ANNUAL FINANCIAL STATEMENTSabacus.devee.co.za/ArchiveFiles/AuditReports/AFS Provident 2012.pdfABACUS...

ANNUAL FINANCIAL STATEMENTS (Privately administered funds)

NAME OF RETIREMENT FUND: ABACUS UMBRELLA PROVIDENT FUND

FSB REGISTRATION NUMBER:

36968

SARS APPROVAL NUMBER:

18/20/4/41314

For the period: 1 SEPTEMBER 2011 to 31 AUGUST 2012

CONTENTS

Schedule Page

A * Regulatory information 2

B * Statement of responsibility by the board of trustees 4

C * Statement of responsibility by the principal officer 6

D * Report of the independent auditors 7

E Report of the board of trustees 8

F Statement of net assets and funds 12

G Statement of changes in net assets and funds 13

HA Notes to the financial statements 14

HB * Report of the valuator 21

I Report by the independent auditors to the Registrar of Pension Funds on factual findings

22

IA Schedule pertaining to annual financial statements 29

IB Assets held in compliance with Regulation 28. 30

Assurance report of the independent auditors to the Registrar of Pension Funds 32

* (Not subject to audit)

ABACUS UMBRELLA PROVIDENT FUND - 36968

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SCHEDULE A REGULATORY INFORMATION FOR THE PERIOD ENDED 31 AUGUST 2012

REGISTERED OFFICE OF THE FUND

Postal address: P O Box 829, Wilgeheuwel, 1736

Physical address: A3 Willow Crest Off Estate, 655 Van Hoof Str, Roodepoort, 1724

FINANCIAL REPORTING PERIODS

Current: 01/09/2011 to 31/08/2012

Previous: 01/09/2010 to 31/08/2011

BOARD OF TRUSTEES

Full name Capacity Date appointed Date resigned

Le Grellier, GD Chairman 13/03/2007

Trustees

Crawford, DL Independent 29/10/2008

De Villiers, CM Independent 21/08/2009

Le Grellier, GD Independent 28/06/2005

Rollason, JD Independent 03/04/2006

FUND OFFICERS

PRINCIPAL OFFICER

Postal address: Physical address: Tel no:

De Villiers, CM (Appointed 1/11/2009

PO Box 527, Pinegowrie, 2123

6, Mandeville Gardens, 65 Mandeville Road,Bryanston

(011) 704-1643

MONITORING PERSON Postal address: Physical address: Tel no:

De Villiers, CM (Appointed 1/11/2009

PO Box 527, Pinegowrie, 2123

6, Mandeville Gardens, 65 Mandeville Road,Bryanston

(011) 704-1643

PROFESSIONAL SERVICE PROVIDERS

BENEFIT ADMINISTRATOR Postal address: Physical address: Tel no: FSB no:

Brefco (Pty) Ltd PO Box 829, Wilgeheuwel, 1736

A3 Willow Crest Off Estate, 655 Van Hoof Street, Roodepoort, 1724

(011) 958-0511 24/218

AUDITOR

Postal address: Physical address: Tel no:

BDO South Africa Incorporated

Private Bag X60500, Houghton 2041

22 Wellington Road, Parktown 2193 (010) 060 5000


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REGULATORY INFORMATION - CONTINUED FOR THE PERIOD ENDED 31 AUGUST 2012

ACTUARY/VALUATOR Postal address: Physical address: Tel no:

Hendriks, C, c/o Arthur Els & Associates Consulting Actuaries,

P.O. Box 413266, Craighall, 2024

Marlborough Gate, Hyde Lane, Hyde Park, 2196

(011) 441-2700

INVESTMENT ADVISOR Postal address: Physical address: Tel no: FAIS no:

Sasfin Financial Advisory Services (Pty) Ltd

PO Box 95104, Grant Park, 2051

Sasfin House, 29 Scott Street, Waverley, 2090

(011) 809-7500 57/11

INVESTMENT MANAGER(S) Postal address: Physical address: Tel no: FSB no:

Allan Gray Limited PO Box 51318, V&A Waterfront, Cape Town, 8002

Granger Bay Court, Beach Rd, V&A Waterfront, Cape Town

(021) 415-2300 24/437

Investment Solutions Limited

P O Box 786055, Sandton, 2146

54 Wierda Rd West. Wierda Valley

(011) 505 6000 24/217

PARTICIPATING EMPLOYERS

All participating employers terminated with the Fund during 2009.


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SCHEDULE B STATEMENT OF RESPONSIBILITY BY THE BOARD OF TRUSTEES FOR THE PERIOD ENDED 31 AUGUST 2012.

RESPONSIBILITIES The board of trustees hereby certify to the best of their knowledge and belief that, during the period under review, in the execution of their duties they: ensured that proper registers, books and records of the operations of the Fund were kept, inclusive of proper

minutes of all resolutions passed by the board of trustees; ensured that proper internal control systems were employed by or on behalf of the Fund; ensured that adequate and appropriate information was communicated to the members of the Fund, informing them

of their rights, benefits and duties in terms of the rules of the Fund; took all reasonable steps to ensure that contributions, where applicable, were paid timeously to the Fund or reported

where necessary in accordance with section 13A and regulation 33 of the Pension Funds Act in South Africa; obtained expert advice on matters where they lacked sufficient expertise; ensured that the rules and the operation and administration of the Fund complied with the Pension Funds Act in

South Africa, the Financial Institutions (Protection of Funds) Act and all other applicable laws; ensured that fidelity cover was maintained. This cover was deemed adequate and in compliance with the rules of

the Fund; and ensured that investments of the Fund were implemented and maintained in accordance with the Fund’s investment

strategy.

APPROVAL OF THE ANNUAL FINANCIAL STATEMENTS The annual financial statements of ABACUS UMBRELLA PROVIDENT FUND are the responsibility of the board of

trustees. The board of trustees fulfils this responsibility by ensuring the implementation and maintenance of accounting systems and practices adequately supported by internal financial controls. These controls, which are implemented and executed by the Fund and/or its benefit administrators, provide reasonable assurance that: the Fund’s assets are safeguarded; transactions are properly authorised and executed; and the financial records are reliable.

Apart from exceptions resulting in the qualified audit report (due to the period of uncertainty discussed under “Responsibilities” above, the annual financial statements set out on pages 12 to 20 have been prepared for regulatory purposes in accordance with: The basis of accounting applicable to retirement funds in South Africa as indicated in the principal accounting

policies contained in the notes to the financial statements on page 14 and 15; the financial rules of the fund; and the provisions of the Pension Funds Act in South Africa. These financial statements have been reported on by the independent auditors, BDO South Africa Incorporated, who

was given unrestricted access to all financial records and related data, including minutes of all relevant meetings. The board of trustees believes that all representations made to the independent auditors during their audit were valid and appropriate. The report of the independent auditors is presented on page 7. With regard to the above, the trustees would like to refer to paragraph 9 on page 10 of the trustee report.


