ANNUAL REPORT - SADCAS Southern African ... FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015 35...

ANNUAL REPORT |

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ANNUALREPORT

• DELIVERING CONFIDENCE

• ASSURING COMPETENCE

• GUARANTEEING QUALITY

SOUTHERN AFRICAN DEVELOPMENT COMMUNITY ACCREDITATION SERVICE

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ACRONYMS AND ABBREVIATIONS 3

VISION, MISSION, MANDATE, COMPANY VALUES AND VALUE 4PROPOSITION

CORPORATE PROFILE 5

BOARD OF DIRECTORS 7

BOARD OF DIRECTORS MEETINGS ATTENDANCE 8

GENERAL INFORMATION 9

ORGANIZATIONAL STRUCTURE 12

MANAGEMENT AND STAFF 13

NATIONAL ACCREDITATION FOCAL POINTS 14

CHAIRMAN’S STATEMENT 16

CHIEF EXECUTIVE OFFICER’S REPORT 17

REPORT OF THE HUMAN RESOURCES AND REMUNERATION COMMITTEE 30

REPORT OF THE FINANCE, RISK AND AUDIT COMMITTEE 33

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015 35

• StatementofResponsibilitybytheBoardofDirectors 36• IndependentAuditor’sReport 37• StatementofComprehensiveIncome 38• StatementofFinancialPosition 39• StatementofChangesinFunds 40• StatementofCashFlows 41• NotestotheFinancialStatements 42• Annexure1-DetailedIncomeStatement 64

Table of Contents

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Acronyms And Abbreviations

AC AdvisoryCommittee

AAC AccreditationApprovalsCommittee

AFRAC AfricanAccreditationCooperation

AGM AnnualGeneralMeeting

BURS BotswanaUnifiedRevenueServices

BWP BotswanaPula

CBAP-MS ManagementSystemsCertificationBodiesAccreditationProgramme

CBAP-Prod ProductCertificationBodiesAccreditationProgramme

CBAP-Pers PersonnelCertificationBodiesAccreditationProgramme

CEO ChiefExecutiveOfficer

CLAP CalibrationLaboratoriesAccreditationProgramme

CPD ContinuousProfessionalDevelopment

DRC DemocraticRepublicofCongo

EDF EuropeanDevelopmentFund

EU EuropeanUnion

FRAC Finance,RiskandAuditCommittee

HRRC HumanResourcesandRemunerationCommittee

IBAP InspectionBodiesAccreditationProgramme

IAF InternationalAccreditationForum

IEC InternationalElectrotechnicalCommission

IFRS InternationalFinanceReportingStandards

ILAC InternationalLaboratoryAccreditationCooperation

ISO InternationalOrganizationforStandardization

MLAP MedicalLaboratoriesAccreditationProgramme

MOU MemorandumofUnderstanding

MV & MU MethodValidationandMeasurementUncertainty

NAFP NationalAccreditationFocalPoint

NOK NorwegianKroner

NSSA NationalSocialSecurityAuthorityZimbabwe

PWCQMS

PricewaterhouseCoopersQualityManagementSystem

REIS RegionalEconomicIntegrationSupport

SADC SouthernAfricanDevelopmentCommunity

SADCA SouthernAfricanDevelopmentCommunityCooperationinAccreditation

SADCAS SouthernAfricanDevelopmentCommunityAccreditationService

SANAS SouthAfricanNationalAccreditationSystem

SQAM Standardization,QualityAssurance,AccreditationandMetrology

TBT TechnicalBarrierstoTrade

TLAP TestingLaboratoriesAccreditationProgramme

TPA TwinningPartnershipArrangement

TUNAC TunisianAccreditationCouncil

WAD WorldAccreditationDay


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SADCAS Vision

SADCASvisionistobeacredibleaccreditationbodyatthecuttingedgeofaccreditationservicedelivery.

SADCAS Mission

SADCASmissionistoprovidecredible,costeffective,accreditationservices for SADC Member States aimed at supporting trade,enhance the protection of consumers and the environment, andimprove the competitiveness of SADC products and services inboththevoluntaryandregulatoryareas.

SADCAS Mandate

SADCAS draws its mandate fromArticle 15 B of theTechnicalBarriers toTrade (TBT)Annex to the SADCProtocol onTrade.SADCAS is recognized by the Southern African DevelopmentCommunity(SADC)CouncilofMinistersasasubsidiarityinstitutionof SADC. The relationship between SADCAS and SADC isformalizedthroughaMemorandumofUnderstandingonGeneralCooperation. The objects, powers and rules for the operationof SADCAS are set out in the Memorandum and Articles ofAssociationlodgedwiththeRegistrarofCompanies,Botswana.

SADCAS Company Values

In its service provision SADCAS upholds the following six corevalues:

Impartiality–Weareorganizedandoperatesoas tosafeguardobjectivityandimpartialityofourservices.

Transparency – We are dedicated to provide completetransparency in our work by communicating effectively with ourclients.

Non-discrimination–Wetreatourclientsfairlyandinanequitablemanner.

Vision, Mission, Mandate, Company Values and Value Proposition

Integrity –Weactwithhonestyandintegrity.

Innovation–Wegeneratenewideasandutilizecreativeapproachestoproblemsforcontinuousimprovement.

Diversity –We respect the diversity of our clients and ensurebalanceofinterestinrepresentation.

SADCAS Value Proposition

Delivering confidenceAssuring competenceGuaranteeing quality

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The Southern African Development Community AccreditationServices (SADCAS) is a multi-economy accreditation bodyestablishedintermsofArticle15BoftheTechnicalBarrierstoTrade(TBT)Annex to the SADC Protocol onTradewith the primarypurposeofensuringthatconformityassessmentserviceproviders(calibration/testing/medicallaboratories,certificationandinspectionbodies) operating in those SADCMember States which do nothave national accreditation bodies are subject to an oversight byan authoritativebody.Within theSADCregiononly SouthAfricaand Mauritius have national accreditation bodies.The remaining13 countries namely: Angola; Botswana; Democratic Republic ofCongo(DRC);Lesotho;Madagascar ;Malawi;Mozambique;Namibia;Seychelles;Swaziland;Tanzania;Zambia;andZimbabwedonothavenationalaccreditationbodieshenceservicedbySADCAS.Byassuringtechnicalcompetencethroughaccreditation,SADCASplaysakeyrole towards the achievementof SADCgoals in trade facilitationandintheprotectionofhealth,safetyandtheenvironment.

SADCASwasregisteredin2005asanotforprofitcompanylimitedbyguaranteeundertheBotswanaCompaniesAct,2003(ActNo.32 of 2004). SADCAS was approved by the SADC Council ofMinistersinAugust2007asaSubsidiarityInstitutionofSADC.TherelationshipbetweenSADCASandSADCisformalizedthroughaMemorandumofUnderstanding(MOU)onGeneralCooperation.SADCASHeadquartersaresituatedatGaborone,Botswana.

Governance

SADCASisgovernedbyaGeneralAssemblywhichcomprisesof:

• SubscriberstotheMemorandumandArticlesofAssociation;• MembersoftheBoardofDirectors;• AppointedrepresentativesofNationalAccreditationFocal Points(NAFPs)ineachSADCMemberStateusingtheservice ofSADCAS;and• Individualsororganizationswhoapplyforadmissionas membersofSADCAS.

DrawnoutoftheGeneralAssemblyistheBoardofDirectorswhichoverseestherunningofSADCASandfulfillsanyfunctionthattheSADCASGeneralAssemblymaydelegatetoit.TheSADCASChiefExecutiveOfficer (CEO)who reports to theBoardofDirectorsleadsthecompanyandisresponsiblefortheday-to-dayoperationofSADCAS.

SADCAS Organization

SADCASiscomposedofthreefunctionalunits.The technical unit whichisheadedbytheTechnicalManagerisresponsiblefortechnicalaspects of accreditation including the management of assessors. The accreditation administrationunitisresponsibleforensuringthat all administrationneeded toeffect the assessmentprocessesare effectively managed.The unit is also responsible for ensuringthat training services are effectively and efficiently organized andadministered.The financial administration unitisresponsibleforfinancialmanagement,human resourcesmanagementandgeneraladministrationoftheCompany.NationalAccreditationFocalPoints(NAFPs)establishedinSADCMemberStatesusingtheservicesofSADCAS serve as the administrative linkbetweenSADCASandclients/potentialclientsinMemberStates.

Accreditation assessments are undertaken, on behalf ofSADCAS, by apoolof SADCAS registered assessorswhomakerecommendationsforaccreditationbytheSADCASAccreditationApprovals Committee (AAC).Advisory Committees (AC) adviseSADCASontechnicalmatters.

SADCAS Services

SADCASprovidesaccreditationservicesandtraininginaccreditationassociatedactivities.

Corporate Profile


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Accreditation services

SADCASoffersaccreditationprogrammesfor :

• CalibrationlaboratoriesinaccordancewithISO/IEC17025;• TestinglaboratoriesinaccordancewithISO/IEC17025;• MedicallaboratoriesinaccordancewithISO15189;• Management systems certification bodies in accordance with

ISO/IEC17021;• InspectionbodiesinaccordancewithISO/IEC17020;• ProductcertificationbodiesinaccordancewithISO/IEC17065;

and• Personnel certification bodies in accordance with ISO/IEC

17024.

SADCASwillbroadenitsscopeofaccreditationasneedsarise.

Training services

SADCASoffers trainingon accreditation related courses.Trainingcanbeconductedin-houseorasopencourses.

SADCASoffersthefollowingtrainingcourses:

• One-day awareness training courses on the various keyaccreditationstandards.Theobjectiveoftheonedayawarenesstraining courses is to create awareness on the benefits andimportance of accreditation and the requirements of therespectiveaccreditationstandards.

• Five-day requirements, implementation and internal auditingstandards whose objective is to provide an insight into therespective system standards requirements, implementation aswell as to guide conformity assessment bodies’ personnel onhowtoprepareandcarryoutaninternalauditsoastomonitorcompliancewiththesystemstandard.

• Three-day internal auditing courses whose objective is toimpartinternalauditingknowledgeandskillssothatconformityassessment bodies are able to monitor compliance with therespectivekeyaccreditationstandards.

• Five-day intensive course on Method Validation andMeasurement Uncertainty covers statistical fundamentals andadvancedconceptsofstatisticaltechniquesthatareusedinbothmethod validation/verification and in calculatingmeasurementuncertaintyoftestresults.

Besides the above courses, SADCAS can also offer otheraccreditation related courses depending on needs. The trainingcoursesareconductedonbehalfofSADCASbyapoolofqualifiedandregisteredtrainerswhohavehandsonanduptodateexperienceon accreditation matters. The training courses are designed tocreateawarenessonthebenefitsandimportanceofaccreditationandtopromoteanunderstandingoftherequirementsofthekeyaccreditationstandards.Inordernottocompromiseitsimpartialityprinciples and status in training service delivery, SADCAS doesnot give specific advice for the development of an organization’soperations. Furthermore the training delivered or facilitated bySADCASarenotapre-conditionofaccreditationneitherdotheyguaranteeaccreditationbySADCAS.

SADCAS Regional and International Connections.

SADCASis

• An Associate member of the International LaboratoryAccreditationCooperation(ILAC);

• AnObservermemberoftheInternationalAccreditationForum(IAF);

• A full member of the African Accreditation Cooperation(AFRAC);and

• AnordinarymemberoftheSADCCooperationinAccreditation(SADCA).

Corporate Profile

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Mr Steven Bruce SidneyChairman

Mr Viki Mbuya KanamaMember

Mr Emmanuel JindaMember

Ms Boitumelo GofhamodimoMember

Ms Verily Kearoma MolatediViceChairman

Ms Likonelo Alicia Lebone Member

Mrs Christine Eve GadzikwaMember

Mr Alfredo Filipe SitoeMember

Mrs Maureen Primrose MutasaChiefExecutiveOfficer-Member

Board Of Directors


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Name Status

Meeting Dates

2014-05-08 2014-08-21 2014-11-27 2015-02-192015-03-17

(Special)

MrStevenBruceSidney

Chairman

Non-Executive

DirectorP P P P P

MsVerilyKearomaMolatedi

ViceChairman

Non-Executive

DirectorApology P Apology Apology Apology

MrVikiMbeyaKanama Non-Executive

DirectorP Apology P P P

MrsChristineEveGadzikwa NonExecutive

DirectorP P P P P

MsBoitumeloGofhamodimo Non-Executive

DirectorApology P Apology Apology Apology

MsLikoneloAliciaLebone Non-Executive

DirectorP P Apology Apology Apology

MrAlfredoFilipeSitoe Non-Executive

DirectorP P P Apology P

MrEmmanuelJinda Non-Executive

Director - P P P P

MrsMaureenPrimroseMutasa Executive

DirectorP P P P P

ByInvitation

DrElsieMeinjies

SADCSecretariat

- - - P P

Board Of Directors’ Meetings Attendance

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General Information

Bankers

FirstNationalBankofBotswana GroundFloor,CapitolBuilding Plot1108,MainMall PrivateBagBO52 Gaborone,Botswana

Tel: +2673959422Fax: +2673912596

Auditors

PricewaterhouseCoopers Plot50731 FairgroundsOfficePark Gaborone POBox294 Gaborone,Botswana

Tel: +2673952011Fax: +2673973901

Company Secretary UPTSecretarialServices(Proprietary)Limited Plot465MatangwaneRoadExtension4 Gaborone POBox46699Village Gaborone,Botswana

