ANNUAL REPORT & FINANCIAL STATEMENTS FOR THE YEAR … · 2019-02-19 · acumen saings and credit...

ANNUAL REPORT &FINANCIAL STATEMENTS

FOR THE YEAR ENDED31ST DECEMBER 2018

CS/11671

Together we prosper

VISION

To be the financial services partner of choice for our members

MISSION

To empower our members’ economically through savings mobilization, provision of affordable, innovative and accessible financial services

CORE VALUES

1. Customer focus2. Integrity3. Professionalism4. Transparency and accountability5. Teamwork

ACUMEN SAVINGS AND CREDIT CO-OPERATIVE SOCIETY

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DEC 2018 3

TABLE OF CONTENTS

PROGRAM 4

NOTICE OF AGM 2019 5

BOARD, SUPERVISORY, STAFF MEMBERS 6

MINUTES OF AGM 2018 8

CHAIRMAN’S REPORT 18

SUPERVISORY COMMITTEE’S REPORT 24

ANNUAL & FINANCIAL REPORT 26

SOCIETY INFORMATION 27

STATEMENT OF MANAGEMENT COMMITTEE RESPONSIBILITIES 28

STATISTICAL INFORMATION 29

STATEMENT OF COMPREHENSIVE INCOME 31

STATEMENT OF FINANCIAL POSITION 32

STATEMENT OF CHANGES IN EQUITY 33

STATEMENT OF CASHFLOW 34

NOTES TO THE ACCOUNTS 36

REPORT OF INDEPENDENT AUDITOR 42

PROPERTY PLANT AND EQUIPMENT SCHEDULE 43

BUDGET 2019/20 44

PROPOSED RESOLUTIONS FOR 2019 47


ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DEC 20184

PROGRAM FOR THE 12TH ANNUAL GENERAL MEETING OF 02/02/2019

VENUE: PCEA CHURCH HALL, ONG’ATA RONGAI

08.30am-09.00am : Arrival/Registration.

09.00am-09.15am : Opening Prayer & Brief Introduction of Members

Guests and Other Highlights.

09.15am-09.30am : Reading and Confirmation of Previous Meeting Minutes.

09.30am-9.45am : Matters Arising from the Minutes.

9.45am-10.00am : Chairman’s Report.

10.00am-10.15am : Supervisory Committee’s Report.

10.15am-10.45am : Invited Guests.

10.45am-11.15am : Presentation of Audited Accounts & Balance Sheet 2018.

11.15am-11.45am : Consideration and Approval of 2019/2020 Budget.

11.45am-12.30pm : Resolutions.

12.30pm-12.40pm : Presentation of Gifts.

12.40pm-12.50pm : Elections

12.50pm-01.05pm : A.O.B

01.05pm : Closing prayer and departure thereafter



18/01/2019

TO ALL MEMBERS,

NOTICE OF ANNUAL GENERAL MEETING (AGM)

Notice is hereby given that the 12th Annual General Meeting of members ONLY will take place on 02/02/2019 at PCEA Ong’ata Rongai Church Hall along Church Road off Magadi Road starting at 8.00am to transact the following business:-

1. Reading and confirmation of the minutes of the Annual General Meeting held on 03/02/2018.

2. Chairman’s report.3. Supervisory committee report.4. Consideration and adoption of audited accounts for the year ended 31st December, 2018.5. Consideration and approval the 2019/2020 Budget.6. Determination of the maximum borrowing power of the co-operative society.7. Appointment of auditors for the ensuing year.8. Elections.9. Resolutions. 10. A.O.B

This is in compliance with section 27 subsection 5 of the Cooperative Society Act No12 of 1997, amended in 2004.

Yours faithfully,ACUMEN SACCO LTD.

JOSEPH N KIMANIHON. SECRETARY.

CC. Sub-County Co-operative Officer - Kajiado North.



BOARD MEMBERS

Julius NgamateBoard Member

Josphat KinaiyaBoard Member

Jane NjorogeBoard Member

Chris Githinji RwengoBoard Member

Rahab MugoBoard Member

Saropa KimenjoTreasurer

Joseph KimaniSecretary

Wainainah KiganyaChairman

Pauline KambaVice Chairperson



Bii C. HillaryAccountant

Moses MathuGeneral Manager

Celestine RuttoLoans Officer

Maureen KimemiaMarketing Officer

Josephine NjambiAsst Loans Officer

Francisca KalekyeOffice assistant

Kate Kagwira Stephen Secretary

Ernest KiraguChairman

Stephen BweyaMember

SUPERVISORY COMMITTEE

MANAGEMENT TEAM

Rosalia WanjikuTeller



MINUTES OF THE 11TH ANNUAL GENERAL MEETING HELD ON 3RD FEBRUARY, 2018, AT THE ONGATA RONGAI PCEA CHURCH HALL.

BOARD MEMBERS PRESENT1. Wainainah Kiganya - Chairman2. Pauline Kamba - Vice Chairperson3. Joseph Kimani - Hon Secretary4. Saropa Kimenjo - Treasurer5. Julius Ngamate - Emeritus Chairman6. Jane G. Njoroge - Committee member7. Rahab M. Mugo - Committee member 8. Josphat Kinaya - Committee member9. Leonard Kamau - Committee member

SUPERVISORY COMMITTEE PRESENT1. Stephen Katie - Secretary2. Stephen Bweya - Member

SACCO STAFF1. Moses N. Mathu - General Manager2. Bii Hillary - Accountant3. Celestine C. Rutto - Loans officer4. Maureen Kimemia - Marketing officer5. Rosalia W. Wanjiku - Teller6. Josephine Njambi - Assistant Loans officer7. Francisca Kalekye - Office assistant

MEMBERS PRESENT1. Acumen Housing Co-op Society 2. Agnes Wanjeri Kariema 3. Agnes Watati Kabui 4. Albert Bundi Gituaki 5. Alice Wanjiku Ngugi 6. Anastasia Lucy Njeri Ngungu 7. Ann Soila Mwae 8. Ann Waithira Wambui 9. Ann Wambui Gatheru 10. Anthony Wanyonyi Bunyola 11. Antony Kimani Wambugu 12. Balcone Investment Self Help Group 13. Benard Kipkirui Bii 14. Benard Kipkirui Cheruiyot 15. Benson Kariuki Muguku 16. Benson Kimani Kamau 17. Benson Muya Muiruri 18. Benson Thumbi Ngunjiri 19. Caroline Awour Obwanda

20. Caroline Muthoni Njoroge 21. Catherine Wacera Maina 22. Catherine Wachera & James Muchiri 23. Celestine Cherono Rutto 24. Charles O. Moteiri 25. Charles Mugo Mwaura 26. Charles Ndegwa 27. Charles Njoroge Gathama 28. Charles Nyatuka Ogechi 29. Chillion Omondi Odhiambo 30. Chris Githinji Rwengo 31. Claire Gatheru 32. Consolata Kagendo Nyaga 33. Diana Nafula Kundu34. Danson Ngundo Manajri35. David Amuli Ayanga 36. David Gakuru Gichoki 37. David Kamuyu 38. David Katei Tipanko



39. David Lemayian 40. David Makumi Thande 41. David Wambugu Jack 42. David Weru 43. Denis Okongo Obara 44. Digital 11 Self Hel Group 45. Dorcas Nyawira Gitonga 46. Elizabeth Wanjiru Munene 47. Emmy Jepkemboi 48. Enock Kipkorir Talaam 49. Erick Mwangi Njuri 50. Erick Ng’ang’a Kienjeku 51. Eserian Womens Guild Project 52. Esther Muthoni Gikera 53. Esther Muthoni Mungai 54. Esther Njoki Kinyanjui 55. Esther Wangari Gichuru 56. Esther Wangui Gikonyo 57. Evelyn Mutheu Mwalimu 58. Faith Nyaguthi Wanjiku 59. Florence Kavilo Kioko 60. Florence Muloo Gakuna 61. Florence Njoki Kamami 62. Florence Njoki Nduati 63. Francis Kabiruri Macharia 64. Francis Kinyanjui Gathogo 65. Francis Muhande Gathogo 66. Francis Muhande Muruli 67. Francis Mwangi Njuki 68. Frank Gachau Gichonge 69. Fransisca Kalekye Mutune 70. Frida Njoki Mohoro 71. Geofffrey Macharia Maina 72. Geoffrey Kyalo Mutiso 73. George Gicharu Njuguna 74. George Mulindi Lumumba 75. Gideon Mwaura Muchene 76. Grace Melonyie Nakeel77. Grace Ndungwa Musengya 78. Grace Sanaiyan Katei79. Grace Wangari 80. Grace Waniu Karathe 81. Grace Wanjiku Muigai 82. Grace Wanjiru 83. Grace Wanjiru Kinaiya 84. Grace Wanjiru Njunge 85. Habiyaremyee Felicien

86. Haffen Onyango Matena 87. Hannigtone Maghanga Shambi 88. Harriet Kaari Rithaa 89. Harriet Waithira Muiruri 90. Harrisson Kamau Mwangi 91. Hellen Njeri 92. Hellen Njeri Kinuthia 93. Henzron Kamau Njoroge 94. Hillary Cheruiyot Bii 95. Humphrey Musebe Nganda 96. Irene Makhanu Nasimiyu 97. Isaac Mugo Mwangi Maina 98. Isaya Shibonekha Shimwati 99. Jackson Kirina Ndungu 100. Jairus Ayieko Adedi 101. James Kangethe Macharia 102. James Muchiri Macharia 103. James Mwangi Nduati 104. James Njoroge Kinyanjui 105. James Obudgo 106. James Wachira Munene 107. Jane G. Njoroge 108. Jane Mumbi Kamau 109. Jane Njoki 110. Jane Wanjiru Njoroge 111. Janet Wambere Muriithi112. Janson Miyogo Nyaribo 113. Japheth Makori Ondieki 114. Jennifer Njeri Mugo 115. Joh Kihara Maina 116. Johana Mucheru Gachoka 117. John Kiguru Machariah 118. John Mark Leshao 119. John Muchai Muhinja 120. John Mwaura Gicharu 121. John Omondi Odhiambo 122. Jokima Ventures 123. Joseph M. Kamenju 124. Joseph Kimanzi Mwema 125. Joseph Mukuria Kariuki 126. Joseph Mundia Waweru 127. Joseph N. Kimani 128. Josephine Muthoni 129. Joshua Nakeel 130. Josphat Kinaiya Saningo131. Josphat Kinyua Mundia 132. Josphat Mundia Kamotho



