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TEAM: The South African Institute

for Drug-Free Sport

PROJECT: Annual Report 2007-2008

2008TEAM: The South African Institute

for Drug-Free Sport

PROJECT: Annual Report 2007-2008

2008

South African Institute for Drug-Free Sport

Physical Address: Unit D2, Brookside Office Park, Claremont, Cape Town, South Africa, 7708

Postal Address: PO Box 2553, Clareinch, 7740, South Africa

Tel: + 27 21 683 7129 Fax: +27 21 683 7274 E-mail: [email protected]

Drug-Free Info Hotline: + 27 21 448 3888 Website: www.drugfreesport.org.za

RP99/2008

ISBN: 978-0-621-37855-9

This Annual Report is Printed onReviva White Recycled Paper and Board

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TEAM: SAIDS PROJECT: Annual Report 2007-2008

Table of Contents

01

About the SA Institute for Drug-Free Sport2

Chairman's Report3

CEO’s Report

5Board of Directors and SAIDS Organogram

7Doping Control Staff

9Doping Control Objectives and Achievements 10Doping Control Statistics

12Anti-Doping Rule Violations14Education - Objectives and Achievements16International Relations - Objectives and Achievements 17Anti-Doping Research - Objectives and Achievements 18Statement of Responsibility

19Corporate Governance21Auditor - General Report 24Audit Committee Report27Accounting Authority Report30Financial Statements33

Table of Contents

Annual Report

SAIDS2007-2008

The South African Institutefor Drug-Free Sport


About The South African Institutefor Drug-Free Sport

02


Chairman’s Report

03

About The South African Institute forDrug-Free Sport

The South African Institute for Drug-Free Sport (SAIDS) is a public entity established by an Act of

Parliament, Act No. 14 of 1997,

"To promote participation in sport free from the use of prohibited substances or methods intended

to artificially enhance performance, thereby rendering impermissible doping practices which are contrary

to the principles of fair play and medical ethics, in the interest of the health and well-being of

sportspersons; and to provide for matters connected therewith".

The Drug-Free Sport Act grants the Institute statutory drug testing powers and the authority to conduct

and enforce a national anti-doping programme. By virtue of the Institute’s legislative ambit, national

sports federations are obligated to co-operate with the Institute.

Since 1998 SAIDS has:

• Provided leadership in the development of a national anti-doping strategy in sport.

• Developed and implemented a comprehensive drug testing programme that includes all South

Africa’s major sporting codes and conforms to the highest international standards of the industry.

• Provided education and information on drugs in sport to all its target markets.

• Consulted to other African countries on building capacity towards developing an anti-doping

infrastructure on the continent.

• Collaborated with other national anti-doping agencies throughout the

world to achieve international harmonisation and improvement of standards

and practices in anti-doping.

The South African Institute for Drug-Free Sport is an organisation not

for gain. As such no dividends are declared to any members or outside

parties and all funds received are utilised for the furtherance of the

Institute’s objectives as outlined in Section 10 of the South African

Institute for Drug-Free Sport Act No. 14 of 1997.

The Institute for Drug-Free Sport receives the majority of its funding

from Sport and Recreation South Africa.

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Chairman’s ReportThe major international doping cases in the past two years have

been exposed through the sharing of intelligence based information

between law enforcement agencies and anti-doping entities. The

BALCO scandal in the U.S., of which Marion Jones was one of

the high profile culprits and the cases in cycling, notably Operation

Puerto, was the result of such co-operation between agencies.

This strategy allows the anti-doping authorities to target the entire

supply chain of banned substances in sport from the end-user

to the supplier and the manufacturer. In order for the strategy

to have a worldwide effect, international co-operation is essential.

Recently, Operation Raw Deal exemplified the value of such

international co-operation after an investigation that spanned

nine countries; U.S. authorities raided fifty six laboratories and

arrested 124 people for their involvement in the manufacturing

and trafficking of illegal drugs including banned substances in

sport. The ease through which these drugs are obtained via

the internet makes for unique challenges to anti-doping agencies

such as the SA Institute for Drug-Free Sport (SAIDS). In the ensuing

years our challenges in South Africa are to facilitate and develop the building blocks of better co-operation between

ourselves and the law enforcement bodies. Also, we need to create the legal framework to prosecute those who circumvent

medicine control regulations in order to manufacture and traffic illegal drugs to the sports community in the country.

An improved legal framework to support anti-doping activities will help to make our drug testing program more effective. A

framework that protects the rights of both whistleblowers and an intelligence network, will augment the intelligence-based target

testing in sport. The challenge for SAIDS is to increase target testing, which the new anti-doping code emphasises and secondly,

to increase out-of-competition unannounced tests. This more intelligence-based testing strategy will enable us to target the real

cheats and utilise our limited resources more effectively.

An additional challenge for SAIDS in the next year is to ensure effective implementation of the World Anti-Doping Code (WADC)

by January 2009. The strength of the WADC adopted five years ago was its ability to create harmonisation and uniformity across

sporting codes and international jurisdictions so that every anti-doping rule violation (ADRV) is prosecuted on the same set of rules

and penalties. The amended Code, adopted at the World Anti-Doping Agency’s (WADA) Conference in Madrid in November 2007,

is based on the experience of the last five years and creates more flexibility with respect to offences except in the case of ‘hard

drugs’ such as steroids, hormones and specific stimulants. Sanctions can also be decreased if an athlete provides substantial

assistance in further exposing an anti-doping rule violation (ADRV) or by the athlete’s own admission in the absence of other

evidence of doping – such as a confession prior to the test results being available. On the other hand aggravating factors such

as the use of multiple drugs or being part of a “conspiracy or common enterprise to commit on ADRV” could result in an increased

sanction of up to four years. This would allow the sanction to fit the crime.

As chairman, I believe we are facing up to our challenges as the leading anti-doping agency in Africa and we will continue to strive

to be the custodians of fair play and drug-free sport in the country. We will also seize on the many opportunities that cross our

path to further our strategic objectives. The major opportunity for SAIDS over the next two years is to provide the technical support

and expertise to the 2010 FIFA World Cup Local Organising Committee, as they prepare to build a doping control infrastructure

that will support the needs of the 2010 FIFA World Cup. Blood testing which will be mandatory for both the Confederation’s Cup

in 2009 and the FIFA 2010 World Cup requires our urgent attention in terms of building a FIFA compliant doping control infrastructure.

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CEO’s Report

05

04


Chairman’s Report

CEO’s ReportThis past year has been an extremely difficult year wherein the agency

faced many organisational challenges – staffing changes, the

appointment of a new board of directors as well as the changing of

our financial administrators. These three crucial elements played an

influential role in determining the course of the year.

The context of the organisational challenges was:

• Human Resources - the absence of a Chief Executive Officer

for a fourteen month period as well as the dismissal of a staff

member increased the workload of the remaining staff resulting

in dual responsibilities on operational and management issues.

• Financial – the qualified audit report in the previous financial

year necessitated a change in our financial administrators and

the implementation of better financial controls. The SAIDS Board

appointed A. Saban Consulting as the agency’s accountants so

that our accounting practices are more in compliance with both General Acceptable Accounting

Practices (GAAP) and the Public Finance Management Act (PFMA). I am proud of the fact that with the assistance

of the Saban Consulting company, the Institute received an unqualified audit report for the 2007/2008 financial year.

• Board – the term of the previous Board expired early in 2007. The Minister of Sport appointed a new Board in

November 2007 to develop and guide policy decisions over the next five years. As would be expected, a new

Board caused some transitional challenges for the Institute. Fortunately, the re-appointment of Dr Shuaib Manjra

(chairman), Mr Raymond Hack and Mr Chris Hattingh assured the agency of some administrative continuity.

The appointment of well-known anti-doping expert, Dr Ismail Jakoet and sports medicine specialists Dr Victor

Ramathesele and Dr Harold Adams, further contributed toward the agency regaining its organisational stability

and prestige. The Minister ushered in a new guard in the anti-doping field through the appointments of Dr Mamisa

Chabula, Dr Bevan Goqwana, Ms. Nomveliso Ntanjana and Prof. John Ojewole. The professional diversity of the

Board bodes well for the Institute in continuing to lead anti-doping efforts in Africa.

In spite of the difficulties and challenges of the past year, the agency continues to provide services of a high international

standard. We can point to the following noteworthy strategic outcomes as testimony to the quality of our services:

• Increased ratio of out-of-competition to in-competition doping controls.

• Managed anti-doping capacity building projects in Kenya, Egypt, Lesotho, Namibia and Sudan with the capacity

building of their doping control.

• Establishment of our Doping Control Review Committee under the chairmanship of Professor Hawksworth. The

committee reviews all anti-doping violations. The process of the committee is a best practice that is the envy of

many anti-doping organisations both in terms of the expertise represented on this committee as well as the

protocols followed.

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Furthermore, the appointment of our new CEO, Mr Khalid Galant is a welcome relief to the Board. Being the first General Manager

of SAIDS at its inception over 10 years ago, he arrives with the history and experience of that period and beyond. We welcome

him back. We thank Mr Fahmy Galant who held the fort for over a year for his sterling contribution to SAIDS. Our gratitude also

goes to the Minister of Sport and his Department for their continued support and commitment to our anti-doping initiatives.

Dr. Shuaib Manjra

Chairman of the Board


Board of Directors & Organogram

07


CEO’s Report

06

The transitionary period within the Institute was finally completed with the appointment of the new Chief Executive

Officer, Khalid Galant. The management expertise and anti-doping experience that Khalid brings with him ensures

greater stability, more experience and a dynamism that was sorely lacking within the organisation.

