RAND WATER ANNUAL REPORT 2023

Consolidated Annual Financial Statements for the year ended 30 June 2023

Notes to the Consolidated Annual Financial Statements (Continued)

Figures in Rand thousand

Group

Rand Water

2023

2022 Restated *

2021 Restated *

2023

2022 Restated *

2021 Restated *

21. Contract liabilities Summary of contract liabilities Unconditional right to contractual obligation ‑ recoverable projects

20 205

45 859

42 525

20 205

45 859

42 525

Amounts received in advance

114 138 145 071 458 208 114 138 145 071 458 208 134 343 190 930 500 733 134 343 190 930 500 733

Reconciliation of contract liabilities Opening balance Revenue recognised from funds received in advance

190 930 500 733 240 279 190 930 500 733 240 279

(39 650) (190 992)

(25 571) (68 077)

(132 016) (158 517)

(39 650) (190 992)

(25 571) (68 077)

(132 016) (158 517)

Project revenue generated

Project billing

174 055 (216 155) 550 987 134 343 190 930 500 733 134 343 190 930 500 733 550 987 174 055 (216 155)

Included in the balance of R134 million are balances of amounts received in advance such as the R51 million relating to the Sedibeng Regional Sewer Scheme Project, R22.6 million for the BBR Phase 2 Reticulation project and R20.9 million for the DBE COVID‑19 project. For the year ended 30 June 2022 a balance of R191 million are balances of amounts received in advance for multiple projects that the entity is executing such as the Emfuleni Local Municipality Section 63 Intervention Project of R31 million, the DBE Covid‑19 project R52 million and the DWS Covid‑19 project a balance of R10 million. For the year ended 30 June 2021 included in the balance are amounts received in advance of totalling R500.7 million relating to the Eastern Cape Water Supply Emergency Project of R41.8 million and R313.1 million from the Water Provision Solutions for Gauteng Department of Human Settlement. For the year ended 30 June 2022, a refund was processed during the current financial year to the Gauteng Department of Human Settlements for the provision of water to Informal Settlements Project and DWS for the Eastern Cape Drought Relief Projects. 22. Investment on behalf of subsidiary Investment on behalf of a subsidiary is made up of investment held on behalf of Rand Water Foundation which is an interest‑bearing instrument and payable on demand. As at 30 June 2023, the balance for the investment held on behalf of Rand Water Foundation was R0 million (2022: R4 million and 2021: R4 million) following the withdrawal of the full amount during November 2022.

Investment on behalf of subsidiary

-

-

-

-

4 018

4 013

269