badisa registration number as non profit organisation

BADISA

Registration number as non profit organisation : 011-891

PROGRAM: ALTA DU TOIT AFTERCARE

ANNUAL FINANCIAL STATEMENTS - 31 MARCH 2020

BADISA

Registration number as non profit organisation : 011-891

PROGRAM: ALTA DU TOIT AFTERCARE

ANNUAL FINANCIAL STATEMENTS - 31 MARCH 2020

INDEX PAGE

Report of the Independent Auditors 1 - 2

Declaration of Management Board 3

Balance Sheet 4

Income Statement 5 - 7

Cash Flow Statement 8

Appendix 1 9

Notes to the Annual Financial Statements 10 - 15

Basis for qualified opinion

Emphasis of matter

Responsibilities of the management board for the annual financial statements

QUALIFIED REPORT OF THE INDEPENDENT AUDITORS TO THE CHAIRMAN AND THE MEMBERS

OF THE MANAGEMENT BOARD OF ALTA DU TOIT AFTERCARE

We have audited the annual financial statements of Alta du Toit Aftercare set out on page 4 - 15, which

comprise the statement of financial position as at 31 March 2020, and the statement of comprehensive

income and statement of cash flows for the year then ended, and notes to the annual financial statements,

including a summary of significant accounting policies.

In our opinion, except for the possible effect of the matter described in the basis for qualified opinion

section of our report, the annual financial statements present fairly, in all material respects, the financial

position of Alta du Toit Aftercare as at 31 March 2020, and its financial performance and cash flows for the

year then ended in accordance with accounting policies as set out in note 1 in the financial statements.

In accordance with similar organisations, it is not feasible for the assosiation to institute accounting controls

over cash collections from donations, fundraisers and membership fees prior to initial entry of the

collections in the accounting records. Accordingly, it was impracticle for us to extend our examination

beyond the receipts actually recorded.

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities

under those standards are further described in the Auditor’s Responsibilities for the Audit of the Annual

Financial Statements section of our report. We are independent of the organisation in accordance with

sections 290 and 291 of the Independent Regulatory Board for Auditors' Code of Professional Conduct for

Registered Auditors (Revised January 2018), parts 1 and 3 of the Independent Regulatory Board for

Auditors' Code of Professional Conduct for Registered Auditors (Revised November 2018) (together the

IRBA Codes) and other independence requirements applicable to performing audits of financial statements

in South Africa. We have fulfilled our other ethical responsibilities, as applicable, 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' Code of Ethics for Professional Accountants and the International Ethics Standards

Board of Accountants' International Code of Ethics for Professional Accountants (including International

Independence Standards) respectively. We believe that the audit evidence we have obtained is sufficient

and appropriate to provide a basis for our qualified opinion.

The management board are responsible for the preparation and fair presentation of the annual financial

statements in accordance with accounting policies as set out in note 1 in the financial statements, and for

such internal control as the management board determine is necessary to enable the preparation of annual

financial statements that are free from material misstatement, whether due to fraud or error.

Without modifying our opinion, we draw your attention to note 9 in die annual financial statements relating

to the COVID-19 epidemic.

Responsibilities of the management board for the annual financial statements (continue)

Auditor's responsibilities for the audit of the annual financial statements.

•

•

•

•

•

…………………………………………………….THERON DU PLESSIS DURBANVILLE INC. 31 July 2020

Chartered Accountants (SA) Durbanville

Registered Auditors

Suzanne Petronella de Wet CA (SA), RA

Director

In preparing the annual financial statements, the management board are responsible for assessing the

program's ability to continue as a going concern, disclosing, as applicable, matters related to going concern

and using the going concern basis of accounting unless the management board either intend to liquidate

the program or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the annual financial statements as a

whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' 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 annual financial statements.

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

judgement and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the annual 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, but not for the purpose of expressing an opinion on the

effectiveness of the program's internal control.Evaluate the appropriateness of accounting policies used and the reasonableness of accounting

estimates and related disclosures made by the management board.

Conclude on the appropriateness of the management board's use of the going concern basis of

accounting and based on the audit evidence obtained, whether a material uncertainty exists related to

events or conditions that may cast significant doubt on the program’s ability to continue as a going

concern. If we conclude that a material uncertainty exists, we are required to draw attention in our

auditors' report to the related disclosures in the annual financial statements or, if such disclosures are

inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the

date of our auditors' report. However, future events or conditions may cause the program to cease to

continue as a going concern.

