Emerging Leaders

Annual Report and Financial statements

For the Year Ended 31st December 2019

Contents Page

Organization Information 1

Report of the Management Comittee 4

Statement of the Management Committee Responsibility 5

Report of the Independent Auditor 6-7

Statement of Comprehensive Income 8

Statement of Financial Position 9

Statement of Cash Flows 10

Notes to the Financial Statements 11-15

Emerging Leaders
Annual Report and Financial statements
For the Year Ended 31st December 2019

ORGANIZATION INFORMATION

Commitee Members : Trevor Erick Waldock Chairperson

: Stephen David Miles Secretary/Ex officio
: Isaiah Manwa Onduko Treasurer
: Jason Kamunya Member
: Rubadiri Sekou Khama Member
: Peter Waithaka Member

Registered Office : Emerging Leaders

: Dandora Phase 4
: Plot D:1103
: Cellphone +254 723 115 142
: P.O. Box 4614-00100
: NAIROBI
: Email: emergingleaderskenya@gmail.com; isaiah@emerging-leaders.net
Website: www.emerging-leaders.net

Auditors : Mark & co. Associates

: Certified Public Accountants
: Rosslyne Riviera
: P.O. Box14697, 00100
: NAIROBI

Principal Bankers : Stanbic Bank

: Westlands Branch
: NAIROBI

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Emerging Leaders
Annual Report and Financial statements
For the Year Ended 31st December 2019

REPORT OF THE MANAGEMENT COMMITTEE

The Management Committee submits the report together with the audited financial statements for the
year ended 31st December 2019, which discloses the state of affairs of the Organization.

Principal Activity

Emerging Leaders is an organization whose main objective is to relieve poverty, promote access to
quality education and good governance and mitigate the impact of HIV / Aids among the poor.

Results

The excess of income over expenditure for the year was Kshs. 45,816 as shown on page 8 has been
added to accumulated funds.

Auditor

Mark & Co. Associates, have indicated willingness to continue in office.

BY ORDER OF THE MANAGEMENT COMMITTEE

……………………………..

Secretary

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Emerging Leaders
Annual Report and Financial statements
For the Year Ended 31st December 2019

STATEMENT OF GOVERNING COUNCIL RESPONSIBILITY

The law requires the Management Committee to prepare financial statements for each financial year that
give a true and fair view of the state of affairs of the Organization as at the end of the financial year and
of its profit or loss. It also requires the Management Committee to ensure that the Organization keeps
proper accounting record that disclose, with reasonable accuracy, the financial position of the
Organization. They are also responsible for safeguarding the assets of the Organization.

The Management Committee accepts responsibility for the annual 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
law.The Management Committee is of the opinion that the financial statements give a true and fair view
of the state of affairs of the Organization as at 31 December 2019 and of its operating results for the year
then ended.

The Management Committee further accepts responsibility for maintenance of accounting records that
may be relied upon in the preparation of financial statement, as well as adequate systems of internal
financial controls.

Nothing has come to the attention of the Management Committee to indicate that the Organization will
not remain a going concern for at least the next twelve months from the date of this statement.

Approved by the Management Committee on ……………………………………. and signed by;

…………………………… ……………………………
Trevor Erick Waldock Isaiah Manwa Onduko
CHAIRMAN TREASURER

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Emerging Leaders
Annual Report and Financial statements
For the Year Ended 31st December 2019

STATEMENT OF COMPREHENSIVE INCOME

Notes 2019 2018

Kshs Kshs

Grants 3 2,799,553 3,368,128

Other income 4 1,132,115 -

Total operating Income 3,931,668 3,368,128

Expenses:
Administrative Expenses 5 675,182 500,470

Operating Expenses 6 361,772 319,422

Training Expenses 2,940,530 2,262,449

Total Expenditure 3,977,484 3,082,341

Surplus/(deficit) (45,816) 285,787

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Emerging Leaders
Annual Report and Financial statements
For the Year Ended 31st December 2019

