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Annual Performance Report for 2016/17 LIMPOPO TOURISM AGENCY

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LIMPOPO TOURISM AGENCY

Annual Report

2016 – 2017


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TABLE OF CONTENTS

PART A

GENERAL INFORMATION

Public Entity Entity’s General Information 5

List of Abbreviations/Acronyms 6-7

Strategic Overview 8-9

Legislative and Other Mandates 9-10

Organisational Structure 11

MEC’s Foreword 12-13

Overview by the Chairperson 14-16

Chief Executive Officer’s Statement 17-19

PART B

PERFORMANCE INFORMATION

Statement of Responsibility for Performance 22

Information

Auditor General’s Report Predetermine 23

Objectives

Overview of the Public Entity’s Performance 23

Strategic Outcome Oriented Goals 24

Performance Information by Programmes 25-38

Summary of Financial Information 38

PART C

GOVERNANCE

Introduction 41

Portfolio Committees 41


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Executive Authority 41

Accounting Authority 41-46

Risk Management 46

Internal Control Unit 46

Risk and Audit Committee 47

Compliance with Laws and Regulations 48

Fraud and Corruption 48

Minimising Conflict of Interest 49

Code of Conduct 49

Health, Safety and Environmental Issues 49

Company Secretary 49

Social Responsibility 49

Risk and Audit Committee Report 49-52

PART D

HUMAN RESOURCES MANAGEMENT

Introduction 54

Human Resources Oversight Statistics 54-57

PART E

FINANCIAL INFORMATION

Statement of Responsibility 59

Report of the Chief Executive Officer 60-61

Report of the External Auditor 62-67

Annual Financial Statements 68-114


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PART AGENERAL INFORMATION


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1. LIMPOPO TOURISM AGENCY’S GENERAL INFORMATION

REGISTERED NAME: Limpopo Tourism and Parks

REGISTRATION NUMBER (if applicable): Schedule 3C PFMA

PHYSICAL ADDRESS: Southern Gateway Ext. 4, N1 Main Road Polokwane 0700 POSTAL ADDRESS: P. O. Box 2814

POLOKWANE

0700

TELEPHONE NUMBER/S: +27 15 293 3600

FAX NUMBER: +27 15 293 3655

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS: www.golimpopo.com

EXTERNAL AUDITORS: Auditor General South Africa

BANKERS: ABSA Bank Limited

COMPANY SECRETARY TG Kotsedi


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2. LIST OF ABBREVIATIONS/ACRONYMS

B-BBEE Broad-Based Black Economic Empowerment

BEE Black Economic Empowerment

CEO Chief Executive Officer

COGTA Cooperative Governance and Traditional Affairs

CSI Corporate Social Investment

FDI Foreign Direct Investment

LEDET Limpopo Economic Development Environment and Tourism

LEGDP Limpopo Employment Growth and Development Programme

LTA Limpopo Tourism Agency

LWR Limpopo Wildlife Resorts

MEC Member of Executive Council

MOU Memorandum of Understanding

NCB National Convention Bureau

NDT National Department of Tourism

NGO Non-governmental organisation

NTSS National Tourism Sector Strategy

PCB Provincial Convention Bureau

PPP Public-Private Partnership

SADC Southern African Development Community

SALGA South African Local Government Association

SAT South African Tourism

SETA Sector Education and Training Authority

SMEs Small and Medium Enterprises

SMMEs Small, Medium and Micro-Enterprises

Stats SA Statistics South Africa

TFCA Trans-frontier Conservation Area

TFDS Total Foreign Direct Spend

TSA Tourism Satellite Account

VFR Visiting Friends and Relatives


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2. LIST OF ABBREVIATIONS/ACRONYMS

B-BBEE Broad-Based Black Economic Empowerment

BEE Black Economic Empowerment

CEO Chief Executive Officer

COGTA Cooperative Governance and Traditional Affairs

CSI Corporate Social Investment

FDI Foreign Direct Investment

LEDET Limpopo Economic Development Environment and Tourism

LEGDP Limpopo Employment Growth and Development Programme

LTA Limpopo Tourism Agency

LWR Limpopo Wildlife Resorts

MEC Member of Executive Council

MOU Memorandum of Understanding

NCB National Convention Bureau

NDT National Department of Tourism

NGO Non-governmental organisation

NTSS National Tourism Sector Strategy

PCB Provincial Convention Bureau

PPP Public-Private Partnership

SADC Southern African Development Community

SALGA South African Local Government Association

SAT South African Tourism

SETA Sector Education and Training Authority

SMEs Small and Medium Enterprises

SMMEs Small, Medium and Micro-Enterprises

Stats SA Statistics South Africa

TFCA Trans-frontier Conservation Area

TFDS Total Foreign Direct Spend

TSA Tourism Satellite Account

VFR Visiting Friends and Relatives


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3. STRATEGIC OVERVIEW 3.1. Vision To position Limpopo as a leading tourism destination in Southern Africa. 3.2. Mission To promote and offer a sustainable and diverse tourism experience through strategic marketing (destination marketing) and support and facilitate tourism development programmes, collaborations with stakeholders and sector transformation. 3.3. Values

Core Value Description

Integrity Conduct beyond reproach will be deployed by staff

Respect Display respect in dealing with all stakeholders, be they colleagues, other departments, business partners in the tourism industry or to Limpopo, which is best displayed through effective listening and communication, as well as seeking first to understand them before being understood.

Excellence The entire LTA organisation, shall continually strive for service excellence delivery towards all our tourists

Responsibility All tourism development, management and activities shall deliver on all areas of economic, social, environmental and personal, growth sustainability

Communication LTA will strive to communicate effectively and efficiently within and outside the organisation

Accountability Obligation of an individual or organisation to account for its actions (Financials, Performance and Social), accepts responsibility for their disclosed results in a transparent manner.

3.4. Strategic outcome orientated goals Effective and efficient administrative support in the organization; To provide efficient and effective human resources support services; To provide efficient and effective finance and support services; To initiate product development, tourism investment, strategic partnerships and provide quality hospitality services and To position Limpopo as a leading tourism destination in Southern Africa.

4. LEGISLATIVE AND OTHER MANDATES LTA is a Schedule 3C entity (PFMA) reporting to Limpopo Department of Economic Development, Environment and Tourism (LEDET) and its programmes and activities are guided by a number of constitutional and legislative mandates as follows:

Constitutional mandates:

National Tourism Sector Strategy (NTSS) Global Competitiveness Strategy Airlift Strategy Tourism Act 72/1993, Tourism Second Amendment Act 70/2000 Tourism Development Strategy Tourism Heritage and Culture Strategy Rural Tourism Strategy. The following Acts and Strategies are relevant at provincial levels: Limpopo Tourism Act 2/2009 Limpopo Environmental Management Act 7/2003 Limpopo Employment and Development Strategy Limpopo Marketing Strategy


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3. STRATEGIC OVERVIEW 3.1. Vision To position Limpopo as a leading tourism destination in Southern Africa. 3.2. Mission To promote and offer a sustainable and diverse tourism experience through strategic marketing (destination marketing) and support and facilitate tourism development programmes, collaborations with stakeholders and sector transformation. 3.3. Values

Core Value Description

Integrity Conduct beyond reproach will be deployed by staff

Respect Display respect in dealing with all stakeholders, be they colleagues, other departments, business partners in the tourism industry or to Limpopo, which is best displayed through effective listening and communication, as well as seeking first to understand them before being understood.

Excellence The entire LTA organisation, shall continually strive for service excellence delivery towards all our tourists

Responsibility All tourism development, management and activities shall deliver on all areas of economic, social, environmental and personal, growth sustainability

Communication LTA will strive to communicate effectively and efficiently within and outside the organisation

Accountability Obligation of an individual or organisation to account for its actions (Financials, Performance and Social), accepts responsibility for their disclosed results in a transparent manner.

3.4. Strategic outcome orientated goals Effective and efficient administrative support in the organization; To provide efficient and effective human resources support services; To provide efficient and effective finance and support services; To initiate product development, tourism investment, strategic partnerships and provide quality hospitality services and To position Limpopo as a leading tourism destination in Southern Africa.

4. LEGISLATIVE AND OTHER MANDATES LTA is a Schedule 3C entity (PFMA) reporting to Limpopo Department of Economic Development, Environment and Tourism (LEDET) and its programmes and activities are guided by a number of constitutional and legislative mandates as follows:

Constitutional mandates:

National Tourism Sector Strategy (NTSS) Global Competitiveness Strategy Airlift Strategy Tourism Act 72/1993, Tourism Second Amendment Act 70/2000 Tourism Development Strategy Tourism Heritage and Culture Strategy Rural Tourism Strategy. The following Acts and Strategies are relevant at provincial levels: Limpopo Tourism Act 2/2009 Limpopo Environmental Management Act 7/2003 Limpopo Employment and Development Strategy Limpopo Marketing Strategy


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Tourism Growth Strategy

Legislative mandates

The functions and powers of the Limpopo Tourism Agency are:

Develop and implement a tourism marketing strategy within the framework of the provincial tourism strategies; Undertake and facilitate tourism research; Support tourism transformation and capacity building programmes; Enhance and enable tourism investment opportunities on provincial nature reserves; Enhance the integration of tourism programmes through the establishment of formal partnerships with municipalities; Initiate tourism product development in provincial nature reserves; Subject to the PFMA and other applicable legislation, establish strategic partnerships with community co-operatives, organizations,

government structures and tourism organizations for enhancing tourism marketing; Establish and maintain a database containing information relating to: o Existing tourist attractions, infrastructure, facilities, services, location and access; o Natural and cultural attractions that may be developed as tourist attractions in the province; and o New areas of tourism activity and potential sites for these activities

Advise the MEC on any matter relating to the tourism industry; and perform any other function the MEC may assign or delegate to the Agency

5. ORGANISATIONAL STRUCTURE


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Tourism Growth Strategy

Legislative mandates

The functions and powers of the Limpopo Tourism Agency are:

Develop and implement a tourism marketing strategy within the framework of the provincial tourism strategies; Undertake and facilitate tourism research; Support tourism transformation and capacity building programmes; Enhance and enable tourism investment opportunities on provincial nature reserves; Enhance the integration of tourism programmes through the establishment of formal partnerships with municipalities; Initiate tourism product development in provincial nature reserves; Subject to the PFMA and other applicable legislation, establish strategic partnerships with community co-operatives, organizations,

government structures and tourism organizations for enhancing tourism marketing; Establish and maintain a database containing information relating to: o Existing tourist attractions, infrastructure, facilities, services, location and access; o Natural and cultural attractions that may be developed as tourist attractions in the province; and o New areas of tourism activity and potential sites for these activities

Advise the MEC on any matter relating to the tourism industry; and perform any other function the MEC may assign or delegate to the Agency

5. ORGANISATIONAL STRUCTURE


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6. MEC’S FOREWORD Name: Mr. Seaparo Sekoati Title: Member of the Executive Council for Economic Development, Environment and Tourism

We once again take great pleasure in reporting on the performance and activities of the Limpopo Tourism Agency (LTA) for the financial year 2016/17. Gone are the days when tourism was considered a “by the way” sector as far as its contribution to economy was concerned. To date tourism is one of the major contributors of economy as espoused by the National Development Plan and Limpopo Development Plan.

We are grateful to report that Limpopo recorded an increase in tourist arrivals to the province from 1.3 million in 2015 to 1.5 million in 2016, an increase of 0.2 million arrivals. The total number of domestic trips by source markets also increased from 4.7 million in 2015 to 6.3 million in 2016 (1.6 million increase). The province’s total number of domestic trips by destination markets also showed a massive increase from 5.6 million in 2015 to 8.3 million in 2016 (2.7 million increase).

While Limpopo has reclaimed its number one spot in respect of domestic tourism in the country, the Agency still has a daunting task of deriving value from the bigger segment of visiting friends and relatives (VFR) by ensuring that when these people are in the province, they increase their spend and length of stay, which is what tourism is all about.

I am delighted about the level of commitment from the Board, whose mandate was clearly outlined upon appointment. Key among these were, developing a new marketing strategy, which was done. The Board has developed a new structure for implementation during this current financial year and implemented the EXCO Resolution No. 7 of 2015/16 of transferring Limpopo Wildlife Resorts (LWR) to LEDET. LTA is now left with only one mandate of marketing Limpopo Province as a tourist destination of choice.

Limpopo Tourism continues to be on the growth trajectory despite the unpredictable and volatile economic situation in the world, tourism as a sector has continued to display resilience and growth nationally and Limpopo is a leader amongst all the provinces in the country.

We wish to congratulate the Board for receiving an unqualified audit opinion. In the Board’s quest to receive a clean audit report, it will be prudent for it to pay attention to compliance and governance aspects as that will be critical for it to conduct its oversight and other fiduciary responsibilities to ensure further improvement on the Auditor General’s opinion. Clean audit is achievable.

____________________________ Seaparo Sekoati

MEC for Economic Development, Environment and Tourism


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6. MEC’S FOREWORD Name: Mr. Seaparo Sekoati Title: Member of the Executive Council for Economic Development, Environment and Tourism

We once again take great pleasure in reporting on the performance and activities of the Limpopo Tourism Agency (LTA) for the financial year 2016/17. Gone are the days when tourism was considered a “by the way” sector as far as its contribution to economy was concerned. To date tourism is one of the major contributors of economy as espoused by the National Development Plan and Limpopo Development Plan.

We are grateful to report that Limpopo recorded an increase in tourist arrivals to the province from 1.3 million in 2015 to 1.5 million in 2016, an increase of 0.2 million arrivals. The total number of domestic trips by source markets also increased from 4.7 million in 2015 to 6.3 million in 2016 (1.6 million increase). The province’s total number of domestic trips by destination markets also showed a massive increase from 5.6 million in 2015 to 8.3 million in 2016 (2.7 million increase).

While Limpopo has reclaimed its number one spot in respect of domestic tourism in the country, the Agency still has a daunting task of deriving value from the bigger segment of visiting friends and relatives (VFR) by ensuring that when these people are in the province, they increase their spend and length of stay, which is what tourism is all about.

I am delighted about the level of commitment from the Board, whose mandate was clearly outlined upon appointment. Key among these were, developing a new marketing strategy, which was done. The Board has developed a new structure for implementation during this current financial year and implemented the EXCO Resolution No. 7 of 2015/16 of transferring Limpopo Wildlife Resorts (LWR) to LEDET. LTA is now left with only one mandate of marketing Limpopo Province as a tourist destination of choice.

Limpopo Tourism continues to be on the growth trajectory despite the unpredictable and volatile economic situation in the world, tourism as a sector has continued to display resilience and growth nationally and Limpopo is a leader amongst all the provinces in the country.

We wish to congratulate the Board for receiving an unqualified audit opinion. In the Board’s quest to receive a clean audit report, it will be prudent for it to pay attention to compliance and governance aspects as that will be critical for it to conduct its oversight and other fiduciary responsibilities to ensure further improvement on the Auditor General’s opinion. Clean audit is achievable.

____________________________ Seaparo Sekoati

MEC for Economic Development, Environment and Tourism


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7. CHAIRPERSON’S OVERVIEW Name: Mr. Khiba Andrew Dipela Title: Board Chairperson of Limpopo Tourism Agency

The success of Limpopo Tourism Agency Board (LTAB) lies in the effective and efficient application of the corporate governance principles and practices that successful entities adhere to. The LTAB’s character can be described by three words, namely, expertise, quality and vigour. It must be reported that 2016/17 was another eventful financial year. True to its character, the Board got the ball rolling and put its shoulder to the wheel. The Board convened a successful media breakfast to make known its marketing strategy, aligned to Limpopo Tourism Act 2/2009. This was a critical period that saw the Board implement its singular mandate of promoting Limpopo Province without Limpopo Wildlife Resorts (LWR) as captured above. The Board’s primary objective is to oversee provision of sustainable tourism development; management and promotion thereof as well stimulate investment in the Province. It is against this background that the LTA Board continues to make concerted efforts to transform the tourism industry in the province in an endeavour to fight the triple challenges of poverty, unemployment and inequality. The Board has never been oblivious of this critical challenge. Our commitment to transform the tourism industry at the level of previously disadvantaged members of the society can be demonstrated by the fact that LTA continues to mentor and incubate emerging entrepreneurs by guiding them through among others the Lilizela Awards. The case in point in this regard is Besty Travel, which is the current overall winner of the Lilizela Award in the Emerging Tourism Entrepreneur of the Year Award (ETEYA) during the period under review. The Board accompanied the shareholder, the Honourable Member of the Executive Council, Mr. Seaparo Sekoati during his outreach programme in all the districts of the province talking to stakeholders including the tourism industry about opportunities in the various portfolios of the department. This process emanated from the announcements in the department’s budget speech by the shareholder. One of the strategic challenges that the Board continued to be faced with was the acknowledgement of the critical importance of Cultural and Heritage Tourism aspect symbiotically related to Rural Tourism Strategy. This could be an enormous competitive advantage to the province given the rich mix of culture.

It is imperative to note that the Board has approved the top organisational structure for its implementation in the next financial year, 2017/18. Management has been directed to complete the entire structure for implementation in the next financial year. The Board also commenced with a consultative process of engaging with stakeholders in all the districts of the province. Board members were deployed at various districts where such stakeholder engagement forums were held to interface with them. Worth noting is the fact that the Board was implored by the Shareholder for the Telkom Supersport Golf Shootout now called BCX Supersport Shootout to be hosted in Limpopo. The Board is happy to announce that measures are explored for the event to be hosted in the Province over the next three years from 2016/17 until 2018/19 financial year. To this end, LTA Board signed an agreement with Legend Foundation to raise funds for any charity of LTA’s choice during this spectacle. Limpopo Tourism Agency will continue to protect its international market share whilst giving greater focus to marketing strategy guiding prescripts. The domestic market has given the entity much to think about hence the entity is now focusing most of its attention to domestic tourism. The statistics are well in favour of the local and regional markets. The following policy directives still remain paramount to Limpopo Tourism Agency (LTA):- Clean Audit, Integration of all the entity’s systems Exceptional performance Fighting the triple challenges, Strong partnership with private sector and Local Government, Encouraging grading of tourism facilities, Intensify efforts in the area of research, Grow tourism, Market intelligence. The Board has also experienced sombre moments especially during the loss of the departed soul of Kgošigadi Maponye Edith Nchabeleng, who was a member of the LTA Board. May her soul find eternal peace! I wish to, on behalf of LTA Board and staff, thank the shareholder, the MEC for Limpopo Economic Development, Environment and Tourism, Mr. Seaparo Sekoati, and management and staff of his department for the support, guidance and space provided for LTA Board to fulfil its mandate. I wish to on behalf of the LTA Board and staff send our gratitude to media both local/national and international for having demonstrated unparalleled commitment to the course of promoting our beautiful province, its people with diverse cultures, icons, abundant wildlife and attractions. We would not have done justice if we did not thank the tourism industry leaders for their support and advice as we could not have succeeded on our own. We will continue to seek wisdom on how to lead while they drive tourism and make it succeed.


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7. CHAIRPERSON’S OVERVIEW Name: Mr. Khiba Andrew Dipela Title: Board Chairperson of Limpopo Tourism Agency

The success of Limpopo Tourism Agency Board (LTAB) lies in the effective and efficient application of the corporate governance principles and practices that successful entities adhere to. The LTAB’s character can be described by three words, namely, expertise, quality and vigour. It must be reported that 2016/17 was another eventful financial year. True to its character, the Board got the ball rolling and put its shoulder to the wheel. The Board convened a successful media breakfast to make known its marketing strategy, aligned to Limpopo Tourism Act 2/2009. This was a critical period that saw the Board implement its singular mandate of promoting Limpopo Province without Limpopo Wildlife Resorts (LWR) as captured above. The Board’s primary objective is to oversee provision of sustainable tourism development; management and promotion thereof as well stimulate investment in the Province. It is against this background that the LTA Board continues to make concerted efforts to transform the tourism industry in the province in an endeavour to fight the triple challenges of poverty, unemployment and inequality. The Board has never been oblivious of this critical challenge. Our commitment to transform the tourism industry at the level of previously disadvantaged members of the society can be demonstrated by the fact that LTA continues to mentor and incubate emerging entrepreneurs by guiding them through among others the Lilizela Awards. The case in point in this regard is Besty Travel, which is the current overall winner of the Lilizela Award in the Emerging Tourism Entrepreneur of the Year Award (ETEYA) during the period under review. The Board accompanied the shareholder, the Honourable Member of the Executive Council, Mr. Seaparo Sekoati during his outreach programme in all the districts of the province talking to stakeholders including the tourism industry about opportunities in the various portfolios of the department. This process emanated from the announcements in the department’s budget speech by the shareholder. One of the strategic challenges that the Board continued to be faced with was the acknowledgement of the critical importance of Cultural and Heritage Tourism aspect symbiotically related to Rural Tourism Strategy. This could be an enormous competitive advantage to the province given the rich mix of culture.

It is imperative to note that the Board has approved the top organisational structure for its implementation in the next financial year, 2017/18. Management has been directed to complete the entire structure for implementation in the next financial year. The Board also commenced with a consultative process of engaging with stakeholders in all the districts of the province. Board members were deployed at various districts where such stakeholder engagement forums were held to interface with them. Worth noting is the fact that the Board was implored by the Shareholder for the Telkom Supersport Golf Shootout now called BCX Supersport Shootout to be hosted in Limpopo. The Board is happy to announce that measures are explored for the event to be hosted in the Province over the next three years from 2016/17 until 2018/19 financial year. To this end, LTA Board signed an agreement with Legend Foundation to raise funds for any charity of LTA’s choice during this spectacle. Limpopo Tourism Agency will continue to protect its international market share whilst giving greater focus to marketing strategy guiding prescripts. The domestic market has given the entity much to think about hence the entity is now focusing most of its attention to domestic tourism. The statistics are well in favour of the local and regional markets. The following policy directives still remain paramount to Limpopo Tourism Agency (LTA):- Clean Audit, Integration of all the entity’s systems Exceptional performance Fighting the triple challenges, Strong partnership with private sector and Local Government, Encouraging grading of tourism facilities, Intensify efforts in the area of research, Grow tourism, Market intelligence. The Board has also experienced sombre moments especially during the loss of the departed soul of Kgošigadi Maponye Edith Nchabeleng, who was a member of the LTA Board. May her soul find eternal peace! I wish to, on behalf of LTA Board and staff, thank the shareholder, the MEC for Limpopo Economic Development, Environment and Tourism, Mr. Seaparo Sekoati, and management and staff of his department for the support, guidance and space provided for LTA Board to fulfil its mandate. I wish to on behalf of the LTA Board and staff send our gratitude to media both local/national and international for having demonstrated unparalleled commitment to the course of promoting our beautiful province, its people with diverse cultures, icons, abundant wildlife and attractions. We would not have done justice if we did not thank the tourism industry leaders for their support and advice as we could not have succeeded on our own. We will continue to seek wisdom on how to lead while they drive tourism and make it succeed.


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It will be inept of myself not to highlight that whilst it is the ultimate goal of this entity to achieve a clean audit, the strides made in movement from a qualified audit opinion during the previous year to an unqualified audit opinion for the year under review is commendable. The Board, management, as well as the Shareholder worked together to achieve this milestone, progress which calls for more intensity in compliance to governance. Lastly we wish to thank the Interim CEO, Mr. Gladwin Kotsedi, who stepped in upon resignation of the former CEO, Mr. Ndumiso Matlala, and his team for displaying commitment in uplifting tourism performance and standard in the province. We have again retained our number one spot as the most visited province in the country on the domestic tourism front. The team is also thanked for its tireless efforts to assist the entity to obtain an unqualified audit report from the Auditor General. We salute both our internal auditors and Auditor General, to whose professional prowess we are continually indebted, as assurance providers. ____________________________ K.A DIPELA Board Chairperson Limpopo Tourism Agency

8. CHIEF EXECUTIVE OFFICER’S OVERVIEW Name: Mr. Thapelo Gladwin Kotsedi Title: Interim Executive Officer

The Member of the Executive Council (MEC) responsible for Economic Development, Environment and Tourism, the Hon Seaparo Sekoati (MPL).

The Chairperson of Limpopo Tourism Agency Board, Mr. Andrew Dipela and Members of the Board.

It is an honour for me to, on behalf of LTA management and staff, present the 2016/17 Annual Performance Report to you. Part of our responsibility to the Board and the Shareholder, Limpopo Economic Development, Environment and Tourism (LEDET), is to ensure maximum accountability in the execution of our mandate in respect of the Limpopo Tourism Act 2/2009. To this end, we wish to, as part of the fulfilment of this responsibility, submit our full account of the activities of Limpopo Tourism Agency (LTA) for the financial year 2016/17.

The 2016/17 financial year has been very exciting with a plethora of activities and events that sought to promote our province by attracting multitudes of people to the province. The financial year also marked the first year of the implementation of the marketing strategy in respect of a singular mandate of marketing the province. Limpopo Wildlife Resorts was effectively transferred to Limpopo Economic Development, Environment and Tourism (LEDET). Based on the marketing strategy, the entity was able to formulate the Annual Performance Plan for the year under review. At the helm of the Annual Performance Plan, was the need to comply with the SMART principles, which provide for the following attributes: specific, measurable, attainable, realistic and timely goals. The entity conducted a successful media colloquium in order for the Board to make known its intensions to fulfil its new singular mandate of marketing Limpopo Province as a leading destination.

In addition, the entity participated in Tourism INDABA where tourism entrepreneurs were supported and mentored to gain market access. The newly established tourism division of the entity (Integrated Destination Marketing) organised briefing sessions for all the delegates who attended Tourism INDABA that took place in May 2017.


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It will be inept of myself not to highlight that whilst it is the ultimate goal of this entity to achieve a clean audit, the strides made in movement from a qualified audit opinion during the previous year to an unqualified audit opinion for the year under review is commendable. The Board, management, as well as the Shareholder worked together to achieve this milestone, progress which calls for more intensity in compliance to governance. Lastly we wish to thank the Interim CEO, Mr. Gladwin Kotsedi, who stepped in upon resignation of the former CEO, Mr. Ndumiso Matlala, and his team for displaying commitment in uplifting tourism performance and standard in the province. We have again retained our number one spot as the most visited province in the country on the domestic tourism front. The team is also thanked for its tireless efforts to assist the entity to obtain an unqualified audit report from the Auditor General. We salute both our internal auditors and Auditor General, to whose professional prowess we are continually indebted, as assurance providers. ____________________________ K.A DIPELA Board Chairperson Limpopo Tourism Agency

8. CHIEF EXECUTIVE OFFICER’S OVERVIEW Name: Mr. Thapelo Gladwin Kotsedi Title: Interim Executive Officer

The Member of the Executive Council (MEC) responsible for Economic Development, Environment and Tourism, the Hon Seaparo Sekoati (MPL).

The Chairperson of Limpopo Tourism Agency Board, Mr. Andrew Dipela and Members of the Board.

It is an honour for me to, on behalf of LTA management and staff, present the 2016/17 Annual Performance Report to you. Part of our responsibility to the Board and the Shareholder, Limpopo Economic Development, Environment and Tourism (LEDET), is to ensure maximum accountability in the execution of our mandate in respect of the Limpopo Tourism Act 2/2009. To this end, we wish to, as part of the fulfilment of this responsibility, submit our full account of the activities of Limpopo Tourism Agency (LTA) for the financial year 2016/17.

The 2016/17 financial year has been very exciting with a plethora of activities and events that sought to promote our province by attracting multitudes of people to the province. The financial year also marked the first year of the implementation of the marketing strategy in respect of a singular mandate of marketing the province. Limpopo Wildlife Resorts was effectively transferred to Limpopo Economic Development, Environment and Tourism (LEDET). Based on the marketing strategy, the entity was able to formulate the Annual Performance Plan for the year under review. At the helm of the Annual Performance Plan, was the need to comply with the SMART principles, which provide for the following attributes: specific, measurable, attainable, realistic and timely goals. The entity conducted a successful media colloquium in order for the Board to make known its intensions to fulfil its new singular mandate of marketing Limpopo Province as a leading destination.

In addition, the entity participated in Tourism INDABA where tourism entrepreneurs were supported and mentored to gain market access. The newly established tourism division of the entity (Integrated Destination Marketing) organised briefing sessions for all the delegates who attended Tourism INDABA that took place in May 2017.


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LTA organised Tourism Month activities commencing with the launch as a precursor. The month long activities culminated in the World Tourism Day Celebrations that took place in Parys in the Free State Province.

Limpopo Province continues to be one of the major recipients of tourism arrivals from South Africa’s core international markets given its broad tourism product offering and appeal. The province is within the top three most visited in the country on the domestic tourism front.

LTA has deliberately supported various provincial events that contribute to bringing high volumes of people into the Province on an annual basis. Major events that LTA supported include Mapungubwe Arts and Culture Heritage Festival (MACHEF), I-Rock, Balobedu Get Together Festival, Limpopo Marula Festival and BCX Supersport Shootout. The Agency further partnered with Sapa Yopa Motor Cycling Association for its rally that also drives the economy by bringing more motor cyclists and their followers to the province. LTA continued to partner with Kremetart Cycle Race organisers, which is the biggest family event and one of the biggest cycle races in the country.

The transfer of LWR Function to LEDET was completed seamlessly but required a serious review of LTA’s strategic business, corporate plan and organisational design to be aligned to our new business responsibility. LTA appointed a service provider to do the organisational design and develop a structure in line with the new mandate. The entire structure will be complete and be ready for implementation during the next financial year, 2017/18.

In delivering its mandate, LTA draws its influence from national and provincial policies and strategies alike, which clearly serve to guide, promote and grow tourism in the province. It will be imperative for LTA to be differentiated from any other destination with its identifiable brand (as a differentiator). This denotes that the entity will be finalising a new focused brand journey that will help the Entity stand out in the marketing space.

It is important to note that LTA’s newly revised mandate is now keenly focused on increasing tourist arrivals into and within the Limpopo Province through marketing. Our Marketing Strategy has been aligned to the strategies of Brand SA, SA Tourism, National Tourism Sector Strategy (NTSS) and Limpopo Development Plan derived from the National Development Plan.

As a matter of emphasis, the Agency is responsible for the generic marketing of the six (6) tourism clusters in the Province, namely:

Golf and Game Hunting and Safari Family and Recreation Special interest Mega-conservation Meetings Incentives Conference and Events (MICE)

We wish to, on a sad note, extend our heartfelt condolences to the Royal Family of Nchabeleng on the loss of their leader, who also served as a member of the LTA Board, Kgošigadi Maponye Edith Nchabeleng, and may her soul rest in peace. We wish to also extend words of condolences to the family of our Board Chairperson, Mr. Andrew Dipela, on the loss of his son. In the same spirit, condolences are directed to all Board and staff members who lost their loved ones during the period under review.

We wish to thank everybody who contributed towards the success of LTA during the period under review.

Our Shareholder (MEC) for the strategic support. Our Board for its leadership, support and guidance. Our Executive Management and the entire staff for giving their all during the most difficult times. My colleagues, CEO’s of other tourism authorities in other Provinces, for their willingness to always share good practices on how best we can grow

tourism in our country. My colleagues, CEO’s of other State Owned Entities in our Province, for their unqualified support. Members of the media for their coverage of our Province to ensure that Limpopo does not remain in obscurity.

We present this report with pride about our successes and achievements hoping to improve our position as the most visited destination in the country on the domestic tourism front. The financials of this entity best describe the effort that has been made during the year under review, from a qualified audit opinion to unqualified audit opinion. We continue to recognize that tourism can only grow to serve the needs of our people. We enter the new financial year with more dedication, vigour, determination and resolve hoping to succeed even more.

____________________________ TG KOTSEDI Interim Chief Executive Officer Limpopo Tourism Agency


19

LTA organised Tourism Month activities commencing with the launch as a precursor. The month long activities culminated in the World Tourism Day Celebrations that took place in Parys in the Free State Province.

Limpopo Province continues to be one of the major recipients of tourism arrivals from South Africa’s core international markets given its broad tourism product offering and appeal. The province is within the top three most visited in the country on the domestic tourism front.

LTA has deliberately supported various provincial events that contribute to bringing high volumes of people into the Province on an annual basis. Major events that LTA supported include Mapungubwe Arts and Culture Heritage Festival (MACHEF), I-Rock, Balobedu Get Together Festival, Limpopo Marula Festival and BCX Supersport Shootout. The Agency further partnered with Sapa Yopa Motor Cycling Association for its rally that also drives the economy by bringing more motor cyclists and their followers to the province. LTA continued to partner with Kremetart Cycle Race organisers, which is the biggest family event and one of the biggest cycle races in the country.

The transfer of LWR Function to LEDET was completed seamlessly but required a serious review of LTA’s strategic business, corporate plan and organisational design to be aligned to our new business responsibility. LTA appointed a service provider to do the organisational design and develop a structure in line with the new mandate. The entire structure will be complete and be ready for implementation during the next financial year, 2017/18.

In delivering its mandate, LTA draws its influence from national and provincial policies and strategies alike, which clearly serve to guide, promote and grow tourism in the province. It will be imperative for LTA to be differentiated from any other destination with its identifiable brand (as a differentiator). This denotes that the entity will be finalising a new focused brand journey that will help the Entity stand out in the marketing space.

It is important to note that LTA’s newly revised mandate is now keenly focused on increasing tourist arrivals into and within the Limpopo Province through marketing. Our Marketing Strategy has been aligned to the strategies of Brand SA, SA Tourism, National Tourism Sector Strategy (NTSS) and Limpopo Development Plan derived from the National Development Plan.

As a matter of emphasis, the Agency is responsible for the generic marketing of the six (6) tourism clusters in the Province, namely:

Golf and Game Hunting and Safari Family and Recreation Special interest Mega-conservation Meetings Incentives Conference and Events (MICE)

We wish to, on a sad note, extend our heartfelt condolences to the Royal Family of Nchabeleng on the loss of their leader, who also served as a member of the LTA Board, Kgošigadi Maponye Edith Nchabeleng, and may her soul rest in peace. We wish to also extend words of condolences to the family of our Board Chairperson, Mr. Andrew Dipela, on the loss of his son. In the same spirit, condolences are directed to all Board and staff members who lost their loved ones during the period under review.

We wish to thank everybody who contributed towards the success of LTA during the period under review.

Our Shareholder (MEC) for the strategic support. Our Board for its leadership, support and guidance. Our Executive Management and the entire staff for giving their all during the most difficult times. My colleagues, CEO’s of other tourism authorities in other Provinces, for their willingness to always share good practices on how best we can grow

tourism in our country. My colleagues, CEO’s of other State Owned Entities in our Province, for their unqualified support. Members of the media for their coverage of our Province to ensure that Limpopo does not remain in obscurity.

We present this report with pride about our successes and achievements hoping to improve our position as the most visited destination in the country on the domestic tourism front. The financials of this entity best describe the effort that has been made during the year under review, from a qualified audit opinion to unqualified audit opinion. We continue to recognize that tourism can only grow to serve the needs of our people. We enter the new financial year with more dedication, vigour, determination and resolve hoping to succeed even more.

____________________________ TG KOTSEDI Interim Chief Executive Officer Limpopo Tourism Agency


20

PART BPERFORMANCE INFORMATION


21

LIMPOPO TOURISM AGENCY EXECUTIVE MANAGEMENT COMMITTEE

Mr. Thapelo Gladwin KotsediInterim Chief Executive Officer

Mr. Sammy ManamelaChief Financial Officer

Mr. Sello MalekaExecutive Human Resources

Ms. Lulama TshabalalaExecutive Tourism Marketing

Mr. Nkhensani MabundaActing Company Secretary

Mr. Mike TauatsoalaManager Corporate Communications

& PR

Ms. Maureen PhalalaManager Legal Services

Mr. Choene MasogaManager Risk and Compliance


22

1. Statement of Responsibility for Performance Information for the year ended 31 March 2016 The Chief Executive Officer is responsible for the preparation of the Limpopo Tourism Agency’s performance information and for the judgements made in this information. The Chief Executive Officer is responsible for establishing, and implementing a system of internal control designed to provide reasonable assurance as to the integrity and reliability of performance information. In my opinion, the performance information fairly reflects the actual achievements against planned objectives, indictors and targets as per the strategic and annual performance plan of the public entity for the financial year ended 31 March 2017.

The Limpopo Tourism Agency’s performance information for the year ended 31 March 2017 has been examined by the external auditors and their report is presented on page 62 to 67. The performance information of Limpopo Tourism Agency as set out on page 25 to page 38 was approved by the board.

_________________________ TG KOTSEDI Interim Chief Executive Officer

2. AUDITOR’S REPORT: PREDETERMINED OBJECTIVES

The AGSA/auditor currently performs the necessary audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion.

Refer to page 62 - 67 of the Auditor’s Report, published as Part E: Financial Information.

3. OVERVIEW OF LIMPOPO TOURISM AGENCY’S PERFORMANCE

3.1. Service Delivery Environment

(a) Develop and implement a tourism marketing strategy within the framework of the provincial tourism strategies; (b) Undertake and facilitate tourism research; (c) Support tourism transformation and capacity building programmes; (d) Enhance and enable tourism investment opportunities on provincial nature reserves; (e) Enhance the integration of tourism programmes through the establishment of formal partnerships with municipalities; (f) Initiate tourism product development in provincial nature reserves; (g) Provide hospitality services in provincial nature reserves; (h) Subject to the PFMA and other applicable legislation, establish strategic partnerships with community co-operatives, organisations, government structures and tourism organisations for enhancing tourism marketing; (i) Establish and maintain a database containing information relating to - (i) Existing tourist attractions, infrastructure, facilities, services, location and access; (ii) Natural and cultural attractions that may be developed as tourist attractions in the province; and (iii) New areas of tourism activity and potential sites for these activities;


23

1. Statement of Responsibility for Performance Information for the year ended 31 March 2016 The Chief Executive Officer is responsible for the preparation of the Limpopo Tourism Agency’s performance information and for the judgements made in this information. The Chief Executive Officer is responsible for establishing, and implementing a system of internal control designed to provide reasonable assurance as to the integrity and reliability of performance information. In my opinion, the performance information fairly reflects the actual achievements against planned objectives, indictors and targets as per the strategic and annual performance plan of the public entity for the financial year ended 31 March 2017.

The Limpopo Tourism Agency’s performance information for the year ended 31 March 2017 has been examined by the external auditors and their report is presented on page 62 to 67. The performance information of Limpopo Tourism Agency as set out on page 25 to page 38 was approved by the board.

_________________________ TG KOTSEDI Interim Chief Executive Officer

2. AUDITOR’S REPORT: PREDETERMINED OBJECTIVES

The AGSA/auditor currently performs the necessary audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion.

Refer to page 62 - 67 of the Auditor’s Report, published as Part E: Financial Information.

3. OVERVIEW OF LIMPOPO TOURISM AGENCY’S PERFORMANCE

3.1. Service Delivery Environment

(a) Develop and implement a tourism marketing strategy within the framework of the provincial tourism strategies; (b) Undertake and facilitate tourism research; (c) Support tourism transformation and capacity building programmes; (d) Enhance and enable tourism investment opportunities on provincial nature reserves; (e) Enhance the integration of tourism programmes through the establishment of formal partnerships with municipalities; (f) Initiate tourism product development in provincial nature reserves; (g) Provide hospitality services in provincial nature reserves; (h) Subject to the PFMA and other applicable legislation, establish strategic partnerships with community co-operatives, organisations, government structures and tourism organisations for enhancing tourism marketing; (i) Establish and maintain a database containing information relating to - (i) Existing tourist attractions, infrastructure, facilities, services, location and access; (ii) Natural and cultural attractions that may be developed as tourist attractions in the province; and (iii) New areas of tourism activity and potential sites for these activities;


24

3.2. Strategic outcome oriented goals

Programme Strategic Goal Progress

OFFICE OF THE CEO

To contribute to the economic growth through marketing of Limpopo as a leading destination in Southern Africa.

Complied with all governance prescripts. Engaged stakeholders.

CORPORATE SERVICES Management contributed immensely towards the review of the Records Management file plan. The entity appointed six interns for a period of twelve months to acquire workplace experience in line with the Skills Development Act No. 97 of 1998 as amended. Employee wellness programmes were implemented to create awareness on HIV/AIDS and Cancer. Members of staff were encouraged to participate in physical activities to promote a healthy lifestyle. A harmonious working relationship was maintained with organised labour and matters of mutual interest were amicably resolved.

FINANCIAL MANAGEMENT Financial management was qualified.

INTERGRATED DESTINATION MARKETING

Focused on being present in the media space and created more awareness on the province’s offerings. The entity looked at leveraging on the events from mass movements and targeting different market segments.


25

3.2. Strategic outcome oriented goals

Programme Strategic Goal Progress

OFFICE OF THE CEO

To contribute to the economic growth through marketing of Limpopo as a leading destination in Southern Africa.

Complied with all governance prescripts. Engaged stakeholders.

CORPORATE SERVICES Management contributed immensely towards the review of the Records Management file plan. The entity appointed six interns for a period of twelve months to acquire workplace experience in line with the Skills Development Act No. 97 of 1998 as amended. Employee wellness programmes were implemented to create awareness on HIV/AIDS and Cancer. Members of staff were encouraged to participate in physical activities to promote a healthy lifestyle. A harmonious working relationship was maintained with organised labour and matters of mutual interest were amicably resolved.

FINANCIAL MANAGEMENT Financial management was qualified.

INTERGRATED DESTINATION MARKETING

Focused on being present in the media space and created more awareness on the province’s offerings. The entity looked at leveraging on the events from mass movements and targeting different market segments.

4. PERFORMANCE INFORMATION BY PROGRAMME

4.1. Programme 1: Office of the Chief Executive Officer

Purpose

The purpose of the programmes is to ensure effective, efficient and economic management of the entity. Further that the Board and its activities are well managed. That all the identified top ten risks are mitigated and reviewed regularly. It is aimed at intensifying communication amongst the staff, industry and stakeholders at large. Imperative also will be putting in place an effective plan that would monitor and develop strategic goals of the company in line with the mandate given.

Sub-Programmes

Board support

Monitoring and Evaluation

Internal audit and risk

Corporate communications

Strategic objectives, performance indicators planned targets and actual achievements

Office of the CEO

Strategic objectives Actual Achievement 2015/2016

Planned Target 2016/2017

Actual Achievement 2016/2017

Deviation from planned target to Actual Achievement for

2016/2017

Comment on deviations

To improve organisational performance

Improved organisational performance

To improve organisational performance


None None


26

Key performance indicators, planned targets and actual achievements

Programme / Sub-programme 1: Office of the CEO

Performance Indicator Actual Achievement 2015/2016




2016/2017


Number of Programmes monitored in line with Performance information frameworks to ensure that 90% of planned targets are achieved

Not Measured 16 16 None None

Number of risk management reports produced

Four (4) risk management reports submitted

4 4 None None

Programme Contribution Governance: programme was able to ensure legislative compliance in the organisation. Stakeholder relations: organisation was able to engage and maintain relations with internal and external stakeholders. The entity will embark on an organisational re-design programme to ensure that the new strategy is aligned to the organisational structure and functions.

Strategy to overcome areas of under performance The entity has appointed the internal audit to provide assurance on the internal controls of the organisation.


27


Programme / Sub-programme 1: Office of the CEO





2016/2017


Number of Programmes monitored in line with Performance information frameworks to ensure that 90% of planned targets are achieved

Not Measured 16 16 None None

Number of risk management reports produced

Four (4) risk management reports submitted

4 4 None None

Programme Contribution Governance: programme was able to ensure legislative compliance in the organisation. Stakeholder relations: organisation was able to engage and maintain relations with internal and external stakeholders. The entity will embark on an organisational re-design programme to ensure that the new strategy is aligned to the organisational structure and functions.

Strategy to overcome areas of under performance The entity has appointed the internal audit to provide assurance on the internal controls of the organisation.

Changes to planned targets

No changes.

Linking performance with budgets

Notes:

Communications activities were executed under Integrated Marketing Division’s votes.

Consultants and Professional fees were not budgeted for in the year 2015/2016.

Risk and Compliance was not budgeted for in the year 2015/2016.

2016/2017 2015/2016

Sub- Programme Name Budget

Actual Expenditure

(Over)/Under Expenditure

Budget

Actual Expenditure


R R R R R R

CEO 565 718 596 410 (30 692) 1 412 360 706 113 706 247ol

Board Management 3 749 954 2 906 571 843 383 2 687 640 2 535 927 151 713

Communications 0 0 0 0 0 0

Consultants and Professional fees

74 328 63 937 10 391 0 0 0

Risk and Compliance 50 000 45 674 4 326 0 0 0

Employee Compensation 5 978 956 5 754 281 390 863 5 781 893 5 696 782 85 111

Capex 60 000 33 375 26 625 160 000 81 472 78 528

Total 10 478 956 9 400 248 1 244 896 10 041 893 9 020 294 1 021 599


28

4.2. Programme 2: Corporate Services

Purpose

To provide effective and efficient corporate support services in Limpopo Tourism Agency.

Sub-Programmes

Administration Human Resources Information Communication Technology


Programme Name: Human Resource

Strategic Objective Actual Achievement 2015/2016




2016/2017


To ensure the effective and efficient management of the entity to achieve its mandate


Effective and efficient corporate support services provided in Limpopo Tourism Agency

Effective and efficient corporate support services provided in Limpopo Tourism Agency

None None


29


Programme / Sub-programme 2: Corporate Services

Performance Indicator





2016/2017


Number of Records Management file plan reviewed.

Not measured One (1) Records Management file plan reviewed.

1 None None

Number of Organisational Redesign strategy developed

Not measured One (1) Organizational Redesign strategy developed.

None 1 Awaiting finalization of Organisational Design. Service Provider has been appointed to work on OD project and same is planned to be completed by end of June 2017.

Number of employment equity plan developed

Not measured One (1) employment equity plan developed.

None 1 The employment equity plan could not be finalised due to restructuring of the entity.

Number of ICT strategy developed

Not measured One (1) ICT strategy developed.

None 1 Procurement committee advised that the Terms Of Reference need to be beefed up. Limpopo Business Connexion was engaged to revise the TOR. The Bid for ICT strategy is reprioritised and included in the 2017/2018 procurement plan.


