HDA Annual Report

ANNUAL REPORT 2023/24

Accounting Policies

reasonable care been exercised. Fruitless and wasteful expenditure is recorded in the notes to the financial statements when incurred and confirmed. The amount recorded is equal to the total value of the fruitless and wasteful expenditure incurred. The expenditure is removed from the notes to the financial statements when it is resolved or transferred to receivables for recovery. Fruitless and wasteful expenditure receivables are measured at the amount that is expected to be recoverable and are derecognised when settled or subsequently written-off as irrecoverable. Irregular expenditure as defined in section 1 of the PFMA is expenditure other than unauthorised expenditure, incurred in contravention of, or that is not in accordance with a requirement of any applicable legislation, including but not limited to the following: (a) the PFMA; (b) the Treasury Regulations; (c) a National Treasury Instruction, issued in terms of section 76 of the PFMA; and (d) a Provincial Treasury Instruction issued in terms of section 18(2)(a) of the PFMA. Irregular expenditure is recorded in the notes to the financial statements when incurred and confirmed. The amount recorded is equal to the value of the irregular expenditure incurred unless it is impracticable to determine, in which case reasons are therefore provided in the note. Irregular expenditure is removed from the irregular expenditure register and annual report when it is either condoned by the relevant authority or removed by the accounting authority in terms of paragraph 5.8 of the National Treasury Instruction Note No. 4 of 2022/23. 28. Irregular expenditure

Initial recognition and measurement

Project obligations are recognised as a current liability to the extent that the HDA is obliged to deliver a service of equal value to the project funder or repay the amount received if project is not delivered. Project funds are kept separately and any interest accrued on the funds is due to the project funder. These project funds are matched to the project expenses until the project is completed and closed off.

Subsequent measurement

Project obligation is subsequently measured at cost plus interest earned.

25. Financial Risk Management

The Agency has limited exposure to financial risks as a consequence of its operations. Namely, liquidity risk, credit risk and interest rate risk. The Agency’s overall risk management focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on its performance. Financial risk management is carried out under approved finance policies that ensures financial practices directed as minimising the identified risks in relevant areas. The HDA is typically subject to budgetary limits in a form of appropriations or budget authorisations (or equivalent), which is given effect through authorising legislation, appropriation or similar. General purpose financial reporting by the entity shall provide information on whether resources were obtained and used in accordance with the legally adopted budget. 26. Budget information

29. Comparative Information

27. Fruitless and wasteful expenditure

Prior year comparatives

Fruitless and wasteful expenditure as defined in Section 1 of the PFMA means expenditure which was made in vain and would have been avoided had

When the presentation or classification of items

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