HSRC Integrated Annual Report 2018/2019

HSRC INTEGRATED ANNUAL REPORT 2018/19 / 131 NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019 (Continued) 26.1 Misstatement of Revenue and Expenditure Items Description Key Adjustment R’000 Increase in accumulated surplus (i) (98) Decrease in administrative expenses (i) (1 111) Increase in income received in advance (ii) (1 169) Increase in finance costs (iii) 31 Decrease in other operating expenses (i) 1 935 Decrease in other operating revenue (ii) 204 Decrease in research cost (i) (430) Increase in research revenue (from exchange transactions) (ii) 842 Decrease in staff cost (i) (146) Decrease in trade and other payables (i) 1 575 Decrease in trade and other receivables (ii) (1 631) Surplus for 2017/2018 decreased 1 324 (i) Adjustment as a result of additional expenses received in the 2018/19 pertaining to the 2017/18 financial year and had not been accrued as well as expenses not accounted for correctly as at 31 March 2018. (ii) Adjustments noted in (i) above included entries on research projects, receivables and also resulted in adjustments in external income and income received in advance. (iii) Adjustment relates to finance costs that had not been correctly accounted for at 31 March 2018. 26.2 Reclassification Description Adjustment R’000 Decrease in administrative expenses (1 079) Increase in other operating expenses 1 079 Decrease in operating expenses (Sale of assets) (460) Increase operating revenue (Sale of assets) 460 27 Irregular Expenditure 2019 March 2018 March R’000 R’000 Opening balance 191 6 465 Irregular Expenditure – current year 1 127 185 Irregular Expenditure – condoned - (6 459) Irregular expenditure awaiting condonement 1 318 191 Analysis of irregular expenditure Irregular expenditure incurred in the current financial year relates to procurement in contravention or not in accordance with applicable legislation. All amounts are under determination with appropriate disciplinary steps to be taken.