HDA Annual Report

ANNUAL REPORT 2023/24 Notes to the Annual Financial Statements

Restated 2023

Figures in R’000

2024

3. Receivables from exchange transactions (continued)

In line with the GRAP requirements, we’ve assessed whether the accounts receivables are impaired or not. The assessment of impairment and recoverability of these amounts (financial assets) has been performed in line with objective indicators mentioned in the GRAP statement. The provision includes R60.4m expenditures incurred in the previous financial periods where funders and projects principals have not accepted nor confirmed their liabilities thus indicating that the recoverability of the amount is questionable. The Agency is in the process of negotiating with the National Department and National Treasury to request to utilise interest income generated on the capital projects funds held by the Agency to close off the deficits for these old projects. The balance of the provision relates mainly to outstanding rentals from tenants. The factors considered in determining impairment on receivables from tenants included observing the tenants’ payment patterns and historical information about their default status.

4. Operating lease payable

Liability due to straight lining

672

1 061

Operating leases are recognised on the straight-line basis as per the requirement of GRAP 13. In respect of the Operating Lease the following assets have been recognised:

Obligations under operating leases - Lessee The future minimum office lease payments escalation ranges between 0% and 10% p.a.

Eastern Cape - East London Office The future minimum office lease payments, which escalate at 7% p.a. are as follows:

3 171 1 532 1 639

4 603 1 432 3 171

Not later than 1 year

Later than 1 year but not later than 5 years

Free State The future minimum office lease payments, which escalate at 8% p.a. are as follows:

713 713

1 639

Not later than 1 year

914 725

Later than 1 year but not later than 5 years

-

Gauteng The future minimum office lease payments, which escalate at 7% p.a. are as follows:

34 550

1 202 1 202

Not later than 1 year

6 765

Later than 1 year but not later than 5 years

27 785

-

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