2018-19 Annual Report

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
76
2019 2018
9. DEFERRED INCOME/UNSPENT CONDITIONAL GRANTS/TRANSFERS R ‘000 R ‘000
Balance at the beginning of the year 21,165 21,165
Conditional Grants/Transfers - National Lotteries Commission 15 15
Conditional Grant/Transfers - Department of Arts and Culture 21,150 21,150
Movement during the year – Receipts - -
Movement during the year – Amortized (108) -
Balance at year end 21,057 21,165
Conditional Grant/Transfers - Department of Arts and Culture 21,042 21,150
Conditional Grants/Transfers - National Lotteries Commission 15 15
10. FINANCE LEASE OBLIGATION
Minimum Lease payments due
- Within one year 183 183
- In second to fifth year inclusive 153 336
336 519
Less: Future finance charges (30) (69)
Present value of future minimum lease payments 306 450
Present value of minimum lease payments due
- Within one year 160 144
- In second to fifth year inclusive 146 306
306 450
Current portion of finance lease obligation 160 144
Long-term portion of finance lease obligation 146 306
306 450
It is National Heritage Council policy to lease certain equipment under finance leases:
Entered into a rental operational agreement with Kopano Solutions t/a Nashua Kopano for five (5) photocopy machines effective from 1 February 2018. The contract is for a period of
3 years (36 months) at R 183,625 per annum. The lease is accounted for as a finance lease since the lease term is for the major part of the economic life of the assets, even though
the title to the asset may not be transferred on expiry of the lease term. Additional finance costs are charged by the lessor which based on the prime rate, thus attracting additional
finance costs which are not included in the above reconciliation.