SOUTH AFRICAN HERITAGE RESOURCES AGENCY ••ANNUAL … · HRM Heritage Resources Management ICT Information Communication and Technology IMP Integrated Management Plan LoA Letter

S O U T H A F R I C A N H E R I TAG E R E S O U R C E S AG E N C Y

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• • A N N U A L R E P O R T • •

S O U T H A F R I C A N H E R I T A G E R E S O U R C E S A G E N C Y

• • S A H R A • •A N A G E N C Y O F T H E D E P A R T M E N T O F A R T S A N D C U L T U R E

W H O I S S A H R A ?

We present this information about SAHRA in order to create an awareness among the people of our country of their right to conserve what they consider to be valuable heritage resources, the mechanisms for doing this, and to recognise the exciting new possibilities that the Act creates for them.

W H A T W E D O ?

SAHRA is mandated to coordinate the identification and management of the national estate. The aims are to introduce an integrated system for the identification, assessment and management of the heritage resources and to enable provincial and local authorities to adopt powers to protect and manage them.

T h e U n i o n B u i l d i n g s

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P A R T A : S A H R A G E N E R A L I N F O R M A T I O N

1. Public Entity’s general information .......................................................................................................................................032. List of abbreviations / acronyms and definitions ..................................................................................................................043. Foreword by the Chairperson of the Council........................................................................................................................064. Acting Chief Executive Officer’s overview ............................................................................................................................085. Statement of Responsibility and Confirmation of Accuracy of the Annual Report ..............................................................106. Strategic overview ................................................................................................................................................................117. Legislative and other mandates ...........................................................................................................................................128. Organisational structure .......................................................................................................................................................13

P A R T B : P E R F O R M A N C E I N F O R M A T I O N

9. Situational analysis ...............................................................................................................................................................1710. Strategic context ..................................................................................................................................................................2511. Strategic outcomes-orientated goals ...................................................................................................................................2712. Performance information by programme/activity/objective .................................................................................................3013. Linking performance with budgets .......................................................................................................................................4014. SAHRA Business Unit Performance .....................................................................................................................................41

P A R T C : G O V E R N A N C E

1. Introduction ..........................................................................................................................................................................592. Portfolio committees ............................................................................................................................................................593. The Accounting authority / The Council ...............................................................................................................................594. Risk management .................................................................................................................................................................625. Internal Audit Unit .................................................................................................................................................................636. Audit and risk committee ......................................................................................................................................................637. Compliance with laws and regulations .................................................................................................................................648. Fraud and corruption ............................................................................................................................................................649. Minimising conflict of interest ...............................................................................................................................................6410. Code of conduct ...................................................................................................................................................................6511. Health, safety and environmental issues ..............................................................................................................................6512. Company Secretary ..............................................................................................................................................................6513. Social responsibility ..............................................................................................................................................................6514. Audit Committee report ........................................................................................................................................................65

P A R T D : H U M A N R E S O U R C E S M A N A G E M E N T

1. Introduction ..........................................................................................................................................................................692. Human Resources oversight statistics .................................................................................................................................70

P A R T E : F I N A N C I A L I N F O R M A T I O N R E P O R T

General Information ...........................................................................................................................................................................75Report of the Auditor-General ...........................................................................................................................................................76Accounting Authority’s Responsibilities and Approval ......................................................................................................................80Accounting Authority’s Report ..........................................................................................................................................................81Statement of Financial Position .........................................................................................................................................................82Statement of Financial Performance .................................................................................................................................................83Statement of Changes in Net Assets ................................................................................................................................................84Cash Flow Statement ........................................................................................................................................................................85Statement of Comparison of Budget and Actual Amounts ...............................................................................................................86Accounting Policies ...........................................................................................................................................................................88Notes to the Financial Statements ....................................................................................................................................................107

G E N E R A L I N F O R M A T I O N

P A R T

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1 . G E N E R A L I N F O R M AT I O N

REGISTERED NAME: South African Heritage Resources Agency (SAHRA)

REGISTRATION NUMBER: N/A

PHYSICAL ADDRESS: 111 Harrington Street

Cape Town

8001

POSTAL ADDRESS: P.O. Box 4637

Cape Town

8000

TELEPHONE NUMBER: +27 (0) 21 462 4502

FAX NUMBER: +27 (0) 21 462 4509

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS: www.sahra.org.za

EXTERNAL AUDITORS: Auditor-General

BANKERS: Absa and Nedbank

COMPANY SECRETARY Mr Simphiwe Mome

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2 . L I S T O F A B B R E V I AT I O N S /

AC R O N Y M S A N D D E F I N I T I O N S

ACH Arts, Culture and Heritage

AGSA Auditor-General of South Africa

ARC Auditing Risk Committee

BDC Business Development Committee

CATHSSETA Culture, Arts, Tourism, Hospitality and Sport Sector Education and Training Authority

CEO Chief Executive Officer

CGS Council for Geoscience

CPUT Cape Peninsula University of Technology

COSO Committee of Sponsoring Organisation

CSC Corporate Services Committee

DAC Department of Arts and Culture

DEA Department of Environmental Affairs

EE&T Employment Equity and Training

ERM Enterprise Risk Management

GDRC Grading and Declarations Resolution Council

GRAPGenerally Recognised Accounting Practice

HA Heritage Agreement

HESSOP Heritage Education Schools Outreach Programme

HIA Heritage Impact Assessment

HRASA Heritage Railways Association of South Africa

HRM Heritage Resources Management

ICTInformation Communication and Technology

IMP Integrated Management Plan

LoA Letter of Agreement

MOU Memorandum of Understanding

MTEF Medium-Term Expenditure Framework

MTSF Medium-Term Strategic Framework

NALEH National Forum for the Law Enforcement on Heritage related Crime

NEMANational Environmental Management Act (Act No. 107 of 1998)

NDP National Development Plan

NHC National Heritage Council

NHRANational Heritage Resources Act (Act No. 25 of 1999)

NRF National Research Fund

OD Organisational Development

PFMAPublic Finance Management Act (Act No. 1 of 1999 as amended by Act No. 29 of 1999)

PHRAProvincial Heritage Resources Authority

PPP Public-Private Partnership

PSRMF Public Sector Risk Management Framework

SAAO South African Astronomical Observatory

SAHRASouth African Heritage Resources Agency

SAPS South African Police Service

SAHRISSouth African Heritage Resources Information System

SANP South African National Parks

SANSA South African National Space Agency

SAMA South African Museums Association

SCM Supply Chain Management

SWOTStrengths, Weaknesses, Opportunities and Threats

UNESCO United Nations Educational Scientific and Cultural Organisation

UN United Nations

UP University of Pretoria


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Vo o r t r e k k e r M o n u m e n t

B u i l t t o c o m m e m o r a t e t h e G r e a t Tr e k , t h e o f t e n t r e a c h e r o u s j o u r n e y a c r o s s

t h e c o u n t r y u n d e r t a k e n b y p i o n e e r i n g B o e r f a m i l i e s w h o f l e d B r i t i s h r u l e

i n t h e C a p e c o l o n y i n t h e m i d - 1 9 t h c e n t u r y . T h e V o o r t r e k k e r m o n u m e n t i s o n e o f t h e m o s t v i s i t e d h e r i t a g e s i t e s

i n Ts h w a n e a n d o n e o f t h e p o p u l a r t o u r i s t a t t r a c t i o n s i n S o u t h A f r i c a .

T h e 4 0 m e t r e t a l l g r a n i t e m o n u m e n t i s l o c a t e d o n t o p o f a h i l l o v e r l o o k i n g

P r e t o r i a i n t h e m i d d l e o f t h e 2 4 0 h e c t a r e V o o r t r e k k e r M o n u m e n t N a t u r e

R e s e r v e .

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3 . F O R E W O R D B Y T H E

C H A I R P E R S O N O F T H E

C O U N C I L

Prof Susan Bouillon(Chairperson)

I

t gives me great pleasure to introduce the final Annual Report of this Council’s term for the period of 2018/19.

I am writing the final annual report of the current Council’s term, with mixed feelings. When this Council was appointed in 2016, it was both excited and honoured to be entrusted with an institution with such a very powerful mandate and to be able to apply its vision to this small yet remarkable organization. However, within just a few months, the Council received correspondence from the Minister instructing it to initiate a forensic investigation into allegations of irregular expenditure and non-compliance that had been raised by the Auditor-General in his 2016/17 audit report. In SAHRA’s 2017/18 Annual Report, the Council outlined its bold decision to place its Chief Executive Officer (CEO) on precautionary suspension to allow this forensic investigation to be completed. In October 2017, the Council appointed Mr Thomas Kgokolo as its Interim CEO to ensure that there was stability in the organisation and little interruption in service delivery.

The forensic investigation was concluded at the end of October 2018. This coincided with the resignation of the Interim CEO as he embarked on new endeavours, and Council appointed its Company Secretary and Head of Legal, Adv. Lungisa Malgas as Acting CEO of SAHRA. Having finalised this process, the Council turned to the implementation of the recommendations of the forensic report. This led to the dismissal of the CEO, Ms Veliswa Baduza, and further disciplinary action being taken against other officials.

Council did not lose focus in holding management accountable for good corporate governance and service delivery. In the 2017/18 financial year we proudly reported that SAHRA had achieved a clean audit and achieved 90% of its annual performance targets for the first time in its existence. It is my honour to proudly announce that SAHRA has maintained both its clean audit in the 2018/19 financial year and its 90% in annual performance.

This Council has assured staff, executives and our clients and stakeholders that we are committed

to the success of the Entity as we strengthen governance in the organization. This created an opportunity for the Council to implement a system for paying performance bonuses for the first time in the existence of SAHRA in recognition of the commitment and dedication of the organisation’s staff. In addition, SAHRA has been awarding its staff bursaries and those who have been developing themselves in their line of work are recognised and incentivised accordingly. This was our way of responding to high staff turnover and low retention of staff.


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Financially, the entity continues to struggle as our budget allocation was cut by the Department of Arts & Culture (DAC). However, SAHRA continues to seek ways of generating its own revenue through its properties. This is a long-term strategy that will be handed over to the new Council.

One of the initiatives taken by this Council was to amend its legislation, the National Heritage Resources Act, No.25 of 1999. There were some changes submitted to the South African Law Report Commission in 2016. However, a bigger conversation needs to happen, and management was challenged by Council to identify certain sections of the legislation that should be prioritized.

The Council would like to express its gratitude to the Minister of Arts and Culture, Mr Nathi Mthethwa, for his confidence and support; to the DAC for its continued guidance and support; and to the Portfolio Committee for the guidance that continues to shape the performance of this Entity.

I must also thank colleagues in the SAHRA Council for their constructive role and participation in deliberations, even though some were difficult. The past three (3) years were not easy for this Council. I am grateful and proud, however, to be able to report on the significant changes that were made during our tenure and commend the Council members’ commitment to the SAHRA.

Last, but not least, the Council’s deepest and most sincere thanks and appreciation go to the executive management and staff of SAHRA for their sterling work to turn around and stabilize this organization during these most challenging times – an achievement which is reflected in the Auditor-General’s Report, the second clean audit and annual performance that continues to soar.

________________________________Prof Susan BouillonCouncil Chairperson

S S M e n d i M e m o r i a l

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4 . A C T I N G C H I E F E X E C U T I V E

O F F I C E R ’ S O V E R V I E W

Adv. Lungisa Malgas(Acting Chief Executive Officer)

I

t is my pleasure to present the 2018/19 Annual Report of the South African Heritage Resource Agency.

I would like to express my sincere gratitude to the Council for giving me this opportunity to lead this amazing institution. I did not take this role for granted, and, as an internal appointee who has worked with Councils and CEOs of this institution, I was grateful for the opportunity. This responsibility created a space for us to change the narrative and perceptions about the institution which, in the past, has seen itself embroiled in controversies that almost tarnished its mandate.

Over the years, we have seen other institutions taking over elements of SAHRA’s functions which created a perception that our mandate overlaps with these institutions. Because of this we have strived to change that narrative by focusing on service delivery and the execution of our mandate. The results of these efforts are showing, and this was articulated in the Auditor-General (AG) reports of both the 2017/18 and 2018/19 financial years. SAHRA’s staff members have demonstrated

that they are more than capable of driving this change as well as responding to the needs of our country through heritage.

We started the financial year with several challenges, including the implementation of the remedial actions emanating from the forensic report and we continue to address the challenges that are a legacy of those who have since left SAHRA. However, our focus has remained steadfastly on the execution of our mandate: the identification, conservation, promotion and preservation of our heritage.

As such, SAHRA has worked hard in this financial year. Highlights of its achievements include the declaration of 51 geosites within four (4) localities of Barberton Makhonjwa Mountain. SAHRA also drafted five (5) policies, regulations, norms and standards, and published a paper on the Heritage Portal about “Women in Maritime Heritage”. Furthermore, we graded the Ohlange Institute, and added the grave of Chief Tyali to the University of Fort Hare declaration.

In celebration of Nelson Mandela’s Centenary, SAHRA was part of

the Joint Project Committee to commission the Nelson Mandela statue at the United Nations Headquarters in New York, which was unveiled by the President, Cyril Ramaphosa on 24 September 2018. The institution also successfully completed a signage project and unveiled a commemorative plaque at Nelson Mandela House at Drakenstein Prison in Paarl on 14 December 2018. Further achievements in the 2018/19 financial year are outlined in this report


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The entity has done extremely well in realising the potential and talent of its young staff. As such, the partnership between SAHRA and CATHSSETA is a useful tool in responding to the needs of our country. In this financial year, we received 13 interns, whose passion and energy make it very difficult for us to part ways with them when their internship term comes to an end. In the recent years, we have taken great strides in creating opportunities to absorb some permanently, while others are given 12 months contracts depending on our savings in the compensation budget. We hope that in the future there will be more opportunities to absorb them in our organisation or assist them to find placements elsewhere. All of this is attributable

to SAHRA’s mentors who train these young people to be employable.

SAHRA continues to explore avenues that would assist in the generation of income through its properties. Strategically, we have commissioned a feasibility study that will be finalised in the 2019/20 period. This will assist us in turning our misfortunes in some areas of our properties into real opportunities for income generation. We are not oblivious to the economic challenges of our country and the competing priorities of our government and hence we have identified the need for SAHRA to maximise its strategy on income generation. This can never be achieved without the support of Council and the DAC.

I would like to thank the Council and all its Committees for their unwavering support in the last three years which have left us with the legacy of good corporate governance. The Council was more focused on making significant changes to restore the SAHRA brand. The amazing SAHRA team has embraced this change and shown resilience through difficult and trying times in this organisation. Their tenacity humbles me and epitomises the expression together we stand, divided we fall.

________________________________Adv. Lungisa MalgasActing Chief Executive Officer

P e r f o r m a n c e a c h i e v e d P e r f o r m a n c e n o t a c h i e v e d

2015/16 2016/17 2017/18

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6 8

3 2

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1 02018/19

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C o m p a r a t i v e a c h i e v e m e n t a n a l y s i s

CLEAN AUDIT 2017/18 2018/19

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5 . S TAT E M E N T O F

R E S P O N S I B I L I T Y A N D

C O N F I R M AT I O N O F AC C U R AC Y

O F T H E A N N UA L R E P O R T

To the best of my knowledge and belief, I confirm the following:

All information and amounts disclosed in the annual report is consistent with the annual financial statements audited by the Auditor General.

The annual report is complete, accurate and is free from any omissions.

The annual report as been prepared in accordance with the guidelines on the annual report as issued by National Treasury.

The accounting authority is responsible for the preparation of the annual financial statements and for the judgements made in this information.

The accounting authority is responsible for establishing and implementing a system of internal control has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements.

The external auditors are engaged to express an independent opinion on the annual financial statements.

In our opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the public entity for the financial year ended 31 March 2019.

Yours faithfully

________________________________Adv. Lungisa MalgasActing Chief Executive Officer


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SAHRA is a statutory organisation established by the National Heritage Resources Act, No. 25 of 1999 (NHRA), as the national administrative body responsible for the protection of South Africa’s cultural heritage. It is an implementing agency of the Department of Arts and Culture (DAC).

It is a legislative requirement that all government institutions and entities periodically review their strategic plans for them to remain relevant and to be responsive to their legislative mandates.

SAHRA conducted its last strategic review in 2014 with an emphasis on reshaping its future to improve the Entity’s performance. A 2015 to 2020 strategic plan was approved by Council on 31 March 2014 and SAHRA is currently working under the terms of that plan. SAHRA’s 2018/19 Annual Performance Plan is the second annual performance plan based on the current strategic plan.

V I S I O N

A nation united through heritage.

M I S S I O N

Our mission in fulfilling our mandate is to promote social cohesion in our country by:

• Identifying, conserving, and managing heritage resources in South Africa so that they can contribute to socio-economic development and nation-building;

• Developing norms, standards and charters for the management of heritage resources in South Africa; and

• Contributing to skills development and knowledge production and transformation in heritage resources management in South Africa and beyond.

VA L U E S

Underpinned by the Batho Pele principles and belief set (“We belong, we care, and we serve”), SAHRA subscribes, in all that it does, to the following institutional values:

• Accountability• Teamwork and co-operation• Respect• Transparency• Service excellence• Integrity and ethics• Honesty• Accessibility• Professionalism• Communication

6 . S T R AT E G I C O V E R V I E W

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7 . L E G I S L AT I V E A N D O T H E R

M A N DAT E S

SAHRA is a Schedule 3A public entity as defined in the Public Finance Management Act, No.1 of 1999 (PFMA). It identifies, conserves, protects and promotes our national heritage resources for the greater good of our society and humanity. In doing this, SAHRA contributes to Outcome 14 of the National Development Plan (NDP), social cohesion and nation-building.

As outlined in the NHRA preamble, it is important to preserve and protect our heritage because this:• encourages communities to nurture and conserve

their legacy;• defines cultural identity;• lies at the heart of our spiritual well-being;• has the power to build our nation and the potential to

affirm our diverse cultures;• shapes our national character;• celebrates our achievements; and• contributes to redressing past inequities.

Other legislation that relates to heritage resources management, includes but is not limited to:• National Heritage Council Act (Act No. 11 of 1999)• Cultural Institutions Act (Act No. 119 of 1998)• South African Geographical Names Council Act (Act

No. 118 of 1998)• National Library of South Africa Act (Act No. 92 of

1998)• South African Library for the Blind Act (Act No. 91 of

1998)

• National Film and Video Foundation Act (Act No. 73 of 1997)

• National Arts Council Act (Act No. 56 of 1997)• Legal Deposit Act (Act No. 54 of 1997)• National Archives and Record Service of South Africa

Act (Act No. 43 of 1996)• Pan South African Language Board Act (Act No. 59

of 1995)• Culture Promotion Act (Act No. 35 of 1983)• Heraldry Act (Act No. 18 of 1962)• World Heritage Convention Act (No. 49 of 1999)• National Environmental Management Act (Act No. 107

of 1998)

Other relevant legislations and guiding documents include:• Public Finance Management Act (Act No. 1 of 1999)• Division of Revenue Acts 1 of 2018• Basic Conditions of Employment Act (Act No. 75 of

1997 as amended)• Employment Equity Act (Act No. 55 of 1998)• Labour Relations Act (Act No. 66 of 1995)• Skills Development Act (Act No. 37 of 2008)• Government Immovable Asset Management Act (Act

No. 19 of 2007)• The Constitution of the Republic of South Africa, 1996• Revised White Paper on Arts, Culture, and Heritage:

Version 2 (4 June 2013)

B l a c k i e S t e a m L o c o m o t i v e


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T H E S A H R A C O U N C I L

ADV. LUNGISA MALGAS

Acting Chief Executive Officer

MR SIMPHIWE MOME

Acting Executive Officer: Legal &

Acting Company Secretary

PROF SUSAN BOUILLON

Chairperson

DR PHILIP MTHOBELI

GUMA

PROF NCEDILE SAULE PROF HENRY CHARLES

BREDEKAMP

MR MOHLOMI EZEKIEL

MASOOA

DR GREGORY HOUSTON MR MOSES THEMBA

MAKHWEYANE

MS THEMBEKA SEMANE

DR ANTONIA MALAN MR KHATHUTSHELO

DONALD LITHOLE

DR JONATHAN

SHARFMAN

MS REYHANA GANI

S A H R A E X E C U T I V E S

MR KGOMOTSO

SEKHABISA

Chief Financial Officer & Acting

Executive Officer: Corporate

Services

MR DUMISANI SIBAYI

Executive Officer: Heritage

Conservation Management

MS MAMAKOMORENG

NKHASI-LESAOANA

Executive Officer: Heritage

Information, Policy & Skills

Development


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S A H R A M A N AG E M E N T

BEN MWASINGA

Manager: Built Environment

CLINTON JACKSON

Manager: National Inventory

LESA LA GRANGE

Acting Manager: Maritime &

Underwater Cultural Heritage

PHILLIP HINE

Acting Manager: Archaeology,

Palaeontology and Meteorites

NTUTHUKO MAGWAZA

Manager: Information

Communication and Technology

KGOPOTSO PHASHA

Manager: Finance

Acting Manager: Human Resources

DISANG KOLWANE

Acting Manager: Supply Chain

Management

LEE-ANNE HENRY

Manager: Internal Audit

REGINA BREGEDA

ISAACS

Manager: Heritage Objects

BONGIWE MADOLO

Management Accountant Finance

ZAIDA ALLIE

Manager: Properties

NTOMBOZUKO

MPHAMBANI

Manager: Facilities

KATHARINE EMMETT

Manager: Strategic Planning M&E

Acting Manager: Comms &

Marketing

MIMI SEETELO

Manager: Burial Grounds Graves

NKOSAZANA QUEENIE

MACHETE

Manager: Heritage Protection

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P E R F O R M A N C E

I N F O R M A T I O N

P A R T


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9 . S I T UAT I O N A L A N A LY S I S

SAHRA achieved 90% of its planned 2018/19 targets based on its mandate as enacted in the National Heritage Resources Act (NHRA). This substantial 22% increase in programme performance is the highest performance achieved so far in SAHRA’s 2015 to 2020 Strategy. This high performance was achieved through improved systems and processes for performance and monitoring. In addition to this, SAHRA also managed to achieve a clean audit for the first time in its 18 years of existence.

9 . 1 P E R F O R M A N C E E N V I R O N M E N T

9.1.1 Annual performance trends

C o m p a r a t i v e a c h i e v e m e n t a n a l y s i s

2014/15

P e r f o r m a n c e a c h i e v e d P e r f o r m a n c e n o t a c h i e v e d

8 0

2015/16 2016/17 2017/18

2 0

8 1

1 9

6 8

3 2

9 0

1 0

9.1.2 Reviewed situational analysis

The 2018/19 situational analysis was reviewed with executives and the Council on 23 August 2018. A SWOT analysis was done with focus on both core functions (mandate) and support services, as per the SAHRA value chain as shown in Figure 2. In addition to this, a strategy session was held with all management levels of staff, and later with Council, in order to clarify a clear way forward for SAHRA for the 2019/20 financial year.

2018/19

9 0

1 0

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S A H R A Va l u e C h a i n

S t a k e h o l d e r &

Pa r t n e r s h i p s

Nomination & Identifi cationG

rading

Declaration

Protec

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Human Resources Finance Technology Procurement

G o v e r n a n c e a n d O v e r s i g h t

Table 1 provides an overview of a SWOT analysis that was performed for each of the core business and support functions. The SWOT analysis established the current status of both internal (Strengths and Weaknesses) and external (Opportunities and Threats) environments affecting the institution in order to determine whether SAHRA’s governance structures are efficient and effective.

Va l u e c h a i n – S W O T a n a l y s i s

Strengths Weaknesses Opportunities Threats

Nomination and Identification

Awareness and promotion Lack of capacity to monitor and protect the number of sites being nominated

Education and public awareness

Increased number of nominations of sites from political office-bearers

Fosters social cohesion No control over number of sites identified and nominated

Positive public participation

Lack of control over number of nominations - impact on operational abilities


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Promotes collective ownership of heritage

Monitoring, survey, inspection, management, identification and assessment capacity

Funding UNESCO World Heritage Sites nomination pressure (failure to meet national heritage sites criteria)

Collaboration and co-operation with other stakeholders

Poor quality information provided by nominators

Potential to protect and preserve sites

Unclear site boundaries

Insufficient budget External stakeholder and partner engagement, collaboration and co-operation

Grading

Guidelines were developed and analysis done to assist efficiency and effectiveness of the grading process

Backlog of sites that need grading

Policy Unawareness of the significance of grading and declaration, hence stakeholder motivation for grading is often not heritage-orientated but land reform and expropriation-based

Involvement of community stakeholders in the assessment of grading of heritage resources

Lack of capacity to monitor and protect number of sites being graded

Have well-functioning committees

ICMPs and heritage agreements

Declaration

Issue of backlogged sites has been analysed and a strategy has been developed

Efficiency of addressing backlog of sites due to capacity

Opportunity to create awareness around declared sites on the heritage liberation route and possible tourism opportunities linked to this

Landowner and stakeholder buy-in

Signage and identity Public objections

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2 0


Protection and Conservation

Clear legislation Not enough capacity within SAHRA to complete all Agency Agreement responsibilities within timelines

Large number of archaeology and other specialist university graduates looking for work in the sector

Lack of co-operation from provincial government regarding its provincial heritage mandate hence lack of PHRA capacity/competency

Ineffective management of heritage resources

Collaboration opportunities with NHC

Competing needs for funding and resources with other services within the government sphere

Unfunded/costing of Act Utilisation of Council members’ networks to leverage opportunities regarding resource allocation and roles

Land expropriation

National cases for permitting and Section 38 cases are successfully completed within timelines

SAHRIS is not universally adopted and effectively utilised

Heritage is a growing sector

Vandalism of sites

Lack of job creation opportunities in communities/lack of economic impact

Lack of skills in the sector to protect heritage assets

Public’s misunderstanding around SAHRA and NHCs' roles

Stakeholders and Partnerships

Four heritage agreements with strategically identified institutions (2017/18 financial year)

Lack of capacity in the legal unit to review all agreements timeously

Communities need to be involved with heritage management in order to create social cohesion and build social capital

Lack of co-operation from Governmental departments in order to improve regulation and compliance with SAHRA requirements

Lack of legal action taken on heritage agreements due to lack of funding

PPI opportunities for SAHRA-owned properties (income generation)

Lack of intervention from DAC

New heritage collaborations with universities

Compromised public perception of SAHRA

Partnership with international counterpart

Heritage sector working in silos

Limited funding and capacity to undertake marketing

Strategy for sourcing and co-ordinating partnerships

Unresourced heritage priority outcomes (Outcome 14) - no resources made available for thisCollaboration with

potential partners


2 1


Promote and Educate

Highly skilled professionals Lack of education and awareness of what heritage really is - insufficient resources to market heritage resources

Education and enhanced marketing

Promotion of Entity limited by funder's requests

Strong presence of SAHRA through exhibitions at DAC events

No capacity for stakeholder lobbying

School-level heritage education

Strong focus on knowledge dissemination in heritage sector

Silo planning/ horizontal planning within SAHRA

Digitisation of SAHRIS

Human Resources

All staff trained according to the HR Training Plan

Lack of resources to ensure that the performance management system is responsive to rewards and recognition policy

Better opportunities for staff from bursary programme

Limited external specialist skills pool

Bursary programme New organisational structure cannot be fully implemented due to budget constraints

Facilitate an environment of mutual respect and reciprocity

Loss of specialist employees

Implementation of performance agreements and reviews of performance management system

Alignment of roles and responsibilities to mandate and across units

Reorientation of the management approach

Annual turnover rate below 10% (7.95%)

Progression after training Staff consultation

Increase in the number of internships at SAHRA

Environment is not conducive to staff engagement and productivity – no consultative management system or approach

Re-alignment of organogram to improve effectiveness of operations

Speed of digitisation, human resources/skills needed to manage the pace/changes

Succession Plan for capacitating the organisation (to be approved)

Capacity exists in units that are redundant

Highly skilled professionals Inadequate capacity in EXCo

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2 2


Finance

Implementation of property maximisation plan (strategy) in order to generate income

Maintenance of heritage assets - loss of revenue

Maintenance of heritage assets - to generate revenue

DAC-funding increase below inflation and also not according to activity/zero-based budgeting requirements

Further cost containment measures out of place for all staff and Council (i.e. travel and catering)

Performing unfunded mandate with own resources - PHRA work

External service provider for the collection of debt

DAC over-reliance

Poor debt collection Using SAHRIS for GRAP103 to build a business case for the heritage sector

High compensation budget in relation to goods and services

Business and funding model complete

Lack of understanding of legal procedures regarding control of properties

Wide use of SAHRIS -potential financial opportunities, access to information and processing

Further budget cuts

Economic environment

Irregular expenditure and poor contract management

Projects being assigned to SAHRA from DAC without funding attached to the project

Technology

SAHRIS developed SAHRIS is slow and not user-friendly

Heritage management is moving into the digital sphere

Loss of data as a result of hardware constraints

SAHRIS is well known within the heritage community

Old hardware still being used

Using ICT to facilitate and streamline procedures

Undetected vulnerabilities which may lead to poor productivity and data loss

Controls have been put in place to manage administrative rights across SAHRIS

PHRAs systems are not aligned with SAHRIS

SAHRIS is internationally competitive

Complex IT systems

Improved ICT capacity/support

Lack of funding for vital ICT infrastructure

SAHRIS has potential to generate income revenue

New ICT policies developed for managing ICT more effectively

Training of PHRAs so that they can make use of SAHRIS and market it

SAHRIS downtime

Exploring open source software


2 3


Procurement

SCM units’ employees are knowledgeable of the prescripts

Lack of understanding of the business that results in poor monitoring and procurement

Opportunity to improve SCM systems

High reputational risk and impact to the organisation

Sufficient staff complement within Finance

SCM training of business unit provided

Lack of co-ordination with units and supportive business and procurement plans

Alignment of processes to function efficiently and effectively

Lack of specialist suppliers for SCM database for core businessImprovement in SCM

functions, including 100% of suppliers paid within 30 working days

Governance and Oversight

Clean governance Efficiency of governance structures, i.e. poor admin of the agendas and minutes received late

New Council is an opportunity to improve the business

Negative audit outcomes

Depth and experience in the organisation at all levels

Opportunity to improve the organisation due to change

Inclusive Council Lack of diversity of skills, i.e. no/few businesspeople

Opportunity to develop a clear, concise and relevant strategy for SAHRA

It takes time to get to understand the organisation

Clean audit outcome Creating closer ties with DAC

Integration of planning across units operationally

Danger of complacency and of getting ahead of the game

Leverage funding due to high performance and a clean audit

Derailment/loss of morale because of instability at the topImprovement in the

efficiency of meetings

Improved communication from CEO's office

Not addressing reoccurring challenges (PHRA, NHRA issues)

Opportunity to explore the location of offices

Policies on strategic planning cycles vs Council cyclesQuestionnaire on

SAHRA’s public perception through SAHRIS

Good legislation

9.1.3 Public participation through cultural and heritage tourism demand

Partnerships and public participation are key drivers of the entity’s mandate. World’s leading category of international trade and tourism is increasingly offering a range of cultural heritage products, from visiting monuments to discovering unique ways of life as supply for increasing cultural and heritage tourism demand. Culture and heritage tourism has been gaining importance recently, not only for its economic gains, but due to more sustainable approaches. As rural and regional economies go through difficult times of change, it may seem to some local communities that heritage can

A N N UA L R E P O R T 2 0 1 8 / 1 9

2 4

help in terms of economic gains. When what is old and valued in the community can no longer serve its original function, surely it can still attract funding and tourism as a part of cultural heritage. Communities are constantly consulted on decisions of heritage operations.

