annual report · 2018-05-14 · notice of the annual general meeting 5 icsaz – 2017 annual report...

ANNUAL REPORT

Founded 1891

Institute of Chartered Secretaries and Administrators in Zimbabwe

2017

i ICSAZ – 2017 Annual Report

CONTENTS PAGE

General Information 1

The Council and Secretariat 2

Notice of Annual General Meeting 5

The Vision and Mission Statement 6

President’s Statement 7

Report of the Council 10

Councillors’ Responsibility for Financial Reporting 27

Report of the Independent Auditors 28

Consolidated Statement of Comprehensive Income 34

Consolidated Statement of Financial Position 35

Consolidated Statement of Changes in Equity 36

Consolidated Statement of Cash Flows 37

Statement of Accounting Policies 38

Notes to the Consolidated Financial Statements 52

GENERAL INFORMATION

1 ICSAZ – 2017 Annual Report

INSTITUTE OF CHARTERED SECRETARIES AND ADMINISTRATORS IN ZIMBABWE

The Institute was established by the Chartered Secretaries (Private) Act (Chapter 27:03) in 1971.

NATURE OF BUSINESS:

The main objective of the Institute of Chartered Secretaries and Administrators in Zimbabwe is the promotion and

advancement of the efficient administration of commerce, industry and public affairs by the continued development of the

study and practice of secretaryship and administration of companies and other bodies.

REGISTERED OFFICE:

Dzidzo House, 22-32 McChlery Avenue, Eastlea, Harare

AUDITORS:

AMG Global Chartered Accountants,

No 3 Elcombe Avenue, Belgravia, Harare.

BANKERS:

CBZ Bank Limited

Selous Avenue Branch, Harare

Standard Chartered Bank

Avondale Branch, Harare

LEGAL ADVISORS:

Dube, Manikai and Hwacha Legal Practitioners

6th Floor, Goldbridge, Eastgate, Harare

GENERAL INFORMATION


THE COUNCIL

Paradza Paradza, (Dr) FCIS (President)

Letitia Gaga (Mrs), FCIS (Vice President)

Taona Munzvandi, FCIS (Vice President)

George Mahembe, FCIS (Immediate Past President – 2016 – 2017)

Lovemore Kadenge, FCIS

Ferida Matambo (Mrs), FCIS

Charles Nhemachena, FCIS

Loice Kunyongana (Ms), FCIS

Sithembile Ncube (Mrs), FCIS

Siphiti M Nkomo (Dr), FCIS

Anele Maphosa, ACIS Harare Branch Chairman

Lifneth Moyo (Ms), FCIS Bulawayo Branch Chairman

Joseph Bemani (Dr), FCIS Masvingo Branch Chairman

Sibambangamandla Ncube, ACIS Midlands Branch Chairman

Shepherd Chinaka, ACIS Mutare Branch Chairman

INTERNATIONAL REPRESENTATIVES

Loice Kunyongana (Ms), FCIS, Institute of Chartered Secretaries and Administrators (ICSA)

George Mahembe, FCIS Corporate Secretaries International Association (CSIA)

THE SECRETARIAT

Chief Executive and Secretary

Joshua Farai Musamba (Dr), FCIS

Manager – Members & Students Services

Tsungirai Tracy Mushonga (Ms)

Finance and Administration Manager

Theresa Mazvabo (Mrs), ACIS

ICT and Marketing Manager

Remember W Mubaiwa

Technical Manager

Nelson Maseko, ACIS

GENERAL INFORMATION


ICSAZ COUNCIL 2017/2018

BRANCH CHAIRMEN

DR PARADZA PARADZA, FCIS

President

MR TAONA MUNZVANDI, FCIS

Vice President

MRS LETITIA GAGA, FCIS

Vice President

MR LOVEMORE KADENGE, FCIS

Councillor

Past President 2015/2017

MS LOICE KUNYONGANA, FCIS

Councillor

MR GEORGE MAHEMBE, FCIS

Councillor

Immediate Past President 2016/2017

MRS FERIDA MATAMBO, FCIS

Councillor

MRS SITHEMBILE NCUBE, FCIS

Councillor

MR CHARLES R NHEMACHENA, FCIS

Councillor

DR SIPHITI MAILER NKOMO, FCIS

Councillor

MS LIFNETH MOYO, FCIS

Bulawayo Branch

MR ANELE MAPHOSA, ACIS

Harare Branch

DR JOSEPH BEMANI, FCIS

Masvingo Branch

MR SHEPHERD D CHINAKA, ACIS

Mutare Branch

MR SIBAMBANGAMANDLA NCUBE, ACIS

Midlands Branch

GENERAL INFORMATION


*Left the Institute at the end of 2017.

THE SECRETARIAT

DR JOSHUA FARAI MUSAMBA, FCIS


MS TRACY T MUSHONGA

Manager: Members and Students Services

MRS THERESA MAZVABO, ACIS

Finance and Administration Manager

MR REMEMBER W MUBAIWA

ICT and Marketing Manager

*MR NELSON MASEKO, ACIS

Technical Manager

NOTICE OF THE ANNUAL GENERAL MEETING


27 April 2018

NOTICE IS HEREBY GIVEN that the 46th Annual General Meeting of the Institute of Chartered Secretaries and

Administrators in Zimbabwe will be held on Wednesday 23 May 2018, at Dzidzo House, Eastlea, Harare at 18:00 hours for

the following business:-

1. To receive the Report of the Council for 2017.

2. To receive the Audited Accounts and the Auditors’ Report for the year ended 31 December 2017.

3. To confirm the Auditors remuneration for 2017.

4. To appoint the Auditors for 2018.

5. To declare the results of the election of members to Council.

By order of the Council.

DR JOSHUA FARAI MUSAMBA (FCIS)


Note:

In terms of the Institute’s By-laws 2015;

(a) Any member entitled to attend and vote at the meeting is entitled to appoint a proxy to attend and vote on a poll.

No person shall be appointed as a proxy unless he/she is a member of the Institute and qualifies to vote. All proxy

forms must be received by the Secretary not less than 48 hours before the meeting.

(b) Graduates may attend the Annual General Meeting of the Institute and may partake in the proceedings but shall

have no voting rights.

(c) Any member who owes money to the Institute, including subscriptions for the current year, is not entitled to attend

and vote at a General Meeting (either for themselves or for anyone else) in anyway, or to be counted in a quorum.

THE VISION AND MISSION STATEMENT


Vision

“To be the professional body of choice in the development of leading practitioners in corporate management”.

Our Mission is:

“To sustainably promote and advance the efficient administration of commerce, industry and the public sector using modern

technology. We will achieve this through the study and practice of secretaryship, corporate governance, accountancy and

management, guided by world class standards”.

Core values

The Institute’s core values are:

1. Collective Wisdom

The Institute will harness the wisdom from Council, Members, Students and its Staff for the betterment of the Institute,

community and the nation at large.

2. Integrity

Council, Members, Students and Staff of the Institute must live an honest, model and responsible life for all to aspire to.

3. Transparency

The Institute is committed to openness, scrutiny and accountability in all that it does.

4. Teamwork at all times

The Institute will achieve its Vision and Mission by building and creating strong teams in all its areas of endeavour.

5. Innovativeness at all times

An organization that does not value and inculcate innovativeness will eventually fall behind others. We therefore strive to

bring innovative products and services for the benefit of our members, students, staff and the community at large.

These core values capture what we are about and what we would like to be known for and how we want to behave.

PRESIDENT’S STATEMENT - 2017


I am privileged to be reporting to you as your president for the year 2017.

Economic environment Overview

Zimbabwe’s economy continued to be very weak and fragile. The country recorded an economic growth of above 3% while the

inflation rate closed the year at 3, 46%.

Companies have continued to face difficulties operating in such an environment. Foreign Direct Investments remained very low

and many companies failed to retool. As a result, some companies closed shop thus throwing thousands of people onto the job

hunting market.

Competitive forces have also been harsh on some local companies and organisations as local goods and services faced stiff

competition from cheap imports.

The year under review was characterised by multiple pricing models as different payment methods attracted different cost

structures for the same goods and services. As a result, goods and services rose beyond the reach of many. The economy

suffered severe liquidity and foreign currency shortage induced challenges.

The Institute has not escaped the vagaries of this harsh economic environment as it battled rising costs and dwindling revenue

inflows.

Social

Corruption has continued to be a major impediment to business activity in the country and has spread across all sectors and

levels. As a result society has suffered greatly as some people have continued to engage in corruption with impunity. In many

organisations, corrupt activities have seen employees going for months without pay.

However, the coming in of the new President in November 2017, has brought in a breath of fresh air as he has talked a lot about

the need to fight corruption. The nation looks forward to tangible ways of combating corruption.

Communication

Technological revolution is changing the way people communicate. There is need to highlight that the Institute has continued to

face challenges in communicating with members and students due to outdated personal contact details. Today’s communication

is predicated on technology. It is thus essential that the Institute and members’ communication channels are kept open and

accessible. In this regard, the Institute has made several efforts to request members and students to ensure that their email

addresses and cell phone numbers are current. The Institute has put at your disposal a number of communication platforms like

Facebook, Twitter and our Website.

In the same breath the Institute has also improved the payment facilities by adding a mobile payment platform. Members now

have several payment modes at their disposal.



Performance

The Institute’s financial performance for the year 2017 was affected by the challenging economic environment characterised by

reduced income levels and increasing costs. The harsh economic conditions resulted in some members defaulting in paying

their subscriptions while students were not able to write the full complement of examinations as per their desires and in some

cases failing to renew their studentship. As a result, the Institute ended the year with a $137 921 deficit. This is a narrowing of

the deficit from the prior year. The Institute is working hard to eliminate this deficit. I am pleased to report that despite the

adverse conditions, the Institute still managed to run all the various activities as planned. These included the Annual

Conference and the Excellence in Corporate Governance Awards which were very well subscribed. Our awards have become a

source of pride for the recipients as they are noted in these companies’ annual reports.

Dzidzo House (Private) Limited

During the second half of the year the Institute began the process of improving the outlook of the Dzidzo House premises. In

this regard, the Institute started to put up a palisade fence on a section of the property. This project will be completed in phases

in line with availability of resources.

