Contents - Principal Officers Association

ContentsPage numbersReport from our Chairperson 3Message from our CEo 6Meet our Board 7Meet our Secretariat 7Committees 8POA Activities 8• Summer Tutorials 8• Seminars 9• Winter Conference 9• Women’s Day Celebrations 10• Imbasa Yegolide Awards 11Agenda: Seventh Annual General Meeting 12Minutes: Sixth Annual General Meeting 14Corporate sponsorships 2009 and 2010 16Financials 172011 Highlights - Book these dates and support your organisationEvent Date (2011)Summer Tutorials21 & 22 FebruaryFirst Seminars12,13,14 & 15 AprilImbasa Yegolide Awards6 JuneWinter Conference6 & 7 JuneSecond Seminars26, 27, 28 & 29 JulyWomen’s Day Celebration Cape Town 5 AugustWomen’s Day Celebration Johannesburg 19 AugustContact UsPrincipal Officers Association, Tel: (011) 805 6340, Fax: (011) 805 2388Email: info@poa.org.za / ceo@poa.org.zawww.poa.org.za

Report from our ChairpersonCreating an organization that nurtures the professional development ofPrincipal Officers has long been top of our Agenda. It has become vitalfor us to groom our Principal Officers to be able to deal competentlywith the complex issues they now have to face in the retirementfunds industry. More recently we have focused on developingthe POA professionally by introducing a Code of Conduct for allmembers and by continuing with our project of professionalizationof the occupation of Principal Officer. We want the Principal Officerto be recognized as a top-notch professional who is an expert ingovernance, risk management, legal issues and administration. Thisendeavour will raise his or her profile, and enhance their status aspotential leadership material.The period under review has been an exciting one.Our CommitteesOur Board Committees have been hard at work to enhance the valueoffering of the POA. We have managed to streamline the performanceof the Committees by developing clear mandates for each of them.The Marketing Committee has developed some excellent seminar topicsand it has arranged for top speakers to address our members on topicalissues. The Governance & Technical Committee was instrumental inensuring that the tutorial training material on the Pension Funds Actmet the appropriate standards. The Professionalization Committeehas worked tirelessly to get us to a place where we are much closerto registering the occupation of Principal Officer. And the Finance &Audit Committee has ensured that we spend our money sensibly andin such a way so as to achieve maximum return of value.A word on professionalizationIt is becoming clearer every year that the role of the Principal Officerand the trustee ought to be a full-time professional one. Retirementfunds that are to be run effectively simply demand too much in termsof time and expertise for their management to be undertaken on apart-time basis. In addition, the fact that many Principal Officers andtrustees are not remunerated for performing their important functionsis contrary to the spirit of good governance and accountability,which demands willing, full-time commitment in managing members’retirement monies – or so it may be argued.3 4The POA wishes to get involved in the competency development of Principal Officers toprepare them for the continuous professional development requirements that will inevitablyfollow professionalization. We believe that attendance and participation in POA sessions,such as the seminars and Winter Conference, will ensure that our members are better offas professional Principal Officers.POA EventsThe 2010 Winter Conference was a great success where we unpacked the theme “YourProfession – Your Integrity”. Our Imbasa Yegolide Awards gala dinner was held successfullyfor the second time in a row at a prestigious venue in Sandton. And for the first time wetook our Summer Tutorials to Cape Town and Durban in the second half of 2010 (whichwas in addition to the national Tutorials that were held in February 2010). This meansthat the Tutorials were on offer in the home provinces of many of our members and otherstakeholders.Our Corporate SponsorsWithout the sterling commitment and generous support of our sponsors we would notbe able to function as an organization. I would like to extend my sincere thanks to eachCorporate Sponsor for their willingness to support us, not only in terms of financialassistance but also for their wholehearted enthusiasm for our different projects. Thank youfor your commitment to the role of the Principal Officer and your faith in the POA brand.Financial MattersThe POA was not unaffected by the financial crisis, and prudence