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The Guardian’s Fund
annual report
2015/2016
The Guardian’s Fund • Annual Report 2015/16 Financial Year 2
ContentsReport of the accounting officer on the activities of the Guardian’s Fund 4for the year ended 31 March 2016
Report of the audit committee 9 Report of the auditor general to Parliament 12 Statement of financial performance for the year ended 31 March 2016 15 Statement of financial position as at 31 March 2016 15 Statement of changes in net assets for the year ended 31 March 2016 16
Cash flow statement for the year ended 31 March 2016 16
Accounting policies 17
Notes to the financial statements for the year ended 31 March 2016 20
Risk management statement 41
The Guardian’s Fund • Annual Report 2015/16 Financial Year 3
Report of the Accounting Officer
The Guardian’s Fund • Annual Report 2015/16 Financial Year 4
REPORT OF THE ACCOUNTING OFFICER ON THE ACTIVITIES OF THE GUARDIAN’S FUND FOR THE YEAR ENDED 31 MARCH 2016
Introduction
The Guardian’s Fund (GF) is a statutory trust established in terms of Chapter V of the Administration of Estates Act, 1965 (Act 66 of 1965). The GF consists of all monies received by the Master of the High Court under the Administration of Estates Act, or any other law or pursuant to an order of court, or any money accepted by the Master in trust for any known or unknown person. Whenever any money is received or accepted by the Master, he or she must open an account in the books of the GF in the name of the person to whom the money belongs, or in the name of the estate of which the money forms part. The Master must, on application of any person who has become entitled to receive money from the Fund, pay that money to the applicant.
The purpose of the GF is therefore to protect and manage monies of persons deemed to be legally incapable or lacking the capacity to manage their own affairs as well as undetermined, unknown or absent heirs and untraceable persons.
The GF is held under management of the Masters of the High Courts of South Africa.
Some of the functions of the GF performed with the prescripts of the said Act, inter alia, are to -
�� Invest trust monies held with the Public Investment Corporation (PIC);
�� Calculate interest accruing in respect of monies received on behalf of beneficiaries at the interest rate as determined by the Minister for Justice and Constitutional Development annually; and
�� Process inheritance applications and make the payments to persons entitled thereto.
Core Service Delivery Environment
The GF has representation in 6 Masters’ offices, namely:
Pretoria, Cape Town, Pietermaritzburg, Grahamstown, Bloemfontein and Kimberley.
An additional 79 points of service throughout the country were established to assist with the GF customer interaction and making services available, thereby relieving the financial burden on vulnerable beneficiaries having to travel long distances to the Masters Offices to submit their applications.
The GF has a strategic objective to process completed applications and make payment to beneficiaries within 40 days. The GF is pleased to report that the Target of 90% for the 2015/16 year was successfully achieved, as 93% of beneficiaries were paid out within the 40 days.
The Guardian’s Fund • Annual Report 2015/16 Financial Year 5
Coupled with this, all GF Offices are utilising the ABSA Bi-Online Electronic payment system and have achieved 99% EFT payment transactions for the 2015/16 financial year, which enhances the turnaround time in payment of benefits.
The GF currently operates 3 electronic stand-alone systems: Guardians Fund System (Administrative); ABSA EFT System (Payment) and Great Plains System (Accounting). With the growth of the Fund, it is necessary for the GF to evolve to a single, fully integrated financial system.
During the 2015/16 year, the GF had engagements with various parties in relation to financial systems, so as to improve alignment with the Government Pension Administration Agency.
Coupled with this, the Third Party Funds piloted a new SAP based Financial system which the GF will evaluate and assess functionality for adaptation for the GF environment and business rules. It is envisaged that in the 2016/17 year, the GF system modernisation strategy will be approved and implementation phases will commence.
Growth of Beneficiary Liability
As has been disclosed in more detail in the financials on pages 15 to 42, it is illustrated below that the Fund continues to show positive growth in the volume of transactions handled, as well as in the total funds under management.
Guardian’s Fund Beneficiary Receipts and Payments
1, 600
1,400
1,200
1,000
800
600
400
200
0
2011/12 2012/13 2013/14 2014/15 2015/16
Beneficiary Receipts 1,422 1,306 1,342 1,318 1,486
Beneficiary Payments 872 1,018 1,130 1,105 1,352
-13%
Rand Millions
14%12%
-2%
-2%
13%
22%5%
The Guardian’s Fund • Annual Report 2015/16 Financial Year 6
12,000
10,000
8,000
6,000
4,000
2,000
0
2011/12 2012/13 2013/14 2014/15 2015/16
Beneficiary Liability 7,253 7,976 8,589 9,365 10,106
Total Assets 7, 872 8,659 9,360 10,202 11,063
Rand Millions
8%8%
9%8%
8%9%
10%
12/03/31 13/03/31 14/03/31 15/03/31 16/03/31
10%
Guardian’s Fund - Transaction volumes (receipt and payments)
70,000
60,000
50,000
40,000
30,000
20,000
10,000
0
2011/12 2012/13 2013/14 2014/15 2015/16
Receipts transactions 24,422 25,883 18,312 17,824 22,054
Payments transactions 56,191 55,688 60,675 56,924 58,531
6%
-1%
-29%
-6%
-3%24%
3%9%
Guardian’s Fund- Total assets vs beneficary liabilities
The Guardian’s Fund • Annual Report 2015/16 Financial Year 7
Fraud Prevention and Detection
The GF has a Fraud Prevention Strategy, as well as a fully functional and capacitated Forensic Directorate, to ensure that all fraud and loss matters, as well as potential maladministration, is addressed pro-actively.
The GF also has a relationship with Law Enforcement agencies, and at times will engage them on matters should it be necessary, as was done in 2012/13 when the Special Investigations Unit was appointed to investigate loss of funds and the management of the Guardian’s Fund in Pretoria and Pietermaritzburg offices.
The GF also performs a risk assessment annually to identify and address any emerging risk areas in order to ensure the integrity and safety of the beneficiary funds within the GF.
Investment Management
The Office of the Chief Financial Officer, with assistance from the Office of the Chief Master, is responsible for formulation and supervision of the mandate given to the Investment Manager (the Public Investment Corporation).
With a balance sheet of R11 billion (and growing) in investable assets, the stewardship of GF assets is a challenging and complex endeavour. I would like to take this opportunity to extend my sincere gratitude to our expert investment advisors and also to colleagues at National Treasury who have ensured that the Department is able to discharge its obligations and match the expectations and the safeguarding of the GF assets and the growing of investments.
The GF is pleased to report that, in the 2015/16 year, the Fund generated more than R737 million in investment income and was able to pass an additional 50 basis points (above market interest rate) to the beneficiaries.
The rate of interest was 7.30% per annum for the financial year under review.
Acknowledgement
My appreciation towards the loyal support and valuable contributions of the various stakeholders is hereby acknowledged.
Approval
The annual financial statements as set out pages 15 to 42 have been approved by the Accounting Officer.
___________________
Mr V. MadonselaAccounting OfficerDepartment of Justice and Constitutional DevelopmentDate: 29 July 2016
The Guardian’s Fund • Annual Report 2015/16 Financial Year 8
Report of the Audit Committee
The Guardian’s Fund • Annual Report 2015/16 Financial Year 9
REPORT OF THE AUDIT COMMITTEE ON GUARDIAN’S FUND
1. REPORT OF THE AUDIT COMMITTEE
We are pleased to present our final report for the financial year ended 31 March 2016.
1.1 AUDIT COMMITTEE MEMBERS AND ATTENDANCE
The Audit Committee consists of the members listed below and is required to meet at least four times per annum as per its approved terms of reference. During the current year 4 meetings and 2 special meetings were held as indicated below.
Name of members Numbers of meetings attended
Number of special meetings attended
Status
Mr. Motsamai Karedi (Chairperson)
4 2 Reappointed- 25 November 2015
Mr. Cedric Boltman 4 2 Reappointed- 25 November 2015
Ms. Besky Ngunjiri 4 1 Reappointed - March 2015
Mr. Wilson Ramabulana 4 2 Reappointed- 25 November 2015
Mr Andy Sello 4 2 Reappointed- 25 November 2015
1.2 AUDIT COMMITTEE RESPONSIBILITY
We report that we have complied with its responsibilities arising from Section 38 (1) (a) (ii) of the Public Finance Management Act and Treasury Regulation 3.1.13. The Audit Committee also reports that it has adopted appropriate formal terms of reference on its Audit Committee Charter. The charter has regulated its affairs and the Audit Committee has discharged all its responsibilities as contained therein.
1.3 THE EFFECTIVENESS OF INTERNAL CONTROL
The Audit Committee is satisfied that key controls remained in place throughout the year under review and where shortcomings in the internal controls were identified; management has addressed them through implementation of audit action plans. Internal Audit validated the audit action plans and the Audit Committee reviewed same to ensure effective implementation by management.
10 The Guardian’s Fund • Annual Report 2015/16 Financial Year
There has also been an improvement in the risk maturity level within the Department and that had contributed to the effectiveness of controls.
1.4 INTERNAL AUDIT
The Department of Justice and Constitutional Development’s Internal Audit Unit is also responsible for the auditing of Guardian’s Fund.
The Internal Audit unit has discharged its responsibilities as per the internal audit charter and plans.
1.5 AUDITOR-GENERAL SOUTH AFRICA
The Audit committee accepts and concurs with the unqualified audit opinion of the AGSA on Guardian’s Fund for the year ended 31 March 2016.
1.6 REPORTS
1.6.1 The quality of in-year management and monthly/quarterly reports submitted in terms of the PFMA
The Audit committee has reviewed the monthly and quarterly reports and where concerns were raised, management acted on them and the Audit Committee monitored progress throughout the year.
1.6.1 Evaluation of financial statements
We have reviewed and discussed the audited annual financial statements with management and also reviewed the Department’s compliance with legal and regulatory provisions. We have also reviewed the Auditor-General South Africa’s report, management letter and management’s responses to it and the Audit Committee is satisfied with the contents thereof.
