Homestead Audited Financial Statements 2013 by Paul Vernon Hooper

GrantThornton An instinctfor growth" The Homestead(Projectsfor StreetChildren)

"s,:ffi;ents nnn,Iii.HHHl'i:i

for theyearended31 March2013

The Homestead(Projectsfor StreetGhildren)

(Non-Profit Organisation : 003-217 \ AnnualFinancial Statements for the yearended31 March2013

GeneralInformation Countryof registrationand domicile

SouthAfrica

Natureof businessand principalactivities

Projectsfor streetchildren

Management Committee

TshepoModiseHarvey VashMungal-Singh TammyHirschsohn ZaitoonAbed SammyWilliams StuartHendry Phouzaan Siebritz Nontwenhle Mchunu SandraMorreira(Ex Officio)

Management Staff

SandraMorreira Resigned PaulVernonHooper PetuniaTsweleng AnnievanWyk SolomanParton SonjaBasson Charmaine Germishuys

0rganisationaddress

150StrandStreet CapeTown 8001

Postal address

P O B o x2 1 5 3 8 KloofStreet 8008

Auditors

GrantThorntonCapeIncorporated Registered Auditors Chartered (S.A.) Accountants GrantThorntonSouthAfricais a memberfirm of GrantThornton lnternational Ltd

Organisationregistrationnumber

Non-ProfitOrganisation: 003-217

Levelof assurance

Theseannualfinancial statements havebeenaudited

Preparer

The annualfinancial statements havebeenindependanfly compiled by: SolomanParton

Published

08 August2013

The Homestead(Pro_jects for Street Ghildren)

(Non-Profit Organisation : 003-217) AnnualFinancial Statements for the yearended3.1March2013

lndex The reportsand statementsset out belowcomprisethe annualfinancialstatementspresented to the Management committee: Index

page

Independent Auditors'Report

3-4

Management Committee's Responsibilities andApproval Management Committee's Report

o- tu

Statement of Financial Position

Statementof Comprehensive Income

Statement of Changesin Equity

Statementof CashFlows AccountingPolicies Notesto theAnnualFinancial Statements

14 15-18 19-26

GrantThornton An instinctfor growth"

Chartered (SA) Accountants GrantThornton CapeInc. 6rhFloor,GrantThornton House 119Hertzog Boulevard, Foreshore CapeTown8001 POBox2275,CapeTown,8000 Dx158CapeTown T +27(0)214178800 F +27(0)214178700

Independent Auditors'Report @

To the ManagementCommitteeof The Homestead(Projectsfor StreetChildren) We haveauditedthe annualfinancialstatements (Projects of The Homestead for StreetChildren), whichcomprise the l a r c h 2 0 l 3 , t h e s t a t e m e n ct oofm p r e h e n s i v e i n c o m e , t h e s t a t e mcehnat n s t a t e m e n t of ifn a n c i aplo s i t i o n a s a t 3 M og f esin equity,the statement of cashflowsfor the yearthenended,anda summaryof significant policiesand other accounting explanatory notesas setout on 6to 21. Managements' Responsibility for the Annual FinancialStatements The organisation's Management Committee is responsible fortheprcparation andfairpresentation of theseannualfinancial stattements in accordance withInternational Financial Reporting Standards, and requirements of the: Fund-raising Act no 107 o'f1978,and for suchinternalcontrolas the directorsdetermineis necessaryto enablethe preparationof annual financialstatementsthat are free from materialmisstatements, whetherdue to fraudor error. Auditors'Responsibility Our responsibility is to expressan opinionon theseannualfinancial statements basedon our audit.We conducted our auditin accordancd withInternational Standards on Auditing. Thosestandards requirethatwe complywithethical requirements andplanandperformthe audittoobtainreasonable assurance whethertheannualfirrancial statements are free from materialmisstatement. procedures An auditinvolvesperforming to obtainauditevidence aboutthe amountsanddisclosurers in the annualfinancial judgement, statements. The procedures selecieddependon the auditors' including the assessment of the risksof material misstatement of the annualfinancialstatements, whetherdueto fraudor error.In makingthoseriskassessments, the auditorconsidersinternalcontrolrelevantto the entity'spreparaiionand fair presentation of the annualfinancialstatements in ordertodesignauditprocedures thatare appropriate in the circumstances, but not forthepurposeof expressing an opinionon the effectiveness of the entity'sinternalcontrol. An auditalsoincludesevaluating the appropriateness of policiesusedandthe reasonableness accounting of accounting estimates madeby management, as wellas evaluating the overallpresentation of the annualfinancialstatements. We believethatthe auditevidence we haveobtainedis sufficient andappropriate to providea basisfor our qualified audit opinion. Basis for QualifiedOpinion In commonwithsimilarorganisations, it is notfeasiblefortheorganisation to institute accounting controlsovercash priortoinitialentryof the collections fromdonations collections andbequestsin the accounting records. Accordingly, itwas impracticable for us to extendourexamination bevondthe receipts actuallvrecorded. QualifiedOpinion In our opinion,exceptfor the possibleeffectsof the matterdescribed in the Basisfor Qualified Opinionparagraph, the presentfairly,in all materialrespects, statements annualfinancial (Projects the financialpositionof The Homestead for S t r e e t C h i l d r eans) a t 3 1 M a r c h 2 0 1 3 , a n d i t s f i n a n cpiearlf o r m a n c e a n d c a s h f l o w s f o r t h e y e a r t h e n e n d e d i n a c c o r d a n c e with International Financial Reporting Standards, andthe requirements of the Fund-raising Act no 107of 1978. 0irectors M.H.Abbas K.lV.Bowman J.G,Glass L Hashim D.Honeyball H.C.Kilian B.J.Lodewyk H.J,Salmon R.Schollz LM.Scott(Managing) M.S.Willimott

Audit'Tax.Advisory GrantThotnloncape|ncorporatedRegislraljonNo.:2010l016204|21isamemberfiImofGrantThorntonSouthAfricawhichinturnisamembe.o

IndependentAuditors' Report Other Matter The supplementary information out on pages22 to 23 does not form partof the annualfinancialstatements .set and is presentedas additionalinformation. we havenot auditedthis information and accordinglydo notexpressan opinion thereon.

Gr^',*

-TXur'.Ft4

Grant Thornton Cape lncorporated CharteredAccountants(S.A.) RegisteredAuditors

Per: lmtiaazHashim ChafteredAccountant (S.A.) RegisteredAuditor Cape Town 08 August 2013

G"-J* [

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The Homestead(Projectsfor StreetChildren)

(Non-Profit Organisation: 003-2i7) AnnualFinancial Statements for the yearended31 March2013

