CHIEF FINANCIAL
OFFICER’S REVIEW
Nceba Mqoqi
Chief Financial Officer
OVERVIEW OF OPERATING RESULTS
Results of operations for the year ended 31 st March 2017 reflect a surplus of R15.0 million (2016:
R27.1 million).
Summary statement of financial performance
R million
Operating revenue
Operating expenditure
Operating surplus
Net non-operating revenue
Surplus for the period
2017
589.8
(593.2)
(3.4)
18.4
15.0
2016
504.8
(494.7)
10.1
17.1
27.1
2017
2016
2015
% change % change
489.6
16.8
3.1
(482.9)
19.9
2.5
6.7
(133.7)
49.9
14.2
8.0
19.8
21.0
(44.6)
29.4
Total operating revenue increased by 16.8 per cent to R589.8 million. The
increase in operating revenue is primarily due to improved exchange
revenue such as delegate fees levied for the special NMA held on 05 to 06
May 2016 and national conference held from 28 November to 2 December
2016 that increased by over 100 per cent. Further, following the local
government elections of 3 August 2016, the organisation leveraged non
exchange revenue from the Local Government Sector Education and
Training Authority for the integrated councillor induction programme
(ICIP) that contributed in an increase in non-exchange revenue increased
by over 100 percent. The growth in operating revenue was also buoyed by the
reinstatement of transfers and subsidies from the Executive Authority.
Total operating expenditure increased by 19.9 per cent to R593.2 million.
The increase in operating expenditure is primarily due to an increase in
programme implementation costs by 54.1 per cent. Salient features of
programme implementation includes the training of 8 174 councillors
through the integrated councillor induction programme. Other
contributory factors to an increase in expenditure include the convening
of provincial and national conferences that ushered in the new SALGA
leadership as well as mapped out the organisation’s focus for the next five
years with the adoption of the organisation’s strategy for the 2012 to 2022
147
SALGA ANNUAL REPORT
2016/17