Tel: +2673906855Fax: +2673906860

SADCAS Registration Number – 2005/6912

SADCASRegisteredOffice Plot50676,FirstFloorBlockB BIFM/FairgroundsOfficePark Gaborone POBox00320 Gaborone,Botswana

Tel: +2673132909/3132910Fax: +2673132922Mobile:+26771250042


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NAFP-Angola NAFP-Madagascar

InstitutoAngolanodeNormalizaçãoeQualidadePOBox3709/POBox594,Luanda,AngolaTel: +244222337294/+244925058184Fax: +244222396745

BureaudeNormesdeMadagascarBP1316,Antananarivo101,MadagascarTel: +2612227970Mobile: +261320220500

NAFP-Botswana NAFP-Malawi

MinistryofTradeandIndustryPrivateBag0014,Gaborone,BotswanaTel: +2673957406Mobile:+26771583465Fax: +2673972910

MalawiBureauofStandardsPOBox946,Blantyre,MalawiTel: +2651870488Mobile: +265999695705Fax: +2651870756

NAFP-Democratic Republic of Congo NAFP-Mozambique

OfficeCongolaisdeContrôleBP8614-8806,Kinshasa1,DemocraticRepublicofCongoTel: +243997899855Mobile: +243815082006Fax: +2435126822162

InstituteNacionaldeNormalizaçãoeQualidadePOBox2983,Maputo,MozambiqueTel: +25821303822/21303823Mobile: +258824649260Fax: +25821304206

NAFP-Lesotho NAFP-Namibia

StandardsandQualityAssuranceDepartmentMinistryofTradeandIndustry,Cooperatives&MarketingPOBox747,Maseru100,LesothoTel: +26622317454Mobile: +26659093332Fax: +26622310326

MinistryofTrade&IndustryP/Bag13340,Windhoek,NamibiaTel: +264612837111Mobile: +264811295981Fax:: +26461222227

National Accreditation Focal Points Offices

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NAFP - Seychelles NAFP - Zambia

SeychellesBureauofStandardsStandardsHouseProvidenceIndustrialEstatePOBox953,Victoria,Mahe,SeychellesTel: +2484380402Mobile: +2482527590Fax: +2484373826

MinistryofCommerce,TradeandIndustryPOBox31968,Lusaka,ZambiaTel: +260211226954Mobile: +260950408529Fax: +260211226954

NAFP-Swaziland NAFP - Zimbabwe

MinistryofEnterpriseandEmploymentStandardization&QualityAssuranceSectionPOBox451,Mbabane,SwazilandTel: +26824047509Mobile: +26876117929Fax: +26824043055/+26824044711

MinistryofIndustry&InternationalTradeLegalMetrologyDirectoratePrivateBag7708,CausewayHarareW,ZimbabweTel: +2634702735/+2634707735Mobile: +263774648850Fax: +2634793461

NAFP - Tanzania

TanzaniaBureauofStandardsPOBox9524,DaresSalaam,TanzaniaTel: +255222450206/+255756590360Fax: +255222450959

SADCASisnowinits7thyearofoperationasamultieconomyaccreditationbodyestablishedtomeetthe


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Organisational Structure

SADCAS GeneralAssembly

SADCAS Member StatesNational Governments

SADCAS Board ofDirectors

Appeals Committee

Human Resource & Renumeration

Committee

Finance Risk andAudit Committee

Technical Manager

Financial Administrator

Acreditation Administrator

Assessors National Acreditation Focal Points

• Advisory Committee• Acreditation

Approvals Committee Chief Executive

OfficerQuality Manager

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Management and Staff

Mrs Maureen Primrose MutasaChiefExecutiveOfficer

Mrs Laureen Rutendo GudoFinancialAdministrator

Ms Jeanne François RanoroveloTechnicalManager

Ms Linda DirorimweAccreditationAdministrator

Mr Xavier Mugari LeadAssessor


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National Accreditation Focal Points

Mr Carmo dos Santos NAFP-Angola

Mr Azael Motjoka MakaraNAFP-Lesotho

Mr Edward MmatliNAFP-Botswana

Mr Séraphin Andrianantanarivo Razafimahafaly NAFP-Madagascar

Mr Viki Mbuya KanamaNAFP-DemocraticRepublicofCongo

Mr Patrician Kondowe NAFP-Malawi

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Mrs Guilhermina NhampuloNAFP-Mozambique

Ms Stella MrossoNAFP-Tanzania

Ms Jaanda MahareroNAFP-Namibia

Mr Moses NgosaNAFP-Zambia

Mrs Amy QuatreNAFP-Seychelles

Ms Rihana ChibandaNAFP-Zimbabwe

Mrs Sthembiso Sybil Dlamini NAFP-Swaziland


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SADCAS isnow in its7thyearofoperationasamultieconomyaccreditation body established to meet the accreditation needsof SADC Member States especially those without a nationalaccreditationbodyi.e.13countriesinallnamely:Angola;Botswana;Democratic Republic of Congo; Lesotho; Madagascar ; Malawi;Mozambique; Namibia; Seychelles; Swaziland; Tanzania; Zambia;and Zimbabwe. SADCAS has achieved another encouragingperformance over the last financial year. The number ofaccreditations grew significantly alongside the current accreditedfacilities seeking to extend their existing scopes of accreditation.Thenumberofconformityassessmentbodiescoming forward tobeaccreditedandwhohaveexpressedinterestinaccreditationbySADCASisalsoincreasing.SADCASbusinessisgrowingnotonlyin termsof field and scopeof accreditation but also in termsofsectors and geographical diversity.Great strides have beenmadetowards international recognition of its accreditation certificates,withSADCASsuccessfullyundergoinga jointpre-peerevaluationbytheInternationalLaboratoryAccreditationCooperation(ILAC)andtheAfricanAccreditationCooperation(AFRAC)inJune2014,andafullpeerevaluationinMay2015.Iamconfidentthat“TeamSADCAS’ underMrsMutasa’s leadershipwill prevail through thisrigorousprocessandachievethesaidstatusbyDecember2015.AdetailedreportoftheactivitiesundertakenduringtheperiodunderreviewiscontainedintheChiefExecutiveOfficer’s(CEO)report.

Withregardtogovernanceissues,theSADCASBoardofDirectorsheld five (5)meetings;May 2014,August 2014,November 2014,February2015andMarch2015withthelatterhavingbeenheldtofinalizepreparations for the10thAnnualGeneralMeeting (AGM).DuringthemeetingstheBoardconsideredandapprovedthe2014/15annualimplementationplan,theauditedfinancialstatementsfortheyearended31March2014,2013/14annualreport, theSADCASrisk profile and the 2015/16 budget.The Board also discussedstrategicissuesandinparticular,taxregistrationforwhichSADCASis now registered with the Botswana Unified RevenueAuthority(BURS).DuringtheseBoardmeetings,theChiefExecutiveOfficerreportedontheactivitiesofSADCASthusenablingtheBoardtomonitor progress on the implementation of the 2014/15 annualimplementationandactivityplans.TheBoardCommitteesnamelythe Finance, Risk andAudit Committee (FRAC) and theHumanResourcesandRemunerationCommittee (HRRC)eachmet fourand three times respectively to discuss matters relating to theirscopeasdefined in their respectiveTermsofReference.DetailedreportsarecontainedintherespectiveCommitteeChairs’reports.

Chairman’s Statement

On Board membership, I was unanimously appointed as theChairmanoftheBoardinMay2014whilstMsVerilyMolatedifromBotswanawasunanimouslyappointedastheViceChairmanoftheSADCASBoardofDirectors.MsMolatedialsoservesastheChairoftheFRAC.ThetermsofofficeforMrsChristineEveGadzikwaandMrVikiMbuyaKanamaexpired,havingbothserved2consecutivethree-yearterms.MrsGadzikwabesidesbeingtheChairmanoftheHumanResources andRemunerationCommittee also servedontheFinance,RiskandAuditCommittee.IthankbothMrsGadzikwaand Mr Kanama for their valuable contributions over the yearstowards thegovernanceofSADCASandabovealldedication toserveontheSADCASBoard.InMay2014,MrEmmanuelJindafromZimbabwewas co-opted to theSADCASBoardofDirectors toprovideexpertiseinhumanresourcesandgovernanceissues.InlinewithArticle25oftheSADCASArticlesofAssociation,MrJindawaselectedatthe10thAGMasamemberoftheBoardofDirectorsandsubsequently appointedChair of theHRRC.MrDavlinMoyendaDamazielfromMalawiwaselectedatthe10thAGMasamemberoftheBoardandsubsequentlyappointedtoserveontheHRRC.

Please joinmeonceagain in thanking theSADCASmanagementandstaff for theirhardworkanddedication, theNAFPs for theirinputinpromotingaccreditationandmarketingSADCASservices,the SADCAS Board of Directors and the General AssemblymembersandlastbutnotleastourcooperatingpartnersandthegovernmentsoftheSADCMemberStatesthatweservicefortheircontributions towards SADCAS sustainability and success.WithSADCASsustainabilityassuredthroughgovernments’contributions,IamconfidentthatSADCASiswellpositionedtomeetthegrowingdemand for accreditation and to address the challenges that lieahead.

_________________________Steven Bruce SidneyChairmanSADCASBoardofDirectors

Mr Steven Bruce SidneyChairmanSADCASBoardofDirectors

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Summary

Thefinancial yearbeginning1April2014 to31March2015wasbusy and successful with SADCAS recording further significantdevelopments. The number of accreditations grew significantlyalongside the current accredited facilities seeking to extend theirexisting scopes of accreditation. The number of accreditationapplicationsandexpressedinterestinaccreditationbySADCASisgrowingsteadily.SADCASbusinessisgrowingnotonlyintermsoffieldandscopeofaccreditationbutalsointermsofsectorcoverageand geographical diversity. SADCAS has made great stridestowards international recognition of its accreditation certificateshaving successfully undergone a joint pre-peer evaluation by theInternationalLaboratoryAccreditationCooperation(ILAC)andtheAfricanAccreditationCooperation (AFRAC) in June 2014, and afullpeerevaluationinMay2015.Thefollowingisasummaryoftheachievements in each of the five key result areas agreed for the2014/15financialyear.

Consolidate, Streamline and Enhance Delivery of Accreditation Service to the Target Population

As at 31 March 2015, SADCAS had issued 48 accreditationcertificates to 36 accredited facilities in 8 SADCMember Statesnamely;Botswana(7),Mozambique(1),Namibia(4),Seychelles(2),Swaziland(1),Tanzania(9),Zambia(2)andZimbabwe(10).Mostoftheissuedcertificates16(45%)fallundertheTestingLaboratoriesAccreditation Programme (TLAP), 9 (25%) under the MedicalLaboratories Accreditation Programme (MLAP), 8 (22%) underthe Calibration Laboratories Accreditation Programme (CLAP),3 (8%) under the Inspection Bodies Accreditation Programme(IBAP). Accreditations grew by 50% whilst sector coverage alsoincreased with some facilities falling into more than one sector.RefertoFigures1,2,3and4.AtthesametimeSADCAShad43accreditationapplicationsfrom10countriesunderprocessofwhich8arefromSADCcountriesnamely;Botswana(13);Zimbabwe(10);DRC (7);Tanzania (5);Zambia (3);Mozambique (1);Namibia (1);andAngola (1); and2 fromnonSADCcountriesLiberia (1) andGhana(1),atvariousstagesofprocessing.SADCAShaswitnessed

Chief Executive Officer’s Report

increasing interest in the MLAP andTLAP with 15 applicationsunderprocess(35%)beingmedicallaboratoriesand21(49%)beingtestinglaboratorieswiththerestbeing3inspectionbodies(7%),2calibrationlaboratories(5%),onemanagementsystemcertificationbody(2%)andoneproductcertificationbody(2%).RefertoFigures5and6.Afurther18expressedinterestsinaccreditationarebeinghandled.

Mrs Maureen Primrose MutasaChiefExecutiveOfficer

Figure 1-NumberofAccreditedFacilitiesbyCountry

Figure 2-AccreditationsbyField

CLAP(8)

TLAP(16)

MLAP(9)

IBAP(3)

12

11

10

9

8

7

5

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Figure 5 -NumberofAccreditationApplicationsbyCountry

Figure 6-AccreditationsApplicationsbyField

Figure 4-NumberofAccreditedFacilitiesbySectorFigure 3 -CumulativeNumberofAccreditations

CLAP(2)

TLAP(21)

MLAP(15)

IBAP(3)

IBAP(3)

4

3

10

8

7

9

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33

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77

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By 31 March 2015, SADCAS has cumulatively conducted 87trainingcoursesin11SADCMemberStatesnamely:Botswana(15);DRC (12);Malawi (2);Mozambique (3);Namibia (13); Seychelles(3); SouthAfrica (3)Swaziland (4);Tanzania (11);Zambia (7) andZimbabwe (14). Training courses are generic and designed topromote accreditation and an understanding of the accreditationrequirements.MostofthetrainingcoursesareonISO/IEC17025(51), ISO 15189 (13), ISO/IEC 17020 (16), ISO/IEC 17021 (4),MethodValidation&MeasurementUncertainty(MV&MU)(2)andother(1).Trainingactivitiesgrewby32%.RefertoFigures7,8and9.Over1300participantshavebenefitedfromtheSADCAStrainingcourses.Training isundertakenbyapoolof17registeredtrainerswhocoverthe3officiallanguagesintheregion,English,FrenchandPortuguese.

