Represented Political Parties’ Fund
2020
ELECTORAL COMMISSION
Report regarding the Management and Administration of the Represented Political Parties’ Fund during the financial year 1 April 2019 to 31 March 2020 in terms of Section 8 of the Public Funding of Represented Political Parties Act, 1997 (Act 103 of 1997)
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Represented Political Parties’ Fund Annual Report 2020 1 ELECTORAL COMMISSION
The Honourable T Modise
Speaker of the National Assembly
I have the honour of submitting the Annual Report of the Electoral Commission regarding its management and administration of the Represented Political Parties’ Fund for the year ended 31 March 2020, together with the audited financial statements and the report of the Auditor General for the period under review.
This report is hereby submitted to you for tabling in Parliament in accordance with section 8 of the Public Funding of Represented Political Parties’ Act, 103 of 1997.
Yours faithfully
Chairperson Chief Electoral Officer Glen Mashinini Phatudi Simon Mamabolo Electoral Commission Electoral Commission
16 February 2021 16 February 2021
2 Represented Political Parties’ Fund Annual Report 2020 TABLE OF CONTENTS
ALLOCATIONS TO THE REPRESENTED POLITICAL PARTIES 6 - 8
EXTRACTS OF REPRESENTED POLITICAL PARTIES’ FINANCIAL STATEMENTS 10 - 50
African Christian Democratic Party 10 - 13
African Independent Congress 14 - 16
Al Jama-Ah 17 - 19
African National Congress 20 - 22
African Transformation Movement 23 - 25
Congress of the People 26
Democratic Alliance 27 - 29
Economic Freedom Fighters 30 - 32
Freedom Front Plus 33 - 35
Good 36 - 38
Inkatha Freedom Party 39 - 42
Minority Front 43 - 45
National Freedom Party 46
Pan Africanist Congress of Azania 47
United Democratic Movement 48 - 50
REPORT OF THE AUDIT COMMITTEE 51 - 53
REPORT OF THE AUDITOR-GENERAL 3 54 - 57 FINANCIAL STATEMENTS OF THE REPRESENTED POLITICAL PARTIES’ FUND 58 - 76
Report of the Accounting Officer 59 - 60
Statement of Financial Position 61
Statement of Financial Performance 62
Statement of Changes in Net Assets 63
Statement of Cash Flow 64
Comparison of Expenditure to Budget 65
Accounting Policies 66 - 69
Notes to the Annual Financial Statements 70 - 76
ANNEXURE A 77 -78
Detailed Income Statement 78
Represented Political Parties’ Fund Annual Report 2020 3 4 Represented Political Parties’ Fund Annual Report 2020 3
ALLOCATIONS TO REPRESENTED POLITICAL PARTIES
Represented Political Parties’ Fund Annual Report 2020 5
1 3 1 4 3 7 2 2 4 2 28 94 21 173 830 485 TOTAL 0 0 0 0 0 6 4 1 0 4 0 0 0 0 0 19 30 FREE STATE 0 0 0 0 0 3 4 1 0 4 0 0 0 0 0 22 30 MPUMALANGA 0 0 0 0 0 4 6 2 0 4 0 0 0 0 0 21 33 WEST NORTH 0 0 0 0 0 8 3 1 0 4 0 0 0 0 0 18 30 CAPE NORTHERN 1 1 0 0 8 0 0 8 1 0 0 1 0 13 11 44 80 NATAL KWAZULU KWAZULU 0 0 0 0 3 0 1 6 1 0 0 0 0 20 11 37 73 GAUTENG R158 319 396 R142 487 456 R 15 831 940 0 0 0 2 5 1 0 0 6 0 0 0 1 0 10 44 63 CAPE EASTERN 0 0 0 0 7 1 0 0 4 3 0 0 0 0 0 38 49 LIMPOPO 0 0 0 0 2 1 1 0 7 1 0 1 0 0 24 12 42 CAPE WESTERN
0 2 1 2 2 4 2 1 2 2 44 10 14 84 230 400 NATIONAL NATIONAL ASSEMBLY ALLOCATIONS TO REPRESENTED POLITICAL PARTIES FOR THE YEAR ENDED 31 MARCH 2020 ENDED 31 MARCH YEAR THE FOR REPRESENTED POLITICAL PARTIES TO ALLOCATIONS Total allocation to the Represented Political Parties: Parties: Political the Represented to allocation Total (90%): allocation Proportional (10%): allocation Equitable NUMBER OF MEMBERS – REPRESENTATION TOTAL 1: TABLE REPRESENTED POLITICAL PARTIES MINORITY FRONT FREEDOM PARTY NATIONAL AFRICANIST CONGRESS PAN MOVEMENT UNITED DEMOCRATIC TOTAL ECONOMIC FREEDOM FIGHTERS ECONOMIC FREEDOM FRONT PLUS GOOD FREEDOM PARTY INKATHA NUMBER OF PARTIES AFRICAN CHRISTIAN DEMOCRATIC PARTY AFRICAN CHRISTIAN DEMOCRATIC AFRICAN INDEPENDENT CONGRESS AL JAMA-AH CONGRESS AFRICAN NATIONAL AFRICAN TRANSFORMATION MOVEMENT AFRICAN TRANSFORMATION THE PEOPLE OF CONGRESS ALLIANCE DEMOCRATIC
6 Represented Political Parties’ Fund Annual Report 2020 R 343 343,28 564 254,08 343 343,28 735 925,72 539 856,28 883 199,56 171 671,64 2 238 754,84 1 441 465,08 6 243 760,96 5 622 948,40 1 073 280,44 86 267 584,00 32 706 034,00 19 143 974,92 TOTAL PAID TOTAL R 85 835,82 85 835,82 42 917,91 559 688,71 141 063,52 360 366,27 183 981,43 134 964,07 220 799,89 268 320,11 Jan-20 8 176 508,50 4 785 993,73 1 560 940,24 1 405 737,10 21 566 896,00 R 85 835,82 85 835,82 42 917,91 559 688,71 141 063,52 360 366,27 183 981,43 134 964,07 220 799,89 268 320,11 Oct-19 8 176 508,50 4 785 993,73 1 560 940,24 1 405 737,10 21 566 896,00 R 85 835,82 85 835,82 42 917,91 559 688,71 141 063,52 360 366,27 183 981,43 134 964,07 220 799,89 268 320,11 Jul-19 8 176 508,50 4 785 993,73 1 560 940,24 1 405 737,10 21 566 896,00 R 85 835,82 85 835,82 42 917,91 559 688,71 141 063,52 360 366,27 183 981,43 134 964,07 220 799,89 268 320,11 May-19 8 176 508,50 4 785 993,73 1 560 940,24 1 405 737,10 21 566 896,00 R 343 343,28 564 254,08 343 343,28 735 925,72 539 856,28 883 199,56 171 671,64 TOTAL 2 238 754,84 1 441 465,08 6 243 760,96 5 622 948,40 1 073 280,44 86 267 584,00 32 706 034,00 19 143 974,92 158 319 396,48 - - - 3 R 220 910,79 754 778,52 220 910,79 816 142,62 368 184,64 368 184,64 386 593,88 1 037 053,41 3 006 841,25 3 006 841,25 3 006 841,25 2 638 656,61 15 831 939,65 PROVINCIAL PROVINCIAL LEGISLATURE R 343 343,28 343 343,29 686 686,56 343 343,28 515 014,93 171 671,64 515 014,92 171 671,64 686 686,56 1 201 701,43 3 605 104,35 4 806 805,78 83 260 742,75 NATIONAL NATIONAL 29 699 192,75 16 137 133,67 ASSEMBLY 142 487 456,83 ALLOCATIONS TO REPRESENTED POLITICAL PARTIES FOR THE YEAR ENDED 31 MARCH 2020 ENDED 31 MARCH YEAR THE FOR REPRESENTED POLITICAL PARTIES TO ALLOCATIONS PARTIES REPRESENTED POLITICAL TABLE 2: ALLOCATION TO THE REPRESENTED POLITICAL PARTIES TO 2: ALLOCATION TABLE
AFRICAN CHRISTIAN PARTY DEMOCRATIC AFRICAN INDEPENDENT CONGRESS AL JAMA-AH AFRICAN NATIONAL AFRICAN NATIONAL CONGRESS AFRICAN TRANSFORMATION AFRICAN TRANSFORMATION MOVEMENT CONGRESS OF THE PEOPLE OF CONGRESS DEMOCRATIC ALLIANCE DEMOCRATIC ECONOMIC FREEDOM ECONOMIC FIGHTERS FREEDOM FRONT PLUS GOOD INKATHA FREEDOM PARTY INKATHA MINORITY FRONT NATIONAL FREEDOM PARTY NATIONAL PAN AFRICANIST CONGRESS PAN UNITED DEMOCRATIC UNITED DEMOCRATIC MOVEMENT TOTALS
Represented Political Parties’ Fund Annual Report 2020 7 12,137 317,287 128,754 R 8,110,202 2,001,215 7,792,915 4,028,633 3,185,060 2,531,899 7,694,099 Total Total 19,220,261 111,724,423 158,178,505 158,319,396 (150,385,589) - - - - 95,607 (2,017) (2,017) R 411,390 440,000 128,300 (UDM) 1,073,280 1,073,280 United (1,075,297) Movement Democratic 42,918 42,918 42,918 R 171,672 128,754 Pan (PAC) Africanist Congress R 883,200 883,200 883,200 883,200 Party (NFP) National Freedom - - - - 775 67,250 67,250 90,717 19,818 R 539,081 149,070 212,226 539,856 (MF) Front Front (471,831) Minority 1 8,937 R 201,492 192,555 665,238 548,485 502,774 (IFP) Party Party 1,353,178 5,622,948 1,084,683 1,276,034 5,622,948 Inkatha Freedom (5,430,392) - - - - 52 324 272 96,115 37,161 R 735,926 602,378 735,926 (735,654) GOOD - - 84,464 R 150,989 507,549 214,022 (FF) 2,169,241 2,084,777 6,243,761 1,793,602 1,492,822 6,243,761 Freedom (4,158,984) Front Plus - - 11 362 11 113,021 R (EFF) 3,553,776 2,001,214 3,553,776 3,326,767 4,604,083 1,082,069 4,451,683 19,132,613 19,143,975 Fighters Freedom Economic (15, 578, 837) - - 72,524 R 189,434 285,514 (DA) (413,048) (602,482) 1,579,386 7,390,627 Alliance 23,980,465 32,706,034 32,706,034 Democratic (33,308,516) R 343,343 343,343 343,343 343,343 (COPE) the People Congress of - - 19,984 16,528 44,525 101,260 124,356 101,260 996,669 138,143 R 1,441,465 1,441,465 (ATM) (1,340,205) African Movement Transformation Transformation - - - - - 369 86,704 86,335 R (ANC) 3,151,745 African National 86,267,584 83,029,504 86,267,584 Congress (86,181,249) - 181 4,500 58,911 59,092 41,750 56,450 98,321 R 149,192 564,254 155,130 564,254 (505,343) Al Jama-Ah - - - 45,300 92,006 35,000 50,462 (9,639) (9,639) 343,343 130,214 343,343 R (352,982) (AIC) African Congress Independent - 33,850 12,144 26,887 R 992,456 363,170 242,785 230,372 370,941 Party 1,026,306 2,238,755 2,238,755 African (ACDP) Christian (1,246,299) Democratic EXPENDITURE BY REPRESENTED POLITICAL PARTIES FOR THE YEAR ENDED 31 MARCH 2020 ENDED 31 MARCH YEAR THE FOR REPRESENTED POLITICAL PARTIES EXPENDITURE BY Surplus / (deficit) for the year Unspent money at end of year Plus: Interest received Total Expenditure Total Personnel expenditure Accommodation expenditure Travel expenditure Travel Fixed asset and other expenditure Less: Unused funds repayable Less: Suspended amount i.t.o. the Act amount paid during Total the year Promotion and publications Arrangements of meetings and rallies Administrative expenditure Allocations for the year