133. Joyce Munjiru Ndiangui 134. Joyce Wangari Ndegwa 135. Judy Wairimu Muguku 136. Julius Noroge Ngamate 137. Justus Erustus Odondi 138. Katie Kagwiria Stephen 139. Kenedy Saningo Kinaiyia 140. Kenneth Kariika Murani 141. Kevin Mtange Shaban 142. Kinithua Josphine Njambi 143. Lawrence Murithi Kirimi 144. Leah Jepchumba Cheruiyot 145. Leah Wangechi Gitonga146. Leornard N. Ragae 147. Leornard Kamau148. Lilian Wanjiru Koinange 149. Loise Wanjiku Kamau 150. Loyce Wanjiku Leshao 151. Lucy Doris Wanjiku Mwangi 152. Lucy Mukwanjeru Gitonga 153. Lucy Njeri Karangu 154. Lucy Njeri Mwaura 155. Lucy Wanjiku Ngaruiya 156. Lucy Wanjiku Wachuka 157. Lydiah Wanja Mbugua 158. Lynder Achieng Magai 159. Macharia Anthony Mwangi 160. Magdaline Waniku Karwigi 161. Margaret Mwanza Mwasia 162. Margaret Wandera Anyango 163. Margaret Wanjeri Mirara 164. Marion Waithira Githinji 165. Marjory Wangui Njoroge 166. Mark Osiche Ouma 167. Martin Chege Mutahi 168. Martin Kanyari Githenya 169. Martin Mwangi Njoroge 170. Mary Moi Njoroge 171. Mary Naisenya Kabare 172. Mary Wanjiru Muraguri 173. Maureen Katelyne Kayonzo 174. Mbolozi Makau 175. Mercy Wanjiru Mwangi 176. Michael Karuga 177. Milka Njeri Njoroge 178. Miriam Njeri Kienjeku 179. Miriam Silantoi Suakei

180. Moses Ndarwa Mathu 181. Martin Muriithi Kamau 182. Mwanasit Hamisi Kutunga 183. Nancy Talash Toipan 184. Nicholas Kariuki Gatonye 185. Njagi Allan Mawira 186. Njogu James Gachamio 187. Onyango Henzron B. Ouko 188. Ouya James Nyairo 189. Partet Newon Kinaiya 190. Patrick Kariuki Njogu 191. Patrick Solitei Sampaen 192. Pauline Kavinya Kamba 193. Penina Mugito Muriuki 194. Peninah Wambui Gikera 195. Peninah Wanjuihi Kabiru 196. Peter Kimana Gicharu 197. Peter Kyengo Sila 198. Peter Muithya Kalii 199. Peter Mwangi Waithira 200. Rachael Njeri Danson 201. Rahab Mbaire Mugo 202. Rhoda Mukolwe 203. Risper Moraa Ondarii 204. Rodgers Kiptoo Chelego 205. Rolah Njeri Gathuri 206. Ronwest Self Help Group 207. Rosalia W. Wanjiku 208. Rosemary Aoko Ng’ong’a 209. Rosemary Wanjiku Gutahi 210. Rugai Paul Njoroge 211. Salome Wambui Kinuthia 212. Samson Ndambuki Muguti 213. Samuel Rinui Kaiyai 214. Samuel Nganga Muiruri 215. Samuel Pere Mwai 216. Saropa Kimenjo 217. Serah Wambui Gicharu 218. Simon Maina Waituika 219. Simon Mburu Kamau 220. Simon Mwai 221. Simon Wambiri 222. Soweto Junction Self Help Group 223. Soweto Neighbour Self Help Group 224. Splendour Friendshi Enterprises 225. Stanely Nduchi Nyagithii226. Stanely Waweru Ngigi



227. Stephen K. Kiragu 228. Stephen Kimani Mwangi 229. Stephen Lucy Joseph230. Stephen Mbugua Muthandi 231. Stephen Mirara Muhoro 232. Stephen Muiru Muhia 233. Stephen W. Maina 234. Stephen Waweru Kimani 235. Stephenie Bweya 236. Susan Warima Gitahi 237. Teresia Lasoi 238. Thadeus Mutari Amwata 239. Thomas Kaleku Ikayo 240. Veronicah Nyaboke Bosire 241. Victor Mahasi Masiza242. Victor Nyikang’o Simwa 243. Victor Wanjala Khaemba 244. Vincent Kabiba Nyamonyo 245. Vincent Obeto Momanyi 246. Virgina Wanjiru Gourlay

247. Wainaina Kiganya 248. Wanjala Huxley Calystus 249. Wellington Mugo 250. Wilfred Otundo Amwata 251. William Kamau Njoroge 252. Winfred Mwikali Kilonzo253. Zacharia Omai Orina 254. Zakayo Mutuma

APOLOGIES1. Beatrice Wairima Kinaiya2. Dickson Mugo Mwangi3. Elizabeth Naisenya Kenaiya 4. Ernest Kiragu Mugo5. Jane Wakaba6. Peter Mbuthia Muhoro 7. Simon David Muturi Mirara8. Teresia Wanjiku Muhoro 9. Virginiah Wanjiku Ngahu10. Winnie Karugu

IN ATTENDANCE 1. Mrs.Hellen Nkooiya - Assistant County commissioner2. Mr. Kennedy Gitau - Senior Chief Nkaimurunya Ward3. Hon. Kennedy Waishunguru - Nkaimurunya Ward MCA4. Mrs. Jane Karanja - County Commissioner of Cooperatives.5. Mr. Frankison Maina - Sub-County Cooperative Officer6. Ms. Salome Wangui - Sub-County Cooperative Officer7. Mrs. Rispah Maundu - Auditor, Kajiado County Department of Co-operatives.8. Mr. Vasco Kolwe - Branch Manager, Co-op Bank Rongai9. Ms. Carol Mburu - CCIA Ltd.10. Ms. Maureen Gichaba - CIC Group Ltd.

The meeting was called to order at 9.20am followed with a prayer from Mrs. Rahab Mugo. The Chairman introduced the Board & Supervisory Committee members present at the meeting. The meeting was informed of the demise of the Eng. Peter Wamburu Muthee which occurred in December 2017. A moment of silence was observed in his honour. Members present also did self-introductions.

AGENDA

The AGM notice and the agenda were read:-1. Reading and confirmation of previous meeting minutes held on 06/02/2017.2. Chairman’s report.3. Supervisory Committee’s report.4. Consideration and adoption of the audited accounts for the year ended 31st December 2017.



5. Consideration and approval of year 2018/2019 budget.6. Determine the maximum borrowing powers of the co-operative society.7. Appointment of auditors for the ensuing year.8. Elections.9. Resolutions. 10. A.O.B

The notice of the meeting was read by the Hon Secretary.Proposer: Frank Gachau, M/No. 0351Seconder: George Gicharu Njuguna, M/No. 0509

MIN/01/2018 READING AND CONFIRMATION OF MINUTES OF THE PREVIOUS MEETING

The minutes of the previous AGM were read by the Hon Secretary and confirmed as a true record of the day’s deliberations.Proposer: Mrs. Fridah Muhoro, M/No. 0154Seconder: Mrs. Grace Kinaiya, M/No. 0696

MIN/02/2018 MATTERS ARISING

1. Attendance list: The list of attendants of the last AGM was amended to include Rachael Njeri Danson and Grace Muigai who had been omitted yet they were present. Spelling corrections were made for Caroline Awour Obwanda, George Githeru Kamuyu and Virginia Wanjiru Gourlay.

2. Clarification: Anthony Wanyonyi (M/No. 0579) requested clarification on the status of the Chase Bank loan and the Fosa licence application. He was advised that the two issues would be dealt with extensively in the chairman’s report.

3. Proposers & seconders: David Weru (M/No. 0320) sought to know who can propose and second minutes. He was informed that any member present at the previous meeting can propose or second minutes.

MIN/03/2018 CHAIRMANS REPORT

The following were the highlights of the Chairman’s report at the 11th AGM:1. Accolades: the Society had been recognised as the 2nd best managed cooperative in Kajiado

North during the 2017 Ushirika Day.2. 10 years anniversary: Members were informed that the Society was celebrating 10 years since

inception and thanked members and other stakeholders for their unwavering support to the Society since March 2008.

3. Operating environment: The chairman noted the difficult operating environment witnessed in 2017. A charged political environment culminating in repeat elections slowed down economic progress in the country to near standstill. Curtailed lending by commercial banks as result of capping lending rates also slowed down the rate of growth of the economy. The Society witnessed a significant drop in volumes and value of loan uptake. Positive economic growth rates had been projected in 2018 by the CBK, hence a whim of optimism in the market.

4. Financial performance: Positive growth was witnessed in all indicators in 2017. Registered members grew by 23%, share capital grew by 7%, member deposits grew by 14%, the loan book grew by 19% and turnover (total income) grew by 11%. Loans disbursed in fell by 11%.



Outstanding debt by the Society stood at nil at the close of the year (refer to 2018 AGM booklet for further clarifications).

5. Technology: The chairman noted the steps made by the Society in technology aimed at improving member experience and running the Society efficiently. Automatic SMS service is operational. The Society had made progress in its quest to establish a mobile banking service.

