Page 115 - KZN Film Annual Report 2023/2024

KWAZULU-NATAL FILM COMMISSION
Notes to the Financial Statements (continued)
35. Irregular Expenditure and Fruitless and wasteful expenditure
Irregular Expenditure
Fruitless and wasteful expenditure Total
- 441 717 - 15 854 - 457 571
(Registration number M3/15/32 (834/15)) Annual Financial Statements for the year ended 31 March 2024
Figures in Rand
2024
2023
Information on any criminal or disciplinary steps as a result of irregular expenditure and fruitless and wasteful expenditure is included in the annual report under PFMA Compliance Report.
36. Funds to be surrendered
Cash and Cash Equivalent 4 229 862 35 881 457 Roll-Overs (4 229 862) (35 881 457) --
There are no grants or funds to be surrendered in the period under review due to the KZNFilm having all its available fund being fully committed through contracts, and purchase orders.
37. Commitments
Authorised capital expenditure
Already contracted for but not provided for
• Property, plant and equipment
Total capital commitments
Already contracted for but not provided for
137 621 -
137 621 -
The committed capital expenditure relates to property plant and equipment and will be financed with available bank facilities.
38. Going concern
We draw attention to the fact that at 31 March 2024, the entity had an accumulated surplus of R14 794 497 and that the entity total assets exceed its liabilities by R14 794 497.
The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern of the merged entity. 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 management have reviewed the entity’s cash flow forecast for the year to 31 March 2024 and, in the light of this review and the funding commitment by the Department of Economic Development Tourism & Environmental Affairs, they are satisfied that the entity has access to adequate resources to continue in operational existence for the foreseeable future.
The proposed merger of KwaZulu-Natal Film Commission and Tourism KwaZulu-Natal to form a new entity, KwaZulu-Natal Tourism and Film Authority, is currently underway. A Bill that provides for the establishment of the new entity, the dissolution of KwaZulu-Natal Film Commission and Tourism KwaZulu-Natal, and the transfer of their functions, powers and duties to the new entity was signed on the 9th of April 2024.
39. Events after the reporting date
As indicated in the Going concern note above, the entity was informed in July 2020, that the incorporation of the KZNFC and TKZN would be going ahead. This decision has not resulted in the need to adjust the Annual Financial Statements as the entity is still considered a going concern.
113 ANNUAL REPORT 2023/2024