9.1.4 National Development Plan (NDP)

SAHRA has a responsibility to implement the National Development Plan (NDP) to ensure that the ideals of its existence are balanced between heritage and development. The implementation of the National Heritage Resources Act (NHRA), should contribute towards the elimination of poverty and reduction of inequality by 2030 and more directly to Outcome 14 which relates to social cohesion and nation-building. SAHRA did a report on its 25-year overview of Outcome 14 as requested by the DAC. Based on the 5-year MTSF cycle (2015 to 2020 Strategy), it was found that SAHRA has performed successfully on its target so far. 2019/20 will be the last year of this cycle and hence an analysis will be done to confirm SAHRA’s continued success in quantitatively achieving its objectives.

9.1.5 Engage cultural heritage and tourism expertise in conservation and promotion

Successful conservation and preservation of culture and heritage sometimes require a balance between commercial imperatives and the conservation of a suite of heritage values, including historic, archaeological, architectural and aesthetic significance and the significance of the sites to associated communities.

9.1.6 Design interpretation and oral history as an integral part of the heritage experience

Interpretation provides meaning and understanding to communities and visitors to heritage sites. It is a central part of the experience of cultural heritage and has significant ramifications on the quality and authenticity of a cultural heritage site or heritage object. Effective interpretation requires knowledge about the heritage

being presented, expertise in communication and interpretive design and the ability to create an effective interpretation plan.

9 . 2 O R GA N I S AT I O N A L

E N V I R O N M E N T

9.2.1 Organisational Development (OD) process

The newly approved Organisational Structure was implemented on 1 November 2016. The rest of the structure is implemented as and when vacancies occur. No additional funds were made available for this purpose, so no new unfunded posts have been filled. SAHRA is currently busy with the development of a Business Plan that may lead to a review of the Organisational Structure. Due to budget constraints, vacant positions are considered for freezing before re-advertising.

9.2.2 Financial planning for budgeting, capital raising and price setting

Finances are essential to the viability of the heritage place as a tourism product and focus for conservation. Requirements for adequate capital, access to grants and other sources of funding and the need for careful budgeting and financial planning are essential for continued success of an operation. The review of the funding model and investigation of opportunities to capitalise and raise additional revenue from heritage resources will be essential.

9.2.3 Effectivecommunicationandmarketing strategies based on sound market research

An effective communication and marketing strategy is necessary for tourism success and is highly dependent on market research and other key success factors, including objectives and clear concepts and financial planning. Minimal elements of the communication strategy have been implemented. The critical factor remains the continuous implementation thereof.


2 5

9.2.4 Staffretention/turnover

The scarcity of skills within the heritage resources sector remains the biggest challenge, as few people are qualified in this sector and the qualified group is also not very representative. More attractive and competitive remuneration structures in other institutions have resulted in SAHRA experiencing a relatively high staff turnover rate. As a result, gaps were created in the implementation of the core heritage resources management functions. A retention strategy and a rewards and recognition policy has been approved by Council and will be implemented.

9.2.5 Functional performance management system

SAHRA did not have an effective and functional performance management system. One of the outcomes of the OD process was a more improved and refined system. Extensive training was provided to employees and performance contracting and performance reviews are now taking place. The Reward and Recognition Policy has been approved by Council and will be implemented.

9.2.6 Inter-governmental relations

The successful implementation of the South African Resources Agency Information System (SAHRIS) continues to establish a systematic approach to the co-ordination of the South African heritage resources management. This has called for essential co-operation from the various stakeholders, more so from the national and provincial departments and local municipalities as they play a critical role in the effective management of the heritage resources. There is, however, an urgent need to regulate the use of SAHRIS as it would standardise the kind of heritage resources information being collected and ensure up-to-date recording of the national estate database. In the long run, reports from this system will effectively be useful to policy and decision-makers.

1 0 . S T R AT E G I C

C O N T E X T

SAHRA’s strategy aims to fulfil its primary regulatory mandate as prescribed by NHRA. SAHRA is the primary custodian and imprimatur (regulator) of South African national heritage. The heritage resources of any country are naturally reflective of its history. Considering the complexity of South Africa’s past, the country’s collective heritage estate can be perceived to be inequitably diverse and potentially divisive. A deeper reading of SAHRA’s legislative mandate suggests an imperative that SAHRA’s role goes beyond passively managing random or ad hoc collections of “ill fitting” heritage assets towards one that actively identifies, assess and manages an integrated portfolio of heritage assets that collectively communicate South Africa’s history in a cohesive, dignified and unified manner.

1 0 . 1 K E Y P R I O R I T Y

A R E A S A N D A

S T R AT E G Y M A P

F O R S A H R A

Given the above-mentioned strategic context, SAHRA must fulfil key imperatives, or pillars, in support of its mandate. The revised Annual Performance Plan 2019/2020 will map out how the strategic goals will be pursued by the organisation for this financial year. The following key focus areas have been reviewed to ensure that the outcome-orientated goals are still aligned to address the aspects, issues and challenges as identified as part of the situational analysis review process.

The table below provides an indication of these key focus areas as broken down in terms of Pains (factors that will prevent SAHRA from making progress towards the attainment of the strategic intent) and Enablers (those factors that will remove the bottlenecks and challenges within SAHRA and will provide a platform for attainment of the strategic agenda).

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2 6

K e y f o c u s a r e a s – p a i n s a n d e n a b l e r s

Key priority areas

Pains Enablers

Staff retention/turnover/staff morale Skilled and knowledgeable workforce and transformation

Costing of NHRA Clear mandate and purpose

Budget limitations and revenue generation Collaboration, partnerships and stakeholder relations (funding and core service delivery)

Public perception, awareness and socio-economic development

Branding and awareness

Resistance to change / innovativeness Organisational restructuring

Lack of capacity to manage HRM (whole value chain) Established relationships

Lack of promotion in community engagement Promotion of collective ownership and awareness through community engagement

Lack of leadership and ownership (accountability and responsibility)

Functional performance management system

Lack of resources to fund operational costs Sound financial management (budgeting and spending of budget)

Business development Improved audit outcomes

Lack of universal heritage resource system Business process and systems ImprovementIntegrated heritage resources information systems

Fragmented ownership of heritage resources Collective ownership of heritageUntapped heritage opportunities

S o u t h A f r i c a n A s t r o n o m i c a l O b s e r v a t o r y


2 7

1 1 . S T R AT E G I C O U T C O M E -

O R I E N TAT E D G OA L S

SAHRA’s strategy map is based upon the situational analysis conducted to define the status quo of the organisation translated into strategic outcome-orientated goals articulated in the figure below:

Regulated and

Protected Heritage

Resources

Financial

Sustainability

Dynamic

Functioanl

Networks

Social Cohesion

and Upliftment

Professional

and Capacitated

Heritage

Resources

Mangement

Sector

Well-governed

Performing

Organisation

Integrated

Development

Programmes

A N N UA L R E P O R T 2 0 1 8 / 1 9

2 8

SAHRA has defined a set of seven (7) strategic outcome-orientated goals arising out of a situational context that mirrors the key imperatives that SAHRA must pursue that are aligned to the objectives set out for the sector.

S A H R A’ s S t r a t e g i c o u t c o m e - o r i e n t a t e d g o a l s a n d s t r a t e g i c o b j e c t i v e s

Sector strategic objectivesSAHRA strategic outcome-orientated goals

SAHRA strategic objectives

1. A transformed, coherent and development-focused Sector

1. Regulated and protected heritage resources

Assert SAHRA's role as a regulatory body in heritage resources management

2. Nation-building through effective social cohesion programme implementation

2. Social cohesion and upliftment

Strengthen SAHRA as an agent to promote social cohesion and social upliftment through heritage resources management

3. A productive, diverse and inclusive ACH Sector

3.1 Dynamic functional networks

Build SAHRA’s brand internationally and locally through public awareness

3.2 Integrated developmental programmes

Align SAHRA’s initiatives to national socio-economic and developmental objectives through identification, conservation, protection and promotion of heritage resources

4. Sound fiscal management and a sustainable ACH Sector

4. Financial sustainability Maximise immovable heritage assets for income generation and conservation

5. Sound governance and the modernising of ACH Sector to ensure its efficiency and effectiveness

5. Well-governed performing organisation

Implement effective and efficient corporate governance systems within SAHRA

6. A professional and capacitated ACH Sector

6. Professional and capacitated heritage resources management Sector

Building the skills and capacity of the heritage resources sector to ensure its ongoing development and sustainability

S A H R A S t a f f M e e t i n g


2 9

T h e S o u t h A f r i c a n A s t r o n o m i c a l O b s e r v a t o r y

( S A A O ) i s t h e N a t i o n a l C e n t r e f o r o p t i c a l a n d i n f r a r e d a s t r o n o m y i n

S o u t h A f r i c a a n d t h e o l d e s t p e r m a n e n t o b s e r v a t o r y i n t h e S o u t h e r n H e m i s p h e r e .

T h e S A A O r e c e i v e d n a t i o n a l h e r i t a g e s t a t u s i n D e c e m b e r

2 0 1 8 . T h e o b s e r v a t o r y ’s p r i m e f u n c t i o n i s t o

c o n d u c t f u n d a m e n t a l r e s e a r c h i n a s t r o n o m y a n d

a s t r o p h y s i c s , i t d o e s s o b y p r o v i d i n g w o r l d - c l a s s

f a c i l i t i e s t o s c i e n t i s t s f r o m a l l o v e r t h e w o r l d .

A N N UA L R E P O R T 2 0 1 8 / 1 9

3 0

B u s h m a n’ s K l o o f L a n d s c a p e

P R O G R A M M E 1 : A D M I N I S T R AT I O N

The aim of the Administration Programme is to ensure SAHRA’s operational and financial performance through strategic leadership. This programme focuses on three strategic objectives:• Assert SAHRA’s role as a regulatory body in heritage resource management• Implement effective and efficient corporate governance systems within SAHRA• Maximise immovable assets for income-generation and conservation

1 2 . P E R F O R M A N C E I N F O R M AT I O N

BY P R O G R A M M E /AC T I V I T Y/

O B J E C T I V E


3 1

S t r a t e g i c o b j e c t i v e s , p e r f o r m a n c e i n d i c a t o r s p l a n n e d t a r g e t s a n d a c t u a l

a c h i e v e m e n t s

Strategic objective

Performance Indicator

Actual Achievement

2017/2018

Planned Target

2018/2019

Actual Achievement

2018/2019

Deviation from planned

target to Actual

Achievement for

2018/2019

Comment on deviations

Assert SAHRA’s role as a regulatory body in Heritage Resources Management

1.1 Number of policies, regulations, norms and standards approved by Council

9 5 15 10 An additional 10 policies were achieved due to: -2017/18 planned policies only being approved by Council in this financial year. -Emerging business needs required new/formal regulation

Implement effective and efficient corporate governance systems within SAHRA

1.2 Unqualified audit opinion outcome

An unqualified Audit was achieved for 2016/17 and there was 100% implementation of the Audit Action Plan

An Unqualified audit opinion outcome

An Unqualified audit opinion outcome was achieved in the 2017/18 financial year

N/A N/A

1.3 % of compliant invoices of suppliers paid within 30 days

100% of all compliant invoices received were paid within 30 days

100% for the year

Annually 100% of compliant supplier invoices were paid within 30 days

N/A N/A

1.4 Reviewed ICT Strategy

100% of the ICT strategic implementation plan was implemented

Reviewed ICT Strategy

The ICT Strategy was reviewed and approved by Council

N/A N/A

Building the skills and capacity of the Heritage Resources Sector to ensure its ongoing development and sustainability

1.5 % of training interventions rolled out according to the HR training plan

100% of SAHRA staff were trained according to the HR quarterly training plan

100% of training interventions rolled out according to the HR training plan

100% of training interventions were rolled out according to the HR training plan

N/A N/A

1.6 % Implementation of the individual performance management system

100% of the 2018/19 performance contracts and reviews were concluded

100% of all 3 performance reviews concluded

There was 100% implementation of the individual performance management system

N/A N/A

1.7 Maintain the annual turnover rate at 10%

7.95% annual staff turnover for the year was achieved

Annual staff turnover below 10%

Annual turnover was below 10% at 9.72%

N/A N/A

A N N UA L R E P O R T 2 0 1 8 / 1 9

3 2

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N/A


3 3

Programme 1 focuses on the administration component of the organisation and contributes to regulating heritage resources management and implementing corporate governance systems. The programme achieved an overall performance of 100% and achieved 6 policies this financial year compared to the last year (2017/18).

The programme contributed to asserting SAHRA’s role as a regulatory body in heritage resources management by producing fifteen policies. It is evident that the operational functions of being a regulatory body in the heritage resources management sector continues to grow with the execution of an additional ten unplanned policies. The ten additional policies achieved, were due to a backlog of policies from the previous financial year, and unexpected business needs that urgently required regulations to be developed or modified. One such example is the new Records Management Policy, that was adopted to ensure that all heritage-related records are managed in a well-organised and concise manner to make processing of records more efficient and effective for SAHRA staff and stakeholders.

Another noteworthy policy was the SAHRIS User Access Management Policy, which was designed to provide both staff and SAHRIS users with a guide of best practices for the access and control of the platform.

Lastly, the ESS policy was developed to end paper-based leave applications hence containing costs and reducing monitoring risks.

In terms of implementing effective and efficient corporate governance systems, the Entity achieved an unqualified clean audit for 2017/18. SAHRA also managed to pay all service providers/suppliers within 30 days of receiving their compliant invoices and reviewed the existing ICT Strategy to ensure that the Entity’s ICT infrastructure can support its SAHRIS platform effectively.

In order to build skills and capacity within the heritage resources sector, the Entity successfully implemented its performance management system as well as its full HR training plan, and also managed to keep its annual staff turnover rate below 10% at 7.95%.

B o l t ’ s Fa r m G r e e n s l e e v e s

A N N UA L R E P O R T 2 0 1 8 / 1 9

3 4

P R O G R A M M E 2 : B U S I N E S S D E V E L O P M E N T

Programme 2 focuses on business development and the management of national heritage resources by means of:• Strengthening the Entity as an agent to promote social cohesion and social upliftment • Assert the Entity’s role as a regulatory body in heritage resources management



Strategic objective


Actual Achievement

2017/18

Planned Target

2018/2019

Actual Achievement

2018/2019


target to Actual

Achievement for

2018/2019



2.1 Number of heritage resources inspected

25 10 28 18 An additional 18 resources were inspected/monitored due to:- Requests from the DAC, other

authorities, or the community- Contraventions or complaints

of damaged heritage resources

- Urgent inspections for reasons of permitting

- For convenience of location proximity and inspection conditions

- Declaration of a site within the financial year

2.2 Percentage of compliant nationally-mandated Section 38 applications finalised within 60 days

94% 100% 100% N/A N/A


2.3 Percentage of compliant permit applications processed within 60 working days

95% 100% 98.3% 1.7% The South African Heritage Information System (SAHRIS) was down, which affected the processing of permits, hence the target was not achieved. After this incident, SAHRA put together a strategy of how it intends to stabilise this system and its ICT infrastructure so that this risk is mitigated.

2.4 Number of heritage resources assessed for grading

7 5 5 N/A N/A

2.5 Number of heritage resources declared

8 6 8 2 Barberton Makonjwa Mountain originally was identified as being one site, however, it was later identified as 4 different sites, due to the 4 different localities of which the mountain range needed to be declared


3 5

Strategic objective


Actual Achievement

2017/18

Planned Target

2018/2019

Actual Achievement

2018/2019


target to Actual

Achievement for

2018/2019


2.6 Number of monuments and memorial sites rehabilitated and erected

6 6 14 8 The Zwelethemba project was initially a request from the DAC and was initially identified as one project before its inception. After planning, the project was divided into two phases. Over time, the requirements from the DAC and ZAC changed again, which resulted in a total of nine graves and one wall of remembrance. The relevant families were consulted individually for each grave.

2.7 Publication of a report on the current content of the inventory of the national estate

1 1 1 N/A N/A

2.8 Number of Heritage collections in state custody inventorised

1 1 1 N/A N/A

Maximise immovable heritage assets for income generation and conservation

2.9 Number of SAHRA-owned properties re-purposed for income generation

2 2 0 2 Due to delays in procurement, service providers for the refurbishment of the properties were not appointed within the validity period. This matter has been escalated to an executive level; the projects have been deferred to 2019/2020 for completion.

B u s h m a n’ s K l o o f

A N N UA L R E P O R T 2 0 1 8 / 1 9

3 6K

ey

p

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rm

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ua

l a

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me

nt

s

Perfo

rman

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dica

tor

Actu

al

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evem

ent

2014

/15

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al A

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vem

ent

2015

/16

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al

Achi

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ent

2016

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Actu

al

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2017

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38 a

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3 7

Programme 2 has achieved an overall performance of 77%, which was unchanged from the previous financial year, however, the unachieved indicators differed. One indicator that was finally achieved in this financial year after three consecutive years of non-achievement, was the finalisation of Nationally-mandated Section 38 applications within 60 days. The slight amendment of this indicator for the 2018/19 financial year ensured that the Entity was only measuring the performance of its own mandate and not that of other authorities.

The Entity managed to strengthen SAHRA as an agent to promote social cohesion and social upliftment by means of carrying out 28 site inspections. The additional 18 unplanned site inspections were due to ad hoc requests from the DAC and other authorities, as well as responses to the damage of heritage resources identified by the public.

The Entity also overachieved when ensuring heritage sites were protected through the grading of six nominated heritage sites and the declaration of eight sites. This year’s overperformance of declared heritage resources is due to the declaration of four geosite localities in the Barberton Makhonjwa Mountain. Fourteen memorials were rehabilitated and refurbished successfully. A specific highlight for the Entity was the successful completion of the nine Zwelethemba graves and wall of remembrance which honours the nine victims killed and 21 other struggle icons who fought for liberation at Zwelethemba in 1985.

In terms of SAHRIS, the gradual co-operation of the PHRAs and other authorities allowed the Entity to continue to update the summary of the national estate. The Entity also managed to identify and inventorise the Cradock Congregational Church Collection onto SAHRIS by means of a rigorous process of documenting this collection.

Like any institution, the Entity has experienced operational challenges. To address this, it has proactively identified, and tackled these challenges to ensure that its services are efficient and effective. A few of these solutions, such as improving the ICT infrastructure to enable the migration for the stability of SAHRIS, has only taken place in the latter part of the year. Hence even though the Entity managed to process 174 permits, an outstanding three permits were not processed within the compliant deadline due to SAHRIS’ intermittent downtime experienced from Quarter 1 to 3. In order to mitigate the risk of SAHRIS’ downtime, a migration to an alternative server has since taken place in January 2019.

Though the identification of profitable SAHRA-owned properties was effective, the procurement of services to re-purpose these properties was not finalised. As a result, completion of the Nederberg 1 and 2 cottages was not achieved. It is, however, anticipated that these properties will be completed within the 2019/20 financial year.

A N N UA L R E P O R T 2 0 1 8 / 1 9

3 8

P R O G R A M M E 3 : P U B L I C E N GAG E M E N T

The aim of the Public Engagement Programme is to build SAHRA’s brand internationally and locally through public awareness, as well as strengthen itself as an agent to promote social cohesion and social upliftment.



Stra

tegi

c ob

ject

ive

Perf

orm

ance

In

dica

tor

Actu

al

Achi

evem

ent

2017

/201

8

Plan

ned

Targ

et

2018

/201

9

Actu

al

Achi

evem

ent

2018

/201

9

Dev

iatio

n fro

m p

lann

ed

targ

et to

Act

ual

Achi

evem

ent

for 2

018/

2019

Com

men

t on

devi

atio

ns

Align SAHRA's initiatives to national socio-economic and developmental objectives through identification, conservation, and promotion of heritage resources

3.1 Number of formal partnership agreements with strategically identified institutions

5 4 4 N/A N/A

3.2 Number of HRM knowledge dissemination engagements with communities and stakeholders

6 3 12 9 Most of the knowledge dissemination events were requested by other institutions. One event was due to an urgent need for stakeholder engagement to clarify roles and responsibilities.

Build SAHRA's brand internationally and locally through public awareness

3.3 Number of papers on heritage resources management published

6 3 3 N/A N/A

3.4 Number of marketing programmes implemented

5 3 4 1 Due to the unveiling of the Nelson Mandela House Plaque taking precedence over the invite from the DAC for their reconciliation day in Quarter 3, SAHRA compensated by exhibiting at the DAC's Human Rights Day in Quarter 4 instead


3 9

K e y p e r f o r m a n c e i n d i c a t o r s , p l a n n e d t a r g e t s a n d a c t u a l a c h i e v e m e n t s

Perfo

rman

ce

Indi

cato

r

Actu

al

Achi

evem

ent

2014

/15

Actu

al

Achi

evem

ent

2015

/16

Actu

al

Achi

evem

ent

2016

/17

Actu

al

Achi

evem

ent

2017

/18

Plan

ned

Targ

et

2018

/19

Actu

al

Achi

evem

ent

2018

/19

Devi

atio

n fro

m p

lann

ed

targ

et to

Act

ual

Achi

evem

ent f

or

2018

/201

9

Com

men

t on

devi

atio

ns

3.1 Number of formal partnership agreements with strategically identified institutions

2 4 4 5 4 4 N/A N/A

3.2 Number of HRM knowledge dissemination engagements with communities and stakeholders

New indicator 4 (indicator was slightly changed to incorporate general community stakeholder meetings)

6 6 3 12 9 Most of the knowledge dissemination events were requested by other institutions. One event was due to an urgent need for stakeholder engagement to roles and responsibilities.

3.3 Number of papers on heritage resources management published

13 7 6 6 3 3 N/A N/A

3.4 Number of marketing programmes implemented

New indicator 7 (indicator was amended in 2016/17 to include different types of marketing programmes, as opposed to exhibitions exclusively in 2015/16)

10 5 3 4 1 Due to the unveiling of the Nelson Mandela House Plaque taking precedence over the invite from the DAC for their reconciliation day in Quarter 3, SAHRA compensated by exhibiting at the DAC’s Human Rights Day in Quarter 4 instead

Programme 3 focused on public engagement, and for the second time, the Entity achieved 100% performance for this programme.

Four strategic partnerships were finalised and signed during the last financial year. The Letter of Agreement (LoA) between SAHRA and the National Heritage Council is testament to SAHRA’s commitment to fostering partnerships to ensure that youth of South Africa embrace their heritage and culture.

In terms of knowledge disseminations, the Entity overperformed by nine additional engagements. SAHRA has a responsibility to promote heritage by delivering and attending presentations, conferences, workshops and seminars, both at a national and international level. Apart from university lectures and seminars conducted in universities in and around South Africa, SAHRA took part in the East African UNESCO workshop. This workshop showcased the crucial role that SAHRA plays in promoting the South Africa’s Maritime heritage estate. It also provided an opportunity to share knowledge on maritime heritage management strategies internationally. The Entity was also invited to partake in the commemoration and celebration of King Makebana who led the Ndebele tribe. The event was attended by various government officials and traditional leaders from the various tribes,

highlighting unity and cohesion amongst the many colourful cultures in South Africa.

Lastly, the conversation regarding the role SAHRA plays in identifying, promoting and preserving heritage, continues to be shared to various communities through the dissemination of knowledge on various radio stations.

SAHRA continues to publish both academic and non-academic articles and journals to build SAHRA’s brand and create awareness on heritage management. This year SAHRA contributed to three publications on heritage resources and management, one of them being a paper on ‘Leadership and the role SAHRA can play to facilitate connectivity with and between museums’. The Entity also highlighted the role of women in the heritage sector by contributing to an article to the heritage portal called ‘Celebrating women in Maritime Archaeology’.

In closing, SAHRA engaged in five marketing events. The Entity took part in the SABC disability career expo conference to ensure that the Entity promotes its inclusiveness and access to youth with disabilities. In addition, SAHRA implemented a sign project for the Nelson Mandela House plaque project at the end of 2018. This was done to celebrate the centenary of Nelson Mandela’s life, and hence a democratic South Africa.

A N N UA L R E P O R T 2 0 1 8 / 1 9

4 0

The adjusted budget shows that the Entity has spent 76% of its budget in achieving 90% of its predetermined objectives. The expenditure for the period under review is R62.7 million including the project funds and personnel costs. The variance is R20.1 million attributable to the projects which could not be fully implemented during the financial year. Cost containment measures were strictly adhered to.

C a p i t a l i n v e s t m e n t s

2017/2018 2018/2019

Programme/activity/objective

BudgetActual

Expenditure

(Over)/Under

ExpenditureBudget

ActualExpenditure

(Over)/Under

Expenditure

Programme 1: Administration

35 946 34 804 1142 36 866 36 018 848

Programme 2: Business Development

35 843 23 784 12059 44 323 25 668 18 655

Programme 3: Public Engagement

2 007 1 527 480 1 683 1 034 649

Total 73 796 60 115 13681 82 872 62 720 20 152

R e v e n u e c o l l e c t i o n

2017/2018 2018/2019

Sources of revenue EstimateActual

Amount Collected

(Over)/Under

CollectionEstimate

ActualAmount

Collected

(Over-) /Under-

Collection

Grant from DAC 53 861 53 861 - 55 650 55 650 -

GRAP 104 4 000 4 000 - - - -

Interest 280 558 -278 894 1 133 -239

Interest from previous years

1 000 419 581 558 558 -

Rent Revenue 1 200 1 192 8 1 815 1 054 761

Permit Fees and Other

955 999 -44 3 955 1 372 2 583

Realisation of Deferred Revenue

12 500 3 019 9 481 20 000 3 781 16 219

Total 73 796 64 048 9 748 82 872 63 548 19 324

1 3 . L I N K I N G P E R F O R M A N C E W I T H

B U D G E T S


4 1

Funding for the Agency comprises of grants received from the Department of Arts and Culture, project funds and own generated income from rentals with interest earned on investments in deposit accounts. The actual revenue collected, is 91% of non-exchange revenue and 9% exchange revenue, proportionately in current year. Rental income is generated from properties owned by SAHRA. Included in the permit fees and other is an amount of R3 million which is for the prior year’s savings from the compensation of employees and also the lease income smoothing of R905 as per Generally Accepted Accounting Standards.

SAHRA has successfully delivered on revenue collection by: - Generating lease agreements and extension

agreements for tenants on an annual basis and need basis.

- Retain proper records and related correspondence relating to annual revenue increases.

- Managed debts effectively through regular monitoring, timely rental and permit fees invoicing, and reporting long outstanding debts to relevant committees.

- In the event of breach of a contract, the was matter referred to the Chief Financial Officer within 30 days; letters of demand were issued.

Undercollection on other income is due to reserved funds to compensate staff with a once-off payment to augment 2018/19 salary increases which will be paid out in the current financial year. There is also undercollection relating to projects which could not be implemented during the financial year. There are measures in place to finalise all the outstanding projects that were not completed in the previous years.

Permit fees were over budgeted. The forecast was based on the assumption that the new permit fees would have been implemented. SAHRA has successfully implemented a debt management policy and consistently applies the policy to keep measures on target. All accounts over 30 days were also handed over to legal services. Impact on undercollection did not have an impact on SAHRA’s service delivery. However, this negatively affected SAHRA’s cashflow trend and budget targets.

The overcollection of interest is largely attributable to the project funds that were transferred by DAC and also due to favourable interest rate fluctuations for cash held in financial institutions.

The South African Heritage Resource Agency (SAHRA) aims to achieve its mandate by seeking to achieve on the following strategic outcome-orientated goals:• Regulated and protected heritage resources• Social cohesion and upliftment• Dynamic functional networks and integrated

developmental programmes• Financial sustainability• Well-governed performing organisation• Professional and capacitated heritage resources

management sector

SAHRA’s overall achievements regarding these listed strategic outcome-orientated goals are outlined below:

R E G U L AT E D A N D

P R O T E C T E D H E R I TAG E

R E S O U R C E S

New policies and guidelines

In pursuing the South African Heritage Agency’s (SAHRA) goal of being the leading regulatory body in heritage

1 4 . S A H R A B U S I N E S S U N I T

P E R F O R M A N C E

A N N UA L R E P O R T 2 0 1 8 / 1 9

4 2

resources management, the SAHRA is responsible for developing policies, norms, standards, guidelines and regulatory documents relevant to heritage resources. In the 2018/2019 fiscal year, SAHRA has brought forward the following policies to relevant SAHRA committees for review and recommendation:

Name of regulatory document Purpose of regulatory document

Wreck Resources Permit Policy Clarify SAHRA’s position, aligning the entity’s policies with national and international legislation, norms, and standards of practice for work on shipwrecks and their associated cargo, debris, and artefacts.

