Assets & GRAP
Work-in-Progress Capital Projects
Capital work-in-progress balances and completion status by project.
Why Capital Work-in-Progress Needs Watching
Capital work-in-progress accumulates the cost of assets still under construction, and balances that sit there too long are a warning of stalled projects, capitalised costs that should have been expensed, or assets in use that are not yet being depreciated. Under GRAP 17, costs must transfer to property, plant and equipment and begin depreciating once the asset is ready for use, so a swollen, ageing WIP balance is a recurring AGSA finding. AuditPro Core tracks capital work-in-progress balances and completion status by project so transfers happen on time and stalled projects surface.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Total WIP
R 642 m
▲ 9% YoY
Projects in WIP
34
active
Stalled > 18 Months
6
review needed
Capitalised This Year
R 388 m
transferred to PPE
WIP Balance by Project Type (R m)
Project WIP Detail
| Project | Budget (R m) | WIP (R m) | Complete % |
|---|---|---|---|
| Arterial Road Upgrade | 180 | 142 | 79% |
| Bulk Water Pipeline | 220 | 168 | 76% |
| Substation Refurb | 140 | 124 | 89% |
| Civic Centre | 110 | 86 | 78% |
| WWTW Expansion | 90 | 50 | 56% |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Capitalisation and transfer
Costs sit in work-in-progress only while an asset is being built. Once it is ready for use, the balance must transfer to PPE and depreciation must start, even if the project is not formally closed.
Stalled and abandoned projects
WIP that shows no movement points to a stalled or abandoned project. Such balances may require impairment, and the under-delivery itself is a service-delivery and possibly grant-compliance concern.
Eligible costs
Only costs directly attributable to bringing the asset into use may be capitalised; administration and other indirect costs must be expensed. Misclassified costs inflate WIP and the eventual asset value.
How AuditPro Core Bridges the Gap
- Reconciliation: WIP balances reconcile to project records and the general ledger, confirming what is capitalised against what has been built.
- Continuous monitoring: balances and completion status are tracked per project so assets ready for use are transferred and depreciated on time.
- Exception workflow: projects with no movement or implausible cost build-up are flagged for transfer, impairment or investigation.
- Audit-ready export: the WIP schedule by project exports for the PPE note and the auditor's review of capitalisation and transfers.
Key Takeaways
- Transfer assets out of WIP and start depreciation once ready for use.
- Stagnant WIP signals stalled projects that may need impairment.
- Capitalise only directly attributable costs; expense indirect ones.
- An ageing WIP balance is a recurring source of audit findings.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.