Page 359 - Department of Social Development Annual Report 2021

Responsibilities of the accounting authority for the
Report on the audit of the financial statements
financial statements
8. The accounting authority, is responsible for the
Opinion
preparation and fair presentation of the financial
1. I have audited the financial statements of the State
statements in accordance with the Standards of
President Fund set out on pages 360 to 367, which
GRAP and for such internal control as the
comprise the statement of financial position as at
accounting authority determines is necessary to
of
March
31
statement
2021,
financial
enable the preparation of financial statements
performance, statement of changes in net assets
that are free from material misstatement, whether
and cash flow statement for the year then ended,
due to fraud or error.
as well as notes to the financial statements,
9. In preparing the financial statements, the
including a summary of significant accounting
accounting authority is responsible for assessing
policies.
the State President Fund’s ability to continue as a
2. In my opinion, the financial statements present
going concern, disclosing, as applicable, matters
fairly, in all material respects, the financial
relating to going concern and using the going
position of the State President Fund as at 31
concern basis of accounting unless the
March 2021, and its financial performance and
appropriate governance structure either intends
cash flows for the year then ended in accordance
to liquidate the fund or to cease operations, or has
with the Standards of Generally Recognised
no realistic alternative but to do so.
Accounting Practice (GRAP).
Auditor-general’s responsibilities for the audit of the
Basis for opinion
financial statements
3. I conducted my audit in accordance with the
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
sections 290 and 291 of the International Ethics
that an audit conducted in accordance with the
Standards Board for Accountants’ Code of ethics
ISAs will always detect a material misstatement
for professional accountants and part 1 and 3 of
when it exists. Misstatements can arise from fraud
the International Ethics Standards Board for
or error and are considered material if,
Accountants’ International Code of Ethics for
individually or in aggregate, they could
Professional Accountants (including International
reasonably be expected to influence the economic
Independence Standards) (IESBA code), as well as
decisions of users taken on the basis of these
other ethical requirements that are relevant to my
financial statements.
audit in South Africa. I have fulfilled my other
11. A further description of my responsibilities for the
ethical responsibilities in accordance with these
audit of the financial statements is included in the
requirements and the IESBA codes.
annexure to the auditor’s report.
5. I believe that the audit evidence I have obtained is
sufficient and appropriate to provide a basis for
Performance information reporting
my opinion.
12. As the fund was dormant for the year under review,
Material uncertainty related to going concern/financial
no work was performed on the audit of
sustainability
performance information.
6. I draw attention to the below. My opinion is not
modified in respect of this matter.
Audit of compliance with legislation
7. The enabling act of the fund, the Fund Raising Act
of South Africa, 1978 (Act No. 107 of 1978), will be
13. As the fund was dormant for the year under review,
amended that will result in the dissolution of the
no work was performed on the audit of
fund. As stated in note 10, these events or
compliance with legislation.
conditions, along with the other matters as set
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.
PART E: FINANCIAL INFORMATION
STATE PRESIDENT FUND
Annexure: Auditor-general’s responsibility for the audit
1. As part of an audit in accordance with the ISAs, I Communication with those charged with governance
Other information exercise professional judgement and maintain
professional scepticism throughout my audit of the 3. I communicate with the accounting authority
14. The State President Fund’s accounting authority is financial statements. regarding, among other matters, the planned
responsible for the other information. The other scope and timing of the audit and significant audit
information comprises the information included in Financial statements findings, including any significant deficiencies in
the annual report.The other information does not internal control that I identify during my audit.
include the financial statements and the auditor’s 2. In addition to my responsibility for the audit of the 4. I also provide the accounting authority with a
report. financial statements as described in the auditor’s statement that I have complied with relevant
15. My opinion on the financial statements does not report, I also: ethical requirements regarding independence, and
cover the other information and I do not express • dentify and assess the risks of material misstatement to communicate with them all relationships and
an audit opinion or any form of assurance of the financial statements whether due to fraud or other matters that may reasonably be thought to
conclusion thereon. error, design and perform audit procedures bear on my independence and, where applicable,
16. In connection with my audit, my responsibility is to responsive to those risks, and obtain audit evidence actions taken to eliminate threats or safeguards
read the other information and, in doing so, that is sufficient and appropriate to provide a basis applied.
consider whether the other information is for my opinion. The risk of not detecting a material
materially inconsistent with the financial misstatement resulting from fraud is higher than for
statements, or my knowledge obtained in the one resulting from error, as fraud may involve
audit, or otherwise appears to be materially collusion, forgery, intentional omissions,
misstated. misrepresentations, or the override of internal
17. If based on the work I have performed, I conclude control.
that there is a material misstatement in this other • obtain an understanding of internal control relevant
information, I am required to report that fact. to the audit in order to design audit procedures that
18. I have nothing to report in this regard.
are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the
Internal control deficiencies
effectiveness of the fund’s internal control.
• evaluate the appropriateness of accounting policies
19. I considered internal control relevant to my audit of used and the reasonableness of accounting
the financial statements; however, my objective estimates and related disclosures made by those
was not to express any form of assurance thereon, resposnsible for the financial statements.
did not identify any significant deficiencies in • conclude on the appropriateness of the accounting
internal control.
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 State
President 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
Pretoria
about the material uncertainty or, if such
31 July 2021 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.
• evaluate the overall presentation, structure and
content of the financial statements, including the
disclosures, and determine whether the financial
statements represent the underlying transactions
and events in a manner that achieves fair
presentation.
359 DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2020/21