chuna sacco society limited registration number: …

CHUNA SACCO SOCIETY LIMITED

REGISTRATION NUMBER: CS/2466 Financial Statements for the year ended 31 December 2017

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Index

The reports and statements set out below comprise the financial statements presented to the

shareholder: Index Page

Table of Contents

SOCIETY INFORMATION ...................................................................................................................... 3

Statistical Information ........................................................................... Error! Bookmark not defined.4

Report of the Board Of Directors .......................................................... Error! Bookmark not defined.5

Chairman’s Report ............................................................................... Error! Bookmark not defined.6

Statement of the Board of Directors ...................................................... Error! Bookmark not defined.6

Independent Auditor’s Report ............................................................................................................... 7

Statement of Comprehensive Income .................................................................................................. 10

Statement of Financial Position ........................................................... 11Error! Bookmark not defined.

Statement of Changes in Equity ........................................................................................................... 12

Cash flow Statement ............................................................................................................................ 13

Appropriation Account........................................................................................................................ 14

Accounting Policies ............................................................................................................................. 15

Property, Plant & Equipment ............................................................................................................... 16

Notes to the Financial Statements Continued…………………. ........................................................... 17

Notes to accounts (Cont.)…………………. ........................................................................................... 25

Level of assurance

These financial statements have been audited in compliance with the applicable requirements

of the Sacco Societies Act No. 14 of 2008 and the International Financial Reporting Standards

(IFRS).

Prepared by: FINANCE DEPARTMENT, CHUNA SACCO SOCIETY LIMITED

Published

22nd March 2018



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SOCIETY INFORMATION

Board members

Dr. James M. Kahunyo Chairman Dr. George O. Abong Vice Chairman Mr. George Onyara Treasurer Mr. Wycliff O.Ogal Hon. Secretary Mr. John Wasike Member Mr. Jack O. Omondi Member Ms. Marilyn Nabakwe Member Mr. Nicodemus Muia Member Ms. Zilper A. Owour Member Supervisory Committee Mr . Joseph Esau Chairman Mr. Devanson Nyakoi Secretary Mr .George Guthaiya Member Registered office CHUNA CO-OPERATIVE SAVINGS & CREDIT SOCIETY LTD.

P.O.Box 30197-00100 Nairobi.

Principal Bankers BANK ACCOUNTS 1. Co-operative Bank of Kenya Ltd NAME ACCOUNT NO.

University Way Branch, Nairobi CHUMBEFU CURRENT 01120062565200

SCHOOL FEES 01120062565201

MAIN CURRENT 01120062565202

FOSA CURRENT 01120062565205

ATM SETTLEMENT 01120062565299

2. Barclays Bank University Way Branch, Nairobi CHUNA SACCO 2036640165

Auditors NELSON AND FRANCIS ASSOCIATES 6TH FLOOR, KVDA BUILDING OLOO STREET P.O.BOX 6797-30100 ELDORET

Ag.CEO (Audit period) CPA. Peter K. Mbogo

Current CEO

Martin Ogola P.O.Box 30197-00100 Nairobi.



