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Basis of accountingOpinion ended, in accordance with Generally Accepted Accounting Practices (GAAP) and in the manner required by the PFMAand Companies Act of South Africa and the Mineral Technology Act, 1989 (Act No.30 of 1989).Emphasis of MatterWithout qualifying my audit opinion, I draw attention to the followiing matter:contributed to these incidents.Other MattersInternal controlVarious standard operation procedures were not complied with thereby compromising the internal control environment.Furthermore, the following monitoring controls were not always adhered to:• Certain incompatible duties were not always segregated.documents were processed.• Creditors reconciliations were not performed.Material non-compliance with applicable legislation• Contrary to the requirements of section 28 of the Value Added Tax Act, 1991 (Act No 89 of 1991), Value AddedTax (VAT) returns for the periods April to October were only submitted to SARS at the end of October 2006.Consequently fruitless and wasteful expenditure amounting to R263 019 as disclosed in note 34 of the AFS wasincurred.• Property, plant and equipment was understated by R6 446 055 for the current year and R11 433 757 wasprocessed.• Intangible assets were understated by R 4 260 735 and were not separately disclosed as required by IAS 38 (AC129).• Investment Property was not revalued at year-end as required in line with the accounting policy adopted bymanagement. As a result the balance was adjusted by R2 941 266.• Accounts receivable were not disclosed at fair value as required by IAS 21 (AC 112) resulting in an adjustment ofR443 382.• Deferred income was understated by R669 545.• Provisions were overstated by R3 782 698.• Retained earnings were understated by R11 510 529 due to the revision of useful lives of property plant, andequipment.• Performance guarantees of R5 332 807 were not accounted for.annual report 2007 60