GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 2 ANNUAL REPORT

CONTENTS

PART A: GENERAL INFORMATION...... 6 1. DEPARTMENT GENERAL INFORMATION...... 7 2. LIST OF ABBREVIATIONS/ACRONYMS...... 5 3. FOREWORD BY THE MEC...... 8 4. REPORT OF THE ACCOUNTING OFFICER...... 11 5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT...... 18 6. STRATEGIC OVERVIEW...... 19 6.1. Vision...... 19 6.2. Mission...... 19 6.3. Values...... 19 7. LEGISLATIVE AND OTHER MANDATES...... 19 8. ORGANISATIONAL STRUCTURE...... 21 9. ENTITIES REPORTING TO THE MEC...... 22 PART B: PERFORMANCE INFORMATION...... 23 1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES...... 24 2. OVERVIEW OF DEPARTMENTAL PERFORMANCE...... 25 2.1 Service Delivery Environment...... 25 2.2 Service Delivery Improvement Plan...... 25 2.3 Organisational Environment...... 28 2.4 Key policy developments and legislative changes...... 28 3. STRATEGIC OUTCOME ORIENTED GOALS...... 29 4. PERFORMANCE INFORMATION BY PROGRAMME...... 31 4.1 PROGRAMME 1: ADMINISTRATION...... 31 4.2 PROGRAMME 2: INTEGRATED ECONOMIC DEVELOPMENT SERVICES...... 33 4.3 PROGRAMME 3: TRADE AND SECTOR DEVELOPMENT...... 35 4.4 PROGRAMME 4: BUSINESS REGULATION AND GOVERNANCE...... 36 4.5 PROGRAMME 5: ECONOMIC PLANNING...... 47 5. TRANSFER PAYMENTS...... 55 5.1. Transfer payments to public entities...... 55 6. CONDITIONAL GRANTS...... 55 6.1. Conditional grants and earmarked funds paid...... 55 7. DONOR FUNDS...... 55 8. CAPITAL INVESTMENT...... 55 PART C: GOVERNANCE...... 56 1. INTRODUCTION...... 57 2. RISK MANAGEMENT...... 57 3. FRAUD AND CORRUPTION...... 58 4. MINIMISING CONFLICT OF INTEREST...... 58 5. CODE OF CONDUCT...... 58 6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES...... 58 7. PORTFOLIO COMMITTEES...... 59 8. SCOPA RESOLUTIONS...... 60 9. PRIOR MODIFICATIONS TO AUDIT REPORTS...... 63 10. INTERNAL CONTROL UNIT...... 64 11. INTERNAL AUDIT AND AUDIT COMMITTEES...... 64 12. THE PROMOTION OF ACCESS TO INFOMRATION ACT, 2000 (ACT NO.2 OF 2000) (PAIA) 66 14. AUDIT COMMITTEE REPORT...... 68 PART D: HUMAN RESOURCE MANAGEMENT...... 74 1. INTRODUCTION...... 75 PART E: FINANCIAL INFORMATION...... 145 1. REPORT OF THE AUDITOR GENERAL...... 147 2. ANNUAL FINANCIAL STATEMENTS...... 150

ANNUAL REPORT 4 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT LIST OF ABBREVIATIONS/ACRONYMS

ADRS Applied Development Research Solutions HOD Head of Department AFS Annual Financial Statements ICT Information Communications Technology AGSA Auditor General of South Africa IDZ Industrial Development Zone AIDC Automotive Industry Development Centre IGR Inter-Governmental Relations AO Accounting Officer ISA International Standards on Auditing AOG Agency Oversight and Governance JMP Jewellery Manufacturing Precinct APP Annual Performance Plan MA Management Authority ASP Automotive Supplier Park MAL Maropeng a’ Afrika Leisure BBBEE Broad Based Black Economic Empowerment MEC Member of the Executive Council BRG Business Regulation and Governance. MOA Memorandum of Agreement CAP Co-operative Assistance Programme MPSA Minister of Public Service and Administration CCBSA Coca-Cola Beverages South Africa MPL Member of Parliament CF Community Fund MTEF Medium Term Expenditure Framework CFI Co-operatives Financial Institutions MSC Modified Cash Standards CFO Chief Financial Officer NACH National Anti-Corruption Hotline COHWHS Cradle of Human Kind World Heritage Site NGO Non-Governmental Organisations ConHill Constitution Hill NPA National Prosecuting Authority CSD Central Supplier Database OHS Occupational Health and Safety CSI Corporate Social Investment ORTIA OR Tambo International Airtime COVID-2019 Coronavirus Disease 2019 PACCC Provincial Anti-Corruption Coordinating Committee DDI Domestic Direct Investment PFMA Public Finance Management Act DFI Development Finance Institutions PPP Public Private Partnerships DID Department of Infrastructure Development PSEF Public-Sector Economists Forum EMT Executive Management Team RAMC Risk and Audit Management Committee EU European Union RFQ Request for Quotation EXCO Executive Council RMU Risk Management Unit FDI Foreign Direct Investment RWOEE Remunerative Work Outside the Employee’s FIR Fourth Industrial Revolution Employment GAS Gauteng Audit Services SAPS South African Police Service GCR Gauteng City Region SCM Supply Chain Management GDP Gross Domestic Product SCOPA Standing Committee on Public Accounts GDED Gauteng Department of Economic Development SDIP Service Delivery Improvement Plan GDEDAE Gauteng Economic Development, Agriculture SEZ Special Economic Zones and Environment SITA State Information Technology Agency GEM Gauteng Entrepreneurship Model SME Small Medium Enterprise GEMS Government Employees Medical Scheme SMME Small Medium and Micro Enterprises GEP Gauteng Enterprise Propeller SMT Senior Management Team GGB Gauteng Gambling Board SOPA State of the Province Address GGDA Gauteng Growth and Development Agency SP Strategic Plan GGT Growing Gauteng Together TBR Township Business Renewal GIDZ Gauteng Industrial Development Zone TER Township Economy Revitalisation GITRA Gauteng Industry Transformation and Regulatory Authority TIH The Innovation Hub GLB Gauteng Liquor Board TMR Transformation, Modernisation and Re-industrialisation GPG Gauteng Provincial Government TR Treasury Regulations GRAP Generally, Recognised Accounting Practices WCRD World Consumer Rights Day GTA Gauteng Tourism Authority WHO World Health Organisation GTSS Gauteng Tourism Sector Strategy

