The Friends In Ireland Trust (Registration number IT1148/2009) Financial statements for the year ended 31 December 2015

Transcription

1 Financial statements for the year ended 31 December 2015 Chartered Accountants (S.A.)

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 V.A. Fenton P.J. Shaper M. Corbally 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 the applicable requirements of the Board of Trustees.

3 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 (Registration number lt1148/2009) Trustees' ResponsibUities 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 financialjnformatlon included in this report.!us their responsibility to ensure that the financial statementsfalrty presentthe state ofaffalrs of the trust as afthe end ofthe financial year and the resuus of Its operations and cash flows.for the period then ended, in conformity with the lnlernationalfinancial Reporting Standard for Small and Mediumsized Entitles. The external auditor is engaged to express an independent opinion on the financial statements. The financial s atements are prepared fn accordance with the International Financial Reporting Standard for Small and Medium-sized. Entities arid are basetj upon appropriate accounting. policies consistently applied and supported by reasonable and prudentjudgments and estimates. The trustees acknowledge that they are ultimately responsible for the system of internal financial control established by the lrust and place considerable Importance on maintaining a strong control environment. To enable the trustees to meet these responsibilities, the trustees set standards forintemarcontrolaimed at reducing the risk.of error or loss in a cost e cuve manner. The standards indudethe proper delegation of responsibilities within.a clearly defined framework, effective accountin9 procedures and adequate segregation of duties to ensure an acceptablejevel 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 thatln air reasonable circumstances is above reproach. TheJocus of risk management In. the trust is on identifying, assessing, managing and monltoring 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 wlthln predetermined procedures and constraints. The trustees are of the opinion, based.on the information and explanations given by managementitmtlhe system of Internal control provldes reasoriable assurance that the financial. records maybe.relied 1:m 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 forecastfor the year to 31 December 2016 and; in 1he light of this review and the current financial position, they are satisfied that the trusthas or has access.to adequate resources lo contlnue 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 t.he trust's external auditor and their report is presented on page 4. The fin ncial statements set out on pages 5 to 15; which have been prepared on the going concern basis. were approved by the tru r es on. 20 May 20 6, an1 were signed on its behalf by:.'l. : Ha. Lau,, 4 Trustee

5 Paterson Dyke Chartered Accountants (S.A.) Registered Accountants and Auditors Practice No: E Sole Practitioner: Brian S. Collins Your reference Independent Auditor's Report Our reference Telephone: Fax: 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 2015, and 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 significant 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 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 financial statements present fairly, in all material respects, the financial position of The Friends In Ireland Trust as at 31 December 2015, and its financial performance and its cash flows for the year then ended in accordance with the International Financial Reporting Standard for Small and Medium-sized Entities, and the requirements of the Board of Trustees. Paterson Dyke C.A. (S.A.) Registered Auditor It 20 May 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 grant Civil Society Fund Contract No: CSF Purpose of the grant Friends in Ireland OVC (Orphans and vulnerable children) Care in South Africa. This includes the provision of drop-in centres and early childhood development for disadvantaged children. 4. Accounting for Grant Amount and term of grant: OOO from 22 October 2014 to 22 October 2016 Reconciliation of amounts received, expended and deferred as per table below. Grant received prior period Grant spent prior period Accrued as debtor in current period (Received after year end) Grant spent in current period Deferred to next period 60 OOO (15 466) 60 OOO (51 753) (52 781) R ( ) ( ) ( ) 5

7 Statement of Financial Position as at 31 December 2015 Figures in Rand Note(s) Assets Non-Current Assets Property, plant and equipment 2 Other financial assets 3 Deposit on property 4 Current Assets Trade and other receivables 5 Cash and cash equivalents 6 Total Assets Equity and Liabilities Equity Trust capital Accumulated surplus Liabilities Current Liabilities Trade and other payables Deferred income - Grants 7 Total Equity and Liabilities

8 Statement of Comprehensive Income Figures in Rand Incoming resources from charitable sources National Lottery Distribution Trust Fund - grant Resources expended Operating deficit Investment revenue Grant income brought forward/(deferred to future periods) Surplusf{deficit) for the period Other comprehensive income Total comprehensive income for the period Note(s) and OOO ( ) ( } ( ) ( ) { ) ( ) ( ) ( ) ( ) 7

9 Statement of Changes in Equity Figures in Rand Trust capital Accumulated surplus Total equity Balance at 01 January 2014 Deficit for the year Other comprehensive income Total comprehensive deficit for the year Balance at 01 January 2015 Deficit for the year Other comprehensive income Total comprehensive deficit for the year Balance at 31 December ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )

10 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 item 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

11 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 when 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 services 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

12 Notes to the Financial Statements Figures in Rand Property, plant and equipment Cost/ Valuation 2015 Accumulated Carrying value depreciation and impairments Land 400 OOO 400 OOO Buildings ( ) Furniture and fixtures (26 675) 6162 Motor vehicles ( } IT equipment (11 974) 2 Total ( ) Cost/ Valuation 400 OOO Accumulated Carrying value depreciation and impairments ( ) (24 167) ( ) (11 974) ( ) 400 OOO Reconciliation of property, plant and equipment 2015 Opening balance Land 400 OOO Buildings Furniture and fixtures Motor vehicles IT equipment Other changes, movements (37 270) ( ) Depreciation (25 171) (2 508) ( ) ( ) 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 impairment Nedbank Private Wealth Income Portfolios Made up of cash held in call interest bearing deposits. Interest rate at year end: 6.4% 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) (25 773) Non current assets At cost less impairment

13 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. 5. 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 National Lottery Distribution Trust Fund Current liabilities Grants received/accrued but not expended at the reporting date. Performance criteria to be fulfilled in subsequent periods. 13

14 Notes to the Financial Statements Figures in Rand Incoming resources from charitable activities Grant from Irish Aid Civil Society Fund (See note (a) below) Grant from National Development Agency (See note (b) below) Donation income Insurance claim Donations of non monetary assets (See note (c) below) Profit and loss on sale of shares OOO (a).irish Aid Civil Society Fund {CSF ) was granted to the Irish registered charity, Friends in Ireland with the understanding that it would be transferred to and expended by the South African Friends in Ireland Trust. (to be read in conjuction with Note No's: 7 and 9). (b). Grant from National Development Agency (to be read in conjunction with Note No's: 7 and 9) (c). Fair value of buildings erected by Mellon Educate on DIC and EDC sites for use in the furtherance of their charitable activities. 9. Grant income brought forward/(carried forward to future periods) - net movement Irish Aid Civil Society Fund National Lotto Distribution Trust Fund National Development Agency (9 321) ( ) ( ) 10. Investment revenue Dividend revenue Listed portfolio - Local Interest revenue Financial institutions

15 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 Costs 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) DevelopmentOrganisation (ECD) Development (CBO) Programme Management Travel & Logistics Staff Costs Other Support Costs Cash used in operations Deficit before taxation ( ) ( ) Adjustments for: Depreciation and amortisation Surplus on sale of assets ( ) ( ) Dividends received (87 214) (68 922) Interest received - investment ( ) ( ) Impairment (3 037) Other non-cash items Changes in working capital: Trade and other receivables ( ) (65 688) Trade and other payables (3 049) (2 642) Deferred income - Grants ( ) ( ) ( ) 15