9. Reserves The Auditor-General identified that: Included in the mandatory grants disbursed amounting to R76 678 000 which is disclosed in note 7 to the financial statements, is an amount of R7 215 000 which should have been accounted for as a prior period error in terms of GRAP 3. As a result, prior periods mandatory grants expenditure is understated by R7 215 000 and the opening reserves are overstated by