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STATEMENT OF RESPONSIBILITY BY THE BOARD OF TRUSTEES - CONTINUED FOR THE PERIOD ENDED 31 AUGUST 2012.

These financial statements: were approved by the board of trustees on 26/02/2014

are certified by them to the best of their knowledge and belief to be correct; fairly represent the net assets of the fund at 31 August 2012 as well as the results of its activities for the period then

ended; and are signed on the board of trustees behalf by:


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SCHEDULE C STATEMENT OF RESPONSIBILITY BY THE PRINCIPAL OFFICER

I to the best of my knowledge confirm that for the period under review the ABACUS UMBRELLA PROVIDENT FUND

has timeously submitted all regulatory and other returns, statements, documents and any other information as required in terms of the Pension Funds Act and all relevant legislation except for the following:

1. The 2010 statutory valuation report. 2. The 2012 annual financial statements

The late submission of these documents arises from the major fund rebuild which has been undertaken and which was previously communicated to the FSB.


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SCHEDULE D INDEPENDENT AUDITOR’S REPORT TO THE BOARD OF TRUSTEES OF THE ABACUS UMBRELLA PROVIDENT FUND AND THE REGISTRAR OF PENSION FUNDS

Report of the Annual Financial Statements

We have audited the annual financial statements of Abacus Umbrella Provident Fund, which comprise the report of the board of trustees, and the statement of net assets and funds as at 31 August 2012, and the statement of changes in net

assets and funds for the year then ended, and the notes to the financial statements, which include the principal accounting policies and other explanatory notes, as set out on pages 8 to 20. Board of Trustees’ Responsibility for the Financial Statements

The board of trustees is responsible for the preparation and presentation of these financial statements for regulatory purposes, in accordance with the basis of preparation applicable to retirement funds in South Africa, as set out in the notes to the financial statements. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility

Our responsibility is to express an opinion on these 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 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 auditor’s judgment, 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 entity’s preparation and 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 entity’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 financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Basis for Qualified Opinion

We draw your attention to paragraph 10 on page 10 and 11 of the Report of the Board of Trustees, wherein the Board of Trustees acknowledges various shortcomings for the prior periods from 1 September 2005 to February 2010 which have resulted in us expressing a qualified opinion. Qualified Opinion

In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements of Abacus Umbrella Provident Fund for the year ended 31 August 2012 have been prepared, in all

material respects, in accordance with the basis of preparation applicable to retirement funds in South Africa as set out in the notes to the financial statements.


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SCHEDULE E REPORT OF THE BOARD OF TRUSTEES FOR THE PERIOD ENDED 31 AUGUST 2012

1. DESCRIPTION OF THE FUND

1.1. TYPE OF FUND In terms of section 1 of the Income Tax Act 1962 the Fund is classified as a provident fund. The Fund is a defined contribution scheme that is arranged for multiple employers and their employees in an umbrella arrangement.

1.2. BENEFITS 1.2.1. The benefit structure of this fund is based solely on the accumulation of contributions plus investment

income earned from the appropriate investments. 1.2.2. The Fund provides lump sum benefits to members of the Fund when they retire or resign from their

employer as well as death benefits for their dependants should they die in service. 1.2.3. The benefits provided for are:

(a) Retirement benefit: Share of Fund (b) Withdrawal benefit: Share of Fund (c) Death benefit: Share of Fund plus a re-insured lump sum

1.3. CONTRIBUTIONS 1.3.1. Members contributed at various rates as specified in the Special Rules of the participating employer. 1.3.2. The employers contributed at various rates as specified in the Special Rules of the participating

employer. 1.3.3. The Fund is now closed for new membership and contributions

1.4. RESERVES In terms of the rules a Reserve Account was established to allow Employers to contribute towards a reserve account which is used to meet fund expenses. The amount in the Reserve Account was utilised towards expenses, the Reserve Account is Nil at the year-end

2. INVESTMENTS

2.1. INVESTMENT STRATEGY The investment strategy of the Fund is set by the board of trustees after taking due consideration of the advice of the Fund’s investment and other professional advisors. This investment strategy complies with the provisions of regulation 28 of the Pension Funds Act in South Africa. The investments are managed according to the following principles: 2.1.1. General

Members are identified according to their “period to retirement” and are then placed into a suitable mix of different asset classes, which are selected in order to provide those members furthest away from retirement with high growth potential, bearing in mind that they are able to withstand a greater standard deviation of investment returns, in that their investments have time to recover from investment return fluctuations. Members closest to retirement are placed in an asset mix that minimises the standard deviation of returns over time and is designed to protect the capital accumulated whilst delivering returns at least matching inflation over short term periods until retirement. Members between these extremes are moved progressively from portfolios at the longer “period to retirement” end of the continuum through a series of lower risk portfolios to the pre-retirement lowest risk portfolio.

2.1.2. Individual members choice

The Fund does offer individual members an option of the investment products in which the Fund is invested, if they do not wish to be invested in the default portfolios.


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REPORT OF THE BOARD OF TRUSTEES - CONTINUED FOR THE PERIOD ENDED 31 AUGUST 2012

2.1.3. Unclaimed benefits

Complete records are maintained from the date the member exits the Fund. Any unclaimed benefit will earn the same return the Fund declares unless specifically requested to invest in another investment portfolio.

2.1.4. Surplus apportionment

Not applicable.

2.1.5. Reserve accounts Not applicable.

2.2. MANAGEMENT OF INVESTMENTS

It is the Fund’s policy to mandate investment administrator to manage the Funds’ investments in accordance with the Fund’s investment strategy. Investment managers are granted complete discretion as to the management and composition of the investment portfolios subject to their mandate and limitation imposed by the Pension Funds Act in South Africa. Investment managers are selected on their performance, sector or specialist knowledge, professional competence and ability to deliver on the fund’s investment strategy. The board of trustees meet regularly to: (a) discuss and if necessary review the investment strategy, (b) discuss and if necessary review the investment management strategy, (c) monitor the asset allocation and performance of the investment administrator against the investment strategy of the Fund.

