The Institute of Risk Management South Africa (Registration number NPO) Financial Statements for the year ended 28 February 2015

Transcription

1 THE INSTITUTE OF RISK MANAGEMENT SOUTH AFRICA FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2015

2 General Information Executive Committee Business address S Morland C Palm M Robins P Tillman N Pandor C Brits B Gutshwa L Carlo M Kuipers A Mothibi 1st Floor, Block A Grayston Ridge Office Park 144 Katherine Street Sandton 2196 Postal address Postnet Suite 616 Private Bag X 43 Sunninghill 2157 Bankers Auditor's First National Bank A Fell Chartered Accountant (S.A.) Registered Auditor 1

3 Index The reports and statements set out below comprise the financial statements presented to the members: Index Page Independent Auditor's Report 3 Report of the Executive Committee 4 Statement of Financial Position 5 Statement of Comprehensive Income 6 Statement of Changes in Equity 7 Statement of Cash Flows 8 Accounting Policies 9-10 Notes to the Financial Statements

4 A. FELL Geoktrooieerde Rekenmeesters (SA) & Geregistreerde Ouditeure Chartered Accountants (SA) & Registered Auditors Praktyk/Practice no Kantore te / Oficce at: Bus / Box 15177, Lynn East, 0039 Plot 80, Zeekoegat, Pretoria, /E-Pos: afell@mweb.co.za No 16, 18 de / 18 th Str., Hazelwood, 0081 Tel (Zeekoegat) Cell (Zeekoegat) Tel (Hazelwood) Fax Independent Auditor's Report To the members of The Institute of Risk Management South Africa I have audited the financial statements of The Institute of Risk Management South Africa, as set out on pages 5 to 12, which comprise the statement of financial position as at 28 February 2015, and the statement of profit or loss and other 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. Executive Committee's Responsibility for the Financial Statements The Institute's executive committee is responsible for the preparation and fair presentation of these financial statements. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditor's Responsibility My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with International Standards on Auditing. Those standards require that I 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 Institute 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 Institute 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. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Opinion In my opinion, the financial statements present fairly, in all material respects, the financial position of The Institute of Risk Management South Africa as at 28 February 2015, and its financial performance and 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 Companies Act 71 of A Fell Chartered Accountant (S.A.) Registered Auditor 5 June 2015 Pretoria Vennoot / Partner: ANNELIEN FELL Cell

5 Report of the Executive Committee 1. Historical Background The Institute of Risk Management South Africa was formed as an Association of Persons following the amalgamation of two predecessor associations in September The Institute is registered as a Non-Profit Organisation. Operating from permanent offices in Sandton, Johannesburg, with a full time staff, it is the authorative professional body representing individuals and companies committed to the enhancement of Enterprise Risk Management (ERM). The Institute offers a range of services including the professional accreditation of members, interaction and discussion on current risk issues, research and project development, skills development and opportunities for networking and professional development. 2. Committee members and secretary The committee members of the Institute during the year and to the date of this report are as follows: Committee members Designation Changes S Morland President C Palm Vice President Appointed 19 June 2014 M Robins Vice President P Tillman Honorary Treasurer N Pandor Honorary Secretary Appointed 19 June 2014 C Brits Exco Member B Gutshwa Exco Member L Carlo Exco Member M Kuipers Exco Member Appointed 19 June 2014 A Mothibi Exco Member Appointed 19 June Date of authorisation for issue of financial statements The financial statements have been authorised for issue by the Executive committe on 21 May No authority was given to anyone to amend the financial statements after the date of issue. S Morland P Tillman 4

6 Statement of Financial Position as at 28 February 2015 Figures in Rand Note(s) Assets Non-Current Assets Property, plant and equipment Intangible assets Current Assets Trade and other receivables Cash and cash equivalents Total Assets Equity and Liabilities Equity Retained surplus Liabilities Current Liabilities Trade and other payables Income received in advance Total Equity and Liabilities

