Services in-kind received from the Bill and Melinda Gates Foundation (BMGF) were previously disclosed in the Notes to the Financial Statements. The services in-kind received from BMGF are significant to SAHPRA’s operation and the service delivery objectives. Based on the significance of the services, the prior period disclosure was insufficient as the recognition of the services in-kind needs to be recognised on the face of the Statement of Financial Performance.

The clearing of the deferred income qualification has resulted in the re-classification of deferred income balances that relates to backlog but were previously disclosed under normal business operations. Previous services rendered in the backlog project were not allocated to payments received and this has resulted in an understatement in prior year’s revenue recognised. The clearing excercise also resulted in reclassification between unallocated deposits received and income received in advance.

Recognition of revenue for Inspection fees were reversed due to apply SAHPRA’s revenue recognition policy – date of report versus date of inspection – as the revenue recognition point. Additional retention fees were recognised and a receivable was raised after a completeness of register test was performed.

Certain claims from local evaluators paid in the Backlog reduction project were incorrectly processed to the current year instead of the prior year. This resulted in additional expenditure in the prior year.

Commitments relating to office accomodation was restated after taking into account the leasehold improvements not previously taken into account.

The correction of the error(s) results in adjustments as follows: