Page 117 - KZN Film Annual Report 2023/2024

KWAZULU-NATAL FILM COMMISSION
Notes to the Financial Statements (continued)
40. Actual operating expenditure versus budgeted operating expenditure
Refer to Statement of comparison of budget and actual amounts for the comparison of actual operating expenditure versus budgeted expenditure.
40.1 Rendering of services - There are no basis to form budget at the beginning of the financial year. These services are required by filmmaker’s on an occasional basis.
40.2 Rental of facilities and equipment - Film Cluster not fully utilised amounting to less rentals collected than anticipated
40.3 Other income - Other Income includes funds from MICTSeta as a result of the MOU between MICT Seta and KZNFilm. MICT Seta release funds to KZNFilm based on the milestones achieved by the project. These funds were not received in full during 2023-24 financial year resulting in under collection in the account. These funds will be included in the adjusted budget for 2024-25 financial year.
40.4 Interest received - Overcollection in interest is due to high bank balance.
40.5 Government grants and subsidies - No Variance
40.6 Employee related costs - The variance is the result of the provision made for the current period perfomance bonuses.
40.7 Board and committee members’ costs - Overspending is due to additional meetings in relation to the Joint Board Meetings as a result of the merger betweeen KZNFilm and Tourism KZN.
40.8 Marketing and projects - The underspending is due to projects not completed at year end that are expected to be complete in May 2024.
40.9 Audit fees - Variance Immaterial.
40.10 Depreciation and amortisation - The KZNFilm does not budget for depreciation and amortisation as there is no cash
outflow for this transaction.
40.11 Finance costs - No material variance.
40.12 Research and development - No material variance.
40.13 Repairs and maintenance - Repairs and maintenance done on actual repairs required which was less than planned over the period.
40.14 Production and development costs - Underspending for production and development cost is due to few projects having delayed milenstone achievements that were due in february and march 2024. These are expected to be achieved in April and form part of the rollover.
40.15 Operating expenses - The underspending in operating expenses is primarily attributted to several factors: IT cost were lower than anticipated due to the postponement of certain IT projects as a result of the merger: international postage and courier expenses were underspent because of the material that could not be sent to majority of the international film festivals as a result of the budget cuts impacting international travel; and legal costs were underspent due to some legal matters remaining pending at year-end hence no payments were released.
40.16 Gains on disposal of assets: This relates to assets that were disposed during the year.
40.17 Capex - No material variance.
40.18 Bad debts written off - This relate to one cluster tenant thar written off.
40.19 Impairment loss - This reates to an impairment loss on the KZN Studios.
(Registration number M3/15/32 (834/15)) Annual Financial Statements for the year ended 31 March 2024
Figures in Rand
2024
2023
115 ANNUAL REPORT 2023/2024