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TABLE OF CONTENTS
NOTICE OF THE 14TH ICPSK BENEVOLENT FUND AGM…………………2
TABLE OF CONTENTS
MINUTES OF THE ICPSK BENEVOLENT FUND AGM 2015………............3-7
NOTICE OF THE 14TH ICPSK BENEVOLENT FUND AGM…………………2
TRUSTEES REPORT……………………………………………………………..8-9
MINUTES OF THE ICPSK BENEVOLENT FUND AGM 2015………............3-7
FINANCIAL STATEMENTS……………………………………………………10
TRUSTEES REPORT……………………………………………………………..8-9
FINANCIAL STATEMENTS……………………………………………………10
1
1
MAY 5, 2016
NOTICE IS HEREBY GIVEN THAT THE 14TH ANNUAL GENERAL MEETING OF
THE ICPSK BENEVOLENT FUND WILL BE HELD ON TUESDAY, MAY 31, 2016,
AT THE CPS GOVERNANCE CENTRE, KILIMANJARO ROAD, UPPER HILL,
MAYAT
5, 2016
STARTING
10.00 A.M.
NOTICE IS HEREBY GIVEN THAT THE 14TH ANNUAL GENERAL MEETING OF
THE ICPSK BENEVOLENT FUND WILL BE HELD ON TUESDAY, MAY 31, 2016,
AT THE CPS GOVERNANCE CENTRE, KILIMANJARO ROAD, UPPER HILL,
AGENDA
STARTING AT 10.00 A.M.
1. To note the presence of a quorum and the meeting as properly convened and
constituted.
AGENDA
2. The Honorary Secretary to read the notice convening the meeting.
th the meeting as properly convened and
1. To note
presence
of a quorum
3. To consider
and the
adopt
the minutes
of the 13and
Annual General Meeting held on
May 15,constituted.
2015.
2. The consider
Honoraryand
Secretary
to read
the of
notice
convening
4. To receive,
adopt the
Board
Trustees
Reportthe
onmeeting.
the activities of
the Fund for the year ended December 31, 2015.
3. To consider and adopt the minutes of the 13th Annual General Meeting held on
Mayconsider
15, 2015.and adopt the Audited Financial Statements of the Fund for
5. To receive,
the period ended December 31, 2015.
4. To receive, consider and adopt the Board of Trustees Report on the activities of
the Fund
for the year
ended December
31, 2015.Fund for the financial year
6. To consider
and appoint
the auditor
of the Benevolent
2016.
5. To receive, consider and adopt the Audited Financial Statements of the Fund for
the period
ended business
Decemberthat
31, can
2015.be transacted at an Annual General
7. To consider
any other
Meeting and for which a notice shall have been given to the Honorary Secretary
6. To
consider
andmeeting.
appoint the auditor of the Benevolent Fund for the financial year
within
48 hours
to the
2016.
7. To consider any other business that can be transacted at an Annual General
Meeting and for which a notice shall have been given to the Honorary Secretary
within 48 hours to the meeting.
FCS. John K. Mburugu
Hon. Secretary
FCS. John K. Mburugu
Hon. Secretary
2
2
THE 13TH ANNUAL GENERAL MEETING OF THE ICPSK BENEVOLENT FUND
HELD ON FRIDAY, MAY 15, 2015, AT THE CPS GOVERNANCE CENTRE,
KILIMANJARO ROAD, UPPER HILL, STARTING AT 10.00 A.M.
PRESENT
THE 13TH ANNUAL GENERAL MEETING OF THE ICPSK BENEVOLENT FUND
HELD ON FRIDAY, MAY 15, 2015, AT THE CPS GOVERNANCE CENTRE,
KILIMANJARO
TRUSTEESROAD, UPPER HILL, STARTING AT 10.00 A.M.
PRESENT
NAME
CS. Florence Njeri Mungai
CS. John Bernard Nthuku
TRUSTEES
CS. Jane Wanja Muthaura
CS. Symon Mugo Mbanya
NAME
CS. Florence
Njeri Mungai
IN-ATTENDANCE
CS. John Bernard Nthuku
CS. Jane
Muthaura
CS. Wanja
John Mburugu
CS. Symon
Mugo
Mbanya
Mr. Elvis
Ogeto
CS. Emily S. S. Mugonyi
IN-ATTENDANCE
REG. NO.
0969
Ag. Chairperson
0033
Trustee
0916
Truste
1328
Trustee
REG. NO.
0969
Ag. Chairperson
0033
Trustee
0916 0755
TrusteHon. Secretary
1328 Trustee
Senior Manager, RSM Ashvir
2919
Taking Minutes
CS. John Mburugu
0755
NAME
REG. NO.
Mr. Elvis Ogeto
CS. Emily
S. S.Erastus
Mugonyi
2919 0001
1. CS.
K. Gitau
2. CS. Joe M. Mbuthia
0020
3. CS. Zachariah Kiragu Ndung'u 0043
4. CS. Gilbert Oduor Otieno
0045
NAME
REG. NO.
5. CS. Catherine Fisher
0174
1. CS.
K. GitauO. Oduor Osia0001 0181
6. Erastus
CS. Jeckonia
2. CS.
Mbuthia
7. Joe
CS.M.Patrick
Sau Mutemi 0020 0406
3. CS.
Ndung'u
0043 0508
8. Zachariah
CS. PeterKiragu
Kamande
Macharia
4. CS.
Oduor
OtienoKipkoriri0045
9. Gilbert
CS. Dr.
Nathaniel
Tum 0627
5. CS.
Fisher
10.Catherine
CS. William
Goko Gatehi 0174 0666
6. CS.
O. Oduor
OsiaWarui
0181 0668
11.Jeckonia
CS. Raphael
Edmund
7. CS.
Sau Mutemi
12.Patrick
CS. Joshua
Willy Wambua0406 1069
8. CS.
13.Peter
CS. Kamande
BernadetteMacharia
N. Njoroge 0508 1082
9. CS.
Kipkoriri
Tum 0627 1088
14.Dr.
CS.Nathaniel
Evans Thiga
Gaturu
10. CS.
GokoWangui
Gatehi Kingori
0666 1203
15.William
CS. Miriam
11. CS.
Edmund
16.Raphael
CS. Dennis
PeterWarui
Kihara 0668 1359
12. CS.
Willy Wambua
1069 1481
17.Joshua
CS. Nkirote
Kananu Mworia
13. CS.
N. Kamau
Njoroge
1082 1506
18.Bernadette
CS. Francis
14. CS.
Thiga
GaturuAndrew Mweseli1640
1088
19.Evans
CS. Tim
Okonda
15. CS.
WanguiAdhiambo
Kingori Ouma
1203 1643
20.Miriam
CS. Mildred
16. CS.
Peter Kihara
1359 1644
21.Dennis
CS. Wester
Wambunya Egessa
17. CS.
Nkirote
Kananu
Mworia
22. CS. Pius Mungai Nduatih 1481 1754
18. CS.
Kamau
23.Francis
CS. Esther
Wairimu Keige 1506 1837
19. CS.
Andrew Mweseli16401864
24.Tim
CS.Okonda
Lipio Mugambi
20. CS. Mildred Adhiambo Ouma 1643
21. CS. Wester Wambunya Egessa 1644
APOLOGIES
22. CS. Pius Mungai Nduatih
1754
23. CS. Esther Wairimu Keige
1837
24. CS. Lipio Mugambi
1864
APOLOGIES
Hon. Secretary
NAME
REG.NO.