With the implementation of the new World Anti-Doping Code (WADC) due in January 2009, the challenges for anti-

doping organisations have increased. Greater strides and developments within education continue to be a major focus

area outlined in the WADC resulting in more efforts to generate funding and resources for the agency. Capacity building

for blood sampling, for the biological passport programme as instituted by the International Cycling Union (UCI) as

well as the preparation for the 2009 FIFA CONFED Cup, has already begun. While the challenges continue to mount,

I am confident that with the appointment of the new board under the helm of Dr. Shuaib Manjra and the new Chief

Executive Officer, we have begun to assemble the human resources capable to ensure the continued elevation of

the agency – the work within the first four months of the new financial year bears testimony to that.

In conclusion I would like to acknowledge and thank:

• The chairperson, Dr. Shuaib Manjra for his administrative and managerial support

• The Institute for Drug-Free Sport’s Staffing Committee for their support in providing their time and expertise

during an extremely difficult year

• Pamela Isaacs for her operational support during trying and difficult times

• A. Saban Consulting for their excellent assistance and support in developing and instituting the required systems

and processes in accordance with the PFMA regulations

• SAIDS doping control officers and chaperones who despite the numerous challenges that they face, continue

to perform their work with vigour, efficiency and professionalism

Fahmy Galant

Acting CEO

Board of Directors and Organogram

DR. SHUAIB MANJRA, MBChB BSc (Med.) (Hons) Sports Medicine DOH

Chairman

• Chairperson: Cricket SA Medical Committee

• Chairperson: Medical and Scientific Commission of the SA Confederation and Olympic Committee

• Member: SA Rugby Scientific and Research Committee

• Executive Committee Member: Association of National Anti-Doping Organisations

• Sports Physician

Dr. BEVAN GOQWANA, MBChB FCP

• Specialist Physician

MR. CHRIS HATTINGH, BscPharm.

• Member: North-West Provincial Legislature

• Member: North-West Legislature: Portfolio Committee Sports, Arts and Culture

• Chairperson: Athletics South Africa Doping Commission

MR. RAYMOND HACK, Attorney-At-Law

• Chief Executive Officer and Member of the National Executive Committee of the South African Football Association (SAFA)

• Chairman: SAFA Anti-Doping Commission and SAFA Legal Committee Member

• Member of World Anti-Doping Agency (WADA) Switzerland (Special Projects)

• Member of the WADA Working Group on Legal Matters

• Member of CAS (International Court of Arbitration for Sport) Switzerland – Arbitrator dealing with special matters in South Africa,

specifically in regard to Football

• Member of the FIFA 2010 World Cup South Africa Local Organising Committee

DR. ISMAIL JAKOET, MBChB MSc Sports Medicine, Diploma Labour Law

• Sports Physician

• Member: SA Rugby President's Council

• Member: The Institute of Directors of South Africa

MS. NOMVELISO NTANJANA, B. Proc (Law), Post–Graduate Diploma in Labour Law, Post–Graduate Diploma in Cyber Law,

Certificate in International Law, Certificate in Competitive Intelligence

• Legal Advisor, Part Time judicial panelist / adjudicator.

• Admitted as an Attorney of the High Court of South Africa

• Currently completing the NEPAD African Leadership Programme at Wits Business School.

DR. VICTOR RAMATHESELE, MBChB MSc Sports Medicine

• General Medical Officer: FIFA 2010 World Cup Local Organizing Committee

• Member: SA Football Association Medical Commission

• Radio and Television personality on health and wellness issues

DR. HAROLD ADAMS, MBChB

• Chief Medical Officer: Athletics South Africa

• Anti-Doping Officer: International Amateur Athletics Federation

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Doping Control Staff

09


Board of Directors & Organogram

08

DR. MAMISA CHABULA-NXIWENI, B.Sc, MBChB, Dip Obstetrics

• Executive Director: Environmental Health Services; Nelson Mandela Bay Municipality

• Board Member: Iilso Trust

• Board Member: Emmanuel Haven

PROF. JOHN OJEWOLE, B.Pharm.(Hons), M.Sc (Clin. Pharm)., PhD (Pharmacology)

• Head Of Department - Department of Pharmacology, Faculty of Health Sciences, University of KwaZulu-Natal

• Member: National Department of Health's Medicines Control Council's (MCC's) Sub-committee on 'Complementary and

Alternative Medicines (CAM)

Board of the SA Institutefor Drug-Free Sport

Chief Executive Officer

Doping Control Manager

Office Co-ordinator

Part Time: TUE DataCapturer

Education / ProjectsCo-ordinator

Doping ControlCo-ordinator

Part Time: DopingControl Logistics

Part Time: DopingControl Data Capturer

Minister of Sport

Part Time: AccreditedDoping Control Staff

GEOGRAPHICAL DISTRIBUTION OF DOPING

CONTROL OFFICERS IN SOUTH AFRICA

GEOGRAPHICAL DISTRIBUTION OF TRAINEE

DOPING CONTROL OFFICERS

DOPING CONTROL OFFICERS:

RACIAL DIVERSITY

TRAINEE DOPING CONTROL OFFICERS:

RACIAL DIVERSITY

DOPING CONTROL OFFICERS: GENDER TRAINEE DOPING CONTROL

OFFICERS: GENDER

15%

7%

6%

21%

4%

36%

7%4%

East LondonGauteng

Western CapeKwazulu-Natal North West

Port Elizabeth MpumalangaNorthern Cape

9%

12%

6%

20%

9%

32%

6%

6%

White Black

Male Female

18%

82%

66%

34%

71%

29%

66%

34%

Doping Control Staff

Free State

East London

Gauteng

Western Cape

Kwazulu-Natal

Port Elizabeth

Mpumalanga

Northern Cape Free StateNorth West

North West

Gauteng

Mpumalanga

Kwazulu-Natal

East London

Port Elizabeth

Western Cape

Tyler Hamilton (US cyclist) Steadfastly main-tained that his positive results for blood-

boosting was due to the presence of a twin in his mother’s womb which subsequently

disappeared Tyler Hamilton (US cyclist) Steadfastly maintained that his positive results

for blood-boosting was due to the presence of a twin in his mother’s womb which

subsequently disappeared Tyler Hamilton (US cyclist) Steadfastly maintained that his

positive results for blood-boosting was due to the presence of a twin in his mother’s

womb which subsequently disappeared Tyler Hamilton (US cyclist) Steadfastly maintained

that his positive results for blood-boosting was due to the presence of a twin in his

mother’s womb which subsequently disappeared Tyler Hamilton (US cyclist) Steadfastly

maintained that his positive results for blood-boosting was due to the presence of a

twin in his mother’s womb which subsequently disappeared Tyler Hamilton (US cyclist)

Steadfastly maintained that his positive results for blood-boosting was

due to the presence of a twin in his mother’s womb which

subsequently disappeared Tyler Hamilton (US cyclist) Steadfastly

maintained that his positive results for blood-boosting was due

to the presence of a twin in his mother’s womb which

subsequently disappeared Tyler Hamilton (US cyclist)

Steadfastly main-tained that his positive results for blood-

boosting was due to the presence of a twin in his mother’s

womb which subsequently disappeared Tyler Hamilton

(US cyclist) Steadfastly maintained that his positive

results for blood-boosting was due to the presence

of a twin in his mother’s womb which subsequently

disappeared Tyler Hamilton (US cyclist)

Steadfastly maintained that his positive

results for blood-boosting was due to

the presence of a twin in his mother’s

womb which subsequently disappeared

Tyler Hamilton (US cyclist) Steadfastly

maintained that his positive results for blood-

boosting was due to the presence of a twin in

his mother’s womb which subsequently

disappeared Tyler Hamilton (US cyclist) Steadfastly

maintained that his positive results for blood-boosting

was due to the presence of a twin in his mother’s womb

which subsequently disappeared Tyler Hamilton (US cyclist)

Steadfastly maintained that his positive results for blood-

boosting was due to the presence of a twin in his mother’s womb which

subsequently disappeared Tyler Hamilton (US cyclist) Steadfastly maintained that his

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Doping Control Objectives &Achievements

11


Doping Control Objectives &Achievements

10

Doping Control Objectives and Achievements

Strategic ObjectiveTo conduct an effective and efficient drug testing programme that is independent, reliable, secure and suitable

for the purpose of detecting and deterring the use of prohibited substances and methods.

The SA Institute for Drug-Free Sport (SAIDS) conducted 2541 tests during the 2007/2008 financial year.

Objective

To detect and deter the use

of performance enhancing

substances in sport

Eliminate procedural mistakes

and defects in the drug-testing

programme

Test results are reliable when

challenged

To conduct a drug testing

programme on South African

athletes from all sports codes

to detect and prevent drugs

in sport.

EPO tests are targeted at

athletes in certain sport

codes

Trained and accredited Doping

Control Officers (DCO)

Adequate, trained chaperones

throughout South Africa

Regional Coordinators who

conduct chaperone training

International Organisation for

Standardisation (ISO) Quality

System audited bi-annually

Procedures are amended to

comply with World Anti-

Doping Code (WADC)

requirements

Key Performance Indicator

Increase the ratio of

unannounced out-of-

competition tests

Regular and effective training

and updates regarding new

developments

Regular field audits

Adequate funds and

personnel.

