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BADISA
Registration number as non profit organisation : 011-891
PROGRAM: ALTA DU TOIT AFTERCARE
ANNUAL FINANCIAL STATEMENTS - 31 MARCH 2020
BADISA
Registration number as non profit organisation : 011-891
PROGRAM: ALTA DU TOIT AFTERCARE
ANNUAL FINANCIAL STATEMENTS - 31 MARCH 2020
INDEX PAGE
Report of the Independent Auditors 1 - 2
Declaration of Management Board 3
Balance Sheet 4
Income Statement 5 - 7
Cash Flow Statement 8
Appendix 1 9
Notes to the Annual Financial Statements 10 - 15
Basis for qualified opinion
Emphasis of matter
Responsibilities of the management board for the annual financial statements
QUALIFIED REPORT OF THE INDEPENDENT AUDITORS TO THE CHAIRMAN AND THE MEMBERS
OF THE MANAGEMENT BOARD OF ALTA DU TOIT AFTERCARE
We have audited the annual financial statements of Alta du Toit Aftercare set out on page 4 - 15, which
comprise the statement of financial position as at 31 March 2020, and the statement of comprehensive
income and statement of cash flows for the year then ended, and notes to the annual financial statements,
including a summary of significant accounting policies.
In our opinion, except for the possible effect of the matter described in the basis for qualified opinion
section of our report, the annual financial statements present fairly, in all material respects, the financial
position of Alta du Toit Aftercare as at 31 March 2020, and its financial performance and cash flows for the
year then ended in accordance with accounting policies as set out in note 1 in the financial statements.
In accordance with similar organisations, it is not feasible for the assosiation to institute accounting controls
over cash collections from donations, fundraisers and membership fees prior to initial entry of the
collections in the accounting records. Accordingly, it was impracticle for us to extend our examination
beyond the receipts actually recorded.
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of the Annual
Financial Statements section of our report. We are independent of the organisation in accordance with
sections 290 and 291 of the Independent Regulatory Board for Auditors' Code of Professional Conduct for
Registered Auditors (Revised January 2018), parts 1 and 3 of the Independent Regulatory Board for
Auditors' Code of Professional Conduct for Registered Auditors (Revised November 2018) (together the
IRBA Codes) and other independence requirements applicable to performing audits of financial statements
in South Africa. We have fulfilled our other ethical responsibilities, as applicable, in accordance with the
IRBA Code and in accordance with other ethical requirements applicable to performing audits in South
Africa. The IRBA Code is consistent with the corresponding sections of the International Ethics Standards
Board for Accountants' Code of Ethics for Professional Accountants and the International Ethics Standards
Board of Accountants' International Code of Ethics for Professional Accountants (including International
Independence Standards) respectively. We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our qualified opinion.
The management board are responsible for the preparation and fair presentation of the annual financial
statements in accordance with accounting policies as set out in note 1 in the financial statements, and for
such internal control as the management board determine is necessary to enable the preparation of annual
financial statements that are free from material misstatement, whether due to fraud or error.
Without modifying our opinion, we draw your attention to note 9 in die annual financial statements relating
to the COVID-19 epidemic.
Responsibilities of the management board for the annual financial statements (continue)
Auditor's responsibilities for the audit of the annual financial statements.
•
•
•
•
•
…………………………………………………….THERON DU PLESSIS DURBANVILLE INC. 31 July 2020
Chartered Accountants (SA) Durbanville
Registered Auditors
Suzanne Petronella de Wet CA (SA), RA
Director
In preparing the annual financial statements, the management board are responsible for assessing the
program's ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless the management board either intend to liquidate
the program or to cease operations, or have no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the annual financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with International Standards on Auditing will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these annual financial statements.
As part of an audit in accordance with International Standards on Auditing, we exercise professional
judgement and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the annual financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit 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 program's internal control.Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the management board.
Conclude on the appropriateness of the management board's use of the going concern basis of
accounting and based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the program’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditors' report to the related disclosures in the annual financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditors' report. However, future events or conditions may cause the program to cease to
continue as a going concern.
Evaluate the overall presentation, structure and content of the annual financial statements, including the
disclosures, and whether the annual financial statements represent the underlying transactions and
events in a manner that achieves fair presentation.
We communicate with the management board regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that
we identify during our audit.
