'.
NGS AND CREDIT
D
AND
FINANCIAL STATEMENTS
PERIOD:FORYEAR ENDED 31ST DECEMBER2008
MUEMA & ASSOCIATES
Certified Public Accountants
Afya Centre - Tom ,Mboya Street
Tenth Floor
P.O. Box 6873 - 00300
Tel. 2241764/311440
NAIROBI
I'
.
I CS/4220
USIU CO-OPERATIVE SAVINGS AND CREDIT SOCIETY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2008
STATISTICAL INFORMATION
TABLE OF CONTENTS PAGE
STATISTICAL INFORMATION SHEET 1
MANAGEMENT COMMITTEE 2
RESPONSIBILITY STATEMENT 3
AUDITORS REPORT 4
BALANCE SHEET 5
APPROPRIATION ACCOUNT 6
CASHFLOW STATEMENT 7
INCOME & EXPENDITURE ACCOUNT 8
NOTESTO THE FINANCIAL STATEMENTS 9-12
l
- .,.
CS/4220
USIU CO-OPERATIVE SAVINGS AND CREDIT SOCIETY LIMITED
STATISTICAL INFORMATION
FOR THE PERIOD ENDED 31ST DECEMBER 2008
2008 2007
224
KSHS.
Number of Members
5.7%4,570,746
35,299,724
448,000
47,206,251
40,221,921
2,876,613
322,721
366,976
2,000,000 2345.5%
332,253
275,108
45,958,669
53,479,536
40,597,807
2,528,720
5,565,170
2,233,000
468,000
Share Capital
KSHS.
page 1
I
I
-
t
CS/4220
USIU CO-OPERATIVE SAVINGS AND CREDIT SOCIETY LIMITED
THE MANAGEMENT COMMITTEE MEMBERS REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2008.
The management committee submits their reports together with the audited
accounts for the year ended 31st December 2008.
Chairman Mr. Kepha N.M Oyaro
Vice- ChairPerson Dr. Sophia Kaane
Secretary Mr. Bonface K. Koech
Treasurer Mr. Mohamed G. Muniafu
Credit Committee Mr. Moses Sule
Mr. Patrick Mulindi
Mr. Jackson Ngariba
Education Committee Mr. Uvyu C. Mbole
Mr. Eustace Nyagah
PRINCIPAL ACTIVITIES
The Society continued with its main activity of receiving savings from its members and
out of these savings, giving loans to the members for productive purposes.
RESULTS FOR THE YEAR
The Society recorded a surplus of Kshs. 68,854 during the year.
AUDITORS
MIS Muema & Associates appointed by members at the Last Annual General
Meeting have expressed their willingness to continue in office in accordance
with the provision of the Co-operative Society's Act No.12 of 2004.
BANKERS
The Co-operative Bank of Kenya Ltd.
Co-op Bank House Branch. Nairobi
BY QRDER OF THE MANAGEMENT COMMITTEE
MrUBonface Koech
ARY
SEctRET
page 2
CS/4220
USIU CO-OPERATIVE SAVINGS AND CREDIT SOCIETY LIMITED
STATEMENT OF THE MANAGEMENT COMMITTEE RESPONSIBILITIES
FOR THE YEAR ENDED 31ST DECEMBER 2008.
The Co-operatives Societies Act require the management committee to prepare
accounts for each fiscal period, which give a true and fair view of the state of financial
affairs of the society at the end of the financial year, and its operating results.
It also requires the management committee to ensure that the society keeps proper
accounting records which disclose with reasonable accuracy at any time, the financial
position of the society. They are also responsible for safeguarding the assets of the society.
The management committee accept responsibilities for the annual accounts, which have been
prepared using appropriate accounting policies supported by responsible and prudent judgements
and estimates, in conformity with generally accepted accounting practice and in manner required
by the Co-operative Societies Act.
The management committee are of the opinion that the accounts give a true and fair view of the
state of the financial affairs of the society and the operating results.
The management committee further accept responsibility for the maintenance of accounting
records which may be relied upon in the preparation of accounts, as well as adequate systems
of internal controls.
Nothing has come to the attention of the management committee to indicate that the society
will not remain a going concern for at least twelve months from the date of this statement.
CHAIRMAN
SECRETARY
Date ..•..
Date )?$.7?'.:~.
PJ~~. ~!c?:o.
TREASURER Date
~.) \~1u7 .
page 3
REPORT OF THE INDEPENDENT AUDITORS
FOR THE YEAR ENDED 3151 DECEMBER 2008.
TO THE MEMBERS OF
CS/4220 - USIU- A CO-OPERATIVE SAVING AND CREDIT SOCIETY LIMITED
We have audited the accompanying financial statements of USIU- A Co-operative Savinq and Credit
Society Limited, set out on pages 5 - 12, which comprise of the balance sheet as at 315t December 2008,
and the income statements, appropriation account cash flow statement for the year then ended, and a
summary of significant accounting policies and other explanatory notes.
MANAGEMENT COMMITTEES' RESPONSIBILITIES 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 Co-
operative Societies' Act. This responsibility includes: designing ,Implementing and maintaining internal
controls relevant to the preparation and fair presentation of financial statements free of 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 Responsibilitv
Our responsibility is to express opinion on these financial statements based on our audit.. We conducted our
•
audit in accordance with International Standards on Auditing. These standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial
statements are free of material misstatement.
•
An audit involves performing procedures to obtain audit evidence about the amount and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, 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 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
audit opinion.
•
•
OPINION
In our opinion, Except for the matter referred to in the preceding paragraph and the adjustments that may be
necessary, if any, the financial statements give a true and fair view of the state of the society's financial affairs
•
as at 315 December 2008, and of its surplus and cash flows for the year then ended and •.omply with the
International Financial Reporting Standards and the requirements of the Kenyan Co-operative Societies' Act.
REPORT ON OTHER LEGAL REQUIREMENTS
•
As required by the Kenyan Co-operative Societies' Act. we report to you, based on our Audit, that:
i) We have obtained all the information and explanations which to the best of our knowledge and belief
were necessary for the purposes of our audit;
ii) In our opinion proper books of account have been kept by the society, so far as appears from our
•
examination of those books; and
The Society's balance sheet and income statement are in agreement with the books of account
~
•
•
MUEMA & ASSOCIAT
CERTIFIED PUBLIC ACCOUNTANTS
TEL: 2241764
P.O.BOX 6873 - 00300
•
NAIROBI.
Date ~ Day .~ ( 2009
Page 4
III
•
• CS/4220
USIU CO-OPERATIVE SAVINGS AND CREDIT SOCIETY LIMITED
•
BALANCE SHEET
AS AT 31ST DECEMBER 2008
2008- 47,341,067
2,922,331
KSHS
195
2007
1
79,10073,500
45,958,66940,221,921
1,809,268,562,484
134,816
282,904326,162
5,254,4002,099,658
101,729134,816
47,206,251 NOTES
[2]
[6]
[5]
[16]
[4]
[3]
[7] KSHS 195
95,000
53,479,536
53,581,265
KUSCCO
Shares in& Equipments
Property
•
III
III
III
• EQUITY & LIABILITIES
Current liabilities ~
206,468
Payables & Accruals [~~O 27~,532 19,615
• . Taxation Savings Scheme
Holiday ~.-::. ~;rt~SJ.·
\ 0J!7-l" r \\'\:.\\;\\~'2 ' 188
~'i~ - 650,530
Interest on Member's Deposit v;.\:::-,\(.f\r'0\ '2] .~ 2233 00 2,000,000
2,876,613
• .Y'~
Total Current Liabilities \ ,-(.\..1.1) ~t,,", j"" . 2 528 7 0
, Capital, Reserves & Liabih ies ~ ~ .' '~t:.~ yO~ £.~_
Share Capital ~,'. ~ 't:.\Jt.\"O.,' l?~ 448,000
322,721
• Statutory Reserves \;'0' ~ \) 32,253 162,878
, Entrance Fees r::Jy\:Rt. ' 191,878
Members Deposits 40,597,807 35,299,724
366,976
Co-op Bank Loan [18] 9,187,499 1,333,333
• Appropriation Account 275,108
. KUSCCO (CF,P) Loan (Education) [15] 3,613,392
•
KUSCCO (CF,P) Loan [14] 2,917,430
51,052,545 44,464,454
• Total Capital, Reserve & Liabilities
TOTAL EQUITY & LIABILITIES 53,581,265 47,341,067
- The notes on pages 9 to 12 form an integral part of these accounts.
• The accounts set o~ p,ges 5;0 2009 and signed on its behalf by;
Committee on .. f:.:.w./?J.J 8 were approved by the Management
• ~.YJ;iJ ..
:) Chairman
•
............ ~.,.. ) Secretary
• ~ : ) Treasurer
•
•
page 5
II
III
II
II CS/4220
USIU CO-OPERATIVE SAVINGS AND CREDIT SOCIETY LIMITED
APPROPRIATION ACCOUNT
II FOR THE YEAR ENDED 31ST DECEMBER 2008.
2008
II
2007
Notes KSHS. KSHS.
