HDA Annual Report

ANNUAL REPORT 2023/24

Notes to the Annual Financial Statements

Restated 2023

Figures in R’000

2024

Interest income Interest income came in higher than expected, this is as a result high levels of cash held during the year as a result of from slow spending of the operational grant received in the current year. Other income Overspending is as a result of additional unanticipated tenants,The renting out of properties is an ancillary activity for the sole purpose of protecting the activities. Catering & Conferences This comprises catering for meetings, office consumable and conferences venue bookings. The underspending is due to the cost containment initiatives that were put in place. Advertising & Marketing The budget had assumed that all vacant positions would be filled by quarter three during the financial year, things did not unfold as expected hence the saving. In addition to this, there was unspent budget relating to event planning and marketing material due SCM processes that were only finalised during the last quarter of the financial year. Agency support - outsourced The expenditure relates to the travel booking fee paid to the travel agent, Sage Accounting support services, payroll outsourced services and media editorial space management services. Underspending is mainly driven by delay in procuring services in relation to the media editorial space management. Assets Written off The underspending is mainly driven by purchases of assets below R5 000. There was less than expected requirements to replace such assets. Expenditure Analysis

29. Budget Comparison Statement (continued)

• At mid-term, the Agency had received R3,3m originating from management fees earned on the chemical toilets & honey suckers project. The additional inflows in other income had a domino effect on expenses, the following expenses were increased accordingly: Legal fees, audit fees, and property management costs for rates, taxes, maintenance & security for properties acquired during the year.

Changes between the Final budget and Actual

Revenue Analysis

Province support conditional grant An increase in province supported conditional between approved budget and the adjusted budget is mainly driven by KwaZulu-Natal floods and GADA (Gauteng). These provinces increased their budget due to the following: GADA has increased its payroll budget to capacitate the unit. The revenue is recognised in the statement of financial performance through the matching of direct expenditure incurred to the extent where there are funds available/received. The underspending is mainly driven by delays in receiving funds for the operational projects allocated for Western Cape and delays capacitating personnel for GADA. Project Management fees - To be updated Overcollection is mainly driven by Eastern cape projects and Chemical toilets. Change in business process from tranche payment to value creation has also contributed to the increase. • • KwaZulu-Natal floods project

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