Page 106 - TKZN Annual Report 2023/2024

KWAZULU-NATAL TOURISM AUTHORITY
Trading as Tourism KwaZulu-Natal
Annual Financial Statements for the year ended 31 March 2024
Statement of Comparison of Budget and Actual Amounts
Budget on Cash Basis
MATERIAL VARIANCES (GREATER THAN 10%) BETWEEN APPROVED BUDGET AND ACTUAL AMOUNTS:
* Variances below 10% are considered immaterial, and therefore no reason are provided in such cases.
# Services received in-kind, were not budgeted for, the inflow of resources to the entity was not in monetary value.
A: PROJECT INCOME: NON-DISCRETIONAL GRANT
- Project funds of R25,513 million were rolled over in respect of infrastructure projects, more fully disclosed in the note of payables from non-exchange transactions.
B: TOURISM INFORMATION OFFICE
- Intranet and Microsoft licences costs were not incurred due to the sharepoint project not progressing as expected. Research costs for the business tourism study were also not incurred as planned due to challenges in procuring a suitable service provider.
C: TOURISM DEVELOPMENT
- The multi-year infrastructure projects implemented on behalf of EDTEA are managed by the Tourism Development unit. R18,197 million was rolled over from the previous financial year of which R1.4 million was spent in 2023/2024. The projects have experienced various challenges arising from the areas where the projects are located and land ownership issues.
In addition, funds earmarked for the SMME’s Support Programme were not spent as planned due to the business needs analysis of the identified SMME tourism businesses not being completed timeously.
D: CORPORATE SERVICES
-Delays in the appointment of the internal audit service provider resulted in savings on internal audit fees. There were also savings on advertising and legal fees for vetting of contracts due to minimal bids processed during the year. Savings were achieved on rental for the head office premises arising from positive negotiations with the landlord. In addition, delays in the recruitment process resulted in under expenditure on human resouce related activities.
E: CAPITAL EXPENDITURE:
- Capital expendure on IT hardware was underspent due to the service provider delivering laptops with the incorrect specifications .
Figures in Rand
Approved budget R ‘000
Adjustments R ‘000
Final Budget R ‘000
Actual amounts on comparable basis R ‘000
Difference between final budget and actual R ‘000
Reference
104 TOURISM KWAZULU-NATAL ANNUAL REPORT 2023/2024