ESSA Annual Report 2014 (2) - ESSA: Economic … Report 2014 Tukkiewerf 2/21 Lynnwood road University of Pretoria Pretoria 0002 South Africa Tel: +27 12 420 3525 E-mail: [email protected]

AnnualReport2014Tukkiewerf2/21LynnwoodroadUniversityofPretoriaPretoria0002SouthAfricaTel:+27124203525E-mail:[email protected]:www.essa.org.za

THE ECONOMIC SOCIETY OF SOUTH AFRICA 1

Contents

Page

1 Agendaforthe2015annualgeneralmeeting 2

2 Minutesofthe2014annualgeneralmeeting(forapproval) 3

3 Membership:2013and2014 5

4 Council:2014 6

5 Branchsecretaries 7

6 ESSAprizeentries:2014 8

7 TheEconomicSocietyofSouthAfrica:Constitutionandrules–Suggestedchanges

9

8 Branchactivities:2014 15

9 Annualfinancialstatementsfor2013and2014 19


AGENDA

89thAnnualGeneralMeetingoftheEconomicSocietyofSouthAfricaDate: Thursday,3September2015Time: 11:25Venue: LeslieSocialScienceBuildingLS2A Uppercampus; UniversityofCapeTown; CapeTown1 Welcomeandapologies2 AddressbythePresident,ProfJLuiz3 Adoptionoftheagenda4 ConfirmationoftheminutesoftheAnnualGeneralMeetingheldon6October20145 AdoptionoftheannualreportoftheCouncilandthefinancialstatementsoftheSociety

andoftheJournalfor20146 Appointmentofauditorsforthe2015financialstatements7 ChangestotheConstitution8 Annualmembershipfeesfor20169 Prizewinnersfor201510 General11 Closing


Minutesofthe88thAnnualGeneralMeetingoftheEconomicSocietyofSouthAfrica

Monday,6October2014;18:00SEBSSeminarSuite,RoomNCB100;

NewCommerceBuilding;WestCampusoftheWitwatersrandUniversity;

Johannesburg1 WelcomeProfBurger(chair)welcomedalltotheAGM2 AdoptionoftheagendaTheagendawasadoptedwithoutchange.3 Confirmationoftheminutesoftheannualgeneralmeetingheldon26September2013Theminuteswereapproved.4 AdoptionoftheannualreportoftheCouncilandthefinancialstatementsoftheSociety

andoftheJournalfor2013MrBurrowsprovidedasummaryoftheannualreportandMrsPretoriusprovidedasummaryofthe2013auditedfinancialstatements.Theannualreport(excludingthefinancialstatements)wasapproved.5 Appointmentofauditorsforthe2014financialstatementsHuizenInc.wasappointedasauditorsforthe2014financialstatements.6 Annualmembershipfeesfor2015TheannualmembershipfeewasraisedfromR600(2014)toR630(2015)forordinarymembers,andfromR300toR315forstudentsandpensioners(above65)withlessthan25yearscontinuousmembership.Pensioners(above65)withmorethan25yearscontinuousmembershipwill,atthediscretionofCouncilpaynomembership..ThethreeyearordinarymembershipissetatR1800ifitispaidbeforetheendofFebruary2015.Internationalmemberswillpaytheordinarymembershipfeeof$80.8 Prizewinners:2014Founders'MedalsTheprizewinnersfor2014wereannouncedasfollows.


Founders'medalforHonoursreserachreportInstitution Title Candidate SupervisorUCT Unconditionalcashtransfersandchildren’s

educationoutcomes:evidencefromtheold-agepensionprogrammeinSouthAfrica

JessicaStandish-White ArdinFinn

Founders'medalforMaster'sresearchreportInstitution Title Candidate SupervisorUJ Theeffectsoflumpsumunconditionalgrantson

expenditureandrevenuedecisionsandperformanceofSouthAfricanmunicipalities

JugalMahabir FionaTregenna

Founders'medalforDoctoralthesisInstitution Title Candidate SupervisorKZN ThedevelopmentofthemiddleclassinSouth

AfricasincethetransitiontodemocracyJustinPaulVisagie ProfDPosel

US EssaysonDynamicMacroeconomics MaxRudibertSteinbach ProffBWSmitSAduPlessis

The prize winners and their supervisors were congratulated on their achievements, and theadjudicatorswerethankedfortheirworkinmakingrecommendationstoCouncil.9 GeneralTheAGMacceptedarecommendationthattheannualgeneralmeetingbechangedtoabiennialgeneral meeting (in conference years). The reason is the poor attendance of the AGM in nonconferenceyears.CouncilwillpreparethepossiblechangestotheconstitutionandwillpresentittotheAGMof2015fordiscussionandapproval.10 AddressbythePresident,ProfPBurger ProfBurgerdeliveredhispresidentialaddresswithtitle: "Wages, productivity, and labour's declining income share in post-Apartheid SouthAfrica."11 ClosingProfBurgerthankedallthatattendedtheAGM.HethankedtheJournalManagementCommittee,theExecutiveCommitteeandtheCouncilforalltheirsupportduringtheyear.HealsowelcomedProfJLuizasthenewpresidentforthenexttwoyears.


MEMBERSHIP

asat31December

Branch:Normal Honorary Lifetime Pension Student Total

2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014

CapeTown 45 70 2 2 3 3 4 4 5 3 59 82

EasternCape 20 15 0 0 1 1 0 1 5 4 26 21

FreeState 19 23 0 0 0 0 3 3 1 0 23 26

Johannesburg 151 159 1 1 1 1 3 4 8 8 164 173

KwaZulu-Natal 17 14 0 0 0 0 1 1 2 1 20 16

Limpopo 12 10 0 0 1 1 1 1 0 9 14 21

NorthWest 23 25 0 0 0 0 1 1 49 56 73 82

Pretoria 301 282 2 1 2 2 0 0 9 9 315 296

Stellenbosch 35 38 0 0 0 0 1 2 4 7 40 47

Foreign 40 43 0 0 3 3 0 0 1 1 44 47

Total 663 679 5 4* 11 11 14 19 84 98 777 811


COUNCIL:2014

BeforeAGM AfterAGMPresident: PBurger JLuizVice-President: JvandenHeever JvandenHeeverPresident-elect: JLuiz Elected/appointedintermsoftheConstitution:7(a)(v) MBittencourt MBittencourt DMDykes DMDykes MEllyne MEllyne WKrugell WKrugell LRangasamy LRangasamy WViviers WViviers7(a)(vi) SFKoch SFKoch - -7(a)(vii) SAduPlessis PBurger7(a)(viii) RWKParsons RWKParsons - PPerkins PPerkinsElectedbybranchesintermsof7(a)(iv)oftheConstitution:CapeTown EMuchapondwa IWillardEasternCape GFraser JSnowballJohannesburg IBotha LKeeton-StolkFreeState JPGeldenhuys APoolKwaZulu-Natal DPosel CVermaakLimpopo KSMMatjekana AGyekyeNorthWest AHeymans HBezuidenhoutPretoria MBreitenbach RSeymoreStellenbosch LeRBurrows MPvanSchoorSecretary: LeRBurrowsTreasurer: MPretorius


BRANCHSECRETARIES:2014

BranchandSecretary Contactdetails

CapeTownMarkEllyne

[email protected](079)1931115SchoolofEconomics,MiddleCampus,UniversityofCapeTown,PrivateBag,Rondebosch,CapeTown,7701

