CCMA ANNUAL REPORT

Commission for Conciliation, Mediation and Arbitration Annual Report 2022/23

Financial Statement for the year ended 31 March 2023

Notes to the Financial Statements

2022 Restated*

Figures in Rand

Note(s) 2023

37. Risk management Liquidity risk The CCMA’s risk to liquidity is a result of the funds available to cover future commitments. The CCMA manages liquidity risk through an ongoing review of future commitments and credit facilities. The table below analyses the CCMA’s financial liabilities and net-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the statement of financial position to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

Less than 1 year

Between 1 and 2 years

Between 2 and 5 years

At 31 March 2023 Finance lease liability

393 761

27 006

- -

Payables from exchange transactions

50 293 101

-

Less than 1 year

Between 1 and 2 years

Between 2 and 5 years

At 31 March 2022 Finance lease liability

754 279

382 298

-

Payables from exchange transactions - Credit risk consists mainly of cash deposits, cash equivalents, derivative financial instruments and trade debtors. The entity only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party. Trade receivables comprise a widespread customer base. Management evaluated credit risk relating to customers on an ongoing basis. If customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the board. The utilisation of credit limits is regularly monitored. Sales to retail customers are settled in cash or using major credit cards. 56 739 566 -

Credit guarantee insurance is purchased when deemed appropriate. Financial assets exposed to credit risk at year end were as follows: Financial instrument Cash and cash equivalents

140 691 830

141 585 473

1 347 903

1 306 188

Receivables from exchange transactions

Market risk Interest rate risk The CCMA manages its interest rate risk by effectively investing available cash surplus with the Corporation for Public Deposits in accordance with the National Treasury regulations.

188