ANNUAL REPORT 2017 - 2018

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TABLE OF CONTENTS

SUBMISSION OF ANNUAL REPORT ...... 3

PART A GENERAL INFORMATION

1. PUBLIC ENTITY’S GENERAL INFORMATION ...... 5

2. LIST OF ABBREVIATIONS/ACRONYMS ...... 6

3. STRATEGIC OVERVIEW ...... 7

4. LEGISLATIVE MANDATES ...... 8

5. ORGANISATIONAL STRUCTURE ...... 9

6. FOREWORD BY THE CHAIRPERSON ...... 10

7. CHIEF EXECUTIVE OFFICER’S OVERVIEW ...... 11

PART B PERFORMANCE INFORMATION

1. STATEMENT OF RESPONSIBILITY FOR PERFORMANCE INFORMATION...... 14

2. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES ...... 15

3. PERFORMANCE INDICATION BY PROGRAMME ...... 16

4. PROGRAMME 1 – ADMINISTRATION ...... 16

5. SUB PROGRAMME 1.1 - OFFICE OF THE CEO ...... 16

6. PERFORMANCE INDICATORS AND ANNUAL TARGETS ...... 17

7. SUB PROGRAMME 1.2 - FINANCIAL MANAGEMENT ...... 18

8. SUB PROGRAMME 1.3 - HUMAN RESOURCE MANAGEMENT...... 19

9. PROGRAMME 2 - DESTINATION MARKETING & PROMOTION ...... 20

10. SUB PROGRAMME 2.1 - LEISURE MARKETING ...... 20

11. SUB PROGRAMME 2.2 – BUSINESS TOURISM...... 28

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TABLE OF CONTENTS

PART C GOVERNANCE

1. INTRODUCTION ...... 34

2. PORTFOLIO COMMITTEES ...... 34

3. EXECUTIVE AUTHORITY ...... 34

4. THE BOARD ...... 34

5. RISK MANAGEMENT AND INTERNAL CONTROL ...... 37

6. INTERNAL AUDIT AND AUDIT COMMITTEES ...... 38

7. COMPLIANCE WITH LAWS AND REGULATIONS ...... 38

8. FRAUD AND CORRUPTION ...... 38

9. MINIMISING CONFLICT OF INTEREST ...... 38

10. CODE OF CONDUCT ...... 38

11. HEALTH SAFETY AND ENVIRONMENTAL ISSUES ...... 38

PART D HUMAN RESOURCE MANAGEMENT

1. INTRODUCTION ...... 39

2. HUMAN RESOURCE OVERSIGHT STATISTICS ...... 39

PART E FINANCIAL INFORMATION

1. STATEMENT OF RESPONSIBILITY ...... 44

2. INTERNAL AUDIT AND AUDIT COMMITTEE GOVERNANCE ...... 45

3. REPORT OF THE AUDITOR-GENERAL TO THE PROVINCIAL LEGISLATURE ON THE ANNUAL FINANCIAL STATEMENTS OF NORTHERN CAPE TOURISM AUTHORITY...... 49

4. ANNUAL FINANCIAL STATEMENTS ...... 53

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Honourable MacCollen Jack

MEC FINANCE, ECONOMIC DEVELOPMENT AND TOURISM

Dear MEC

It gives me great pleasure to submit the Annual Report of the Northern Cape Tourism Authority for the financial year 1 April 2017 to 31 March 2018 for your information and scrutiny, as well as for presentation to the Northern Cape Provincial Legislature and other relevant institutions.

This report presents our activities and outcomes for the period under review, while at the same time highlighting those challenges faced. It also highlights our contribution towards the development goals of the Province and living the principles of Batho Pele in everything we do. Ensuring that the Northern Cape gets its equitable and increased share of the tourism market has always been and will continue to be a challenging task. I believe that this has been the year in which the Board and NCTA staff truly excelled by closing the gaps and reaching those goals, which were once beyond our wildest dreams. Through hard work and creative ‘out-of-the-box’ approaches, we have managed an unprecedented level of success and a distinctly heightened profile for the Province. It gives our Board great pride to present a notably comprehensive Annual Report, which outlines successes achieved in the finest detail as well as highlighting challenges experienced. We have put in place every possible measure to convey these successes and challenges in a language that is easily assimilated by those working closely with tourism stakeholders as much as those to whom tourism is a relatively new concept in their respective portfolio. I respectfully urge the Honourable MEC to specifically note some challenges with which the Board will continue to grapple and which require the urgent support from the Provincial Executive, to whom we remain grateful for sharing our vision in their continued commitment towards tourism development.

Yours sincerely

Colin Fortune Chairperson: Northern Cape Tourism Board

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Part A Part PART A

GENERAL INFORMATION

1. PUBLIC ENTITY’S GENERAL INFORMATION

REGISTERED NAME: Northern Cape Tourism Authority PHYSICAL ADDRESS: 15 Villiers Street Kimberley 8301 POSTAL ADDRESS: Private Bag X5017 Kimberley 8300 TELEPHONE NUMBER/S: (053) 833 1434 FAX NUMBER: (053) 831 2937 EMAIL ADDRESS: [email protected] WEBSITE ADDRESS: www.experiencenortherncape.com EXTERNAL AUDITORS: Office of the Auditor-General of South Africa BANKERS: First National Bank

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2. LIST OF ABBREVIATIONS/ACRONYMS

AGSA Auditor General of South Africa Part A MEC Member of Executive Council CEO Chief Executive Officer CFO Chief Financial Officer PFMA Public Finance Management Act TR Treasury Regulations SMME Small Medium and Micro Enterprises SCM Supply Chain Management NCTA Northern Cape Tourism Authority MICE Meetings, Incentives, Conferencing and Exhibitions NTSS National Tourism Sector Strategy SA South Africa NC Northern Cape JMA Joint Marketing Agreement SAT South African Tourism PR Public Relations MTB Mountain Biking UK United Kingdom WTM World Travel Market SSC Supersonic Car IBTM International Business Travel and Meetings HR Human Resources DEDaT Department of Economic Development and Tourism EXCO Executive Committee AFS Annual Financial Statements GRAP Generally Recognised Accounting Practise ITB Internationale Tourismus-Börse VS Versus MOU Memorandum of Understanding GDP Gross Domestic Product NCMA Northern Cape Motorsport Association IYM In Year Management Monitoring ODI One Day International

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Part A Part 3. STRATEGIC OVERVIEW

3.1 Vision

The Northern Cape to be one of the most preferred tourist destinations in the world.

3.2 Mission

To be catalysts for the economic empowerment of the people of the Northern Cape through tourism promotion programmes that will contribute to the GDP of the province.

3.3 Values

Our values are: • Respect and recognition for our people; • Acting with integrity; • Caring for our employees; • Responsibility and the acceptance of accountability for the outcomes of our actions; and • Pushing the boundaries of excellence in everything we do.

3.4 Overview

Given our limited resources most notable financial and human, the NCTA, as a destination marketing authority implements its activities in the most cost effective output driven manner. The NCTA promotes the Northern Cape generically in terms of its unique selling points as an all seasons, year round preferred adventure, cultural and nature destination, utilising marketing initiatives that are guided by five key performing areas. We work to engender a travel culture among the Northern Cape residents and to develop the Northern Cape potential as a business events destination.

Domestic tourism is high on our agenda. We address seasonality through all year round campaigns including the national domestic campaign. The NCTA`s international approach is focused, cost effective and customer driven. We persistently undertake to play smarter,’ in the increasingly competitive market by adopting South African Tourism`s market segmentation research into key spend and volume markets that highlights areas where the Northern Cape Tourisms marketing efforts will reap the greatest returns. The organisation has embarked upon an aggressive e-business strategy that includes digital, social media engagement and a website, www.experiencenortherncape.com. The NCTA participates in travel shows and exhibitions (strategically selected - based on Northern Cape product offerings). We host overseas and domestic media, tourism trade and government delegations. The organisation maintains and utilises a database of domestic and international travel trade and other related role players. This information is disseminated to stakeholders.

We coordinate advertising, public relations and direct mailing campaigns. We articulate opinions to the media with regard to strategic tourism matters by arranging media conferences and drafting media releases. We engage in Joint Marketing Agreements with international and domestic tourism partners, which allows us to leverage off our partners and create investment for the province. The NCTA is active in promoting the Northern Cape as a destination for business events. The NCTA demonstrates an unwavering commitment towards industry transformation. We partner with the relevant government departments (local, regional and provincial), product owners (routes), media (local and national) and e-marketing platforms to enhance SMME exposure. Networking platforms are created at our exhibitions, stakeholder meetings and trade meetings.

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The NCTA embraces good cooperative governance. Financial discipline underpin our operations at every level, especially in light of increasing inflationary costs. We have built greater accountability for quality into the performance for all managers such that the organization operates on outcome-driven principles. We will continue to exercise prudence, while we explore new opportunities for both leisure and business tourism Part A to enhance our tourism performance at domestic and international level. The NCTA has developed a staff component whereby every individual is responsible for managing a system as opposed to merely “having a job”. We value our staff, recognize their performance and appreciate them as people. This, in turn, feeds into our growth plan for the tourism industry. Training and Development forms an integral part of our organizational focus to equip staff on a continued basis to enhance service delivery. We are committed to promoting sustainable confidence in our conduct as an organization and as a corporate citizen.

4. LEGISLATIVE MANDATES

• Public Finance Management Act, Act 1 of 1999

• Treasury Regulations

• Northern Cape Tourism Entity Act,2008 (Act No.5 of 2008)

• Labour Relations Act 66 of 1995

• Basic Condition of Employment Act 75 of 1997

• Employment Equity Act

• Skills Development Act 97 of 1998

• Occupational Health and Safety Act

• Unemployment Insurance Fund Act

• National Tourism Sector Strategy (NTSS)

• White Paper on the Development and Promotion of Tourism in the Northern Cape Province

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Part A Part 5. ORGANISATIONAL STRUCTURE

Northern Cape Tourism Board

Northern Cape Tourism Authority 1 x Chief Executive Officer

Financial Management Marketing Business Tourism Administration Support Human Resources Services 1 x Chief Financial 1 x General Manager 1 x General Manager 1 x HR Manager Officer 1 x Marketing 1 x Events Coordinator 1 x Manager: Admin 1 x HR Clerk 1 x Financial Manager Communications 1 x MICE Assistant Support 1 x Financial Clerk Officer 1 x Events Support 1 x Receptionist 1 x Supply Chain 2 x Marketing Officers Clerk 1 x Cleaner Officer 1 x Marketing Assistant 1 x IT Officer 1 x Supply Chain Clerk 1 x Researcher 1 x Marketing Support Clerk

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FOREWORD BY THE CHAIRPERSON

The impact of tourism on the economy is inestimable. Tourism permeates all facets of the Part A economy. It is in the interest of all South Africans to invest in, grow, transform, and protect the sector. Tourism remains one of the key priority sectors for driving economic growth and job creation locally and provincially. Despite a depressed economy and a constrained spending climate we continued to attract visitors from our key source markets. We have raised the bar in the way we work to deliver on our brand promise to our visitors, as well as in supporting the emergence and growth of SMMEs. We are deliberate in how we sell the destination in a manner that will address geographical spread and seasonality

In measuring performance, the number of domestic trips doubled compared to last year. This represents the best results since 2010. Northern Cape Tourism exceeded their ten percent growth in international arrivals. The outcome of our performance resulted in a R1.4 billion contribution to the provincial economy, representing an increase of 26% growth compared to the previous year (Source: SAT research unit).

Domestic tourism remains high on our agenda to ensure its increased contribution to our tourism growth. We believe our cross-seasonal campaigns, together with a renewed focus on our developed routes, bigger emphasis on cultural, heritage and township tourism will enable us to grow our domestic market significantly.

Internationally tourism is one of the most resilient industries, growing steadily every year. In 2016, global tourism reached a 1 235 billion tourists, with South Africa receiving a record of 10 million of this market share; a 12.8% increase from 2015 (Source: South African Tourism). According to South African Tourism, travel to emerging economies such as South Africa is projected to grow at twice the global average. This is an opportunity that we must seize. It is therefore critical that we be adaptable to new trends; such as the rapid rise of the millennial traveller, the increased disposable income for international travel by the new middle class in nations such as China, the burgeoning role of technology in how people book travel and share their tourism experiences.

The Northern Cape Tourism Authority has made tremendous progress despite limited funds, stretching our Rand as far as possible through strategic partnerships. We dare not lose our market share and must continue to invest into this sector which has performed so diligently to reach its present status: respected at the highest level domestically, regionally and internationally. Sustaining positive growth in the number of tourist arrivals and the revenue generated in the current global and domestic environment is a constant challenge. Inspired by the reviewed National Tourism Sector Strategy we aim to further increase the direct contribution of tourism to the economy through partnerships research based collaborative planning and the implementation of agreed priority actions. Advancing transformation in the tourism sector is paramount. Representative ownership in the tourism sector is critical to bring about meaningful transformation in the sector. The Northern Cape Tourism Authority is committed to contribute to this important objective. At an organizational level, we have structured ourselves to be agile, innovative, and performance driven in order to deliver on the mandate.

Our adherence to a high standard of corporate governance has once again resulted in a clean audit report from the Auditor-General’s office for the period in review. This is a demonstration of the efficiency and effectiveness of the control environment and attitude towards good governance. The organization upholds the highest standards of performance whilst ensuring compliance with rules. We are results orientated in achieving our mandate. As the Board we are confident that Tourism will continue on a growth trajectory. We will continue to ensure that the organisation capitalises on all our tourism attributes to maximise sectors potential.

My sincere thanks and appreciation to the Honorable MEC Mr MacCollen Jack for his leadership. Our appreciation is also extended to the Acting Head of Department, Mr Sam Mabilo, together with his colleagues at the Provincial Department of Economic Development and Tourism for their unwavering support and commitment to our shared end goals. Sharron Lewis, NCTA Chief Executive Officer, has surrounded herself with a team that places great value on service excellence, timeous delivery, passion and a willingness to learn and grow from experiences.

Together, we encapsulate Batho Pele!

Colin Fortune Chairperson: Northern Cape Tourism Board

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Part A Part 7. CHIEF EXECUTIVE OFFICER’S OVERVIEW

INTRODUCTION

Northern Cape Tourism performance remains on a growth trajectory. We continue to achieve to an extraordinary level of tourism growth, despite the fact that we remain the Province with the least funding from National Government and that the funding we do receive, is eroded to some degree by inflationary considerations caused by an ongoing national economic recession. Despite these challenges the year in review produced sterling results. This is directly linked to consistent performance driven by a disciplined growth strategy and guided by a set of clear strategic priorities. It also reflects something more – a difference in how people across this organization think, act and work together. Corporate culture is difficult to capture in a checklist or a questionnaire, but it is a topic directly related to trust. It is revealed in the beliefs that an organization has committed to uphold and in the actions of the people who work there. It is mirrored in the aspiration to grow tourism in a manner that respects all stakeholders.

THE YEAR IN REVIEW

The accelerating pace of change is not news – it’s the everyday reality that frames how we conduct our business. We have built that fact into our planning. The forces we discussed a year ago continue to affect all of us. Changes in consumer behaviour – driven most notably by the confluence of mobile networks, rapid digitization, consumer analytics and cloud – are transforming the competitive landscape, and prompting reviews of long-held business models. Given this the NCTA realized that it cannot be business as usual. To deliver on our mandate our strategy is informed by research (competitor analysis and consumer insights – as well as future prospects at a global, national and domestic tourism level).