ALTA DU TOIT AFTERCARE 4
BALANCE SHEET AT 31 MARCH 2020
2020 2019
Note R R
ASSETS
Non-Current Assets 10,012,509 10,155,477
Fixed assets 2 1,044,222 1,248,644
Investments 3 8,968,287 8,906,833
Current Assets 891,651 917,468
Accounts receivable 4 174,714 651,930
Inventory 10,326 16,590
Bank balance 699,079 239,378
Cash on hand 7,532 9,570
10,904,160 11,072,945
EQUITY AND LIABILITIES
Capital and Reserves 9,499,595 9,576,711
Retained surplus 5 5,444,230 5,902,434
Special Reserves (Appendix 1) 4,055,365 3,674,277
Current Liabilities 1,404,565 1,496,233
Accounts payable 6 1,404,565 1,496,233
10,904,160 11,072,945
ALTA DU TOIT AFTERCARE 5
INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2020
2020 2019
Note R R
INCOME
BOARD AND LODGING 9,400,414 8,609,891
Home 8,262,413 7,616,644
Flats 1,138,001 993,247
DONATIONS AND BEQUESTS 3,180,855 4,710,030
Individuals 1,395,970 1,194,345
Congregation 170,370 193,754
Community chest 50,000 -
Inheritance 309,926 -
Goods in kind 29,470 11,570
Businesses 90,804 241,893
Other donations 138,800 22,915
Businesses (for capital expenditure and expenditure capitalised) 995,515 3,045,553
RECOVERY OF EXPENSES 235,525 193,117
FUNDRAISER 888,534 845,902
INCREASE / (DECREASE) IN MARKET VALUE OF SHARES 9,714 581,533
BAD DEBTS RECOVERED 1,653 3,206
INTEREST RECEIVED 487,376 399,603
SALE OF PRODUCTS: GROSS PROFIT 440,876 612,282
INSURANCE CLAIMS 29,276 13,388
PROFIT FROM SALE OF ASSETS - 82,595
SUBTOTAL 14,674,223 16,051,547
Subsidies 7 3,743,100 3,494,283
OPERATING INCOME TOTAL 18,417,323 19,545,830
EXPENSES
SALARIES 9,321,574 8,692,485
Administrative 904,398 453,475
Household 5,679,304 5,382,282
Professional 1,727,985 1,709,333
Medical aid contributions 215,078 246,317
Pension fund contributions 657,150 606,691
Unemployment Insurance Fund (UIF) 82,248 124,177
Compensation commissioner 15,374 30,970
Increase / (Decrease) in leave entitlement 11,900 86,551
Staff Development 24,690 41,490
Staff recruitment 3,447 11,199
Subtotal carried forward 9,321,574 8,692,485
ALTA DU TOIT AFTERCARE 6
INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2020 (vervolg)
2020 2019
Note R R
Subtotal brought forward 9,321,574 8,692,485
TRANSPORT EXPENSES 66,838 42,257
Repairs and maintenance 61,532 37,815
Insurance and license 5,306 4,442
OFFICE EXPENSES 1,875,797 1,758,673
Municipal services
- Electricity and gas 738,807 553,377
- Water and sanitation 497,538 457,324
- Refuse removal 35,672 33,913
- Rates and taxes 55,868 -
Advertising - 260
Printing and stationary 64,654 47,938
Levies, registrations and affiliations 53,687 50,651
Equipment rental 120,309 219,717
Telephone and postage 121,494 130,386
Insurance 138,218 119,527
Replacements 14,841 90,489
Computer expenses 24,789 25,871
Clothing 9,920 29,220
LAND AND BUILDINGS 851,395 1,521,191
Maintenance 493,459 1,229,121
Security 357,936 292,070
HOUSEHOLD EXPENSES 2,630,909 2,394,309
Cleaning 34,022 53,506
Groceries 2,142,444 2,031,517
Linen 17,359 1,070
Medical 143,061 23,820
Education and relaxation 19,199 16,930
Allowance 175,968 175,978
Replacements 3,908 3,260
Transport 88,837 73,826
Consumable equipment 261 -
Household gas 5,850 14,402
Subtotal carried forward 14,746,513 14,408,915
ALTA DU TOIT AFTERCARE 7
INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2020 (vervolg)
2020 2019
Note R R
Subtotal brought forward 14,746,513 14,408,915
SPECIAL SERVICES 1,962,982 1,940,615
Bank charges 102,774 91,262
Fundraising 613,031 760,102
Consultation and professional fees 216,850 132,794
Bad debts 16,521 99,178
Public relations and marketing 4,325 7,903
Audit fees 19,476 18,300
