SAHUC Clarifies Surplus Revenue on Audited Financial Statements

Monday, January 8, 2018

The South African Hajj and Umrah Council (SAHUC) says a revenue surplus of more then R 4 million on their 2017 audited financial statements is income received for two hajj years reflected on one report and before the money could be dispensed off during that financial year. 

The hajj body has come under severe criticism on social media questioning how SAHUC could “justify the increase in fees with a ballooning bank balance every year.”

The post mentions that SAHUC is “supposed to be a non profit organization but the financial statements reflect otherwise.”

SAHUC’s Ml Muhammad Vaid says the surplus revenue on the audited financial statements is clearly explained in the detailed notes.

“We have been advised by our auditor, it’s an accounting anomaly that we find, where the income of two hajj are reflecting in one financial year. So basically, income has been received before it has been dispensed off in that same financial year. That is one of the main reasons why it gives you a large increase as far as what you see.” 

Ml Vaid has also confirmed that no board member of SAHUC directly benefits or receives a salary from the income generated by the Hajj body. 

“The income generated by SAHUC is only from fees, and all this is generally and basically used for the administrative costs of SAHUC as well for delivering services to hujjaj in the Kingdom of Saudi Arabia.” 

Ml Vaid says SAHUC faces many other challenges in regards to mitigation of risks which include the fluctuation of forex prices and the increasing costs in Saudi Arabia amongst others.