de tuin home owners association annual financial statements …detuinhoa.co.za/files/de tuin - 2019...

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De Tuin Home Owners AssociationAnnual Financial Statements for the year ended 28 February 2019

General Information___________________________________________________________________________________________

Country of incorporation and domicile South Africa

Nature of business and principal activities Home Owners Association

Trustees Ms J WieseMs C SwartMr E LooMs L LooMr A Barnardo

Registered Office Suite 2D, Cape Gate Décor CentreOkavango RoadBrackenfell7561

Auditors Craig Whittle AccountingChartered Accountants (SA)Registered Auditors

Administrators and accountants BACH Accountants and Management Consultants CC

Body Corporate registration number SS379/2002

Bankers First National Bank

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Index___________________________________________________________________________________________

The reports and statements set out below comprise the annual financial statements presented to the members :

Index Page

Independent Auditor's Report 3

Trustees' Responsibilities and Approval 4

Statement of Financial Position 5

Statement of Comprehensive Income 6

Statement of Changes in Equity 7

Statement of Cash Flows 8

Accounting Policies 9

Notes to the Annual Financial Statements 10 - 11

CRAIG WHITTLE ACCOUNTINGPostnet Suite #52, Private Bag X16, Constantia 7848 Tel : A76 456 3270

Practice number : 941641

INDEPENDENT AUDITOR'S REPORT

To the members of De Tuin Home Owners Association

Report on the Financial Statements

We have audited the annual financial statements of De Tuin Home Owners Association that comprises thestatement of financial position as at 28 February 2019 and the statement of comprehensive income,statement of changes in equity and statement of cash flows for the year then ended, and a summary ofsignificant policies and other explanatory information, as set out on pages 5-11.

Trustees' Responsibility for the Financial $tatemenh

The association's trustees are responsible for the preparation and fair presentation of these financialstatements in accordance with International Financial Reporting Standards for Smalland Medium-sizedEntities and the requirements of the CompaniesAct of South Africa, and for such internal control as thetrustees determine necessary to enable the preparation of financial statements that are free from materialrnissatement, whether due to fraud or error.

Auditor's Respqnsibility

Our responsibility is to express a conclusion on the annualfinancialstatements based on our audit. Weconducted our audit in accordance with lnternational Standards on auditing. Those standards require that wewe comply with ethical requirements and plan and perficrm the audit to obtain reasonable assurance whetherthe finncial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor's judgement, including the assessmentof the risks of material misstatement of the financial statementg, whether due to fraud or error. ln makingthose risk assessments, the auditor considers intemal control relevant to the entity's preparation and fairpresentation of the financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purposes of expressing and opinion on the effectiveness of the entity's internalcontrol. An audit also includes evaluating the appropriateness of accounting policies used and thereasonableness of accounting estimates made by management, as well as evaluating the overall presentationof the financial statements.

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

Opinion

ln our opinion, the financial statements present fairly, in all material respects the financial position of De TuinHome Owners Association as at 28 February 2019, and its financial performance and cashflows for the yearended in accordance with lnternational Financial Reporting Standards for Small and Medium-sized Entitiesand the requi of the Companies Act of South Africa.

Craig ntingCharteredCape Town'15 May 2019

(SA)

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Trustees' Responsibilities and Approval

The trustees are required to maintain adequate accounting records and are responsible for the content and integrity of the annual fnancial statements and related financial information included inthis report. It is their responsibility to ensure that the annual financial statements fairly present thestate of affairs of the home owners association at the end of the financial year and the results of itsoperations and cashflows for the period then ended, in conformity with International FinancialReporting Standards. The external auditors are engaged to express an opinion on the financial statements.

The annual finanial statements are prepared in accordance with International Financial ReportingStandards and are based upon appropriate accounting policies consistently applied and supportedby reasonable and prudent judgements and estimates.

