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
2017
Figures in Rand
15.
2016
Provisions (continued)
Reconciliation of provisions – 2016
Opening
Balance
8 579 606
FTC employee long term incentive
Non-current liabilities
Current liabilities
Reversed
Additions during the
Total
year
7 623 638 (3 252 807) 12 950 435
1 376 917
14 837 267
16 214 184
1 877 663
11 072 772
12 950 435
The Fixed Term Contract (FTC) employee long-term retention incentive represents management’s
best estimate of SALGA’s liability under year two of the retention incentive scheme. The FTC retention
incentive scheme only vests to FTC employees provided the employee’s performance is acceptable in
terms of SALGA’s merit based rating matrix. Should the employee remain in the employ of SALGA for
a period exceeding three years, the incentive shall vest to the employee.
There is no change on the basis used to calculate the entity’s obligation on the retention scheme.
16.
Trade and other payables from exchange transactions
Trade payables
Membership levies received in advanced
Sundry payables
Accrued leave pay
Accrued thirteenth cheque
Accrued expenses
Accrued performance rewards
Other payables (lodge cards)
8 291 463
5 727 678
812 831
15 583 065
1 866 609
12 485 004
22 421 112
5 487 646
72 675 408
7 526 788
8 002 268
861 392
14 252 436
1 800 196
8 196 016
18 871 909
4 793 761
64 304 765
17. Financial instruments disclosure
Categories of financial instruments
2017
Financial assets
Operating lease receivables – exchange transactions
Trade and other receivables from exchange transactions
Other receivables from non-exchange transactions
Cash and cash equivalents
208
At amortised
cost
43 472
62 335 998
22 354 381
130 270 369
215 004 220
Total
43 472
62 335 998
22 354 381
130 270 369
215 004 220