Financial Report
Statement of Financial Position | 2023 (ZAR) | 2024 (ZAR) |
|---|---|---|
ASSETS | ||
Property, plant & equipment | 973,951 | 781,547 |
Investments | 6,969,785 | 6,791,960 |
Cash resources | 4,467,947 | 10,234,874
|
TOTAL | 12,411,683 | 17,808,381 |
RESERVE & LIABILITIES | ||
Access and Support Fund | 490,083 | 1,341,601 |
Fr Noel Stanton Fund | 10,616,729 | 9,950,196 |
TOTAL RESERVES | 11,106,812 | 11,291,797 |
Accounts Payable | 450,972 | 557,116 |
Receipts in advance & deferred income | 853,899 | 5,959,468 |
TOTAL | 12,411,683 | 17,808,381 |
Summary of Income & Expenditure | 2023(ZAR) | 2024 (ZAR) |
|---|---|---|
INCOME | ||
Grants received – Trusts & Corporates | ||
Direct student funding | 2,900,370 | 2,609,477 |
Support & administration | 6,789,658 | 5,648,934 |
Special projects | 744,945 | 890,000 |
Schools programme | 4,936,117 | 6,117,330 |
Unrestricted funding | 773,695 | |
Other income | 25,744 | 39,087 |
Interest & Investments | 218,769 | 263,062 |
TOTAL INCOME | 15,606,408 | 16,039,435 |
EXPENDITURE | ||
Programmatic | ||
Direct student costs (eg. meals, books, transport) | 2,683,629 | 2,717,493 |
Student support & development services | 3,966,873 | 3,921,185 |
Schools Programme | 4,290,205 | 5,520,081 |
Programme Development & Research | 1,853,812 | 1,525,402 |
TOTAL | 12,794,519 | 13,684,161 |
Operational | ||
Human Resource Administration | 458,779 | 366,809 |
Management costs | 633,620 | 166,574 |
Communication & IT | 456,502 | 416,455 |
Finance & bursary administration | 1,098,511 | 1,044,639
|
Property & Vehicle costs | 1,083,419 | 909,031 |
Fundraising | 640,868 | 190,730 |
TOTAL | 4,371,699 | 2,927,527 |
TOTAL EXPENDITURE | 17,166,218 | 16,611,688 |
Net operating surplus / (deficit) for year | (1,559,810) | (436,805) |
Increase in provision for outstanding leave pay | (26,084) | (19,104) |
Net effect of property, plant & equipment capitalisation | 93,821 | 192,573 |
OVERALL DEFICIT FOR THE YEAR | (1,482,878) | (648,482) |
REAP Finance team
Corporate Governance
The REAP Board met three times in 2024, and the Board Executive Committee four times, some virtual and some face to face. The Board consists of 14 members and is responsible for policy and overall governance, with the day-to-day management delegated to the Director and the senior leadership team.
The Board endorses the principles in the Voluntary Independent Code of Good Governance and Values for Non-profit organisations in South Africa. The Board abides by the principles of openness, integrity and accountability.
Systems of financial and internal control are in place and provide reasonable assurance that the assets are safeguarded, and that liabilities and working capital are efficiently managed. The financial information has been disclosed in line with the latest international best practice. Nothing has come to the attention of the Board or the independent external auditors to indicate any material breakdown in the functioning of the internal controls during the financial year.
Highlights
2024 saw REAP’s income increase marginally, but expenditure also decreased by around half a million, reducing the deficit from R1,482,878 in 2023 to R648,482 in 2024. The financial position and operating results of the organisation for the year ended 31 December 2024 are adequately reflected in the financial statements.
Funding for our university work has markedly reduced since the introduction of ‘free’ higher education in 2018. Accordingly our intake of new students in 2024 was restricted to where we had specific donor support for them. On a more positive note, we have secured longer term sustainable funding for both our work with TVET students and our work in schools preparing learners for Post School Education & Training.
In March 2024, the REAP Board ratified a decision to transfer R1.5M from the Noel Stanton Reserve sustainability fund (which is a long term managed investment account) into the Access & Support Reserve Fund (ASRF) – which is essentially a working capital account invested in the short term money market. After taking into account the annual operating deficit, the balance of the ASRF at year end was R1,341,601.
Securing funding for core (ie. non-programmatic) costs remains a challenge, especially as we lost a long term unrestricted donor in 2024. With a view to streamlining our non-programmatic management costs, we made a senior programme manager redundant at the end of 2023, and the Director and Deputy Director now have direct programmatic management responsibilities. This accounts for substantial reductions in staff allocations to management and fundraising expenditure. In addition, the REAP Board authorised an annual transfer of up to 5% of the end of year value of the Noel Stanton Reserve Fund (NSRF) for use as unrestricted income in the same financial year. In 2024 this amounted to R523,695. However the investment performance of our Noel Stanton reserve fund improved significantly (13.54% growth in 2024), and so its balance as at 31 December 2024 stands at R9,950,196, after the transfer of R1.5M to the ASRF and the use of R523,695 as unrestricted income. Our total reserves at the end of 2024 increased by 1.6% from 2023.