6. Fosa: Members were informed that the Society was still in consultation with Sasra over the pending Fosa licence application. Minimum capital ratios had been met and members were urged to be patient on the Fosa licence.

7. Partnerships: The chairman noted the continued mutually beneficial partnerships between the Society and Acumen Housing Cooperative Ltd, CIC Group Ltd, Equity Bank and Cooperative Bank, among others

8. Election: Three board members - Joseph N. Kimani, Jane G. Njoroge and Leonard Kamau – are set to retire but are eligible for re-election, apart from Mr Kamau who wished to exit. Members were also to replace the former Supervisory Committee chairman, the late Eng Peter W. Muthee.

In conclusion, the chairman requested all members present to recruit at least one new member each in 2018. The report was adopted for discussion.Proposer: David MachariaSeconder: David Weru (M/No 0320)

Reactions to the chairman’s speech1. Membership: Mr. Christopher Rwengo (M/No. 0561), sought clarification on when one is considered a member of the society. He was informed that one becomes a member after filling requisite membership application forms, paying the registration fee and paying the minimum share capital.

2. Merger: Rachael Njeri Danson (M/No. 0036) wanted to know the possibility of merging Acumen Sacco and Acumen Housing Cooperative. The chairman noted that several legal and financial challenges would have to be looked at to establish the viability of such an endeavour. The ultimate decision lays with members of each society.

3. Fosa: Mr Francis Njuki (M/No. 0072) raised a query on whether it was viable to continue pursuing the Fosa licence which has been outstanding since 2012. He asked the board to consider terminating the exercise and concentrate on the growing the back office business. The member’s concern was noted with a plea for more patience on the Fosa licence, since the Society had made significant investments in the pursuit.

4. Mobile banking: Mr Mateere of Balcone SHG, corporate member number 0442, sought to know the possible timeline for launching the mobile banking service. He was informed that possibly before the close of the year but of key concern will be security of the service.

MIN/04/2018: ADDRESS BY THE ASSISTANT COUNTY COMMISIONER The Assistant County Commissioner thanked the board for inviting her to the 11th AGM of the Society. She urged members to fully utilise products and services of the Society, and ensure that they become ambassadors of the Society. She urged members to recruit members to ensure overall growth of the Society.



MIN/05/2018: ADDRESS BY THE SENIOR CHIEFThe area Senior Chief Mr. Kennedy Gitau thanked the Board for the invitation to the meeting. He informed members that he is also an active member of the Society and is pleased with the services and products offered by Acumen Sacco Ltd. He gave an update of the measures being taken by the National Government to tackle societal vices like crime and drug trafficking.

MIN/06/2018 ADDRESS BY CIC REPRESENTATIVEMs. Maureen Gichaba informed members that CIC and Acumen Sacco had a strategic alliance where the Sacco acts as an agent under the Sacco Assurance Programme. She briefed members on CIC Ltd products and services. The representative also urged the Society to consider insuring members’ deposits.

MIN 07/2018 ADDRESS BY CCIA LTD & CO-OPERATIVE BANK REPRESENTATIVESMs. Carol Mburu from CCIA Ltd and Vasco Kolwe, the Ongata Rongai Cooperative Bank branch manager, congratulated Acumen Sacco Ltd on its 10th anniversary and promised to continue working together in areas of interest e.g. consultancy, training and commercial banking.

MIN 08/2018 ADDRESS BY SUB-COUNTY CO-OPERATIVE OFFICERThe outgoing Sub-County Co-operative office, Mr. Frankison Maina, who was set to retire in August 2018, introduced the incoming Sub-County Co-operative Officer, Ms. Salome Wangui. Mr. Maina noted the continuous efforts by the Kajiado County Government to ensure an enabling and conducive environment for co-operatives to operate. He informed members that co-operatives are a devolved function.

He congratulated Acumen Sacco for being the first Society to hold an AGM in Kajiado County. He urged members to ensure that they elect to the Board and Supervisory positions members who were knowledgeable on financial matters. He noted the tremendous growth of the Society since inception and urged prudent management to ensure continuous growth.

MIN 09/2018 ADDRESS BY THE CHIEF GUEST, COUNTY COMMISSIONER OF COOPERATIVESMrs. Jane Karanja thanked the Board and the Supervisory Committee for inviting her as the chief guest in the 11th AGM. She relayed greetings from the County Chief Officer Mr. Samson Parashina. She assured members of the continuous support the County Government of Kajiado is giving the cooperative movement. She informed members that SASRA has very strict conditions that a Society must meet before a Fosa licence is given. SASRA also subject societies applying for the Fosa licence to very strict interrogation of their operations, physical infrastructure and financial health. She urged members to continue saving highly for better returns. She congratulated the Society for attaining 10 years of continuous growth and for being the first Society to hold its AGM in the county. She also urged the committee to ensure that they get indemnity cover for the Society.

MIN/09/2018 SUPERVISORY COMMITTEE REPORTThe report’s highlights were:

1) Financial performance: The committee noted depressed growth in member deposits, total assets, loan book and turnover (total revenue) i.e. growth was witnessed in 2017 but not as high as in 2016. The committee linked this occurrence to the depressed economy mainly due to the political uncertainty witnessed in the year.



2) Credit management: The committee noted the depressed loan disbursement in 2017 compared to 2016 and urged the board to consider reducing interest rates in 2018. The committee noted the decline of non-performing loans from Kshs 6.92mn in 2016 to Kshs 4.92mn and hailed the collection efforts and strict appraisal methods adopted by the board.

3) Recruitment: The committee called for more efforts towards member recruitment for the Society to achieve its recruitment objective detailed in the strategic plan 2016-2020. Efforts should be also be committed to ensure reactivation of dormant accounts.

MIN/10/2018: AUDITED ACCOUNTS The audited accounts were presented by County Co-operative Auditor Madam Risper Maundu. Reactions to the audited accounts included:

1. Anthony Wanyonyi (M/No. 0579) sought clarification on the difference on the loan balance as per schedule and as per ledger, in Note 7 to balance sheet. The auditor responded that the balance existed as result of a migratory challenge during the system change over and was satisfied that it posed no material impact.

2. Francis Njuki (M/No. 0072), raised concern on the high loan insurance income. The auditor assured him that she was aware of the plan by the board to lower interest rate on loans and accompanying loan charges (which include loan insurance) in 2018.

3. Joseph Mundia (M/No. 0157) sought to know the composition of the figure of purchase of assets, from the cashflow statement. The auditor referred him to the property, plant and equipment scheduled on pg. 44 of the AGM booklet.

The accounts were adopted.Proposer: Anthony WanyonyiSeconder: Francis Njuki

MIN/11/2018: CONSIDER AND APPROVE YEAR 2018/2019 BUDGET

The 2018/2019 operating budget presented by the Treasurer, Mr. Saropa Kimenjo was adopted. Proposer: Christopher Rwengo (M/No. 0531)Seconder: David Mundia (M/No. 0157)

MIN/12/2018: RESOLUTIONS

1. Appointments of AuditorsMembers resolved to retain auditors from the Cooperative Audit Service division in the Ministry of Industrialization and Development Enterprise, Kajiado County Government, to audit the books of the 2018 accounts. Proposer: John Mark Leshao (M/No. 0107)Seconder: John Muchai Muhinja (M/No. 0237)

2. Maximum borrowing powersThe Board was given the power to borrow up to Kshs20 million, if need arises.



Proposer: Stephen Muhoro (M/No. 0023)Seconder: George Gicharu Njuguna (M/No. 0509)

3. Minimum Deposit contribution

Members agreed to raise the minimum deposit contribution per month to Kshs 2,000 from July 1, 2018.Proposer: Anthony Wanyonyi (M/No. 0579)Seconder: Francis Muruli (M/No. 0323)

4. Disposal of surplus

Members resolved the following:

I. To distribute dividend on shares at 12% and interest on deposits (rebates) at 6% on pro-rata basis.II. Members confirmed the following as options of how the dividend on ordinary/Fosa shares and interest on deposit should be treated;a) Capitalize dividends on ordinary share capital (no option other than full capitalization).b) Cash payment of interest on deposits or Fosa dividend to members.c) Utilize Fosa dividend / interest on deposits to pay loans.d) Capitalize Fosa dividend / interest on deposit.Proposer: Joseph Mundia (M/No.0157)Seconder: Miriam Suakei (M/No. 0691)

5. Board endowment cover

Members approved the continued renewal of the Board Endowment cover with CIC LtdProposer: Mr Mobolonzi Makau (M/No. 1064)Seconder: Ms. Jennifer Mugo (M/No. 0153)

MIN/13/2018 ELECTIONSElections were presided over by Sub-County Co-operative Officer Salome Wangui. Retiring Board members Mr. Joseph Kimani and Mrs. Jane G. Njoroge were eligible for re-election. The vetting committee had received six applications for board and supervisory committee positions. Upon vetting, the following candidates were found to vie for board positions:

I. Christopher Githinji Rwengo (M/No. 0561).

II. Rolah Gathuri (M/No. 0376) – Withdrew from the race at the floor before elections.

Those cleared to vie for Supervisory Committee slots were:I. Ernest Kiragu Mugo (M/No. 0344) – Had sent his apology for not attending the meeting.

II. Lilian W. Koinange (M/No. 0818).



Christopher Rwengo, Joseph Kimani and Jane Njoroge were unanimously voted for the board positions.

Ernest Kiragu Mugo got 98 votes against Ms. Lilian W. Koinange’s 38 to clinch the Supervisory Committee seat.

MIN/14/2018: GIFTS

The following were recognised:-1. Highest saver: Patrick Waweru2. Highest contributor in 2017: Paul Rungai3. Member who recruited more members during 2017: Charles Gathama4. Highest corporate saver: Acumen Equities Ltd5. Pioneer board members: Julius Ngamate, Joseph Kimani, Josphat Kinaya and Rahab Mugo.

