start
finish
TEAM: The South African Institute
for Drug-Free Sport
PROJECT: Annual Report 2007-2008
2008TEAM: The South African Institute
for Drug-Free Sport
PROJECT: Annual Report 2007-2008
2008
South African Institute for Drug-Free Sport
Physical Address: Unit D2, Brookside Office Park, Claremont, Cape Town, South Africa, 7708
Postal Address: PO Box 2553, Clareinch, 7740, South Africa
Tel: + 27 21 683 7129 Fax: +27 21 683 7274 E-mail: [email protected]
Drug-Free Info Hotline: + 27 21 448 3888 Website: www.drugfreesport.org.za
RP99/2008
ISBN: 978-0-621-37855-9
This Annual Report is Printed onReviva White Recycled Paper and Board
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TEAM: SAIDS PROJECT: Annual Report 2007-2008
Table of Contents
01
About the SA Institute for Drug-Free Sport2
Chairman's Report3
CEO’s Report
5Board of Directors and SAIDS Organogram
7Doping Control Staff
9Doping Control Objectives and Achievements 10Doping Control Statistics
12Anti-Doping Rule Violations14Education - Objectives and Achievements16International Relations - Objectives and Achievements 17Anti-Doping Research - Objectives and Achievements 18Statement of Responsibility
19Corporate Governance21Auditor - General Report 24Audit Committee Report27Accounting Authority Report30Financial Statements33
Table of Contents
Annual Report
SAIDS2007-2008
The South African Institutefor Drug-Free Sport
TEAM: SAIDS PROJECT: Annual Report 2007-2008
About The South African Institutefor Drug-Free Sport
02
TEAM: SAIDS PROJECT: Annual Report 2007-2008
Chairman’s Report
03
About The South African Institute forDrug-Free Sport
The South African Institute for Drug-Free Sport (SAIDS) is a public entity established by an Act of
Parliament, Act No. 14 of 1997,
"To promote participation in sport free from the use of prohibited substances or methods intended
to artificially enhance performance, thereby rendering impermissible doping practices which are contrary
to the principles of fair play and medical ethics, in the interest of the health and well-being of
sportspersons; and to provide for matters connected therewith".
The Drug-Free Sport Act grants the Institute statutory drug testing powers and the authority to conduct
and enforce a national anti-doping programme. By virtue of the Institute’s legislative ambit, national
sports federations are obligated to co-operate with the Institute.
Since 1998 SAIDS has:
• Provided leadership in the development of a national anti-doping strategy in sport.
• Developed and implemented a comprehensive drug testing programme that includes all South
Africa’s major sporting codes and conforms to the highest international standards of the industry.
• Provided education and information on drugs in sport to all its target markets.
• Consulted to other African countries on building capacity towards developing an anti-doping
infrastructure on the continent.
• Collaborated with other national anti-doping agencies throughout the
world to achieve international harmonisation and improvement of standards
and practices in anti-doping.
The South African Institute for Drug-Free Sport is an organisation not
for gain. As such no dividends are declared to any members or outside
parties and all funds received are utilised for the furtherance of the
Institute’s objectives as outlined in Section 10 of the South African
Institute for Drug-Free Sport Act No. 14 of 1997.
The Institute for Drug-Free Sport receives the majority of its funding
from Sport and Recreation South Africa.
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Chairman’s ReportThe major international doping cases in the past two years have
been exposed through the sharing of intelligence based information
between law enforcement agencies and anti-doping entities. The
BALCO scandal in the U.S., of which Marion Jones was one of
the high profile culprits and the cases in cycling, notably Operation
Puerto, was the result of such co-operation between agencies.
This strategy allows the anti-doping authorities to target the entire
supply chain of banned substances in sport from the end-user
to the supplier and the manufacturer. In order for the strategy
to have a worldwide effect, international co-operation is essential.
Recently, Operation Raw Deal exemplified the value of such
international co-operation after an investigation that spanned
nine countries; U.S. authorities raided fifty six laboratories and
arrested 124 people for their involvement in the manufacturing
and trafficking of illegal drugs including banned substances in
sport. The ease through which these drugs are obtained via
the internet makes for unique challenges to anti-doping agencies
such as the SA Institute for Drug-Free Sport (SAIDS). In the ensuing
years our challenges in South Africa are to facilitate and develop the building blocks of better co-operation between
ourselves and the law enforcement bodies. Also, we need to create the legal framework to prosecute those who circumvent
medicine control regulations in order to manufacture and traffic illegal drugs to the sports community in the country.
An improved legal framework to support anti-doping activities will help to make our drug testing program more effective. A
framework that protects the rights of both whistleblowers and an intelligence network, will augment the intelligence-based target
testing in sport. The challenge for SAIDS is to increase target testing, which the new anti-doping code emphasises and secondly,
to increase out-of-competition unannounced tests. This more intelligence-based testing strategy will enable us to target the real
cheats and utilise our limited resources more effectively.
An additional challenge for SAIDS in the next year is to ensure effective implementation of the World Anti-Doping Code (WADC)
by January 2009. The strength of the WADC adopted five years ago was its ability to create harmonisation and uniformity across
sporting codes and international jurisdictions so that every anti-doping rule violation (ADRV) is prosecuted on the same set of rules
and penalties. The amended Code, adopted at the World Anti-Doping Agency’s (WADA) Conference in Madrid in November 2007,
is based on the experience of the last five years and creates more flexibility with respect to offences except in the case of ‘hard
drugs’ such as steroids, hormones and specific stimulants. Sanctions can also be decreased if an athlete provides substantial
assistance in further exposing an anti-doping rule violation (ADRV) or by the athlete’s own admission in the absence of other
evidence of doping – such as a confession prior to the test results being available. On the other hand aggravating factors such
as the use of multiple drugs or being part of a “conspiracy or common enterprise to commit on ADRV” could result in an increased
sanction of up to four years. This would allow the sanction to fit the crime.
As chairman, I believe we are facing up to our challenges as the leading anti-doping agency in Africa and we will continue to strive
to be the custodians of fair play and drug-free sport in the country. We will also seize on the many opportunities that cross our
path to further our strategic objectives. The major opportunity for SAIDS over the next two years is to provide the technical support
and expertise to the 2010 FIFA World Cup Local Organising Committee, as they prepare to build a doping control infrastructure
that will support the needs of the 2010 FIFA World Cup. Blood testing which will be mandatory for both the Confederation’s Cup
in 2009 and the FIFA 2010 World Cup requires our urgent attention in terms of building a FIFA compliant doping control infrastructure.
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TEAM: SAIDS PROJECT: Annual Report 2007-2008
CEO’s Report
05
04
TEAM: SAIDS PROJECT: Annual Report 2007-2008
Chairman’s Report
CEO’s ReportThis past year has been an extremely difficult year wherein the agency
faced many organisational challenges – staffing changes, the
appointment of a new board of directors as well as the changing of
our financial administrators. These three crucial elements played an
influential role in determining the course of the year.
The context of the organisational challenges was:
• Human Resources - the absence of a Chief Executive Officer
for a fourteen month period as well as the dismissal of a staff
member increased the workload of the remaining staff resulting
in dual responsibilities on operational and management issues.
• Financial – the qualified audit report in the previous financial
year necessitated a change in our financial administrators and
the implementation of better financial controls. The SAIDS Board
appointed A. Saban Consulting as the agency’s accountants so
that our accounting practices are more in compliance with both General Acceptable Accounting
Practices (GAAP) and the Public Finance Management Act (PFMA). I am proud of the fact that with the assistance
of the Saban Consulting company, the Institute received an unqualified audit report for the 2007/2008 financial year.
• Board – the term of the previous Board expired early in 2007. The Minister of Sport appointed a new Board in
November 2007 to develop and guide policy decisions over the next five years. As would be expected, a new
Board caused some transitional challenges for the Institute. Fortunately, the re-appointment of Dr Shuaib Manjra
(chairman), Mr Raymond Hack and Mr Chris Hattingh assured the agency of some administrative continuity.
The appointment of well-known anti-doping expert, Dr Ismail Jakoet and sports medicine specialists Dr Victor
Ramathesele and Dr Harold Adams, further contributed toward the agency regaining its organisational stability
and prestige. The Minister ushered in a new guard in the anti-doping field through the appointments of Dr Mamisa
Chabula, Dr Bevan Goqwana, Ms. Nomveliso Ntanjana and Prof. John Ojewole. The professional diversity of the
Board bodes well for the Institute in continuing to lead anti-doping efforts in Africa.
In spite of the difficulties and challenges of the past year, the agency continues to provide services of a high international
standard. We can point to the following noteworthy strategic outcomes as testimony to the quality of our services:
• Increased ratio of out-of-competition to in-competition doping controls.
• Managed anti-doping capacity building projects in Kenya, Egypt, Lesotho, Namibia and Sudan with the capacity
building of their doping control.
• Establishment of our Doping Control Review Committee under the chairmanship of Professor Hawksworth. The
committee reviews all anti-doping violations. The process of the committee is a best practice that is the envy of
many anti-doping organisations both in terms of the expertise represented on this committee as well as the
protocols followed.
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Furthermore, the appointment of our new CEO, Mr Khalid Galant is a welcome relief to the Board. Being the first General Manager
of SAIDS at its inception over 10 years ago, he arrives with the history and experience of that period and beyond. We welcome
him back. We thank Mr Fahmy Galant who held the fort for over a year for his sterling contribution to SAIDS. Our gratitude also
goes to the Minister of Sport and his Department for their continued support and commitment to our anti-doping initiatives.
Dr. Shuaib Manjra
Chairman of the Board
TEAM: SAIDS PROJECT: Annual Report 2007-2008
Board of Directors & Organogram
07
TEAM: SAIDS PROJECT: Annual Report 2007-2008
CEO’s Report
06
The transitionary period within the Institute was finally completed with the appointment of the new Chief Executive
Officer, Khalid Galant. The management expertise and anti-doping experience that Khalid brings with him ensures
greater stability, more experience and a dynamism that was sorely lacking within the organisation.
