Governance and finance ยท Lesson 14 of 15

Surplus, dividends and funds

On Surplus & Member Returns, the funds and their shares of the surplus are read under Funds & equity, then a draft for 2025 with an audited surplus of 6,000,000 shillings is created, calculated, given the general meeting's and the regulator's approvals, and submitted for posting to a checker.

About 20 minutes

Key ideas

1

Funds & equity

Under SACCOS, open Surplus & Member Returns, then Funds & equity. Each fund takes its share of the surplus, and the statutory reserve never goes below 20%. Manage sets a fund's share, and where it stops growing.

2

A draft from the audited surplus

Back on Surplus & Member Returns, choose New draft. Adili notes when the ledger year isn't closed yet. In our example: the year 2025, an audited surplus of 6,000,000 shillings, a 20% statutory reserve, an 8% dividend on shares and a 3% bonus on compulsory savings. Then choose Create draft.

3

Reserve and funds first

Choose Calculate. The reserve and the funds come off the surplus first, and the rest is retained. Below that, each member's line shows the dividend, the bonus, the tax withheld and the net.

4

Two approvals, then a checker

Record approval takes the general meeting's resolution and the regulator's approval reference: dividends need both. Then choose Submit for posting and confirm. A checker approves it before any money moves.

Practice

Try it in your training organization

  1. 1. Under SACCOS, open Surplus & Member Returns, then Funds & equity, and find the statutory reserve's share of the surplus.
  2. 2. Choose Manage on a fund and read its share and where it stops growing, then close the form without saving.
  3. 3. Go back, choose New draft, read the notice about the ledger year, and enter training figures, for example the year 2025, an audited surplus of 6,000,000, a 20% reserve, an 8% dividend and a 3% bonus; then choose Create draft.
  4. 4. Choose Calculate and read the reserve, the funds and what is retained, then each member's dividend, bonus, tax withheld and net.
  5. 5. Choose Record approval and enter training references for the general meeting's resolution and the regulator's approval.
  6. 6. Choose Submit for posting and confirm, and leave the approval to a checker.

Check yourself

Watch the video and take the quiz

Sign in to watch this lesson's video, answer its 4 questions and count it towards your certificate. Your progress is saved.

Open in my learning