Chief Financial Officer’s review
political term of office. SALGA’s financial performance is adequate and the reported performance
against pre-determined objectives demonstrates that the organisation is able to execute its mandate
in an economic, efficient and effective manner.
Net non-operating revenue increased by 8.0 per cent to R 18.4 million, largely due to positive cash and
cash equivalents held throughout the year.
KEY FINANCIAL INDICATORS
R million
Financial indicators
- Membership levy revenue
- Government grant - Executive Authority
- Direct programme costs as a percentage of employee related costs
- Administrative employee costs as a percentage of employee related costs
- Programme implementation costs as a percentage of operating expenses¹
- Gross programme costs as a percentage of operating expenses¹
- Total employee related costs as a percentage of operating expenses¹
Profitability ratio
- Net surplus margin
Liquidity ratio
- Current ratio
Solvency ratio
- Solvency ratio
- Debt/equity ratio
- Asset coverage rate (times)
Activity ratio
- Debtor collection period - after impairment (days)
- Debtor collection period - before impairment (days)
- Creditor payment period (days)
- Membership levy payment levels rate (%)
2017
2016
2015
495.0 460.1 429.1
29.5
9.2 26.9
78%
78%
78%
22%
22%
22%
21%
16%
19%
65%
64%
63%
56% 60%
57%
3.0%
5.9% 4.4%
224% 238% 180%
2.45
4.6%
23 2.64
4.2%
25 1.99
5.3%
20
36
73
21
87% 45
89
24
85% 28
62
40
88%
¹ Excludes depreciation and amortisation
MEMBERSHIP LEVY
The applicable membership levy formula for the year under review and ensuing financial years is as
follows:
Metropolitan municipalities
Local and district municipalities
Membership levy formula
Flat rate plus 1 percentage point above CPI
1% of annual salary budget with a minimum of
R500 000
Membership levy revenue comprises a majority of SALGA’s revenue streams, the payment levels rate
for membership levies remains a key performance indicator for the organisation, as it determines the
tempo of programme roll out and the organisations operational sustainability.
MEMBERSHIP LEVY PAYMENT LEVEL RATE
As at 31 March 2017 the overall payment levels for membership levies stood at 87 per cent (2016: 85 per
cent). The collection rate for the current year remained within budget at 90 per cent (2016: 89 per
cent).
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