8 Represented Political Parties’ Fund Annual Report 2020 3
EXTRACTS OF THE REPRESENTEDPOLITICAL PARTIES’ STATEMENTS PUBLISHED IN THIS REPORT AS FILED WITH THE COMMISSION
Represented Political Parties’ Fund Annual Report 2020 9 AFRICAN CHRISTIAN DEMOCRATIC PARTY (ACDP)
Statement of Financial Position as at 31 March 2020
2020 2019 Notes R R
Assets
Non-Current Assets
Property, plant and equipment 2 10 176 12 536
Current Assets Trade and other receivables 3 17 080 - Cash and cash equivalents 4 1 013 881 - 1 030 961 - Total Assets 1 041 137 12 536
Equity and Liabilities
Capital and reserves Reserves 1 035 900 9 594
Liabilities
Current Liabilities Trade and other payables 5 5 237 2 787 Bank overdraft 4 - 155 5 237 2 942 Total Equity and Liabilities 1 041 137 12 536
Accounting Officer D Kissoonduth Auditors PKF Cape Town Chartered Accountants S.A Audit Opinion Unqualified
10 Represented Political Parties’ Fund Annual Report 2020 AFRICAN CHRISTIAN DEMOCRATIC PARTY (ACDP)
Statement of Cash Flows for the year ended 31 March 2020
2020 2019 Notes R R
Cash flows from operating activities
Cash generated from (used in) operations 11 983 333 (180 962) Interest income 33 850 12 088 Net cash from operating activities 1 017 183 (168 874)
Cash flows from investing activities
Purchase of property, plant and equipment 2 (3 147) (11 406)
Total cash movement for the year 1 014 036 (180 280) Cash at the beginning of year (155) 180 125 Total cash at end of the year 4 1 013 881 (155)
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Represented Political Parties’ Fund Annual Report 2020 11 AFRICAN CHRISTIAN DEMOCRATIC PARTY (ACDP)
Detailed Income Statement for the year ended 31 March 2020
2020 2019 Notes R R
Income
Allocation from fund 6 2 238 755 1 008 227
Other Income Interest received 7 33 850 12 088
Expenses 1 246 299 1 213 050
Other operating expenses Accommodation 12 144 16 970
Arrangements of meetings and rallies 230 372 172 455 Meals and refreshments 73 469 12 957 Rent - conference venues 149 403 139 998 Secretarial services 7 500 19 500
Administration 370 941 393 203 Audit fees 10 - 51 750 Bad debts - 1 074 Bank charges 19 500 24 453 Cleaning 52 - Depreciation 2 952 2 178 Security 13 620 9 209 Licences 20 214 27 232 Rental 127 672 125 369 - Head office 107 643 108 175 - Office equipment 20 029 17 194 Repairs and maintenance 1 942 4 917 Small assets 10 838 - Stationery 13 724 7 972 Telephone and postage 69 608 71 970 Water and electricity, rates and taxes 74 195 67 079 Website 16 624 -
12 Represented Political Parties’ Fund Annual Report 2020 AFRICAN CHRISTIAN DEMOCRATIC PARTY (ACDP)
Detailed Income Statement for the year ended 31 March 2020
2020 2019 Notes R R
Promotions and publications 26 887 139 655 Entertainment 980 730 Promotions 25 907 138 925
Personnel expenditure 363 170 306 311 Salaries 360 400 303 471 Unemployment Insurance fund 2 770 2 840
Travel 242 785 184 456
Expenses 1 246 299 1 213 050
Profit (loss) for the period 1 026 306 (192 735)
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Represented Political Parties’ Fund Annual Report 2020 13 AFRICAN INDEPENDENT CONGRESS (AIC)
Statement of Financial Position as at 31 March 2020
2020 2019 Notes R R
Assets
Non-Current Assets Property, plant & equipment 2 18 135 32 594
Current Assets Cash and cash equivalents 3 208 113
Total Assets 18 343 32 707
Funds and Liabilities
Funds Accumulated surplus 843 10 483
Current Liabilities Trade and Other Payables 17 500 22 224
Total Equity and Liabilities 18 343 32 707
Accounting Officer M S Arnolds Auditors Nicholson & Company Audit Opinion Unqualified
14 Represented Political Parties’ Fund Annual Report 2020 AFRICAN INDEPENDENT CONGRESS (AIC)
Statement of Cash Flows for the year ended 31 March 2020
2020 2019 Notes R R
Cash flows from operating activities Cash receipts from parliament 343 342 1 008 227 Cash paid to suppliers and employees (343 247) (1 008 261)
Cash generated from/(utilized in) operations 7 95 (34)
Total cash movement for the period 95 (34) Cash and cash equivalents at beginning of year 113 147 Total cash at the end of the period 3 208 113
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Represented Political Parties’ Fund Annual Report 2020 15 AFRICAN INDEPENDENT CONGRESS (AIC)
Detailed Statement of Financial Performance for the year ended 31 March 2020
2020 2019 Notes R R
Revenue Grants received from I.E.C. 4 343 342 1 008 227
Operating expenses (352 982) (1 025 244) Personnel Expenses Staff salaries 45 300 80 400
Travel Travel expenses 92 006 -
Arrangement of Meetings 50 462 22 925 Motor vehicle hire 17 000 - Political meetings 33 462 22 925
Administrative 130 214 891 919 Accounting fees 10 000 - Auditor’s remuneration 6 7 500 21 250 Bank charges 3 319 7 184 Depreciation 14 459 14 459 Election registrations - 523 226 Electricity 3 550 - Furniture removal 11 000 - Interest on overdraft 4 - Legal fees - 250 000 Office expenses - - Office rentals 40 000 40 000 Printing & stationery 10 583 30 000 Repairs & maintenance 8 150 - Security 12 869 - Telephone, faxes and Internet 8 780 5 800
Promotions and Publications 35 000 30 000 Posters 20 000 - T-shirts 15 000 30 000
(Deficit) for the period (9 640) (17 017)
16 Represented Political Parties’ Fund Annual Report 2020 AL JAMA-AH
Statement of Financial Position as at 31 March 2020
2020 Notes R
Current assets Trade and other receivables 2 32 877 Cash and cash equivalents 3 49 616 Total current assets 82 493
Total assets 82 493
Funds and liabilities
Funds Accumulated surplus 59 092
Liabilities Current liabilities Accrual 4 13 401 Trade and other payables 5 10 000 Total current liabilities 23 401
Total liabilities 23 401
Total funds and liabilities 82 493
Accounting Officer M G E Hendricks 3 Auditors Nexia SAB&T Audit Opinion Unqualified
Represented Political Parties’ Fund Annual Report 2020 17 AL JAMA-AH
Statement of Cash Flows for the year ended 31 March 2020
2020 Notes R
Net cash flows from operations 10 49 616 Net increase in cash and cash equivalents 49 616
Cash and cash equivalent at end of the year 3 49 616
18 Represented Political Parties’ Fund Annual Report 2020 AL JAMA-AH
Detailed Income Statement for the year ended 31 March 2020
2020 Notes R
Income 6 Government grant 564 254 Interest received 4 Other revenue 177 Total income 564 435
Administrative expenses 7 Administration costs (85 375) Bank charges (3 490) Telephone and fax (9 456) Total administrative expenses (98 321)
Other expenses 8 Accommodation (4 500) Arrangement of meetings and rallies (155 130) Personnel expenditure (149 192) Promotion and publications (56 450) Travelling expenses (41 750) Total other expenses (407 022)
Surplus from operating activities 59 092
Surplus for the year 59 092 3
Represented Political Parties’ Fund Annual Report 2020 19 AFRICAN NATIONAL CONGRESS (ANC)
Statement of Financial Position as at 31 March 2020
2020 2019 Notes R R
ASSETS
Current assets 89 359 39 655 Cash and cash equivalents 3 89 359 39 655
TOTAL ASSETS 89 359 39 655
EQUITY AND LIABILITIES
Equity Accumulated loss (160 641) (247 345)
Current liabilities Trade and other payables 4 250 000 287 000
TOTAL EQUITY AND LIABILITIES 89 359 39 655
Accounting Officer S P Mashatile Auditors Ramuedzisi Incorporated Audit Opinion Unqualified
20 Represented Political Parties’ Fund Annual Report 2020 AFRICAN NATIONAL CONGRESS (ANC)
Statement of Cash Flows for the year ended 31 March 2020
2020 2019 Notes R R
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from the Independent Electoral Commission 86 267 584 88 328 268 Cash paid to suppliers and employees (86 218 249) (88 304 124) Cash generated from operations 5 49 335 24 144 Finance income 2 369 344 Net cash generated from operating activities 49 704 24 488
NET INCREASE IN CASH AND CASH EQUIVALENTS 49 704 24 488
Cash and cash equivalents at beginning of the year 39 655 15 167 CASH AND CASH EQUIVALENTS AT END OF THE YEAR 3 89 359 39 655
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Represented Political Parties’ Fund Annual Report 2020 21 AFRICAN NATIONAL CONGRESS (ANC)
Supplementary Information for the year ended 31 March 2020
2020 2019 R R
