Page 344 - Department of Social Development Annual Report 2021

PART E: FINANCIAL INFORMATION

SOCIAL RELIEF FUND

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

Report on the audit of the financial statements

Opinion Responsibilities of the accounting authority for the
1. I have audited the financial statements of the Social financial statements
Relief Fund (fund) set out on pages 347 to 355, 8. The accounting authority is responsible for the
which comprise the statement of financial position preparation and fair presentation of the financial
as at 31 March 2021, statement of financial statements in accordance with the Standards of
performance, statement of changes in net assets GRAP and the requirements of the PAA, and for
and cash flow statement for the year then ended, as such internal control as the accounting authority
well as notes to the financial statements, including determines is necessary to enable the preparation
a summary of significant accounting policies. of financial statements that are free from material
2. In my opinion, the financial statements present misstatement, whether due to fraud or error.
fairly, in all material respects, the financial 9. In preparing the financial statements, the
position of the Social Relief Fund as at 31 March accounting authority is responsible for assessing
2021, and its financial performance and cash flows the Social Relief Fund’s ability to continue as a
for the year then ended in accordance with the going concern, disclosing, as applicable, matters
Standards of Generally Recognised Accounting relating to going concern and using the going
Practice (GRAP) and the general notice issued in concern basis of accounting unless the
terms of the Public Audit Act of South Africa 25 of appropriate governance structure either intends to
2004 (PAA). liquidate the fund or to cease operations, or has no
realistic alternative but to do so.
Basis for opinion
3. I conducted my audit in accordance with the Auditor-general’s responsibilities for the audit of the
International Standards on Auditing (ISAs). My financial statements
responsibilities under those standards are further 10. My objectives are to obtain reasonable assurance
described in the auditor-general’s responsibilities about whether the financial statements as a whole
for the audit of the financial statements section of are free from material misstatement, whether due
my report. to fraud or error, and to issue an auditor’s report
4. I am independent of the fund in accordance with that includes my opinion. Reasonable assurance is
the International Ethics Standards Board for a high level of assurance, but is not a guarantee
Accountants’ International code of ethics for that an audit conducted in accordance with the
professional accountants (including International ISAs will always detect a material misstatement
Independence Standards) (IESBA code) as well as when it exists. Misstatements can arise from fraud
other ethical requirements that are relevant to my or error and are considered material if,
audit in South Africa. I have fulfilled my other individually or in aggregate, they could reasonably
ethical responsibilities in accordance with these be expected to influence the economic decisions
requirements and the IESBA code. of users taken on the basis of these financial
5. I believe that the audit evidence I have obtained is statements.
sufficient and appropriate to provide a basis for my 11. A further description of my responsibilities for the
opinion. audit of the financial statements is included in the
annexure to the auditor’s report.
Material uncertainty related to going concern/financial
sustainability Performance information reporting
6. I draw attention to the matter below. My opinion is
not modified in respect of this matter. 12. The fund is not required to prepare a report on its
7. The enabling act of the fund, the Fund-raising Act performance against predetermined objectives, as
of South Africa 107 of 1978, will be amended, it does not fall within the ambit of the PFMA and
which will result in the dissolution of the fund. As such reporting is not required in terms of the
stated in note 13, these events or conditions, Fund-Raising Act.
along with the other matters as set forth in note
13, indicate that a material uncertainty exists that
may cast significant doubt on the fund’s ability to
continue as a going concern.

344 DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2020/21