BANKSETA AR 31 AUGUST

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

21.

ACCOUNTING PRONOUNCEMENTS (CONTINUED)

Guideline on the application of materiality to Financial Statements The objective of this Guideline is to provide guidance that will assist entities to apply the concept of materiality when preparing financial statements in accordance with Standards of GRAP. This Guideline aims to assist entities in achieving the overall financial reporting objective. the application of this guideline is not expected to have a material impact on the BANKSETA’s reporting.

22.

RELATED PARTY TRANSACTIONS

Transactions with entities under common control The SETA was controlled by the Department of Labour, for the period up until 31 October 2009, and since 1 November 2009 by the Department of Higher Education and Training. The Department of Higher Education and Training and the Department of Science and Technology were both put the Ministry of Higher Education Science and Innovation in 2019. The departments are currently controlled, by the Minister of Higher Education Science and Innovation. By virtue of the fact that BANKSETA is a National Public Entity related to other entities and departments in the National sphere of government it is considered related to Telkom, Eskom, South African Airways, other SETAs and the National Skills Fund. The transactions are consistent with normal operating relationships between the entities and are undertaken on terms and conditions that are normal for such transactions. Where there were transactions and balances arising due to the movement of funds between entities under the common control of the Department, these amounts were disclosed below:

22.1 INTERSETA balances and transactions

The BANKSETA and all other SETAs are public entities under the common control of DHET. InterSETA transactions and balances arise due to the movement of employers from one SETA to another. The balances at year-end included in receivables and payables are:

2021/22

2020/21

Amount of the transaction

Amount receivable/ payable

Commitment value at year end

Amount of the transaction

Amount receivable/ payable

Commitment value at year end

Nature of transaction

R’000

R’000

R’000

R’000

R’000

R’000

HWSETA NEDLAC

partnership

-

274

-

-

-

2 000

Transport SETA

SETA training

- -

-

42 000 42 000

- -

- -

-

Total

274

2 000

* Note that wherever amounts relating to SETA transfer of skills development levies received from employees are shown that the amount of the transaction, where applicable, includes interest and penalties transferred to or from the SETA.

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