Annual Report 2016/17

Transcription

1 Annual Report 2016/17

2

3 TABLE OF CONTENTS PART A: GENERAL INFORMATION 1. General Information of the Board 5 2. List of Abbreviations 6 3. Foreword by the Chairperson 9 4. Overview by the Chief Executive Officer Statement of Responsibility and Confirmation of the Annual Report Strategic Overview Legislative and other Mandates Structure of the Board Organisational Structure 23 PART B: PERFORMANCE INFORMATION 1. Auditor-General s Report: Predetermined Objectives Statement of Responsibility for the Performance Information Executive Management Situational Analysis Strategic Outcome Oriented Goals Performance Information by Programme Summary of Financial Information Statistics 74 PART C: GOVERNANCE 1. Introduction Portfolio Committee Executive Authority The Board Risk Management Internal Control Unit Audit Committtee Internal Auditors Compliance with the Laws and Regulations Fraud and Corruption Minimising Conflict of Interest Code of Conduct Health, Safety and Environmental issues Company Secretary Socio Economic Development Audit Committee Report 116 PART D: HUMAN RESOURCES MANAGEMENT 1. Introduction Human Resource Oversight Statistics 121 PART E: FINANCIAL INFORMATION 1. Statement of Responsibility for the Annual Financial Statements Report of the Auditor-General Statement of Financial Position Statement of Financial Performance Statement of Changes in Net Assets Cash-flow Statements Statement of Comparison of Budget and Actual Amounts Accounting Policies Notes to the Annual Financial Statements 159 1

4 2

5 Part A GENERAL INFORMATION 1. General Information of the Board 2. List of Abbreviations 3. Foreword by the Chairperson 4. Overview by the Chief Executive Officer 5. Statement of Responsibility and Confirmation of the Annual Report 6. Strategic Overview 7. Legislative and other Mandates 8. Structure of the Board 9. Organisational Structure 3

6 4

7 1. General Information of the Board NAME OF ENTITY North West Gambling Board BUSINESS HOURS Monday to Friday, 08:00 to 17:00 NWGB HOTLINE NO WEBSITE AUDITORS Auditor-General of South Africa BANK ABSA Bank, Mahikeng BOARD SECRETARY Mr Rangwedi Jacob Montshioa HEAD OFFICE Physical Address 131 University Drive, Mmabatho, 2735 Postal Address Private Bag X34, Mmabatho, 2735 Telephone Number Facsimile Number REGIONAL OFFICE Physical Address 67 Brink Street, Rustenburg, 0299 Telephone Number Facsimile Number

8 2. List of Abbreviations AFS AGSA APP BBBEE BOARD CCMA CEO CSI FY GGR GRAP HR LOC LPM MEC MoU NWGB Annual Financial Statements Auditor-General of South Africa Annual Performance Plan Broad-Based Black Economic Empowerment North West Gambling Board Commission for Conciliation, Mediation and Arbitration Chief Executive Officer Community Social Investment Financial Year Gross Gaming Revenue Generally Recognised Accounting Practice Human Resources Letter of Certification Limited Payout Machine Member of the Executive Council Memorandum of Understanding North West Gambling Board 6

9 PFMA PPPFA RFA RRR SABS SAPS SARS SED TYPE A LPM SITE TYPE B LPM SITE TYPE C LPM SITE Public Finance Management Act Preferential Procurement Policy Framework Act Request for Applications Rebranding, Repositioning and Renewal South African Bureau of Standards South African Police Service South African Revenue Service Socio Economic Development 3 to 5 machines 6 to 30 machines 40 machines 7

10 I must indicate that the Board maintains a strategic relationship with all relevant stakeholders in particular the South African Police Service, and Financial Intelligence Centre. 8

11 3. Foreword by the Chairperson This annual report of the North West Gambling Board draws a curtain on the Financial Year 2016/2017, which was the final year of the term of office of members of the Board. The report reflects the key milestones achieved by the Board against its predetermined objectives for 2016/2017 Financial Year, which I must indicate that it has its own share of challenges. The Board during the period under review adopted strategic deliverables aimed at amongst others, creating an enabling environment for responsible licensing of all forms of gambling in terms of the legislation. The Board further undertook to improve efficiencies in the regulation of all forms of gambling. With the above in mind, the Board wanted to roll-out all forms of gambling allowed in terms of the legislation, and further ensure that gambling is conducted in a fair and honest manner. Furthermore, to ensure that levies and taxes paid to the Board are accurate and paid on time as prescribed by legislation. We must indicate that the Board recorded meaningful success in rolling out forms of gambling modes planned during the period under review. There was an increase in number of Limited Payout Machines rolled out with the majority of those machines located in premises owned by local Previously Disadvantaged Individuals, as evident from the performance report. It is also evident from the performance report contained herein, that the Board was able to adjudicate and approve six (6) applications for Bingo Operator licenses, though three (3) could not commence with operations as they are subjected to litigation by unsuccessful applicants. I must indicate that the Board maintains a strategic relationship with all relevant stakeholders in particular the South African Police Service, and Financial Intelligence Centre. The above-mentioned institutions are specifically highlighted as they are central to the Board executing its legislative mandate to regulate gambling in the North West Province. Diverse challenges and constraints confronted the Board in 2016/2017. The issue of illegal gambling is still a serious problem facing the Board and the problem is exacerbated by the fact that illegal operators are now technologically savvy as they are no longer using the traditional slot machines, but internet for their operations 9

12 The Board further undertook to improve efficiencies in the regulation of all forms of gambling. which has proved difficult to combat as these premises are disguised as Internet Cafés. The delay in the promulgation of the Regulations to increase the number of casinos in the Republic, has impacted negatively on the performance of the Board, as it was the intention of the Board to grant and issue a fifth casino licence during the period under review. As we leap forward into 2017/2018 Financial Year, we do so filled with a deep sense of enthusiasm as we intend to finalise the registration of a Trust for purpose of managing the socio-economic development funds. We further want to see the promulgation of Regulations on Fees and Penalties, and the North West Gambling Amendment Bill. I herewith and on behalf of the Board, would like to thank the Management and staff of the North West Gambling Board for their commitment to effective regulation of the gambling industry in the Province and the sterling performance displayed during the year under review. I also appreciate the support we received during the period under review from the Portfolio Committee on Premier, Treasury and Enterprise Development, and the Department of Finance, Economy and Enterprise Development, our Licensees, SAPS and the Public of the North West Province, at large. Lavelle Vere Chairperson of the North West Gambling Board. 10

13 11

14 Over and above regulating the gambling industry in the province, the Board has the mandate to create economic opportunities for the Previously Disadvantaged Individuals. 12

15 4. Overview by the Chief Executive Officer Gambling remains one of the catalyst for development in the North-West Province, and as such, continued mechanisms, checks and balances are critical to keep the sector regulated. This is necessary in ensuring that Gambling Operators pay levies and taxes to government, illegal methods which leads to social ills such as human trafficking, prostitutions and global crimes like terrorism and money laundering are eradicated. In achieving the broader objectives of the Board through provision of responsible gambling regulation, it is of critical importance that we take stock of the performance of the Board for 2016/17 Financial Year. In order to realise the strategic objectives of the Board, the management has for the period under review developed and implemented an annual performance plan as per the performance report herein. The 2016/17 Financial Year has been yet another successful year for the Board although it came with its own fair share of challenges. Over and above regulating the gambling industry in the province, the Board has the mandate to create economic opportunities for the Previously Disadvantaged Individuals. In this light, the North West Gambling Board has licensed four (4) Casino operations, three (3) Route Operators and four (4) Bingo Operators, as well as seven (7) Bookmakers and two (2) Totalizators. The licensing of the new entrants in the industry is primarily aimed at empowering previously disadvantaged individuals. The diversification of this market has seen Bingo, Route and Bookmaker operations being steadily phased in to transform the industry. 13 GENERAL FINANCIAL REVIEW OF THE PUBLIC ENTITY The operations of the Board are currently funded through a grant from the Department of Economy and Enterprise Development. The Board has over years experienced an increase in its budget allocation to enable it to execute its mandate. The Board spent within the budget for the period under review, however, it should be noted that the Statement of Financial Performance for both 2015/16 Financial Year and 2016/17 Financial Year recorded a deficit at year end and this is mainly due to the Provision for Long Service Award and Performance Bonuses in terms of the Board s Human Resource Policy. CAPACITY, CONSTRAINTS AND CHALLENGES FACING THE BOARD The Board has during the period under review, managed to overcome its previous challenges pertaining to human capital capacity by filling all the critical positions as per the approved structure. This has enabled the Board to effectively and efficiently conduct its mandate. Issues ranging from illegal operations continue to be an area of concern which negatively affects the operations particularly in creating an enabling environment for legalized gambling, and further robbing the Province of much needed fiscus. The Board has further experienced an increase in litigation whereby the decisions of the Board regarding applications for licenses are take on review and this constrained the Board in achieving its pre-determined objectives.

16 The Board has also experienced a trend whereby its powers are consistently being challenged by the licensees when it comes to imposition of license conditions, despite this being the power vested on the Board by the North West Gambling Act. NEW OR PROPOSED ACTIVITIES In helping to deal with the triple challenges of poverty, unemployment and income inequalities confronting the marginalized, the Board has deemed it fit to register a discretionary Trust, with the primary objective being to manage contributions by the licensees towards socioeconomic development projects in the province. The diversification of the gambling industry in the province remains at the epicenter of the envisioned plans by the Board. In realizing this, the Board has conducted a benchmarking exercise with international jurisdictions with the aim of introducing greyhound racing in the province, which will be the first in the country. The Board is still on course to roll-out the fifth casino license which has been re-allocated to the North West province by the Honorable Minister of Trade & Industry, Rob Davies. SUPPLY CHAIN MANAGEMENT The Board has in place a fully-fledged Supply Chain Management unity as required by Regulation 16A of Treasury Regulations, 2005 and approved Supply Chain Management policy which is continuously reviewed to ensure effective and efficient management system. The Board has also in place relevant committees as required in terms of the relevant provisions of preferential procurement policy framework act, with the necessary terms of reference. These committees are pivotal in assisting the Board in implementing supply chain management processes. AUDIT REPORT MATTERS IN THE PREVIOUS YEAR AND HOW THEY WOULD BE ADDRESSED The Auditor-General of South Africa (AGSA) has performed the necessary audit procedures on financial and performance information to provide an audit opinion and an audit conclusion for the 2016/2017 Financial Year. Our Entity obtained an unqualified audit opinion, which is included in the Audit Report, with matters of emphasis being reported under the heading Matters relating to the Auditor s Report on pages five (05) and six (06) of the Report. The above-mentioned matters of emphasis related to some instances of irregular expenditure and disclosure of employee long service awards provisions on the financial statements, which have been prioritised on the Entity s 2016/2017 post audit plan of corrective actions to ensure that same do not recur in the following financial year. In addition to the above, we are pleased to report that the North West Gambling Board has successfully implemented all the necessary internal control measures which were planned in accordance with the 2015/2016 financial year Post Audit Action Plan. We have further embarked on a process of continuous monitoring of the effectiveness of these controls in order to ensure that the findings do not recur. OUTLOOK OR PLANS FOR THE FUTURE TO ADDRESS FINANCIAL CHALLENGES The Board is earnestly containing expenditure on non-essential items such as catering, consultants, communication and general administration in line with 14

17 the 2013/14 National Treasury Instruction 01 on Cost Containment Measures, and allocate a greater share of goods and services budgets towards its core functions. ECONOMIC VIABILITY Effects of the global political economy continue to have far-reaching economic ramifications for the world and countries of the global South. South Africa and North West Province in particular, is not immune from these effects. The three economic pillars which is fundamentally based on mining and agriculture and tourism have consistently shedding jobs. This has exacerbated the problem given the fact that our Province is predominantly rural where unemployment and poverty continue to be an area concern. The current economic trajectory has the potential to cause harm in industries such ours, and this will consequently result in the Board being unable to reach its predetermined targets in revenue collection, and this will in the long run threaten the current employment and future job prospects. ACKNOWLEDGEMENTS OR APPRECIATION On behalf of the management and staff of the North West Gambling Board, I would like to thank the Board for its undivided support and co-operation during the year under review. The dedication of the Portfolio Committee on Premier, Treasury, and Enterprise Development is highly appreciated with complementary commitment of our licensees and the public of the North West Province. It is obvious that the excellent work displayed in this report could not have been possible without the dedication and discipline of our staff and hope to see this continuing to change the landscape of the gambling industry in the North West Province. Fortune Sekgaphane Chief Executive Officer 15

18 5. Statement of Responsibility and Confirmation of the Accuracy of the Annual Report To the best of my knowledge and belief, I confirm the following: All information and amounts disclosed in the annual report is consistent with the annual financial statements audited by the Auditor General. The annual report is complete, accurate and is free from any omissions. The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury. The Annual Financial Statements (Part E) have been prepared in accordance with the GRAP standards applicable to the public entity. The Board is responsible for the preparation of the annual financial statements and for the judgments made in this information. The Board is responsible for establishing, and implementing system of internal control has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements. The external auditors are engaged to express and independent opinion on the annual financial statements. In our opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the Board for the financial year ended 31 March Fortune Sekgaphane Chief Executive Officer Date: 20 July 2017 Lavelle W Vere Chairperson of the NWGB Date: 20 July

19 6. Strategic Overview VISION To be a leading and socially conscious authority in the regulation of Gambling in the world. MISSION To provide effective and efficient regulatory services and maintain a gambling industry, which contributes to socio-economic growth and development. VALUES The North West Gambling Board s approach to service delivery is premised on the following values: Service Excellence; Integrity; Transparency; and Honesty. STRATEGIC OUTCOME ORIENTED GOALS OF THE BOARD Strategic Outcome Oriented Goal Regulate business activities in the Province to create a conducive legal, business and socioeconomic environment to business prosperity. Goal Statement Roll-out of Limited Payout Machines; Facilitation of discussion on the re-allocation of the 5th casino license; Licensing of Bookmakers and Totalizators; Combat illegal gambling in the Province; and Promotion of Responsible Gambling Justification Create an enabling environment for responsible licensing of all forms of gambling allowed in terms of the legislation. 17

20 7. Legislative and Other Mandates 4.1 CONSTITUTIONAL MANDATE Schedule 4 Part A of the Constitution provides that casino s, racing, gambling and wagering are functional areas of concurrent national and provincial legislative competence, which means provinces have the constitutional mandate to regulate the above mentioned activities. to publish Transformation Charters, to establish the Black Economic Empowerment Advisory Council and to provide for matters connected therewith. The Gambling Industry has adopted the compliance levels which the licensee must attain, and these are monitored annually, as they form part of the license conditions. 4.2 LEGISLATIVE MANDATES National Gambling Act, 2004, Act No.7 of 2004, as amended This is the national legislation which provide for the co-ordination of concurrent national and provincial legislative competence over matters relating to casinos, racing and wagering, and to provide for the continued regulation of those matters. It further establish certain uniform norms and standards applicable to national and provincial regulation and licensing of certain activities Broad Based Black Economic Empowerment Act, 2003 This Act establishes a legislative framework for the promotion of Broad Based Black Economic Empowerment. It empowers the Minister to issue codes of good Practice, North West Gambling Act, Act No.2 of 2001, as amended The North West Gambling Act provide for the regulation of gambling activities in the Province, establish a Board to control and manage gambling activities and set out powers and functions of the Board Public Finance Management Act, Act No.1 of 1999, as amended The objective of this Act is to regulate financial management in the National Government and Provincial Governments; to ensure that all revenue, expenditure, assets and liabilities of those governments are managed efficiently and effectively; and to provide for the responsibilities of persons entrusted with financial management in those governments and to provide for matters connected therewith. 18

21 4.2.5 Health and Safety Act 85 of 1993 The Act provides for the promotion and adherence of sound health and safety practices of employees and visitors at designated work places and establish an advisory council for occupational health and safety and matters connected therewith Financial Intelligence Centre Act 38 of 2001 The Act provides for the combating of money laundering activities and further provides for: (a) Registration of accountable and reporting institutions with the Financial Intelligence Centre Act. (b) Powers of supervisory bodies to conduct inspections. (c) Administrative sanctions that may be imposed by the Centre or supervisory bodies. (d) Establishes an appeal board to hear appeals against decisions of the Centre or supervisory bodies. 4.3 POLICY MANDATES The North West Gambling Board as established in terms of section 3 of the North West Gambling Act No.2 of 2001 is mandated to regulate gambling 19

22 The Board is classified as a schedule 3C public entity in terms of the Public Finance Management Act and is funded through a grant system by the Provincial Treasury and subscribes to all principles of good corporate governance as required in terms of Codes of Good Practice. and related activities in the North West Province in concurrence with the National Gambling Board. Through the above, the Board is expected to ensure that gambling in the Province is conducted or operated in a fair, honest and safe manner while providing protection to the general public against the latent demand for gambling through responsible gambling programmes. The Board is classified as a schedule 3C public entity in terms of the Public Finance Management Act and is funded through a grant system by the Provincial Treasury and subscribes to all principles of good corporate governance as required in terms of Codes of Good Practice. The North West Gambling Board, in compliance with the Public Finance Management Act, 1999 (Act 1 of 1999), as amended ( PFMA ), in particular provisions as contained in sections 50 and 51 thereof, has developed a value system to promote service excellence, integrity, transparency and honesty. The North West Gambling Board furthermore, adheres to good corporate governance principles as stipulated in the King Code of Corporate Practices and Conduct (King III Report) and the protocol for State Owned Enterprises on Corporate Governance. The North West Gambling Board, in its discharge of proper supervision and control of gambling and wagering activities in the province, ensures that through its Mission, its set objectives are met by determining, implementing, monitoring and enforcing matters relating to legislation, policy, Corporate Plans, gambling regulation and financial management. This Board subscribes to all principles (socioeconomic, technological and legal) of protecting the public against any unfair, unjustified, 20

23 dishonest and/ or unscrupulous or illegal practices in gambling, ensuring best practices of promoting responsible gambling, sound and sustainable economic benefits to the Provincial Government and maintenance of fair and socially responsible regulatory systems and processes in all gambling establishments licensed to operate in the North West Province. It can be concluded therefore that: It is a declared policy of the Board that all establishments where gambling games are conducted or operated, such games are licensed and controlled so as to better public engagement in gambling, promote safe entertainment, good morals and order in preservation of all relevant provincial government policies and laws; to render effective regulatory control which displays a high standard of professionalism and operates in clear recognition of the dictates of fairness, honesty, transparency and integrity in the best interests of the North West public, Licensees and the Provincial Government; to protect the public against any unfair, unjustified, dishonest and/or unscrupulous practices in the gambling industry, therefore ensuring a sound and sustainable equitable regulatory regime and processes that enhance responsible gambling, public confidence and empowerment of the previously disadvantaged communities, especially where these gambling establishments are located in the Province; and to only allow those who have been found suitable to operate or conduct gambling activities in the Province. 21

24 8. Structure of Committees of the Board MEC BOARD CORPORATE SERVICES COMMITTEE SOCIO- ECONOMIC DEVELOPMENT COMMITTEE COMPLIANCE COMMITTEE AUDIT COMMITTEE RISK MANAGEMENT COMMITTEE 22

25 9. Organisational Structure MEC BOARD CHIEF EXECUTIVE OFFICE CHIEF OPERATIONS OFFICE CHIEF FINANCIAL OFFICE LEGAL SERVICES CORPORATE SERVICES - Investigations and Licensing - Gambling Control - Gambling Audit and Systems - Finance - Supply Chain - Human Resources - Corporate Relations - Information Technology - Facility Management 23

26 24

27 Part B PERFORMANCE INFORMATION 1. Auditor-General s Report: Predetermined Objectives 2. Statement of Responsibility for the Performance Information 3. Executive Management 4. Situational Analysis 5. Strategic Outcome Oriented Goals 6. Performance Information by Programme 7. Summary of Financial Information 8. Statistics 25

28 1. Auditor-General s Report: Predetermined Objectives The Auditor-General of South Africa (AGSA) currently performs the necessary audit procedures on the performance information to provide an audit conclusion. The audit conclusion on the performance against predetermined objectives is included in the report to Management, with material findings being reported under the Report on the audit of the annual performance report heading, in the section on other legal and regulatory requirements of the Auditor s Report. Refer to page 131 of the Auditors Report, published as Part E: Financial Information. 26