Management committee'sResponsibirities and Approval The Management Committee is requiredin termsof the Fund+aising Act no 107of 1g78to maintainadequateaccounting recordsand is responsible forthe contentand integrity of the annualfinancial statements and relatedfinancialinformation includedin thisreport'lt is theirresp-onsibility to ensurethatthe annualfinancial statements rairiypiesentthe stateof affairs of the organisation as at the end of theJinancialyearand the resultsof its operationsand cashn-owstor the periodthen ended,in conformity withInternational Financial iteportingStandarcls. The externalauditorsareengagedto expressan independent opinionon the annualfinancial statements. The annualfinancialstatements are preparedin accordance withlnternational ,standards Financial Reporting andare baseduponappropriate policiesconsistently accounting appliedandsupported by reasonable ani prudentjudgments and estimates. The Management Committee acknowledge thattheyare ultimately responsible for the systemof internal financialcontrol established by the organisation and placeconsiderable importanieon maintaining a strongcontrolenvironment. To enable the Management Committeeto meettheseresponsibilities, the Management Committee setsstandards for internalcontrol aimedat reducing the riskof erroror lossin a costeffective manner.ihe standards includethe properdelegation of responsibilitieswithin a clearlydefined framework, effective procedures accounting and adequailsegregation of dutiesto ensurean acceptable levelof risk.Thesecontrolsaremonitored throughout the organisation andallimployeesare required to maintainthe highestethicalstandards in ensuringthe orgaiisation's businessis conducted in a mannerthatin all reasonable circumstances is abovereproach. Thefocusof riskmlnagementin the organisation is on identifying, assessing, managingand monitoring all knownformsof riskacrossthe organisation. Whileoperating riskcannotf'e frtty eliminated, the organisation endeavours to minimiseitby ensuring thatap-propriate infrastructure, controls, systemsand ethicalbehaviour are appliedand managedwithinpredetermined-proceduies and constraints. The Management Committee is of the opinion,basedon the information andexplanations givenby management, thatthe systemof internalcontrolprovidesreasonableassurancethatthe firrancialrecordsmay bJrelied on for the preparation of the annualfinancial statements. Hgw.evgr, anysystemof internalfinancial controlcan frovideonlyreasonable, and not absolute, assurance againstmaterialmisstatement or loss, T h e M a n a g e m e n t C o m m i t t e e h a s r e v i e w e d t h e o r g a n i s a t i o n ' s c a s h f l o w f o r e c a s tM f oar rt ch he 2y 0 e la4rat on3dl, i n t h e lightof thisreviewandthe currentfinancial position, theyaresatisfied thatthe organisation hasor hasaccessto adequate re{rources to continuein operational existencefor the foreseeable future. Theexternalauditorsare responsible for independently reviewing and reporting on the organisation's annualfinancial . The annualfinancialstatements havebeenexaminedby the orgaiisation's externalaurlitors andtheirreporti on pages3 to 4 financial statements set out on pages6 to 26,whichhavebeenpreparedon the goingc;oncern basis,were manaoement committee on 0-8Augustzbt g anoweresignedon its beharfby:

\\e

Paul Director

The Homestead(Projectsfor StreetChildren)

(Non-Profit Organisation: 003-217) AnnualFinancial Statements for the yearended3,| March2013

lVlanagement Committee'sReport The Management committeesubmitstheirreportforthe yearended31 March2013. 1.

Reviewof activities

Mainbusinessand operations The organisation is engagedin programmes for streetchildrenandoperatesin southAfrica.The financial statements incorporate all five programmes: 1)TheHomestead, an intakeforstreetchildrenin the centralcitv. 2)Yizani,a drop-incentrein CapeTown. 3) Elukhuselweni, a secondstageunitfor the moresettledchildren. 4) Masithethe, a skillstrainingand povertyalleviation programme. 5) communityoutreachProgramme, earlyintervention iriKhayelitsha and Manenberg. The operating resultsandstateof affairsof the organisation arefullyset out in the attachedannualfinancial statements and do notin ouropinionrequireanyfurthercomment. 2.

Goingconcern

The annualfinancial statements havebeenpreparedon the basisof accounting policiesapplicable to a gorngconcern. This basispresumes thatfundswillbe available to financefutureoperations andthatthe realisation of assetsand setilement of liabilities' contingent obligations andcommitments willoccurin the ordinarycourseof business. 3.

Eventsafter the reporting period

The Management Committee are notawareof any matteror circumstance arisingsincethe end of the financial year,that w o u l d h a v e a m a t e r ieaflf e c t o n t h e a n n ufai nl a n c i aslt a t e m e n t s f o r t h e y e a r e n d e dM3al r c h 2 0 , l 3 . 4.

ManagementCommittee

The Management Committee of the organisation duringthe yearandto the dateof thisreportare as follows: ManagementCommiftee

Position

VashMungal-Singh TshepoModiseHarvey TammyHirschsohn ZaitoonAbed SammyWilliams StuartHendry Phouzaan Siebritz Nontwenhle Mchunu

Chairperson Vice-Chairperson Secretary Treasurer

Management Staff SandraMorreira PaulVernonHooper PetuniaTsweleng AnnievanWyk SolomanParton SonjaBasson Charmaine Geldenhuys

Resigned Appointed

Position Director Director EarlyIntervention ProjectsManager Job Creations andOperations Manager AccountsManager UnitManagerElukhuselweni UnitManagerIntakeShelter

Auditors

GrantThorntoncape Incorporated willcontinuein officein accordance withthe Fund-raising Act no 107of 1g7g.

The Homestead(pro_jects for StreetChildren)

..OOS-Zl7l (Non-Profit Organisation ArrnualFinancial Statements for the yearended31 March2013

ManagementCommittee,sReport 6.

Director'sReport

The Homestead,s Mission Launchedin cape Townduring1982and in response to the hundredsof childrenlivingon the streert, todayThe Homestead offersa comprehensive netof.prevention, earlyintervention, outreach, siaoilization, residential care,familyreunification job creationprogrammes and for childrenand childrenat riskof iiuing,*otilnlnd begging on the street.The Homestead strivesto offertherapeutic, development and educationopportuiitiesttrat-setchildrenup for the ber;tpossible future. The Homestead believes thatprevention is betterthancureandcuremeansfixingandnot hidingthe problem. we understandthat one cannotcarefor or protecta childwhilst ilrat crriroremainson the streetbecausethe streetenvironment is too harsh'detrimental, exploitative andabusiveto children. one therefoieneedsto focuson movingand keepingchildren offthestreet,a hugechallenge as traumatized childrenlockontosti"uirii" and requirea programme that: ' Providesa comprehensive set of residential, therapeutic, rievelopmental andeducation careso children transition and stay off the street. 'Addressesthe directsupport,such as the foodand moneythatthe childrenget frombegging,and thataffirms theirchoiceto remainon the street. ' Protectsvulnerablechildrenfrom the exploitation that drawsthemto and locksthem into streetlife 'Goes beyonda simpleperceived needsorwelfarefocusedappioactr. lt requiresrt.roii"ii"tn"r"peutic response. ' collaborateswith a widevarietyof stakeholders flrattogelheiir"."nt a consistentmessageand focuson what is in the child'sbestinterests. ' Ensuresthatthe legalcaresystemprotects childrenanddoesnotmarginalise themfurther. t" onlywiththe childrenbui incorporates theirfamiliesand corimunities as an integrat partof the ;Y;,H. Organisational Structure The Management committee,consisting of ninememberselectedannuallyat theAGM, hasfiduciary responsibility for the organisation and meetsmonthlyto scruiinise financialreportsano overseJoperations. The Director is responsible for management of the organisation. The Homestead's kee[s its st"ff ;;p6;ent small,whilstremaining withinthe requirements of the labourlaw regarding hoursof work.In totalthereaie +z rrtrtir" and 3 parttimestaffmembers, the

