1.4 Employee benefits Short‑term employee benefits The cost of short‑term employee benefits, (those payable within 12 months after the service is rendered, such as leave pay and sick leave, bonuses, and non‑monetary benefits such as medical care), are recognised in the period in which the service is rendered and are not discounted. 1.5 Government grants Grants that do not impose specified future performance conditions are recognised in income when the grant proceeds are receivable. Grants that impose specified future performance conditions are recognised in income only when the performance conditions are met. Grants received before the revenue recognition criteria are satisfied are recognised as a liability. Grants are measured at the fair value of the asset received or receivable. 1.6 Revenue Revenue is recognised to the extent that the organisation has transferred the significant risks and rewards of ownership of goods to the buyer, or has rendered services under an agreement provided the amount of revenue can be measured reliably and it is probable that economic benefits associated with the transaction will flow to the organisation. Revenue is measured at the fair value of the consideration received or receivable, excluding sales taxes and discounts. Interest is recognised, in profit or loss, using the effective interest rate method. 51
Notes to the Annual Financial Statements 2020 2019 Figures in Rand 2. Property, plant and equipment 2020 2019 Cost or Accumulated Carrying Cost or Accumulated Carrying revaluation depreciation value revaluation depreciation value 169 076 188 967 Furniture and fixtures 198 913 (29 837) 12 705 198 913 (9 946) – Office equipment 12 920 (215) 51 074 – – 69 363 IT equipment 95 844 (44 770) 232 855 83 236 (13 873) 258 330 Total 307 677 (74 822) 282 149 (23 819) Reconciliation of property, plant and equipment – 2020 Additions Depreciation Closing balance Opening balance Furniture and fixtures 188 967 – (19 891) 169 076 Office equipment – 12 920 (215) 12 705 IT equipment 12 609 51 074 69 363 (30 898) 25 529 232 855 258 330 (51 004) Reconciliation of property, plant and equipment – 2019 Additions Depreciation Closing Opening balance balance Furniture and fixtures – 198 913 (9 946) 188 967 IT equipment – 83 235 (13 872) 69 363 – 282 148 (23 818) 258 330 3. Trade and other receivables 24 500 19 500 – 52 621 Deposit paid – 4 500 Other receivable Trade receivables 24 500 76 621 4. Prepayments 27 625 29 567 27 625 29 566 Prepayment Split between non‑current and current portions Current assets 52
5. Cash and cash equivalents 194 694 59 673 505 911 1 266 919 Cash and cash equivalents consist of: 700 605 1 326 592 Cheque account Investment account 6. Trade and other payables 204 301 282 870 1 500 – Trade payables Deposits received 205 801 282 870 7. Provisions Opening Additions Total balance 175 000 175 000 Reconciliation of provisions – 2020 – Provision for assessors 32 000 2 087 8. Revenue 496 957 60 130 4 055 925 4 249 250 Candidate EAP application 66 919 EAP application fees 72 321 Government grants 4 378 386 Interest received 4 657 203 9. Operating (loss) profit Operating (loss) profit for the year is stated after accounting for the following: Operating lease charges 244 974 164 200 Premises 23 818 • Contractual amounts 261 537 Depreciation on property, plant and equipment 51 004 Employee costs 1 417 046 10. Employee cost 1 412 358 261 537 4 688 – Employee costs Basic 1 417 046 261 537 WCA ‑ COIDA 53
11. Depreciation, amortisation and impairments The following items are included within depreciation, amortisation and impairments: Depreciation 51 004 23 818 Property, plant and equipment 12. Taxation (501 079) 1 455 251 (140 302) 407 470 Reconciliation of the tax expense Reconciliation between accounting profit and tax expense. 24 503 21 275 Accounting (loss) profit Tax at the applicable tax rate of 28% (2019: 28%) 13. Auditors’ remuneration Fees 14. Cash (used in) generated from operations (501 079) 1 455 251 (Loss) profit before taxation 51 004 23 818 Adjustments for: 175 000 – Depreciation and amortisation Movements in provisions 52 121 (76 621) Changes in working capital: 1 942 (29 567) Trade and other receivables (77 069) 183 295 Prepayments Trade and other payables (298 081) 1 556 176 15. Categories of financial instruments Debt Financial Equity and non– Total instruments at liabilities at financial assets Note(s) amortised cost amortised cost and liabilities 232 855 Categories of financial instruments – 2020 2 – – 232 855 300 694 Assets 24 500 Non‑Current Assets 27 625 700 605 Property, plant and equipment 1 053 424 1 286 279 Current Assets – – 300 694 Current tax receivable 3 24 500 –– Trade and other receivables 4– – 27 625 Prepayments 5 700 605 –– Cash and cash equivalents 725 105 – 328 319 Total Assets 725 105 – 561 74 54
