Ombud Council AR 2026

PART F: FINANCIAL INFORMATION

25. Contingent Liability In terms of Section 53(3) of the PFMA, a public entity may not accumulate surplus funds without approval from the National Treasury. Subject to the approval by the Board, the Ombud Council will request approval to retain the estimated cash surplus of R4.24 million which is calculated as the accumulated available cash surplus of R22.84 million as at 31 March 2026, less the previously approved contingency reserve ofR18.60 million, for the purpose of the Baseline study project that did not take place in the prior year and the remainder as a top up to the approved contingency reserve. 26. Irregular, fruitless and wasteful and unauthorised expenditure The Ombud Council did not incur any irregular, fruitless and wasteful and unauthorised expenditure in the current financial year. 27. Going concern The annual 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. The ability of the entity to continue as a going concern is dependent on a number of factors. The most significant of these is that the entity continues to receive Levy funding for the ongoing operations for the entity. The Ombud Council’s annual approved budget for the 2026/27 financial year indicates that it continues business, with its full complement of employees and fulfilment of its mandate. The entity is solvent, and the liquidity ratios are favourable. There are no contingent liabilities that may jeopardise future operations and the cash flows are such that the Ombud Council can maintain its operations for at least one year of the reporting date of the financial statements. 28. New standards and interpretations 28.1 Standards and interpretations effective and adopted in the current year In the current year, the entity has adopted the following standards and interpretations that are effective for the current financial year and that are relevant to its operations:

Effective date: Years beginning on or after

Standard/ Interpretation

• GRAP 104 (as revised): Financial Instruments

01 April 2025

Ombud Council 2025/26 Annual Report

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