45Th AGM MEETING TREASURER S REPORT and BUDGET ESTIMATES

1Treasurer’s Report

45 th AGM MEETING TREASURER ‘S REPORT AND BUDGET ESTIMATES

Good afternoon my fellow co-operators,

Ladies and gentlemen, it gives me great pleasure in welcoming you all to this 45th Annual General Meeting of Intercon Sacco.

As you all know; it is a requirement in our bylaws, I present to you, the treasurer report summarizing our financial performance for the year ending 2014 and also present to the members the revised budget for the year 2015 and for preceding year 2016 in line with our traditions. This gives us an fore sight of what to expect in 2015 & 2016 in line with the current trends and therefore inform members how much income we expect, expected expenses and how much surplus we expect to make.

We received a clean and unqualified opinion from the auditor Theuri & Ndegwa Associates, and, as per requirements, the accounts were approved by the Commissioner of Cooperatives as required by Sacco Act.

We recorded some very positive changes in 2014, I would like to point out some of key performance indicators in our financials as follows:-

2013 2014 Growth over Last Year Membership 304 360 Members Deposits 58,746,006 61,993,918 6% Loans Advances 40,435,012 44,853,197 11% Total Income 6,897,776 7,511,844 9% Expenditure 1,793,990 1,799,839 0% Net Surplus 5,103,786 5,712,005 12% Interest on members' Savings 6.5 % 8.00 %

As you can see we achieved double digits growth in loans advances and net surplus, this was through prudent management and we expect to improve the results this year 2015 and next year 2016.

Treasurer Proposal

Last but not least, I would like to make the following proposal. Last year we saw an increase of minimum balance from 2000/= to 3000/= , this in turn has l improved our cash flow for the year and subsequently improved loans disbursement and you seen from above we were able to increase advancement of loans by 11%. (4.4 m). In order for us to see further growth and maintain the momentum, I propose we increase the minimum balance by a modest figure of 500/= to a minimum of Kshs.3500/= per month. I also propose this increase of 500/= to be done 2Treasurer’s Report

every year. This will enable us advance 2 million shillings more in loans every year, and will help in easing the queues, and of course increase our dividends.

Budget Estimates

Finally , I would like to take you through the budgeted Income & expenditure statement estimates – for the year 2015 & 2016, you will notice 2015 is a revision of what had been presented during our last AGM (44th AGM).

SUMMARY INTERCON SACCO LTD Budgeted Income statement as at 31-Dec-2014 & 2015 Actuals Actuals Revised Budget Proposed Budget 2013 2014 2015 2016 6,897,776 Total income 7,511,844 7,781,100 7,483,000 54,320 Total administrative expenses 93,581 76,400 63,000 557,840 Total members’ expenses 661,380 678,000 680,000 426,250 Total staff expenses 460,981 892,600 600,000 62,000 Total committee expenses 78,700 152,800 155,000 557,880 Total financial expenses 368,537 296,700 301,000 135,500 Total professional & legal 136,660 177,500 181,000 expenses 1,793,990 Total Expenditure 1,799,839 2,274,000 2,289,000 Some of the items which will be taken care of by this budget include among others.

 Ensure members loans s are adequately covered by insurance in case of demise of a member, last year we did not have a claim therefore the premiums will be discounted this year.

 Engage an second employee on a temporary basis.

 Ensure we have a raffle during AGM meeting with a least 4 winners each at Kshs.2500/=

 Set up a website to improve awareness, design and print brochures and on-boarding kit for new members

 Participate in a CSR activity to help less privileged as well as attend Ushirika day celebrations.

 Education committee to organize training for Sacco members on financial planning and other financial management skills.

I would like to thank you for listening to me, and thank I fellow committee members for their support and to you all member for coming today and also, giving me an opportunity to be at your service.

Thank you and God bless you 3Treasurer’s Report

Joseph Wangunyu

Treasurer Intercon Sacco.