Page 59 - CON Boardpack July 20200708 Final_Neat

Johann Kotzé was of the opinion that if SAPPO had the correct numbers of pigs
leaving a farm to go to the abattoir, a spot audit should be able to tell the
difference in the slaughter numbers reported by abattoirs.

Decision:
Johann Kotzé must address the mitigating risk of future non-payment of the
statutory levy by abattoirs.

The committee took note that the period vehicles were written off changed
from 5 years to 3 years due to the higher than average use of the vehicles by
SAPPO.

P15 - Trade and other receivables - The increase was substantial due to the
following:
- An amount of R5.9 million was still due on the levy side.
- The RMLA figures were incorporated with SAPPO’s figures.
- R1.6 million expenses were paid in advance.
- R1.9 million was received from government due to money paid by SAPPO
during an ASF outbreak.

The total of trade and other creditors is R2.9 million, the majority of which is VAT.
(P15 note 6)
R1.6 million referred to the RMLA income.

The debtors account was expenses that was processed on the bank account.
An amount of R1.84 million went through during January 2020. When the levies
are paid to SAPPO the fee for the RMLA services is already deducted.

Trade receivables was R420 000 that was paid back for testing that was done.
The premium on the insurance was paid after year-end. Previously it was paid
before year end.

P9 – The Payment to the NAHF will disappear in the future as well as the KZN
donation made to SAPPO.

The transfer between reserves increased from R556 717 to R712 598. The prior
year (2018) calculated for 10 months and the said year (2019) for 12 months.

The members expressed their satisfaction with the statements as presented.

Income was higher than the previous year and a special request was done to
spend more money on Consumer Education.

The expenses were different in each year. There is leniency in the budget if
expenses do have to change. Expenditure vary from year to year. The 10% for
administration and the 20% for developing farmers may not change.

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