Access to accurate athlete

whereabouts information

Annual training and refresher

courses, regular updates and

communication on new

developments in the anti-

doping world

Suitable, qualified field

personnel nationally

Increase in reporting of non-

conformities and decrease in

customer complaints

Continual improvement

Quality System aligned with

WADC and International

Standard for Testing

Target

50:50 (In-competition vs Out-

of-Competition)

60% Unannounced (Out-of-

Competition)

0-2%

97%

2500 tests

60 DCOs

70 Chaperones

10 Regional Coordinators

Two ISO office audits and one

field audit

Re-certification of Quality

System

WADC compliant

Actual

64:36 (In-competition vs Out-

of-Competition)

99% Unannounced

(Out-of-Competition)

0-1%

100%

2541 tests across 52 sport

codes

86 EPO tests were conducted

in Athletics and Cycling

53 DCOs

53 Chaperones

5 Regional Coordinators

Two ISO office audits and one

field audit

Ongoing

Three hundred and thirty three additional tests were

conducted by SAIDS on behalf of the World

Anti-Doping Agency (WADA), the Association

of National Anti-Doping Organizations (ANADO)

and various International Sport Federations. The

International Cricket Council contracted the Institute

to conduct the doping control at the 20-20 Cricket

World Cup in South Africa. A total of 61 doping controls

were conducted during the two week tournament.

SAIDS assisted the World Anti-Doping Agency with the Doping

Control Officer training for the African Zone V and Zone VI Regional

Anti-Doping Agencies. Over the past year, SAIDS doping control officers

mentored and trained doping control staff in Egypt, Ethiopia, Kenya,

Lesotho, Sudan and Namibia.

Performance against Objectives


Doping Control Statistics

13



12

Sport Code In- Out-of- Total Anti-DopingCompetition Competition Tests Rule Violations

Rugby 247 184 431 1

Athletics 283 89 372 0

Soccer 140 112 252 1

Cycling 111 50 161 0

Swimming 94 14 108 0

Hockey 70 27 97 1

Cricket 16 74 90 0

Powerlifting 48 34 82 4

Boxing (Professional) 82 0 82 1

Wrestling 36 45 81 1

Rowing 24 40 64 0

Paralympic Sport 39 23 62 1

Triathlon 52 2 54 0

Baseball 24 24 48 0

Judo 8 39 47 0

Mountain Bike 46 0 46 0

Canoeing 14 26 40 0

Tug-of-War 8 31 39 1

Volleyball 24 12 36 1

Netball 16 17 33 0

Motor Sport 28 4 32 1

Gymnastics 10 16 26 0

Shooting 20 0 20 1

Table Tennis 12 5 17 0

Badminton 8 9 17 0

Ice Hockey 16 0 16 0

Weightlifting 8 6 14 0

Boxing (Amateur) 8 5 13 0

Basketball 0 12 12 0


Sport Code In- Out-of- Total Anti-DopingCompetition Competition Tests Rule Violations

Surfing 11 0 11 2

Modern Pentathlon 11 0 11 0

Karate 0 11 11 0

Lifesaving 10 0 10 1

Korfball 4 6 10 1

Fencing 10 0 10 0

Volleyball (Beach) 8 0 8 1

Tennis 8 0 8 0

Squash 8 0 8 0

Snooker 8 0 8 2

Sailing 6 0 6 0

Rollerskating 6 0 6 0

Figure Skating 6 0 6 0

Aerobics 0 6 6 0

Equestrian 5 0 5 1

Wushu 4 0 4 0

Water Polo 4 0 4 0

Synchronised Swimming 4 0 4 0

Pool 4 0 4 0

Diving 4 0 4 0

Trampoline 0 2 2 0

Golf 2 0 2 0

Archery 0 1 1 0

SAIDS Tests 1615 926 2541 22

WADA tests 0 94 94 0

User Pay Tests 91 148 239 0

Total Overall Tests 1706 1168 2874 22

Percentage 59.36 40.64 100.00 0.77


Anti-Doping Rule Violations

15



14

No. Date of Test Surname Name G Sport Test Substance Identified/ Class of Substance Sanctions Imposed Anti-Doping StatusType Failure to Comply Rule Violation

1 14-Apr-07 van Tonder Edrick M Rugby Union IC 11-nor-delta9-tetrahydro- Cannabinoids 3 Month Suspension Yes Closedcannabinol-9-carboxylic acid

2 28-Apr-07 Chapman Justin M Lifesaving IC Benzoylecgonine Stimulant 2 Year Suspension Yes Closed

3 11-May-07 Smith William M Snooker IC Furosemide Diuretic Warning Yes Closed

4 9-Jun-07 van Wieringen Gary M Surfing IC 11-nor-delta9-tetrahydro- Cannabinoids Warning Yes Closedcannabinol-9-carboxylic acid

5 9-Jun-07 Roberts Brandon M Surfing IC 11-nor-delta9-tetrahydro- Cannabinoids Warning Yes Closedcannabinol-9-carboxylic acid

6 23-Jun-07 Kuisis Eugene James M Shooting IC Propranolol Beta-Blockers 3 Month Sanction Yes Open 4-hydroxypropranolol 7 5-Jul-07 Gertenbach Jasyn M Equestrian OC Failure to Comply Not Applicable 4 Month Sanction Yes Open

8 7-Jul-07 Matlhare Macpherson M Korfball IC 11-nor-delta9-tetrahydro- Cannabinoids 8 Month Suspension Yes Closedcannabinol-9-carboxylic acid

9 28-Jul-07 Joubert Alta F Tug-of-War OC Furosemide Diuretic 1 Year Sanction Yes Closed

10 3-Aug-07 Elekskandarani Mohamed M Powerlifting IC Epimetendiol Anabolic Agent 2 Year Suspension Yes Closed

11 3-Aug-07 Gardner Graham M Powerlifting IC Hydrochlorothiazide Diuretic 2 Year Suspension Yes Closed

12 7-Sep-07 Naran Hitesh M Snooker IC Bisoprolol Beta-Blockers Warning Yes OpenHydrochlorothiazide Diuretic

13 15-Sep-07 Swartz Quinton M Wrestling IC 11-nor-delta9-tetrahydro- Cannabinoids 6 Month Suspension Yes Closedcannabinol-9-carboxylic acid

14 23-Sep-07 Frost Sean M Motor Sport IC Methylphenidate Stimulant Warning Yes Open

Ritalinic Acid

15 25-Sep-07 Fredericks Faiz M Hockey IC 11-nor-delta9-tetrahydro- Cannabinoids 6 Month Suspension Yes Closedcannabinol-9-carboxylic acid

16 28-Sep-07 Tiyeka Phumzile M Boxing (P) IC Furosemide Diuretic 3 Month Suspension Yes Open

17 30-Sep-07 Mdingi Odinga M Wheelchair IC 11-nor-delta9-tetrahydro- Cannabinoids 14 Month Sanction Yes ClosedBasketball cannabinol-9-carboxylic acid

18 20-Oct-07 Wagner Peter M Volleyball IC 11-nor-delta9-tetrahydro- Cannabinoids 6 Month Sanction Yes Closedcannabinol-9-carboxylic acid

19 10-Nov-07 Benade Pieter M Powerlifting OC 19-norandrosterone Anabolic Agent 2 Year Suspension Yes Closed

19-noreticholanoloneEpimetendiol, Clenbuterol

20 23-Nov-07 Mahlatsi Petros M Soccer IC Betamethasone Glucocorticosteroid Warning Yes Closed

21 1-Dec-07 Krynauw Germaine M Beach Volleyball IC 11-nor-delta9-tetrahydro- Cannabinoids 6 Month Suspension Yes Closedcannabinol-9-carboxylic acid

22 17-Mar-08 Swanepoel Pieter M Powerlifting OC Hydrochlorothiazide Diuretic 2 Year Suspension Yes Closed



International Relations -Objectives and Achievements

17


Education - Objectives andAchievements

16

Education - Objectives and Achievements

Strategic ObjectiveTo implement a comprehensive national education and awareness programme that is relevant for specific target

groups, accessible, valid and measurable, for the purpose of preventing and deterring the use of prohibited

substances and methods.

Performance Against Objectives

Objective

Provide target markets with

accessible and relevant

information

Resources are available

Identify target groups and

provide workshops, lectures

and seminars

Identify and collaborate with

relevant organisations and

individuals

Update educational material

and develop relevant

presentations for the

appropriate target markets


Improved resources

Accessible information

Increase visibility of SAIDS

Improved resources and

greater awareness of SAIDS

Source suitable organisations

and education professionals

for collaborative partnerships

Availability of relevant material

Target

Athletes, sports federations,

school educators and learners,

medical, pharmaceutical,

sports science professionals

60

School educator’s community

counsellors

All target markets

Actual

Distributed 10 000 athlete’s

handbooks

Updated website

Improved use of drug-free sport

hotline

Outreach programme

conducted at the 2007 South

African Games

40 face-to-face interactions

through lectures and seminars

with target groups

The Institute actively

participated with the Western

Cape Substance Abuse Forum

of the Department of Social

Services

Anti-doping presentations

developed for young athletes

and sports persons

Presentations are conducted

on request by SAIDS or the

relevant organisation.

• Ten thousand copies of the “2007 Athletes’ Handbook ” were distributed to athletes, coaches, administrators, medical and

pharmaceutical professionals. The handbook contains a comprehensive list of both prohibited and permitted drugs in sport.

The drugs that are listed include the pharmacological description and the brand name under which the substance is available

to the South African market. The handbook is also available for download from the drug-free sport web site.

• SAIDS’ website www.drugfreesport.org.za had over 370 000 hits during the 2007-2008 financial year.