The fair value of the Fund’s investments, administered by the investment administrators at the end of the period was:

Current period

R

Previous period R

Allan Gray Limited 0 69,632

Investment Solutions Limited 106,542,747 93,058,011

Total value of investments managed 106,542,747 93,127,643

3. MEMBERSHIP

Active members

Numbers at beginning of period 2,862

New members

Adjustments (Note 1) (4)

Additions 4

Re-instated 1

Members not exited – (Note 2) 135

Members exit from fund

Transfers out (1)

Withdrawals (137)

Retirements (12)

Deaths (10)

Numbers at end of period 2,838

Note 1: The adjustments refer to duplicate members that were reported in the opening balance and have been combined during the year. Note 2: This refers to members who resigned and whose share of fund was not paid in full.


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REPORT OF THE BOARD OF TRUSTEES - CONTINUED FOR THE PERIOD ENDED 31 AUGUST 2012

4. ACTUARIAL VALUATION

The statutory actuarial valuation as at 31 August 2010 was completed by the actuary in December 2013. The valuation report has been submitted to the Financial Services Board and was approved by the Registrar on 4th February 2014. As per the valuators report on page 21, item 8 states- “the Fund was in a sound financial position as at 31 August 2010. The next statutory actuarial valuation of the Fund is due as at 31 August 2013”.

5. SURPLUS APPORTIONMENT

In a letter dated 29 October 2010 the Registrar of Pension Funds recorded that the Fund (a) does not have an actuarial surplus to apportion as at the surplus apportionment date, i.e. 31 August 2004, (b) noted the Fund’s NIL return as at 31 August 2004 and (c) does not require the submission of a surplus apportionment scheme as envisage by section 15B(1) of the Act.

6. HOUSING LOAN FACILITIES

If requested by the Employer and approved by the board of trustees the Fund was willing to provide to employees of that employer surety for housing loans in terms of section19(5)(a) of the Pensions Funds Act. From September 2011 all employers have terminated and the Fund is not open to any new employers or contributions therefore no guarantees for housing loans have been granted. Please refer to note 2 on page 16 for further details of the housing loans.

7. INVESTMENTS IN PARTICIPATING EMPLOYERS

The Fund did not hold any investments in the participating employers.

8. SUBSEQUENT EVENTS

There are no events subsequent to the year-end that need to be reported on.

9. SIGNIFICANT MATTERS

There are no significant matters to report on in the current financial year apart from those mattes reported in the prior years.

10. SIGNIFICANT MATTERS – PRIOR TO MARCH 2010

Pioneer Employee Benefits (Pty) Ltd was the appointed benefit administrator for the Fund until 28 February 2009. Self-Assurance Benefit Administrators (Pty) Ltd took over from Dynam-ique SA Fund Administrators (Pty) Ltd as the outsourced administrator from 1 November 2007. From 1 March 2009 Self-Assurance was appointed by the trustees as the approved benefit administrator. The trustees would like to place on record that certain instances of poor administration and record-keeping were, subsequent to year-end 31 August 2006, brought to their attention. As a result, the trustees have concerns about the standard of record-keeping and controls that were in fact implemented, executed and maintained by the then administrators, Pioneer Employee Benefits (Pty) Ltd and Self -Assurance Benefit Administrators (Pty) Ltd. The difficulties experienced by the previous administrators relating to the Fund included a change in the outsourced administrator, a high turnover of staff involved with the Fund, poor record-keeping and poor financial reporting. All of these factors contributed to a period of uncertainty with regards to the administration of the Fund. In late 2008 Pioneer Employee Benefits (Pty) Ltd advised the Fund that it did not wish to continue its administration business. During March 2009 it placed itself into liquidation. The Fund then appointed Self-Assurance Benefit Administrators (Pty) Ltd (which had been the outsourced provider) to continue with the administration in terms of a direct contract with the Fund. Self-Assurance Benefit Administrators (Pty) Ltd commenced with a rebuild process which was never concluded by them. The rebuild process was required to fix errors arising from the administration difficulties referred to above. In early 2010 they advised the Fund that they were unable to continue with the rebuild or the on-going administration.


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SIGNIFICANT MATTERS – PRIOR PERIOD – continued

The Fund then appointed Brefco (Pty) Ltd with effect from 1 March 2010 to redo the rebuild process from 1 September 2005 and to deal with the day to day administration of the Fund

The following outstanding items were identified as poor administration prior to March 2010, which resulted in the auditors qualifying the financial statements up to 31 August 2010. 10.1 The signed administration agreements between the Fund, the administrator, and every participating employer were not made available. 10.2 The Fund has previously accounted for reinsurance premiums and administration fees on the basis of actual contributions received. No rate confirmations from the risk insurers were made available for audit purposes. 10.3 Various supporting documentation could not be located. 10.4 Due to the lack of documentation and the various changes in administration, the trustees took a prudent decision to reconstruct member’s fund records from March 2006. This resulted in member’s benefits being paid on a partial basis, with a final agterskot payment to be made after the completion of the rebuild process. 10.5 The above matters will however be carried forward and all attempts to rectify these qualifications will continue. None of the above matters have any significant effect on the financial state of the Fund.


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SCHEDULE F STATEMENT OF NET ASSETS AND FUNDS AT 31 AUGUST 2012

Notes Current period

R

Previous period R

ASSETS

Non-current assets 106,542,747 93,127,643

Investments (including investment properties) 1 106,542,747 93,127,643

Current assets 8,434,117 7,572,610

Accounts receivable 3 4,987,293 5,065,242

Contributions receivable 8 3,842 14,017

Cash at bank 3,442,982 2,493,351

TOTAL ASSETS 114,976,864 100,700,253

FUNDS AND LIABILITIES

Members’ funds and surplus account 108,964,388 93,905,870

Members’ individual accounts 108,964,388 93,905,870

Total funds and reserves 108,964,388 93,905,870

Non-current liabilities 1,412,380 1,320,648

Provisions 11.1 1,412,380 1,320,648

Current liabilities 4,600,096 5,473,735

Benefits payable 6 556,994 681,526

Accounts payable 7 4,043,102 4,792,209

TOTAL FUNDS AND LIABILITIES 114,976,864 100,700,253


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SCHEDULE G STATEMENT OF CHANGES IN NET ASSETS AND FUNDS FOR THE PERIOD ENDED 31 AUGUST 2012

Notes Members’ accounts

R

Total Current period

R

Total Previous period

R

Other items 0 0 25,116

Reinsurance proceeds 0 0 25,116

Investment income 15,583,036 15,583,036 10,547,898

Net investment income 9 15,583,036 15,583,036 10,547,898

Less: Expenses (1,202,925) (1,202,925) (1,320,007)

Re-insurance premiums 0 0 (249,566)

Administration expenses 10 (1,202,925) (1,202,925) (1,070,441)

Net income before transfers and benefits

14,380,111 14,380,111

9,253,007

Transfers and benefits 678,407 678,407 (2,590,173)

Transfers from other funds 4 6,863,806 6,863,806 4,282,807

Transfers to other funds 5 (133,109) (133,109) 0

Benefits 6 (6,052,290) (6,052,290) (6,872,980)

Net income after transfers and benefits

15,058,518 15,058,518

6,662,834

Funds and reserves 93,905,870 93,905,870 87,243,036

Balance at beginning of period 93,905,870 93,905,870 87,243,036

Balance at end of period 108,964,388 108,964,388 93,905,870


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SCHEDULE HA NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2012 PRINCIPAL ACCOUNTING POLICIES

The following are the principal accounting policies used by the Fund, which are consistent with those of the previous period.

