Escolar Documentos
Profissional Documentos
Cultura Documentos
2014 - 2015
CONTENTS
1. Organizational Profile
9. Audited Financial Statements for the Year Ended 30th June 2014
30
Report of the Council Members 32
Statement of Council Members Responsibilities 33
Report of the Independent Auditors on the National Council For Law Reporting
34
Statement of Financial Performance 35
Statement of Financial Position as at 30th June 2015
36
Statement of Changes in Net Assets 37
Statement of Cash Flows 38
Statement of Comparison of Budget and Actual Amounts
39
Notes to the Financial Statements 40
Workings on Notes to the Financial Statements
46
58
59
59
59
60
61
63
63
64
66
a.
b.
c.
ii
Organizational Profile
Organization:
Organization type:
Parent Act:
The National Council for Law Reporting Act, Act No. 11 of 1994.
Parent Ministry:
Mandate
Vision
Accessible Public Legal Information towards an Enlightened Society
Mission
To Provide Universal Access to Public Legal Information by Monitoring and Reporting on the
Development of Jurisprudence for the Promotion of the Rule of Law
Core values
The guiding principles in the operations of the Council are:
1. Integrity
2. Accountability
3. Reliability
4. Professionalism
5. Innovation
6. Citizen/Customer Focus
Slogan
Where legal information is public knowledge
Longet Terer
Name:
Hon. Lady Justice Roselyne Nambuye
DoB:
1952
Education:
Masters of Laws (LLM) University of Nairobi,
Bachelor of Laws (LLB) University of Nairobi,
Diploma in Law, Kenya School of Law
Designation:
Judge of the Court of Appeal, Council Member
Past experience: Judge of the High Court of Kenya
Name:
Hon. Lady Justice Lydia Achode
DoB:
1962
Education:
Bachelor of Laws (LLB) University of Nairobi,
Diploma in Law, Kenya School of Law
Designation:
Judge of the High Court, Council Member
Past experience: Registar of the High Court of Kenya, Chief Court Administrator
Name:
Mrs. Florence Mwangangi
DoB:
1963
Education:
Masters of Laws (LLM) University of Nairobi,
Bachelor of Laws (LLB) University of Nairobi,
Diploma in Law, Kenya School of Law
Designation:
Advocate , Council Member
Past experience: Partner, Mwangangi & Co. Advocates
Name:
Mr. Evans Monari
DoB:
1963
Education:
Bachelors of Laws (LLB),
Diploma in Law, Kenya School of Law
Designation:
Advocate, Council Member
Past experience: Partner, Daly & Figgis Advocates
Name:
Ms. Christine Agimba
DoB:
1963
Education:
Masters of Laws (LLM) University of Warwick,
Bachelors of Laws (LLB) University of Nairobi,
Diploma in Law Kenya, School of Law
Designation:
Deputy Solicitor General, Office of the Attorney General and Department of Justice,
Council Member
Past experience: Project Manager - Financial and Legal Sector Technical Assistants Project (FLSTAP)
Name:
Prof. Annie Patricia G. Kameri - Mbote
DoB:
1964
Education:
Doctorate of Law (Stanford University),
Masters of Laws (LLM) University of Warwick
Bachelors of Laws (LLB) University of Nairobi,
Diploma in Law, Kenya School of Law
Designation:
Dean, School of Law, University of Nairobi, Council Member
Past experience: Associate Professor, University of Nairobi
Name:
Mrs. Eva Githinji - Kimeiywo
DoB:
1975
Education:
Bachelor of Arts in Communication (Publishing), Printing Technology
Designation:
(Alternate to the Government Printer) Senior Printer, Proof Reading
Past experience: Printer, Govenment Press
Name:
DoB:
Education:
Designation:
1978
Masters of Laws (LLM) Durham University,
Bachelors of Laws (LLB) Bangalore University,
Diploma in Law, Kenya School of Law
Chief Executive Officer/Editor, Council Member.
he National Council for Law Reporting Act; the Public Finance Management Act 2012 Section
89, and the State Corporations Act Cap 446 of the Laws of Kenya, require the Council to prepare
financial statements in respect of that institution, which give a true and fair view of the state
of affairs of the Council at the end of the financial year/period and the operating results of the
Council for that year/period.
The Council Members are also required to ensure that the Council keeps proper accounting records, which
disclose with reasonable accuracy the financial position of the Council. The Council Members are also
responsible for safeguarding the assets of the Council.
The Council Members are responsible for the preparation and presentation of the Councils financial
statements, which give a true and fair view of the state of affairs of the Council for and as at the end of the
financial year (period) ended on June 30, 2015.
This responsibility includes:
i) Maintaining adequate financial management arrangements and ensuring that these continue to
be effective throughout the reporting period;
ii) Maintaining proper accounting records, which disclose with reasonable accuracy at any time
the financial position of the Council;
iii) Designing, implementing and maintaining internal controls relevant to the preparation and
fair presentation of the financial statements, and ensuring that they are free from material
misstatements, whether due to error or fraud;
iv) Safeguarding the assets of the Council;
v) Selecting and applying appropriate accounting policies; and
vi) Making accounting estimates that are reasonable in the circumstances.
The Council Members accept responsibility for the Councils financial statements, which have been
prepared using appropriate accounting policies supported by reasonable and prudent judgements and
estimates, in conformity with International Public Sector Accounting Standards (IPSAS), and in the manner
required by the National Council for Law Reporting Act, PFM Act and the State Corporations Act.