Monitoring Performance

Northern Cape Brand: Brand Northern Cape continues to be a formidable competitor in the global tourism space. We remain consistent in our messaging. We invest only in selected target markets for leisure and business tourism and we do not deviate from this firm end goal. Our organisation continues to collect prestigious accolades, the most recent: Gold Award (Best Destination) Indaba International Travel Trade Show 2018. The value is inherent in the fact that by promoting the unique Northern Cape Brand, its features and benefits as a tourist destination is really an investment in all aspects of the Provincial fiscal health. Brand Northern Cape grew by 3421% with a media value of 26 billion versus 7 billion of the previous year. The exceptional growth is attributed to the Bloodhound Debut (Source: Meltwater Online News Monitoring, Newsclip Media Monitoring Service and Bloodhound SSC).

Domestic Marketing remains high on our agenda: This has led us to intensify our efforts around domestic travel. We are deliberate in how we market and promote domestic tourism to address geographical spread, seasonality and length of stay. We have intensified our focus on the many rural, heritage and culture-based tourism “gems” that are fundamental to our brand pillar offerings. The investment made in our marketing campaigns, advertising, joint marketing agreements, media investment, and e-marketing platform has showed an impressive return on our investment. We exceeded our annual target of 2%. Domestic Trips grew with 90%, bed nights grew by 44% and spend increased with 10%. Length of stay increased to 7 days versus the 4 days of the previous year (Source: South African Tourism Research Unit).

International Marketing: Our focus on the international arena remains Strategic. We adopt a focused cost effective and customer driven approach to play smarter in the increasingly competitive global market. We work closely with South African Tourism to leverage off their extensive marketing intelligence network, campaigns and business tourism initiatives. We invest only in selected markets that guarantee increased visitor arrivals. For the period in review we have exceeded our annual growth target of 8%. International arrivals grew with 15%, bed nights grew by 73%. Spend increased with 38 % (Source: South African Tourism Research Unit).

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BUSINESS TOURISM (MEETINGS, INCENTIVES, CONFERENCE AND EVENTS): The hosting of conferences and events in no small measure allows the Northern Cape to strengthen its competitive position as a desirable and must do Southern African Tourism destination, broadening its markets, extended tourist stays, attract investment to the destination and growing the destination brand. The NCTA hosted 65 provincial events with a Part A total of 253 941 visitors representing a 23% increase over the previous period and contributing R194 million to the provincial economy (Source: Grant Thornton Calculation Methodology).

BEST CORPORATE GOVERNANCE RECORD: Good corporate governance practice is integral to optimal performance. The visionary leadership and the stability of the organization with a minimal staff turn-over enable the NCTA to achieve its goals more rapidly than many rival destinations. The NCTA has developed a staff component whereby every individual is responsible for managing a system as opposed to merely “having a job”. We value our staff, recognize their performance and appreciate them as people. This, in turn, feeds into our growth plan for the tourism industry. Training and Development forms an integral part of our organizational focus to equip staff on a continued basis to enhance service delivery within a challenging work environment. Continued emphasis has been placed on staff development to improve leadership and management through coaching and mentoring. We are committed to promoting sustainable confidence in our conduct as an organization and as a corporate citizen.

Financial Discipline: underpin our operations at every level, especially in light of the ever increasing inflationary costs. We have built greater accountability for quality into the requirements for all managers such that the organization operates on outcome-driven principles at all times. We will continue to exercise prudence, while we explore new opportunities for both leisure and business tourism to enhance our tourism performance.

Stakeholder Relations: Tourism growth also requires smart partnership and creative collaborations, bringing the travel trade on board to work towards a common goal, as well as government stakeholders. Connecting with all layers of the tourism industry is critical for building beneficial cooperative relationships. The NCTA plays a leading role in marketing the province and in driving consumer demand. However, the delivery of the promise lies with the tourism industry at large. Stakeholder reaction is critical for building a stable progressive tourism industry. This is the reason why we work tirelessly with our stakeholders to raise the awareness, education and add to growing domestic tourism, which is fundamental for any thriving tourism economy.

THE NCTA IS COMMITTED TO THE TRANSFORMATION OF THE TOURISM INDUSTRY. The NCTA continues to support and assist in the development of community and SMME projects. As a rule of thumb and especially during event partnerships, the NCTA endeavours to ensure local SMME beneficiation. Community-driven events represent a core aspect of our uniquely Northern Cape Tourism offering. We partner with the relevant government departments (local and regional), product owners (routes), media (local and national) and e-marketing platforms to enhance SMME exposure. Networking platforms are created at our exhibitions, and stakeholder meetings. Another project of which we are extremely proud is the NDT’s SMME Markets Access Programme, informally known as “Hidden Gems.” In collaboration with South African Tourism, this pioneering projects sees small businesses in each of the nine provinces receiving training and mentorship by industry professionals, and being given access to travel buyers and other key industry stakeholders. The Northern Cape has 30 entrants. For the year in review 348 SMME’s were featured in various media and resulting in 111 articles, reaching a potential audience of 16 million with a media value of R40 million (Source: Newsclip Media Monitoring, Green Kalahari Booklet, NC Travel Guide, NC Summer Booklet and Magazine Adverts). Provincial events created a total of 2 779 temporary employment opportunities and generated income of approximately R2 million (Source: Organizers Reports).

While the global tourism outlook looks good we have to manage and address our challenges to stay competitive within an increasingly dynamic tourism industry. We are marketing in an enormously competitive global environment, however our efforts to improve our destination and visitor experience will not translate into increased tourist numbers unless we market well and continue to up our game, interalia: developing niche markets, keeping track of global trends, consistent adherence to service excellence standards and lastly but not least the support and service delivery at local government level is critical for tourism growth.

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Part A Part Tourism success is based on collaboration. Whilst our job is to create the demand appetite and desire to travel we are dependent on the Northern Cape`s Tourism industry to ensure that we deliver exceptional services and a to enhance the quality of our tourism experience. Adequate tourism resource commitment at Regional and local government is critical to strengthen the marketing arm of the province. We are resilient in the face of any who doubt that we cannot sustain the momentum. We are confident that the implementation of the five work streams of the NTSS at provincial level will bring major changes to the Northern Cape Tourism Landscape. Our 5-in-5(5 million tourist in five years) collaboration with South African Tourism will further enhance our actions/ activities to the effect. We are committed to ensuring that the ideals of 5-in-5 strategy is espoused to ensure that tourism serves as the catalyst for inclusive economic growth and enhanced social cohesion, as mapped out in the National Development Plan.

Team Northern Cape survives as a function of our passion for the tourism product and the people of the Northern Cape. I would like to commend each of my staff members, who deliver their very best at all times. A special word of thanks goes to our Board of Directors, especially the Executive Committee, for their unwavering support, commitment to professionalism and good management on which we pride ourselves continuously.

Sharron Lewis Chief Executive Officer: Northern Cape Tourism Authority

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PART B

PERFORMANCE INFORMATION

1. STATEMENT OF RESPONSIBILITY FOR PERFORMANCE INFORMATION Part B

Statement of Responsibility for Performance Information for the year ended 31 March 2018

The Chief Executive Officer is responsible for the preparation of the Public Entity’s performance information and for the judgements made in this information.

The Chief Executive Officer is responsible for establishing, and implementing a system of internal control designed to provide reasonable assurance as to the integrity and reliability of performance information.

In my opinion, the performance information fairly reflects the actual achievements against planned objectives, indicators and targets as per the annual performance plan of the Public Entity for the financial year ended 31 March 2018. The performance information of the entity is set out on pages 16 – 43.

Sharron Lewis Chief Executive Officer: Northern Cape Tourism Authority

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2. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES

The Auditor General has conducted some audit procedures on the performance information for usefulness and reliability, compliance with laws and regulations and internal control, but an opinion is not expressed on the Part B Part performance information.

Refer to page 49 of the Report of the Auditor General’s Report, included in Part E: Financial Information.

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3. PERFORMANCE INDICATION BY PROGRAMME

3.1 PROGRAMME 1 – ADMINISTRATION

Purpose: To provide overall strategic management and leadership to the Entity through the provision of support services such as Board support, Financial Management, Human Resource Management and Compliance monitoring. Programme 1 oversees Strategic Planning, Performance monitoring and reporting in teams of PFMA. Part B Sub Programme 1.1 - Office of the CEO Strategic Objective 1.1.1 - The provision of Strategic Management to the Entity

Government Outcome: Decent Employment through inclusive economic growth

Government Sub-Outcome (9) Implement National Tourism Sector Strategy and review regularly in terms of:

• impact on growth • impact on employment • impact on investment • impact on output • impact on exports • African regional growth

Strategic objective The provision of Strategic Management to the Entity

Unprejudiced Statement To provide strategic leadership that would lead to an unqualified audit opinion for the strategic planning period and beyond 100 %of performance targets met for the strategic planning period. Indicator Percentage of annual performance targets met by 2020

Target 100%

Strategic Objective 1.1.1: The provision of Strategic Management to the Entity

Strategic Objective Statement/ Actual Achievement Planned Target Actual Achievement Deviation Indicator 2016/2017 2017/18 2017/18

Percentage of annual 93% 100% 94.64% Refer to sub performance targets met by programmes 2020

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In order to achieve the above indicator, all the performance targets stated below need to be achieved.

Part B Part Performance Indicators and annual targets

Strategic Objective 1.1.1 Performance Indicator Actual Achievement Planned Target Actual Achievement Deviation 2016/2017 2017/18 2017/18 Number of Board Meetings per 4 4 4 None annum to be held in accordance with the Northern Cape Tourism Act Executive Committee meetings 11 11 11 None to be held in accordance with the Northern Cape Tourism Act Audit Committee meetings to 4 4 5 Exceeded – one be held in accordance with the additional Audit Northern Cape Tourism Act Committee meeting was attended

Attendance of national 12 8 12 Exceeded – stakeholder meetings four additional meetings were attended

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Sub Programme 1.2 - Financial Management

Strategic Objective 1.2.1 - The provision of Financial Management to the Entity

Strategic Objective 1.2.1: The provision of Financial Management to the Entity

Performance Indicator Actual Achievement Planned Target Actual Achievement Deviation 2016/2017 2017/18 2017/18 Part B Number of unqualified audit 1 1 1 None opinions with no matters of emphasis for the strategic planning period

In order to achieve the above indicator, all the performance targets stated below need to be achieved.

Performance Indicators and annual targets

Strategic Objective 1.2.1

Performance Indicator Actual Achievement Planned Target Actual Achievement Deviation 2016/2017 2017/18 2017/18 Entity plans submitted to DEDaT as 1 1 1 None per legislative requirements

Adjustment estimate submitted to 1 1 1 None Provincial Treasury within specified timeframes Number of quarterly performance 4 4 4 None reports submitted to DEDAT

Number of IYM reports submitted 4 4 4 None

Annual Financial Statement 1 1 1 None submitted to Provincial Treasury and Auditor General by 31 May annually Entity’s performance reports 1 1 1 None submitted for external audit within specified timeframes Annual report submitted to the 1 1 1 None legislature before 30 September annually Supply chain management policy 1 1 1 None updated by March annually

Procurement Plan submitted on 30 1 1 1 None April annually Internal Audit plan completed by 1 1 1 None March annually Risk register completed by March 1 1 1 None annually

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Sub Programme 1.3 - Human Resource Management

Strategic Objective 1.3.1 - The provision of Human Resource Management to the Entity Part B Part Strategic Objective 1.3.1: The provision of Human Resource Management to the Entity

Performance Indicator Actual Achievement Planned Target Actual Achievement Deviation 2016/2017 2017/18 2017/18 No HR findings related to the 1 1 1 None audit outcomes of the entity

In order to achieve the above indicator, all the performance targets stated below need to be achieved.

Performance Indicators and annual targets

Strategic Objective 1.3.1

Performance Indicator Actual Achievement Planned Target Actual Achievement Deviation 2016/2017 2017/18 2017/18

Number of Financial disclosure 7 7 7 None forms submitted Number of Performance 16 17 15 Not achieved - Two Agreements Signed (2) vacancies not filled due to cost containment Number of HR Plans submitted 3 2 2 None

Number of funded vacant posts 2 2 0 Not achieved - Two filled (2) vacancies not filled due to cost containment Number of HR sessions held 3 3 3 None

Number of Labour Relations 1 1 1 None sessions held Number of Employee Wellness 2 2 2 None sessions held

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3.2 PROGRAMME 2 - DESTINATION MARKETING & PROMOTION

Sub Programme 2.1 – Leisure Marketing

Strategic Objective 2.1.1 - Contribute to grow the Domestic tourism in the Northern Cape by 2.8% annually

Government Outcome: Decent Employment through inclusive economic growth

Government Sub-Outcome (9) Implement National Tourism Sector Strategy and review Part B regularly in terms of:

• impact on growth • impact on employment • impact on investment • impact on output • impact on exports • African regional growth Strategic objective Contribute to the growth of Domestic tourist arrivals to the Northern Cape Objective Statement To implement a domestic marketing strategy that will position the Northern Cape as a desirable holiday destination and increase tourist arrivals by 2.8%. Indicator 2.8% growth in Domestic arrivals Target 2.8% growth in Domestic arrivals by 2021

Strategic Objective 2.1.1: Contribute to grow the Domestic tourism in the Northern Cape by 2.8% annually

Strategic Objective Statement/ Actual Achievement Planned Target Actual Achievement Deviation Indicator 2016/2017 2017/18 2017/18 % growth in domestic arrivals annually 89.45% (521 000) 2.8% (535 588) 90.4% (992 000) Exceeded

In order to achieve the above indicator, all the performance targets stated below need to be achieved.

Performance Indicators and annual targets

Strategic Objective 2.1.1 Performance Indicator Actual Achievement Planned Target Actual Achievement Deviation 2016/2017 2017/18 2017/18 Reviewed and approved 1 1 2 Exceeded – marketing strategy 2018/19 strategy approved before commencement of financial year. Implement domestic seasonal 4 4 4 None marketing campaigns Number of leisure exhibitions 3 4 4 None attended Number of trade channel 4 4 4 None marketing campaigns implemented Tourism month campaign 1 1 1 None implemented Number of media reports 4 4 4 None produced

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ACHIEVEMENTS

Domestic Marketing and promotion remains high on our agenda: We focus on geographical spread, seasonality, destination promotion and sustainable SMME development. Part B Part

Our domestic number of trips grew with 90.4%, 992 000 vs the 521 000 of 2016, bed nights grew with 44.4%, 2 767 000 vs 1 916 000 of 2016, spent increased with 10.6%, R 515 067 000 vs 465 491 000 of 2016. Length of stay increased with 89%, a total of 7 days vs 3.7 day (South African Tourism Research Unit).

Seasonal Campaigns: We implemented four seasonal campaigns. These are 360degree marketing campaigns executed across multi-media platforms (print, digital, advertising, printed collateral and promoted specific seasonal route experiences, iconic attractions and events. This outcome resulted in 205 articles, reaching a potential audience of 47 million with a media value of R56 million (Source: Newsclip and Meltwater Media Monitoring Services, newspaper & magazine articles, and SMMEs media values).

Tourism Month Campaign: The campaign resulted in 12 featured articles, with an audience reach of 1.5 million and a media value of R379 000.

Marketing Agreements concluded:

• Frances Baard District Municipality

• Namakwa District Municipality

• Pixley Ka Seme District Municipality

• John Taolo Gaetsewe District Municipality

• ZF Mgcawu District Municipality

Online Booking Platforms: Conversion and online book ability has increasingly become important when selling the Northern Cape to our domestic audiences. We have grown our partnership with domestic online booking platforms and these include www.lekkeslaap.co.za, www.sa-venues.co.za, www.safarinow.com, www.let’sgo. co.za, www.roomsforafrica.com and www.travelground.com. The online booking platforms are increasingly offering Northern Cape experiences, restaurants, special features/blogs and online bookable accommodation. The platforms featured 2 953 accommodation products, 83 attractions, 32 eating out places and 214 things to do in the Northern Cape.

Media Coverage: Through the positive relationships with mainstream and freelance media we have maximized national and provincial media coverage opportunities and continued to position the Northern Cape as a desirable domestic holiday destination. 15 123 mentions / stories were published, broadcasted in national media, on radio, television and in print with a reach of nine billion and media value of R837 million (Source: Meltwater Online News Monitoring, Newsclip Media Monitoring Service, Newspaper Article, Jacques Marais Articles, Magazine adverts, Seasonal campaigns, Tourism Month, Bloodhound SSC and SMME media value).

Sustained SMME Development: In partnership with National Department of Tourism, the provincial Department of Tourism and industry partners, the NCTA is implementing a three year support program for the 15 identified SMME’s in the Hidden Gem development program. The program included product training, product refinement for target markets and segments, market access training, trade and media awareness and industry alignment.

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SMME Marketing and Promotional Support: We featured 147 SMME products, creative arts, accommodation and experiences on the various marketing platforms of the NCTA aimed at domestic and international wholesalers, tour operators, travel agencies, event companies and media. 348 SMME’s were featured in various media and resulting in 111 articles, reaching a potential audience of 16 million with a media value of R40 million. Note this is included in total domestic media value (Source: Newsclip Media Monitoring, Green Kalahari Booklet, NC Travel Guide, NC Summer Booklet and Magazine Adverts).

Trade Partners are increasingly using our SMME products. Thompsons Tours, one of the largest tour operators Part B within South Africa, has contracted Undulata Guest House in Springbok for the Japanese Flower series in 2015 - 17. In 2015 (15 nights booked), 2016 (75 room nights booked) in 2017 (792 room nights booked generating an income of R900 000).

Social Tourism: NCTA in partnership with the National Department of Tourism supported 135 leaners to attend learning programs and seminars to enhance their skills. We further reached out to 6 167 children and elderly within our communities during our outreach activities which included hosted trips to events and tourism attractions within the province.

CHALLENGES

• Economic Constraints

• Climate change: Cancellation of Booking

• Budget Constraints

• Limited contracted products and properties by tour operators selling the Northern Cape.

• Limited tourism packages and product diversity available within the market for family travel.

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Strategic Objective 2.1.2 - Contribute to the growth of International tourist arrivals to the Northern Cape

Government Outcome: Decent Employment through inclusive economic growth Government Sub-Outcome (9) Implement National Tourism Sector Strategy and review

Part B Part regularly in terms of:

• impact on growth • impact on employment • impact on investment • impact on output • impact on exports • African regional growth Strategic objective Contribute to the growth of international tourist arrivals to the Northern Cape Objective Statement To implement an international marketing strategy that will position the Northern Cape as a desirable holiday destination and increase tourist arrivals by 8% Indicator 8 % growth in International arrivals Target 8 % growth in international arrivals annually

Strategic Objective 2.1.2: Contribute to the growth of International tourist arrivals to the Northern Cape Strategic Objective Statement/ Actual Achievement Planned Target Actual Achievement Deviation Indicator 2016/2017 2017/18 2017/18 % growth in international arrivals -9.4% (98 214) 8% (106 071) 15.2% (113 137) Exceeded annually

In order to achieve the above indicator, all the performance targets stated below need to be achieved.

Performance Indicators and annual targets

Performance Indicator Actual Achievement Planned Target Actual Deviation 2016/2017 2017/18 Achievement 2017/18 Reviewed and approved 1 1 2 Exceeded – 2018/19 international marketing strategy strategy approved before commencement of financial year. Number of international tactical 2 2 3 Exceeded – advert placed campaigns implemented in Travel Africa Number of leisure and trade 4 4 6 Exceeded – attended exhibitions attended Matka Nordic Travel Fair & WTM London Number of trade channel 5 5 5 None marketing campaigns implemented Number of media reports 4 4 4 None produced

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ACHIEVEMENTS

Our focus on the international arena remains very strategic. We adopted a cost effective and customer driven approach which allowed us to play smarter in the increasingly competitive global market. We work very closely with South African Tourism to leverage off their extensive marketing intelligence, networks, campaigns and leisure tourism initiatives.

Our international arrivals grew with 15.2% , 113 137 vs 98 214 of 2016, bed nights grew with 72.5%, 1 325 Part B 370 vs 768 148 of 2016, spent increased with 37.7%, R 873 946 450 vs R 643 691 095 of 2016. Length of stay increased with 51.8%, a total of 12.6 days vs 8.3 days in 2016 (South African Tourism Research Unit).

Most of the international arrivals were holiday makers, most holiday makers were in the age group 55 – 64 and visited the country. Visitors visiting 10 times or more will mostly include the Northern Cape in their itinerary. We have seen a growth of first time visitors to South Africa including the Northern Cape in their itinerary.

Tactical Campaigns: We exceeded our target. We reached a potential audience of 1.6 million with a media value of R567 million.

Trade Channel Marketing Campaigns: Our engagement with our trade partners resulted in a total of 7 353 room nights sold with an estimated rand value of R15. 3 million. The NCTA’s investment was R150 000.

Marketing Agreements in place:

• Signed Agreement with Eastern Cape Tourism and Parks Board

• Draft Agreement with Namibian Tourism

• Draft Agreement with South African Tourism (5 in 5 Radical Transformation Strategy)

• Draft Agreement with Free State Tourism, Gambling, Liquor and Tourism Authority

• Draft Agreement with North West Tourism and Parks Board

• Draft Agreement with West Coast District Municipality

Media Fam Trips: Our hosted familiarization trips produced a good return on our investment and have expanded the positioning of the Northern Cape as the premier destination for extreme culture, nature and adventure experiences, exploration and discovery. In partnership with SAT we have hosted 13 journalists including TV crews from our core markets resulting 76 printed and online articles, with a potential audience reach of 2 million and a media value of R32 million.

Media Coverage: The destination featured extensively in international media, a total of 104 692 articles featured online, on radio, television and in print, (an increase of 435% vs 19 563 of 2016)) reaching a potential global audience of 3.5 trillion (an increase of 5 299% vs 65 billion in 2016) generating a media value of R26 billion, (an increase of 620 685% vs 4.2 Billion of 2016) (Source: Meltwater Media Monitoring Service, Magazine adverts, Bloodhound SSC and Hosted Media).

The Bloodhound SCC’s media coverage including the debut in New Quay, Cornwall United Kingdom generated an impressive global awareness for the Northern Cape provincial government, the destination, Hakskeenpan and the communities of Mier. More than 200 global media attended the debut performance of the Bloodhound SCC and resulted in 2 459 editorials published online, in print and television with a potential audience reach of 4 billion and a media value R26 trillion. Note: This was a once off event that impacted extensively on our international media reach (Source: Bloodhound and Mettle PR).

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CHALLENGES

• Limited number of accommodation products currently available on international online booking platform.

• Limited contracted products and properties by the international operators selling the Northern Cape. Part B Part

• Budgetary constraints limits investment in JMA partnerships

• Global economy

• Cancellation of signature events

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Strategic Objective 2.1.3 - Contribute to the growth of brand Northern Cape

Government Outcome: Decent Employment through inclusive economic growth Government Sub-Outcome (9) Implement National Tourism Sector Strategy and review regularly in terms of:

• impact on growth

• impact on employment Part B • impact on investment • impact on output • impact on exports • African regional growth Strategic objective Improve brand awareness of Northern Cape as a desirable destination Objective Statement To implement a brand strategy that will improve the awareness of the Northern Cape as a desirable holiday destination

Indicator 10% Growth in awareness of destination Northern Cape Target 10% Growth in awareness of destination Northern Cape

Strategic Objective 2.1.3: Contribute to the growth of brand Northern Cape Performance Indicator Actual Achievement Planned Target Actual Achievement Deviation 2016/2017 2017/18 2017/18 % growth of Brand Northern 56% 10% 3421% Exceeded due to the Cape (301 311 887 810) (331 443 076 591) (3 554 843 058 522) Bloodhound Newquay Event in the UK

In order to achieve the above indicator, all the performance targets stated below need to be achieved.

Performance Indicators and annual targets

Performance Indicator Actual Achievement Planned Target Actual Deviation 2016/2017 2017/18 Achievement 2017/18 Reviewed brand and 1 1 2 Exceeded – 2018/19 destination reputation strategy approved before management strategy commencement of financial approved year. Number of brand and 5 5 5 None destination tracking tools implemented Number of digital campaigns 4 4 4 None implemented Number of brand touch 5 5 8 Exceeded – Vioolsdrif points created & Nakop Border Posts, Kmbly Airport & Brochure Management distribution Number of partner brand 20 20 23 Exceeded – 3 additional endorsements endorsements concluded Number of brand and 5 5 5 None destination performance reports produced

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ACHIEVEMENTS

Brand Northern Cape continued its upward growth with a 3 421% increase in potential audience reach, 3.5 trillion readers/viewers vs 100 billion in 2016 with an increase of 397 233% in media and value R26.2 billion

Part B Part vs R7 billion in 2016. Note: The Bloodhound Debut was a once off event that impacted extensively on our total brand reach. (Source: Meltwater Online News Monitoring, Newsclip Media Monitoring Service, Newspaper Article, Jacques Marais Articles, Magazine adverts, Seasonal campaigns, Tourism Month, Bloodhound SSC, SMME media value, and Hosted Media).

Trade Channel Marketing Campaigns: Our engagement with our trade partners resulted in a total of 7 353 room nights sold with an estimated rand value of R15.3 million. The NCTAs investment was R150 000.

Digital marketing remains attractive however it is becoming increasingly expensive as a result of new regulations impacting on future affordability. Northern Cape platforms performing well: Twitter, YouTube and Wayne.com. (Source: Social media insights, Wayn.com/ Lastminute.com and Agora pulse analytics).

CHALLENGES

• Limited research capability and functionality within the province.

• Alignment between provincial and national regarding domestic and international arrivals targets.

• Global recession and competition.

• Lack of alignment at local government.

• Limited public and private co-operation and interaction.

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Sub Programme 2.2: Business Tourism

Strategic Objective 2.2.1 - Increase Northern Cape’s Business Events Market Share to 4% by 2021

Government Outcome: Decent Employment through inclusive economic growth Government Sub-Outcome (9) Implement National Tourism Sector Strategy and review regularly in terms of: • impact on growth Part B • impact on employment • impact on investment • impact on output • impact on exports • African regional growth

Strategic objective Increase Northern Cape’s Business Events Market Share to 4% by 2021 Objective Statement To ensure destination competitiveness through the implementation of a Business Events Strategy that will increase Northern Cape’s Business Events Market Share to 4% by 2021 Indicator Increase in number of business events hosted in the Province Target 4% market share of South African Business Events industry by 2021

Strategic Objective 2.1.1: Contribute to grow the Domestic tourism in the Northern Cape by 2.8% annually Strategic Objective Actual Achievement Planned Target Actual Achievement Deviation Statement/Indicator 2016/2017 2017/18 2017/18 % Growth in no of association related Business Events 2 1 1 None hosted in the province In order to achieve the above indicator, all the performance targets stated below need to be achieved.

Performance Indicators and annual targets

Strategic Objective 2.1.1 Performance Indicator Actual Achievement Planned Target Actual Achievement 2016/2017 2017/18 2017/18 Deviation Reviewed and approved Exceeded – Business Events strategy 2018/19 strategy 1 1 2 approved before commencement of financial year Number of new stakeholder agreements entered into with industry/association members 3 5 5 None to bid for future events No of bids identified and supported 5 4 4 None

No of MICE Exhibitions Exceeded – Attended attended 4 2 3 IBTM, China

No of Business Events supported 2 2 2 None No of Joint Marketing agreements (JMA’s) concluded 4 2 2 None

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ACHIEVEMENTS

All targets achieved for the period under review.

Part B Part Business Events Supported

• Mining Indaba • Marine and Coastal Educators Network

Joint Marketing Agreements signed

• Kruger and Associates for the development of a National Business Events database • SW Africa Destination Management Company for promotion and activation of Incentive Groups to the Northern Cape – resulting in an Emirates group from the Czech Republic to the Northern Cape in June 2018.

Stakeholder Agreements signed

• Northern Cape Chamber of Commerce to secure Business Events • Northern Cape Cricket to secure and promote National and International Cricket games for the province • Tafel Lager Griquas Rugby Union for National and International games • Department of Social Development • South African Tourism UK for Bloodhound Promotion and Activations.

Northern Cape successfully hosted the Armed Forces Day in Kimberley, rated as one of the best ever.

CHALLENGES

The establishment of a Provincial Convention Bureau to coordinate efforts to bid and secure more Business Events recognised by international bodies such as the International Congress and Convention Association

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Strategic Objective 2.2.2 - Support the expansion of annual events to grow visitor attendance by 10% per annum

Government Outcome: Decent Employment through inclusive economic growth Government Sub-Outcome (9) Implement National Tourism Sector Strategy and review regularly in terms of:

• impact on growth • impact on employment Part B • impact on investment • impact on output • impact on exports • African regional growth Strategic objective Support the expansion of annual events to grow visitor attendance Objective Statement To ensure destination competitiveness through the implementation of the Provincial Events Strategy to stimulate growth in visitor numbers by 10% per annum Indicator % increase of visitors Target 10% growth in visitor attendance

Strategic Objective 2.2.2: Support the expansion of annual events to grow visitor attendance by 10% per annum Strategic Objective Statement/ Actual Achievement Planned Target Actual Achievement Deviation Indicator 2016/2017 2017/18 2017/18 % Growth in number of visitor 9.48% 10% 23% Exceeded by 13% attendance at provincial events

In order to achieve the above indicator, all the performance targets stated below need to be achieved.

Performance Indicators and annual targets

Performance Indicator Actual Achievement Planned Target Actual Deviation 2016/2017 2017/18 Achievement 2017/18 Reviewed Provincial events 1 1 2 Exceeded – 2018/19 strategy approved strategy approved before commencement of financial year Support Flagship events 4 5 5 None Identify and Support Local 61 60 60 None Events

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Events Comparison: 2015/16 vs 2016/17 vs 2016/17

The annual comparison of the various events supported through extensive marketing and promotional activations are as follows: Part B Part

Flagship events

Event Name Comments 2017/18 2016/17 2015/16

Gariep Arts Festival Reduction in no of visitors 45 000 49 000 56 941

Diamond and Dorings No figures for previous period 11 431 0 10 503

AfrikaBurn Event added as Flagship event 13 000 9 380 9 264

Kimberley Diamond Cup Event cancelled, no activations 0 8 668 9 043

Bloodhound Landspeed Record Event postponed, No activations 0 1 245 3 870

Kalahari Desert Festival Event added as Flagship event 9 000 2 000 0

Totals 78 431 70 293 89 621

Visitors to Flagship events shows an increase of approximately 12%. This increase is as a result of the addition of two events previously reported under provincial events due to the cancellation of Green Kalahari Canoe Marathon and postponement of the Kimberley Diamond Cup. The two new Flagship events namely AfrikaBurn and the Kalahari Desert Festival are now recognised as Flagship events due to the unique nature of these events and its appeal to international and domestic visitors.

