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)

(E) Funds held in trust account

In March 2020, the Agency entered into an agreement with the Gauteng Department of Human Settlements to facilitate the transfer of service stands in the names of beneficiaries. The HDA paid the full purchase price amounting to R59 409 488 on 17 Dec 2020 into the conveyancer’s bank account. As at 31 March 2023, not all the funds had been paid by the conveyancer to the seller, pending the issuance of Section 82 certificates. At year end, the balance in the Conveyancer’s account was R34,5m. The Agency did not record a net interest income (interest income less legal practice fees) amounting to R3,2m in relation to the interest accrued and other fees while the funds were held in the conveyancer’s bank account. The error has been corrected by restating each of the affected financial statement line items for the prior periods as follows: Statement of Financial Position - an increase in Receivables: stakeholders from exchange transactions (Current assets) by R3,2m - an increase in Funds held in the trust-Conveyancers (Current assets) by R34,5m - an increase in Land liability (Current liabilities) by R34,5m - an increase in Project Obligation (Current liabilities) by R3,2m

The items were restated as follows:

1. Statement of financial position

As previously

Reference

As restated

reported Adjustments

Total assets

553 576 553 576

42 045 42 045

595 621 595 621

Current assets

Funds paid to Conveyancers: Principal agent Receivables from exchange transactions

492 045 103 576

E

457 460 96 116

34 585

A&E

7 460

Total liabilities

(1 790 950)

(42 270)

(1 831 931)

Current Liabilities

(1 790 950)

(42 270) (34 585)

(1 831 931) (492 045) (129 925)

Land liability: Principal agent

E

(457 460) (126 783)

Payables from exchange transactions Projects Payables from exchange transactions

C1

(3 142)

C2 + A

(460 255) (746 452)

(4 384)

(464 639) (745 322)

Project obligations Operating leases

C/A

1 130

-

(1 289)

(1 289)

Net Assets

(270 549)

225

(270 324)

160