1. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2011
12 aTABLE OF CONTENTS
PAGE
Society information..................................................................................................................................2
Report of the management committee.....................................................................................................3
Statistical information..............................................................................................................................4
Statement of management Committee’s responsibilities........................................................................5
Report of the independent Auditors.........................................................................................................6
FINANCIAL STATEMENTS
Income statement.....................................................................................................................................7
Balance sheet............................................................................................................................................8
Statement of changes in equity................................................................................................................9
Cashflow statements..............................................................................................................................10
Notes.................................................................................................................................................11-14
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2. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2011
SOCIETY INFORMATION
MANAGEMENT COMMITTEE
ROBERT MATHENGE CHAIRMAN
PETER NDICHU VICE CHAIRMAN
TIRUS MAINA TREASURER
BILAH AWINJA MALIKA SECRETARY
JOSEPH MUKURIA COMMITTEE MEMBER
SUPERVISORY COMMITTEE
FRED MUYA CHAIRMAN
HANNAH NDUNG’U SECRETARY
ISAAC GATHOGO MEMBER
REGISTERED OFFICE
KENYA FIRE APPLIANCES CO. LTD
MWANZO HOUSE
NDUNGA CLOSE
P.O BOX 47804
NAIROBI
PRINCIPAL BANKERS
CO-OPERATIVE BANK OF KENYA
P.O BOX 48231-00100
NAIROBI
AUDITORS
MINISTRY OF CO-OPERATIVE DEVELOPMENT AND MARKETING
P.O BOX 40811
NAIROBI
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3. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2011
REPORT OF THE MANAGEMENT COMMITTEE
The management committee submits their annual report together with the audited financial statements
for the year ended 31st December 2011.
Incorporation
The society is incorporated in Kenya under the co-operative societies Act Cap 490 and is domiciled in
Kenya.
Principal Activity
The 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 1,270.80
Tax Expense (133.00) (213.00)
Net Surplus After tax 4,114.25 1,057.80
Auditors
Ministry of co-operative development and marketing has shown willingness to continue in office in
accordance with the co-operative societies Act.
By order of management committee
Signature..................................................... Date...............................................
Secretary
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4. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2011
STATISTICAL INFORMATION AS AT 31/12/2011
2011 2010
Number of members : Active 25 24
Dormant -- --
25 24
Kshs. Kshs.
Members deposits 2,089,459.00 1,999,889.00
Reserves 252,900.55 248,785.30
Loans to members 1,607,437.05 1,366,575.05
Financial assets 11,900.00 11,000.00
Total Assets 2,501,492.55 2,292,890.80
Total Liabilities 2,176,592.00 2,044,104.50
Interest income 158,360.25 145,854.80
Key ratios
Liquidity ratio 1.15:1 1.1:1
Percentage of expenses to revenue 97.4% 75%
Interest on deposits 58,000.00 35,000.00
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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 2011
The co-operative societies Act 490 requires that management committee to prepare financial statements for
each year, which gives a true and fair view of the state of the affairs of the society as at the end of the
financial year and its operating results for the year in accordance to IFRS. It also requires the management
to ensure that the society keeps proper accounting records, which disclose with reasonable accuracy, the
financial position of the society. They are also responsible for safeguarding the assets of the society and
ensuring that the business of the society is conducted in accordance to its objectives, By-laws and any other
resolution made at the society’s general meeting.
The management accepts responsibility for the annual financial statements, which have been prepared using
appropriate accounting policies, supported by reasonable and prudent judgements and estimates, in
conformity 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 fair
view of the state of affairs of the society and of its operating results in accordance with IFRS. The
management accepts further responsibility for the maintenance of accounting records, which may be relied
upon 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 a
going 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..................................................................
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6. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2011
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF KAMIKISU SACCO
REPORT ON THE FINANCIAL STATEMENTS
We have audited the financial statements of Kenfire Sacco set out in pages 7-10 which comprise of balance
sheet as at 31st December 2011, income statement, statement of changes in equity and cash flow statement for
the year then ended and a summary of significant accounting policies and other explanatory notes.
The management committee’s Responsibility for the Financial Statements
The management committee is responsible for the preparation and fair presentation of these financial statements
in accordance with international financial reporting standards and the requirements of the Kenya co-operatives
Act. This responsibility includes designing, implementing and maintaining internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatements whether due
to fraud or error, selecting and applying appropriate accounting policies and making accounting policies that are
reasonable in the circumstances. The Kenya co-operative Act also requires the management committee to ensure
that the society maintains proper books of accounts that are in agreement with balance sheet and income
statement.