The Institute continues to service the mortgage loan acquired to purchase the 50% shareholding that was previously owned by

its former partner.

Strategic Plan

The Institute was meant to have reviewed its strategic plan in November 2017. Unfortunately, due to circumstances beyond its

control the planned workshop had to be postponed to January 2018. I am pleased to report that the January 2018 review of the

Strategic Plan has now taken place and a three year Strategic Plan for 2018-2020 has since been produced. The plan takes into

account the uncertain conditions in the country.

International Qualifying Scheme Review

The Institute, internationally, concluded work on the new International Qualifying Scheme (IQS). The Institute in Zimbabwe

intends to implement the new IQS in 2019. ICSAZ is also involved in a Pilot project to capacitate Public Sector Accounting in

Zimbabwe. This project is being facilitated by the International Federation of Accountants (IFAC) and the Public Accountants

and Auditors Board (PAAB). Work on this project will continue in the year 2018. It is the Institute’s hope that this project will

be able to admit students under the Institute’s normal route in 2019.

The Future

Zimbabwe is currently in transitional phase, moving from global isolation towards an open economy. A number of initiatives

are being championed by the new leadership. Among some of the positive initiatives is the selling of Zimbabwe as open for



business. A lot of energy is being directed towards improving the ease of doing business in the country. The Indigenisation Act

has since been repealed. We are likely to see meaningful changes after the harmonised elections. The expected economic

turnaround will see our students and members having access to job and business opportunities thus allowing them to participate

in Institute activities.

Meanwhile the Institute continues to work on other initiatives and products designed to strengthen the ICSAZ brand. The

Institute will capitalise on the interest in the Diploma in Forensic Accounting (DIFA) as it enrolled its first intake this year. The

capacitation of Public Sector Accounting will also provide opportunities for our members and students.

This gives me confidence that the Institute will soon be on a growth trajectory as it has laid the groundwork for it to take off.

Acknowledgement

I wish to place on record my gratitude to the members, students, councillors, committee members and the Secretariat for the

unwavering support during the course of the year. It was another difficult year but your hard working and professional contact

has maintained the ICSAZ brand.

DR PARADZA PARADZA (FCIS)

President

REPORT OF THE COUNCIL


1. THE 2017 COUNCIL

1.1 Council Members

The following served on the Council for 2017

Meetings Attended

Elected Members

Paradza Paradza (Dr), FCIS

Letitia Gaga (Mrs), FCIS

(President)

(Vice President)

4/4

3/4

Taona Munzvandi, FCIS (Vice President) 4/4

George Mahembe, FCIS

*Richard Anderson Summers, FCIS

(Immediate Past President)

(Past President)

4/4

1/4

Lovemore Kadenge, FCIS

Ferida Matambo (Mrs), FCIS

(Past President) 3/4

4/4

Charles Nhemachena, FCIS 2/4

Loice Kunyongana (Ms), FCIS 4/4

Sithembile Ncube (Mrs), FCIS 4/4

Siphiti Mailer Nkomo (Dr), FCIS 3/4

*Richard Anderson Summers retired from the Council after the 2017 Annual General Meeting.

Branch Chairmen

Anele Maphosa, ACIS Harare 4/4

Lifneth Moyo (Mrs), FCIS Bulawayo 4/4

Joseph Bemani (Dr), FCIS Masvingo 4/4

*Sibambangamandla Ncube ACIS Midlands 3/3

Shepherd Chinaka, ACIS Mutare 4/4

*Sibambangamandla Ncube was elected Midlands Branch Chairman in April 2017, after the first Council

Meeting of the year had been held.



1.2 Rotation and Re-election

Composition of Council

In line with the Chartered Secretaries (Private) By-laws 2015; the Council consists of nine elected members plus two

Past Presidents.

In terms of the By-laws, Taona Munzvandi will retire by rotation. Being eligible,

Taona Munzvandi offers himself for re-election.

L Kadenge, who has been on Council in terms of By-Law 46 (2), retires from Council.

The 2018/2019 Council, before the elections, stands as follows:-

Paradza Paradza (Dr) (President)

George Mahembe (Mr) (Immediate Past President)

Letitia Gaga (Mrs)

Ferida Matambo (Mrs)

Loice Kunyongana (Ms)

Sithembile Ncube (Mrs)

Charles Nhemachena (Mr)

Siphiti Mailer Nkomo (Dr)

Three (3) vacancies will be filled through the 2018 / 2019 Council elections.

2.0 CORPORATE GOVERNANCE

The Institute in Zimbabwe is a Division of ICSA (International), which has its headquarters in London, United

Kingdom. Locally, the Institute exists by an Act of Parliament, the Chartered Secretaries (Private) Act

(Chapter 27.03). The Institute subscribes to standards of best practice as they are practiced in a professional Institute.

The Division’s Council recognizes its responsibilities to advance and protect the ideals of the profession together

with the interests of all stakeholders in a sustainable manner.

In order to achieve these objectives, the Council has established a framework of committees to which it has delegated

responsibility for translating the Council’s policies and strategies into actions to meet the stakeholders’ expectations.

The following committees and their composition were in place during the period under review:



2.1 Executive, Finance and General Purpose Committee Meetings Attended

Paradza Paradza (Dr)

George Mahembe

Ferida Matambo

Taona Munzvandi

Letitia Gaga (Mrs)

FCIS (President)

FCIS

FCIS

FCIS

FCIS

9/10

9/10

7/10

10/10

9/10

2.2 Education Committee

*George Mahembe FCIS (Chairman) 1/1

Richard Summers

Pascal Jerry Mudzikisi

FCIS

FCIS

2/3

3/3

**Loice Kunyongana (Ms) FCIS 2/2

Ruth Runyararo Kaseke (Ms) FCIS 2/3

**Lovemore Pazvakavambwa FCIS 1/2

Obson Matunja (Dr) FCIS 1/3

Tyanai Danha FCIS 3/3

**Paradza Paradza (Dr)

*Rugare Mashonganyika

FCIS

ACIS

2/2

0/1

2.3 Legislation and Technical Committee

Ferida Matambo (Mrs) FCIS (Chairman) 2/3

Peter Madara

Davidson Chirombo (Advocate)

Florid Mashonga (Mrs)

Simbarashe Admore Davira Dziva

FCIS

FCIS

FCIS

FCIS

3/3

2/3

3/3

2/3

**Letitia Gaga (Mrs) FCIS 0/2

Charles Nhemachena

Lovemore Kadenge

FCIS

FCIS

2/3

3/3



2.4 Membership & Professional Competency Committee Meetings Attended

Letitia Gaga (Mrs) FCIS (Chairman) 3/4

**Constantine Mureyi Alois Mutiwanyuka FCIS 0/2

Anne Denise Colls (Mrs) FCIS 3/4

Loice Kunyongana (Ms) FCIS 3/4

Adam Puzo

**Wonder Chenjerai

FCIS

ACIS

4/4

1/2

Sithembile Ndlovu (Miss)

Gumbusai Mhetu

**Taurai Mataka

Ephania Muzvidzwa (Mrs)

*Siphiti M Nkomo (Dr)

ACIS

ACIS

ACIS

ACIS

FCIS

4/4

4/4

1/2

4/4

2/2

2.5 Marketing and Strategy Committee

Taona Munzvandi FCIS (Chairman) 3/4

Peter Kadzere

Taurai Mataka

**Ferida Matambo (Mrs)

FCIS

ACIS

FCIS

4/4

4/4

0/2

Gumbusai Mhetu ACIS 3/4

**Elizabeth Dungeni (Mrs)

Esther Muchenje-Mandizvidza (Mrs)

*Priscilla Dube (Mrs)

ACIS

ACIS

ACIS

0/3

4/4

1/1

2.6 IBAS Council

*Taona Munzvandi

Charles Nhemachena

Patrick Paradza

Joshua Farai Musamba (Dr)

Richard Masinire

Wonder Chenjerai

Felix Potsekayi

**Paradza Paradza (Dr)

*Sithembile Ncube (Mrs)

FCIS (Chairman)

FCIS

ACIS

FCIS

ACIS

FCIS

ACIS

FCIS

FCIS

1/2

3/4

3/4

4/4

2/4

3/4

4/4

2/2

2/2



2.7

2.8

Nominations Committee

*George Mahembe

Lovemore Kadenge

Richard Anderson Summers

Pious Manamike

**Pascal Jerry Mudzikisi

Investigations Committee

John Chikura

Viola Makanyara Chasi (Mrs)

*Richard Anderson Summers

Anne Denise Colls (Mrs)

Glovah Ngoni Madzima

***Tagarira Mutenga (Dr)

John Chikura and Viola Makanyara Chasi were recused from the

meetings held during the year that was under discussion.

FCIS (Immediate Past President) Chairman

FCIS (Past President)




FCIS (Chairman)

LLB/.Grad.ICSA

FCIS

FCIS

FCIS

FCIS

Meetings Attended

-

1/1

1/1

1/1

1/1

1/4

0/4

-

4/4

4/4

3/3

2.9 ****Disciplinary Tribunal

Peter Madara FCIS (Chairman) -

Sibongile Mhlanga (Ms) ACIS -

Eric Harid FCIS -

William Kenneth Lunt LLB -

Michael Nyamazana

There was no case brought to the Disciplinary Tribunal, hence

there was no meeting in the period under review.

FCIS -

2.10 ****Appeals Tribunal

Cleopas Makoni FCIS (Chairman) -

Vunganai Wilson Javangwe FCIS -

Grace Slava Chella (Mrs) FCIS -

Victor Nkomo LLB -

Tyanai Danha FCIS -

There was no case brought to the Appeals Tribunal, hence there was no meeting in the period under review.



* George Mahembe joined the Education Committee after the last Annual General Meeting.

* Rugare Mashonganyika joined the Education Committee after the last Annual General Meeting.

** Paradza Paradza (Dr) left the Education Committee after the last Annual General Meeting.

** Loice Kunyongana (Ms) left the Education Committee after the last Annual General Meeting.

** Lovemore Pazvakavambwa left the Education Committee after the last Annual General Meeting.

** Letitia Gaga left the Legislation/Technical Committee after the last Annual General Meeting.

* Siphiti Mailer Nkomo joined the Membership & Professional Competency Committee after the last

General Meeting.

** Constantine Mureyi Alois Mutiwanyuka left the Membership & Professional Competency Committee after

the last Annual General Meeting.

** Wonder Chenjerai left the Membership & Professional Competency Committee after the last Annual

General Meeting.

** Taurai Mataka left the Membership & Professional Competency Committee after the last Annual

General Meeting.

* Priscilla Dumbura-Dube (Mrs) joined the Marketing & Strategy Committee after the last Annual General

Meeting.

** Ferida Matambo (Mrs) left the Marketing & Strategy Committee after the last Annual General Meeting.

** Elizabeth Dungeni (Mrs) left the Marketing & Strategy Committee after the last Annual General Meeting.

* Taona Munzvandi joined the IBAS Council after the last Annual General Meeting.

* Sithembile Ncube (Mrs) joined the IBAS Council after the last Annual General Meeting.

** Paradza Paradza (Dr) left the IBAS Council after the last Annual General Meeting.

* George Mahembe joined the Nominations Committee after the last Annual General Meeting.

** Pascal Mudzikisi left the Nominations Committee after the last Annual General Meeting.

*** Tagarira Mutenga (Dr) was co-opted to the Investigations Committee after the last Annual General Meeting

* Richard Anderson Summers joined the Investigations Committee after the Annual General Meeting

**** There was one matter brought to the Disciplinary Tribunal and the Appeals Tribunal. As the matter under

the Investigations Committee had not been concluded by the end of 2017, the Investigations Committee,

the Disciplinary Tribunal and the Appeals Tribunal could not hold a Combined meeting in 2017 to consider

general issues to do with the discipline of members.



3.0 MEMBERSHIP OF THE INSTITUTE

The year 2017 was characterized by challenges in the economic environment. Lack of liquidity was a major factor in

these challenges. As a result the Institute continued to suffer from the depressed economic activity. The depressed

economic activity affected the ability of members to meet their obligations.

In order to mitigate the challenges caused by the depressed economic activity the Institute has put in place various

measures to retain membership. These include regular communication with defaulting members on the need to be up

to date with their subscriptions. Affected Members and Graduates are being engaged resulting in payment plans

being agreed between the Institute and members. Delisting of members is being pursued as a last resort.

Membership figures of the Institute as at 31 December 2017 are shown below

Dec 2017 Dec 2016 Change % Change

Fellows 244 240 4 2

Associates 711 757 (46) (6)

Graduates 679 854 (175) (20)

Total 1634 1851 (217) (12)

Membership figures declined during the year by 12%. This was as a result of the delisting of defaulting Members

during the year. The number of those removed from the register was greater than the number of Graduates who

completed the examinations during the year. The Institute hopes to address this in the medium term as it is engaged

in initiatives to increase the completion rates of examinations. This, coupled with the collaborative programs should

result in an increase in Graduates of the Institute.

Movement in membership figures during the year

Elections/

Additions

during

the year

De-registrations

during the Year

Deaths

during the

year

Restored

To

register

Transfers

in

Transfers

Out

Adjustments

between

grades

Change

Fellows 12 7 - - - 1 - 4

Associates 78 108 3 - - 1 12 (46)

Graduates 126 225 - - 2 - 78 (175)



The Institute is actively encouraging Graduates to seek election to Associateship status and Associates to seek

election to Fellowship status. As a result of this effort it is expected that more people will be elected to become

Associates and Fellows.

4.0 MEMBERSHIP AND PROFESSIONAL SERVICES

4.1 Continuing Professional Development (CPD) of Members

Continuous Professional Development is a key component of a professional life. In recognition of the importance of

Continuous Professional Development, the Institute conducts CPD seminars in all the branches at least once a year.

The Institute conducted Continuing Professional Development Seminars across the country. These CPD seminars

were held in Harare, Bulawayo, Masvingo and Gweru. The Mutare CPD was cancelled due to reasons beyond the

Institute’s control. The CPD seminars are held in the branches to enable members to easily access this service in

their areas.

Members of the Institute are expected to input at least 20 Continuing Professional Development hours every year.

4.2 Relationship with Government and Regulatory Authorities

The Institute continues to nurture its relationship with the government, regulators and other national organisations.

Towards this end, the Institute submitted recommendations on budgetary issues to the Ministry of Finance and

Economic Development for both the mid-term fiscal policy review and the 2018 National budget. Its branches also

submitted contributions on the Local Authorities budgets.

The Institute continued to interact and make contributions to the Registrar of Companies’ office on the draft

Companies Bill, and with ZIMRA on issues affecting the nation and the profession.

The Institute also had regular interaction with the Zimbabwe Stock Exchange, the Reserve Bank of Zimbabwe and

the Securities and Exchange Commission of Zimbabwe on issues to do with regulations and professional practice.

4.3 Member Disciplinary Issues

One case was brought to the attention of the Institute. The matter was forwarded to the Institute’s Investigations

Committee. At the close of the year the matter was still being considered by the Investigations Committee.

4.4 Members’ Activities

4.4.1 Annual Conference

The 2017 Annual Conference was successfully held at the Elephant Hills Resort – Victoria Falls from 23 to 25

September 2017. The Conference, whose theme was “Chartered Secretary – Surviving in a Turbulent Environment”



was attended by two hundred and fifty-three (253) delegates. Mr David Venus, the ICSA International President was

the Keynote Speaker. He delivered a Keynote address on “The Secretary’s Progress”. He also updated members on

“Proposed Reforms of the Institute - Charter and Bye laws”. The International President’s speech was well received.

4.4.2 Annual Dinner

Every year the Institute’s President hosts an Annual Dinner. The 2017 Annual Dinner was held on 28 July 2017 in

Harare. The Guest of Honour was Dr Shingi Munyeza from Vinal Investments. The 116 members and guests who

attended the dinner found the speech beneficial.

4.4.3 Chartered Secretary of the Year Award

As an effort to encourage excellency in its members, the Institute runs the Chartered Secretary of the Year Award to

recognize a Chartered Secretary adjudged to have done well in the previous year.

Mr Pascal Mudzikisi FCIS, an entrepreneur in Masvingo, was the winner while Dr J Bemani, the Dean of Commerce

at the Great Zimbabwe University, was the runner up.

4.4.4 Corporate Governance Awards

The Institute’s 2017 Excellence in Corporate Governance Awards (ECGA) were successfully presented at an Awards

Gala dinner held at the Harare International Conference Centre in Harare. The Awards were in the following

categories; the ZSE listed companies, Banking institutions and State Owned Enterprises.

The fifth edition of the ECGA had Mr Denys Denya, the Executive Vice President of Afreximbank as the Guest

Speaker. Mr Denya spoke on “Promoting Good Corporate Governance For Sustainable Economic Development.”

The speeches were well received. A total of 266 guests attended the Excellence in Corporate Governance Awards

presentation dinner.

The following were the winners of the Fourth Edition of the ICSAZ Excellence in Corporate Governance Awards.

List of winning ZSE listed companies per Award Category

Banking Sector Awards

Best Banking Governance Practices

Disclosures

Best Banking Risk Management

Disclosures Best Banking Internal Audit

Disclosures Overall: Best Banking

Corporate Governance

Disclosures

Winner: CABS Winner: CABS Winner: MBCA Bank Winner: CABS

First runner-up: NMB Bank First runner-up: CBZ Bank First runner-up: FBC Bank First runner-up: FBC Bank

Second runner-up: FBC Bank Second runner-up: Barclays Bank Second runner-up: Agribank Second runner-up: NMB Bank

Merit Award: CBZ Bank, MBCA Bank Merit Award: FBC Bank, Stanbic Merit Award: CABS, Stanbic Bank



Listed Companies Awards

Best Shareholder Treatment

Disclosures

Best Stakeholder Practices

&

Sustainability Reporting

Best Board

Governance

Practices Disclosures

Overall: Best Corporate Governance

Disclosures

Winner: Bindura Nickel

Corporation Ltd

Winner: Innscor Africa Ltd Winner: NicozDiamond

Insurance Ltd

Winner: Innscor Africa Ltd

First runner-up:

NicozDiamond Insurance Ltd

First runner-up: Turnall

Holdings Ltd

First runner-up: Turnall

Holdings Ltd

First runner-up: NicozDiamond

Insurance Ltd

Second runner-up:

Innscor Africa Ltd

Second runner-up: FBC

Holdings Ltd

Second runner-up:

Barclays Bank

Zimbabwe Ltd

Second runner-up: Turnall Holdings

Ltd

Merit Award: CBZ Holdings, RioZim Ltd

Merit Award: Econet Wireless (Z) Ltd,

Padenga Holdings Ltd

Merit Award: Axia Corporation,

CBZ Holdings Ltd

State Enterprises & Parastatals Awards

Best Corporate Governance Practices Disclosures

Winner: Deposit Protection Corporation (DPC)

First runner-up: ZESA Holdings (Pvt) Ltd

Second runner-up: Zimbabwe Revenue Authority (ZIMRA)

Merit Award: ZimTrade, Industrial Development Corporation (Z)

Individual Awards

Gloria Zvaravanhu: Governance Professional 2017

(Company Secretary of NicozDiamond Insurance Company

Limited)

Awarded for the Most-improved Ranking on the Listed

Companies Category

Andrew D. Lorimer: Governance Professional 2017

(Group Company Secretary of Innscor Africa Limited)

Awarded for the Company that Consistently Won the ECG

Awards in the Past Five Editions including the current

Canaan F. Dube: Special Achievement Award 2017

Awarded for the Role he played as Chairman of the Project

Board that developed the National Code on Corporate

Governance Zimbabwe (ZimCode)

4.4.5 Annual Charity Golf Tournament

Every year, the Institute organizes a Charity Golf Tournament to afford members and their guests the opportunity to

network while at the same time raising funds for the less fortunate members of our society. In 2017 the Charity Golf

day was held at the Chapman Golf Club on 30 June 2017.

The event attracted 73 participants and raised a total of $2610. Funds raised at the event and also from a fund raising

raffle at the Annual Conference were donated to charity.



4.4.6 Reunion Party

Every year the Institute organises a Reunion Party for Fellows and members who have been in the profession for 10

years and more. The event is meant to provide an additional forum for senior members of the Institute to network

and exchange notes in a relaxed environment. The 2017 Reunion Party was held on 8 December 2017 at Dzidzo

House. Thirty members were able to take advantage of this networking opportunity to network.