Internal Permitting Procedure for Processing of Permit Application

The document was updated to address gaps identified during the processing and issuing of permits. It contains detailed instructions on how to proceed when a permit application is received on SAHRIS to ensure standardisation.

Permit Guideline for Applicants Describes the procedures to be followed and documentation needed when applying for a permit to export heritage objects.

Firearms Guidelines Drafted in partnership with the South African Police Service (SAPS), it intends to ensure that firearms of heritage value are not deactivated, exported, altered or destroyed without approval from SAHRA.

J.J. Oberholster Library Management Policy

This policy was reviewed and updated for alignment with the most recent best practices.

Regulation on Restitution of Heritage Objects

Considering that Section 41 of the NHRA makes provision for the restitution of heritage objects, regulations, guidelines and a policy were successfully drafted to allow directly affected community members to make a claim for a heritage object that is either under the national estate or being held by, or curated in a publicly-funded institution.

Guideline on Restitution

Policy on Restitution

Site inspections

SAHRA has actively engaged in monitoring the condition of plenty of heritage resources and sites. Such visits are important to ensure that these resources are well-maintained and conserved according to SAHRA’s standards.

In the past fiscal year, SAHRA has conducted many visits to both declared and proposed national heritage sites to ensure compliance to national regulations. Most notably, the Entity organised an unplanned visit to Robben Island in response to reports of unpermitted work on the site. SAHRA has found several unauthorised ongoing refurbishment and maintenance works on the island and issued a cease work order to the Robben Island Museum administration. The island is a declared National Heritage Site and World Heritage site by UNESCO. SAHRA has also conducted an unplanned visit to Parliament to advise the Department of Public Works and the South African Police Service about a planned security fence around the perimeter of the building.


4 3

O t h e r s i t e v i s i t s i n c l u d e :

Heritage resource/site Purpose/reasons for inspection

Kramat of Sheik Yusuf Heritage Day visit; requested by the DAC

Bo-Kaap Heritage Day visit; response to increasing public call to have the site declared as a National Heritage Site by the DAC

Ratelgat Farm Assess grading potential

Constitution Hill Monitor and assess the condition of the site

Cradle of Humankind Monitor and assess the Fossil Hominin Sites; five-year review for the Cradle of Humanity Integrated Management Plan (IMP)

Lesseyton Methodist Church Assess grading potential

Fort Hare University Monitor and assess the condition of the site

Bushmans Kloof Assess grading potential

Florisbad Museum and Research Centre Finalise the grading of the site

Mendi Memorial Monitor and assess the condition of the site

Haerlem Shipwreck Monitor and assess the condition of the site and adherence to permit conditions

Thomas T. Tucker Shipwreck Monitor and assess the condition of the site

Nolloth Arniston Shipwreck Monitor and assess the condition of the site

Emlotheni Massacre Site Monitor and assess the condition of the site

Lowveld Massacre site Monitor and assess the condition of the site

Wintervelt Massacre site Monitor and assess the condition of the site

New partnerships

In the 2018/2019 fiscal year, SAHRA has established key partnerships to enable the entity to better fulfil its mandate of promoting nation-building and social cohesion. New Memoranda of Understanding (MOU) were crafted with the Department of Military Veterans and the Department of Traditional Affairs and are being analysed by the interested parties.

Permit information and Section 38 applications

In the past fiscal year, SAHRA has received 154 permit applications, with 149 being approved and five refused. The permit applications are divided in the following categories:

Permits

Permit Type Number of permit applications

Alteration 3

Analysis 1

Collection 1

Conservation 0

Dating 1

A N N UA L R E P O R T 2 0 1 8 / 1 9

4 4

Permits

Permit Type Number of permit applications

Destruction 8

Excavation 22

Export (permanent) 46

Export (temporary) 18

Filming 8

Maintenance/restoration 7

Pre-disturbance survey 4

Remove from original position 23

Rescue relocation 4

Sampling 4

Test excavation 4

Total 154

Refusal 5

T y p e s o f p e r m i t s i s s u e d i n 2 0 1 8 / 2 0 1 9

1 5 %

3 1 %

1 2 %

1 5 %

2 7 %

Excavation Export (Permanent) Export (Temporary) Remove from original position Other


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Most notably, SAHRA has received a permit application to export two paintings (“Brilliant Meteor on the Zambezi” and “Rev. Hahn Addressing the Damara Commando”, both by Thomas Baines), which was denied. An appeal against the decision was received outside of the allocated 14-day appeal window. It was noted that the applicant had confused the 14-day period to mean 14 working days. The Appeals Committee analysed the circumstances of the late appeal and decided to allow the appeal to proceed. After robust debate, the Committee allowed the export of “Brilliant Meteor,” but upheld the refusal of “Rev. Hahn Addressing the Damara Commando” due to its significance to the history of Southern Africa.

In 2018/2019 SAHRA received 871 Section 38(1) and Section 38(8) development applications. Details are presented in the following table:

Total applications 871

Section 38(1) and 38(8) development applications Number of comments issued

Interim comments issued 391

Response to NID 27

Letters 96

Finals comments/decisions 357

SAHRA applications – final comments/decisions 9

PHRA applications – final comments/decisions 348

G r a p h i l l u s t r a t i n g t h e r a t e o f g r o w t h i n p e r m i t a p p l i c a t i o n s o n S A H R I S

2016/17

C a s e s

15 000

12 000

9 000

6 000

3 000

0

2017/18 2018/19

9 84

3

11 3

16

12 5

05

National inventory management

Amongst SAHRA’s core functions is the management of the inventory of the national estate. This is a central database of all identified heritage resources within the country. This database is facilitated through the South African Heritage Resources Information System, more commonly known as SAHRIS. Beyond functioning as a database of heritage resources, this system also facilitates the core application management system through which all heritage applications are received by SAHRA, as well as Provincial Heritage Resources Authorities (PHRAs) that have adopted the system. Each year the content of this system grows through active projects to populate the inventory.

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During the 2018/2019 fiscal year, SAHRIS has seen an increase in site and object records and heritage applications. According to Google Analytics, the system has had over 120 000 active users around the world, with 83.25% of the users residing in South Africa.

G r a p h i l l u s t r a t i n g t h e r a t e o f g r o w t h o f t h e n a t i o n a l i n v e n t o r y o v e r t h r e e y e a r s

2016/17

S i t e s O b j e c t s

0

2017/18 2018/19

20 000

30 000

40 000

50 000

60 000

10 000

47 8

51

34 7

82

48 6

27

48 3

54

50 3

80

53 6

77S O C I A L C O H E S I O N A N D

U P L I F T M E N T

The promotion of social cohesion and social upliftment through heritage management, is a key driver for SAHRA. This goal is manifested through SAHRA’s ongoing engagements, both locally and internationally, as well as through the projects the entity undertakes.

SAHRA is mandated to assist other state departments to identify graves of liberation struggle icons who died outside the Republic of South Africa and re-inter their remains within the Republic of South Africa. It is against this background that the National Department of Arts and Culture invited SAHRA and other critical stakeholders to participate and deliberate on a concept document that will eventually culminate in the construction of resistance and liberation heritage monuments in Botswana. The delegation, led by the Department of Arts and Culture, included SAHRA, military veterans, the Department of Basic Education, Culture Arts, African National

Congress, Government of Botswana, National Archives, National Heritage Council, Freedom Park, Government Communication Information System and other departments. They engaged with and conducted various site visits for the construction of the two monuments in Gaborone and Lobatse.

In March 2019, SAHRA represented South Africa at the 2019 United Nations Educational, Scientific, and Cultural Organisation (UNESCO) East African Conference on the Protection of Underwater Cultural Heritage in Malindi, Kenya. The meeting was an important opportunity for SAHRA to cement ties with UNESCO and, as a recent signatory to the 2001 Convention on the Protection of Underwater Cultural Heritage, to share experiences with UNESCO and other counterparts to SAHRA in the East African region. The meeting was a success and allowed SAHRA to establish and maintain functional networks with colleagues from over 20 African and European countries who have either ratified the Convention or intend to do so within the next few years.


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Other significant highlights include SAHRA’s attendance at the SANP’s five-day Heritage Management workshop hosted by SANPs at the Skukuza camp in the Kruger National Park. This workshop aimed to provide the SANPs People and Conservation officers with theoretical and practical heritage resources management training. SAHRA officials had an opportunity to engage with its counterparts from the Department of Tourism, Department of Environmental Affairs, African World Heritage Fund and National Web-based Environmental Screening Tool.

A successful engagement was held with the Cape Peninsula University of Technology (CPUT) in the third quarter of the financial year. Presentations were made by the various units in HRM relating to the various functions undertaken by SAHRA and how CPUT could assist in terms of mapping, GIS, surveying and 3D modelling. An informal agreement was agreed to between SAHRA and CPUT. The crux of the agreement was that CPUT would make students available to SAHRA to assist with certain projects which would then contribute towards the students’ academic outcomes in their respective courses. On 29 November 2018, a round-table discussion was

convened in Cape Town, the purpose of which was to discuss the state of railway heritage in South Africa, foster working relations among different role players and interested parties and map the way forward to address some of the challenges in preserving the railway heritage objects. Attendees included SAHRA, Transnet, Umengini Steam, Heritage Railway Association of South Africa (HRASA), Sandstone, Ceres Rail, and other interested individuals.

On 24 July 2018, SAHRA participated in a panel discussion held at the South African National Gallery regarding the legal framework for the management of heritage objects of South African artistic interest. The discussion was very well attended and was a great opportunity for the SAHRA to engage with the public. Under Section 9 of the NHRA, all state and state-funded bodies are required to preserve heritage resources under their control. Noting this legal mandate, SAHRA met with the DAC to discuss the challenges the Entity is currently experiencing concerning the enforcement hereof.

S A H R A C h a i r p e r s o n , P r o f B o u i l l o n , u n v e i l i n g t h e

N e l s o n M a n d e l a P l a q u e

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The financial year saw a number of important meetings with various law enforcement bodies around the protection of, and prosecution of crimes relating to heritage objects. SAHRA had a successful engagement with the South African Police Service to fortify relations and to stimulate the development of a new memorandum of understanding (MOU) was drafted between SAHRA and CAOSA.

On 27 November 2018, SAHRA participated in a meeting convened by the Department of Arts and Culture to revive the National Forum for the Law Enforcement on Heritage-related Crime (NALEH) in order to address heritage-related crime. The meeting was attended by various stakeholders, including Customs.

Following the NALEH meeting, a representative of the Directorate of Priority Crime requested a meeting on 22 January 2019. Another meeting was held on 4 February 2019, also attended by a representative of the Cape Town office of the Director of Public Prosecutions that forms

part of the National Prosecuting Authority. The challenges concerning the investigation and prosecution of heritage-related crime, as well as SAHRA’s initiative to use SAHRIS as a tool for reporting on statistics, were discussed at this meeting.

Stemming from the earlier engagements, the Directorate of Priority Crime invited SAHRA to present to their work session held in Silverton and it is hoped that this herald the beginning of heritage-related crime receiving the appropriate attention.

Summary of the inventory of the national estate

SAHRA annually produces a summary and analysis of the inventory of the national estate. The 2018/2019 financial year saw the publication of the 2018 report. This document provides summarised data regarding the content of the inventory as at the end of the 2018 calendar year.

T y p e s o f s i t e s i n t h e i n v e n t o r y o f t h e n a t i o n a l e s t a t e

Archaeological Battlefield Burial Grounds & Graves Conservation Area Cultural Landscape

Geological Living Heritage/Sacred sites Meteorites Monuments & Memorials

56%

9%0.45%

0.39%0.36%0.79%

0.45%

26%

6%


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Internationally, heritage inventories are recognised as a vital tool in the management of risk. The 2018 summary and analysis of the national estate follows this principle by incorporating data from entities such as the South African National Space Agency (SANSA) and the Council for GeoScience (CGS), to critically analyse both natural and anthropogenic risks affecting heritage resources in South Africa. The full report is available for download on SAHRIS (https://sahris.sahra.org.za).

N a t i o n a l a n d p r o v i n c i a l h e r i t a g e s i t e s i n r e l a t i o n t o s e i s m i c i n t e n s i t i e s

National Heritage Sites

Provincial Heritage Sites

L E G E N D

S E I S M I C I N T E N S I T I E S

IV

V

VI

VII

VIII

DY N A M I C F U N C T I O N A L N E T W O R K S A N D I N T E G R AT E D

D E V E L O P M E N TA L P R O G R A M M E S

SAHRA hosted the unveiling of the Nelson Mandela Prison House Plaque on 14 December 2018. SAHRA unveiled the Nelson Mandela Prison House Plaque at Drakenstein Correctional Centre (formerly known as Victor Verster). The Nelson Mandela Prison House Plaque was unveiled as part of the Nelson Mandela centenary celebrations, by the chairperson of the SAHRA Council, senior officials of the Correctional Services as well as delegates from the Department of Arts and Culture. The Nelson Mandela House is regarded a highly significant heritage resource which symbolises Madiba’s contribution to the struggle for liberation in South Africa. During this event, the Nelson Mandela Prison House Plaque was unveiled as part of the signage project which aims to raise awareness.

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The celebration of the centenary of Nelson Mandela was in 2018 and the South African Heritage Resources Agency could not think of a better time to host this special remembrance of the remarkable periods in time that allowed for the liberation of the oppressed people of South Africa. The purpose of this event was to celebrate a man that sacrificed a lot for the joys and freedom that we enjoy today by honouring the struggle that our former leader endured for the liberation of our people.

The SAHRA collaborated with the National Heritage Council (NHC) and the University of Pretoria (UP) to conduct a heritage seminar at UP in September 2018. The purpose of the seminar was to create awareness of the various opportunities in the heritage sector and the mandates of the SAHRA and NHC. The aim was to increase awareness that these two entities can empower students who want to pursue a career in heritage. The rationale for the seminar was to ensure that the role of the heritage sector is understood as stipulated in Section 13(e) of the National Heritage Resources Act No. 25 of 1999.

SAHRA has also drafted an article about its role in the successful repatriation and re-interment of the remains of Moses Kotane and JB Marks. The article will serve as a reminder for future generations.

Two important heritage promotion projects were carried out in 2018/19. The first forms part of an ongoing initiative to install interpretive signage for coastal heritage sites. Signs were installed in Milnerton and Hout Bay. These signs help to build SAHRA’s brand by raising awareness encouraging collective ownership of maritime and underwater cultural heritage. During women’s month, SAHRA published an article in the Heritage Portal to showcase the past and present contributions made by women to the field of maritime archaeology, both locally and internationally.

In order to illustrate the role of South Africa’s legislative framework in the identification of heritage resources, SAHRA submitted a paper to the Journal of African Cultural Heritage Studies, titled Development and the Identification of heritage resources: The South African Perspective. This paper interrogates the legislative

mechanisms imposed on developments and how these work together to provide an intervention in terms of the identification of heritage resources in South Africa. This paper is currently under review ahead of publication.

A paper titled Leadership and Interconnectivity: Leadership and the role SAHRA can play to facilitate connectivity between museums, was presented by SAHRA at the South African Museums Association (SAMA) Conference held on 22 to 25 October 2018. The presenter won the South African Museums’ President’s Award for Best First-time Presenter and a paper based on the presentation was submitted for publication in the Heritage Portal on 20 December 2018.

SAHRA has successfully moved its Pretoria-based satellite office to new premises. This strategic move is to ensure SAHRA’s visibility and accessibility to all its stakeholders and enhance its satellite office operations. The new office is on the first floor of the Suncardia Shopping Centre in Arcadia, Pretoria.

F I N A N C I A L

S U S TA I N A B I L I T Y

Strategically, SAHRA has identified its properties as an opportunity for the long-term financial sustainability of the Entity. The Property Maximisation Strategy which was approved in 2014, was developed with the intention of repurposing SAHRA-owned properties to create an additional income stream for the Enity and hence maximise their return on investment of these assets.

Over the past five years, as part of the implementation of the Maximisation Strategy, SAHRA pursued Public-Private-Partnership (PPP) initiatives with National Treasury. The aim of this strategic partnership was to provide socio-economic benefits to the surrounding communities and other relevant stakeholders. This PPP process included the call for Expression of Interest to assist in identifying the best use concepts for each of the properties. Significant interest has been submitted for the properties, particularly SAHRA’s own national heritage site, Dal Josephat, situated in Paarl. The property has been identified as having a varied number of uses, of which most have tourism potential. Other potential


5 1

avenue streams reside with public departments and entities that recognise the property’s maximisation for their own strategic purposes. To explore these avenues further, multiple engagements with relevant and interested public departments, local municipalities and private entities, on both a local and national scale, have and will continue to be engaged in. Subsequent to this, SAHRA has embarked on the implementation of the following strategy:

1. Dal Josafat Farm (Grade I): While exploring the potential use of 232 hectares of space of this property, SAHRA has appointed the services of an architect to design the restoration of vandalised buildings and increase security measures on the property. The upgrade and repair to several units and the use of the open space for farming activities, is in the planning process. The objective of the varied use is to offer as much opportunities to communities to participate in the economy through the conservation of heritage.

2. Struisbaai Fishermen Cottages (Grade II): The proposed concept development design for these cottages in Struisbaai has passed the public objection process and has been approved by the local municipality. A pre-feasibility study for the proposed design has been completed and SAHRA is in the process of submitting the Closing Report to National Treasury to inform further discussion of the proposed development for hospitality use with the private sector.

3. Het Posthuys Museum (Grade II): One of the oldest buildings in the province is the Het Posthuys which functions as a museum and is suitably located on the main road of a seaside suburb in the Western Cape. Currently, there are minor restorations of the building taking place. The property, also registered as a PPP initiative, displays potential for a modern conference facility to be constructed, along with a light eatery. The minor upgrade of the museum is the steppingstone for the overhaul of the curation of the museum which intends to more effectively highlight the history of the first inhabitants along the coastline. The long-term plan for the property is the construction of a 60-seater conference facility with a restaurant and upper deck.

1.

2.

3.

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4. Welcome Cottage (Grade II): Welcome Cottage and the surrounding buildings are situated on a large property. The concept design for a potential guest house has been designed, and the permit application was submitted to the Provincial Heritage Resources Authority to approve the proposed construction works, however a re-application needs to be done to affect the updated works.

5. Old Gaol (Grade II): The Old Gaol in Makhanda, Eastern Cape, holds significant history and heritage. The renowned Xhosa Chief Maqoma was imprisoned at the Old Gaol along with other anti-colonial fighters before being transported to Robben Island. The proposed repurposing of the courtyards and cells will be determined after a structural assessment of the building is complete. Structural engineers have been appointed for the assessment and execution of the repair work. The administration block was refurbished with the aim of leasing it to a suitable tenant. The portion of the property is leased, and the remaining portion is occupied by the SAHRA Eastern Cape staff. The property attracts a number of local and international tourists. The repurposing of the property will consider the historical events of the space.

6. Old Residency (Grade II): Another potentially viable property, located in King Williams Town in the Eastern Cape, is the Old Residency (Grade II) which neighbours the biggest mall in the town. The property has been identified to have a number of uses, including a multi-purpose centre, clinic, library or student accommodation. SAHRA has received interest from developers which have offered reasonable monthly rental opportunities which would assist the entity in its financial sustainability in the long term.

4.

5.

6.

SAHRA’s financial sustainability requires that these heritage properties are managed as assets. The PPP process is a new venture for SAHRA and the processes are still to be tested before they can be fully endorsed. The investments made into the properties is with the intention of generating income and acting on the mandate to ensure the conservation and preservation of the national heritage estate for future use. As with any

immovable asset investment, an injection of funds is required to be able to gain any reward. In the case of SAHRA’s properties, this injection should ideally have been made ten years back to reap any of the benefits today. Despite this delay, the success in this venture relies on the synergy and performance between and of the relevant units within SAHRA and other entities for a profitable outcome.


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W E L L - G O V E R N E D P E R F O R M I N G O R GA N I S AT I O N

SAHRA continues to ensure good governance by developing governance policies that are current and relevant. SAHRA managed to develop and review the following governance policies to ensure that the entity remains up to date with best practices and legislative changes:

Governance policies Unit Developed/reviewed

1 Records Management Policy Facilities Reviewed

2 Supply Chain Management Policy Supply Chain Management

Reviewed

3 Strike Contingency Human Resource Management

Developed

4 Recruitment Policy Reviewed

5 HR Delegations Reviewed

6 Sexual Harassment Policy Reviewed

7 Substance Abuse Policy Reviewed

8 Learnership and Internship policy Developed

9 Onboarding and Probation Policy Developed

10 Bursary Policy Reviewed

11 ESS Policy Reviewed

12 ICT Security Policy Information and Communications Technology

Developed

13 ICT Policy Reviewed

14 Cloud Computing Policy Developed

15 SAHRIS Policy National Inventory Unit

Developed

16 SAHRIS User Access Management Policy Developed

Of particular focus, was the development of the Records Management Policy with the intention to ensure that the system is properly regulated, continuously available and obtains all operational and heritage-related records necessary for future reference and research purposes.

This was also the year that SAHRA reflected on ICT governance. The ICT Strategy, Security Policy and newly-developed Cloud Computing Policy were developed to ensure the stability, security and safe cloud computing of SAHRA’s ICT systems. The Entity also strengthened its services by negotiating and improving the Management of Service Level Agreement with ICT service providers. In addition, the Unit successfully implemented the migration to a new Microsoft Office environment as well as an integrated printing system. This was done to ensure that SAHRA’s systems not only facilitate productivity, but also contain printing costs. With the fourth industrial

revolution approaching, the Entity has also been working on a new ICT Business Case that will take SAHRA to the next level of accessibility of heritage in the South African environment in the next financial year.

Governance Committees:

SAHRA has an active Employment Equity and Training (EE&T) Committee that keeps the entity relevant as far as equity, training, and staff development is concerned. The Bursary Committee and Training Monitoring Committee, which are both subcommittees of the EE&T, have played a significant role in monitoring of and advising on staff bursaries as well as planning of training and execution. This EE&T Committee also provided disability sensitisation training for the Entity; it is anticipated that this awareness will lead to further improvements in the accessibility of our work environment.

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P R O F E S S I O N A L

A N D C A PAC I TAT E D

H E R I TAG E R E S O U R C E S

M A N AG E M E N T S E C T O R

Capacity building in the heritage resources sector

SAHRA is continuously building and strengthening its partnership with the Culture, Art, Tourism, Hospitality, and Sport Sector Education and Training Authority (CATHSSETA) in order to build the skills and capacity of the heritage resources sector through providing graduates internship opportunities. The mandatory and discretionary grants from CATHSSETA were approved in the 2017/18 financial year and hence SAHRA hosted 13 interns within the 2018/19 financial year. These interns assisted with daily operations and learnt about heritage resources through site visits, stakeholder meetings, conferences and other projects. CATHSSETA did an interim audit of the programme and confirmed that they

would like to continue their partnership with SAHRA. The discretionary grant for 2019/2020 financial year was subsequently approved and the next intake of interns will commence on 1 September 2019. In addition to local internships, SAHRA also partnered with another institution that places international interns on a short-term basis. It is SAHRA’s experience that these interns go back to their respective countries full of praise for the work that SAHRA does.

Externally, SAHRA built capacity in the field of heritage resources management by involving both local and international universities with SAHRA’s research projects and providing heritage seminars and exhibitions. These institutions include the University of Cape Town, the University of Pretoria, the Cape Peninsula University of Technology, Leiden University (Netherlands), University of South Africa and Sol Plaatje University. It is hoped that such initiatives will help to encourage more students to specialise in heritage management as this field is severely under-resourced locally.

T h e r e l o c a t i o n o f t h e C o m m o d o r e Wr e c k


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Tertiary institution Type of engagement Outcome

University of Cape Town SAHRIS lectures Sharing knowledge in the heritage sector

Maritime lectures UCT field school research project

University of Pretoria Various units lectured Sharing knowledge in the heritage sector

Leiden University (Netherlands) Maritime lectures Involvement in the Dutch oral history project

Sol Plaatje University Lecture series Sharing knowledge in the heritage sector

University of South Africa SAHRIS lectures and training The University of South Africa invited SAHRA to present SAHRIS to their staff currently engaged with the Thabo Mbeki Presidential Library Project, which has resulted in the conclusion of an agreement that will see the collection of presidential gifts received incorporated onto SAHRIS. This training session also provided an opportunity for SAHRA to present SAHRIS to the former first lady, Zanele Mbeki.

The Entity also managed to create interest in heritage for the younger generations at the Heritage Education Schools Outreach Programme (HESOP). The programme encourages these younger South Africans to learn about and identify with their heritage thus building pride and patriotism.

Training and development of the sector

As part of SAHRA’s ongoing mission to assist Provincial Heritage Resources Authorities (PHRAs), SAHRA provided training in the use and benefits of the South African Heritage Resources Information System (SAHRIS) to the Heritage Free State Council. This also allowed SAHRA to assist the Free State PHRA with inventory management challenges.

Internalstaffcapacitybuildingfortheheritage sector

SAHRA has worked hard to ensure that internal staff are capacitated with the skills to deliver quality and professional services in the sector. Staff training has been very successful; not only did SAHRA achieve 100% implementation of the Entity’s training plan for 2018/2019, but forty-three (43) training interventions were rolled out during the financial year. A total of 324 training attendees

participated in training, of which 46% were youth (>35) and 46% were between the ages of 35 and 55. SAHRA employed on average 82 employees in the 2018/19 financial year; 95% of these employees attended the relevant training courses.

I N T E G R AT E D

D E V E L O P M E N TA L

P R O G R A M M E S

In order to align SAHRA’s initiatives to national socio-economic and developmental objectives, the Entity plays an important role in ensuring that nominated heritage resources of national significance are graded and declared for their subsequent protection. The publication of the 2017 summary and analysis of the national estate provided insight into some of the geographic gaps in the previously nominated national inventory. For the 2018/2019 financial year, SAHRA focused on sites outside metropolitan and urban settings in order to address these gaps. SAHRA conducted several site visits and processed grading applications for sites that fall mainly in rural areas and small towns. This was done with the intention of broadening the cultural landscape of heritage resources. The sites selected and assessed for grading in the 2018/19 year can be seen in the table on the following page.

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R e s o u r c e s a s s e s s e d f o r g r a d i n g i n 2 0 1 8 / 1 9

Number Heritage resources graded as Grade 1 Date graded

1. The Ohlange Institute July 2018

2. Bushman's Kloof Rock Painting Landscape October 2018

3. Lesseyton Church (assessed as not having Grade 1 significance)

November 2018

4. Coalbrook Mine Disaster Memorial January 2019

5. June 16 Route January 2019

The sites in the table above were all assessed as having grade 1-significance apart from the Lesseyton Methodist church. The Lesseyton Methodist Seminary is located in Lesseyton village in the Eastern Cape, South Africa. It was historically a theological training school that survived 33 years (1883 to 1916). It is a Christian church and has strong ties to the history of missionaries and the development of formal theological training schools for Africans. It forms part of a large Wesleyan Methodist denomination that operates across Southern Africa. While Lesseyton certainly possesses certain qualities and features that may be considered for national acknowledgment, the current condition of the remaining building and the uncertainty pertaining to the future management of the site, hinders any possibilities of it being graded as grade one. It was thus recommended that the site be reconsidered for grading at a future stage when the circumstances around the site are greatly improved. In keeping with our focus on non-urban sites, SAHRA also conducted inspections at Zuurfontein farm; Athlone Site; Witfontein; Mokopane and sites associated to mining in Kimberly.

In terms of declared sites, SAHRA managed to declare eight sites, as seen the table below.

Heritage resources declared Date graded Date declared

Barberton Makonjwa Mountain - 4 geosite localities: 1. Geotrail2. Theespruit3. Tjakastad4. Mooiplaas

July 2016 15 June 2018

5. The South African Astronomical Observatory (SAAO) September 2013 21 December 2018

7. The grave of Chief Tyali added to the declaration of the University of Fort Hare

March 2018 21 September 2018

6. The Wreck of the Sao Jose Slave Ship March 2018 16 November 2018

8. The grave of Rev. Mahabane March 2011 15 March 2019

Refusals and delays in declaration of heritage resources

Rev. Mahabane’s grave was identified as part of the Founding Fathers Project and was graded in 2011. The declaration was approved in 2011 pending the upgrade to the gravesite, which was only done in 2017. Hence the grave was only officially declared and gazetted in 2018.

SAAO was graded in 2013, however, the declaration process was delayed due to the lack of consent from the landowner to declare the site. The landowner, National Research Fund (NRF), had concerns about the limitations that the declaration would have on their expansion plans. Subsequently, SAHRA met with the NRF and agreed that a formal HA be entered into for the declaration of the site.


5 7

The Mandela Collection was approved for declaration by the SAHRA Council in April 2018 pending the public notification and submission of an inventory. Subsequently, meetings have since taken place to find a way forward to retrieve the necessary documents. It is anticipated that once these documents have been obtained, that SAHRA will formally declare the collection publicly.

The OR Tambo House’s declaration was approved by the SAHRA Council in May 2018, pending finalisation of the agreement by DAC and the Zambian Department of Tourism and Arts. A letter was sent to DIRCO and the DAC on 15 August 2018 in order to ensure the finalisation from both departments, however, no response has been received as yet.

Canteen Kopje was graded in 2017, however, there were delays caused by challenges in stakeholder engagement. The community and other stakeholders are still to find consensus on the matter so that SAHRA can ensure buy-in for the proper regulation of the site.

