Page 280 - Department of Social Development Annual Report 2021

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED

31 MARCH 2021

18. NET CASH FLOW AVAILABLE FROM OPERATING ACTIVITIES
Note 2020/21 2019/20
R’000 R’000

Net surplus/(deficit) as per Statement of Financial 1 889 151 (14 704 560)
Performance
Add back non cash/cash movements not deemed (399 724) (68 496)
operating activities

(Increase)/decrease in receivables (23 387) 2 824
(Increase)/decrease in prepayments and advances (7 499) 31 876
Increase/(decrease) in payables – current 19 726 1 239
Expenditure on capital assets 11 698 7 430
Surrenders to Revenue Fund (400 146) (109 607)
Surrenders to RDP Fund/Donor (116) (2 258)
Net cash flow generated by operating activities 1 489 427 (14 773 056)

Previous year end credit balance was due to the April grants paid out March 2020. The balance
now is due to unspent funds

19. RECONCILIATION OF CASH AND CASH EQUIVALENTS FOR CASH FLOW PURPOSES

Note 2020/21 2019/20

R’000 R’000
Consolidated Paymaster General account (13 354 544) (14 831 927)
Cash receipts 1 4
Cash on hand 20 20
Total (13 354 523) (14 831 903)

The overdraft relates to the payments of social assistance grants on 30 March 2020 (2019/20) for the
2020/21 financial year. National Treasury will regularise this in Cabinet once SCOPA has approved it.

20. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

20.1 Contingent liabilities

Note 2020/21 2019/20
R’000 R’000

Liable to Nature
Claims against the department Annex 2 487 699 447 123
Intergovernmental payables (unconfirmed Annex 4 6 720 1 770
balances)
Total 494 419 448 893

The Labour Appeal Court (LAC) declared the salary increases for the 2020/21 financial year unlawful and invalid.
The LAC ruling has been appealed and referred to the Constitutional Court. The ruling by the Constitutional Court
will confirm if the department will be obligated to pay the salary increases in dispute

280 DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2020/21