BANKSETA ANNUAL REPORT 2023

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

17. CONTINGENCIES (continued)

BANKSETA’s position in regards to commitments not included in the above surplus calculation is as follows:

2021/22 Restated

2022/23

R’000

R’000

Total surplus per current legislation Less: Discretionary grant commitments

965 075 1 059 402

(926 398)

(1 080 456)

Uncommitted surplus

38 677

(21 054)

National Treasury informally delegated the approval of the SETA’s 2021/22 surpluses to DHET in 2022/23. National Treasury is still to formalise this delegation through legislation. DHET approved BANKSETA’s 2021/22 surplus in January 2023 and BANKSETA did not forfeit any funds. National Treasury is still to decide whether DHET will continue to handle the SETA surpluses going forward. BANKSETA will submit the request for approval of 2022/23 surpluses to both National Treasury and DHET in August 2023. 17.1.1Prior year error In prior year the commitments balance was understated by R38 550 000 due to some items misclassified as contingent commitments/multi-year contracts with suspensive conditions. The effect of this correction is shown below. The restated amount is shown in the calculation on the uncommitted surplus.

Total surplus per current legislation

Less: Discretionary

Uncommitted surplus

R’000

R’000

R’000

2021/2022 amounts previously disclosed Adjustments for misstatement in commitments

1 059 402 (1 041 906)

17 496

-

(38 550)

(38 550) (21 054)

2021/2022 amounts restated

1 059 402 (1 080 456)

17.2 First time employer registrations The skills development legislation allows an employer, registering for the first time, 6 months to submit an application for a mandatory grant. At the reporting date it is estimated that, as a result, additional mandatory grant expenditure of R137 000 (2021/22: R111 000) will be payable. The amount is contingent on the number of submissions received and approved.

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BANKSETA ANNUAL REPORT 2022/23