The Council Members are of the opinion that the Councils financial statements give a true and fair view of
the state of Councils affairs during the financial year ended June 30, 2015, and of the Councils financial
position as at that date. The Council Members further confirm the completeness of the accounting records
maintained for the Council, which have been relied upon in the preparation of the Councils financial
statements as well as the adequacy of the systems of internal financial control.
Nothing has come to the attention of the Council Members to indicate that the Council will not remain a
going concern for at least the next twelve months from the date of this statement.
he Council and Management recognise that a strong ethical culture is important for the realisation
of our corporate goals. Kenya Law works towards ensuring that Council Members and staff
members conduct themselves with integrity and professionalism and uphold the Kenya Laws
Code of Ethics. Kenya Law has a mechanism of receiving complaints from staff and members of
the public on cases of unethical conduct. There are also clear procedures on how such cases are to be
handled in a professional and independent manner.
Kenya Law continues to demonstrate leadership in providing accessible legal information to the country
by putting in place structures that enhance effective management and service delivery. The Members of
the Council for Law Reporting are responsible and accountable to the Government of Kenya, in ensuring
that Kenya Law complies with the law and the highest standards of corporate governance. There are ten
members of the Council all of whom, save for the Editor/CEO, are non-executive directors. During the
period under review, the Council met four times.
Kenya Law acknowledges that timely communication with stakeholders is critical. In this regard, the
Kenya Law publishes its information on the Kenya Laws website www.kenyalaw.org. The information is
regularly updated and includes information of the organizations activities, as well as the annual reports
and financial statements for the organisation. In undertaking its activities, the Council will continue to
engage its stakeholders and forge partnerships to ensure that it makes a positive difference in the society
while implementing its mandate.
In executing its mandate, Kenya Laws Council Members, management and staff are committed to
behaving ethically and responsibly, to contribute to economic development while improving the quality of
life of its employees and their families as well as the local community and the society at large.
10
Performance Review/Operational
Highlights July 2014 - June 2015
b)
c)
d)
11
2.2
2.3
2.4
Knowledge Sharing & Training of Judicial Officers, Advocates, Legal Researchers and Law
Students
Kenya Law seeks to promote knowledge, information and education in emerging issues in law
among judicial officers, the legal community and the public at large. Based on this, the department
has participated in the continuous Judicial Education of Judicial officers undertaken by the
Judiciary Training Institute. The department prepared and made a presentation titled Black Letter
Law Series: Statutory Law Updates at the Maanzoni Lodge.
The department also participated at the Kenyatta University School of Law (KUSOL) annual moot
court competition as judges. KUSOL has for the last three years hosted the annual All Kenyan
12
Moot Court Competition (AKMCC) that takes place in February of every year. This involves both
accredited as well as recognized Faculties of Law in Kenyan Universities. The process involved
providing mentorship to the students, marking the research papers and training the students on
how to write good research papers.
2.5
Monitoring Law Reform Issues emerging from the superior Courts of Record
Judicial opinions are an important tool for evaluating the constitutionality, propriety, effectiveness
and utility of statutory legislation as well as government administrative actions. Therefore, judicial
pronouncements relating to an aspect of constitutional or statutory law or administrative actions
that may be in need of reform are an important driver of the legal and administrative reform process.
Kenya Law is required by the National Council for Law Reporting Act to submit cases calling for
reform in the law to the Attorney General and the Law Reform Commission to drive the legal reform
process. This ensures Kenya Laws contributing to legal and administrative reforms by tracking
and reporting to law reform institutions judicial opinions containing pertinent pronouncements to
legal and administrative reforms. The department prepared a compilation of law reform issues
raised by the courts in the judgments for each quarter of the year and forwarded the same to the
Attorney Generals office and the Kenya Law Reform Commission.
2.6
2.7
13
Revision of Laws
Law Revision and Consolidation is the editorial process of incorporating newly enacted laws,
amendments and repeals to Laws passed by Parliament. This involves the updating and
consolidation of laws. It entails the day to day amendment of laws based on the supplements
published every Friday in the Kenya Gazette. It is a continuous process and statutes are updated
online and these statutes are available on the Laws of Kenya database on www.kenyalaw.org.
The Laws of Kenya database contains all the laws of the Republic of Kenya. It contains the full text
of Acts of Parliament (statutes) and regulations (subsidiary legislation) made under those Acts
with all the amendments to all the laws having been incorporated through the process of revision
and consolidation.
b)
c)
Publications.
The department rolled out the following publications;
i) Pocket size Constitution of Kenya 2010
Two sets of pocket size constitutions were published. The first was organizational arranged
with a total of 8,000 constitutions being printed. The second was done through JPIP
Funding with a total of 100,000 copies being printed. These were distributed so as to
provide universal access to public legal information by promoting civic awareness towards
an enlightened society and by disseminating knowledge through the publishing, printing and
distribution of the Constitution of Kenya, 2010.
The constitutions are distributed for free to the public, stakeholders, institutions and walk
in clients. The targeted areas included, general public, universities, Government Agencies,
Security Department.
ii) Grey Book 2014 Edition
Grey Book is a special loose leaf publication comprising of 15 selected statutes on procedural
Law. The statutes published are updated and amended up to 31st December, 2014. 1000
sets were published and printed.
14
15
4. ICT Department
During the 2014/2015 financial year, the ICT department undertook the following activities:
a)
b)
16
c)
d)
e)
Awards
I.C.T Association of Kenya Value Awards, 2014 - The ICTVA Awards seek to recognize, promote
and commend the excellent achievements to which Kenyan ICT professionals and organizations
contribute with a view to encourage local practitioners to develop innovative and creative ICT
solutions. The awards ceremony was held on December 3rd 2014 and the National Council for
Law Reporting bagged the Digital Content Excellence Award.