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2017 2016 2015 2014 2013

Number of members -Active

3,582 3,982 4146 4032 4432

- Dormant

61 96 118 176 106

- Total

3,643 4,078 4,264 4,208

4,538

Kshs Kshs Kshs Kshs Kshs

Financial

Total Assets

2,099,238,391 2,303,774,141

2,010,255,141

1,925,519,194

1,740,316,114

Members Deposits

1,562,725,473 1,629,759,877

1,364,215,288

1,296,255,998

1,191,962,494

External borrowings

286,250,033 424,583,333

355,142,633

378,781,316

320,302,226

Loan & Advances to members

1,198,300,522 1,495,918,276

1,946,930,199

1,852,294,870

1,708,456,109

Investments

15,900,265 15,875,820

15,875,820

13,411,000

13,411,000

Core capital

229,354,117 223,972,288

216,186,300

184,616,175

159,257,339

Share Capital

168,181,011 165,654,203

158,535,693

142,053,447

119,064,220

Institutional capital

61,173,106 58,318,086

57,650,607

42,562,728

40,193,119

Total revenue

180,213,514 223,402,872

226,013,887

214,715,812

204,724,247

Total interest income

154,423,879 196,340,752

208,115,087

196,300,891

186,955,522

Total expenses

177,103,794 222,175,955

194,878,403

192,013,931

183,987,178

Employees of the SACCO

20 19 20 20 20

Key Ratios

Capital adequacy ratios

Core Capital/Total assets 11% 10% 10.75% 9.59% 9.15%

Core Capital/Total deposits 15% 14% 15.85% 14.24% 13.36%

Institutional capital/Total assets 3% 3% 2.87% 2.21% 2.31%

Liquidity ratio Liquid assets /Total deposits& long

term liabilities 1% 6% -85.48 -1.74 -4.08

Operating Efficiency/Loan quality ratio

Total expenses/Total revenue 98% 99% 86% 89% 90%

Interest on members deposits/Total

revenue 8% 7% 20% 21% 26%

Interest rate on member's deposits 1% 1% 3.40% 3.60% 4.50%

Dividend rate on members' share capital 0% 0% 10% 10% 10%

Total delinquent loan/Gross loan

portfolio 1% 2% 0.10% 0.10% 0.10%

Loan portfolio/Non-withrawal deposits

0.79 0.95 1.40 1.49 1.50



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Independent Auditor’s Report To the members of Chuna Sacco Society Limited

We have audited the financial statements of Chuna Sacco Limited which comprise the

statement of financial position as at 31st December 2017, statement of surplus or deficit and

other comprehensive income, statement of changes in equity and statement of cash flows for

the year then ended, including summary of significant accounting policies and other

explanatory information as set out on pages 11 to 25, in accordance with International

Financial Reporting Standards (IFRSs) and the requirements of the Kenyan SACCO Societies

Act.

The Board of Directors’ Responsibility for the Financial Statements

The Board of Directors of the Society is responsible for the preparation and fair presentation of

these financial statements in accordance with International Financial Reporting Standards

and in manner required by the Kenyan SACCO Societies Act. Requirements of the Kenyan

Sacco Societies Act and for such international control as the directors determine is necessary to

enable the preparation of financial statements that are free of material misstatement, whether

due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an independent opinion on these financial statements based

on our audit. We conducted our audit in accordance with International Standards on Auditing.

Those standards require that we comply with ethical requirements and plan and perform the

audit to obtain reasonable assurance as to whether the financial statements are 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 depend on the auditor’s

judgment, including the assessment of the risks of material misstatement of the financial

statements, whether due to fraud or error. In making those risk assessments, the auditor

considers the internal control relevant to the society’s preparation and fair presentation

of the financial statements in order to design audit procedures that are appropriate in

the circumstances, but not for the purpose of expressing an opinion on the effectiveness of

society’s internal control. An audit also includes evaluating the appropriateness of

accounting policies used and the reasonableness of accounting estimates made by the

Board of Directors, as well as evaluating the overall presentation of the financial statements.



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We believe that the audit evidence we have obtained is sufficient and appropriate to provide

a basis for our audit opinion.

Basis for Opinion

During the year under review cash & Cash equivalent of Ksh 413,930 as per note (3),

comprises treasury account and bank balances, over which there was no system of internal

control on which we could rely for the purpose of our audit.

There were no other satisfactory audit procedures that we could adopt to satisfy ourselves

that the recorded cash & cash equivalent was free from material misstatements.

Our Opinion

In our opinion, except for the effects of such adjustments, if any, as might have been

determined to be necessary had we been able to satisfy ourselves as to cash & cash

equivalent, the accompanying financial statements present fairly, in all material respects,

the financial position of the Society as at 31st December, 2017, and of its financial

performance and its cash flows for the year then ended in accordance with International

Financial Reporting Standards (IFRSs) and the requirements of the Kenyan SACCO Societies

Act.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement were of most

significance in our audit of the financial statements of the current period. These matters were

addressed in the context of our audit of the financial statements as a whole, and informing out

opinion there on and we do not provide a separate opinion on these matters.

