1. FINANCIAL STATEMENTS 2003/2004

2. Financial Statements of SALGA are audited in terms of PFMA
SALGA obtained an unqualified audit report

3. REVENUE SALGA received the following income:
28% of the total income from equitable share.
19% the total income was derived from donor funded projects.
51% of the total income received was from Municipal Levies

4. The chart below graphically depicts SALGA’s Key income sources for the Financial Year 2003/04.

5. KEY OPERATING EXPENSES
Salaries:due to the nature of its products and services SALGA is dependent on human intellectual capacity.
Provincial costs:Included in the provincial costs are salaries, travel costs, transfers to provincial offices.
Expenditure on key Priorities (See next slide on key priorities)
Other operating expenses:include inter alia travelling of SALGA Councillors and staff, telephone, printing and stationery and conference expenses

6. KEY PRIORITIES
During the year a number of key priorities were undertaken, the following is a list of some of the key priorities that undertaken during the year.
The establishment of CCRA
Restructuring of the Pension Fund
A tax consultancy service for Councillors
The establishment of a Budget Office and convening Budget week meetings in all Provinces
The employment of consultants to undertake due diligence audits at the Provincial Offices
The engagement of consultants to devise a business plan for the Municipal Services Interventions Unit
The launch of KSP, District Learning Networks and Peer Reviews
The development of an Occupational Health and Safety Policy
The finalisation of the Property Rates Bill and the Municipal Finance Management Act.

7. The chart below shows a breakdown of expenses into major categories.

8. INTERNAL CONTROL
SALGA maintains a system of internal control designed to provide reasonable assurance that transactions are properly authorised and assets are adequately safeguarded.
The Office of the Auditor General reports findings and recommendations to management of SALGA.
Corrective actions are taken to address control and deficiencies and improve the systems as identified.
The Audit Committee provides oversight to the financial reporting process and Internal Controls.

9. Thank You!