SACAA Annual Report 2022_23

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Annual Financial Statements for the year ended 31 March 2023

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Notes to the Annual Financial Statements

31. Budget variances Material differences between budget and actual amounts The material variances between actual and budgeted above 5% or in excess of R2 million can be explained as follows: Interest revenue Interest revenue of R24 045 477 is R3 869 845 higher than budget of R20 175 632 due to increased bank balances. Reserve levels increased as revenue levels increased, whilst still maintaining cost containment. Other revenue Other revenue of R9 101 836 is R491 508 lower than budget due to lower insurance claim proceeds (sundry income) than the previous financial year. Passenger safety charge Passenger safety charge of R455 811 640 is R15 171 640 higher than budget of R440 640 000 due to the passenger numbers for the year being higher than expected, despite the various waves of COVID-19. Actual passenger numbers for the year were 16 550 895 compared to the budget of 16 000 000. Fuel Levy Fuel levy of R33 335 017 is R2 263 534 higher than the budget of R31 071 483 due to fuel volumes on cargo flights, charter flights and general aviation being higher than expected. Personnel costs Personnel costs of R557 982 456 is R27 977 426 lower than the budget of R585 959 882, SACAA has an overall approved permanent staff compliment of 589, however the permanent staff complement for the 2022/2023 financial year was limited to 544 because of the cost cutting measures implemented due to COVID-19 pandemic. On 31 March 2023 the total permanent staff compliment including 17 fixed term contracts was 516. The total number of vacant positions is 88 of which 45 have been put on hold due to the moratorium on the filling of vacant positions. Operating Expenses Operating Expenses of R188 276 058 is R24 459 351 lower than the budget of R212 735 409 mainly due to the implementation of the cost containment measures in response to the COVID-19 pandemic. Savings were realised mainly in the discretional spending areas like training,public relations, conference and seminars, professional fees, repairs and maintanance and telephone costs. Depreciation and amortisation Depreciation and amortisation of R9 070 058 is R5 688 664 lower than the budget of R14 758 722 as a result of the extension of the useful lives of certain property, plant and equipment as well as the postponement of non-critical capital expenditure for the year.

Annual Financial Statements I Annual Report 2022/23 I 221