LIMPOPO GAMBLING BOARD A/REPORT 2022/23

machines will be destroyed during the 2023/24 Financial Year. One hundred and twenty-seven (127) computers which were used in the illegal online gambling activities were confiscated during the year. The Law Enforcement Business Unit worked with the South African Police Service in conducting raids on illegal gambling operations. General Financial Review of the Public Entity The operations of the Entity were funded through a grant from the Department of Economic Development, Environment and Tourism. The Entity’s allocation in the year under review increased from R75 million to R82 million, which indicated an increase of R7 million. The increase in the budget was attributed to the additional funding that was allocated to the Entity during the budget adjustment after an approval was granted for the additional allocation. The Entity had recovered from the effects of the pandemic with regards to revenue collection. For the year under review, the collection of revenue surpassed the pre-covid figures. The collection for the current financial year (R196 million) was higher than that of the previous financial year (R130 million). Interest received for the year was R1 million. The Entity had to increase its anticipated collection in relation to revenue to cater for the upward collection trend for the current financial year. The Entity’s total expenditure amounted to R76 million which accounted for 93% of the adjusted grant of R82 million. The Entity spent 98% of its employee cost during the financial year. The improvement in the spending came after a downward adjustment to the budgeted figure for employee cost during the budget adjustments as there were delays in finalising recruitment processes for some of the positions that the Entity had anticipated to complete before the financial year end. Additionally, there were delays with some of the procurement activities within the Supply Chain Management Unit. Spending Trends of the Public Entity The Entity was able to spend 93% of its 2022/23 budget. The spending in the current year was slightly lower than originally estimated. The Entity had budget challenges in the beginning of the financial year and therefore applied for R9 million additional funding. The Entity was however granted R7 million additional funding during the budget adjustment process in November 2022. Following the Constitutional Court judgement in Minister of Finance v Afribusiness NCP which set aside the Preferential Procurement Regulations published under the Preferential Procurement Policy Framework Act, all government institutions in the country had to draft their own procurement policy containing prequalification criteria which should be applied during the procurement processes. The Limpopo Gambling Board was affected by this and had to draft its own Preferential Procurement Policy which was approved by the Board in the 4th quarter of the year under review.

The Entity, however, has a positive outlook on the financial year ahead and is positive that spending patterns will improve.

Capacity Constraints and Challenges facing the Public Entity The Entity had a challenge of human resource capacity during the year but managed to fill some of the posts at the middle management and operational level. Some of the vacant posts will be filled during the 2023/24 Financial Year as the recruitment process was finalised at the end of the financial year due to delays in vetting the potential candidates.

LIMPOPO GAMBLING BOARD 2022/23

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