ZOGHORI Sacco Society Ltd Auditor: Ministry of Agriculture, Livestock, Fisheries & Co-operatives, Sate Department for Co-operatives, Audit Services, P.0.Box 40811 - 00100 Nairobi CS NO 10728 Annual Report & Financial Statements For the Year Ended 31st December, 2020
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ZOGHORI Sacco Society Ltd
Auditor:
Ministry of Agriculture, Livestock, Fisheries & Co-operatives,
Sate Department for Co-operatives,
Audit Services,
P.0.Box 40811 - 00100
Nairobi
CS NO 10728
Annual Report & Financial Statements
For the Year Ended 31st December, 2020
Contents Page
Society Information 1
Report of the Management Committee 2
Statistical Information 3
Statement of the Management Committee’s
Responsibilities 4
Report of the Independent Auditor 5
Financial Statements:
Income Statement 6
Balance Sheet 7
Statement of Changes in Equity 8
Cash Flow Statement 9
Notes 10-17
CS NO 10728 ZOGHORI Sacco Society Ltd
Table of Contents
Society Information
Management and Supervisory Committee Members:
Management Committee Members:
Chairman Danson Mwalukware Josai
Vice Chairman Davis Mwachofi
Hon. Secretary Brian Mwakesi Lewela
Treasurer Edward Maganga Mwandoto
Member Angus Mwaiseghe Disii
Member Mary Chughu Mwanyota
Member Sophy Sanguli Patrick
Member Catherine Mwalukware Chola
Member Basil Tangai Ngoma
Supervisory Committee Members:
Chairman William Ngereza Mwatela
Secretary Eunice Mbala Mwalimo
Member Annah Masagho Tangai
Registered Office:
TILU BILU BUILDING,
1st Floor, Next to NO MANENO PLAZA,
OPPOSITE GPO/HUDUMA CENTRE, MOMBASA
DIGO RD
P.O. Box 86838,
Mombasa
80100
Principal Bankers:
Co-operative Bank of Kenya,
Nkurumah Road Branch
KCB
Kenyatta Avenue Branch
Auditor:
Ministry of Agriculture, Livestock, Fisheries & Co-operatives,
Sate Department for Co-operatives,P.0.Box 40811 - 00100
Nairobi
Page 1
Report of the Management Committee
Incorporation
Principal Activity
Results 31.12.2020 31.12.2019
Kshs Kshs
Surplus (Deficit) Before Tax 2,228,966.00 2,226,192.00
Income Tax Expense (289,394.00) (573,722.00)
Net Surplus (Deficit) After Tax 1,939,572.00 1,652,470.00
Dividends (1,120,096.00) (983,656.00)
Transfer to SRF (387,915.00) (330,494.00)
Honororium (110,000.00) (110,000.00)
Retained Surplus for the Year 321,561.00 228,320.00
Interest on Members' Deposits @ 3.0% 3,267,326.00 4,402,514.00
Dividends on Members Shares KES 1.00 per Share 1,120,096.00 983,656.00
Total 4,387,422.00 5,386,170.00
Dividend / Interest on Members’ Deposits
Management Committee
Auditors
By order of the Management Committee
Signature……………………………… Date: 17th March, 2021
Secretary
The Management Committee submit their annual report together with the audited financial
statements for the year ended 31st December, 2020.
The society is incorporated in Kenya under the Co-operative Societies Act, Cap 490 and is
domiciled in Kenya.
The principal activity of the society continued to be receiving savings from and provision of loans
to its members.
The Management Committee recommends payment of interest on members’ deposits and
dividend on shares @ 3.0% and KES 1.00 per share respectively (2019 @ 4.5% and KES 1.00 )
The Management Committee who served during the year and to the date of this report is as
listed on page 1.
The Co-operative Audit Services have expressed their willingness to continue in the office, under
the terms of section 25(4) of the Co-operative Societies Act, No. 12 of 1997 as Amended in 2004.
Page 2
Statistical Information As At 31st December, 2020
Membership 31.12.2020 31.12.2019
Active 2877 2566
Dormant 474 241
3351 2807
Financial Kshs Kshs
Share Capital 22,401,915.00 19,673,120.00
Members’ Deposits 108,910,868.00 96,849,717.00
Statutory Reserve 1,285,867.00 897,952.00
Revenue Reserve 1,810,548.00 1,491,287.00
Entrance Fees 548,200.00 373,000.00
Loans to Members 94,293,645.00 89,600,375.00
Investments 16,946,500.00 26,575,676.00
Other Non-Current Assets 18,817,539.00 3,407,838.00
Dividend Rate on Members Share Capital (KES) 1.00 1.00
Page 3
Page 4
Statement of Management Committee Responsibilities SACCOs Act, No. 14 of 2008 requires the Management Committee to prepare financial statements for each year, which give a true and fair view of the state of affairs of the society as at the end of the financial year and of its operating results for that year in accordance with IFRS. 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 and ensuring that the business of the society has been conducted in accordance with its objectives, by-laws and any other resolutions made at the society’s general meeting. The Management Committee accepts responsibility for the annual financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgments and estimates, in conformity with International Financial Reporting Standards and in the manner required by the SACCO Society’s Act No. 14 of 2008. The Management Committee is of the opinion that the financial statements give a true and fair view of the state of the financial affaires of the society and of its operating results in accordance with the IFRS. The Management Committee further accepts responsibility for the maintenance of accounting records, which may be relied upon in the preparation of financial statements, as well as adequate systems of internal financial control. Nothing has come to the attention of the Management Committee to indicate that the Society will not remain a going concern for at least twelve months from the date of this statement. Approved by the Management Committee on 17TH March, 2021 and signed on its behalf by: ………………………………….. Chairman Signature ………………………………….. Committee Member Signature ………………………………….. Committee Member Signature
Page 5
Report of the Independent Auditor to the Members of ZOGHORI Savings & Credit Co-operative Society Ltd We have audited the accompanying financial statements of ZOGHORI Savings & Credit Co-operative Society Ltd set out on pages 6 to 17 which comprise of the statement of financial position as at 31st December, 2020 and the statement of comprehensive income, statement of changes in owner’s equity and statement of cash flows for the year then, ended and a summary of significant accounting policies and other explanatory notes.
The Management Committee Responsibility for 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 Kenyan Sacco’s Societies Act. This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due fraud or error, selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances. The Kenyan Sacco’s Societies Act also requires the Management Committee to ensure that the society maintains proper books of accounts, which are in agreement with the balance sheet and comprehensive income statement.
Auditor’s Responsibility Our responsibility is to express an independent opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards 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 risks of material misstatements, whether due to fraud or error. In making those risk assessments the auditor considers the internal control relevant to the Society’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 society’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Management Committee, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion In our opinion, subject to making sufficient provisions as envisaged by IFRS 9 for the loan balance carrying amount to be fairly represented, the financial statements give a true and fair view of the state of the Society’s affairs as at 31st December, 2020 the results of its operations and cash flows for the year then ended in accordance with International Financial Reporting Standards and the requirements of the Kenyan Sacco Societies Act.
Report on Other Legal Requirements As required by the Kenyan Sacco Societies Act, we report to you that the financial statements are in agreement with the books of account kept by the Society and that, based on our audit, nothing has come to our attention that causes us to believe that the Society’s business has not been conducted: a) in accordance with the provisions of the Co-operative Societies Act and Rules, b) in accordance with the Co-operative Societies objectives, by-laws and any other resolutions made by the
Society at a general meeting
FOR AND ON BEHALF OF AUDIT SERVICES, MINISTRY OF AGRICULTURE, LIVESTOCK, FISHERIES & CO-OPERATIVES, STATE DEPARTMENT FOR CO-OPERATIVES
OMUNYASIA MAKOKHA COUNTY DIRECTOR OF CO-OPERATIVE AUDIT MOMBASA COUNTY DATE………………………………………….
CS NO 10728 - Zoghori Savings & Credit Co-operative Society Ltd
Statement of Comprehensive Income
For the Year Ended 31st December, 2020
Notes 31.12.2020 31.12.2019
Revenue: Kshs Kshs
Interest from Members Loans 2 11,815,990.00 10,513,632.00
Other Interest Income 3 1,674,047.00 1,236,953.00
Interest Expenses 4 (3,321,591.00) (4,402,514.00)
Net Interest Income 10,168,446.00 7,348,071.00
Other Operating Income 5 1,375,746.00 2,361,574.00