_________________
M KarediChairperson of the Audit CommitteeDate: 29 July 2016
The Guardian’s Fund • Annual Report 2015/16 Financial Year 11
Report of the Auditor-General to Parliament
12 The Guardian’s Fund • Annual Report 2015/16 Financial Year
Report of the Auditor-General to Parliament on Guardian’s Fund
Report on the financial statements
Introduction
1. I have audited the financial statements of the Guardian’s fund set out on pages 15 to 42 which comprise statement of financial position as at 31 March 2016, the statement of financial performance, statement of changes in net assets, and cash flow statement for the year then ended, as well as the notes, comprising a summary of significant accounting policies and other explanatory information.
Accounting Officer’s responsibility for the financial statements
2. The accounting officer is responsible for the preparation and fair presentation of these financial statements in accordance with South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP), and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor-general’s responsibility
3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with International Standards on Auditing. Those standards require that I comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
4. 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 ma-terial 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 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 effective-ness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
Opinion
6. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Guardian’s fund as at 31 March 2016 and its financial performance and cash flows for the year ended, in accordance with South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP).
The Guardian’s Fund • Annual Report 2015/16 Financial Year 13
Report on other legal and regulatory requirements
7. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) and the general notice issued in terms thereof, I have a responsibility to report findings on compliance with legislation and internal control. The objec-tive of my tests was to identify reportable findings as described under each subheading but not to gather evidence to express assurance on these matters. Accordingly, I do not express an opinion or conclusion on these matters.
Predetermined objectives
8. I did not audit performance against predetermined objectives, as the Fund is not required to prepare a report on its performance against predetermined objectives. The Fund does not fall within the ambit of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA) and is not subject to entity-specific legislation that requires reporting on performance against predetermined objectives.
Compliance with legislation
9. I performed procedures to obtain evidence that the Guardian’s Fund had complied with applicable legislation re-garding financial matters, financial management and other related matters. I did not identify any instances of mate-rial non-compliance with specific matters in key legislation, as set out in the general notice issued in terms of the PAA.
Internal control
10. I considered internal control relevant to my audit of the financial statements, and compliance with legislation. I did not identify any significant deficiencies in internal control.
Auditor-General Pretoria29 July 2016
14 The Guardian’s Fund • Annual Report 2015/16 Financial Year
Financial Statements
15The Guardian’s Fund • Annual Report 2015/16 Financial Year
STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2016
Notes 2016 2015
R R
Revenue Investment revenue 3 737 137 008 641 996 674
Less: Expenditure
Management fees 11 3 003 967 2 730 734
Losses: Financial Instruments 16 6 889 066
Surplus/(deficit) for the year before distribution to beneficiaries
734 133 041 632 376 874
Distribution to beneficiaries - Interest paid on beneficiary monies
4 613 066 875 566 430 525
Surplus/(deficit) for the year 121 066 166 65 946 349
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2016
Notes 2016 2015
R R
ASSETS
11 062 971 776 10 200 130 246
Other receivables 7 390 231 255 527
Financial instruments 5 10 626 438 574 9 903 520 852
Cash and cash equivalents 6 436 142 971 296 353 866
Total assets 11 062 971 776 10 200 130 246 LIABILITIES
10 106 873 295 9 365 097 931
Beneficiary liability 8 10 103 430 409 9 359 808 888
Other payables 9 3 442 886 5 289 043
Total liabilities 10 106 873 295 9 365 097 931
CAPITAL AND RESERVES
956 098 481 835 032 315
Accumulated surplus/(deficit) 10 956 098 481 835 032 315
Total net assets 956 098 481 835 032 315
Total net assets and liabilities 11 062 971 776 10 200 130 246
16 The Guardian’s Fund • Annual Report 2015/16 Financial Year
STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 31 MARCH 2016
AccumulatedSurplus (Deficit)
Total Equity
Balance as at 1 April 2015 835 032 315 835 032 315
Surplus/(deficit) for the year 121 066 166 121 066 166
Balance as at 31 March 2016 956 098 481 956 098 481
STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 31 MARCH 2015
AccumulatedSurplus (Deficit)
Total Equity
Balance as at 1 April 2014Less: Restatement - Note 17.1
770 472 098
1 386 132
770 472 098
1 386 132
Restated Opening Balance as at 1 April 2014 769 085 966 769 085 966
Prior year surplus before restatement:
Restated adjustment - Note 17.1
68 318 298
2 371 949
68 318 298
2 371 949
Balance as at 31 March 2015 835 032 315 835 032 315
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2016
Notes 2016R
2015R
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts on behalf of beneficiaries -735 642 162 -640 747 722
Cash paid to beneficiaries and creditors 617 811 453 572 003 737
Cash generated from/(utilised in) operations 13 -117 830 709 -68 743 985
Investment income received 736 746 776 641 741 146
Interest paid to beneficiaries -613 066 874 -566 430 525
Creditor payments -4 750 045 -5 578 368
Net cash inflows/(outflows) from operating activities 1 099 148 988 269
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash flows from investing activities 9 981 470 -193 096 014
Net investments of beneficiary monies in PIC 9 981 470 -193 096 014
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash flow financing activities 128 708 488 207 845 143
Increase/(decrease) in beneficiary liability 128 708 488 207 845 143
Net increase/(decrease) in cash and cash equivalents 139 789 106 15 737 398
Cash and cash equivalents at the beginning of the year 296 353 866 280 616 468
Cash and cash equivalents at end of the year 6 436 142 971 296 353 866
17The Guardian’s Fund • Annual Report 2015/16 Financial Year
GUARDIAN’S FUND
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2016
ACCOUNTING POLICIES
1. GENERAL INFORMATION The Guardian’s Fund is a statutory trust established in terms of Chapter V of the Administration of Estates Act, 1965 (Act 66 of
1965).
The purpose of the Guardian’s Fund is to protect and manage monies of persons deemed to be legally incapable or lacking the capacity to manage their own affairs as well as undetermined, unknown or absent heirs and untraceable persons.
The Guardian’s Fund is held under management of the Masters of the High Court of South Africa.
2. PRINCIPAL ACCOUNTING POLICIES The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have
been consistently applied to all the years presented, unless otherwise stated.
2.1 Basis of preparation The financial statements have been prepared on the historical cost basis, except for investments that have been measured at
fair value. The financial statements are presented in Rands. The financial statements have been prepared on a going concern basis.
Statement of compliance The financial statements of the Guardian’s Fund have been prepared in accordance with South Africa Standards of Generally
Recognised Accounting Practice as required by the Public Finance Management Act (Act No. 1 of 1999) (PFMA).
2.2 Summary of significant accounting policies
2.2.1 Financial instruments Financial instruments at Fair Value The classification depends on the purpose for which the financial assets were acquired, and is determined by management at
the initial recognition of the financial assets. Financial instruments are classified at fair value and are comprised of a portfolio of money market instruments. Money market investments were designated at fair value as these instruments are non-derivative instruments and payments can be determined by the fund.
Fair value financial assets are measured with consideration that unrealised gains and losses are recognised directly in surplus or deficit. Interest earned whilst holding fair value financial investments is reported as interest income using the effective interest rate. Dividends earned whilst holding fair value financial investments are recognised in the statement of changes in net assets as “other operating income” when the right of the payment has been established. The losses arising from impairment of such investments are recognised in the statement of financial performance in “impairment losses on financial investments”, and adjusted on a monthly basis.
Financial assets, other than those at Fair Value Through Profit or Loss (FVTPL), are assessed for indicators of impairment at the end of each reporting period. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.
(i) Date of recognition Purchases or sales of financial assets that require delivery of assets within the time frame generally established by regulations
or convention in the marketplace are recognised on the date that the Guardian’s Fund commits to purchase or sell the asset.
(ii) Initial recognition of financial instruments The classification of financial instruments at initial recognition depends on the purpose for which the financial instruments
were acquired and their characteristics. All financial instruments are measured initially at their fair value, and transaction costs on financial instruments at fair value through surplus or deficit are recognised in surplus or deficit.
18 The Guardian’s Fund • Annual Report 2015/16 Financial Year
(iii) Subsequent Measurement Financial Instruments at fair value through surplus or deficit are subsequently measured at fair value, with gains and losses
arising from changes in fair value being included in surplus or deficit for the period.
(iv) De-recognition The financial instrument is de-recognised when the contractual agreement in respect of the financial assets is terminated.
2.2.2 Cash and cash equivalents Demand deposits and other short-term highly liquid investments that are readily convertible to a known amount of cash, and
are subject to an insignificant risk of changes in value, are disclosed under another category of financial instrument, depending on the nature.
Cash and cash equivalents that do not have fixed and determined payments will be classified as available-for-sale financial assets.
Cash and cash equivalents and bank borrowings are recorded at face value.
2.2.3 Revenue recognition The Guardian’s Fund recognises revenue when the amount of revenue can be reliably measured, it is probable that future
economic benefits will flow to the entity, and specific criteria in terms of the Estates Act,1965 (Act 66 0f 1965), have been met.
Interest Income Interest revenue is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable,
which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount.
2.2.4 Financial Liability This includes Beneficiary Liability and Other Payables
(i) Initial Recognition The Financial Liability is initially recognised at historical cost at the date of receipt of the monies due by the Fund to external
parties.
(ii) Subsequent Recognition After initial recognition, the liability is measured at the value of the amount owing to the external parties, whom have a right
against the fund, after taking into account the provisions of the Estates Act, 1965 (Act 66 of 1965).
(iii) De-recognition The financial liability is de-recognised when the obligation of the Guardian’s Fund to the external parties has been extinguished.
2.2.5 Related Party Disclosure The Guardian’s Fund was established in terms of the Administration of Estates Act and operates within the Department of
Justice and Constitutional Development. The Guardian’s Fund resides in the Branch of the Office of the Chief Master, and all operating costs are funded by the Department.
The integration of the Guardian’s Fund sections in the Office of the Chief Master creates a complex environment in which to estimate the values of the related party (The Department of Justice and Constitutional Development).
Other Related Party transactions are disclosed in terms of the requirements of the standards as in Note 12.
