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HSRC Annual Report 2016/17
29.5 Administrative expenses
Administration costs mainly include audit fees, subscriptions and manuscripts, insurance related costs, printing and
photocopying expenses as well as postal and delivery costs. Spending for the financial year was within budgeted
amounts with 3% unutilised being channelled to core research activities.
29.6 Research cost
Research costs incurred exceeded budgeted amount by 6%. When comparing research costs to research revenue the
difference is 15% as opposed to breaking-even. This is due to the utilisation of the prior year surplus to further other
unfunded research projects which were undertaken once the surplus retention approval was received from National
Treasury.
29.7 Staff cost
Staff costs spending exceeded the budgeted amount by 1%, being an amount of R2 million. This was largely as a result
of termination benefits paid to two former Executives of the HSRC amounting to R3.3 million. One instance was a CCMA
case where the employee was awarded a pay-out, while the other was a mutual termination arrangement effected on
15 March 2017.
29.8 Other operating expenses
Expenditure was below the budgeted amount for the financial year due to stringent cost containment measures which
continue to be implemented with an aim of ensuring that the organisation remains sustainable in the long-term,
channelling more funding to core research activities.
29.9 Depreciation, amortisation and impairment expense
Depreciation expenses exceeded budgeted amounts due to research projects undertaken in the year with extensive
assets capitalisation. Such assets are depreciated at the lower of their useful lives or project duration, hence the increase
in the depreciation expenses recorded for the financial year.
30. Financial instruments
30.1
Financial instruments consist of receivables, payables, finance leases and cash and cash equivalents. In the case of all
financial instruments, the carrying value approximates the fair value based on the discounted cash flowmethod which
was used to estimate the fair value. As at 31 March 2017 the carrying amounts and fair values for the financial assets or
liabilities were as follows:
Note(s)
2017
2016
Carrying
amount
R’000
Fair value
R’000
Carrying
amount
R’000
Fair value
R’000
Financial assets
Cash and cash equivalents
1
61,307
61,307
111,148
111,148
Trade and other
receivables
2
43,727
43,727
30,388
30,388
105,034
105,034
141,535
141,535
Financial liabilities
Measured at amortised
cost
Trade and other payables
8
29,786
29,786
31,911
31,911
Finance lease liability
10
-
-
-
-
29,786
29,786
31,911
31,911