By F.S. LAMINIE (CHAIRPERSON: FINANCE AND COMMERCIAL SUB- COMMITTEE,)

Transcription

1 SWD CRICKET NPC REPORT ON THE FINANCIAL STATEMENTS: 2016/17 By F.S. LAMINIE (CHAIRPERSON: FINANCE AND COMMERCIAL SUB- COMMITTEE,) In the presentation of the audited financial statements for the 2016/17 financial year, as ended on 30 April 2017, it is important to explain and highlight to all stakeholders the following: The Board of Directors of SWD Cricket NPC is responsible for the preparation and integrity of the Annual Financial Statements in accordance with International Financial Reporting Standards for Small and Medium-sized Entities (IFRS for SME s) that fairly presents the state of affairs of the company, and other information contained in this report. The Finance and Commercial Sub-Committee, reporting to the Board of Directors on a regular basis, plays an important oversight role in all matters relating to financial administration and internal financial control, the application of prudent and appropriate accounting policies and reporting requirements. The 2016/2017 financial year was very successful when compared to the previous year. The company recorded a surplus of R 329,395 compared to R 81,917 in the prior year. An increase of 300%. This surplus can be attributed to a number of significant cricket events hosted, as well as special awards from Cricket South Africa (CSA). Firstly, the CSA Operational Scorecard Incentive award of R 1,466,800 was a big boost to our cash flow and it also enabled us to incentivize all role players for their hard work and contribution towards the 2 nd place achieved on the 2015/2016 scorecard. CSA again awarded all affiliates with R1 mil once-off funding. High profile cricket events like the CSA Africa T-20 Cup, the Franchise Academies Tournament and the CSA U/19 International ODI series against Sri Lanka U/19, presented an opportunity to record substantial surpluses. The CEO together with the local organizing committees for these events must be commended for the management of the costs which enabled the company to maximize surplus without compromising on the quality. The continued support of our sponsors and media partners enabled us to attract additional funding and save on media related expenditure as well as additional capital expenditure. We recorded total sponsorship income for the year off R 556,991 which is R 172,640 more than the previous year. This includes Canon s R 120,000 as team sponsor for our Africa T-20 Cup campaign. Our effective implementation and monitoring of policies and systems (on governance- as well as management level) ensured that reporting requirements for the 13 th and 14 th payments from CSA was always met, which ensured prompt receipt of funding. CSA also awarded affiliates with stadium equipment during the past financial year. SWD Cricket NPC benefited to the value of R 1,350,000 in stadium equipment. These additional funds enabled the Board to expand our expenditure on operational and amateur cricket programs. More than R 3mil was also spend on capital projects. The company supplied new pitch covers to a number of clubs, made vital upgrades to club practicing facilities for the Hub and RPC programs.

2 Unfortunately the new extended lease agreement with the Oudtshoorn Municipality was not concluded by the end of the 2017 financial year; despite continues engagement with municipality officials by both the CEO, Chairman of the Board of Directors and the Lead- Independent Director. This continues to negatively affect the financial statements. Thankfully we have recently received the draft lease agreement that will be in place for 9 years and 11 months and it should be signed shortly. I am pleased to report, again, that the financial statements have received an unqualified audit report for the 2016/2017 financial year. I would like to thank and congratulate all the role players that contributed in achieving this pleasing outcome; especially the staff directly involved in the finance department. Thank you for all your efforts. Financial Overview STATEMENT OF FINANCIAL POSITION ASSETS Property, plant and equipment carrying values R ,724, ,308, The increase of R 2,416,458 is due to the additions to owned assets (of which stadium equipment was the most significant) and leasehold improvements to the stadium buildings and electronic scoreboard. The company also disposed of a vehicle and trailer and a profit of R 25,652 was recorded. Intangible Assets Intangible assets at year-end is R nil, which is the same as the balance for This is due to amortisation written-off during the year. The reason for the zero balance at year-end is because the agreement with Kempston Motors is year-on-year. With no agreement longer than 12 months, there is no certain future economic benefit for the organisation. Investments in associates This represents the shareholding in Western Cape Cricket (Pty) Ltd unchanged from the prior year. Trade and other receivables ,286, , Trade and other receivables increased significantly (130%) from the previous year. The most significant is CSA revenue (including the IPL Hamer Fee) and fees owed by Western Cape Cricket (Pty) Ltd. All funds receivable from CSA has been received by the date of this report.

3 Cash and cash equivalents , ,022, A decrease of R 2,034,483 is recorded from the previous year. It must be mentioned that R 2,5m of the 2016 balance represented money already dedicated to projects. RETAINED EARNINGS ,272, , The increase is due to a surplus recorded in the 2017 financial year. LIABILITIES Non-current Liabilities , , The decrease is due to the normal repayment of the hire purchase agreement. Deferred Income ,460, ,507, Deferred income has increased by R 952,734 from the previous year. The increase is mainly attributed to the CSA Stadium Equipment Funding of R 1,350,000. Included in the balance is R 547,428 of NLDTF Grant 65464, which consists of R 465,00 capital project earmarked for Academy infrastructure and R 82,428 for Capacity building and support to clubs. Current liabilities Provisions , , The increase is due to leave days accrued to permanent employees at 30 April Trade and other payables , ,732.00

4 A decrease is recorded in Trade and other payables. The balance at year end consists mainly of trade creditors and honoraria. STATEMENT OF COMPREHENSIVE INCOME REVENUE REVENUE CSA Revenue Total ,123, Total ,630, Increase in Rand 4,493, Percentage Increase 38.64% Some of the significant movements consist of: i) CSA Amateur funding increased by 8.79%, from R 6,484,615 to R 7,054,300. ii) CSA Africa T-20 Cup increased by R 995,333 from the prior year. iii) CSA Franchise Academies tournament income increased by R 125,026. iv) CSA Gate revenue decreased significantly by R 214,457. v) The incentive award of R 1,466,800. vi) CSA Incentive program was recognized previous year R 600,000. The new incentive award of R 1,466,800 will only be recognized in the 2016/2017 financial year. vii) CSA International Tournaments of R 374,960. viii) CSA IPL Hamer Fee decreased by R 166,393. ix) CSA Special Once-off funding increased by R 865,615 from x) CSA Stadium Equipment Funding of R 234,378. xi) CSA Transformation Funding decreased by R 356,500. xii) CSA Transport Subsidy of R 220,000. xiii) Other CSA Tournament Income of R 169,575. Other Income Total ,314, Total ,626, Decrease in Rand (R 311,840.00) Percentage decrease (19.17%) Decrease of R 311,840 compared to 2016 mainly due to the decrease in the grant income recognized. The notable increase in investment income (R 50,700) and Sponsorships (R 172,640) was very pleasing to see.

5 EXPENSES ,388, ,477, Increase in Rand 3,911, Percentage increase 29% With the increase in revenue and the number of high profile cricket events hosted by SWD Cricket during the last financial year, the expenditure similarly increased. Some of the significant expenditure items should be highlighted: Administration costs (equipment rental and other administrative costs) 828, Africa T-20 Cup expenses (hosting of group B and finals) 990, Board of directors expenses (incentive and meetings CSA and Cobras) 577, Club cricket (incentive distribution, increase in club amateur allowance) 1,185, Cricket Hubs (transport, balls and facilities maintenance and preparation) 467, CSA provincial challenge expenses 1,256, Depreciation 633, Franchise academies week 558, Human resources 6,140, Other CSA tournament expenses (u/19 international matches) 636, Youth cricket 1,157, SURPLUS / (DEFICIT) FOR THE YEAR , ,915.00