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OUR PERFORMANCE
The dedication and tenacity of the Finance team are commendable and deserve mentioning…. Most notable is the unqualified audit opinion that was issued for the 31 March 2022 Annual Financial Statements.
Rianda Kruger, ACTING CHIEF FINANCIAL OFFICER
OUR PERFORMANCE
The dedication and tenacity of the Finance team are commendable and deserve mentioning…. Most notable is the unqualified audit opinion that was issued for the 31 March 2022 Annual Financial Statements.
Rianda Kruger, ACTING CHIEF FINANCIAL OFFICER
Despite many challenges and pressures, SANBS achieved excellent results for the 2021/2022 financial year and remains committed to providing trusted blood products and services to all patients at a world class level of cost and quality.
Despite many challenges and pressures, SANBS achieved excellent results for the 2021/2022 financial year and remains committed to providing trusted blood products and services to all patients at a world class level of cost and quality.
The 2021/2022 financial year saw changes in South African Covid-19 lockdown levels from level 1 in April 2021, increasing up to level 4 in June/July, and then back to level 1 from October 2021. The uncertainty of the impact of the Omicron variant from early November 2021 contributed to the uncertainties relating to financial impact and performance.
Despite the demand for blood and blood products increasing steadily, SANBS continued to manage operations, revenue, expenses and working capital very carefully. Expenditure levels started to return to pre-Covid levels, and as elective surgeries increased after the 2020/2021 lockdown, significant efforts were implemented to increase blood collections to meet the demand and ensure that the blood supply was sufficient.
The effect of the economic hardship that started in March 2020 could, however, still be seen in the inability of private patients to pay their debt to SANBS, as well as the slow payment levels from government and government institutions.
The 2021/2022 financial year saw changes in South African Covid-19 lockdown levels from level 1 in April 2021, increasing up to level 4 in June/July, and then back to level 1 from October 2021. The uncertainty of the impact of the Omicron variant from early November 2021 contributed to the uncertainties relating to financial impact and performance.
Despite the demand for blood and blood products increasing steadily, SANBS continued to manage operations, revenue, expenses and working capital very carefully. Expenditure levels started to return to pre-Covid levels, and as elective surgeries increased after the 2020/2021 lockdown, significant efforts were implemented to increase blood collections to meet the demand and ensure that the blood supply was sufficient.
The effect of the economic hardship that started in March 2020 could, however, still be seen in the inability of private patients to pay their debt to SANBS, as well as the slow payment levels from government and government institutions.
SANBS embarked on several initiatives to improve cash collection levels, and steady increases in monthly cash collected was evident towards the latter six months of the financial year.
SANBS embarked on several initiatives to improve cash collection levels, and steady increases in monthly cash collected was evident towards the latter six months of the financial year.
SANBS, yet again managed to achieve outstanding financial results for the 2021/2022 financial year, with an overall surplus of R171.8m. The surplus achieved was R108.6m greater than the forecast surplus for the year, but represented a 18.4% decrease on the prior year surplus of R210.5m. The higher surplus than forecast is a result of a continued focus on efficiencies and strict expenditure control across the business, while striving to provide reliable and best quality service.
SANBS, yet again managed to achieve outstanding financial results for the 2021/2022 financial year, with an overall surplus of R171.8m. The surplus achieved was R108.6m greater than the forecast surplus for the year, but represented a 18.4% decrease on the prior year surplus of R210.5m. The higher surplus than forecast is a result of a continued focus on efficiencies and strict expenditure control across the business, while striving to provide reliable and best quality service.
Total gross amount due at 31 March 2022 was:
Debtors Days decreased from 161 days to 155 days, mostly due to the write-off of R168m non-government debtors older than 2018, but also due to the focused efforts on debtors by the Debtors task team that was formed in the previous financial year. This task team, which includes the CEO, CFO, Medical Director and other executives, continues to meet weekly to review the debtors balance, collections, and progress on engagements with large debtors.
Engagements include discussions with national and provincial departments of health and some medical aids to ensure timeous collections.
A renewed focus on the process improvement of the end-to-end Order-to-Collect cycle will commence in the 2022/2023 financial year.
The impact on future collections, especially from private patients, remains uncertain, especially as there is a concern that the economy will continue to deteriorate due to the pandemic and other socio-economic pressures.
Details of our results are contained in our Annual Financial Statements in the integrated report and on the SANBS website.
Total gross amount due at 31 March 2022 was:
Debtors Days decreased from 161 days to 155 days, mostly due to the write-off of R168m non-government debtors older than 2018, but also due to the focused efforts on debtors by the Debtors task team that was formed in the previous financial year. This task team, which includes the CEO, CFO, Medical Director and other executives, continues to meet weekly to review the debtors balance, collections, and progress on engagements with large debtors.
Engagements include discussions with national and provincial departments of health and some medical aids to ensure timeous collections.
A renewed focus on the process improvement of the end-to-end Order-to-Collect cycle will commence in the 2022/2023 financial year.