Connected East Africa Summit, 2015 - The Connected East Africa (formerly Connected Kenya)
Summit, aims at establishing a platform for collaboration, capacity building and knowledge sharing
between government and the I.C.T sector with a view of linking and hastening implementation of
government IT projects to world-class standards. The Summit was held from 30th March to 2nd
April where Kenya Laws Laws of Kenya database received a special mention for the technology it
uses and the versatility it offers end users.
17
5.2
5.3
18
Strategic Partnerships
In the year under review, the organization sought to build partnerships with various institutions to
meet the organizational mandate of provision of accessible legal information. Through the SQAPE
department, MoUs were signed with the following organizations:
a) Training and Consulting Associates
b) University of Nairobi
c) Kenyatta University
The department continues to seek out potential partners to work together with Kenya Law.
5.5
In the year under review, the department developed the inaugral organizational PMMU containing
targets committed to by Kenya Law through the Editor/Chief Executive Officer.
The PMMU was executed by the Editor/Chief Eecutive Officer at the launch of the Judiciarys
Perfomance Management and Steering Committee Report on 15th April, 2015 by the Hon. Chief
Justice and President of the Supreme Court.
Kenya Laws PMMU will be used to evaluate the organizational perormance in the financial year
2015/2016 through the evaluation of negotiated and agreed upon targets.
19
In the year under review, the Marketing and Communications Department had exhibition booths at
various legal events. The trade fairs and conferences served to increase awareness and elevated
the Kenya Law brand. They also assisted the department to analyse the market situation and to
prepare the ground for selling new products.
The events and conferences included;
6.1.1 Law Society of Kenya (LSK) Continuing Professional Development (CPD) events.
The department participated in ten (10) LSK CPDs by showcasing and selling the Kenya
Law products to the lawyers who attended. They included the CPDs in Nairobi, Eldoret,
Migori, Bungoma, Thika, Nakuru and Machakos.
6.1.2 Kenya Law at the Law Society of Kenya (LSK) Annual Conference, 2014
Lawyers from Kenya Law, led by the C.E.O Mr. Longet Terer, joined their colleagues in the
legal profession at the LSK Annual Conference, which was held at Leisure Lodge Resort,
South Coast from 14th to 16th August 2014. Kenya Law also had an exhibition tent at the
conference where the various publications and products of the organization were displayed.
The Kenya Law Mobile App was the Centre of attention with the majority of the delegates
enquiring how it works and some having the Mobile app. Installed on their phones.
6.1.3 LSK Legal Aid Week
Kenya Law joined over 7,000 lawyers
country wide to mark the 2014 Legal Aid
week at the Milimani Law Courts, Nairobi.
The event was officially opened by the Hon.
Chief Justice and President of the Supreme
Court, Dr. Willy Mutunga, the Chairman of
the National Council For Law Reporting
(Kenya Law). Members of the Public were
taken through Kenya Laws mandate and
were also made aware of the organizations
vision, which is to promote the accessibility
of Public Legal information towards and
enlightened society.
Kenya Law Marketing Assistant Ms. Caroline Wairimu(right) attends to a member
of Public at during the Legal Aid week held at Milimani Law Court, on 27th October
2014
20
21
Sales Report
The total sales for the FY 2014/2015 were 6,770,504.00. This was a 53.8% increment from the
financial year 2013/2014, which recorded total sales of Kshs. 3,644,845.00.
Some of the factors that led to this improvement were the increased departments participation in
the Law Society of Kenyas Continuous Professional Development programs and conferences as
well as the recruitment of three sales executives.
The following are the monthly sales figures for the FY 2014/2015
Month
July 2014
3,166,300.00
August 2014
520,640.00
September 2014
152,200.00
October 2014
405,420.00
November 2014
82,200.00
December 2014
134,300.00
January 2015
5,300.00
February 2015
116,300.00
March 2015
531,200.00
April 2015
219,100.00
May 2015
254,400.00
June 2015
757,450.00
Total
22
Total In Kshs
6,770,504.00
4
-2
01
Sales in Ksh
Ju
n
-2
01
20
1
r-
M
ay
4
Ap
-2
01
4
M
ar
-2
01
4
Fe
b
-2
01
Ja
n
-2
01
De
c
-2
01
4
No
v
20
1
4
Oc
t-
-2
01
Se
p
-2
01
Au
g
Ju
ly
-2
01
3,500,000.00
3,000,000.00
2,500,000.00
2,000,000.00
1,500,000.00
1,000,000.00
500,000.00
23
Training/ Conferences
The department through the organizational annual training plan facilitated for the training of over
40 members of staff in various disciplines.
Some of the trainings areas undertaken included:
a. Leadership and Management 6 members of management attended training
courses, which imparted skills on Leadership development, Change Management and
management training.
b. Supervisory Development Skills - 7 members of staff who supervise other departmental
staff were sponsored to attend the Supervisory Development Skills course at the Kenya
School of Government under the Judicial Performance Improvement Project (JPIP)
c. Continuous Professional Development Courses At least 10 members of staff
underwent continuous professional training courses in their specific professions
including Law, Human Resources, Finance and ICT.
The total amount utilized in the facilitation of staff training in the year was Kshs.3, 865, 833.85. The
following is a comprehensive list of organizational training courses attended by staff members in
the year under review.