II Balance B/F
366,976 296,196
II Surplus for the Year 68,854 116,383
II Corporation Tax
[9] (21,190)
414,640
(19,615)
392,964
II Transfer to Statutory Reserves(20%) [11] (9,533) (19,354)
• (After tax)
Prior year adjustments [21] (6,634)
•
•
•
Provision for Honorarium
Balance C/F
(130,000)
275,108 366,976
•
•
•
•
page 6
•
C5/4220
U5IU CO-OPERATIVE SAVINGS AND CREDIT SOCIETY LIMITED
CA5HFLOWSTATEMENT
FORTHE YEAR ENDED 31ST DECEMBER 2008.
2008 Kshs
2007
116,383
198,314
48,000
6,323,522
1,333,333
882,982
226,730
45,765
49,000
551,190
650,530
(10,569,225)
64,582 ,486)
(77
(9,688,639)
(9,618,657)
(9,568,602)
(5,400)
1,043,751
2,177,144
3,613,392
(9,683,239)
2,099,658
(64,582)
24,390
(43,421)
(4,334,519)
Kshs
107,041
(5,736,748) )
29,000
7,854,164
(5,285,385)
(5,305,000)
5,100
20,000
(3,613,392)
(246,784
(650,530)
2,922,331
5,384,400
(5,310,100) 233,000
(2,917,430)
68,064
3,284,742
2,099,658
(19,615)
(95,000) 1,160
(6,634)
(5,410,700)
Cashflow from operatina activities 33,087
5,254,400
68,854
(5,600)
Net surplus/(Deficit) before taxation 5,298,083
43,258
(5,100)
Adiustments for:
Depreciation
Bank charges
Operating profit before working capital changes
ChanQesin workina capital
Decrease in Receivables & Prepayments
Decrease/(Increase) in members loans
(Decrease)/increase in interest on members deposits
(Decrease)/Increase in creditors & accruals
Cashinflow from operations
Prior year adjustments
Taxation
Net cash inflow after operating activities
Return on investment & servicina of finance
Bank charges
Net cash inflow after invest & servicing of finance
InvestinQ activities
Increase in shares in Kuscco Ltd
Shares in Co-op. Bank
Net cash outflow after investing activities
FinancinQactivities
Increase in members deposit
Increase in kuscco-Education Savings
Increase in kuscco-CFP Savings
Increase in share capital
Increase in Entrance Fees
Holiday scheme savings
Holiday scheme
Co-op Bank Loan
KUSCCOLoan- Education
KUSCCO(C.F.P) Loan
Net cash outflow after Financing activities
Cash & Cash equivalent at the beginning of the year
Cash & cash equivalent at the end of the year
page 7
. and Stationery
Printing100,000
3,000
49,544
4,000
28,825 -
-- I..
2007
KSHS.
KSHS. 6,750
3,800
33,087 9,000
739,276
2,000,000
209,600
45,200
14,334
620,200
10,078
2,100
14,000
4,439,979
5,400
45,765
36,000
18,613
30,000
163,768
64,582
4,800
32,913
70,570
208,884
8,800
2,233,000
10,000
21,529
4,570,746
116,383
4,454,363 Notes
[20][2] 5,496,316 56
4,800
5,100
792,944
6,650
4,400
18,000
166,000
5,760
428,602
24,331
677,920
362,000
60,000
14,000
25,336
36,000
57,540
33,400
13,150
80,000
12,500
3,800
8,395
5,600
1,300
186,542
5,423,904
185,592
131,798
2,500
5,565,170
17,479
68,854
USIUTHE YEAR ENDED SAVINGS AND CREDIT
FOR CO-OPERATIVE
INCOME AND EXPENDITURE DECEMBER 2008. SOCIETY
Salaries and Wages
CS/4220 31ST ACCOUNT LIMITED
2008
page 8
l_
",S/4220
USIU CO-OPERATIVE SAVINGS AND CREDIT SOCIETY LIMITED
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31ST DECEMBER 2008.
[1] ACCOUNTING POLICIES
a) Accounting period
The society prepares its accounts for a period of twelve (12) months ending
31st December, every year.
b) Accounting Convention
The financial statements are prepared on the historical cost concept.
c) Statutory Reserves
Transfers are made to the statutory reserves fund at a rate of 20% of the net operating
Surplus before taxation in accordance with the Co-operative Societies Act No. 12 of 2004.
d) Turnover
Turnover represents interest charged on loans advanced to members and interest
received from Bank other related sources.
e) Depreciation
Depreciation is calculated at annual rates estimated to write off each asset over the
terms of its useful life. The basis and rates at which depreciation has been calculated
are as follows:-
Office Equipment's 12.5%
Computers& computer software 30%
f) Currency
The accountsare expressed in Ksh.(Kenya shillings) Currency which is the official
currencyof the republic of kenya.
