The Friends In Ireland Trust (Registration number IT1148/2009} Financial statements for the year ended 31 December 2016

Transcription

1 (Registration number IT1148/2009} Financial statements for the year ended 31 December 2016

2 General Information Country of incorporation and domicile Type of trust Trustees Registered office Business address Postal address Bankers Auditor Level of assurance South Africa Discretionary M.C.M. Finucane J. Clarke B. Mc Donald P.J. Shaper 151 Main St KOKSTAD Hope St KOKSTAD 4700 P.O. Box65 KOKSTAD 4700 First National Bank Nedbank Paterson Dyke C.A. (S.A.) Chartered Accountants (S.A.) Registered Auditor These financial statements have been audited in compliance with th applicable requirements of the Board of Trustees.

3 (Registration number IT ) Index The reports and statements set out below comprise the financial statements presented to the trustees: Index Trustees' Responsibilities and Approval Independent Auditor's Report Trustees' Certificate of Assurance Statement of Financial Position Statement of Comprehensive Income Statement of Changes in Equity Statement of Cash Flows Accounting Policies Notes to the Financial Statements Page

4 Trustees' Responsibilities and Approval The trustees are required to maintain adequate accounting records and are responsible for the content and integrity of the financial statements and related financial infonnation included in this report. It is their responsibility to ensure that the financial statements fairly present the state of affairs of the trust as at the end of the financial year and the results of its operations and cash flows for the period then ended, in conformity with the International Financial Reporting Standard for Small and Mediumsized Entities. The external auditor is engaged to express an independent opinion on the financial statements. The financial statements are prepared in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities and are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgments and estimates. The trustees acknowledge that they are ultimately responsible for the system of Internal financial control established by the trust and place considerable importance on maintaining a strong control environment. To enable the trustees to meet these responsibilities, the trustees set standards for internal control aimed at reducing the risk of error or loss in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the trust and all employees are required to maintain the highest ethical standards in ensuring the trust's business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management In the trust is on identifying, assessing, managing and monitoring all known forms of risk across the trust. While operating risk cannot be fully eliminated, the trust endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetennined procedures and constraints. The trustees are of the opinion, based on the information and explanations given by management, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or loss. The trustees have reviewed the trust's cash flow forecast for the year to 31 December 2017 and, in the light of this review and the current financial position, they are satisfied that the trust has or has access to adequate resources to continue in operational existence for the foreseeable future. The external auditor is responsible for independently auditing and reporting on the trust's financial statements. The financial statements have been examined by the trust's external auditor and their report is presented on page 4. The financial statements set out on pages 5 to 15, which have the trustees on 30 June 2017 and were signed on its behalf by: H l --c_..q Trustee 3

5 Chartered Accountant:s' '(S.A.) Registered Accountants and Auditors Practice No: 90 I 776E Sole Practitioner: Brian S. Collins Your reference Independent Auditor's Report Our reference Fax: mail: brian@patersondyke.co.za 109 Main St P.O. Box35 KOKSTAD, 4700 Date To the trustees of The Friends In Ireland Trust We have audited the financial statements of The Friends In Ireland Trust, as set out on pages 6 to 15, which comprise the statement of financial position as at 31 December 2016, ana the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, and the notes, comprising a summary of signifi nt accounting policies and other explanatory information. Trustees' Responsibility for the Financial Statements The trust's trustees are responsible for the preparation and fair presentation of these financial statements in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities, and requirements of the Board of. Trustees, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error. Auditor's Responslblllty Our responsibaity 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 anc:1 disclosures in the financial statements. The procedures selected depend on the auditor's judgement. including the assessment of the risks of ma ertal 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 desigo 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 financial statements present fairly, in all material respects, the financial position of The Friends In Ireland Trust as at 31 December 2016, and its financial performance and its cash flows for the year then ended in accordance with the lnte i; nal-financiaf Reporting Standard for Small and Medium-sized Entities, and the req _ uirements M the Board of Trustees... Paterson Dyke C.A. {S.A.) Registered Auditor 30 June Main St KOKSTAD

6 Trustees' Certificate of Assurance This certificate of assurance is furnished in terms of the requirements of the Irish Department of Publice Expenditure and Reform in respect of Grants from the Exchequer Funds. In this regard the trustees confirm that the public money granted was used on accordance with the terms and conditions of the grant 1. The name of Grantor Minister for Foreign affairs and Trade: 2. Name of the grants Civil Society Fund Contract No: CSF Civil Society Fund Contract No: CSF Purpose of the grants Friends in Ireland OVC (Orphans and vulnerable children) Care in South Africa. This includes the provision of drol)-in centres and early childhood development for disadvantaged children. 4. Accounting for Grants Amounts and terms of grants CSF : 120 OOO CSF08-16: October 2014 to 22 October November 2016 to 23 November 2018 Reconciliation of amounts received, expended and deferred as per table below. Grant Contract CSF Grant utilised prior to 2016 Grant utilised 2016 Grant Contract CSF08-16 Grant recievable 2016 accrued as a debtor 120 OOO (67 219) (52 781) 170 OOO ( ) ( )

