HDA Annual Report

ANNUAL REPORT 2023/24

Notes to the Annual Financial Statements

Restated 2023

Figures in R’000

2024

17. Operating expenses (continued)

Analytical Review

Impairment The provision of R69.2m is mainly driven by impairment made for Braamfontein Eskom building and deficit projects expenditures incurred in the previous financial periods where funders and projects principals have not accepted nor confirmed their liabilities thus indicating that the recoverability of the amount is questionable. Computer expenses An increase is due to software licences within a licence duration of less than one year which are not capitalised. Consultants The expenditure relates to consultancy services on funds budgeted from the Agency’s operational grant. The reduction is mainly driven by implementation of cost contaiment measures. Repairs - office refurbishment The expenditure relates to unexpected repairs and maintenance requirements (excluding assets), incurred in the ordinary course of business within Head office and Regional offices. In the prior year the expenditure was high due to dismantling and reinstatement of the old HDA Killarney office. The reduction in the current year is as result of fewer repairs & maintenance requirements. Staff recruitment This relates to placement fees paid to the recruitment agencies in case of a successful referral. A reduction is due to insourcing some of the recruitment services.

Other office expenses The reduction is due to decrease in litigation cases against the Agency .

Temporary staff The reduction is due to insourcing appointment of temporary staff.

18. Land and related costs

Insurance

13

32

Maintenance costs

4 687 4 775 8 224 2 081

3 557 6 935 2 684 1 124

Conveyancing and valuation costs

Security services

Development planning and feasibility studies

19 780

14 332

The expenditure relates to security costs for properties owned by the Agency and those held on behalf of the provinces. The increase is as a result of security services paid for the Braamfontein and Kimberley buildings.

137