[2]. FIXED ASSETS
Total
Kshs
134,816
101,729
341,884
315,531
Computer
92£769
374,971
343,362
27,831
33,087
408,300
476,700
64,938 Office
Kshs
36,791
68,400
26,353
42,047
31,609
5,256
68,400
As at 31/12/2008
As at 1/1/2008
Equipment
at 31/12/2008
page 9
!
Dividends -
Current Odipo Deposit
2,922,331Account issued of Ksh.(3,519,261) should be reconciled.
Telephone accrued
Kephers
count 10,078 Ogal
Mr. 4,000
170,832
30,000
31,422
17,650
Richard 3,700
certificate
KSHS --This
4,567.(680)
III
2007
206,468
8,935
CS/42204,000 (sacco
1,167
(882,982)
21,837
55,362
68,100
33,326
(680)
326,162
2,180
27,534
3,805,313
14,334
45,560
40,221,921
60,580
2,034,910 KSHS
130,000
7,305
1,167
16,826
55,362
1,000
73,500
4,695
282,904
21,837
27,534
2,180
208,153
2,922,331
45,958,669
29,417
11,117
596,930
45,560 27,833
2008 27,729
[7] Tai Solutions Mwawai master CREDIT95,000
Cash (40,221,921)
5,400
2,099,658
Loan 73,500 Equivalents
25,380
(45,958,669)
5,224,983
5,600
95,000
5,254,400
79,100
[5]Accountancy Services AND software) SOCIETY LIMITED 10
•
Toki
Sammy&to Members
Cash
USIU CO-OPERATIVE
Additionsb/f handcontrol SAVINGS
FOR THEin THE Muragu 31ST DECEMBER 2008.
Cash YEAR
BalanceKinandu ACCOUNTS Recoverables
NOTES TO perSupervision &
Audit fees, ENDED
Balance b/f
Mr.
Opening Balance page
II
I
8] Payable & Accruals
the cash
•
••-~~----II!!!!!!!!!!!!!!!!!!!!!!!!_----------------_-.I
..
CS/4220
'
USIU CO-OPERATIVE SAVINGS AND CREDIT SOCIETY LIMITED
NOTES TO THE ACCOUNTS
FOR THE YEAR ENDED 31ST DECEMBER 2008.
2008 2007
KSHS
19,615
43,421
162,878
448,000
322,721
113,878
35,299,724
303,367
(43,421)
49,000
19,354
(35,299,724)
KSHS
21,188
191,878
332,253 ,807)
21,188
(19,615)
29,000
9,533
(40,597
[9] Taxation account 19,615
40,597,807
Balance b/f 468,000
322,721
162,878
Provisions for the year
Payments during the year
[10] Share Capital
[11] Statutory Reserves
Balance b/f
Additions for the year
Totals
[12] Entrance fees
Balance b/f
additions
[13] Members Deposit
Balance as per control
Balance as per schedule
[14] Loan from KUSCCO
Balance b/f 2,917,430 7,251,949
Additions during the year
Payments during the year (2,917,430) (4,334,519)
2,917,430
• [15] LOANS FROM KUSCCO C.F.P (EDUCATION)
Bal b/f 3,613,392
•
• Additions 4,000,000
Payments (3,613,392) (386,608)
3,613,392
[16] SAVINGS IN KUSCCO EDUCATION SCHEME
Balance b/f 1,562,484 2,606,235
t
Additions during the year 246,784 (1,043,751)
Totals 1,809,268 1,562,484
••
• page 11
I
•
•
C5/4220
U5IU CO-OPERATIVE SAVINGS AND CREDIT SOCIETY LIMITED
NOTESTO THE ACCOUNTS
FORTHE YEAR ENDED 31ST DECEMBER 2008.
2008 2007
KSHS KSHS
n
[17] HOLIDAY SAVINGS SCHEME
Bonfas Salano 30,900
1
Lydia Masinde 98,800
Mrs. Ritah Asunda 468,000
Dr. Sophia Kaane 52,830
Totals 650,530
[18] CO-OP BANK LOAN
Balance bjf 1,333,333
Additions during the year 15,000,000 2,000,000
Payments during the year (7,145,834) (666,667)
Totals 9,187,499 1,333,333
[19] Interest on member's deposits 2,233,000 2,000,000
This was a provision for the year which requires members' resolution in the AGM on where the funds
should be taken.
page 12