2018 - isaca kenya chapter 2019/2018_isaca_kenya_chapter_report.pdfmembership growth as our key...

2018 ISACA KENYA CHAPTER ANNUAL REPORT AND FINANCIAL STATEMENTS

KENYA CHAPTER

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Vision: To lead in building trust in, and value from Information systems in Kenya.

Mission: To provide knowledge, certifications, networking advocacy and education on information systems assurance and security, governance of Enterprise IT, and IT-related risk and compliance for professionals and organizations.

Our Purpose: To promote the education of individuals for the improvement and development of their capabilities relating to the auditing of and/or management consulting in the field of IS audit and control.

ISACA KENYA CHAPTER | 2018 ANNUAL REPORT AND FINANCIAL STATEMENTS | 3

Table of Contents

President's Report 4

CEO's Message 6

Board of Directors 7

About ISACA Kenya 8

Our Strategic Plan 9

SheLeadsTech 10

InterVarsity Bootcamps 12

Membership & Certifications 13

Annual Conference 14

20 Year Anniversary 16

2019 Events Calendar 17

2018 Financial Statements 18

Committees 34

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Dear ISACA members,

As we celebrate our 20th anniversary this year, it is a moment for us to reflect on our achievements and the great work of the founding members of the chapter as we also prepare for a future that promises the most for our profession.

All enterprises are recalibrating their business models to better tap into the vast potential of technology. They do this as they combat new challenges from emerging technology such as the expanded cyberthreat landscape, data privacy concerns among many other challenges. This in turn is an opportune time for our profession as we seek to enable individuals and enterprises achieve the positive potential of technology.

As we look back at 2018, it has been an exciting time to be an ISACA member. It has been a few months since you gave me the mandate as the President of the chapter, but I can report great progress on various fronts. This has been achieved by having the most engaged board members who serve selflessly and commit their time. Further the volunteers serving various committees have done a tremendous job, with unrivalled zeal. We have also ensured that our secretariat is motivated to serve you better.

This has in-turn made my work easy and straightforward to focus on steering our chapter to greater heights.

I am glad to announce that as earlier on promised, we are having our Annual General Meeting (AGM) on 8th of June 2019. Going forward, we shall be having it earlier in May as we implement key reforms such as electronic voting and many others.

Membership GrowthAs our key pillar, we have continued to see a growth in our membership. In 2019 we had a renewal rate of 74.15% which was an improvement from 69.73% in 2018. Our target membership renewal is 90% by the year 2020. We are aggressively pushing to achieve that by creating awareness through social media platforms and various workshops. We come second in the entire Africa region after South Africa on membership. As at 31st January 2019, our membership stood at 1,490 against 1,413 in a similar period in 2018. We have also seen our student membership grow from 10 in 2018 to 23 currently. Numbers of members holding various certifications has also increased as per the table below:

YEAR CISA CISM CRISC CGEIT CSXF

2014 435 92 25 13

2015 442 97 26 13

2016 452 104 35 13

2017 525 130 46 14 1

2018 571 148 58 21 9

2019 584 151 67 25 13

We are continuously engaging employers to support staff education and training by paying their membership fees so that they can benefit from the subsidized member rates as well enjoy several member only benefits. Chapter VisibilityMy board, promised that as a Chapter we shall increase in our visibility. Due to the intentional nature of our engagement of both leaders in the public and private sector our visibility has increased. A good example is the April 2019 annual conference, where we broke all our previous records. We had 300 attendees increasing previous attendance by over 50% and this attendance came from 5 countries and we had 10 sponsors support us on this conference. We had increased media coverage for this event both in the traditional media and social media including live coverage.

Our visibility has also been witnessed through our SheleadsTech platform where we continue to engage, empower and elevate women in the technology field. Our academia advocacy program has also continued to yield results as we see students join ISACA and attend our bootcamps. However, this is just the beginning and we want our chapter to be the go to place for policy makers in matters relating to cybersecurity, governance, assurance, risk and innovation.

President’s Report


Increased CollaborationWe continue to increase our collaboration with various parties. Our strategies on collaboration is on various fronts. We have collaborated with various academic institutions of higher learning in delivering bootcamps as a cost effective ways for students to join ISACA and attain our certifications. While we have engaged various partners in both private and public sector, we are in the process of streamlining our engagement which will see us collaborate more with professional bodies, private sector and public sector in a mutually benefiting way.