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 5 GENERAL PART A INFORMATION

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 6 ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GENERAL INFORMATION PART A

DEPARTMENT GENERAL INFORMATION

PHYSICAL ADDRESS: Umnotho House 56 Eloff Street Marshalltown Johannesburg

POSTAL ADDRESS: Private Bag 091 Marshalltown 2107

TELEPHONE NUMBER/S: +27 (0) 11 355 8000 FAX NUMBER: +27 (0) 11 355 8730 EMAIL ADDRESS: [email protected] WEBSITE ADDRESS: www.gauteng.gov.za

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 7 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART A FOREWORD BY THE MEC

Gauteng, which is Africa’s seventh biggest economy, proceeded with its plans to boost aggregate demand, using government spending and investment facilitation and promotion as tools to kickstart economic growth and set the economy on an inclusive growth path in order to bring about socio-economic transformation and create a more just and equitable city region. Household and government consumption remain key drivers of economic growth in this regard and one of the great challenges we are confronted with remains to improve our global competitiveness, reducing the cost of doing business and improving the ease of doing business within our city region in pursuit of that objective.

Hosting the Africa Investment Forum was one of the key achievements. The Department did this in order to attract both domestic and foreign direct investment to all the five development corridors of the province, bringing in the private sector as partners in charting a development path forward. The Tshwane Automotive Hub Special Economic 1. EXECUTIVE SUMMARY Zone was launched, signaling the move towards the re- industrialisation of the Gauteng City Region’s economy 1.1 FOREWORD BY THE MEC and positioning the province as an investment-friendly South Africa’s gross domestic product shrunk by an destination with enhanced manufacturing capacity and annualised rate of 2% quarter-to-quarter, in the first three increased export potential. months of 2020, following a 1.4% contraction in the prior quarter, with the global Covid-19 virus outbreak having Through the AIDC at the Tshwane Automotive Hub Special negatively affected domestic economic activity even Economic Zone, the Department have developed a world- before the nation-wide lockdown. class organisation, which specialises in skills development and training, enterprise development, incubation The South African economy went through turbulent times programmes, management of incentive programmes and in 2019. The weak global growth, growing trade tensions offered state-of-the-art manufacturing support facilities between the USA and China and commodity price volatility for the automotive sector. In the automotive sector, a total were among the factors that contributed to the anaemic of 3 485 people underwent specialised training against economic performance. Ratings downgrades, growing the annual target of 3 100 across the various AIDC training public debt and the poor performance of our state owned sites during the period under review. entities also contributed to a very challenging economic environment. This made it very difficult for the economy to Work proceeded in terms of the design, project perform at a level that is sufficient to enable us to fight rising management, development and operationalisation of the unemployment, growing inequality and the social unrest OR Tambo IDZ, which has an agro-processing plant in the that are a direct result of people’s unmet expectations. northern precinct and a jewellery manufacturing precinct in the southern part. This IDZ is contributing towards Amid this tough climate, the state went ahead with its further developing the province’s agro-processing and plans to grow and transform the economy through using manufacturing, as well as minerals beneficiation capacity legislative instruments and its massive procurement and creating an investment platform for public/private budget to attract and re-direct investment to deal systemic partnerships and direct developmental investment. and structural issues that act as a bottleneck to inclusive growth, thereby preventing the majority of the populace An analysis with regard to the reconfiguration of sector from participating meaningfully in the mainstream and industry development along the provisions of the economy. GCR Economic Development Plan and the GGT 2030

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was conducted with the purpose of ensuring that the marginal to the mainstream economy and increase their Department effectively and efficiently implements economic participation. The Gauteng Enterprise Propeller the GCR Economic Development Plan, GGT 2030 and (GEP) was at the forefront of this, providing non-financial sector strategies. For the 2019/20 financial year, the support to nearly 2 058 SMMEs against a target of 2 000 for performance of the provincial government in supporting the year under review. This comprised of skills development, various sectors of the economy was tracked on a quarterly marketing tools, equipment and the formalisation of small basis. To this end, the agencies of the Gauteng Department township businesses. Continued efforts to formalise of Economic Development were at the forefront of township-based informal businesses resulted in support sectorial interventions that were implemented, with the being provided to 1 000 informal businesses, with steps performance thereof tracked continuously. having been taken to not only formalise them, but also improve their investment readiness and attractiveness. During the financial year under review, the Department adopted an outline on rationalisation of its tourism mandate, In line with the Gauteng Entrepreneurship Model, the GEP restructuring the tourism portfolio and separating it into also facilitated the linking of small businesses with off- the tourism supply and demand functions. The functions take agreements and strategic procurement opportunities of tourism supply will be undertaken by the Department in the province. The establishment, development and and the Gauteng Tourism Authority will focus strictly on refurbishment of industrial parks as part of catalytic demand-side marketing and promotion of Gauteng as a economic infrastructure for the township economy, preferred destination for visitors. continued in the year under review, in pursuit of the seamless economic integration in the province. The tourism sector managed to surpass the annual target of 26 domestic destination marketing initiatives, achieved The business regulation and governance unit facilitated 26 in total. The sector, however, was the hardest hit by the the Grow My Business programme, which offers financial corona virus pandemic and as a result some of the annual and business training NQF level 2 to township based Spaza targets were not met, with the sector managing to generate shop owners and hawkers. In total, 1281 Spaza shop owners R2 billion against the target of R1.9 billion for the 2019/20 and hawkers were trained through the Grow My Business financial year as one example of this. Programme.