Other Assets Balances-Un reconciled Loans & Deposits

The society engaged Sam & Associates auditor consultant to execute the forensic

implementation report of 2016. The objective of this exercise was to restore book balances

through a comprehensive Loan balances reconciliation that covered the period 2016 and

earlier. The outcome of this exercise resulted in prior period adjustments.

We reviewed the management report emanating from forensic report and stumbled into un-

reconciled data being not part of forensic report in the amount of sh64.765,619 throwing into

doubt of the accuracy of content of report filed by the consultant, as per note 5(ii). We have

therefore spent significant effort in addressing this matter.



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Statement of Comprehensive Income

2017 2016

Kshs Kshs

Interest from bank, loans & advances 16 154,423,879 196,340,752

Total interest 154,423,879 196,340,752

Interest expenses 17 58,961,826 80,274,505

Net interest income 95,462,054 116,066,247

Other operating income 18(i) 15,955,823 13,876,263

Investment Income 18(ii) 9,833,812 12,840,617

Total Income 121,251,689 142,783,127

Administrative Expenses 20 (i&ii) (70,363,964) (78,663,335)

Other operating Expenses 20 (iii &iv) (49,778,005) (63,238,114)

Net operating Surplus /(Deficit) before income tax 1,109,720 881,678

Income tax expense (254,700) (214,200)

Surplus/(Deficit) for the year 855,020 667,478

20% Transfer to Statutory Reserves 171,004 133496

Retained Earnings(Appropriation a/c) 684,016 533,982

Non Mutual Income Nil Nil



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Statement of Changes in Equity

Share

Capital

Statutory

Reserves

Retained

Earnings

General

Reserves

Share

Transfer

Reserves

Bonus

Shares

Reserves

Proposed

Dividends Total

Kshs Kshs Kshs Kshs Kshs. Kshs Kshs. Kshs.

2016

Balance as at

01.01.2016

158,535,693

26,742,957

8,143,815

22,763,836 2,100,000

-

-

196,522,600

Surplus/(Deficit)

-

-

-

-

-

-

- (16,543,483)

Transfers during the

year

-

133,496

533,982

-

-

-

15,853,569

8,460,484

Prior year adjustment

-

-

-

-

-

2,464,820

-

-

Receipts/(refunds)in

the year

7,118,510

-

-

- (2,100,000) - (15,853,569)

4,527,331

Balance as at

31.12.2016

165,654,203

26,876,453

8,677,797

22,763,836

- 2,464,820

-

226,437,109

2017

Balance as at

01.01.2017

165,654,203

26,876,453

8,677,797

22,763,836

-

2,464,820

-

226,437,109

Prior year

adjustments - - 345,240 - - - - 345,240

Transfers during the

year

-

171,004

684,016

-

- - -

16,021,811

Receipts in the year

2,526,808 - - -

- -

-

2,526,808

Balance as at

31.12.2017

168,181,011

27,047,457

9,707,053

22,763,836

- 2,464,820 -

230,164,177



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Cash flow Statement

2017 2016

NOTES Kshs Kshs

Cash flow from operating activities Interest receipts 16 154,423,879 195,460,752

Interest Payments 17 (43,795,035) (64,546,348)

Other operating Income 18(i) 15,955,823 -

Payment to employees and suppliers 20 (76,610,258) (244,385,892)

49,974,410 (113,471,488)

(Increase)/Decrease in Operating Assets Net Loans to Members 6 297,617,754 (11,103,164)

Trade & other receivables 4 & 5 (139,871,637) 57,766,579

157,746,117 46,663,415

Deposit from Members 8 (67,034,403) 64,647,164

Trade & Accrued Expenses 10 (6,029,481) 479,861

Sundry Creditors 10 - (721,432)

(73,063,885) 64,405,593 Net Cash From Operating Activities Before Tax 134,656,642 (2,402,480) Income Tax Paid - Net Cash flow from operating Activities 134,656,642 (2,402,480) Cashflow From Investing Activities Purchase of Property & Equipment 2 - (10,971,935)

