IIk financial statements

INSURANCE INSTITUTE OF KENYA | Annual Report and Financial Statements for the year ended 31St December 20131

Annual Report & FinancialStatements

Branding And Corporate Governance: Keys To Growth Of Insurance Business.

INSURANCE INSTITUTE OFKENYA (IIK)

2013



ANNUAL REPORT AND

FINANCIAL STATEMENTS FOR

THE YEAR ENDED 31ST DECEMBER 2013

THE INSURANCE

INSTITUTE OF KENYA



Institute’s Information 2 Report of The Executive Council 3 Statement of Executive Council’s Responsibilities 4 Report of The Independent Auditor 5 Financial Statements: Statement of Comprehensive Income 6 Statement of Financial Position 7 Statement of Changes In Accumulated Fund 8 Cashflow Statement 9 Notes To The Financial Statements 10 -15

Contents Pg


ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2013

INSTITUTE’S INFORMATION PRINCIPAL PLACE OF BUSINESS REGISTERED OFFICE College of Insurance First floor P.O. Box 1200 - 00200 Nairobi, Kenya [email protected] BANKERS Commercial Bank of Africa Limited Standard/Wabera Street Branch P.O. Box 30437 Nairobi, Kenya HON SECRETARY Joseph Jamwaka P.O. Box 1200 - 00200 Nairobi, Kenya AUDITORS Wachira Irungu & Associates Dominion House, Westlands P.O. Box 46671 - 00100 Nairobi

EXECUTIVE COUNCIL MEMBERS


1 Aggrey Mulumbi: Director

2 Caroline Munene: Deputy Director

3 Joseph Jamwaka: Hon Secretary

4 Alex Mutungi: Hon Treasurer

5 Gabriel Karungu: Immediate Past Director

6 Ben Kajwang: Convenor Knowledge Development

7 Grace Ngigi: Convenor Member services

8 Pauline Wanjohi: Convenor Legal & Professional Standards Committee

9 Agnes Macharia: Convenor Public Relations

10 Birian Akwir: Council Member

11 Ezekiel Kimosop: Council Member

12 Kenneth Nyamboga: Council Member

14 Mercy Kiana: Council Member

15 Stephen Kuu:Council Member

17 Teresa Mburu: Council Member

THE INSURANCE INSTITUTE OF KENYA


ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2013 REPORT OF THE EXECUTIVE COUNCIL The Executive Council have the pleasure in presenting their report, and the audited financial statements for the year ended 31st December 2013. 1 PRINCIPAL ACTIVITY The Institute formulates, establishes and maintains a high standard of insurance knowledge through training and developing persons who are its members in Kenya to enhance the practice of insurance and public confidence in the insurance profession. 2 RESULTS The results for the year are set out on page 6. 3 EXECUTIVE COUNCIL MEMBERS The Executive Council members who held office during the year are shown on page 2. 4 AUDITORS The Institute’s Auditors, Messrs Wachira Irungu & Associates were re-appointed during the year and have expressed their willingness to continue in office in accordance with Section 159(2) of the Companies Act (Cap 486). On behalf of the Executive Council HON. SECRETARY---------------------------------------- DATE---------------------------------------

THE INSURANCE INSTITUTE OF KENYA


ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2013 STATEMENT OF THE EXECUTIVE COUNCIL’S RESPONSIBILITIES The Executive Council is required to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the Institute as at the end of the financial year and of its surplus or deficit for that year. The Executive Council is also required to ensure that the Institute maintains proper accounting records that disclose, with reasonable accuracy, the financial position of the Institute. The Executive Council is also responsible for safeguarding the assets of the Institute. The Executive Council accepts the responsibility for the preparation and fair presentation of financial statement 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 responsible in the circumstances.

The Executive Council members are of the opinion that the financial statements give a true and fair view of the financial affairs of the Institute as at 31st December 2013 and of its surplus and cash flows for the year then ended in accordance with the International Financial Reporting Standard for Small and Medium Sized Entities and the Societies Act. Nothing has come to the attention of the Executive Council to indicate that the Institute will not remain a going concern for at least the next twelve months from the date of this statement. Approved by the Executive Council members on and signed on its behalf by: DIRECTOR………………………………………. DATE………………………………………. HON. TREASURER……………………………… DATE………………………………………. HON. SECRETARY…………………………….. DATE………………………………………. THE INSURANCE INSTITUTE OF KENYA