PURPOSE AND BASIS OF PREPARATION OF FINANCIAL STATEMENTS The financial statements are prepared in accordance with the Regulatory Reporting Requirements for Retirement Funds in South Africa, the rules of the Fund and the provisions of the Pension Funds Act in South Africa. The financial statements are prepared on the historical cost and going concern bases, modified by the valuation of financial instruments and investment properties to fair value, and the revaluation of property, plant and equipment to market value.

FINANCIAL INSTRUMENTS Measurement

Financial instruments include cash and bank balances, investments, housing loans, receivables and accounts payable. Financial instruments are initially measured at cost as of trade date, which includes transaction costs. Subsequent to

initial recognition, these instruments are measured as set out below. Investments

Investments are measured at fair value. The fair value of marketable securities is calculated by reference to the applicable Stock Exchange quoted selling prices at the close of business on the statement of funds and net assets date

Collective Investment Schemes

Investments are measured at fair value. The fair value of marketable securities is calculated by reference to the applicable insurer, investment manager or the Stock Exchange quoted selling prices at the close of business on the statement of funds and net assets date.

Housing loans

The Fund did not grant any guarantees for loans or any direct housing loans to its members in terms of Section19(5) of the Pension Fund Act. Other loans Not applicable.

Insurance policies

Insurance policies linked to listed investments are valued at fair value and are therefore equivalent to market value of the underlying assets as certified by the Insurer concerned.

Accounts receivable

Accounts receivable are stated at realisation value.

Cash and cash equivalents Cash and cash equivalents are measured at fair value.

Accounts payable Accounts payable are stated at the actual amounts due.

PROVISIONS Provisions are brought into account for known obligation as a result of past events, for which it will be required to settle the obligation. A reliable estimate has been made of the amount of the obligation.

CONTRIBUTIONS Contributions are brought to account on the accrual basis.


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NOTES TO THE FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2012 PRINCIPAL ACCOUNTING POLICIES - CONTINUE

DIVIDEND INCOME, INSURANCE POLICY INCOME, INTEREST AND RENTALS Interest is recognised when it is determined that such income will accrue to the Fund. Insurance policy income and dividends are recognised when declared by the insurer. Gains and losses on investments are recognised during the period in which the change arises.

TRANSFERS TO AND FROM THE FUND Transfers to or from the Fund are recognised on approval being granted by the Financial Services Board as required in terms of Section 14 and 13B of the Pension Funds Act. Individual transfers are recognised when the individual member’s transfer is received or paid.


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NOTES TO THE FINANCIAL STATEMENTS - CONTINUED FOR THE PERIOD ENDED 31 AUGUST 2012

1. INVESTMENTS

1.1 INVESTMENT SUMMARY

Local

Foreign

Total Fair Value Current period

Total Fair Value Previous period

R R R R

Insurance policies:

- Linked related policies 92,281,418 14,261,329 106,542,747 93,127,643

TOTAL INVESTMENTS 92,281,418 14,261,329 106,542,747 93,127,643

2 HOUSING LOAN FACILITIES

2.1 HOUSING LOAN GUARANTEES

Loans are granted in terms of the rules of the fund and section 19(5) of the Pension Funds Act in South Africa.

The amount of the guarantee may not exceed 60.0% of the cash benefit that a member would receive if he or she had to terminate membership to the fund voluntarily.

The Fund has granted guarantees to Standard Bank for outstanding loans amounting to R471,441 for 34 members.

3. ACCOUNTS RECEIVABLE

Current period

R

Previous Period R

Income accrued 12,496 11,912

Due from Abacus Umbrella Pension Fund 1,480,760 1,470,632

Due from Investment Managers 0 26,036

Due from SARS Benefit tax 561,586 579,886

Risk premiums paid in advance 2,714,705 2,721,213

Refund due for duplicate payments(Note A) 217,746 246,543

Refund due from FSB 0 9,020

TOTAL 4,987,293 5,065,242

Note A :Refund due from Self Assurance Provident Fund for benefit paid by the Fund Refund due from Transpaco for contributions re-paid to them twice by the Fund


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NOTES TO THE FINANCIAL STATEMENTS – CONTINUED FOR THE PERIOD ENDED 31 AUGUST 2012 4. TRANSFERS FROM OTHER FUNDS

Effective date

No. of members

At beginning of period

Transfers approved

Assets transferred

At end of period

R R R R

In terms of section 14

0 6,863,806 (6,863,806) 0

SIP Project Manager Provident Fund - SIP Projects

19/03/2012 6 0 1,525,462 (1,525,462) 0

Amalgam Defined Contribution Fund – Rand Realty

06/06/2012 40 0 3,546,052 (3,546,052) 0

Outsourced Solutions Provident Fund – Tool Centre

08/08/2012 3 0 1,792,292 (1,792,292) 0

Total

0 6,863,806 (6,863,806) 0

Current Period

Previous Period

R

R

Transfers approved

6,863,806

4,282,807

Statement of changes in net assets and funds 6,863,806

4,282,807

5. TRANSFERS TO OTHER FUNDS

Effective date

No. of members


Transfers approved

Assets transferred

At end of period

R R R R

In terms of section 14

0 133,109 (133,109) 0

AFRF Provident Fund Sect BASF- W Oliver

09/02/2012 1 0 133,109 (133,109) 0

Total

0 133,109 (133,109) 0

Current Period

Previous Period

R

R

Transfers approved

133,109

0

Return on transfers

0

0

Statement of changes in net assets and funds 133,109

0


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NOTES TO THE FINANCIAL STATEMENTS – CONTINUED For the period ended 31 August 2012 6. BENEFITS

