Page 355 - 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.
Report on the audit of the financial statements Responsibilities of the accounting authority for the
12. Related Party Transactions financial statements
Opinion 8. The accounting authority, is responsible for the
12.1 The Department of Social Development 1. I have audited the financial statements of the State preparation and fair presentation of the financial
The executive authority of the Social Relief Fund is the Minister of the Department of Social Development (DSD). President Fund set out on pages 360 to 367, which statements in accordance with the Standards of
Although a related party relationship exists between the DSD and the fund, there were no transactions with DSD. comprise the statement of financial position as at GRAP and for such internal control as the
31 March 2021, statement of financial accounting authority determines is necessary to
12.2 Relief Fund Boards performance, statement of changes in net assets enable the preparation of financial statements
A related party relationship exists between the Social Relief Fund, the Disaster Relief Fund, the Refugee Relief Fund and cash flow statement for the year then ended, that are free from material misstatement, whether
and the State President’s Fund. There were no transactions between the above-mentioned related parties. as well as notes to the financial statements, due to fraud or error.
including a summary of significant accounting 9. In preparing the financial statements, the
12.3 National Development Agency (NDA) policies. accounting authority is responsible for assessing
A related party relationship exists between the Social Relief Fund and the NDA. There were no transactions between 2. In my opinion, the financial statements present the State President Fund’s ability to continue as a
the parties. fairly, in all material respects, the financial going concern, disclosing, as applicable, matters
position of the State President Fund as at 31 relating to going concern and using the going
12.4 South African Social Security Agency (SASSA) March 2021, and its financial performance and concern basis of accounting unless the
A related party relationship exists between the Social Relief Fund and SASSA. There were no transactions between cash flows for the year then ended in accordance appropriate governance structure either intends
the parties. with the Standards of Generally Recognised to liquidate the fund or to cease operations, or has
Accounting Practice (GRAP). no realistic alternative but to do so.
13. Going Concern Basis for opinion Auditor-general’s responsibilities for the audit of the
The annual financial statements have been prepared on the basis of accounting policies applicable to a going 3. I conducted my audit in accordance with the financial statements
concern. This basis presumes that funds will be available to finance future operations and that the realisation of International Standards on Auditing (ISAs). My
assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of responsibilities under those standards are further 10. My objectives are to obtain reasonable assurance
business. The fund is in the process of being closed. This will be done upon the amendment of the Social Assistance described in the auditor-general’s responsibilities about whether the financial statements as a whole
Act and the Fund Raising Act, the processes of which commenced in the 2012/13 financial year. 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
sections 290 and 291 of the International Ethics a high level of assurance, but is not a guarantee
Standards Board for Accountants’ Code of ethics that an audit conducted in accordance with the
for professional accountants and part 1 and 3 of ISAs will always detect a material misstatement
the International Ethics Standards Board for when it exists. Misstatements can arise from fraud
Accountants’ International Code of Ethics for or error and are considered material if,
Professional Accountants (including International individually or in aggregate, they could
Independence Standards) (IESBA code), as well as reasonably be expected to influence the economic
other ethical requirements that are relevant to my decisions of users taken on the basis of these
audit in South Africa. I have fulfilled my other financial statements.
ethical responsibilities in accordance with these 11. A further description of my responsibilities for the
requirements and the IESBA codes. audit of the financial statements is included in the
5. I believe that the audit evidence I have obtained is annexure to the auditor’s report.
sufficient and appropriate to provide a basis for
my opinion. Performance information reporting

Material uncertainty related to going concern/financial 12. As the fund was dormant for the year under review,
sustainability no work was performed on the audit of
6. I draw attention to the below. My opinion is not performance information.
modified in respect of this matter.
7. The enabling act of the fund, the Fund Raising Act Audit of compliance with legislation
of South Africa, 1978 (Act No. 107 of 1978), will be
amended that will result in the dissolution of the 13. As the fund was dormant for the year under review,
fund. As stated in note 10, these events or no work was performed on the audit of
conditions, along with the other matters as set compliance with legislation.
forth in note 10, indicate that a material
uncertainty exists that may cast significant doubt
on the fund’s ability to continue as a going
concern.

DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2020/21 355

Other information

14. The State President Fund’s accounting authority is
responsible for the other information. The other
information comprises the information included in
the annual report.The other information does not
include the financial statements and the auditor’s
report.
15. My opinion on the financial statements does not
cover the other information and I do not express
an audit opinion or any form of assurance
conclusion thereon.
16. In connection with my audit, my responsibility is to
read the other information and, in doing so,
consider whether the other information is
materially inconsistent with the financial
statements, or my knowledge obtained in the
audit, or otherwise appears to be materially
misstated.
17. If based on the work I have performed, I conclude
that there is a material misstatement in this other
information, I am required to report that fact.
18. I have nothing to report in this regard.

Internal control deficiencies

19. I considered internal control relevant to my audit of
the financial statements; however, my objective
was not to express any form of assurance thereon,
did not identify any significant deficiencies in
internal control.

Pretoria
31 July 2021