STATEMENT
OF MANAGEMENT'S RESPONSIBILITY FOR FINANCIAL STATEMENTS
The management
of Light Dream Organization is responsible for the preparation and fair
presentation of the strengthened financial statements for the years ended
December 31, 2014; 2013 and 2012, including the additional components attached
therein, in accordance with LiDO Financial Reporting Standards. This
responsibility includes designing and implementing internal controls relevant
to the preparation and fair presentation of the strengthened 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 reasonable in the circumstances.
The Audit
Committee, as authorized by the Board, reviews and approves the strengthened
financial statements and submits the same to the stockholders.
The Secretary and
auditor Mr. Yusuph Mtobela and his Team appointed by the stockholders for the
period December 31, 2014; 2013 and 2012, respectively, have examined the
financial statements of the company in accordance with Tanzanian Standards on
Auditing, and in their reports to the stockholders, have expressed their
opinion on the fairness of presentation upon completion of such examination.
Board of Directors
The Board of Director
of the Light Dream Organization (LiDO) submits herewith the financial report of
the organization, accompanied by statements and supported by schedule. Of these,
statements I, II and III; Notes 1 up to 4 are presented in line with the
formats agreed upon by the Board of Directors as a step towards harmonizing the
accounts of Organization system. The financial report provides the financial
results of LiDO activities in 2012; 2013 and 2014. Highlights are summarized in
the following paragraphs.
YUSUPH
DL. MTOBELA GRACE
NTWALE
Secretary Treasurer
NEATSON
NIXON SUNZI
Chairman
Person and CEO
AUDITORS’
TEAM REPORT
We have audited the accompanying
statement of financial position of light dream organization (LiDO); (a not-for-profit
and nongovernmental organization) as of December 31, 2012-2013 & 2014, and
the related statements of activities, cash flows, and functional expenses for
the year then ended. These financial statements are the responsibility of Light
Dream Organization’s management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance
with Tanzanian generally accepted auditing standards. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
Opinion
In our opinion, the financial statements
referred to above present fairly, in all material respects, the financial
position of LiDO as of December 31, 2012, and the changes in its net assets and
its cash flows for the year then ended in conformity with Tanzanian generally accepted accounting principles.
NEATSON
NIXON SUNZI
Chairman
Person and CEO
Income
1. LiDO
income in the Tanzania 2012-2013 & 2014 totaled Tshs. 13,957,050 million.
Virtually all Members of both built-up, Donors and developing partners
contributed to LiDO in the period 2012-2013 & 2014. Income comprised Tshs.
2,562,595/= for regular resources, Tshs.9, 998,750 for Board of Directors Donors
and other resources (regular) and Tshs. 1,395,705/= for other resources (emergency).
The breakdown of LiDO
income by source is as follows:
72
per cent from fund-raising campaigns, the sale of Servies cards and individual
donations (Board of directors, Donors)
18
per cent from developing partners; and
10
per cent from miscellaneous sources, including interest and exchange rate
revaluation of assets and liabilities.
Expenditures
2. LiDO expenditures in 2012-2013 & 2014 are Tzs.
15,235,030. This amount consisted of Tzs.6, 621,235/= for programmes operation
from Donors and regular resources, Tshs.3, 562,595/= for programmes operation
from other resources (regular), and Tshs.437, 405/= for other resources
(emergency). The remaining expenditures of Tshs.4, 613,795/= were for
management and administration.
Donations in kind
3. Donations in kind valued by Local donors at
Tshs.335, 000 were delivered by LiDO to projects during the period 2012-2013
& 2014. These deliveries are not reflected in the financial accounts of
LiDO, although they are handled through the administrative structures of the
organization.
Grants
4. Grants
are related to programmes/projects approved by the LiDO Board
of Directors and Donors are entered in the financial accounts of LiDO as income
and expenditures. These funds are used mainly to cover the cost of workshop days
on behalf of well-wishers and Donors. In the period August 26 up to 31 December
2013, LiDO received cash of Tshs.6 million for these means. Disbursements and
obligations Totaled Tzs. 6,000,000/=.
Cash holdings
5.
LiDO has total cash of Tshs.414, 000 (which
includes the unspent balances from grants and contributions in the amount of Tzs.
11,235,030/=. An amount of Tzs.81, 206/= is held in Organization Central
Account at Equity bank taken as cash on hand amounts.
Approved Programs
6.
During
the Year of 2012-2013-2014, the Board of Directors approved the amount about of
Tzs. 2, 278,400 for women and
Youth projects preparation with which LiDO cooperates, as well as for district
and regional projects. This total includes Tzs 1,100, 000/= in conservation programs
to be funded from national and international donors and regular resources and
Tzs 900,000/= for special projects that the Board approved as worthy of support
and that will be financed by pledges of supplementary funds made in 2012-2013-2014.