On the innovation front, The Innovation Hub in Tshwane Other priorities during the period under review included continued to offer several incubation programmes in the programmes to promote entrepreneurship, leveraging bio-economy (agro-processing and pharmaceuticals), on strategic partnerships to provide skills development, smart industries (ICT and advanced manufacturing) and mentorship and incubation opportunities for entrepreneurs the green economy (water purification, waste management and targeted support aimed at addressing the persistent and renewable energy), along with our ICT Ekasi Labs challenge of youth unemployment through the Youth programme. The Department also continued to drive the Accelerator Programme. Township Economy Revitalisation (TER) programme. The Gauteng Liquor Board (GLB) initiated the Physical In line with TER, we completed the Township Development Verification Project during the 2017/18 financial year for policy as a precursor to the development of a Township a three-year rolling period. The objective of the project Development Bill into law. Four (4) workshops were held was to verify all liquor outlets within Gauteng City Region. with constitutional law experts as part of the stakeholder The outcomes of the project will be used as a baseline and engagement process, in order to garner technical inputs point of reference. The information is critical in decision in the policy drafting process. State Law Advisors have making that relates to compliance and enforcement by law assumed the responsibility to draft the Bill, which will be enforcement agencies. The project was completed on the routed to the Legislature for approval. This Act would be a 31st of March 2020 as planned. significant, game-changing initiative that would take TER to the next level. Migration to an automated system for liquor applications has been stalled by some technical glitches. We are in During the year under review, 10 township seminars and the process of appointing a new service provider to bring exhibitions were held across the Province. These sessions the system to its optimal use and gradually migrate the were meant to promote products manufactured in the manual application process to an automated platform. township, as part of helping to create market access for Modernisation of systems and services rendered by township enterprises. government is critical in improving our city region’s global competitiveness. The automation project will be a game Small enterprise support interventions were centred changer when fully implemented and will also enhance the around the provincial Township Economy Revitalisation ease, and reduce the cost, of doing business in the liquor (TER) Strategy which seeks to move small enterprises from industry in Gauteng.

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 9 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART A FOREWORD BY THE MEC

Regulation of the liquor industry remains the GLB’s core mandate. Finalisation of the shebeen permit issue remains one of the entity’s core focus areas as it enhances revenue collection capacity and presents an opportunity to properly regulate the industry using a standardised legal framework.

Amidst a tough economic environment, we worked relentlessly to fulfil our mandate as custodians of economic develop- ment in the Gauteng City Region, through the implementation of programmes and strategies aimed at having catalytic impact, driving and promoting economic development with the aim of building an economy for the many and not the few, an economy that offers opportunities to all and not just some, an economy that is more inclusive and equitable to the benefit of Gauteng citizens.

______Ms. Winifred Morakane Mosupyoe (MPL) MEC for Economic Development, Agriculture, Environment and Rural Development

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inclusive and sustainable economic growth that stimulates jobs within the Gauteng City Region”. Thus, the Depart- ment aims for an economic growth that over and above be- ing sustainable, should also be job creating desired jobs, this will be achieved over the coming years, in collabo- ration with its strategic partners. The following key pro- grammes therefore continue to be pursued over the MTEF:

■■ Industrialisation and Multi-Tier Special Economic Zones; ■■ Agri-Industrialisation and Market Access; ■■ Township and Solidarity Economy; ■■ Investment Facilitation and Trade Promotion; and ■■ Tourism Growth and Development and Inner-City Revitalisation.

The endeavour to have an inclusive economy required that the Department deepens its understanding of the dynamics of the township economy. To that extent, township enterprise surveys have in the subsequent years been undertaken in order to build a comprehensive database on the township economy. Furthermore, the Department has also enhanced and refined its approaches to evidence- 1. OVERVIEW OF THE OPERATIONS based economic interventions and policy-making by providing up-to-date economic data, information and OF THE DEPARTMENT insights through the Gauteng Economic Barometer. It The Department has in the period under review continued is important to note and underscore the fact that the to implement on its mandate, albeit against the backdrop Economic Barometer here mentioned has a unique built- of challenging global and domestic economic conditions. in capability to measure the Township Business Confidence South Africa’s GDP contracted by 1.4% during the fourth Index in the major clusters. This is the first of its kind in quarter of 2019/20. This coincided with the downgrade the country. This innovation is also complemented by a of the country’s sovereign credit rating to sub-investment further initiative by the Department, which is the Gauteng grade. The situation was further exacerbated by the Economic Modelling and Capacity Building Programme. sudden emergence and rapid spread of the fatal novel This facility enables the provincial government to prioritise corona virus during the last quarter as well. In light of economic sectors, sub-sectors and economic interventions this, the President declared a National State of Disaster in order to improve on inclusive economic growth and job in response to the spread of the corona virus disease of creation going forward. 2019 (COVID-19), which the WHO had already declared a pandemic. The ensuing national lockdowns, in mitigating Small Medium Enterprises (SMEs) are lauded as the against the proliferation of the disease, took a toll on the impetus to economic growth in medium sized economies global economy. The world economy, including South such as ours. Therefore, attention to the growth of SMEs Africa’s, ground to a near halt, resulting in undesirable is fundamental to the Department’s mandate. There has consequences such as company closures, staff lay-offs been an increase in the participation of small businesses and lower productivity across the various sectors of the in the mainstream economy through various interventions economy. undertaken by the Department, which include financial support, business development support, formalisation and Prior to the onset of the COVID-19 pandemic, the economy access to markets and economic opportunities. The key of the country was not yielding the desired growth figures. focus is on under-served regions such as the West Rand, The biggest challenge posed by the lethargic growth of the Sedibeng and Ekangala Central. During the period under economy was the high unemployment rate, particularly review, there has been increased participation of small among the youth. As a measure to prevent further erosion businesses in the mainstream economy. Nonetheless, most of the economy, the Gauteng Provincial Government de- businesses remain informal and continue to operate on the veloped a roadmap, Growing Gauteng Together 2030 (GGT periphery, despite these interventions. The Department 2030), to reverse the slow growth of the provincial econo- will relentlessly continue devising policy interventions my. In order to align with the objectives of GGT 2030, the to ensure equal access to economic opportunities in Department has had to re-craft its impact statement to “An order to bring about an inclusive economy. As engines of

