BANKSETA ANNUAL REPORT 2023

ANNUAL FINANCIAL STATEMENTS ACCOUNTING POLICIES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2023 19. IRREGULAR AND FRUITLESS AND WASTEFUL EXPENDITURE (continued)

The BANKSETA only recognises:

- Irregular expenditure and fruitless and wasteful expenditure incurred and confirmed during the year, unless it is impractical to determine, then a note to that effect is shown; and - Payments made as it relates to multi-year contracts.

The amounts recognised in prior year include:

-

Amounts confirmed in that financial year;

- Amounts that were under assessment in that financial year and confirmed in the current financial year; and - Amounts that were not identified and are identified and confirmed in the current financial year. Current year irregular and fruitless and wasteful expenditure is recognised against the respective class of expense in the period in which they are incurred. The expenditure is classified in accordance with the nature of the expense, and wherever recovered in the same accounting period, it is shown net of any recoveries. Wherever it is recovered in a subsequent financial year, it is accounted for against the expense if the project is not completed or as revenue in the statement of financial performance if the project is completed. Where an instance of irregular expenditure or fruitless expenditure has been identified, the incident is recorded in the register, investigated and reported to the board. The recovery process is implemented, and if irrecoverable, condonation and removal in terms of the National Treasury Irregular Expenditure Framework is effected. In line with National Treasury Instruction No 4 of 2022/23, only current year irregular expenditure is derecognised when it is either recovered or condoned by National Treasury in that year, or, in cases where National Treasury has declined to condone, removed by the Accounting Authority. Prior year irregular expenditure is derecognised in the annual financial statements in line with National Treasury Instruction No 4 of 2022/2023. Current year fruitless and wasteful expenditure is removed from the notes to the annual financial statements when it is either recovered, or written off by the Accounting Authority in line with the framework issued by National Treasury. 20. COMPARATIVE FIGURES Where necessary, comparative figures have been adjusted to conform to changes in presentation in the current year. 21. TAXATION No provision has been made for taxation, as the SETA has applied for and received an income tax exempt status from SARS, in terms of Section 10 of the Income Tax Act, 1962 (Act No. 58 of 1962). The SETA is compliant with the conditions of this tax exempt status.

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PART F: FINANCIAL INFORMATION | BANKSETA ANNUAL REPORT 2022/23