6.1 BENEFITS – CURRENT MEMBERS

At beginning

of period

Benefits for current period Payments

At end of period

R R R R

Lump sums on retirements 0 1,880,729 (1,880,729) 0

Full benefit 0 1,880,729 (1,880,729) 0

Lump sums before retirement 681,526 4,171,561 (4,296,093) 556,994

Death benefits 0 782,350 (782,350) 0

Withdrawal benefits 681,526 3,389,211 (3,513,743) 556,994

Total benefits awarded 681,526 6,052,290 (6,176,822) 556,994

Current Period

R

Previous Period R

Benefit awarded 6,052,290 6,872,980

Statement of changes in net assets and funds 6,052,290 6,872,980

7. ACCOUNTS PAYABLE

Current period R

Previous period R

Admin fees due to administrators 2,047,518 2,023,085

Auditors fees due 426,702 479,484

Contriibutions paid in advance 343,206 353,381

Risk premiums due to insurers 398,306 404,815

Other Creditors (unidentified transactions) 754,600 754,600

Sundry Creditors (benefits returned) 64,822 64,822

Sundry Creditors (Sasani Housing Loans) 7,948 712,022

TOTAL ACCOUNTS PAYABLE 4,043,102 4,792,209

8. CONTRIBUTIONS


Towards retirement

Towards re-insurance and expenses

Contributions adjustment

At end of period

R R R R R

Received and accrued

– Employer contributions

14,017 0 0 (10,175) 3,842

TOTAL CONTRIBUTIONS 14,017 0 0 (10,175) 3,842

Current period

R

Previous period R

Towards retirement 0 (433,904)

Toward re-insurance and expenses 0 433,904

Statement of changes in net assets and funds 0 0

Contribution adjustment refers to Transpaco Admin & Finance difference in contribution transferred to Contributions paid in Advance - accounts payable.


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NOTES TO THE FINANCIAL STATEMENTS – CONTINUED FOR THE PERIOD ENDED 31 AUGUST 2012 9. NET INVESTMENT INCOME

Current period R

Previous period R

Income from investments 74,042 76,488

Interest 74,042 76,488

Adjustment to fair value 16,456,478 11,301,806

Sub – total 16,530,520 11,378,294

Less: Expenses incurred in managing investments (947,484) (830,396)

TOTAL INVESTMENT INCOME 15,583,036 10,547,898

10. ADMINISTRATION EXPENSES

Notes Current period

R

Previous period

R

Actuarial fees 74,860 74,860

Administration fees 659,262 779,418

Audit fees 85,500 104,538

Audit services 85,500 104,538

Fidelity Insurance 15,551 12,442

Levies 45,930 29,988

Legal fees 240,000 0

Other Bank Charges 1,932 3,149

Bank Charges 1,932 3,149

Trustee fees and remuneration 10.1 79,890 66,046

TOTAL ADMINISTRATION EXPENSES 1,202,925 1,070,441

10.1 TRUSTEE EXPENSES Current period

R Previous period

R

Remuneration 78,842 64,948

Meeting allowances 1,048 1,098

Total trustee expenses 79,890 66,046

11. FINANCIAL LIABILITIES AND PROVISIONS

11.1 PROVISIONS Current period

R Previous period

R

Provision for actuarial fees 460,079 535,642

Provision for trustee expenses 98,056 98,056

Provision for project manager 35,911 35,911

Provision for PAYE reconciliation 31,338 50,000

Provision for SARS/FSB penalties 124,000 95,463

Provision for rebuild cost (historical data) 58,580 94,646

Provision for rebuild cost (previous admin) 163,844 163,844

Provision for rebuild cost (legal) 440,572 247,086

TOTAL 1,412,380 1,320,648


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NOTES TO THE FINANCIAL STATEMENTS – CONTINUED FOR THE PERIOD ENDED 31 AUGUST 2012 12. RISK MANAGEMENT POLICIES

SOLVENCY RISK Continuous monitoring by the Board takes place to ensure that appropriate assets are held where the Funds obligation to members is dependent upon the performance of specific portfolio assets and that a suitable match of assets exists for all other liabilities.

CREDIT RISK The Board monitors receivable balances on an on-going basis with the result that the Fund’s exposure to bad debts is not significant. An appropriate level of provision is maintained.

LEGAL RISK Legal risk is the risk that the Fund will be exposed to contractual obligations which have not been provided for. Legal representatives of the Fund monitor the drafting of contracts to ensure that rights and obligations of all parties are clearly set out.

CASH FLOW RISK The board of trustees agreed an amount with the administrators that should be kept in the bank account to meet the Fund’s cash flows requirements. If the agreed amount is insufficient, the administrator must disinvest to meet the required cash flow.

CURRENCY RISK

The Fund’s exposure to currency risk is mainly in respect of foreign investments made on behalf of members of the Fund for the purpose of seeking desirable international diversification of investments.

LIQUIDITY RISK The Fund’s liabilities are backed by appropriate assets and it has significant liquid resources.

MARKET RISK Market risk is the risk that the value of a financial instrument will fluctuate as a result of changes in market prices of market interest rates.

INVESTMENTS Investments in insurance policies are valued at fair value as certified by the insurer. Investments are managed with the aim of maximising the Fund’s returns while limiting risk to acceptable levels within the framework of statutory requirements. Continuous monitoring takes place to ensure that appropriate assets are held where the liabilities are dependent upon the performance of specific portfolios of assets and that a suitable match of assets exists for all non–market related liabilities.

13. PROMISED RETIREMENT BENEFITS

As a defined contribution fund, the Fund in association with the principal and participating employers provides the members a course to save towards retirement. The Fund liability to the promised retirement benefit is limited to the member’s equitable share of his/her share of fund. The member’s share of fund is the member’s retirement contributions plus the net return earned from the appropriate investment.

14. RELATED PARTY TRANSACTIONS

The following transactions between the principal employer and the fund occurred: The participating employers made contributions to the Fund - for members’ retirement to the value of R 0 - towards the fund’s expenses to the value of R 0

End of Schedule HA


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SCHEDULE HB REPORT OF THE VALUATOR


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SCHEDULE I REPORT OF THE INDEPENDENT AUDITORS OF ABACUS UMBRELLA PROVIDENT FUND TO THE REGISTRAR OF PENSION FUNDS ON FACTUAL FINDINGS Scope

We have performed the procedures agreed with you and enumerated below with respect to the accounting records of Abacus Umbrella Provident Fund for the year ended 31 August 2012 as required by you in terms of section 15 of the Pension Funds

Act of South Africa, (the Act). Our engagement was undertaken in accordance with the International Standard on Related Services (4400) Engagements to perform agreed-upon procedures regarding financial information. The responsibility for determining the adequacy or otherwise of the procedures agreed to be performed is that of the Registrar of Pension Funds. Procedures and Findings

Procedures

Findings

1 We selected a sample of the lesser of 50 or 10% of members from the complete listing of participating employers in the umbrella fund and for the following three months: September 2011, April 2012 and August 2012, and performed the following procedures:

1.1 We agreed, in total, the data received by the administrator to the cash received by the fund.

No contributions were received throughout the period ended 31 August 2012.

