BANKSETA AR 31 AUGUST

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

18.

COMMITMENTS (CONTINUED)

The BANKSETA entered into operating leases in 2020 for its head office in Centurion, Gauteng and two regional offices, one being in Polokwane and the other in East London. The two regional office leases are until the current BANKSETA licence expires in March 2030. The head office lease expires in 30 April 2030, but has an early termination option which BANKSETA can exercise effective from 31 May 2025 at no penalty. Therefore the minimum lease payments after May 2025 are not included in the amounts disclosed. The Head office lease also has a renewal option.

The annual escalations in all the office lease agreements are 6%.

The BANKSETA also participated in a transversal contract under National Treasury for printers in April 2021 which ends in March 2024.

There are no annual escalations in the printer agreements.

19. MATERIAL LOSSES THROUGH CRIMINAL CONDUCT, IRREGULAR, FRUITLESS AND WASTEFUL EXPENDITURE

There were no losses experienced through criminal conduct in the current or previous year.

19.1 Irregular expenditure

2021/22

2020/21

Incident/detail of irregular expenditure

Disciplinary steps taken/ criminal proceedings

R’000

R’000

19.1.1 Award that did not comply with one specifications in the request for quotation and was deemed unfair in terms of the PFMA 19.1.2 Board fees of the Accounting Authority members whose appointment were not made in line with the Skills Development Act, no 97 of 1998 (SDA) as amended

Remedial action will be instituted by the entity. DHET has affected remedial action as the vetting of Accounting Authority members lies under DHET Authority

116

1 298 1 298

1371 1 487

Total irregular expenditure incurred in the current financial year

175

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