MIN/15/2018 Votes of thanks Francis Njuki thanked everyone one who participated to make the day successful

There being no other business, the meeting ended at 3.30p.m with a prayer by Josphat Kinaya.

Minutes taken by…………………………………. Hon Secretary

Confirmed by……………………………………… Chairman



2018 CHAIRMAN’S REPORT

Our invited guests and my dear fellow co-operators, We are gathered here today on this auspicious occasion of our 12th Annual General Meeting, to celebrate our collective achievements and shared dreams. It’s another precious moment to chart our common future as a family of investors in this second year of the society’s journey into the second decade. Your board and I are tremendously honoured to have steered our great society this far. Together we have earned recognition in the movement. This is evident from the numerous awards we have received every year at the Ushirika Day celebrations.

But my fellow cooperators, life is a rollercoaster. It has its twists and turns and in four tragic twists, we have lost distinguished members Wycliff Majani Amboga (M/No 0831), David Ndome Kihungi (M/No 0846), Rachael Njeri Muoria (M/No 0451) and Rosemary Wanjiku Gitahi (M/No 0044I). I request we all stand for a moment in honour of the departed. Thank you all.

Operating environment

The country registered improved growth against a backdrop of a stable macroeconomic en-vironment, driven by a recovery in agriculture due to improved weather conditions; enhanced business and consumer confidence. These indications of improvements in the business environ-ment have been facilitated by the ease of doing business, mainly driven by better protection of minority investors, access to credit, improved property registration and insolvency resolution; and increased output in the real estate which grew at 5.8%, manufacturing at 3.2%, and wholesale and retail trade at 6.8%, and favourable weather conditions that positively affected output from agricultural and hydroelectricity activities. The results were improvements in Kenya’s rank by 19 positions to #61 from #80 as per the World Bank Doing Business Report 2019.

Our performanceWith the improved economic environment, our core mandate of mobilising savings from you,

members, and providing credit, rose by 30.86% and 32.38%, respectively. Your savings rose to Kshs178 million last year from Kshs136m in 2017 while outstanding loans stood at Kshs188.8m, up from Kshs142.6m in 2017. You will notice that there was a marginal drop in income, which stood at Kshs20.29m in 2018 compared to Kshs20.87m in 2017. This was as result of lowered loan interest rates to one per cent from 1.25 per cent of the outstanding monthly balance from January 2018. The sole desire for the move being to enable us to continually remain the most competitive in the market. We were and still are optimistic that with the friendly loan interest rate, more members will borrow in 2019 to finance their development and other critical projects.

Your board is committed to steering this great Sacco to even higher levels of growth and is recommending a dividend of 12 per cent on shares and a 5.5 per cent interest on member deposits,



a marginal drop from six per cent in 2017 due the reduced interest income. With increased borrowing, we are confident the interest rate will increase.

To continue improving the Society’s capital base and assure members better returns on their investment in the Society, we are encouraging those among us with minimum shares of Kshs3,000 to raise them to Kshs5,000 by the end of this year.

I wish to emphasise here that our focus as a board is giving affordable loans efficiently and expeditiously, even as we explore other legal investment opportunities that would give members better returns. We can confirm to you that in 2018, there was no loan backlog and all loan applications were disbursed within four days from the date of receipt of applications. There are also loans that are available on demand to help members sort out emergencies. Indeed, we closed 2018 with some Kshs18.17m in the bank waiting for you, members, to borrow and affordably finance your projects. Please don’t go for expensive options like shylocks and commercial mobile loan apps, etc. Some of those lenders may have left some of us with bitter experiences and the society is available for your rescue. Our desire and prayer, however, is that this doesn’t befall any of us again.

Your society continued to register steady growth in membership, shares and deposits, loans, interest rebates and dividends to members. This growth is attributable to your support and the level of confidence you have with the society’s management.

Below is a preview of the Sacco’s performance in 2018 compared to the previous year. Year 2018 2017 Percentage growth

between 2018 & 2017

Registered members 1,377 1,116 23%Share capital

(ordinary+FOSA)

Kshs 15,906,063.89 Kshs 14,693,357.55 8.2%

Outstanding external

debt

Nil Nil nil

Member deposits Kshs 178,039,716.58 Kshs 136,055,696.51 30.86%Outstanding loans

balances to members

Kshs 188,802,296.19 Kshs 142,626,542.90 32.38%

Total assets Kshs 220,682,709.52 Kshs 176,054,868.74 25.35%Interest rebates on

deposits

5.5% 6% -9%

Dividend rate 12% 12% nilTurnover Kshs 20,296,468.65 Kshs 20,874,090.52 -2.76%

Loans issued Kshs 157,071,995.05 Kshs 105,939,550.00 48.26%



Credit and cash handling risksAs we have previously stated and wish to reiterate, credit risk continues to be a major challenge

to our society. We have noted that as the loan portfolio grows, there is an ever-rising threat of loan default, strict loaning policy guidelines notwithstanding. The trend lowers the quality of our assets and denies faithful members an opportunity to reap higher interest and dividend. We are happy to report that we have taken further steps to keep defaulters in check by sharing credit information with credit reference bureaus to lock them out of loans from any bank or financial institution regulated by the Central Bank of Kenya. We continue to pursue defaulters through other legal means, which include use of private investigators and debt collectors. Recoveries from guarantors are our last resort. I urge all members to repay their loans religiously to enable the Society to meet the loan demands of all. Saving regularly, borrowing wisely and paying promptly should be our driving force as Acumen Sacco members.

Handling huge amounts of cash in our offices comes with its risks not just to the money but to our staff and members. Even as we continue to put requisite safeguards on all monies received in cash, we want to encourage members, especially those wishing to make huge payments towards loans repayments, deposits or shares, to opt for alternative methods such as cheques, bank transfers and mobile wallets. These are more secure and convenient. We are encouraging members wishing to pay more than Kshs50,000 to the Society to use alternative modes of payment. Likewise, the office will pay dividend earnings and interest on deposit in cash for amounts below Kshs10,000 from 5th February, 2018. Payments above that will be in cheque. We plan to gradually phase out handling of cash in our office.

Information and Communication Technology (ICT)ICT has increasingly become an important component of all thriving businesses and various

facets of our day to day lives. The Society has invested in a system that generates timely and accurate reports, which are used by management and the board for decision-making and policy formulation. The system enabled our auditors to complete the exercise in a record eight days, down from two weeks in 2017. Our SMS notification system continues to feed us with prompt alerts on our phones on important information from the society, which includes when our loans are

being processed, guarantorship and member creation. Invites to today’s meeting were through SMS. The society’s mobile banking service is ready for launching once security concerns are addressed. The 24-hour service will allow members to make inquiries on loans, shares and deposit balances, guarantorships and make direct cash deposits.

The Society’s website (www.acumensacco.co.ke) is now live. You can download loan forms, membership application forms, guarantor substitution forms and other material such as audited accounts. Immense information about the Society is available on the website, which we plan to continuously improve and update to make it more interactive and serve members’ needs.



FOSA Towards the end of last year, we learnt informally that our Fosa licence application had failed for

not having met some requirements. We immediately launched a formal complaint with Sasra, who apologised for the omission and sent an inspection team in early December. We are still awaiting the outcome of the inspection with cautious optimism.

Partnerships The Sacco in 2018 received its land title deeds for two quarter-acre commercial plots from

Acumen Housing Cooperative Society, who, together with their employees, remain staunch members of the Sacco.

We also recognise the support of Acumen Equities, Vital Properties, Kenol Rongai (Jennet Africa), Kobil Ngong, Jamii Hospital, Ole Tepesi Picnic Site, Rongai Tiles and Romik Tours. They are our business partners either as corporate members and/or remit deductions for their employees who are our members, a gesture we don’t take for granted.

We appreciate the continued close working relationship with the county and subcounty cooperative officials, Cooperative and Equity banks, Surestep Systems & Solutions Ltd, CIC Insurance Group, Cooperative Consultancy Services, Kuscco and national and county government officials and elected representatives in the subcounty.

ChallengesFellow cooperators, having listed our achievements, there are legal challenges posed by the

controversial Sacco Societies (Amendment) Bill, 2018, which intends to bring changes to the Sacco Societies Act, 2008 by overhauling how Saccos operate.

The proposed law seeks to open Saccos to membership by outsiders who have no savings. These “outsiders” who are being called ‘social impact members’ will be allowed only to vote on certain issues affecting them, effectively licensing outsiders with no idea how the cooperative movement works to take over Saccos.

The ‘social impact members’ shall, to the exclusion of other members of the society, only vote on matters concerning them on resolutions relating to their special fund, their investment committee and their special fund trustee. They will also have the privilege of being elected into organs of the society.

We call upon members to support efforts by the Cooperative Alliance of Kenya (CAK), the Kenya Union of Savings and Credit Cooperatives and other like-minded organisations in their efforts to lobby against the proposed law.

There are other legal changes occasioned by the enactment of the Financial Bill of 2018 last September, some with immediate implications on our operations. These include:



1. The rise of excise duty on bank charges from 10% to 20% has a direct effect of increasing cost of bank charges to the Society. As the volume of transactions grows, so will be burden of excise duty. The change became effective from the third quarter of 2018.

2. The rise of excise duty on call rate and internet charges from 15% to 20% has increased the cost of voice calls through mobile phones and internet charges.

3. The introduction of VAT of 8% on fuel products resulted in the immediate rise of fuel pump prices and other related energy costs, including electricity bills. The ripple effect of high fuel prices is automatic inflation, which leads to reduced member disposable incomes and hence lower saving ability.

4. The introduction of presumptive tax at 15% on trade licence/single business permits from January 2019 will lead to automatic increase in the cost trade licences (application & renewal), negatively impacting members’ incomes and saving ability.

