CGE ANNUAL REPORT

2022/23 ANNUAL REPORT

Financial Statements for the year ended 31 March 2023

Notes to the Financial Statements for the year ended 31 March 2023

Figures in Rand

2023

2022

22.

Budget differences (continued)

In addition to the above, the primary contributor to the reported surplus was an under-expenditure of R11 230 109 on personnel costs due to positions that were vacant in the year under review. The main contributors were four (4) outgoing Commissioners positions whose term ended 31 October 2022 and filling of five (5) new Commissioners which occurred in the last month of the financial year end, 01 March 2023. Furthermore the surplus contributor arose from the Head of Legal Department, Head of Parliamentary Liaison Unit, Chief Financial Officer, Head of Public Education and Information, Head of Research and a middle manager position that were vacant in the first quarter of the financial year. Moreover, there has also been a number of vacant critical staff positions within the CGE which contributed to the recorded under-utilisation of the annual budget allocation on personnel cost of R70 982 748. General expenses also reflected an over-spending of R3 739 264 which was due to increase in spending from the second quarter expenditure as the lock down restrictions being uplifted as local of amounting to R5 857 342 as both local and international traveling resumed. A further contributor was due to usage of conferences and seminars amounting R4 473 027 due to upliftment of the lockdown restrictions. As compared to the previous year, the Commission saw an increase in international travels which recorded R809 027 in the year of 2022/23. An increase in legal fees of R5 592 151 as compared to the previous year 2021/22 of R3 818 229 contributed to the overspending of general expenses. The depreciation and amortisation expense of R1 582 705 had a counter-effect to the above surplus since this provision was not budgeted for when the 2022/2023 budget was compiled. Staff debtors of R34 883 were assessed as not recoverable, in the previous financial year an amount of R20 468 was provisioned and in the current year 2022/23, the Commission was unable to recover the staff debtors amounting to R14 415 which was subsequently written off . Penalty imposed by SARS were recovered as remittance amounting to R13 668, as at 31 March 2023 the SARS-remmitance was not received from SARS and subsequently a receivable was raised. Finance Costs relates to the implicit interest incurred on the finance leases for cellphones and multifunctional printing equipment for an amount R21 212, furthermore an interest of R1 832 was imposed for PAYE underpayment to SARS. In the current year of review, assets disposal amounting to R14 310 which related to office equipment and leased assets were items that further accounted for the variance as the disposal was not budgeted for.

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