2018-19 Annual Report

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019
31. GOING CONCERN
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 Management and Accounting Authority to indicate that the organisation would not remain a going concern for the foreseeable future, based
on forecasts and its liquidity.
32. EVENTS AFTER REPORTING DATE
The council is not aware of any matter of circumstance arising since the end of the reporting period.
33. BUDGET VARIANCES
The budget was approved by the Council and submitted to the Executive Authority in terms of section 53(1) of the PFMA.
Explanation for other significant variances are:
a. Delays in transferring financial support from partners in respect of heritage programmes and projects,
b. Operating Expenses – Operating expenses include R 2, 285, 253 which relates to prepayments and advances to heritage funded projects as required by the applicable
accounting standard i:e deferred expenditure. The accounting treatment does not represent a cash deficit.
c. Administrative Expenses – During the period under review the costs of compliance increased due to full composition and attendance of the Council as prescribed by the NHC Act,
d. Employment Related Costs – The NHC undertook an organizational review process which led to migration of existing personnel from the old to new structure which
delayed filing of other funded posts.
34. COMMITMENTS
Up to one year
Amount
2019
R’000
Amount
2018
R’000
Funding Disbursements (Heritage Funded Projects) 2,909 2,189
Heritage Projects 122 829
Quotations and contracts (Excluding Finance and Operating Leases) 3,168 3,986
Later than one year and not later than 5 years
Quotations and contracts (Excluding Finance and Operating Leases) - 889
TOTAL 6,199 7,893
95