BANKSETA ANNUAL REPORT 2023

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

20. FINANCIAL INSTRUMENTS (continued)

20.4 Ageing of financial assets and liabilities (continued)

The ageing and carrying amounts of each category of financial liabilities is as follows: Carrying amount Contractual cash flows 6 months or less 6 - 12 months 1 - 2 years

More than 2 years

R’000

R’000

R’000

R’000

R’000

R’000

2022/23 Trade and

other payables from exchange transactions Trade and other payables from non-exchange transactions

(9 615)

(9 615)

(9 615)

-

-

-

(95 883)

(95 883)

(95 883)

-

-

-

Carrying amount

Contractual cash flows

6 months or less

6 - 12 months 1 - 2 years

More than 2 years

R’000

R’000

R’000

R’000

R’000

R’000

2021/22 Trade and

other payables from exchange transactions Trade and other payables from non-exchange transactions

(6 790)

(6 790)

(6 790)

-

-

-

(85 271)

(85 271)

(85 271)

-

-

-

In case of liquidity challenges, funding resources might be available in terms of DHET and National Treasury approval for borrowing requirements in the open market.

20.5 Credit risk The SETA limits its Treasury counter-party exposure by only dealing with well-established financial institutions approved by National Treasury. The SETA’s exposure is continuously monitored by the Accounting Authority. Credit risk with respect to levy paying employers is limited due to the nature of the income received. The SETA’s concentration of credit risk is limited to the banking industry in which the SETA operates. No events occurred in the banking industry during the financial year that may have an impact on the accounts receivable that has not been adequately provided for. The SETA is exposed to a concentration of credit risk, as significant amounts of income flows through the South African Revenue Service (SARS). This concentration of risk is limited as SARS is a government entity with sound reputation. Accounts receivable are presented net of allowance for irrecoverable debt.

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BANKSETA ANNUAL REPORT 2022/23