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE INSURANCE INSTITUTE OF KENYA FOR THE YEAR ENDED 31ST DECEMBER 2013 REPORT ON THE FINANCIAL STATEMENTS We have audited the accompanying financial statements of the Insurance Institute of Kenya set out on pages 6 to 15 which comprise the Statement of Financial Position as at 31st December 2013, the Statement of Comprehensive Income, the Statement of Changes in Equity and Cash flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory notes. DIRECTORS’ RESPONSIBILITY FOR THE FINANCIAL STATEMENTS The Executive Council members are responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standard for Small and Medium-sized Entities and the requirements of the 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 to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. 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 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 depended on our professional 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, we considered the internal control relevant to the Institution’s preparation and fair presentation of the financial statements in order to design audit procedures that were appropriate in the circumstances, but not for the purpose of expressing an opinion on the Institution’s internal control.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the executive council, 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 Institute as at 31st December 2013 and of its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standard for Small and Medium-sized Entities and the Societies Act. REPORT ON OTHER REQUIREMENTS


As required by the 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 institute, so far as appears from our examination of those books; and

iii) The Intitute’s statement of financial position and statement of comprehensive income are in agreement with the books of account.

Wachira Irungu & Associates CERTIFIED PUBLIC ACCOUNTANTS DOMINION HOUSE, MUTHITHI ROAD P.O. BOX 46671 - 00100 NAIROBI DATE:………………………


THE INSURANCE INSTITUTE OF KENYAFINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2013STATEMENT OF CHANGES IN ACCUMULATED FUND

Accumulated Fund Total

Kshs Kshs

At 1st January 2012 10,201,268 10,201,268

Surplus For The Year 5,982,290 5,982,290

At 31st December 2012 16,183,558 16,183,558

At 1st January 2013 16,183,558 16,183,558

Surplus For The Year 5,202,348 5,202,348

At 31st December 2013 21,385,906 21,385,906

Net (Decrease)/Increase in Cash and Cash Equivalents 2,233,492 1,253,608

Cash and Cash Equivalents at The Beginning of The Year 4,909,197 2,675,705 1,422,097

Cash and Cash Equivalents at the End of the Year 15 2,779,717 4,909,197 2,675,705

11 PROPERTY & EQUIPMENT

As At 31st December 45,059 64,370 91,957

THE INSURANCE INSTITUTE OF KENYANOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2013 (CONT’D)


2013 2012 2011

Kshs Kshs Kshs

13 INVESTMENTS

Treasury Bonds - 3,296,040 3,000,000

CBA Call deposit 5,257,292 -

CFC Stanbic 1,196,180 1,122,610 1,027,664

CIC Unit Trust 5,280,107 2,081,353 -

British American Fund 5,577,429 3,705,155 2,389,138

17,311,008 10,205,158 6,416,802

14 RECEIVABLES

Accrued Income 2,673,311 2,052,713 1,825,765

2,673,311 2,052,713 1,825,765

15 CASH & CASH EQUIVALENTS

Cash at Bank 2,779,627 4,908,402 2,675,170

Cash in Hand 90 795 535

2,779,717 4,909,197 2,675,705

16 ACCUMULATED FUND

Balance Brought Forward 16,183,558 10,201,268 7,277,054

Surplus for the Year 5,202,348 5,982,290 2,924,214

Balance Carried Forward 21,385,906 16,183,558 10,201,268

17 PAYABLES

Payables 1,507,589 1,165,167 910,345

1,507,589 1,165,167 910,345


THE INSURANCE INSTITUTE OF KENYANOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2013 (CONT’D)

2013 2012 2011

Kshs Kshs Kshs

18 CASH GENERATED FROM OPERATIONS

Surplus for the year 5,202,348 5,982,290 2,924,214

Adjustments for

Depreciation on Property & Equipment 32,887 218,097 158,347

Amortisation of Intangible Assets 19,311 27,587 39,410

Operating Surplus Before Working Capital Changes 5,254,546 6,227,974 3,121,971

Receivables (620,598) (221,948) (728,621)

Payables 342,422 254,822 (1,283,375)

Cash Generated From Operations 4,976,370 6,260,848 1,109,975

19 CONTINGENT LIABILITIES

There were no Contingent Liabilities as at 31st December 2013.

20 CAPITAL COMMITMENTS

There were no Capital Commitments as at 31st December 2013

21 CURRENCY

These financial statements are presented in Kenya Shillings (Kshs).




Annual Report & FinancialStatements

Branding And Corporate Governance: Keys To Growth Of Insurance Business.


2013

IIk financial statements

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