Senior Manager, RSM Ashvir
Taking25.
Minutes
CS. Betty Atieno Okoth Asunah 1897
26. CS. Hesbon Owuor Hongo
1903
27. CS. Dr. Nicholas Kibiwot Letting1909
28. CS. George Opiyo Athiambo
1953
NAME
REG.NO.
29. CS. Stanley Kariru Kibanya
1981
25. CS.
Okoth Asunah
1897 2014
30.Betty
CS. Atieno
Mary Wambui
Ndirangu
26. CS.
Owuor
HongoGitahi 1903 2194
31.Hesbon
CS. Jesse
Elikanah
27. CS.
Kibiwot
Letting1909
32.Dr.
CS.Nicholas
Jeremiah
Ndungu
Karanja 2205
28. CS.
Opiyo
Athiambo
1953 2240
33.George
CS. Ruth
Njeri
Thandi
29. CS.
Kariru
KibanyaMogere
1981 2275
34.Stanley
CS. Enock
Onsongo
30. CS.
Mary
Wambui
Ndirangu
35. CS. Hesbon Ayoo Were 2014 2354
31. CS.
Gitahi Gikonyo
2194 2395
36.Jesse
CS. Elikanah
Charles Njuguna
32. CS.
Ndungu
Karanja
37.Jeremiah
CS. Peter
Mwangi
Kamau 2205 2407
33. CS.
ThandiNyaga
2240 2417
38.Ruth
CS. Njeri
Jane Njoki
34. CS.
OnsongoKananu
MogereGituma
2275 2474
39.Enock
CS. Caroline
35. CS.
Ayoo
WereNjoka 2354 2516
40.Hesbon
CS. John
Githinji
36. CS.
Njuguna
41.Charles
CS. Clara
AnneGikonyo
Nandwa 2395 2533
37. CS.
Kamau
42.Peter
CS. Mwangi
Gabriel Gitau
Kimani 2407 2562
38. CS.
43.Jane
CS. Njoki
Tom Nyaga
Mungai Ouma 2417 2618
39. CS.
Kananu
Gituma
44.Caroline
CS. Pritesh
Hasmukh
Shah2474 2768
40. CS.
Njoka Makokha
2516 2779
45.John
CS. Githinji
Paul Musungu
41. CS.
Clara
Anne
Nandwa
46. CS. Felix Kikuyu Kimoli 2533 2832
42. CS.
GitauOuma
Kimani
47.Gabriel
CS. Denis
Ambira 2562 2833
43. CS.
Ouma Mwangi
2618 2847
48.Tom
CS. Mungai
Peter Gathathai
44. CS.
Hasmukh
Shah
2768 2944
49.Pritesh
CS. Joachim
Njagi
Wandaka
2779
45. CS. Paul Musungu Makokha
46. CS.
Felix Kikuyu Kimoli
2832
3
47. CS. Denis Ouma Ambira
2833
48. CS. Peter Gathathai Mwangi
2847
49. CS. Joachim Njagi Wandaka
2944
3
NAME
REG.NO.
1. CS. Joseph Mwangi Njoya
APS019
2. CS. Raphael Githiga Mwai
0048
3. NAME
CS. Charles K. Wachira
0110
REG.NO.
4. CS. Eustace Kamuyu Minju
0222
Joseph
Njoya 0386
APS019
5. 1.
CS.CS.
Orlando
daMwangi
Costa-Luis
2.
CS.
Raphael
Githiga
Mwai
0048
6. CS. Abdulwahid M. H. Aboo
0387
Charles
K. Wachira
0110
7. 3.
CS.CS.
Peterson
Mwangi
0502
4.
CS.
Eustace
Kamuyu
Minju
0222
8. CS. Dorcas Kombo
0583
Orlando
da Costa-Luis 0605
0386
9. 5.
CS.CS.
John
Njeru Nyaga
Abdulwahid
M. H. Aboo 08610387
10. 6.
CS.CS.
Rosemary
W. Njogu
7.
CS.
Peterson
Mwangi
0502
11. CS. Paresh Bhimsi Bhatia
0896
DorcasMusakali
Kombo
0583
12. 8.
CS.CS.
Catherine
1033
9.
CS.
John
Njeru
Nyaga
0605
13. CS. Bernadette Barasa-Masinde 1039
Rosemary
W.Oluoch
Njogu
0861
14. 10.
CS.CS.
Beatrice
Amolo
1120
11.
CS.
Paresh
Bhimsi
Bhatia
0896
15. CS. Jane Florence Otieno
1184
Catherine
1033
16. 12.
CS.CS.
Silas
K. KobiaMusakali
1511
13.
CS.
Bernadette
Barasa-Masinde
1039
17. CS. Moses Buyuka Obonyo
1825
Beatrice
Amolo
Oluoch 1941
1120
18. 14.
CS.CS.
James
Muruthi
Kihara
15.
CS.
Jane
Florence
Otieno
1184
19. CS. Anthony Kisia
2101
Silas
K. Kobia
1511
20. 16.
CS.CS.
Julius
Mungai
Gichamba
2180
MosesAwuor
Buyuka Obonyo 2551
1825
21. 17.
CS.CS.
Everlyne
18.
CS.
James
Muruthi
Kihara
1941
22. CS. Kennedy Auka
2839
19. CS. Anthony Kisia
2101
20. CS. Julius Mungai Gichamba
2180
21. CS. Everlyne Awuor
2551
22. CS. Kennedy Auka
2839
4
4
The meeting was called to order by the Ag. Chairman, CS. Florence Mungai at 10.18 a.m who
welcomed the members to the 13th Annual General Meeting of the Benevolent Fund. This was
followed by a word of prayer from CS. Jane Muthaura.
The meeting observed a minute of silence in honour of the late CS. Agnes O. Makdwallo, a member of
the Fund, who passed away on January 18, 2015.
The meeting was called
to order CONVENING
by the Ag. Chairman,
CS. Florence Mungai at 10.18 a.m who
MIN.1/AGM/2015:
NOTICE
THE MEETING
th
welcomed the members to the 13 Annual General Meeting of the Benevolent Fund. This was
followed
by a word
of prayer
from
CS. Jane
Muthaura.
The
Honorary
Secretary
read the
Notice
convening
the meeting.
TH Agnes O. Makdwallo, a member of
The meeting observedADOPTION
a minute of silence
in honourOF
of the
late
MIN.2/AGM/2015:
OF MINUTES
THE
12CS.
ANNUAL GENERAL
the Fund, who passed away on January 18, 2015.