Figure 7-TrainingCoursesBreakdownbyCountry

Figure 8 -TrainingCoursesbyField

ISO15189(13)

ISO/IEC17025

ISO/IEC17021(4)

MV&MU(2)

ISO/IEC17021(4)

Other(1)

Figure 9-CumulativeNumberofTrainingCourses

12131415

11109

87

56

43

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During the period under review, SADCAS set upAdvisory Committees fortheTestingandCalibrationLaboratoriesProgrammescomprisingof18and13membersrespectivelyfromSADCMemberStatesthatareservicedbySADCAS.TheAdvisoryCommitteeswhichwilladviseSADCASontechnicalmattersareset tomeet in due course.TheAdvisoryCommittee for inspection bodies inZimbabwewhosemembershipwasextendedduringtheperiodunderreviewtoensureagoodbalanceofinterestandexpertise,heldits4thmeetingduringwhichthemembersconsideredthecriteria fortheaccreditationof inspectionbodiesperforminginspectionofmetallicstoragetanks.Thescopewillalsobeextendedto cover lifting equipment as soon as the regulations are promulgated.TheSADCAS–RegulatormodeladoptedinZimbabweisworkingwell.ThemodelisbasedonaMemorandumofUnderstandingbetweenSADCASandtheNationalSocialSecurityAuthority(NSSA)thedelegatedauthorityforoccupationalhealthandsafetyissuesinZimbabwe.SuchabilateralMemorandumofUnderstandingbuttresses the relation between SADCAS and the regulators anddetails howSADCASserviceswillbeutilizedintheregulatorydomain.

In order to monitor the effectiveness and suitability of the SADCASQualityManagementSystem(QMS)andcomplianceofitssystemswithISO/IEC17011,the international standard that SADCAS has to comply with in order to besignatory to the international accreditation arrangement,management reviewswereundertakeninJune2014followingwhichSADCASwentthroughtheprepeer evaluation.The latter review concluded positively on the suitability and

effectivenessofthesystemreaffirmingtheresultsofthecustomersatisfaction surveyundertakenduring the2014/15which showedanimprovementincustomersatisfactionoverthe2013/14resultsandfurthernotingthatonlyonecomplaintwasreceivedduringtheperiodunderreview.RefertoFigure10.

Enhance global acceptance of SADC products and services SADCAShasmadegreatstridestowardsinternationalrecognitionof its TLAP and CLAP having successfully undergone a jointInternationalLaboratoryAccreditationCooperation(ILAC)/AfricanAccreditation Cooperation (AFRAC) pre peer evaluation andfull peer evaluation in May 2015. SADCAS aims to achieve thisinternationalrecognitionbyDecember2015.SADCASisworkingtowardsinternationalrecognitionofitsMLAPandIBAP.Meanwhilethe credibility of SADCAS accreditation services hinges on theTwinning PartnershipArrangement (TPA)with the SouthAfricanNationalAccreditationSystem(SANAS).Throughthisarrangement2certificates(SADCASandSANAS)areissuedwiththeSANAScertificatebeinginternationallyrecognizedasSANASissignatorytointernationalaccreditationarrangements.

InanefforttoaddresstheaccreditationneedsofFrenchspeakingSADCMember States, aTPAwas signed in February 2014withtheTunisianAccreditation Council (TUNAC) with the certificatehandover ceremony subsequently held in September 2014.Translationsof51prioritizedSADCASQualityManagementSystem(QMS)documentsintoFrenchhavebeenfinalized,verifiedandaretobeuploadedontheSADCASwebsite.Atotalof7applicationsfromtheDemocraticRepublicofCongo(DRC)havebeenreceived.EffortsareunderwaytoenableSADCAStoservicetheaccreditationneedsofSADCcountrieswherePortugueseistheofficiallanguagewiththenegotiationsunderway.

SADCASmaintained itsmembership inregionaland internationalaccreditation fora ILAC, the International Accreditation Forum(IAF),AfricanAccreditationCooperation(AFRAC)andtheSADCCooperation inAccreditation (SADCA)andcontinues toactivelyparticipateinthesefora.

Figure 10-OverallSatisfactiononService-2014/15comparedto2013/14

017

36

67 64

0000

2013/14

2014/15Excellent

0

10

20

30

40

50

60

70

80

Very good Good PoorSatisfactory

16

ANNUAL REPORT |

21

Effectively Promote and Market the Benefits and Importance of Accreditation and SADCAS Services

SADCAS’thrustduringtheperiodunderreviewcontinuedtobeon promoting the benefits and importance of accreditation andmarketing SADCAS’ serviceswith 22 targetedmarketing visits in6SADCMemberStates servicedbySADCASbeingundertaken,13 presentationsweremade to stakeholders at national, regionalandinternationalmeetings/workshops/seminarsbySADCAS.ThreeeditionsoftheSADCASofficialnewsletterthePioneeri.e.March,July and November 2014 and the 6th SADCAS 2013/14 annualreport were published during the period under review.Thirteenpress releases on the accredited facilities and the SADCAS topmanagementparticipatedat5certificatehandoverceremoniesforsomeoftheaccreditedfacilities.AdditionalSADCASpromotionalmaterial, theCBAP–MSpamphletwaspublished in the3officiallanguages used in the SADC region i.e. English, French andPortuguese. The SADCAS website was maintained throughouttheperiodof reviewwithnewarticlesbeingpostedunder latestnewsandthedirectoryofaccreditedfacilitiesbeingupdateduponaccreditationoffacilities.VisitationstatisticscontinuetoindicateanincreasinginterestintheSADCASwebsitenotonlybynumberofvisitationsbutalsobythenumberofcountriesvisitingthewebsite.IntheirrespectivecountriesNAFPs,aspertheirmainresponsibilityalsoundertookpromotionalandmarketingactivities.

SADCAScontinuestouseWorldAccreditationDay(WAD)asapromotional tool for accreditation and also to market SADCASservices. The SADC region has been commemorating WADsince2009andovertheyearstheregionhaswitnessedincreasedcommemorationactivitiesandincreasedawarenessonaccreditationissues.In2014activitieswhichwereundertakenbetweenJuneandAugust2014ranged fromconferencesheld inBotswanaLesotho,Namibia, Swaziland andTanzania, to press releases and television

to radio interviews. In some countries targeted marketing visitswere undertaken to companies as part of the commemorations.WorldAccreditationDayhashelped to reachout to thevariousstakeholders thus achieve theobjectiveof creating awareness onthe need and importance of accreditation with more andmoreconformity assessment bodies working towards accreditation asevidenced from the increasing number of applications, expressedinterests and enquiries on accreditation not only by geographicaldiversitybutalsofieldandscopesofapplications.

Build Capacity and Capability of SADCAS

As part of the continuous professional development (CPD)programmeforthe2014/15year,SADCASstaffattendedvarioustrainingprogrammes includingthe internalauditing,marketingandcommunications course, attachments at internationally recognizedaccreditationbodiesetc.OneadditionaltechnicalstaffwasrecruitedandtookuppositioninSADCASinNovember2014.Recruitmentoftheothertechnicalandadministrativestaffisunderway.

As at 31 March 2015 SADCAS had registered 66 TechnicalAssessorsand32LeadAssessorswithsomeassessorsregisteredinmorethanonefield.RefertoFigures11and12forbreakdownofSADCASqualifiedandregisteredassessorsbyfieldofaccreditation.EffortsarecontinuouslyunderwaytodevelopthepoolofassessorstocovertheanticipatedscopesofapplicationstakingintoaccountthekeydevelopmentalsectorsasidentifiedintheSADCIndustrialPolicy, geographical and language diversity in the region. Seven(7) trainee assessors are to undergo further mentoring and anadditional22traineeassessorstrainedundertheSADCSQAMEUEDF10RegionalEconomicIntegrationSupport(REIS)programmearetoundergomentoring.MoreexpertsaretoundergoassessortrainingundertheauspicesoftheSADCSQAMEU/EDF10REISprogramme.


22

For cost effectiveness, the 8thNationalAccreditation Focal Points’(NAFP) annual meeting which was originally scheduled to beundertakeninNovember2014wasrescheduledandheldinFebruary2015inconjunctionwiththemarketingandcommunicationstrainingcourse.DuringtheperiodunderreviewtheoverallperformancebyNAFPsshowedanimprovementwithaverageestimaterealizationfor the2014/15financial yearbeing75%.TheNAFP– Swazilandwasawardedthe2015NAFPcertificateofrecognitionwithNAFP–Botswanaasthe1strunnerupandNAFP-DRCthe2ndrunnerup.

Strive for Sustainability

ThesetupandoperationalizationofSADCASwasfundedbytheNorwegianGovernmenttothetuneofNOK13millionina5yearprojectthatendedinMarch2012.InordertoensurecontinuityofSADCASinthe2013/14financialyear,theNorwegianGovernment

MLAB(15)

TLAP(17)

CLAP(31)

MLAP(6)

IBAP(9)

CBAP(6)

1,000,000

2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

TLAP(26)

CLAP(5)

CBAP(5)

IBAP(5)

Figure 11 -BreakdownofTechnicalAssessorsbyFieldof Accreditation

Figure 12-BreakdownofLeadAssessorsbyFieldof Accreditation

Figure 13-TrendsinIncomefromOperationssince2008/9

providedadditionalfundsamountingtoNOK1.55million.ThereafteranduptoMarch2017,GovernmentsofSADCMemberStatesthatareservicedbySADCASarefundingSADCASoperationalbudgetdeficitofUS$1.171millionoverafiveyearperiodupuntil31March2017.

SADCASbusinessisgrowingnotonlyintermsoffieldandscopeofaccreditationbutalsointermsofsectorandgeographicalcoverage.The number of accreditation applications and expressed interestin accreditation by SADCAS is growing steadily.Over the past 6financialyearssinceSADCASstartedtoofferservices,operationalincomehasbeenincreasing.RefertoFigures13and14.Thefinancialyear2014/15sawa48%increaseinincomefromoperationswithaccreditation income constituting 66 % and training 34% of theoperational income.Refer toFigure15.Governmentdependencyreducedto31%from39%onthepreviousfinancialyear.RefertoFigure16.

BWP

ANNUAL REPORT |

23

AccreditationServices-BWP3,436,996

TrainingServices-BWP1,781,412

Figure 15 -BreakdownofLeadAssessorsbyFieldofAccreditation

Total Operating Income BWP 5,218,407

Figure 16 -Governments/DonorDependeny

BWP

4,000,000

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15

Figure 14 - TrendsinIncomefromOperationssince2008/9-TrainingandAccreditation

1,202,277

891,748635,434

1,921,340

2,320,254

3,436,996

1,290,621

590,571294,373

571,503120,962

1,781,411

2007/8

0%

20%

40%

60%

80%

100%

120%

2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15

Financial Year


24

Marketing and PromotionAccreditation certificate handovers ceremonies and visits

LancetLaboratoriesSwazilandaccreditationhandovercertificateceremony

MrsMaureenMutasa,Hon.MinisterDrDavidParirenyatwaandMr M P Mahlangu with CIMAS directors at the accreditationcertificatehandoverceremony

ChiefMedicalScientificOfficer,MrDavidMatemareceivesSADCASaccreditaitoncertificateforNgangabgweHospitalReferrallab

SADCASCEOhandingovercertificatetoMrMafingeiNyamwanza

CertificateshowoffmomentbyMrMatemaandDrTshipayagae

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SADCASCEOVisitsPhoenixAnalyticalServices

HonourableProfessorMaghembereceivingtheaccreditationcertificateforMZWLfromEngineerKutakamba

MeetingwiththeCentralMedicalLaboratoryStaffinSwaziland

GroupphotowithHonorableProfessorMaghembeaftertheceremony

CentralMedicalLaboratoryStaffatwork

SADCASTechnicalManagermeetswiththeAirMadagascarCalibrationlaboratorystaff.


26

FirstISO/IEC17020courseheldinBotswana

ParticiapntsAttendingtheISO/IEC17025inBotswanaOctober2014 DiscussionsduringtheISO/IEC17025courseinSwaziland

Training and ServicesTraining courses held during the period

ANNUAL REPORT |

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SecondRunner-upsNAFP’sDRCMrsApaulineMatataFezaandMrVikiMbuyaKanama

AwardwinnersMrsSybilDlaminiandPhindileDlamini(NAFP’sSwaziland)SADCASTrainsMoreAssessors

FirstRunner-upMrEdwardMmatliNAFP-BotswanareceivinghiscertificatefromMrsChristineGadzikwaandMrStevenSidney


28

ParticipantsattendingtheSADCAS10th AGM SADCASChair,MrStevenBruceSidneyduringtheSADCAS10th AGM

SADCAannualmeeting ChiefMedicalScientificOfficer,MrDavidMatemareceivesSADCASaccreditaitoncertificateforNgangabgweHospitalReferrallab

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MorningbreakduringtheJointDevelopmentSupportCommitteemeeting

ILACGeneralAssemblyinsession

IAFTCMeetinginprogress

Looking Ahead

Asweapproachthe4thyearofthestrategicperiod2012to2017,wewillcontinuetoconsolidate,streamlineandenhanceSADCASservicedeliverytothetargetpopulationbringinguptospeedthosecountrieswhereaccreditationuptakehasbeenslowandprioritizingactivitiesbasedonanticipateddemand in the immediate to long term and taking into account the key development sectors asidentifiedintheSADCIndustrialPolicy.WewillalsoneedtoenhanceglobalacceptanceofSADCproductsandgrowtheCompany’sowngeneratedrevenuesoastodevelopSADCASintoacredible,sustainableanddynamicorganizationatthecuttingedgeofaccreditationservicedelivery.TodothiswewillneedtocontinuepromotingthebenefitsofaccreditationandmarketingSADCASservices,buildandretainourmost importantassetthe intellectualcapital,skills,experience,knowledgeandexpertiseofourstaff,assessorsandtrainersandcontinuetostrengthenNAFPeffectiveness.Propelledby the commitment and leadership demonstrated by SADCMember States which ismotivatingaccreditation uptake across the community, “Team SADCAS” remains committed to building acredibleaccreditationbodyatthecuttingedgeofaccreditationservicedeliverysoastorealizeofSADCASvision.