EasternCapeMichaelSale

[email protected](041)5042795DepartmentofEconomics,NelsonMandelaMetropolitanUniversity,POBox77000,PortElizabeth,6031

JohannesburgLyndalKeeton-Stolk

[email protected](011)7178065SchoolofEconomicandBusinessSciences,UniversityoftheWitwatersrand,PrivateBag3,Wits2050

FreeStateAntoniePool

[email protected](051)4013596DepartmentofEconomics,UniversityoftheFreeState,POBox339,Bloemfontein,9300

KwaZulu-NatalClaireVermaak

[email protected](031)2602577SchoolofAccounting,EconomicsandFinanceWestvilleCampus,UniversityofKwazuluNatal;PrivateBagX54001,Durban,4001

LimpopoA.Khangale

[email protected],UniversityofVenda,POBox823,Thohoyandou,0950

NorthWestRWaitt

[email protected](018)2991446SchoolforEconomics,North-WestUniversity,P/BagX6001,Potchefstroom,2521

PretoriaReynoSeymore

[email protected](012)4203525DepartmentofEconomics,UniversityofPretoria,POBox7335,LynnwoodRidge,0040

StellenboschMeltvanSchoor

[email protected](021)8083414DepartmentofEconomics,UniversityofStellenbosch,P/BagX1,Matieland,7602

Membershipenquiries: MrsTitiaAntonites, Phone:(012)4203525 Email:[email protected]


ESSAPRIZEENTRIES:2014SeetheAGMminutes(above)foralistofthe2014winners.1 Founders'medalforHonoursresearchreport:Institution Title Candidate SupervisorUP Corruptionandeconomicgrowth:evidencefrom

theSADCMariskeSteyn ManoelBittencourt

US aCriticalevaluationoftheincreaseofcustomsdutyonfrozenmeatoffowlsofthespeciesGallusDomesticus

ChrisHart NicolaTheron

NWU IstheRandacommoditycurrency? MargittevanderBerg AndreaSaaymanUCT Unconditionalcashtransfersandchildren’s

educationoutcomes:evidencefromtheold-agepensionprogrammeinSouthAfrica

JessicaStandish-White ArdinFinn

2 Founders'medalforMaster'sresearchreport:Institution Title Candidate SupervisorUS SpilloversofUnitedStatesQuantitiveeasingto

SouthAfricaPieterWillemvanLill StanduPlessis

UJ TheeffectsoflumpsumunconditionalgrantsonexpenditureandrevenuedecisionsandperformanceofSouthAfricanmunicipalities

JugalMahabir FionaTregenna

NWU ProfilingsectoralrisksofforeigndirectinvestmentinAfrica

ZahnéCoetzee HenriBezuidenhout

UP RecentMacroeconomicstabilityinSouthAfrica:goodpolicies,goodluckorboth

TumisangLoate NicolaiViegie

UCT DeterminantsofsmokinginitiationinSouthAfrica

NicoleVellios CornevanWalbeek

3 Founders'medalforDoctoralthesisInstitution Title Candidate SupervisorKZN ThedevelopmentofthemiddleclassinSouth

AfricasincethetransitiontodemocracyJustinPaulVisagie ProfDPosel

UJ SouthAfrica'seconomicintegrationwithBRICcountries

MustafaYavuzÇakır DrAKabundiCo/HGvanZyl

UP EssaysonDeterminants,SpilloversandPredictabilityoftheSouthAfricanStockReturns

MamphoModise Prof.RanganGuptaDr.ChristianeBaumeister

US EssaysonDynamicMacroeconomics MaxRudibertSteinbach ProffBWSmitSAduPlessis

NWU LessonslearntfromthedeficienciesoftheBaselAccordsastheyapplytoSolvencyII

JohanRGJacobs GaryvanVuuren

UCT FinancialLiberalisationandBankingCrisesinSubSaharanAfrica

GladysGamariel HaimAbrahams


THEECONOMICSOCIETYOFSOUTHAFRICA:CONSTITUTIONANDRULES(ForapprovalbytheAnnualGeneralMeetingoftheSocietyon4September2015)

1 NAME

TheSocietyshallbenamed:"TheEconomicSocietyofSouthAfrica",hereafterreferredtoastheSociety.

2 OBJECTIVES

TheobjectivesoftheSocietyaretopromotethediscussionofandresearchintoeconomicmatters,inparticularthoseaffecting South Africa, and, to this end, to enlist the active co-operation of all persons, of whatever school ofeconomicthought,capableofenlighteningthem.

3 METHODS

TheSocietyshallprovidefortheseobjectivesby:

3.1 arrangingforthewriting,readinganddiscussionofpapersoneconomicquestions;

3.2 thepublicationofaJournal;

3.3 anyothermeanswhichmayfurthertheaboveobjectives.

4 MEMBERS

4.1 AnypersonorinstitutioninterestedintheobjectivesoftheSocietymay,atthediscretionoftheCouncil,beenrolledasamemberuponapplicationtotheSecretaryoftheCouncil.

4.2 Candidatesformembershipmustsignanapplicationformand,ifenrolled,shallbedeemedtobeboundbytheConstitutionandRulesoftheSociety.

4.3 HonorarymembershipcanbeconferredbyCouncilonanypersonwhoinitsviewhasmadeadistinguishedcontributiontothefieldofeconomics,eitherintheoryorinpractice,nationallyandinternationallywhosemembership will benefit the Society. The award is made on the strength of a written submission by amember of the Society to Council detailing the reasons why the candidate should be admitted as anhonorarymember.

4.3 Members whose annual dues are not in arrear and honorary members shall be entitled to receive theJournalsoftheSocietyandtoattendallmeetingsoftheSocietyandanyofitsBranches.

4.5 Membersofatleasttwentyfiveyears'standingwhohavereachedtheageof65may,atthediscretionoftheCouncil,beadmittedasretiredmembers,payingnomembershipfeeswhileretainingalltheprivilegesofordinarymembership.

4.6.1 The annual rate of increase of dues payable by members shall be determined by the Biennial GeneralMeetingforthefollowingtwoyearsupontherecommendationoftheCouncil.

4.6.2 Annualduesshallbepayable to theTreasurerof theSocietywithinonemonthof thedateofenrolmentandthereafterwithinonemonthofthebeginningofthefinancialyear.

4.6.3 Writtennoticeshallbesenttomemberswhoseduesare inarrears. Ifmembershipduesare inarrearformorethantwoyears,theCouncilmayremovethenamesofsuchmembersfromthemembershiproll.TheTreasurershallnotifysuchmembers,aswellasSecretariesofBranchesconcerned,ofthedecisionoftheCouncil.

4.6.4 New members enrolled during any particular financial year shall be entitled to receive all the Journalsissuedduringsuchyear,providedsuppliesareavailable.

THE ECONOMIC SOCIETY OF SOUTH AFRICA

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4.7 AnymemberwishingtoresignfromtheSocietyshallgivewrittennoticetotheSecretaryoftheCouncil,butsuchmembershallbeliableforthefullannualduesforthefinancialyearduringwhichthememberresigns.

5 SUBSCRIBERS

5.1 Anyperson,firm,companyorinstitutioninterestedintheobjectivesoftheSocietymay,uponapplication,becomeasubscribertotheJournaloftheSociety.

