BANKSETA AR 31 AUGUST

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

20.

FINANCIAL INSTRUMENTS (CONTINUED)

20.2 Liquidity risk Liquidity risk is the risk that the entity could experience difficulties in meeting its commitments to creditors as financial liabilities fall due for payment. The BANKSETA is exposed to liquidity risks as it has outstanding obligations to make payments to levy-paying employers and training providers for training that has been completed and also payments to trade creditors for goods delivered and services rendered. 20.3 Fair values The SETA’s financial instruments consist mainly of cash and cash equivalents, receivables fromexchange and non-exchange transactions and payables from exchange and non-exchange transactions. No financial instruments were carried at an amount in excess of its fair value. The following methods and assumptions are used to determine the fair value of each class of financial instrument: The SETAmanages liquidity risk through proper management of working capital, capital expenditure and review of cashflows against budgeted cashflows as detailed in the finance policies. Adequate reserves and liquid resources are also maintained.

20.4 Ageing of financial assets and liabilities

The ageing of receivables from exchange transactions 2021/22

2020/21

Gross R’000

Impairment R’000

Gross R’000

Impairment R’000

- *

Not past due

1 313

- - - - - -

3 501

Past due 0 - 30 days Past due 31 - 120 days Past due 120 - 365 days

- 8 -

-

- -

-

- -

- -

More than one year Total receivables

-

1 321

3 501

-

The ageing of cash and cash equivalents:

2021/22

2020/21

Gross R’000

Impairment R’000

Gross R’000

Impairment R’000

Not past due

1 212 576

- -

1 062 015

-

Past due 0 - 30 days Past due 31 - 120 days Past due 120 - 365 days

- - - -

-

- - -

-

-

- -

- -

More than one year

- -

Total cash and cash equivalents

1 212 576

-

1 062 015

* Prior year other accounts receivable figure restated to exclude prepayments. Refer to note 20.9.

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