7 Revenue Annual Subscriptions Breakfast income ( ) (29 701) Conference income Dinner income Other event income Royalties Sale of books and booklets Training income Website related income Other income Interest received Profit on exchange differences SARS Employment Tax Incentive received Operating expenses Accounting fees Advertising and media Auditors remuneration Bad debts Bank charges Computer expenses Debtor collection fees Depreciation, amortisation and impairments Employee costs Education and technical development General expenses Insurance Internet costs Lease rentals on operating lease Members' meeting costs Printing and stationery Repairs and maintenance Security Telephone and fax Travel - local and overseas Operating profit Finance costs 8 (3 660) (145) Profit for the year

8 Statement of Changes in Equity Figures in Rand Retained surplus Total equity Balance at 1 March Profit for the year Balance at 1 March Profit for the year Balance at 28 February Note(s) 7

9 Statement of Cash Flows Figures in Rand Note(s) Cash flows from operating activities Cash generated from operations Interest income Finance costs (3 660) (145) Net cash from operating activities Cash flows from investing activities Purchase of property, plant and equipment 2 ( ) ( ) Purchase of other intangible assets 3 ( ) - Net cash from investing activities ( ) ( ) Total cash movement for the year (21 557) Cash at the beginning of the year Total cash at end of the year

10 Accounting Policies 1. Presentation of financial statements 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 production or 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 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 to write down the cost, less estimated residual value over the useful life of the property, plant and equipment, which is as follows: The useful lives of items of property, plant and equipment have been assessed as follows: Item Depreciation method Average useful life Furniture and fixtures Straight line 6-10 years IT Equipment Straight line 3 years The residual value, depreciation method and useful life of each asset are reviewed at each higher (lower) 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 Intangible assets Intangible assets are initially recognised at cost and subsequently at cost less accumulated amortisation and accumulated impairment losses. Research and development costs are recognised as an expense in the period incurred. Amortisation is provided to write down the intangible assets, on a straight-line basis, as follows: Item Capitalised development cost - Code of good practise Capitalised development cost - Board examinations Useful life 5 years 5 years If the institute is unable to make a reliable estimate of the useful life of an intangible asset, the life is presumed to be 10 years. The residual value, amortisation period and amortisation method for intangible assets are reassessed when there is an indication that there is a change from the previous estimate. 9

11 Accounting Policies 1.3 Revenue Revenue is recognised to the extent that the institute has transferred the significant risks and rewards of ownership of goods to the buyer, or has rendered services under an agreement provided the amount of revenue can be measured reliably and it is probable that economic benefits associated with the transaction will flow to the institute. Revenue is measured at the fair value of the consideration received or receivable, excluding sales taxes and discounts. Interest is recognised, in profit or loss, using the effective interest rate method. 10

12 Notes to the Financial Statements Figures in Rand Property, plant and equipment Cost Accumulated depreciation Carrying value Cost Accumulated depreciation Carrying value Furniture and fixtures (40 736) (14 753) IT equipment and computer ( ) ( ) software Total ( ) ( ) Reconciliation of property, plant and equipment Opening Additions Depreciation Total balance Furniture and fixtures (25 983) IT equipment and computer software (25 200) Reconciliation of property, plant and equipment (51 183) Opening Additions Depreciation Total balance Furniture and fixtures (4 124) Computer software (36 817) Intangible assets (40 941) Capitalised development cost - Code of practice Capitalised development cost - Board examinations Cost Accumulated Carrying value Cost Accumulated Carrying value amortisation amortisation Total Trade and other receivables Trade receivables Prepayments Deposits Cash and cash equivalents Cash and cash equivalents consist of: Bank balances Short-term deposits

13 Notes to the Financial Statements Figures in Rand Trade and other payables VAT Other payables Accrued expenses Investment revenue Interest revenue Bank Finance costs Bank Late payment of tax Taxation No provision has been made for 2015 tax as the Institute is exempt from taxation in terms of Section 10(1) of the Income Tax Act 1962, as ammended. 10. Auditor's remuneration Fees Tax and secretarial services Cash generated from operations Profit before taxation Adjustments for: Depreciation and amortisation Interest received - investment ( ) ( ) Finance costs Changes in working capital: Trade and other receivables ( ) (74 786) Trade and other payables Income received in advance ( ) ( ) 12. Commitments Operating leases as lessee (expense) Minimum lease payments due - within one year in second to fifth year inclusive Operating lease payments represent rentals payable by the institute for certain of its office properties and are negotiated for an average term of three years. No contingent rent is payable. 12