29 2. Statement of Responsibility for Performance Information Statement of Responsibility for Performance Information for the Financial Year ended 31 March The Chief Executive Officer (CEO) is responsible for the preparation of the public entity s performance information, as well as for the judgements made in this information. The NWGB s performance information for the FY ended 31 March 2017 has been examined by the external auditors and their report is presented on page 131. The performance information of the entity set out on page 32 to page 72 was approved by the Board. The CEO is responsible for establishing and implementing a system of internal controls, designed to provide reasonable assurance as to the integrity and reliability of the performance information. In my opinion, the performance information fairly reflects the actual achievements against planned objectives, indicators and targets, as per the public entity s Strategic and Annual Performance Plan (APP) for the Financial Year ended 31 March Fortune Sekgaphane Chief Executive Officer 27

30 3. Executive Management Standing: FS Sekgaphane (Chief Executive Officer) and SM Motlhabane (Corporate Services Manager) Seated: S Motlhamme (Chief Financial Officer) and RJ Montshioa (Legal Services Manager) 28

31 4. Situational Analysis 1. SERVICE DELIVERY ENVIRONMENT The North West Gambling Board is listed as a schedule 3C Public Entity in terms of the Public Finance Management Act and is established in terms of the North West Gambling Act, 2001 (Act No.2 of 2001), as amended to regulate gambling activities in the North West Province. The business of the Board is to create an enabling environment for the gambling industry to thrive as a business while looking at its ability to create socioeconomic opportunities for the economically depressed and marginalised. The mandate further speaks to creating an enabling environment for leisure and entertainment activities. The Board is equally tasked with ensuring that the gambling industry is strictly regulated to avert socio-economic factors such as compulsive gambling and loss of value for responsible living standards. The Board has for 2016/2017 Financial Year identified the following strategic objectives: Creating an enabling environment for responsible licensing in all forms of gambling allowed in terms of the legislation; Improving efficiencies in the regulation of all forms of gambling; Monitoring and enforcing Compliance with the Broad Based Black Economic Empowerment Act and codes of Good Practice within the Industry; Strengthening the Institutional capacity of the Board. In this light, the Board managed to licence additional modes of gambling in the form of bingo, and bookmaker operations, and imposed licence conditions in which local Previously Disadvantaged Individuals hold 60% equity ownership of which 35% should be held by women, youth or disabled persons. The Board is proud to announce that the face of gambling industry is steadily changing as more local Previously Disadvantaged Individuals are now equity owners in the licence holders, albeit with few challenges. The challenges faced with the local Previously Disadvantaged Individuals is the fact that some of the shareholders are lured in the business for cosmetic purposes. The Board has established that in some instances this category does not understand the value and the worth of their shares. In addressing some of these challenges the Board has initiated an Annual Transformation Workshop where new entrants in the business are educated about the gambling industry, the BBBEE act and its dictates, including the Corporate side of the business. The Board has during the period under review experienced some resistance from some licensees who don t want to embrace transformation. This has been evidenced through trying to dictate to the Board which license conditions should be imposed in line with the Broad Based Black Economic Empowerment Act. 29

32 2. ORGANISATIONAL ENVIRONMENT The Board during the period under review experienced the resignation of the Chief Operations Officer who was responsible for overseeing operations department, namely, Investigations and Licensing, Gambling Control, and Audit and Systems. The afore-mentioned are now reporting directly to the Chief Executive Officer, as the Board has resolved to phase out the position of the Chief Operations Officer. The Board is currently sufficiently funded and this has enabled it to achieve its strategic objectives. 3. KEY POLICY DEVELOPMENTS AND LEGISLATIVE CHANGES The National Gambling Policy came into effect on 01 April 2016, and this policy seeks to review the gambling landscape in South Africa particular with regard to issues pertaining to Bingo, amongst others. The Policy seeks to create a national framework to regulate what is commonly known as Electronic Bingo Terminals (EBT s), which will include regulation of the overall number of Bingo licenses, including EBT s and Bingo seats in the country. The Minister of Trade and Industry has during the period under review promulgated Regulations regarding the maximum number of Casino licenses granted throughout the Republic and this resulted in the North West Province being re-allocated its fifth Casino license, which was lost to Gauteng Province during the redemarcation of provincial boundaries. The Board is in the process of putting measures in place to roll-out the fifth Casino license, however this has been constrained by a recently launched High Court application by the Casino Association of South Africa to review the decision of the Minister. 30

33 5. Strategic Outcome Oriented Goals In developing the strategic objectives of the Board, cognisance was taken of the Strategic Outcome Oriented Goals of the controlling Department of Finance, Economy and Enterprise Development. These are aimed at regulating business activities in the Province to create a legal, business and socio-economic environment conducive to business prosperity. STRATEGIC OBJECTIVES OF THE BOARD In response to the Medium Term Strategic Framework , the Board will focus mainly on Service Delivery Outcome 4: Decent employment through inclusive economic growth. It has identified the following strategic objectives: STRATEGIC OBJECTIVE 1 Create an enabling environment for responsible licensing of all forms of gambling allowed in terms of the legislation. STRATEGIC OBJECTIVE 2 Improve efficiencies in the regulation of all forms of gambling. STRATEGIC OBJECTIVE 3 Monitor and enforce compliance with the Broad-Based Black Economic Empowerment Act (BBBEE Act) and Codes of Good Practice within the Industry. STRATEGIC OBJECTIVE 4 Strengthening the institutional capacity of the Board. 31

34 6. Performance Information by Programme Programme 1 INVESTIGATIONS AND LICENSING Ms T Mathebula (Investigations and Licensing Manager) 32

35 Purpose: To ensure that every person involved in gambling in the North West Province is suitable and registered or licensed in terms of the North West Gambling Act, 2001 (Act No. 2 of 2001) as amended. STRATEGIC OBJECTIVES Create an enabling environment for responsible licensing of all forms of gambling allowed in terms of the legislation ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/2017 COMMENT ON DEVIATIONS The APP target was for the FY. There was an over achievement of 32 LPMs rolled out The Minister of DTI only reissued the 5th casino license to the Province recently on 10 June A final Draft RFA in relation to casino is ready for publishing Two (2) Bookmaker applications were granted at the Board sitting of 24 March 2017 which will be activate in the first quarter of FY 2017/ The Department over achieved with two (2) Totalizator branches 33

36 STRATEGIC OBJECTIVES Create an enabling environment for responsible licensing of all forms of gambling allowed in terms of the legislation. (continued) ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/2017 COMMENT ON DEVIATIONS None Three (3) of the approved Bingo operations have been pended due to the review process which is initiated by Galaxy and Peermont. The other two (2) Bingo operations will be activated by end of April None The Department received more application for employee registrations than what was anticipated. None The department received more Junket applications than what was expected None None Fully achieved 34

37 KEY PERFORMANCE INDICATOR Number of Limited Pay-Out Machines rolled-out Fifth Casino License granted and issued Number of Bookmaker premises rolled-out Number of Totalizator agencies and branches rolled-out ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/2017 COMMENT ON DEVIATIONS The APP target was for the FY. There was an over achievement of 32 LPMs rolled out The Minister of DTI only reissued the 5th casino license to the Province recently on 10 June A final Draft RFA in relation to casino is ready for publishing Two (2) Bookmaker applications were granted at the Board sitting of 24 March 2017 which will be activate in the first quarter of FY2017/ The Department over achieved with two (2) Totalizator branches 35

38 KEY PERFORMANCE INDICATOR Number of Bingo Operators rolled-out Registration of Gambling Employees Processing of all applications for registrations and acquisitions, removals and transfers Re-evaluation of Gambling Licenses ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/2017 COMMENT ON DEVIATIONS None Three (3) of the approved Bingo operations have been pended due to the review process which is initiated by Galaxy and Peermont. The other two (2) Bingo operations will be activate in the first quarter of FY 2017/2018 None The Department received more application for employee registrations than what was anticipated None The department received more Junket applications than what was expected None None Fully achieved 36

39 STRATEGY TO OVERCOME AREAS OF UNDER-PERFORMANCE STRATEGIC OBJECTIVES PERFORMANCE INDICATOR Create an enabling environment for responsible licensing of all forms of gambling allowed in terms of the legislation Fifth Casino License granted and issued Number of Bookmaker premises rolled-out Number of Bingo Operators rolledout STRATEGY TO ADDRESS UNDER-PERFORMANCE An RFA in relation to casino licenses will be published at the beginning of next quarter for public input before invitation for applications for casino license is published Two (2) Bookmaker premises has been approved by the Board and will be activated in the next quarter Two (2) Bingo operations will be activated at the beginning of the next quarter. Three (3) of the approved Bingo operations have been pended due to the review process which is initiated by Galaxy and Peermont. These will be activated provided the process has been finalised in favour of the Licensees LINKING PERFORMANCE TO BUDGETS: PROGRAMME 1: INVESTIGATIONS AND LICENSING BUDGET R / /17 EXPENDITURE 2015/16 R 000 (OVER)/ UNDER- EXPENDITURE R 000 BUDGET R 000 EXPENDITURE 2015/16 R 000 (OVER)/ UNDER- EXPENDITURE R (2 412) TOTAL (2 412)

40 6. Performance Information by Programme Programme 2 GAMBLING CONTROL Mr S Mogapi (Gambling Control Manager) 38

41 Purpose: To ensure that gambling is conducted in compliance with North West Gambling Legislation and in a fair and honest manner STRATEGIC OBJECTIVES ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/2017 COMMENT ON DEVIATIONS Improve efficiencies in the regulation of all forms of gambling None None None None Create an enabling environment for responsible licensing of all forms of gambling allowed in terms of the legislation None None None None 39

42 KEY PERFORMANCE INDICATOR Number of regulatory compliance inspections conducted at licensed premises to ensure compliance with Legislative Requirements and Licensing Conditions Number of Gambling equipment tested and evaluated to ensure compliance with National Regulator of Compulsory Specifications Technical Requirements ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/ None None COMMENT ON DEVIATIONS None None 40

43 KEY PERFORMANCE INDICATOR Number of unlicensed gambling operations identified and reported to the South African Police Services for criminal investigation and prosecution Number of offence notices issued to unlicensed gambling operators ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/ None None None None COMMENT ON DEVIATIONS LINKING PERFORMANCE TO BUDGETS: PROGRAMME 2: GAMBLING CONTROL BUDGET R / /17 EXPENDITURE 2015/16 R 000 (OVER)/ UNDER- EXPENDIRE R 000 BUDGET R 000 EXPENDITURE 2015/16 R 000 (OVER)/ UNDER- EXPENDIRE R TOTAL

44 6. Performance Information by Programme Programme 3 GAMBLING AUDIT AND SYSTEMS Mr K Monate (Gambling Audit and Systems Manager) 42

45 Purpose: To provide assurance that all levies and taxes from the licensees are accurate and complete and that compliance to legislation is adhered to. STRATEGIC OBJECTIVES ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/2017 COMMENT ON DEVIATIONS Improve efficiencies in the regulation of all forms of gambling None None Audits could not be performed due to revocation of the operators gambling licenses (Century Loop Rite Trade (Pty) Ltd and Bathusi (Pty) Ltd.) None None None None Monitor and enforce Compliance with the BBBEE Act and codes of good practice within the Industry Audits could not be performed due to revocation of the operators gambling licenses (Century Loop Rite Trade (Pty) Ltd and Bathusi (Pty) Ltd.) 43

46 KEY PERFORMANCE INDICATOR Number of systems/ IT Audits performed to ensure compliance with Gambling Legislature Requirements Number of Compliance and Revenue Audits performed to ensure compliance with Gambling Legislature Requirements Number of Annual Financial Statement Analysis Performed to ensure continual financial viability of the licensees ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/ None None COMMENT ON DEVIATIONS Audits could not be performed due to revocation of the operators gambling licenses (Century Loop Rite Trade (Pty) Ltd and Bathusi (Pty) Ltd.) None None 44

47 KEY PERFORMANCE INDICATOR Number of corporate governance audits performed to ensure compliance with King III report (codes of corporate governance) Number of BBBEE audits conducted to ensure compliance with BBBEE plans, North West Gambling Act and License conditions ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/2017 COMMENT ON DEVIATIONS None None Audits could not be performed due to revocation of the operators gambling licenses (Century Loop Rite Trade (Pty) Ltd. and Bathusi (Pty) Ltd.) 45

48 STRATEGY TO OVERCOME AREAS OF UNDER-PERFORMANCE STRATEGIC OBJECTIVES PERFORMANCE INDICATOR Improve efficiencies in the regulation of all forms of gambling Monitor and enforce Compliance with the BBBEE Act and codes of good practice within the Industry Number of Compliance and Revenue Audits performed to ensure compliance with Gambling Legislative Requirements Number of BBBEE audits conducted to ensure compliance with BBBEE plans, North West Gambling Act and License conditions STRATEGY TO ADDRESS UNDER-PERFORMANCE Both Operators (Century Loop Rite Trade (Pty) Ltd and Bathusi Investment (Pty) Ltd.) have been removed from the audit plan for the ensuing years Both Operators (Century Loop Rite Trade (Pty) Ltd and Bathusi Investment (Pty) Ltd. have been removed from the audit plan for the ensuing years LINKING PERFORMANCE TO BUDGETS: PROGRAMME 3: GAMBLING AUDIT AND SYSTEMS BUDGET R / /17 EXPENDITURE 2015/16 R 000 (OVER)/ UNDER- EXPENDIRE R 000 BUDGET R 000 EXPENDITURE 2015/16 R 000 (OVER)/ UNDER- EXPENDIRE R (491) TOTAL (491)

49 6. Performance Information by Programme Programme 4 LEGAL SERVICES Mr R J Montshioa (Legal Services Manager) 47

50 Purpose: To provide effective and efficient legal services and support to the Board STRATEGIC OBJECTIVES ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/2017 COMMENT ON DEVIATIONS Strengthening institutional capacity of the Board None None None None None None There was a need for Board meetings and Committee meetings due to non-compliance matters None None None None None None 48

51 KEY PERFORMANCE INDICATOR Number of reports on legal advice to be provided Number of reports on Contract with third parties reviewed Number of reports on status of litigation Number of Board and Committee meetings North West Gambling legislation reviewed ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/2017 COMMENT ON DEVIATIONS None None None None None None There was a need for Board meetings and Committee meetings due to non-compliance matters None None 49

52 KEY PERFORMANCE INDICATOR Number of reports on performance assessment of the Board Number of reports on assessment of Committees of the Board ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/ None None None None COMMENT ON DEVIATIONS LINKING PERFORMANCE TO BUDGETS: PROGRAMME 4: LEGAL SERVICES BUDGET R / /17 EXPENDITURE 2015/16 R 000 (OVER)/ UNDER- EXPENDIRE R 000 BUDGET R 000 EXPENDITURE 2015/16 R 000 (OVER)/ UNDER- EXPENDIRE R (162) (1 693) TOTAL (162) (1 693) 50

53 6. Performance Information by Programme Programme 5 FINANCE DEPARTMENT Ms S Motlhamme (Chief Financial Officer) 51

54 Purpose: To provide effective and efficient Financial Management System for the Board STRATEGIC OBJECTIVES Strengthening the institutional capacity of the Board ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/ None None None None None None None None None None None None 100% 100% 100% None None None None None None None None COMMENT ON DEVIATIONS KEY PERFORMANCE INDICATOR Number of Financial status reports prepared to ensure that the Board sustains its operations ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/ None None COMMENT ON DEVIATIONS 52

55 KEY PERFORMANCE INDICATOR Submission of Budget for FY 2017/2018 Number of Monthly bank reconciliations performed within seven (7) days to manage cash and cash equivalents of the Board Number of Monthly reconciliations of creditors and debtors to ensure payment and recoveries within 30 days Number of Monthly revenue reconciliations Number of Monthly revenue transfer to government by the 15th monthly % of Goods and service procured in line with Treasury Regulations, PFMA and PPPFA ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/ None None COMMENT ON DEVIATIONS None None None None None None None None 100% 100% 100% None None 53

56 KEY PERFORMANCE INDICATOR Number of status report on asset verification Number of spotcheck reports Four (4) Stocktake and variance analysis report ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/ None None None None None None COMMENT ON DEVIATIONS LINKING PERFORMANCE TO BUDGETS: PROGRAMME 5: FINANCE DEPARTMENT BUDGET R / /17 EXPENDITURE 2015/16 R 000 (OVER)/ UNDER- EXPENDIRE R 000 BUDGET R 000 EXPENDITURE 2015/16 R 000 (OVER)/ UNDER- EXPENDIRE R TOTAL

57 6. Performance Information by Programme Programme 6 CHIEF EXECUTIVE OFFICE Mr F Sekgaphane (Chief Executive Officer) 55

58 Purpose: To provide strategic leadership and general management of the organisation. KEY PERFORMANCE INDICATOR ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/2017 COMMENT ON DEVIATIONS Compile Corporate Plan and Annual Performance of the Board None None Number of Quarterly Performance Reports submitted None None Number of Internal and External Audits coordinated None None Annual Report submitted None None Number of Risk Management reports prepared None None 56

59 STRATEGIC OBJECTIVES ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/2017 COMMENT ON DEVIATIONS Strengthening the Institutional Capacity of the Board None None None None None None None None None None LINKING PERFORMANCE TO BUDGETS: PROGRAMME 6: CHIEF EXECUTIVE OFFICE 2015/ /17 BUDGET R 000 EXPENDITURE 2015/16 R 000 (OVER)/ UNDER- EXPENDIRE R 000 BUDGET R 000 EXPENDITURE 2015/16 R 000 (OVER)/ UNDER- EXPENDIRE R (238) TOTAL (238)

60 6. Performance Information by Programme Programme 7 CORPORATE SERVICES SUB-PROGRAMMES: 7.1 HUMAN RESOURCES MANAGEMENT 7.2 CORPORATE RELATIONS 7.3 INFORMATION TECHNOLOGY 7.4 FACILITY MANAGEMENT Ms S Motlhabane (Corporate Services Manager) 58

61 6. Performance Information by Programme Programme 7 CORPORATE SERVICES SUB-PROGRAMME: 7.1 HUMAN RESOURCES MANAGEMENT Ms D Makhudu (Human Resources Manager) 59

62 Purpose: To provide sound Human Resources Management and Development STRATEGIC OBJECTIVES ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/2017 COMMENT ON DEVIATIONS Strengthening the institutional capacity of the Board Two (2) positions were still vacant as at 31 March None None None None None None None None None None None None 60

63 STRATEGIC OBJECTIVES Strengthening the institutional capacity of the Board KEY PERFORMANCE INDICATOR Number of positions filled in line with the approved organisational structure Number of reports on benchmarking of employees salaries and benefits ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/2017 COMMENT ON DEVIATIONS None None None None ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/2017 COMMENT ON DEVIATIONS Two (2) positions were still vacant as at 31 March None None 61

64 KEY PERFORMANCE INDICATOR Number of leave reports Human Resources policy reviewed Number of performance appraisals reports Number of Employee Payroll reports Number of reports on training Number of reports on employee health and wellness Number of Employment Equity Report ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/2017 COMMENT ON DEVIATIONS None None None None None None None None None None None None None None 62

65 6. Performance Information by Programme Programme 7 CORPORATE SERVICES SUB-PROGRAMME: 7.2 CORPORATE RELATIONS Mr T Tatai (Corporate Relations Manager) 63

66 Purpose: To provide effective, professional support on Corporate Relations and promote Responsible Gambling STRATEGIC OBJECTIVES ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/2017 COMMENT ON DEVIATIONS To strengthen the institutional capacity of the Board None None None None The deviation is due to participation in Setsokotsane and YES Camp Provincial Events over and above the planned events The deviation is due to participation in Setsokotsane and YES Camp Provincial Events over and above the planned events None 64

67 KEY PERFORMANCE INDICATOR Number of reports on the implementation of the Communication Strategy Number of reports on media relation activities to profile the image of the organisation Number of events coordinated to profile the image of the organisation Number of reports on publications produced to market the services of the organisation ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/ None None COMMENT ON DEVIATIONS None None Participated in more unplanned campaigns due to the demands Participated in many unplanned Provincial events 65

68 KEY PERFORMANCE INDICATOR Number of awareness campaigns conducted to promote responsible gambling ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/2017 COMMENT ON DEVIATIONS None 66

69 6. Performance Information by Programme Programme 7 CORPORATE SERVICES SUB-PROGRAMME: 7.3 INFORMATION TECHNOLOGY Ms N Maake (IT Manager) 67

