Chief Financial Officer’ s review
NON-OPERATING REVENUE AND EXPENDITURE
Net non-operating revenue grew by 8.0 per cent to R18.4 million( 2016: R17.1 million) mainly due to stable average cash and cash equivalents held throughout the year.
Non-operating revenue
Net non-operating revenue |
R million |
2017 |
2016 |
2015 |
2017 % change |
2016 % change |
Investment revenue |
19.9 |
18.1 |
13.1 |
10.0 |
37.7 |
Finance costs |
( 1.5) |
( 1.0) |
( 1.1) |
42.5 |
( 7.0) |
Net non-operating income |
18.4 |
17.1 |
14.2 |
8.0 |
19.8 |
Investment revenue increased by 10.0 per cent to R19.9 million, the growth has been buoyed by positive cash balances maintained during the year. Finance costs increased by 42.5 per cent to R1.5 million( 2016: R1 million).
COMPARISON OF ACTUAL OPERATING RESULTS AGAINST ADJUSTED BUDGET
The SALGA budget is prepared on an accrual basis which is comparable with the financial statements. The original budget for 2016 / 17 was approved by the Accounting Authority on 29-30 March 2016. The first adjusted budget for 2016 / 17 was approved by the Accounting Authority on 14 March 2017 and the final adjustment budget for 2016 / 17 was approved with the annual financial statements on 26 May 2017.
The budgets mentioned above cover the periods 1 April 2016 to 31 March 2017. The budget is prepared on the accrual basis using a classification based on the nature of expenses in the statement of financial performance.
Comparison of actual operating results against adjusted budget |
2017 |
R million |
Actual |
Budget |
Variance |
Variance % |
Revenue |
589.8 |
590.9 |
( 1.1) |
( 0.2) |
Expenses |
593.2 |
604.4 |
11.2 |
1.9 |
Non-operating revenue |
18.4 |
18.1 |
0.3 |
1.5 |
Operating surplus |
15.0 |
4.6 |
10.4 |
223.6 |
The operating surplus for the year ended 31 March 2017 is R15.0 million versus the budgeted R4.6 million resulting in a positive variance of R10.4 million.
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