DSBD Annual Report 2015/16 Overview

DSBD ANNUAL REPORT 2015/16 Presentation to the Portfolio Committee 12 October 2016

Presentation Outline • Vision, Mission and Strategic Objectives • Overall Performance and Financials • Performance by Programme and Financials • Financial Report • Auditor-General SA Report

Mandate Vision Where we want to be A radically transformed economy through effective development and increased participation of SMMEs and cooperatives in the mainstream economy To create a conducive environment for the development and growth of small businesses and cooperatives through the provision of enhanced financial and non-financial support services, and leveraging on public and private procurement Mission Why we are here Mandate How we will deliver Lead an integrated approach to the promotion and development of small businesses and cooperatives Values How we will behave Customer-focused Integrity Honesty Efficiency Accessibility Commitment

Strategic Objectives Alignment to government priorities Small Business Development strategy objectives Medium Term strategic Framework (MTSF): 5 years National Development Plan (NDP) Vision 2030 Facilitate development & growth of small businesses Outcome 4: Decent employment Chapter 3: Economy that will create jobs Facilitate radical economic transformation Advocate for regulatory environment conducive Chapter 6: Inclusive and Integrated economy Outcome 7: Rural Development Facilitate partnerships within all spheres of government and the private sector

Overall Performance for 2015/16

Overall Performance • DSBD’s maiden Annual Report since inception in 2014, • Delivered under constrained budget; • Launched National Gazelles, Finfind, Nibus, New Generation Cooperative model • Programme Review – craft vision and service delivery model • Minister reached out to the public & stakeholders creating awareness on services and agencies.

Overall Performance Co-operatives: • Linking to critical market value-chains, mostly in the agricultural sector; • Skills development – 227 through partnerships; • Funding – 246 primary cooperatives funded through CIS; • Incubations Support Programme: Not achieved, Enterprise Incubation Programme being implemented in 2016/17.

Overall Performance Informal Businesses: • Business skills development – the roll out of the Informal Traders Upliftment Programme (ITUP), 1037 (vs 1000) businesses trained; • Infrastructure development and upgrade – pilot programme not successful, Dept revised guidelines – align approach with development plans.

Performance Overview Support for Entrepreneurship: • Collaborations with TVET colleges; 5 Centres for Entrepreneurship established; • Each institution incubated 30 learners each year, benefiting 150 graduates and communities • Centres launched in KZN (Durban University of Technology); Limpopo (Vhembe TVET); NC (Vaal University of Tech, Upington); NW (Orbit College); EC (Ikhala TVET).

Centres for Entrepreneurship Launched Centre for Entrepreneurship in collaboration with TVET College

Overall Performance Co-location: • Integrated complimentary services (Seda, Sefa, & other partners) to increase business support services in townships and rural areas; • 29 co-location points established across the country.

Co-location – increase accessibility

Achievement Guidelines

Programme 1 performance 2015/16

Performance summary: Programme 1

Financial Performance overview • DSBD spent 97.5% (i.e. underspent of 2.5% or R28.6 million) of the overall budget including transfers • DSBD spent 83.2 % of the budget excluding transfers (i.e. underspent by 16.8% or R28.5 million)

Financial Performance Overview

Financial performance per economic classification 2015/16

Reasons for Variance 2015/16

Revenue performance 2015/16 DSBD is not a revenue generating entity and the R121 thousand collected is mainly for rental parking from officials, commission earned on payroll deductions (R46) and recoveries from the Cooperatives Incentives Scheme (CIS) clients (R68 thousand)

Auditor-General report 2015/16 Audit Outcome • The department obtained an unqualified audit opinion. • One non-compliance matter worth R1.8 million – irregular expenditure for not going on an open bid for services exceeding R499 999.99 • Material misstatements to the Annual Financial Statements and Predetermined objectives that were corrected before the audit was finalised • The management report issued by the Auditor-General for the 2015/16 financial year reflected 35 findings

Management Report findings summary per area 2015/16 An audit matrix has since been developed to monitor progress on a monthly basis. Quarterly, the Audit Committee is provided with progress reports.

Way Forward Implement the APP under new objectives, programmes; Forge partnerships with the rest of government, partners to deliver on mandate; “Unlocking the potential of SMMEs and cooperatives” – Pillar of the Nine Point Plan, NDP Vision 2030; Address and improve on AG findings.

Thank you! Re a leboga!

DSBD Annual Report 2015/16 Overview