Athletics South Africa (ASA)‚ in a sea of debt just one year before‚ posted an R18 million surplus in 2016 to transform a R13.2 million accumulated deficit into a R4.81-million cumulative excess.
In 2015 ASA’s total liabilities outstripped assets by R12.89 million‚ but as at December 31 last year assets led by R4.81 million.
Total income for 2016 rocketed to R85.78 million‚ an increase of just more than R68 million on the R17.72 million the non-profit company had pocketed the previous year‚ according to the audited financial statements the national federation sent to members ahead of the general meeting next month.
It’s also the first time ASA‚ struggling for the past decade‚ has surpassed the R42 million income of 2007.
Of total income‚ R67.48 million was listed as revenue (compared to R17.52 million in 2015) and R18.21 million as other income (R151‚479 in 2015).
Investment income was R91‚000 (R50‚000 in 2015).
Event expenses totalled R55-million‚ 81.5% of revenue‚ compared to R8.3-million in 2015‚ when it was just 47.4% of revenue.
Operating costs in 2016 were R12.64-million‚ more than double in 2015.
The biggest operating expenses were employee costs of R3.76-million‚ insurance of R2.04-million‚ printing and publications of R1.84-million and local travel at R1.02-million‚ with the latter three showing a R2.58-million hike on the previous year.
“The [R18-million] surplus is mainly generated because of an adjustment of R2.69-million for the VAT account adjustment which was negotiated with SARS and bigger sponsorships and grants received‚” ASA vice president Dr Harold Adams said.
“The increase in sponsorships is mainly due to amounts received from the National Lotteries [Commission‚ NLC] and licences from Old Mutual.”
The NLC annual report for 2016 showed ASA was given a R3-million grant.
Apart from R2-million from government‚ the ASA statements did not provide further details of the revenue‚ although a board member said this included a fee for hosting the African championships in Durban last year as well as dollar payments from the world governing body‚ the IAAF.
Some board members had also secured unofficial sponsorship grants through business connections‚ he added.
A major breakthrough was settling two major debts that had threatened to bankrupt the federation in recent years — the R10.4-million ASA was ordered to pay by a court to injured pole-vaulter Jan Blignaut‚ and R6-million owed to SARS.
- TimesLIVE
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