1.2 We inspected the bank statements as appropriate, for the date on which the cash was received to determine whether the contributions were deposited with a registered bank in accordance with section 13A of the Act and whether late payment interest has been raised in terms of regulation 33, where applicable.

Not applicable.

1.3 We inspected the accounting records of the fund to determine whether amounts disclosed as arrear contributions at period-end have been paid to the fund in accordance with the requirements of section 13A of the Act.

We found that the arrear contributions were not paid to the fund in accordance with the requirements of s13A of the Act. An amount of R 3 842 was still due from prior periods.

2 We inspected the list of investments held by the fund for any investments prohibited in terms of section 19(4) of the Act.

We found that the fund does not hold investments prohibited in terms of section 19(4) of the Act.

2.1 Where investments held in the participating employer exceeded 5%, we inspected the appropriate Financial Services Board approval.

Not applicable.

2.2 We obtained written confirmations of investment balances and agreed details of the confirmations received to the investment balances reflected in the general ledger.

We found that the investment balances agreed to the details in the confirmations received from the investment managers.


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Procedures

Findings

3 We obtained the list of housing loans granted to members by the fund in terms of section 19(5) of the Act by the fund as at 31 August 2012 and performed the following procedures:

The fund does not grant housing loans.

3.1 We determined by inspection whether both the general rules of the fund and the special rules of the participating employer allow for the granting of housing loans.

Not applicable.

3.2 We agreed the loans on the above list to the account in the general ledger.

Not applicable.

3.3 From the above list, we selected a sample of the lesser of 50 or 10% of housing loans and determined whether the selected housing loans were granted in terms of the requirements of section 19(5) of the Act, in terms of the security provided and the interest rates applied to the loans.

Not applicable.

3.4 If the fund issued more than 100 loans or the total principal debt of all outstanding loans exceeded R500 000, we determined whether the fund was registered as a credit provider under the National Credit Act, 2005 (the NCA) and whether an assurance report had been issued to the National Credit Regulator in terms of section 16(1)(b) of the NCA and regulations 67 and 68 to the NCA.

Not applicable.

4 We obtained the list of housing loan guarantees granted to members by the fund in terms of section 19(5) of the Act as at 31 August 2012. We selected a sample of the lesser of 50 or 10% of housing guarantees from the list. For the sample selected, we compared the total for guarantees issued on behalf of the members to the total of member individual fund credits, to determine whether the total guarantees issued exceeded the total member individual fund credits allowed in terms of the Act and/or the rules of the fund.

The total guarantees issued did not exceed the total member individual fund credits.

5 We obtained a list of other loans as at 31 August 2012 and determined whether these loans were granted in terms of the requirements of section 19(5) B of the Act.

The fund does not grant other loans.

6 We obtained written confirmation from the fund’s insurer that fidelity insurance cover was in place throughout the period ended 31 August 2012.

Fidelity insurance cover was in place for the period ended 31 August 2012.

7 We obtained the list of section 14 transfers to and from the fund throughout the period ended 31 August 2012 and performed the following procedures:

7.1 We agreed the section 14 transfers to and from the fund to the approved section 14 documentation received from the Financial Services Board in respect of each transfer.

The section 14 transfers to the fund agreed to the approved section 14 documentation received from the Financial Services Board.


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Procedures

Findings

7.2 We agreed the above list of section 14 transfers to the corresponding account in the general ledger.

The list of section 14 transfers to the fund agreed to the corresponding account in the general ledger.

7.3 We determined by inspection whether the transfers were received/paid within 60 days of approval and whether the growth and interest return had been allocated from date of receipt/payment.

The transfers were received within 60 days of approval and growth and investment returns were allocated from date of receipt. Refer to page 26 to annexure A for the exceptions noted.

7.4 In respect of unitised funds, we selected a sample of the lesser of 50 or 10% of the members transferred and recalculated the purchase of units for the amount received using the unit price per the administration system on the date of receipt. (Where units were purchased after date of receipt investment return was included from the date of receipt to the date of purchase)

The conversion of transfers in was correctly calculated and where units purchased after date of receipt investment return was added from date of receipt to date of purchase.

8 We obtained a list of accumulated member credits as reflected on the administrator’s member register as at 31 August 2012 and performed the following procedures:

8.1 We agreed the closing balance on the list to corresponding account in the annual financial statements as at 31 August 2012.

The closing balance on the list did not agreed to the corresponding accounts in the annual financial statements as at 31 August 2012.

Balance as per annual

financial statements

R 108 964 388

Balance as per

administrator’s listing

R 108 964 301

Difference R 85

8.2 We selected a sample of the lesser of 50 or 10% of the members from the list and performed the following procedures:

8.2.1 We agreed the member and employer contributions received for the selected members per the administrator’s system to information supplied by the participating employers for a sample of 3 months.

We found that the member and the employer contributions received for the selected member per the administrator’s system agreed to information supplied by the participating employers.

8.2.2 In respect of unitised investment products, we recalculated the conversion of the selected contributions at the unit price per the administration system on the dates that the contributions were invested and determined whether these units were correctly calculated and added to the existing units for the full period.

We recalculated the conversion of the selected contributions at the unit price per the administration system on the dates that the contributions were invested and determined that the units were correctly calculated and added to the existing units for the period.

8.2.3 In respect of unitised investment products, we recalculated the conversion of units at the end of the period at the period end unit price and agreed the amount to the member’s record on the member register.

We recalculated the conversion of units at the end of the period at the period end unit price and agreed the amount to the member’s record on the member register.


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Procedures

Findings

8.2.4 In respect of unitised investment products, we agreed the period end unit price as authorised in terms of the rules of the fund to the unit prices on the administration system used to calculate the member credits.

We agreed the period end unit price as authorised in terms of the unit price statement to the unit prices on the administration system used to calculate the member credits

8.2.5 In respect of non-unitised investment products, we agreed the return allocated to the member’s fund credit on the administrator’s records to the return approved in accordance with a resolution of the Board of Trustees or the general rules/special rules of the fund.