30

Programme’s contribution The management contributed immensely towards the review of the Records Management file plan. The entity appointed six interns for a period of twelve months to acquire workplace experience in line with the Skills Development Act no. 97 of 1998 as amended. Employee Wellness Programmes were implemented to create awareness on HIV/ AIDS and Cancer. Members of staff were encouraged to participate in physical activities to promote a healthy lifestyle. A harmonious working relationship was maintained with organised labour and matters of mutual interest were amicably resolved.

Strategy to overcome areas of under performance

Finalise the Organisational redesign process to ensure alignment to the entity’s objectives and employment equity goals. To fast track the appointment of a service provider who would assist in development the ICT Strategy.

Changes to planned targets No changes to the planned targets Linking performance with budgets

2016/2017 2015/2016


Actual Expenditure


Budget

Actual Expenditure

(Over) /Under Expenditure

R R R R R R

Human Resources Management 272 500 220 151 52 349 677 664 534 682 142 982

Human Resources Development 323 619 35 232 288 387 0 0 0

Professional fees 1 333 500 108 710 1 224 790 Employee Wellness 65 000 26 655 38 345 35 002 0 0 Employee Relations 50 000 8 684 41 316 0 0 0 Compensation of Employees 6 819 340 5 864 528 954 812 6 599 113 6 612 619 (13 506) Capex 29 000 23 788 5 212 20 396 10 396 10 000 Total 8 052 575 6 177 511 1 875 064 7 297 173 7 157 697 139 476


31

Notes: Human Resources Development was not budgeted for in 2015/2016 Employee Relations was not budgeted for in the year 2015/2016

4.3. Programme 3: Financial Management

Purpose

To ensure sound financial management and accountability in Limpopo Tourism Agency.

Sub-Programmes

Financial Management Supply Chain Management


Programme Name: Financial Management




Deviation from planned target to Actual Achievement for 2016/2017


To ensure the effective and efficient management of the entity to achieve its mandate

Qualified audit opinion obtained.

Unqualified audit opinion.

Unqualified audit opinion.

None


32


Programme / Sub-programme 3: Financial Management

Performance Indicator





2016/2017


Unqualified Audit opinion obtained

Qualified audit opinion obtained

1 1 None None

Number of in year monitoring reports produced

4 in year monitoring reports produced

4 4 None None.

% of budget spent Break even (100%) budget management

96% 88% 8.1 % Failure to appoint service provider to develop the ICT strategy as the terms of reference had to be beefed up.

Cancellation of website tender because the bid was non responsive in that it was not addressing what the objective of the bid was.

Delay in the finalisation of the brand strategy by the service provider after the inputs from the board were made.

Number of invoices paid within 30 days

Not measured 90 % 90% 0% None


33

Programme’s contribution Financial management division managed to control the budget effectively. The under expenditure of 8 % was as a result of the projects that could not be implemented. The unit managed to effectively minimise irregular expenditures. Strategy to overcome areas of under performance In order to implement projects, the annual procurement plan was developed and submitted to the LPT as per the requirements. Financial Management need some improvements, continuously monitor the budget and expenditure efficiently. Changes to planned targets No changes were made to the programme. Linking performance with budgets

2016/2017 2015/2016


Actual Expenditure


Budget

Actual Expenditure


R R R R R R

Financial Management 20 726 176 20 220 604 505 572 33 344 604 32 846 681 497 923 Supply Chain Management 2 373 657 1 443 109 930 548 0 0 0 Information and Communications Technology 525 000 404 609 120 391 0 0 0

Employee Cost 5 612 545 5 288 613 323 932 8 245 415 7 282 402 963 013

Capex 125 000 102 222 22 778 165 000 118 835 46 165

Total 29 632 378 27 459 157 2 173 221 41 755 019 40 247 917 1 507 102

Notes:

Supply Chain Management was not budgeted for in 2015/2016 Financial year.

Information and Communication Technology was not budgeted for in the year 2015/2016


34

4.4. Programme 4: Integrated Destination Marketing

Purpose

The purpose of this programme is to market the province domestically and internationally. This will be done by positioning Limpopo Province as the leading tourism destination in Southern Africa through branding, market research, customer relations management, information dissemination, tourism safety, trade relations and support tourism Small Medium Micro Enterprises (SMMEs).

Sub-Programmes:

Destination marketing services

Destination promotion

Destination information services

Destination research


Programme Name





2016/2017


Increased tourist arrivals through domestic and international marketing initiatives

Participate in one(1) trade marketing activities

Increased tourist arrivals Increased tourist arrivals None None


35


Programme / Sub-programme 4: Integrated destination marketing




Deviation from planned target to

Actual Achievement for

2016/2017


Number of brand strategies developed

No Baseline One (01) brand strategy developed.

None 1 Delay in the finalisation of the brand strategy by the service provider after the inputs from the board were made.

Number of strategic marketing partnerships concluded

No Baseline Eleven (11) strategic partnership concluded 11 None None.

Number of destination promotion umbrella awareness campaigns developed

No Baseline One (01) destination promotion umbrella campaign conducted

1 None None.

Number of business tourism strategies developed

No Baseline One (01) business tourism strategy reviewed

None 1 Reprioritised for 2017/2018 financial year as a resuscitation plan for business tourism.


36

Programme / Sub-programme 4: Integrated destination marketing




Deviation from planned target to

Actual Achievement for

2016/2017


Number of Tourism entrepreneurs supported to gain market access

Supported ten (10) tourism entrepreneurs

Sixteen (16) tourism entrepreneurs supported to gain market access

16 None None.

Tourism market research conducted

Four (04) market research reports produced

Four (04) tourism marketing research reports produced

4 None None

Number of internal marketing capacity programmes

Not measured Four (4) staff educational tours conducted

4 None None

Number of visitor centres supported

Not measured Five (5) visitor centres supported

4 1 The entity does not have an operational office in the Waterberg district. However, the marketing material was circulated to the Bela-Bela municipality tourism office.

Number of quality marketing information tools developed and implemented

Not measured Three (3) quality marketing information tools developed and implemented

3 None None.


37

Programme’s contribution:

The year 2016/17 was a very fulfilling year in the sense that the focus was on registering presence in the media space and creating more awareness on the province’s offerings. The entity succeeded in leveraging on the events looking at mass movements and targeting different market segments.

Strategy to overcome areas of under performance Business tourism needs to be given more attention and proper human capacity because of the potential it has on economic development. The activation will be that of targeted approach as such looking at hosting small conferences. Mass tourism will progressive focusing on back to basics like targeting the schools and the pilgrimage in the next fiscal year. Changes to planned targets No changes were made to the programme

Linking performance with budgets

2016/2017 2015/2016


Actual Expenditure


Budget

Actual Expenditure


R R R R R R

Marketing Services 26 484 100 23 810 984 1 673 116 3 069 200 2 041 107 1 028 093

Information Services and Research 2 600 000 1 775 019 824 981 0 0 0

Transformation and Capacity building 290 900 175 453 115 447 0 0 0

Divisional Support 1 285 000 601 269 683 731 0 0 0

Employee Cost 10 358 707 10 006 297 352 410 9 717 331 9 508 662 208 669

Capex 590 000 61 233 528 767 150 000 113 833 36 167 Total 40 608 707 36 361 150 4 247 557 12 936 531 11 663 602 1 272 929


38

Notes: Information Services and Research was not budgeted for in the year 2015/2016 Transformation and Capacity building was not budgeted for in the year 2015/2016 Divisional Support was not budgeted for in the year 2015/2016

SUMMARY OF FINANCIAL INFORMATION

5.1. Programme Expenditure 2016/2017 2015/2016


Actual Expenditure


Budget

Actual Expenditure


R

000 R

000 R

000 R

000 R

000 R

000

Personnel Costs 29 093 25 897 3 196 57 296 53 253 4 061

Goods and Services 26 484 23 621 2 863 48 350 43 985 4 364

Board Expenses 3 750 2 907 843 2 687 2 535 151

Infrastructure Operating Expenses

0 0 0 7 891 7 004 887

Capital Expenditure 258 140 118 1 323 760 562

Capital Expenditure-Infrastructure

0 0 0 49 461 47 006 2 455

Integrated destination marketing

30 000 26 260 3 740 0 0 0

Total 89 585 78 825 10 760 167 011 154 528 12 482

Notes:

Infrastructure Operating Expenses function has since been transferred along with LWR to LEDET

Capital Expenditure Infrastructure function has since been transferred along with LWR to LEDET


39

PART CGOVERNANCE


40

1. INTRODUCTION Corporate governance embodies processes and systems by which public entities are directed, controlled and held to account. In addition to legislative requirements based on a public entity's enabling legislation, the Limpopo Tourism Act 2/2009, corporate governance with regard to public entity is applied through the precepts of the Public Finance Management Act 1/1999 (PFMA) and run in tandem with the principles contained in the King's Report. The Executive and the Accounting Authority of the public entity are responsible for corporate governance. 2. PORTFOLIO COMMITTEE

The entity appeared twice at the Portfolio Committee during the year under review.

3. EXECUTIVE AUTHORITY Four quarterly reports were submitted to the Executive Authority on the following dates:

First quarter on the 15th July 2016 Second quarter on the 10th October 2016 Third quarter on the 13th January 2017 Fourth quarter on the 13th April 2017

4. THE ACCOUNTING AUTHORITY

Introduction The Board continues to give direction to management and executes its fiduciary duties. The role of the Board is as follows: Oversees that the Agency:

(a) Develop and implement a tourism marketing strategy within the framework of the provincial tourism strategies;

(b) Undertake and facilitate tourism research;

(c) Support tourism transformation and capacity building programmes;

(d) Enhance and enable tourism investment opportunities on provincial nature reserves;

Kgošigadi Maponye Edith Nchabeleng

Cllr. Jack MaekoMs. Khumbudzo Phophi Silence Ntshavheni

Mr. Papi Motene

Dr. Thidziambi Gladys Nethengwe Dr. Annemie De Klerk Mr. Mantsho Owen Phasha Cllr. Hlaume Orginia Mafefe

Dr. Tirhani Ezekiel MabundaMr. Adrew Khiba Dipela Board Chairperson

Mr. Moses Mabokela Chikane Board Deputy Chairperson

Ms. Mathukana Mokoka Kgoshi Seshego Sekgalabjana Solly Sekororo


41

1. INTRODUCTION Corporate governance embodies processes and systems by which public entities are directed, controlled and held to account. In addition to legislative requirements based on a public entity's enabling legislation, the Limpopo Tourism Act 2/2009, corporate governance with regard to public entity is applied through the precepts of the Public Finance Management Act 1/1999 (PFMA) and run in tandem with the principles contained in the King's Report. The Executive and the Accounting Authority of the public entity are responsible for corporate governance. 2. PORTFOLIO COMMITTEE

The entity appeared twice at the Portfolio Committee during the year under review.

3. EXECUTIVE AUTHORITY Four quarterly reports were submitted to the Executive Authority on the following dates:

First quarter on the 15th July 2016 Second quarter on the 10th October 2016 Third quarter on the 13th January 2017 Fourth quarter on the 13th April 2017

4. THE ACCOUNTING AUTHORITY

Introduction The Board continues to give direction to management and executes its fiduciary duties. The role of the Board is as follows: Oversees that the Agency:

(a) Develop and implement a tourism marketing strategy within the framework of the provincial tourism strategies;

(b) Undertake and facilitate tourism research;

(c) Support tourism transformation and capacity building programmes;

(d) Enhance and enable tourism investment opportunities on provincial nature reserves;


42

(e) Enhance the integration of tourism programmes through the establishment of formal partnerships with municipalities;

(f) Initiate tourism product development in provincial nature reserves;

(g) Provide hospitality services in provincial nature reserves;

(h) Subject to the PFMA and other applicable legislation, establish strategic partnerships with community co-operatives, organisations, government

structures and tourism organisations for enhancing tourism marketing;

(i) Existing tourist attractions, infrastructure, facilities, services, location and access;

(ii) Natural and cultural attractions that may be developed as tourist attractions in the province; and

(iii) New areas of tourism activity and potential sites for these activities;

(j) Advise the MEC on any matter relating to the tourism industry; and

(k) Perform any other function the MEC may assign or delegate to the Agency. Board Charter The Board Charter is in place and the Board's activities find meaning from the Charter.

Composition of the Board

Name Designation (in terms of the Public Entity

Board structure)

Date appointed

Date resigned/

Terminated

Qualifications

Area of Expertise

Board

Directorships (List the entities)

Other Committees (e.g: Audit committee)

No. of Meetings attended

Khiba Andrew Dipela

Chairperson 01 May 2015 Courses passed: Private 1 &2 Constitutional Law African Law English 1 Criminal Law Interpretation of Statutes Family Law Afrikaans Political Science 1 &2

Professional Sport Management Graduate Module

Executive Sports Management Programme FIFA Futuro 3 Graduate

Sports Human Resources

Trustee of Bokamoso Investment Trust

Revolutionary Road Solutions Rotakuwa Gaming and Leisure Chairperson of Dipela Sports

Events

25

Mabokela Moses Chikane

Deputy Chairperson and Chairperson: Tourism, Marketing and

01 May 2015 Advanced Diploma in Economic Policy

Diploma in Economics and Public Finance

International Relations and Governance

Eco-Bridge Builders Group

Human Resources and Remunerations

22


43


Board structure)

Date appointed

Date resigned/

Terminated

Qualifications

Area of Expertise

Board




Communications B Com Honours in Economics

Annemie de Klerk Member 01 May 2015 BSC Botany and Zoology

Higher Education Diploma BSC Honours in Botany MSC Faculty of Natural and

Agricultural Sciences Honorary Colours (Theme of Thesis: The Waterberg Biosphere Reserve)

PhD

Nature Conservation Scientist

Environmental management

Indusbel Cc Ethics and Governance

Finance and

Procurement

15

Kgoshi Seshego Sekgalabjana Solly Sekororo

Chairperson: Ethics and Governance Chairperson: Human Resources and Remunerations

01 May 2015

03/11/2016

Traditional Leader CPMD In Financial Management

Traditional authorities

13

Kgoshigadi Maponye Nchabeleng

Chairperson: Human Resources and Remunerations

01 May 2015 Passed on 04/12/2016

Traditional Leader B Proc Degree (not completed)

CPMD In Financial Management

Traditional authorities Shibu Business Enteprise Tourism, Marketing and Communications

10

Hlaume Orginia Mafefe

Member 01 May 2015 01/11/2016 BA Degree BED Degree MED Degree

Local government Councillor Risk and Audit Tourism, Marketing

and Communications

6

Papi Petrus Motene

Member 01 May 2015 03/11/2016

Diploma in Local Government Management

Certificate in Leadership Development

Certificate in Emerging Management Development

Introduction to Business Computing Financial Management Course

Financial Santete Trading Sesinjemi Projects

Finance and Procurement

Ethics and

Governance Procurement

Ethics and Governance

22

Mantsho Owen Phasha

Chairperson: Finance and Procurement

01 May 2015 Certificate in Property Management and Administration

Bachelor Arts, Politics and Literature

Governance Mamolapong Trading Projects Tourism, Marketing and Communications


24

Tirhani Ezekiel Mabunda

Member Chairperson:

01 May 2015 03/11/2016

Diploma in Public Administration BA Higher Education Diploma

Entrepreneurship Plus 94 Research Tirhani Auctioneers Afrin Wildlife Solutions


13


44


Board structure)

Date appointed

Date resigned/

Terminated

Qualifications

Area of Expertise

Board




Procurement

Honours in Business Administration Diploma in Auctioneering Accredited Auctioneer Real Estate Benefit Auction Specialist Chartered Institute Auctioneer Chartered Practioner in Real Estate Currently studying PhD in

Management of Technology and Information with Da Vinci Institute

African Training Academy and School of Auctioneering

On Board Travel Fhufhani Aviation

Finance and Procurement

Tourism, Marketing and Communications

Mathukana Mokoka

Chairperson: Risk and Audit

01 May 2015 Chartered Accountant (CA) SA Audit, Risk and Financial Management

Autopax Passenger Services Member

National Lotteries Commission

10

Thidziambi Gladys Nethengwe

Chairperson: Ethics and Governance

03/11/2016 BA Degree BA Honours Masters Degree: Female Linguistic

Etiquette with reference to a Muvenda

PhD: Chieftainship in Venda: A case of Tshivenda Lore

Education, Traditional authorities

Kara Heritage

Tourism Marketing and Communications

17

Khumbudzo Phophi Silence Ntshavheni

Member 01 May 2015 BA in Political Science BA Honours in Development

Studies BA Honours in Labour Relations Master in Business Administration

Political, Entrepreneurship

Managing Director: Phore Farms Bokamoso Ba Rena Investment

Trust

Tourism, Marketing and Communications


3


45

Board Committees

Committee No. of meetings held No. of members Name of members

Board 11 12 KA Dipela Ambassador MM Chikane Dr A De Klerk Dr TG Nethengwe Kgoshi SSS Sekororo TE Mabunda MO Phasha PP Motene Cllr HO Mafefe (resigned 01/11/2016) Kgoshigadi M Nchabeleng (passed on 04/12/2016) M Mokoka KPS Ntshavheni Cllr.J Maeko (appointed 12/01/2017)

Risk and Audit 2 4 M Mokoka Cllr. HO Mafefe (resigned 01/11/2016) Y.M Mathabatha M.P Mongalo Cllr.J Maeko (appointed 12/01/2017)

Joint Risk and Audit and Finance and Procurement

6 8 M Mokoka Cllr HO Mafefe (resigned 01/11/2016) Y.M Mathabatha M.P Mongalo MO Phasha TE Mabunda PP Motene Dr A De Klerk

Finance and Procurement 0 4 MO Phasha TE Mabunda PP Motene Dr A De Klerk

Procurement 1 4 TE Mabunda PP Motene MO Phasha House of Traditional leadership (Vacant)

Ethics and Governance 2 4 Kgoshi SSS Sekororo Dr. A De Klerk PP Motene Dr TG Nethengwe

Ethics and Governance 1 4 Kgoshi SSS Sekororo (appointed 03/11/2016) Dr. A De Klerk (appointed 03/11/2016) PP Motene (appointed 03/11/2016) Dr TG Nethengwe (appointed 03/11/2016)

Human Resources and Remunerations 2 4 Kgoshigadi M Nchabeleng (passed on 04/12/2016) Ambassador MM Chikane


46

TE Mabunda KPS Ntshavheni

Human Resources and Remunerations 1

4 Kgoshi SSS Sekororo (appointed 03/11/2016) Ambassador MM Chikane (appointed 03/11/2016) MO Phasha (appointed 03/11/2016) KPS Ntshavheni (appointed 03/11/2016)

Tourism, Marketing and Communications 5 4 Ambassador MM Chikane Kgoshigadi M Nchabeleng (passed on 04/12/2016) MO Phasha Cllr HO Mafefe (resigned 01/11/2016)

Tourism, Marketing and Communications 2 6 Ambassador MM Chikane (appointed 03/11/2016) HO Phasha (appointed 03/11/2016) KPS Ntshavheni (appointed 03/11/2016) TE Mabunda (appointed 03/11/2016) Dr A De Klerk (appointed 03/11/2016) Dr TG Nethengwe (appointed 03/11/2016)

Nominations 1 5 KA Dipela Ambassador MM Chikane Kgoshi SSS Sekororo Dr A D Klerk M Mokoka

Remuneration of board members See note 18 on Board reports on the Annual Financial Statements

5. RISK MANAGEMENT

LTA has adopted the Provincial Risk Management Framework in its approach to enterprise risk management. The entity has a risk management strategy in place which it is implementing. Risks are identified through a risk assessment session held on an annual basis. The entity considers reports by internal audit and external audit, incidents reports and investigations reports to inform the risk identification process. The entity prioritises top ten (10) risks annually and allocates resources in order to manage them. The entity's strategy is to reduce the impact of high level risks on its operations in order to realise the mandate, where possible, risks are transferred or avoided. 6. INTERNAL CONTROL UNIT

Although the Internal Control Unit was not established by the entity, the review of effectiveness of internal controls is currently done by internal audit however, co-ordinated by the Risk and Compliance Unit.

7. RISK & AUDIT COMMITTEE

The Risk and Audit Committee

Must ensure that the public entity has maintains: - Effective, efficient and transparent systems of financial and risk management and internal control.

The Internal Audit work includes: Reviewing and concluding on the reliability and integrity of financial and operating information and the means used to identify, measure, classify and report such

information:

Reviewing and concluding on the systems established by management to ensure compliance with those policies, plans, procedures, laws and regulations which could have a significant impact on operations and reports, and determining whether the Limpopo Tourism Agency is in compliance;

Reviewing and concluding on the means of safeguarding assets and, as appropriate, verifying the existence of assets.

Reviewing and concluding on operations of programmes to ascertain whether results are consistent with established objectives and goals and whether the operations or programmes are being carried out as planned.

Audit work done: Expenditure Management Supply Chain Management review Annual Financial Statement review Asset Register review Leave Audit (LWR)


47

7. RISK & AUDIT COMMITTEE

The Risk and Audit Committee

Must ensure that the public entity has maintains: - Effective, efficient and transparent systems of financial and risk management and internal control.

The Internal Audit work includes: Reviewing and concluding on the reliability and integrity of financial and operating information and the means used to identify, measure, classify and report such

information:

Reviewing and concluding on the systems established by management to ensure compliance with those policies, plans, procedures, laws and regulations which could have a significant impact on operations and reports, and determining whether the Limpopo Tourism Agency is in compliance;

Reviewing and concluding on the means of safeguarding assets and, as appropriate, verifying the existence of assets.

Reviewing and concluding on operations of programmes to ascertain whether results are consistent with established objectives and goals and whether the operations or programmes are being carried out as planned.

Audit work done: Expenditure Management Supply Chain Management review Annual Financial Statement review Asset Register review Leave Audit (LWR)


48

The table below discloses relevant information on the Risk and Audit committee members

Name Qualifications Internal or external If internal, position in the public entity Date appointed Date Resigned No. of

Meetings attended

Mathukana Mokoka Chartered Accountant (CA) SA Internal Autopax Passenger Services Member National Lotteries Board Member

21 May 2015 6


PhD Student Masters: Management

Internal Council Member 21 May 2015 1November 2016 3

Yvone Stephina Mmadikgomo Mathabatha

M.Com South African and international Taxation

CPMD

Internal Board Member: Sekhukhune Development Agency

Council Member: Waterberg TVET

01 Nov 2008 7

Makgoba Percy Mongalo

Diploma in Public Finance and Auditing

B.Com Accounting

B.Com Hons Accounting

Master of Business Administration

Internal National Skills Authority Limpopo Legislature Audit Committee

Member Molemole Municipality Lepelle Nkumpi Municipality Audit

Committee Polokwane Municipality Audit Committee

Member Capricorn TVET Audit Committee Member Limpopo Human Resource Development

Council Member

01 Nov 2008 7

Cllr Jack Maeko Internal Lephalale Local Municipality Mayor

12 Jan 2017 0

8. COMPLIANCE WITH LAWS AND REGULATIONS

The founding legislation of the entity is the Limpopo Tourism Act 2/2009. The objectives of the entity are well articulated in section 2 of the Act. Section 6 (k) provides in a nutshell that the MEC may from time to time delegate a function to the entity to execute. 9. FRAUD AND CORRUPTION

LTA has developed a fraud prevention plan, which is currently being implemented. The plan has three (3) key areas designed to eliminate fraud and corruption within LTA's operations. These areas focus on prevention, detection and correction.

LTA has furthermore complemented the plan in so far as detection of fraud and corruption is concerned by developing and implementing a whistleblowing policy. The policy sets out the channels and mechanisms on which to report fraud and corruption without fear of reprisals. The policy guarantees protection to all stakeholders raising genuine concerns regarding fraud and corruption. All cases reported are investigated and where wrong doing is found to have occurred, corrective action is taken immediately. 10. MINIMISING CONFLICT OF INTEREST The LTA policies require that all employees, including those charged with Supply Chain Management, disclose all their interest. Where potential for conflict is identified, LTA recuses the employee concerned from discharging any responsibility that would give rise to such conflict of interest. CODE OF CONDUCT The LTA Code of Conduct has been formulated in order to foster and maintain trust of the employees of the entity. The LTA Code of Conduct ensures that all employees adhere to appropriate standards of conduct in order to maintain and enhance the reputation of the entity. LTA has disciplinary rules that establish the acceptable standard of conduct required from employees which addresses specific consequences that an employee may face in contravening the policy. 11. HEALTH SAFETY AND ENVIRONMENTAL ISSUES

Although health and safety are valued in every facet of operations, the term health and safety relates primarily to occupational health safety and environmental concerns. Workplace Safety is not only employees whose health is at stake, but also employers who seek to both maintain a productive healthy work force and avoid penalties or legal liability as well as the public at large which can be affected by environmental fall-out from major workplace incidents. 12. COMPANY SECRETARY

Guides the Board collectively, and each director individually, as to their duties and responsibilities and make them aware of all legislation and regulations relevant to this entity. Ensures proper induction and orientation of directors, including assessing the specific training needs of directors and executive management in regard to their fiduciary and other

responsibilities. Is always available to provide comprehensive practical support and guidance to directors, with emphasis on supporting the non-executive directors and chairperson. Ensures unhindered access to information by all board and committee members that they can contribute to board meetings and other discussions. Compiles the board papers and for paginates them to ensure compliance with the required standards of good governance. Raises all matters that warrant the attention by the board. Ensures compliance with all relevant statutory and regulatory requirements, having due regard for the specific business interest of the company. Also assist carrying out corporate strategies by ensuring that the board's decisions and instructions are clearly communicated to the relevant persons.

13. SOCIAL RESPONSIBILITY

On 18 July 2016, the entity in partnership with Energy FM and Seshego Police Station conducted a social responsibility programme or corporate social investment programme at Seshego Victim Support Centre that houses victims of violence. LTA with Energy FM spent their day at the centre as part of the 67 minutes dedicated to community work. The activities on that day included amongst others cleaning of the rooms, offices and handing over of a new wendy house to be used as an additional office.

14. RISK AND AUDIT COMMITTEE REPORT We are pleased to present our report for the financial year ended 31 March 2017.


49

The table below discloses relevant information on the Risk and Audit committee members

Name Qualifications Internal or external If internal, position in the public entity Date appointed Date Resigned No. of

Meetings attended

Mathukana Mokoka Chartered Accountant (CA) SA Internal Autopax Passenger Services Member National Lotteries Board Member

21 May 2015 6


PhD Student Masters: Management

Internal Council Member 21 May 2015 1November 2016 3

Yvone Stephina Mmadikgomo Mathabatha

M.Com South African and international Taxation

CPMD

Internal Board Member: Sekhukhune Development Agency

Council Member: Waterberg TVET

01 Nov 2008 7

Makgoba Percy Mongalo

Diploma in Public Finance and Auditing

B.Com Accounting

B.Com Hons Accounting

Master of Business Administration

Internal National Skills Authority Limpopo Legislature Audit Committee

Member Molemole Municipality Lepelle Nkumpi Municipality Audit

Committee Polokwane Municipality Audit Committee

Member Capricorn TVET Audit Committee Member Limpopo Human Resource Development

Council Member

01 Nov 2008 7

Cllr Jack Maeko Internal Lephalale Local Municipality Mayor

12 Jan 2017 0

8. COMPLIANCE WITH LAWS AND REGULATIONS

The founding legislation of the entity is the Limpopo Tourism Act 2/2009. The objectives of the entity are well articulated in section 2 of the Act. Section 6 (k) provides in a nutshell that the MEC may from time to time delegate a function to the entity to execute. 9. FRAUD AND CORRUPTION

LTA has developed a fraud prevention plan, which is currently being implemented. The plan has three (3) key areas designed to eliminate fraud and corruption within LTA's operations. These areas focus on prevention, detection and correction.

LTA has furthermore complemented the plan in so far as detection of fraud and corruption is concerned by developing and implementing a whistleblowing policy. The policy sets out the channels and mechanisms on which to report fraud and corruption without fear of reprisals. The policy guarantees protection to all stakeholders raising genuine concerns regarding fraud and corruption. All cases reported are investigated and where wrong doing is found to have occurred, corrective action is taken immediately. 10. MINIMISING CONFLICT OF INTEREST The LTA policies require that all employees, including those charged with Supply Chain Management, disclose all their interest. Where potential for conflict is identified, LTA recuses the employee concerned from discharging any responsibility that would give rise to such conflict of interest. CODE OF CONDUCT The LTA Code of Conduct has been formulated in order to foster and maintain trust of the employees of the entity. The LTA Code of Conduct ensures that all employees adhere to appropriate standards of conduct in order to maintain and enhance the reputation of the entity. LTA has disciplinary rules that establish the acceptable standard of conduct required from employees which addresses specific consequences that an employee may face in contravening the policy. 11. HEALTH SAFETY AND ENVIRONMENTAL ISSUES

Although health and safety are valued in every facet of operations, the term health and safety relates primarily to occupational health safety and environmental concerns. Workplace Safety is not only employees whose health is at stake, but also employers who seek to both maintain a productive healthy work force and avoid penalties or legal liability as well as the public at large which can be affected by environmental fall-out from major workplace incidents. 12. COMPANY SECRETARY

Guides the Board collectively, and each director individually, as to their duties and responsibilities and make them aware of all legislation and regulations relevant to this entity. Ensures proper induction and orientation of directors, including assessing the specific training needs of directors and executive management in regard to their fiduciary and other

responsibilities. Is always available to provide comprehensive practical support and guidance to directors, with emphasis on supporting the non-executive directors and chairperson. Ensures unhindered access to information by all board and committee members that they can contribute to board meetings and other discussions. Compiles the board papers and for paginates them to ensure compliance with the required standards of good governance. Raises all matters that warrant the attention by the board. Ensures compliance with all relevant statutory and regulatory requirements, having due regard for the specific business interest of the company. Also assist carrying out corporate strategies by ensuring that the board's decisions and instructions are clearly communicated to the relevant persons.

13. SOCIAL RESPONSIBILITY

On 18 July 2016, the entity in partnership with Energy FM and Seshego Police Station conducted a social responsibility programme or corporate social investment programme at Seshego Victim Support Centre that houses victims of violence. LTA with Energy FM spent their day at the centre as part of the 67 minutes dedicated to community work. The activities on that day included amongst others cleaning of the rooms, offices and handing over of a new wendy house to be used as an additional office.

14. RISK AND AUDIT COMMITTEE REPORT We are pleased to present our report for the financial year ended 31 March 2017.


50

RISK AND AUDIT COMMITTEE MEMBERS AND ATTENDANCE

During the current financial year, the Board resolved that the Risk and Audit as well as the Finance and Procurement Committee should hold its meetings jointly for a period of a year. Three (3) Risk and Audit Committee meetings were held. A total of five (5) Joint Risk and Audit and Finance and Procurement Committee meetings were held during the year under review. The attendance details during the 2016/2017 financial year are indicated below:

Risk and Audit Committee

Name Designation No. of Meetings attended Date appointed Date Resigned

Ms. M Mokoka Chairperson 3 01 May 2015

Cllr. HO Mafefe Committee member 0 01 May 2015

1 Nov 2016

Ms. YM Mathabatha Committee member 3 01 Nov 2008

Mr PM Mongalo Committee member 3 01 Nov 2008

Cllr. J Maeko Committee member 0 12 Jan 2017

Joint Risk and Audit and Finance and Procurement Committee


Ms. M Mokoka Chairperson: Risk and Audit 4 01 May 2015

Mr. MO Phasha Chairperson: Finance and Procurement Committee

5 01 May 2015

Cllr. HO Mafefe Risk and Audit Committee member 1 01 May 2015

1 Nov 2016

Cllr. J Maeko Risk and Audit Committee member 0 12 Jan 2017

Ms. YM Mathabatha Risk and Audit Committee member 5 01 Nov 2008

Mr PM Mongalo Risk and Audit Committee member 5 01 Nov 2008

Dr. A De Klerk Finance and Procurement Committee member

1 01 May 2015

Mr. PP Motene Finance and Procurement Committee member

5 01 May 2015

Mr. TE Mabunda Finance and Procurement Committee member

0 01 May 2015

Risk and Audit Committee responsibilities

The Risk and Audit Committee reports that it has performed its responsibilities arising from sections 51(1)(a)(ii) and 76(4)(d) of the PFMA and Regulation 27.1 (of the Treasury Regulations).

The Risk and Audit Committee also reports that it has adopted appropriate formal terms of reference as its Charter. The Committee has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein. Effectiveness of internal controls procedures

The system of internal controls is designed to provide cost effective assurance that assets are safeguarded with liabilities and working capital efficiently managed. It can be confirmed that the system of internal control and risk management applied by the Limpopo Tourism Agency during the financial year is effective, efficient and transparent.

The provisions of the following instruments have assisted the entity in the internal control unit: PFMA 1/1999 (as amended), King III report as well as Corporate Governance requirements. The risk management is a continuous process and action plans and mitigations are in place to respond to the hindrances in achieving the goal the entity has for itself.

Management has been instructed to have the audit action plan, which is in the form of a turn-around strategy to ensure that the deficiencies and shortcomings identified during the Audit are addressed. The Risk and Audit Committee will continue to oversee and monitor the implementation of progress in this regard. Compliance with prescripts with regard to timely payments of creditors can only be accomplished if the budget and monthly transfers are adjusted to realistic levels. Apart from these matters, we can report that the system of internal control for the period under review was in general, effective and efficient. Internal Audit Much can be achieved if the work of the internal audit function is improved. The strategic internal audit plan is based on key areas of risk identified and the internal and external audit reports, thereby giving effect to the risk based approach. The Committee has expressed concern with regards to non-adherence to the internal audit plan which ranges from non-submission of quarterly reports to review of internal controls within the entity. The internal audit has been directed to improve its performance while the matter is being processed by the Board. The quality of in-year management and monthly/quarterly reports submitted in terms of the Public Finance Management Act and the Limpopo Tourism Act The Risk and Audit Committee is satisfied with the content and quality of the reports issued by Limpopo Tourism Agency during the year under review. The reports generated indicate the significant improvement from the previous financial years. Evaluation of Annual Financial Statements The Risk and Audit Committee has:- Afforded time to review the Annual Financial statements by the Chief Financial Officer. Reviewed and discussed the audited annual financial statements to be included in the annual report with the Auditor General South Africa and the Accounting Officer; Reviewed changes in accounting policies and practices; Reviewed the Limpopo Tourism Agency’s compliance with legal and regulatory provisions; and Reviewed the Auditor General of South Africa’s management report and responses thereof.


51

RISK AND AUDIT COMMITTEE MEMBERS AND ATTENDANCE

During the current financial year, the Board resolved that the Risk and Audit as well as the Finance and Procurement Committee should hold its meetings jointly for a period of a year. Three (3) Risk and Audit Committee meetings were held. A total of five (5) Joint Risk and Audit and Finance and Procurement Committee meetings were held during the year under review. The attendance details during the 2016/2017 financial year are indicated below:

Risk and Audit Committee


Ms. M Mokoka Chairperson 3 01 May 2015

Cllr. HO Mafefe Committee member 0 01 May 2015

1 Nov 2016

Ms. YM Mathabatha Committee member 3 01 Nov 2008

Mr PM Mongalo Committee member 3 01 Nov 2008

Cllr. J Maeko Committee member 0 12 Jan 2017

Joint Risk and Audit and Finance and Procurement Committee


Ms. M Mokoka Chairperson: Risk and Audit 4 01 May 2015

Mr. MO Phasha Chairperson: Finance and Procurement Committee

5 01 May 2015

Cllr. HO Mafefe Risk and Audit Committee member 1 01 May 2015

1 Nov 2016

Cllr. J Maeko Risk and Audit Committee member 0 12 Jan 2017

Ms. YM Mathabatha Risk and Audit Committee member 5 01 Nov 2008

Mr PM Mongalo Risk and Audit Committee member 5 01 Nov 2008

Dr. A De Klerk Finance and Procurement Committee member

1 01 May 2015

Mr. PP Motene Finance and Procurement Committee member

5 01 May 2015

Mr. TE Mabunda Finance and Procurement Committee member

0 01 May 2015

Risk and Audit Committee responsibilities

The Risk and Audit Committee reports that it has performed its responsibilities arising from sections 51(1)(a)(ii) and 76(4)(d) of the PFMA and Regulation 27.1 (of the Treasury Regulations).

The Risk and Audit Committee also reports that it has adopted appropriate formal terms of reference as its Charter. The Committee has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein. Effectiveness of internal controls procedures

The system of internal controls is designed to provide cost effective assurance that assets are safeguarded with liabilities and working capital efficiently managed. It can be confirmed that the system of internal control and risk management applied by the Limpopo Tourism Agency during the financial year is effective, efficient and transparent.

The provisions of the following instruments have assisted the entity in the internal control unit: PFMA 1/1999 (as amended), King III report as well as Corporate Governance requirements. The risk management is a continuous process and action plans and mitigations are in place to respond to the hindrances in achieving the goal the entity has for itself.

Management has been instructed to have the audit action plan, which is in the form of a turn-around strategy to ensure that the deficiencies and shortcomings identified during the Audit are addressed. The Risk and Audit Committee will continue to oversee and monitor the implementation of progress in this regard. Compliance with prescripts with regard to timely payments of creditors can only be accomplished if the budget and monthly transfers are adjusted to realistic levels. Apart from these matters, we can report that the system of internal control for the period under review was in general, effective and efficient. Internal Audit Much can be achieved if the work of the internal audit function is improved. The strategic internal audit plan is based on key areas of risk identified and the internal and external audit reports, thereby giving effect to the risk based approach. The Committee has expressed concern with regards to non-adherence to the internal audit plan which ranges from non-submission of quarterly reports to review of internal controls within the entity. The internal audit has been directed to improve its performance while the matter is being processed by the Board. The quality of in-year management and monthly/quarterly reports submitted in terms of the Public Finance Management Act and the Limpopo Tourism Act The Risk and Audit Committee is satisfied with the content and quality of the reports issued by Limpopo Tourism Agency during the year under review. The reports generated indicate the significant improvement from the previous financial years. Evaluation of Annual Financial Statements The Risk and Audit Committee has:- Afforded time to review the Annual Financial statements by the Chief Financial Officer. Reviewed and discussed the audited annual financial statements to be included in the annual report with the Auditor General South Africa and the Accounting Officer; Reviewed changes in accounting policies and practices; Reviewed the Limpopo Tourism Agency’s compliance with legal and regulatory provisions; and Reviewed the Auditor General of South Africa’s management report and responses thereof.


52

The Committee has expressed satisfaction to the tabling of the report. We therefore concur and accept the Auditor General of South Africa’s report on the annual financial statements. Integrity of the Annual Report The Risk and Audit Committee is satisfied with the integrity of the Annual Report on the performance of the Agency. The Risk and Audit Committee, with the assistance of the Internal Audit, will continue to monitor the processes and procedures in place to ensure improvement and consistency in the quality and integrity of performance information. Auditor General of South Africa The Audit Steering Committee meetings were held with the Auditor General and that has added value to the improvement of the audit opinion. The Audit report denotes an unqualified audit outcome; the unqualified audit opinion is accepted by the risk and audit committee. A foundation has been laid for the entity to achieve a clean audit outcome. Conclusion The shortcomings identified will continue to impact on the successful management of the Agency to achieve and meet its predetermined objectives and obtain an improved audit opinion. Given the afore-mentioned, the Committee will continue to implore on the Board, Chief Executive Officer, Executive Management Committee and staff to continue to work tirelessly with dedication and support from this Committee to obtain a clean audit opinion. On a personal note, as the Chairperson of the Risk and Audit, I wish to acknowledge the commitment, selflessness and dedication displayed by my colleagues in the Risk and Audit Committee, whilst acknowledging the cooperation from Board, Management and Auditor General. ___________________ M Mokoka (CA) Risk and Audit Committee Chairperson Limpopo Tourism Agency

Remuneration of board members

Refer to note 18 on the Annual Financial Statements


53

The Committee has expressed satisfaction to the tabling of the report. We therefore concur and accept the Auditor General of South Africa’s report on the annual financial statements. Integrity of the Annual Report The Risk and Audit Committee is satisfied with the integrity of the Annual Report on the performance of the Agency. The Risk and Audit Committee, with the assistance of the Internal Audit, will continue to monitor the processes and procedures in place to ensure improvement and consistency in the quality and integrity of performance information. Auditor General of South Africa The Audit Steering Committee meetings were held with the Auditor General and that has added value to the improvement of the audit opinion. The Audit report denotes an unqualified audit outcome; the unqualified audit opinion is accepted by the risk and audit committee. A foundation has been laid for the entity to achieve a clean audit outcome. Conclusion The shortcomings identified will continue to impact on the successful management of the Agency to achieve and meet its predetermined objectives and obtain an improved audit opinion. Given the afore-mentioned, the Committee will continue to implore on the Board, Chief Executive Officer, Executive Management Committee and staff to continue to work tirelessly with dedication and support from this Committee to obtain a clean audit opinion. On a personal note, as the Chairperson of the Risk and Audit, I wish to acknowledge the commitment, selflessness and dedication displayed by my colleagues in the Risk and Audit Committee, whilst acknowledging the cooperation from Board, Management and Auditor General. ___________________ M Mokoka (CA) Risk and Audit Committee Chairperson Limpopo Tourism Agency

Remuneration of board members

Refer to note 18 on the Annual Financial Statements

PART DHUMAN RESOURCE MANAGEMENT


54

INTRODUCTION

The Executive Council has approved the implementation of the rationalisation process with the aim of improving the management of State-Owned Nature Reserves (SONRs with the transfer of the tourism product development and hospitality function performed by the (LTA), as well as the affected staff in LTA (from the LWR Unit) to LEDET. The function and the budget including cost of employees of LWR were transferred from LTA to LEDET with effect 01 April 2016.

The transfer of personnel could not be finalised pending the determination that was requested by LEDET from the Department of Public Service and Administration (DPSA) , which then necesitated the review of the Executive Council’s decision on transfer of staff to that of secondment of 129 LWR employees including the 11 support staff as the best option.

LTA remained with 53 employees to do a focussed marketing of the Province with a singular mandate.

1. HUMAN RESOURCE OVERSIGHT STATISTICS

Personnel Cost by programme

Programme Total Expenditure for the entity (R)

Personnel Expenditure (R)

Personnel exp. as a % of total exp. (R)

No. of employees Average personnel cost per employee (R)

Office of the CEO 9 391 662 5 745 695 61% 8 718 212 Corporate Services 6 146 697 4 934 624 80% 16 308 414

Financial Management 27 370 892 5 280 027 19% 9 586 670

Integrated Destination Marketing 36 361 150 9 937 610 27% 20 496 881

Personnel cost by salary band

Level Personnel Expenditure (R) % of personnel exp. to total personnel cost (R)

No. of employees Average personnel cost per employee (R)

Top Management 1 540 832 6% 1 1 540 832 Senior Management 4 982 852 19% 4 1 245713 Professional qualified 10 699 529 41% 13 823 041 Skilled 5 928 922 23% 18 329 385 Semi-skilled 1 840 910 7% 10 184 091 Unskilled 904 910 3% 7 129 273 TOTAL 25 897 956 100% 53 488 641


55

Performance Rewards

Programme Performance rewards Personnel Expenditure (R’000) % of performance rewards to total personnel cost (R’000)

Top Management None None None

Senior Management None None None

Professional qualified None None None

Skilled None None None

Semi-skilled None None None

Unskilled None None None

TOTAL 00 00 00

Training Costs Directorate/ Business Unit Personnel Expenditure

(R) Training Expenditure

(R’000) Training Expenditure as a

% of Personnel Cost. No. of employees trained Avg training cost

per employee Office of the CEO 5 745 695 - 0% 0

Corporate Services 4 934 624 35 323 0.7% 3 11 774

Financial Management 5 280 027 42 400 0.8% 5 8 480

*129 LWR employees and 11 support staff members have been seconded to LEDET Employment and vacancies

Programme 2015/2016 No. of

Employees

2016/2017 Approved Posts

2016/2017 No. of

Employees

2016/2017 Vacancies

% of vacancies

Top Management 1 1 1 0 0% Senior Management 5 4 4 0 0% Professional qualified 21 19 13 6 32% Skilled 27 26 18 8 31% Semi-skilled 98 15 10 5 33% Unskilled 41 8 7 1 13% TOTAL 193 73 53 20 27%

*129 LWR employees and 11 support staff members have been seconded to LEDET


56

.Employment changes

Salary Band Employment at beginning of period *Appointments Terminations Employment at end of the period

Top Management 1 0 0 1 Senior Management 5 0 1 4 Professional qualified 21 1 9 13 Skilled 27 0 9 18 Semi-skilled 98 0 88 98 Unskilled 41 0 34 7 Total 193 1 141 53

Reasons for staff leaving

Reason Number % of total no. of staff leaving

Death 0 0% Resignation 1 2% Dismissal 0 0% Retirement 0 0% Ill health 0 0% Expiry of contract 0 0% *Other 140 262%

Total 141 264%

Secondment to LEDET.

Labour Relations: Misconduct and disciplinary action

Nature of disciplinary Action Number Verbal Warning 0 Written Warning 1 Final Written warning 0 Dismissal 0 Other 0

* Abscondment


57

.Employment changes

Salary Band Employment at beginning of period *Appointments Terminations Employment at end of the period

Top Management 1 0 0 1 Senior Management 5 0 1 4 Professional qualified 21 1 9 13 Skilled 27 0 9 18 Semi-skilled 98 0 88 98 Unskilled 41 0 34 7 Total 193 1 141 53

Reasons for staff leaving

Reason Number % of total no. of staff leaving

Death 0 0% Resignation 1 2% Dismissal 0 0% Retirement 0 0% Ill health 0 0% Expiry of contract 0 0% *Other 140 262%

Total 141 264%

Secondment to LEDET.

