Page 255 - SAMRC Annual Report 2024-2025

FINANCIAL INFORMATION

REPORT OF THE CHIEF EXECUTIVE

OFFICER & PRESIDENT

General financial review directly linked to the increase in permanent staff numbers,
830 (794). This translates to an average increase of 4.2%
(All figures R’000, prior year in parenthesis.)
per staff member. Employee related costs include net
Revenue for the year showed an increase of 4.6% to bonus provision costs of R15 319 (R15 815).
R1 408 845 (R1 347 255). This consists of an increase in The SAMRC generated a net surplus for the year of
government grants of 9.65% to R724 161 (R660 413) offset R60 666 compared to an approved budget deficit of
by a decrease in contract income of 0.3% to R684 684 R Zero. This surplus was generated from an underspent
(R686 842).
of R39m under baseline funded activities and income
Other income has increased by 29.8% to R26 792 (R20 648) generated from contract funded activities of R21m.
due to an increase in conference and seminar activities and Revenue was R343 756 under budget and expenditure was
recoupment of research grants.
R404 422 under budget. The under-recovery on revenue
Operating expenses reflected a decrease of 1% to was mainly due to lower than anticipated contract funded
R1 430 555 (R1 451 905). research revenue towards the end of the financial year,
The preceding has resulted in an operating surplus of especially the start of quarter 4 when the SAMRC was issued
R5 083 for the year compared to an operating deficit of with stop work orders from the USA Federal Government
R84 001 of the previous financial year 2023/24. The surplus on Federal funded projects. The impact of this stop work
is the result of the 9.65% increase in the government order resulted in lower than the expected revenue and
grant and a decrease of 14% in Collaborative research expenditure on contract funded research activities. Baseline
expenditure resulting in an overall decrease in total funded projects activities spending was also lower than
operating expenses by 1%. anticipated which contributed to the surplus of R39m.
The organisation remains financially strong with Staff Expenditure, Laboratory expenses and Collaborative
accumulated reserves of R473 614 (R412 948). research costs were R15 569, R13 500 and R246 823 under
budget respectively due mainly to reduced contract
Total assets have increased by 17% to R1 182 631 funded research projects activities which did not happen
(R1 009 310) due mainly to an increase in cash and cash partly due to the stop work order issued by the USA
equivalents of R157 724 and an increase in Property, Federal Government on Federal funded projects.
Plant and Equipment of R27 260 due to increased capital
expenditure on Buildings. Requests for roll over of funds
Deferred income has increased by R90 119 to R538 756 The organisation remains financially strong with
(R448 637) due to earning more contract funding in the accumulated reserves of R473 614 (R412 948). The
reporting period. necessary approvals will be sought for the rollover of funds
The SAMRC generated a positive operating cashflow of received from Government but not yet spent.
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. There were no unsolicited bid proposals received during
the year. The revised Materiality Framework was approved
Net cash flows from investing activities were negative by the Minister.
representing cash outflow due mainly to capital
expenditure of R60 193 (R43 423). Audit report matters
The net impact of the above is an increase of R157 774 There were no matters to report.
in cash and cash equivalents compared to a decrease of
R195 708 in cash and cash equivalents in the prior year. Events after the reporting date
Trends No significant events were identified after the reporting
date that may have an impact on the financial statements.
Operating expenses reflected a decrease of 1% to
R1 430 555 (R1 451 905). This is mainly the result of a Economic viability
decrease in collaborative research expenditure of R77 125, Funding allocations of R765 298 for 2025/26 have been
off-set by an increase in employee costs of R47 299. approved by Government. This together with accumulated
Employee related costs have increased by 8.5% to R599 247 reserves of R473 614 and the increase anticipated in the
(R551 948) driven mainly by basic salary costs which have value of grants received will ensure that the SAMRC will
increased by 9% to R486 275 (R445 861). This increase is continue to operate as a going concern.

SAMRC ANNUAL REPOR T 2025-26 253