Evaluate the overall presentation, structure and content of the annual financial statements, including the

disclosures, and whether the annual financial statements represent the underlying transactions and

events in a manner that achieves fair presentation.

We communicate with the management board 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.

ALTA DU TOIT AFTERCARE 4

BALANCE SHEET AT 31 MARCH 2020

2020 2019

Note R R

ASSETS

Non-Current Assets 10,012,509 10,155,477

Fixed assets 2 1,044,222 1,248,644

Investments 3 8,968,287 8,906,833

Current Assets 891,651 917,468

Accounts receivable 4 174,714 651,930

Inventory 10,326 16,590

Bank balance 699,079 239,378

Cash on hand 7,532 9,570

10,904,160 11,072,945

EQUITY AND LIABILITIES

Capital and Reserves 9,499,595 9,576,711

Retained surplus 5 5,444,230 5,902,434

Special Reserves (Appendix 1) 4,055,365 3,674,277

Current Liabilities 1,404,565 1,496,233

Accounts payable 6 1,404,565 1,496,233

10,904,160 11,072,945


INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

2020 2019

Note R R

INCOME

BOARD AND LODGING 9,400,414 8,609,891

Home 8,262,413 7,616,644

Flats 1,138,001 993,247

DONATIONS AND BEQUESTS 3,180,855 4,710,030

Individuals 1,395,970 1,194,345

Congregation 170,370 193,754

Community chest 50,000 -

Inheritance 309,926 -

Goods in kind 29,470 11,570

Businesses 90,804 241,893

Other donations 138,800 22,915

Businesses (for capital expenditure and expenditure capitalised) 995,515 3,045,553

RECOVERY OF EXPENSES 235,525 193,117

FUNDRAISER 888,534 845,902

INCREASE / (DECREASE) IN MARKET VALUE OF SHARES 9,714 581,533

BAD DEBTS RECOVERED 1,653 3,206

INTEREST RECEIVED 487,376 399,603

SALE OF PRODUCTS: GROSS PROFIT 440,876 612,282

INSURANCE CLAIMS 29,276 13,388

PROFIT FROM SALE OF ASSETS - 82,595

SUBTOTAL 14,674,223 16,051,547

Subsidies 7 3,743,100 3,494,283

OPERATING INCOME TOTAL 18,417,323 19,545,830

EXPENSES

SALARIES 9,321,574 8,692,485

Administrative 904,398 453,475

Household 5,679,304 5,382,282

Professional 1,727,985 1,709,333

Medical aid contributions 215,078 246,317

Pension fund contributions 657,150 606,691

Unemployment Insurance Fund (UIF) 82,248 124,177

Compensation commissioner 15,374 30,970

Increase / (Decrease) in leave entitlement 11,900 86,551

Staff Development 24,690 41,490

Staff recruitment 3,447 11,199

Subtotal carried forward 9,321,574 8,692,485


INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2020 (vervolg)

2020 2019

Note R R

Subtotal brought forward 9,321,574 8,692,485

TRANSPORT EXPENSES 66,838 42,257

Repairs and maintenance 61,532 37,815

Insurance and license 5,306 4,442

OFFICE EXPENSES 1,875,797 1,758,673

Municipal services

- Electricity and gas 738,807 553,377

- Water and sanitation 497,538 457,324

- Refuse removal 35,672 33,913

- Rates and taxes 55,868 -

Advertising - 260

Printing and stationary 64,654 47,938

Levies, registrations and affiliations 53,687 50,651

Equipment rental 120,309 219,717

Telephone and postage 121,494 130,386

Insurance 138,218 119,527

Replacements 14,841 90,489

Computer expenses 24,789 25,871

Clothing 9,920 29,220

LAND AND BUILDINGS 851,395 1,521,191

Maintenance 493,459 1,229,121

Security 357,936 292,070

HOUSEHOLD EXPENSES 2,630,909 2,394,309

Cleaning 34,022 53,506

Groceries 2,142,444 2,031,517

Linen 17,359 1,070

Medical 143,061 23,820

Education and relaxation 19,199 16,930

Allowance 175,968 175,978

Replacements 3,908 3,260

Transport 88,837 73,826

Consumable equipment 261 -

Household gas 5,850 14,402

Subtotal carried forward 14,746,513 14,408,915


INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2020 (vervolg)

2020 2019

Note R R

Subtotal brought forward 14,746,513 14,408,915

SPECIAL SERVICES 1,962,982 1,940,615

Bank charges 102,774 91,262

Fundraising 613,031 760,102

Consultation and professional fees 216,850 132,794

Bad debts 16,521 99,178

Public relations and marketing 4,325 7,903

Audit fees 19,476 18,300

Interest paid 11,686 -

Discount granted 897,319 826,421

Staff welfare 4,780 4,655

Fees received through donations 76,220 -

EXPENSES BEFORE DEPRECIATION 16,709,495 16,349,530

DEPRECIATION 237,479 251,285

Furniture and equipment 74,376 71,173

Computer equipment 75,822 79,169

Motor vehicles 87,281 100,943

OPERATING EXPENSES TOTAL 16,946,974 16,600,815

NET SURPLUS / (DEFICIT) FOR THE YEAR

OPERATING SURPLUS / (DEFICIT) FOR THE YEAR 1,470,349 2,945,015

CAPITAL EXPENDITURE (1,525,309) (2,924,653)

OPERATING / (DEFICIT) AFTER CAPITAL EXPENDITURE (54,960) 20,362

MOVEMENT IN SPECIAL RESERVE FUND

Recoveries from: 28,965 -

Transfer of bank charges for special reserve funds 28,965 -

Contributions to: (410,052) (19,779)

- Maintenance Fund (72,574) (120,900)

- Aid Fund (172,738) 164,073

- Transfer of market value adjustment on special reserve funds (6,486) -

- Transfer of interest on special reserve funds (158,254) (62,952)

NET SURPLUS / (DEFICIT) FOR THE YEAR (436,047) 583


CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

2020 2019

Note R R

CASH FLOW FROM OPERATING ACTIVITIES 552,174 1,001,892

Cash receipts from clients and funders 18,874,905 19,830,919

Cash payments to employees and suppliers (18,798,421) (19,228,630)

Cash utilised by operating activities 1 76,484 602,289

Investment income 487,376 399,603

Interest paid (11,686) -

CASH FLOW FROM INVESTING ACTIVITIES (94,511) (896,237)

Fixed assets purchased (33,057) (266,777)

Proceeds from sale of Assets - 85,000

Decrease / (Increase) in investments (61,454) (714,460)

NET INCREASE / (DECREASE) IN CASH AND CASH 457,663 105,655

EQUIVALENTS

CASH AND CASH EQUIVALENTS BEGINNING OF THE YEAR 248,948 143,293

CASH AND CASH EQUIVALENTS END OF THE YEAR 706,611 248,948

1

Net surplus / (deficit) for the year (436,047) 583

Adjustments for:

- Depreciation 237,479 251,285

- Investment income (487,376) (399,603)

- Gain on sale of assets - (82,595)

- Pay interest 11,686 -

- Last year correction (22,157) -

- Movements in reserve Fund 381,087 19,779

Operating income before working capital changes (315,328) (210,551)

Changes in working capital

- (Increase) / Decrease in receivables 477,216 524,112

- (Increase) / Decrease in inventories 6,264 (5,555)

- Increase / (Decrease) in creditors (91,668) 294,283

Cash utilised by operating activities 76,484 602,289

RECONCILIATION OF CASH UTILISED BY

OPERATING ACTIVITIES WITH NET SURPLUS /

(DEFICIT) FOR THE YEAR


RESERVE FUNDS (APPENDIX 1)

Mainte-

nance Aid 2020 2019

Fund Fund Total Total

R R R R

Balance beginning of the year 2,621,420 1,052,857 3,674,277 3,654,498

Add: 891,830 1,741,345 2,633,175 1,369,779

Contributions 792,179 1,676,256 2,468,435 1,306,827

Adjustment in Market Value 4,564 1,922 6,486 -

Interest 95,087 63,167 158,254 62,952

Less: (739,982) (1,512,105) (2,252,087) (1,350,000)

Drawings (719,604) (1,503,518) (2,223,122) (1,350,000)

Bank charges (20,378) (8,587) (28,965)

Balance end of year 2,773,268 1,282,097 4,055,365 3,674,277


NOTES TO THE FINANCIAL STATEMENTS

1. ACCOUNTING POLICIES

1.1 Basis of presentation

1.2 Fixed assets

Fixed assets are tangible items that:

•

• expected to be used in more than one period.

• Furniture and equipment - 10% according to the diminishing balance method; • Computer equipment - 33.33%, according to the straight-line method;

In addition to the above:

•

•

•

1.3

Financial instruments are initially measured at the transaction price. This includes transaction costs,

except for financial instruments measured at fair value through profit or loss.

Financial instruments at amortised cost

Vehicles and equipment are carried at cost less accumulated depreciation and accumulated

impairment losses. Fixed assets received as donations or bequests, are stated at nominal value.

Cost includes all costs incurred to deliver to the place the asset and the state that is necessary to

enable it to function in the manner contemplated by management.

Held for use in the production or supply of goods and services, for rental to others or for

administrative purposes; and

• Vehicles - 20% according to the diminishing balance.

Depreciation on vehicles and equipment are provided, using methods that are appropriate to write off

the depreciable amount of the assets over their economic life. The following depreciation and

economic lives are allocated to the respective assets:

The financial statements have been prepared on the historical cost basis and are presented in South

African Rand. The accounting policies are consistent with those of the previous period. The following

are the principal accounting policies used.

Gains and losses on sales are determined by comparing proceeds with the carrying amount and are

recognized in surplus or deficit in the period.

Financial instruments

Initial measurement

Purchases of tangible assets with a cost of R3,000 and less recognized as incurred an expense in

the period;Purchases of tangible assets with a cost of between R3,000 and R7,000 is capitalized, but the full

amount will be written off as depreciation in the year of purchase;

Capital improvements to buildings under lease agreements are recognised directly in the surplus or

deficit for the year in which it incurred.

Debt securities, including loans payable and receivable and trade receivables and trade payables are

then measured at amortized cost using the effective interest rate method. Debt securities that are

classified as current assets or current liabilities are measured at the undiscounted amount of cash

received or expected to be paid.

At the end of each reporting period the carrying amount of assets held are reviewed in this category, to

determine whether there is objective evidence of impairment. If so, it is recognized as an impairment

loss.



1.3

Obligations to get a loan is measured at cost less any impairment.

Financial instruments at fair value

All other financial instruments are measured at fair value through surplus or defecit.

1.4 Special reserve funds

1.5 Short-term employee benefits

1.6 Goverment grants

1.7 Income recognition

Other income earned is recognized on the following bases:

•

• Donations, bequests and fundraising - when the amount is received.

• Rent / accommodation income - as it accrues, according to the agreement conditions.

• Admin and service fees - in the period the service is provided.

1.8 Borrowing costs

Borrowing costs are recognised as an expense in the period in which they are incurred.

Financial instruments (Continued)

Revenue is measured at the fair value of the consideration received or receivable and represents the

amounts receivable for goods and services provided in the normal course of business, net of trade

discounts and volume rebates, and value added tax.

Revenue is recognised upon delivery of products and customer acceptance, net of value added tax

and discounts.

Interest income as it accrues (taking into account effective yield on asset) unless collectability is in

doubt.

Financial instruments at cost

Equity instruments that are not publicly traded and whose fair value otherwise can be reliably

measured, are measured at cost less any impairment. These include equities held in unlisted

investments.

The values shown represent capital and accumulated investment return of the funds of which the

whole yield may be used for specified objectives.

The cost of short-term employee benefits (those payable within 12 months after the service is rendered

such as paid leave) is recognized in the period in which services are delivered and are not discounted.

Grants that do not impose specified future performance conditions are recognised in income when the

grant proceeds are receivable. Grants that impose specified future performance conditions are

recognised in income only when the performance conditions are met. Grants received before the

revenue recognition criteria are satisfied are recognised as a liability. Grants are measured at the fair

value of the asset received or receivable.



1.9 Impairment of assets

At each reporting date evaluating is done on any indication whether there has been a drop in an

asset's value. If there is any indication that an asset's value may have declined, then the recoverable

amount for the individual asset is determined. If the recoverable amount of an individual asset can not

be determined, the recoverable amount of the cash-generating unit to which the asset belongs, is

determined.

If an impairment is therefore reversed, the carrying amount of the asset (or group of related assets) is

amended to its recoverable amount, but no more than the amount that would have been determined if

no impairment adjustments were made for the asset ( or asset group) in prior years. The reversal of an

impairment is recognised immediately in surplus or deficit.


NOTES TO THE ANNUAL FINANCIAL STATEMENTS

2020 2019

R R

2 FIXED ASSETS

2.1 FURNITURE AND EQUIPMENT

Cost price beginning of the year 1,334,087 1,197,843

Plus: Purchases 17,906 136,244

Cost price end of the year 1,351,993 1,334,087

Less: Accumulated depreciation (671,560) (597,184)

Carrying value end of the year 680,433 736,903

2.2 MOTOR VEHICLES

Cost price beginning of the year 1,005,243 874,710

Plus: Purchases - 130,533




2.3 COMPUTERS

Cost price beginning of the year 308,371 308,371

Plus: Purchases 15,151 -

Cost price end of the year 323,522 308,371.000



2.4 LAND AND BUILDINGS

TOTAL ASSETS

Cost price beginning of the year 2,647,701 2,380,924

Plus: Purchases 33,057 266,777


Less: Accumulated depreciation (1,636,536) (1,399,057)

Carrying value end of the year 1,044,222 1,248,644

3 INVESTMENTS

Sanlam Unit Trust * 8,353,445 6,028,517

Absa Bank Investments 589,316 2,841,267

450 Samlam shares * 22,991 33,192

115 RMI Holdings shares * 2,535 3,856

8,968,287 8,906,833

* The investment is shown at market value. - -

The Land and Buildings of Alta du Toit Aftercare is the property of

the Goeie Hoop Behuisingsmaatskappy (GHBM) and are shown

as such in their accounting records.



2020 2019

R R

3 INVESTMENTS (Continued)

Apportioned as follows:

Alta du Toit Aftercare 4,912,922 5,353,456

Special Funds (See Appendix 1) 4,055,365 3,553,377

Maintenance Fund 2,773,268 2,500,520

Aid Fund 1,282,097 1,052,857

8,968,287 8,906,833

4 ACCOUNTS RECEIVABLE

Trade receivables 154,763 325,274

VAT Receivable - 90,160

Prepaid expenses 19,951 8,945

Resident moneys receivable - 22,157

Provision for income receivable - 205,394

174,714 651,930

5 RETAINED SURPLUS

Balance beginning of the year 5,902,434 5,901,851

Prior year adjustment (22,157) -

Surplus / (deficit) for the year (436,047) 583

Balance end of the year 5,444,230 5,902,434

6 ACCOUNTS PAYABLE

Accounts payable 167,219 627,006

Prepaid board and lodging 470,343 183,272

Provision for leave 281,752 295,492

VAT payable 32,545 -

Provision - City of Cape Town - 350,179

Resident Moneys - 5,080

Badisa Management programme - 204

Donations receivable 425,006 35,000

Staff savings payable 27,700 -

1,404,565 1,496,233



2020 2019

R R

7 SUBSIDY

- Department of Social Development 3,743,100 3,494,283

3,743,100 3,494,283

(Subsidy in respect of April 2019 - March 2020)

Department of Health distributed as follows:

Provincial administration

- Western Cape 3,743,100 3,494,283

Department of Social Development 3,743,100 3,494,283

8 RESIDENT MONEYS

Trust funds on hand at 31 March 2020 represented by:

Residents funds 482,235 489,362

House Fund 12,926 12,519

495,161 501,882

and invested as follows:

Bank balance and cash 495,161 501,882

495,161 501,882

9 EVENTS AFTER REPORTING PERIOD

At year-end, the South African government declared a state of disaster, to help fight the COVID-19

epidemic. A 21-day national lockdown was announced by the president and was implemented on the

27th of March 2020. On 9 April 2020, the president announced that the lockdown will be extended for

an additional 14 days and on 23 April it was announced that the economy will be opened on a risk-

based approach from the 1st of June 2020.

The current situation had far-reaching effects on the economy of which the future consequences are

still unknown.

The management board considered the impact of the COVID-19 pandemic on the going concern of the

program and the program is affected as the operating activities partially had to stop. As an result of the

aforementioned, a reduction of funds through donations and fundraising is realised.

The management board is monitoring the impact that the pandemic has on the program on an

continuous basis and is positive that additional funding from donors, as well as the application of

available reserves, will maintain the going concern of the program.

badisa registration number as non profit organisation

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