4.4.7 Branch Activities

The Institute has five branches in the country. The branches are designed to serve members in the branches with the

assistance of branch Committees. The Institute organises seminars and other activities including outreach

programmes in the community.

4.4.8 Harare and Bulawayo Branches Activities

The Institute’s Harare and Bulawayo Branches (the Institute’s two main branches) organized several functions during

the year. These functions included luncheons, cocktails and a Budget Breakfast. Good attendances were recorded at

most of the Harare branch’s activities. Dates, topics and speakers for the functions were as follows:-

Date Topic Presenter

HARARE

02 March 2017 Marketing for Survival Mrs Juliet Ziswa

28 April 2017 Wealth Creation Opportunities – Making Money from Special

Alternative Investments

Mr Michael Mautsahuku

29 June 2017 Status of an Enquiry on the Dollarization Issue Mrs Josephine Mutepfa

30 June 2017 Estate Administration in Zimbabwe Master of High Court

Designate

31 August 2017 Cyber Crime – Don’t be a victim Dr Paradza Paradza

BULAWAYO

22 February 2017 The Great Zimbabwe Collaborative degrees Mrs Sithembile Ncube

In addition to the seminars and CPDs, the Bulawayo branch organized a Charity fundraising event where they raised

$500 for charity.



4.4.9 Public and Practicing Accountants

The Institute is a constituent member body of the Public Accountants and Auditors Board (PAAB). Benefits of this

membership are that members of the Institute are entitled to be registered and practice as Public Accountants. They

can also practice as Tax Accountants. Through this membership, our members are also kept in touch with

developments in the profession as per the regulator’s requirements.

A total of 367 members were registered as Public Accountants as at 31 December 2017. Members who are in Public

Practice are further encouraged to register with the Institute on the Institute’s Practicing members database.

4.4.10 Pan African Federation of Accountants (PAFA)

The Institute retained its membership of the Pan African Federation of Accountants (PAFA) in 2017. The Institute

participated in several PAFA activities which are designed to enrich the profession. Representatives of the Institute

attended the Pan African Federation of Accountants’ Annual General Meeting in May 2017 and participated at the

PAFA organized conference.

4.4.11 Corporate Social Responsibility

The ICSAZ 2017 Annual Charity Golf Day and 2017 Annual Conference were used to raise funds for charity. As a

result of these fund raising activities a total of $2 610 was raised. Goods valued $1 305 were donated to the Newstart

Children’s Home and $1 305 to the Jairos Jiri Association Southerton Children’s Centre. Both institutions are in

Harare. The Administrators and children at the Institutions were very grateful to receive the donations.

4.4.12 Corporate Secretaries International Association (CSIA)

The Institute’s membership of the Corporate Secretaries International Association (CSIA) was retained. The CSIA

has now changed its domicile from Switzerland to Hong Kong. The Corporate Secretaries Toolkit was rolled out in

2017 when a Train the Trainer course was conducted. Training for the practitioners will now start in 2018.

5.0 STUDENTS SERVICES

5.1 The limited resources in the economy affected student registrations and examinations. The students’ registration

figures had a slight increase during the year. This was due to extensive marketing and selling operations that were

put in place during the year. It is hoped that this and other initiatives will be able to assist in increasing student

numbers for the Institute going forward.

The Institute commenced a collaborative programme with the Great Zimbabwe University This program has been

well received. 64 students registered with the University as a result of the programme. The number is expected to

increase as the programme moves into its second year.



5.2 Diploma in Forensic Accounting (DFA)

The Institute launched a new Diploma in Forensic Accounting qualification in order to cater for the increasing

demand for qualified Forensic Accountants and Technicians. The first intake of the course comprised of 24 students.

These students commenced classes in July 2017 and wrote the first set of examinations in November 2017. Uptake

on the programme is expected to increase as the course gains momentum.

5.3 Winter School

Winter Schools are designed specifically to assist students in acquiring the soft skills needed for the work

environment. The Winter Schools are part and parcel of the ICSAZ curriculum. In terms of the Institute’s

studentship regulations, a student is expected to attend at least two Winter Schools before graduation.

In 2017, the Institute hosted two student Winter Schools. These Winter Schools were held in Bulawayo, at the

Holiday Inn Hotel, and in Harare at the Bronte Hotel. The Winter Schools were attended by thirty-two (32) delegates

in Bulawayo and fifty-four (54) delegates in Harare. The Theme for the Winter Schools was “The Chartered

Secretary – Surviving in a Volatile Economy”.

5.4 Examinations

Students performed reasonably well in the 2017 examinations. A total of 179 students completed their examinations

in 2017. This number is a 25% increase on the numbers that graduated in 2016. The Institute hopes that these

good performances will be repeated in future examination sittings. The Prize Winners for the year 2017 will receive

their prizes at the graduation ceremony on 10 June 2018.

As part of the initiatives to improve the pass rates, the student services department is regularly meeting college

representatives and holding seminars with college lecturers in a number of subjects. The Institute will also continue

to offer revision classes in selected subjects. Study material for some of the Professional Programme I and II subjects

will continue to be reviewed.

5.5 Supplementary Examinations

As a result of the impending change in the Institute’s Qualifying Scheme, the Institute will in 2018 introduce

supplementary examinations. The supplementary examinations will be held in February/March and in

August/September subject to sufficient demand. The number of students completing the examinations and be able to

graduate will, hopefully, increase due to the supplementary examinations.



5.6 Student Attachment

The Institute continued with its efforts to actively source for attachment facilities for its students. Members of the

Institute and employers were approached to assist in this regard. The Institute is very grateful for the assistance

offered to the Institute’s students by members and companies. The Institute continues to approach members and

companies so that they can participate in this worthwhile exercise.

6.0 INSTITUTE OF BUSINESS AND ACCOUNTING STUDIES (IBAS)

The IBAS student numbers have not shown the growth that was expected. This, like under ICSAZ, is probably a sign

of the difficult economic environment and the long curriculum. In order to address this challenge the Institute will be

reviewing the curriculum to see if it can be shortened.

Based on this initiative, improvements will be expected as from 2019. The IBAS Council will continue to monitor

the situation and assess what other measures can be taken to increase the uptake on this course.

7.0 PUBLICATIONS AND PUBLIC RELATIONS

Four issues of the Chartered Secretary Magazine were published in 2017. Two of the four issues were published as

hard copies while the other two were published as soft copies.

The Institute also published three issues of the Technical Newsletter. The aim of the newsletter is to keep members

and students abreast with changes in the profession. Issues tackled in the Technical Newsletter were:

First Issue

Demystifying International Public Sector Accounting Standards (IPSAS)

Second Issue

- Feedback on the Institute of Chartered Secretaries & Administrators in Zimbabwe (ICSAZ) and the Zimbabwe

Revenue Authority (ZIMRA) meeting.

- Financial Reporting – Preparers must prepare for three new major IFRSs

Third Issue

-Tax Accounting Practice / PAAB Registration Requirements Explained

-Local Regulatory Update - A New Companies Bill for Ease of Doing Business

Public Sector Corporate Governance Bill – To Shake, Shift and Shape SEPs

-Developments in Financial Reports – Global Highlights

In order to keep members of the public informed on the Institute’s activities and programmes, three newspaper

supplements were also run in the print media. The Newspaper supplements were on the following issues: - The

Winter Schools, Graduation and New Presidium, the Annual Conference and the Excellence in Corporate

Governance Awards.



8.0 STAFF

The Institute lost Jane Shoko, a long serving member in 2017. She passed away on 21 March 2017, may her soul rest

in peace. One staff member, Nelson Maseko - the Technical Manager, left the Institute at the end of 2017. The

Institute will be recruiting a replacement in 2018.

9.0 INTERNAL CONTROLS AND RISK MANAGEMENT

9.1 The Institute has an Internal Audit programme as part of its internal controls. Two internal audit assignments were

carried out by a new firm as part of a formal rotation process. Reports from these internal audit processes were

tabled at the Executive, Finance and General Purpose Committee meetings. No major shortcomings were identified

during the internal audits. Where shortcomings were identified corrective action was taken. As part of the risk

management and mitigation efforts the Institute continued to be a member of the Tip Off Anonymous. No adverse

reports were received on this platform during the year 2017.

9.2 Investments

Placing of resources in investment houses is a key aspect of the Institute’s Asset Management programme. To reduce

the risk of default by any investment house used, the Institute regularly reviews the investment houses’ liquidity

levels, asset strength and their reputation. It tries by all means possible to place investments in investment houses

that offer minimum risk to the Institute.

9.3 Reputational Risk

The Institute minimises reputational risk by ensuring that the Institute’s activities are carried out in accordance with

legal and regulatory requirements.

9.4 Operational Risk

The Institute regularly reviews its operational structures and updates them in line with the needs of the Institute and

any changed circumstances. A Disaster Recovery Plan, particularly for the Information and Communication

Technology System is in place for the Institute and was regularly tested during the year. The Institute also uses

segregation of duties in order to mitigate risk.

10.0 THE INTERNATIONAL COUNCIL

The ICSA International managed to get amendments to the Charter and bye laws approved by members at the Special

General Meeting in October 2017. The new changes will result in a new designation for the Institute. This new

designation is for a new qualification route called the Chartered Governance Professional. This is additional to the



Chartered Secretary route and designation. Examinations for the new Chartered Governance Professional will

commence in 2019 under the newly revised International Qualifying Scheme (IQS) to be rolled out in 2019.

Members of the Institute, Fellows and Associates will be grandfathered into the new Chartered Governance

Professional designation. Details of the grandfathering arrangements will be published to members in 2018.

Progress was made in reviewing the IQS. A template was agreed on and this will be launched in 2019. As part of the

new IQS the ICSA will be introducing the Affiliated member scheme whereby one will gain Affiliated membership

after passing at least half of the subjects in the new qualifying scheme. This is intended to cater for persons who wish

to gain knowledge in key areas of the IQS but do not wish to complete the full course. Such affiliated membership

will allow these members to participate in Institute activities like Conferences and Continuous Professional

Development courses. Affiliated members will however not have the right to vote (except on areas to do with

affiliated membership) and be elected to Council.

