PK7MASTER -COPY

TANA RIVER LIFE FOUNDATION

ANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2OO9

Tana River Life FoundationFinancial statementsForthe vearended 31 December2009CONTENTS

Trust lnformation

Statement of trustees' responsibilities

Report of the independent auditors

Financial statements:

lncome and exPenditure account

Balance sheet

Cash flow statement

Significant accounting Policies

Notes to the financial statements

PAGE

1-2

5

4

8-9

10-12

Tana River Life FoundationFinancial statementsFor the vear ended 31 December 2008TRUST INFORMATION

Tana River Life Foundation (TRLF) is a Charitable Trust set up by Gabriel Teo Kian Chong on

13 December 2005 in Mombasa, Kenya. Gabriel has been living and working in Tana Delta District,

Kenya since 1995. The Foundation was set up to continue the work started by Gabriel in a more

organised and comprehensive manner. TRLF was registered as a Non govermental organisation(NGO) in Kenya on 6 December2Q07. (Reg. No. OP.2181051120071044014836).

1 MISSTON : lts mission is to assist the marginalised attain self reliance so thatthey have the freedom and ability to make meaningful choices in theirlives.

2. COVERAGE TRLF operates from ldsowe of Garsen Division in Tana Delta District,

Malindi District and Lamu District, in the Coast Province of Kenya.

4.

TRUSTEES

NATURE OFACTIVITIES

BENEFICIARIES

6 PROGRAMMES

GabrielTeo Kian Chong (Malaysian)Simeon Galugalu Buya (KenYan)

Benedecto Manase Gwiyo (KenYan)

Activities are mainly directed towards the creation and expansion ofeducational opportunities, sustainable agricultural development, and

the promotion of women and youth formation. The following activitiesare included:

a) To sponsor and provide educational opportunities at all levels ofeducation;

b) To support new or existing educational institutions;c) To identify, Initiate and support viable educational projects and;d) To identify, initiate and support viable income generating projects.

The main beneficiaries of TRLF programmes are members of the

marginalised communities in Tana Delta, Tana River, Malindi and

Lamu Districts of the Coast Province of Kenya. These include all AIDS

orphans, children of subsistence farmers and nomadic pastoralists,

and single parent families without any regular source of income.

Tana River Life Foundation (TRLF) currently runs/supports the

following programmes.

a) Education Support Scheme at Primary, Secondary, Vocational

and Tertiary levels;b) Garsen High School (Reg GP/tu339212005);

c) Emmaus Youth Association (Formerly Mvoni Youth Group)

(Reg. No. TDD/GARI{G I 481 8).

d) Dziavye Women's Community Based Organisation(Reg. TRD/G ARI CBA 127 7 0)

e) Youth formation Programme.f) Medical and Emergencies fundg) Work and saving Programmei) Youth Agricultural Programmeh) Study aids assistance.

Tana River Life FoundationFinancial statementsFor the year ended 31 December 2008TRUST TNFORMAT]ON (CONTTNUED)

7. BANKERS : CFC Stanbic Bank Limited: Mombasa

8 INDEPENDENT AUDITORS : PKF Kenya: Certified Public Accountants: P. O. Box 90553 - 80100: Mombasa

L POSTAL ADDRESS : Tana River Life Foundation: P.O.3ox41730 - 80100: Mombasa - Kenya

10. WEBSITE

1,I. SUPPORT

wvwv.ta na riverl ifefou n dation. org

Tana River Life Foundation (TRLF) activities are funded by donations from private individuals and institutionsfrom both Malaysia and Singapore.

lnstitutions that have supported the Tana River Life Foundation (TRLF) Programmes since 2007 include thefollowing:

a) JovinasTrust,Malaysiab) Holy lnnocents High School,Singaporec) St.Theresa'sConvent,Singapored) Crescent Girls Secondary School, Singapore (Staff Support Group)e) Wesley Methodist Church, Singaporef1 Women's Society for Christian Services, Methodist church in SingaporeS) Accenture Singaporeh) Parish of St."Antony's Church, Singaporei) Fu Chow Methodist Church Teens, Singaporej) Brandt Asia, Singaporek) Palate sensations, Singaporel) Wesley Methodist Church, Melakam) Church of lmmaculate Conception Parents Catechists Association, J. Bahru,

Malaysia.n) Catholic High School lnteract club, Petaling Jaya, Malaysiao) Catholic Diocese of Melaka Johor (MAJODI) Malaysiap) Gemalto (S) Pte Ltd

Tana River Life FoundationFinancial statementsForthe vear ended 31 December 2009STATCTVIEruT OF TRUSTEES RESPONSIBILITIES

The Trust deed requires the trustees to prepare financial statements which give a true and fair view of the

state of affairs of the Trust as at the end of the financial year and of the surplus for the year. lt also requires

the trustees to ensure that the Trust maintains proper accounting records which disclose with reasonable

accuracy the financial position of the Trust. The trustees are also responsible for safeguarding the assets

of the Trust.