National inventory

SAHRA undertook a project to extract heritage resources identified through Heritage Impact Assessments (HIAs) in order to address the geographic gaps in the national inventory. To date, 556 sites were added to the inventory through this project. Extracting data from HIAs provides an opportunity to close the identified gaps, but will take

many years to complete due to the volume of HIAs held on SAHRIS.

In the 2018/2019 financial year, SAHRA played a crucial advisory role on a number of projects that fall outside of SAHRA’s direct mandate. SAHRA advised on the management of two archaeological sites, Masorini and Thulamela, that are outside of its jurisdiction. The Masorini site and museum is situated near the Phalaborwa Gate and is currently open to park visitors. Plans by SANP to develop the site to promote tourism, inclusive of walkways, information panels and the redevelopment of the site museum. Thulamela, an Iron Age site located in the Pafuri section of the Kruger Park on its northern border, was nominated by SANP for Grade 1 status. SANP requested SAHRA to undertake a site visit and to advise on future research possibilities and enhancement of the tourism potential of the site.

SAHRA also joined the Joint Project Committee to Commission the Nelson Mandela Statue at the United Nations Headquarters in New York. The United Nations (UN) gave the South African Government space at its HQ in New York for the erection of a statue of Nelson Mandela to commemorate the centenary of one of the world’s greatest statesman. SAHRA provided technical input and advice to the committee with regards to regulations and compliance. The statue was unveiled in September 2018.

C a s t l e o f G o o d H o p e

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G O V E R N A N C E

P A R T


5 9

E X E C U T I V E AU T H O R I T Y

1 . I N T R O D U C T I O N

Corporate governance embodies processes and systems by which public entities are directed, controlled and held to account. In addition to legislative requirements based on a public entity’s enabling legislation, and the Companies Act, corporate governance with regard to public entities is applied through the precepts of the Public Finance Management Act (PFMA) and run in tandem with the principles contained in the King’s Report on Corporate Governance.

Parliament, the Executive and the Accounting Authority of the public entity are responsible for corporate governance.

2 . P O R T F O L I O

C O M M I T T E E

There were no meetings held with the Portfolio Committee in the 2018/2019 financial year.

3 . T H E AC C O U N T I N G

AU T H O R I T Y / T H E

C O U N C I L

Responsibilities and duties of the Council

The primary role of the Council is to provide leadership to the Executive of the Entity in discharging the responsibilities assigned to it under its establishment statute (NHRA), the DAC policies, other relevant legislation and approved codes of good practice in governance and business behaviour.

Council members of SAHRA are valued as professionals on the basis of their individual expertise, and they are not to represent the sole interest of their companies or

institutions. The functions below should be read with the governance manual developed by the DAC.

Function of the Council

Functions as outlined in Section 14 read with Section 16 and other relevant provisions of the NHRA, PFMA and other relevant legislation, shall include the following:

• Run the affairs of SAHRA in line with the NHRA, the PFMA, DAC priorities, Medium-Term Strategic Framework (MTSF), Medium-Term Expenditure Framework (MTEF), the National Development Plan (NDP) and other relevant government strategies and policies.

• Setting broad strategy for the SAHRA to meet its objectives and performance targets.

• Ensure proper preparation and approval of Strategic and Annual Performance Plans, compliance reports, key procedures and policies.

• Approve decisions related to strategic initiatives such as commercial ventures, significant acquisitions, internal restructures and disposals.

• Approve the annual budget of the SAHRA.• Ensure that SAHRA follows corporate planning

provided by the Minister of Arts and Culture, National Treasury and the DAC.

• Set SAHRA’s values and standards of conduct and ensure that these are adhered to, in the interest of stakeholders, employees, customers, suppliers and communities in which it operates and generally safeguard the reputation of SAHRA.

• Provide leadership of SAHRA within a framework of prudent and effective controls which enable risk to be assessed and managed.

• Set the direction, strategies and financial objectives and ensure that the necessary resources are available for SAHRA to meet its mandate and obligations.

• Always act in the best interest of SAHRA.

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Council Charter

The Council Charter was reviewed and approved by Council on 27 January 2017.

C o m p o s i t i o n o f t h e C o u n c i l

Name

Designation (in terms of the Public Entity

Board structure)

Date appointed

Date of the end of the term

Area of expertise

Other committees (e.g.: Audit Committee)

Number of

meetings attended

Prof Susan Bouillon

Chairperson 1 August 2016

31 July 2019

Law Business Development Committee (BDC)

13

Prof Ncedile Saule

Council Member 1 August 2016

31 July 2019

Language and Literature

Heritage Resources Management Committee (HRM)

11

Prof Henry Bredekamp


31 July 2019

Historical Research


9

Dr Gregory Houston


31 July 2019

Political Scientist and Research

Business Development Committee (BDC)

13

Dr Mthobeli Guma


31 July 2019

Medical Anthropology


11

Dr Antonia Malan


31 July 2019

Archaeology Heritage Resources Management Committee (HRM)

14

Ms Reyhana Gani


31 July 2019

Chartered Accountant

Audit and Risk Committee (ARC)

16

Dr Jonathan Sharfman


31 July 2019

Maritime Archaeology


6

Mr Mohlomi Masooa


31 July 2019

History CSC - Corporate Service Committee

9

Mr Donald Lithole


31 July 2019

Heritage CSC - Corporate Service Committee

7

Ms Thembeka Semane


31July 2019

Business Science

Audit and Risk Committee (ARC)

4

Ras Mpho Molapsi


Resigned 31 July 2018

Anthropology Business Development Committee (BDC)

4

Mr Moses Makhweyane


31 July 2019

Law CSC - Corporate Service Committee

15


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Committees of Council

Committee

Number of

meetings held

Number of members

Names of membersw

Corporate Services Committee (CSC) 3 3 Mr Moses Makhweyane (Chairperson)

Mr Donald Lithole

Mr Mohlomi Masooa

Ms R Gani is optional

Business Development Committee (BDC)

1 3 Ras Mpho Molapisi (Chairperson until July 2018)

Prof Susan Bouillon (Chairperson from July 2018)

Dr Greg Houston


3 5 Prof Henry Bredekamp (Chairperson)

Dr Mthobeli Guma

Dr Antonia Malan

Prof Ncedile Saule

Dr Jonathan Sharfman

Audit and Risk Committee (ARC) 7 5 Ms Vuyokazi Menye (Chairperson)

Ms Thembeka Semane

Mr Denga Raumedzisi

Ms Reyhana Gani

Remuneration of Council members

• Members are remunerated per meeting attended. • Members who are employed by the State are not remunerated.• Travel, accommodation and meals are paid to members who attend meetings.• The Chairperson and Chairperson of each subcommittee receive a cell phone allowance.

T o t a l e x p e n s e s 2 0 1 8 / 1 9 f o r C o u n c i l r e m u n e r a t i o n :

Expense Amount (R)

Accommodation and meals R172 819

Airfares and bus tickets R661 412

Catering R43 538

Telephone R26 840

Total R904 609

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Name of Council memberTotal

remuneration received (R)

Prof Susan Bouillon R95 940

Prof Ncedile Saule R46 200

Prof Henry Bredekamp R58 956

Dr Gregory Houston R50 720

Dr Mthobeli Guma R46 222

Dr Antonia Malan R53 976

Ms Reyhana Gani R33 004

Dr Jonathan Sharfman R24 615

Mr Mohlomi Masooa* -

Mr Donald Lithole* -

Ms Thembeka Semane R16 839

Ras Mpho Molapisi* -

Mr Moses Makhweyane R79 260*No remuneration for the year under review as members work for the public sector

4 . R I S K M A N AG E M E N T

The Company Secretary and Head of Legal is the Chief Risk Officer (CRO) for SAHRA and takes responsibility for implementing Enterprise Risk Management (ERM) in accordance with the Public Sector Risk Management Framework (PSRMF).

SAHRA’s Risk Management Policy is based on the Enterprise Risk Management Framework published by the Committee of Sponsoring Organisations (COSO) of the Treadway Commission and updated with the requirements of the PSRMF. The SAHRA ERM Policy provides a proactive, systematic and integrated approach to risk management.

A comprehensive analysis of key risks based on SAHRA’s objectives is undertaken annually to inform the operational and strategic risks which are further entrenched into the operational processes of the Entity. Risk registers are compiled by management under the guidance of Internal Audit and monitored accordingly by the Audit and Risk Management Committee and Council. In the quest by SAHRA to improve risk management processes, a full

review of the strategic risks is performed by management to ensure that risks are aligned to the strategic objectives of the Entity.

The risk management process is put in place by management to improve the identification and management of risks, amongst others: • Ongoing risk assessments and review of risk

management activities that includes the review of strategic risk registers on a quarterly basis by the Audit and Risk Committee and Council;

• Facilitating/attending risk training workshops;• Facilitating and co-ordinating the development of

risk registers at strategic and operational levels and aligned to the Entity’s strategic objectives;

• Entrenching risk management as a standard agenda item in committee and unit meetings across the organisation; and

• Review of the ERM Policy to reflect the current risk assessment methodology.

The Internal Audit Unit’s 3-year rolling plan and annual risk-based plan is based on the updated Entity’s Strategic and Operational Risks identified.


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5 . I N T E R N A L AU D I T

The Internal Audit Unit reports that it has complied with its responsibilities arising from Section 51 (1)(a)(ii) of the Public Finance Management Act and Treasury Regulation 27.2.

The Internal Audit Unit provides management with independent, objective assurance and consulting services designed to add value and to persistently improve the operations of the Entity. It assists the Entity to accomplish its objectives by bringing a systematic, disciplined approach by evaluating and improving the effectiveness of risk management, control and governance processes. The following key activities are performed in this regard:• A valuable contribution is made by the Internal Audit

Unit in improving the risk management processes through its input and co-ordination in embedding the key risk management processes within the Entity;

• Assisting the Entity in maintaining adequate controls by evaluating those controls to determine their adequacy and effectiveness, and by developing recommendations for enhancement; and

• Assessing and making appropriate recommendations for enhancing or improving the governance processes in achieving the Entity’s objectives.

The functions of the Internal Audit Unit are executed by a co-sourced arrangement between the in-house Internal Audit Manager and SNG Grant Thornton, an independent assurance, tax and advisory firm, which was appointed for a period of three years to provide SAHRA with comprehensive internal audit services.

Internal Audit has carried out its activities in accordance with its Internal Audit Charter which is reviewed annually

and approved by the Chairpersons of the Audit and Risk Committee and Council.

The following audits were conducted as per the 2018/2019 risk-based Internal Audit Plan:• SMART Review of the APP• Review of Records• Review of Registry Practises• Review of the AFS• Review of Non-Financial Performance Information• Review of the Employee Performance Management

System• Supply Chain Management Review• Internal and External Vulnerability Assessment of the

ICT Environment• Follow-up reviews of prior years’ findings

6 . AU D I T A N D R I S K

C O M M I T T E E

The Audit and Risk Committee is established as an oversight body, providing independent oversight in evaluating the adequacy and efficacy of risk management, control and governance processes in the Entity, which include oversight and responsibilities relating to, amongst others, the: • Internal Audit Unit;• Internal Control and Financial Control;• External Audit (Auditor-General of South Africa -

AGSA);• Financial Reporting and Accounting Practices;• Annual Financial Statements and Accounting Policies;• Performance Management Systems;• Risk Management Processes and Fraud Prevention;• Compliance with laws and regulations.

T h e t a b l e b e l o w d i s c l o s e s r e l e v a n t i n f o r m a t i o n o n t h e A u d i t a n d R i s k C o m m i t t e e

m e m b e r s :

Name Qualifications Internal or external

Date appointed

Date resigned/term ended

Number of meetings attended

Ms Reyhana Gani Chartered Accountant External 24 August 2013

Term ended on 31 July 2016 and was reappointed in October 2016

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Name Qualifications Internal or external

Date appointed

Date resigned/term ended

Number of meetings attended

Ms Thembeka Semane

B.Com. Accounting External 18 October 2013

31 July 2016 and reappointed in August 2017

1

Mr Vhonani Denga Ramuedzisi

Chartered Accountant External 1 June 2015

- 7

Ms Vuyokazi Menye B.Sc. in Computer Science and currently completing a Master’s in Business Administration

External 24 June 2017

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7 . C O M P L I A N C E

W I T H L AW S A N D

R E G U L AT I O N S

The SAHRA complies with the relevant legislations and regulatory frameworks applicable. These include but are not limited to the NHRA, the PFMA, Treasury regulations, Practice Notes and the King Code of Corporate Governance.

8 . F R AU D A N D

C O R R U P T I O N

SAHRA has adopted the Fraud Prevention Strategy which confirms the Entity’s zero tolerance stance towards fraud and corruption. Various channels for reporting allegations of fraud and corruption exist, which includes, amongst others, the SAHRA Fraud hotline email address [email protected] and can also be accessed via SAHRA’s website.

The Fraud Prevention process is managed by the Internal Audit Unit within SAHRA and all allegations received through the various reporting channels are recorded in a Fraud Register which is used as a tool to monitor and report on progress. These cases are reported quarterly to the Audit and Risk Committee.

None of the cases received in the financial year through the fraud prevention channels were related to fraud.

The following measures were put in place to create awareness of fraud and corruption in the workplace:

• Fraud prevention communication sessions and induction

• Branding the Entity with banners and posters• Fraud prevention email communications• Awareness raised on SAHRA’s social media platforms

The opportunity to remain anonymous is afforded to any person who would like to report acts of fraud, theft and corruption and should they do so in person, the representative to whom they report the matter, is obligated to keep their identities confidential, if so requested in line with the entity’s Whistle-Blowing policy.

9 . M I N I M I S I N G

C O N F L I C T O F

I N T E R E S T

The Entity has implemented a process where all new employees complete a conflict of interest form at the point of signing the employment contract. The signing of these forms is updated thereafter on an annual basis, and a Conflict of Interest Register is kept. Attendance registers of all formal meetings within the Entity has a standard Declaration of Interest column that needs to be completed by all attendees.

The current Fraud Prevention Strategy of the Entity highlights that any conflict of interest by any official within the Entity should be disclosed. Declaration of Interest forms are sent out by the Human Resources unit, at least annually, to all employees to declare any business and personal relationships/interests relating to the entity.


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All members of Council and subcommittees are required to declare any conflict of interest at appointment as well as at every meeting. Prior to the commencement of meetings of operational units, such as certain Human Resources and Supply Chain Management units, members of the meeting have to declare any conflict of interest based on its nature. No cases of conflict were identified in the Entity during this reporting period by Internal Audit or External Audit.

1 0 . C O D E O F C O N D U C T

The code of conduct is provided to all new employees at the point of joining the Entity. All employees are then committed, by signing the code, that they are aware of it. SAHRA’s bid adjudication and evaluation committees are also appointed in writing by the CEO and members are provided with the code of conduct upon appointment.

1 1 . H E A L T H , S A F E T Y A N D

E N V I R O N M E N TA L

I S S U E S

SAHRA continues with its Occupational Health and Safety system implementation by conducting training for all safety representatives, including first-aiders and fire marshals. The OHS Act has also been displayed in the open areas for ease of access by staff, contractors and visitors. SAHRA has a very active Occupational Health and Safety Committee that often makes constructive suggestions in addressing health and safety issues in the office environment. The Committee reviews SAHRA’s health and safety practices on a quarterly basis in accordance with an industry-accepted checklist. Regular maintenance of the buildings, systems and equipment is carried out to ensure safety of the staff and assets.

1 2 . C O M PA N Y S E C R E TA RY

SAHRA’s Company Secretary who is also the Head of Legal is well versed in good Corporate Governance, SAHRA’s legislation, which is the NHRA and its Regulations and any other related piece of legislation. The Company Secretary, among others, performs the following duties in ensuring proper governance:

• Advise Council on the implementation of corporate governance programmes.

• Maintains a direct line of communication to the Council Chairperson.

• Provides direct support to Council and guides Executive Management on issues related to Council.

• Provides a central source of guidance and advice to Council on matters of good corporate governance, legal obligations and ethical conduct, as well as providing administrative support to the Council and its Committees.

• Provides guidance and advice to Council on how to discharge their responsibilities in the best interest of SAHRA.

• The Company Secretary ensures that the procedure for the appointment of Council is properly carried out and assists in the proper induction, orientation and development of Council, including assessing the specific training needs of Council and Executive Management in their fiduciary and other responsibilities.

1 3 . S O C I A L

R E S P O N S I B I L I T Y

The Entity participated in promoting heritage as a choice of career by appointing nine heritage-related interns within SAHRA for a period of twelve months. Thirteen of these interns have been placed via a CATHSSETA discretionary grant.

1 4 . AU D I T C O M M I T T E E

R E P O R T

We are pleased to present our report for the South African Heritage Resources Agency (SAHRA) for the financial year ended 31 March 2019.

Audit and Risk Committee Responsibility

The Audit and Risk Committee reports that it has complied with its responsibilities arising from Section 51 (1)(a)(ii) of the Public Finance Management Act and Treasury Regulation 3.1.13.

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The Audit and Risk Committee also reports that it adopts and at least annually reviews an appropriate formal term of reference as its Audit and Risk Committee Charter. The Committee has regulated its affairs in compliance with this Charter and has discharged all its responsibilities as contained therein, except that we have not reviewed changes in accounting policies and practices.

TheEffectivenessofInternalControl

Our review of the findings of the Internal Audit functions work which was based on the risk assessments conducted in the Entity revealed certain weaknesses, which were then communicated to the Entity’s Management and Council.

The following internal audit work was completed during the year under review:• SMART Review of the Annual Performance Plan• Review of Records• Review of Registry practises• Review of the Annual Financial Statements• Review of Non-Financial Performance Information• Review of the Employee Performance Management

System• Supply Chain Management Review• Internal and External Vulnerability Assessment of the

ICT environment• Follow up Reviews of Prior Years’ Findings

The areas of concern relating to the internal control environment that were brought to the attention of Management and the Audit and Risk Committee are populated into an action plan for monitoring. These action plans are then followed up by Internal Audit function to ensure Management’s implementation of actions are aligned to recommendations and address the root causes highlighted to reduce the risk that these issues persist and are being continuously monitored in the more complex areas.

In-YearManagementandMonthly/Quarterly Reporting

SAHRA has built a healthy corporate culture whereby the Council and its Sub-Committees year planner is aligned to the deadlines set out by the Executive Authority and other key stakeholders in the compliance sphere. SAHRA has complied with the National Treasury regulation 29.3.1 by submitting quarterly performance reports to the

Executive Authority. These reports are approved by the Council to ensure that good corporate governance and oversight is present and adhered to.

Evaluation of Financial Statements

The Audit and Risk Committee has reviewed and interrogated the audited Annual Financial Statements of the 2018/19 financial year as well as the corresponding presentations and reports prepared by the Entity’s Management and the Auditor-General, some of which are included in this Annual Report. We have satisfied ourselves that management has complied with all the required accounting standards and have fairly disclosed all relevant information at their disposal.

Auditor’s Report

The Audit and Risk Committee has reviewed the Entity’s implementation plan for matters raised in the prior financial year and we are satisfied that the matters have been adequately resolved. We concur with and accept the conclusions of the Auditor General on the Annual Financial Statements and we are of the opinion that the audited Annual Financial statements be accepted and read together with the management report of the Auditor-General.

Overall Audit Outcome

SAHRA has maintained a clean audit during the 2018/2019 financial year. The Audit and Risk Committee commends the Entity’s Management and Employees for remaining committed and maintaining the high standard that was set in the prior financial year relating to the areas of, but not limited to financial performance, non-financial performance, governance, risk management and compliance with applicable legislation in place.

________________________________________Ms Vuyokazi Menye Chairperson of the Audit and Risk CommitteeSAHRA


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S t e a m l o c o m o t i v e c a l l e d

B l a c k i e / N a t i o n a l H e r i t a g e

O b j e c t

T h e C a p e To w n R a i l w a y & D o c k 0 - 4 - 0 T o f 1 8 5 9 w a s

a S o u t h A f r i c a n s t e a m l o c o m o t i v e f r o m t h e p r e -U n i o n e r a i n t h e C a p e o f G o o d H o p e , a n d t h e f i r s t

l o c o m o t i v e i n S o u t h A f r i c a .

H U M A N R E S O U R C E

M A N A G E M E N T

P A R T

A N N UA L R E P O R T 2 0 1 8 / 1 9

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6 9

1 . I N T R O D U C T I O N

E X E C U T I V E S U M M A RY

SAHRA was busy with multiple Human Resources projects during this financial year. This included implementation of its Recognition and Reward Policy that plays a vital role in the Entity’s Retention Strategy. In addition to this, the Entity has implemented 100% of its Training Plan for 2018/19 and achieved 100% implementation of its performance management system. The Entity also managed to review and develop multiple policies to ensure that it keeps abreast of new national and international regulations. Unfortunately, budgetary constraints do exist which hamper the filling of vacancies for permanent positions, and also interferes with contractual appointments for short-term operational needs.

O V E R V I E W O F H U M A N R E S O U R C E S M AT T E R S AT

S A H R A

The Human Resources Unit continued with the implementation of bursaries, the Training Plan as well as the Performance Management System. The Unit also stabilised the payroll and the employee information system to such an extent that no Human Resource-related audit findings were recorded. Furthermore, the Unit continued to review and develop new policies. SAHRA is a regular recipient of discretionary CATHSSETA grants, which indicate that it is recognised as an employer of choice, especially for heritage-related learning programmes.

S E T H R P R I O R I T I E S F O R 2 0 1 8 / 2 0 1 9 A N D T H E

I M PAC T O F T H E S E P R I O R I T I E S

Strategic concern Impact

Organisational development strategic partner

HR conducts an Annual Staff Satisfaction Survey that measures employee satisfaction, highlights staff concerns and identify remedying measures.

Human resource administrative excellence

The Auditor-General’s audit gave Human Resources a clean bill of health.

Training and development SAHRA has granted twelve (12) bursaries during this financial year and has implemented 100% of its Training Plan. The entity has also hosted 13 CATHSSETA interns and five SAHRA interns in the organisation.

Finance SAHRA has a reliable compensation budget in place.

Recruitment and selection SAHRA continued to appoint high-calibre employees with commensurate qualifications and experience.

Employee relations and management services

SAHRA conducted regular employee wellness interventions and has an agreement with an employee wellness service provider.

Organisational and staff development services

The organisation’s Training Plan is still focused on addressing the needs as identified in the 2015 Skills Audit.

Employment equity and diversity services

The Employment Equity and Training Committee has quarterly meetings. Furthermore, the Committee has divided into Subcommittees to give more focused attention to the working environment, policies and procedures, bursaries and communication. The organisation trained all its managers in disability sensitisation during this reporting period.

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Strategic concern Impact

Policy and planning During the reporting period, SAHRA approved three newly-developed policies, namely the Internship and Learnership Policy, the Strike Contingency Plan and the Onboarding and Probation Policy. In addition, SAHRA reviewed its Bursary Policy, its Human Resources Delegations, its Sexual Harassment Policy and its Substance Abuse Policy.

Workforce planning framework and key strategies to attract and recruit a skilled and capable workforce

SAHRA is working directly with higher education institutions to attract professionally qualified heritage professionals through the CATHSSETA internship programmes. Strict shortlisting criteria, in line with the advertised job requirements, are applied when processing applications and before candidates are invited for interviews.

Employee performance management framework

SAHRA has implemented its performance management framework. Performance agreements have been concluded with all staff and regular performance reviews are being held.

Employee wellness programmes

SAHRA implements regular employee wellness interventions and has an agreement with an employee wellness service provider to provide counselling services to employees when required.

2 . H U M A N R E S O U R C E O V E R S I G H T

S TAT I S T I C S

P E R S O N N E L C O S T BY P R O G R A M M E

ProgrammeTotal

expenditure for the Entity

Personnel expenditure


as a % of total exp.

Number of employees

Average personnel cost per employee

Programme 1 36,018 18,610 52% 34 547

Programme 2 25,668 18,486 72% 38 486

Programme 3 1,034 515 50% 1 515

TOTAL 62,720 37,611 60% 73 515


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P E R S O N N E L C O S T BY S A L A RY B A N D

ProgrammePersonnel

expenditure


as a % of total exp.

Number of employees

Average personnel cost per employee

Senior management 7,541,135 20% 6 1,256,855.91

Professionally qualified 9,736,143 26% 14 695,438.76

Skilled and academically qualified 17,137,373 45% 42 408,032.70

Semi-skilled 2,282,819 6% 6 380,469.80

Unskilled 913,367 3% 5 182,673.49

TOTAL 37,610,838 100% 73 515,216.96

P E R F O R M A N C E R E WA R D S

ProgrammePerformance

rewardsPersonnel

expenditure

% of performance

rewards to total personnel cost

Senior Management 32,647.50 7,541,135 0.43%

Professionally qualified 112,518.96 9,736,143 1.16%

Skilled 334,399.92 17,137,373 1.95%

Semi-skilled 60,060.00 2,282,819 2.63%

Unskilled 60,060.00 913,367 6.58%

TOTAL 599,686.38 37,610,838 1.59%

T R A I N I N G C O S T S

Salary bandPersonnel

expenditure Training

expenditure

Training expenditure

as a % of personnel costs

Number of employees

trained

Number of employees

Programme 1 18,610,010 134,563.40 0.7% 39 3,450.34

Programme 2 18,485,968 103,510.31 0.6% 30 3,450.34

Programme 3 514,860 3,450.34 0.7% 1 3,450.34

GRAND TOTAL 37,610,838 241,524.05 0.6% 70 3,450.34

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E M P L OY M E N T A N D VAC A N C I E S

ProgrammeNumber of employees

Approved posts

Vacancies% of

vacancies

Programme 1 34 46 12 26%

Programme 2 38 42 4 10%

Programme 3 1 2 1 50%

GRAND TOTAL 73 90 17 19%

R E A S O N S F O R S TA F F L E AV I N G

Reasons Number of employees% of total number of staff

leaving

Death 0 0%

Resignation 8 10%

Dismissal 1 1%

Retirement 1 1%

Ill health 0 0%

Expiry of contract 3 4%

Other 0 0%

GRAND TOTAL 13 16%

L A B O U R R E L AT I O N S : M I S C O N D U C T A N D

D I S C I P L I N A RY AC T I O N

Nature of disciplinary action Number

Counselling 0

Verbal warning 0

Written warning 0

Final written warning 0

Dismissal 1

TOTAL 1


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E M P L OY M E N T E Q U I T Y S TAT U S

EE Level

South African South African

total

Foreign national Foreign

national total

Grand totalM F M F

A C W A C I W A W

Senior management 2 0 0 3 0 0 1 6 0 0 0 6

Professionally qualified 3 0 1 5 4 0 1 14 0 0 0 14

Skilled and academically qualified

9 2 3 19 0 0 6 39 1 2 3 42

Semi-skilled 2 3 0 0 0 1 0 6 0 0 0 6

Unskilled 0 1 0 3 1 0 0 5 0 0 0 5

Disabled employees

Skilled and academically qualified

1 1 1

Disabled total 1 1 1

Grand total 16 6 4 30 5 1 8 70 1 2 3 73Note: Grand total excludes disabled employee numbers

S o u t h A f r i c a n A s t r o n o m i c a l O b s e r v a t o r y

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F I N A N C I A L I N F O R M A T I O N

P A R T

A N N UA L R E P O R T 2 0 1 8 / 1 9

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G E N E R A L I N F O R M AT I O N

Country of incorporation and domicile South Africa

Nature of business and principal activities Identify, develop, conserve, protect, promote and manage the national heritage estate of South Africa.

Accounting Authority Bouillon, S (Prof)

Bredekamp, H C (Prof)

Makhweyane, M T

Gani, R

Guma, P M (Dr)

Houston, G (Dr)

Lithole, K D

Kgokolo, T

Malgas, L (Adv)

Malan, A (Dr)

Masooa, M E

Saule, N (Prof)

Sharfman, J (Dr)

Semane, T

Business address 111 Harrington Street

Cape Town

8001

Postal address P.O. Box 4637

Cape Town

8000

Bankers ABSA Bank Limited

South African Reserve Bank

Nedbank Limited

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R E P O R T O F T H E AU D I T O R -

G E N E R A L

T O PA R L I A M E N T O N S O U T H A F R I C A H E R I TAG E

R E S O U R C E S AG E N C Y

R E P O R T O N T H E AU D I T

O F T H E F I N A N C I A L

S TAT E M E N T S

O P I N I O N1. I have audited the financial statements of the South

African Heritage Resources Agency set out on pages 1 to 66, which comprise of the statement of financial position as at 31 March 2019, the statement of financial performance, statement of changes in net assets, cash flow statement and the statement of comparison of budget and actual amounts for the year then ended, as well as the 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, financial position of the South African Heritage Resources Agency as at 31 March 2019, and its financial performance and cash flows for the year then ended in accordance with the South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA).

C O N T E X T F O R T H E O P I N I O N3. 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 this auditor’s report.

4. I am independent of the trading entity in accordance with sections 290 and 291 of the International Ethics Standards Board for Accountants’ Code of ethics for professional accountants and parts 1 and 3 of the International Ethics Standards Board for Accountants’ International code of ethics for professional accountants (including International Independence Standards) (IESBA codes) as well

as the 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 codes.

5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

E M P H A S I S O F M AT T E R6. I draw attention to the matter below. My opinion is

not modified in respect of this matter.

R E S TAT E M E N T O F C O R R E S P O N D I N G F I G U R E S7. As disclosed in note 27 to the financial statements,

the corresponding figures for 31 March 2018 were restated as a result of an error in the financial statements of the entity at, and for the year ended, 31 March 2019.

R E S P O N S I B I L I T I E S O F T H E A C C O U N T I N G A U T H O R I T Y F O R T H E F I N A N C I A L S TAT E M E N T S8. The accounting authority is responsible for the

preparation and fair presentation of the financial statements in accordance with SA Standards of 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.

9. 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.


7 7

A U D I T O R - G E N E R A L’ S R E S P O N S I B I L I T I E S F O R T H E A U D I T O F T H E F I N A N C I A L S TAT E M E N T S10. My objectives are to obtain reasonable assurance

about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

11. A further description of my responsibilities for the audit of the financial statements is included in the annexure to this auditor’s report.

