NAMIBIA COAST CONSERVATION AND MANAGEMENT PROJECT (NACOMA) ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2015 Namibia Coast Conservation and Management Project (NACOMA) Annual Financial Statements for the year ended 31 December 2015 General Information Country of incorporation and domicile Namibia Business address 22 Hendrik Witbooi Street Swakopmund Namibia Postal address P 0 Box 7081 Swakopmund Namibia Bankers Standard Bank Namibia Auditors PricewaterhouseCoopers Registered Accountants and Auditors Chartered Accountants (Namibia) Project Finance Manager C Kandjii Namibia Coast Conservation and Management Project (NACOMA) Annual Financial Statements for the year ended 31 December 2015 Contents The reports and statements set out below comprise the annual financial statements presented to the project management: Contents Page Statement of Responsibilities 3 Independent Auditor's Report 4 Statement of Financial Position 5 Statement of Comprehensive Income 6 Statement of Changes in Equity 7 Statement of Cash Flows 8 Accounting Policies 9-13 Notes to the Annual Financial Statements 14 - 18 2 Namibia Coast Conservation and Management Project (NACOMA) Annual Financial Statements for the year ended 31 December 2015 Statement of Responsibilities The projects' management are required to maintain adequate accounting records and are responsible for the content and integrity of the annual financial statements and related financial information included in this report. It is their responsibility to ensure that the annual financial statements fairly present the state of affairs of the project as at the end of the financial year and the results of its operations and cash flows for the period then ended, in conformity with the International Financial Reporting Standards. The external auditors are engaged to express an independent opinion on the annual financial statements. The annual financial statements are prepared in accordance with the International Financial Reporting Standards and are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates. The projects' management acknowledge that they are ultimately responsible for the system of internal financial control established by the project and place considerable importance on maintaining a strong control environment. To enable the projects' management to meet these responsibilities, the project's steering committee sets standards for internal control aimed at reducing the risk of error or loss in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the project and all employees are required to maintain the highest ethical standards in ensuring the project's business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the project is on identifying, assessing, managing and monitoring all known forms of risk across the project. The projects management are of the opinion, based on the information and explanations given by management, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the annual financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or loss. The external auditors are responsible for independently auditing and reporting on the project's annual financial statements. The annual financial statements have been examined by the project's external auditors and their report is presented on page 4. The annual financial statements set out on pages 5 to 18, were approved by the project management and were signed on their behalf by: P nVVao Project Finance Ma4ger Walvis Bay 41 (Date) 3 -L pwc Independent Auditor's Report To the project management of Namibia Coast Conservation and Management Project (NACOMA) We have audited the annual financial statements of Namibia Coast Conservation and Management Project (NACOMA), which comprise the statement of financial position as at 31 December 2015, and the statements of comprehensive income, changes in equity and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information, and the directors' report, as set out on pages 5 to 18: Management'Responsibility for the Financial Statements The projects's management are responsible for the preparation and fair presentation of these annual financial statements in accordance with the International Financial Reporting Standards and for such internal control as the management determine is necessary to enable the preparation of annual financial statements that are free from material misstatements, whether due to fraud or error. Auditors's Responsibility Our responsibility is to express an opinion on these annual financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the annual financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the annual financial statements. The procedures selected depend on the auditors's judgement, including the assessment of the risks of material misstatement of the annual financial statements, whether due to fraud or error. Inwmaking those risk assessments, the auditor considers internal control relevant to the company's preparation and fair presentation of the annual financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the annual financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Namibia Coast Conservation and Management Project (NACOMA) as at 31 December 2014, and its financial performance and its cash flows for the year then ended in accordance with the International Financial Reporting Standards. PricewatehouseCoopers Registered Accountants and Auditors Chartered Accountants (Namibia) Ansie Rossouw Partner Walvis bay, PricewaterhouseCoopers, Registered Auditors, Nedbank Building, Cnr Sam Nujoma Avenue and Eleventh Road, Wazlvis BayP 0 Box 12, Walvis Bay, Namibia Practice Number 94o6, T: +264 (64) 21 77oo, F:+264 (64) 217800, www,pwc.com/na Country Senior Partner: R Nangula Uaandja Partners: Carl P van der Merwe, Louis van der Riet, Anna EJ Rossouw (Partner in charge: Coast), Serelta N Lombaard, Stefan Hugo, Chantell N Husselmann, Gerrit