Page 339 - Department of Social Development Annual Report 2021

PART E: FINANCIAL INFORMATION

REFUGEE RELIEF FUND

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

Notes 2020/21 2019/20
R’000 R’000

2. Revenue
Interest received 25 44
Total 25 44

3 Administrative Expenditure

Bank Charges 2 2
Total 2 2

4 Audit Fees 27 27

5 Risk Management
Financial Risk Factors

5.1.1 Market Risk

Market risk is the risk that changes in market prices. Interest rates will affect the Refugee Relief Fund. The
objective of market risk management is to manage and control market risk exposure within acceptable
parameters while optimizing return. The Refugee Relief Fund does not manage this risk aggressively as the
investments of funds are determined by the Minister of Social Development and the Minister of Finance. Within
these parameters, funds are invested with reputable financial institutions.

5.1.2 Credit Risk

Credit risk is the risk of financial loss to the Refugee Relief Fund if a financial institution to a financial instrument
fails to meet its contractual obligations.
The Refugee Relief Fund exposure to credit risk is influenced only by the individual characteristics of the
financial institutions where funds are deposited or invested. Reputable financial institutions are used for
investing and cash handling purposes.

339 DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2020/21