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growth and employment creation, SMEs and Cooperatives 220. This is attributed to partnerships established with are critical in transforming the economic landscape and liquor traders’ associations and industry stakeholders creating sustainable businesses. who partnered with the Gauteng Liquor Board in conducting the liquor awareness activities; Much work has gone into the reprioritisation of the tourism mandate. The tourism planning mandate is now ■■ Five (5) beneficiaries from the distressed regions were the responsibility of the Department, thus leaving the put through the selection process and recommended agency to focus on tourism development, management for the 2019/2020 CSI program; and marketing. In the year under review, the tourism sector ■■ The Department successfully facilitated the timeous generated R2 billion against the target of R1.9 billion. In signing of the Shareholder Compacts (2019/2020) the same period, 275 tourism enterprises have received by the MEC (Shareholder) and the boards of the four assistance against the annual target of 300. On the job front, tourism has also created 11 828 jobs against the respective agencies of GDED. target of 14 000. The under-achievements are largely due ■■ Two (2) impact studies were successfully conducted in to the fact that the sector was negatively affected by the the period under review; restrictions on travel and social distancing as a result of the ■■ The performance of various sectors of the economy COVID-19 pandemic that was declared towards the end of both nationally and provincially was tracked; and the fourth quarter. sector-based interventions were reported on in the In terms of economic infrastructure, the Department four quarters of 2019/20 financial year; and invested in industrial infrastructure as part of the efforts to ■■ Five (5) Co-operatives Financial Institutions (CFIs) re-industrialise townships. The Department has constructed were supported during the year under review. The 63,22% of the Jewellery Manufacturing Precinct (JMP) Department continued with the three-year project superblock at the ORTIA Special Economic Zones (SEZ) on the Gauteng Econometric Modelling and Capacity against the annual target of 60%. The construction of Building Programme. Building E4 at the Automotive Supplier Park (ASP) was also completed during the 19/20 financial year. The The GDED – in partnership with the United Nations construction of these strategic economic infrastructures Development Programme, Business Doctors and PPC is crucial for repositioning of the Gauteng City Region Cement – hosted the inaugural Provincial SMME Summit in as a premier investment destination, furthermore in Midrand during the month of December 2019. The purpose response to resuscitating the manufacturing sector of this summit was to create a platform for access to market and re-industrialising Gauteng, the province has since for township-based SMMEs. The summit was attended by prioritised the implementation of corridor-based SEZs. 200 selected and trained SMMEs that were market-ready. The establishment, development and refurbishment of Over 15 big corporates attended the summit and shared industrial and Agri-parks is at the centre of ensuring the information about the available opportunities for SMMEs seamless integration of the second economy into the in their respective value chains. The summit was also mainstream economy. Tshwane Automotive Hub SEZ was attended by four sister provincial government departments also launched in the period under review signalling a move who also shared information about procurement towards re-industrialisation of the Gauteng City Region. opportunities. Other key stakeholders in attendance were the development finance institutions from both the private In the period under review, the Department met 90% of and public sector. The summit was a resounding success, targets from the key performance indicators that were and this is evidenced by the fact that some of the SMMEs set out in the 2019/20 Annual Performance Plan. The key got business opportunities. achievements of the Department’s actual performance against the targets are as follows: 2. OVERVIEW OF THE FINANCIAL ■■ A total of 445 outreach activities were conducted, RESULTS OF THE DEPARTMENT exceeding the target of 410. Various activities took During the financial under review, the total expenditure place in partnership with public and private sector amounted to R1 558 billion against the adjusted stakeholders; appropriation budget of R1 638 billion which constitute ■■ A total of 785 consumer complaints were resolved 95% spent for the year. The total underspending amounts in the year under review, of that 676 were resolved to R79 312 million (5%). within 60 working days which equates to 86%; Factors that contributed to the five percent (5%) ■■ The total number of Liquor Awareness Activities underspending are as follows: conducted was 222 against an annual planned target of

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■■ High number of vacant positions, especially at SMS ■■ All budget holders are required to sign a Memorandum level; of Agreement (MOA) in which senior management ■■ Service Level Agreements and Memoranda of commit and agree to spend 100% of their allocated Understanding not signed by the end of the financial budget. year; ■■ Outstanding invoices that were only received after 2.1 Departmental Receipts final year-end’s payment run cut-off time; and The Department’s main source of funding is the equitable share, which was spent towards the achievement of ■■ Tenders awarded, but services not rendered. departmental goals, priorities and the overall mandate Management is aware of this underspending and the effect based on the Provincial Government’s programme of action it has on service delivery. The Department has since devel- of Transformation, Modernisation and Re-industrialisation oped mitigation measures to avoid future underspending, (TMR) and Township Economy Revitalisation (TER) and the which include: GGT 2030 priorities. The Gauteng Gambling Board is one of the Department’s ■ Senior Managers to include a minimum weight of 10 ■ agencies and it generates its own revenue mainly from scores in their respective Performance Agreement to gambling taxes and license fees drawn from casino, horse be signed during the 2020/21 PMDS cycle; racing taxes and bookmakers. Other sources of revenue in- ■■ Operational and Performance Plans to be tracked on a cluded sales of goods and services other than capital as- monthly basis via the budget council meetings; and sets, interest, dividends and rent on land, as well as finan- cial transactions in assets and liabilities.