Purchase of Investment Securities 5 24,445 -

Dividends & Interest from Investments 18(ii) 9,553,812 43,773,438

Net Cash From Investing Activities 9,578,257 32,801,503 Cash flow From Financing Activities Share Capital Contributions 12 2,526,808 7,118,510

Proceeds from Long Term Borrowings 7 - 500,000,000

Repayment of Long Term Borrowings 7 (138,333,300) (430,559,300)

Dividends/Interest Paid 9 (11,500,180) (60,293,330)

Net Cash From Financing Activities (147,306,672) 16,265,880 Net Change in Cash & Cash Equivalent (3,071,773) 46,664,903

Cash & Cash Equivalent at the beginning of the year 3 3,485,703 (43,179,200) Cash & Cash Equivalent at the End of the Year 413,930 3,485,703



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Appropriation Account

2017 2016

Notes Kshs Kshs

Turnover 180,213,514 223,402,872

Surplus before tax- 1,109,720 881,678

Provision for tax 254,700 214,200

Surplus after tax 855,020 667,478

20% Statutory reserve 171,004 133,496

Proposal for dividend - -

Proposal for honoraria - -

General reserves - -

Share transfer reserves - -

Totals 171,004 133,496

Retained for the year 684,016 533,982

Statement of Retained Surplus /(Loss)

Balance brought forward 8,677,797 8,143,815

Retained for the year 684,016 533,982

Balance carried forward 9,361,813 8,677,797



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Accounting Policies

NOTES AND OBSERVATIONS ON ACCOUNT FOR THE PERIOD ENDED 31.12.2017

The financial statements are prepared in accordance with international financial reporting

standards. The accounting policies adopted in the preparation of these financial statements

remain unchanged from the previous years. The Society's accounting policies are as set out

below:

(a) Basis of accounting

The financial statements are prepared under the historical cost basis of accounting.

(b) Revenue collection

Interest income is accrued on a time basis on the basis of outstanding balances.

(c) Taxation

The organisation being a Savings and Credit Society is subject to no taxation on the

income generated out of the society's business with its members and half of the income

generated from the society's investments.

(d) Share capital

The Society has issued share capital of Kshs 20/= per share.

(e) Entrance fees

Entrance fee is payable by all members joining the Society at an agreed amount by the

Board.

(f) Members benefits

Members’ benefits comprise of dividends on shares capital and interest on members

deposits whenever surplus is declared out the Society's yearly operations.

(g) Statutory reserve

Transfers are made to statutory reserve account at rate of 20% of the net operating surplus

after taxation in accordance with Co-Operative Societies Act (Cap 490).

(h) Depreciation

Non-current assets are depreciated annually on reducing balance basis using the following

rates:

Improvement on building at UoN 2.5%

Land Nil

Computers 30.0%

Equipment, Furniture & Fittings 12.5%



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Property, Plant & Equipment

Note. 2

Improvement Computers Equipment Total

on Building Furniture

at University & Fittings

Kshs Kshs Kshs Kshs

As at 01.01.17

2,369,575

47,045,232

12,142,334

61,557,141

Additions - - - -

Disposal - - - -

2,369,575

47,045,232

12,142,334

61,557,141

Depreciation

As at 01.01.17

791,302

27,410,146

8,526,564

36,728,012

Charge for year

39,018

5,307,364

426,837

5,773,219

Depreciation on Disposed

Computers - - - -

As at 31.12.17

830,320

32,717,510

8,953,401

42,501,231

Net Book Value

As at 31.12.17

1,539,255

14,327,722

3,188,933

19,055,910

As at 31.12.16

1,578,273

19,635,086

3,615,770

24,829,129



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Notes to the Financial Statements Continued………………….