STATEMENT OF FINANCIAL POSITION

Notes 2019 2018
Kshs Kshs
Non Current Assets
Property,Plant and equipment 7 223,031 272,043

Total non current Assets 223,031 272,043

Current Assets
Cash and Cash Equivalents 8 898,854 332,999

Total current assets 898,854 332,999

Total Assets 1,121,885 605,041

Current Liabilities
Accounts Payable & Accruals 391,312 478,653

Total Current Liabilities 391,312 478,653

Accumulated Funds
Accumulated Funds b/f 126,388 (139,399)
Restricted Funds 650,000 -
Surplus/(deficit) (45,816) 265,787

Accumulated Funds c/f 730,572 126,388

Total Equity and Liabilities 1,121,884 605,041

The financial statements on pages 8 to 15 were approved for issue by the Management Committee
on ………………2021 and were signed by:

……………………………………… ………………………………
Trevor Erick Waldock Isaiah Manwa Onduko
CHAIRMAN TREASURER

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Emerging Leaders
Annual Report and Financial statements
For the Year Ended 31st December 2019

STATEMENT OF CASHFLOWS
2019 2018
Ksh Ksh
Cash generated from operations
Reconciliation of the Surplus(deficit) before
tax to cash generated from operations:

Surplus (Deficit) before tax -45,816 285,787

Non-cash Adjustments
Depreciation 49,012 63,363
Changes in the Working Capital
(Increase)/decrease in Receivables - (75,978)
Increase/(Decrease) in Payables (87,341)

Net Cash from/(used in) Operating Activities -84,145 273,172

Investing Activities

Purchase of Property and Equipment - (40,550)

Net Cash from/(used in) Investing Activities - (40,550)

Financing Activities
Restricted Funds 650,000 -

Net Cash from Financing Activities 650,000 -

Movement in Cash and Cash Equivalents

As at 1st January 332,999 100,376

Increase/(Decrease) 565,855 232,623

As at 31st December 898,854 332,999

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Emerging Leaders
Annual Report and Financial statements
For the Year Ended 31st December 2019

NOTES TO THE FINANCIAL STATEMENTS

1 Accounting Policies

The Principal Accounting Policies adopted in the preparation of these Financial Statements are set out below:

a) Basis of Preparation.
(i) The financial statements are prepared in compliance with the International Financial Reporting Standards and the requirements of the
Societies Act (Cap 108).

(ii) The financial statements are prepared under the historical cost covention as modified by the revaluation of certain Property, Plant and
Equipment and Investment Property and are presented in Kenya Shillings (Kshs).

(iii) The preparation of financial statements in conformity with the International Financial Reporting Standards requires the use of estimates
and assumptions that affect the reporting amounts of Assets and Liabilities at reporting date, and the reported amount of revenues and
expenses during the reporting period.

b) New and revised standards

i) Adoption of new and revised standards

The following new and revised standards and interpretations have also become effective for the first time in the year ending 31st December
2011 the Federetion has not yet adopted any of these amendments or interpretations;
IAS 27 (Revised)- Consolidated and separate Financial Statements.
IAS 39-(Amendment)- Eligible Hedged Items
IFRS 2 ( Amendment) - Group Cash-settled Share- based Payment Transctions
IFRS 3 (Revised) - Business combinations
IFRS 5 (Amendment) - Non-current Assets Held for Sale and Discontinued Operations
IFRIC 17 - Distributions of Non-cash Assets to Owners
The annual improvements project published in April 2009

The adoption of the above has had no material effect on the Organization's accounting policies or disclosures.
ii) New and revised standards and interpretations which have been issued but are not effective

The following revised standards and interpretations have been published and will be effective for the first time in the year ending
31st December 2014. Emerging Leaders has not early adopted any of these amendments or interpretations.

