CCMA ANNUAL REPORT

Commission for Conciliation, Mediation and Arbitration Annual Report 2022/23

Financial Statement for the year ended 31 March 2023

Notes to the Financial Statements

2022 Restated*

Figures in Rand

Note(s)

2023

34. Budget differences Revenue from exchange transactions Services rendered was above the projected income by R973 thousand (20.2%), due to discretionary services offered being more than what was planned for by the CCMA to the users. Other income collected for R592 thousand (100%) was not budgeted for due to the unpredictability of the nature of the income. The income includes insurance, bursary recoveries, staff debts etc. Interest received on investment was above the projected income by R8.2 million (162.2%) due to higher than projected interest rate received from Corporation for Public Revenue from non exchange transactions Government grant and subsidies, were received in line with the signed drawdown agreement with the Department of Employment and Labour for the 2022/23 financial year. Conscientious Objector Funding was below the projected budget by R210 thousand (14.0%), due to transfers from the Department of Labour and Employment not received as planned. National Treasury granted approval to CCMA in terms of Section 53(3) of the PFMA and paragraph 8.1 of National Treasury Instruction 12 of 2020/21 to retain the cash surplus of R30.5 million at the end of the 2021/22 financial year. Donations received of R328 thousand (100%) results from the service in kind received from the stakeholders for activities such as venues, which was not budgeted for during the financial year. National Treasury approved R12.0 million in surplus funds from the NEDLAC to be transferred to the CCMA during the 2022/23 financial year in accordance with section 53(3) of the PFMA. The funds were received as per the approval. Expenditure The overall expenditure for the period ending 31 March 2023 was R1 073 billion (97.5%) of the annual approved budget. Employee related costs were above the projected budget by R36 thousand (0.0%).The slight variance results from once off salary incentives for staff during the financial year. Administration expenditure was below the budgeted amount by R14.8 million (8.0%).The saving results from projects such as JAVS maintenance, BUSA web tool, Helpdesk solution, CMS enhancements and Compliance Management Tool Software which were budgeted for but not utilised as anticipated, as these projects were not awarded. Further, the employee wellness programme and employee relation activities as well as admin variable expenditure also contributed to the saving as the service are consumed as and when required. Depreciation and amortisation expenses was below the projected budget by R6.3 million (18.0%). The variance results from assets which were budgeted for but not procured as anticipated. Finance cost was below the budgeted amount by R2.3 million (97.1%).The variance results from of non-responsive bids on procurement of laptops through the lease option. Bargaining Councils subsidies were below the budgeted amount by R1.6 million (24.6%). The variance results from fewer claims received from the Councils on the awards made.

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