R E P O R T O N T H E

AU D I T O F T H E A N N UA L

P E R F O R M A N C E R E P O R T

I N T R O D U C T I O N A N D S C O P E12. In accordance with the Public Audit Act of South

Africa, 2004 (Act No. 25 of 2004) (PAA) and the general notice issued in terms thereof, I have a responsibility to report material findings on the reported performance information against predetermined objectives for selected objectives presented in the annual performance report. I performed procedures to identify findings but not to gather evidence to express assurance.

13. My procedures address the reported performance information, which must be based on the approved performance planning documents of the entity. I have not evaluated the completeness and appropriateness of the performance indicators included in the planning documents. My procedures also did not extend to any disclosures or assertions relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information. Accordingly, my findings do not extend to these matters.

14. I evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework, as defined in the general notice, for the following selected programmes presented in the annual performance report of the entity for the year ended 31 March 2019:

ProgrammesPages in the annual performance report

Programme 2 – business development

34 – 37

Programme 3 – public engagement

38 – 39

15. I performed procedures to determine whether the reported performance information was properly presented and whether performance was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.

16. I did not raise any material findings on the usefulness and reliability of the reported performance information for these programmes.

O T H E R M AT T E R17. I draw attention to the matter below.

A C H I E V E M E N T O F P L A N N E D TA R G E T S18. Refer to the annual performance report on 35 to

39; 41 to 44 for information on the achievement of planned targets for the year and explanations provided for the under-/overachievement of targets.

R E P O R T O N T H E AU D I T

O F C O M P L I A N C E W I T H

L E G I S L AT I O N

I N T R O D U C T I O N A N D S C O P E19. In accordance with the PAA and the general notice

issued in terms thereof, I have a responsibility to report material findings on the compliance of the

A N N UA L R E P O R T 2 0 1 8 / 1 9

7 8

entity with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance.

20. I did not raise material findings on compliance with the specific matters in key legislation set out in the general notice issued in terms of the PAA

O T H E R I N F O R M AT I O N

21. The accounting authority is responsible for the other information. The other information comprises the information included in the annual report. The other information does not include the financial statements, the auditor’s report and those selected programmes presented in the annual performance report that have been specifically reported in this auditor’s report.

22. My opinion on the financial statements and findings on the reported performance information and compliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.

23. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected programmes presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

24. I did not receive the other information prior to the date of this auditor’s report. When I do receive and read this information, and if I conclude that there is a material misstatement therein, I am required to communicate the matter to those charged with governance and request that the other information be corrected. If the other information is not corrected, I may have to retract this auditor’s report and re-issue an amended report as appropriate. However, if it is corrected this will not be necessary.

I N T E R N A L C O N T R O L

D E F I C I E N C I E S

25. I considered internal control relevant to my audit of the financial statements, reported performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance on it. I did not identify any significant deficiencies in internal control.

O T H E R R E P O R T S

26. I draw attention to the following engagements conducted by various parties that had, or could have, an impact on the matters reported in the entity’s financial statements, reported performance information, compliance with applicable legislation and other related matters. These reports did not form part of my opinion on the financial statements or my findings on the reported performance information or compliance with legislation.

27. An independent consultant was used to investigative an allegation of possible misappropriation of the SAHRA’s assets through procurement processes at the request of the Department of Arts and Culture, which covered the financial periods 2015-16 to 2016-17. The investigation concluded on 31 October 2018 and resulted in disciplinary steps being taken against the former CEO.

Auditor General Cape Town31 July 2019


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A N N E X U R E – AU D I T O R - G E N E R A L’ S

R E S P O N S I B I L I T Y F O R T H E AU D I T

1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional scepticism throughout my audit of the financial statements, and the procedures performed on reported performance information for selected objectives and on the entity’s compliance with respect to the selected subject matters.

F I N A N C I A L S TAT E M E N T S2. In addition to my responsibility for the audit of the

financial statements as described in this auditor’s report, I also: • identify and assess the risks of material

misstatement of the financial statements whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control

• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the [board of directors, which constitutes the accounting authority

• conclude on the appropriateness of the accounting authority’s use of the going concern basis of accounting in the

preparation of the financial statements. I also conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the South African Heritage Resources Agency’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate, to modify the opinion on the financial statements. My conclusions are based on the information available to me at the date of this auditor’s report. However, future events or conditions may cause an entity to cease continuing as a going concern

• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation

C O M M U N I C AT I O N W I T H T H O S E C H A R G E D W I T H G O V E R N A N C E3. I communicate with the accounting authority

regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

4. I also confirm to the accounting authority that I have complied with relevant ethical requirements regarding independence, and communicate all relationships and other matters that may reasonably be thought to have a bearing on my independence and, where applicable, related safeguards.

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AC C O U N T I N G AU T H O R I T Y ' S

R E S P O N S I B I L I T I E S A N D A P P R O VA L

The Accounting Authority is required by the Public Finance Management Act (Act 1 of 1999) to maintain adequate accounting records and is responsible for the content and integrity of the financial statements and related financial information included in this report. It is the responsibility of the Accounting Authority to ensure that the financial statements fairly present the state of affairs of the entity as at the end of the financial year and the results of its operations and cash flows for the period then ended. The external auditors are engaged to express an independent opinion on the financial statements and were given unrestricted access to all financial records and related data.

The financial statements have been prepared in accordance with Standards of Generally Recognised Accounting Practice (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board.

The financial statements are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgements and estimates.

The Accounting Authority acknowledges that it is ultimately responsible for the system of internal financial controls established by the entity and places considerable importance on maintaining a strong control environment. To enable the Accounting Authority to meet these responsibilities, the Accounting Authority sets standards for internal control aimed at reducing the risk of error or deficit in a cost effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the entity and all employees are required to maintain the highest ethical standards in ensuring the entity’s business is conducted in a manner that in all reasonable

circumstances is above reproach. The focus of risk management in the entity is on identifying, assessing, managing and monitoring all known forms of risk across the entity. While operating risk cannot be fully eliminated, the entity endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints.

The Accounting Authority is of the opinion, based on the information and explanations given by management that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or deficit.

The Accounting Authority has reviewed the entity’s cash flow forecast for the year to 31 March 2020 and, in the light of this review and the current financial position, has every reason to believe that SAHRA will be a going concern in the year ahead and has continued to adopt the going concern basis in preparing the financial statements.

The Accounting Authority is primarily responsible for the financial affairs of the entity.

The financial statements set out on pages 82 – 149, which have been prepared on the going concern basis, were approved by the Accounting Authority on 31 March 2019 and were signed on its behalf by:

Bouillon, S (Prof)Chairperson of Council


8 1

AC C O U N T I N G AU T H O R I T Y ' S

R E P O R T

The members of the Accounting Authority submit their report for the year ended 30 September 2018

1 . R E V I E W O F

AC T I V I T I E S

1.1 Main business and operations

SAHRA is established in terms of Section 11 of the National Heritage Resources Act No.25 of 1999 (NHRA). The Act outlines an integrated interactive system for the management of the national heritage resources of South Africa.

There is a three tier system for heritage resources management, in which national level functions are the responsibility of SAHRA, provincial level functions are the responsibility of Provincial Heritage Resources Authorities and local level functions are the responsibility of local authorities.

As the implementing Agency of the Department of Arts and Culture, SAHRA plays a critical role in the identification, conservation, protection and promotion of our heritage resources for the present and future generations. Heritage resources are formally protected through a notice in the Government Gazette.

Our business and operations includes amongst other things to promote and encourage public understanding and enjoyment of the national estate and public interest and involvement in the identification, assessment, recording and management of heritage resources; promote education and training in fields related to the management of the national estate.

Oversight on the business is provided through a Council which is appointed by the Minister. The Council is constituted by representatives from Provincial Heritage Resources Authorities in the nine Provinces and 6 other members appointed by the Minister.

2 . G O I N G C O N C E R N

We draw attention to the fact that at 31 March 2019, the entity had an accumulated surplus of R 82 735 331 and a positive total net assets value of R 108 265 935.

The 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 ability of the entity to continue as a going concern is dependent on a number of factors. The most significant of these is that the Accounting Authority continue to procure funding for the ongoing operations for the entity and that the subordination agreement referred to in note 15 of these financial statements will remain in force for so long as it takes to restore the solvency of the entity.

3 . S U B S E Q U E N T E V E N T S

The Accounting Authority has become aware of circumstances arising since the end of the financial year that requires disclosure in the financial statements referred to in note 35 of these financial statements.

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8 2

S t a t e m e n t o f F i n a n c i a l P o s i t i o n

a s a t 3 1 M a r c h 2 0 1 9

2019 2018Figures in Rand Note(s) Restated*

AssetsCurrent AssetsOperating lease asset 9 853 367 864 275Receivables from exchange transactions 3 310 920 953 627Receivables from non-exchange transactions 3 - 3 000 000Cash and cash equivalents 4 47 598 120 35 649 791

48 762 407 40 467 693

Non-Current AssetsInvestment property 5 23 168 055 23 283 605Property, plant and equipment 6 20 458 084 20 725 607Intangible assets 8 811 950 524 836Heritage assets 7 12 063 655 12 063 655Receivables from exchange transactions 3 163 071 -Operating lease asset 9 20 912 702 20 037 518

77 577 517 76 635 221Total Assets 126 339 924 117 102 914

LiabilitiesCurrent LiabilitiesOperating lease liability 9 32 647 34 383Payables from exchange transactions 10 5 559 939 4 427 866Employee medical benefit obligation 12 187 820 169 912Unspent conditional grants and receipts 13 5 706 567 5 751 825

11 486 973 10 383 986

Non-Current LiabilitiesOther financial liabilities 11 2 863 956 2 861 695Operating lease liability 9 65 899 -Employee medical benefit obligation 12 3 657 161 3 914 961

6 587 016 6 776 656Total Liabilities 18 073 989 17 160 642Net Assets 108 265 935 99 942 272

ReservesRevaluation reserve 34 25 530 604 25 530 604Accumulated surplus 82 735 331 74 411 668Total Net Assets 108 265 935 99 942 272


8 3

S t a t e m e n t o f F i n a n c i a l P e r f o r m a n c e

a s a t 3 1 M a r c h 2 0 1 9

2019 2018

Figures in Rand Note(s) Restated*

Revenue

Revenue from exchange transactions

Permit fees 27 923 32 200

Rental income 1 918 568 1 987 760

Other income 16 195 328 93 832

Interest received - investment 21 2 706 544 2 147 326

Total revenue from exchange transactions 4 848 363 4 261 118

Revenue from non-exchange transactions

Transfer revenue

Government grants and subsidies 15 65 650 000 58 861 000

Public contributions and donations 14 - 721 330

Other grants 14 71 659 -

Total revenue from non-exchange transactions 65 721 659 59 582 330

Total revenue 14 70 570 022 63 843 448

Expenditure

Salaries and benefits 20 (39 436 594) (36 683 643)

Depreciation and amortization (1 356 634) (1 787 252)

Impairment loss (1 779) (20 336)

Finance costs 18 (4 204) (220 811)

Bad debts expense 17 (703 357) (370 110)

Repairs and Maintenance (393 306) (690 958)

General expenses 19 (20 824 421) (20 523 192)

Total expenditure (62 720 295) (60 296 302)

Operating surplus 7 849 727 3 547 146

Actuarial gains 473 936 1 380 819

Gain from disposal of assets - 64 316

Surplus for the year 8 323 663 4 992 281

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8 4

S t a t e m e n t o f C h a n g e s i n N e t A s s e t s

a s a t 3 1 M a r c h 2 0 1 9

Figures in RandRevaluation

reserveAccumulated

surplusTotal net

assets

Balance at 01 April 2017 25 530 604 69 419 388 94 949 992

Changes in net assets

Correction of errors - 818 594 818 594

Net income recognised directly in net assets - 818 594 818 594

Surplus for the year - 4 173 686 4 173 686

Total recognised income and expenses for the year - 4 992 280 4 992 280

Total changes - 4 992 280 4 992 280

Restated* Balance at 01 April 2018 25 530 604 74 411 668 99 942 272

Changes in net assets

Surplus for the year - 8 323 663 8 323 663

Total changes - 8 323 663 8 323 663

Balance at 31 March 2019 25 530 604 82 735 331 108 265 935

Note(s) 34


8 5

C a s h F l o w S t a t e m e n t

a s a t 3 1 M a r c h 2 0 1 9

2019 2018

Figures in Rand Note(s) Restated*

Cash flows from operating activities

Receipts

Grants 68 721 660 57 861 000

Interest income 2 706 544 2 147 326

Other cash receipts 1 757 179 1 171 103

73 185 383 61 179 429

Payments

Employee costs (37 748 827) (36 168 483)

Suppliers (22 223 827) (22 394 412)

Finance costs (4 204) (220 811)

(59 976 858) (58 783 706)

Net cash flows from operating activities 23 13 208 525 2 395 723

Cash flows from investing activities

Purchase of property, plant and equipment 6 (931 360) (700 971)

Purchase of intangible assets 8 (331 097) -

Net cash flows from investing activities (1 262 457) (700 971)

Cash flows from financing activities

Net movement on other financial liabilities 2 261 6 045

Net cash flows from financing activities 2 261 6 045

Net increase in cash and cash equivalents 11 948 329 1 700 797

Cash and cash equivalents at the beginning of the year 35 649 791 33 948 995

Cash and cash equivalents at the end of the year 4 47 598 120 35 649 792

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S t a t e m e n t o f C o m p a r i s o n o f B u d g e t a n d A c t u a l

A m o u n t s a s a t 3 1 M a r c h 2 0 1 9

Budget on Accrual Basis

Figures in RandApproved

budget AdjustmentsFinal

Budget

Actual amounts on comparable

basis

Difference between final

budget and actual Reference

Statement of Financial Performance

Revenue

Revenue from exchange transactions

Permit Fees 50 000 - 50 000 27 923 (22 077) 33.1.1

Rental of facilities and equipment

2 720 000 - 2 720 000 1 918 568 (801 432) 33.1.2

Other Income - 3 000 000 3 000 000 195 328 (2 804 672) 33.1.3 &33.2.1

Rental Lease straightlining - - - - -

Interest received - investment 300 000 1 152 000 1 452 000 2 706 544 1 254 544 33.1.4 & 33.2.2

Total revenue from exchange transactions 3 070 000 4 152 000 7 222 000 4 848 363 (2 373 637)

Revenue from non-exchange transactions

Deferred revenue 4 000 000 16 000 000 20 000 000 - (20 000 000) 33.1.5 & 33.2.3

Transfer revenue

Government grants & subsidies 55 650 000 - 55 650 000 65 650 000 10 000 000 33.1.6

Other grant revenue - - - 71 659 71 659

Total revenue from non-exchange transactions 59 650 000 16 000 000 75 650 000 65 721 659 (9 928 341)

Total revenue 62 720 000 20 152 000 82 872 000 70 570 022 (12 301 978)

Expenditure

Personnel (42 081 601) (1 333 000) (43 414 601) (39 436 594) 3 978 007 33.1.7 & 33.2.4

Depreciation and amortisation (2 689 251) (2 058 000) (4 747 251) (1 400 701) 3 346 550 33.1.8 & 33.2.5

- - - - -

Provision for Bad Debt expense (114 444) - (114 444) (703 357) (588 913) 33.1.9

Finance costs - - - (4 204) (4 204) 33.1.10

Repairs and maintenance - - - (393 306) (393 306) 33.1.11

General expenses (17 834 704) (16 761 000) (34 595 704) (20 782 133) 13 813 571 33.1.12 & 33.2.6

Total expenditure (62 720 000) (20 152 000) (82 872 000) (62 720 295) 20 151 705

Operating Surplus - - - 7 849 727 7 849 727

Actuarial gains - - - 473 936 (473 936) 32.1.1

Surplus for the year - - - 8 323 663 8 323 663


8 7

Budget on Accrual Basis

Figures in RandApproved

budget AdjustmentsFinal

Budget

Actual amounts on comparable

basis

Difference between final

budget and actual Reference

Cash Flow Statement

Cash flows from operating activities

Receipts

Grants 55 650 000 - 55 650 000 68 721 660 13 071 660 33.3.1

Interest income 300 000 - 300 000 2 706 544 2 406 544 33.3.2

Deferred revenue 4 955 000 - 4 955 000 - (4 955 000) 33.3.3

Other cash receipts 1 815 000 - 1 815 000 1 757 179 (57 821) 33.3.4

62 720 000 - 62 720 000 73 185 383 10 465 383

Payments

Employee costs (42 082 000) (228 000) (42 310 000) (37 748 827) 4 561 173 33.3.5

Suppliers (17 597 000) (27 800 000) (45 397 000) (22 223 827) 23 173 173 33.3.6

Finance costs - - - (4 204) (4 204) 33.3.7

(59 679 000) (28 028 000) (87 707 000) (59 976 858) 27 730 142

Net cash flows from operating activities 3 041 000 (28 028 000) (24 987 000) 13 208 525 38 195 525

Cash flows from investing activities

Purchase of property, plant and equipment (1 090 000) - (1 090 000) (931 360) 158 640 33.3.8

Purchase of other intangible assets - - - (331 097) (331 097) 33.3.9

Net cash flows from investing activities (1 090 000) - (1 090 000) (1 262 457) (172 457)

Cash flows from financing activities

Deferred income - - - 2 261 2 261 33.3.8

Net increase/(decrease) in cash and cash equivalents 1 951 000 (28 028 000) (26 077 000) 11 948 329 38 025 329

Cash and cash equivalents at the beginning of the year 35 649 791 - 35 649 791 35 649 791 -

Cash and cash equivalents at the end of the year 37 600 791 (28 028 000) 9 572 791 47 598 120 38 025 329

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A c c o u n t i n g P o l i c i e s

1 . P R E S E N TAT I O N O F F I N A N C I A L S TAT E M E N T S

The financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP), issued by the Accounting Standards Board in accordance with Section 91(1) of the Public Finance Management Act (Act 1 of 1999).

These financial statements have been prepared on an accrual basis of accounting and are in accordance with historical cost convention as the basis of measurement, unless specified otherwise.

All monetary information and figures presented in these financial statements are stated in South African Rand rounding to the nearest rand

Assets, liabilities, revenues and expenses were not offset, except where offsetting is either required or permitted by a Standard of GRAP.

A summary of the significant accounting policies, which have been consistently applied in the preparation of these financial statements, are disclosed below.

1.1 Significantjudgementsandsources of estimation uncertainty

In preparing the financial statements, management is required to make estimates and assumptions that affect the amounts represented in the financial statements and related disclosures. Use of available information and the application of judgement are inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the financial statements. Significant judgements include:

Trade receivables

The entity assesses its trade receivables for impairment at the end of each reporting period. In determining whether an impairment loss should be recorded in surplus or deficit, the entity makes judgements as to whether there

is observable data indicating a measurable decrease in the estimated future cash flows from a financial asset.

The impairment for trade receivables is calculated first on individually significant debtors and then apply a portfolio approach to the remaining debtors, based on historical loss ratios, adjusted for national and industry-specific economic conditions and other indicators present at the reporting date that correlate with defaults on the portfolio. These annual loss ratios are applied to balances in the portfolio.

Impairment testing

The entity reviews and tests the carrying value of assets when events or changes in circumstances suggest that the carrying amount may not be recoverable. Assets are grouped at the lowest level for which identifiable cash flows are largely independent of cash flows of other assets and liabilities. If there are indications that impairment may have occurred, estimates are prepared of expected future cash flows for each group of assets. Expected future cash flows used to determine the value in use of tangible assets are inherently uncertain and could materially change over time. They are significantly affected by a number of factors such as inflation and interest.

Provisions

Provisions were raised and management determined an estimate based on the information available.

Useful lives of property, plant and equipment and other assets

The entity's management determines the estimated useful lives and related depreciation / amortisation charges for property, plant and equipment and other assets. This estimate is based on the pattern in which an asset's future economic benefits or service potential are expected to be consumed by the entity.

Management assumes that website has an indefinite useful life.


8 9

Post retirement benefits

The present value of the post retirement obligation depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) include the discount rate. Any changes in these assumptions will impact on the carrying amount of post retirement obligations.

The entity determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to determine the present value of estimated future cash outflows expected to be required to settle the pension obligations. The most appropriate discount rate that reflects the time value of money is with reference to market yields at the reporting date on government bonds. Where there is no deep market in government bonds with a sufficiently long maturity to match the estimated maturity of all the benefit payments, the entity uses current market rates of the appropriate term to discount shorter term payments, and estimates the discount rate for longer maturities by extrapolating current market rates along the yield curve.

Effective interest rate

The entity used the prime interest rate to discount future cash flows.

Allowance for doubtful debts

On receivables, an impairment loss is recognised in surplus and deficit when there is objective evidence that it is impaired. The impairment is measured as the difference between the receivables' carrying amount and the present value of estimated future cash flows discounted at the effective interest rate, computed at initial recognition.

Finance lease or operating lease

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

1.2 Investment property

Investment property is property comprises of land and building held to earn rentals or for capital appreciation or both, rather than for:

• use in the production or supply of goods or services; or

• administrative purposes; or• sale in the ordinary course of operations.

Investment property is recognised as an asset when, it is probable that the future economic benefits or service potential that are associated with the investment property will flow to the entity, and the cost or fair value of the investment property can be measured reliably.

Investment property is initially recognised at cost. Transaction costs are included in the initial measurement.

Where investment property is acquired at no cost or for a nominal cost, its cost is its fair value as at the date of acquisition. The residual value is assumed to be zero.

Costs include costs incurred initially and costs incurred subsequently to add to, or to replace a part of, or service a property. If a replacement part is recognised in the carrying amount of the investment property, the carrying amount of the replaced part is derecognised.

Cost model

Subsequent to initial measurement investment property is carried at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is provided to write down the cost, less estimated residual value by equal instalments over the useful life of the property, which is as follows:

Item Useful life

Property - land indefinite

Property - buildings 75 years

As per the National Heritage Resources Act, No. 25 of 1999, Chapter 1 section 3(1): "For the purposes of this

A N N UA L R E P O R T 2 0 1 8 / 1 9

9 0

Act, those heritage resources of South Africa which are of cultural significance or other special value for the present community and for future generations must be considered part of the national estate and fall within the sphere of operations of heritage resources authorities."

Chapter 1 section 5(1)(a): "Heritage resources have lasting value in their own right and provide evidence of the origins of South African society and as they are valuable, finite, non-renewable and irreplaceable they must be carefully managed to ensure their survival."

The investment properties are of cultural significance and special value for the present community and for future generations, these properties are considered part of the national estate and will therefore be preserved for current and future generations. These assets are hold property to earn rental.

Investment property is derecognised on disposal or when the investment property is permanently withdrawn from use and no future economic benefits or service potential are expected from its disposal.

The gain or loss arising from the derecognition of investment property is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the investment property. Such difference is recognised in surplus or deficit when the investment property is derecognised.

Compensation from third parties for investment property that was impaired, lost or given up is recognised in surplus or deficit when the compensation becomes receivable.

1.3 Property, plant and equipment

Property, plant and equipment are tangible non-current assets (including infrastructure assets) that are held for use in the production or supply of goods or services, rental to others, or for administrative purposes, and are expected to be used during more than one period.

The cost of an item of property, plant and equipment is recognised as an asset when:

• it is probable that future economic benefits or service potential associated with the item will flow to the entity; and

• the cost of the item can be measured reliably.

Property, plant and equipment are initially measured at cost.

The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts and rebates are deducted in arriving at the cost.

Where an asset is acquired through a non-exchange transaction, its cost is its fair value as at date of acquisition.

Where an item of property, plant and equipment is acquired in exchange for a non-monetary asset or monetary assets, or a combination of monetary and non-monetary assets, the asset acquired is initially measured at fair value (the cost). If the acquired item's fair value was not determinable, it's deemed cost is the carrying amount of the asset(s) given up.

When significant components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, replace part of, or service it. If a replacement cost is recognised in the carrying amount of an item of property, plant and equipment, the carrying amount of the replaced part is derecognised.

Recognition of costs in the carrying amount of an item of property, plant and equipment ceases when the item is in the location and condition necessary for it to be capable of operating in the manner intended by management

Items such as spare parts, standby equipment and servicing equipment are recognised when they meet the definition of property, plant and equipment.


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Major inspection costs which are a condition of continuing use of an item of property, plant and equipment and which meet the recognition criteria above are included as a replacement in the cost of the item of property, plant and equipment. Any remaining inspection costs from the previous inspection are derecognised.

Property, plant and equipment is carried at cost less accumulated depreciation and any impairment losses except for Land which is carried at revalued amount being the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

Revaluations are made with sufficient regularity such that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period.

When an item of property, plant and equipment is revalued, any accumulated depreciation at the date of the revaluation is eliminated against the gross carrying

amount of the asset and the net amount restated to the revalued amount of the asset.

Any increase in an asset’s carrying amount, as a result of a revaluation, is credited directly to a revaluation surplus. The increase is recognised in surplus or deficit to the extent that it reverses a revaluation decrease of the same asset previously recognised in surplus or deficit.

Any decrease in an asset’s carrying amount, as a result of a revaluation, is recognised in surplus or deficit in the current period. The decrease is debited directly to a revaluation surplus to the extent of any credit balance existing in the revaluation surplus in respect of that asset.

Property, plant and equipment are depreciated on the straight line basis over their expected useful lives to their estimated residual value.

The useful lives of items of property, plant and equipment have been assessed as follows:

Item Depreciation method Average useful life

Land Indefinite

Buildings Straight line 75 years

Plant and machinery Straight line 5-15 years

Furniture and fixtures Straight line 5-15 years

Motor vehicles Straight line 5-10 years

IT equipment Straight line 3-17 years

Leasehold improvements Straight line 3 years

Vessels-Deck equipment,rib,winches,cranes and anchors Straight line 12 years

Vessels-Propulsion system,engine,gearbox and propellers Straight line 20 years

Vessels-Research and patrol hull Straight line 20 years

Library books Straight line 10 years

The residual value, and the useful life and depreciation method of each asset are reviewed at the end of each reporting date. If the expectations differ from previous estimates, the change is accounted for as a change in accounting estimate.

Reviewing the useful life of an asset on an annual basis does not require the entity to amend the previous estimate unless expectations differ from the previous estimates.

Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.

The depreciation charge for each period is recognised in surplus or deficit unless it is included in the carrying amount of another asset.

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Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economic benefits or service potential expected from the use of the asset.

The gain or loss arising from the derecognition of an item of property, plant and equipment is included in surplus or deficit when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.

1.4 Intangible assets

An intangible asset is an identifiable non-monetary asset without physical substance.

An asset is identifiable if it either:

• is separable, i.e. is capable of being separated or divided from an entity and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract, identifiable assets or liability, regardless of whether the entity intends to do so; or

• arises from binding arrangements (including rights from contracts), regardless of whether those rights are transferable or separable from the entity or from other rights and obligations.

A binding arrangement describes an arrangement that confers similar rights and obligations on the parties to it as if it were in the form of a contract.

An intangible asset is recognised when:

• it is probable that the expected future economic benefits or service potential that are attributable to the asset will flow to the entity; and

• the cost or fair value of the asset can be measured reliably.

The entity assesses the probability of expected future economic benefits or service potential using reasonable and supportable assumptions that represent management’s best estimate of the set of economic conditions that will exist over the useful life of the asset.

Where an intangible asset is acquired through a non-exchange transaction, its initial cost at the date of acquisition is measured at its fair value as at that date.

Expenditure on research (or on the research phase of an internal project) is recognised as an expense when it is incurred.

Intangible assets are carried at cost less any accumulated amortisation and any impairment losses.

An intangible asset is regarded as having an indefinite useful life when, based on all relevant factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows or service potential. Amortisation is not provided for these intangible assets, but they are tested for impairment annually and whenever there is an indication that the asset may be impaired. For all other intangible assets amortisation is provided on a straight line basis over their useful life.

The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date

Reassessing the useful life of an intangible asset with a finite useful life after it was classified as indefinite is an indicator that the asset may be impaired. As a result the asset is tested for impairment and the remaining carrying amount is amortised over its useful life.

The residual value of an intangible asset with a finite useful life shall be assumed to be zero unless:

(a) there is a commitment by a third party to acquire the asset at the end of Issued its useful life; or

(b) there is an active market for the asset and:(i) residual value can be determined by reference to

that market; and(ii) it is probable that such a market will exist at the

end of the asset’s useful life.Internally generated brands, mastheads, publishing titles, customer lists and items similar in substance are not recognised as intangible assets.

Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values as follows:


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Item Useful life

Computer software, other 2-10years

Website indefinite

Intangible assets are derecognised:

• On disposal; or• When no future economic benefits or service potential

are expected from its use or disposal.

The gain or loss from the derecognition of an intangible asset is determined as the difference between the net proceeds, if any, and the carrying amount of the intangible asset. Such difference is recognised in surplus or deficit when the intangible asset is derecognised

1.5 Heritage assets

The principal issues in accounting for heritage assets are the recognition of the assets. The National Heritage Resource Act 25, of 1999 describes Heritage Assets as follows: “Heritage assets are assets that have a cultural, environmental, historical, natural, scientific, technological or artistic significance and are held indefinitely for the benefit of present and future generations.” The National Heritage Resource Act 25, of 1999 state the following regarding the national estate:

(1) For the purposes of this Act, those heritage resources of South Africa which are of cultural significance or other special value for the present community and for future generations must be considered part of the national estate and fall within the sphere of operations of heritage resources authorities.