With the implementation of the new World Anti-Doping Code (WADC) due in January 2009, the challenges for anti-
doping organisations have increased. Greater strides and developments within education continue to be a major focus
area outlined in the WADC resulting in more efforts to generate funding and resources for the agency. Capacity building
for blood sampling, for the biological passport programme as instituted by the International Cycling Union (UCI) as
well as the preparation for the 2009 FIFA CONFED Cup, has already begun. While the challenges continue to mount,
I am confident that with the appointment of the new board under the helm of Dr. Shuaib Manjra and the new Chief
Executive Officer, we have begun to assemble the human resources capable to ensure the continued elevation of
the agency – the work within the first four months of the new financial year bears testimony to that.
In conclusion I would like to acknowledge and thank:
• The chairperson, Dr. Shuaib Manjra for his administrative and managerial support
• The Institute for Drug-Free Sport’s Staffing Committee for their support in providing their time and expertise
during an extremely difficult year
• Pamela Isaacs for her operational support during trying and difficult times
• A. Saban Consulting for their excellent assistance and support in developing and instituting the required systems
and processes in accordance with the PFMA regulations
• SAIDS doping control officers and chaperones who despite the numerous challenges that they face, continue
to perform their work with vigour, efficiency and professionalism
Fahmy Galant
Acting CEO
Board of Directors and Organogram
DR. SHUAIB MANJRA, MBChB BSc (Med.) (Hons) Sports Medicine DOH
Chairman
• Chairperson: Cricket SA Medical Committee
• Chairperson: Medical and Scientific Commission of the SA Confederation and Olympic Committee
• Member: SA Rugby Scientific and Research Committee
• Executive Committee Member: Association of National Anti-Doping Organisations
• Sports Physician
Dr. BEVAN GOQWANA, MBChB FCP
• Specialist Physician
MR. CHRIS HATTINGH, BscPharm.
• Member: North-West Provincial Legislature
• Member: North-West Legislature: Portfolio Committee Sports, Arts and Culture
• Chairperson: Athletics South Africa Doping Commission
MR. RAYMOND HACK, Attorney-At-Law
• Chief Executive Officer and Member of the National Executive Committee of the South African Football Association (SAFA)
• Chairman: SAFA Anti-Doping Commission and SAFA Legal Committee Member
• Member of World Anti-Doping Agency (WADA) Switzerland (Special Projects)
• Member of the WADA Working Group on Legal Matters
• Member of CAS (International Court of Arbitration for Sport) Switzerland – Arbitrator dealing with special matters in South Africa,
specifically in regard to Football
• Member of the FIFA 2010 World Cup South Africa Local Organising Committee
DR. ISMAIL JAKOET, MBChB MSc Sports Medicine, Diploma Labour Law
• Sports Physician
• Member: SA Rugby President's Council
• Member: The Institute of Directors of South Africa
MS. NOMVELISO NTANJANA, B. Proc (Law), Post–Graduate Diploma in Labour Law, Post–Graduate Diploma in Cyber Law,
Certificate in International Law, Certificate in Competitive Intelligence
• Legal Advisor, Part Time judicial panelist / adjudicator.
• Admitted as an Attorney of the High Court of South Africa
• Currently completing the NEPAD African Leadership Programme at Wits Business School.
DR. VICTOR RAMATHESELE, MBChB MSc Sports Medicine
• General Medical Officer: FIFA 2010 World Cup Local Organizing Committee
• Member: SA Football Association Medical Commission
• Radio and Television personality on health and wellness issues
DR. HAROLD ADAMS, MBChB
• Chief Medical Officer: Athletics South Africa
• Anti-Doping Officer: International Amateur Athletics Federation
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TEAM: SAIDS PROJECT: Annual Report 2007-2008
Doping Control Staff
09
TEAM: SAIDS PROJECT: Annual Report 2007-2008
Board of Directors & Organogram
08
DR. MAMISA CHABULA-NXIWENI, B.Sc, MBChB, Dip Obstetrics
• Executive Director: Environmental Health Services; Nelson Mandela Bay Municipality
• Board Member: Iilso Trust
• Board Member: Emmanuel Haven
PROF. JOHN OJEWOLE, B.Pharm.(Hons), M.Sc (Clin. Pharm)., PhD (Pharmacology)
• Head Of Department - Department of Pharmacology, Faculty of Health Sciences, University of KwaZulu-Natal
• Member: National Department of Health's Medicines Control Council's (MCC's) Sub-committee on 'Complementary and
Alternative Medicines (CAM)
Board of the SA Institutefor Drug-Free Sport
Chief Executive Officer
Doping Control Manager
Office Co-ordinator
Part Time: TUE DataCapturer
Education / ProjectsCo-ordinator
Doping ControlCo-ordinator
Part Time: DopingControl Logistics
Part Time: DopingControl Data Capturer
Minister of Sport
Part Time: AccreditedDoping Control Staff
GEOGRAPHICAL DISTRIBUTION OF DOPING
CONTROL OFFICERS IN SOUTH AFRICA
GEOGRAPHICAL DISTRIBUTION OF TRAINEE
DOPING CONTROL OFFICERS
DOPING CONTROL OFFICERS:
RACIAL DIVERSITY
TRAINEE DOPING CONTROL OFFICERS:
RACIAL DIVERSITY
DOPING CONTROL OFFICERS: GENDER TRAINEE DOPING CONTROL
OFFICERS: GENDER
15%
7%
6%
21%
4%
36%
7%4%
East LondonGauteng
Western CapeKwazulu-Natal North West
Port Elizabeth MpumalangaNorthern Cape
9%
12%
6%
20%
9%
32%
6%
6%
White Black
Male Female
18%
82%
66%
34%
71%
29%
66%
34%
Doping Control Staff
Free State
East London
Gauteng
Western Cape
Kwazulu-Natal
Port Elizabeth
Mpumalanga
Northern Cape Free StateNorth West
North West
Gauteng
Mpumalanga
Kwazulu-Natal
East London
Port Elizabeth
Western Cape
Tyler Hamilton (US cyclist) Steadfastly main-tained that his positive results for blood-
boosting was due to the presence of a twin in his mother’s womb which subsequently
disappeared Tyler Hamilton (US cyclist) Steadfastly maintained that his positive results
for blood-boosting was due to the presence of a twin in his mother’s womb which
subsequently disappeared Tyler Hamilton (US cyclist) Steadfastly maintained that his
positive results for blood-boosting was due to the presence of a twin in his mother’s
womb which subsequently disappeared Tyler Hamilton (US cyclist) Steadfastly maintained
that his positive results for blood-boosting was due to the presence of a twin in his
mother’s womb which subsequently disappeared Tyler Hamilton (US cyclist) Steadfastly
maintained that his positive results for blood-boosting was due to the presence of a
twin in his mother’s womb which subsequently disappeared Tyler Hamilton (US cyclist)
Steadfastly maintained that his positive results for blood-boosting was
due to the presence of a twin in his mother’s womb which
subsequently disappeared Tyler Hamilton (US cyclist) Steadfastly
maintained that his positive results for blood-boosting was due
to the presence of a twin in his mother’s womb which
subsequently disappeared Tyler Hamilton (US cyclist)
Steadfastly main-tained that his positive results for blood-
boosting was due to the presence of a twin in his mother’s
womb which subsequently disappeared Tyler Hamilton
(US cyclist) Steadfastly maintained that his positive
results for blood-boosting was due to the presence
of a twin in his mother’s womb which subsequently
disappeared Tyler Hamilton (US cyclist)
Steadfastly maintained that his positive
results for blood-boosting was due to
the presence of a twin in his mother’s
womb which subsequently disappeared
Tyler Hamilton (US cyclist) Steadfastly
maintained that his positive results for blood-
boosting was due to the presence of a twin in
his mother’s womb which subsequently
disappeared Tyler Hamilton (US cyclist) Steadfastly
maintained that his positive results for blood-boosting
was due to the presence of a twin in his mother’s womb
which subsequently disappeared Tyler Hamilton (US cyclist)
Steadfastly maintained that his positive results for blood-
boosting was due to the presence of a twin in his mother’s womb which
subsequently disappeared Tyler Hamilton (US cyclist) Steadfastly maintained that his
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TEAM: SAIDS PROJECT: Annual Report 2007-2008
Doping Control Objectives &Achievements
11
TEAM: SAIDS PROJECT: Annual Report 2007-2008
Doping Control Objectives &Achievements
10
Doping Control Objectives and Achievements
Strategic ObjectiveTo conduct an effective and efficient drug testing programme that is independent, reliable, secure and suitable
for the purpose of detecting and deterring the use of prohibited substances and methods.
The SA Institute for Drug-Free Sport (SAIDS) conducted 2541 tests during the 2007/2008 financial year.
Objective
To detect and deter the use
of performance enhancing
substances in sport
Eliminate procedural mistakes
and defects in the drug-testing
programme
Test results are reliable when
challenged
To conduct a drug testing
programme on South African
athletes from all sports codes
to detect and prevent drugs
in sport.
EPO tests are targeted at
athletes in certain sport
codes
Trained and accredited Doping
Control Officers (DCO)
Adequate, trained chaperones
throughout South Africa
Regional Coordinators who
conduct chaperone training
International Organisation for
Standardisation (ISO) Quality
System audited bi-annually
Procedures are amended to
comply with World Anti-
Doping Code (WADC)
requirements
Key Performance Indicator
Increase the ratio of
unannounced out-of-
competition tests
Regular and effective training
and updates regarding new
developments
Regular field audits
Adequate funds and
personnel.