Regular events, conferences & meetingsIn 2018, we held a total of 29 events which are a mix of trainings, evening and breakfast talks, and two conferences. In 2019 we have planned for 28 events with more dynamism and market focused topics to address members’ knowledge appetite of which as we speak, we have already completed 10 events. This is also demonstrated in our growth of income to KSh 31,507,328 from 23,545,780 in 2017. Our surplus has also grown from KSh 883,381 in 2017 to 3,150,118 which will ensure we continue to subsidize our events to our members. We shall also continuously engage you in coming up with such events to ensure they are relevant and reflect current realities.

Increased AccountabilityTo ensure that we continue to increase our accountability, we have made sure that our audited accounts financial statements are available well in advance before the AGM. Further, our internal audit team which is a committee selected from the membership continues to keep us on toes on internal controls and prudent management of chapter funds. As with best practice, all decisions such as elections and rotation of the auditor will be decided by members at the AGM as well as our budget. As a chapter we also continuously engage ISACA HQ to ensure we comply with their policies and if any member has a question, they always have an open line to communicate with us.

Raymond Kiprotich Bett, CISA, CISM, CRISC, CEH, CSXF, CPA ISACA Kenya Chapter President

20 Year Anniversary Celebration

Membership growth to 1480+ members Increased accountability

Enhanced collaboration Relevant Events & Trainings Launch of SheLeadsTech Kenya

Key Highlights

R.K.Bett

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What does this mean to us? At the core of our Chapter operations which are geared to a high degree of excellence in service to our members, to ensure their membership remain current; trainings and workshops offered, have to be relevant and facilitated by industry experts with hands-on experience which also applies to speakers at the flagship annual conferences.

As a professional society, we are keen on developing relevant professional programs to benefit and uplift members and society in ICT knowledge areas of audit, security, risk, governance and cybersecurity. We greatly benefit from the global research work done by ISACA International through the engagement globally of members and experts.

Annually we bring together member delegates from government, state corporations, financial sector and other industries at the ISACA Kenya annual conference where we assemble expert speakers to share their knowledge and experiences on selected themes of discussion.

We give back to the society through the inter-varsity program which targets university students from different universities to benefit from an ISACA program facilitated by ISACA Certified members taking benefit of their industry experience. The students get the chance to network and be student members of the Association with full benefits offered to other members worldwide.

As the chapter grows and continues to offer improved services to members, other areas that will in future need to be considered of which your approval will be needed is on acquisition of office space and a vehicle to offer mobility to better serve members. Staff growth and development will be one area of focus as reflected in the chapter strategy.

It has been a great 20 years history and I want to thank all our members for having been with us to ensure we were recognized as the best chapter in Africa, and also achieving the highest growth rate award.

As we continue we will ensure to be guided by our strategic goals on three key areas which are finalizing the Chapter Operational Manual to cover Human Resource, Finance and Assets; We will continue to promote efficiency and effective management of chapter resources and finally we will continue to build and sustain skilled staff.

We will foster collaborative initiatives with professional bodies like ICPAK and IIA and also reach out to relevant government bodies to explore areas of collaboration for the mutual benefit of all.

We will ensure our bylaws remain relevant and updated regularly to be inline with local and ISACA International requirements.

Preston OderaChief Executive Officer

CEO’s message

Growing the Chapter Together Our strategy focuses on leading in building trust and value from Information systems with a mission to provide knowledge, certifications, networking, advocacy and education on information systems assurance, security, governance of enterprise IT, IT-related risk and compliance for professionals and organizations under-pinned on core values of professionalism, integrity, competence, teamwork, dedication, authenticity and innovation. POdera


Raymond Kiprotich BettCISA, CISM, CRISC,CSXF President

Fredrick Okong’o OumaCISA, CPA (K)Treasurer

Aprielle OichoeCISAResearch Director

Preston Odera. Chief Executive Officer

Anthony Mwangi MuiyuroCISA, CRISC, CSXF Vice President

Lucy Wanjiru MuiruriCISA, CISMCertification Co-ordinator

Paula Musuva KigenCISAAcademics Co-ordinator

Christine Lilian MukhongoCISA, CISMSecretary

Martin KilunguCISM, CRISC, CISA Membership Director

Denis Muli MutindaCISAImmediate Past President

Kenya Chapter Board of Directors

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Vision: To lead in building trust in, and value from Information systems in Kenya.

Mission: To provide knowledge, certifications, networking advocacy and education on information systems assurance and security, governance of Enterprise IT, and IT-related risk and compliance for professionals and organizations.

Our Purpose: To promote the education of individuals for the improvement and development of their capabilities relating to the auditing of and/or management consulting in the field of IS audit and control.