INCOME 86 267 953 88 328 612 Grant received 86 267 584 88 328 268 Interest Income 369 344
EXPENDITURE Personnel expenditure Salaries 83 029 504 83 002 048
Arrangements of meetings and rallies - 140 000 Hiring - venues - 140 000
Accommodation - 45 000
Administrative – general 2 950 688 3 800 827 Cleaning and sanitation 262 324 388 918 Communication expenses - telephone fax modem 724 284 735 834 Rental - office equipment 358 550 510 244 Rental - parking 331 200 530 888 Maintenance and repairs - buildings 83 673 124 309 Photocopy consumables 283 652 368 822 Internet maintenance 798 535 986 855 Server expenses 108 470 154 957
Administrative – other 201 057 1 332 249 Audit costs – Independent Electoral Commission 199 711 286 250 Bank charges 1 346 1 204 Electoral fees list process - 345 000 Research - 107 295 Education and training - 592 500
Surplus for the year 86 704 8 488
22 Represented Political Parties’ Fund Annual Report 2020 AFRICAN TRANSFORMATION MOVEMENT (ATM)
Statement of Financial Position as at 31 March 2020
2020 Notes R
Assets
Non-Current Assets 59 131 Property, Plant and Equipment 2 59 131
Current Assets 26 311 Cash and cash equivalents 3 1 311 Trade and Other Receivables 4 25 000
Total Assets 85 442
Equity and Liabilities
Equity 85 442 Accumulated Funds 5 85 442
Total Equity and Liabilities 85 442
Accounting Officer M M Qotoyi Auditors Anil Ramnath and Company, Chartered Accountants (SA) Audit Opinion Unqualified 3
Represented Political Parties’ Fund Annual Report 2020 23 AFRICAN TRANSFORMATION MOVEMENT (ATM)
Statement of Cash Flow for the period ended 31 March 2020
2020 Notes R
Cash Flows from Operating Activities Cash receipts from funding 7 1 441 465 Cash receipts - Cash deposit to account 500
Adjusted for cash payments: Cash withdrawals (10 000) Transfer to other party accounts (Account opening fee) (2 000) Cash payments to employees 9 (996 669) 10,11,12 Cash payments to suppliers 13,14 &15 (343 536)
Net increase/(decrease) in working capital changes 89 761 Working capital changes (25 000) Decrease/(increase) in inventories - Decrease/(increase) in debtors/receivables 4 (25 000) Increase/(decrease) in creditors/payables -
Net cash flow available from operating activities 64 761
Cash Flows from Investing Activities (63 450) Purchase of office furniture (63 450)
Cash Flows from Financing Activities - Cash and cash equivalent at beginning of the year -
Cash and cash equivalent at end of the year 3 1 311
24 Represented Political Parties’ Fund Annual Report 2020 AFRICAN TRANSFORMATION MOVEMENT (ATM)
Detailed Statement of Comprehensive Income for the period ended 31 March 2020
2020 Notes R
Income 7 1 441 465 Funds Received 1 441 465
Personnel Expenditure 9 996 669 Salaries 996 669
Administration Expenditure 10 132 005 Bank Fees 28 004 Courier and Postage 199 Depreciation 4 319 Rental Expense 91 291 Security Fees 5 520 Stationary and Printing 1 060 Telephone and Fax 1 612
Operating Expenditure 11 6 138 Cleaning Consumables 5 538 Repairs and Maintenance -Trellidor 600
Accommodation 12 19 984 Arrangement of Meetings and Rallies 13 44 525 Promotions and Publications 14 16 528 Travel Expenses 3 15 124 356
Surplus for the period 101 261
Represented Political Parties’ Fund Annual Report 2020 25 CONGRESS OF THE PEOPLE (COPE)
Audited Financial Statements for the year ended 31 March 2020 Not submitted at the time of printing.
26 Represented Political Parties’ Fund Annual Report 2020 DEMOCRATIC ALLIANCE (DA)
Statement of Financial Position as at 31 March 2020
2020 2019 Notes R R
Assets
Non-Current Assets Property, plant and equipment 2 778 2 110
Current Assets Trade and other receivables 3 64 191 54 629 Cash and cash equivalents 4 141 692 1 878 540 205 883 1 933 169 Total Assets 206 661 1 935 279
Surplus and Liabilities Retained surplus Retained (deficit)/surplus (164 743) 248 305
Liabilities
Current Liabilities Accounts payable 5 371 404 1 686 974 Total Surplus and Liabilities 206 661 1 935 279
Accounting Officer O H Maree Auditors TGS South Africa Incorporated 3 Audit Opinion Unqualified
Represented Political Parties’ Fund Annual Report 2020 27 DEMOCRATIC ALLIANCE (DA)
Statement of Cash Flows for the year ended 31 March 2020
2020 2019 Notes R R
Cash flows from operating activities
Cash (used in)/generated from activities 10 (2 078 820) (2 301 345) Interest income 189 434 384 796 Net cash from/(to) operating activities (1 889 386) (1 916 549)
Total cash movement for the year (1 889 386) (1 916 549) Cash at the beginning of the year 1 878 540 3 795 089 Total cash at end of the year 4 (10 846) 1 878 540
28 Represented Political Parties’ Fund Annual Report 2020 DEMOCRATIC ALLIANCE (DA)
Statement of Comprehensive Income for the year ended 31 March 2020
2020 2019 Notes R R
Income Allowance received from Independent Electoral Commission 32 706 034 32 207 609 Interest received 7 189 434 384 796 32 895 468 32 592 405 Expenditure Arrangements of meetings and rallies Meeting costs 851 491 397 236 Rent and electricity 727 895 880 416 1 579 386 1 277 652 Promotions and publications Newspapers, books and publications 72 524 89 533
Personnel Salaries 23 980 465 26 245 718
Travel Travel 285 514 1 205 171
Administration Auditor’s remuneration 9 47 150 111 464 Bank charges 9 009 7 862 Communication expenditure: telephone and fax 210 788 1 183 849 Depreciation 1 333 1 333 Equipment rental 3 578 998 555 624 Expensed assets 3 305 23 777 Insurance 604 432 572 453 Maintenance and repairs: building 540 101 582 200 Maintenance and repairs: computers 397 177 329 577 Maintenance and repairs: furniture and equipment - 22 678 Printing and stationery 165 532 223 006 Professional services and translations 788 857 868 546 Recruitment fee - 146 467 Refreshments 112 915 29 271 Security 93 080 86 766 Staff training 242 682 287 024 Website hosting and software development 3 595 268 2 169 542 7 390 627 7 201 439 Total expenditure 33 308 516 36 019 513 Deficit for the year (413 048) (3 427 108)
Represented Political Parties’ Fund Annual Report 2020 29 ECONOMIC FREEDOM FIGHTERS (EFF)
Statement of Financial Position as at 31 March 2020
2020 2019 Notes R R
Assets
Non-Current Assets Property, plant and equipment 2 25 596 372 22 592 974
Current Assets Trade and other receivables 3 - 17 875 Cash and cash equivalents 4 10 052 2 858 10 052 20 733 Total Assets 25 606 424 22 613 707
Equity and Liabilities
Equity Accumulated surplus 13 486 750 9 932 974
Liabilities
Non-Current Liabilities Other financial liabilities 10 498 542 10 959 909 Finance lease liabilities 5 141 312 320 720 10 639 854 11 280 629 Current Liabilities Other financial liabilities 673 878 673 878 Finance lease liabilities 5 805 942 726 226 1 479 820 1 400 104 Total Liabilities 12 119 674 12 680 733 Total Equity and Liabilities 25 606 424 22 613 707
Accounting Officer O M C Maotwe Auditors Certified Master Auditors (South Africa) Inc. Audit Opinion Unqualified
30 Represented Political Parties’ Fund Annual Report 2020 ECONOMIC FREEDOM FIGHTERS (EFF)
Statement of Cash Flows for the year ended 31 March 2020
2020 2019 Notes R R
Cash flows from operating activities
Cash receipts from customers 19 143 975 12 049 326 Cash paid to suppliers and employees (12 632 093) (5 899 827)
Cash generated from operations 8 6 511 882 6 149 499 Interest income - 6 513 Finance costs (2 001 214) (2 337 435) Net cash from operating activities 4 510 668 3 818 577
Cash flows from investing activities
Purchase of property, plant and equipment 2 (3 942 416) (561 323)
Cash flows from financing activities
Repayment of other financial liabilities (461 367) 33 848 Finance lease payments (99 692) (3 289 863) Net cash from financing activities (561 059) (3 256 015)
Total cash movement for the year 7 193 1 239 Cash at the beginning of the year 2 858 1 620 Total cash at end of the year 4 10 051 2 859 3
Represented Political Parties’ Fund Annual Report 2020 31 ECONOMIC FREEDOM FIGHTERS (EFF)
Detailed Income Statement for the year ended 31 March 2020
2020 2019 Notes R R
Revenue Government grants 19 132 613 12 049 326
Other income Interest received 7 - 6 513
Operating expenses Administration 11 4 451 683 2 576 164 Accommodation 10 3 326 767 - Promotions and publications 12 1 082 069 947 044 Rallies and events 13 4 604 083 2 952 146 Travel - local 113 021 334 818 13 577 623 6 810 172 Operating surplus 5 554 990 5 245 667 Finance costs (2 001 214) (2 337 435) Surplus for the year 3 553 776 2 908 232
32 Represented Political Parties’ Fund Annual Report 2020 FREEDOM FRONT PLUS (VF Plus)
