RTIA Annual Report E-Book

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

product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. For uncertainties that result from the assessment of useful lives and residual values on property, plant and equipment and intangible assets, see note 1.4 and 1.5. Leave provision The leave pay provision is based on actual days accrued at the rate of remuneration at the reporting date. Changes in the rate of remuneration are determined annually. The provision is only needed when employees resign or employment is terminated, as unused leave is forfeited 3 months (i.e. June of each calendar year) after the financial year. RTIA acts as an agent to the Issuing Authorities RTIA is an agent of the Issuing Authorities for the purposes of the collection of the penalties and as such it would only account for the revenue collected for its own account, this is in terms of Section 13(1)(b) of the AARTO Act. RTIA is not responsible for issuing infringement notices, the only responsibility it has is to collect infringement penalties on behalf of the Issuing Authorities. Statutory receivables

means, such as regulations that require settlement by another entity in cash or another financial asset. Transactions will be regarded as statutory where they are undertaken because of specific legislative requirements requiring or permitting an entity to enter into those transactions. RTIA receivables generated arise by virtue of its mandate and legislation viz, the Administrative Adjudication of Road Traffic Offences Act No. 46 of 1998. Statutory receivables are arise from exchange transactions of the infringements fees. The initial measurement is at the amount specified in the legislation or similar means, with reference to specific fees basis. Statutory receivables are carried at cost less provision made for impairment of these receivables and it is assessed at least annually for possible impairment. The impairment is determined in accordance with the accounting policy for impairments, statutory receivable is impaired if there is evidence that the collection of the receivable has decreased as a result of the debtor being credit impaired (ie. financial difficulty or default). Impairment adjustments are made through the use of an allowance account. RTIA acts as a principal to the Collecting Agents RTIA is a principal to the Collecting Agents for the purposes of the collection of the penalties on behalf of the Issuing Authorities in terms of Section 5(1) of the AARTO Act. The role of the relationship is managed through the legislation or binding agreements concluded between the RTIA and the collecting agents in terms of the subcontracting relationship.

Statutory receivables arise from legislation or an equivalent

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Road Traffic Infringement Agency • Annual Report 2023/24