Esterhuyse, Talita B Horn, Samuel N Ndahangwapo, Hans F Hashagen, Johannes P Nel, Annette van Collar 4 Namibia Coast Conservation and Management Project (NACOMA) Annual Financial Statements for the year ended 31 December 2015 Statement of Financial Position as at 31 December 2015 2015 2014 Notes N$ N$ Assets Non-Current Assets Property, plant and equipment 4 1,681,175 409,890 Current Assets Trade and other receivables 5 797,802 954,063 Cash and cash equivalents 6 1,428,163 667,179 2,225,965 1,621,242 Total Assets 3,907,140 2,031,132 Equity and Liabilities Equity Accumulated surplus 2,837,639 1,934,732 Liabilities Current Liabilities Trade and other payables 7 1,069,501 96,400 Total Equity and Liabilities 3,907,140 2,031,132 5 Namibia Coast Conservation and Management Project (NACOMA) Annual Financial Statements for the year ended 31 December 2015 Statement of Comprehensive Income 2015 2014 Notes N$ N$ Revenue 8 10,457,892 10,155,317 Other income 9 1,029,784 40,000 Project expenses (12,084,769) (10,441,974) Deficit for the year (597,093) (246,657) Other comprehensive income Total comprehensive loss for the year (597,093) (246,657) 6 Namibia Coast Conservation and Management Project (NACOMA) Annual Financial Statements for the year ended 31 December 2015 Statement of Changes in Equity Accumulated Total equity surplus N$ N$ Balance at 01 January 2014 1,081,389 1,081,389 Deficit for the year (246,657) (246,657) Other comprehensive income Total comprehensive loss for the year (246,657) (246,657) Grants received: Government of the Republic of Namibia 1,100,000 1,100,000 Total government grants received 1,100,000 1,100,000 Balance at 01 January 2015 1,934,732 1,934,732 Deficit for the year (597,093) (597,093) Other comprehensive income Total comprehensive loss for the year (597,093) (597,093) Grants received: Government of the Republic Namibia 1,500,000 1,500,000 Total government grants received 1,500,000 1,500,000 Balance at 31 December 2015 2,837,639 2,837,639 7 Namibia Coast Conservation and Management Project (NACOMA) Annual Financial Statements for the year ended 31 December 2015 Statement of Cash Flows 2015 2014 Notes N$ N$ Cash flows from operating activities Cash used in operations 11 (481,161) (423,103) Cash flows from investing activities Purchase of property, plant and equipment 4 (1,287,639) (129,373) Sale of property, plant and equipment 4 1,029,784 40,000 Net cash to investing activities (257,855) (89,373) Cash flows from financing activities Government grants received 1,500,000 1,100,000 Total cash and cash equivalents movement for the year 760,984 587,524 Cash and cash equivalents at the beginning of the year 667,179 79,655 Total cash and cash equivalents at end of the year 6 1,428,163 667,179 8 Namibia Coast Conservation and Management Project (NACOMA) Annual Financial Statements for the year ended 31 December 2015 Accounting Policies 1. Basis of presentation The financial statements have been prepared in accordance with the International Financial Reporting Standards. The annual financial statements have been prepared on the historical cost basis, and incorporate the principal accounting policies set out below. They are presented in Namibia Dollar. 1.1 Significant assumptions and judgements In preparing the financial statements, management is required to make estimates and assumptions that affect the amounts represented in the financial statements and related disclosures. Use of available information and the application of judgement is inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the financial statements. The project did not use significant assumptions and judgements during the year. 1.2 Property, plant and equipment Property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items. The assets residual value and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date. An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. Gains and losses on disposal are determined by comparing proceeds with carrying amount. These are included in the statement of comprehensive income. Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses. Item Average useful life Furniture and fixtures 3 years Motor vehicles 3 years The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, if there is an indication of a significant change since the last reporting date. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item and have significantly different patterns of consumption of economical benefits is depreciated separately over its useful life. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'other gains/(losses) - net' in the statement of comprehensive income. 9 Namibia Coast Conservation and Management Project (NACOMA) Annual Financial Statements for the year ended 31 December 2015 Accounting Policies 1.3 Financial instruments Financial assets Classification The project classifies its financial assets as subsequently measured at either amortised cost or fair value on the basis of of both: the project's business model for managing financial assets; and the contractual cash flow characteristics of the financial asset. Financial assets are measured at amortised cost if both of the following conditions are met: the asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and the contractual term of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. If a measurement or recognition inconsistency is eliminated or significantly reduced by designating a financial asset as measured at fair value through profit or loss, the project has the discretion to elect this option at the financial asset's initial recognition. Classification is not based on an instrument-by-instrument approach, but is determined at a higher level of aggregation. Classification is determined at initial recognition of a financial asset. At this point, the project may make an irrevocable election to present in other comprehensive