Annual Report (2010) - Strathmore University

STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010StrathmoreU N I V E R S I T YSTRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010ANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 20101

STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 20102ANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 2010

STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010CONTENTSNOMANAGEMENT BOARD 4UNIVERSITY COUNCIL 5STATEMENT FROM THE CHAIRMAN 6VICE CHANCELLOR’S MESSAGE 7CORPORATE GOVERNANCE 8MANAGEMENT REPORT 9FINANCIAL PERFORMANCE 11COMMUNITY OUTREACH 16NEW SCHOOL AND PROGRAMMES 17SPORTS 17GENERAL INFORMATION 19UNIVERSITY COUNCIL’S REPORT 20STATEMENT OF UNIVERSITY COUNCIL’S RESPONSIBILITIES 21REPORT OF THE INDEPENDENT AUDITOR TO THE MEMBERS OF THE STRATHMORE UNIVERSITY 22FINANCIAL STATEMENTS: 23STATEMENT OF FINANCIAL POSITION 23STATEMENT OF CHANGES IN ACCUMULATED CAPITAL FUND 25STATEMENT OF CASH FLOWS 26NOTES 27-58StrathmoreU N I V E R S I T YANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 20103

STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010MANAGEMENTBOARDProf John Odhiambo, Vice ChancellorDr Charles Sotz, University SecretaryMs Stella Mwangi, AdministrationServices ManagerProf Izael Pereira Da Silva, DeputyVice Chacellor, Academic AffairsMr Daniel Kiilur, Head of SupportServices4ANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 2010

STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010UNIVERSITY COUNCILVice Chancellor Prof John Odhiambo Prof Terry Ryan, ChairmanMr Fernando AizpunMrs Zipporah WanderaMs Olga MarlinMs Belinda RegoMr Vitalis OjodeMr Martin KisuuMrs Bernadette MusundiANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 20105

STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010STATEMENT FROM CHAIRMAN OF THE UNIVERSITY COUNCILI wish to take this opportunity to most sincerely thank the members of theUniversity Council, the Management Board, University staff members,students and all the partners and friends of Strathmore for making year2010 a success. The year had its numerous and unique challenges suchthat without the effort and dedication of all the stake holders we would notnow be talking of success. I am therefore, confident that we will achieve evenmore and overcome future challenges with this great team.Education Sector OverviewThe demand for higher education in Kenya grew astronomically in the year2010. The number KCSE candidates who attained a mean grade of C+,which is the minimum to grade to enroll in a university increased by 16,086students to 97,134 from the 81,048 in 2009. In 2009, the number had risenby over 9,000 candidates from the roughly 72,000 students who attained C+and above in 2008.Indeed, the number who qualified for enrolment has been steadily risingfor the last ten years. In the year 2000, 40,497 candidates qualified tojoin universities. It is estimated that between 150,000 and 180,000 KCSEcandidates are expected to qualify to join universities in 2014 when the firstbeneficiaries of the Free Primary Education will sit their KCSE.Review of Major ActivitiesIn response to this growing demand for higher education, the Universitycompleted the Management Science Building which is part of theUniversity’s Phase III of physical development. The building is 4,000 squaremetres, and can house up to 1,200 students in its two lecture theatres and12 classrooms. The other facilities which are part of the Phase III will becompleted in the year 2011.The University has funded Phase III through various means which includeinternal funds, borrowing and benefactors. Three benefactors among otherscome to mind. These are Chase Bank which gave Kshs22 million for thelibrary in the Business School complex. Transcentury Ltd gave Kshs22.5million for the auditorium in the complex, and Toyota Kenya donated aRAV4 to be raffled, and it got rights to name a classroom in the complex.In the year, the University had 233 students benefiting from variousscholarships. I&M Bank gave Kshs14 million for 10 scholarships in the newSchool of Finance and Applied Economics while the Shah Ranmal RajaCharitable Trust (SRRCT) gave Kshs 6 million to sponsor four students inthe newly launched degrees of Bachelor of Science in Telecommunicationsand Bachelor of Science in Informatics in the Faculty of InformationTechnology.The University’s Community Outreach Program (COP) continued itsinvolvement in community initiatives. Notably, it came together with theUhuru Administration Police camp in the University’s neighborhoodto clean up Keri River that is part of the Nairobi River Basin. COP alsoorganized three work camps in Uref in Siaya County, and at Kariakomo andIkumbo in Tharaka-Nithi County. The camps were very well received by thecommunities.Financial PerformanceThe year 2010 financial performance continued to improve despite risingcost of University operations. The total income increased from Kshs 0.96billion in 2009 to Kshs 1.1 billion in 2010. The net surplus rose from a deficitof Kshs 57.5 million in 2009 to a surplus of Kshs 30 million in 2010. The netassets grew from Kshs 1.3 billion in 2009 to Kshs 1.9 billion in 2010. This,by any standard, is an impressive performance and will aid the universityin pursuit of its mission. Strathmore is a not for profit organization andcontinued good financial performance will help it achieve its mission oftransforming the society through all round education, excellence in research,teaching and offering scholarships to bright and needy students.Prof Terry RyanLooking forwardStrathmore will celebrate 50 years of existence in the year 2011. It has beenquite a journey from the A level college started in 1961, and the College ofAccountancy that started in 1966 to run with the A level college. In between,Strathmore started offering O level classes in 1977 and the primary schoolcommenced in 1987. Then came the merger with Kianda College in1993 which coincided with the move to the Madaraka campus. Otherdevelopments prior to the merger and the move were the beginning ofevening classes in accountancy in 1982, and the inception of the diplomain IT in 1991.Strathmore admitted its first degree students in conjunction with a localpublic university in 2001. It was given a Letter of Interim Authority in2002 to operate as a University. It graduated its first students in 2005, andwas awarded its Charter by the Government of Kenya to operate as a fulluniversity in 2008.As the University celebrates this golden jubilee, it hopes to complete theStudent Centre, the Business School complex, the Health Centre, and theSports Complex in the year 2011.The Strathmore University community is eternally grateful to God, and all itsbenefactors for bringing it to where it is todayProf Terry Ryan,6ANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 2010

STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010VICE CHANCELLOR’S MESSAGEThe year 2010 was momentous in the University. We witnessedimportant changes in the senior management of the University;and our ever illustrious sports teams, men and women,continued to conquer and scale new heights in the annals ofsports not just locally but also internationally.This is the year in which we launched a new and uniquelyhighly rated undergraduate degree programme called Bachelorof Business Science whose purpose is to educate high calibreprofessionals in the areas of actuarial science, financialeconomics and mathematical finance, for the financial servicesindustry in East Africa.The sixth cohort of bachelor’s degree students completed theirstudies in April 2010 and was admitted to their respectivedegrees at the 2010 graduation ceremony held on 25th June.The total number of undergraduate degrees awarded was309; 211 in BCOM and 98 in BBIT. At the same graduation theUniversity awarded its first PhD which was in management and39 master’s degrees; 10 in MCOM, 3 in MSc (CIS), 13 in MSc(IT) and 13 in MBA.I thank all our collaborators and benefactors, parents andsponsors with whom we are working closely to achieve thegrowth and progress that we continue to experience in theUniversity. I acknowledge with special gratitude the financialand other forms of contributions that have been made byour students, staff, parents, alumni and friends towards thefinancing of the nearly complete expansion project.Those generous men and women have left their markpermanently inscribed in the annals of the history of StrathmoreUniversity by contributing towards the building of a class roomor a lecture theatre or part of the student business developmentcentre or part of the health centre and so on. Thank you you allvery much for your generous contribution!Prof John OdhiamboVice ChancellorANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 20107

STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010CORPORATE GOVERNANCE STATEMENTStrathmore University is committed to good corporategovernance and has put in place structures and processes thatensure the smooth running of its operations. These structuresand processes are broadly captured in the University charterand the statutes. The two documents are available on theUniversity website. See: http://www.strathmore.edu/pdf/gazetted-charter-2008.pdf and http://www.strathmore.edu/pdf/strathmore_statutes.pdfThe ChancellorThe Prelate of Opus Dei is the Chancellor of the University asprescribed by section 10 of the Charter. The Chancellor mayexercise the powers and functions of his Office in person orthrough the Pro- Chancellor as prescribed by Section 10(2) ofthe Charter’The University CouncilThe University Council of Strathmore University is a bodyestablished as provided for by section 13 of the Charter, togovern the University and to assist in promoting its foundationaland educational aims.Management BoardThe Management Board is constituted according to section 15of the Charter and is entrusted with the day to day running andoverall coordination of the University activities.The Academic CouncilThe Academic Council is constituted according to section 16of the Charter, and is responsible to the University Counciland the Management Board for all matters concerned with theacademic functions and standards of the University.Internal ControlsThe University has put in place a strong internal control systemto safe guard the assets of the University. In addition, theUniversity council has engaged the services of Internal Auditorwhich is currently being outsourced. The current InternalAuditor is KPMG. The internal auditors reports directly to theUniversity Council.The Council approves internal audit plans for every year. Theaudits are carried out on a quarterly basis as per the approvedaudit plan and a follow up of issues raised in previous audit iscarried out by the auditors and reported back to the council. TheInternal Auditors carries out a risk based internal audit approachand give recommendations that will help the University comeup with appropriate controls to mitigate the risks. The variousissues reported to the council by the internal auditors aredistributed to the appropriate committees for follow up andimplementation.GOVERNANCE STRUCTURE OF THE UNIVERSITYUniversity CouncilCommittees ofUniversity CouncilManagement BoardCommittees of theManagement BoardAcademic CouncilCommittees ofAcademic CouncilFaculty ExecutiveCommitteeFaculty Boards(Faculties, Schools, Institutes)Departmental BoardsDepartmental ExecutiveCommittee8ANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 2010

STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010MANAGEMENT REPORTPhysical DevelopmentThe University completed the Management Science Building which is part of the University’s Phase III of physical development. Thebuilding is 4,000 square metres, and can house up to 1,200 students in its two lecture theatres and 12 classrooms. The other facilitieswhich are part of the Phase III will be completed in the year 2011.Environmental friendlyThe buildings will be the one of the first in Africa designed in adherence with the Leadership in Energy and Environmental Design(LEED) Green Building Rating System, a suite of standards for environmentally sustainable construction. The business schoolbuilding will be the first such designed business school in the world!LEED rating system addresses six major areas: sustainable sites, water efficiency, energy and atmosphere, materials and resources,indoor environmental quality, innovation and design process. The project uses innovation in its structures, natural lighting, watermanagement, infrastructure optimization, energy efficiency, heat recovery, IT Flexibility, indoor air quality, ease of access, heatisland effect reduction, and use of renewable materials.The buildings will have separate piping and storage system for water from the City Council, borehole and harvested rain water. Thisis to facilitate the treatment of water for the purpose it will be used for. For example, rain water will be used in toilets and for irrigation.Water wastage will be reduced by using infrared sensing water taps.To ensure quiet classrooms (even by Langata Road), a flies-free cafeteria, food odor control in the Student Center, ventilatedbathrooms, and 100% filtered fresh air supply, the buildings will utilise displacement ventilation, indirect and direct evaporativecooling, atrium water features, extractors and supply fans, and carbon dioxide monitoring.StructuresTo facilitate access, each building will have two elevators, and ramps for wheelchairs. They will also have wheelchair-ready bathroomsand spaces for wheelchairs in classrooms. The student centre will also have an escalator.Instead of making suspended floors the traditional way using concrete, the buildings’ floors will be made of hollow flat slabs. Theslabs don’t require beams for support, offer better seismic performance (withstand earthquake and tremors better). The slabs aremade from recycled plastic and their use will save the project about Kshs 18 million.The use of the slabs on the ground floor will result in a ventilated floor that does away with water proofing, and annuls pressure fromhumidity.The buildings have a flexible design. They will have non-permanent glass partitions in offices and meeting rooms. The atrium in thebusiness school building will also be used as an auditorium. Classrooms in the Management Science have been designed with doorat the front and back and differentiated light switches so that they can be sub-divided when need arises.The buildings will maximize on natural lighting by using glass walls, a glass atrium roof with automatic Roman Blinds, and glasspartitions. For safety purposes sun-blasted glass will be used.Renewable, recycled or recyclable materials will be used in the building. These include bamboo doors, U-Boot slab forms, Iglu floorforms and on-site rubble as hardcore filling supplement.ANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 20109

STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010MANAGEMENTSCIENCEBUILDING.10ANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 2010

STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010FINANCIAL PERFORMANCE ANALYSISSURPLUS2006 2007 2008 2009 2010Shs’000 Shs’000 Shs’000 Shs’000 Shs’000Revenue 482,149 670,050 815,768 911,739 1,118,142Operation Expenses (430,541) (530,672) (787,847) (961,288) (1,093,847)Finance income/Expenditure (17,922) (1,093) (33,900) (8,039) 5,822Surplus (deficit) 33,686 138,285 (5,979) (57,588) 30,118YearSurplus (deficit)Shs’0002006 33,6862007 138,2852008 (5,979)2009 (57,588)2010 30,118Surplus (Deficit)Surplus (deficit) Shs'000140,000120,000100,00080,00060,00040,00020,000-(20,000)2006 2007 2008 2009 2010(40,000)(60,000)YearANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 201011

STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010NET ASSETSYearNet AssetsShs’0002006 257,4782007 512,9482008 1,412,8702009 1,333,3312010 1,936,006Net Assets2,000,0001,800,0001,600,000Net Assets Shs'0001,400,0001,200,0001,000,000800,000600,000400,000200,000-2006 2007 2008 2009 2010Year12ANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 2010

STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010CURRENT SCHOLARSHIP STATISTICSDonorNumber of studentsSTRATHMORE UNIVERSITY - DEGREE PROGRAMMES 117STRATHMORE UNIVERSITY PROFESSIONAL SCHOLARSHIPS 36EUROPEAN UNION PROFESSIONAL SCHOLARSHIPS 34EABL SCHOLARSHIPS 24I & M SCHOLARSHIPS 10MCKINNEY RODGERS SCHOLARSHIPS 8SHAH RANMAL SCHOLARSHIPS 4233Scholarship StatisticScholarship StatisticsSTRATHMORE UNIVERSITY -DEGREE PROGRAMMESSTRATHMORE UNIVERSITYPROFESSIONALSCHOLARSHIPSEUROPEAN UNIONPROFESSIONALSCHOLARSHIPSEABL SCHOLARSHIPSI & M SCHOLARSHIPSMCKINNEY RODGERSSCHOLARSHIPSSHAH RANMALSCHOLARSHIPSANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 201013

STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010COMMUNITY OUTREACH7.2 Prisons ProjectStrathmore University (SU) Distance learning has been providing learning opportunities for inmates to broaden their horizons andto focus on a more positive life since 2004. And history was made in 2010 when Peter Kamau, an inmate on life sentence at NaivashaMaximum Security prison and Joseph Mutiria, a prison officer at Shimo-la-Tewa Prison successfully completed the Certified PublicAccountant (CPA) professional courses under the program. This initiative has motivated prisoners and more funds are being soughtto reach out to many more interested in-mates.Summary of students benefiting from the Prison’s projectThe list of students who have been registered with KASNEB and given Distance Learning study packs in 2010 is shown below.STUDENTS ENROLLEDName of Prison Number of Students2010 Naivasha 4Shimo La Tewa 3TOTAL 7Other Community Outreach Programme ActivitiesThe activities of the Community Outreach Programme (COP) increased significantly during the year, and so did the number ofstudents and staff participating in the activities.OTHER COP ACTIVITIES IN 2010PROJECT LOCATION SUPPORT GIVENAMOUNTRAISED1IkumboSec SchoolMeru Construction of Laboratory and Classroom CPA Initiative Donation of CPA revision books3,000,00050,0002 UREF Primary School Ugunja COP students and staff constructed two classrooms Paid for staff desks and cabinets SU is sponsoring their top needy student at AmbiraHigh School368,360154,00050,0003SHARIANI SecondarySchoolKilifi SU gave a CPA-Scholarship to their top student Motivational talks by SU staff members27,8004 St GABRIEL Sec School Kibera Construction of two form four classes Donation of general reading books511,1425Kibera Organisation ofPeople Living With AIDS(KOPLWA)Kibera Construction of 4 classrooms Donation of sleeping materials Construction of pit latrines555,000100,000132,5006 JOHN PAUL2 Sec School Kibera Annual 25 Scholarships for needy students Exchange program650,00045,0007 St Catherine Primary Meru8 Mutini Sec School Kitui Donation of Books Painting Motivational talks Project visits105,000135,00015,00015,0009 SOWETO Sec School Kibera Donation of Desks12 Namamanga Sec School Namanga Donation of Books14ANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 2010

STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 201015 KWETU Home of Peace Kiambu Foodstuffs Hosting volunteers Motivational talks by COP Members Revision of class work with COP Members SU gave scholarships to 2 high school student17,00090,00016 St Marys Viwandani Mukuru SU gave a CPA-Scholarship to their top girl 27,80017 Madaraka youthMadarakaEstate Tuition classes for form three and four students 100,00018 Ikumbo Catholic Church Meru Building of the church 600,000192021MukumuMission HospitalNaivasha MaximumprisonsShimo La Tewamaximum PrisonsMukumu Painting 125,000Naivasha Donation of games kit Donation CPA study kits Donation of stationary Hosting of an inmate for SU graduation12,00010,0005,00078,000Mombasa Donation CPA study kits 59,06022 Mau Forest Mau Tree planting 46,00023 Chania Thika Mentoring 36,00024 COP Visits Children’s homes Homes for the Elderly Hospitals300,000Total 7,419,662Quality Assurance in ManagementTo achieve quality assurance in its management, the University has implemented a quality management system (QMS) based onISO 9001:2000. The University is committed to continuously improve the effectiveness of QMS to ensure that it fulfills its purpose.Strathmore has always strived to maintain a culture of excellence and implementing the QMS has provided the means to formaliseand solidify that culture into our everyday work. In doing so, it has demonstrated its ability to provide consistently products thatmeet customer and applicable regulatory requirements, and to address customer satisfaction through the effective application of thesystem, including continual improvement and the prevention of nonconformity.Small but significant steps aligned to the continuous improvement ethos of the quality system have occurred in 2010; Quality is a session in all new staff inductions ensuring an initial but profound awareness of the importance the Universityplaces on quality. Increased number of trained Internal quality auditors from academic staff leading to greater awareness on quality issues and alsoan ability to is effectively implement and maintain the QMS. All internal quality auditors were formally informed of their duties. Internal audits were conducted for administrative and service units on 12th - 16th April 2010 and for academic units in June-July2010. The last internal audits were conducted using the ISO 9001:2008 STANDARD in preparation for the upcoming recertificationaudits.1.2 Quality Assurance in AcademicsIn recognition of the fact that students are our first line customers, customer surveys are moving the responsibility to academicunits and analysis leading to initiatives to improve delivery of academic departments. In this regard, a second electronic universitywidecustomer survey was conducted. The universal approach ensures that the same elements are examined across the universityallowing for comparisons and setting of universal achievement targets. Collecting, managing and analyzing various process indicators to ensure that the teaching and learning process is constantlyimproving. These indicators include statistics on admission lists, class lists, attendance, pass rates, use of facilities.ANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 201015

STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010COMMUNITY OUTREACHStudents working at a Community Outreach activityPeter Kamau, an inmate at Naivasha MaximumSecurity Prison (left) and Joseph Mutiria, a prisonWallace Mokembo (foreground) with other COP members at a tree planting exercise atSasumua Dam in the Abedares forest16ANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 2010

STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010NEW SCHOOL AND PROGRAMMESThe School of Finance & Applied Economics (SFAE)The University launched the School of Finance & Applied Economics (SFAE) in May 2010. SFAE started three programmes, theFaculty of Information Technology started two new undergraduate programmes, and IHEDS (Institute of Humanities, Education, andDevelopment Studies) started two master’s programmes.SFAE offers the Bachelor of Business Science (BBS) programme with three specialisations that will lead to three distinct degrees i.e.BBS in Actuarial Science, BBS in Finance, and BBS in Financial Economics.The BBS programme is designed to equip the graduate with academic, practical and interpersonal skills that can be applied in thefinancial modeling and risk analysis practice. Emphasis will be on the use of simulations, case studies, seminars and guest lecturemethods of delivery to ensure the graduate gets a real feel of the industry and benefit from this world-class programme.New Degrees in the FITThe two new degrees offered by FIT are the Bachelor of Science in Informatics (BSc.IF) and the Bachelor of Science inTelecommunications (BSc. TC). BSc.TC is designed to prepare graduates with good computer and telecommunications skills whichare important in the emerging knowledge economy defined by such technologies as mobile telephony.BSc.IF has been developed in response to employer demand for people who have more than just technical skill but also understandtheir employer’s organization and use strong people skills to work in a team environment.News Master’s programmesIHEDS offers two master’s programmes. These are the Master’s of Science in Education Management under the Centre of Education(CoE), and the Master’s in Philosophy and Ethics (MAPE) under the Centre for Applied Philosophy and Ethics (CAPE).SPORTSThe University’s men hockey team made history when it represented Kenya in the Africa club champions in Accra Ghana in December byvirtue of its being the Kenya Hockey Union (KHU) premier league champions in 2009. The team retained the KHU title in 2010 and willhave the honour of representing the country again in 2011.Scorpions, the women’s hockey was fourth in the KHU premier league. Both the University’s men and women basketball teams werealso second runners up in the Kenya Basketball Federation premier leagues. The University’s soccer team, Strath FC was eighth in thenationwide league, the second tier football league in the country. Leos, the University’s rugby team played in Kenya Cup, the highest rugbyleague in the country, won the Nakuru 10s tournament, and emerged fourth in the national 7s circuit.The University also participated in the 2010 East Africa university games. The soccer men, hockey women, basketball women, karateindividual women (Kata), karate individual men (Kata) and karate team men (Kata) won gold medals.It got silver medals from Rugby men, women individual table tennis, and ladies karate team (Kata) won silver medals. The karate teamwomen (Kumite), karate team men (Kata) and men table tennis all got silver. 37 universities from the East Africa Region participated.Strathmore was placed sixth overall.TEAM COMPETITION POSITION COMPETITION POSITIONBASKETBALL (MEN) KBF PREMIER LEAGUE 3 EAST AFRICA UNIVERSITIES GAMES LAST 16BASKETBALL (WOMEN) KBF PREMIER LEAGUE 3 EAST AFRICA UNIVERSITIES GAMES 1FOOTBALL (MEN) FKL NATIONWIDE LEAGUE 8 EAST AFRICA UNIVERSITIES GAMES 1HOCKEY (MEN) KHU PREMIER LEAGUE 1 EAST AFRICA UNIVERSITIES GAMES -HOCKEY (WOMEN) KHU PREMIER LEAGUE 4 EAST AFRICA UNIVERSITIES GAMES 2 -KARATE KATA INDIVIDUAL (MEN) - - EAST AFRICA UNIVERSITIES GAMES 1KARATE KATA INDIVIDUAL(WOMEN)- - EAST AFRICA UNIVERSITIES GAMES 1KARATE KATA TEAM (MEN) - - EAST AFRICA UNIVERSITIES GAMES 1KARATE KATA TEAM (MEN) - - EAST AFRICA UNIVERSITIES GAMES 3KARATE KATA TEAM (WOMEN) - - EAST AFRICA UNIVERSITIES GAMES 2KARATE KUMITE TEAM (WOMEN) - - EAST AFRICA UNIVERSITIES GAMES 3TABLE TENNIS (MEN) - - EAST AFRICA UNIVERSITIES GAMES 3TABLE TENNIS (INDIVIDUALWOMEN)- - EAST AFRICA UNIVERSITIES GAMES 2RUGBY MEN KENYA CUP 5 EAST AFRICA UNIVERSITIES GAMES 2ANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 201017

STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010Gladiators (in white and black), Strathmore’s men hockeyteam is the Kenya Hockey Union (KHU) 2010 championStrath FC, the 2010 East Africa UniversitiesGames football championSwords, the women basketball team is the2010 East Universities Games championLeos, the University’s rugby teamis the 2010 Nakuru 10s championScorpions, the women hockey team is the2010 East Universities Games champion18ANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 2010

STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010GENERAL INFORMATIONPRINCIPAL PLACE OF BUSINESSStrathmore UniversityOle Sangale Road, MadarakaP.O. Box 59857 – 00200NAIROBIBANKERSCommercial Bank of Africa LimitedIndustrial Area BranchP.O. Box 30437 – 00100NAIROBICFC Stanbic Bank LimitedUpper Hill Medical Centre BranchP.O. Box 2492 - 00200NAIROBIEquity Bank LimitedCommunity BranchP.O. Box 8181 - 00100NAIROBIStandard Chartered Bank Kenya LimitedKaren BranchP.O. Box 24601 - 00502NAIROBICitibank KenyaCitibank House, Upper HillP.O. Box 30711 - 01200NAIROBIBarclays Bank of Kenya LimitedBarclays Plaza BranchP.O. Box 46661 - 00200NAIROBICo-operative Bank of Kenya LimitedUpper Hill branchP.O. Box 30415 - 00100NAIROBII & M Bank LimitedIndustrial Area BranchP.O Box 30238-00100NAIROBIChase Bank LimitedP.O Box 66049-00800NAIROBIAUDITORPricewaterhouseCoopersCertified Public AccountantsP.O. Box 43963 – 00100NAIROBILAWYERSA F Gross AdvocatesP.O. Box 57792 – 00200NAIROBINyiha, Mukoma and AdvocatesP.O. Box 28491 – 00200NAIROBIMANAGEMENT BOARDProf. John Odhiambo (Vice Chancellor)Dr. Charles Sotz (University Secretary)(Appointed 1 September 2010)Mr. Kamau Kuria (Resigned on 1 September 2010)(University Secretary)Dr. Izael Da Silva (Appointed on 1 September 2010)Mr. Daniel Kiilur (Appointed on 1 September 2010)Ms. Stella MwangiDr. Florence Oloo (Resigned on 1 September 2010)Ms. Margaret Roche (Resigned on 1 September 2010)ANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 201019

STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010UNIVERSITY COUNCIL’S REPORTThe University Council submit their report together with the audited financial statements for the year ended 31 December2010, which disclose the state of affairs of the University.PRINCIPAL ACTIVITIESThe principal activity of the University is provision of higher education.UNIVERSITY COUNCILThe members of University Council who held office during the year and to the date of this report were:Prof. Terry Ryan(Chairman)Prof. John Odhiambo(Secretary)Dr. Charles SotzMr. Martin KisuuMs. Olga MarlinMrs. Bernadette MusundiMr. Vitalis OjodeMrs. Zipporah WanderaMs. Belinda RegoMr. Fernando AizpunDr. Florence Oloo (Resigned on 1 September 2010)Mr. Kamau Kuria (Resigned on 1 September 2010)AUDITORThe University’s auditor, PricewaterhouseCoopers, was appointed to office in accordance with Section 33(2) of theUniversity Charter.By order of the University CouncilProfessor John OdhiamboSecretaryNairobi30th March 201120ANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 2010

STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010STATEMENT OF UNIVERSITY COUNCIL’S RESPONSIBILITIESIt is the responsibility of the University Council to prepare financial statements for each financial year that give a true and fairview of the state of affairs of the University as at the end of the financial year and of its operating result. The University Councilare also responsible for ensuring that the University keeps proper accounting records that disclose, with reasonable accuracy,the financial position of the University. The Council is also responsible for safeguarding the assets of the University.The University Council accepts responsibility for the annual financial statements, which have been prepared usingappropriate accounting policies supported by reasonable estimates, in conformity with International Financial ReportingStandards. The Council is of the opinion that the financial statements give a true and fair view of the state of the financialaffairs of the University and of its operating result in accordance with International Financial Reporting Standards. TheCouncil further accepts responsibility for the maintenance of accounting records that may be relied upon in the preparationof financial statements, as well as designing, implementing and maintaining internal control relevant to the preparation andfair presentation of financial statements that are free from material misstatement.Nothing has come to the attention of the Council to indicate that the University will not remain a going concern for at leasttwelve months from the date of this statement.………………………………………………CHAIRMAN……………………………………………………COUNCIL MEMBERDate30th March 2011ANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 201021

