Stakeholder report - Lombard Insurance

vision
With the Foundation’s roots in the Lombard Insurance Company and its close
association with the construction industry, the Foundation’s vision is:
- Prosperity for all South Africans by having access to basic infrastructure
(water, electricity, transport, housing, health and education), by means of
- providing study opportunities for academically deserving South
Africans from disadvantaged backgrounds who will help
deliver this infrastructure.
introduction
George Lombard founded the Lombard Insurance
Company Limited in 1990, providing performance
guarantees on behalf of contractors in the construction industry.
Lombard Insurance has since diversified its
specialist short-term commercial insurances and
is today the largest insurance guarantor in South
Africa. Living up to the legacy of its founder,
Lombard Insurance is proudly associated with
its large client base, from small emerging
contractors to large engineering companies
listed on the Johannesburg Stock Exchange.
Through the provision of guarantees, George Lombard and his
company helped to grow many of his clients to where they are today.
When George passed away in 2011, a foundation was established
to continue his legacy. The George Lombard Education Foundation was registered at the end of 2011 and received Public
Benefit Organisation (PBO) status from the South African
Revenue Services (SARS) in terms of the Income Tax Act
(no. 58 of 1962).
mission
The Foundation provides bursaries for undergraduate studies in civil engineering (currently only at the University of Witwatersrand). The target student is a
South African citizen from a disadvantaged background who shows academic
excellence.
strategy
By 2016, the Foundation aims to provide four bursaries to undergraduate
students in civil engineering and by 2020, ten bursaries. The Foundation
aims to grow and administer its capital and donor funding in order to
achieve this goal.
vision
The Foundation aims to provide four bursaries by 2016
and ten bursaries by 2020.
who we are
volunteers
With the exception of Lorraine Danks (one of George Lombard’s two daughters), all
trustees and volunteers are employees of Lombard Insurance Company. Each
person involved with the Foundation is passionate about its cause and is excited to
be part of it. We approach everything with excellence and strive to make a huge
impact in the lives of the young people that the Foundation serves.
The trustees convene formal quarterly meetings to manage and administer the
affairs of the Foundation. There are also activities that take place throughout
the year, such as the selection of new students and mentoring. The Foundation
accounts to its stakeholders through an annual report of its activities and
finances, and also has committees to deal with student selection, finances
and risk.
Beatrice Maseko
CA (SA)
Financial officer
Robert Tebele
Completing final year of BCom
(Accounting Sciences)
Financial administrator
Ilona Poonan
Masters in Management
People development
trustees
Peter Suremann
BEng Hons (Civil), MBA, Pr Eng
Trustee and Chairman
Stephen Vivian
BCom LLB
Trustee and Secretary
Lorraine Danks
BA (Lang & Lit), MSc Pharm
Trustee
Tracy Kachelhoffer
Dipl. Graphic Design
Marketing and
communications
Matthew Lawson
MBA
Chairman of Lombard
Insurance Company CSI
Louise Bosman
Mentorship programme
Agi Szalontai
MA (Industrial Psychology)
Bursary administration
committees
Currently the only committee is the Student Selection Committee (made up of Peter Suremann, Lorraine
Danks and Bigboy Maphosa). The Foundation will form other committees to uphold the principles of
good governance.
prosperity
for all
Peter Hillbrook
CA (SA), ACIS, MBA
Trustee
Bigboy Maphosa
HND Civil Engineering (Structures),
Executive Development Programme
Trustee
commitment
what we offer
Whilst the Foundation provides bursaries, its aim is to support, guide and mentor
a student to become a well-rounded graduate who can quickly integrate into his
or her working environment to make a significant and positive impact for the
greater good of South Africa.
bursaries
The Foundation’s bursaries provide for tuition fees, accommodation costs
and books for students starting their second year of studies towards a
degree in civil engineering. The bursary is renewable annually until the
completion of the degree, subject to the student’s performance. The
current cost of these bursaries is in the order of R 105,000 per student
per year.
mentorship
The Foundation provides support and mentoring to the students
during the course of their studies. Regular and easy contact with
bursars is therefore an important consideration. As the Foundation
is based in close proximity to the campus of the University of the
Witwatersrand (Wits), it targets and supports students at this
institution. The Foundation has established a relationship with
Wits’ Faculty of Engineering and the Built Environment, and is
also registered with Wits as a bursary provider.
Lombard Insurance Company employees - who seek personal
growth and development in mentoring others - are trained to
become mentors and are then paired with students. These
volunteer mentors are suitable to guide an undergraduate
through student life, with their role ranging from a passive
listener providing affirmation of the student’s ideas, through
to active engagement and guidance in developing the
student.
placement
Through its close contact with the construction industry, the Foundation facilitates the
placement of students with engineering and construction companies to do compulsory
vacation training.