Labour Relations: Misconduct and disciplinary action

Nature of disciplinary Action Number Verbal Warning 0 Written Warning 1 Final Written warning 0 Dismissal 0 Other 0

* Abscondment

Equity Target and Employment Equity Status

Levels MALE AFRICAN COLOURED INDIAN WHITE

Current Target Current Target Current Target Current Target Top Management 1 1 0 0 0 0 0 0 Senior Management 3 3 0 0 0 0 0 0 Professional qualified 10 11 1 1 0 0 0 0 Skilled 5 8 0 1 0 0 0 0 Semi-skilled 7 8 0 0 0 0 0 0 Unskilled 1 1 0 0 0 0 0 0 TOTAL 27 32 1 2 0 0 0 0

Levels FEMALE AFRICAN COLOURED INDIAN WHITE Current Target Current Target Current Target Current Target Top Management 0 0 0 0 0 0 0 0 Senior Management 1 1 0 0 0 0 0 0 Professional qualified 2 6 0 0 0 0 0 1 Skilled 13 16 0 0 0 0 0 1 Semi-skilled 3 7 0 0 0 0 0 0 Unskilled 6 7 0 0 0 0 0 0 TOTAL 25 37 0 0 0 0 0 2

Levels Disabled Staff Male Female

Current Target Current Target Top Management 0 0 0 0 Senior Management 0 0 0 0 Professional qualified 0 0 0 1 Skilled 0 0 0 0 Semi-skilled 0 0 0 2 Unskilled 0 0 0 0 TOTAL 0 0 0 2


58

1. STATEMENT OF RESPONSIBILITY Statement of Responsibility for the Annual Financial Statements for the year ended 31 March 2017 The Accounting Authority is responsible for the preparation of the public entity’s annual financial statements and for the judgements made in this information. The Accounting Authority is responsible for establishing, and implementing a system of internal control designed to provide reasonable assurance as to the integrity and reliability of the annual financial statements. In my opinion, the financial statements fairly reflect the operations of the public entity for the financial year ended 31 March 2017. The external auditors are engaged to express an independent opinion on the AFS of the public entity. The Agency’s annual financial statements for the year ended 31 March 2017 have been audited by the external auditors and their report is presented from page 62 to 67. The Annual Financial Statements of the public entity set out on page 68 to page 114 have been approved. _________________ TG KOTSEDI INTERIM CHIEF EXECUTIVE OFFICER Limpopo Tourism Agency _________________ KA DIPELA CHAIRPERSON OF THE BOARD Limpopo Tourism Agency

PART EFINANCIAL INFORMATION


59

1. STATEMENT OF RESPONSIBILITY Statement of Responsibility for the Annual Financial Statements for the year ended 31 March 2017 The Accounting Authority is responsible for the preparation of the public entity’s annual financial statements and for the judgements made in this information. The Accounting Authority is responsible for establishing, and implementing a system of internal control designed to provide reasonable assurance as to the integrity and reliability of the annual financial statements. In my opinion, the financial statements fairly reflect the operations of the public entity for the financial year ended 31 March 2017. The external auditors are engaged to express an independent opinion on the AFS of the public entity. The Agency’s annual financial statements for the year ended 31 March 2017 have been audited by the external auditors and their report is presented from page 62 to 67. The Annual Financial Statements of the public entity set out on page 68 to page 114 have been approved. _________________ TG KOTSEDI INTERIM CHIEF EXECUTIVE OFFICER Limpopo Tourism Agency _________________ KA DIPELA CHAIRPERSON OF THE BOARD Limpopo Tourism Agency


60

2. REPORT OF THE CHIEF EXECUTIVE OFFICER

BUDGET ALLOCATION During the year under review, the Agency received a budget of R89,262m including R30,0m as conditional grant for integrated destination marketing. REVENUE During the year under review, the agency revenue collection amounted to R0,858m as compared to R10,481m: 2015-16 while the budget was R89,262m and R167,01m :2015-16. The cash injection of R30,0m was conditional grant for integrated destination marketing for generic marketing of the Province. EXPENDITURE

During the year under review, the total expenditure for the entity R77,381m including R26,259m on destination marketing, while the balance of R11,881m was committed as at the end of the reporting period. The details of the breakdown in expenditure are contained on page of 42 of the Annual Financial Statements. CAPACITY CONSTRAINTS AND CHALLENGES In the year under review, the previously identified capacity constraints in the Finance and Supply Chain Management Unit. These constraints have continued to compromise internal controls and segregation of duties, which has been worsened by the transfer of support staff to the department when the LWR function was transferred. DISCONTINUED ACTIVITIES The entity has discontinued the LWR function that was transferred to the department with effect from 1 April 2016. REQUEST FOR FUNDS ROLL OVER No request for roll overs was made by the entity as at the reporting period. SUPPLY CHAIN MANAGEMENT The Supply Chain Management Unit has been established and operates under direct supervision of the Chief Financial Officer. The Unit has embarked on the implementation of standard procedures that would guide its operations to improve the state of internal controls.


61

2. REPORT OF THE CHIEF EXECUTIVE OFFICER

BUDGET ALLOCATION During the year under review, the Agency received a budget of R89,262m including R30,0m as conditional grant for integrated destination marketing. REVENUE During the year under review, the agency revenue collection amounted to R0,858m as compared to R10,481m: 2015-16 while the budget was R89,262m and R167,01m :2015-16. The cash injection of R30,0m was conditional grant for integrated destination marketing for generic marketing of the Province. EXPENDITURE

During the year under review, the total expenditure for the entity R77,381m including R26,259m on destination marketing, while the balance of R11,881m was committed as at the end of the reporting period. The details of the breakdown in expenditure are contained on page of 42 of the Annual Financial Statements. CAPACITY CONSTRAINTS AND CHALLENGES In the year under review, the previously identified capacity constraints in the Finance and Supply Chain Management Unit. These constraints have continued to compromise internal controls and segregation of duties, which has been worsened by the transfer of support staff to the department when the LWR function was transferred. DISCONTINUED ACTIVITIES The entity has discontinued the LWR function that was transferred to the department with effect from 1 April 2016. REQUEST FOR FUNDS ROLL OVER No request for roll overs was made by the entity as at the reporting period. SUPPLY CHAIN MANAGEMENT The Supply Chain Management Unit has been established and operates under direct supervision of the Chief Financial Officer. The Unit has embarked on the implementation of standard procedures that would guide its operations to improve the state of internal controls.

CHALLENGES EXPERIENCED Lack of capacity remains a great challenge in the Supply Chain Management Unit. Adequate Supply Chain Management capacity in the form of appropriate organisational structure and skilled supply chain management personnel are key success factors to ensure compliance to the prescripts and proper segregation of duties. Through this process of segregation of duties, greater efficiency and risk management is promoted. PRIOR YEAR AUDIT ISSUES The audit report from the Auditor General from page 62 to 67 detailed the issues. These issues will be resolved by compilation of the audit action plan and the development of the risk register to mitigate the risks identified. LOOK AND FUTURE PLANS TO ADDRESS FINANCIAL CHALLENGES As the new entity, there is a dire need to restructure and re-design the new organisational structure that will be aligned to the new mandate and assist in the achievement of the entity s objectives. The whole of the CFO division needs to be adequately capacitated due to the transfer of support staff to the department, which has left a huge gap in the division. This has to be effected to as a matter of urgency to ensure segregation of duties for continued maintenance of internal controls. EVENTS AFTER THE REPORTING DATE The events that transpired after the reporting date includes the resignation of the erstwhile CEO (Mr. N Matlala) on 31 April 2017 and the issuing of the determination by the Premier to transfer LWR staff to LEDET with effect from 1 June 2017. The entity is a non-business entity under schedule 3 (C) of the PFMA and as such it is 100% funded from government appropriations. ACKNOWLEDGEMENT We would like to express our sincere gratitude to the Board, LTA’s staff and Limpopo Tourism Industry for the support. _________________ TG KOTSEDI INTERIM CHIEF EXECUTIVE OFFICER LIMPOPO TOURISM AGENCY

CHALLENGES EXPERIENCED Lack of capacity remains a great challenge in the Supply Chain Management Unit. Adequate Supply Chain Management capacity in the form of appropriate organisational structure and skilled supply chain management personnel are key success factors to ensure compliance to the prescripts and proper segregation of duties. Through this process of segregation of duties, greater efficiency and risk management is promoted. PRIOR YEAR AUDIT ISSUES The audit report from the Auditor General from page 62 to 67 detailed the issues. These issues will be resolved by compilation of the audit action plan and the development of the risk register to mitigate the risks identified. LOOK AND FUTURE PLANS TO ADDRESS FINANCIAL CHALLENGES As the new entity, there is a dire need to restructure and re-design the new organisational structure that will be aligned to the new mandate and assist in the achievement of the entity s objectives. The whole of the CFO division needs to be adequately capacitated due to the transfer of support staff to the department, which has left a huge gap in the division. This has to be effected to as a matter of urgency to ensure segregation of duties for continued maintenance of internal controls. EVENTS AFTER THE REPORTING DATE The events that transpired after the reporting date includes the resignation of the erstwhile CEO (Mr. N Matlala) on 31 April 2017 and the issuing of the determination by the Premier to transfer LWR staff to LEDET with effect from 1 June 2017. The entity is a non-business entity under schedule 3 (C) of the PFMA and as such it is 100% funded from government appropriations. ACKNOWLEDGEMENT We would like to express our sincere gratitude to the Board, LTA’s staff and Limpopo Tourism Industry for the support. _________________ TG KOTSEDI INTERIM CHIEF EXECUTIVE OFFICER LIMPOPO TOURISM AGENCY


62

62

Rep

ort o

f the

aud

itor-

gene

ral t

o th

e Li

mpo

po P

rovi

ncia

l Leg

isla

ture

on

Lim

popo

Tou

rism

Age

ncy

Rep

ort o

n th

e au

dit o

f the

fina

ncia

l sta

tem

ents

Opi

nion

1.

I hav

e au

dite

d th

e fin

anci

al s

tate

men

ts o

f the

Lim

popo

Tou

rism

Age

ncy

set o

ut o

n pa

ges

75 to

114

w

hich

com

pris

es th

e st

atem

ent o

f fin

anci

al p

ositi

on a

s at

31

Mar

ch 2

017,

the

stat

emen

t of f

inan

cial

pe

rform

ance

, sta

tem

ent o

f cha

nges

in n

et a

sset

s, s

tate

men

t of c

ash

flow

s an

d th

e st

atem

ent o

f co

mpa

rison

of b

udge

t and

act

ual a

mou

nts

for t

he y

ear t

hen

ende

d, a

s w

ell a

s th

e no

tes

to th

e fin

anci

al

stat

emen

ts, i

nclu

ding

a s

umm

ary

of s

igni

fican

t acc

ount

ing

polic

ies.

2.

In m

y op

inio

n, th

e fin

anci

al s

tate

men

ts p

rese

nt fa

irly,

in a

ll m

ater

ial r

espe

cts,

the

finan

cial

pos

ition

of t

he

Lim

popo

Tou

rism

Age

ncy

as a

t 31

Mar

ch 2

017,

and

its

finan

cial

per

form

ance

and

cas

h flo

ws

for t

he

year

then

end

ed in

acc

orda

nce

with

Sou

th A

frica

n St

atem

ents

of G

ener

ally

Rec

ogni

sed

Acco

untin

g Pr

actic

e (S

A St

anda

rds

of G

RAP

) and

the

requ

irem

ents

of t

he P

ublic

Fin

ance

Man

agem

ent A

ct o

f So

uth

Afric

a, 1

999

(Act

No.

1 o

f 199

9) (P

FMA)

.

Bas

is fo

r opi

nion

3.

I con

duct

ed m

y au

dit i

n ac

cord

ance

with

the

Inte

rnat

iona

l Sta

ndar

ds o

n Au

ditin

g (IS

As).

My

resp

onsi

bilit

ies

unde

r tho

se s

tand

ards

are

furth

er d

escr

ibed

in th

e au

dito

r-gen

eral

’s re

spon

sibi

litie

s fo

r th

e au

dit o

f the

fina

ncia

l sta

tem

ents

sec

tion

of m

y re

port.

4.

I am

inde

pend

ent o

f the

pub

lic e

ntity

in a

ccor

danc

e w

ith th

e In

tern

atio

nal E

thic

s St

anda

rds

Boar

d fo

r Ac

coun

tant

s’ C

ode

of e

thic

s fo

r pro

fess

iona

l acc

ount

ants

(IES

BA c

ode)

toge

ther

with

the

ethi

cal

requ

irem

ents

that

are

rele

vant

to m

y au

dit i

n So

uth

Afric

a. I

have

fulfi

lled

my

othe

r eth

ical

re

spon

sibi

litie

s in

acc

orda

nce

with

thes

e re

quire

men

ts a

nd th

e IE

SBA

code

.

5.

I bel

ieve

that

the

audi

t evi

denc

e I h

ave

obta

ined

is s

uffic

ient

and

app

ropr

iate

to p

rovi

de a

bas

is fo

r my

opin

ion.

Emph

asis

of m

atte

r

6.

I dra

w a

ttent

ion

to th

e m

atte

rs b

elow

. My

opin

ion

is n

ot m

odifi

ed in

resp

ect o

f the

se m

atte

rs.

Sign

ifica

nt u

ncer

tain

ties

7.

With

refe

renc

e to

not

e 26

to th

e fin

anci

al s

tate

men

ts, t

he e

ntity

is a

def

enda

nt in

var

ious

law

suits

with

se

rvic

e pr

ovid

ers

and

form

er b

oard

mem

bers

with

a to

tal p

ossi

ble

cash

out

flow

of R

16

501

600

(201

6:

R 1

4 32

9 48

6). T

he e

ntity

is o

ppos

ing

the

clai

ms.

The

ulti

mat

e ou

tcom

e of

the

mat

ters

can

not p

rese

ntly

be

det

erm

ined

and

no

prov

isio

n fo

r any

liab

ility

that

may

resu

lt ha

s be

en m

ade

in th

e fin

anci

al

stat

emen

ts.

Irreg

ular

exp

endi

ture

8.

With

refe

renc

e to

not

e 34

to th

e fin

anci

al s

tate

men

ts, t

he e

ntity

incu

rred

irreg

ular

exp

endi

ture

am

ount

ing

to R

506

844

(201

6: R

1 8

72 6

20) d

ue to

the

cont

rave

ntio

n of

sup

ply

chai

n m

anag

emen

t (S

CM

) reg

ulat

ions

.

63

Rest

atem

ent o

f cor

resp

ondi

ng fi

gure

s

9.

As d

iscl

osed

in n

ote

29 to

the

finan

cial

sta

tem

ents

, the

cor

resp

ondi

ng fi

gure

s fo

r 31

Mar

ch 2

016

have

be

en re

stat

ed a

s a

resu

lt of

erro

rs d

isco

vere

d in

the

finan

cial

sta

tem

ents

of t

he e

ntity

at,

and

for t

he

year

end

ed, 3

1 M

arch

201

7.

Oth

er m

atte

rs

10. I

dra

w a

ttent

ion

to th

e m

atte

rs b

elow

. My

opin

ion

is n

ot m

odifi

ed in

resp

ect o

f the

se m

atte

rs.

Unau

dite

d su

pple

men

tary

sch

edul

e

11. T

he s

uppl

emen

tary

info

rmat

ion

set o

ut o

n pa

ges

72-7

4 do

es n

ot fo

rm p

art o

f the

fina

ncia

l sta

tem

ents

an

d is

pre

sent

ed a

s ad

ditio

nal i

nfor

mat

ion.

I ha

ve n

ot a

udite

d th

ese

sche

dule

s an

d, a

ccor

ding

ly, I

do

not e

xpre

ss a

n op

inio

n th

ereo

n.

Resp

onsi

bilit

ies

of th

e ac

coun

ting

auth

ority

for t

he fi

nanc

ial s

tate

men

ts

12. T

he b

oard

of d

irect

ors,

whi

ch c

onst

itute

s th

e ac

coun

ting

auth

ority

is re

spon

sibl

e fo

r the

pre

para

tion

and

fair

pres

enta

tion

of th

e fin

anci

al s

tate

men

ts in

acc

orda

nce

with

Sou

th A

frica

n St

atem

ents

of G

ener

ally

R

ecog

nise

d Ac

coun

ting

Prac

tice

(SA

Stan

dard

s of

GR

AP) a

nd th

e re

quire

men

ts o

f the

Pub

lic F

inan

ce

Man

agem

ent A

ct o

f Sou

th A

frica

, 199

9 (A

ct N

o. 1

of 1

999)

(PFM

A) a

nd fo

r suc

h in

tern

al c

ontro

l as

the

acco

untin

g au

thor

ity d

eter

min

es is

nec

essa

ry to

ena

ble

the

prep

arat

ion

of f

inan

cial

sta

tem

ents

that

are

fre

e fro

m m

ater

ial m

isst

atem

ent,

whe

ther

due

to fr

aud

or e

rror.

13. I

n pr

epar

ing

the

finan

cial

sta

tem

ents

, the

acc

ount

ing

auth

ority

is re

spon

sibl

e fo

r ass

essi

ng th

e Li

mpo

po

Tour

ism

Age

ncy’

s ab

ility

to c

ontin

ue a

s a

goin

g co

ncer

n, d

iscl

osin

g, a

s ap

plic

able

, mat

ters

rela

ting

to

goin

g co

ncer

n an

d us

ing

the

goin

g co

ncer

n ba

sis

of a

ccou

ntin

g un

less

ther

e is

an

inte

ntio

n to

liqu

idat

e th

e ag

ency

or t

o ce

ase

oper

atio

ns, o

r the

re is

no

real

istic

alte

rnat

ive

but t

o do

so.

Audi

tor-

gene

ral’s

resp

onsi

bilit

ies

for t

he a

udit

of th

e fin

anci

al s

tate

men

ts

14. M

y ob

ject

ives

are

to o

btai

n re

ason

able

ass

uran

ce a

bout

whe

ther

the

finan

cial

sta

tem

ents

as

a w

hole

ar

e fre

e fro

m m

ater

ial m

isst

atem

ent,

whe

ther

due

to fr

aud

or e

rror,

and

to is

sue

an a

udito

r’s re

port

that

in

clud

es m

y op

inio

n. R

easo

nabl

e as

sura

nce

is a

hig

h le

vel o

f ass

uran

ce, b

ut is

not

a g

uara

ntee

that

an

audi

t con

duct

ed in

acc

orda

nce

with

ISAs

will

alw

ays

dete

ct a

mat

eria

l mis

stat

emen

t whe

n it

exis

ts.

Mis

stat

emen

ts c

an a

rise

from

frau

d or

erro

r and

are

con

side

red

mat

eria

l if,

indi

vidu

ally

or i

n th

e ag

greg

ate,

they

cou

ld re

ason

ably

be

expe

cted

to in

fluen

ce th

e ec

onom

ic d

ecis

ions

of u

sers

take

n on

th

e ba

sis

of th

ese

finan

cial

sta

tem

ents

.

15. A

furth

er d

escr

iptio

n of

my

resp

onsi

bilit

ies

for t

he a

udit

of th

e fin

anci

al s

tate

men

ts is

incl

uded

in th

e an

nexu

re to

the

audi

tor’s

repo

rt.

Repo

rt on

the

audi

t of t

he a

nnua

l per

form

ance

repo

rt

Intro

duct

ion

and

scop

e

16. I

n ac

cord

ance

with

the

Publ

ic A

udit

Act o

f Sou

th A

frica

, 200

4 (A

ct N

o. 2

5 of

200

4) (P

AA) a

nd th

e ge

nera

l not

ice

issu

ed in

term

s th

ereo

f I h

ave

a re

spon

sibi

lity

to re

port

mat

eria

l fin

ding

s on

the

repo

rted

perfo

rman

ce in

form

atio

n ag

ains

t pre

dete

rmin

ed o

bjec

tives

for s

elec

ted

prog

ram

mes

pre

sent

ed in

the

annu

al p

erfo

rman

ce re

port.

I pe

rform

ed p

roce

dure

s to

iden

tify

findi

ngs

but n

ot to

gat

her e

vide

nce

to

expr

ess

assu

ranc

e.


63

63

Rest

atem

ent o

f cor

resp

ondi

ng fi

gure

s

9.

As d

iscl

osed

in n

ote

29 to

the

finan

cial

sta

tem

ents

, the

cor

resp

ondi

ng fi

gure

s fo

r 31

Mar

ch 2

016

have

be

en re

stat

ed a

s a

resu

lt of

erro

rs d

isco

vere

d in

the

finan

cial

sta

tem

ents

of t

he e

ntity

at,

and

for t

he

year

end

ed, 3

1 M

arch

201

7.

Oth

er m

atte

rs

10. I

dra

w a

ttent

ion

to th

e m

atte

rs b

elow

. My

opin

ion

is n

ot m

odifi

ed in

resp

ect o

f the

se m

atte

rs.

Unau

dite

d su

pple

men

tary

sch

edul

e

11. T

he s

uppl

emen

tary

info

rmat

ion

set o

ut o

n pa

ges

72-7

4 do

es n

ot fo

rm p

art o

f the

fina

ncia

l sta

tem

ents

an

d is

pre

sent

ed a

s ad

ditio

nal i

nfor

mat

ion.

I ha

ve n

ot a

udite

d th

ese

sche

dule

s an

d, a

ccor

ding

ly, I

do

not e

xpre

ss a

n op

inio

n th

ereo

n.

Resp

onsi

bilit

ies

of th

e ac

coun

ting

auth

ority

for t

he fi

nanc

ial s

tate

men

ts

12. T

he b

oard

of d

irect

ors,

whi

ch c

onst

itute

s th

e ac

coun

ting

auth

ority

is re

spon

sibl

e fo

r the

pre

para

tion

and

fair

pres

enta

tion

of th

e fin

anci

al s

tate

men

ts in

acc

orda

nce

with

Sou

th A

frica

n St

atem

ents

of G

ener

ally

R

ecog

nise

d Ac

coun

ting

Prac

tice

(SA

Stan

dard

s of

GR

AP) a

nd th

e re

quire

men

ts o

f the

Pub

lic F

inan

ce

Man

agem

ent A

ct o

f Sou

th A

frica

, 199

9 (A

ct N

o. 1

of 1

999)

(PFM

A) a

nd fo

r suc

h in

tern

al c

ontro

l as

the

acco

untin

g au

thor

ity d

eter

min

es is

nec

essa

ry to

ena

ble

the

prep

arat

ion

of f

inan

cial

sta

tem

ents

that

are

fre

e fro

m m

ater

ial m

isst

atem

ent,

whe

ther

due

to fr

aud

or e

rror.

13. I

n pr

epar

ing

the

finan

cial

sta

tem

ents

, the

acc

ount

ing

auth

ority

is re

spon

sibl

e fo

r ass

essi

ng th

e Li

mpo

po

Tour

ism

Age

ncy’

s ab

ility

to c

ontin

ue a

s a

goin

g co

ncer

n, d

iscl

osin

g, a

s ap

plic

able

, mat

ters

rela

ting

to

goin

g co

ncer

n an

d us

ing

the

goin

g co

ncer

n ba

sis

of a

ccou

ntin

g un

less

ther

e is

an

inte

ntio

n to

liqu

idat

e th

e ag

ency

or t

o ce

ase

oper

atio

ns, o

r the

re is

no

real

istic

alte

rnat

ive

but t

o do

so.

Audi

tor-

gene

ral’s

resp

onsi

bilit

ies

for t

he a

udit

of th

e fin

anci

al s

tate

men

ts

14. M

y ob

ject

ives

are

to o

btai

n re

ason

able

ass

uran

ce a

bout

whe

ther

the

finan

cial

sta

tem

ents

as

a w

hole

ar

e fre

e fro

m m

ater

ial m

isst

atem

ent,

whe

ther

due

to fr

aud

or e

rror,

and

to is

sue

an a

udito

r’s re

port

that

in

clud

es m

y op

inio

n. R

easo

nabl

e as

sura

nce

is a

hig

h le

vel o

f ass

uran

ce, b

ut is

not

a g

uara

ntee

that

an

audi

t con

duct

ed in

acc

orda

nce

with

ISAs

will

alw

ays

dete

ct a

mat

eria

l mis

stat

emen

t whe

n it

exis

ts.

Mis

stat

emen

ts c

an a

rise

from

frau

d or

erro

r and

are

con

side

red

mat

eria

l if,

indi

vidu

ally

or i

n th

e ag

greg

ate,

they

cou

ld re

ason

ably

be

expe

cted

to in

fluen

ce th

e ec

onom

ic d

ecis

ions

of u

sers

take

n on

th

e ba

sis

of th

ese

finan

cial

sta

tem

ents

.

15. A

furth

er d

escr

iptio

n of

my

resp

onsi

bilit

ies

for t

he a

udit

of th

e fin

anci

al s

tate

men

ts is

incl

uded

in th

e an

nexu

re to

the

audi

tor’s

repo

rt.

Repo

rt on

the

audi

t of t

he a

nnua

l per

form

ance

repo

rt

Intro

duct

ion

and

scop

e

16. I

n ac

cord

ance

with

the

Publ

ic A

udit

Act o

f Sou

th A

frica

, 200

4 (A

ct N

o. 2

5 of

200

4) (P

AA) a

nd th

e ge

nera

l not

ice

issu

ed in

term

s th

ereo

f I h

ave

a re

spon

sibi

lity

to re

port

mat

eria

l fin

ding

s on

the

repo

rted

perfo

rman

ce in

form

atio

n ag

ains

t pre

dete

rmin

ed o

bjec

tives

for s

elec

ted

prog

ram

mes

pre

sent

ed in

the

annu

al p

erfo

rman

ce re

port.

I pe

rform

ed p

roce

dure

s to

iden

tify

findi

ngs

but n

ot to

gat

her e

vide

nce

to

expr

ess

assu

ranc

e.


64

64

17. M

y pr

oced

ures

add

ress

the

repo

rted

perfo

rman

ce in

form

atio

n, w

hich

mus

t be

base

d on

the

appr

oved

pe

rform

ance

pla

nnin

g do

cum

ents

of t

he p

ublic

ent

ity. I

hav

e no

t eva

luat

ed th

e co

mpl

eten

ess

and

appr

opria

tene

ss o

f the

per

form

ance

indi

cato

rs in

clud

ed in

the

plan

ning

doc

umen

ts. M

y pr

oced

ures

als

o di

d no

t ext

end

to a

ny d

iscl

osur

es o

r ass

ertio

ns re

latin

g to

pla

nned

per

form

ance

stra

tegi

es a

nd

info

rmat

ion

in re

spec

t of f

utur

e pe

riods

that

may

be

incl

uded

as

part

of th

e re

porte

d pe

rform

ance

in

form

atio

n. A

ccor

ding

ly, m

y fin

ding

s do

not

ext

end

to th

ese

mat

ters

.

18. I

eva

luat

ed th

e us

eful

ness

and

relia

bilit

y of

the

repo

rted

perfo

rman

ce in

form

atio

n in

acc

orda

nce

with

the

crite

ria d

evel

oped

from

the

perfo

rman

ce m

anag

emen

t and

repo

rting

fram

ewor

k, a

s de

fined

in th

e ge

nera

l not

ice,

for t

he fo

llow

ing

sele

cted

pro

gram

mes

obj

ectiv

es p

rese

nted

in th

e an

nual

per

form

ance

re

port

of th

e ag

ency

for t

he y

ear e

nded

31

Mar

ch 2

017:

Prog

ram

mes

Pa

ges

in th

e an

nual

pe

rform

ance

repo

rt Fi

nanc

ial m

anag

emen

t 31

– 3

3 In

tegr

ated

des

tinat

ion

mar

ketin

g 34

- 37

19

. I p

erfo

rmed

pro

cedu

res

to d

eter

min

e w

heth

er th

e re

porte

d pe

rform

ance

info

rmat

ion

was

pro

perly

pr

esen

ted

and

whe

ther

per

form

ance

was

con

sist

ent w

ith th

e ap

prov

ed p

erfo

rman

ce p

lann

ing

docu

men

ts. I

per

form

ed fu

rther

pro

cedu

res

to d

eter

min

e w

heth

er th

e in

dica

tors

and

rela

ted

targ

ets

wer

e m

easu

rabl

e an

d re

leva

nt, a

nd a

sses

sed

the

relia

bilit

y of

the

repo

rted

perfo

rman

ce in

form

atio

n to

de

term

ine

whe

ther

it w

as v

alid

, acc

urat

e an

d co

mpl

ete.

20. T

he m

ater

ial f

indi

ngs

in re

spec

t of t

he u

sefu

lnes

s an

d re

liabi

lity

of th

e se

lect

ed p

rogr

amm

es a

re a

s fo

llow

s:

Prog

ram

me

3: F

inan

ce M

anag

emen

t

Perc

enta

ge o

f inv

oice

s pa

id w

ithin

30

days

21. T

he s

yste

ms

and

proc

esse

s to

ena

ble

relia

ble

repo

rting

of a

ctua

l ser

vice

del

iver

y ag

ains

t the

indi

cato

r w

ere

not a

dequ

atel

y de

sign

ed a

s th

e in

voic

e re

gist

er th

at w

as m

aint

aine

d to

sub

stan

tiate

the

perc

enta

ge o

f inv

oice

s th

at w

ere

paid

with

in 3

0 da

ys w

as n

ot m

aint

aine

d fo

r the

full

finan

cial

yea

r and

w

as o

nly

mai

ntai

ned

from

Nov

embe

r 201

6. T

he in

dica

tor i

s th

eref

ore

not r

elia

ble

as it

doe

s co

ver t

he

entir

e ye

ar u

nder

revie

w, a

s re

quire

d by

the

FMPP

I.

22. T

he re

porte

d ac

hiev

emen

t for

the

perc

enta

ge o

f inv

oice

s pa

id w

ithin

30

days

was

mis

stat

ed a

s th

e ev

iden

ce p

rovi

ded

indi

cate

d 96

% a

nd n

ot 9

0% a

s re

porte

d.

Oth

er m

atte

rs

23. I

dra

w a

ttent

ion

to th

e m

atte

r bel

ow.

Achi

evem

ent o

f pla

nned

targ

ets

24. R

efer

to th

e an

nual

per

form

ance

repo

rt on

pag

es 2

1 to

38

for i

nfor

mat

ion

on th

e ac

hiev

emen

t of

plan

ned

targ

ets

for t

he y

ear a

nd e

xpla

natio

ns p

rovi

ded

for t

he u

nder

/ove

r ach

ieve

men

t of a

sig

nific

ant

num

ber o

f tar

gets

. Thi

s in

form

atio

n sh

ould

be

cons

ider

ed in

the

cont

ext o

f the

mat

eria

l fin

ding

s ex

pres

sed

on th

e us

eful

ness

of t

he re

porte

d pe

rform

ance

info

rmat

ion

in p

arag

raph

2.3

.2 o

f thi

s re

port.

65

Repo

rt on

aud

it of

com

plia

nce

with

legi

slat

ion

Intro

duct

ion

and

scop

e

25. I

n ac

cord

ance

with

the

PAA

and

the

gene

ral n

otice

issu

ed in

term

s th

ereo

f, I h

ave

a re

spon

sibilit

y to

re

port

mat

eria

l fin

ding

s on

the

com

plia

nce

of th

e pu

blic

entit

y wi

th s

pecif

ic m

atte

rs in

key

legi

slatio

n. I

perfo

rmed

pro

cedu

res

to id

entif

y fin

ding

s bu

t not

to g

athe

r evid

ence

to e

xpre

ss a

ssur

ance

.

Annu

al fi

nanc

ial s

tate

men

ts, p

erfo

rman

ce a

nd a

nnua

l rep

orts

26. T

he fi

nanc

ial s

tate

men

ts s

ubm

itted

for a

uditin

g we

re n

ot p

repa

red

in a

ccor

danc

e wi

th th

e pr

escr

ibed

fin

ancia

l rep

ortin

g fra

mew

ork

as re

quire

d by

sec

tion

55(1

)(b) o

f the

PFM

A. M

ater

ial m

issta

tem

ents

of

liabi

lities

, rev

enue

, res

erve

s an

d di

sclo

sure

item

s id

entif

ied

by th

e au

dito

rs in

the

subm

itted

fina

ncia

l st

atem

ents

wer

e co

rrect

ed, r

esul

ting

in th

e fin

ancia

l sta

tem

ents

rece

iving

an

unqu

alifie

d au

dit o

pini

on.

Proc

urem

ent a

nd c

ontra

ct m

anag

emen

t

27. P

erso

ns in

the

serv

ice o

f the

pub

lic e

ntity

who

se c

lose

fam

ily m

embe

rs, p

artn

ers

or a

ssoc

iate

s ha

d a

priva

te o

r bus

ines

s in

tere

st in

con

tract

s aw

arde

d by

the

publ

ic en

tity

faile

d to

disc

lose

suc

h in

tere

st, a

s re

quire

d by

trea

sury

regu

latio

n 16

A8.4

.

Expe

nditu

re m

anag

emen

t

28. E

ffect

ive s

teps

wer

e no

t tak

en to

pre

vent

irre

gula

r as

well a

s fru

itless

and

was

tefu

l exp

endi

ture

as

requ

ired

by s

ectio

n 51

(1)(b

)(ii)

of th

e PF

MA.

Cons

eque

nces

man

agem

ent

29. E

ffect

ive a

nd a

ppro

pria

te d

iscip

linar

y st

eps

were

not

take

n ag

ains

t offi

cials

who

incu

rred

and

perm

itted

irr

egul

ar e

xpen

ditu

re, a

nd fr

uitle

ss a

nd w

aste

ful e

xpen

ditu

re, a

s re

quire

d by

sec

tion

51(1

)(e)(i

ii) o

f the

PF

MA.

Oth

er in

form

atio

n

30. T

he a

genc

y’s a

ccou

ntin

g au

thor

ity is

resp

onsib

le fo

r the

oth

er in

form

atio

n. T

he o

ther

info

rmat

ion

com

prise

s th

e in

form

atio

n in

clude

d in

the

annu

al re

port

which

inclu

des

the

dire

ctor

’s re

port

and

the

audi

t com

mitt

ee’s

repo

rt. T

he o

ther

info

rmat

ion

does

not

inclu

de th

e fin

ancia

l sta

tem

ents

, the

aud

itor’s

re

port

ther

eon

and

thos

e se

lect

ed p

rogr

amm

es p

rese

nted

in th

e an

nual

per

form

ance

repo

rt th

at h

ave

been

spe

cifica

lly re

porte

d on

in th

e au

dito

r’s re

port.

31. M

y op

inio

n on

the

finan

cial s

tate

men

ts a

nd fi

ndin

gs o

n th

e re

porte

d pe

rform

ance

info

rmat

ion

and

com

plia

nce

with

legi

slatio

n do

not

cov

er th

e ot

her i

nfor

mat

ion

and

I do

not e

xpre

ss a

n au

dit o

pini

on o

r an

y fo

rm o

f ass

uran

ce c

onclu

sion

ther

eon.

32. I

n co

nnec

tion

with

my

audi

t, m

y re

spon

sibilit

y is

to re

ad th

e ot

her i

nfor

mat

ion

and,

in d

oing

so,

con

sider

wh

ethe

r the

oth

er in

form

atio

n is

mat

eria

lly in

cons

isten

t with

the

finan

cial s

tate

men

ts a

nd th

e se

lect

ed

prog

ram

mes

pre

sent

ed in

the

annu

al p

erfo

rman

ce re

port,

or m

y kn

owle

dge

obta

ined

in th

e au

dit,

or

othe

rwise

app

ears

to b

e m

ater

ially

miss

tate

d. If

, bas

ed o

n th

e wo

rk I

have

per

form

ed o

n th

e ot

her

info

rmat

ion

obta

ined

prio

r to

the

date

of t

his

audi

tor’s

repo

rt, I

conc

lude

that

ther

e is

a m

ater

ial

miss

tate

men

t of t

his

othe

r inf

orm

atio

n, I

am re

quire

d to

repo

rt th

at fa

ct.


65

65

Repo

rt on

aud

it of

com

plia

nce

with

legi

slat

ion

Intro

duct

ion

and

scop

e

25. I

n ac

cord

ance

with

the

PAA

and

the

gene

ral n

otice

issu

ed in

term

s th

ereo

f, I h

ave

a re

spon

sibilit

y to

re

port

mat

eria

l fin

ding

s on

the

com

plia

nce

of th

e pu

blic

entit

y wi

th s

pecif

ic m

atte

rs in

key

legi

slatio

n. I

perfo

rmed

pro

cedu

res

to id

entif

y fin

ding

s bu

t not

to g

athe

r evid

ence

to e

xpre

ss a

ssur

ance

.

Annu

al fi

nanc

ial s

tate

men

ts, p

erfo

rman

ce a

nd a

nnua

l rep

orts

26. T

he fi

nanc

ial s

tate

men

ts s

ubm

itted

for a

uditin

g we

re n

ot p

repa

red

in a

ccor

danc

e wi

th th

e pr

escr

ibed

fin

ancia

l rep

ortin

g fra

mew

ork

as re

quire

d by

sec

tion

55(1

)(b) o

f the

PFM

A. M

ater

ial m

issta

tem

ents

of

liabi

lities

, rev

enue

, res

erve

s an

d di

sclo

sure

item

s id

entif

ied

by th

e au

dito

rs in

the

subm

itted

fina

ncia

l st

atem

ents

wer

e co

rrect

ed, r

esul

ting

in th

e fin

ancia

l sta

tem

ents

rece

iving

an

unqu

alifie

d au

dit o

pini

on.

Proc

urem

ent a

nd c

ontra

ct m

anag

emen

t

27. P

erso

ns in

the

serv

ice o

f the

pub

lic e

ntity

who

se c

lose

fam

ily m

embe

rs, p

artn

ers

or a

ssoc

iate

s ha

d a

priva

te o

r bus

ines

s in

tere

st in

con

tract

s aw

arde

d by

the

publ

ic en

tity

faile

d to

disc

lose

suc

h in

tere

st, a

s re

quire

d by

trea

sury

regu

latio

n 16

A8.4

.

Expe

nditu

re m

anag

emen

t

28. E

ffect

ive s

teps

wer

e no

t tak

en to

pre

vent

irre

gula

r as

well a

s fru

itless

and

was

tefu

l exp

endi

ture

as

requ

ired

by s

ectio

n 51

(1)(b

)(ii)

of th

e PF

MA.

Cons

eque

nces

man

agem

ent

29. E

ffect

ive a

nd a

ppro

pria

te d

iscip

linar

y st

eps

were

not

take

n ag

ains

t offi

cials

who

incu

rred

and

perm

itted

irr

egul

ar e

xpen

ditu

re, a

nd fr

uitle

ss a

nd w

aste

ful e

xpen

ditu

re, a

s re

quire

d by

sec

tion

51(1

)(e)(i

ii) o

f the

PF

MA.

Oth

er in

form

atio

n

30. T

he a

genc

y’s a

ccou

ntin

g au

thor

ity is

resp

onsib

le fo

r the

oth

er in

form

atio

n. T

he o

ther

info

rmat

ion

com

prise

s th

e in

form

atio

n in

clude

d in

the

annu

al re

port

which

inclu

des

the

dire

ctor

’s re

port

and

the

audi

t com

mitt

ee’s

repo

rt. T

he o

ther

info

rmat

ion

does

not

inclu

de th

e fin

ancia

l sta

tem

ents

, the

aud

itor’s

re

port

ther

eon

and

thos

e se

lect

ed p

rogr

amm

es p

rese

nted

in th

e an

nual

per

form

ance

repo

rt th

at h

ave

been

spe

cifica

lly re

porte

d on

in th

e au

dito

r’s re

port.

31. M

y op

inio

n on

the

finan

cial s

tate

men

ts a

nd fi

ndin

gs o

n th

e re

porte

d pe

rform

ance

info

rmat

ion

and

com

plia

nce

with

legi

slatio

n do

not

cov

er th

e ot

her i

nfor

mat

ion

and

I do

not e

xpre

ss a

n au

dit o

pini

on o

r an

y fo

rm o

f ass

uran

ce c

onclu

sion

ther

eon.

32. I

n co

nnec

tion

with

my

audi

t, m

y re

spon

sibilit

y is

to re

ad th

e ot

her i

nfor

mat

ion

and,

in d

oing

so,

con

sider

wh

ethe

r the

oth

er in

form

atio

n is

mat

eria

lly in

cons

isten

t with

the

finan

cial s

tate

men

ts a

nd th

e se

lect

ed

prog

ram

mes

pre

sent

ed in

the

annu

al p

erfo

rman

ce re

port,

or m

y kn

owle

dge

obta

ined

in th

e au

dit,

or

othe

rwise

app

ears

to b

e m

ater

ially

miss

tate

d. If

, bas

ed o

n th

e wo

rk I

have

per

form

ed o

n th

e ot

her

info

rmat

ion

obta

ined

prio

r to

the

date

of t

his

audi

tor’s

repo

rt, I

conc

lude

that

ther

e is

a m

ater

ial

miss

tate

men

t of t

his

othe

r inf

orm

atio

n, I

am re

quire

d to

repo

rt th

at fa

ct.


66

66

Inte

rnal

con

trol d

efic

ienc

ies

33. I

con

sider

ed in

tern

al c

ontro

l rel

evan

t to

my

audi

t of t

he fi

nanc

ial s

tate

men

ts, r

epor

ted

perfo

rman

ce

info

rmat

ion

and

com

plia

nce

with

app

licab

le le

gisla

tion;

how

ever

, my

obje

ctive

was

not

to e

xpre

ss a

ny

form

of a

ssur

ance

ther

eon.

The

mat

ters

repo

rted

belo

w ar

e lim

ited

to th

e sig

nific

ant i

nter

nal c

ontro

l de

ficie

ncie

s th

at re

sulte

d in

the

basis

for t

he fi

ndin

gs o

n th

e pe

rform

ance

repo

rt an

d th

e fin

ding

s on

co

mpl

ianc

e wi

th le

gisla

tion

inclu

ded

in th

is re

port.

Lead

ersh

ip

34. T

he a

ccou

ntin

g au

thor

ity d

id n

ot a

dequ

atel

y re

view

the

finan

cial s

tate

men

ts a

nd th

e an

nual

pe

rform

ance

repo

rt be

fore

sub

miss

ion

for a

udit

which

resu

lted

in a

num

ber o

f mat

eria

l miss

tate

men

ts

that

wer

e id

entif

ied.

Fina

ncia

l and

per

form

ance

man

agem

ent

35. M

anag

emen

t did

not

alw

ays

perfo

rm th

e da

ily re

conc

iliatio

ns a

nd re

views

requ

ired

to e

nsur

e th

e pr

even

tion

and

dete

ctio

n of

fina

ncia

l and

per

form

ance

erro

rs a

nd n

on-c

ompl

ianc

e wi

th re

leva

nt

legi

slatio

ns.

G

over

nanc

e

36. R

isk m

anag

emen

t stra

tegy

and

ove

rsig

ht b

odie

s we

re in

pla

ce h

owev

er, i

t was

not

suf

ficie

nt to

pre

vent

an

d de

tect

the

non-

com

plia

nce

and

erro

rs in

the

finan

cial in

form

atio

n.

Polo

kwan

e

31 J

uly

2017

67

Anne

xure

– A

udito

r-gen

eral

’s re

spon

sibi

lity

for t

he a

udit

1.

As p

art o

f an

audi

t in

acco

rdan

ce w

ith th

e IS

As, I

exe

rcis

e pr

ofes

siona

l jud

gem

ent a

nd m

aint

ain

prof

essio

nal s

cept

icism

thro

ugho

ut m

y au

dit o

f the

fina

ncia

l sta

tem

ents

, and

the

proc

edur

es p

erfo

rmed

on

repo

rted

perfo

rman

ce in

form

atio

n fo

r sel

ecte

d pr

ogra

mm

es a

nd o

n th

e pu

blic

entit

y’s c

ompl

ianc

e wi

th re

spec

t to

the

sele

cted

sub

ject

mat

ters

.

Fina

ncia

l sta

tem

ents

2.

In a

dditio

n to

my

resp

onsib

ility

for t

he a

udit

of fi

nanc

ial s

tate

men

ts a

s de

scrib

ed in

the

audi

tor’s

repo

rt, I

also

:

Id

entif

ied

and

asse

ssed

the

risks

of m

ater

ial m

issta

tem

ent o

f the

fina

ncia

l sta

tem

ents

whe

ther

due

to

frau

d or

erro

r, de

sign

and

perfo

rm a

udit

proc

edur

es re

spon

sive

to th

ose

risks

, and

obt

ain

audi

t ev

iden

ce th

at is

suf

ficie

nt a

nd a

ppro

pria

te to

pro

vide

a ba

sis fo

r my

opin

ion.

The

risk

of n

ot

dete

ctin

g a

mat

eria

l miss

tate

men

t res

ultin

g fro

m fr

aud

is h

ighe

r tha

n fo

r one

resu

lting

from

erro

r, as

frau

d m

ay in

volve

col

lusio

n, fo

rger

y, in

tent

iona

l om

issio

ns, m

isrep

rese

ntat

ions

, or t

he o

verri

de

of in

tern

al c

ontro

l.

O

btai

ned

an u

nder

stan

ding

of i

nter

nal c

ontro

l rel

evan

t to

the

audi

t in

orde

r to

desig

n au

dit

proc

edur

es th

at a

re a

ppro

pria

te in

the

circu

mst

ance

s, b

ut n

ot fo

r the

pur

pose

of e

xpre

ssin

g an

op

inio

n on

the

effe

ctive

ness

of t

he a

genc

y’s in

tern

al c

ontro

l.

Ev

alua

ted

the

appr

opria

tene

ss o

f acc

ount

ing

polic

ies

used

and

the

reas

onab

lene

ss o

f acc

ount

ing

estim

ates

and

rela

ted

disc

losu

res

mad

e by

the

acco

untin

g of

ficer

.

