Midrand High School Welcomes you to the Special General Meeting

Midrand High School

Welcomes you to the Special General Meeting

19 April 2010

AGENDA• Welcome

• Vision and Mission

• Financial management control

• Review of 2009 audited accounts

• Income Statement 2009

• Expenses

• Balance Sheet 2009

• Income Statement 2010

• School fee collections

• Exemption statistics

• Resolution

VisionWe prepare Midrand High

School learners to positively engage in our

diverse and dynamic world

Our Mission To engage learners in Academic,Sporting and Cultural activities in a safe teaching and learning environment.

To promote meaningful partnerships among all stakeholders.

To manage the school’s resources effectively.

To attract , develop and maintain competent educators.

To instil positive values and equip learners with the skills to acquire knowledge.

Review of 2009 audited accounts• Scope of Audit

– Conducted in accordance with International Standards on Auditing.

Require that an audit is planned and performed to obtain reasonable assurance about whether the annual financial statements are free of material misstatements.

• The audit examines on a test basis, evidence supporting the amounts and disclosures in the annual financial statement.

• Includes assessing the accounting policies used and significant estimates made by management as well as evaluating the overall financial statement presentation.

Review of 2009 audited accounts

Review of 2009 audited accounts (Cont…)

• Qualification– Not feasible for the school to institute accounting

controls with regard to cash collections from donations and funds raising prior to the initial entry of the collections in the accounting records.

– The audit could not be extended beyond the receipts actually recorded.

• Opinion– Except for the effect of the matter referred to in the

preceding paragraph, the Annual Financial Statements presents fairly, in all material respects, the financial position of the school at December 31, 2009 and the results of its operations and cash flows.

Financial Management Control

• A Section 21 school as determined in the South African Schools Act • Largely financed by parents via the payment of school fees.• The school is managed by the School Governing Body who in turn

vest the management of finances in the Finance Committee. • The current members of the committee are:

– M.Rabothata: Chairperson – R.Ralephata: SGB Chairperson– Ms. N.Mashale: Parent member of SGB– Ms. A. Van Zyl: Principal– I.Oliver: Bursar

• The Committee meets on a monthly basis to consider the monthly financial statements and review all financial aspects of the school.• The schools financial results are audited on an annual basis by professional auditors appointed by the parents in the Annual General Meeting.

Detailed Income Statement for the year ended 31 December 2009

2009R

2008R

Gross revenue

School Fees 7,201,519

6,240,321

Other income 583,053 374,525

Bad debts recovered 0 6,327Interest received 22,340 40,261Profit/(loss) on funds raisedProfit on disposal of fixed assets

97,250

Uniform income 204 70Rent received 297,313 199,077Sundry income 165,946 128,790

Total Income 7,784,572

6,614,846

Expenditure 7,546,724

6,504,142

Surplus 237,848 110,704

Retained profits at beginning of year

2,204,472

2,093,768

Retained profits at end of year 2,442,320

2,204,472

Expenditure Items

2009 2008 Administration R 511 R 603 Bad Debts 1562 1018 +53% Salaries 3008 2817 + 7% Maintenance 554 619

Computer 339 275

Printing 407 334

Insurance 180 154 +17% Telephones 142 128

Security 175 152

2009 2008

Balance Sheet as at 31 December 2009

Notes2009

R2008

R

Assets

Non-current assets 1,960,707 1,988,925

Fixed assets 1,960,707 1,988,925

Loans receivable

Current assets 2,935,780 2,029,454

Accounts receivable and book stock 1,633,348 1,140,388

Bank balance 1,302,432 889,066

Total assets 4,896,487 4,018,379

Equity and Liabilities

Capital and reserves

Accumulated surplus funds 2,442,320 2,204,472

Non-current Liabilities

Borrowings 31,409 118,193

Current Liabilities 2,422,758 1,695,714

Accounts payable 747,847 349,041

Current portion of borrowings 86,783 76,636

School fees received in advance 1,588,128 1,270,037

Provisions - -

Total Equity and Liabilities 4,896,487 4,018,379

Detailed Income Statement to 31 March 2010Actual

RBudget

RGross revenue

School Fees 2,711,057 2,651,250

Other income 141,203 137,000

Bad debts recovered 0 0

Interest received 3,880 6,500

Profit/(loss) on funds raisedProfit on disposal of fixed assets

0 00

Uniform income 0 0

Rent received 72,710 68,500

Sundry income 64,613 62,000

Total Income 2,852,260 2,788,250

Expenditure 2,636,474 2,892,940

Surplus/ (Deficit) 215,786 (104690)

Surplus/ (Deficit) 215,786 (104690)

**An amount of R1,561,562 was reflected as bad debts in our 2009 accounts. This is not necessarily a write-off of debts but rather a prudent provision for bad or potentially bad or doubtful debts.

•Before taking any legal action the school makes every effort to collect the debt or make payment arrangements with non-payers. We also act strictly in accordance with the relevant provisions of the S.A.Schools Act.

•All debt collection is handled in-house including all the necessary legal work. •Non-paying parents will be blacklisted. •We have recently implemented the NAEDO debit order system in order to reduce the level of unpaid debit orders.

DEBTOR COLLECTIONS

FEE EXEMPTIONS Fee exemptions for 2009 totalled R1128431. A total of 166

exemptions were granted giving an average of R6800 per applicant.

For the period January – March 2010 we have granted exemptions to the value of R 602000. A total of 73 exemptions have been granted giving an average of R8246 per applicant.

All exemptions are granted in terms of the relevant provisions of the S.A. Schools Act (Norms and Standards for School Funding). Parents are however encouraged to make whatever voluntary contributions they can afford towards the school fee.

Exemptions

Resolution: Investment of Surplus Funds

In order to do this the School requires a resolution of parents in a general meeting.

It is anticipated that the school will generate surplus funds this year and it is imperative that we invest these funds in order to increase our income.

After discussions with Absa Bank the School Governing Body recommends that the funds be invested in a Fixed Deposit account for a period not exceeding six months at an interest rate of 7% p.a. The interest rate and capital invested are both guaranteed.At the end of the initial period the position will be reviewed in the light of our then financial position.

Permission can then be obtained from the GDE to go ahead with the investment in a second bank account.

PROPOSAL

Funds be invested in an appropriate ABSA account for a period not exceeding six months with guaranteed capital.

PROPOSED: SGBSECONDED: TRAGGY MAEPA

Questions

• Exemptions: What docs are looked at?

• School fees: additional amount for books - is this included?

• What has materialised in recovering bad debts?

• Any bad debt written off? (Provision was made in 2009 for 2009 accounts)

THANK YOU