SACAA Annual Report 2022_23

PART F I Annual Financial Statements Annual Financial Statements for the year ended 31 March 2023 Notes to the Annual Financial Statements

27. Risk management (continued) Business rescue/liquidation

As soon as it becomes known that a debtor has been placed into business rescue, provisional liquidation/ sequestration or has been placed into final liquidation/sequestration, the credit facility is automatically revoked. Interest is charged from the date of last payment to the date of final liquidation/sequestration and the debt is provided in full as irrecoverable. Foreign exchange risk The SACAA incurs currency risk as a result of expenses in foreign currencies, hence exposure to exchange rate fluctuations arises. The foreign currency in which the SACAA primarily deals is the US Dollar. No forward cover is taken out for these transactions. Management considers the foreign currency risk to be insignificant. 28. Going concern The financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary cause of business. Management is of the view that the SACAA will continue as a going concern for the foreseeable future as it has sufficient available reserves currently as well as financial support from its Executive Authority, the Department of Transport for the next three financial years. Conditions in the aviation industry continues to improve. 29. Events after the reporting date The Board is not aware of any significant events that occurred after the reporting date that were not adjusted or disclosed in the annual financial statements. Furthermore, and except for the matters referred to in the going concern paragraph, management is not aware of any circumstances that exist that would impede the SACAA’s

ability to continue as a going concern. 30. Irregular expenditure

2023

2022

Opening balance

-

- -

Add: Irregular Expenditure - current

254 226 254 226

Closing balance - The irregular expenditure in the current year relates to non-compliance to SCM policies, procedures and prescripts. Internal Audit Division, through its Forensic Services Department, has conducted and concluded its investigation after year end and confirms the irregular expenditure. The investigation confirmed that there was no fraudulent, corrupt or criminal conduct, that there were no losses incurred and that value for money was received. Management accepted the investigation report of Internal Audit and is busy implementing recommendations thereof.

220 I Annual Report 2022/23 I Annual Financial Statements