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					SWD CRICKET BOARD

REMARKS TO THE FINANCIAL STATEMENTS: 2010/11

By LLUWELLYN COETZEE (TREASURER SWD CRICKET BOARD)
___________________________________________________________________

In the presentation of the audited financial statements for the 2010/11 financial year, as
ended on 30 April 2011, it is of importance to explain and highlight to all stakeholders
the following:

1.    The Executive Committee of the SWDCB is responsible for the preparation and
      integrity of the Annual Financial Statements that fairly present the state of affairs
      of the Board, and other information contained in this report.

             The Executive Committee sets policies and principles and management
              (the Chief Executive Officer) implements systems of internal control and
              information systems in a cost effective manner.

             The Finance Committee, reporting to the Executive Committee on a
              regular basis, plays an important oversight role in all matters relating to
              financial administration and internal control, accounting policies and
              reporting requirements.

             The independent appointed auditors who are responsible to report on the
              Financial statements conducted an audit in accordance with statements of
              South African Auditing Standards. Those standards require that an audit
              be performed to obtain reasonable assurance that the financial statements
              are free of material misstatement.

             As from the 2009/10 Financial Year an Audit Committee was appointed.
              The duties and responsibilities of the members of the committee as set out
              are in addition to those duties and responsibilities of the Executive
              members. The deliberations of the committee do not reduce the individual
              and collective responsibilities of the board members in regard to their
              fiduciary duties and responsibilities, and they must continue to exercise
              due care and judgment in accordance with their legal obligations.

              The overall function of the committee is to assist the directors in
              discharging their responsibilities:

                    -   Relating to the safeguarding of assets, the operation of
                        adequate and effective systems and control
                    -   Processes, the preparation of fairly presented financial
                        statements in compliance with all applicable Legal and regularity
                        requirements and accounting standards,
                  -   and the oversight of the of the external
                  -   And internal audit appointments and functions.

     The committee is an advisory committee and not an executive committee. As
     such it must not perform any management functions or assume any management
     responsibilities and shall have an objective, independent role.

1.   The financial figures of the Board shows a nett profit of R184,634 versus a profit
     of R218,416 for the previous financial year. This also underlines the healthy
     cash flow position as stipulated in the Balance Sheet.

2.   Provision is made for Reserves of R303,305 - which reflects as cash in the bank
     which were specifically dedicated to the following projects in the 2010/11
     Financial Year:

     a.    Transfer to SWD Cricket Academy:         R120,000

     b.    Transfer to Electronic Score Board:      R100,000

     c.    Transfer to Procurement of Vehicle:      R20,000

     d.    Transfer of Nets for Bongolethu:         R40,000

     e.    Transfer to Stadium Development:         R23,305

3.   The cash and equivalents at the end of the Financial Year (on 30 April 2011)
     representing a total of R1,312,777 was:

     a.    Cash on Hand (Petty Cash):               R679

     b.    Bank Balance (Current Account):          R187,908

     c.    Call Account:                            R1,124,190

4.   The budget allocation, in terms of amateur funding, is done according to
     expenditure guidelines from Cricket South Africa. CSA, on an annual basis
     conducts an audit to determine whether affiliates comply in terms of
     expenditures with reference to specific cricket programmes (Mini Cricket,
     Regional programs, Central Place Cricket Centres) administrative expenses, club
     cricket, schools/youth and women’s cricket.

     The grant to clubs in terms of CSA funding used (R141,350 in 2010/11 versus
     R56,453 in 2009/10) represents an increase of 150.38%. The CSA Amateur
     allocation guideline required an allocation of R373, 183 for programs to clubs
     (including grants) and the operations thereof. The total allocation in 2010/11 is
     made up of:
     a.    Total allocation to clubs: R169,934

     b.    Scorers Association: R51,085 – the budgeted amount was R65,000

     c.    Umpires Association: R86,861 (excluding non-panel umpires) – the
           budgeted amount was R112,000

     d.    Women’s Cricket: R55,420

     e.    Expenditures was a total of R363,300

5.   The most significant contributions to the 13.7% increase in the income for the
     period under review (from R5,158,631 to R6,964,757) are as a result of:

     a.    An increase of 6% in the CSA Amateur Allocation for 2010/11 including an
           amount of R530,000 for the implementation and sustainment of the CSA
           Presidential Amateur plan.

     b.    The NLDTF Allocation for Project 39730 was R3,8 million. The first trache
           payment of R1,8 million was done in February 2011.

                                         AMOUNT           EXPENDITURE    BALANCE
                                         ALLOCATED
            Black African Cricket        R 120,000.00     R 95,382.00    R 24,618.00
            Development Program
            Capacity Building: Clubs     R 120,000.00                    R 120,000.00
            Capacity Building: Schools   R 100,000.00     R 16,884.00    R 83,116.00
            Construction of Club House   R 2,756,000.00   R 393,337.00   R
            and Facilities, REC Ground                                   2,362,663.00
            Regional Development         R 42,000.00      R 36,000.00    R 6,000.00
            Program
            Development: Schools         R 60,000.00      R 23,000.00    R 37,000.00
            Disabled Cricket Program     R 80,000.00      R 70,758.00    R 9,242.00
            Elite Group Development      R 42,000.00      R 14,111.00    R 27,889.00
            Support to Clubs             R 220,000.00                    R 220,000.00
            Training of Coaches          R 40,000.00      R 20,971.00    R 19,029.00
            Training of Scorers          R 20,000.00                     R 20,000.00
            Training of Umpires          R 20,000.00                     R 20,000.00
            Women’s Cricket Program      R 180,000.00     R 160,745.00   R 19,255.00
            TOTAL                        R3,800,000.00    R 831,188.00   R2,968,812.00

     b.    SWD hosted the CSA Academies Tournament in September 2010 – the
           allocation for tournament levies was R231,397.

     c.    An increase from R105,080 to R177,156 as levies for travelling costs to
           National tournaments.
d.   An increase from R51,300 to R108,300 in the Chevrolet High Performance
     sponsorship funded via Cricket Eastern Cape.

f.   An allocation of R30,000 from the Western Cape Department of Cultural
     Affairs and Sport for Major Events projects (CSA Academies week)

g.   A financial grant of R134,470 from the Western Cape Department of
     Cultural Affairs and Sport for the Club Development program.
     Expenditures are listed as a separate line item (R91,356). Outstanding
     income in this regard (R64,470) for 2009/10 was only paid over in the
     2010/11 financial year. This program is making provision for a transport
     subsidy, apparel and equipment to the following seven identified clubs:

            -   Bongolethu CC

            -   Dysselsdorp CC

            -   Selbourne CC

            -   Ramblers CC

            -   Ladismith CC

            -   Sussex CC

            -   Melkhoutontein CC

h.   The strain economic climate negatively effected the recruitment of
     sponsorships and a total amount of R73,411 was obtained. Sponsorships
     were received from:

            -   Eden District Municipality and Local Government: R25,000

            -   Palisade Fencing/ Advertising: R21,401

            -   Leveraging: R25,000

i.   An amount of R57,000 was received as a grant from the Champions
     League T20 tournament that was presented in South Africa in September
     2010. As part of the application and project plan this funding is dedicated
     to the construction of net facilities at Isalathisho Primary School in Mossel
     Bay.

j.   The SWDCB, for the first time, received ICC World Cup dividends, as
     circulated via CSA to affiliates and associate members. R450,000 of the
           allocated amount of R500,000 (VAT excluded) was carried over as part of
           the income for the 2011/12 budget year.