REPORT OF THE INDEPENDENT AUDITOR TOTHE MEMBERS OF STRATHMORE UNIVERSITYREPORT OF THE INDEPENDENT AUDITOR TOTHE MEMBERS OF STRATHMORE UNIVERSITYSTRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010Report on the financial statementsWe have audited the accompanying financial statements of Strathmore University (the University) asset out on pages 5 to 35. These financial statements comprise the statement of financial position at 31December 2010 and the statement of comprehensive income, statement of changes in equity and thestatement of cash flows for the year then ended, and a summary of significant accounting policies andother explanatory notes.University Council’s responsibility for the financial statementsThe University Council is responsible for the preparation and fair presentation of these financialstatements in accordance with International Financial Reporting Standards and for such internalcontrol, as the University Council determine necessary to enable the preparation of financialstatements that are free from material misstatements, whether due to fraud or error.Auditor’s responsibilityOur responsibility is to express an opinion on the financial statements based on our audit. Weconducted our audit in accordance with International Standards on Auditing. Those standardsrequire that we comply with ethical requirements and plan and perform our audit to obtainreasonable assurance that the financial statements are free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts and disclosuresin the financial statements. The procedures selected depend on the auditor’s judgement, includingthe assessment of the risks of material misstatement of the financial statements, whether due tofraud or error. In making those risk assessments, the auditor considers internal control relevant tothe entity’s preparation and fair presentation of the financial statements in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of the University’s internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of accounting estimates made bythe University Council, as well as evaluating the overall presentation of the financial statements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.OpinionIn our opinion the accompanying financial statements give a true and fair view of the state of thefinancial affairs of the University at 31 December 2010 and of the surplus and cash flows of theUniversity for the year then ended in accordance with International Financial Reporting Standards.Certified Public Accountants 4th April 2011Nairobi22ANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 2010

STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010Statement of financial positionASSETSNon-current assetsProperty and equipmentNotes931 December2010Shs ‘0001,386,210Restated31 December2009Shs ‘0001,144,827Restated31 December2008Shs ‘000832,029Leasehold land 10 1,680,801 1,105,004 1,118,153Intangible assets 11 13,552 12,649 20,599Endowment fund deposits 12 56,338 49,860 45,631Designated funds deposits 13 85,511 113,667 56,3403,222,412 2,426,007 2,072,752Current assetsInventories 14 13,306 18,224 19,638Trade and other receivables 15 133,232 120,476 141,077Short term deposits 16 176,391 116,721 120,432Equity investment 17 1,478 1,198 821Amounts due from related parties 18(a) 3,757 4,867 8,227Cash and bank balances 16 83,151 87,658 95,379411,315 349,144 385,574TOTAL ASSETS 3,633,727 2,775,151 2,458,326ACCUMULATED FUND AND LIABILITIESAccumulated FundCapital investment fund 148,732 148,732 148,732Revaluation reserve 19 1,561,585 997,096 1,037,018Accumulated surplus 225,691 187,504 227,1201,936,008 1,333,332 1,412,870Non-current liabilitiesEndowment funds 20 57,297 49,170 44,993Designated funds 21 118,667 116,017 57,999Deferred income-capital grants 5 256,839 253,685 211,629Long term loans 22 762,774 650,970 357,8541,195,577 1,069,842 672,475Current liabilitiesTrade and other payables 23 396,474 306,405 305,190Contribution to SERT 18(b) 21,829 8,285 14,428Overdraft and short-term loans 22 83,839 57,287 53,363502,142 371,977 372,981TOTAL ACCUMULATED FUNDS AND LIABILITIES 3,633,727 2,775,151 2,458,326The financial statements were approved by the University Council on 16 March 2011 and signed on its behalf by:-…………………………………Chairman……………………….………Council MemberANNUAL REPORT AND FINANCIALSTATEMENTS FOR THE YEARENDED 31 DECEMBER 201023

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STRATHMORE UNIVERSITYANNUAL REPORT AND FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 DECEMBER 2010STRATHMORE UNIVERSITYMadaraka Estate, Ole Sangale RoadP O Box 59857-00200 City SquareNairobi KenyaTel: (+254) (0) 20 600 6155Cell: (+254) (0) 722 205 428, 733 618 135Fax: (+254) (0) 20 600 7498admissions@strathmore.eduwww.strathmore.edu