Umsobomvu Youth Fund Annual Report 2006 - Nyda

notes to thefinancialstatementsfor the year ended31 March 2006GROUPCOMPANY2006 2005 2006 2005Rand Rand Rand Rand15 Outside shareholders’ loansZ Ntombela 50 000 – – –Mvuma Investments 500 000 – – –Outside shareholders’ loans are unsecured,interest free and have no fixed terms ofrepayment. These loans have beensubordinated in favour of other creditors.16 Accounts payable550 000 – – –Trade creditors and accruals 27 993 679 9 954 895 27 502 903 9 954 895Loan debtors accruals 11 – 1 611 750 – 1 611 750Leasehold allowances 12 876 375 1 132 875 876 375 1 132 87528 870 054 12 699 520 28 379 278 12 699 52017 ProvisionsGROUP AND COMPANYStaff External InternalLeave incentive audit auditpay bonuses fees fees TotalRand Rand Rand Rand Rand31 March 2006Balance at beginning of year 865 961 4 095 254 900 600 684 000 6 545 815Prior year under/(over) provision – 30 214 313 500 (115 121) 205 793Utilisation of prior year provision (865 961) (4 125 468) (1 214 100) (568 879) (6 751 608)Current year adjustments 447 326 – – – 447 326Current year provision 1 511 885 4 548 651 1 528 740 827 163 8 416 439Balance at end of year 1 959 211 4 548 651 1 528 740 827 163 8 863 765Umsobomvu Youth Fund 2006 Financial Statements31 March 2005Balance at beginning of year 478 675 2 231 364 570 000 550 620 3 920 659Prior year under provision – 512 886 246 240 – 759 126Utilisation of prior year provision (478 675) (2 834 250) (816 240) (550 620) (4 679 785)Current year provision 865 961 4 095 254 900 600 684 000 6 545 815Balance at end of year 865 961 4 095 254 900 600 684 000 6 545 815It is expected that the resulting outflow of the economic benefits from the provisions will materialise in thefirst quarter of the new financial year except for leave pay which is expected to materialise as and whenleave is taken. The adjustment during year under review in respect of leave relates to leave forfeited bystaff but adjusted back after case-by-case consideration by Management.11 Loan debtors accruals are raised in respect of loan debtors who met the suspensive conditions of the loan agreements at year-end, butto whom the loans had not been disbursed.12 Leasehold allowance has been received from the lessor in respect of improvements made at the UYF head offices in Midrand(Umsobomvu House), and is amortised over the lease term against capitalised leasehold expenses.70