Co

nclu

ded

on th

e ap

prop

riate

ness

of t

he a

ccou

ntin

g au

thor

ity’s

use

of t

he g

oing

con

cern

bas

is of

ac

coun

ting

in th

e pr

epar

atio

n of

the

finan

cial s

tate

men

ts. I

also

con

clude

d, b

ased

on

the

audi

t ev

iden

ce o

btai

ned,

whe

ther

a m

ater

ial u

ncer

tain

ty e

xists

rela

ted

to e

vent

s or

con

ditio

ns th

at m

ay

cast

sig

nific

ant d

oubt

on

the

Lim

popo

Tou

rism

Age

ncy’s

abi

lity

to c

ontin

ue a

s a

goin

g co

ncer

n. If

I co

nclu

de th

at a

mat

eria

l unc

erta

inty

exis

ts, I

am

requ

ired

to d

raw

atte

ntio

n in

my

audi

tor’s

repo

rt to

th

e re

late

d di

sclo

sure

s in

the

finan

cial s

tate

men

ts a

bout

the

mat

eria

l unc

erta

inty

or,

if su

ch

disc

losu

res

are

inad

equa

te, t

o m

odify

the

opin

ion

on th

e fin

ancia

l sta

tem

ents

. My

conc

lusio

ns a

re

base

d on

the

info

rmat

ion

avai

labl

e to

me

at th

e da

te o

f the

aud

itor’s

repo

rt. H

owev

er, f

utur

e ev

ents

or

con

ditio

ns m

ay c

ause

the

publ

ic en

tity

to c

ease

to c

ontin

ue a

s a

goin

g co

ncer

n.

Ev

alua

ted

the

over

all p

rese

ntat

ion,

stru

ctur

e an

d co

nten

t of t

he fi

nanc

ial s

tate

men

ts, i

nclu

ding

the

disc

losu

res,

and

whe

ther

the

finan

cial s

tate

men

ts re

pres

ent t

he u

nder

lying

tran

sact

ions

and

ev

ents

in a

man

ner t

hat a

chie

ves

fair

pres

enta

tion.

Com

mun

icat

ion

with

thos

e ch

arge

d w

ith g

over

nanc

e

3.

I com

mun

icate

d wi

th th

e ac

coun

ting

auth

ority

rega

rdin

g, a

mon

g ot

her m

atte

rs, t

he p

lann

ed s

cope

and

tim

ing

of th

e au

dit a

nd s

igni

fican

t aud

it fin

ding

s, in

cludi

ng a

ny s

igni

fican

t def

icien

cies

in in

tern

al c

ontro

l th

at I

iden

tify

durin

g m

y au

dit.

4.

I also

con

firm

ed to

the

acco

untin

g au

thor

ity th

at I

have

com

plie

d wi

th re

leva

nt e

thic

al re

quire

men

ts

rega

rdin

g in

depe

nden

ce, a

nd c

omm

unica

te a

ll rel

atio

nshi

ps a

nd o

ther

mat

ters

that

may

reas

onab

ly be

th

ough

t to

have

a b

earin

g on

my

inde

pend

ence

and

her

e ap

plica

ble,

rela

ted

safe

guar

ds.


67

67

Anne

xure

– A

udito

r-gen

eral

’s re

spon

sibi

lity

for t

he a

udit

1.

As p

art o

f an

audi

t in

acco

rdan

ce w

ith th

e IS

As, I

exe

rcis

e pr

ofes

siona

l jud

gem

ent a

nd m

aint

ain

prof

essio

nal s

cept

icism

thro

ugho

ut m

y au

dit o

f the

fina

ncia

l sta

tem

ents

, and

the

proc

edur

es p

erfo

rmed

on

repo

rted

perfo

rman

ce in

form

atio

n fo

r sel

ecte

d pr

ogra

mm

es a

nd o

n th

e pu

blic

entit

y’s c

ompl

ianc

e wi

th re

spec

t to

the

sele

cted

sub

ject

mat

ters

.

Fina

ncia

l sta

tem

ents

2.

In a

dditio

n to

my

resp

onsib

ility

for t

he a

udit

of fi

nanc

ial s

tate

men

ts a

s de

scrib

ed in

the

audi

tor’s

repo

rt, I

also

:

Id

entif

ied

and

asse

ssed

the

risks

of m

ater

ial m

issta

tem

ent o

f the

fina

ncia

l sta

tem

ents

whe

ther

due

to

frau

d or

erro

r, de

sign

and

perfo

rm a

udit

proc

edur

es re

spon

sive

to th

ose

risks

, and

obt

ain

audi

t ev

iden

ce th

at is

suf

ficie

nt a

nd a

ppro

pria

te to

pro

vide

a ba

sis fo

r my

opin

ion.

The

risk

of n

ot

dete

ctin

g a

mat

eria

l miss

tate

men

t res

ultin

g fro

m fr

aud

is h

ighe

r tha

n fo

r one

resu

lting

from

erro

r, as

frau

d m

ay in

volve

col

lusio

n, fo

rger

y, in

tent

iona

l om

issio

ns, m

isrep

rese

ntat

ions

, or t

he o

verri

de

of in

tern

al c

ontro

l.

O

btai

ned

an u

nder

stan

ding

of i

nter

nal c

ontro

l rel

evan

t to

the

audi

t in

orde

r to

desig

n au

dit

proc

edur

es th

at a

re a

ppro

pria

te in

the

circu

mst

ance

s, b

ut n

ot fo

r the

pur

pose

of e

xpre

ssin

g an

op

inio

n on

the

effe

ctive

ness

of t

he a

genc

y’s in

tern

al c

ontro

l.

Ev

alua

ted

the

appr

opria

tene

ss o

f acc

ount

ing

polic

ies

used

and

the

reas

onab

lene

ss o

f acc

ount

ing

estim

ates

and

rela

ted

disc

losu

res

mad

e by

the

acco

untin

g of

ficer

.

Co

nclu

ded

on th

e ap

prop

riate

ness

of t

he a

ccou

ntin

g au

thor

ity’s

use

of t

he g

oing

con

cern

bas

is of

ac

coun

ting

in th

e pr

epar

atio

n of

the

finan

cial s

tate

men

ts. I

also

con

clude

d, b

ased

on

the

audi

t ev

iden

ce o

btai

ned,

whe

ther

a m

ater

ial u

ncer

tain

ty e

xists

rela

ted

to e

vent

s or

con

ditio

ns th

at m

ay

cast

sig

nific

ant d

oubt

on

the

Lim

popo

Tou

rism

Age

ncy’s

abi

lity

to c

ontin

ue a

s a

goin

g co

ncer

n. If

I co

nclu

de th

at a

mat

eria

l unc

erta

inty

exis

ts, I

am

requ

ired

to d

raw

atte

ntio

n in

my

audi

tor’s

repo

rt to

th

e re

late

d di

sclo

sure

s in

the

finan

cial s

tate

men

ts a

bout

the

mat

eria

l unc

erta

inty

or,

if su

ch

disc

losu

res

are

inad

equa

te, t

o m

odify

the

opin

ion

on th

e fin

ancia

l sta

tem

ents

. My

conc

lusio

ns a

re

base

d on

the

info

rmat

ion

avai

labl

e to

me

at th

e da

te o

f the

aud

itor’s

repo

rt. H

owev

er, f

utur

e ev

ents

or

con

ditio

ns m

ay c

ause

the

publ

ic en

tity

to c

ease

to c

ontin

ue a

s a

goin

g co

ncer

n.

Ev

alua

ted

the

over

all p

rese

ntat

ion,

stru

ctur

e an

d co

nten

t of t

he fi

nanc

ial s

tate

men

ts, i

nclu

ding

the

disc

losu

res,

and

whe

ther

the

finan

cial s

tate

men

ts re

pres

ent t

he u

nder

lying

tran

sact

ions

and

ev

ents

in a

man

ner t

hat a

chie

ves

fair

pres

enta

tion.

Com

mun

icat

ion

with

thos

e ch

arge

d w

ith g

over

nanc

e

3.

I com

mun

icate

d wi

th th

e ac

coun

ting

auth

ority

rega

rdin

g, a

mon

g ot

her m

atte

rs, t

he p

lann

ed s

cope

and

tim

ing

of th

e au

dit a

nd s

igni

fican

t aud

it fin

ding

s, in

cludi

ng a

ny s

igni

fican

t def

icien

cies

in in

tern

al c

ontro

l th

at I

iden

tify

durin

g m

y au

dit.

4.

I also

con

firm

ed to

the

acco

untin

g au

thor

ity th

at I

have

com

plie

d wi

th re

leva

nt e

thic

al re

quire

men

ts

rega

rdin

g in

depe

nden

ce, a

nd c

omm

unica

te a

ll rel

atio

nshi

ps a

nd o

ther

mat

ters

that

may

reas

onab

ly be

th

ough

t to

have

a b

earin

g on

my

inde

pend

ence

and

her

e ap

plica

ble,

rela

ted

safe

guar

ds.


68

Lim

popo

Tou

rism

Age

ncy

Ann

ual F

inan

cial

Sta

tem

ents

for

the

year

end

ed 3

1 M

arch

201

7

Lim

po

po

To

uri

sm A

gen

cyA

nnua

l Fin

anci

al S

tate

men

ts fo

r th

e ye

ar e

nded

31

Mar

ch 2

017

Gen

eral

Info

rmat

ion

Co

un

try

of

inco

rpo

rati

on

an

d d

om

icile

Sou

th A

fric

a

Leg

al f

orm

of

enti

tyLi

mpo

po T

ouris

m A

genc

y

Nat

ure

of

bu

sin

ess

and

pri

nci

pal

act

ivit

ies

Tou

rism

and

mar

ketin

g

Mem

ber

sK

A D

ipel

a (C

hairp

erso

n)

MM

Chi

kane

(D

eput

y C

hairp

erso

n)

OM

Pha

sha

PP

Mot

ene

TE

Mab

unda

A D

e K

lerk

(D

r)

MG

Mok

oka

KP

S N

tsha

vhen

i

TG

Net

heng

we

(Dr)

SS

S S

ekor

oro

(Kgo

shi)

J M

aeko

(C

llr)

Reg

iste

red

off

ice

Sou

ther

n G

atew

ay E

xt 4

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Mai

n R

oad

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ane

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stal

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ane

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Ban

kers

AB

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Ban

k Li

mite

d

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dit

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Aud

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Gen

eral

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red

Aud

itors

Co

mp

any

Sec

reta

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di

Pre

par

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he a

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69

Lim

popo

Tou

rism

Age

ncy

Ann

ual F

inan

cial

Sta

tem

ents

for

the

year

end

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arch

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po

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sm A

gen

cyA

nnua

l Fin

anci

al S

tate

men

ts fo

r th

e ye

ar e

nded

31

Mar

ch 2

017

Gen

eral

Info

rmat

ion

Co

un

try

of

inco

rpo

rati

on

an

d d

om

icile

Sou

th A

fric

a

Leg

al f

orm

of

enti

tyLi

mpo

po T

ouris

m A

genc

y

Nat

ure

of

bu

sin

ess

and

pri

nci

pal

act

ivit

ies

Tou

rism

and

mar

ketin

g

Mem

ber

sK

A D

ipel

a (C

hairp

erso

n)

MM

Chi

kane

(D

eput

y C

hairp

erso

n)

OM

Pha

sha

PP

Mot

ene

TE

Mab

unda

A D

e K

lerk

(D

r)

MG

Mok

oka

KP

S N

tsha

vhen

i

TG

Net

heng

we

(Dr)

SS

S S

ekor

oro

(Kgo

shi)

J M

aeko

(C

llr)

Reg

iste

red

off

ice

Sou

ther

n G

atew

ay E

xt 4

N1

Mai

n R

oad

Pol

okw

ane

0699

Po

stal

ad

dre

ssP

O B

ox 2

814

Pol

okw

ane

0700

Ban

kers

AB

SA

Ban

k Li

mite

d

Au

dit

ors

Aud

itor

Gen

eral

of S

outh

Afr

ica

Reg

iste

red

Aud

itors

Co

mp

any

Sec

reta

ryT

G K

otse

di

Pre

par

erT

he a

nnua

l fin

anci

al s

tate

men

ts w

ere

inte

rnal

ly c

ompi

led

by: M

aila

MP

(Sen

ior

Fin

ance

Man

ager

)

1


70

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Ind

ex

Th

e r

ep

ort

s a

nd

sta

tem

en

ts s

et

ou

t b

elo

w c

om

pri

se t

he

an

nu

al f

ina

nci

al s

tate

me

nts

pre

sen

ted

to

th

e P

rovi

nci

al L

eg

isla

ture

:

Ind

ex

Pa

ge

Bo

ard

's R

esp

on

sib

ilitie

s a

nd

Ap

pro

val

71

Bo

ard

's R

ep

ort

72 -

74

Sta

tem

en

t o

f F

ina

nci

al P

osi

tion

75

Sta

tem

en

t o

f F

ina

nci

al P

erf

orm

an

ce76

Sta

tem

en

t o

f C

ha

ng

es

in N

et

Ass

ets

77

Ca

sh F

low

Sta

tem

en

t78

Sta

tem

en

t o

f C

om

pa

riso

n o

f B

ud

ge

t a

nd

Act

ua

l Am

ou

nts

79 -

80

Acc

ou

ntin

g P

olic

ies

81 -

94

No

tes

to t

he

An

nu

al F

ina

nci

al S

tate

me

nts

95 -

114

2


71

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Bo

ard

's R

esp

on

sib

ilit

ies a

nd

Ap

pro

val

The b

oa

rdis

re

qu

ire

d b

y th

e P

ub

lic F

ina

nce

Ma

na

ge

me

nt

Act

(A

ct 1

of

19

99

), t

o m

ain

tain

ad

eq

ua

te a

cco

un

ting

re

cord

s a

nd

are

resp

on

sib

le f

or

the

co

nte

nt

an

d in

teg

rity

of

the

an

nu

al f

ina

nci

al s

tate

me

nts

an

d r

ela

ted

fin

an

cia

l in

form

atio

n in

clu

de

d in

th

isre

po

rt.

It is

th

e r

esp

on

sib

ility

of

the

bo

ard

to

en

sure

th

at

the

an

nu

al f

ina

nci

al s

tate

me

nts

fa

irly

pre

sen

t th

e s

tate

of

aff

air

s o

f th

ee

ntit

y a

s a

t th

e e

nd

of

the

fin

an

cia

l ye

ar

20

16

/17

an

d t

he

re

sults

of

its o

pe

ratio

ns

an

d c

ash

flo

ws

for

the

sa

id p

eri

od

. T

he

ext

ern

al a

ud

itors

are

en

ga

ge

d t

o e

xpre

ss a

n in

de

pe

nd

en

t o

pin

ion

on

th

e a

nn

ua

l fin

an

cia

l sta

tem

en

ts a

nd

we

re g

ive

nu

nre

stri

cte

d a

cce

ss t

o a

ll fin

an

cia

l re

cord

s a

nd

re

late

d d

ata

.

The a

nn

ua

l fin

an

cia

l sta

tem

en

ts h

ave

be

en

pre

pa

red

in a

cco

rda

nce

with

Sta

nd

ard

s o

f G

en

era

lly R

eco

gn

ise

d A

cco

un

ting

Pra

ctic

e (

GR

AP

), t

he

Pu

blic

Fin

an

cia

l Ma

na

ge

me

nt

Act

an

d t

he

Tre

asu

ry R

eg

ula

tion

incl

ud

ing

an

y in

terp

reta

tion

s, g

uid

elin

es

an

d d

ire

ctiv

es

issu

ed

by

the

Acc

ou

ntin

g S

tan

da

rds

Bo

ard

.

The a

nn

ua

l fin

an

cia

l sta

tem

en

ts a

re b

ase

d u

po

n a

pp

rop

ria

te a

cco

un

ting

po

licie

s co

nsi

ste

ntly

ap

plie

d a

nd

su

pp

ort

ed

by

rea

son

ab

le a

nd

pru

de

nt

jud

ge

me

nts

an

d e

stim

ate

s.

The b

oa

rda

ckn

ow

led

ge

s th

at

itis

ulti

ma

tely

re

spo

nsi

ble

fo

r th

e s

yste

m o

f in

tern

al f

ina

nci

al c

on

tro

l est

ab

lish

ed

by

the

en

tity

an

dp

lace

co

nsi

de

rab

le im

po

rta

nce

on

ma

inta

inin

g a

str

on

g c

on

tro

l en

viro

nm

en

t. T

o e

na

ble

th

e b

oa

rd t

o m

ee

t th

ese

resp

on

sib

ilitie

s, t

he

bo

ard

se

ts s

tan

da

rds

for

inte

rna

l co

ntr

ol a

ime

d a

t re

du

cin

g t

he

ris

k o

f e

rro

r o

r d

efic

it in

a c

ost

eff

ect

ive

ma

nn

er.

Th

e s

tan

da

rds

incl

ud

e t

he

pro

pe

r d

ele

ga

tion

of

resp

on

sib

ilitie

s w

ithin

a c

lea

rly

de

fine

d f

ram

ew

ork

, e

ffe

ctiv

e a

cco

un

ting

pro

ced

ure

s a

nd

ad

eq

ua

te s

eg

reg

atio

n o

f d

utie

s to

en

sure

an

acc

ep

tab

le le

vel o

f ri

sk.

Th

ese

co

ntr

ols

are

mo

nito

red

th

rou

gh

ou

tth

e e

ntit

y a

nd

all

em

plo

yee

s a

re r

eq

uir

ed

to

ma

inta

in t

he

hig

he

st e

thic

al s

tan

da

rds

in e

nsu

rin

g t

he

en

tity’

s b

usi

ne

ss is

con

du

cte

d in

a m

an

ne

r th

at

in a

ll re

aso

na

ble

cir

cum

sta

nce

s is

ab

ove

re

pro

ach

. T

he

fo

cus

of

risk

ma

na

ge

me

nt

in t

he

en

tity

iso

n id

en

tifyi

ng

, a

sse

ssin

g,

ma

na

gin

g a

nd

mo

nito

rin

g a

ll kn

ow

n f

orm

s o

f ri

sk a

cro

ss t

he

en

tity.

Wh

ile o

pe

ratin

g r

isk

can

no

t b

efu

lly e

limin

ate

d,

the

en

tity

en

de

avo

urs

to

min

imis

e it

by

en

suri

ng

th

at

ap

pro

pri

ate

infr

ast

ruct

ure

, co

ntr

ols

, sy

ste

ms

an

d e

thic

al

be

ha

vio

ur

are

ap

plie

d a

nd

ma

na

ge

d w

ithin

pre

de

term

ine

d p

roce

du

res

an

d c

on

stra

ints

.

The b

oa

rdis

of

the

op

inio

n,

ba

sed

on

th

e in

form

atio

n a

nd

exp

lan

atio

ns

giv

en

by

ma

na

ge

me

nt,

th

at

the

sys

tem

of

inte

rna

lco

ntr

ol p

rovi

de

s re

aso

na

ble

ass

ura

nce

th

at

the

fin

an

cia

l re

cord

s m

ay

be

re

lied

on

fo

r th

e p

rep

ara

tion

of

the

an

nu

al f

ina

nci

al

sta

tem

en

ts.

Ho

we

ver,

an

y sy

ste

m o

f in

tern

al f

ina

nci

al c

on

tro

l ca

n p

rovi

de

on

ly r

ea

son

ab

le,

an

d n

ot

ab

solu

te,

ass

ura

nce

ag

ain

st m

ate

ria

l mis

sta

tem

en

t o

r d

efic

it.

The b

oa

rdh

as

revi

ew

ed

th

e e

ntit

y’s

cash

flo

w f

ore

cast

fo

r th

e y

ea

r to

31

Ma

rch

20

18

an

d,

in t

he

lig

ht

of

this

re

vie

w a

nd

th

ecu

rre

nt

fina

nci

al p

osi

tion

, th

ey

are

sa

tisfie

d t

ha

t th

e e

ntit

y h

as

or

ha

s a

cce

ss t

o a

de

qu

ate

re

sou

rce

s to

co

ntin

ue

in o

pe

ratio

na

le

xist

en

ce f

or

the

fo

rese

ea

ble

fu

ture

.

The e

ntit

y is

wh

olly

de

pe

nd

en

t o

n t

he

Lim

po

po

De

pa

rtm

en

t o

f E

con

om

ic D

eve

lop

me

nt

En

viro

nm

en

t a

nd

To

uri

sm (

LE

DE

T)

for

con

tinu

ed

fu

nd

ing

of

op

era

tion

s. T

he

an

nu

al f

ina

nci

al s

tate

me

nts

are

pre

pa

red

on

th

e b

asi

s th

at

the

en

tity

is a

go

ing

co

nce

rna

nd

th

at

Th

e L

imp

op

o D

ep

art

me

nt

of

Eco

no

mic

De

velo

pm

en

t a

nd

To

uri

sm (

LE

DE

T)

ha

s n

eith

er

the

inte

ntio

n n

or

the

ne

ed

to

liqu

ida

te o

r cu

rta

il m

ate

ria

lly t

he

sca

le o

f th

e e

ntit

y. T

he

bo

ard

is in

re

ceip

t o

f a

co

nfir

ma

tion

lett

er

to t

his

eff

ect

.

The b

oa

rd is

re

spo

nsi

ble

fo

r th

e f

ina

nci

al a

ffa

irs

of

the

en

tity.

Th

e e

xte

rna

l au

dito

rsa

re r

esp

on

sib

le f

or

ind

ep

en

de

ntly

re

vie

win

g a

nd

re

po

rtin

g o

n t

he

en

tity'

s a

nn

ua

l fin

an

cia

l sta

tem

en

ts. T

he

an

nu

al f

ina

nci

al s

tate

me

nts

ha

ve b

ee

n e

xam

ine

d b

y th

e e

ntit

y's

ext

ern

al a

ud

itors

an

d t

he

ir r

ep

ort

is p

rese

nte

d o

n p

ag

e 6

2 to

67.

.

The a

nn

ua

l fin

an

cia

l sta

tem

en

ts s

et

ou

t o

n p

ag

es

68 t

o 1

14,

wh

ich

ha

ve b

ee

n p

rep

are

d o

n t

he

go

ing

co

nce

rn b

asi

s, w

ere

ap

pro

ved

by

the

bo

ard

on

31

Ma

y 2

01

7 a

nd

we

re s

ign

ed

on

its

be

ha

lf b

y:

KA

Dip

ela

(C

ha

irp

ers

on

)

31

Ma

y 2

01

7

3

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Bo

ard

's R

esp

on

sib

ilit

ies a

nd

Ap

pro

val

The b

oa

rdis

re

qu

ire

d b

y th

e P

ub

lic F

ina

nce

Ma

na

ge

me

nt

Act

(A

ct 1

of

19

99

), t

o m

ain

tain

ad

eq

ua

te a

cco

un

ting

re

cord

s a

nd

are

resp

on

sib

le f

or

the

co

nte

nt

an

d in

teg

rity

of

the

an

nu

al f

ina

nci

al s

tate

me

nts

an

d r

ela

ted

fin

an

cia

l in

form

atio

n in

clu

de

d in

th

isre

po

rt.

It is

th

e r

esp

on

sib

ility

of

the

bo

ard

to

en

sure

th

at

the

an

nu

al f

ina

nci

al s

tate

me

nts

fa

irly

pre

sen

t th

e s

tate

of

aff

air

s o

f th

ee

ntit

y a

s a

t th

e e

nd

of

the

fin

an

cia

l ye

ar

20

16

/17

an

d t

he

re

sults

of

its o

pe

ratio

ns

an

d c

ash

flo

ws

for

the

sa

id p

eri

od

. T

he

ext

ern

al a

ud

itors

are

en

ga

ge

d t

o e

xpre

ss a

n in

de

pe

nd

en

t o

pin

ion

on

th

e a

nn

ua

l fin

an

cia

l sta

tem

en

ts a

nd

we

re g

ive

nu

nre

stri

cte

d a

cce

ss t

o a

ll fin

an

cia

l re

cord

s a

nd

re

late

d d

ata

.

The a

nn

ua

l fin

an

cia

l sta

tem

en

ts h

ave

be

en

pre

pa

red

in a

cco

rda

nce

with

Sta

nd

ard

s o

f G

en

era

lly R

eco

gn

ise

d A

cco

un

ting

Pra

ctic

e (

GR

AP

), t

he

Pu

blic

Fin

an

cia

l Ma

na

ge

me

nt

Act

an

d t

he

Tre

asu

ry R

eg

ula

tion

incl

ud

ing

an

y in

terp

reta

tion

s, g

uid

elin

es

an

d d

ire

ctiv

es

issu

ed

by

the

Acc

ou

ntin

g S

tan

da

rds

Bo

ard

.

The a

nn

ua

l fin

an

cia

l sta

tem

en

ts a

re b

ase

d u

po

n a

pp

rop

ria

te a

cco

un

ting

po

licie

s co

nsi

ste

ntly

ap

plie

d a

nd

su

pp

ort

ed

by

rea

son

ab

le a

nd

pru

de

nt

jud

ge

me

nts

an

d e

stim

ate

s.

The b

oa

rda

ckn

ow

led

ge

s th

at

itis

ulti

ma

tely

re

spo

nsi

ble

fo

r th

e s

yste

m o

f in

tern

al f

ina

nci

al c

on

tro

l est

ab

lish

ed

by

the

en

tity

an

dp

lace

co

nsi

de

rab

le im

po

rta

nce

on

ma

inta

inin

g a

str

on

g c

on

tro

l en

viro

nm

en

t. T

o e

na

ble

th

e b

oa

rd t

o m

ee

t th

ese

resp

on

sib

ilitie

s, t

he

bo

ard

se

ts s

tan

da

rds

for

inte

rna

l co

ntr

ol a

ime

d a

t re

du

cin

g t

he

ris

k o

f e

rro

r o

r d

efic

it in

a c

ost

eff

ect

ive

ma

nn

er.

Th

e s

tan

da

rds

incl

ud

e t

he

pro

pe

r d

ele

ga

tion

of

resp

on

sib

ilitie

s w

ithin

a c

lea

rly

de

fine

d f

ram

ew

ork

, e

ffe

ctiv

e a

cco

un

ting

pro

ced

ure

s a

nd

ad

eq

ua

te s

eg

reg

atio

n o

f d

utie

s to

en

sure

an

acc

ep

tab

le le

vel o

f ri

sk.

Th

ese

co

ntr

ols

are

mo

nito

red

th

rou

gh

ou

tth

e e

ntit

y a

nd

all

em

plo

yee

s a

re r

eq

uir

ed

to

ma

inta

in t

he

hig

he

st e

thic

al s

tan

da

rds

in e

nsu

rin

g t

he

en

tity’

s b

usi

ne

ss is

con

du

cte

d in

a m

an

ne

r th

at

in a

ll re

aso

na

ble

cir

cum

sta

nce

s is

ab

ove

re

pro

ach

. T

he

fo

cus

of

risk

ma

na

ge

me

nt

in t

he

en

tity

iso

n id

en

tifyi

ng

, a

sse

ssin

g,

ma

na

gin

g a

nd

mo

nito

rin

g a

ll kn

ow

n f

orm

s o

f ri

sk a

cro

ss t

he

en

tity.

Wh

ile o

pe

ratin

g r

isk

can

no

t b

efu

lly e

limin

ate

d,

the

en

tity

en

de

avo

urs

to

min

imis

e it

by

en

suri

ng

th

at

ap

pro

pri

ate

infr

ast

ruct

ure

, co

ntr

ols

, sy

ste

ms

an

d e

thic

al

be

ha

vio

ur

are

ap

plie

d a

nd

ma

na

ge

d w

ithin

pre

de

term

ine

d p

roce

du

res

an

d c

on

stra

ints

.

The b

oa

rdis

of

the

op

inio

n,

ba

sed

on

th

e in

form

atio

n a

nd

exp

lan

atio

ns

giv

en

by

ma

na

ge

me

nt,

th

at

the

sys

tem

of

inte

rna

lco

ntr

ol p

rovi

de

s re

aso

na

ble

ass

ura

nce

th

at

the

fin

an

cia

l re

cord

s m

ay

be

re

lied

on

fo

r th

e p

rep

ara

tion

of

the

an

nu

al f

ina

nci

al

sta

tem

en

ts.

Ho

we

ver,

an

y sy

ste

m o

f in

tern

al f

ina

nci

al c

on

tro

l ca

n p

rovi

de

on

ly r

ea

son

ab

le,

an

d n

ot

ab

solu

te,

ass

ura

nce

ag

ain

st m

ate

ria

l mis

sta

tem

en

t o

r d

efic

it.

The b

oa

rdh

as

revi

ew

ed

th

e e

ntit

y’s

cash

flo

w f

ore

cast

fo

r th

e y

ea

r to

31

Ma

rch

20

18

an

d,

in t

he

lig

ht

of

this

re

vie

w a

nd

th

ecu

rre

nt

fina

nci

al p

osi

tion

, th

ey

are

sa

tisfie

d t

ha

t th

e e

ntit

y h

as

or

ha

s a

cce

ss t

o a

de

qu

ate

re

sou

rce

s to

co

ntin

ue

in o

pe

ratio

na

le

xist

en

ce f

or

the

fo

rese

ea

ble

fu

ture

.

The e

ntit

y is

wh

olly

de

pe

nd

en

t o

n t

he

Lim

po

po

De

pa

rtm

en

t o

f E

con

om

ic D

eve

lop

me

nt

En

viro

nm

en

t a

nd

To

uri

sm (

LE

DE

T)

for

con

tinu

ed

fu

nd

ing

of

op

era

tion

s. T

he

an

nu

al f

ina

nci

al s

tate

me

nts

are

pre

pa

red

on

th

e b

asi

s th

at

the

en

tity

is a

go

ing

co

nce

rna

nd

th

at

Th

e L

imp

op

o D

ep

art

me

nt

of

Eco

no

mic

De

velo

pm

en

t a

nd

To

uri

sm (

LE

DE

T)

ha

s n

eith

er

the

inte

ntio

n n

or

the

ne

ed

to

liqu

ida

te o

r cu

rta

il m

ate

ria

lly t

he

sca

le o

f th

e e

ntit

y. T

he

bo

ard

is in

re

ceip

t o

f a

co

nfir

ma

tion

lett

er

to t

his

eff

ect

.

The b

oa

rd is

re

spo

nsi

ble

fo

r th

e f

ina

nci

al a

ffa

irs

of

the

en

tity.

Th

e e

xte

rna

l au

dito

rsa

re r

esp

on

sib

le f

or

ind

ep

en

de

ntly

re

vie

win

g a

nd

re

po

rtin

g o

n t

he

en

tity'

s a

nn

ua

l fin

an

cia

l sta

tem

en

ts. T

he

an

nu

al f

ina

nci

al s

tate

me

nts

ha

ve b

ee

n e

xam

ine

d b

y th

e e

ntit

y's

ext

ern

al a

ud

itors

an

d t

he

ir r

ep

ort

is p

rese

nte

d o

n p

ag

e 6

2 to

67.

.

The a

nn

ua

l fin

an

cia

l sta

tem

en

ts s

et

ou

t o

n p

ag

es

68 t

o 1

14,

wh

ich

ha

ve b

ee

n p

rep

are

d o

n t

he

go

ing

co

nce

rn b

asi

s, w

ere

ap

pro

ved

by

the

bo

ard

on

31

Ma

y 2

01

7 a

nd

we

re s

ign

ed

on

its

be

ha

lf b

y:

KA

Dip

ela

(C

ha

irp

ers

on

)

31

Ma

y 2

01

7

3


72

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Bo

ard

's R

ep

ort

The b

oa

rdsu

bm

itsth

eir

re

po

rt f

or

the

ye

ar

en

de

d 3

1 M

arc

h 2

01

7.

1.

Re

vie

w o

f a

cti

vit

ies

Ma

in b

us

ine

ss

an

d o

pe

rati

on

s

The e

ntit

y is

en

ga

ge

d in

th

e p

rom

otio

n a

nd

de

velo

pm

en

t o

f t

ou

rism

in t

he

Lim

po

po

Pro

vin

ce.

Th

e o

pe

ratin

g r

esu

lts a

nd

sta

te o

f a

ffa

irs

of

the

en

tity

are

fu

lly s

et

ou

t in

th

e a

tta

che

d a

nn

ua

l fin

an

cia

l sta

tem

en

ts a

nd

do

no

t in

ou

r o

pin

ion

re

qu

ire

an

yfu

rth

er

com

me

nt.

2.

Go

ing

co

nc

ern

Th

e L

imp

op

o D

ep

art

me

nt

of

Eco

no

mic

De

velo

pm

em

en

t, E

nvi

ron

me

nt

an

d T

ou

rism

(L

ED

ET

) h

as

con

firm

ed

th

e f

un

din

g f

or

Lim

po

po

To

uri

sm A

ge

ncy

(L

TA

) fo

r th

e f

ors

ee

ab

le f

utu

re a

nd

a le

tte

r o

f th

is e

ffe

ct h

as

be

en

re

ceiv

ed

.

3.

Su

bs

eq

ue

nt

ev

en

ts

Su

bse

qu

en

t to

th

e y

ea

r e

nd

, th

e P

rovi

nci

al E

xecu

tive

Co

un

cil (

EX

CO

) to

ok

a d

eci

sio

n t

ha

t L

WR

an

d s

up

po

rt s

taff

will

be

tra

nsf

err

ed

to

th

e L

imp

op

o D

ep

art

me

nt

of

Eco

no

mic

De

velo

pm

en

t E

nvi

ron

me

nt

an

d T

ou

rism

(L

ED

ET

) d

uri

ng

th

e c

urr

en

tfin

an

cia

l ye

ar.

4.

Ac

co

un

tin

g p

oli

cie

s

The a

nn

ua

l fin

an

cia

l sta

tem

en

ts h

ave

be

en

pre

pa

red

in a

cco

rda

nce

with

th

e S

ou

th A

fric

an

Sta

tem

en

ts o

f G

en

era

llyR

eco

gn

ise

d A

cco

un

ting

Pra

ctic

e (

GR

AP

),

issu

ed

by

the

Acc

ou

ntin

g S

tan

da

rds

Bo

ard

as

the

pre

scri

be

d f

ram

ew

ork

by

Na

tion

al

Tre

asu

ry.

5.

To

tal

as

se

ts

Du

rin

g t

he

ye

ar

un

de

r re

vie

w,

Lim

po

po

To

uri

sm A

ge

ncy

(L

TA

) tr

an

sfe

rre

d L

imp

op

o W

ildlif

e R

eso

rts

(LW

R)

no

n-c

urr

en

t a

sse

tsa

mo

un

ting

to

R 1

03

.8 m

illio

n a

nd

inve

nto

rie

s a

mo

un

ting

to

R1

68

44

6 t

o L

imp

op

o D

ep

art

me

nt

of

Eco

no

mic

De

velo

pm

en

tE

nvi

ron

me

nt

an

d T

ou

rism

(L

ED

ET

).

6.

Bo

ard

The b

oa

rd o

f th

e e

ntit

y fo

r t

he

year

un

de

r re

vie

w.

Na

me

Ch

an

ge

sK

A D

ipe

la (

Ch

air

pe

rso

n)

MM

Ch

ika

ne

(D

ep

uty

Ch

air

pe

rso

n)

OM

Phash

aP

P M

ote

ne

TE

Mabunda

A D

e K

lerk

(D

r)M

G M

oko

kaO

H M

afe

fe (

Cllr

)R

esi

gn

ed

01

No

vem

be

r 2

01

6M

E N

cha

be

len

g (

Kg

osh

iga

di)

Pa

sse

d a

wa

y 0

4 D

ece

mb

er

20

16

KP

S N

tsh

avh

en

iT

G N

eth

engw

e (

Dr)

SS

S S

eko

roro

(K

go

shi)

J M

ae

ko (

Cllr

)A

pp

oin

ted

12

Ja

nu

ary

20

17

7.

Co

mp

an

y S

ec

reta

ry

The C

om

pa

ny

Se

cre

tary

of

the

en

tity

is T

G K

ots

ed

i:

Bu

sin

ess

ad

dre

ssS

outh

ern

Gate

way

Ext

4N

1 M

ain

Road

Po

lokw

an

e0

69

9

4

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Bo

ard

's R

ep

ort

8.

Bo

ard

me

mb

ers

em

olu

me

nts R

eta

ine

r fe

es

Ce

llp

ho

ne

Re

imb

urs

ive

all

ow

an

ce

To

tal

fee

20

17

To

tal

fee

20

16

Bo

ard

Me

mb

ers

KA

Dip

ela

(C

ha

irp

ers

on

)4

44

,67

11

2,0

00

14

6,6

56

60

3,3

27

60

1,9

00

MM

Ch

ika

ne

(D

ep

uty

ch

air

pe

rso

n)

44

4,6

71

9,0

00

99

,77

75

53

,44

84

89

,29

5O

M P

hash

a8

9,7

20

7,5

00

43

,78

91

41

,00

91

22

,20

6P

P M

ote

ne

89

,72

0-

11

0,8

38

20

0,5

58

13

2,1

44

TE

Mabunda

89

,72

01

,50

03

2,0

82

12

3,3

02

13

5,4

83

OH

Mafe

fe (

Cllr

)-

-4

,24

84

,24

81

8,6

24

ME

Nch

ab

ele

ng

(Kg

osh

iga

di)

60

,52

56

,07

17

,52

37

4,1

19

11

5,6

03

KP

S N

tsh

avh

en

i8

9,7

20

-9

,55

09

9,2

70

10

2,9

31

TG

Neth

engw

e (

Dr)

89

,72

09

,00

09

8,1

29

19

6,8

49

14

3,3

69

SS

S S

eko

roro

89

,72

09

,00

05

1,2

28

14

9,9

48

12

0,6

05

MI M

ats

ete

la-

--

-4

5,4

26

TS

Math

um

bu

--

--

37

,65

6M

S D

ikg

ale

(K

go

shi)

--

--

7,4

77

NA

Dzu

gu

da

--

--

9,7

35

LM

Kg

ale

ma

--

--

11

,47

0JA

Kru

ge

r-

--

-8

,51

7G

L M

alu

leke

--

--

9,5

65

MM

Mpai

--

--

7,5

07

NS

Ne

the

ng

we

(V

ho

-Th

ovh

ela

)-

--

-7

,47

7

1,4

88

,18

75

4,0

71

60

3,8

20

2,1

46

,07

82

,12

6,9

90

Ris

k a

nd

Au

dit

Me

mb

ers

* M

G M

oko

ka9

7,1

88

9,0

00

17

,27

91

23

,46

71

26

,03

1M

P M

ongalo

54

,11

7-

5,0

42

59

,15

95

9,9

54

15

1,3

05

9,0

00

22

,32

11

82

,62

61

85

,98

5

1,6

39

,49

26

3,0

71

62

6,1

41

2,3

28

,70

42

,31

2,9

75

Bo

ard

exp

en

ses,

exc

lud

ing

re

imb

urs

ive

allo

wa

nce

, a

s se

pa

rate

ly d

iscl

ose

d in

No

te 1

8 in

th

e S

tate

me

nt

of

Fin

an

cia

lP

erf

orm

an

ce f

or

20

17

is R

1 7

02

56

4 (

R 1

72

5 1

11

in 2

01

6)

an

d t

he

ne

t ca

sh e

ffe

ct o

f R

2 9

06

57

1

in t

he

Sta

tem

en

t o

fC

om

pa

riso

n o

f B

ud

ge

t a

nd

Act

ua

l Am

ou

nts

.

*Bo

ard

me

mb

er

5


73

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Bo

ard

's R

ep

ort

8.

Bo

ard

me

mb

ers

em

olu

me

nts R

eta

ine

r fe

es

Ce

llp

ho

ne

Re

imb

urs

ive

all

ow

an

ce

To

tal

fee

20

17

To

tal

fee

20

16

Bo

ard

Me

mb

ers

KA

Dip

ela

(C

ha

irp

ers

on

)4

44

,67

11

2,0

00

14

6,6

56

60

3,3

27

60

1,9

00

MM

Ch

ika

ne

(D

ep

uty

ch

air

pe

rso

n)

44

4,6

71

9,0

00

99

,77

75

53

,44

84

89

,29

5O

M P

hash

a8

9,7

20

7,5

00

43

,78

91

41

,00

91

22

,20

6P

P M

ote

ne

89

,72

0-

11

0,8

38

20

0,5

58

13

2,1

44

TE

Mabunda

89

,72

01

,50

03

2,0

82

12

3,3

02

13

5,4

83

OH

Mafe

fe (

Cllr

)-

-4

,24

84

,24

81

8,6

24

ME

Nch

ab

ele

ng

(Kg

osh

iga

di)

60

,52

56

,07

17

,52

37

4,1

19

11

5,6

03

KP

S N

tsh

avh

en

i8

9,7

20

-9

,55

09

9,2

70

10

2,9

31

TG

Neth

engw

e (

Dr)

89

,72

09

,00

09

8,1

29

19

6,8

49

14

3,3

69

SS

S S

eko

roro

89

,72

09

,00

05

1,2

28

14

9,9

48

12

0,6

05

MI M

ats

ete

la-

--

-4

5,4

26

TS

Math

um

bu

--

--

37

,65

6M

S D

ikg

ale

(K

go

shi)

--

--

7,4

77

NA

Dzu

gu

da

--

--

9,7

35

LM

Kg

ale

ma

--

--

11

,47

0JA

Kru

ge

r-

--

-8

,51

7G

L M

alu

leke

--

--

9,5

65

MM

Mpai

--

--

7,5

07

NS

Ne

the

ng

we

(V

ho

-Th

ovh

ela

)-

--

-7

,47

7

1,4

88

,18

75

4,0

71

60

3,8

20

2,1

46

,07

82

,12

6,9

90

Ris

k a

nd

Au

dit

Me

mb

ers

* M

G M

oko

ka9

7,1

88

9,0

00

17

,27

91

23

,46

71

26

,03

1M

P M

ongalo

54

,11

7-

5,0

42

59

,15

95

9,9

54

15

1,3

05

9,0

00

22

,32

11

82

,62

61

85

,98

5

1,6

39

,49

26

3,0

71

62

6,1

41

2,3

28

,70

42

,31

2,9

75

Bo

ard

exp

en

ses,

exc

lud

ing

re

imb

urs

ive

allo

wa

nce

, a

s se

pa

rate

ly d

iscl

ose

d in

No

te 1

8 in

th

e S

tate

me

nt

of

Fin

an

cia

lP

erf

orm

an

ce f

or

20

17

is R

1 7

02

56

4 (

R 1

72

5 1

11

in 2

01

6)

an

d t

he

ne

t ca

sh e

ffe

ct o

f R

2 9

06

57

1

in t

he

Sta

tem

en

t o

fC

om

pa

riso

n o

f B

ud

ge

t a

nd

Act

ua

l Am

ou

nts

.

*Bo

ard

me

mb

er

5


74

Limpopo Tourism AgencyAnnual Financial Statements for the year ended 31 March 2017

Board's Report

Remuneration of executive management

Basic Salary Allowances CompanyContribution

13th Cheque Long serviceaward

ActingAllowance

Total package2017

Total package2016

Chief Executive OfficerTG Kotsedi (Acting) ** - - - - - - - 11,605SF Hlungwani** - - - - - - - 59,003TP Maleka (Acting) * - - - - - 21,278 21,278 -NM Matlala 1,186,461 150,000 107,205 75,888 - - 1,519,554 804,845

1,186,461 150,000 107,205 75,888 - 21,278 1,540,832 875,453

Chief Financial OfficerMS Manamela 1,053,321 156,000 61,917 66,813 - - 1,338,051 1,250,631

Executive ManagersSM Tlaka (Acting COO) - - - - - - - 432,045TG Kotsedi (CS) 1,015,720 55,800 55,065 59,200 - - 1,185,785 1,108,326SF Hlungwani (EDCO) - - - - - - - 1,219,482LR Tshabalala (Tourism Exec) 1,005,959 93,828 124,223 64,238 8,586 - 1,296,834 1,204,178TP Maleka (HR Exec) 921,244 96,000 86,826 58,015 - - 1,162,085 1,086,178P Mayimela (Acting EDCO***) - - - - - - - 6,548

2,942,923 245,628 266,114 181,453 8,586 - 3,644,704 5,056,757

5,182,705 551,628 435,236 324,154 8,586 21,278 6,523,587 7,182,841

* These executives acted as CEO during the year.

** Acted as CEO in the prior year

*** Executive Director Commercial Operations

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05

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5,1

57

)

Ne

t c

as

h f

low

s f

rom

op

era

tin

g a

cti

vit

ies

24

14

,32

2,4

78

70

,39

1,3

56

Ca

sh

flo

ws

fro

m i

nv

es

tin

g a

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vit

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Pu

rch

ase

of

pro

pe

rty,

pla

nt

an

d e

qu

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en

t3

(14

0,2

96

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5,2

61

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2)

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sh

flo

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m f

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nc

ing

ac

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itie

s

Fin

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ase

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nt

gra

nt

surr

en

de

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6,7

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68

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9)

Ne

t c

as

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low

s f

rom

fin

an

cin

g a

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vit

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(24

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72

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7,0

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se

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ca

sh

an

d c

as

h e

qu

iva

len

ts(9

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8,1

90

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1,8

89

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8)

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sh a

nd

ca

sh e

qu

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ts a

t th

e b

eg

inn

ing

of

the

ye

ar

18

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6,2

84

30

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5,8

42

Ca

sh

an

d c

as

h e

qu

iva

len

ts a

s a

t th

e e

nd

of

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ye

ar

78

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8,0

94

18

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29

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Lim

po

po

To

uri

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en

cy

An

nu

al F

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al S

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nts

fo

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ea

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nd

ed

31

Ma

rch

20

17

Sta

tem

en

t o

f C

om

pari

so

n o

f B

ud

get

an

d A

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al

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ou

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Bu

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on

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asi

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ure

s in

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pro

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just

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al B

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mo

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asi

s

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be

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15

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15

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rest

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70

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tal

rev

en

ue

fro

m e

xc

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etr

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sa

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no

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ns

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rev

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vern

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nt

gra

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ub

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67

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7,0

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sh B

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pro

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17

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co

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1.

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se

nta

tio

n o

f A

nn

ua

l F

ina

nc

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tem

en

ts

The a

nn

ua

l fin

an

cia

l sta

tem

en

ts h

ave

be

en

pre

pa

red

in a

cco

rda

nce

with

th

e S

tan

da

rds

of

Ge

ne

rally

Re

cog

nis

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ou

ntin

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RA

P),

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ed

by

the

Acc

ou

ntin

g S

tan

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ard

in a

cco

rda

nce

with

Se

ctio

n 9

1(1

) o

f th

e P

ub

lic F

ina

nce

Ma

na

ge

me

nt

Act

(A

ct 1

of

19

99

).