chirdren onashift basis. Arrorourchird in'l'"'!,,"oc"ss oracquiring ;1,ffi::fiXT,[iliJ::["vTJ,H'3"1T ""'u"i,ri"'"5 The Homestead'sProjects Thisreportprovidesan overyiew of the organisation,s achievements in 2012t13. The HomesteadPrevention and Early lnteruention project: TherHomesteadoffersPreventionandEarly Intervention f,rogr"m-es (pEl) in the most povertystrickenand gang infested communities-s-urrounding CapeTown,communities who hist5ricalty tnve pisfred childrentowardsthe street. The Homestead PEIprogrammes alsoengagechildren, who.live, workor beg'onttrestreet,bothin the communities of origin and in the centralbusinessdistrictsof clpe Town. The Homestealpl-t'piogr"rr". consistof: 1. l'he HomesteadDrop-inCentres: The Homesteadhas threeDrop-incentres,one eachin Khayelitsha, Manenbergand woodstock. Drop-rncentresoffer vulnerable childrenan alternative to.streetlifeby offeringth; ba;ic;';f hygiene,-nutrition, cleanclothes,basicsupport, nunleracyand literacyskills,lifeskills,recreationand a.iafe .p""" f-romtne streetsfilledwith gangs,drugsand exploitation' Drop-incentresaimto reducethe vulnerability "*"y throughspecialised oithe childien supportincluding substance abusecounselling, schoolattendance support,familypreservatlon prolramr"r, u" wellas parentalguidance. Moreoften thannot it is thissupport,alongwitha pairof school-shoes and a wani rn"ulth"t keepsvulneraur" ii'ilor"n in theirfamilies, attendingschooland off the streets.The HomesteadDrop-incentres: ' offer supportandcarewhenandwhere childrenare mostvulnerable, for instanceafterscl-rool, duringschool holidays,when gangactivityis at its worst,and alsoby us beingin their communities, we recluce the child,s vulnerability andofferthemprotection froma harshrealityof ex loitation and abuse. 'Allow us to reachchildrenthatwerepreviou.sly ignoredand to'providea basefromwhichwe can workwith hardto reachchildren,for instancethe childrenwho liv-eInd work on tnl knayelitsha taxi rank,and very hardened,streef wisechildrenwho abusesubstances. ' Drop-incentresallowus to offera consistent and structurerjintervention programmebothfor vulnerable community childrenas wellas for hardened streetchildren.Oftenthe centrewillworkwiththe childrenlivingon the streetin the morningandwiththevulnerable community chilclren in the afternoon . ' Drop-incentreshavea highimpact, for instanceour Manenberg Drop-incentreis basedin the middleof the most

The HomesteadLpro_jects for StreetGhildren)

(Non-Profit Organisation : 003-21 i AnnualFinancial Statements for the yearended31 March2013

ManagementGommittee,sReport oangerous ganglandin cape Town' Thiscentreworks withabout20 childrena day,moreduringthe school holidayswhichequatesto^ll': -":lu" 1"rqi.g] 3a "ew childrenandtheirfamilieseachyearas wellas engagrng .:,l",ivin" n-","sread

Khayeritsiha Drop_in centre wc with WiliA|i:ti.t:r",,il[',,'":;Tll:::::*^'.",:1.I"",:, 30to40children each davandsometime.;;;;rp t";u'Jr.''iii".,''iljlrlJfi: l:il:r}?,?,iJl?rlJ,i!Xi.'"'n' of childrenare beingprotectedand turnedari,;;Jir"r'th;

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yearby The Homesteaddrop-in

2. The HomesteadStreetOutreachprogramme: outreachwork on the streetsof cape r'own trasdeveloped alongwith our abilityto successfully keepand get childrenoff the street ln the year2000cape Townhad 786 children rivingin the siieets,3ao of whomwere in the cape Town bowl' The Homestead city was instrumental in drastically reducing"thi" nrro"r so thattodaywe aredownto lessthan20 childrenon the city bowlstreets,as well po"t ut. of aboutio to ts livingon the streetin scatteredareasaround cape Town' childrenhowevercontinue ".to'pourontoth.ejtregj, "r,ilJr"n rrigrrri!r'teo oy ttrJhtgl.rnrroli. or childrenattendingThe Homestead Drop-incentres,as wellas from'thefactthatrhe HomesteiJlntake shelteris stillturningaroundbetween100 and 130childrena yearfromthe centralcitystreets. Thisis ruou p*.ible by the intenseworkof the Homestead , aretherrontlineot'geiting "ir andkeepins crrlJren?tnestreet.fne

ro[ oin," Homestead

Sijli:::l ffi[?':J::

'ldentify'developcontactwith andguidechildrenliving,workingand beggingon the street,as wellas vulnerable communitychildrenwho seemto be driftingtowards thl street,iowarosirr-eippropriateHomesteaoprogramme. ' Haveongoingcontactwith hardened chiliren Irirg ;. th;1-il""t, workingwittrttremin The Homestead drop-in

response totryandunlock suci'r chitdrJn rrom thesireei'ano intoa :,"#81fr:l";:ilt:X'#,^ffJolistic setthem ' collaborate withbusiness, government deparlments, the police,city improvement districts and othersto help

children comins ontothestreet *"it theeiproiiation keeps on ifl:1tfl"?:1f;lJtor ". "" "no"rpporr,that chitdren '

Ensurethatchildrenon the streetare legallyprotected, thattheirfamiliesare identified andworkedwith,andthat wherenecessary a legalprocessis begunto-ensure suchchildrenare properlycaredfor and protected. 3. AfterSchoolCareand Supportprogrammes: The Homestead runsa specialised pt6gtutt; at a site c schoolfor 35 to 40 vulnerable children, pupilswho havebeen identified by teachersandotherpupilsis traumaiised, havingdifficultilsano requiring irruoi"iu J ongoingtherapeutic support' The Homesteadensuresthesechildrenhave a me-al,are keptrat" coripr"i"G"rJp"rtic and lifeskills programmesnecessaryto helpthem copewith "nbtheirvery difficulttamii/ano community realities.Tfre HomesteadAfter school Programmealsoworksdirectlywith ilre crriro'sfamilies iuiJrr iloth the childand theirfarniliesout to specialised services whennecessary The successand impactof thisprogramme, "no in helpingto stabilise andprotectvulnerable children'meansmoreschools.are requesting thisserviceandt[at the currentschoolwantsThe Hornestead to expandthe programme for pupilsfromtheirlowergradei. Thisis a highimpact Homesteao programme thatwillundergointense growthoverthe nextfew years. programmes: 4. Familypreservation All childrenwantto be at homewiththeirfamiliesif at all possible. The Homestead familypreservation programme aimsto try andkeepor returnvulnerable childrento theirhomesandfor thiswe needfamiliesto be a safe,c;aring environment. The Homestead familypreservation programme consistsof homevisits,paienttrainingandguidance, basicsupportsuch as foodparcels,referralof mothersto TFe Homeste?djob creationprojJci linkingparentswith r;hildcaregrants, housing,schooling,healthservicesand so on. Atl ftr3 H.gmesie"; "no havea familyempowerment ir"d;;;r"s and preservation focusand workwithchildrenandtheirfamiliesas one. The Homestead Residentialprogramme: one cannoteffectivelyworkwith hird to reach,extremelyvulnerable, traumatisedor streetconnectedchildrenwithoutan appropriate residential progfamme thatallowsfor the.childto ue stabiliseJ, healedand developed in a safe,consistent, thenpeuticandempowering space' The Homestead residential p.E;;il; doesnotwarehouse children; it focuseson transitionoff the streetand/orawayfromvulnerability, abuse,e*iroitiitrn ano negtect,The HomesteadResidential Programme consistsof rhe HomelteadIntakesrrlti"t andrhe irorest""J child and youth care cerntre in Khavelitsha: 5. The Homestead IntakeShelter

