANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2011REPORT OF THE MANAGEMENT COMMITTEEThe management committee submits their annual report together with the audited financial statementsfor the year ended 31st December 2011.IncorporationThe society is incorporated in Kenya under the co-operative societies Act Cap 490 and is domiciled inKenya.Principal ActivityThe principal activity of the society is receiving savings and advancing loans to its members.Results 2011 Kshs. 2010 Kshs.Net Surplus before Tax 4,247.25 1,270.80Tax Expense (133.00) (213.00)Net Surplus After tax 4,114.25 1,057.80AuditorsMinistry of co-operative development and marketing has shown willingness to continue in office inaccordance with the co-operative societies Act.By order of management committeeSignature..................................................... Date...............................................Secretary 3
  4. 4. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTDANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2011 STATISTICAL INFORMATION AS AT 31/12/2011 2011 2010Number of members : Active 25 24 Dormant -- -- 25 24 Kshs. Kshs.Members deposits 2,089,459.00 1,999,889.00Reserves 252,900.55 248,785.30Loans to members 1,607,437.05 1,366,575.05Financial assets 11,900.00 11,000.00Total Assets 2,501,492.55 2,292,890.80Total Liabilities 2,176,592.00 2,044,104.50Interest income 158,360.25 145,854.80Key ratiosLiquidity ratio 1.15:1 1.1:1Percentage of expenses to revenue 97.4% 75%Interest on deposits 58,000.00 35,000.00 4
  5. 5. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTD ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2011 STATEMENT OF THE MANAGEMENT COMMITTEE RESPONSIBILITIES FOR THE YEAR ENDED 31ST DECEMBER 2011The co-operative societies Act 490 requires that management committee to prepare financial statements foreach year, which gives a true and fair view of the state of the affairs of the society as at the end of thefinancial year and its operating results for the year in accordance to IFRS. It also requires the managementto ensure that the society keeps proper accounting records, which disclose with reasonable accuracy, thefinancial position of the society. They are also responsible for safeguarding the assets of the society andensuring that the business of the society is conducted in accordance to its objectives, By-laws and any otherresolution made at the society’s general meeting.The management accepts responsibility for the annual financial statements, which have been prepared usingappropriate accounting policies, supported by reasonable and prudent judgements and estimates, inconformity with International Financial Reporting Standards and in the manner required by the Co-operative societies Act Cap 490. The management is of the opinion that the accounts give a true and fairview of the state of affairs of the society and of its operating results in accordance with IFRS. Themanagement accepts further responsibility for the maintenance of accounting records, which may be reliedupon in the preparation of financial statements, as well as adequate systems of internal financial control.Nothing has come to the attention of the management committee to indicate that the society will not be agoing concern for at least twelve months from date of this statement.Approved by the management Committee on................................................ and signed on its behalf by:Chairperson........................................................Treasurer.............................................................Member.................................................................. 5