Trainings Undertaken By Kenya Law Staff Members
NO
TRAINING DATES
TRAINING VENUE
ESAMI
South Africa
Strathmore
Nairobi
Nairobi
ESAMI
Arusha
August 6 -7 , 2014
Nanyuki
LSK
Mombasa
Financial Reporting
Nairobi
Kenya Law,
African LII
South Africa
Legislative Drafting
TCA
Nairobi
10
Annual HR Conference
IHRM
Oct 23 24 , 2014
Nairobi
11
Mombasa
24
SAFLII
th
th
rd
th
NO
12
Nairobi
13
Leadership Training
Landmark Forum
Nairobi
14
Tax Workshop
Institutions,
Deloitte
March 12 13 , 2015
Nairobi
15
KSG, Nairobi
Nairobi
16
ICPAK Conference
ICPAK
16 April, 2015
Nairobi
17
Nairobi
18
HR Congress
IHRM
Mombasa
19
Access
Business
Conference
Management 1
ABMC
Mombasa
For
Government 2
TRAINING DATES
th
rd
th
th
th
TRAINING VENUE
7.2
7.3
Employee Engagement
In the financial year 2014/2015, the Human Resources department sought to engage organizational
employees and enhance teambuilding and morale through the following activities:
a. Annual Teambuilding - The teambuilding was undertaken between 13th 16th
November 2014.
b. Departmental meetings
c. Monthly staff meetings
d. Corporate Social Responsibility (CSR) events
7.4
7.5
Pascal Othieno
Wambui Kamau
Janette Watila
Andrew Halonyere
25
7.6
7.7
7.8 Conferences
In the period under review, the department participated in various conferences to enhance
knowledge of its member in the area of Human Resource and Administration
26
8. Finance Department
The mandate of the finance department is to provide Kenya Law with strategic financial support for
business and operational planning. During the FY 2014/2015, the Finance Department undertook the
following activities:
8.1
8.2
8.3
27
28
29
Telephone: +254-20-342330
Fax: +254-20-311482 P.O. Box 30084-00100
E-mail: oag@oagkenya.go.ke NAIROBI
Website: www.kenao.go.ke
30
compliance with Article 229(7) of the Constitution of Kenya. The audit was conducted in accordance with
International Standards of Supreme Audit Institutions (ISSAIs). Those standards require compliance with
ethical requirements and that the audit be planned and performed to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidenced about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditors judgment, including the
assessment f the risks of material misstatement of the financial statements whether due to fraud or
error. In making those risk assessments, the auditor considers internal con troll relevant to the Councils
preparation and fair presentation of the 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 Councils internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness
of accounting estimates made by the management, as well as evaluating the overall presentation of the
financial statements.
I believe that the audit evidence obtained is sufficient and appropriate to provide a basis for my audit
opinion.
Opinion
In my opinion, the financial statements present fairly, in all material respects, the financial position of the
National Council for Law Reporting as at 30 June 2015, and of its financial performance and its cash flows
for the year then ended, in accordance with International Public Sector Accounting Standards (Accrual
Basis) and comply with National Council for Law Reporting Act, 1994 (Revised. 2012).
31
The results of the National Council for Law reporting for the year ended June 30, 2015 are
set out on page 1 below.
Council Members
The members of the Council who served during the reporting period are shown on page vi in accordance
with the NCLR Act No. 11 of 2001.
Auditors
The Auditor General is responsible for the statutory audit of NCLR in accordance with the Public Audit Act
Cap 412.
By Order of the Council
Council Secretary
Nairobi
Date: ..
32
_______________
Member
______________
Secretary
33
Report of the Independent Auditors on the National Council For Law Reporting
We have audited the accompanying (consolidated) financial statements of The National Council For Law
reporting for the year ended June 30 2015, which comprise:
i. A statement of financial performance;
ii. A statement of financial position;
iii. A statement of changes in net assets;
iv. A statement of cash flows;
v. A statement of comparison of budget and actual amounts and
vi. A summary of significant accounting policies and other explanatory information.
Managements responsibility for the financial statements
The Councils Management is responsible for the preparation and fair presentation of the financial
statements in accordance with International Public Sector Accounting Standards, and for such internal
control as the management determines is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud or error.
Auditors responsibility
Our responsibility is to express an opinion on the financial statements based on our audit. We conducted
our audit in accordance with the International Standards on Auditing. Those standards require that we
comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditors judgement, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the Councils
preparation and fair presentation of the 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 Councils 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 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 accompanying financial statements for the year 2014/2015 and its financial performance
as well as cash flows for the year then ended in accordance with International Public Sector Accounting
Standards.