• Regional anti-doping staff conducted fourty lectures, workshops and seminars, across wide sports demographic. The

topics covered during these sessions ranged from the technical procedures of sampling collection to understanding the role

of therapeutic use-exemptions (TUEs) in doping to topical subjects in doping such as the Tour de France and Balco case.

• SAIDS serves on the Prevention and Education Portfolio Committee of the Western Cape Substance Abuse Forum. The forum

monitors and evaluates prevention and education projects and acts in an advisory capacity to the provincial and national drug

authority. Sports drugs are increasingly recognised and included as a necessary component of drug education and information

projects at the school and community level.

• As part of a strategy to increase SAIDS’s general visibility in sport and to reach a wider, more general audience, the agency

rolled out an outreach programme at the 2007 South African Games in Bloemfontein. SAIDS set up an outreach stand at the

various accommodation venues, where the athletes were encouraged to participate in the anti-doping quiz programme and

win prizes.

International Relations - Objectives and Achievements

Strategic ObjectiveTo participate in relevant international anti-doping alliances and collaborate and co-operate with SAIDS’

counterparts throughout the world, with a focus on Africa, for the purpose of contributing to the harmonisation

and improvement of standards and practices in all anti-doping issues.

The Institute participated in the following international activities:

16 April to 17 April WADA Symposium on the Investigatory Powers of Anti-Doping Organisations in London,

United Kingdom

Mr. Raymond Hack – Board Member

04 May to 05 May Association of National Anti-Doping Organizations (ANADO) Workshop in Pultusk, Poland

Dr. Shuaib Manjra – Board Chairperson

21 May UK Drug-Free Sport Best Practice Visit in London, United Kingdom

Mr. Chris Hattingh – Board Member

Mr. Fahmy Galant – Project Officer

22 May Anti-Doping Norway Best Practice Visit in Oslo, Norway



24 May to 25 May WADA Doping Control Seminar in Tromso, Norway



05 June to 07 June Romania/South Africa Anti-Doping Exchange Visit in Bucharest, Romania


16 September to 17 September ANADO General Assembly Meeting and Workshop in Tokyo, Japan


Staff and doping control officers of the SA Institute for Drug-Free Sport together with the WADA Africa office, conducted doping

control training in the African Zone V and Zone VI countries. The following doping control officers from SAIDS conducted training

in:

• Egypt by Albertus le Roux

• Kenya by Sandla Mbana and Sharief Gamiet

• Ethiopia by Chris Hattingh

• Lesotho by Leaquid and Eileen Khan

• Sudan by Pieter Cloete

• Namibia by Leaquid Khan, Vusi Cekiso, Adiel Edross

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Statement of Responsibility

19


Anti-Doping Research -Objectives and Achievements

18


The Public Finance Management Act, 1999 (Act No. 1 of 1999),

as amended, requires the directors to ensure that the South African

Institute for Drug-Free Sport keeps full and proper records of its

financial affairs. The annual financial statements should fairly present

the state of the South African Institute for Drug-Free Sport, its

financial results, its performance against predetermined objectives

and its financial position at the end of the year in terms of Generally

Accepted Accounting Practice (GAAP) including any interpretations

of such Statements issued by the Accounting Practices Board,

with the prescribed Standards of Generally Recognised Accounting

Practices (GRAP) issued by the Accounting Standards Board

replacing the equivalent GAAP Statement.

The annual financial statements are the responsibility of the

Accounting Authority. The external auditors are responsible for

independently auditing and reporting on the financial statements.

The annual financial statements have been prepared in accordance with the South African Statements of Generally

Accepted Accounting Practice. These annual financial statements are based on the consistent use of appropriate

accounting policies, supported by reasonable and prudent judgements and estimates.

The directors have reviewed the Institute’s budgets and cash flow forecasts for the year ended 31 March 2008.

On the basis of this review, and in view of the current financial position, the Directors have every reason to believe,

and the auditors concur, that the Institute will be a going concern in the year ahead, and have continued to adopt

the going concern basis in preparing the financial statements.

To enable the Directors to meet the above responsibilities, the Board of Directors sets standards and implements

systems of internal control and risk management that are designed to provide reasonable, but not absolute assurance

against material misstatements and losses. The Institute maintains internal financial controls to provide assurance

regarding:

• The safeguarding of assets against unauthorised use or disposition

• The maintenance of proper accounting records

• The reliability of financial information used within the business or for publication

• The compliance with the applicable legislation

The controls contain self-monitoring mechanisms, and actions are taken to correct deficiencies as they are identified.

Even an effective system of internal control, no matter how well designed, has inherent limitations including the

possibility of circumvention or the overriding of controls. An effective system of internal control therefore aims to

provide reasonable assurance with respect to the reliability of financial information and in particular financial statement

presentation. Furthermore, because of changes in conditions, the effectiveness of internal financial controls may

vary over time.

Anti-Doping Research - Objectives and Achievements

Strategic ObjectiveTo source and initiate research in sociological issues in respect of the knowledge, attitudes and use of performance

enhancing drugs among South African sportspeople, for the purpose of planning and implementing effective

drug-testing and education programmes.

Anti-doping research is an area that needs more attention in the forthcoming year. Scientific and social based research are integral

components of developing an effective and comprehensive education campaign. Drug-free sport messages that are supported

by quality scientific research will have more credibility with our target audiences.

Objective

Research into sociological

issues in respect of the

knowledge, attitudes and

use of performance

enhancing drugs and

nutritional ergogenic aids

among South Africa

sportspersons is initiated,

supported and maintained

as part of a prioritised

national sports research

programme


Sufficient resources and

suitable research applications

Target

One research topic to be

initiated

Actual

A research project under the

guidance of the Wits University

Centre for Exercise Science

and Sports Medicine was

initiated – The reasearch

proposal that was funded

looked at the following:

“Determining the use of

performance enhancing

substances by high school

students”


Corporate Governance

21



20

The Directors have reviewed the entity’s systems of internal control and risk management for the period

1 April 2007 to 31 March 2008. The Directors are of the opinion that the Institute’s systems of internal control and

risk management were effective for the period under review.

In the opinion of the directors, based on the information available to date, the annual financial statements fairly

present the financial position of the South African Institute for Drug-Free Sport at 31 March 2008 and the results

of its operations and cash flow information for the year, and that the Code of Corporate Practices and Conduct has

been adhered to.

The annual financial statements for the year ended 31 March 2008 were submitted for auditing on 31 May 2008

and approved by the Accounting Authority in terms of section 51(1)(f) of the Public Finance Management Act, 1999

(Act No. 1 of 1999), as amended, and signed on its behalf by:

DR. Shuaib Manjra Fahmy Galant

Chairperson Acting CEO


Introduction

Corporate governance is concerned with the organisational arrangements that have been put in place to

provide an appropriate set of checks and balances within which the stewards of the group operate. The

objective is to ensure that those to whom the stakeholders entrusted the direction and success of the

group act in the best interests of these stakeholders.

The South African Institute for Drug-Free Sport ensures that its processes and practices are reviewed on

an ongoing basis in order to ensure adherence to good corporate governance practices which are continually

benchmarked against international practices.

The Board of Directors believe that the group has substantially applied and complied with the principles

incorporated in the Code of Corporate Practices and Conduct as set out in the King Report on Corporate

Governance for South Africa 2002 as well as the Protocol on Corporate Governance in the Public Sector

2002.

Stakeholders

In addition to the interest of government as the shareholder, the South African Institute for Drug-Free Sport

acknowledges the interests of other stakeholders, including employees, creditors, customers, suppliers

and local communities.

The South African Institute for Drug-Free Sport regularly communicated with all stakeholders on material

matters of significant interest and concern to stakeholders. The information furnished to stakeholders

conforms to the criteria of promptness, openness, substance over form, relevance, clarity, effectiveness,

transparency and objectivity. The South African Institute for Drug-Free Sport places great emphasis on

reporting on both financial and non-financial matters, as well as addressing both positive and negative

aspects.

Governing Bodies

1. Board of Directors

The unitary board of directors comprises a majority of non-executive directors and meets at least quarterly.

The Chairperson and Members are appointed by the Minister in terms of the Act and their term of office

is five years. The Board is the Accounting Authority of the South African Institute for Drug-Free Sport in

terms of the PFMA and is responsible for the adoption of strategic plans, monitoring of operational

performance and management, determination of policy and processes to ensure the integrity of the group's

risk management and internal controls, and communication policy.

The remuneration of the Directors/Members is approved by the Executive Authority.



23



22

Number of board meetings held during the period under review - 4

Board Members and Meeting Attendance Record:

Dr. S Manjra (Chairperson) 4

Dr. H Adams 1

Dr. EM Chabula-Nxiweni 1

Dr. D Constantinou 2

Prof. Y Coopoo 2

Dr. MB Goqwana 2

Mr. R Hack 4

Mr. C Hattingh 4

Prof. W Hawksworth 2

Dr. I Jakoet 1

Ms. C Maphai 1

Ms. S Meltzer 2

Dr. S Motaung 1

Ms. N Ntanjana 1

Prof. JAO Ojewole 2

Dr. JVR Ramathesele 2

Mr. F Galant 4

(Acting CEO from 01/04/2007 to 31/01/2008)

2. Audit Committee

The Audit Committee is responsible for improving management reporting by overseeing audit functions,

internal controls and the financial reporting process.