2.2.6 Fraud and losses
(i) Initial Recognition Fraud is defined as the unlawful and intentional making of a misrepresentation resulting in actual or potential prejudice to
the Fund, while losses result from any other cause that may not be intentional. Fraud and losses are administered in line with
19The Guardian’s Fund • Annual Report 2015/16 Financial Year
Section 12 of the Treasury Regulations and are disclosed in note 14 on the financial statements as and when they are discovered and reported by the relevant GF Offices to the Departments forensic directorate for investigation. They are not disclosed on the face of the balance sheet.
(ii) Subsequent Recognition and de-recognition A Loss Control Officer keeps a register in which particulars of all losses are recorded. For instance, steps taken, amount recovered
or not recovered and how the matter has been disposed of, must be recorded in this register. Every year the note is updated with the movement in the register.
2.2.7 Allocation account
(i) Initial Recognition The Guardian’s Fund operated in a manual environment prior to 31 March 2005. From 1 April 2005 an administrative electronic
system called the Guardian’s Fund System (GFS), from which the beneficiary liability figures are derived, was introduced. The allocation account is used primarily to apportion transactions that are received through the suspense account to the various types of beneficiary liabilities and also to cater for verification difference.
(ii) Subsequent Recognition The allocation account is adjusted yearly with all financial adjustments made to beneficiary accounts that relate to prior financial
periods.
(iii) De-recognition The allocation account will be de-recognised when the financial benefit to or obligation by the fund is extinguished.
2.2.8 Other Receivables
(i) Initial Recognition These are various amounts that are owed to the fund from its day to day operations. Other receivables are measured at initial
recognition at fair value.
(ii) Subsequent Recognition Appropriate allowances for estimated irrecoverable amounts are recognised in profit or loss when there is objective evidence
that the asset is impaired. Subsequently, these are reported at their net realisable value.
(iii) De-recognition Other receivables are de-recognised when they are fully paid or when there is objective evidence that the amounts will not be
collectible.
2.2.9 Interest paid to beneficiaries
(i) Initial Recognition Interest paid is an expense that represents monies paid to the beneficiaries by the Fund. It is credited to the beneficiary accounts
through the GFS. Interest is accrued from the next calendar month after receipt date up to five years after it has become claimable, unless it is legally claimed before such expiration.
(ii) Subsequent Recognition Interest paid is adjusted in retrospect every year because of the verification process and other adjustments to beneficiary
balances.
20 The Guardian’s Fund • Annual Report 2015/16 Financial Year
GUAR
DIAN
’S FU
ND
NOTE
S TO
THE
FINA
NCIA
L STA
TEM
ENTS
FOR
THE Y
EAR
ENDE
D 31
MAR
CH 2
016
Tota
lPr
etor
iaPi
eter
mar
itzbu
rgGr
aham
stow
nCa
pe To
wnBl
oem
font
ein
Kim
berle
yNa
t-Off
Inv
RR
RR
RR
R
3.In
vest
men
t rev
enue
- 31
/03/
2016
Inte
rest
reve
nue -
PIC
-733
081
663
-350
870
289
-165
917
950
-89
327
859
-52
142
620
-56
274
927
-17
526
683
-1 0
21 3
33
Cash
and
cash
equ
ival
ents
:
Inte
rest
reve
nue -
PIC
-83
280
-83
280
Inte
rest
reve
nue -
ABSA
-3 9
72 0
65-1
225
464
-1 2
37 0
16-4
44 3
82-3
64 4
14-5
61 5
31-1
39 2
58
-737
137
008
-352
095
753
-167
154
966
-89
772
241
-52
507
034
-56
836
458
-17
665
941
-1 1
04 6
13
3.In
vest
men
t rev
enue
- 31
/03/
2015
Inte
rest
reve
nue -
PIC
-638
271
391
-297
130
957
-149
240
974
-78
126
192
-45
182
088
-52
150
129
-15
523
186
-917
865
Cash
and
cash
equ
ival
ents
:
Inte
rest
reve
nue -
PIC
-75
559
-75
559
Inte
rest
reve
nue -
ABSA
-3 6
49 7
25-1
160
367
-1 2
64 3
37-4
02 2
79-2
38 5
81-4
77 4
17-1
06 7
44
-641
996
674
-298
291
324
-150
505
311
-78
528
471
-45
420
669
-52
627
546
-15
629
930
-993
424
21The Guardian’s Fund • Annual Report 2015/16 Financial Year
GUAR
DIAN
’S FU
ND
NOTE
S TO
THE
FINA
NCIA
L STA
TEM
ENTS
FOR
THE Y
EAR
ENDE
D 31
MAR
CH 2
016
Tota
lPr
etor
iaPi
eter
mar
itzbu
rgGr
aham
stow
nCa
pe To
wnBl
oem
font
ein
Kim
berle
yNa
t-Off
Inv
RR
RR
RR
R
4.IN
TERE
ST P
AID
- 31/
03/2
016
Inte
rest
paid
to in
tere
st be
arin
g be
nefic
iaries
.In
tere
st is
calcu
lated
at th
e gaz
ette r
ate
and
capi
talise
d at
mon
th en
d.In
tere
st is
accru
ed fr
om th
e nex
t ca
lenda
r mon
th af
ter r
eceip
t date
up
to
five y
ears
after
it h
as b
ecom
e clai
mab
le,
unles
s it i
s leg
ally c
laim
ed b
efore
such
ex
pira
tion.
613
066
875
278
368
830
144
248
822
84 7
75 2
5232
587
037
55 5
82 2
3017
504
703
613
066
875
278
368
830
144
248
822
84 7
75 2
5232
587
037
55 5
82 2
3017
504
703
4.IN
TERE
ST P
AID
- 31/
03/2
015
Inte
rest
paid
to in
tere
st be
arin
g be
nefic
iaries
.In
tere
st is
calcu
lated
at th
e gaz
ette r
ate
and
capi
talise
d at
mon
th en
d
566
430
525
251
311
125
139
098
371
77 3
45 8
7329
769
841
52 8
14 6
4316
090
671
Inte
rest
is ac
crued
from
the n
ext
calen
dar m
onth
afte
r rec
eipt d
ate u
p to
fiv
e yea
rs aft
er it
has
bec
ome c
laim
able,
un
less i
t is l
egall
y clai
med
befo
re su
ch
expi
ratio
n.
566
430
525
251
311
125
139
098
371
77 3
45 8
7329
769
841
52 8
14 6
4316
090
671
22 The Guardian’s Fund • Annual Report 2015/16 Financial Year
GUA
RDIA
N’S
FUND
NOTE
S TO
THE
FINA
NCIA
L STA
TEM
ENTS
FOR
THE Y
EAR
ENDE
D 31
MAR
CH 2
016
Tota
lPr
etor
iaPi
eter
mar
itzbu
rgGr
aham
stow
nCa
pe To
wnBl
oem
font
ein
Kim
berle
yNa
t-Off
Inv
RR
RR
RR
RR
5.FI
NANC
IAL I
NSTR
UMEN
TS -
31/0
3/20
16
PIC
Inve
stmen
tOp
enin
g ba
lanc
e as
at 1
Apr
il 20
159
903
520
852
4 73
9 58
0 94
22
290
479
050
1 19
1 03
4 44
767
9 26
7 11
977
5 52
7 42
522
7 63
1 86
8
Inve
stmen
t inc
ome r
eceiv
ed d
urin
g fin
ancia
l yea
r73
2 06
0 32
835
0 87
0 28
916
5 91
7 95
089
327
859
52 1
42 6
2056
274
927
17 5
26 6
83
Addi
tions
dur
ing
the y
ear
250
500
000
140
000
000
30 0
00 0
0037
000
000
18 5
00 0
0013
000
000
12 0
00 0
00
Disp
osals
dur
ing
the y
ear
-135
000
000
-45
000
000
-45
000
000
-5 0
00 0
00-
-32
000
000
-8 0
00 0
00
Tradi
ng C
ash
Mov
emen
t-1
21 6
44 1
07-1
9 82
5 61
3-3
4 90
2 40
8-2
0 10
3 74
9-1
3 72
8 44
6-2
2 41
3 85
6-1
0 67
0 03
6
Man
agem
ent e
xpen
ses
-2 9
98 4
99-1
424
230
-684
245
-367
575
-213
331
-234
673
-74
445
Clos
ing
bala
nce
as a
t 31
Mar
ch 2
016
10 6
26 4
38 5
745
164
201
389
2 40
5 81
0 34
71
291
890
982
735
967
962
790
153
823
238
414
070
In te
rms o
f sec
tion
87 of
the A
dmin
istra
tion
of Es
tates
Act, N
o. 66
of 1
965,
ben
eficia
ry m
onies
rece
ived
in th
e Gua
rdian
’s Fu
nd sh
ould
be i
nves
ted
with
the P
IC. A
ll mon
ies ex
cept
for t
hose
requ
ired
for i
mm
ediat
e di
sbur
sem
ents
are i
nves
ted
with
the P
IC. T
he ca
rryin
g am
ount
of fin
ancia
l inve
stmen
ts ap
prox
imate
s the
ir fai
r valu
e.