Statement of Financial Position as at 31 March 2020
2020 2019 Notes R R
ASSETS
NON CURRENT ASSETS Equipment 3 1 1
CURRENT ASSETS 2 200 310 40 049 Cash and Cash Equivalents 4 2 198 270 40 049 Accounts Receivable 2 040 - TOTAL ASSETS 2 200 311 40 050
RESERVES AND LIABILITIES
RESERVES Unutilized Surplus 5 2 173 311 4 070
CURRENT LIABILITIES Accounts Payable 27 000 35 980
TOTAL RESERVES & LIABILITIES 2 200 311 40 050
Accounting Officer A Du Plooy Auditors Brink & Brink Inc. Audit Opinion Unqualified 3
Represented Political Parties’ Fund Annual Report 2020 33 FREEDOM FRONT PLUS (VF Plus)
Cash Flow Statement for the year ended 31 March 2020
2020 2019 Notes R R
CASH FLOW FROM OPERATING ACTIVITIES 2 158 221 (246 420) Cash Received from Allowances 6 243 761 2 178 574 Cash Paid for Operating Expenses (4 170 004) (2 440 766)
Cash Generated from Operations 2 073 757 (262 192) Interest Received 84 464 15 772
NET INCREASE IN CASH & CASH EQUIVALENTS 2 158 221 (246 420) Opening Balance 40 049 286 469 Closing Balance 2 198 270 40 049
RECONCILIATION OF NET (DEFICIT) / SURPLUS WITH CASH GENERATED FROM OPERATIONS
Net Surplus / (Deficit) for the Year 2 169 241 (305 911) Adjustments for: Investments Income (Interest Received) (84 464) (15 772)
Operating Surplus / (Deficit) before Working Capital Changes 2 084 777 (321 683)
Changes in Working Capital (11 020) 59 491 Increase / (Decrease) in Accounts Receivable (2 040) 23 511 (Decrease) / Increase in Accounts Payable (8 980) 35 980
Net Cash Generated from Operations 2 073 757 (262 192)
34 Represented Political Parties’ Fund Annual Report 2020 FREEDOM FRONT PLUS (VF Plus)
Statement of Comprehensive Income and Retained Earnings for the year ended 31 March 2020
2020 2019 Notes R R
GOVERNMENT APPROPRIATION 6 243 761 2 178 574
LESS: OPERATION EXPENSES (4 136 394) (2 500 257)
Administration Fees 1 492 822 604 836
Accounting and Audit Fees: Previous Year - 29 775 Accounting and Audit Fees: Current Year 42 002 35 980 Administration Fees Paid to Branches 754 420 274 123 Professional Services 161 201 49 724 Bank Charges 24 810 12 021 Computer Expenses 121 923 42 806 Insurances 21 944 14 553 Maintenance and Cleaning 16 477 1 581 Property: Rent, Levies and Municipal Costs 62 427 76 451 Stationery, Postage and Couriers 70 931 12 692 Subscriptions 12 381 3 776 Telephone, Fax and Internet Expenses 61 048 51 354 Writing Off Equipment 143 258 -
Arrangements of Meetings and Rallies 507 549 536 937 Personnel Expenditure 1 793 602 597 273 3 Promotions, Websites and Bulk Sms's 214 022 120 744 Travelling Expenses 150 989 640 467
NET SURPLUS/ (DEFICIT) FOR THE YEAR 2 048 777 (321 683) Plus: Sundry Income 7 84 464 15 772 NET (DEFICIT) / SURPLUS FOR THE YEAR 2 169 241 (305 911)
Represented Political Parties’ Fund Annual Report 2020 35 GOOD
Statement of Financial Position as at 31 March 2020
2020 Notes R
Assets
Current Assets Cash and cash equivalents 2 44 424 Total Assets 44 424
Equity and Liabilities Member's interest and reserves Retained income 324
Liabilities
Current Liabilities Trade and other payables 3 44 100 Total Equity and Liabilities 44 424
Accounting Officer B Herron Auditors VVS Chartered Accountants Audit Opinion Unqualified
36 Represented Political Parties’ Fund Annual Report 2020 GOOD
Statement of Cash Flows for the year ended 31 March 2020
2020 Notes R
Cash flows from operating activities
Cash receipts from grants 735 926 Cash paid to suppliers and employees (691 554) Cash generated from operations 8 44 372 Interest income 52 Net cash from operating activities 44 424
Total cash movement for the year 44 424 Total cash at end of the year 2 44 424
3
Represented Political Parties’ Fund Annual Report 2020 37 GOOD
Detailed Income Statement for the year ended 31 March 2020
2020 Notes R
Revenue Represented Political Party Fund Allowance 735 926
Other income Interest received 6 52
Operating expenses Administration fees 96 115 Personnel expenditure 37 161 Promotions and publications 602 378 735 654 Profit for the year 324
38 Represented Political Parties’ Fund Annual Report 2020 INKATHA FREEDOM PARTY (IFP)
Statement of Financial Position as at 31 March 2020
2020 2019 Notes R R
Assets
Non-Current Assets Property, plant and equipment 2 205 651 83
Current Assets Cash and cash equivalents 3 - 3 942 Total Assets 205 651 4 025
Equity and Liabilities
Equity Accumulated surplus 205 517 4 025
Liabilities
Current Liabilities Bank overdraft 3 134 - Total Equity and Liabilities 205 651 4 025
Accounting Officer N Singh Auditors R I Kennedy & Associates Audit Opinion Unqualified 3
Represented Political Parties’ Fund Annual Report 2020 39 INKATHA FREEDOM PARTY (IFP)
Statement of Cash Flows for the year ended 31 March 2020
2020 2019 Notes R R
Cash flows from operating activities
Cash generated from/(used in) operations 6 196 989 (14 444) Interest income 8 937 17 360 Finance costs (1) - Net cash from operating activities 205 925 2 916
Cash flows from investing activities
Purchase of property, plant and equipment 2 (210 002) -
Total cash movement for the year (4 077) 2 916 Cash at the beginning of the year 3 943 1 026 Total cash at end of the year 3 (134) 3 942
40 Represented Political Parties’ Fund Annual Report 2020 INKATHA FREEDOM PARTY (IFP)
Detailed Income Statement for the year ended 31 March 2020
2020 2019 Notes R R
Revenue Allowance income 4 5 622 948 4 191 450
Other income Interest received 8 937 17 360
Operating expenses Personnel expenditure Employee costs 1 084 683 2 208 282
Travel expenditure Air tickets 234 887 148 014 Motor vehicle expenses 75 687 9 219 Motor vehicle hire 932 956 165 942 Transport 109 100 15 000 Tolls 548 159 1 353 178 338 334 Accommodation Hotel expenditure 665 238 569 678
Arrangement of meetings Catering 228 174 75 551 Meeting expenses 274 600 222 443 3 502 774 297 994
Represented Political Parties’ Fund Annual Report 2020 41 INKATHA FREEDOM PARTY (IFP)
Detailed Income Statement for the year ended 31 March 2020 (continued)
2020 2019 Notes R R
Administration expenditure Auditors' remuneration 863 - Bank charges 1 411 8 403 Cleaning 4 420 - Consulting fees 1 150 - Depreciation 4 434 - Fund allocations 3 835 - Licenses 6 148 - Maintenance and repairs 75 773 57 027 Printing and stationery 377 587 188 030 Rent paid 428 567 314 549 Rental: office equipment 20 626 31 297 Small assets 5 290 - Security 11 178 - Telephone expenses 279 733 142 748 Utilities 55 019 43 055 1 276 034 785 109 Promotions and publications Promotional items 548 485 6 497
Total expenditure 5 430 392 4 205 894 Operating profit 201 493 2 916 Finance costs (1) - Surplus for the year 201 492 2 916
42 Represented Political Parties’ Fund Annual Report 2020 MINORITY FRONT (MF)
Statement of Financial Position as at 31 March 2020
2020 2019 Notes R R
Assets
Non-Current Asset Property, plant and equipment 2 84 84
Current Asset Cash and cash equivalents 3 95 525 25 775 Total Assets 95 609 25 859
Equity and Liabilities
Equity Accumulated surplus 68 109 859
Liabilities
Current Liability Trade and other payables 4 27 500 25 000 Total Equity and Liabilities 95 609 25 859
Accounting Officer S Thakur-Rajbansi Auditors Y.D. Maharaj & Co Audit Opinion Unqualified 3
Represented Political Parties’ Fund Annual Report 2020 43 MINORITY FRONT (MF)
Statement of Cash Flows for the year ended 31 March 2020
2020 2019 Notes R R
Cash flows from operating activities
Cash generated from (used in) operations 10 69 750 (388)
Total cash movement for the year 69 750 (388) Cash at the beginning of the year 25 775 26 163 Total cash at end of the year 3 95 525 25 775
44 Represented Political Parties’ Fund Annual Report 2020 MINORITY FRONT (MF)
Statement of Comprehensive Income for the year ended 31 March 2020
2020 2019 Notes R R
Income Allocation from Fund 539 081 622 424
Expenses Administration 5 (212 226) (124 394) Arrangement of meetings and rallies 6 (19 818) (145 529) Personnel expenditure 7 (149 070) - Promotions and publications 8 (90 717) (353 221) (471 831) (623 144) Surplus / (Deficit) for the year 67 250 (720) Other comprehensive income - - Total comprehensive surplus / (deficit) for the year 67 250 (720)
3
Represented Political Parties’ Fund Annual Report 2020 45 NATIONAL FREEDOM PARTY (NFP)
Audited Financial Statements for the year ended 31 March 2020 Not submitted at the time of printing.
46 Represented Political Parties’ Fund Annual Report 2020 PAN AFRICANIST CONGRESS OF AZANIA (PAC)
Audited Financial Statements for the year ended 31 March 2020 Not submitted at the time of printing.
3
Represented Political Parties’ Fund Annual Report 2020 47 UNITED DEMOCRATIC MOVEMENT (UDM)
Statement of Financial Position as at 31 March 2020
2020 2019 Notes R R
Reserves and Liabilities Reserves Deficit (2 159) (142)
Current Liabilities Bank overdraft 2 2 159 142
Total Reserves and Liabilities - -
Accounting Officer B H Holomisa Auditors Erasmus Steyn Inc. Audit Opinion Unqualified
48 Represented Political Parties’ Fund Annual Report 2020 UNITED DEMOCRATIC MOVEMENT (UDM)
Statement of Cash Flow for the period ended 31 March 2020
2020 2019 Notes R R
Cash flows (used in) / from operating activities (Deficit) / surplus for the year (2 017) 324 274 Adjustments for: Finance costs 232 045 217 295 Net cash flows from operations 230 028 541 569 Finance costs (232 045) (217 295) Net cash flows (used in) / from operating activities (2 017) 324 274
Net (decrease) / increase in cash and cash equivalents (2 017) 324 274 Cash and cash equivalents at beginning of the year (142) (324 416) Cash and cash equivalents at end of the year 2 (2 159) (142)
3
Represented Political Parties’ Fund Annual Report 2020 49 UNITED DEMOCRATIC MOVEMENT (UDM)
Detailed Income Statement for the period ended 31 March 2020
2020 2019 Notes R R
Income Allocation from fund 1 073 280 1 653 292
Expenditure 1 075 297 1 329 018
Personnel expenditure Salaries: Employees 95 607 -
Travel expenditure Car Rental 128 300 59 484
Arrangement of meetings and rallies - 772 690 Hiring: Conference venues - 742 890 Hiring: Buses and taxis - 29 800
Administrative expenditure 411 390 415 334 Communication expenditure: Telephone, fax and modem 13 797 89 291 Entertainment - 41 250 Legal cost 37 646 44 620 Auditors’ remuneration 21 850 20 125 Bank charges 3 052 2 753 Interest paid 232 045 217 295 Candidate registration 3 000 - Courier 100 000 -
Promotions and publications 440 000 81 510 Printing and stationary 120 000 - Promotions: T-Shirts, caps, flags 320 000 81 510
(Deficit) / surplus for the year (2 017) 324 274
50 Represented Political Parties’ Fund Annual Report 2020 3
REPORT OF THE AUDIT COMMITTEE
Represented Political Parties’ Fund Annual Report 2020 51 Report of the Audit Committee for the Represented Political Parties’ Fund established in terms of act 103 of 1997
The Audit Committee is pleased to present its report for the financial year ended 31 March 2020 relating to its oversight of the Represented Political Parties’ Fund.
1. Background
The Public Funding of Represented Political Parties Act (Act 103 of 1997) provides for the management of the Represented Political Parties’ Fund (the Fund) by the Electoral Commission and the administration of the Fund forms an integral part of the Electoral Commission’s systems, policies, procedures and internal controls.
2. Audit Committee responsibility
The Audit Committee hereby reports that it has been established in terms of section 77 of the PFMA as amended and has complied with its responsibilities arising from Treasury Regulation 3.1 and 3.2. The Audit Committee also confirms that it has adopted the approved formal terms of reference detailed in its charter, has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein.
3. Audit Committee Members and Attendance
During the current financial year the Audit Committee of the Electoral Commission held the following meetings where, when relevant, matters relating to the Fund were also discussed:
Table 1: Audit Committee members Name of member Date Total Qualifications Attended Apologies Retired (all external) appointed attended Ms. J Meissner (Chairperson) CA(SA) May 2016 9 n/a 9 Adv. CH Wessels LLM Aug 2016 2 1 2 31-Jul-19 Mr. CD Boltman MBA Jun 2017 9 n/a 9 Dr. MEC Moleki PHD Mar 2018 9 n/a 9 Ms. SP.Mzizi CA(SA) Aug 2018 7 2 7 Adv. Thato Mohapi LLM Feb 2020 1 n/a 1
Table 2: Audit Committee meetings
Name of member 25-Jul-19 27-Jan-20 04-Apr-19 13-Feb-20 25-Feb-20 05-Sep-19 21-Nov-19 22-Aug-19 29-May-19
Ms. J Meissner (Chairperson from) √ √ √ √ √ √ √ √ √ Adv. CH Wessels √ × √ Retired Mr. CD Boltman √ √ √ √ √ √ √ √ √ Dr. MEC Moleki √ √ √ √ √ √ √ √ √ Ms. SP.Mzizi √ × × √ √ √ √ √ √ Adv. Thato Mohapi √
Officials of the Auditor-General of South Africa, the Accounting Officer, the interim Chief Financial Officer, the Chief Audit Executive and when required, representation from the co-sourced internal audit firms have attended general meetings of the Audit Committee.
Reports of the Audit Committee are tabled to the Commission as well as the Accounting Officer.
52 Represented Political Parties’ Fund Annual Report 2020 4. Effectiveness of Internal Control
During the year under review, the Audit Committee found reports from the Accounting Officer to be adequate. These reports appraised the members of the status of in-year management of the Fund and updated them on risks relating to the administration of the Fund, as well as related court matters as and where applicable.
In line with the principle of combined assurance, the Audit Committee has approved the three year rolling Internal Audit strategic plan which includes independent assessment of readiness for the implementation of the new Party Funding Act 6 of 2018 on a proactive basis.
5. Evaluation of audited annual financial statements
The Audit Committee has: - reviewed and discussed with management the Management Report from the Auditor-General of South Africa; - reviewed the appropriateness of the accounting policies and practices; - reviewed and discussed the adjustments to the financial statements arising from the audit; - noted the schedule of audit differences arising from the audit; and - reviewed and discussed with management the audited annual financial statements and recommended its approval by the Accounting Officer and the Executive Authority.
The Audit Committee concurs with and accepts the audit report of the Auditor-General.
The Audit Committee has advised the Accounting Officer to follow through on seeking clarity with the interpretation of GRAP20 related party disclosure. However the Audit Committee is pleased that the IEC has already finalised its administrative framework for the new era for funding of the Represented Political Party Funding that will be ushered in soon.
Ms Janice Meissner 3 Chairperson of the Audit Committee 8 February 2021
Represented Political Parties’ Fund Annual Report 2020 53 REPORT OF THE AUDITOR GENERAL
54 Represented Political Parties’ Fund Annual Report 2020 Report of the auditor-general to Parliament on Represented Political Parties’ Fund
Report on the audit of the financial statements
Opinion
1. I have audited the financial statements of the Represented Political Parties’ Fund (RPPF) set out on pages 59 to 76, which comprise the statement of financial position as at 31 March 2020, statement of financial performance, statement of changes in net assets, statement of cash flow and comparison of expenditure to budget 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 Represented Political Parties’ Fund (RPPF) as at 31 March 2020, 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 Funding of Represented Political Parties Act, 1997 (Act No. 103 of 1997)(PFRPP Act).
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 Fund in accordance with sections 290 and 291 of the Code of ethics for professional accountants and parts 1 and 3 of the International Code of Ethics for Professional Accountants (including International Independence Standards) of the International Ethics Standards Board for Accountants (IESBA code) as well as other ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA codes.
5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.
Other matter
6. I draw attention to the matter below. My opinion is not modified in respect of this matter.
Unaudited supplementary schedules 3 7. The supplementary information set out on page 77 to 78 does not form part of the financial statements and is presented as additional information. I have not audited the annexure and, accordingly, I do not express an opinion on it.
Responsibilities of the accounting officer for the financial statements
8. The accounting officer is responsible for the preparation and fair presentation of the financial statements in accordance with the Standards of GRAP and the requirements of the PFRPP Act and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
9. In preparing the financial statements, the accounting officer is responsible for assessing the Fund’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the appropriate governance structure either intends to liquidate the Fund or to cease operations, or has no realistic alternative but to do so.
Auditor-general’s responsibilities for the audit of the financial statements
10. 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.
Represented Political Parties’ Fund Annual Report 2020 55 Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
11. A further description of my responsibilities for the audit of the financial statements is included in the annexure to this auditor’s report.
Report on the audit of the annual performance report
12. The Fund is not required to prepare a report on its performance against predetermined objectives, as it does not fall within the ambit of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) and such reporting is also not required in terms of the entity’s specific legislation.
Report on the audit of compliance with legislation
Introduction and scope
13. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to report material findings on the Fund’s compliance with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance.
14. I did not identify any material findings on compliance with specific matters in key legislation set out in the general notice issued in terms of the PAA.
Other information
15. The accounting officer 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 and the auditor’s report that have been specifically reported in this auditor’s report.
16. My opinion on the financial statements and compliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion on it.
17. 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 or my knowledge obtained in the audit, or otherwise appears to be materially misstated.
18. If based on the work I have performed, I conclude that there is a material misstatement in this other information, I am required to report that fact. I have nothing to report in this regard.
Internal control deficiencies
19. I considered internal control relevant to my audit of the financial statements 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.
Pretoria
8 February 2021
56 Represented Political Parties’ Fund Annual Report 2020 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 on the Fund’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 Fund’s internal control
• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the accounting officer.
• conclude on the appropriateness of the accounting officer’s use of the going concern basis of accounting in the preparation of the financial statements. I also conclude, based on the audit evidence obtained, whether a material uncertainty exists relating to events or conditions that may cast significant doubt on the ability of the Represented Political Parties’ Fund 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 my 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 a Fund to cease operating as a going concern
• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, 3 and determine 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 officer 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 officer 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, the actions taken to eliminate threats or the safeguards applied.
Represented Political Parties’ Fund Annual Report 2020 57 FINANCIAL STATEMENTS OF THE REPRESENTED POLITICAL PARTIES’ FUND
58 Represented Political Parties’ Fund Annual Report 2020 Report of the Accounting Officer for the year ended 31 March 2020
The Represented Political Parties’ Fund (the Fund) is an entity established in terms of the Public Funding of Represented Political Parties Act 103 of 1997 (the Act) with a view to: a) Making provision for the funding of political parties participating in Parliament and Provincial Legislatures; b) Providing for the management of the Fund and for the accountability regarding the Fund by the Electoral Commission; c) Regulating the allocations of moneys from the Fund and the purposes for which allocated moneys may be used by political parties; d) Regulating the repayment to the Electoral Commission of the unspent balances of moneys by political parties under certain circumstances; e) Providing for incidental matters.
The Act determined that the financial year of the Fund will run from 1 April of every year until 31 March in the following year.
The Chief Electoral Officer of the Electoral Commission, subject to the direction of the Commission, is responsible for the management and administration of the Fund and is its Accounting Officer and Chief Executive Officer.
For each financial year the Commission must have records kept of moneys received by/or accruing to the Fund, allocations made/and payments therefrom and of expenditure arising from the allocation of moneys and a current record of the capital and liabilities of the Fund.
Allocations to parties are made in accordance with the prescribed formula. Particulars of allocations made to represented political parties in respect of the financial year under review are included in this report.
At the end of each financial year every party must prepare a statement showing the amount received and the purposes for which it was spent and have the statement and its books of records of accounts audited. The auditor must express an opinion as to whether the allocated moneys were spent for purposes not authorised by the Act.
The auditor’s report and the audited statements must be submitted to the Commission by 30 June of each financial year. Extracts from the financial statements of represented political parties, as they were filed with the Commission, are published in this report. 3 A number of purposes for which such moneys may not be used by parties, is set out in the Act. The manner in which parties have to deal with and account for moneys allocated to them, is set out in the Act. `
Internal controls of the Fund operated effectively during the year.
The Accounting Officer of the Electoral Commission is responsible for the preparation and fair presentation of the annual financial statements of Fund, comprising of: a) Statement of Financial Position; b) Statement of Financial Performance; c) Statement of Changes in Net Assets; d) Statement of Cash Flow for the financial year then ended; and e) Notes to the Financial Statements.
The financial statements are prepared in accordance with the South African Standards of Generally Recognised Accounting Practice (GRAP) issued by the Accounting Standards Board.
Represented Political Parties’ Fund Annual Report 2020 59 The Auditor-General is responsible for reporting on whether the Annual Financial Statements are fairly presented in accordance with the applicable financial reporting framework.
The impact of COVID–19 on the reported financial statements of RPPF has been considered and does not constitute an adjusting post balance sheet event.
Going concern The RPPF is funded by National Treasury via a vote of Department of Home Affairs and funding is secured over a three year cycle in terms of the medium term expenditure framework (MTEF). The financial statements have thus been prepared on the going-concern basis.
Approval of the Annual Financial Statements The Annual Financial Statements of the Fund set out on pages 61 to 78 have been approved by the Accounting Officer.
Mr Phatudi Simon Mamabolo Chief Electoral Officer
Signed: Dated: 8 February 2021
60 Represented Political Parties’ Fund Annual Report 2020 Statement of Financial Position as at 31 March 2020
2020 2019 Notes R R
Assets Current assets Cash and cash equivalents 2.1 843,359 550,180 Trade and other receivables from non-exchange transactions 2.2 224 15,825 843,583 566,005
Total assets 843,583 566,005
Liabilities Current liabilities Trade and other payables from exchange transactions 3 976,057 - Trade and other payables from non-exchange transactions 3 128,753 - Total liabilities 1,104,810 - Net assets (261,227) 566,005 Accumulated (deficit) / surplus (261,227) 566,005
Total liabilities and net assets 843,583 566,005
3
Represented Political Parties’ Fund Annual Report 2020 61 Statement of Financial Performance for the year ended 31 March 2020
Notes 2020 2019 R R Revenue
Revenue from non-exchange transactions Investment revenue 4 708,221 363,645 Parliamentary allocation 4 157,760,000 149,394,000 Total Revenue 158,468,221 149,757,645
Expenses Allocation to parties 5 (158,319,396) (148,707,506) Administration expenses 6 (428,411) (315,539) Employee cost 7 (547,646) (548,306)
Total Expenses (159,295,453) (149,571,351)
(Deficit) / surplus for the year (827,232) 186,294
62 Represented Political Parties’ Fund Annual Report 2020 Statement of Changes in Net Assets for the year ended 31 March 2020
Accumulated Surplus R
Balance at 31 March 2018 379,711
Surplus for the year 186,294
Balance at 31 March 2019 566,005
(Deficit) for the year (827,232)
Balance at 31 March 2020 261,227
3
Represented Political Parties’ Fund Annual Report 2020 63 Cash Flow Statement for the year ended 31 March 2020
Note 2020 2019
R R
Cash flows from operating activities
Cash received from customers
Parliamentary allocation received 4 157,760,000 149,394,000
Investment revenue received 4 708,221 363,645
158,468,221 149,757,645 Cash paid to political parties, suppliers and employees Political parties (158,175,042) (148,761,481)
Employee costs paid 7 (547,646) (548,306)
Payments to suppliers 8 547,646 (1,479,958)
(158,175,042) (150,789,745)
Net cash flows from operating activities 9 293,179 (1,032,100)
Net Increase/(Decrease) in cash and cash 293,179 (1,032,100) equivalents Cash and cash equivalents at beginning of the 550,180 1,582,280 year Cash and cash equivalents at end of the 2 843,359 550,180 year
64 Represented Political Parties’ Fund Annual Report 2020 Comparison of Expenditure to Budget for the year ended 31 March 2020
Note 31 March 2020 31 March 2020 31 March 2020
R R R
Budget Actual Variance
Revenue Revenue from non-exchange transac- tions Parliamentary allocation 4 157,760,000 157,760,000 -
Investment revenue* 4 - 708,221 708,221
Total Revenue 157,760,000 158,468,221 708,221
Expenditure
Allocation to parties 5 (158,319,396) (158,319,396) -
Administration expenses 6 - (428 411) (428 411)
Employee cost 7 - (547,646) (547,646)
Total Expenditure (158,319,396) (159,295,453) (976,057)
(Deficit) / surplus for the year (559,396) (827,232) (267,836)
3 * Investment revenue is not budgeted for. * Administration expenses were expected to be covered by Investment revenue for the year and was not budgeted for. * Employee cost was not budgeted for because there was a lot of uncertainty about the Funds ability to generate enough investment revenue to cover the employee cost.
Represented Political Parties’ Fund Annual Report 2020 65 Accounting Policies for the year ended 31 March 2020
1. Presentation of annual Financial Statements
Basis of preparation The annual financial statements have been prepared on an accrual basis of accounting. A summary of the significant accounting policies, which have been consistently applied except where an exemption or transitional provision has been granted, are disclosed below.
Going concern These financial statements have been prepared on a going concern basis. The impact of COVID 19 on our allocation has been assessed and does not impact our going concern assessment.
Comparative figures When the presentation or classification of items in the annual financial statements is amended, prior period comparative amounts are restated, unless a Standard of GRAP does not require the restatements of comparative information. The nature and reason for the reclassification are disclosed. Where material accounting errors have been identified in the current year, the correction is made retrospectively as far as is practicable, and the prior year comparatives are restated accordingly. Where there has been a change in accounting policy in the current year, the adjustment is made retrospectively as far as is practicable, and the prior year comparatives are restated accordingly.
Statement of compliance The annual financial statements have been prepared in accordance with standards of Generally Recognised Accounting Practices (GRAP) including any interpretation guidelines and directives issued by the Accounting Standards Board (ASB), and the requirements of the Public Funding of Represented Political Parties Act, 1997 (Act No. 103 of 1997) and Public Funding of Represented Political Parties Regulations, 1998.
Basis of measurement The financial statements have been prepared on the historical cost basis except where indicated otherwise.
Functional and presentation currency These financial statements are presented in South African Rands, which is the Fund’s functional currency. All financial information presented in Rands has been rounded to the nearest R1.
Budgetary information The budget and the accounting basis do not differ. The financial statements for the Fund are prepared on the accrual basis using a classification based on the nature of expenses in the statement of financial performance. The budget is approved on the accrual basis.
Offsetting Assets, liabilities, revenue and expenses have not been offset, except when offsetting is permitted or required by a Standard of GRAP.
Use of estimates and judgements The preparation of the financial statements in conformity with GRAP requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenue and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.
66 Represented Political Parties’ Fund Annual Report 2020 Accounting Policies for the year ended 31 March 2020
New standards, amendments to existing standards adopted During the current financial year, the following GRAP standards became effective and were adopted by the Fund: GRAP 20 GRAP 104 amendments GRAP 105 GRAP 108
Significant accounting policies The principal accounting policies adopted and applied during this year of operation, are set out below and are consistent with those applied in the previous period.
1.1 Revenue from non-exchange transactions Revenue from non-exchange transactions refers to revenue that accrued to the Fund directly in return for services rendered, the value of which approximates the fair value of the consideration received or receivable.
When goods or services are exchanged or swapped for goods or services which are of a similar nature and value, the exchange is not regarded as a transaction that generates revenue. When goods are sold or services are rendered in exchange for dissimilar goods or services, the exchange is regarded as a transaction that generates revenue. The revenue is measured at the fair value of the goods or services received, adjusted by the amount of any cash or cash equivalents transferred. When the fair value of the goods or services received cannot be measured reliably, the revenue is measured at the fair value of the goods or services given up, adjusted by the amount of any cash or cash equivalents transferred.
Investment revenue comprises interest income on funds invested. Interest income is recognised on a time proportion basis using the effective interest method.
Revenue from non-exchange transactions refers to transactions where the Fund receives revenue from another entity without directly giving approximately equal value in exchange. Revenue from non-exchange transactions includes parliamentary allocations.
Parliamentary allocations are recognised when there is reasonable assurance that the Fund will comply with the conditions attached to them and the allocation will be received.3
Revenue is recognised when it is probable that future economic benefits or service potential will flow to the Fund and these benefits can be measured reliably. Revenue is measured at fair value of the consideration received or receivable and represents the amounts receivable for services provided in the normal course of business.
1.2 Financial instruments The Fund’s financial assets comprise trade and other receivables from non-exchange transactions, and cash and cash equivalents. Financial Assets are categorised according to their nature as either financial assets at fair value, financial assets at amortised cost or financial assets at cost.
The Fund’s financial liabilities comprise trade and other payables from exchange transactions and non-exchange transactions. Financial Liabilities are categorised as financial liabilities at amortised cost. The subsequent measurement of financial assets and liabilities depends on this categorisation.
Initial Recognition Financial assets and liabilities are recognised in the statement of financial position only when the Fund becomes a party to the contractual provisions of the instrument. The Fund recognises financial assets using trade date accounting.