ili,il?T:fli#Tn::1il*:ff:,,:,:.,;:,ll,Lp

rink between thestreet andabrisht future formany

;,I_:""*t3jT:,lllhg :ilXTiltr,*Liil:i'A.'":Hi":l::y:if,yt1,l* igjryiqli;;ii;""il=ffi;;ffi#il;rTTl'jtffil",t#i.,1"" ,;;J;i;,iffi ffi:!oT#il ;::f#lil?i jF-t!il+;g i{;i";;"#;ilIlo"l,l,il!"0.,:i"?i:;yjilJ:?; |il|",:AX1l1f fl:,':X:i?:,:""fl,"",ifli:::1,: t13I;ld du";i"il;;t *ftt;'it"";ffi";:'J,i;"'?;i[:T'5::?,,:'il5"1 ::il"t"::,Hi^1J""?li;?,1:Pl:t"*i:.l famif ies 2,nd 640/^ ara m^\,ad

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emotionaly

,,'""ttr"i, i'-u,,'.*tT#jlJ"Ji"rrv';;#;ffii'ff;$."i# ::lHj::JlHTl^,1?:':jll,g::l.y!:.1'-:. sulrstancesand yp_::: :::g lg]iy,lsw*hout.routine 6r;"ity;i;"i;; il;;#ffi; ilffi;l ' Reception thatunderstanoJtrat suchchitdren;;;t,.;;;;il"i ff;;;;iilir"r,"i'iitlio'".vides proper

The Homestead(Projectsfor StreetChildren)

(Non-Profit Organisation : 003-21 7) AnnualFinancial Statements for the yearended31 March2013

ManagementCommittee'sReport orientation no matterthetimeof admission, thatincludes tlrebasicsof a shower,newclothes,a toothbrushand something to eat,and a properintroduction to the wholeprogramme including:theirniceclean bed;the shelter and it'sthe generalrules,who to turnto for helpandthe dailyroutine;and a linkto a currentchildwho looksafter the newadmission and introduces himto the otherchildren. ' A settle-inperiodwherethe childis slowlyintroduced to the structure of the centreandso theycan build assurance withina safeenvironment protected fromphysical, socialandemotional harm. Thisincludesa development assessment, including an initialassessment withinthe first24 hours,a homevisit(wherepossible), a preliminary Individual Development Planwithin2 weeksandlinksto community resources suchas boxing,karaie, dancing,yogaand so on. Oncesettledthe childis: admitted to Learnto live,an independent schooloffe-iing specialised numeracy and literacyprogrammes; undergoes drugabusecounselling; and,if necessary, referialto a specialised drugtreaimentcentreor out-patient therapyprogramme.The childrenareenc'ouraged to participate in practiceof theirchoice. the religious ' Aftertwo monthsat The Homestead Intakeshelter,the childbeginsto preparefor longterrmplacement, suchas movingto The Homestead ChildandYouthCareCentrein Khayelitsha or backhometb theirfamily. To ensure the childsettlesat homeor at theirnewplacement, The Homestead IntakeShelterrunsar aftercare programme to reinforce theirplacement for a periodof 6 to 12 months.Aftercare mightincludehelpingttrechildto dealwith familyproblems, referring the child'smotherto the Homestead Job Creationproject,providing directschool support,familycounselling, applications for child-care grants,etc. 6. The Homestead ChildandYouthCareCentre: Whenfamilyreunification is notpossiblebecauseit is not in the child'sbestinterests, or the childrequiresongoingsupporl, the childis placed(aftera Children's CourtInquirythatdeclaresthe childto be in needof suchcart:)at The H;meste;d ChildandYouthCareCentre. The Homestead CYCCofferslong-term placement for up to 75 childrenin a brandnew, bright,childfriendlyfacilityin Khayelitsha staffedby socialworkersand childcareprofessionals. Here: ' Eachchildhasa CarePlandeveloped withthe aimtowardsfamilyreintegration, sometinres withanotherrelative. The ChildCareTeammakeshomevisitsto the familywiththe boyto helpmaintainsuchn:lationships as do exist and lotsof childrendo go homeforweekendsand overtheholidayperiodto maintainfamilyrelationships. 'Each childis encouraged to participate as partof The Homestead and localcommunity andto participate in extra muralactivities.The boysarealsoexpected to helpwithchores,playsport,developcommunity linksandlivea normallifeas possible.All the boysget pocketmoneyfor personalneedsand havetheirownspaceand lockers for privacyandto developtheirown individuality. 'Each childis educatedto the bestof theirabilityandthe available resources, andwhilesomechildrencontinue to attendLearnto Live,mostmoveon to formalschoolsin Khayelitsha or on to specialschoolsthatcan help overcome the child'sdevelopmental challenges. ' Eachchildalsohasan Individual Development Plandrawnup thatlooksat hisstrengths andweaknesses, and aimsto helpthe childovercome the damagedoneby histimeon the street.Heresocialworkservicesinclude groupand individual counselling and assisting withfamilyreconstruction andsettingtheseboysup for healthy independence oncetheyreach18 yearsof age. The HomesteadJob Creation Project: The Homestead looksholistically at the issueschildrenin our programmes face. Oftenthe coreproblemis familypoverty exacerbated by inexperienced, uneducated, unskilled and unemployable mothers,auntsandsistersof the children. The Homestead Job creationprojectsprovidea employment skillstrainingprojectfor thesewomenthatcreatesmuchneeded workexperience andgenerates a smallcashincomeso theycan providefor theirchildren's basicneeds.Thishelpsus to be betterableto reunitechildrenwiththeirfamilies.Specifically the Homestead provides: Job CreationProgramme ' Skillsin bead-work and hand-sewing producing a rangeof productsincluding bracelets, Christmas decorations and beadedbagsfor the conference, specialeventand brandedgoodsmarket.Soonwe hopeto openup The Homestead bakerythatwillprovideemployment skillscurrently in greatdemand. ' Realworkexperience in thoseparticipants who quicklylearnthatthe moretheyproducethemoretheywillearn. Thisincludeshavingto travelintothe cityfor workeachday (somehaveneverbeenintothe city), beingon time and presentable for work,actingas shopassistants (we haveour own retailoutlet)as wellas doingmarketing and sellingat fleamarkets,conferences andbusinesseswhichall add up to job skillexperience. ' Dueto the underprivileged and povertyrackednatureof the womenconcerned,it is necessaryto startwith the basicsof povertyrelief,foodand clothingandevenpersonalhygiene.lt is alsonecessary to supportnewmothers in the programmefor the firstfew weekswith dailytransportmoney. Sometimesit is unfortunately necessaryto investquiteextensively in settingthe womenup for a humanelife,including helpingthemto buildaccommodation (forinstancea waterproofshack). ' lmpactis easyto quantify.We workwith 35 mothersa year,representing a directimpacton 75 childrenand we assist5youngmenfromourchildren's homethrough thisprogramme eachyear. 31%of thewomenarereferred in by The Homestead Khayelitsha drop-incentre,51%fromThe Homestead Manenberg Drop-inCentreand 17% by The Homestead ChildandYouthCareCentre.Currently the momsand youngmenof thisprogramme produce overR305000 in salesperannum,of thatR170000 is cashinjecteddirectlyintotheirpockets. ' Participants havemovedon to becomelaundryworkers,officecleaners, workingfor the Oitymunicipality, a child

Ttle Homestead(Projectsfor StreetChildren) : 003-217) $lon-ProfltOrganisation Statements for the vearended31 March2013 AnnualFinancial

ManagementComrnittee'sReport and now designsOstrich her creativity careassistantandevena fulltime"houseexecutive".Onemomdiscovered Jewelleryandwomenstartto findthemselves, to believein theirabilitiesandto findtheirownway throughlife. The away,a year businesssaysit all:Initiallyworrieddirtywopen woulddrivetheircustomers reactionof neighbouring of thewomenthat one plans withthe reliability downthe linethesebusinesses are so impressed andconsistency to employ4 of ourmomsin theirnewkitchen.

