Page 261 - SAMRC AnnualReport 2025-26

F I NAN C IAL I N F O R MA T I O N

REPORT OF THE CHIEF EXECUTIVE
OFFICER AND PRESIDENT

General financial review Budget vs Actual Performance

(All figures R’000, prior financial year in parenthesis.) For the 2025/2026 financial year, SAMRC had budgeted for
a nil surplus/deficit however during the year an adjustment
Actual Performance budget was submitted and approved by the National

Minister of Health. The budget had to be adjusted for a
Revenue for the year showed an increase of 13% to
R1 591 560 (R1 408 845). This consists of an increase surplus of R32 669 due to anticipated capital equipment
in government grants of 5.7% to R765 298 (R724 161) donations and the subsequent accounting treatment of
supported by an increase in contract income of 20.7% to such entries.
R826 262 (R684 684). Actual Revenue of R1 695 217 was under budget by
R634 495 (27.2%) against a budget of R2 329 712. This was
Other income has increased by 15.4% to R30 913 (R26 792)
due to increase in recoupment of research grants not fully mainly due to lower than anticipated contract revenue (sale
spent. of goods and services). The underperformance in revenue
was matched by underperformance in expenditure of
Operating expenses reflected an increase of 11.1% to R1 591 088 resulting in underspend of R705 954 (with 94%
R1 589 019 (R1 430 555) due to an increase of 27.3% in being Contracts R660 749) against an expenditure budget
collaborative research costs. of R2 297 043.
The preceding has resulted in an operating surplus of The nett result of the budget to actual is a surplus of
R33 454 (R5 083) for the year. R71 459 against a budget of R32 669 which agrees to the
actual surplus of R104 128.
The organisation remains financially strong with
accumulated reserves of R581 019 (R473 614). Requests to retain cash reserves

Total assets have increased by 30% to R1 536 908 The organisation remains financially strong with
(R1 182 631) due mainly to an increase in cash and cash accumulated surplus reserves of R581 019 (R473 614). The
equivalents by R272 986 and an increase in Property, necessary approvals will be sought from National Treasury
Plant and Equipment by R62 887 due to increased capital for permission to retain the surplus of R104 128 as required
expenditure on buildings, computer equipment and the by the Public Finance Management Act (PFMA).
donation of laboratory equipment.
Supply chain management
Deferred income has increased by 30.2% to R701 523
(R538 756) due to earning more contract funding in the There was no unsolicited bid proposals received during
reporting period. the financial year. The revised Materiality Framework was
approved by the National Minister of Health.
SAMRC generated operating cashflow of R329 339
(R222 844) mainly due to an increase in cash generated Audit report matters
from customers and grants which had increased by There were no matters to report.
R186 000 whilst payments to suppliers only increased by
R93 000. Events after the reporting date

Net cash flows from investing activities were negative No significant events were identified after the reporting
representing cash outflow due mainly to capital date that may have an impact on the financial statements.
expenditure of R51 940 (R60 193) of which about R48 000
was spent on information technology high-performance Economic viability
servers and high-capacity storage solutions. Funding allocations of R902 835 for 2026/27 have been
approved by National Treasury. This together with
The net impact of the above is an increase of R274 814
(R157 774) in cash and cash equivalents. accumulated reserves of R581 019 and the increase
anticipated in the value of grants received will ensure that
the SAMRC will continue to operate as a going concern.

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