TABLE. 2.1 SCHEDULE OF BUDGET MOVEMENTS 2019/20 2018/19 Actual Actual (Over)/Under (Over)/Under Departmental receipts Estimate Amount Estimate Amount Collection Collection Collected Collected R’000 R’000 R’000 R’000 R’000 R’000 Tax Receipts 1 048 217 1 175 636* (127 419) 1 039 864 1 044 632 (4 768) Sale of goods and services other than capital assets 524 432 92 433 481 (48) Interest, dividends and rent on land 3 901 4 154 (253) 2 404 3 641 (1 237) Sale of Capital assets - - - - 89 (89) Financial transactions in assets and liabilities 239 327 (88) 324 485 (161) Total 1 052 881 1 180 549 (127 668) 1 043 025 1 049 328 (6 303)

* The tax receipts amount of R1,175 billion is disclosed at net (gross is 1,286 billion) after deducting 8% commission payable to GGB.

2.2 Reasons for Over Collecting The annual revenue collection target was R1,053 billion, the Department collected R1,180 billion as at 31 March 2019, translating into 112% collection for the year. The R127 million (12%) over collection is attributed to the following intervention made by GGB:

Casino and Bookmakers – the increment was mainly attributed to the growth in sport taxes and levies related to sporting activities and an increase in Bookmakers’ applications.

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 13 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART A REPORT OF THE ACCOUNTING OFFICER

TABLE 2.2. ANALYSIS PER PROGRAMME 2019/20 2018/19 (Over) / Final Actual (Over)/ Under Final Actual Programme Name Under Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure R’000 R’000 R’000 R’000 R’000 R’000 Administration 303 055 243 712 59 343 255 503 225 482 30 022 Integrated Economic Development Services 245 771 245 771 - 254 544 254 388 156 Trade and Sector Development 870 073 870 073 - 863 821 863 771 51 Business Regulation and Governance 110 468 105 724 4 744 61 339 58 239 3 100 Economic Planning and Research 108 925 93 700 15 225 101 192 94 481 6 711 Total 1 638 292 1 558 980 79 312 1 536 399 1 496 359 40 040

PROGRAMME 1: ADMINISTRATION PROGRAMME 5: ECONOMIC PLANNING AND Administration Programme was allocated a final adjusted RESEARCH appropriated budget of R303 million and the Programme The total spent under Economic Planning is R93,7 spent an amount of R243,7 million, which equates to million against the final adjusted appropriated budget of 80% spent for the year. The underspent amount is R108,9 million which equates to 86% spent for the year. R59 million, which translates to 20% of the overall figure. The underspending of R15,2 million (14%) is due to the The underspend is made-up of accruals for invoices following reasons: received but not processed for payment amounting to R4,6 million, R420k relating to payables for services ■■ R5 million is attributed towards compensation of received but not yet invoiced, R39,9 million commitments employees’ vacant positions, including those at senior for which purchase orders have been issued (including a management level; purchase order for R5,2 million for the procurement of ■■ Non-transfer of the budget allocated for the project computer equipment), R6 million is under compensation due to service level agreements and memorandum of of employees due to vacant posts which remained unfilled by the end of the financial, and the outstanding 2018/19 agreement not yet approved during the financial year senior management notch increase payments. R2,2 million; ■■ Accruals for invoices received but not processed for PROGRAMME 4: BUSINESS REGULATIONS AND payment amounting to R3,6 million, commitments GOVERNANCE for purchase orders issued amount to R705k and commitments for which purchase orders have been Business Regulations and Governance spent an amount of R105,7 million against the final adjusted appropriated issued to the value of R86k; budget of R110,4 million which equates to 96% spent for ■■ An amount of R2,1 million as a result of the delays in the year. The amount of R4,7 million (4%) underspending the procurement of the regional economic profile data is broken down as follows: subscriptions for the Barometer; and ■■ R4,2 million underspending is attributed to vacant ■■ An amount R1,5 million transferred towards the senior management positions Sedibeng municipality for the Aerotropolis feasibility ■■ Accruals for invoices received but not processed for study that was finalised late, resulting in the funds not payment amounting to R360k; being transferred before the end of the financial year. ■■ Commitments for which purchase orders had been issued amount to R14k; and ■■ Payables for services received but not yet invoiced to the value of R79k.

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2.3 Virements The Gauteng Provincial Treasury approved the Department’s application for virement and the shifting of funds. The pur- pose of the virement application was to defray overspending that had occurred within and between programmes. The schedule of the respective implications is detailed in the table 2.3 below.

