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 (Continued)

Figures in Rand thousand

Group

Rand Water

2023

2022 Restated *

2023

2022 Restated *

• The review process resulted in a R54.1 million retrospective adjustments in the current annual financial statements. The impact has been detailed below: • Facilitiies usage Rand Water owns residential houses that are based within the water treatment facilitities, and are occupied by the employees who work within the Organisation. During the current year it was identified that part of the costs allocated to Cost of Sales relates to the facilities usage within the Rand Water’s residential accomodation, therefor misclassisfied within Cost of sales.

This correction has resulted in a reclassification of costs from cost of sales to other operating expenditure.

The correction of the error(s) resulted in adjustments as follows:

Profit or Loss Depreciation Amortisation

3 259

2 506

3 259

2 506

27

23

27

23

Labour

5 947

5 786

5 947

5 786

Other expenses Cost of sales

71 954

65 916

71 954

65 916

(81 187)

(73 697)

(81 187)

(73 697)

-

534

-

534

Reconciliation of the effects of the adjustments in the statement of financial position at 30 June 2022 Figures in Rand Thousand As previously reported 2021 Adjustments Net Profit adjustment

Restated as at 30 June 2022 12 855 861 (3 536 074) 2 964 892

Assets under construction Trade and other payables Trade and other receivables

12 910 522 (3 557 470) 2 964 807 (32 071 909)

(54 127)

(534)

21 396

- -

85

Retained income

32 646

534 (32 038 729)

Reconciliation of the effects of the adjustments in the statement of financial position at 30 June 2021 Figures in Rand Thousand As previously reported

Adjustment Restated as at 30 June 2021

Assets under construction Trade and other payables Trade and other receivables

14 268 768 (3 198 851) 2 394 971 (28 609 724)

(54 127)

14 214 641

21 396 (3 177 455)

85

2 395 056

Retained Income

32 645 (28 577 079)

297