1. Presentation to Portfolio Committee on Sport and Recreation
04 September 2018

2. OVERVIEW 2016/2017 Audited Financial Statements
Status of 2017/2018 Audit
Turn around initiatives and strategy
Overview of Budget and Funding 2017 to 2020
Overview of Revenue and Expenditure allocation
Recent Team SA success
Concluding remarks

3. 16/17 AUDITED FINANCIAL STATEMENT STATEMENT OF FINANCIAL PERFORMANCE
REVENUE
STATEMENT OF FINANCIAL PERFORMANCE
2017/03/31
% of total revenue
2016/03/31
% Diff
Diff Amount
REVENUES
Revenue
96%
97%
-1.1%
( )
Overall revenue has not moved significantly from the prior year. Revenue consists of grants or donations from Government, National Lotteries, IOC and Other.
Other Income 0%
-32.4%
( )
Other Income consist of advertising income, sundry income & donations, skills development and profits on foreign exchange. Note that the majority of the movement consists of the decrease in advertising income received.
Investment income and finance income 4% 2%
79.1%
This investment income relates to interest income received from the bank balance held by Sascoc. The entity earned more finance income in the current year due to the bank balance being higher throughout the year in comparison to the prior year. The increase included in this - is also an increase in the dividend income earned in Gride (consolidated financial statements) thus reasonable that this has increased.
Total revenues
100%
0.5%

4. 16/17 AUDITED FINANCIAL STATEMENT
EXPENDITURE
Current Period
Prior Period
STATEMENT OF FINANCIAL PERFORMANCE
2017/03/31
% of total revenue
2016/03/31
% Diff
Diff Amount
EXPENDITURES
Board member allowances
( ) 2%
( )
8.8%
( )
Movement appears to be reasonable.
Employee benefits expenses
( ) 7%
( ) 6%
-2.6%
Depreciation
( ) 1%
( )
5.3%
(75 891)
Profit on sale of non-current assets 0% -
This movement relates to the rights that were not taken up (i.e. therefore sold) in the investment Gride has in Phumela Gaming.
Other Operating Expenses
( )
91%
( )
90%
-7.2%
The operating expense balance has decreased in the current year. Noted that the operating expense consisted of the following categories of expenses: Federations: R Olympics R Paralympics: R Other Games: R Marketing: R Commonwealth Games: R Bidding and Hosting: General: R Overall the expenses have decreased in the current year due to the fact that in the 2016 financial year, expenses were incurred for the Olympic Games preparation as well as the Commonwealth Games. In the current year, expenses were mostly only incurred for the Olympic Games.
Finance costs
( )
( )
-85.3%
Finance costs relate to interest paid on overdrafts bank balances..
Total expenditures
( )
101%
( )
100%
-8.1%

5. 16/17 AUDITED FINANCIAL STATEMENT
ASSETS
Current Period
Prior Period
STATEMENT OF FINANCIAL POSITION
2017/03/31
2016/03/31
% Diff
Difference Amount
Cash
-10.8%
( )
This line item relates to cash held by the entity. The decease speaks to the decrease in the trade and other payables, more cash outflow. The balance is expected to fluctuate on a monthly basis.
Accounts receivable
-85.0%
( )
In the prior year accounts receivable consisted of a Vat receivable balance of R11 million, whereas in the current year this balance has reduced to R1 million. The receivable has decreased in the current year due to SARS refunding SASCOC for VAT claims from prior years. Furthermore on the prior year the entity held prepayments of R , whereas in the current year this has dropped to R This is due to there being large prepayments in the prior year to book flights and accommodation for the Olympics.
Taxation receivable
-34.5%
( )
This relates to the tax receivable on the movement in the financial assets held in Gride in the current year.
National Lotteries Commission
-46.2%
( )
This debtor relates to the National Lotteries. In the current year, the movement of R was recognised as revenue which is why the balance decreased in the current year. National Lotteries is recognized as a debtor until the cash is received from them.
TOTAL CURRENT ASSETS
-44.2%
( )
Property, Plant & Equipment (net)
-17.1%
( )
PPE increased by R due to new additions, and PPE decreased by R due to the depreciation charge recognised in the current year.
Other investment
27.9%
The increase in the other investment relates to the increase in the underlying listed investments that are held in Gride during the current financial year. An additional value of R 6 mill shares were acquired during the year, as well as a fair value gain of R13.9 million.
Investment in Subsidiaries 3 -
TOTAL ASSETS
-2.8%
( )

