HDA Annual Report

ANNUAL REPORT 2023/24

Notes to the Annual Financial Statements

Restated 2023

Figures in R’000

2024

26. Cash generated from operations (continued)

Movements in working capital

(1 043 328)

(103,483) (543 431)

Increase in receivables exchange transactions

(78 763) (104 099) - 12 303

(60 357) - -

Deposits with conveyancers pending land transfer Increase in receivables - Properties from exchange transactions Movement in provisions

Increase non-current payables

33 497

-

Decrease in payables - exchange transactions

(906 266)

500 305

Cash utilised in operations

(980 409)

(5 879)

27. Contingent liabilities

Contingent liabilities

157 381 157 381

267 794 267 794

Labour related matters Land related matters

- -

3 363

17 000 28 926 218 505 267 794

Other litigations

28 019 129 362 157 381

Retention of Surplus to National Treasury

Labour related matters This category primarily comprise potential liabilities from matters relating to litigation and proceedings relating to employees. The cases reported previously were ruled in favour of the Agency. Land related matters The contingent liability that existed as at 31 March 2023 related to the land dispute. Judgment was granted in September 2023 dismissing both the application and constitutional damages. Other litigations This category primarily comprise potential liabilities from matters relating to litigation and proceedings relating to service providers/suppliers. Subsequent to year-end, the Agency settled a legal matter with one of the service providers. A payment amounting to R10.2m was paid to settle the matter and this amount was subsequently removed from contingent liability disclosure. Retention of Surplus to National Treasury The HDA must annually declare all surpluses or deficits to the National Treasury each year, based on the audited financial statements. The contingent liability represents an amount that will be subject to the declaration of surplus process in line with of National Treasury Instruction no.12 of 2020/21. The amount is estimated using unaudited annual financial statements as the basis for calculation.

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