____________________________Maureen P Mutasa (Mrs.)ChiefExecutiveOfficer


30

Roles and Responsibilities of the Human Resources and Remuneration Committee

TheHumanResourcesandRemunerationCommittee (HRRC) ispleasedtopresentitsreportforthefinancialyearended31March2015.TheCommitteeoperateswithindefinedtermsofreferenceassetout inBP02:TermsofReferenceoftheHumanResourcesand Remuneration Committee (HRRC) of the SADCAS Board.Themainobjectiveof theHRRC is todevelopand implement acomprehensive human resources policy and strategy which willensurethatSADCASisabletoattract,developandretainthebestpossibleskillsrequiredtosupportcredibleservicestoitsclients.

Duties of the Human Resources and Remuneration Committee

ThemaindutiesoftheHRRCareto:

• Develop and review terms and conditions of staff to ensurecontinued alignment and compliance with legal requirementsandindustrialstandards.

• Consider and make recommendations to the Board on therecruitment,performanceanddismissalofSeniorManagement.

• ReviewstaffsalariesandperformancerewardpaymentsinlinewithmarkettrendsandmakerecommendationstotheBoard.

• Reviewstaffbenefitsandpackages in linewithmarket trendsandmakerecommendationstotheBoard.

• Ensure thecreationofaconduciveworkingenvironmentandequitablemanagementofindustrialrelations.

• Ensure the provision of meaningful support and appropriateeducation and training toemployees.Develop andmonitor asuccessionplanforseniormanagement.

• Ensure the enhancement of SADCAS performance throughinnovativePerformanceandRemunerationManagement.

Membership of the Human Resources and Remuneration Committee

FollowingareviewoftheTermsofReference,theHRRCcomprisedofthreeNon-ExecutiveDirectors,namelyamemberoftheFinance,Risk andAuditCommittee (FRAC)whoduring the2014/15wasMrsChristineEveGadzikwawhoalsochairedtheCommitteeandtwootherNon-ExecutiveDirectorsMessrsVikiMbuyaKanamaandEmmanuelJindawhowereappointedbytheBoardwiththeChiefExecutiveOfficerbeinginvitedtoattendalltheHRRCmeetings.

Meetings of the Human Resources and Remuneration Committee

The termsof referenceof theHRRC require theCommittee tomeet at least twice a year.During the2014/15 financial year, theHRRCmetthreetimes.TherecordsofattendancetothesemeetingsareshowninTable2.

Report Of The Human Resources And Remuneration Committee

Mrs Christine Eve GadzikwaChairHRRC

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Summary of Activities Undertaken During the 2014/15 Year

Duringtheyearunderreviewthefollowingactivities,amongothers,werecarriedout:

• Considered the CEO’s report on the 2013/14 end of year staffperformance;

• Reviewedstaffremuneration;• ReviewedtheCEOandBoard’sperformancecontractsforthe2014/15 financialyear ;• ReviewedtheHRRCTermsofReference(BP02)andinlinewithgood

corporategovernance,proposedthattheHRRCcompriseof3Non-ExecutiveDirectorswiththeCEOattendingallmeetingsandproposedthat2Non-ExecutiveDirectorsbeappointedtoserveontheHRRC;

• Reviewedproposalsforajobgradingandsalarystructuringexercise;• Reviewed proposal for Board remuneration which was subsequently

consideredby theBoardandapprovedat the11thSADCASAnnualGeneralMeetingheldon17March2015.

• Reviewed management’s evaluations and nominations for the 2015NAFPCertificateofRecognition.SelectedtheNAFPawardwinnerandrecommendedtotheBoardforapproval;

• Consideredthepersonnelplanforthe2015/16financialyear ;

• ConsideredtheCEO’sreportonthe2014/15staffmid-termperformanceandnotedtheareasofimprovement;and

• Reviewed theBoardexpertiseand representationmatrix (BP07:Part2)foradequacytogovernSADCAS;

InalltheaboveactivitiesrecommendationsweremadetotheBoard.

Performance Management System

ImplementationoftheSADCASPerformanceManagementSystemwhich was successfully piloted during the 2012/13 financial yearwasongoingduringthe2014/15financialyearbasedontheBoard,Management and staff performance contracts developed andapprovedattheMay2014Boardmeetings.TheHRRCwasgenerallysatisfiedwith the reviews undertaken during the year and notedthe general areas for improvement aswell as the training needs.Theperformancemanagementsystemcontinuestobeaneffectivecommunication tool that has helped to improve communicationwithin the organization andmore importantly has enhanced therealizationoftheimportanceofteamworkforgoalcongruencyandgoalachievementatalllevelsoftheorganization.Realizingtheneedtolinkremunerationtotheperformancemanagementsystem,theHRRC recommended to theBoard that a job grading and salary

Name Status Meeting Dates

2014-05-08 2014-11-27 2015-02-19

MrsChristineEveGadzikwa(Chairman)

Non-ExecutiveDirectorü ü ü

MrVikiMbuyaKanama(Appointedon8May2014)

Non-ExecutiveDirector- ü ü

MrEmmanuelJinda(Appointedon8May2014)

- ü ü

MrsMaureenPrimroseMutasa ExecutiveDirectorü - -

ByInvitationMrVikiMbuyaKanama

Non-ExecutiveDirector ü - -

MrsMaureenPrimroseMutasa ExecutiveDirector - ü ü

Table 2 –RecordofAttendancetoHRRCMeetingsHeldDuringthe2014/15FinancialYear



32

structuring exercise be undertaken during the 2015/16 financialyear and reviewed considered proposals submitted following aninvitationtotenderforthesaidactivities.

Staff Complement

The staff complement increased to five instead of six during theyearunderreviewwiththerecruitmentofaLeadAssessorfortheMedicalLaboratoriesAccreditationProgrammewhotookpositionin SADCAS in November 2014. The recruitment of anotherLead Assessor Testing Laboratories Accreditation Programmewasdeferred to the2015/16financial year as SADCAS failed toget a competent assessorwho is conversant in both English andPortuguese.

Assessors

The pool of registered assessorswho undertake assessments onbehalfofSADCASgrewslightlyfrom36to37TechnicalAssessorsand from 19 to 26 Lead Assessors complemented by the 29registeredTechnical Assessors and 13 registered LeadAssessorsfromSouthAfrica.Afurther25expertsweretrainedasassessorsfortheTesting/CalibrationLaboratoriesAccreditationProgrammesand are due to undergomentoring during the 2015/16 financialyearundertheauspicesoftheSADCEUEDF10REISProgramme.Thepoolofregisteredassessorsissettogrowasmoreandmoreassessors are trained for thevariousprogrammesand taking intoaccountanticipatedscopesofdemandoraccreditation,thelanguageandgeographicaldiversity.

Trainers

ThepoolofTrainerswhoconducttrainingonaccreditationmattersonbehalfofSADCASremainedat17from8outofthe13SADCMemberStatesservicedbySADCASandcoveringallthe3officiallanguagesusedintheregion.

National Accreditation Focal Points

The NAFP Certificate of Recognition was awarded to NAFP -SwazilandwithNAFP–BotswanaandNAFP–DRCasthefirstandsecondrunnersuprespectively.

Remuneration

The members of the Board of Directors did not receive anyremunerationfortheirservicesotherthanrefundforoutofpocketexpenses and an incidental allowance which members receivedwhenattendingmeetingsduringtheyearunderreview.

The total staff costs for theyearwereBWP2983452 includingstafftrainingwhichisencouragedtoensurecontinuousprofessionaldevelopmentofthestaff.

_______________________________Mrs Christine Eve GadzikwaChairHumanResourcesandRemunerationCommittee


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Roles and Responsibilities of the Finance, Risk and Audit Committee

The Finance, Risk and Audit Committee (FRAC) is pleased topresentitsreportforthefinancialyearended31March2015.TheCommitteeoperateswithindefinedtermsofreferenceassetoutinBP01:TermsofReferenceoftheFinance,RiskandAuditCommittee(FRAC)oftheSADCASBoardandtheBotswanaCompaniesAct.

Membership of the Finance, Risk and Audit Committee

Allmembersof theBoardappointed to serveon theFRAC,areindependentNon - Executive directors.During the financial yearunder review, MsVerily Molatedi chaired the FRAC.The othermemberswereMr StevenBruce Sidneywhomupon election asBoardChairman relinquished hismembership on the FRAC,Mrs

Christine Eve Gadzikwa and Mr Alfredo Filipe Sitoe who wasappointed as a member of the FRAC at the May 2014 Boardmeeting.TheChiefExecutiveOfficerandtheFinancialAdministratorattendedalltheFRACmeetingsbyinvitation.

Meetings of the Finance, Risk and Audit Committee

The terms of reference of the FRAC require theCommittee tomeet at least four timesa year. Normally theCommitteemeetsin conjunctionbutbefore theBoardmeeting, except in Februarywhenthemeetingisheldearliertoreviewthebudgetforthenextfinancialyear.

During the year under review, the FRAC met four times andreported to the Board accordingly.The records of attendance tothesemeetingsareshowninTable3below.

Mrs Verily MolatediChairFRAC

Report Of The Finance,Risk and Audit Committee

Name Status Meeting Dates

2014-05-08 2014-08-21 2014-11-27 2015-02-09

MsVerilyMolatedi(Chairman) Non-ExecutiveDirector

Apology ü Apology ü

MrStevenBruceSidney(Relinquished membership on 8 May 2014)

Non-ExecutiveDirector

ü - - -

MrsChristineEveGadzikwa Non-ExecutiveDirector

ü ü ü ü

MrAlfredoFilipeSitoe(Appointed on 8 May 2014)

Non-ExecutiveDirector

- ü ü ü

ByInvitationMrsMaureenPrimroseMutasa SADCASChief

ExecutiveOfficer

ü ü ü ü

MrsLaureenRutendoGudo SADCASFinancialAdministrator

ü Apology ü ü

Table 3-RecordofAttendancetoFRACMeetingsHeldDuringthe2014/15FinancialYear


34

Summary of Activities Undertaken During the 2014/15 Year

Duringtheyearunderreview,thefollowingactivities,amongothers,werecarriedout:

• Reviewedthemonthlymanagementaccounts;• Monitoredcapitaladequacylevelsthroughouttheyear ;• ReviewedtaxstudyreportbyKPMG,recommendedtotheBoard

thatKPMGbeengagedtoassisttheCompanyinregularizingtaxmatterswithBURSandmonitoredtheregularizationprocess;

• Reviewedtheexternalauditprogrammeofaction;• Reviewedandapprovedtheauditfile;• Monitoredtheexternalauditor’sindependence;• Reviewedandcommentedon theannualfinancial statements

andtheaccountingpolicies;• Reviewedtheexternalauditor’sLetterofInternalControland

Management’sresponses;• Reviewedtheperformanceofexternalauditorsand

recommendedtheirappointmentandtheapprovaloftheirfees;• Metwiththeexternalauditors;• Reviewed Governments contribution towards SADCAS

sustainabilityanddonormatrix;• ReviewedtheCompany’sriskprofile(BP06);• ReviewedtheFRAC’sTermsofReference(BP01)foradequacy;• Reviewedthedraftbudgetforthe2015/16financialyear ;• Reviewedmanagement’sproposalthatAONBotswanaprovide

insurance broking services to SADCAS during the 2015/16financialyear.

• Reviewedtheaccreditationfeesforthe2015/16financialyear.

InalltheaboveactivitiesrecommendationsweremadetotheBoard.

Annual Financial Statements

The FRAC has evaluated the annual financial statements for theyear ended 31March 2015 and ensured that they comply, in allmaterial aspects, with the requirements of the Companies Act

Report Of The Finance, Risk And Audit Committee

and appropriate International Financial Reporting Standards.TheCommitteethereforerecommendedtheannualfinancialstatementsfor approval to theBoard.TheBoard subsequently approved thefinancialstatementsattheAugust2014meeting.

Internal Auditor

TheFRACtakingintoaccountthesizeoftheCompanydecidedthatthereisnoneedforaninternalAuditfunction.

External Auditors

TheSADCASGeneralAssemblyatits10thAnnualGeneralMeetingheld on 17 March 2015 appointed PricewaterhouseCoopers toundertakethefinancialauditfortheyearending31March2015.

Risk Management and Internal Control

TheFRAChasbeendelegatedresponsibilitybytheBoardfortheongoingmonitoringofthescopeandeffectivenessofthesystemsestablishedbymanagementtoidentify,assess,manageandmonitorfinancialandnon-financialrisksandtheeffectivenessoftheinternalcontrols. The Committee reviewed the company’s overall riskprofile including a registerof all the identified key risks, the likelyimpactthatthoserisks,theirlikelyimpactandthecontrolmeasuresthathavebeenputintoplacetomitigatetherisksidentified.