MEETING
MIN.1/AGM/2015:
NOTICE
CONVENING
THE
General
Meeting held
onMEETING
May 27 2014, having been earlier circulated,
Minutes of the 12th Annual
were taken as read and adopted on a proposal by CS. Peter K. Macharia, seconded by CS. Mary
The Honorary
Secretary signed
read thebyNotice
convening the meeting.
Ndirangu
and thereafter
the Chairperson.
MIN.2/AGM/2015: ADOPTION OF THE
MINUTES
OF THE
12TH ANNUAL GENERAL
MIN.3/AGM/2015:
TRUSTEES
REPORT
MEETING
The Chairperson read the Trustees’ Report on the performance of the Fund for the year ended
Minutes
the2014
12th which
Annual
General
Meeting
held on May 27 2014, having been earlier circulated,
Decemberof31,
had
the following
highlights:were taken as read and adopted on a proposal by CS. Peter K. Macharia, seconded by CS. Mary
Ndirangu
signed
by the marginally
Chairperson.
The Fund and
life thereafter
membership
increased
from 449 members in 2013 to 458 members in year
2014. However, the Annual Membership decreased from 929 members in 2013 to 724 in 2014, a
MIN.3/AGM/2015:
ADOPTION
OF fund
THEbalance
TRUSTEES
REPORT
significant decrease of
22.70 %. The
grew from
Shs. 25,500,615/= in the year 2013 to
Shs. 30,390,243/= in the year 2014, representing a growth of 19.20%.
The Chairperson read the Trustees’ Report on the performance of the Fund for the year ended
December
31, 2014 which
the following highlights:Financial Assistance
yearhad
2014
The following
Fund life membership
increased
from 449 members in 2013 to 458 members in year
members were
assisted marginally
during the year:
2014. However,Name
the Annual Membership Reg
decreased
929 members
in 2013 to Amount
724 in 2014,
No. from Nature
of Assistance
(Shs)a
significant
decrease
of 22.70
%. The fund balance
from Shs. 25,500,615/= in the year
2013 to
CS. Mercy
Mwendwa
Muthuuri
1272 grewMedical
20,000.00
Shs. 30,390,243/= in the year 2014, representing a growth of 19.20%.
CS. Gad Zadock Owiti (Deceased)
1390
School fees for his Children
10,000.00
CS. Grace
Njeri Gichuhi
1995
Medical
30,000.00
Financial
Assistance
year 2014
Total
60,000.00
The following members were assisted during the year:
Name
Reg No.
of Assistance
(Shs)
In response to the
Trustees’ Report members
sought to Nature
know the
reasons behind Amount
the significant
CS. Mercy
Mwendwa
Muthuuri
1272membersMedical
decrease
in the
membership
of the Fund. The
were informed that this was as a20,000.00
result of
inconsistencies
by
members
in
paying
their
annual
contributions
to
the
Fund.
However,
the
Council
CS. Gad Zadock Owiti (Deceased)
1390
School fees for his Children
10,000.00of
the Institute had addressed this challenge by making it mandatory for all members to contribute to the
CS. Grace Njeri Gichuhi
1995
Medical
30,000.00
fund as part of their annual subscription to the Institute.
Total
60,000.00
In response to the Trustees’ Report members sought to know the reasons behind the significant
decrease in the membership of the Fund. The members were informed that this was as a result of
inconsistencies by members in paying their annual contributions to the Fund. However, the Council of
the Institute had addressed this challenge by making
5 it mandatory for all members to contribute to the
fund as part of their annual subscription to the Institute.
5
On proposal by CS. Joe M. Mbuthia and seconded by CS. Patrick S. Mutemi, the Report of Trustees
was adopted.
On proposal by CS. Joe M. Mbuthia and seconded by CS. Patrick S. Mutemi, the Report of Trustees
MIN.4/AGM/2015:
ADOPTION OF AUDITED FINANCIAL STATEMENTS OF THE FUND
was adopted.
FOR THE YEAR ENDED DECEMBER 31, 2014
The
Accounts were presented
by Mr.
OgetoFINANCIAL
from RSM Ashvir
alongside the
MIN.4/AGM/2015:
ADOPTION
OF Elvis
AUDITED
STATEMENTS
OF Independent
THE FUND
Auditor’
Report
to
the
members
of
ICPSK
Benevolent
Fund,
which
indicated
that
proper
books of
FOR THE YEAR ENDED DECEMBER 31, 2014
account had been kept by the Fund.
The Accounts were presented by Mr. Elvis Ogeto from RSM Ashvir alongside the Independent
InAuditor’
responseReport
to the to
presented
Audited
members Fund,
noted that
theindicated
operatingthat
expenditure
of theof
the members
of Accounts,
ICPSK Benevolent
which
proper books
Fund
was had
Ksh.been
164,391/=
account
kept byand
the wanted
Fund. to confirm that there were no other expenses which had not been
captured or omitted in the disclosures. The Trustees confirmed that there were no other related costs
incurred
by the
In response
toFund.
the presented Audited Accounts, members noted that the operating expenditure of the
Fund was Ksh. 164,391/= and wanted to confirm that there were no other expenses which had not been
Consequently,
the Audited
Financial Statements
wereconfirmed
adopted that
as proposed
Gabriel
captured or omitted
in the disclosures.
The Trustees
there werebynoCS.
other
relatedGitau
costs
Kimani,
and
seconded
by
CS.
Zachary
K.
Ndung’u.
incurred by the Fund.
Consequently, the Audited Financial Statements were adopted as proposed by CS. Gabriel Gitau
MIN.5/AGM/2015:
PAYMENT
OF FUEL
ALLOWANCE FOR THE BENEVOLENT FUND
Kimani, and seconded
by CS. Zachary
K. Ndung’u.
TRUSTEES FOR THE FINANCIAL YEAR 2015
The
Trustees presentedPAYMENT
to the Annual
meeting a proposal
thatTHE
the Trustees
be paid aFUND
fuel
MIN.5/AGM/2015:
OFGeneral
FUEL ALLOWANCE
FOR
BENEVOLENT
allowance
to
cushion
them
on
the
high
transport
costs
of
attending
Fund’s
meetings.
Notably
since
the
TRUSTEES FOR THE FINANCIAL YEAR 2015
inception of the Fund, the officials of the Fund served on pro bono basis. Hence, a request was put to
the
members
pass a resolution
that a payment
of Ksh. 5,000
be made
a
The
Trusteestopresented
to the Annual
General meeting
a proposal
thatper
themember
Trusteesper
besitting
paid aasfuel
fuel
allowance
to the Benevolent
Fund
effect
from theFund’s
date ofmeetings.
AGM, May
15, 2015.
allowance
to cushion
them on the
highTrustees
transportwith
costs
of attending
Notably
since the
inception of the Fund, the officials of the Fund served on pro bono basis. Hence, a request was put to
After
due consideration,
and resolved
that
a fuel
Ksh.5,000/=
be paid
the members
to pass a members
resolutionapproved
that a payment
of Ksh.
5,000
beallowance
made per of
member
per sitting
as a
per
per to
sitting
in 2015, on
a proposal
CS.effect
Joshua
W.the
Wambua
seconded
by15,
CS.
Joe M.
fuelmember
allowance
the Benevolent
Fund
Trusteesby
with
from
date of AGM,
May
2015.