5.2 ThefollowingshallapplytosubscriberadministrationbytheSecretary:

5.2.1 The subscription for the Journals shall be determined by the Council from time to time, payable to theSecretaryoftheJournalwithinonemonthaftertheacceptanceoftheapplicationandthereafterwithinonemonthofthebeginningofthefinancialyearoftheSociety.

5.2.2 Writtennoticeshallbesenttoanysubscriberwhosesubscriptionisnotpaidwithinonemonthoftheduedate,andifthesubscriptionisnotpaidbeforetheexpirationofonemonthfromthedateofsuchwrittennotice,Councilmayremovesuchsubscriberfromthelistofsubscribers.

5.2.3 Newsubscribersenlistedduringanyparticularfinancialyearshallbeentitledtoreceivealltheissuesofthatyearprovidedsuppliesareavailable.

6 BRANCHES

6.1 SubjecttotheapprovaloftheCouncil,branchesoftheSocietymaybeestablishedatanyplace.

6.2 A branchwill be deemed to have been dissolved if it fails to convene an Annual GeneralMeeting andsubmitanannual reportofactivities,provided that theCouncilmaycondone the failure toeitherof theaforementionedongoodcauseshown.

6.3 AbranchshallsubmitanannualreporttotheSecretaryoftheSocietybeforetheendofJulyofeveryyearreflectingtheactivitiesofthepreviouscalendaryear.

6.4 Theaffairsofabranchshallbemanagedbyacommittee,themembersofwhichshallbeelectedannuallyatageneralmeetingofthebranch.

6.5 TheannualgeneralmeetingofabranchshallbeheldatadatetobedeterminedbythebranchcommitteebutnotlaterthantheendofSeptemberofeachyear.

6.6 EverybranchshallreceivefromtheSecretaryoftheCouncilaregisterofitsmembersgivingtheirfullnamesand addresses, showing the date of the inception and of the termination of their membership of thebranch,andreflectingsuchotherdetailsasmaybefoundconvenient.

6.7 ThebranchrepresentativesontheCouncilshallbeelectedbymembersofthebranchconcernedingeneralmeetingor,ifsoauthorisedbythemembersingeneralmeeting,bythebranchcommittee.NotificationoftheoutcomeofsuchanelectionshallbeforwardedtotheSecretaryoftheCouncilnotlaterthantheendofSeptemberofeachyear.

7 COUNCIL

7.1 TheaffairsoftheSocietyshallbemanagedbyaCouncilconsistingof:

7.1.1 thePresident;

7.1.2 thePresident-elect;

7.1.3 theVice-President;

7.1.4 twomemberselectedbyeverybranch;


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7.1.5 sixmemberselectedbytheSocietyintermsoftheproceduressetoutin7.3;

7.1.6 theManagingEditoroftheJournalifnotalreadyamemberunder7.1.1,7.1.2,7.1.3,7.1.4or7.1.5;

7.1.7 theimmediatepastPresident;

7.1.8 theSecretaryandTreasurer,exofficio;and

7.1.9 amaximumoffiveadditionalmembersco-optedbytheCouncil.

7.2 The term of office of the Council shall expire after two years at the conclusion of the Biennial GeneralMeeting.ThisBiennialGeneralMeetingwillcoincidewiththebiennialconference.

7.3 Biennially, anominations committee appointed by the Council shall, after inviting nominations from themembersof the Society, present thememberswith a short list of candidates andaballot forPresident-elect, Vice-President and six Councilmembers prior to the Biennial GeneralMeeting of the Society thatcoincideswiththebiennialconference.

Each nomination shall include the nominee's acceptance of the nomination and a bio-sketch of thenominee. InthecaseofthePresident-electandtheVice-Presidentthenominationsshall includeproofofsupport oftenmembers ingoodstanding. InthecaseoftheothersixCouncilpositionsthenominationsshall include proof of support of three members in good standing. All nominations that meet therequirementsshallappearontheshortlist.

Theproofofsupportofcandidatescanbeinanywrittenformatlikeane-mailaddressedtotheSecretaryofESSA.

Completed ballotsmust reach the Secretary (electronically or bymail) no later than 7 days prior to theBiennialGeneralMeeting. Foreachposition the candidatewho secures themost votes iselected. In thecaseofatie,memberspresentattheBiennialGeneralMeetingwillcastadecisivevote.

At theBiennialGeneralMeetingthePresidentwillannouncetheoutcomesof thiselectionforPresident-elect,Vice-PresidentandsixCouncilmembers.

OneyearafterthisBiennialGeneralMeetingthePresident-electwillautomaticallybecomethePresidentoftheSocietyforatwo-yearterm.

TheseelectionswillbeheldinaccordancewiththeelectionsprotocoloftheSociety.

TheSecretaryandtheTreasurerwillbeappointedbyCouncil.

ThenominationscommitteeshallconsistofthePresidentandtheimmediatepastPresidentanduptofivefurthermemberswhoshallbeappointedbyCounciltoserveonthenominationscommittee.

ThePresidentwillbethechairpersonofthenominationscommittee.

The nominations committee should consider the following criteria in constructing the short list: (i) thescholarlyand/orprofessionalcontributionsofthecandidatesand(ii)thefulldiversityoftheSocietyandthefieldofinquiryitrepresents.

7.4 EachbranchrepresentativeontheCouncilshall,withtheapprovalofthecommitteeofsuchabranch,havethepowertonominateamemberoftheSocietytoactasproxyatmeetingsoftheCouncil.

7.5 TheCouncilmaydelegateanyofitsfunctionstooneormorecommittees,electedfromitsownmembersorotherwise.

7.6 ThequorumforthemeetingoftheCouncil,unlessotherwisedeterminedbytheCouncil,shallbeseven.

7.7 There shall be an Executive Committee, responsible for the daily management of the Society and theexecution of any matter referred to it by the Council. The Executive Committee shall consist of thePresident, the President-elect, theVice-President, the immediate past President, theManaging Editor ofthe Journal, theSecretary, theTreasurerandanyothermembersappointedby theCouncil fromtime totime.

8 THEJOURNAL

8.1 TheofficialpublicationoftheSocietyshallbecalled"TheSouthAfricanJournalofEconomics",hereinafterreferred toas the Journal,andshallbepublishedquarterlyor for suchotherperiodsas theCouncilmaydecide.


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8.2 The Journal shall be edited by a panel of editors appointed by the Council, one of whom shall be theManagingEditor.

8.3 TheManagingEditor,whoshallbeappointedforfouryears,renewableonceonly,willhavethefollowingduties:

8.3.1 ensuringtheregularpublicationoftheJournal;

8.3.2 ensuringthattheJournalareofanacceptablestandard;

8.3.3 managementofthestaffandfinancialmattersoftheJournal;

8.3.4 developingandimplementingtheeditorialpolicyoftheJournal;

8.3.5 marketing the Journal with a view to promoting the membership of the Society and increasing thesubscriptionstotheJournal.

8.4 Editors,otherthantheManagingEditor,shallserveforrenewableperiodsoftwoyears.

8.5 The services of the Managing Editor or an editor shall not be terminated without due cause and fairprocedures,inaccordancewiththelaw.