Paul Director

Hooper

The Homestead(Projectsfor StreetChildren)

(Non-Profit Organisation : 003-217) AnnualFinancial Statements for the yearended31 March2013

Statementof FinancialPosition Fiiguresin Rand

Notes

2 0 13

2012

Assets Non-CurrentAssets plantandequipment Property, Otherfinancialassets

CurrentAssets Inventories Tradeand otherreceivables Cashandcashequivalents

4 5

Total Assets

14 946 138 3 411 531

4 225 462

1 8 3 5 80 6 9

4 22E 462

312 826 82 181 2 221 930

424 066 11 4 0 0 9 1 13 5 5 7 6 7

2 6 1 69 3 7

11 893 842

20 975 006

1 6 1 1 93 0 4

2 7 1 54 2 7 14 949 148

7 343 931 7 534 872

17 664 575

1 4 8 7 88 0 3

Equityand Liabilities Equity Projectreserves Retained surplus

Liabilities CurrentLiabilities Otherfinancial liabilities Tradeand otherpayables Total Equityand Liabilities

40 000 3 270 431

1 240 501

3 3 1 04 3 1

1 240 501

20 975006

1 6 1 1 93 0 4

The Homestead(Projectsfor StreetChildren)

(Non-Profit Organisation : 003-217) AnnualFinancial Statements for the yearended31 March2013

Statementof ComprehensiveIncome Figuresin Rand

Notes

Revenue Costof sales Gross profit Otherincome Operatingexpenses

12 ,l?

Operatingsurplus (deficit) Investmentrevenue Fairvalueadjustments NationalLotteryDistribution TrustFund(NLDTF) Financecosts Surplus (deficit)for the year Othercomprehensive income Total comprehensiveincome (loss)

14 15 16

2013

2012

304 572 ( 1 5 18 8 2 )

341939 (76508)

1 5 26 9 0 I 074229 (7 658723)

265 431 6 056 296 (6 e65 310)

1 5 6 81 9 6 222620 443 309 552't41 (4e4)

(643583) 600 209

2785772

1433741

2785 772

(43 3741

The Homestead for StreetGhildren) _(Pro_jects (Non-Profit Organisation : 003-217)

AnnualFinancial Statements for the yearended31 March2013

Statementof Changesin Equity Figuresin Rand Balanceat 01 April 2011 Changesin equity Totalcomprehensive incomefor the vear Transferto ProjectReserves Transferto incomerecievedin advance Totalchanges Balanceat 01 April 2012 Changesin equity Totalcomprehensive incomefor the vear Transferfrom ProjectReserves Totalchanges Balanceat 31 March2013 Note

Project Surpluses 8 3 1 86 0 7 (664362) ( 3 1 03 1 4 )

(e74676) 7 343931 (4 628 504) (4 628 504) 2715 427

Retained Surplus 6 9 1 38 8 4 (43 374) 664 362

Total equity 15 232 49'l (43 374) ( 3 1 03 1 4 )

620 988 7 534872 2785772 4 628 504 7 414276 14 949 148

(35368S) 14 878803 2 785 772_ 2 785 772 17 664 575

The Homestead for StreetChildren) -(Pro_jects

(Non-Profit Organisation : 003-21 7) AnnualFinancial Statements for the yearended31 March2013

Statementof Cash Flows Figuresin Rand

Notes

2013

2012

4 4 1 86 8 0 202 961 .19659 (4e4)

(8389e0) 600209

4,640 806

(2387811

Purchase plantandequipment of property, Netmovement of otherfinancial assets

( 1 08 4 6 1 2 3 ) (2 968 520)

(761 332)

Net cash from investingactivities

( 1 38 1 46 4 3 )

( 7 6 13 3 2 )

O,ashflows from operatingactivities Ciashgenerated/(used) in operations Interestincome Dividends received Financecosts

Net cash from operatingactivities Cash flows from investingactivities

Cash flows from financing activities Proceeds fromotherfinancialliability

40 000

Net cash from financingactivities

40 000

Total cash movementfor the year Cashat the beginning of the year

( 9 1 3 38 3 7 ) 1 13 5 5 7 6 7

Total cash at end ofthe year

2 221 930

( 10 0 0r 1 3 ) 12355880 11 355 767

The Homestead(Projectsfor StreetGhildren)

(Non-Profit Organisation : 003-21 7) AnnualFinancial Statements forthe yearended31 March2013

AccountingPolicies 1,, Presentationof Annual FinancialStatements -fhe annualfinancial statements havebeenpreparedin accordance with International Financial Reporting Standards, and the Fund-raising Act no 107of 1978.The annualfinancial statements havebeenpreparedon the fiistoricllcostbasis,and incorporate the principal policiesset out below.Theyare presented accounting in SouthAfricanRands. '1,.1 Significantjudgementsand sources of estimationuncertainty ln preparing the annualfinancialstatements, management is required to makeestimates and assumptions thataffectthe amountsrepresented in the annualfinancial statements and relateddisclosures. Useof available information andthe application of judgementis inherentin the formation of estimates. Actualresultsin the futurecoulddifferfromthese estimates whichmaybe materialto the annualfinancial judgements statements. Significant includr..: Trade receivables The organisation assessesitstradereceivables for impairment at the end of eachreporting period,ln determining whether an impairment lossshouldbe recordedin profitor loss,the organisation makesjudgementias to whetherthereis observabledata indicatinga measurabledecreasein the estimatedfuturecashflowsfrom a finanqialasser. Deferralof Income Management reviewsthe grantcontracts/ agreements / projectreportsand basedon theirreviewthey calculateincome rerceived in advance. 1.,2 Property,plantand equipment The costof an itemof property, plantandequipment is recognised ils an assetwhen: ' it is probable thatfutureeconomicbenefitsassociated withthe itemwillflowto the orqanisation: and . the costof the itemcan be measuredreliably. plantandequipment Property, is initially measuredat cost. plantandequipment Property, aredepreciated on the straightlinebasisovertheirexpectedusefullivesto theirestimated residual value. plantandequipment Property, is carriedat costlessaccumulated depreciation and any impairment losses. Item Land Buildings Leaseholdproperty Furniture andfixtures Motorvehicles Computer equipment

Averageuseful life Indefinite 5 0 - 1 0 0y e a r s 40 years 1 5y e a r s 6 - 7 years 5 years

The residual value,usefullifeanddepreciation methodof eachassetare reviewedatthe end of eeichreporting period.lf the expectations differfrompreviousestimates, the changeis accounted for as a changein accourrting estimate. The gainor lossarisingfromthe derecognition plantandequipment of an itemof property, is inclurjed in profitor losswhen the itemis derecognised. The gainor lossarisingfromthe derecognition plernt of an itemof property, andequipment is determined as the difference betweenthe netdisposalproceeds, if any,andthe carryingamountof the item.

The Homestead(Projectsfor StreetChildren)

(Non-Profit Organisation : 003-217) AnnualFinancial Statements for the yearended31 March20.13

AccountingPolicies 'f.3 Financialinstruments Initialrecognitionand measurement The organisation classifies financialinstruments, or theircomponent parts,on initialrecognition as a financialasset,a financial liability or an equityinstrument in accordance withthe substance of the contractialarrangement. Financial instruments are recognised initially whenthe organisation becomesa partyto the contraq;tual provisions of the instruments. Tradeand other receivables Tradereceivables aremeasuredat initialrecognition at fairvalue,andaresubsequently measuredat amortised costusing the effectiveinterestratemethod.Appropriateallowancesfor estimatedirrecoverable amountsare recognisedin profitor losswhenthereis objective evidence thatthe assetis impaired. Significant financial difficulties probability of tlrede-btor, that the debtorwillenterbankruptcy or financial reorganisation, anddefaultor delinquency in payments(morethan30 days overdue)are consideredindicatorsthat the tradereceivableis impaired.The allowancerecognisedi is measuredas the differencebetweenthe asset'scarryingamountand the presentvalueof estimatedfuturecaih flovysdiscountedat the effectiveinterestratecomputedat initialrecognition. Tradeand otherreceivables are classifiedas loansand receivables. Tradeand other payables Tradepayablesare initially measured at fairvalue,andaresubsequently measuredat amoftised c,)st,usingthe effective interestratemethod. Cashand cash equivalents Cashandcashequivalents comprise cashon handanddemanddeposits, andothershort-term highlyliquidinvestments thatare readilyconvertible to a knownamountof cashandare subjectto an insignificant riskof chi:ngesin value.These are initially andsubsequently recorded at fairvalue. 1.4 Leases A leaseis classified as a financeleaseif it transfers substantially allthe risksand rewardsincidental to ownership. A lease is classified as an operating leaseif it doesnottransfersubstantially all the risksand rewardsincid,ental to owneiship. Operatingleases- lessee Operating leasepayments are recognised as an expenseon a straight-line basisovertheleaseterm.The difference betweenthe amountsrecognisedas an expenseand the contractualpaymentsare recognisedas ianoperatingleaseasset. Thisliabilityis notdiscounted. Any contingent rentsareexpensedin the periodtheyare incurred. 1.5 Inventories Inventories are measured at the lowerof costand netrealisable value. Netrealisable valueis the estimated sellingpricein the ordinarycourseof businesslessthe estimated costsof completion andthe estimated costsnecessary to makethe sale. The costof inventories comprisesof all costsof purchase,costsof conversionand othercostsincurredin bringingthe inventories to theirpresentlocationand condition. The costof inventories is assignedusingthe weightedaveragecostformula.The samecostformulais usedfor all inventories havinga similarnatureand useto the entity.

The Homestead(Projectsfor StreetGhildren)

(Non-Profit Organisation : 003-21 7) AnnualFinancial Statements for the yearended31 March2013

AccountingPolicies 1.5 Inventories(continued) Wheninventories aresold,the carryingamountof thoseinventories are recognised as an expensâ&#x201A;Źi in the periodin which the relatedrevenueis recognised. The amountof anywrite-down of inventories to net realisable valueandall lossesof inventories are recognisedas an expensein the periodthe write-dclwn or loss occurs.The amountof any reversalof any write-down of inventories, arisingfroman increasein netrealisable value,are recognised as a reduction in the amountof inventories recognised as an expensein the periodin whichthe reversaloccurs. 1,6 lmpairmentof assets The organisation assessesat eachbalancesheetdatewhether.there is any indication thatan assetmay be impaired. lf any suchindication exists,the organisation estimates the recoverable amountof the asset. lf thereis any indication thatan assetmay be impaired, the recoverable amountis estimated for the individual asset.lf it is notpossibleto estimatethe recoverable amountof the individual asset,the.recoverable amountof the cash-generating unit to whichthe assetbelongsis determined. The recoverable amouniof an assetor a cash-generating unitis the higherof itsfairvaluelesscoststo selland itsvaluein I IGA lf the recoverable amountof an assetis lessthanits carrying - amount,the carryingamountof the assetis reducedto its recoverable amount.Thatreduction is an impairment loss. An impairment lossof assetscarriedat costlessanyaccumulated depreciation or amortisation is recognised immediately in profitor loss. The increased caffyingamountof an assetattributable to a reversalof an impairment lossdoesnotexceedthe carrying arnountthatwouldhavebeendetermined hadno impairment lossbeenrecognised for the assetin priorperiods. A reversalof an impairment lossof assetscarriedat costlessaccumulated depreciation or amortisation is recognised immediately in profitor loss. 1.7 Sharecapitaland equity An equityinstrumentis any contractthat evidencesa residualinterestin the assetsof an entityafterrdeductingall of its liabilities. 1.8 Governmentgrants grantsare recognised Government whenthereis reasonable assurance that: . the organisation willcomplywiththe conditions attaching to them;and . the grantswill be received. Governmentgrantsare recognisedas incomeoverthe periodsnecessaryto matchthemwith the rr:latedcoststhatthey are intended to compensate. A government grantthatbecomesreceivable as compensation for expensesor lossesalreadyincurredor for the purpose of givingimmediatefinancialsupportto the entitywith no futurerelatedcostsis recognised in"o,r'" of the periodin which it becomesreceivable. "s grantsrelatedto assets,including Government non-monetary grantsat fairvalue,are presented in the statement of positionby settingup the grantas deferredincomeoiby deducting financial the grantin arrivingat the carryrng amountof the asset. Grantsrelatedto incomeare presentedas a creditin the profitor loss(separately).

The Homestead(Pro-jects for StreetChildren)

(Non-Profi t Organisation : 003-217\ AnnualFinancial Statements for the yearended31 March20i 3

AccountingPolicies 1.9 Revenue Revenuefromthe saleof goodsis recognised whenallthe following conditions havebeensatisfied: ' the organisation hastransferred to the buyerthesignificJnt risksand rewardsof owners;hip of the goods; ' the organisation retainsneithercontinuing manageiial involvement to the degreeusualliy associated with ownershipnor effectivecontroloverthe goodssold; . the amountof revenuecanbe measuredreliablv: ' it is probable thatthe economicbenefitsassociitedwiththe transaction willflowto the organisation; and ' the costsincurredorto be incurredin respectof the transactioncan be measuredreliablyi Revenueis measuredat the fairvalueof the consideration receivedor receivable and represents the amountsreceivable for goodsandservicesprovidedin the normalcourseof business, netoltradediscounts andvolurnerebates,andvalue addedtax. Interestis recognised, in profitor loss,usingthe effectiveinterestratemethoo. Dividends are recognised, in profitor loss,whenthe organisation's rightto receivepaymenthas

beren established.

Grantsare recognisedas incomeoverthe periodsnecessaryto matchthemwiththe related coststhatthey are intendedto compensate. Donations andsubsidies are recognised in profitand losswhenthe organisation's rightto receivepaymenthasbeen esitablished. 1.10 Cost of sales when inventories aresold,the carryingamountof thoseinventories is recognised as an expenseirrthe periodin whichthe relatedrevenueis recognised. The amountof anywrite-down of inventories to net realisable valueandall lossesof inventories are recognisedas an expensein the periodthe write-downor lossoccurs.The amountof any reversal of any write-down of inventories, arisingfroman increasein net realisable value,is recognised as a reducrtion in the amountof inventoriesrecognisedas an expensein the periodin whichthe reversaloccurs.

The Homestead(Projectsfor StreetGhildren)

(Non-Profit Organisation : 003-217 \ AnnualFinancial Statements for the yearended31 March2013

Notesto the Annual FinancialStatements Figuresin Rand 2.

:2013

2012

Propefty,plantand equipment 2013

Cost Buildings Furniture andfixtures l1-equipment Leasehold property Motorvehicles Total

1 3 3 5 38 6 5 76595'l 135 226 1 062 529 663 945 1 5 9 8 15 1 6

2012

AccumulatedCarryingvalue depreciation (6255e) 1 32 9 13 0 6 ( 3 1 78 7 6 ) 448 075 ( 1 1 56 1 9 ) 1 96 0 7 ( 3 3 09 1 9 ) 7 3 16 1 0 (208405) 455 540 (1 035 378) 14 946 138

Cost 2 739 456 5 3 88 10 130754 1 062 529 663 945 5 135494

AccumulatedCarryingvalue depreciation (577e7) (295940) (108726) (2e0623) ( 1 5 69 4 6 ) ( 9 1 00 3 2 )

2 6 8 16 5 9 242 870 zl vz6

771 906 506999 4 225 462

Reconciliation of property,plantand equipment- 2013

Buildings Furniture andfixtures 11-equipment Leaseholdproperty Motorvehicles

Opening balance 2 6 8 16 5 9 242 870 22 028 771 906 506 999 4225462

Additions 1 0 6 1 44 0 9 2 2 54 7 3 6 241

10846123

Depreciation

Total

(4 762) 1 3 2 9 13 0 6 (20 268) 448 075 (8 662) 1 96 0 7 (40 2s6) 7 3 16 1 0 (5145e) 455 540 (1254471 14 946 138

Reconciliation of property,plantand equipment- 2012

Buildings Furniture andfixtures lT'equipment Leaseholdproperty Motorvehicles

Opening balance 1 950 095 246 528 22 858 812 201 558458 3 590 140

Additions 736 890 1 66 1 0 7 832

761 332

Depreciation (5 326) (20 268) (8 662) (402e5) ( 5 14 5 9 ) (126010)

Total 2 6 8 16 5 9 242 870 22 028 771 906 506999 4 225 462

The Homestead(Projectsfor StreetChildren)

(Non-Profit Organisation : 003-217 ) AnnualFinancial Statements for the yearended31 March2013

Notesto the AnnualFinancialStatements Figuresin Rand

it013

2012

2,, Property,plant and equipment(continued) Detailsof properties Erf 702,Strand Street,CapeTown - Purchase price:6 August1999: - Land - Building

148810 475 396

1 4 88 ' 1 0 475 396

624 206

20 000

125 970 1 2 5 8 36 8 8

125 970 1 969280

1 2 7 0 96 5 8

2 095250

Elf 41383,MitchellsPlain - Purchase price:3 January2005: - Land

Erf 69521,Khayelitsha - Purchase price:25 July2008: - Land - Capitalised expenditure (Building)

Otherfinancialassets

At fair valuethrough profit or loss - designated portfolio Stanlibinvestment The Homestead(Projectsfor street children)holdsa classicinvestmentplan withStanlib.

Inventories

goods Finished Riewmaterials Work in progress

3 411 931

1 0 59 3 6 102 870 104 020

1 0 11 3 8 80 877 242 051

312 826

424 066

7 088 13 491

47 897 1 37 1 1 52 401

Tradeand other receivables

AccruedIncome Staffloans Tradereceivables

o I ouz

82 181 Mianagement considersthe carryingamountof tradeand otherreceivables to approximateits fairvialue.

1 1 40 0 9

The Homestead(Projectsfor StreetChildren)

(Non-Profit Organisation : 003-217) AnnualFinancial Statements for the yearended31 March2013

Notesto the Annual FinancialStatements Figuresin Rand 6.

2013

2012

Cashand cash equivalents

Cashandcashequivalents consistof: Bankbalances Cashon hand

2 200 503 21 427

11 336 696 1 90 7 1

2221 930

11 355 767

credit qualityof cash at bankand short term deposits,excludingcash on hand The creditqualityof cashat bankandshorttermdeposits, excluding cashon handthatare neitherpastdue norimpaired can be assessedby referenceto externalcreditratings(if availablelorhistoricalinformationaboutcounterparty deiault rates: Gredit rating ABSABankLimited- A (Stable) StandardBank- A (Stable) - A (Stable) Prudential Stanlib- A (Stable)

449 628 1 376 738 3 5 29 1 9 21 218 2 200 503

262 402 60118 5 514 176 5 500 000 1 1 3 3 66 9 6

The Homestead(Projectsfor StreetChildren)

(Non-Profit Organisation . 003-217) AnnualFinancial Statements for the yearended31 March20.13

Notesto the Annual FinancialStatements Figuresin Rand 7,,

,1013

2012

Project Reserves

Futureprojectsreserve Childcareworkersreserve Foodandclothingreserve A p r i l2 0 1 0F u n d

z o5Y bbc

75 762

2 715427

7 268 169

,urur__

7 343 931

RetainedSurplus At beginning of the year Surplus(Shortfall) for the year Transferfrom/(to) Futureprojectsreserve Transferfrom/(to)Childcareworkerreserve

7,534,872 \2,797,290) 4,628,504

6,913,884 (43,376) 655,326 o n?R

14,960,664

7,534,872

Future projects reserve The Homestead is in the processof buildinga children's homeon the propertyrecentlyacquiredin Khayelitsha. These fundsare reserved towardsthe costsof the construction of the children's homeandthe expansion of earlvintervention. outreachand preventionprogrammes. At beginning of the year Utilisationof reserve Transferfrom retainedsurolus

7,268,169 (4,628,503)

7,923,495 (1,006,583) SCt,ZCt

2,640,230

7,268,169

Child care workers reserve Thesefundsare reserved to coverthecostsof providing accredited trainingin childandyouthcarer to all of the organisation's childcarestaff. At the beginning of the year Utilisationof reserve

75,762

84,800 (e,038)

75,762

Food and clothingreserve Thesefundsare reserved to purchase foodand clothingparcelsforthechildrenof The Homesteacl. At the beginning of the year Utilisation of reserve

92,416 G2,416\

32,416 (32,416) 32,416

The Homestead(Pro_jects for StreetChildren)

(Non-Profit Organisation i OO3-217\ AnnualFinancial Statements for the yearended31 March2013

Notesto the Annual FinancialStatements Figuresin Rand

2013

2012

7., Project Reserves(continued) A p r i l2 0 1 0F u n d Thesefundsare reservedto buildup one storeyat the shelterto create a largerecreationroomand a privatecounsellingspacefor the socialworker. At beginning of the year Reclassification to IncomeReceivedin Advance

Otherfinancialliabilities

Heldat amortisedcost HansKatoen The loanis interestfree,unsecured and has no repayment terms. Currentliabilities At amortisedcost 9.

