midrand high school welcomes you to the special general meeting
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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
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