NGWATA FRIENDS SELF HELP GROUP

FINANCIAL STATEMENTS AND AUDITED ACCOUNTS FOR THE

PERIOD ENDED 30TH NOVEMBER 2018

ACCOUNTANT
MAGARA AND ASSOCIATES
LOITA HOUSE 3RD FLOOR ROOM NO.15
P.O BOX 10325-00100GPO,
NAIROBI KENYA

NGWATA FRIENDS SELF HELP GROUP

FINANCIAL STAEMENTS AND AUDITED ACCOUNTS FOR PERIOD ENDED 30TH JUNE 2018

TABLE OF CONTENTS

CONTENT PAGE NO

1 GROUP INFORMATION 1

2 INCOME STATEMENT 2

3 BALANCE SHEET 3

3 LOAN ANALYSIS 4 - 6

4 MEMBERS SHARES ACCOUNT 7

5 MEMBERS SAVINGS ANALYSIS 5

6 SITTING CONTRIBUTION ACCOUNT 9

7 LATENESS AND ABSENTISM 10

8 LATE CONTRIBUTION ANALYSIS 11

NOTES TO THE ACCOUNTS OBSERVATIOS

9 AND RECOMEDATIONS 12-13
 NGWATA FRIENDS SELF HELP GROUP

FINANCIAL STATEMENTS AND AUDITED ACCOUNTS FOR PERIOD ENDED 30TH NOVEMBER 2018

GROUP INFORMATION

GROUP NAME NGWATA FRIENDS SELF HELP GROUP

ADRESS P.O BOX 247 00519 MLOLONGO

MOBILE

REGISTERED OFFICE MLOLONGO

NUMBER OF MEMBERS 14

PRINCIPAL BANKER EQUITY BANK

KITENGELA BRANCH '070

ACCOUNT '0160785046

PERIOD OF AUDIT 01DEC 201 17

AUDITORS MAGARA AND ASSOCIATES

LOITA HOUSE 3RD FLOOR ROOM 15
P.O BOX 10325-00100 GPO
NAIROBI,KENYA.
page 1
 NGWATA FRIENDS SHG
INCOME AND EXPENDITURE STATEMENT
FOR THE YEAR ENDED 30th November 2018

FINANCIAL YEAR Dec 2016 -Nov 2017

INCOME NOTES AMT (KES)
Operating Income 7 128,875.00
Other Income(Interest) -

Gross Income 128,875.00

EXPENSES
Administration Expenses 4&5 14,280.00
Finance Cost 8 2,200.00

Total Expenses 16,480.00

Net Income before Tax 112,395.00

Tax Expenses -

Net Income for the Year 112,395.00

Total profit less Fine
Divideds to members equivalent 42,390.00
To reserved Account 70,005.00

Ngwata friends SHG Financial Statements Authorised And Issued on ____/____/2018

And Signed on its behalf by:

Chairman Sign__________________ Date ____/____/2018

Treasurer Sign__________________ Date ____/____/2018

Audit Committee Member

Sign__________________ Date ____/____/2018
 NGWATA FRIENDS SHG
STATEMENT OF FINANCIAL POSITION
FOR THE PERIOD ENEDED 30TH NOVEMBER 2018

FINANCIAL
ASSETS YEAR Dec 2017-30th Nov.2018
NOTES AMT (KES)
Non- Current Assets
Land and buildings 3 726,800.00

Total Non-Current Assets 3 726,800.00

Current Assets
Cash and Cash equivalents 2 428,228.00
Accounts Receivables 6 389,400.00
Suspense Account -
Total Current Assets 817,628.00

TOTAL ASSETS 1,544,428.00

EQUITY AND LIABILITIES NOTES AMT (KES)

Liabilities
Accounts Payables 5 11,000.00

Financed By:
Share Capital a/c Shares 880,880.00
members savings Savings 418,379.00

Revenue Reserve 9 142,495.00

Suspense Account 91,674.00
Total Equity and Liabilities 1,544,428.00

Ngwata Friends SHG Financial Statements Authorised And Issued on ____/____/2018

And Signed on its behalf by:

Chairman Sign__________________ Date ____/____/2018

Treasurer Sign__________________ Date ____/____/2018

Audit Committee Member Sign__________________ Date ____/____/2018

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 NGWATA FRIENDS SHG
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30th November 2018

1 Equity
DATE PARTICULARS Amount
Members Shares 880,880.00

Members Savings 418,379.00

2 Cash at Bank
Equity bank Balance as at 30/11/2018 428,228.00
other Deposits -
Total 428,228.00
Total Cash and Cash Equivalents 428,228.00

3 Ngwata friends Investment

PHASE 3 PLOT 312,800

Kajiando/Oletepes 414,000
726,800.00
Preliminary Expenses
4 Group registration cert renewal 1,300.00

