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,
The deficit of income over expenditure for the period amounted to K1,258,500 (2006: deficit K2,415,150).
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
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,
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,
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
__________________)
____________________________________________________________________
Emerging Chartered Accountants & Consultancy Services ECACS
Emerging Chartered Accountants & Consultancy Services, Suite 2, Room 203 old ZANACO Head office, Cairo Road, Post Net Box 472 P/B E891, Lusaka, Zambia.. Tel: 097-415215, 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
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.
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.
Managing Partner & Consultant Date: ……………………………
___________________________________________________________________________________
Income and Expenditure for the period ended 31 December 2007
Notes
2007
2006
K
Subscriptions
2,225,000
7,270,000
Ticket sales
12,550,000
24,453,300
Donations
2,655,000
-
Sale of journals
820,000
_________
__________
18,250,000
_31,723,300
Administration expenses
App I
(19,508,500)
(34,138,450)
_(1,258,500)
_(2,415,150)
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:
Cashflows from operating activities
Deficit
6
(1,258,500)
(2,415,150)
Adjusted for: Depreciation
_________-
Cashflows from operating activities before working capital movements
Increase in inventories
Decrease in receivables
3
1,720,000
960,000
Decrease in payables
5
_(100,000)
_(900,000)
Net cashflow out from operating activities
_361,500
(2,355,150)
Net cash in flows
361,500
Net cash movements at the beginning of the year
672,650
3,027,800
Net cash movements at the end of the year
4
_1,034,150
___672,650
Represented by:
Bank balances
1,034,150
Cash balances
__1,034,150
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.
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.
Principal Activity
The principal activity of the Institute is to act as a regulatory body for insurance
practitioners.
Reconciled bank balance 1,034,150 672,650
Notes to financial statements
3. Receivables
Outstanding fees and subscriptions
_1,410,000
3,130,000
4. Bank and Cash balances
Reconciles bank balance
Cash in hand
________
_672,650
5. Payables
Refunds outstanding
100,000
Audit Fees
3,000,000
__3,000,000
_3,100,000
6. Accumulated fund
At 1 January
702,650
3,117,800
(Deficit)/surplus for the year
At 31 December
_(555,850)
__702,650
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.
Detailed Income and Expenditure Account for the year period 31 December 2007
Membership Subscriptions
Ticket Sales
Total Income
31,723,300
Expenditure
Bank Charges
674,500
1,280,000
Registration fees
Telephone expenses
Travel expenses
2,150,000
3,412,800
Hire of conference hall
4,674,000
7,200,000
Accommodation
950,000
6,680,000
Annual xxxxxxxxxx
1,493,000
Stationery
230,000
233,000
Fuel expenses
2,140,000
1,400,000
Advertising
1.046,000
1,800,000
272,650
Refunds
Transport expenses
1,310,000
316,000
260,000
Postage
Bad debts write off
1,620,000
4,090,000
Membership cards
265,000
Best DIS awards
500,000
19,508,500
34,138,450
Deficit of income over expenditure
ERA OF PROFESSIONALISM
The Insurance Institute of Zambia (IIZA) has developed a structured professional framework to provide a self satisfying career in today's demanding, increasing competitive insurance world.
IIZA exist to serve its members professional needs through personal development. Members are well informed through journals published quarterly rich with industry news.
Professionalism in an ever changing industry
Standards have never been more vital in the insurance industry than now –to both the individual and employers.
Why now?
¨ Promote professional growth.
¨ Professional recognition at the highest level.
¨ Promote local and international presence or professionals with unmatched expertise in various fields:
MEMBERSHIP STATUS is:
¨ Evidence to employers and the industry of high personal commitment and expertise improving:
* prospects of promotion
* Career progress
* Self-fulfilment
¨ Success at the highest level provides recognition of the technical know-how and experience gained by holders;
¨ It is just a mark of high professional standing.
¨ Professional edge with raised profile;
¨ Confers designatory recognition to use in your day-today working life.
¨ Confers professional recognition by employers and colleagues.
¨ Adds value for employers by demonstrating commitment to excellence and quality service.
¨ Recognition by the public.
