Ombud Council AR 2026

PART B: PERFORMANCE INFORMATION

4.3. Strategy to overcome areas of underperformance. The Council’s proposals to address underperformance in relation to the deviations indicated in the tables above are as set out in the applicable column in the tables. 4.4. Linking Performance to Budgets The Council has met 15 of 16 (94%) of the Output Indicators targeted in our APP for the 2025/26 financial year and has spent 87% of the total expenditure budgeted for the three programmes. Table 8: Budget Expenditure 2025/26 2024 / 2025

(Over) / Under Expenditure

(Over) / Under Expenditure

Actual Expenditure

Actual Expenditure

Programme

Budget

Budget

Administration

15 613 074 14 282 861 1 330 213 17 038 261

13 928 315 3 109 946

Consumer awareness and education

8 813 595

6 626 630

2 186 965 9 946 971 9 319 358

627 613

Ombud System Reform 2 237 400 2 217 881

19 519

–

–

–

Total expenditure 26 664 069 23 127 372 3 536 697 26 985 232 23 247 673 14% The main reason for the underspend is due to the cashflow risk identified during the financial year, as a result of which the Council contained costs and deferred planned operating expenditure not contractually committed to until levy payments started to flow from February 2026. One of the major consumer education and awareness projects, the baseline study has been deferred to the next financial year (see paragraph 2.1.2 above for further information). National Treasury approval will be requested to retain the remaining accumulated surplus to cover the cost of the deferred baseline study and to supplement 3 737 55 100% 87% 13% 100% 86%

the contingency reserve account to mitigate future cashflow risks. 5. Revenue Collection The Council received 8% more levy income than budgeted for the financial year. Table 9: Budgeted Revenue 2025/26

2024 / 2025

(Over) / Under Revenue

(Over) / Under Revenue

Actual Budget

Actual Revenue

Actual Budget

Actual Revenue

Revenue

Levies

25 356 618 1 307 451

27 333 898 ( 1 977 280 ) 25 473 232 26 528 367 ( 1 055 135 )

Interest received Other income Total revenue

802 975

504 476 1 512 000 1 030 364

481 636 ( 74 792 )

–

2 000

( 2 000 )

-

74 792

26 664 069 28 138 873 ( 1 474 804 ) 26 985 232 27 633 523 ( 648 291 ) 100% 106% ( 6%) 100% 102% ( 2% )

6.Capital Investment The Council does not have any infrastructure projects requiring capital investment. The Council’s assets include computer equipment, office equipment and finance-leased assets only. During the period under review there were no losses incurred on the disposal of any assets. Asset processes are in place to monitor and safeguard assets owned by the entity. All assets are insured.

Ombud Council 2025/26 Annual Report

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