8.6 AhonorariumshallbepayabletotheManagingEditor,asdeterminedbytheCouncil.

9 GENERALMEETINGS

9.1 ABiennialGeneralMeetingshallbeheldtocoincidewiththebiennialconference.,atadateandplacetobedeterminedbytheCouncil.

9.2 SpecialGeneralMeetingsoftheSocietymaybeheldatsuchtimesandplacesastheCouncilmaydecide.

9.3 TheCouncilmaylaydownrulesforthevotingatGeneralMeetings,andmayfromtimetotimevarysuchrules.

9.4 Notlessthan21days'noticeshallbegivenofallBiennialorSpecialGeneralMeetingsoftheSocietyandthenoticesconveningsuchmeetingsshallindicatethenatureofthebusinesstobetransactedatthemeeting.

10 FINANCE

10.1 TheTreasurershall receiveallmoniesdueto theSocietyandshallmakesuchpaymentsonbehalfof theSocietyastheCouncilmayfromtimetotimedirect.TheTreasurershallinvestthemoniesoftheSocietyasthe Council may direct and he/she shall keep proper accounts of all receipts and payments and beresponsibleforthesafe-keepingofthesecuritiesoftheSociety.

10.2 ThefinancialyearoftheSocietyshallendon31December.

10.3 AllinvestmentsofthefundscontrolledbytheSocietyshallbemadeatthediscretionoftheCouncilandallsecuritiesshallberegisteredinthenameoftheSociety.

10.4.1 Anycontract,powerofattorneyorotherdeedordocumenttobesignedonbehalfoftheSociety,exceptwithdrawalsfromorchequesdrawnuponanysavingsorbankaccountsoftheSociety,shallbesignedby

10.4.1.1 the President or the President-elect or the Vice-President, and by the Treasurer or the Secretary or theManagingEditoroftheJournal,or

10.4.1.2 byanytwopersonsdesignatedbyresolutionoftheCouncil.

10.4.2 WithdrawalsfromorchequesdrawnuponanyoftheaccountskeptbytheSocietywithsavingsinstitutionsandbanksshallbesignedbytheTreasurerorinhis/herabsencebythepersonactingonhis/herbehalf,andshallbecountersignedbytheSecretaryorbyamemberoftheCouncil.

10.4.3 TheproceedsofchequesandotherremittancesinfavouroftheSocietyshallbedepositedtothecreditofthe Society, and need only be endorsed by the Treasurer or in his/her absence by the person acting onhis/herbehalf.

10.5 Membershipduesshallvest in theCouncil,but theCouncilmay makeavailableuponmotivatedrequestmoniestoabranchforprojects/activitiesofthebranch

10.6 AllduespayablebymembersshallbecollectedbytheTreasureroftheCouncil.


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10.7 All compositions for lifemembership of the Society shall vest in the Council in full and if received by abranchshallberemittedimmediately.

10.8 Council shall cause one or more banking accounts to be opened in the name of the Society with aninstitution registered and regulated in terms of the Banks Act of 1990, and any amount accruing to theSocietyshallbedepositedinsuchbankingaccountoraccountsastheCouncilmaydirect.

10.9 AllpaymentsfromthefundsoftheSocietyshallbeeffectedbychequeorelectronicfundtransfersignedbytheSecretary,TreasurerorpersonappointedbyCouncilandcountersignedbytheAuditorsorsuchpersonas Council may authorise thereto; provided that nothing herein contained shall prevent Council frommaintainingandoperatingapettycashfund,orpayingincashsuchordinaryandusualaccountsasdonotintotalexceedasumdeterminedbyCouncil,andprovidedfurtherthatthetotalsumforthepaymentofsuchaccountsisdrawnbycheque.

10.10 AllpropertyoftheSocietyshallbevestedinCouncil.

10.11 TheincomeandpropertyoftheSociety,fromwhateversourcederived,includingprofitsorgains,shallbeappliedsolelytothepromotionandfurtheranceoftheobjectivesoftheSociety,andnopartthereofshallbe paid or transferred, directly or indirectly by way of dividend or bonus or otherwise, to any person:Provided that nothing herein contained shall prevent the payment in good faith of remuneration to anyemployeeorotherperson/sforservicesrenderedtotheSociety.

11 FUNDS

11.1 TheCouncilmayinstituteafundorfundsasitdeemsdesirablefortheachievementoftheobjectivesoftheSocietyandsubjecttosuchrulesandconditionsasitmaydetermine.

11.2 TheinterestobtainedontheinvestmentofFundsshallbepaidtothegeneralrevenueoftheSociety,butthecapitalshallnotbeexpendedaslongastheSocietyis inexistence,exceptbyrecommendationoftheCouncilconfirmedbyresolutionofaGeneralMeetingoftheSociety.


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12 ANNUALREPORTSANDACCOUNTS

AttheBiennialGeneralMeetingtheCouncilshallpresenttheannualreportsoftheprevioustwoyears,withauditedstatementsofaccountsandbalancesheet,copiesofwhichshallhavebeenforwardedtoeachmembernotlessthansevendayspriortothedateofanysuchmeeting.

13 AUDITOR

OnceayeartheaccountsoftheSocietyshallbeexaminedbyanauditor,tobeappointedbymembersattheBiennialGeneralMeeting,whoshallholdofficeuntilthenextBiennialGeneralMeeting.Intheeventofacasualvacancyduringtheyear,theCouncilshallmakeanappointmenttofillit.

14 CENTRALOFFICE

TheCentralOfficeoftheSocietyshallbeatsuchaplaceastheCouncilmayfromtimetotimedetermine.

15 AMENDMENTOFCONSTITUTION

The Constitution of the Society may be amended at the Biennial General Meeting of the Society upon therecommendation of the Council and after consultationwith the various branch committees. Full particulars of anyproposedamendmentsshallbegiveninthenoticeconveningtheBiennialGeneralMeetingatwhichsuchproposedamendmentsaretobeconsidered.

16 DISSOLUTIONOFTHESOCIETY

If,uponwindingupordissolutionoftheSociety,thereremains,afterthesatisfactionofallitsdebtsandliabilities,anypropertywhatsoever,suchpropertyshallnotbepaidordistributedamongstthemembersoftheSociety,butshallbegivenortransferredtosuchotherinstitutionorinstitutionshavingobjectivessimilartothoseoftheSocietyasmaybedeterminedbythemajoritydecisionof theGeneralMeetingof theSocietyandwhich is itselfexempt from incometax.


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BRANCHACTIVITIES

2014Bloemfontein(FreeState)TheDepartmentofEconomicsoftheFreeStateUniversity,inassociationwiththeFreeStatebranchoftheEconomicSocietyofSouthAfrica,hostedthefollowingresearchseminarsandlectures:Date Presenter Title Affiliation11April2014 Dr.JohanCoetzee A conceptual model for relationship

bankingUFS

11April2014 ProfFrikkieBooysenMrSeviasGuvuriro

Risk and Time Preferences: IndividualsversusGroups

UFS

19May2014 EnricaChiapperoMartinetti TheChallengeofinequality:Conceptualizingandmeasuringinter-groupinequalities

PaviaUniversity

31October2014 ProfFrikkieBooysenMrSeviasGuvuriro

Social preferences for fairness, altruism,trustandreciprocity

UFS

14November2014 ProfFrikkieBooysenMrSeviasGuvuriro

Socialdiscounting UFS

CapeTownTheDepartmentofEconomicsoftheUniversityofCapeTown,inassociationwiththeCapeTownbranchoftheEconomicSocietyofSouthAfrica,hostedthefollowingresearchseminarsandlectures:Date Speaker Title Affiliation11February2014 AxelSchimmelpfennig SouthAfrica'sCurrentEconomic

OutlookIMF

21February2014 HugoPienaar Implicationsoftherecentinterestrate

BureauofEconomicResearch

20March2014 DavidKaplan WhatDoSouthAfrica'sMultipleDevelopment PlansMean?