5. The new National Housing Fund tax at 1.5% of basic salary for every employee, with an equal amount paid by the employer for all employees - which was to be implemented in January 2019 but has been put on hold awaiting the outcome of a case filed by COTU seeking to stop its implementation - will increase labour costs.

6. Increase of withholding tax on dividends to residents from 5% to 10% will impact net dividends and interest on deposits to members.

ElectionsThree board members, namely Wainainah Kiganya, Pauline Kamba and Josphat Kinaya, and

Supervisory Committee member Kate Kagwiria, will be retiring on rotation today. They are eligible for re-election and have expressed interest to continue serving. Mr Chris Rwengo resigned from the board at the end of 2018 to pursue other interests and members will elect his replacement.

ConclusionTogether, we all have come this far. As a board, we wish to congratulate every member for

their contribution to the Society’s growth in 2018. Without each of our contributions, small or great, we would never have come this far.

I cannot forget our indefatigable members of staff who are always working to ensure that your investments are secure, your loans are processed speedily and your affairs are run smoothly. Through their prudent performance and the guidance of your dedicated board members, we have managed to be among the first in the county and in the country to hold an AGM just four weeks after the close of the financial year. I am confident the team will enable us to build and maintain a financially sound and vibrant financial services provider of choice, in line with our vision, offering contemporary diversified and relevant products to members.

There is strength in numbers, fellow co-operators, and we have been seeking to grow our membership. The Society has also been rewarding members who recruit new members with



Kshs 500 for individual members and Kshs 1,000 for corporate members (registered ‘chamas’, companies and businesses). The commission is payable once the newly recruited member pays registration fee and share capital. Our desire is to hit the 2,000 mark this year and raise the number to 2,500 by the end of 2020. I urge every member to introduce a reliable friend or relative to our society, which can easily enable us to double our membership by the end of 2019.

Once again, we acknowledge the patient guidance of our regulators and county cooperative officials, and the dedication of all our business partners. The diligence of our staff and management, the astute stewardship of your elected officials, and above all, the invaluable resource that is all of you, members, saw the society through the year. We look forward to continue working together as one big team for more joint accomplishments. Together we shall prosper and make this Sacco an institution of choice by generations to come.

Thank you, God Bless you all and remain steadfast in our slogan: Together we prosper.

WAINAINAH KIGANYACHAIRMAN – BOARD OF DIRECTORS



SUPERVISORY COMMITTEE 2018 REPORT

INTRODUCTIONThe cooperative Societies Act section 2 defines the supervisory as,’ an oversight committee elected at a general meeting’. This committee carried out the oversight mandate diligently, through scrutiny of the SACCO operations, verification of records and transactions, as well as providing necessary checks and balances to the SACCO Management.

FINDINGSIn the year 2018, the supervisory committee scrutinized a wide range of issues on a continuous basis including financial management, loans, Marketing, HR, Governance, deposits and the entire operations of the society. Throughout the year, necessary recommendations on areas of improvement were made to the board and we are happy to report that the suggestions were implemented in each case. Our independent opinion is that the SACCO is managed well, within the relevant legal frameworks .The following report outlines our specific observations and recommendations;

1. PerformanceThe SACCO performance marginally reduced in 2018. Interest income fell from Kshs 20.8mn in 2017 to Kshs 20.2mn in 2018 mainly due to reduction of loan interest rate. The volume of loan uptake did not materialize as expected. We urge members to take advantage of the reduced loan interest rate and borrow more from the Society.

2. MarketingThe current marketing activities carried (business-to-consumer) do not offer a competitive advantage in the current Sacco environment.We are of opinion that the society should change every aspect of the primary marketing effort and consider making use of the following; advertising, public relations and calculated strategic alliances

3. GovernanceGood governance involves integrity and ethical dealings in an organisation. It is about processes, practices and structures through which the society manages its business. In our opinion the society’s governance is good. Therefore as you go for elections, ensure you elect persons of integrity with the same strategic minds who can take the society to the next level.

4. ProductsProducts are the core of our business income and the consumption of the available products determines the business profitability of the society. We encourage members to optimally make use of the Society’s products (credit & savings) i.e. make Acumen Sacco their number one financial partner.

5. Member OwnershipMembers are automatic owners of the society by virtue of buying shares and saving regularly.The shares are however negotiable instruments which can be transferred or sold to other



members, new or existing and they have very high returns in the forms of dividend which is payable annually.

It is our opinion that members should increase their shares within the next two years.

6. FOSAFOSA has featured in several of our previous General Meetings, with many unanswered questions to date. We call upon members to exercise patience as the issue is handled to its logical conclusion, since the SACCO continues to offer back office services efficiently

7. ConclusionWe have a lot of confidence with the way the way the society is run and if the momentum is sustained we shall go to greater heights.

Thank you and God bless Acumen Sacco

Signed:

Ernest Mugo (Chairman) Sign………………………..Date 23th January 2019

Katie Stephen (Secretary) Sign………………………..Date 23th January 2019

Stephen Bweya (Member) Sign………………………..Date 23th January 2019





SOCIETY INFORMATION

BOARD MEMBERS CHAIRMAN MR. WAINAINAH KIGANYAVICE CHAIR PERSON MS. PAULINE KAMBAHON.SECRETARY MR. JOSEPH KIMANITREASURER MR. SAROPA KIMENJO

COMMITTEE MEMBERS

MR. JOSPHAT KINAIYA MR. JULIUS NGAMATE MR. CHRIS RWENGO MS. JANE NJOROGE MS. RAHAB MUGO

SUPERVISORY COMMITTEE

CHAIRMAN MR. ERNEST KIRAGUSECRETARY MR. STEPHEN BWEYAMEMBER MS. KATE KAGWIRIA STEPHEN

GENERAL MANAGER

MR.MOSES MATHU

ACCOUNTANT.

CPA BII C HILLARY REGISTERED OFFICE GREAT WIDE MALL-ONGATA RONGAI PO BOX.1325-00200 NAIROBI. PRINCIPAL BANKERS EQUITY BANK CO-OPERATIVE BANK AUDITORS MINISTRY OF INDUSTRY, TRADE AND COOPERATIVESPO BOX.40811-00100 NAIROBI.



REPORT OF THE MANAGEMENT COMMITTEE. The members of the management committee submit their annual report together with the audited financial statements for the year ended 31st Dec 2018 Incorporation The society is incorporated in kenya under the cooperative societies act.cap 490 of 1997 ammended 2004 and is domicilled in kenya. Principal activityThe principal activity of the society continued to be savings and credit cooperative to mobilise members savings and give them credit.

Results 31-12-18 31-12-17 Kshs Kshs

Surplus before tax 3,393,074.29 5,649,232.62 Net operating surplus after tax 3,389,608.99 5,646,200.22 Retained surplus for the year 448,783.51 2,393,504.06

The management committee recommends interest on members deposits of 5.5% (Yr 2017 was 6.0% ). Dividend at 12% on shares( Yr 2017 was 12%) Management Committee The members of the management committee who served during the year and to date of this report is as listed on page 1. By order of management committee

Signature…………………………………………………..Secretary.

Date 18 January 2019



STATISTICAL INFORMATION AS AT 31ST DECEMBER 2018 Number of members 31-12-18 31-12-17(Active) 1012 862

(Dormant) 365 254

1377 1116

FINANCIALS 2018 2017

KSH KSH

Share capital 4,803,018.09 3,647,269.03

Members deposits 178,039,716.58 136,055,696.51

Retained earnings 9,787,992.09 10,230,144.75

Statutory reserve fund 4,998,244.75 4,320,322.95

Current Liabilities 533,494.30 670,927.53

Current assets 27,681,227.19 29,042,115.46

Interest income 20,296,468.65 20,874,090.52 KEY RATIOS

KEY RATIOS 2018 2017

Liquidity ratio 53:1 43:1

Percentage of expenses to revenue 53% 46% STATUS OF THE CAPITAL RATIOS FOR ACUMEN SACCO AS AT 31.12.18

Ration Minimum Actual1 Institutional capital to total assets 8% 6.70%2 Core capital to total assets 10% 13.91%3 Core capital 10,000,000.00 30,692,300.45 4 Core capital to deposit liability 10% 17.24%





STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31ST DEC 2018

31-12-18 31-12-17REVENUE Note KSH KSHINTEREST

Interest from Loans 2a 20,296,468.65 20,874,090.52

Interest expense 2b (8,855,749.30) (8,226,913.33)

11,440,719.35 12,647,177.19

Other interest income 2c 261,001.97 477,833.32

Other interest expense 2d - (455,897.04)

261,001.97 21,936.28

NET INTEREST INCOME 11,701,721.32 12,669,113.47

Other operating income 2e 5,533,576.94 4,381,249.79

NET REVENUE 17,235,298.26 17,050,363.26

Adminstration expenses 3, a-d 11,756,058.00 9,456,221.00

Operating expenses 3e 2,086,165.97 1,944,909.64

TOTAL EXPENDITURE 13,842,223.97 11,401,130.64 NET OPERATING SURPLUS FOR THE YEAR BEFORE TAX 3,393,074.29 5,649,232.62

PROVISION FOR TAX (3,465.30) (3,032.40)

NET OPERATING SURPLUS FOR THE YEAR AFTER TAX 3,389,608.99 5,646,200.22 Less 20% Transfer to statutory researve (677,921.80) (1,129,240.04)

SURPLUS FOR THE YEAR AVAILABLE FOR DISTRIBUTION 2,711,687.19 4,516,960.18 Dividend on shares (1,862,903.68) (1,623,456.12)

Board Honoraria (280,000.00) (500,000.00)