11.0 THE FUTURE

The Institute has been operating in a tight economic environment in the period under review. It has developed

strategies to weather the storm and should be able to remain as a going concern. During the last year, Zimbabwe’s

economy continued to suffer from the liquidity challenges and the poor macro-economic environment. These have

continued to have a negative impact on the Institute’s activities. The authorities have committed to restore

confidence in the Zimbabwean economy. If this is followed through by the expected implementation of investor

friendly policies the economy will improve, which in turn will cushion the Institute’s members and students.



12.0 ACKNOWLEDGEMENT

The Council received overwhelming support from its Committee members during the year. It thus wishes to place on

record its appreciation and gratitude to members of the various Committees and their Chairmen for their efforts on

carrying out the committees’ respective tasks during the year 2017.

The Council is also grateful to all members, graduates and students who in one way or another contributed to the

Institute during the year and hope that this support will continue during the year 2018.

Finally, the Council extends its appreciation to the Secretariat staff for their commitment and performance during the

year.




President

COUNCILLORS’ RESPONSIBILITY FOR FINANCIAL REPORTING


The Members of the Council are responsible for the preparation and fair presentation of these financial statements, in

accordance with the International Financial Reporting Standards (“IFRSs”), as set out in the statement of accounting

policies, and for such internal control as the Council members determine is necessary to enable the preparation and

presentation of the financial statements that are free from misstatement, whether due to fraud and/or error.

The Members of the Council are also responsible for the systems of internal controls. These are designed to provide

reasonable, but not absolute, assurance as to the reliability of the financial statements, and to safeguard, verify and maintain

accountability of assets and prevent and detect material misstatements and losses. The systems are implemented and

monitored by suitably trained personnel with an appropriate segregation of authority and duties. Nothing has come to the

attention of the Council Members of the Group to indicate that any material breakdown in the functioning of these controls,

procedures and systems has occurred during the year under review.

The financial statements comply with the International Financial Reporting Standards (IFRS). The Group’s independent

external auditors, AMG Global Chartered Accountants, are responsible for reporting on the fair presentation of the annual

financial statements and their report appears on page 28 to 33.

The financial statements are prepared on a going concern basis. Nothing has come to the attention of the Members of the

Council to indicate that the Group will not remain a going concern for the foreseeable future.

The financial statements set out on pages 34 to 60 were approved by the Council Members on 14 April 2018 and are signed

on its behalf by:




President

REPORT OF THE INDEPENDENT AUDITORS

TO THE MEMBERS OF THE INSTITUTE OF CHARTERED SECRETARIES AND ADMINISTRATORS IN

ZIMBABWE


Opinion

We have audited the financial statements of the Institute of Chartered Secretaries and Administrators in Zimbabwe Group

(“the Group”) set out on pages 34 to 60, which comprise:

The statement of financial position as at 31 December 2017;

The statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the

year ended 31 December 2017;

Notes to the financial statements; and

A summary of significant accounting policies applied by the Group during the year.

In our opinion, the financial statements are properly drawn up in conformity with International Financial Reporting

Standards (“IFRSs”) and, in all material respects, give a true and fair view of the financial position of the Institute as at 31

December 2017, and of its financial performance and its cashflows, for the year then ended.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (“ISAs”). Our responsibilities under those

standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our

report. We are independent of the Group in accordance with the ethical requirements of the Institute of Chartered

Accountants of Zimbabwe (“ICAZ”) Code of Professional Conduct, which is consistent with the International Ethics

Standards Board for Accountants’ Code of Ethics for Professional Accountants (“IESBA Code”), and have fulfilled our

other responsibilities under those ethical requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.



ZIMBABWE


Going concern

The Group’s financial statements have been prepared using the going concern basis of accounting. The use of this basis of

accounting is appropriate unless Council Members of the Group either intend to liquidate the Group or to cease operations,

or has no realistic alternative but to do so. As part of our audit of the financial statements, we have concluded that the

Council Members of the Group’s use of the going concern basis of accounting in the preparation of the Group’s financial

statements is appropriate.

The Council Members of the Group have not identified a material uncertainty that may cast significant doubt on the Group’s

ability to continue as a going concern, and accordingly none is disclosed in the financial statements.

Based on our audit of the financial statements, we also have not identified such a material uncertainty in the Group’s ability

to continue as a going concern.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial

statements for the current period. Key audit matters are selected from the matters communicated with the Council Members,

but are not intended to represent all matters that were discussed with them. Our audit procedures relating to these matters

were designed in the context of our audit of the financial statements as a whole and we do not provide a separate opinion on

these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

Key audit matter How our audit addressed the key audit matter

Revenue recognition and measurement

Revenue consists of the invoiced value of

fees/subscriptions charged to students and members by

the Group. The Group’s revenue is the most

quantitatively significant amount in the consolidated

financial statements.

Recognition of revenue was considered a key audit

We focused our attention on assessing the validity, accuracy

and completeness of revenue and our procedures included

the following, amongst others:

We obtained our understanding of the revenue

recognition process, performed walk-throughs of

the revenue classes of transactions, and evaluated



ZIMBABWE


matter due to the significance of the revenue amount and

the work effort required to be performed by the audit

team.

the operation of internal controls set in this area;

Recalculating the revenue using data analytical

methods; and

We evaluated the Council Members’ assumptions

in respect of cash flow estimates, focusing on the

timing and assessed whether the revenue

recognition policies adopted were in compliance

with IFRS. We evaluated whether the revenue

recognition model is working as intended.

From the audit work performed, we obtained satisfaction on

the recognition and measurement of the Group’s revenue.



ZIMBABWE


Property and equipment (PE) valuation and existence

PE is the most significant line item on the Group’s

statement of financial position. As at 31 December 2017

the carrying value of PE was US$1 024 662. The

determination of useful lives, residual values and

impairment losses are significant estimates in nature.

The materiality of PE resulted in us considering this to

be a key audit matter.

We performed the following audit procedures with regards

to the valuation and existence of Property and Equipment:

We reviewed the opening balances of assets and

verified whether they were accurately brought

forward from prior year;

We vouched significant additions to supporting

documents;

We reviewed and considered the appropriateness of

depreciation rates and residual values;

We independently recalculated the depreciation

charges during the year;

We physically verified the existence of assets on a

sample basis, by tracing them from the floor to the

registers and vice versa;

We also reviewed the legal ownership of motor

vehicles against the registration books;

We verified all disposals against supporting

documents and reviewed the PE registers to

confirm accuracy of derecognition;

We reviewed management’s assessment of

impairment as at 31 December 2017; and

We verified the disclosures relating to PE presented

per note 7 in the annual financial statements.

From the audit work performed, we obtained satisfaction on

the valuation and existence of property and equipment.



ZIMBABWE


Council Members’ responsibility for the financial statements

The Council Members of the Group are responsible for the preparation and fair presentation of these financial statements in

accordance with IFRSs, and for such internal control as the Council Members of the Group determine is necessary to enable

the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The Council

Members of the Group are responsible for overseeing the Group’s financial reporting process.

The consolidated financial statements were prepared under the supervision of the Finance and Administration Manager,

Theresa Mazvabo, who is a Registered Public Accountant, PAAB Registration Number 03850.

Auditor’s Responsibilities for the Audit of the Financial Statements

The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a whole are free

from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs

will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered

material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users

taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism

throughout the planning and performance of the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,

design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and

appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from

fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal control;

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are

appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the

entity’s internal control;



ZIMBABWE


Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and

related disclosures made by the Council Members of the Group; and

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and

whether the financial statements represent the underlying transactions and events in a manner that achieves fair

presentation.

We are required to communicate with the Council Members of the Group regarding, among other matters, the planned scope

and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we

identify during our audit.

We are also required to provide the Council Members of the Group with a statement that we have complied with relevant

ethical requirements regarding independence, and to communicate with them all relationships and other matters that may

reasonably be thought to bear on our independence, and where applicable, related safeguards.

The engagement partner responsible for the audit resulting in this independent auditor’s report is Tariro Mhuka (PAAB

Number 0423).

AMG Global

Harare

19 April 2018

FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER

2017


Note 2017 2016

$ $

Revenue 2 1 226 782 1 168 228

Other income 3 163 113 120 478

Administration expenses 4 (1 528 979) (1 479 239)

__________ _________

Operating deficit (139 084) (190 533)

Net financing (cost)/income 5 (15 039) 17 841

Fair value adjustment on investments - (2 705)

__________ _________

Deficit before taxation (154 123) (175 397)

Taxation 6 16 202 16 016

__________ _________

Deficit after taxation (137 921) (159 381)

__________ _________


CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2017


Note 2017 2016

$ $

ASSETS

Non-current assets

Property and equipment 7 1 024 662 1 039 800

Deferred tax 6.4 23 605 22 456

_________ _________

1 048 267 1 062 256

_________ _________

Current assets

Inventory 8 33 270 46 582

Accounts receivable 9 74 602 126 435

Short term investments 10 297 484 504 923

Cash and bank balances 52 654 9 778

_________ _________

458 010 687 718

_________ _________

_________ _________

Total assets 1 506 277 1 749 974

_________ _________

ACCUMULATED FUNDS AND LIABILITIES

Reserves per statement of changes

in equity 1 179 279 1 317 200

_________ _________

Long term liabilities

Loan payable - long term portion 11 77 613 200 008

Deferred tax - 15 053

_________ _________

77 613 215 061

_________ _________

Current liabilities

Accounts payables 12 160 886 129 214

Loan payable – current portion 11 88 499 88 499

_________ _________

249 385 217 713

_________ _________

_________ _________

Total accumulated funds and liabilities 1 506 277 1 749 974

_________ _________

…………………………………………….

