Republic of Namibia AUDIT REPORT ON THE ACCOUNTS OF THE MOTOR VEHICLE ACCIDENTS FUND FOR THE FINANCIAL YEAR ENDED 31 MARCH 2005 2005 Published by authority Price (Vat excluded): N$ 26.21 Report no: 363 Office of the Auditor-General
REPUBLIC OF NAMIBIA TO THE HONOURABLE SPEAKER OF THE NATIONAL ASSEMBLY I have the honour to submit herewith my report on the accounts of the Motor Vehicle Accidents Fund for the financial year ended 31 March 2005, in terms of Article 127(2) of the Namibian Constitution. The report is transmitted to the Honourable Minister of Finance in terms of Section 27(1) of the State Finance Act, 1991 (Act 31 of 1991) to be laid upon the Table of the National Assembly in terms of Section 27(4) of the Act. WINDHOEK, December 2005 JUNIAS ETUNA KANDJEKE AUDITOR-GENERA
REPORT of the AUDITOR-GENERAL on the ACCOUNTS of the MOTOR VEHICLE ACCIDENTS FUND for the financial year ended 31 March 2005 1. INTRODUCTION The accounts of the Motor Vehicle Accidents Fund (the Fund) for the year ended 31 March 2005 are being reported on in accordance with the provisions set out in the State Finance Act, 1991 (Act 31 of 1991) and the Motor Vehicle Accidents Fund Act, 2001 (Act 4 of 2001) herein after called the Act. The firm BDO Spencer Steward Chartered Accountants has been appointed by the Auditor-General under the provisions of Section 26(2) of the State Finance Act, 1991, to audit the accounts of the Fund on his behalf and under his supervision. Figures in the report are rounded off to the nearest Namibia dollar. 2. ESTABLISHMENT The Motor Vehicle Accidents Fund was established in terms of Section 2 of the Act. The Act provides for the establishment, management and administration of the Fund, payment of compensation to victims of motor vehicle accidents and incidental matters. Section 18(2) of the Act provides that any claim or obligation which arose before the commencement of the Act, be dealt with in accordance with the repealed law, but any payment due to the claimant under the repealed law (Act No. 30 of 1990) shall be paid out of the Fund. 3. FINANCIAL STATEMENTS The Fund's statements of account referred to in Section 4(3) of the Act and other statements in respect of the financial year were audited in terms of Section 4(4) of the Act and are filed in the Office of the Auditor-General. Those published in this report are: Annexure A: Annexure B: Annexure C: Annexure D: Annexure E: Annexure F: Report of the directors Balance sheet Income and expenditure account Statement of changes in equity Cash flow statement Notes to the financial statements 4. SCOPE OF THE AUDIT The Accounting Officer of the Fund is responsible for the preparation of the financial statements and for ensuring the regularity of the financial transactions. It is the responsibility of the Auditor-General to form an independent opinion, based on the audit, on those statements and on the regularity of the financial transactions included in them and to report his opinion to the National Assembly. The audit as carried out by the said firm included: a) examination on a test basis of evidence relevant to the amounts, disclosure and regularity of financial transactions included in the financial statements, b) assessment of the significant estimates and judgements made by the Accounting Officer of the Fund in the preparation of the financial statements and of whether the accounting policies are appropriate to the Fund's circumstances, consistently applied and adequately disclosed, and 1
c) evaluation of the overall adequacy of the presentation of information in the financial statements. The audit was planned and performed so as to obtain all the information and explanations considered necessary to provide sufficient evidence to give reasonable assurance that: the financial statements are free from material misstatement, whether caused by error, fraud or other irregularity; in all material respects, the expenditure and income have been applied to the purposes intended, and the financial transactions conform to the authorities, which govern them. 5. AUDIT OBSERVATIONS 5.1 Accounting systems and control Accounting systems and business structures are currently being reviewed by selected individuals and firms. The Fund is undergoing a transformation process as part of its restructuring programme. 