The trustees acknowledge that they are ultimately responsible for the system of internal financial control established by the home owners association and place considerable importance onmaintaining a strong control environment. To enable the trustees to meet these responsibilities, thetrustees sets standards for internal control aimed at reducing the risk of error or loss in a costeffective manner. The standards include the proper delegation of responsibilities within a clearlydefined framework, effective accounting procedures and adequate segregation of duties to ensurean acceptable level of risk. These controls are monitored throughout the home owners associationand all employees are required to maintain the highest ethical standards in ensuring the homeowners association's busines is conducted in a manner that in all reasonable circumstances isabove reproach. The focus of risk management in the home owners association is on identifying,assessing, managing and monitoring all known forms of risk across the home owners association. While operating risk cannot be fully eliminated, the home owners association endeavours tominimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour areapplied and managed within predetermined procedures and constraints.

The trustees are of the opinion, based on the information and explanations given by management,that the system of internal control provides reasonable assurance that the financial records maybe relied on for the preparation of the financial statements. However, any system of internalfinancial control can provide only reasonable, and not absolute, assurance against material misstatement or loss.

The trustees have reviewed the home owners association's cash flow forecast for the year to 28February 2020 and, in the light of this review and the current financial position, they are satisfiedthat the home owners association has or has access to adequate resources to continue inoperational existence for the foreseeable future.

The external auditors are responsible for independently reviewing and reporting on the homeowners association's annual financial statements. The annual financial statements have beenexamined by the home owners association's external auditors and their report is presented onpage 3.

The annual financial statements set out on pages 5 to 11, which have been prepared on the goingconcern basis, were approved by the trustees on _________________ and were signed on its behalf by :

______________________ ______________________Chairman Trustee

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Statement of Financial Position Figures in Rand Note(s) 2019 2018

Assets

Non-Current AssetsProperty, plant and equipment 2 23 597 23 597

Current AssetsTrade and other receivables 3 330 650 331 592 Cash and equivalents 4 329 813 245 732

660 463 577 324

Total Assets 684 060 600 921

Equity and Liabilities

Members' funds and reservesAccumulated surplus 477 545 419 748

Liabilities

Current LiabilitiesTrade and other payables 5 206 515 181 173

Total Equity and Liabilities 684 060 600 921

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Statement of Comprehensive Income Figures in Rand Note(s) 2019 2018

RevenueLevies charged 509 600 509 600

509 600 509 600 Other incomeClearance fees 7 000 5 000 Building plans 2 250 2 250 Interest received 6 11 183 5 442

20 433 12 692

Operating expensesAdvertising and promotions 1 190 1 080 Auditors remuneration 9 3 750 3 750 Assets under R 7,000 written off 3 936 - Bank Charges 3 299 4 126 Electricity 16 220 14 700 Garden services 45 900 33 600 Insurance 8 936 8 319 Legal fees - 227 Management and accounting fees 39 532 38 903 Motor vehicle expenses 500 - Rates 14 13 Rent paid 1 500 1 200 Repairs and maintenance 2 974 967 Repairs and maintenance : Swimming pool 72 109 10 747 Security 267 000 250 792 Sewerage and refuse 4 061 4 374 Water 1 315 6 840

472 236 379 638 Operating surplus 57 797 142 654 Finance costs 7 - - Surplus for the year 57 797 142 654

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Statement of Changes in Equity Accumulated Total

Figures in Rand surplus equity

Balance as at 1 March 2017 277 094 277 094 Changes in equityTotal comprehensive income for the year 142 654 142 654 Total changes 142 654 142 654 Balance as at 28 February 2018 419 748 419 748 Changes in equityTotal comprehensive income for the year 57 797 57 797 Total changes 57 797 57 797 Balance as at 28 February 2019 477 545 477 545

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Statement of Cash Flows Figures in Rand Note(s) 2019 2018

Cash flows from operating activitiesCash generated by/(utilised in) operating activities 10.1 72 898 110 989Interest income 11 183 5 442

Net cash from operating activities 84 081 116 431

Cash flows from investing activitiesAcquisition of fixed assets - -

Net cash from investing activities - -

Total cash movement for the year 84 081 116 431Cash and cash equivalents at beginning of year 245 732 129 301Cash and cash equivalents at end of year 4 329 813 245 732

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Accounting Policies

1 Presentation of Annual Financial StatementsThe annual financial statements are prepared in conformity with International Financial Reporting Standards.The financial statements have been prepared on the historical cost basis, and incorporate the principalaccounting policies set out below. They are presented in South African Rands.

