BANKSETA AR 31 AUGUST

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

28.

GOING CONCERN (CONTINUED)

28.5 Combined effect After assessing the combined effect of all the above, the BANKSETA is expected to continue as a going concern over the next financial year.

29.

EVENTS AFTER REPORTING DATE

There were no post balance sheet events that impact the annual financial statement disclosures or are reportable.

30. NOTES TO STATEMENT OF COMPARISION OF BUDGET AND ACTUAL AMOUNTS

30.1 Budget and Adjustments to budget The BANKSETA Accounting Authority approved the original budget and the revised budget.

The adjustment to budget arose from the proposed utilisation of the 2020/21 surplus approved by the National Treasury for BANKSETA to retain and utilise for discretionary projects. The surplus funds are in BANKSETA’s reserves.. The 2021/22 project expenditure budget was adjusted upwards to cover expenditure in 2021/22 on the prior year commitments as well as on additional projects. Legislation requires that the SETA annually, in August submit a budget for the following year to the Minister for approval.

The Minister approved both the original budget and the revised budget.

The BANKSETA received approval from the National Treasury to budget for a deficit in the original budget.

30.2 Skills Development Levy: income from non-exchange transactions The levy receipt for the current year was 10% higher than the budgets for the year. There was a 4 month levy holiday in the prior year, therefore the prior year amounts are not comparable. The major stakeholders rebounded from the negative impact of the Covid-19 restrictions on the economy and posted strong results.

This was reflected in the skills development levy receipts.

The levels are however still not at the pre-Covid levels.

30.3 Skills Development Levy: penalties and interest from non-exchange transactions Income from penalties and interest arise when employers fail to comply with taxation legislation, either through late or incorrect declarations or late payments. The level of such penalties and interest indicates the non-compliance in the sector. These level of interest and penalties amounts typically vary significantly year on year. The full amount received is made available for discretionary projects. This year the amount decreased by 9,4% from prior year. This analysis of this amount indicates that it is a few big bank levy payers with tax compliance matters.

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