Page 58 - CON Boardpack July 20200708 Final_Neat

executive board are not aware of any new material changes that may
adversely impact the organisation. The executive board are also not
aware of any material non-compliance with statutory or regulatory
requirements or of any pending changes to legislation which may affect
the organisation.”

Point 18. “Events after the reporting period
The Covid-19 pandemic which has engulfed the world during March and
April 2020 has had a negative impact on the global business environment.
The executive board have in response to the national lockdown imposed
by the government implemented an extensive contingency plan whereby
the majority of staff members could continue to perform their duties from
home thereby ensuring the organisations’ ability to generate revenue
remains intact. The organisation has no long-term debt and has adequate
working capital to sustain its operations for at least four months on the
assumption that the accounts receivable billed to date will be honoured
by customers. The executive board are of the opinion that the majority of
the organisations’ customer base will have the ability to honour their
commitments.

Consequently, the executive board is confident that the Coid-19 pandemic
will not have an adverse effect on the financial results as reflected in these
financial statements.”

- P6 “Basis of qualified opinion’ Par 1 ‘The completeness and cut-off of the
statutory levies could not be reasonably verified to the extent that some
entities eligible for registration with the levy administrator or have registered
but are not submitting the levy returns or paying the levies over to the levy
administrator. The levy collection is done on the basis of self-assessment
and therefore levy income cannot be completely accounted for if the levy
returns are not submitted by all entities. Consequently, we were unable to
satisfy ourselves as to the completeness of levy income and the resultant
impact on trade receivables.’

Statutory Levy
It was noted that SAPPO has no reference to check the slaughter numbers
reported by abattoirs reported to the RMLA. Although SAMIC performs the
audit function, it is remains difficult to determine whether the abattoir figures
passed are the true figures.

A short discussion on the risk that incorrect figures could have on the
organisation took place. Jacques Marais confirmed that auditors work on
historical data and therefore it is hard to pick up incorrect figures. He
suggested that SAPPO mitigate the risk as the cost effect can be very high.

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