BANKSETA AR 31 AUGUST

ANNUAL FINANCIAL STATEMENTS ACCOUNTING POLICIES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2022 IRREGULAR AND FRUITLESS AND WASTEFUL EXPENDITURE Irregular expenditure means expenditure incurred in contravention of, or not in accordance with, a requirement of any applicable legislation, including: - The PFMA, - The Skills Development Act (the Act), 1998 (Act No.97 of 1998) as amended - Instructions and circulars issued by the National Treasury 19.

Fruitless and wasteful expenditure means expenditure that was made in vain and/or would have been avoided had reasonable care been exercised.

All irregular and fruitless and wasteful expenditure is recognised against the respective class of expense in the period in which they are incurred. The expenditure is classified in accordance with the nature of the expense, and where-ever recovered in the same accounting period, it is shown net of any recoveries. Where-ever it is recovered in a subsequent financial year, it is accounted for against the expense if the project is not completed or as revenue in the statement of financial performance if the project is completed.

Irregular and fruitless and wasteful expenditure is removed from the notes to the annual financial statements when condoned by the Accounting Authority and National Treasury.

Fruitless expenditure is condoned by the Accounting Authority only.

Fruitless and wasteful expenditure is removed from the Annual Financial Statements when condoned by the Accounting Authority.

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COMPARATIVE FIGURES Where necessary, comparative figures have been adjusted to conform to changes in presentation in the current year. TAXATION No provision has been made for taxation, as the SETA has applied and received an income tax exempt status from SARS, in terms of Section 10 of the Income Tax Act , 1962 (Act 58 of 1962). The SETA is compliant with the conditions of this tax exempt status. EVENTS AFTER THE REPORTING DATE Events after reporting date are those events both favourable and unfavourable, that occur between the reporting date and the date when the financial statements are authorised for issue. Two types of events can be identified: - those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date); and - those that are indicative of conditions that arose after the reporting date (non-adjusting events after the reporting date).

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The SETA will adjust the amount recognised in the financial statements to reflect adjusting events after the reporting date once the event has occurred.

The SETA will disclose the nature of the event and an estimate of its financial effect or a statement that such estimate cannot be made in respect of all material non-adjusting events, where non-disclosure could influence the economic decisions of users taken on the basis of the financial statements.

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PART E: FINANCIAL INFORMATION | BANKSETA ANNUAL REPORT 2021/22