The total also includes Tzs. 278,400 /= for
projects to be financed by pledges for emergency relief and rehabilitation.
6.
I.
STATEMENT OF
FINANCIAL POSITION
Year ended December 31
|
||
ASSETS 2013
-2014
2012
|
||
Assets
|
||
Cash
|
Tzs.1,748,000
|
Tzs. 894,000
|
Pledges
and contracts receivable
|
6,131,235
|
490,000
|
Prepaid
expenses
|
662,595
|
275,000
|
Property
and equipment, less accumulated depreciation of 41%
|
3,487,800
|
877,800
|
Other
Assets - security deposit
|
329,000
|
169,800
|
Total Assets
|
12,358,630
|
2,876,400
|
LIABILITIES AND NET ASSETS
|
||
Liability
|
||
Accounts
payable and accrued expenses
|
Tzs.2,233,295
|
Tzs. 992,470
|
Advances
|
2,010,000
|
841,470
|
Total Liabilities
|
4,243,295
|
1,833,940
|
Net
Assets:
|
||
Unrestricted
|
Tzs.1,265,000
|
Tzs.550,000
|
Temporarily
restricted
|
6,850,335
|
492,460
|
Total Net
Assets
|
8,115,335
|
1,042,460
|
Total
Liabilities and Net Assets
|
12,358,630
|
2,876,400
|
The
accompanying notes are an integral part of these financial statements.
II.
STATEMENT OF
ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31
2013-2014
|
2012
|
|||||
Unrestricted
|
Temporarily Restricted
|
Total
|
Unrestricted
|
Temporarily Restricted
|
Total
|
|
Revenue
and support:
|
In Tzs.
|
In Tzs.
|
In Tzs.
|
In Tshs.
|
In Tzs.
|
In Tzs.
|
Member
fees and contributions
|
694,295
|
1,150,500
|
1,844,795
|
550,000
|
1,728,400
|
2,278,400
|
Subsidies
from Government
|
-
|
-
|
-
|
-
|
-
|
-
|
Local Granting
Organization
|
-
|
6,000,000
|
6,000,000
|
-
|
-
|
-
|
Economic
investment
|
-
|
-
|
-
|
-
|
-
|
|
Users
fees and Fundraising event
|
775,550
|
2,717,050
|
3,492,600
|
598,000
|
598,000
|
|
Private
Sector Support
|
-
|
-
|
-
|
-
|
-
|
-
|
Community
and Public Support
|
-
|
-
|
-
|
-
|
-
|
-
|
Grand
from foreign Development Partners
|
-
|
-
|
-
|
-
|
-
|
-
|
Satisfaction
of program restrictions
|
-
|
1,021,235
|
1,021,235
|
-
|
-
|
-
|
Total
revenue and support
|
855,845
|
10,488,785
|
12,358,630
|
550,000
|
2,326,400
|
2,876,400
|
Programs Expenses:
|
||||||
Careers through entrepreneurship
|
3,488,785
|
3,488,785
|
153,000
|
490,000
|
643,000
|
|
Kuendesha Mabaraza ya Rasimu ya Katiba
|
224,000
|
5,776,000
|
6,000,000
|
-
|
-
|
-
|
Total Programs expenses
|
224,000
|
9,264,785
|
10,488,785
|
153,000
|
490,000
|
643,000
|
Supporting Services
|
||||||
Administrative
|
1,246,565
|
-
|
1,246,565
|
675,280
|
_
|
675,280
|
General
Fundraising
|
658,000
|
-
|
658,000
|
698,000
|
1,316,120
|
2,014,120
|
Total expenses
|
2,128,565
|
-
|
11,393,350
|
1,526,280
|
_
|
3,332,400
|
Change in net assets
|
1,272,720
|
9,264,785
|
7,992,065
|
976,280
|
1,806,120
|
829,840
|
Net
assets - beginning of year
|
607,720
|
115,550
|
723,270
|
139,940
|
72,680
|
212,620
|
Net
assets - end of year
|
Tzs.(1,880,440)
|
Tzs.9,380,335
|
Tzs. 8,715,335
|
Tzs.(836,340)
|
Tzs.1,878,800
|
Tzs. 1,042,460
|
The accompanying notes are an
integral part of these financial statements.