Access to accurate athlete
whereabouts information
Annual training and refresher
courses, regular updates and
communication on new
developments in the anti-
doping world
Suitable, qualified field
personnel nationally
Increase in reporting of non-
conformities and decrease in
customer complaints
Continual improvement
Quality System aligned with
WADC and International
Standard for Testing
Target
50:50 (In-competition vs Out-
of-Competition)
60% Unannounced (Out-of-
Competition)
0-2%
97%
2500 tests
60 DCOs
70 Chaperones
10 Regional Coordinators
Two ISO office audits and one
field audit
Re-certification of Quality
System
WADC compliant
Actual
64:36 (In-competition vs Out-
of-Competition)
99% Unannounced
(Out-of-Competition)
0-1%
100%
2541 tests across 52 sport
codes
86 EPO tests were conducted
in Athletics and Cycling
53 DCOs
53 Chaperones
5 Regional Coordinators
Two ISO office audits and one
field audit
Ongoing
Three hundred and thirty three additional tests were
conducted by SAIDS on behalf of the World
Anti-Doping Agency (WADA), the Association
of National Anti-Doping Organizations (ANADO)
and various International Sport Federations. The
International Cricket Council contracted the Institute
to conduct the doping control at the 20-20 Cricket
World Cup in South Africa. A total of 61 doping controls
were conducted during the two week tournament.
SAIDS assisted the World Anti-Doping Agency with the Doping
Control Officer training for the African Zone V and Zone VI Regional
Anti-Doping Agencies. Over the past year, SAIDS doping control officers
mentored and trained doping control staff in Egypt, Ethiopia, Kenya,
Lesotho, Sudan and Namibia.
Performance against Objectives
TEAM: SAIDS PROJECT: Annual Report 2007-2008
Doping Control Statistics
13
TEAM: SAIDS PROJECT: Annual Report 2007-2008
Doping Control Statistics
12
Sport Code In- Out-of- Total Anti-DopingCompetition Competition Tests Rule Violations
Rugby 247 184 431 1
Athletics 283 89 372 0
Soccer 140 112 252 1
Cycling 111 50 161 0
Swimming 94 14 108 0
Hockey 70 27 97 1
Cricket 16 74 90 0
Powerlifting 48 34 82 4
Boxing (Professional) 82 0 82 1
Wrestling 36 45 81 1
Rowing 24 40 64 0
Paralympic Sport 39 23 62 1
Triathlon 52 2 54 0
Baseball 24 24 48 0
Judo 8 39 47 0
Mountain Bike 46 0 46 0
Canoeing 14 26 40 0
Tug-of-War 8 31 39 1
Volleyball 24 12 36 1
Netball 16 17 33 0
Motor Sport 28 4 32 1
Gymnastics 10 16 26 0
Shooting 20 0 20 1
Table Tennis 12 5 17 0
Badminton 8 9 17 0
Ice Hockey 16 0 16 0
Weightlifting 8 6 14 0
Boxing (Amateur) 8 5 13 0
Basketball 0 12 12 0
Doping Control Statistics
Sport Code In- Out-of- Total Anti-DopingCompetition Competition Tests Rule Violations
Surfing 11 0 11 2
Modern Pentathlon 11 0 11 0
Karate 0 11 11 0
Lifesaving 10 0 10 1
Korfball 4 6 10 1
Fencing 10 0 10 0
Volleyball (Beach) 8 0 8 1
Tennis 8 0 8 0
Squash 8 0 8 0
Snooker 8 0 8 2
Sailing 6 0 6 0
Rollerskating 6 0 6 0
Figure Skating 6 0 6 0
Aerobics 0 6 6 0
Equestrian 5 0 5 1
Wushu 4 0 4 0
Water Polo 4 0 4 0
Synchronised Swimming 4 0 4 0
Pool 4 0 4 0
Diving 4 0 4 0
Trampoline 0 2 2 0
Golf 2 0 2 0
Archery 0 1 1 0
SAIDS Tests 1615 926 2541 22
WADA tests 0 94 94 0
User Pay Tests 91 148 239 0
Total Overall Tests 1706 1168 2874 22
Percentage 59.36 40.64 100.00 0.77
TEAM: SAIDS PROJECT: Annual Report 2007-2008
Anti-Doping Rule Violations
15
TEAM: SAIDS PROJECT: Annual Report 2007-2008
Anti-Doping Rule Violations
14
No. Date of Test Surname Name G Sport Test Substance Identified/ Class of Substance Sanctions Imposed Anti-Doping StatusType Failure to Comply Rule Violation
1 14-Apr-07 van Tonder Edrick M Rugby Union IC 11-nor-delta9-tetrahydro- Cannabinoids 3 Month Suspension Yes Closedcannabinol-9-carboxylic acid
2 28-Apr-07 Chapman Justin M Lifesaving IC Benzoylecgonine Stimulant 2 Year Suspension Yes Closed
3 11-May-07 Smith William M Snooker IC Furosemide Diuretic Warning Yes Closed
4 9-Jun-07 van Wieringen Gary M Surfing IC 11-nor-delta9-tetrahydro- Cannabinoids Warning Yes Closedcannabinol-9-carboxylic acid
5 9-Jun-07 Roberts Brandon M Surfing IC 11-nor-delta9-tetrahydro- Cannabinoids Warning Yes Closedcannabinol-9-carboxylic acid
6 23-Jun-07 Kuisis Eugene James M Shooting IC Propranolol Beta-Blockers 3 Month Sanction Yes Open 4-hydroxypropranolol 7 5-Jul-07 Gertenbach Jasyn M Equestrian OC Failure to Comply Not Applicable 4 Month Sanction Yes Open
8 7-Jul-07 Matlhare Macpherson M Korfball IC 11-nor-delta9-tetrahydro- Cannabinoids 8 Month Suspension Yes Closedcannabinol-9-carboxylic acid
9 28-Jul-07 Joubert Alta F Tug-of-War OC Furosemide Diuretic 1 Year Sanction Yes Closed
10 3-Aug-07 Elekskandarani Mohamed M Powerlifting IC Epimetendiol Anabolic Agent 2 Year Suspension Yes Closed
11 3-Aug-07 Gardner Graham M Powerlifting IC Hydrochlorothiazide Diuretic 2 Year Suspension Yes Closed
12 7-Sep-07 Naran Hitesh M Snooker IC Bisoprolol Beta-Blockers Warning Yes OpenHydrochlorothiazide Diuretic
13 15-Sep-07 Swartz Quinton M Wrestling IC 11-nor-delta9-tetrahydro- Cannabinoids 6 Month Suspension Yes Closedcannabinol-9-carboxylic acid
14 23-Sep-07 Frost Sean M Motor Sport IC Methylphenidate Stimulant Warning Yes Open
Ritalinic Acid
15 25-Sep-07 Fredericks Faiz M Hockey IC 11-nor-delta9-tetrahydro- Cannabinoids 6 Month Suspension Yes Closedcannabinol-9-carboxylic acid
16 28-Sep-07 Tiyeka Phumzile M Boxing (P) IC Furosemide Diuretic 3 Month Suspension Yes Open
17 30-Sep-07 Mdingi Odinga M Wheelchair IC 11-nor-delta9-tetrahydro- Cannabinoids 14 Month Sanction Yes ClosedBasketball cannabinol-9-carboxylic acid
18 20-Oct-07 Wagner Peter M Volleyball IC 11-nor-delta9-tetrahydro- Cannabinoids 6 Month Sanction Yes Closedcannabinol-9-carboxylic acid
19 10-Nov-07 Benade Pieter M Powerlifting OC 19-norandrosterone Anabolic Agent 2 Year Suspension Yes Closed
19-noreticholanoloneEpimetendiol, Clenbuterol
20 23-Nov-07 Mahlatsi Petros M Soccer IC Betamethasone Glucocorticosteroid Warning Yes Closed
21 1-Dec-07 Krynauw Germaine M Beach Volleyball IC 11-nor-delta9-tetrahydro- Cannabinoids 6 Month Suspension Yes Closedcannabinol-9-carboxylic acid
22 17-Mar-08 Swanepoel Pieter M Powerlifting OC Hydrochlorothiazide Diuretic 2 Year Suspension Yes Closed
Anti-Doping Rule Violations
TEAM: SAIDS PROJECT: Annual Report 2007-2008
International Relations -Objectives and Achievements
17
TEAM: SAIDS PROJECT: Annual Report 2007-2008
Education - Objectives andAchievements
16
Education - Objectives and Achievements
Strategic ObjectiveTo implement a comprehensive national education and awareness programme that is relevant for specific target
groups, accessible, valid and measurable, for the purpose of preventing and deterring the use of prohibited
substances and methods.
Performance Against Objectives
Objective
Provide target markets with
accessible and relevant
information
Resources are available
Identify target groups and
provide workshops, lectures
and seminars
Identify and collaborate with
relevant organisations and
individuals
Update educational material
and develop relevant
presentations for the
appropriate target markets
Key Performance Indicator
Improved resources
Accessible information
Increase visibility of SAIDS
Improved resources and
greater awareness of SAIDS
Source suitable organisations
and education professionals
for collaborative partnerships
Availability of relevant material
Target
Athletes, sports federations,
school educators and learners,
medical, pharmaceutical,
sports science professionals
60
School educator’s community
counsellors
All target markets
Actual
Distributed 10 000 athlete’s
handbooks
Updated website
Improved use of drug-free sport
hotline
Outreach programme
conducted at the 2007 South
African Games
40 face-to-face interactions
through lectures and seminars
with target groups
The Institute actively
participated with the Western
Cape Substance Abuse Forum
of the Department of Social
Services
Anti-doping presentations
developed for young athletes
and sports persons
Presentations are conducted
on request by SAIDS or the
relevant organisation.
• Ten thousand copies of the “2007 Athletes’ Handbook ” were distributed to athletes, coaches, administrators, medical and
pharmaceutical professionals. The handbook contains a comprehensive list of both prohibited and permitted drugs in sport.
The drugs that are listed include the pharmacological description and the brand name under which the substance is available
to the South African market. The handbook is also available for download from the drug-free sport web site.
• SAIDS’ website www.drugfreesport.org.za had over 370 000 hits during the 2007-2008 financial year.
• Regional anti-doping staff conducted fourty lectures, workshops and seminars, across wide sports demographic. The
topics covered during these sessions ranged from the technical procedures of sampling collection to understanding the role
of therapeutic use-exemptions (TUEs) in doping to topical subjects in doping such as the Tour de France and Balco case.
• SAIDS serves on the Prevention and Education Portfolio Committee of the Western Cape Substance Abuse Forum. The forum
monitors and evaluates prevention and education projects and acts in an advisory capacity to the provincial and national drug
authority. Sports drugs are increasingly recognised and included as a necessary component of drug education and information
projects at the school and community level.
• As part of a strategy to increase SAIDS’s general visibility in sport and to reach a wider, more general audience, the agency
rolled out an outreach programme at the 2007 South African Games in Bloemfontein. SAIDS set up an outreach stand at the
various accommodation venues, where the athletes were encouraged to participate in the anti-doping quiz programme and
win prizes.
International Relations - Objectives and Achievements
Strategic ObjectiveTo participate in relevant international anti-doping alliances and collaborate and co-operate with SAIDS’
counterparts throughout the world, with a focus on Africa, for the purpose of contributing to the harmonisation
and improvement of standards and practices in all anti-doping issues.
The Institute participated in the following international activities:
16 April to 17 April WADA Symposium on the Investigatory Powers of Anti-Doping Organisations in London,
United Kingdom
Mr. Raymond Hack – Board Member
04 May to 05 May Association of National Anti-Doping Organizations (ANADO) Workshop in Pultusk, Poland
Dr. Shuaib Manjra – Board Chairperson
21 May UK Drug-Free Sport Best Practice Visit in London, United Kingdom
Mr. Chris Hattingh – Board Member
Mr. Fahmy Galant – Project Officer
22 May Anti-Doping Norway Best Practice Visit in Oslo, Norway
Mr. Chris Hattingh – Board Member
Mr. Fahmy Galant – Project Officer
24 May to 25 May WADA Doping Control Seminar in Tromso, Norway
Mr. Chris Hattingh – Board Member
Mr. Fahmy Galant – Project Officer
05 June to 07 June Romania/South Africa Anti-Doping Exchange Visit in Bucharest, Romania
Dr. Shuaib Manjra – Board Chairperson
16 September to 17 September ANADO General Assembly Meeting and Workshop in Tokyo, Japan
Dr. Shuaib Manjra – Board Chairperson
Staff and doping control officers of the SA Institute for Drug-Free Sport together with the WADA Africa office, conducted doping
control training in the African Zone V and Zone VI countries. The following doping control officers from SAIDS conducted training
in:
• Egypt by Albertus le Roux
• Kenya by Sandla Mbana and Sharief Gamiet
• Ethiopia by Chris Hattingh
• Lesotho by Leaquid and Eileen Khan
• Sudan by Pieter Cloete
• Namibia by Leaquid Khan, Vusi Cekiso, Adiel Edross
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TEAM: SAIDS PROJECT: Annual Report 2007-2008
Statement of Responsibility
19
TEAM: SAIDS PROJECT: Annual Report 2007-2008
Anti-Doping Research -Objectives and Achievements
18
Statement of Responsibility
The Public Finance Management Act, 1999 (Act No. 1 of 1999),
as amended, requires the directors to ensure that the South African
Institute for Drug-Free Sport keeps full and proper records of its
financial affairs. The annual financial statements should fairly present
the state of the South African Institute for Drug-Free Sport, its
financial results, its performance against predetermined objectives
and its financial position at the end of the year in terms of Generally
Accepted Accounting Practice (GAAP) including any interpretations
of such Statements issued by the Accounting Practices Board,
with the prescribed Standards of Generally Recognised Accounting
Practices (GRAP) issued by the Accounting Standards Board
replacing the equivalent GAAP Statement.
The annual financial statements are the responsibility of the
Accounting Authority. The external auditors are responsible for
independently auditing and reporting on the financial statements.
The annual financial statements have been prepared in accordance with the South African Statements of Generally
Accepted Accounting Practice. These annual financial statements are based on the consistent use of appropriate
accounting policies, supported by reasonable and prudent judgements and estimates.
The directors have reviewed the Institute’s budgets and cash flow forecasts for the year ended 31 March 2008.
On the basis of this review, and in view of the current financial position, the Directors have every reason to believe,
and the auditors concur, that the Institute will be a going concern in the year ahead, and have continued to adopt
the going concern basis in preparing the financial statements.
To enable the Directors to meet the above responsibilities, the Board of Directors sets standards and implements
systems of internal control and risk management that are designed to provide reasonable, but not absolute assurance
against material misstatements and losses. The Institute maintains internal financial controls to provide assurance
regarding:
• The safeguarding of assets against unauthorised use or disposition
• The maintenance of proper accounting records
• The reliability of financial information used within the business or for publication
• The compliance with the applicable legislation
The controls contain self-monitoring mechanisms, and actions are taken to correct deficiencies as they are identified.
Even an effective system of internal control, no matter how well designed, has inherent limitations including the
possibility of circumvention or the overriding of controls. An effective system of internal control therefore aims to
provide reasonable assurance with respect to the reliability of financial information and in particular financial statement
presentation. Furthermore, because of changes in conditions, the effectiveness of internal financial controls may
vary over time.
Anti-Doping Research - Objectives and Achievements
Strategic ObjectiveTo source and initiate research in sociological issues in respect of the knowledge, attitudes and use of performance
enhancing drugs among South African sportspeople, for the purpose of planning and implementing effective
drug-testing and education programmes.
Anti-doping research is an area that needs more attention in the forthcoming year. Scientific and social based research are integral
components of developing an effective and comprehensive education campaign. Drug-free sport messages that are supported
by quality scientific research will have more credibility with our target audiences.
Objective
Research into sociological
issues in respect of the
knowledge, attitudes and
use of performance
enhancing drugs and
nutritional ergogenic aids
among South Africa
sportspersons is initiated,
supported and maintained
as part of a prioritised
national sports research
programme
Key Performance Indicator
Sufficient resources and
suitable research applications
Target
One research topic to be
initiated
Actual
A research project under the
guidance of the Wits University
Centre for Exercise Science
and Sports Medicine was
initiated – The reasearch
proposal that was funded
looked at the following:
“Determining the use of
performance enhancing
substances by high school
students”
TEAM: SAIDS PROJECT: Annual Report 2007-2008
Corporate Governance
21
TEAM: SAIDS PROJECT: Annual Report 2007-2008
Statement of Responsibility
20
The Directors have reviewed the entity’s systems of internal control and risk management for the period
1 April 2007 to 31 March 2008. The Directors are of the opinion that the Institute’s systems of internal control and
risk management were effective for the period under review.
In the opinion of the directors, based on the information available to date, the annual financial statements fairly
present the financial position of the South African Institute for Drug-Free Sport at 31 March 2008 and the results
of its operations and cash flow information for the year, and that the Code of Corporate Practices and Conduct has
been adhered to.
The annual financial statements for the year ended 31 March 2008 were submitted for auditing on 31 May 2008
and approved by the Accounting Authority in terms of section 51(1)(f) of the Public Finance Management Act, 1999
(Act No. 1 of 1999), as amended, and signed on its behalf by:
DR. Shuaib Manjra Fahmy Galant
Chairperson Acting CEO
Corporate Governance
Introduction
Corporate governance is concerned with the organisational arrangements that have been put in place to
provide an appropriate set of checks and balances within which the stewards of the group operate. The
objective is to ensure that those to whom the stakeholders entrusted the direction and success of the
group act in the best interests of these stakeholders.
The South African Institute for Drug-Free Sport ensures that its processes and practices are reviewed on
an ongoing basis in order to ensure adherence to good corporate governance practices which are continually
benchmarked against international practices.
The Board of Directors believe that the group has substantially applied and complied with the principles
incorporated in the Code of Corporate Practices and Conduct as set out in the King Report on Corporate
Governance for South Africa 2002 as well as the Protocol on Corporate Governance in the Public Sector
2002.
Stakeholders
In addition to the interest of government as the shareholder, the South African Institute for Drug-Free Sport
acknowledges the interests of other stakeholders, including employees, creditors, customers, suppliers
and local communities.
The South African Institute for Drug-Free Sport regularly communicated with all stakeholders on material
matters of significant interest and concern to stakeholders. The information furnished to stakeholders
conforms to the criteria of promptness, openness, substance over form, relevance, clarity, effectiveness,
transparency and objectivity. The South African Institute for Drug-Free Sport places great emphasis on
reporting on both financial and non-financial matters, as well as addressing both positive and negative
aspects.
Governing Bodies
1. Board of Directors
The unitary board of directors comprises a majority of non-executive directors and meets at least quarterly.
The Chairperson and Members are appointed by the Minister in terms of the Act and their term of office
is five years. The Board is the Accounting Authority of the South African Institute for Drug-Free Sport in
terms of the PFMA and is responsible for the adoption of strategic plans, monitoring of operational
performance and management, determination of policy and processes to ensure the integrity of the group's
risk management and internal controls, and communication policy.
The remuneration of the Directors/Members is approved by the Executive Authority.
TEAM: SAIDS PROJECT: Annual Report 2007-2008
Corporate Governance
23
TEAM: SAIDS PROJECT: Annual Report 2007-2008
Corporate Governance
22
Number of board meetings held during the period under review - 4
Board Members and Meeting Attendance Record:
Dr. S Manjra (Chairperson) 4
Dr. H Adams 1
Dr. EM Chabula-Nxiweni 1
Dr. D Constantinou 2
Prof. Y Coopoo 2
Dr. MB Goqwana 2
Mr. R Hack 4
Mr. C Hattingh 4
Prof. W Hawksworth 2
Dr. I Jakoet 1
Ms. C Maphai 1
Ms. S Meltzer 2
Dr. S Motaung 1
Ms. N Ntanjana 1
Prof. JAO Ojewole 2
Dr. JVR Ramathesele 2
Mr. F Galant 4
(Acting CEO from 01/04/2007 to 31/01/2008)
2. Audit Committee
The Audit Committee is responsible for improving management reporting by overseeing audit functions,
internal controls and the financial reporting process.
The Audit Committee members up to the 9 July 2007 were Mr. Thulani Duncan Ntuli (Chairperson), Ms. Shirley
Mahanyele and Ms. Paledi Marota. These Audit Committee members resigned on the 9th July 2007. A new
Audit Committee was appointed on the 12th December 2007 and met once in the financial year 2007/2008.
The new Audit Committee members were Zethu Qunta (Chairperson), Humphrey Molemoeng, Nkateko
Mabaso, Lesibana Fosu and Shaila Hari, who declined the appointment.
Risk Assessment
A risk assessment exercise to identify significant business risks to the entity including operational risks which
could undermine the achievement of its objectives, was not conducted. This function was previously outsourced
to Deloitte whose contracted ended at the end of July 2007. Sport and Recreation South Africa assumed
this function as of August 2007, but only appointed an internal audit department in February 2008, which
was too late to conduct a risk assessment for the year under review. The internal audit department is in the
process of drafting a three year strategic plan and coverage plan for the 2008-2009 financial year and will
conduct a risk assessment during 2008-2009.
Despite the fact that no risk assessment exercise was conducted, the executive management, as mandated
by the board, has established a system of internal controls to manage risks. However certain gaps have been
identified which are to be rectified.
A system of internal control designed so that the management processes suit the specific operational
circumstances will be instituted. There is clear accountability for risk management that is a key performance
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area of management throughout the Institute. The requisite
risk and control capability will be assured through board
challenge and appropriate management selection and skills
development. Managers will be supported in giving effect
to their risk responsibilities through sound policies and
guidelines on risk and control management. Continuous
monitoring of risk and control processes across the
significant risk areas will provide the basis for regular and
exception reporting to the board.
There will be a report to the board at every board meeting
that appraises delivery against the risk strategy including
risk mitigation initiatives and their effectiveness. Regular
management reports will provide a balanced assessment
of key risks, as an important component of Board
assurance. Additional sources will include assertions
by the Financial Officer. The Board also receives
assurance from the Audit Committee, which partly derives its
information from regular internal and external audit reports on risk and internal control.
The group seeks to have a sound system of internal control based on the South African Institute for Drug-
Free Sport’s policies and guidelines. In conducting its annual review of the effectiveness of risk management,
the board considers the key findings from the ongoing monitoring and reporting management assertions and
independent assurance reports.
The Board is not entirely satisfied that there is an ongoing process for identifying, evaluating and managing
the significant risks faced by the entity.
The Board is of the opinion that appropriate risk management policies and practices need to be put in place
and that adequate systems and expertise will be applied to achieve compliance with those policies and
procedures.
Internal Aduit
The internal audit function was previously outsourced to Deloitte whose contracted ended at the end of July
2007. Sport and Recreation South Africa assumed this function as of August 2007, but only appointed an
internal audit department in February 2008, which was too late to conduct an internal audit for the year under
review. The internal audit department is in the process of drafting a three year strategic plan and coverage
plan for the 2008-2009 financial year and will conduct an internal audit during 2008-2009.
Code Of Ethics
A Code of Ethics has been developed and implemented, requiring all employees to maintain the highest
standards of behaviour. The Code provides clear guidance on the expected behaviour of all employees.
The directors are of the opinion that the Code of Ethics has been complied with.
TEAM: SAIDS PROJECT: Annual Report 2007-2008
Auditor-General Report
25
TEAM: SAIDS PROJECT: Annual Report 2007-2008
Auditor-General Report
24
Report of the Auditor-General to Parliamenton the Financial Statements and Performance Informationof the South African Institute for Drug-Free Sport for theyear ended 31 March 2008
Report on the Financial Statements
Introduction
1. I have audited the accompanying financial statements of the South African Institute for Drug-Free Sport which comprise the
statement of financial position as at 31 March 2008, statement of financial performance, statement of changes in net assets
and cash flow statement for the year then ended, and a summary of significant accounting policies and other explanatory
notes, as set out on pages 33 to 48.
Responsibility of the accounting authority for the financial statements
2. The accounting authority is responsible for the preparation and fair presentation of these financial statements in accordance
with the basis of accounting determined by the National Treasury, as set out in note 1 to the financial statements and in the
manner required by the Public Finance Management Act, 1999 (Act No. 1 of 1999) (PFMA) and the South African Institute for
Drug-Free Sport Act, 1997 (Act No. 14 of 1997). This responsibility includes:
• designing, implementing and maintaining internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error
• selecting and applying appropriate accounting policies
• making accounting estimates that are reasonable in the circumstances.
Responsibility of the Auditor-General
3. As required by section 188 of the Constitution of the Republic of South Africa, 1996 read with section 4 of the Public Audit
Act, 2004 (Act No. 25 of 2004) (PAA) and section 8(3) of the South African Institute for Drug-Free Sport Act, 1997 (Act No.
14 of 1997), my responsibility is to express an opinion on these financial statements based on my audit.
4. I conducted my audit in accordance with the International Standards on Auditing and General Notice 616 of 2008, issued in
Government Gazette No. 31057 of 15 May 2008. Those standards require that I comply with ethical requirements and plan
and perform the audit to obtain reasonable assurance on whether the financial statements are free from material misstatement.
5. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement
of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal
control relevant to the entity’s preparation and fair presentation of the financial statements 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.
6. An audit also includes evaluating the:
• appropriateness of accounting policies used
• reasonableness of accounting estimates made by management
• overall presentation of the financial statements.
7. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
Basis of accounting
8. The public entity’s policy is to prepare financial statements on the basis of accounting determined by the National Treasury,
as set out in note 1 to the financial statements.
Opinion
In my opinion the financial statements present fairly, in all material respects, the financial position of the South African Institute for
Drug-Free Sport as at 31 March 2008 and its financial performance and cash flows for the year then ended, in accordance with the
basis of accounting determined by the National Treasury, as set out in note 1 to the financial statements and in the manner required
by the PFMA.
Other Matters
Without qualifying my audit opinion, I draw attention to the following matters that relate to my responsibilities in the audit of the
financial statements:
Non-compliance with applicable legislation
9. Treasury Regulations
• No approved risk management strategy, fraud prevention plan and materiality and significance framework in place as required
by Treasury Regulation 27.2.1 and 28.3.
• No supply chain management unit in place as required by Treasury Regulation 16A 4.1.
• No written delegations are in place as required by Treasury Regulation 8.2.2.
Matters of governance
10.The PFMA tasks the accounting authority with a number of responsibilities concerning financial and risk management and internal
control. Fundamental to achieving this is the implementation of certain key governance responsibilities, which I have assessed
as follows:
Matter of governance Yes No
AUDIT COMMITTEE
• The public entity had an audit committee in operation throughout the financial year.
• The audit committee operates in accordance with approved written terms of reference.
• The audit committee substantially fulfilled its responsibilities for the year, as set out insection 77 of the PFMA and Treasury Regulation 27.1.8.
INTERNAL AUDIT
• The public entity had an internal audit function in operation throughout the financial year.
• The internal audit function operates in terms of an approved internal audit plan.
• The internal audit function substantially fulfilled its responsibilities for the year, as set out in Treasury Regulation 27.2.
OTHER MATTERS OF GOVERNANCE
The annual financial statements were submitted for audit as per the legislated deadlines(section 55 of the PFMA for public entities).
The financial statements submitted for audit were not subject to any material amendmentsresulting from the audit.
No significant difficulties were experienced during the audit concerning delays or theunavailability of expected information and/or the unavailability of senior management.
The prior year's external audit recommendations have been substantially implemented.
TEAM: SAIDS PROJECT: Annual Report 2007-2008
Audit Committee Report
27
TEAM: SAIDS PROJECT: Annual Report 2007-2008
Auditor-General Report
26
Other Reporting Responsibilities
Report on Performance Information
11.I have reviewed the performance information as set out on pages 10 to 18.
Responsibility of the accounting authority for the performance information
12.The accounting authority has additional responsibilities as required by section 55(2)(a) of the PFMA to ensure that the annual
report and audited financial statements fairly present the performance against predetermined objectives of the public entity.
Responsibility of the Auditor-General
13.I conducted my engagement in accordance with section 13 of the PAA read with General Notice 616 of 2008, issued in
Government Gazette No. 31057 of 15 May 2008.
14.In terms of the foregoing my engagement included performing procedures of an audit nature to obtain sufficient appropriate
evidence about the performance information and related systems, processes and procedures. The procedures selected depend
on the auditor’s judgement.
15.I believe that the evidence I have obtained is sufficient and appropriate to provide a basis for the audit findings reported below.
Audit findings (performance information)
Content of strategic plan
16.I draw attention to the fact that the strategic plan of the South African Institute for Drug-Free Sport did not include expected
outcomes as identified by the executive authority as well as key performance measures/indicators for assessing the public
entity’s performance in delivering the desired outcomes and objectives.
Lack of access to records
17.I was unable to obtain sufficient appropriate audit evidence in relation to the performance information of the South African
Institute for Drug-Free Sport as I was unable to obtain access to the records pertaining to the number of athlete's handbooks
distributed.
Appreciation
18.The assistance rendered by the staff of the South African Institute for Drug-Free Sport during the audit is sincerely appreciated.
Cape Town
31 July 2008
Sport and Recreation South Africa
Report of the Audit Committee
We are pleased to present our report for the financial year ended 31 March 2008.
Audit Committee members and attendance:
The Audit Committee consisted of the members listed hereunder and meets four times per annum as per its approved terms of
reference. Two meetings took place during the 2007/2008 financial year.
Name of member Number of meetings attended
TD Ntuli (chairperson) 1
Paledi Marota 1
Shirley Mahanyele 0
The Audit Committee members resigned on the 9th July 2007.
A new Audit Committee was appointed on the 12th December 2007
and met once in the financial year 2007/2008.
The Committee never discussed the financial affairs of the entity.
Zethu Qunta (chairperson) 1
Humphrey Molemoeng 1
Nkateko Mabaso 1
Lesibana Fosu 0
Shaila Hari 0
Shaira Hari declined the appointment.
Audit Committee Responsibility
The Audit Committee reports that it has complied with its responsibilities arising from section 38(1)(a) of the PFMA and Treasury
Regulations 3.1.13. The Audit Committee also reports that it has adopted appropriate, formal terms of reference such as its audit
committee charter, has regulated its affairs in the compliance with this charter and had discharged all its responsibilities as contained
therein.
The effectiveness of internal control
The system of controls is designed to provide cost effective assurance that assets are safeguarded and that liabilities and working
capital are efficiently managed. In line with the PFMA and the King II report on Corporate Governance requirements, Internal Audit
provides the Audit Committee and management with assurance that the internal controls are appropriate and effective. This is
achieved by means of the risk management process, as well as the identification of corrective actions and suggested enhancements
to controls and process.
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TEAM: SAIDS PROJECT: Annual Report 2007-2008
29
TEAM: SAIDS PROJECT: Annual Report 2007-2008
Audit Committee Report
28
The system of internal control is not effective as the various reports of the Internal Auditors, and management letter of the Auditor-
General, it was noted that there are significant and material non-compliance with prescribed policies and procedures. Accordingly,
we can report that the systems of internal controls for the period under review were not efficient and effective.
The quality of in year management and monthly / quarterly reports submitted in terms of the Act and the Division of Revenue Act.
The Department Internal Audit function was outsourced until end of July 2007. The Chief Audit Executive was transferred to another
department and an Acting Chief Audit Executive was appointed from the 1st August 2007. The Internal Audit did not perform
regularity audits because the auditors were only appointed on the 1st March 2008 but had facilitated a risk management process.
Evaluation of financial statements
The Audit Committee has
• Not reviewed and discussed with the Auditor-General and the Accounting Officer the audited and annual financial statements
to be included in the annual report;
• Reviewed the Auditor-General’s management letter and management response;
• Not reviewed changes in accounting policies and practices.
The Audit Committee concurs and accepts the conclusions of the Auditor-General 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.
______________________________
Chairperson of the Audit Committee
Date: __________________________
THE SOUTH AFRICANINSTITUTEFOR DRUG-FREE SPORT(Act No. 14 of 1997)
Annual Financial Statements 31 March 2008
BOARD MEMBERS
DR. SI MANJRA (Chairperson )
MR. R HACK
MR. C HATTINGH
DR. H ADAMS
DR. EM CHABULA-NXIWENI
DR. MB GOQWANA
DR. I JAKOET
MS. N NTANJANA
PROF. JAO OJEWOLE
DR. JRV RAMATHESELE
APPROVAL OF FINANCIAL STATEMENTS
The annual financial statements, set out on pages 33 to 48, have been
approved by the Chairperson and are signed by him.
................................................
DR. SI MANJRA
31 JULY 2008
TEAM: SAIDS PROJECT: Annual Report 2007-2008
Accounting Authority Report
31
TEAM: SAIDS PROJECT: Annual Report 2007-2008
30
THE SOUTH AFRICAN INSTITUTE FOR DRUG-FREE SPORT
Accounting Authority Reportfor the year ended 31 March 20081. Introduction
The directors present their annual report that forms part of the audited annual financial statements of the entity for the year ended
31 March 2008.
The entity was established by an Act of Parliament (Act No.14 of 1997) and is listed as a national public entity in schedule 3A of
the Public Finance Management Act, 1999, as amended (PFMA).
The board of directors acts as the accounting authority in terms of the PFMA.
2. Directors Of The Entity
Non-Executive Directors:
Dr. SI Manjra – Chairperson (re-appointed 1 November 2007)
Mr. R Hack (re-appointed 1 November 2007)
Mr. C Hattingh (re-appointed 1 November 2007)
Dr. H Adams (appointed 1 November 2007)
Dr. EM Chabula-Nxiweni (appointed 1 November 2007)
Dr. MB Goqwana (appointed 1 November 2007)
Dr. I Jakoet (appointed 1 November 2007)
Ms. N Ntanjana (appointed 1 November 2007)
Prof. JAO Ojewole (appointed 1 November 2007)
Dr. JRV Ramathesele (appointed 1 November 2007)
Prof. Y Coopoo (end of term 31 October 2007)
Prof. W Hawksworth (end of term 31 October 2007)
Dr. D Constantinou (end of term 31 October 2007)
Ms. C Maphai (end of term 31 October 2007)
Ms. S Meltzer (end of term 31 October 2007)
Dr. S Motaung (end of term 31 October 2007)
Mr. MF Galant was the acting Chief Executive Officer and Board Secretary for the year under review. His business and postal
address are as follows:
Business Address: Postal Address:
Brookside Office Park P O Box 2553
Twickenham Building Clareinch
11 Lansdowne Road 7740
Claremont
7700
3. Principal Activities
The principal activities of the entity during the year comprise the development and implementation of anti-doping policy and
procedures. This includes implementing a drug-testing programme across all the South African sporting codes, providing education
and information programmes for all its target markets and collaborating internationally on the development and harmonisation
of anti-doping standards and procedures.
4. Events Subsequent to Statement of Position Date
The directors are not aware of any matters or circumstances arising since the end of the financial year, not otherwise dealt with
in the annual financial statements, which significantly affect the financial position of the entity or the results of its operations.
5. Addresses
The entity's business, postal and registered addresses are as follows:
Business Address: Postal Address: Registered Address:
Brookside Office Park P O Box 2553 Brookside Office Park
Twickenham Building Clareinch Twickenham Building
11 Lansdowne Road 7740 11 Lansdowne Road
Claremont Claremont
7700 7700
6. Jurisdiction And Domicile
The entity resides and is effectively managed in the Republic of South Africa.
7. Controlling Entity
The entity falls under the control of Sport and Recreation South Africa (SRSA).
The directors wish to disclose the fact that a Doping Control Officer engaged by the Institute acts as Chief Director: Client Services,
Liaison, Events & Facilities for Sport and Recreation South Africa. Her duties include approval of the funding for the Institute from
Sport and Recreation South Africa. The approval process, however, is subject to stringent review and approval by other officials.
The Doping Control Officer is remunerated for time according to the Institute’s established policies.
Approval
The annual financial statements, set out on pages 33 to 48, have been approved by the Chairperson and are signed by him.
...............................................................
DR. SI MANJRA
CHAIRPERSON
31 JULY 2008
Accounting Authority Report
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Financial Statements
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32
Compilation Report to theManagement of the South AfricanInstitute for Drug-Free SportOn the basis of information provided by management we have compiled, in
accordance with the statements of standards applicable to compilation
engagements as issued by the South African Institute of Chartered Accountants,
the statement of financial position of the South African Institute for Drug-Free
Sport at 31 March 2008, and the related statement of financial performance and
cash flow statement for the year then ended, as set out on pages 33 to 48.
The management is responsible for these financial statements. We have not
audited or reviewed these financial statements and accordingly express no
assurance thereon.
A SABAN CA (SA)
A SABAN CONSULTING C.C.