ISACA Kenya Chapter is a not-for-profit and a non-union professional association in the IT related industry founded in Kenya in December 1998 by a group of volunteers. The Chapter received its Charter from ISACA International in 1999 and was registered in April 2000 under the Kenya Societies Act. The Chapter was officially launched in October 2000 at the Grand Regency Hotel where more than 100 delegates were in attendance.

This year, 2019, the ISACA Kenya Chapter is celebrating 20 years and has since experienced tremendous growth in membership. It has earned global recognition for achieving the second highest annual percentage growth in membership worldwide. From the initial formation team of eight (8) in 1998 to the current membership of over 1,400, the Chapter is now categorized in the largest chapter group by ISACA International.

Connect with ISACA Kenya on social media:

About ISACA Kenya

1999 Date of establishment

1500+ Engaged professionals

1300+ Members and certification holders

www.facebook.com/ISACAKenyahttps://twitter.com/isaca_kenyahttps://www.instagram.com/isaca_kenyahttps://www.youtube.com/channel/UCvIMURyn-u6mMz-Dy52rF2ghttps://www.linkedin.com/company/isaca-kenya-chapter


Strategic Goals• To efficiently and effectively manage Chapter Finances• To drive research and innovation on emerging trends• To promote professional competencies in information systems assurance and security governance and Enterprise IT, and

IT-related risk and compliance• To attract and retain ISACA Members• To promote professional advocacy in academic institutions• To efficiently and effectively manage chapter operations and administrative functions• To manage legal affairs and ensure compliance with relevant laws and regulations• To manage stakeholders relations• To promote ISACA global initiatives

MembershipGrow our membership in Kenya to 3,000 by 2020

Training and ConferencesOffer best in class services to our members through training and conferences

Operational ExcellenceHave an improved secretariat that can support our growth plans and compliance with all regulations

CertificationsContinue to leverage our bedrock certifications, CISA and CISM and grow certifications on areas related to cybersecurity

Our Strategic Plan

Membership

Training and

Conferences

Operational Excellence

Certifications

To lead in Building trust in and value from information systems in Kenya

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SheLeadsTech is a global ISACA Program that seeks to increase the representation of women in technology leadership roles and the tech workforce. The program was launched in Nairobi in October 2018 by Jo Stewart - Chair, Women’s Leadership Advisory Council and Alisha Wenc – Manager, Corporate Programs. Both Jo and Alisha represented ISACA global during the event.

The program seeks to engage, empower and elevate women in technology. This is anchored on three pillars and activities indicated below:

SheLeadsTech


Achievements Since then we have been engaging in a lot of sensitization campaigns about the program to both members and non-members at our various events and trainings.

To date we have had two SheLeadsTech Events i.e.

1. Career Progression - What you need to know. This talk was delivered by Mr. Stephen Olieka who has extensive experience in Human Resource both in Technology and non-Technical fields. The evening talk was held a Best Western Hotel from 6:00pm - 8:00pm on 28th February and was well attended.

2. Digigirlz Mentorship Event in Collaboration with Microsoft. This whole day event targeted 200 high school girls drawn from various schools within Nairobi County and convened by the Girl Guides Association of Kenya. Together with Microsoft, ISACA provided mentors for the day and engaged with the girls on various career choices in STEM, the mentors also shared their personal journeys to inspire the girls and we had an afternoon of teaching the girls how to code.

3. Climbing the Corporate Ladder - Experiences and Challenges. This Breakfast Talk was delivered by our first and only lady president we have had at ISACA Kenya Chapter – Dr. Nancy Onyango. Nancy has a lot of experience having worked in various roles in consulting for over 30 years. She is currently the Director of Internal Audit at IMF. Nancy shared her personal experience and how she navigated the challenging environments to succeed.

Future PlansWe are still on a sensitization campaign of the program to both members and non-members so as to have as many participants not only aware of the program but also become part of this program in Nairobi. We realize that we must collaborate in this endeavour as ISACA cannot achieve this on her own and therefore we also intend to take SheLeadsTech to various organizations, holding talks and events at these organizations. This includes Corporates and Institutions of Higher learning. ISACA Kenya Chapter is also working on a Mentorship program.

We are working together with the education committee to slot in and have more SheLeadsTech events as well as have more ladies facilitate evening talks and trainings. Another initiative we have planned for is called “Share Your Story” which aims at raising awareness on women in technology and the work they are doing. This will be done through profiling and publishing these stories on our website and social media pages.

How can you be part of this?There are many ways that you can be part of this program

1. At an organization / institution level – You can reach out to us to have a SheLeadsTech event in your organization. It could be a morning talk, lunch hour talk or afternoon/evening talk whichever suits your organization.