  6. 6. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTDANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2011 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF KAMIKISU SACCOREPORT ON THE FINANCIAL STATEMENTSWe have audited the financial statements of Kenfire Sacco set out in pages 7-10 which comprise of balancesheet as at 31st December 2011, income statement, statement of changes in equity and cash flow statement forthe year then ended and a summary of significant accounting policies and other explanatory notes.The management committee’s Responsibility for the Financial StatementsThe management committee is responsible for the preparation and fair presentation of these financial statementsin accordance with international financial reporting standards and the requirements of the Kenya co-operativesAct. This responsibility includes designing, implementing and maintaining internal control relevant to thepreparation and fair presentation of financial statements that are free from material misstatements whether dueto fraud or error, selecting and applying appropriate accounting policies and making accounting policies that arereasonable in the circumstances. The Kenya co-operative Act also requires the management committee to ensurethat the society maintains proper books of accounts that are in agreement with balance sheet and incomestatement.Auditor’s responsibilityOur responsibility is to express independent opinion on these financial statements based on our Audit. Weconducted our audit in accordance with International standards on Auditing. Those standards require that wecomply with ethical requirements, plan and perform the audit to obtain reasonable assurance whether thefinancial statements are free of material misstatements.An audit involves performing procedures to obtain evidence about the amounts and disclosures in the financialstatements. The procedure selected depends on the auditor’s judgement including the assessment of the risk ofmaterial misstatement of the financial statements due fraud or error. In making those risk assessment; the auditorconsiders the internal control relevant to the society’s preparation and fair presentation of the financialstatements in order to design the audit procedures appropriate in the circumstances but not for purposes ofexpressing an opinion of effectiveness of the society’s internal control. An Audit also includes evaluating theappropriateness of the accounting estimates made by the management committee as well as evaluating theoverall presentation of the financial statements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouropinion.OpinionIn our opinion the financial statements give a true and fair view of the state of the society’s financial affairs as at31st December 2011, the results of its operations and cash flow for the year then ended in accordance withInternational Financial Reporting Standards and the requirements of the Kenya Co-operative Act.Report on Legal RequirementReport by the Kenyan Co-operative societies Act, we report to you that the financial statements are in agreementwith books of accounts kept by the society and that based on our audit; nothing has come to our attention thatcauses us to believe that the society’s business has not been conducted: a) In accordance with the provision of co-operative societies Act. b) In accordance with the Kenfire Sacco objectives, By-laws and any other resolutions made by the Society at a general meeting.FOR AND ON BEHALF OF AUDIT SERVICE DIVISIONMINISTRY OF CO-OPERATIVE DEVELOPMENT AND MARKETINGP.N KAROKI (MRS)PROVINCIAL CO-OPERATIVE AUDITORNAIROBI PROVINCE 6
  7. 7. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTDANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2011 INCOME STATEMENT FOR YEAR ENDED 31/12/2011 NOTES 2011 2010REVENUE Kshs. Kshs.Interest on member loans 157,472.00 144,432.05Other interest Income 2 888.25 1,422.75Interest expense 3 (58,000.00) (35,000.00)NET INTEREST REVENUE 100,360.25 110,854.84Other operating income 5,900.00 -- 106,260.25 110,854.84Administrative expenses 4 (90,565.00) (99,835.00)Other operating expenses 5 (11,448.00) (9,749.00)NET SURPLUS BEFORE TAX 4,247.25 1,270.80Tax expense 6 (133.00) (213.00)NET SURPLUS AFTER TAX 4,114.25 1,057.8020% Statutory reserve fund (823.00) (254.00)SURPLUS AVAILABLE FOR DISTRIBUTION 3,291.25 803.80 7