PIC
Inve
stm
ents
10 6
26 4
38 5
745
164
201
389
2 40
5 81
0 34
71
291
890
982
735
967
962
790
153
822
238
414
071
Mon
ey M
arke
t 0 - 3
mon
ths
3 76
2 18
0 44
41
955
825
200
809
739
232
421
734
834
209
648
584
256
796
415
108
436
179
Mon
ey M
arke
t 3 - 6
mon
ths
2 16
8 26
3 77
11
053
611
490
505
080
206
325
151
884
132
494
430
127
042
078
24 8
83 6
84
Mon
ey M
arke
t 6 - 9
mon
ths
1 05
2 48
4 01
341
6 44
5 38
727
2 49
4 81
313
5 18
9 96
349
705
344
143
025
093
35 6
23 4
12
Mon
ey M
arke
t 9 - 1
2 m
onth
s3
643
510
345
1 73
8 31
9 31
181
8 49
6 09
640
9 81
4 30
234
4 11
9 60
426
3 29
0 23
669
470
796
23The Guardian’s Fund • Annual Report 2015/16 Financial Year
GUAR
DIAN
’S FU
ND
NOTE
S TO
THE
FINA
NCIA
L STA
TEM
ENTS
FOR
THE Y
EAR
ENDE
D 31
MAR
CH 2
016
Tota
lPr
etor
iaPi
eter
mar
itzbu
rgGr
aham
stow
nCa
pe To
wnBl
oem
font
ein
Kim
berle
yNa
t-Off
Inv
RR
RR
RR
RR
5.FI
NANC
IAL I
NSTR
UMEN
TS -
31/0
3/20
15
PIC
Inve
stmen
t
Open
ing
bala
nce
as a
t 1 A
pril
2014
9 07
8 95
1 79
84
263
606
533
2 13
5 15
2 58
71
111
301
089
628
025
802
733
671
818
207
193
969
Inve
stmen
t inc
ome r
eceiv
ed d
urin
g fin
ancia
l yea
r63
7 35
3 52
529
7 13
0 95
714
9 24
0 97
478
126
192
45 1
82 0
8852
150
129
15 5
23 1
86
Loss
es-4
734
855
-2 1
56 5
70-1
078
285
-1 5
00 0
00
Addi
tions
dur
ing
the y
ear
298
500
001
200
000
000
50 0
00 0
0024
000
000
10 0
00 0
003
500
000
11 0
00 0
00
Disp
osals
dur
ing
the y
ear
-68
500
000
-10
000
000
-16
500
000
-18
000
000
-4 0
00 0
00-1
8 00
0 00
0-2
000
000
Tradi
ng C
ash
Mov
emen
t-3
3 16
9 82
7-9
892
454
-23
000
646
-2 9
78 1
2925
3 41
05
926
894
-3 4
78 9
01
Man
agem
ent e
xpen
ses
-2 7
25 5
79-1
264
094
-641
795
-336
418
-194
181
-221
416
-67
675
Clos
ing
bala
nce
as p
er st
atem
ent
9 90
5 67
5 06
34
739
580
943
2 29
2 09
4 55
01
191
034
447
679
267
119
775
527
424
228
170
579
Prov
ision
for f
urth
er lo
ss on
ABIL
-2 1
54 2
11-1
615
500
-538
711
Clos
ing
Bala
nce
as a
t 31
Mar
ch 2
015
9 90
3 52
0 85
24
739
580
943
2 29
0 47
9 05
01
191
034
447
679
267
119
775
527
424
227
631
868
In te
rms o
f sec
tion
87 of
the A
dmin
istra
tion
of Es
tates
Act, N
o. 66
of 1
965,
ben
eficia
ry m
onies
rece
ived
in th
e Gua
rdian
’s Fu
nd sh
ould
be i
nves
ted
with
the P
IC. A
ll mon
ies ex
cept
for t
hose
requ
ired
for i
mm
ediat
e di
sbur
sem
ents
are i
nves
ted
with
the P
IC. T
he ca
rryin
g am
ount
of fin
ancia
l inve
stmen
ts ap
prox
imate
s the
ir fai
r valu
e.
PIC
Inve
stm
ents
9 90
5 67
5 06
34
739
580
942
2 29
2 09
4 55
01
191
034
447
679
267
119
775
527
425
228
170
579
Mon
ey M
arke
t 0 - 3
mon
ths
1 34
4 44
2 17
455
3 17
1 25
833
0 50
3 68
114
2 84
3 36
878
012
983
176
987
431
62 9
23 4
53
Mon
ey M
arke
t 3 - 6
mon
ths
1 33
5 07
2 88
379
2 17
1 56
127
7 53
9 12
712
7 59
0 82
997
569
127
35 0
06 9
105
195
329
Mon
ey M
arke
t 6 - 9
mon
ths
1 22
3 44
3 36
151
1 37
7 15
323
5 53
1 08
823
7 49
8 33
173
994
096
114
774
965
50 2
67 7
28
Mon
ey M
arke
t 9 - 1
2 m
onth
s6
002
716
644
2 88
2 86
0 97
11
448
520
654
683
101
918
429
690
913
448
758
119
109
784
069
24 The Guardian’s Fund • Annual Report 2015/16 Financial Year
GUAR
DIAN
’S FU
ND
NOTE
S TO
THE
FINA
NCIA
L STA
TEM
ENTS
FOR
THE Y
EAR
ENDE
D 31
MAR
CH 2
016
Tota
lPr
etor
iaPi
eter
mar
itzbu
rgGr
aham
stow
nCa
pe To
wnBl
oem
font
ein
Kim
berle
yNa
t-Off
Inv
RR
RR
RR
R
6.CA
SH A
ND C
ASH
EqUI
VALE
NTS -
31
/03/
2016
ABSA
ban
k acc
ount
90
110
181
27
985
268
19
733
223
7 3
72 7
64
17
134
559
15
249
204
2 6
35 1
63
PIC
main
and
rese
rve ac
coun
ts 1
9 70
4 52
3 1
9 70
4 52
3
Tradi
ng C
ash
- PIC
326
328
264
5
6 56
9 93
7 8
6 80
9 47
9 5
5 06
7 04
4 4
4 79
1 61
8 4
8 34
2 34
4 3
4 74
7 84
2
436
142
971
8
4 55
5 20
5 1
06 5
42 7
02
62
439
808
61
926
177
63
591
548
37
383
005
19
704
523
For t
he p
urpo
ses o
f the
cash
flow
stat
emen
t:
Disc
lose
d as
:
Cash
and
Cash
Equi
valen
ts 9
0 11
0 18
1 2
7 98
5 26
8 1
9 73
3 22
3 7
372
764
1
7 13
4 55
9 1
5 24
9 20
4 2
635
163
PIC
main
and
rese
rve ac
coun
ts 1
9 70
4 52
3 1
9 70
4 52
3
Tradi
ng C
ash
- PIC
326
328
264
5
6 56
9 93
7 8
6 80
9 47
9 5
5 06
7 04
4 4
4 79
1 61
8 4
8 34
2 34
4 3
4 74
7 84
2
Tota
l cas
h an
d ca
sh e
quiv
alen
ts 4
36 1
42 9
71
84
555
205
106
542
702
6
2 43
9 80
8 6
1 92
6 17
7 6
3 59
1 54
8 3
7 38
3 00
5 1
9 70
4 52
3
The c
arryi
ng am
ount
of ca
sh an
d ca
sh eq
uiva
lents
appr
oxim
ates t
heir
fair v
alue d
ue to
their
shor
t-ter
m m
aturit
y.
25The Guardian’s Fund • Annual Report 2015/16 Financial Year
GUAR
DIAN
’S FU
ND
NOTE
S TO
THE
FINA
NCIA
L STA
TEM
ENTS
FOR
THE Y
EAR
ENDE
D 31
MAR
CH 2
016
Tota
lPr
etor
iaPi
eter
mar
itzbu
rgGr
aham
stow
nCa
pe To
wnBl
oem
font
ein
Kim
berle
yNa
t-Off
Inv
RR
RR
RR
R
6.CA
SH A
ND C
ASH
EqUI
VALE
NTS -
31
/03/
2015
ABSA
ban
k acc
ount
73
064
332
20
951
041
16
948
955
15
649
094
7 1
38 5
50
11
078
209
1 2
98 4
83
PIC
main
and
rese
rve ac
coun
ts 1
8 60
5 37
7 1
8 60
5 37
7
Tradi
ng C
ash
- PIC
204
684
157
3
6 74
4 32
5 5
1 90
7 07
1 3
4 96
3 29
5 3
1 06
3 17
2 2
5 92
8 48
7 2
4 07
7 80
6
296
353
866
5
7 69
5 36
6 6
8 85
6 02
6 5
0 61
2 38
9 3
8 20
1 72
2 3
7 00
6 69
6 2
5 37
6 28
9 1
8 60
5 37
7
For t
he p
urpo
ses o
f the
cash
flow
stat
emen
t:
Disc
lose
d as
:
Cash
and
Cash
Equi
valen
ts 7
3 06
4 33
2 2
0 95
1 04
1 1
6 94
8 95
5 1
5 64
9 09
4 7
138
550
1
1 07
8 20
9 1
298
483
PIC
main
and
rese
rve ac
coun
ts 1
7 61
7 10
9 1
8 60
5 37
7
Tradi
ng C
ash
- PIC
204
684
157
3
6 74
4 32
5 5
1 90
7 07
1 3
4 96
3 29
5 3
1 06
3 17
2 2
5 92
8 48
7 2
4 07
7 80
6
Tota
l cas
h an
d ca
sh e
quiv
alen
ts 2
96 3
53 8
66
57
695
366
68
856
026
50
612
389
38
201
722
37
006
696
25
376
289
18
605
377
The c
arryi
ng am
ount
of ca
sh an
d ca
sh eq
uiva
lents
appr
oxim
ates t
heir
fair v
alue d
ue to
their
shor
t-ter
m m
aturit
y.
26 The Guardian’s Fund • Annual Report 2015/16 Financial Year
GUAR
DIAN
’S FU
ND
NOTE
S TO
THE
FINA
NCIA
L STA
TEM
ENTS
FOR
THE Y
EAR
ENDE
D 31
MAR
CH 2
016
Tota
lPr
etor
iaPi
eter
mar
itzbu
rgGr
aham
stow
nCa
pe To
wnBl
oem
font
ein
Kim
berle
yNa
t-Off
Inv
RR
RR
RR
R
7.OT
HER
RECE
IVAB
LES
- 31
/03/
2016
Absa
Inte
rest
rece
ivab
leTh
ese a
mou
nts r
elate
to in
ter-
est t
hat i
s rec
eivab
le fro
m Ab
sa
for t
he m
onth
of M
arch
201
6.
390
231
144
449
84 6
5827
488
44 5
0762
485
26 6
44
390
231
144
449
84 6
5827
488
44 5
0762
485
26 6
44
7.OT
HER
RECE
IVAB
LES
- 31
/03/
2015
Absa
Inte
rest
rece
ivab
leTh
ese a
mou
nts r
elate
to in
ter-
est t
hat i
s rec
eivab
le fro
m Ab
sa
for t
he m
onth
on M
arch
201
5.