5.2 Investments made by the Fund No Ministerial approval was sought. During the year, the Fund made long term investments amounting to N$ 15 000 000 without prior approval from the Minister of Finance as required in terms of Section 3(2) of the Motor Vehicle Accident Fund Act, 2001. 5.3 Claims and solvency of the Fund The Fund had a significant backlog in the capturing of claims both settled and outstanding claims. As at the time of audit, the Fund had unrecorded claim files counting to eleven thousand. Casuals have been employed to speed up the process of recording of all claims on the system. Due to this fact, completeness of the outstanding claims could not be confirmed. No actuarial valuation was done as at the time of audit pending the clearance of the backlog, hence the auditors could not establish the solvency of the Fund and the accuracy, existence and completeness of the provision for outstanding claims as at balance sheet date. 5.4 VAT balances The Fund is showing a refundable VAT balance of N$ 271 012 as at year end. Part of this amount (N$ 170 889) is in respect of the November 2004 and January 2005 return periods which have not yet been received subsequent to year end. According to the results of the reasonability tests, VAT input was understated by approximately N$ 305 898 and no explanation in this regard could be availed during the audit. Owing to this fact, the auditors could not ascertain the recoverability and accuracy of the VAT balances shown in the Fund s records. 5.5 Reinsurance income The auditors could not verify reinsurance income amounting to N$ 387 467 to satisfy themselves regarding the completeness of this income. They were therefore unable to express an opinion on this income. 2
5.6 Leave pay provision The leave pay records could not reflect the correct information regarding the leave days as they were not updated with leave days taken during the current year. Therefore, the auditors could not verify the accuracy and completeness of the leave pay provision amounting to N$ 224 436. 5.7 Improper segregation of duties During the year under review, there was no proper segregation of duties, thus incompatible functions of recording and approval were being performed by the same individuals. The payroll function is run by the accountant who also updates the leave days taken despite the presence of a human resources manager. Before the recruitment of the accountant in January 2005, the finance manager performed most of the functions himself, namely preparation and checking of reconciliations. 5.8 Retrenchments costs The Fund incurred retrenchment costs amounting to N$ 3 270 496 in total, part of which (N$ 279 268) could not be verified due to unavailability of information. The auditors could not confirm whether associated taxes were accurately calculated and properly accounted for. Furthermore, their reconciliation of the retrenchment costs as disclosed in the general ledger compared with the summary of retrenchment payments made, revealed that the general ledger is overstated by N$ 218 183, and no explanation could be provided to account for this difference. 5.9 Fixed assets Completeness Fixed assets are not serially numbered, and as a result, the auditors could not trace the fixed assets selected to the fixed asset register, because they could not distinguish one asset from the other. Therefore, they were unable to satisfy themselves as to whether all the fixed assets are recorded in the fixed asset register. 5.10 Going concern The Fund is facing serious cash flow problems due to the excessive claims paid in the 2003/2004 financial year, thus the Fund s assets are well below its liabilities even before considering the current year s actuarial valuation of claims which will only be done in October 2005. The Fund s going concern in the future is dependant on whether additional funding is secured from the Government. 6. ACKNOWLEDGEMENT The assistance and co-operation given by the staff of the Fund during the audit is appreciated. 3
