RTIA Annual Report E-Book

Road Traffic Infringement Agency Annual Financial Statements for the year ended 31 March 2024 __________________________________________________________________________________________________________________________________________________________ Notes to the Annual Financial Statements

Note(s)

Financial

Total

instruments carried at amortised cost

Financial liabilities

Trade and other payables from exchange transactions

8 6

9 065 111

9 065 111

AARTO liabilities

136 638 010 145 703 121

136 638 010 145 703 121

Financial risk management Overview

The major rate of credit risk lies with the Issuing Authorities, as they are exposed to the losses as a result of the infringers not paying amounts to which the Issuing Authorities are entitled by virtue of the road traffic laws and regulations. The carrying amount of financial assets are recorded net of the impairment allowance. This represents the Agency’s maximum exposure to credit risk. Liquidity risk Liquidity risk is the risk that the Agency will not be able to meet its financial obligations as they fall due. The Agency’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Agency’s reputation. This implies maintaining sufficient cash resources and the availability of funding through Medium Term Expenditure Framework. The

The Agency’s principal financial instruments comprise of trade payables, trade receivables and cash balances which arise directly from its operations. The main purpose of these financial instruments is to fund the Agency’s day to day operations. The Agency is mainly exposed to the liquidity risk of the financial instruments. Management is of the opinion that the carrying values of the financial instruments approximates their fair value. Credit risk Credit risk refers to the risk that a counterparty will default on its contractual obligations, which will result in financial loss to the Agency. The Agency is exposed to minimal credit risk.

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Road Traffic Infringement Agency • Annual Report 2023/24