summary financial statements 2019/20 · 2020. 9. 15. · abraham kriel bambanani npc is approved by...

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SUMMARY FINANCIAL STATEMENTS 2019/20

ABRAHAM KRIEL BAMBANANI INTEGRATED REPORT 202047

SUMMARy FINANCIAL STATEMENTS

To the Members of Abraham Kriel Bambanani NPC

Opinion

The summary financial statements of Abraham Kriel Bambanani NPC, set out on pages 48

to 53, which comprise the summary statement of financial position as at 31 March 2020,

the summary statements of profit or loss and other comprehensive income, changes in

equity and cash flows for the year then ended, and related notes, are derived from the

audited financial statements of Abraham Kriel Bambanani NPC for the year ended 31

March 2020.

In our opinion, the accompanying summary financial statements are consistent, in

all material respects, with the audited financial statements, in accordance with the

International Financial Reporting Standards (IFRS) and the requirements of the Companies

Act of South Africa as applicable to summary financial statements.

Summary Financial Statements

The summary financial statements do not contain all the disclosures required by

International Financial Reporting Standards and the requirements of the Companies Act of

South Africa as applicable to annual financial statements. Reading the summary financial

statements and the auditor’s report thereon, therefore, is not a substitute for reading

the audited financial statements and the auditor’s report thereon. The summary financial

statements and the audited financial statements do not reflect the effects of events that

occurred subsequent to the date of our report on the audited financial statements.

The Audited Financial Statements and Our Report Thereon

We expressed an unmodified audit opinion on the audited financial statements in our

report dated 7 July 2020.

Director’s Responsibility for the Summary Financial Statements

The directors are responsible for the preparation of the summary financial statements

in accordance with the International Financial Reporting Standards (IFRS) and the

requirements of the Companies Act of South Africa as applicable to summary financial

statements.

Auditor’s Responsibility

Our responsibility is to express an opinion on whether the summary financial statements

are consistent, in all material respects, with the audited financial statements based on our

procedures, which were conducted in accordance with International Standard on Auditing

(ISA) 810 (Revised), Engagements to Report on Summary Financial Statements.

PricewaterhouseCoopers Inc.

Director: C Marais Roux

Registered Auditor

Johannesburg

24 August 2020

Independent auditor’s report on the summary financial statements


sUmmARY stAtEmENt OF FINANCIAL POsItION as at 31 march 2020

2020 2019ASSETS R RNon-Current AssetsProperty, plant and equipment 13,639,890 13,526,184 13,639,890 13,526,184

Current AssetsInventories 95,290 89,115Loans to related parties 485,705 440,290Trade and other receivables 271,456 146,906Cash and cash equivalents 13,107,844 11,606,449 13,960,295 12,282,760

Total Assets 27,600,185 25,808,944

Equity and LiabilitiesEquityReserves 14,309,304 14,825,163Retained income 4,869,118 3,676,272 19,178,422 18,501,435

LiabilitiesNon-Current LiabilitiesBorrowings – 75,000Finance lease liabilities 234,256 430,935Retirement benefit obligation 2,418,387 2,499,207 2,652,643 3,005,142

Current LiabilitiesTrade and other payables 2,776,814 3,726,228Borrowings 75,000 450,000Finance lease liabilities 133,354 126,139Deferred income 2,783,952 – 5,769,120 4,302,367

Total Liabilities 8,421,763 7,307,509Total Equity and Liabilities 27,600,185 25,808,944


Summarised audited annual financial statements for the year ended 31 March 2020

Prepared by: Mahdi Meyer Steyn Chartered Accountants Inc (Director: T. Kluyts)

A copy of the audited annual financial statements can be obtained at the registered office of the company.



sUmmARY stAtEmENt OF PROFIt OR LOss AND OthER COmPREhENsIVE INCOmEfor the year ended 31 march 2020 Note 2020 2019 R R

Revenue 3 44,650,687 43,856,609Operating expenses 4 (45,582,316) (42,319,637)Operating (loss)/profit (931,629) 1,536,972Investment income 504,309 704,456Finance costs (317,568) (285,238)Other income 990,980 378,055

Profit before taxation 246,092 2,334,245taxation 5 – –Profit for the year 246,092 2,334,245

Other comprehensive income:designated funds transferred:(to) reserves (852,116) (560,862)from reserves 1,367,975 124,599Total designated funds transferred 515,859 (436,263)Remeasurement of retirement benefit obligation 430,895 365,349Total comprehensive profit for the year 1,192,846 2,263,331

sUmmARY stAtEmENt OF CAsh FLOWsfor the year ended 31 march 2020 Note 2020 2019 R R

