BANKSETA ANNUAL REPORT 2023

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

18. COMMITMENTS (continued)

During the year, BANKSETA entered into a contract ending in 2026 to purchase ICT licences and ICT services. The ICT licences are classified as intangible assets. The outstanding commitments to purchase intangible assets until 2026 amounts to R3 102 000 (USD169 000).

As at prior year-end, 31 March 2022, the BANKSETA had placed orders for office furniture and fittings, which were delivered in 2022/23.

18.4 Operating leases

Total of future minimum lease payments under non-cancellable leases:

2022/23

2021/22

R’000

R’000

Not later than one year

4 104 8 934 1 182

3 877 11 923 2 298 18 098

Later than one year and not later than five years

Later than five years

14 220

The BANKSETA entered into operating leases in 2020 for its head office in Centurion, Gauteng and two regional offices, one in Polokwane and the other in East London. The two regional office leases are until the current BANKSETA licence expires in March 2030. The head office lease expires in 30 April 2030, but has an early termination option which BANKSETA can exercise effective from 31 May 2025 at no penalty. Therefore the minimum lease payments after May 2025 are not included in the amounts disclosed. The head office lease also has a renewal option.

The annual escalations in all the office lease agreements are 6%.

The BANKSETA also participated in a transversal contract under National Treasury for printers in April 2021 which ends in April 2024. There is no annual escalation in the printer lease agreements.

181

BANKSETA ANNUAL REPORT 2022/23