The trustees accept the responsibility for the financial statements which have been prepared using

appropriate accounting policies supported by reasonable and prudent judgements and estimates.

The Trustees are of the opinion that the financial statements give a true and fair view of the state of financial

affairs of the Trust as at 31 December 2009 and of its surplus for the year then ended. The trustees further

confirm the accuracy and completeness of the accounting records maintained by the Trust which have

been relied upon in the preparation of the financial statements, as well as on the adequacy of the systems

of internal financial controls.

Nothing has come to the attention of the trustees to indicate that the Trust will not remain a going concern

for at least the next twelve months from the date of this statement'

Approved by the trustee, on 5* f}1 o/ 2010 and signed on its behatf by:

TRUSTEE

PKF KenyaCertified Public Accountants PK7

REPORT OF THE INDEPENDENT AUDITORSTO THE TRUSTEES OF TANA RIVER LIFE FOUNDATION

Report on the financial statements

We have audited the accompanying financial statements set out on pages 5 lo 12 of Tana River Life Foundation,

which comprise the balance sheet as at 31 December 2009 and the income and expenditure account and cash

flow statement for the year then ended, and a summary of significant accounting policies and other explanatory

notes.

Trustees' responsibility for the financial statementsThe trustees are responsible for the preparation and fair presentation of these financial statements. This

responsibility includes: designing, implementing and maintaining internal controls relevant to the preparation and

fair presentation of financial statements that are free from material misstatement, whether due to fraud or error;

selecting and applying appropriate accounting policies; and making accounting estimates that are reasonablein the circumstances.

Auditor's responsibilityOur responsibility is to express an opinion on these financial statements based on our audit. Those standards

require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance

whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor's judgement, including the assessment ofthe risks of material misstatement of the financial statements, whether due to fraud or error. ln making thoserisk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation

of the financial statements in order to design audit procedures that are appropriate in the circumstances, but

not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit alsoincludes evaluating the appr:opriateness of accounting policies used and the reasonableness of accountingestimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our

audit opinion.

Opinionln our opinion, the accompaning financial statements give a true and fair view of the state of financial affairs of the

the trust as at 3'1 December 2009 and of its income and expenditure and cash flows for the year then ended inaccordance with lnternational Financial Reporting Standards.

Based on our audit, we rePort that:

(i) we have obtained all the information and explanations which to the best of our knowledge and belief were

necessary for the purposes of our audit;(ii) in our opinion proper books of account have been kept by the trust, so far as appears from our

examination of those books; and(iii) the trust's balance sheet and income and expenditure account are in agreement with the books of accounts.

nYKf Wu

Certified Public AccounthntsMombasa L/

r-- (--r"zuo

't1612010

Tel +254 41 2226422t3,2315846197 ,2314007 I Mobile +254 733 563668. +254 724 563668

Fax +254 41 2224377,2226965 I Email:pkfmsa@ke.pkfea com ',^"rrnv pkfea com

pKF Kenya i 3rd Floor, Jubilee lnsurance Building, Mol Avenue P O Box 90553, Mombasa 80100 I Kenya

4pa{ners: Diamond Jamal, Suniimal Mitra"*, Harish Shah, Rajan Shah, Atul Shah. Es-: (:::'-:- A pesh Vadher Piyush Shah, Ashvln Shah* Ketan Shah*,

Joseph Gichuki, David Kabeberi, Ritesh Mirchandani** ("British, *lndianl

T.e PKF lnternational Associalion is an associaiion of legally independent firms

Tana River Life FoundationFinancial statementsFor the vear ended 31 December 2009INCOME AND EXPENDITURE ACCOUNT

Donations received

Expenses as per trust objectives

lndirect expenses

Surplus for the year

Notes

1

2

J

4

For the year ended2009Shs

22,652,215

(17,968,809)

(4,607,788)

75,618

31 December2008Shs

18,197,645

(8,049,362)

(2,518,840)

___l_92e,413_

The significant accounting policies on pages 8 to 9 and the notes to the financial statements on pages

10 to 12 form an integral part of these financial statements.

Report of the independent auditors - page 4.