7. QUALIFIED AUDIT OPINION The financial statements of the Motor Vehicle Accidents Fund for the financial year ended 31 March 2005 have been audited in accordance with the provisions of Section 25(1)(b) of the State Finance Act, 1991, read with Section 4(4)(a) of the Motor Vehicle Accidents Fund Act, 2001 (Act 4 of 2001). Except for the matters highlighted in the preceding paragraphs, 5.3 - Claims and solvency of the Fund, 5.4 - VAT balances, 5.5 - Reinsurance income, 5.6 - Leave pay provision, 5.8 - Retrenchment costs, 5.9 - Fixed assets and 5.10 - Going concern, in my opinion these financial statements fairly present the net assets of the Motor Vehicle Accidents Fund at 31 March 2005, its net costs of operations and its cash flows for the year then ended. WINDHOEK, December 2005 JUNIAS ETUNA KANDJEKE AUDITOR-GENERAL 4
ANNEXURE A MOTOR VEHICLE ACCIDENTS FUND ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2005 REPORT OF THE DIRECTORS The directors present their annual report, which forms part of the audited financial statements of the Fund for the year ended 31 March 2005. ACTIVITIES OF THE FUND The Fund has been established to pay compensation to a person who has suffered loss or damages as a result of a motor vehicle accident and incidental matters. STATE OF AFFAIRS AND FINANCIAL RESULTS The state of affairs and full details of financial results are dealt with in the annual financial statements and can be summarised as follows: 2005 2004 Fuel levy income 51 716 642 48 793 403 Interest income 2 680 610 812 209 Reinsurance recoveries 844 952 19 850 616 Claim expenses 3 611 310 37 727 614 Provision for claims and related expenditure - 549 708 377 Actual claims paid decreased by 90% showing major efforts by management to control claim payments. Analytical review of the Fund's operations and state of affairs The fuel levy rate remained constant at 0.067 per litre of petrol and diesel. Following the actuarial valuation performed during the previous year, provisions for claims and related expenditure were charged to income in that financial year, with the following effect: 2005 2004 Total assets - 30 939 910 Total liabilities - 550 156 404 Fund deficit - 519 216 494 Ratio - 0.06 : 1 6% Note: No figures for the current year period are shown as the actuarial valuation was not done at the time of audit. 5
ANNEXURE A MOTOR VEHICLE ACCIDENTS FUND ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2005 (continued) REPORT OF THE DIRECTORS Fuel sales in litres 2005 2004 Diesel 450 551 169 418 715 431 Petrol 321 315 275 317 436 608 771 866 444 736 152 039 Increase in litres sold 35 714 405 The increase in litres of fuel sold mainly contributed to the increase in fuel levies by 6% from the prior year seeing that the fuel levy rate remained unchanged from the prior year (N$ 0.067 per litre). CASH AND INVESTMENTS Surplus cash and part of investment returns invested at various financial institutions comprise: 2005 N$ Fixed deposits - 90 to 180 days 12 238 905 Call account investments 13 887 328 Total short-term cash investments 26 126 233 Overdraft facility - Current account (637 533) Cash on hand 2 500 Total cash and cash equivalents as per financial statements 25 491 200 Investments in Treasury bills, Internally Registered/Registered Government Stock 16 330 000 Total cash and investments 41 821 200 STAFF COSTS Staff costs increased by a wide margin of 203% mainly due to the staff retrenchments carried out in September 2004 as part of the restructuring programme and amounted to N$ 3 270 496. This reorganisation programme also entailed new organization structures and job evaluation processes which substantially contributed to the increase in the salaries component of 80 % from the prior year. 6
ANNEXURE A MOTOR VEHICLE ACCIDENTS FUND ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2005 (continued) REPORT OF THE DIRECTORS POST BALANCE SHEET EVENTS AND CONTINGENCIES On 25 April 2005, the Ministry of Mines and Energy reviewed the levy rates by 4 cents per litre, from 7 cents to 11 cents, effected as from 27 April 2005. DIRECTORATE The following directors continued to serve during the financial year under review: P. Amunyela (Chairman, Nam) T.N Shiimbi (Nam) C. Katjazengi (Nam) Dr. F.U. Kaura (Nam) Adv. D. Sauls (Nam) WINDHOEK September 2005 7
