anrep0607 - Health Systems Trust

CASH FLOW STATEMENT
for the year ended 30 June 2007
Notes 2007 2006
R
R
Cash flows from operating activities
Cash receipts from grants 40,459,619 53,683,243
Cash paid in respect of projects and to employees (51,509,806) (40,647,092)
Cash (used in)/from operations 11 (11,050,187) 13,036,151
Net finance income 1,630,923 1,021,480
Net cash (used in)/from operating activities (9,419,264) 14,057,631
Cash flows from investing activities
Proceeds from disposal of property, plant and equipment 13,776 1
Acquisition of property, plant and equipment (3,286,833) (674,049)
Net cash used in investing activities (3,273,057) (674,048)
Cash flows from financing activities
Proceeds from interest bearing borrowings 2,079,233 -
Net cash from financing activities 2,079,233 -
Net (decrease)/increase in cash and cash equivalents (10,613,088) 13,383,583
Cash and cash equivalents at beginning of year 30,122,077 16,738,494
Cash and cash equivalents at end of year 9 19,508,989 30,122,077
NOTES TO THE ANNUAL FINANCIAL
STATEMENTS
for the year ended 30 June 2007
1. Summary of significant accounting policies
The principle accounting policies applied in the preparation of
these financial statements are set out below. These policies
have been consistently applied to all the years presented,
unless otherwise stated.
1.1. Basis of preparation
The financial statements have been prepared in accordance
with South African Statements of Generally Accepted
Accounting Practice (SA GAAP). The financial statements have
been prepared under the historical cost convention.
The preparation of the financial statements in conformity
with SA GAAP requires the use of estimates and assumptions
that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts of
revenues and expenses during the reporting period based on
management’s best knowledge of current events and actions.
Actual results may ultimately differ from these estimates.
During the current year, there are no areas involving a
higher degree of judgement or complexity, or areas where
assumptions and estimates are significant to the financial
statements.
1.2. Standards, interpretations and amendments to
published standards that are not yet effective
a) Standards, amendments and interpretations effective in
2007 but not relevant to the trust
The following standards, amendments and interpretations
are mandatory for accounting periods beginning on
or after 1 July 2006 but are not relevant to the Trust’s
operations:
▪ IAS 19 (Amendment), Employee Benefits;
▪ IAS 21 (Amendment), Net Investments in a Foreign
Operation;
▪ IAS 39 (Amendment), Cash Flow Hedge Accounting of
Forecast Intragroup Transactions;
▪ IAS 39 (Amendment), The Fair Value Option;
▪ IAS 39 and IFRS 4 (Amendment), Financial Guarantee
Contracts;
b)
▪
▪
▪
▪
▪
IFRS 1 (Amendment), First-time Adoption of
International Financial Reporting Standards and
(Amendment), Exploration for and Evaluation of
Mineral Resources;
IFRS 6, Exploration for and Evaluation of Mineral
Resources;
IFRIC 5, Rights to Interest arising from
Decommissioning, Restoration and Environmental
Rehabilitation Funds;
IFRIC 6, Liabilities arising from Participating in a
Specific Market – Waste Electrical and Electronic
Equipment.
IFRIC 7, Applying the Restatement Approach under IAS
29, Financial Reporting in Hyperinflationary Economies
Standards, Amendments to existing Standards and
Interpretations to existing Standards that are not yet
effective and have not been early adopted by the Trust
▪ IFRS 7, Financial Instruments: Disclosures (Effective for
annual periods beginning on or after 1 January 2007).
▪ IFRS 7 introduces new disclosures to improve the
information about financial instruments. It requires
the disclosure of qualitative and quantitative
information about exposure to risks arising from
financial instruments, including specified minimum
disclosures about credit risk, liquidity risk and market
risk, including sensitivity analysis to market risk. It
replaces disclosure requirements in IAS 32, Financial
Instruments: Disclosure and Presentation. The adoption
of this standard will only impact the format and extent
of disclosures presented.
▪ Amendment to IAS 1; Presentation of Financial
Statements: Capital Disclosures (Effective for annual
periods beginning on or after 1 January 2007).
The amendment to IAS 1 introduces disclosures about
the level of an entity’s capital and how it manages
capital. The adoption of this standard will only impact
the format and extent of disclosures presented.
▪ IFRIC 9, Reassessment of Embedded Derivatives
(Effective for annual periods beginning on or after 1
June 2006).
▪ IFRIC 11, Group and Treasury Share Transactions
(Effective for periods beginning on or after 1 March
2007).
HEALTH SYSTEMS TRUST 46 ANNUAL REPORT 2006/07