BANKSETA AR 31 AUGUST

ANNUAL FINANCIAL STATEMENTS NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2022

17.

CONTINGENCIES (CONTINUED)

17.3.2Contingent liability in regards to employee claims An employee whose contract was not renewed has submitted a claim through the Labour court for six months salary, in terms of a directive by the Minister to extend all such contracts for six months. The BANKSETA is facing another claim by an employee for reimbursement of legal costs and damages as a result of disciplinary charges brought by the BANKSETA, which the BANKSETA then withdrew. Both cases are contingent on the outcome of external labour arbitration processes which should be completed within the next 12 months. An estimate of the contingent liabilities is R 1 327 000.

18.

COMMITMENTS

18.1 Discretionary reserve Of the balance of R1 059 291 000 (2020/21: R964 543 000) available in the discretionary reserve as at year-end, R1 041 906 000 (2020/21: R398 805 000) has been committed by the Accounting Authority for future projects and skills priorities shown below. Note that the definition of commitments by the Accounting Authority includes signed contracts and memoranda of agreements up to year-end. Amounts for expenses that have already been incurred, and therefore included in grant expenses in the Statement of Financial Performance, are also indicated. A request for retention of the reserve funds has been submitted to National Treasury. At the time of approval of the financial statements, the BANKSETA was awaiting approval from National Treasury.

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