FASSET ANNUAL REPORT

11. Provisions Reconciliation of provisions - 2021

Opening Balance

Additions Utilised during the year

Total

Provision for Discretionary grants - Employers Provision for Discretionary grants - projects

13 070 155 871 (13 070)

155 871

14 610 13 873

5 555 (14 610)

5 555

Exempt employer provision

55

-

13 928

Bonus provision

1 820 - 43 373 161 481 (29 500) 175 354 - (1 820)

Reconciliation of provisions - 2020

Opening Balance

Additions Utilised during the year

Reversed during the year

Total

Provision for discretionery grants LEG grants Provision for discretionery grants - projects

2 260 13 070 (2 260)

-

13 070 14 610 13 873

22 832 14 610

- -

(22 832)

Exempt employer provision

12 141

1 732 1 820

-

Bonus provision

1 676

(930)

(746)

1 820

38 909 31 232 (3 190) (23 578)

43 373

Provision for Discretionary grants - Employers An amount of R 155 871 000 (2020: R 13 070 000) relates to leaner Employer Grants. Applications for 2021 were received and evaluated during the current year and the final approval was after year end. Provision for Discretionary grants - Projects An amount of R 5 555 000 : (2020 R 14 610 000) relates to Discretionary grants for the Bursary projects, which are still subject to verification. Exempt employer provision An amount of R13 928 000 (2020: R13 873 000) relates to levies incorrectly contributed by employers, and paid over by SARS and DHEST, after being exempted from contributing SDL due to legislation changes which came into effect from 1 August 2005. As SARS collects the levies on behalf of DHEST, the responsibility to refund the levies to the employers remains with SARS. In terms of Skills Development Circular No. 09/2013, issued by DHET on 25 August 2013, SETAs are able to utilise exempted amounts contributed after the expiry date of five years as stipulated in terms of section 190 (4) of the Tax Administration Act. These amounts have been transferred to the discretionary funds in line with the aforementioned circular Bonus provision An amount of R 0 (2020: R 1 820 000) relates to performance bonus which is payable to employees that are with FASSET for six months or more at year end and the company has achieved sixty percent or more on the Annual Performance Plan targets. No provision in the current year as FASSET did not achieve sixty percent or more on the annual performance plan targets.

FASSET Annual Integrated Report 2020/21

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