Page 52 - KZN Film A Report

Report of the Auditor-General to KwaZulu-Natal Provincial Legislature on 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 59 to 104, which comprise the statement of financial position as at 31 March 2021, the statement of financial performance, statement of changes in net assets, cash flow statement and statement of comparison of budget and actual amounts 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 (KZNFC) as at 31 March 2021, and its financial performance and cash flows for the year then ended in accordance with the South African Standards of Generally Recognised Accounting Practice and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No.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 auditor-general’s responsibilities for the audit of the financial statements section of my report.
4. I am independent of the 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 matter
6. I draw attention to the matters below. My opinion is not modified in respect of these matters.
Financial sustainability – Rationalisation of public entities
7. As disclosed in note 41 to the financial statements,
the Provincial Executive Council made a resolution to amalgamate/rationalise the state owned entities under the control of Department of Economic Development, Tourism and Evironmental Affairs (EDTEA). The proposed merger between KZNFC and Tourism KwaZulu-Natal Authority(TKZN) is currently underway and is anticipated to be completed by 31 March 2022.
Irregular expenditure
8. As disclosed in note 35 to the financial statements, the entity incurred irregular expenditure of R1,16 million (2020:R1,76 million) due to supply chain management transgressions.
Responsibilities of the accounting authority for the financial statements
9. The accounting authority is responsible for the
preparation and fair presentation of the financial statements in accordance with the Standards of Generally Recognised Accounting Practice (GRAP) and the requirements of the PFMA, and for such internal control as the accounting authority determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
10. In preparing the financial statements, the accounting authority is responsible for assessing the entity’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the appropriate governance structure either intends to liquidate the entity or to cease operations, or has no realistic alternative but to do so.
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KZN FILM COMMISSION ANNUAL REPORT 2020/2021