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Annual Report – Lambano Sanctuary March 2010 – February 2011

PO Box 752466 Gardenview 2047 [email protected] www.lambano.org.za

Tel: 27 11 622-6202

Fax:

27 11 615-3307

Mark 9:37

“Whosoever shall receive ( lambano ) one of such children in My name, receiveth

Mark 9:37

“Whosoever shall receive one of such children in My name, Receiveth Me

Our Mission 1 Introduction 2 Soccer Fever 3-4 Hospice 5 Volunteers 6 School Feeding Scheme 7 Board, Management & Staff 8 Chairman’s Report 9 Executive Director’s Report 10 Highlights at Lambano 11 Financial Donors 13 Financial Statements 14

March 2010 – February 2011

To accept into our care children who have been abandoned or orphaned, especially those infected or affected by HIV /AIDS. To provide these children with a caring Christian environment whereby they will be nurtured and cared for:

Physically Emotionally Spiritually

with unconditional love. We recognise the exceptional vulnerability of these children and proclaim that they are entitled to special care and assistance by their caregivers. March 2010 – February 2011 1

In May 2011 we are celebrating our 10th year of commitment by providing a loving, homely environment for our orphaned and abandoned HIV+ children. We currently house 30 permanent children in four homes; 34 Senator Rd, 82 Mc Alpine Rd, 36 Senator Rd, and 78 Senator Rd, Wychwood. Since our establishment in 2001 to end February 2011 we have received 217 children in total.

March 2010 – February 2011 2

This is the year that soccer fever reached a pitch, our children participated in several church soccer tournaments and celebrated the Soccer World cup with much enthusiasm.


Even the little ones got into the spirit of things, this little one was very good at blowing the vuvuzella.


Soccer outfits and boots donated to our children from Holland

The Hospice/Step Down Facility continues to provide a continuum of care for children aged birth to 16 years. The 12 bed facility provides a loving “home away from home” atmosphere and provides a venue to transition from the hospital. It also provides for children whose care is too complex for a family to care for them at home without medical support. Our focus is pain and symptom management, end of life, nutritional and respite care. We have admitted 55 patients since opening in July 2009.


This 10 year old was admitted weighing 9kg’s and was discharged weighing 22kg’s


Volunteers are an integral part of Lambano, we could not do what we do without them. Some of our volunteers have been with us since we started and other volunteers come to spend time with the children through a missionary organisation. Every single volunteer or visitor who comes through our doors has impacted our children’s lives in a positive way and we say thank you for your service, we really appreciate it.


The feeding schemes at the Mogobeng and Tamaho Primary School are doing well. Tamaho’s dining hall and kitchen was completed in 2010 and feeding commenced. Both schools are doing well and have established gardens to assist with the feeding project.

Office Bearers: Lance Laughton – Chairperson Dick Kelder – Vice Chairman Pastor – Wychwood Baptist Church Elder – Grace Christian Church Melanie Prinsloo (Streicher) – Director Richard Gauldie – Financial Director Founder of Lambano Sanctuary Member – Wychwood Baptist Church

Rose David – Member/Note Taker Lynette Croote – Executive Director Member – Wychwood Baptist Church Medical Supervisor – Lambano Sanctuary

Vuyo Qiki – Member Nike Tait – Member/Secretary Pastor/Teacher – Mercy Bible Church Ex Co-Ordinator – Lambano Sanctuary

Management: Executive Director / Medical Supervisor Lynette Croote Female White Bookkeeper Peggy Burger Female White Office & Community Co-Ordinator Martha Sibase Female Black House Manager for all the Homes Vivian Carrozzo Female White House Mother Gladys Mpete Female Black House Mother Grace Sibase Female Black House Mother Emma Madela Female Black House Mother Jeaneth Nesane Female Black Hospice Supervisor Cherilly Gumba Female Black Hospice Supervisor Rosemary Bongololo Female Black Enrolled Nurse Theodore Mathumbu Female Black

Staff: Care Givers 19 Female Black Driver/Maintenance Philemon Pete Male Black Gardner (Part time) Mpho Matsaung Male Black House Manager 82 McAlpine Rd Barbara Anderson Female White (Volunteer USA)