70 Purpose: To provide Information Technology support services STRATEGIC OBJECTIVES ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/2017 COMMENT ON DEVIATIONS Strengthening the institutional capacity of the Board None None None None None None None None None None None None None None KEY PERFORMANCE INDICATOR ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/2017 COMMENT ON DEVIATIONS Corporate Governance of ICT Policy Framework implementation None None Number of IT Policies to be formulated None None 68

71 KEY PERFORMANCE INDICATOR Number of reports on the ICT infrastructure upgrade Number of reports on connectivity services Number of reports on the website upgrade Number of reports on the ICT Service Desk (Helpdesk) Number of reports on the Enterprise Agreements (Software Licensing) ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/2017 COMMENT ON DEVIATIONS None None None None None None None None None None 69

72 6. Performance Information by Programme Programme 7 CORPORATE SERVICES SUB-PROGRAMMES: 7.4 FACILITY MANAGEMENT The Sub-Programme Facility Management has not been functional because of Facility Manager Position was only filled during the last quarter of the Financial year under review. Ms L Mokgoje (Facility Manager) 70

73 Purpose: To provide maintenance and security of facilities STRATEGIC OBJECTIVES Strengthening the institutional capacity of the Board ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/ None None COMMENT ON DEVIATIONS KEY PERFORMANCE INDICATOR Number of compliance reports on environmental, health regulations and security standards Number of reports on implementation of Records Management Policy, File Plan and Records Control Schedule ACHIEVEMENTS 2015/2016 PLANNED TARGET 2016/2017 ACHIEVEMENTS 2016/2017 DEVIATION FROM PLANNED TARGET TO ACHIEVEMENT FOR 2016/ None None COMMENT ON DEVIATIONS 71

74 LINKING PERFORMANCE TO BUDGETS: PROGRAMME CORPORATE SERVICES BUDGET R / /17 EXPENDITURE 2015/16 R 000 (OVER)/ UNDER- EXPENDIRE R 000 BUDGET R 000 EXPENDITURE 2015/16 R 000 (OVER)/ UNDER- EXPENDIRE R TOTAL

75 7. Summary of Financial Information REVENUE COLLECTED SOURCES OF REVENUE Gaming Levies, Taxes and Licences REVENUE TARGET R / /17 COLLECTION R 000 OVER/UNDER) COLLECTION R 000 REVENUE TARGET R 000 COLLECTION R 000 OVER/UNDER) COLLECTION R (34 257) TOTAL (34 257) The Board over collected by 6% in 2015/2016 Financial Year and under collected by 22% during 2016/2017 Financial Year. The 22% under collection is due to: There was a major decline in the Casino Levies, The Board revoked a number of licenses, Delay in the roll out of betting shops, The roll out of Bingo application finalised in June is subjected to immense litigations SUMMARY OF BOARD EXPENDITURE SOURCES OF REVENUE Grant Received BUDGET R / /17 EXPENDITURE R 000 OVER/UNDER- EXPENDITURE R 000 BUDGET R 000 EXPENDITURE R 000 OVER/UNDER- EXPENDITURE R TOTAL The Board received a grant of R during 2016/17 Financial Year. The approval to use the savings from previous years was granted and it increased the budget to R out of which only was not utilised as at 31 March

76 8. Statistics 8.1 LIST OF LICENSEES CASINOS LICENSEES TRADING NAME LOCATION Peermont Global (NW) (Pty) Ltd. Rio Hotel Casino and Convention Resort Klerksdorp Peermont Global (NW) (Pty) Ltd. Mmabatho Palms Hotel Casino Convention Resort Mmabatho Sun International SA Ltd. Sun City Casino Mogwase Sun International SA Ltd. The Carousel Casino & Entertainment World Temba BINGO OPERATIONS LICENSEES TRADING NAME LOCATION Santoscan (Pty) Ltd. NW Goldrush Bingo Rustenburg Santosat (Pty) Ltd. NW Goldrush Bingo Potchefstroom Galaxy Bingo North West (Pty) Ltd. N/A Brits Galaxy Bingo Moruleng (Pty) Ltd. N/A Rustenburg INDEPENDENT SITE OPERATOR Varloflash (Pty) Ltd. LICENSEES TRADING NAME LOCATION Grand Central Station Entertainment Centre Mahikeng 74

77 8.1.4 BOOKMAKERS LICENSEES TRADING NAME LOCATION Betting World (Pty) Ltd. N/A Sun Village Brits Klerksdorp Mahikeng Orkney Potchefstroom Rustenburg (Nelson Mandela Street) Rustenburg (Boom Street) Rustenburg Taxi Rank Zeerust Omphe Tshiamo Investment (Pty) Ltd. Betting World (Pty) Ltd. Brits (Industrial Area) Ikageng Gate Jouberton Letlhabile Marikana Vryburg Klerksdorp Lichtenburg Brits Zeerust Cornelius Johannes Coertze N/A Rustenburg Central Gaming Management (Pty) Ltd. Vendinet (Pty) Ltd. Vendivista (Pty) Ltd. Vendinet (Pty) Ltd. Lonivista (Pty) Ltd. Vryburg Potchefstroom Rustenburg Delareyville Dankopath (Pty) Ltd. G-Bets Klerksdorp Bapong Moruleng Ga-Rankuwa Potchefstroom Tlhabane VBet SA North West (Pty) Ltd. N/A Klerksdorp 75

78 8.1.5 ROUTE OPERATORS LICENSEES TRADING NAME LOCATION Vukani Gaming North West (Pty) Ltd. N/A Rustenburg Bon View Trading 111 (Pty) Ltd. North West Goldrush Gaming Mahikeng LIST OF SITE OPERATORS VUKANI GAMING NORTH WEST (PTY) LTD. NO. LICENSEES TRADING NAME LOCATION 1 Catharina van Sittert Noordkom Tavern Klerksdorp 2 Catharina van Sittert Noordkom Tab Agency Klerksdorp 3 William Mortimer Henning Santa FE Ladies Bar Entertainment 4 Grassa Batista Cosmos Zeerust 5 Jose Da Mata Caravela Portuguesa Restaurant Hartebeespoort Hartebeespoort 6 Daniel Concalves Pestana De Sun Pub & Grill Mahikeng 7 Tertius Esternhuizen Impala Hotel Potchefstroom 8 Rui Miguel Rocha Surrey Hotel Mahkeng 9 Molifi Cyprian Lekoma Protea Ebony and Ivory Jazz Bar Mahikeng 10 Magxolo Douglas Radebe Mthimkhulu Bar Lounge Mogwase 11 Joao Gabriel Nunes Gully s Jungle Bar Klerksdorp 12 Celistino Correta Gouvera Sun Restaurant Klerksdorp 13 Norman Diphoko Diphoko Tavern Phokeng 14 Manuel Francisco De Matos Francisco Restaurant Rustenburg 15 Phumelela Gaming and Leisure Ltd. Tab Potchefstroom Potchefstroom 16 Phumelela Gaming and Leisure Ltd. Tab Orkney Orkney 76

79 VUKANI GAMING NORTH WEST (PTY) LTD. (CONTINUED) NO. LICENSEES TRADING NAME LOCATION 17 Phumelela Gaming and Leisure Ltd. Tab Lichtenburg Lichtenburg 18 Phumelela Gaming and Leisure Ltd. Tab Brits Brits 19 Phumelela Gaming and Leisure Ltd. Tab Rustenburg Rustenburg 20 Phumelela Gaming and Leisure Ltd. Tab Rustenburg (Taxi Rank) Rustenburg 21 Phumelela Gaming and Leisure Ltd. Tab Sun Village Mogwase 22 Phumelela Gaming and Leisure Ltd. Tab Mahikeng Mahikeng 23 Betting World (Pty) Ltd. Betting World Rustenburg 24 Guiherme Mendse Catanho Quicksilver Pub & Grill Rustenburg 25 Susara Van Wyk Easy Eats Pub & Restaurant Klerksdorp 26 Samuel Ngwenya Bluemoon Entertainment Brits 27 Hester Cathrina Anastassiou Mamusa Restaurant & Kroeg Schweizer Reneke 28 James Edgar Arends Jammers Pub & Grub Bloemhof 29 Joao Manuel Aguiar Da Silva Pick & Eat Restaurant Rustenburg 30 Richard John Steyn Keg & Bull Restaurant Safarituine 31 Antoinettte Kealeboga Atkinson The Pitch Next Door Mahikeng 32 Candro Trade (Pty) Ltd. Surrey Eating House Mahikeng 33 Wildebeest Liquor (Pty) Ltd. Sunset Tavern Rustenburg 34 Tazz Motors CC Them Stones Pub & Grill Brits 35 Barend Jacobus Gnade Bullets Schweizer Reneke 36 Lehobo Nholdi Philemon Transvaal Hotel Rustenburg 37 Hirot Ashebir Malatjie Yonk Eating House Rustenburg 38 Lin Xuehua Malan Street Tavern Rustenburg 39 Lin Xuehua First Class Restaurant Rustenburg 40 Catherine Ntsatsi Masisi Fourways Tavern Mogwase 41 Pedro Goncalves Chadinha Royal Lounge Rustenburg 42 Pedro Goncalves Chadinha Royal Lush Lounge Rustenburg 77

80 VUKANI GAMING NORTH WEST (PTY) LTD. (CONTINUED) NO. LICENSEES TRADING NAME LOCATION 43 Daniel Petrus Potgieter Pretzels Freemanville 44 Celistino Correia De Gouveia Sun Night Club Klerksdorp 45 Thabo Dikhang Silver Cloud Restaurant Rustenburg 46 Hendrik Lambert Fick Otto Bert s Pub And Grill Potchefstroom 47 Amalima (Pty) Ltd. Apollo Entertainment Potchefstroom 48 Stephanie Coetzee Die Kakiebos Pub And Grill Koster 49 Rabelani Vennon Ramakulukusha Venice Brits 50 Qinglong Lin Rejababotlhe Restaurant Rustenburg 51 Manzac Productions And Events (Pty) Ltd. Maboneng Taung 52 Antonio Gouveia De Lima Ultra Jazz Lounge Potchefstroom 53 Nadia-Ann Pretorius Diamond Saloon Restaurant Christiana 54 Pienza Business Investments Cc Brits Tavern Brits 55 Ivelin Nikolaev Nenov Phoenix Liquor Restaurant Rustenburg 56 Andries Stephanes Raaths Die Till Tavern Rustenburg 57 Viwe Samuel Ncalo Jazz Tavern Rustenburg 58 Maria Susanna Gertruida Aires Kolas Restaurant Rustenburg 59 Manuel Moreira Da Silva Mota Molefe Restaurant Tlhabane 60 Kamel Belmedani Oklahoma Restaurant Rustenburg 61 Henmor Investment (Pty) Ltd. Santa Fe 2 Hartebeespoort 62 Vincent Medupe Sleek s Tavern Koster 63 Jackie Sekgwela J.D.S. Tavern Brits 64 Shadrack Williams Moretele Bar Lounge Moretele 65 Omphe Tshiamo Investment (Pty) Ltd. Betting World (Pty) Ltd. Potchefstroom 66 Omphe Tshiamo Investment (Pty) Ltd. Betting World (Pty) Ltd. Klerksdorp 78

81 VUKANI GAMING NORTH WEST (PTY) LTD. (CONTINUED) NO. LICENSEES TRADING NAME LOCATION 67 Omphe Tshiamo Investment (Pty) Ltd. Betting World (Pty) Ltd. Letlhabile 68 Omphe Tshiamo Investment (Pty) Ltd. Betting World (Pty) Ltd. Marikana BON VIEW TRADING 111 (PTY) LTD. TRADING AS, NORTH WEST GOLDRUSH GAMING NO. LICENSEES TRADING NAME LOCATION 1 Joubert Hendrik Johannes Zama Zama Tavern Bloemhof 2 Nelson Floretino Duarte Porto s Tavern Potchefstroom 3 Kanene Thomas Moagaesi Thaba Bar Lounge Madibogo 4 Franks Sello Chauke Sijo s Tavern Mathibestad 5 Ishmael Morake Mooketsi Chaichos Inn Gopane 6 Itumeleng Simon Sima Itumeleng Liquor Restaurant Taung 7 Willem van der Merwe Tom Dick & Harry Sports Bar Hartebeespoort 8 Tlharesane Daniel Segwagwa Itlotle Restaurant Morokweng 9 Jose-Paulo Fernandes De Andrade Theo s Sports Bar Swartruggens 10 Francisco Jose Jardim Ponte Franks Sports Bar Potchefstroom 11 Kholiwe Regina Letlhogile Reggy s Tavern Taung 12 Mmathaba Annah Rakoma Bridge s Tavern Saulspoort 13 Herman Tony Sellwe Curty s Tavern Rustenburg 14 Gopolang Mashome Phola Park Mahikeng 15 Alfrea Gabonewe Mogwasi Semunye Tavern Lehurutshe 16 Phumelela Gaming and Leisure Ltd. Tab Klerksdorp Klerksdorp 17 Phumelela Gaming and Leisure Ltd. Tab Zeerust Zeerust 18 Ndo Jeremiah Doyi Central Restaurant Koster 19 Gabolwelwe Kgomotso Elizabeth Mosina P.S.J.M. Zonke Bonke 79 Makapanstad 20 Hazel Strauss Duitswes Kombuis Hartebeespoort 21 Montsiwagae Pogisho John Morula Launch Schweizer Reneke

82 BON VIEW TRADING 111 (PTY) LTD. TRADING AS, NORTH WEST GOLDRUSH GAMING (CONTINUED) NO. LICENSEES TRADING NAME LOCATION 22 Chiloane Dricca Lethabong Tavern Brits 23 Matseke Piet Ranko Ndofaya Tavern Klipgat 24 Frederick Jacobus Marais Frekkies Sports Bar Silkaatsnek 25 Poroti Reuben Motsepe Maphelong Pub & Grill Hammanskraal 26 Phineas Thapelo Setshoane Botsalano Cafe & Restuarant Rustenburg 27 Tlharesane Daniel Segwagwa Ramatlhale Tavern Morokweng 28 Robertina Gaborekwe Motaung Nono s Restaurant Brits 29 Mashome Gopolang Dichaba Kopano Tavern Mahikeng 30 Vuisile Abram Mjezu Vuku Inn Ventersdorp 31 Mahabae Suzan Modisadife Suzan s Tavern Wolmaranstad 32 Stephen Bonke Phiri Love and Peace Tavern Saulspoort 33 Moarabi Daniel Khutswane Badibone Kae Inn Zeerust 34 Ntshimane Isaac Tlhapi Tlhapi s Tavern Klipgat 35 De Sousa Manuel Inacio Capelo Godfather Restaurant Stilfontein 36 Molote Kgomotso Anna Radiate Restaurant Rustenburg 37 Jose Antonio Rodrigues Nikita Pub & Grill Brits 38 Petronella Magrieta van Vuuren Blue Star Tavern Ventersdorp 39 Kuki Miriam Cwati Thandeka s Tavern Klipgat 40 Santosat (Pty) Ltd. Goldrush Bingo Potchefstroom 41 Santoscan (Pty) Ltd. Goldrush Bingo Rustenburg 42 On The Go Liquor (Pty) Ltd. Promosa Restaurant Potchefstroom 43 Letlotlo Keorapetse Masia Bonang Masia Restaurant Rustenburg 44 Toriglo (Pty)Ltd. G-Bets Potchefstroom 45 Toriglo (Pty)Ltd. G-Bets Ga-Rankuwa 46 Toriglo (Pty)Ltd. G-Bets Klerksdorp 80

83 BON VIEW TRADING 111 (PTY) LTD. TRADING AS, NORTH WEST GOLDRUSH GAMING (CONTINUED) NO. LICENSEES TRADING NAME LOCATION 47 Toriglo (Pty)Ltd. G-Bets Moruleng 48 Toriglo (Pty)Ltd. G-Bets Tlhabane 49 Fernandes Jose Antonio Super-Hot Food & Pub Tlhabane 50 Esau Maleshane Loate Graceland Restaurant Mahikeng 51 Moleko s Tavern cc Moleko s Tavern- Oppi Deck Brits 52 Roadways Lodge (Pty) Ltd. Roadways Lodge Mahikeng 53 Sandile Agcrey Tyatya Masimong Sports Bar cc Potchefstroom 54 Christian Nnamdi Okwaranwa The Star Restaurant Klerksdorp LIST OF TOTALIZATOR PHUMELELA GAMING AND LEISURE LTD. NO. LICENSEES NUMBER OF BRANCHES NUMBER OF AGENCIES 1 Phumelela Gaming and Leisure Ltd Brits, Klerksdorp, Lichtenburg, Mahikeng, Orkney, Potchefstroom, Rustenburg Taxi Rank, Rustenburg, Zeerust, Sun Village Hartebeespoort, Letlhabile (Zone 1), Noordkom Centre, Ventersdorp, Brits Industrial Area, Jouberton, Ikageng Gate, Letlhabile (North West Letlhabile Mall), Brits City, Marikana, Vryburg, Klerksdorp, Lichtenburg, Zeerust 81

84 AMUSEMENT MACHINE OPERATORS LICENSEES LOCATION NUMBER OF MACHINES Fantasia Family Entertainment Centre Matlosana Mall, Klerksdorp 28 Fantasia Family Entertainment Centre Mooirivier Mall, Potchefstroom 21 Fantasia Family Entertainment Centre Rio Casino, Klerksdorp 25 The Magic Company (Pty) Ltd. Sun City Casino, Mogwase 75 The Magic Company (Pty) Ltd. Carousel Casino, Temba HOLDERS OF CERTIFICATE OF SUITABILITY REGISTRANTS DDL Security Services (Pty) Ltd. trading as, 24/7 Security Services CA Nizetich CC trading as, Deltatronics Technology and Procurement Holdings (Pty) Ltd. Kalula Trade 23 (Pty) Ltd. Lithotech Sales Pretoria (Pty) Ltd. Top Print CC Repro Print (Pty) Ltd. Protea Playing Card CC TCS John Huxley (Pty) Ltd. Dimension Data Integrated Security Solutions (Pty) Ltd. Dementor Surveillance and Security CC Fidelity Security Services (Pty) Ltd. Bidvest Protea Coin (Pty) Ltd. Ioannis Eliades Chartered Certified Accountants (Pty) Ltd. TYPE OF SERVICES Security Services Surveillance Systems Surveillance Systems Surveillance Systems Printing Printing Printing Printing and Supplier Supplier and Maintenance Security Services Surveillance Systems Security Services Security Services Gambling Related Services 82

85 8.3 EMPLOYEE REGISTRATIONS LICENSEES STAFF HEAD COUNT PERMANENT REGISTRATION TEMPORARY REGISTRATION The Carousel Casino Sun City Casino Rio Casino Mmabatho Palms Casino Phumelela Gaming /7 Security Services Vukani Gaming Goldrush Gaming Site Operators Goldrush Bingo Galaxy Bingo Betting World Central Gaming G-Bets V-Bet CJ Coertze Bidvest Protea Coin Omphe Tshiamo Grand Central Station Entertainment Centre Total

86 8.4 GAMBLING MACHINES AND TABLE STATISTICS Registered Gambling Tables by Unit SUN CITY CASINO 51 MMABATHO PALMS 9 THE CAROUSEL CASINO 25 RIO CASINO 11 Figure Registered Gambling Machines by Unit SUN CITY CASINO 645 MMABATHO PALMS 155 THE CAROUSEL CASINO 700 RIO CASINO 274 Figure Registered Tables by Gambling Mode Figure 3 BLACKJACK TABLES 30 ROULETTE TABLES 40 POKER TABLES 8 PUNTO BANCO TABLES 7 BACCARAT TABLES 11 84

87 REGISTERED GAMBLING TABLES SUN CITY CASINO MMABATHO PALMS CASINO THE CAROUSEL CASINO RIO CASINO Black Jack Tables Roulette Tables Poker Tables Punto Banco Tables Baccarat Tables TOTAL APPROVED GAMBLING EQUIPMENT MANUFACTURER NUMBER OF LOCs APPROVED AGI Africa 45 Aristocrat Technologies Africa 23 Aruze Gaming Africa 91 Atomic Gaming 20 Bally Gaming Africa 218 BetTech Gaming 02 CDP Gaming Technologies 03 Cerino Trading 03 Custom Gaming Solutions 04 Extreme Sports Betting 01 GPI Management Services 06 IGT Africa 312 Omega Gaming 54 Simplicit E Gaming Solutions 25 TCS John Huxley 03 Turfsport 03 UmAfrica Gaming Technologies 77 Vukani Gaming 9 TOTAL NUMBER OF LOCs APPROVED

