127363 Gauteng Sports 2020.indb

GAUTENG DEPARTMENT OF SPORT, ARTS, CULTUREAND RECREATION: VOTE 12 ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2020

Report of the Auditor-General to the Gauteng Provincial Legislature on Vote No.12: Gauteng Department of Sport, Arts, Culture and Recreation Report on the audit of the ¿ nancial statements Opinion 1. I have audited the ¿ nancial statements of the Gauteng Department of Sport, Arts, Culture and Recreation set out on pages 237 to 317, which comprise the appropriation statement, statement of ¿ nancial position as at 31 March 2020, statement of ¿ nancial performance, statement of changes in net assets and cash À ow statement for the year then ended, as well as the notes to the ¿ nancial statements, including a summary of signi ¿ cant accounting policies. 2. In my opinion, the ¿ nancial statements present fairly, in all material respects, the ¿ nancial position of the Gauteng Department of Sport, Arts, Culture and Recreation as at 31 March 2020, and its ¿ nancial performance and cash À ows for the year then ended in accordance with the Modi ¿ ed Cash Standards (MCS) prescribed by the National Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA) and the Division of Revenue Act of South Africa, 2019 (Act No. 16 of 2019) (Dora). 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 ¿ nancial statements section of this auditor’s report. 4. I am independent of the department in accordance with sections 290 and 291 of the Code of ethics for professional accountants and parts 1 and 3 of the International Code of Ethics for Professional Accountants (including International Independence Standards) of

the International Ethics Standards Board for Accountants (IESBA codes) as well as the ethical requirements that are relevant to my audit in South Africa. I have ful ¿ lled my other ethical responsibilities in accordance with these requirements and the IESBA codes. 5. I believe that the audit evidence I have obtained is suf ¿ cient and appropriate to provide a basis for my opinion. Emphasis of matters 6. I draw attention to the matters below. My opinion is not modi ¿ ed in respect of these matters. Signi ¿ cant subsequent event 7. I draw attention to note 27 to the ¿ nancial statements, which deals with subsequent events and, speci ¿ cally, the effects of the future implications of covid-19 on the department’s operations. Management has described how they plan to deal with these events and circumstances. Material uncertainty related to contingent liabilities 8. With reference to note 18 to the ¿ nancial statements, the department is the defendant in various lawsuits. The ultimate outcome of these matters could not be determined and no provision for any liability that may result was made in the ¿ nancial statements. Underspending on the annual appropriation 9. As disclosed in the appropriation statement, the department materially underspent the budget by R91 585 000 on the following programmes: • programme 1 – administration, underspending of R1 939 000 • programme 2 – cultural affairs, underspending of R22 193 000 • programme 3 – library information and archival services, underspending of R44 734 000 • programme 4 – sport and recreation, underspending of R22 719 000. Other matter 10. I draw attention to the matter below. My opinion is not modi ¿ ed in respect of this matter.

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2019/20 ANNUAL FINANCIAL STATEMENTS