Page 232 - Department of Social Development Annual Report 2021

PART E: FINANCIAL INFORMATION
APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2021
REPORT OF THE AUDITOR-GENERAL TO PARLIAMENT ON

VOTE NO. 19: DEPARTMENT OF SOCIAL DEVELOPMENT

Report on the audit of the financial statements
Opinion Other matter
1. I have audited the financial statements of the 8. I draw attention to the matter below. My opinion is
Department of Social Development set out on not modified in respect of this matter.
pages 236 to 302, which comprise the appropria-
tion statement, statement of financial position as Unaudited supplementary schedules
at 31 March 2021, the statement of financial 9. The supplementary information set out on pages
performance, statement of changes in net assets 303 to 317 does not form part of the financial
and cash flow statement for the year then ended, statements and is presented as additional informa-
as well as notes to the financial statements, tion. I have not audited these schedules and
including a summary of significant accounting accordingly, I do not express an opinion on them.
policies.
2. In my opinion, the financial statements present Responsibilities of the accounting officer for the
fairly, in all material respects, the financial financial statements
position of the Department of Social Development
as at 31 March 2021, and its financial performance 10. The accounting officer is responsible for the prepa-
and cash flows for the year then ended in accor- ration and fair presentation of the financial state-
dance with the Modified Cash Standard (MCS) ments in accordance with the MCS and the require-
prescribed by the National Treasury and the ments of the PFMA and Dora, and for such internal
requirements of the Public Finance Management control as the accounting officer determines is
Act of South Africa 1 of 1999 (PFMA) and the necessary to enable the preparation of financial
Division of Revenue Act of South Africa 16 of 2019 statements that are free from material misstate-
(Dora).
ment, whether due to fraud or error.
11. In preparing the financial statements, the account-
Basis for opinion ing officer is responsible for assessing the depart-
3. I conducted my audit in accordance with the Inter- ment’s ability to continue as a going concern,
national Standards on Auditing (ISAs). My respon- disclosing, as applicable, matters relating to going
sibilities under those standards are further concern and using the going concern basis of
described in the auditor-general’s responsibilities accounting unless the appropriate governance
for the audit of the financial statements section of structure either intends to liquidate the depart-
my report.
4. I am independent of the department in accordance ment or to cease operations, or has no realistic
alternative but to do so.
with the International Ethics Standards Board for
Accountants’ International code of ethics for Auditor-general’s responsibilities for the audit of the
professional accountants (including International financial statements
Independence Standards) (IESBA code) as well as
other ethical requirements that are relevant to my 12. My objectives are to obtain reasonable assurance
audit in South Africa. I have fulfilled my other about whether the financial statements as a whole
ethical responsibilities in accordance with these are free from material misstatement, whether due
requirements and the IESBA code.
5. I believe that the audit evidence I have obtained is to fraud or error, and to issue an auditor’s report
that includes my opinion. Reasonable assurance is
sufficient and appropriate to provide a basis for my a high level of assurance but is not a guarantee
opinion.
that an audit conducted in accordance with the
ISAs will always detect a material misstatement
Emphasis of matter when it exists. Misstatements can arise from fraud
6. I draw attention to the matter below. My opinion is or error and are considered material if, individually
not modified in respect of this matter. or in aggregate, they could reasonably be expected
to influence the economic decisions of users taken
Significant subsequent event on the basis of these financial statements.
13. A further description of my responsibilities for the
7. I draw attention to note 30 to the financial state- audit of the financial statements is included in the
ments, which deals with subsequent events and, annexure to this auditor’s report.
specifically, the possible effects of the future
implications on the department’s future prospects,

performance and cash flows in relation to the
additional R350 social relief of distress grant that
will be paid from August 2021 until March 2022.
232 DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2020/21