and vigilance wererequired from everybody within the sector. You will notice that the Association incurred anet loss of R386 420 during the year ending February 2010. Strict budgetary control wasexercised, and the Board of Directors implemented the following measures in order toaddress the insolvent position:• additional sponsorships were obtained for the next financial year;• more income generating projects have been undertaken;• membership fees were increased; and• projects were avoided that could potentially realise deficits.I am pleased to report that the POA finances have recovered during the 2010/2011 financialyear and that we are solvent going forward.Matters ArisingAt our last AGM it was agreed that the POA Board would appoint Directors to fill thevacancies which had arisen as a result of the resignations of, amongst others, Mr BongaMokoena and Mr Peter Zibi. Mr Eddie Erasmus and Ms Desiree Meyer have also resignedafter that decision. Appointments to these vacancies have to be confirmed at this year’sAGM.Your Profession - Your 1 IntegrityYour Profession - Your Integrity

We went through an extensive process to fill the vacancies. Members had the opportunityto nominate candidates, apply for the position, or to be co-opted onto the Board. Thisresulted in the Board’s appointment of three new Directors: Mr Johan de Waal, Mr SibusisoLuthuli and Mr Isgaak Jarodien.Their appointments took place as follows:Mr Johan de WaalThe Board upheld the members’ wishes, expressed by their nomination of Mr de Waalat the last AGM, by recommending him as a Director at their meeting of 7 July 2010.He is the Principal Officer of the Novel Platinum Pension Fund, the Impala ProvidentFund, the Impala Refineries Provident Fund and the Impala Medical Plan.5 Meet our Board 6Message from our CEOI would like you to consider for a moment the year 2010 and what itmeant to South Africa. 2010 was the year of the World Cup. It wasour chance to show the rest of the world what we were capable of.Towards the end of 2009, the excitement was almost tangible,and then, the year 2010 itself proved to be a tremendous one. Weexceeded our expectations in hosting a huge event and left manyvisitors impressed with what we have to offer. And, almost withoutany warning, the event was over, and that great year has now cometo an end.Mr Sibusiso LuthuliAt our Board Meeting of 7 July 2010 it was decided to recommend Mr Sibusiso Luthulifor appointment to the Board. This was because he had been nominated for electionby the members. He is the Chief Executive Officer and Principal Officer of the EskomPension and Provident Fund.Mr Isgaak JarodienAt the Board meeting of 17 January 2011, Mr. Isgaak Jarodien was recommended forappointment after a lengthy process of interviews was completed. He is the PrincipalOfficer of Illovo DB & DC Pension Fund and Illovo Retirement Benefit Fund.It is now up to you, the members of the POA, to confirm the appointment of these threeDirectors; you will be given the opportunity to do so at this year’s AGM.Thank youI would like to thank all members for their support of our organization. I believe thistranslates into a positive message about the value of the POA in the retirement fundsindustry.I would also like to thank our retiring Board Directors. To Peter Zibi, Bonga Mokoena,Eddie Erasmus and Desiree Meyer, thank you so much for your hard work and tirelesscommitment to the work of the POA.Please let me express a big thank you to the POA Board, as well as the Secretariat underthe leadership of Anne-Marie D’Alton, for their support and dedication to serve the POAand the industry at large.I believe that, at the POA, we continue to share the spirit andenthusiasm of that year. I would like to see us harness the enthusiasmof that period and put it to work in our roles as Principal Officer andprofessional trustee. I believe that the success of our Tutorials andConferences are indicative of what we can achieve together, and Ihope to see us grow from strength to strength as an organization.Your membership is enormously valuable to us.In my previous message I undertook to empower the Principal Officerto deal with his or her challenges effectively. I hope we have livedup to these undertakings. I believe that professionalization is almostcertainly the one thing that will take us to where we want to be, asempowered professionals, and I look forward to the day when therole of Principal Officer is widely recognized as being much more thanjust a statutory position.I would like to take this opportunity to thank the Chairperson of theBoard – Wanjiru Kirima – for her commitment and enthusiasm towardsthe role of the Principal Officer. I would also like to say thank you tothe POA Board for their consistent guidance and support in a range ofspecialist areas. And finally I would like to thank the Secretariat – myteam – for their positive attitude and hard work.Let us make 2011 the best year yet. I look forward to meeting withyou at all our upcoming events and trust that you will find them bothchallenging and rewarding.Let’s make 2011 a year of greatness.Your Profession - Your IntegrityYour Profession - Your Integrity

