BANKSETA ANNUAL REPORT 2023

ANNUAL FINANCIAL STATEMENTS ACCOUNTING POLICIES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2023 17. RELATED PARTIES An entity or individual is considered to be a related party to the BANKSETA when the party has the ability to control (or jointly control) the BANKSETA or can exercise significant influence over the BANKSETA in making financial and operating decisions, or if the party and the BANKSETA are under common control under the same Executive Authority. All departments and public entities in the national sphere of government are related parties as they are ultimately under common control. Representation of individuals and employer/labour representatives to the Accounting Authority Body, committees of the Accounting Authority or other equivalent body is considered as significant influence. Management are those persons responsible for the planning, directing and controlling the activities of the entity, including those charged with the governance of the entity in accordance with legislation, in instances where they are required to perform such functions. A related party transaction is a transfer of resources or obligations between related parties, regardless of whether a price is charged. Only transactions with related parties where the transactions are not concluded within the normal operating procedures, or on terms that are no more or less favourable than the terms it would use to conclude transactions with another entity or person, are disclosed. Only transactions with related parties where the transactions are not concluded within the normal operating procedures, or on terms that are no more or no less favourable than the terms it would use to conclude transactions with another entity or person, are disclosed. 18. PRESENTATION OF BUDGET INFORMATION IN THE FINANCIAL STATEMENTS The BANKSETA presents a comparison of the budget amounts for which it is held publicly accountable and actual amounts as a separate financial statement in the annual financial statements. The comparison of budget and actual amounts are presented separately for each level of legislative oversight: - by way of note disclosure and explanations of material differences between the budget for which the entity is held publicly accountable and actual amounts. The budget covers the period 1 April 2022 to 31 March 2023 and has been prepared on the accrual basis of accounting. 19. IRREGULAR AND FRUITLESS AND WASTEFUL EXPENDITURE Irregular expenditure means expenditure, other than unauthorised expenditure, incurred in contravention of, or not in accordance with, a requirement of any applicable legislation, including: - the approved and final budget amounts;

- The Public Financial Management Act, 1999 (Act No. 1 of 1999) (PFMA); - The Skills Development Act, 1998 (Act No. 97 of 1998) as amended; - Instructions and circulars issued by the National Treasury.

Fruitless and wasteful expenditure means expenditure that was made in vain and/or would have been avoided had reasonable care been exercised. In line with National Treasury Instruction No 4 of 2022/23, irregular expenditure and fruitless and wasteful expenditure is recognised in the notes to the annual financial statements when confirmed after assessment.

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BANKSETA ANNUAL REPORT 2022/23