Staff bonus (120,000.00)NET SURPLUS TO RETAINED EARNINGS 448,783.51 2,393,504.06



STATEMENT OF FINANCIAL POSITION FOR THE PERIOD ENDED 31ST DEC 2018

31-12-18 30-12-17

NOTES KSHS KSHS ASSETSCash and cash equivalents 4 18,173,952.48 8,120,299.21

Trade and other receivables 5 9,391,419.71 8,044,567.92

Financial assets 6 115,855.00 12,877,248.33

Loans to members 7 188,802,296.19 142,626,542.90

Property Plant & Equipments 14 4,199,186.21 4,386,210.38

TOTAL ASSETS 220,682,709.59 176,054,868.74

LIABILITIESTrade and other payables 8a-b 533,494.30 670,927.53

Interest on deposits payable 10(b) 8,855,749.30 8,226,913.33

Dividend on shares payable 10(a) 1,862,903.68 1,623,456.12

Members deposits 7 178,039,716.58 136,055,696.51

Children, Holiday fund 8c 698,545.00 234,050.00

Interest bearing liability 9 - -

TOTAL LIABILITIES 189,990,408.86 146,811,043.49

SHAREHOLDERS FUNDShare Capital 7 4,803,018.09 3,647,269.03

Fosa share capital 7 11,103,045.80 11,046,088.52

Reserves 11 14,786,236.84 14,550,467.70

TOTAL SHAREHOLDERS FUND 30,692,300.73 29,243,825.25 TOTAL LIABILITIES & SHAREHOLDERS FUND 220,682,709.59 176,054,868.74

THE FINANCIAL STATEMENTS APPEARING ON PAGES 6-14 WERE AUTHORIZED FOR ISSUEBY THE BOARD AND SIGNED ON ITS BEHALF BY:

CHAIRMAN……………………………...TREASURER……………………………….

SECRETARY………………………DATE 18 January 2019



STATEMENT OF CHANGES IN EQUITY FOR THE PERIOD ENDED 31ST DEC 2018

SHARE CAPITAL

FOSA SHARE CAPITAL

RETAINED EARNINGS

STATUTORY RESERVES

TOTAL EQUITY

As at 1st January 2017 2,792,886.65 10,837,427.77

7,649,421.15 3,191,082.91 24,470,818.48

Total recognized surplus 2017

- - 5,649,232.62 - 5,649,232.62

Transfer to statutory reserves - - (1,129,240.04) 1,129,240.04 -

Prior year adjustment N12

- - 187,219.24 - 187,219.24

Additions 854,382.38 208,660.75 - - 1,063,043.13

Tax provision - - (3,032.10) - (3,032.10)

Provision for dividends - - (1,623,456.12) - (1,623,456.12)

Honoraria/bonus -provision - - (500,000.00) - (500,000.00)

At the end of 2017 3,647,269.03 11,046,088.52

10,230,144.75 4,320,322.95 29,243,825.25

As at 1st January 2018 3,647,269.03 11,046,088.52

10,230,144.75 4,320,322.95 29,243,825.25

Total recognized surplus 2018

- - 3,389,608.99 - 3,389,608.99

Transfer to statutory reserves - - (677,921.80) 677,921.80 -

Prior year adjustment N12

(887,470.87) (887,470.87)

Additions 1,155,749.06 56,957.00 - - 1,212,706.06

Tax provision - - (3,465.30) - (3,465.30)

Provision for dividends - - (1,862,903.68) - (1,862,903.68)

Honoraria/bonus - - (280,000.00) - (280,000.00)

Staff bonus (120,000.00) (120,000.00)At the end of 2018 4,803,018.09 11,103,045.52 9,787,992.09 4,998,244.75 30,692,300.45



STATEMENT OF CASH-FLOW FOR THE PERIODENDED 31ST DEC 2018

31.12.18 31.12.17CASH FLOW FROM OPERATING ACTIVITIESInterest receipts 20,296,468.65 20,874,090.52

Other interest income 261,001.97 477,833.32

Other operating income 5,533,576.94 4,381,249.79

Prior year adjustment (912,900.00) 28,522.00

Payment to employees and suppliers (12,774,399.00) (10,250,549.00)

Interest paid on member deposits (8,226,913.33) (5,664,213.03)

Dividends paid (1,623,456.12) (1,550,617.53)

Interest paid on Loans - (455,897.04)

Interest Rebates &Dividends retained 521,963.03 499,687.34

Honoraria paid (500,000.00) (500,000.00) 2,575,342.14 7,840,106.37

(Increase)/Decrease in operating Assets

(Increase)/Decrease in Loan to members (46,175,753.29) (5,243,059.49)

(Increase)/Decrease in Trade and other receivables (1,346,851.79) 437,605.25 (47,522,605.08) (4,805,454.24)

Increase/(Decrease) in operating Liabilities

Members deposits 41,984,020.07 16,663,302.43

Childrens/ Holiday fund 464,495.00 (145,950.00)

Trade and other payables (578,498.53) (486,327.00) 41,870,016.54 16,031,025.43

NET CASH FLOW FROM OPERATIONS (3,077,246.40) 19,065,677.56

CASH FLOW FROM INVESTING ACTIVITIES

Purchase of assets (843,200.00) (917,500.00)

Kuscco Central finance - -

Increase /decrease in financial assets 12,761,393.33 (6,602,197.45)NET CASH FLOW FROM INVESTING ACTIVITIES 11,918,193.33 (7,519,697.45)

CASH FLOW FROM FINANCING ACTIVITIES



Interest bearing Liability - (8,725,942.96)

Increase in Fosa shares 56,957.28 208,660.75

Increase in share capital 1,155,749.06 854,382.38 NET CASH FLOW FROM FINANCING ACTIVITIES 1,212,706.34 (7,662,899.83)NET INCREASE/DECREASE IN CASH & CASH EQUIVALENTS 10,053,653.27 3,883,080.28

ADD

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 8,120,299.21 4,237,218.93 18,173,952.48 8,120,299.21

REPRESENTED BYCASH AND CASH EQUIVALENTS AT THE END OF THE YEAR 18,173,952.48 8,120,299.21



NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31ST DEC 2018 (1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. The principal accounting policies adopted in the preparation of these financial statements are set below: (a) Statement of compliance & basis of preparation The financial statements are prepared in accordance and comply with international financial reporting standards. financial statements are presented in the functional currency, kenya shillings (kshs) and prepared under historical cost convention,as modified by revaluation of certain assets as prescribed by IFRSs, (b) Revenue recognition Income was derived from interest from members loans. (c) Tax Tax is provided on the basis of the results for the year ,as shown in the financial statements in compliance with the,adjusted in accordance with tax legislation. (d) Statutory Reserves Transfers are made to the statutory reservesfund at a rate of 20% of net operating surplus after tax provision of section 47 (1&2) of the cooperative societies act Cap 490. (e) Trade and other payables Trade and other payables are recognised initially at fair values and subsequetly measured at amor-tised cost using the effective interest rate method. (f) Cash and Cash equivalents Cash and cash equivalents comprise cash on hand and demand deposits and other short term highly liquid investments that are readly convertible to a known amount of cash and are subject to insignificant risk of changes in value.

31.12.18 30-12-17

KSHS KSHS

2a INTERST INCOMEINTEREST ON MEMBERS LOAN 20,296,468.65 20,874,090.52

20,296,468.65 20,874,090.52

b INTEREST EXPENSEInterest on members deposits (8,855,749.30) 8,226,913.33

c OTHER INTEREST INCOMEInterest from CIC MMF 261,001.97 477,833.32

Interest from Co-op bank call deposits - -



Interest on Kuscco deposits - - 261,001.97 477,833.32

d OTHER INTEREST EXPENSEInterest on kuscco Loan - Interest on Acumen housing Loan - Interst on Chase bank Loan - 455,897.04 Interest paid on capitalized dividend - Interest on Fixed deposit - -

- 455,897.04

e OTHER OPERATING INCOMEEntrance fee 282,000.00 221,000.00 Loan form fee 190,512.09 333,200.00 Loan insurance 2,652,364.17 2,327,688.68 CIC Rebates 11,551.00 10,107.00 Commission on Loan offset 1,362,458.26 808,944.93 Loan processing fee 789,032.80 487,108.15 CIC Agency commission 75,015.00 68,485.00 Mpesa agency commission 25,637.00 - Co-op bank agency commission 9,256.30 - Boma safi - - Transfer fee - - Miscellaneous Income 135,750.32 124,716.03

5,533,576.94 4,381,249.79

3.a ADMINISTRATIVE EXPENSESPrinting and stationery 150,078.00 120,060.00 Telephone and postage 51,466.00 57,050.00 Public relation and advertising 36,000.00 70,500.00 Boma safi - - Repairs and maintenance 48,400.00 88,455.00 Computer expenses 248,948.00 243,016.00 Rent and rates 1,260,000.00 1,260,000.00 System development expenses 69,600.00 99,600.00 Registration of by-laws - - Co-operate Social Responsibility - 60,000.00 Legal fees 61,500.00 26,100.00 Security charges - - Cleaning material and sanitation 15,085.00 12,580.00



General insurance of assets 118,660.00 111,828.00 License 225,000.00 85,000.00 Electricity, Water and Generator fuel expense 201,349.00 112,892.00 Sundry expenses & welfare 41,487.00 57,100.00 Strategic plan 186,400.00 92,300.00 Entertainment 126,915.00 84,610.00 Marketing expenses 655,994.00 593,190.00 Team bulding - 55,900.00

3,496,882.00 3,230,181.00

b STAFF EXPENSESSalaries and wages 3,488,975.00 2,781,010.00 House allowance 909,000.00 550,800.00 NSSF 16,800.00 16,200.00 Provident fund 159,750.00 86,000.00 Travel & subsistance allowance-staff 60,830.00 42,550.00 Leave allowances 21,000.00 10,500.00 Terminal dues - - Medical cover 293,359.00 396,867.00 NITA contributions 4,200.00 3,700.00 Education-staff 295,140.00 194,100.00 Fringe benefit tax expense to employer 5,610.00 - Acting allowances 70,359.00 -

