RTIA Annual Report E-Book

Road Traffic Infringement Agency Annual Financial Statements for the year ended 31 March 2024 __________________________________________________________________________________________________________________________________________________________ Significant Accounting Policies

Determination of useful lives for property, plant and equipment The nature of the RTIA’s operations results in difficulties in determining the useful lives of items of property, plant and equipment. The asset lives exceed industry norms for similar assets. In re-assessing useful lives, the depreciation charge in the Statement of Financial Performance is adjusted. Adequacy of the leave pay provision The leave provision is based on actual leave days due to em ployees at their rate of remuneration. Remuneration increases take effect at the discretion of the negotiated rates with the bargaining council of the DPSA and these are announced by the Minister of Finance as and when negotiations have been concluded. In determining the provision, it is assumed that no leave will be forfeited and the assumption is based on past history. Estimates Estimates are informed by historical experience, information currently available to management, assumptions and other factors that are believed to be reasonable under the circumstances. These estimates are reviewed on a regular basis. Changes in estimates that are not due to errors, are processed in the period of the review and applied prospectively. The preparation of annual financial statements in conformity with GRAP, requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. These judgements

The Budget information presented in accordance with GRAP 1 and 24 has been disclosed separately in the Statement of Budget and Actual Amounts. The approved budget is prepared on an accrual basis and it covers the financial period from 1 April to 31 March. The annual financial statements and budget are prepared on the same basis of accounting. Comparative information is not required. Prior year comparatives The presentation and classification of items in the current period is consistent with prior years, unless otherwise specified. The current period annual financial statements have been presented in accordance with industry standards. The information content has remained the same. 1.1 Significant Judgements And Sources Of Estimation Uncertainty The use of judgement, estimates and assumptions is inherent to the process of preparing annual financial statements. These judgements, estimates and assumptions affect the amounts presented in the annual financial statements. Uncertainties about these estimates and assumptions could result in outcomes that require material adjustment to the carrying amount of the relevant asset or liability in future periods. Judgements In the process of applying these accounting policies, management has made the following judgements that may have a significant effect on the amounts recognised in the annual financial statements.

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Road Traffic Infringement Agency • Annual Report 2023/24