CAPE TOWN
31 JULY 2008
Accounting Authority Report
The South African Institute for Drug-Free SportStatement of Financial Performance for the year ended 31 March 2008
2008 2007
NOTE R R
REVENUE 6 369 537 6 183 867
Grants received 2 5 200 000 5 000 000
Doping control sales 1 169 537 1 183 867
OTHER INCOME 336 023 73 365
Allowance for doubtful debts 205 155 0
Interest received 75 007 73 365
Profit on foreign exchange 2 669 0
Profit on disposal of assets 3 192 0
Sponsorship 50 000 0
EXPENSES 7 419 108 6 800 393
ADMINISTRATION EXPENDITURE 2 564 697 2 438 073
Accounting fees 165 005 67 830
Advertising 0 18 888
Audit fee 227 511 79 429
Allowance for doubtful debts 0 205 155
Bank charges 13 590 15 234
Cleaning 12 820 10 817
Computer expenses 16 165 24 909
Depreciation 427 939 424 025
Entertainment 25 122 23 636
Honoraria fees 178 326 130 492
Insurance 22 200 25 282
Finance costs 112 9
Legal fees 7 840 0
Loss on foreign exchange 0 28 654
Office rental 230 587 210 314
Postage and telephone 101 066 104 244
Printing and stationery 31 467 32 344
Payroll costs 874 989 980 840
- Net salaries 602 151 720 638
- Employees income tax 218 555 179 596
- Unemployment insurance fund 8 430 9 427
- Skills development levy 6 259 7 886
- Leave pay 0 4 615
- Medical aid 12 168 18 243
- Pension fund 27 426 40 435
Repairs and maintenance 12 934 4 903
RSC levies 0 1 413
Security expenses 4 074 3 739
Staff amenities 34 874 7 754
Staff recruitment and training 13 777 0
Subscriptions 1 106 676
Travelling and accommodation 163 193 37 486
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The South African Institute for Drug-Free SportStatement of Financial Performance for the year ended 31 March 2008
2008 2007
NOTE R R
EDUCATION PROGRAMME 371 831 320 076
Books and magazines 203 783 176 320
Medicine info centre - hotline 45 952 44 670
Research 43 835 0
Seminars and workshops 27 917 26 735
Travelling accommodation and lecture costs 14 784 35 043
Website development costs 35 560 37 308
DOPING CONTROL 4 256 686 3 878 630
Drug kits 355 359 385 080
Opening inventory 373 945 43 630
Drug kits – purchases 340 338 715 395
Closing inventory (358 924) (373 945)
Bad debts 145 879 0
Courier costs 161 932 147 368
Insurance - medical malpractice 70 093 59 731
Printing and stationery 19 721 36 438
Repairs and maintenance 9 198 6 005
Training and development 0 133 357
Travelling accommodation and DCO 1 160 915 1 021 756
reimbursements
Advertising and promotions 0 175
Laboratory analysis 2 333 589 2 088 720
INTERNATIONAL PROJECTS 215 619 145 803
Subscriptions – ANADO 15 685 67 309
Printing and stationery 0 3 156
Travel and accommodation 199 934 75 338
CORPORATE SERVICES 10 275 17 811
Corporate gifts 0 8 208
Quality assurance and costs 10 275 9 603
NET DEFICIT (713 548) (543 161)
TRANSFER FROM GENERAL RESERVE 399 754 399 754
NET DEFICIT FOR THE YEAR (313 794) (143 407)
ACCUMULATED SURPLUS
BROUGHT FORWARD 453 189 596 596
ACCUMULATED SURPLUS AT
THE END OF THE YEAR 139 395 453 189
The South African Institute for Drug-Free SportStatement of Financial Position as at 31 March 2008
2008 2007
NOTE R R
ASSETS
NON - CURRENT ASSETS
Property, plant and equipment 3 817 368 1 197 815
CURRENT ASSETS 1 157 593 1 259 862
Inventories 4 358 924 373 945
Trade and other receivables 5 502 001 270 443
Prepayments and deferred expenses 19 417 0
Loans receivable 4 078 2 750
Cash and cash equivalents 273 173 612 724
TOTAL ASSETS 1 974 961 2 457 677
LIABILITIES
CURRENT LIABILITIES 1 088 734 857 902
Accruals 6 117 459 95 204
Provisions 6 8 132 14 261
Payables 6 963 143 748 437
TOTAL LIABILITIES 1 088 734 857 902
EQUITY
CAPITAL AND RESERVES 886 227 1 599 775
Accumulated surpluses 139 395 453 189
General reserve 7 746 832 1 146 586
TOTAL EQUITY AND LIABILITIES 1 974 961 2 457 677
TOTAL NET ASSETS 886 227 1 599 775
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The South African Institute for Drug-Free SportStatement of Changes in Net Assets for the year ended 31 March 2008
GENERAL ACCUMULATED TOTAL
RESERVE FUNDS
R R R
Balance at 31 March 2006 1 546 340 596 596 2 142 936
Utilisation of general reserve (399 754) 399 754 0
Net deficit for the year 0 (543 161) (543 161)
Balance at 31 March 2007 1 146 586 453 189 1 599 775
Utilisation of general reserve (399 754) 399 754 0
Net deficit for the year 0 (713 548) (713 548)
Balance at 31 March 2008 746 832 139 395 886 227
The South African Institute for Drug-Free SportCash Flow Statement for the year ended 31 March 2008
2008 2007
NOTE R R
NET CASH FLOW FROM
OPERATING ACTIVITIES
Cash received from customers 6 129 202 6 184 933
Cash paid to suppliers and creditors (6 496 156) (5 971 564)
Cash (utilised in)/generated from operations 12.1 (366 954) 213 369
Investment income 75 007 73 365
Profit on disposal of assets (3 192) 0
Finance costs (112) (9)
Net cash (outflow)/inflow from operations (295 251) 286 725
NET CASH FLOW FROM
INVESTING ACTIVITIES
Additions to fixed assets (47 839) (15 712)
Proceeds on sale of assets 3 539 0
Net cash outflow from investing activities (44 300) (15 712)
NET CASH FLOW FROM
FINANCING ACTIVITIES
Loans advanced 0 (3 000)
Loans redeemed 0 250
Net cash outflow from financing activities 0 (2 750)
Cash and cash equivalents
Net (decrease)/increase (339 551) 268 263
Cash and cash equivalents at the beginning of
the year 12.2 612 724 344 461
Cash and cash equivalents at the end of the year 12.2 273 173 612 724
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The South African Institute for Drug-Free SportNotes to the Financial Statements for the year ended 31 March 2008
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The annual financial statements have been prepared in accordance with the South African Statements of Generally Accepted
Accounting Practice (GAAP) including any interpretations of such Statements issued by the Accounting Practices Board, with the
effective Standards of Generally Recognised Accounting Practice (GRAP) issued by the Accounting Standards Board replacing
the equivalent GAAP statement as follows:
Standard of GRAP Replaced Statement of GAAP
GRAP 1: Presentation of financial statements AC101: Presentation of financial statements
GRAP 2: Cash flow statements AC118: Cash flow statements
GRAP 3: Accounting policies, changes in accounting AC103: Accounting policies, changes in accounting estimatesestimates and errors and errors.
Currently the recognition and measurement principles in the above GRAP and GAAP Statements do not differ or result in material
differences in items presented and disclosed in the financial statements. The implementation of GRAP 1, 2 and 3 has resulted in
the following changes in the presentation of the financial statements:
Terminology differences:
Standard of GRAP Replaced Statement of GAAP
Statement of financial performance Income statement
Statement of financial position Balance sheet
Statement of changes in net assets Statement of changes in equity
Net assets Equity
Surplus/deficit Profit/Loss
Accumulated surplus/deficit Retained earnings
Contributions from owners Share capital
Distributions to owners Dividends
The cash flow statement can only be prepared in accordance with the direct method.
Specific information has been presented separately on the statement of financial position such as:
(a) Receivables from non-exchange transactions, including taxes and transfers
(b) Taxes and transfers payable
(c) Trade and other payables from non-exchange transactions
Amount and nature of any restrictions on cash balances is required.
Paragraphs 11 – 15 of GRAP 1 have not been implemented due to the fact that the local and international budget reporting
standard is not effective for this financial year. Although the inclusion of budget information would enhance the usefulness of the
financial statements, non-disclosure will not affect the objective of the financial statements.
The following are the principal accounting policies of the entity which are, in all material respects, consistent with those applied
in the previous year, except as otherwise indicated:
Basis of Preparation
The financial statements have been prepared on a going concern basis and the accounting policies have been applied consistently
throughout the period as those applied in the previous year.
1.1 REVENUE RECOGNITION
Revenue consists of Grant Income and Drug Testing revenue. Drug Testing revenue is recognised when the service has been
provided and the costs incurred for the service and the cost to complete the service can be measured reliably.
1.2 IRREGULAR, FRUITLESS AND WASTEFUL EXPENDITURE
Irregular expenditure means expenditure incurred in contravention of, or not in accordance with, a requirement of any applicable
legislation, including:
The PFMA, or any Provincial legislation providing for procurement procedures in that provincial government.
Fruitless and wasteful expenditure means expenditure that was made in vain and would have been avoided had reasonable care
been exercised.
All irregular, fruitless and wasteful expenditure is charged against income in the period in which it is incurred.
1.3 FOREIGN CURRENCIES
These financial statements are presented in the South African Rand since that is the currency in which the majority of the entity's
transactions are denominated.
Transactions in currencies other than the entity's reporting currency ( rand ) are initially recorded at the rates of exchange ruling on the
dates of the transactions. Gains and losses arising from the settlement of such transactions are recognised in the statement of financial
performance.
Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling on the statement of
financial position date. Unrealised differences on monetary assets and liabilities are recognised in the statement of the financial performance
in the period in which they occurred.
1.4 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is charged so as to write off the
cost or valuation of assets over their estimated useful lives, using the straight line method, on the following basis:
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40
The South African Institute for Drug-Free SportNotes to the Financial Statements for the year ended 31 March 2008
Rates utilised
Office Equipment 16.67%
Motor Vehicles 25.00%
Furniture and Fittings 16.67%
Computer Equipment 33.33%
EPO Equipment 20.00%
The residual values, useful lives and depreciation method of property, plant and equipment are reviewed on an annual basis.
Profit and losses on disposal of property, plant and equipment are credited and charged to statement of financial performance.
The carrying values of property, plant and equipment are reviewed for impairment on an annual basis. When events or changes
in circumstances indicate that the carrying value may not be recoverable, the assets are written down to their recoverable amount.
1.5 INVENTORY
Inventories are stated at the lower of cost and net realisable value. Cost is determined on a first-in-first-out basis. Inventory consists
of test kits.
1.6 FINANCIAL INSTRUMENTS
Financial instruments carried on the statement of financial performance include cash and bank balances, trade receivables and
trade payables. The particular recognition methods adopted are disclosed in the individual policy statements associated with each
item.
Trade and other receivables
Trade receivables are recognised initially at fair value and measured at amortised cost using the effective interest rate method,
less a provision for impairment. This provision is based on a review of all outstanding amounts at year end and is established when
there is objective evidence that the institute will not be able to collect all amounts due according to the original terms. The amount
of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows,
discounted at the effective interest rate. Bad debts are written off during the year in which they are identified. Subsequent recoveries
of amounts previously written off are credited against the relevant revenue stream in the statement of financial performance.
Trade and other payables
Trade payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest
method.
Cash and cash equivalents
Cash and cash equivalents are measured at fair value.
1.7 PROVISIONS
Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the
obligation can be made.
1.8 GOVERNMENT GRANTS
Government grants are recorded as deferred income when they become receivable and are then recognised as income on a
systematic basis over the period necessary to match the grants with the related costs which they are intended to compensate.
1.9 LEASE OBLIGATIONS
Leases where the company assumes substantially all the risks and rewards of ownership of assets, are classified as finance leases.
All other leases are classified as operating leases.
Finance Leases
Assets subject to finance lease agreements are capitalised at their cash cost equivalent and the corresponding liabilities are raised.
The cost of the assets is depreciated at appropriate rates on the straight-line basis over the estimated useful lives of the assets.
Lease payments are allocated between the lease finance cost and the capital repayment using the effective interest rate method.
Lease finance costs are expensed when incurred.
Operating Leases
Lease payments under operating leases are recognised in surplus or deficit on a straight line basis over the expected lease term.