income subsequent changes in fair value of an investment in an equity instrument that is not held-for-trading. Trade and other receivables and cash and cash equivalents are classified as financial assets at amortised cost, Recognition and measurement Initial measurement Regular purchases and sales of financial assets are recognised on the trade date, the date on which the project commits to purchase or sell the asset. Investments are initially recognised at fair value plus, in the case of a financial asset not at fair value through profit and loss, transaction costs that are directly attributable to the acquisition of the financial asset, Financial assets are carried at fair value through profit or loss are initially recognised at fair value and transaction costs are expensed in the statement of comprehensive income. Subsequent measurement Financial assets at fair value are subsequently carried at fair value. Financial assets at amortised cost are carried at amortised cost using the effective interest method. Realised and unrealised gains or losses arising from changes in the fair value of a financial asset that is measured at fair value and is not part of a hedging relationship shall be recognised in the statement of comprehensive income within "realised gains / (losses) on financial assets" or "unrealised gains / (losses) on financial assets" in the period in which they arise, unless the financial asset is an investment in an equity instrument and the entity has elected to present gains and losses on that investment in other comprehensive income. Gains or losses on a financial asset that is measured at amortised cost and is not part of a hedging relationship shall be recognised in the statement of comprehensive income when the financial asset is derecognised, impaired or reclassified, and through the amortisation process. Dividend income from financial assets at fair value and financial assets at amortised cost is recognised in the statement of comprehensive income as part of investment income when the project's right to receive payments is established. Interest on financial assets at fair value and financial assets at amortised cost calculated using the effective interest rate method is recognised in the statement of comprehensive income as part of investment income. 10 Namibia Coast Conservation and Management Project (NACOMA) Annual Financial Statements for the year ended 31 December 2015 Accounting Policies 1.3 Financial instruments (continued) Derecognition Financial assets are derecognised when the rights to receive cash flows from the investments have expired or have been transferred and the company has transferred substantially all risks and rewards of ownership. Financial liabilities Classification The project classifies its financial liabilities as at fair value through profit or loss or as financial liabilities at amortised cost. The project has the option to classify the financial liability as at fair value through profit or loss if it is held-for-trading or if the prerequisites in IAS 39.9 (b) are met and it is designated upon initial recognition as at fair value through profit or loss. Borrowings and trade and other payables are classified as financial liabilities at amortised cost. Recognition and measurement initial measurement Financial liabilities are recognised when the project becomes a party to the contractual provisions of the instrument. They are initially recognised at fair value plus, in the case of financial liabilities not at fair value through profit and loss, transaction costs that are directly attributable to the acquisition of the liability. Financial liabilities carried at fair value through profit or loss are initially recognised at fair value and transaction costs are expensed in the statement of comprehensive income. Subsequent measurement Financial liabilities at amortised cost are carried at amortised cost using the effective interest method. Financial liabilities at fair value are subsequently carried at fair value, unless he exceptions in IAS 39 par 47 apply, Gains or losses on a financial liability that is measured at amortised cost and is not part of a hedging relationship shall be recognised in the statement of comprehensive income when the financial asset is derecognised, impaired or reclassified, and through the amortisation process. Realised and unrealised gains or losses arising from changes in the fair value of a financial liability that is measured at fair value and is not part of a hedging relationship shall be recognised in the statement of comprehensive income within "realised gains / (losses) on financial assets" or "unrealised gains / (losses) on financial assets" in the period in which they arise. Derecognition Financial liabilities are derecognised when they are extinguished - the obligation specified in the contract is discharged or cancelled or expires. Impairment of financial assets At each reporting date the project assesses all financial assets, other than those at fair value through profit or loss, to determine whether there is objective evidence that a financial asset or group of financial assets has been impaired. For amounts due to the project, significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy and default of payments are all considered indicators of impairment. Namibia Coast Conservation and Management Project (NACOMA) Annual Financial Statements for the year ended 31 December 2015 Accounting Policies 1.3 Financial instruments (continued) In the case of equity securities classified as available-for-sale, a significant or prolonged decline in the fair value of the security below its cost is considered an indicator of impairment. If any such evidence exists for available- for-sale financial assets, the cumulative loss - measured as the difference between the acquisition cost and current fair value, less any impairment loss on that