The Company’s financial statements are audited on a yearly basis by Matamba and Company Chartered Accountants Zimbabwe. The Company operates on a budgetary system with budgets being set and approved at the beginning of each financial year. These are revised every half-year taking into account the performance to date, and prevailing economic conditions and expected performance.
Management accounts are produced by the 7th of the following month and significant variances from approved budgets are analyzed.
Control Monitoring Systems
Clarion uses the following information systems; Pastel Accounting Software, i3ms (an insurance package), Bellina Payroll System, Internet, E-Mail and Call Logging System.
In addition the Finance and Investment Committee at Board policy level deals with compliance of laid down procedures, internal controls and risk management. This Committee also seeks to ensure accountability and proper management of Clarion’s finances. The Chief Executive Officer assisted by the Finance Manager is responsible for enforcing compliance with laid down procedures.
The Company has put in place the following manuals that are used as guidelines by employees in their day to day operations; Accounting and Procedures Manual, Underwriting Manual, ICT policy document, Credit Procedures Manual, Procurement Procedures Manual and Human Resources Manual.
Five Year Plan – Projected Income Statement
|Net Premium Income||3,360,000||4,060,000||4,900,000||5,880,000|
|Insurance Reserves (Increase)/Decrease||(528,000)||(638,000)||(770,000)||(924,000)|
|Net Earned Premium||2,832,000||3,422,000||4,130,000||4,956,000|
|Net Claims Incurred||(1,440,000)||(1,740,000)||(2,100,000)||(2,520,000)|
|Net Commission Paid||(240,000)||(290,000)||(350,000)||(420,000)|
|Net Profit/( Loss) Befor tax||690,000||829,800||1,009,530||1,219,331|
|Assumption: To grow the GPW and Net Profit by at least 20% every year.|