Cash flows from operating activitiesCash generated from operations 6 2,585,185 3,927,255Investment income 504,309 704,456Finance costs (42,655) (285,238)Net cash from operating activities 3,046,839 4,346,473

Cash flows used in investing activitiesPurchase of property, plant and equipment (1,333,637) (2,556,760)Proceeds from sale of property, plant and equipment 473,072 64,572Increase in loans to related parties (45,415) (117,842)Net cash used in investing activities (905,980) (2,610,030)

Cash flows (used in)/from financing activitiesNet movement on borrowings (450,000) –(Decrease)/increase in finance leases (189,464) 271,200Net cash from/(used in) financing activities (639,464) 271,200

Total cash movement for the year 1,501,395 2,007,643Cash at the beginning of the year 11,606,449 9,598,806Total cash and cash equivalents at end of the year 13,107,844 11,606,449


sUmmARY stAtEmENt OF ChANGEs IN EQUItY for the year ended 31 march 2020 Reserves Retained Income total Equity R R RBalance at 01 April 2018 14,388,900 1,412,941 15,801,841Profit for the year – 2,334,245 2,334,245Remeasurement of retirement benefit obligation – 365,349 365,349Other transfers between reserves 436,263 (436,263) –

Total movement 436,263 2,263,331 2,699,594Balance at 31 March 2019 14,825,163 3,676,272 18,501,435Profit for the year – 246,092 246,092Other transfers between reserves (515,859) 515,859 –Remeasurement of retirement benefit obligation – 430,895 430,895

Total movement (515,859) 1,192,846 676,987Balance at 31 March 2020 14,309,304 4,869,118 19,178,422

NOtEs tO thE sUmmARY FINANCIAL stAtEmENts for the year ended 31 march 2020

1. Basis of preparationThe summary financial statements should be read in conjunction with the full set of audited financial statements which is available at the Company’s registered office. The summary financial information has been prepared in accordance with International Financial Reporting Standards (IFRS), IAS 34, Interim Financial Reporting, and interpretations of those standards (as adopted by the International Accounting Standards Board) and applicable legislation (requirements of the South African Companies Act). The summary financial information is presented in South African Rands which is the Company’s functional currency.

2. Accounting policiesThe summary financial statements have been prepared under the historical cost convention. The principal accounting policies used by the Company are in terms of IFRS and are consistent with those of the previous period. The same accounting policies and methods of computation are followed in these summary financial statements as compared with the most recent annual financial statements. Implementation of new accounting policies – IFRS 16 – Leases The contracts entered between Abraham Kriel Bambanani NPC and various parties for the right of use of various buildings does not have a limitation on the time period. It is therefore deemed that Abraham Kriel Bambanani NPC has the right to use these buildings for a perpetual period.

In order to qualify as a lease, IFRS 16 requires that an arrangement conveys a right to use an identified asset for a ‘period of time’. However, as IFRS 16 does not define the term ‘period of time’, it is not clear whether perpetual use rights are covered by that term. Management has thus applied judgment to assess whether the perpetual use rights are over a specified “period of time” or not. Management has considered the substance of the contracts and assessed whether there are any factors that may indicate the right of use is not perpetual. The contracts cannot be terminated by merely stopping the payments to the counterparties or through any other means. Therefore, management is of the view that the perpetual rights of use are not over a ‘period of time’, and so these contracts do not meet the definition of a lease in accordance with IFRS 16.





3. New standards and InterpretationsImplementation of IFRS 16 – Leases:The contracts entered between Abraham Kriel Bambanani NPC and various parties for the right of use of various buildings does not have a limitation on the time period. It is therefore deemed that Abraham Kriel Bambanani NPC has the right to use these buildings for a perpetual period. In order to qualify as a lease, IFRS 16 requires that an arrangement conveys a right to use an identified asset for a ‘period of time’. However, as IFRS 16 does not define the term ‘period of time’, it is not clear whether perpetual use rights are covered by that term.

Management has thus applied judgment to assess whether the perpetual use rights are over a specified “period of time” or not. Management has considered the substance of the contracts and assessed whether there are any factors that may indicate the right of use is not perpetual. The contracts cannot be terminated by merely stopping the payments to the counterparties or through any other means. Therefore, management is of the view that the perpetual rights of use are not over a ‘period of time’, and so these contracts do not meet the definition of a lease in accordance with IFRS 16.

2020 2019 R R4. RevenueChurch funding 818,320 848,129Corporate funding income 8,134,192 9,800,514Donor funding 14,432,076 16,792,298Fees for services 857,547 838,461Income from ventures 1,354,826 977,490Legacies and bequests 1,638,081 227,501State funding 17,415,645 14,372,216 44,650,687 43,856,609All donations in kind are recognised on the date of receipt at a nil value.

