HSRC Integrated Annual Report 2018/2019

HSRC INTEGRATED ANNUAL REPORT 2018/19 / 119 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019 (Continued) 12.7 Analysis of Past Year and Future Projected Liability Year ending 31/03/2018 Year ending 31/03/2019 Year ending 31/03/2020 R’000 R’000 R’000 Opening accrued liability 3 294 2 897 2 507 HSRC liability Current service cost 14 15 12 Interest cost 267 217 202 Actuarial loss/(gain) (237) (198) - Total annual expense 44 34 214 Contributions (benefits paid) (441) (424) (389) Closing accrued liability 2 897 2 507 2 332 2019 March 2018 March R’000 R’000 13 Analysis of Deficit Deficit recorded (552) (820) The recorded deficit was largely as a result of the organisation failing to meet its external income target which resulted in fixed costs being incurred without recovery from projects. This position is anticipated to turn around in the new financial year with a number of large projects expected to commence. This will improve recoveries which should offset fixed costs incurred by the organisation. The deficit can be attributed to debtors outstanding for more than 120 days which were provided for as bad debts. 14 Revenue from Exchange and Non-exchange Transactions 14.1 Research Revenue (From Exchange Transactions) International funding agencies 76 333 112 432 National and provincial funding agencies 89 330 87 059 Private sector 8 940 43 170 Professional services and secondment - 570 Universities 4 568 1 064 179 171 244 295 14.2 Parliamentary Grants (From Non-exchange Transactions) Parliamentary grants received 264 116 267 242 264 116 267 242