6.   A motor vehicle (Opel Corsa) was sold for R18,840. The settlement amount was
     R10,835 with a profit of R8,005.

7.   The following matters must be noted in terms of expenditures:

     a.    An increase in the Salaries of office staff was done to comply with
           staffing according to the Presidential Amateur Plan of CSA. Salary
           adjustments were done as part of a two-year cycle to bring the SWD staff
           in line with counterparts at other provinces. The Board also appointed a
           Financial Administrator in July 2010. This appointment was done to
           comply with the CSA requirements for affiliate status.

     b.    High Performance coaching contracts (Human Resource Expenses)
           contributed to the expenses of R485,044. Since the 2007/08 season the
           SWDCB make use of provincial cricket players and appoint such players
           in the capacity of High Performance- Cricketing HUBB- and Coaches for
           Centres of Excellence. In 2009/10 the Board also invested in appointing
           local players in such capacities. The allocated funding from CSA makes
           provision for Hubbs and Centres of Excellence.

     e.    An increase from R100,351 to R170,522 in Provincial team and Coaching
           expenses was a result of extensions to Specialist Training (team
           dynamics and conditions training), an increase in team clothing (more
           players used) and the fact that SWD catered for accommodation of
           players recruited from outside the province.

     f.    Executive Expenses represented a decrease (from R59,801 to R45,605).
           The increase in travel expenses can be resulted in additional committee
           meetings and a road show before and after the season where clubs were
           visited on a regional basis.

     g.    A sponsorship of R10,000 from the Eden District Municipality were added
           as an income and resulted in expenses of R29,130 for the Annual Awards
           Function that was presented at the VG Wilderniss Hotel.

     f.    The Professional Services: Legal Fees expense of R16,189 were utilised
           for legal expenses for Disciplinary Hearings.

           The Executive Committee in May 2011 also referred a matter of Breach In
           Confidentiality to a legal consultant. The legal consultant advised the
           Executive Committee to request information in terms of the Promotion of
           Access to Information Act, 2 of 2000 to Standard Bank, the banking
            service provider of SWDCB. On 27 September 2010 the Group Risk
            Management Division of Standard Bank provided the following feedback:

            A customer consultant at the George branch of Standard Bank was
            responsible for the breach in confidentiality. He provided the confident
            information to a member of the public who told the customer consultant
            that he was requesting the information as a member on behalf of the
            SWDCB.

            The breaches occurred as follows:

            -   19 April 2010 – 22 April 2010
            -   26 April 2010 – 29 April 2010
            -   05 May 2010 – 11 May 2010

            The bank confirmed these transactions with an audit log.
            The bank took disciplinary action against the person responsible for the
            breach. The customer consultant accepted responsibility for the breach of
            confidentiality and the sanction thereto.

            The legal fees to address this matter was R5,467.65. The balance was
            spent on Disciplinary Hearings and Legal Advice matters.

     g.     The increase from R366,928 to R394,248 for the payment of VAT to the
            SA Revenue Services was due to a much higher income of revenue’s.

     h.     The expenses for the inaugural SWD Cricket Academy was R175,700.

8.   Changes in Accounting Policy. During the year, the organization changed its
     accounting policy with respect to the treatment of Assets. In order to conform
     with the benchmark treatment in of IAS16 – Property, Plant and Equipment,

     The company now provides more reliable and more relevant information for
     Property, Plant and Equipment. The aggregate effect of the changes in
     accounting policy is reflecting on to the notes of the Financial Statements.

     Since this policy in the past was to write off assets to R1, seeing that the amount
     on the face of the balance sheet was reflected in previous years as R2, the
     assets weren’t audited. With the policy change, the 2010 assets were also
     audited.

     In 2011 a policy change occurred, and assets are now at cost price less
     accumulated depreciation. The accounting policy in respect of Property, Plant
     and Equipment is on page 10 in the financial statements.

     The assets purchased during the 2011 financial year are confirmed by supporting
documentation as well as the cost prices of vehicles reflected in the financial
statements.

- The greatest audit risk of fixed assets is overstatement, and therefore my audit
procedures also included the following:

1.) an asset register with the cost prices were requested seeing that physical
purchase documents were not available.

2.) Physical inspection of the assets was conducted to determine
reasonableness of the numbers indicated on the fixed asset register. This figure
is regarded as reasonable. (Valuation Statement Audit)

3.) I took the asset register and went to the offices of SWD Cricket to ensure that
everything on the list were in the offices of SWD Cricket (Existence and
Completeness Audit Theorem)

When looking at SWD Cricket's insurance contract, the amounts disclosed for
insurance purposes are similar to those in the financial statements.

Current legislation requires companies to keep invoices for a period of 7 years.

				
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