2. At a personal level - you can plug into our events and be part of this.

3. If you are a woman in technology or a woman in technology doing amazing work, please get in touch with us so that we can profile them and share their story. It will inspire someone.

4. Volunteer to speak at a conference, deliver a talk or conduct training. From the events calendar shared so far pick an area that you are conversant with then volunteer. The chapter will support you.

ConclusionSheLeadsTech is a program focusing on women but we also need our men counterparts to be our allies in this journey and participate in our events.

Dorine NaloSheLeadsTech Liaison#sheleadstechke

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The ISACA Kenya chapter is focused on making ISACA resources accessible and affordable to university students. One way in which it has done so is by hosting inter-varsity bootcamps targeting students from various Kenyan universities.

The bootcamps deliver training on popular ISACA certifications such as the Cybersecurity Fundamentals (CSX) and Certified Information Systems Auditor (CISA). We provide ISACA certified trainers to facilitate the sessions pro-bono as a way to mentor the next generation of Governance, Audit, Risk and Cybersecurity professionals. The host institutions agree to provide a training venue at no cost. Invitations to attend the bootcamps are extended to all Kenyan universities as a way to build student networks across the country in the profession. Students are requested to pay a nominal fee to cover the cost of ISACA student membership and some administrative expenses.

So far we have successfully held 4 inter-varsity bootcamps at USIU-A, Strathmore, JKUAT and Riara Universities.

The first bootcamp was held at USIU-A in April 2017. The participants were taken through the Cybersecurity Fundamentals (CSXF) and Certified Information Systems Auditor (CISA) curriculum at a fee of only Ksh 10,000/=.

The second was held in January 2018 at Strathmore University. This boot camp exclusively covered Cybersecurity Fundamentals (CSX). ISACA student members only paid Ksh 5,000/= and non-members Ksh 7,000/=.

The third was held in November 2018 at JKUAT at their Nairobi Campus at JKUAT Towers. This boot camp exclusively covered Certified Information Systems Auditor (CISA). ISACA student members paid Ksh 7,000/= and non-members Ksh. 10,000/=.

The fourth was held in May 2019 at Riara University. This boot camp exclusively covered Cybersecurity Fundamentals (CSX). ISACA student members paid Ksh 2,000/= and non-members Ksh. 5,000/=.

ISACA Kenya is looking for partners to host future bootcamps. We have also noticed that the nominal fee charged is still high for many students. We are requesting for organizations to sponsor students directly; for example, any students working as interns in their organizations. We are also seeking organizations to sponsor the inter-varsity bootcamp events by paying the cost of meals and student membership.

If your organization is able to facilitate this please contact us by sending an email to [email protected].

Inter Varsity Bootcamps


Membership & Certifications

Leroy Kayanda No.1

Ms. Agnes Mbaire Maina No.2

Mr. James Gakunga Gatonye No.2

Mr. Cephas Benson Maundu, CISA, CGEIT No.2

Mr. Kevin Waithaka Mugweru No.3

Mr. Alex Miano Muriuki, CISM No.1

Mr. Gilbert Mutua Kiilu No.2

Mr. Kenneth Koome Kithinji, CISM No.3

Mr. Kenneth Goga Riany, CISA, CISM, CRISC No.1

Mr. Lumumba Juma No.2

Mr. Ibrahim Juma, CISA, CISM, CGEIT, CRISC No.1

Mr. Michael Lusinde Mbwavi, CISA No.2

Mr. Cephas Benson Maundu, CISA, CGEIT No.3

584

151

67

25

13

Number of Certified Members Members in numbers

2017 2018 2019 2020

1456

1386

14903000

CISA

CISM

CRISC

CGEIT

Top Scorers for the 2018 October- 2019 January

Newly certified members

CISA CISM CRISC CGEIT

2018 & 2019 2018 2018 & 2019 2018 2018 & 2019 2018 2018 & 2019 2018

134 75 37 25 24 16 12 8

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Annual Conference

The 2019 ISACA Kenya Annual Conference was held between 10-12 April 2019 at Pride Inn Paradise Convention Centre. The conference was themed “Enabling Digital Transformation”. The theme reflects the innovation and new business models due to the dynamic technological landscape. The conference was well attended and recorded its highest number of attendees, 300 delegates, since inception of the Chapter.


#isacake20

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20 Year AnniversaryThe chapter celebrated 20 years of existence and this was culminated by a dinner and cake-cuttingceremony during the Annual Conference on the night of 11 April 2019 at Pride Inn Paradise Convention Centre.