God has been good to Lambano! With Lambano about to head into its tenth year since its inception in 2001, one can look back and see the faithfulness of God. Each year, as the children get older, the challenges get greater. Who would have ever thought that we would see those first few children that arrived as babies starting to knock on the door of teenager-hood? There are now 30 children being raised in four homes with a hospice which opened its doors in 2009, along with a permanent staff compliment of 32 people. Undoubtedly this provides all sorts of challenges. The board has functioned extremely efficiently this 2010 year. It has a been a privilege to be involved in something that is dynamic, challenging and exciting with an eternal reward attached to it in terms of meeting the needs of the helpless and those who would without Lambano’s help have been left to fend for themselves. Thank you to each of you who have served on the board in your various capacities in order for us to do what has been done. This report is an account of that accomplishment and of the careful use of that which God has entrusted into your hands. I would like to thank our donors again. Without your unflinching financial and practical support, we would not have been able to keep our doors open, nor do a fraction of the things that has been done in meeting the needs of medically and physically needy children. Having a child in a home is one thing, but having a medically needy child is another requiring greater financial responsibility and a greater physical demand. Thank you, so much for your assistance in meeting the financial needs of both of these areas. Thank you too, to our permanent and voluntary staff. The work has largely fallen to you to do and you have been faithful in your tasks. Thank you for all that you have done for the children and ultimately for God as you have served Him. As we head into 2011, with the challenges mounting as the children get older, one particular aspect needs to be specifically mentioned and that is the educational need that is looming large before us. The children are, like all children, at various mental levels and we are finding that the schooling they are receiving is largely inadequate. It’s pitched either above or below them and is not proving to be the best in terms of their needs. We have discussed this as a management board and are continuing to do so, but there are no easy answers. Thank you again for your interest and assistance this year. Lance Laughton Chairman

Psalm 145 14-17 14: The Lord upholds all who are falling and raises up all who are bowed down. 15: The eyes of all look to you and you give them their food in due season. 16: You open your hand; you satisfy the desire of every living thing. 17: The Lord is righteous in all his ways and kind in all his works. I am always in awe and humbled at how faithful the Lord is in providing for our every need at Lambano. This year has been tough once again from a funding point of view, but it has helped us reflect on what our core focus is and it has enabled us to adjust things accordingly. We continue to care for our 30 permanent children, we are amazed at how fast they are all growing. We continue to provide them with a loving home and education in order for them to become productive members of society one day. The Hospice/Step Down Facility continues to take in sick patients who either require palliative care or care in the step down facility. Initially we had anticipated only admitting HIV+ patients, however due to the lack of facilities like ours we have admitted patients with burns, renal complications, brain injury and cardiac conditions. I would like to thank my dedicated staff for all their hard work over the past year. No man is and island and therefore we would not be able to achieve what we do without everyone’s input. I would also like to thank the board members for their unfailing support. To our volunteers and supporters in both finances and prayer thank you on behalf of the children and myself for enhancing their lives. Lyn Croote Executive Director

10 March 2010 – February 2011

3J Computer Adrian Air Liquide Ansell M Alliance for Youth Achievement Amistad Assumption Convent Barbara Anderson Beaven Peter Blom Thys Blue Apple BMI Foodpack Bowden & Co Breadline Bredell Leonie (nee Steyn) Caldas Engineering Celia & Grant Kelly Champion Tours Cimat Giuseppina Nadia Compact Disc Computerkit Conradi Mr Constas Marina Corona Lodge Cozmetek Crown Publications Cubico De Gouveia Ana Maria De Heer CA Department of Health Dischem Doublejack Construction Dr Quitter Edenvale Baptist Mission Com (EBC) Eli Lilly E Oppenheimer & Son Fink Diane G Finnegan A Fonte Guiseppe Fuchs Foundation Geldenhuys Vivienne Gillian God’s Treasury GP Windscreens Grace Christian Church Grace Seal Beach USA Harris Susan & Tony

