CCMA ANNUAL REPORT

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

5. DIRECTOR’S OVERVIEW

R12 million for collaboration with the CCMA on projects to: • Proactively address individual and collective disputes that arose in the workplace because of the COVID-19 Pandemic including in respect of unfair dismissals, mandatory vaccinations as well as retrenchments arising out of the subsequent economic downturn. • Enforce awards arising out of the implementation of the National Minimum Wage which have been delayed because of the COVID-19 Pandemic and lockdown. The CCMA maintained its going concern status through sound financial management, accounting systems and practices over the last fiscal year. The organisation continues to be in a financially healthy position with cash and cash equivalents being R140.6 million, which is equivalent to a 1.3:1 cash cover ratio and a liquidity ratio of 1.4:1 as at 31 March 2023. The net asset value is reported as R79.8 million, as at 31 March 2023. 5.2. SPENDING TRENDS OF THE PUBLIC ENTITY The total expenditure of the CCMA increased by nine-point six percent (9.6%) compared to the previous financial year. Several factors have contributed to the increase in expenditure. For the financial year, an increase was seen on utilisation of part-time Commissioners as a result of the increase in allocation from NEDLAC, as well as inflation adjustments on certain goods and services. Furthermore, the case disbursement increased by 27.3% in expenditure, from R181.3 million (2022) to R230.7 million (2023). An increase by four-point two percent (4.2%) on the compensation of employees from the previous year was realised, due to once off salary incentives to employees. Goods and Services increased by nine-point four percent (9.4%), the main contributing factor being variable administration costs as the services are consumed as and when required.

Adv. Cameron Sello Morajane CCMA Director

5.1. G ENERAL FINANCIAL REVIEW OF THE PUBLIC ENTITY The CCMA receives funding from the fiscus through grant transfers from the DEL. An increase of five-point two percent (5.2%) on the government grant compared to the previous year brought the total to R1.046 billion. The interest received from investment income amounted to R13.2 million. An income of R5.7 million was earned from services rendered. During the mid-term budget cycle, an upward adjustment of approximately three-point five percent (3.5%) was made to the budget, this includes the additional grant allocation and approved surplus rollover from NEDLAC. This adjustment was to ensure the CCMA spends within its budget to remain a going concern. The National Treasury further considered and approved the cash surplus request that was allocated through NEDLAC in the previous financial year as follows:

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