Meet our Board7 Meet our Board 8CommitteesChairpersonMW KirimaVice ChairpersonAS CrawfordCEOP MayneDirectorMJ RamataboeDirectorMS de KlerkDirectorDV MeyerDirectorHJ VersterGGW HughesDirectorL KhangalaDirectorMeet our SecretariatName of CommitteeFinance & AuditGovernance & TechnicalProfessionalisationMarketingPOA ActivitiesMembersMark de Klerk (Chairperson)Patrick MayneDesiree MeyerMaemili RamataboeLavinia Khangala (Chairperson)Gary HughesDesiree MeyerPatrick MayneAndrew Crawford (Chairperson)Gary HughesPatrick MayneMark de Klerk (Chairperson)Lavinia KhangalaThe POA was busy in 2010 with its usual calendar of events. Our programme comprisedthe Summer Tutorials, the Winter Conference and three sets of seminars across thecountry. For the first time we took the Summer Tutorials to both Durban and Cape Townowing to demand. There were also two Women’s Day events: one in Johannesburg andone in Cape Town.Summer TutorialsOur national Summer Tutorials took place in February 2010 and were based on thePension Funds Act. Facilitators from Hunter Law were available to help explain some ofthe intricacies of this piece of legislation and the delegates found the sessions valuable.The material was developed by Resolve Encounter Consulting. We repeated the Tutorialsin Cape Town during August, and in Durban during October.Anne-MarieD’AltonChristo Snyman Lucretia Mosing Jabu MngxekezaMarketing and Finance and Personal AssistantResearch Manager Administration Manager and SecretaryDate City Attendance Figure15 & 16 February 2010 Johannesburg 10626 & 27 August 2010 Cape Town 2328 & 29 October 2010 Durban 22Your Profession - Your IntegrityYour Profession - Your Integrity

SeminarsOur first seminars were held in March 2010 where we discussed investment discipline,responsible investing and infrastructure assets. Our Johannesburg, Cape Town and Durbanmembers were addressed by Selwyn Jehoma, Deputy Director of Social Development and,in addition, our Cape Town members were addressed on the topic of Draft Regulation28. Our sponsors for the March seminars were Metropolitan, Riscura and Old MutualInvestment Group.The next set of seminars was held in August 2010. These seminars were sponsoredby Momentum, Acsis and State Street and the topics covered dealt with strengtheningthe DC fund model for the future, the question of who the monies in a retirement fundactually belong to, as well as the new FSB code of conflict. We were privileged to have theFSB present at these seminars to help clarify and explain the code of conflict.Our last seminars were held in November 2010. The main sponsors were the StandardBank / BNY Mellon alliance, Taquanta and NMG. The topics discussed were on risk benefitre-broking, exchange-traded funds and asset manager fees.MonthAttendanceWinter ConferenceMarch 2010 126August 2010 119November 2010 91The attendance figure for the Winter Conference was 276. Our 2010 Winter Conferencewas held at the Sandton Convention Centre on 31 May and 1 July and our Conferencetheme was “Your Profession – Your Integrity”.The Summit TV session had as its topic “Friends and Enemies of Board Effectiveness” andthe quizmaster was well-known journalist, Bruce Whitfield. The panel looked at variousthorny issues that have an effect on the effectiveness of boards of trustees.The 2010 Conference also saw a new development, namely the Instructional Courses.Delegates were given the opportunity to choose a course which interested them and hadto register for the course on the first day of the Conference. The Instructional Courseswere an intensive, 90-minute session which allowed delegates to come to grips witha particular topic or challenge that they face in their everyday working environment.Examples of some of the courses that were on offer are: “Service Level Agreements andother contract audits and reviews” and “Putting an effective risk management plan inplace”.9 10Women’s Day CelebrationsFor the first time the POA held two Women’s Day events in 2010 instead of the usualsingle event. The charities supported were the Olievenhoutbosch action campaign tosupport the elderly in Johannesburg, while in Cape Town the women supported the Matlaa Bana project. The POA partnered with the FPI, the IRF and the PLA in the Women’s Dayevents.Date City Attendance20 August 2010 Johannesburg 8927 August 2010 Cape Town 28Beneficiaries of the POA Women’s Day Event were Olievenhoutbosch inJohannesburg and Matla a Bana in Cape Town.Your Profession - Your IntegrityYour Profession - Your Integrity