___________________________________Ms Verily MolatediChairFinance,RiskandAuditCommittee

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Southern African Development Community Acreditation Service Limited

( A Company Limited by Guarantee) (Registration No: 2005/6912)

Annual Financial Statements for the year ended 31 March 2015


36

ThedirectorsofSouthernAfricanDevelopmentCommunityAccreditationServiceLimitedareresponsiblefortheannualfinancialstatementsandallotherinformationpresentedtherewith.TheirresponsibilityincludesthemaintenanceoftrueandfairfinancialrecordsandthepreparationofannualfinancialstatementsinaccordancewithInternationalFinancialReportingStandards.

Thecompanymaintainssystemsofinternalcontrolswhicharedesignedtoprovidereasonableassurancethattherecordsaccuratelyreflectitstransactionsandtoprovideprotectionagainstseriousmisuseorlossofthecompanyassets.Thedirectorsarealsoresponsibleforthedesign,implementation,maintenanceandmonitoringofthesesystemsofinternalfinancialcontrols.Nothinghascometotheattentionofthedirectorstoindicatethatanysignificantbreakdowninthefunctioningofthesesystemshasoccurredduringtheyearunderreview.

Thegoingconcernbasishasbeenadopted inpreparing theannualfinancial statements. Thedirectorshaveno reason tobelieve that thecompanywillnotbeagoingconcernintheforeseeablefuturebasedonforecastsandavailablecashresources.

OurexternalauditorsconductanexaminationofthefinancialstatementsinconformitywithInternationalStandardsonAuditing,whichincludetestsoftransactionsandselectivetestsofinternalaccountingcontrols.Regularmeetingsareheldbetweenmanagementandourexternalauditorstoreviewmattersrelatingtointernalcontrolsandfinancialreporting.TheexternalauditorshaveunrestrictedaccesstotheBoardofDirectors.

Thefinancialstatementssetoutonpages38to63andsupplementaryinformationonAnnexureIwasauthorisedforissuebytheBoardofDirectorsandaresignedonitsbehalfby:

Director_____________________________ Director _____________________________

Statement Of Responsibility By The Board Of Directorsfor the year ended 31 March 2015

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37

Report on the financial statements

WehaveauditedtheaccompanyingannualfinancialstatementsofSouthernAfricanDevelopmentCommunityAccreditationServiceLimited,whichcomprisethestatementoffinancialpositionasat31March2015,andthestatementsofcomprehensiveincome,changesinfundsandcashflowsfortheperiodthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation,assetoutonpages38to63

Directors’ Responsibility for the Financial Statements

ThecompanydirectorsareresponsibleforthepreparationoffinancialstatementsthatgiveatrueandfairviewinaccordancewithInternationalFinancial Reporting Standards, and for such internal control as the directors determine is necessary to enable the preparationof financialstatementsthatarefreefrommaterialmisstatements,whetherduetofraudorerror.

Auditor’s Responsibility

Ourresponsibility is toexpressanopiniononthesefinancial statementsbasedonouraudit. Weconductedouraudit inaccordancewithInternationalStandardsonAuditing.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassurancewhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselecteddependontheauditor’sjudgement,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolsrelevanttotheentity’spreparationthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.

Opinion

In our opinion, the financial statements give a true and fair view of, the financial position of SouthernAfricanDevelopment CommunityAccreditationServiceLimitedasat31March2015,anditsfinancialperformanceanditscashflowsfortheperiodthenendedinaccordancewithInternationalFinancialReportingStandards.

Individual Practising Member: B D Phirie 2014-09-22Membership Number: 19900312 Gaborone

Independent Auditor’s Report to the Members of Southern African Development Community Accreditation Service Limited

PricewaterhouseCoopers,Plot50371,FairgroundsOfficePark,Gaborone,POBox294,Gaborone,BotswanaT:(267)3952011,F:(267)3973901,www.pwc.com/bw

CountrySeniorPartner:BDPhiriePartners:RBinedell,RPDeSilva,ASEdirisinghem,SKKWijesena


38

Statement Of Comprehensive Income for the year ended 31 March 2015

2015 2014 Note P P Income 5 5,877,743 4,521,199 Directexpenses (1,780,741) (1,235,682) 4,097,002 3,285,517 Otheroperatingincome 6 1,030,387 659,792 Administrativeexpenses (5,063,500) (3,949,766) Operating surplus/ (deficit) 7 63,889 (4,457) Financeincome 8 57,381 39,747 Surplus before income tax 121,270 35,290 Incometaxcredit 9 4,881 - Surplus for the year 126,151 35,290 Othercomprehensiveincome - - Total comprehensive surplus for the year 126,151 35,290

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2015 2014 Note P P ASSETS Non-current assets Property,plantandequipment 10 254,413 209,311Deferredincometaxasset 12 4,881 - 259,294 209,311 Current assets Tradeandotherreceivables 11 368,543 463,552Cashandcashequivalents 13 2,357,884 3,421,907 2,726,427 3,885,459 Total assets 2,985,721 4,094,770 FUNDS AND LIABILITIES Funds and reserves Accumulateddeficit (347,967) (474,118) Non current liabilities Capitalgrants 14 254,414 209,312 Current liabilities Deferredincome 15 1,026,947 2,093,425Tradeandotherpayables 16 2,052,327 2,266,151 3,079,274 4,359,576Total funds and liabilities 2,985,721 4,094,770

Statement Of Financial Positionfor the year ended 31 March 2015


40

Statement Of Changes in Fundsfor the year ended 31 March 2015

Accumulated deficit Total P P Balance at 1 April 2013 (509,408) (509,408) Comprehensive income Comprehensivesurplusfortheyear 35,290 35,290 Balance at 31 March 2014 (474,118) (474,118) Balance at 1 April 2014 (474,118) (474,118) Comprehensive income Comprehensivesurplusfortheyear 126,151 126,151 Balance at 31 March 2015 (347,967) (347,967)

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Statement Of Cash Flowsfor the year ended 31 March 2015

2015 2014 Note P P Cash flows from operating activities Cash(usedin)/generatedfromoperations 17 (1,121,969) 2,453,681Netcash(usedin)/generatedfromoperatingactivities (1,121,969) 2,453,681 Cash flows from investing activities Purchaseofproperty,plantandequipment 10 (114,448) (22,271)Proceedsfromdisposalofproperty,plantandequipment 565 -Interestreceived 8 57,381 39,747 Netcash(usedin)/generatedfrominvestingactivities (56,502) 17,476 Cash flows from financing activities: Capitalgrantsreceived 14 114,448 22,271Netcashgeneratedfromfinancingactivities 114,448 22,271 Net change in cash and cash equivalents (1,064,023) 2,493,428Cashandcashequivalentsatbeginningofyear 3,421,907 928,479 Cash and cash equivalents at end of year 13 2,357,884 3,421,907


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Notes To The Financial Statementsfor the year ended 31 March 2015

1. General information

SouthernAfricanDevelopmentCommunityAccreditationServiceLimitedisasubsidiarityinstitutionofSADCincorporatedinBotswanaasacompanylimitedbyguaranteethatprovidesaccreditationservicestolaboratories(testingandcalibration),certificationbodies(managementsystems/product/personnel)andinspectionbodies.

Thefinancialstatementssetoutonpages38to63havebeenapprovedbytheBoardofDirectorson2September2015.

2. Summary of significant accounting policies

Theprincipalaccountingpoliciesappliedinthepreparationofthesefinancialstatementsaresetoutbelow.Thesepolicieshavebeenconsistentlyappliedtoalltheyearspresented,unlessotherwisestated.

2.1. Basis of preparation

ThefinancialstatementsarepreparedinaccordancewithInternationalFinancialReportingStandards(IFRS).Thefinancialstatementshave beenprepared under the historical cost convention asmodifiedby themeasurementof certain financial assets and financialliabilitiesatfairvalue.

ThepreparationoffinancialstatementsinconformitywithIFRSrequirestheuseofcertainaccountingestimatesandassumptionsthataffectthereportedamountsofassetsandliabilitiesanddisclosureofcontingentassetsandliabilitiesatthedateofthefinancialstatementsandthereportedamountsofrevenueandexpensesduringthereportingperiod.Althoughtheseestimatesarebasedonmanagement’sbestknowledgeofthecurrenteventsandactions,actualresultsmayultimatelydifferfromthoseestimates.Italsorequiresmanagementtoexerciseitsjudgmentintheprocessofapplyingthecompany’saccountingpolicies.

Estimatesandjudgmentsarecontinuallyevaluatedbasedonhistoricalexperienceandotherfactors, includingexpectationsof futureeventsthatarebelievedtobereasonableunderthecircumstances.

2.1.1. Adoption of standards in the current financial year

(a) New and amended standards adopted by the company

Thefollowingnewstandards,amendmentsandinterpretationstoexistingstandardsaremandatoryforthecompany’saccountingperiodsbeginningonorafter1April2014.

• IAS36:‘Impairmentofassets’-addressthedisclosureofinformationabouttherecoverableamountofimpairedassetsifthatamountisbasedonfairvaluelesscostofdisposal(effectivefrom1January2014).

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(b) New and amended standards applicable to the current period but not applicable to the company

Managementassessedtherelevanceofthefollowingnewstandards,amendmentsandinterpretationswithrespecttothecompany’soperationsandconcludedthattheyarenotrelevanttothecompany.

• IAS32:‘Financialinstruments:Presentation’-clarifiessomeoftherequirementsforoffsettingfinancialassetsandfinancialliabilitiesonthebalancesheet(effectivefrom1January2014).

• IAS39onnovationofderivatives -provide relief fromdiscontinuinghedgeaccountingwhennovationof ahedginginstrumenttoaCCPmeetsspecifiedcriteria.SimilarreliefwillbeincludedinIFRS9:‘FinancialInstruments’(effectivefrom1January2014)

• IFRS10:‘Consolidatedfinancialstatements’,IFRS12andIAS27forinvestmententities-amendmentsgiveanexceptiontoentitiesthatmeetan‘investmententity’definitionandwhichdisplayparticularcharacteristics(1January2014).

• IFRIC21:‘Accountingforlevies’-setsouttheaccountingforanobligationtopayalevythatisnotincometax(effectivefrom1January2014).

2.1.2 Adoption of standards in future financial year

(a) Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the company

Thefollowingnewstandards,amendmentsandinterpretationstoexistingstandardsaremandatoryforthecompany’saccountingperiodsbeginningonorafter1April2015.Thesehavenotbeenearlyadoptedbythecompany.

• IFRS9:‘FinancialInstruments’(2009)-addressesclassificationandmeasurementoffinancialassetsand replacesthemultipleclassificationandmeasurementmodelsinIAS39withasinglemodelthathasonly twoclassificationcategories:amortisedcostandfairvalue(effectivefrom1January2018).

• IFRS9:‘FinancialInstruments’(2010)-includeguidanceonfinancialliabilitiesandderecognitionoffinancialinstruments(effectivefrom1January2018).

• IFRS9:‘Financialinstruments’,ongeneralhedgeaccounting-establishesamoreprinciples-basedapproachto hedge accounting and addresses inconsistencies and weaknesses in the current model in IAS 39(effectivefrom1January2018).


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(a) Standards, amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the company (continued)

• IAS1:‘Presentationof financial statements’ - clarifies guidance in IAS1onmateriality and aggregation, thepresentationofsubtotals,thestructureoffinancialstatementsandthedisclosureofaccountingpolicies(effective1January2016).

• IAS 19:‘Employee benefits - simplify the accounting for contributions that are independent of the numberof yearsof employee service, for example, employee contributions that are calculated according to a fixedpercentageofsalary(effectivefrom1July2014).

• IFRS13:‘Fairvaluemeasurement’- IFRS13toclarifythat itdidnot intendtoremovetheabilitytomeasureshort-termreceivablesandpayablesatinvoiceamounts(effectivefrom1July2014).

• IAS16:‘Property,plantandequipment’,andIAS38:‘Intangibleassets’-Bothstandardsareamendedtoclarifyhowthegrosscarryingamountandtheaccumulateddepreciationaretreatedwhereanentityusestherevaluationmodel(effectivefrom1July2014).

Management is currently assessing the impact of the application of these new standards, amendments andinterpretations on the company’s financial statements in the period of initial application. At this time, theadoptionofthesestandardsandinterpretations isonlyexpectedtohaveanimpactontheclassificationanddisclosureofitemsinthecompany’sfinancialstatements.

(b) New standards, amendments and interpretations which are not relevant to the company’s operations

• IFRS14:‘Regulatorydeferralaccounts’-aninterimstandardontheaccountingforcertainbalancesthatarisefromrate-regulatedactivities(‘regulatorydeferralaccounts’)(effectivefrom1January2016).

• IFRS2:‘Sharebasedpayment’-clarifiesthedefinitionofa‘vestingcondition’andseparatelydefines‘performancecondition’and‘servicecondition’(effectivefrom1July2014).

• IFRS3:‘Business combinations’ - clarify that anobligation topaycontingent considerationwhichmeets thedefinitionofafinancialinstrumentisclassifiedasafinancialliabilityorasequity,onthebasisofthedefinitionsinIAS32:‘Financialinstruments:Presentation’(effectivefrom1July2014).

• IFRS 8: ‘Operating segments’ - require disclosure of the judgements made by management in aggregatingoperatingsegments(effectivefrom1July2014).

• IAS24:‘Relatedpartydisclosures’-include,asarelatedparty,anentitythatprovideskeymanagementpersonnelservicestothereportingentityortotheparentofthereportingentity(effectivefrom1July2014).


