Limpopo Gambling Board Annual Report

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

2022

2021

25. Financial instruments disclosure (continued) Financial instruments in Statement of financial performance March 2022

At amortised cost

Total

Interest income (calculated using effective interest method) for financial instruments at amortised cost

553 919

553 919

March 2021

At amortised cost

Total

Interest income (calculated using effective interest method) for financial instruments at amortised cost

587 692

587 692

26. Commitments Authorised operational expenditure Already contracted for but not provided for  Expenditure 1

4 429 858 4 016 372

Total operational commitments Already contracted for but not provided for

4 429 858 4 016 372

The commitments relate to contracts in respect of internal audit, security, hygiene cleaning company. The commitments are funded from existing funds. Operating leases - as lessee (expense) Minimum lease payments due - within one year 15 538 916 15 538 916 - in second to fifth year inclusive - 15 538 916 15 538 916 31 077 832 The entity rents offices in Polokwane at 8 Hans van Rensburg Street. Rental is payable monthly in advance and it escalates at the rate of 10% per annum. The tenant has the option to make an offer to purchase at any time in the current lease agreement. The tenant is also precluded from using the building for other purposes other than that agreed upon in the lease agreement. The landlord can terminate the contract upon expiry of the termination date. There is no contingent rent in the Statement of Financial Performance. The lease expires on the 28th of February 2023. The entity rents digital printers for a period of three years. Rental is payable monthly in advance and is fixed over the entire contract period. The tenant has the option to renew the rental agreements at reduced rental. Contingent rent is payable based on the number of copies made by the tenant.

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