FINANCE
The primary objective of the Finance division is to provide
management with timeous and accurate financial and other information
in order to facilitate the decision making process.
The Corporation is unique in that virtually the entire operation
of its main business is run by an agent. During the year under
review, the Corporation succeeded through negotiations to limit
the increase in operating expenditure to a rate lower than the
average inflation rate.
During the year under review, fare revenue of R330m was collected
by the agent and paid to the Corporation. The development of an
income system whereby each station would be able to deposit fare
revenue directly into the bank account of the Corporation, is
in progress.
The fixed assets were subjected to a physical verification procedure
during the year and adjustments where deemed necessary were effected
to the asset valuations. Capital expenditure during the year amounted
to R140m compared to a budgeted R214m. Insurance against loss
or damage to assets was obtained and is being managed by an insurance
broker.
An internal insurance fund was created, which contributed to
the minimising of the insurance premium and formed part of the
insurance policy.
Treasury activities were limited to bridging finance and maintenance
of existing loans.
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