Chief Financial Officer’s review
REVENUE
Revenue for the year amounts to R589.8 million (2016: R504.8 million).
Operating revenue
The organisation is primarily funded by membership levies that are levied to member municipalities.
For the year under review, membership levy revenue remained the main source of revenue for SALGA
with membership levies comprising 84 per cent (2016: 91 per cent) of total revenue.
Operating revenue
R million
Rendering of services - membership levies
Transfers and subsidies - Executive Authority
Revenue from non exchange transactions
Revenue from capacity building programmes
- exchange transactions
Delegate registration fee revenue - exchange
transactions
Other revenue from exchange transactions
Total operating revenue
2017
2016
2015
% change % change
429.1
7.6
7.2
26.9
220.1
(65.7)
12.3
54.1
83.5
2017
495.0
29.5
34.8 2016
460.1
9.2
22.6 7.3 5.3 2.4 36.4 119.3
21.4
1.8
589.8 5.4
2.2
504.8 15.1
2.0
489.6 294.0
(17.2)
16.8 (63.9)
9.2
3.1
Operating revenue distribution is as follows:
Membership levy revenue increased by
7.6 per cent to R 495.0 million, largely
due to inflationary adjustment as well
as the organic growth in the number of
budgeted municipal headcount.
A strong growth in total operating
revenue is underpinned by an increase
that is over 100 per cent for transfers and
subsidies from the Executive Authority
to R29.5 million (2016: R9.2 million)
and delegate fees from exchange
transactions to R21.4 million (2016:
R5.4 million).
Revenue
from
non
exchange
transactions increased by 54.1 per cent
due to resources leveraged from the
LGSETA for the ICIP roll out.
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