WESTLAKE UNITED CHURCH TRUST Registration number: IT409/2002. ANNUAL FINANCIAL STATEMENTS for the year ended 31 December 2005

Transcription

1 egistration number: IT409/2002 ANNUAL FINANCIAL STATEMENTS

2 ANNUAL FINANCIAL STATEMENTS The reports and statements set out below comprise the annual financial statements presented to the trustees: Index Page Statement of responsibility 2 eport of the independent auditors 3 Accounting policy notes 4 Balance sheet 5 Income statement 6 Cash flow statement 7 Notes to the financial statements 8-9 Page 1

3 STATEMENT OF ESPONSIBILITY The trustees are responsible for the maintenance of adequate accounting records and the preparation and integrity of the financial statements and related information. The external auditors are responsible for independently auditing and reporting on the fair presentation of financial statements in conformity with International Accounting Standards. The trustees are also responsible for the trust's systems of internal financial control. These are designed to provide reasonable, but not absolute, assurance as to the reliability of the financial statements, and to adequately safeguard, verify and maintain accountability of assets, and to prevent and detect misstatement and loss. Nothing has come to the attention of the trustees to indicate that any material breakdown in the functioning of these controls, procedures and systems has occurred during the year under review. The financial statements have been prepared on the going concern basis, since the trustees have every reason to believe that the trust has adequate resources in place to continue in operation for the foreseeable future. The financial statements which appear on pages 4 to 9 were approved by the board of trustees and signed on their behalf by: Trustee Trustee Date Page 2

4 Our reference: west ac_ EPOT OF THE INDEPENDENT AUDITOS TO THE TUSTEES OF WESTLAKE UNITED CHUCH TUST We have audited the annual financial statements of Westlake United Church Trust set out on pages 4 to 9 for the year ended 31 December These financial statements are the responsibility of the trustees. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with statements of South African Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance that the financial statements are free of material misstatement. An audit includes: examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Income In common with similar entities it has not been feasible for the entity to institute accounting controls over receipts prior to initial entry in the accounting records. Accordingly, it was impractical for us to extend our examination for grants, donations, crèche fees, hall hire, clothing and craft sales beyond the amounts actually recorded. In our opinion, except for the effect on the financial statements of the matters referred to in the preceding paragraph, the financial statements fairly present, in all material respects, the financial position of the entity at 31 December 2005 and cash flows for the period then ended. Greenwich Grove Station oad ONDEBOSCH SM ASSOCIATES (CAPE TOWN) Chartered Accountants (S.A.) egistered Accountants and Auditors Date Page 3

5 ACCOUNTING POLICY NOTES 1 Accounting policies The financial statements have been prepared on the going concern basis and the historical cost convention. 1.1 evenue recognition evenue is recognised on receipt of income. 1.2 Property Land and buildings are recorded at cost and are not depreciated. All other fixed assets are written off to the income statement in the year in which they are acquired. Page 4

6 BALANCE SHEET at 31 December Notes Assets Non-current assets Property Current assets Trade and other receivables Cash and cash equivalents Total assets Funds and liabilities Funds and reserves Funds Distributable reserve Current liability Trade and other payables Total funds and liabilities Page 5

7 INCOME STATEMENT evenue Clothing and craft sales Contributions received from churches Crèche fees Donations received Fundraising - City of Cape Town Fundraising - Overseas Grants received Hall hire Fundraising - Community Chest Photocopying and fax Sundry income Other income Interest received Total income Expenditure Auditors' remuneration Bank charges Community projects Computer expenses Craft expenses Donations Electricity and water Food parcels Fundraising expenses Groceries and cleaning Insurance Motor vehicle expenses Community Share expense Homebase care Postage Printing and stationery epairs and maintenance Salaries Security Squatter relocation cost Staff expenses Sundry expenses Telephone and fax Training Surplus for the year Transfer from social welfare fund etained surplus at beginning of year etained surplus at end of year Page 6

8 CASH FLOW STATEMENT Notes Cash flows from operating activities Cash receipts Cash paid to suppliers and employees ( ) ( ) Cash generated by operating activities Interest received Cash flows from investing activities Expenditure to expand operating capacity Proceeds of disposals of Land and buildings are recorded at cost and are not depreciated Cash flows from financing activities (28 019) Less: Loan repaid during the year - (19 823) Funds received (refer note 2) Less: expended on assets - Commando Hall - (40 213) Increase in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year Page 7

9 NOTES TO THE FINANCIAL STATEMENTS 1. Property Cost 2005 Accumulated depreciation Carrying value Cost 2004 Accumulated depreciation Carrying value Owned assets Land and buildings The carrying amounts of Land and buildings are recorded at cost and are not depreciated. The carrying amount of property can be reconciled as follows. Carrying value at beginning of year Carrying value at end of year 2005 Disposals Owned assets Land and buildings Land and buildings consist of: Erf Cape Town at Constantia. 2. Funds Development fund Balance at beginning of year Movement during year: - Funds received Profit on sale of property Less expenses: - Commando hall (14 083) (20 390) - Loan repaid - (19 823) Taxation No provision has been made for 2005 taxation as the trust is exempt under s10(1)(cn) of the South African Income Tax act. Page 8

10 NOTES TO THE FINANCIAL STATEMENTS 4. Notes to the cash flow statement Cash generated by operating activities Net surplus Adjustments for: Interest received (7 199) (132) (542) Movements in working capital Decrease/(increase) in accounts receivable (17 035) Increase in accounts payable Cash and cash equivalents Cash and cash equivalents included in the cash flow statement comprise the following balance sheet amounts: Cash and cash equivalents Page 9