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ese

an

nu

al f

ina

nci

al s

tate

me

nts

ha

ve b

ee

n p

rep

are

d o

n a

n a

ccru

al b

asi

s o

f a

cco

un

ting

an

d a

re in

acc

ord

an

ce w

ith h

isto

rica

lco

st c

on

ven

tion

as

the

ba

sis

of

me

asu

rem

en

t, u

nle

ss s

pe

cifie

d o

the

rwis

e.

A s

um

ma

ry o

f th

e s

ign

ifica

nt

acc

ou

ntin

g p

olic

ies,

wh

ich

ha

ve b

ee

n c

on

sist

en

tly a

pp

lied

in t

he

pre

pa

ratio

n o

f th

ese

an

nu

al

fina

nci

al s

tate

me

nts

, a

re d

iscl

ose

d b

elo

w.

1.1

Pre

se

nta

tio

n c

urr

en

cy

Th

ese

an

nu

al f

ina

nci

al s

tate

me

nts

are

pre

sen

ted

in S

ou

th A

fric

an

Ra

nd

, w

hic

h is

th

e f

un

ctio

na

l cu

rre

ncy

of

the

en

tity.

1.2

Go

ing

co

nc

ern

as

su

mp

tio

n

Th

ese

an

nu

al f

ina

nci

al s

tate

me

nts

ha

ve b

ee

n p

rep

are

d b

ase

d o

n t

he

exp

ect

atio

n t

ha

t th

e e

ntit

y w

ill c

on

tinu

e t

o o

pe

rate

as

ag

oin

g c

on

cern

fo

r a

t le

ast

th

e n

ext

12

mo

nth

s.

1.3

Sig

nif

ica

nt

jud

ge

me

nts

an

d s

ou

rce

s o

f e

sti

ma

tio

n u

nc

ert

ain

ty

In p

rep

ari

ng

th

e a

nn

ua

l fin

an

cia

l sta

tem

en

ts,

ma

na

ge

me

nt

is r

eq

uir

ed

to

ma

ke e

stim

ate

s a

nd

ass

um

ptio

ns

tha

t a

ffe

ct t

he

am

ou

nts

re

pre

sen

ted

in t

he

an

nu

al f

ina

nci

al s

tate

me

nts

an

d r

ela

ted

dis

clo

sure

s. U

se o

f a

vaila

ble

info

rma

tion

an

d t

he

ap

plic

atio

n o

f ju

dg

em

en

t is

inh

ere

nt

in t

he

fo

rma

tion

of

est

ima

tes.

Act

ua

l re

sults

in t

he

fu

ture

co

uld

diff

er

fro

m t

he

se e

stim

ate

sw

hic

h m

ay

be

ma

teri

al t

o t

he

an

nu

al f

ina

nci

al s

tate

me

nts

. S

ign

ifica

nt

jud

ge

me

nts

incl

ud

e:

Tra

de

re

ce

iva

ble

s,

loa

ns

an

d o

the

r r

ec

eiv

ab

les

The e

ntit

y a

sse

sse

s its

tra

de

re

ceiv

ab

les

an

d lo

an

s a

nd

re

ceiv

ab

les f

or

imp

air

me

nt

at

the

en

d o

f e

ach

re

po

rtin

g p

eri

od

. In

de

term

inin

g w

he

the

r a

n im

pa

irm

en

t lo

ss s

ho

uld

be

re

cord

ed

in s

urp

lus

or

de

ficit,

ma

na

ge

me

nt

ma

kes

jud

ge

me

nts

as

tow

he

the

r th

ere

is o

bse

rva

ble

da

ta in

dic

atin

g a

me

asu

rab

le d

ecr

ea

se in

th

e e

stim

ate

d f

utu

re c

ash

flo

ws

fro

m a

fin

an

cia

l ass

et.

Th

e im

pa

irm

en

t fo

r tr

ad

e r

ece

iva

ble

s a

nd

loa

ns

an

d r

ece

iva

ble

s is

ca

lcu

late

d o

n a

po

rtfo

lio b

asi

s, b

ase

d o

n h

isto

rica

l lo

ssra

tios,

ad

just

ed

fo

r n

atio

na

l an

d in

du

stry

-sp

eci

fic e

con

om

ic c

on

diti

on

s a

nd

oth

er

ind

ica

tors

pre

sen

t a

t th

e r

ep

ort

ing

da

te t

ha

tco

rre

late

with

de

fau

lts o

n t

he

po

rtfo

lio.

Fa

ir v

alu

e e

sti

ma

tio

n

Th

e c

arr

yin

g v

alu

e le

ss im

pa

irm

en

t p

rovi

sio

n o

f tr

ad

e r

ece

iva

ble

s a

nd

pa

yab

les

are

ass

um

ed

to

ap

pro

xim

ate

th

eir

fa

ir v

alu

es.

Th

e s

ho

rt t

erm

re

ceiv

ab

les

an

d p

aya

ble

s a

re n

ot

dis

cou

nte

d.

Imp

air

me

nt

tes

tin

g

Th

e r

eco

vera

ble

am

ou

nts

of

cash

-ge

ne

ratin

g u

nits

an

d in

div

idu

al a

sse

ts h

ave

be

en

de

term

ine

d b

ase

d o

n t

he

hig

he

r o

f va

lue

-in

-use

ca

lcu

latio

ns

an

d f

air

va

lue

s le

ss c

ost

s to

se

ll. T

he

se c

alc

ula

tion

s re

qu

ire

th

e u

se o

f e

stim

ate

s a

nd

ass

um

ptio

ns.

It

isre

aso

na

bly

po

ssib

le t

ha

t th

e a

ssu

mp

tion

ma

y ch

an

ge

wh

ich

ma

y th

en

imp

act

ou

r e

stim

atio

ns

an

d m

ay

the

n r

eq

uir

e a

ma

teri

al

ad

just

me

nt

to t

he

ca

rryi

ng

va

lue

of

tan

gib

le a

sse

ts.

Pro

vis

ion

s

Pro

visi

on

s w

ere

ra

ise

d a

nd

ma

na

ge

me

nt

de

term

ine

d a

n e

stim

ate

ba

sed

on

th

e in

form

atio

n a

vaila

ble

. A

dd

itio

na

l dis

clo

sure

of

the

se e

stim

ate

s o

f p

rovi

sio

ns

are

incl

ud

ed

in n

ote

11

- P

rovi

sio

ns.

All

ow

an

ce

fo

r d

ou

btf

ul

de

bts

On

de

bto

rs a

n im

pa

irm

en

t lo

ss is

re

cog

nis

ed

in s

urp

lus

an

d d

efic

it w

he

n t

he

re is

ob

ject

ive

evi

de

nce

th

at

it is

imp

air

ed

. T

he

imp

air

me

nt

is m

ea

sure

d a

s th

e d

iffe

ren

ce b

etw

ee

n t

he

de

bto

rs c

arr

yin

g a

mo

un

t a

nd

th

e p

rese

nt

valu

e o

f e

stim

ate

d f

utu

re c

ash

flow

s d

isco

un

ted

at

the

eff

ect

ive

inte

rest

ra

te,

com

pu

ted

at

initi

al r

eco

gn

itio

n.

13


81

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Ac

co

un

tin

g P

oli

cie

s

1.

Pre

se

nta

tio

n o

f A

nn

ua

l F

ina

nc

ial

Sta

tem

en

ts

The a

nn

ua

l fin

an

cia

l sta

tem

en

ts h

ave

be

en

pre

pa

red

in a

cco

rda

nce

with

th

e S

tan

da

rds

of

Ge

ne

rally

Re

cog

nis

ed

Acc

ou

ntin

gP

ract

ice

(G

RA

P),

issu

ed

by

the

Acc

ou

ntin

g S

tan

da

rds

Bo

ard

in a

cco

rda

nce

with

Se

ctio

n 9

1(1

) o

f th

e P

ub

lic F

ina

nce

Ma

na

ge

me

nt

Act

(A

ct 1

of

19

99

).

Th

ese

an

nu

al f

ina

nci

al s

tate

me

nts

ha

ve b

ee

n p

rep

are

d o

n a

n a

ccru

al b

asi

s o

f a

cco

un

ting

an

d a

re in

acc

ord

an

ce w

ith h

isto

rica

lco

st c

on

ven

tion

as

the

ba

sis

of

me

asu

rem

en

t, u

nle

ss s

pe

cifie

d o

the

rwis

e.

A s

um

ma

ry o

f th

e s

ign

ifica

nt

acc

ou

ntin

g p

olic

ies,

wh

ich

ha

ve b

ee

n c

on

sist

en

tly a

pp

lied

in t

he

pre

pa

ratio

n o

f th

ese

an

nu

al

fina

nci

al s

tate

me

nts

, a

re d

iscl

ose

d b

elo

w.

1.1

Pre

se

nta

tio

n c

urr

en

cy

Th

ese

an

nu

al f

ina

nci

al s

tate

me

nts

are

pre

sen

ted

in S

ou

th A

fric

an

Ra

nd

, w

hic

h is

th

e f

un

ctio

na

l cu

rre

ncy

of

the

en

tity.

1.2

Go

ing

co

nc

ern

as

su

mp

tio

n

Th

ese

an

nu

al f

ina

nci

al s

tate

me

nts

ha

ve b

ee

n p

rep

are

d b

ase

d o

n t

he

exp

ect

atio

n t

ha

t th

e e

ntit

y w

ill c

on

tinu

e t

o o

pe

rate

as

ag

oin

g c

on

cern

fo

r a

t le

ast

th

e n

ext

12

mo

nth

s.

1.3

Sig

nif

ica

nt

jud

ge

me

nts

an

d s

ou

rce

s o

f e

sti

ma

tio

n u

nc

ert

ain

ty

In p

rep

ari

ng

th

e a

nn

ua

l fin

an

cia

l sta

tem

en

ts,

ma

na

ge

me

nt

is r

eq

uir

ed

to

ma

ke e

stim

ate

s a

nd

ass

um

ptio

ns

tha

t a

ffe

ct t

he

am

ou

nts

re

pre

sen

ted

in t

he

an

nu

al f

ina

nci

al s

tate

me

nts

an

d r

ela

ted

dis

clo

sure

s. U

se o

f a

vaila

ble

info

rma

tion

an

d t

he

ap

plic

atio

n o

f ju

dg

em

en

t is

inh

ere

nt

in t

he

fo

rma

tion

of

est

ima

tes.

Act

ua

l re

sults

in t

he

fu

ture

co

uld

diff

er

fro

m t

he

se e

stim

ate

sw

hic

h m

ay

be

ma

teri

al t

o t

he

an

nu

al f

ina

nci

al s

tate

me

nts

. S

ign

ifica

nt

jud

ge

me

nts

incl

ud

e:

Tra

de

re

ce

iva

ble

s,

loa

ns

an

d o

the

r r

ec

eiv

ab

les

The e

ntit

y a

sse

sse

s its

tra

de

re

ceiv

ab

les

an

d lo

an

s a

nd

re

ceiv

ab

les f

or

imp

air

me

nt

at

the

en

d o

f e

ach

re

po

rtin

g p

eri

od

. In

de

term

inin

g w

he

the

r a

n im

pa

irm

en

t lo

ss s

ho

uld

be

re

cord

ed

in s

urp

lus

or

de

ficit,

ma

na

ge

me

nt

ma

kes

jud

ge

me

nts

as

tow

he

the

r th

ere

is o

bse

rva

ble

da

ta in

dic

atin

g a

me

asu

rab

le d

ecr

ea

se in

th

e e

stim

ate

d f

utu

re c

ash

flo

ws

fro

m a

fin

an

cia

l ass

et.

Th

e im

pa

irm

en

t fo

r tr

ad

e r

ece

iva

ble

s a

nd

loa

ns

an

d r

ece

iva

ble

s is

ca

lcu

late

d o

n a

po

rtfo

lio b

asi

s, b

ase

d o

n h

isto

rica

l lo

ssra

tios,

ad

just

ed

fo

r n

atio

na

l an

d in

du

stry

-sp

eci

fic e

con

om

ic c

on

diti

on

s a

nd

oth

er

ind

ica

tors

pre

sen

t a

t th

e r

ep

ort

ing

da

te t

ha

tco

rre

late

with

de

fau

lts o

n t

he

po

rtfo

lio.

Fa

ir v

alu

e e

sti

ma

tio

n

Th

e c

arr

yin

g v

alu

e le

ss im

pa

irm

en

t p

rovi

sio

n o

f tr

ad

e r

ece

iva

ble

s a

nd

pa

yab

les

are

ass

um

ed

to

ap

pro

xim

ate

th

eir

fa

ir v

alu

es.

Th

e s

ho

rt t

erm

re

ceiv

ab

les

an

d p

aya

ble

s a

re n

ot

dis

cou

nte

d.

Imp

air

me

nt

tes

tin

g

Th

e r

eco

vera

ble

am

ou

nts

of

cash

-ge

ne

ratin

g u

nits

an

d in

div

idu

al a

sse

ts h

ave

be

en

de

term

ine

d b

ase

d o

n t

he

hig

he

r o

f va

lue

-in

-use

ca

lcu

latio

ns

an

d f

air

va

lue

s le

ss c

ost

s to

se

ll. T

he

se c

alc

ula

tion

s re

qu

ire

th

e u

se o

f e

stim

ate

s a

nd

ass

um

ptio

ns.

It

isre

aso

na

bly

po

ssib

le t

ha

t th

e a

ssu

mp

tion

ma

y ch

an

ge

wh

ich

ma

y th

en

imp

act

ou

r e

stim

atio

ns

an

d m

ay

the

n r

eq

uir

e a

ma

teri

al

ad

just

me

nt

to t

he

ca

rryi

ng

va

lue

of

tan

gib

le a

sse

ts.

Pro

vis

ion

s

Pro

visi

on

s w

ere

ra

ise

d a

nd

ma

na

ge

me

nt

de

term

ine

d a

n e

stim

ate

ba

sed

on

th

e in

form

atio

n a

vaila

ble

. A

dd

itio

na

l dis

clo

sure

of

the

se e

stim

ate

s o

f p

rovi

sio

ns

are

incl

ud

ed

in n

ote

11

- P

rovi

sio

ns.

All

ow

an

ce

fo

r d

ou

btf

ul

de

bts

On

de

bto

rs a

n im

pa

irm

en

t lo

ss is

re

cog

nis

ed

in s

urp

lus

an

d d

efic

it w

he

n t

he

re is

ob

ject

ive

evi

de

nce

th

at

it is

imp

air

ed

. T

he

imp

air

me

nt

is m

ea

sure

d a

s th

e d

iffe

ren

ce b

etw

ee

n t

he

de

bto

rs c

arr

yin

g a

mo

un

t a

nd

th

e p

rese

nt

valu

e o

f e

stim

ate

d f

utu

re c

ash

flow

s d

isco

un

ted

at

the

eff

ect

ive

inte

rest

ra

te,

com

pu

ted

at

initi

al r

eco

gn

itio

n.

13


82

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Ac

co

un

tin

g P

oli

cie

s

1.4

Pro

pert

y, p

lan

t a

nd

eq

uip

me

nt

Pro

pe

rty,

pla

nt

an

d e

qu

ipm

en

t a

re t

an

gib

le n

on

-cu

rre

nt

ass

ets

(in

clu

din

g in

fra

stru

ctu

re a

sse

ts)

tha

t a

re h

eld

fo

r u

se in

th

ep

rod

uct

ion

or

sup

ply

of

go

od

s o

r se

rvic

es,

re

nta

l to

oth

ers

, o

r fo

r a

dm

inis

tra

tive

pu

rpo

ses,

an

d a

re e

xpe

cte

d t

o b

e u

sed

du

rin

gm

ore

th

an

on

e p

eri

od

.

Th

e c

ost

of

an

ite

m o

f p

rop

ert

y, p

lan

t a

nd

eq

uip

me

nt

is r

eco

gn

ise

d a

s a

n a

sse

t w

he

n:

it

is p

rob

ab

le t

ha

t fu

ture

eco

no

mic

be

ne

fits

or

serv

ice

po

ten

tial a

sso

cia

ted

with

th

e it

em

will

flo

w t

o t

he

en

tity;

an

d

the

co

st o

f th

e it

em

ca

n b

e m

ea

sure

d r

elia

bly

.

Pro

pe

rty,

pla

nt

an

d e

qu

ipm

en

t is

initi

ally

me

asu

red

at

cost

.

Th

e c

ost

of

an

ite

m o

f p

rop

ert

y, p

lan

t a

nd

eq

uip

me

nt

is t

he

pu

rch

ase

pri

ce a

nd

oth

er

cost

s a

ttri

bu

tab

le t

o b

rin

g t

he

ass

et

to t

he

loca

tion

an

d c

on

diti

on

ne

cess

ary

fo

r it

to b

e c

ap

ab

le o

f o

pe

ratin

g in

th

e m

an

ne

r in

ten

de

d b

y m

an

ag

em

en

t. T

rad

e d

isco

un

ts a

nd

reb

ate

s a

re d

ed

uct

ed

in a

rriv

ing

at

the

co

st.

Wh

ere

an

ass

et

is a

cqu

ire

d t

hro

ug

h a

no

n-e

xch

an

ge

tra

nsa

ctio

n,

its c

ost

is it

s fa

ir v

alu

e a

s a

t d

ate

of

acq

uis

itio

n.

Wh

ere

an

ite

m o

f p

rop

ert

y, p

lan

t a

nd

eq

uip

me

nt

is a

cqu

ire

d in

exc

ha

ng

e f

or

a n

on

-mo

ne

tary

ass

et

or

mo

ne

tary

ass

ets

, o

r a

com

bin

atio

n o

f m

on

eta

ry a

nd

no

n-m

on

eta

ry a

sse

ts,

the

ass

et

acq

uir

ed

is in

itia

lly m

ea

sure

d a

t fa

ir v

alu

e (

the

co

st).

If

the

acq

uir

ed

ite

m's

fa

ir v

alu

e w

as

no

t d

ete

rmin

ab

le,

it's

de

em

ed

co

st is

th

e c

arr

yin

g a

mo

un

t o

f th

e a

sse

t(s)

giv

en

up

.

Wh

en

sig

nifi

can

t co

mp

on

en

ts o

f a

n it

em

of

pro

pe

rty,

pla

nt

an

d e

qu

ipm

en

t h

ave

diff

ere

nt

use

ful l

ive

s, t

he

y a

re a

cco

un

ted

fo

r a

sse

pa

rate

ite

ms

(ma

jor

com

po

ne

nts

) o

f p

rop

ert

y, p

lan

t a

nd

eq

uip

me

nt.

Co

sts

incl

ud

e c

ost

s in

curr

ed

initi

ally

to

acq

uir

e o

r co

nst

ruct

an

ite

m o

f p

rop

ert

y, p

lan

t a

nd

eq

uip

me

nt

an

d c

ost

s in

curr

ed

sub

seq

ue

ntly

to

ad

d t

o,

rep

lace

pa

rt o

f, o

r se

rvic

e it

. If

a r

ep

lace

me

nt

cost

is r

eco

gn

ise

d in

th

e c

arr

yin

g a

mo

un

t o

f a

n it

em

of

pro

pe

rty,

pla

nt

an

d e

qu

ipm

en

t, t

he

ca

rryi

ng

am

ou

nt

of

the

re

pla

ced

pa

rt is

de

reco

gn

ise

d.

Th

e in

itia

l est

ima

te o

f th

e c

ost

s o

f d

ism

an

tlin

g a

nd

re

mo

vin

g t

he

ite

m a

nd

re

sto

rin

g t

he

site

on

wh

ich

it is

loca

ted

is a

lso

incl

ud

ed

in t

he

co

st o

f p

rop

ert

y, p

lan

t a

nd

eq

uip

me

nt,

wh

ere

th

e e

ntit

y is

ob

liga

ted

to

incu

r su

ch e

xpe

nd

iture

, a

nd

wh

ere

th

eo

blig

atio

n a

rise

s a

s a

re

sult

of

acq

uir

ing

th

e a

sse

t o

r u

sin

g it

fo

r p

urp

ose

s o

the

r th

an

th

e p

rod

uct

ion

of

inve

nto

rie

s.

Re

cog

niti

on

of

cost

s in

th

e c

arr

yin

g a

mo

un

t o

f a

n it

em

of

pro

pe

rty,

pla

nt

an

d e

qu

ipm

en

t ce

ase

s w

he

n t

he

ite

m is

in t

he

loca

tion

an

d c

on

diti

on

ne

cess

ary

fo

r it

to b

e c

ap

ab

le o

f o

pe

ratin

g in

th

e m

an

ne

r in

ten

de

d b

y m

an

ag

em

en

t.

Ite

ms

such

as

spa

re p

art

s, s

tan

db

y e

qu

ipm

en

t a

nd

se

rvic

ing

eq

uip

me

nt

are

re

cog

nis

ed

wh

en

th

ey

me

et

the

de

finiti

on

of

pro

pe

rty,

pla

nt

an

d e

qu

ipm

en

t.

Ma

jor

insp

ect

ion

co

sts

wh

ich

are

a c

on

diti

on

of

con

tinu

ing

use

of

an

ite

m o

f p

rop

ert

y, p

lan

t a

nd

eq

uip

me

nt

an

d w

hic

h m

ee

t th

ere

cog

niti

on

cri

teri

a a

bo

ve a

re in

clu

de

d a

s a

re

pla

cem

en

t in

th

e c

ost

of

the

ite

m o

f p

rop

ert

y, p

lan

t a

nd

eq

uip

me

nt.

An

y re

ma

inin

gin

spe

ctio

n c

ost

s fr

om

th

e p

revi

ou

s in

spe

ctio

n a

re d

ere

cog

nis

ed

.

Pro

pe

rty,

pla

nt

an

d e

qu

ipm

en

t is

ca

rrie

d a

t co

st le

ss a

ccu

mu

late

d d

ep

reci

atio

n a

nd

an

y im

pa

irm

en

t lo

sse

s.

Pro

pe

rty,

pla

nt

an

d e

qu

ipm

en

t a

re d

ep

reci

ate

d o

n t

he

str

aig

ht

line

ba

sis

ove

r th

eir

exp

ect

ed

use

ful l

ive

s to

th

eir

est

ima

ted

resi

du

al v

alu

e.

Th

e u

sefu

l liv

es

of

item

s o

f p

rop

ert

y, p

lan

t a

nd

eq

uip

me

nt

ha

ve b

ee

n a

sse

sse

d a

s fo

llow

s:

Ite

mA

ve

rag

e u

se

ful

life

Co

mm

un

ica

tion

eq

uip

me

nt

5-8

ye

ars

Le

ase

ho

ld p

rop

ert

y1

0-2

0 y

ea

rsM

ach

ine

ry,

Pla

nt

an

d E

qu

ipm

en

t5

-15

ye

ars

Fu

rnitu

re a

nd

fix

ture

s5

-15

ye

ars

Mo

tor

veh

icle

s5

-10

ye

ars

Off

ice

eq

uip

me

nt

5-1

2 y

ea

rsIT

eq

uip

me

nt

5-1

0 y

ea

rsM

ob

ile o

ffic

es

10

-15

ye

ars

Su

nd

ry e

qu

ipm

en

t5

-12

ye

ars

Wa

ter

ma

na

ge

me

nt

eq

uim

pm

en

t5

-10

ye

ars

14

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Ac

co

un

tin

g P

oli

cie

s

1.4

Pro

pert

y, p

lan

t a

nd

eq

uip

me

nt

(co

nti

nu

ed

)

Th

e r

esi

du

al v

alu

e,

an

d t

he

use

ful l

ife a

nd

de

pre

cia

tion

me

tho

d o

f e

ach

ass

et

are

re

vie

we

d a

t th

e e

nd

of

ea

ch r

ep

ort

ing

da

te.

Ifth

e e

xpe

cta

tion

s d

iffe

r fr

om

pre

vio

us

est

ima

tes,

th

e c

ha

ng

e is

acc

ou

nte

d f

or

as

a c

ha

ng

e in

acc

ou

ntin

g e

stim

ate

.

Re

vie

win

g t

he

use

ful l

ife o

f a

n a

sse

t o

n a

n a

nn

ua

l ba

sis

do

es

no

t re

qu

ire

th

e e

ntit

y to

am

en

d t

he

pre

vio

us

est

ima

te u

nle

sse

xpe

cta

tion

s d

iffe

r fr

om

th

e p

revi

ou

s e

stim

ate

.

Ea

ch p

art

of

an

ite

m o

f p

rop

ert

y, p

lan

t a

nd

eq

uip

me

nt

with

a c

ost

th

at

is s

ign

ifica

nt

in r

ela

tion

to

th

e t

ota

l co

st o

f th

e it

em

isd

ep

reci

ate

d s

ep

ara

tely

.

Th

e d

ep

reci

atio

n c

ha

rge

fo

r e

ach

pe

rio

d is

re

cog

nis

ed

in s

urp

lus

or

de

ficit

un

less

it is

incl

ud

ed

in t

he

ca

rryi

ng

am

ou

nt

of

an

oth

er

ass

et.

Ite

ms

of

pro

pe

rty,

pla

nt

an

d e

qu

ipm

en

t a

re d

ere

cog

nis

ed

wh

en

th

e a

sse

t is

dis

po

sed

of

or

wh

en

th

ere

are

no

fu

rth

er

eco

no

mic

be

ne

fits

or

serv

ice

po

ten

tial e

xpe

cte

d f

rom

th

e u

se o

f th

e a

sse

t.

Th

e g

ain

or

loss

ari

sin

g f

rom

th

e d

ere

cog

niti

on

of

an

ite

m o

f p

rop

ert

y, p

lan

t a

nd

eq

uip

me

nt

is in

clu

de

d in

su

rplu

s o

r d

efic

it w

hen

the

ite

m is

de

reco

gn

ise

d.

Th

e g

ain

or

loss

ari

sin

g f

rom

th

e d

ere

cog

niti

on

of

an

ite

m o

f p

rop

ert

y, p

lan

t a

nd

eq

uip

me

nt

isd

ete

rmin

ed

as

the

diff

ere

nce

be

twe

en

th

e n

et

dis

po

sal p

roce

ed

s, if

an

y, a

nd

th

e c

arr

yin

g a

mo

un

t o

f th

e it

em

.

1.5

Fin

an

cia

l in

str

um

en

ts

A f

ina

nci

al i

nst

rum

en

t is

an

y co

ntr

act

th

at

giv

es

rise

to

a f

ina

nci

al a

sse

t o

f o

ne

en

tity

an

d a

fin

an

cia

l lia

bili

ty o

r a

re

sid

ua

lin

tere

st o

f a

no

the

r e

ntit

y.

Cla

ss

ific

ati

on

The e

ntit

y h

as

the

fo

llow

ing

typ

es

of

fina

nci

al a

sse

ts (

cla

sse

s a

nd

ca

teg

ory

) a

s re

flect

ed

on

th

e f

ace

of

the

sta

tem

en

t o

ffin

an

cia

l po

sitio

n o

r in

th

e n

ote

s th

ere

to:

` Cla

ss

Ca

teg

ory

Lo

an

s a

nd

re

ceiv

ab

les

Fin

an

cia

l ass

et

me

asu

red

at

am

ort

ise

d c

ost

Fin

an

cia

l lia

bili

ties

me

asu

red

at

am

ort

ise

d c

ost

Fin

an

cia

l lia

bili

ty m

ea

sure

d a

t a

mo

rtis

ed

co

st

Init

ial

rec

og

nit

ion

The e

ntit

y re

cog

nis

es

a f

ina

nci

al a

sse

t o

r a

fin

an

cia

l lia

bili

ty in

its

sta

tem

en

t o

f fin

an

cia

l po

sitio

n w

he

n t

he

en

tity

be

com

es

ap

art

y to

th

e c

on

tra

ctu

al p

rovi

sio

ns

of

the

inst

rum

en

t.

The e

ntit

y re

cog

nis

es

fina

nci

al a

sse

ts u

sin

g t

rad

e d

ate

acc

ou

ntin

g.

Init

ial

me

as

ure

me

nt

of

fin

an

cia

l a

ss

ets

an

d f

ina

nc

ial

lia

bil

itie

s

The e

ntit

y m

ea

sure

s a

fin

an

cia

l ass

et

an

d f

ina

nci

al l

iab

ility

initi

ally

at

its f

air

va

lue

plu

s tr

an

sact

ion

co

sts

tha

t a

re d

ire

ctly

att

rib

uta

ble

to

th

e a

cqu

isiti

on

or

issu

e o

f th

e f

ina

nci

al a

sse

t o

r fin

an

cia

l lia

bili

ty.

15


83

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Ac

co

un

tin

g P

oli

cie

s

1.4

Pro

pert

y, p

lan

t a

nd

eq

uip

me

nt

(co

nti

nu

ed

)

Th

e r

esi

du

al v

alu

e,

an

d t

he

use

ful l

ife a

nd

de

pre

cia

tion

me

tho

d o

f e

ach

ass

et

are

re

vie

we

d a

t th

e e

nd

of

ea

ch r

ep

ort

ing

da

te.

Ifth

e e

xpe

cta

tion

s d

iffe

r fr

om

pre

vio

us

est

ima

tes,

th

e c

ha

ng

e is

acc

ou

nte

d f

or

as

a c

ha

ng

e in

acc

ou

ntin

g e

stim

ate

.

Re

vie

win

g t

he

use

ful l

ife o

f a

n a

sse

t o

n a

n a

nn

ua

l ba

sis

do

es

no

t re

qu

ire

th

e e

ntit

y to

am

en

d t

he

pre

vio

us

est

ima

te u

nle

sse

xpe

cta

tion

s d

iffe

r fr

om

th

e p

revi

ou

s e

stim

ate

.

Ea

ch p

art

of

an

ite

m o

f p

rop

ert

y, p

lan

t a

nd

eq

uip

me

nt

with

a c

ost

th

at

is s

ign

ifica

nt

in r

ela

tion

to

th

e t

ota

l co

st o

f th

e it

em

isd

ep

reci

ate

d s

ep

ara

tely

.

Th

e d

ep

reci

atio

n c

ha

rge

fo

r e

ach

pe

rio

d is

re

cog

nis

ed

in s

urp

lus

or

de

ficit

un

less

it is

incl

ud

ed

in t

he

ca

rryi

ng

am

ou

nt

of

an

oth

er

ass

et.

Ite

ms

of

pro

pe

rty,

pla

nt

an

d e

qu

ipm

en

t a

re d

ere

cog

nis

ed

wh

en

th

e a

sse

t is

dis

po

sed

of

or

wh

en

th

ere

are

no

fu

rth

er

eco

no

mic

be

ne

fits

or

serv

ice

po

ten

tial e

xpe

cte

d f

rom

th

e u

se o

f th

e a

sse

t.

Th

e g

ain

or

loss

ari

sin

g f

rom

th

e d

ere

cog

niti

on

of

an

ite

m o

f p

rop

ert

y, p

lan

t a

nd

eq

uip

me

nt

is in

clu

de

d in

su

rplu

s o

r d

efic

it w

hen

the

ite

m is

de

reco

gn

ise

d.

Th

e g

ain

or

loss

ari

sin

g f

rom

th

e d

ere

cog

niti

on

of

an

ite

m o

f p

rop

ert

y, p

lan

t a

nd

eq

uip

me

nt

isd

ete

rmin

ed

as

the

diff

ere

nce

be

twe

en

th

e n

et

dis

po

sal p

roce

ed

s, if

an

y, a

nd

th

e c

arr

yin

g a

mo

un

t o

f th

e it

em

.

1.5

Fin

an

cia

l in

str

um

en

ts

A f

ina

nci

al i

nst

rum

en

t is

an

y co

ntr

act

th

at

giv

es

rise

to

a f

ina

nci

al a

sse

t o

f o

ne

en

tity

an

d a

fin

an

cia

l lia

bili

ty o

r a

re

sid

ua

lin

tere

st o

f a

no

the

r e

ntit

y.

Cla

ss

ific

ati

on

The e

ntit

y h

as

the

fo

llow

ing

typ

es

of

fina

nci

al a

sse

ts (

cla

sse

s a

nd

ca

teg

ory

) a

s re

flect

ed

on

th

e f

ace

of

the

sta

tem

en

t o

ffin

an

cia

l po

sitio

n o

r in

th

e n

ote

s th

ere

to:

` Cla

ss

Ca

teg

ory

Lo

an

s a

nd

re

ceiv

ab

les

Fin

an

cia

l ass

et

me

asu

red

at

am

ort

ise

d c

ost

Fin

an

cia

l lia

bili

ties

me

asu

red

at

am

ort

ise

d c

ost

Fin

an

cia

l lia

bili

ty m

ea

sure

d a

t a

mo

rtis

ed

co

st

Init

ial

rec

og

nit

ion

The e

ntit

y re

cog

nis

es

a f

ina

nci

al a

sse

t o

r a

fin

an

cia

l lia

bili

ty in

its

sta

tem

en

t o

f fin

an

cia

l po

sitio

n w

he

n t

he

en

tity

be

com

es

ap

art

y to

th

e c

on

tra

ctu

al p

rovi

sio

ns

of

the

inst

rum

en

t.

The e

ntit

y re

cog

nis

es

fina

nci

al a

sse

ts u

sin

g t

rad

e d

ate

acc

ou

ntin

g.

Init

ial

me

as

ure

me

nt

of

fin

an

cia

l a

ss

ets

an

d f

ina

nc

ial

lia

bil

itie

s

The e

ntit

y m

ea

sure

s a

fin

an

cia

l ass

et

an

d f

ina

nci

al l

iab

ility

initi

ally

at

its f

air

va

lue

plu

s tr

an

sact

ion

co

sts

tha

t a

re d

ire

ctly

att

rib

uta

ble

to

th

e a

cqu

isiti

on

or

issu

e o

f th

e f

ina

nci

al a

sse

t o

r fin

an

cia

l lia

bili

ty.

15


84

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Ac

co

un

tin

g P

oli

cie

s

1.5

Fin

an

cia

l in

str

um

en

ts (

co

nti

nu

ed

)

Su

bs

eq

ue

nt

me

as

ure

me

nt

of

fin

an

cia

l a

ss

ets

an

d f

ina

nc

ial

lia

bil

itie

s

The e

ntit

y m

ea

sure

s a

ll fin

an

cia

l ass

ets

an

d f

ina

nci

al l

iab

ilitie

s a

fte

r in

itia

l re

cog

niti

on

usi

ng

th

e f

ollo

win

g c

ate

go

rie

s:

Fin

an

cia

l in

stru

me

nts

at

fair

va

lue

.

Fin

an

cia

l in

stru

me

nts

at

am

ort

ise

d c

ost

.

Fin

an

cia

l in

stru

me

nts

at

cost

.

All

fina

nci

al a

sse

ts m

ea

sure

d a

t a

mo

rtis

ed

co

st,

or

cost

, a

re s

ub

ject

to

an

imp

air

me

nt

revi

ew

.

Fa

ir v

alu

e m

ea

su

rem

en

t c

on

sid

era

tio

ns

Th

e b

est

evi

de

nce

of

fair

va

lue

is q

uo

ted

pri

ces

in a

n a

ctiv

e m

ark

et.

If

the

ma

rke

t fo

r a

fin

an

cia

l in

stru

me

nt

is n

ot

act

ive

, th

ee

ntit

y e

sta

blis

he

s fa

ir v

alu

e b

y u

sin

g a

va

lua

tion

te

chn

iqu

e.

Th

e o

bje

ctiv

e o

f u

sin

g a

va

lua

tion

te

chn

iqu

e is

to

est

ab

lish

wh

at

the

tra

nsa

ctio

n p

rice

wo

uld

ha

ve b

ee

n o

n t

he

me

asu

rem

en

t d

ate

in a

n a

rm’s

len

gth

exc

ha

ng

e m

otiv

ate

d b

y n

orm

al o

pe

ratin

gco

nsi

de

ratio

ns.

Va

lua

tion

te

chn

iqu

es

incl

ud

e u

sin

g r

ece

nt

arm

’s le

ng

th m

ark

et

tra

nsa

ctio

ns

be

twe

en

kn

ow

led

ge

ab

le,

will

ing

pa

rtie

s, if

ava

ilab

le,

refe

ren

ce t

o t

he

cu

rre

nt

fair

va

lue

of

an

oth

er

inst

rum

en

t th

at

is s

ub

sta

ntia

lly t

he

sa

me

, d

isco

un

ted

ca

sh f

low

an

aly

sis

an

d o

ptio

n p

rici

ng

mo

de

ls.

If t

he

re is

a v

alu

atio

n t

ech

niq

ue

co

mm

on

ly u

sed

by

ma

rke

t p

art

icip

an

ts t

o p

rice

th

ein

stru

me

nt

an

d t

ha

t te

chn

iqu

e h

as

be

en

de

mo

nst

rate

d t

o p

rovi

de

re

liab

le e

stim

ate

s o

f p

rice

s o

bta

ine

d in

act

ua

l ma

rke

ttr

an

sact

ion

s, t

he

en

tity

use

s th

at

tech

niq

ue

. T

he

ch

ose

n v

alu

atio

n t

ech

niq

ue

ma

kes

ma

xim

um

use

of

ma

rke

t in

pu

ts a

nd

re

lies

as

little

as

po

ssib

le o

n e

ntit

y-sp

eci

fic in

pu

ts.

It in

corp

ora

tes

all

fact

ors

th

at

ma

rke

t p

art

icip

an

ts w

ou

ld c

on

sid

er

in s

ett

ing

a p

rice

an

d is

co

nsi

ste

nt

with

acc

ep

ted

eco

no

mic

me

tho

do

log

ies

for

pri

cin

g f

ina

nci

al i

nst

rum

en

ts.

Pe

rio

dic

ally

, a

n e

ntit

y ca

libra

tes

the

valu

atio

n t

ech

niq

ue

an

d t

est

s it

for

valid

ity u

sin

g p

rice

s fr

om

an

y o

bse

rva

ble

cu

rre

nt

ma

rke

t tr

an

sact

ion

s in

th

e s

am

e in

stru

me

nt

(i.e

. w

itho

ut

mo

difi

catio

n o

r re

pa

cka

gin

g)

or

ba

sed

on

an

y a

vaila

ble

ob

serv

ab

le m

ark

et

da

ta.

Th

e f

air

va

lue

of

a f

ina

nci

al l

iab

ility

with

a d

em

an

d f

ea

ture

(e

.g.

a d

em

an

d d

ep

osi

t) is

no

t le

ss t

ha

n t

he

am

ou

nt

pa

yab

le o

nd

em

an

d,

dis

cou

nte

d f

rom

th

e f

irst

da

te t

ha

t th

e a

mo

un

t co

uld

be

re

qu

ire

d t

o b

e p

aid

.

Pre

se

nta

tio

n

Inte

rest

re

latin

g t

o a

fin

an

cia

l in

stru

me

nt

or

a c

om

po

ne

nt

tha

t is

a f

ina

nci

al l

iab

ility

is r

eco

gn

ise

d a

s re

ven

ue

or

exp

en

se in

surp

lus

or

de

ficit.

Div

ide

nd

s o

r si

mila

r d

istr

ibu

tion

s re

latin

g t

o a

fin

an

cia

l in

stru

me

nt

or

a c

om

po

ne

nt

tha

t is

a f

ina

nci

al l

iab

ility

is r

eco

gn

ise

d a

sre

ven

ue

or

exp

en

se in

su

rplu

s o

r d

efic

it.

Lo

sse

s a

nd

ga

ins

rela

ting

to

a f

ina

nci

al i

nst

rum

en

t o

r a

co

mp

on

en

t th

at

is a

fin

an

cia

l lia

bili

ty is

re

cog

nis

ed

as

reve

nu

e o

re

xpe

nse

in s

urp

lus

or

de

ficit.

Dis

trib

utio

ns

to h

old

ers

of

resi

du

al i

nte

rest

s a

re r

eco

gn

ise

d b

y th

e e

ntit

y d

ire

ctly

in n

et

ass

ets

. T

ran

sact

ion

co

sts

incu

rre

d o

nre

sid

ua

l in

tere

sts

are

acc

ou

nte

d f

or

as

a d

ed

uct

ion

fro

m n

et

ass

ets

.

A f

ina

nci

al a

sse

t a

nd

a f

ina

nci

al l

iab

ility

are

on

ly o

ffse

t a

nd

th

e n

et

am

ou

nt

pre

sen

ted

in t

he

sta

tem

en

t o

f fin

an

cia

l po

sitio

nw

he

n t

he

en

tity

curr

en

tly h

as

a le

ga

lly e

nfo

rce

ab

le r

igh

t to

se

t o

ff t

he

re

cog

nis

ed

am

ou

nts

an

d in

ten

ds

eith

er

to s

ett

le o

n a

ne

tb

asi

s, o

r to

re

alis

e t

he

ass

et

an

d s

ett

le t

he

lia

bili

ty s

imu

ltan

eo

usl

y.

In a

cco

un

ting

fo

r a

tra

nsf

er

of

a f

ina

nci

al a

sse

t th

at

do

es

no

t q

ua

lify

for

de

reco

gn

itio

n,

the

en

tity

do

es

no

t o

ffse

t th

e t

ran

sfe

rre

da

sse

t a

nd

th

e a

sso

cia

ted

lia

bili

ty.

1.6

Le

as

es

A le

ase

is c

lass

ifie

d a

s a

fin

an

ce le

ase

if it

tra

nsf

ers

su

bst

an

tially

all

the

ris

ks a

nd

re

wa

rds

inci

de

nta

l to

ow

ne

rsh

ip.

A le

ase

iscl

ass

ifie

d a

s a

n o

pe

ratin

g le

ase

if it

do

es

no

t tr

an

sfe

r su

bst

an

tially

all

the

ris

ks a

nd

re

wa

rds

inci

de

nta

l to

ow

ne

rsh

ip.

Wh

en

a le

ase

incl

ud

es

bo

th la

nd

an

d b

uild

ing

s e

lem

en

ts,

the

en

tity

ass

ess

es

the

cla

ssifi

catio

n o

f e

ach

ele

me

nt

sep

ara

tely

.

16

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Ac

co

un

tin

g P

oli

cie

s

1.6

Le

as

es

(c

on

tin

ue

d)

Fin

an

ce

le

as

es

- l

es

se

e

Fin

an

ce le

ase

s a

re r

eco

gn

ise

d a

s a

sse

ts a

nd

lia

bili

ties

in t

he

sta

tem

en

t o

f fin

an

cia

l po

sitio

n a

t a

mo

un

ts e

qu

al t

o t

he

fa

ir v

alu

eo

f th

e le

ase

d p

rop

ert

y o

r, if

low

er,

th

e p

rese

nt

valu

e o

f th

e m

inim

um

lea

se p

aym

en

ts.

Th

e c

orr

esp

on

din

g li

ab

ility

to

th

e le

sso

r is

incl

ud

ed

in t

he

sta

tem

en

t o

f fin

an

cia

l po

sitio

n a

s a

fin

an

ce le

ase

ob

liga

tion

.

Th

e d

isco

un

t ra

te u

sed

in c

alc

ula

ting

th

e p

rese

nt

valu

e o

f th

e m

inim

um

lea

se p

aym

en

ts is

th

e in

tere

st r

ate

imp

licit

in t

he

lea

se.

Min

imu

m le

ase

pa

yme

nts

are

ap

po

rtio

ne

d b

etw

ee

n t

he

fin

an

ce c

ha

rge

an

d r

ed

uct

ion

of

the

ou

tsta

nd

ing

lia

bili

ty.

Th

e f

ina

nce

cha

rge

is a

lloca

ted

to

ea

ch p

eri

od

du

rin

g t

he

lea

se t

erm

so

as

to p

rod

uce

a c

on

sta

nt

pe

rio

dic

ra

te o

f o

n t

he

re

ma

inin

g b

ala

nce

of

the

lia

bili

ty.

An

y co

ntin

ge

nt

ren

ts a

re e

xpe

nse

d in

th

e p

eri

od

in w

hic

h t

he

y a

re in

curr

ed

.

Op

era

tin

g l

ea

se

s -

le

ss

ee

Op

era

ting

lea

se p

aym

en

ts a

re r

eco

gn

ise

d a

s a

n e

xpe

nse

on

a s

tra

igh

t-lin

e b

asi

s o

ver

the

lea

se t

erm

. T

he

diff

ere

nce

be

twe

en

the

am

ou

nts

re

cog

nis

ed

as

an

exp

en

se a

nd

th

e c

on

tra

ctu

al p

aym

en

ts a

re r

eco

gn

ise

d a

s a

n o

pe

ratin

g le

ase

ass

et

or

liab

ility

.

1.7

Inv

en

tori

es

Inve

nto

rie

s a

re in

itia

lly m

ea

sure

d a

t co

st e

xce

pt

wh

ere

inve

nto

rie

s a

re a

cqu

ire

d t

hro

ug

h a

no

n-e

xch

an

ge

tra

nsa

ctio

n,

the

n t

he

irco

sts

are

th

eir

fa

ir v

alu

e a

s a

t th

e d

ate

of

acq

uis

itio

n.

Su

bse

qu

en

tly in

ven

tori

es

are

me

asu

red

at

the

low

er

of

cost

an

d n

et

rea

lisa

ble

va

lue

.

Inve

nto

rie

s a

re m

ea

sure

d a

t th

e lo

we

r o

f co

st a

nd

cu

rre

nt

rep

lace

me

nt

cost

wh

ere

th

ey

are

he

ld f

or;

d

istr

ibu

tion

at

no

ch

arg

e o

r fo

r a

no

min

al c

ha

rge

; o

r

con

sum

ptio

n in

th

e p

rod

uct

ion

pro

cess

of

go

od

s to

be

dis

trib

ute

d a

t n

o c

ha

rge

or

for

a n

om

ina

l ch

arg

e.

Ne

t re

alis

ab

le v

alu

e is

th

e e

stim

ate

d s

elli

ng

pri

ce in

th

e o

rdin

ary

co

urs

e o

f o

pe

ratio

ns

less

th

e e

stim

ate

d c

ost

s o

f co

mp

letio

na

nd

th

e e

stim

ate

d c

ost

s n

ece

ssa

ry t

o m

ake

th

e s

ale

, e

xch

an

ge

or

dis

trib

utio

n.

Cu

rre

nt

rep

lace

me

nt

cost

is t

he

co

st t

he

en

tity

incu

rs t

o a

cqu

ire

th

e a

sse

t o

n t

he

re

po

rtin

g d

ate

.

