National Treasury Issues GRAP Bulletin on Public Entity Surpluses

Posted 05 January 2026 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: National Treasury has released a new reporting bulletin to clarify the accounting treatment of surplus funds for public entities. The guidance focuses on the alignment between legislative requirements and accounting standards.

In terms of National Treasury Instruction No. 03 of 2025/26, the National Treasury has issued the GRAP Reporting Bulletin (November 2025) regarding the recognition, measurement, and disclosure of surplus funds. This guidance specifically addresses funds to be surrendered or retained under section 53(3) of the Public Finance Management Act, No. 1 of 1999 (PFMA).

The bulletin clarifies the interaction between the following standards and legislative provisions:

  • GRAP 23 (Revenue from Non-Exchange Transactions);
  • GRAP 19 (Provisions, Contingent Liabilities and Contingent Assets); and
  • Relevant provisions of the PFMA.

A primary objective of the bulletin is to assist entities in distinguishing between conditions, restrictions, and statutory surrender obligations. To support consistent application, the publication includes 13 practical examples demonstrating how surplus assessments, retention requests, and surrender decisions should be executed.

Click here to download the GRAP Reporting Bulletin November 2025: Surplus Funds.

What this means for you, your business, or your clients

  • For yourself: No direct individual obligations; impact is channelled through the requirement to maintain technical proficiency in the interaction between GRAP 23, GRAP 19, and PFMA section 53(3).
  • For your business: Audit and accounting firms must update their compliance checklists and audit programs to reflect the 13 practical examples provided for surplus fund recognition and disclosure.
  • For your clients: Public entities must ensure that any requests to retain surpluses or decisions to surrender funds are documented and disclosed in strict accordance with the distinctions between conditions and statutory obligations outlined in the bulletin.

Originally published at https://accountingacademy.co.za/news/read/national-treasury-grap-reporting-bulletin-public-entity-surpluses

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