Represented Political Parties’ Fund Annual Report 2020 67 Accounting Policies for the year ended 31 March 2020
Measurement When a financial asset or financial liability is recognised initially, the Fund measures it at its fair value plus, in the case of a financial asset or a financial liability not subsequently measured at fair value, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. Subsequent to initial recognition, financial assets and liabilities are measured as described below.
Trade and other receivables from non-exchange transactions Trade and other receivables from non-exchange transactions originated by the Fund classified as financial assets are measured at amortised cost using the effective interest method, less any impairment losses.
At the end of each reporting period, the carrying amount of trade and other receivables from non-exchange is reviewed to determine whether there is any objective evidence that the amount is not recoverable. If so, an impairment loss is recognised immediately in the statement of financial performance.
If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured as the difference between the assets carrying amount and the present value of estimated future cash flows calculated using the original effective interest rate (excluding future expected credit losses that have not yet been incurred). The carrying amount of the asset is reduced through the use of an allowance account and the amount of the loss is recognised in the Statement of Financial Performance. Interest income continues to be accrued on the reduced carrying amount based on the original effective interest rate of the asset. If, in a subsequent year, the amount of the estimated impairment loss increases or decreases because of an event occurring after the impairment was recognised, the previously recognised impairment loss is increased or reduced by adjusting the allowance account.
Cash and cash equivalents Cash equivalents are short-term highly liquid investments, readily convertible into known amounts of cash that are held with registered banking institutions with maturities of three months or less and are subject to an insignificant risk of change in value.
For purposes of the cash flow statement as well as the statement of financial position, cash and cash equivalents comprise cash on hand and other short-term investments. Cash and cash equivalents classified as financial assets at amortised cost.
Trade and other payables from exchange transactions and non-exchange transactions Trade and other payables from exchange transactions and non-exchange transactions are subsequently measured at amortised cost, using the effective interest method.
The Fund’s trade and other payables from exchange transactions and non-exchange transactions relate to the amount owed to the suppliers, and other accruals. The Fund’s accrual amount represents goods and services that have been delivered by the supplier but remain unpaid as at year-end.
Gains and losses For financial assets and financial liabilities measured at amortised cost or cost, a gain or loss is recognised in surplus or deficit when the financial asset or financial liability is derecognised or impaired, or through the amortisation process.
68 Represented Political Parties’ Fund Annual Report 2020 Accounting Policies for the year ended 31 March 2020
De-recognition of Financial Instruments Financial assets are de-recognised when the Fund loses control of the contractual rights that comprise the financial assets. The Fund loses control if the right to benefits specified in the contract are realised, the rights expire or the Fund surrenders those rights.
Financial liabilities are derecognised when the obligation is discharged, cancelled or expires.
1.3 Related Parties Related party transactions are transactions that involve the transfer of resources, services or obligations between related parties, regardless of whether a price is charged. Implicit in the definition of related party, there are other government entity and joint ventures that have a significant influence on the Fund and its activities.
1.4 Effect of New GRAP Standards and Interpretations of GRAP The following Standards and Interpretations of GRAP have been approved, but are not yet effective: GRAP 34: Separate Financial statements GRAP 35: Consolidated Financial statements GRAP 36: Investments in Associates and Joint Ventures GRAP 37: Joint Arrangements GRAP 38: Disclosure of Interests in other entities GRAP 104: Financial Instruments GRAP 110: Living and Non-living resources
The effective date for the above standards is 1 April 2020.
The adoption of these Standards of GRAP, when they become effective, is not expected to have a significant impact on the financial statements. The Fund does not participate in the transactions covered by GRAP 34, 35,36,37,38,110.
The following approved standards are being applied. GRAP 20 GRAP 104 amendments 3 GRAP 105 GRAP 108
Represented Political Parties’ Fund Annual Report 2020 69 Notes to the Annual Financial Statements for the year ended 31 March 2020
2020 2019 R R
2. Financial Assets by Category The accounting policies for financial instruments have been applied to the line items below. Financial assets measured at amortised cost
2.1 Cash and cash equivalents Bank balances – Call deposits 843,359 550,180 843,359 550,180
Cash and cash equivalents comprise cash and short-term, highly liquid investments that are held with a registered banking institution with maturities of three months or less and that are subject to insignificant interest rate risk. The carrying amount of these assets approximates to their fair value. No restrictions have been placed on the use of cash and cash equivalents for the operations of the Fund.
2.2 Trade and other receivables from non-exchange transactions Unspent amount repayable - APC 224 224 Unspent amount repayable - BRA - 606 Unspent amount repayable - EFF - 14,220 Unspent amount repayable - MF - 775 224 15,825
The Fund considers that the carrying amount of trade and other receivables from non-exchange transactions approximates the fair value due to their short-term maturity.
3. Financial Liabilities by Category The accounting policies for financial instruments have been applied to the line items below. Financial liabilities recognised at amortised cost
Trade accounts payable from exchange transactions Electoral Commission 943,327 - Payroll accruals 32,730 - 976,057 - Trade accounts payable from non-exchange transactions Political parties 128,753 - 1,104,810 -
Financial liabilities related to administrative expenses payable to the Commission and the amount owing to one political party for not submitting the audited annual financial statements.
4. Revenue Investment revenue from non-exchange and cash equivalents 708,221 363,645 Parliamentary Allocation 157,760,000 149,394,000 158,468,221 149,757,645
70 Represented Political Parties’ Fund Annual Report 2020 12,137 R 317,287 128,754 Total 8,110,202 2,001,215 7,792,915 3,185,060 4,028,633 2,531,899 7,694,099 19,220,261 158,319,396 158,178,505 111,724,423 (150,385,590) - - - - 95,607 (2,017) R (2,017) 440,000 411,390 128,300 (UDM) United United 1,073,280 1,073,280 Movement Movement Democratic Democratic (1,075,297) R 42,918 Pan Pan 42,918 42,918 (PAC) 128,754 171,672 Congress Congress Africanist Africanist R 883,200 Party (NFP) 883,200 883,200 883,200 National National Freedom Freedom - - - - 775 R 67,250 90,717 19,818 67,250 212,226 149,070 539,856 539,081 Minority (471,831) Front (MF) Front 1 8,937 R 192,555 548,485 502,774 665,238 201,492 1,276,034 1,353,178 1,084,683 Inkatha 5,622,948 5,622,948 Freedom Freedom Party (IFP) (5,430,393) - - - - 52 272 324 R 96,115 37,161 602,378 GOOD 735,926 735,926 (735,654) - - 84,464 R 214,022 507,549 150,989 (FF) 2,084,777 1,492,822 1,793,602 6,243,761 2,169,241 6,243,761 Freedom Freedom Front Plus Plus Front (4,158,984) - - 11 362 R 113,021 3,553,776 2,001,214 1,082,069 4,451,683 4,604,083 3,326,767 3,553,776 Freedom Freedom Economic Economic 19,143,975 19,132,613 (15,578,837) Fighters (EFF) Fighters - - 72,524 R 189,434 285,514 (602,482) 7,390,627 1,579,386 (413,048) 23,980,465 32,706,034 32,706,034 Democratic Democratic Alliance (DA) Alliance (33,308,516) R 343,343 343,343 343,343 343,343 (COPE) the People the People Congress of Congress - - 16,528 44,525 19,984 101,260 138,143 124,356 996,669 R 101,260 (ATM) 1,441,465 1,441,465
African African 3 (1,340,205) Movement Transformation Transformation - - - - - 369 86,335 86,704 R 3,151,745 (ANC) African African 83,029,504 National National Congress Congress 86,267,584 86,267,584 (86,181,249) - 181 4,500 58,911 56,450 98,321 41,750 R 59,092 155,130 149,192 564,254 564,254 (505,343) Al-Jama-Ah - - - Notes to the Annual FInancial Statements for the year ended 31 March 2020 ended 31 March the year for FInancial the Annual to Statements Notes 35,000 92,006 50,462 45,300 (9,639) R (9,639) 130,214 343,343 343,343 (AIC) (352,982) African African Congress Congress Independent - 33,850 26,887 12,144 R 992,456 370,941 242,785 230,372 363,170 African African 2,238,755 1,026,306 2,238,755 Christian (1,246,299) Democratic Democratic Party (ACDP) Expenditure per political partiesExpenditure 2020 Notes: by section 6(5) and section required 9(3) of the PFRPP Act or within the 2020 in time as year ended 31extended March for the financial • One political party financial statements did not submit the audited partyThe is ATM. deadline of 31 July 2020. by section 6(5) and section required 9(3) of the PFRPP Act or within the 2020 as deadline year ended 31extended March for the financial political parties Three financial statements did not submit the audited • NFP and PAC. COPE, are They of 31 July 2020. Allocation for the for Allocation year Unused funds Less: repayable Surplus / (deficit) the year for Unspent money at money at Unspent end of year Interest Plus: received Fixed asset and Fixed other expenditure Administrative Administrative expenditure and Promotion publications Travel expenditure Travel of Arrangements meetings and rallies Less: Suspended Less: the Act i.t.o. amount paid amount Total during the year Expenditure Total Personnel expenditure Accommodation expenditure 5.