Th

e c

ost

of

inve

nto

rie

s co

mp

rise

s o

f a

ll co

sts

of

pu

rch

ase

, co

sts

of

con

vers

ion

an

d o

the

r co

sts

incu

rre

d in

bri

ng

ing

th

ein

ven

tori

es

to t

he

ir p

rese

nt

loca

tion

an

d c

on

diti

on

.

Th

e c

ost

of

inve

nto

rie

s o

f ite

ms

tha

t a

re n

ot

ord

ina

rily

inte

rch

an

ge

ab

le a

nd

go

od

s o

r se

rvic

es

pro

du

ced

an

d s

eg

reg

ate

d f

or

spe

cific

pro

ject

s is

ass

ign

ed

usi

ng

sp

eci

fic id

en

tific

atio

n o

f th

e in

div

idu

al c

ost

s.

Th

e c

ost

of

inve

nto

rie

s is

ass

ign

ed

usi

ng

th

e f

irst

-in

, fir

st-o

ut

(FIF

O)

form

ula

. T

he

sa

me

co

st f

orm

ula

is u

sed

fo

r a

ll in

ven

tori

es

ha

vin

g a

sim

ilar

na

ture

an

d u

se t

o t

he

en

tity.

Wh

en

inve

nto

rie

s a

re s

old

, th

e c

arr

yin

g a

mo

un

ts o

f th

ose

inve

nto

rie

s a

re r

eco

gn

ise

d a

s a

n e

xpe

nse

in t

he

pe

rio

d in

wh

ich

th

ere

late

d r

eve

nu

e is

re

cog

nis

ed

. If

th

ere

is n

o r

ela

ted

re

ven

ue

, th

e e

xpe

nse

s a

re r

eco

gn

ise

d w

he

n t

he

go

od

s a

re d

istr

ibu

ted

, o

rre

late

d s

erv

ice

s a

re r

en

de

red

. T

he

am

ou

nt

of

an

y w

rite

-do

wn

of

inve

nto

rie

s to

ne

t re

alis

ab

le v

alu

e o

r cu

rre

nt

rep

lace

me

nt

cost

an

d a

ll lo

sse

s o

f in

ven

tori

es

are

re

cog

nis

ed

as

an

exp

en

se in

th

e p

eri

od

th

e w

rite

-do

wn

or

loss

occ

urs

. T

he

am

ou

nt

of

an

yre

vers

al o

f a

ny

wri

te-d

ow

n o

f in

ven

tori

es,

ari

sin

g f

rom

an

incr

ea

se in

ne

t re

alis

ab

le v

alu

e o

r cu

rre

nt

rep

lace

me

nt

cost

, a

rere

cog

nis

ed

as

a r

ed

uct

ion

in t

he

am

ou

nt

of

inve

nto

rie

s re

cog

nis

ed

as

an

exp

en

se in

th

e p

eri

od

in w

hic

h t

he

re

vers

al o

ccu

rs.

1.8

Imp

air

me

nt

of

no

n-c

as

h-g

en

era

tin

g a

ss

ets

Ca

sh-g

en

era

ting

ass

ets

are

ass

ets

ma

na

ge

d w

ith t

he

ob

ject

ive

of

ge

ne

ratin

g a

co

mm

erc

ial r

etu

rn.

An

ass

et

ge

ne

rate

s a

com

me

rcia

l re

turn

wh

en

it is

de

plo

yed

in a

ma

nn

er

con

sist

en

t w

ith t

ha

t a

do

pte

d b

y a

pro

fit-o

rie

nte

d e

ntit

y.

No

n-c

ash

-ge

ne

ratin

g a

sse

ts a

re a

sse

ts o

the

r th

an

ca

sh-g

en

era

ting

ass

ets

.

17


85

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Ac

co

un

tin

g P

oli

cie

s

1.6

Le

as

es

(c

on

tin

ue

d)

Fin

an

ce

le

as

es

- l

es

se

e

Fin

an

ce le

ase

s a

re r

eco

gn

ise

d a

s a

sse

ts a

nd

lia

bili

ties

in t

he

sta

tem

en

t o

f fin

an

cia

l po

sitio

n a

t a

mo

un

ts e

qu

al t

o t

he

fa

ir v

alu

eo

f th

e le

ase

d p

rop

ert

y o

r, if

low

er,

th

e p

rese

nt

valu

e o

f th

e m

inim

um

lea

se p

aym

en

ts.

Th

e c

orr

esp

on

din

g li

ab

ility

to

th

e le

sso

r is

incl

ud

ed

in t

he

sta

tem

en

t o

f fin

an

cia

l po

sitio

n a

s a

fin

an

ce le

ase

ob

liga

tion

.

Th

e d

isco

un

t ra

te u

sed

in c

alc

ula

ting

th

e p

rese

nt

valu

e o

f th

e m

inim

um

lea

se p

aym

en

ts is

th

e in

tere

st r

ate

imp

licit

in t

he

lea

se.

Min

imu

m le

ase

pa

yme

nts

are

ap

po

rtio

ne

d b

etw

ee

n t

he

fin

an

ce c

ha

rge

an

d r

ed

uct

ion

of

the

ou

tsta

nd

ing

lia

bili

ty.

Th

e f

ina

nce

cha

rge

is a

lloca

ted

to

ea

ch p

eri

od

du

rin

g t

he

lea

se t

erm

so

as

to p

rod

uce

a c

on

sta

nt

pe

rio

dic

ra

te o

f o

n t

he

re

ma

inin

g b

ala

nce

of

the

lia

bili

ty.

An

y co

ntin

ge

nt

ren

ts a

re e

xpe

nse

d in

th

e p

eri

od

in w

hic

h t

he

y a

re in

curr

ed

.

Op

era

tin

g l

ea

se

s -

le

ss

ee

Op

era

ting

lea

se p

aym

en

ts a

re r

eco

gn

ise

d a

s a

n e

xpe

nse

on

a s

tra

igh

t-lin

e b

asi

s o

ver

the

lea

se t

erm

. T

he

diff

ere

nce

be

twe

en

the

am

ou

nts

re

cog

nis

ed

as

an

exp

en

se a

nd

th

e c

on

tra

ctu

al p

aym

en

ts a

re r

eco

gn

ise

d a

s a

n o

pe

ratin

g le

ase

ass

et

or

liab

ility

.

1.7

Inv

en

tori

es

Inve

nto

rie

s a

re in

itia

lly m

ea

sure

d a

t co

st e

xce

pt

wh

ere

inve

nto

rie

s a

re a

cqu

ire

d t

hro

ug

h a

no

n-e

xch

an

ge

tra

nsa

ctio

n,

the

n t

he

irco

sts

are

th

eir

fa

ir v

alu

e a

s a

t th

e d

ate

of

acq

uis

itio

n.

Su

bse

qu

en

tly in

ven

tori

es

are

me

asu

red

at

the

low

er

of

cost

an

d n

et

rea

lisa

ble

va

lue

.

Inve

nto

rie

s a

re m

ea

sure

d a

t th

e lo

we

r o

f co

st a

nd

cu

rre

nt

rep

lace

me

nt

cost

wh

ere

th

ey

are

he

ld f

or;

d

istr

ibu

tion

at

no

ch

arg

e o

r fo

r a

no

min

al c

ha

rge

; o

r

con

sum

ptio

n in

th

e p

rod

uct

ion

pro

cess

of

go

od

s to

be

dis

trib

ute

d a

t n

o c

ha

rge

or

for

a n

om

ina

l ch

arg

e.

Ne

t re

alis

ab

le v

alu

e is

th

e e

stim

ate

d s

elli

ng

pri

ce in

th

e o

rdin

ary

co

urs

e o

f o

pe

ratio

ns

less

th

e e

stim

ate

d c

ost

s o

f co

mp

letio

na

nd

th

e e

stim

ate

d c

ost

s n

ece

ssa

ry t

o m

ake

th

e s

ale

, e

xch

an

ge

or

dis

trib

utio

n.

Cu

rre

nt

rep

lace

me

nt

cost

is t

he

co

st t

he

en

tity

incu

rs t

o a

cqu

ire

th

e a

sse

t o

n t

he

re

po

rtin

g d

ate

.

Th

e c

ost

of

inve

nto

rie

s co

mp

rise

s o

f a

ll co

sts

of

pu

rch

ase

, co

sts

of

con

vers

ion

an

d o

the

r co

sts

incu

rre

d in

bri

ng

ing

th

ein

ven

tori

es

to t

he

ir p

rese

nt

loca

tion

an

d c

on

diti

on

.

Th

e c

ost

of

inve

nto

rie

s o

f ite

ms

tha

t a

re n

ot

ord

ina

rily

inte

rch

an

ge

ab

le a

nd

go

od

s o

r se

rvic

es

pro

du

ced

an

d s

eg

reg

ate

d f

or

spe

cific

pro

ject

s is

ass

ign

ed

usi

ng

sp

eci

fic id

en

tific

atio

n o

f th

e in

div

idu

al c

ost

s.

Th

e c

ost

of

inve

nto

rie

s is

ass

ign

ed

usi

ng

th

e f

irst

-in

, fir

st-o

ut

(FIF

O)

form

ula

. T

he

sa

me

co

st f

orm

ula

is u

sed

fo

r a

ll in

ven

tori

es

ha

vin

g a

sim

ilar

na

ture

an

d u

se t

o t

he

en

tity.

Wh

en

inve

nto

rie

s a

re s

old

, th

e c

arr

yin

g a

mo

un

ts o

f th

ose

inve

nto

rie

s a

re r

eco

gn

ise

d a

s a

n e

xpe

nse

in t

he

pe

rio

d in

wh

ich

th

ere

late

d r

eve

nu

e is

re

cog

nis

ed

. If

th

ere

is n

o r

ela

ted

re

ven

ue

, th

e e

xpe

nse

s a

re r

eco

gn

ise

d w

he

n t

he

go

od

s a

re d

istr

ibu

ted

, o

rre

late

d s

erv

ice

s a

re r

en

de

red

. T

he

am

ou

nt

of

an

y w

rite

-do

wn

of

inve

nto

rie

s to

ne

t re

alis

ab

le v

alu

e o

r cu

rre

nt

rep

lace

me

nt

cost

an

d a

ll lo

sse

s o

f in

ven

tori

es

are

re

cog

nis

ed

as

an

exp

en

se in

th

e p

eri

od

th

e w

rite

-do

wn

or

loss

occ

urs

. T

he

am

ou

nt

of

an

yre

vers

al o

f a

ny

wri

te-d

ow

n o

f in

ven

tori

es,

ari

sin

g f

rom

an

incr

ea

se in

ne

t re

alis

ab

le v

alu

e o

r cu

rre

nt

rep

lace

me

nt

cost

, a

rere

cog

nis

ed

as

a r

ed

uct

ion

in t

he

am

ou

nt

of

inve

nto

rie

s re

cog

nis

ed

as

an

exp

en

se in

th

e p

eri

od

in w

hic

h t

he

re

vers

al o

ccu

rs.

1.8

Imp

air

me

nt

of

no

n-c

as

h-g

en

era

tin

g a

ss

ets

Ca

sh-g

en

era

ting

ass

ets

are

ass

ets

ma

na

ge

d w

ith t

he

ob

ject

ive

of

ge

ne

ratin

g a

co

mm

erc

ial r

etu

rn.

An

ass

et

ge

ne

rate

s a

com

me

rcia

l re

turn

wh

en

it is

de

plo

yed

in a

ma

nn

er

con

sist

en

t w

ith t

ha

t a

do

pte

d b

y a

pro

fit-o

rie

nte

d e

ntit

y.

No

n-c

ash

-ge

ne

ratin

g a

sse

ts a

re a

sse

ts o

the

r th

an

ca

sh-g

en

era

ting

ass

ets

.

17


86

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Ac

co

un

tin

g P

oli

cie

s

1.8

Imp

air

me

nt

of

no

n-c

as

h-g

en

era

tin

g a

ss

ets

(c

on

tin

ue

d)

Ide

nti

fic

ati

on

Wh

en

th

e c

arr

yin

g a

mo

un

t o

f a

no

n-c

ash

-ge

ne

ratin

g a

sse

t e

xce

ed

s its

re

cove

rab

le s

erv

ice

am

ou

nt,

it is

imp

air

ed

.

The e

ntit

y a

sse

sse

s a

t e

ach

re

po

rtin

g d

ate

wh

eth

er

the

re is

an

y in

dic

atio

n t

ha

t a

no

n-c

ash

-ge

ne

ratin

g a

sse

t m

ay

be

imp

air

ed

.If

an

y su

ch in

dic

atio

n e

xist

s, t

he

en

tity

est

ima

tes

the

re

cove

rab

le s

erv

ice

am

ou

nt

of

the

ass

et.

Va

lue

in

us

e

Va

lue

in u

se o

f n

on

-ca

sh-g

en

era

ting

ass

ets

is t

he

pre

sen

t va

lue

of

the

no

n-c

ash

-ge

ne

ratin

g a

sse

ts r

em

ain

ing

se

rvic

e p

ote

ntia

l.

Th

e p

rese

nt

valu

e o

f th

e r

em

ain

ing

se

rvic

e p

ote

ntia

l of

a n

on

-ca

sh-g

en

era

ting

ass

ets

is d

ete

rmin

ed

usi

ng

th

e f

ollo

win

ga

pp

roa

ch:

De

pre

cia

ted

re

pla

ce

me

nt

co

st

ap

pro

ac

h

Th

e p

rese

nt

valu

e o

f th

e r

em

ain

ing

se

rvic

e p

ote

ntia

l of

a n

on

-ca

sh-g

en

era

ting

ass

et

is d

ete

rmin

ed

as

the

de

pre

cia

ted

rep

lace

me

nt

cost

of

the

ass

et.

Th

e r

ep

lace

me

nt

cost

of

an

ass

et

is t

he

co

st t

o r

ep

lace

th

e a

sse

t’s g

ross

se

rvic

e p

ote

ntia

l. T

his

cost

is d

ep

reci

ate

d t

o r

efle

ct t

he

ass

et

in it

s u

sed

co

nd

itio

n.

An

ass

et

ma

y b

e r

ep

lace

d e

ithe

r th

rou

gh

re

pro

du

ctio

n (

rep

lica

tion

)o

f th

e e

xist

ing

ass

et

or

thro

ug

h r

ep

lace

me

nt

of

its g

ross

se

rvic

e p

ote

ntia

l. T

he

de

pre

cia

ted

re

pla

cem

en

t co

st is

me

asu

red

as

the

re

pro

du

ctio

n o

r re

pla

cem

en

t co

st o

f th

e a

sse

t, w

hic

he

ver

is lo

we

r, le

ss a

ccu

mu

late

d d

ep

reci

atio

n c

alc

ula

ted

on

th

e b

asi

s o

fsu

ch c

ost

, to

re

flect

th

e a

lre

ad

y co

nsu

me

d o

r e

xpir

ed

se

rvic

e p

ote

ntia

l of

the

ass

et.

Th

e r

ep

lace

me

nt

cost

an

d r

ep

rod

uct

ion

co

st o

f a

n a

sse

t is

de

term

ine

d o

n a

n “

op

timis

ed

” b

asi

s. T

he

ra

tion

ale

is t

ha

t th

e e

ntit

yw

ou

ld n

ot

rep

lace

or

rep

rod

uce

th

e a

sse

t w

ith a

like

ass

et

if th

e a

sse

t to

be

re

pla

ced

or

rep

rod

uce

d is

an

ove

rde

sig

ne

d o

ro

verc

ap

aci

ty a

sse

t. O

verd

esi

gn

ed

ass

ets

co

nta

in f

ea

ture

s w

hic

h a

re u

nn

ece

ssa

ry f

or

the

go

od

s o

r se

rvic

es

the

ass

et

pro

vid

es.

Ove

rca

pa

city

ass

ets

are

ass

ets

th

at

ha

ve a

gre

ate

r ca

pa

city

th

an

is n

ece

ssa

ry t

o m

ee

t th

e d

em

an

d f

or

go

od

s o

r se

rvic

es

the

ass

et

pro

vid

es.

Th

e d

ete

rmin

atio

n o

f th

e r

ep

lace

me

nt

cost

or

rep

rod

uct

ion

co

st o

f a

n a

sse

t o

n a

n o

ptim

ise

d b

asi

s th

us

refle

cts

the

se

rvic

e p

ote

ntia

l re

qu

ire

d o

f th

e a

sse

t.

Re

sto

rati

on

co

st

ap

pro

ac

h

Re

sto

ratio

n c

ost

is t

he

co

st o

f re

sto

rin

g t

he

se

rvic

e p

ote

ntia

l of

an

ass

et

to it

s p

re-i

mp

air

ed

leve

l. T

he

pre

sen

t va

lue

of

the

rem

ain

ing

se

rvic

e p

ote

ntia

l of

the

ass

et

is d

ete

rmin

ed

by

sub

tra

ctin

g t

he

est

ima

ted

re

sto

ratio

n c

ost

of

the

ass

et

fro

m t

he

curr

en

t co

st o

f re

pla

cin

g t

he

re

ma

inin

g s

erv

ice

po

ten

tial o

f th

e a

sse

t b

efo

re im

pa

irm

en

t. T

he

latt

er

cost

is d

ete

rmin

ed

as

the

de

pre

cia

ted

re

pro

du

ctio

n o

r re

pla

cem

en

t co

st o

f th

e a

sse

t, w

hic

he

ver

is lo

we

r.

Se

rvic

e u

nit

s a

pp

roa

ch

Th

e p

rese

nt

valu

e o

f th

e r

em

ain

ing

se

rvic

e p

ote

ntia

l of

the

ass

et

is d

ete

rmin

ed

by

red

uci

ng

th

e c

urr

en

t co

st o

f th

e r

em

ain

ing

serv

ice

po

ten

tial o

f th

e a

sse

t b

efo

re im

pa

irm

en

t, t

o c

on

form

to

th

e r

ed

uce

d n

um

be

r o

f se

rvic

e u

nits

exp

ect

ed

fro

m t

he

ass

et

inits

imp

air

ed

sta

te.

Th

e c

urr

en

t co

st o

f re

pla

cin

g t

he

re

ma

inin

g s

erv

ice

po

ten

tial o

f th

e a

sse

t b

efo

re im

pa

irm

en

t is

de

term

ine

d a

sth

e d

ep

reci

ate

d r

ep

rod

uct

ion

or

rep

lace

me

nt

cost

of

the

ass

et

be

fore

imp

air

me

nt,

wh

ich

eve

r is

low

er.

Re

co

gn

itio

n a

nd

me

as

ure

me

nt

If t

he

re

cove

rab

le s

erv

ice

am

ou

nt

of

a n

on

-ca

sh-g

en

era

ting

ass

et

is le

ss t

ha

n it

s ca

rryi

ng

am

ou

nt,

th

e c

arr

yin

g a

mo

un

t o

f th

ea

sse

t is

re

du

ced

to

its

reco

vera

ble

se

rvic

e a

mo

un

t. T

his

re

du

ctio

n is

an

imp

air

me

nt

loss

.

An

imp

air

me

nt

loss

is r

eco

gn

ise

d im

me

dia

tely

in s

urp

lus

or

de

ficit.

Wh

en

th

e a

mo

un

t e

stim

ate

d f

or

an

imp

air

me

nt

loss

is g

rea

ter

tha

n t

he

ca

rryi

ng

am

ou

nt

of

the

no

n-c

ash

-ge

ne

ratin

g a

sse

t to

wh

ich

it r

ela

tes,

th

e e

ntit

y re

cog

nis

es

a li

ab

ility

on

ly t

o t

he

ext

en

t th

at

is a

re

qu

ire

me

nt

in t

he

Sta

nd

ard

s o

f G

RA

P.

Aft

er

the

re

cog

niti

on

of

an

imp

air

me

nt

loss

, th

e d

ep

reci

atio

n (

am

ort

isa

tion

) ch

arg

e f

or

the

no

n-c

ash

-ge

ne

ratin

g a

sse

t is

ad

just

ed

in f

utu

re p

eri

od

s to

allo

cate

th

e n

on

-ca

sh-g

en

era

ting

ass

et’s

re

vise

d c

arr

yin

g a

mo

un

t, le

ss it

s re

sid

ua

l va

lue

(if

an

y),

on

a s

yste

ma

tic b

asi

s o

ver

its r

em

ain

ing

use

ful l

ife.

18

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Ac

co

un

tin

g P

oli

cie

s

1.8

Imp

air

me

nt

of

no

n-c

as

h-g

en

era

tin

g a

ss

ets

(c

on

tin

ue

d)

Re

ve

rsa

l o

f a

n i

mp

air

me

nt

los

s

The e

ntit

y a

sse

ss a

t e

ach

re

po

rtin

g d

ate

wh

eth

er

the

re is

an

y in

dic

atio

n t

ha

t a

n im

pa

irm

en

t lo

ss r

eco

gn

ise

d in

pri

or

pe

rio

ds

for

a n

on

-ca

sh-g

en

era

ting

ass

et

ma

y n

o lo

ng

er

exi

st o

r m

ay

ha

ve d

ecr

ea

sed

. If

an

y su

ch in

dic

atio

n e

xist

s, t

he

en

tity

est

ima

tes

the

reco

vera

ble

se

rvic

e a

mo

un

t o

f th

at

ass

et.

An

imp

air

me

nt

loss

re

cog

nis

ed

in p

rio

r p

eri

od

s fo

r a

no

n-c

ash

-ge

ne

ratin

g a

sse

t is

re

vers

ed

if t

he

re h

as

be

en

a c

ha

ng

e in

th

ee

stim

ate

s u

sed

to

de

term

ine

th

e a

sse

t’s r

eco

vera

ble

se

rvic

e a

mo

un

t si

nce

th

e la

st im

pa

irm

en

t lo

ss w

as

reco

gn

ise

d.

Th

eca

rryi

ng

am

ou

nt

of

the

ass

et

is in

cre

ase

d t

o it

s re

cove

rab

le s

erv

ice

am

ou

nt.

Th

e in

cre

ase

is a

re

vers

al o

f a

n im

pa

irm

en

t lo

ss.

Th

e in

cre

ase

d c

arr

yin

g a

mo

un

t o

f a

n a

sse

t a

ttri

bu

tab

le t

o a

re

vers

al o

f a

n im

pa

irm

en

t lo

ss d

oe

s n

ot

exc

ee

d t

he

ca

rryi

ng

am

ou

nt

tha

t w

ou

ld h

ave

be

en

de

term

ine

d (

ne

t o

f d

ep

reci

atio

n o

r a

mo

rtis

atio

n)

ha

d n

o im

pa

irm

en

t lo

ss b

ee

n r

eco

gn

ise

d f

or

the

ass

et

in p

rio

r p

eri

od

s.

A r

eve

rsa

l of

an

imp

air

me

nt

loss

fo

r a

no

n-c

ash

-ge

ne

ratin

g a

sse

t is

re

cog

nis

ed

imm

ed

iate

ly in

su

rplu

s o

r d

efic

it.

Aft

er

a r

eve

rsa

l of

an

imp

air

me

nt

loss

is r

eco

gn

ise

d,

the

de

pre

cia

tion

(a

mo

rtis

atio

n)

cha

rge

fo

r th

e n

on

-ca

sh-g

en

era

ting

ass

et

is a

dju

ste

d in

fu

ture

pe

rio

ds

to a

lloca

te t

he

no

n-c

ash

-ge

ne

ratin

g a

sse

t’s r

evi

sed

ca

rryi

ng

am

ou

nt,

less

its

resi

du

al v

alu

e (

if a

ny)

,o

n a

sys

tem

atic

ba

sis

ove

r its

re

ma

inin

g u

sefu

l life

.

Re

de

sig

na

tio

n

Th

e r

ed

esi

gn

atio

n o

f a

sse

ts f

rom

a c

ash

-ge

ne

ratin

g a

sse

t to

a n

on

-ca

sh-g

en

era

ting

ass

et

or

fro

m a

no

n-c

ash

-ge

ne

ratin

g a

sse

tto

a c

ash

-ge

ne

ratin

g a

sse

t o

nly

occ

ur

wh

en

th

ere

is c

lea

r e

vid

en

ce t

ha

t su

ch a

re

de

sig

na

tion

is a

pp

rop

ria

te.

1.9

Re

ve

nu

e p

aya

ble

to

Pro

vin

cia

l R

ev

en

ue

Fu

nd

All

reve

nu

e c

olle

cte

d n

ot

ap

pro

pri

ate

d b

y th

e le

gis

latio

n in

te

rms

of

PF

MA

sh

ou

ld b

e t

ran

sfe

rre

d t

o t

he

Pro

vin

cia

l Re

ven

ue

Fu

nd

in t

erm

s o

f tr

ea

sury

inst

ruct

ion

no

te 3

of

20

14

wh

ich

re

ad

s th

at

'Sch

ed

ule

3C

pu

blic

en

titie

s m

ust

tra

nsf

er

the

re

ven

ue

colle

cte

d t

o t

he

Pro

vin

cia

l Re

ven

ue

Fu

nd

on

mo

nth

ly b

asi

s th

rou

gh

th

e r

esp

ect

ive

lin

e d

ep

art

me

nt.

'

1.1

0E

mp

loye

e b

en

efi

ts

Em

plo

yee

be

ne

fits

are

all

form

s o

f co

nsi

de

ratio

n g

ive

n b

y a

n e

ntit

y in

exc

ha

ng

e f

or

serv

ice

re

nd

ere

d b

y e

mp

loye

es.

19


87

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Ac

co

un

tin

g P

oli

cie

s

1.8

Imp

air

me

nt

of

no

n-c

as

h-g

en

era

tin

g a

ss

ets

(c

on

tin

ue

d)

Re

ve

rsa

l o

f a

n i

mp

air

me

nt

los

s

The e

ntit

y a

sse

ss a

t e

ach

re

po

rtin

g d

ate

wh

eth

er

the

re is

an

y in

dic

atio

n t

ha

t a

n im

pa

irm

en

t lo

ss r

eco

gn

ise

d in

pri

or

pe

rio

ds

for

a n

on

-ca

sh-g

en

era

ting

ass

et

ma

y n

o lo

ng

er

exi

st o

r m

ay

ha

ve d

ecr

ea

sed

. If

an

y su

ch in

dic

atio

n e

xist

s, t

he

en

tity

est

ima

tes

the

reco

vera

ble

se

rvic

e a

mo

un

t o

f th

at

ass

et.

An

imp

air

me

nt

loss

re

cog

nis

ed

in p

rio

r p

eri

od

s fo

r a

no

n-c

ash

-ge

ne

ratin

g a

sse

t is

re

vers

ed

if t

he

re h

as

be

en

a c

ha

ng

e in

th

ee

stim

ate

s u

sed

to

de

term

ine

th

e a

sse

t’s r

eco

vera

ble

se

rvic

e a

mo

un

t si

nce

th

e la

st im

pa

irm

en

t lo

ss w

as

reco

gn

ise

d.

Th

eca

rryi

ng

am

ou

nt

of

the

ass

et

is in

cre

ase

d t

o it

s re

cove

rab

le s

erv

ice

am

ou

nt.

Th

e in

cre

ase

is a

re

vers

al o

f a

n im

pa

irm

en

t lo

ss.

Th

e in

cre

ase

d c

arr

yin

g a

mo

un

t o

f a

n a

sse

t a

ttri

bu

tab

le t

o a

re

vers

al o

f a

n im

pa

irm

en

t lo

ss d

oe

s n

ot

exc

ee

d t

he

ca

rryi

ng

am

ou

nt

tha

t w

ou

ld h

ave

be

en

de

term

ine

d (

ne

t o

f d

ep

reci

atio

n o

r a

mo

rtis

atio

n)

ha

d n

o im

pa

irm

en

t lo

ss b

ee

n r

eco

gn

ise

d f

or

the

ass

et

in p

rio

r p

eri

od

s.

A r

eve

rsa

l of

an

imp

air

me

nt

loss

fo

r a

no

n-c

ash

-ge

ne

ratin

g a

sse

t is

re

cog

nis

ed

imm

ed

iate

ly in

su

rplu

s o

r d

efic

it.

Aft

er

a r

eve

rsa

l of

an

imp

air

me

nt

loss

is r

eco

gn

ise

d,

the

de

pre

cia

tion

(a

mo

rtis

atio

n)

cha

rge

fo

r th

e n

on

-ca

sh-g

en

era

ting

ass

et

is a

dju

ste

d in

fu

ture

pe

rio

ds

to a

lloca

te t

he

no

n-c

ash

-ge

ne

ratin

g a

sse

t’s r

evi

sed

ca

rryi

ng

am

ou

nt,

less

its

resi

du

al v

alu

e (

if a

ny)

,o

n a

sys

tem

atic

ba

sis

ove

r its

re

ma

inin

g u

sefu

l life

.

Re

de

sig

na

tio

n

Th

e r

ed

esi

gn

atio

n o

f a

sse

ts f

rom

a c

ash

-ge

ne

ratin

g a

sse

t to

a n

on

-ca

sh-g

en

era

ting

ass

et

or

fro

m a

no

n-c

ash

-ge

ne

ratin

g a

sse

tto

a c

ash

-ge

ne

ratin

g a

sse

t o

nly

occ

ur

wh

en

th

ere

is c

lea

r e

vid

en

ce t

ha

t su

ch a

re

de

sig

na

tion

is a

pp

rop

ria

te.

1.9

Re

ve

nu

e p

aya

ble

to

Pro

vin

cia

l R

ev

en

ue

Fu

nd

All

reve

nu

e c

olle

cte

d n

ot

ap

pro

pri

ate

d b

y th

e le

gis

latio

n in

te

rms

of

PF

MA

sh

ou

ld b

e t

ran

sfe

rre

d t

o t

he

Pro

vin

cia

l Re

ven

ue

Fu

nd

in t

erm

s o

f tr

ea

sury

inst

ruct

ion

no

te 3

of

20

14

wh

ich

re

ad

s th

at

'Sch

ed

ule

3C

pu

blic

en

titie

s m

ust

tra

nsf

er

the

re

ven

ue

colle

cte

d t

o t

he

Pro

vin

cia

l Re

ven

ue

Fu

nd

on

mo

nth

ly b

asi

s th

rou

gh

th

e r

esp

ect

ive

lin

e d

ep

art

me

nt.

'

1.1

0E

mp

loye

e b

en

efi

ts

Em

plo

yee

be

ne

fits

are

all

form

s o

f co

nsi

de

ratio

n g

ive

n b

y a

n e

ntit

y in

exc

ha

ng

e f

or

serv

ice

re

nd

ere

d b

y e

mp

loye

es.

19


88

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Acco

un

tin

g P

olicie

s

1.1

0E

mp

loye

e b

en

efi

ts (

co

nti

nu

ed

)

Sh

ort

-te

rm e

mp

loye

e b

en

efi

ts

Sh

ort

-te

rm e

mp

loye

e b

en

efit

s a

re e

mp

loye

e b

en

efit

s (o

the

r th

an

te

rmin

atio

n b

en

efit

s) t

ha

t a

re d

ue

to

be

se

ttle

d w

ithin

tw

elv

em

on

ths

aft

er

the

en

d o

f th

e p

eri

od

in w

hic

h t

he

em

plo

yee

s re

nd

er

the

re

late

d s

erv

ice

.

Sh

ort

-te

rm e

mp

loye

e b

en

efit

s in

clu

de

ite

ms

such

as:

w

ag

es,

sa

lari

es

an

d s

oci

al s

ecu

rity

co

ntr

ibu

tion

s;

sho

rt-t

erm

co

mp

en

sate

d a

bse

nce

s (s

uch

as

pa

id a

nn

ua

l le

ave

an

d p

aid

sic

k le

ave

) w

he

re t

he

co

mp

en

satio

n f

or

the

ab

sen

ces

is d

ue

to

be

se

ttle

d w

ithin

tw

elv

e m

on

ths

aft

er

the

en

d o

f th

e r

ep

ort

ing

pe

rio

d in

wh

ich

th

e e

mp

loye

es

ren

de

r th

e r

ela

ted

em

plo

yee

se

rvic

e;

b

on

us,

ince

ntiv

e a

nd

pe

rfo

rma

nce

re

late

d p

aym

en

ts p

aya

ble

with

in t

we

lve

mo

nth

s a

fte

r th

e e

nd

of

the

re

po

rtin

gp

eri

od

in w

hic

h t

he

em

plo

yee

s re

nd

er

the

re

late

d s

erv

ice

; a

nd

no

n-m

on

eta

ry b

en

efit

s (f

or

exa

mp

le,

me

dic

al c

are

, a

nd

fre

e o

r su

bsi

dis

ed

go

od

s o

r se

rvic

es

such

as

ho

usi

ng

, ca

rsa

nd

ce

llph

on

es)

fo

r cu

rre

nt

em

plo

yee

s.

Wh

en

an

em

plo

yee

ha

s re

nd

ere

d s

erv

ice

to

th

e e

ntit

y d

uri

ng

a r

ep

ort

ing

pe

rio

d,

the

en

tity

reco

gn

ise

th

e u

nd

isco

un

ted

am

ou

nt

of

sho

rt-t

erm

em

plo

yee

be

ne

fits

exp

ect

ed

to

be

pa

id in

exc

ha

ng

e f

or

tha

t se

rvic

e:

a

s a

lia

bili

ty (

acc

rue

d e

xpe

nse

), a

fte

r d

ed

uct

ing

an

y a

mo

un

t a

lre

ad

y p

aid

. If

th

e a

mo

un

t a

lre

ad

y p

aid

exc

ee

ds

the

un

dis

cou

nte

d a

mo

un

t o

f th

e b

en

efit

s, t

he

en

tity

reco

gn

ise

th

at

exc

ess

as

an

ass

et

(pre

pa

id e

xpe

nse

) to

th

e e

xte

nt

tha

t th

e p

rep

aym

en

t w

ill le

ad

to

, fo

r e

xam

ple

, a

re

du

ctio

n in

fu

ture

pa

yme

nts

or

a c

ash

re

fun

d;

an

d

as

an

exp

en

se,

un

less

an

oth

er

Sta

nd

ard

re

qu

ire

s o

r p

erm

its t

he

incl

usi

on

of

the

be

ne

fits

in t

he

co

st o

f a

n a

sse

t.

Th

e e

xpe

cte

d c

ost

of

com

pe

nsa

ted

ab

sen

ces

is r

eco

gn

ise

d a

s a

n e

xpe

nse

as

the

em

plo

yee

s re

nd

er

serv

ice

s th

at

incr

ea

seth

eir

en

title

me

nt

or,

in t

he

ca

se o

f n

on

-acc

um

ula

ting

ab

sen

ces,

wh

en

th

e a

bse

nce

occ

urs

. T

he

en

tity

me

asu

re t

he

exp

ect

ed

cost

of

acc

um

ula

ting

co

mp

en

sate

d a

bse

nce

s a

s th

e a

dd

itio

na

l am

ou

nt

tha

t th

e e

ntit

y e

xpe

cts

to p

ay

as

a r

esu

lt o

f th

e u

nu

sed

en

title

me

nt

tha

t h

as

acc

um

ula

ted

at

the

re

po

rtin

g d

ate

.

Th

e e

ntit

y re

cog

nis

e t

he

exp

ect

ed

co

st o

f b

on

us,

ince

ntiv

e a

nd

pe

rfo

rma

nce

re

late

d p

aym

en

ts w

he

n t

he

en

tity

ha

s a

pre

sen

tle

ga

l or

con

stru

ctiv

e o

blig

atio

n t

o m

ake

su

ch p

aym

en

ts a

s a

re

sult

of

pa

st e

ven

ts a

nd

a r

elia

ble

est

ima

te o

f th

e o

blig

atio

n c

an

be

ma

de

. A

pre

sen

t o

blig

atio

n e

xist

s w

he

n t

he

en

tity

ha

s n

o r

ea

listic

alte

rna

tive

bu

t to

ma

ke t

he

pa

yme

nts

.

Po

st-

em

plo

yme

nt

be

ne

fits

Po

st-e

mp

loym

en

t b

en

efit

s a

re e

mp

loye

e b

en

efit

s (o

the

r th

an

te

rmin

atio

n b

en

efit

s) w

hic

h a

re p

aya

ble

aft

er

the

co

mp

letio

n o

fe

mp

loym

en

t.

Po

st-e

mp

loym

en

t b

en

efit

pla

ns

are

fo

rma

l or

info

rma

l arr

an

ge

me

nts

un

de

r w

hic

h a

n e

ntit

y p

rovi

de

s p

ost

-em

plo

yme

nt

be

ne

fits

for

on

e o

r m

ore

em

plo

yee

s.

Mu

lti-e

mp

loye

r p

lan

s a

re d

efin

ed

co

ntr

ibu

tion

pla

ns

(oth

er

tha

n s

tate

pla

ns

an

d c

om

po

site

so

cia

l se

curi

ty p

rog

ram

me

s) o

rd

efin

ed

be

ne

fit p

lan

s (o

the

r th

an

sta

te p

lan

s) t

ha

t p

oo

l th

e a

sse

ts c

on

trib

ute

d b

y va

rio

us

en

titie

s th

at

are

no

t u

nd

er

com

mo

nco

ntr

ol a

nd

use

th

ose

ass

ets

to

pro

vid

e b

en

efit

s to

em

plo

yee

s o

f m

ore

th

an

on

e e

ntit

y, o

n t

he

ba

sis

tha

t co

ntr

ibu

tion

an

db

en

efit

leve

ls a

re d

ete

rmin

ed

with

ou

t re

ga

rd t

o t

he

ide

ntit

y o

f th

e e

ntit

y th

at

em

plo

ys t

he

em

plo

yee

s co

nce

rne

d.

Ac

tua

ria

l a

ss

um

pti

on

s

Act

ua

ria

l ass

um

ptio

ns

are

un

bia

sed

an

d m

utu

ally

co

mp

atib

le.

Fin

an

cia

l ass

um

ptio

ns

are

ba

sed

on

ma

rke

t e

xpe

cta

tion

s, a

t th

e r

ep

ort

ing

da

te,

for

the

pe

rio

d o

ver

wh

ich

th

e o

blig

atio

ns

are

to

be

se

ttle

d.

Lo

ng

se

rvic

e a

wa

rd o

blig

atio

ns

are

me

asu

red

on

a b

asi

s th

at

refle

cts:

e

stim

ate

d f

utu

re s

ala

ry in

cre

ase

s;

the

be

ne

fits

set

ou

t in

th

e t

erm

s o

f th

e a

gre

em

en

t (o

r re

sulti

ng

fro

m a

ny

con

stru

ctiv

e o

blig

atio

n t

ha

t g

oe

s b

eyo

nd

tho

se t

erm

s) a

t th

e r

ep

ort

ing

da

te;

an

d

est

ima

ted

fu

ture

ch

an

ge

s in

th

e le

vel o

f a

ny

sta

te b

en

efit

s th

at

aff

ect

th

e b

en

efit

s p

aya

ble

un

de

r th

e lo

ng

se

rvic

ea

gre

em

en

t, if

, a

nd

on

ly if

, e

ithe

r:

tho

se c

ha

ng

es

we

re e

na

cte

d b

efo

re t

he

re

po

rtin

g d

ate

; o

r

pa

st h

isto

ry,

or

oth

er

relia

ble

evi

de

nce

, in

dic

ate

s th

at

tho

se s

tate

be

ne

fits

will

ch

an

ge

in s

om

e p

red

icta

ble

ma

nn

er,

for

exa

mp

le,

in li

ne

with

fu

ture

ch

an

ge

s in

ge

ne

ral p

rice

leve

ls o

r g

en

era

l sa

lary

leve

ls.

20

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Ac

co

un

tin

g P

oli

cie

s

1.1

1P

rov

isio

ns

an

d c

on

tin

ge

nc

ies

Pro

visi

on

s a

re r

eco

gn

ise

d w

he

n:

th

e e

ntit

y h

as

a p

rese

nt

ob

liga

tion

as

a r

esu

lt o

f a

pa

st e

ven

t;

it is

pro

ba

ble

th

at

an

ou

tflo

w o

f re

sou

rce

s e

mb

od

yin

g e

con

om

ic b

en

efit

s o

r se

rvic

e p

ote

ntia

l will

be

re

qu

ire

d t

ose

ttle

th

e o

blig

atio

n;

an

d

a r

elia

ble

est

ima

te c

an

be

ma

de

of

the

ob

liga

tion

.

Th

e a

mo

un

t o

f a

pro

visi

on

is t

he

be

st e

stim

ate

of

the

exp

en

ditu

re e

xpe

cte

d t

o b

e r

eq

uir

ed

to

se

ttle

th

e p

rese

nt

ob

liga

tion

at

the

rep

ort

ing

da

te.

Wh

ere

th

e e

ffe

ct o

f tim

e v

alu

e o

f m

on

ey

is m

ate

ria

l, th

e a

mo

un

t o

f a

pro

visi

on

is t

he

pre

sen

t va

lue

of

the

exp

en

ditu

res

exp

ect

ed

to

be

re

qu

ire

d t

o s

ett

le t

he

ob

liga

tion

.

Th

e d

isco

un

t ra

te is

a p

re-t

ax

rate

th

at

refle

cts

curr

en

t m

ark

et

ass

ess

me

nts

of

the

tim

e v

alu

e o

f m

on

ey

an

d t

he

ris

ks s

pe

cific

to

the

lia

bili

ty.

Wh

ere

so

me

or

all

of

the

exp

en

ditu

re r

eq

uir

ed

to

se

ttle

a p

rovi

sio

n is

exp

ect

ed

to

be

re

imb

urs

ed

by

an

oth

er

pa

rty,

th

ere

imb

urs

em

en

t is

re

cog

nis

ed

wh

en

, a

nd

on

ly w

he

n,

it is

vir

tua

lly c

ert

ain

th

at

reim

bu

rse

me

nt

will

be

re

ceiv

ed

if t

he

en

tity

sett

les

the

ob

liga

tion

. T

he

re

imb

urs

em

en

t is

tre

ate

d a

s a

se

pa

rate

ass

et.

Th

e a

mo

un

t re

cog

nis

ed

fo

r th

e r

eim

bu

rse

me

nt

do

es

no

te

xce

ed

th

e a

mo

un

t o

f th

e p

rovi

sio

n.

Pro

visi

on

s a

re r

evi

ew

ed

at

ea

ch r

ep

ort

ing

da

te a

nd

ad

just

ed

to

re

flect

th

e c

urr

en

t b

est

est

ima

te.

Pro

visi

on

s a

re r

eve

rse

d if

it is

no

lon

ge

r p

rob

ab

le t

ha

t a

n o

utf

low

of

reso

urc

es

em

bo

dyi

ng

eco

no

mic

be

ne

fits

or

serv

ice

po

ten

tial w

ill b

e r

eq

uir

ed

, to

se

ttle

th

eo

blig

atio

n.

Wh

ere

dis

cou

ntin

g is

use

d,

the

ca

rryi

ng

am

ou

nt

of

a p

rovi

sio

n in

cre

ase

s in

ea

ch p

eri

od

to

re

flect

th

e p

ass

ag

e o

f tim

e.

Th

isin

cre

ase

is r

eco

gn

ise

d a

s a

n in

tere

st e

xpe

nse

.

A p

rovi

sio

n is

use

d o

nly

fo

r e

xpe

nd

iture

s fo

r w

hic

h t

he

pro

visi

on

wa

s o

rig

ina

lly r

eco

gn

ise

d.

Pro

visi

on

s a

re n

ot

reco

gn

ise

d f

or

futu

re o

pe

ratin

g d

efic

its.

If a

n e

ntit

y h

as

a c

on

tra

ct t

ha

t is

on

ero

us,

th

e p

rese

nt

ob

liga

tion

(n

et

of

reco

veri

es)

un

de

r th

e c

on

tra

ct is

re

cog

nis

ed

an

dm

ea

sure

d a

s a

pro

visi

on

.

A c

on

stru

ctiv

e o

blig

atio

n t

o r

est

ruct

ure

ari

ses

on

ly w

he

n a

n e

ntit

y:

ha

s a

de

taile

d f

orm

al p

lan

fo

r th

e r

est

ruct

uri

ng

, id

en

tifyi

ng

at

lea

st:

-th

e a

ctiv

ity/o

pe

ratin

g u

nit

or

pa

rt o

f a

act

ivity

/op

era

ting

un

it co

nce

rne

d;

-th

e e

xpe

nd

iture

s th

at

will

be

un

de

rta

ken

; a

nd

-wh

en

th

e p

lan

will

be

imp

lem

en

ted

; a

nd

h

as

rais

ed

a v

alid

exp

ect

atio

n in

th

ose

aff

ect

ed

th

at

it w

ill c

arr

y o

ut

the

re

stru

ctu

rin

g b

y st

art

ing

to

imp

lem

en

t th

at

pla

n o

r a

nn

ou

nci

ng

its

ma

in f

ea

ture

s to

th

ose

aff

ect

ed

by

it.

A r

est

ruct

uri

ng

pro

visi

on

incl

ud

es

on

ly t

he

dir

ect

exp

en

ditu

res

ari

sin

g f

rom

th

e r

est

ruct

uri

ng

, w

hic

h a

re t

ho

se t

ha

t a

re b

oth

:

ne

cess

ari

ly e

nta

iled

by

the

re

stru

ctu

rin

g;

an

d

no

t a

sso

cia

ted

with

th

e o

ng

oin

g a

ctiv

itie

s o

f th

e e

ntit

y

No

ob

liga

tion

ari

ses

as

a c

on

seq

ue

nce

of

the

sa

le o

r tr

an

sfe

r o

f a

n o

pe

ratio

n u

ntil

th

e e

ntit

y is

co

mm

itte

d t

o t

he

sa

le o

rtr

an

sfe

r, t

ha

t is

, th

ere

is a

bin

din

g a

rra

ng

em

en

t.

Aft

er

the

ir in

itia

l re

cog

niti

on

co

ntin

ge

nt

liab

ilitie

s re

cog

nis

ed

in e

ntit

y co

mb

ina

tion

s th

at

are

re

cog

nis

ed

se

pa

rate

ly a

resu

bse

qu

en

tly m

ea

sure

d a

t th

e h

igh

er

of:

th

e a

mo

un

t th

at

wo

uld

be

re

cog

nis

ed

as

a p

rovi

sio

n;

an

d

the

am

ou

nt

initi

ally

re

cog

nis

ed

less

cu

mu

lativ

e a

mo

rtis

atio

n.