Tana River Life FoundationFinancial statementsFor the vear ended 31 December 2009BALANCE SHEET

CAPITAL EMPLOYED

Accumulated fund

REPRESENTED BY

Non-current assetsProperty, plant and equipment

Current assetsCash and cash equivalentsReceivables

As at 31 December2009 2008

Notes Shs Shs

4 11,581,288 11,505,670

5 5,945,539 4,296,448

6 6,006,892 7,395,808115,900

6,122,792 7,395,808

Current liabilitiesPayables

Net current assets

487,043 186,586

5,635,749 7,209,222

__l_1_,9fl;q9_ _i1,qq9,62!_

The financial statements on pages 5 to 12 were approved for issue by the Board of Trustees onS+1" pfty 2010 and were signed on its behalf by:

-_/ \. -t>\-\-e\\'/ TRUSTEETRUSTEE

The significant accouriting policies on pages 8 to 9 and the notes to the financial statements on pages

10 to 12 form an integral part of these financial statements.

Report of the independent auditors - page 4.

Tana River Life FoundationFinancial statementsForthe vear ended 31 December 2009

CASH FLOW STATEMENT

For the Year ended 31 December2009 2008

Notes Shs Shs

1,213,676 8,128,092Operating activitiesCash generated from oPerations

lnvesting activitiesCash paid for purchase of property, plant and equipment

Net cash used in investing activities

(Decrease)/increase in cash and cash equivalents

Movement in cash and cash equivalentsAt start of year(Decrease)iincrease

At end of year

(2,602,s92)

(2,602,592)

__i1!gggq_

7,395,808(1,388,916)

*___qpgqIg?_

(1,544,079)

(1 ,544,079)

____qEq,0G_

811,7956,584,013

__1,399,899_

The significant accounting policies on pages 8 to 9 and the notes to the financial statements on pages 10 to 12

form an integral part of these financial statements'

Report of the independent auditors - page 4.

For the vear ended 31 December 2009StCrutrtCRttT ACCOUNTING POLICIES

Tana River Life FoundationFinancial sfafemenfs

The principal accounting policies adopted in the preparation of these financial statements are set out below.

These policies have been consistently applied to all the years presented, unless otherwise stated.

a) Basis of preParation

The financial statements are prepared on the historical cost basis and in accordance with lnternational

Financial RePorting Standards.

b) lncome recognition

Donations received are accounted for on a receipt basis. Due to the nature of such income the accruals

basis is not approPriate.

c) Property, plant and equiPment

All property, plant and equipment is initially recorded at cost and thereafter stated at historical cost less

depreciation. Historical cost comprises expenditure initially incurred to bring the asset to its location

and condition ready for its Intended use'

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as

appropriate, only when it is probable thai future economic benefits associated with the item will flow to

the company and the cost can be reliably measured. The carrying amount of the replaced part is

derecognised. All other repairs and maintenance are charged to the income and expenditure account

financial period in which they are incurred'

property, plant and equipment received by way of gifts or donations are capitalised at a reasonable

estimate of their value to the mission. The corresponding credit is taken to the capital fund.

Depreciation is calculated on the reducing balance basis to write down the cost of each asset, to itsresidual value over its estimated useful life using the following annual rates:

BusOffice equipment

"Computer equiPment

Rate %25

12.52n

Gains and losses on disposal of property, plant and equipment are determined by reference to their

carrying amount and are taken into account in determining deficiUsurplus for the year.

Where the carrying amount of an asset is greater than its estimated recoverable amount, it is

immediately written down to its recoverable amount'

Capital expenditure projects undertaken during the course of the year and not completed as at the

balance sheet date are classified as work in progress. The total amounts is transferred to and

amalgamated with the appropriate asset category in the year of completion. capital work in progress

is not depreciated while classified as such.

Tana River Life FoundationFinancial statementsFor the vear ended 31 December 2009SIGT.' IFICANT RCCOU T'ITING POLICIES (CONTIN U ED)

Translation of foreign currencies

Transactions in foreign currencies during the year are converted into Kenya Shillings (functional currency),

at rates ruling at the transaction dates. Assets and liabilities at the balance sheet date which are

expressed in foreign currencies are translated into Kenya Shillings at rates ruling at that date' The

resulting differences from conversion and translation are dealt with in the income and expenditure

account in the period in which they arise.