1,300.00

Total 728,100.00

5 Accounts Payable
Accounting Fees 11,000.00
11,000.00

6 Accounts Receivable
Accrued Members LOANS (Debtors)
Mr. & Mrs Francis Ogaro 75,000.00 DONE
Mr. & Mrs. Edson Gwako -
Mr.& Mrs. Mwire Ongeri -
Mr.& Mrs. Ronald Ogata 40,700.00
Mr.& Mrs. Benard Mesa -
Mr.& Mrs. James Onduso 11,600.00
Mr.& Mrs. Godfrey Nyakoe (3,000.00)
Mr.& Mrs. Esbon Arati 27,500.00
Mr.& Mrs. Evans Ongubo 42,600.00
Mr.& Mrs. Isaack Mayieka 22,500.00
Mr.& Mrs. George Omangi 1,500.00
Mr.& Mrs. Robert Mogaka 20,000.00
Mr.& Mrs. Denis Opiyo 96,000.00
Mr.& Mrs. Austine Kyalo 55,000.00
Mr.& Mrs. Denis Ogata -
Totals 389,400.00

7 Operating Income
Late and absentism penalties 5,200.00
Late contribution penalties 6,850.00
Interest on loan 58,870.00
Loan fines 57,955.00
Bank deposit interest -
Total 128,875.00

Total Income 128,875.00

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8 Finance Costs
 Bank service Charges 2,200.00
Mpesa Transaction Charges -
Total 2,200.00

9 Reserved Account
Balance as at 01/12/2017 72,490.00
Year 2017/2018 Fines 70,005.00
142,495.00

SAVINGS AND SAVINGS

1 The target of both shares and savings of ksh 72000 ksh 84000 were not reached that is only ksh.55000 of shares was
received while only ksh 66923 of savings was received -84000
2 The passbooks were properly updated for both shares and savings for each member but there was no
receipt books to confirm the payments.

3 Most members do not pay for both shares and savings on time i.e monthly.

LOANS

1 Most loans not being serviced i.e intersts not being paid and also repayments being defaulted resulting

roll over of most loans.

2 The loan register although updated up to date it is not very clear.
3 A payment by Ogaro of ksh.11000 on 19/01/18 not clearly indicating what it was paying for.
4 Some loans were not repaid even for asingle instalments such as loan of ksh.96000 for Opiyo,Ksh.55000 for
Kyalo and 40700 for Ogata.

CASH COLLECTIONS AND DEPOSITS

1 The use of collecton sheets is agood idea but most of the sheets cash collected not agreeing with what is on
bank statement e.g in Dec.2017 cash collected as per sheet was ksh.43300 only ksh.22300 wass banked.
2 Some banking/deposit slips missing from collection sheets.

GENERAL OBSERVATION
1 The operating income of the group declined from 142250 in year 2017 to 129860 in year 2019
2 The members attendance to group meetings still not satisfactory
3 Some members loans almost going beyond their savings and shares.
4 Most vouchers not signed by recepients of various monies e.g loans
5 Some vouchers not dated
6 Over 70% of fines and loan interests not paid only recovered at year end from members's savings.
7 As it stands the only source of income for the group are fines and loan interests

RECOMMENDATIONS
1 Any loans not repayed within the agreed period to be recovered in full from the members savings and if not
enough from his shares and the member to be suspended from getting a loan for a period of one month.
2 Action to be taken a gainst amember who fails to attend the group fot three consecutive meetings as per th
the group constitution and this to include amember who fails to contribute his monthly savings and shares
for the same period .This to start with Ronald Ogata who only contributed ksh.1000 for shares and ksh.1000 for savings
3 To avoid risking members money in form of non perfoming loans I recommend that all loans which were due

due for repayment by 30th October 2017 to be fully recovered from the respective members savings and shares.
4 A new loans register to be propely maintained starting this new financial period.
5 An official receipt to be issued for all monies received from members
6 The management in consultation with group members to look for a profitable investment to invest the
group funds lying in the bank account generating zero income
7 The treasurer to ensure that the cash collection sheet amounts agrees with actual cash deposited and that all banking
slips to be attached to each collection sheet to support the deposits.
8 I have allocated the payment by Ogaro ksh.8000 for loan repayment and balance of ksh.3000 for interest.
9 The management in consultaion with the members to innovate more income generating activities using the available
members funds.
10 Action to be takeen to fully recover Ogata's loan of of ksh 40700 froms his shares since already is having anegative savings
which risks losing the members funds.Also mechanisms should be put in place to ensure the other huge loans not being
servuved by members are recovered.These loans include that of Ogaro,Kyalo and Opiyo.

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