(2) Without limiting the generality of subsection (1) the national estate may include but not limited to:(a) places, buildings, structures and equipment,

books, records, documents of cultural significance;

SAHRA has adopted the following criteria in accessioning heritage assets:

(i) an item is important in the course, or pattern, of cultural or natural history;

(ii) an item has strong or special association with the life or works of a person, or group of persons, of importance in cultural or natural history;

(iii) an item is important in demonstrating aesthetic characteristics and/or a high degree of creative or technical achievement;

(iv) an item has strong or special association with a particular community or cultural group for social, cultural or spiritual reasons;

(v) an item has potential to yield information that will contribute to an understanding of cultural or natural history

(vi) an item possesses uncommon, rare or endangered aspects of cultural or natural history;

(vii) an item is important in demonstrating the principal characteristics of a class of cultural or natural places; or cultural or natural environments.

Classification of Heritage Assets

Assets valued have been categorised under the following headings:

a) Arts and Artifacts including Objects and Artworkb) Library Books Heritagec) Building and Monuments

If library books meet the definition of heritage assets, they are accounted for in accordance with GRAP 103 on Heritage assets. Examples of such items include:

i) The books are scarce copies from various sources and limited copies are available.

ii) No publishers are willing to reproduce these booksiii) The books will only be available for research purposes. iv) The general public will not be allowed to take them

out; they can only be viewed in the library.v) The books will be held for an indefinite period, unless

destroyed by circumstances beyond human control.

Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire an asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset

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when initially recognised in accordance with the specific requirements of other Standards of GRAP.

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

Heritage assets are assets that have a cultural, environmental, historical, natural, scientific, technological or artistic significance and are held indefinitely for the benefit of present and future generations.

Recognition

The entity recognises a heritage asset as an asset if it is probable that future economic benefits or service potential associated with the asset will flow to the entity, and the cost or fair value can be measured reliably.

If the entity holds assets that might be regarded as heritage assets but which, on initial recognition, do not meet the recognition criteria of a heritage asset because it cannot be reliably measured, information on such a heritage asset is disclosed in the notes 7 Heritage assets.

Initial measurement

For the purpose of initial measurement for the adoption of GRAP 103, the fair value of the subject assets has been applied to determine deemed costs in accordance with Directive 7 Application of Deemed Costs. Directive 7 is used to determine the cost of assets that were acquired prior to the measurement date outlined in paragraph .04, and only if information about the historical cost of those assets is not available. Measurement is the date that an entity adopts the Standards of GRAP and is the beginning of the earliest period for which an entity presents full comparative information, in its first financial statements prepared using Standards of GRAP.

Dual purpose assets (used for service delivery and preserved and defined as a heritage asset) can only be classified as a heritage asset when a significant portion of the asset meets the definition of a heritage asset

Valuation of heritage assets and library books

The method of valuation employed was the fair value approach. Fair value measurement is defined as, the fair value of the assets herein described if exposed for sale in a second-hand market, allowing a reasonable period to find a purchaser who is well informed and buys with full knowledge of the collection in their current state. The fair value was ascertained by reference to quoted prices in an active and liquid market. (GRAP 103.43). The sale would be "arm's length" with no undue pressure on purchaser or seller. In determining the value of the library books, influences such as market climate, sensitivity to exchange rate variances, sales history and condition of the asset play an important role, however if the fair value cannot readily be ascertained by reference to quoted prices in an active and liquid market; then plausible value can be applied by an experienced valuation professional.

The fair value of a heritage asset can be determined from market-based evidence arrived at by appraisal. An appraisal of the value of the asset is normally undertaken by a member of the valuation profession, who holds a recognised and relevant professional qualification. GRAP 103 provides the following methods of valuation with regard to the valuation of heritage assets:

a) In the case of specialised heritage buildings and other man-made heritage structures, such as monuments, SAHRA has used the market costs and replacement cost approach to determine fair values.i) An appraisal of the value of the asset is normally

undertaken by a member of the valuation profession, who holds a recognised and relevant professional qualification. The fair value will be ascertained by reference to quoted prices in an active and liquid market (GRAP 103.43).

ii) Where the fair value of an asset cannot be determined, and where no evidence is available to determine the market value in an active market of a heritage asset; a valuation technique may be used to determine its fair value. Valuation techniques include using recent arm’s length market transactions between knowledgeable,


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willing parties, if available, and reference to the current fair value of other heritage assets that have substantially similar characteristics in similar circumstances and locations, adjusted for any specific differences in circumstances. If there is a valuation technique commonly used by market participants to price such an asset, and that technique has been demonstrated to provide reliable estimates of prices obtained in actual market transactions.

Subsequent measurement

After recognition as an asset, a class of heritage assets, whose fair value can be measured reliably, is carried at a revalued amount, being its fair value at the date of the revaluation less any subsequent impairment losses. Revaluations shall be made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.

Heritage assets owned by the entity are revalued every three to five years.

Impairment

The entity assesses at each reporting date whether there is an indication that a heritage asset may be impaired. If any such indication exists, the entity estimates the recoverable amount or the recoverable service amount of the heritage asset.

Useful lives of Heritage Assets have been assessed as follows:

Item Average useful life

Buildings Indefinite

Art and artefacts Indefinite

Library books Indefinite

Derecognition

The entity derecognises heritage asset on disposal, or when no future economic benefits or service potential are expected from its use or disposal.

The gain or loss arising from the derecognition of a heritage asset is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the heritage asset. Such difference is recognised in surplus or deficit when heritage asset is derecognised.

1.6 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or a residual interest of another entity.

The fair value of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured at initial recognition minus principal repayments, minus the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity amount, and minus any reduction (directly or through the use of an allowance account) for impairment or uncollectibility.

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in an arm’s length transaction.

Classification

The entity has the following types of financial assets (classes and category) as reflected on the face of the statement of financial position or in the notes thereto:

Class Category

Receivables from exchange transactions (excluding rental debtors)

Financial asset measured at amortised cost

Receivables from exchange transactions (rental debtors)

Financial asset measured at cost

Cash and cash equivalents

Financial asset measured at amortised cost

The entity has the following types of financial liabilities (classes and category) as reflected on the face of the statement of financial position or in the notes thereto:

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Class Category

Payables from exchange transactions

Financial liability measured at amortised cost

Unspent conditional grant and receipt

Financial liability measured at amortised cost

Other financial liabilities Financial liability measured at amortised cost

Initial recognition

The entity recognises a financial asset or a financial liability in its statement of financial position when the entity becomes a party to the contractual provisions of the instrument.

The entity recognises financial assets using trade date accounting.

Initial measurement of financial assets and financial liabilities

The entity measures a financial asset and financial liability, other than those subsequently measured at fair value, initially at its fair value plus transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability.

The entity measures all other financial assets and financial liabilities initially at its fair value.

Subsequent measurement of financial assets and financial liabilities

The entity measures all financial assets and financial liabilities after initial recognition using the following categories:

• Financial instruments at amortised cost.

All financial assets measured at amortised cost, or cost, are subject to an impairment review.

The amortised cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is measured at initial recognition, minus principal repayments, plus or minus the cumulative amortisation using the effective interest rate method of any difference between that initial amount and the maturity amount, and minus any reduction directly for impairment or uncollectability in the case of a financial asset.

Fair value measurement considerations

Short-term receivables and payables are not discounted where the initial credit period granted or received is consistent with terms used in the public sector, either through established practices or legislation.

Reclassification

The entity does not reclassify a financial instrument while it is issued or held unless it is:

• combined instrument that is required to be measured at fair value; or

• an investment in a residual interest that meets the requirements for reclassification.

Gains and losses

For financial assets and financial liabilities measured at amortised cost or cost, a gain or loss is recognised in surplus or deficit when the financial asset or financial liability is derecognised or impaired, or through the amortisation process.

Impairment and uncollectibility of financial assets

The entity assesses at the end of each reporting period whether there is any objective evidence that a financial asset or group of financial assets is impaired.

For amounts due to the entity, significant financial difficulties of the receivable, probability that the receivable will enter bankruptcy and default of payments are all considered indicators of impairment.

Financial assets measured at amortised cost:


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If there is objective evidence that an impairment loss on financial assets measured at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced directly. The amount of the loss is recognised in surplus or deficit.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed directly. The reversal does not result in a carrying amount of the financial asset that exceeds what the amortised cost would have been had the impairment not been recognised at the date the impairment is reversed. The amount of the reversal is recognised in surplus or deficit.

Where financial assets are impaired through use of an allowance account, the amount of the loss is recognised in surplus or deficit within operating expenses. When such financial assets are written off, the write off is made against the relevant allowance account. Subsequent recoveries of amounts previously written off are credited against operating expenses.

Derecognition

Financial assets

The entity derecognises financial assets using trade date accounting.

The entity derecognises a financial asset only when:

• the contractual rights to the cash flows from the financial asset expire, are settled or waived;

• the entity transfers to another party substantially all of the risks and rewards of ownership of the financial asset or

• the entity, despite having retained some significant risks and rewards of ownership of the financial asset,

has transferred control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party, and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer. In this case, the entity: - derecognises the asset; and - recognises separately any rights and obligations

created or retained in the transfer.

The carrying amount of the transferred asset is allocated between the rights or obligations retained and those transferred on the basis of their relative fair values at the transfer date. Newly created rights and obligations are measured at their fair values at that date. Any differences between the consideration received and the amounts recognised and derecognised is recognised in surplus or deficit in the period of the transfer.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received is recognised in surplus or deficit.

Financial liabilities

The entity removes a financial liability (or a part of a financial liability) from its statement of financial position when it is extinguished - i.e. when the obligation specified in the contract is discharged, cancelled, expires or waived.

An exchange between an existing borrower and lender of debt instruments with substantially different terms is accounted for as having extinguished the original financial liability and a new financial liability is recognised. Similarly, a substantial modification of the terms of an existing financial liability or a part of it is accounted for as having extinguished the original financial liability and having recognised a new financial liability.

The difference between the carrying amount of a financial liability (or part of a financial liability) extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in surplus or deficit. Any liabilities

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that are waived, forgiven or assumed by another entity by way of a non-exchange transaction are accounted for in accordance with the Standard of GRAP on Revenue from Non-exchange Transactions (Taxes and Transfers).

Presentation

Interest relating to a financial instrument or a component that is a financial liability is recognised as revenue or expense in surplus or deficit.

Losses and gains relating to a financial instrument or a component that is a financial liability is recognised as revenue or expense in surplus or deficit.

A financial asset and a financial liability are only offset and the net amount presented in the statement of financial position when the entity currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

In accounting for a transfer of a financial asset that does not qualify for derecognition, the entity does not offset the transferred asset and the associated liability.

1.7 Leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

When a lease includes both land and buildings elements, the entity assesses the classification of each element separately.

Operating leases - lessor

Operating lease revenue is recognised as revenue on a straight-line basis over the lease term. The difference between the amounts recognised as revenue and the contractual receipts are recognised as an operating lease asset or liability.

Initial direct costs incurred in negotiating and arranging operating leases are added to the carrying amount of the leased asset and recognised as an expense over the lease term on the same basis as the lease revenue.

The aggregate cost of incentives is recognised as a reduction of rental revenue over the lease term on a straight-line basis.

Any contingent rents are recognised separately as revenue in the period in which they are received.

Operating leases - lessee

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference between the amounts recognised as an expense and the contractual payments are recognised as an operating lease asset or liability.

The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis over the lease term.

Any contingent rents are recognised separately as an expense in the period in which they are incurred.

1.8 Impairment of cash-generating assets

Cash-generating assets are assets used with the objective of generating a commercial return. Commercial return means that positive cash flows are expected to be significantly higher than the cost of the asset.

Impairment is a loss in the future economic benefits or service potential of an asset, over and above the systematic recognition of the loss of the asset’s future economic benefits or service potential through depreciation (amortisation).

Carrying amount is the amount at which an asset is recognised in the statement of financial position after deducting any accumulated depreciation and accumulated impairment losses thereon.


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A cash-generating unit is the smallest identifiable group of assets used with the objective of generating a commercial return that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets.

Costs of disposal are incremental costs directly attributable to the disposal of an asset, excluding finance costs and income tax expense.

Depreciation (Amortisation) is the systematic allocation of the depreciable amount of an asset over its useful life.

Fair value less costs to sell is the amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal.

Recoverable amount of an asset or a cash-generating unit is the higher its fair value less costs to sell and its value in use.

Useful life is either:

• the period of time over which an asset is expected to be used by the entity; or

• the number of production or similar units expected to be obtained from the asset by the entity.

Judgements made by management in applying the criteria to designate assets as cash-generating assets or non-cash-generating assets, are as follows:

Identification

When the carrying amount of a cash-generating asset exceeds its recoverable amount, it is impaired.

The entity assesses at each reporting date whether there is any indication that a cash-generating asset may be impaired. If any such indication exists, the entity estimates the recoverable amount of the asset.

Irrespective of whether there is any indication of impairment, the entity also tests a cash-generating intangible asset with an indefinite useful life or a cash-generating intangible asset not yet available for use for impairment annually by comparing its carrying amount with its recoverable amount. This impairment test is performed at the same time every year. If an intangible asset was initially recognised during the current reporting period, that intangible asset was tested for impairment before the end of the current reporting period.

Value in use

Value in use of a cash-generating asset is the present value of the estimated future cash flows expected to be derived from the continuing use of an asset and from its disposal at the end of its useful life.

When estimating the value in use of an asset, the entity estimates the future cash inflows and outflows to be derived from continuing use of the asset and from its ultimate disposal and the entity applies the appropriate discount rate to those future cash flows.

Recognition and measurement (individual asset)

If the recoverable amount of a cash-generating asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. This reduction is an impairment loss.

An impairment loss is recognised immediately in surplus or deficit.

After the recognition of an impairment loss, the depreciation (amortisation) charge for the cash-generating asset is adjusted in future periods to allocate the cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.

Reversal of impairment loss

The entity assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a cash-generating asset may no longer

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exist or may have decreased. If any such indication exists, the entity estimates the recoverable amount of that asset.

An impairment loss recognised in prior periods for a cash-generating asset is reversed if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. The carrying amount of the asset is increased to its recoverable amount. The increase is a reversal of an impairment loss. The increased carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised for the asset in prior periods.

A reversal of an impairment loss for a cash-generating asset is recognised immediately in surplus or deficit.

After a reversal of an impairment loss is recognised, the depreciation (amortisation) charge for the cash-generating asset is adjusted in future periods to allocate the cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.

1.9 Impairment of non-cash-generating assets

Cash-generating assets are assets used with the objective of generating a commercial return. Commercial return means that positive cash flows are expected to be significantly higher than the cost of the asset.

Non-cash-generating assets are assets other than cash-generating assets.

Impairment is a loss in the future economic benefits or service potential of an asset, over and above the systematic recognition of the loss of the asset’s future economic benefits or service potential through depreciation (amortisation).

Carrying amount is the amount at which an asset is recognised in the statement of financial position after deducting any accumulated depreciation and accumulated impairment losses thereon.

A cash-generating unit is the smallest identifiable group of assets managed with the objective of generating a commercial return that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets.

Costs of disposal are incremental costs directly attributable to the disposal of an asset, excluding finance costs and income tax expense.

Depreciation (Amortisation) is the systematic allocation of the depreciable amount of an asset over its useful life.

Fair value less costs to sell is the amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal.

Recoverable service amount is the higher of a non-cash-generating asset’s fair value less costs to sell and its value in use.

Useful life is either:

• the period of time over which an asset is expected to be used by the entity; or

• the number of production or similar units expected to be obtained from the asset by the entity.

Identification

When the carrying amount of a non-cash-generating asset exceeds its recoverable service amount, it is impaired.

The entity assesses at each reporting date whether there is any indication that a non-cash-generating asset may be impaired. If any such indication exists, the entity estimates the recoverable service amount of the asset.

Irrespective of whether there is any indication of impairment, the entity also tests a non-cash-generating intangible asset with an indefinite useful life or a non-cash-generating intangible asset not yet available for use for impairment annually by comparing its carrying amount with its recoverable service amount. This impairment test is performed at the same time every year. If an intangible asset was initially recognised during the current reporting


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period, that intangible asset was tested for impairment before the end of the current reporting period.

Value in use

Value in use of non-cash-generating assets is the present value of the assets' remaining service potential.

The present value of the remaining service potential of a non-cash-generating assets is determined using the following approach:

Depreciated replacement cost approach

The present value of the remaining service potential of a non-cash-generating asset is determined as the depreciated replacement cost of the asset. The replacement cost of an asset is the cost to replace the asset’s gross service potential. This cost is depreciated to reflect the asset in its used condition. An asset may be replaced either through reproduction (replication) of the existing asset or through replacement of its gross service potential. The depreciated replacement cost is measured as the current reproduction or replacement cost of the asset, whichever is lower, less accumulated depreciation calculated on the basis of such cost, to reflect the already consumed or expired service potential of the asset.

The replacement cost and reproduction cost of an asset is determined on an “optimised” basis. The rationale is that the entity would not replace or reproduce the asset with a like asset if the asset to be replaced or reproduced is an overdesigned or overcapacity asset. Overdesigned assets contain features which are unnecessary for the goods or services the asset provides. Overcapacity assets are assets that have a greater capacity than is necessary to meet the demand for goods or services the asset provides. The determination of the replacement cost or reproduction cost of an asset on an optimised basis thus reflects the service potential required of the asset.

Restoration cost approach

Restoration cost is the cost of restoring the service potential of an asset to its pre-impaired level. The present

value of the remaining service potential of the asset is determined by subtracting the estimated restoration cost of the asset from the current cost of replacing the remaining service potential of the asset before impairment. The latter cost is determined as the depreciated reproduction or replacement cost of the asset, whichever is lower

Recognition and measurement

If the recoverable service amount of a non-cash-generating asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable service amount. This reduction is an impairment loss.

An impairment loss is recognised immediately in surplus or deficit.

After the recognition of an impairment loss, the depreciation (amortisation) charge for the non-cash-generating asset is adjusted in future periods to allocate the non-cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.

Reversal of an impairment loss

The entity assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a non-cash-generating asset may no longer exist or may have decreased. If any such indication exists, the entity estimates the recoverable service amount of that asset.

An impairment loss recognised in prior periods for a non-cash-generating asset is reversed if there has been a change in the estimates used to determine the asset’s recoverable service amount since the last impairment loss was recognised. The carrying amount of the asset is increased to its recoverable service amount. The increase is a reversal of an impairment loss. The increased carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised for the asset in prior periods.

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A reversal of an impairment loss for a non-cash-generating asset is recognised immediately in surplus or deficit.

After a reversal of an impairment loss is recognised, the depreciation (amortisation) charge for the non-cash-generating asset is adjusted in future periods to allocate the non-cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.

1.10 Employeebenefits

Employee benefits are all forms of consideration given by an entity in exchange for service rendered by employees.

Termination benefits are employee benefits payable as a result of either:

• an entity’s decision to terminate an employee’s employment before the normal retirement date; or

• an employee’s decision to accept voluntary redundancy in exchange for those benefits.

Short-term employee benefits

Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled within twelve months after the end of the period in which the employees render the related service.

Short-term employee benefits include items such as:

• wages, salaries and social security contributions;• short-term compensated absences (such as

paid annual leave and paid sick leave) where the compensation for the absences is due to be settled within twelve months after the end of the reporting period in which the employees render the related employee service;

• bonus, incentive and performance related payments payable within twelve months after the end of the reporting period in which the employees render the related service; and

• non-monetary benefits (for example, medical care, and free or subsidised goods or services such as housing, cars and cellphones) for current employees.

When an employee has rendered service to the entity during a reporting period, the entity recognises the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service:

• as a liability (accrued expense), after deducting any amount already paid. If the amount already paid exceeds the undiscounted amount of the benefits, the entity recognises that excess as an asset (prepaid expense) to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund; and

• as an expense, unless another Standard requires or permits the inclusion of the benefits in the cost of an asset.

The expected cost of compensated absences is recognised as an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs. The entity measures the expected cost of accumulating compensated absences as the additional amount that the entity expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

The entity recognises the expected cost of bonus, incentive and performance related payments when the entity has a present legal or constructive obligation to make such payments as a result of past events and a reliable estimate of the obligation can be made. A present obligation exists when the entity has no realistic alternative but to make the payments.

Other post-retirement obligations

The entity provides post-retirement health care benefits upon retirement to some retirees.

The entitlement to post-retirement health care benefits is based on the employee remaining in service up to retirement age and the completion of a minimum service period. The expected costs of these benefits are accrued over the period of employment. Independent qualified actuaries carry out valuations of these obligations. The entity also provides a gratuity and housing subsidy on retirement to certain employees. An annual charge to income is made to cover both these liabilities.


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Actuarial assumptions

Actuarial assumptions are unbiased and mutually compatible.

Financial assumptions are based on market expectations, at the reporting date, for the period over which the obligations are to be settled.

The rate used to discount post-employment benefit obligations (both funded and unfunded) reflect the time value of money. The currency and term of the financial instrument selected to reflect the time value of money is consistent with the currency and estimated term of the post-employment benefit obligations.

Post-employment benefit obligations are measured on a basis that reflects:

• estimated future salary increases;• the benefits set out in the terms of the plan (or

resulting from any constructive obligation that goes beyond those terms) at the reporting date; and

• estimated future changes in the level of any state benefits that affect the benefits payable under a defined benefit plan, if, and only if, either:

• those changes were enacted before the reporting date; or

• past history, or other reliable evidence, indicates that those state benefits will change in some predictable manner, for example, in line with future changes in general price levels or general salary levels.

Assumptions about medical costs take account of estimated future changes in the cost of medical services, resulting from both inflation and specific changes in medical costs.

1.11 Provisions and contingencies

Provisions are recognised when:

• the entity has a present obligation as a result of a past event;

• it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation; and

• a reliable estimate can be made of the obligation.

The amount of a provision is the best estimate of the expenditure expected to be required to settle the present obligation at the reporting date.

Where the effect of the time value of money is material, the amount of a provision is the present value of the expenditures expected to be required to settle the obligation.

The discount rate is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the reimbursement is recognised when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement is treated as a separate asset. The amount recognised for the reimbursement does not exceed the amount of the provision.

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. Provisions are reversed if it is no longer probable that an outflow of resources embodying economic benefits or service potential will be required, to settle the obligation.

Where discounting is used, the carrying amount of a provision increases in each period to reflect the passage of time. This increase is recognised as an interest expense.

A provision is used only for expenditures for which the provision was originally recognised.

Provisions are not recognised for future operating expenditure.

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If the entity has a contract that is onerous, the present obligation (net of recoveries) under the contract is recognised and measured as a provision.

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the entity.

A contingent liability is:

• a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or

• a present obligation that arises from past events but is not recognised because: - it is not probably that an outflow of resources

embodying economic benefits or service potential will be required to settle the obligation;

- the amount of the obligation cannot be measured with sufficient reliability.

Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in note 25.

1.12 Revenue from exchange transactions

Measurement

Revenue is measured at the fair value of the consideration received or receivable, net of trade discounts and volume rebates.

Interest

Revenue arising from the use by others of entity assets yielding interest, royalties and dividends or similar distributions is recognised when:

• it is probable that the economic benefits or service potential associated with the transaction will flow to the entity; and; or

• the amount of the revenue can be measured reliably.

Interest is recognised, in surplus or deficit, using the effective interest rate method.

1.13 Revenue from non-exchange transactions

Revenue comprises gross inflows of economic benefits or service potential received and receivable by an entity, which represents an increase in net assets, other than increases relating to contributions from owners.

Conditions on transferred assets are stipulations that specify that the future economic benefits or service potential embodied in the asset is required to be consumed by the recipient as specified or future economic benefits or service potential must be returned to the transferor.

Restrictions on transferred assets are stipulations that limit or direct the purposes for which a transferred asset may be used, but do not specify that future economic benefits or service potential is required to be returned to the transferor if not deployed as specified.

Stipulations on transferred assets are terms in laws or regulation, or a binding arrangement, imposed upon the use of a transferred asset by entities external to the reporting entity.

Recognition

An inflow of resources from a non-exchange transaction recognised as an asset is recognised as revenue, except to the extent that a liability is also recognised in respect of the same inflow.

As the entity satisfies a present obligation recognised as a liability in respect of an inflow of resources from a non-exchange transaction recognised as an asset, it reduces


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the carrying amount of the liability recognised and recognises an amount of revenue equal to that reduction.

Measurement

Revenue from a non-exchange transaction is measured at the amount of the increase in net assets recognised by the entity.

When, as a result of a non-exchange transaction, the entity recognises an asset, it also recognises revenue equivalent to the amount of the asset measured at its fair value as at the date of acquisition, unless it is also required to recognise a liability. Where a liability is required to be recognised it will be measured as the best estimate of the amount required to settle the obligation at the reporting date, and the amount of the increase in net assets, if any, recognised as revenue. When a liability is subsequently reduced, because the taxable event occurs or a condition is satisfied, the amount of the reduction in the liability is recognised as revenue.

Gifts and donations, including goods in-kind

Gifts and donations, including goods in kind, are recognised as assets and revenue when it is probable that the future economic benefits or service potential will flow to the entity and the fair value of the assets can be measured reliably.

1.14 Investment income

Investment income is recognised on a time-proportion basis using the effective interest method.

1.15 Fruitless and wasteful expenditure

Fruitless and wasteful expenditure means expenditure which was made in vain and could have been avoided had reasonable care been exercised.

Any expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the statement of financial performance and financial position in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense,

and where recovered, it is subsequently accounted for as revenue in the statement of financial performance or financial position.

1.16 Irregular expenditure

Irregular expenditure as defined in section 1 of the Public Finance Management Act means expenditure other than unauthorised expenditure, incurred in contravention of or that is not in accordance with a requirement of any applicable legislation, including:

(a) this Act; or(b) the State Tender Board Act, 1968 (Act No. 86 of 1968),

or any regulations made in terms of the Act.

1.17 Budget information

The approved budget is prepared on a accrual basis.

The approved budget covers the 12 months ending 31 March 2019.

The annual financial statements and the budget are on the same basis of accounting therefore a reconciliation with the budgeted amounts for the reporting period have not been included in the Statement of comparison of budget and actual amounts.

1.18 Related parties

A related party is a person or an entity with the ability to control or jointly control the other party, or exercise significant influence over the other party, or vice versa, or an entity that is subject to common control, or joint control.

Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Joint control is the agreed sharing of control over an activity by a binding arrangement, and exists only when the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control (the venturers).

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Related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party, regardless of whether a price is charged.

Significant influence is the power to participate in the financial and operating policy decisions of an entity, but is not control over those policies.

Management are those persons responsible for planning, directing and controlling the activities of the entity, including those charged with the governance of the entity in accordance with legislation, in instances where they are required to perform such functions.

Close members of the family of a person are considered to be those family members who may be expected to influence, or be influenced by, that management in their dealings with the entity.

The entity is exempt from disclosure requirements in relation to related party transactions if that transaction occurs within normal supplier and/or client/recipient relationships on terms and conditions no more or less favourable than those which it is reasonable to expect the entity to have adopted if dealing with that individual entity or person in the same circumstances and terms and

conditions are within the normal operating parameters established by that reporting entity's legal mandate.

Where the entity is exempt from the disclosures in accordance with the above, the entity discloses narrative information about the nature of the transactions and the related outstanding balances, to enable users of the entity’s financial statements to understand the effect of related party transactions on its financial statements.

1.19 Commitments

Items are classified as commitments where the entity commits itself to future transactions that will normally result in the outflow of resources.

Capital commitments are not recognised in the statement of financial position as a liability, but are included in the disclosure notes in the following cases:

• approved and contracted commitments;• approved and not contracted for;• where the expenditure has been approved and the

contract has been awarded at the reporting date; and• where disclosure is required by a specific standard

of GRAP.


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2 . N E W S TA N D A R D S A N D I N T E R P R E TAT I O N S

2.1 Standardsandinterpretationsissued,butnotyeteffective

The entity has not applied the following standards and interpretations, which have been published and are mandatory for the entity’s accounting periods beginning on or after 01 April 2019 or later periods:

GRAP 34: Separate Financial Statements

The objective of this Standard is to prescribe the accounting and disclosure requirements for investments in controlled entities, joint ventures and associates when an entity prepares separate financial statements.

It furthermore covers Definitions, Preparation of separate financial statements, Disclosure, Transitional provisions and Effective date.

The effective date of the standard is for years beginning on or after 01 April 2020.

The entity expects to adopt the standard for the first time in the 2020/2021 financial statements.

It is unlikely that the standard will have a material impact on the entity's financial statements.

GRAP 35: Consolidated Financial Statements

The objective of this Standard is to establish principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities.

To meet this objective, the Standard:

• requires an entity (the controlling entity) that controls one or more other entities (controlled entities) to present consolidated financial statements;

• defines the principle of control, and establishes control as the basis for consolidation;• sets out how to apply the principle of control to identify whether an entity controls another entity and therefore must

consolidate that entity;• sets out the accounting requirements for the preparation of consolidated financial statements; and• defines an investment entity and sets out an exception to consolidating particular controlled entities of an investment

entity.

It furthermore covers Definitions, Control, Accounting requirements, Investment entities: Fair value requirement, Transitional provisions and Effective date.



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GRAP 36: Investments in Associates and Joint VenturesThe objective of this Standard is to prescribe the accounting for investments in associates and joint ventures and to set out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.

It furthermore covers Definitions, Significant influence, Equity method, Application of the equity method, Separate financial statements, Transitional provisions and Effective date.




GRAP 37: Joint Arrangements

The objective of this Standard is to establish principles for financial reporting by entities that have an interest in arrangements that are controlled jointly (i.e. joint arrangements).

To meet this objective, the Standard defines joint control and requires an entity that is a party to a joint arrangement to determine the type of joint arrangement in which it is involved by assessing its rights and obligations and to account for those rights and obligations in accordance with that type of joint arrangement.

It furthermore covers Definitions, Joint arrangements, Financial statements and parties to a joint arrangement, Separate financial statements, Transitional provisions and Effective date.

The effective date of the standard is for years beginning on or after 01 April 2020



GRAP 38: Disclosure of Interests in Other Entities

The objective of this Standard is to require an entity to disclose information that enables users of its financial statements to evaluate:

• the nature of, and risks associated with, its interests in controlled entities, unconsolidated controlled entities, joint arrangements and associates, and structured entities that are not consolidated; andŸthe effects of those interests on its financial position, financial performance and cash flows.