Interest paid 11,686 -
Discount granted 897,319 826,421
Staff welfare 4,780 4,655
Fees received through donations 76,220 -
EXPENSES BEFORE DEPRECIATION 16,709,495 16,349,530
DEPRECIATION 237,479 251,285
Furniture and equipment 74,376 71,173
Computer equipment 75,822 79,169
Motor vehicles 87,281 100,943
OPERATING EXPENSES TOTAL 16,946,974 16,600,815
NET SURPLUS / (DEFICIT) FOR THE YEAR
OPERATING SURPLUS / (DEFICIT) FOR THE YEAR 1,470,349 2,945,015
CAPITAL EXPENDITURE (1,525,309) (2,924,653)
OPERATING / (DEFICIT) AFTER CAPITAL EXPENDITURE (54,960) 20,362
MOVEMENT IN SPECIAL RESERVE FUND
Recoveries from: 28,965 -
Transfer of bank charges for special reserve funds 28,965 -
Contributions to: (410,052) (19,779)
- Maintenance Fund (72,574) (120,900)
- Aid Fund (172,738) 164,073
- Transfer of market value adjustment on special reserve funds (6,486) -
- Transfer of interest on special reserve funds (158,254) (62,952)
NET SURPLUS / (DEFICIT) FOR THE YEAR (436,047) 583
ALTA DU TOIT AFTERCARE 8
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2020
2020 2019
Note R R
CASH FLOW FROM OPERATING ACTIVITIES 552,174 1,001,892
Cash receipts from clients and funders 18,874,905 19,830,919
Cash payments to employees and suppliers (18,798,421) (19,228,630)
Cash utilised by operating activities 1 76,484 602,289
Investment income 487,376 399,603
Interest paid (11,686) -
CASH FLOW FROM INVESTING ACTIVITIES (94,511) (896,237)
Fixed assets purchased (33,057) (266,777)
Proceeds from sale of Assets - 85,000
Decrease / (Increase) in investments (61,454) (714,460)
NET INCREASE / (DECREASE) IN CASH AND CASH 457,663 105,655
EQUIVALENTS
CASH AND CASH EQUIVALENTS BEGINNING OF THE YEAR 248,948 143,293
CASH AND CASH EQUIVALENTS END OF THE YEAR 706,611 248,948
1
Net surplus / (deficit) for the year (436,047) 583
Adjustments for:
- Depreciation 237,479 251,285
- Investment income (487,376) (399,603)
- Gain on sale of assets - (82,595)
- Pay interest 11,686 -
- Last year correction (22,157) -
- Movements in reserve Fund 381,087 19,779
Operating income before working capital changes (315,328) (210,551)
Changes in working capital
- (Increase) / Decrease in receivables 477,216 524,112
- (Increase) / Decrease in inventories 6,264 (5,555)
- Increase / (Decrease) in creditors (91,668) 294,283
Cash utilised by operating activities 76,484 602,289
RECONCILIATION OF CASH UTILISED BY
OPERATING ACTIVITIES WITH NET SURPLUS /
(DEFICIT) FOR THE YEAR
ALTA DU TOIT AFTERCARE 9
RESERVE FUNDS (APPENDIX 1)
Mainte-
nance Aid 2020 2019
Fund Fund Total Total
R R R R
Balance beginning of the year 2,621,420 1,052,857 3,674,277 3,654,498
Add: 891,830 1,741,345 2,633,175 1,369,779
Contributions 792,179 1,676,256 2,468,435 1,306,827
Adjustment in Market Value 4,564 1,922 6,486 -
Interest 95,087 63,167 158,254 62,952
Less: (739,982) (1,512,105) (2,252,087) (1,350,000)
Drawings (719,604) (1,503,518) (2,223,122) (1,350,000)
Bank charges (20,378) (8,587) (28,965)
Balance end of year 2,773,268 1,282,097 4,055,365 3,674,277
ALTA DU TOIT AFTERCARE 10
NOTES TO THE FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES
1.1 Basis of presentation
1.2 Fixed assets
Fixed assets are tangible items that:
•
• expected to be used in more than one period.
• Furniture and equipment - 10% according to the diminishing balance method; • Computer equipment - 33.33%, according to the straight-line method;
In addition to the above:
•
•
•
1.3
Financial instruments are initially measured at the transaction price. This includes transaction costs,
except for financial instruments measured at fair value through profit or loss.
