HDA Annual Report

ANNUAL REPORT 2023/24 Notes to the Annual Financial Statements

Restated 2023

Figures in R’000

2024

Consultants - Technical This expenditure relates to consultancy services on funds budgeted from MTOP (medium-term operational plan). The underspending is mainly driven by the projects which could not take place as a result of funds unavailable to facilitate the projects. Operational grant consultants This expenditure relates to consultancy services on funds budgeted from the Agency’s operational grant. The underspending is mainly driven by implementation of cost containment measures. Deficit on disposal of PPE This figure is highly dependent on circumstances and incidents that trigger the disposals. Loss of assets occurred as a result of physical damage, a robbery, etc. Depreciation and amortisation The is a non-cash item, representing the reduction in the value of assets over time. The high levels of depreciation emanate from the buildings and computer equipment category. Finance Costs and Leasing charges The expenditure relates finance costs on leased assets (photocopiers) in line with the amortisation of the lease liability, copy printing, machine toners and PABX land line system. This is depended on the usage and represents spending for the year. Land & Related Costs The expenditure relates to security, valuations, property rates, insurance & maintenance costs for properties owned by the Agency and those held on behalf of the provinces. The overspending is as a result of maintenance, rates, security and taxes paid for the properties managed and owned by the Agency.

29. Budget Comparison Statement (continued)

Auditor Remuneration This mainly comprises fees in relation to external audit services. The overspending is as a result of provision made. Bad Debts 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. Bank Charges Bank charges represent service fees charged by the banks. The spending is in line with the bank transactions volume by the Agency year to date. Board Costs This expenditure relates to the remuneration of the Board and its committees. Spending to date is for meetings that took place during the financial year (e.g. Social Ethics committee, Remco, ARC, Minister‘s budget vote and Portfolio committee). The underspending is mainly driven by fewer special meetings held for each of the Committees, and there was a lower number of Ministerial engagements that the Board was expected to attend during the financial year. Communications The expenditure comprises land line usage and courier services. The spending is in line with the usage to date. Computer Services This expenditure comprises internet services (Firewall, mime cast, hosting of server routers and 3G MTN,Telkom & Vodacom). An increase is due to software licences within a licence duration of less than one year which are not capitalised.

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