2019 Events Calendar

June10 – 14 IT Audit (Technical) Workshop – Beginners // Mombasa // 35 CPE hrs

24 – 28 Data Analytics for Business Performance- Financial (Hands on Training) // Mombasa // 35 CPE hrs

July15 -19 Cyber Security Hands- On Workshop //Mombasa // 35 CPE hrs

25 Cryptocurrency Integrations – Risks & Opportunities //Nairobi // 2 CPE hrs

August5 – 9 IT Audit (Technical) Workshop // Nairobi // 35 CPE hrs

26 – 28 Operating Systems Auditing // Mombasa // 17 CPE hrs

28 – 30 Network Infrastructure Auditing // Mombasa // 17 CPE hrs

31 #WeAreISACA Sustainable Technology Innovation through Enterprise Architecture // Nairobi // 3 CPE hrs

September2-6 CISM/CRISC/CGEIT Exam Review // Nairobi // 35 CPE hrs

12 Collaborative Security Through CIRTS // Nairobi // 2 CPE hrs

16-20 CISA Inter-varsity Bootcamp // University of Nairobi // 35 CPE hrs

25-27 Building Resilience through a Comprehensive Business Continuity Program (Training) // Mombasa // 21 CPE hrs

October3 The Digital Transformation: Delivering Service to Millennial Clients // Nairobi

// 21 CPE hrs

14-15 COBIT 5 Foundation Course // Kisumu // 14 CPE hrs

16-18 Governance Risk & Compliance (GRC) Conference // Kisumu // 21 CPE hrs

November9 Cloud Computing Assurance// Nairobi // 3 CPE hrs

11-15 Cyber Security Hands- On Workshop // Mombasa // 35 CPE hrs

December2-6 Data Analytics for Business Performance- Financial (Hands-on Training)

Kisumu // 35 CPE hrs

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2018 Financial Statements


INFORMATION SYSTEMS AUDIT & CONTROL ASSOCIATION (ISACA Kenya Chapter)

Annual Report and Financial Statements for the year ended 31 December 2018

ASSOCIATION INFORMATION

Board Raymond Kiprotich Bett - President

Anthony Mwangi Muiyuro - Vice President

Christine Lilian Mukhongo - Secretary

Fredrick Okong’o Ouma - Treasurer

Lucy Wanjiru Muiruri - Certification Co-ordinator

Martin Kilungu - Membership Director

Aprielle Oichoe - Research Director

Paula Musuva Kigen - Academics Co-ordinator

Denis Muli Mutinda - Immediate Past President

Chief Executive Officer Preston Odera.

Principal Bankers Commercial Bank of Africa Ltd

Mara & Ragati Road, Upper Hill

P.O. Box 30437 - 00100,

Nairobi.

Kenya Commercial Bank Ltd

Moi Avenue; Branch

P.O. Box 30081 - 00100,

Nairobi.

Registered Office Vision Plaza, Mombasa Road,

3rd Floor, Suite 4,

P.O. Box 10384 - 00100,

Nairobi.

Independent Auditor Nyikuli & Associates

Certified Public Accountants

P.O. Box 60592, 00200

Nairobi, Kenya

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The directors submit their report together with the Audited Financial Statements for the year ended 31st December 2018, which disclose the state of affairs of the Association.

Incorporation

The Association is incorporated in Kenya under the Kenyan Societies Act, and is domiciled in Kenya. The address of the registered office is as set out on page 2.

Incorporation

ISACA Kenya (“The Chapter”) is a not-for-profit, non-union association of professionals in the IT-related industry founded in Kenya in December 1999 by a small group of volunteers. The chapter was locally registered in Kenya in April 2000 and has since experienced tremendous growth in membership, once earning global recognition for achieving the second highest annual percentage growth in membership worldwide. The Chapter also won the K Wyne Snipes award in 2016 as very large Chapter in Africa.

Results

The Association made a surplus of Ksh 3,150118 during the year as shown in the statement of income.

Directors

The Chapter Officials who held office during the year and to the date of this report are set out below:

Raymond Kiprotich Bett - President

Anthony Mwangi Muiyuro - Vice President

Christine Lilian Mukhongo - Secretary

Fredrick Okong’o Ouma - Treasurer

Lucy Wanjiru Muiruri - Certification Co-ordinator

Martin Kilungu - Membership Director

Aprielle Oichoe - Research Director

Paula Musuva Kigen - Academics Co-ordinator

Denis Muli Mutinda - Immediate Past President

Auditors

During the year, Nyikuli & Associates were reappointed as the Association’s auditors and have expressed their willingness to continue in office.