Represented Political Parties’ Fund Annual Report 2020 71 38 150 R 440 532 (15 825) Total 1 840 413 1 399 881 2 337 435 1 814 690 6 768 717 2 824 930 2 208 885 18 930 211 148 707 506 112 476 732 148,723,331 148,761,481 148,723,331 (147 361 600) - - - - R 81 510 59 484 324 274 415 334 772 690 324 274 (UDM) United United 1,653,292 1,653,292 1,653,292 1,653,292 Movement Movement Democratic Democratic (1 329 018) 38 150 R 199,416 Pan Pan (PAC) 161,266 161,266 199,416 199,416 161,266 Congress Congress Africanist Africanist R Party (NFP) National National Freedom Freedom 2,396,353 2,396,353 2,396,353 2,396,353 2,396,353 2,396,353 - - - - - (775) (720) (720) R 353 221 124 394 145 529 Minority (623 144) 621,649 622,424 622,424 622,424 Front (MF) Front -
6 497 17 360 R 785 109 297 994 338 334 569 678 (14 444) 2 208 282 Inkatha 2 916 4,191,450 4,191,450 4,191,450 4,191,450 Freedom Freedom Party (IFP) (4 205 894) - -
15 772 R 120 744 604 836 536 937 640 467 597 273 (FF) (321 683) Freedom Freedom 2,178,574 2,178,574 2,178,574 Front Plus Plus Front (2 500 257) (305 911) 2,178,574 - -
6 513 R 947 044 334 818 (14 220) (EFF) 2 901 719 2 337 435 2 576 164 2 952 146 2 908 232 Fighters Freedom Freedom Economic Economic (9 147 607) 12,035,106 12,049,326 12,049,326 12,049,326 - - 89 533 R 384 796 7 201 439 1 277 652 1 205 171 26 245 718 (3 811 904) (3 427 108) Democratic Democratic Alliance (DA) Alliance (36 019 513) 32,207,609 32,207,609 32,207,609 32,207,609 - - -
44 986 R 655 161 295 389 (419 259) (COPE) 1 437 572 (415 744) 2,013,849 2,013,849 2,013,849 3 515 the People the People (2 433 108) Congress of Congress 2,013,849 - -
144 (606) 3 400 R 37 210 75 700 20 200 37 354 144 492 139 665 (BRA) 420,061 420,667 420,667 420,667 Bush - (383 457) Residents buckridge Association Association - - 83 83 (224) 1 500 5 083 79 300 42 000 33 300 R (APC) African African (161 183) People’s People’s 161,042 161,266 161,266 161,266 Convention Convention - - - 344 8 144 8 488 45 000 R 140 000 5 133 076 (ANC) African African 83 002 048 National National Congress Congress 88,328,268 88,328,268 88,328,268 88,328,268 (88 320 124) R Africa Africa South 322,533 Agang Agang 322,533 322,533 322,533 322,533 322,533 (AGANG) Notes to the Annual FInancial Statements for the year ended 31 March 2020 ended 31 March the year for FInancial the Annual to Statements Notes 30 000 22 925 80 400 R 891 919 (17 017) (17 017) (AIC) 1 008,227 1 008,227 1 008,227 1 008,227 Congress Congress African InAfrican - (1 025 244) dependent dependent - 12 088 16 970 R 139 655 393 204 172 455 184 456 306 311 Party (204 824) (ACDP) African African (192 736) 1 008,227 1 008,227 1 008,227 Christian 1 008,227 Democratic Democratic (1 213 051) Notes: MF. COPE and are BRA, They by section 6(5) and section required 9(3) of the PFRPP Act. 2019 in time as year ended 31 March for the financial political parties Three financial statements did not submit the audited • PAC. AGANG, NFP and are They by section 6(5 and section required 9(3) of the PFRPP Act. 2019 as year ended 31 March for the financial political parties Three financial statements did not submit the audited • Unused funds repayable Allocation Total Allocation for the for Allocation year Surplus / (deficit) for Surplus / (deficit) the year Plus: Interest Interest Plus: received Unspent money at money at Unspent end of year Fixed asset and other Fixed expenditure Promotion and Promotion publications Administrative Administrative expenditure Arrangements of Arrangements meetings and rallies Travel expenditure Travel Accommodation Accommodation expenditure Personnel Personnel expenditure Total Expenditure Total Plus: Suspended Plus: paid amount paid allocation Total during the year Expenditure per political partiesExpenditure 2019 Allocation for the for Allocation year
72 Represented Political Parties’ Fund Annual Report 2020 Notes to the Annual Financial Statements for the year ended 31 March 2020
2020 2019 R R
6. Administration Expenses Audit costs 374,092 252,640 Bank charges - 927 Printing and production of books 54,319 61,972 428,411 315,539
7. Employee Costs Salaries 547,646 548,306
8. Payment to suppliers Administrative expenses 428,411 315,539 (Increase) / decrease in trade and other payables from exchange transactions (976,057) 1,164,419 (547,646 ) 1, 479,958
9. Cash generated from operations (Deficit) / Surplus for the year (827,232) 186,294 Changes in working capital: 1,120,411 (1,218,394) - Increase / (Decrease) in trade and other payables from exchange transactions 976,057 (1,164,419) - Increase / (Decrease) in trade and other payables from non- exchange transactions 128,753 (38,150) - Decrease/(Increase) in trade and other receivables from non- exhange 3 15,601 (15 825) 293,179 (1,032,100)
Represented Political Parties’ Fund Annual Report 2020 73 Notes to the Annual Financial Statements for the year ended 31 March 2020
2020 2019 R R
10. Taxation No provision is made for taxation, as the Represented Political Parties’ Fund is exempted from taxation in terms of the Income Tax Act.
11. Related party balances Electoral Commission of South Africa 976,057 - Below is the breakdown Trade Payable from exchange transactions
Administrative expenditure 428,411 - Employee cost incurred 547,646 -
In line with prevailing government practices, functions provided on a no cost basis by the Electoral Commission to the Fund include the rendering of legal, financial, human resources management, information communication technology services, infrastructure and the exercise of internal control.
The Represented Political Parties’ Fund is managed by the Commission under the same financial policies and procedures applicable to the Commission, taking the stipulations of the Public Funding of Represented Political Parties Act 103 of 1997 into account. The current year expenditure is budgeted under the new Political Party Funding Unit of the Electoral Commission.
In terms of the Represented Political Party Fund’s expenditure allocation policy, all expenditure incurred in connection with the rendering of administrative services on a cost recovery basis, is expensed in the Fund.
The Parliamentary allocation transfer through the Department of Home Affairs has been disclosed in note 4.
Compensation of key management
Compensation of key management are not remunerated by The Fund as its paid by the Electoral Commission of South Africa.
12. Financial Instrument Risk Management The Fund’s activities have a limited exposure to market risk, credit risk, liquidity risk and cash flow risk. Risk management is carried out by the Executive Risk Management Committee under policies approved by the Commission. The Commission provides written policies which applies to the Fund for overall risk management, as well as written policies covering specific areas, such as investing excess liquidity. The Represented Political Parties’ Fund is managed by the Commission under the same financial policies and procedures applicable to the Commission, taking the stipulations of the Public Funding of Represented Political Parties Act 103 of 1997 into account.
74 Represented Political Parties’ Fund Annual Report 2020 Notes to the Annual Financial Statements for the year ended 31 March 2020
2020 2019 R R a) Liquidity risk The following are the contractual maturities of financial liabilities:
Carrying Contractual 1–12 months 2–5 years Later than 5 amounts cash flow years R R R R R
2020 Trade and other payables from exchange transactions (note 3) 976,057 976,057 976,057 - - Trade and other payables from non- exchange transactions 128,753 128,753 128,753 - -
2019 Trade and other - - - - - payables
Prudent liquidity risk management implies maintaining sufficient cash. Sufficient funding is maintained through planning processes. b) Cash flow The Fund manages its cash flow risk by aligning the quarterly government allocation to its quarterly payments 3 to parties. Parliamentary allocation (note 4) 157,760,000 149,394,000
Represented Political Parties’ Fund Annual Report 2020 75 2020 2019 R R
c) Credit risk With respect to credit risk arising from cash and cash equivalents, cash is placed with authorised financial institutions. The carrying amounts of the financial assets represent the maximum credit exposure.
There is minimal risk attached to trade and other receivables as these relate to (note 2.1):
Unspent amount repayable - APC 224 224 Unspent amount repayable - BRA - 606 Unspent amount repayable - EFF - 14,220 Unspent amount repayable - MF - 775 224 15,825
Receivables are monitored on an on-going basis with the result that exposure to bad debts is minimised. With respect to credit arising from cash and cash equivalents, cash is placed with authorised financial institutions. The carrying amounts of the financial assets represent the maximum credit exposure. The maximum exposure at the reporting date was:
d) Interest rate risk The Fund’s exposure to the risk of changes in market interest rates relates primarily to cash in the current account and notice deposits held with the bank. Cash and cash equivalents (note 2.2) 843,359 550,180
76 Represented Political Parties’ Fund Annual Report 2020 ANNEXURE A – 3 UNAUDITED DETAILED INCOME STATEMENT FOR THE YEAR ENDED 31 MARCH 2020
Represented Political Parties’ Fund Annual Report 2020 77 ANNEXURE A – Unaudited Detailed Income Statement for the year ended 31 March 2020
2020 2019 R R
Revenue 158,468,221 149,757,645
Government appropriation 157,760,000 149,394,000 Other Income
- Interest received 708,221 363,645
159,295,453 149,571,351 Expenditure
Allocations to parties 158,319,396 148,707,506 African Christian Democratic Party (ACDP) 2,238,755 1,008,227 African Independent Congress (AIC) 343,343 1,008,227 Agang South Africa (AGANG) - 322,533 African National Congress (ANC) 86,267,584 88,328,268 African Transformation Movement (ATM) 1,441,465 - African People's Convention (APC) - 161,042 AL-JAMA-AH 564,254 - Bushbuckridge Residents Association (BRA) - 420,061 Congress of the People (COPE) 343,343 2,013,849 Democratic Alliance (DA) 32,706,034 32,207,609 Economic Freedom Fighters (EFF) 19,143,975 12,035,106 Freedom Front (FF) 6,243,761 2,178,574 GOOD 735,926 - Inkatha Freedom Party (IFP) 5,622,948 4,191,450 Minority Front (MF) 539,856 621,649 National Freedom Party (NFP) 883,200 2,396,353 Pan Africanist Congress of Azania (PAC) 171,672 161,266 United Democratic Movement (UDM) 1,073,280 1,653,292
Personnel expenditure 547,646 548,306 Salaries: Employees 547,646 548,306
Administrative expenditure 374,092 253,567 Audit cost 374,092 252,640 Bank charges - 927
Promotion & publications 54,319 61,972 Printing and production of books 54,319 61,972
Deficit / surplus for the year (827,232) 186,294
78 Represented Political Parties’ Fund Annual Report 2020
Represented Political Parties’ Fund
Electoral Commission of South Africa Riverside Office Park 1303 Heuwel Avenue, Centurion, 0157 2020Telephone: +27 12 622 5700 Website: www.elections.org.za
RP53/2020 ISBN: 978-0-621-48176-1