Page 319 - Department of Social Development Annual Report 2021

PART E: FINANCIAL INFORMATION

DISASTER RELIEF FUND

Report of the auditor-general to the minister of Social Development on the Disaster Relief Fund

Report on the audit of the financial statements Introduction and scope
13. In accordance with the PAA and the general notice
issued in terms thereof, I have a responsibility to
Opinion Responsibilities of the accounting authority for the report material findings on the fund’s compliance
1. I have audited the financial statements of the financial statements with specific matters in key legislation. I performed
Disaster Relief Fund set out on pages 322 to 330, 8. The accounting authority is responsible for the procedures to identify findings but not to gather
which comprise the statement of financial position preparation and fair presentation of the financial evidence to express assurance.
as at 31 March 2021, the statement of financial statements in accordance with the Standards of 14. I did not identify any material findings on
performance, statement of changes in net assets GRAP and the requirements of the PAA, and for compliance with the specific matters in key
and cash flow statement for the year then ended, such internal control as the accounting authority legislation set out in the general notice issued in
as well as notes to the financial statements, determines is necessary to enable the preparation terms of the PAA.
including a summary of significant accounting of financial statements that are free from material
policies. misstatement, whether due to fraud or error. Other information
2. In my opinion, the financial statements present 9. In preparing the financial statements, the account- 15. The accounting authority is responsible for the
fairly, in all material respects, the financial ing authority is responsible for assessing the fund’s other information. The other information
position of the Disaster Relief Fund as at 31 March ability to continue as a going concern, disclosing, comprises the information included in the annual
2021, and its financial performance and cash flows as applicable, matters relating to going concern report. The other information does not include the
for the year then ended in accordance with the and using the going concern basis of accounting financial statements and the auditor’s report.
Standards of Generally Recognised Accounting unless the appropriate governance structure either 16. My opinion on the financial statements and findings
Practice (GRAP) and the requirements of the intends to liquidate the fund or to cease opera- on compliance with legislation do not cover the
general notice issued in terms of the Public Audit tions, or has no realistic alternative but to do so. other information and I do not express an audit
Act of South Africa, 2004 (Act No. 25 of 2004) opinion or any form of assurance conclusion on it.
(PAA). Auditor-general’s responsibilities for the audit of the 17. In connection with my audit, my responsibility is to
financial statements read the other information and, in doing so,
Basis for opinion 10. My objectives are to obtain reasonable assurance consider whether the other information is
3. I conducted my audit in accordance with the about whether the financial statements as a whole materially inconsistent with the financial
International Standards on Auditing (ISAs). My are free from material misstatement, whether due statements, or my knowledge obtained in the audit,
responsibilities under those standards are further to fraud or error, and to issue an auditor’s report or otherwise appears to be materially misstated.
described in the auditor-general’s responsibilities that includes my opinion. Reasonable assurance is 18. If based on the work I have performed, I conclude
for the audit of the financial statements section of a high level of assurance but is not a guarantee that there is a material misstatement in this other
my report. that an audit conducted in accordance with the information, I am required to report that fact.
4. I am independent of the fund in accordance with ISAs will always detect a material misstatement 19. I have nothing to report in this regard.
the International Ethics Standards Board for when it exists. Misstatements can arise from fraud
Accountants’ International code of ethics for or error and are considered material if, individually Internal control deficiencies
professional accountants (including International or in aggregate, they could reasonably be expected
Independence Standards) (IESBA code) as well as to influence the economic decisions of users taken 20. I considered internal control relevant to my audit of
other ethical requirements that are relevant to my on the basis of these financial statements. the financial statements and compliance with
audit in South Africa. I have fulfilled my other 11. A further description of my responsibilities for the applicable legislation; however, my objective was
ethical responsibilities in accordance with these audit of the financial statements is included in the not to express any form of assurance thereon. I did
requirements and the IESBA code. annexure to this auditor’s report. not identify any significant deficiencies in internal
5. I believe that the audit evidence I have obtained is control.
sufficient and appropriate to provide a basis for my Report on the audit of the annual performance report
opinion.
12. The fund is not required to prepare a report on its
Material uncertainty relating to going concern performance against predetermined objectives as
6. I draw attention to the matter below. My opinion is it does not fall within the ambit of the PFMA and
not modified in respect of this matter. such reporting is also not required in terms of the
7. I draw attention to note 17 to the financial entity’s specific legislation.
statements, which indicates that the enabling act
of the fund, the Fund Raising Act of South Africa, Report on the audit of compliance with legislation
1978 (Act 107 of 1978), will be amended resulting
in the dissolution of the fund. As stated in note 17,
these events or conditions, along with the other
matters as set forth in note 17, indicate that a
material uncertainty exists that may cast
significant doubt on the fund’s ability to continue
as a going concern.

DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2020/21 319