Mbuthia.
After due consideration, members approved and resolved that a fuel allowance of Ksh.5,000/= be paid
MIN.6/AGM/2015:
RESIGNATION
CS. PAUL
A.Joshua
SPENCE
per member per sitting
in 2015, on aOF
proposal
by CS.
W. Wambua seconded by CS. Joe M.
Mbuthia.
The Chairman reported that CS. Paul A. Spence had voluntarily resigned as a Benevolent Fund
Trustee.
It was also noted
that in accordance
Clause
10 (b) (i) a of the Benevolent Fund Trust
MIN.6/AGM/2015:
RESIGNATION
OF CS.with
PAUL
A. SPENCE
Deed, it was upon the Institute, as the Founder, to appoint a replacement.
The Chairman reported that CS. Paul A. Spence had voluntarily resigned as a Benevolent Fund
MIN.7/AGM/2015:
APPOINTMENT
OF AUDITORS
FOR
2015 Fund Trust
Trustee. It was also
noted that in accordance
with Clause
10FINANCIAL
(b) (i) a of theYEAR
Benevolent
Deed, it was upon the Institute, as the Founder, to appoint a replacement.
On proposal by CS. Dr. Nathaniel Kipkorir Tum and seconded by CS. Lipio Mugambi it was resolved
that
the Auditors appointed
by the Institute
be theFOR
sameFINANCIAL
ones to auditYEAR
the Benevolent
Fund.
MIN.7/AGM/2015:
APPOINTMENT
OFCouncil
AUDITORS
2015
On proposal by CS. Dr. Nathaniel Kipkorir Tum and seconded by CS. Lipio Mugambi it was resolved
that the Auditors appointed by the Institute Council be the same ones to audit the Benevolent Fund.
6
6
MIN.8/AGM/2015: SPECIAL RESOLUTION
It was agreed that the special resolution to consider and pass the resolution that the Benevolent Fund
and the ICPSK Sacco jointly buys 1000sq ft office space in the CPS Governance Centre be discussed
MIN.8/AGM/2015: SPECIAL RESOLUTION
in a Special Annual General meeting after a write-up has been done on the same and circulated to all
the members of the Institute.
It was agreed that the special resolution to consider and pass the resolution that the Benevolent Fund
and the ICPSK Sacco jointly buys 1000sq ft office space in the CPS Governance Centre be discussed
in a Special Annual General meeting after a write-up has been done on the same and circulated to all
MIN.9/AGM/2015: ANY OTHER BUSINESS
the members of the Institute.
There being no other business for which due notice was received by the Secretary the Chairperson
thanked the members for attending the meeting and for their worthwhile contributions.
MIN.9/AGM/2015: ANY OTHER BUSINESS
The meeting ended at 10.48 a.m. with a word of prayer from CS. Gilbert O. Otieno
There being no other business for which due notice was received by the Secretary the Chairperson
thanked the members for attending the meeting and for their worthwhile contributions.
The meeting ended at 10.48 a.m. with a word of prayer from CS. Gilbert O. Otieno
CONFIRMED…………………………………………… DATE…………………………………
(CHAIRPERSON)
CONFIRMED…………………………………………… DATE…………………………………
(CHAIRPERSON)
7
7
ICPSK BENEVOLENT FUND TRUSTEES REPORT
14TH ANNUAL GENERAL MEETING, MAY 31, 2016
I am pleased to welcome all of you to the Fund’s Fourteenth Annual General Meeting. Your
attendance shows your commitment to the objectives of the Benevolent Fund. The 2015 financial
results as outlined in the audited accounts earlier circulated clearly indicate good performance which is
a result of good
membership
and management
support.
ICPSK
BENEVOLENT
FUND TRUSTEES
REPORT
The Fund has
continuously
its core
objectiveMAY
which31,is2016
to help distressed persons, who are
ANNUAL observed
GENERAL
MEETING,
14TH
members of the fund, their spouses, children and dependants of deceased members and, in special
circumstances,
persons
who all
for any
reason
haveFund’s
ceased Fourteenth
to be members
of the
fund, asMeeting.
set out inYour
the
I am pleased to
welcome
of you
to the
Annual
General
Rules and Regulations
stipulated in to
thethe
Trust
Deed. of the Benevolent Fund. The 2015 financial
attendance
shows yourascommitment
objectives
results as outlined in the audited accounts earlier circulated clearly indicate good performance which is
Financials
a1.result
of good membership and management support.
The following
are some of the
highlights
of the
Fund for
the year
December
31, 2015:
The
Fund has continuously
observed
its core
objective
which
is to ended
help distressed
persons,
who are
members of the fund, their spouses, children and dependants of deceased members and, in special
The
Fund Life persons
Membership
continued
grow
and for
themembers
year 2015,
membership
circumstances,
who has
for any
reason to
have
ceased
to be
of the
the Fund
fund, life
as set
out in the
increased
from
458
members
in
the
year
2014
to
468
members
in
year
2015.
The
Annual
Membership
Rules and Regulations as stipulated in the Trust Deed.
increased from 1,182 members in the year 2014 to 1,448 in the year 2015, a significant increase of 23
%.
fund balance grew from Shs 30,390,243 in the year 2014 to Shs. 32,686,055 in the year 2015,
1. The
Financials
representing a growth of 8%.
The following are some of the highlights of the Fund for the year ended December 31, 2015:
Financial Assistance year 2015
The Fund Life Membership has continued to grow and for the year 2015, the Fund life membership
The
following
were in
assisted
during
increased
frommembers
458 members
the year
2014the
to year;
468 members in year 2015. The Annual Membership
increased from 1,182 members in the year 2014 to 1,448 in the year 2015, a significant increase of 23
%. The fund Name
balance grew from Shs
in the Nature
year 2014
to Shs. 32,686,055 in the
year 2015,
Reg30,390,243
No.
of Assistance
Amount
(Shs)
representing a growth of 8%.
Peter Arisi M. Okiambe
50,000
0586
Deceased Husband (CS. Peter A. Okaimbe)
Agnes Atieno
Okungu
50,000
Financial
Assistance
year 2015 0766
Deceased Wife (CS. Agnes Makdwallo)
Nicholas Valentine Anduuru
50,000
2411
Deceased Wife
The following members were assisted during the year;
Sammy Marasi Mwencha
50,000
2125
Deceased Wife
Joseph Mwangi Njoya
40,000
APS 019 Medical bill for Wife
Name
Reg No.
Nature of Assistance
Amount (Shs)
Charles Kiano Wachira
30,000
0110
Medical bill for CS. Charles Wachira
Peter Arisi M. Okiambe
50,000
0586
Deceased Husband (CS. Peter A. Okaimbe)
Total
270,000
Agnes Atieno Okungu
50,000
0766
Deceased Wife (CS. Agnes Makdwallo)
Nicholas
Valentine Anduuru
50,000
2411
Deceased
Wife
The
Fund commends
members who
have provided
their
personal data to the Institute and urges those
members
have
not yet submitted
personal Wife
particulars to the Secretariat are encouraged
to
Sammy who
Marasi
Mwencha
50,000
2125theirDeceased
ensure
that
their
next
of
kin
are
informed
of
the
existence
of
the
Benevolent
Fund.