Imbasa Yegolide AwardsOur Imbasa Yegolide Awards were held for the second year running. The event took placeat the Sandton Sun Hotel and was enormously successful – there was an attendancefigure of 480. We believe that the Awards are now a firm event on the industry calendar.As usual, Principal Officers made their voices heard by nominating service providers whomthey felt had rendered excellent service to their funds.The POA wishes to thank Cadiz Asset Management and Franklin Templeton Investmentsfor their generous contribution towards making the evening such a success. The POA alsothanks Eversheds for being the draw sponsor for the evening.11 12Agenda: Seventh Annual GeneralMeetingTHE PRINICPAL OFFICERS ASSOCIATION OF SOUTH AFRICA “POA” (Incorporatedunder section 21) NOTICE TO MEMBERSNOTICE IS HEREBY GIVEN that the SEVENTH ANNUAL GENERAL MEETING of the PRINCIPALOFFICERS ASSOCIATION OF South Africa (“POA”) shall be held at The Ballroom at SerengetiClubhouse, Serengeti Golf and Wildlife Estate, R25 Bronkhorstspruit off ramp just off the R21Highway (entrance on the R25 towards Bronkhorstspruit), Kempton Park, Gauteng on Tuesday, 22February 2011 at 12H40 for the following purposes:Congratulations to our category winners:• Manager of managers of the Year - 27four Investment Managers• Custodian of the Year - Standard Bank• Cash Manager of the Year - STANLIB Asset Management• Equities manager of the Year - Coronation Fund Managers• Multi-Manager of the Year - Investment Solutions Limited• Global manager of the Year - Investec Asset Management (Pty) Ltd• Overall investment manager of the Year - Coronation Fund Managers• Socially responsible investor of the Year - Cadiz Asset Management• Transition manager of the Year - Cadiz Securities• Investment consultant of the Year - Fifth Quadrant Actuaries & Consultants• Law firm of the Year - Hunter Employee Benefits Law (Pty) Ltd• Trust administrator of the Year - Fairheads Benefit Services• Employee benefits administrator of the Year - Old Mutual Corporate• Employee benefits consultant of the Year - Seshego Benefit Consulting (Pty) Ltd• Risk manager / underwriter of the Year - Metropolitan Employee Benefits• Risk Manager of the Year: Investments - RisCura Analytics• Hedge fund provider of the Year - Edge Capital (Pty) Ltd• Tracing Agent of the Year - The Data Factory• Umbrella Fund Administrator of the Year - Sanlam Employee Benefits: Umbrella Solutions• Training provider of the Year - Tony Remas, Compliance Consultant: Retirement FundsYour Profession - Your IntegrityORDINARY BUSINESS1. To receive and approve the minutes of the Sixth Annual General Meeting of the POA held on16 February 20102. To confirm the chairperson for the period 16 February 2010 to 22 February 2011.3. To receive, consider and approve the audited Annual Financial Statements for the period1 March 2009 to 28 February 2010 together with the reports of the directors andauditors thereon.4. To receive the Chairperson’s report5. To confirm new appointments to the board in line with 4.4. of the minutes dated16 February 20106. To elect directors in accordance with the provisions of Article 11 of the Articles of the Association.One third of the directors shall retire by rotation at every annual general meeting, however theretiring directors shall be eligible for re-election. The following directors shall retire by rotation:6.1 Wanjiru Kirima – Available for re-election6.2 Gary Hughes – Not available for re-election6.3 Lavinia Khangala – Not available for re-electionNote: In approving the re-election of retiring directors, Article 11.7 of the Articles of Association isimportant. Article 11.7 of the Articles of Association provides that unless a member is recommendedby the Board of directors that member is not eligible for election as a director at the AGM. However,any member would become eligible for election as a director at the AGM provided that no lessthan 10 (ten) days before the date of the AGM, there is provided to the Company Secretary ofthe Association, a written notice setting out the intention by no less than 2 members to propose amember for election, accompanied by such member’s willingness to be elected.7. To notify members that the board intends to review to Articles of Association to comply with thenew Companies Act, 2008 and the King III Code of Corporate Governance in South Africa.8. To re-appoint KPMG Inc as the Auditors for the forthcoming year and to confirm their remunerationfor the year that ended 28 February 2010.Your Profession - Your Integrity

