LIMPOPO GAMBLING BOARD A/REPORT 2022/23

LIMPOPO GAMBLING BOARD Financial Statements for the year ended 31 March 2023 29. Risk management (continued) Financial Instrument

March 2023

March 2022

Cash and cash equivalents change 1%)

(Upward 250 555

331 896 331 896

Cash and cash equivalents (Downwardchange 1%)

250 555

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. 30. 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. 31. Events after the reporting date The entity does not have any events after reporting date warrant any adjustments to the financial statements. 32. Amounts to be surrendered to Provincial Treasury 2023 2022 Cash and cash equivalent 25 055 451 33 189 580 Less: Current liabilities (11 593 664) (17 814 423) Add: Trade debtors 842 615 269 034 Less: Committed expenditure (1 740 993) (1 721 893) Less: Effects of prior year changes (50 150) 970 132 Add: Lease smoothing 5 014 421 4 057 649 Closing balance 17 527 680 18 950 079 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.

LIMPOPO GAMBLING BOARD

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