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Provincial Events

2017/18 2016/17 2015/16 Number of Total Event Number of Total Event Number of Total Event Events Attendance Events Attendance events Attendance Quarter 1 11 41 979 9 9 339 16 22 831 Quarter 2 6 16 703 13 31 499 13 23 231 Part B Quarter 3 18 25 893 26 78 482 11 32 320 Quarter 4 25 90 935 11 16 873 10 29 800 Totals 60 175 510 59 136 193 50 108 182

Employment The following employment figures were recorded for some of the events supported by the NCTA:

People Project No of Days Average Fee Total Spend Employed Quarter:1 NCMA: Battle of the Provinces 15 1 day R200.00 R3000.00 NCMA: Easter Motorsports 31 1 day R200.00 R6 200.00 Orange River Descent 25 3 days R150.00 R11 250.00 Kimberley Classic & Darts 40 3 days R150.00 R18 000.00 Supadrift Series 28 3 days R150.00 R12 600.00 Quarter: 2 Williston Winter Festival 30 4.7 days R250.00 R35 250.00 Trans Augrabies MTB 190 1 day R155.00 R29 450.00 Spring Fest Motorshow 14 1 day R150.00 R2 100.00 Pella Khaima Festival 28 4 days R150.00 R16 800.00 Nababeep Copper Festival 50 4 days R229.00 R45 800.00 Naba Food and Wine Festival 67 2 day R150.00 R20 100.00

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Market @ Flamingo Casino 74 1 day R250.00 R18 500.00 Lebo Sekgobela Night of Worship 98 1 day R250.00 R24 500.00 Flamingo Park Race 156 1 day R250.00 R39 000.00

Part B Part Quarter: 3

Barney Barnato Golf Amateur Tournament 69 4 days R175.00 R48 300.00 SA vs Bangladesh ODI Series 10 1 day R250.00 R2 500.00 CC Riders Rallye 25 4 days R21 850.00 Jackson Cassidy Live Show 10 2 days R250.00 R5 000.00 Africa T20 Cup 6 2 day R150.00 R1 800.00 VKB Knights Vs Lions 10 1 day R250.00 R2 500.00 053 Concert 16 3 days R250.00 R2 250.00 Gariep Arts Festival 406 4 days R250.00 R406 000.00 Quarter: 4

Desperado Kuruman rally 600 2 days R 150.00 R 180 000.00 NCMA Easter Motorsport Events 34 3 days R 150.00 R 15 300.00

Kalahari Desert Festival 126 3 days R 150.00 R 56 700.00 Beach Festival 125 15 days R 150.00 R 281 250.00 Richtersveld Liggiesfees 71 2 days R 150.00 R 21 300.00 Metro FM Heatwave 410 2 days R 150.00 R 123 000.00 Okiepfees 15 1 day R 150.00 R 2 250.00 Totals 2 779 R1 452 550

ACHIEVEMENTS

All targets achieved for the period in review.

The NCTA supported 65 provincial events vs the 64 supported for the previous accounting period. Total attendance figures recorded for Flagship and Provincial events were 253 941 compared to 206 486inthe previous accounting period, which constitute an increase of 23%.

Approximately 2 779 temporary employment opportunites were created through these provincial events vs 2088 during the previous accounting period, generating income of R1,5 million vs R1.1 million to previously disadvantaged and unemployed youth.

Flagship and provincial events contributed approximately R194 million vs R118 million during the previous period to the provincial economy. (Source: Grant Thornton calculation methodology)

CHALLENGES

The establishment of a Provincial Convention Bureau to coordinate efforts to bid and secure more Business Events recognised by international bodies such as the International Congress and Convention Association (ICCA).

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PART C GOVERNANCE 1. INTRODUCTION The Northern Cape Tourism Authority is a Schedule 3C Public Entity. The NCTA subscribes to and is committed to complying with the principles and standards of integrity and accountability expressed in the Public Finance Management Act of 1999 (PFMA), relevant Treasury Regulations and, where applicable and practical, the King IV Report on Corporate Governance.

While it is the responsibility of the Board to oversee the overall process and structure of corporate governance,

each business unit and every Northern Cape Tourism Authority employee is responsible for promoting good Part C corporate governance practices. The entity’s values and philosophies are the framework against which behaviour, practices and activities are measured to assess that one is keeping up to the characteristics of good governance.

Our corporate values require Managers and employees to behave with integrity, and to consistently and uncompromisingly display moral strength and conduct which promote trust.

2. PORTFOLIO COMMITTEES The NCTA presented its Annual Performance Plan for 2017/18 to the Portfolio Committee on Finance, Economic Development and Tourism and the Standing Committee on Public Accounts.

3. EXECUTIVE AUTHORITY The NCTA submitted quarterly performance reports to the Office of the MEC: Finance, Economic Development and Tourism on the following dates: Q1 - 5 July 2017 Q2 - 6 October 2017 Q3 - 13 December 2017 Q4 - 10 April 2018 The Northern Cape Tourism Board endorses the Performance Reports quarterly.

4. THE BOARD Powers and functions of the Board In order to achieve the objectives of the Entity, the Board may –

(a) in consultation with the responsible Member and the Member of the Executive Council responsible for Finance, lease, purchase or otherwise acquire, let, sell exchange or alienate, mortgage, burden with a servitude of confer any real right in immovable property; (b) rent, purchase or acquire, rent out, sell, exchange or alienate, pledge or confer any other real right in movable property; (c) negotiate or, in consultation with the responsible Member, cooperate with any government, provincial administration or local government, or any other board or person, in the Republic or elsewhere, with regards to any matter which is directly or indirectly aimed at the achievement of the objectives of the Board; (d) in consultation with the responsible Member, enter into agreements with a similar body, within the Republic or elsewhere, for the promotion of tourism in the respective areas for which the Entity and that body have been established, and for what purpose the Board, or a member or members of the Board, may undertake journeys inside and outside the Republic; (e) in consultation with the responsible Member, open and administer offices which may be necessary or advisable for the effective and proper exercise of its powers, the performance of its functions and the carrying out of its duties;

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(f) acquire insurance cover – (i) against any loss, damage, risk or liability which it may suffer or incur; and (ii) for the members of the Board and committees and employees in respect of bodily injury, disablement or death resulting solely and directly from an accident occurring when performing their duties as such members or employees (g) open and maintain an account in the name of the Entity with a registered Bank in the republic; (h) draw up, make, publish and sell or make available free of charge, books, guides, maps, publications, photographs, films, videos and similar matter intended to inform persons in the Republic or elsewhere, of

Part C Part tourism attractions and services in the Province; (i) gather, evaluate and process information relating to tourism in the Province and make such information available to persons who are engaged in the tourism industry; (j) give marketing advice and guidance to persons who are engaged in the tourism industry in the Province; (k) with a view to the effective marketing of, and the provision of information relating to any service, facility or product offered in connection with tourism, determine, publish and regulate the use of such distinguishing signs and wording as the Board may deem fit; (l) in consultation with the responsible Member and the Member of the Executive Council responsible for Finance, establish, manage and administer any pension or provident fund or medical aid scheme for the benefit of the Entity’s employees, or have such fund or scheme administered by another person or body; (m) negotiate and co-operate with any educational institution regarding the institution, continuation or expansion of courses for the training of persons for careers in the tourism industry; (n) approve the use of trading names by the Entity for specific tourism marketing projects; and (o) perform any other activities which may contribute towards the achievement of the objectives of the Entity.

In order to achieve the objectives of the Entity, the Board must – (a) work with the Department and municipalities to implement the tourism development and marketing strategies of the Province and municipalities; (b) integrate transformation objectives into the operational activities of the Entity; (c) work with other national and provincial public entities, particularly those tasked with tourism, trade and investment promotion; and

(d) work with sector-specific bodies which contribute to the growth of the tourism industry in the Province

The Board must exercise and perform its powers and functions with due regard to section 104, read with section 125 of the Constitution, section 230 of the Constitution, the Borrowing Powers of Provincial Governments Act, 1996 (Act No. 48 of 1996), the Public Finance Management Act, 1999 (Act No. 1 1999) and the provisions of all national legislation and all national policies, guidelines and directives pertaining to tourism, trade, industry, sector development and investment, with specific reference to policies, guidelines and directives pertaining to the transformation of the tourism and business sectors.

The Board must exercise and perform its power and functions, as far as financial and personnel matters are concerned, by- (a) developing and implementing all policies and programmes of the Entity pertaining to financial and personnel matters, within six months after the coming into operation of this Act, and subsequently amending such policies and programmes as and when necessary; (b) ensuring that the Entity adheres to sound financial management, effective and equitable human resource development and efficient office administration in a responsible, accountable and transparent manner; and (c) employing, disciplining, suspending or dismissing any employee of the Entity, with due regard to the provisions of the Labour Relations Act, 1995 (Act No 66 of 1995).

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Composition of the Board

Date No. of Designation (in terms of the Other Committees Name Date appointed resigned/ Meetings Public Entity Board structure) (e.g: Audit committee) term ended attended Executive Committee, Mr C Fortune Chairperson 1/04/2015 15 Tender Committee Ms B Bopape Vice Chairperson 1/04/2015 4 Mr R Williams Non - Executive Member 1/04/2015 4 Mr R Loko Non - Executive Member 1/04/2015 4

Mr V Barbery Non-Executive Member 1/04/2015 4 Part C Executive Committee, Mr T Cogang Non-Executive Member 1/04/2015 7 Tender Committee Executive Committee, Mr W Burger Non-Executive Member 1/04/2015 13 Tender Committee

Committees

No. of No. of Committee Name of members meetings held members EXCO 11 3 Mr C Fortune, Mr W Burger, Mr T Cogang Tender Committee 0 3 Mr C Fortune, Mr W Burger, Mr T Cogang

Remuneration of Board Members

Name Remuneration Other allowance Other re-imbursements Total

Ms B Bopape 20,800.00 - 861.88 21,661.88

M R Williams 18,000.00 - 19,438.00 37,438.00

Mr R Loko 14,000.00 - 20,654.04 34,654.04

Mr C. Fortune 73,647.00 - 5,155.84 78,802,84

Mr W. Burger 28,000.00 - 62,258.59 90,258.59

Mr T Cogang - 11,636.64 11,636.64

Mr V Barbery 14,000.00 - 37,385.31 51,385.31

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5. RISK MANAGEMENT AND INTERNAL CONTROL

The NCTA has a Risk Management Policy that is reviewed and updated on an annual basis.

NCTA's internal control framework

Clear delegation Clear delegation Clear delegation Clear delegation

Part C Part of power of power of power of power Clear accountability Schedule of Matters Code of Conduct reserved for the Group Strategy, Management reporting supported by Documented policies, against budgets, Board’s decision procedures, processes plans and forecasts Remit and terms of Annual financial and and standards supported by reference of Board technical budgets Committees Risk management Annual audit and Risk tolerance / policy and procedures other external Delegation of authority appetite clearly defined assurance providers to each level of Appropriate tools management including accounting, Internal audit and and risk systems other in-house review processes

The Audit and Risk Committee evaluates the effectiveness of the entity’s internal control policies, strategies and procedures on a quarterly basis.

Financial reporting

The Executive Committee meets on a monthly basis to evaluate the efficiency and effectiveness of the reports. The reports are thereafter submitted to the Board for endorsement.

*Internal controls over financial reporting are designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes.

Risk management

The NCTA has a Risk Management Policy in place which is reviewed and endorsed by the Board on an annual basis.

*Risk management is embedded into the operations of the organisation. We have been assisted by the Provincial Treasury's risk management unit in developing the model that is used by the NCTA. The model is based on the Barn Owl system developed and adopted by National Treasury.

Risk assessments are performed annually and coincide with the strategic planning process.

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6. INTERNAL AUDIT AND AUDIT COMMITTEES

The Provincial Audit Committee was fully functional during the period under review. Their responsibilities:

• Implementation of Audit Action Plans (16/17 outcomes) • Implementation of Risk Management Strategy

It should be noted that the NCTA is reporting to the Northern Cape Provincial I Audit Committee.

7. COMPLIANCE WITH LAWS AND REGULATIONS

The NCTA has implemented policies and procedures in order to ensure that we are compliant with all relevant Part C laws and regulations applicable to Section 3 C Provincial Public Entities.

8. FRAUD AND CORRUPTION

The NCTA has an Anti-fraud and Corruption Policy in place which is reviewed and endorsed by the Board on an annual basis.

9. MINIMISING CONFLICT OF INTEREST

The NCTA has a Human Resource Policy in place which is reviewed and endorsed by the Board annually.The policy address all matters relating to conflict of interest. No incidents relating to conflict of interest has been detected or reported for the period under review.

10. CODE OF CONDUCT

The NCTA has a Human Resources Policy in place which is reviewed and endorsed by the Board annually. The HR policy is inclusive of a code of conduct. No transgression of note has transpired within the period under review.

11. HEALTH SAFETY AND ENVIRONMENTAL ISSUES

NCTA remains committed to the health and safety of all staff members through the application of the Occupational Health and Safety Act. No incidents relating to Occupational Health and Safety occured in the year under review.

NCTA understands the effect that individual health and wellness has on the day to day operations of the entity since we operate in a very demanding environment. We provide specialized support and give direction in making the choices that build a healthy workplace through employee wellness initiatives.

The services rendered by this unit is centred on but not limited to:

• HIV/ AIDS counselling and support • Emotional and personal difficulties • Drug & Alcohol abuse • Managing stress and change • Trauma counselling • Work related issues (poor performance, absenteeism, retirement preparation) • Health promotion • Financial guidance

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PART D HUMAN RESOURCE MANAGEMENT

1. INTRODUCTION

The Human Resources unit provides human resource management programs and services aligned with the entities values of integrity, excellence and wellness to enable the entity to meet its business and service goals by:

• Promoting excellence in human resource management and providing leadership in the implementation of the entity’s Human Resources policies and Strategies, Part D Part • Providing a proactive human resource advisory, information and service function to the units of the Northern Cape Tourism Authority, • Providing information to the board and the various core units to support human resource decision making, and • Supporting employment related legislative compliance.

The Human Resources offered the entities employees, at all levels, an opportunity to improve their formal qualifications through recognised tertiary institutions. The focus is to build on their professional competencies, increase their knowledge, and improve their skill set to enable them to contribute to the NCTA’s mission and enhance their individual opportunities for future growth.

The entity recognises the wider potential benefits of investing in employee wellness, and we have used it to promote the achievement of other important objectives. Our strategic focus on the well-being of our employees has led to, amongst other things, improving employee engagement and building individual resilience; strengthening the employee value proposition to attract and retain the best talent; and building the organisation’s reputation and brand.

2. HUMAN RESOURCE OVERSIGHT STATISTICS

The public entity must provide the following key information on human resources. All the financial amounts must agree to the amounts disclosed in the annual financial statements. Where considered appropriate provide reasons for variances.