2. GRANTS RECEIVED2008 2007
R R
Sport and Recreation South Africa 5 200 000 5 000 000
5 200 000 5 000 000
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The South African Institute for Drug-free SportNotes to the Financial Statements for the year ended 31 March 2008
3. PROPERTY, PLANT AND EQUIPMENTR R R R R R
2008 Office equipment EPO equipment Motor vehicles Furniture & fittings Computer equipment Total
Carrying value at the beginning of year 22 668 1 145 355 2 592 13 482 13 718 1 197 815
Cost 35 503 1 998 769 231 739 194 330 169 194 2 629 535
Accumulated depreciation (12 835) (853 414) (229 147) (180 848) (155 476) (1 431 720)
Depreciation (6 977) (399 754) (1 726) (3 976) (15 506) (427 939)
Additions 8 589 0 0 39 250 47 839
Asset write on : Cost 4 579 0 0 0 6 577 11 156
Asset write on : Accumulated depreciation (1 161) 0 0 0 (4 382) (5 543)
Disposals (4 093) 0 0 0 (1 867) (5 960)
Cost (4 150) 0 0 0 (90 294) (94 444)
Accumulated depreciation 57 0 0 0 88 427 88 484
Carrying value at the end of year 23 605 745 601 866 9 506 37 790 817 368
Cost 44 521 1 998 769 231 739 194 330 124 727 2 594 086
Accumulated depreciation (20 916) (1 253 168) (230 873) (184 824) (86 937) (1 776 718)
R R R R R R
2007 Office equipment EPO equipment Motor vehicles Furniture & fittings Computer equipment Total
Carrying value at the beginning of year 23 076 1 545 109 4 891 15 958 17 094 1 606 128
Cost 30 723 1 998 769 231 739 191 078 161 514 2 613 823
Accumulated depreciation (7 647) (453 660) (226 848) (175 120) (144 420) (1 007 695)
Depreciation (5 188) (399 754) (2 299) (5 728) (11 056) (424 025)
Additions 4 780 0 0 3 252 7 680 15 712
Carrying value at the end of year 22 668 1 145 355 2 592 13 482 13 718 1 197 815
Cost 35 503 1 998 769 231 739 194 330 169 194 2 629 535
Accumulated depreciation (12 835) (853 414) (229 147) (180 848) (155 476) (1 431 720)
Certain items of computer and office equipment have been reinstated at its full cost and related accumulated depreciation in the current year.
TEAM: SAIDS PROJECT: Annual Report 2007-2008
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The South African Institute for Drug-Free SportNotes to the Financial Statements for the year ended 31 March 2008
2008 2007
R R
4. INVENTORIES
The amounts attributable to the different categories are as follows:
Finished goods 358 924 373 945
358 924 373 945
5. TRADE AND OTHER RECEIVABLES
Receivables 502 001 475 598
Less: Allowance for doubtful debts 0 (205 155)
502 001 270 443
The carrying value of trade and other receivables approximate the fair value thereof. A provision for doubtful debt is made after
assessing each individual debtor and recovery thereof appears to be doubtful.
Trade receivables analysis
0 – 30 days 206 517 226 880
30 – 60 days 0 23 912
60 – 120 days 129 169 1 092
Over 120 days 166 315 223 714
Provision for doubtful debts 0 (205 155)
502 001 270 443
6. TRADE AND OTHER PAYABLES
Payables 963 143 748 437
Accruals 117 459 95 204
The carrying value of trade and other payables is a reasonable approximation of fair value.
Provisions
Carrying amount Additional Used during Un-used Carrying
at beginning of Provisions the year amounts amount
year reversed during at end of year
the year
R R R R R
Leave pay 4 615 0 (4 615) 0 0
Annual bonus 9 646 8 132 (9 646) 0 8 132
14 261 8 132 (14 261) 0 8 132
2008 2007
R R
7.��GENERAL RESERVE
Special Grant - Testing equipment 746 832 1 146 586
746 832 1 146 586
Special grant received in advance for purchase of laboratory testing equipment.
8. DIRECTORS EMOLUMENTS
The following emoluments were paid or credited to the directors during the year:
Executive Director : D Bradbury ( Chief Executive Officer ) 0 392 309
Executive Director : MF Galant (acting Chief Executive Officer ) 504 598 0
Non - Executive Directors - Honoraria Fees
Dr. SI Manjra ( Chairperson ) 98 296 75 664
Prof. Y Coopoo 2 880 3 600
Mr. R Hack 3 544 2 535
Mr. C Hattingh 22 596 14 090
Prof. W Hawksworth 12 240 12 922
Dr. D Constantinou 10 800 11 040
Ms. C Maphai 1 440 2 880
Ms. S Meltzer 5 760 4 881
Dr. S Motaung 1 440 2 880
Ms. N Ntanjana 2 105 0
Dr. EM Chabula-Nxiweni 1 052 0
Prof. JAO Ojewole 2 105 0
Dr. MB Goqwana 2 105 0
Dr. I Jakoet 8 806 0
Dr. H Adams 1 052 0
Dr. JRV Ramathesele 2 105 0
682 924 522 801
9. EMPLOYEE BENEFITS
Defined Contribution Plan
Included in payroll costs are contributions to a defined contribution retirement plan in respect of services in a particular period.
This is funded by both member and entity contributions, which are charged to the statement of financial performance as they are
incurred.
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The South African Institute for Drug-Free SportNotes to the Financial Statements for the year ended 31 March 2008
2008 2007
R R
The total entity contribution to such schemes in 2008 was R27 426 (2007: R40 435)
The funds cover the eligible employees, other than those employees who opt to be or are required by legislation to be members
of various Industry funds. Eligible employees that belonged to the funds, amounted to 25% (2007: 20%).
Medical Aid
The company contributes to a Medical Aid scheme for employees. The costs of these contributions are charged to the statement
of financial performance as they are incurred.
The total entity contributions to such schemes in 2008 was R12 168 (2007: R18 243)
10. SURPLUS/DEFICIT FROM OPERATIONS
Deficit from operations has been arrived at after taking into account the following:
Expenditure
Auditors remuneration 227 511 79 429
Depreciation 427 939 424 025
Directors emoluments 682 924 522 801
Net foreign exchange losses 0 28 654
Revenue
Interest received 75 007 73 365
Doping control sales 1 169 537 1 183 867
Government grants 5 200 000 5 000 000
Net foreign exchange gain 2 669 0
Profit on disposal of assets 3 192 0
11. FINANCIAL INSTRUMENTS
Financial Risk Management
Financial instruments are used to cover risks linked to the entity's activity. Each instrument is tied to an asset or liability as an
operational or financing transaction.
Foreign Exchange Risk
The entity carries out a significant portion of its sales in foreign currencies. Hedging instruments are not used to reduce the risks
arising from foreign currency fluctuations against the entity's own currency.
2008 2007
R R
Interest Rate Risk
The entity is not exposed to any interest rate risk on its financial liabilities. Short-term cash surpluses are deposited with a major
bank of a high quality credit standing. These deposits attract interest at rates linked directly to the prime overdraft rate.
Sensitivity analysis
Foreign exchange risk –USD +7% -7%
Receivables 29 646 -29 646
The monthly average exchange rate for the quarter pre and post year end was used to assess the impact of exchange rate risk
on the entity.
The 7% appreciation or depreciation in the Rand will result in an adjustment of R29 646 to surplus or deficit.
Foreign exchange risk -EUROS +11% -11%
Payables 37 935 -37 935
The monthly average exchange rate for the quarter pre and post year end was used to assess the impact of exchange rate risk
on the entity.
The 11% appreciation or depreciation in the Rand will result in an adjustment of R37 935 to surplus or deficit.
Interest rate risk +3% -3%
Bank balances 8 187 -8 187
Actual changes to the prime lending rate for the quarter pre and post year end was used to assess the impact of interest rate
risk on the entity.
A 3% fluctuation in the prime lending rate will result in an adjustment of R8 187 to surplus or deficit.
Credit Risk
The entity only deposits cash surpluses into major banks of high quality credit standing.
Trade accounts receivable comprise a widespread customer base. Ongoing credit evaluations of the financial position of the
customers is performed.
Liquidity Risk
The company has minimised its liquidity risk by monitoring forecast cash flows and ensuring that it has adequate banking facilities
and borrowing capacity.
The financial liabilities, as at the reporting date, have contractual maturity dates of less than 12 months.
TEAM: SAIDS PROJECT: Annual Report 2007-2008
Financial Statements
48
Annual Report
SAIDS2007-2008
The South African Institutefor Drug-Free Sport
Thank You toour Supporters
South African DopingControl Laboratory
Sport and RecreationSouth Africa
WADA Africa
Supersport
The South African Institute for Drug-Free SportNotes to the Financial Statements for the year ended 31 March 2008
2008 2007
R R
12. CASH FLOW NOTES12.1 Reconciliation of net deficit to cash utilised in operations
Net deficit for the year (713 548) (543 161)
Adjusted for:
Depreciation 427 939 424 025
Movement in provisions (6 129) (11 732)
Investment income (75 007) (73 365)
Finance costs 112 9
Operating deficit before working capital changes (366 633) (204 224)
Working capital changes (321) 417 593
Increase/(decrease) in accounts receivable (252 303) 1 066
Increase in accounts payable 236 961 746 842
Decrease/(increase) in inventories 15 021 (330 315)
Cash utilised in operations (366 954) 213 369
12.2 Cash and cash equivalents
Opening balance
Cash at bank 612 724 344 461
Closing balance
Cash at bank 273 173 612 724
13. FRUITLESS AND WASTEFUL EXPENDITURE
Reconciliation of fruitless and wasteful expenditure
Opening balance 0 0
Fruitless and wasteful expenditure – current year 4 078 0
Fruitless and wasteful expenditure condoned 0 0
Transfer to receivables for recovery (4078) 0
Fruitless and wasteful expenditure awaiting condonement 0 0
0 0
Incident Disciplinary steps taken/criminal proceedings
Erroneously paying a board member honorarium. None as the payment was due to an administrative oversight that was
detected immediately.