Annual Report 2007/2008 - Umalusi

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Statement of Changes in Net Assetsfor the year ended 31 March 2008Accumulated SurplusRBalance at 01 April 2006 23 978 987Changes in net assetsSurplus for the year 4 947 819Total changes 4 947 819Balance at 01 April 2007 28 926 806Changes in net assetsSurplus for the year 5 126 209Total changes 5 126 209Balance at 31 March 2008 34 053 015Cash Flow Statementfor the year ended 31 March 2008Notes2008R2007RCash flows from operating activitiesCash receipts from customers 33 795 386 29 072 632Cash paid to suppliers and employees (29 112 182) (27 103 122)Cash generated from operations 10 4 683 204 1 969 510Interest income 1 586 972 1 727 250Net cash from operating activities 6 270 176 3 696 760Cash flows from investing activitiesPurchase of property and equipment 2 (12 930 398) (555 027)Sale of property and equipment 5 365 -Purchase of other intangible assets 3 (343) -Net cash from investing activities (12 925 376) (555 027)Total cash movement for the year (6 655 200) 3 141 733Cash at the beginning of the year 20 657 687 17 515 954Total cash at end of the year 5 14 002 487 20 657 68735 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8
Accounting Policies1. Presentation of Annual Financial StatementsThe annual financial statements have been prepared in accordance with South African Statements ofGenerally Accepted Accounting Practice (GAAP) including any of such statements issued by the AccountingStandards Board, with the effective Standards of Generally Recognised Accounting Practices (GRAP) issued bythe Accounting Standards Board replacing the equivalent GAAP statements as follows:Standards of GRAPGRAP 1: Presentation of fi nancial statementsGRAP 2: Cash fl ow statementsGRAP 3: Accounting policies, changes inaccounting estimates and errorsReplaced Statement of GAAPAC101: Presentation of fi nancial statementsAC118: Cash fl ow statementsAC103: Accounting policies, changes inaccounting estimates and errorsCurrently the recognition and measurement principles in the above GRAP and GAAP statements do not differsusbtantially or result in material differences in items presented and disclosed in the financial statements. Theimplementation of GRAP 1, 2 & 3 has resulted in the following changes in the presentation of the financialstatements:a) Terminology differences:Standards of GRAPStatement of fi nancial performanceStatement of fi nancial positionStatement of changes in net assetsNet assetsSurplus/defi citAccumulated surplus/defi citReplaced Statement of GAAPIncome statementBalance sheetStatement of changes in equityEquityProfi t/lossRetained earnings/accumlated lossb) The cash flow statement can only be prepared in accordance with the direct method.c) There are no restrictions on cash balances.Paragraph 11 to 15 of GRAP 1 has not been implemented because the budget reporting standard is in theprocess of development by international and local standard setters. Although the inclusion of budget informationwould enhance the usefulness of the financial statements, non-disclosure will not affect the objective ofthe financial statements.The financial statements are prepared on the going concern basis and are prepared under the historical costconvention and incorporate the principal accounting policies set out below.These accounting policies are consistent with the previous year.1.1 Property and equipmentThe cost of an item of property and equipment is recognised as an asset when:it is probable that future economic benefits associated with the item will flow to the Council; andthe cost of the item can be measured reliably.Costs include costs incurred initially to acquire or construct an item of property and equipment, and costsincurred subsequently, to add to, replace part of, or service it. If a replacement cost is recognised in the carryingamount of an item of property and equipment, the carrying amount of the replaced part is derecognised.3 6 U M A L U S I A N N U A L R E P O R T 2 0 0 7 / 0 8
Page 1 and 2: ANNUAL REPORT 2007/08
Page 3 and 4: 2QUALITY
Page 6: Report of the Chief Executive Offic
Page 9 and 10: INTEGRITYI T 8 U M A L U S I A N N
Page 11 and 12: Corporate Governance Report (contin
Page 13 and 14: Report on Operations“Umalusi stri
Page 15 and 16: Report on Operations (continued)PRO
Page 19 and 20: Report on Operations (continued)Out
Page 21 and 22: Report on Operations (continued)Out
Page 27 and 28: Report on Operations (continued)Fin
Page 31 and 32: Annual Financial Statementsfor the
Page 33 and 34: Report of the Councilfor the year e
Page 35: Statement of Financial Positionas a
Page 39 and 40: Accounting Policies (continued)obje
Page 41 and 42: Notes to the Annual Financial State
Page 47 and 48: Detailed Statement of Financial Per
Page 49 and 50: Human Resources Management and Deve
Page 61 and 62: Staff 2007 / 2008 (on 31 March 2008

Annual Report 2007/2008 - Umalusi

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