MARINA DA GAMA ASSOCIATION ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2019Marina da Gama Association ‘Annual Financial Statements for the year ended 28 February 2018 General Information Country of incorporation and domicile South Africa Nature of business and principal activities Managing the collective interests common to all homeowner members atthe Marina da Gama Excom members P. allen J. Ftepatrick L.Gafoor A. Hemp P. Laubscher . Midgley Li Moko ©. Philip T. Queleh Registered office ‘Shop 7, Eastlake Village Centre Eastiake Drive Eastiake Island Marina da Gama 7945 Postal address P.O. Box 121 Muizenberg 7945 Bankers Standard Bank of SA Limited Independent auditors BDV Platinum Chartered Accountants (SA) Registered AuditorsMarina da Gama Association Annual Financial Statements for the year ended 28 February 2018 Index ‘The reports and statements set out below comprise the annual financial statements presented to the Excom members: Index Pago Excom Members’ Responsiites and Approval 3 Independent Auctor's Report 45 Executive Committee's Report 6 Statement o Financial Position 7 Statement of Comprehensive Income 8-9 Statement of Changes in Reserves 10 Statement of Cash Flows " ‘Accounting Policies 12-13 Notes to the Annual Financial Statements 14-16 Level of assurance ‘These annual financial statements have been audited in compliance withthe applicable requirements of the Association's Constitution and Section 28 of the Land Use Planning Ordinance, 1985 (Ordinance 15 of 1985).Marina da Gama Association ‘Annual Financial Statements forthe year ended 28 February 2019 Excom Members’ Responsibilities and Approval The Executive Committee ("Excom’) are required to maintain adequate accounting records and are responsible forthe content and integrity of the annual financial statements and related financial information included in this report. It is their responsiblity, to ensure that the annual financial statements fairly present tho stato of affars of the association as at the end of the financial year and the results ofits operations and cash flows for the period then ended, in conformity with the basis of accounting as set fut in Note 1 to the financial statements. The extemal auditors are engaged to express an independent opinion on the annual financial statements. ‘The annual financial statements are prepared in accordance with the basis of accounting as set out in Note 1 to the financial statements and are based upon appropriate accounting policies consistently applied and supported by reasonable and prudent judgments and estimates. Excom acknowledges that they are ultimately responsible for the system of intemal financlal control established by the association and place considerable importance on maintaining a strong control environment. To enable Excom to meet these responsibilities, Excom sets standards for intemal control aimed at reducing the risk of error or loss in a cost effective manner. ‘The standards include the proper delegation of responsibilties within a clearly defined tramework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the association and all employees are required to maintain the highest ethical standards in ensuring the association's business is conducted in a manner that in all reasonable circumstances is above reproach. The focus of risk management in the association is on identifying, assessing, managing and monitoring all known forms of risk across the association. While ‘operating risk cannot be fully eliminated, the association endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints, Excom 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 annual financial Statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or loss. In light of the current financial position, Excom is satisfied that the association has, or has access to, adequate resources to continue in operational existence for the foreseeable future. The extemal aucitors are responsible for independently auciting and reporting onthe association's annual fhancial statements ‘The annual financial statements have been examined by the association's external auditors and thelr report Is presented on page 4 The annual financial statements set out on pages 6 to 16, which have been prepared on the going concern basis, were approved by Excom and were signed on their behalf by: Approval of annual financial statements 1 Qs Tedbien TPhiip 24-05-2019 28)esha\9 DateCHARTERED ACCOUNTANTS (SA) Independent Auditor's Report Auditor's responsibilities for the audit of the Annual Financlal Statements ur objectives are to obtain reasonable assurance about whether the annuel 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 our opinion. Reasonable assurance is a high level of assurance, but is not @ guarantee that an aualt conducted in accordance with International Standards on Auciting will always detect a material misstatement when it exists. Misstatements can arise from fraud or etror land are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic. decisions of users taken on the basis of these annual financial statements. ‘As part of an audit in accordance with international Standards on Auditing, we exercise professionel judgement and maintain professional scepticism throughout the audit. We also: + Identify and assess the risks of material misstatement of the annual 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 our 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, mmisrepresentations, or the override of internal contol + Obtain an understanding of intemal control relevant to the audit in order to design aualt procedures that are ‘appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the association's internal control. + Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Excom, + Conclude on the appropriateness of the Excam’s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the association's abilty to continue as a going concem. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosures in the annual financial statements or, if such disclosures are inadequate, to modify our opinion, Our conelusions are based on the aucit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the association to cease to continue as a going concern. + Evaluate the overall presentation, structure and content of the annual financial statements, including the disclosures, and whether the annual financial statements represent the underlying transactions and events in a ‘manner thai achieves far presentation. We communicate with Excom regarding, among other matters, the planned scope and timing of the audit and significant ‘audit findings, including any significant deficiencies in internal control that we identity during our audit. BDV Platinum Date Director - Braam Do Vries Chartered Accountants (SA) Registered Auditors: ny Reg No: 20%" 2e7aRe4 |VAT Ne: 4140184044 49 Bel Croscers, | Weatnce Susnass Part | Weatie 7245 PO Box 31408 | Tos! 7885 | Emall acrineacvpatrum oom Telephone: 021 70% 7620 | Fax: O38 SOS BS72 | Webs wow olen car Director: Core our de ries, Mask Smoother. Nereis Were 6Marina da Gama Association ‘Annual Financial Statements forthe year ended 28 February 2019, Executive Committee's Report Excom submits their report for the year ended 28 February 2019. 1. Review of activities ‘Main business and operations The association is engaged in managing the collective interests common to all homeowner members at the Marina da Gama ‘and operates principally in South Africa, ‘The operating results and state of affairs of the association are fully set out in the attached annual financial statements and do ‘ot in our opinion require any further comment. Net surplus of the association was R226,088 (2018: surplus 108,918), after taxation of R4,274 (2018: R2,507) 2. Going concern ‘The annual financial statements have been prepared on the basis of accounting policies applicable to a going concem. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilties, contingent obligations and commitments will occur in the ordinary course of business. 3. Events atter the reporting period Excom is not aware of any matter or circumstance arising since the end of the financial year that has a material impact on the annual financial statements. 4. Subscriptions Contributions paid by members and interest eared during the year were sufficient to meet expenditure, resulting in subscription surplus of R 226,068 (2018: F 108,918), 5. Excom members ‘The members of Excom during the financial year are as follows: Name ‘Area Date of appointment Date of resignation Attendance P. Al Eastlake 1/10/2018 45 R. Carlisle Park 05/08/2017 1)os/2018 18 J. Fitzpatrick Eastlake 29/08/2015 10112 L. Gator Utsig 25/07/2016 ana G. Goldblatt Eastlake Prior to 29/06/2015 11/09/2018 5” A-Hemp Uitsig 25/07/2016 son2 T. Joubert Park Prior to 29/06/2015 11/06/2018 3/3 P. Laubscher Eastlake 11/08/2018 19/03/2018 ae Midgley Eastlake 15/01/2019 22 Li Moko: Uitsig 11/osr2018 5/8 Philip Eastlake 2o/o6/2015 aie T: Quelch Park. 05/08/2017 sie N. Thompson-Evans Eastlake 05/08/2017 1yo6/2018 3 6 Auditors BDV Platinum will continue in office for the next financial period with the approval of the members at the ennual general ‘meeting of members.Marina da Gama Association ‘Annual Financial Statements for the year ended 28 February 2019, Statement of Financial Position as at 28 February 2019 Figures in Rand Noies)___2078 2018 Assets Non-Current Assets Property, plant and equipment 2 21,001 : Currant Assets ‘Subscriptions receivable 3 79,095 65,270 Other receivables 4 1,450 1,450 Cash and cash equivalents 5 768,959 663,035, 48,008 —_729,755 Total Assets 869,005 728,755, Equity and Liabilities ‘Owners’ funds and reserves Reserves 482,520 598,100 ‘Accumulated surplus 300,519 74,451 783,039 672,651 Liabilities Current Liabilities ‘Trade and other payables 8 75,705 50,317 Current tax payable 1,161 6887 26,066 57,208 Total Equity and Liabilities 369,905 729,755Marina da Gama Association ‘Annual Financial Statements forthe year ended 28 February 2019 Statement of Comprehensive Income Figures in Rand Note(s) 2019 2018 Revenue Members’ subscriptions 763,917 825,207 763,917 525,297 Other income ‘Administration fees 3,900 250 Advertising income 15,938 13,118 Interest received 45,995, 42,596 ther income : 4,000 65,033 59,264 Total income 829,750 684,497 Operating expenses ‘Administration and sundries. ‘AGM and special meeting expenses 6,845 12,489 Asses less than R7 000, 4,500 : ‘Auditing and bookkeeping fees 18,586 10,350 Bad debts provision 73,328 22,905 Bank charges 11,188 9,122 SOS expenses 250 3,692 Cleaning 635, 530 