BANKSETA ANNUAL REPORT 2023

REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON THE BANKING SECTOR EDUCATION AND TRAINING AUTHORITY

Report on the audit of the financial statements

Qualified opinion

1. I have audited the financial statements of the Banking Sector Education and Training Authority (BANKSETA ) set out on pages 127 to 202, which comprise the statement of financial position as at 31 March 2023, statement of financial performance, statement of changes in net assets, cash flow statement and the statement of comparison of budget information with actual information for the year then ended, as well as notes to the financial statements, including a summary of significant accounting policies. 2. In my opinion, except for the possible effects of the matter described in the basis for qualified opinion section of this report, the financial statements present fairly, in all material respects, the financial position of the BANKSETA as at 31 March 2023, and its financial performance and cash flows for the year then ended in accordance with the Standards of Generally Recognised Accounting Practice (GRAP) and the requirements of the Public Finance Management Act 1 of 1999 (PFMA) and the Skills Development Act 97 of 1998 (SDA). 3. Included in note 7, project grant payable – discretionary, is an amount of R11 852 594. The financial statements were materially misstated, as this amount did not agree to the underlying records. The effect on the financial statements is that project grant payables and discretionary grant expenditure, is overstated by R11 852 594. Additionally, commitments as included in note 18 is understated by this amount, and there is also an impact on the surplus for the period and the accumulated surplus. Context for opinion 4. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the responsibilities of the auditor-general for the audit of the financial statements section of my report. 5. I am independent of the public entity in accordance with the International Ethics Standards Board for Accountants’ International code of ethics for professional accountants (including International Independence Standards) (IESBA code) as well as other ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA code. 6. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my qualified opinion. Basis for qualified opinion Payables from non-exchange transactions

Other matters

7. I draw attention to the matters below. My opinion is not modified in respect of these matters.

Retention of surplus not approved by National Treasury 8. There are current deliberations with the National Treasury and the Department of Higher Education and Training regarding the appropriate approval processes for the retained surplus of R1 059 402 000, for the financial year 2021-22, disclosed in note 17. The ultimate outcome of the matter could not be determined and no provision for any liability was disclosed in the financial statements.

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BANKSETA ANNUAL REPORT 2022/23