UCTProfessor

28March2014 RudolfGouws WhatAretheLatestNationalAccountsTellingUs?

RandMerchantBand,BoardofDirectorsandformerChiefEconomist

25April2014 BenTurok WhyismacroeconomicpolicysocontroversialinSouthAfrica?

MPandmemberofANC

15May2014 DennisDavis AreSouthAfricanCompetitivePracticesAnti- Competitive?

HighCourtJudgeandPresidentof CompetitionAppealCourt;HonouraryProfessorUCT

30May2014 BenSmit SuddenStopsandCurrentAccountReversals: SomeSouthAfricanScenarios

HeadofBureauofEconomicResearch

25July2014 PaulMilgrom UseofGameTheorytoAuctionBroadband Spectrum

ProfatStanford

8August2014 BrianKahn WhatisHappeningwiththeSARB'sMonetary Policy?

SARB,MonetaryPolicyCommittee

15August2014 LeratoMataboge PropectsforAfricanIntegration? DTI,ChiefDirector,AfricaRelations

18September2014 MichelleWilliams TheEndoftheDevelopmentState Witsuniversity26September2014 RudolfGouws TheInequalityIssueinSouthAfrica RandMerchantBank10October2014 ShakillHassan Randvolatilityandvolatilityofother

emerging marketcurrenciesSARB


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24October2014 Dr.Jammine StructuralImpedimentstogrowthandjobcreation inSouthAfrica

Econometrix

EasternCapeOn 26 September 2014, Dr Vsevolod Gorlach of ABSA Capital, Equity Strategy Team presented a guest lecture atNMMUentitled"TheEndofModernPortfolioTheory–Scenario-BasedAssetAllocationandSimulation".On10-11October2014theRhodesUniversityHonoursResearchConferencewasheldinGrahamstown.Morethan50RhodesstudentspresentedthefindingsoftheirHonoursresearchprojects.ThankstosponsorshipfromESSAwewereagainabletoinclude5studentsfromNMMUand5studentsfromFortHare.The AGM of the East Cape Branchwas held at NMMU on 5 December 2014. Prof Gavin Fraser stepped down asChairmanandDrMichaelSalewaselectedthenewChairmanoftheBranch.ProfGavinKeetonwaselectedasthenewSecretary.ProfJenSnowballremainsasTreasurer.JohannesburgDate Speaker Title10April2014 RobertVivian Theimportanceofknowingthehistoricalrecordwhenformulating

legislativepolicy:thecaseofpropertycasualtyinsuranceregulation22Apri2014l GeoffreyM.Hodgson Lawandthestate23April2014 GeoffreyM.Hodgson Property,possessionandcontract24April2014 GeoffreyM.Hodgson Commodityexchangeandmarkets25April2014 GeoffreyM.Hodgson Capitalism,socialismandthestate19May2014 JoseGabrielPalma Whyisinequalitysounequalacrosstheworld?Andwhyisitsodifficultto

dosomethingaboutitinmiddleincomecountries?30July2014 CatrionaPurfield ExportCompetitivenessinSouthAfricaKwaZulu-NatalNoreportsubmitted.LimpopoNoreportsubmitted.NorthWestNorthWestTheDepartmentofEconomicsoftheNorthWestUniversity(Potchefstroomcampus),in associationwiththeNorthWestbranchoftheEconomicSocietyofSouthAfrica,hostedthe followingresearchseminarsandguestlectures:Date Speaker Affiliation Topic13February2014 LeonardHaasbroek PPS PPSpresentation6March2014 GangLi Surrey Tourismcompetitiveness13March2014 GeoffreyChapman SABS TradePolicy18March2014 WimpieBoshoff US Industrialorganisation08May2014 LulluKrugel KPMG SAeconomy03September2014 NicolasPons-Vignon Wits(CSID/SEBS) ThepoliticaleconomyoflabourinSAPretoriaNoreportsubmitted.


17

StellenboschTheDepartmentofEconomicsoftheStellenboschUniversity,inassociationwiththeStellenboschbranchoftheEconomicSocietyofSouthAfrica,hostedthefollowingresearchseminarsandlectures:Date Speaker Seminartitle20January2014 ProfLantPritchett(Harvard

University)TowardsaGUT(GrandUnifiedTheory)ofGrowth:UnderstandingGrowthTransitions

3February2014 NonsoObikili(EconomicResearchSouthernAfrica)

AnexaminationofsubnationalgrowthinNigeria:1999-2012

10February2014 DietervonFintel(StellenboschUniversity)

Spaceorrace?ThereachandrigidityoflocallabourmarketsinSouthAfrica

17February2014 DerekYu(UniversityoftheWesternCape)

Twoshortpaperswillbepresented:a)MultifacetedpovertyinSouthAfricaANDTradeunionsinanemergingeconomy–thecaseofSouthAfrica

24February2014 DaleMudenda(UniversityofCapeTown)

Intra-nationalpricedispersion:Theroleofgeography,internalbordersandtradability

3March2014 IanStuart(NationalTreasury,SouthAfrica)

AnanalysisoftheSouthAfricanBudget2014/15andresearchpossibilitiesinPublicFinance

10March2014 WimpieBoshoff(StellenboschUniversity)

RecoveryphasesintheSouthAfricanbusinesscycle

17March2014 RulofBurgerandFriedrichKreuser(StellenboschUniversity)

Howbindingarefamilybonds?Estimatingmodelsofintra-householdbargainingforSouthAfrica

24March2014 AndreasFreytag(Friedrich-Schiller-UniversityJena)

ThepotentialofACPcountriestoparticipateinGlobalandRegionalValueChains:AMappingofIssuesandChallenges

7April2014 AndrewDonaldson(NationalTreasuryandHonoraryProfessorintheEconomicsdepartment,StellenboschUniversity

ImplementingtheNationalDevelopmentPlan:IssuesinPublicFinance

14April2014 CharlJooste(NationalTreasury,SouthAfrica)

Themacroeconomiceffectsoffiscalshocksunderforesight

12May2014 HugoPienaar(BureauforEconomicResearch)

SouthAfricaneconomicprospects:subduedeconomicoutlookbutwithabetterbalance

19May2014 AlfonsoHerranz-Loncán(UniversityofBarcelona)

BigPushorBigGrab?Railways,GovernmentActivismandExportGrowthinLatinAmerica,1865-1913

28July2014 MarisaCoetzee(StellenboschUniversity)

Subjectivewell-beingandreferencegroupsinpost-apartheidSouthAfrica

4August2014 EdKirby(LondonSchoolofEconomics)

Incentives,LocationFundamentalsandEthnicity:EvidenceofhomelandagglomerationfromTaiwanesefirmsduringlateapartheid

11August2014 ProfEricSchaling(WitsBusinessSchool)

MonetaryPolicyandHeterogeneousInflationExpectationsinSouthAfrica

18August2014 DavidGarber(ERSA) PropertyRates-APotentialRoleintheGenerationofPublicRevenueandEconomicGrowth

25August2014 PierreSiklos(WilfridLaurierUniversity)

CentralBankCredibilityandReputation:AHistoricalandQuantitativeExploration

1September2014 ProfRielFranszen(ResearchChairinTaxPolicyandGovernanceandDirector:AfricanTaxInstitute:UniversityofPretoria)

RecurrentPropertyTaxesinAfrica:PolicyIssuesandAdministrativeChallenges

15September2014 ProfStefanVoigt(InstituteofLawandEconomics,UniversityofHamburg)

Constitutionalemergencyprocedures

16September2014 ProfPeterRosendorff(NewYorkUniversity)

Transparency,ProtestandPolitical(in)Stability


18

22September2014 ProfAndreaSaayman(North-WestUniversity)

Tourismdemandmodelling:CantheRotterdamModeloutperformtheAlmostIdealDemandSystem?

