2015 REPORT FINAL1

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FINANCIAL CHRIST IS THE STATEMENTS ANSWER MINISTRIES FOR THE (CITAM) YEAR ENDED 31ST DECEMBER 2015
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2015 (CONT'D)
8 Prepaid operating lease rentals
2015 2014
Cost Kshs Kshs
As at 1st January
As at 1st January 439,783,178 425,774,335
Additions 11,602,513 14,008,843
As at 31st December 451,385,691 439,783,178
Amortization
As at 1st January 34,004,803 29,465,950
Charge for the year 4,656,066 4,538,854
As at 31st December 38,660,869 34,004,803
Net book value
As at 31st December 412,724,822 405,778,375
Lease hold land is disclosed as prepaid operating lease rentals and carried at cost less
amortisation over the lease period.
9 Related party balances
9.1 Ark Properties and Investments Limited
The ministry incorporated the above named company to deal with its investments matters.
As at 1st January 371,441,364 387,525,830
Increase/(Decrease) During the year 4,463,959 (16,084,466)
As at 31st December 375,905,323 371,441,364
The above report relates to balance of loans CITAM borrowed on behalf of Ark Properties
and Investments Limited. CITAM owns 99.7% directly and 0.3% indirectly (through
CITAM trustees) of Ark Properties and Investments Limited shareholding. According to a
valuation carried out by Adomag Valuers & Associates on the 8th July 2013, the Juja land
was valued at Kshs 920, 200,000 (gross income of Kshs 4,400,000 and a net income of
Kshs 4,300,000 per acre for a total of 214 acres).
9.2 Long-term investments (Pan Africa Christian University)
As at 1st January 82,143,176 39,054,987
Additions During the year 34,254,079 43,088,189
As at 31st December 116,397,255 82,143,176
CITAM owns 60% shareholding in Pan Africa Christian University(PACU) and the above
amounts are the funds invested by CITAM as at 31st December.
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CITAM Annual Report and Financial Statements | 2015