Page 352 - SAMRC AnnualReport 2025-26

ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2026
NOTES TO THE ANNUAL FINANCIAL STATEMENTS
(CONTINUED)

39. Deviation from supply chain management regulations

Paragraph 12(1)(d)(Pathi) of Government gazette No. 27636 issued on 30 May 2005 states that a supply chain
management policy must provide for the procurement of goods and services by way of a competitive bidding
process.
Paragraph 36 of the same gazette states that the accounting officer may dispense with the official procurement
process in certain circumstances, provided that he records the reasons for any deviations and reports them to the
next meeting of the accounting authority and includes a note to the annual financial statements.

All deviations were documented and will be submitted to the Accounting Authority or its delegate in terms of the
Delegation of Authority Framework. Deviations were motivated in advance and subsequently approved.

40. Public Finance Management Act (PFMA)

Section 55 (2)
No material losses through criminal conduct were incurred during the period ended 31 March 2026. Irregular and
fruitless and wasteful expenditure incurred has been disclosed in note 38.
Section 54 (2)

In terms of the PFMA and Treasury Regulation 28.3 the entity has developed and agreed to a framework of
acceptable levels of materiality and significance.

41. Budget differences

Material differences between budget and actual amounts
Other non-tax revenue were higher than anticipated. Lower than anticipated external funding from contracts and
grants were received during the period under review. Although other non-tax revenue exceeded expectations,
external funding from contracts and grants was lower than anticipated. As a result, expenditure on salaries and
goods and services was reduced, reflecting the lower level of contract and grant income received during the
period under review.
The adjustment reflects the VAT which is allocated as a transfer and subsidies expense. The SACENDU grant and
funding for the Social Impact Bond (SIB) was included in the budgeted transfers received, but was allocated to
the sale of goods and services as this is managed as separate contracts.

The adjustment budget for a surplus of R32,669,000 was approved on 14 December 2025.

The funding of R132,000,000 including VAT received from National Department of Health for projects affected by
US funding cuts is included in sale of goods and services.

42. Contingencies

Contingent liabilities
There are three ex-staff member claims, one at the CCMA and two at the Labour court. At this stage, the outcome
of the cases is unknown and it is not practical to estimate the financial effect of the claims.

There is one high court claim by a research trial participant. The matter will be defended. At this stage, the
outcome of the case is unknown and it is not practical to estimate the financial effect of the claim.

The SAMRC has applied to National Treasury to retain the accumulated surplus funds of R581,019,961 if approved,
the accumulated surplus funds will not have to be paid to National Treasury.

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