MOTOR VEHICLE ACCIDENTS FUND ANNEXURE B BALANCE SHEET AT 31 MARCH 2005 ASSETS Notes 2005 2004 Non-current assets 16 695 722 1 869 793 Investments 5 15 934 786 1 330 000 Property, plant and equipment 6 760 936 539 793 Current assets 35 410 156 29 070 117 Accounts receivable 7 9 523 741 9 188 404 Cash and cash equivalents 8 25 886 415 19 881 713 Total assets 52 105 878 30 939 910 EQUITY AND LIABILITIES Funds and reserves Accumulated (Deficit)/ Funds (Annexure D) (482 626 637) (519 216 494) Non-current liabilities Claim provisions and reserves 9 531 298 002 549 708 377 Current liabilities 3 434 513 448 027 Accounts payable 10 3 434 513 448 027 Total equity and liabilities 52 105 878 30 939 910 8
MOTOR VEHICLE ACCIDENTS FUND ANNEXURE C INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31 MARCH 2005 Notes 2005 2004 Income 55 663 834 69 463 503 Fuel levy revenue 51 716 642 48 793 403 Interest received 2 680 610 812 209 Reinsurance recoveries 844 952 19 850 616 Sundry income 421 630 7 275 Expenditure 19 073 977 45 162 001 Claims paid 12 3 611 310 37 727 614 General administrative expenses 12 14 000 295 4 470 619 Legal fees 12 1 462 372 1 896 684 Collection commission 12-1 067 084 NET SURPLUS/ (DEFICIT) FOR THE YEAR BEFORE ADJUSTMENTS 36 589 857 24 301 502 Change in accounting policy 4-549 708 377 NET SURPLUS/ (DEFICIT) FOR THE YEAR 36 589 857 (525 406 875) 9
MOTOR VEHICLE ACCIDENTS FUND ANNEXURE D STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 MARCH 2005 ACCUMULATED FUNDS 2005 2004 Balance at the beginning of the year (519 216 494) 6 190 381 Net surplus/ (deficit) for the year 36 589 857 (525 406 875) Balance at the end of the year (482 626 637) (519 216 494) 10
MOTOR VEHICLE ACCIDENTS FUND ANNEXURE E CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2005 CASH FLOW FROM OPERATING ACTIVITIES Notes 2005 2004 Cash receipts 52 647 887 67 610 311 Cash payments (34 353 846) (44 915 175) Cash generated/ (utilised) by operations 11 18 294 041 22 695 136 Investment income 2 2 679 817 738 125 Net cash flow from operating activities 20 973 858 23 433 261 CASH FLOW FROM INVESTING ACTIVITIES Acquisition of fixed assets 6 (364 370) (411 153) Acquisition of investments (14 604 786) (1 330 000) Net cash flow from investing activities (14 969 156) (1 741 153) Net increase/ (decrease) in cash and cash equivalents 6 004 702 21 692 108 Cash and cash equivalents at the beginning of the year 19 881 713 (1 810 395) Cash and cash equivalents at the end of the year 25 886 415 19 881 713 11
ANNEXURE F MOTOR VEHICLE ACCIDENTS FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2005 1. ACCOUNTING POLICIES 1.1 Basis of presentation The financial statements are prepared on the historical cost basis. The following are the principal accounting policies used by the Fund and are consistently applied (except as disclosed in note 1.2) in compliance with Namibian Statements of General Accepted Accounting Practice (GAAP). 1.2 Change in accounting policy The Fund changed its accounting policy with regard to the recognition of outstanding claims and related expenditure not settled in the 2003/2004 financial period. Provisions were based on an actuarial valuation carried out for that financial year. 1.3 Property, plant, equipment and depreciation Property, plant and equipment are stated at cost. Cost includes all costs directly attributable to bring the assets to working conditions for their intended use. Depreciation is recorded by a charge to income on a straight-line basis so as to write off the cost of the assets over their expected useful lives, as follows: Motor vehicles Office furniture & equipment Computer equipment 4 years 10 years 3 years Where the carrying amount of an asset is greater than its estimated recoverable amount, it is written down immediately to its recoverable amount and an impairment loss is recognised. Gains and losses on disposal of plant and equipment are determined by reference to their carrying amount and are taken into account in determining the operating surplus. 1.4 Cash and cash equivalents For purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held at call with banks, and a net bank overdraft. 1.5 Accounting for leases - where the Fund is the lessee Leases of assets under which all risks and benefits of ownership are effectively retained by the lessor are classified as operating leases. Payments made under operating leases are charged on a straight-line basis over the period of the lease. When an operating lease is terminated before the expiry of the lease period, any payment required to be made to the lessor by way of penalty is recognised as an expense in the period in which termination takes place. 12
