2005/2006 - SANParks

2005South African National ParksNOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 200631 March 2006R’00031 March 2005R’00022 Net cash generated by operationsSurplus from operations 39,259 40,030Adjustments for non-cash items: 37,225 47,019- Net loss / (surplus) on disposal of property, plant and equipment (165) 1,470- Depreciation 25,314 24,901- Recognition/amortisation of deferred income - asset grants (3,326) (734)- Provision for post-retirement health benefi t obligations 15,402 21,382Changes in working capital (18,525) 56,542- Inventories (4,360) (728)- Receivables and prepayments 10,224 3,924- Trade and other payables (11,538) (18,580)- Provisions - (1,378)- Deferred income - obligation regarding special project grants (28,553) 67,917- Reservation deposits held 15,702 5,386Cash generated by operations 57,959 143,59123 Financial risk managementLiquidity riskSouth African National Parks manages liquidity risk by monitoring forecastedcash fl ows and ensuring that adequate unutilised borrowing facilities aremaintained.Interest rate managementInterest rate risk arises from incremental funding/new borrowings and the rolloverof maturing debt/refi nancing of existing borrowings. South African NationalParks borrows at both fi xed and fl oating interest rates.Credit risk managementPotential concentrations of credit risk consist mainly of short-term cash, cashequivalent investments and trade debtors.South African National Parks limits its counter party exposures from its moneymarket investment operations by only dealing with well-established fi nancialinstitutions of high quality credit standing. The credit exposure to any onecounter party is managed by setting transaction/exposure limits, which arereviewed annually.130