255
527
90 3
4963
682
43 8
0419
814
32 3
505
530
255
527
90 3
4963
682
43 8
0419
814
32 3
505
530
27The Guardian’s Fund • Annual Report 2015/16 Financial Year
GUAR
DIAN
’S FU
ND
NOTE
S TO
THE
FINA
NCIA
L STA
TEM
ENTS
FOR
THE Y
EAR
ENDE
D 31
MAR
CH 2
016
Tota
lPr
etor
iaPi
eter
mar
itzbu
rgGr
aham
stow
nCa
pe To
wnBl
oem
font
ein
Kim
berle
yNa
t-Off
Inv
RR
RR
RR
RR
8.BE
NEFI
CIAR
Y LIA
BILI
TY - 3
1/03
/201
6
Open
ing
bala
nce
as a
t 1
April
201
59
359
808
888
4 28
4 73
0 89
62
202
907
726
1 22
4 10
4 90
660
6 98
8 68
979
2 66
1 83
224
8 41
4 83
9
Mon
ies re
ceive
d du
ring
finan
cial y
ear
1 48
6 09
4 33
569
8 21
9 69
529
5 87
6 57
721
9 89
5 33
510
1 42
9 26
911
9 24
9 61
351
423
848
Paym
ents
to B
enefi
ciarie
s-1
352
226
159
-594
902
441
-308
673
964
-196
568
061
-72
034
554
-133
861
836
-46
185
304
Trans
fer to
SARS
30
year
-3 2
72 4
26-1
906
072
-483
514
-274
169
-429
123
-161
114
-18
434
5% C
omm
issio
n pa
yabl
e to S
ARS
-41
104
-11
120
-10
450
-298
-16
815
-2 4
21
Inte
rest
paid
to b
enefi
ciarie
s61
3 06
6 87
527
8 36
8 83
014
4 24
8 82
284
775
252
32 5
87 0
3755
582
230
17 5
04 7
03
Clos
ing
bala
nce
as a
t 31
Mar
ch 2
016
10 1
03 4
30 4
094
664
499
787
2 33
3 86
5 19
71
331
932
965
668
524
503
833
468
304
271
139
653
8.Be
nefic
iary
Liab
ility
Inter
est B
earin
g Ben
eficia
ry m
onies
9 1
51 1
97 3
78
4 1
42 6
55 8
29
2 1
96 1
91 4
94
1 2
65 2
37 1
34
495
406
536
7
94 2
36 3
42
257
470
043
Non-
Inter
est B
earin
g Ben
eficia
ry M
onies
(N
o Com
miss
ion)
659
040
229
3
47 7
25 9
76
111
718
616
5
8 25
9 17
3 1
03 3
48 6
58
26
858
838
11
128
967
Non-
Inte
rest
Bear
ing
Bene
ficiar
y Mon
ies
(Com
miss
ion)
252
902
967
1
60 8
32 4
06
20
424
331
7 8
75 6
12
57
413
941
5 1
30 5
57
1 2
26 1
20
Unall
ocate
d Be
nefic
iary M
onies
(Sus
pens
e ac
coun
t) 3
9 93
2 47
7 1
3 30
9 51
7 5
401
691
5
02 7
88
12
350
645
7 0
57 9
77
1 3
09 8
59
Bene
ficiar
y mon
ies - A
lloca
tion
acco
unt
(refer
to n
ote 1
5) -2
49 3
76
-496
213
-6
213
6
2 67
6 -4
53
195
191
-4
365
Accru
ed B
enefi
ciary
Liabi
lity
606
733
4
72 2
73
135
279
-4
420
5
176
-1
0 60
3 9
028
Clos
ing
bala
nce
as a
t 31
Mar
ch 2
016
10
103
430
409
4 6
64 4
99 7
87
2 3
33 8
65 1
97
1 3
31 9
32 9
65
668
524
503
8
33 4
68 3
04
271
139
653
28 The Guardian’s Fund • Annual Report 2015/16 Financial Year
GUAR
DIAN
’S FU
ND
NOTE
S TO
THE
FINA
NCIA
L STA
TEM
ENTS
FOR
THE Y
EAR
ENDE
D 31
MAR
CH 2
016
Tota
lPr
etor
iaPi
eter
mar
itzbu
rgGr
aham
stow
nCa
pe To
wnBl
oem
font
ein
Kim
berle
yNa
t-Off
Inv
RR
RR
RR
RR
8.BE
NEFI
CIAR
Y LI
ABIL
ITY
- 31/
03/2
015
Open
ing
bala
nce
as a
t 1 A
pril
2014
8 5
82 5
59 6
89
3 8
39 7
67 6
23
2 0
57 8
59 1
62
1 1
31 0
66 9
38
570
822
057
7
55 6
86 3
05
227
357
603
Mon
ies re
ceive
d dur
ing fin
ancia
l yea
r 1
318
742
117
6
32 1
84 9
93
274
040
044
1
92 6
39 2
22
80
549
321
98
948
044
40
380
493
Paym
ents
to B
enefi
ciarie
s -1
105
317
654
-4
37 6
47 8
89
-267
662
031
-1
76 9
18 6
31
-73
661
398
-114
033
782
-3
5 39
3 92
3
Trans
fer t
o SA
RS 3
0 ye
ar -5
848
526
-2
436
784
-9
66 8
41
-294
604
-1
235
091
-8
95 2
00
-20
006
Prio
r yea
r adj
ustm
ents
3 4
84 6
72
1 6
31 7
46
569
881
4
08 3
52
767
119
1
08 5
86
-1 0
12
5% C
omm
issio
n pa
yabl
e to S
ARS
-24
229
-17
607
-3 3
37
-3 2
85
Inte
rest
paid
to b
enefi
ciarie
s 5
66 2
12 8
18
251
248
813
1
39 0
67 5
11
77
203
628
29
750
019
52
851
164
16
091
683
Clos
ing
bala
nce
as a
t 31
Mar
ch 2
015
9 3
59 8
08 8
88
4 2
84 7
30 8
96
2 2
02 9
07 7
26
1 2
24 1
04 9
06
606
988
689
7
92 6
61 8
32
248
414
839
8.Be
nefic
iary
Liab
ility
Inte
rest
Bear
ing
Bene
ficia
ry m
onie
s 8
481
721
110
3
816
103
402
2
065
468
055
1
157
572
341
4
50 4
54 3
51
752
332
835
2
39 7
90 1
25
Non-
Inter
est B
earin
g Ben
eficia
ry M
onies
(N
o Com
miss
ion)
598
387
575
2
97 7
85 8
90
109
339
011
5
7 91
0 43
5 1
02 3
83 8
29
24
064
569
6 9
03 8
40
Non-
Inte
rest
Bear
ing
Bene
ficiar
y Mon
ies
(Com
miss
ion)
245
619
302
1
58 6
58 2
00
19
680
471
7 8
15 1
78
53
196
079
5 0
42 7
32
1 2
26 6
40
Unall
ocate
d Be
nefic
iary M
onies
(S
uspe
nse a
ccou
nt)
34
074
709
12
513
803
8 3
59 3
56
701
565
9
60 0
39
11
055
130
484
816
Bene
ficiar
y mon
ies - A
lloca
tion
acco
unt
(refer
to n
ote 1
5) -2
80 9
81
-399
482
-5
0 98
2 5
3 97
6 -4
53
120
326
-4
365
Accru
ed B
enefi
ciary
Liabi
lity
287
173
6
9 08
3 1
11 8
15
51
410
-5 1
57
46
240
13
782
Clos
ing
bala
nce
as a
t 31
Mar
ch 2
015
9 3
59 8
08 8
88
4 2
84 7
30 8
96
2 2
02 9
07 7
26
1 2
24 1
04 9
06
606
988
689
7
92 6
61 8
32
248
414
839
29The Guardian’s Fund • Annual Report 2015/16 Financial Year
GUAR
DIAN
’S FU
ND
NOTE
S TO
THE
FINA
NCIA
L STA
TEM
ENTS
FOR
THE Y
EAR
ENDE
D 31
MAR
CH 2
016
Tota
lPr
etor
iaPi
eter
mar
itzbu
rgGr
aham
stow
nCa
pe To
wnBl
oem
font
ein
Kim
berle
yNa
t-Off
Inv
RR
RR
RR
RR
9.TR
ADE A
ND O
THER
PAY
ABLE
S - 3
1/03
/201
6
SARS
pay
able
Open
ing
bala
nce
as a
t 1 A
pril
2015
5 2
89 0
43
6 2
86 2
78
-2 8
90 7
66
20
822
1 3
14 4
12
439
762
1
18 5
38
5% co
mm
issio
n 4
1 10
4 1
1 12
0 1
0 45
0 2
98
16
815
2 4
21
SARS
adju
stmen
t -4
15 1
13
-415
113
30 ye
ar - B
enefi
ciary
mon
ies 3
272
426
1
906
072
4
83 5
14
274
169
4
29 1
23
161
114
1
8 43
4
8 1
87 4
63
8 2
03 4
70
-2 3
96 8
02
295
289
1
760
350
1
88 1
84
136
972
Less
: SAR
S lia
bilit
y paid
dur
ing
finan
cial y
ear
-4 7
44 5
78
-2 4
54 3
90
-634
386
-6
4 30
0 -1
238
428
-3
33 0
66
-20
006
Clos
ing
Bala
nce
as a
t 31
Mar
ch 2
016
3 4
42 8
86
5 7
49 0
79
-3 0
31 1
88
230
989
5
21 9
22
-144
882
1
16 9
66
9.TR
ADE A
ND O
THER
PAY
ABLE
S - 3
1/03
/201
5
SARS
pay
able
Open
ing
bala
nce
as a
t 1 A
pril
2014
6 8
76 4
14
7 7
65 2
58
-2 5
95 9
40
158
305
1
541
622
-1
32 3
06
139
475
5% co
mm
issio
n 2
4 22
9 1
7 60
7 3
337
3
285
30 ye
ar - B
enefi
ciary
mon
ies 5
848
526
2
436
784
9
66 8
41
294
604
1
235
091
8
95 2
00
20
006
Prio
r yea
r SAR
S ad
justm
ents
-1 8
86 9
13
-442
869
-2
95 5
66
-286
443
-7
14 8
38
-147
197
10
862
255
9 7
76 7
79
-1 9
24 6
65
166
465
2
065
212
6
18 9
83
159
481
Less
: SAR
S lia
bilit
y paid
dur
ing
finan
cial y
ear
-5 5
73 2
12
-3 4
90 5
02
-966
101
-1
45 6
44
-750
800
-1
79 2
21
-40
944
Clos
ing
Bala
nce
as a
t 31
Mar
ch 2
015
5 2
89 0
43
6 2
86 2
77
-2 8
90 7
66
20
822
1 3
14 4
12
439
762
1
18 5
38
Thes
e pay
ables
relat
e to m
onies
whi
ch h
ave r
emain
ed u
nclai
med
for a
per
iod
of th
irty y
ears
as fr
om th
e date
upo
n wh
ich th
e ben
eficia
ries b
ecam
e ent
itled
to th
e said
m
onies
, as w
ell as
a 5%
adm
in fe
e tha
t is d
educ
ted
from
all in
solve
nt or
liqui
date
d es
tates
whe
reby
cred
itor p
aym
ent a
re n
eede
d to
be m
ade.