CHIEF EXECUTIVE AND SECRETARY

14 April 2018

……………………………………………

PRESIDENT


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2017


Non-

distributable Accumulated

reserve fund Total

$ $ $

Balances as at 31 December 2015 349 228 1 127 353 1 476 581

Deficit for the year - (159 381) (159 381)

________ _________ ________

Balances as at 31 December 2016 349 228 967 972 1 317 200

Deficit for the year - (137 921) (137 921)

________ _________ ________

Balances as at 31 December 2017 349 228 830 051 1 179 279

________ _________ ________


CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE PERIOD ENDED 31 DECEMBER 2017


Note 2017 2016

$ $

NET CASH FLOWS FROM OPERATING

ACTIVITIES

Operating cash flows

Operating deficit (139 084) (190 533)

Depreciation on equipment 7 110 689 109 917

Profit on disposal of equipment (8 788) -

__________ __________

Net operating cash flows before

reinvestment in working capital (37 183) (80 616)

Decrease in inventory 13 312 1 363

Decrease/(increase) in accounts receivable 51 833 (44 066)

Increase/(decrease) in accounts payable 31 672 (40 835)

Net movement in related party balances - 6 947

__________ __________

Net cash flows from operations 59 634 (157 207)

__________ __________

Return on investments

Net financing (cost)/income 5 (15 039) 17 841

__________ __________

Taxation

Taxation paid - (2 365)

__________ __________

Net cash flows from operating activities 44 595 (141 731)

__________ __________

NET CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of equipment (96 713) -

Proceeds from disposal of equipment 9 950 -

Proceeds from disposal of long term investment - 16 880

Acquisition of additional shares in subsidiary - (694 411)

__________ __________

Net cashflows from investing activities (86 763) (677 531)

__________ __________

NET CASH FLOWS FROM FINANCING ACTIVITIES

Net movement in loans payable (122 395) 288 507

__________ __________

__________ __________

DECREASE IN CASH AND CASH EQUIVALENTS 13 (164 563) (530 755)

CASH AND CASH EQUIVALENTS AT THE

BEGINNING OF THE YEAR 514 701 1 045 456

__________ __________

CASH AND CASH EQUIVALENTS AT THE

END OF THE YEAR 350 138 514 701

__________ __________

STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 31 DECEMBER 2017


The principal accounting policies of the Group, which are set out below, are consistently applied in all material

respects.

BASIS OF PREPARATION

The financial statements are prepared in United States Dollars under the historical cost convention and no

procedures are adopted to reflect the impact on the financial statements, if any, of specific price changes and

changes in the general level of prices.

ADOPTION OF NEW AND REVISED STANDARDS

Standards issued but not yet effective as at the reporting date

The standards listed below were issued but not yet effective as at the date of issuance of the Group financial statements

but the Group reasonably expects them to be applicable at a future date and, as such, intends to adopt them when they

become effective.

The Group expects that the adoption of these standards in most cases will not have a significant impact on the Group’s

financial position and performance in the period of initial application but additional disclosures will be required. The

impact of these standards on the Group’s financial statements on adoption in future is not known and cannot be

reasonably estimated as of now.

IFRS 9 Financial Instruments

The standard was issued in July 2014 and is effective for annual periods beginning on or after 1 January 2018. IFRS 9

supersedes IAS 39. The objective of this standard is to establish principles for the recognition, derecognition,

classification and measurement of financial assets and financial liabilities together with requirements relating to the

impairment of financial assets and hedge accounting. Earlier application of this standard is permitted.



(continued)

IFRS 17 Insurance contracts

The standard was issued in May 2017. The objective of the standard is to provide a single accounting model that

measures insurance contracts and the relevant estimates involved in the contracts, so that stakeholders from anywhere in

the world can understand and compare the financial positions and performances of companies that issue insurance

contracts with companies in other industries.

IFRS 15 Revenue from Contracts with Customers

Originally issued in May 2014 and effective for annual periods beginning on or after 1 January 2018, IFRS 15 supersedes

IAS 11, IAS 18, IFRIC 13, IFRIC 15, IFRIC 18 and SIC 31. The objective of this standard is to establish when revenue

should be recognised, how it should be measured and what disclosures about contracts with customers are needed.

BASIS OF CONSOLIDATION

The consolidated financial statements comprise of the financial statements of the Group and its subsidiaries. Subsidiaries

are those entities controlled by the Group. Control exists when the Group has the power, directly or indirectly, to govern

the financial and operating policies of an entity so as to obtain benefits from its activities.

The financial statements of the subsidiaries are prepared for the same reporting period as the parent Group. Subsidiaries

are consolidated from the date on which the Group obtains control and continue to be consolidated until the date when

such control ceases. All intra-Group transactions, balances, unrealised gains and losses resulting from intra-Group

transactions and dividends are eliminated in full on consolidation.

STATEMENT OF COMPLIANCE

The financial statements have been prepared in conformity with International Financial Reporting Standards (IFRS),

promulgated by the International Accounting Standards Board (IASB), which IFRS include standards and

interpretations approved by the IASB, as well as International Accounting Standards and IFRS Interpretations

Committee (SIC) interpretations.



BUSINESS COMBINATIONS

Recognition

Acquisitions of subsidiaries and businesses are accounted for using the acquisition method.

Applying the acquisition method requires:

(i) Identifying the acquirer;

(ii) Determining the acquisition date;

(iii) Recognising and measuring the identifiable assets acquired, the liabilities assumed and any non-controlling

interest in the acquiree; and

(iv) Recognising and measuring goodwill or a gain from a bargain purchase. Acquisition costs incurred are

expensed.

Measurement at acquisition

The consideration transferred for the acquisition of a business is measured as the aggregate of the fair values (at the

date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in

exchange for control of the acquiree.

For each business combination, the acquirer measures the non-controlling interest in the acquiree either at fair value

or at the proportionate share of the acquiree’s identifiable net assets.

The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under

IFRS 3 (revised) are first assessed for appropriate classification and designation in accordance with the contractual

terms, economic circumstances and pertinent conditions as at the acquisition date and are recognised and measured

at their values at the acquisition date, except:

(i) Non-current assets (or disposal Groups) that are classified as held-for-sale which are recognised and

measured in accordance with IFRS 5 “Non-current Assets Held-for-Sale and Discontinued Operations”;

(ii) Liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-

based payment arrangements of the Group entered into to replace share-based payment arrangements of

the acquiree which are measured in accordance with IFRS 2 share-based payment transactions;



(continued)

(iii) Deferred tax assets or liabilities which are recognised and measured in accordance with IAS 12, Income

Taxes; and

(iv) Assets and liabilities related to employee benefits which are recognised and measured in accordance with

IAS 19 employee benefits.

If the business combination is achieved in stages, the acquisition-date fair value of the acquirer’s previously-held equity

interest in the acquiree is re-measured to fair value at the acquisition date through profit or loss.

When the consideration transferred by the Group in a business combination includes assets or liabilities

resulting from a contingent consideration arrangement, the contingent consideration is measured at its acquisition date

fair value and is included as part of the consideration transferred in the business combination.

Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability will be

recognised in accordance with IAS 39 in profit or loss. If the contingent consideration is classified as equity, it shall not

be re-measured until it is finally settled within equity.

Measurement of goodwill at acquisition

Goodwill arising on acquisition is recognised as an asset and initially is measured at cost, being the excess of:

(i) The aggregate of the consideration transferred, excluding directly related expenditure over

(ii) The Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities

recognised less the non-controlling interest in the acquiree (measured at fair value or their proportion of the

net asset).

In a business combination achieved in stages (a step acquisition), the previously-held equity interest in the acquiree is

re-measured at its acquisition date fair value and the resulting gain or loss, if any, is recognised in profit or loss, or in

other comprehensive income, as appropriate.



(continued)

Measurement period

The measurement period begins on the acquisition date and ends as soon as the information sought about facts and

circumstances that existed as of the acquisition date is available or it becomes apparent that more information is not

obtainable. However, the measurement period does not exceed one year from the acquisition date.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the

combination occurs, then provisional amounts are presented for the items for which the accounting is incomplete.

During the measurement period provisional amounts are retrospectively adjusted to reflect new information about facts

and circumstances that existed as of the acquisition date and, if known, would have affected the measurement of the

amount recognised as of that date.

During the measurement period, additional assets or liabilities are recognised and presented if new information is

obtained about facts and circumstances that existed at the acquisition date and, if known, would have resulted in the

recognition of those assets and liabilities at that date.

Measurement period adjustments

If, after re-assessment and adjustment during the measurement period, the Group’s interest in the net fair value of the

acquiree’s identifiable assets, liabilities and contingent liabilities exceeds the cost of the business combination, the

excess is recognised immediately in profit or loss.

Changes in the fair value of the contingent consideration that qualify as measurement period adjustments are adjusted

retrospectively, with corresponding adjustments made against goodwill.

Subsequent measurement of Goodwill

After initial recognition, goodwill is measured at carrying value less any accumulated impairment losses.



(continued)

Impairment of Goodwill

For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date,

allocated to each of the Group’s cash generating units that are expected to benefit from the business combination,

irrespective of whether other assets or liabilities of the acquirer are assigned to those units.

Cash-generating units to which goodwill has been allocated are tested for impairment annually or more frequently when

there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than

the carrying amount, then the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated

to the unit and then to other assets of the unit pro rata on the basis of the carrying amount of each asset in the unit. An

impairment loss is recognised in profit or loss and is not reversed in subsequent periods.

Where goodwill has been allocated to a cash-generating unit and part of the operations within that unit is disposed of,

the goodwill associated with the disposed operation is included in the carrying amount of the operation when

determining the gain or loss on disposal.

FUNCTIONAL AND PRESENTATION CURRENCY

The financial statements are presented in United States Dollars being the functional and reporting currency of the

primary economic environment in which the Group operates. Please refer to the paragraph below which details the

considerations made in determining the Group’s functional currency.

Determination of the functional currency

The shortage of cash and funded Nostro bank accounts saw the emergence of different prices for goods and services

settled via Realtime Gross Settlement System (RTGS), Point of Sale (POS) and mobile money. As a result of this and

other factors, management had to make an assessment as to whether the use of the USD as the Group’s functional

currency is still appropriate. The different modes of settlement do not result in change in functional currency.

Management concluded that the USD is still the functional currency.



REVENUE

Revenue, which excludes VAT, represents the invoiced value of fees subscriptions charged to students and members by

the Group. Revenue is measured at the fair value of the consideration received or receivable and is recognised when (a)

the significant risks and rewards of ownership of the goods are transferred to the buyer or in the case of services, over the

period in which the related services are performed or rendered, (b) it is probable that economic benefits associated with

the transaction will flow to the Group and (c) the amount of revenue can be measured reliably.

FINANCE INCOME

Finance income is recognised in the statement of profit or loss and other comprehensive income as it accrues, taking into

account the effective yield on the asset.