- IFRS 14(Amendment) - Prepayments of a Minimum Funding Requirements

- The annual improvements projects Published in May 2010

IFRS 9 - Financial Instruments will eventually replace IAS 39- Financial Instruments, Recognition and Measurement. The new
standard will be effective for annual periods beginning on or after 1st January 2013 .The chapter dealing with recognition
,classification and measurement of financial assets were published in November 2009 when adopted, the standard will result in
changes in the classification of financial assets, with the four existing classification of financial assets, with the four existing classes
being reduced to two: amortized cost and fair value . Most gains or losses on financial assets measured at fair value will then be
recognized in profit or loss, but the company will be able to make an irrecoverable election to present changes in fair value of
investments in equity instruments in other comprehensive income.

The Governing council has assesed the potential impact of the above and expect that they will not have a significant impact on the
Federation's financial statement for 2011. IFRS 9 will not be adopted untill 2013 and the Governing Council have not yet decided
whether to make the election in respect on investments in equity instruments referred to above.

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Emerging Leaders
Annual Report and Financial statements
For the Year Ended 31st December 2019

Notes

b) Revenue Recognition

Revenue represents the fair value of the consideration received or receivable for the sales of goods and services. Subscription fees is recognized on
accrual basis. In the case of Emerging Leaders revenue is derived from grants received, subscription and funding activities.

c) Grants

Grants received to compensate expenses, losses or for the purpose of giving immediate operational support is dealt with in the statement of
comprehensive income in the year it is received. It is recognized only when it is probable that the economic benefit associated with the transaction
will flow to Emerging Leaders.

d) Property, Plant and Equipment.

All categories of Property, Plant and Equipment are initially recorded at cost. Buildings and freehold land are subsequently shown at market value,
based on triennial valuations by external valuer, less subsequent depreciation for buildings. All other items of property, plant and equipment are stated
at historical cost less depreciation.

Subsequent costs are included in the carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic
benefits associated with the item will flow to the Federation and the cost can be measured reliably. All other repairs and maintenance are charged to
the statement of comprehensive income during the financial period in which they are incurred.

Depreciation is calculated using the reducing balance basis to write down cost or revalued amounts to their residual values over their estimated useful
lives using the following annual rates:
Rate %
Computers 30.0%
Furniture & Fittings 12.5%

g) Retirement benefit obligations

Defined contribution

The Organisation and the employees contribute to the National Social Security Fund (NSSF), a national defined contribution scheme. Contributions
are determined by local statute and the Emerging Leaders's contributions are charged to the income and expenditure account in the year to which they
relate.

i) Cash and cash equivalents

Cash and cash equivalents include cash in hand and demand and term deposits, with maturities of three months or less from the date of acquisition,
that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, net of bank overdrafts. In the
statement of financial position, bank overdrafts are included as borrowings under current liabilities.

j) Currency

Transactions in foreign currencies during the year are converted into Kenyan Shillings at rates ruling at the date of transaction.

k) Exemption from income tax

Emerging Leaders is non profit making organisation and derives its income from donor funding for implementation of specific projects. In addition it
raises subscription fees from members .

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Emerging Leaders
Annual Report and Financial statements
For the Year Ended 31st December 2019

Notes continued

i) Operating revenue
The following have been charged in arriving at the operating surplus:
2019 2018
Kshs Kshs
Depreciation 49,012 63,363
Staff Costs - -

2) Organization's risk management

a) Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in
financial loss to Emerging Leaders. Emerging Leaders has adopted a policy of only dealing with
creditworthy parties by obtaining sufficient information regarding the party.

b) Liquidity risk management

Liquidity risk refers to the risk that an entity will encounter difficulty in meeting obligations
associated with financial liabilities. Through the prudent management of liquidity risk by the
Management Committee, the Organization has been able to contain liquidity risk by maintaining
adequate banking facilities and continuously monitoring forecast and actual cashflows.