88 8.5 ILLEGAL GAMBLING STATISTICS STATISTICS TOTAL Number of Raids/Closures 07 Confiscated Gambling Computers 234 Confiscated Gambling machines 274 Gambling Machines Destroyed 0 Gambling Tables Destroyed 0 Number of Gambling Machines in the Warehouse

89 8.6 REVENUE PERFORMANCE AND STATISTICAL ANALYSIS FOR LICENSEE CASINOS SOURCE % CHANGE Turnover % GGR % Levies % Monthly Levy Comparison Months Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Figure 4 87

90 Contribution by Machines and Tables SOURCE TOTAL NUMBER TURNOVER GGR LEVIES LEVIES' PERCENTAGE Machines % Tables % Total % Levy Contribution by Machines and Tables MACHINES 84% TABLES 16% Figure 5 88

91 8.6.2 LIMITED PAYOUT MACHINES (LPMs) SOURCE % CHANGE Turnover % GGR % Levies % Contribution by Machines and Tables Months Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Figure 6 89

92 8.6.3 BINGO OPERATIONS SOURCE % CHANGE Turnover % GGR % Levies % Monthly Tax Comparison Months Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Figure 7 90

93 8.6.4 TOTALIZATOR SOURCE % CHANGE Turnover % GGR % Levies % Monthly Tax Comparison Months Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Figure 8 91

94 Contribution by Agencies, Branches and Telebet SOURCE TOTAL NUMBER TURNOVER GGR LEVIES LEVIES' PERCENTAGE Branches % Agencies % Telebet % Total % Percentage Contribution BRANCHES 71% AGENCIES 16% TELEBET 13% Figure 9 92

95 8.6.5 BOOKMAKERS SOURCE % CHANGE Turnover % GGR % Levies % Monthly Tax Comparison Months Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Figure 10 93

96 Tax contribution by Horseracing and Sport SOURCE TURNOVER GGR TAXES PERCENTAGE CONTRIBUTION (TAX) Horse racing % Sport % Total % Percentage Contribution SPORT 91% HORSE RACING 9% Figure 11 94

97 Part C GOVERNANCE 1. Introduction 2. Portfolio Committee 3. Executive Authority 4. The Board 5. Risk Management 6. Internal Control Unit 7. Audit Committtee 8. Internal Auditors 9. Compliance with the Laws and Regulations 10. Fraud and Corruption 11. Minimising Conflict of Interest 12. Code of Conduct 13. Health, Safety and Environmental issues 14. Company Secretary 15. Socio Economic Development 16. Audit Committee Report 95

98 1. INTRODUCTION The North West GambIing Board is a statutory body established in terms of the provisions of the section 3 of the North West Gambling Act, 2001 (Act No. 2 of 2001), as amended, to regulate gambling activities in the North West Province. This institution is also classified as a Schedule 3C Public Entity, in terms of the Public Finance Management Act. The Board is led by Directors appointed in the terms of section 5 of the North West Gambling Act serving the role of an Accounting Authority in terms of the Public Finance Management Act. The North West Gambling Board is an agent of the Department of Economy and Enterprise Development accountable to the Provincial Legislature. In this regard, the functions, objectives and responsibilities of the North West Gambling Board are guided by the North West Gambling Act, 2001 (Act No. 2 of 2001) as amended; the National Gambling Act, 2004 (Act No. 7 of 2004), the Public Finance Management Act, 1999 (Act No.1 of 1999) as amended, the Financial Intelligence Centre Act (Act No. 38 of 2001) as amended, and other related Legislation, Regulations and Rules. 2. PORTFOLIO COMMITTEE As part of the oversight role performed by the Provincial Legislature, the North West Gambling Board held series of meetings with the Portfolio Committee on Premier, Finance, Economy and Enterprise Development to present Annual Report for the 2015/16 FY, Quarterly Reports for the 2016/17 FY and a draft for the Annual Performance Plan for 2017/18 FY. This interaction with the Portfolio Committee has gone a long way to improve the performance of the organisation, to address the financial and operational challenges experienced and to provide guidance and advise to the Board. 3. EXECUTIVE AUTHORITY During the period under review, the North West Gambling Board submitted four quarterly reports to the Executive Authority on 14 July 2016, 17October 2016, 11 January 2016 and 13 April 2017, respectively. Composition of the Board Members of the Board, from various fields of expertise, are appointed by the MEC responsible for Finance, Economy and Enterprise Development in the Province. These include: (i) legal practitioners; (ii) accountants or auditors registered in terms of the Public Accountants and Auditors Act, 1991 (Act No. 80 of 1991); (iii) persons with knowledge and experience in the field of welfare or socio-economic development; (iv) persons with knowledge of, and active involvement in, the tourism industry; (v) persons with proven business acumen; (vi) persons with knowledge of the gambling industry; and (vii) members designated from the Department of Finance, Economy and Enterprise Development and the Department of Public Safety and Transport. During the period under review, the Board consisted of seven (7) members excluding the Chief Executive Officer who is an ex officio, and carried two (2) vacancies to be filled in terms of the provisions of section 5 of the North West Gambling Act,

99 Members of the Board Mr LW Vere Chairperson Ms LMI Seepe Deputy Chairperson Mr TK Mathe Member Ms N Maharaj Member Col S Reddy Member Mr N Oliphant Member Ms M Jansen-Mwase Member Mr RJ Montshioa Company Secretary Mr FS Sekgaphane Chief Executive Officer 97

100 4. THE BOARD 4.1 The Role of the Board The Board performs the following functions as prescribed in section 4 of the North West Gambling Act, 2001 as amended, and the National Gambling Act, 2004 (Act No. 7 of 2004): (a) (b) (c) to oversee gambling activities in the Province; to advise the MEC on any matter referred to it by the MEC relating to the control of gambling in the Province; to exercise such powers and perform such functions and duties as may be assigned to the Board in terms of this Act or any other law; and in particular to:- (i) invite applications for licenses in terms of this Act; (ii) consider and dispose of applications for licenses in such a manner and at such time and place as it may from time to time determine; (iii) grant, renew, amend, refuse, suspend or revoke licenses under this Act; (iv) impose conditions in respect of any licenses at any time; (v) revoke licenses granted under the Ordinance; (vi) acquire, hold, hire, let and alienate intellectual, movable and immovable property; (vii) open and maintain bank accounts; (viii) appoint staff and do all things incidental thereto; (ix) (x) (xi) conclude and perform contracts; participate in or conduct quasi-judicial and administrative proceedings; make and enforce rules for the conduct of its proceedings and hearings; (xii) receive, expand and generally administer funds; collect and administer, in accordance with the provisions of the Act, levies and fees imposed by or under the North West Gambling Act, 2001 (Act No. 2 of 2001), as amended; (xiii) make rules and regulations governing the licensing, conduct and operation of any gambling activity or business; (xiv) conduct or cause to be conducted hearings, investigations and enquiries with regard to any matter falling within the scope of its functions; (xv) apply to court to place any gambling operation under supervisory management; (xvi) enter into agreement with or obtain the assistance of any department or organ of State, including the South African Police Service, to conduct or assist it in conducting its investigations; (xvii) obtain information from license holders and other persons and agencies; (xviii) conduct an ongoing study of, and investigation into gambling throughout the Province and elsewhere, to keep abreast of developments in the industry; 98

101 (xix) (xx) (xxi) (xxii) (xxiii) (xxiv) determine minimum internal control systems for license holders, including accounting and reporting procedures and any other procedures or systems, whether computerised or not; impose penalties for any breach of any of the rules or regulations made under the North West Gambling Act, 2001 (Act No. 2 of 2001), as amended, which may include fines or the suspension of or the imposition of conditions relating to any license issued in terms of the North West Gambling Act, 2001 (Act No. 2 of 2001), as amended; determine fees and charges in respect of investigations, enquiries and any other function performed by the Board; collect and administer interest and penalties imposed by or under this Act; undertake or cause to be undertaken tests on equipment and gambling devices used or to be used in gambling activities and to recover the costs thereof from any person at whose instance, such tests are undertaken; issue summonses for the appearance of persons or the production of books, documents or things in connection with applications, hearings, investigations or enquiries under the North West Gambling Act, 2001 (Act No. 2 of 2001), as amended, including the rules or regulations made thereunder; (xxv) (xxvi) establish field or branch offices; establish and administer funds for the proper administration of this Act; (xxvii) consult with any person or employ consultants regarding any matter relevant to the performance of its functions on such terms and conditions as the Board may determine; (xxviii) compile a list of persons who are to be excluded or rejected from specified licensed premises and of those who are prohibited from partaking in specified gambling; (xxix) make rules governing the licensing, conduct and operation of amusement games, including the licensing thereof, and in consultation with the responsible member of the Executive Council and Treasury to impose license fees therefore; (xxx) generally exercise the powers and perform the functions and duties specified in this Act or assigned to it by any other law. 4.2 Board Charter The Board operates with an approved Board Charter that sets out the composition, membership and size of the Board. The Charter further sets out the role and responsibilities of the Board with regard to the performance and accountability of the entity, monitoring and implementing the corporate plan, laws, regulations, policy and codes of business practice. 99

102 4.3 Objectives for the period under review: 2016/17 The Board set the following objectives for the period under review, in line with its mandate derived from the North West Gambling Act, 2001 (Act No. 2 of 2001) as amended, the Regulations and the National Gambling Act, 2004 (Act No. 7 of 2004): (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) (xiii) to create an enabling environment for responsible licensing of all forms of gambling allowed in terms of the legislation; to roll out Limited Payout Machines and Bingo Operations; to follow up on the possibility of the Fifth Casino license in the Province; to roll out bookmaker licenses; to improve efficiencies in the regulation of all forms of gambling; to develop and maintain effective regulatory mechanisms and provide for all necessary resources; to ensure adequacy of legislation; to finalise amendments to gambling legislation; to review Information Security and Systems; to encourage and promote BBBEE within the industry through implementation of approved industry specific BBBEE targets; to ensure that gambling equipment operates in compliance with legislation and SABS technical standards; to conduct legal compliance inspections on licensed gambling operations; to ensure that gambling activities are conducted in a fair and honest manner; (xiv) to combat all forms of illegal gambling and conduct special investigations referred by other departments; (xv) to provide assurance that the gambling levies are accurately calculated; to provide assurance that the Licensees maintain a level of continual financial suitability and comply with legislative requirements; (xvi) to ensure that Licensees internal control procedures mitigate gambling regulatory risks and are in line with gambling legislation; (xvii) to provide legal advice and support to the Board and Management; (xviii) to provide the Board with secretariat functions; (xix) to ensure an effective and efficient legal framework; (xx) to ensure corporate governance by Management and the Board; (xxi) to ensure efficient financial management; (xxii) to ensure that internal and external audits are conducted; (xxiii) to ensure compliance with internal controls and other relevant legislation; (xxiv) to ensure efficient and effective supply chain management; (xxv) to provide and maintain an effective, upto-date and secure information technology system for the organisation; (xxvi) to ensure the provision of effective and efficient human resource support services; and (xxvii) to ensure the formulation and implementation of HR strategies to enhance education, training, development and retention of staff. 100

103 The Board s report on achievements in relation to the above objectives is contained in the general overview on pages 29 to Corporate Governance The core values of the North West Gambling Board are to embrace the principles of good corporate governance, as contained in the King III Report on Corporate Governance and the precepts of the Public Finance Management Act 1999, (Act No. 1 of 1999), supported by Treasury Regulations. 4.5 Role, functions and objectives The Board is generally responsible for the regulation of gambling activities in the North West Province, including the performance of the following functions: (i) (ii) (iii) (iv) to advise the MEC responsible for Finance, Economy and Enterprise Development on any matter referred to it by the MEC relating to the control of gambling in the Province; to invite, receive, consider, grant or refuse applications for licenses in terms of the North West Gambling Act, 2001 (Act No. 2 of 2001), as amended; to collect and administer gambling levies and fees under the North West Gambling Act, 2001 (Act No. 2 of 2001), as amended; to make rules and regulations governing the licensing, conduct and operation of any gambling activity or business; (v) (vi) (vii) to conduct ongoing studies and investigations into gambling throughout the Province and elsewhere; to undertake or cause to be undertaken tests on gambling equipment and gambling devices used or to be used in gambling activities; and to compile and maintain a list of persons excluded from casinos in the Province. The National Gambling Act, 2004 (Act No. 7 of 2004) sets certain norms and standards to be followed by Provincial Gambling Boards in the regulation of gambling in their respective jurisdictions. As a provincial regulator, the Board is enjoined to implement the provisions of the North West Gambling Act, 2001 (Act No. 2 of 2001), as amended. As a statutory body, the Board performs its functions in terms of the North West Gambling Act, 2001 (Act No. 2 of 2001), as amended. The North West Gambling Regulations of 2002 provide certain procedural prescriptions and process requirements with regard to the implementation of the North West Gambling Act, 2001 (Act No. 2 of 2001), as amended. 101

104 Composition of the Board Members (1 April March 2017) Mr LW Vere NAME Ms LMI Seepe Ms N Maharaj Mr TK Mathe Mr NI Kunene Mr HM Mashao Col. S Reddy DESIGNATION DATE APPOINTED STATUS QUALIFICATIONS Chairperson Active Master of Laws (LLM) Bachelor of Laws (LLB) Deputy Chairperson AREA OF EXPERTISE BOARD DIRECTORSHIP OTHER COMMITTEES Legal None None Active BEd Business None Chairperson of the Corporate Services Committee Member Active B.Proc, LLB, Accounting for Public Entities, Corporate Governance Member Active CA (Chartered Accountant) RA (Registered Auditor) Resigned from the Board 01 November 2016 Recalled as Board Member on 20 February 2017 Legal Not Active BCom Representative of Department of Finance Not Active BCom Representative of Department of Economy and Enterprise Development South Rand Hospital Chairperson of the Compliance Committee Member of Risk Committee Accountant None Chairperson of the Audit Committee Member of the Compliance Committee None None Member of Audit Committee Member of Corporate Services Committee Chairperson of the Risk Committee Member Active LLB - None Member of Corporate Services Committee Member of Compliance Committee NUMBER OF MEETINGS ATTENDED

105 NAME DESIGNATION DATE APPOINTED STATUS QUALIFICATIONS AREA OF EXPERTISE BOARD DIRECTORSHIP OTHER COMMITTEES NUMBER OF MEETINGS ATTENDED Ms Jansen- Mwase Mr N Oliphant Member 01 November 2016 Member 20 February 2017 Active Active B. Admin (Hons) National Diploma Representative of Department of Finance Representative of Department of Economy and Enterprise Development None None Member of Corporate Services Committee Chairperson of the Risk Committee (23 February 2017)

106 Committees of the Board NUMBER OF MEETINGS HELD COMPLIANCE COMMITTEE NUMBER OF MEMBERS ATTENDED NUMBER OF MEETINGS ATTENDED NAMES OF MEMBERS of 6 Ms N Maharaj CORPORATE SERVICES COMMITTEE RISK COMMITTEE 6 of 6 Mr TK Mathe 3 of 6 Col. Reddy (Appointed to the Committee on 30 June 2016) of 3 Ms LMI Seepe 3 of 3 Mr H Mashao (Recalled as Board member on 20 February 2017) 3 of 3 Col. Reddy (Appointed as member of the Committee on 30 June 2016) 1 of 3 Ms M Jansen-Mwase (Appointed as member of the Committee on 23 February 2017) of 1 Mr H Mashao (Recalled as Board member on 20 February 2017) 1 of 1 Mr M Mokgobinyane 1 of 1 Ms N Maharaj 104

107 NUMBER OF MEETINGS HELD AUDIT COMMITTEE NUMBER OF MEMBERS ATTENDED NUMBER OF MEETINGS ATTENDED of 5 Mr TK Mathe NAMES OF MEMBERS 1 of 5 Mr NI Kunene (Resigned from the Board on 01 November 2016) 5 of 5 Mr Z Mothibe 4 of 5 Mr M Mokgobinyane 5 of 5 Ms T Moromane 5 of 5 Ms O Diutlwileng 105

108 Remuneration of Board Members NAME REMUNERATION OTHER ALLOWANCES OTHER REIMBURSEMENTS TOTAL Mr LW Vere Ms LMI Seepe Mr TC Kgomo Dr N Maharaj Mr TK Mathe Col S Reddy Mr HM Mashao Mr NI Kunene Ms TL Moromane Ms O Diutlwileng Mr M Mokgobinyane Mr Z Mothibe RISK MANAGEMENT The Board adopted a formal approach to risk assessment. At the start of each FY, a risk assessment workshop is conducted. The process allows each department to identify their risks in line with the Corporate Plan. All departmental risks are consolidated in an organisational Risk Register. Risks identified are discussed, rated and updated in the Risk Register in terms of priority, which constitutes the basis for the Internal Audit Plan for the period under review, as well as a three-year rolling plan. A Risk Mitigation Plan was developed to ensure risks identified are mitigated continuously. Risk mitigation progress reports are prepared quarterly for consideration by the Risk Committee and the Board. Risk Assessment for 2016/2017 FY was conducted during September The identified risks were rated and formed the basis for the Internal Audit Plan for 2016/2017 FY. The risks, as prioritised are managed on a regular basis. The table below depicts the risks for the Board for the year under review. 106

109 Risks RISK NO. STRATEGIC OBJECTIVE 1. Create an enabling environment for responsible licensing of all forms of gambling allowed in terms of the legislation. (continued) RISK DESCRIPTION CAUSE IMPACT LIKELIHOOD TREATMENT PLAN Proliferation of unlicensed and illegal gambling activities. (continued) 1. Ineffective implementation of the illegal gambling strategy. 2. Inadequate tools and capacity to identify Illegal gambling activities. 3. investigate and prosecute illegal gambling operations and prolonged investigations. 4. Migration from machines to computer based gambling and failure to keep up with technological advancement in the gambling industry. Critical. Likely. 1. Appointment of peace officers. 2. Review and implementation of the Illegal Gambling Strategy and Procedure Manuals. 3. Rollout of Awareness campaigns. 107

110 Risks (continued) RISK NO. STRATEGIC OBJECTIVE 2. Create an enabling environment for responsible licensing of all forms of gambling allowed in terms of the legislation. (continued) 3. Create an enabling environment for responsible licensing of all forms of gambling allowed in terms of the legislation. (continued) RISK DESCRIPTION CAUSE IMPACT LIKELIHOOD TREATMENT PLAN Increase of Problem Gambling in the province. Delays in the rollout of licenses. 1. Proliferation of illegal gambling activities. 2. Lack of awareness campaigns focussing on informing the public about the seriousness of Problem Gambling. 1. Inadequate skills (human resource), Inadequate monitoring. 2. Delays in disciplinary actions against licensees. 3. Inadequate procedure manuals. 4. Technical noncompliance of licensed premises. Critical. Likely. 1. Review and implementation of the Illegal Gambling Strategy and Procedure Manuals. 2. Rollout of Awareness campaigns. Critical. Common. 1. Relevant training and development. 2. & 3. Review the procedure manual to include compliance hearings. 4. Develop clear rules specific to each mode of gambling. 108

111 Risks (continued) RISK NO. STRATEGIC OBJECTIVE 4. Create an enabling environment for responsible licensing of all forms of gambling allowed in terms of the legislation. (continued) 5. Improve efficiencies in the regulation of all forms of gambling. RISK DESCRIPTION CAUSE IMPACT LIKELIHOOD TREATMENT PLAN Noncompliance with the North West Gambling Act. Delay in processing gambling license applications. 1. Late publication of notices. 2. Inadequate monitoring. 3. Ineffective implementation of internal controls. 1. Inadequate skills (human resource). 2. Inadequate monitoring. 3. Ineffective implementation of procedure manuals. Moderate. Moderate. 1&2. Roll out of integrated case management system. Major. Likely. 1. Relevant training and development. 2. Roll out of integrated case management system 2. Develop project plans for each application. 3. Review the procedure manual to include the review of all application forms. 109

