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Midrand High School Welcomes you to the Special General Meeting 19 April 2010.

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Presentation on theme: "Midrand High School Welcomes you to the Special General Meeting 19 April 2010."— Presentation transcript:

1 Midrand High School Welcomes you to the Special General Meeting 19 April 2010

2 AGENDA Welcome Vision and Mission Financial management control Review of 2009 audited accounts Income Statement 2009 Expenses Balance Sheet 2009 Income Statement 2010 School fee collections Exemption statistics Resolution

3 Vision We prepare Midrand High School learners to positively engage in our diverse and dynamic world

4 Our Mission  To engage learners in Academic,Sporting and Cultural activities in a safe teaching and learning environment.  To promote meaningful partnerships among all stakeholders.  To manage the school’s resources effectively.  To attract, develop and maintain competent educators.  To instil positive values and equip learners with the skills to acquire knowledge.

5 Review of 2009 audited accounts Scope of Audit –Conducted in accordance with International Standards on Auditing.  Require that an audit is planned and performed to obtain reasonable assurance about whether the annual financial statements are free of material misstatements. The audit examines on a test basis, evidence supporting the amounts and disclosures in the annual financial statement. Includes assessing the accounting policies used and significant estimates made by management as well as evaluating the overall financial statement presentation. Review of 2009 audited accounts

6 Review of 2009 audited accounts (Cont…) Qualification –Not feasible for the school to institute accounting controls with regard to cash collections from donations and funds raising prior to the initial entry of the collections in the accounting records. –The audit could not be extended beyond the receipts actually recorded. Opinion –Except for the effect of the matter referred to in the preceding paragraph, the Annual Financial Statements presents fairly, in all material respects, the financial position of the school at December 31, 2009 and the results of its operations and cash flows.

7 Financial Management Control A Section 21 school as determined in the South African Schools Act Largely financed by parents via the payment of school fees. The school is managed by the School Governing Body who in turn vest the management of finances in the Finance Committee. The current members of the committee are: –M.Rabothata: Chairperson –R.Ralephata: SGB Chairperson –Ms. N.Mashale: Parent member of SGB –Ms. A. Van Zyl: Principal –I.Oliver: Bursar The Committee meets on a monthly basis to consider the monthly financial statements and review all financial aspects of the school. The schools financial results are audited on an annual basis by professional auditors appointed by the parents in the Annual General Meeting.

8 Detailed Income Statement for the year ended 31 December 2009 2009 R 2008 R Gross revenue School Fees 7,201,5196,240,321 Other income583,053374,525 Bad debts recovered06,327 Interest received22,34040,261 Profit/(loss) on funds raised Profit on disposal of fixed assets 97,250 Uniform income20470 Rent received297,313199,077 Sundry income165,946128,790 Total Income7,784,5726,614,846 Expenditure7,546,7246,504,142 Surplus237,848110,704 Retained profits at beginning of year2,204,4722,093,768 Retained profits at end of year2,442,3202,204,472

9 Expenditure Items 2009 2008 Administration R 511 R 603 Bad Debts 1562 1018 +53% Salaries 3008 2817 + 7% Maintenance 554 619 Computer 339 275 Printing 407 334 Insurance 180 154 +17% Telephones 142 128 Security 175 152 2009 2008

10 Balance Sheet as at 31 December 2009 Notes 2009 R 2008 R Assets Non-current assets1,960,7071,988,925 Fixed assets1,960,7071,988,925 Loans receivable Current assets2,935,7802,029,454 Accounts receivable and book stock1,633,3481,140,388 Bank balance1,302,432889,066 Total assets4,896,4874,018,379 Equity and Liabilities Capital and reserves Accumulated surplus funds2,442,3202,204,472 Non-current Liabilities Borrowings31,409118,193 Current Liabilities2,422,7581,695,714 Accounts payable747,847349,041 Current portion of borrowings86,78376,636 School fees received in advance1,588,1281,270,037 Provisions-- Total Equity and Liabilities4,896,4874,018,379

11 Detailed Income Statement to 31 March 2010 Actual R Budget R Gross revenue School Fees 2,711,0572,651,250 Other income141,203137,000 Bad debts recovered00 Interest received3,8806,500 Profit/(loss) on funds raised Profit on disposal of fixed assets 00000 Uniform income00 Rent received72,71068,500 Sundry income64,61362,000 Total Income2,852,2602,788,250 Expenditure2,636,4742,892,940 Surplus/ (Deficit)215,786(104690) Surplus/ (Deficit)215,786(104690)

12 **An amount of R1,561,562 was reflected as bad debts in our 2009 accounts. This is not necessarily a write-off of debts but rather a prudent provision for bad or potentially bad or doubtful debts. Before taking any legal action the school makes every effort to collect the debt or make payment arrangements with non-payers. We also act strictly in accordance with the relevant provisions of the S.A.Schools Act. All debt collection is handled in-house including all the necessary legal work. Non-paying parents will be blacklisted. We have recently implemented the NAEDO debit order system in order to reduce the level of unpaid debit orders. DEBTOR COLLECTIONS

13 FEE EXEMPTIONS Fee exemptions for 2009 totalled R1128431. A total of 166 exemptions were granted giving an average of R6800 per applicant. For the period January – March 2010 we have granted exemptions to the value of R 602000. A total of 73 exemptions have been granted giving an average of R8246 per applicant. All exemptions are granted in terms of the relevant provisions of the S.A. Schools Act (Norms and Standards for School Funding). Parents are however encouraged to make whatever voluntary contributions they can afford towards the school fee.

14 Exemptions

15 Resolution: Investment of Surplus Funds In order to do this the School requires a resolution of parents in a general meeting. It is anticipated that the school will generate surplus funds this year and it is imperative that we invest these funds in order to increase our income. After discussions with Absa Bank the School Governing Body recommends that the funds be invested in a Fixed Deposit account for a period not exceeding six months at an interest rate of 7% p.a. The interest rate and capital invested are both guaranteed. At the end of the initial period the position will be reviewed in the light of our then financial position.  Permission can then be obtained from the GDE to go ahead with the investment in a second bank account.

16 PROPOSAL Funds be invested in an appropriate ABSA account for a period not exceeding six months with guaranteed capital. PROPOSED: SGB SECONDED: TRAGGY MAEPA

17 Questions Exemptions: What docs are looked at? School fees: additional amount for books - is this included? What has materialised in recovering bad debts? Any bad debt written off? (Provision was made in 2009 for 2009 accounts)


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