This
information
Joseph Mwangi Njoya
40,000
APS 019 Medical bill for Wife
will help the Fund in reaching the family of members in case of any eventuality and further, the family
Charles
Wachira
30,000
0110
Medical
bill for ICS.
Charles
could
alsoKiano
on their
own motion reach
the Fund.
In addition,
would
like Wachira
to encourage all the members
to Total
keep their accounts up to date to enable the Fund render its services effectively.
270,000
Thebehalf
Fund commends
members
whoonce
haveagain
provided
personal
to the
Institute
and this
urgesAnnual
those
On
of the Trustees,
let me
thanktheir
all of
you fordata
finding
time
to attend
membersMeeting.
who have not yet submitted their personal
particulars to the Secretariat are encouraged to
General
8
ensure that their next of kin are informed of the existence of the Benevolent Fund. This information
will help the Fund in reaching the family of members in case of any eventuality and further, the family
could also on their own motion reach the Fund. In addition, I would like to encourage all the members
to keep
their accounts
up toMUNGAI
date to enable the Fund render its services effectively.
CS.
FLORENCE
NJERI
CHAIRMAN BOARD OF TRUSTEES,
ICPSK BENEVOLENT FUND
8
THE INSTITUTE OF CERTIFIED PUBLIC SECRETARIES
OF KENYA BENEVOLENT FUND
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2015
The Institute of Certified Public Secretaries of Kenya Benevolent Fund
Annual report and financial statements
For the year ended 31st December 2015
PAGE
Fund information
1
Report of the Trustees
2
Statement of Trustees' responsibilities
3
Report of the independent auditor
4
Financial statements
Statement of income and expenditure
5
Statement of financial position
6
Statement of changes in fund balance
7
Statement of cash flows
8
Notes
9 - 15
Supplementary information:
Schedule of operating expenditure
Appendix I
The Institute of Certified Public Secretaries of Kenya Benevolent Fund
Fund information
For the year ended 31st December 2015
Trustees
CS. Florence Mungai
CS. Jane W. Muthaura
CS. Symon Mugo Mbanya
CS. John B. Nthuku
CS. Bernadette N. Masinde
CS. Jane F. Otieno
Honorary secretary
CS. John K. Mburugu
Registered office
The Institute of Certified Public Secretaries of Kenya
CPS Governance Centre
Upper Hill
Kilimanjaro Road
P.O. Box 46935 - 00100
Nairobi,
Kenya.
Honorary independent auditor
RSM Eastern Africa
Certified Public Accountants
1st Floor, Pacis Centre
Slip Road, off Waiyaki Way, Westlands
P.O. Box 349 - 00606
Nairobi,
Kenya.
Principal banker
Standard Chartered Bank of Kenya Limited
Harambee Avenue
P.O. Box 3001 - 00100
Nairobi,
Kenya.
1
- Chairperson
- Trustee
- Trustee
- Trustee
- Trustee
- Trustee
The Institute of Certified Public Secretaries of Kenya Benevolent Fund
Report of the trustees
For the year ended 31st December 2015
The Board of Trustees submit their report and the audited financial statements for the year ended 31st December 2015
which disclose the state of affairs of the Fund.
Incorporation
The Institute of Certified Public Secretaries of Kenya Benevolent Fund (the ''Fund'') was founded in 1990 and its trust
deed registered on 1st February 2004. The address of the registered office is set out on page 1.
Objective of the Fund
The Fund's objective is to help distressed persons, who are members of the Fund, their spouses, children and dependents of
deceased members and, in special circumstances, persons who for any reason have ceased to be members of the Fund, as set
out in the rules and regulations that are currently in force.
Results
The net surplus for the year of Shs 2,295,812 (2014: Shs 4,912,618) has been transferred to fund balance.
Membership
The membership in the fund as at 31st December was as follows:
2015
Members
2014
Members
Life
468
458
Annual
980
724
1,448
1,182
Totals
Trustees
The trustees and management committee members who held office during the year and to the date of this report are set out
on page 1.
Honorary auditors
The Fund's auditor, RSM Eastern Africa, has expressed its willingness to continue in office.
By order of the trustees
………………………………….
Honorary secretary
Nairobi ………………….....………... 2016
2
The Institute of Certified Public Secretaries of Kenya Benevolent Fund
Statement of trustees' responsibilities
For the year ended 31st December 2015
The Trust Deed requires the Trustees to prepare financial statements for each financial year that give a true and fair view of
the state of affairs of the Fund as at the end of the financial year and of its operating results for that year. It also requires the
Trustees to ensure that the Fund maintains proper accounting records that disclose, with reasonable accuracy, the financial
position of the Fund. They are also responsible for safeguarding the assets of the fund.
The trustees accept responsibility for the preparation and fair presentation of financial statements that are free from material
misstatement whether due to fraud or error. They also accept responsibility for:
i)
designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the
financial statements;
ii) selecting and applying appropriate accounting policies; and
iii) making accounting estimates and judgments that are reasonable in the circumstances.
The Trustees are of the opinion that the financial statements give a true and fair view of the state of the financial affairs of
the Fund as at 31st December 2015 and of its financial performance and cash flows for the year then ended in accordance
with International Financial Reporting Standards and the requirementsof the Trust Deed.
Nothing has come to the attention of the Trustees to indicate that the Fund will not be able to fulfill its obligation for at least
the next twelve months from the date of this statement.
Approved by the Trustees on ………………………………….. 2016 and signed on its behalf by:
……………………………………
Honorary secretary
……………………………………
Trustee
3
REPORT OF THE INDEPENDENT AUDITOR
TO THE MEMBERS OF THE INSTITUTE OF CERTIFIED PUBLIC SECRETARIES OF KENYA BENEVOLENT FUND
Report on the financial statements
We have audited the accompanying financial statements of the Institute of Certified Public Secretaries of Kenya Benevolent Fund, set out on
pages 5 to 15, which comprise the statement of financial position as at 31st December 2015, statement of income and expenditure, statement
of changes in fund balance and statement of cash flows for the year then ended, and a summary of significant accounting policies and other
explanatory information.
Trustees' responsibility for the financial statements
The Trustees are responsible for the preparation of financial statements that give a true and fair view in accordance with International
Financial Reporting Standards and the requirements of the Trust Deed, and for such internal control as the trustees determine is necessary to
enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's 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 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 controls relevant to the Fund'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 Funds internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates made by the trustees, 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 accompanying financial statements give a true and fair view of the state of financial affairs of the Fund as at 31st
December 2015 and of its financial performance and cash flows for the year then ended in accordance with International Financial Reporting
Standards.
The engagement partner responsible for the audit resulting in this independent auditor's report was FCPA Ashif Kassam, Practicing
Certificate No. 1126.