The Audit Committee members up to the 9 July 2007 were Mr. Thulani Duncan Ntuli (Chairperson), Ms. Shirley

Mahanyele and Ms. Paledi Marota. These Audit Committee members resigned on the 9th July 2007. A new

Audit Committee was appointed on the 12th December 2007 and met once in the financial year 2007/2008.

The new Audit Committee members were Zethu Qunta (Chairperson), Humphrey Molemoeng, Nkateko

Mabaso, Lesibana Fosu and Shaila Hari, who declined the appointment.

Risk Assessment

A risk assessment exercise to identify significant business risks to the entity including operational risks which

could undermine the achievement of its objectives, was not conducted. This function was previously outsourced

to Deloitte whose contracted ended at the end of July 2007. Sport and Recreation South Africa assumed

this function as of August 2007, but only appointed an internal audit department in February 2008, which

was too late to conduct a risk assessment for the year under review. The internal audit department is in the

process of drafting a three year strategic plan and coverage plan for the 2008-2009 financial year and will

conduct a risk assessment during 2008-2009.

Despite the fact that no risk assessment exercise was conducted, the executive management, as mandated

by the board, has established a system of internal controls to manage risks. However certain gaps have been

identified which are to be rectified.

A system of internal control designed so that the management processes suit the specific operational

circumstances will be instituted. There is clear accountability for risk management that is a key performance

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area of management throughout the Institute. The requisite

risk and control capability will be assured through board

challenge and appropriate management selection and skills

development. Managers will be supported in giving effect

to their risk responsibilities through sound policies and

guidelines on risk and control management. Continuous

monitoring of risk and control processes across the

significant risk areas will provide the basis for regular and

exception reporting to the board.

There will be a report to the board at every board meeting

that appraises delivery against the risk strategy including

risk mitigation initiatives and their effectiveness. Regular

management reports will provide a balanced assessment

of key risks, as an important component of Board

assurance. Additional sources will include assertions

by the Financial Officer. The Board also receives

assurance from the Audit Committee, which partly derives its

information from regular internal and external audit reports on risk and internal control.

The group seeks to have a sound system of internal control based on the South African Institute for Drug-

Free Sport’s policies and guidelines. In conducting its annual review of the effectiveness of risk management,

the board considers the key findings from the ongoing monitoring and reporting management assertions and

independent assurance reports.

The Board is not entirely satisfied that there is an ongoing process for identifying, evaluating and managing

the significant risks faced by the entity.

The Board is of the opinion that appropriate risk management policies and practices need to be put in place

and that adequate systems and expertise will be applied to achieve compliance with those policies and

procedures.

Internal Aduit

The internal audit function was previously outsourced to Deloitte whose contracted ended at the end of July

2007. Sport and Recreation South Africa assumed this function as of August 2007, but only appointed an

internal audit department in February 2008, which was too late to conduct an internal audit for the year under

review. The internal audit department is in the process of drafting a three year strategic plan and coverage

plan for the 2008-2009 financial year and will conduct an internal audit during 2008-2009.

Code Of Ethics

A Code of Ethics has been developed and implemented, requiring all employees to maintain the highest

standards of behaviour. The Code provides clear guidance on the expected behaviour of all employees.

The directors are of the opinion that the Code of Ethics has been complied with.


Auditor-General Report

25



24

Report of the Auditor-General to Parliamenton the Financial Statements and Performance Informationof the South African Institute for Drug-Free Sport for theyear ended 31 March 2008

Report on the Financial Statements

Introduction

1. I have audited the accompanying financial statements of the South African Institute for Drug-Free Sport which comprise the

statement of financial position as at 31 March 2008, statement of financial performance, statement of changes in net assets

and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory

notes, as set out on pages 33 to 48.

Responsibility of the accounting authority for the financial statements

2. The accounting authority is responsible for the preparation and fair presentation of these financial statements in accordance

with the basis of accounting determined by the National Treasury, as set out in note 1 to the financial statements and in the

manner required by the Public Finance Management Act, 1999 (Act No. 1 of 1999) (PFMA) and the South African Institute for

Drug-Free Sport Act, 1997 (Act No. 14 of 1997). This responsibility includes:

• designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial

statements that are free from material misstatement, whether due to fraud or error

• selecting and applying appropriate accounting policies

• making accounting estimates that are reasonable in the circumstances.

Responsibility of the Auditor-General

3. As required by section 188 of the Constitution of the Republic of South Africa, 1996 read with section 4 of the Public Audit

Act, 2004 (Act No. 25 of 2004) (PAA) and section 8(3) of the South African Institute for Drug-Free Sport Act, 1997 (Act No.

14 of 1997), my responsibility is to express an opinion on these financial statements based on my audit.

4. I conducted my audit in accordance with the International Standards on Auditing and General Notice 616 of 2008, issued in

Government Gazette No. 31057 of 15 May 2008. Those standards require that I comply with ethical requirements and plan

and perform the audit to obtain reasonable assurance on whether the financial statements are free from material misstatement.

5. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.

The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement

of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal

control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s

internal control.

6. An audit also includes evaluating the:

• appropriateness of accounting policies used

• reasonableness of accounting estimates made by management

• overall presentation of the financial statements.

7. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Basis of accounting

8. The public entity’s policy is to prepare financial statements on the basis of accounting determined by the National Treasury,

as set out in note 1 to the financial statements.

Opinion

In my opinion the financial statements present fairly, in all material respects, the financial position of the South African Institute for

Drug-Free Sport as at 31 March 2008 and its financial performance and cash flows for the year then ended, in accordance with the

basis of accounting determined by the National Treasury, as set out in note 1 to the financial statements and in the manner required

by the PFMA.

Other Matters

Without qualifying my audit opinion, I draw attention to the following matters that relate to my responsibilities in the audit of the

financial statements:

Non-compliance with applicable legislation

9. Treasury Regulations

• No approved risk management strategy, fraud prevention plan and materiality and significance framework in place as required

by Treasury Regulation 27.2.1 and 28.3.

• No supply chain management unit in place as required by Treasury Regulation 16A 4.1.

• No written delegations are in place as required by Treasury Regulation 8.2.2.

Matters of governance

10.The PFMA tasks the accounting authority with a number of responsibilities concerning financial and risk management and internal

control. Fundamental to achieving this is the implementation of certain key governance responsibilities, which I have assessed

as follows:

Matter of governance Yes No

AUDIT COMMITTEE

• The public entity had an audit committee in operation throughout the financial year.

• The audit committee operates in accordance with approved written terms of reference.

• The audit committee substantially fulfilled its responsibilities for the year, as set out insection 77 of the PFMA and Treasury Regulation 27.1.8.

INTERNAL AUDIT

• The public entity had an internal audit function in operation throughout the financial year.

• The internal audit function operates in terms of an approved internal audit plan.

• The internal audit function substantially fulfilled its responsibilities for the year, as set out in Treasury Regulation 27.2.

OTHER MATTERS OF GOVERNANCE

The annual financial statements were submitted for audit as per the legislated deadlines(section 55 of the PFMA for public entities).

The financial statements submitted for audit were not subject to any material amendmentsresulting from the audit.

No significant difficulties were experienced during the audit concerning delays or theunavailability of expected information and/or the unavailability of senior management.

The prior year's external audit recommendations have been substantially implemented.


Audit Committee Report

27



26

Other Reporting Responsibilities

Report on Performance Information

11.I have reviewed the performance information as set out on pages 10 to 18.

Responsibility of the accounting authority for the performance information

12.The accounting authority has additional responsibilities as required by section 55(2)(a) of the PFMA to ensure that the annual

report and audited financial statements fairly present the performance against predetermined objectives of the public entity.

Responsibility of the Auditor-General

13.I conducted my engagement in accordance with section 13 of the PAA read with General Notice 616 of 2008, issued in

Government Gazette No. 31057 of 15 May 2008.

14.In terms of the foregoing my engagement included performing procedures of an audit nature to obtain sufficient appropriate

evidence about the performance information and related systems, processes and procedures. The procedures selected depend

on the auditor’s judgement.

15.I believe that the evidence I have obtained is sufficient and appropriate to provide a basis for the audit findings reported below.

Audit findings (performance information)

Content of strategic plan

16.I draw attention to the fact that the strategic plan of the South African Institute for Drug-Free Sport did not include expected

outcomes as identified by the executive authority as well as key performance measures/indicators for assessing the public

entity’s performance in delivering the desired outcomes and objectives.

Lack of access to records

17.I was unable to obtain sufficient appropriate audit evidence in relation to the performance information of the South African

Institute for Drug-Free Sport as I was unable to obtain access to the records pertaining to the number of athlete's handbooks

distributed.

Appreciation

18.The assistance rendered by the staff of the South African Institute for Drug-Free Sport during the audit is sincerely appreciated.

Cape Town

31 July 2008

Sport and Recreation South Africa

Report of the Audit Committee

We are pleased to present our report for the financial year ended 31 March 2008.

Audit Committee members and attendance:

The Audit Committee consisted of the members listed hereunder and meets four times per annum as per its approved terms of

reference. Two meetings took place during the 2007/2008 financial year.

Name of member Number of meetings attended

TD Ntuli (chairperson) 1

Paledi Marota 1

Shirley Mahanyele 0

The Audit Committee members resigned on the 9th July 2007.

A new Audit Committee was appointed on the 12th December 2007

and met once in the financial year 2007/2008.

The Committee never discussed the financial affairs of the entity.

Zethu Qunta (chairperson) 1

Humphrey Molemoeng 1

Nkateko Mabaso 1

Lesibana Fosu 0

Shaila Hari 0

Shaira Hari declined the appointment.

