Page 340 - 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.

Financial Assets

2020/21 2019/20
R’000 R’000

Cost 655 640
Additions during the year (4) 15
Closing Balance 651 655

5.1.3 Liquidity risk
Liquidity risk is the risk that the Refugee Relief Fund will not be able to meet its financial obligations as they fall
due. The Refugee Relief Fund’s approach to managing liquidity is to ensure that investment terms chosen will
ensure that it will always have sufficient liquidity to meet its liabilities when due. The Refugee Relief Fund monitors
its cash flow requirements and optimizes its cash return on investments.

2020/21 2019/20
R’000 R’000
Cash and Cash Equivalents
Cash and Balances with Banks 10 9
Investment 641 646
Total 651 655

5.1.4 Interest Rate Risk
The Refugee Relief Fund manages its interest risk by effectively investing surplus funds with different accredited
financial institutions. Any movement in interest rate will affect interest income. Interest income is capitalized and will
therefore not affect the operations of the Refugee Relief Fund.

2020/21 2019/20 Change
Change Effective Rate Effective Rate

Investment (2.91)% 3.9% 6.81%

Interest risk sensitivity analysis

2020/21 2019/20
R’000 R’000

Investment 641 646
.25% interest fluctuation impact 1.60 1.87

DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2020/21 340