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(b) New standards, amendments and interpretations which are not relevant to the company’s operations (continued)

• IAS19:‘EmployeeBenefits’-clarifiesthatmarketdepthofhighqualitycorporatebondsisassessedbasedonthecurrencyinwhichtheobligationisdenominated,ratherthanthecountrywheretheobligationislocated.Whenthereisnodeepmarketforhighqualitycorporatebondsinthatcurrency,governmentbondratesmustbeused(effectivefrom1January2016).

• IAS34:‘InterimFinancialReporting’-requireinterimdisclosuresmusteitherbeintheinterimfinancialstatementsorincorporatedbycross-referencebetweentheinterimfinancialstatementsandwherevertheyareincludedwithinthegreaterinterimfinancialreport(e.g.,inthemanagementcommentaryorriskreport)anditspecifiedthattheotherinformationwithintheinterimfinancialreportmustbeavailabletousersonthesametermsastheinterimfinancialstatementsandatthesametime.Ifusersdonothaveaccesstotheotherinformationinthismanner,thentheinterimfinancialreportisincomplete(effectivefrom1January2016).

• IFRS15:‘Revenuefromcontractswithcustomers”-Establishesprinciples forreportinguseful informationtousersofthefinancialstatementsaboutthenature,amount,timinganduncertaintyofrevenueandcashflowsarisingfromanentity’scontractswithcustomers.(effectivefrom1January2017).

• IFRS 7: ‘Financial Instruments; Disclosures’-Applicability of the offsetting disclosures to condensed interimfinancialstatements. Itremovesthephrase ’andinterimperiodswithinthoseannualperiods’ fromparagraph44R,clarifyingthattheseIFRS7disclosuresarenotrequiredinthecondensedinterimfinancialreport(effectivefrom1January2016).

• IFRS7:‘FinancialInstruments;Disclosures’-clarifiesthataservicingcontractthatincludesafeecanconstitutecontinuinginvolvementinafinancialasset(effectivefrom1January2016).

• IFRS5: ‘Non-currentAssetsHeld for Sale andDiscontinuedOperations’ - clarifies that changing fromoneofthesedisposalmethodstotheothershouldnotbeconsideredtobeanewplanofdisposal,ratheritisacontinuationoftheoriginalplan(effectivefrom1January2016).

• IAS40:‘Investmentproperty’-clarifiesthatIAS40andIFRS3arenotmutuallyexclusiveandassistspreparerstodistinguishbetweeninvestmentpropertyandowner-occupiedproperty(effectivefrom1July2014).

• IFRS13:‘Fairvaluemeasurement’(Amendment)-clarifiesthatitdidnotintendtoremovetheabilitytomeasureshort-termreceivablesandpayablesatinvoiceamounts(effectivefrom1July2014).


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(b) New standards, amendments and interpretations which are not relevant to the company’s operations (continued)

• IFRS1:‘FirsttimeadoptionofIFRS’(Amendment)-clarifiesthat,whereanewversionofastandardisnotyetmandatorybutisavailableforearlyadoption;afirst-timeadoptercanuseeithertheoldornewversion,providedthesamestandardisappliedinallperiodspresented(effectivefrom1July2014).

• IAS16;‘Property,plantandequipment’andIAS41,‘Agriculture’onbearerplants-explainsthatabearerplantnotyetinthelocationandconditionnecessarytobearproduceistreatedasaself-constructedasset(effective1January2016).

• IAS16;‘Property,plantandequipment’andIAS38,’Intangibleassets’,ondepreciationandamortisation-clarifiesthattheuseofrevenuebasedmethodstocalculatethedepreciationofanasset isnotappropriatebecauserevenue generated by an activity that includes the use of an asset generally reflects factors other than theconsumptionoftheeconomicbenefitsembodiedintheasset(effectivefrom1January2016).

• IAS27;‘Separatefinancialstatements’onequityaccounting-restorestheoptiontousetheequitymethodtoaccountforinvestmentsinsubsidiaries,jointventuresandassociatesinanentity’sseparatefinancialstatements(effective1January2016).

• IFRS10:‘Consolidatedfinancialstatements’andIAS28,’Investmentsinassociatesandjointventures’-eliminatestheinconsistencybetweenIFRS10andIAS28.Ifthenon-monetaryassetssoldorcontributedtoanassociateorjointventureconstitutea‘business’,thenthefullgainorlosswillberecognisedbytheinvestor(effectivefrom1January2016).

• IFRS10:‘Consolidatedfinancialstatements’andIAS28,’Investmentsinassociatesandjointventures’onapplyingtheconsolidationexemption-clarifiestheapplicationoftheconsolidationexceptionforinvestmententitiesandtheirsubsidiaries(effective1January2016).

• IFRS11:‘Jointarrangements’-addsnewguidanceonhowtoaccountfortheacquisitionofaninterestinajointoperationthatconstitutesabusinessandspecifiestheappropriateaccountingtreatmentforsuchacquisitions(effectivefrom1January2016).

• IFRS3:‘Businesscombinations’-clarifiesthattheaccountingfortheformationofanyjointarrangementunderIFRSandalsoclarifiesthatthescopeexemptiononlyappliesinthefinancialstatementsofthejointarrangementitself(effectivefrom1July2014).


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2.2 Foreign currency translation

2.2.1 Functional and presentation currency

Items included in the financial statements of the company aremeasured using the currency of the primaryeconomic environment in which the entity operates (‘the functional currency’).The financial statements arepresentedinBotswanaPula,whichisthecompany’sfunctionalandpresentationcurrency.

2.2.2 Transactions and balances

Foreigncurrencytransactionsaretranslatedintothefunctionalcurrencyusingtheexchangeratesprevailingatthedatesofthetransactions.Foreignexchangegainsandlossesresultingfromthesettlementofsuchtransactionsand fromthetranslationatyear-endexchangeratesofmonetaryassetsand liabilitiesdenominated in foreigncurrenciesarerecognisedinthestatementofcomprehensiveincome.

2.3 Property, plant and equipment

Property,plantandequipmentareincludedathistoricalcostlessdepreciation.Historicalcostincludesexpenditurethatisdirectlyattributabletotheacquisitionoftheitems.

Subsequentcostsareincludedintheasset’scarryingamountorrecognisedasaseparateasset,asappropriate,onlywhenitisprobablethatfutureeconomicbenefitsassociatedwiththeitemwillflowtothecompanyandthecostoftheitemcanbemeasuredreliably.Thecarryingamountofthereplacedpartisderecognised.Allotherrepairsandmaintenancearechargedtothestatementofcomprehensiveincomeduringthefinancialperiodinwhichtheyareincurred.

Depreciationiscalculatedonthestraight-linemethodtowriteoffthecostofeachassettotheirresidualvaluesovertheirestimatedusefullivesasfollows:

Fixturesandfittings 10yearsOfficeequipment 6.67yearsComputerequipment 4years

Theassets’residualvaluesandusefullivesarereviewed,andadjustedifappropriate,ateachstatementoffinancialpositiondate.Anasset’scarryingamountiswrittendownimmediatelytoitsrecoverableamountiftheasset’scarryingamountisgreaterthanitsestimatedrecoverableamount.

Gainsand lossesondisposalsaredeterminedbycomparingproceedswithcarryingamount.Theseare included in thestatementofcomprehensiveincome.



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2.4 Impairment of non-financial assets

Assetsthathaveanindefiniteuseful lifearenotsubjecttoamortisationandaretestedannuallyfor impairment.Assetsthataresubject to amortisation are reviewed for impairmentwhenever eventsor changes in circumstances indicate that the carryingamountmaynotberecoverable.Animpairmentlossisrecognisedfortheamountbywhichtheasset’scarryingamountexceedsitsrecoverableamount.Therecoverableamountisthehigherofanasset’sfairvaluelesscoststosellandvalueinuse.Forthepurposesofassessingimpairment,assetsaregroupedatthelowestlevelsforwhichthereareseparatelyidentifiablecashflows(cash-generatingunits).Non-financialassetsotherthangoodwillthatsufferedimpairmentarereviewedforpossiblereversaloftheimpairmentateachreportingdate.

2.5 Financial assets

2.5.1 Classification

The company classifies its financial assets in the following categories: at fair value through profit or loss, loans andreceivables,andavailableforsale.Theclassificationdependsonthepurposeforwhichthefinancialassetswereacquired.Managementdeterminestheclassificationofitsfinancialassetsatinitialrecognition.

(a) Financialassetsatfairvaluethroughprofitorloss

Financialassetsatfairvaluethroughprofitorlossarefinancialassetsheldfortrading.Afinancialassetisclassifiedinthiscategoryifacquiredprincipallyforthepurposeofsellingintheshortterm.Derivativesareclassifiedasheldfortradingunlesstheyaredesignatedashedges.Assetsinthiscategoryareclassifiedascurrentassets.

(b) Loans and receivables

Loansandreceivablesarenon-derivativefinancialassetswithfixedordeterminablepaymentsthatarenotquotedinanactivemarket.Theyareincludedincurrentassets,exceptformaturitiesgreaterthan12monthsafterthestatementoffinancialpositiondate.Theseareclassifiedasnon-currentassets.Thecompany’sloansandreceivablescomprise‘tradeandotherreceivables’andcashandcashequivalentsinthestatementoffinancialposition.

(c) Available-for-salefinancialassets

Available-for-salefinancialassetsarenon-derivativesthatareeitherdesignated inthiscategoryornotclassified inanyoftheothercategories.Theyareincludedinnon-currentassetsunlessmanagementintendstodisposeoftheinvestmentwithin12monthsofthestatementoffinancialpositiondate.


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2.5 Financial assets (countinued) 2.5.2 Recognition and measurement

Regular purchases and salesof financial assets are recognisedon the trade-date– thedateonwhich the companycommitstopurchaseorselltheasset.Investmentsareinitiallyrecognisedatfairvalueplustransactioncostsforallfinancialassetsnotcarriedatfairvaluethroughprofitorloss.

Financialassetscarriedatfairvaluethroughprofitorlossisinitiallyrecognisedatfairvalue,andtransactioncostsareexpensedinthestatementofcomprehensiveincome.

Financialassetsarederecognisedwhentherightstoreceivecashflowsfromtheinvestmentshaveexpiredorhavebeentransferredandthecompanyhastransferredsubstantiallyallrisksandrewardsofownership.Available-for-salefinancialassetsandfinancialassetsatfairvaluethroughprofitorlossaresubsequentlycarriedatfairvalue.Loansandreceivablesarecarriedatamortisedcostusingtheeffectiveinterestmethod.

Gainsorlossesarisingfromchangesinthefairvalueofthe‘financialassetsatfairvaluethroughprofitorloss’categoryarepresentedintheincomestatementwithin‘other(losses)/gains–net’intheperiodinwhichtheyarise.Dividendincomefromfinancialassetsatfairvaluethroughprofitorlossisrecognisedintheincomestatementaspartofotherincomewhenthecompany’srighttoreceivepaymentsisestablished.

Changesinthefairvalueofmonetarysecuritiesdenominatedinaforeigncurrencyandclassifiedasavailable-for-saleareanalysedbetweentranslationdifferencesresultingfromchangesinamortisedcostofthesecurityandotherchangesinthecarryingamountofthesecurity.Thetranslationdifferencesonmonetarysecuritiesarerecognisedinprofitorloss,whiletranslationdifferencesonnon-monetarysecuritiesarerecognisedinequity.Changesinthefairvalueofmonetaryandnon-monetarysecuritiesclassifiedasavailable-for-salearerecognisedinequity.

Whensecuritiesclassifiedasavailableforsalearesoldorimpaired,theaccumulatedfairvalueadjustmentsrecognisedinequityareincludedinthestatementofcomprehensiveincomeas‘gainsandlossesfrominvestmentsecurities’.

Interestonavailable-for-salesecuritiescalculatedusingtheeffectiveinterestmethodisrecognisedinthestatementofcomprehensive incomeaspartofother income.Dividendsonavailable-for-saleequity instrumentsare recognised inthe statementof comprehensive incomeaspartofother incomewhen the company’s right to receivepayments is

established.



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2.5 Financial assets (countinued)

Thefairvaluesofquotedinvestmentsarebasedoncurrentbidprices.Ifthemarketforafinancialassetisnotactive(andforunlistedsecurities),thecompanyestablishesfairvaluebyusingvaluationtechniques.Theseincludetheuseofrecentarm’slengthtransactions,referencetootherinstrumentsthataresubstantiallythesame,discountedcashflowanalysis,and

optionpricingmodelsmakingmaximumuseofmarketinputsandrelyingaslittleaspossibleonentity-specificinputs.

Thecompanyassessesateachstatementoffinancialpositiondatewhetherthereisobjectiveevidencethatafinancialassetoragroupoffinancialassetsisimpaired.Inthecaseofequitysecuritiesclassifiedasavailableforsale,asignificantorprolongeddeclineinthefairvalueofthesecuritybelowitscostisconsideredasanindicatorthatthesecuritiesareimpaired.Ifanysuchevidenceexistsforavailable-for-salefinancialassets,thecumulativeloss–measuredasthedifferencebetweentheacquisitioncostandthecurrentfairvalue,lessanyimpairmentlossonthatfinancialassetpreviouslyrecognisedinprofitorloss–isremovedfromequityandrecognisedinthestatementofcomprehensiveincome.Impairmentlossesrecognised in the statementof comprehensive incomeon equity instruments are not reversed through the incomestatement.

Therewerenofinancialassetscategorisedasfairvaluethroughprofitorlossoravailableforsaleassetsrestatedatthestatementoffinancialpositiondate.

