BANKSETA ANNUAL REPORT 2023

ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2023

16. RECONCILIATION OF NET CASH FLOW FROM OPERATING ACTIVITIES TO NET SURPLUS

2022/23

2021/22

Note

R’000

R’000

Net (deficit)/surplus as per statement of financial performance

(93 402)

95 161

Adjusted for non-cash items: Depreciation/amortisation

1 337

1 175

Allowance for irrecoverable debts Interest accrued at year-end (Profit)/loss on disposal of fixed assets Adjusted for items separately disclosed Interest received

(7)

(1)

(7 276)

(142)

(37)

15

12.1

(68 504)

(50 420)

Adjusted for working capital changes: (Increase)/decrease in receivables from exchange transactions (Increase) in receivables from non-exchange transactions

(991)

2 419 2 853

116

Increase in payables and provisions

15 818

49 923

(152 946)

100 983

Cash (utilised in)/generated from operations

17. CONTINGENCIES

17.1 Retention of surplus funds In terms of the PFMA, all surplus funds as at year-end may be forfeited to National Treasury should an application for retention of surplus funds be denied. The total surplus per current legislation is calculated in line National Treasury Instruction No 12 of 2020.

2022/23

2021/22

R’000

R’000

Cash and cash equivalents at the end of the year

1 126 578

1 212 576

Add: Receivables

10 189

2 039

Less: Current liabilities

(171 692) 965 075

(155 212) 1 059 402

Total surplus per current legislation

SETAs are required to submit their surplus retention applications to National Treasury through their Executive Authority, DHET. The surpluses mainly cover discretionary grants commitments entered into, where the work will be undertaken in the following year. The SETA grant regulations require that SETAs be 95% committed at each final year end. The SETAs may motivate to DHET to support their application to retain any surpluses even if they have not reached this target.

164

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