Certified Public Accountants
Nairobi
………………………………….. 2016
/2016
4
The Institute of Certified Public Secretaries of Kenya Benevolent Fund
Financial statements
For the year ended 31st December 2015
STATEMENT OF INCOME AND EXPENDITURE FOR THE YEAR ENDED 31ST DECEMBER 2015
Note
Subscription income
Net investment (deficit)/income
4
Operating expenditure
2015
Shs
2014
Shs
2,749,000
2,080,000
(134,623)
(318,565)
Surplus for the year
2,295,812
5
2,997,009
(164,391)
4,912,618
The Institute of Certified Public Secretaries of Kenya Benevolent Fund
Financial statements
For the year ended 31st December 2015
STATEMENT OF FINANCIAL POSITION AT 31ST DECEMBER 2015
Note
FUND BALANCE
Fund balance
2015
Shs
2014
Shs
32,686,055
30,390,243
3,018,000
2,800,000
2,741,166
4,050,000
2,800,000
3,621,842
8,559,166
10,471,842
18,867,499
1,016,206
58,546
4,187,638
4,800,000
14,107,431
307,829
706,141
24,129,889
19,921,401
3,000
3,000
24,126,889
19,918,401
32,686,055
30,390,243
REPRESENTED BY
Non-current assets
Held-to-maturity investments
Available-for-sale investments
Financial assets at fair value - equity investments
5
6
7(a)
Current assets
Held-to-maturity investments
Financial assets at fair value - unit trusts
Other receivables
Withholding tax receivable
Cash at bank and in hand
5
7(b)
8
9
Current liabilities
Other payables
10
Net current assets
The financial statements on pages 5 to 15 were approved by the Trustees for issue on …………………..2016 and were
signed on its behalf by:
………….………….
Honorary secretary
….………………….
Trustee
6
The Institute of Certified Public Secretaries of Kenya Benevolent Fund
Financial statements
For the year ended 31st December 2015
STATEMENT OF CHANGES IN FUND BALANCE FOR THE YEAR ENDED 31ST DECEMBER 2015
Fund
Balance
Shs
At 1st January 2014
Total
Shs
25,477,625
25,477,625
4,912,618
4,912,618
At 31st December 2014
30,390,243
30,390,243
At 1st January 2015
30,390,243
30,390,243
2,295,812
2,295,812
32,686,055
32,686,055
Surplus for the year
Surplus for the year
At 31st December 2015
7
The Institute of Certified Public Secretaries of Kenya Benevolent Fund
Financial statements
For the year ended 31st December 2015
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31ST DECEMBER 2015
Cash flows from operating activities
Surplus for the year
Adjustments for:
Interest from treasury bonds
Loss/(gain) on market value of unit trust
Loss/(gain) on market value of quoted shares
Loss on sale of shares
Dividends received
Operating profit before working capital changes
Increase in:
Other receivables
Decrease in:
Trade
Other and
payables
other payables
2015
Shs
2014
Shs
2,295,812
4,912,618
(867,167)
181,386
880,676
(57,478)
2,433,229
(498,000)
(1,060,266)
(970,232)
20,650
(72,716)
2,332,054
(708,377)
(140,581)
-
Net cash generated from operating activities
(19,990)
1,724,852
2,171,483
867,167
57,478
1,032,000
4,800,000
(5,000,000)
-
498,000
72,716
(7,600,000)
4,900,000
338,144
(40,168)
Net cash generated from/(used in) investing activities
1,756,645
(1,831,308)
Net increase in cash and cash equivalents
3,481,497
340,175
Cash and cash equivalents at 1st January
706,141
365,966
4,187,638
706,141
Cash flows from investing activities
Interest from treasury bonds
Dividend received
Purchase of government securities
Matured treasury bond
Matured treasury bills
Proceed from sale of equity investments
Purchase of unit trust
Purchase of equity investments
Cash and cash equivalents at 31st December
9
8
The Institute of Certified Public Secretaries of Kenya Benevolent Fund
Financial statements
For the year ended 31st December 2015
NOTES
1. Summary of significant accounting policies
The significant accounting policies adopted in the preparation of these general purpose financial statements are set out
a) Basis of preparation
The financial statements are prepared on a going concern basis in compliance with International Financial Reporting
Standards (IFRS). They are presented in Kenya Shillings (Shs), which is also the functional currency. The
measurement basis used is the historical cost basis except where otherwise stated in the accounting policies below.
The preparation of financial statements in conformity with International Financial Reporting Standards requires the
use of estimates and assumptions. It also requires management to exercise its judgment in the process of applying
the accounting policies adopted by the Fund. Although such estimates and assumptions are based on the
management committee members best knowledge of the information available, actual results may differ from those
estimates. The judgments and estimates are reviewed at the end of each reporting period, and any revisions to such
estimates are recognised in the year in which the revision is made. The areas involving the judgments of most
significance to the financial statements, and the sources of estimation uncertainty that have a significant risk of
resulting in a material adjustment within the next financial year, are disclosed in Note 3.
Measurement basis
The measurement basis used is the historical cost basis except where otherwise stated in the accounting policies
For those assets and liabilities measured at fair value, fair value is the price that would be received to sell an asset or
paid to transfer a liability in an orderly transaction between market participants at the measurement date. When
measuring the fair value of an asset or a liability, the Fund uses market observable data as far as possible. If the fair
value of an asset or a liability is not directly observable, it is estimated by the Fund using valuation techniques that
maximise the use of relevant observable inputs and minimise the use of unobservable inputs (e.g. by use of the
market comparable approach that reflects recent transaction prices for similar items or discounted cash flow
analysis). Inputs used are consistent with the characteristics of the asset / liability that market participants would
take into account.
Fair values are categorised into three levels in a fair value hierarchy based on the degree to which the inputs to the
measurement are observable and the significance of the inputs to the fair value measurement in its entirety:
• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical
assets or liabilities.
• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1
that are observable for the asset or liability, either directly (ie as prices) or indirectly (ie derived from prices).
• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or
liability that are not based on observable market data (unobservable inputs).
Transfers between levels of the fair value hierarchy are recognised by the Fund at the end of the reporting period
during which the change occurred.
b) New and revised standards
i) Adoption of new and revised standards
All new and revised standards and interpretations that have become effective for the first time in the financial
year beginning 1st January 2015 have been adopted by the Fund. Of those, the following have had an effect on
the Fund's financial statements:
IFRS 9 - Financial Instruments will eventually replace IAS 39 - Financial Instruments: Recognition and
Measurement. The effective date is 1st January 2018. The chapters of IFRS 9 dealing with recognition,
classification, and measurement were published in November 2009, for financial assets, and in October 2010,
for financial liabilities, and have been adopted by the fund with effect from 1st January 2010. The remaining
chapters have been issued subsequently, and have not been adopted. For the impairment of financial assets,
IFRS 9 introduces an “expected credit loss” model based on the concept of providing for expected losses at
inception of a contract; it will no longer be necessary for there to be objective evidence of impairment before a
credit loss is recognised. The impact on the fund's financial statements once adopted cannot yet be assessed.
