Page 346 - Department of Social Development Annual Report 2021

Report on the audit of the financial statements
Responsibilities of the accounting authority for the
Opinion
financial statements
1. I have audited the financial statements of the Social
8. The accounting authority is responsible for the
Relief Fund (fund) set out on pages 347 to 355,
preparation and fair presentation of the financial
which comprise the statement of financial position
statements in accordance with the Standards of
as at 31 March 2021, statement of financial
GRAP and the requirements of the PAA, and for
performance, statement of changes in net assets
such internal control as the accounting authority
and cash flow statement for the year then ended, as
determines is necessary to enable the preparation
well as notes to the financial statements, including
of financial statements that are free from material
a summary of significant accounting policies.
misstatement, whether due to fraud or error.
2. In my opinion, the financial statements present
9. In preparing the financial statements, the
fairly, in all material respects, the financial
accounting authority is responsible for assessing
position of the Social Relief Fund as at 31 March
the Social Relief Fund’s ability to continue as a
2021, and its financial performance and cash flows
going concern, disclosing, as applicable, matters
for the year then ended in accordance with the
relating to going concern and using the going
Standards of Generally Recognised Accounting
accounting
unless
basis
concern
of
Practice (GRAP) and the general notice issued in
appropriate governance structure either intends to
terms of the Public Audit Act of South Africa 25 of
liquidate the fund or to cease operations, or has no
2004 (PAA).
realistic alternative but to do so.
Basis for opinion
Auditor-general’s responsibilities for the audit of the
3. I conducted my audit in accordance with the
financial statements
International Standards on Auditing (ISAs). My
10. My objectives are to obtain reasonable assurance
responsibilities under those standards are further
about whether the financial statements as a whole
described in the auditor-general’s responsibilities
are free from material misstatement, whether due
for the audit of the financial statements section of
to fraud or error, and to issue an auditor’s report
my report.
that includes my opinion. Reasonable assurance is
4. I am independent of the fund in accordance with
a high level of assurance, but is not a guarantee
the International Ethics Standards Board for
that an audit conducted in accordance with the
Accountants’ International code of ethics for
ISAs will always detect a material misstatement
professional accountants (including International
when it exists. Misstatements can arise from fraud
Independence Standards) (IESBA code) as well as
or error and are considered material if,
other ethical requirements that are relevant to my
individually or in aggregate, they could reasonably
audit in South Africa. I have fulfilled my other
be expected to influence the economic decisions
ethical responsibilities in accordance with these
of users taken on the basis of these financial
requirements and the IESBA code.
statements.
5. I believe that the audit evidence I have obtained is
11. A further description of my responsibilities for the
sufficient and appropriate to provide a basis for my
audit of the financial statements is included in the
opinion.
annexure to the auditor’s report.
Material uncertainty related to going concern/financial
Performance information reporting
sustainability
6. I draw attention to the matter below. My opinion is
12. The fund is not required to prepare a report on its
not modified in respect of this matter.
performance against predetermined objectives, as
7. The enabling act of the fund, the Fund-raising Act
it does not fall within the ambit of the PFMA and
of South Africa 107 of 1978, will be amended,
such reporting is not required in terms of the
which will result in the dissolution of the fund. As
Fund-Raising Act.
stated in note 13, these events or conditions,
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.
PART E: FINANCIAL INFORMATION the
SOCIAL RELIEF FUND
Annexure: Auditor-general’s responsibility for the audit
Annexure: Auditor-general’s responsibility for the audit • evaluate the overall presentation, structure and
content of the financial statements, including the
1. As part of an audit in accordance with the ISAs, I disclosures, and determine whether the financial
exercise professional judgement and maintain statements represent the underlying transactions
professional scepticism throughout my audit of the and events in a manner that achieves fair
financial statements. presentation.
Financial statements Communication with those charged with governance
2. In addition to my responsibility for the audit of the 3. I communicate with the accounting authority
financial statements as described in the auditor’s regarding, among other matters, the planned
report, I also: scope and timing of the audit and significant audit
• identify and assess the risks of material misstatement findings, including any significant deficiencies in
of the financial statements whether due to fraud or internal control that I identify during my audit.
error, design and perform audit procedures 4. I also provide the accounting authority with a
responsive to those risks, and obtain audit evidence statement that I have complied with relevant
that is sufficient and appropriate to provide a basis ethical requirements regarding independence, and
for my opinion. The risk of not detecting a material to communicate with them all relationships and
misstatement resulting from fraud is higher than for other matters that may reasonably be thought to
one resulting from error, as fraud may involve bear on my independence and, where applicable,
collusion, forgery, intentional omissions, actions taken to eliminate threats or safeguards
misrepresentations, or the override of internal applied.
control.
• obtain an understanding of internal control relevant
to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the
effectiveness of the fund’s internal control.
• evaluate the appropriateness of accounting policies
used and the reasonableness of accounting
estimates and related disclosures made by those
responsible for the financial statements.
• conclude on the appropriateness of the accounting
authority’s use of the going concern basis of
accounting in the preparation of the financial
statements. I also conclude, based on the audit
evidence obtained, whether a material uncertainty
exists relating to events or conditions that may cast
significant doubt on the ability of the Social Relief
Fund to continue as a going concern. If I conclude
that a material uncertainty exists, I am required to
draw attention in my auditor’s report to the related
disclosures in the financial statements about the
material uncertainty or, if such disclosures are
inadequate, to modify my opinion on the financial
statements. My conclusions are based on the
information available to me at the date of the
auditor’s report. However, future events or
conditions may cause a fund to cease operating as a
going concern.
346 DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2020/21