SANLiC Annual Report 2020

South African National Library and Information Consortium

Your smart eResource collective

CONTENTS

Vision and Mission 1

Governance and Membership 1

Board of Directors 2

Chairperson’s Report 4

Director’s Report 6

Licensing Manager’s Report 8

Treasurer’s Report 10

Annual Financial Statements 11

SANLiC harnesses the collective purchasing power of member institutions in order to

optimise their expenditure on scholarly information.

In 2020 SANLiC member institutions participated in 701 SANLiC negotiated subscriptions,

across 55 deals with 52 publishers. The total list price for all subscriptions was R4.76 billion

and yet the total consortium price paid by members was R676 million. This translates to a

cost avoidance of 86% or R4.08 billion.

SANLiC | Annual Report 2020

VISION

SANLiC is the leading facilitator of cost-effective access to high-quality scholarly electronic information

in support of research, teaching and learning in Public Higher Education and Research Institutions.

MISSION

SANLiC facilitates, on a non-profit basis, affordable access to scholarly electronic information in

support of the learning, teaching and research activities of its members.

This is achieved mainly through collective negotiations with publishers and aggregators.

It also promotes the use of high-quality, open-access electronic information resources.

GOVERNANCE

As required by the Companies Act of South Africa, SANLiC is governed by a Memorandum of

Incorporation adopted at a General Meeting on 9 May 2013 and amended at a General Meeting

on 29 June 2020.

MEMBERSHIP REGISTER

Agricultural Research Council

Cape Peninsula University of Technology

Central University of Technology

Council for Scientific and Industrial Research

Durban University of Technology

Human Sciences Research Council

Mangosuthu University of Technology

MINTEK

Nelson Mandela University

National Library of South Africa

North-West University

National Research Foundation of South Africa

Rhodes University

South African Medical Research Council

Sefako Makgatho Health Sciences University

Sol Plaatje University

Stellenbosch University

Tshwane University of Technology

University of South Africa

University of Cape Town

University of Fort Hare

University of Johannesburg

University of KwaZulu-Natal

University of Limpopo

University of Mpumalanga

University of Pretoria

University of the Free State

University of Venda

University of the Western Cape

University of the Witwatersrand

University of Zululand

Vaal University of Technology

Walter Sisulu University

BENEFICIARIES

University of Botswana

University of Namibia

Your smart eResource collective | SANLiC

1

CHAIRPERSON: LAILA VAHED

Ms Laila Vahed is the Director of Library and Information Services at the University

of Zululand, a position she has held since 2003. She holds a Master’s Degree in

Information Studies from the University of Natal. Laila has held portfolios in various

national library structures over the years, including the Library and Information

Association of South Africa (LIASA) and the National Council for Library and

Information Services. She also co-chaired the International Federation of Library

Associations and Institutions World Library and Information Congress National

Committee for the 2007 congress. In 2016 Laila was named LIASA Librarian of

the Year for her services to librarianship in South Africa.

DEPUTY CHAIR: UJALA SATGOOR

Ms Ujala Satgoor has been the Executive Director of the University of Cape

Town Libraries since 2019. With over 25 years’ experience, Ujala has fulfilled

a leadership role on many national and international library and information

services advisory and governing boards and committees during her career. These

include Board Member: International Association of University Libraries (2020-);

Chair: Committee of Higher Education Libraries of South Africa (2018-2020);

Library and Information Association of South Africa (LIASA) President (2012-

2014); Co-Chair: 2015 International Federation of Library Associations and

Institutions (IFLA) World Library and Information Congress National Committee;

Member: African Library and Information Associations and Institutions Governing

Board; Member: IFLA Africa Section; and Member: Council on Higher Education

Library & Information Services Reference Group. With several published

papers, Ujala’s experience includes library grant proposal writing and grants

management, library leadership development and strategy formulation. Ujala

was named the first LIASA Executive Librarian of the Year in 2018.

TREASURER: SARAH KIBIRIGE

Ms Sarah Kibirige is the Director of Library & Information Services at Sefako

Makgatho Health Sciences University (SMU). She has over 30 years’ experience

in the academic libraries sector. Prior to joining SMU, Sarah held senior-level

positions at various institutions including North-West University, Monash South

Africa, Stellenbosch University, Tshwane University of Technology and Vaal

University of Technology. She is a graduate of Makerere University in Uganda

where she obtained a Bachelor of Arts, a Diploma in Education, and a Postgraduate

Diploma in Librarianship. She holds an Honours Degree in Library Science from

the University of South Africa and a Master’s Degree in Library Studies from the

University of Pretoria. She is a committee member of the International Federation

of Library Associations and Institutions Health & Biosciences Libraries Section.

2


HARDY MARITZ

Mr Hardy Maritz is the Acting Executive Director of Finance, and formally holds the position of Group

Finance Director at the University of Cape Town (UCT). Hardy served articles with KPMG and moved

into higher education after completing successful international contracts with Shell International/Exxon

Mobil and Ralston Energy Systems (Energizer/Eveready). He has a 21-year track record in highereducation

leadership in all spheres of finance. A founder member and current deputy chair of the

Finance Executive Forum of Universities South Africa, Hardy is a director of UCT Food Services and

past director on the board of the Tertiary Education and Research Network of South Africa (TENET).

He also served as the chair of the TENET Audit and Risk Committee and as a member of TENET’s Executive, Remuneration and

Nomination Committees. He currently also serves as chair of the UCT Retirement Fund Investment Committee.

ELLEN TISE

Ms Ellen Tise has held the position of Senior Director of Library and Information Services at Stellenbosch

University since January 2006. Previous positions include University Librarian at the University of the

Western Cape and Deputy University Librarian at the University of the Witwatersrand. Ellen is a past

president of the International Federation of Library Associations and Institutions (2009) and the Library

and Information Association of South Africa (1998-2002). She has served on the Bill & Melinda Gates

Foundation Access to Learning Award Advisory Committee, the OCLC Members Council (2005-2008),

the UNESCO International Advisory Committee of the Memory of the World (2011-2015) and the

Sabinet Online Board (since 2003). She has also chaired the board of the National Library of South Africa (2012-2015). A

recipient of several awards for leadership and contributions to librarianship, Ellen has also published papers in professional

journals and is a regular speaker at national and international conferences.

CONNIE BITSO

Dr Connie Bitso is the Director of the University of Fort Hare Libraries. Previously she held a senior

lectureship at the University of Cape Town (UCT). She graduated with a PhD in Information Science

from the University of Pretoria and holds a Master’s Degree in Library and Information Science from

UCT. Connie has a wealth of research, teaching and learning experience in the library and information

science discipline and is the past chair (2016-2018) of the Library and Information Association of

South Africa’s Research and Training Interest Group. She has also served as the Trustee of The Bookery

in 2016-2020 and is currently Deputy Chair of South East Academic Library Systems’ Trustees. She

has published book chapters and articles in reputable journals and is also a regular speaker at national and international

conferences.

PATEKA NTSHUNTSHE-MATSHAYA

Ms Pateka Ntshuntshe-Matshaya is the Senior Director of Library Services at Walter Sisulu University.

She has served the academic library and information services sector for over 35 years, of which over

28 years have been in leadership positions. As an active member of various library organisations,

Pateka chairs the Eastern Cape Library Advisory Council to the Premier and has served as chairperson,

secretary, and deputy chairperson of the Committee of Higher Education Libraries of South Africa, and

deputy chairperson of the Library and Information Association of South Africa’s Western Cape branch.

