Page 353 - Department of Social Development Annual Report 2021

PART E: FINANCIAL INFORMATION

SOCIAL RELIEF FUND

Notes To The Financial Statements Of The Social Relief Fund For The Year Ended
31 March 2021.
7.1.4 Interest Rate Risk
The Social 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 Social Relief Fund.

Change 2020/21 2019/20
Effective Rate Effective Rate
Investment (2.92)% 3.74% 6.66 %

Interest risk sensitivity analysis

2020/21 2019/20

Investment 43 336 41 741
.25% interest fluctuation impact 108 34 128 66

7.1.5 Foreign exchange risk
The fund does not hedge foreign exchange fluctuations. The fund does not have any foreign account receivables,

foreign accounts payables or derivative market instruments.

7.1.6 Price risk
Due to the nature and extent of the fund, there is no exposure to price risks.

2020/21 2019/20
R’000 R’000

8 Cash and Cash Equivalents
Cash - Bank Deposits 21 19
Cash - Corporation for Public Deposits 43 336 41 741
Total 43 357 41 760

The credit quality of cash at bank and short term deposits, excluding cash on hand that are neither past due nor
impaired can be assessed by reference to external credit ratings (if available) or historical information about
counterparty default rates.

2020/21 2019/20
R’000 R’000

9 Cash generated from/(utilized in) Operations
Surplus/ (deficit) before tax 1 598 2 751
(Interest received) (1 625) (2 782)
Net cash generated from Operations (27) (31)

DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2020/21 353