Co

ntin

ge

nt

ass

ets

an

d c

on

ting

en

t lia

bili

ties

are

no

t re

cog

nis

ed

. C

on

ting

en

cie

s a

re d

iscl

ose

d in

no

te 2

6.

1.1

2C

om

mit

me

nts

Ite

ms

are

cla

ssifi

ed

as

com

mitm

en

ts w

he

n a

n e

ntit

y h

as

com

mitt

ed

itse

lf to

fu

ture

tra

nsa

ctio

ns

tha

t w

ill n

orm

ally

re

sult

in t

he

ou

tflo

w o

f ca

sh.

21


89

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Ac

co

un

tin

g P

oli

cie

s

1.1

1P

rov

isio

ns

an

d c

on

tin

ge

nc

ies

Pro

visi

on

s a

re r

eco

gn

ise

d w

he

n:

th

e e

ntit

y h

as

a p

rese

nt

ob

liga

tion

as

a r

esu

lt o

f a

pa

st e

ven

t;

it is

pro

ba

ble

th

at

an

ou

tflo

w o

f re

sou

rce

s e

mb

od

yin

g e

con

om

ic b

en

efit

s o

r se

rvic

e p

ote

ntia

l will

be

re

qu

ire

d t

ose

ttle

th

e o

blig

atio

n;

an

d

a r

elia

ble

est

ima

te c

an

be

ma

de

of

the

ob

liga

tion

.

Th

e a

mo

un

t o

f a

pro

visi

on

is t

he

be

st e

stim

ate

of

the

exp

en

ditu

re e

xpe

cte

d t

o b

e r

eq

uir

ed

to

se

ttle

th

e p

rese

nt

ob

liga

tion

at

the

rep

ort

ing

da

te.

Wh

ere

th

e e

ffe

ct o

f tim

e v

alu

e o

f m

on

ey

is m

ate

ria

l, th

e a

mo

un

t o

f a

pro

visi

on

is t

he

pre

sen

t va

lue

of

the

exp

en

ditu

res

exp

ect

ed

to

be

re

qu

ire

d t

o s

ett

le t

he

ob

liga

tion

.

Th

e d

isco

un

t ra

te is

a p

re-t

ax

rate

th

at

refle

cts

curr

en

t m

ark

et

ass

ess

me

nts

of

the

tim

e v

alu

e o

f m

on

ey

an

d t

he

ris

ks s

pe

cific

to

the

lia

bili

ty.

Wh

ere

so

me

or

all

of

the

exp

en

ditu

re r

eq

uir

ed

to

se

ttle

a p

rovi

sio

n is

exp

ect

ed

to

be

re

imb

urs

ed

by

an

oth

er

pa

rty,

th

ere

imb

urs

em

en

t is

re

cog

nis

ed

wh

en

, a

nd

on

ly w

he

n,

it is

vir

tua

lly c

ert

ain

th

at

reim

bu

rse

me

nt

will

be

re

ceiv

ed

if t

he

en

tity

sett

les

the

ob

liga

tion

. T

he

re

imb

urs

em

en

t is

tre

ate

d a

s a

se

pa

rate

ass

et.

Th

e a

mo

un

t re

cog

nis

ed

fo

r th

e r

eim

bu

rse

me

nt

do

es

no

te

xce

ed

th

e a

mo

un

t o

f th

e p

rovi

sio

n.

Pro

visi

on

s a

re r

evi

ew

ed

at

ea

ch r

ep

ort

ing

da

te a

nd

ad

just

ed

to

re

flect

th

e c

urr

en

t b

est

est

ima

te.

Pro

visi

on

s a

re r

eve

rse

d if

it is

no

lon

ge

r p

rob

ab

le t

ha

t a

n o

utf

low

of

reso

urc

es

em

bo

dyi

ng

eco

no

mic

be

ne

fits

or

serv

ice

po

ten

tial w

ill b

e r

eq

uir

ed

, to

se

ttle

th

eo

blig

atio

n.

Wh

ere

dis

cou

ntin

g is

use

d,

the

ca

rryi

ng

am

ou

nt

of

a p

rovi

sio

n in

cre

ase

s in

ea

ch p

eri

od

to

re

flect

th

e p

ass

ag

e o

f tim

e.

Th

isin

cre

ase

is r

eco

gn

ise

d a

s a

n in

tere

st e

xpe

nse

.

A p

rovi

sio

n is

use

d o

nly

fo

r e

xpe

nd

iture

s fo

r w

hic

h t

he

pro

visi

on

wa

s o

rig

ina

lly r

eco

gn

ise

d.

Pro

visi

on

s a

re n

ot

reco

gn

ise

d f

or

futu

re o

pe

ratin

g d

efic

its.

If a

n e

ntit

y h

as

a c

on

tra

ct t

ha

t is

on

ero

us,

th

e p

rese

nt

ob

liga

tion

(n

et

of

reco

veri

es)

un

de

r th

e c

on

tra

ct is

re

cog

nis

ed

an

dm

ea

sure

d a

s a

pro

visi

on

.

A c

on

stru

ctiv

e o

blig

atio

n t

o r

est

ruct

ure

ari

ses

on

ly w

he

n a

n e

ntit

y:

ha

s a

de

taile

d f

orm

al p

lan

fo

r th

e r

est

ruct

uri

ng

, id

en

tifyi

ng

at

lea

st:

-th

e a

ctiv

ity/o

pe

ratin

g u

nit

or

pa

rt o

f a

act

ivity

/op

era

ting

un

it co

nce

rne

d;

-th

e e

xpe

nd

iture

s th

at

will

be

un

de

rta

ken

; a

nd

-wh

en

th

e p

lan

will

be

imp

lem

en

ted

; a

nd

h

as

rais

ed

a v

alid

exp

ect

atio

n in

th

ose

aff

ect

ed

th

at

it w

ill c

arr

y o

ut

the

re

stru

ctu

rin

g b

y st

art

ing

to

imp

lem

en

t th

at

pla

n o

r a

nn

ou

nci

ng

its

ma

in f

ea

ture

s to

th

ose

aff

ect

ed

by

it.

A r

est

ruct

uri

ng

pro

visi

on

incl

ud

es

on

ly t

he

dir

ect

exp

en

ditu

res

ari

sin

g f

rom

th

e r

est

ruct

uri

ng

, w

hic

h a

re t

ho

se t

ha

t a

re b

oth

:

ne

cess

ari

ly e

nta

iled

by

the

re

stru

ctu

rin

g;

an

d

no

t a

sso

cia

ted

with

th

e o

ng

oin

g a

ctiv

itie

s o

f th

e e

ntit

y

No

ob

liga

tion

ari

ses

as

a c

on

seq

ue

nce

of

the

sa

le o

r tr

an

sfe

r o

f a

n o

pe

ratio

n u

ntil

th

e e

ntit

y is

co

mm

itte

d t

o t

he

sa

le o

rtr

an

sfe

r, t

ha

t is

, th

ere

is a

bin

din

g a

rra

ng

em

en

t.

Aft

er

the

ir in

itia

l re

cog

niti

on

co

ntin

ge

nt

liab

ilitie

s re

cog

nis

ed

in e

ntit

y co

mb

ina

tion

s th

at

are

re

cog

nis

ed

se

pa

rate

ly a

resu

bse

qu

en

tly m

ea

sure

d a

t th

e h

igh

er

of:

th

e a

mo

un

t th

at

wo

uld

be

re

cog

nis

ed

as

a p

rovi

sio

n;

an

d

the

am

ou

nt

initi

ally

re

cog

nis

ed

less

cu

mu

lativ

e a

mo

rtis

atio

n.

Co

ntin

ge

nt

ass

ets

an

d c

on

ting

en

t lia

bili

ties

are

no

t re

cog

nis

ed

. C

on

ting

en

cie

s a

re d

iscl

ose

d in

no

te 2

6.

1.1

2C

om

mit

me

nts

Ite

ms

are

cla

ssifi

ed

as

com

mitm

en

ts w

he

n a

n e

ntit

y h

as

com

mitt

ed

itse

lf to

fu

ture

tra

nsa

ctio

ns

tha

t w

ill n

orm

ally

re

sult

in t

he

ou

tflo

w o

f ca

sh.

21


90

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Ac

co

un

tin

g P

oli

cie

s

1.1

2C

om

mit

me

nts

(c

on

tin

ue

d)

Dis

clo

sure

s a

re r

eq

uir

ed

in r

esp

ect

of

un

reco

gn

ise

d c

on

tra

ctu

al c

om

mitm

en

ts.

Co

mm

itme

nts

fo

r w

hic

h d

iscl

osu

re is

ne

cess

ary

to

ach

ieve

a f

air

pre

sen

tatio

n s

ho

uld

be

dis

clo

sed

in a

no

te t

o t

he

fin

an

cia

lst

ate

me

nts

, if

bo

th t

he

fo

llow

ing

cri

teri

a a

re m

et:

C

on

tra

cts

sho

uld

be

no

n-c

an

cella

ble

or

on

ly c

an

cella

ble

at

sig

nifi

can

t co

st (

for

exa

mp

le,

con

tra

cts

for

com

pu

ter

or

bu

ildin

g m

ain

ten

an

ce s

erv

ice

s);

an

d

Co

ntr

act

s sh

ou

ld r

ela

te t

o s

om

eth

ing

oth

er

tha

n t

he

ro

utin

e,

ste

ad

y, s

tate

bu

sin

ess

of

the

en

tity

– t

he

refo

re s

ala

ryco

mm

itme

nts

re

latin

g t

o e

mp

loym

en

t co

ntr

act

s o

r so

cia

l se

curi

ty b

en

efit

co

mm

itme

nts

are

exc

lud

ed

.

1.1

3R

ev

en

ue

fro

m e

xc

ha

ng

e t

ran

sa

cti

on

s

Re

ven

ue

is t

he

gro

ss in

flow

of

eco

no

mic

be

ne

fits

or

serv

ice

po

ten

tial d

uri

ng

th

e r

ep

ort

ing

pe

rio

d w

he

n t

ho

se in

flow

s re

sult

in a

nin

cre

ase

in n

et

ass

ets

, o

the

r th

an

incr

ea

ses

rela

ting

to

co

ntr

ibu

tion

s fr

om

ow

ne

rs.

An

exc

ha

ng

e t

ran

sact

ion

is o

ne

in w

hic

h t

he

en

tity

rece

ive

s a

sse

ts o

r se

rvic

es,

or

ha

s lia

bili

ties

ext

ing

uis

he

d,

an

d d

ire

ctly

giv

es

ap

pro

xim

ate

ly e

qu

al v

alu

e (

pri

ma

rily

in t

he

fo

rm o

f g

oo

ds,

se

rvic

es

or

use

of

ass

ets

) to

th

e o

the

r p

art

y in

exc

ha

ng

e.

Fa

ir v

alu

e is

th

e a

mo

un

t fo

r w

hic

h a

n a

sse

t co

uld

be

exc

ha

ng

ed

, o

r a

lia

bili

ty s

ett

led

, b

etw

ee

n k

no

wle

dg

ea

ble

, w

illin

g p

art

ies

ina

n a

rm’s

len

gth

tra

nsa

ctio

n.

Me

as

ure

me

nt

Re

ven

ue

is m

ea

sure

d a

t th

e f

air

va

lue

of

the

co

nsi

de

ratio

n r

ece

ive

d o

r re

ceiv

ab

le,

ne

t o

f tr

ad

e d

isco

un

ts a

nd

vo

lum

e r

eb

ate

s.

Sa

le o

f g

oo

ds

Re

ven

ue

fro

m t

he

sa

le o

f g

oo

ds

is r

eco

gn

ise

d w

he

n a

ll th

e f

ollo

win

g c

on

diti

on

s h

ave

be

en

sa

tisfie

d:

th

e e

ntit

y h

as

tra

nsf

err

ed

to

th

e p

urc

ha

ser

the

sig

nifi

can

t ri

sks

an

d r

ew

ard

s o

f o

wn

ers

hip

of

the

go

od

s;

the

en

tity

reta

ins

ne

ithe

r co

ntin

uin

g m

an

ag

eri

al i

nvo

lve

me

nt

to t

he

de

gre

e u

sua

lly a

sso

cia

ted

with

ow

ne

rsh

ip n

or

eff

ect

ive

co

ntr

ol o

ver

the

go

od

s so

ld;

th

e a

mo

un

t o

f re

ven

ue

ca

n b

e m

ea

sure

d r

elia

bly

;

it is

pro

ba

ble

th

at

the

eco

no

mic

be

ne

fits

or

serv

ice

po

ten

tial a

sso

cia

ted

with

th

e t

ran

sact

ion

will

flo

w t

o t

he

en

tity;

an

d

the

co

sts

incu

rre

d o

r to

be

incu

rre

d in

re

spe

ct o

f th

e t

ran

sact

ion

ca

n b

e m

ea

sure

d r

elia

bly

.

Re

nd

eri

ng

of

se

rvic

es

Wh

en

th

e o

utc

om

e o

f a

tra

nsa

ctio

n in

volv

ing

th

e r

en

de

rin

g o

f se

rvic

es

can

be

est

ima

ted

re

liab

ly,

reve

nu

e a

sso

cia

ted

with

the

tra

nsa

ctio

n is

re

cog

nis

ed

by

refe

ren

ce t

o t

he

sta

ge

of

com

ple

tion

of

the

tra

nsa

ctio

n a

t th

e r

ep

ort

ing

da

te.

Th

e o

utc

om

eo

f a

tra

nsa

ctio

n c

an

be

est

ima

ted

re

liab

ly w

he

n a

ll th

e f

ollo

win

g c

on

diti

on

s a

re s

atis

fied

:

the

am

ou

nt

of

reve

nu

e c

an

be

me

asu

red

re

liab

ly;

it

is p

rob

ab

le t

ha

t th

e e

con

om

ic b

en

efit

s o

r se

rvic

e p

ote

ntia

l ass

oci

ate

d w

ith t

he

tra

nsa

ctio

n w

ill f

low

to

th

e e

ntit

y;

the

sta

ge

of

com

ple

tion

of

the

tra

nsa

ctio

n a

t th

e r

ep

ort

ing

da

te c

an

be

me

asu

red

re

liab

ly;

an

d

the

co

sts

incu

rre

d f

or

the

tra

nsa

ctio

n a

nd

th

e c

ost

s to

co

mp

lete

th

e t

ran

sact

ion

ca

n b

e m

ea

sure

d r

elia

bly

.

Wh

en

se

rvic

es

are

pe

rfo

rme

d b

y a

n in

de

term

ina

te n

um

be

r o

f a

cts

ove

r a

sp

eci

fied

tim

e f

ram

e,

reve

nu

e is

re

cog

nis

ed

on

ast

raig

ht

line

ba

sis

ove

r th

e s

pe

cifie

d t

ime

fra

me

un

less

th

ere

is e

vid

en

ce t

ha

t so

me

oth

er

me

tho

d b

ett

er

rep

rese

nts

th

e s

tag

e o

fco

mp

letio

n.

Wh

en

a s

pe

cific

act

is m

uch

mo

re s

ign

ifica

nt

tha

n a

ny

oth

er

act

s, t

he

re

cog

niti

on

of

reve

nu

e is

po

stp

on

ed

un

til t

he

sig

nifi

can

t a

ct is

exe

cute

d.

Wh

en

th

e o

utc

om

e o

f th

e t

ran

sact

ion

invo

lvin

g t

he

re

nd

eri

ng

of

serv

ice

s ca

nn

ot

be

est

ima

ted

re

liab

ly,

reve

nu

e is

re

cog

nis

ed

on

ly t

o t

he

ext

en

t o

f th

e e

xpe

nse

s re

cog

nis

ed

th

at

are

re

cove

rab

le.

Se

rvic

e r

eve

nu

e is

re

cog

nis

ed

by

refe

ren

ce t

o t

he

sta

ge

of

com

ple

tion

of

the

tra

nsa

ctio

n a

t th

e r

ep

ort

ing

da

te.

Sta

ge

of

com

ple

tion

is d

ete

rmin

ed

by

se

rvic

es

pe

rfo

rme

d t

o d

ate

as

a p

erc

en

tag

e o

f to

tal s

erv

ice

s to

be

pe

rfo

rme

d.

1.1

4R

ev

en

ue

fro

m n

on

-ex

ch

an

ge

tra

ns

ac

tio

ns

Re

ven

ue

co

mp

rise

s g

ross

inflo

ws

of

eco

no

mic

be

ne

fits

or

serv

ice

po

ten

tial r

ece

ive

d a

nd

re

ceiv

ab

le b

y a

n e

ntit

y, w

hic

hre

pre

sen

ts a

n in

cre

ase

in n

et

ass

ets

, o

the

r th

an

incr

ea

ses

rela

ting

to

co

ntr

ibu

tion

s fr

om

ow

ne

rs.

22

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Acco

un

tin

g P

olicie

s

1.1

4R

ev

en

ue

fro

m n

on

-ex

ch

an

ge

tra

ns

ac

tio

ns

(c

on

tin

ue

d)

No

n-e

xch

an

ge

tra

nsa

ctio

ns

are

tra

nsa

ctio

ns

tha

t a

re n

ot

exc

ha

ng

e t

ran

sact

ion

s. I

n a

no

n-e

xch

an

ge

tra

nsa

ctio

n,

an

en

tity

eith

er

rece

ive

s va

lue

fro

m a

no

the

r e

ntit

y w

itho

ut

dir

ect

ly g

ivin

g a

pp

roxi

ma

tely

eq

ua

l va

lue

in e

xch

an

ge

, o

r g

ive

s va

lue

to

an

oth

er

en

tity

with

ou

t d

ire

ctly

re

ceiv

ing

ap

pro

xim

ate

ly e

qu

al v

alu

e in

exc

ha

ng

e.

Tra

nsf

ers

are

inflo

ws

of

futu

re e

con

om

ic b

en

efit

s o

r se

rvic

e p

ote

ntia

l fro

m n

on

-exc

ha

ng

e t

ran

sact

ion

s, o

the

r th

an

ta

xes.

Re

co

gn

itio

n

An

inflo

w o

f re

sou

rce

s fr

om

a n

on

-exc

ha

ng

e t

ran

sact

ion

re

cog

nis

ed

as

an

ass

et

is r

eco

gn

ise

d a

s re

ven

ue

, e

xce

pt

to t

he

ext

en

tth

at

a li

ab

ility

is a

lso

re

cog

nis

ed

in r

esp

ect

of

the

sa

me

inflo

w.

As

the

en

tity

satis

fies

a p

rese

nt

ob

liga

tion

re

cog

nis

ed

as

a li

ab

ility

in r

esp

ect

of

an

inflo

w o

f re

sou

rce

s fr

om

a n

on

-exc

ha

ng

etr

an

sact

ion

re

cog

nis

ed

as

an

ass

et,

it r

ed

uce

s th

e c

arr

yin

g a

mo

un

t o

f th

e li

ab

ility

re

cog

nis

ed

an

d r

eco

gn

ise

s a

n a

mo

un

t o

fre

ven

ue

eq

ua

l to

th

at

red

uct

ion

.

Me

as

ure

me

nt

Re

ven

ue

fro

m a

no

n-e

xch

an

ge

tra

nsa

ctio

n is

me

asu

red

at

the

am

ou

nt

of

the

incr

ea

se in

ne

t a

sse

ts r

eco

gn

ise

d b

y th

e e

ntit

y.

Wh

en

, a

s a

re

sult

of

a n

on

-exc

ha

ng

e t

ran

sact

ion

, th

e e

ntit

y re

cog

nis

es

an

ass

et,

it a

lso

re

cog

nis

es

reve

nu

e e

qu

iva

len

t to

th

ea

mo

un

t o

f th

e a

sse

t m

ea

sure

d a

t its

fa

ir v

alu

e a

s a

t th

e d

ate

of

acq

uis

itio

n,

un

less

it is

als

o r

eq

uir

ed

to

re

cog

nis

e a

lia

bili

ty.

Wh

ere

a li

ab

ility

is r

eq

uir

ed

to

be

re

cog

nis

ed

it w

ill b

e m

ea

sure

d a

s th

e b

est

est

ima

te o

f th

e a

mo

un

t re

qu

ire

d t

o s

ett

le t

he

ob

liga

tion

at

the

re

po

rtin

g d

ate

, a

nd

th

e a

mo

un

t o

f th

e in

cre

ase

in n

et

ass

ets

, if

an

y, r

eco

gn

ise

d a

s re

ven

ue

. W

he

n a

lia

bili

ty is

sub

seq

ue

ntly

re

du

ced

, b

eca

use

th

e t

axa

ble

eve

nt

occ

urs

or

a c

on

diti

on

is s

atis

fied

, th

e a

mo

un

t o

f th

e r

ed

uct

ion

in t

he

lia

bili

ty is

reco

gn

ise

d a

s re

ven

ue

.

Tra

ns

fers

Ap

art

fro

m S

erv

ice

s in

kin

d,

wh

ich

are

no

t re

cog

nis

ed

, th

e e

ntit

y re

cog

nis

es

an

ass

et

in r

esp

ect

of

tra

nsf

ers

wh

en

th

etr

an

sfe

rre

d r

eso

urc

es

me

et

the

de

finiti

on

of

an

ass

et

an

d s

atis

fy t

he

cri

teri

a f

or

reco

gn

itio

n a

s a

n a

sse

t.

The e

ntit

y re

cog

nis

es

an

ass

et

in r

esp

ect

of

tra

nsf

ers

wh

en

th

e t

ran

sfe

rre

d r

eso

urc

es

me

et

the

de

finiti

on

of

an

ass

et

an

d s

atis

fyth

e c

rite

ria

fo

r re

cog

niti

on

as

an

ass

et.

Tra

nsf

err

ed

ass

ets

are

me

asu

red

at

the

ir f

air

va

lue

as

at

the

da

te o

f a

cqu

isiti

on

.

1.1

5B

orr

ow

ing

co

sts

Bo

rro

win

g c

ost

s a

re in

tere

st a

nd

oth

er

exp

en

ses

incu

rre

d b

y a

n e

ntit

y in

co

nn

ect

ion

with

th

e b

orr

ow

ing

of

fun

ds.

Bo

rro

win

g c

ost

s a

re r

eco

gn

ise

d a

s a

n e

xpe

nse

in t

he

pe

rio

d in

wh

ich

th

ey

are

incu

rre

d.

1.1

6F

ruit

les

s a

nd

wa

ste

ful

ex

pe

nd

itu

re

Fru

itle

ss e

xpe

nd

iture

me

an

s e

xpe

nd

iture

wh

ich

wa

s m

ad

e in

va

in a

nd

wo

uld

ha

ve b

ee

n a

void

ed

ha

d r

ea

son

ab

le c

are

be

en

exe

rcis

ed

.

All

exp

en

ditu

re r

ela

ting

to

fru

itle

ss a

nd

wa

ste

ful e

xpe

nd

iture

is r

eco

gn

ise

d a

s a

n e

xpe

nse

in t

he

sta

tem

en

t o

f fin

an

cia

lp

erf

orm

an

ce in

th

e y

ea

r th

at

the

exp

en

ditu

re w

as

incu

rre

d.

Th

e e

xpe

nd

iture

is c

lass

ifie

d in

acc

ord

an

ce w

ith t

he

na

ture

of

the

exp

en

se,

an

d w

he

re r

eco

vere

d,

it is

su

bse

qu

en

tly a

cco

un

ted

fo

r a

s re

ven

ue

in t

he

sta

tem

en

t o

f fin

an

cia

l pe

rfo

rma

nce

.

1.1

7Ir

reg

ula

r e

xp

en

dit

ure

Irre

gu

lar

exp

en

ditu

re a

s d

efin

ed

in s

ect

ion

1 o

f th

e P

FM

A is

exp

en

ditu

re o

the

r th

an

un

au

tho

rise

d e

xpe

nd

iture

, in

curr

ed

inco

ntr

ave

ntio

n o

f o

r th

at

is n

ot

in a

cco

rda

nce

with

a r

eq

uir

em

en

t o

f a

ny

ap

plic

ab

le le

gis

latio

n,

incl

ud

ing

-

(a)

this

Act

; o

r(b

)th

e S

tate

Te

nd

er

Bo

ard

Act

, 1

96

8 (

Act

No

. 8

6 o

f 1

96

8),

or

an

y re

gu

latio

ns

ma

de

in t

erm

s o

f th

e A

ct;

or

(c)

an

y p

rovi

nci

al l

eg

isla

tion

pro

vid

ing

fo

r p

rocu

rem

en

t p

roce

du

res

in t

ha

t p

rovi

nci

al g

ove

rnm

en

t.

Na

tion

al T

rea

sury

pra

ctic

e n

ote

no

. 4

of

20

08

/20

09

wh

ich

wa

s is

sue

d in

te

rms

of

sect

ion

s 7

6(1

) to

76

(4)

of

the

PF

MA

re

qu

ire

sth

e f

ollo

win

g (

eff

ect

ive

fro

m 1

Ap

ril 2

00

8):

23


91

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Acco

un

tin

g P

olicie

s

1.1

4R

ev

en

ue

fro

m n

on

-ex

ch

an

ge

tra

ns

ac

tio

ns

(c

on

tin

ue

d)

No

n-e

xch

an

ge

tra

nsa

ctio

ns

are

tra

nsa

ctio

ns

tha

t a

re n

ot

exc

ha

ng

e t

ran

sact

ion

s. I

n a

no

n-e

xch

an

ge

tra

nsa

ctio

n,

an

en

tity

eith

er

rece

ive

s va

lue

fro

m a

no

the

r e

ntit

y w

itho

ut

dir

ect

ly g

ivin

g a

pp

roxi

ma

tely

eq

ua

l va

lue

in e

xch

an

ge

, o

r g

ive

s va

lue

to

an

oth

er

en

tity

with

ou

t d

ire

ctly

re

ceiv

ing

ap

pro

xim

ate

ly e

qu

al v

alu

e in

exc

ha

ng

e.

Tra

nsf

ers

are

inflo

ws

of

futu

re e

con

om

ic b

en

efit

s o

r se

rvic

e p

ote

ntia

l fro

m n

on

-exc

ha

ng

e t

ran

sact

ion

s, o

the

r th

an

ta

xes.

Re

co

gn

itio

n

An

inflo

w o

f re

sou

rce

s fr

om

a n

on

-exc

ha

ng

e t

ran

sact

ion

re

cog

nis

ed

as

an

ass

et

is r

eco

gn

ise

d a

s re

ven

ue

, e

xce

pt

to t

he

ext

en

tth

at

a li

ab

ility

is a

lso

re

cog

nis

ed

in r

esp

ect

of

the

sa

me

inflo

w.

As

the

en

tity

satis

fies

a p

rese

nt

ob

liga

tion

re

cog

nis

ed

as

a li

ab

ility

in r

esp

ect

of

an

inflo

w o

f re

sou

rce

s fr

om

a n

on

-exc

ha

ng

etr

an

sact

ion

re

cog

nis

ed

as

an

ass

et,

it r

ed

uce

s th

e c

arr

yin

g a

mo

un

t o

f th

e li

ab

ility

re

cog

nis

ed

an

d r

eco

gn

ise

s a

n a

mo

un

t o

fre

ven

ue

eq

ua

l to

th

at

red

uct

ion

.

Me

as

ure

me

nt

Re

ven

ue

fro

m a

no

n-e

xch

an

ge

tra

nsa

ctio

n is

me

asu

red

at

the

am

ou

nt

of

the

incr

ea

se in

ne

t a

sse

ts r

eco

gn

ise

d b

y th

e e

ntit

y.

Wh

en

, a

s a

re

sult

of

a n

on

-exc

ha

ng

e t

ran

sact

ion

, th

e e

ntit

y re

cog

nis

es

an

ass

et,

it a

lso

re

cog

nis

es

reve

nu

e e

qu

iva

len

t to

th

ea

mo

un

t o

f th

e a

sse

t m

ea

sure

d a

t its

fa

ir v

alu

e a

s a

t th

e d

ate

of

acq

uis

itio

n,

un

less

it is

als

o r

eq

uir

ed

to

re

cog

nis

e a

lia

bili

ty.

Wh

ere

a li

ab

ility

is r

eq

uir

ed

to

be

re

cog

nis

ed

it w

ill b

e m

ea

sure

d a

s th

e b

est

est

ima

te o

f th

e a

mo

un

t re

qu

ire

d t

o s

ett

le t

he

ob

liga

tion

at

the

re

po

rtin

g d

ate

, a

nd

th

e a

mo

un

t o

f th

e in

cre

ase

in n

et

ass

ets

, if

an

y, r

eco

gn

ise

d a

s re

ven

ue

. W

he

n a

lia

bili

ty is

sub

seq

ue

ntly

re

du

ced

, b

eca

use

th

e t

axa

ble

eve

nt

occ

urs

or

a c

on

diti

on

is s

atis

fied

, th

e a

mo

un

t o

f th

e r

ed

uct

ion

in t

he

lia

bili

ty is

reco

gn

ise

d a

s re

ven

ue

.

Tra

ns

fers

Ap

art

fro

m S

erv

ice

s in

kin

d,

wh

ich

are

no

t re

cog

nis

ed

, th

e e

ntit

y re

cog

nis

es

an

ass

et

in r

esp

ect

of

tra

nsf

ers

wh

en

th

etr

an

sfe

rre

d r

eso

urc

es

me

et

the

de

finiti

on

of

an

ass

et

an

d s

atis

fy t

he

cri

teri

a f

or

reco

gn

itio

n a

s a

n a

sse

t.

The e

ntit

y re

cog

nis

es

an

ass

et

in r

esp

ect

of

tra

nsf

ers

wh

en

th

e t

ran

sfe

rre

d r

eso

urc

es

me

et

the

de

finiti

on

of

an

ass

et

an

d s

atis

fyth

e c

rite

ria

fo

r re

cog

niti

on

as

an

ass

et.

Tra

nsf

err

ed

ass

ets

are

me

asu

red

at

the

ir f

air

va

lue

as

at

the

da

te o

f a

cqu

isiti

on

.

1.1

5B

orr

ow

ing

co

sts

Bo

rro

win

g c

ost

s a

re in

tere

st a

nd

oth

er

exp

en

ses

incu

rre

d b

y a

n e

ntit

y in

co

nn

ect

ion

with

th

e b

orr

ow

ing

of

fun

ds.

Bo

rro

win

g c

ost

s a

re r

eco

gn

ise

d a

s a

n e

xpe

nse

in t

he

pe

rio

d in

wh

ich

th

ey

are

incu

rre

d.

1.1

6F

ruit

les

s a

nd

wa

ste

ful

ex

pe

nd

itu

re

Fru

itle

ss e

xpe

nd

iture

me

an

s e

xpe

nd

iture

wh

ich

wa

s m

ad

e in

va

in a

nd

wo

uld

ha

ve b

ee

n a

void

ed

ha

d r

ea

son

ab

le c

are

be

en

exe

rcis

ed

.

All

exp

en

ditu

re r

ela

ting

to

fru

itle

ss a

nd

wa

ste

ful e

xpe

nd

iture

is r

eco

gn

ise

d a

s a

n e

xpe

nse

in t

he

sta

tem

en

t o

f fin

an

cia

lp

erf

orm

an

ce in

th

e y

ea

r th

at

the

exp

en

ditu

re w

as

incu

rre

d.

Th

e e

xpe

nd

iture

is c

lass

ifie

d in

acc

ord

an

ce w

ith t

he

na

ture

of

the

exp

en

se,

an

d w

he

re r

eco

vere

d,

it is

su

bse

qu

en

tly a

cco

un

ted

fo

r a

s re

ven

ue

in t

he

sta

tem

en

t o

f fin

an

cia

l pe

rfo

rma

nce

.

1.1

7Ir

reg

ula

r e

xp

en

dit

ure

Irre

gu

lar

exp

en

ditu

re a

s d

efin

ed

in s

ect

ion

1 o

f th

e P

FM

A is

exp

en

ditu

re o

the

r th

an

un

au

tho

rise

d e

xpe

nd

iture

, in

curr

ed

inco

ntr

ave

ntio

n o

f o

r th

at

is n

ot

in a

cco

rda

nce

with

a r

eq

uir

em

en

t o

f a

ny

ap

plic

ab

le le

gis

latio

n,

incl

ud

ing

-

(a)

this

Act

; o

r(b

)th

e S

tate

Te

nd

er

Bo

ard

Act

, 1

96

8 (

Act

No

. 8

6 o

f 1

96

8),

or

an

y re

gu

latio

ns

ma

de

in t

erm

s o

f th

e A

ct;

or

(c)

an

y p

rovi

nci

al l

eg

isla

tion

pro

vid

ing

fo

r p

rocu

rem

en

t p

roce

du

res

in t

ha

t p

rovi

nci

al g

ove

rnm

en

t.

Na

tion

al T

rea

sury

pra

ctic

e n

ote

no

. 4

of

20

08

/20

09

wh

ich

wa

s is

sue

d in

te

rms

of

sect

ion

s 7

6(1

) to

76

(4)

of

the

PF

MA

re

qu

ire

sth

e f

ollo

win

g (

eff

ect

ive

fro

m 1

Ap

ril 2

00

8):

23


92

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Ac

co

un

tin

g P

oli

cie

s

1.1

7Ir

reg

ula

r e

xp

en

dit

ure

(c

on

tin

ue

d)

Irre

gu

lar

exp

en

ditu

re t

ha

t w

as

incu

rre

d a

nd

ide

ntif

ied

du

rin

g t

he

cu

rre

nt

fina

nci

al a

nd

wh

ich

wa

s co

nd

on

ed

be

fore

ye

ar

en

da

nd

/or

be

fore

fin

alis

atio

n o

f th

e f

ina

nci

al s

tate

me

nts

mu

st a

lso

be

re

cord

ed

ap

pro

pri

ate

ly in

th

e ir

reg

ula

r e

xpe

nd

iture

re

gis

ter.

In

such

an

inst

an

ce,

no

fu

rth

er

act

ion

is a

lso

re

qu

ire

d w

ith t

he

exc

ep

tion

of

up

da

ting

th

e n

ote

to

th

e f

ina

nci

al s

tate

me

nts

.

Irre

gu

lar

exp

en

ditu

re t

ha

t w

as

incu

rre

d a

nd

ide

ntif

ied

du

rin

g t

he

cu

rre

nt

fina

nci

al y

ea

r a

nd

fo

r w

hic

h c

on

do

ne

me

nt

is b

ein

ga

wa

ited

at

yea

r e

nd

mu

st b

e r

eco

rde

d in

th

e ir

reg

ula

r e

xpe

nd

iture

re

gis

ter.

No

fu

rth

er

act

ion

is r

eq

uir

ed

with

th

e e

xce

ptio

n o

fu

pd

atin

g t

he

no

te t

o t

he

fin

an

cia

l sta

tem

en

ts.

Wh

ere

irre

gu

lar

exp

en

ditu

re w

as

incu

rre

d in

th

e p

revi

ou

s fin

an

cia

l ye

ar

an

d is

on

ly c

on

do

ne

d in

th

e f

ollo

win

g f

ina

nci

al y

ea

r, t

he

reg

iste

r a

nd

th

e d

iscl

osu

re n

ote

to

th

e f

ina

nci

al s

tate

me

nts

mu

st b

e u

pd

ate

d w

ith t

he

am

ou

nt

con

do

ne

d.

Irre

gu

lar

exp

en

ditu

re t

ha

t w

as

incu

rre

d a

nd

ide

ntif

ied

du

rin

g t

he

cu

rre

nt

fina

nci

al y

ea

r a

nd

wh

ich

wa

s n

ot

con

do

ne

d b

y th

eN

atio

na

l Tre

asu

ry o

r th

e r

ele

van

t a

uth

ori

ty m

ust

be

re

cord

ed

ap

pro

pri

ate

ly in

th

e ir

reg

ula

r e

xpe

nd

iture

re

gis

ter.

If

liab

ility

fo

r th

eir

reg

ula

r e

xpe

nd

iture

ca

n b

e a

ttri

bu

ted

to

a p

ers

on

, a

de

bt

acc

ou

nt

mu

st b

e c

rea

ted

if s

uch

a p

ers

on

is li

ab

le in

law

. Im

me

dia

test

ep

s m

ust

th

ere

aft

er

be

ta

ken

to

re

cove

r th

e a

mo

un

t fr

om

th

e p

ers

on

co

nce

rne

d.

If r

eco

very

is n

ot

po

ssib

le,

the

acc

ou

ntin

go

ffic

er

or

acc

ou

ntin

g a

uth

ori

ty m

ay

wri

te o

ff t

he

am

ou

nt

as

de

bt

imp

air

me

nt

an

d d

iscl

ose

su

ch in

th

e r

ele

van

t n

ote

to

th

efin

an

cia

l sta

tem

en

ts.

Th

e ir

reg

ula

r e

xpe

nd

iture

re

gis

ter

mu

st a

lso

be

up

da

ted

acc

ord

ing

ly.

If t

he

irre

gu

lar

exp

en

ditu

re h

as

no

tb

ee

n c

on

do

ne

d a

nd

no

pe

rso

n is

lia

ble

in la

w,

the

exp

en

ditu

re r

ela

ted

th

ere

to m

ust

re

ma

in a

ga

inst

th

e r

ele

van

tp

rog

ram

me

/exp

en

ditu

re it

em

, b

e d

iscl

ose

d a

s su

ch in

th

e n

ote

to

th

e f

ina

nci

al s

tate

me

nts

an

d u

pd

ate

d a

cco

rdin

gly

in t

he

irre

gu

lar

exp

en

ditu

re r

eg

iste

r.

1.1

8B

ud

ge

t in

form

ati

on

En

titie

s a

re t

ypic

ally

su

bje

ct t

o b

ud

ge

tary

lim

its in

th

e f

orm

of

ap

pro

pri

atio

ns

or

bu

dg

et

au

tho

risa

tion

s (o

r e

qu

iva

len

t),

wh

ich

isg

ive

n e

ffe

ct t

hro

ug

h a

uth

ori

sin

g le

gis

latio

n,

ap

pro

pri

atio

n o

r si

mila

r.

Ge

ne

ral p

urp

ose

fin

an

cia

l re

po

rtin

g b

y e

ntit

y sh

all

pro

vid

e in

form

atio

n o

n w

he

the

r re

sou

rce

s w

ere

ob

tain

ed

an

d u

sed

ina

cco

rda

nce

with

th

e le

ga

lly a

do

pte

d b

ud

ge

t.

The a

nn

ua

l fin

an

cia

l sta

tem

en

ts a

nd

th

e b

ud

ge

t a

re n

ot

on

th

e s

am

e b

asi

s o

f a

cco

un

ting

. T

he

act

ua

l fin

an

cia

l sta

tem

en

tin

form

atio

n is

th

ere

fore

pre

sen

ted

on

co

mp

ara

ble

ba

sis

to t

he

bu

dg

et

info

rma

tion

. T

he

co

mp

ari

son

an

d t

he

re

con

cilia

tion

be

twe

en

th

e s

tate

me

nt

of

fina

nci

al p

erf

orm

an

ce a

nd

th

e b

ud

ge

t fo

r th

e r

ep

ort

ing

pe

rio

d h

ave

be

en

incl

ud

ed

in t

he

Sta

tem

en

t o

fco

mp

ari

son

of

bu

dg

et

an

d a

ctu

al a

mo

un

ts.

1.1

9R

ela

ted

pa

rtie

s

The e

ntit

y o

pe

rate

s in

an

eco

no

mic

se

cto

r cu

rre

ntly

do

min

ate

d b

y e

ntit

ies

dir

ect

ly o

r in

dir

ect

ly o

wn

ed

by

the

So

uth

Afr

ica

nG

ove

rnm

en

t. A

s a

co

nse

qu

en

ce o

f th

e c

on

stitu

tion

al i

nd

ep

en

de

nce

of

the

th

ree

sp

he

res

of

go

vern

me

nt

in S

ou

th A

fric

a,

on

lye

ntit

ies

with

in t

he

na

tion

al s

ph

ere

of

go

vern

me

nt

are

co

nsi

de

red

to

be

re

late

d p

art

ies.

Ma

na

ge

me

nt

are

th

ose

pe

rso

ns

resp

on

sib

le f

or

pla

nn

ing

, d

ire

ctin

g a

nd

co

ntr

olli

ng

th

e a

ctiv

itie

s o

f th

e e

ntit

y, in

clu

din

g t

ho

sech

arg

ed

with

th

e g

ove

rna

nce

of

the

en

tity

in a

cco

rda

nce

with

leg

isla

tion

, in

inst

an

ces

wh

ere

th

ey

are

re

qu

ire

d t

o p

erf

orm

su

chfu

nct

ion

s.

Clo

se m

em

be

rs o

f th

e f

am

ily o

f a

pe

rso

n a

re c

on

sid

ere

d t

o b

e t

ho

se f

am

ily m

em

be

rs w

ho

ma

y b

e e

xpe

cte

d t

o in

flue

nce

, o

r b

ein

flue

nce

d b

y, t

ha

t m

an

ag

em

en

t in

th

eir

de

alin

gs

with

th

e e

ntit

y.

On

ly t

ran

sact

ion

s w

ith r

ela

ted

pa

rtie

s n

ot

at

arm

’s le

ng

th o

r n

ot

in t

he

ord

ina

ry c

ou

rse

of

bu

sin

ess

are

dis

clo

sed

.

1.2

0E

ve

nts

aft

er

rep

ort

ing

da

te

Eve

nts

aft

er

rep

ort

ing

da

te a

re t

ho

se e

ven

ts,

bo

th f

avo

ura

ble

an

d u

nfa

vou

rab

le,

tha

t o

ccu

r b

etw

ee

n t

he

re

po

rtin

g d

ate

an

d t

he

da

te w

he

n t

he

fin

an

cia

l sta

tem

en

ts a

re a

uth

ori

sed

fo

r is

sue

. T

wo

typ

es

of

eve

nts

ca

n b

e id

en

tifie

d:

th

ose

th

at

pro

vid

e e

vid

en

ce o

f co

nd

itio

ns

tha

t e

xist

ed

at

the

re

po

rtin

g d

ate

(a

dju

stin

g e

ven

ts a

fte

r th

e r

ep

ort

ing

da

te);

an

d

tho

se t

ha

t a

re in

dic

ativ

e o

f co

nd

itio

ns

tha

t a

rose

aft

er

the

re

po

rtin

g d

ate

(n

on

-ad

just

ing

eve

nts

aft

er

the

re

po

rtin

gd

ate

).

The e

ntit

y w

ill a

dju

st t

he

am

ou

nt

reco

gn

ise

d in

th

e f

ina

nci

al s

tate

me

nts

to

re

flect

ad

just

ing

eve

nts

aft

er

the

re

po

rtin

g d

ate

on

ceth

e e

ven

t o

ccu

rre

d.

24

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Ac

co

un

tin

g P

oli

cie

s

1.2

0E

ve

nts

aft

er

rep

ort

ing

da

te (

co

nti

nu

ed

)

The e

ntit

y w

ill d

iscl

ose

th

e n

atu

re o

f th

e e

ven

t a

nd

an

est

ima

te o

f its

fin

an

cia

l eff

ect

or

a s

tate

me

nt

tha

t su

ch e

stim

ate

ca

nn

ot

be

ma

de

in r

esp

ect

of

all

ma

teri

al n

on

-ad

just

ing

eve

nts

, w

he

re n

on

-dis

clo

sure

co

uld

influ

en

ce t

he

eco

no

mic

de

cisi

on

s o

f u

sers

take

n o

n t

he

ba

sis

of

the

fin

an

cia

l sta

tem

en

ts.

25


93

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

Ac

co

un

tin

g P

oli

cie

s

1.2

0E

ve

nts

aft

er

rep

ort

ing

da

te (

co

nti

nu

ed

)

The e

ntit

y w

ill d

iscl

ose

th

e n

atu

re o

f th

e e

ven

t a

nd

an

est

ima

te o

f its

fin

an

cia

l eff

ect

or

a s

tate

me

nt

tha

t su

ch e

stim

ate

ca

nn

ot

be

ma

de

in r

esp

ect

of

all

ma

teri

al n

on

-ad

just

ing

eve

nts

, w

he

re n

on

-dis

clo

sure

co

uld

influ

en

ce t

he

eco

no

mic

de

cisi

on

s o

f u

sers

take

n o

n t

he

ba

sis

of

the

fin

an

cia

l sta

tem

en

ts.

25


94

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

No

tes

to

th

e A

nn

ua

l F

ina

nc

ial

Sta

tem

en

ts

2.

Ne

w s

tan

da

rds

an

d i

nte

rpre

tati

on

s

2.1

Sta

nd

ard

s a

nd

in

terp

reta

tio

ns

eff

ec

tiv

e a

nd

ad

op

ted

in

th

e c

urr

en

t ye

ar

In t

he

cu

rre

nt

yea

r, t

he

en

tity

ha

s a

do

pte

d t

he

fo

llow

ing

sta

nd

ard

s a

nd

inte

rpre

tatio

ns

tha

t a

re e

ffe

ctiv

e f

or

the

cu

rre

nt

fina

nci

al y

ea

r a

nd

th

at

are

re

leva

nt

to it

s o

pe

ratio

ns:

GR

AP

17

(a

s a

me

nd

ed

20

15

): P

rop

ert

y, P

lan

t a

nd

Eq

uip

me

nt

Ba

sed

on

th

e f

ee

db

ack

re

ceiv

ed

as

pa

rt o

f th

e p

ost

-im

ple

me

nta

tion

re

vie

w,

the

Bo

ard

ag

ree

d t

o r

eco

nsi

de

r ce

rta

inp

rin

cip

les

in G

RA

P 1

6 a

nd

GR

AP

17

. In

pa

rtic

ula

r, t

he

Bo

ard

ag

ree

d t

o:

C

on

sid

er

wh

eth

er

an

ind

ica

tor-

ba

sed

ass

ess

me

nt

of

use

ful l

ive

s o

f a

sse

ts c

ou

ld b

e in

tro

du

ced

.

