ECIC AR 2024 9TH

E

D

H

S

I

L I

N

B

2

0

A

0

T

S

1

E

Integrated Report 2024

E X P O R T C R E

L T D

O C

A S

C

R I

D I

F

T

A

I

N

H

S

T

U

U

R

O

A

S

N

F

C

O

E

N

C

O

O

I

R

T

P

A

O

R

Operating expenditure management Management continues to run the Corporation in a cost-efficient manner, as the cost to income ratio stood at 21% against the targeted ceiling of 32%. Irregular, fruitless and wasteful expenditure Disclosure as required by section 55 of PFMA Fruitless and wasteful expenditure Confirmed incidents

2024 R’000

2023 R’000

Incidents under assessment Current year expenditure

340

-

340 - The expenditure relates to costs incurred after the auto renuwal of the contract. The letter of cancellation was not sent within the period as stipulated in the contract. 2024 R’000 2023 R’000

2024 R’000

2023 R’000

Opening balance

1 303

-

Total fruitless and wastel expenditure not yet concluded Under assessment

Adjustment of the opening balance

(288)

-

Additions – relating to previous years Additions – relating to current year

340

-

-

679

Under determination

2

-

Under investigation

4

624

342

-

Recovered

(2)

-

Closing balance

1 017

1 303

Irregular expenditure There was no Irregular Expenditure incurred during the 2023 and 2024 financial years. Procurement through other means and variations Procurement which done through other means includes: a) limited bidding b) written price quotations are above R1 million as stated in the procurement policy c) procurement that occurs in emergency situations and urgent cases Variations and expansions of contracts means: a) expand a contract by increasing the scope of work; or b) vary a contract by changing the scope of work.

Subsequent to year end, the entire balance of fruitless and wasteful expenditure incurred in the previous years was written off and disciplinary steps were taken against the relevant employees i.e. written warnings issued as a consequence of the fruitless and wasteful expenditure. No criminal steps were taken as this did not involve criminal activities.

YOUR EXPORT RISK PARTNER

102