South African Local Government Association
Schedule 3A public entity i.t.o. the Public Finance Management Act, 1999 and recognised i.t.o. the
Organised Local Government Act, 1997
Annual Financial Statements for the year ended 31 March 2017
Notes to the Annual Financial Statements
Figures in Rand
8.
2017
2016
Trade and other receivables from exchange transactions (continued)
The carrying amount of trade and other receivables that are past due and have re-negotiated settlement
terms amount to R 2 197 068 (2016: R 1 095 327)
Trade and other receivables past due but not impaired (exchange transactions):
As of 31 March 2017, trade and other receivables of R 52 738 763 (2016: R 56 531 708) were impaired
and provided for.
The ageing of impaired amounts is as follows:
Not more than 30 days
More than 30 days but not more than 60 days
More than 60 days but not more than 90 days
More than 90 days but not more than 120 days
More than 120 days
150 726
439 540
-
-
52 148 497
52 738 763 -
-
49 505
-
56 482 203
56 531 708
56 531 708
52 738 763
(1 034 140)
(55 497 568)
52 738 763 42 253 145
56 531 708
-
(42 253 145)
56 531 708
Reconciliation of allowance account for doubtful debt
Opening balance
Increase in allowance for impairment
Amounts written-off as uncollectable
Unused amounts reversed
The creation and release of allowance for impaired receivables have been included in operating
expenses in surplus or deficit (note 22).
The maximum exposure to credit risk at the reporting date is the fair value of each class of loan
mentioned above. SALGA does not hold any collateral as security.
SALGA is exposed to credit risk as a result of transactions entered into with customers on extended
payment terms, and cash and cash equivalents held with commercial banks that may not be able to
produce cash on demand.
SALGA manages these risks by independent checks and only using commercial banks approved by
the National Treasury. No changes occurred in the management of these risks from the prior year
202