Page 288 - Department of Social Development Annual Report 2021

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED

31 MARCH 2021

The Social Assistance Debtors over-recovery relates to social assistance debtors with credit
balances at the end of the financial year. This was due to over-recoveries from the debtors as a
result of, amongst others, decreased interest rates and non-cancellation of EFTs at the end of the
repayment period.

The timing of these refunds is uncertain as the details of the debtors including banking details
should be determined before payment can be made. The amounts refundable have been reliably
determined.

Reconciliation of movement in provisions – 2019/20

Social Unfair Non- Vicarious Total
Assistance Labour compliance Liability provisions
Debtors Practice to policy
over
recovery
R’000 R’000 R’000 R’000

Opening balance 19 449 232 - - 19 681
Increase in provision - - 123 234 165 123 399
Settlement of provision (2 435) (175) - - (2 610)
Unused amount reversed - - - - -
Reimbursement expected - - - - -
from third party
Change in provision due to
change in estimation of - (57) - - (57)
inputs
Closing balance 17 014 - 123 234 165 140 413

30. NON ADJUSTING EVENTS AFTER REPORTING DATE-

The President announced on 25 July 2021 the reintroduction of the Social Relief of Distress Grant
to provide a monthly payment of R350 until the end of March 2022. National Treasury has
authorised the use of funds in terms of section 16 of the PFMA, 1999, to defray expenditure
amounting to R10.013 billion for the first 3 months up to October 2021 and remaining months,
November 2021 to March 2022 will form part of the 2021 Adjusted Estimates process and tabled
in Parliament

288 DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2020/21