Page 274 - SAMRC Annual Report 2023-24

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
NOTES TO THE ANNUAL FINANCIAL STATEMENTS

(CONTINUED)

31 MARCH 31 MARCH
2024 2023
R R
16. Deferred income

The decrease in deferred income can be attributed to the utilisation of contract
funds received in advance: Department of Science and Technology; Department
of Health; The Elma Philanthrope; Michelle & Susan Dell Foundation; Global Fund;
MRC UK; EDCTP; The Chan Soon – Shiong Family Foundation and Bill & Melinda Gates
Foundation.
Deferred income 448,637,352 549,632,730
Summary of deferred income
Research grants received in advance 448,539,002 549,433,333
Other funds received in advance 98,350 199,397
448,637,352 549,632,730

17. Employee benefit obligations

Defined benefit plans
Post retirement medical aid plan
SAMRC took a compulsory insurance policy in order to fund post retirement medical obligations of its ex-employees.
Given the nature of the policy, it is appropriate to treat this as a plan asset. Certain assets have been allocated specifically
for the purpose of covering the post retirement medical aid defined benefit liability. The defined benefit medical liability
has been recognised and accounted for under the requirements of GRAP 25 – Employee Benefits. The assets have been
accounted for in terms of the requirements of the accounting standards to which they relate and not in terms of GRAP 25
because the plan is not registered. The Post retirement medical aid plan is valued annually in compliance with GRAP 25.
The relevant assets are included in the statement of financial position. The valuation is based on an employer subsidy of
a percentage of members’ post-employment medical aid contributions, subject to the benchmark maximum. SAMRC
considers paying the annual contribution in order to eliminate the liability. There are no in service members.
The risks to which the plan exposes the entity are the market performance of the plan in order to meet the liability. The
entity will investigate options available to eliminate the net liability as far as possible.

The basis on which the discount rate has been determined is: by reference to market yields at the balance sheet date of
South African long-term bonds.

Pension funds
SAMRC personnel are members of the following pension funds
• State Pension Fund (Associated institutions – AIPF) (Act No. 51 of 1963)
• State Pension fund for temporary employees (Act No. 75 of 1979)
• SAMRC Pension fund (since January 1994)
(a) The first two funds were established by Law and are regulated by the respective Acts.
(b) The last-named fund is regulated by the Pension Fund Act and is managed by an independent Board of Trustees.
The SAMRC Pension fund was actuarially valued at 1 April 2023. Next statutory valuation for the fund is 1 April 2026.
(c) The first two funds offer defined benefits to staff. With regard to the SAMRC Pension fund, some members are on
a defined benefit scheme, while the remainder are on a defined contribution scheme. The Fund operated a closed
defined benefit section for members who joined prior to 1 July 1998.

The SAMRC Pension Fund is valued annually in compliance with GRAP 25.

272 SAMRC ANNUAL REPOR T 2023-24