5,325,023.00 4,081,727.00

c GOVERNANCE EXPENSESAGM Expenses 433,734.00 357,150.00 Education-members 617,787.00 245,318.00 Education- Board members 516,300.00 254,205.00 Board -siting allowance 1,139,780.00 955,500.00 Board travel & subsistance 43,872.00 107,700.00 Ushirika day celebrations 89,800.00 65,540.00

2,841,273.00 1,985,413.00

d PROFESSIONAL EXPENSESAudit fees 37,600.00 35,000.00 Subscription fees 55,280.00 23,900.00 Consultancy/Policy fees - 100,000.00

92,880.00 158,900.00 TOTAL 11,756,058.00 9,456,221.00



e FINANCIAL EXPENSES(other operating expenses)Bank charges 104,103.00 85,081.50 Depreciation provision 780,224.97 865,581.19 Doubtful loans - 10,039.95 Write-off of office partition 250,000.00 250,000.00 Capitalised rebates not provided for - - Loan insurance expense 912,732.00 722,323.00 Credit reference Bureau 39,106.00 11,884.00

2,086,165.97 1,944,909.64

4 CASH AND CASH EQUIVALENTSEquity Bank Current account 5,286,792.70 1,885,854.22 Chase Bank Current account 435.41 435.41 Cooperative bank 5,485,347.04 1,924,848.67 Petty cash 16,317.00 37,374.20 Quick cash/J-sort account 47,802.00 16,579.30 Cash receipt in office 190,294.98 288,569.91 M-pesa paybill number 291,827.00 147,395.00 Coop call deposit account 6,600,000.00 3,600,000.00 Mpesa agency account 143,767.00 114,780.00 Coop agency account 111,369.35 104,462.50

18,173,952.48 8,120,299.21

5 TRADE & OTHER RECEIVABLESRent deposit 241,800.00 241,800.00 Electricity deposit 2,500.00 2,500.00 Interest receivable 614,155.18 271,415.39 Group funeral cover 364,548.90 325,821.90 Acumen Equities Ltd 6,472,142.63 5,323,873.63 Insurance -in-transit- Members 360,000.00 330,000.00 Vital properties ltd 1,336,273.00 1,549,157.00

9,391,419.71 8,044,567.92

6 FINANCIAL ASSETSShares-Kuscco 100@100 10,855.00 10,855.00 Shares-CIC [email protected] 105,000.00 105,000.00 Acumen housing - 600,000.00



CIC MMF Fund - 11,248,493.33 Cic board endowment fund - 912,900.00

115,855.00 12,877,248.33

7 SHARES, LOANS AND DEPOSIT BALANCES LoansBalance per ledger 188,802,296.19 142,626,542.90 Balance per shedule 188,802,296.19 142,687,607.00

SHARE CAPITAL (Ordinary share capital)Bal b/f 3,647,269.03 2,792,886.65 Contributions in the year 1,155,749.06 854,382.38 Capitalized - - Balance c/f 4,803,018.09 3,647,269.03

SHARE CAPITAL (FOSA)Bal b/f 11,046,088.52 10,837,427.77 Contributions in the year 56,957.28 208,660.75 Capitalized - - Balance c/f 11,103,045.80 11,046,088.52

LOAN TO MEMBERSBalance b/f 142,626,542.90 137,383,483.41 Granted during the year 157,071,995.05 105,939,550.00 Repayments in the year (110,896,241.76) (100,696,490.51)Bal c/d 188,802,296.19 142,626,542.90

MEMBER DEPOSITSBal b/f 136,055,696.51 119,392,394.08 Contributions during the year 50,939,999.04 35,126,816.33 Refunds & recoveries in the year (9,477,942.00) (18,963,201.24)Interest rebates retained 521,963.03 499,687.34 Bal c/d 178,039,716.58 136,055,696.51

8a TRADE AND OTHER PAYABLESTax provision 8b 3,465.00 3,032.40 Audit and Supervision fee 37,600.00 35,000.00 Board Honoraria 280,000.00 500,000.00 Staff bonus 120,000.00



PAYE 53,163.00 48,816.00 NSSF 2,800.00 2,800.00 NHIF 7,800.00 7,050.00 Surestep - - Provident Remittance 28,550.00 17,000.00 Pamoja life(jikokoa) - - Accrued expenses - - Sundry creditors - 31,800.00 Unpaid dividends - 25,429.13 Collection Africa Ltd 116.30 - TOTAL PAYABLES 533,494.30 670,927.53

8b Taxable incomeCIC Rebates 11,551.00 10,107.00 Tax @30% 3,465.30 3,032.10

8c Childrens fund 331,045.00 162,050.00 Holiday savings 145,500.00 72,000.00 School fee savings - - Unidentified deposits 222,000.00 -

698,545.00 234,050.00

9 INTEREST BEARING LIABILITYChase bank loan - - Member creditor - -

- -

10 The management proposes to distribute surplus as follows

a Dividend payable Year's provision (1,862,903.68) (1,623,456.12)

b Interest on deposit payableYear's provision (8,855,749.30) (8,226,913.33)This shall be paid upon the approval of the AGM and interest shall be paid net of 10% withholding tax.



11 RESERVESRetained earnings 9,787,992.09 10,230,144.75 Statutory reserves 4,998,244.75 4,320,322.95

14,786,236.84 14,550,467.70

12 Prior year adjustmentsPosting not captured during previous years - - Interest rebates for members who withdrew 25,429.13 - Witholding tax not provided for - - Overprovision of interest rebates 2016 - 158,697.24 Uncaptured 2016 income on loan insurance(LBCH 142)

- 28,522.00

Adjustment of board endowment 2016/17 (912,900.00) - (887,470.87) 187,219.24

13 AUDITOR’S GENERAL OBSERVATIONS

INTEREST RATES AND INSURANCE ON LOANS

It has been observed that loans have become cheaper with the reduction of interest on loans and also refund of insurance premium for those who cleares there loans before the scheduled time. This should encourage members to take more loans .With time the negative effect of reduction on loans interest income will be balanced



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BUDGET: YEAR 2019-2020

notes TOTAL TOTAL TOTAL TOTAL

ACTUAL BUDGET BUDGET MONTHLY BUDGET

2018(Extrapolated) 2018 2019 2019

INCOME: Ksh. Kshs. Kshs. KSHS.

Interest income 1 20,100,521.28 26,540,017.00 26,800,000.00 2,233,333.33

Total interest on loans 20,100,521.28 26,540,017.00 26,800,000.00 2,233,333.33

Other incomes

Entrance fee 2 300,000.00 360,000.00 360,000.00 30,000.00

Commission on Cheque clearance - 3,000.00 - -

Commission & rebates from C.I.C 3 42,990.67 15,000.00 50,000.00 4,166.67

Loan form fee 4 347,305.16 360,000.00 400,000.00 33,333.33

Loan insurance fee 5 2,864,771.47 2,000,000.00 2,500,000.00 208,333.33

Loan processing/appraisal fee 6 812,607.08 600,000.00 900,000.00 75,000.00

CIC MMF interest income 7 330,030.08 510,000.00 - -

Commission on bankers cheque - 12,000.00 - -

Service charge - 72,000.00 - -

Commission on loan offset 8 1,536,866.76 600,000.00 1,600,000.00 133,333.33

Commission on standing order - 2,400.00 - -

ATM Card charges - 13,200.00 - -

Safe custody - 5,500.00 - -

M-Pesa commission 9 44,905.33 30,000.00 65,000.00 5,416.67

ATM service charge - 2,160.00 - -

sms banking fee - 1,800.00 - -

M-banking commission - 8,640.00 - -

Bank agency - 12,000.00 - -

Miscellaneous Income 90,800.00 - - -

other income total 6,370,276.55 4,607,700.00 5,875,000.00 489,583.33

TOTAL INCOME 26,470,797.83 31,147,717.00 32,675,000.00 2,722,916.67

EXPENDITURE:

PERSONNEL EXPENSES:

Salaries and Wages 10 4,393,300.00 4,620,000.00 5,287,500.00 440,625.00

Travelling allowance - 50,000.00 - -

Staff Travel and subsistence allowance

11 57,160.00 40,000.00 75,000.00 6,250.00

N.S.S.F. 12 16,800.00 16,800.00 21,600.00 1,800.00



National Housing Development fund

13 - - 75,600.00 6,300.00

NITA Contributions 14 4,200.00 4,200.00 4,800.00 400.00

Staff Training 15 265,520.00 250,000.00 300,000.00 25,000.00

Acting allowance 16 87,012.00 40,000.00 60,000.00 5,000.00

Membership subscriptions 17 37,733.33 30,000.00 35,000.00 2,916.67

Staff pension fund 18 155,898.67 231,000.00 198,000.00 16,500.00

leave allowance 19 17,333.33 24,500.00 17,000.00 1,416.67

Group medical cover 20 391,145.33 500,000.00 500,000.00 41,666.67

Staff entertaiment 21 58,746.67 - 60,000.00 5,000.00

terminal dues - 50,000.00 - -

Responsibility allowance - 20,000.00 - -

TOTALS 5,484,849.33 5,876,500.00 6,634,500.00 552,875.00

GOVERNANCE EXPENSES

Committee sitting allowance 22 973,920.00 1,492,700.00 1,492,700.00 124,391.67

Committee entertainment 23 34,586.67 - 40,000.00 3,333.33

Committee trav. & subsistence 24 33,162.67 96,000.00 150,000.00 12,500.00

Board Endownment 25 - - 450,000.00 37,500.00

Committee Trainings 26 349,733.33 300,000.00 400,000.00 33,333.33

Inspection & Monitoring 27 - 50,000.00 20,000.00 1,666.67

Member's Education 28 306,040.00 400,000.00 400,000.00 33,333.33

General meeting Expenses 29 423,734.00 450,000.00 520,000.00 43,333.33

Ushirika day celebrations 30 89,800.00 80,000.00 80,000.00 6,666.67

TOTALS 2,210,976.67 2,868,700.00 3,552,700.00 296,058.33

ADMINISTRATIVE EXPENSES:

Electricity, water & fuel 31 161,124.00 120,000.00 200,000.00 16,666.67

Repair service & maintenance 32 35,733.33 150,000.00 50,000.00 4,166.67

Legal, fees 33 59,333.33 30,000.00 80,000.00 6,666.67

Entertainment 34 - 60,000.00 20,000.00 1,666.67

System development 35 92,800.00 80,000.00 80,000.00 6,666.67

Security 36 - 732,000.00 300,000.00 25,000.00

Licence 37 225,000.00 230,000.00 90,000.00 7,500.00

General insurances 38 158,213.33 130,000.00 130,000.00 10,833.33

Marketing & Advertisement 39 502,714.67 700,000.00 1,000,000.00 83,333.33

Strategic plan (Monitoring & Review)

40 - 150,000.00 200,000.00 16,666.67

Computer expenses & internet 41 252,957.33 220,000.00 250,000.00 20,833.33

Corporate social Responsibilities 42 - 100,000.00 100,000.00 8,333.33



Cleaning materials & sundries 43 14,740.00 20,000.00 20,000.00 1,666.67

Printing & stationery 44 151,776.00 230,000.00 150,000.00 12,500.00

Telephone and Postage 45 51,701.33 72,000.00 60,000.00 5,000.00

Public relation 46 26,666.67 150,000.00 50,000.00 4,166.67

Plot rates/rent 47 1,260,000.00 1,320,000.00 1,320,000.00 110,000.00

Office Expenses & sundries 48 33,374.67 60,000.00 56,000.00 4,666.67

Sasra expenses - 60,000.00 - -

Contigency 49 - 100,000.00 50,000.00 4,166.67

TOTALS 3,026,134.67 4,714,000.00 4,206,000.00 350,500.00

TOTALS 2,589,777 1,964,200 4,352,200 362,683

FINANCIAL EXPENSES:

Bank Charges 50 96,537.33 96,000.00 100,000.00 8,333.33

Income tax 51 - 30,000.00 30,000.00

Interest expense on interest bearing liabilities

52 - - 100,000.00 8,333.33

Provision for loan loss - 250,000.00

loan insurance 53 912,732.00 1,000,000.00 1,000,000.00 83,333.33

Credit reference bureau expenses 54 40,418.67 20,000.00 50,000.00 4,166.67

Provision for depreciation 55 711,114.67 800,000.00 700,000.00 58,333.33

TOTALS 1,760,802.67 2,196,000.00 1,980,000.00 162,500.00

Credit reference bureau expenses 71 - 80,000 50,000 4,167

M-Banking Expenses 72 - - 10,000 833

A.T.M. Expenses 73 - - 20,000 1,667

Depreciation 74 300,000 300,000 750,000 62,500

2,609,408 2,253,983 3,600,354 300,030

PROFESSIONAL EXPENSES

Audit fees 56 - 60,000.00 50,000.00 4,166.67

Consultancy fees 57 - 100,000.00 150,000.00 12,500.00

Supervision and Subscription fees 58 20,070.00 25,000.00 5,000.00 416.67

TOTALS 20,070.00 185,000.00 205,000.00 17,083.33

TOTALS 12,502,833.33 15,840,200.00 16,578,200.00 1,379,016.67

TOTAL INCOME 26,470,797.83 31,147,717.00 32,675,000.00 2,722,916.67

TOTAL EXPENSES 12,502,833.33 15,840,200.00 16,578,200.00 1,379,016.67

SURPLUS 13,967,964.49 15,307,517.00 16,096,800.00 1,343,900.00



CAPITAL BUDGET 2019-2020

SNO. ITEM QUANTITY COST/UNIT TOTAL COST QUARTER

1 OFFICE REORGANIZATION MASTERPLAN

1 50,000 50,000 Q1

2 NETWORK FORTIFICATION 1 250,000 250,000 Q1

3 ASSET TAGGING 1 50,000 50,000 Q1

4 UPS HIGH CAPACITY 2 45,000 90,000 Q1

5 THERMAL PRINTERS 2 17,000 34,000 Q2

6 OFFICE WAITING BAY-(CREDIT OFFICE)

1 15,000 15,000 Q1

7 DESKTOP COMPUTERS 2 65,000 130,000 Q28 BANKING HALL TV SCREEN 1 25,000 25,000 Q39 HD DIGITAL CAMERA 1 15,000 15,000 Q110 LARGE FILLING CABINETS 3 50,000 150,000 Q2

532,000 759,000



NOTES TO THE BUDGET1) Interest earned from loans, volume is expected to grow in 2019 2) The entrance fee will be Kshs 1,000 and monthly recruitment of 30 members 3) Commission will be earned from sacco assurance business and dividends from shares held in CIC Ltd 4) Commission earned on loans disbursed, volume of loan application is expected to grow given the reduced loan interest & charges. 5) Loan insurance fee it varies with amount applied and term of the loan, it cover against loss to society due to death/incapacitation of the applicant. 6) Loan processing fee will remain at 0.2% of loan applied, anticipated growth of volume of loan applications. 7) Interest from CIC MMF at the prevailing market rates, incase of any placement of such deposits, driven low loan demand 8) Commission on loan offset ahead of schedule 9) Commission expected from Mpesa transactions. 10) Salaries and wages is budgeted for members of staff considering the inplementation of the last phase of salary increment 11) Staff subsistence is cater for anticipated activities in 2019 12) NSSF is budgeted at the current rate of Ksh.200 per emoloyee. 13) National housing development fund, as directed by finance bill 2018, the employers’ contribution @ 1.5% of basic salary for all employees. 14) NITA contribution for staff, 2019 15) Education and seminar is to cater for staff trainning in 2019. 16) Acting allowance is to cater the staff who act at higher capacity for a period more than 21 days 17) subscriptions fee paid by the employer to professional bodies e.g. ACCA, ICPAK,MSK 18) Provident fund, employer’s expense for 2019 19) Leave allowance is budgeted for members of staff 20) Medical cover for staff members 21) staff entertainement is to cater for office tea for staff 22) Sitting allowance is to cater for board members while attending board and committee meetings MEETING NO. SITTING AMT@SITTING TOTAL Full board 9 56,900.00 512,100.00 Joint board & supervisory 3 75,200.00 225,600.00 Finance &admin Committee 6 25,700.00 154,200.00 audit Committtee 3 18,300.00 54,900.00 credit Committee 12 19,000.00 228,000.00 Edu&bs.dev Committee 4 18,500.00 74,000.00 Supervisory Committee 4 18,300.00 73,200.00 adhoc meetings 3 56,900.00 170,700.00 Total 1,492,700.00



23) Tea and snacks during committee meetings 24) Committee travelling to cater for board members travel expenses 25) Board retirement benefit, 2019 26) Committee seminar is to cover board members training for 2019. 27) To cater for inspection by authorities, 2019 28) Member education is to cater for education expenses for general membership 29) AGM expenses for 2019 30) To cover annual ushirika day 2019. 31) Electricity & water bills 2019 32) General repairs to sacco assets in 2019 33) Legal fees for legal services offered to the sacco. 34) Entertainment for visitors to the office 35) System development, to cater for annual system support by the vendor 36) Security includes: a) Day & night guards: 15000*1*12 = 180000 b) Alarm response: 10,000*12 = 120,000 total = kshs 300,000 37) Licenses to cover single business permit, non-food license (public health) and licenses for advertisements on Sacco building 38) General insurance for sacco assets against, fire, burglarly and political violence 39) To review strategic plan 2016-2020. 41) To cater for internet costs and computer repairs 42) To cover planned CSR activities in 2019 43) For cleaning of the sacco premises 44) To cater for stationery requirements 45) To cater for telephone and postage costs 2019.46) Public relations expense aimed at creating and maintaining positive publicity about the sacco47) Cover rent costs 2019. 48) To cater for office expenses 49) To cover any unexpected occurrence that be anticipated or budgeted for. 50) To monthly cover bank charges & cost of new cheque books 52) Interest expense on fixed deposit paid to members who have placed FDRs with the sacco, expected to rise with demand 53) Loan insurance expense for the growing portfolio in 2019 54) CRB charges with increasing number of reports ‘pulled’ by the sacco on potential loan applicants 55) Depreciation for increased number of fixed assets 56) Audit fees for annnual financial reports 57) Consultancy fee for expertise services offered to the sacco. 58) Payment for any affiliations of the Society, e.g. Kuscco or CAK



PROPOSED RESOLUTIONS FOR 20191. APPOINTMENT OF AUDITORS

That the board be allowed to appoint the Cooperative Audit Service division in the Ministry of Industrial-ization and enterprise development to audit accounts for the year 2019.

2. Maximum Borrowing Powers

That the Board be given the power to borrow up to Kshs 20 million, if need arises.

3. Minimum Share capital

That the minimum share capital per member be raised from Kshs 3,000 to Kshs 5,000, by 31.12.2019.

4. Disposal of Surplus

a. That members be given the option to receive their dividends/interest rebates as follows:i. Capitalise dividends on ordinary share capital (No other utilization of dividends on ordinary share capital).ii. Capitalize Fosa dividends/rebates to deposits.iii. Cash payments of Fosa dividends/ interest rebates to membersiv. Utilize Fosa dividends/interest rebates to pay loans.b. Any unclaimed dividends/ interest rebates after two months from the date of the AGM, will be capitalized to deposits.

NOTES

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L I M I T E DACUMEN SACCO SOCIETY

Great Wide Mall - Ongata RongaiP. O. Box 1325-00200 Nairobi, Kenya

Cell: 0713 805 770, 0782 805770, 0771878770Web: www.acumensacco.co.ke

Email: [email protected]

Together we prosper

@acumensacco

Acumensacco

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