OMBUD COUNCIL ANNUAL REPORT 2024/25

PART F: FINANCIAL INFORMATION

FINANCIAL SUMMARY

The Ombud Council recorded a surplus for the 2024/25 financial year of R4.39 million. The main reasons for the surplus are that the Ombud Council earned 4% more in levy income than anticipated, and that the Council underspent on expenditure by 14%, as explained in detail in Note 23 to the Annual Financial Statements.

FINANCIAL HIGHLIGHTS

2024/25

2023/24 %Variance

Total Revenue

27,633,523

32,188,729

14%

Less: Total Expenditure

(23,247,673)

(9,871,265)

(136%)

4,385,850

22,317,464

80%

Surplus for the year

REVENUE The Ombud Council is funded solely by levies (paid by financial institutions) and interest income. Chapter 16 of the FSR Act governs the Ombud Council’s finances and must be read with the Levies Act, which provides the calculation basis for levies to fund the Council. All entities who are required to pay levies to the FSCA are also required to pay levies to the Ombud Council. The amount of the levy payable to the Ombud Council is equal to a fixed legislated percentage (2.5%) of the levy amounts payable to the FSCA. This funding model came into effect at the start of 2023/24 with the commencement of the Levies Act, simultaneous with the Council’s listing as a Schedule 3A public entity under the PFMA. The Council’s revenue received in 2024/25 is R27.63 million which was 14% lower than the prior year. This was due to a contingency bridging allocation that was received from the National Treasury in 2023/2024, which was returned in the current year as the funding was no longer required once levy income began to flow in the latter part of 2023/24. STATEMENT IN TERMS OF SECTION 248(8) OF THE FSR ACT Section 248(8) of the FSR Act requires financial sector bodies to include a statement showing the matters below in their Annual Reports:

Section 248 (8)(a)

The total number of persons who paid fees determined by that financial sector body in the financial year The total number of supervised entities who paid levies imposed in accordance with section 237(1)(b)

Not applicable. The Ombud Council has not charged any fees in the reporting period.

Section 248(8)(b)

12 234

Section 248(8)(c)

The total fees collected by the financial sector body

Not applicable

Section 248(8)(d)

The total levies collected on behalf of the financial sector body

R28 998 750

Section 248(8)(d)

The total levies received by the financial sector body

R30 405 014

62

OMBUD COUNCIL ANNUAL REPORT 2024/25