112 Risks (continued) RISK NO. STRATEGIC OBJECTIVE 6. Monitor and enforce compliance with Broad Based Black Economic Empowerment Act and Codes of Good Practice within the industry. 7. Strengthening the Institutional Capacity of the Board. RISK DESCRIPTION CAUSE IMPACT LIKELIHOOD TREATMENT PLAN Fronting. Licensing of non-compliant applicants. Delay in critical decision making. 1. Inadequate probity checks. 2. Insufficient monitoring. 1. Inadequate probity checks. 2. Insufficient monitoring and review controls (Manager level Strategic Planning, Human Resource, Operations). 1. Inadequate number of Board members appointed to form an effective and legislative Board compliment. Major. Likely. 1. & 2. Review of the procedure manual. 3. Training of investigators on BBBEE requirements. Major. Likely. 1. & 2. Review of the procedure manual and Training of investigators on BBBEE requirements. Moderate. Moderate. 1. Continuous engagement with the MEC to ensure that the Board compliment is maintained. 110

113 Risks (continued) RISK NO. STRATEGIC OBJECTIVE 8. Strengthening the Institutional Capacity of the Board. RISK DESCRIPTION CAUSE IMPACT LIKELIHOOD TREATMENT PLAN Leakage, loss and unauthorised access to information. Possible misstatement in the Annual Financial Statements and annual report. 1. Inadequate implementation of records management policy/strategy. 2. Inadequate implementation of ICT Governance Policy Framework. 3. Ineffective maintenance of environmentally controlled server rooms (smoke detector, fire suppression system). 1. Inadequate monitoring. 2. Ineffective implementation of internal controls. Critical. Common. 1. Implementation of the file plan. 2. Implement the ICT Governance monitoring tool. Moderate. Moderate. 1. & 2. Development of a project plan for preparation of AFS and AR. 3. GRAP training. 6. INTERNAL CONTROL UNIT The Audit and Risk Committee approved the Internal Audit Plan, which was guided by risks as they were identified. The internal audit function was outsourced and the service provider reported directly to the Audit and Risk Committee in line with Treasury Regulation 27.2 The work of the internal auditors, as performed in line with the approved Internal Audit Plan, was verified by the Audit and Risk Committee every quarter. 111

114 7. AUDIT COMMITTEE NAME Mr TK Mathe QUALIFICATIONS CA (Chartered Accountant) RA (Registered Auditor) INTERNAL OR EXTERNAL IF INTERNAL, POSITION IN THE PUBLIC ENTITY Mr NI Kunene BCom External Head of Department Mr Z Mothibe Mr M Mokgobinyane Ms T Moromane Ms O Diutlwileng BCom,B. Accounting Science(Hons), Master of Business Leadership (MBL) DATE APPOINTED DATE RESIGNED NO OF MEETINGS ATTENDED External N/A Active 5 of of 5 External N/A Active 5 of 5 BCom (Hons) External N/A Active 4 of 5 BCom (Hons) External N/ A Active 5 of 5 BCom (Accounting and Audit) External N/A Active 5 of 5 8. INTERNAL AUDITORS The internal audit function of the Board has been outsourced to Maseng Viljoen Incorporated t/a MVI Group whose contract expired on January 2017 and Morar Incorporated was then appointed. 9. COMPLIANCE WITH LAWS AND REGULATIONS The Board strives to comply with all the laws of the country by ensuring that the Act, Regulations and Rules of the Board are amended regularly to accommodate the requirements of new laws of the country or amendments of related legislation. In terms of the latest amendments to the Financial Intelligence Centre Act, the North West Gambling Board is assigned the role 112

115 of a Supervisory Body, which adds numerous functions to regulating gambling activities. The Board signed a Memorandum of Understanding with the Financial Intelligence Centre to discharge these responsibilities and functions in collaboration with the Financial Intelligence Centre, and to assist in combating money laundering activities and the financing of terrorists and related activities in the Province. The Board concluded a Memorandum of Understanding (MoU) with the Competition Commission aimed at fostering relations in respect of investigation of competition matters. The Board relies on its internal audit function to constantly evaluate its compliance with all relevant laws and their applicability to its business of regulating gambling in the Province. In this regard, much attention is placed on compliance with those laws and identifying possible areas of deviation or non-compliance, to provide corrective measures or requisite systems of internal control. 10. FRAUD AND CORRUPTION The Board has a fraud and corruption policy in place which is supported by a fraud and corruption hotline that is available for use by both staff and the general public. Reported cases are recorded and investigated accordingly, if any. 11. MINIMISING CONFLICT OF INTEREST Section 10 of the North West Gambling Act, 2001 (Act No. 2 of 2001), as amended, provides for the disclosure of conflict of interest. A member of the Board shall not vote or participate in proceedings when his or her family or business associate has a controlling or financial interest in a matter relating to those proceedings. In a situation where a conflict of interest arises, a member of the Board shall fully disclose the nature of his or her interest and leave the meeting. Such disclosure will be considered by other members of the Board, so as to establish whether it amounts to any conflict of interest or whether participation by such a member in the deliberations of any specific matter related there to, will compromise integrity, transparency and/ or fair administration of the business of the Board. However, the disclosure will still be recorded in the minutes of the proceedings. The Board operates with a Charter that also provides for declarations of interest, and stipulates that: Board Members shall at all times observe the legal requirements in respect of the declaration of interest and do everything reasonably possible to avoid a conflict of interest in the execution of their duties and responsibilities to the entity. This is monitored by the Conflict of Interest Register, which is circulated and signed by all Board Members with or without conflict of interest in items on the agenda of meetings of the Board. The agenda of all meetings of the Board, includes an item on declaration of interest to ensure that all members of the Board are afforded the opportunity to make the necessary disclosures before any matter on the agenda is discussed. 113

116 12. CODE OF CONDUCT The Board developed a manual aimed at facilitating excellent HR management and compliance with statutory and legislative processes, good ethics and conduct. The Board also has a Code of Conduct Policy, which promotes good ethical behaviour and/or conduct and provides guidelines for constant monitoring. This policy is complemented by a clearly defined value system, which is part of the general performance management tools. To ensure compliance with all policies and guidelines for promotion of good ethical behaviour, Management has been empowered by the HR policy to take corrective action against employees who are in breach of their contracts of employment, either on account of misconduct or incapacity, nonperformance and/or underperformance. The purpose of these procedures is to provide appropriate processes for dealing with all cases in a manner that is predictable, consistent and fair. 13. HEALTH, SAFETY AND ENVIRONMENTAL ISSUES A Health and Safety Committee is in place as required in terms of section 18 of the Occupational Health and Safety Act, 1993 (Act No. 85 of 1993), as amended as well as health and safety representatives as required in terms of section 16. The workplace Health and Safety Policy is in place and has been adopted, as per section 7. The appointments of fire marshals, first aiders and a Section 16.2 Responsible Manager for Health and Safety need to be made and concluded. No injuries were reported during the year under review. Continuous inspections are conducted on a regular basis to identify, assess and mitigate health, safety and environmental risks and hazards. Renovations of the office block included repair of roof leakages, servicing of fire extinguishers and repair of leaking taps. The Facility Department together with the Health and Safety Committee have identified areas that could be improved to amplify the level of standards with regards to health, safety, security and environmental matters. These include the drafting and display of emergency evacuation plans, and regular execution of fire drills with participation of all staff. The antiburglary system must be verified for installation and functionality so as to comply with insurance conditions. The armed response emergency service must be appropriately structured to serve the intended purpose through working with the appointed security services provider. Issues of safety in offices relate to improvement in housekeeping, minimizing tripping hazards and eliminating sources of fire. There is a need to responsibly reduce waste generated and recycle, particularly with regards to waste paper and disposal of damaged electrical equipment. The Facility Department is committed to improving health and safety standards of the Board and creating a safe-wise culture amongst employees as well as cultivating green-office practices by reducing our carbon footprint as an organisation. 114

117 14. COMPANY SECRETARY The organisation appointed a Legal Manager whose role, inter alia, is to provide the services of a Company Secretary to the board. The responsibilities of this position entail facilitation of training for Board Members, facilitation of Board and Sub-committee Meetings, as well as capturing and safeguarding/keeping records and minutes of the Board. Furthermore, the Legal Manager ensures the attendance of all members of the Board to the business of the organisation, while observing a register of interest and compliance with general guidelines on good Corporate Governance. All other inherent responsibilities and duties of the Company Secretary, including the provision of legal advice and support to the Board, are performed by the Legal Manager who, administratively, reports to the CEO, but remains directly accountable to the Board. 15. SOCIO ECONOMIC DEVELOPMENT The NWGB through its SED programme embarked on different projects in its effort to fight the scourge of poverty and unemployment in the impoverished communities. These projects amongst others, include the awarding of bursaries to three youth from poor family backgrounds, building and donation of a threebedroom house, donation of school uniforms and stationery. The Board spent R from its SED Fund for 2016/17 FY. 16. COMMUNITY SOCIAL INVESTMENT (SCI) During the year under review, a total amount of R3,2 million was spent towards CSI. The target as per license conditions was R14,8 million. The licensees only contributed 21% of the above target. COMMUNITY SOCIAL INVESTMENT (CSI) EXPENDITURE FOR 2016/2017 FINANCIAL YEAR No Licensee Total 1 Sun City Casino 604,290 2 The Carousel Casino 835,806 3 Mmabatho Palms Casino 109,992 4 Rio Casino 589,655 5 Vukani Gaming NW Pty Ltd. 77,792 6 NW Goldrush Gaming 9,000 7 Galaxy Bingo Pty Ltd. 207,760 8 Galaxy Bingo Moruleng Pty Ltd. 52,018 9 Phumelela Gaming and Leisure Ltd. 500, Betting World (Pty) Ltd 95, CJ Coertze 85, Vbet SA NW (Pty) Ltd 10,336 Total 3,177,

118 16. Audit Committee Report We are pleased to present our report for the Financial Year ended 31 March AUDIT COMMITTEE RESPONSIBILITIES The Audit and Risk Committee complied with its responsibilities arising from Section 51(1)(a) of the Public Finance Management Act, 1999 (Act No. 1 of 1999) and Treasury Regulations and The Audit and Risk Committee furthermore reports that it adopted formal Terms of Reference as its Audit and Risk Committee Charter, regulated its affairs in compliance with this Charter and discharged all its responsibilities as contained therein. EFFECTIVENESS OF INTERNAL CONTROLS Our review of the findings of the internal audit work, which was based on the risk assessment conducted, revealed specific weaknesses, which were then raised with the Board. There was an improvement in the entity s system of internal controls and Management implemented internal audit recommendations. This is evidenced by the Unqualified Audit Report from the AGSA in previous periods, as well as the number of positive findings by the internal audit. There are, however, several deficiencies in the system of internal controls and/or deviations. These were reported by the internal auditors 116

119 and the Auditor-General and are being addressed. The Audit Committee takes note of Management s commitment to correct the deficiencies, and both the action plans and the monitoring of progress were consistent during the period under review. During the period under review, Internal Audit completed the assurance and consulting audits in the following key risk areas: Archiving and Filing Review Compliance Review: Governance and Legislation Illegal Gambling Review (biannual) Information Technology Review Supply Chain Management Review Asset Management Review Performance Information Audit Improvement Plan Review Inventory Management Quarterly and Annual Financial Statements EVALUATION OF FINANCIAL STATEMENTS The Audit Committee reviewed and discussed the Annual Financial Statements (AFS) submitted for audit. The Audit Committee concurs with, and accepts the conclusions of the Auditor-General on the AFS and is of the opinion that the audited AFS should be accepted and read together with the report of the Auditor- General and this Annual Report. AUDIT COMMITTEE REPORT We reviewed the Board implementation plan for audit issues, raised during the previous period under review and we are satisfied that the matters have been adequately resolved. IN-YEAR MANAGEMENT AND MONTHLY/ QUARTERLY REPORT The entity Reported monthly and quarterly to the Treasury, as required by the PFMA. Monitoring was done regularly, and performance information was reviewed periodically during the period under review. Terence K Mathe Chairperson of the Audit Committee North West Gambling Board 117

120 118

121 Part D HUMAN RESOURCES MANAGEMENT 1. Introduction 2. Human Resource Oversight Statistics 119

122 1. INTRODUCTION Overview of HR matters as the public entity. Strategic Objective - Strengthen the institutional capacity of the Board The Human resources department is responsible for all HR functions including payroll. During the year under review the appointment were as follows: Seven (7) permanent positions, (three (3) temporary employees were absorbed to permanent position); Three (3) temporary positions; and Nine (9) internship students. One (1) permanent employee resigned and four (4) temporary employee s contract ended. Set HR Priorities for the year under review and the impact of these priorities. The Human Resources department was operating with nine Key Performance Indicators all were achieved as follows: Positions were filled as planned; Salaries and benefits were reviewed; Leave reports were compiled; HR Policy was reviewed; Performance rewards were implemented as per the policy of the board; Payroll reports were compiled a planned; Fifty-nine (59) employees were trained; Employee wellness program was held; and Employment Equity report was submitted. Workforce planning framework and key strategies to attract and recruit a skilled and capable workforce. The Board offers a Total Cost to Company package which is inclusive of seven and half percent (7.5%) contribution to provident fund and fifty percent (50%) contribution to medical aid. Performance Management framework. The Board has implemented a Performance Management Policy to encourage good performance and reward good performance. Employee Wellness Programmes The Board hosted wellness day on 02 September 2016, ICAS was present with their nurses to do health screening. The day started off by 5 km fun walk/run and ended with Zumba aerobics session. On the 13 December 2016, the Board hosted another wellness day, employees took part in different activities. Policy development The Human Resources Policy of the Board was reviewed for the year under review. Highlight achievements Four (4) employees received Long Service awards for the year under review, Mr K Monate Audit and Systems Manager was awarded the best employee of the year. The Executive Office was awarded the best performing programme. 120

123 Ms S Konzane Law Enforcement Inspector was awarded CEO s Special recognition award for commitment in compilation of annual reports for the Board over the years. Challenges faced by the public entity The Board has planned to appoint people from other racial groups, e.g Whites, this could not be achieved because there were no suitable candidates that submitted their application to the Board. Future HR Plans/Goals The Human Resources Department plan to Fill all budgeted positions, administer payroll and employee benefits, employee wellness and review the Human Resources Policy of the Board. 2. HUMAN RESOURCES OVERSIGHT STATISTICS Personnel Cost by Programme PROGRAMME Chief Executive Officer TOTAL EXPENDITURE FOR THE ENTITY (R'000) PERSONNEL EXPENDITURE (R'000) PERSONNEL EXP. AS A % OF TOTAL EXP (R'000) NO OF EMPLOYEES AVARAGE PERSONNEL COST PER EMPLOYEE (R'000) R % Corporate Services % Finance % Legal Services % Audit and Systems % Gambling Control % Investigations and Licensing % Total Permanent % Non-permanent % Grand Total %

124 Personnel Cost by Salary Band LEVEL PERSONNEL EXPENDITURE (R'000) % OF PERSONNEL EXP. TO TOTAL PERSONNEL COST (R'000) NO OF EMPLOYEES AVERAGE PERSONNEL COST PER EMPLOYEE Top Management % Senior Management % Professional qualified % Skilled % Semi-skilled % Unskilled % Total % Non-permanent % Grand Total % Performance Awards PROGRAMME PERFORMANCE REWARDS PERSONNEL EXPENDITURE (R'000) % OF PERFORMANCE REWARDS TO TOTAL PERSONNEL COT (R'000) Top Management % Senior Management % Professional qualified % Skilled % Semi-skilled % Unskilled % Total % Non-permanent 0 0 0% Grand Total % 122

125 Training Costs PROGRAMME Chief Executive Officer TRAINING PERSONNEL TRAINING EXPENDITURE NO. OF AVG TRAINING EXPENDITURE EXPENDITURE AS A % OF EMPLOYEES COST PER (R'000) (R'000) PERSONNEL COST TRAINED EMPLOYEE % Corporate Services % Finance % Legal Services % Audit and Systems % Gambling Control % Investigations % and Licensing Total Permanent % Non-permanent % Grand Total % Employment and Vacancies Per Programme PROGRAMME 2015/2016 NUMBER OF EMPLOYEES 2016/2017 APPROVED POSTS 2016/2017 NO. OF EMPLOYEES 2016/2017 VACANCIES Chief Executive % Officer Corporate Services % Finance % Legal Services % Audit and Systems % Gambling Control % % Investigations and Licensing % OF VACANCIES Total Permanent % Non-permanent % Grand Total % 123

126 Employment and Vacancies Per Occupational Levels LEVEL 2015/2016 NUMBER OF EMPLOYEES 2016/2017 APPROVED POSTS 2016/2017 NO. OF EMPLOYEES 2016/2017 VACANCIES % OF VACANCIES Top Management % Senior % Management Professional % qualified Skilled % Semi-skilled % Unskilled % Total % Non-permanent % Grand Total % Employment Changes SALARY BAND EMPLOYMENT AT BEGINNING OF PERIOD APPOINTMENTS TERMINATIONS EMPLOYMENT AT THE END OF THE PERIOD Top Management Senior Management Professional qualified Skilled Semi-skilled Unskilled Total Non-permanent Grand Total

127 Reasons for Staff Leaving REASON FOR LEAVING NUMBER % OF TOTAL NO. OF STAFF LEAVING Death 0 0% Resignation 3 4% Dismissal 0 0% Retirement 0 0% Ill health 0 0% Expiry of Contract 4 5% Other 0 0% TOTAL 7 8% Labour Relations: Misconduct and Disciplinary Action NATURE OF DISCIPLINARY ACTION NUMBER Verbal Warning 0% Written Warning 0% Final Written Warning 0% Dismissal 0% 125

128 Equity Target and Employment Equity Status MALE AFRICAN COLOURED INDIAN WHITE LEVELS CURRENT TARGET CURRENT TARGET CURRENT TARGET CURRENT TARGET Top Management Senior Management Professional qualified Skilled Technical Semi-skilled Unskilled TOTAL Non-Permanent Grand Total The status of Employment Equity for males is as follows: African males are more than the targeted number, Coloured males are less than the targeted number, Indian males no representative, and White males no representative. 126

129 The table indicates the Status of Females. LEVELS FEMALE AFRICAN COLOURED INDIAN WHITE CURRENT TARGET CURRENT TARGET CURRENT TARGET CURRENT TARGET Top Management Senior Management Professional qualified Skilled Technical Semi-skilled Unskilled TOTAL Non-Permanent Grand Total The Status of Employment Equity for male is as follows: African females are more than the targeted number, Coloured females are less than the targeted number, Indian females well represented, and White females no representation. The table indicates the status of People with Disabilities. DISABLED STAFF MALE FEMALES LEVELS CURRENT TARGET CURRENT TARGET Top Management Senior Management Professional qualified Skilled Semi-skilled Unskilled Non-Permanent TOTAL

130 128

131 Part E FINANCIAL INFORMATION 1. Statement of Responsibility for the Annual Financial Statements 2. Report of the Auditor-General 3. Statement of Financial Position 4. Statement of Financial Performance 5. Statement of Changes in Net Assets 6. Cash-flow Statements 7. Statement of Comparison of Budget and Actual Amounts 8. Accounting Policies 9. Notes to the Annual Financial Statements 129

132 1. Statement of Responsibility for the Annual Financial Statements The Accounting Authority is responsible for the preparation of the public entity s Annual Financial Statements and for the judgements made regarding 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 The external auditors are engaged to express an independent opinion on the Annual Financial Statements of the public entity. The NWGB Annual Financial Statements for the year ended 31 March 2017 have been audited by the external auditors and their report is presented on page 131. The Annual Financial Statements of the public entity set out on page 139 to page 185 have been approved. 130

133 Report of the auditor-general to the North West provincial legislature on the North West Gambling Board Report on the audit of the financial statements Opinion 1. I have audited the financial statements of the North West Gambling Board set out on pages 139 to 185, which comprise statement of financial position as at 31 March 2017, and the statement of financial performance, statement of changes in net assets, and cash flow statement and statement of comparison of budget and actual amounts for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies. 2. In my opinion, the financial statements present fairly, in all material respects, the financial position of the North West Gambling Board as at 31 March 2017, and its financial performance and cash flows for the year then ended in accordance with the South African Standards of Generally Recognised Accounting Practice (SA standards of GRAP) and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA). Basis for opinion 3. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general s responsibilities for the audit of the financial statements section of my report. 4. I am independent of the entity in accordance with the International Ethics Standards Board for Accountants Code of ethics for professional accountants (IESBA code) together with the ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA code. 5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. 131