2017 2016

Restated

Kshs Kshs

3 Cash & Cash Equivalent Main current account 39,472 (261,692)

ATM Settlement account (3,397,249) (6,283,451)

FOSA account -Cash at Bank 1,925,882 2,285,369

Treasury account 870,829 701,470

Statutory reserve account - 42,520

School fees current account (1,409,693) 1,824,193

Chumbefu current account 750,017 399,131

Co-op personal loan current account (629,994) (333,274)

Barclays Bank 2,313,706 4,987,160

Investment cash at bank 43,300 44,400

Dividend current account (92,341) (27,532)

Liquidity reserve account - 107,407

Total Cash & Cash Equivalent 413,930 3,485,701

4 Trade & Other receivables Deductions receivable 106,859,901 64,901,063

Utmost Insurance Brokers. -Unpaid Claims 10,473,450 9,268,751

Other Debtors - 595,251

Staff Provident Fund - 535,000

SPF Employee - 1,580,309

Prepaid - Work Injury Benefit Act (WIBA) 1,517,175 2,234,300

Prepaid - Insurance on equipment 745,834 992,397

Oscar Ndula - PAYE - 602,133

Prepaid Staff group life - 1,781,600

Prepaid - Insurance on cash in transit 266,359 1,303,042

Prepaid - ATM card processing fee 662,575 807,275

Prepaid - Insurance on loans 5,149,942 8,234,610

Coop Bank - 6,812,900

Savings A/c 41,187,662 41,187,662

Interest on Savings Receivable (Coop Bank) 4,166,581 4,560,000

Dividends Receivable (KUSCCO) 72,665 97,110

Dividends Receivable (CIC) 280,000 150,000

Chuna Housing Society 10,300 10,300

Chumbefu Deficit 25,584,272 Total 196,976,715 145,653,703

Disclosure: CHUMBEFU Fund account balance (Deficit) Note 14, has been treated as

a receivable since the fund is not a trading activity. Notes to accounts (Cont.)………………….



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2017 2016

Kshs Kshs

5 (i) Non-current assets held for sale (a) Co-Operative Bank of Kenya Ltd. 13,875,820 shares 13,875,820 13,875,820

(b) Co-Operative Insurance Company Ltd. 77,000 shares of Kshs 20/- each 1,540,000 1,540,000

(c) KUSCCO Ltd. 4,744 shares of Kshs 100/- each 474,445 450,000

(d) CAK LTD 100 shares of Kshs 100/- each 10,000 10,000

Total 15,900,265 15,875,820

5 (ii) Other Assets – un-reconciled loan and deposits Balance B/F 618,012,513 663,012,513

Opening balance Adjustments 23,783,006 -

Un-reconciled Balance 64,765,619 -

Totals 706,561,138 -

Less; Provision for Other Assets 46,500,000 45,000,000

Closing Balance 660,561,138 618,012,513

Opening balance Adjustments: Represent an amount brought forward to year 2017 but was not included in the year

2016 Audited accounts. Un-reconciled Balance. This has been discovered as the difference between the ledger balance and Normal loan Listing as

at 1st January 2017 whose reconciliation is being done.

5 (iii) Bad Debt Coop Bank (Note 4) 6,812,900 -

Other debtors (Note 4) 595,251 -

Chuna Investment Shares (Note 10) (33,000) -

Totals 7,375,151 -

Less; Provision for bad debts 1,000,000 -

Closing Balance 6,375,151 -

The amounts shown as Bad debts was declared irrecoverable by SASRA and Auditors in year 2016

Audited accounts and recommended for write off. It is being amortized in seven year at the rate of

kshs 1,000,000 per year.

Note to accounts (cont.)…………….

6 Loans to members



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(a) CHUNA loans Balance brought forward 1,495,918,275 1,484,815,110

Disbursed in the year 366,195,318 458,001,848

Collected in the year (649,933,418) (470,019,844)

Less Provision for loan loss (13,879,653) (23,121,161)

Balance carried forward 1,198,300,522 1,495,918,275

Loan Category Performing 1,189,619,589 1,445,116,464

Watch 27,634,251 22,825,171

Substandard 36,611,808 32,696,033

Doubtful 4,885,470 9,191,747

Loss 902,253 9,210,021

1,212,180,175 1,519,039,436

Loan Provision Performing - -

Watch 1,381,713 1,141,259

Substandard 9,152,952 8,174,008

Doubtful 2,442,735 4,595,873

Loss 902,253 9,210,021

Total 13,879,653 23,121,161

Net Loan To Members 1,198,300,522 1,495,918,275

7 Interest bearing liabilities Kshs Kshs

Co-op Bank - Working Capital Loan Opening Balance 424,583,333 355,142,633

Additional Borrowings - 500,000,000

Loan Repayment (138,333,300) (430,559,300)

Closing Balance carried forward 286,250,033 424,583,333

The loan is from Co-operative Bank of Kenya. Kshs. 160M, and Kshs.340M disbursed

on 17th march, 2016 and 24th June, 2016 respectively.