Cla

rify

th

e w

ord

ing

re

late

d t

o t

he

use

of

ext

ern

al v

alu

ers

.

Intr

od

uce

mo

re s

pe

cific

pre

sen

tatio

n a

nd

dis

clo

sure

re

qu

ire

me

nts

fo

r ca

pita

l wo

rk-i

n-p

rog

ress

.

Re

vie

w t

he

en

cou

rag

ed

dis

clo

sure

s a

nd

ass

ess

wh

eth

er

an

y sh

ou

ld b

e m

ad

e m

an

da

tory

or

de

lete

d.

R

eq

uir

e s

ep

ara

te p

rese

nta

tion

of

exp

en

ditu

re in

curr

ed

on

re

pa

irs

an

d m

ain

ten

an

ce in

th

e f

ina

nci

al s

tate

me

nts

.

Th

e e

ffe

ctiv

e d

ate

of

the

sta

nd

ard

is f

or

yea

rs b

eg

inn

ing

on

or

aft

er

01

Ap

ril 2

01

6.

The e

ntit

yh

as

ad

op

ted

th

e s

tan

da

rd f

or

the

fir

st t

ime

in t

he

20

17

an

nu

al f

ina

nci

al s

tate

me

nts

.

2.2

Sta

nd

ard

s a

nd

in

terp

reta

tio

ns

is

su

ed

, b

ut

no

t ye

t e

ffe

cti

ve

The e

ntit

y h

as

no

t a

pp

lied

th

e f

ollo

win

g s

tan

da

rds

an

d in

terp

reta

tion

s, w

hic

h h

ave

be

en

pu

blis

he

d a

nd

are

ma

nd

ato

ry f

or

the

en

tity’

s a

cco

un

ting

pe

rio

ds

be

gin

nin

g o

n o

r a

fte

r 0

1 A

pri

l 20

17

or

late

r p

eri

od

s:

Sta

nd

ard

/ In

terp

reta

tio

n:

Eff

ec

tiv

e d

ate

:Y

ea

rs b

eg

inn

ing

on

or

aft

er

Ex

pe

cte

d i

mp

ac

t:

G

RA

P 1

8:

Se

gm

en

t R

ep

ort

ing

01

Ap

ril 2

01

7T

he

ad

op

tion

of

this

am

en

dm

en

t is

no

te

xpe

cte

d t

o h

ave

am

ate

ria

l im

pa

ct o

n t

he

dis

clo

sure

ad

op

ted

by

the

en

tity.

G

RA

P 2

0:

Re

late

d p

art

ies

01

Ap

ril 2

01

7

GR

AP

21

(a

s a

me

nd

ed

20

15

): I

mp

air

me

nt

of

no

n-c

ash

-g

en

era

ting

ass

ets

01

Ap

ril 2

01

7

GR

AP

108:

Sta

tuto

ry R

ec

eiv

ab

les

Th

e o

bje

ctiv

e o

f th

is S

tan

da

rd is

: to

pre

scri

be

acc

ou

ntin

g r

eq

uir

em

en

ts f

or

the

re

cog

niti

on

, m

ea

sure

me

nt,

pre

sen

tatio

n a

nd

dis

clo

sure

of

sta

tuto

ry r

ece

iva

ble

s.

It f

urt

he

rmo

re c

ove

rs:

De

finiti

on

s, r

eco

gn

itio

n,

de

reco

gn

itio

n,

me

asu

rem

en

t, p

rese

nta

tion

an

d d

iscl

osu

re,

tra

nsi

tion

al

pro

visi

on

s, a

s w

ell

as

the

eff

ect

ive

da

te.

Th

e e

ffe

ctiv

e d

ate

of

the

sta

nd

ard

is n

ot

yet

set

by

the

Min

iste

r o

f F

ina

nce

.

The e

ntit

ye

xpe

cts

to a

do

pt

the

sta

nd

ard

fo

r th

e f

irst

tim

e w

he

n t

he

Min

iste

r se

ts t

he

eff

ect

ive

da

te f

or

the

sta

nd

ard

.

26

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00

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2,6

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27


96


Notes to the Annual Financial StatementsFigures in Rand

3. Property, plant and equipment (continued)

Reconciliation of property, plant and equipment - 2017

Openingbalance

Additions Disposal/writeoffs

Transfers Impairmentloss

Depreciation Total

Leasehold property 14,011,701 - - - - (3,670,439) 10,341,262Plant and machinery 3,630,549 - - (3,610,259) - (4,156) 16,134Furniture and fixtures 2,989,700 1,399 (3,716) (2,039,793) (25,877) (154,783) 766,930Motor vehicles 2,749,078 - - (2,437,233) - (30,721) 281,124Office equipment 1,317,387 38,176 (12,484) (696,688) (11,576) (98,065) 536,750IT equipment 1,521,442 100,721 (21,086) (538,305) (57,493) (184,377) 820,902Mobile offices 1,157,625 - - (1,116,563) - (8,802) 32,260Capital work in progress 92,717,731 - - (92,717,731) - - -Communication equipment 137,297 - (1,635) (113,205) - (13,864) 8,593Water network 540,162 - - (534,688) - (1,882) 3,592

120,772,672 140,296 (38,921) (103,804,465) (94,946) (4,167,089) 12,807,547

28





Openingbalance

Additions Impairmentloss

Writeoffs/scrapping

Depreciation Total

Leasehold property 17,682,141 - - - (3,670,440) 14,011,701Plant and machinery 3,858,618 225,737 (22,805) (80,030) (350,971) 3,630,549Furniture and fixtures 3,502,002 11,985 (25,228) (21,058) (478,001) 2,989,700Motor vehicles 3,105,109 - - - (356,031) 2,749,078Office equipment 1,211,123 336,426 (16,638) - (213,524) 1,317,387IT equipment 1,570,205 408,845 (124,096) (43,423) (290,089) 1,521,442Mobile offices 1,320,839 - - - (163,214) 1,157,625Capital work in progress 38,616,422 54,101,309 - - - 92,717,731Communication equipment 188,456 2,993 - - (54,152) 137,297Water network 498,744 173,967 (37,688) (19,566) (75,295) 540,162

71,553,659 55,261,262 (226,455) (164,077) (5,651,717) 120,772,672

29


97





Openingbalance

Additions Impairmentloss

Writeoffs/scrapping

Depreciation Total

Leasehold property 17,682,141 - - - (3,670,440) 14,011,701Plant and machinery 3,858,618 225,737 (22,805) (80,030) (350,971) 3,630,549Furniture and fixtures 3,502,002 11,985 (25,228) (21,058) (478,001) 2,989,700Motor vehicles 3,105,109 - - - (356,031) 2,749,078Office equipment 1,211,123 336,426 (16,638) - (213,524) 1,317,387IT equipment 1,570,205 408,845 (124,096) (43,423) (290,089) 1,521,442Mobile offices 1,320,839 - - - (163,214) 1,157,625Capital work in progress 38,616,422 54,101,309 - - - 92,717,731Communication equipment 188,456 2,993 - - (54,152) 137,297Water network 498,744 173,967 (37,688) (19,566) (75,295) 540,162

71,553,659 55,261,262 (226,455) (164,077) (5,651,717) 120,772,672

29


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tili

se

dd

uri

ng

th

eye

ar

To

tal

Pro

visi

on

fo

r lo

ng

se

rvic

e2

,10

3,0

00

33

2,9

78

(37

9,9

78

)2

,05

6,0

00

No

n-c

urr

en

t lia

bili

ties

24

4,4

55

1,5

92

,00

0C

urr

en

t lia

bili

ties

10

8,4

66

46

4,0

00

35

2,9

21

2,0

56

,00

0

Th

e lo

ng

se

rvic

e a

wa

rds

an

d le

ave

pro

visi

on

re

pre

sen

ts e

stim

ate

s o

f th

e e

ntit

y's

liab

ility

as

valu

ed

by

pro

fess

ion

al v

alu

ers

with

an

eff

ect

ve v

alu

atio

n d

ate

of

31

Ma

rch

20

17

.

The e

ntit

y va

lue

s lo

ng

se

rvic

e a

wa

rds

an

d le

ave

acc

rua

ls a

nn

ua

lly u

sin

g a

pro

fess

ion

al v

alu

er.

On

e P

an

ga

ea

Fin

an

cia

l ha

sb

ee

n a

pp

oin

ted

to

est

ima

te t

he

pre

sen

t va

lue

of

lon

g s

erv

ice

aw

ard

s a

nd

lea

ve a

ccru

als

in t

he

fin

an

cia

l ye

ar

un

de

r re

vie

w.

Me

thod

olo

gy:

Th

e p

roje

cte

d u

nit

cre

dit

fun

din

g o

f m

eth

od

ha

s b

ee

n a

pp

lied

to

de

term

ine

th

e p

rese

nt

valu

e o

f th

e lo

ng

se

rvic

e a

wa

rds

liab

ility

an

d t

he

re

late

d c

urr

en

t se

rvic

e c

ost

an

d in

tere

st.

Th

e le

ave

acc

rua

l lia

bili

ties

ha

ve b

ee

n v

alu

ed

on

a s

imila

r m

eth

od

, a

ltho

ug

h b

en

efit

s a

re f

ully

acc

rue

d a

t th

e v

alu

atio

n d

ate

.

Ke

y a

ssu

mp

tion

s:

Th

e a

ssu

mp

tion

s u

sed

as

at

31

Ma

rch

20

17

are

ba

sed

on

th

e f

ollo

win

g f

act

ors

:

31

Ma

rch

20

17

31

Ma

rch

20

16

Co

nsu

me

r p

rice

ind

ex

(CP

I).

6.2

9%

6.8

8%

Sa

lary

infla

tion

.7

.29

%7

.88

%D

isco

un

t ra

te.

9.0

9%

9.3

3%

Ne

t d

isco

un

t ra

te (

CP

I).

2.6

3%

2.2

9%

Ne

t d

isco

un

t ra

te (

sala

ry).

1.6

8%

1.3

4%

Mort

alit

y.

69

.21

% o

f S

A8

5-9

0 (

ligh

t)

69

.21

% o

f S

A8

5-9

0 (

ligh

t)N

orm

al r

etir

em

en

t a

ge

.

65

6

5

Th

e m

eth

od

olo

gy

of

sett

ing

th

e f

ina

nci

al a

ssu

mp

tion

ha

s b

ee

n u

pd

ate

d t

o b

e m

ore

du

ratio

n s

pe

cific

. A

t th

e p

revi

ou

s va

lua

tion

da

te,

31

Ma

rch

20

16

, th

e d

ura

tion

lia

bili

ties

we

re 9

.48

ye

ars

. A

t th

is d

ura

tion

th

e d

isco

un

t ra

te d

ete

rmin

ed

by

usi

ng

th

e B

on

dE

xch

an

ge

Ze

ro C

ou

po

n Y

ield

Cu

rve

an

d a

s a

t 3

1 M

arc

h 2

01

7 t

he

du

ratio

n li

ab

ilitie

s is

9.0

9%

pe

r a

nn

um

. T

he

ass

um

ed

dis

cou

nt

rate

use

d a

t th

e p

revi

ou

s va

lua

tion

31

Ma

rch

20

16

, w

as

9.3

3%

pe

r a

nn

um

.

Th

e d

ura

tion

of

liab

ilitie

s w

as

est

ima

ted

to

be

9.4

8 y

ea

rs a

t th

e p

revi

ou

s va

lua

tion

da

te o

f 3

1 M

arc

h 2

01

6.

At

31

Ma

rch

20

17

the

yie

ld o

n in

flatio

n-l

inke

d b

on

ds

of

sim

ilar

term

wa

s a

bo

ut

2.1

6%

pe

r a

nn

um

. T

his

imp

lies

an

un

de

rlyi

ng

exp

ect

atio

n o

fin

flatio

n o

f 6

.29

% p

er

an

nu

m.

Ho

we

ver,

it is

th

e r

ela

tive

leve

ls o

f th

e d

isco

un

t ra

te a

nd

sa

lary

infla

tion

to

on

e a

no

the

r th

at

are

imp

ort

an

t ra

the

r th

an

th

en

om

ina

l va

lue

s. I

t is

ass

um

ed

th

at

the

sa

lary

infla

tion

wo

uld

exc

ee

d g

en

era

l in

flatio

n b

y 1

.0%

pe

r a

nn

um

, i.e

. 7

.29

% p

er

an

nu

m.

33


101

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

No

tes t

o t

he A

nn

ual F

inan

cia

l S

tate

men

tsF

igu

res

in R

an

d2

01

72

01

6

11

.P

rov

isio

ns

Re

co

nc

ilia

tio

n o

f p

rov

isio

ns

- 2

01

7

Op

en

ing

Ba

lan

ce

Pro

vis

ion

ad

jus

tme

nt

Uti

lis

ed

du

rin

g t

he

yea

r

To

tal

Pro

visi

on

fo

r lo

ng

se

rvic

e2

,05

6,0

00

(1,6

00

,04

8)

(10

3,0

31

)3

52

,92

1

Re

co

nc

ilia

tio

n o

f p

rov

isio

ns

- 2

01

6

Op

en

ing

Ba

lan

ce

Ad

dit

ion

sU

tili

se

dd

uri

ng

th

eye

ar

To

tal

Pro

visi

on

fo

r lo

ng

se

rvic

e2

,10

3,0

00

33

2,9

78

(37

9,9

78

)2

,05

6,0

00

No

n-c

urr

en

t lia

bili

ties

24

4,4

55

1,5

92

,00

0C

urr

en

t lia

bili

ties

10

8,4

66

46

4,0

00

35

2,9

21

2,0

56

,00

0

Th

e lo

ng

se

rvic

e a

wa

rds

an

d le

ave

pro

visi

on

re

pre

sen

ts e

stim

ate

s o

f th

e e

ntit

y's

liab

ility

as

valu

ed

by

pro

fess

ion

al v

alu

ers

with

an

eff

ect

ve v

alu

atio

n d

ate

of

31

Ma

rch

20

17

.

The e

ntit

y va

lue

s lo

ng

se

rvic

e a

wa

rds

an

d le

ave

acc

rua

ls a

nn

ua

lly u

sin

g a

pro

fess

ion

al v

alu

er.

On

e P

an

ga

ea

Fin

an

cia

l ha

sb

ee

n a

pp

oin

ted

to

est

ima

te t

he

pre

sen

t va

lue

of

lon

g s

erv

ice

aw

ard

s a

nd

lea

ve a

ccru

als

in t

he

fin

an

cia

l ye

ar

un

de

r re

vie

w.

Me

thod

olo

gy:

Th

e p

roje

cte

d u

nit

cre

dit

fun

din

g o

f m

eth

od

ha

s b

ee

n a

pp

lied

to

de

term

ine

th

e p

rese

nt

valu

e o

f th

e lo

ng

se

rvic

e a

wa

rds

liab

ility

an

d t

he

re

late

d c

urr

en

t se

rvic

e c

ost

an

d in

tere

st.

Th

e le

ave

acc

rua

l lia

bili

ties

ha

ve b

ee

n v

alu

ed

on

a s

imila

r m

eth

od

, a

ltho

ug

h b

en

efit

s a

re f

ully

acc

rue

d a

t th

e v

alu

atio

n d

ate

.

Ke

y a

ssu

mp

tion

s:

Th

e a

ssu

mp

tion

s u

sed

as

at

31

Ma

rch

20

17

are

ba

sed

on

th

e f

ollo

win

g f

act

ors

:

31

Ma

rch

20

17

31

Ma

rch

20

16

Co

nsu

me

r p

rice

ind

ex

(CP

I).

6.2

9%

6.8

8%

Sa

lary

infla

tion

.7

.29

%7

.88

%D

isco

un

t ra

te.

9.0

9%

9.3

3%

Ne

t d

isco

un

t ra

te (

CP

I).

2.6

3%

2.2

9%

Ne

t d

isco

un

t ra

te (

sala

ry).

1.6

8%

1.3

4%

Mort

alit

y.

69

.21

% o

f S

A8

5-9

0 (

ligh

t)

69

.21

% o

f S

A8

5-9

0 (

ligh

t)N

orm

al r

etir

em

en

t a

ge

.

65

6

5

Th

e m

eth

od

olo

gy

of

sett

ing

th

e f

ina

nci

al a

ssu

mp

tion

ha

s b

ee

n u

pd

ate

d t

o b

e m

ore

du

ratio

n s

pe

cific

. A

t th

e p

revi

ou

s va

lua

tion

da

te,

31

Ma

rch

20

16

, th

e d

ura

tion

lia

bili

ties

we

re 9

.48

ye

ars

. A

t th

is d

ura

tion

th

e d

isco

un

t ra

te d

ete

rmin

ed

by

usi

ng

th

e B

on

dE

xch

an

ge

Ze

ro C

ou

po

n Y

ield

Cu

rve

an

d a

s a

t 3

1 M

arc

h 2

01

7 t

he

du

ratio

n li

ab

ilitie

s is

9.0

9%

pe

r a

nn

um

. T

he

ass

um

ed

dis

cou

nt

rate

use

d a

t th

e p

revi

ou

s va

lua

tion

31

Ma

rch

20

16

, w

as

9.3

3%

pe

r a

nn

um

.

Th

e d

ura

tion

of

liab

ilitie

s w

as

est

ima

ted

to

be

9.4

8 y

ea

rs a

t th

e p

revi

ou

s va

lua

tion

da

te o

f 3

1 M

arc

h 2

01

6.

At

31

Ma

rch

20

17

the

yie

ld o

n in

flatio

n-l

inke

d b

on

ds

of

sim

ilar

term

wa

s a

bo

ut

2.1

6%

pe

r a

nn

um

. T

his

imp

lies

an

un

de

rlyi

ng

exp

ect

atio

n o

fin

flatio

n o

f 6

.29

% p

er

an

nu

m.

Ho

we

ver,

it is

th

e r

ela

tive

leve

ls o

f th

e d

isco

un

t ra

te a

nd

sa

lary

infla

tion

to

on

e a

no

the

r th

at

are

imp

ort

an

t ra

the

r th

an

th

en

om

ina

l va

lue

s. I

t is

ass

um

ed

th

at

the

sa

lary

infla

tion

wo

uld

exc

ee

d g

en

era

l in

flatio

n b

y 1

.0%

pe

r a

nn

um

, i.e

. 7

.29

% p

er

an

nu

m.

33


102

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

No

tes t

o t

he A

nn

ual F

inan

cia

l S

tate

men

tsF

igu

res

in R

an

d2

01

72

01

6

11

.P

rov

isio

ns

(c

on

tin

ue

d)

Ho

we

ver,

it is

th

e r

ela

tive

leve

ls o

f th

e d

isco

un

t ra

te a

nd

sa

lary

infla

tion

, th

e d

isco

un

t ra

te a

nd

CP

I, t

o o

ne

an

oth

er

tha

t a

reim

po

rta

nt

rath

er

tha

n t

he

no

min

al v

alu

es.

It

thu

s a

ssu

me

d a

dis

cou

nt

fact

or

(sa

lary

infla

tion

) o

f 1

.68

% p

er

an

nu

m a

nd

ne

td

isco

un

t fa

cto

r (C

PI)

of

2.6

3%

pe

r a

nn

um

.

Se

nse

tivity

an

aly

sis

Th

e v

alu

atio

n b

ase

s a

ssu

me

th

at

the

sa

lary

infla

tion

ra

te (

wh

ich

ma

nife

sts

itse

lf a

s th

e a

nn

ua

l in

cre

ase

in e

mp

loye

es'

sala

rie

sw

hic

h d

ete

rmin

e t

he

lea

ve a

ccru

al p

aya

ble

) w

ill b

e 1

.68

% le

ss t

ha

n t

he

co

rre

spo

nd

ing

dis

cou

nt

rate

in t

he

lon

g t

erm

.If

a 1

% in

cre

ase

in t

he

sa

lary

co

st in

flatio

n a

ssu

mp

tion

will

re

sult

rou

gh

ly a

15

.4%

incr

ea

se in

th

e a

ccru

ed

lia

bili

ty.

Sim

ilarl

y, a

1%

de

cre

ase

in t

he

sa

lary

infla

tion

ass

um

ptio

n w

ill r

esu

lt in

ro

ug

hly

a 1

3.0

% d

ecr

ea

se in

th

e a

ccru

ed

lia

bili

ty.

12

.D

efe

rre

d i

nc

om

e -

Infr

as

tru

ctu

re

Mo

ve

me

nt

du

rin

g t

he

ye

ar

Ba

lan

ce a

t th

e b

eg

inn

ing

of

the

ye

ar

10

,58

6,7

17

14

,76

8,5

49

Am

ou

nt

surr

en

de

red

to

Pro

vin

cia

l Tre

asu

ry(1

0,5

86

,71

7)

(14

,76

8,5

49

)G

ran

t re

ceiv

ed

du

rin

g t

he

ye

ar

-6

5,7

16

,00

0L

ess

exp

en

ditu

re-r

eve

nu

e e

nh

an

cem

en

t-

(5,0

16

,23

7)

Le

ss -

op

era

tion

al e

xpe

nd

iture

-In

fra

stru

ctu

re-

(7,0

04

,14

8)

Le

ss -

cap

ital e

xpe

nd

iture

-In

fra

stru

ctu

re-

(43

,10

8,8

98

)

-1

0,5

86

,71

7

Th

e d

efe

rre

d in

com

e-i

nfr

ast

ruct

ure

is a

co

nd

itio

na

l gra

nt

rece

ive

d f

or

the

up

gra

din

g o

f re

sort

s. T

he

gra

nt

is in

itia

lly r

eco

gn

ise

da

s a

lia

bili

ty in

th

e s

tate

me

nt

of

fina

nci

al p

osi

tion

an

d s

ub

seq

ue

ntly

as

reve

nu

e w

he

n e

xpe

nse

d in

th

e s

tate

me

nt

of

fina

nci

al

pe

rfo

rma

nce

.

13

.P

aya

ble

s f

rom

ex

ch

an

ge

tra

ns

ac

tio

ns

Tra

de

pa

yab

les

3,7

68

,20

89

,11

2,4

21

Re

ten

tion

-4

,66

7,4

18

Wo

rkm

an

s co

mp

en

satio

n2

91

,41

52

92

,84

6S

taff

S&

T C

on

tro

l Acc

ou

nt

46

,45

97

6,4

56

Acc

rue

d-1

3th

Ch

eq

ue

1,0

03

,04

19

54

,96

8L

ea

ve a

ccru

al

3,2

85

,00

02

,71

3,0

00

Sa

lary

Co

ntr

ol A

cco

un

t-

3,7

85

Bo

ard

Pa

yme

nts

Co

ntr

ol A

cco

un

t4

,52

77

,27

9

8,3

98

,65

01

7,8

28

,17

3

14

.R

ev

en

ue

pa

yab

le t

o P

rov

inc

ial

Re

ve

nu

e F

un

d

Re

ven

ue

p

aya

ble

21

7,8

24

85

7,1

78

Re

ve

nu

e c

oll

ec

ted

on

be

ha

lf o

f D

ep

art

me

nt

Ba

lan

ce a

t th

e b

eg

inn

ing

of

the

ye

ar

85

7,1

78

61

4,7

26

Re

ven

ue

co

llect

ed

2,7

15

,32

91

0,2

91

,02

6L

ess

re

ven

ue

tra

nsf

err

ed

to

Pro

vin

cia

l Re

ven

ue

Fu

nd

(3,5

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its

form

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bo

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th

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16

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en

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s b

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rs /

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pu

ty C

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an

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nt

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en

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nu

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ua

l F

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7N

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5,8

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1,6

61

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58

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5

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nd

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sid

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f a

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ass

ess

ed

in t

he

pri

or

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r(s)

.

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inis

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g b

ala

nce

wa

s u

sed

as

a d

ep

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atio

n m

eth

od

, in

ste

ad

of

the

str

aig

ht

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me

tho

d a

s p

er

acc

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ntin

g p

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ten

tion

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es,

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d w

ork

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re b

oth

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we

re o

vers

tate

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Bu

ildin

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rth

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5,6

mill

ion

we

re r

eco

gn

ise

d in

bo

th L

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an

d D

ep

art

me

nt

of

Pu

blic

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rks'

AF

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42

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po

po

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uri

sm

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en

cy

An

nu

al F

ina

nci

al S

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me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

No

tes

to

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e A

nn

ua

l F

ina

nc

ial

Sta

tem

en

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igu

res

in R

an

d

29

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rio

r p

eri

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err

ors

(c

on

tin

ue

d)

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ere

fore

, th

ose

bu

ildin

gs

we

re d

ere

cog

nis

ed

re

tro

spe

ctiv

ely

.

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yab

les

fro

m e

xch

an

ge

tra

nsa

ctio

ns

an

d p

rovi

sio

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nvo

ice

s n

ot

acc

ou

nte

d f

or

in t

he

pri

or

yea

r a

nd

re

vers

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f d

up

lica

ted

invo

ice

s; -

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ave

acc

rua

l wa

s in

corr

ect

ly c

lass

ifie

d a

s p

rovi

sio

n in

ste

ad

of

pa

yab

les

fro

m e

xch

an

ge

tra

nsa

ctio

ns.

Oth

er

inco

me

: -

Dis

cou

nt

rece

ive

d a

nd

insu

ran

ce in

com

e.

Fin

an

ce c

ost

: -

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tere

st p

aid

on

late

pa

yme

nt.

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late

d p

art

y tr

an

sact

ion

an

d b

ala

nce

s w

ere

no

t d

iscl

ose

d (

LE

DE

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sh f

low

sta

tem

en

t -

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nt

rece

ive

d in

corr

ect

ly c

lass

ifie

d u

nd

er

fina

nci

ng

act

iviti

es

inst

ea

d o

f o

pe

ratin

g a

ctiv

itie

s.

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tem

en

t o

f F

ina

nc

ial

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sit

ion

De

cre

ase

in P

rop

ert

y, p

lan

t a

nd

eq

ipm

en

t-

(48

,14

8,7

98

)In

cre

ase

in P

aya

ble

s fr

om

exc

ha

ng

e t

ran

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ion

s-

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cre

ase

in p

rovi

sio

n-

2,7

13

,00

0D

ecr

ea

se in

re

valu

atio

n r

ese

rve

-7

9,7

77

,42

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cre

ase

in A

ccu

mu

late

d s

urp

lus

-(2

6,2

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27

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9

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tem

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t o

f F

ina

nc

ial

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rfo

rma

nc

eIn

cre

ase

in O

the

r in

com

e-

(14

,02

4)

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cre

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in D

ep

reci

atio

n a

nd

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ort

isa

tion

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68

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ea

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ce c

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cre

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en

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en

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01

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5D

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pa

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79

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ase

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mp

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me

nt

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26

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4

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27

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30

.R

isk

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na

ge

me

nt

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an

cia

l ri

sk

ma

na

ge

me

nt

The o

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nis

atio

n’s

act

iviti

es

exp

ose

s it

to a

va

rie

ty o

f fin

an

cia

l ris

ks:

liqu

idity

an

d c

red

it ri

sks.

43


111

Lim

po

po

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sm

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en

cy

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nu

al F

ina

nci

al S

tate

me

nts

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Ma

rch

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No

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ua

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tem

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res

in R

an

d

29

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rio

r p

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ors

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on

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d)

Th

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ose

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ildin

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re d

ere

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nis

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or

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ifie

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ad

of

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yab

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tra

nsa

ctio

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er

inco

me

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cou

nt

rece

ive

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nd

insu

ran

ce in

com

e.

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an

ce c

ost

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tere

st p

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late

pa

yme

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late

d p

art

y tr

an

sact

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d b

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nce

s w

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no

t d

iscl

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LE

DE

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sh f

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tem

en

t -

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nt

rece

ive

d in

corr

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ly c

lass

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d u

nd

er

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nci

ng

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iviti

es

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ea

d o

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pe

ratin

g a

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itie

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tem

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f F

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ial

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sit

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cre

ase

in P

rop

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lan

t a

nd

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98

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cre

ase

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aya

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om

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ng

e t

ran

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38

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cre

ase

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rovi

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n-

2,7

13

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0D

ecr

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se in

re

valu

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n r

ese

rve

-7

9,7

77

,42

3In

cre

ase

in A

ccu

mu

late

d s

urp

lus

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6,2

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-6

27

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nc

eIn

cre

ase

in O

the

r in

com

e-

(14

,02

4)

De

cre

ase

in D

ep

reci

atio

n a

nd

am

ort

isa

tion

-(7

68

,35

7)

Incr

ea

se in

Fin

an

ce c

ost

-2

,64

8In

cre

ase

in G

en

era

l exp

en

ses

-1

01

,41

5D

ecr

ea

se in

Re

pa

irs

an

d m

ain

ten

an

ce-

(6,3

06

)D

ecr

ea

se in

loss

on

sa

le o

f a

sse

ts-

(16

8,8

79

)In

cre

ase

in I

mp

air

me

nt

loss

-2

26

,45

4

-(6

27

,04

9)

30

.R

isk

ma

na

ge

me

nt

Fin

an

cia

l ri

sk

ma

na

ge

me

nt

The o

rga

nis

atio

n’s

act

iviti

es

exp

ose

s it

to a

va

rie

ty o

f fin

an

cia

l ris

ks:

liqu

idity

an

d c

red

it ri

sks.

43


112

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

No

tes t

o t

he A

nn

ual F

inan

cia

l S

tate

men

tsF

igu

res

in R

an

d

30

.R

isk

ma

na

ge

me

nt

(co

nti

nu

ed

)

Liq

uid

ity

ris

k

The e

ntit

y’s

risk

to

liq

uid

ity is

a r

esu

lt o

f th

e f

un

ds

ava

ilab

le t

o c

ove

r fu

ture

co

mm

itme

nts

. T

he

en

tity

ma

na

ge

s liq

uid

ity r

isk

thro

ug

h a

n o

ng

oin

g r

evi

ew

of

futu

re c

om

mitm

en

ts a

nd

cre

dit

faci

litie

s.

Ca

sh f

low

fo

reca

sts

are

pre

pa

red

.

Th

e t

ab

le b

elo

w a

na

lyse

s th

e e

ntit

y’s

fina

nci

al l

iab

ilitie

s in

to r

ele

van

t m

atu

rity

gro

up

ing

s b

ase

d o

n t

he

re

ma

inin

g p

eri

od

at

the

sta

tem

en

t o

f fin

an

cia

l po

sitio

n t

o t

he

co

ntr

act

ua

l ma

turi

ty d

ate

. T

he

am

ou

nts

dis

clo

sed

in t

he

ta

ble

are

th

e c

on

tra

ctu

al

un

dis

cou

nte

d c

ash

flo

ws.

Ba

lan

ces

du

e w

ithin

12

mo

nth

s e

qu

al t

he

ir c

arr

yin

g b

ala

nce

s a

s th

e im

pa

ct o

f d

isco

un

ting

is n

ot

sig

nifi

can

t.

At

31

Ma

rch

20

17

Le

ss

th

an

1ye

ar

Be

twe

en

1a

nd

2 y

ea

rsB

etw

ee

n 2

an

d 5

ye

ars

Over

5 y

ea

rs

Fin

an

ce le

ase

14

,82

1,0

21

16

,30

3,1

23

25

,69

9,8

83

-P

aya

ble

s fr

om

exc

ha

ng

e t

ran

sact

ion

s8

,39

8,6

50

--

-

At

31

Ma

rch

20

16

Le

ss

th

an

1ye

ar

Be

twe

en

1a

nd

2 y

ea

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etw

ee

n 2

an

d 5

ye

ars

Over

5 y

ea

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Fin

an

ce le

ase

13

,47

3,6

55

14

,82

1,0

21

42

,00

3,0

06

-P

aya

ble

s fr

om

exc

ha

ng

e t

ran

sact

ion

s1

7,8

28

,17

3-

--

Cre

dit

ris

k

Cre

dit

risk

co

nsi

sts

ma

inly

of

cash

de

po

sits

, ca

sh e

qu

iva

len

ts a

nd

tra

de

de

bto

rs.

Th

e e

ntit

y o

nly

de

po

sits

ca

sh w

ith m

ajo

rb

an

ks w

ith h

igh

qu

alit

y cr

ed

it st

an

din

g a

nd

lim

its e

xpo

sure

to

an

y o

ne

co

un

ter-

pa

rty.

Ma

na

ge

me

nt

eva

lua

ted

cre

dit

risk

re

latin

g t

o c

ust

om

ers

on

an

on

go

ing

ba

sis.

If

cust

om

ers

are

ind

ep

en

de

ntly

ra

ted

, th

ese

ratin

gs

are

use

d.

Oth

erw

ise

, if

the

re is

no

ind

ep

en

de

nt

ratin

g,

risk

co

ntr

ol a

sse

sse

s th

e c

red

it q

ua

lity

of

the

cu

sto

me

r, t

aki

ng

into

acc

ou

nt

its f

ina

nci

al p

osi

tion

, p

ast

exp

eri

en

ce a

nd

oth

er

fact

ors

. In

div

idu

al r

isk

limits

are

se

t b

ase

d o

n in

tern

al o

r e

xte

rna

lra

ting

s in

acc

ord

an

ce w

ith li

mits

se

t b

y th

e b

oa

rd.

Th

e u

tilis

atio

n o

f cr

ed

it lim

its is

re

gu

larl

y m

on

itore

d.

Sa

les

to r

eta

il cu

sto

me

rsa

re s

ett

led

in c

ash

or

usi

ng

ma

jor

cre

dit

card

s.

Fin

an

cia

l ass

ets

exp

ose

d t

o c

red

it ri

sk a

t ye

ar

en

d w

ere

as

follo

ws:

` Fin

an

cia

l in

str

um

en

t2

01

72

01

6C

ash

an

d c

ash

eq

uiv

ale

nts

8,4

08

,09

41

8,2

86

,28

4R

ece

iva

ble

s fr

om

exc

ha

ng

e t

ran

sact

ion

s4

,73

3,2

61

63

9,2

55

Re

ceiv

ab

les

fro

m n

on

-exc

ha

ng

e t

ran

sact

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s5

40

,11

7-

31

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oin

g c

on

ce

rn

Th

e L

imp

op

o D

ep

art

me

nt

of

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no

mic

De

velo

pm

en

t, E

nvi

ron

me

nt

an

d T

ou

rism

ha

s co

nfir

me

d t

he

fu

nd

ing

fo

r L

imp

op

oT

ou

rism

Ag

en

cy f

or

the

fo

rese

ab

le f

utu

re.

A le

tte

r to

th

is e

ffe

ct h

as

be

en

re

ceiv

ed

.

32

.E

ve

nts

aft

er

the

re

po

rtin

g d

ate

Du

rin

g t

he

ye

ar

un

de

r re

vie

w,

Lim

po

po

To

uri

sm A

ge

ncy

(L

TA

) tr

an

sfe

rre

d L

imp

op

o W

ildlif

e R

eso

rts

(LW

R)

no

n c

urr

en

t a

sse

tsa

mo

un

ting

to

R 1

03

.8 m

illio

n a

nd

inve

nto

rie

s a

mo

un

ting

to

R 1

68

44

6 t

o L

imp

op

o D

ep

art

me

nt

of

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no

mic

De

velo

pm

en

tE

nvi

ron

me

nt

an

d T

ou

rism

(L

ED

ET

).

44

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

r e

nd

ed

31

Ma

rch

20

17

No

tes t

o t

he A

nn

ual F

inan

cia

l S

tate

men

tsF

igu

res

in R

an

d

33

.F

ruit

les

s a

nd

wa

ste

ful

ex

pe

nd

itu

re

Op

en

ing

ba

lan

ce1

,74

6,2

47

1,3

68

,09

5In

tere

st o

n la

te p

aym

en

t-E

sko

m a

nd

Te

lko

m1

,11

45

,16

6P

en

alti

es

SA

BC

15

,71

5-

Pe

na

ltie

s o

n m

oto

r ve

hic

les

lice

nse

s-P

olo

kwa

ne

mu

nic

ipa

lity

4,0

61

-Im

ag

e t

rave

l & t

ou

r-In

voic

e a

mo

un

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xce

ed

ord

er

am

ou

nt

49

5-

Re

serv

atio

n b

oo

kin

g s

yste

m n

ot

fully

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lem

en

ted

-9

9,1

12

KP

MG

-ove

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-2

73

,87

4

1,7

67

,63

21

,74

6,2

47

34

.Ir

reg

ula

r e

xp

en

dit

ure

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en

ing

ba

lan

ce4

,37

0,1

20

11

,86

2,0

78

Ad

d:

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gu

lar

Exp

en

ditu

re -

cu

rre

nt

yea

r5

06

,84

41

,87

2,6

20

Le

ss:

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ou

nts

co

nd

on

ed

-(5

,43

8,0

96

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ess

: A

dju

stm

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t to

pri

or

yea

r b

ala

nce

-(3

,92

6,4

82

)

4,8

76

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44

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0,1

20

De

tail

s o

f ir

reg

ula

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xp

en

dit

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lett

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SL

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94

,34

9

Ima

ge

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vel a

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urs

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se

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e w

as

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de

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t a

pu

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er

12

,49

5

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6,8

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35

.R

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iati

on

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et

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of

fin

an

cia

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ce

Re

con

cilia

tion

of

bu

dg

et

surp

lus/

de

ficit

with

th

e s

urp

lus/

de

ficit

in t

he

sta

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t o

f fin

an

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l pe

rfo

rma

nce

:

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t (d

efic

it) s

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lus

pe

r th

e s

tate

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of

fina

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orm

an

ce(9

0,3

44

,75

5)

57

,44

0,3

46

36

.R

ec

on

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iati

on

be

twe

en

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dg

et

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d c

as

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low

sta

tem

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t

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con

cilia

tion

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bu

dg

et

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lus/

de

ficit

with

th

e n

et

cash

ge

ne

rate

d f

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op

era

ting

, in

vest

ing

an

d f

ina

nci

ng

act

iviti

es:

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era

tin

g a

cti

vit

ies

Act

ua

l am

ou

nt

as

pre

sen

ted

in t

he

bu

dg

et

sta

tem

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t1

1,7

60

,27

4-

Fin

an

ce le

ase

pa

yme

nts

13

,47

3,6

55

-A

mo

un

ts S

urr

en

de

red

(10

,58

6,7

17

)-

Oth

er

Move

ments

(32

4,7

34

)-

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t c

as

h f

low

s f

rom

op

era

tin

g a

cti

vit

ies

14

,32

2,4

78

-

Inv

es

tin

g a

cti

vit

ies

Act

ua

l am

ou

nt

as

pre

sen

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he

bu

dg

et

sta

tem

en

t(1

40

,29

6)

-

Fin

an

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g a

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vit

ies

Fin

an

ce le

ase

pa

yme

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(13

,47

3,6

55

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d(1

0,5

86

,71

7)

-

Ne

t c

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cin

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vit

ies

(24

,06

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72

)-

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t c

as

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ted

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m o

pe

rati

ng

, in

ve

sti

ng

an

d f

ina

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ac

tiv

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s(9

,87

8,1

90

)-

45


113

Lim

po

po

To

uri

sm

Ag

en

cy

An

nu

al F

ina

nci

al S

tate

me

nts

fo

r th

e y

ea

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nd

ed

31

Ma

rch

20

17

No

tes t

o t

he A

nn

ual F

inan

cia

l S

tate

men

tsF

igu

res

in R

an

d

33

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ruit

les

s a

nd

wa

ste

ful

ex

pe

nd

itu

re

Op

en

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ba

lan

ce1

,74

6,2

47

1,3

68

,09

5In

tere

st o

n la

te p

aym

en

t-E

sko

m a

nd

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lko

m1

,11

45

,16

6P

en

alti

es

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BC

15

,71

5-

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na

ltie

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4,0

61

-Im

ag

e t

rave

l & t

ou

r-In

voic

e a

mo

un

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er

am

ou

nt

49

5-

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serv

atio

n b

oo

kin

g s

yste

m n

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fully

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lem

en

ted

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9,1

12

KP

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-ove

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73

,87

4

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,63

21

,74

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34

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reg

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xp

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11

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2,0

78

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d:

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en

ditu

re -

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nt

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06

,84

41

,87

2,6

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ss:

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ou

nts

co

nd

on

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-(5

,43

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96

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ess

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dju

stm

en

t to

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r b

ala

nce

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)

4,8

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,96

44

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0,1

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lett

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,34

9

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ge

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12

,49

5

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6,8

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35

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urp

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in t

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rfo

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ce(9

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57

,44

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36

.R

ec

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iviti

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bu

dg

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ase

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13

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3,6

55

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Move

ments

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4,7

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t c

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low

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op

era

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g a

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ies

14

,32

2,4

78

-

Inv

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l am

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6)

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ase

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86

,71

7)

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,87

8,1

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45


114

Lim

po

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e y

ea

r e

nd

ed

31

Ma

rch

20

17

No

tes t

o t

he A

nn

ual

Fin

an

cia

l S

tate

me

nts

Fig

ure

s in

Ra

nd

37

.B

ud

ge

t d

iffe

ren

ce

s

Ma

teri

al

dif

fere

nc

es

be

twe

en

bu

dg

et

an

d a

ctu

al

am

ou

nts

Th

e in

form

atio

n b

elo

w e

xpla

ins

the

ma

teri

al v

ari

an

ce b

etw

ee

n f

ina

l bu

dg

et

an

d a

ctu

al a

mo

un

ts a

s p

rese

nte

d o

n t

he

sta

tem

en

to

f co

mp

ari

son

be

twe

en

bu

dg

et

an

d a

ctu

al a

mo

un

ts.

Pe

rso

nn

el C

ost

s:

Th

e u

nd

ers

pe

nd

ing

of

R 3

19

5 2

10

is d

ue

to

ou

tsta

nd

ing

Pe

rfo

rma

nce

Ass

ess

me

nts

fo

r th

e y

ea

r u

nd

er

revi

ew

.

Bo

ard

fe

es:

Th

e u

nd

ers

pe

nd

ing

of

R 8

43

38

3 is

as

a r

esu

lt o

f d

isa

pp

rove

d in

cre

ase

in B

oa

rd f

ee

s.

Co

nd

itio

na

l gra

nt-

Ma

rke

ting

:

Th

e u

nd

ers

pe

nd

ing

of

R 3

74

0 3

10

is a

s a

re

sult

of

the

fo

llow

ing

pro

ject

s: -

Bra

nd

jou

rne

y n

ot

yet

fina

lise

d.

- B

usi

ne

ss t

ou

rism

str

ate

gy

ha

ve n

ot

be

en

re

vie

we

d.

Ge

ne

ral e

xpe

nd

iture

:

Th

e u

nd

ers

pe

nd

ing

of

R 2

86

3 2

18

is

as

a r

esu

lt o

f th

e f

ollo

win

g p

roje

cts:

- D

esi

gn

an

d d

eve

lop

me

nt

of

the

We

bsi

te:

A t

en

de

r w

as

issu

ed

bu

t su

bse

qu

en

tly c

an

celle

d d

ue

to

it b

ee

n r

eg

ard

ed

as

no

n-

resp

on

sive

- D

eve

lop

me

nt

an

d I

mp

lem

en

tatio

n o

f IC

T S

tra

teg

y: A

te

nd

er

wa

s ca

nce

lled

du

e t

o in

corr

ect

sp

eci

fica

tion

. -

Org

an

isa

tion

al R

e-d

esi

gn

: T

he

de

lay

in t

he

ap

po

intm

en

t a

nd

imp

lem

en

tatio

n o

f th

e o

rga

nis

atio

na

l re

de

sig

n p

roce

ss r

esu

ltin

gin

un

de

rsp

en

din

g.

Dif

fere

nc

es

be

twe

en

bu

dg

et

an

d a

ctu

al

am

ou

nts

ba

sis

of

pre

pa

rati

on

an

d p

res

en

tati

on

Th

e b

ud

ge

t a

nd

th

e a

cco

un

ting

ba

ses

diff

er.

Th

e a

nn

ua

l fin

an

cia

l sta

tem

en

ts f

or

the

en

tity

are

pre

pa

red

on

th

e a

ccru

al b

asi

su

sin

g a

cla

ssifi

catio

n b

ase

d o

n t

he

na

ture

of

exp

en

ses

in t

he

sta

tem

en

t o

f fin

an

cia

l pe

rfo

rma

nce

. T

he

an

nu

al f

ina

nci

al

sta

tem

en

ts d

iffe

r fr

om

th

e b

ud

ge

t, w

hic

h is

ap

pro

ved

on

th

e c

ash

ba

sis.

Th

e a

mo

un

ts in

th

e a

nn

ua

l fin

an

cia

l sta

tem

en

ts w

ere

re

cast

fro

m t

he

acc

rua

l ba

sis

to t

he

ca

sh b

asi

s a

nd

re

cla

ssifi

ed

by

fun

ctio

na

l cla

ssifi

catio

n t

o b

e o

n t

he

sa

me

ba

sis

as

the

fin

al a

pp

rove

d b

ud

ge

t. I

n a

dd

itio

n,

ad

just

me

nts

to

am

ou

nts

in t

he

an

nu

al f

ina

nci

al s

tate

me

nts

fo

r tim

ing

diff

ere

nce

s a

sso

cia

ted

with

th

e c

on

tinu

ing

ap

pro

pri

atio

n w

ere

ma

de

to

exp

ress

th

e a

ctu

al

am

ou

nts

on

a c

om

pa

rab

le b

asi

s to

th

e f

ina

l ap

pro

ved

bu

dg

et.

38

.T

ran

sfe

r o

f a

ss

ets

As

eff

ect

ive

fro

m t

he

1st

of

Ap

ril 2

01

6 t

he

en

tity

ha

s tr

an

sfe

rre

d t

he

fu

nct

ion

s re

latin

g t

o L

imp

op

o W

ildlif

e R

eso

rts

(LW

R)

toL

ED

ET

. F

or

de

tails

of

ass

ets

an

d li

ab

ilitie

s tr

an

sfe

rre

d r

efe

r to

no

te 3

.

As

se

ts a

nd

pa

yab

les

tra

ns

ferr

ed

Pro

pe

rty,

pla

nt

an

d e

qu

ipm

en

t(1

03

,80

4,4

65

)-

Re

ten

tion

fe

es

4,6

67

,41

8-

Inve

nto

ry(1

68

,44

6)

-

(99

,30

5,4

93

)-

46


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