2.5.3 Offsetting financial instruments

Financialassetsandliabilitiesareoffsetandthenetamountreportedinthestatementoffinancialpositionwhenthereisalegallyenforceablerighttooffsettherecognisedamountsandthereisanintentiontosettleonanetbasis,orrealisetheassetandsettletheliabilitysimultaneously.

2.5.4 Impairment of financial assets

Thecompanyassessesateachstatementoffinancialpositiondatewhetherthereisobjectiveevidencethatafinancialassetoragroupoffinancialassetsisimpaired.ImpairmenttestingoftradereceivablesisdescribedinNote2.6.

2.6 Trade receivables

Tradereceivablesare recognised initiallyat fairvalueandsubsequentlymeasuredatamortisedcostusing theeffective interestmethod, less provision for impairment.A provision for impairment of trade receivables is establishedwhen there is objectiveevidencethatthecompanywillnotbeabletocollectallamountsdueaccordingtotheoriginaltermsofreceivables.Significantfinancial difficulties of the debtor, probability that the debtorwill enter bankruptcy or financial reorganisation, and default ordelinquencyinpaymentsareconsideredindicatorsthatthetradereceivableisimpaired.


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2.6 Trade receivables (countinued)

Theamountoftheprovisionisthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflows,discountedattheeffectiveinterestrate.Theamountoftheprovisionisrecognisedinthestatementofcomprehensiveincome.Whenatradereceivableisuncollectible,itiswrittenoffagainsttheallowanceaccountfortradereceivables.Subsequentrecoveriesof amountspreviouslywrittenoff are creditedasother income in the income statement. Subsequent recoveriesofamountspreviouslywrittenoffarecreditedasotherincomeintheincomestatement.

2.7 Cash and cash equivalents

Cashandcashequivalentsincludescashinhand,depositsheldatcallwithbanks,othershort-termhighlyliquidinvestmentswithoriginalmaturitiesofthreemonthsorless,andbankoverdrafts.Bankoverdraftsareshownwithinborrowingsincurrentliabilitiesonthestatementoffinancialposition.

2.8 Provisions

Provisionsarerecognisedwhenthecompanyhasapresentlegalorconstructiveobligationasaresultofpastevents;itisprobablethatanoutflowofresourceswillberequiredtosettletheobligation;andtheamounthasbeenreliablyestimated.

Wherethereareanumberofsimilarobligations,thelikelihoodthatanoutflowwillberequiredinsettlementisdeterminedbyconsideringtheclassofobligationsasawhole.Aprovisionisrecognisedevenifthelikelihoodofanoutflowwithrespecttoanyoneitemincludedinthesameclassofobligationsmaybesmall.

Provisionsaremeasuredatthepresentvalueoftheexpendituresexpectedtoberequiredtosettletheobligationusingapre-taxratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheobligation.Theincreaseintheprovisionduetopassageoftimeisrecognisedasinterestexpense.

2.9 Trade accounts payable

Tradepayables areobligations to pay for goodsor services that have been acquired in theordinary courseof business fromsuppliers.Accountspayableareclassifiedascurrentliabilitiesifpaymentisduewithinoneyearorless(orinthenormaloperatingcycleofthebusinessiflonger).Ifnot,theyarepresentedasnon-currentliabilities.

Tradeaccountspayablearerecognisedinitiallyatfairvalueandsubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.

2.10 Borrowings

Borrowingsarerecognisedinitiallyatfairvalue,netoftransactioncostsincurred.Borrowingsaresubsequentlystatedatamortisedcost;anydifferencebetweentheproceeds(netoftransactioncosts)andtheredemptionvalueisrecognisedinthestatementofcomprehensiveincomeovertheperiodoftheborrowingsusingtheeffectiveinterestmethod.

Borrowingsareclassifiedascurrentliabilitiesunlessthecompanyhasanunconditionalrighttodefersettlementoftheliabilityforatleast12monthsafterthestatementoffinancialpositiondate.



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2.11 Operating leases

Leasesinwhichasignificantportionoftherisksandrewardsofownershipareretainedbythelessorareclassifiedasoperatingleases.Paymentsmadeunderoperatingleases(netofanyincentivesreceivedfromthelessor)arechargedtothestatementofcomprehensiveincomeonastraight-linebasisovertheperiodofthelease.

2.12 Capital grants

Grantincomeisrecognisedattheirfairvaluewherethereisareasonableassurancethatthegrantwillbereceivedandthecompanywillcomplywithallattachedconditions.

Capitalgrantsrelatingtoproperty,plantandequipmentareincludedinnon-currentliabilitiesascapitalgrantsandarecreditedtostatementofcomprehensiveincomeonastraight-linebasisovertheexpectedusefullivesoftherelatedassets.

2.13 Revenue recognition

Thecompanyrecognisesrevenuewhentheamountof revenuecanbereliablymeasured, it isprobable that futureeconomicbenefitswillflowtotheentityandspecificcriteriahavebeenmetforeachofthecompany’sactivitiesasdescribedbelow.Theamountofrevenueisnotconsideredtobereliablymeasurableuntilallcontingenciesrelatingtothesalehavebeenresolved.

2.13.1 Grant income

Grantsanddonationsareaccountedforonconfirmationfromthedonor.Grantsreceivedundertherespectiveagreementsarerecognisedatfairvaluewherethereisareasonableassurancethatthegrantwillbereceivedandthecompanywillcomplywithallattachedconditions.

Grantsarerecognisedasincomeovertheperiodsnecessarytomatchthemwiththerelatedcostswhichtheyintendtocompensate,onasystematicbasis.

2.13.2 Sale of services – accreditation fees and training income

Accreditationfeesandtrainingincomearerecognisedintheaccountingperiodinwhichtheservicesarerendered,byreferencetocompletionofthespecifictransactionassessedonthebasisoftheactualserviceprovidedasaproportionofthetotalservicestobeprovided.

2.13.3 Interest income

Interestincomeisrecognisedonatime-proportionbasisusingtheeffectiveinterestmethod.


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3. Financial risk management

3.1 Financial risk factors

Thecompany’sactivitiesexposeittoavarietyoffinancialrisks:marketrisk(includingcurrencyrisk,fairvalueinterestrateriskandotherpricerisk),creditriskandliquidityrisk.Thecompany’soverallriskmanagementprogrammefocusesontheunpredictabilityoffinancialmarketsandseekstominimisepotentialadverseeffectsonthecompany’sfinancialperformance.

RiskmanagementiscarriedoutunderpoliciesapprovedbytheBoardofDirectors.

(I) Market risk

(i) Foreign currency risk Intheordinarycourseofbusiness,thecompanyentersintotransactionsdenominatedinforeigncurrencies.Inaddition

thecompanyhasassets in foreigncurrencieswhichexpose it to foreignexchangeriskarising fromvariouscurrencyexposures,inparticularwithregardtotheUnitedStatesDollarandSouthAfricanRand.Foreignexchangeriskarisesfromfuturecommercialtransactions,recognisedassetsandliabilities.

At31March2015,ifthecurrencyhadweakened/strengthenedby1%againsttheSouthAfricanRandwithallothervariablesheldconstant,post-taxprofitfortheyearwouldhavebeenP1,420(2014:1,395)higher/lower,mainlyasaresultofforeignexchangegains/lossesontranslationofRanddenominatedbankbalances.

At31March2015,ifthecurrencyhadweakened/strengthenedby1%againsttheUnitedStatesDollarwithallothervariablesheldconstant,post-taxprofitfortheyearwouldhavebeenP5,395(2014:P5,620)higher/lower,mainlyasaresultofforeignexchangegains/lossesontranslationofUnitedStatesDollardenominatedbankbalances.

(ii) Cash flow and fair value interest rate risk

Fluctuation in interest rates impacton thevalueof short-termcash investmentandfinancingactivities,givingrise tointerestraterisk.Thecashismanagedtoensuresurplusfundsareinvestedinamannertoachievemaximumreturnswhileminimisingrisk.

Thecompanyanalyses its interestrateexposure.Thecompanycalculatesthe impactonprofitand lossofadefinedinterestrateshift.Foreachsimulation,thesameinterestrateshiftisused.

At31March2015, if interestratesoninterest-bearingassetshadbeen1%higher/lowerwithallothervariablesheldconstant,post-taxprofitfortheyearwouldhavebeenP4,856(2014:P3,775)higher/lower,mainlyasresultofhigher/lowerinterestincomeoninterest-bearingassets.



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3.1 Financial risk factors (continued)

(iii) Other price risk

Thecompanyisnotexposedtootherpriceriskssuchasequitypricerisk,commoditypricerisk,prepaymentrisk,andresidualvaluerisk.

(II) Credit risk

Creditriskismanagedongroupbasis.Creditriskarisesfromcashandcashequivalentanddepositswithbanks.

ThecreditqualityoffinancialassetsisdisclosedinNote19.2.

(III) Liquidity risk

Prudentliquidityriskmanagementimpliesmaintainingsufficientcashandmarketablesecurities,theavailabilityoffundingthroughanadequateamountofcommittedcreditfacilitiesandtheabilitytocloseoutmarketpositions.Duetothedynamicnatureoftheunderlyingbusinesses,managementofthecompanyaimstomaintainflexibilityinfundingbykeepingcommittedcreditlinesavailable.

Thetablebelowanalysesthecompany’sfinancial liabilities intorelevantmaturitygroupingsbasedontheremainingperiodatthe statementof financial position to the contractualmaturity date.The amounts disclosed in the table are the contractualundiscountedcashflows.Balancesduewithin12monthsequaltheircarryingbalancesastheimpactofdiscountingisnotsignificant.

Less than 1 year P31 March 2015 Tradepayables 436,187Otherpayablesandaccruals 1,616,140 2,052,327 31 March 2014 Tradepayables 286,755Otherpayablesandaccruals 1,979,396 2,266,151


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3.2 Fair value estimation Financial instrumentsconsistoftradereceivables,bankandcashbalancesandotherpayablesresultingfromnormalbusinessoperations.Thecarryingvaluelessimpairmentprovisionoftradereceivablesandpayablesareassumedtoapproximatetheirfairvaluesduetotheshort-termnatureoftradereceivables.Thefairvalueoffinancialliabilitiesfordisclosurepurposesisestimatedbydiscountingthefuturecontractualcashflowsatthecurrentmarketinterestratethatisavailabletothecompanyforsimilarfinancialinstruments.

3.3 Capital risk management

Company’sobjectiveswhenmanagingcapital are to safeguard thecompany’sability tocontinueasagoingconcern inorder toprovide returns formembersandbenefitsforotherstakeholdersandtomaintainanoptimalcapitalstructuretoreducethecostofcapital.

Thecompanydoesnotmonitorcapitalonthebasisofthegearingratio.

4. Critical accounting estimates and judgments

ThepreparationoffinancialstatementsinconformitywithInternationalFinancialReportingStandardsThepreparationoffinancialstatementsinconformitywithInternationalFinancialReportingStandardsrequirestheuseofcertaincriticalaccountingestimatesandjudgmentsconcerningthefuture.Estimatesandjudgmentsarecontinuallyevaluatedandarebasedonhistoricalexperienceandotherfactors, includingexpectationsoffutureeventsthatarebelievedtobereasonableunderthecircumstances.Intheprocessofapplyingthecompany’saccountingpolicies,managementhasmadethefollowingestimatesandjudgmentsthathavea

significantriskofcausingmaterialadjustmentstothecarryingamountofassetsandliabilitieswithinnextyear.

(a) Income taxes

ThecompanyissubjecttoincometaxundertheIncomeTaxActinBotswana.Significantjudgmentisrequiredindeterminingtheprovisionforincometaxes.Therearemanytransactionsandcalculationsforwhichtheultimatetaxdeterminationisuncertainduringtheordinarycourseofbusiness.Thecompanyrecognisesliabilitiesforanticipatedtaxissuesbasedonestimatesofwhetheradditionaltaxeswillbedue.Wherethefinaltaxoutcomeofthesemattersisdifferentfromtheamountsthatwereinitiallyrecorded,suchdifferenceswillimpacttheincometaxanddeferredtaxprovisionsintheperiodinwhichsuchdeterminationismade.

(b) Residual value and useful lives of property, plant and equipment

Thecompanydeterminestheestimatedusefullivesandrelateddepreciationchargesforitsplantandequipment.Thisestimateisbasedonprojectionsaboutthecontinuedexistenceofamarketforitsproductsandtheabilityofthecompanytopenetrateasufficientportionofthatmarketinordertooperateprofitably.Thecompanyincreasesthedepreciationchargewheretheusefullivesarelessthanpreviouslyestimated,oritwillappropriatelyimpair,technicallyobsoleteornon-strategicassetsthathavebeenabandonedoridentifiedforsale.

Residualvaluesarebasedoncurrentestimatesofthevalueoftheseassetsattheendoftheirusefullives.

(c) Impairment loss on trade receivables

Thecompanyreviewsitsdebtorstoassessimpairmentonacontinuousbasis.Indeterminingwhetheranimpairmentlossshouldberecordedintheincomestatement,thecompanymakesjudgmentsastowhetherthereisanyobservabledataindicatingthatthereismeasurabledecreaseinestimatedcashflowsfromdebtors.Managementusesestimatesbasedonhistoricallossexperienceofassets.Theassumptionsusedforestimatingtheamountandtimingofcashflowsarereviewedregularlytoreduceanydifferencesbetweenlossestimatesandactuallossexperience.