DAISY SELEMATSELA

Dr Daisy Selematsela (PhD) is the Executive Director, Library & Information Services at the University of

South Africa, and is a Professor of Practice of Knowledge Management at the University of Johannesburg.

An active member of international and national professional organisations, Daisy currently serves as

a director on the boards of the International Science Council South African Committee on Data and

Science (ISC-NC CODATA), Research4Life, Confederation of Open Access Repositories, CODATA

International, the Information Training and Outreach Centre for Africa, ORCID, the Committee of Higher

Education Libraries of South Africa and SANLiC. She also serves on the editorial boards of CODATA’s

Data Science Journal, the Global Change Data Repository and the Preservation, Digital Technology & Culture journal. Daisy

received the Knowledge Management Leadership Award in 2016 and again in 2019 and was a speaker at the 1st International

Conference on Knowledge & Innovation Management in 2019.


3

CHAIRPERSON’S REPORT

Twenty Twenty – a year like no other!

May I take a moment to reflect on what I wrote a year ago in my 2019 report, which was written just

two to three months in from the start of the COVID-19 outbreak in South Africa:

The SARS-CoV-2 virus and the resultant COVID-19 pandemic has consumed the entire world and

wreaked havoc not only on every person’s health and welfare, but also on our ability to reflect on what was without being

overwhelmed with thoughts of whether we will ever get back to ‘normal’ as we knew it. What is apparent is that SANLiC as an

organisation and as a business will not escape the fever caused by this virus, this unseen enemy, this war that is raging!

Well, if ever there was an understatement that was it!

Unbelievably we are still in the middle of this silent war, on the brink of the ‘third wave’ in this country. None of us has escaped.

If we did not suffer the virus ourselves, someone close to us did, a relative, a friend, a neighbour, a work colleague. Death

visited all of us in one way or another. Every organisation in South Africa bore the brunt of this silent war. Following the loss of

personnel in many industries, the loss of productivity and the loss of income affected all of us either directly or indirectly. As I

write this I should not be using the past tense because we are still in the middle of this pandemic.

For SANLiC, 2020 started on a positive note, with a Directors’ Round Table that was held on 25-26 February 2020. The

meeting was mooted by several discussions over the previous year in which different opinions emerged from key SANLiC role

players, making it important to double check the opinions of the SANLiC members with regard to open access (OA) issues and

to assess the impact of OA developments on SANLiC and its business model. The time was ripe for SANLiC to formulate an

opinion on the matter of OA in order to determine the future direction for the organisation, so at the November 2019 Board

Meeting, the SANLiC Board of Directors decided to hold a Special General Meeting of members. The meeting was planned to

include OA case studies as well as to review the SANLiC Memorandum of Incorporation (MOI).

Ellen Tise facilitating a session at the Library Directors’ Round Table

Focus group feedback session at the Library Directors’ Round Table

Ellen Tise (Board Director) played a key role in the development of the OA portion of the Round Table programme, together

with Nora Buchanan (Licensing Manager) and Glenn Truran (Director), as well as myself. The programme was developed to

ensure full participation by all attendees so that the resultant outcomes would be owned by the entire SANLiC membership.

4


Ellen Tise also facilitated the well-attended event, which included input from Reggie Raju from UCT. This Round Table in many

senses dictated the way forward for SANLiC for the balance of 2020 as we engaged with several activities, including the one

relating to data analysis.

The major outcome of this event was the production of the SANLiC Statement on Open Access that will underpin our work for

a while to come. The Statement concluded that:

SANLiC holds the position that South Africa is not ready for transformative agreements and that transformational agreements

must be explored to foster social justice and inclusivity. The influence of COVID-19 must be given serious consideration in

developing a transformational open-access strategy to ensure marginalised global south scholarship is accessible to the widest

reading audience. Acknowledging that global south scholarship matters, there is a dire need for a fit-for-purpose model, a

multi-pronged model that demonstrates inclusivity, a model built around social justice principles.

The Round Table also served for members to agree on various changes to the MOI, one of the most significant being the

reduction in the size of the Board from ten to seven member-appointed directors, who should serve only two consecutive terms

of three years each. These changes were formalised at the AGM of 29 June 2020.

Throughout all the changing levels of lockdown, from five to one during the year, SANLiC continued against all odds to forge

ahead. The cost avoidance during 2020 exceeded R4 billion, representing a share of the list price consistent with the previous

three years. Despite cutbacks and reassignment of institutions’ budgets to pandemic mitigations, our subscriptions remained

relatively healthy.

In our favour throughout 2020 was that working in a remote environment was not new to us. We have been conducting work

semi-remotely for several years, so moving into full-time online meetings and consultations was easily achieved. Nevertheless,

we did miss the live meetings and interactions, and despite the efficiency of online meetings, nothing can replace networking

in person. So, although we could not share a cup of tea or coffee together, we did cater long distance to our Board Directors

for one meeting, just to provide a semblance of normality, and to say thanks for dedicated time and energy in serving SANLiC.

The following staff served SANLiC during the period under review:

• Glenn Truran: SANLiC Director

• Nora Buchanan: Licensing Manager

• Naomi Gaines: Office Administrator

• Theodora Nobula: Part-time Office Cleaner

We once again benefitted from the part-time services of Shireen Davis-Evans, who continued to work on the data analysis

project. I remain indebted to the SANLiC staff for their dedication and commitment to the company, together with all the directors

serving on the SANLiC Board. Particular gratitude must be extended to Vivian Agyei who continued to serve the organisation

as Treasurer following her retirement, until we appointed Sarah Kibirige. We also extend our gratitude to Lucille Webster who

exited the SANLiC Board after serving two terms. I would also like to acknowledge and pay special tribute to Juliano Kabamba,

a member representative during our transition period from consortium to institutional membership. He represented the Free

State Higher Education and Training Trust (FSHETT) and then the Central University of Technology (CUT), as a Director on the

SANLiC Board. Juliano retired during the year under review, so I take this opportunity to thank him for his service to the higher

education library sector, and to SANLiC in particular, and to wish him well during his retirement.

Running an organisation like SANLiC is a team effort, so once again thank you to the staff, the Executive Committee and all

other Board Directors. Thank you for your contributions and resilience during this year that was a year like no other!

Laila Vahed

Chairperson


5

DIRECTOR’S REPORT

Some analysts argue that the COVID-19 pandemic has been an accelerator of change, especially in the

world of work. Research, higher education and the scholarly publishing that underpins it has not been

spared from this acceleration. It is no surprise therefore that SANLiC operations and outcomes have

been impacted as well. The treasurer’s report, as well as the audited financial statements, which are the

main material of this annual report, will elaborate on the financial impact of these changes. Fortunately,

SANLiC operations are well-suited to people working in a virtual space and from home.

There were some positives that arose due to the pandemic. Perhaps the most significant of these being that 0% increases were

either offered or negotiated on most of the agreements up for renewal during 2020. Noted among the exceptions are cases

where there has been a significant increase in content. The trend of publishers increasing content to justify higher subscription

fees cannot continue unchecked. It is not sustainable in an environment where library budgets are contracting in real terms.

As outlined in the Chairperson’s Report, SANLiC held the Library Director’s Round Table on open access over two days in

February 2020 which led to the commissioning of a more intensive phase of the SANLiC data analysis project. It was initiated

to inform the SANLiC and South African open-access strategy and to prepare for negotiations with all publishers in general. The

data analysis focused on SA research output (2014-2019), specifically corresponding authorship, looking at eligible journal

articles and reviews – items that would attract publication charges if all journals were flipped to gold open access. Of the total

62 549 articles assessed, approximately one third are open access and the remaining two thirds are behind paywalls. The data

gleaned from this study will facilitate the extrapolation of future costs where there is growth in open-access publishing. This data

was combined with publication cost information (paying to publish) as well as reading costs (paying to read) or subscriptions

to assess the economic impact of a transition to full open access.

