BANKSETA ANNUAL REPORT 2023

ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2023

29. NOTES TO STATEMENT OF COMPARISION OF BUDGET AND ACTUAL AMOUNTS (continued) 29.6 Project and discretionary grant expenditure (continued) 29.6.1 Earlier start to discretionary funding windows leading to the BANKSETA starting the 2022/23 financial year with a high commitments balance. BANKSETA therefore had a strong pipeline of projects being implemented throughout the year. 29.6.2Quicker and streamlined DG funding windows processes including clearer criteria leading to fewer appeals and bottlenecks. BANKSETA also improved the processes to monitor unallocated funds and to increase allocations where the BANKSETA had additional funds. 29.6.3Better project monitoring and improved processes. These included stricter monitoring of project commencements and enrolments and provision of the evidence with two months of the contract start date.

29.7 Administration expenses Administration expenditure is limited to 10.5% of levies received.

BANKSETA did not exceed this level in 2022/23 financial year.

Administration expenditure is 11% below budget and 20% above prior year.

The larger variances for 2022/23 year are as follows:

- Employment costs 5% below budget

The BANKSETA filled a number of vacancies compared to last year. However there were still 3 vacancies throughout the year. The prior year, 2021/22 provision was under estimated. The difference between the final award and the provision was taken to 2022/23 expenditure. The current year 2022/23 provision was raised due to the vacancies filled. The large difference between prior year and current year is due to the effect of the 2022/23 amount including a amount from 2012/22 under provision. One major planned activity only began in March 2023 as the first procurement exercise was not successful and had to be repeated. The cost will therefore be incurred in 2023/24 year. The BANKSETA did not undertake all the planned activities due to logistical reasons. The awarded contracts for two of the activities were below what was anticipated. The organisation design study was not completed in the year as planned due to the need for further consultation. It will be completed in 2023/24 year. BANKSETA had made provision for other ad hoc work which was then not required. BANKSETA delayed the start of MIS contract till last quarter and delivered the work in-house. Several procurement transactions received no acceptable bids meeting the minimum requirements and had to be re-advertised. The work will therefore only start in 2023/24 year.

- Employee

11% above budget

performance bonus

- Audit fees Internal

35% below budget 28% below budget

- Communications and marketing costs

- Consultation costs 76% below budget

- Outsourced services 52% below budget

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BANKSETA ANNUAL REPORT 2022/23