277,896 (277,896)

40 000

Tradeand other payables

Accruedleavepay Incomereceivedin advance Otheraccruals Tradepayables VAT

137 230 2 3 3 01 5 6 176841 623 128 3 076

1 4 66 0 1 970 164 49 112 23 030 51 594

3 270 431

1 240 501

Management considers the carryingamountsof tradeand otherpayables to approximate its fairvalue.

The Homestead(Projectsfor StreetChildren)

(Non-Profit Organisation : 003-21 7) AnnualFinancial Statements for the yearended31 March20.13

Notesto the AnnualFinancialStatements Figuresin Rand

t2013

2012

10. Financialassetsby category The accounting policiesfor financialinstruments havebeenappliedto the lineitemsbelow.The arnounts includedbelowdo not necessarily agreeto the amountson the statement position. of financial Any differences aredueto the amountsbelow onlyrelating to financial instruments andtherefore any non-financial instruments havebeenexclucled. The Management Committee are of the opinionthatthe carryingvalueof the financial assetsapproximate theirfairvalue. 2013 L o a n sa n d Fairvalue receivables throughprofit or lossdesrignated 2224 808 3i411 931 82 181

Cashand cashequivalents Otherfinancial assets Tradeandotherreceivables

2 306989

3 14 1 19 3 1

Total

2 224 808 3 4 1 19 3 1 82 181 5 718 920

2012 Loerns and receivables 1 13 5 5 7 6 7 11 4 0 0 9

Cashand cashequivalents Tradeand otherreceivables

11 469776

Total 11355767 11 4 0 0 9 'tl 469776

1'1. Financialliabilitiesby category The accounting policiesfor financialinstruments havebeenappliedto the lineitemsbelow.The anrounts includedbelowdo not necessarily agreeto the amountson the statement position. of financial Any differences are dueto the amountsbelow onlyrelating to financialinstruments andtherefore any non-financial instruments havebeenexcluded. The Management Committee are of the opinionthatthecarryingvalueof the financial liabilities apprroximate theirfairvalue. 2013

Incomerecievedin advance Tradeandotherpayables

Financial liabilities at anrortisedcost 2 3 3 01 5 6 937 201

2 3 3 01 5 6 937 201

3 267 357

Total

20'12 Financial liabilities at anrortisedcost 970 164 218742

Incomerecievedin advance 'l'rade and otherpayables

1 1 8 89 0 6

Total 970 164 218742 ,t 188906

12. Revenue Saleof goods

304 572 24

341939

The Homestead(Projectsfor StreetChildren)

(Non-Profit Organisation . 003-217\ AnnualFinancial Statements forthe yearended31 March2013

Notesto the Annual FinancialStatements Figuresin Rand

,2013

2012

13. Cost of sales Saleof goods Costof goodssold

151 882

76 508

14, Investmentrevenue Dividendrevenue Otherfinancial assets- Local

1 96 5 9

lnterestrevenue Bank

202 961

600 209

222620

600 209

15. Fairvalueadjustments Otherfinancial assets

443 309

16. NationalLotteryDistributionTrust Fund (NLDTF) Fundingreceived

552 141

17. Taxation The Homestead (Projects for StreetChildren) hasbeenapproved as a publicbenefitorganisation in termsof section30 of the IncomeTax Act. The organisation's receiptsand accrualsare thereforeexemptfrom incometax in termsof section10 (1)(cN)of theAct,andas a resultno provision hasbeenmadefor incometax. 18. Cash(usedin) generatedfrom operations Profitbeforetaxation Adjustmentsfor:

27BS 772

f l oEnp r arnsi e a lfi q n nl r v r u

125 345

Dividends received fnterestreceived Financecosts Fairvalueadjustments Movement in ProjectReserves Changesin workingcapital: fnventories Tradeandotherreceivables Tradeandotherpayables

(19659) eo2 961) 494 (443309)

U3 374\ 120 011

(600209) (310312)

111'240 31 g2g 2.029930 4 418 680

(234 6A2) (S11gi) iZqZSZ (838990)

19. Commitments Operatingleases- as lessee(expense) llJllinimum lease paymentsdue - withinonevear

66 080

Operatingleasepaymentsrepresented rentalspayableby the organisation prroperty. for the Elukhuselweni The leasewas negotiated for an averageterm of threeyearsand rentalsare fixedfor an averageof threeyears.T'heleasecameto an end in the currentyear.No contingent rentis payable.

The Homestead(Projectsfor StreetChildren)

(Non-Profit Organisation : 003-217 ) AnnualFinancial Statements for the yearended31 March2013

Notesto the Annual FinancialStatements Figuresin Rand

2013

2012

20. Risk management Liquidityrisk Prudentliquidity riskmanagement impllesmaintaining sufficient cashand marketable securities, threavailability of funding throughan adequateamountof committed creditfacilities andthe abilityto closeout marketpositions. Dueto the dynamic nature.of the underlying projects, organisation treasurymaintains flexioitity in fundingby maintaininrg availability under committed creditlines. The organisation's riskto liquidity is a resultof the fundsavailable to coverfuturecommitments. Tfreorganisation manages liquidity riskthroughan ongoingreviewof futurecommitments andcreditfacilities. At 31 March2013 Otherfinancial liabilities Tradeand otherpayables At 31 March2012 Tradeandotherpayables

Lessthan 1 year 40 000 3 270 432

Between1 and 2 years

Betwelen 2 and 5 years

Over5 years

Lessthan 1 year 1 240 501

Between1 and 2years

Betweren 2 and Syears

Over5 Vears

Creditrisk Creditriskconsistsmainlyof cashdeposits, cashequivalents, derivative financialinstruments andtradedebtors.The organisation onlydepositscashwithmajorbankswithhighqualitycreditstandingandlimitsexposure ro any onecounterparty. Tradereceivables comprise a widespread customer base.Management evaluated creditriskrelating ro customers on an ongoingbasis.lf customers are independently rated,theseratinglare used.Otherwise, if thereis n6 independent rating, riskcontrolassessesthe creditqualityof the customer,takinginio .rccountits financialposition,pastexperienceand ot-her factors'Individual risklimitsare set basedon internalor exteinalratingsin accordance wittrtimitiset bythe board.The utilisation of creditlimitsis regularly monitored. Salesto retailcustomers aresettledin cashor usingmijor creditcards. Creditguarantee insurance is purchased whendeemedappropriate. Financialassetsexposedto creditriskat yearend were as follows: Financialinstrument StandardBank- CurrentAccount ABSA- CallAccount AIISA - CurrentAccount Prudential Portfolio Managers UnitTrustLtd(ppM)- MoneyMarketFund Stanlib- Investment Account TradeandOtherReceivables

2013 1 376 738 9 33 1 8 263 811 3 5 29 1 9 21 218 82 181

2012 60118 2 481 259 921 5 514 176 5 500 000 11 4 0 0 9

21. Gontingencies In October2012,the entity.movedintothe new premises.At the time of the movetherewas no eler;tricity meteron the premises.At the date of this report,thereis stillno meterpresentdespitenumerousattemptsto nortifyEikom to correct this'No electricity expensehastherefore beenrecognised sincethisperiodas thereis no way of erstimating thisamount dueto no meterbeingpresent.

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