HDA Annual Report

ANNUAL REPORT 2023/24

Notes to the Annual Financial Statements

Restated 2023

Figures in R’000

2024

Employee costs The underspending is mainly driven by the delay in filling up vacant positions. Staff Recruitment This relates to placement fees paid to the recruitment agencies in case of a successful referral. The underspending is as a result of insource some of the recruitment services. Temporary Staff The expenditure incurred relates to temporary employees and interns salaries for the Head office and Regions. The saving is mainly driven by insourcing appointment of temporary staff effective from 2nd quarter of the financial year, resulting to a saving on monthly placement fees hence the underspending. Training & Staff Development The underspending is mainly driven by the delays in finalising training plans for the employees. Travel and Accommodation The expenditure incurred relate to travelling costs to projects site visits and other organisational travel. Saving is mainly driven by cost containment initiatives in place. Assets Purchases This expenditure relates to acquisition of computer equipment, office equipment, hardware costs, furniture & fitting and software. Finalisation of SCM processes to procure assets took place in the last quarter which resulted in saving / underspending.

29. Budget Comparison Statement (continued)

Legal Fees Expenditure incurred for the year was as a result of litigation costs and the consequence management. Spending is in line with the activities happened during the financial period. Less than expected cases were finalised during the year. Office Rental The expenditure relates to office rental, for the head office and regional offices. Office lease for the Western Cape region was not renewed during the year. Limpopo office lease was renewed in the second quarter of the financial year. The budget had assumed that rental relating to these offices would be incurred from the beginning of the financial year, hence underspending. Other Office expenses The overspending is as a result of a court award made against the Agency in relation to the Limpopo project. Penalty This expenditure is not appreciated as it is considered fruitless. The expenditure incurred relates to late penalty charges on the following: Rental payments for the KZN and Free State offices Payments made later than the first business day of each calendar month. Printing & Stationery The expenditure incurred to date relates to a bulk of stationery purchased by head office and regional offices. The organisation has put a control in place to ensure that stationery is kept at a minimal resulting in saving/ underspending. Repairs & Maintenance The expenditure relates to unexpected repairs and maintenance requirements across all HDA offices on all office equipment (excluding leased assets). • • SARS e-filling (PAYE) late submission.

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