Chief Financial Officer’s review
EXPENDITURE
Expenditure for the year amounts to R593.2 million (2016: R494.7 million).
Total operating expenses
Operating expenditure by nature
R million
Employee related costs
Programme costs
Administrative overheads
Depreciation and amortisation
Other operating expenses
Total operating expenditure
2017
72.6
381.9
44.6
6.6
87.5
593.2
2016
63.9
310.1
52.8
7.6
60.3
494.7
2017
2016
2015
% change % change
59.5
13.5
7.5
298.9
23.1
3.7
54.4
(15.5)
(3.0)
7.4
(12.6)
2.2
62.6
45.0
(3.6)
482.9
19.9
2.5
Relative to total operating expenditure programme costs comprise 64 percent (2016: 63 percent) of total
operating expenditure. Programme costs consists of (i) direct programme costs and (ii) programme
implementation costs.
Programme costs are incurred in
pursuance
of
the
organisations
mandate, namely:
(i) lobbying,
advocacy
and
representation;
(ii) employer role;
(iii) capacity building;
(iv) providing support and advice;
(v) strategic profiling of the local
government sector; and
(vi) knowledge and information
sharing.
Programme
costs
increased
by
23.1 per cent to R381.9 million
(2016: R310.1 million).
Administrative overheads decreased
by 15.5 per cent to R44.6 million
(2016: R52.8 million), largely due to
implementation of cost containment
measures.
Depreciation
and
amortisation
decreased by 12.6 per cent to R6.6 million
(2016: R7.6 million), mainly due to the
review of the estimated remaining
useful life for IT equipment.
SALGA maintains a procurement and provisioning system
that is fair, equitable, transparent, competitive and cost-
effective.
Other operating expenses increased
by 45. per cent to R87.5 million
(2016: R60.3 million).
151
SALGA ANNUAL REPORT
2016/17