TABLE 2.3. SCHEDULE OF BUDGET VIREMENTS Adjusted Actual Expenditure Virements & Shifts Final Appropriation Programme Appropriation R’000’ R’000’ R’000’ R’000’ Administration 315 840 243 712 (12 785) 303 055 Integrated Economic Development Services 245 771 245 771 - 245 771 Trade and Sector Development 868 201 870 073 1 872 870 073 Business Regulation and Governance 104 055 105 724 6 413 110 468 Economic Planning and Research 104 425 93 700 4 500 108 925 Total 1 638 292 1 558 980 - 1 638 292 3. PUBLIC PRIVATE PARTNERSHIPS agent of the trading entity over a period of two financial years (2019/20 and 2020/21). (PPP) The Department administers a PPP relating to the manage- 4. DISCONTINUED ACTIVITIES / ment of the visitor facilities of Sterkfontein and Maropeng in the Cradle of Humankind World Heritage Site. The two ACTIVITIES TO BE DISCONTINUED sites are jointly owned by Wits University and the Gauteng There were no discontinued activities or activities to be Provincial Government (GPG). discontinued in the Department during the year under review. Cradle of Humankind World Heritage Site, a trading entity of the Department, entered into a PPP arrangement and concession contract with Wits University and a private 5. NEW OR PROPOSED ACTIVITIES partner, which resulted in the establishment of Maropeng During the financial year under review the Department a’ Afrika Leisure (MAL) (Pty) Ltd to manage the visitor has adopted an outline on rationalisation of the tourism facilities of Sterkfontein and Maropeng in the World mandate. This process is key in providing an enabling en- Heritage site on behalf of GPG and Wits University. The vironment for a thriving an inclusive tourism economy concession agreement expired in 2015. in Gauteng by restructuring the tourism portfolio, there- by separating the tourism supply and demand functions. The Department has implemented the termination clause The functions of tourism supply will be undertaken by the with regards to movable assets by recording, accounting Department and the Gauteng Tourism Authority will fo- for and disclosing all the assets located at Maropeng visitor cus strictly on the demand-side marketing and promoting centre, the Hominin House Learner Facility and Maropeng Gauteng as a preferred destination for visitors. Boutique Hotel under Note 29 (page 215) of the annual financial statements. 6. SUPPLY CHAIN MANAGEMENT There has been a delay in the appointment of service During the financial year under review, the Department did providers to undertake a due diligence on the investment, not receive any unsolicited bids and continued to maintain liabilities, loan and revenue to ensure that the amount to be adequate Supply Chain Management (SCM) processes and disclosed are authentic and auditable. During the financial systems to ensure that the procurement of goods and year under year review, Gauteng Provincial Treasury services is fair, equitable, transparent and cost-effective approved a deviation from the normal procurement in line with the prescripts issued by National Treasury, process to appoint MAL to continue as the management Section 217(2) of the Constitution, Chapter 16A of the

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Treasury Regulations and all other relevant legislative and specific template as provided by National Treasury. regulatory prescripts. During the 2019/20, the GDED and the GLB mitigated The Department SCM took a posture that promoted signif- through internal controls systems and procedures the icant participation by implementing the Preferential Pro- findings raised by the office of the Auditor General in the curement Regulations, 2017, in support of the targeted management report. This process included the prevention groups to ensure their inclusion into mainstream economy of any recurrence of an adverse finding. of Gauteng through their own township enterprises. The institution also continued to report, address and imple- ment the 2018/19 resolutions of the Standing Committee 7. GIFTS AND DONATIONS RECEIVED on Public Accounts (SCOPA). IN KIND FROM NON-RELATED PARTIES 11. ACKNOWLEDGEMENTS There were no gifts and donations received in kind during First and foremost, I would like to thank the MEC, the year under review. Ms. Winifred Morakane Mosupyoe, for her continued leadership and guidance. A vote of thanks is extended to the Senior Management Team of the Department of 8. EXEMPTIONS AND DEVIATIONS Economic Development and Gauteng Liquor Board for RECEIVED FROM NATIONAL their commitment and contribution towards achieving the mandate and goals of the organisation. Last but not least, TREASURY a word of gratitude goes to our oversight bodies that assist The Department did not make an application that required the Department to move from strength to strength in terms exemptions from the Public Financial Management Act or of governance and compliance. Treasury Regulations or deviation from the National Trea- sury’s financial reporting requirements received for the 2019/20 and/or 2018/19 financial year. 12. CONCLUSION The Accounting Officer has duly considered all relevant legislation and has exercised informed judgement in terms 9. EVENTS AFTER THE REPORTING of information disclosed in this Annual Report. With careful DATE consideration of the prudent use of financial resources al- located to achieve the strategic goals and objectives of the The World Health Organisation declared COVID-19 a Department and Gauteng Provincial Government, mech- pandemic on 11 March 2020. In response, during the anisms to minimise inherent organisational risks and the televised address to the nation on 15 March 2020, President prevention of fraud and corruption have been implement- Cyril Ramaphosa declared the State of disaster in terms of ed throughout the period under review. The Department the Disaster Management Act 57 of 2002. In line with the has strengthened its governance structures that continued declaration and the Occupation Health and Safety Act 85 of to provide organisational policy directives as well as man- 1993, the 21-day nationwide lockdown was extended until agement oversight responsibilities. at least 31 May 2020, which impacted on the closure of the 2019/20 financial year and the attendant deadline for the submission of the financial statements of 31 July 2020. 13. APPROVAL AND SIGN OFF The Annual Financial Statements as set out on pages 150 to Based on the above, the lockdown hindered the Department 264 were approved by the Accounting Officer. from implementing the programmes and project planned for the 2020/21 financial years. As a result, the approved Annual Performance Plan and the appropriated budget allocation has to be re-prioritised and adjusted to make provision for the negative impact on the first quarter of the new financial year. 10. OTHER The Department prepares its Annual Financial Statements ______(AFS) in terms with Modified Cash Basis (MSC), while the Ms. Pumla Ncapayi Gauteng Liquor Board (GLB) prepares its own on an accrual Accounting Officer basis in compliance with Generally Recognised Accounting Practices (GRAP). Both institutions populate the AFS on a Gauteng Department of Economic Development

ANNUAL REPORT 16 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GDED staff consulting with members of the public during a township workshop.