Not applicable.

8.3 We selected a sample of the lesser of 50 or 10% of members who switched between investment portfolios during the period and determined whether the portfolios were correctly switched and that the correct amount was switched in accordance with notification of the member’s election. We inspected whether any fees deducted were approved by the Board of Trustees.

Not applicable.

8.4 If a surplus apportionment scheme was approved by the FSB in the current period, we selected a sample of the lesser of 50 or 10% from the surplus schedules and we agreed the allocation of the fund surplus of the scheme to the individual allocation in the member records per the administration system.

Not applicable.

8.5 For unitised investment products where member portfolios are backed by specific portfolios, we agreed the values of investments specified by the members investment choice to the members liabilities per product for that choice and inspected the accuracy of reconciling items.

Not applicable.

9 We inspected the most recent statutory valuation report dated 31 August 2007 on the valuator’s findings relating to the funding levels of the fund and performed the following procedures:

9.1 We determined whether, in accordance with the valuation report dated 31 August 2010, the fund was under funded.

We found that in accordance with the valuation report, the fund was not under- funded.

9.2 Where a fund was under funded, we agreed that a scheme, as required in terms of section 18 of the Act, has been proposed and is being implemented, to remedy the shortfall.

Not applicable.

10 We obtained the analysis of the movements in the fund’s reserve accounts from the financial statements and performed the following procedures:

The fund does not have reserve accounts.

10.1 We agreed the opening balance to the prior period financial statements.

Not applicable.

10.2 We inspected the rules of the fund to determine whether the movements in the fund’s reserve accounts were in terms of the rules of the fund and the Act.

Not applicable.


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Procedures

Findings

11 We obtained a list of lump sum benefits reflected as expenses in the fund’s Statement of Changes in Net Assets and Funds and performed the following procedures:

11.1 We agreed the list to the respective general ledger benefit expense accounts.

We found that the list agreed to the respective general ledger benefit expense accounts.

11.2 We selected a sample of the lesser of 50 benefits or 10% of the total benefit expenses from the list and performed the following procedures:

11.2.1 We agreed the claim to the applicable, authorised supporting documentation.

We found that the claim agreed to the applicable, authorised supporting documentation.

11.2.2 For death benefits, where a portion of the benefit was reinsured by the fund, we determined whether the recovery from the insurer was received or accrued for by the fund.

We found that the re-insurance proceeds were received by the fund.

11.2.3 We agreed the opening fund credit for the member to the opening fund credit report and determined whether contributions were added every month until the date of exit. [either by R amount or in case of unitised funds, by units] We agreed the balance paid out to member to the fund credit report or administration system as at the date of exit.

We found that the opening fund credit for the member agreed to the opening fund credit report and the contributions were added every month until the date of exit. We found that the balance paid out to member does not agree to the fund credit report or administration system as at date of exit as amounts are being retained by the fund pending finalisation.

11.2.4 We inspected whether the payments agreed to relevant authorisation.

We found that the pay-outs made by the fund agreed to relevant authorisation.

12 We obtained a copy of the listing of pensioners and performed the following procedures:

The fund does not have pensioners.

12.1 We agreed the total pensions paid to the corresponding account in the general ledger.

Not applicable.

12.2 We selected a sample of the lesser of 50 or 10 % of pensions paid from the above list and performed the following procedures:

12.2.1 We agreed the pensioner increases to authorisation by the Board of Trustees or other relevant supporting documentation.

Not applicable.

12.2.2 We inspected evidence supporting the fact that the pensioners selected were still alive.

Not applicable.

13 Where the fund has reinsured its pensioners with an insurer, we obtained a written confirmation of the pensions paid from the insurer including asset and liability balances and agreed this to the fund’s general ledger pension expense, asset and liability accounts.

Not applicable.


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As the above procedures do not constitute either an audit or a review made in accordance with International Standards on Auditing or International Standards on Review Engagements, we do not express any assurance on the procedures performed. Had we performed additional procedures or had we performed an audit or review of the relevant information, other matters might have come to our attention that would have been reported to you.

Procedures

Findings

14 We selected a sample of the lesser of 50 or 10% of existing participating employers and determine whether recurring commissions were paid in terms of the rules of the fund, were limited to the LOA scale.

Not applicable.


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SCHEDULE I ANNEXURE A ABACUS UMBRELLA PROVIDENT FUND

7.3 Procedure: We determined by inspection whether the transfers were received/paid within 60 days of approval and whether the growth and interest return had been allocated from date of receipt/payment. 7.3 Finding: The transfers were received within 60 days of approval and growth and investment returns were allocated from date of receipt. The following exceptions were noted.

Transferor / transferee fund

Date of Financials Services

Board Approval

Date actually

received Amount

Amalgam Defined Contribution Provident Fund

30 March 2012 6 June 2012 R 3 564 052

Outsourced Solutions Provident Fund

31 May 2012 8 August 2012 R 1 792 292


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SCHEDULE IA SCHEDULES PERTAINING TO THE ANNUAL FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 AUGUST 2012

INVESTMENTS

Direct

Investments Linked ins

polices Collective

investment Total Local Foreign

Foreign exposure

R R R R R R %

Cash and deposits 3,442,982 0 0 3,442.982 3,442,982 0 0.0

Insurance policies: 0 106,542,747 0 106,542,747 92,281,418 14,261,329 13.4

Linked policies 0 106,542,747 0 106,542,747 92,281,418 14,261,329 13.4

TOTAL INVESTMENTS 3,442,982 106,542,747 0 109,985,729 95,724,400 14,261,329 13.4

A DIRECT CASH AND DEPOSITS

Fair value R

Total cash and deposits – Standard Bank 3,442,982

K COLLECTIVE INVESTMENT SCHEMES

Fair value Current period

Previous period R

0 69,632

Total Collective Investment Schemes 0 69,632

L INSURANCE POLICIES L1 Market Linked Insurance Policies

Fair value Current period

Previous period R


Total Market Linked Insurance Policies 106,542,747 93,058,011

J RISK MANAGEMENT Credit / counter party risk

Counter party R R %

Banks 3,442,982 3,442,982 3

Standard Bank 3,442,982 3,442,982

Insurance Companies 106,542,747 106,542,747 97


TOTAL 109,985,729 109,985,729 100

Investments are reflected at fair value at the end of the financial period.