7 Statement of Financial Position as at 31 December 2016 Figures in Rand Note(s) Assets Non-Current Assets Property, plant and equipment 2 Other financial assets 3 Deposit on property 5 Current Assets Trade and other receivables 6 Prepayments 4 Cash and cash equivalents 7 Total Assets Equity and Liabilities Equity Trust capital Accumulated surplus Liabilities Current Liabilities Trade and other payables Deferred income - Grants 8 Total Equity and Liabllltles

8 Statement of Comprehensive Income Figures in Rand Incoming resources from charitable sources Resources expended Operating deficit Investment revenue Grant income brought forward/(deferred to future periods) Surplus/{deficit) for the period Other comprehensive income Total comprehensive Income for the period Note(s) Band ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) 7

9 Statement of Changes in Equity Figures in Rand Trust capital Accumulated surplus Total equity Balance at 01 January 2015 Deficit for the year Other comprehensive income Total comprehensive deficit for the year Balance at 01 January 2016 Deficit for the year Other comprehensive income Total comprehensive deficit for the year Balance at 31 December ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )

10 (Registration number 1T1148/2009) Statement of Cash Flows Figures in Rand Note(s) Cash flows from operating activities Cash used in operations 13 ( ) ( ) Interest income Dividends received Net cash from operating activities ( ) ( ) Cash flows from Investing activities Sale of property, plant and equipment Sale of financial assets (net) Increase in deposit on property (8 871) (31519) Net cash from investing activities Total cash movement for the year ( ) ( ) Cash at the beginning of the year Total cash at end of the year

11 Accounting Policies 1. Presentation of Financial Statements The financial statements have been prepared in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities. The financial statements have been prepared on the historical cost basis, and incorporate the principal accounting policies set out below. They are presented in South African Rands. These accounting policies are consistent with the previous period. 1.1 Property, plant and equipment Property, plant and equipment are tangible items that: are held for use in the supply of goods or services, for rental to others or for administrative purposes; and are expected to be used during more than one period. Property, plant and equipment supplied to donees for use in their community services is not capitalised by the trust and is expensed under charitable activities. However in the event of funders requiring that the items of property, plant and equipment funded by them be capitalised, such items are carried at cost less accumulated depreciation and accumulated impairment losses. Property, plant and equipment is carried at cost less accumulated depreciation and accumulated impairment losses. Cost includes all costs incurred to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Costs include costs incurred initially to acquire or construct an ttem of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised. Depreciation is provided using the straight line method, with the exception of buildings which is provided on the reducing balance method, to write down the cost, less estimated residual value over the useful life of the property, plant and equipment, which is as follows: Item Buildings Furniture and fixtures Motor vehicles IT equipment Average useful life 40 years 6 years 5 years 3 years The residual value, depreciation method and useful life of each asset are reviewed at each annual reporting period if there are indicators present that there has been a significant change from the previous estimate. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss in the period. 1.2 Investments Investments at cost Listed investments are measured at cost less impairments. Other wealth income portfolios are measured at cost less impairments. 1.3 Impairment of assets The trust assesses at each reporting date whether there is any indication that an asset may be impaired. If there is any indication that an asset may be impaired, the recoverable amount is estimated for the individual asset. The listed share portfolio is treated as a single asset and is impaired if the market value of the portfolio at the reporting date is less than the carrying amount. However if there is an indication that an individual investment may be impaired, the recoverable amount is estimated for that individual investment. 10

12 Accounting Policies 1.3 Impairment of assets (continued) If an impairment loss subsequently reverses, the carrying amount of the asset (or group of related assets) is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset (or group of assets) in prior years. A reversal of impairment is recognised immediately in profit or loss. 1.4 Provisions and contingencies Provisions are recognised when: the trust has an obligation at the reporting date as a result of a past event; it is probable that the trust will be required to transfer economic benefits in settlement; and the amount of the obligation can be estimated reliably. Contingent assets and contingent liabilities are not recognised. 1.5 Donation and grant Income Donations and grants that do not impose specified future performance conditions are recognised in income when the grant proceeds are receivable. Donations and grants that impose specified future performance conditions are recognised in income only INhen the performance conditions are met. Donations and grants received before the revenue recognition criteria are satisfied are recognised as a liability. Donations and grants of non monetary assets are measured at the fair value of the asset received or receivable. However donations and grants in the form of se,vices or assistance that cannot be measured reliably are excluded. 1.6 Other revenue Other revenue is recognised when all the following conditions are satisfied: the amount of revenue can be measured reliably; and it is probable that the economic benefits associated with the transaction will flow to the trust; Interest is recognised, in surplus or deficit, using the effective interest rate method. Dividends are recognised, in surplus or deficit, when the trust's right to receive payment has been established Borrowing costs Borrowing costs are recognised as an expense in the period in which they are incurred. 11

