FASSET ANNUAL REPORT

26. Budget differences Notes to Statement of Comparison of Budget and Actual amounts Legislation requires that FASSET annually, in September submit a budget to the Minister for approval.

Variances of 10% and above are considered material and are explained below:

Note 26.1. Interest received Interest received was 10% above budget during the financial year due to slow spending in discretionary grants.

Note 26.2. Employee related costs Employee costs were 11% below budget in the financial year as a result of vacancies not yet filled.

Note 26.3. External audit fees External audit fees were 19% below budget due to external auditors only commencing with their audit work in July 2020 as a result of an extension granted to complete the audit on the 30 September 2020. This had an impact on the commencement of the 2020/21 audit which will be billed in the next financial period. Note 26.4. Depreciation and loss on disposal of assets Depreciation and loss on disposal of assets FASSET does not budget for depreciation and impairment of receivables as they are a non-cash item. Note 26.5. Consulting and Professional fees Consulting and Professional fees Consulting and professional fees were 13% above budget in the year due to the implementation of the ICT project. Note 26.6. Employer grant and project expenses Employer grant and project expenses was 22% lower than budget. The contributing factor to this was the late implementation of some discretionary projects.

Note 26.7. Other Income Provision for bad debts adjustment FASSET did not budget for provision for bad debts adjustment.

Note 26.8. Internal audit fees Internal audit fees Internal audit is 27% below budget due to late start of the audit as a result of the Covid-19 pandemic.

Note 26.9 Levies Levies are 13% above the budget as a result of levies being received which was above expectation.

Note 26.10 Other administration expenses Other administration expenses is 14% lower than budget. due to low spending on stakeholder communication, traveling and printing as a result of the impact on Covid-19 pandemic.

FASSET Annual Integrated Report 2020/21

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