financial asset previously recognised in profit or loss - is removed from equity as a reclassification adjustment to other comprehensive income and recognised in profit or loss. Impairment losses are recognised in profit or loss. Impairment losses are reversed when an increase in the financial asset's recoverable amount can be related objectively to an event occurring after the impairment was recognised, subject to the restriction that the carrying amount of the financial asset at the date that the impairment is reversed shall not exceed what the carrying amount would have been had the impairment not been recognised. Reversals of impairment losses are recognised in profit or loss except for equity investments classified as available-for-sale. Impairment losses are not subsequently reversed for available-for-sale equity investments which are held at cost because fair value was not determinable. Where financial assets are impaired through use of an allowance account, the amount of the loss is recognised in profit or loss within operating expenses. When such assets are written off, the write off is made against the relevant allowance account. Subsequent recoveries of amounts previously written off are credited against operating expenses. Offsetting financial instruments Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability. Trade and other receivables Trade and other receivables are recognised initially at fair value and consequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for impairment of trade receivables is established when there is objective evidence that the project will not be able to collect all amounts due according to the original terms of receivables. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments are considered indicators that the receivable is impaired. The amount of the provision is the difference between the asset's carrying amount and the present value of future cash flows, discounted at the effective interest rate. The amount of the provision is recognised in the income statement within 'selling and marketing costs'. Cash and cash equivalents Cash and cash equivalents are carried in the statement of financial position at cost. For the purpose of the statement of cash flows, cash and cash equivalents comprise cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. In the balance sheet, bank overdrafts are included in borrowings in current liabilities. 12 Namibia Coast Conservation and Management Project (NACOMA) Annual Financial Statements for the year ended 31 December 2015 Accounting Policies 1.4 Taxation The project is exempt from normal taxation. 1.5 Revenue Grant income Grants received from the Government of the Republic of Namibia under the following circumstances are considered to be grants received from the government in their capacity as a shareholder. Accordingly, they are recognised in equity: * similar grants are not provided to non-government owned entities * the government did not transact with the government owned entity (the project) in the normal course of business - ie. as a user of their services or goods; and * the government owned entity (the project) did not participate in a competitive tender against other non- government owned entities to obtain the funding. Interest income Interest income is recognised on a time proportion basis using the effective interest method. When receivable is impaired, the carrying amount is reduced to its recoverable amount, being the estimated future cash flows discounted at original effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired loans is recognised using the original effective interest rate. 1.6 Borrowing costs Borrowings are recognised initially at the transaction price (that is, the present value of cash payable to the bank, including transaction costs). Borrowings are subsequently stated at amortised cost. Interest expense is recognised on the basis of the effective interest method and is included in finance costs. Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. 13 Namibia Coast Conservation and Management Project (NACOMA) Annual Financial Statements for the year ended 31 December 2015 Notes to the Annual Financial Statements 2. New Standards and Interpretations 2.1 Standards and interpretations effective and adopted in the current year In the current year, the project has adopted no new standards and interpretations. 2.2 Standards and interpretations not yet effective The project has chosen not to early adopt the following standards and interpretations, which have been published and are mandatory for the company's accounting periods beginning on or after 01 January 2015 or later periods: Standard / Interpretation Effective date: Years beginning on or after Amendments to IAS1- Presentation of financial statements disclosure initiative 01 January 2016 Amendments to IAS 16- Property, plant and equipment on depreciation and 01 January 2016 amortisation Amendments to IAS 7- Cash flow statements 01 January 2017 IFRS 9 - Financial statements (2009 & 2010), 01 January 2018 -Derecognition of financial instruments; -Financial liabilities; and -Financial assets IFRS 16- Leases 01 January 2019 3. Risk management Capital risk management The project is exposed to financial risk through its financial assets and financial liabilities. In particular the key financial risk is that the proceeds from its financial assets are not sufficient to fund the obligations arising from its obligations. The most important components of this financial risk are credit risk, liquidity risk, interest rate risk and market risk. The Project's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Project's solvency requirement. The Project's management has overall responsibility for the establishment and oversight of the Project's risk management framework. The Project manages these risks through various risk management processes. These processes have been developed to ensure that the long-term investment return on assets supporting the liabilities is sufficient to fund members' reasonable expectations. The following processes have been established by the Projects' management to assist in the implementation and monitoring of these risk management processes: Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through and adequate amount of committed credit facilities and the ability to close out market positions. Due to the dynamic nature of the underlying businesses, the Project aims at maintaining flexibility in funding by keeping committed credit lines available. The capital structure of the project consists of cash and cash equivalents disclosed in note 6, and equity as disclosed in the statement of financial position. There are no externally imposed capital requirements. 