8 Members deposits Non-Withdrawable Deposits Members personal accounts Balance B/f 1,572,815,738 1,522,180,984

Movement (56,136,645) 50,634,754

Balance as at 31st December 2017 1,516,679,093 1,572,815,738

Withdrawable Deposits FOSA Savings Balance B/f 49,670,210 44,782,107

Movement (8,160,878) 4,888,103

41,509,332 49,670,210



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Fosa Fixed deposits

Balance B/f 7,273,929 5,731,224

Movement (2,736,882) 1,542,705

Balance as at 31st December, 2017 4,537,047 7,273,929

Total 1,562,725,473 1,629,759,877

9 Dividend & Interest payable (a) Unclaimed interest Balance brought forward (1,636,126) (2,562,232)

Declared Last year 15,728,157 44,665,867

Less:- Paid during the year for previous years (2,089,227) -

Less:- Paid during the year (11,500,180) (43,739,761)

Unclaimed/(Overpaid) interest 502,624 (1,636,126)

(b) Provision for interest, Dividend & Honorarium Provision for the year:- Interest on members deposits 15,166,791 15,728,157

Dividends - -

Honorarium - -

- -

Total Dividend, Interest & Honorarium payable 15,669,415 14,092,031



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Notes to accounts (Cont.)………………….

2017 2016

10 Payables & Accruals Kshs Kshs

Withholding tax and 10% Govt

tax/Corp. tax 1,023,645 5,673,010

Sundry creditors 1,139,733 1,139,733

PAYE December 2017 56,455 1,007,571

Audit fee provision 300,000 600,000

VAT - 96,000

Chuna Investment Shares - 33,000

Total 2,519,833 8,549,314

11 Taxation

Balance brought forward - 138,278

Provision for the year 254,700 214,200

254,700 352,478

Less paid -

Balance carried forward 254,700 352,478

12 Share capital Authorised An undetermined number of shares of Kshs 20/= each. 165,654,203 158,535,693

Additions during the year 2,526,808 7,118,510

Balance carried forward 168,181,011 165,654,203

13. Reserves Statutory reserves Balance brought forward 26,876,453 26,742,957

Additions during the year 171,004 133,496

27,047,457 26,876,453 Bonus Shares (Co-op Bank) 2,464,820 2,464,820 General reserves Balance brought forward 22,763,836 22,763,836

Additions during the year - -

Transfers (Chumbefu retentions) -

Balance carried forward 22,763,836 22,763,836 Retained Earnings 9,361,813 8,677,797

Prior year adjustment 345,240

Total Reserves 61,983,166 60,782,906 Shares transfer Balance brought forward 0 2,100,000

Additions during the year 0 0

Refunded during the year - (2,100,000)

Balance carried forward - 0



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2017 2016

Restated

14. CHUMBEFU (Benevolent) Fund Kshs Kshs

Balance brought forward -

Adjustment for year 2016 (345,240)

Contributions during the year 9,686,806 15,489,487

Chumbefu reserves 5,503,129 4,267,831

14,844,695 19,757,318

Less: Disbursements Funeral expenses 500,000 20,000

Insurance on loans 13,384,552 15,622,966

Bank charges 1,295,583 1,814,392

Chumbefu refunds 12,061,682 2,645,200

Voluntary savings refunded 13,187,150

40,428,967 20,102,558

Surplus to accounts payable (Deficit) (25,584,272) to accounts receivable Balance carried forward - -

