140945 Limpopo Gambling Board AR DRAFT 7

LIMPOPO GAMBLING BOARD Annual Financial Statements for the year ended 31 March 2022 Notes to the Annual Financial Statements

2022

2021

30. Risk management (continued) Maximum exposure to credit risk

The entity’s exposure to credit risk with regards to loans and receivables is limited due to the nature of the entity’s operations, as explained above. Credit risk is fairly low in respect of staff loans as they are related to the entity. There has been no significant change during the financial year, or since the end of the financial year to the entity’s exposure to credit risk, the approach of measurement or the objectives, policies and processes for managing this risk. 31. Going concern The 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 liabilities, contingent obligations and commitments will occur in the ordinary course of business. Although the entity is sitting at a negative net asset, this is a result of the own revenue that the entity needs to surrender at the end of the year which is now sitting as a liability. The entity will still be receiving funding for the next financial year as the allocation and the budget has been disclosed Estimates of Provincial Revenue and Expenditure. 32. Events after the reporting date The entity was taken to CCMA by labour over salary adjustments matters relating to the 2020/21 financial year. As at the 31st of March 2022 the matter was not finalised. The matter was only finalised in April of 2022 in favour of the entity. 33. Amounts to be surrendered to Provincial Treasury Cash and cash equivalent 33 189 580 27 007 359 Less:current liabilities (17 764 273) (17 853 038) Less: levies transferred to ledet in April - (145 480) Add: under payment for previous year - 357 321 Add: trade debtors 269 034 479 842 Less: committed expenditure (1 721 893) (38 637) Less: effect of changes in prior year balances 970 132 - Add: lease smoothing 4 057 649 2 645 020 Closing balance 19 000 229 12 452 387 The committed expenditure represents the amounts budgeted for the financial year and contracted for by year end with performance only taking place in the next financial year. The funds to be surrendered to the shareholder includes penalties which the entity has collected as an agent for the Provincial Revenue Fund. The levies not received at year end are transferred to the shareholder once received in the next year. The levies outstanding as at 31 March 2021 were received and transferred in April 2021. Therefore they will not form part of funds to be surredered when the audit is concluded. Included in the funds to surrender note are amounts that relate to prior period errors. These have been taken into account in the note 29 that deals with prior period errors. This means that in the previous years the entity had over- surrendered as the figures perftaining to the errors had not been taken into acccount then. Prior period errors are disclosed in the prior period error note. The entity surrenders the funds to Provincial Treasury through the LEDET.

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