BANKSETA ANNUAL REPORT 2023

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

27. GOING CONCERN (continued)

27.3 Surplus retention and approval In 2022/23 the National Treasury informally delegated the approval of prior year surpluses to DHET. This was to be done in line with the relevant legislation regulating SETA operations being mainly the SETA Grant Regulations (as amended in 2014). These call for the SETAs to be 95% committed at year-end and if not to submit a motivation to DHET to retain the surplus. BANKSETA had achieved the 95% commitments level in 2021/22. However, the BANKSETA also requested DHET’s approval of the surplus retention, which DHET approved in January 2023. DHET also approved that the surplus be applied to increase budgets in the 2022/23 and 2023/24 years. The BANKSETA has a surplus of R965 637 000 (2021/22: R1 059 402 000) as of 31 March 2023 as disclosed in note 17.1. the BANKSETA will again apply to National Treasury via DHET to retain the 2022/23 surplus Should the BANKSETA forfeit all or part of the 2022/23 surplus to the fiscus, it is expected to still continue as a going concern, but would need to curtail some of the planned 2023/24 discretionary grant projects in order to cover the existing discretionary grant commitments at year-end. 27.4 Combined effect After assessing the combined effect of all the above, the BANKSETA is expected to continue as a going concern over the next financial year.

28. EVENTS AFTER REPORTING DATE

There were no post balance sheet events that impact the annual financial statement disclosures or are reportable.

29. NOTES TO STATEMENT OF COMPARISION OF BUDGET AND ACTUAL AMOUNTS

29.1 Budget and adjustments to budget The BANKSETA Accounting Authority approved the original budget and the revised budget.

The adjustment to budget arose in two parts being:

29.1.1The revision to 2022/23 budgets of R201 000 000 to utilise part of the 2021/22 approved surplus. DHET approved that BANKSETA retain and utilise the 2021/22 surplus to fund discretionary projects in 2022/23 and 2023/24 financial years. The 2021/22 surplus funds made up most of the amount that was BANKSETA’s reserves in prior year’s statement of financial position. The revision to 2022/23 budget to take into account levy receipts and investment income above the original 2022/23 budget amounting to R84 000 000. This allowed the BANKSETA to expand its discretionary grant expenditure as well as to fund additional mandatory grants and administration expenditure within the 2022/23 financial year.

The BANKSETA received approval from the National Treasury to budget for a deficit in the original budget.

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BANKSETA ANNUAL REPORT 2022/23