HDA Annual Report

ANNUAL REPORT 2023/24

Notes to the Annual Financial Statements

Restated 2023

Figures in R’000

2024

10. Payables from exchange transactions (continued)

The leave payable on termination is expected to realise during the 2024 financial year. The leave on termination was not discounted as the amount is already reflected at its present value at the reporting date and that the impact of discounting is (impractical as time is uncertain) and immaterial. When the amount payable for leave is calculated, it is based on the employees’ salary scales as at the reporting date, but when the payable realises during the 2024 financial year, it may realise at the employees’ new salary scales as per the HDA Human Resources policy. Retentions The agency raised retention fees on the value of work done as at 31 March 2024. There are two types of contracts in use for the agency’s projects that is JBCC and GCC contracts. The retention fee rate for JBCC and GCC is 5% and 10% of the contract value respectively.

In terms of JBCC contracts, the first 2.5% is payable at practical completion and the final 2.5% is payable at the final completion stage certified by engineers.

In terms of GCC contracts, the first 5% is payable at practical completion and the final 5% is payable at the final completion stage certified by engineers.

Details of the retention fees raised: Long term Retentions

32 038 31 536 63 574

-

Current portion Retentions

10 861 10 861

Projects obligations ^Project obligations are related to tranche payments received for future payments based on the projects agreed upon in the funding agreements. As and when the HDA incurs expenditure on a project linked to the tranche payment the project obligation amount is reduced. The amount disclosed above relates to the remaining balance of tranche payment received that have not yet been utilised.

Projects payables relates to stakeholders contractors’ invoices received for projects and not yet paid.

11. Provisions

Audit fees The HDA is statutorily required to have an audit performed annually. The provision is based on the estimates provided by the external auditors in their audit strategy and engagement letter. The audit fee is provided for work to be performed after year end.

Opening Balance

6 709

- -

Amounts charged against the provision

(6 880) 7 753 7 582

Increase in the provision

6 709 6 709

Closing Balance of the provision

133