6. 16/17 AUDITED FINANCIAL STATEMENT
ASSETS (cont’d)
Current Period
Prior Period
STATEMENT OF FINANCIAL POSITION
2017/03/31
2016/03/31
% Diff
Difference Amount
Payables
( )
( )
-76.4%
We noted that the reason for the decrease in payables in the current year was due to a decrease in Commonwealth Bid expenses incurred in These payables comprised R26 million of the payables as at the 2016 year end.
Deferred Revenue
( )
( )
-28.5%
Deferred revenue decreased in the current year due to the entity not entering into any new contracts in the current year, and existing deferred revenue being utilized in the current year and recognised as revenue, due to expenses being incurred against those projects.
Current portion obligation under financial lease
( )
( )
12.1%
(26 129)
Provisions
( )
( )
-52.0%
These accruals have decreased in the current year due to the expenses incurred in the current being lower overall compared to the prior years.
Long term liabilities
( )
( )
-4.9%
42 918
This loan relates to the long terms portion of the operating lease over James and Ethel Gray Park.
Deferred tax
( )
( )
20.4%
( )
The increase in the Deferred Tax Liability relates to the increase in Other financial assets due to the Fair Value Adjustment. This is resulting from the investments held in Gride Investments.
Obligations under finance lease
( )
( )
-39.6%
The movement relates to the short term portion of the lease that is payable in the next 12 months. The decrease relates to the increase in the short term portion.
TOTAL LIABILITIES
( )
( )
-41.6%

7. 2017/2018 AUDIT
The services of Deloitte has been terminated by mutual consent
Audit tender process initiated to appoint new auditors
Consideration be given to appoint mid tier firm with BBBEE credentials
Internally prepare for the 2017/2018 audit so as to reduce costs and achieve a clean audit
Audited Financial statements to be presented to council at planned AGM on 8th December 2018.

8. TURN AROUND STRATEGY Appointed a new Finance Head
To drive all austerity measures
Streamline financial reporting to be more meaningful and with greater accuracy
Enhance business processes to achieve higher levels of governance and internal controls
Review all commitments to negotiate better economies of scale
Streamline expenditure
Prepare for the 2017/2018 audit
Appointed a sponsorship expert on a non exclusive and contingency fee basis

9. TURN AROUND STRATEGY (cont’d)
Formation of the Turnaround Strategy Management Committee
Monitor and regulate the turnaround strategy measures
Further enforce good governance and rebuild the image of SASCOC
Drive the sponsorship and fund raising initiatives
Guide SASCOC’s investment activities so as to achieve the best returns
Regulate the alignment of all policies to the amended constitution adopted on 8th June 2018
Oversee the restructuring process intended to improve efficiencies and effectiveness
Monitor the improvement of standard operating procedures intended to improve internal controls
Enforce the development and promotion of High Performance
Ensure focus on delivery of Team SA

10. BUDGET

11. SPONSORSHIPS/GRANTS/DONATIONS 2017-2020

12. REVENUE 2013 TO 2017

13. EXPENDITURE ALLOCATION

14. RECENT TEAM SA SUCCESS EVENT DATE GOLD SILVER BRONZE TOTAL
RECORDS BROKEN
Commonwealth Youth Games – Bahamas
19-23 July 2017 8 3 7 18
World Games
20-30 July 2017
Winter Olympics
9-25 February 2018
Commonwealth Games- Gold Coast
4-15 April 2018 13 11 37
- Caster Semenya broke the 1500m Women race record
- Tatjana schoenmaker new record time for Africa in the 200m breaststroke 
African Youth Games – Algiers, Algeria
19-28 July 15 29

15. CONCLUDING REMARKS Government support is required to :-
Recognise and support the turnaround efforts being made by SASCOC
Increase government funding allocations
Call for the reverting of Lotto funding to its previous mandates
Previously received in excess of R100m
Now receive R10m allocation
Main change is due to SASCOC now being defined as a federation

16. “SPORTS HAS THE POWER TO CHANGE THE WORLD………………………………”
Least we forget……
“SPORTS HAS THE POWER TO CHANGE THE WORLD………………………………”
Thank you