The s
aid m
onies
are f
orfei
ted
to th
e stat
e and
pay
men
t is m
ade f
rom
the G
uard
ian’s
Fund
to th
e Nati
onal
Reve
nue F
und
via th
e Dep
artm
ent o
f Jus
tice V
ote A
ccou
nt.
30 The Guardian’s Fund • Annual Report 2015/16 Financial Year
GUAR
DIAN
’S FU
NDNO
TES
TO TH
E FI
NANC
IAL S
TATE
MEN
TS FO
R TH
E YEA
R EN
DED
31 M
ARCH
201
6
Tota
lPr
etor
iaPi
eter
mar
itzbu
rgGr
aham
stow
nCa
pe To
wnBl
oem
font
ein
Kim
berle
yNa
t-Off
Inv
RR
RR
RR
RR
10.
ACCU
MUL
ATED
SUR
PLUS
/(D
EFIC
IT) -
31/
03/2
016
Open
ing
bala
nce
as a
t 1
April
201
5 -8
35 0
32 3
15
-506
349
482
-1
60 9
97 2
95
-17
564
914
-109
185
557
-1
9 46
4 87
9 -5
019
023
-1
8 60
5 37
6
Surp
lus fo
r the y
ear
-121
066
166
-7
2 30
2 69
4-2
2 22
1 89
9-4
629
414
-19
706
666
-1 0
19 5
55-8
6 79
2-1
099
146
Bala
nce
as at
31
Mar
ch 2
016
-956
098
481
-5
78 6
52 1
75
-183
219
194
-2
2 19
4 32
8 -1
28 8
92 2
23
-20
484
434
-5 1
05 8
15
-19
704
522
10.
ACCU
MUL
ATED
SUR
PLUS
/(D
EFIC
IT) -
31/
03/2
015
Open
ing
bala
nce
as a
t 1
April
201
4 -7
69 0
85 9
66
-460
633
378
-1
52 3
88 7
20
-17
797
018
-93
728
910
-21
373
392
-5 5
47 4
39
-17
617
109
Surp
lus fo
r the y
ear
-65
946
349
-45
716
104
-6 9
93 0
76
232
105
-1
5 45
6 64
7 1
908
513
1
067
127
-9
88 2
67
Bala
nce
as at
31
Mar
ch 2
015
-835
032
315
-5
06 3
49 4
82
-160
997
295
-1
7 56
4 91
4 -1
09 1
85 5
57
-19
464
879
-5 0
19 0
23
-18
605
376
31The Guardian’s Fund • Annual Report 2015/16 Financial Year
GUAR
DIAN
’S FU
NDNO
TES
TO TH
E FI
NANC
IAL S
TATE
MEN
TS FO
R TH
E YEA
R EN
DED
31 M
ARCH
201
6
Tota
lPr
etor
iaPi
eter
mar
itzbu
rgGr
aham
stow
nCa
pe To
wnBl
oem
font
ein
Kim
berle
yNa
t-Off
Inv
RR
RR
RR
RR
11.
MAN
AGEM
ENT F
EES
- 31
/03/
2016
Inve
stmen
t Man
agem
ent F
ees -
PIC
Inve
stmen
t
3 0
03 9
67
1 4
24 2
30
684
245
3
67 5
75
213
331
2
34 6
73
74
445
5 4
67
Fees
are p
ayab
le to
The P
ublic
Inve
stmen
t Cor
pora
tion
Limite
d
for m
anag
ing
the G
uard
ian’s
Fund
inve
stmen
ts in
term
s of
the I
nves
tmen
t man
agem
ent
agre
emen
t.
3 0
03 9
67
1 4
24 2
30
684
245
3
67 5
75
213
331
2
34 6
73
74
445
5 4
67
11.
MAN
AGEM
ENT F
EES
- 31
/03/
2015
Inve
stmen
t Man
agem
ent F
ees -
PI
C In
vestm
ent
2 7
30 7
34
1 2
64 0
94
641
795
3
36 4
18
194
181
2
21 4
16
67
675
5 1
56
Fees
are p
ayab
le to
The P
ublic
In
vestm
ent C
orpo
ratio
n Lim
ited
for m
anag
ing
the G
uard
ian’s
Fund
inve
stmen
ts in
term
s of
the I
nves
tmen
t man
agem
ent
agre
emen
t.
2 7
30 7
34
1 2
64 0
94
641
795
3
36 4
18
194
181
2
21 4
16
67
675
5 1
56
32 The Guardian’s Fund • Annual Report 2015/16 Financial Year
GUAR
DIAN
’S FU
NDNO
TES
TO TH
E FI
NANC
IAL S
TATE
MEN
TS FO
R TH
E YEA
R EN
DED
31 M
ARCH
201
6
12.
RELA
TED
PART
Y TRA
NSAC
TION
S - 3
1/03
/201
6
Nam
e of
rela
ted
party
:De
partm
ent o
f Jus
tice a
nd C
onsti
tutio
nal D
evelo
pmen
t.
Rela
tions
hip:
Depa
rtmen
t und
er co
mm
on M
inist
ry. Al
l adm
inist
ratio
n co
sts of
the G
uard
ian’s
Fund
are p
aid fo
r by t
he D
epar
tmen
t of J
ustic
ean
d Co
nstit
utio
nal D
evelo
pmen
t.
Tota
l adm
inist
ratio
n co
sts (
sala
ries)
disc
lose
d as
:77
395
588
Offic
e of t
he C
hief
Mas
ter
71 2
59 5
09
Offic
e of t
he C
FO6
136
079
Key p
erso
nnel
cost
s disc
lose
d as
:13
242
619
Leve
l 15
- Chi
ef M
aste
r/Chi
ef Fi
nanc
ial O
ffice
r (2)
2 94
1 26
9
Leve
l 14
- Chi
ef D
irecto
r (3)
3 64
2 34
8
Leve
l 13
- Dire
ctors
(1) a
nd M
aste
rs (6
)6
659
002
Nam
e of
rela
ted
party
:Th
e Pub
lic In
vestm
ent C
orpo
ratio
n Lim
ited
Rela
tions
hip:
In te
rms o
f sec
tion
87 of
the A
dmin
istra
tion
of Es
tates
Act, N
o. 66
of 1
965,
ben
eficia
ry m
onies
rece
ived
in th
e Gua
rdian
’s Fu
nd sh
ould
be i
nves
ted
with
the P
IC. D
etail
s of t
rans
actio
n va
lues
as st
ated
in N
otes
3, 5
& 1
1.
Nam
e of
rela
ted
party
:Th
e Pre
siden
ts Fu
nd/Th
ird Pa
rty Fu
nds/
Natio
nal P
rose
cutin
g Aut
horit
y/Sp
ecial
Inve
stiga
tion
Unit/
Lega
l Aid
Boa
rd/C
rimin
al As
set R
ecov
ery A
ccou
nt
Rela
tions
hip:
All p
artie
s abo
ve ar
e und
er th
e com
mon
cont
rol o
f the
Dep
artm
ent o
f Jus
tice a
nd C
onsti
tutio
nal D
evelo
pmen
t, but
ther
e is n
o flow
of tr
ansa
ction
s bet
ween
thes
e par
ties a
nd th
e Gu
ardi
an’s
Fund
.
33The Guardian’s Fund • Annual Report 2015/16 Financial Year
GUAR
DIAN
’S FU
NDNO
TES
TO TH
E FI
NANC
IAL S
TATE
MEN
TS FO
R TH
E YEA
R EN
DED
31 M
ARCH
201
6
12.
RELA
TED
PART
Y TRA
NSAC
TION
S - 3
1/03
/201
5
Nam
e of
rela
ted
party
:De
partm
ent o
f Jus
tice a
nd C
onsti
tutio
nal D
evelo
pmen
t.
Rela
tions
hip:
Depa
rtmen
t und
er co
mm
on M
inist
ry. Al
l adm
inist
ratio
n co
sts of
the G
uard
ian’s
Fund
are p
aid fo
r by t
he D
epar
tmen
t of J
ustic
e and
Con
stitu
tiona
l Dev
elopm
ent.
Tota
l adm
inist
ratio
n co
sts (
sala
ries)
disc
lose
d as
:68
865
076
Offic
e of t
he C
hief
Mas
ter
62 9
31 4
90
Offic
e of t
he C
FO5
933
586
Key p
erso
nnel
cost
s disc
lose
d as
:13
229
526
Leve
l 15
- Chi
ef M
aste
r/Chi
ef Fi
nanc
ial O
ffice
r (2)
2 79
0 51
3
Leve
l 14
- Chi
ef D
irecto
r (3)
3 71
6 29
9
Leve
l 13
- Dire
ctors
(1) a
nd M
aste
rs (6
)6
722
714
Nam
e of
rela
ted
party
:Th
e Pub
lic In
vestm
ent C
orpo
ratio
n Lim
ited
Rela
tions
hip:
In te
rms o
f sec
tion
87 of
the A
dmin
istra
tion
of Es
tates
Act, N
o. 66
of 1
965,
ben
eficia
ry m
onies
rece
ived
in th
e Gua
rdian
’s Fu
nd sh
ould
be i
nves
ted
with
the P
IC. D
etail
s of t
rans
actio
n va
lues
as st
ated
in N
otes
3, 5
& 1
1.
