RAND WATER ANNUAL REPORT 2023

Consolidated Annual Financial Statements for the year ended 30 June 2023

Notes to the Consolidated Annual Financial Statements 23. Revenue (Continued)

Figures in Rand thousand INDUSTRIES /RAILWAYS

2022

Total

Gauteng North West Free State

Other

Water debtors Potable Water

35 244

-

-

-

35 244

Non‑Potable Water

-

-

-

-

-

Construction Projects

-

-

-

-

-

Operating and Maintenance

-

-

-

-

-

Meter installations

-

-

-

-

-

Training and consulting

-

-

-

-

-

Total Revenue

35 244

-

-

-

35 244

Timing of revenue recognition Over time

35 244

-

-

-

35 244

35 244

-

-

-

35 244

Revenue Customer Performance Performing

35 244

-

-

-

35 244

35 244

-

-

-

35 244

In line with the accounting policy adopted, revenue of R125 million (2022: R117 million) was not recognised for those customers where the probability of default was met. Rand Water continues to actively pursue recovery of these amounts.

The collection of revenue from these customers remains a challenge. The enhancement of credit control strategies and monitoring of payment levels in this area continue to receive management attention. The revenue that was not recognized expressed as a percentage of total billed revenue for the year is 2.44% (2022: 2.02%). The Group’s collection and revenue management strategy, which includes these customers, continues to be implemented (refer to Note 42 for more detail).

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