c) Operational risk management

An operational risk is a risk arising from execution of the Alliances' business functions, The risk of
loss resulting from inadequate or failed internal processes, people and systems or from external
events e.g. (1) Internal Fraud - misappropriation of assets, intentional mismarking of positions (2)
External Fraud- theft of information, hacking damage, third-party theft and forgery (3) Employment
Practices and Workplace Safety - discrimination, workers compensation, employee health and safety
(4) Clients, Products, & Business Practice- market manipulation, improper trade, product defects,
fiduciary breaches, account churning (5) Damage to Physical Assets - natural disasters, vandalism (6)
Business Disruption & Systems Failures - utility disruptions, software failures, hardware failures (7)
Execution, Delivery & Process Management - data entry errors, accounting errors

The primary responsibility for the development and implementation of controls to address operational
risk is assigned to senior management within each business unit. Several standards for the entire
company are applied but not limited to the following;
1) Proper segregation of duties
2) Consistent reconciliation and monitoring of transactions
3) Compliance with regulatory and other legal requirements
4) Proper documentation of controls and procedures
5) Frequent training of staff members on internal systems
6) Reporting of operational losses and proposed remedial measures

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Emerging Leaders
Annual Report and Financial statements
For the Year Ended 31st December 2019

Notes continued
2019 2018
Kshs Kshs
3 Income
Grant & Contribution 2,799,553 3368128.3
Total Income 2,799,553 3,368,128

4 Other Income
Training 1,132,115 -
Total other income 1,132,115 -

5 Administrative Expenses
Salaries and Wages - -
Staff Welfare 22,484 -
Office Expenses - 4,250
Licences & Permits 27,000 33,100
Printing and Stationery 37,648 18,145
Audit fee 25,000 10,000
Accounting fee 563,050 434,975
Total Administrative Expenses 675,182 500,470

6 Operating Expenses
Rent and rates 45,000 -
Travel expense 34,061 207,438
Depreciation 49,012 63,363
Meals & Refreshments 178,033 26,835
Bank Charges 11,966 11,586
Telephone and Postage 43,700 10,200
Total Operating Expenses 361,772 319,422

Training Expenses
Proffesional & Consultancy 1,331,000 632,500
Monitoring & Evaluation 249,120 -
Training Materials 498,124 386,214
Facilitation Expenses (Trainers) 862,286 1,243,735
Total Training Expenses 2,940,530 2,262,449

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Emerging Leaders
Annual Report and Financial statements
For the Year Ended 31st December 2019

Notes continued

7 Property & Equipment Schedule

Office Intangible Computer & Furniture & Total
Equiipment Assets Accessories fitting
Kshs Kshs Kshs Kshs Kshs
Applicable Rates 12.50% 30% 30% 12.50%
Cost
As at January 2018 137,318 70,000 180,000 87,800 475,118
Additions - - - 40,550 40,550
As at December 2018 137,318 70,000 180,000 128,350 515,668

Depreciation
As at January 2018 32,184 35,700 91,800 20,578 180,262
Charge for the year 13,142 10,290 26,460 13,472 63,363
As at December 2018 45,326 45,990 118,260 34,050 243,625

Cost
As at January 2019 137,318 70,000 180,000 128,350 515,668
Additions - - - - -
As at December 2019 137,318 70,000 180,000 128,350 515,668

Depreciation
As at January 2019 45,326 45,990 118,260 34,050 243,625
Charge for the year 11,499 7,203 18,522 11,788 49,012
As at December 2019 56,825 53,193 136,782 45,837 292,637
NBV
As at December 2019 80,493 16,807 43,218 82,513 223,031
As at December 2018 91,992 24,010 61,740 94,301 272,043

2019 2018
Kshs Kshs
8 Cash and Cash Equivalents
Cash on Hand -48,099 -
Cash at Bank 946,953 332,999
Total Cash and Bank 898,854 332,999

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