16. Statement of changes in net assets The Auditor-General identified the following: a) Included in the statement of changes in net assets is a line item "movement of reserves" amounting to R22 138 000 and a line item "allocation of unappropriated surplus or deficit not reflected" amounting to R20 252 000 which were incorrectly adjusted against the discretionary grant reserve. b) As a result, the grant reserve is overstated by R1 886 000.