¨ Enhances an appetite for knowledge and understanding.
¨ Confirms skill, competence and confidence in the way you do things.
A mark of Excellence.
¨ Are you pursuing insurance courses either locally or internationally and not working?
Apply for student membership Status and eligible to use ‘SIIZA’ Designation against your name.
¨ Are you working in the insurance industry and you feel have acquired necessary experience?
Apply for ‘MIIZA’ status.
¨ Are you a Diploma holder in Insurance or related Subject and have worked for more than three years? Apply for ‘AIIZA’ membership status.
¨ Have you been previously elected as an Associate of either CII, III, IISA, SOA, APM, or any Institute and have worked for more than three years post-Associate qualification? Apply for ‘FIIZA’ Status, the Highest status worldwide.
How to be One of Them…
Simple, just:
Step 1: Complete the Membership Application Form and pay the appropriate Fee.
Step 2: Complete the Professional Membership Designations Application Form attaching the certified copy (ies) of qualifications attained
N.B Certification must be done by either an ACII, or FCII (UK). Attach a summary of Work undertaken and responsibilities indicating the employers.
Step 3: Pay the appropriate Conferment Fee.
Step 4 Submit to the Honorary Secretary or the President..
Step 5: Upon acceptance, a Certificate will be issued as evidence of your status subject to renew yearly.
What is Continuous Professional Development (CPD)
It is a planned acquisition of knowledge, experience and skill to develop personal qualities appropriate to execute professional and technical duties.
WHY UNDERTAKE (CPD)?
¨ Keep abreast with developments in a fast changing industry.
¨ Widens your experience.
HOW?
¨ You identify activities that provides technical update.
¨ That enable development as means of meeting both own needs and employers.
BENEFITS TO EMPLOYERS:
¨ Simple and immediate transfer of techniques to make an impact in the teams and their work.
¨ Provide different approach to problem solving that encourages and inspires your staff.
¨ Understanding the leadership strength of your organisation and how to make the best of them.
¨ Provides necessary tools and techniques to challenging positive behaviour.
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NOTICE TO ALL MEMBERS
We thank those who managed to submit articles for issue in the third issue of our Journal, please encourage others to do the same. Be part of History in making by submitting your Articles to:
Mr Godfrey Ngosa
The Editor
Insurance Institute of Zambia Magazine
Elite Insurance Brokers Limited
6th Floor Tazara House
P O Box 30699
Lusaka or electronically to ngosagm@yahoo.com
Articles to be contributed should relate to the following:
1. Industry related stories
v Policy & Regulatory development
v Company news
v International /Regional round ups
2. Comment pieces
3. Feature Style Content
4. Institute News
v Events
v Meetings
v Membership
To allow the ownership of this magazine we invoke your creativity by asking you to suggest names
To be given to this Magazine from which the institute will pick one for publication.
Fackson Ngulube
Honorary Secretary
“Insurance the Silent Pillar, the Peace of Mind”
nsurance Courses
1. National Certificate in Insurance (NCI)Entry Requirements: (i) Grade twelve school certificate with five credits or better, English inclusive.Subjects Covered 1. The Legal and Regulatory 2. Underwriting Processes 3. Claims Handling Processes 4. Motor Products 5. Enterpreneurship
One Elective from the following: 1. General Insurance Business
2. Household Insurance Products
Duration: twelve (12) months
2. National Advanced Certificate in Insurance (NACI) Entry requirements: (i) CoP (ii) cii (iii) NCI (iv) Business Diplomas and Degrees for direct entry Subject Covered: 1. Insurance Practice and Regulation 2. Business Practice 3. Insurance Law 4. Commercial Insurance Practice 5. Long Term Business
One elective from the following: 1. Underwriting Management 2. Claims Management
3. Insurance Broking
3. National Diploma in Insurance (NDI) Entry requirements: (i) National Advanced Certificate in Insurance or (ii) DII or (iii) CIP Subject Covered:
1. Risk, Regulation and Capital Adequacy 2. Business and Economics 3. Life Assurance 4. Liability Insurance 5. Motor Insurance
6. Principles of Reinsurance
Duration: twelve (12) month
