CIPC Annual Report V1

Companies and Intellectual Property Commission Annual Financial Statements for the year ended 31 March 2021 Statement of Comparison of Budget and Actual Amounts Budget on Cash Basis Approved budget Adjustments Final Budget Actual amounts on comparable basis

Difference between final budget and actual

Reference

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Budget narrations are provided for variances above 8% and R1 million

N1 - Revenue from non exchange transactions The variance of R33,9 mil, translated to 8.9% above budget relates to greater than expected annual return filings occuring during the year. N2 - Other income The variance of R5,6 million, translated to 168% over the budgeted income relates mainly to the prescription of customer deposits balances for which no transactions have been processed against, and are older than three years. The CIPC budgeted conservatively for such income due to the uncertainty of the amount which will be unutilised by customers during each financial year. N3 - Interest income The variance of R23,5 million, translated to 49.8% below budget is primarily due to the decrease in the interest rate from an average of 6.8% in the prior year to 3.8% in the current year. The budgeted interest was based on the prior year average interest rate. N4 - Employee costs The variance of R32,3 mil, translated to 8% below the budgeted expenditure is due to cost of living adjustments not being implemented across certain levels at the CIPC, as well as conservative percentages being applied to the performance bonus payments resulting in the full provision not being utilised. N5 - Other administrative expenditure The variance of R42,5 million, translated to 81.5% savings in the budgeted expenditure is attributed to the impact of the Covid pandemic on expenditure items within this category, and relates mainly to the following: *Underspending of approximately R16 million in budgeted advertising expenditure as procurement relating to the campaign was not finalised. *Savings of approximately R6 million in the budgeted travel expenditure due to planned travel not undertaken as a result of the lockdown. *Savings of approximately R6,2 million in the budgeted conferences, venues and facilities expense due to events not occurring. Where possible, events occurred via a virtual platform *Savings of approximately R6 million in budgeted legal fees as the Department of Justice did performed limited legal services. N6 - Depreciation and amortisation The variance of R4 million, translated to 16.4% below budget, is primarily due to increasing the useful life of assets at year end. Many of these assets were due to be replaced during the financial but were not due to the impact of the Covid pandemic. N7 - Property, plant and equipment The variance of R9,8 million translated to 50% below budgeted capital expenditure is attributed to the planned procurement and implementation of a new telephony system not being finalised during the year.

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COMPANIES AND INTELLECTUAL PROPERTY COMMISSION I Annual Report 2020/21

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