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Nature of operations |
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| The NLC is a regulator of the National Lottery as well as other lotteries, including society lotteries to raise funds. Ithuba RF (Pty) Ltd is a private company that currently operates the National Lottery under a licence from the government which commenced on 1 June 2015. The National Lottery Operator pays a percentage of the revenue from ticket sales to the NLDTF in terms of the Licence agreement. These proceeds are destined for good causes as stipulated in the Lotteries Act No 57 of 1997 (Lotteries Act) as amended and allocated to eligible and deserving applicants by Distributing Agencies appointed by the Minister of Trade and Industry. Furthermore, the NLC may, upon request by the Minister, Board or on its own initiative in consultation with the Board, conduct research on worthy good causes that may be funded without lodging an application as prescribed in terms of the Lotteries Act.
The NLC Board administers the NLDTF and the NLDTF transfers the necessary running costs to the NLC. The NLC withdraws the necessary funds required from the NLDTF, based on the overall annual budget approved by the Minister of Trade and Industry. The NLPT was founded by Ithuba Holdings RF (Pty) Ltd in terms of the licence agreement between the dti, the NLC and the Lottery Operator. The main objective of the NLPT is to hold monies in the Trust on behalf of Ithuba for prize winners and monies for advanced plays. Independent Trustees are charged with the responsibility to ensure that monies held in the Trust are safeguarded in terms of the Trust Deed. For the first time since inception of the NLC, the Auditor General of South Africa (AGSA) required the NLPT to be consolidate in the NLC financial statements. The Board took a resolution to implement the recommendations of AGSA and to consolidate the NLPT. |
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2. |
Statement of responsibility for the financial statements |
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| To the best of our knowledge and belief, we confirm the following: | |||
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All information and amounts disclosed in the annual report is consistent with the consolidated annual financial statements audited by the Auditor General. The consolidated annual financial statements are complete, accurate and free from any omissions. | ||
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The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury. | ||
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The consolidated annual financial statements have been prepared in accordance with the South African Standards of Generally Recognised Accounting Practice applicable. | ||
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The accounting authority is responsible for the preparation of the consolidated annual financial statements and for the judgements made in the financial statements. The accounting authority is responsible for establishing and implementing a system of internal control that has been designed to provide reasonable assurance to the integrity and reliability of the performance information, the human capital information and the consolidated annual financial statements. The Auditor General is engaged to express an independent opinion on the consolidated annual financial statements. In our opinion, the consolidated and separate annual financial statements fairly reflect the financial affairs of the NLC, the NLDTF and the NLPT for the financial year ended 31 March 2019. | ||
Imbewu Community Development
Imbewu Community Development organisation was established in 2017 at Ward 84 Umlazi township. The organisation was formed to provide skills to disadvantaged community members to enable them to provide for their families without seeking employment. Imbewu trains its beneficiaries in permaculture and sustainable agriculture.
Imbewu Community Development was approved a total amount of: R428 000. This was the first time the organization was funded by the NLC
The project thrives on permaculture which provides seedlings and vegetation for sustainable agriculture.
The crops are sold to local markets and individuals to generate an income, creating 10 (4 males; 6 females) jobs in the process of which 4 are permanent and 6 temporary.
Imbewu Community Development exists in the area of Umlazi and was funded
The organization trains community members in sustainable agriculture. The main focus is permaculture in which beneficiaries are train how to start and maintain their own gardens. To date, it has trained 100 beneficiaries (30 males; 70 females).
Imbewu also provides expertise in the mixing of soil and planting organic crops.
Upon visit, 3 beneficiaries were present to attest to the impact that the organization has imparted.
The following was confirmed during the visit: hired vehicle, land property, salaries paid, and garden expenses.
3. |
Operating and financial review |
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| Salient comparative information | |||
4. |
Materiality framework in terms of Treasury Regulation 28.1.5 |
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| For purposes of ‘material’ (sections 50(1), 55(2) and 66(1) of the Public Finance Management Act) and ‘significant’ (section 54 (2) of the Public Finance Management Act), the Accounting Authority developed and agreed on a framework of acceptable levels of materiality and significance. Overall materiality for the year under review for consolidated annual financial statements is 1% of the budgeted expenditure and for financial statements for the NLC and NLDTF is 1% of budgeted operational expenditure, and 1% of budgeted grants allocations respectively. | |||
5. |
Approval of financial statements |
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| The financial statements set out on pages 107 to 142 for the NLC and pages 146 to 165 for the NLDTF were approved by the Accounting Authority on 31 May 2019 and are signed on their behalf. | |||
Prof. N A Nevhutanda 31 July 2019
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