Debt Financial Equity and non– Total instruments at liabilities at financial assets Note(s) amortised cost amortised cost and liabilities 905 478 905 478 Equity and Liabilities Members’ interest and reserves 205 799 175 000 Equity Attributable to Equity Holders of Parent: 6 –– 905 478 380 799 Accumulated profit 7 –– 905 478 380 799 1 286 277 Total Members’ interest and reserves – 205 799 – –– 175 000 258 330 Liabilities Current Liabilities 76 621 Trade and other payables 29 567 Provisions 1 326 592 1 432 780 – 205 799 175 000 1 691 110 Total Liabilities – 205 799 175 000 1 406 557 1 406 557 Total Equity and Liabilities – 205 799 1 080 478 1 683 Categories of financial instruments – 2019 2 – – 258 330 282 870 Assets 284 553 Non‑Current Assets 3 76 621 –– 284 553 Property, plant and equipment 4 – – 29 567 1 691 110 5 –– Current Assets 1 326 592 Trade and other receivables Prepayments Cash and cash equivalents Total Assets 1 403 213 – 29 567 1 403 213 – 287 897 Equity and Liabilities Members’ interest and reserves Equity Attributable to Equity Holders of Parent: – – 1 406 557 Accumulated profit – – 1 406 557 Total Members’ interest and reserves Liabilities Current Liabilities – – 1 683 Current tax payable Trade and other payables 6 – 282 870 – – 282 870 1 683 Total Liabilities – 282 870 1 683 Total Equity and Liabilities – 282 870 1 408 240 55
Detailed Income Statement Note(s) 2020 2019 8 Figures in Rand 13 32 000 2 087 496 957 60 130 Revenue 4 055 925 4 249 250 Candidate EAP application 66 919 EAP application fees 72 321 Government grants 4 378 386 Interest received 4 657 203 – Cost of sales (324 894) Purchases 4 378 386 4 332 309 (2 923 135) Gross profit (4 833 388) Expenses 1 455 251 (501 079) (Loss) profit for the year (234 096) (315 000) (320 832) Operating expenses (312 343) Accounting fees (24 503) (21 275) Advertising (12 676) (4 273) Auditors remuneration (319 063) (427 532) Bank charges (20 381) Board meeting – (11 009) Cleaning (30 110) (23 818) Computer expenses (51 004) Depreciation (19 336) – Dues & subscriptions (1 417 046) (261 537) Employee costs (111 334) (46 712) Conference fees (1 490) Gifts (301 329) (870) Honorariums (18 606) (372 310) Insurance (156 684) Legal expenses (20 676) (4 860) Meals and refreshments (49 800) (49 746) Municipal expenses (118 028) (6 248) Online system – Monthly SLA (179 711) (24 938) Online system –‑ Research costs (25 938) (150 531) Parking (13 312) Postage (87) (16 606) Printing and stationery (49 770) (2 298) Registrar services (32 466) Rent – (463 565) Secretarial & governance (244 974) (164 200) Small assets (80 027) (66 685) Staff amenities (16 881) Staff welfare (4 098) (6 469) Telephone and fax – Training – Travel ‑ Local (36 721) (70 453) Website maintenance (79 195) (765 661) – 56 (80 639) (78 354) (7 539) (10 878) (4 833 388) (2 923 135)
ADDENDUM
EAPASA’s Black Economic Empowerment Preferential Procurement Report for the period 1 March 2018 to 29 February 2020 This report measures the organisation’s BBBEE status against the Code of Good Practice on Broad Based Black Economic Empowerment gazetted on 9 February 2008. All the sources of information have been obtained through the financial recording software and certificates provided by the respective suppliers/service providers. This report focuses solely on the aspect of Preferential Procurement. Notes to the report The report presented is for the period 1 March 2018 to 29 February 2020, reporting on procurement spend in the organisation for the above mentioned period, as shown below. We wish to highlight that almost half of the spend on Level 4 is due to rental payments for EAPASA’s Centurion office. It is our aim to improve this percentage. However, due to a signed lease, it is improbable to achieve a better rating than Level 4 for this monthly expense. EAPASA BEE Spend – March 2018 to February 2020 2019 2020 2019 2020 NO OF SERVICE NO OF SERVICE BEE % SPEND BY SERVICE SPEND BY SERVICE % CATEGORY PROVIDERS PROVIDERS INCREASE PROVIDERS PROVIDERS INCREASE Level 1 18 49 Level 2 2 3 172% 1,031,082 1,676,574 63% Level 3 1 3 50% 367% Level 4 12 33 200% 161,445 753,798 2363% 33 88 175% 45% 9,288 228,798 433,313 629,140 1,635,128 3,288,309 BEE – Number of Service Providers 60 Level 2 Level 3 Level 4 50 2020 40 2019 30 20 10 0 Level 1 BEE – Spend by Service Providers 2,000,00 1,000,00 0 Level 1 Level 2 Level 3 Level 4 2020 2019 58