21/12/2015
Auditor General
34
Date:
259,941,190
260,620,479
15,238,493
20,751,376
1,667,250
897,750
276,846,933
282,269,605
6,810,504
3,644,845
Cost of Sales
(4,517,467)
(2,606,639)
Other Income
Gross Profit
2,293,037
1,038,206
Other Incomes
1,313,962
1,248,198
3,606,999
2,286,402
Total revenue
280,453,932
284,556,007
Expenses
Employee Costs
119,928,333
118,406,771
1,415,000
1,572,000
16,660,439
8,449,454
6,261,366
5,459,600
Contracted services
32,343,053
58,852,840
Donation s in Kind
27,000
1,130,986
General expenses
86,701,687
81,010,763
Finance costs
10
191,458
176,988
Total expenses
263,528,336
275,059,402
Other gains/(losses)
11
(14,406)
(50,312)
16,911,190
9,446,292
16,911,190
9,446,292
The notes set out on pages 22 to 40 form an integral part of the Financial Statements
35
Current assets
12
2,201,687
1,997,556
13
11,507,235
13,005,740
13
687,212
685,596
Inventories
14
156,628,184
157,232,305
171,024,318
172,921,197
Non-current assets
15
79,431,801
68,292,956
Intangible assets
16
7,308,338
8,241,423
17
3,780,255
3,780,255
90,520,394
80,314,633
Total assets
261,544,712
253,235,831
Liabilities
Current liabilities
18
17,760,222
18,298,182
Bank Overdraft
287,233
1,837,117
3,880,000
3,020,000
Taxation
21,927,455
23,155,300
Pension Contributions
19
1,051,746
2,879,201
Total liabilities
22,979,201
26,034,501
Net assets
Capital Fund
23,565,276
23,565,276
160,445,161
165,992,168
Retained Earning
54,555,075
37,643,886
238,565,512
227,201,330
261,544,712
253,235,831
The Financial Statements set out on pages 17 to 21 were signed on behalf of the Board of Directors by:
36
Capital Reserve
Kshs
Retained Earnings
Kshs
Other Reserves
(Capital Donations
Kshs
Total
Kshs
23,565,276
28,197,593
67,588,203
119,351,072
9,446,292
9,446,292
106,724,475
106,724,475
(8,320,510)
(8,320,510)
23,565,276
37,643,885
165,992,168
227,201,330
16,911,190
16,911,190
(5,547,007)
(5,547,007)
160,445,161
238,565,512
Depreciation:
Depreciation: Donated
Computers
Balance as at 30 JUNE 2015
23,565,276
54,555,075
37
2014 - 2015
Kshs
2013 - 2014
Kshs
16,911,190
9,446,292
Depreciation Expense
14,833,354
6,389,098
Amortization Expense
1,827,085
2,060,356
33,571,629
17,895,746
1,498,504
4,373,700
(1,616)
84,219
3,518,488
Increase/Decrease in Inventories
604,121
10,248,701
(537,961)
(3,049,187)
860,000
860,000
(1,827,456)
(667,835
595,593
2,304,728
Add Back:
38
(31,519,206)
(39,949,560)
Purchase of Software
(894,000)
(2,322,865)
(32,413,206)
(42,272,425)
1,754,016
(22,071,951)
160,439
22,232,409
1,914,454
160,439
Adjustments
2014-2015
Kshs
Final budget
2014-2015
Kshs
Actual on
comparable basis
2014-2015
Kshs
260,620,479
260,620,479
259,941,190
(679,289)
(0.26)
23,274,200
-12,883,642
10,390,558
6,810,504
(3,580,054)
(34.45)
Other Income
25,064,521
-7,222,201
17,842,320
18,219,705
377,385
2.12
Total income
308,959,200
-20,105,843
288,853,357
284,971,399
(3,881,958)
Compensation of employees
121,354,900
-1,212,900
120,142,000
119,928,333
(213,667)
(0.18)
117,600,000
-19,185,000
98,415,000
97,550,289
(864,711)
(0.88)
187,000
187,000
191,458
4,458
2.38
Rent paid
19,778,000
19,778,000
19,204,674
(573,326)
(2.90)
Other payments
49,889,300
292,057
50,181,357
31,158,455.00
(19,022,902)
(37.93)
150,000
150,000
27,000
(123,000)
(82.00)
308,959,200
-20,105,843
288,853,357
268,060,209
(20,793,148)
16,911,190
16,911,190
Revenue
Government grants and
subsidies
Expenses
Finance cost
Performance
difference
2014-2015
Kshs
% Variance
Performance
difference
2014-2015
There was 34.45% under collection of Income from sales of publications occasioned by the inability by our
main institutional customers including the Judiciary and the State Law Office to commit on orders due to
insufficient budgetary allocations for their Library votes.
The under expenditure of 37.93% under other payments is attributed to procurement delays of the premium
case law database under the JPIP programme which had not been completed by the end of the financial.
The 82% underspend in Grants, donations and Subsidies was due to reduced donations of publications
e.g. Pocket sized constitutions to various stakeholders.
39
The Public Finance Management (PFM) Act 2012 Section 192 provided the setting up of the Public Sector
Accounting Standards Board (PSASB). The Cabinet Secretary National Treasury, gazetted members of
the Board through Gazette Notice No. 1199 of 28 February, 2014. Following the Boards approval on
the adoption of the International Financial Reporting Standards ( IFRS) for state organs operating as
Commercial Business Entities and the International Public Sector Accounting Standards (IPSAS) for noncommercial entities, The National Council for Law reporting financial statements have been prepared in
accordance with and comply with International Public Sector Accounting Standards (IPSAS).
The financial statements are presented in Kenya shillings, which is the functional and reporting
currency of the Council and all values are rounded to the nearest thousand (Ksh 000). The accounting
policies have been consistently applied to all the years presented.
The financial statements have been prepared on the basis of historical cost, unless stated otherwise.
The cash flow statement is prepared using the indirect method. The financial statements are prepared
on accrual basis.
2.
40
b)
c)
d)
41
42
Capital Fund which is the sum of total assets that were transferred to NCLR
on its delinking from the Judiciary in July 2006. This is treated as the start-up
Capital of the institution.
Retained earnings which are the sum of all accumulated surpluses and deficits
National Council for Law Reporting Annual Report 2014 - 2015
43
of retirement benefits are charged against income in the year in which they become
payable.
A Gratuity is payable to the Editor on completion of a periodic contract. This is
budgeted for in the year it falls due for payment.
