FASSET ANNUAL REPORT

2021

2020 Restated

R ‘000

R ‘000

4. Receivables from non-exchange transactions

Statutory receivables

3 320 (670)

4 581 (825)

Provision for impairment of statutory receivables

Inter-SETA Receivables Project receivables*

80

-

17 727

23 075

Discreationary Grants Receivables

305

355

20 762 27 186 R 3 320 000 (2020: R4 581 000) was recognised as a receivable relating to the overpayment to the levy paying-employers in prior periods, as a result of levy income reversals done by SARS after the grants had been paid. FASSET refunds amounts to employers in the form of grants, based on information from DHEST. Where information is retrospectively amended, it may result in grants that have been paid to certain employers that are in excess of the amount FASSET is permitted to have granted to employers. All of the amounts included in the receivable as a result of the overpayment are over 30 days and a provision has been raised per the analysis below. A receivable relating to the overpayment to the employer in earlier periods is raised at the amount of such grant overpayment, net of bad debts and provision for irrecoverable amounts. The carrying amount of accounts receivable is net of allowance for any doubtful debt, estimated by the Accounting Authority based on assessment of the risk of non-recoverability. The carrying amount of these assets approximates their fair value. *An amount of R 17 728 000 relating to the grants refundable from ISFAP for unutilised funds. Reconciliation of provision for impairment of statutory receivables Opening balance (825) (714) Provision for impairment raised in the current period - (165) Amounts written off as uncollectible - 54 Amount reversed 155 - (670) (825) The provision is raised for employers with a debit balance who cannot be traced and the amount has not changed over six months.

5. Cash and cash equivalents Cash and cash equivalents consist of: Bank balances - FNB current account

99 674 751 758 851 432

24 790 762 792

Reserve Bank (CPD account)

787 582 As required in Treasury Regulation 31.2, National Treasury approved the banks where the bank accounts are held. FASSET invests surplus funds in line with the Treasury Regulations 31.3.3. During the current year funds were invested with the Corporation for Public Deposits. The average interest rate on funds held at the Corporation for Public Deposits was 3.75% (2020: 6.07%).

FASSET Annual Integrated Report 2020/21

105