By order of the board

President Board Member

Nairobi…………………………………….. 2019




STATEMENT OF DIRECTORS RESPONSIBILITIES

The Kenyan Societies Act requires the Board to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the Association as at the end of the financial year and of its operating results for that year. It also requires the directors to ensure that the Association maintains proper accounting records which disclose, with reasonable accuracy, the financial position of the Association. The directors are also responsible for safeguarding the assets of the Association.

The director’s accept responsibility for the financial statements, which have been prepared using appropriate accounting policies supported by reasonable and prudent judgements and estimates, in conformity with International Financial Reporting Standards and the requirements of the Kenyan Societies Act. The director’s are of the opinion that the financial statements give a true and fair view of the state of the financial affairs of the Association as at 31st December 2018 and of its results for the year then ended. The director’s further accept responsibility for the maintenance of accounting records which have been relied upon in the preparation of the financial statements, as well as on the adequacy of the systems of internal financial controls.

Nothing has come to the attention of the director’s to indicate that the Association will not remain a going concern for at least the next twelve months from the date of this statement.

Approved by the board of directors on …………………….2019 and signed on its behalf by:


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39% Conferences 40%

38% Capacity Building (Review Course/Trainings) 36%

22% Members Subscription 23%

1% Other Incomes (Manuals) 0%

0% Evening & Breakfast Talks 0%

0% Exchange Gain (Loss) 1%

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

9000000

10000000

Valu

e in

Ksh

.

Expense Items

Expenses Comparison Chart

2018 2017

0 2000000 4000000 6000000 8000000

0 10000002000000300000040000005000000600000070000008000000

2018

2017

0 2000000 4000000 6000000 8000000

0 10000002000000300000040000005000000600000070000008000000

2018

2017

2018 Income

Assets Growth

Expenses Comparison Chart

0 2000000 4000000 6000000 8000000

0 10000002000000300000040000005000000600000070000008000000

2018

2017

2017 Income

Consolidated and Combined Financial Statements

Property & Equipment

Accounts Recievables

Dues from ISACA

Deposits & Prepayments

Cash & Bank Balances




STATEMENT OF INCOME

2018 2017

Note Shs Shs

Income 7 31,507,328 23,545,780

Expenses:

Administrative Expenses 8 (a) 27,016,743 20,382,559

Other Operating Expenses 8 (b) 1,284,880 1,182,177

Total Expenses: 28,301,623 21,564,736

Operating Surplus (Deficit) 3,205,704 1,981,045

Finance Costs 9 55,586 59,447

3,150,118 1,921,598

Prior years adjustments 10 - (1,038,217)

Net Surplus (Deficit) 3,150,118 883,381

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STATEMENT OF FINANCIAL POSITION

2018 2017

ASSETS Note Shs Shs

Non-Current Assets

Property & Equipment 11 645,117 754,292

Current Assets

Accounts Recievables 12 (a) 7,345,664 4,722,110

Dues from ISACA 12 (b) 765,607 748,463

Deposits & Prepayments 196,400 150,000

Cash & Bank Balances 13 1,474,644 1,432,828

9,782,315 7,053,401

TOTAL ASSETS 10,427,433 7,807,693

FINANCED BY

Accumulated Fund 14 8,081,474 4,931,356

Current Liabilities

Account Payable 15 2,345,959 2,876,337

TOTAL CAPITAL & LIABILITIES 10,427,433 7,807,693

The financial statements on pages 6 to 14 were approved for issue by the board of directors on …………………………….. 2019 and were signed on its behalf by:





STATEMENT OF CHANGES IN EQUITY

Accumulated fund

Shs

At 1 January 2017 4,047,976

Net Surplus (Deficit) 883,381

At 31 December 2017 4,931,357

At 1 January 2018 4,931,357

Net Surplus (Deficit) 3,150,118

At 31 December 2018 8,081,474

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STATEMENT OF CASHFLOWS

2018 2017

Note Shs Shs

Cash flows from Operating Activities

Surplus (Deficit) Before Tax 3,150,118 1,921,598

Adjustments for: (1,038,217)

Depreciation 11 109,175 132,063

Operating deficit before Working Capital changes 3,259,292 1,015,444

Decrease / (increase) in:

- Trade and other receivables (2,687,098) (2,734,070)

Increase / (decrease) in:

- Trade and other payables (530,378) 1,142,136

Cash generated from Operations 41,816 (576,491)

Net cash generated from Operating Activities 41,816 (576,491)