14 Namibia Coast Conservation and Management Project (NACOMA) Annual Financial Statements for the year ended 31 December 2015 Notes to the Annual Financial Statements 3. Risk management (continued) There have been no changes to what the entity manages as capital, the strategy for capital maintenance or externally imposed capital requirements from the previous year. Financial risk management The project's activities expose it to a variety of financial risks: market risk (including cash flow interest rate risk), credit risk and liquidity risk. Liquidity risk Liquidity risk is the risk that the Project will not be able to meet its financial obligations as they fall due. The Project's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Project's reputation. The table below analyses the project's financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant. At 31 December 2015 Less than 1 Between 1 Between 2 Over 5 years year and 2 years and 5 years Trade and other payables 1,069,501 - - Interest rate risk As the project has no interest-bearing assets, the project's income and operating cash flows are substantially independent of changes in market interest rates. Credit risk Credit risk is the risk of financial loss to the Project, if a counterparty to a financial instrument fails to meet its contractual obligations. The Project's principal financial assets are cash and cash equivalents and trade and other receivables. The Project's credit risk is primarily attributable to its trade and other receivables. Credit risk consists mainly of cash deposits, cash equivalents and trade debtors. The company only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party. Accounts and other receivables: Accounts and other receivables comprises advances to employees and VAT input claims. The Project has no significant concentrations of credit risk. Cash is placed with substantial financial institutions. Receivables are regularly monitored and assessed and, where necessary, an adequate level of provision is maintained. Financial assets exposed to credit risk at year end were as follows: Financial instrument 2015 2014 Trade and other receivables 18,500 56,000 Cash and cash equivalents 1,428,163 667,179 The project banks with Standard Bank Namibia who has a credit rating of F3. Foreign exchange risk 15 Namibia Coast Conservation and Management Project (NACOMA) Annual Financial Statements for the year ended 31 December 2015 Notes to the Annual Financial Statements 3. Risk management (continued) The project is not exposed to foreign exchange risk, Price risk The project is not exposed to price risk. 16 Namibia Coast Conservation and Management Project (NACOMA) Annual Financial Statements for the year ended 31 December 2015 Notes to the Annual Financial Statements 4. Property, plant and equipment 2015 2014 Cost or Accumulated Carrying Cost or Accumulated Carrying revaluation depreciation value revaluation depreciation value Furniture and fixtures 1,427,727 (1,297,923) 129,804 225,238 (100,456) 124,782 Motor vehicles 629,175 (5,124) 624,051 589,453 (304,345) 285,108 Air craft 927,320 - 927,320 - - - Total 2,984,222 (1,303,047) 1,681,175 814,691 (404,801) 409,890 Reconciliation of property, plant and equipment - 2015 Opening Additions Depreciation Total balance Furniture and fixtures 124,782 8,146 (3,124) 129,804 Motor vehicles 285,108 352,173 (13,230) 624,051 Air craft - 927,320 - 927,320 409,890 1,287,639 (16,354) 1,681,175 Reconciliation of property, plant and equipment - 2014 Opening Additions Depreciation Total balance Furniture and fixtures 92,157 129,373 (96,748) 124,782 Motor vehicles 570,217 - (285,109) 285,108 662,374 129,373 (381,857) 409,890 2015 2014 N$ N$ 5. Trade and other receivables Value added tax 779,302 898,063 Advances to employees 18,500 56,000 797,802 954,063 6. Cash and cash equivalents Cash and cash equivalents consist of: Bank balances 1,428,163 667,179 7. Trade and other payables Amounts payable to NACOMA Section 21 66,165 96,400 Accrued bonus 143,440 - Accrued expenses 859,896 - 1,069,501 96,400 17 Namibia Coast Conservation and Management Project (NACOMA) Annual Financial Statements for the year ended 31 December 2015 Notes to the Annual Financial Statements 2015 2014 N$ N$ 8. Revenue Grants Received 10,457,892 10,155,317 9. Other income Profit and loss on sale of assets 102,464 40,000 Donations received 927,320 - 1,029,784 40,000 10. Expenses by nature Bank charges 36,827 29,407 Depreciation 16,354 381,858 Operational expenses 1,828,177 1,683,689 Consulting fees and salaries 6,514,102 2,988,874 Training and workshops 938,563 1,718,187 Matching expenses 1,582,288 3,234,269 Non-consulting expenses 1,112,459 405,690 12,028,770 10,441,974 11. Cash used in operations Deficit for the year (597,093) (246,657) Adjustments for: Depreciation 16,354 381,857 Net loss on disposal of property, plant and equipment (1,029,784) (40,000) Changes in working capital: Trade and other receivables 156,261 (614,703) Trade and other payables 973,101 96,400 (481,161) (423,103) 18