9
The Institute of Certified Public Secretaries of Kenya Benevolent Fund
Financial statements
For the year ended 31st December 2015
NOTES (CONTINUED)
1. Summary of significant accounting policies (continued)
b) New and revised standards (continued)
ii) New and revised standards and interpretations which have been issued but are not effective
The Fund has not applied the following revised standards and interpretations that have been published but are not yet
effective for the year beginning 1st January 2015.
• IFRS 15 Revenue from Contracts with Customers (issued in May 2014) - The new standard, effective for annual
periods beginning on or after 1 January 2017, replaces IAS 11, IAS 18 and their interpretations (SIC-31 and IFRIC 13,
15 and 18). It establishes a single and comprehensive framework for revenue recognition to apply consistently across
transactions, industries and capital markets, with a core principle (based on a five-step model to be applied to all
contracts with customers), enhanced disclosures, and new or improved guidance.
• Amendments to IAS 1 titled Disclosure Initiative (issued in December 2014) – The amendments, applicable to
annual periods beginning on or after 1 January 2016, clarify guidance on materiality and aggregation, the presentation
of subtotals, the structure of financial statements and the disclosure of accounting policies.
• Amendments to IAS 16 and IAS 38 titled Clarification of Acceptable Methods of Depreciation and Amortisation
(issued in May 2014) – The amendments add guidance and clarify that (i) the use of revenue-based methods to
calculate the depreciation of an asset is not appropriate because revenue generated by an activity that includes the use
of an asset generally reflects factors other than the consumption of the economic benefits embodied in the asset, and
(ii) revenue is generally presumed to be an inappropriate basis for measuring the consumption of the economic
benefits embodied in an intangible asset; however, this presumption can be rebutted in certain limited circumstances.
They are prospectively effective for annual periods beginning on or after 1 January 2016.
• Amendments to IAS 12 titled Recognition of Deferred Tax Assets (issued in January 2016) – The amendments,
applicable to annual periods beginning on or after 1 January 2017, provide additional guidance on the estimation of
future taxable profits when considering the recoverability of deferred tax assets.
• Amendments to IAS 7 titled Disclosure Initiative (issued in January 2016) – The amendments, applicable to annual
periods beginning on or after 1 January 2017, require enhanced disclosure concerning changes in liabilities arising
from financing activities.
• Amendment to IFRS 5 (Annual Improvements to IFRSs 2012–2014 Cycle, issued in September 2014) - The
amendment, applicable prospectively to annual periods beginning on or after 1 January 2016, adds specific guidance
when an entity reclassifies an asset (or a disposal group) from held for sale to held for distribution to owners, or vice
versa, and for cases where held-for-distribution accounting is discontinued.
• IFRS 16 Leases (issued in January 2016) - The new standard, effective for annual periods beginning on or after 1
January 2019, introduces a new lessee accounting model, and will require a lessee to recognise assets and liabilities
for all leases with a term of more than 12 months, unless the underlying asset is of low value. A lessee will be required
to recognise a right-of-use asset representing its right to use the underlying leased asset and a lease liability
representing its obligation to make lease payments.
The Trustees have assessed the potential impact of the above and expect that they will not have a significant impact on
the Fund's financial statements for 2015.
c) Revenue recognition
i) Subscription income is accounted for in the period in which it is received.
ii) Dividend income is recognised when the right to receive the payment is established.
iii) Interest income is recognised on a time proportion basis using the effective interest method.
d) Expenditure
Expenditure is accounted for on an accrual basis.
e) Financial instruments
The Fund classifies its financial instruments into the following categories:
Classification
i) Financial assets at fair value through profit or loss which comprise financial assets acquired or incurred principally for
the purpose of selling or repurchasing in the near term or to
10generate short-term profit-taking.
The Institute of Certified Public Secretaries of Kenya Benevolent Fund
Financial statements
For the year ended 31st December 2015
NOTES (CONTINUED)
1. Summary of significant accounting policies (continued)
e)
Financial instruments (continued)
Classification (continued)
ii) Available-for-sale financial assets, which comprise non-derivative financial assets that are designated as
available-for-sale financial assets, and not classified under any of the other categories of financial assets.
iii) Loans and receivables are recognised initially using the trade date accounting which is the date the Fund
commits itself to the purchase or sale. Subsequently, loans and receivables are carried at amortised cost using the
effective interest method; and
iv) Financial liabilities are measured at amortised cost which comprise all financial liabilities except those financial
liabilities at fair value through profit or loss.
Financial instruments held during the year were classified as follows:
- Demand and term deposits with banking institutions and other receivables were classified as 'loans and
receivables'.
- Government securities were classified as 'held-to-maturity investments'.
- Investments in corporate bond were classified as available-for-sale investments.
- Investments in unit trust are classified as financial assets through profit and loss.
- Investments in quoted shares were classified as financial assets through profit and loss.
- Other liabilities were classified as financial liabilities.
Recognition and measurement
i)
Financial assets
All financial assets are recognised initially using the trade date accounting which is the date the Fund commits itself
to the purchase or sale. Financial assets carried at fair value through profit or loss are initially recognised at fair
value and the transaction costs are expensed in the statement of comprehensive income. All other categories of
financial assets are recorded at the fair value of the consideration given plus the transaction cost.
Subsequently, loans and receivables are carried at amortised cost using the effective interest method, while all other
financial assets are carried at their fair values, without deduction for transaction costs that may be incurred on sale.
Amortised cost is the amount at which the financial asset or liability is measured on initial recognition minus
principal repayments, plus or minus the cumulative amortisation using the effective interest method of any
difference between the initial amount and the maturity amount, and minus any reduction for impairment or
uncollectibility.
The Fund assesses at each balance sheet whether there is objective evidence that a financial asset is impaired. If
any such evidence exists, an impairment loss is recognised. Impairment loss is the amount by which the carrying
amount of an asset exceeds its recoverable amount. The recoverable amount is the present value of the expected
future cash flows, discounted using the asset's effective interest rate.
Changes in the carrying values and impairment losses of loans and receivables are recognised in the statement of
comprehensive income. Trade and other receivables not collectible are written off against the related provision.
Subsequent recoveries of amounts previously written off are credited to the statement of income and expenditure in
the year of recovery.
ii)
Financial liabilities
All financial liabilities are recognised initially at fair value of the consideration given plus the transaction cost with
the exception of financial liabilities carried at fair value through profit or loss, which are initially recognised at fair
value and the transaction costs are expensed in the statement of comprehensive income.
11
The Institute of Certified Public Secretaries of Kenya Benevolent Fund
Financial statements
For the year ended 31st December 2015
NOTES (CONTINUED)
1. Summary of significant accounting policies (continued)
e) Financial instruments (continued)
Recognition and measurement (continued)
ii)
Financial liabilities (continued)
Subsequently, all financial liabilities are carried at amortised cost using the effective interest method except for
financial liabilities through profit or loss which are carried at fair value.
Trade and other liabilities are classified as financial liabilities by the trustees and are carried at amortised cost.
Presentation:
All financial assets are classified as non-current except financial assets at fair value through profit or loss
(statement of comprehensive income), those with maturities of less than 12 months from the statement of financial
position date, those which the trustees have the express intention of holding for less than 12 months from the
statement of financial position date or those that are required to be sold to raise operating capital, in which case
they are classified as current assets.
