Ombud Council AR 2026

PART F: FINANCIAL INFORMATION

21. Accounting by principals and agents (continued) Furthermore, section (2)(1)(b) of the Levies (Administration) Act provides that the financial sector levy referred to in section 4(1)(a) of the Levies Act and the special levy referred to in section 8(2)(a) of that Act, must be collected and administered by the FSCA and paid to the financial sector bodies referred to in paragraph (a) under section 246 of the FSR Act. On 1 April 2023, the Financial Sector and Deposit Insurance Levies (Administration) and Deposit Insurance Premiums Act, 2022 (Act No. 12 of 2022) (Levies (Administration Act)) came into effect. Based on the above legislation, the principal-agent agreement came into effect, whereby the FSCA invoices the financial services industry on behalf of the Ombud Council. The Ombud Council is the principal. More information relating to the FSCA balances and transactions is disclosed in the related party note 14. Entity as principal Resources (including assets and liabilities) of the entity under the custodianship of the agent The resources that have been recognised by the agent in its financial statements at year end with a debtor balance of R4 721 895. The remittance of resources during the period amounted to R27 333 898. Fee paid The principal-agent arrangement does not include a fee for the agent. Resource and/or cost implications for the entity if the principal-agent arrangement is terminated There will be no cost implications should the principal-agent arrangement be terminated but there would be operational implications of the Ombud Council performing it’s own Levy invoicing and collection processes. 22. Cash (used in) generated from operations Amounts in Rand 2026 2025

Suªrplus

5 011 501 4 385 850

Adjustments for: Depreciation

157 604 (714 582)

122 660 92 614

Movements in provisions

Changes in working capital: (Decrease)/increase in receivables

(5 925 198)

2 285 785 (367 965) 3 872 575 10 391 519

Prepayments

10 643

(Decrease)/increase in payables

(803 296)

(2 263 328)

Ombud Council 2025/26 Annual Report

97