Chief Financial Officer’s review
Current liabilities
Current liabilities are comprised primarily
of Trade and other payables at R72.7 million
(2016: R64.3 million). These are trade creditors and
accruals that are payable in the ordinary course of
business, usually 30 days from statement date or
fulfilment of a particular deliverable by a supplier.
Included in current liabilities are other current
liabilities such as Unspent conditional grants that
constitute R10.0 million (2016: R1.3 million) of
the total current liabilities. Unspent conditional
grants do not require extinguishing through
payment; rather these are extinguished by
fulfilment of the conditions of the grants.
Non-current liabilities
government sector for the betterment of service
delivery. The research on the paid services
concept has been completed and benchmarked
against sister organisations internationally. The
organisation is assessing the delivery model for
the envisaged tailor-made services to members.
As SALGA forges ahead with its new strategy
from 2017 to 2022, the organisation is embarking
on a major capital asset acquisition strategy
aimed at enhancing the organisation’s balance
sheet. The strategy encompasses the acquisition
of SALGA’s administrative buildings on a phased
approach, with the objective of stimulating cash
flow which is paramount in complementing
the paid services model, as well as injecting
more funding into the programmes that directly
benefit SALGA’s membership.
Non-current liabilities consist of the long-
term portion of the finance lease obligation,
operating lease liability, provisions and post-
employment medical benefit. These amount to
R7.0 million as at the end of the reporting period
(2016: R5.8 million). Conclusion
Outlook for the year ahead I also extend my appreciation to the finance
and corporate services team for their immense
contribution during the year.
The organisation developed a funding model
that was adopted by members during the
national members assembly (NMA) held on