All financial liabilities are classified as non-current except financial liabilities at fair value through profit or loss
(statement of comprehensive income), those expected to be settled in the Fund's normal operating cycle, those
payable or expected to be paid within 12 months of the balance sheet date and those which the Institute does not
have an unconditional right to defer settlement for at least 12 months after the statement of financial position date.
Derecognition:
Financial assets are derecognised when the rights to receive cash flows from the investments have expired or the
Fund has transferred substantially all risks and rewards of ownership.
Financial liabilities are derecognised only when the obligation specified in the contract is discharged or cancelled
or expires.
Offsetting
Financial assets and liabilities are offset and the net amount reported in the balance sheet only when there is a
legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis, or
realise the asset and settle the liability simultaneously.
f)
Cash and cash equivalents
Cash and cash equivalents include cash in hand and demand and term deposits, with maturities of three months or
less from the date of acquisition, that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.
2. Risk management objectives and policies
a) Financial risk management
The Fund's activities expose it to a variety of financial risks including credit, liquidity and market risks. The Fund's
overall risk management policies are set out by the board and implemented by the management, and focus on the
unpredictability of changes in the business environment and seek to minimise the potential adverse effects of such
risks on the Fund's performance by setting acceptable levels of risk. The Fund does not hedge against any risks.
12
The Institute of Certified Public Secretaries of Kenya Benevolent Fund
Financial statements
For the year ended 31st December 2015
NOTES (CONTINUED)
2. Risk management objectives and policies (continued)
i) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing
to discharge an obligation. Credit risk mainly arises from financial assets, and is managed on a fund-wide basis. The
Fund does not grade the credit quality of financial assets that are neither past due nor impaired.
Credit risk on financial assets with banking institutions is managed by dealing with institutions with good credit
ratings and placing limits on deposits that can be held with each institution.
The credit risk of the Fund is minimal as the Fund does not trade.
The credit exposure of the Fund as at the balance sheet date is as follows:
Year ended 31st December 2015
Available-for-sale investment
Financial assets at fair value - equity investments
Held-to-maturity investment
Financial assets at fair value - unit trusts
Other receivables
Cash at bank
Year ended 31st December 2014
Available-for-sale investment
Financial assets at fair value - equity investments
Held-to-maturity investment
Financial assets at fair value - unit trusts
Other receivables
Cash at bank
Fully
performing
Shs
Past due but Past due and
not impaired
impaired
Shs
Shs
Total
Shs
2,800,000
2,741,166
3,018,000
18,867,499
1,016,206
4,187,638
-
-
2,800,000
2,741,166
3,018,000
18,867,499
1,016,206
4,187,638
32,630,509
-
-
32,630,509
Fully
performing
Shs
Past due but Past due and
not impaired
impaired
Shs
Shs
Total
Shs
2,800,000
3,621,842
8,850,000
14,107,431
307,829
706,141
-
-
2,800,000
3,621,842
8,850,000
14,107,431
307,829
706,141
30,393,243
-
-
30,393,243
ii) Liquidity risk
Liquidity risk is the risk that the Fund will encounter difficulty in meeting obligations associated with financial
liabilities. The Fund pays other payables as they are due. The Fund has not developed a formal liquidity risk
management policy but rather relies on the judgment of the trustees.
The table below summarises the maturity analysis for financial liabilities to their remaining contractual maturities.
Between
1-3 months
Shs
Total
Shs
Year ended 31st December 2015
Other payables
3,000
3,000
Year ended 31st December 2014
Other payables
3,000
3,000
13
The Institute of Certified Public Secretaries of Kenya Benevolent Fund
Financial statements
For the year ended 31st December 2015
NOTES (CONTINUED)
3. Significant judgments and key sources of estimation uncertainty
There are no critical accounting estimates and judgments made in the preparation of the financial statements for the
current year.
2015
Shs
4. Net investment (deficit)/income
Interest from treasury bonds
Interest on bank deposits
(Loss)/gain on market value of unit trust
(Loss)/gain on market value of quoted shares
Dividends
Loss on sale of shares
Gain on treasury bills/bonds
2014
Shs
867,167
2,794
(181,386)
(880,676)
57,478
-
498,000
1,060,266
970,232
72,716
(20,650)
416,445
(134,623)
2,997,009
5. Held-to-maturity investment
The fair values of the held-to-maturity assets at the balance sheet date were:
Non-current
Treasury bonds
Maturity - more than five years
3,018,000
Current
Treasury bills
-
4,050,000
4,800,000
The fair value of the Treasury Bonds and Corporate Bonds carried at cost at the balance sheet date, based on prices
published by brokers (Level 2) were:
2015
Shs
Non- current
Held-to-maturity investments - government securities
2014
Shs
2,982,584
4,045,181
2,800,000
2,800,000
At 1st January
Purchase of shares
Disposal of shares
Fair value (loss)/gain
3,621,842
(880,676)
2,970,235
40,168
(358,793)
970,232
At 31st December
2,741,166
3,621,842
6. Available-for-sale investment
Corporate bonds
7. Financial assets at fair value through profit or loss
a) Financial assets at fair value - equity investments
The fair values of the equity investments are based on quoted prices (unadjusted) in active markets for identical
assets (Level 1).
14
The Institute of Certified Public Secretaries of Kenya Benevolent Fund
Financial statements
For the year ended 31st December 2015
NOTES (CONTINUED)
7. Financial assets at fair value through profit or loss (continued)
b) Financial assets at fair value - unit trusts
Balance fund
Equity fund
Money market fund
At 1st
January
Additions
4,187,700
4,576,950
5,342,781
5,000,000
163,377
183,545
(586,854)
4,351,077
4,760,495
9,755,927
14,107,431
5,000,000
(239,932)
18,867,499
Fair value
(loss)/gain
At 31st
December
The fair values of the unit trusts are based on quoted prices (unadjusted) in active markets for identical assets
(Level 1).
8. Other receivables
Interest receivable
Other receivables
Due from related parties (Note 11)
235,666
5,220
775,320
166,000
1,249
140,580
1,016,206
307,829
9. Cash at bank and in hand
For the purpose of the statement of cash flows, cash and cash equivalents comprise the following:
Cash and bank balances
4,187,638
706,141
3,000
3,000
10. Other payables
Other payables
11. Related party transactions
The Institute of Certified Public Secretaries of Kenya is related to the Fund by virtue of common trustees.
i) Due from related parties (Note 8)
775,320
12. Tax
No provision has been made for taxation. The Fund has applied for a tax exemption certificate from the Kenya
Revenue Authority, the receipt of which is still pending.
15
140,580
The Institute of Certified Public Secretaries of Kenya Benevolent Fund
Supplementary information
For the year ended 31st December 2015
SCHEDULE OF OPERATING EXPENDITURE
2015
Shs
1. OPERATING EXPENDITURE
Bank charges
Financial assistance
Office expenses
AGM expenses
Appendix I
2014
Shs
11,275
270,000
3,540
33,750
14,881
60,000
16,810
72,700
318,565
164,391