Page 11 - Annual Report - Summative Report 2024-2025

REPORT OF THE CHIEF EXECUTIVE OFFICER & PRESIDENT

General financial review SAMRC generated a net surplus for the year of R60 666
compared to an approved budget deficit of R Zero. This
(All figures R’000, prior year in parenthesis.)
surplus was generated from an underspent of R39m
Revenue for the year showed an increase of 4.6% to under baseline funded activities and income generated
R1 408 845 (R1 347 255). This consists of an increase from contract funded activities of R21m. Revenue was
in government grants of 9.65% to R724 161 (R660 413) R343 756 under budget and expenditure was R404 422
offset by a decrease in contract income of 0.3% to under budget. The under-recovery on revenue was
R684 684 (R686 842). Other income has increased by 29.8% mainly due to lower than anticipated contract funded
to R26 792 (R20 648) due to an increase in conference and research revenue towards the end of the financial year,
seminar activities and recoupment of research grants. especially the start of quarter 4 when the SAMRC was
Operating expenses reflected a decrease of 1% to issued with stop work orders from the USA Federal
R1 430 555 (R1 451 905). Government on Federal funded projects. The impact of
this stop work order resulted in lower than the expected
The preceding has resulted in an operating surplus of revenue and expenditure on contract funded research
R5 083 for the year compared to an operating deficit of activities. Baseline funded projects activities spending
R84 001 of the previous financial year 2023/24. The surplus was also lower than anticipated which contributed to the
is the result of the 9.65% increase in the government surplus of R39m. Staff Expenditure, Laboratory expenses
grant and a decrease of 14% in Collaborative research and Collaborative research costs were R15 569, R13 500
expenditure resulting in an overall decrease in total and R246 823 under budget respectively due mainly to
operating expenses by 1%. reduced contract funded research projects activities
which did not happen partly due to the stop work order
The organisation remains financially strong with issued by the USA Federal Government on Federal
accumulated reserves of R473 614 (R412 948). Total assets funded projects.
have increased by 17% to R1 182 631(R1 009 310) due
mainly to an increase in cash and cash equivalents of
R157 724 and an increase in Property, Plant and Equipment Requests for roll over of funds
of R27 260 due to increased capital expenditure on
Buildings. Deferred income has increased by R90 119 The organisation remains financially strong with
to R538 756 (R448 637) due to earning more contract accumulated reserves of R473 614 (R412 948). The
funding in the reporting period. necessary approvals will be sought for the rollover of
funds received from Government but not yet spent.
SAMRC generated a positive operating cashflow of
R222 844 compared to a negative operating cashflow of Supply chain management
R142 334 in the prior period due mainly to an increase in
cash and a decrease in payments to suppliers. Net cash There were no unsolicited bid proposals received
flows from investing activities were negative, representing during the year. The revised Materiality Framework was
cash outflow due mainly to capital expenditure of approved by the Minister.
R60 193 (R43 423). The net impact of the above is an
increase of R157 774 in cash and cash equivalents Audit report matters
compared to a decrease of R195 708 in cash and cash
equivalents in the prior year. There were no matters to report.

Trends Events after the reporting date

Operating expenses reflected a decrease of 1% to No significant events were identified after the reporting
R1 430 555 (R1 451 905). This is mainly the result of date that may have an impact on the financial statements.
a decrease in collaborative research expenditure of
R77 125, offset by an increase in employee costs of Economic viability
R47 299. Employee related costs have increased by 8.5%
to R599 247 (R551 948) driven mainly by basic salary costs Funding allocations of R765 298 for 2025/26 have been
which have increased by 9% to R486 275 (R445 861). This approved by the Government. This together with
increase is directly linked to the increase in permanent staff accumulated reserves of R473 614 and the increase
numbers, 830 (794). This translates to an average increase anticipated in the value of grants received will ensure that
of 4.2% per staff member. Employee related costs include the SAMRC will continue to operate as a going concern.
net bonus provision costs of R15 319 (R15 815).

SUMMA
TIVE REPOR
SAMRC SUMMATIVE REPOR T 2025-26T 2024-25 11
SAMRC