2020 2019 R R5. Operating ExpensesPersonnel expenditure 26,249,889 24,741,854Household and service expenditure 9,888,736 8,848,253Property expenditure 5,104,596 4,417,524Office and administrative expenditure 3,125,911 3,240,592Depreciation 1,213,184 1,071,414 45,582,316 42,319,637



6. taxationAbraham Kriel Bambanani NPC is approved by the Commissioner for SARS as a public benefit organisation in terms of section 30 of the Income Tax Act. Its receipts and accruals are thus exempt from income tax, to the extent that the tax exemption in section 10(1)(cN) of the Income Tax Act, may be applied. No provision was made for any income tax liability in the current financial year on the basis that the company did not have any taxable income. 2020 2019 R R7. Cash generated from operationsProfit before taxation 246,092 2,334,245

Adjustments for:Depreciation 1,213,184 1,071,414Investment income (504,309) (704,456)Finance costs 42,655 285,238Movements in retirement benefit obligation (80,820) 8,272Movement in deferred revenue 2,783,952 (1,681,062)Profit on sale of asset (473,072) (64,572)Movement in other comprehensive income – 365,349

Changes in working capital:Inventories (6,175) (8,102)Trade and other receivables (124,550) 1,785,581Trade and other payables (511,772) 535,348 2,585,185 3,927,255

8. Going concernThe directors believe that the company has adequate financial resources to continue in operation for the foreseeable future and accordingly the annual financial statements have been prepared on a going concern basis. The directors have satisfied themselves that the company is in a sound financial position and that it has access to sufficient borrowing facilities to meet its foreseeable cash requirements. The directors are not aware of any new material changes that may adversely impact the company. The directors are also not aware of any material non-compliance with statutory or regulatory requirements or of any pending changes to legislation which may affect the company. The committee reviewed the 2020/2021 budget and held discussions with management. It reported to the board that it supported the view of management that, notwithstanding the impact of COVID-19 on the entity, the company will still be a going concern for the foreseeable future.

9. Covid-19The Covid-19 outbreak caused certain uncertainties to Abraham Kriel Bambanani NPC. The marketing department expects R1.7 million less income than budgeted for the 2021 financial year. Certain fundraising events had to be cancelled and converted into virtual campaigns to mitigate the risk of loss of income. The current economic position of our country has a direct negative impact on fundraising. However, Abraham Kriel Bambanani NPC received a positive response to marketing campaigns for the first two months of the 2021 financial year and exceeded budget by R1.4 million. The additional income was welcomed as it will assist with the increased need that arose as a result of the pandemic. The organisation also received significant donations to assist with the procurement of PPE for staff and beneficiaries to adhere the Covid-19 health and safety regulations. We have implemented a COVID-19 risk strategy and a health and safety plan to address industry identified risks. The implementation of thereof is monitored closely by a response team.




The organisation receive the support of the Department of Social Development. The absence of increases in grants for the 2021 year will direct the measures we put in place in respect of expenditure and cash flow. The delay of staff remuneration increases to the value of R1.2 million potentially reduce expenses for the year and will be reviewed monthly after the first quarter. We implemented significant changes to the community service programmes, providing food parcels instead of warm meals, and reducing psycho-social services in the interim. The adjusted approach is more cost effective and therefore results in a reduction of expenses.

10. Restatement of defined contribution plansComparative figures have been restated to ensure that the various line items, being effected by the movements on the defined contribution plan, are disclosed separately as shown below:

Statement of profit and loss and other comprehensive income Previously reported Reclassification Restated(extract) 31 March 2019 (R) (R) 31 March 2019 (R)

Statement of profit or loss Operating Expenses (42,203,382) (116,255) (42,319,637)Finance Costs (36,144) (249,094) (285,238)Profit of the Year 2,699,594 (365,349) 2,334,245

Other comprehensive incomeRemeasurement of retirement benefit obligation – 365,349 365,349

Total comprehensive profit for the year 2,263,331 – 2,263,331

Statement of changes in equity (extract) Retained Income Retained Income Retained Income Previously Reported Reclassification Restated 31 March 2019 (R) (R) (R)Profit for the year 2,699,594 (365,349) (2,334,245)Remeasurement of retirement benefit obligation – 365,349 365,349Other transfers between reserves (436,263) – (436,263)Total movement 2,263,331 – 2,263,331

No adjustments have been made to the Statement of financial position or Statement of cash flow as the restatement had no impact.


summary financial statements 2019/20 · 2020. 9. 15. · abraham kriel bambanani npc is approved by...

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