BANKSETA ANNUAL REPORT 2023

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

26. COVID-19 IMPACT ON THE 2022/23 FINANCIAL YEAR RESULTS

The government lifted all COVID-19 restrictions that impacted workplaces and higher education and training in June 2022. The BANKSETA and its stakeholders retained some hybrid methods of working. BANKSETA programmes are mainly face to face but it has retained hybrid delivery models in all its programmes to allow flexibility. Workplaces and institutions of higher education are permitted to have full physical attendance, though some chose to keep some activities virtual. Institutions of higher learning had mainly caught up with delays to start of academic years due to the 2020 delays.. The BANKSETA provides staff with protective equipment and sanitation facilities at all its offices. In addition, appropriate cleaning is undertaken whenever there is a COVID case. The BANKSETA has not been impacted negatively during the year by any COVID restrictions. The additional administration and project costs due to COVID sanitation and hybrid delivery methods were minimal. There was no skills development levy holiday in the 2022/23 financial year. The banking sector has experienced good financial results and any impact of COVID lockdown on levies has been minimal. The Annual Financial Statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business. The SETA has a licence till 31 March 2030. There are no legislative and regulatory changes known that would impact BANKSETA’s ability to operate as a going concern within the next 12 months. 27.1 COVID related uncertainties impact on going concern The government lifted all COVID restrictions in June 2022. The BANKSETA has adapted all its delivery methods and operations to be able to switch between physical and hybrid methods delivery methods if the need arises. The BANKSETA does not expect any disruption in its future revenue, costs and operations going forward due to COVID-related matters. 27.2 BUSA matter in respect of mandatory grant percentage In 2019, the court struck down the Minister’s reduction of the mandatory grants percentage from 50% to 20%. BUSA took this matter to court and the Minister’s action was invalidated. No new mandatory percentage has been pronounced. The Minister has taken a conciliatory approach to the matter and is currently engaging with BUSA. No developments on this matter can be reported as at year-end. The BANKSETA has disclosed a contingent liability in regards to the matter in note 17, however, the timing and amount of this liability cannot be reasonably estimated. Should the BANKSETA have to revert to the previous 50% mandatory grant percentage backdated to the court date, it would have commitments greater than available funds. However due to the timing of the discretionary grants payments being spread over periods of up to 18 months, the BANKSETA would be able to still pay liabilities as they fell due and utilise funds from coming months to close any shortfalls. The BANKSETA would continue as a going concern. 27. GOING CONCERN

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