MOTOR VEHICLE ACCIDENTS FUND ANNEXURE F NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2005 (continued) 1.6 Trade receivables Trade receivables are carried at anticipated realisable value. An estimate is made for doubtful receivables based on a review of all outstanding amounts at year-end. Bad debts are written off during the year in which they are identified. 1.7 Provisions Provisions are recognised when the Fund has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. Employee entitlements to annual and long-service leave are recognised when they accrue to employees. A provision is made for the estimated liability for annual leave and long-service leave as a result of services rendered by employees up to the balance sheet date. 1.8 Revenue recognition All revenue is accounted for on an accrual basis. 1.9 Financial instruments Financial instruments carried on the balance sheet include cash and cash equivalents, receivables, and trade creditors and investments. All the investments made by the Fund are classified as held to maturity financial instruments, as management has no intention to gain from short- term fluctuations in market rates. The investments are measured initially at cost and subsequently at amortized cost. 2. INVESTMENT INCOME 2005 2004 Interest received 2 680 610 812 209 Interest paid on short-term borrowings (793) (69 404) Interest on late payments - claims - (4 680) 2 679 817 738 125 13
MOTOR VEHICLE ACCIDENTS FUND ANNEXURE F NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2005 (continued) 3. GENERAL ADMINISTRATIVE EXPENSES General administrative expenses include the following: 2005 2004 Depreciation of fixed assets 143 227 85 069 Auditors' remuneration - Current year - 42 407 - (Over) provision previous year (3 057) (3 985) Staff costs- payroll 4 896 678 2 764 091 Remuneration for managerial, technical, administrative or secretarial services other than to bona fide employees 2 936 755 352 607 4. CHANGE IN ACCOUNTING POLICY The Fund changed its accounting policy with respect to the treatment of claims and related expenditure in the 2003/04 financial year. The following amounts have been charged to income: Provision for outstanding claims - 404 903 890 Undertakings reserve - 31 431 398 Provision for claim related expenses - 12 147 117 Contingency reserve - 101 225 972-549 708 377 5. INVESTMENTS Internal Registered Government Stock at nominal value* 1 330 000 1 330 000 Registered Government Stock at nominal value ** 5 347 265 - Treasury Bills *** 9 257 521 - Total 15 934 786 1 330 000 *Matured on 15 April 2005, coupon rate of 12% and biannual interest payments. ** Maturing on 21 November 2010,coupon rate of 11.35 % *** Maturing on 10 November 2005,coupon rate of 8,20% No Ministerial approval for these investments as required by the Act was submitted for audit purposes. 14
MOTOR VEHICLE ACCIDENTS FUND ANNEXURE F NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2005 (continued) 6. PROPERTY, PLANT AND EQUIPMENT 31 March 2005 Motor vehicles Office equipment & furniture Computer equipment Total Opening net book value 1 395 658 144 134 539 793 Additions - 163 718 200 652 364 370 Depreciation - (55 151) (88 076) (143 227) Closing net book value 1 504 225 256 710 760 936 Cost 96 063 626 459 488 489 1 211 011 Accumulated depreciation ( 96 062) (122 234) (231 779) ( 450 075) Closing net book value 1 504 225 256 710 760 936 31 March 2004 Opening net book value 1 110 443 103 264 213 707 Additions - 316 241 94 912 411 153 Depreciation - ( 31 026) (54 042) ( 85 068) Closing net book value 1 395 658 144 134 539 793 Cost 96 063 462 741 287 836 846 640 Accumulated depreciation ( 96 062) ( 67 083) (143 702) (306 847) Closing net book value 1 395 658 144 134 539 793 15