Committee meeting expenses : 750 Computer and office equipment expenses 3447 46 Debt collection commission 25,333 4,865 Depreciation 4,105 978 General expenses 2,680 - Gitts and donations 728 Insuranes 7A77 4,037 Legal expenses - Rezoning 44,000 43,800 Legal expenses - Standard - 3472 Legal expenses - recovered from members (61,736) - Newsletters - Design and printing 45,017 27,944 Printing, stationery and postage 8,681 4,482 Professional fees - other 665, Rent of office and storeroom 61,243 58,647 Security monitoring 37,149 1,944 Social activities 5435 9,225 Telephone, fax, internet and survey 13,167 12,770 310,565 292,676 Employee costs Employee costs - salaried statt 214,108 164,696 214103 164,696 Municipal charges Electricity 3,500 1,800 3,500 1,800Marina da Gama Association ‘Annual Financial Statements forthe year ended 28 February 2019, Statement of Comprehensive Income Figures n Rand Note(s) 2018 2018 Repairs and maintenance Office 4,150 1,490 Parks labour 50,684 54,780 Parks materials 3612 7,895 Property : 2,443 Security upgrades 2 7,286 Waterways 4825 - 63,241 73,894 ‘Total operating expenses 599,409 473,086 Surplus before taxation 230,841 111,425 Taxation 10 (4.274) (2,807) ‘Surplus for the year 226,067 108,918Marina da Gama Association ‘Annual Financial Statements forthe year ended 28 February 2019, Statement of Changes in Reserves Trcheom —Secuy capex Teal eserves Rovurruaied “Toil owners deposits reserve fund surplus funds and Figures in Rand reserve fund reserves Balance at 01 March 2017 193,150 + 193,160 315,533 508,683 ‘Surplus forthe year 5 > 108.878 108,918 Surplus for the year : : = 108,918 108,918 Transferred from Archcom deposits liabiliy 54,950 p 54,950 54,950 Transfer from accumulated surplus to 960,000 380,000 (350,000) - secutity capex reserve fund Total changes 54,950 950,000 404,050 (850,000) _—64,050 Balance at 01 March 2018 248,100 350,000 698,100 74451 672,561 ‘Surplus or the year 5 = 226,068 Surplus for the year : 5 : 226,068 Transferred from Archcom deposits lability 8,800 5 900 8,800 Security equipment purchased = (124,480) (124,480) (124,480) Total changes 8,900__(124,480) = (195,580) Balance at 28 February 2019 257,000 225,50 300519 783,039 Note(s) 6 7 10Marina da Gama Association ‘Annual Financial Statements for the year ended 26 February 2019 Statement of Cash Flows Figures in Rand Notes) 2078 2018 Cash flows from operating activities Cash generated trom operations 12 243,010 78,276 Tax received 13 - 1 Net cash from operating activities 243,010 78,277 Gash flows from investing activiti Purchase of property, plant and equipment 2 (22,108) : Cash flows from financing activities Movement in archcom deposits 8,900 15,250 Security equipment purchased (124,480) : Net cash from financing activities (175,580) 15,250 Total cash movement for the year 105,324 93,527 Cash at the beginning of the year 663,035 569,508, Total cash at end of the year 5 768,359 663,035, 1"Marina da Gama Association ‘Annual Financial Statements forthe year ended 28 Februaty 2019 Accounting Policies 1. Basis of preparation and summary of significant accounting policies The annual financial statements have prepared on the historical cost basis and in accordance with generally accepted ‘accounting practice applicable to associations and in the manner required by the rules of the association and incorporate the following principal accounting polices. They are presented in South Alrican Rands. These accounting policies are consistent withthe previous period. 1.1 Property, plant and equipment Property, plant and equipment is intially measured at cost and subsequently stated at cost less accumulated depreciation and ‘any accumulated impairment losses, except for land which is stated at cost less any accumulated impairment losses Depreciation of an asset commences when the asset is avallable for use as intended by management. Depreciation is charged to wnite off the assets carrying amount over its estimated useful life to its estimated residual value, using a method that best reflects the pattem in which the asset's economic benefits are consumed by the association. ‘The useiul lives of items of property, plant and equipment have been assessed as follows: tem Depreciation method Average usefull inigation and gardening equipment ‘Straight tne years Office furniture Straight line 6 years ‘Sound equipment Straightline 5 years The depreciation charge for each period is recognised in surplus or deficit unless itis included in the carrying amount of another assel, 1.2 Subscriptions receivable Subsorigtions receivable are italy and subsequertly measured at cost, lass provisions for bad and doubtful debis. 