PROPERTY AND EQUIPMENT (PE)

Carrying amount

Items of PE are initially stated at cost. Subsequent to initial recognition, PE is measured at cost less accumulated

depreciation and impairment losses.

Depreciation

Items of PE are depreciated on the straight line basis at annual rates calculated to write off their depreciable amounts

over their estimated useful lives using the following annual rates:

Furniture and fittings 10%

Office equipment 10%

Motor vehicles 20%

Computer equipment 20%

Solar equipment 10%

Buildings 10%

The depreciation is charged to statement of comprehensive income.



(continued)

Impairment

The carrying amounts of the Group’s assets are reviewed at each statement of financial position date to determine

whether there is any indication of impairment. If any such indication exists, the assets’ recoverable amounts are

estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.

Impairment losses are recognised in the statement of comprehensive income.

Calculation of recoverable amount

The recoverable amount of items of equipment is the greater of the net selling price and value in use. In assessing value

in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects

current market assessments of the time value of money and the risks specific to the asset.

Reversal of impairment

Any impairment losses previously recognised are reversed if there has been a change in the estimates used to determine

the recoverable amount. An impairment loss is only reversed to an extent that the assets carrying amount does not

exceed the carrying amount that would have been determined, net of depreciation, if no impairment loss had been

recognised.

De-recognition of PE

PE is de-recognised when the asset is disposed of or retired from use and/or when no future economic benefits are

expected from its use or disposal. The gain or loss on disposal is included in the profit or loss in the period the PE item

is de-recognised.



EMPLOYEE BENEFITS

Employee benefits are all forms of benefits given in exchange for services rendered by employees. These are classified

as:

(i) Short-term employee benefits – benefits due to be settled within 12 months after the end of the period in which the

employees rendered related services;

(ii) Post-employment benefits are benefits payable after the completion of employment. Post-employment benefit

plans are benefit plans which are formal or informal arrangements providing post-employment benefits for one or

more employees. Such plans (or funds) may be either defined contribution funds or defined benefit funds; and

(iii) Termination benefits are employee benefits payable as a result of either the Group’s decision to terminate an

employee’s employment before normal retirement date, or an employee’s decision to accept voluntary redundancy

in exchange for those benefits.

INVENTORIES

Measurement

Inventories are stated at the lower of cost and net realisable value. Cost comprises all costs necessary to bring the

inventories to their present location and condition. Net realisable value is determined as the selling price in the ordinary

course of business less estimated costs of completion and the related selling expenses.

Cost is determined on the weighted average basis and includes expenditure incurred in acquiring the inventories and

bringing them to their existing location and condition.

Write-downs to net realisable value and inventory losses are expensed in the period in which they occur. The amount of

any reversal or write-down of inventories, arising from an increase in net realisable value, is accounted for as a reduction

in the amount of inventories recognised as an expense in the period in which the reversal occurs.



TAXATION

Income tax on the profit or loss for the year comprises current and deferred tax. Income tax is recognised in the

Statement of profit or loss and other comprehensive income except to the extent that it relates to items recognised

directly to equity, in which case it is recognised as equity.

Current tax is the expected tax payable on the taxable income for the year, using the rates enacted or substantially

enacted at the statement of financial position date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided using the statement of financial position liability method, providing for temporary differences

between the carrying amounts of the assets and liabilities for financial reporting purposes and the amounts used for

taxation purposes. The principal temporary differences arise from depreciation on equipment, capital allowances and tax

losses carried forward.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against

which the unutilised tax losses can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable

that the related benefits will be realised.

FINANCIAL INSTRUMENTS

Financial instruments carried in the statement of financial position include cash and bank balances, investments,

receivables and payables. The particular recognition methods adopted are disclosed herewith.

Classification

Trading instruments are those that the Group principally holds for the purpose of short-term profit taking.

Originated loans and receivables are loans and receivables created by the Group, providing money to debtors, other

than those created with the intention of short-term profit taking.

Held to maturity assets are financial assets with fixed or determinable payments and fixed maturity date that the Group

has the positive intent and ability to hold to maturity.



(continued)

Available for sale assets are non-derivative financial assets that are not held for trading purposes, not originated by the

Group, or intended to be held to maturity other than loans and receivables originated by the Group.

Recognition

The Group recognises financial assets held for trading and available for sale on the date it commits to purchase the

assets. From this date any gains and losses arising from changes in fair value of the assets are recognised.

Held to maturity loans and originated loans and receivables are recognised on the day that they are transferred to or

originated by the Group.

Measurement

Financial instruments are measured initially at cost, including transaction costs.

Subsequent to initial recognition all trading instruments and all available for sale assets are measured at fair value,

except that any instrument that does not have a quoted market price in an active market and whose fair value cannot

be reliably measured is stated at cost, including transaction costs, less impairment losses.

All non-trading financial liabilities, originated loans and receivables and held to maturity assets are measured at

armotised cost less impairment losses. Amortised cost is calculated on the effective interest rate of the instrument.

Fair value measurement principles

The fair value of financial instruments is based on their quoted market price at the balance sheet date without any

deduction for transaction costs. If a quoted market price is not available, the fair value of the instrument is estimated

using pricing models or discounted cash flow techniques.

Where discounted cash flow techniques are used, estimated future cash flows are based on management’s best

estimates and the discount rate is a market related rate at the balance sheet date for an instrument with similar terms

and conditions. Where pricing models are used, inputs are based on market related measures at the balance sheet

date.



(continued)

The fair value of derivatives that are not exchange-traded is estimated at the amount that the Group would receive or

pay to terminate the contract at the balance sheet date taking into account market conditions and the current

creditworthiness of the counterparties.

Gains and losses on subsequent measurement

Gains and losses arising from a change in the fair value of available for sale assets are recognised directly in the

statement of comprehensive income. When financial assets are sold, collected or otherwise disposed of, the

cumulative gain or loss recognised in the statement of comprehensive income is transferred to the profit and loss

statement.

Gains and losses arising from a change in fair value trading instruments are recognised in the statement of

comprehensive income.

Derecognition

A financial asset is derecognised when the Group loses control over the contractual rights that make up that asset.

This occurs when the rights are realised, expire or are surrendered. A financial liability is derecognised when it is

extinguished.

Available for sale assets and assets held for trading that are sold are derecognised and corresponding receivables

from the buyer for the payment are recognised as of the date the Group commits to sell the assets. The Group uses

the specific identification method to determine the gain or loss on derecognition.

Held to maturity instruments and originated loans and receivables are derecognised on the day that they are

transferred by the Group.



PROVISIONS

Provisions are recognised when the Group has a present obligation as a result of a past event, it is probable that an

outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be

made of the amount of the obligation.

The expense relating to any provision is presented in the statement of profit or loss and other comprehensive income net

of any reimbursement.

ACCOUNTING ESTIMATES

The preparation of financial statements in conformity with International Financial Reporting Standards requires

management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses

and disclosure of contingent assets and liabilities in the financial statements. The estimates, including those related to

provision for doubtful debts, inventory obsolescence, investments, PE and contingent liabilities are reviewed on an

ongoing basis and are based on the Council’s best knowledge of current events and actions of the Group as well as

historical experience and other factors that are considered to be relevant. Actual results may ultimately differ from those

estimates and assumptions.

Property and equipment

PE represents a significant proportion of the asset base of the Group, and as such, the estimates and assumptions made to

determine their carrying amounts and related depreciation expense are critical to the Group’s financial position and

performance.

Residual values of PE

Residual values are reassessed each year and adjustments are made where appropriate. The valuation methods adopted in

this process involve significant judgement and estimation.



(continued)

Useful lives of PE

The determination of the remaining estimated useful lives of PE is deemed to be a significant area of judgement.

Allowance for credit losses

The Group considers changes in the credit quality of the respective accounts receivables from the date on which credit

was granted up to the end of the reporting period before determining whether to provide for a debtor as doubtful.

Inventories provisions

All obsolete, damaged and expired inventories are written off in full. Slow moving inventories and stocks with fast

approaching expiry dates are provided in full where there is no realistic prospect of realising a sale before their expiry

and/ or obsolescence.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2017


1 INCORPORATION AND ACTIVITIES

The Group and its subsidiaries were all incorporated in Zimbabwe, and the Group’s main business is the

provision and advancement of good corporate governance and efficient administration of industry and public

affairs through the development of study and practice of secretaryship and administration of companies and

other bodies.

2017 2016

$ $

2 REVENUE

Examination fees 393 907 430 272

Re-registration 229 868 243 783

Membership fees 275 006 248 096

Annual conference 272 079 130 969

New registrations 17 120 21 320

Winter school 16 139 23 855

Election fees 13 200 10 050

Exemption fees 6 648 18 563

Continuous professional development 2 815 4 366

Levies - 36 954

__________ ________

1 226 782 1 168 228

__________ ________

3 OTHER INCOME

Sundry income 42 601 38 024

Rent receivable 28 644 2 343

ECG Awards 17 377 15 786

DFA 16 066 -

Study packs and past papers 15 311 14 815

Profit on disposal of equipment 8 788 -

Penalties 8 050 4 980

Annual charity golf day 6 413 6 866

Withholding tax recovery 5 778 24 262

Annual dinner 5 717 2 170

Gowns 5 427 5 935

Functions 1 927 3 263

Magazine advertising fees 717 1 678

Ties 297 356

__________ ________

163 113 120 478

__________ ________



2017 2016

$ $

4 ADMINISTRATION EXPENSES

4.1 Analysis

Staff costs (note 4.2) 509 332 557 613

Annual conference fund 217 428 99 949

Examination costs 156 107 188 083

Depreciation 110 689 109 917

Functions 50 378 40 588

Public relations 48 906 40 303

Computer expenses 44 563 49 820

Allowance for credit losses on PAAB membership subscriptions 27 000 -

PAAB subscriptions written off 12 187 14 373

Communication costs 35 896 36 924

Electricity and water 30 172 33 853

Motor vehicle expenses 28 701 23 652

Sale of stores expense 26 092 11 588

Meeting expenses 25 818 31 079

Travel expenses 22 925 23 359

Capitation fees 16 564 12 794

Office expenses 15 434 14 635

Winter school expenses 15 733 23 423

Insurance 15 424 15 668

Continuing professional development 12 864 11 913

Bank charges 12 719 13 103

Printing and stationery 12 529 9 798

Audit fees-external 9 660 11 906

Audit fees-internal 6 900 9 200

Repairs and maintenance 8 805 7 712

Corporate secretaries international 7 525 7 525

Annual golf day expenses 7 179 8 665

Legal costs 6 602 31 574

Technical and research costs 5 625 2 875

Cleaning expenses 5 386 4 913

Annual dinner 3 875 4 162

Publications 3 293 13 887

DFA expenses 3 257 -

Security 2 711 1 183

Library 2 183 3 606

Graduation prizes 1 580 1 485

Consultancy fees 1 055 -

Other general expenses 5 882 8 111

_________ _________

1 528 979 1 479 239

_________ _________



2017 2016

$ $

4.2 Staff costs

Basic salaries 390 282 435 438

Wages 6 122 6 117

Medical Aid 35 989 39 145

NSSA 6 948 7 545

Workers Compensation Insurance Fund 3 767 4 924

Funeral cover 2 797 1 828

Uniforms 6 692 9 002

Pension 23 964 26 331

Staff development 4 060 5 325

Leave provision 22 450 17 744

Long service awards 3 897 1 066

Other 2 364 3 148

_________ ________

509 332 557 613

_________ ________

5 NET FINANCING (COST)/INCOME

Interest receivable 17 457 41 114

Interest payable (31 513) (23 273)