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5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT Gauteng Provincial Legislature in session

To the best of my knowledge and belief, I confirm the following:

All information and amounts disclosed throughout the annual report are consistent.

The annual report is complete, accurate and is free from any omissions.

The annual report has been prepared in accordance with the guidelines on the annual report as issued by National Treasury.

The Annual Financial Statements (Part E) have been prepared in accordance with the modified cash standard and the relevant frameworks and guidelines issued by the National Treasury.

The Accounting Officer is responsible for the preparation of the annual financial statements and for the judgements made in this information.

The Accounting Officer is responsible for establishing and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the annual financial statements.

The external auditors are engaged to express an independent opinion on the annual financial statements.

In my opinion, the annual report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the department for the financial year ended 31 March 2020.

Yours faithfully

______Ms. Pumla Ncapayi Accounting Officer Gauteng Department of Economic Development

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6. STRATEGIC OVERVIEW ■■ Practice transparent, participatory and good governance at an internal level; and The mandate of the Gauteng Department of Economic ■ Foster high levels of professionalism, innovation, Development (GDED) is to facilitate, promote economic ■ growth and development in the province, with a targeted effectiveness, efficiency and the practice of Batho Pele commitment to focus on enhancing inclusivity of the econ- among the staff of GDED and all its implementation omy, while not neglecting to improve its competitiveness. agencies. In line with this mandate, the vision, mission and values for the Department are as follows: 7. LEGISLATIVE AND OTHER 6.1 Vision MANDATES A radically transformed, modernised and re-industrialised ■■ The mandate of the Gauteng Department of Economic economy in Gauteng, manifesting decent work, economic Development (GDED) is to facilitate and promote inclusion and equity. economic growth and development in the province, 6.2 Mission with a targeted commitment to focus on enhancing The mission of the GDED in pursuit of its vision is to: the inclusivity of the economy, while not neglecting to improve its competitiveness. ■■ Ensure radical transformation, modernisation and re-industrialisation of the Gauteng economy; Constitutional, National and Provincial Legislative Mandates ■■ Provide an enabling policy and legislative environment In terms of Schedule 4 (Part A) of the Constitution of the for equitable economic growth and development; and Republic of South Africa, 1996 (Act No. 108 of 1996), ■■ Develop and implement programmes and projects that provinces have concurrent legislative competence with will: the National Government in respect of, inter alia, urban and rural development. Casinos, racing, gambling and ■■ Revitalise Gauteng’s township economies; wagering as well as Consumer Protection are also areas of ■■ Build new smart, green, knowledge-based economies concurrent national and provincial legislative competence and industries; as per Schedule 4 (Part A) of the Constitution. Schedule 4 (Part B) provides for provincial and national legislatures to ■■ Ensure decent employment and inclusion in key have concurrent legislative competence in respect of local economic sectors; government matters such as municipal planning. In terms ■■ Facilitate radical economic transformation, of Schedule 5 (Part A), provinces have exclusive legislative modernisation and re-industrialisation; competence over provincial planning. Liquor Licencing is ■■ Include the marginalised sectors of women, youth also a functional area of exclusive provincial legislative and persons with disabilities in mainstream competence as per Schedule 5 (Part A) of the Constitution. Section 154 provides that the national and the provincial economic activities; and governments, by legislative and other measures, must ■■ Establish appropriate partnerships for delivery and support and strengthen the capacity of municipalities to ensure the GDED effectively delivers on its mandate. manage their own affairs, to exercise their powers and to perform their functions. 6.3 Values These values are informed by the GDED’s vision and mis- The South African Constitution requires that all spheres sion and they are: of government work together to address poverty, under- development, marginalisation of individuals and commu- ■■ Serve as a centre of excellence in leading radical nities and other legacies of apartheid and discrimination. economic transformation, modernisation and re- In addition to the Constitution, there are various related industrialisation of Gauteng’s economy; and relevant legislations and policies, that provide the ■■ Provide ethical, consultative and people-focused provincial government with its mandate and specifically services; guide the Gauteng Department of Economic Development ■■ Facilitate equity, redress and access to economic as it executes its mandate. opportunities and decent employment; ■■ Ensure that Gauteng’s economic profile reflects its demographic profile;

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Below is a list of the selected National and Provincial legislation.

National Legislative Mandate Tabling of the Budget Vote for the Department of Economic Development at the Gauteng Provincial ■ Constitution of the Republic of South Africa, 1996 ■ Legislature. ■■ Public Finance Management Act (PFMA), 1999 ■■ Promotion of Access to Information Act (PAIA), 2000 ■■ Employment Equity Act, 1998 ■■ National Archives and Record Service of South Africa Act, 1996 ■■ Promotion of Administrative Justice Act (PAJA), 2000 ■■ National Credit Act, 34 of 2005 ■■ Consumer Protection Act, 68 of 2008 ■■ Businesses Act, 1991 ■■ Public Service Act, 1994 ■■ Public Service Regulations, 2016 ■■ Skills Development Act, 1998 ■■ Preferential Procurement Policy Framework Act, 2000 ■■ National Small Business Act, 1996 ■■ Municipal Systems Act, 2000 ■■ Tourism Act, 2014 ■■ Cooperatives Act, 2005 ■■ Special Economic Zones Act, 2014 ■■ Code of Conduct for the Public Service ■■ Liquor Products Act, 1989 ■■ Intergovernmental Fiscal Relations Act, 1997 ■■ Broad Based Black Economic Empowerment Act, 2003 ■■ Intergovernmental Relations Framework Act, 2005 ■■ Batho Pele Principles

Provincial Legislative Mandate ■■ Gauteng Growth and Development Agency Act, 2012 ■■ Gauteng Enterprise Propeller Act, 2005 ■■ Gauteng Gambling Act, 1995 ■■ Consumer Affairs (Unfair Business Practices) Act, 1996 ■■ Gauteng Tourism Act, 2001 ■■ Gauteng Liquor Act, 2003