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5 Income 2015 2014 P P

Transferredfromdeferredincome(Note15) 2,555,195 2,223,216Transferredtocapitalgrants(Note14) (114,448) (22,271)Accreditationapplicationfees 98,702 119,243Assessmentfees 2,438,970 1,371,575Annualaccreditationfees 899,324 829,436 5,877,743 4,521,199

6 Other operating income (net) 2015 2014 P P

Capitalgrantsamortisedduringtheyear(Note14) 69,346 102,164Exchangegain 121,270 60,342Profitondisposalofproperty,plantandequipment 565 -Trainingincome 1,781,412 1,202,277Trainingexpenses (942,206) (704,991) 1,030,387 659,792

7 Operating surplus/ (deficit) 2015 2014 P P

Thefollowingitemshavebeencharged/(credited)inarrivingatoperatingsurplus/(deficit): Auditors’remuneration 85,000 88,664Depreciation 69,346 102,164Operatingleasepayable-property 401,238 364,762Repairsandmaintenance 8,277 -Reversalofimpairmentoftradereceivables - (159,612)Staffcosts 2,983,452 2,344,400

Staff costs comprise: Salaries 2,885,858 2,310,405Stafftraining 97,594 33,995

2,983,452 2,344,400

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8 Finance income 2015 2014 P P

Interestincome-bankdeposits 57,381 39,747

9 Income tax expense 2015 2014 P P Botswanacompanytax -Botswanacompanytaxat22% - - Deferredincometaxcharge(Note12) (4,881) - Taxcreditfortheyear (4,881) - Thetaxonthecompany’sprofitbeforetaxdiffersfromthetheoreticalamountthatwouldariseusingthebasictaxrateasfollows: 2015 2014 P P Profitbeforeincometax 121,270 - Taxcalculatedatataxrateof22% 26,679 - Expensesnotdeductiblefortaxpurposes 568,231 - Incomenotsubjecttotax (599,791) - Taxcreditfortheyear (4,881) -

ThecompanyhassubmittedanapplicationtoGovernmentofBotswanainordertoobtaindiplomaticstatusonthebasisthatthecompanyisaSADCsubsidiarityorganisation.Oncethediplomaticstatusisgranted,thecompanywillbeexemptfromincometaxunderParagraph(iii)ofthePart(I)oftheSecondScheduletotheIncomeTaxAct.ManagementconfirmsthattheSADCASapplicationforDiplomaticImmunitiesandPrivilegesisstillbeingpursuedwiththehostgovernmentofBotswana.OnthebasisofinstructionreceivedfromBotswanaUnifiedRevenueService(BURS),SADCAShasregisteredforincometax,VATandPAYEwitheffectfrom1June2014.Directorsbelievethatthecompanywillnotbeliableforincometax,VATorPAYEfortheperiodpriortoregistration.


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10 Property, plant and equipment Computer Fixtures Office Total equipment and fittings equipment P P P P

At 1 April 2013 Cost 520,656 306,245 102,994 929,895 Accumulateddepreciation (454,322) (130,362) (56,007) (640,691) Net book amount 66,334 175,883 46,987 289,204

Year ended 31 March 2014 Openingnetbookamount 66,334 175,883 46,987 289,204 Additions 9,805 12,466 - 22,271 Depreciation (56,048) (30,667) (15,449) (102,164) Closing net book amount 20,091 157,682 31,538 209,311 At 31 March 2014 Cost 530,461 318,711 102,994 952,166 Accumulateddepreciation (510,370) (161,029) (71,456) (742,855) Net book amount 20,091 157,682 31,538 209,311

Year ended 31 March 2015 Openingnetbookamount 20,091 157,682 31,538 209,311 Additions 78,456 32,272 3,720 114,448 Disposals (43,827) - (3,296) (47,123) Depreciationondisposals 43,827 - 3,296 47,123 Depreciation (20,411) (33,247) (15,688) (69,346) Closing net book amount 78,136 156,707 19,570 254,413 At 31 March 2015 Cost 565,090 350,983 103,418 1,019,491 Accumulateddepreciation (486,954) (194,276) (83,848) (765,078 Net book amount 78,136 156,707 19,570 254,413


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11 Trade and other receivables 2015 2014 P P

TradeReceivables 305,920 422,081Otherreceivables 5,738 1,376Deposits 24,311 24,311Prepayments 32,574 15,784

368,543 463,552 Thecarryingamountsofreceivablesapproximatetheirfairvaluesduetotheirshort-termnature. Asof31March2015,tradereceivablesofP305,920(2014:P422,081)werefullyperforming. Asof31March2015,tradereceivablesdoesnotcontainpastdueorimpairedassets.

Tradereceivablesincludethefollowingamountdenominatedinforeigncurrencies: 2015 2014 P P USDollars 132,614 137,509

Movementsonthecompanyprovisionforimpairmentoftradereceivablesareasfollows: 2015 2014 P P

At1April - 159,612Reversalofimpairmentoftradereceivables - (159,612)

At31March -- Thecreationofprovisionforimpairedreceivableshavebeenincludedin‘operatingsurplus/(deficit)’intheincomestatement(Note7).Amountschargedtotheallowanceaccountaregenerallywrittenoff,whenthereisnoexpectationofrecoveringadditionalcash. Theotherclasseswithinotherreceivablesdonotcontainimpairedassets. ThemaximumexposuretocreditriskatthereportingdateisthecarryingvalueofeachclassofreceivablementionedaboveandisfurtheranalysedinNote19.Thecompanydoesnotholdanycollateralassecurity.

12 Deferred income tax asset

Deferredincometaxesarecalculatedonalltemporarytimingdifferencesundertheliabilitymethodusingaprincipaltaxrateof22%(2014:0%).



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12 Deferred income tax asset (continued) 2015 2014 P P

Deferredtaxliabilitiesareattributabletothefollowing: Acceleratedcapitalallowances 4,881 - Themovementofthedeferredtaxaccountisasfollows: Atbeginningofyear - -Chargedtoincomestatement(Note9) 4,881 - Atendofyear 4,881 -

13 Cash and cash equivalents 2015 2014 P P

Bankbalances 2,357,651 3,420,858Cashonhand 233 1,049 2,357,884 3,421,907 Forthepurposesofthecashflowstatement,thecashandcashequivalentscomprisethefollowing:

2015 2014 P P

Cashandbankbalances 2,357,884 3,421,907 Thecompany’scashandcashequivalentsincludetheamountsdenominatedinfollowingforeigncurrencies:

2015 2014 P P

USDollars 405,125 425,172

14 Capital grants 2015 2014 P P

At1April 209,312 289,205Capitalgrantstransfered(Note5) 114,448 22,271Capitalgrantsamortisedduringtheyear(Note6) (69,346) (102,164)At31March 254,414 209,312


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15 Deferred income 2015 2014 P P

At1April 2,093,425 -Grantincomereceived 1,488,717 4,316,641Transferredtoincomestatement(Note5) (2,555,195) (2,223,216)At31March 1,026,947 2,093,425

16 Trade and other payables 2015 2014 P P

Tradepayables 436,187 286,755Otherpayables 406,312 740,281Refundabledeposits 996,295 971,537Accruedexpenses 213,533 267,578 2,052,327 2,266,151 Thecompany’stradeandotherpayablesaredenominatedinfollowingforeigncurrencies:

2015 2014 P P

USDollars 142,077 460,757SouthAfricanRands 143,720 139,464 285,797 600,221

17 Cash (used in) / generated from operations 2015 2014 P P

Operatingsurplus/(deficit) 63,889 (4,457)Adjustmentsfor : -Transferfromdeferredincome(Note5) (2,555,195) (2,223,216)-Capitalgrantsamortisedduringtheyear(Note6) (69,346) (102,164)-Depreciationonproperty,plantandequipment(Note10) 69,346 102,164-Profitondisposalofproperty,plantandequipment (565) - (2,491,871) (2,227,673)Changesinworkingcapital: -Tradeandotherreceivables 95,009 (189,883)-Deferredincome 1,488,717 4,316,641-Tradeandotherpayables (213,824) 554,596 Cash (used in) / generated from operations (1,121,969) 2,453,681



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18 Contingent liabilities Therewerenocontingentliabilitiesasatthefinancialpositiondate.

19 Analysis of financial instruments 2015 2014 P P 19.1 Financial instruments by category Loans and receivables

Tradeandotherreceivablesexcludingprepayments 335,969 447,768Cashandcashequivalents 2,357,884 3,421,907 2,693,853 3,869,675

Financial liabilities at amortised cost Tradeandotherpayables 2,052,327 2,266,151

19.2 Credit quality of financial assets Thecreditqualityoffinancialassetsthatareneitherpastduenorimpairedcanbeassessedbyreferencetoexternalcreditratings(ifavailable)ortohistoricalinformationaboutcounterpartydefaultrates; 2015 2014

P P

Trade receivables Group1 305,920 422,081 Otherreceivablesexcludingprepayments Notrated 30,049 25,687

Key: Group1–existingcustomers(morethan6months)withnodefaultsinthepast.

2015 2014 P P

Cash at bank and short-term bank deposits FirstNationalBankofBotswanaLimited 2,357,651 3,420,858 Credit risk consistsmainly of cash deposits, cash equivalents, trade receivables andother receivables.The companymaintains deposits andbalancesonlywithmajorbankswithhighcreditstandingandlimitsexposuretoanycounter-party.ThecompanyhasdepositswithFirstNationalBankofBotswanaLimited.TherearenocreditratingsavailableinBotswana.FirstNationalBankofBotswanaislistedonBotswanaStockExchangeandisasubsidiaryofFirstRandLimitedGroupofSouthAfrica,whichislistedintheJohannesburgStockExchange.Noneofthefinancialassetsthatarefullyperforminghasbeenrenegotiatedduringtheyear.


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20 Liability of the members ThecompanyisregisteredasacompanylimitedbyguaranteeandthereforethemaximumliabilityofthemembersislimitedtoP200(TwoHundredPula)permember.

21 Expenses by nature 2015 2014 P P

Accreditationexpenses 1,780,741 1,235,682Advertising,brandingandmarketing 117,175 125,902Auditors’remuneration 85,000 88,664Consultingandtwinningfees 209,471 161,762Depreciation(Note10) 69,346 102,164Governance 275,415 231,550Internationalparticipation 135,132 123,178NAFPcosts - 4,766Otherexpenses 374,589 278,676Postage,printingandstationery 114,792 70,664Reversalofimpairmentoftradereceivables - (159,612)Rent 401,238 364,762Staffcosts(Note7) 2,983,452 2,344,400Telephone,faxandinternet 102,733 90,051Trainingexpenses 942,206 704,991Travelandsubsistenceexpenses 195,157 122,839 7,786,447 5,890,439

22 Commitments (a) Capital commitments

Therewerenocapitalcommitmentsattheendoftheyear.

(b) Operating lease commitments - where the company is the lessee Thecompanyrentsofficespaceundercancellableoperatingsubleaseagreements.Rentisrenegotiatedonanannualbasis.TheleaseexpenditurechargedtotheincomestatementduringtheyearisdisclosedinNote7. Thefutureminimumleasepaymentspayableundercancellableoperatingleasesareasfollows;

2015 2014 P P

Nolaterthan1year 441,364 401,238

23 Events after the reporting period Therewerenoeventsthatoccurredafterthereportingperiodwhichrequireadjustmentstoordisclosureinthefinancialstatements.



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2015 2014 P P Income

Accreditationapplicationfees 98,702 119,243Assessmentfees 2,438,970 1,371,575Annualaccreditationfees 899,324 829,436Transferredfromdeferredincome 2,555,195 2,223,216Transferredtocapitalgrants (114,448) (22,271) 5,877,743 4,521,199

Direct expenses Accreditationexpenses 1,780,741 1,235,682 4,097,002 3,285,517

Other operating income - net Capitalgrantsamortisedduringtheyear 69,346 102,164Exchangegain 121,270 60,342Profitondisposalofproperty,plantandequipment 565 -Trainingincome 1,781,412 1,202,277Trainingexpenses (942,206) (704,991) 1,030,387 659,792

Administrative expenses Accountingfee 5,069 3,541Advertising,brandingandmarketing 117,175 125,902Auditors’remuneration 85,000 88,664Bankcharges 34,820 38,390Cleaning 13,775 12,714Computerexpenses 12,096 18,816Consultingandtwinningfees 209,471 161,762Depreciation 69,346 102,164Entertainment 11,405 10,368Generalexpenses 37,979 30,544Governance 275,415 231,550Insurance 66,607 63,799Internationalparticipation 135,132 123,178NAFPcosts - 4,766Networksupport 78,329 71,509Penalties 3,714 -Postage,printingandstationery 114,792 70,664Reversalofimpairmentoftradereceivables - (159,612)Rent 401,238 364,762Repairsandmaintenance 8,277 -Secretarialservices 9,024 6,988Staffcosts 2,885,858 2,310,405Stafftraining 97,594 33,995Telephone,faxandinternet 102,733 90,051Translationofpoliciesandprocedures 73,334 -Travelandsubsistenceexpenses 195,157 122,839Websitemaintenance 20,160 18,032Withholdingtaxoninterest - 3,975 5,063,500 3,949,766 Operating surplus/ (deficit) 63,889 (4,457) This detailed income statement does not form part of the audited financial statements covered by the audit opinion on page 37.

Annexure 1- Detailed Income Statementfor the year ended 31 March 2015

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Plot506761stFloorBlockFairgroundsOfficeParkPrivateBag00320Gaborone,BotswanaTel:+2673132910Mobile:+2673132922Email:[email protected] Website:www.sadcas.org

ANNUAL REPORT - SADCAS Southern African ... FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2015 35...

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