BANKSETA ANNUAL REPORT 2023

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

21. ACCOUNTING PRONOUNCEMENTS (continued) 21.2 Standards and interpretations issued but not yet effective (continued)

h) Guideline on the application of materiality to financial statements The objective of this guideline is to provide guidance that will assist entities to apply the concept of materiality when preparing financial statements in accordance with standards of GRAP. This guideline aims to assist entities in achieving the overall financial reporting objective. The application of this guideline is not expected to have a material impact on the BANKSETA’s reporting.

22. RELATED PARTY TRANSACTIONS

Transactions with entities under common control The SETA was controlled by the Department of Labour for the period up until 31 October 2009, and since 1 November 2009 by the Department of Higher Education and Training. The Department of Higher Education and Training and the Department of Science and Technology were both placed under the Ministry of Higher Education, Science and Innovation in 2019. The departments are currently controlled by the Minister of Higher Education, Science and Innovation. By virtue of the fact that BANKSETA is a national public entity related to other entities and departments in the national sphere of government it is considered related to Telkom, Eskom, South African Airways, other SETAs and the National Skills Fund. The transactions are consistent with normal operating relationships between the entities and are undertaken on terms and conditions that are normal for such transactions. Where there were transactions and balances arising due to the movement of funds between entities under the common control of the Department, these amounts were disclosed. 22.1 INTERSETA balances and transactions The BANKSETA and all other SETAs are public entities under the common control of DHET. InterSETA transactions and balances arise due to the movement of employers from one SETA to another. The BANKSETA may also enter into training partnerships with fellow SETAs to joint fund programmes or participate in a training programme run by a fellow SETA. These are mainly skills programmes that benefit learners. The balances at year-end for included in receivables and payables and commitments are:

2022/23

2021/22

Amount of the transaction

Amount receivable / payable

Commitment value at year-end

Amount of the transaction

Amount receivable / payable

Commitment value at year end

Type of entity

Nature of transaction partnership project Partnership in a training programme

R’000

R’000

R’000

R’000

R’000

R’000

HWSETA NEDLAC

-

-

-

-

274

-

Transport SETA

- -

- -

31 500 31 500

- -

-

42 000 42 000

Total

274

190

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