Personnel Cost by programme

Total Expenditure Personnel Personnel exp. Average personnel Programme for the entity Expenditure as a % of total No. of employees cost per employee (R’000) (R’000) exp. (R’000) (R’000)

Marketing 15,581 5,937 26.08 8 742

Administration 7,187 4,075 17.9 8 509

TOTAL 22768 10,012 43.98 16

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Personnel cost by salary band

Personnel % of personnel exp. to total Average personnel cost Level No. of employees Expenditure (R’000) personnel cost (R’000) per employee (R’000) Top Management 1,291 12.90 1 1.291 Senior Management 4,631 46.25 5 926 Middle Management 0 0 0 0 Junior Management 2,564 25.61 4 641 Skilled 1,271 12.69 4 318 Unskilled 256 2.55 2 128 TOTAL 10,012 45.31 16

Performance Rewards Part D

Performance Personnel Expenditure % of performance rewards to Programme rewards (R’000) total personnel cost (R’000) Top Management 0 0 0

Senior Management 5 253 5.47 Middle Management 0 0 0 Junior Management 2 49 1.91 Skilled 4 38 3.01 Unskilled 1 11 4.30 TOTAL 12 352 3.51

Training Costs

Personnel Personnel exp. Average personnel Directorate/ Training Expenditure as a % of total No. of employees cost per employee Business Unit Expenditure (R’000) exp. (R’000) (R’000) Marketing 5,937 48 0.8 5 9.6 Administration 4,075 15 0.4 1 15 TOTAL 10,012 63 0.6 6 10.5

Employment and vacancies

Personnel exp. Average personnel Training Programme 2016/2017 as a % of total No. of employees cost per employee Expenditure exp. (R’000) (R’000) Marketing 8 12 8 4 33% Administration *8 11 *8 4 36% TOTAL 16 23 16 8 35%

*One contract worker (Unskilled) – No post on establishment

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Employment by Occupational Category

2016/2017 2017/2018 2017/2018 Programme 2017/2018 Approved Posts % of vacancies No. of Employees No. of Employees Vacancies Top Management 1 1 1 0 0 Senior 5 5 5 0 0 Management Middle 0 0 0 0 0 Management Junior 4 6 4 2 33% Management Skilled 4 10 4 6 60% Unskilled 2 1 2 0 0 Part D Part TOTAL 16 23 16 8 35%

Note: One Contract Worker (Terrain Worker) appointed – No post available on establishment

Employment changes

The NCTA had maintained a low staff turnover rate over the past two financial years. We have had zero resignations/retirements during the period under review.

Employment at Employment at end of the Salary Band Appointments Terminations beginning of period period Top Management 1 0 0 1 Senior Management 5 0 0 5 Middle Management 0 0 0 0 Junior Management 4 0 0 4 Professional Qualified 0 0 0 0 Skilled 4 0 0 4 Unskilled *2 0 0 2 Total 16 0 0 16

* Unskilled is inclusive of one (1) Contract Worker (Terrain Worker)

Reasons for staff leaving

Reason Number % of total no. of staff leaving Death - 0 Resignation - 0 Dismissal - 0 Retirement - 0 Ill health - 0 Expiry of contract - 0 Other - 0 Total - 0

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Labour Relations: Misconduct and disciplinary action

Nature of disciplinary Action Number

Verbal Warning 0

Written Warning 0

Final Written warning 0

Dismissal 0

Equity Target and Employment Equity Status

MALE Part D Levels African Coloured Indian White Current Current Current Current

Top Management 0 0 0 0

Senior Management 0 3 0 0

Middle Management 0 0 0 0

Junior Management 2 0 0 0

Skilled 0 1 0 0

Semi-Skilled 0 0 0 0

Unskilled 1 0 0 0

TOTAL 3 4 0 0

* Unskilled includes one (1) Contract Worker

FEMALE

Levels African Coloured Indian White Current Current Current Current

Top Management 0 1 0 0

Senior Management 0 0 0 2

Middle Management 0 0 0 0

Junior Management 1 1 0 0

Skilled 3 0 0 0

Semi-Skilled 0 0 0 0

Unskilled 0 1 0 0

TOTAL 4 3 0 2

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MALE FEMALE Levels Disabled Staff Current Current

Top Management 0 0

Senior Management 0 0

Middle Management 0 0

Junior Management 0 0

Skilled 0 0

Semi-Skilled 0 0

Part D Part Unskilled 0 0

TOTAL 0 3 0

Vacancies are advertised with specific focus on attracting disabled staff in all occupational categories within the entity. However, no disabled candidates have applied for any of the advertised positions.

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PART E

FINANCIAL INFORMATION

1. STATEMENT OF RESPONSIBILITY

Statement of Responsibility for the Annual Financial Statements for the year ended 31 March 2018

The Chief Executive Officer is responsible for the preparation of the public entity’s annual financial statements and for the judgements made in this information.

The Chief Executive Officer is responsible for establishing, and implementing a system of internal control designed to provide reasonable assurance as to the integrity and reliability of the annual financial statements.

In my opinion, the financial statements fairly reflects the operations of the public entity for the financial year ended 31 March 2018.

The external auditors are engaged to express an independent opinion on the AFS of the public entity.

The NCTA’s annual financial statements for the year ended 31 March 2018 have been audited by the external Part E auditors and their report is presented on page 49.

The Annual Financial Statements of the public entity set out on page 53 to page 89 have been approved.

Sharron Lewis Chief Executive Officer: Northern Cape Tourism Authority

May 2018

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2. INTERNAL AUDIT AND AUDIT COMMITTEE GOVERNANCE INTERNAL AUDIT AND AUDIT COMMITTEE GOVERNANCE

Internal Audit Unit

Northern Cape Provincial Shared Internal Audit service provides internal audit service which provides combined assurance to stakeholders on the integrity of information provided, governance of the organization and assurance of existing internal control systems that are resilient to eminent change. The PFMA prescribes the need for the establishment of this function and it is also recommended by the King IV Report on Corporate Governance (King IV Report). The Northern Cape Tourism Authority has an outsourced internal audit function which provides the internal audit service.

The objective of the Internal Audit Function is to provide an assessment of the effectiveness of the organization’s system of internal control and risk management efforts. The Audit Committee is mandated to monitor the performance of the internal auditors, including reports submitted, budget proposed, and overall audit scope proposed for the year. In assisting the Accounting Authority and the Accounting Officer, Internal Audit must evaluate governance processes and provide adequate assurance on the effectiveness of internal processes. These include:

 incorporating a risk-based internal audit approach in the annual plan and execute audits accordingly;

Part E Part  providing adequate assurance on effective governance, risk management and internal control environment; and

 providing written assessment of the effectiveness of the organisation’s internal control processes.

The outsourced Internal Audit service provider has completed the audit projects as approved in their internal audit annual plan. Their audit approach was risk-based, and they reported to the Audit Committee on a quarterly basis.

Audit Committee and Attendance

The Audit Committee consists of external members listed hereunder and is required to meet at least two times per annum as per provisions of the Public Finance Management Act (PFMA). In terms of the approved Terms of Reference (NCPG Audit Committee Charter), five ordinary meetings and two joint meetings were held during the current year to consider the Annual Financial Statements, Quarterly Performance Reporting (financial and non-financial) and to discuss the Auditor-General of South Africa’s (AGSA) Audit and Management Reports.

Name Qualifications Internal or If internal, position Date Date No. of Meetings External in the department appointed Resigned attended

Ms. M Mbonambi Bachelor of External n/a 01 n/a 02 Accountancy December 2017 B.Com Honours

Certificate in Risk Management and Certificate in Board Governance

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Ms. A Mafuleka CA (SA) External n/a 01 n/a 02 December B Com – Honours 2017

Mr. VA Makaleni Master in Public External n/a 01 n/a 06 Management December 2014 Bachelor of Commerce (Accounting)

Postgraduate Diploma in Corporate Government

Management Advancement Programme (MAP)

Ms. S Vallabh Bachelor of Arts Internal Chief Director: 01 n/a 02 Performance, December Post Graduate Monitoring and 2017 Diploma in Library and Evaluations Information Science

Certificate Programme in Public Service Part E Management

Adv. DJ Block B.Luris, LLB, Higher External n/a 01 30 04 Diploma In Taxation December November 2014 2017

Mr. AL Kimmie B.Compt (Hons); External n/a 01 30 04 RGA; SAIPA; MBA; December November Reg. Public Service 2014 2017 Financial Officer

The Audit Committee noted that the Chief Executive Officer (CEO) attended all scheduled Audit Committee meetings. Therefore, the Audit Committee is satisfied that the Entity adhered to the provisions of the NCPG Audit Committee Charter. During the year under review the Committee consistently engaged with the Senior Management of the Entity, Internal Audit and the Auditor–General, individually and collectively, to address risks and challenges facing the Entity. A number of in-committee meetings were held to address control weaknesses and deviations within the Entity.

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AUDIT COMMITTEE REPORT AUDIT COMMITTEE REPORT

We are pleased to present our report for the financial year ended 31 March 2018. Audit Committee Responsibility The Audit 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. The Audit Committee also reports that it has adopted appropriate formal terms of reference as its Audit Committee Charter, has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein.

The Effectiveness of Internal Control Our review of the findings of the Internal Audit work, which was based on the risk assessments conducted in the entity revealed certain weaknesses, which were then raised with the Entity. The following internal audit work was completed during the year under review:

Part E Part . Governance Review . Consequence Management . Quarterly Follow up review . Performance Information . Revenue Management . Budget Management . Procurement and Contract Management . Expenditure Management . Human Resource Management

The following were areas of concern: . Alignment of the Strategic Plan and Annual Performance Plan objectives . Information Technology

Risk Management

The Entity’s risk management was reported to the Audit Committee on a quarterly basis and was seen as matter of concern which required management to focus on in terms of King IV report. The Audit Committee is satisfied that the actual management of risk is receiving attention. However, the Committee together with the Board and Management continue to refine a very dynamic risk profile of the organization.

The Board and Management has been advised to embed risk management throughout the Entity. Management should take full responsibility for the entire Enterprise Risk Management process and continue to support the Chief Executive Officer to even further enhance the performance of the Entity.

In-Year Management and Monthly/Quarterly Report The Audit Committee is satisfaction with the quality of the financial reports submitted which were in compliance with the statutory reporting framework.

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Evaluation of Financial Statements The Audit Committee has: • Reviewed and discussed the audited Annual Financial Statements to be included in the Annual Report, with the AGSA and the Accounting Officer; • Reviewed the Audit Report of the AGSA; • Reviewed the AGSA’s Management Report and Management’s response thereto; • Reviewed the Entity’s compliance with legal and regulatory provisions; and • Reviewed adjustments resulting from the audit.

One–on–One Meeting with the Accounting Officer

The Audit Committee met with the Accounting Officer to address unresolved issues at the Entity.

One–on–One Meetings with the Executive Authority

The Audit Committee apprised the Executive Authority on the performance of the Entity and intend to schedule a meeting in due course to address unresolved issues. The Audit Committee also submits Part E quarterly reports to the MEC to keep him informed on the activities of the committee.

Auditor-General’s Report We have reviewed the entity’s implementation plan for audit issues raised in the previous year and we are satisfied that the matters have been adequately.

The Audit Committee concurs and accepts the conclusions of the Auditor-General South Africa on the annual financial statements and is of the opinion that the audited annual financial statements be accepted and read together with the report of the Auditor-General South Africa.

______Masaccha Mbonambi Chairperson of the Audit Committee Northern Cape Tourism Authority Date: 10 August 2018

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3. Report of the Auditor-General to the Northern Cape Provincial Legislature on the Northern Cape Tourism Authority Report on the audit of the financial statements

Opinion 1. I have audited the financial statements of the Northern Cape Tourism Authority set out onpages 53 to 91, which comprise the statement of financial position as at 31 March 2018, statement of financial performance, statement of changes in net assets and cash flow statement 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, the financial position of the Northern Cape Tourism Authority as at 31 March 2018, and its financial performance and cash flows for the year then ended in accordance with Standards of Generally Recognised Accounting Practice (Standards of GRAP) and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA).

Part E Part Basis for opinion 3. 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 entity in accordance with the International Ethics Standards Board for Accountants’ Code of ethics for professional accountants (IESBA code) and 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 code.

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

Responsibilities of the accounting authority for the financial statements 6. The board of directors, which constitutes the accounting authority is responsible for the preparation and fair presentation of the financial statements in accordance with 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.Report on other legal and regulatory requirements

7. In preparing the financial statements, the accounting authority is responsible for assessing the Northern Cape Tourism Authority’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 accounting authority either intends to liquidate the public entity or to cease operations, or has no realistic alternative but to do so.

Auditor-general’s responsibilities for the audit of the financial statements 8. 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.

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

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Report on the audit of the annual performance report

Introduction and scope

10. 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 programmes presented in the annual performance report. I performed procedures to identify findings but not to gather evidence to express assurance.

11. 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/ measures 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.

12. 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 programme presented in the annual performance report of the entity for the year ended 31 March 2018: Part E Programmes Pages in the annual performance report

Programme 1 – Administration 16 – 19

Programme 2 - Destination marketing and promotion 20 – 33

13. 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.Achievement of planned targets

14. I did not raise any material findings on the usefulness and reliability of the reported performance information for the following programmes:

• Programme 1: Administration

• Programme 2: Destination marketing and promotion.

Other matter

15. I draw attention to the matter below.

Achievement of planned targets

16. Refer to the annual performance report on pages 16 to 43 for information on the achievement of planned targets for the year and explanations provided for the under/ over achievement of a number of targets.

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Report on the audit of compliance with legislation

Introduction and scope

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

18. 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.

Other information

19. 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 thereon and those selected programmes presented in the annual performance report that have been specifically reported on in the auditor’s report.

Part E Part 20. 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.

21. 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.

22. I did not receive the other information prior to the date of this auditor’s report. After I receive and read this information, and if I conclude that there is a material misstatement, 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.

Internal control deficiencies

23. 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.

Kimberley 31 July 2018

Auditing to build public confidence

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Annexure – Auditor-general’s responsibility for the audit

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 programmes and on the entity’s compliance with respect to the selected subject matters.

Financial statements

2. 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 Part E • conclude on the appropriateness of the board of directors, which constitutes the accounting authority’s use of the going concerns 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 Northern Cape Tourism Authority’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 the 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

Communication with those charged with governance

3. 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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4. FINANCIAL STATEMENTS

Northern Cape Tourism Authority

FinancialNorthern Statements Cape for theTourism year ended A31uthority March 2018. Financial Statements for the year ended 31 March 2018 GENERAL INFORMATION

BUSINESS ADDRESS 15 Villiers Road CBD Kimberley 8301

POSTAL ADDRESS Private Bag X5017 Kimberley 8300

BUSINESS Advancement of Tourism in the Northern Cape Province Part E Part BANKERS First National Bank

AUDITORS Auditor General of South - Africa

COUNTRY OF INCORPORATION AND DOMICILE South Africa

BOARD MEMBERS C Fortune (Chairperson) B Bopape (Deputy Chairperson) V Barbery RJ Williams RM Loko W Burger T Cogang

CHIEF EXECUTIVE OFFICER S Lewis

LEVEL OF ASSURANCE These financial statements have been audited in compliance with the applicable requirements of the PFMA Act 1 of 1999

EXECUTIVE AUTHORITY MEC of the Northern Cape Department of Economic Development and Tourism

PUBLISHED 31 May 2018

OTHER 1

OTHER 2

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NorthernNorthern CapeCape Tourism Tourism Authority Authority Financial Statements for the year ended 31 March 2018 Financial Statements for the year ended 31 March 2018. INDEX

The reports and statements set out below comprise the financial statements presented to the provincial legislature:

PAGEPage

Statement of Members Responsibility 553

Audit Committee Report 456 - 485

Members Report 564 - 575

Statement of Financial Position 586

Statement of Financial Performance 597

Statement of Changes in Net Assets 608

Cash Flow Statement 619

Accounting Policies 6210 –- 2375 Part E Part E

Notes to the Financial Statements 7624 –- 3789

GRAP Generally Recognised Accounting Practice

IAS International Accounting Standards

MEC Member of the Executive Council

MFMA Municipal Finance Management Act

PFMA Public Finance Management Act

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Northern Cape Tourism Authority

FinancialNorthern Statements Cape for Tourismthe year ended A 31uthority March 2018. Financial Statements for the year ended 31 March 2018 STATEMENT OF MEMBERS RESPONSIBILITY

The members are required by the Public Finance Management Act (Act 1 of 1999), to maintain adequate accounting records and are responsible for the content and integrity of the financial statements and related financial information included in this report. It is the responsibility of the members 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 members acknowledge that they are ultimately responsible for the system of internal financial control established by the entity and place considerable importance on maintaining a strong control environment. To enable the members to meet these Part E Part 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 members are 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 members have reviewed the entity’s cash flow forecast for the year to 31 March 2019 and, in the light of this review and the current financial position, they are satisfied that the entity has or has access to adequate resources to continue in operational existence for the foreseeable future.