Grace & friends Grant Thornton Hansen Family Harmelia Pre Primary Innerwheel Bedfordview Inst. Of Emergency First Aiders International Paint Izazi Solutions Jackie (Dana’s friend) Janse van Kareen Janse Lynda Gwyneth Kings Lodge Kinder Unserer KUW Kolok Kone Cranes KPMG staff Labuschagne HR Lauren Czepek Lauren Bowling Club Leicester RD School Life Spring Church Lilly Colleen Loser Nicola A Lukas SA (Pty) Ltd Malinsky Juan Alberton Manmay Marimuthu Urgan Mc Ewan FJ Mc Ewan Advertising Mercury Rising Mercury Plastics Metprep Engineering Mission Covenant Moulder LA Muller Gordon & Sue Murray & Roberts Construction Naidoo Kammy Naledi Projects Luxembourg Nashua Neilson N Nel P Overton Kurt Palmer Candice R RAC lunch

Penman Doug Port a Kitchen Primhill Serv Station Pro Touch Randolph NG (Mr) Reddy R Ross Controls Rotary Bedfordview Rowan Wendy A Roxburgh Ronald & Ysanne Ruddick Family S&F Management Samancor Staff (Billiton) Savannah Shelley Smack Smith Helen Societé Genéralé Sparke Jackie Spoor & Fisher Stein Zavi Stephs Parents Stichting Nomphilo – Aty St James School St Panteleimon School UK Thies Mr M Tiber Construction Tiribabi Brian Thomson Teuters Tradebridge Trans Electron Transformer Udoka Family Van der HREJ Van Dyk Vatn Ida Maria Van Zyl RM Vee Motors Wabco Weeshuis der H Welsh Carol Winnie Wychwood Baptist Women at Work Yellow Crossing



We thank the Lord for our sponsors, who continue to support us so faithfully. Be it money or time, your generous giving, has enabled us to take care of our children in the most loving way and has made each one of you a part of the Lambano family.

Murray & Roberts Construction – kindly sent a team to paint the roofs

of two of our homes

Lambano Sanctuary(Association incorporated under Section 2l)(Reg. No. 2006/0001 52108)

Annual Financial Statementsfor the year ended 28 February 201 I

Contents

Independent auditor's report

Directors' report

Statement of comprehensive income

Statement of financial position

Statement of changes in reserves

Statement of cash flows

Notes to the financial statements

Page

2

J

4

5

6

7

8- 16

Directors' approval of the annual financial statements

The annual financial statements for the year ended 28 February 20ll set out on pages 3 to 16 wereapproved by the board of directors on 28 September 201 I and are signed on its behalf by -

R Gauldie

To the members of Lambano Sanctuary (Association incorporated under Section 2l)

We have audited the annual financial statements of Lambano Sanctuary (Association incorporated underSection 2l), which comprise the statement of financial position at 28 February zOll, and the statementsof comprehensive income, changes in equity and cash flows for the year then ended, and notes to thefinancial statements, which include a su*miry of significant accounting policies and other explanatorynotes, and the directors' report, as set out on pages 3 fo 16.

Directors' responsibility for the financial stqtementsThe company's directors are responsible for the preparation and fair presentation of these financialstatements in accordance with Intemational Financial

-Reporting Standards, and in the manner requiredby the companies Act of South Africa, and for such intemil control as rhe directors determine is

necessary to enable the preparation of financiat statements that are free from material misstatement,whether due to fraud or error.

Audit or' s resp ons ibilityour responsibility is to express an opinion on these financial statements based on our audit. Weconducted our audit in accordance with International Standards on Auditing. Those standards require thatwe comply with ethical requirements and plan and perform the audit to obtain reasonable assurancewhether the financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe financial statements' The procedures selected depend on the auditor's judgement, including theassessment of the risks of material misstatement of the financial statements, wliether due to fraud orerror' In making those risk assessments, the auditor considers internal control relevant to the entity,spreparation and fair presentation of the financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an oplnion on ih" effectiveness ofthe entity's internal control. An audit also includes ivaluating the appropriateness of accounting policiesused and the reasonablene-ss of accounting estimates made-by management, as well as evaluating theoverall presentation of the financial statements.

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

Basi.s for qualified opinionIn common with similar organisations, it is not feasible for the Sanctuary to institute accounting controlsover cash collections from donations received prior to the initial entry tf the receipts in the alcountingrecords' Accordingly, it was impracticable for us to extend our examination beyond the receipts actuallyrecorded.

Qualified opinionIn our opinion, except for the possible effect of the matter described in the basis for qualified opinionparagraph, the financial statements present fairly, in all material respects, the financial position ofLamb-ano Sanctuary at 28 February 2Ol I, and its iinancial performance and cash flows for the year thenended in accordance with Intemational Financial Reporting Standards, and in the manner required by theCompanies Act of South Africa.