29September2014 JeanneCilliers(StellenboschUniversity)

IntergenerationalOccupationalMobility:Amicro-levelcasestudyof19thcenturySettlerSouthAfrica

6October2014 ProfStephanKlasen(Georg-August-UniversitätGöttingen)

Aid,TradeandGrowth

13October2014 ProfsEstianCalitz(StellenboschUniversity)andPhilippeBurger(UniversityoftheFreeState)

FiscalpolicyinarecentlydemocratisedSouthAfrica:Threephases,twodecades

20October2014 CraigLemboe(BureauforEconomicResearch)

TheglobalandSAeconomy:Trendsandoutlook(2014-2016)

3November2014 DrAshaSundaram(UniversityofCapeTown)

Estimatingtheimpactofexportdeterrents:AnanalysisofUShigh-technologyexportcontrols

10November2014 JanLuitenvanZanden(UtrechtUniversity)

HowWasLife?GlobalWell-Beingsince1820


19

THEECONOMICSOCIETYOFSOUTHAFRICA(NPC) (REGISTRATIONNUMBER2012/033217/08)ANNUALFINANCIALSTATEMENTSFORTHEYEARENDED31DECEMBER2014INDEX

Thereportsandstatementssetoutbelowcomprisetheannualfinancialstatementspresentedtothecouncil: INDEX PageDirector'sResponsibilitiesandApproval 20IndependentAuditors'Report 21Directors'Report 22StatementofFinancialPosition 24StatementofComprehensiveIncome 25StatementofChangesinEquity 26StatementofCashFlows 27AccountingPolicies 28NotestotheAnnualFinancialStatements 30Thefollowingsupplementaryinformationdoesnotformpartoftheannualfinancialstatementsandisunaudited:DetialedIncomeStatement 32

TheEconomicSocietyofSouthAfricaNPC(Registrationnumber2012/033217/08)Annual FinancialStatements for theyearended31December2014

Directors'ResponsibilitiesandApproval


20

The directors are required by the Companies Act 71of 2008, to maintainadequate accounting recordsandareresponsible forthe content and integrity of the annual financial statementsand related financialinformation included in this report. It is their responsibility to ensure that the annual financialstatements fairly present the stateof affairs of the company asat the endofthefinancial year andtheresults of itsoperations and cash flows for the period then ended, inconformity with the InternationalFinancial Reporting Standard for SmallandMedium-sized Entities. The external auditors are engaged toexpress anindependentopinionontheannualfinancial statements.The annual financial statements are prepared in accordance with the International Financial ReportingStandard for Small and Medium-sized Entities and are based upon appropriate accounting policiesconsistently applied andsupported by reasonableandprudentjudgements andestimates.The directors acknowledge that they are ultimately responsible for the system of internal financialcontrol established by the companyand place considerable importance on maintaining a strongcontrolenvironment. To enable the directors to meet these responsibilities, the board sets standards forinternal control aimed at reducing the risk of error or loss in a cost effective manner. The standardsincludethe properdelegation ofresponsibilitieswithin aclearly defined framework, effective accountingprocedures andadequate segregation ofduties to ensure an acceptable levelof risk. These controls aremonitored throughout the company and all employees are required to maintain the highest ethicalstandards in ensuring the company's business is conducted in a manner that in all reasonablecircumstances is above reproach. The focus of risk management in the company is on identifying,assessing, managing and monitoring all known forms of risk across the company. While operating riskcannot be fully eliminated, the company endeavours to minimise it by ensuring that appropriateinfrastructure, controls, systems and ethical behaviour are applied andmanagedwithin predeterminedprocedures andconstraints.Thedirectors areof theopinion, basedonthe informationand explanations given bymanagement, thatthe systemof internalcontrol provides reasonable assurance that the financialrecords may be relied onfor the preparation of the annual financial statements. However,anysystemofinternalfinancialcontrolcanprovideonlyreasonable,andnot absolute, assurance againstmaterialmisstatementorloss.Thedirectors have reviewed the company's cashflow forecast for theyearto31December2015and, inthe lightofthis reviewandthe current financial position, they are satisfied that the company hasor hasaccess toadequate resourcestocontinue inoperationalexistence fortheforeseeable future.Theexternal auditors are responsible for independentlyauditing and reportingonthe company's annualfinancial statements. The annual financial statements have been examined by the company's externalauditorsandtheir reportispresentedonpage21 . The annual financial statements set out on pages 22 to 32, which have been prepared on the goingconcernbasis,were approvedby the boardof directors and the executive council on 12June 2015 andweresignedontheir behalfby:


21

UIZEN Office Tel: (O l 1 ) 674- 3833 Postal Address: Suite 1 28 Private Bag X3 Strubens V alley 1375 www.huizen.co.za

IndependentAuditors'Report

_____________________________I ncorporated Registered Charted Accountants and Auctitors - Reg. 2013/04380l/21

TotheboardofdirectorsandtheexecutivecommitteeofTheEconomicSocietyofSouthAfricaNPCWehaveauditedtheannualfinancialstatementsofTheEconomicSocietyofSouthAfricaNPC,assetoutonpages24to31,whichcomprisethestatement of financial position as at 31 December 2014, and the statement of comprehensive income, statement of changes in equity andstatementofcashflowsfortheyearthenended,andthenotes,comprisingasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.Directors'ResponsibilityfortheAnnualFinancialStatementsThecompany'sdirectorsareresponsibleforthepreparationandfairpresentationoftheseannualfinancialstatements inaccordancewiththeInternationalFinancialReportingStandardforSmallandMedium-sizedEntities,andrequirementsoftheCompaniesAct71of2008,andforsuchinternal control as thedirectors determine is necessary to enable thepreparationof annual financial statements that are free frommaterialmisstatements,whetherduetofraudorerror.Auditors'ResponsibilityOurresponsibilityistoexpressanopinionontheseannualfinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithInternationalStandardsonAuditing.Thosestandardsrequirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassurancewhethertheannualfinancialstatementsarefreefrommaterialmisstatement.Anaudit involvesperformingprocedures toobtainauditevidenceabout theamountsanddisclosures in theannual financial statements.Theproceduresselecteddependontheauditors'judgement,includingtheassessmentoftherisksofmaterialmisstatementoftheannualfinancialstatements,whether due to fraud or error . Inmaking those risk assessments, the auditor considers internal control relevant to the entity'spreparation and fair presentation of the annual financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includesevaluating theappropriatenessofaccountingpoliciesusedand the reasonablenessofaccountingestimatesmadebymanagement,aswell asevaluatingtheoverallpresentationoftheannualfinancialstatements.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion.OpinionInouropinion, theannual financial statementspresent fairly, inallmaterial respects, the financialpositionofTheEconomicSocietyof SouthAfricaNPCasat31December2014,anditsfinancialperformanceanditscashflowsfortheyearthenendedinaccordancewiththeInternationalFinancialReportingStandardforSmallandMedium-sizedEntities,andtherequirementsoftheCompaniesAct71of2008.OthermatterWithout qualifyingour opinion,wedrawattention to the fact that supplementary information set out onpage32doesnot formpart of theannualfinancialstatementsandispresentedasadditionalinformation.Wehavenotauditedthisinformationandaccordinglydonotexpressanopinionthereon.OtherreportsrequiredbytheCompaniesActAspartofourauditoftheannualfinancialstatementsfortheyearended31December2014,wehavereadtheDirectors'Reportforthepurposeofidentifyingwhethertherearematerialinconsistenciesbetweenthesereportsandtheauditedannualfinancialstatements.Thisreportistheresponsibilityoftherespectivepreparer.Basedonreadingthisreportwehavenotidentifiedmaterialinconsistenciesbetweenthisreportandtheauditedannualfinancialstatements.However,wehavenotauditedthisreportandaccordinglydonotexpressanopiniononthisreport.