Audit Committee Responsibility

The Audit Committee reports that it has complied with its responsibilities arising from section 38(1)(a) of the PFMA and Treasury

Regulations 3.1.13. The Audit Committee also reports that it has adopted appropriate, formal terms of reference such as its audit

committee charter, has regulated its affairs in the compliance with this charter and had discharged all its responsibilities as contained

therein.

The effectiveness of internal control

The system of controls is designed to provide cost effective assurance that assets are safeguarded and that liabilities and working

capital are efficiently managed. In line with the PFMA and the King II report on Corporate Governance requirements, Internal Audit

provides the Audit Committee and management with assurance that the internal controls are appropriate and effective. This is

achieved by means of the risk management process, as well as the identification of corrective actions and suggested enhancements

to controls and process.

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Audit Committee Report

28

The system of internal control is not effective as the various reports of the Internal Auditors, and management letter of the Auditor-

General, it was noted that there are significant and material non-compliance with prescribed policies and procedures. Accordingly,

we can report that the systems of internal controls for the period under review were not efficient and effective.

The quality of in year management and monthly / quarterly reports submitted in terms of the Act and the Division of Revenue Act.

The Department Internal Audit function was outsourced until end of July 2007. The Chief Audit Executive was transferred to another

department and an Acting Chief Audit Executive was appointed from the 1st August 2007. The Internal Audit did not perform

regularity audits because the auditors were only appointed on the 1st March 2008 but had facilitated a risk management process.

Evaluation of financial statements

The Audit Committee has

• Not reviewed and discussed with the Auditor-General and the Accounting Officer the audited and annual financial statements

to be included in the annual report;

• Reviewed the Auditor-General’s management letter and management response;

• Not reviewed changes in accounting policies and practices.

The Audit Committee concurs and accepts the conclusions of the Auditor-General on the annual financial statements and is of

the opinion that the audited annual financial statements be accepted and read together with the report of the Auditor-General.

______________________________

Chairperson of the Audit Committee

Date: __________________________

THE SOUTH AFRICANINSTITUTEFOR DRUG-FREE SPORT(Act No. 14 of 1997)

Annual Financial Statements 31 March 2008

BOARD MEMBERS

DR. SI MANJRA (Chairperson )

MR. R HACK

MR. C HATTINGH

DR. H ADAMS

DR. EM CHABULA-NXIWENI

DR. MB GOQWANA

DR. I JAKOET

MS. N NTANJANA

PROF. JAO OJEWOLE

DR. JRV RAMATHESELE

APPROVAL OF FINANCIAL STATEMENTS

The annual financial statements, set out on pages 33 to 48, have been

approved by the Chairperson and are signed by him.

................................................

DR. SI MANJRA

31 JULY 2008


Accounting Authority Report

31


30

THE SOUTH AFRICAN INSTITUTE FOR DRUG-FREE SPORT

Accounting Authority Reportfor the year ended 31 March 20081. Introduction

The directors present their annual report that forms part of the audited annual financial statements of the entity for the year ended

31 March 2008.

The entity was established by an Act of Parliament (Act No.14 of 1997) and is listed as a national public entity in schedule 3A of

the Public Finance Management Act, 1999, as amended (PFMA).

The board of directors acts as the accounting authority in terms of the PFMA.

2. Directors Of The Entity

Non-Executive Directors:

Dr. SI Manjra – Chairperson (re-appointed 1 November 2007)

Mr. R Hack (re-appointed 1 November 2007)

Mr. C Hattingh (re-appointed 1 November 2007)

Dr. H Adams (appointed 1 November 2007)

Dr. EM Chabula-Nxiweni (appointed 1 November 2007)

Dr. MB Goqwana (appointed 1 November 2007)

Dr. I Jakoet (appointed 1 November 2007)

Ms. N Ntanjana (appointed 1 November 2007)

Prof. JAO Ojewole (appointed 1 November 2007)

Dr. JRV Ramathesele (appointed 1 November 2007)

Prof. Y Coopoo (end of term 31 October 2007)

Prof. W Hawksworth (end of term 31 October 2007)

Dr. D Constantinou (end of term 31 October 2007)

Ms. C Maphai (end of term 31 October 2007)

Ms. S Meltzer (end of term 31 October 2007)

Dr. S Motaung (end of term 31 October 2007)

Mr. MF Galant was the acting Chief Executive Officer and Board Secretary for the year under review. His business and postal

address are as follows:

Business Address: Postal Address:

Brookside Office Park P O Box 2553

Twickenham Building Clareinch

11 Lansdowne Road 7740

Claremont

7700

3. Principal Activities

The principal activities of the entity during the year comprise the development and implementation of anti-doping policy and

procedures. This includes implementing a drug-testing programme across all the South African sporting codes, providing education

and information programmes for all its target markets and collaborating internationally on the development and harmonisation

of anti-doping standards and procedures.

4. Events Subsequent to Statement of Position Date

The directors are not aware of any matters or circumstances arising since the end of the financial year, not otherwise dealt with

in the annual financial statements, which significantly affect the financial position of the entity or the results of its operations.

5. Addresses

The entity's business, postal and registered addresses are as follows:

Business Address: Postal Address: Registered Address:

Brookside Office Park P O Box 2553 Brookside Office Park

Twickenham Building Clareinch Twickenham Building

11 Lansdowne Road 7740 11 Lansdowne Road

Claremont Claremont

7700 7700

6. Jurisdiction And Domicile

The entity resides and is effectively managed in the Republic of South Africa.

7. Controlling Entity

The entity falls under the control of Sport and Recreation South Africa (SRSA).

The directors wish to disclose the fact that a Doping Control Officer engaged by the Institute acts as Chief Director: Client Services,

Liaison, Events & Facilities for Sport and Recreation South Africa. Her duties include approval of the funding for the Institute from

Sport and Recreation South Africa. The approval process, however, is subject to stringent review and approval by other officials.

The Doping Control Officer is remunerated for time according to the Institute’s established policies.

Approval

The annual financial statements, set out on pages 33 to 48, have been approved by the Chairperson and are signed by him.

...............................................................

DR. SI MANJRA

CHAIRPERSON

31 JULY 2008



Financial Statements

33


32

Compilation Report to theManagement of the South AfricanInstitute for Drug-Free SportOn the basis of information provided by management we have compiled, in

accordance with the statements of standards applicable to compilation

engagements as issued by the South African Institute of Chartered Accountants,

the statement of financial position of the South African Institute for Drug-Free

Sport at 31 March 2008, and the related statement of financial performance and

cash flow statement for the year then ended, as set out on pages 33 to 48.

The management is responsible for these financial statements. We have not

audited or reviewed these financial statements and accordingly express no

assurance thereon.

A SABAN CA (SA)

A SABAN CONSULTING C.C.

CAPE TOWN

31 JULY 2008


The South African Institute for Drug-Free SportStatement of Financial Performance for the year ended 31 March 2008

2008 2007

NOTE R R

REVENUE 6 369 537 6 183 867

Grants received 2 5 200 000 5 000 000

Doping control sales 1 169 537 1 183 867

OTHER INCOME 336 023 73 365

Allowance for doubtful debts 205 155 0

Interest received 75 007 73 365

Profit on foreign exchange 2 669 0

Profit on disposal of assets 3 192 0

Sponsorship 50 000 0

EXPENSES 7 419 108 6 800 393

ADMINISTRATION EXPENDITURE 2 564 697 2 438 073

Accounting fees 165 005 67 830

Advertising 0 18 888

Audit fee 227 511 79 429

Allowance for doubtful debts 0 205 155

Bank charges 13 590 15 234

Cleaning 12 820 10 817

Computer expenses 16 165 24 909

Depreciation 427 939 424 025

Entertainment 25 122 23 636

Honoraria fees 178 326 130 492

Insurance 22 200 25 282

Finance costs 112 9

Legal fees 7 840 0

Loss on foreign exchange 0 28 654

Office rental 230 587 210 314

Postage and telephone 101 066 104 244

Printing and stationery 31 467 32 344

Payroll costs 874 989 980 840

- Net salaries 602 151 720 638

- Employees income tax 218 555 179 596

- Unemployment insurance fund 8 430 9 427

- Skills development levy 6 259 7 886

- Leave pay 0 4 615

- Medical aid 12 168 18 243

- Pension fund 27 426 40 435

Repairs and maintenance 12 934 4 903

RSC levies 0 1 413

Security expenses 4 074 3 739

Staff amenities 34 874 7 754

Staff recruitment and training 13 777 0

Subscriptions 1 106 676

Travelling and accommodation 163 193 37 486



35



34

The South African Institute for Drug-Free SportStatement of Financial Performance for the year ended 31 March 2008

2008 2007

NOTE R R

EDUCATION PROGRAMME 371 831 320 076

Books and magazines 203 783 176 320

Medicine info centre - hotline 45 952 44 670

Research 43 835 0

Seminars and workshops 27 917 26 735

Travelling accommodation and lecture costs 14 784 35 043

Website development costs 35 560 37 308

DOPING CONTROL 4 256 686 3 878 630

Drug kits 355 359 385 080

Opening inventory 373 945 43 630

Drug kits – purchases 340 338 715 395

Closing inventory (358 924) (373 945)