The entity is wholly dependent on the Northern Cape Department of Economic Development and Tourism for continued funding of operations. The financial statements are prepared on the basis that the entity is a going concern and that the Northern Cape Department of Economic Development and Tourism has neither the intention nor the need to liquidate or curtail materially the scale of the entity.

The external auditors are responsible for independently reviewing and reporting on the entity's financial statements. The financial statements have been examined by the entity's external auditors and their report is presented on page xx.49 - 52.

The financial statements set out on pages 453 to - 8937, which have been prepared on the going concern basis, were approved by the accounting authority on 31 May 2018 and were signed on its behalf by:

C Fortune (Chairperson)

Kimberley Thursday, 31 May 2018

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Northern Cape Tourism Authority NorthernFinancial Statements Cape for Tourism the year ended A 31uthority March 2018. Financial Statements for the year ended 31 March 2018 MEMBERS REPORT

The members submit their report for the year ended 31 March 2018.

1. INCORPORATION

The entity was established on 1 April 2010 in terms of the Northern Cape Tourism Entity Act, No. 5 of 2008. The entity is listed as a Schedule 3C Public Entity, in terms of the Public Finance Management Act, No.1 of 1999.

2. REVIEW OF ACTIVITIES

Main business and operations

Is the advancement of Leisure and Business Tourism in the Northern Cape Province. Net surplus of the entity was R 1,100,803 (2017: surplus R 737,332).

3. GOING CONCERN

We draw attention to the fact that at 31 March 2018, the entity had an accumulated surplus of R 1,828,927 (16/17 R728,126) and that the entity's total assets exceed its liabilities by R 1,828,927 (16/17 R728,126). Part E 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 Entitiy is wholly dependant on the Northern Cape Department of Economic Development and Tourism for the continued funding of our operations. The Department of Economic Development and Tourism has neither the intention or the need to liquidate or curtail the scale of the entity.

4. SUBSEQUENT EVENTS

Subsequent to year end the Board of Directors are not aware of anything that occured that can have an impact on the NCTA .

5. MEMBERS' INTEREST IN CONTRACTS

The accounting authority and key management of the entity did not have any interest in contracts entered into during the year under review.

6. ACCOUNTING POLICIES

The following Standards on Generally Recognised Accounting Practice (GRAP) have been issued but is not yet effective, the entity did not early adopt this Standards.

GRAP 20: Related Party Disclosures; GRAP 32: Service Concession Arrangements: Grantor; GRAP 34: Seperate Financial Statements; GRAP 35; Consolidated Fianacial Statements; GRAP 36: Investment in Associates and Joint Ventures; GRAP 37: Joint Arrangements; GRAP 38: Disclosure of Interests in Other Entities; GRAP 38: GRAP 108: Statutory Receivables; GRAP 109: Accounting by Principals and Agents; and GRAP 110: Living and Non-living Resources.

All the standards as listed above will only be effective for financial years starting on or after 01 April 2018, as announced by the Minister of Finance.

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Northern Cape Tourism Authority

FinancialNorthern Statements Cape for theTourism year ended A 31uthority March 2018 Financial Statements for the year ended 31 March 2018 MEMBERS REPORT

7. ACCOUNTING AUTHORITY

The members of the entity during the year and to the date of this report are as follows:

Name Nationality C Fortune (Chairperson) South - African B Bopape (Deputy Chairperson) South - African V Barbery South - African RJ Williams South - African RM Loko South - African W Burger South - African T Cogang South - African

8. ACCOUNTING OFFICER

Part E Part The Chief Executive Officer (CEO) of the entity for the whole of the financial year under review was, Ms. S Lewis.

Business address 15 Villiers Road CBD Kimberley 8300

9. CONTROLLING ENTITY

The Executive Authority of the entity is the MEC of the Northern Cape Department of Economic Development and Tourism.

10. AUDITORS

Auditor General of South - Africa will continue in office for the next financial period.

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Northern Cape Tourism Authority

NorthernFinancial Statements Cape for Tourismthe year ended A 31uthority March 2018 Financial Statements for the year ended 31 March 2018 STATEMENTStatement of OF Financial FINANCIAL Position POSITION as at 31 March 2018 2018 2017 Note(s) R R

Assets Current Assets Receivables from exchange transactions 2 173,416 458,933 Prepayments 19 246,893 66,677 Cash and cash equivalents 3 2,881,031 1,979,584 3,301,340 2,505,194

Non-Current Assets Property, plant and equipment 4 1,626,525 1,117,613 Intangible assets 5 37,238 24,378 Other financial assets 17 43,889 43,889 1,707,652 1,185,880 Total Assets 5,008,992 3,691,074 Part E Liabilities Current Liabilities Finance lease obligation 20 7,034 1,610 Operating lease liability 18 117,354 63,765 Payables from exchange transactions 6 1,922,053 1,247,585 Taxes and transfers payable (non-exchange) 21 - 469,807 2,046,441 1,782,767

Non-Current Liabilities Finance lease obligation 20 8,661 - Operating lease liability 18 - 117,354 Provisions 7 1,124,966 1,062,830 1,133,627 1,180,184 Total Liabilities 3,180,068 2,962,951 Net Assets 1,828,924 728,123 Accumulated surplus 1,828,927 728,126

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Northern Cape Tourism Authority FinancialNorthern Statements Cape for Tourismthe year ended A 31uthority March 2018 Financial Statements for the year ended 31 March 2018 STATEMENT OF FINANCIAL PERFORMANCE 2018 2017 Note(s) R R

Revenue Revenue from exchange transactions Rendering of services 9.1 250,608 1,188,053 Interest received - investment 10 266,962 278,056 Gain on disposal of assets and liabilities - 4,632 Total revenue from exchange transactions 517,570 1,470,741

Revenue from non-exchange transactions Transfer revenue Government grants & subsidies 9 23,350,828 21,074,193 Part E Part Total revenue 23,868,398 22,544,934

Expenditure Employee cost 12 (9,990,783) (9,706,145) Remuneration of board members (168,447) (147,885) Depreciation and amortisation (160,828) (117,705) Finance costs 11 (633) (823) Lease rentals on operating lease 18 (643,073) (643,074) Debt Impairment 24 - (74,189) Loss on disposal of assets and liabilities (5,627) - General Expenses 23 (11,798,204) (11,117,781) Total expenditure (22,767,595) (21,807,602) Surplus for the year 1,100,803 737,332

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Northern Cape Tourism Authority NorthernFinancial Statements Cape for Tourismthe year ended A 31uthority March 2018 Financial Statements for the year ended 31 March 2018 STATEMENT OF CHANGES IN NET ASSETS Accumulated Total net surplus assets R R

Balance at 01 April 2016 (9,206) (9,206) Changes in net assets Surplus for the year 737,332 737,332 Total changes 737,332 737,332 Balance at 01 April 2017 728,124 728,124 Changes in net assets Surplus for the year 1,100,803 1,100,803 Total changes 1,100,803 1,100,803 Balance at 31 March 2018 1,828,927 1,828,927 Part E

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Northern Cape Tourism Authority

FinancialNorthern Statements Cape for theTourism year ended A31uthority March 2018 Financial Statements for the year ended 31 March 2018 Cash Flow Statement 2018 2017 Note(s) R R

Cash flows from operating activities

Receipts Cash receipts from customers 23,437,905 21,991,357 Interest income 266,962 278,056 23,704,867 22,269,413

Payments Cash Paid to Suppliers & Employees (22,134,273) (21,705,264) Finance Costs (633) (823)

Part E Part (22,134,906) (21,706,087) Net cash flows from operating activities 8 1,569,961 563,326

Cash flows from investing activities

Purchase of property, plant and equipment 4 (666,873) (694,090) Proceeds from sale of property, plant and equipment 4 5,627 6,001 Purchase of other intangible assets 5 (21,353) (8,398) Net cash flows from investing activities (682,599) (696,487)

Cash flows from financing activities

Finance lease payments 14,085 (9,706)

Net increase/(decrease) in cash and cash equivalents 901,447 (142,867) Cash and cash equivalents at the beginning of the year 1,979,584 2,122,451 Cash and cash equivalents at the end of the year 3 2,881,031 1,979,584

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NorthernFinancial Statements Cape for Tourismthe year ended A 31uthority March 2018 Financial Statements for the year ended 31 March 2018 ACCOUNTING POLICIES

1. Presentation of Financial Statements

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.

In the absence of an issued and effective Standard of GRAP, accounting policies for material transactions, events or conditions were developed in accordance with paragraphs 8, 10 and 11 of GRAP 3 as read with Directive 5.

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

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FinancialNorthern Statements Cape for Tourismthe year ended A 31uthority March 2018 Financial Statements for the year ended 31 March 2018 ACCOUNTING POLICIES

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

The following Standards of GRAP have been issued and are effective:

GRAP 1 Presentation of financial statements GRAP 2 Cash flow statements GRAP 3 Accounting policies, changes in accounting estimates and errors GRAP 4 The effect of changes in foreign exchange rates GRAP 5 Borrowing Cost GRAP 6 Consolidated and separate financial statements GRAP 7 Investments in associates GRAP 8 Interest in joint ventures GRAP 9 Revenue from exchange transactions GRAP 10 Financial reporting in a Hyperinflationary Economies

Part E Part GRAP 11 Construction Contracts GRAP 12 Inventories GRAP 13 Leases GRAP 14 Events after reporting date GRAP 16 Investment property GRAP 17 Property, Plant and Equipment GRAP 18 Segment Reporting GRAP 19 Provisions, Contingent liabilities and assets GRAP 21 Impairment of Non-cash-generating assets GRAP 23 Revenue from Non-Exchange transactions GRAP 24 Presentation of budget information in the financial statements GRAP 25 Employee benefits GRAP 26 Impairment of Cash-generating assets GRAP 27 Agriculture GRAP 31 Intangible Assets GRAP 100 Discounted Operations GRAP 103 Heritage assets GRAP 104 Financial Instruments GRAP 105 Transfer of functions between entities under common control GRAP 106 Transfer of functions between entities not under common control GRAP 107 Mergers

Standards, Amendments to Standards and interpretations issued but not yet effective

The following Standards on Generally Recognised Accounting Practice (GRAP) have been issued but is not yet effective, the entity did not early adopt this Standards.

GRAP 20: Related Party Disclosures; GRAP 32: Service Concession Arrangements: Grantor; GRAP 34: Seperate Financial Statements; GRAP 35; Consolidated Fianacial Statements; GRAP 36: Investment in Associates and Joint Ventures; GRAP 37: Joint Arrangements; GRAP 38: Disclosure of Interests in Other Entities; GRAP 108: Statutory Receivables; GRAP 109: Accounting by Principals and Agents; and GRAP 110: Living and Non-living Resources. All the standards as listed above will only be effective for financial years starting on or after 01 April 2018, as announced by the Minister of Finance.

Nature and impact once implimented:

GRAP 32, Service Concession Arrangements: Grantor; GRAP 108: Statutory Receivables; GRAP 109: Accounting by Principals and Agents; and IGRAP 17: Service Concession Arrangements where a Grantor controls a Significant Residual Interest in an Asset.

The effectiveness of these standards will not have an effect on the financial statements / accounting policies of the entity, as the entity does not have any related transactions or activities that falls within the scope of these standards.

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Northern Cape Tourism Authority NorthernFinancial Statements Cape for Tourism the year ended A 31uthority March 2018 Financial Statements for the year ended 31 March 2018 ACCOUNTING POLICIES

1.1 Presentation Currency

These annual financial statements are presented in South African Rand rounded off to the nearest Rand, which is the functional currency of the entity.

1.2 Going concern assumption

These financial statements have been prepared based on the expectation that the entity will continue to operate as a going concern for at least the next 12 months.

1.3 Significant judgements and sources 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 is 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 Part E

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 surplus 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 on a portfolio basis, 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 loan balances in the portfolio and scaled to the estimated loss emergence period.

Fair value estimation

The carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the entity for similar financial instruments.

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 goodwill and tangible assets are inherently uncertain and could materially change over time.

Provisions

Provisions were raised and management determined an estimate based on the information available. Additional disclosure of these estimates of provisions are included in note 7 - Provisions.

Allowance for doubtful debts

On debtors 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 debtors carrying amount and the present value of estimated future cash flows discounted at the effective interest rate, computed at initial recognition.

1.4 Conditional grants and receipts

Revenue received from conditional grants, donations and funding are recognised as revenue to the extent that the entity has complied with any of the criteria, conditions or obligations embodied in the agreement. To the extent that the criteria, conditions or obligations have not been met a liability is recognised.

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NorthernNorthern CapeCape Tourism Tourism Authority Authority Financial Statements for the year ended 31 March 2018 Financial Statements for the year ended 31 March 2018 ACCOUNTING POLICIES

1.5 Property, plant and equipment

Property, plant and equipment are tangible non-current 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 is 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.

Part E Part 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.

The initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located is also included in the cost of property, plant and equipment, where the entity is obligated to incur such expenditure, and where the obligation arises as a result of acquiring the asset or using it for purposes other than the production of inventories.

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.

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.

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 Furniture and fixtures Straight line 12 * Motor vehicles Straight line 5 / 200000km Office equipment Straight line 15 IT equipment Straight line 5**

*Furniture and fixtures includes certain assets that were assessed to have an average life of only 5 years as a result of the nature of the assets. **IT equipment includes certain assets that have been assessed to have an average life of 15 years, as a result of the nature of the assets.

The depreciable amount of an asset is allocated on a systematic basis over its useful life.

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.

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1.5 Property, plant and equipment (continued)

The depreciation method used reflects the pattern in which the asset’s future economic benefits or service potential are expected to be consumed by the entity. The depreciation method applied to an asset is reviewed at least at each reporting date and, if there has been a significant change in the expected pattern of consumption of the future economic benefits or service potential embodied in the asset, the method is changed to reflect the changed pattern. Such a change is accounted for as a change in an accounting estimate.

The entity assesses at each reporting date whether there is any indication that the entity expectations about the residual value and the useful life of an asset have changed since the preceding reporting date. If any such indication exists, the entity revises the expected useful life and/or residual value accordingly. The change is accounted for as a change in an accounting estimate.

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

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. Part E 1.6 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).

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.

1.7 Events after reporting date

Events after reporting date are those events, both favourable and unfavourable, that occur between the reporting date and the date when the financial statements are authorised for issue. Two types of events can be identified:  those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date); and  those that are indicative of conditions that arose after the reporting date (non-adjusting events after the reporting date).

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1.7 Events after reporting date (continued)

The entity will adjust the amount recognised in the financial statements to reflect adjusting events after the reporting date once the event occurred.

The entity will disclose the nature of the event and an estimate of its financial effect or a statement that such estimate cannot be made in respect of all material non-adjusting events, where non-disclosure could influence the economic decisions of users taken on the basis of the financial statements.

1.8 Intangible assets

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 Part E Part  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.

Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values as follows:

Item Useful life Computer software, other 5 years

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 arising from the derecognition of an intangible assets is included in surplus or deficit when the asset is derecognised (unless the Standard of GRAP on leases requires otherwise on a sale and leaseback).

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NorthernFinancial Statements Cape for Tourism the year ended Authority 31 March 2018 Financial Statements for the year ended 31 March 2018 ACCOUNTING POLICIES

1.9 Changes in accounting policies, estimates and errors

Changes in accounting policies that are effected by management have been applied retrospectively in accordance with GRAP 3 requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the change in policy. In such cases the public entity shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.