KPMG Inc.

Independent auditor,s report

Charte red Accountant ( SA)Registered AuditorDirector28 September 201I

KPMG lncKPMG Crescent85 Empire Road, Parktown, 2193Private Bag g, Parkview, 2i22, South Africa

KPf,zlG nc s a company incorporated under the South Afr canCompanies Act and a member firm of the Kp[,4G network ofrndependent member ftrms aff liated with KpMG lnternat onaCooperatrve {"KP\lG lnternatlonal ), a Swss entity.

KPMG lnc rs a Begistered Aud tot rn public practice, n terms of theAudrting Professjon Act, 26 of 2OOb

Regstratonnumbertggg/O2T543/2T z

Telephone +27 (11) 647 1111Fax +27 (11) 647 80OODocex 472 Johannesburglnternet http://www.kpmg.co.zal

Poilcy Board:Ch ef Executivet RNI Kgosana

Execut ve Directors: TH Bashall+, DC Duffle d, A Har, TH Hoole, FB Le th,JS Nlclntosh, ANy' N/lokgabudi, D van Heerden

Other Directors: Lp Fourie, T Fubu, A Jaffet E Magondo, CM Read.Y Suleman (Chairman of the Board), AThunstrom,JM Vice

The company s pr ncipal place of business is at KpMG CrescenrBh F-pt.e oo"o Pa.to{r. I^ar-d Ic, ot t-e o.-c-o,-' lame,s

MG Evans

avarablefor nspecton * British cit zen

Lambano Sanctuary(Association incorporated under Section 21)

Directors' reportfor the year ended 28 February 201 1

The directors have pleasure in presenting their report for the year ended 28 February 2011.

Nature of business

The association is incorporated under Section 21 of the Companies Act 1973, as amended, and its mainpurpose is to provide a home for abandoned or orphaned HIV children.

Review of operations

The Sanctuary continues to provide a loving home for 30 permanent children. Over time we have assisted

212 children. The Hospice/Step Down Facility continues to admit children aged birth to 16 years. Since

opening in July 2009 we have admitted 47 patients.

The School Feeding projects at the Mogobeng and Tamaho Schools continue to run well and they have

managed to feed +2 4O0 pupils a day between them. Lambano Sanctuary will continue to manage these

projects for another two years.

Financial statements

The financial statements set out the financial position of the Sanctuary and its income and cash flow forthe year.

Directors

The directors in office at the date of this report and during the year under review:

Mr L Laughton (Chairman) (Appointed l8 February 201 1)

Mr PA Hendey (Chairman) (Resigned 18 February 201l)Ms L Croote (Managing Director)Mr DC Kelder (Vice-chairman)Mr R Gauldie (Treasurer)Mr SG Abrahams (Appointed 19 February 201l)Ms M Prinsloo (Director)

Secretary

Mr SG Abrahams (Appointed 19 February 201 l)Mrs N Tait (Appointed 2 February 201 I )

Registered office

34 Senator RoadWychwood

Auditors

KPMG Inc.85 Empire RoadParktown

Bankers

Standard Bank of South Africa LimitedBedford GardensBedfordview


Statement of comprehensive incomefor the year ended 28 February 201 1

IncomeDonations receivedGrant received - Department of Health

- Welfare/fosterInterest receivedRent received

ExpenditureAdministration expensesStaff costsChildren costsCommunity involvement

Net surplus for the year

Note 20ll 2010RR

3232730 3 s72360f 2n338s I @11I zassell -lI zffi7ooll l7tl4oII o706ll ll6sl I

I csrso | | +zgsz I

3127 309 3075 489

3.1 a 767'7-2141 f 633 4x I3.2 I rozszz4 ll 162e338 I

r.r I ozt s7z I I 665 472 I

I rzoqs | | wzqe I

105 421 49687t

v4


Statement of financial positionat 28 FeQruary 201 1

Assets

Non-current assetsProperty, vehicles and equipment

Current assets

Sundry receivablesCash and cash equivalents

Total assets

Equity and liabilities

Retained earnings

Current liabilitiesSundry payables

Revenue received in advanced

Total equity and liabilities

Note 20ll 2010RR

4 2374225 2349 452

476795 247 854I 399

4683969 046

238 808

2851O20 2 597 306

26824L6

16843 143

165 461

2 576 995

203r120 3tt

2 851 020 2 597 306

ry

Lambano Sanctuary(Association incorporated under Section 2l)