SCHEDULE
OF FUNCTIONAL EXPENSES
FOR THE YEAR ENDED December 31, 2012
& 2013-2014
Program/Project Services
|
Supporting Services
|
Largest expense
Category
|
||||
Careers through entrepreneurship Services
|
Kuendesha Mabaraza ya Rasimu ya Katiba project
|
Program Expenses
|
Management and
General
|
Fundraising
|
Total
|
|
Salaries
|
Tzs.753,600
|
Tzs 0.00-
|
Tzs.753,600
|
Tzs.780,000
|
Tzs.520,000
|
Tzs.2,053,600
|
Payroll
taxes and
Employee
benefits
|
251,225
|
-
|
251,225
|
260,000
|
260,120
|
771,345
|
Rent
(Venue/office)
|
250,000
|
600,000
|
850,000
|
360,000
|
150,000
|
1,360,000
|
Utilities
|
200,000
|
100,000
|
300,000
|
69,037
|
80,000
|
449,037
|
Office
cleaning
|
-
|
-
|
180,000
|
20,000
|
20,000
|
|
Consultants
|
367,885
|
700,000
|
1,067,885
|
30,000
|
20,000
|
1,117,885
|
Accountants
|
390,000
|
-
|
390,000
|
110,000
|
120,000
|
620,000
|
Office
expense
|
140,000
|
60,000
|
200,000
|
|||
Supplies
|
286,000
|
224,000
|
510,000
|
34,000
|
26,000
|
570,000
|
Telephone
|
100,000
|
20,000
|
120,000
|
30,000
|
158,400
|
308,400
|
Postage
and messengers
|
120,000
|
40,000
|
160,000
|
30,000
|
25,650
|
215,650
|
Photocopying
|
70,000
|
30,000
|
100,000
|
20,000
|
196,000
|
316,000
|
Equipment
leasing
|
200,000
|
-
|
200,000
|
25,000
|
223,189
|
448,189
|
Local
transportation
|
150,000
|
20,000
|
170,000
|
40,000
|
125,000
|
335,000
|
Meals and
entertainment
|
1000,000
|
2,650,000
|
3,650,000
|
60,000
|
87,900
|
3,797,900
|
Seminars
and training
|
1380,000
|
100,000
|
1480,000
|
50,000
|
130,000
|
1660,000
|
Fees
|
-
|
-
|
-
|
100,000
|
-
|
100,000
|
Data
processing
|
150,000
|
450,000
|
600,000
|
40,000
|
30,000
|
670,000
|
Dues and
subscriptions
|
160,000
|
186,000
|
346,000
|
27,850
|
170,000
|
543,850
|
Advertising,
promotion, website
|
150,000
|
880,000
|
1,030,000
|
50,000
|
170,000
|
1,250,000
|
Depreciation
|
35,000
|
25,000
|
60,000
|
18,000
|
22,000
|
100,000
|
Miscellaneous
|
157,900
|
-
|
157,900
|
81,238
|
99,861
|
338,999
|
Total
expenses
|
Tzs.6,171,610
|
Tzs.6,025,000
|
Tzs.12,190,610
|
Tzs.2,499,125
|
Tzs.2,694,120
|
Tzs.17,325,855
|
III.
STATEMENT OF
CASH FLOWS
FOR
THE YEAR ENDED December 31, 2012/2013-2014
Cash Flows From Operating
Activities:
|
2013-2014
|
2012
|
Change in net assets
|
7,992,065
|
829,840
|
Adjustments
to reconcile change in net assets to net cash provided in operating
activities Depreciation
|
54,250
|
45,750
|
Increase
in pledges receivable
|
(131,235)
|
(99,000)
|
Increase
in prepaid expenses
|
(220,865)
|
(91,666)
|
Increase
in security deposits
|
(43,865)
|
(37,733)
|
Increase
in accounts payable and accrued expenses
|
1,595,211
|
708,907
|
Decrease
in advances
|
(174,783)
|
(73,171)
|
Net cash
provided by operating activities
|
9,070,778
|
946,927
|
Cash
Flows From Investing Activities:
Capital
expenditures
|
8,216,778
|
189,915
|
Net cash
used in investing activities
|
(8,216,778)
|
(189,915)
|
Net
increase in cash
|
854,000
|
757,012
|
Cash - beginning of year
|
894,000
|
136,988
|
Cash -
end of year
|
Tzs.
1,748,000
|
Tzs
.894,000
|
Financial Statement Important Notes:
The
depreciation of the organization’s fixed assets was between Tzs.18, 000 to 35,
000 during the year 2012 and 2013;
There
aren’t any balloon debt payments due in the near future
There
aren’t any important leases set to expire in the next two years; Includes a
description of the organization and information about accounting policies,
fixed assets and debt, temporarily and permanently restricted net assets,
related party transactions, commitments and contingencies, and subsequent
events
Note #1 – Organization
Organization and Tax Status:
Light Dream Organization
(LiDO) being formed
with 15 founder members has bearded on 09th April 2012 and gets it
registration on 31st august 2012, quietly it received its
certificate No: 00NGO/00005789 under section 12(2) of act No. 24 of 2002; The United
Republic of Tanzania Non Governmental Organization Act. The Organization has
registered and organized under the laws of
the State of New York. The Organization is exempt from Federal income tax
purpose under Section 501(c) (3) of the Internal Revenue Code and is classified
as a private foundation. On 10/22/2013, Light Dream Organization has been
registered with Tanzania Revenue Authority as taxpayer for some project
intended to generate income but not restrict.
