Page 260 - DSD ANNUAL REPORT 2022-2

PART E: FINANCIAL INFORMATION REFUGEE RELIEF FUND
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Notes To The Financial Statements Of The Refugee Relief Fund For The Year
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Not es t o the Financial Stat ements o Of The R efuge e R elief Fund For The Y ear
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ended 31 March 2022
Ended 31 March 2022
Ended 31 March 2022
5.1.2 Credit Risk
Credit risk is the risk of financial loss to the Refugee Relief Fund if a financial institution to a financial instrument fails to meet its
contractual obligations.
The Refugee Relief Fund’s exposure to credit risk is influenced only by the individual characteristics of the financial institutions
where funds are deposited or invested. Reputable financial institutions are used for investing and cash handling purposes.
2021/22 2020/21
R’000 R’000
Cost 651 655
Additions during the year (7) (4)
Closing Balance 644 651
5.1.3 Liquidity Risk
Liquidity risk is the risk that the Refugee Relief Fund will not be able to meet its financial obligations as they fall due. The Refugee
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 Refugee Relief Fund monitors its cash flow requirements and optimizes its
cash return on investments.
2021/22 2020/21
R’000 R’000
Cash and Cash Equivalents
Cash and balances with the banks 9 10
Investment 635 641
Total 644 651

5.1.4 Interest Rate Risk
The Refugee 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 Refugee Relief Fund.
2021/22 2020/21
Change Effective Rate Effective Rate

Investment (0.13%) 3.77% 3,9%
Interest risk sensitivity analysis
2021/22 2020/21
Investment 635 641
0.13% interest fluctuation impact 0.83 18.65

5.1.5 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.

5.1.6 Price Risk
Due to the nature and extent of the fund, there is no exposure to price risks.
6. Cash and Cash Equivalents
2021/22 2020/21
R’000 R’000
Cash - Corporation for public deposits 635 641
Total 644 651

The credit quality of cash at the 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 ra tes

DEPARTMENT OF SOCIAL DEVELOPMENT ANNUAL REPORT 2021/22 260