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

34. Fruitless and wasteful expenditure Opening balance as previously reported

6 839 7 643

6 839

Add: Fruitless and wasteful expenditure identified - current

-

Closing balance

14 482

6 839

Fruitless expenditure is presented inclusive of VAT. This relates to no show costs of R 6 839 that were charged for accommodation in the 2018/19 financial year. The matter was investigated and a disciplinary process initiated in respect of the affected official who was found guilty regarding fruitless and wasteful expenditure. The matter wa dealt with in a disciplinary hearing and a ruling was taken against the employee however the employee has appealed the ruling and the matter was not concluded by end of the financial year. The fruitless expenditure incurred in the current year relates to a penalty that was raised by the Department of Employment and Labour (Compensation Commission) against the entity for not paying the final assessment of 2012. The payment was made in the current financial year after the invoice was received from the Department of Employment and Labour. The shareholder will be assisting with an investigation into the matter. 35. Irregular expenditure Opening balance as previously reported 3 600 3 600 Opening balance as restated 3 600 3 600 Add: Irregular Expenditure - current - - Less: Amount written off - current (3 600) - Closing balance - 3 600 Irregular expenditure is presented inclusive of VAT. The irregular expenditure for the current year relates to accommodation that was sought by the entity without following the necessary procurement processes. The accommodation was treated as an emergency which is not in line with the Treasury SCM Regulations. Investigation in respect of the matter is completed and the report is to be processed by Financial Misconduct Committee for a recommendation to the Chief Executive Officer and Accounting Authority as at the date the annual financial statements were submitted. The matter was subsequently condoned by the Accounting Authority and approval was granted by Provincial Treasury. 36. Reconciliation between budget and cash flow statement Reconciliation of budget surplus/deficit with the net cash generated from operating, investing and financing activities: Operating activities Actual amount as presented in the budget statement 151 113 963 92 013 550 Basis differences (144 922 043) (89 744 269) Net cash flows from operating activities 6 191 920 2 269 281

Investing activities Actual amount as presented in the budget statement

(9 700)

(558 382)

Net cash generated from operating, investing and financing activities

6 182 220 1 710 899

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