It furthermore covers Definitions, Disclosing information about interests in other entities, Significant judgements and assumptions, Investment entity status, Interests in controlled entities, Interests in joint arrangements and associates,


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Interests in structured entities that are not consolidated, Non-qualitative ownership interests, Controlling interests acquired with the intention of disposal, Transitional provisions and Effective date.




GRAP 110 (as amended 2016): Living and Non-living Resources

The objective of this Standard is to prescribe the:

• recognition, measurement, presentation and disclosure requirements for living resources; and• disclosure requirements for non-living resources

It furthermore covers Definitions, Recognition, Measurement, Depreciation, Impairment, Compensation for impairment, Transfers, Derecognition, Disclosure, Transitional provisions and Effective date.

The subsequent amendments to the Standard of GRAP on Living and Non-living Resources resulted from editorial changes to the original text and inconsistencies in measurement requirements in GRAP 23 and other asset-related Standards of GRAP in relation to the treatment of transaction costs. Other changes resulted from changes made to IPSAS 17 on Property, Plant and Equipment (IPSAS 17) as a result of the IPSASB’s Improvements to IPSASs 2014 issued in January 2015 and Improvements to IPSASs 2015 issued in March 2016.

The most significant changes to the Standard are:

• General improvements: To clarify the treatment of transaction costs and other costs incurred on assets acquired in non-exchange transactions to be in line with the principle in GRAP 23; and To clarify the measurement principle when assets may be acquired in exchange for a non-monetary asset or assets, or a combination of monetary and non-monetary assets

• IPSASB amendments: To clarify the revaluation methodology of the carrying amount and accumulated depreciation when a living resource is revalued; To clarify acceptable methods of depreciating assets; and To define a bearer plant and include bearer plants within the scope of GRAP 17 or GRAP 110, while the produce growing on bearer plants will remain within the scope of GRAP 27



IGRAP 20 Accounting for Adjustments to Revenue

• Adjustments to revenue recognised it terms of legislation or similar means following completion of an internal review process or outcome of external appeal or objection

• Principles may be applied, by analogy adjustments to exchange or non-exchange revenue arising from contractual arrangements with similar fact patterns

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3 . R E C E I V A B L E S F R O M E X C H A N G E T R A N S A C T I O N S

Figures in Rand 2019 2018

Trade receivables 1 187 152 866

Deposits 163 071 163 071

Sundry receivables 309 733 637 690

473 991 953 627

Reconciliation of receivables from exchange transactions

Trade receivables 1 358 385 806 708

Sundry Receivables 309 733 637 690

Deposits 163 071 163 071

Less impairment allowances (1 357 198) (653 842)

473 991 953 627

Receivable from non exchange transaction

Other Government Grant - 3 000 000

No trade and other receivables were pledged as security.

The amount of deposit of R 163 071 relates to a rental deposit and is non current in nature. The rental term of 36 months terminates in 2021.

Credit quality of trade and other receivablesThe credit quality of trade and other receivables that are neither past nor due nor impaired can be assessed by reference to historical information about counterparty default rates.

Trade and other receivables past due but not impairedTrade and other receivables that are more than 30 days outstanding are considered past due. All receivables are individually assessed for impairment.

The entity has assessed these balances for recoverability and believes that they are still of good credit quality.


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The ageing of amounts past due but not impaired is as follows:


30 days - 3 610

60 days - 610

90 days - 13 320

More than 90 days - 610

Trade and other receivables impairedAs of 31 March 2019, trade and other receivables of R 1 358 385 (2018: R 806 708) were impaired and provided for.The amount of the impairment allowance was R (1 357 199) as of 31 March 2019 [2018: R (653 842)].The ageing of these receivables is as follows:

30 days 45 895 44 167

60 days 45 195 14 171

90 days 48 995 75 814

More than 90 days 1 218 299 654 406

Reconciliation of allowance for impairment of trade and other receivables

Opening balance 653 842 321 933

Provision for impairment 703 357 345 008

Amounts written off as uncollectible - (13 099)

1 357 199 653 842

4 . C A S H A N D C A S H E Q U I V A L E N T S

Cash and cash equivalents consist of:

Cash on hand 6 500 6 500

Bank balances 14 356 978 4 963 370

Short-term deposits 33 234 642 30 679 921

47 598 120 35 649 791

Restrictions on use of cash and cash equivalentsIncluded in bank balances and short term deposits are amounts held that may only be used in accordance with agreements with various transferors for non-exchange revenue.

At reporting date the amounts subject to restrictions were:

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A Galla Workshops 1 509 1 408

A Skakanga Trust Fund 1 561 1 457

Almshouse 2 278 2 127

Australian War Graves 136 964 127 856

Bellingham 6 232 5 817

Bethanie Restoration Trust 24 628 22 990

Bien Donne Restoration Trust 205 414 191 756

Bo-Kaap Trust 8 754 8 172

Constitution Hill 2 080 1 942

Dutch Reformed Church Somerset West 3 308 3 088

Department of Arts and Culture projects 24 797 248 23 229 754

Sanlam 2002 - Moffat Mission 8 466 7 903

Dutch Reformed Church Ladies Association 67 229 62 758

Empire Road 27 445 25 620

Esme Lownds 41 332 38 584

Fort Armstrong 2 341 2 185

Genadendal Bequest 494 144 461 286

Getty Foundation 1 340 1 251

Hugo Vault 13 695 12 784

Klein Bosch Cemetery 4 060 3 790

La Motte 21 093 19 690

Langehoven`s Arbeidsgenot 47 616 44 450

Lemana Cottage 94 471 88 189

MM Hill Trust Fund 664 037 619 882

Mackie Niven 9 671 10 557

Mamre Projects 22 653 21 147

Matjes River Leaky Foundation 60 536 56 511

Mgwali Mission Church 67 552 63 060

NMC Publications Trust Fund 36 450 34 026

National Geographic Footprint 23 386 21 831

Oppenheimer Geological 564 230 526 712

Owl House Trust Funds 60 665 56 632

Sanlam Award, De Bult 15 762 14 714

Sanlam Fund, Waenshuiskranz 47 233 44 092

Sanlam,Steinkopf Mission 4 143 3 867

Sanlam, Valdezia 3 429 3 201

Sharley Cribb Nursing Home 10 799 10 081

Sontonga Memorial Fund 3 743 3 494


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St Stephen's Church 9 149 8 541

Steinkopf Mission Church 635 593

Strand Street Lutheran Church 23 543 21 978

Vrijstatia Association 17 969 16 774

Wouterson Wessels Vault 2 118 1 977

Rowland and Leta Hill 7 600 7 094

Ansteys Building 181 099 169 057

Egazini 8 217 7 670

Sanlam Award-Potolozi 1 300 1 214

Sanlam 2003 Medigen Church 1 766 1 648

British War Graves 1 170 1 092

Makapans Cave 2 128 505 2 003 965

Makgabeng 1 124 611 1 059 203

ICCROM 68 113 63 584

Maritime projects 288 844 288 122

31 472 136 29 507 176

5 . I N V E S T M E N T P R O P E R T Y

2019 2018

Figures in RandCost /

Valuation

Accumulated depreciation

and accumulated impairment

Carrying value

Cost / Valuation



Carrying value

Investment property 23 790 000 (621 945) 23 168 055 23 790 000 (506 395) 23 283 605

Reconciliation of investment property - 2019Opening balance Depreciation Total

Investment property 23 283 605 (115 550) 23 168 055


Investment property 23 399 077 (115 472) 23 283 605

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Reconciliation of investment property - 2019Opening balance Transfers Depreciation Total

Land 15 123 722 - - 15 123 722

Buildings 8 159 883 - (115 550) 8 044 333

23 283 605 - (115 550) 23 168 055


Land 15 123 722 - 15 123 722

Buildings 8 275 355 (115 472) 8 159 883

23 399 077 (115 472) 23 283 605

Cost of investment properties as per the valuation done on the 31 March 2016.

The land and buildings included in investment property are listed below. The land and buildings were revalued as at 31 March 2016 by an independent valuer. The method of valuation employed was the market value and replacement cost approach. The market value and replacement cost was determine by taking the estimated amount for which an asset should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion. Also taking into account the current cost of a similar asset offering equivalent utility. The investment properties do not experience significant and volatile changes in fair value, thus taking cost vs benefit into account management will only make use of an independent professional valuator every three years. Frequent revaluations are unnecessary for investment property with only insignificant changes in fair value.

The fair value of the individual investment properties as per the valuation done on the 31 March 2016 are listed below:

Land and Buildings 2019 Land Buildings Total

Fisherman Cottage 847 600 352 400 1 200 000

Welcome Cottage 399 700 1 500 300 1 900 000

Mooimeisiesfontein 316 087 293 913 610 000

Dal Josafat 6 978 575 4 711 425 11 690 000

Valkenburg 1 145 600 154 400 1 300 000

Het Posthuys, Muizenburg 3 954 000 246 000 4 200 000

Onderdal School, Wellington 174 560 765 440 940 000

Old Gaol, Grahamstown 1 307 600 642 400 1 950 000

15 123 722 8 666 278 23 790 000


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Land and Buildings 2018 Land Buildings Total

Fisherman Cottage 847 600 352 400 1 200 000

Welcome Cottage 399 700 1 500 300 1 900 000

Mooimeisiesfontein 316 087 293 913 610 000

Dal Josafat 6 978 575 4 711 425 11 690 000

Valkenburg 1 145 600 154 400 1 300 000

Het Posthuys, Muizenburg 3 954 000 246 000 4 200 000

Onderdal School, Wellington 174 560 765 440 940 000

Old Gaol, Grahamstown 1 307 600 642 400 1 950 000

15 123 722 8 666 278 23 790 000


Amounts recognised in surplus and deficit for the year

Rental income 1 054 292 873 996

Direct operating expenses arising from investment property that generated rental income

Rates and taxes 81 611 150 552

Water and electricity 900 672 489 205

982 283 639 757

Direct operating expenses arising from investment property that did not generated rental income

Rates and taxes 33 432 46 443

Water and electricity 35 483 70 684

68 915 117 127

Repairs and maintenance related to investment properties

Land - -

Building 260 607 354 121

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6 . P R O P E R T Y, P L A N T A N D E Q U I P M E N T

2019 2018

Cost / Valuation



Carrying value

Cost / Valuation



Carrying value

Land 2 300 000 - 2 300 000 2 300 000 - 2 300 000

Buildings 15 400 000 (616 000) 14 784 000 15 400 000 (410 667) 14 989 333

Leasehold property 1 631 500 (845 694) 785 806 891 478 (713 164) 178 314

Plant and equipment 2 002 963 (1 294 226) 708 737 1 925 767 (1 076 560) 849 207

Furniture and fixtures 2 076 991 (1 550 014) 526 977 1 965 108 (1 301 766) 663 342

Motor vehicles 1 641 158 (880 931) 760 227 1 641 158 (797 246) 843 912

IT equipment 2 978 091 (2 889 009) 89 082 2 975 834 (2 662 726) 313 108

Vessels 611 080 (370 012) 241 068 611 080 (342 070) 269 010

Library books 571 938 (310 243) 261 695 571 938 (253 049) 318 889

Non Current Assets held for sale 492 - 492 492 - 492

Total 29 214 213 (8 756 129) 20 458 084 28 282 855 (7 557 248) 20 725 607

Reconciliation of property, plant and equipment - 2019

Opening balance Additions Depreciation

Change in estimate

Impairment Loss Total

Land 2 300 000 - - - - 2 300 000

Buildings 14 989 333 - (205 333) - - 14 784 000

Leasehold property 178 314 740 023 (259 897) 127 366 - 785 806

Plant and equipment 849 207 77 196 (217 289) - -377 708 737

Furniture and fixtures 663 342 111 882 (248 247) - - 526 977

Motor vehicles 843 912 - (125 603) 41 918 - 760 227

IT equipment 313 108 2 257 (224 880) - (1 403) 89 082

Vessels 269 010 - (27 942) - - 241 068

Library books 318 889 - (57 194) - - 261 695

Non Current Assets Held for Sale 492 - - - - 492

20 725 607 931 358 (1 366 385) 169 284 (1 780) 20 458 084


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Reconciliation of property, plant and equipment - 2018

Opening balance Additions Disposals Depreciation Total

Land 2 300 000 - - - 2 300 000

Buildings 15 194 666 - - (205 333) 14 989 333

Leasehold property 480 978 - - (302 664) 178 314

Plant and equipment 912 165 154 222 - (217 180) 849 207

Furniture and fixtures 932 180 - - (268 838) 663 342

Motor vehicles 579 530 471 113 (81 024) (125 707) 843 912

IT equipment 556 158 190 637 - (433 687) 313 108

Vessels 296 952 - - (27 942) 269 010

Library books 344 267 29 157 - (54 535) 318 889

Non Current Assets Held for Sale 492 - - - 492

21 597 388 845 129 (81 024) (1 635 886) 20 725 607

The land and buildings included in the property, plant and equipment is 109/111 Harrington Street which is a declared provincial heritage site in Government Notice No. 2517, as published in Government Gazette 12814 of 2 November 1990. The building was formerly known as Granite Lodge and it is now used as the head office of the South African Heritage Resources Agency.

Revaluation of land and buildingsThe land and buildings were revalued as at 31 March 2016 by an independent valuer. The method employed in conducting revaluation was the Income Capitalisation Approach. The net normalised income of the property was determined based on the assumption that the property is fully let at open market rental; market escalation applies and incurs market related operating cost. The net normalised income is then capitalised into perpetuity using a market related capitalisation rate to reflect the open market value. The capitalisation rate was 9.5%.

The entity has leasehold assets in the hands of the lessee. The lease agreement placed restrictions over the assets.

The non-current assets held for sale relates to filing cabinets which are to be transferred to the Gauteng Pronvicial Heritage Agency. The transfer is a result of devolution of previous pronvincial offices into Provincial Heritage Agencies

A N N UA L R E P O R T 2 0 1 8 / 1 9

1 1 8


Repairs and Maintenance related to property, plant and equipment

Land - -

Building 56 312 148 468

IT equipment 40 133 146 367

Motor vehicles 33 128 31 229

Plant and equipment 3 127 -

Leasehold property - -

132 700 326 064

7 . H E R I TA G E A S S E T S

2019 2018

Cost / Valuation

Accumulated impairment

lossesCarrying

valueCost /

Valuation

Accumulated impairment

lossesCarrying

value

Art and artifacts 123 440 - 123 440 123 440 - 123 440

Library books 1 675 015 - 1 675 015 1 675 015 - 1 675 015

Land and buildings 10 265 200 - 10 265 200 10 265 200 - 10 265 200

Total 12 063 655 - 12 063 655 12 063 655 - 12 063 655

Reconciliation of heritage assets 2019Opening balance Total

Art and artifacts 123 440 123 440

Library books 1 675 015 1 675 015

Land and buildings 10 265 200 10 265 200

12 063 655 12 063 655

Reconciliation of heritage assets 2018Opening balance Additions Total

Art and artifacts 123 440 - 123 440

Library books 1 671 284 3 731 1 675 015

Land and buildings 10 265 200 - 10 265 200

12 059 924 3 731 12 063 655


a s a t 3 1 M a r c h 2 0 1 9


1 1 9


a s a t 3 1 M a r c h 2 0 1 9

Heritage assets which fair values cannot be reliably measured

Library BooksManagement define the fair value measurement as, the fair value of the assets herein described if exposed for sale in a second-hand market, allowing a reasonable period to find a purchaser who is well informed and buys with full knowledge of the collection in their current state.

Library books and art and artefactsThe library books were fair valued as at 31 March 2015 by an independent valuer. The method of valuation employed was the fair value approach. Fair value measurement is defined as, the fair value of the assets herein described if exposed for sale in a second-hand market, allowing a reasonable period to find a purchaser who is well informed and buys with full knowledge of the collection in their current state. The fair value was ascertained by reference to quoted prices in an active and liquid market. (GRAP 103.43). The sale would be at "arm's length" with no undue pressure on purchaser or seller. In determining the value of the library books, influences such as market climate, sensitivity to exchange rate variances, sales history and condition of the

The art and artefacts were fair valued as at 31 March 2015 by an independent valuer. The method of valuation employed was the fair value approach. Fair value measurement is defined as, the fair value of the assets herein described if exposed for sale in a second-hand market, allowing a reasonable period to find a purchaser who is well informed and buys with full knowledge of the collection in their current state. The fair value was ascertained by reference to quoted prices in an active and liquid market. (GRAP 103.43) The sale would be at "arm's length" with no undue pressure on purchaser or seller. In determining the value of. The fine arts, antiques and collectibles, influences such as market climate, sensitivity to exchange rate variances, sales history and condition of the asset play an important role.

Following the evaluation and valuation that have been performed on the heritage assets on the 31 March 2015, heritage assets - library books and art and artifacts were retrospectively adjusted against the opening balance in the statement of

financial position on the 01 April 2013. The professional valuers are of the opinion that the heritage assets do not experience significant and volatile changes in fair value, thus the retrospective adjustment against accumulative surplus was possible taking into account that the fair value would not have been significantly different at 31 March 2013:

Art and artefactsManagement define the fair value measurement as, the fair value of the assets herein described if exposed for sale in a second-hand market, allowing a reasonable period to find a purchaser who is well informed and buys with full knowledge of the collection in their current state. No commercial value could be determined for 91 art and artifact assets classified as heritage.

Land and buildingsThe land and buildings included in heritage assets are listed below. The land and buildings were revalued as at 31 March 2016 by an independent valuer. The method of valuation employed was the market value and replacement cost approach. The market value and replacement cost was determined by taking the estimated amount for which an asset should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction, after proper marketing wherein the parties had each acted knowledgeably, prudently, and without compulsion. Also taking into account the current cost of a similar asset offering equivalent utility. The entity is responsible for coordinating the identification and management of heritage resources in the country. In principle the heritage properties are held in custody by SAHRA on behalf of the nation for the present and future generations.

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Land and Buildings

Woustersen Wessel Vault, Green Point 710 000 710 000

Van Riebeeck`s Hedge, Bishopscourt 1 900 000 1 900 000

Hugo Family Vault, Simon's Town 130 000 130 000

Kleinbosch Cemetery, Dal Josafat 10 000 10 000

Groenberg School, Wellington 1 010 000 1 010 000

Erf 56, Tulbagh 450 000 450 000

Erf 225, Tulbagh 470 000 470 000

The Lookout, Uitenhage 160 000 160 000

Old Congregation Church, Cradock 1 000 000 1 000 000

Old Residency, King Williamstown`s Town 1 100 000 1 100 000

Garden of Remembrance, Aliwal North 940 000 940 000

Burgher Monuments, Boomplaats 18 000 18 000

Union Masonic Temple, Kimberley 260 000 260 000

Moorddrift Monument, Potgietersrus 11 000 11 000

Old English Fort, Marabastad 27 000 27 000

Verduin Ruins, Soutpansberg District 4 800 4 800

Powder Magazine, Potchesfstroom 40 000 40 000

Old Fort and Cementery, Potchefstroom 120 000 120 000

Site of Dr. David Livingstone's House, Marico District 3 400 3 400

Blarney Cottage, Richmond 270 000 270 000

Birth Place of General Louis Botha, Greytown 30 000 30 000

Spioenkop Battlefield, Ladysmith 550 000 550 000

Elandslaagte Memorial, Ladysmith 22 500 22 500

Piet Retief's Grave, Ulundi 98 500 98 500

Mapoch's Caves, Roossenekal 670 000 670 000

Krugerhof, Waterval-Boven 260 000 260 000

10 265 200 10 265 200


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8 . I N TA N G I B L E A S S E T S

2019 2018

Cost / Valuation

Accumulated amortisation


Carrying value

Cost / Valuation

Accumulated amortisation


Carrying value

Computer software 762 968 (437 693) 325 275 431 871 (393 710) 38 161

Website - SAHRIS 486 675 - 486 675 486 675 - 486 675

Total 1 249 643 (437 693) 811 950 918 546 (393 710) 524 836

Reconciliation of intangible assets - 2019Opening balance Additions Amortisation Total

Computer software 38 161 331 096 (43 982) 325 275

Website - SAHRIS 486 675 - - 486 675

524 836 331 096 (43 982) 811 950

Reconciliation of intangible assets - 2018Opening balance Amortisation

Impairment loss Total

Computer software 94 392 (35 895) (20 336) 38 161

Website - SAHRIS 486 675 - - 486 675

581 067 (35 895) (20 336) 524 836

Intangible assets with indefinite lives: SAHRIS is responsible for the management of the inventory of the National Estate and is an integrated and interactive system for the management of the national heritage resources. SAHRIS will be recognised into perpetuity as long as the requirements for it stipulated in NHRA remain in place. The impairment will be tested on an annual basis.

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9 . O P E R AT I N G L E A S E A S S E T / L I A B I L I T Y


Operating lease asset

Non-current assets 20 912 702 20 037 518

Current assets 853 367 864 275

21 766 069 20 901 793

Operating leases as lessor (income)

Minimum lease payments due

Within 1 year 119 996 109 088

In 2nd to 5th year inclusive 612 594 556 904

Later than 5 years 61 662 210 61 837 898

62 394 800 62 503 890

Operating lease income represents rentals received by the entity from buildings owned.

Leases have terms between 1 and 65 years, with the option to extend for a further period. The rentals escalate at a rate of 10% per year on average.

Operating lease liability

Current operating lease 32 647 34 383

Non current liabilities 65 899 -

98 546 34 383

Operating lease liability

Minimum lease payments due

Within 1 year 1 732 091 453 281

In 2nd to 5th year inclusive 3 661 478 -

5 393 569 453 281

Operating lease payments represent rentals payable by the entity for the renting at its regional offices. The leases were negotiated for a period of 60 months, with the option to renew. The rentals escalate at a rate of 8% per annum.

Operating lease payments represent rental payable by the entity for the renting of printers for a period of 36 months. There is no escalation on the lease.


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Operating lease payments rental payable by the entity for the renting of its Head Office space in 79 Roeland Street. The lease was negotiated for a period of 36 months with the option to renew. The rentals escalate at a rate of 8% per annum.

1 0 . PAYA B L E S F R O M E X C H A N G E T R A N S A C T I O N S


Trade payables 76 752 777 834

Sundry payables 663 143 95 788

Accrued leave pay 1 476 550 1 349 092

Accrual for 13th cheque 869 791 843 524

Deposits received 50 728 48 228

Accruals 1 122 975 1 313 400

Provision for performance bonus 1 300 000 -

5 559 939 4 427 866

1 1 . O T H E R F I N A N C I A L L I A B I L I T I E S


Designated at fair value

Trust liabilities 2 863 956 2 861 695

Trust liabilities reflect monies held in trust accounts to be used for a specific purpose or project such as the maintenance of a specified asset.

Reconciliation of Trust liabilities

Opening Balance 2 861 695 2 855 650

Expense on Trust funds -905 -801

Interest Capitalised 203 166 206 846

Transfer from main account to trust funds for Genadendal (200 000) (200 000)

2 863 956 2 861 695

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1 2 . E M P L O Y E E M E D I C A L B E N E F I T O B L I G AT I O N S

Figures in Rand 2019 2018Post retirement health care benefit

The amounts recognised in the statement of financial position are as follows:

Changes in the present value of the defined benefit obligationOpening accrued liability 4 084 873 5 136 855Current service cost 52 763 52 165Current interest cost 351 193 486 105Medical contributions subsidies for continuation pensioners (169 912) (209 433)Actuarial (gain)/loss (473 936) (1 380 819)

3 844 981 4 084 873

Accounted as followsNon-current liabilities (3 657 161) (3 914 961)Current liabilities (187 820) (169 912)

(3 844 981) (4 084 873)

Reconciliation of the opening accrued liability to the current valuation:Opening balance 4 084 873 5 136 855Net expense recognised in the statement of financial performance (239 892) (1 051 982)

3 844 981 4 084 873

Net expense recognised in the income statement:Current service cost 52 763 52 165Current interest cost 351 193 486 105Actuarial (gains) losses (473 936) (1 380 819)

(69 980) (842 549)

Medical contributions subsidies for continued pensioners:Medical contributions subsidies for continuation pensioners (169 912) (209 433)

Net change in the accrued liability over the financial year is determined as follows:Net expense recognised in the income statement (69 980) (842 549)Medical contributions (169 912) (209 433)

(239 892) (1 051 982)


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In accordance with the requirements of GRAP 25, the Projected Unit Credit method has been applied. The assumption underlying the funding method is that the employer’s post etirement medical scheme costs in respect of an employee should be fully recognised by the time that the employee reaches fully accrued age.


Key assumptions used

Assumptions used at the reporting date:

Discount rates used 9,82% 8,78%

Expected rate of return on assets 7,79% 7,76%

Expected rate of return on reimbursement rights 1,88% 0,95%

Actual return on reimbursement rights 100,00% 100,00%

Proportion of employees opting for early retirement 90,00% 90,00%

SalariesSalary inflation is only applicable to those members who participate on plan options which are income based. Therefore, only the health care cost inflation assumption is applicable to this membership group. In the event that there were any members participating on income-based plan options, we would assume no bracket creep i.e. that salary inflation keeps pace with the income brackets. This implicitly implies that the contributions keep in line with health care cost inflation

The basis on which the discount rate has been determined is as follows:

Discount rateIt is a requirement of GRAP 25 that the valuation discount rate be equal to the actual long corporate bond yields. Since the South African market in corporate bonds is not sufficiently deep, it is accepted practice to use the South African Government Bonds as a proxy, with or without an additional margin to reflect corporate risk. The term maturity of such bond should be consistent with the term of the liability. The methodology of setting financial assumptions has been updated to be more duration specific. At the previous valuation date, 31 March 2018 the duration of liabilities was 10.44 years. At this duration the discount rate determined by using the Bond Exchange Zero Coupon Yield Curve as at 28 March 2019 is 9.82% per annum, and the yield on the inflation-linked bonds of a similar term was about 3.32% per annum, implying an underlying expectation of inflation of 6.29% per annum ([1 + 9.82%] / [1 + 3.32%] - 1).

Health care cost inflationA healthcare cost inflation rate of 7.79% was assumed. This is 1.50% in excess of the expected inflation over the expected term of the liability. However, it is the relative levels of the discount rate and healthcare inflation to one another that is important, rather than the nominal values. We have thus assumed a net discount factor of 1.88% per annum ([1 + 9.82%] / [1 + 7.79%] - 1). This year’s valuation basis is, therefore, lighter than the previous year’s basis from a discount rate perspective.

A N N UA L R E P O R T 2 0 1 8 / 1 9

1 2 6

Other assumptionsAssumed healthcare cost trend rates have a significant effect on the amounts recognised in surplus or deficit. A one percentage point change in assumed healthcare cost trend rates would have the following effects:

`

One percentage

point increase

One percentage

point decrease

Effect on the aggregate of the service cost and interest cost

52 763 47 669

Effect on defined benefit obligation 351 193 464 898

Amounts for the current and previous four years are as follows:

`

2019 2018 2017 2016 2015

R R R R R

Defined benefit obligation 3 844 981 4 084 873 5 136 855 5 306 417 4 934 088

1 3 . U N S P E N T C O N D I T I O N A L G R A N T S A N D R E C E I P T S


Unspent conditional grants and receipts

Unspent grants 5 706 567 5 751 825

Movement during the year

Balance at the beginning of the year 3 751 825 3 564 513

Additions during the year (238 367) (1 562)

Income recognition during the year 193 109 188 874

3 706 567 3 751 825

Reconciliation of unspent conditional grants and receipts

13.1 Makapans

Balance unspent at the begginning of the year 2 004 181 1 882 385

Conditions met and transferred to revenue (26 928) -781

Interest earned 125 399 122 577

2 102 652 2 004 181


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13.2 Makgabeng

Balance unspent at the beginning of the year 1 059 203 995 185

Conditions met and transferred to revenue -859 -781


1 124 611 1 059 203


13.3 DutchProjects

Balance unspent at the beginning of the year 288 440 286 942

Conditions met and transferred to revenue (6 488) -


283 395 288 440


13.4 Tourism Interpretive signage in the Iconic National Heritage Site in South Africa

Balance unspent at the beginning of the year 400 000 400 000

Conditions met and transferred to revenue (204 090) -

195 910 400 000


13.5 Fire Detection

Balance unspent at the beginning of the year 2 000 000 -

Transfer from Department of Arts and Culture - 2 000 000

2 000 000 2 000 000

13.1 Makapans

Makapans Valley Development (Agreement signed in 28 August 2003, no required completion date noted).

The grant agreement indicates that money paid to SAHRA must be used for the specific purpose. The National Lottery Distribution Trust Fund (NLDTF) has the right to withhold or reclaim the funds from the entity if the money is not used in the manner agreed. Unspent funds at end of the project is to be paid back to the NLDTF.

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13.2 Makgabeng

Write the history of Makgabeng and survey, research and document heritage resources in Makgabeng (Agreement signed in 11 June 2003, no required completion date noted).

Under the agreement, the money paid to SAHRA must be used for the specific purpose. The National Lottery Distribution Trust Fund (NLDTF) has the right to withhold or reclaim the funds from the entity if the money is not used in the manner agreed. Unspent funds at end of the project is to be paid back to the NLDTF.

13.3 DutchProjects

The project is between SAHRA and Cultural Heritage Agency to gather information about historical Dutch shipwrecks within South Africa territorial waters that have been subject to human intervention, principally non-archeological salvage and treasure hunting in nature. (Project plan signed on 23 November 2015)

Under the agreement, the money paid to SAHRA must be used for the specific purpose. Kingdom of the Netherlands has the right to demand repayment if the money is not used for its intended purpose

13.4 Tourism interpretive signage in the iconic National Heritage sites in South Africa

The project is between SAHRA and Department of Tourism for the design, production and installation of tourism interpretive signage in select national heritage sites in South Africa towards improving the quality of product offering for an increased and enhanced visitor experience. (Project plan signed on 29 November 2016)

Under the agreement, the money paid to SAHRA must be used for the specific purpose. Department of Tourism has the right to demand repayment if the money is not used for its intended purpose.