Cash flows from Investing Activities

Purchase of Property Plant & Equipment 11 - -

Net cash (used in) Investing Activities - -

Cash flows from Financing Activities

Members contributions -

Net cash generated from Financing Activities - -

Net (decrease) in cash and cash equivalents 41,816 (576,491)

Cash and cash equivalents at 1st January 1,432,828 2,009,318

Cash and cash equivalents at 31st December 13 1,474,644 1,432,828


NOTES

1. Accounting policies The principal accounting policies adopted in the preparation of these financial statements are set out below:

a) Basis of Preparation The financial statements are prepared in compliance with International Financial Reporting Standards under the historical cost convention, and are presented in the functional currency, Kenya Shillings (Shs). The preparation of financial statements in conformity with International Financial Reporting Standards requires the use of estimates and assumptions. It also requires management to exercise its judgement in the process of applying the accounting policies adopted by the Association. Although such estimates and assumptions are based on the directors’ best knowledge of the information available, actual results may differ from those estimates.

b) Revenue recognition Income represent Members subscription, Members training and conferences.

2. Financial liabilities All financial liabilities including borrowings are recognised initially at fair value plus the transaction costs and subsequently carried at amortised cost using the effective interest method.

3. Receivables Receivables are recognised initially at fair value and are subsequently measured at amortised cost using the effective interest method. A provision for impairment is recognised in the profit and loss account in the year when recovery of the amount due as per the original terms is considered doubtful. The provision is based on the difference between the carrying amount and the present value of the expected cash flows, discounted at the effective interest rate. Receivables not collectable are written off against the related provisions. Subsequent recoveries of amounts previously written off are credited to the profit and loss account in the year of recovery.

4. Cash and cash equivalents Cash and cash equivalents include cash in hand, term and call deposits with banking institutions and other short-term highly liquid investments in money market instruments with maturities of three months or less from the date of acquisition net of bank overdrafts. In the balance sheet, bank overdrafts are included as borrowings under current liabilities.

5. Property and equipment All categories of property and equipment are initially recognised at historical cost. All other items of property and equipment are stated at historical cost less accumulated depreciation and accumulated impairment losses. Subsequent costs are included in the asset’s carrying value only when it is probable that future economic benefits associated with the item will flow to the Association and the cost of the item can be measured reliably. Repairs and maintenance is charged to the profit and loss account in the year to which it relates. Depreciation is calculated using the reducing balance method to write down the cost of each asset to its residual value over its estimated useful life using the following annual rates:

Rate - %

Furniture & fittings 12.5%

Office Partitions 12.5%

Computers, copiers & faxes 30%

INFORMATION SYSTEMS AUDIT & CONTROL ASSOCIATION (ISACA Kenya Chapter) Annual Report and Financial Statements for the year ended 31 December 2018

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The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.

Gains and losses on disposal of property and equipment are determined by reference to their carrying amount and are taken into account in determining operating profit.

6. Critical accounting estimates and judgements The Association makes estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial period. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including experience of future events that are believed to be reasonable under the circumstances.

7. Income 2018 2017

Kshs Kshs

Conferences 12,447,911 9,306,298

Capacity Building (Review Course/Trainings) 11,892,936 8,482,396

Members Subscription 6,886,637 5,462,738

Other Incomes - Manuals - 57,200

Evening & Breakfast Talks 394,062 224,500

Exchange Gain (Loss) (114,218) 12,648

Totals 31,507,328 23,545,780


8.

Total other operating expenses 1,284,880 1,182,177

9. Finance Costs

Bank Charges 55,586 59,447

Total Finance Costs 55,586 59,447

Expenses Charged in the Statement of Income 2018 2017

Kshs Kshs

a) Administrative Expenses

Employment:

Salaries 3,528,043 2,738,315

NSSF 51,840 84,240

Nita-subscription 12,400

Staff welfare 51,826 45,000

Total Employment Costs 3,644,109 2,867,555

Other Administration Expenses:

Local Conferences 7,841,786 7,509,856

Capacity Building Review Course Expenses 9,456,945 5,048,932

Leadership Conference Expenses 1,585,400 1,794,291

Board & Committee meeting expenses 1,721,224 1,262,440

Postal & Courier 329,262 158,300

Marketing & Advertising 691,534 193,071

AGM Expenses/Meals & Entertainment 678,134 528,896

Consultancy services 125,400 233,400

Purchase of Manuals - 114,098

Evening Talk & Breakfast 170,199 148,823

Depreciation for the year 109,175 132,063

Printing & Stationery 44,225 23,269

Telephone costs 84,097 49,223

Office expenses 267,824 48,245

Web Development & Internet cost 138,828 112,142

Audit Fee 46,400 34,800

Insurance 20,091 43,274

Business Permits 33,190 31,460

Accounting fees 13,920 13,920

Filling Annual Returns 15,000 15,000

Repairs and Maintenance - 19,500

Total other administration expenses 23,372,634 17,515,003

Total Administrative Expenses 27,016,743 20,382,558

(b) Establishment:

Office Rent; Service Charges & Rates 1,284,880 1,182,177

32 |

10. Prior years adjustments 2018 2017

KSHS KSHS

Overstatement in Output VAT 1,038,217

Income adjustment due to output VAT (VAT payable) having been included in income declared as reflected below:

Overstatement in year: 2014 25,625

2015 589,950

2016 422,642

1,038,217

11. Property and Equipment

2018 Furniture & Equipment

Office Partitions Computers & Accessories

Total

12.5% 12.5% 30%

Cost

Balance B/f 1,060,351 755,143 277,521 2,093,015

Total at Cost (Ksh) 1,060,351 755,143 277,521 2,093,015

Depreciation

Depreciation B/f 650,608 495,669 192,447 1,338,723

Charge for the year 51,218 32,434 25,522 109,175

Total Depreciation 701,826 528,103 217,969 1,447,898

Net Book Value (Ksh) 358,525 227,040 59,552 645,117

2017 Furniture & Equipment

Office Partitions Computers & Accessories

Total

12.5% 12.5% 30%

Cost

Balance B/f 1,060,351 755,143 277,521 2,093,015

Total at Cost (Ksh) 1,060,351 755,143 277,521 2,093,015

Depreciation

Depreciation B/f 592,073 458,601 155,986 1,206,660

Charge for the year 58,535 37,068 36,461 132,063

Total Depreciation 650,608 495,669 192,447 1,338,723

Net Book Value (Ksh) 409,743 259,474 85,075 754,292


12 (a) Trade and other receivables 2018 2017

Shs Shs

Accounts Receivable 6,298,785 4,722,110

With holding taxes 1,046,879

7,345,664 4,722,110

Deposit for office rent 196,400 150,000

13 (b) Due from ISACA

These consists of Chapter dues paid along with ISACA membership renewals directly to the International headquarters. The funds are not in an Interest earning account but they are available to the local chapter on demand. The net balance as at 31st December 2018 was Usd.7,416 translated in Kenya Shillings as at the closing date as shown below:

2018 2017

Usd Exc. Rate SHS SHS

Net Balance $7,416 100.92 765,607 748,463

14. Cash and cash equivalents

Bank Balance 1,299,612 1,295,972

MPESA Account 84,069 133,725

Petty Cash 26,763 3,130

Credit Card 64,200

1,474,644 1,432,828

15. Accumulated Fund

Opening Balance 4,931,356 4,047,976

Prior Period Adjustments (1,038,217)

Surplus (Deficit) for the Year 3,150,118 1,921,598

Closing Balance 8,081,474 4,931,356

16. Trade and other payables

Creditors: Nyikuli & Associates 60,320 48,720

Accounts Payable 2,200,426 721,265

Accrued VAT (2017) - 996,836

Accrued VAT (2014, 2015, 2016) Note 15 - 1,038,217

Accruals-Statutory Deductions 85,213 71,299

Total Payables 2,345,959 2,876,337

In the opinion of the Directors, the carrying amounts of the current portion of Payables approximate to their fair value. Fair values are based on discounted cash flows using a discount rate based on the weighted average cost of capita that directors are expected to be applicable to the company at balance sheet date.

34 |

ISACA Kenya Committees

The following are the volunteers who serve on the various ISACA Kenya Chapter Committees:

Name Position

George Njuguna Chairperson

Mercy Omollo Secretary

Brian Kombanira Member

Clare Situma Member

Veronica Rose Member

Name Position

Rosalind Murithi Chairperson

Benjamin Muraguri Secretary

David Kanyi Member

Raphael Onyango Member

Grace Soprin Amurle Member

Name Position

Bonface Asiligwa Chairperson

Benadette Wanjiru Njoroge Secretary

Wilson Ochieng Ogutu Member

Faith Wawira Nyaga Member

Catherine Kathuni Member

Name Position

Dorine Akinyi Nalo Chairperson

Eunice Acheda Member

Caroline Gaturi Ndege Member

Audit and Risk (ARC) Committee

Education Committee

SheLeadsTech Committee

Communications Committee

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