  8. 8. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTDANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2011 BALANCE SHEET AS AT 31/12/2011 NOTES 2011 2010 ASSETS KSHS. KSHS. Cash and cash equivalents 7 438,493.50 41,120.75 Trade and other receivables 8 439,931.00 439,931.00 Loans to members 9 1,607,437.05 1,366,575.05 Other financial Assets 10 11,900.00 11,000.00 Property plant & Equipment 11 3,731.00 4,264.00 Total assets 2,501,492.55 2,292,890.80 LIABILITIES Member deposits 12 2,089,459.00 1,999,889.00 Trade payable and other accruals 13 87,133.00 44,215.50 Total liabilities 2,176,592.00 2,044,104.50 SHAREHOLDERS FUNDS Share capital 72,000.00 -- Reserves 14 252,900.55 248,786.30 Total shareholders’ funds 324,900.55 248,786.30 Total liability and shareholders’ funds 2,501,492.55 2,292,890.80THE FINANCIAL STATEMENTS ON PAGES 7-10 WERE AUTHORISED FOR ISSUE BY THE BOARDON...................................AND SIGNED ON ITS BEHALF BY:CHAIRMAN.............................................................................COMMITTEE MEMBER..........................................................COMMITTEE MEMBER.......................................................... 8
  9. 9. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTD ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2011 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31-12-2011DESCRIPTION ENTRANCE FEES STATUTORY RETAINED CAPITAL TOTALS RESERVE EARNINGS RESERVE Kshs Kshs Kshs Kshs KshsBalance as at 01-01-2010 43,600.00 275,416.00 (72,431.50) 1,144.00 247,728.50Change in Accounting policy (43,600.00) 43,600.00Surplus 1,270.80 1,270.80Transfers to reserves 254.00 (254.00)Tax (213.00) (213.00)As at 31/12/2010 -- 275,670.00 (28,027.70) 1,144.00 248,786.30DESCRIPTION SHARE CAPITAL STATUTORY RETAINED CAPITAL TOTALS RESERVE EARNINGS RESERVE Kshs Kshs Kshs Kshs. KshsBalance as at 01-01-2011 -- 275,670.00 (28,027.70) 1,144.00 248,786.30Surplus before tax for the year 4,247.25 -- 4,247.25Tax provision (133.00) -- (133.00)Transfers to statutory reserve -- 823.00 (823.00) -- --Issuance of shares 72,000.00 -- -- -- 72,000.00As at 31/12/2010 72,000.00 276,493.00 (24,736.45) 1,144.00 324,900.55 9
  10. 10. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTDANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2011 CASHFLOW STATEMENT FOR THE YEAR ENDED 31/12/2011 2010 2011Cash flow from operating activities KSHS KSHSInterest received 473,172.53 553,147.00Other operating income 85,000.00 --Interest expense - (150,000.00)Payments to employees and suppliers (349,306.25) (357,306.25) 208,866.28 45,840.75Increase/decrease in operating assetsPrepayment and other receivables 414,084.25 (89,744.00)Loans to members (2,237,938.33) (87,520.53)Increase/decrease in operating liabilitiesMembers deposits 1,080,633.30 458,305.07Accounts payables and other accruals (26,738.50) (262,928.50)NET CASH FLOW FROM OPERATING ACTIVITIES (104,615.50) 245,100.00Cash flow from investing activities -Interest from bank - 2,500.00Co-op Bank dividends 90,000.00Cash flow from financing activities - -NET INCREASE/DECREASE IN CASH AND CASH EQUIVALENT (561,093.00) 331,493.85CASH AND CASH EQUIVALENT ON 01/01/2011 662,781.00 101,688.00CASH AND CASH EQUIVALENT ON 31/12/2011 101,688.00 433,274.85 10
  11. 11. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTDANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/20111. ACCOUNTING POLICIES The principal accounting policies adopted in the preparation of these financial statements are are setout below a) BASIS OF ACCOUNTING The financial statements are prepared, comply with (IFRS), and prepared under the historical cost convention. b) REVENUE RECOGNITION Interest on member’s loans and any other income is recognised on the year it is earned by the society. c) STATUTORY RESERVE FUND. Transfers are made to statutory Reserve Fund account at a rate of 20% on the net operating surplus after taxation in compliance with the provision of the Co-operative Societies Act2. OTHER INTEREST INCOME 2011(Kshs.) 2010 (Kshs.)Interest from bank(savings Account) 2,500.00 2,500.00 2,500.00 2,500.003. INTEREST EXPENSE 2011(Kshs.) 2010 (Kshs.)Bank Charges 18,306.00 16,306.00 18,306.25 16,306.254. ADMINISTRATIVE COSTS 2011 2010 Kshs. Kshs.Committee Sitting Allowance 180,000.00 180,000.00Committee subsistence allowance 6,000.00 6,000.00Book keeping fee 55,000.00 55,000.00AGM Expenses 82,000.00 82,000.00Audit fees 10,000.00 10,000.00Supervisory fees 1,000.00 1,000.00Recoverable expenses 200.00 200.00Legal expenses 4,000.00 10,000.00Education 12,000.00 - 350,200.00 344,200.005. OTHER OPERATING INCOME Kshs. Kshs.Co-operative Banks dividends 90,000.00 85,000.00 90,000.00 85,000.00 11
