Page 103 - KZN Film A Report

Notes to the Financial Statements (continued)
40. Prior period errors (continued)
Irregular expenditure Opening balance Adjustments made Restated opening balance
16,513,589 - 305,798 -
KWAZULU-NATAL FILM COMMISSION
(Registration number M3/15/32 (834/15)) Annual Financial Statements for the year ended 31 March 2021
Figures in Rand
2021
2020
16,819,387 -
Adjustment made to opening balance of irregular expenditure is due to an omission of irregular expenditure R286,368 on the annual financial statements, as it was subsequently noted that the irregular expenditure should be condoned by Treasury as per the Amended National Treasury Instruction Note 2 of 2019/20.
41. Going concern
We draw attention to the fact that at 31 March 2021, the entity had an accumulated surplus of R79,676,570 and that the entity’s total assets exceed its liabilities by R79,676,570.
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 management have reviewed the entity’s cash flow forecast for the year to 31 March 2021 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 KZNFC and TKZN is currently underway and is anticipated to be completed by 31 March 2022. Funding has nevertheless been approved for the KZNFC ongoing operations for the MTEF period.
42. Events after the reporting date
KZNFC has entered into an extended lease agreement on the 30th of April 2021 with Broll (Pty) Ltd afte the reporting date 31 March 2021.
The total cost of lease rentals are R5,782,141 over the lease term.
KZN FILM COMMISSION ANNUAL REPORT 2020/2021
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