Umsobomvu Youth Fund Annual Report 2006 - Nyda

statement ofresponsibilitiesand approvalincomestatementsfor the year ended31 March 2006The Directors of the Umsobomvu Youth Fund (“the Fund”)are required by the South African Companies Act, 61 of 1973,as amended and Public Finance Management Act, 1 of 1999as amended (“PFMA”), to ensure that the Fund keeps fulland proper records of its financial affairs to prepare annualfinancial statements, which fairly present the state of affairs ofthe Fund, its financial results, and its financial position at theend of the year in terms of International Financial ReportingStandards (IFRS).The Group annual financial statements are the responsibilityof the Directors. The external auditors are responsiblefor independently auditing and reporting on the financialstatements. Their report on the annual financial statementsappears on page 41.In preparing these financial statements the Directors arerequired to:• Select suitable accounting policies and apply themconsistently;• Make judgements and estimates that are reasonable andprudent;• State whether applicable accounting standards have beenfollowed; and• Prepare the annual financial statements on the going concernbasis unless it is inappropriate to assume that the Companywill continue in business for the foreseeable future.The Group annual financial statements and annual financialstatements of the Fund have been prepared in terms ofInternational Financial Reporting Standards and the CompaniesAct in South Africa. These annual financial statements are basedon appropriate accounting policies, supported by reasonableand prudent judgements and estimates and are prepared on thegoing concern basis. The Directors have every reason to believethat the Group will be a going concern in the year ahead.The Directors are of the opinion, based on the information andassurance given by Management and internal auditors, that theinternal accounting controls are adequate to ensure that thefinancial records may be relied upon for preparing the Groupannual financial statements and accountability for assets andliabilities is maintained.The Audit Committee has reviewed the effectiveness of theinternal controls and nothing has come to their attention, otherthan the significant matters referred to in the Directors’ reportand reported to the Executive Authority, to indicate that therehas been any material breakdown in the functioning of thesecontrols, procedures and systems during the year under reviewand considers the systems appropriate. The Audit Committeehas reviewed the Group annual financial statements and annualfinancial statements of the Fund and has recommended theirapproval to the Board of Directors.In the opinion of the Directors, based on the informationavailable to date, the Company and Group annual financialstatements fairly present the financial position of the Fund asat 31 March 2006, and the results of its operations and cashflow information for the year then ended in conformity withInternational Financial Reporting Standards and in the mannerrequired by the Companies Act, 61 of 1973 and Public FinanceManagement Act, 1 of 1999.The Group annual financial statements and annual financialstatements of the Fund for the year ended 31 March 2006, setout on page 42 to 81, have been approved by the Board ofDirectors on 31 July 2006.The Directors are of the opinion that they have discharged theirresponsibility for keeping fair accounting records that disclose,with reasonable accuracy, the financial position of the Fund.Adv Richard MolokoChairmanMr Malose KekanaChief Executive OfficerUmsobomvu Youth Fund 2006 Financial Statements38