134 Emphasis of matters 6. I draw attention to the matters below. My opinion is not modified in respect of these matters. Irregular expenditure 7. As disclosed in note 30 to the financial statements, irregular expenditure of R was identified in the current year, R of this amount relate to the prior year but was only identified in the current year. Restatement of corresponding figures 8. As disclosed in note 37 to the financial statements, the corresponding figures for provisions and pre-payments respectively have been restated as a result of errors discovered during the year ended 31 March Responsibilities of the accounting authority for the financial statements 9. The accounting authority is responsible for the preparation and fair presentation of the financial statements in accordance with the SA standards of GRAP and the requirements of the PFMA and for such internal control as the accounting authority determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. 10. In preparing the financial statements, the accounting authority is responsible for assessing the entity s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the there is an intention either to liquidate the entity or to cease operations, or there is no realistic alternative but to do so. Auditor-general s responsibilities for the audit of the financial statements 11. My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered 132

135 material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 12. A further description of my responsibilities for the audit of the financial statements is included in the annexure to the auditor s report. Report on the audit of the annual performance report Introduction and scope 13. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and the general notice issued in terms thereof I have a responsibility to report material findings on the reported performance information against predetermined objectives for selected programmes presented in the annual report. I performed procedures to identify findings but not to gather evidence to express assurance. 14. My procedures address the reported performance information, which must be based on the approved performance planning documents of the entity. I have not evaluated the completeness and appropriateness of the performance indicators included in the planning documents. My procedures also did not extend to any disclosures or assertions relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information. Accordingly, my findings do not extend to these matters. 15. I evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework, as defined in the general notice, for the following selected programmes presented in the annual report of the entity for the year ended 31 March 2017: Programmes Pages in the annual report Programme 1 Investigation and licensing Programme 2 Gambling control Programme 3 Gambling audit and systems I performed procedures to determine whether the reported performance information was properly presented and whether performance was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete. 17. I did not identify any material findings on the usefulness and reliability of the reported performance information on any of the selected programmes of the entity. 133

136 Other matters 18. I draw attention to the matters below. Achievement of planned targets 19. Refer to the annual report on pages 32 to 72 for information on the achievement of planned targets for the year and explanations provided for the under/overachievement of a significant number of targets. Adjustment of material misstatements 20. I identified a material misstatement in the annual performance report submitted for auditing. This material misstatement was on the reported performance information of Programme 1 - Investigation and licensing. As management subsequently corrected the misstatement, I did not report any material findings on the usefulness and reliability of the reported performance information. Report on audit of compliance with legislation Introduction and scope 21. In accordance with the PAA and the general notice issued in terms thereof I have a responsibility to report material findings on the compliance of the entity with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance. 22. The material findings in respect of the compliance criteria for the applicable subject matters are as follows: Annual financial statements 23. The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework as required by section 55(1)(b) of the PFMA. Material misstatements of provisions and irregular expenditure identified by the auditors in the submitted financial statement were corrected, resulting in the financial statements receiving an unqualified audit opinion. Expenditure management 24. Effective steps were not taken to prevent irregular expenditure of R as required by section 134

137 51(1)(b)(ii) of the PFMA. The majority of the irregular expenditure was caused by procurements above R that were done without following a competitive bidding process as required by Treasury Regulation 16A6.1 Procurement and contract management 25. Some of the goods and services with a transaction value below R were procured without obtaining the required price quotations, as required by Treasury Regulation 16A Some of goods and services of a transaction value above R were procured without inviting competitive bids, as required by Treasury Regulations 16A6.1. Deviations were approved by the accounting authority even though it was not impractical to invite competitive bids, in contravention of Treasury Regulation 16A Invitations for competitive bidding were not always advertised in at least the government tender bulletin, as required by Treasury Regulation 16A6.3(c). 28. Bid adjudication was not always done by committees which was composed in accordance with the policies of the entity, as required by Treasury Regulation 16A6.2(a), (b) and (c). 29. Some contracts were awarded to bidders based on evaluation criteria that differed from those stipulated in the original invitation for bidding, in contravention of Treasury Regulation 16A6.3(a) and the Preferential Procurement Regulations. Other information 30. The accounting authority of the entity is responsible for the other information. The other information comprises the information included in the annual report which includes the reports of the chairperson of the board, audit committee and the chief executive officer s overview and any other information to be included in the report. The other information does not include the financial statements, the auditor s report thereon and those selected programmes presented in the annual report that have been specifically reported on in the auditor s report. 31. My opinion and findings do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon. 32. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected programmes presented in the annual report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed on the other information obtained prior to the date of this auditor s report, I conclude that there is a 135

138 material misstatement of this other information, I am required to report that fact. I have received the information and no material inconsistencies identified. Internal control deficiencies 33. I considered internal control relevant to my audit of the financial statements, reported performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance thereon. The matters reported below are limited to the significant internal control deficiencies that were identified and the findings on non-compliance with legislation included in this report. The entity s internal controls were not sufficiently implemented to ensure that adequate preparation and presentation of annual financial statements and annual performance reporting and monitoring of compliance with applicable laws and regulations are achieved, which resulted in material non-compliance findings and material misstatements to the financial statements which were subsequently corrected. Rustenburg 31 July

139 Annexure Auditor-general s responsibility for the audit 1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional scepticism throughout my audit of the financial statements, and the procedures performed on reported performance information for selected programmes and on the entity s compliance with respect to the selected subject matters. Financial statements 2. In addition to my responsibility for the audit of the financial statements as described in the auditor s report, I also: identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the accounting authority. conclude on the appropriateness of the accounting authority s use of the going concern basis of accounting in the preparation of the financial statements. I also conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the North West Gambling Board ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor s report to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate, to modify the opinion on the financial statements. My conclusions are based on the information available to me at the date of the auditor s report. However, future events or conditions may cause an entity to cease to continue as a going concern. evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 137

140 Communication with those charged with governance 3. I communicate with the accounting authority regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. 4. I also confirm to the accounting authority that I have complied with relevant ethical requirements regarding independence, and communicate all relationships and other matters that may reasonably be thought to have a bearing on my independence and here applicable, related safeguards. 138

141 4. Statement of Financial Position FOR THE YEAR ENDED 31 MARCH 2017 NOTE(S) Assets Current Assets Cash and cash equivalents 3 19,687,363 21,420,714 Receivables from exchange transactions 4 2,111,609 2,108,517 Receivables from non-exchange transactions 5 8,514,437 28,009,735 Prepayments 6 623, ,035 Inventories 7 293, ,118 31,230,193 52,327,119 Non-Current Assets Property, plant and equipment 8 8,046,699 7,599,120 Total Assets 39,276,892 59,926,239 Liabilities Current Liabilities Payables from exchange transactions 10 1,553,350 2,782,123 Taxes and transfers payable (non-exchange) 11 13,748,180 32,054,478 Unspent: Socio Economic Development Fund 36 4,988,597 6,247,869 Accruals 13 1,910,093 1,583,807 Investigation fees: deposit 12 1,623,522 1,691,239 Provisions 31 2,904,872 2,086,562 26,728,614 46,446,078 Non-Current Liabilities Operating lease liability 9 136, ,104 Provisions 31 3,588,331 2,958,889 3,724,999 3,450,993 Total Liabilities 30,453,613 49,897,071 Net Assets 8,823,279 10,029,168 Accumulated surplus 8,823,279 10,029, R 2016 R 139

142 5. Statement of Financial Performance FOR THE YEAR ENDED 31 MARCH 2017 NOTE(S) Revenue Revenue from exchange transactions Investigation Fees 15 4,365,229 5,863,131 Other revenue 14 94, ,363 Interest received 609, ,501 Total revenue from exchange transactions 5,068,947 6,248, R 2016 R Revenue from non-exchange transactions Transfer revenue Department of Finance, Economy and Enterprise Development 17 77,154,000 64,661,000 Total revenue 16 82,222,947 70,909,995 Expenditure Employee related costs 18 (38,667,284) (32,255,795) Depreciation and amortisation 8 (1,775,200) (1,158,041) Lease rentals on operating lease 20 (3,806,326) (3,412,718) Administrative expenses 19 (38,920,712) (34,286,295) Total expenditure 83,169,522 71,112,849 Loss on disposal of assets (259,314) (156,463) Deficit for the year (1,205,889) (359,317) 140

143 6. Statement of Changes in Net Assets FOR THE FOR THE YEAR ENDED 31 MARCH 2017 Accumulated surplus Total net assets Balance at 01 April ,667,152 13,667,152 Changes in net assets Prior period adjustment (3,278,667) (3,278,667) Net income (losses) recognised directly in net assets (3,278,667) (3,278,667) Surplus for the year (359,317) (359,317) Total recognised income and expenses for the (3,637,984) (3,637,984) Total changes (3,637,984) (3,637,984) Balance at 01 April ,029,168 10,029,168 Changes in net assets Surplus for the (1,205,889) (1,205,889) Total changes (1,205,889) (1,205,889) Balance at 31 March ,823,279 8,823,

144 7. Cash Flow Statement FOR THE YEAR ENDED 31 MARCH March March 2016 NOTE(S) Cash flows from operating activities Receipts Taxes and Levies collected 138,619, ,784,869 Investigation Fees 3,705,355 6,789,237 License Renewal 2,829,800 - Grants 77,154,000 64,661,000 Interest income 604, ,485 Other receipts 234, ,199 Socio Economic Development Fund Contribution - 7,100, ,147, ,656,790 Payments Employee costs (36,705,233) (30,185,380) Suppliers (45,412,176) (38,003,086) Taxes and Levies Transfers (139,001,688) (119,799,149) Socio Economic Development Contribution (1,279,772) (857,100) (222,398,869) (188,844,715) Net cash flows from operating activities ,743 10,812,075 Cash flows from investing activities Purchase of property, plant and equipment 8 (2,482,094) (2,614,086) Net increase/(decrease) in cash and cash equivalents (1,733,351) 8,197,989 Cash and cash equivalents at the beginning of the year 21,420,714 13,222,725 Cash and cash equivalents at the end of the year 3 19,687,363 21,420,

145 8. STATEMENT OF COMPARISON OF BUDGET AND AMOUNTS Approved budget Adjustments Approved savings Final Budget Actual amounts on comparable basis Difference between final budget and actual Reference Statement of Financial Performance Revenue Other non-tax revenue ,068,947 5,068,947 Note 16 Government Grant 77,154, ,154,000 77,154,000 - Approved savings Note 33 Total revenue 77,154, ,154,000 82,222,947 5,068,947 Expenses Compensation of employees (37,300,000) - - (37,300,000) (38,667,284) (1,367,284) Note 35 Use of goods and services (37,354,000) - (5,500,000) (42,854,000) (42,727,038) 126,962 Note 35 Depreciation and amortisation (1,775,200) (1,775,200) Note 8 Total expenditure (74,654,000) - (5,500,000) (80,154,000) (83,169,522) (3,015,522) Loss on disposal (259,314) (259,314) Deficit for the period 2,500,000 - (5,500,000) (3,000,000) (1,205,889) 1,794,

146 9. Accounting Policies 1. Presentation of Annual Financial Statements The annual financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP),including any interpretations, guideline and directives issued by the Accounting Standard Board. These annual financial statements have been prepared on an accrual basis of accounting. A summary of the significant accounting policies, which have been consistently applied, is disclosed below and are consistent with the previous period, unless explicicly stated. The details of any changes in accounting policies are explained in the relevant policies. Assets, liabilities, revenue and expenditure has not been offset except when offsetting is required by the Standard of GRAP. 1.1 Presentation currency These annual financial statements are presented in South African Rand, which is the functional currency of the Board. 1.2 Significant judgements and sources of estimation uncertainty In preparing the annual financial statements, management is required to make estimates and assumptions that affect the amounts represented in the annual financial statements and related disclosures. Use of available information and the application of judgement is inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the annual financial statements. Significant judgements include: Receivables from exchange and non-exchange trasactions Trade and other receivables are stated at the nominal value as reduced by appropriate allowances for estimated irrecoverable amounts. The carrying amount of these receivables approximate fair value due to the short period to maturity of these instruments. Trade and other receivables from exchange transactions are disclosed separately from trade and other receivables from non-exchange transactions. Trade and other receivables in exchange for which the entity gives approximately equal value to another entity are recognised as trade and other receivables from exchange transactions. Trade and receivables received without directly giving approximately equal value in exchange are recognised as trade and other receivables from non-exchange transactions. The entity assesses its receivables from exchange and non-exchange trasnactions for impairment at the end of each reporting period. In determining whether an impairment loss should be recorded in surplus or deficit in a statement of financial performance, the entity makes judgements as to whether there is observable data indicating a measurable decrease in the estimated future cash flows from a financial asset. 144

147 1.2 Significant judgements and sources of estimation uncertainty (continued) Allowance for slow moving, damaged and obsolete stock The Board considers an allowance for slow moving, damaged and obsolete inventory to write inventory down to the lower of cost or net realisable value at each reporting period. The items of inventory or stock kept by the Board only refers to stationery consumables used in the normal day to day operations in the delivery of service. Management have made estimates of the selling price and direct cost to sell on certain inventory items. The write down is included as a deficit in the statement of financial performance. Useful lives and residual values The entity s management determines the estimated useful lives, residual values and related depreciation charges for assets as noted in the accounting policy 1.3 Property, Plant and Equipment. These estimates are based on industry norms. The effect of review of useful life and residual values are accounted for in accordance with GRAP 3. Where changes are made to the estimated residual values, management also makes these changes prospectively. Allowance for doubtful debts On receivables an impairment loss is recognised in surplus and deficit when there is objective evidence that it is impaired. The impairment is measured as the difference between the receivables carrying amount and the present value of estimated future cash flows discounted at the effective interest rate, computed at initial recognition. Leave accrual The entity determines the amount of leave accrual on the basis of the number of days owed to employees as annual leave at any reporting date multiplied by the rate of pay per hour calculated excluding any discretionary payments made during the operating year. Leave accrual is disclosed as a payable in the statement of financial position. Accounts Payables The entity has both exchange and non-exchange transactions. The basis of recognition is either date of service or delivery in the case of goods and services. Payables from exchange and non-exchange transaction are carried at fair value and disclosed in the statement of financial position. The fair value of payables from exchage and non-exchage transactions approximates their carrying value. The carrying amount of these payables approximate fair value due to the short period to maturity of these instruments. Trade and other payables from exchange 145

148 1.2 Significant judgements and sources of estimation uncertainty (continued) transactions are disclosed separately from trade and other payables from non-exchange transactions in the statement of financial position. 1.3 Property, plant and equipment The cost of an item of property, plant and equipment is recognised as an asset when: it is probable that future economic benefits or service potential associated with the item will flow to the entity; and the cost of the item can be measured reliably. Property, plant and equipment is initially measured at cost. The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts and rebates are deducted in arriving at the cost. Where an asset is acquired through a non-exchange transaction, its cost is its fair value as at date of acquisition. Where an item of property, plant and equipment is acquired in exchange for a non-monetary asset or monetary assets, or a combination of monetary and non-monetary assets, the asset acquired is initially measured at fair value (the cost). If the acquired item s fair value was not determinable, it s deemed cost is the carrying amount of the asset(s) given up. The initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located is also included in the cost of property, plant and equipment, where the entity is obligated to incur such expenditure, and where the obligation arises as a result of acquiring the asset or using it for purposes other than the production of inventories. Recognition of costs in the carrying amount of an item of property, plant and equipment ceases when the item is in the location and condition necessary for it to be capable of operating in the manner intended by management. When the significant components of item of property, plant and equipment. have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Property, plant and equipment are stated at cost, less accumulated depreciation and accumulated impairment in value. Depreciation is calculated on straight line basis over the useful lives of the assets. 146

149 1.3 Property, plant and equipment (continued) The carrying amount of property, plant and equipment are reviewed for impairment when events or changes in cicurmstances indicate the carrying amount may not be recoverable. An item of property, plant and equipment is derecognised upon disposal or when no future benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the assets (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the surplus or deficit section of the Statement of Financial Performance in the year the assets is derecognised.. The asset s residual value, useful live and depreciation method are reviewed and adjusted if appropriate at each financial year - end. The useful lives of items of property, plant and equipment are estimated as follows: Item Depreciation method Average useful life Office furniture Straight line years Motor vehicles Straight line 8-12 years Office equipment Straight line 7-12 years Computer equipments Straight line 5-10 years Leasehold improvements Straight line the shorter of the lease period, plus renewal or useful life. The residual value, the useful life and depreciation method of each asset are reviewed at least at of each reporting date. If the expectations differ from previous estimates, the change will be treated in accordance with GRAP 3. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. The depreciation charge for each period is recognised in surplus or deficit unless it is included in the carrying amount of another asset. 147

150 1.4 Financial instruments Classification The entity has the following types of financial assets (classes and category) as reflected on the Statement of Finacial Position or in the notes thereto: Class Category Cash and cash equivalent Financial asset measured at amortised cost Receivable from exchange transactions Financial asset measured at amortised cost Other receivables from non exchange transactions Financial asset measured at amortised cost The entity has the following types of financial liabilities (classes and category) as reflected on the face of the statement of Financial Position or in the notes thereto. Class Category Payables from exchange transations Financial liability measured at amortised cost Payables from non-exchange transactions Financial liability measured at amortised cost Initial recognition The entity recognises a financial asset or a financial liability in its effect on prior years when the entity becomes a party to the contractual provisions of the instrument. Initial measurement of financial assets and financial liabilities The entity measures a financial asset and financial liability initially at its fair value plus, in the case of a financial asset or a financial liability not subsequently measured at fair value, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. Subsequent measurement of financial assets and financial liabilities The entity measures all financial assets and financial liabilities after initial recognition using the following categories: Financial instruments at fair value. Financial instruments at amortised cost. Financial instruments at cost. 148

151 1.4 Financial instruments (continued) Gains and losses A gain or loss arising from a change in the fair value of a financial asset or financial liability measured at fair value is recognised in surplus or deficit. For financial assets and financial liabilities measured at amortised cost or cost, a gain or loss is recognised in surplus or deficit when the financial asset or financial liability is derecognised or impaired, or through the amortisation process. Impairment and uncollectibility of financial assets The entity assess at the end of each reporting period whether there is any objective evidence that a financial asset or group of financial assets is impaired. Financial assets measured at amortised cost: If there is objective evidence that an impairment loss on financial assets measured at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset s original effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account. The amount of the loss is recognised in surplus or deficit. Financial assets measured at cost: If there is objective evidence that an impairment loss has been incurred on an investment in a residual interest that is not measured at fair value because its fair value cannot be measured reliably, the amount of the impairment loss is measured as the difference between the carrying amount of the financial asset and the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment losses are not reversed. Derecognition Financial assets The entity derecognises financial assets using trade date accounting. The entity derecognises a financial asset only when: the contractual rights to the cash flows from the financial asset expire, are settled or waived; 149

152 1.4 Financial instruments (continued) the entity transfers to another party substantially all of the risks and rewards of ownership of the financial asset; or the entity, despite having retained some significant risks and rewards of ownership of the financial asset, has transferred control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party, and is able to exercise that ability unilaterally and without needing to imposeadditional restrictions on the transfer. In this case, the entity : - derecognise the asset; and - recognise separately any rights and obligations created or retained in the transfer. The carrying amounts of the transferred asset are allocated between the rights or obligations retained and those transferred on the basis of their relative fair values at the transfer date. Newly created rights and obligations are measured at their fair values at that date. Any difference between the consideration received and the amounts recognised and derecognised is recognised in surplus or deficit in the period of the transfer. If the entity transfers a financial asset in a transfer that qualifies for derecognition in its entirety and retains the right to service the financial asset for a fee, it recognise either a servicing asset or a servicing liability for that servicing contract. If the fee to be received is not expected to compensate the entity adequately for performing the servicing, a servicing liability for the servicing obligation is recognised at its fair value. If the fee to be received is expected to be more than adequate compensation for the servicing, a servicing asset is recognised for the servicing right at an amount determined on the basis of an allocation of the carrying amount of the larger financial asset. If, as a result of a transfer, a financial asset is derecognised in its entirety but the transfer results in the entity obtaining a new financial asset or assuming a new financial liability, or a servicing liability, the entity recognise the new financial asset, financial liability or servicing liability at fair value. On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received is recognised in surplus or deficit. If the transferred asset is part of a larger financial asset and the part transferred qualifies for derecognition in its entirety, the previous carrying amount of the larger financial asset is allocated between the part that continues to be recognised and the part that is derecognised, based on the relative fair values of those parts, on the date of the transfer. For this purpose, a retained servicing asset is treated as a part that continues to be recognised. The difference between the carrying amount allocated to the part derecognised and the sum of the consideration received for the part derecognised is recognised in surplus or deficit. 150

