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WESSA SFM REPORT

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1. INTRODUCTION

The previous financial year was a challenging year for the WESSA Group. The first period of this year begun with the health Minister warning South Africans of a third wave of Covid 19. The organisation has undoubtedly been affected by the chaos revolving around this pandemic and there is still great concern and anxiousness regarding the performance of the organisation for this financial year due to the mention of the third wave. The Group results for April 2021 shows a surplus of R72 363. This is lower than budget and not where we would like to be. WESSA NGO has performed well for the first period of the year and has reached 70% of its budgeted surplus. The Work Skills and Schools Units have contributed to this Surplus. The education Centre results are unsatisfactory and not in line with budget, the areas of concern are being identified and actions to monitor and evaluate these areas put in place.

2. ANALYSIS OF THE FINANCIAL RESULTS AT PERIOD ENDED 26 APRIL 2021

CONSOLIDATED FINANCIAL PERFORMANCE

YTD 26 APRIL 2021 GROUP RESULTS

WESSA

WMS & BP

YTD

Varianc e R'000

Actual R'000

Budget R'000

Actual R'000

Budget R'000

Variance R'000

Actual R'000

Budget R'000

Variance R'000

Incme

1 432 2 027 -595 162 553

-391

1 594 2 580

-986

Expenditure

1 227 1 401 -174 295 568

-273

1 522 1 969

-447

SURPLUS / (DEFICIT)

205 626 -421 -133 -15 -118

72 611 -539

3. RISKS AND MITIGATIONS

Payroll costs vs revenue – Training Unit

Analyse utilisation of staff before any further appointments.

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Market analysis

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Strategic review process to guide new focus areas and business opportunities

WMS financial performance

SFM to work closely with unit manager Credit terms with suppliers Use of mobilisation fee to pay stipends

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Groen Sebenza cash flow risk

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