Homestead Audited Financial Statements 2015

The Homestead (Projects for Street Children) (Registration number Non-Profit Organisation: 003-217)

Annual Financial Statements for the year ended 31 March 2015

The Homestead (Projects for Street Children) (Regisiraiion number Non-Profit Organisation: 003-217) Annual Financial Siatements for the year ended 31 March 2015

General lnformation Country of incorporation and

domicile

Nature of business and principal Management

activities

Committee

Souih Africa Projects for street children Stuart Hendry (Chairperson) Tshepo Mociise Harvey (],/iceChairoerson) Zaitoon Abeci (Treasurer) Amori Borman (Secretary) Vash Mungal - Singh Phouzaan Siebritz Sammy Wiliiams

Management

Staff

Paul Vernon Hooper (Director) Charmaine Germishuvs Lindani Mzamo Ntombizanele Sokupa Annie van Wyk

Organisation

address

150 Strand Street Cape Town 800'1

Postal

address

PO Box 21538 Kloof Street 8008

Auditors

Grant Thornton Cape Chariered Accountants

(S -A. )

Registered Audiiors Grant Thornton South Africa is a member firm of Grant Thornton lnternational Ltd

Organisation registration Level of

assurance

number

Non-Profit Organisation: 003-217 These annual financial statements have been audited voluntarily, as determined by management, in compliance with the applicable requirements of the Companies Act of South Africa.

Preparer

The annual financial statements were independently compiled by: L Hashim Chartered Accountani f S.A.)

Published

31 Auoust 2015

The Homestead (Projects for Street Children)

(Registration number Non-Profit Organisation: 003-217) Annual Financial Statements for the year ended 3,1 March 2015

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

lndex

paoe

lnciependent Audiiors' Report

3-4

Management Committee's Responsibiliiies and Approval Management Committee's Report Statement of Financial Posiiion

5

6-8

I

Statemeni of Comprehensive Income

10

Statement of Changes in Equity

11

Statement of Cash Flows Accounting Policies

JJ - IO

Notes to the Annual Financial Statements

17-23

The following supplemeniary information does not form part of the annual financial statements and is unaudited: Detailed Statement of Financial Performance

24-26

'GrantThornton An instinct for growth

Chartered Accountants (SA) Granl Thornton Cape.

60 Floor, Grant Thornton House 123 Het1zog Boulevard, Fofeshore Cape Town 8001

PO \ox2275, Cape Town, 8000 Dx 158 Cape Town T +27 (0)21 417 8800 F +27 (0)21 417 8700 wwwg,t.co.za

Independent Auditors' Report To the Management committee of rhe Homestead (projects for Street children)

we have audited the financial statements^of-Th:,1?T:r,:"1-(floj,ects for street children) set out on pages g to comprise the staiement of financial position 23, which as at 31 March zdt 5,'the statement of iln"n.iue income, the staiement of

:::i3ru;:;:?J.t5.=3,f;.#*"i,.#,"#i#jil;;;;'fi;;"Jnded,and

"orf the n"t",,'"5.."',p.i,i"s a summary of sisnincant

Managements' Responsibirity for the A,nnuar Financiar statements The organisation's management committee. is responsible for the preparation and fair presentation of ihese financial staiements in accordanc! with lntemational Frnancial n"portinj st"ndards, and ,"qriLn..,"ni, of the companies Act of south Africa' and for such iniernal control as ttt" t"""g;"iJ"r#ittJ. o"termine is necessary to enabre the preparation financial statements that are free from material of missiatements, whether due io fraud or error A

uditors, Responsibility

our responsib.ility is to exPress an opinion on these financial staiements based on our audit. we conducted our audit in accordance with International Standards on Audiiing. Those stanJards require tnat we with ethicar requirements and plan and perform the audit io obtain reasonable asJurance whether the financiar statementJare ""rpr,, free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements The procedures selected depelu.gn tng auditors'iudgement, including ttre asiessmentof misstatement of the financial staiements, whether the risks of material due to fraud or-"rror. In making those risk assessments, considers internal control relevant io the the auditor entity's preparation presentatiorioi:ti," r"i,. nn.*irl auditprocedures that are appropriate in "nonotfor.the.purpos6 of expressing statements in order to design the circumstances, bul an opinion on the effectiveness of the entity's inteinal control.

An audit atso inctuoes evaruating itr" of accounting policies useo of accounting estimates made by managlment, as "pprop?i"t*ess weil as evaluating the overalt presentation ;|,jJH':ff:f"?eness of the

partners

we believe that the audit evidence we have obtained

opinion.

is sufficient and appropriate to provide a basis for our qualified audit

Lr.H. Abbas

M J. Setls K.M Boman s. F. ciilie J.G. Glass hl. Hanekom i. Has\im D. Honeybal B.

Jacksoi

H.C. Kilian B.J. Ledewyk F. Mo[amed

J

[r1. Nield

H.J. Salmon

LM Scotl (Manaoing) N. L Strybis B.

Y. M

var

cier Walt

\ryeaveFsasman \Mllinotl

S

Audil .Tax .Advisory Gonl Thornlon Cap:

rs a

nember of Grani Thcnlon Soulh

Afris which ii tum

is a membef ol

GEni Thomton Inlemalional

Ltc

Independent Aud itors' Report Basis for Qualified Ooinion In common with similar organisations, it is not feasible for the organisation to insiitute accounting controls over cash collections from donations prior to initial entry of the coliections and bequesis in the accountrng records. Accordingly, it was impracticable for us to exiend our examination beyond ihe receipts actuallv recorded

Qualified Opinion In our opinion, except for the possible effects of the matter described in the Basis for eualified opinion paragraph, the financial statements presentfairly, in all material respects, the financial position of The Homesteaci (projects torbiru"tchildren) as at 31 March 2015, and its financial performance and cash flows for the year then ended in accordance with lnternaiional Financial -south Reporiing standards, and the requirements of the companies Act of Africa.

Supplementaty inf ormation

we draw your attention

to the faci that the supplementary information set out on pages 24 to 26 does not form part of the financial staiements and is presented as additional information, We have not audiied this informaiion and accordingly do not express an opinion thereon.

LzRn\

-[l^o1nF",

" 6*i-

Grant Thornton Cape Chartered Accountants (S.A.) Registered Auditors

Per: lmtiaaz Hashim Chartered Accountant (S.A.) Registered Auditor

31

August 2015

Cape Town

The Homestead (Projects for Street Children)

(Registration number Non-Profit Organisation: OO3-217) Annual Financial Statements for the year ended 31 March 2015

Management committee's Responsibilities and Approval The Management committee is required in terms of the Companies Act 71 ot2o0Bto maintain adequate accounting records and is responsible for the..content and integrity of the financial statements and related financial information included in this report lt is their responsibility to ensure that the financial statements fairly present the state of affairs of ihe company as at the end of the financial year and the results of its operations and cash ilows for the perioo tren ended, in conforrnity with lnternational Financial Reporting Standards. The external auditors are engaged to express an independent opinion on the

financial statements.

The financial statements are prepared in accordance with lnternational Financial Reporting standards and are based upon appropriate accounting policies consistently applied and supported by reasonable and prudeit judgments and estimates.

The Management Committee acknowledge that they are ultimately responsible for the system of internal financial control established by the company and place considerable importan"u on maintaining a strong control environment. To enable the Management Committee to meet these responsibilities, ihe M"nagerent Committee sets standards for internal control aimeo at reducing the risk of error or loss in a cost effective manner. The standards include the proper delegation cf responsibilities

within

a

clearly defined framework, effective accounting procedures and adequate segregation of duties

to ensure

an

acceptable level of risk' These controls are monitored throughout the company and all ernpl-oyles are required to maintain the highest ethical standards in ensuring the company's busineJs is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk managemenf in the company is on identifying, assessing, managing and monitoring all known forms of risk across the company. while operating risk cannot be fully etimiiiteo, tne cJmfany endeavours to minimrse it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints.

The Management Committee is 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 may be refed on ior the pieparation of the financial statements. However, any system of internal financial control can provide only reasonable, and not absolure,

assurance against material misstatement or loss.

The Management Committee has reviewed the company's cash flow forecast for the year to 31 March 2016 and, in the light of this review and the current financial position, they are satisfied that the company has or has access to adequate resources to continue in operational existence for the foreseeable future.

The external auditors are responsible for independently reviewing and reporting on the company's financial statements. Tne is presented on

financial statements have been examined by the organisatio-n's's exlernal-auditors and their report pages 3 to 4.

-t1"fl:::::l:-t^"1:l^":F:,"1?11?::^ls-"s 6,to 28, which. hav.e

Paul Vernon Hooper

been prepared on the soins concern basis, were approved oy

The Homestead (Projects for Street Children) (Registraiion number Non-Profit Organisation: 003-217) Annual Financial Statements for the year ended 3'1 March 2015

Management Committee's Report The Management Committee submit their report for the year ended 31 March 2015.

1.

Review of activities

Main business and operations

The organisation is engaged in programmes for skeet children and operates in South Africa.The financial statements incorporate all five programmes: 1) The Homestead, an intake for sireet children in the central city.

2) Yizani, a drop-in centre in Cape Town.

3) Child and Youth Care Cenire, a second stage unit for the more settled children.

4) Job Creation, a skills training and poveriy alleviaiion programme.

5) Community Outreach Programme, early interveniion in Khayeliisha, Manenberg and Valhalla Park.

The operating results and state of affairs of the organisation are fully set out in the attached annual financial statemenis and do not in our opinion require any further comment.

2.

Going concern

The financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and ihat the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.

3. ihe

Events after the reporting period Management Commiitee is not aware of any matter or circumstance arising since the end of the financial year that wculd

haveamaterial effectontheannual financial statemenisfortheyearended3l

4.

March20'1 5.

ManagementCommittee

The Management Committee of the organisation during the year and to the date of this report are as follows:

Management

Committee

Position

Stuad Hendry Tshepo lv'lodrse Harvey Zaitoon Abed Amori Borman Nontwenhle Mchunu Vash Mungal- Singh Phouzaan SiebriE Sammy Williams

Chairperson Vice- Chairperson Treasurer Secreiary

Management

Staff Hooper Ntombizanele Sokupa Annie van Wyk Lindani Mzamo Charmaine Germishuys

Position

Paul Vernon

Director Social Worker Job Creations and Operations Manager Accounts Manager Unit Manager Intake Shelter

5.

Changes

Resigneci 01 April 2014

Auditors

Grant Thornton Cape will continue in office in accordance with the Companies Act of South Africa.

The Homestead (Projects for Street Children) (Registration number Non-Profit Organisaiion : OO3-217) Annual Financial Statements for the year ended 31 March 2015

Management Comm ittee's Report 6.

Director's Report

The Homestead is most grateful to our donors and supporters, who collectively ensure The Homestead remains financial stable

and able io fulfil its mandate to get and keep children off the street. While each and every contribution is key to the Homestead's success, and acknowledged in our annual report, the following major donors remain the backbone of The Homestead:

. . . . r . ' . '

The Department of Social Development - Western Cape - R4 937 021 Action for Street Kids - R216 588 Red Het Talent - R 127 775 Wings of Support - R620 534 (restricted for Hans Katoen Pavilion) Goldman Sachs - R266 648 Nedbank Private Wealth - R150 000 Charles Eijxleboom, Rene Parent and friends (reflected mostly in the previous financial year) towards the refurbish of intake shelter dormitories and bathi-ooms.

The Rolf Stephan Nussbaum Foundation - new 7 seater vehicle Amori and Johans Borman sponsorship fund (The Homestead Investec account)

The audited financial statements show a small operaiional surplus of R123 504, after accouniing for capital expenses amounting to R959 150, and restricted funding received for specific projects but not yet completed of R673 584. Income recelved in advance refers to income received from the Department of Social Development for the first quarter of the next financial year. The Homestead's financial position therefore remains stable, on budget and continues to reflect tight frscal ciiscipiine and budgeting. Here it is important to note thai:

'

Capitel expensees include leasehoid lmprovements of R506, 676 for the building of a new soccer field at our children's home and the refurbishment of The Homestead lntake shelter dormitories and bathrooms; R 336,340

spent on a new vehicles forthe safe transport of children and staff; and R116, 134 spent on furniture and equipment (including on new beds and lockers for the children at the iniake shelter). To improve the therapeuiic and healing environrnent the Homestead moved away from using old 2nd hand furniture and purchased robust. child friendly and purpose built new furniture. We are most grateful for these changes that have improved the lives of the children substaniially.

'

Restricted funding includes the money received from Wings of suppori to build the Hans Katoen Pavilion during the next financral year. This will convert the underutilized middle cottage of our children's home to include a muliimedia room with computers and library (as well as study areas), an emergency placement dormitory, sick bay, therapy room, arts and crafts roorn and a central communal space, all of which will also serve the wider Khayelitsha communiiy. Resiricted funding also includes money from Eijkleboom towards the continued refurbishment of the intake shelter kitchen, lounge, dining room (including new sickbay), changes required for the continued registration of this facility with the Department of Social Development. These changes need to happen during the 201512016 financial year and will total well over R'1 million.

'

Operating expenses for the year under review were slightly down on the previous year, an extraordinary achievement with reduced administration costs more than compensating for increased programme expenditure, including increased food, budget and education costs. Thrs means we spent less on admin and more on the children, savings possible due to the continued introduction of tighter, more modern contrcls and efficiencies. The Homestead residential pfogfamme for instance worked with 166 different boys over the year with an 80% success rate, while The Homestead Early lntervention and Prevention programmes provided nearly 9000 meals to chiidren in Valhalla Park and wcrked with more than 300 chronically neglected children a week in skeet children communiiies of ongln.

The Homestead (projects for Street Children)

(Registration number Non-profit Organisation: OOZ_217) Annuat Financiat Statemenis for the-year ;;;; 3; ivlarch 2015

llngg"rnent '

Comm ittee,s Report

Sponsorship education fund, thanks to the hard work of Amori Borman and her friends, The Homestead education fund increased-because' while we spent over R350 000 on uor."tion dur-ing the tast iinancrar year, matrlc passes' fundraising efforts by Amori including two more tran compenJJi tn" in this regard, hence the increase in this fund and ensuring the Homeitead can continue to educate the children ""p"n.es

in our care.

Looking forward rhe Homesiead must meet growing. regulatory compriance costs, as well as increased costs needed to deepen and expand services"to staff and programme mlet growing Semands ior our programmes. The Homestead to update and improve its fa-ciliiies, to develop has to continue its splcialiseo-progr"rr"r, to upgrio. its fire, and safety systems, and train and professionalise its child *oik"rr. 'rne Homest"e"J r"r"iri iriancialy ,t"ti"hearth lnulocused,

:f::i|:

e

ready for the ahead but siill reliant on ""r" its donors and funders, rrrr"""guru"t'Commtttee, volunieers and staff for its continued

{

\,

t

o"'t

6::- -

Paul Vernon Hoopei

Director

The Homestead (projects for Street Children) - ""-'-"/

(Regisiration number Non-profit O-rganisation: OOI-zlii Annual Financial Staiemenis for the-year enO"J Sf March 2015

Statement of Financiaf position Figures in Rand

Notes

2015

2014

Assets Non-Current Assets Property, olant and equipment Other financial assets

15 276 872

14 692 020

7 731 115

6311963

23 0A7 987

21 003 983

387 854 31 700 678 561

297 5i5

Current Assets Inventories

Trade and other receivables Cash and cash equivalenis

5 6

1 098 115

Total Assets

194 778 437 257 929 5s0

r""

24 106 102

2,t o??

75 198 21 692 937

75 198 19 917 643

Equity and Liabilities Equity Reserves Retained surplus

21 768

135

19 992 841

t-iabilities Current Liabilities Other fi nancial liabilities Trade and other payables Deferred income

Total Equity and Liabilities

8 9

40 000 306 1 97

10

1 991 770

40 000 23A 097

2337 967

1 940 692

24 106 102

?I Q?? A"2

The Homestead (Projects for Street Children)

(Registration number Non-Profit Organisation. 003-21 7) Annual Financial Siatements for the year ended 31 March 2015

Statement of Comprehensive Income Fiqures in Rand

Notes

Revenue Cost of sales

IJ

Gross profit Other income Operaiing expenses

Operating surplus lnvestment revenue Fair value adjustments Naiional Lottery Distribution Trust Fund (NLDTF) Finance costs

Surplus for the year

2015

2014

214 850 16 600

(181 58s)

,3',1 450 8 336 910 (7 343 0e3)

8 207 050 (7 3ss 7e4)

1 ?25 267

1 028311

to

127 122

17

4ZJ UJ3

18 'l 9

.

35E 640

177 455

198 895 222 269 878 999

ael

(20e)

1 775 294

2 s28 266

1 775 294

2 328 266

1r

Other.comprehensive income

Total comprehensive surplus

r50)

Capital expenditure Restricted funds

(ese (692 640)

Total operational surplus for the year

123

'1

0

504

(436 414) 1 891 8s2

The Homestead (Projects for Street Children)

(Registraiion number Non-Profit Organisaiion: OO3-217) Annual Financial Siatements for the year ended 31 March 201S

Statement of Changes in Equity Project Surplus

Figures in Rand Balance at 01 April 2013

Retained

Total equity

Surplus

Chanoes in equity Total comprehensive surplus for the year Transfer from Project Surplus

2 715 427

14 949 148

17 664 575

2 328 266

z 526 zoo

(2 640 229)

2 640 229

Total changes

Q640r2s)

4 968 495

2 328 266

19 917 643

19 992 84't

1 775 294

1 775 294

Balance at 01 April 2014

75 198

Changes in equity Total comprehensive surplus for the year Total changes

Balance at 31 March 2015

75 198

11

1 775 294

1

??5 2g4

21 692 937

,1

?68 1 35

The Homestead (Pro.iects for Street Children)

(Regisiration number Non-Profit Organisaticn: OO3-217) Annual Financial Statemenis for the year ended 31 March 2015

Statement of Cash Flows Figures in Rand

2A15

Cash flows from operating activities Cash generated from operations Interest income Dividends received Finance costs

21

2 452 278

1 166 008

127 122

178 961 19 935

(1

Net cash from operating activities

88)

,1?' A'

(20e) 1 364 69s

Cash flows from investing activities Purchase of property, plant and equipment Sale of property, plant and equrpment Net movement of other financial assets

(ese 1 50) 17 301 /oaA n(o\

(436 414) (3s 1e1) (2 324 844)

(1 937 908)

(2 796 449)

Cash at the beginning of the year

241 304 437 257

(1 431754) 1 869 0'1 1

Total cash at end of the year

678 561

Net cash (used in) investing activities

Total cash movement for the year

tz

437 257

The Homestead for Street Children) _(Projects Registraiion umbe r N n-profit Orga nisation : OO3_21 (

n

7)

o

Annual Financial Statements for the year ended 31 March

20.1 S

Accounting Policies 1.

Presentation of Annual Financial Statements

The annual flnancial statements have been prepared in accordance with internatronal Financial Reporting Stancjards, and the companies Aci of south Africa' The annual financial statements nau" f""n pr"pared on the historical cost basis, except for the measufement of investment properties and certain financial instruments at iair value, and incorporate the principal accouniing poiicies set out below. They are presented in South African Rands.

1.1

Significant judgements and sources of estimation uncertainty

In preparing the annuai financial siatements, management is required to make estimates and assumptrons that affect the amounts represented rn the annual financial statements and related disclosures.

Use of available information and ihe applicaiion of judgement is inherent in the formaiion of estimates. Actual results in the future could differfrom these estimates

which may be material to the annuai financial statemenis. Significant judgements inciude:

Trade receivables The organisation assesses its irade receivables for impairment at the end of each reporiing period. ln determining whether an impairment loss should be recorded in profit or loss, the organisation makes judgements as to whether there is observable data indicating a measurable decrease in the estimated tuture cash flows from a finanoar asset.

lmpairment testing The company reviews and tests the carrying value of assets when events oT changes in circumstances suggest that the carrylng amount may not be recoverable. In addition, goodwill is tested on an.annual bisis for impairment. AsseiJare grouped at the lowest level for which ideniifiable

cash flows are largely independent of cash flows of other assets and Iiabilities. lf there are indications that impairment may have occurred, estimatis are prepared of expected fuiure cash flows for each group of assets Expecied future cash fiows used to determine

value in use of goodwill and tangible assets are inherenily

uncertain .the and could materially change over iime. They ar-e significantly affected by'a number of faitors together with economic faciors such as fiist economic faciors such as exchange rates inflation interest].

Deferred income Management reviews the grant contracis received in advance.

1.2

/

agreements

/

project reports and based on their review they calculate income

Property, plant and equipment

The cost of an item of property, plant and equipment is recognrsed as an asset when: it is probable that future economic benefits assocrated with the item will flow to the company; and .' the cost of the iiem can be measured reliably.

Property, plant and equipment is initiallv measured ar cosi.

Propefty, plant and equipment are depreciated on the straight line basis over their expected useful lives to their esiimated

residual value.

Property, plant and equipnrent is carried at cost less acumulated depreciation and any impairment losses.

The useful lives of items of property. plant and equiprnent have been assessed as follows: Item Land

Buildings Leasehold property Furniture and fixtures Motor vehicles Compuier equipment

Average useful life lndefinite 50 - 100 years 40 years 15 years 6 - 7 vears 5 years

The residual value, useful life and depreuation method of each assel are reviewed at the end of each reportrng period. lf the expectaiions differfrom previous estimates, the change is accounred foras a change in accouniing estimate.

The Homestead (Projects for Street Children)

(Registration number Non-Profit Organisation: 003-217) Annual Financial Statements for the year ended 31 March 2015

Accounting Policies 1.2

Property, plant and equipment (continued)

Ti''e gain or loss arising from the derecogmiiion of an item of property, plant and equiprnent is included in profit or loss when the item ls derecognised. The gain or loss arising from the derecognition of an item of proper'ry, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the iiem.

1.3

Financial instruments

Initial recognition and measurement Financial instruments are recognised initially when the organisation becomes a party to the contractual provisions of the

lnstruments.

The organisation classifies financial instruments. or their comoonent parts, on initial recogniiion as a financial asset. a financial liabiliiy or an equity insirument in accordance with the substance of the contractual arranqement.

Fair value determination The fair values of quoied investments are based on current bid prices. lf the market for a financial asset is not active (and for unlisted securities), the company establishes fair value by using valuation techniques. These include the use of recent arm's length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis. and option pricing models making maximum use of market inputs and relying as little as possible on entity-specific inputs.

Financial instruments designated as at fair value through profit or loss Financial assets at fair value through profit or loss are financial assets held for trading, A financial asset is classified in this caiergory if acquired principally for the purpose of selling in the short term.

Investments are measured initially and subsequently at fair value, gains and losses arising from the changes in fair value are

includecj in profit or loss for the perioC.

Trade and other receivables Trade receivables are measured at initial recognition at falr value, and are subsequently measured at amortised cost using the effective interest rate method. Appropriate allowances for esiimated irrecoverable amounis are recognised in profit or loss when there is objective evidence that the asset is impaired. Significant financial difficulties of the debtor, probability that the debtor wili enier bankruptcy or financial reorganisation, and default or delinquency in payments (more than 30 days overdue) are considered indicators that the trade receivable is impaired. The allowance recognised is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the efiective interest rate computed at initial recognition.

Trade and other receivables are classified as loans and receivabies.

Trade and other payables

Trade payables are initially measured at fair value, and are subsequently measured at amoriised cost, using the effective interest rate method.

Cash and cash equivalents Cash and cash equivalents comprise cash on hand and demand depmrts, and other shoft-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These are initially and subsequently recorded at fair value.

1.4

lnventories

Inventories are measured at the lower of cosi and net reafisabb value.

Net realisable value is the estimated selling price in the orCi.ary course the estimated costs necessary to make the sale.

1)

crf

business less the estimated costs of completron and

The Homestead (Projects for Street Children) (Registration number Non-Profit Organisation: 003-217) Annual Financial Siatements for the year ended 31 March 201S

Accounting Policies 1.4

Inventories (continued)

The cost of inveniories comprises of all costs of purchase, costs of conversion and other costs incurred in brinoino the inventories to their present locaiion and condition.

The cost of inventories of items that are not ordinarily interchangeable and goods or services produced and segregated for specific projects is assigned using specific identification of the individual costs.

The cost of inventories is assigned using the weighted average cost formula. The same cosi formula is used for all inventories having a similar nature and use to the eniity.

When inventories are sold, the carrying amount of those inventories are recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of inventories to nei realisable value and all losses of inventories

are recognlsed as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventortes, arising from an increase in net realisable value, are recognised as a reduction in the amount o{ inventories recognrsed as an expense in the period in which the reversal occurs.

1.5

lmpairment of assets

The organisation assesses at each end of the reporting period whether there is any indication that an asset may be impaired. lf any such indication exisis, the company estimates the recoverable amount of the asset. lf there is any indicaiion that an asset may be impaired, the recoverable amount is estimated for the individual asset. lf it is not possibie to estimate the recoverable amount of the individual asset, the recoverable amount of the cash-qeneratino unit io which the asset belongs is determined.

The reccverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its value in use.

lf the recoverable amount of an asset is less than its carrying amount, the carrying amount of the asset is reduced recoverable amount. That reduction is an impairment loss.

io

its

An impairment loss of assets carried at cost less any accumulated depreciation or amortisation is recogniseo immediately

in

profit or loss.

The increased carrying amount of an assetl attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined had no imparrment loss been recognised for the asset in prior perrods.

A reversal of an impairment loss of assets carried at ccst less accumulated depreciation or amortisation other than goodwill is recognised immediately in profit or loss. Any reversal of an impairment loss of a revalued asset is treated as a revaluation tncrease.

1.6

Share capital and equity

An equity instrument is any coniract that evidences a residual interest in the asseis of an entity after deductjng all of

its

liabiiities.

1.7

Government grants

Government grants are recognised when there is reasonable assurance that: . the organisaticn will comply with the conditions attaching to them: and . the grants will be received.

Government grants are recognised as income over the periods necessary to match ihem with the related cosis that they are intended to compensate.

A government grant that becomes receivable as compensation for expenses or losses akeady incurred or for the purpose of immediate financial support to the eniity with no future related costs b ecognised =* income of the oeriod in which it -oiving becomes receivable.

Government grants related to assets, including non-monetary grants at fair value, are presented in the statement of financial posiiion by setting up the grant as deferred income or by deducting the grant in arriving at the carrying amount of the asset.

15

The Homestead (Projects for Street Children)

(Registration number Non-Profit Organisaiion: OA3-217) Annual Financial Statements for the year ended 31 March 2015

Accounting Policies 1.7

Government granis (continued)

Grants related to income are presented as a credit in the profit or loss (separatelv).

1.8

Revenue

Revenue from the sale of goods is recognised when all the following condiiions have been satisfied: ' the organisaiion has transferred to the buyer the significant risks and rewards of ownership of the goods; ' the organisation retains neither continuing managerial rnvolvement to the degi"ee usually associaied with ownership nor effective control over the goods sold; . the amount of revenue can be measured reliably; ' it is probable that the economic benefits associated with the transaction will flow to the organisatlon; and ' the costs incurred orto be incurred in respect of the transaction can be measured reliablyi Revenue is measured at the fair value of the consideration received or receivable and represenis the amounts recervable fof goods and services provided in the normal course of business, net of trade discounts and volume rebates, and value added

tax.

lnterest is recognised, in profit or loss, using the effective interest rate method.

Dividends are recognised, in profit or loss. when the organisation's right to receive payment has been established.

Grants are recognised as income over the periods necessary to match them with the related costs that they are intended to compensate.

Donations and subsrdies are recoonised in profit and loss when the organisation's right

established.

1.9

io

receive pavment has been

Cost of sales

When inventories are sold, the carrying amount of those inventories is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of inventories tJ net realisable value and all losses of inventories

are recognised as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net realisable value, is recognised as a reduciion in the amount recognised as an expense in the period in which the reversal occurs_

1.10 Borrowing costs Borrowrng costs are recognised as an expense in ihe period in which thev are incurred.

lo

of

inveniories

The Homestead (Projects for Street Children) (Regisiration number Non-Profit Organisation: 003-21 7) Annual Financial Statements for the year ended 31 March 2015

Notes to the Annual Financial Statements 2.

Property, plant and equipment 2015

Cost

2014

Accumulated Carrying value

Cost

Accumulated Carrying value

depreciation

depreciation

983) 366) 873) 224) 683)

13 203 660

1 109 057

(41s (307 (101 (428 (327

16 858 001

(1 581

129)

15 276

Land and Buildings Furniture and fixtures IT equipment Leasehold property Motor vehicles

13 619 643

Total

396 285 123 023 I OUY YYJ

88 91 9 21 15o 1 181 769

78i

374

872

735) 13 424 114 755) 252 (98 s28) 10 640 (372341) 741 378 (257 C81) 51s 636

13 618 849 294 007 109 168 1 113719

(1

94

(293

772 7 17

(1 216

15 908 460

440\

14 692 A20

Reconciliation of property, plant and equipment - 2015 Opening balance 4a tar

Land and Buildinos Furniture and fixtures lT equipment Leasehold properiy Motor vehicles

44^

Additions Depreciation

966) 612) (3344) (s5 773) (70 602)

10 512

(230 (13

741 378 515 636

102 279 13 855 496 164 336 340

14 692 020

959 150

zJl 10 640

(374

297\

Closing balance 1

3 203 660

88 s1s

21 151 1 181 769 781 374 15 276 873

Reconciliation of property, plant and equipment'2014 Opening balance Land and Buildings Furniture and fixtures lT equipment Leasehold propedy Motor vehicles

3.