Nam
e of
rela
ted
party
:Th
e Pre
siden
ts Fu
nd/Th
ird Pa
rty Fu
nds/
Natio
nal P
rose
cutin
g Aut
horit
y/Sp
ecial
Inve
stiga
tion
Unit/
Lega
l Aid
Boa
rd/C
rimin
al As
set R
ecov
ery A
ccou
nt
Rela
tions
hip:
All p
artie
s abo
ve ar
e und
er th
e com
mon
cont
rol o
f the
Dep
artm
ent o
f Jus
tice a
nd C
onsti
tutio
nal D
evelo
pmen
t, but
ther
e is n
o flow
of tr
ansa
ction
s bet
ween
thes
e par
ties a
nd th
e Gu
ardi
an’s
Fund
.
34 The Guardian’s Fund • Annual Report 2015/16 Financial Year
GUAR
DIAN
’S FU
NDNO
TES
TO TH
E FI
NANC
IAL S
TATE
MEN
TS FO
R TH
E YEA
R EN
DED
31 M
ARCH
201
6
Tota
lPr
etor
iaPi
eter
mar
itzbu
rgGr
aham
stow
nCa
pe To
wnBl
oem
font
ein
Kim
berle
yNa
t-Off
Inv
RR
RR
RR
RR
13.
CASH
GEN
ERAT
ED F
ROM
/(UTI
LIzE
D IN
) OP
ERAT
IONS
- 31
/03/
2016
Surp
lus/
(defi
cit) b
efore
inte
rest
Plus
: SAR
S pa
id 4
744
578
2
454
390
6
34 3
86
64
300
1 2
38 4
28
333
066
2
0 00
6
Less
: Inv
estm
ent in
com
e rec
eived
-735
642
162
-3
51 9
51 3
04
-167
070
308
-8
9 74
4 75
3 -5
2 46
2 52
7 -5
6 77
3 97
3 -1
7 63
9 29
7
Plus
: Int
eres
t paid
613
066
875
2
78 3
68 8
30
144
248
822
8
4 77
5 25
2 3
2 58
7 03
7 5
5 58
2 23
0 1
7 50
4 70
3
Net c
ash
flows
from
ope
ratin
g ac
tiviti
es -1
17 8
30 7
09
-71
535
595
-22
310
863
-4 9
05 2
01
-18
637
061
-858
677
-1
14 5
88
13.
CASH
GEN
ERAT
ED FR
OM/(U
TILI
zED
IN)
OPER
ATIO
NS -
31/0
3/20
15
Surp
lus/
(defi
cit) b
efore
inte
rest
Plus
: SAR
S pa
id 5
573
212
3
490
502
9
66 1
01
145
644
7
50 8
00
179
221
4
0 94
4
Less
: Inv
estm
ent in
com
e rec
eived
-640
747
723
-2
98 2
00 9
75
-150
441
629
-7
8 48
4 66
7 -4
5 40
0 85
4 -5
2 59
5 19
6 -1
5 62
4 40
0
Plus
: Int
eres
t paid
566
430
525
2
51 3
11 1
25
139
098
371
7
7 34
5 87
3 2
9 76
9 84
1 5
2 81
4 64
3 1
6 09
0 67
1
Net c
ash
flows
from
ope
ratin
g ac
tiviti
es -6
8 74
3 98
5 -4
3 39
9 34
8 -1
0 37
7 15
7 -9
93 1
50
-14
880
213
398
668
5
07 2
15
35The Guardian’s Fund • Annual Report 2015/16 Financial Year
GUAR
DIAN
’S FU
NDNO
TES
TO TH
E FI
NANC
IAL S
TATE
MEN
TS FO
R TH
E YEA
R EN
DED
31 M
ARCH
201
6
Tota
lPr
etor
iaPi
eter
mar
itzbu
rgGr
aham
stow
nCa
pe To
wnBl
oem
font
ein
Kim
berle
yNa
t-Off
Inv
RR
RR
RR
RR
14.
DISA
LLOW
ANCE
ACC
OUNT
(FRA
UD
AND
LOSS
ES) -
31/
03/2
016
Open
ing
Bala
nce
at a
t 1 A
pril
2015
9 1
66 0
51
6 3
50 0
80
811
688
3
54 4
46
239
925
1
361
593
4
8 31
9
Curre
nt ye
ar fr
aud
case
s 1
158
251
4
50 4
21
707
830
Curre
nt ye
ar lo
sses
6
389
130
6
158
121
1
75 1
19
44
534
161
7
449
3
746
Finali
sed
case
s - In
vesti
gatio
n fin
alise
d -8
896
965
-6
545
997
-6
74 9
19
-155
806
-1
497
050
-2
3 19
2
Case
s stil
l und
er in
vest
igat
ion
as a
t 31
Mar
ch 2
016
7 8
16 4
66
5 9
62 2
03
986
807
-2
75 9
40
84
280
322
414
7
36 7
02
14.
DISA
LLOW
ANCE
ACC
OUNT
(FRA
UD
AND
LOSS
ES) -
31/
03/2
015
Open
ing
Bala
nce
at a
t 1 A
pril
2014
7 1
90 8
99
3 5
67 7
93
1 9
63 8
25
76
993
221
923
1
339
766
2
0 59
9
Resta
tem
ent m
ovem
ent
1 4
53 3
15
1 7
88 0
60
-334
745
Curre
nt ye
ar fr
aud
case
s 1
484
017
6
78 9
27
684
117
9
5 97
3 2
5 00
0
Curre
nt ye
ar lo
sses
1
472
550
3
15 2
99
597
205
2
77 4
53
18
003
261
870
2
719
Finali
sed
case
s - In
vesti
gatio
n fin
alise
d -2
434
731
-2
433
459
-1
272
Case
s stil
l und
er in
vest
igat
ion
as a
t 31
Mar
ch 2
015
9 1
66 0
51
6 3
50 0
80
811
688
3
54 4
46
239
925
1
361
593
4
8 31
9
36 The Guardian’s Fund • Annual Report 2015/16 Financial Year
GUAR
DIAN
’S FU
NDNO
TES
TO TH
E FI
NANC
IAL S
TATE
MEN
TS FO
R TH
E YEA
R EN
DED
31 M
ARCH
201
6
Tota
lPr
etor
iaPi
eter
mar
itzbu
rgGr
aham
stow
nCa
pe To
wnBl
oem
font
ein
Kim
berle
yNa
t-Off
Inv
RR
RR
RR
RR
15.
BENE
FICI
ARY
MON
IES
- ALL
OCAT
ION
ACCO
UNT -
31/
03/2
016
Bala
nce
as a
t 31
Mar
ch 2
016
-249
376
-4
96 2
13
-6 2
13
62
676
-453
1
95 1
91
-4 3
65
-249
376
-4
96 2
13
-6 2
13
62
676
-453
1
95 1
91
-4 3
65
15.
BENE
FICI
ARY
MON
IES
- ALL
OCAT
ION
ACCO
UNT -
31/
03/2
015
Bala
nce
as a
t 31
Mar
ch 2
015
Thes
e tra
nsac
tions
orig
inate
from
year
di
ffere
nces
bet
ween
the G
uard
ians F
und
Syste
m an
d th
e cas
h bo
ok w
hich
will
be
adju
sted
thro
ugh
a con
trolle
d m
onito
red
RFS
Proc
ess.
-280
981
-3
99 4
82
-50
982
53
976
-453
1
20 3
26
-4 3
65
-280
981
-3
99 4
82
-50
982
53
976
-453
1
20 3
26
-4 3
65
37The Guardian’s Fund • Annual Report 2015/16 Financial Year
GUAR
DIAN
’S FU
NDNO
TES
TO TH
E FI
NANC
IAL S
TATE
MEN
TS FO
R TH
E YEA
R EN
DED
31 M
ARCH
201
6
Tota
lPr
etor
iaPi
eter
mar
itzbu
rgGr
aham
stow
nCa
pe To
wnBl
oem
font
ein
Kim
berle
yNa
t-Off
Inv
RR
RR
RR
RR
16.
LOSS
ES: F
INAN
CIAL
INST
RUM
ENTS
Bala
nce
as a
t 31
Mar
ch 2
015
-6 8
89 0
66
-3 7
72 0
70
-1 0
78 2
85
-1 5
00 0
00
-538
711
Thes
e los
ses r
elate
to th
e eco
nom
ic sit
uatio
n wi
th Af
rican
Ban
kLim
ited,
wher
e the
JSE I
nstru
ction
was
a 1
0% h
aircu
t on
all in
strum
ents.
Refer
to N
ote 5
: Fin
ancia
l Instr
umen
ts -6
889
066
-3
772
070
-1
078
285
-1
500
000
-5
38 7
11
38 The Guardian’s Fund • Annual Report 2015/16 Financial Year
GUAR
DIAN
’S FU
NDNO
TES
TO TH
E FI
NANC
IAL S
TATE
MEN
TS FO
R TH
E YEA
R EN
DED
31 M
ARCH
201
6
As d
iscl
osed
in 2
015
As re
stat
ed in
20
16Pr
ior p
erio
d er
rors
fo
r the
fina
ncia
l yea
rs
endi
ng 3
1 M
arch
20
15
Pre-
prio
r per
iod
erro
r for
the
finan
cial
yea
r end
ing
31
Mar
ch 2
006
to
31 M
arch
201
4
Natu
re o
f res
tate
men
t
2015
/03/
31R
RR
R
17RE
STAT
EMEN
T OF
COM
PARA
TIVE
S
The
finan
cial s
tate
men
ts fo
r 31
Mar
ch 2
015
wer
e re
state
d d
ue t
o m
ore a
ccur
ate
finan
cial
info
rmat
ion b
ecom
ing
avail
able
and
as h
istor
ical
issue
s wer
e add
ress
ed.