  12. 12. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTDANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/20116. CASH AND CASH EQUIVALENTS 2011 2010Bank-Savings Account 120.000.00 42,895.40Bank- current Account 313,181.85 58,792.60 11,448.00 9,749.007. PREPAYMENTS AND OTHER RECEIVABLES note 2011 2010Sun Dry debtors - 41,350.00Debtors - ex members (17) - 334,109.00Loan defaulters( list attached) 1,751,627.25 1,286,424.00Lost cash (16) 180,000.00 180,000.00 1,931,627.25 1,841,883.258. LOANS TO MEMBERS 2011 2010Balance b/f 6,257,541.00 4,019,603.20Disbursement 87,520.00 2,237,938.33 6,170,021.00 6,257,541.539. MEMBERS DEPOSITS 2011 2010Balance B/f 6,617,649.00 5,537,015.70Contribution/(refunds) during the year 458,305.07 1,080,633.30 7,075,954.07 6,617,649.00 12
  13. 13. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTDANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/201110. ACCOUNTS PAYABLE AND OTHER ACCRUALS 2011Kshs. 2010 Kshs.Audit fee 11,200.00 11,200.00Interests on deposits 250,000 150,000.00Provision for tax 375.00 375.00Credotirs – Ex members 630,884 882,237.50 892,459.00 1,043,812.5011. RESERVES 2011Kshs. 2010 Kshs.Retained earnings (51,323.97) (72,736.72)Statutory reserve fund 709,381.00 704,028.00 661,057.03 634,291.2812. AUDITOR OBSERVATION BUDGET a) The societies operation was within the budgetary provisions b) The performance of the society improved in comparison to the previous year 2010. We commend the general membership and the management officials.13. OTHER FINANCIAL ASSETS 31-12-2011 31.-12-2010 Kshs kshsShares in C.I.C shares (37 sahres@ kshs 100 3,740.00 3,740.00Shares in Co-op bank ( 2,179 shares @ Kshs 100) 217,900.00 217,900.00Shares in Kusco (110 shares @ 100) 11,000.00 11,000.00 232,640 233,64014. DEPOSITS AND LOANS BALANCES – CONTROL LEDGER v/s M.P AS Shares Loans DepositsBalance as per control ledger 138,000.00 6,170,021.00 7,075,954.00Balance as per MPA 138,000.00 5,377,172.00 7,133,284.00 - 792,849.00 57,330.00The differences particularly on loans are material and hence management should look for a way ofreconciling them. This must be done before the next Audit15. INTEREST EXPENSEThis refers to proposed interest on deposit of Kshs. 250,000.00This translates to 3.5% of the total deposits as at 31-12-201216. LOST CASHAs reported in the last audit, this refers to a brought forward figure. The money was stolen when theoffice was broken. The matter was reported to the police. The current management should follow upthe issue til the money is recovered. 13
  14. 14. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTDANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2011 NAME AMOUNT KSHS 1. WILLIAM MWANGI 33,527.00 2. JAMES MUKURIA WAINAINA 113,774.50 3. DENNIS OWINO 148,000.00 4. DAUDU KIAMBAA 169,900.00 5. CHRISTINE MBUGUA 107,392.00 6. KAGIRI KENNETH M. 11,031.00 7. KIAMBAA DAUDI 168,900.00 8. KILUNDO BENTACK 19,870.00 9. KIVINDU VICTOR WAMBUA 10,843.00 10. LUMBWAJI ALEXANDER 85,000.00 11. MUTUKU BONIFACE 85,000.00 882,237.50 14
  15. 15. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTDANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2011 NAME AMOUNT KSHS 1. KARUI ANTHONY 39,261.25 2. FRED CHISUTIA 43,932.50 3. RUTH MWAURA 33,400.00 4. JONATHAN NJERU 1,217.00 5. ROBERT ONGERI 1,750.00 6. EVA GITAU 918,357.00 7. FESTUS ODHIAMBO 161,979.00 8. ELISHA MBIRA 79,365.00 9. IRENE KAMAU 7,000.00 10. OCHIENG KENNEDY 162.50 1,286,424.25 15

×