South African 2019 corresponding authorship

disaggregated by article open access status.

The data analysis revealed that in 2020, 82% ($27 130 138) of the SANLiC journal expenditure was on the big five journal

packages (Elsevier’s ScienceDirect, Wiley, Springer Nature, Taylor & Francis and SAGE), yet only 52% of South African

research output (corresponding authorship) is published within these packages.

The table above is a visualization of the facts that:

• In 2019, roughly 37% of South Africa’s research output is open access (in gold and hybrid journals combined) and 60% is

behind a paywall (closed and bronze).

• Most (72%) of SA’s paywall publishing (closed and bronze open access) takes place within journals located in the big five

deals and is therefore most important for achieving any goals of transitioning to open access publishing and repurposing

of subscription funding to finance open-access publishing.

• Open access publishing by SA authors in hybrid journals (gold to hybrid) is insignificant (less than 2%) as compared to

closed articles (closed and bronze) in those same journals (59%).

6


• Most (72%) of SA’s gold open access publishing currently resides outside of journals in SANLiC-negotiated deals. The big

five deals account for less than 25% of the share of gold open access publishing for South Africa.

If all journals flipped overnight, the combined SANLiC member spend for subscriptions and article processing charges could be

significantly reduced. Paying to publish could potentially cost our membership approximately 55% of what we currently spend

on both reading and publishing.

The data analysis project would not have been possible without the generosity of Clarivate Analytics who provided the raw

research output data from the Web of Science. Particular thanks go to Mrs Shireen Davis-Evans who meticulously and thoroughly

enriched and cleaned up that data for SANLiC’s purposes.

The SCOAP 3 (Sponsoring Consortium for Open Access Publishing in Particle Physics) project entered the first year of Phase

Three in 2020 . South Africa’s fixed annual contribution for Phase 3 (2020-2022) is € 32,000. In 2020, the SANLiC Board

determined that for Phase 3 the South African contribution will be financed as follows:

• Universities without physics departments and the two research institutions with an interest in physics (CSIR and NRF) will

pay € 800.00 annually.

• Universities with physics departments will pay € 1,200.00 annually.

At the October 2020 SCOAP 3 10th Annual Governing Council Meeting the members voted unanimously to maintain the current

scope of the SCOAP 3 initiative, in terms of publishing services and procurement conditions, by arranging a two-year extension

of Phase 3 (currently 2020-2022) under existing terms. This recommendation was developed specifically to provide members

of the SCOAP 3 partnership with stability during the financial uncertainty resulting from the COVID-19 pandemic. If negotiations

with the relevant publishers are successful, this will mean that the current South African contribution, and by extension, SANLiC

member contribution will remain fixed until the end of 2024. SCOAP 3 users should thus not expect changes in their access to

high-energy physics literature or their ability to publish their research without any author fees in the SCOAP 3 journals for the

coming years.

Through the collective effort of its members from

around the world, and in partnership with publishers

of the leading journals in the discipline, SCOAP 3 has

transitioned 90% of the research output in high-energy

physics since 2014 to perpetual OA. Reproduced with

permission from CERN.

Finally, without the help of the SANLiC Chairperson and other SANLiC Directors, as well as the SANLiC staff, Dr Nora

Buchanan and Ms Naomi Gaines, my position as a SANLiC director would have been impossible to fulfill in 2020. Nora and

Naomi, in particular, deserve special thanks for their dedication to SANLiC and their willingness to adjust their contributions

to compensate for my shortcomings.

Glenn Truran

SANLiC Director

1

Established in 2014, SCOAP 3 is a partnership of 3,000 libraries, funding agencies, and research organisations from 44 countries and 3 intergovernmental

organisations. Since the outset of SCOAP 3 , over 20,000 scientists from 120 countries have benefited from the opportunity to publish more than 39,000 openaccess

articles free of charge. Hosted at the European Organisation for Nuclear Research (CERN), SCOAP 3 centrally funds OA for articles across 11 journals,

enabling free global readership and re-use for high energy physics research, and barrier-free publishing (i.e. without Author Processing Charges, APCs) for

authors from across the world. https://scoap3.org/irel-joins-scoap3/


7

LICENSING MANAGER’S REPORT

In 2020 SANLiC managed 55 agreements with 52 publishers. Of these agreements, 18 are multi-year

agreements. The agreements cover more than 188 products and include databases, e-journals, and

e-books. The overall cost avoidance for SANLiC members was 86%.

Total list price:

R4,762,278,003

Total sales price:

R675,689,015

Cost avoidance:

R4,086,588,989

This chart represents the annual sum of the list price of all subscriptions. The list price is represented by the combination of the

consortium price paid by members plus the resultant costs avoided (cost avoidance).

COVID-19 dominated our lives in 2020. In response to lockdown restrictions, some publishers lifted access restrictions to their

publications. Students and researchers working from home had to grapple with the difficulties presented by off-campus library

access. Intermittent load-shedding did not help. Usage statistics were also impacted. As a result of making some or all their

content open to support researchers, publishers were not always able to attribute usage to institutional subscribers.

In addition, problems regarding the printing and distribution of content to students in areas without stable internet access arose.

Some agreements do not allow this and, as a result, SANLiC had to seek special permission from the respective publishers.

Only one new offer was negotiated for 2020: Cabells Journalytics and Predatory Reports. A discount of 45% off the list price

is offered to SANLiC members.

8


During 2020 SANLiC continued to manage the workflows associated with the consortium agreements on Consortia Manager.

The advantages of using this database include storing all information related to SANLiC agreements in one place, being able

to retrieve the data easily and ensuring that it is not lost. One-on-one training was offered to SANLiC members as required

during the year.

This chart shows the percentage of the list price paid by each member and the percentage of cost avoidance.

Nora Buchanan

Licensing Manager


9

TREASURER’S REPORT

The effects of the COVID-19 pandemic dominated 2020, the year in review. After careful consideration

of the uncertain financial situation across member institutions, a decision was taken to keep annual

membership and service fees levied on members unchanged. Reduced interest rates impacted interest

income. The poor performance of the Rand against foreign currencies led to losses on exchange

differences, a development which had a negative impact on license costs. SANLiC’s revenue in 2020

was significantly reduced and expenditure was negatively affected as a result. As expected, costs

associated with travel were reduced compared with 2019.

A key decision to move SANLiC’s financial record-keeping from Pastel on a computer to Xero in the cloud was taken. The benefits

of this decision included streamlining the financial processes, saving time and improving financial control and oversight. In

hindsight, it was fortunate that this change was made before the March 2020 national lockdown because the old system would

not have supported a lockdown situation.

SANLiC hosts a conference every second year. The revenue and expenses associated with the conference were largely absent

from the 2020 operating budget.

The SANLiC Annual General Meeting held on 29 June 2020 approved the retention of RSM South Africa as the SANLiC

auditors for the 2020 audit based on their track record of a high quality of service. Their unqualified opinion is that the financial

statements, as reflected in the rest of this report, are a fair representation of the financial position of SANLiC in all material

respects.

The Board decided not to increase the 2021 membership fees and the 2020 service fees during the annual review of fees. The

marginal increase in service fees from R2,857,573 in 2019 to R2,912,489 in 2020 is due mainly to a change in SCOAP 3

allocations across the membership. As is best practice and in line with the International Financial Reporting Standards for Small

and Medium-Sized Entities, the service and membership fees invoiced reflect as income in the year in which the relevant service

is provided.

