BANKSETA ANNUAL REPORT 2023

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

19. MATERIAL LOSSES THROUGH CRIMINAL CONDUCT, IRREGULAR, FRUITLESS AND WASTEFUL EXPENDITURE

BANKSETA is investigating possible criminal conduct in the amount of R25 000 relating to fraudulent documents submitted for discretionary grant projects.

19.1 Irregular Expenditure and Fruitless and Wasteful Expenditure

2022/23

2021/22

R’000

R’000

Incident/detail of irregular expenditure Irregular expenditure Fruitless and Wasteful Expenditure

1 576

1 298

-

25

Closing balance

1 601

1 298

Restatement of Opening Balances The presentation of both current year and prior year amounts has been aligned with the National Treasury Instruction No. 4 of 2022/23. The opening balance has been restated to R0 by removal of the amount of prior year closing balance of R23 939 000. The opening balances and other information are shown in the PFMA Compliance section of the annual report. In the course of the SETA operations BANKSETA is exposed to credit, liquidity and market risk. The SETA has developed a comprehensive risk strategy in terms of TR 28.1 in order to monitor and control these risks. The risk management process relating to each of these risks is discussed under the headings below. 20.1 Interest rate risk The SETA manages its interest rate risk by effectively investing SETA surplus cash in term or call deposits with different financial institutions according to the SETA’s investment policy. The SETA’s exposure to interest rate risk and the effective interest rates on financial assets at statement of financial position date as well as carrying amounts for each category of financial instruments are as follows: 20. FINANCIAL INSTRUMENTS

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