Statement of changes in reservesfor the year ended 28 February 201 I

Balance at 28 February 2009





Retainedearnings

R

2080124

496 871

2 s76 995

L05 421

TotalR

2080124

496 87 t

2 576 995

105 421

2682416 2682 4t6

(


Statement of cash flowsfor the year ended 28 February 201 I

Cash flow from operating activities

Cash generated by operating activitiesInterest received

Net cash inflow from operations

Cash flows from investing activitiesProceeds on disposal of vehicle and equipmentAcquisition of property, vehicles and furniture

Net cash outflow from investing activities

Net increase/(decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

3s0 452 I 299 802

(r2o 86;) , ::tZlZ,(120 864) (l 390 072)

Note 24fiR

3437466706

2010R

I 288 151

l1 6516.1

229 588

238 808

(eo 27o)

329 078

6.2 468 396 238 808

t#


Notes to the financial statementsfor the year ended 28 February 201 I

1. Accounting policies

The financial statements incorporate the principal accounting policies set out below which are

consistent with those adopted in the previous financial year.

Statement of compliance

The financial statements are prepared in accordance with International Financial Reporting

Standards and the requirements of the South African Companies Act.

Basis of preparation

The financial statements are prepared on the historical cost basis except for certain financial

instruments carried at fair value

Property, vehicles and equipment

Property, vehicles and equipment are stated at historical cost less accumulated depreciation and

accumuiated impairment tosies. Subsequent expenditure relating to an item of property, vehicles and

equipment is capitalised when it is probable that future economic benefits from the use of the asset

*itt b" realised. All other subsequent expenditure is recognised as an expense in the period in which

it is incurred.

Depreciation is provided on the straight-line basis, over the estimated useful lives of the assets.

Depreciation is not provided for tand. Expected residual values are taken into account in determining

the depreciable values of assets.

Gains and losses on the disposal of property, vehicles and equipment are determined by comparing

the net disposal proceeds and the carrying amounts of the assets and are included in operating profit.

Residual values, methods of depreciation and useful lives of all assets are reassessed annually.

Financial instruments

Financial instruments are initially measured at cost, which includes transaction costs. Subsequent to

initial recognition these instruments are measured as set out below.

Receivables

Receivables are stated at cost less impairment losses.

1.1

t.2

1.3

1.4


Notes to the financial statementsfor the year ended 28 February 2011 (continued)

1. Accountingpolicies(continued)

1.4 Financial instruments (continued)

Financial liabilities

Financial liabilities are recognised at amortised cost, comprising original debts less principal

repayments and amortisation.

Cash and cash equivalents

Cash and cash equivalents are measured at fair value. For the purpose of the statement of cash flows,cash and cash equivalents comprise cash on hand, deposits held on call with banks, and investments

in money market instruments, net of bank overdrafts.

Offiet

Financial assets and financial liabilities are offset and the net amount reported in the statement offinancial position when the entity has a legally enforceable right to set off the recognised amounts,

and intends either to settle on a net basis, or to realise the asset and settle the liabilitysimultaneously.

1.5 Revenue

Revenue comprises donor and welfare funding, interest and sundry income. Income from donations

is recognised on a cash receipt basis.

1.6 Government grants

Government grants are recognised over the period for which the funding applies.

A govemment grant that becomes receivable as compensation for expenses or losses already

incurred or for the purpose of giving immediate financial support to the entity with no future costs is

recognised as income of the period in which it becomes receivable.

2. Tax exempt status

The Sanctuary has been approved as a public benefit organisation in terms of section 30 of the

Income Tax Act (the Act) and the Sanctuary is exempt from income tax in terms ofsection l0(lXcN) of the Act.

9

t(


Notes to the financial statements.for the year ended 28 February 2011 (continued)

3.2 Staff costs

FoodMedicalcostsSalaries and wagesStaff vehiclesTrainingTransport expensesUniforms

20ttR

20r0R

3.1


The net surplus is arrived at after taking the following intoaccount.