13 Notes to the Financial Statements Figures in Rand Property, plant and equipment Cost/ Valuation 2016 Accumulated Carrying value depreciation and Impairments Land 400 OOO 400 OOO Buildings ( ) Furniture and fixtures (29 182) 3655 Motor vehicles ( ) IT equipment (11 975) 1 Total ( ) Cost/ Valuation Accumulated Carrying value depreciation and Impairments ( ) (26 675) ( ) (11 974) ( ) Reconciliation of property, plant and equipment Opening balance Land 400 OOO Buildings Furniture and fixtures 6162 Motor vehicles IT equipment Disposals (39 500) (39 500) Depreciation (24 541) (2 507) ( ) (1) ( ) Total 400 OOO Details of properties Residential property, being erf 1017 situated in Kokstad, sq m In extent - Purchase price: 25 May Additions since purchase OOO OOO Other financial assets At cost less lmpainnent Nedbank Private Wealth Income Portfolios Made up of cash held in call interest bearing deposits. Interest rate at year end: % per annum. Treated as a long term investment in accordance with the intentions of the trustees. Market value at year end: R South African Equity Investment Portfolio Made up of listed equities and instruments and managed by Nedbank Private Wealth. Treated as a long term investment in accordance with the intentions of the trustees. Market value at year end: R Impairment (22 737) Non-current assets At cost less impairment Prepayments Prepayments comprise amounts transferred to Starfish, not yet expended in the period ended 31 December

14 {Registration number IT1148/2009) Notes to the Financial Statements Figures in Rand Deposit on property Payment of purchase price {plus accrued interest) lodged with attorney's, together with accrued subdivision costs, in respect of Lot 122 Franklin which is in the process of sub-division prior to registration. 6. Trade and other receivables Trade receivables VAT Accrued income Cash and cash equivalents Cash and cash equivalents consist of: Bank balances Cash on hand Deferred income - Grants Irish Aid Civil Society Fund: CSF Irish Aid Civil Society Fund: CSF Current liabilities Grants received/accrued but not expended at the reporting date. Performance criteria to be fulfilled in subsequent periods. 13

15 Notes to the Financial Statements Figures in Rand Incoming resources from charitable activities Grant from Irish Aid Civil Society Fund (See note (a) below) Donation income Insurance claim Miscellaneous income Profit and loss on sale of shares (a).irish Aid Civil Society Fund Grants (CSF and CSF08-16) were granted to the Irish registered charity, Friends in Ireland with the understanding that they would be transferred to and expended by the South African Friends in Ireland Trust. (to be read in conjuction with Note No's: 8 and 10). 10. Grant Income brought forward/(carried forward to future periods) - net movement Irish Aid Civil Society Fund National Lotto Distribution Trust Fund ( ) (9 321) ( ) Investment revenue Dividend revenue Listed portfolio - Local Interest revenue Financial institutions

16 Notes to the Financial Statements Figures in Rand Resources expended Charitable Activities Governance Costs Resources expended are analysed between costs of charitable activities and governance costs. The costs of each activity are separately accumulated, disclosed and analysed according to their major components. Support costs, which cannot be attributed directly to any one programme, are allocated in proportion to estimated staff time input. Charitable activities Drop In Centre (DIC) Early Childhood Development (ECD) Community Based Organisation Development (CBO) Costs of charitable activities comprise all expenditure incurred by The Trust in meeting its charitable objectives. Governance Coats Professional fees and other costs Direct costs Governance costs are those associated with the stewardship of The Trust in meeting its charitable objectives, together with related direct costs. Direct Costs Drop In Early Community Governance Centres Childhood Based Costs (DIC) DevelopmentOrganlsaUon (ECO) Development (CBO) Programme Management Travel & Logistics Staff Costs Other Support Costs Starfish expenses Cash used In operations Deficit before taxation ( ) ( ) Adjustments for: Depreciation and amortisation Surplus on sale of assets ( ) ( ) Dividends received (68 568) (87 214) Interest received Investment ( ) ( ) Impairment reversals (3 037) Other non.cash items Changes In working capital: Trade and other receivables (560422) ( ) Prepayments (436196) Trade and other payables (3 045) Deferred income - Grants ( ) 15 ( ) ( )