153 1.4 Financial instruments (continued) If a transfer does not result in derecognition because the entity has retained substantially all the risks and rewards of ownership of the transferred asset, the entity continue to recognise the transferred asset in its entirety and recognise a financial liability for the consideration received. In subsequent periods, the entity recognises any revenue on the transferred asset and any expense incurred on the financial liability. Neither the asset, and the associated liability nor the revenue, and the associated expenses are offset. Financial liabilities The entity removes a financial liability (or a part of a financial liability) from its effect on prior years when it is extinguished i.e. when the obligation specified in the contract is discharged, cancelled, expires or waived. An exchange between an existing borrower and lender of debt instruments with substantially different terms is accounted for as having extinguished the original financial liability and a new financial liability is recognised. Similarly, a substantial modification of the terms of an existing financial liability or a part of it is accounted for as having extinguished the original financial liability and having recognised a new financial liability. The difference between the carrying amount of a financial liability (or part of a financial liability) extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in surplus or deficit. Any liabilities that are waived, forgiven or assumed by another entity by way of a non-exchange transaction are accounted for in accordance with the Standard of GRAP on Revenue from Non-exchange Transactions (Taxes and Transfers). Presentation Interest relating to a financial instrument or a component that is a financial liability is recognised as revenue or expense in surplus or deficit. Losses and gains relating to a financial instrument or a component that is a financial liability is recognised as revenue or expense in surplus or deficit. A financial asset and a financial liability are only offset and the net amount presented in the Statement of Financial Position when the Board currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. In accounting for a transfer of a financial asset that does not qualify for derecognition, the Board does not offset the transferred asset and the associated liability. 151

154 1.5 Leases Leases are classified as finance leases where the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Operating lease payments are recognised as an expense on a straight line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the lease of assets are consumed. Contingent rentals arising under operating lease are recognised as an expense in the period in which they are incurred. The difference between the amount recognised as an expense and the contractual payments are recognised as an operating lease asset or liability. 1.6 Inventories Inventories are initially measured at cost except where inventories are acquired at no cost or for nominal considerations. The costs shall then be the fair value as at the date of acquisition. Subsequently inventories are measured at lowest of cost and current replacement value. The cost of inventories is assigned using the first in first out formula. The same formula is used for all inventories having a similar nature and use in the entity. Inventories comprised of stationery and consumables for distribution during the course of rendering service. The cost of inventories comprises of all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The amounts of any write down of inventories to net replacement value and all losses of inventories are recognised as an expense in the period that the write down or loss occurred. 1.7 Taxation The income of the Board is exempt from the tax in terms of Section 10 (1) (e) of the Income Tax Act (Act 580 of 1962). In terms of Section 24 (1) of the VAT Act, North West Gambling Board is deregistered as a VAT vendor with effect from 1 April Leave Accrual The employees of the Board are entitled to 21 working days per annum as leave gratuity. The leave days are recognised as accrued to employees. The leave accrual is based on the total number of leave days due to each employee at year-end multiplied by each employee s respective daily rate of cost to company. 152

155 1.9 Impairment of non-cash-generating assets Cash-generating assets are assets managed with the objective of generating a commercial return. An asset generates a commercial return when it is deployed in a manner consistent with that adopted by a profit-oriented entity. Non-cash-generating assets are assets other than cash-generating assets. The Board only have the non cash generating assets. Carrying amount is the amount at which an asset is recognised in the Statement of Financial Position after deducting any accumulated depreciation and accumulated impairment losses thereon. Identification When the carrying amount of a non-cash-generating asset exceeds its recoverable service amount, it is impaired. The Board ssesses at each reporting date whether there is any indication that a non-cash-generating asset may be impaired. If any such indication exists, the Board estimates the recoverable service amount of the asset. Value in use Value in use of non-cash-generating assets is the present value of the non-cash-generating assets remaining service potential. The present value of the remaining service potential of a non-cash-generating assets is determined using the following approach: Depreciated replacement cost approach The present value of the remaining service potential of a non-cash-generating asset is determined as the depreciated replacement cost of the asset. The replacement cost of an asset is the cost to replace the asset s gross service potential. This cost is depreciated to reflect the asset in its used condition. An asset may be replaced either through reproduction (replication) of the existing asset or through replacement of its gross service potential. The depreciated replacement cost is measured as the reproduction or replacement cost of the asset, whichever is lower, less accumulated depreciation calculated on the basis of such cost, to reflect the already consumed or expired service potential of the asset. The replacement cost and reproduction cost of an asset is determined on an optimised basis. The rationale is that the Board would not replace or reproduce the asset with a like asset if the asset to be replaced or reproduced 153

156 1.9 Impairment of non-cash-generating assets (continued) is an overdesigned or overcapacity asset. Overdesigned assets contain features which are unnecessary for the goods or services the asset provides. Overcapacity assets are assets that have a greater capacity than is necessary to meet the demand for goods or services the asset provides. The determination of the replacement cost or reproduction cost of an asset on an optimised basis thus reflects the service potential required of the asset. Restoration cost approach Restoration cost is the cost of restoring the service potential of an asset to its pre-impaired level. The present value of the remaining service potential of the asset is determined by subtracting the estimated restoration cost of the asset from the current cost of replacing the remaining service potential of the asset before impairment. The latter cost is determined as the depreciated reproduction or replacement cost of the asset, whichever is lower. Service units approach The present value of the remaining service potential of the asset is determined by reducing the current cost of the remaining service potential of the asset before impairment, to conform to the reduced number of service units expected from the asset in its impaired state. The current cost of replacing the remaining service potential of the asset before impairment is determined as the depreciated reproduction or replacement cost of the asset before impairment, whichever is lower. Recognition and measurement If the recoverable service amount of a non-cash-generating asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable service amount. This reduction is an impairment loss. An impairment loss is recognised immediately in surplus or deficit. When the amount estimated for an impairment loss is greater than the carrying amount of the non-cashgenerating asset to which it relates, the Board recognises a liability only to the extent that is a requirement in the Standards of GRAP. After the recognition of an impairment loss, the depreciation (amortisation) charge for the non-cash-generating asset is adjusted in future periods to allocate the non-cash-generating asset s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life. 154

157 1.9 Impairment of non-cash-generating assets (continued) Reversal of an impairment loss The Board assess at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a non-cash-generating asset may no longer exist or may have decreased. If any such indication exists, the Board estimates the recoverable service amount of that asset. An impairment loss recognised in prior periods for a non-cash-generating asset is reversed if there has been a change in the estimates used to determine the asset s recoverable service amount since the last impairment loss was recognised. The carrying amount of the asset is increased to its recoverable service amount. The increase is a reversal of an impairment loss. The increased carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised for the asset in prior periods. A reversal of an impairment loss for a non-cash-generating asset is recognised immediately in surplus or deficit. After a reversal of an impairment loss is recognised, the depreciation (amortisation) charge for the non-cashgenerating asset is adjusted in future periods to allocate the non-cash-generating asset s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life. Redesignation The redesignation of assets from a cash-generating asset to a non-cash-generating asset or from a non-cashgenerating asset to a cash-generating asset only occur when there is clear evidence that such a redesignation is appropriate Employee benefits Short-term employee benefits The cost of all short term employee benefits is recognised during the period in which the employee renders a related service. The provision for employee entitlement to annual leave represent the amount, which the Board has present obligation to pay as a result of employee s services, provided to the Statement of Financial Position date. Provision has been calculated at undiscounted amounts based on current salary rates. 155

158 1.10 Employee benefits (continued) Retirement benefits The Board contributes to a defined contribution plan. Contribution to defined contribution fund are charged to Statement of Financial Perfomance in the year to which they relate Provisions Provisions Provisions for performance bonuses are recorded in the financial statements when there is a present legal or constructive obligation to forfeit economic benefits as a results of events in the past and it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation and reliable estimate of the obligation can be made. The provision is measured as the best estimate of the funds required to settle the present obligation at the reporting date. The perfomamce bonus is only payable subject to the following conditions: (1) The employee has met the targets as required in their perfomance contractsnad (2) The entity has sufficient funds available to pay out performance bonuses. The provision for long service award is raised in terms of Human Resources Policy Contigencies Contigent assets and liabilities are not recognised. Contigencies are disclosed in note Revenue from exchange transactions Revenue is measured at fair value of the consideration received or receivable and represents the amount receivable in the normal course of business. Revenue is measured when it is probable that the economic benefits associated with the transaction will flow to the Board that can be reliably measured. An exchange transaction is one in which the Board receives fees charged from services rendered, recoveries of expenses incurred in the production of revenue and sundry income. Revenue from Exchange Transactions is recognised when they become due and is measured at fair value. The recognition is based on the status of completion of investigation per application Revenue from non-exchange transactions Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, an entity either receives value from another entity without directly giving approximately equal value in exchange, or gives value to another entity without directly receiving approximately equal value in exchange. 156

159 1.14 Revenue from non-exchange transactions (continued) Revenue from non-exchange transactions relates to grant funding from Provincial Department of Finance, Economy and Enterprise Development. Grant received or receivable are recognised when the resources that have been transferred meet the criteria for recognition as an assets. A corresponding liabilty is raised to the extend that the grant is conditional.the liabilities are transferred to revenue as and when the conditions to the grant are met. Grants without any conditions attached, are recognised as revenue when the asset is recognised Licence fees and Levies Licence fees and levies received represent licence fees and levies charged to licenced operators and are collected on behalf of the Department of Finance, Economy and Enterprise Development Comparative figures When the presentation or classification of items in the annual financial statements is amended, prior period comparative amounts are restated. The nature and reason for the reclassification is disclosed. Where accounting errors have been identified in the current year, the correction is made retrospectively as far as is applicable, and the prior year comparatives are restated accordingly Fruitless and wasteful expenditure Fruitless and wasteful expenditure means expenditure that was made in vain and could have been avoided had reasonable care been exercised. Fruitless and wasteful expenditure is accounted for as expenditure in the Statement of Financial Performance and where recovered, it is subsequently accounted for as revenue in the Statement of Financial Performance Irregular expenditure Irregular expenditure means expenditure incurred in contravention of, or not in accordance with a requirement of the PFMA. Irregular expenditure is accounted for as expenditure in the Statement of Financial Performance and where recovered subsequently accounted for as revenue in the Statement of Financial Performance Budget information The annual financial statements and the budget are on the same basis of accounting therefore a comparison with the budgeted amounts for the reporting period have been included in the Statement of comparison of budget and actual amounts. The explanation on the variance between the budget and the actual amounts has been provided. 157

160 1.20 Related parties Related parties are parties that control or significantly influence the Board in making financial and operating decisions. Specific information with regards to related party transactions is included in the disclosure notes. Management are those persons responsible for planning, directing and controlling the activities of the Board, including those charged with the governance of the Board in accordance with legislation, in instances where they are required to perform such functions Going concern These interim financial statements have been prepared on the assumption that the Board will continue to operate as a going concern for at least the next 12 months Payables from exchange and non-exchange transactions Payables from exchange and non-exchange transactions are recognised when the Board has a present obligation as a result of past events and it is problable that an outflow of resources embodying economic benefits will be required to settle the obligation. The unspent funds on the Socio-Economic Development Fund is recognised as a liability in the Statement of Financial Position as it represents the reduction in the ring -fenced balance in the Fund Events after reporting date Events after reporting date are those events, both favourable and unfavourable, that occur between the reporting date and the date when the financial statements are authorised for issue. 2. New standards and interpretations 158

161 10. NOTES TO THE ANNUAL FINANCIAL STATEMENTS 2.1 Standards and interpretations not yet effective or relevant The following standards and interpretations have been published and are mandatory for the entity s accounting periods beginning on or after 01 April 2017 or later periods but are not relevant to its operations: Standard/ Interpretation: Effective date: Years beginning on or after GRAP 18: Segment Reporting 01 April 2017 Relevant GRAP 20: Related parties 01 April 2017 Relevant Expected impact: GRAP 32: Service Concession Arrangements: Grantor 01 April 2016 Not Relevant GRAP 108: Statutory Receivables 01 April 2016 Relevant IGRAP 17: Service Concession Arrangements where a Grantor Controls a Significant Residual Interest in an Asset 01 April 2016 Not Relevant GRAP 16 (as amended 2015): Investment Property 01 April 2016 Not Relevant GRAP 17 (as amended 2015): Property, Plant and Equipment 01 April 2016 Relevant GRAP 109: Accounting by Principals and Agents 01 April 2017 Relevant GRAP 21 (as amended 2015): Impairment of non-cash generating assets Directive 12: The Selection of an Appropriate Reporting Framework by Public Entities 01 April 2017 Relevant 01 April 2018 Not relevant 159

162 3. Cash and cash equivalents Cash and cash equivalents consist of: 31 March March 2016 Petty cash 1, ABSA Admin Account 5,007,556 5,697,183 ABSA Call Account 29,997 29,533 ABSA Revenue Account 9,482,690 9,376,551 ABSA Credit card 176,687 68,813 Socio Economic Development Fund 4,988,597 6,247,869 19,687,363 21,420,714 Included in cash and cash equivalent is the funds relating to the cash received on behalf of the Department of Economy and Enterprise Development in the form of levies and taxes; and Socio Economic Development Fund which is not available for use by the entity. The newly proposed Socio Economic Development Fund intend to promote meaningful contribution of the gambling industry towards sustainable socio-economic development programmes in the North West Province. Contributions to the Fund is from the licensees and therefore not part of the Government Grant. 4. Receivables from exchange transactions Trade debtors 1,893,160 1,895,271 Rent deposit 199, ,491 Staff telephone recoveries 18,958 13,755 2,111,609 2,108,517 Fair value of trade and other receivables from exchange transactions Trade and other receivables 2,111,609 2,108,517 Trade and other receivables from exchange transactions Trade and other receivables which are less than 3 months past due are not considered to be impaired. At 31 March

163 4. Receivables from exchange transactions (continued) 31 March March 2016 The ageing of amounts past due but not impaired is as follows: 1 month past due 487,973 1,531,064 3 months past due 1,623, , Receivables from non-exchange transactions Levies and taxes 8,514,437 28,009,735 Fair value of receivables from non-exchange transactions Other receivables from non-exchange transactions 8,514,437 28,009,735 The fair value of receivables from non-exchange transactions approximates their carrying amounts. Casino levies, taxes and other receivables 3 to 6 months 8,514,437 28,009, Prepayments Prepayments 623, ,016 Fraudulent transactions , , Inventories Stationery and consumables on hand 293, ,118 Inventories recognised as an expense during the year 1,023, ,784 Stationery and consumables comprises of stationery for distribution to staff during the course of work. Stationery and consumables are measured at lower of cost and net replacement value. 161

164 8. Property, plant and equipment Cost / Valuation Accumulated depreciation and accumulated impairment Carrying value Cost / Valuation Accumulated depreciation and accumulated impairment Accumulated depreciation and accumulated impairment Office furniture 2,930,501 (783,592) 2,146,909 2,723,588 (750,975) 1,972,613 Motor vehicles 867,851 (95,542) 772, ,951 (69,193) 308,758 Office equipment 3,391,328 (995,583) 2,395,745 2,879,555 (659,759) 2,219,796 Computer equipment 3,691,721 (1,354,721) 2,337,000 3,304,342 (1,014,484) 2,289,858 Leasehold improvements 1,390,142 (995,406) 394,736 1,164,428 (356,333) 808,095 Total 12,271,543 (4,224,844) 8,046,699 10,449,864 (2,850,744) 7,599,120 Reconciliation of property, plant and equipment - March 2017 Opening balance Additions Disposals Depreciation Total Office furniture 1,972, ,220 (114,516) (224,408) 2,146,909 Motor vehicles 308, ,900 - (26,349) 772,309 Office equipment 2,219, ,227 (18,665) (364,613) 2,395,745 Computer equipment 2,289, ,033 (126,134) (520,757) 2,337,000 Leasehold improvements 808, ,714 - (639,073) 394,736 Reconciliation of property, plant and equipment ,599,120 2,482,094 (259,315) (1,775,200) 8,046,699 Opening balance Additions Disposals Depreciation Total Office furniture 1,564, ,341 (103,258) (172,706) 1,972,613 Motor vehicles 335, (26,349) 308,758 Office equipment 1,809, ,689 - (248,412) 2,219,796 Computer equipment 1,996, ,800 (53,205) (402,725) 2,289,858 Leasehold improvements 593, ,256 - (307,850) 808,095 6,299,539 2,614,086 (156,463) (1,158,042) 7,599,

165 9. Operating lease liability 31 March March 2016 Office building Operating lease accrual 136, ,104 The Board rents office buildings from Pizzazz Investment 2 (Pty) Ltd (Pizzazz) under the operating lease with an escallation rate of 9% per annum for a period of five years effective from 1 August The lease expires on the 31 July Pizzazz sold the property under lease to Senatla Investment Capital Pty LTD (Senatla) during the 2014/2015 financial year. The lease agreement was ceded to Senatla in October 2014 and an addendum was duly signed between the Board and Senatla. 10. Payables from exchange transactions Other payables - Investigation fees 123, ,100 Other payables - Suppliers 1,430,006 2,501,023 1,553,350 2,782,123 The fair value trade and other payables approximates their carrying amounts. 11. Taxes and transfers payable (non-exchange) License fees received in advance 2,829,800 2,756,250 Provincial Department of Finance Economy and Enterprise Development, 10,918,380 29,298,228 13,748,180 32,054,478 Fair value of taxes and transfers payable (non-exchange) Taxes and transfers payable (non-exchange) 13,748,180 32,054,478 The fair value of taxes and transfers payable (non-exchange) approximates their carrying amounts. 12. Investigation Fees: Deposit Heading Investigation Fees: Deposit 1,623,522 1,691,

166 13. Accruals Reconciliation of provisions - 31 March2017 Opening Balance Additions Utilised during the year Leave accrual 1,583,807 1,179,479 (853,193) 1,910,093 Total Reconciliation of leave accrual - 31 March 2016 The leave accrual relate to the Board s estimated liability arising as a result of services rendered by employees. Opening Balance Additions Utilised during the year Leave accrual 1,305, ,736 (352,898) 1,583,807 Total 14. Other revenue 31 March March 2016 Other recoveries 4,159 14,142 Tender application fees 14,400 14,000 Insurance Recovery 35,465 16,117 Travel cost recoveries 40, ,104 94, ,

167 15. Investigation Fees 31 March March 2016 Investigation fees Investigation Fees 4,365,229 5,863, Revenue Investigation Fees 4,365,229 5,863,131 Other income 94, ,363 Interest received - bank accounts 609, ,501 Government grant 77,154,000 64,661,000 82,222,947 70,909,995 The amount included in revenue arising from exchanges of goods or services are as follows: Investigation Fees 4,365,229 5,863,131 Other revenue 94, ,363 Interest received - bank accounts 609, ,501 5,068,947 6,248,995 The amount included in revenue arising from non-exchange transactions is as follows: Taxation revenue Taxation revenue Government grant 77,154,000 64,661,

168 17. Government grants and subsidies 31 March March 2016 Government grant 77,154,000 64,661,000 Government grant Original allocation 77,154,000 52,661,000 Adjustment budget - 12,000,000 77,154,000 64,661, Personnel costs Basic salary 27,193,650 22,489,397 Performance bonus 2,736,457 2,061,235 Medical aid contributions 2,648,694 2,245,821 Compensation commission 188,012 47,390 Leave pay expense 326, ,838 Provident fund contribution 4,770,866 3,874,437 Long-service awards 803,318 1,259,677 38,667,284 32,255,

169 18. Personnel costs (continued) 31 March March 2016 Chief Executive Officer (FS Sekgaphane) Basic Salary 1,969,247 1,873,104 Performance Bonuses 207, ,676 Medical aid 38,471 30,584 Cellphone allowance 25,188 18,000 Travel and subsistence 310, ,854 2,550,739 2,495,218 Chief Operations Officer (MP Mothiba) Basic salary - 1,362,292 Termination leave - 221,245 Performance Bonuses - 99,253 Provident fund - 87,576 Medical aid - 51,089 Cellphone allowance - 8,800 Travel and subsistence - 120,181-1,950,436 The Chief Operating Officer resigned on the 15th of February