Member subscriptions, service fees and

membership fees 2013 - 2020.

At the time of issue of these annual financial statements any possible impact on the company’s future operations is difficult to

assess due to the uncertainties surrounding the global and national management of the COVID-19 pandemic and the length

of any curtailment of economic activity. However, the company had sufficient reserves for 25 months of funding, and enough

cash on hand (R6,487,192) to operate for 21 months.

Notwithstanding the disruptive effects of the COVID-19 pandemic, SANLiC continued to provide access to electronic information

to all its members in the higher education and research institutions and organisations within available funds and resources.

Sarah Kibirige

Treasurer

10


ANNUAL FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020


11

SOUTH AFRICAN NATIONAL LIBRARY AND INFORMATION CONSORTIUM (RF) NPC

(Registration number: 2003/008624/08)

Annual Financial Statements for the year ended 31 December 2020

GENERAL INFORMATION

Country of incorporation and domicile: South Africa

Nature of business and principal activities: The sole or primary object of the Company shall be to

negotiate and secure for the benefit of its Member Institutions, acting in the public interest and on

a non-profit basis, the right of access to, and the benefit of, electronic databases and other digital

resources, which are thereby made available to membership institutions on a subscription basis.

Directors: M C Bitso, S N Kibirige, H R Maritz, P P Ntshuntshe-Matshaya, U Satgoor, S D Selematsela,

E R Tise, G B Truran and L A K Vahed

Business and postal address: 5 Faure Close, Diep River, Cape Town, Western Cape, 7800

Company registration number: 2003/008624/08

Preparer: The annual financial statements were independently compiled by H Adam CA(SA) and

ECS Accounting Inc.

Level of assurance: These annual financial statements have been audited in compliance with the

applicable requirements of the Companies Act of South Africa.

Auditor: RSM South Africa Inc.

Published: 27/05/2021

12





CONTENTS

Directors' Responsibilities and Approval 14

Independent Auditor's Report 15

Directors' Report 18

Statement of Financial Position 20

Statement of Comprehensive Income 20

Statement of Changes in Reserves 21

Statement of Cash Flows 21

Accounting Policies 22

Notes to the Annual Financial Statements 26

The following supplementary information

does not form part of the annual financial statements:

Detailed Statement of Surplus or Deficit 30


13




DIRECTORS’ RESPONSIBILITIES AND APPROVAL

The directors are required by the Companies Act of South Africa to maintain adequate accounting records and are responsible

for the content and integrity of the annual financial statements and related financial information included in this report. It is their

responsibility to ensure that the annual financial statements fairly present the state of affairs of the company as at the end of

the financial year and the results of its operations and cash flows for the period then ended, in conformity with the International

Financial Reporting Standard for Small and Medium-sized Entities and the requirements of the Companies Act of South Africa.

The external auditors are engaged to express an independent opinion on the financial statements.

The annual financial statements are prepared in accordance with the International Financial Reporting Standard for Small and

Medium-sized Entities and the requirements of the Companies Act of South Africa, and are based upon appropriate accounting

policies consistently applied and supported by reasonable and prudent judgements and estimates.

The directors acknowledge that they are ultimately responsible for the system of internal financial control established by the

company and place considerable importance on maintaining a strong control environment. To enable the directors to meet

these responsibilities, the directors set standards for internal control aimed at reducing the risk of error or loss in a cost-effective

manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting

procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout

the company and all employees are required to maintain the highest ethical standards in ensuring the company’s business is

conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the company

is on identifying, assessing, managing and monitoring all known forms of risk across the company. While operating risk cannot

be fully eliminated, the company endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and

ethical behaviour are applied and managed within predetermined procedures and constraints.

The directors are of the opinion, based on the information and explanations given by management, that the system of internal

control provides reasonable assurance that the financial records may be relied on for the preparation of the annual financial

statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against

material misstatement or deficit.

The directors are satisfied that the company has, or has access to, adequate resources to continue in operational existence for

the foreseeable future.

The external auditor is responsible for independently auditing and reporting on the company’s financial statements. The financial

statements have been examined by the company’s external auditor and his report is presented on pages 15 to 17.

The annual financial statements set out on pages 18 to 29, which have been prepared on the going concern basis, were

approved by the directors and were signed on their behalf by:

Director

Director

Date: 20 May 2021

14





INDEPENDENT AUDITOR’S REPORT

INDEPENDENT AUDITOR'S REPORT


To the members of the South African National Library and Information Consortium (RF) NPC

To the members of South African National Library and Information Consortium (RF) NPC

Opinion

To Opinion the members of South African National Library and Information Consortium (RF) NPC

We have audited the financial statements of South African National Library and Information Consortium (RF)

NPC set out on pages 9 to 19, which comprise the statement of financial position as at 31 December 2020, and

Opinion

the of comprehensive income, statement of changes in reserves and statement of cash flows for the

We have audited the financial statements of the South African National Library and Information Consortium (RF)

year then ended, and notes to the financial statements, including a summary of significant accounting policies.

We NPC have set out audited on pages the 20 financial to 29, which statements comprise of the South statement African of National financial Library position and as at Information 31 December Consortium 2020, and (RF) the

In our opinion, the financial statements present fairly, in all material respects, the financial position of South

NPC statement set out of comprehensive on pages 9 to income, 19, which African statement comprise National Library of the changes and statement Information in reserves of Consortium financial and (RF) statement position NPC as of as at cash 31 at December 31 flows December for 2020, the and 2020, year its financial then and

the performance and cash flows for the year then ended in accordance with the International Financial Reporting

ended,

statement

and notes

of comprehensive

to the financial statements,

income, statement

Standard for Small including and Medium-sized a

of

summary

changes

Entities of

in

and significant

reserves

the requirements accounting

and statement

of the Companies policies.

of cash flows for the

Act of South Africa.


Basis for opinion

In our opinion, the the financial statements present present fairly, fairly, in all material in all material respects, respects, the financial the position financial of position the South of African South

We conducted our audit in accordance with International Standards on Auditing. Our responsibilities under those

African National National Library and Library Information and Information standards Consortium are further Consortium (RF) described NPC as in (RF) at the 31 Auditor’s NPC December responsibilities as at 2020, 31 for December and the audit its of the 2020, financial performance and statements its financial section and of

performance our report. We are independent of the company in accordance with the Independent Regulatory Board for

cash flows for

and

the year

cash

then

flows

ended

for the

Auditors’ in accordance

year then ended

Code of Professional with the

in

Conduct International

accordance

for Registered Financial

with the

Auditors Reporting

International

(IRBA Code) Standard

Financial other for Small

Reporting

independence and

Standard for Small and Medium-sized requirements Entities applicable and to the performing requirements audits of annual of the financial Companies statements in Act South of Africa. South We Africa. have fulfilled our

Medium-sized Entities and the of the Companies Act of South Africa.

other ethical responsibilities in accordance with the IRBA Code and in accordance with other ethical requirements

applicable to performing audits in South Africa. The IRBA Code is consistent with the corresponding sections of

the International Ethics Standards Board for Accountants' International Code of Ethics for Professional

Basis for opinion

Basis for opinion

Accountants (including International Independence Standards). We believe that the audit evidence we have

We conducted our audit in accordance obtained is with sufficient International and appropriate Standards to provide a basis on Auditing. for our opinion. Our responsibilities under those

standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of

our We conducted report. Weour are audit independent accordance of the with company International in accordance Standards on with Auditing. the Independent Our responsibilities Regulatory under Board those for