Exchange loss (983) -

_________ ________

(15 039) 17 841

_________ ________

6 TAXATION

6.1 Credit for the year Zimbabwe income tax

- current - -

- deferred (16 202) (16 016)

_______ ______

(16 202) (16 016)

_______ ______



2017 2016

$ $

6.2 Reconciliation of tax charge/(credit) Notional tax charge/(credit) based on surplus/(deficit)

for the year at present tax rates (16 202) (14 468)

Additional taxation resulting from

permanent differences - (1 548)

_______ ______

(16 202) (16 016)

_______ ______

6.3 Assessed loss

The Group had accumulated losses amounting to $118 791 (2016: 87 207)

during the year ended 31 December 2017. In future years, the tax losses will

provide the Group with tax relief amounting to $30 589 (2016: $22 456)

provided that the Group earns sufficient taxable income to utilize the tax

losses within six years of the losses arising.

6.4 Deferred taxation

Opening balance (7 403) 8 613

Movement for the year (16 202) (16 016)

_______ _______

Closing balance (23 605) (7 403)

_______ _______



7 PROPERTY AND EQUIPMENT

Small Motor Computer Office Furniture Solar

Land Buildings Tools vehicles equipment equipment and fittings project Total

$ $ $ $ $ $ $ $ $

7.1 Cost/Valuation

At 31 December 2015 135 000 215 000 8 113 204 617 118 867 93 550 74 925 10 870 860 942

Additions from

subsidiary acquisition 285 082 454 019 8 113 - - - - - 747 214

__________ _________ _________ _______ ________ ________ ________ ________ _______

At 31 December 2016 420 082 669 019 16 226 204 617 118 867 93 550 74 925 10 870 1 608 156

Additions - 36 891 - 49 540 2 352 - 7 930 - 96 713

Disposals - - - (75 841) - - - - (75 841)

__________ _________ _________ ________ _________ ________ ________ _______ _______

At 31 December 2017 420 082 705 910 16 226 178 316 121 219 93 550 82 855 10 870 1 629 028

__________ _________ _________ ________ _________ ________ ________ _______ _______

7.2 Depreciation

At 31 December 2015 - 43 000 7 853 166 905 99 478 47 204 39 807 3 339 407 586

Additions from subsidiary acquisition - 43 000 7 853 - - - - - 50 853

Charge for the year - 66 902 510 15 689 10 436 9 141 6 138 1 101 109 917

__________ __________ __________ ________ _________ ________ _________ _______ ________

At 31 December 2016 - 152 902 16 216 182 594 109 914 56 345 45 945 4 440 568 356

Disposals - - (74 679) - - - - (74 679)

Charge for the year - 66 902 10 20 034 7 106 9 060 6 482 1 095 110 689

__________ _________ ________ ________ _________ ________ _________ _______ ________

At 31 December 2017 - 219 804 16 226 127 949 117 020 65 405 52 427 5 535 604 366

__________ _________ ________ ________ _________ ________ _________ _______ ________

7.3 Net book amount

At 31 December 2017 420 082 486 106 - 50 367 4 199 28 145 30 428 5 335 1 024 662

__________ ________ ________ _________ _________ ________ _________ _______ ________

At 31 December 2016 420 082 516 117 10 22 023 8 953 37 205 28 980 6 430 1 039 800

__________ _________ ________ _________ _________ ________ _________ _______ ________

At 31 December 2015 135 000 172 000 260 37 712 19 389 46 346 35 118 7 531 453 356

__________ _________ ________ _________ _________ ________ _________ _______ ________

7.4 Property with a carrying amount of $906 188 (2016: $936 199) were pledged for loans payable as disclosed in Note 11.



2017 2016

$ $

8 INVENTORY

Past exam booklets 26 258 36 367

Study packs 2 973 6 523

Other 4 039 3 692

________ ________

33 270 46 582

________ ________

9 ACCOUNTS RECEIVABLE

Prepayments 11 944 63 296

Value Added Tax 18 429 19 260

Staff debtors 10 944 8 875

Pay As You Earn (PAYE) 9 027 9 027

Sundry receivables 14 244 5 083

Zimbabwe Institute of Management - 5 360

CFX Travel and Tours 10 014 15 534

________ ________

74 602 126 435

________ ________

10 SHORT TERM INVESTMENTS

10.1 Analysis

Unit trusts (note 10.2) 267 484 504 923

Money market (note 10.3) 30 000 -

_________ _________

297 484 504 923

_________ _________

10.2 The unit trusts are held with Old Mutual Investment Group and are

measured at fair value through profit/loss.

10.3 Money market investments are held with Smartvest Wealth

Management and accrue interest at a rate of 3% per annum.

11 LONG TERM LOAN

11.1 Analysis

Loan payable 166 112 288 507

Current portion (88 499) (88 499)

________ ________

Long term portion 77 613 200 008

________ ________



11.2 The loan facility obtained from CBZ Bank Limited has a limit of $310 000 and accrues interest at a rate of

11% per annum. The loan is secured by:

Unlimited guarantee by the Council Members;

First Mortgage Bond for $418 500 over Stand 4494 Salisbury township of Stand 4450, Harare;

and

Cession of comprehensive insurance policy covering the property mortgaged to the bank.

The facility is being repaid in equal installments of $4 846.56 monthly with effect from January 2016 until

expiry on 31 December 2020.

2017 2016

$ $

12 ACCOUNTS PAYABLE

Fees prepayments 44 774 28 884

Deposits not yet receipted 10 830 3 899

Accrued expenses 34 504 55 248

Leave pay provision 33 032 22 989

Sundry payables 245 7 977

PAAB Election fees 7 405 8 055

PAAB subscriptions provision 27 000 -

Rental deposits 1 251 -

Withholding tax 1 845 2 162

________ ________

160 886 129 214

________ ________



2017 2016

$ $

13 DECREASE IN CASH AND CASH EQUIVALENTS

13.1 Opening balances

Cash and bank balances (note 13.3) 9 778 36 137

Investments 504 923 1 009 319

________ ________

514 701 1 045 456

________ ________

13.2 Closing balances

Cash and bank balances (note 13.3) 52 654 9 778

Investments 297 484 504 923

________ ________

350 138 514 701

________ ________

________ ________

Decrease in cash and cash equivalents (164 563) (530 755)

________ ________

13.3 In 2016 the Central Bank, through Exchange Control Operational Guide 8 (ECOGAD8), introduced a

prioritisation criterion which has to be followed when making foreign payments. Any foreign payments which

are made from bank balances above are ranked based on the Central Bank prioritisation criteria and paid

subject to the banking institution having adequate funds with its Foreign Correspondent Banks.

Included in cash and cash equivalents are bond notes and coins which are bearer instruments that are pegged

at 1:1 with the United States dollar. USD and bond notes and coins transactions are maintained in the same

bank account.

14 PENSION AND OTHER POST RETIREMENT OBLIGATIONS

Both the Group and the employees make contributions to the following pension funds:

14.1 Institute of Chartered Secretaries and Administrators in Zimbabwe Pension Fund

All eligible employees are required to be members of a defined contribution pension scheme administered

by Old Mutual Pension Fund.

14.2 National Social Security Authority

This is a defined benefit scheme established under the National Social Security Authority Act (17:04). The

Group’s obligations under the scheme are limited to specific contributions as legislated from time to time.

These are presently 3.5% of pensionable emoluments to a maximum of $700 per month per employee for the

period under review.



15 TREASURY AND FINANCIAL RISK MANAGEMENT

15.1 The main risks arising from the Group’s financial instruments are currency risk, interest rate risk, market

risk, liquidity and cash flow risk, and credit risk. The Group does not use derivative financial instruments

for speculative purposes.

15.2 Currency risk

This is the risk that the Group is exposed to unfavorable exchange rate movements on mismatched spot and

forward positions in a foreign currency deal.

The Group incurs foreign currency risk on transactions that are denominated in currencies other than the

United States dollar.

15.3 Interest rate risk

This is the risk arising from the adverse movement in the value of future interest receipts or commitments

resulting from movement in interest rates.

The interest rates for both interest receivable and payable from/to local financial institutions in Zimbabwe

are generally pegged against the Reserve Bank of Zimbabwe rate.

15.4 Market risk

The principal amounts of all financial assets and liabilities are fixed and not subject to market related value

adjustments.

15.5 Credit risk

This is the risk that counterparty to a deal or loan will default.

The Group’s cash resources are principally invested with financial institutions which are considered by

management to be reputable.

Adequate provision is made against any trade and other receivables considered doubtful.

15.6 Liquidity and cash flow risk

This is the risk of insufficient liquid funds being available to cover commitments.

The cash resources and/or reserve borrowing facilities available to the Group are considered adequate to

meet its short- term liquidity and cash flow requirements.

annual report · 2018-05-14 · notice of the annual general meeting 5 icsaz – 2017 annual report...

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