12 June 2015

14 Farrer Street Discovery

Roodepoort 1735


Directors'Report


22

ThedirectorshavepleasureinsubmittingtheirreportontheannualfinancialstatementsofTheEconomicSocietyofSouthAfricaNPCfortheyearended31December2014.1. IncorporationThecompanywasincorporatedon21February2012andobtained itscertificatetocommencebusinessonthesameday.2. NatureofbusinessThe Economic SocietyofSouthAfricaNPCwas incorporated inSouthAfricaand isadiscussionforumforeconomists inacademiclife,governmentandbusiness.ThecompanyoperatesinSouthAfrica.Therehavebeennomaterialchangestothenatureofthecompany'sbusinessfromtheprioryear.3. ReviewoffinancialresultsandactivitiesTheannualfinancialstatements havebeenpreparedinaccordancewith InternationalFinancialReportingStandardforSmall andMedium-sizedEntitiesandtherequirementsoftheCompaniesAct71of2008.Theaccountingpolicieshavebeenapplied consistentlycomparedtotheprioryear.Fulldetailsofthefinancialposition,resultsofoperationsandcashflowsofthecompanyaresetoutintheseannualfinancial statements.4. DirectorsThedirectorsinofficeatthedateofthisreportareasfollows:DirectorsProfJLuiz-President ProfPBurgerProfSADuPlessisTherehavebeennochangestothedirectoratefortheperiodunderreview.5. Directors'interestsincontractsDuringthefinancialyear,nocontractswereenteredintowhichdirectorsorofficersofthecompanyhadaninterestandwhich significantlyaffectedthebusinessofthecompany.6. EventsafterthereportingperiodThedirectorsarenotawareofanymaterialeventwhichoccurredafterthereportingdateanduptothedateofthisreport.7. GoingconcernThe directors believe that the company has adequate financial resources to continue in operation for theforeseeable futureandaccordinglytheannualfinancial statements havebeenpreparedonagoingconcernbasis.Thedirectors havesatisfied themselvesthatthecompany isinasoundfinancial positionandthat ithasaccesstosufficientborrowingfacilitiestomeetitsforeseeable cash requirements.Thedirectors arenotaware ofanynewmaterial changes that may adversely impactthe company.Thedirectorsarealsonotawareofanymaterialnon-compliancewithstatutoryorregulatoryrequirementsorofany pendingchangestolegislationwhichmayaffectthecompany.


Directors'Report


23


Directors'Report


24

8. AuditorsHuizenInc.wereappointedasthenewauditorsforthecompanyfor2014.AttheAGM,theshareholderswillberequestedtoreappointHuizenInc.astheindependentexternalauditorsofthecompanyandtoconfirmMrsCEsterhuizenCA(SA)asthedesignatedleadauditpartnerforthe2015financialyear.

9. ExecutiveCouncilProfJLuiz-PresidentDrJvandenHeever-Vice-PresidentMrsLAntonites-SecretaryMrsMPretorius-TreasurerMrLBurrows


StatementofFinancialPositionasat31December2014


25

FiguresinRand Note(s) 2014 2013Assets

Non-CurrentAssetsOtherfinancialassets

2

1903637

1857799

CurrentAssetsTradeandotherreceivables

3

42600

Cashandcashequivalents 4 1398780 1397996 1441380 1397996TotalAssets 3345017 3255795EquityandLiabilities

EquityRetainedincome

3072785

3034441

Liabilities

CurrentLiabilitiesTradeandotherpayables

5

272232

221354

TotalEquityandLiabilities 3345017 3255795


StatementofComprehensiveIncome


26

FiguresinRand Note(s) 2014 2013Income 6 608618 780012Operatingexpenses (641321) (605450)Operating (deficit)surplus (32703) 174562Investmentrevenue 7 25209 107090Fairvalueadjustments 8 45838 117Surplusfortheyear 38344 281769Othercomprehensiveincome Totalcomprehensive incomefortheyear 38344 281769


StatementofChangesinEquity


27

FiguresinRand Retained

incomeTotalequity

Balanceat01January2013 2752672 2752672SurplusfortheyearOther comprehensiveincome

281769 281769

Totalcomprehensive incomefortheyear 281769 281769Balanceat01January2014 3034441 3034441DeficitfortheyearOther comprehensive income

38344 38344

Totalcomprehensivedeficitfortheyear 38344 38344Balanceat31December2014 3072785 3072785


StatementofCashFlows


28

FiguresinRand Note(s) 2014 2013Cashflowsfromoperatingactivities Cash (usedin)generatedfromoperations 10 (24425) 209235Interest income 25209 107090Netcashfromoperatingactivities 784 316325Cashflowsfrominvestingactivities Movementinfinancialassets 245268Netcashfrominvestingactivities 245268Cashflows fromfinancingactivities Movement inother financial liabilities (330842)Netcashfromfinancingactivities (330842) Totalcashmovementfortheyear 784 230751Cashatthe beginning oftheyear 1397996 1167247Totalcashatendoftheyear 4 1398780 1397996


