HSRC Integrated Annual Report 2018/2019

132 / HSRC INTEGRATED ANNUAL REPORT 2018/19 PART E: ANNUAL FINANCIAL STATEMENTS 28 Fruitless and Wasteful Expenditure 2019 March 2018 March R’000 R’000 Opening balance 161 3 305 Fruitless and wasteful expenditure – current year 189 185 Fruitless and wasteful expenditure – identified in the current year and relates to the prior year 4 Fruitless and wasteful expenditure – condoned - (3 305) Recovered (7) (24) Fruitless and wasteful expenditure awaiting condonement 347 161 Instances of fruitless and wasteful expenditure recorded for the year: 1 Fruitless and wasteful expenditure mainly relates to salaries and leave overpayments as a result of system and/or control breakdowns. The money is being recovered from current and former staff erroneously paid. Additional measures have since been implemented to prevent reoccurence of these errors. 2 The other portion relates to missed flights, interest charged on an invoice and staff members traffic admin fines that were incurred and should have been avoided. The money was or will be recovered from the staff members concerned. 29 Statement of Comparison of Approved Budget to Actual Results (Explanatory Notes) 29.1 Research Revenue Research revenue attained was below expectations. This was largely due to the absence of flagship projects undertaken in the financial year under review. Most of these flagship projects were undertaken and completed in the comparable financial year. Strategic engagements in new funding markets continue to be explored, especially on the three flagship projects on poverty and inequality. The organisation has also secured a number of multi-year big projects which will be undertaken in 2019/20 financial year. These projects augment baseline funding received from government which has and continues to be characterised by budget cuts. 29.2 Parliamentary Grants The Parliamentary Grant allocation received from the DST was fully utilised during the year under review, in line with the HSRC’s mandate as stipulated in the HSRC Act, HSRC’s Strategy and Annual Performance Plan (2018/19 financial year), as presented to the Minister of DST and Parliament. 29.3 Parliamentary Grants – Ring-Fenced The ring-fenced allocation received from the DST was fully utilised during the year under review, in line with the HSRC’s mandate as stipulated in the HSRC’s Act, HSRC’s Strategy and Annual Performance Plan (2018/19 financial year), as presented to the Minister of DST and Parliament. This allocation was earmarked for Science and Technology indicators and was exclusively used for that purpose in line with the CeSTII Business plan for the 2018/19 financial year. 29.4 Other Operating Revenue Other operating revenue is mainly generated from the rental agreement with the Department of Public Works, publication sales, as well as interest earned on unused funds (mainly the parliamentary grant). The target was not achieved largely due to less interest revenue earned in the year as more cash flow resources were frequently required to pay normal operational expenses as opposed to funds being in interest bearing accounts. The Cafeteria was also closed on 31 August 2018 which impacted on other revenue earnings. Less insurance recoveries and publication sales in the NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2019 (Continued)