Changes in accounting estimates are applied retrospectively in accordance with GRAP 3 requirements. Details of changes in accounting estimates are disclosed in the notes to the annual financial statements where applicable.

Correction of errors is applied retrospectively in the period in which the error has occurred in accordance with GRAP 3 requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the error. In such cases the public entity shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.

1.10 Comparative figures

Where necessary, comparative figures have been reclassified to conform to changes in presentation in the current year.

1.11 Events after the reporting date Part E Recognised amounts in the financial statements are adjusted to reflect events arising after the balance sheet date that provide evidence of conditions that existed at the balance sheet date. Events after the balance sheet date that are indicative of conditions that arose after the balance sheet date are dealt with by way of a note to the financial statements.

1.12 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.

Finance leases - lessee

Finance leases are recognised as assets and liabilities in the statement of financial position at amounts equal to the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.

The discount rate used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease.

Minimum lease payments are apportioned between the finance charge and reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of on the remaining balance of the liability.

Any contingent rents are expensed in the period in which they are incurred.

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.

1.13 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.

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1.13 Impairment of non-cash-generating assets (continued)

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. Part E Part 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 non-cash-generating assets or cash- generating assets, are as follows:

[Specify judgements made]

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 test 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 period, that intangible asset was tested for impairment before the end of the current reporting period.

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1.13 Impairment of non-cash-generating assets (continued)

Value in use

Value in use of non-cash-generating assets is the present value of the non-cash-generating 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. Part E 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.

When the amount estimated for an impairment loss is greater than the carrying amount of the non-cash-generating asset to which it relates, the entity recognises a liability only to the extent that is a requirement in the Standards of GRAP.

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 assess 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.

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.

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1.14 Share capital / contributed capital

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

1.15 Employee benefits

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.

A constructive obligation is an obligation that derives from an entity’s actions where by an established pattern of past practice, published policies or a sufficiently specific current statement, the entity has indicated to other parties that it will accept certain

Part E Part responsibilities and as a result, the entity has created a valid expectation on the part of those other parties that it will discharge those responsibilities.

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 recognise 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 recognise 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 measure 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 recognise 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.

1.16 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 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.

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Northern Cape Tourism Authority Northern Cape Tourism Authority Financial Statements Statements for for the the year year ended ended 31 March31 March 2018 2018 ACCOUNTING POLICIES

1.16 Provisions and contingencies (continued)

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 surplus.

If an entity has a contract that is onerous, the present obligation (net of recoveries) under the contract is recognised and Part E measured as a provision.

Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in note 16.

A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument.

Loan commitment is a firm commitment to provide credit under pre-specified terms and conditions.

The entity recognises a provision for financial guarantees and loan commitments when it is probable that an outflow of resources embodying economic benefits and service potential will be required to settle the obligation and a reliable estimate of the obligation can be made.

Determining whether an outflow of resources is probable in relation to financial guarantees requires judgement. Indications that an outflow of resources may be probable are:  financial difficulty of the debtor;  defaults or delinquencies in interest and capital repayments by the debtor;  breaches of the terms of the debt instrument that result in it being payable earlier than the agreed term and the ability of the debtor to settle its obligation on the amended terms; and  a decline in prevailing economic circumstances (e.g. high interest rates, inflation and unemployment) that impact on the ability of entities to repay their obligations.

Where a fee is received by the entity for issuing a financial guarantee and/or where a fee is charged on loan commitments, it is considered in determining the best estimate of the amount required to settle the obligation at reporting date. Where a fee is charged and the entity considers that an outflow of economic resources is probable, an entity recognises the obligation at the higher of:  the amount determined using in the Standard of GRAP on Provisions, Contingent Liabilities and Contingent Assets; and  the amount of the fee initially recognised less, where appropriate, cumulative amortisation recognised in accordance with the Standard of GRAP on Revenue from Exchange Transactions.

1.17 Revenue from exchange transactions

Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in net assets, other than increases relating to contributions from owners.

An exchange transaction is one in which the entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange.

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.

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FinancialNorthern Statements Cape for Tourism the year ended A uthority31 March 2018 Financial Statements for the year ended 31 March 2018 ACCOUNTING POLICIES

1.17 Revenue from exchange transactions (continued)

Measurement

Revenue is measured at the fair value of the consideration received or receivable, net of trade discounts and volume rebates.

Rendering of services

When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the reporting date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied:  the amount of revenue can be measured reliably;  it is probable that the economic benefits or service potential associated with the transaction will flow to the entity;  the stage of completion of the transaction at the reporting date can be measured reliably; and  the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

Part E Part When services are performed by an indeterminate number of acts over a specified time frame, revenue is recognised on a straight line basis over the specified time frame unless there is evidence that some other method better represents the stage of completion. When a specific act is much more significant than any other acts, the recognition of revenue is postponed until the significant act is executed.

When the outcome of the tran€saction involving the rendering of services cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Service revenue is recognised by reference to the stage of completion of the transaction at the reporting date. Stage of completion is determined by the proportion that costs incurred to date bear to the total estimated costs of the transaction.

Interest, royalties and dividends

Revenue arising from the use by others of entity assets yielding interest, royalties and dividends is recognised when:  It is probable that the economic benefits or service potential associated with the transaction will flow to the entity, and  The amount of the revenue can be measured reliably.

Interest is recognised, in surplus or deficit, using the effective interest rate method.

Service fees included in the price of the product are recognised as revenue over the period during which the service is performed.

1.18 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.

Control of an asset arise when the entity can use or otherwise benefit from the asset in pursuit of its objectives and can exclude or otherwise regulate the access of others to that benefit.

Exchange transactions are transactions in which one entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of cash, goods, services, or use of assets) to another entity in exchange.

Expenses paid through the tax system are amounts that are available to beneficiaries regardless of whether or not they pay taxes.

Fines are economic benefits or service potential received or receivable by entities, as determined by a court or other law enforcement body, as a consequence of the breach of laws or regulations.

Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, an entity either receives value from another entity without directly giving approximately equal value in exchange, or gives value to another entity without directly receiving approximately equal value in exchange.

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Northern Cape Tourism Authority Northern Cape Tourism Authority FinancialFinancial Statements for for the the year year ended ended 31 31 March March 2018 2018 ACCOUNTING POLICIES

1.18 Revenue from non-exchange transactions (continued)

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.

Tax expenditures are preferential provisions of the tax law that provide certain taxpayers with concessions that are not available to others.

The taxable event is the event that the government, legislature or other authority has determined will be subject to taxation.

Taxes are economic benefits or service potential compulsorily paid or payable to entities, in accordance with laws and or regulations, established to provide revenue to government. Taxes do not include fines or other penalties imposed for breaches of the law.

Transfers are inflows of future economic benefits or service potential from non-exchange transactions, other than taxes.

Recognition Part E

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 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.

Transfers

Apart from Services in kind, which are not recognised, the entity recognises an asset in respect of transfers when the transferred resources meet the definition of an asset and satisfy the criteria for recognition as an asset.

The entity recognises an asset in respect of transfers when the transferred resources meet the definition of an asset and satisfy the criteria for recognition as an asset.

Transferred assets are measured at their fair value as at the date of acquisition.

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.

1.19 Investment income

Investment income is recognised on a time-proportion basis using the effective interest method.

1.20 Borrowing costs

Borrowing costs are interest and other expenses incurred by an entity in connection with the borrowing of funds.

Borrowing costs are recognised as an expense in the period in which they are incurred.

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Northern Cape Tourism Authority FinancialNorthern Statements Cape for theTourism year ended A31uthority March 2018 Financial Statements for the year ended 31 March 2018 ACCOUNTING POLICIES

1.21 Fruitless and wasteful expenditure

Fruitless expenditure means expenditure which was made in vain and would have been avoided had reasonable care been exercised.

All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the statement of financial performance 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.

1.22 Irregular expenditure

Irregular expenditure as defined in section 1 of the PFMA is 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; or Part E Part (c) any provincial legislation providing for procurement procedures in that provincial government.

National Treasury practice note no. 4 of 2008/2009 which was issued in terms of sections 76(1) to 76(4) of the PFMA requires the following (effective from 1 April 2008):

Irregular expenditure that was incurred and identified during the current financial year and which was condoned before year end and/or before finalisation of the financial statements must also be recorded appropriately in the irregular expenditure register. In such an instance, no further action is also required with the exception of updating the note to the financial statements.

Irregular expenditure that was incurred and identified during the current financial year and for which condonement is being awaited at year end must be recorded in the irregular expenditure register. No further action is required with the exception of updating the note to the financial statements.

Where irregular expenditure was incurred in the previous financial year and is only condoned in the following financial year, the register and the disclosure note to the financial statements must be updated with the amount condoned.

Irregular expenditure that was incurred and identified during the current financial year and which was not condoned by the National Treasury or the relevant authority must be recorded appropriately in the irregular expenditure register. If liability for the irregular expenditure can be attributed to a person, a debt account must be created if such a person is liable in law. Immediate steps must thereafter be taken to recover the amount from the person concerned. If recovery is not possible, the accounting officer or accounting authority may write off the amount as debt impairment and disclose such in the relevant note to the financial statements. The irregular expenditure register must also be updated accordingly. If the irregular expenditure has not been condoned and no person is liable in law, the expenditure related thereto must remain against the relevant programme/expenditure item, be disclosed as such in the note to the financial statements and updated accordingly in the irregular expenditure register.

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Northern Cape Tourism Authority

FinancialNorthern Statements Cape for Tourism the year ended A 31uthority March 2018 Financial Statements for the year ended 31 March 2018 Notes to the Financial Statements 2018 2017 R R

2. Receivables from exchange transactions

Trade receivables 34,248 392,000 SARS 33,522 - Other receivables 77,716 28,167 Staff advances 27,930 38,766 173,416 458,933

Trade and other receivables pledged as security

No trade and other receivables were pledged as security during the financial year.

The carrying amount reported in the statement of financial position for trade and other receivables approximate fair value due to the short time period between initiation and settlement thereof. The effect of discounting is not material.

Trade and other receivables past due but not impaired Part E Trade and other receivables which are less than 3 months past due are not considered to be impaired. At 31 March 2018, R69,248 (2017: R 420,170) were past due but not impaired.

The ageing of amounts past due but not impaired is as follows:

Current 99,385 - 1 month past due - 38,766 3 months past due 69,248 420,170

Trade and other receivables impaired

As of 31 March 2018, trade and other receivables of R 74,558 (2017: R 74,558) were impaired and provided for.

The amount of the provision was R (74,558) as of 31 March 2018 (2017: R (74,558)).

The ageing of these trade receivables are as follows:

Over 6 months 74,588 74,558

The carrying amount of trade and other receivables are denominated in the following currencies:

Rand 168,634 458,936

Reconciliation of provision for impairment of trade and other receivables

Opening balance 74,558 369 Provision for impairment - 74,189 74,558 74,558

The creation and release of provision for impaired receivables have been included in operating expenses in surplus or deficit.

3. Cash and cash equivalents

Cash and cash equivalents consist of:

Cash on hand - 386 Bank balances 2,881,031 1,979,198 2,881,031 1,979,584

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Northern Cape Tourism Authority Northern Cape Tourism Authority Financial Statements forfor the the year year endedended 3131 MarchMarch 2018 2018 Notes to the Financial Statements 2018 2017 R R

3. Cash and cash equivalents (continued)

Credit quality of cash at bank and short term deposits, excluding cash on hand

The credit quality of cash at bank and short term deposits, excluding cash on hand that are neither past due nor impaired can be assessed by reference to external credit ratings (if available) or historical information about counterparty default rates:

Credit rating AAA 2,881,031 1,979,198

4. Property, plant and equipment

Part E Part 2018 2017 Cost / Accumulated Carrying value Cost / Accumulated Carrying value Valuation depreciation Valuation depreciation and and accumulated accumulated impairment impairment Furniture and fixtures 502,549 (204,651) 297,898 462,279 (173,011) 289,268 Motor vehicles 1,040,121 (28,520) 1,011,601 530,193 - 530,193 Office equipment 349,446 (173,220) 176,226 305,594 (124,381) 181,213 IT equipment 312,101 (171,301) 140,800 265,062 (148,123) 116,939 Total 2,204,217 (577,692) 1,626,525 1,563,128 (445,515) 1,117,613

Reconciliation of property, plant and equipment - 2018

Opening Additions Disposals Depreciation Total balance Furniture and fixtures 289,268 49,805 (2,425) (38,750) 297,898 Motor vehicles 530,193 509,928 - (28,520) 1,011,601 Office equipment 181,213 44,427 (419) (48,995) 176,226 IT equipment 116,939 62,713 (2,783) (36,069) 140,800 1,117,613 666,873 (5,627) (152,334) 1,626,525

Reconciliation of property, plant and equipment - 2017

Opening Additions Disposals Depreciation Total balance Furniture and fixtures 290,892 34,228 (554) (35,298) 289,268 Motor vehicles - 530,193 - - 530,193 Office equipment 127,137 90,335 (112) (36,147) 181,213 IT equipment 114,781 39,334 (703) (36,473) 116,939 532,810 694,090 (1,369) (107,918) 1,117,613

Pledged as security

Finance lease assets with a carrying value of R15 568 (2016/17: R1 477) have been pledged for security for the finance lease obligation as disclosed in note 21.

Assets subject to finance lease (Net carrying amount)

Office equipment 15,568 1,477

A register containing the information required by the Public Finance Management Act is available for inspection at the registered office of the entity.

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Northern Cape Tourism Authority Northern Cape Tourism Authority Financial StatementsStatements for for the the year year ended ended 31 31 March March 2018 2018 Notes to the Financial Statements 2018 2017 R R

5. Intangible assets

2018 2017 Cost / Accumulated Carrying value Cost / Accumulated Carrying value Valuation amortisation Valuation amortisation and and accumulated accumulated impairment impairment Computer software 197,840 (160,602) 37,238 176,487 (152,109) 24,378

I

Reconciliation of intangible assets - 2018

Opening Additions Amortisation Total

balance Part E Computer software 24,378 21,353 (8,493) 37,238

Reconciliation of intangible assets - 2017

Opening Additions Amortisation Total balance Computer software 25,766 8,398 (9,786) 24,378

6. Payables from exchange transactions

Trade payables 1,078,628 627,561 Other payables 313,267 96,660 Short term Employee Benefit: Thirteen Cheque 156,311 145,146 Short term Employee Benefit: Leave 373,847 378,218 1,922,053 1,247,585

The carrying amount reported in the balance sheet for trade and other payables approximate fair value due to the short time period between initiation and settlement thereof. The effect of discounting is not material.

