RAND WATER ANNUAL REPORT 2023

Consolidated Annual Financial Statements for the year ended 30 June 2023

Notes to the Consolidated Annual Financial Statements

41. Prior period errors • Related Party Disclosure

During the current financial year, it was identified that the disclosure note for related party transactions, as it relates to the transactions with the Shareholder (Department of Water and Sanitation) and other public entities within the same Ministerial control, were incorrectly calculated based on the payments report. This was driven by the 60 days payment terms wherein as at year end (30 June) the invoices for May and June were not yet due or paid. Management has reviewed and implemented corrective measures to ensure that the appropriate invoices that relate to the 12‑months financial period are disclosed. The impact of this correction on the related party note is reflected below:

Transactions with the Department of Water and Sanitation

Transactions with other public entities within the same Ministerial control

Figures in Rand thousand

As previously reported

Adjustment amount

Restated as at 30 June 2022

As previously reported

Adjustment amount

Restated as at 30 June 2022

Purchases of Water Other purchases

6 033 710

539 206

6 572 916

266 343

(102 025)

164 318

-

3 421

3 421

-

-

-

Payables

1 381 657 (1 381 657)

- -

25 539

(231)

25 308 12 406

Other Payables

-

-

-

12 406

Figures in Rand thousand

Transactions with the Department of Water and Sanitation

Transactions with other public entities within the same Ministerial control

As previously reported

Adjustment amount

Restated as at 30 June 2021

As previously reported

Adjustment amount

Restated as at 30 June 2021

Purchases of Water Other purchases Debt written off

6 512 715

(496 871)

6 015 844

235 757

(83 409)

152 348

- -

- -

-

- -

- -

- -

14 360

Payables

1 184 056

157 481

1 341 537

13 616

1 900

15 516

Other Payables

-

-

-

-

-

-

•

Assets under constrution (AUC)

The entity reviewed the assets under construction to verify that the costs that have been capitalised against AUC are costs that are directly attributable to the costs of bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. • review the specific constructed asset to determine if the asset will still derive any future economic benefits, as initially assessed by management in its current form aligned to changes and or developments that have occurred since its construction begun.

296