MOTOR VEHICLE ACCIDENTS FUND ANNEXURE F NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2005 (continued) 7. ACCOUNTS RECEIVABLE 2005 2004 Fuel levies receivable 8 535 070 9 049 529 VAT Refundable 271 013 138 875 Interest receivable 717 658-8. CASH AND CASH EQUIVALENTS 9 523 741 9 188 404 Standard Bank of Namibia Ltd. - Current account (1 312 175) (2 530 494) - Call account 12 767 104 12 945 507-90 days deposit - 2 040 329 Bank Windhoek - 90 days deposit - 4 187 397 First National Bank 2 237 974 - Current account 674 642 - - 180 days deposit 6 622 119 - Nedbank - Call Account 1 120 225 - - 180 days deposit 5 616 786 1 000 000 IJG Money Market(Pty) Ltd 395 214 - Cash on hand 2 500 1 000 25 886 415 19 881 713 9. CLAIM PROVISIONS AND RESERVES Provision for outstanding claims 530 688 340 404 903 890 Undertakings reserve 609 662 31 431 398 Provision for claim related expenses - 12 147 117 Contingency reserve - 101 225 972 The provision for outstanding claims includes (1). Notified Outstanding Claims Reserve (NOCR) and (2). Claims Incurred but Not Reported Reserve (IBNR) 531 298 002 549 708 377 16
MOTOR VEHICLE ACCIDENTS FUND ANNEXURE F NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2005 (continued) 10. ACCOUNTS PAYABLE Notes 2005 2004 Accrued expenses 3 434 513 140 852 Provision for accrued expenses - 110 721 Claims authorised and payable - 196 454 11. CASH GENERATED/ (UTILISED) BY OPERATIONS 3 434 513 448 027 Net profit/ (deficit) for the year 36 589 857 (525 406 875) Adjusted for: Allocation to provisions/reserves (18 410 375) 549 708 377 Depreciation 6 143 227 85 068 Investment income 2 (2 679 817) (738 125) Changes in working capital 2 651 149 (953 309) Increase in accounts payable 2 986 486 87 674 (Increase) in accounts receivable (335 337) (1 040 983) Cash generated/ (utilised) by operations 18 294 041 22 695 136 12. FINANCIAL INSTRUMENTS Credit risk Potential concentration of credit risk consists primarily of short-term cash and cash equivalent investment and accounts receivable. The Fund deposits short-term cash surpluses and investments with major banks of high credit standing. Interest rate management As part of managing interest rate exposure, the Fund does not enter into any interest bearing borrowings, except for short-term overdraft facilities. 17
MOTOR VEHICLE ACCIDENTS FUND ANNEXURE F NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2005 (continued) 12. FINANCIAL INSTRUMENTS (continued) Liquidity risk The Fund has minimised its risk of illiquidity by ensuring that it has adequate banking facilities and reserve borrowing capacity. Fair value The directors are of the opinion that the carrying value of financial instruments approximates fair value. INCOME 2005 2004 Fuel levy revenue 51 716 642 48 793 403 Interest received 2 680 610 812 209 Reinsurance recoveries 844 952 19 850 616 Sundry income 421 630 7 275 Total income 55 663 834 69 463 503 EXPENDITURE Claims paid 3 611 310 37 727 614 Compensation payments 1 806 236 32 073 483 Hospital & medical fees 1 804 742 5 644 676 Other payments i.r.o. claims 332 9 455 18
MOTOR VEHICLE ACCIDENTS FUND ANNEXURE F NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2005 (continued) 2005 2004 General expenses 5 234 496 1 576 429 Advertising and promotions 367 004 88 318 Audit fees (3 057) 38 422 Bank charges 55 646 46 887 Cleaning expenses 28 881 13 734 Computer expenses 29 441 11 774 Consulting fees 2 772 703 352 607 Courier and postage 15 952 6 205 Depreciation 143 227 85 069 Donations 10 000 - Electricity and water 60 491 32 227 Entertainment expenses 16 271 568 Events & conferences 60 664 - General office expenses and allowances 29 582 41 904 Insurances and licenses 5 373 27 119 Interest on late payments - claims - 4 680 Interest on overdraft 793 69 404 Motor vehicle expenses 39 739 28 920 Professional fees 164 052 - Renovation costs 5 740 57 993 Rent - premises & other 401 177 391 444 Repairs & maintenance 129 230 11 825 Security costs 4 921 7 733 Stationery and printing 176 688 62 004 Study loans & internship 23 400 - Subscriptions 31 287 15 783 Sitting allowances 129 900 26 900 Telecommunication costs 230 139 142 968 Traveling and accommodation 305 252 11 941 Staff costs 8 765 799 2 894 190 Payroll costs 4 896 678 2 764 091 Training expenses 225 316 54 475 Traveling & subsistence allowances 53 198 7 310 Recruitment costs 61 068 - Retrenchment costs 3 270 496 - Leave pay provision 259 043 68 314 Legal fees 1 462 372 1 896 684 Collection commission - 1 067 084 Allocated to Claim Provisions and Reserves - 549 708 377 Total expenditure 19 073 977 594 870 378 NET SURPLUS/ (DEFICIT) FOR THE YEAR 36 589 857 (525 406 875) 19