Page 250 - DSD ANNUAL REPORT 2022-2

DISASTER RELIEF FUND PART E: FINANCIAL INFORMATION
Notes to the Financial Statements of the Disaster Relief Fund for the year
ended 31 march 2022

9.1.3 Financial Assets
2021/22 2020/21
R’000 R’000
Cost 31,314 30,291
Interest Accrued 1,169 1,182
Closing Balance 32,483 31,473

9.1.4 Liquidity Risk
Liquidity risk is the risk that the Disaster Relief Fund will not be able to meet its financial obligations as they fall due. The Disaster
Relief Fund’s approach to managing liquidity is to ensure that the investment terms chosen will ensure that it will always have
sufficient liquidity to meet its liabilities when due. The Disaster Relief Fund monitors its cash flow requirements and optimises its
cash return on investments.

2021/22 2020/21
Cash and Cash Equivalents
R’000 R’000
Cash and balances with banks 872 1,031
Investments 31,611 30,442
Total 32,483 31,473

9.1.5 Interest Rate Rwisk
The Disaster 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 capitalised and will therefore not affect
the operations of the Disaster Relief Fund.

2021/22 2020/21
R’000 R’000
Change Effective Rate Effective Rate

Investment (0,19%) 3,69% 3,88%

9.1.6 Interest risk sensitivity analysis

2021/22
R’000
Investments
31,611 30,442
0.19% interest fluctuation impact 60.06 821.93

9.1.7 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.

9.1.8 Price Risk
Due to the nature and extent of the Fund, there is no exposure to price risks.
10. Cash and Cash Equivalents
2021/22 2020/21
Cash - Bank Deposits 872 1,031
Cash - Corporation for Public Deposits 31,611 30,442
Total 32,483 31,473

Credit quality of cash at bank and short-term deposits, excluding cash on hand.
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.

250 DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2021/22