HDA Annual Report

ANNUAL REPORT 2023/24 Notes to the Annual Financial Statements

Restated 2023

Figures in R’000

2024

33. Prior period errors (continued)

Statement of Financial Position - a decrease in Project Obligations (Current liabilities) by R4,2m - an increase in Receivables from exchange transactions (Other Receivables) by R4,2m - an increase Projects Payables from exchange transactions (Accruals) by R4,2m Statement of Financial Performance - an increase in Fund management fees (Revenue from exchange transactions) by R4,1m - an increase in the surplus for the year by R4,1m

Statement of changes in Net Assets -

an increase in accumulated surplus R138k

(B) Land held on behalf of others not disclosed in the financial statements

During the financial year it was discovered that a few land parcels held on behalf of HDA stakeholders were not disclosed in the financial statements. The values of these parcels at acquisition were R15m, R4.6m for land parcels in the Eastern Cape and R8.96m for a land parcel in the Western Cape.

The error has been corrected. The correction resulted in a disclosure in the notes the financial statements as follows:

Land held On Behalf Of Other State Organs

Land at acquisition

Municipal value at 31 March 2023

Property Description

Province

Eastern Cape

Rem of Ptn 19 farm Geelhouteboom 688 Humansdorp Rem of Portion 23 and Portions 41, 42 and 43 of Farm South Gorah No. 397 Remaining Extent of the farm SCHULTZ VLEY 807 Registration Division Cape RD

15 000

860

Eastern Cape

4 617

1 477

Western Cape

8 960

9 500

(C) Unrecorded Liabilities

Supplier Invoices

Management has identified cases in which work was performed in prior periods, without proper accrual of related costs incurred. Recognition of these liabilities has been accounted for as a prior period error, resulting in the accruals. Statement of Financial Position • a decrease in Project Obligations (Current liabilities) by R180k • an increase in Accruals – Payables from exchange transactions (Current liabilities) by R3.1m • an increase in Accruals – Project Payables from exchange transactions (Current liabilities) by R180k

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