Administration expenses

Bank chargesCleaning materialsComputer expensesDepreciationFeesFixed assets written offGarden/pool maintenanceGifts and functionsInsuranceManagement meetingsPenaltiesPrinting and stationeryPublicity and advertisingRent paidRepairs and maintenanceSecurityTelephone and postageVehicle running costsWater and electricity

10 419

32 30396 091I 081

157166 413

3914t 774

17071 951

13 960| 747

28724202908218024195498312

150 163

7 7802262

28 23689 280

46816 35635 It72 tt4

45 9672 894

9 0lz3 263

46 3404t 177

t7 33045 236

tzt 427t19 t74

767 414 633 433

2 460

I 6s7 523t4 122

234886

332r 602190

16 2153 930l 183

4 888

t 629 338

t(t0

I 675 224


Notes to the financial statementsfor the year ended2S February 2011 (continued)

Profit from operations ( c ontinue d)

Children costs

ClothingEducational toys, books and outingsFoodFuneral costsMedical costs and equipmentNappies and toiletriesSchool costs

4. Property, vehicles and equipment

20lt

Land and buildingsMotor vehiclesComputer equipmentFurniture and fittingsMedical equipment

2010

Land and buildingsMotor vehiclesComputer equipmentFurniture and fittingsMedical equipment

2011R

2010R

3.

3.3.

l7 46921 055

2648303 400

22688620 494

117 839

t3 2712364

277 5262 8q8

222 648ll 563

135 202

671972 665 472

Depreciation7o

233.3333.3333.33

2t

233,3333,3333,33

2 451 683135 00048 10785 53736 368

Accumulateddepreciation

R

163902rt4 41738 17355 67410 304

Net bookvalue

R

2287 78120 583

9 93429 86326064

CostR

2756 695 382 470 2 374 225

2 342 938I 35 00042 63678 88936 368

I 15 08497 0833t 99339 188

3 031

2227 85437 917t0 64339 701

-r-1 J-1 /

2 635 831 286 379 2 349 452

t1

u


Notes to the financial statementsfor the year ended28 February 2011 (continued)

4. Property, vehicles and equipment (continued)

20tLLand and buildingsMotor vehiclesComputer equipmentFurniture and fittingsMedical equipment

201 0Land and buildingsMotor vehiclesComputer equipmentFurniture and fittingsMedical equipment

Carryingamount at

beginning ofyear

R

2227 85437 91710 64339 70133 337

AdditionsR

108 746

5 4716 648

DepreciationR

48 81E17 3336 180

16 4867 274

Carryingamount atend of year

R

2287 7El20 583

9 93429 86326064

2349 452 t20 864 96 091 2374225

990 781t3 778tt 2707 331

I 271 07752 00r

8 33347 79336 368

34 00427 862

8 960t5 4233 031

2227 85437 917l0 64339 70133 337

The land and buildings consist of StandEast Extension 2, Johannesburg, together

I 023 160 I 4t5 572 89 280 2349 452

125, Wychwood, Germiston and Stands 320 and 321, Malvernwith improvements thereon.

IJt2



5. Revenue received in advance

A grant of R427 050 was obtained from the Gauteng Department of Health and SocialDevelopment to help fund the operating costs of the Hospice over the period April 2010 to March2011. This was the first time that such a grant was received by Lambano Sanctuary from the

Department of Health and Social Development. This yielded a portion of the Revenue received in

advance.

The remaining portion of revenue received in advance arose from the contract in terms of whichLambano Sanctuary received the grant. A service level agreement between the Department ofHealth and Social Development and Lambano Sanctuary was entered upon the initiation of the

funding relationship. One of the conditions of the grant was compliance with a budget prepared by

the Department of Health and Social Development. This budget specified the categories ofallowable expenditure with any "unspent funds" re-payable to the Department of Health and SocialDevelopment at the end of the funding term.

A portion of unspent funding was thus classified as Revenue received in advance at the end of the

year. Subsequent to 28 February 2011, the Department of Health and Social Development has

agreed to allow Lambano Sanctuary to utilise the funds in categories other than these specified inthe contractual budget.

6.

