RTIA Annual Report E-Book

Road Traffic Infringement Agency Annual Financial Statements for the year ended 31 March 2024 __________________________________________________________________________________________________________________________________________________________ Statement of Comparison of Budget and Actual Amounts Budget on Accrual Basis Figures in Rand Approved Adjustments Final Budget Actual amounts Difference Reference budget on comparable between final basis budget and actual The approved original budget was submitted to the Executive Authority in line with the Public Finance Management Act, 1999, Chapter 6 Public Entities Part 2, Par 53. The budget was approved by the Accounting Authority. N1 - The revenue generated from collected infringement fees has fallen by 69% below the anticipated target. This shortfall can be attributed to a reduction in the number of issued notices by the relevant Issuing Authorities responsible for enforcing the Administrative Adjudication of Road Traffic Offences (AARTO) regulations. Additionally, the decline in the collection is a result of serving notices that were outside the legislated time frames. The allocated grant with conditions is related to the AARTO rolloutring-fenced funds of R143 million for the year that ended. A sum of R71 million was requested and received. The overall budget spending was not achieved for all planned projects, especially the AARTO rollout program. This resulted invariances in most expenditure line items for the year under review: N2 - Employment-associated costs were 43% behind budget. N3 - Underspending of admin expenses by 66% due to non-AARTO rollout. N4 - Advertising and marketing was not separately allocated a budget. N5 - Consultants underspent due to none rollout of AARTO. N6 - Legal costs is 31% behind budget. N7 - Operating leases is 15% below budget set. N8 - The expenditure of AARTO notices issued exceeded the budget allocation, this was augmented through savings made from consultants and other expenses. N9 - Only 4% of the budget was spent on the AARTO rollout expenditure the remaining balance was committed at year end via purchase order. N10 - Non-cash items included in the surplus. N11 - Surplus retention approved for the 2022-23 financial year

119

Road Traffic Infringement Agency • Annual Report 2023/24