Limpopo Gambling Board Annual Report

LIMPOPO GAMBLING BOARD Annual Financial Statements for the year ended 31 March 2022 Notes to the Annual Financial Statements

2022

2021

37. Budget explanations Material differences between budget and actual amounts The budget covers the full financial year to 31 March 2022 . Material differences are explained below. 37.1 Operating income

Although the budget for operating income had to be adjusted downwards to cater for the effect of the pandemic on the collection, operating income performed fairly well in comparison to the adjusted budget. This was mainly due to the reopening and the easing of the lockdown restictions which led to the operators' operations returing to somewhat a full capacity. 37.2 Interest received The interest earned by the entity comes from a call account that the entity maintains. Levies that are collected are kept in the call account before they are transferred to LEDET. 37.3 Other operating revenue There was over performance in the collection of levies for the year under review, even in excess of the upward budget adjustment. This was mainly due to increased activity in the gaming industry and easing of lock down restrictions. 37.4 Annual licence fees Collection of annual licence fees had under performed for the year under review, even after a revision downwards of the expected income mainly due to the effect of the lockdown restrictions on the operators as well as number of employees for operators decreasing. 37.5 Personnel Included under employee costs is leave provision figure amounting to R 1429 667. This figure is included as the accounting policy of the entity is to prepare and report on its budget statement on an accrual basis. Spending was not as expected as salary adjustments for 2021 were not effected. Salary adjustments for the current year were not in line with COE guidelines as the rates that were applied were that of the public sector wage agreement. 37.6 Board member expenses Board expenses has slightly over performed when compared to the budgeted amount. There were more board meetings than anticipated. 37.7 Depreciation and amortisation Depreciation and amortisation has increased ahead of the budget. 37.8 Operating Expenses Operating expenses for the current year have reduced in comparison to the prior year as a result of a reduction of the allocated grant and suspension of core services. 37.9 Property plant and equipment The allocation for the current year was not used as a result of the halt of purchacing items in excess of R 30 000 as issued by the National Treasury.

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