First surplus for Athletics SA since 2007
ASA settled two major debts that had threatened to bankrupt it recently: R10.4m it was ordered to pay injured pole-vaulter Jan Blignaut, and R6m owed to SARS
Athletics SA (ASA) posted an R18m surplus in 2016, to transform a R13.2m accumulated deficit into a cumulative excess of nearly R5m.
In 2015, ASA’s total liabilities outstripped assets by R12.89m‚ but as at December 31 2016, assets led by R4.81m.
Total income for 2016 rocketed to R85.78m‚ an increase of just more than R68m on the R17.72m, the nonprofit company had pocketed the previous year. This is according to the audited financial statements the national federation sent to members ahead of the general meeting in October.
It is also the first time ASA‚ struggling for the past decade‚ has surpassed the R42m income of 2007.
"The [R18m] surplus is mainly generated because of an adjustment of R2.69m for the VAT account adjustment, which was negotiated with [the South African Revenue Service] 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 R3m grant.
Apart from R2m from the government‚ the ASA statements did not provide further detail of the revenue‚ although a board member said this included a fee for hosting the African championships in Durban in 2016 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 breakthrough was settling two major debts that had threatened to bankrupt the federation in recent years — the R10.4m ASA was ordered to pay by a court to injured pole-vaulter Jan Blignaut‚ and R6m owed to the Revenue Service.
Of total income‚ R67.48m was listed as revenue (compared to R17.52m in 2015) and R18.21m as other income (R151‚479 in 2015).
Investment income was R91‚000 (R50‚000 in 2015).
Event expenses totalled R55m‚ 81.5% of revenue‚ compared to R8.3m in 2015‚ when it was just 47.4% of revenue. Operating costs in 2016 were R12.64m‚ more than double in 2015.
The biggest operating expenses were employee costs of R3.76m‚ insurance of R2.04m‚ printing and publications of R1.84m and local travel at R1.02m‚ with the latter three showing a R2.58m increase on the previous year.