FINANCIAL STATEMENTS
Report of the Independent Auditors
We have audited the accompanying financial statements of the Historic Schools Restoration Project
(Association Incorporated under Section 21), which comprise the directors’ report, the balance sheet as at
31 March 2008, the income statement, the statement of changes in equity and cash flow statement for the
15 months then ended, a summary of significant accounting policies and other explanatory notes, as set
out on pages 5 to 17 of the comprehensive financial statements.
Directors’ Responsibility for the Financial Statements
The company’s directors are responsible for the preparation and fair presentation of these financial
statements in accordance with South African Statements of Generally Accepted Accounting Practice, and
in the manner required by the Companies Act of South Africa, 1973. 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.
Auditors’ 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 auditors’ 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 the directors, 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 company as of 31 March 2008, and of its financial performance and its cash flows for the 15 months
then ended in accordance with South African Statements of Generally Accepted Accounting Practice, and
in the manner required by the Companies Act of South Africa, 1973.
Gobodo Incorporated
Registered Auditors
16 May 2008
Directors’ Responsibilities and Approval
The directors are required by the Companies Act of South Africa, 1973, to maintain adequate accounting
records and are responsible for the content and integrity of the financial statements and related financial
information included in this report. It is their responsibility to ensure that the financial statements fairly
present the state of affairs of the company as at the end of the financial 15 months and the results of
its operations and cash flows for the period then ended, in conformity with South African Statements of
Generally Accepted Accounting Practice. The external auditors are engaged to express an independent
opinion on the financial statements.
The financial statements are prepared in accordance with South African Statements of Generally
Accepted Accounting Practice and are based upon appropriate accounting policies consistently applied
and supported by reasonable and prudent judgments and estimates.
The directors acknowledge that they are ultimately responsible for the system of internal financial
control established by the company and place considerable importance on maintaining a strong control
environment. To enable the directors to meet these responsibilities, the board sets 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 company and all employees are required to maintain the highest ethical standards in
ensuring the company’s business is conducted in a manner that in all reasonable circumstances is above
reproach. The focus of risk management in the company is on identifying, assessing, managing and
monitoring all known forms of risk across the company. While operating risk cannot be fully eliminated,
the company endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems
and ethical behaviour are applied and managed within predetermined procedures and constraints.
The directors 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
directors have reviewed the company’s cash flow forecast for the year to 31 March 2009 and, in the light
of this review and the current financial position, they are satisfied that the company has or has access to
adequate resources to continue in operational existence for the foreseeable future.
The external auditors are responsible for independently reviewing and reporting on the company’s
financial statements. The financial statements have been examined by the company’s external auditors
and their report is presented on page 24.
The financial statements, which have been prepared on the going concern basis, were approved by the
Board on 16 May 2008 and were signed on its behalf by:
Historic Schools Restoration Project (Association Incorporated under Section 21)
(Registration number 2007/018649/08)
Financial Statements for the 15 months ended 31 March 2008
Balance Sheet
Figures in Rand | 2008 |
|
Assets |
Non-Current Assets |
Property, plant and equipment | 166,218 |
Current Assets |
Trade and other receivables | 100,000 |
Cash and cash equivalents | 7,524,814 |
| 7,624,814 |
Total Assets | 7,791,032 |
|
Equity and Liabilities |
Equity |
Retained income | 1,684,865 |
Liabilities |
Non-Current Liabilities |
Deferred income | 6,000,000
| Current Liabilities |
Trade and other payables | 92,899 |
Provisions | 13,268 |
106,167 |
|
Total Liabilities | 6,106,167 |
|
Total Equity and Liabilities | 7,791,032 |
Income Statement
Figures in Rand | 2008 |
Revenue | 4,501,865 |
Operating expenses | (3,009,209) |
|
Operating surplus | 1,492,656 |
Investment revenue | 192,209 |
|
Surplus for the 15 months ended 31 March 2008 | 1,684,865 |
Historic Schools Restoration Project (Association Incorporated under Section 21)
(Registration number 2007/018649/08)
Financial Statements for the 15 months ended 31 March 2008
Detailed Income Statement
Figures in Rand | 2008 |
Revenue |
Grant income | 4,501,865 |
|
Other income |
Interest received | 192,209 |
|
Operating expenses |
Accommodation | (106,149) |
Advertising | (16,280) |
Bank charges | (8,363) |
Catering costs | (506,230) |
Computer expenses | (97,114) |
Consulting and professional fees | (286,300) |
Depreciation, amortisation and impairments | (19,148) |
Donations | (25,000) |
Employee costs | (1,242,820) |
Entertainment | (1,029) |
General expenses | (18,207) |
Gifts and flowers | (1,737) |
Honorarium | (3,781) |
Insurance | (9,750) |
Lease rentals on operating lease | (102,620) |
Legal expenses | (532) |
Meeting expenses | (10,470) |
Office expenses | (7,068) |
Postage | (2,535) |
Printing and stationery | (38,207) |
Telephone and fax | (31,952) |
Travel – local | (473,917) |
|
| (3,009,209) |
|
Surplus for the 15 months ended 31 March 2008 | 1,684,865
|
|