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand, cash held in M-Pesa Account,
cash at bank, short-term deposits on call and highly liquid investments with an
original maturity of three months or less, which are readily convertible to known
amounts of cash and are subject to insignificant risk of changes in value. Bank
account balances include amounts held at various commercial banks at the end of
the financial year. For the purposes of these financial statements, cash and cash
equivalents also include short term cash imprest and advances to authorised public
officers and/or institutions which were not surrendered or accounted for at the end
of the financial year.
j) Comparative figures
Where necessary comparative figures for the previous financial year have been
amended or reconfigured to conform to the required changes in presentation
according to the IPSAS accrual method.
k) Financial Instruments: Recognition and Measurement
The Council has ensured recognition and measurement of financial assets; financial
liabilities and contracts to buy or sell non-financial items have been captured in line
with IPSAS 29.
l) Related parties
The Council regards a related party as a person or an entity with the ability to exert
control individually or jointly, or to exercise significant influence over the Entity,
or vice versa. Members of key management are regarded as related parties and
comprise the CEO, Deputy CEO and senior managers. The policy of the Council is
that all related parties should declare their interest at all times in any institutional
process that might occasion a conflict of interest if they participated in the same
without declaring their interest. This will then allow management to decide on the
best way to execute the process in a manner that transparency and accountability
is seen to have been adhered to.
m) Significant judgments and sources of estimation uncertainty
The preparation of NCLRs financial statements in conformity with IPSAS requires
management to make judgments, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities, and the disclosure of
contingent liabilities, at the end of the reporting period. However, uncertainty about
these assumptions and estimates could result in outcomes that require a material
adjustment to the carrying amount of the asset or liability affected in future periods.
i)
44
45
2014
Kshs
259,941,190
260,620,479
15,238,493
20,751,376
1,667,250
897,750
276,846,933
282,269,605
Amount recognized to
Statement of Comprehensive
Income
Government of Kenya
259,941,190
260,620,479
Judiciary performance
improvement Project
15,238,493
987,750
Transparency International
1,667,250
897,750
276,846,933
282,269,605
Total
Amount
deferred
Grants in kind from JPIP are non-cash Income that refers to the monetary value of Assets and expenses for items procured by and paid
from the Judiciary Performance Improvement Programme (JPIP). Specifically, it includes training expenses, rent expenses and service
charge paid for under the JPIP. The expense items and Assets in this regard have been captured in the statement of financial performance
and matched to this item of income.
2. Other Incomes
2015
Kshs
2014
Kshs
1,313,962
1,248,198
Total
1,313,962
1,248,198
2015
Kshs
2014
Kshs
43,171,206
42,483,486
Medical aids
20,302,437
17,453,500
8,388,000
8,338,000
28,560,000
28,140,000
Airtime Allowance
1,708,500
1,597,000
3. Employee costs
46
140,400
300,000
Extraneous Allowance
3,660,000
3,415,000
Entertainment Allowance
3,540,000
3,245,000
3,120,000
3,490,000
1,567,416
988,000
911,335
Responsibility Allowance
1,620,000
1,490,000
Security Allowance
1,857,500
1,660,000
90,000
1,169,079
982,806
Training Expenses
1,633,626
3,102,828
209,985
119,928,333
118,406,711
2015
Kshs
2014
Kshs
1,415,000
1,572,000
1,415,000
1,572,000
2015
Kshs
2014
Kshs
14,833,354
6,389,098
Intangible assets
1,827,085
2,060,356
16,660,439
8,449,454
2015
Kshs
2014
Kshs
263,740
866,244
4,309,496
3,032,961
334,500
338,380
1,106,060
978,015
247,570
244,000
6,261,366
5,459,600
Gratuity
Leave Allowance
Shift Allowance
WIBA
Employee costs
47
7. Contracted services
2015
Kshs
2014
Kshs
21,948,351
31,331,709
6,650,711
15,353,129
3,743,991
6,168,002
32,343,053
58,852,840
2015
Kshs
2014
Kshs
27,000
1,130,986
27,000
1,130,986
9. General expenses
48
2015
Kshs
2014
Kshs
1,958,885
1,965,719
Audit Fees
860,000
850,000
116,554
10,400
Parking Fees
1,409,470
250,560
Telephone Expenses
1,546,127
1,769,434
244,966
273,021
454,520
376,421
Domestic Sundry
1,287,045
1,372,213
Foreign Sundry
284,749
205,146
Foreign Travel
1,675,000
1,757,101
Domestic Travel
4,355,322
4,406,266
Domestic Accommodation
5,232,196
4,445,486
Foreign Subsistence
1,993,100
5,365,109
Domestic Subsistence
5,342,556
8,009,732
Rent Expense
19,204,674
10,555,464
3,558,299
Casual Labour
1,519,152
3,753,000
Catering Costs
3,596,595
3,837,566
692,850
4,538,678
1,027,203
1,851,701
2,394,172
998,511
504,000
1,677,891
337,340
159,259
1,702,256
17,251,020
17,850,655
868,103
470,048
2,725,100
3,354,948
2,970,228
1,590,205
896,434
86,701,687
81,010,763
2015
Kshs
2014
Kshs
Bank Charges
191,458
176,988
191,458
176,988
2015
Kshs
2014
Kshs
Bank Charges
14,406
50,312
14,406
50,312
2015
Kshs
2014
Kshs
287,233
1,837,117
25,813
399,415
2,064,124
1,482,861
111,750