13.5 Fire Detection

The project is between SAHRA and Department of Arts and Culture for the upgrade of fire detection alarm and sprinkler system as approved by the Director General on 02 March 2018.

Under the agreement, the money paid to SAHRA must be used for the specific purpose.


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1 4 . R E V E N U E



Rental of facilities and equipment 1 918 568 1 987 760

Other income 195 328 93 832

Interest received - investment 2 706 544 2 147 326

Transfer payments 65 650 000 58 861 000

Public contributions and donations - 721 330

Other grant revenue 71 659 -

70 570 022 63 843 448

The amount included in revenue arising from exchanges of goods or services are as follows:


Rental income 1 918 568 1 987 760

Other income 195 328 93 832


4 848 363 4 261 118

The amount included in revenue arising from non-exchange transactions is as follows:

Transfer revenue

Government grants and subsidies (Department of Art and Culture) 65 650 000 58 861 000

Donations - 721 330

Other grant revenue 71 659 -

65 721 659 59 582 330

Donations

Included in the 2018 donations is an amount of R 688 442 received as revenue in kind from National Treasury for paying for investigation costs on behalf of the entity and library books received from donors amounting to R32 888.

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1 5 . G O V E R N M E N T G R A N T S A N D S U B S I D I E S


Government grants and subsidies (Department of Arts and Culture) 65 650 000 58 861 000

1 6 . O T H E R I N C O M E


Other income (includes claims and refunds) 195 328 93 832

1 7 . D E B T I M PA I R M E N T


Contributions to debt impairment provision 703 357 370 110

1 8 . F I N A N C E C O S T S


Finance costs 4 204 220 811


1 3 1


a s a t 3 1 M a r c h 2 0 1 9

1 9 . G E N E R A L E X P E N S E S


Advertising 176 681 522 852

Auditors remuneration 2 507 804 2 225 289

Bank charges 53 460 48 975

Cleaning 147 252 169 696

Computer expenses 638 113 351 345

Consulting and professional fees 2 469 202 2 781 733

Lease rentals on operating lease 1 859 184 1 951 398

Catering and refreshments 232 692 236 815

Insurance 475 243 296 786

Publications 18 185 78 906

Motor vehicle expenses 169 200 123 040

Postage and courier 38 987 22 396

Printing and stationery 541 721 678 459

Security 590 478 460 724

Staff welfare 13 442 162 243

Staff membership fees 98 867 46 136

Telephone and fax 1 099 891 969 131

Heritage promotion 2 242 381 1 827 061

Travel expenditure 4 550 073 4 874 193

Consumables 2 306 8 492

Water and electricity 1 613 107 1 138 006

Uniforms 14 620 2 143

Council Fees 643 043 867 566

Staff bursaries 113 158 134 155

Conference costs 14 769 55 808

Workshops 245 878 374 521

Administrative expenses 15 624 25 353

Internal audit 239 060 89 970

20 824 421 20 523 192

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2 0 . S A L A R I E S A N D B E N E F I T S


Acting allowances 673 806 340 706

Basic 28 557 331 27 126 629

13th cheque 1 664 430 1 623 773

Housing benefits and allowances 690 184 732 720

Leave pay charge 379 933 277 489

Performance bonus 1 300 000 -

Long-service awards 31 742 31 000

Medical aid - company contributions 1 388 049 1 642 330

Post- retirement health care benefits 403 956 538 270

Provident fund 3 500 107 3 430 733

Relocation and removal costs 34 695 78 707

SDL 317 168 322 129

Travel, motor car, accommodation, subsistence and other allowances 272 977 359 031

UIF 131 837 135 200

WCA 90 379 44 926

39 436 594 36 683 643


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a s a t 3 1 M a r c h 2 0 1 9

Executive committee remuneration - 2019

Annual Remuneration

Leave Paid Out

Long Service Award

13th Cheque Allowances Total

V. Baduza 1 318 105 144 923 - - 19 015 1 482 043Chief Executive OfficerEmployment date: 01.02.2015 Termination 15.01.2019Term 2019: 10 monthsK. Nkhasi-Lesaoana Executive Officer: Heritage Information Policy and Skills Development - Employment date: 01.12.2017

1 111 386 - 3 000 77 843 12 000 1 204 229

Term 2019: 12 monthsL.Malgas 1 232 614 - - - 157 960 1 390 574Company SecretaryEmployment date: 01.03.2018Term 2019: 12 monthsK Sekhabisa 1 194 300 - - - 12 000 1 206 300Chief Finance OfficerEmployment date: 01.08.2017Term 2019: 12 monthsD. Sibayi 1 078 177 - 8 371 84 143 12 000 1 182 691Executive Officer: Heritage Conservation ManagementEmployment date:01.08.1998Term for 2019: 12 monthsM. Krieg 1 063 297 - - - 12 000 1 075 297Executive Officer: Corporate ServicesEmployment date:01.11.2015Term for 2019: 12 months

6 997 879 144 923 11 371 161 986 224 975 7 541 134

A N N UA L R E P O R T 2 0 1 8 / 1 9

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Executive committee remuneration - 2018Annual

Remuneration13th

Cheque Allowances TotalsV. Baduza 1 540 591 - 56 332 1 596 923Chief Executive Officer Employment date: 01.02.2015Term 2018: 12 months K. Nkhasi-Lesaoana Executive Officer: Heritage Information Policy and Skills Development - Employment date: 01.12.2012 Termination

1 013 233 23 556 39 502 1 076 291

30.11.2017 Re-employment 01.12.2017 Term 2018: 12 months L.Malgas 993 917 - 12 000 1 005 917Company SecretaryEmployment date: 01.12.2012 Termination 30.11.2017 Re-employment 01.03.2018 Term 2018: 12 months K Sekhabisa 752 607 - 8 000 760 607Chief Finance OfficerEmployment date: 01.08.2017Term 2018: 7 monthsD. Sibayi 1 019 130 80 520 6 000 1 105 650Executive Officer: Heritage ResourcesEmployment date:01.08.1998Term for 2018: 12 monthsM. Krieg 932 390 37 047 29 806 999 243Executive Officer: Corporate ServicesEmployment date:01.11.2015Term for 2018: 12 months

6 251 868 141 123 151 640 6 544 631


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Council: Fees

Bouillon, S. (Prof) (Chairperson) 95 940 179 965

Guma, P.M (Dr) 46 222 55 660

Saule, N. (Prof) 46 200 59 752

Bredekamp, H.C (Prof) 58 956 78 532

Masooa, M.E Mr * - -

Molapisi M. (Ras) * (resigned ended 31 July 2018) - -

Gani, R. Ms 33 004 48 697

Houston, G.(Dr) 50 720 32 542

Makhweyane,M.T Mr 79 260 102 452

Semane, T. Ms 16 839 20 652

Malan A (Dr) 53 976 55 660

Lithole, D. Mr * - -

Sharfman, J. Mr 24 615 43 791

Menye,V.Ms 27 348 -

533 080 677 703

* No remuneration for the year under review because the member works for the public sector.

Audit and Risk Committee - Fees

Mitchell,D(Adv)(Chairperson) (term ended 30 November 2017) - 41 099

Gani, R. Ms 34 190 30 294

Semane, T. Ms (term ended 31 July 2016 and extended) - 10 863

Kgokolo, T. Mr (resigned ended 31 August 2017) - 28 339

Ramuedzisi, D. Mr 24 453 29 480

Menye,V,Ms (Chairperson) 48 120 38 581

106 763 178 656

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2 1 . I N T E R E S T R E C E I V E D - I N V E S T M E N T


Interest revenue


2 2 . A U D I T O R S ' R E M U N E R AT I O N


Audit fees 2 507 804 2 225 289

2 3 . C A S H G E N E R AT E D F R O M O P E R AT I O N S


(Deficit) / surplus 8 323 663 4 992 281

Adjustments for:

Depreciation and amortisation 1 356 634 1 787 252

Loss (profit) on disposal of assets and liabilities - (64 316)

Impairment loss 1 779 20 336

Provision for doubtful debts 703 357 370 110

Movements in operating lease asset and accruals (800 113) (951 363)

Movements in retirement benefit assets and liabilities (239 892) (1 051 982)

Library books - (2 550)

Changes in working capital:

Receivables from exchange transactions 479 636 (68 497)

Movement in provision for doubtful debts (703 357) (370 110)

Other receivables from non-exchange transactions 3 000 000 (3 000 000)

Payables from exchange transactions 1 132 076 (1 452 743)

Unspent conditional grants and receipts (45 258) 2 187 305

13 208 525 2 395 723


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a s a t 3 1 M a r c h 2 0 1 9

2 4 . C O M M I T M E N T S F O R E X P E N D I T U R E S


Authorised expenditure

Operational expenditure

• approved and contracted 6 201 211 9 122 716

Capital expenditure

• Approved and contracted:Heritage Promotions 1 053 700 85 493

Total operational commitments

Operational expenditure 6 201 211 9 122 716

Capital expenditure 1 053 700 85 493

7 254 911 9 208 209

The following are commitments for a period longer than a year:

The entity appointed a AWCape for hosting, support and maintenance of Accpack ERP for 36 monthsThe entity appointed Club Travel to provide Travel Management Services for a period of 36 monthsThe entity appointed VOX to provide VOIP System for a period of 24 monthsThe entity appointed Sankofa Insurance Brokers to provide Insurance Services for a period of 36 monthssThe entity appointed Bokwe's Security Services to provide physical security services at SAHRA Head Office for a period of 36 monthsThe entity appointed SKG Properties to provide office space for Pretoria satellite office for a period of 5 yearsThe entity appointed SizweNtsalubaGobodo to provide Co-sourced Internal Audit Services for a period of 36 monthsThe entity appointed Life Occupational Health for Employee Wellness Service for a period of 24 monthsThe entity appointed The Water Cooporation to provide purified water for a period of 36 monthsThe Water Corporation - To provide purified water for 36 monthsThe entity appointed XEPA to provide drupal services for a period of 36 monthsThe entity appointed Pronto Kleen Cleaning Services for a period of 24 months to provide cleaning service at SAHRA Head OfficesThe entity appointed Vodacom for a period of 24 months to provide 3GsThe entity appointed Career Junction for a period of 24 months to provide online recruitment.The entity appointed First Technology (Pty) Ltd to provide Microsoft Office Licences for a period of 24 monthsThe entity appointed TSM Consulting to provide skills and psychometric assessment for a period of 36 Months on a needs basisThe entity appointed Infuno Distributors to supply and deliver office consumables for a period of 24 months.The entity appointed South African Electronic Tracking Systems Ltd for the supply and installation of tracking devices in all SAHRA vehicles for a period of 3 years.The entity appointed Zamil Engineers and Constructors for servicing, effecting necessary repairs and annual servicing

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of air conditioning systems at the SAHRA Head Office situated at 111 Harrington Street and 79 Roeland Street, Cape Town for a period of 24 months.The entity appointed Qamata Trading Projects to provide physical security services at Old Residency in King Williams Town for a period of 24 months.The entity appointed Fidelity ADT (Pty) Ltd for the installation and alarm mornitoring at the Pretoria Office for a period of 36 months.The entity appointed Smart Guard Monitoring (Trac-Tech) (Pty) Ltd for biometric time and attendance telephone support for a period of 36 months.The entity appointed Post Office for a period of 36 months to provide Courier Services.

The expenditure will be financed from Government Grants.

2 5 . C O N T I N G E N C I E S

The entity has requested permission to retain accumulated surpluses of R84 735 329 (2018: R76 411 668) for which approval is awaited from National Treasury.

The entity has present obligation of R5 379 for receivables in credit however it is not probable that the monies will be paid back. The entity also has a present obligation amounting R78 055 in respect of sundry payables which relates to a refund on provident fund contributions in prior years. The beneficiaries are no longer in the employ of SAHRA, due to unsuccessful efforts to locate the beneficiaries it is not probable that the money will be paid out.

A possible obligation exist due to a matter brought before the High Court by Midnight Storm Investments against the Minister of Arts and Culture where SAHRA has been listed as the fourth defendant on a matter relating to the expropriation of a property by Midnight Storm Investment. The matter has not been finalised at year end.


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2 6 . R E L AT E D PA R T I E S


Related party balances

Related party transactions

Unspent Conditional grants and receipts

Makapans (National Lottery fund) 2 102 652 2 004 181

Makgabeng (National Lottery fund) 1 124 611 1 059 203

Fire detection (The Department of Arts and Culture) 2 000 000 2 000 000

Operation Grant received

The Department of Arts and Culture 65 650 000 58 861 000

Department of Tourism

Restricted grant received 195 910 400 000

National Treasury

Revenue in Kind - 668 442

Finequity (Pty) Ltd

Interim CEO - Mr Thomas Kgokolo 972 566 602 990

CATHSSETA

Discretionary Grant 511 438 -

Relationships

Department of Ars and Culture

Controlling Department of the agency:

The Department of Arts and Culture is in debt to South African Heritage amount to R 116 000 relating to the project undertaken by South African Heritage on the Chief Tyali project in the Eastern Cape. The procurement of the service provider was done through the quotation process. An agreement between the Department of Arts and Culture and South African Heritage Resources Agency was entered into and had provision for refund of the project costs.

Agency of the department of Trade and IndustryNational Lotery Fund

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Department of TourismProject funder

National TreasuryFunding of Investigation

Finequity (Pty) LtdMr. Thomas Kgokolo was seconded by Finequity to South African Heritage Resources Agency for the position of the Interim Chief Executive Officer

CathsettaDiscretionary Grant and Mandatory Grant

The members of councill and the Executive as disclosed under Note 20 and the Interim CEO are related parties.

Fire DetectionThe project is between SAHRA and Department of Arts and Culture for the upgrade of fire detection alarm and sprinkler system as approved by the Director General on 02 March 2018.

Under the agreement, the money paid to SAHRA must be used for the specific purpose.

2 7 . P R I O R P E R I O D E R R O R S

27.1 General Expenditure

During the 2019 financial period it was identified that general expenditure of the 2017/18 financial period was not recognised due to limited information at the time and resulted in the understatement of the general expenditure by R 170 633 and the understatement of accruals and trade payables by R 78 392 and R 92 242 respectively. This was as a result of an understatement of an amount of R 78 392 which related to other vehicle expenditure and public function expenditure and the understatement of R 92 242 relating to the public functions expenditure and travel expenditure. The prior period was adjusted retrospectively. The effect of the error on the individual line items in the financial statements is the increase of general expenditure by an amount of R 170 633 and a corresponding increase in the accrual balance of R 92 242 and increase in trade payables of R 78 392.

27.2 Repairs and maintenance

During the 2019 financial period it was identified that general expenditure of the 2017/18 financial period was not recognised due to limited information at the time and resulted in the understatement of the general expenditure by R 10 773 and understatement of accruals by R 10 773. This was as a result of an understatement of an amount of R 10 773 which related to repairs and maintenance. The prior period was adjusted retrospectively. The effect of the error on the individual line items in the financial statements is the increase of repairs and maintenance of R 10 773 and a corresponding increase in the accrual balance of R 10 773.


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27.3 Revenue from non exchange Transaction

During the 2019 financial year it was identified that revenue from Government grants and subsidies of 2017/2018 financial period was not recognised due to limited information at the time and resulted in the under statement of revenue from Government grants and subsidies by R 1 000 000, understatement of unspent conditional grants and receipts by R 2 000 000 and the understatement of the sundry debtors balance by R 3 000 000. This was as a result of the Department of Arts and Culture providing the Allocation letters after the reporting date. The prior period was adjusted retrospectively. The effect of the error on the individual line items in the financial statements is the increase of revenue from Government grants and subsidies by R 1 000 000 and increase of unspent unconditional grants and receipts by R 2 000 000 in the prior year and increase in the sundry debtor by R 3 000 000.

Statement of Financial Performance for the year ended 31 March 2019

Balance as previously

reportedPrior period

errorRestated balance

Government grants and subsidies 57 861 000 1 000 000 58 861 000

General Expenditure -20 352 560 (170 633) (20 523 193)

Repairs and Maintenance -680 185 (10 773) (690 958)

818 594

Statement of Financial Position as at 31 March 2019

Liabilities

Current liabilities

Payables from exchange transactions (4 246 460) (181 406) ( 4 427 865)

Unspent conditional grants and receipts -3 751 825 (2 000 000) (5 751 825)

Assets

Receivables from non exchange transaction 3 000 000 3 000 000

818 594

2 8 . R I S K M A N A G E M E N T

Financial risk management

The entity’s activities expose it to a variety of financial risks including liquidity risk and credit risk.

Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, ensuring the availability of funding through an adequate amount of committed credit facilities, and the ability to close out market positions.

The entity’s risk to liquidity is the risk that funds are not available to cover future commitments. The entity manages liquidity risk through an ongoing review of future commitments and credit facilities. The entity manages cash flows, budgets and monthly management accounts.

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The table below analyses the entity’s financial liabilities into relevant maturity groupings based on the remaining period from the reporting date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

At 31 March 2019Less than 1

yearBetween 1

and 2 yearsBetween 2

and 5 years Over 5 years

Payables from exchange transactions 5 563 474 - - -

Unspent conditional grants and receipts 5 706 567 - - -

At 31 March 2018Less than 1

yearBetween 1

and 2 yearsBetween 2

and 5 years Over 5 years

Payables from exchange transactions 4 427 866 - - -

Unspent conditional grants and receipts 5 751 825 - - -

Other financial liabilities consist of trust liabilities where the entity is responsible for maintaining specific assets. There are no contractual dates included in these trusts; therefore, the maturity of these liabilities cannot reliably be included in the above table.

Credit risk

Credit risk is mitigated by the fact that the entity only deposits cash surpluses with major banks of high credit standing. The maximum exposure to credit risk at the reporting date is the bank balances as disclosed in the Statement Financial Position. The table below shows the credit rating and balances of the banks used by the entity.

Credit risk is mitigated through management’s assessment of the credit quality of debtors, taking into account their financial position, payment history and the perceived perception of the payment profile.

Financial assets exposed to credit risk at year end were as follows:


Trade and other receivables before impairment 1 358 385 806 708

Deposits 163 071 163 071

Cash and cash equivalents 47 598 120 35 649 791

The balance for Cash and cash equivalents includes actual cash on hand balance in 2019 of R6 500 and in 2018 a balance of R6 500.

Market risk

Interest rate riskThe entity’s interest rate risk arises from short - term deposits. Short - term deposits issued at variable rates expose the entity to cash flow interest rate risk. On the other hand, short-term deposits issued at fixed rates expose the entity to fair value interest rate risk. During 2019 and 2018, the entity’s deposits and bank balances at fixed rate were denominated in the Rand.


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Banks

ABSA (Baa2) 27 387 035 16 738 785

Nedbank (Baa2) 12 525 125 11 757 835

Reserve Bank 7 679 460 7 146 670

47 591 620 35 643 290

2 9 . F R U I T L E S S A N D W A S T E F U L E X P E N D I T U R E


Opening balance 233 011 12 200

Current year 4 204 220 811

Written off by the Acccounting Authority (236 132) -

1 083 233 011

Analysis of expenditure awaiting write off per age classification

Current year 1 083 220 811

Prior year - 12 200

1 083 233 011

Details of current year fruitless and wasteful expenditure

Interest on overdue accounts 4 204 220 811

Analysis of expenditure written off per age classification

Current year 3 120 -

Prior year 233 011 -

236 131 -

Details

Fruitless and wasteful expenditure amounting to R1 083 in the ter is waiting write-off; R233 011 incurred in the prior periods and R3 120 incurred in the current year were written by the Council in the current year.

R4 204 (100%) of fruitless and wasteful expenditure incurred in the current year relate to late payment penalty charges on payment of services. The investigation by the supply chain management unit revealed that this interest is due to late submission of invoice through the Post Office. This caused delays in finance unit receiving invoices for. Finance is currently negotiating with all Municipalities to rather email invoices to ensure that invoices are received and paid in time.

As a result of a full investigation done by the Supply Chain Management unit, recovery of the amounts is not possible and the process of writing off these amounts is currently underway.

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3 0 . I R R E G U L A R E X P E N D I T U R E


Opening balance 49 800 542 49 182 336

Add: Irregular Expenditure - current year 796 548 944 173

Less: Amounts condoned (874 775) (325 967)

49 722 315 49 800 542

Analysis of expenditure awaiting condonation per age classification

Current year 539 978 618 206

Prior years 49 182 337 49 182 336

49 722 315 49 800 542

Details of irregular expenditure – current year

Supply Chain Management processes not followed 539 978 766 978

Preferential points were not stipulated in the request for quotations - 177 195

Not advertised in the tender bulletin 256 570 -

796 548 944 173

Details

Included in the current amount of R796 548 is new irregular expenditure of R539 978 incurred in the current year emanating from variation orders in the amount of R67 562 at 14% variance for the additional work to ensure that the new office space complies with Health and Safety requirements and the server room complies to prescribed regulations. The initial amount was R472 416 (including VAT). Variation of orders against the original contract was dealt with in terms of paragraph 3.9.3 of National Treasury Instruction Note 32 of 2011and the total variations order were less than the 20% of the original construction amount of R472 416 however the, total expenditure incurred amounted to R539 978 which suggested that a competitive bidding process should have been followed

The remaining amount of R256 569 relates to an award made in the previous financial year and the award was condoned in the 2016/2017 financial year.


Analysis of expenditure condoned per age classification

Current year 256 570 325 967

Prior Years 618 205 -

874 775 325 967


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Details

The condoned irregular expenditure cases with amount of R 874 775 relates to the ongoing contracts which were awarded without following proper procurement processes in the prior year. Reasonable steps have been taken to confirm that such irregular expenditure did not result in any losses or damages to the entity and that the entity did obtain value from such a transaction and was condoned by Council. Council condoned the R874 775 having noted the disciplinary processes and subsequent resignation of the responsible official.

Investigations

The irregular expenditure of R49 million that relates to the contract awarded to the service provider in 2015 for the rehabilitation of Delville Wood memorial in France was condoned by the previous council. The Minister of Arts and Culture subsequently requested the current Accounting Authority to commission an investigation of the irregular expenditure relating to this contract and the Chief Executive Officer has since been dismissed.

3 1 . C H A N G E I N E S T I M AT E

Property, plant and equipment

Leasehold ImprovementA review of useful economic lives of leasehold improvements was performed during the year and management decided that due to the extention of the lease agreement for SAHRA Head Office in Cape Town, on which lease improvements have been effected on, the useful life be re-assessed from the initial 3 years to 6 years as at 1 April 2018. This resulted in a reduced depreciation charge of R50 947 for the year which is expected to recur over the remaining life of the lease agreement - a total of 8 tangible assets were identified which useful lives were revised.

The impact of this on the current period is as follows:

Depreciation: Leasehold Equipment

According to initial estimated useful life: R178 314

According to re-assessed useful life: R50 947

Decrease in depreciation: R127 367

Increase in retained earning: R127 367

The impact of this on the future periods is as follows:


Increase in retained earning: R127 367

Motor vehicles

A review of useful economic lives of tangible assets was performed during the year and management decided that due to the extention of the good service record of the MUCH Bakkie, the useful life be re-assessed from the initial 5 years to the total useful life of 10 years as at 1 April 2018. This resulted in a reduced depreciation charge of R43 477 for the

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year which is expected to recur over the remaining life of the lease agreement - Only 1 vehicle was identified which useful live was revised.

Depreciation: Motor Vehicles

According to initial estimated useful life: R85 395

According to re-assessed useful life: R43 477


The impact of this on the future periods is as follows:


3 2 . F I N A N C I A L I N S T R U M E N T S D I S C L O S U R E

Categories of financial instruments

2019

Financial assetsAt amortised

cost At cost Total

Receivables from exchange transactions (excluding rental debtors) 472 804 - 472 804

Receivables from exchange transactions ( rental debtors) - 1 187 1 187

Cash and cash equivalents 47 598 120 - 47 598 120

48 070 924 1 187 48 072 111

Financial liabilitiesAt amortised

cost Total

Other financial liabilities 2 863 956 2 863 956

Trade and other payables from exchange transactions 5 563 474 5 563 474

Unspent conditional grants 5 706 567 5 706 567

14 133 997 14 133 997

2018

Financial assetsAt amortised

cost At cost Total

Receivables from non exchange transactions (excluding rental debtors)

3 000 000 - 3 000 000

Receivables from exchange transactions (excluding rental debtors) 800 761 - 800 761

Receivables from exchange transactions ( rental debtors) - 152 866 152 866

Cash and cash equivalents 35 649 791 - 35 649 791

39 450 552 152 866 39 603 418


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Financial liabilitiesAt amortised

cost Total

Other financial liabilities 2 861 695 2 861 695

Payables from exchange transactions 4 427 866 4 427 866

Unspent conditional grants 5 751 825 5 751 825

13 041 386 13 041 386

3 3 . B U D G E T D I F F E R E N C E S

33.1 Differencesbetweenbudgetandactualamountsbasisofpreparationandpresentation

33.1.1 The variance is a result of lower number of permit being applied for as compare to the prior year

33.1.2 The variance is a result of less rental income collected from the investment properties and is attributed to the project of Property maximisation which was not completed in the current year as forecasted during the budget process

33.1.3 The variance is a result of other income which was forecasted to be received from the Department of Arts and culture which was however not received.

33.1.4 The variance is a result of flactuation of the balances on the bank account from which investment income is derived.

33.1.5 Deferred revenue indicate a variance between budget and actual as it relates to the recognition of the allocation of project revenue which was previously recognition as revenue in the year it was received, interms of budgeting the amount is recognised to allow for expenditure in line with the project expenditure however recognition on the statement of financial position occurred when the revenue was received.

33.1.6 The variance is a result of receipt of additional grant revenue for the Delville wood project

33.1.7 Personnel costs decreased due to delays in filling vacant funded positions as well as resignation which occurred after the budget was completed

33.1.8 The variance is in part due to the Change in accounting estimate as well as the asset addition which were not completed as anticipated during the budget preparation.

33.1.9 The movement in the provision for impairment of debtors is attributable to the performance of debtor payment performance, a higher provision was recorded corresponding to the non payment ratios noted on the debtors payment patterns.

33.1.10 The variance is a result of interest incurred on municipal account which was not budgeted for and is attributable to delay by strikes at the National Post office which resulted in delays in receipt of invoices.

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33.1.11 The variance noted on the repairs and maintenance line item was as a result of budgeting for the restoration of SAHRA`s properties under the property maximisation program which did not complete at year end, the restoration will continue into the 2019/2020 financial year.

33.1.12 General expenses decreased due to projects which were envisaged to be completed before year end but were not completed,the initial intention was to rehabilitate properties.

33.2 Changesfromtheapprovedbudgettothefinalbudget

Explanation on variances between budgeted amounts and final budget amount

33.2.1 The variance is a result of additional anticipated project revenue from Department of Arts and Culture

33.2.2 The variance is a result of the forecasted interest receipts from the bank accounts

33.2.3 The variance is a result of forecasted project activities.

33.2.4 The variance is a result of the anticipated filling of the vacant posts.

33.2.5 The variance is a result of the depreciation linked to the asset acquisition which was forecasted.

33.2.6 The result is a result of the adjustment to the project activities which were planned including the Deville Wood project

33.3 Differencesbetweenbudgetcashflowandactualactualcashflowamounts

33.3.1 The variance is a result of additional grant revenue received relating to the project activities.

33.3.2 The Interest income cashflow variance between the budgeted and actual amount is the result of the actual interest income exceeding budget amounts mainly because of the source of the interest which is the entity`s bank accounts. during the budget process expectations were that the projects relating to the renovations and restoration of properties would be completed during the year, when these projects did not complete additional interest income was earned in the bank accounts

33.3.3 Deferred income is based on the budgeted project activities whose actual receipts occurred in previous years therefore the actual amount reflect no movement as the amount is in the bank account and accounted for as receipts in prior years.

33.3.4 The variance on other cash receipts related to the rental collections

33.3.5 Personnel costs decreased due to delays in filling vacant funded positions as well as resignation which occurred after the budget was completed

33.3.6 General expenses decreased due to projects which were envisaged to be completed before year end but were not completed, the initial intention was to rehabilitate properties


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33.3.7 The variance is a result of interest incurred on municipal account which was not budgeted for and is attributable to delay by strikes at the National Post office which resulted in delays in receipt of invoices

33.3.8 The actual cash flow on the purchase on property plant and equipment relates to the acquisition of movable assets during the 2017/2018 financial year , the budget amount relates to activities which are project in nature which did not complete during the year.

33.3.9 The variance is due to the acquisition of intangible assets

3 4 . R E V A L U AT I O N R E S E R V E


Opening balance 25 530 604 25 530 604

3 5 . E V E N T S A F T E R R E P O R T I N G D AT E

Non adjusting events after the reporting date

The historic Non-Pareille farmhouse in Roggeland in Paarl was destroyed by fire on 29 June 2019. This property forms part of the investment property under Dal Josfat property.

The extent of the damage could not be ascertained due to the nature of the property, timing and expertise required. The estimate of the financial effect can not be made

The financial statements are authorised for issue on 31 July 2019 by (Prof) Susan Bouillon.

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S O U T H A F R I C A N H E R I TAG E R E S O U R C E S ( S A H R A )

PHYSICAL ADDRESS: 111 Harington Street, Cape Town, 8000POSTAL ADDRESS: P.O. Box 4637, Cape Town, 8000TELEPHONE NUMBER: +27 (0) 21 21 468 4502WEBSITE ADDRESS: www.sahra.org.za

RP434/2018ISBN: 978-0-621-46934-9

Documents

SOUTH AFRICAN HERITAGE RESOURCES AGENCY ••ANNUAL … · HRM Heritage Resources Management ICT Information Communication and Technology IMP Integrated Management Plan LoA Letter