Auditors’ standards Code are further of Professional described in the Conduct Auditor’s for responsibilities Registered Auditors for the audit (IRBA of the Code) financial and statements other independence section of

requirements our report. We applicable are independent to performing of the company audits of in annual accordance financial with statements the Independent in South Regulatory Africa. We Board have for fulfilled Auditors’ our

other Code ethical of Professional responsibilities Conduct in for accordance Registered with Auditors the IRBA (IRBA Code Code) and and in other accordance independence with other requirements ethical requirements applicable


to performing audits of annual financial statements in South Africa. We have fulfilled our other ethical responsibilities

the International Ethics Standards Board for Accountants' International Code of Ethics for Professional

Accountants in accordance (including with the IRBA International Code and Independence in accordance with Standards). other ethical We requirements believe that applicable the audit to evidence performing we audits have

obtained South Africa. is sufficient The IRBA and appropriate Code is consistent to provide with a the basis corresponding for our opinion. sections of the International Ethics Standards

Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence

Standards). We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for

our opinion.


15




Other information

The directors are responsible for the other information. The other information comprises the directors’ responsibility

statement, the directors’ report as required by the Companies Act of South Africa, and the detailed statement of surplus

or deficit. Other information does not include the financial statements and our auditor’s report thereon.

Our opinion on the financial statements does not cover the other information and we do not express an audit opinion

or any form of assurance conclusion thereon.


In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing

so, consider whether the other information To the members is materially of South African inconsistent National Library with and the Information financial Consortium statements (RF) or NPC our knowledge

obtained in the audit, or otherwise Opinion appears to be materially misstated. If, based on the work we have performed on the

other information obtained prior to We the have date audited of this the financial auditor’s statements report, of we South conclude African National that there Library is and a material Information misstatement

Consortium (RF)


of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the directors for the financial statements

The directors are responsible for the preparation and fair presentation of the financial statements in accordance with the

Basis for opinion

International Financial Reporting Standard for Small and Medium-sized Entities and the requirements of the Companies

Act of South Africa, and for such

We

internal

conducted

control

our audit

as

in

the

accordance

directors

with

determine

International

is

Standards

necessary

on Auditing.

to enable

Our responsibilities

the preparation

under those

of


financial statements that are free from our report. material We are misstatement, independent of whether company due in to accordance fraud or with error. the Independent Regulatory Board for

In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue


as a going concern, disclosing, as the applicable, International Ethics matters Standards related Board to going for Accountants' concern International and using Code the going of Ethics concern for Professional basis


of accounting unless the directors obtained either is intend sufficient to and liquidate appropriate the to provide company a basis or for to our cease opinion. operations, or have no realistic

alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

the statement of comprehensive income, statement of changes in reserves and statement of cash flows for the


In our opinion, the financial statements present fairly, in all material respects, the financial position of South

African National Library and Information Consortium (RF) NPC as at 31 December 2020, and its financial

performance and cash flows for the year then ended in accordance with the International Financial Reporting

Standard for Small and Medium-sized Entities and the requirements of the Companies Act of South Africa.

Auditors’ Code of Professional Conduct for Registered Auditors (IRBA Code) and other independence

requirements applicable to performing audits of annual financial statements in South Africa. We have fulfilled our

other ethical responsibilities in accordance with the IRBA Code and in accordance with other ethical requirements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with

International Standards on Auditing will always detect a material misstatement when it exists. Misstatements can arise

from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected

to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with International Standards on Auditing, we exercise professional judgement and

maintain professional scepticism throughout the audit. We also:

16





• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,

design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and

appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from

fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,

misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are

appropriate in the circumstances, INDEPENDENT but not AUDITOR'S for the purpose REPORT of expressing an opinion on the effectiveness of the

company’s internal control.

To the members of South African National Library and Information Consortium (RF) NPC

• Evaluate the appropriateness Opinion of accounting policies used and the reasonableness of accounting estimates and

related disclosures made by the directors.

We have audited the financial statements of South African National Library and Information Consortium (RF)


the statement of comprehensive income, statement of changes in reserves and statement of cash flows for the

• Conclude on the appropriateness year then of ended, the directors’ and notes to use the financial of the statements, going concern including a basis summary of of accounting significant accounting and based policies. on

the audit evidence obtained, In whether our opinion, a material the financial uncertainty statements present exists fairly, related in all to material events respects, or conditions the financial that position may of South cast

African National Library and Information Consortium (RF) NPC as at 31 December 2020, and its financial

significant doubt on the company’s performance ability and to cash continue flows for as the a going year then concern. ended in If accordance we conclude with the that International a material Financial uncertainty Reporting

Standard for Small and Medium-sized Entities and the requirements of the Companies Act of South Africa.

exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements

or, if such disclosures are inadequate,

Basis for opinion

to modify our opinion. Our conclusions are based on the audit evidence

obtained up to the date of our We auditor’s conducted our report. audit in However, accordance future with International events or Standards conditions Auditing. may Our cause responsibilities the company under those to


cease to continue as a going concern.

our report. We are independent of the company in accordance with the Independent Regulatory Board for

Auditors’ Code of Professional Conduct for Registered Auditors (IRBA Code) and other independence

requirements applicable to performing audits of annual financial statements in South Africa. We have fulfilled our

• Evaluate the overall presentation, other ethical structure responsibilities and content in accordance of the with financial the IRBA statements, Code and in accordance including with the other disclosures, ethical requirements and


whether the financial statements the International represent the Ethics underlying Standards Board transactions for Accountants' and events International in a manner Code of Ethics that achieves for Professional fair

presentation.


obtained is sufficient and appropriate to provide a basis for our opinion.

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and

significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

RSM South Africa Inc.

Mary-Anne Greisdorfer

Chartered Accountant (SA)

Registered Auditor

Director

Date: 27 May 2021


17




DIRECTORS’ REPORT

The directors submit their report on the annual financial statements of the company for the year ended 31 December 2020.

1. Nature of business

The company negotiates and secures for the benefit of its Member Institutions, acting in the public interest and on a non-profit

basis, the right of access to, and the benefit of, electronic databases and other digital resources, which are thereby made

available to membership institutions on a subscription basis. The company operates in South Africa.

2. Review of financial results and activities

The annual financial statements have been prepared in accordance with the International Financial Reporting Standard for

Small and Medium-sized Entities and the requirements of the Companies Act of South Africa. The accounting policies have been

applied consistently compared with the previous year.

The onset of the COVID-19 pandemic was accompanied by volatile currency fluctuations, low interest rates, and a negative

impact on financial markets. These events led to a decision not to increase 2020 Service Fees and 2021 Membership Fees

in order to ease the pressure on SANLiC membership. The risk of subscription cancellations did not however materialise in

2020. These events resulted in lower than expected service fee revenue and interest income, and was responsible for a loss on

exchange differences.

Full details of the financial position, results of operations and cash flows of the company are set out in these annual financial

statements.

3. Directors

The directors in office during the year under review are as follows:

Directors

M C Bitso

S N Kibirige

H R Maritz

P P Ntshuntshe-Matshaya

U Satgoor

S D Selematsela

E R Tise

G B Truran

L A K Vahed

M V Agyei

L E Webster

Changes

Appointed at AGM 29 June 2020

Co-opted annually

Appointed at AGM 29 June 2020

Term ended at AGM 29 June 2020

Term ended at AGM 29 June 2020

18





4. Property, plant and equipment

There was no change in the nature of the property, plant and equipment of the company or in the policy regarding the use

thereof. Details of movements are reflected in note 2 to the annual financial statements.