115,280
2,201,687
1,997,556
49
12 (a) Banks
Name of the Bank
Currency
1103135449
KSH
1131298241
USD
25,813
399,415
0451230484
KSH
2,064,124
1,482,861
2,089,937
1,882,276
Total
2015
Kshs
2014
Kshs
2015
Kshs
2014
Kshs
Cash At hand
111,750
115,280
Total
111,750
115,280
2015
Kshs
2014
Kshs
11,507,235
13,005,740
687,212
685,596
12,194,447
13,691,336
14. Inventories
50
2015
Kshs
2014
Kshs
153,331,234
154,128,702
3,099,474
2,860,450
197,476
243,153
156,628,184
157,232,305
Kshs
Kshs
At 1 July 2012
39,503,827.00
2,047,139.00
Additions
8,198,580.00
790,915.00
Disposals
At 30 June 2013
Additions
961,806.00
0.00
-
Total
Kshs
Kshs
1,900,419.00
44,413,191.00
1,541,595.00
10,531,090.00
31,305,247.00
2,838,054.00
961,806.00
3,442,014.00
38,547,121.00
7,647,077.31
26,666,563.60
769,444.80
6,794,015.70
41,877,101.00
Disposals
At 30 June 2014
Shs
Office Equipment
38,952,324.31
31,299,226.02
615,555.84
8,756,919.64
79,624,025.81
(192,361.20)
(516,302.10)
(5,861,061.70)
Depreciation and
impairment
At 1 July 2013
Depreciation
(4,868,593.00)
(283,805.40)
At 30 June 2014
Depreciation
0.00
(3,506,918.64)
Disposals
(1,764,482.57)
27,621,254.00
31,299,226.02
Additions
14,064,802.29
13,994,197.18
At 30 June 2015
41,686,056.29
(962,807.96)
(6,388,098.13)
At 30 June 2014
Disposals
(153,888.96)
615,555.84
0.00
-
45,293,423.20
8,756,919.64
68,292,955.50
3,460,206.50
31,519,205.97
615,555.84
12,217,126.14
99,812,161.47
Depreciation and
impairment
At 30 June 2015
Depreciation
13,895,338.20
Disposals
At 30 June 2015
4,529,342.33
27,790,718.09
123,111.17
1,832,569.00
20,380,360.70
40,764,080.87
492,444.67
10,384,557.14
79,431,800.77
10,301,799
(2,060,356)
At 30 June 2014
8,241,423
894,000
51
9,135,423
(1,827,085)
Impairment loss
(0)
7,308,338
7,308,338
At 30 June 2014
8,241,423
2015
Kshs
2014
Kshs
3,780,255
3,780,255
3,780,255
3,780,255
2014
Kshs
4,997,710
9,190,250
VAT
414,746
94,350
Donations Payable
165,000
279,000
HELB Payable
39,367
78,102
Insurance Payable
48,981
60,006
Loan Payable
671,156
135,194
35,350
1,600
77,180
Payable to RHC
203,794
203,794
NSSF Payable
56,400
221,000
1,323,575
2,439,910
Welfare Payable
205,100
482,054
Other Payables
9,632,793
5,001,993
17,760,222
18,298,183
Mortgage Payable
NHIF Payable
52
2014
Kshs
350,582
959,734
701,164
1,919,467
1,051,746
2,879,201
Capital commitments at the end of the year for which no provision has been made in these financial
statements. This was in relation to renovation works in our new office premises for works in progress. The
payment of which is to crystallize in the financial year 2015/2016.
2015
Kshs
Authorised and contracted for
Authorised but not contracted for
2014
Kshs
9,632,793 34,719,035
-
_________ _________
9,632,793 34,719,035
======== =========
Operating lease commitments represent rentals payable by the Council for its leased office premises.
Operating lease payments made during the year amounted to Kshs. 19,760,138.00 (Nineteen Million
Seven hundred and Sixty thousand One hundred and thirty eight shillings only).
At the end of the reporting period, the company had outstanding commitments of Kshs.49, 493, 786.60
under non-cancellable operating leases in relation to the lease of office premises.
22. Financial Risk Management
The NCLRs financial risk management objectives and policies are detailed below:
a) Significant accounting policies
Risk is an integral part of operations in any institution. NCLR is exposed to various risks,
including credit risk and liquidity risk. The risk management strategy is based on a clear
understanding of various risks, disciplined risk assessment and measurement procedures
and continuous monitoring.
53
Total Fully
Amount Performing
Past due
Impaired
Kshs Kshs Kshs Kshs
1,914,454
1,948,209 - 11,507,235
11,507,235 - 687,212
687,212 - ========= ========= ======== ========
45,159
45,159 - 16,785,995
16,785,995 - 685,596
685,596 - =========
d) Liquidity risk
Prudent liquidity risk management includes maintaining sufficient cash to meet company
obligations. Ultimate responsibility for liquidity risk management rests with the council
board members, which has built an appropriate liquidity risk management framework for the
management of the councils short, medium and long-term funding and liquidity management
54
requirements. The council manages liquidity risk by maintaining banking facilities through
continuous monitoring of forecast and actual cash flows.
The table below analyses the councils financial liabilities that will be settled on a net basis
into relevant maturity groupings based on the remaining period at the balance sheet date to
the contractual maturity date. The amounts disclosed in the table below are the contractual
undiscounted cash flows. Balances due within 12 months equal their carrying balances, as
the impact of discounting is not significant.
Less than
1 month
Kshs
Between
1 3 months
Kshs
Over
3 months
Kshs
At 30 June2015
Trade payables
9,632,793
-
Taxation 5,412,456
Others 6,882,206
21,927,455
=========
========
=========
At 30 June2014
Trade payables
5,001,993
-
Taxation
9,284,600 - Others 8,868,707
23,155,300
=========
========
=========
e) Market risk
(i) Price risk
NCLR does not hold investments that would be subject to price risk; hence this
risk does not directly affect our net worth.
(ii) Fair value interest rate risk
NCLR does not hold interest bearing assets or liabilities subject to fair value
interest rate risk; hence this risk does not directly affect our net worth.
(iii)
NCLR receives grants from foreign countries. The funds are quoted in US Dollars
and in Euros. This exposes NCLR to losses that may arise from fluctuation in
the foreign currency exchange rates. The NCLR operates foreign currencies
bank accounts for all receipts and payments in foreign currencies to minimise
exposure to exchange risks.
55
The carrying amounts of NCLRs foreign currency denominated monetary assets at the balance sheet
date are as follows:
2015
2014
Kshs Kshs
Assets
Bank and cash balances
US Dollars
25,813
399,415
Total
25,813
399,415
23,565,276
165,992,168
37,633,886
__________ _________
Net Assets
238,565,512
227,191,330
24. Related Parties
Key management Salaries and Allowances
2015
Kshs
29,886,559
2014
Kshs
34,090,433
56
There were no issues raised by the external auditor from the previous financial year(s) that were still
outstanding as at 30th June 2015.
Date: 08/12/15.
Date: 08/12/15.
57
10
The challenges and risks faced by Kenya Law in the year FY 2014 -2015 included:
1. Budgetary constraints leading to:
a. Insufficient Human Resource in the technical departments to cater for the growing work
of Law Reporting and Law Revision
b. Staff skills and competency gaps due to highly specialized training required
c. Obsolescence of computer hardware and technology
d. Inability to meet clients demand for products and services
2. Versatile nature of IT and the dynamism of the sector requires constant hardware and
software changes
3. Unstable Electricity supply (Lack of clean power from the source)
4. Threats relating to cyber security and hacking both internally and externally
5. Continuous need for enhanced internet bandwidth requirements
6. Competition from private sector organizations with similar products in the market
7. Obsolesce of some legal publications that may have been repealed leading to accumulation
of stock.
8. Delay in receipt of products from suppliers and printers
9. Untimely/slow publishing of the Kenya Law Review Journal due to slow response from
prospective authors and peer reviewers
10. Delay in Publication of supplements from Govenment Printers
11. Delay in sourcing and collection of County Legislation
58
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59
2.
Publications
In the year 2010, Kenya Law published four new sectoral volumes in addition to the Grey book. These
volumes include:
a. Public Finance: A compilation of 17 statutes on Public Finance
b. Land Law: 27 statutes on land and related laws.
c. Commercial Law: 23 Statutes running into two volumes on commercial Laws.
d. Family Law: A volume of 14 statutes touching on Family, Marriage and Succession Laws.
These laws have been in high demand since and the need to print more copies is present. Specifically,
this financial year, there will be a reprint of the Public Finance, Commercial and Land Law volumes.
For the clients who had previously bought the 2010 publications, there will be amendments printed
so as to ensure that these volumes do not become obsolete. The amendments will be in loose leaf
booklets labelled service issues.
3.
60
61
3. Conduct Customer Satisfaction Survey. This will measure the overall satisfaction level of customers;
know how Kenya Law is faring compared to our competitors; strengths and areas of improvement
4. Develop a Customer Care Policy
5. Enhanced visibility through marketing campaigns, advertising on our Social Media pages and
Bench Bulletin as well as participating in various activities.
62
12
eing aware of our obligation in the advancement of society, we care for the wellbeing of one another
and of the environment and we will align our processes, services and products with the attainment
of positive social outcomes.
Corporate responsibility is an integral part of how our business operates. It reflects the inescapable reality
that if the values of a business fail to resonate with the values of society, it is endangering long-term
prosperity. Kenya Law is committed to identifying and lives with the values, which are important to our
colleagues and customers.
The CSR projects for the financial year 2014/2015 included
a. Standared Chartered Marathon
Standard Chartered Bank hosted
the 12th Edition of the Standard
Chartered Nairobi Marathon on 26th
October 2014. The Bank, with the support
of event organizers, Athletics Kenya,
has built an event that has become
internationally renowned and has
placed Kenya on the international map.
The Marathon is the flagship project
for theSeeing is Believingcommunity
initiative that aims at raising funds
for the needy in the community. Last
years event attracted over 23,000
participants from all walks of life.
63
64
encroachment
as the city
outgrows itself.
Its proximity to
the capital has
exposed
the
Park and its
rich ecosystem
to
massive
environmental
risks.
It is for these
reasons that
Kenya
Law
partnered with
the
Nairobi
GreenLine
Trust, a project
that
invites
industries,
Kenya Law Marketing & Communication Assistant Carolyne Wairimu (In Kenya Law polo shirt) explains to members of the public Kenya
Laws mandate during the Nairobi International Trade Fair held from 29th September to 5th October 2015.
conservationists, corporate
organizations and the public
to join the campaign to grow 300,000 trees from the Cheetah Gate in Athi River, a distance of
32km, to the Carnivore restaurant.
This is an opportunity for staff to support community events in a very practical way. Its
wonderful that Kenya Law is part of the dream to make Nairobi National Park not just a
greener place but to also bring back wildlife to the city. Said Mr. Terer.
The initiative leaves a visible legacy, which will see the organization make the activity an
annual tradition.
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mykenyalaw
@mykenyalaw
Mykenyalaw
National Council for Law Reporting (Kenya Law) - A service State Corporation in the Judiciary