Financial liabilities

Financial liabilities are recognised initially at fair value and subsequently measured at amortised cost,

using the effective interest rate method.

d)

Tana River Life FoundationFinancial statementsFor the vear ended 31 December 2009NOTES TO THE FINANCIAL STATEMENTS

Donations received

Jovinas Trust (Malaysia) - adminstration expensesJovinas Trust (Malaysia) - GHS laborotoryCatholic Diocese of Melaka - Johor (Majodi)Private individual donorsContact Global LtdWesley Methodist MelakaWesley Methodist SingaporeHIHS visitorsHoly lnnocents SchoolSt. Teresa's ConventGemalto PTE LtdWomen's Society for Christian Service, SingaporeAnonymous foundationFriends from Accenture (Singapore)Leap internationalBank interestLocal contribution

Expenses as per trust objectives

Agriculture projectDziavye CBOGarsen High School AidSchool Holiday programmes (meetings/remedial tuitions)Mvoni Youth House - MombasaMvoni Youth House - Eldoret and MpeketoniMvoni Youth House - NairobiMvoni Youth House - ldsowePrimary school programmeSecondary school programmeDistrict Education EnhancementMedical and Emergencies fundEmmaus Youth AssociationYouth formation prQgrammeTertiary and Vocational education programmeStudy aid expenses

lndirect expenses

Air fareAudit feesBank chargesElectricityGenerator expensesBus running expensesLocal travelling expensesOffice expensesProfessional feesStaff salariesTelephoneRepairs and maintenanceOffice rentDepreoation on equipment (Note 5)

Foreign exchange loss

For the year ended 31 December2009 2008

'18,197,645

Shs

1,841,5741,431,7701,077,292

14,344,527515,478106 263779,722

'123,658

409,872763,654

52,678

165,6901,040 037

Shs

1,414,220

972,40212,137,696

'109,684

7A5JOz126,07262,83289,759

101,478

1,842,000

oio,aoo

22,652,215

973,999772,773

5,266,0691 '13,650

481,245141,159500,494403 01 1

83,5252,475,4071,269,113

164 06871,500

1,588,9263,132,003

531,867

___tzpqq,899_

1 35,'l4B'199,346

74,65486,1 4050,364

1,331,603510,980220,784

31,000153,650103,238103,06596,000

953,501558,315

444,361322,212

1,136,43784,950

360 249228,554316,058230,785106,708

1,8-18,281

t,osz,aeg1,230,287

712,601

___qge,99a

1Q1,141'186 58647,66553,014

161 ,456505,783294,828178,532

10,213'130 70066,778

173,495'1 10,000498,649

104,607,788 2,518,840

Tana River Life FoundationFinancial statementsFor the vear ended 31 December 2009

Accumulated fund

At start of yearSurplus for the year

At end of year

Property, plant and equipment

Year ended 31 December 2009

2009Shs

'11,505,670

75,618

2008Shs

3,876,2277,629,443

Gapital workin progress

Shs

2,380,794284,952

2,665,746

BusShs

2,191 ,6002,069,701

4,261,301

958,825

Computerequipment

Shs

134,466

1 1,581 ,288

Officeequipment

Shs

754,730247,939

1 1,505,670

TotalShs

5,461,5902,602,9e2

8,064,182

At start of yearAdditions

At end of year

DepreciationAt start of yearCharge for the year

At end of year

Net book value

134,466

68,578

1,002,669

137,739108,1 16

1,165,142953,501825,619 19,766

1,784,444 88,344 245,855 2,118,643

2,665,746 2,476,857 46,122 756.814:Capital work in progress relates to construction of a school not yetdate.

5,945,539

completed by the balance sheet

ln the opinion of the trustees there is no impairment of property, plant and equipment.

Year ended 31 December 2008

Capital work Computerin progress Bus equipment

Shs Shs Shs

1,096,789 2,191 ,600 134,4661 .284.005

2,38A,794 2,191,600 134,466

Officeequipment

Shs

494,656260,074

TotalShs

3,917,5111.544,079

At start of yearAdditions

At end of year

DepreciationAt staft of yearCharge for the year

At end of period

Net book value

754,730 5,461,590

547,900 40,340410,925 28,238

78,25359,486

137,739

666,493498,649

958,825

2,380,794 1 ,232,775

68,578

65,888

1,165,142

616,991 4,296,448

11

Tana River Life FoundationFinancial statementsFor the Vear ended 31 December 2009NOTES TO THE FTNANCIAL STATEMENTS (CONTINUED)

6. Gash and cash equivalents

Cash and bank balanceFixed deposit

For the purposes of the cash flow statement, cash and cashequivalents comprise the above balances.

7. Payables

Other payables

ln the opinion of trustees, the carrying amounts of payables

approximate to their fair value

8. Cash generated from operations

Reconciliation of surplus for the year to cashgenerated from operations:

Surplus for the year

Adjustments for:Depreciation (Note 5)Changes in working capital

- receivables- payables

Cash generated from operations

9. Tax

The Trust is in the process of applying for tax exemption.

10. Presentation currency

These financial statements are presented in Kenya Shillings (Shs).

75,618 7,629,443

953,501 498,649

(115,e00)300,457

____1_213,675_ ____9f28,0e2_

2009Shs

2008Shs

841,202 7,395,8085,165,690

6,006,892 7,395,808

487 ,043 186,586

12