Auditor’s responsibility
Our responsibility is to express independent 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, plan and perform the audit to obtain reasonable assurance whether the
financial statements are free of material misstatements.
An audit involves performing procedures to obtain evidence about the amounts and disclosures in the financial
statements. The procedure selected depends on the auditor’s judgement including the assessment of the risk of
material misstatement of the financial statements due fraud or error. In making those risk assessment; the auditor
considers the internal control relevant to the society’s preparation and fair presentation of the financial
statements in order to design the audit procedures appropriate in the circumstances but not for purposes of
expressing an opinion of effectiveness of the society’s internal control. An Audit also includes evaluating the
appropriateness of the accounting estimates made by the management committee 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
opinion.
Opinion
In our opinion the financial statements give a true and fair view of the state of the society’s financial affairs as at
31st December 2011, the results of its operations and cash flow for the year then ended in accordance with
International Financial Reporting Standards and the requirements of the Kenya Co-operative Act.
Report on Legal Requirement
Report by the Kenyan Co-operative societies Act, we report to you that the financial statements are in agreement
with books of accounts kept by the society and that based on our audit; nothing has come to our attention that
causes 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 DIVISION
MINISTRY OF CO-OPERATIVE DEVELOPMENT AND MARKETING
P.N KAROKI (MRS)
PROVINCIAL CO-OPERATIVE AUDITOR
NAIROBI PROVINCE
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7. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2011
INCOME STATEMENT FOR YEAR ENDED 31/12/2011
NOTES 2011 2010
REVENUE Kshs. Kshs.
Interest on member loans 157,472.00 144,432.05
Other interest Income 2 888.25 1,422.75
Interest expense 3 (58,000.00) (35,000.00)
NET INTEREST REVENUE 100,360.25 110,854.84
Other operating income 5,900.00 --
106,260.25 110,854.84
Administrative 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 1,270.80
Tax expense 6 (133.00) (213.00)
NET SURPLUS AFTER TAX 4,114.25 1,057.80
20% Statutory reserve fund (823.00) (254.00)
SURPLUS AVAILABLE FOR DISTRIBUTION 3,291.25 803.80
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8. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTD
ANNUAL 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 2,292,890.80
THE FINANCIAL STATEMENTS ON PAGES 7-10 WERE AUTHORISED FOR ISSUE BY THE BOARD
ON...................................AND SIGNED ON ITS BEHALF BY:
CHAIRMAN.............................................................................
COMMITTEE MEMBER..........................................................
COMMITTEE MEMBER..........................................................
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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 31-12-2011
DESCRIPTION ENTRANCE FEES STATUTORY RETAINED CAPITAL TOTALS
RESERVE EARNINGS RESERVE
Kshs Kshs Kshs Kshs Kshs
Balance as at 01-01-2010 43,600.00 275,416.00 (72,431.50) 1,144.00 247,728.50
Change in Accounting policy (43,600.00) 43,600.00
Surplus 1,270.80 1,270.80
Transfers to reserves 254.00 (254.00)
Tax (213.00) (213.00)
As at 31/12/2010 -- 275,670.00 (28,027.70) 1,144.00 248,786.30
DESCRIPTION SHARE CAPITAL STATUTORY RETAINED CAPITAL TOTALS
RESERVE EARNINGS RESERVE
Kshs Kshs Kshs Kshs. Kshs
Balance as at 01-01-2011 -- 275,670.00 (28,027.70) 1,144.00 248,786.30
Surplus before tax for the year 4,247.25 -- 4,247.25
Tax provision (133.00) -- (133.00)
Transfers to statutory reserve -- 823.00 (823.00) -- --
Issuance of shares 72,000.00 -- -- -- 72,000.00
As at 31/12/2010 72,000.00 276,493.00 (24,736.45) 1,144.00 324,900.55
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10. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2011
CASHFLOW STATEMENT
FOR THE YEAR ENDED 31/12/2011
2010 2011
Cash flow from operating activities KSHS KSHS
Interest received 473,172.53 553,147.00
Other operating income 85,000.00 --
Interest expense - (150,000.00)
Payments to employees and suppliers (349,306.25) (357,306.25)
208,866.28 45,840.75
Increase/decrease in operating assets
Prepayment and other receivables 414,084.25 (89,744.00)
Loans to members (2,237,938.33) (87,520.53)
Increase/decrease in operating liabilities
Members deposits 1,080,633.30 458,305.07
Accounts payables and other accruals (26,738.50) (262,928.50)
NET CASH FLOW FROM OPERATING ACTIVITIES (104,615.50) 245,100.00
Cash flow from investing activities -
Interest from bank - 2,500.00
Co-op Bank dividends 90,000.00
Cash flow from financing activities - -
NET INCREASE/DECREASE IN CASH AND CASH EQUIVALENT (561,093.00) 331,493.85
CASH AND CASH EQUIVALENT ON 01/01/2011 662,781.00 101,688.00
CASH AND CASH EQUIVALENT ON 31/12/2011 101,688.00 433,274.85
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11. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2011
1. ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of these financial statements are are set
out 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 Act
2. OTHER INTEREST INCOME
2011(Kshs.) 2010 (Kshs.)
