WESSA Annual Review 2020

On a year on year comparison, there has been a decrease in income and expenditure. The main reasons for lower income are low project income and low education centre income. However, this was replaced by donations brought to book. This was the second year since uMngeni Valley, Treasure beach and Twin Streams Education centres operated in the Wildlife Marketing PTY LTD subsidiary. This was in line with the hybrid model as approved by the board. The financial performance by the educations centres was not disappointing and the results were significantly below the approved 2019/20 budget. Due to this poor performance, it necessitated an organisational restructure, and a subsequent retrenchment process took place in September 2019. This process was crucial and necessary in the reduction of costs. Low project income is indicative of the nature of the projects that were implemented through the year. These were mainly Government funded projects with very low margins where the implementers fee pays towards professional fees and all other expenses incurred by the project management team. There is no management fee income, however we can do WESSA training. Salaries again this year contributed to 66% of total costs. Retrenchments costs are also included in the salary expenses (not shown as abnormal costs below the line) as well as the leave accrual adjustment. There has been no provision made for bonus due to the operational results and as recommended by RemCom. (Any bonus paid must be self-funded from operating profits). The above results also include various IFRS (the International Financial Reporting Standards and the Companies Act of South Africa) adjustments. IFRS16 which is the Right of use of asset pertaining to any leases that exist. This had no material impact on the income statement but rather on the balance sheet. The adjustment in the balance sheet will be reversed in the new financial year. IFRS9 assessment resulted in a provision for bad debt of about R 276 000 which is included as an expense in the income statement. IFRS15 All general donations previously accumulated in the balance sheet had to be brought to the income statement, unlike previous convention where this was done in prior years.

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The WESSA Training Division must be commended for their great performance at the end of the 2019/20 financial year. This is a direct result of the nature of projects that the organisation implemented- Government funded projects developing the capacity of youth and provided workplace experience.

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The comparison of year-on-year sources of income illustrated below:

Annual Review 2019-2020

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