Financial Statement Presentation:
The
financial statements have been prepared on the accrual basis of accounting in
accordance with generally accepted accounting principles. The classification of
an organization's net assets and its support, revenues and expenses is based on
the existence or absence of donor-imposed restrictions. It requires that the
amounts for each of three classes of net assets - permanently restricted,
temporarily restricted, and unrestricted - be displayed in a statement of
financial position and that the amounts of change in each of those classes of
net assets be displayed in a statement of activities.
These three classes
are defined as follows:
Permanently Restricted - Net assets resulting from
contributions and other inflows of assets whose use by the organization is
limited by donor-imposed stipulations that neither expire by passage of time
nor can be fulfilled or otherwise removed by actions of the Organization.
Temporarily Restricted - Net assets resulting from
contributions and other inflows of assets whose use by the organization is
limited by donor-imposed stipulations that either expire by passage of time or
can be fulfilled and removed by actions of the Organization pursuant to those
stipulations. When such stipulations end or are fulfilled, such temporarily
restricted net assets are reclassified to unrestricted net assets and reported
in the statement of activities and changes in net assets. However, if a
restriction is fulfilled in the same time period in which the contribution is
received, the Organization reports the support as unrestricted.
Unrestricted -
The part of net assets that is neither permanently nor temporarily restricted
by donor-imposed stipulations.
Significant Accounting Policies:
Pledges Receivable
The
Organization uses the allowance method to determine uncollectible pledges
receivable. The allowance is based on historical experience and management’s
analysis of the current status of amounts receivable.
No allowance for doubtful accounts has been
made in the accompanying financial statements since all receivables were
considered collectible.
Support and Revenue expectation
The Organization
receives its support primarily from individuals, members, contracts, private
institutions, economic investment / professional services and consultancy, government/government
agencies and grants/donations from other well enhanced NGOs worldwide.
Functional Allocation of Expenses
The costs of
providing the various programs and other activities have been summarized on a
functional basis in the statement of activities. Accordingly, certain costs
have been allocated among the programs and supporting services benefited.
Estimates
The preparation of
financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
Note
#2 – Property and Equipment:
Expenditures for property and equipment
are capitalized where title rests with the Organization, regardless of the
funding source. Where title does not vest with the Organization, these expenditures
are expensed.
Property and equipment are being
depreciated using the straight-line method based on their estimated useful
lives.
Property and equipment, as of December
31, 2012 and 2013-2014, consisted of the following:
Equipment
|
Tzs.1, 142,787
|
1-2 Years
|
Furniture
and fixtures
|
432,608
|
1-2 Years
|
1,575,405
|
||
Less:
accumulated depreciation
|
(645,916)
|
|
Tzs.929,489
|
||
Depreciation expense was Tzs.54,
250 to 45,750 for the year ended December 31, 2012 /2013-2014
Note #3 – Summary of Grants/Contracts
Funding:
Light
Dream Organization (LiDO) was primarily funded through the following activities
government agencies grants as NGOs for the period January1, 2012 to December
31, 2013-2014:
Recognized
Funding Source Revenue
Organization Members’
|
|
Board of
Directors
|
Tzs. 2, 278,400/-
|
All other
members
|
Tzs. 2, 866,030/-
|
Government Agencies
|
|
Foundation
for Civil Society
|
Tzs. 6, 000,000/-
|
Professional Services And
Consultancy Activities
|
|
Craftsmen Entrepreneur Training and Services fees
|
Tzs. 4,090,600
|
Total Grants and Contracts
|
Tzs. 15, 235,030
|
The
disbursements received from government agencies are subject to audit by those
agencies.
Note #4 – Commitments and
Contingencies:
Lease Commitments and Rental
Expense:
The
Organization is obligated under non-cancellable operating leases for office
space and for various equipment.
As
of December 31, 2012/2013, future minimum lease commitments under non-cancellable
operating leases are as follows:
Years
ended December 31,
2014+1
|
Tshs.1,800,000
|
|
2015+2
|
1,760,000
|
|
2016+3
|
1,840,000
|
|
2017+4
|
1,900,000
|
|
2018+5
|
1,920,000
|
|
Thereafter
|
9,828,800
|
|
Tshs.19,048,800
|
Rent expense under operating leases for the year
ended December 31, 2012/13 was Tshs.1, 360,000/=
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