The Foundation does not require bursars to repay or work back their bursaries after
completion of their studies. The Foundation will, however, facilitate the placement of
young graduates with engineering and construction companies where the graduate can
gain sufficient experience in order to register as a professional engineer.
additional support
Through the Lombard Insurance Company CSI programme, some additional funding is
available for ad hoc expenses such as a laptop computer or a personal development course.
our achievements
funding received
Shortly after the establishment of the Foundation was considered, Lombard Insurance received an
unexpected dividend from Consort Technical Underwriting Managers (a Lombard Insurance Company
underwriting partner) and it decided to contribute the funds to the Foundation. The Foundation has
since accumulated a capital fund in excess of R1,3 million and after paying its bursary commitments, the
Foundation has invested the greatest part of this in an investment fund to preserve and grow the capital
for future bursary expenditure.
Lombard Insurance Company’s CSI programme will also make ongoing contributions to the Foundation.
leadership
our achievements
why donate?
resources
In order to achieve its goals, the Foundation appeals for donations from all sectors, particularly
the clients and partners of Lombard Insurance Company. Donations of any value, whether
once-off or recurring are welcomed.
The trustees have enrolled the support of a number of enthusiastic volunteers, who each bring expertise and
experience to the Foundation.
budget
The Foundation has also identified and enlisted a number of mentors who have volunteered their time and
expertise to mentor the bursary recipients.
bursaries awarded
To date, the Foundation has provided two all-inclusive bursaries to two deserving individuals.
The first bursary was awarded to Hakelani Edward Mukhari in 2013. Edward successfully completed his second
year of studies in 2013 and his bursary was renewed in 2014 to complete his third-year studies.
Edward hails from Hlanganani in
Limpopo where the poor infrastructure
inspired him to study civil engineering
so that he could improve this and other
similar needy areas. He believes in
overcoming any challenge that crosses
his path. Edward enjoys playing soccer
and chess. He is pictured here (left)
with his mentor, Chris Buchan (right).
The second bursary was awarded in
2014 to Neo Tony Masango, who was
enrolled for his second year of studies
in civil engineering during the year.
Neo is from Mamelodi. He is a determined individual and believes he will be
an asset to any company he is part of.
He is passionate about civil engineering
as “it is a medium with which the world
can be made a better place”. Neo
enjoys sketching (art) and reading. Neo
(right) is pictured here with his mentor
Shalina Chettiar (left).
The Foundation’s staged approach to offer ten bursaries by 2020 is shown below. The budgeted
bursary expenditure for 2015 is R 356,000.
The Foundation anticipates donor funding to come from once-off contributions as well as recurring
contributions. Whilst distributing the maximum number of bursaries that the available funding allows
for, the Foundation would like to accumulate a capital fund such that the annuity income will pay for
future bursary expenses. Until such time as the capital fund has grown to a sustainable level, bursaries
will be funded through a combination of annuity income from the capital base, as well as from recurring
donations.
R1 899 00
R1 566 000
R1 255 000
Targeted number of students
Estimated funding required
R 843 000
R 513 000
R 356 000
3
4
2015
2016
6
2017
8
9
10
2018
2019
2020
community
financial report
The unaudited financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) by Beatrice Maseko CA (SA),
financial officer of the George Lombard Education Foundation.
comprehensive income
For the year ended 28 February 2014
benefits for donors
12 Months to
28 Feb 2014
R
16 Months to
28 Feb 2013
R
Donations received
Other income
Revenue
115,000
15,402
130,402
1,000
4
1,004
Operating expenses
(609)
(307)
Surplus for the year
129,793
686
12 Months to
28 Feb 2014
R
16 Months to
28 Feb 2013
1,330,480
1,330,480
1,330,480
686
686
686
1,200,00
130,480
1,330,480
686
686
The Foundation has much value to offer its bursars and donors, namely:
1. The Foundation is a registered Public Benefit Organisation in terms of Section
18A of the Income Tax Act of 1962. The Foundation can therefore provide
income tax certificates in respect of all donations.
2. In terms of the Broad-Based Black Economic Empowerment (BBBEE) Act
(no. 53 of 2003) and the various sector charters that flow from this act,
donations to the Foundation will generally contribute towards a donor’s
BBBEE scorecard. It is advisable to confirm this with the donor company’s
BBBEE rating agency.
3. The Foundation understands the academic and training requirements
of bursars and can offer them a comprehensive programme.
4. With its sound governance and financial management, the Foundation is well positioned to administer its funds to make a positive
contribution to South Africa.
adding
value
financial position
As at 28 February 2014
assets
ASSETS
Current assets
Cash and cash equivalents
Total assets
EQUITY
Trust capital
Accumulated surplus
Total equity