FINANCIAL REPORT TO CONGRESS 2009 INTRODUCTION: 2008 – 2009 Financial year was faced with many challenges.
- Hyperinflation causing the devaluation of the Zimbabwean dollar.
- 10 Zero’s dropped in August 2008. Thereafter a further 12 zero’s dropped at the beginning of 2009.
- Unions accounts were recorded in Zimbabwean dollars until 31 October 2008.
- Values were then converted at a mid rate to the USD at a fair rate determined by the going rate.
- From 01 November 2008 all transactions were recorded in USD. Euro balances were converted at a rate of Euro 1 : USD 1.3 at 31 March 2009.
Turning to the balance sheet on page 8 the following:Fixed assets have been revalued at a fair market value which has been approved by the Audit and Financial Committee.Investment in the property owning company of Agriculture House was once again approved by the Audit and Financial Committee. Stock was held in the form of fuel. ACCOUNTS RECEIVABLE. Here the biggest amount was for fertilizer administration fee. However of this amount the Union has provided for an amount of 69 800 for bad debt. Money continues to be collected since 01 April. Currently there is approximately 150 000 outstanding. Cash resources are mainly those in relation to the Stabex 95 Capacity Building program as well as bank and cash balances as at 31 March 2009. Revaluation Reserve has arisen from the fixed assets of 42 590 and the investment in Agriculture House of 240 102. PROJECT FUNDS This is the Capacity Building program under Stabex 95 received from the European Union. In short, this is money to capacitate the Union and its membership. Accounts payable on page 13 item Trade relates to utility bills. Turning to page 9 Cash flow statement the increase in cash resources has been mainly from the Capacity Building program, fertilizer administration and licence fees. President, ladies and gentlemen We now turn to page 7 – Income Statement for the year ended 31 March 2009 Need to point out that levies were only received from NADF. The other Commodities are either dormant, extinct or just operating. Donations mainly from Agri SA, French Embassy Coffee. Coffee assets incorporated into the Union. Grants relate to the Union Project Trust Conservation. PROJECT FUNDSActual cash drawn in terms of project to cover running expenses of the Union. Finally, turn to page 17. Detailed Expenditure statement. Delegates will note the biggest expenses are those of salaries, staff costs, legal, presidential and Vice Presidents travel and the provision for doubtful debt.
(Hendrik Olivier)03 August 2009