Page 217 - SAMRC Annual Report 2023-24

FINANCIAL INFORMATION

REPORT OF THE CHIEF EXECUTIVE

OFFICER & PRESIDENT

General financial review continued increased research activities and includes
increases in employee costs of R67 883, travel and
(All figures R’000, prior year in parenthesis.)
subsistence of R12 397, collaborative research costs of
Revenue for the year showed an increase of 6% to R6 828 and the surrendering of surplus to National Treasury
R1 347 255 (R1 270 637). This consists of a decrease in of R20m.
government grants of 2% to R660 413 (R677 264) offset
by an increase in contract income of 16% to R686 842 Employee related costs have increased by 14% to
(R593 373). R551 948 (R484 065) driven mainly by basic salary costs
which have increased by 12% to R445 861 (R399 495).
Other income has decreased significantly by 26% to Employee related costs include net bonus provision
R20 648 (R28 030) decrease in conference and seminar costs of R15 815 (R6 391). The net asset pertaining to
activities and exchange gains generated on foreign the Pension Fund and Post-Retirement medical aid
currency grant income. obligations has increased by R2 081 compared to an

Operating expenses reflected an increase of 9% to increase of R2 428 in the prior year.
R1 451 905 (R1 333 008). This is mainly the result of The net deficit for the year of R21 366 compared to a final
continued increased research activities funded from budget deficit of R 25 878. Revenue was R117 928 over
contract income. budget while expenditure was R113 417 over budget.
This has resulted in an operating deficit of R84 001 for This was due to higher than anticipated contract income
the year compared to an operating deficit of R34 340 recognised of R115 151 due to the increase in research
in 2022/23. A significant increase in investment income activity as well as other non-tax revenue of R35 128.
of 48% to R62 795 (R42 545) due to an increase in the
average balance of investments during the year under Compensation of employees exceed the budget by
review as well as the higher interest rates resulted in a R87 580 and Goods and Services by R20 083 due to
net deficit for the year of R21 366 compared to a net recognition of external contract and grant revenue.
surplus of R7 545 in 2022/2023.
Requests for roll over of funds
The organisation remains financially strong with
accumulated reserves of R412 948 (R434 315). The organisation remains financially strong with
accumulated reserves of R412 948 (R434 315). The
Total assets have decreased by 14% to R1 009 310 necessary approvals will be sought for the rollover of
(R1 171 837) due mainly to a decrease in cash and cash funds received from Government but not yet spent.
equivalents of R197 602 offset by an increase in Property,
Plant and Equipment of R34 755 due to increased capital Supply chain management
expenditure on Laboratory equipment and Information
Technology. There were no unsolicited bid proposals received during
the year. The revised Materiality Framework was approved
Deferred income has decreased by R100 995 to R448 637 by the Minister.
(R549 632).
The SAMRC generated a negative operating cashflow Audit report matters
of R142 334 compared to a positive operating cashflow There were no matters to report.
of R75 981 in the prior period due mainly to an increase
in payments to suppliers and a decrease cash received. Events after the reporting date

Net cash flows from investing activities were positive due No significant events were identified after the reporting
mainly to capital expenditure of R43 423 (R52 981). date that may have an impact on the financial statements.
The net impact of the above is a decrease of R195 708
in cash and cash equivalents compared to an increase Economic viability
of R21 547 in cash and cash equivalents in the prior year.
Funding allocations of R724 161 for 2024/25 have been
Spending trends approved by Government. This together with accumulated
reserves of R412 948 and the increase anticipated in the
Operating expenses reflected an increase of 9% to value of grants received will ensure that the SAMRC will
R1 451 905 (R1 333 008). This is mainly the result of continue to operate.

SAMRC ANNUAL REPOR T 2023-24 215