15 Loans to Directors & Staff Restated

Directors 14,065,625 15,694,231

Staff 20,408,340 33,500,158

Totals 34,473,965 49,194,389

16 Interest from bank, loans and advances

Loans and advances 154,423,879 195,460,752

Bank - 880,000

Total 154,423,879 196,340,752

17 Interest expenses

Interest on Working Capital Loan 39,859,706 56,849,538

Interest on members deposits 15,166,791 15,728,157

Interest on savings/fixed

deposit(FOSA) 1,377,828 1,349,809

Appraisal fee Working Capital Loan 2,557,500 6,347,000

58,961,826 80,274,504



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18(i) Other operating income

Penalties 1,047,200 1,416,100

10% Top Up & other Commissions 12,983,288 10,875,948

Salary processing fee 364,100 405,500

ATM / Over the Counter

Commissions 844,599 952,003

10% Waiver Charges 566,615 469,757

Entrance fees 150,020 102,195

Chumbefu surplus/ (Deficit) - -

Total 15,955,823 14,221,503

2017 2016

18(ii) Investment income Kshs Kshs

Dividend from CIC 300,774 191,588

CIC Insurance commission 44,614 5,651

Dividend from Coop Bank Ltd. 9,488,424 12,547,378

Dividends from KUSCCO - 96,000

Total 9,833,812 12,840,617

19 Entrance fees

Main Society

Balance brought forward -

Additions during the year 150,020 102,195

Balance carried forward 150,020 102,195

Chumbefu fund (Benevolent)

Balance brought forward - -

Additions during the year - -

-

Transfer to other operating income 150,020 102,195

Balance carried forward - -



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20. Schedule of Overheads 2017 2016

Kshs Kshs

i. General expenses Periodicals and Publications 6,300 13,500

Ushirika Day 65,600 19,600

Photocopier Expenses - 67,000

KRA Penalties 5,712,575 -

Legal fees 2,202,025 777,800

Office repairs & Maintenance 653,804 980,596

Generator Expenses 349,467 875,788

Computer expenses 4,324,572 1,944,405

Printing & Stationery 745,591 749,051

Recruitment Expenses - 250,000

Security - 526,329

Telephone & Postage 167,860 912,150

Annual subscription 80,000 227,050

General office expenses 701,418 1,124,418

Insurances 4,407,639 1,710,155

Donations 6,000 -

SASRA Licence 50,000 56,000

SASRA Levy 1,364,215 1,296,256

Inquiry expenses 650,000

21,487,065 11,530,098

ii. Financial & Related Expenses Depreciations 5,773,219 4,644,080

Audit fees 600,000 600,000

VAT Provision - 96,000

Sacco -Link expenses 2,199,920 2,130,250

Consultancy charges 1,621,000 2,788,045

Bank charges 598,209 12,416,149

Bank charges - Personal loans 4,060 2,349

Dividend calculation expenses 322,000 477,000

Provision for loan loss (9,241,509) (1,020,635)

Provision for other Assets 46,000,000 45,000,000

Provision for Bad Debts 1,000,000 -

48,876,899 67,133,238

Provision for Other Assets;

The provision is made as per SASRA's Directive, to amortize the un-reconciled Loan

and deposit balances of kshs 663,012,513 over a period of 11 years.



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2017 2016

Kshs Kshs

iii. Board & Members Expenses

Directors sitting allowance 1,819,943 1,983,044

Board &Members education 4,271,496 5,695,000

AGM Expenses 3,611,220 5,360,375

Board group life 330,088 378,500

Travelling & Subsistence 1,120,319 1,974,786

11,153,066 15,391,705

iv. Staff expenses Work Injury Benefits Act(WIBA) 2,827,875 1,088,177

Salaries & Wages 27,826,745 34,861,971

NSSF ( Employers Contribution) 57,800 56,600

Staff training & education 368,700 1,723,775

Medical expenses 1,867,746 1,797,245

Travelling & Subsistence 731,472 1,858,435

Staff group life insurance 2,184,256 1,707,134

Staff provident fund 1,303,820 1,872,030

Trustees Expenses 1,456,525 2,881,042

38,624,939 47,846,409

chuna sacco society limited registration number: …

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