170 18. Personnel costs (continued) 31 March March 2016 Chief Financial Officer (Seipone Motlhamme) Basic salary 1,011, ,445 Performance Bonuses 106,172 - Provident fund 75,837 71,883 Acting allowances 2,619 - Cellphone allowance 17,590 9,600 Travel and subsistence 239, ,480 1,452,452 1,170,408 Legal Manager (J Montshioa) Basic salary 876, ,235 Performance Bonuses 92,071 70,655 Provident fund 65,765 62,343 Medical aid 19,182 17,888 Cellphone allowance 13,595 9,600 Acting allowance 11,971 21,995 Travel and subsistence 431, ,363 1,511,203 1,249,

171 18. Personnel costs (continued) 31 March March 2016 Corporate Services Manager(S Motlhabane) Basic Salary 826,992 - Provident fund 62,024 - Cellphone allowance 15,990 - Travel and subsistence 117,919-1,022,925 - Audit and Systems Manager (K Monate) Basic salary 951, ,740 Performance Bonuses 118,945 82,675 Provident fund 71,367 57,281 Medical aid 46,115 28,668 Cellphone allowance 9,600 9,600 Long Service award 19,309 - Travel and subsistence 289, ,010 1,506,694 1,325,

172 18. Personnel costs (continued) 31 March March 2016 Investigating and Licensing Manager (T Mathebula) Basic salary 707, ,281 Provident fund 53,026 49,821 Medical aid 26,658 24,260 Cellphone allowance 10,595 9,600 Travel and subsistence 162, , , ,170 Gaming Control Manager (S Mogapi) Basic salary 698, ,758 Performance Bonuses - 55,739 Provident fund 52,389 49,182 Medical aid 36,008 33,413 Cellphone allowance 9,600 9,600 Travel and subsistence 305, ,347 Long service award - 13,115 1,101,568 1,087,

173 31 March March Administrative expenses Advertising 5,132,433 10,930,146 Auditors remuneration 2,184,979 2,958,169 Bank charges 66,711 77,808 Cleaning 306, ,743 Computer expenses 439, ,514 Consulting and professional fees 10,428,535 2,597,175 Entertainment 53,011 44,758 Gifts and donations Transport hire - 96,873 Insurance 241, ,578 Motor vehicle expenses 71,829 34,164 Board members fees 1,504,378 1,523,628 Postage and courier 4,431 4,832 Printing and stationery 1,250, ,128 Security 305, ,404 Staff welfare 583, ,416 Subscriptions and membership fees 197, ,132 Telephone and fax 2,552,365 1,375,294 Training 873, ,791 Travel - local 8,423,914 7,303,474 Travel - overseas 2,511,382 2,030,329 Loose tools 29,953 35,426 Electricity 635, ,580 Credit checks 43,398 87,511 Relocation costs 49,616 66,315 Repairs and maintenance 605, ,071 Venue expenses 423, ,036 38,920,712 34,286,

174 31 March March Operating deficit Operating deficit for the qaurter is stated after accounting for the following: Operating lease charges Premises - Contractual amounts 3,779,027 3,385,419 Equipment - Contractual amounts 27,299 27,299 3,806,326 3,412,718 Loss on disposal of assets (259,314) (156,463) Depreciation on property, plant and equipment and amortisation of intangible 1,775,200 1,158,041 assets Personnel costs 38,667,284 32,255, Auditors' remuneration External audit fees 1,727,886 2,518,028 Internal audit fees 457, ,141 2,184,979 2,958,

175 31 March March Cash generated from operations Deficit (1,205,889) (359,317) Adjustments for: Depreciation and amortisation 1,775,200 1,158,041 Loss on sale of assets 259, ,463 Movements in operating lease assets and accruals (355,436) (96,403) Movements in leave payable 326, ,838 Movement in the provisions 1,447,752 1,766,787 Changes in working capital: Inventories Inventories 160,398 (303,939) Receivables from exchange transactions (3,092) (1,128,038) Receivables from non-exchange transactions 19,495,298 (20,275,124) Prepayments (289,029) (2,841) Payables from exchange transactions (1,228,772) 838,136 Taxes and transfers payable (non exchange) (18,306,298) 20,841,364 Invetigation fees - deposit (67,717) 1,691,239 Increase/decrease: Socio Economic Development Fund (1,259,272) 6,247, ,743 10,812,

176 31 March March Operating lease commitments Office building Minimum lease payments due - within one year 1,081,720 3,155,844 - in second to fifth year inclusive - 1,081,720 1,081,720 4,237,564 The Board rents office building from Senatla Capital (Pty) (Senatla) Ltd under the operating lease with an escalation rate of 9% per annum for a period of five years effective from 1 August The lease expires on the 31 July The original lease was entered into with Pizzaz Investment and through the sale and cession during the current year, an addendum has been signed with Senatla. Rustenburg office Minimum lease payments due 424, ,113 The Board rents office building from New Heights under the operating lease with an escalation rate of 10% per annum for a period ofone years effective from 1 March 2016., with the option of renewal for further twelve (12) months. 174

177 31 March March Related parties Relationships Controlling entity Department of Economy and Enterprise Development Related party balances Amount owed Department of Economy and Enterprise Development 13,748,180 32,054,478 Related party transactions Grant received Department of Economy and Enterprise Develepment 77,154,000 64,661,000 Cash surrendered Department of Economy and Enterprise Develepment 139,001, ,799,149 Sponsorship Department of Culture, Arts and Traditional affairs - 491,

178 25. Members' emoluments Board Members 31 March 2017 Board fees Local travel and subsistence Cellphone allowance L Vere (Chairperson) 414, ,443 25, ,726 L. Seepe (Deputy Chairperson) 174, ,637 25, ,205 T. Mathe 92,747 12,290 15, ,027 N. Maharaj 178, ,602 15, ,046 T. Kgomo 5,775 4,896-10,671 C. Kgorane - (In Public Service) H. Mashao - (In Public Service) 11,550 22,892-34,442 SM Reddy - (In Public Service) - 17,936-17,936 FS. Sekgaphane - (Ex-officio) J. Montshioa (Secretariat) , ,696 82,356 1,560,053 Total 176

179 25. Members emoluments Board Members (continued) 31 March 2016 Board fees Local travel and subsistence Cellphone allowance L. Vere (Chairperson) 198,975 38,480 4, ,655 L. Seepe (Deputy Chairperson) 214, ,043 7, ,861 T. Mathe 82,593 15,883-98,476 N. Maharaj 130, , ,114 T Kgomo 168, ,378 3, ,136 C. Kgorane - (In Public Service) - 25,165-25,165 SM. Reddy H. Mashao (In public service) - 21,636-21,636 NI Kunene - (In Public Service) - 14,620-14,620 M Jansen Mwase (In Public Service) FS Sekgaphane - (Ex-officio) , ,516 14,400 1,253,663 Total 177

180 25. Members emoluments Board Members (continued) Board's Committees 31 March 2017 Committees fees Travel and subsistenece T. Mathe 26,163 7,929 34,092 TL. Moromane 25,260 24,002 49,262 G. Diutlwileng 19,590 70,330 89,920 MV. Mokgobinyane 21,720 7,720 29,440 Z. Mothibe 16,050 13,517 29,567 N Maharaj 2,888 7,538 10, , , , Members emoluments (continued) 31 March 2016 Committees fees Travel and subsistenece L. Seepe (Deputy Chairperson) 7,080-7,080 N. Maharaj 14,160 10,990 25,150 T. Mathe 13,825 4,343 18,168 TL. Moromane 37,570 21,409 58,979 G. Diutlwileng 28,320 59,528 87,848 MV. Mokgobinyane 24,780 9,605 34,385 Z. Mothibe 26,670 11,686 38, , , ,966 Total Total 178

181 26. Risk management Liquidity risk The Board manages risk through an ongoing review of future commitments. Cash flow forecast is prepared and monitored. The Board receives an annual grant and therefore not exposed to liquidity risk. Credit risk Credit risk consists mainly of cash deposits and cash equivalents. The Board only deposits cash with major banks with high credit standards. The Board has therefore no concentration of credit risks. The Board maximum exposure to credit risk is equal to the cost amount of financial assets at balance sheet date and is summarised as follows: Financial instrument Financial assets-receivable from non exchange transaction 8,514,437 28,009,735 Financial assets-receivable from exchange transaction 2,111,609 2,110,346 Financial assets-prepayments 623, ,035 Cash and cash equivalents 19,687,363 21,420,714 Financial liabilities-payables (exchange transation) (1,553,349) (2,782,120) Financial liabilities-payables (non-exchange transation) (13,748,180) (32,054,478) Financial assets by catergory At amortised cost At fair value At cost Receivables from non-exchange transactions - 8,514,437 - Receivables from exchange transactions - 2,111,609 - Prepayments - 623,064 - Cash and cash equivalents - 19,687, ,936,

182 26. Risk management (continued) Financial liabilities by category At fair value At amortised At cost Total cost Payables (exchange) 1,553, ,553,349 Payables (non-exchange) 13,748, ,748, Going concern 15,301, ,301,529 The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liablities, contigent obligations and commitments will occur in the ordinary course of business. 28. Events after the reporting date There were no events after the reporting date that could materially affect the financial statements. 29. Fruitless and wasteful expenditure Opening balance 34,661 34,661 Incurred during the year 19,045 6,509 Amount recoverable (11,010) (6,509) Amount written off (34,661) - 8,035 34,661 Fruitless and Wasteful expenditure incurred during the period of reporting resulted from the interest on overdue accounts and traffic fines. Individual transactions were investigated and the results were either a write off or staff members who acted negligently were held responsible, whereby the expenses will be recovered from their salaries. The process of writing off the opening balance is underway. 180

183 30. Irregular expenditure Opening balance 3,244,125 - Irregular expenditure incurred during the year 7,191,725 3,244,125 10,435,850 3,244,125 Irregular expenditure incurred relates to procurement of consultant services for both financial years. The investigation is in progress to determine whether to condone or to recover. 31. Provisions Perfomance bonuses 2,736,457 2,061,235 Long Service awards 3,756,746 2,984,216 6,493,203 5,045,451 Performance Bonuses Reconciliation Opening Balance 2,061,235 1,541,010 Increase in provision 2,736,457 2,061,235 Amount used (2,061,235) (1,541,010) 2,736,457 2,061,235 Current portion of provision for long service awards 168,415 25,327 The perfomance bonus provision is raised in terms of Human Resources Policy on Performance Management, and the payouts are dependent on the final moderated individual and organisational performance scores which are approved by the entity in September each year. Payouts are also limited to the availabilty of funds/budget at the time. 181

184 31. Provisions (continued) Long service awards reconciliation Opening balances 2,984,216 1,724,539 Increase in provision 803,318 1,272,792 Amount used (30,788) (13,115) Less current portion (168,415) (25,327) 3,588,331 2,958,889 The provision for long service award is raised in terms of Human Resources Policy. The current portion relates only to employees who qualifies for long service award in the next twelve months. The non current portion has been discounted and adjusted for the probability of staff leaving the employ of the entity before they are eligible for an award. 32. Contingencies The Board has pending labour realtions case and CCMA ruled that the Board will pay the remuneration amounting to R The matter is still before the Labour Court. 33. Budgetary basis, period and scope The budget is approved on a cash basis by functional classification. The approved budget covers the fiscal period of 1 April 2016 to 31 March

185 34. Reconciliation between budget and statement of financial performance Reconciliation of budget surplus/deficit with the surplus/deficit in the statement of financial performance: Net deficit per the statement of financial performance (1,205,889) (359,317) Adjusted for: Non budgeted income item: operating income (4,374,225) (6,021,805) Investment income (609,649) (217,501) Loss/gain on the sale of assets - 156,463 Operating activities: operating expenses 6,189,763 6,442,160 Net surplus per approved budget Satement of Comparison of Budget and Actual Amounts Other non tax revenue Revenue classified as other non-tax revenue relates to recovered amounts from investigations performed on behalf of applicants and licensees. Investigations are ad-hoc and thus not budgeted for. Compensation of Employees The Board spend within the budget on the Compensation of employees in the period under review. The Board overspend on the Goods and services due to increase of official public notices and travelling and subsistence relating to processing of licensing applications received as well as the out-sourced investigations. The amount of R5.5 million as re-allocation of funds ( Accummulated investigation fees and interest received) was approved by the Accounting Authority for utilisation on goods and services. 183

186 36. Unspent: Socio Economic Development Fund. The unspent Socio Economic Development Fund is the remaining balance of the ex-gratia payment from Sun International. The establishment of the Fund is not yet finalised. However a bank account was opened and it was used for this specific payment as per the settlement agreement between the Board and the Licensee. The funds in the account are kept on behalf of the Socio Economic Development Fund and the balance will be transfered on the finalisation of the establishment of the Fund. The cash and cash equivalents in Note 3 include an amount of R which is the balance after the the payment of R that was paid for Masutlhe Project and other Projects as at 31 March 2017, as well as the bank charges and the credit interest from the bank. 36. Unspent: Socio Economic Development Fund. (continued) Socio Economic Development Fund comprises of: Unspent fund - Socio Economic Development 4,988,597 6,247,869 Balance at the beginning of the 6,247,869 - Additions during the - 7,100,000 Interest received from the account 15,817 4,969 Bank charges (1,778) (840) Socio Economic Development - Mahika Mahikeng - (491,000) Socio Economic Development - Bray July (498,401) (365,260) Socio Economic Development-Masutlhe Project and other Projects (774,910) - 4,988,597 6,247,

187 37. Prior period errors Correction of error in prepayments and investigation fees The Board did not derecognise the prepayments from prior year. This resulted in an error in the prior years accumulated surplus, as the expenditure was understated, and the Board did not charge the vat when recognising the revenue from the expenditure incured on advertising, therefore this resulted in an error in the prior years accumulated surplus as revenue was under stated. Provisions for performance bonuses and long service awards for 2015/16 financial year was not disclosed. The error adjustment is as follows: Statement of Financial Position - 217,862 Decrease in accummulated surplus - (217,862) Decrease in prepayments - 11,518 Decrease in investigation fees deposit - (1,829) Decrease in accou nts recievable from non exchange - (9,689) Increase in accumulated surplus - (5,045,451) Provisions - 5,045,451 Decrease in accumulated surplus - - Statement of Financial Performance Increase in administrative expenses - 192,072 Increase in employee related costs - 25,790 Decrease in surplus for the year - 217,862 Increase in revenue - (9,689) Increase in surplus for the year - (9,689) Increase in employee ralated cost - 1,766,787 Decrease in surplus for the year - 1,766,787 Correction of error of Irregular Expenditure Irregular expenditure incurred - 3,244,

188 186

189 TEN YEAR COMPARITIVE PERFORMANCE REPORT 187

190 Programme 1 INVESTIGATIONS AND LICENSING GAMBLING MODES / / / / / / / / / / Casinos Route Operators Amusement Machine Operator Bookmaker Operators Totalisator Brances & Agencies Independent Site Operator Totalisator Operator Bingo Operators Site operators Certificate of Suitability 188

191 Programme 2 GAMBLING CONTROL DEPARTMENT MACHINES TABLES Sun City The Carousel Casino Rio Casino Mmabatho Palms Sun City The Carousel Casino Rio Casino Mmabatho Palms 189

192 Programme 2 GAMBLING CONTROL DEPARTMENT (continued) ILLEGAL GAMBLING Number of Raids Confiscated Gambling Computers Confiscated Gambling Machines Confiscated Gambling Tables Machines Destroyed Machines/Computers Returned 190

193 Programme 3 GAMBLING AUDIT AND SYSTEMS GROSS GAMBLING REVENUE Gross Gambling Revenue (GGR) has grown by 60% from R939 million in 2007/08 Financial Year to R1.5 billion in 2016/17 Financial Year (Table 1 and Fig 1). Figure 1 Table 1 FINANCIAL YEAR GGR 2007/ / / / / / / / / / / / / / / / / / / /

194 Programme 4 LEGAL SERVICES BOARD STRUCTURE AND GOVERNANCE During the period from 2008 to 2012 the Board consisted of six (6) members as opposed to nine (9) members as per the provisions of section 5(1) of the North West Gambling Act, 2001 as amended. The vacancies on the Board posed a serious challenge as at times it led to meetings of the Board being postponed due to lack of quorum and this affected the effective functioning of the Board. The few members of the Board available had to stretch themselves between various committees of the Board, and this resulted in one (1) member having to serve on three (3) different Committees. The Board at the time had three (3) Committees namely, Audit and Risk, Human Resources and Technical Committee. The year 2012 saw the expiry of the term of office of the Board members, and the appointment of new Board members during the month of October and all efforts were made by the Responsible Member that there is full complement of Board members with requisite skills as required by the relevant provisions of the Act. The above led to the Board working effectively as its Committees were sufficiently staffed with the requisite number of members. The Board was further able to develop a Board Charter and furthermore delegate some of its responsibilities to the Chief Executive Officer. Board members further subscribed to Institute of Directors for Southern Africa (IODSA), to which they received training on responsibilities of directors and had access to newsletters on corporate governance. As part of good governance as espoused in King Report, the performance of the Board was assessed by IODSA. 192

195 Programme 5 FINANCE DEPARTMENT BUDGET: 2007/08 TO 2016/17 FINANCIAL YEAR (10 YRS) The Budget has grown by 65% from R12.2 million in 2007/08 Financial Year to 7.2 million in 2016/17 Financial Year (Table 1 and Figure 1). Figure 1 Table 1 FINANCIAL YEAR BUDGET 2007/ / / / / / / / / / / / / / / / / / / /

196 Programme 7 CORPORATE SERVICES 7.1 HUMAN RESOURCES STAFF COMPLIMENT PER YEAR Permanent Non-Permanent Total STAFF MOVEMENTS Appointments Resignations Promotions Appointment includes temporary employees and internship students Resignations included contracts that ended. Promotions includes temporary employees who became permanent 194

197 Programme 7 CORPORATE SERVICES 7.1 HUMAN RESOURCES (CONTINUED) GRANT VS COMPENSATION R R R R R R R R R R / 2008 YEAR / 2009 YEAR / 2010 YEAR / 2011 YEAR / 2012 YEAR / 2013 YEAR 6 R R / 2014 YEAR / 2015 YEAR 8 R R / 2016 YEAR / 2017 YEAR 10 R R R R R R R R R R R R R R R R Total budget Compensation 195

198 Programme 7 CORPORATE SERVICES 7.2 CORPORATE RELATIONS MANAGEMENT Illegal gambling operations in the Province are at this stage of re-organising and asserting themselves in different forms to avert our interventions. They however, remain a serious threat to licensed or legal operations and the rule of law in our Province. We have as a Board made strides to deal with such and in the past ten (10) years made efforts in respect of promotion of responsible gambling in the Province and this also covered general engagements with the public on the activities of the Board. Although our structure made provision for a Corporate Relations function, the said unit only fully operated in the 2013/14 financial year. The department which was then not adequately staffed managed to conduct meaningful awareness and education programs. In the main, the said unit was not adequately funded and therefore the roll-out of the campaigns improved in phases per financial year given the human resources and budget Awareness Campaigns 196

199 NOTES 197

200 NOTES 198

201 NOTES 199

202 200

203 NWGB Hotline Number Website HEAD OFFICE Physical Address 131 University Drive, Mmabatho, 2735 Postal Address Private Bag X34, Mmabatho, 2735 Telephone Number Facsimile Number REGIONAL OFFICE Physical Address 67 Brink Street, Rustenburg, 0299 Telephone Number Facsimile Number SIGNS OF PROBLEM GAMBLING Spending more time or money on gambling than intended. Borrowing or stealing money to fund gambling. Missing work or school or other commitments to gambling. Gambling more to recover your losses. Feeling worried, anxious and moody when you are not gambling. Family relationships breaking down because of debt and dishonesty. Hiding your gambling from others, but unable to stop gambling. Gambling with ever bigger amounts to reach desired level of excitement. THE BOARD PROMOTES AND ENCOURAGES RESPONSIBLE GAMBLING

204 Physical Address 131 University Drive Mmabatho 2735 Private Bag X34 Mmabatho 2735 Business Hours Monday to Friday 08h00-17h00 Tel: +27 (18) Fax: +27 (18) PR194/2017 ISBN: