Page 162 - DUT Annual Report 2020

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DURBAN UNIVERSITY OF TECHNOLOGY ANNUAL REPORT 2020
DURBAN UNIVERSITY OF TECHNOLOGY
NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020
24. 24.2
COMMITMENTS (continued) Lease commitments
The future minimum lease payments under leases are as follows: Not later than one year
Later than one year and not later than five years
2020 2019 R’000 R’000
25. 1
C ASH GENER A TED FROM OPER A TIONS
Reconciliation of net surplus before taxation to cash generated from operations:
Net surplus for the year before tax
Adjustments for non-cash items:
Movement in retirement benefit obligations Movement in provisions
Depreciation and amortisation
Loss on disposal of property, plant and equipment Investment income
Dividend income
Finance costs
Donation income (intangible asset) Student debt impairment
Movement in borrowings
Movement in deferred revenue (IAS 20) Prescribed debtors
Operating surplus before working capital changes
Notes
2020 R ‘000
682 268
(17 798) 8 071 77 354 3 840 (156 417) (5 368) 8 574 (11 156) 82 324 - 159 750 (3 772)
827 670
2019 R ‘000
704 797
1 212
9 014 67 394 376 (199 277) (8 856) 9 086 (6 753) 51 801 (1 235) 58 332 (2 420)
682 852
280 540 255 247
535 787
251 398 226 914
478 312
Lease commitments are in respect of lease agreements for residence properties, photocopy machines and other office equipment.
The average lease term for residential buildings is 1 to 3 years (2019: 1 to 3 years) with an average escalation clause linked to the Consumer Price Index (“CPI”), (2019: CPI).
The average lease term for equipment is 5 years (2019: 5 years) with no escalation clause.
The photocopy machines as disclosed in this note relate to assets less than R120, 000, classified as low value items. All other photocopy machines have been accounted for in note 2.2.
Student residences and lease agreements
As a result of the national lockdown, certain residences have been vacant for a period of time. Purely in effort to ameliorate the economic hardships experienced by the landlords during the Covid-19 forced lockdown and to assist with cash flow difficulties, the University entered into amended agreements with landlords, whereby the University agreed to pay the landlords reduced amounts during this period based on their variable occupancy of their premises.
11.1