2. East African Communications Organisation (EACO) Audited Financial Statements For the year ended 30 June 2014 Pres Presentation by: Peter Rutaremara

3. Financial Statements PRESENTATION

4. Introduction We audited the financial statements of EACO for the year ended 30 June 2014. Our audit was conducted in accordance with the terms of reference. The terms of reference sets out the basis on which we act as auditor of the organization and the respective areas of responsibility of the Congress and of ourselves, which we highlight below: Congress’ responsibility Article 8 of EACO’s constitution establishes the Congress as the highest decision making organ. The constitution gives the Congress the ultimate responsibility to maintain proper books of account and accounting records and to prepare financial statements in accordance with the Financial Rules and Regulations which are consistent with the International Financial Reporting Standards.

5. Auditor’s responsibility under International Standards on Auditing As the independent auditor of the organization, we have a statutory responsibility to report to the members whether:  in our opinion the financial statements give a true and fair view of the financial affairs of the organization; and  the financial statements have been prepared in accordance with International Financial Reporting Standards. We are also required to obtain sufficient and appropriate audit evidence, by performing procedures about the amounts and disclosures in the financial statements. The procedures we select depend on our judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

6. EACO Financial Statements Audit Opinion for the year ended 30 June 2014 In our opinion, the financial statements give a true and fair view of the financial position of East African Communications Organisation as at 30 June, 2014, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards.

7. Statement of Comprehensive Income - Income Income 30 June 2014 30 June 2013As a % of TotalAs a % of 2013 Usd Membership contributions 848,500 850,50052%-0.24% Other Members Support Income - 10,626 --100.00% Subsidies for Secondment scheme 581,729 523,77335%11.06% Other Income 152,041 38,1779%298.26% Exchange gain 56,984 -3% 1,639,254 1,423,076100%

8. EACO Financial Statements Income graph by source

9. EACO Financial Statements Notes on Income  Total income has increased mainly due to an increase of other income. This was mainly caused by Usd 148,821 received from an exhibition held during the year.  Exchange gain has increased during the year mainly as a result of revaluation of bank balances held in local currency (Rwf)  Membership contribution accounts for 52% of total income.

10. EACO Financial Statements Statement of Comprehensive Income - Expenditure 30 June 2014 30 June 2013As a % of TotalAs a % of 2013 Expenditure Usd Office Supplies 20,495 16,5112%24.13% Operating Expenses 193,337 222,79116%-13.22% Other operating Expenses 254,521 54521%46635.08% Staff Costs 617,762 538,28652%14.76% Depreciation 36,647 21,6703%69.12% Translation loss 69,352 36,2476%91.33% 1,192,114 836,050

11. EACO Financial Statements Notes on Expenditure  Staff costs account for 52% of the total costs  Other operating costs are mainly made up of a provision for bad debts amounting to Usd 243,000 representing 90% of the debtors for the year 2012/2013.

12. EACO Financial Statements Statement of Financial Position - Assets ASSETS 30 June 2014 30 June 2013As a % of TotalAs a % of 2013 Non Current Assets Usd Property and equipment 176,693 123,69812.94%42.84% Current Assets Trade receivables 498,538 284,36436.51%75.32% Cash and cash equivalents 690,331 528,70350.55%30.57% TOTAL ASSETS 1,365,562 936,765100.00%45.77%

13. EACO Financial Statements Notes on Assets  Cash and cash equivalents comprise of 50.55% of the total assets  Trade and other receivables have increased by 75.32% as compared to the period ended 30 th June 2013. This was mainly caused by the unpaid invoices raised for the subscriptions relating to the year ended 30 th June 2014.  The 42.84% increase in assets is mainly attributable to IT equipment acquired at a cost of Usd 49,580.

14. EACO Financial Statements Statement of Financial Position – Members funds and Liabilities ASSETS 30 June 2014 30 June 2013As a % of TotalAs a % of 2013 Members funds and Reserves Usd Starting Funds (RURA) 208,527 221,46316.89%-5.84% Grant of Equipment (RURA) 4,336 6,3140.35%-31.33% Accumulated Funds 1,021,816 587,02682.76%74.07% 1,234,679 814,803100.00%51.53% Current Liabilities Trade and other payables 68,247 61,39652.14%11.16% Prepaid Income 62,636 60,56647.86%3.42% 130,883 121,962100.00%7.31%

15. EACO Financial Statements Notes on Liabilities  Total members funds increased by 51.53% mainly due to the increased surplus during the year.  Current liabilities grew by 7.31%

16. Conclusion PRESENTATION

17. CONCLUSION Questions and Answers

18. Thank you