6.1

Notes to the statement of cash flows

Cash generated by operating activities

Net surplus for the yearInterest receivedDepreciationProfit on disposal of fixed assets

Changes in working capitalIncrease in revenue received in advanceDecrease in sundry receivables(Decrease)/increase in sundry payables

6.2 Cash and cash equivalents

Market linked accountCurrent accountHospice Bank accountDepartment of Health bank accountCash on hand

2011R

105 421(6 706)96 091

194 806

165 461647

(17 168)

343 746

2010R

496 87 |(ll6sl)89 280

(25 5001

549 000

727 801ll 350

l 288 151

251 52618 136t2 431

179 8986 405

89 989t42 507

6 312

t3

468 396 238 808


Notes to the financial statementsfor the year ended 28 February 201 I (continued)

7. Related parties

The names of the directors are listed in the directors' report. Directors' emoluments, included instaff costs, amounted to R257 664 (2010 -R234 245).

One of the dwellings housing the Sanctuary is owned by one of the directors who provided this

accommodation at a nominal rent of RZ 240 per month (2010 - R2 200 per month).

8. Financial instruments

Overview

The Sanctuary has exposure to the following risks from its use of financial instruments:

o credit riskr liquidity risko market risk

This note presents information about the Sanctuary's exposure to each of the above risks, the

sanctuary's objectives, policies and processes for measuring and managing risk, and the Sanctuary's

management of capital. Further quantitative disclosures are included throughout these financialstatements.

The Board of Directors has overall responsibility for the establishment and oversight of the

Sanctuary' s risk management framework.

The Board of Directors is also responsible for analysing the risks faced by the Sanctuary, to set

appropriate risk limits and controls, and to monitor risks and adherence to limits.

Credit risk

Credit risk is the risk of financial loss to the Sanctuary if a counterparty to a financial instrumentfails to meet its contractual obligations, and arises principalty from the Sanctuary's sundry

receivables.

Trade and other receivables

The sanctuary's exposure to credit risk is influenced mainly by employees'ability to pay back the

employees' loans.

Management has established a process where loans to employees are monitored and recorded on

monthly basis. No collateral is required for the loans as payments are deducted from the employees'

salaries on monthly basis.

14


Notes to the financial statementsfor the year ended 28 February 2011 (continued)

8. Financialinstruments(continued)

Trade and other receivablesCash and cash equivalents

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum

exposure to credit risk at the reporting date was:

2011 2010R

8399 9046468 396 238 808

476795 247 854

Liquidity risk

Liquidity risk is the risk that the Sanctuary will not be able to meet its financial obligations as they

fall due. The Sanctuary's approach to managing liquidity is to ensure, as far as possible, that it willalways have sufficient liquidity to meet its liabilities when due under normal conditions.

The following are the contractual maturities of financial liabilities:

20tt 2010

Sundry payables 3 143 203ll

9. Relevant standards and interpretations effective for years ending after 28 February 2011

At the date of authorisation of these financial statements for the year ended 28 February 201l, there

were no relevant new standards and interpretations that had to be complied with.

,ff15



10. Hospice specific expenditure

The operating costs of the Hospice are accounted for separately. These are included with othercosts for disclosure purposes in the statement of comprehensive income.

The operating costs of the Hospice were as follows:

1 48840 s47

3958 150

9315 367

2010R

30 618I 6t7

24 491

5473 263

700

36 285t2 483

260

l9 5002791t 25t

4t 940

5 18;36760

5 843

4 989854

20tlR

s6 878Administration costsBank chargesDepreciation of fixed assetsOff groc/broad meetPrinting and stationeryPubl ic ity/advertis ingTelephones

House costsFixed assets written offGarden maintenanceInsurance - houseRentRepairs and maintenanceWater, electricity, rates and gas

Staff costsSalaries - AdminSalaries - Doctors and nursesStaff vehicle costsUniformsWages - Caregivers

Medical costsDisposablesDoctorsHospitalsInfection controlLab tests, x - rays and accessoriesMedication - children

Children's costsBaby disposalsClothing and linenFood - childrenFuneral costsNappiesToys, books, outings and parties

37 0444tt4

2 676

683;23 4tS

92 t74

446877

16294820 243I 099

404904

t7 602119 060

34 0467 459

75;6 582

t9 248

4934

70 lo73 400

13 199s33

t6

795 92t 148 732

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