Page 175 - DSD ANNUAL REPORT 2022-2

PART E: FINANCIAL INFORMATION

Report of the Auditor-General to the Parliament on vote no. 19:

Department of Social Development

Report on the audit of the financial statements Responsibilities of the accounting officer for the financial
statements
Opinion 10. The accounting officer is responsible for the preparation and
1. I have audited the financial statements of the Department fair presentation of the financial statements in accordance
of Social Development set out on pages 179 to 228, which with the MCS and the requirements of the PFMA and Dora, and
comprise the appropriation statement, statement of financial for such internal control as the accounting officer determines
position as at 31 March 2022, the statement of financial is necessary to enable the preparation of financial statements
performance, statement of changes in net assets and cash that are free from material misstatement, whether due to fraud
flow statement for the year then ended, as well as notes to or error.
the financial statements, including a summary of significant 11. In preparing the financial statements, the accounting officer is
accounting policies. responsible for assessing the department’s ability to continue
2. In my opinion, the financial statements present fairly, in all as a going concern, disclosing, as applicable, matters relating to
material respects, the financial position of the Department going concern and using the going concern basis of accounting
of Social Development as at 31 March 2022, and its financial unless the appropriate governance structure either intends to
performance and cash flows for the year then ended in liquidate the department or to cease operations, or has no
accordance with the Modified Cash Standard (MCS) prescribed realistic alternative but to do so.
by the National Treasury and the requirements of the Public
Finance Management Act of South Africa 1 of 1999 (PFMA) and Auditor-general’s responsibilities for the audit of the financial
the Division of Revenue Act of South Africa 9 of 2021 (Dora). statements
12. My objectives are to obtain reasonable assurance about
Context for the opinion whether the financial statements as a whole are free from
3. I conducted my audit in accordance with the International material misstatement, whether due to fraud or error, and to
Standards on Auditing (ISAs). My responsibilities under those issue an auditor’s report that includes my opinion. Reasonable
standards are further described in the auditor-general’s assurance is a high level of assurance but is not a guarantee
responsibilities for the audit of the financial statements that an audit conducted in accordance with the ISAs will always
section of my report. detect a material misstatement when it exists. Misstatements
4. I am independent of the department in accordance with can arise from fraud or error and are considered material if,
the International Ethics Standards Board for Accountants’ individually or in aggregate, they could reasonably be expected
International code of ethics for professional accountants (including to influence the economic decisions of users taken on the basis
International Independence Standards) (IESBA code) as well as of these financial statements.
other ethical requirements that are relevant to my audit in 13. A further description of my responsibilities for the audit of
South Africa. I have fulfilled my other ethical responsibilities the financial statements is included in the annexure to this
in accordance with these requirements and the IESBA code. auditor’s report.
5. I believe that the audit evidence I have obtained is sufficient
and appropriate to provide a basis for my opinion. Report on the audit of the annual performance
report
Emphasis of matter
6. I draw attention to the matter below. My opinion is not modified Introduction and scope
in respect of this matter. 14. In accordance with the Public Audit Act 25 of 2004 (PAA) and the
general notice issued in terms thereof, I have a responsibility
Significant subsequent event to report on the usefulness and reliability of the reported
7. I draw attention to note 29 in the financial statements, performance information against predetermined objectives
which deals with non-adjusting events after reporting date for selected programmes presented in the annual performance
and specifically the department shifting the early childhood report. I performed procedures to identify material findings but
development grant function to the department of basic not to gather evidence to express assurance.
education from 01 April 2022. Our opinion is not modified in 15. My procedures address the usefulness and reliability of the
respect of this matter. reported performance information, which must be based on
the department’s approved performance planning documents.
Other matter I have not evaluated the completeness and appropriateness
8. I draw attention to the matter below. My opinion is not modified of the performance indicators included in the planning
in respect of this matter. documents. My procedures do not examine whether the
actions taken by the department enabled service delivery.
Unaudited supplementary schedules My procedures do not extend to any disclosures or assertions
9. The supplementary information set out on pages XX to XX does relating to the extent of achievements in the current year or
not form part of the financial statements and is presented as planned performance strategies and information in respect of
additional information. I have not audited these schedules and future periods that may be included as part of the reported
accordingly, I do not express an opinion on them. performance information. Accordingly, my findings do not
extend to these matters.

DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2021/22 175