REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS Opinion
We have audited the consolidated financial statements of the Rhodes University and its subsidiary (the University) set out on pages 70 to 116, which comprise the consolidated statement of financial position as at 31 December 2018, the consolidated statement of comprehensive income, consolidated statement of changes in equity, and consolidated statement of cash flows for the year then ended, as well as the notes to the consolidated financial statements, including a summary of significant
accounting policies.
In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the University as at 31 December 2018, and its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards and the requirements of the Higher Education Act of South Africa, 1997 (Act No.
101 of 1997).
Basis for opinion
We conducted our audit in accordance with the International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the consolidated financial statements section of our report.
We are independent of the University in accordance with section 290 and 291 of the Independent Regulatory Board for Auditors’ Code of professional conduct for Registered Auditors ( Revised January 2018), parts 1 and 3 of the Independent Regulatory Board for Auditors’ Code of Professional Conduct for Registered Auditors (Revised November 2018) (together the IRBA Codes) and other independence requirements applicable to performing audits of financial statements in South Africa.
We have fulfilled our other ethical responsibilities, as applicable in accordance with the IRBA Codes and in accordance with other ethical requirements applicable to performing audits in South Africa.
The IRBA Codes are consistent with the corresponding sections of the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants and the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) respectively.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities of Council for the financial statements
The council is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with International Financial Reporting Standards and the requirements of the Higher Education Act of South Africa, 1997 (Act No. 101 of 1997) and for such internal control as the council determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
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the University or to cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial statements Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial statements is included in Annexure A to the auditor’s report.
REPORT ON THE AUDIT OF THE ANNUAL PERFORMANCE REPORT Introduction and scope
In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and the general notice issued in terms thereof we have a responsibility to report material findings on the reported performance information against predetermined objectives for selected objectives presented in the annual report. We performed procedures to identify findings but not to gather evidence to express assurance.
Our procedures address the reported performance information, which must be based on the approved performance planning documents of the University. We have not evaluated the completeness and appropriateness of the performance indicators included in the planning documents. Our procedures also did not extend to any disclosures or assertions relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information. Accordingly, our findings do not extend to these matters.
We evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework, as defined in the general notice, for the following selected objectives presented in the annual report of the
University for the year ended 31 December 2018:
Objectives Pages in the annual
report
Headcount totals 5
First-time entering undergraduates 5
Headcount enrolments total UG 5
Headcount enrolments total PG 5
Graduates UG 5
Graduates PG 5
Headcount of permanent instructional/research professional staff 6 Ratio of FTE students to FTE instructional/research staff 6
Total research output units 6
Publication units per I/R staff 6
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were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.
We did not identify any material findings on the usefulness and reliability of the reported performance information for the above-mentioned objectives.
Achievement of planned targets
Refer to the annual report on pages 5 to 6 for information on the achievement of the planned targets for the year and explanations provided for the under/over achievement of a number of targets.
REPORT ON AUDIT OF COMPLIANCE WITH LEGISLATION Introduction and scope
In accordance with the PAA and the general notice issued in terms thereof we have a responsibility to report material findings on the compliance of the University with specific matters in key legislation. We performed procedures to identify findings but not to gather evidence to express assurance.
We did not identify any instances of material non-compliance with specific matters in key legislation, as set out in the general notice issued in terms of the PAA.
OTHER INFORMATION
The council is responsible for the other information. The other information comprises the information included in the Rhodes University Annual Report 2018. Other information does not include the consolidated financial statements, the auditor’s report thereon and those selected objectives presented in the annual report that have been specifically reported on in the auditor’s report.
Our opinion on the consolidated financial statements and findings on the reported performance information and compliance with legislation do not cover the other information and we do not express an audit opinion or any form of assurance conclusion thereon.
In connection with our audit, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements and the selected objectives presented in the annual performance report, or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, on the other information that we have obtained prior to the date of this auditor’s report, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
INTERNAL CONTROL DEFICIENCIES
We considered internal control relevant to our audit of the consolidated financial statements, reported performance information and compliance with applicable legislation; however, our objective was not to express any form of assurance thereon. We did not identify any significant deficiencies in internal control.
OTHER REPORTS
We draw attention to the following engagements conducted by various parties that had, or could have, an impact on the matters reported in the University’s consolidated financial statements, reported performance information, compliance with applicable legislation and other related matters. These reports did not form part of our opinion on the consolidated financial statements or our findings on the reported performance information or compliance with legislation.