CODE OF ETHICAL CONDUCT AND PRACTICE All EAPs must: 99 Carry out their professional activities in compliance with relevant environmental legislation and, as far as reasonable and practical, in accordance with principles of sustainable development. 99 At all times, place the integrity of the environment, including conservation and long-term sustainable use of the biophysical environment, and the social welfare, health and safety aspects of the socio-economic environment, above any commitment to sectional or private interests. 99 Advise the incorporation of environmental considerations from the earliest stages of policy, plan, programme or project conception or development. 99 Not conduct professional activities in a manner involving dishonesty, fraud, deceit, misrepresentation or bias. 99 Not neglect or subvert good professional practice in order to secure personal gain or attempt to injure the reputation or opportunities for employment of another Environmental Assessment Practitioner by false, biased or undocumented claims or accusations, by any other malicious action, or by offers of gifts or favours. 99 Clearly differentiate between facts and opinions in their work. 99 To the best of their ability, keep informed of advances in environmental assessment practice, and integrate such knowledge into their professional activities. 99 Inform a prospective client or employer of any professional or personal interests which may impair the objectivity or impartiality of their work. 99 Not undertake, review or make decisions based on environmental assessment work where they have a vested or other financial interest in decisions or actions that may arise from the assessment, whether in public or private employ. 99 Use the best available information. Where enough relevant and reliable information cannot be obtained, this deficiency must be explicitly stated in the findings or the review of an environmental assessment, in terms of any assumptions and limitations in the environmental assessment or review, the risks to the environment, levels of confidence in predictions, and implications for decision making of information deficiencies. 99 Take responsibility for the findings or review of the environmental assessment for which they are responsible. (It is noted that the Environmental Assessment Practitioner cannot be held responsible for decisions made by other parties, purportedly based on the findings of the environmental assessment or review.) 99 Conduct professional activities, as far as appropriate, in an interdisciplinary manner and recognise the need to collaborate with suitably qualified persons in subject areas where they are relatively inexperienced or unspecialised. 99 Undertake particular environmental assessment work in a position of responsible charge where they are competent to do so. This must be applied without impediment of transformation or prejudice in accessing work opportunities in new fields. 99 Not advertise their professional services in a self-laudatory manner or in a manner that may discredit the profession. 99 Not misrepresent or allow or permit misrepresentation of their own or their associates’ academic or professional qualifications or exaggerate their degree of responsibility for any work of a professional nature. 99 Actively discourage misrepresentation or misuse of work carried out by them or performed under their direction. 99 Undertake ‘in-house’ environmental assessment work in a manner that ensures the ‘in-house’ EAPs work is subject to review by an independent EAP, where an EAP is employed by an organisation that is either the proponent of development or stands to benefit directly from development proposed by an outside party. 99 Demonstrate commitment to the purpose and objectives of the Association and comply with the provisions of the EAPASA Constitution and any Rules of the Association. 99 Conduct her/his work at the highest possible standard reasonably to be expected from a professional in that position. 59
Unit 19 Oxford Office Park 3 Bauhinia Street Highveld Techno Park Centurion 0157 Tel: +27 (0) 12 880 2154 E-mail: [email protected] www.eapasa.org
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