5. Events after the reporting period

Between the end of the reporting period and the date on which the financial statements have been approved, there have

been some subscription cancellations for 2021. The final reduction in subscriptions is not, however, expected to be material.

COVID-19 has created significant disruption and delay to the academic programme of tertiary institutions who comprise the

majority of our membership. The impact of the financial crisis on student funding and associated unrest creates uncertainty

about the timing and severity of future financial challenges.

The directors are not aware of any other material event that occurred after the reporting date and up to the date of this report.

6. Going concern

The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This

basis presumes that 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.

At time of issue of these annual financial statements any possible impact on the company’s future operations is difficult to assess

due to the uncertainty of the global and national management of the COVID-19 pandemic and the length of any curtailment

of economic activity. However, the company has sufficient reserves for 25 months of funding, and cash on hand to operate for

21 months.


19




STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020

FIGURES IN RAND

NOTE(S)

2020

2019

Assets

Non-Current assests

Property, plant and equipment

Current assests

Receivables

Cash and cash equivalents

Total Assets

Reserves and liabilities

Reserves

Accumulated surplus

13 473 25 842

13 473 25 842

2 13 473 25 842

729 132 338 077

487 729

192 132 067 338

663

077

3 2 729 132 4 338 077

487 192 067 663

4 6 216 487 324 192 5 405 067 740 663

216 324 405 740

9 229 216 797 324 9 431 405 582 740

229 797 431 582

9 229 797 9 431 582

296 419 499 922

296 419 499 922

8 296 419 8 499 922

Liabilities

Current Liabilities

Payables

Total Reserves and Liabilities

933 378 931 660

933 378 931 660

5 933 229 378 797 931 431 660 582

229 797 431 582

9 229 797 9 431 582

STATEMENT OF COMPREHENSIVE INCOME

FIGURES IN RAND

NOTE(S)

2020

2019

Revenue

Other income

Operating expenses

Operating (deficit) surplus

Interest income

(Deficit) surplus before taxation

Taxation

(Deficit) surplus for the year

Other comprehensive income

Total comprehensive (deficit) income for the year

6 3 220 522 4 484 118

9 897 17 392

(3 812 418) (4 437 127)

7 (581 999) 64 383

8 378 496 515 116

(203 503) 579 499

9 - -

(203 503) 579 499

- -

(203 503) 579 499

20





STATEMENT OF CHANGES IN RESERVES

FIGURES IN RAND

Balance at 01 January 2019

Surplus for the year

Balance at 01 January 2020

Deficit for the year

Balance at 31 December 2020

ACCUMULATED SURPLUS

7 920 423

579 499

8 499 922

(203 503)

8 296 419

STATEMENT OF CASH FLOWS

FIGURES IN RAND

NOTE(S) 2020 2019

Cash flows from operating activities

Cash receipts

Cash paid to suppliers and employees

Cash generated from (used in) operations

Interest income

Net cash from operating activities

4 839 364 3 314 236

(3 798 331) (5 626 015)

10 1 041 033 (2 311 779)

378 496 515 116

1 419 529 (1 796 663)

Cash flows from Investing activities

Purchase of property, plant and equipment

Total cash movement for the year

Cash and cash equivalents at the beginning of the year

Total cash and cash equivalents at the end of the year

2 - (20 903)

1 419 529 (1 817 566)

5 067 663 6 885 229

4 6 487 192 5 067 663


21




ACCOUNTING POLICIES

1. Basis of preparation and summary of significant accounting policies

The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This

basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of


The annual financial statements have been prepared in accordance with the International Financial Reporting Standard for

Small and Medium-sized Entities, and the Companies Act of South Africa. The annual financial statements have been prepared

on the historical cost basis, except for biological assets at fair value less point of sale costs, incorporate the principal accounting

policies set out below, and are presented in South African Rand.

These accounting policies are consistent with the previous period.

1.1 Significant judgements and sources of estimation uncertainty

In preparing the annual financial statements, management is required to make judgements, estimates and assumptions that affect

the amounts represented in the annual financial statements and related disclosures. The estimates and associated assumptions

are based on historical experience and other factors that are considered to be relevant. Actual results in the future could differ

from these estimates which may be material to the annual financial statements.

Management did not make any significant judgements in the process of applying the entity’s accounting policies, nor did they

make estimates, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities

within the next year.

1.2 Property, plant and equipment

An item of property, plant and equipment is recognised as an asset when it is probable that future economic benefits associated

with the item will flow to the company, and the cost of the item can be measured reliably.

Property, plant and equipment is initially measured at cost and is subsequently stated at cost less accumulated depreciation and

any accumulated impairment losses.

Cost includes costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred

subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of

property, plant and equipment, the carrying amount of the replaced part is removed from the accounting records.

Depreciation of an asset commences when the asset is available for use as intended by management. Depreciation is charged

to write off the asset’s carrying amount over its estimated useful life to its estimated residual value, using a method that best

reflects the pattern in which the asset’s economic benefits are consumed by the company.

22





The useful lives of items of property, plant and equipment have been assessed as follows:

Item

IT Equipment

Office Equipment

Depreciation method

Straight line

Straight line

Average useful life

3 years

6 years

When indicators are present that the useful lives and residual values of items of property, plant and equipment have changed

since the most recent annual reporting date, they are reassessed. Any changes are accounted for prospectively as a change in

accounting estimate.

Impairment tests are performed on property, plant and equipment when there is an indicator that they may be impaired. When

the carrying amount of an item of property, plant and equipment is assessed to be higher than the estimated recoverable

amount, an impairment deficit is recognised immediately in surplus or deficit to bring the carrying amount in line with the

recoverable amount.

An item of property, plant and equipment is removed from the accounting records upon disposal or when no future economic

benefits are expected from its continued use or disposal. Any gain or deficit arising from the derecognition of an item of

property, plant and equipment, determined as the difference between the net disposal proceeds, if any, and the carrying

amount of the item, is included in surplus or deficit when the item is removed from the accounting records.

1.3 Financial instruments

Initial measurement

Financial instruments are initially measured at the transaction price (including transaction costs except in the initial measurement

of financial assets and liabilities that are measured at fair value through surplus or deficit), unless the arrangement constitutes, in

effect, a financing transaction, in which case it is measured at the present value of the future payments discounted at a market

rate of interest for a similar debt instrument.

Financial instruments at amortised cost

These include cash and cash equivalents, receivables and payables. Those debt instruments that meet the criteria in section

11.8(b) of the standard, are subsequently measured at amortised cost using the effective interest method. Debt instruments

that are classified as current assets or current liabilities are measured at the undiscounted amount of the cash expected to be

received or paid, unless the arrangement effectively constitutes a financing transaction.

At each reporting date, the carrying amounts of assets held in this category are reviewed to determine whether there is any

objective evidence of impairment. If there is objective evidence, the recoverable amount is estimated and compared with the

carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable

amount, and an impairment deficit is recognised immediately in surplus or deficit.


23




1.4 Leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership to the lessee.

All other leases are operating leases.

Operating leases – lessee

Operating lease payments are recognised as an expense on a straight-line basis over the lease term unless:

• another systematic basis is representative of the time pattern of the benefit from the leased asset, even if the payments are

not on that basis, or

• the payments are structured to increase in line with expected general inflation (based on published indexes or statistics) to

compensate for the lessor’s expected inflationary cost increases.

