Trade and other receivables past due but not impaired
Trade and other receivables which are past due are not considered to be impaired. At 31 March 2023, R87,145 (2022: R441,391) were past due but not impaired. These relate to a number of independent customers to whom there is no recent history to default. The ageing of amounts past due but not impaired is as follows:

Reconciliation of property, plant and equipment – 2022

Durban – Portion 1 of Erf 1736, Wentworth with office building thereon: the property was revalued by Roper Associates, an independent registered valuer as at 2 February 2022. Valuations were made in accordance with the investment approach method using the basis of recent market transactions, rentals of similar properties in the area and an insurance valuation of the property.

Reconciliation of property, plant and equipment – 2022

All permanent employees appointed prior to 1997 may become entitled to a long service award upon completion of twenty, thirty or forty years service.

The entity provided for one potential claim from a customer in 2023. The entity provided for three potential claims from customers in 2022.

The PPECB rendered services of R2,603,415 (2022: R2,719,036) to companies on which some of the members of the Board serve. The outstanding debtors balances of these companies and entities totalled to R259,369 (2022: R382,304).

Related party balances

Remuneration of Management
Management class: Executive Management 2023

2023

The AETP and Internal Development services (2022: R1,084,661) was reclassified from Revenue to Other Income. The Transformation and Development services (2022: R1,813,906) was reclassified from Revenue to Other Income.

The members of the Board acknowledge their responsibility for establishing and communicating appropriate risk and control policies and ensuring adequate risk management processes are in place. The Audit Committee assists the members of the Board in discharging their risk management obligations.

The principal objectives of risk management are to:

• Review the Board’s risk philosophy, strategy, policies and processes recommended by senior management;
• Review and assess the integrity of the process and procedures for identifying, assessing, recording and monitoring of risk;
• Review the adequacy and effectiveness of the Board’s risk management function and its implementation by management; and
• Ensure that material risks have been identified, assessed and receive attention.

The Board’s risk management processes, of which the systems of internal, financial and operating controls are an integral part, are designed
to control and monitor risk throughout the Board. For effectiveness, these processes rely on regular communication, sound judgment and
thorough knowledge of statutory and operational activities. Management is tasked with integrating the management risk into the day-to-day
activities of the Board.

Liquidity risk
The entity’s risk to liquidity is the risk that funds are not available to cover future commitments.

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

The entity manages the liquidity risk through an ongoing review of future commitments by monitoring cash flows, budgets and management accounts. Included in the general reserve is a provision for expense risk (an increase in the level of expenditure, without a commensurate increase in income).

The contractual cash flows due as at 31 March 2023 to trade and other payables is R48,712,042 (2022: R59,800,192). Trade payables will be settled within one year or less. Operating leases within one year is R6,300,551 (2022: R889,312), operating leases between two and five years is R4,781,440 (2022: R5,885,046) and will be settled within agreed payment periods. Amounts noted are undiscounted cash flows.

Credit risk
Credit risk arises from cash and equivalents and deposits with banks and financial institutions, as well as credit exposure to customers,
including outstanding receivables and committed transactions.

Measures taken by the Board to limit credit risk to acceptable levels include, inter alia, an assessment of the credit quality of the customer, by taking into account their financial position; past experience and other factors, the application of standard credit acceptance procedures to assess potential clients, daily monitoring of collectable balance at both regional and head office level and the suspension of services to accounts which exceed the Board’s payment terms. The table below shows the balances of the financial institutions in which the Board held deposits at statement of financial position date:

Cash flow and fair value interest rate risk
The Board’s interest rate risk arises from investments held to maturity as well as from cash and cash equivalents. The Board’s policy is to maintain its investments across a range of high-quality financial institutions. Interest rate exposure and investment allocations are evaluated by management on a regular basis. This risk is managed by maintaining an appropriate mix of investments with registered financial institutions. Interest-bearing investments are held with reputable financial institutions in order to minimise exposure.

Capital risk management
Capital is regarded as total reserves which is a result of accumulated surpluses. The Board strives to maintain a sufficient reserve as to sustain its statutory obligations. The level of the reserves is dependent on the approval of the Minister of the DALRRD.

Categories of financial instruments

National Treasury Regulation 16 A6.3(c) requires tenders to be advertised for a minimum of 21 days. The AETP learnership programme tender was advertised for 18 days. YTD spend was R352,331.

In respect of fruitless and wasteful expenditure, a permanent employee resigned and continued to receive a salary amounting to R178,872.

Funeral benefits were paid on behalf of the service provider to three employees amounting to R67,500. These funds are irrecoverable. ICT equipment (tablets, laptops and monitors) amounting to a book value of R550,032 could not be physically accounted for and were reported as missing. These assets were written off.

Identification of segments
The segment information report reflects the reportable segments regularly provided, reviewed and used by the Board and Executive Management to make strategic decisions and assess performance of the segments. The Executive assesses the performance of the operating segments based on a measure of contribution consistent with that of the financial statements.

The operations in each reportable segment are: Statutory Services and Food Safety Services, which provide mostly regulatory services at a fee to the perishable product industry. Statutory Services is responsible for delivering integrated inspection and cold chain services on perishable products being exported. Food Safety Services refers to the assurance given that food will not cause harm to the consumer when consumed. The Transformation and Development Services programme is aimed at building capacity through the development of internal and external skills. Corporate Services ensures coherence among the respective programmes within the PPECB by providing support, direction, leadership and promoting the services of the PPECB.

Segment of surplus