Bad debts 145 879 0

Courier costs 161 932 147 368

Insurance - medical malpractice 70 093 59 731

Printing and stationery 19 721 36 438

Repairs and maintenance 9 198 6 005

Training and development 0 133 357

Travelling accommodation and DCO 1 160 915 1 021 756

reimbursements

Advertising and promotions 0 175

Laboratory analysis 2 333 589 2 088 720

INTERNATIONAL PROJECTS 215 619 145 803

Subscriptions – ANADO 15 685 67 309

Printing and stationery 0 3 156

Travel and accommodation 199 934 75 338

CORPORATE SERVICES 10 275 17 811

Corporate gifts 0 8 208

Quality assurance and costs 10 275 9 603

NET DEFICIT (713 548) (543 161)

TRANSFER FROM GENERAL RESERVE 399 754 399 754

NET DEFICIT FOR THE YEAR (313 794) (143 407)

ACCUMULATED SURPLUS

BROUGHT FORWARD 453 189 596 596

ACCUMULATED SURPLUS AT

THE END OF THE YEAR 139 395 453 189

The South African Institute for Drug-Free SportStatement of Financial Position as at 31 March 2008

2008 2007

NOTE R R

ASSETS

NON - CURRENT ASSETS

Property, plant and equipment 3 817 368 1 197 815

CURRENT ASSETS 1 157 593 1 259 862

Inventories 4 358 924 373 945

Trade and other receivables 5 502 001 270 443

Prepayments and deferred expenses 19 417 0

Loans receivable 4 078 2 750

Cash and cash equivalents 273 173 612 724

TOTAL ASSETS 1 974 961 2 457 677

LIABILITIES

CURRENT LIABILITIES 1 088 734 857 902

Accruals 6 117 459 95 204

Provisions 6 8 132 14 261

Payables 6 963 143 748 437

TOTAL LIABILITIES 1 088 734 857 902

EQUITY

CAPITAL AND RESERVES 886 227 1 599 775

Accumulated surpluses 139 395 453 189

General reserve 7 746 832 1 146 586

TOTAL EQUITY AND LIABILITIES 1 974 961 2 457 677

TOTAL NET ASSETS 886 227 1 599 775



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36

The South African Institute for Drug-Free SportStatement of Changes in Net Assets for the year ended 31 March 2008

GENERAL ACCUMULATED TOTAL

RESERVE FUNDS

R R R

Balance at 31 March 2006 1 546 340 596 596 2 142 936

Utilisation of general reserve (399 754) 399 754 0

Net deficit for the year 0 (543 161) (543 161)

Balance at 31 March 2007 1 146 586 453 189 1 599 775

Utilisation of general reserve (399 754) 399 754 0

Net deficit for the year 0 (713 548) (713 548)

Balance at 31 March 2008 746 832 139 395 886 227

The South African Institute for Drug-Free SportCash Flow Statement for the year ended 31 March 2008

2008 2007

NOTE R R

NET CASH FLOW FROM

OPERATING ACTIVITIES

Cash received from customers 6 129 202 6 184 933

Cash paid to suppliers and creditors (6 496 156) (5 971 564)

Cash (utilised in)/generated from operations 12.1 (366 954) 213 369

Investment income 75 007 73 365

Profit on disposal of assets (3 192) 0

Finance costs (112) (9)

Net cash (outflow)/inflow from operations (295 251) 286 725

NET CASH FLOW FROM

INVESTING ACTIVITIES

Additions to fixed assets (47 839) (15 712)

Proceeds on sale of assets 3 539 0

Net cash outflow from investing activities (44 300) (15 712)

NET CASH FLOW FROM

FINANCING ACTIVITIES

Loans advanced 0 (3 000)

Loans redeemed 0 250

Net cash outflow from financing activities 0 (2 750)

Cash and cash equivalents

Net (decrease)/increase (339 551) 268 263

Cash and cash equivalents at the beginning of

the year 12.2 612 724 344 461

Cash and cash equivalents at the end of the year 12.2 273 173 612 724



39



38

The South African Institute for Drug-Free SportNotes to the Financial Statements for the year ended 31 March 2008

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The annual financial statements have been prepared in accordance with the South African Statements of Generally Accepted

Accounting Practice (GAAP) including any interpretations of such Statements issued by the Accounting Practices Board, with the

effective Standards of Generally Recognised Accounting Practice (GRAP) issued by the Accounting Standards Board replacing

the equivalent GAAP statement as follows:

Standard of GRAP Replaced Statement of GAAP

GRAP 1: Presentation of financial statements AC101: Presentation of financial statements

GRAP 2: Cash flow statements AC118: Cash flow statements

GRAP 3: Accounting policies, changes in accounting AC103: Accounting policies, changes in accounting estimatesestimates and errors and errors.

Currently the recognition and measurement principles in the above GRAP and GAAP Statements do not differ or result in material

differences in items presented and disclosed in the financial statements. The implementation of GRAP 1, 2 and 3 has resulted in

the following changes in the presentation of the financial statements:

Terminology differences:

Standard of GRAP Replaced Statement of GAAP

Statement of financial performance Income statement

Statement of financial position Balance sheet

Statement of changes in net assets Statement of changes in equity

Net assets Equity

Surplus/deficit Profit/Loss

Accumulated surplus/deficit Retained earnings

Contributions from owners Share capital

Distributions to owners Dividends

The cash flow statement can only be prepared in accordance with the direct method.

Specific information has been presented separately on the statement of financial position such as:

(a) Receivables from non-exchange transactions, including taxes and transfers

(b) Taxes and transfers payable

(c) Trade and other payables from non-exchange transactions

Amount and nature of any restrictions on cash balances is required.

Paragraphs 11 – 15 of GRAP 1 have not been implemented due to the fact that the local and international budget reporting

standard is not effective for this financial year. Although the inclusion of budget information would enhance the usefulness of the

financial statements, non-disclosure will not affect the objective of the financial statements.

The following are the principal accounting policies of the entity which are, in all material respects, consistent with those applied

in the previous year, except as otherwise indicated:

Basis of Preparation

The financial statements have been prepared on a going concern basis and the accounting policies have been applied consistently

throughout the period as those applied in the previous year.

1.1 REVENUE RECOGNITION

Revenue consists of Grant Income and Drug Testing revenue. Drug Testing revenue is recognised when the service has been

provided and the costs incurred for the service and the cost to complete the service can be measured reliably.

1.2 IRREGULAR, FRUITLESS AND WASTEFUL EXPENDITURE

Irregular expenditure means expenditure incurred in contravention of, or not in accordance with, a requirement of any applicable

legislation, including:

The PFMA, or any Provincial legislation providing for procurement procedures in that provincial government.

Fruitless and wasteful expenditure means expenditure that was made in vain and would have been avoided had reasonable care

been exercised.

All irregular, fruitless and wasteful expenditure is charged against income in the period in which it is incurred.

1.3 FOREIGN CURRENCIES

These financial statements are presented in the South African Rand since that is the currency in which the majority of the entity's

transactions are denominated.

Transactions in currencies other than the entity's reporting currency ( rand ) are initially recorded at the rates of exchange ruling on the

dates of the transactions. Gains and losses arising from the settlement of such transactions are recognised in the statement of financial

performance.

Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling on the statement of

financial position date. Unrealised differences on monetary assets and liabilities are recognised in the statement of the financial performance

in the period in which they occurred.

1.4 PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is charged so as to write off the

cost or valuation of assets over their estimated useful lives, using the straight line method, on the following basis:



41



40


Rates utilised

Office Equipment 16.67%

Motor Vehicles 25.00%

Furniture and Fittings 16.67%

Computer Equipment 33.33%

EPO Equipment 20.00%

The residual values, useful lives and depreciation method of property, plant and equipment are reviewed on an annual basis.

Profit and losses on disposal of property, plant and equipment are credited and charged to statement of financial performance.

The carrying values of property, plant and equipment are reviewed for impairment on an annual basis. When events or changes

in circumstances indicate that the carrying value may not be recoverable, the assets are written down to their recoverable amount.

1.5 INVENTORY

Inventories are stated at the lower of cost and net realisable value. Cost is determined on a first-in-first-out basis. Inventory consists

of test kits.

1.6 FINANCIAL INSTRUMENTS

Financial instruments carried on the statement of financial performance include cash and bank balances, trade receivables and

trade payables. The particular recognition methods adopted are disclosed in the individual policy statements associated with each

item.

Trade and other receivables

Trade receivables are recognised initially at fair value and measured at amortised cost using the effective interest rate method,

less a provision for impairment. This provision is based on a review of all outstanding amounts at year end and is established when

there is objective evidence that the institute will not be able to collect all amounts due according to the original terms. The amount

of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows,

discounted at the effective interest rate. Bad debts are written off during the year in which they are identified. Subsequent recoveries

of amounts previously written off are credited against the relevant revenue stream in the statement of financial performance.

Trade and other payables

Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest

method.

Cash and cash equivalents

Cash and cash equivalents are measured at fair value.

1.7 PROVISIONS

Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable

that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the

obligation can be made.

1.8 GOVERNMENT GRANTS

Government grants are recorded as deferred income when they become receivable and are then recognised as income on a

systematic basis over the period necessary to match the grants with the related costs which they are intended to compensate.

1.9 LEASE OBLIGATIONS

Leases where the company assumes substantially all the risks and rewards of ownership of assets, are classified as finance leases.

All other leases are classified as operating leases.

Finance Leases

Assets subject to finance lease agreements are capitalised at their cash cost equivalent and the corresponding liabilities are raised.

The cost of the assets is depreciated at appropriate rates on the straight-line basis over the estimated useful lives of the assets.

Lease payments are allocated between the lease finance cost and the capital repayment using the effective interest rate method.

Lease finance costs are expensed when incurred.