Any contingent rents are expensed in the period they are incurred.

1.5 Impairment of assets

The company assesses at each reporting date whether there is any indication that property, plant and equipment may be

impaired.

If there is any such indication, the recoverable amount of any affected asset (or group of related assets) is estimated and

compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its

estimated recoverable amount, and an impairment deficit is recognised immediately in surplus or deficit.

If an impairment deficit subsequently reverses, the carrying amount of the asset (or group of related assets) is increased to the

revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment

deficit been recognised for the asset (or group of assets) in prior years. A reversal of impairment is recognised immediately in

surplus or deficit.

1.6 Employee benefits

Short-term employee benefits

The cost of short-term employee benefits (those payable within 12 months after the service is rendered, such as leave pay

and sick leave, bonuses, and non-monetary benefits such as medical care) is recognised in the period in which the service is

rendered and is not discounted.

1.7 Provisions and contingencies

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event; it is probable

that the company will be required to transfer economic benefits in settlement, and the amount of the obligation can be estimated

reliably.

24





Provisions are measured at the present value of the amount expected to be required to settle the obligation using a pre-tax rate

that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the

provision due to the passage of time is recognised as interest expense.

Contingent assets and contingent liabilities are not recognised.

1.8 Revenue

Revenue is recognised to the extent that the company has rendered services under an agreement provided the amount of

revenue can be measured reliably and it is probable that economic benefits associated with the transaction will flow to the

company. Revenue is measured at the fair value of the consideration received or receivable, excluding value-added tax.

Conference revenue is composed of fees received when hosting a conference. SANLiC hosts a conference every 2 years.

The conference fees are recognised once attendance has been confirmed.

Membership fees are affiliation fees received from members (universities and research institutions) in order to vote at general

meetings and to benefit from discounts with publishers arranged by SANLiC. These are recognised in the beginning of the

subscription period.

Service fees comprise a flat rate service fee on the savings members obtain on purchasing through affiliated publishers and

are recognised on transaction date. Should the discount be minimal a percentage based on a formula is applied as opposed

to a flat rate.

1.9 Foreign exchange

Foreign currency transactions

Exchange differences arising on monetary items are recognised in surplus or deficit in the period in which they arise.

All transactions in foreign currencies are initially recorded in South African Rand, using the spot rate at the date of the transaction.

Foreign currency monetary items at the reporting date are translated using the closing rate. All exchange differences arising on

settlement or translation are recognised in surplus or deficit.


25




NOTES TO THE ANNUAL FINANCIAL STATEMENTS

FIGURES IN RAND

2. Property, plant and equipment

2020 2019

2020 2019

Cost Accumulated 2020

Cost Accumulated

Carrying Cost Accumulated 2019

2020

Carrying Cost Accumulated

2019 Carrying

Carrying

Cost

Accumulated

depreciation

Carrying value

Cost

Accumulated

depreciation

Carrying value

Cost

Accumulated

depreciation

Carrying

value

Cost

Accumulated

depreciation

Carrying

value

IT equipment

66 802 depreciation

66 802 (53 330) 13 value

(53 330) 13 472 66 802 depreciation

472 66 802 (40 961) 25 value

depreciation value

depreciation

(40 961) 25 value 841

841

Office equipment

21 66 141 802 (21 (53 140) 330) 13 472 1 21 66 141 802 (21 (40 140) 961) 25 8411

66 21 802 141 (53 (21 330) 140) 13 472 66 21 802 141 (40 (21 961) 140) 25 841

21

Total

87 141 87 943 (21 943 (74 470) 140) (74 470) 13 473 21 13 473 87 141 87 943 (21 943 (62 101) 140) (62 101) 25 842

21 141 (21 140) 1 21 141 (21 140) 25 842

1

87 943 (74 470) 13 473 87 943 (62 101) 25 842

87 943 (74 470) 13 473 87 943 (62 101) 25 842

Reconciliation of property, plant and equipment - 2020

Opening Depreciation Closing

Opening

Depreciation

Closing

Opening balance Depreciation balance Closing

Opening

balance

Depreciation

balance

Closing

balance

balance

balance 25 841 (12 369) 25 841 (12 369) balance 13 472

IT equipment

13 472

25 8411 (12 369) - 13 472 1

Office equipment

25 841 (12 369) 13 472

25 842 25 842 (12 369) (12 369) 13 473

1 -

13 473

1

25 842 (12 369) 13 473

25 842 (12 369) 13 473

Figures in Rand 2020 2019

FIGURES Figures in Rand 2020 2019

Figures IN RAND in Rand 2020 2020 2019 2019

Figures in Rand 2020 2019

3. Receivables

Other receivables

Receivables

Rent deposit

4. Cash and cash equivalents

143 -

143 2 718 143 989 4 328 077

718 143 989 328 077

-

718 10 000 989 328 10 000 077

2 718 10 000 989 4 328 10 000

077

2 729

10 000 729 132 4 338

10 000

10 000 132 338 10 000 077

077

729 132 338 077

2 729 132 4 338 077

26

Cash and cash equivalents consist of:

Bank balances

5. Payables

Cash and cash equivalents consist of:

Accrued expenses

Credit card

Fees invoiced in advance

Payables

Provision for leave pay

Value-added tax

6. Revenue

Conference revenue

Membership Fees

SCOAP project income

Service fees


6 487 192 5 067 663

487 192 067 663

487 192 067 663

6 487 192 5 067 663

- 218 467

218 467

218 13 435 467

- 218 13 467 435

255 239 24 13 453 435

255 239 - 13 24 435 453

311 255 827 239 56 24 930 453

255 311 239 827 24 56 453 930

151 311 911 827 173 56 374 930

311 151 827 911 173 56 930 374

214 151 401 911 445 173 001 374

151 214 911 401 173 445 374 001

933

214 401 933 378 378 931

445 001

214 401 445 931 001 660

660

933 378 931 660

933 378 931 660

- 1 349 500

349 500

294 940 277 349 045 500

294 940 - 1 277 349 045

13 093 500

294 940 277 045-

294 13 940 093 277 045

2 912 13 093 489 2 857 573

912 13 093 489 857 573

-

3 220

912 489 220 522 4 522 484

857 573

2 912 489 2 484 857 573 118

118

220 522 484 118

3 220 522 4 484 118

Page 16

Page 16

Page 16

Page 16





FIGURES IN RAND 2020 2019

7. Operating (deficit) surplus

Operating (deficit) surplus for the year is stated after accounting for the following:

Operating lease charges

Premises

• Contractual amounts

125 804 121 593

125 804 121 593

Licence costs*

366 125 150 804 294 121 551 593

125 804 121 593

Salaries

2 366 567 150 194 2 294 467 551 817

Travel**

2 103 366 445 150 215 294 410 551

366

567

150

194 2

294

467

551

817

567 194

467 817

2

103

567

445

194 2

215

467

410

817

103 445 215 410

103 445 215 410

*ConsortiaManager fees (2019) have been combined under license costs from the 2020 financial year. The 2019 comparative

has been accordingly reclassified to licence costs.

** Travel includes national and international travel and accommodation costs. Governance costs (2019) were combined under

the relevant travel and accommodation costs in 2020. The 2019 comparative has been accordingly reclassified to travel.

8. Interest Income

Bank accounts

378 496 515 116

378 496 515 116

378 496

378 496

515 116

515 116

9. Taxation

The company enjoys Public Benefit Organisation status in terms of section 10(1)(cN) of the Income Tax Act.