Interest from bank(savings Account) 2,500.00 2,500.00
2,500.00 2,500.00
3. INTEREST EXPENSE
2011(Kshs.) 2010 (Kshs.)
Bank Charges 18,306.00 16,306.00
18,306.25 16,306.25
4. ADMINISTRATIVE COSTS
2011 2010
Kshs. Kshs.
Committee Sitting Allowance 180,000.00 180,000.00
Committee subsistence allowance 6,000.00 6,000.00
Book keeping fee 55,000.00 55,000.00
AGM Expenses 82,000.00 82,000.00
Audit fees 10,000.00 10,000.00
Supervisory fees 1,000.00 1,000.00
Recoverable expenses 200.00 200.00
Legal expenses 4,000.00 10,000.00
Education 12,000.00 -
350,200.00 344,200.00
5. OTHER OPERATING INCOME
Kshs. Kshs.
Co-operative Banks dividends 90,000.00 85,000.00
90,000.00 85,000.00
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12. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2011
6. CASH AND CASH EQUIVALENTS
2011 2010
Bank-Savings Account 120.000.00 42,895.40
Bank- current Account 313,181.85 58,792.60
11,448.00 9,749.00
7. PREPAYMENTS AND OTHER RECEIVABLES
note 2011 2010
Sun Dry debtors - 41,350.00
Debtors - ex members (17) - 334,109.00
Loan defaulters( list attached) 1,751,627.25 1,286,424.00
Lost cash (16) 180,000.00 180,000.00
1,931,627.25 1,841,883.25
8. LOANS TO MEMBERS 2011 2010
Balance b/f 6,257,541.00 4,019,603.20
Disbursement 87,520.00 2,237,938.33
6,170,021.00 6,257,541.53
9. MEMBERS DEPOSITS
2011 2010
Balance B/f 6,617,649.00 5,537,015.70
Contribution/(refunds) during the year 458,305.07 1,080,633.30
7,075,954.07 6,617,649.00
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13. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31/12/2011
10. ACCOUNTS PAYABLE AND OTHER ACCRUALS
2011Kshs. 2010 Kshs.
Audit fee 11,200.00 11,200.00
Interests on deposits 250,000 150,000.00
Provision for tax 375.00 375.00
Credotirs – Ex members 630,884 882,237.50
892,459.00 1,043,812.50
11. RESERVES
2011Kshs. 2010 Kshs.
Retained earnings (51,323.97) (72,736.72)
Statutory reserve fund 709,381.00 704,028.00
661,057.03 634,291.28
12. 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 kshs
Shares in C.I.C shares (37 sahres@ kshs 100 3,740.00 3,740.00
Shares in Co-op bank ( 2,179 shares @ Kshs 100) 217,900.00 217,900.00
Shares in Kusco (110 shares @ 100) 11,000.00 11,000.00
232,640 233,640
14. DEPOSITS AND LOANS BALANCES – CONTROL LEDGER v/s M.P AS
Shares Loans Deposits
Balance as per control ledger 138,000.00 6,170,021.00 7,075,954.00
Balance as per MPA 138,000.00 5,377,172.00 7,133,284.00
- 792,849.00 57,330.00
The differences particularly on loans are material and hence management should look for a way of
reconciling them. This must be done before the next Audit
15. INTEREST EXPENSE
This refers to proposed interest on deposit of Kshs. 250,000.00
This translates to 3.5% of the total deposits as at 31-12-2012
16. LOST CASH
As reported in the last audit, this refers to a brought forward figure. The money was stolen when the
office was broken. The matter was reported to the police. The current management should follow up
the issue til the money is recovered.
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14. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTD
ANNUAL 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
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15. CS/NO 3942 WANAMIZIGO SACCO SOCIETY LTD
ANNUAL 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
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