AccountingPolicies


29

1. PresentationofAnnualFinancialStatementsThe annual financial statements have been prepared in accordance with the International Financial ReportingStandard for Small andMedium-sizedEntities, and theCompaniesAct71of2008.Theannual financial statementshavebeenpreparedonthehistoricalcostbasis,andincorporatetheprincipalaccountingpoliciessetoutbelow.TheyarepresentedinSouthAfricanRands.Theseaccountingpoliciesareconsistentwiththepreviousperiod.1.1 SignificantjudgementsandsourcesofestimationuncertaintyIn preparing the annual financial statements, management is required to make judgements, estimates andassumptions that affect the amounts represented in the annual financial statements and related disclosures. Theestimatesandassociatedassumptionsarebasedonhistoricalexperienceandotherfactorsthatareconsideredtoberelevant.Actualresultsinthefuturecoulddifferfromtheseestimateswhichmaybematerialtotheannualfinancialstatements.CriticaljudgementsinapplyingaccountingpoliciesManagementdidnotmakecritical judgements in theapplicationofaccountingpolicies, apart from those involvingestimations,whichwouldsignificantlyaffectthefinancialstatements.KeysourcesofestimationuncertaintyThefollowingarethekeyassumptionsconcerningthefuture,andotherkeysourcesofestimationuncertaintyattheendofthereportingperiod,thathaveasignificantriskofcausingamaterialadjustmenttothecarryingamountsofassetsandliabilitieswithinthenextfinancialyear.ImpairmenttestingThecompanyreviewsandteststhecarryingvalueofassetswheneventsorchangesincircumstancessuggestthatthecarrying amount may not be recoverable . When such indicators exist, management determine the recoverableamountbyperformingvalue inuseand fair valuecalculations.Thesecalculations require theuseofestimatesandassumptions .When it is not possible to determine the recoverable amount for an individual asset,managementassessestherecoverableamountforthecashgeneratingunittowhichtheassetbelongs.TaxationJudgement isrequired indeterminingtheprovisionfor incometaxesduetothecomplexityof legislation.Therearemanytransactionsandcalculationsforwhichtheultimatetaxdeterminationisuncertainduringtheordinarycourseofbusiness.Thecompanyrecognisesliabilitiesforanticipatedtaxauditissuesbasedonestimatesofwhetheradditionaltaxeswill be due.Where the final tax outcome of thesematters is different from the amounts thatwere initiallyrecorded, such differences will impact the income tax and deferred tax provisions in the period in which suchdeterminationismade.The company recognises the net future tax benefit related to deferred income tax assets to the extent that it isprobablethatthedeductibletemporarydifferenceswillreverseintheforeseeablefuture.Assessingtherecoverabilityofdeferred incometaxassetsrequiresthecompanytomakesignificantestimatesrelatedtoexpectationsof futuretaxable income. Estimates of future taxable income are based on forecast cash flows from operations and theapplicationofexisting tax laws ineach jurisdiction .To theextent that futurecash flowsand taxable incomediffersignificantlyfromestimates,theabilityofthecompanytorealisethenetdeferredtaxassetsrecordedattheendofthereportingperiodcouldbeimpacted.


AccountingPolicies


30

1.2 FinancialinstrumentsFinancialinstrumentsatfairvalue

Allotherfinancialinstrumentsaremeasuredatfairvaluethroughprofitandloss.1.3 TaxCurrenttaxassetsandliabilitiesCurrenttaxforcurrentandpriorperiodsis,totheextentunpaid,recognisedasaliability.Iftheamountalreadypaidinrespectofcurrentandpriorperiodsexceedstheamountdueforthoseperiods,theexcessisrecognisedasanasset.

Taxexpenses

Tax expense is recognised in the same component of total comprehensive income (i.e. continuing operations,discontinuedoperations,orothercomprehensiveincome)orequityasthetransactionorothereventthatresultedinthetaxexpense.1.4 ImpairmentofassetsThecompanyassessesateachreportingdatewhetherthereisanyindicationthatanassetmaybeimpaired.Ifthereisanyindicationthatanassetmaybeimpaired,therecoverableamountisestimatedfortheindividualasset.Ifitisnotpossibletoestimatetherecoverableamountoftheindividualasset,therecoverableamountofthecash-generatingunittowhichtheassetbelongsisdetermined. ·If an impairment loss subsequently reverses, the carrying amount of the asset (or group of related assets) isincreasedtotherevisedestimateofitsrecoverableamount,butnotinexcessoftheamountthatwouldhavebeendeterminedhadnoimpairmentlossbeenrecognisedfortheasset(orgroupofassets) inprioryears.Areversalofimpairmentisrecognisedimmediatelyinprofitorloss.1.5 SharecapitalandequityAnequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsofanentityafterdeductingallofitsliabilities.1.6 EmployeebenefitsShort-termemployeebenefitsThecostof short-termemployeebenefits, (thosepayablewithin12monthsafter the service is rendered, suchaspaidvacationleaveandsickleave,bonuses,andnon-monetarybenefitssuchasmedicalcare),arerecognisedintheperiodinwhichtheserviceisrenderedandarenotdiscounted.


NotestoAnnualFinancialStatements


31

FiguresinRand 2014 20132. OtherfinancialassetsAtfairvalue Listedshares:MTNGroupLimited 664 651Theabovesharesarecarriedatfairvaluethroughprofitandloss. InvestecInvestments 1902973 1857148Theseinvestmentsarecarriedatfairvaluethroughprofitandloss. 1903637 1857799Non-currentassets Atfairvalue 1903637 18577993. TradeandotherreceivablesTradereceivables:membershipfeesoutstanding 42600 4. CashandcashequivilantsCashandcashequivalentsconsistof:Bankbalances

926517

950942Moneymarketaccount 472263 447054 1398780 13979965. Tradeandotherpayables

Membershipfeesreceivedinadvance 111203 157980Accruedpublishingexpenses 151177 41487Accruedauditfees 9852 21887 272232 2213546. Income

Membershipfeesreceived 442520 404898Prizeentryfeesreceived 7800 2300Conferenceincome - 164359Donationsreceived - 1250Publishingincome 137678 105681Dalroincome 10620 96737Membershipletterincome 10000 -Otherincome - 4787 608618 7800127. Investmentrevenue

InterestrevenueMoneymarketaccount

25209

107090

8. FairvalueadjustmentOtherfinancialassets 45838 117


NotestoAnnualFinancialStatements


32

FiguresinRand 2014 20139. Auditors'remuneration

Fees 10946 12150 10. Cash(usedin)generatedfromoperations (Deficit)surplusbeforetaxationAdjustmentsfor:

38344 281769

Interestreceived-Moneymarketaccount (25209) (107090}FairvalueadjustmentsChangesinworkingcapital:

(45838) (117}

Tradeandotherreceivables (42600} Tradeandotherpayables 50878 34673 (24425) 209235

11. Relatedparties

Relationships

MembersofkeymanagementBoardofdirectors:ProfJLuiz-PresidentProfPBurgerProfSADuPlessis

Executivecouncil:ProfJLuiz-PresidentDrJvandenHeever-Vice-PresidentMrsMPretorius-TreasurerMrsLAntonites-SecretaryMrLBurrows

12. Directors'remuneration

Noemolumentswerepaidtothedirectorsoranyindividualsholdingaprescribedofficeduringtheyear.


DetailedIncomeStatement


33

FiguresinRand Note(s) 2014 2013Income

Membershipfeesreceived 442520 404898Prizeentryfeesreceived 7800 2300Conferenceincome 164359Donationsreceived 1250Publishingincome 137678 105681Dalroincome 10620 96737Membershipletterincome 10000 Otherincome 4787Interestreceived 7 25209 107090Fairvalueadjustments 8 45838 117 679665 887219Operatingexpenses

Accountingfees (969) (6123)AdministrationandmanagementfeesAuditorsremuneration

9

(10946)

(360689)(12 150)

Bankcharges (8215) (9487)Branchactivities-CapeTown (20000) (20000)Branchactivities-EasternCape (14220) Courierservices (517) (191)Employeecosts (331278) Entertainmentandrefreshments (4699) (9750)Honorarium:secretary {12000) Honorarium:treasurer (12000) Postboxrenewal (359) Printingandstationery {1860) (8714)Prize adjudicationexpenses (7775) (7350)Prizes awarded (435) (1128)Profitandlossonexchangedifferences (16349)Publicationcosts (194179) (139720)Secretarialfees (5339)Telephoneandfax (5279) (4941)Travel-local (11290) (3519)Websitemaintenancecost (5300) (641321) (605450)Surplus for theyear 38344 281769

Documents

ESSA Annual Report 2014 (2) - ESSA: Economic … Report 2014 Tukkiewerf 2/21 Lynnwood road University of Pretoria Pretoria 0002 South Africa Tel: +27 12 420 3525 E-mail: [email protected]