Page 104 - KZN Film A Report

KWAZULU-NATAL FILM COMMISSION
(Registration number M3/15/32 (834/15))
Annual Financial Statements for the year ended 31 March 2021
Notes to the Financial Statements (continued)
43. 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.
43.1 Rendering of services - No material variance.
43.2 Rental of facilities and equipment - The under collection in rentals of facilities is due to the payment holiday given to the cluster tenants during the national lockdown period. These offerings were given to the tenants from March to June 2020 and later extended until October 2020.
43.3 Other income - Other Income was unforeseen at the time of the budget thus the KZNFC had not budgeted for it. These include funds recouped from insurance claims, various production projects and fees earned from sale of tender documents.
43.4 Interest received - investment - No material variance.
43.5 Government grants and subsidies - Grants received as expected at year-end year.
43.6 Employee related costs - The underspend in Employee Related costs is due to non-filling of vacant posts by KZNFC and non-implementation of cost of living increases as a result of Circular issued by National Treasury during 2020/21 financial year.
43.7 Board and committee members costs - The overspending in Board Fees is due to additional board meetings that were held during the financial year that were not included in the plan for 2020/21 financial year to discuss merger.
43.8 Marketing - The underspend in Marketing is due to the delay in finalising some of the projects that were planned to take place during the financial year due to the Covid 19 induced national lockdown. These projects were committed late in the financial year, and include Gagasi fm partnership and EDTEA Corporate Video.
43.9 Audit fees - The underspending in Audit Fees is due the external audit being conducted remotely due to the national lockdown as a result of the COVID-19 breakout resulted in savings.
43.10 Depreciation and amortisation - The KZNFC does not budget for depreciation and amortisation as there is no cash outflow for this transaction.
43.11 Finance costs - No material variance.
43.12 Research and development - The underspending in Research and Development is due to research projects not
achieving milestones on time thus payment could not be released without the achievement of the set milestones. 43.13 Repairs and Maintanance - No material variance
43.14 Production and development costs -The underspending in Production and Development Funding is due to
the national lockdown as a result of COVID-19 which impacted the progress of majority of production projects. The underspending is also due to production and development projects being multi-year in nature and payments being processed according to milestones achieved on the projects.
43.15 Operating expenses - The underspend in operating expenses is due to savings identified as a result of cost cutting measures implemented as per Provincial Treasury circulars as well as savings realised for some of the overheads that were not paid during COVID-19 national lockdown due to KZNFC operating remotely.
43.16 Capex - The underspending in Capital expenditure is due to the furniture whose SCM process was finalised in the fourth quarter and could not be delivered by year-end.
44. Unauthorised expenditure
There was no authorised expenditure incurred during the financial period under review.
Figures in Rand
2021
2020
102
KZN FILM COMMISSION ANNUAL REPORT 2020/2021