GENERAL INSTRUCTIONSAny member entitled to attend and vote is entitled to appoint a proxy to attend, speak and voteat an Annual General Meeting in his stead. A form of proxy should be properly completed andforwarded to reach the company secretary by not later than 48 hours before the time of themeeting.Board MembersNot Available for Rotation• Gary Hughes• Lavinia KhangalaAvailable for Rotation15 JANUARY 2010BY ORDER OF THE BOARDWanjiru Kirima. Until recently, Wanjiru Kirima was the Principal Officerof the Shell and SAPREF Pension Funds in South Africa. She also heldthe portfolio of Global Trustee Support within the Shell Global PensionsGroup. Wanjiru now heads up Group Pensions at First Rand.New Appointments to the Boardto be confirmed at this agmSibusiso Luthuli is the Chief Executive Officer and Principal Officer ofthe Eskom Pension and Provident Fund. He has a background in bankingand was formerly CEO of Ithala Bank Limited, a wholly-owned subsidiaryof the Ithala Development Finance Corporation Limited. He also servesas the non-executive Chairman of Cipla Medpro Pharmaceuticals Limitedand is a non-executive Director of Telkom SA Limited.Isgaak Jarodien is currently Principal Officer of Illovo DB & DC PensionFund and Illovo Retirement Benefit Fund. He is an admitted Attorney anda Certified Financial Planner (CFP) with a total of eleven (11) years legalexperience, six (6) of which relates to the financial services industry.13 14Johan de Waal is employed by Implats as the Group’s EmployeeBenefits Manager. He is the Principal Officer of Novel Platinum PensionFund, Impala Provident Fund, Impala Refineries Provident Fund andImpala Medical Plan. He is also the Chairman of the Impala WorkersProvident Fund and the Implats Beneficiary Fund. He has been active inthe retirement industry since 1998. At Implats he is responsible for thelong-term benefits of employees.Minutes: Sixth Annual GeneralMeetingPRINCIPAL OFFICERS ASSOCIATION OF SOUTH AFRICA(Incorporated under section 21)Minutes of the Sixth Annual General Meeting of the Principal Officers Association of South Africa(“POA”) held on Tuesday, 16 February 2010 at 14:10 in the Village Hall at Midrand ConferenceCentre, 661 Pendulum Street, Midrand.PresentApologies receivedNoticeConstitutionProxies: As per attendance register: Six apologies were received. Please refer to Apology Register: The notice convening the meeting was taken as read.: With the necessary quorum present, the Chairperson, Ms WanjiruKirima, declared the meeting duly constituted.: One proxy in favour of the longest-serving Director present at themeeting.1. MINUTES OF THE PREVIOUS MEETINGThe minutes of the meeting held on 10 February 2009 were approved page by page. The Chairpersonmoved that the minutes be taken as read and signed by her as a correct record of the proceedings.Mr Mark de Klerk seconded the proposal and there were no objections. The minutes were adoptedas a correct record of proceedings.2. Annual Financial Statements for the period ending28 February 2006.The Chairperson reported that the Annual Financial Statements for the period ending 28 February2009 had been circulated electronically on 5 February 2010 and that they had been posted onthe POA website. She proposed that the Annual Financial Statements be taken as read. This wasseconded by Mr Johan de Waal. The Chairperson then moved that the Annual Financial Statementsbe approved and adopted and that all acts and things undertaken by the Directors on behalf ofYour Profession - Your IntegrityYour Profession - Your Integrity