The impact on future collections, especially from private patients, remains uncertain, especially as there is a concern that the economy will continue to deteriorate due to the pandemic and other socio-economic pressures.
Details of our results are contained in our Annual Financial Statements in the integrated report and on the SANBS website.
The independence of our external auditors is very important and any non-audit services performed by Deloitte are approved by the Audit Committee, prior to services being rendered. During the year, Deloitte assisted with the administration of our anonymous tip-off line. Our internal audit function is outsourced to Mazars – having been appointed in this capacity since September 2019 for a period of three years. Their term expires on 31 March 2023.
The independence of our external auditors is very important and any non-audit services performed by Deloitte are approved by the Audit Committee, prior to services being rendered. During the year, Deloitte assisted with the administration of our anonymous tip-off line. Our internal audit function is outsourced to Mazars – having been appointed in this capacity since September 2019 for a period of three years. Their term expires on 31 March 2023.
Various initiatives were planned for the 2021/2022 financial year, with a focus on process improvements, identification of cost-reducing efficiencies and automation of finance processes that would lead to elimination of manual processes resulting in delays and errors. Good progress was made, especially with the completion of the new Inventory Management System.
Additional internal improvement areas were identified, with plans developed, cross-functional task teams set up and clear objectives set for the 2022/2023 financial year. Focused optimisation and business improvement efforts, specifically for the end-to-end Procure-to-Pay and Order-to-Collect process, commenced and is planned for completion within FY 2023.
With the significant change and uncertainty of the economic outlook in South Africa, and worldwide, it is now even more important to ensure efficiency and effectiveness of all processes, improvement of cash collections, tight expenditure control, and continued management of investments and cash reserves. The unprecedented increases in inflation, petrol prices and cost of living are sure to have a significant impact on the business landscape.
It will be imperative to form strategic partnerships and work together with all stakeholders in contributing to the affordability of healthcare and continued service delivery to our people. SANBS remains committed to providing trusted blood products and services to all patients at a world class level of cost and quality.
Various initiatives were planned for the 2021/2022 financial year, with a focus on process improvements, identification of cost-reducing efficiencies and automation of finance processes that would lead to elimination of manual processes resulting in delays and errors. Good progress was made, especially with the completion of the new Inventory Management System.
Additional internal improvement areas were identified, with plans developed, cross-functional task teams set up and clear objectives set for the 2022/2023 financial year. Focused optimisation and business improvement efforts, specifically for the end-to-end Procure-to-Pay and Order-to-Collect process, commenced and is planned for completion within FY 2023.
With the significant change and uncertainty of the economic outlook in South Africa, and worldwide, it is now even more important to ensure efficiency and effectiveness of all processes, improvement of cash collections, tight expenditure control, and continued management of investments and cash reserves. The unprecedented increases in inflation, petrol prices and cost of living are sure to have a significant impact on the business landscape.
It will be imperative to form strategic partnerships and work together with all stakeholders in contributing to the affordability of healthcare and continued service delivery to our people. SANBS remains committed to providing trusted blood products and services to all patients at a world class level of cost and quality.
The Finance team was under tremendous pressure with several changes in leadership and challenges around stability, capacity and continuity. Despite these pressures, management, with the support of the Audit Committee and the Board, achieved excellent results and managed to navigate these challenges skilfully. Most notable is the unqualified audit opinion that was issued for the 31 March 2022 Annual Financial Statements.
Thanks are extended to the Executive Committee for their support during the year. The dedication and tenacity of the Finance team are commendable and deserve mentioning. It is through their continued efforts that SANBS’s financial management and reporting is completed timeously and accurately, with the required governance and compliance to all applicable laws and regulations. This support is greatly appreciated during very difficult circumstances.
Very special thanks are extended to the teams from all the different business areas that worked together tirelessly to achieve the increased efficiencies and overall success of this past financial year.
We appreciate the cooperation and engagement during the year of our service providers, our medical aid partners, as well as the National and Provincial Departments of Health. We look forward to continued and renewed trusted partnerships and remain committed to living up to our purpose of being “Trusted to save lives”.
The Finance team was under tremendous pressure with several changes in leadership and challenges around stability, capacity and continuity. Despite these pressures, management, with the support of the Audit Committee and the Board, achieved excellent results and managed to navigate these challenges skilfully. Most notable is the unqualified audit opinion that was issued for the 31 March 2022 Annual Financial Statements.
Thanks are extended to the Executive Committee for their support during the year. The dedication and tenacity of the Finance team are commendable and deserve mentioning. It is through their continued efforts that SANBS’s financial management and reporting is completed timeously and accurately, with the required governance and compliance to all applicable laws and regulations. This support is greatly appreciated during very difficult circumstances.
Very special thanks are extended to the teams from all the different business areas that worked together tirelessly to achieve the increased efficiencies and overall success of this past financial year.
We appreciate the cooperation and engagement during the year of our service providers, our medical aid partners, as well as the National and Provincial Departments of Health. We look forward to continued and renewed trusted partnerships and remain committed to living up to our purpose of being “Trusted to save lives”.