10. Cash generated from (used in) operations

(Deficit) surplus before taxation

Adjustments for:

Depreciation

Interest received

Change in working capital:

Receivables

Payables

(203 503) 579 499

(203 503) 579 499

(203 12 503) 369 5799 466 499

(378

(203

496)

503)

(515

579

116)

499

12 369 9 466

(378 12 369 466

1 608

12

496)

369

(515

(378 496) 945 (1(515 187

9 466

116)

116) 274)

(378

1 718

496) (515

198

116)

1 608 945 (1 187 274) 354)

041 608 1 718 033 945 (1 (2 311 198 187 779) 354) 274)

1 608 945 (1 187 274)

718 (1 198 354)

1 0411 718 033 (2 (1 311 198 779) 354)

041 033 (2 311 779)

1 041 033 (2 311 779)

11. Commitments

Operating leases – as lessee (ConsortiaManager software license and membership fees)

Adjustments for:

Amount in South African Rand (ZAR)

Amount in US Dollar (USD)

Exchange rate

Date of exchange rate

324 365 334 970

324 21 947 365 334 21 308 970

324 14.7793 365 334 15.7204 970

31/12/2020

324

21 947

365

21 947 09/03/2020

334

21 308

970

14.7793 15.7204 21 308

21 947 21 308

31/12/2020 14.7793 09/03/2020 15.7204

14.7793 15.7204

31/12/2020 09/03/2020

31/12/2020 09/03/2020

Operating lease payments represent ConsortiaManager software license and membership fees payable by the company for

leasing software from Subscription People ApS. The company has renewed a 1-year-term lease commencing 1 January 2020.


27






11. Commitments (cont.)

Operating leases – as lessee (premises)

Minimum lease payments due

- within one year

- in second to fifth year inclusive

31

31

500

500

124

124

500

500

- 31

31

500

500

31

31

500

500

156

156

000

000

Operating lease payments represent monthly office rentals payable for office premises in Bergvliet. The lease term is 24,5

months and commenced 15 March 2019. Monthly rental escalates at 5% per annum upon anniversary.

12. Directors’ remuneration

SANLiC director

2020

G B Truran

Emoluments

Emoluments

1

304

304

921

921

2019

G B Truran

Emoluments

Emoluments

1

248

248

729

729

13. eJournals

eJournal deals amounting to R12 597 969 (USD676 952) were routed through the company during the year in its agency

capacity on behalf of members.

14. Sponsoring Consortium for Open Access Publishing in Particle Physics (SCOAP 3 )

SCOAP 3 deals amounting to R622 756 (EUR32 000) were routed through the company during the year in its agency capacity

on behalf of members.

15. Events after the reporting period

Between the end of the reporting period and the date on which the financial statements have been approved, there have

been some subscription cancellations for 2021. The final reduction in subscriptions is not, however, expected to be material.

COVID-19 has created significant disruption and delay to the academic programme of tertiary institutions that comprise the

majority of our membership. The impact of the financial crisis on student funding and associated unrest creates uncertainty

about the timing and severity of future financial challenges.

The directors are not aware of any other material event that occurred after the reporting date and up to the date of this report.

28






FIGURES IN RAND

16. Going concern

The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern.

This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of


At time of issue of these annual financial statements any possible impact on the company’s future operations is difficult to assess

due to the uncertainty of the global and national management of the COVID-19 pandemic and the length of any curtailment

of economic activity. However, the company has sufficient reserves for 25 months of funding, and cash on hand to operate for

21 months.

17. Financial instruments by category

2020

Trade and other receivables


Trade and other payables

2019

Trade and other receivables


Trade and other payables

Financial Financial Total


assets at liabilities at


amortised amortised

amortised amortised

cost cost

cost cost

729 132 729 132

2 729 132 - 2 729 132

487 192 487 192

6 487 192 - 6 487 192

(463 738) (463 738)

- (463 738) (463 738)

216 324 (463 738) 752 586

9 216 324 (463 738) 8 752 586





amortised amortised

amortised amortised

cost cost

cost cost

338 077 338 077

4 338 077 - 4 338 077

067 663 067 663

5 067 663 - 5 067 663

(462 206) (462 206)

- (462 206) (462 206)

405 740 (462 206) 943 534

9 405 740 (462 206) 8 943 534


29




DETAILED STATEMENT OF SURPLUS OR DEFICIT


Revenue

Conference revenue

Membership fees

SCOAP project income

Service fees

Other income

Discount received

Gains on exchange differences

Interest received

Sundry income

Operating expenses (Refer to page 31)

(Deficit) surplus for the year

- 1 349 500

294 940 277 045

13 093 -

2 912 489 2 857 573

3 220 522 4 484 118

9 897 -

- 11 763

378 496 515 116

- 5 629

388 393 532 508

(3 812 418) (4 437 127)

(203 503) 579 499

The supplementary information presented does not form part of the annual financial statements and is unaudited.

30





DETAILED STATEMENT OF SURPLUS OR DEFICIT


Operating expenses

SANLiC - - professional fees fees

Accounting 111 111 159 159 98 98 650 650

Auditor's fee fee - for - for audit audit 44 44 000 000 36 36 500 500

Legal Legal fees fees 21 21 740 740 9 640 9 640

Professional consultancy fees fees 21 21 573 573 4 791 4 791

SANLiC operational fees fees

Business meetings - - 33 33 929 929

Depreciation 12 12 369 369 9 466 9 466

Licence Licence costs costs 366 366 150 150 294 294 551 551

Postage 1 2131 213 679 679

Rent Rent - office - office 125 125 804 804 121 121 593 593

Telephone, fax fax and and internet internet 20 20 495 495 24 24 564 564

SANLiC salaries

Salaries 2 567 2 567 194 194 2 467 2 467 817 817

Staff Staff development 8 499 8 499 - -

SANLiC bank bank charges

Bank Bank costs costs and and foreign foreign exchange 15 15 082 082 22 22 743 743

SANLiC travel travel and and accommodation

Registration - - 11 11 340 340

Travel Travel - - national 103 103 445 445 134 134 356 356

Travel Travel - - international - - 79 79 015 015

Travel Travel - moving - moving costs costs - - 2 039 2 039

SANLiC miscellaneous

Bad Bad debts debts 7 7787 778 - -

Conference expenses 14 14 956 956 929 929 697 697

Counter membership fees fees 12 12 002 002 9 720 9 720

Loss Loss on on exchange differences 313 313 834 834 - -

SARS SARS penalties and and interest interest - - 10 10 865 865

SANLiC office office supplies

Cleaning 1 280 1 280 2 168 2 168

Computer maintenance and and software - - 15 15 620 620

Gifts, Gifts, donations and and meals meals 2 255 2 255 9 345 9 345

Insurance 7 849 7 849 7 516 7 516

Internet Internet service service provider 2 310 2 310 1 800 1 800

Office Office furniture and and equipment 503 503 16 416 416

Perishables 1 006 1 006 1 8141 814

Printing and and publishing 19 19 590 590 60 60 901 901

Stationery 10 10 332 332 19 19 592 592

3 812 3 812 418 418 4 437 4 437 127 127

The supplementary information presented does not form part of the annual financial statements and is unaudited.


31

SOUTH AFRICAN NATIONAL LIBRARY AND

iNFORMATION CONSORTIUM (RF) NPC

Reg No 2003/008624/08 | NPO No 040-845-NPO | VAT No 4560270425

Website: www.sanlic.org.za

Tel: +27 21 2065427

Email: administrator@sanlic.org.za

Address: 5 Faure Close, Diep River, 7800, Cape Town, South Africa

SANLiC Annual Report 2020

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