OMBUD COUNCIL ANNUAL REPORT 2024/25

PART F: FINANCIAL INFORMATION

Amounts in Rand

2025

2024

24. COMMITMENTS (continued) TOTAL OPERATIONAL COMMITMENTS Already contracted for but not provided for

1,111,163

62,068

Not yet contracted for and authorised

1,642,242

294,068

2,753,405

356,136

OPERATING LEASES – COMMITMENTS MINIMUM LEASE PAYMENTS DUE – within one year

949,882

474,444

– in second to fifth year inclusive

-

474,444

949,882

948,888

Operating lease commitments represent rentals payable by the entity for office rental at office space occupied in Midrand from 1 April 2024 for a period of 2 years. The reason for the increase in commitment in the current year is that the Council entered into a second agreement in August 2024 for addtional office space which ends on 31 March 2026. No contingent rent is payable.

25. CONTINGENT LIABILITY In terms of Section 53(3) of the PFMA, a public entity may not accumulate surplus funds without approval from the National Treasury. Subject to the approval by the Board, the Ombud Council will request approval from the National Treasury to retain estimated cash surpluses amounting to R17.79 million to fund consumer education and awareness projects in the next financial year. As approval has not yet been granted, this is reflected as a contingent liability.

26. IRREGULAR, FRUITLESS AND WASTEFUL AND UNAUTHORISED EXPENDITURE The Ombud Council did not incur any irregular, fruitless and wasteful and unauthorised expenditure in the current financial year.

27. GOING CONCERN The annual 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 ability of the entity to continue as a going concern is dependent on a number of factors. The most significant of these is that the entity continues to receive Levy funding for the ongoing operations for the entity. The Ombud Council’s annual approved budget for the 2025/2026 financial year indicates that it continues business, with its full complement of employees and fulfilment of its mandate. The entity is solvent, and the liquidity ratios are favourable. There are no contingent liabilities that may jeopardise future operations and the cash flows are such that the Ombud Council can maintain its operations for at least one year of the reporting date of the financial statements.

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OMBUD COUNCIL ANNUAL REPORT 2024/25