Assets & GRAP
Non-Exchange Revenue under GRAP 23
Recognition of taxes, fines and transfers as non-exchange revenue against GRAP 23 conditions.
Why GRAP 23 recognition matters
GRAP 23 governs non-exchange revenue such as property rates, fines, and government transfers, where the municipality receives value without giving approximately equal value in return. Recognising these too early, or failing to account for conditions that create a liability, misstates both revenue and the surplus the AGSA audits. AuditPro Core tests rates, fines and transfer recognition against the GRAP 23 conditions so non-exchange income is stated correctly.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Non-Exchange Revenue
R 894 m
GRAP 23 scope
Property Rates
R 512 m
57% of stream
Liability vs Revenue
R 22 m
conditions unmet
Fines Recognition Rate
31%
▼ realisation low
Non-exchange revenue recognition (R m)
GRAP 23 stream analysis
| Stream | Recognised (R m) | Recognition Basis |
|---|---|---|
| Property rates | 512 | On levy |
| Traffic fines | 38 | On collection |
| Conditional grants | 286 | When conditions met |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Non-exchange revenue defined
This is revenue where no roughly equal exchange occurs, including taxes, rates, fines and grants. It is the largest revenue source for many municipalities and is recognised under different rules to exchange revenue.
Conditions create liabilities
Where a transfer carries a condition that obliges return of unspent funds, GRAP 23 requires a liability rather than immediate revenue. Recognition occurs only as the condition is satisfied.
Measurement of rates and fines
Rates revenue is recognised when the levy is enforceable, and fines when collection is probable and measurable. Over-recognising fines that are rarely collected inflates income unrealistically.
How AuditPro Core Bridges the Gap
- Condition testing: conditional transfers are tested so unspent portions sit as liabilities, not revenue.
- Recognition rules: rates and fines are checked against enforceability and probability criteria.
- Source traceability: recognised amounts link to the valuation roll, fine registers and grant gazettes.
- Exception workflow: premature or over-stated recognition is flagged for correction.
Key Takeaways
- GRAP 23 covers rates, fines, taxes and transfers, distinct from exchange revenue.
- Conditional transfers create a liability until the condition is met.
- Recognise fines only where collection is probable and measurable.
- Mis-recognition of non-exchange revenue directly misstates the surplus.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.