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SCHEDULE IB

ASSETS HELD IN COMPLIANCE WITH REGULATION 28

A Total assets of the Fund as per Statement of Net Assets and Funds 114,976,864 B Less: Non-investment items of Statement of Net Assets and Funds: (4,991,135)

B.1 Property Plant and Equipment 0 B.2 Current Assets (excluding cash at bank) (4,991,135)

C Sub-total (A-B) 109,985,729

Fair Value%

1 CASH 100% 14,116,638 12.83%

1.1 Local notes, deposits, money market instruments issued by a South African Bank, margin accounts, settlement accounts with an exchange and Islamic liquidity management financial instruments

100% 13,562,130 12.33%

(a) Notes and coins, any balance or deposit in an

account held with a South African bank 25% 7,310,386 6,65%

(b) A money market instrument issued by a South African bank including an Islamic liquidity man fin instrument

25% 6,238,945 5.67%

(c) Any positive net balance in a margin account with an exchange

25% 12,799

0.01%

1.2 Foreign balances or deposits, money market instruments issued by a foreign bank including Islamic liquidity management financial instruments

SARB 554,508 0.50%

(a) Any balance or deposit held with a foreign bank 5% 554,508 0.50%

2 DEBT INSTRUMENTS INCLUDING ISLAMIC DEBT INSTRUMENTS

22,601,399 20.56%

2.1 Inside the Republic 100% 22,601,399 20.56%

(a) Debt instruments issued by, and loans to, the government of the Republic, and any debt or loan guaranteed by the Republic

100% 12,005,922 10.92%

(c) Debt instruments issued or guaranteed by a South

African Bank against its balance sheet:- 75% 4,648,139 4.23%

(c)(i) Listed on an exchange with an issue market capitalisation of R20 billion or more,

75% 25% 4,483,320 4.08%

(c)(ii) Listed on an exchange with an issuer market capitalisation of between R2b and R20b

75% 15% 162,015 0.15%

(c)(iv) Not listed on an exchange 25% 5% 2,804 0.00%

(d) Debt instruments issued or guaranteed by an entity that has equity listed on an exchange, or debt instruments issued or guaranteed by a public entity under the Public Finance Management Act, 1999 (Act No. 1 of 1999) as prescribed:-

50% 3,828,598 3.48%

(d)(i) Listed on an exchange 50% 10% 3,585,275 3.26%

(d)(ii) Not listed on an exchange 25% 5% 243,323 0.22%


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(e) Other debt instruments:- 25% 2,118,740 1.93%

(e)(i) Listed on an exchange 25% 5% 1,677,221 1.53%

(e)(ii) Not listed on an exchange 15% 5% 441,519 0.40%

3 EQUITIES 57,625,119 52,39%

3.1 Inside the Republic 75% 49,965,268 45,43%

(a) Preference and ordinary shares in companies, excluding shares in property companies:-

75% 49,930,513 45.40%

(a)(i) Issuer market capitalisation of R20 billion or more, or

an amount or conditions as prescribed 75% 39,399,803 35.82%

(a)(ii) Issuer market capitalisation of between R2 billion and R20 billion

75% 9,578,893 8.71%

(a)(iii) Issuer market capitalisation of less than R2 billion, 75% 951,817 0.87%

(b) Preference and ordinary shares in companies, excluding shares in property companies, not listed on an exchange

10% 2.5% 34,755 0.03%

3.2 The Rest of the World (excluding Africa) 75% 7,659,851 6.96%

(a) Preference and ordinary shares in companies, excluding shares in property companies:-

75% 7,659,851 6.96%

(a)(i) Issuer market capitalisation of R20 billion or more, or an amount or conditions as prescribed

75% 6,855,672 6.23%

(a)(ii) Issuer market capitalisation of between R2 billion and R20 billion

75% 804,179 0.73%

4 IMMOVABLE PROPERTY 15,642,573 14.22%

4.1 Inside the Republic 25% 9,595,603 8.72%

(a) Preference shares, ordinary shares and linked units comprising shares linked to debentures in property companies, or units in a Collective Investment Scheme in Property, listed on an exchange

25% 9,595,603 8.72%


25% 15% 4,415,355 4.01%

(a)(ii) Issuer market capitalisation of between R3 billion and R10 billion, or an amount or conditions as prescribed

25% 10% 3,596,681 3.27%

(a)(iii) Issuer market capitalisation of less than R3 billion or an amount or conditions as prescribed

25% 5% 1,583,567 1.44%

4.2 The Rest of the Wold (Excluding Africa) 25% 6,046,970 5.50%

(a) Preference shares, ordinary shares and linked units comprising shares linked to debentures in property companies, or units in a Collective Investment Scheme in Property, listed on an exchange

25% 6,046,970 5.50%


25% 15% 6,046,970 5.50%

TOTAL (equal to the fair value of assets) 109,985,729 100.00%

NOTES: 1. Credit balance in current accounts must be included in item 1

- o O o –


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d of Schedule IB

SCHEDULE IB – CONTINUED

INDEPENDENT AUDITOR’S REPORT TO THE BOARD OF TRUSTEES OF THE ABACUS UMBRELLA PROVIDENT FUND AND THE REGISTRAR OF PENSION FUNDS We have audited the attached schedule IB ‘Assets of the fund held in compliance with regulation 28’ (the “Schedule”) by Abacus Umbrella Provident Fund (the Fund) as at 31 August 2012, as set out on pages 30 to 31.

The information contained in Schedule IB has been extracted from the Fund’s underlying accounting records that were the subject of our audit engagement on the annual financial statements and forms the subject matter of this engagement. Our audit of the annual financial statements of the Acumen Preservation Pension Fund for the period ended 31 August 2012 was conducted in accordance with International Standards on Auditing and in our report we expressed an unmodified opinion on the financial statements, prepared, in all material respects, with the Regulatory Reporting Requirements for Retirement Funds in South Africa. The Board of Trustees’ Responsibility for Schedule The Board of Trustees is responsible for the preparation of the Schedule in accordance with the Regulatory Reporting Requirements for Retirement Funds in South Africa and in compliance with the Regulation, and for such internal control as the Board of Trustees determines is necessary to enable the preparation of the Schedule that is free from material misstatements, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on the Schedule 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 financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Schedule. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the Schedule, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and presentation of the Schedule 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 entity’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 Schedule. We believe that the audit evidence that we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, Schedule IB ‘Assets of the fund held in compliance with Regulation 28’ as at 31 August 2012 by Abacus Umbrella Provident Fund has been prepared, in all material respects, in accordance with the requirements of Regulatory Reporting Requirements for Retirement Funds in South Africa and in compliance with the Regulation.

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