ANNUAL GENERAL MEETING 2017/2018 Annual Financial Statements Presented by| Mr. Tsheola Matsebe Date| 29 November 2018

CONTENT Audit Opinion History Statement of Financial Performance Statement of Financial Position Statutory disclosures

AUDIT OPINION HISTORY Financial year Audit Opinion Number of findings 2012-2013 Qualified 99 2013-2014 Unqualified 58 2014-2015 Clean 35 2015-2016 26 2016-2017 25 2017-2018 22

STATEMENT OF FINANCIAL PERFORMANCE Description 2017-18 2016-17 Variance +/(-) R’ Million Revenue from Exchange Transactions 131 165 (20,6%) Revenue from Non-Exchange Transactions 1,567 1,611 (3%) Total Revenue 1,698 1,776 (4,4%) Mandatory Grants 167 186 (10,2%) Discretionary Grants 2,073 1,503 37,92% Administrative Expenses 278 250 (11,2%) Total Expenses 2,518 1,938 29,9% Surplus/(Deficit) (819) (162) 405%

STATEMENT OF FINANCIAL POSITION Description 2017-2018 2016-2017 Variance Increase/(Decrease) R’ Million Current assets 1,448 2,276 (36%) Non-current assets 170 126 34,9% Total Assets 1,618 2,403 (32,66%) Liabilities 632 597 5,86% Total Reserves 987 1,802 (45,22%) Discretionary commitments 3,590 2,921 22,9%

STATUTORY DISCLOSURE Description 2017-18 2016-17 2015-16 2014-15 2013-14 R’ Million Irregular expenditure 80* 0,817 10 64 Fruitless expenditure 0.00019** 144 217 * R79.4 million of the R80 million relates to administrative expenditure exceeding the 10.5% limit test where prior approval was obtained, however, further clarification on the approval was obtained post year end. The remaining balance was in relation to contract concluded in the prior financial years for critical services ** R19 thousand relates to penalties incurred from SARS as a result of PAYE contribution underpayment in the first month of using a new payroll system

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