Operating Leases

Lease payments under operating leases are recognised in surplus or deficit on a straight line basis over the expected lease term.

2. GRANTS RECEIVED2008 2007

R R

Sport and Recreation South Africa 5 200 000 5 000 000

5 200 000 5 000 000



43



42

The South African Institute for Drug-free SportNotes to the Financial Statements for the year ended 31 March 2008

3. PROPERTY, PLANT AND EQUIPMENTR R R R R R

2008 Office equipment EPO equipment Motor vehicles Furniture & fittings Computer equipment Total

Carrying value at the beginning of year 22 668 1 145 355 2 592 13 482 13 718 1 197 815

Cost 35 503 1 998 769 231 739 194 330 169 194 2 629 535

Accumulated depreciation (12 835) (853 414) (229 147) (180 848) (155 476) (1 431 720)

Depreciation (6 977) (399 754) (1 726) (3 976) (15 506) (427 939)

Additions 8 589 0 0 39 250 47 839

Asset write on : Cost 4 579 0 0 0 6 577 11 156

Asset write on : Accumulated depreciation (1 161) 0 0 0 (4 382) (5 543)

Disposals (4 093) 0 0 0 (1 867) (5 960)

Cost (4 150) 0 0 0 (90 294) (94 444)

Accumulated depreciation 57 0 0 0 88 427 88 484

Carrying value at the end of year 23 605 745 601 866 9 506 37 790 817 368

Cost 44 521 1 998 769 231 739 194 330 124 727 2 594 086

Accumulated depreciation (20 916) (1 253 168) (230 873) (184 824) (86 937) (1 776 718)

R R R R R R

2007 Office equipment EPO equipment Motor vehicles Furniture & fittings Computer equipment Total

Carrying value at the beginning of year 23 076 1 545 109 4 891 15 958 17 094 1 606 128

Cost 30 723 1 998 769 231 739 191 078 161 514 2 613 823


Depreciation (5 188) (399 754) (2 299) (5 728) (11 056) (424 025)

Additions 4 780 0 0 3 252 7 680 15 712

Carrying value at the end of year 22 668 1 145 355 2 592 13 482 13 718 1 197 815

Cost 35 503 1 998 769 231 739 194 330 169 194 2 629 535


Certain items of computer and office equipment have been reinstated at its full cost and related accumulated depreciation in the current year.



45



44


2008 2007

R R

4. INVENTORIES

The amounts attributable to the different categories are as follows:

Finished goods 358 924 373 945

358 924 373 945

5. TRADE AND OTHER RECEIVABLES

Receivables 502 001 475 598

Less: Allowance for doubtful debts 0 (205 155)

502 001 270 443

The carrying value of trade and other receivables approximate the fair value thereof. A provision for doubtful debt is made after

assessing each individual debtor and recovery thereof appears to be doubtful.

Trade receivables analysis

0 – 30 days 206 517 226 880

30 – 60 days 0 23 912

60 – 120 days 129 169 1 092

Over 120 days 166 315 223 714

Provision for doubtful debts 0 (205 155)

502 001 270 443

6. TRADE AND OTHER PAYABLES

Payables 963 143 748 437

Accruals 117 459 95 204

The carrying value of trade and other payables is a reasonable approximation of fair value.

Provisions

Carrying amount Additional Used during Un-used Carrying

at beginning of Provisions the year amounts amount

year reversed during at end of year

the year

R R R R R

Leave pay 4 615 0 (4 615) 0 0

Annual bonus 9 646 8 132 (9 646) 0 8 132

14 261 8 132 (14 261) 0 8 132

2008 2007

R R

7.��GENERAL RESERVE

Special Grant - Testing equipment 746 832 1 146 586

746 832 1 146 586

Special grant received in advance for purchase of laboratory testing equipment.

8. DIRECTORS EMOLUMENTS

The following emoluments were paid or credited to the directors during the year:

Executive Director : D Bradbury ( Chief Executive Officer ) 0 392 309

Executive Director : MF Galant (acting Chief Executive Officer ) 504 598 0

Non - Executive Directors - Honoraria Fees

Dr. SI Manjra ( Chairperson ) 98 296 75 664

Prof. Y Coopoo 2 880 3 600

Mr. R Hack 3 544 2 535

Mr. C Hattingh 22 596 14 090

Prof. W Hawksworth 12 240 12 922

Dr. D Constantinou 10 800 11 040

Ms. C Maphai 1 440 2 880

Ms. S Meltzer 5 760 4 881

Dr. S Motaung 1 440 2 880

Ms. N Ntanjana 2 105 0

Dr. EM Chabula-Nxiweni 1 052 0

Prof. JAO Ojewole 2 105 0

Dr. MB Goqwana 2 105 0

Dr. I Jakoet 8 806 0

Dr. H Adams 1 052 0

Dr. JRV Ramathesele 2 105 0

682 924 522 801

9. EMPLOYEE BENEFITS

Defined Contribution Plan

Included in payroll costs are contributions to a defined contribution retirement plan in respect of services in a particular period.

This is funded by both member and entity contributions, which are charged to the statement of financial performance as they are

incurred.



47



46


2008 2007

R R

The total entity contribution to such schemes in 2008 was R27 426 (2007: R40 435)

The funds cover the eligible employees, other than those employees who opt to be or are required by legislation to be members

of various Industry funds. Eligible employees that belonged to the funds, amounted to 25% (2007: 20%).

Medical Aid

The company contributes to a Medical Aid scheme for employees. The costs of these contributions are charged to the statement

of financial performance as they are incurred.

The total entity contributions to such schemes in 2008 was R12 168 (2007: R18 243)

10. SURPLUS/DEFICIT FROM OPERATIONS

Deficit from operations has been arrived at after taking into account the following:

Expenditure

Auditors remuneration 227 511 79 429


Directors emoluments 682 924 522 801

Net foreign exchange losses 0 28 654

Revenue

Interest received 75 007 73 365

Doping control sales 1 169 537 1 183 867

Government grants 5 200 000 5 000 000

Net foreign exchange gain 2 669 0

Profit on disposal of assets 3 192 0

11. FINANCIAL INSTRUMENTS

Financial Risk Management

Financial instruments are used to cover risks linked to the entity's activity. Each instrument is tied to an asset or liability as an

operational or financing transaction.

Foreign Exchange Risk

The entity carries out a significant portion of its sales in foreign currencies. Hedging instruments are not used to reduce the risks

arising from foreign currency fluctuations against the entity's own currency.

2008 2007

R R

Interest Rate Risk

The entity is not exposed to any interest rate risk on its financial liabilities. Short-term cash surpluses are deposited with a major

bank of a high quality credit standing. These deposits attract interest at rates linked directly to the prime overdraft rate.

Sensitivity analysis

Foreign exchange risk –USD +7% -7%

Receivables 29 646 -29 646

The monthly average exchange rate for the quarter pre and post year end was used to assess the impact of exchange rate risk

on the entity.

The 7% appreciation or depreciation in the Rand will result in an adjustment of R29 646 to surplus or deficit.

Foreign exchange risk -EUROS +11% -11%

Payables 37 935 -37 935

The monthly average exchange rate for the quarter pre and post year end was used to assess the impact of exchange rate risk

on the entity.

The 11% appreciation or depreciation in the Rand will result in an adjustment of R37 935 to surplus or deficit.

Interest rate risk +3% -3%

Bank balances 8 187 -8 187

Actual changes to the prime lending rate for the quarter pre and post year end was used to assess the impact of interest rate

risk on the entity.

A 3% fluctuation in the prime lending rate will result in an adjustment of R8 187 to surplus or deficit.

Credit Risk

The entity only deposits cash surpluses into major banks of high quality credit standing.

Trade accounts receivable comprise a widespread customer base. Ongoing credit evaluations of the financial position of the

customers is performed.

Liquidity Risk

The company has minimised its liquidity risk by monitoring forecast cash flows and ensuring that it has adequate banking facilities

and borrowing capacity.

The financial liabilities, as at the reporting date, have contractual maturity dates of less than 12 months.



48

Annual Report

SAIDS2007-2008

The South African Institutefor Drug-Free Sport

Thank You toour Supporters

South African DopingControl Laboratory

Sport and RecreationSouth Africa

WADA Africa

Supersport


2008 2007

R R

12. CASH FLOW NOTES12.1 Reconciliation of net deficit to cash utilised in operations

Net deficit for the year (713 548) (543 161)

Adjusted for:


Movement in provisions (6 129) (11 732)

Investment income (75 007) (73 365)

Finance costs 112 9

Operating deficit before working capital changes (366 633) (204 224)

Working capital changes (321) 417 593

Increase/(decrease) in accounts receivable (252 303) 1 066

Increase in accounts payable 236 961 746 842

Decrease/(increase) in inventories 15 021 (330 315)

Cash utilised in operations (366 954) 213 369

12.2 Cash and cash equivalents

Opening balance

Cash at bank 612 724 344 461

Closing balance

Cash at bank 273 173 612 724

13. FRUITLESS AND WASTEFUL EXPENDITURE

Reconciliation of fruitless and wasteful expenditure

Opening balance 0 0

Fruitless and wasteful expenditure – current year 4 078 0

Fruitless and wasteful expenditure condoned 0 0

Transfer to receivables for recovery (4078) 0

Fruitless and wasteful expenditure awaiting condonement 0 0

0 0

Incident Disciplinary steps taken/criminal proceedings

Erroneously paying a board member honorarium. None as the payment was due to an administrative oversight that was

detected immediately.

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