17.1
REST
ATEM
ENT O
F FI
NANC
IAL P
OSIT
ION
ASSE
TS
Finan
cial in
vestm
ents
avail
able-
for-s
ale (P
IC
inve
stmen
ts)9
905
675
063
9 90
3 52
0 85
2-2
154
211
Raise
d pr
ovisi
on fo
r los
s on
PIC
- ABI
L
Cash
and
cash
equi
valen
ts29
6 35
9 96
929
6 35
3 86
6-6
103
Bank
adj
ustm
ents
- cas
hboo
k re
state
d
Othe
r rec
eivab
les -
ABSA
Inte
rest
255
528
255
528
Tota
l ass
ets
10 2
02 2
90 5
6010
200
130
246
-2 1
60 3
14
LIAB
ILIT
IES
Tota
l lia
bilit
ies
9 36
3 50
0 16
49
365
097
931
211
635
1 38
6 13
2
Bene
ficiar
y Liab
ility
9 35
6 32
4 20
79
359
808
888
- Res
tate
men
t of I
nter
est a
nd C
apita
l adj
ustm
ents
217
707
1 38
6 13
2Pr
ior Y
ear
adju
stmen
ts d
ue t
o R
FS
data
cha
nges
sub
mitt
ed b
y GF
Of
fices
SARS
Adj
ustm
ent
1 63
5 82
325
1 09
1Re
versa
l of 2
014
SARS
Tran
sfers
Bank
adj
ustm
ents
affec
t ben
eficia
ry lia
bilit
ies-6
072
Bank
adj
ustm
ents
affec
ting
liabi
lity
Othe
r Pay
ables
7 17
5 95
75
289
043
-1 6
35 8
23-2
51 0
91Re
versa
l of p
revio
us ye
ars S
ARS
Trans
fers
39The Guardian’s Fund • Annual Report 2015/16 Financial Year
GUAR
DIAN
’S FU
NDNO
TES
TO TH
E FI
NANC
IAL S
TATE
MEN
TS FO
R TH
E YEA
R EN
DED
31 M
ARCH
201
6
As d
iscl
osed
in 2
015
As re
stat
ed in
20
16Pr
ior p
erio
d er
rors
fo
r the
fina
ncia
l yea
rs
endi
ng 3
1 M
arch
20
15
Pre-
prio
r per
iod
erro
r for
th
e fin
anci
al y
ear e
ndin
g 31
M
arch
200
6 to
31
Mar
ch 2
014
Natu
re o
f res
tate
men
t
RR
RR
17.1
REST
ATEM
ENT
OF F
INAN
CIAL
POS
ITIO
N -
CONT
INUE
S
CAPI
TAL A
ND R
ESER
VES
Tota
l lia
bilit
ies
9 36
3 50
0 16
49
365
097
931
211
635
1 38
6 13
2
Tota
l net
ass
ets
838
790
396
835
032
315
-2 3
71 9
49-1
386
132
Accu
mul
ated
surp
lus/
(defi
cit)
838
790
396
835
032
315
- Prio
r Yea
r adj
ustm
ents
-217
707
-1 3
86 1
32Pr
ior Y
ear
adju
stmen
ts d
ue t
o R
FS
data
cha
nges
sub
mitt
ed b
y GF
Of
fices
- Ban
k Adj
ustm
ent
-31
Bank
Adj
ustm
ents
affec
ted
thro
ugh
Inco
me
- Rais
ed p
rovis
ion
for l
oss P
IC :
ABIL
-2 1
54 2
11Ra
ised
prov
ision
for l
oss o
n PI
C - A
BIL
Tota
l net
ass
ets a
nd li
abili
ties
10 2
02 2
90 5
6010
200
130
246
-2 1
60 3
14
40 The Guardian’s Fund • Annual Report 2015/16 Financial Year
GUAR
DIAN
’S FU
NDNO
TES
TO TH
E FI
NANC
IAL S
TATE
MEN
TS FO
R TH
E YEA
R EN
DED
31 M
ARCH
201
6
As d
iscl
osed
in 2
015
As re
stat
ed in
20
16Pr
ior p
erio
d er
rors
fo
r the
fina
ncia
l yea
rs
endi
ng 3
1 M
arch
20
15
Pre-
prio
r per
iod
erro
r for
th
e fin
anci
al y
ear e
ndin
g 31
M
arch
200
6 to
31
Mar
ch 2
014
Natu
re o
f res
tate
men
t
RR
RR
17.2
REST
ATEM
ENT
OF P
ERFO
RMAN
CE
Reve
nue
Inve
stmen
t rev
enue
641
996
706
641
996
675
-31
Bank
Adj
ustm
ents
affec
ting
Inco
me
Less
: Exp
endi
ture
573
678
408
576
050
326
-2 3
71 9
18
Man
agem
ent f
ees
2 73
0 73
52
730
735
Loss
es :
Finan
cial I
nstru
men
ts4
734
855
6 88
9 06
6-2
154
211
Raise
d pr
ovisi
on fo
r los
s on
PIC
- ABI
L
Inte
rest
paid
to b
enefi
ciarie
s56
6 21
2 81
856
6 43
0 52
5-2
17 7
07In
creas
e in
in
tere
st p
ayab
le t
o
bene
ficiar
ies d
ue
to
decre
ase
of
bene
ficiar
y liab
ility a
t 31
Mar
ch 2
015
Surp
lus/
(defi
cit) f
or th
e ye
ar68
318
298
65 9
46 3
49-2
371
949
41The Guardian’s Fund • Annual Report 2015/16 Financial Year
18. RISK MANAGEMENT
18.1 Introduction
As a client of the PIC, the Guardian’s Fund specifies its desirable risk parameters in accordance with its own risk appetite. This risk appetite informs the formal investment mandate given to the PIC. The mandate consciously promotes a responsible approach to risk to ensure the long term sustainability of the Fund and to protect the reputation of the Fund. The ultimate responsibility for investment risk management oversight lies with the PIC and not with the Guardian’s Fund.
18.2 Market risk
Market risk is the exposure to adverse change in the market value of our investment position caused by changes in prices and rates. The Fund’s activities expose it primarily to the risks of fluctuations in the interest rate.
Interest rate risk refers to the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
Market risk exposures are measured using sensitivity analysis. A sensitivity analysis shows how net surplus and/or net assets would have been affected by changes in the relevant risk variable that were reasonably possible at the reporting date.
The GF was exposed to market risk in relation to the economic position of African Bank Limited, which resulted in Impairment losses (See Notes[5]). However, due to the GF managing Market and Concentration Risk, this did not have a significant impact on the GF, as displayed by the healthy profit gained in 2015 and 2016 (See Statement of Financial Performance).
18.3 Interest rate risk
This risk is the potential financial loss as a result of adverse movements in interest rates that affect the value of money market instruments. As a PIC client, Guardian’s Fund has exposure to interest rate risk through investments in money markets.
Sensitivity to interest rate movements is measured by the duration of the fixed interest exposure. Such duration is dictated in the Guardian’s Fund client investment mandate to PIC, relative to the appropriate benchmark.
Furthermore, these investment mandates prescribe how the assets should be managed by PIC, in line with Guardian’s Fund liquidity needs and its liability profile.
18.4 Interest rate risk sensitivity analysis
The sensitivity analysis below has been determined based upon financial instruments exposure to interest rates at the Statement of Financial position date.
The basis points increase or decrease, as detailed in the table below, were determined by management and represent management’s assessment of a reasonable change in interests rates. The positive number indicates an increase in net surplus and a negative number indicates a decrease in net surplus.
There is no change in the methods and assumptions used in preparing the sensitivity analysis from one year to the next. In the graph, the zero interest rate represents the base - as disclosed in the Audited Financial Statements.
42 The Guardian’s Fund • Annual Report 2015/16 Financial Year
Interest rate sensitivity analysis
The above sensitivity analysis shows that even with a 2% change (both ways) in the interest rate, the Guardian’s Fund would have earned sufficient interest investment income to cover the interest paid to fund beneficiaries at the gazetted rate of interest. (Base figures are as follows: Interest received - R737 million and Interest paid - R612 million).
18.5 Credit risk
Guardian’s Fund investment portfolios are exposed to the potential for credit-related losses that can result due to an individual, counterparty or issuer being unable or unwilling to honour contractual obligations.
To mitigate this risk, and minimize excessive credit exposure to one single counterparty, the Guardian’s Fund mandate to PIC states that PIC will only invest with local commercial banks or institutions that have a credit rating of at least “A” from one of the recognised domestic and/or international credit rating agencies.
18.6 Concentration risk
Concentration risk is the risk of losses arising due to poor diversification within funds, which can result in undesirable risk exposures. The Guardian’s Fund manages this risk through the PIC investment mandate, which dictates the level of concentration. Money market investments are spread across banks to reduce and diversify the client’s concentration risk.
18.7 Liquidity risk
Liquidity risk is the potential that there will not be adequate liquid assets available to meet the obligations of the Guardian’s Fund when they fall due.
The Guardian’s Fund manages this risk through the investment mandate that is signed with PIC. The mandate is in line with the Fund’s liquidity needs and liability profile of the Fund. Currently, the Guardian’s Fund liquid assets holding is R10.6 Billion.
18.8 Operational risk
Operational risk is the risk of loss resulting from inadequate or failed internal processes, people, systems and external events. The Fund recognises the significance of the operational inherent in all the Fund’s activities. Operational risk is managed within acceptable levels through an appropriate level of management focus and resource allocation.
18.9 Compliance risk
Compliance risk is defined as the risk of legal sanctions, material financial loss, or loss to reputation the Fund may suffer as a result of its failure to comply with laws, its own regulations, code of conduct, and standards of best/good practice. Compliance is managed through the DFI and Procedure Manual which are updated regularly.
Interest received (R millions)
Interest paid (R Millions)
800700600500400300200100
0
-0.02 -0.015 -0.01 -0.005 0 0.005 0.01 0.015 0.02
Prime interest rate fluctuations
Rand
Mill
ions
The Guardian’s Fund • Annual Report 2015/16 Financial Year 44
RP300/2016
ISBN: 978-0-621-44885-6
The Department of Justice and Constitutional Development Tel: 012 315 1111
Private Bag X81, Pretoria, 0001
Momentum Centre, 329 Pretorius Street, Pretoria
www.justice.gov.za @DOjCD_zA DOJCD DOJCD