Financial instruments at amortised cost
Vehicles and equipment are carried at cost less accumulated depreciation and accumulated
impairment losses. Fixed assets received as donations or bequests, are stated at nominal value.
Cost includes all costs incurred to deliver to the place the asset and the state that is necessary to
enable it to function in the manner contemplated by management.
Held for use in the production or supply of goods and services, for rental to others or for
administrative purposes; and
• Vehicles - 20% according to the diminishing balance.
Depreciation on vehicles and equipment are provided, using methods that are appropriate to write off
the depreciable amount of the assets over their economic life. The following depreciation and
economic lives are allocated to the respective assets:
The financial statements have been prepared on the historical cost basis and are presented in South
African Rand. The accounting policies are consistent with those of the previous period. The following
are the principal accounting policies used.
Gains and losses on sales are determined by comparing proceeds with the carrying amount and are
recognized in surplus or deficit in the period.
Financial instruments
Initial measurement
Purchases of tangible assets with a cost of R3,000 and less recognized as incurred an expense in
the period;Purchases of tangible assets with a cost of between R3,000 and R7,000 is capitalized, but the full
amount will be written off as depreciation in the year of purchase;
Capital improvements to buildings under lease agreements are recognised directly in the surplus or
deficit for the year in which it incurred.
Debt securities, including loans payable and receivable and trade receivables and trade payables are
then measured at amortized cost using the effective interest rate method. Debt securities that are
classified as current assets or current liabilities are measured at the undiscounted amount of cash
received or expected to be paid.
At the end of each reporting period the carrying amount of assets held are reviewed in this category, to
determine whether there is objective evidence of impairment. If so, it is recognized as an impairment
loss.
ALTA DU TOIT AFTERCARE 11
NOTES TO THE FINANCIAL STATEMENTS
1.3
Obligations to get a loan is measured at cost less any impairment.
Financial instruments at fair value
All other financial instruments are measured at fair value through surplus or defecit.
1.4 Special reserve funds
1.5 Short-term employee benefits
1.6 Goverment grants
1.7 Income recognition
Other income earned is recognized on the following bases:
•
• Donations, bequests and fundraising - when the amount is received.
• Rent / accommodation income - as it accrues, according to the agreement conditions.
• Admin and service fees - in the period the service is provided.
1.8 Borrowing costs
Borrowing costs are recognised as an expense in the period in which they are incurred.
Financial instruments (Continued)
Revenue is measured at the fair value of the consideration received or receivable and represents the
amounts receivable for goods and services provided in the normal course of business, net of trade
discounts and volume rebates, and value added tax.
Revenue is recognised upon delivery of products and customer acceptance, net of value added tax
and discounts.
Interest income as it accrues (taking into account effective yield on asset) unless collectability is in
doubt.
Financial instruments at cost
Equity instruments that are not publicly traded and whose fair value otherwise can be reliably
measured, are measured at cost less any impairment. These include equities held in unlisted
investments.
The values shown represent capital and accumulated investment return of the funds of which the
whole yield may be used for specified objectives.
The cost of short-term employee benefits (those payable within 12 months after the service is rendered
such as paid leave) is recognized in the period in which services are delivered and are not discounted.
Grants that do not impose specified future performance conditions are recognised in income when the
grant proceeds are receivable. Grants that impose specified future performance conditions are
recognised in income only when the performance conditions are met. Grants received before the
revenue recognition criteria are satisfied are recognised as a liability. Grants are measured at the fair
value of the asset received or receivable.
ALTA DU TOIT AFTERCARE 12
NOTES TO THE FINANCIAL STATEMENTS
1.9 Impairment of assets
At each reporting date evaluating is done on any indication whether there has been a drop in an
asset's value. If there is any indication that an asset's value may have declined, then the recoverable
amount for the individual asset is determined. If the recoverable amount of an individual asset can not
be determined, the recoverable amount of the cash-generating unit to which the asset belongs, is
determined.
If an impairment is therefore reversed, the carrying amount of the asset (or group of related assets) is
amended to its recoverable amount, but no more than the amount that would have been determined if
no impairment adjustments were made for the asset ( or asset group) in prior years. The reversal of an
impairment is recognised immediately in surplus or deficit.
