FASSET ANNUAL REPORT

REVENUE COLLECTION

was left with a net deficit for 2020/21 which was then funded by the reserve. Since the four-month payment holiday, we have seen that the sector is stable, and our revenue has returned to previous monthly levels of R45 million. From a strategic financial perspective, FASSET needs to continually monitor the levy income as there might be a post-Covid economic impact as employment changes do not take place immediately. Fortunately, the financial services sector has been less affected than other sectors that lost whole workforces. We will however continue to monitor the sector and the country as a whole. There may be a delayed knock-on effect where companies affected by the pandemic close down, or where there is a further economic downturn or reduction in workforce numbers which could further impact revenue.

The revenues of all 21 SETAs were constrained in terms of President Cyril Ramaphosa’s announcement of the four-month payment holiday on the SDL that employers contribute to their respective SETAs. This measure was taken as a form of economic relief to employers in the wake of the economic impact of the Covid-19 lockdown. The result was that FASSET received 33% less revenue than was expected. In Rand terms FASSET had estimated receiving R550m in SDL revenue but actually received R400m, i.e. R150m less than anticipated. For employers, the payment holiday applied to the months of May, June, July and August while it affected the SETA’s revenues in July, August, September and October. FASSET

Table 4: Revenue Collection

2021 R,000

2020 R,000

Revenue from exchange transactions Other income

-

47

Investment income

29 798

54 534

Total revenue from exchange transaction

29 798 54 581

Revenue from non-exchange transactions Levies

401 421

552, 506

Other income

155

5, 703

Total revenue from non-exchange transactions

401 576 558, 209 431 374 612, 790

Total revenue

CAPITAL INVESTMENT

Fasset keeps its assets, the majority of which are in the form of excess cash in the CPD account with the Reserve Bank. The SETA also has measures in place to maintain its asset register mostly comprising furniture and some installations. This is kept up to date on an ongoing basis

FASSET Annual Integrated Report 2020/21

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