the Association during the period under review be confirmed. Mr Tebogo Tlatsana seconded theproposal. The motion was carried by majority vote.15 16number of Directors appointed to the Board cannot exceed 12. She said that the new appointmentswould be confirmed at the next AGM.3. Chairperson’s AddressThe Chairperson delivered the Chairperson’s Address to the meeting.2. MATTERS ARISING FROM THE PREVIOUS MEETING2.1 Successful distribution of documents to membersA few members had commented at the previous AGM that they had not received the AGM noticetogether with the Annual Financial Statements for the period under review. Also, no copies of theAnnual Financial Statements had been available at the meeting in 2009. The meeting had advisedthe Secretariat to scrutinize the distribution list before distribution of documents in the future.The Chairperson confirmed that the list had been scrutinized and that delivery receipts had beenrequested on dispatch. Where deliveries were unsuccessful, follow-up calls had been made. For thefirst time, the Annual Financial Statements had been posted on the website, and copies were alsoavailable at the meeting. The Chairperson advised that this practice would continue to be followedin the future.2.2 Presence of potential future Board members at the AGM where nominationand election takes placeA request had been made that the Board consider an amendment to the Articles of Associationrequiring the physical presence of potential Board members at the AGM before the nomination orelection of such a person as a POA Director could take place. The Chairperson reported that theBoard had discussed the matter at length and had resolved that such a practice was not commonand that it would not be practical. For any business to be transacted at the AGM, all that would berequired is the presence of the necessary quorum, namely five members and five Board membersat the commencement of the meeting. However, the Board does and will continue to encourageDirectors to make every effort to be present at the AGM.2.3 The number of members on the Board3. Elections of DirectorsThe Chairperson proceeded with the election of rotating directors. She reported that:• the retiring Directors who had made themselves available for re-election in accordancewith Article 11.1 of the Articles of Association were Mr Patrick Mayne, Ms MaemiliRamataboe and Ms Desiree Meyer; and• a nomination had been received for the appointment of Mr Johan de Waal as a Directorin accordance with Article 11.7 of the Articles of Association.The Chairperson reported that the CV’s of all four candidates had been circulated but that therewere only three Directors’ positions to be filled. She said that the election of Directors would takeplace by ballot and that only Full Members could vote. The meeting proceeded to vote.After a short adjournment for the counting of ballot papers the Chairperson announced the resultsof the vote. She moved that, in accordance with the results of the vote, the following three Directorsbe approved and confirmed: Mr Patrick Mayne, Ms Desiree Meyer and Ms Maemili Ramataboe. Themotion was seconded by Mr Jeremiah Sithole. The Chairperson congratulated the Directors soelected.6. APPOINTMENT OF AUDITORThe chairperson proposed, seconded by Mr Stanley Mathonzi and approved by majority vote, thatthe current auditors, KPMG Inc., be re-appointed for the forthcoming year.Sponsorships 2009 and 2010It had been proposed that the size of the Board be increased from 10 Directors to 12 Directors. (TheArticles of Association provide for 12 Directors.) The Chairperson reported that the proposal hadbeen accepted and that the Board would now comprise no more than 12 Directors.2.4 Filling vacancies on the BoardThe Chairperson reported that the Board currently comprises nine Directors, including theChairperson. Two directors (Mr Bonga Mokoena and Mr Peter Zibi) had resigned at the end of 2009.She advised that the Board would appoint Directors to fill the vacancies and said that the totalYour Profession - Your IntegrityYour Profession - Your Integrity

FinancialsThe annual financial statements for the period ending 29 February 2009 as well as thereport of the independent auditors to the members of the Principal Officers Associationis attached for your convenience and forms an integral part of this report.The Principal Officers Association of South Africa (Association Incorporated under Section21 of the Companies Act) Registration number: 2002/018706/08Directors’ responsibility statementThe company’s directors are responsible for the preparation and fair presentation of the annualfinancial statements of The Principal Officers Association of South Africa, comprising thestatement of financial position at 28 February 2010, and the statements of comprehensive income,changes in equity and cash flows for the year then ended, and the notes to the financial statements,which include a summary of significant accounting policies and other explanatory notes, and thedirectors’ report, in accordance with South African Statements of Generally Accepted AccountingPractice and in the manner required