special rating area (sra) audited financial …

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REPORT TO SUBCOUNCIL 8

1. ITEM NUMBER : 2. SUBJECT

SPECIAL RATING AREA (SRA) AUDITED FINANCIAL STATEMENTS AND ANNUAL REPORTS: FINANCIAL YEAR ENDED 30 JUNE 2020

ISIHLOKO

INGXELO-NKCAZA ZONYAKA EZIMNGEZIMALI EZIHAMBA NENGXELO YONYAKA EZIPHICOTHIWEYO EZINGEMIMANDLA ENGERHAFU EYODWA (SRA’S): KUNYAKA-MALI OPHELE NGOWAMA-30 KWEYESILIMELA 2020 ONDERWERP

GEOUDITEERDE FINANSIëLE STATE EN JAARVERSLAE VIR SPESIALE-AANSLAGGEBIEDE (SRA’S): BOEKJAAR GEëINDIG 30 JUNIE 2020 K3444

3. PURPOSE

To comply with Section 11(8)(a) & (b) of the Special Rating Areas By-law 2012 as amended 2016 (SRA By-Law) by submitting the Audited Financial Statements and Annual Reports of the SRAs in its area of jurisdiction to Subcouncil 8.

4. FOR DECISION BY

For noting by Subcouncil 8.

Del. Part 24(1)(1) Delegation 24 1(1): To assess the performance of service delivery generally within their area of jurisdiction (outcome monitoring).

5. EXECUTIVE SUMMARY

In accordance with the SRA By-law, Section 11(8)(a) & (b), the 2018 Audited Financial Statements and the Annual Reports of the following SRAs are submitted for noting by the Subcouncil:

Subcouncil 8- Strand Business Improvement District

08SUB24/08/2021


6. RECOMMENDATIONS

That Subcouncil 8 notes the contents of the Audited Financial Statements and Annual Reports of the Special Rating Areas.

IZINDULULO

Ukuba iBhungana-8 maliqwalasele okuqulathwe ziiNgxelo-nkcaza ezingeziMali eziPhicothiweyo neeNgxelo zoNyaka ezingeMimandla engeRhafu eyodwa.

AANBEVELINGS

Dat subraad 8 kennis neem van die inhoud van die geouditeerde finansiële state en jaarverslae van die spesiale-aanslaggebiede.

7. DISCUSSION/CONTENTS Section 11(8)(a) & (b) of the SRA By-law reads as follows:

“Within two months after the Annual General Meeting, the management body must provide the relevant Subcouncil with –

(a) its audited financial statements for the immediately preceding year; and (b) an annual report on its progress in carrying out the provisions of the

business plan in the preceding year to improve and upgrade the special rating area.”

Accordingly, the Annual Report and the Audited Financial Statements of the Strand Business Improvement District NPC are submitted to the Subcouncil.

Subcouncil is to note the contents thereof.

7.1. Constitutional and Policy Implications

This report complies with the provisions of Section 11(8)(a) & (b) of the SRA

By-Law

7.2. Sustainability implications

Does the activity in this report have any sustainability implications for the City?

No x Yes


7.3. Environmental implications

Does your report have any environmental implications:

No x Yes

7.3.1 The SRA does not affect the IMEP (Integrated Metropolitan Environmental Policy)

7.4. Legal Implications

This report complies with the provisions of Section 11(8)(a) & (b) of the SRA By-Law.

7.5. Staff Implications Does your report impact on staff resources or result in any additional staffing resources being required? No

x

Yes

7.6. Other Services Consulted Not applicable.

ANNEXURES Annexure A: Minutes of Annual General Meeting held November 2020 Annexure B: Annual Report and the Audited Financial Statement for the year ended 30 June 2020


FOR FURTHER DETAILS CONTACT:

NAME Elaine Noble

CONTACT NUMBERS 021850 4107

E-MAIL ADDRESS [email protected]

DIRECTORATE Urban Management

Comment:

SUBCOUNCIL MANAGER

NAME ERIKA WILLIAMS

DATE

REPORT COMPLIANT WITH THE PROVISIONS OF

COUNCIL’S DELEGATIONS, POLICIES, BY-LAWS

AND ALL LEGISLATION RELATING TO THE MATTER

UNDER CONSIDERATION.