1.3. Other recelvables (Other recelvabes are intaly and subsequently measured at cost. 41.4 Cash and cash equivalents Gash and cash equivalents comprise cash on hand and demand deposits intially and subsequently recorded at cost and are ot revalued, 1.5. Trade and other payables ‘Trade and other payables are intially and subsequently measured at cos, 1.6 Capital and other reserves AA the discretion of Excom, a certain portion of the surplus in each year is transferred to reserve accounts. These funds are set aside for future expenditure and are represented by the surplus cash of the association, During the year, income and expenditure transactions which relate to the reserve accounts are posted directly to the reserve accounts. Al the end of the year Excom makes a decision regarding final transfers to / from the Income statement and Accumulated surplus to trom the Reserve accounts including transfers between Reserve accounts, 17 Tax Current tax assets and liabilities Current tax for current and prior periods is, to the extent unpald, recognised as a labilly. I the amount already paid in respect, of current and prior periods exceeds the amount due for those periods, the excess is recognised as an asset. ‘The tax liability reflects the effect of the possible outcomes of a review by the tax authorities. 12Marina da Gama Association ‘Annual Financial Statements forthe year ended 28 February 2019 Accounting Policies 1.7 Tax (continued) ‘Tax oxponses ‘The association is taxed in terms of section 10(1)(e) of the Income Tax Act, 1962. In terms of this section, levy income and. recoveries are fully exempt. All other income is exempt up to a maximum of 50,000 per annum. Therefore, taxation is calculated and provided for on investment income and other income greater than’ RS0,000 per annum less a portion of deductible administrative expenses. 1.8 Revenue Revenue is recognised on an invoice basis. Revenue consists mainly of members’ subscriptions which are used to manage the township. Interest is recognised, in surplus or deficit, using the effective interest rate method. (Other income Is recognised in surplus or deficit on receipt. 1.9 Expenses Expenses represent all of the administration, operating and management expenses for the association and are recognised on an accrual basis. 13Marina da Gama Association Annual Financial Statements forthe year ended 28 February 2019 Notes to the Annual Financial Statements Figures in Rand 2018 2018 2. Property, plant and equipment 2018 2018 Cost or Accumulated Carrying value Costor _ Accumulated Carrying value revaluation depreciation revaluation depreciation irigation and gardening 37,288 (16,287) 21008 75,162 (15,162) equipment Office turniture 8,327 (6,327) : 3327 (8,927) ‘Sound equipment 7145 7.148) s 71485 7148) Total 52,740 (81,739)___—_27,001 30,638 (30,634) i Reconciliation of property, plant and equipment - 2019 Opening Additions Depreciation Closing balance balance Inigation and gardening equipment E 22,106 (1,105) 21,001 Reconciliation of property, plant and equipment - 2018 Opening Depreciation Closing balance balance ‘Sound equipment 878 (e738) : 3. Subscriptions receivable Comprise outstanding subscriptions for: 2oiei20ie 2017/2018 2016/2017 Prior years Less: Provision for bad and doubtful debts 2018/2018 2017/2018 2016/2017 Prior years 79,095, 65,270 ‘The provision for bad and doubtful debts has been determined by reference to the amounts stl outstanding as at 31 March 2018 in respect of the above years subscriptions. The write off to bad debts in the statement of comprehensive income has been determined by reference to the adjustment required to the provision for bad and doubtful debts account 4, Other receivables Deposits 1,480 1,480Marina da Gama Association ‘Anal Financial Statements forthe year ended 28 Februsty 2019, Notes to the Annual Financial Statements Figures in Rand 2018 2018 5. Cash and cash equivalents Cash and cash equivalents consist of: Cash on hand 2,007 424 Current account 4582 6,258 Money market call account 498,988 468,207 Marketlink call account - Archcom deposits reserve fund 272,762 188,118 768,359 663,095 6. Archcom deposits reserve fund Opening balance 248,100 193,150 ‘Transferred to reserve during the year 8,900 54,950 Glosing balance 257,000 248,100 7. Security capex reserve fund Opening balance 350,000 - ‘Transferred from accumulated surplus - 350,000 Security equipment purchased (124,480) : Closing balance 225,520 350,000 8, Trade and other payables ‘Subscriptions received in advance 59,543 48,755 SSL. security cameras 3,730 3,490 Accrued expenses 12,432 132 75,705, 50317 8. Archcom deposits Deposits outstanding at end of February 248,100 Less: Unclaimed deposits written back to reserve fund + in respect of prior years + in respect of current year + current portion written back to reserve fund (248,100) 723,160 15,250} Included in current abilities ‘The archcom deposits liabilly was transferred to the archcom deposits reserve fund in the previous financial yeer. 10. Ta ‘Major components of the tax expense South African normal tax - year 4274 2,507 11. Auditor's remuneration Fees 12,305 6.840 8Marina da Gama Association ‘Annual Financial Statements for the year ended 26 February 2018 Notes to the Annual Financial Statements Figures in Rand 2018 2016 12. Cash generated from operations Surplus before taxation 290,342 © 111,425, Adjustments for: Depreciation 4,108 e78 Changes in working capital: Subscriptions receivable (13,824) (31,070) Other receivables : 2248 “Trade and other payables 25,387 6.208) 243,010 78,276 13, Tax refunded Balance at beginning of the year (6,987) Current tax for the year recognised in surplus or detiit (4.274) Balance at end of the year 11,161 14, Marina News ‘Marina da Gama Association has a newsletter called the Marina News which is distrlouted to members. The association generates advertising income from the newsletter which Is included in revenue, 16