2018-19 Annual Report

REPORT OF THE CHIEF EXECUTIVE OFFICER
I wish to express my warm appreciation to the Executive and Accounting Authority respectively for their continued support and oversight role. I would also like to extend my
appreciation to the Audit and Risk Committee and Internal Audit Function for their contribution to a sound control environment, and my management team and staff for their
continued resilience throughout the financial year, despite many challenges we encountered.
FINANCIAL HIGHLIGHTS AND CHALLENGES
The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that the funds will be available to finance
future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. Nothing has
come to the attention of the National Heritage Council (NHC) to indicate that the organisation would not remain a going concern for the foreseeable future, based on forecasts and its
liquidity.
The going concern assumption is valid in the light of the funding from the Department of Arts and Culture (DAC) and fundraising initiatives.
It should be noted that the funding made available by the DAC is insufficient for the NHC to fulfil its full mandate. Thus funding remains a constraint.
As at 31 March 2019, the NHC reported a deficit of R 3,8 million. This is attributed to the deferred expenditure which is set off against accumulated surplus in the Statement of Changes
in Net Assets as required by accounting standards. The accounting treatment does not represent a cash deficit.
The NHC through fundraising initiatives and partnerships generated additional resources of R 2,5 million in 2018/19 financial year. (PART E (Notes to the Annual Financial Statement: Note
36 Other Significant Transactions and Events))
ANNUAL PERFORMANCE
A detailed outline of the performance against objectives is listed in the Performance Report (PART A).
HUMAN RESOURCES
The HR policies were fully implemented during the financial year. Further information is provided in the Human Resource Report (PART D).
FRAUD
There were no cases of fraud reported and identified.
EVENTS AFTER THE REPORTING DATE
There were no events identified by NHC after the reporting date.
AUDIT MATTER
The NHC maintained a clean audit outcome for the period under review. It should be noted that the NHC has been a recipient of unqualified audit outcomes since inception.
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