FOR FURTHER DETAILS, CONTACT:

NAME Elaine Noble

CONTACT NUMBERS 021 850 4107

E-MAIL ADDRESS [email protected]

DIRECTORATE Urban Management

FILE REF NO H

Comment:

CHAIRPERSON – SUBCOUNCIL 8 Report compliant

NAME CLLR CHANTAL CERFONTEIN

DATE 17 AUGUST 2021





Comment:

SUBCOUNCIL MANAGER Report compliant

NAME ERIKA WILLIAMS

DATE 17 AUGUST 2021





ANNUAL GENERAL MEETING NOVEMBER 2020

MINUTES OF THE ANNUAL GENERAL MEETING HELD ON 4 NOVEMBER 2020 AT FRIEDMAN & COHEN, STRAND AT 16H00 Present Grant Goodwin (GG) Chairperson and Director – SBID Daniel Jacob Malan (DJM) Director – SBID Gene Lohrentz (GL) Geocentric as Management Company Johan Erasmus (JE) Geocentric as Management Company Annelie Rossouw (AR) Future Strand Project Coordinator Apologies Barry Friedman (BF) Director – SBID Mr Dorrington See attached attendance register for additional attendees:

1. WELCOME a. The Chairperson welcomed all present to the Annual General Meeting of SBID.

ALL

2. APOLOGIES, PROXY AND QUORUM a. The Chairperson announced that a quorum is present and that the meeting is

properly constituted. Apologies were noted.

ALL

3. MINUTES a. The Minutes of the previous AGM was approved by show of hands.

ALL

4. APPROVAL OF THE AGENDA a. The Chairperson asked the meeting if anyone would like to add anything to the

Agenda of the meeting. b. The Agenda was accepted.

ALL

5. CHAIRPERSONS REPORT AND FEEDBACK a. GL presented a feedback of the year’s operations with specific reference to

Public Safety, Cleaning, Urban Management and Social Upliftment. b. Lockdown – GL showed how the public safety patrol patterns were changed

during the lockdown period. c. GL thanked the SBID Public Safety service provider, Secure Rite, including their

additional motorcycle patrol team for their contribution to the safety of the area.

d. Lockdown – GL demonstrated the work done by the SBID management team to ensure both staff safety and to ensure that the SBID contributes to the safety and health of the area by implementing a sanitation ambassador for the area to sanitize public touch points and sanitize hotspot areas in the public spaces of the area.

e. GL noted the challenges to maintain a cleaning service due to the lockdown. f. GL illustrated the dynamic changes between day-time and night-time

operations. g. GL showed how the SBID officers assisted with the apprehension of suspected

criminals in the area.

ALL

ANNEXURE A

2

h. GL demonstrated the work done by the Social Upliftment program where members of the night shelter form work teams and perform urban cleaning in the SBID area.

i. GL showed how this includes removing all the sand on the promenade.

6. FUTURE STRAND a. Annelie Rossouw was appointed as the project manager for the Future Strand

Initiative b. AR gave a brief presentation of the Future Strand initiative and the progress

made with the project in the last year. c. AR noted how Future Strand has formed a steering committee and how the

initiative have connected with the City of Cape Town who showed interest in supporting the initiative.

d. She noted a list of quick wins for Future Strand that have been communicated with the local sub-council.

e. AR noted the progress made with the public art along the promenade. f. There is also an initiative to establish various baselines as reference. g. AR noted the various other initiatives that the project has been in contact with

and investigated common aims including the Hout Bay Partnership. h. GG thanked AR for her contribution to the Future Strand initiative.

ALL

7. ACCEPTANCE OF THE AUDITED FINANCIAL STATEMENTS a. The meeting adopted and approved the AFS of the SBID.

ALL

8. APPROVAL OF THE BUDGET FOR 2021/22 AND SURPLUS UTILIZATION a. GL also presented the budget for 2021/22 and the surplus utilisation of R

68 000. The meeting approved the budget and surplus utillisation.

ALL

9. IMPLEMENTATION PLAN APPROVAL a. The members of the meeting approved the proposed implementation plan as

well as the 2021/22 implementation plan.

ALL

10. AUDITORS FOR 2021/2022 a. GL noted that the current auditors are Pyper Turner. The members approved

the re-appointment of Pyper Turner. b. GG noted the settlement of the outstanding Tax matter through the auditors.

ALL

11. APPOINTMENT OF THE COMPANY SECRETARY a. GL noted that Pyper Turner currently act as Company Secretary. The members

approved the re-appointment of Pyper Turner.

ALL

12. STAND DOWN & RE-ELECTION OF THE BOARD a. Mr Grant Goodwin has resigned but have made himself available for re-

election. Mr Goodwin was re-elected to the Board.

ALL

13. QUESTIONS a. Mr Joubert of the City asked if the expansion of the SBID to include the

residential component will continue. GL explained that there is no-one pursuing that inclusion now.

14. CLOSURE a. GL thanked Mr Johan Erasmus for his excellent work as SBID manager and the

Board for their work in support of the SBID and the management team. Grant Goodwin thanked those involved in the SBID for their support and for those business and property owners for being present.

