Insurance Institute of Zambia

Report of the Governing Council

for the period ended 31 December 2007

_____________________________________________________________________

The President presents the report and the financial statements for the year ended 31 December 2007.

Principal Activities

The principal activities of the Institute is to :

·         Do all such acts and things as are necessary to foster the advancement of the insurance profession,

·         Without prejudice to the generality of the above,

i)  maintain and improve the professional standards of insurance practitioners,

ii)  protect and assist the public in all matters relating to the practice of the   insurance profession,

iii) promote the international recognition of qualifications conferred by the institute,

Results

The deficit of income over expenditure for the period amounted to K1,258,500 (2006: deficit K2,415,150).

Council Members

The Governing Council members who held office during the year were:

Justine C. Kabwe                                                                 President

Captain Phiri                                                                        Vice President

Fackson Ngulube                                                                 Hon. Secretary

Maureen M. Besa                                                                                Vice Hon. Secretary

Benny Sakala                                                                      Treasurer

Marina Hall                                                                          Vice Treasurer

Timothy Chilufya                                                                               Executive Committee Member

Yona Shimishi                                                                      Executive Committee Member

Monica Mwewa                                                                   Executive Committee Member                                                       

Auditors

Emerging chartered Accountants & Consultancy Services,

P/B E891, Post Net 472, Manda Hill,

Lusaka.

By the order of the Governing Council Executive Committee.

Bankers: Zambia National Commercial Bank, Ndola Business Centre

Registered office: ZIBCT College, corner Broadway/Arusha Roads, Ndola

President

Ndola, Zambia

Insurance Institute of Zambia

Statement of responsibilities of the Governing Council

 _____________________________________________________________________

The Governing Council is responsible for preparing financial statements for each financial year which

gives a true and fair view of the state of affairs of the Institute and of the surplus or deficit and cashflows

 for that period.

In preparing these financial statements, the Council:

• Select suitable accounting policies and then apply them consistently,
• Make judgements and estimates that are reasonable and prudent,
• State whether applicable accounting standards have been followed; and

The Council is responsible for the maintenance of adequate accounting records which disclose with

reasonable accuracy at any time the financial position of the Institute. The Council is also responsible

 for safeguarding the assets of the Institute and hence for taking reasonable steps to detect fraud and

other irregularities.

In the opinion of the Council:

• the income and expenditure account is drawn up so as to give a true and fair view of the surplus
• of income over expenditure for the year ended 31 December 2007,
• the balance sheet is drawn up so as to give a true and fair view of the state of affairs of the club
• as at 31 December 2007,
• there are reasonable grounds to believe that the institute will be able to pay its debts as and
• when they fall due.

Accordingly, the financial statements set out on pages 4 to 12 were approved by members of the

Council on:……………………………….

Signed on behalf of the Governing Council by:

__________________

 President                    )                      

                                    )

                                    )       Governing Council

                                    )

__________________)

Treasurer

 _____________________________________________________________________

Emerging Chartered Accountants & Consultancy Services   ECACS

_____________________________________________________________________

 Emerging Chartered Accountants &  Consultancy Services, S

uite 2, Room 203 old ZANACO Head office, Cairo Road,       

 Post Net Box 472 P/B E891, Lusaka, Zambia.. Tel: 0

97-415215, 236204

Report of the auditors of the Governing Council of Insurance Institute of Zambia

We have audited the financial statements of the Insurance Institute of Zambia which comprise the balance sheet at 31 December 2007,

and the income statement, the statement of changes in cashflows for the year then ended, and the notes to the financial statements,

which include a summary of significant accounting policies and other explanatory notes set out on pages 7 to 8.

Respective responsibilities of Council members and auditors

The directors are responsible for the preparation and presentation of these financial statements on the basis of accounting described

in the accounting policies on page 10, for the shareholders and other interested parties. This responsibility includes designing,

 implementing and maintaining internal controls relevant to the preparation and presentation of financial statements that are free

 from material misstatements, whether due to fraud or error and selecting and applying appropriate accounting policies and making

accounting estimates that are reasonable in the circumstances.

Auditor’s responsibility

Our responsibility is to express our opinion on these financial statements based on our audit.

We conducted our audit in accordance with International Standards on Auditing issued by the International Federation of Accountants.

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

whether financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.

These procedures selected depend on the auditor’s judgment, including the assessment of risk of material misstatement of financial statements,

whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation

and presentation of 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 also includes evaluating the appropriateness

 of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall

presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.

Opinion

In our opinion, the financial statements have been prepared, in accordance with the basis of accounting policies on pages 7 to 8 and give

 the true and fair view of the institute’s affairs as at 31 December 2007 and of its deficit and cash flows for the year then ended.

Emerging Chartered Accountants

and Consultancy Services

Nelson M. Musonda

Managing Partner & Consultant                      Date: ……………………………

___________________________________________________________________________________

Auditing, Accountancy, Taxation and Business Consultancy

 Insurance Institute of Zambia

Income and Expenditure

for the period ended 31 December 2007

_____________________________________________________________________

Insurance Institute of Zambia

Balance Sheet

as at 31 December 2007

_____________________________________________________________________

The financial statements on pages were approved by the Governing Council on:  ………………………………..

and were signed on its behalf by:

__________________

 President                    )

                                    )

                                    )     Governing Council         

                                    )

__________________)

 Treasurer

Insurance Institute of Zambia

Cash flow Statement

for the period ended 31 December 2007

_____________________________________________________________________

Insurance Institute of Zambia

Notes to financial statements

for the period ended 31 December 2007

_____________________________________________________________________

Regulatory Framework

The Insurance Institute of Zambia was established under the Societies’ Act.

Accounting Policies

Financial statements are prepared on the historical cost convention and comply with operative International Accounting Standards.

The financial statements have been prepared on the going concern basis, which assume that the Institute will continue in

 operation for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course

 of business.

Income

Income is derived from fees, subscriptions from other sources.

Foreign currency translation

Transactions in foreign currencies during the year are converted into Zambian kwacha at rates ruling at the transaction dates.

 The resulting differences from conversion are dealt with in the income and expenditure account in the year in which they arise.

Insurance Institute of Zambia

Notes to financial statements

for the period ended 31 December 2006

____________________________________________________________________

Inventory

Inventory is valued at lower of cost and net realizable value. In determining the cost, the first in, first out method is used and

includes all costs incurred in bringing the inventory to its present location and condition.

Cash and cash equivalents

For the purpose of the cash flow statement, cash and cash equivalents comprise cash in hand and deposits held at call with banks.

Subscriptions and fees

The current year’s subscriptions and fees due but not yet paid at the time of preparation of financial statements are recognized

in the accounts as receivables. Subscriptions and fees relating to the subsequent year but received in the current year are

 treated as deferred income.

1. Principal Activity

          The principal activity of the Institute is to act as a regulatory body for insurance practitioners.

2. Cash at hand and bank                        2007                                    2006

Reconciled bank balance                1,034,150                               672,650

Insurance Institute of Zambia

Notes to financial statements

for the period ended 31 December 2007

_____________________________________________________________________

7. Taxation

      The Institute is exempt from paying tax under the Income Tax Act Section 5 (i).

8. Capital Commitments

There were no capital commitments approved by the Governing Council at 31 December 2007.

9. Contingent liabilities

      There were no contingent liabilities at 31 December 2007.

Insurance Institute of Zambia

Detailed Income and Expenditure Account

for the year period 31 December 2007

_____________________________________________________________________

 End of Report.