East African Communications Organisation (EACO)Audited Financial Statements For the year ended 30 June 2014Pres

Presentation by: Peter Rutaremara

Financial StatementsPRESENTATION

Introduction

We audited the financial statements of EACO for the year ended 30 June 2014. Our audit was conducted in accordance with the terms of reference. The terms of reference sets out the basis on which we act as auditor of the organization and the respective areas of responsibility of the Congress and of ourselves, which we highlight below:

Congress’ responsibilityArticle 8 of EACO’s constitution establishes the Congress as the highest decision making organ. The constitution gives the Congress the ultimate responsibility to maintain proper books of account and accounting records and to prepare financial statements in accordance with the Financial Rules and Regulations which are consistent with the International Financial Reporting Standards.

Auditor’s responsibility under International Standards on Auditing

As the independent auditor of the organization, we have a statutory responsibility to report to the members whether:in our opinion the financial statements give a true and fair view of the financial affairs of the organization; and the financial statements have been prepared in accordance with International Financial Reporting Standards.

We are also required to obtain sufficient and appropriate audit evidence, by performing procedures about the amounts and disclosures in the financial statements. The procedures we select depend on our judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

EACO Financial Statements

Audit Opinion for the year ended 30 June 2014In our opinion, the financial statements give a true and fair view of the financial position of East African Communications Organisation as at 30 June, 2014, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.

Statement of Comprehensive Income - IncomeIncome 30 June 2014 30 June 2013 As a % of Total As a % of 2013 Usd Usd Membership contributions

848,500 850,500 52% -0.24%

Other Members Support Income

- 10,626 - -100.00%

Subsidies for Secondment scheme

581,729 523,773 35% 11.06%

Other Income 152,041 38,177 9% 298.26%Exchange gain 56,984 -

3%

1,639,254 1,423,076 100%

EACO Financial Statements

Income graph by source

EACO Financial Statements

Notes on Income Total income has increased mainly due to an increase of other

income. This was mainly caused by Usd 148,821 received from an exhibition held during the year.

Exchange gain has increased during the year mainly as a result of revaluation of bank balances held in local currency (Rwf)

Membership contribution accounts for 52% of total income.

EACO Financial Statements

Statement of Comprehensive Income - Expenditure 30 June 2014 30 June 2013 As a % of Total As a % of 2013

Expenditure Usd Usd Office Supplies 20,495 16,511 2% 24.13%Operating Expenses

193,337 222,791 16% -13.22%

Other operating Expenses

254,521 545 21% 46635.08%

Staff Costs 617,762 538,286 52% 14.76%Depreciation 36,647 21,670 3% 69.12%Translation loss 69,352 36,247 6% 91.33% 1,192,114 836,050

EACO Financial Statements

Notes on Expenditure Staff costs account for 52% of the total costs Other operating costs are mainly made up of a provision for bad debts

amounting to Usd 243,000 representing 90% of the debtors for the year 2012/2013.

EACO Financial Statements

Statement of Financial Position - Assets ASSETS 30 June 2014 30 June 2013 As a % of Total As a % of 2013

Non Current Assets

Usd Usd

Property and equipment

176,693 123,698 12.94% 42.84%

Current Assets Trade receivables

498,538 284,364 36.51% 75.32%

Cash and cash equivalents

690,331 528,703 50.55% 30.57%

TOTAL ASSETS 1,365,562 936,765 100.00% 45.77%

EACO Financial Statements

Notes on Assets Cash and cash equivalents comprise of 50.55% of the total assets Trade and other receivables have increased by 75.32% as compared

to the period ended 30th June 2013. This was mainly caused by the unpaid invoices raised for the subscriptions relating to the year ended 30th June 2014.

The 42.84% increase in assets is mainly attributable to IT equipment acquired at a cost of Usd 49,580.

EACO Financial Statements

Statement of Financial Position – Members funds and Liabilities

ASSETS 30 June 2014 30 June 2013 As a % of Total As a % of 2013Members funds and Reserves

Usd Usd

Starting Funds (RURA)

208,527 221,463 16.89% -5.84%

Grant of Equipment (RURA)

4,336 6,314 0.35% -31.33%

Accumulated Funds

1,021,816 587,026 82.76% 74.07%

1,234,679 814,803 100.00% 51.53%Current Liabilities Trade and other payables

68,247 61,396 52.14% 11.16%

Prepaid Income 62,636 60,566 47.86% 3.42% 130,883 121,962 100.00% 7.31%

EACO Financial Statements

Notes on Liabilities Total members funds increased by 51.53% mainly due to the

increased surplus during the year. Current liabilities grew by 7.31%

ConclusionPRESENTATION

CONCLUSION

Questions and Answers

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