13 291 306

Additions

Disposals

Depreciation (132

264 984

448 475 19 607 731 610 455 540

51 190 108 772

rit

14 946 138

436 414

(468 20e)

1'1

468

e47

176)

(1e1) (41 422) (48 s34)

82;)

t)n )44\

(222323)

Closing balance 13 424 114 252 10 640

741 378 51 5 636

14 692 s20

Other financial assets

At fair value through profit or loss - designated lnveslec

i

217 170

1 159 374

1 469 341

:rJ I l01

5 044 604

4 221 42.

? ?31 115

6 311 953

7 731 115

5311 963

The Homestead (Projects for Street Children) holds a classic investment plan with lnvestec Prudeniial

The Homestead (Projects for Street Children) holds a classic investment plan with Prudential Stanlib investment portfolio

The Homestead (Projects for Street Children) holds a classic investment plan with Stanlib

Non-current assets At fair value through profit or loss - designated

The Homestead (Projects for Street Children)

(Registraiion number Non-Profii Organisation: OO3-217) Annual Financial Statements for the year ended 31 March 2015

Notes to the Annual Financial Statements Figures in Rand

3.

2015

2014

Other financial assets (continued)

Fair value hierarchy of financial assets at fair value through profit or loss For financial assets recognised at fair value, disclosure is required of a fair value hierarchy which reflecis the signiflcance of the

inputs used to make the measurements.

Level 1 represents those assets which are measured using unadjusted quoted prices for identical assets.

Level 2 applies inpuis other than quoted prices that are observable for the assets either directly (as prices) or indirectiy (derived from orices).

Level 3 applies inputs which are not based on observable market data.

Level

1

Inveslec Prudeniiai Stanlib

4.

1 159 374

5 044 604

4 221 422

7 731 655

5 311 963

88 443 73 373 226 038

109 427 103 361 85 127

387 854

?97 51 5

a1 7nn

3 789 59 907

31 700

194 778

YJ I IO/

lnventories

Finished goods Raw materials Work in progress

5.

1 217 710 1 469 341

Trade and other receivables

Accrued income Staff loans Trade receivables VAT

5 766

tz3 J to

Management considers the carrying amount of trade and other receivables to approximate its fair value

6.

Cash and cash equivalents

Cash and cash equivalents consist of: Cash on hand Bank balances

20 489 658 072

21 433 415 824

678 561

437 257

Credit quality of cash at bank and short term deposits, excluding cash on hand The credit quality of cash at bank and short term deposits, excluding cash on hand that are neither past due nor impaired can be assessed by reference to external credit ratings (if available) or historical information about counterparty cjefault rates:

Credit rating 646 886

ABSA Bank Limited - A (Stable) Standard Bank- A (Stable)

18

413 858

11186

1 966

658 072

415 824

The Homestead (Projects for Street Children)

(Regisiration number Non-Profit Organisation: OA3-217) Annual Financial Statements for the year ended 31 March 2015

Notes to the Annual Financial Statements Figures in Rand

7.

2015

2014

Reserves

Project surplus Child care workers reserve

75

198

75 1 98

The projeci surpius consists of the following reserves Future projects reserye The Homestead was in the process of building a children's home on the property recenily acquired in Khayelitsha. These funds

were reserved towafds the costs of the construction of the children's home and the exoansion of eariy intervention, outreach and preservaticn programmes. The building was completed in the prior financial year and the remaining reserves relate to the up keep of the home.

At the beginning of the year Utilisaiion of reserve \-

vve

vvv/

Child care workers reserve

Iff"t:j::*^?re ur ilru uat E SLdt

reseryed to cover the costs of providing accredited training in child and youth care to all of the organisation,s

I

At the beginning of the year

8.

75

198

75 198

40

000

40 000

40

00c

40 000

2SS

024

230 Oe7

Other financial liabilities

Held at amortised cost Hans Katoen The loan is interest free, unsecured and has no repaymenr ierms

Current liabilities At amortised cost

L

Trade and other payables

Accrued leave pay Other accruais

VAT

37 146 14 OZ7

306 Management considers the carrying amounis of trade and other payables to approximate its fair value

197

230 097

The Homestead (Projects for Street Children)

(Registration number Non-Profit Organisation. OO3-217 ) Annual Financial Statements for the year ended 31 March 2015

Notes to the Annual Financial Statements Figures in Rand

10.

2015

2014

Deferred income

Defened income consists of sponsorship income and restricted funds which has been ring-fenced for specific purposes which mainiy relates to capital expenditure.

Sponsorship income

595 160 (1 709 s6s) 1 318 186

Balance at the beginning of the year Received during the year Utilised durrng the year

1 670 1 357

2 330 1 56 948 583 (1 608 144) 1 6?0 595

Restricted funds Received during the year Utilised during the year

'1

356 767 (682 283) 674 484

Non-cu rrent liabilities Current liabiiities

I

991 774

1 670

1 991 770

11.

s;s

1 670 59s

Financial assets by category

The accouniing policies for financial instruments have been applied to the line iiems below. The amounts included below do not necessarily agree to the amounts on the siatement of financial position. Any differences are due to the amounis below only relating io financial instruments and therefore any non-financial insti-umenis have been excluded.

The Management Committee are of the opinion that the carrying vaiue of the financial assets approximate iheir fair value 2015

Loans and receivables

Fair value

Total

through profit or loss designated

Cash and cash equivalents Other flnancial assets Trade.and other receivables

678 561

678 561

_

/ /JI

iIJ

7 731 115

31 700

710 261

31 700 7 731 11s

I

441 376

2014

Loans and receivables

Non-financial

Fair value

designated Cash and cash equivalents Oiher financial assets Trade and other receivables

437 257

_

6311 964 s9 s07 497 164

20

Total

through profit instruments or loss -

6 311 964

134 871 134 871

437 257

6311 964 194 778 6 943 999

The Homestead (Projects for Street Children) (Registration number Non-Profit Organisation: OO3-217) Annual Financial Statements for the year ended 31 March 2015

Notes to the Annual Financial Statements Figures in Rand

12.