These accounting policies are consistent with the previous year.

1.1 Property, plant and equipmentProperty, plant and equipment are tangible items that : - are held for use in the production or supply of goods or services, for rental to others or for administrative purposes ; and - are expected to be used during more than one period.

Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costsincurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced partis derecognised.

Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses.

Depreciation is provided using the straight-line method to write down the cost, less estimated residual valueover the useful life of the property, plant and equipment, which is as follows :

Item Average useful lifeFencing 6 years

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and arerecognised in profit or loss in the period.

1.2 Financial instrumentsFinancial instruments at amortised costFinancial sintruments may be designated to be measured at amortised cost less any impairment using the effective interest method. These include trade and other receivables, loans and trade and other payables.At the end of each reporting period date, the carrying amounts of asstes held in this category are reviewed to determine whether there is any objective evidence of impairment. If so, an impairment loss is recognised.

1.3 TaxCurrent tax assets and liabilitiesCurrent tax for current and prior periods is, to the extent unpaid, recognised as a liability. If the amount alreadypaid in respect of current and prior periods exceeds the amount due for those periods, the excess isrecognised as an asset.

1.4 RevenueRevenue is measured at the fair value of the consideration received or receivable and represents the amountsreceivable for levies.

Interest is recognised, in surplus or deficit, using the effective interest rate method.

1.5 Borrowing costsBorrowing costs are recognised as an expense in the period in which they are incurred.

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Notes to the Annual Financial Statements Figures in Rand 2019 2018

2 Property, plant and equipment

Cost/ Accumulated Carrying Cost/ Accumulated Carryingvaluation Depreciation value valuation Depreciation value

Land and buildings 23 596 - 23 596 23 596 - 23 596 Fencing 91 104 91 103 1 91 104 91 103 1

114 700 91 103 23 597 114 700 91 103 23 597

Reconciliation of property, plant and equipment - 2019

OpeningBalance Additions Revaluation Disposals Depreciation Total

Land and buildings 23 596 - - - - 23 596 Fencing 1 - - - - 1

23 597 - - - - 23 597

Reconciliation of property, plant and equipment - 2018

OpeningBalance Additions Revaluation Disposals Depreciation Total

Land and buildings 23 596 - - - - 23 596 Fencing 1 - - - - 1

23 597 - - - - 23 597

3 Trade and other receivables

Outstanding levies 329 920 330 862 Deposits 730 730

330 650 331 592

4 Cash and cash equivalents

Bank balances 132 480 99 583 Investment account 197 333 146 149

329 813 245 732

5 Trade and other payables

Levies received in advance 198 649 169 867 Owners 500 500 Sundry creditors 3 019 2 993 Municipality : City of Cape Town 597 4 063 Audit fees 3 750 3 750

206 515 181 173

2019 2018

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Notes to the Annual Financial Statements Figures in Rand 2019 2018

6 Investment revenue

Bank interest received 11 183 5 442

7 Finance costs

Municipality : City of Cape Town - -

8 Taxation

No provision has been made for 2019 tax as the association has no taxable income.

9 Auditor's remuneration

Fees 3 750 3 750

10 Note to the cash flow statement

10.1 Reconciliation of net surplus to cash generated by operations

Net surplus 57 797 142 654 Interest received (11 183) (5 442) Finance costs - - Working capital changes 26 284 (26 223) Trade and other receivables 942 (74 807) Trade and other payables 25 342 48 584

Cash generated by operating activities 72 898 110 989

de tuin home owners association annual financial statements …detuinhoa.co.za/files/de tuin - 2019...

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