Page 65 - KZN Film Annual Report 2023/2024

KWAZULU-NATAL FILM COMMISSION
(Registration number M3/15/32 (834/15)) Annual Financial Statements for the year ended 31 March 2024
Report of the auditor-general to the KwaZulu-Natal Provincial Legislature on the KwaZulu-Natal Film Commission
Report on the audit of the financial statements
Opinion
1. I have audited the financial statements of the KwaZulu-Natal Film Commission set out on pages 69 to 120, which comprise the statement of financial position as at 31 March 2024, statement of financial performance, statement of changes in net assets and cash flow statement for the year then ended, as well as notes to the financial statements, including a summary of significant accounting policies.
2. In my opinion, the financial statements present fairly, in all material respects, the financial position of the KwaZulu-Natal Film Commission as at 31 March 2024, and its financial performance and cash flows for the year then ended in accordance with the Standards of Generally Recognised Accounting Practice (GRAP) and the requirements of the Public Finance Management Act 1 of 1999 (PFMA).
Basis for opinion
3. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the responsibilities of the auditor-general for the audit of the financial statements section of my report.
4. I am independent of the public entity in accordance with the International Ethics Standards Board for Accountants’ International code of ethics for professional accountants (including International Independence Standards) (IESBA code) as well as other ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA code.
5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Emphasis of matters
6. I draw attention to the matters below. My opinion is not modified with respect to these matters.
Going concern and disestablishment of the entity
7. I draw attention to note 39 to the financial statements, which indicates that the Provincial Executive Council has resolved on rationalising public entities that fall under the Department of Economic Development, Tourism and Environmental Affairs. This process resulted in the disestablishment of the KwaZulu-Natal Film Commission and the subsequent establishment of the newly formed KwaZulu-Natal Tourism and Film Authority in terms of Government Gazette 2691 issued on the 24th of May 2024.
Note 39 further indicates that all the assets, liabilities, rights and obligations vested in, and all administrative, financial and other records kept by the erstwhile KwaZulu-Natal Film Commission will now vest in the new entity established in terms of the KwaZulu-Natal Tourism and Film Authority Act 2 of 2024 and allow the newly formed entity to continue as going concern. The financial statements are accordingly prepared on the going concern basis.
Contingencies
8. As disclosed in note 32 to the financial statements, the entity has pending litigation matters in progress. The ultimate outcome of these matters could not be determined and no provision for any asset or liability that may result was made in the financial statements.
Other matter
9. I draw attention to the matter below. My opinion is not modified with respect to this matter. Unaudited supplementary schedules
10. The public entity disclosed supplementary information in the financial statements on whether resources were obtained and used according to the legally adopted budget. The supplementary statement of comparison of budget and actual amounts set out on pages 121 to 122 do not form part of the financial statements and is presented as additional information. Accordingly, I do not express an opinion on it.
63 ANNUAL REPORT 2023/2024