ALL

Strand Business Improvement District NPC(Registration number: 2014/240759/08)Financial Statements for the year ended 30 June 2020

Statement of Financial Position as at 30 June 2020Figures in Rand Notes 2020 2019

Assets

Current Assets

Trade and other receivables 2 67,960 57,741

Cash and cash equivalents 3 874,145 722,468

942,105 780,209

Total Assets 942,105 780,209

Equity and Liabilities

Equity

Retained surplus 930,955 769,652

Liabilities

Current Liabilities

Trade and other payables 4 11,150 10,557

Total Equity and Liabilities 942,105 780,209

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Statement of Comprehensive IncomeFigures in Rand Notes 2020 2019

Revenue 5 1,230,900 1,146,235

Other income

Retention refund - City of Cape Town 575 7,714

Interest received 6 45,107 41,361

45,682 49,075

Operating expenses

Accounting fees 9,551 8,129

Auditor's remuneration 8 12,450 13,100

Bank charges 1,162 1,390

CIPC fees 450 450

Communications - 32,000

Consultation fees 4,500 -

Fines and penalties - 2

Insurance 3,261 858

Management services 345,308 378,667

Projects 66,100 90,100

Security 672,497 617,235

1,115,279 1,141,931

Surplus for the year 161,303 53,379

8


Statement of Changes in Equity

Figures in RandRetainedsurplus

Total equity

Balance at 01 July 2018 716,273 716,273Surplus for the year 53,379 53,379

Balance at 01 July 2019 769,652 769,652Surplus for the year 161,303 161,303

Balance at 30 June 2020 930,955 930,955

9


Statement of Cash FlowsFigures in Rand Notes 2020 2019

Cash flows from operating activities

Cash generated from operations 7 106,570 9,913

Interest income 45,107 41,361

Net cash from operating activities 151,677 51,274

Total cash movement for the year 151,677 51,274

Cash at the beginning of the year 722,468 671,194

Total cash at end of the year 3 874,145 722,468

10


Accounting Policies

1. Presentation of financial statements

The financial statements have been prepared on a going concern basis in accordance with the InternationalFinancial Reporting Standard for Small and Medium-sized Entities, and the Companies Act 71 of 2008. Thefinancial statements have been prepared on the historical cost basis, and incorporate the principal accountingpolicies set out below. They are presented in South African Rands.

These accounting policies are consistent with the previous period.

1.1 Financial instruments

Initial measurement

Financial instruments are initially measured at the transaction price (including transaction costs except in the initialmeasurement of financial assets and liabilities that are measured at fair value through profit or loss) unless thearrangement constitutes, in effect, a financing transaction in which case it is measured at the present value of thefuture payments discounted at a market rate of interest for a similar debt instrument.

Financial instruments at cost

Equity instruments that are not publicly traded and whose fair value cannot otherwise be measured reliably withoutundue cost or effort are measured at cost less impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand, demand deposits and other short-term highly liquidinvestments that are readily convertible to a known amount of cash and are subject to an insignificant risk ofchanges in value. These are initially and subsequently recorded at fair value.

1.2 Revenue

Revenue is recognised to the extent that the company has transferred the significant risks and rewards ofownership of goods to the buyer, or has rendered services under an agreement provided the amount of revenuecan be measured reliably and it is probable that economic benefits associated with the transaction will flow to thecompany. Revenue is measured at the fair value of the consideration received or receivable, excluding sales taxesand discounts.

Interest is recognised, in profit or loss, using the effective interest rate method.

11


Notes to the Financial StatementsFigures in Rand 2020 2019

2. Trade and other receivables

Prepaid expenses 67,960 57,741

3. Cash and cash equivalents

Cash and cash equivalents consist of:

Nedbank current account 128,460 21,890Nedbank 32 day notice account 745,685 700,578

874,145 722,468

4. Trade and other payables

Trade payables 250 251VAT 10,900 10,306

11,150 10,557

5. Revenue

Services Rendered - City of Cape Town 1,230,900 1,146,235

In accordance with the finance agreement, the city pays over 97% of the annualbudget to the CID in 1/12th instalments and retains 3% as a provision for bad debts.Accordingly, the City paid over R 1,230,900 and the cumulative retention including VAT was R 214,617 for the 2019/2020 financial year. Retention of R 575 wasrefunded to the Strand Business Improvement District NPC in 2019/2020.

6. Investment revenue

Interest revenueBank 45,107 41,361

7. Cash generated from operations

Surplus before taxation 161,303 53,379Adjustments for:Interest received (45,107) (41,361)Changes in working capital:Trade and other receivables (10,219) (4,277)Trade and other payables 593 2,172

106,570 9,913

8. Auditors remuneration

Audit services 8,250 7,500Tax- and secretarial services 4,200 5,600

12,450 13,100

12


Notes to the Financial StatementsFigures in Rand 2020 2019

9. Taxation

No provision has been made for 2020 tax as the company is registered asa Public Benefit Organisation at the Tax Exempt Unit.

SARS did, however, assess the company for the 2015 year of assessment as anormal profit company, for an amount of R155,723 including Section 89quat(2) interest of R51,240. The process of objection and appeal against the assessment,which is being disputed, is currently still in progress.

This is, however, a potential liability for the company, should the objection- and appeal be unsuccessful.

10. Directors' remuneration

No emoluments were paid to the directors or any individuals holding a prescribed office during the year.

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