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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
6
4
3
2
1
0
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Moz
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Nam
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Seyc
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Swaz
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Tanz
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Zam
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Zim
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e
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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
1 1
44
33
01
88
77
99
11 11
13
10
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36
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6
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13
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12
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11
11
30
10
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20
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15
7
7
105
6
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43
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Ang
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Min
ing
Med
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ronm
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Zam
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2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15
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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
21
0
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0
10
20
30
40
50
60
70
80
90
100
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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
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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.
SOUTHERN AFRICAN DEVELOPMENT COMMUNITY ACCREDITATION SERVICE
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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 |
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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
SOUTHERN AFRICAN DEVELOPMENT COMMUNITY ACCREDITATION SERVICE
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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.
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FirstISO/IEC17020courseheldinBotswana
ParticiapntsAttendingtheISO/IEC17025inBotswanaOctober2014 DiscussionsduringtheISO/IEC17025courseinSwaziland
Training and ServicesTraining courses held during the period
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SecondRunner-upsNAFP’sDRCMrsApaulineMatataFezaandMrVikiMbuyaKanama
AwardwinnersMrsSybilDlaminiandPhindileDlamini(NAFP’sSwaziland)SADCASTrainsMoreAssessors
FirstRunner-upMrEdwardMmatliNAFP-BotswanareceivinghiscertificatefromMrsChristineGadzikwaandMrStevenSidney
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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
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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
Report Of The Human Resources And Remuneration Committee
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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
Report Of The Human Resources And Remuneration Committee
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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
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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
SOUTHERN AFRICAN DEVELOPMENT COMMUNITY ACCREDITATION SERVICE
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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
ANNUAL REPORT |
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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
SOUTHERN AFRICAN DEVELOPMENT COMMUNITY ACCREDITATION SERVICE
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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
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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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Notes To The Financial Statementsfor the year ended 31 March 2015
(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).
Notes To The Financial Statementsfor the year ended 31 March 2015
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Notes To The Financial Statementsfor the year ended 31 March 2015
(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).
Notes To The Financial Statementsfor the year ended 31 March 2015
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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.
Notes To The Financial Statementsfor the year ended 31 March 2015
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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.
Notes To The Financial Statementsfor the year ended 31 March 2015
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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.
Notes To The Financial Statementsfor the year ended 31 March 2015
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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.
Notes To The Financial Statementsfor the year ended 31 March 2015
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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.
Notes To The Financial Statementsfor the year ended 31 March 2015
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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.
Notes To The Financial Statementsfor the year ended 31 March 2015
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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.
Notes To The Financial Statementsfor the year ended 31 March 2015
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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
Notes To The Financial Statementsfor the year ended 31 March 2015
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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.
Notes To The Financial Statementsfor the year ended 31 March 2015
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Notes To The Financial Statementsfor the year ended 31 March 2015
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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Notes To The Financial Statementsfor the year ended 31 March 2015
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
Notes To The Financial Statementsfor the year ended 31 March 2015
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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%).
Notes To The Financial Statementsfor the year ended 31 March 2015
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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
Notes To The Financial Statementsfor the year ended 31 March 2015
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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
Notes To The Financial Statementsfor the year ended 31 March 2015
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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.
Notes To The Financial Statementsfor the year ended 31 March 2015
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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.
Notes To The Financial Statementsfor the year ended 31 March 2015
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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
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