Page 355 - SAMRC AnnualReport 2025-26

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

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

46. Financial Instruments – Risk Management and other disclosures
(continued)

Governance and oversight
The entity’s policies are approved by the Board. The Chief Financial Officer is responsible for monitoring credit
risk exposures on an ongoing basis, with oversight by the Audit, Risk and IT Committee.
Expected credit loss assessment
The entity applies a simplified approach under GRAP 104 to measure expected credit losses on trade receivables
and non-exchange receivables.

The ECL allowance is determined by viewing its full debtors book on an individual basis. Given that debtors book
is small and is specific to the research environment. Each assessment considered the gross carrying amount,
post year-end payment behaviour, status of collection discussions and reflecting the best case and worst case
recovery outcomes. Forward looking information incorporated into the ECL assessment include the economic
environment of entity debtors, global market conditions affecting research, post year-end payment behaviour
of the entity debtors and the payment discussions at the date of preparation of these financial statements. The
entity has found that all its debt is recoverable in full. No bad debt has been written off during the financial year
under review.

Liquidity risk
The entity’s risk to liquidity is a result of the funds available to cover future commitments. The entity manages
liquidity risk through an ongoing review of future commitments and credit facilities. Trade and other payables are
due within 12 months and equal their carrying balances as the impact of discounting is not significant.

SAMRC’s primary source of income is government grants and contractual income, funds receivable is estimated
when preparing the MTEF. Budgets are prepared for each contract and spend is monitored on an ongoing basis
to ensure the liquidity of the entity.

Market risk
Interest rate risk
As the entity has no significant interest-bearing assets, the entity’s income and operating cash flows are
substantially independent of changes in market interest rates.

In respect of income-earning financial assets and interest-bearing financial liabilities, the table below indicates
their average effective interest rates at the reporting date and the periods in which they mature.

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