by the Companies Act of South Africa.The directors’ responsibility includes: designing, implementing and maintaining internal controlrelevant to the preparation and fair presentation of these financial statements that are free frommaterial misstatement, whether due to fraud or error; selecting and applying appropriate accountingpolicies; and making accounting estimates that are reasonable in the circumstances.The directors’ responsibility also includes maintaining adequate accounting records and an effectivesystem of risk management as well as the preparation of the supplementary schedules included inthese financial statements.The directors have made an assessment of the company’s ability to continue as a going concern andhave no reason to believe the business will not be a going concern in the year ahead.The auditor is responsible for reporting on whether the annual financial statements are fairlypresented in accordance with the applicable financial reporting framework.17 18Independent Auditor’s ReportTo the Members of The Principal Officers Association of South Africa (Association Incorporatedunder Section 21 of the Companies Act)We have audited the annual financial statements of The Principal Officers Association of SouthAfrica (Association Incorporated under Section 21 of the Companies Act), which comprisethe statement of financial position at 28 February 2010, and the statements of comprehensiveincome, changes in equity and the cash flows for the year then ended, and the notes to thefinancial statements, which include a summary of significant accounting policies and otherexplanatory notes, and the directors’ report, as set out on pages 5 to 19.Directors’ responsibility for the financial statementsThe company’s directors are responsible for the preparation and fair presentation of thesefinancial statements, in accordance with South African Statements of Generally AcceptedAccounting Practice and in the manner required by the Companies Act of South Africa. Thisresponsibility includes: designing, implementing and maintaining internal control relevantto the preparation and fair presentation of financial statements that are free from materialmisstatement, whether due to fraud or error; selecting and applying appropriate accountingpolicies, and making accounting estimates that are reasonable in the circumstances.Auditor’s responsibilityOur responsibility is to express an opinion on these financial statements based on our audit. Weconducted our audit in accordance with International Standards on Auditing. Those standardsrequire that we comply with ethical requirements and plan and perform the audit to obtainreasonable assurance whether the financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures 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 internalcontrol relevant to the entity’s preparation and fair presentation of the financial statementsin order to design audit procedures that are appropriate in the circumstances, but not for thepurpose of expressing an opinion on the effectiveness of the entity’s internal control. An auditalso includes evaluating the appropriateness of accounting policies used and the reasonablenessof accounting estimates made by management, as well as evaluating the overall presentation ofthe financial statements.Approval of the annual financial statements.The annual financial statements of The Principal Officers Association of South Africa as identifiedin the first paragraph, were approved by the board of directors on ………………………….. andsigned on behalf of the board by:DirectorDirectorWe believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.OpinionIn our opinion, the financial statements present fairly, in all material respects, the financialposition of The Principal Officers Association of South Africa (Association Incorporated underSection 21 of the Companies Act) at 28 February 2010, and its financial performance and cashflows for the year ended in accordance with the South African Statements of Generally AcceptedAccounting Practice, and in a manner as required by the Companies Act of South Africa.Your Profession - Your IntegrityYour Profession - Your Integrity

Other mattersSupplementary information set out on pages 20 to 21 does not form part of the annual financialstatements and is presented as additional information. We have not audited this information andaccordingly we do not express an opinion on it.19 20KPMG IncPer M FouchéRegistered AuditorChartered Accountant (SA)Director17 January 2011Your Profession - Your IntegrityYour Profession - Your Integrity