Page 330 - Department of Social Development Annual Report 2021

PART E: FINANCIAL INFORMATION

DISASTER RELIEF FUND

Notes To The Financial Statements Of The Disaster Relief Fund For The Year Ended
31 March 2021.

16. Related party transactions

16.1 The Department of Social Development

The executive authority of the Disaster Relief Fund is the Department of Social Development (DSD). Although a
related party relationship exists between the DSD and the fund, there were no transactions with DSD.

16.2 Relief fund Boards
A related party relationship exists between the Disaster Relief Fund and the Social Relief Fund, the Refugee Relief
fund and the State President’s Fund. There were no transactions between the above-mentioned related parties

16.3 National Development Agency (NDA)

A related party relationship exists between the Disaster Relief Fund and the NDA. There were no transactions
between the parties.
16.4 South African Social Security Agency (SASSA)

A related party relationship exists between the Disaster Relief Fund and SASSA. There were no transactions
between the parties.

17. Going Concern

The annual 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 course of
business. The fund is in the process of being closed. This will be done upon the amendment of the Social
Assistance Act, the process of which commenced in the 2012/13 financial year.

14.3 Meeting attendance for the period 01 April 2019 to 31 March 2020

None

15. Contingent Liabilities

15.1. Lists of beneficiary names were sent to Free State, Kwa-Zulu Natal, Eastern Cape, Limpopo and North West
provinces in the 2012/13 financial year to trace 2 449 unpaid flood relief beneficiaries. The projected amount
payable to the beneficiaries was calculated at a rate of R3 420 per beneficiary. In the 2013/14 financial year, Eastern
Cape (335) and North West (45) beneficiaries were paid to the value of R1 299 600.00. It is projected that the
remaining 2 069 beneficiaries outstanding at the end of the 2013/14 financial year amount to R7 075 980. This is
an on-going process which is expected to be finalised by the end of the 2014/15 financial year as the beneficiaries
are traced. During the 2014/15 financial year 546 beneficiaries could be traced in all the Provinces combined and
the amount of R1 867 320 was paid. A projected 1523 beneficiaries is untraceable or might still come forward in the
new financial year. However, the appointment of a new Disaster Relief Fund Board is in process and the Board might
take a different decision on the matter.

330 DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2020/21