ALTA DU TOIT AFTERCARE 13
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2020 2019
R R
2 FIXED ASSETS
2.1 FURNITURE AND EQUIPMENT
Cost price beginning of the year 1,334,087 1,197,843
Plus: Purchases 17,906 136,244
Cost price end of the year 1,351,993 1,334,087
Less: Accumulated depreciation (671,560) (597,184)
Carrying value end of the year 680,433 736,903
2.2 MOTOR VEHICLES
Cost price beginning of the year 1,005,243 874,710
Plus: Purchases - 130,533
Cost price end of the year 1,005,243 1,005,243
Less: Accumulated depreciation (656,120) (568,840)
Carrying value end of the year 349,123 436,403
2.3 COMPUTERS
Cost price beginning of the year 308,371 308,371
Plus: Purchases 15,151 -
Cost price end of the year 323,522 308,371.000
Less: Accumulated depreciation (308,856) (233,033)
Carrying value end of the year 14,666 75,338
2.4 LAND AND BUILDINGS
TOTAL ASSETS
Cost price beginning of the year 2,647,701 2,380,924
Plus: Purchases 33,057 266,777
Cost price end of the year 2,680,758 2,647,701
Less: Accumulated depreciation (1,636,536) (1,399,057)
Carrying value end of the year 1,044,222 1,248,644
3 INVESTMENTS
Sanlam Unit Trust * 8,353,445 6,028,517
Absa Bank Investments 589,316 2,841,267
450 Samlam shares * 22,991 33,192
115 RMI Holdings shares * 2,535 3,856
8,968,287 8,906,833
* The investment is shown at market value. - -
The Land and Buildings of Alta du Toit Aftercare is the property of
the Goeie Hoop Behuisingsmaatskappy (GHBM) and are shown
as such in their accounting records.
ALTA DU TOIT AFTERCARE 14
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2020 2019
R R
3 INVESTMENTS (Continued)
Apportioned as follows:
Alta du Toit Aftercare 4,912,922 5,353,456
Special Funds (See Appendix 1) 4,055,365 3,553,377
Maintenance Fund 2,773,268 2,500,520
Aid Fund 1,282,097 1,052,857
8,968,287 8,906,833
4 ACCOUNTS RECEIVABLE
Trade receivables 154,763 325,274
VAT Receivable - 90,160
Prepaid expenses 19,951 8,945
Resident moneys receivable - 22,157
Provision for income receivable - 205,394
174,714 651,930
5 RETAINED SURPLUS
Balance beginning of the year 5,902,434 5,901,851
Prior year adjustment (22,157) -
Surplus / (deficit) for the year (436,047) 583
Balance end of the year 5,444,230 5,902,434
6 ACCOUNTS PAYABLE
Accounts payable 167,219 627,006
Prepaid board and lodging 470,343 183,272
Provision for leave 281,752 295,492
VAT payable 32,545 -
Provision - City of Cape Town - 350,179
Resident Moneys - 5,080
Badisa Management programme - 204
Donations receivable 425,006 35,000
Staff savings payable 27,700 -
1,404,565 1,496,233
ALTA DU TOIT AFTERCARE 15
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
2020 2019
R R
7 SUBSIDY
- Department of Social Development 3,743,100 3,494,283
3,743,100 3,494,283
(Subsidy in respect of April 2019 - March 2020)
Department of Health distributed as follows:
Provincial administration
- Western Cape 3,743,100 3,494,283
Department of Social Development 3,743,100 3,494,283
8 RESIDENT MONEYS
Trust funds on hand at 31 March 2020 represented by:
Residents funds 482,235 489,362
House Fund 12,926 12,519
495,161 501,882
and invested as follows:
Bank balance and cash 495,161 501,882
495,161 501,882
9 EVENTS AFTER REPORTING PERIOD
At year-end, the South African government declared a state of disaster, to help fight the COVID-19
epidemic. A 21-day national lockdown was announced by the president and was implemented on the
27th of March 2020. On 9 April 2020, the president announced that the lockdown will be extended for
an additional 14 days and on 23 April it was announced that the economy will be opened on a risk-
based approach from the 1st of June 2020.
The current situation had far-reaching effects on the economy of which the future consequences are
still unknown.
The management board considered the impact of the COVID-19 pandemic on the going concern of the
program and the program is affected as the operating activities partially had to stop. As an result of the
aforementioned, a reduction of funds through donations and fundraising is realised.
The management board is monitoring the impact that the pandemic has on the program on an
continuous basis and is positive that additional funding from donors, as well as the application of
available reserves, will maintain the going concern of the program.
Recommended