2015

2014

Financial liabilities by category

The accouniing policies for financial instruments have been applied to the line iterns below. The amounts included below do not necessarily agree to the amounts on the statement of financial position. Any dirferences are due to the amounts below only relating to financial instruments and therefore any non-financial instrumenis have been excluded.

The Management Committee are of the opinlon ihat the carrying value of the financial liabilities approximaie their fair value 2015

Financial

Fair value

Total

liabilities at through profit amortised or loss - held cost for trading Other fi nancial iiabilities Trade and other payables

40 000

40 000

230 101 ?30 141

230 101 40 000

270 191

2014 Fair value

Financial

Total

liabilities at through profit amoftised or loss - held cost for trading Other fi nancial liabiliiies Trade ancj other payables

yJt ZV

937 201

13.

Revenue

Qrlo

nf nnnde

14.

Cost of sales

Sale of goods Cost of goods sold

15.

40 000

40 000 937 201

40 000

977 201

I

214 850

358 640

(16 600)

181 585

Other lncome

Funders Action of Street Kids Department of Social Developmeni - Western Cape Goldman Sachs Nedbank Private Wealth Red Het Talent Wings of Support Other

216 588

147 599

4 937 021

4 128 199

266 648 150 000 1,27 775 620 534 2 018 344

3

8 336 910

8 207 050

%1 25;

The Hornestead (Projects for Street Children)

(Registration number Non-Profit Organisation: OA3-217) Annual Financial Statements for the year ended 31 March 2015

Notes to the Annual Financial Statements Figures in Rand

15.

2015

2014

lnvestment revenue

Dividend revenue Other financial assets - Local

19 935

Interest revenue Bank and other financial assets

17.

122

423 093

222 269

National Lottery Distribution Trust Fund (NLDTF)

Funding received

19.

878 999

Finance costs

Bank

20.

178 961 198 896

Fair value adjustments

Other financial assets

18.

127

127 122

188

209

Taxation

The Homestead (Projects for Street Children) has been approved as a public benefit organisation in terms of seciion 30 of the lncome Tax Act. The organisation's receipts and accruals are therefore exempt from income tax in ierms of section 10(1)(cN) of the Act. and as a result no provision has been made for income tax.

21.

Cash generated from operations

Profit before taxation

Adjustments for: Depreoation Profit on sale of assets Dividends received l^+^.^^+ -^^^:.,^J

Finance costs Fair value adjustments

Changes in working capital: Inventories Trade and other receivables Trade and other payables Deferred income

1 775 294

374 296 (17 301)

2 328 266 222 503 /14 (178 \

(127 122) 188

(423 093) (e0 33e)

toJ u/v 76 101 321 175 2 052 278

| v

343 400 O?(\ vvv,

e61)

209 (222 26e) 15 311 12 s99) (710 196) (1

(65e 56i) 1 165 008

The Homestead (Projects for Street Children) (Registraiion number Non-Profit Organisation: OA3-217) Annual Financial Statements for the year ended 31 March 2015

Notes to the Annual Financial Statements Fioures in Rand

22.

2015

2014

Risk management

Liquidity risk Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of commitied credit faciliiies and the ability to close out market posiiions. Due to the dynamic nature of the underlying businesses, organisation treasury maintains flexibility in funding by maintaining availability under committed credit Iines.

The organisation's risk to liquidity is a result of the funds available to cover future commitments. The organisaiion manages liquidity risk through an ongoing review of future commitments and credit facilities.

A,t 31

Less than year

March 2015

1

40 000 2 273 895

Other financial liabilities Trade and other payables

Less than year

At 31 March 2014

1

40 000 1 900 693

Other financial liabiiities Trade and other payables

Credit risk Credit risk consists mainly of cash deposiis, cash equivalenis, derivative financial instrunrents and trade debtors. The company only deposits cash with major banks with high quality credit sianding and limiis exposure to any one counter-party.

Trade receivables corrrprise a widespread customer base. Management evaluated credit risk relating to cusiomers on an ongoing basis. lf customers are lndependently rated, these ratings are used. Otherwise, if there is no independent rating, risk ccntrol assesses the credit quality of the customer, taking into account iis financial position, oast experience and other factors.

Individual risk limits are set based on internal or external ratings in accordance wiih limits set by the board. The utilisation of credit limits is regularly monitored. Sales to retaii customers are settled in cash or using major credit cards. Credit guarantee insurance is purchased when deemed appropriate.

Financial assets exposed to credit risk at year end were as follows: 2015 658 071 37 200

Financial instrument Bank accounts Trade and other receivables

23.

2014 415 824 194 778

Contingencies

In October 2012, the entity moved into new premises, At the time of the move there was no electricity meter on the premises.

At the end of this report there is still no meter present despite numerous atiempts to notity Eskom to conect this. No electricity expense has therefore been recognised since this period as thei'e is no way of estimating this amount due to no meter being present.

23

The Homestead @rojects for Street Children) Qrion-Profit Organisation: 003-2 I 7) Annual Financial Stalements for the vesr ended 31 lVlarch

201 5

Detailed Statemenl of Financial Performance

SaJes

Co* ofSaies

Other Operating l.cme Ador for Streedrd!

ll

Chrins

F@d & Clobmg Ctnetal (Donanoru incone )

(aq

Golement Govetu€il Subsides (Depament

of Soaal Deve iopnent )

Srreer

Fud

Smd

Rrsqed

FuCrng lncome

TM

6-00:

|lr'**l 1 "':''I

)

GaE

I

CIam

|

Mobr Veiri.le sle

Naond laren ir6me

Gensr"l \1-i!! .\ss€Pedsion B3d Debts

Bad. Cbarges Bdb Cbaees

,,.="ll

t +rt

l+ l I

.'o:0

rl'

1

:o:.:ll rRotl ,:

"es

|

I

|

63t

80 00?

'o

s,"

||

llI I

".": I

I

.ll

41.

e.'

I

r,::,1 a8001

r:- r:-'

I

:'l

66',1

2t Expenses

I

291

l0ti

23 876

9 340

9 340

6 ?00

6 700

251 4 2)6

24:tt

80 66?

12

24 The suppiementary iniomaton does nol

lcm pai olth€

l

l

78s0:l

7 386 048

Opemting Erpens .A@uniing Fes Advemsmg & Puiri::in

Asu:l

,,rr c'ir

| '''''ll

ineEs Rierved

I

o,,o,,l

I

288 330

Far \ slue AdrMenE (Capital Growth on lrues.nents

lnsutu*

I

l--_.l t-_:-l | II

Drsmul Re*ived

,-:',11

33: 31x 1

*,*,il ".,.,,11 ,,,,,*l ;*ll ,"ll ,,*ol I ll '*:''ll | ,.,,,11 $;iill

11?47011

I

Otber Income DiudeDds Reerved

Other

I| |

|

tt ,,i" |t-^..-l

Chier Donation lncome

l

473 6e5

I tt |

of Cape Town)

Nes ChildEns Home SponsorshiD

450

39 814

Camp

Subsidres

:3I

231 450

TradiBg IDcome

annual fnancial

siaierents and is unaudiled

e

lh J{o^m^estead @roj ects for Non-Profit Oroanisarion: OO:-Z t Z) Annual Financial Slalemetrb for the vear ended

jl

Street

March 20I

C

hild ren )

S

Detailed Sraremenr of Financial performance

Book &

Penodrcles

C-p

296

Chiidrens tuileAe Chnma & Hoirda\

426

Clo&Dg

Conpurr softu.m

FooC

00!

)6 378

44 571 r6 062

:. 404

I 63t' I 421

31

is:

:

259

4 185

tr

98?

2

028

6t 36:

05:

oe

lq<

t7

o, irn

:)

6i

64 22E

1:

)41

54 621

67 97)

zas

2l

8 800

958

li

ll1

74

ill

iez

)6 297

t isr 6sG

t

i78

?2 948

10r?

I :t

CompEers MajntenD€ Equipmenl Medrcal Expenses

Peh Cah Slolen Pocket Moner Posge & Deirven Prmug & Saronen Professronal Fees

Pubi,cin

40i

i'rs

245 91E

60

26 526

82 36f;

56

188

lr8 209

ti 6t4

,*

l

120

1:406 48 0i7

3

,tu 80

4 128

2.t 225

185

216.i

,to 2 476

33 908

?0ll

i76

6 600 ,\'/ 711

5

4t

5t t89

449

|]6 0i6

97:93

i

14tl

4 585

300

4 4Li

681

2 4?A

8

4 811

131

195t6

25 36f,

6j i2i

Ptred Empo*ement

Corrol

6

210 E8(,

50: 400

MauEnu€

Pen

llti

af:

Lrbb\me A Advomr

Neu Children Home

i59 890

48

30:5ti

I50

12 40t(

458

900

374 296 8 951

6l2t

150

Houebold Rrplaemen6 lnd€pendenr LvinS proled

:

20,1

641

I

854

11 411

150 898

Cosrs

lnsr:roce iniere$ Paid Job Creauor Expenses Lienses lnss oD drsposl ol6red

469

r24',76: 3 666

)4 924

M\

Fudmsin-e Expenses

rs

92)

i

Conribuuons

Dcpreod)ot E{iu€Don & Recreeon Eletucn & Wer Flowem. Wrealhs & Gfu

Moor Erp , Repars Moor Exp - Fuel

989

ENpcrs

ClmiDS

Govemae

88?

:n'

i,-,

I55r I

---l r7061 41381 ?6S

The supplementarv inlormabon does not

I

5 080

I

?4?

400

794

I i35

186

5

30 5 97:

4 927

:461 20 13[

2i

102

:971

34

6l:

28

7t:

I tro 6

2i5

1410.c

I

890

forh pan oi the annual fnanciai sbtebents and 6 unauofieo

126

223

21 212

309

5 349

t)

: :

4t1

768

4 960

i3

The Ho_mestead (?rojects for Street Children) f,nion-Profi

t Organisation: 003-2 1 7)

Annual Financial Statements for the vear ended 31 March

201 s

Detailed Statement of Financial perfoi-mance

Reliefivork

3t 85i I 849

Renl Reparre

&

Mucnme

22

Salmes

I

School fees & Expenses Seanrr & Fire

7

266 825

I

? 988

Sponsors)rp Expenses Spon md Recreauon

u,,

Sbff_Rembucement Ssfi'Recrem or DeveloDmenl

Subscnprons

& Fd Tmspon - Fms \talhalla Pdk €xpenses Telephone

2 054 760

852 474

4 668 419

9 )75

:5 050 5l ?i5

41 74r

I

014

i44

:fe

::r:to

t0 49tr

Itr 490

I

000

s 160

\2 271 5 831

i

598

I -.9t

l8 l5

44_i

r

495

82

i9?

4 549 64t) 19 734 36

40[

399 4E6

27ll

3t' 998 )? n02 21 177 4 801

36 266

5r5

5e 5e3

ou

Xma ad Holidar erpenses

9t?

618

63 4(,r

VoluE€i Allowo€

78

tl819 92

5 896

813

59 653

)6 675

,:Sf

SEtrAssi@c

60t)

E49

15 876

Skills TEDrng

SEfTcmDg &

21 200

t36

l'*

lE i43

l0 i50 I5 435 I

| |

75

77t

71 E42

t8

0il

I91 12 526

Surplus / (Deficit) for rhe

)'err

TiE srylementary

ni.ffitcn

424

(335 6?6)

s9

26 does not form pan or the

annuarfnanial stalehenls and E unaudiied

1 831 ,122

213 849

2 328 266