The carrying amount of trade and other payables are denominated in the following currencies:

Rand 1,901,298 1,247,585

7. Provisions

Reconciliation of provisions - 2018

Opening Additions Total Balance Employee Benefit Cost 1,062,830 62,136 1,124,966

Reconciliation of provisions - 2017

Opening Additions Utilised Total Balance during the year Employee Benefit Cost 1,323,630 61,251 (322,051) 1,062,830

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Northern Cape Tourism Authority

NorthernFinancial Statements Cape for Tourismthe year ended A 31uthority March 2018 Financial Statements for the year ended 31 March 2018 Notes to the Financial Statements 2018 2017 R R

8. Cash generated from operations

Surplus 1,100,803 737,332 Adjustments for: Depreciation and amortisation 160,828 117,705 Loss on sale of assets and liabilities - (4,632) Debt impairment - 74,189 Movements in provisions 68,929 (112,118) Other non - cash items (63,765) 493 Changes in working capital: Inventories - - Receivables from exchange transactions 306,270 (279,373)

Part E Part Trade and other payables from Non-Exchange transactions (469,807) (30,193) Prepayments (180,216) (66,677) Payables from exchange transactions 646,919 126,600 1,569,961 563,326

9. Revenue: Non - Exchange and Exchange Revenue

Northern Cape Department of Economic Development and Tourism 21,499,000 20,409,000 Contributions - Government Entities 1,709,907 665,193 Services in Kind 141,921 -

23,350,828 21,074,193

9.1 Advertising Campaing Contributions

Income - Cape Rapport 25,000 - Income - Namibia 39,248 - Income - Getaway 105,000 100,520 Contribution Advertising Campaigns - 50,000 Income - Partnership Projects - 605,115 Income - Meetings Africa - 5,418 Income - Bloodhound - 427,000 Income - Indaba 81,360 - Total Exchange Revenue from Advertising and campaing contributions 250,608 1,188,053

10. Investment revenue

Interest revenue Bank 266,962 278,056

The amount included in Investment revenue arising from exchange and non exchange transactions amounted to R 266,962 (2016/17: R278,056). The Income is earned from the Money Market Bank Account

11. Finance costs

Finance leases 633 823

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Northern Cape Tourism Authority

NorthernFinancial Statements Cape for Tourismthe year ended A 31uthority March 2018 Financial Statements for the year ended 31 March 2018 Notes to the Financial Statements 2018 2017 R R

12. Employee related costs

Basic Salary 7,256,512 7,076,998 Medical aid - company contributions 373,067 314,538 UIF 27,095 28,395 Leave pay provision charge 57,764 225,835 Provident fund 1,202,938 1,083,148 Bonusses 480,100 464,096 Travel, motor car, accommodation, subsistence and other allowances 40,258 23,057 Car allowance 72,000 72,000 Housing benefits and allowances 129,600 153,900 Performance bonusses 351,449 264,178 9,990,783 9,706,145

Remuneration of Chief Executive Officer Part E Annual Remuneration 958,565 907,976 Annual Bonus 79,372 75,235 Travel Allowance 13,328 6,007 Subsistence - Non Taxable 77,610 38,578 Provident Fund 180,082 171,735 Cash Allowance 60,099 60,711 1,369,056 1,260,242

Remuneration of Chief Finance Officer

Annual Remuneration 586,245 546,396 Annual and Performance Bonus 110,404 78,194 Travel Allowance 13,840 18,915 Cash Allowance 199,373 185,809 Provident Fund 110,705 103,174 Subsistence - non taxable 16,841 29,754 1,037,408 962,242

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Northern Cape Tourism Authority FinancialNorthern Statements Cape for Tourismthe year ended A 31uthority March 2018 Financial Statements for the year ended 31 March 2018 Notes to the Financial Statements 2018 2017 R R

13. Remuneration of other key management

General Manager - HR Basic Salary 433,503 399,269 Annual and Performance Bonus 80,916 56,579 Travel Allownace 1,993 1,683 Cash Allownace 148,004 139,958 Provident Fund 81,811 75,120 Subsistence - Non Taxable 1,781 3,392 748,008 676,001

Part E Part General Manager - Office Basic Salary 435,024 398,095 Annual and Performance Bonus 80,917 56,579 Cash Allowance 148,004 139,958 Provident Fund 81,812 75,120 Travel Allowance 4,910 - Subsistence Non Taxable 9,555 - 760,222 669,752

General Manager - Marketing Basic Salary 771,466 718,645 Annual and Performance Bonus 66,774 36,147 Travel Allowance 2,060 12,851 Cash Allowance 116,571 116,802 Provident Fund 144,677 135,266 Subsistence Non Taxable 195,923 147,864 1,297,471 1,167,575

General Manager - Mice Basic Salary 586,245 546,248 Annual and Performance Bonus 84,000 78,194 Travel Allowance 103,226 78,090 Cash Allowance 127,373 113,809 Provident Fund 110,706 103,174 Subsistence Non Taxable 125,435 127,211 1,136,985 1,046,726

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Northern Cape Tourism Authority FinancialNorthern Statements Cape for Tourismthe year ended A 31uthority March 2018 Financial Statements for the year ended 31 March 2018 Notes to the Financial Statements 2018 2017 R R

14. Risk management

Interest rate risk

As the entity has no significant interest-bearing assets, the entity’s income and operating cash flows are substantially independent of changes in market interest rates.

Credit risk

Credit risk consists mainly of cash deposits, cash equivalents, derivative financial instruments and trade debtors. The entity only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party.

Trade receivables comprise a widespread customer base. Management evaluated credit risk relating to customers on an ongoing basis. If customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the board. Part E Financial assets exposed to credit risk at year end were as follows:

` Financial instrument 2018 2017 Recievables from exchange transactions 173,416 458,933 Other financial assets 43,889 43,889 Cash and cash equivalents 2,881,031 1,979,584

Liquidity risk

The entity’s risk to liquidity is a result of the funds available to cover future commitments. The entity manages liquidity risk through an ongoing review of future commitments and credit facilities.

Cash flow forecasts are prepared and adequate utilised borrowing facilities are monitored.

The table below analyses the entity’s financial liabilities and net-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the statement of financial position 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 2018 Less than 1 Between 1 Between 2 Over 5 years year and 2 years and 5 years Payables from Exchange (1,922,053) - - - Finance Lease Obligation (7,034) (8,661) - -

At 31 March 2017 Less than 1 Between 1 Between 2 Over 5 years year and 2 years and 5 years Payables from Exchange (1,247,585) - - - Finance Leases (1,610) - - - Payables from Non-Exchange (469,807) - - -

Financial risk management

The entity’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk.

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Northern Cape Tourism Authority FinancialNorthern Statements Cape for theTourism year ended A31uthority March 2018 Financial Statements for the year ended 31 March 2018 Notes to the Financial Statements 2018 2017 R R

15. Related parties

` Relationships Members Refer to members' report note Controlling entity Northern Cape Department of Economic Development and Tourism Key Managment Refer to Note 12 & 13 Entities under common Control Northern Cape Liquour Board, Norhern Cape Gambling Board, Northern Cape Economic Development Agency

Related party balances Part E Part Amounts included in Trade receivable (Trade Payable) regarding related parties Key Management - Leave and bonus liabilities (1,392,676) (1,318,122) Department of Economic Development and Tourism - (469,807) Northern Cape Economic Development Agency 54,248 -

Related party transactions

Revenue from Related Parties Grants - Department of Economic Development and Tourism (21,499,000) (20,409,000) Partnership Projects - Department of Economic Development and Tourism (869,807) (890,193) Income - Attendance of Exhibitions - NCEDA (54,248) -

Transactions with Board Members Remuneration 168,447 147,885 Travel & Subsistence 157,390 138,604 Goods and Services 73,430 49,690

Compensation of Key Management Salaries and Employee Benefits ( Refer to note 12 & 13) 6,349,159 5,782,538

31 Annual Report 2017/2018 www.experiencenortherncape.com Northern Cape Tourism Authority Financial Statements for the year ended 31 March 2018 page | 84 Notes to the Financial Statements Figures in Rand Northern Cape Tourism Authority

15. Related parties (continued) FinancialNorthern Statements Cape for Tourism the year ended A uthority31 March 2018 Financial Statements for the year ended 31 March 2018 Remuneration of management

Board members Notes to thethe FinancialFinancial Statements Statements

2018 Figures in Rand

15. Related parties (continued) Sitting Fees Subsistence Total and Travel Remuneration of management Allowance Name C Fortune (Chairperson) Board members 73,647 5,155 78,802 B Bopape (Deputy Chairperson) 20,800 861 21,661 V Barbery 2018 14,000 37,385 51,385 RJ Williams 18,000 19,438 37,438 RM Loko 14,000 20,654 34,654 Sitting Fees Subsistence Total W Burger 28,000 62,258 90,258 and Travel T Cogang - 11,636 11,636 Allowance Name 168,447 157,387 325,834 C Fortune (Chairperson) 73,647 5,155 78,802 B Bopape (Deputy Chairperson) 20,800 861 21,661 2017 V Barbery 14,000 37,385 51,385 RJ Williams 18,000 19,438 37,438 RM Loko Sitting Fees Subsistence Total 14,000 20,654 34,654 W Burger and Tarvel Part E 28,000 62,258 90,258 T Cogang Allowance - 11,636 11,636 Name C. Fortune (Chairperson) 83,485 2,993 86,478 168,447 157,387 325,834 B. Bopape (Deputy Chairperson) 10,400 713 11,113 V. Barbery 2017 8,000 56,445 64,445 RJ Williams 14,000 9,228 23,228 RM Loko 6,000 11,027 17,027 Sitting Fees Subsistence Total W Burger 24,000 58,196 82,196 and Tarvel T Cogang 2,000 - 2,000 Allowance Name 147,885 138,602 286,487 C. Fortune (Chairperson) 83,485 2,993 86,478 B. Bopape (Deputy Chairperson) 10,400 713 11,113 V. Barbery 32 8,000 56,445 64,445 RJ Williams 14,000 9,228 23,228 RM Loko 6,000 11,027 17,027 W Burger 24,000 58,196 82,196 T Cogang 2,000 - 2,000 147,885 138,602 286,487

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Northern Cape Tourism Authority

NorthernFinancial Statements Cape for Tourismthe year ended A 31uthority March 2018 Financial Statements for the year ended 31 March 2018 Notes to the Financial Statements 2018 2017 R R

16. Contingencies

The entity does not have any contingent assets or liabilities on 31 March 2018, that will require disclosure in terms of GRAP 19, Provisions, Contingent Liabilities and Contingent Assets.

17. Other financial assets

At amortised cost Rental deposit - Office Building 43,889 43,889 Terms and conditions - Deposit will be refunded once the lease has expired

Non-current assets Part E Part At amortised cost 43,889 43,889

18. Operating lease asset (accrual)

Non-current liabilities - (117,354) Current liabilities (117,354) (63,765) (117,354) (181,119)

The operating lease was entered into during February 2014, for the lease of the office building of the entity.

The lease period is 60 months with an annual increase of 8%.

The minimum lease payments due under the lease contract are as follows:

Within 1 year: R706 838 (2016/17: R706 838)

Reconciliation of operating lease liability:

Payments made R706 838 (2016/17: R642 580), straightline lease payments recognised R643 074 (2016/17: R643 074) due to straigtline recognition R63 765 (2016/17: (R493) ).In the prior year the statement of position was not split between the current and non current portions

19. Prepayments

Prepayments made on annual licence renewal fees and securing of accomodation for Indaba 2018 amounting to R246,893 (16/17 R66 677).

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Northern Cape Tourism Authority NorthernFinancial Statements Cape for Tourismthe year ended A 31uthority March 2018 Financial Statements for the year ended 31 March 2018 Notes to the Financial Statements 2018 2017 R R

20. Finance lease obligation

Minimum lease payments due - within one year 10,338 1,617 - in second to fifth year inclusive 6,604 - 16,942 1,617 less: future finance charges (1,247) (61) Present value of minimum lease payments 15,695 1,556

Present value of minimum lease payments due - within one year 8,661 1,610 - in second to fifth year inclusive 7,034 - 15,695 1,610 Part E Non-current liabilities 8,661 - Current liabilities 7,034 1,610 15,695 1,610

It is entity policy to lease certain office equipment under finance leases.

The average lease term was 2 years and the average effective borrowing rate was 9 % (2017: 9%).

The entity's obligations under finance leases are secured by the lessor's charge over the leased assets.

21. Taxes and transfer payables (non-exchange)

Earmarked funds: Mobile Information Office - 469,807

The carrying amount reported in the balance sheet for trade and other payables approximate fair value due to the short time period between initiation and settlement thereof. The effect of discounting is not material.

Reconciliation of payable (non-exchange)

Opening Balance 469,807 500,000 Amount received - 500,000 Conditions met : Transfer to non - exchange revenue (469,807) (530,193) - 469,807

The carrying amount of trade and other payables (non-exchange) are denominated in the following currencies:

Rand - 469,807

The earmarked funds received from the Northern Cape Department of Economic Development and Tourism, is for the purchase of a mobile information office, the mobile unit have been purchased during the year.

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Northern CapeCape TourismTourism Authority Authority Financial Statements for the year ended 31 March 2018 Financial Statements for the year ended 31 March 2018 Notes to the Financial Statements 2018 2017 R R

22. Financial instruments disclosure

Categories of financial instruments

2018

Financial assets

At amortised Total cost Other financial assets 43,889 43,889 Trade and other receivables from exchange transactions 173,416 173,416 Cash and cash equivalents 2,881,031 2,881,031

Part E Part 3,098,336 3,098,336

Financial liabilities

At amortised Total cost Trade and other payables from exchange transactions (1,922,053) (1,922,053) Finance lease liability (15,695) (15,695) (1,937,748) (1,937,748)

2017

Financial assets

At amortised Total cost Other financial assets 43,889 43,889 Trade and other receivables from exchange transactions 458,936 458,936 Cash and cash equivalents 1,979,584 1,979,584 2,482,409 2,482,409

Financial liabilities

At amortised Total cost Trade and other payables from exchange transactions (1,247,585) (1,247,585) Finance Lease liability (1,610) (1,610) (1,249,195) (1,249,195)

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Northern Cape TourismTourism Authority Authority Financial Statements for the year ended 31 March 2018 Financial Statements for the year ended 31 March 2018 Notes to the Financial Statements 2018 2017 R R

23. General expenses

Marketing and advertising 9,643,753 9,238,754 Assessment rates & municipal charges 48,199 51,629 Audit and other fees 825,792 741,722 Bank charges 27,032 15,473 Cleaning - 659 Insurance 95,129 61,546 Community development and training 12,986 19,656 IT expenses 38,535 36,654 Postage and courier 6,015 3,946 Printing and stationery 99,908 71,641 Repairs and maintenance 26,710 10,320 Security costs - 6,010 HR and organizational development 113,472 137,385 Subscriptions and membership fees 74,104 27,341 Telephone and fax 227,930 242,090 Travel and accomodation 52,097 79,992 Part E Annual report 70,000 86,261 Board and sub-committe expenses 413,904 262,019 General expenses 22,638 24,683 11,798,204 11,117,781

24. Debt impairment

Contributions to debt impairment provision - 74,189

25. Auditors' remuneration

Audit fees 622,881 510,872 Accounting and other services 202,911 230,850 825,792 741,722

26. Comparative amounts

Certain comparative amounts have been reclassified during the year:

Operating lease liability has been split between current and non-current portion.

Details are as follows:

Statement of financial position Operating Lease Liability - Current 63,765 Operating Lease Liability - Non Current - 117,354

- 181,119

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Northern Cape Tourism Authority

FinancialNorthern Statements Cape for theTourism year ended A31uthority March 2018 Financial Statements for the year ended 31 March 2018 Notes to the Financial Statements 2018 2017 R R

27. Going concern

We draw attention to the fact that at 31 March 2018, the entity had an accumulated surplus of R 1,828,927 (16/17 R 728,126) and that the entity's total assets exceed its liabilities by R 1,828,927 (16/17 R 728,927).

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 Entitiy is wholly dependant on the Northern Cape Department of Economic Development and Tourism for the continued funding of our operations. The Department of Economic Development and Tourism has neither the intention or the need to liquidate or curtail the scale of the entity.

Part E Part 28. Events after the reporting date

No Events occured after year end that affects the Financial Statement or operations of the Entity

29. In-kind donations and assistance

Internal Audit Services 141,920 -

Provincial Treasury provided the Internal Audit Function for the NCTA, an external firm was appointed to provide the service on behalf of Provincial Treasury for the period under review.

37 Annual Report 2017/2018 www.experiencenortherncape.com