ASA stays in the red despite R3m boon

ATHLETICS SA (ASA) posted a R3-million surplus for 2015 — thanks largely to an accounting correction on the previous year’s books — but that barely made a dent on the cashstrapped federation’s accumulated deficit, which sits at R13.2-million.

The annual report for 2015, to be submitted for discussion at ASA’s annual general meeting on July 2, highlights that total liabilities outstrip its assets by R12.89-million.

“The ability of the company to continue as a going concern is dependent on a number of factors,” the directors admit in their report.

“The most significant of these is that the directors continue to procure funding for the ongoing operations for the company and that the subordination agreement . . . remain in force for so long as it takes to restore the solvency of the company.”

The auditors said a correction of R2.18-million had been made. In the 2014 financials, R13-million was earmarked for a court settlement and legal costs after the organisation had been ordered to pay R10.4-million to Jan Blignaut, a pole vaulter who suffered permanent injury during competition in 2009.

Revenue grew to R17.5m, and operating expenses, in reality, grew to R8.44m

ASA had stopped paying insurance at that stage. In chaos by 2013, the body failed to defend the Blignaut action, losing by default judgment.

The R2.18-million adjustment counted as a positive on the ASA books. The federation’s revenue grew to R17.5-million from R10.5-million.

Although the source of income was not divulged, the directors said in the report “the increase in sponsorships is mainly due to amounts received from the National Lotteries and licences from Old Mutual”.

It is common knowledge that ASA also receives broadcast rights from the SABC for events like Comrades and Two Oceans marathons.

Operating expenses dropped to R6.26-million from R8-million, but this was distorted by the adjustment.

Take that away and expenses actually swelled to R8.44-million.

There was cost-cutting on items such as insurance (down R268 000 to R1.1-million), employee costs (down R98 000 to R3.46-million), accommodation and meals (down R34 000 to R237 000), bank charges (down R9 200 to R40 000) and cleaning (down R194 to R15 431).

But up went expenses such as printing and publications (up by R717 311 to R785 955), local travel (up by R182 000 to R419 000), consulting fees (up by R155 000 to R172 900), computers (up by R121 377 to R311 578), security (up by R51 469 to R192 000), telephone and fax (up by R23 630 to R151 600), repairs and maintenance (up by R11 858 to R103 780) and even honorarium (up by R650 to R16 650).