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8. ORGANISATIONAL STRUCTURE

OFFICE OF THE MEC

AGENCIES -GGDA -GEP -GGB -GTA -COH-WHS GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT -DINOKENG HEAD OF DEPARTMENT

DDG: Corporate DDG: Business Regulation DDG: Economic CD: Communications CD: Legal Advisory CD: Finacnial Director: Risk Director: Executive Management and Governance Planning Services Management Management Support

CD: Resource CD: Governance CD: Sector and Management Industry Development ANNUAL REPORT

CD: Strategic Planning CD: Liquor Affairs Monitoring and CD: Economic Evaluation Planning

CD: Consumer Affairs

CD: Inclusive Economy

Development

21 Planning GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART A GENERAL INFORMATION

9. ENTITIES REPORTING TO THE MEC The table below indicates the entities that report to the MEC.

Name of Entity Legislative Mandate Financial Relationship Nature of Operations

Gauteng Enterprise To primarily drive the The entity received Implementing agent of the Propeller revitalisation of township monthly allocation based Department economies and enhance on its Annual Performance the participation of Plan SMMEs and Co-ops in the Province’s mainstream economy.

Gauteng Gambling Board To regulate and The Gauteng Gambling Implementing agent of the transform the industry Board collected tax Department in a transparent, ethical, revenue for the benefit of equitable, competent and the fiscus. efficient manner for the benefit of all stakeholders

Gauteng Growth and To be the premier The entity received Implementing agent of the Development Agency catalyst of innovative monthly allocation based Department and sustainable growth on its Annual Performance and socio-economic Plan development within the Southern African region.

Gauteng Tourism To develop and promote, The entity received Implementing agent of the Authority co-ordinate and facilitate monthly allocation based Department responsible and on its Annual Performance sustainable tourism in Plan Gauteng

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1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES

The AGSA currently performs certain audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance against pre-determined objectives is included in the report to management, with material findings being reported under the Predetermined Objectives heading in the report on other legal and regulatory requirements section of the auditor’s report.

Refer to page 147 of the Report of the Auditor General, published as Part E: Financial Information.

Youth applying for jobs and skills development through the Tshepo 1 Million programme.

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2. OVERVIEW OF DEPARTMENTAL PERFORMANCE 2.1. SERVICE DELIVERY ENVIRONMENT The implementation of the Gauteng City Region Economic Development Plan (GCR EDP) is sector based and was devel- oped and implemented in 2019/20 financial year. Various interventions were put in place as deliverables in each of the identified sectors and performance in implementation was reported on a quarterly basis. However, it is worth noting that the majority of the economic sectors did not perform well in terms of jobs and growth for the period under review. This was equally the same for the country as the manufacturing sector experienced decline in output and employment. As a response to resuscitating the manufacturing sector and re-industrialising Gauteng, the province has since prioritised the implementation of corridor based special economic zones (SEZs).

The establishment, development, refurbishment of industrial parks and agri-parks is at the centre of ensuring seamless integration of the second economy into the main economy. For the financial year 2019/20, in a nutshell, the tourism sector was the hardest hit by the corona virus pandemic and as a result some of the annual targets were not met as planned. Tourism confirms that there were scheduled event that were to take place in March and due to the virus, they had to be cancelled. In the Automotive sector for the period under review, a total of more than 3 000 people underwent specialised training across the various AIDC training sites. Moreover, the Tshwane Automotive Hub Special Economic Zone was launched signaling the move towards re-industrialisation of the Gauteng City Region.

Through the creation of the creative industry steering committee, the Department in partnership and collaboration with creative industry stakeholders were able to assist SMMEs in the craft, music, animation and as well as the incubation programme.

2.2. SERVICE DELIVERY IMPROVEMENT PLAN The Department has completed a service delivery improvement plan. The tables below highlight the service delivery plan and the achievements to date.

MAIN SERVICES AND STANDARDS Main services Beneficiaries Current/actual Desired standard Actual achievement standard of service of service Consumer Citizens of Gauteng To investigate and To resolve ■■ 933 consumer Protection Service resolve all consumer complaints received; consumer complaints through ■■ 676 were resolved within complaints mediation and desired 60 working days; arbitration within 60 working ■■ 109 were resolved days. outside the desired standard; and ■■ 148 consumer complaints remain unresolved due to further investigations.

Liquor Licencing Citizens of Gauteng To issue liquor To process ■■ 2 100 liquor applications licences and liquor licences received; permits in applications within ■■ 1 250 liquor licences compliance with 90 days issued within 90 days; the Gauteng Liquor Act and ■■ 850 liquor applications rejected due to municipal bylaws or regulations.

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BATHO PELE ARRANGEMENTS WITH BENEFICIARIES (CONSULTATION, ACCESS ETC.) Current/actual arrangements Desired arrangements Actual achievements 441 Citizens and stakeholder 410 Citizens and stakeholder 445 Citizens and stakeholder activities: activities: activities:

■■ Special awareness programmes ■■ Special awareness programmes ■■ Special awareness programmes (youth, women, people with (youth, women, people with ■■ (youth, women, people with disability and the elderly); disability and the elderly); disability and the elderly); ■■ General consumer workshops; ■■ General consumer workshops; ■■ General consumer workshops; ■■ Consumer education programmes ■■ Consumer education programmes ■■ Consumer education programmes for big businesses in partnership for big businesses in partnership for big businesses in partnership with the Consumer Goods with the Consumer Goods with the Consumer Goods Council; Council; Council; ■■ Train-the-trainer sessions; ■■ Train-the-trainer sessions; ■■ Train-the-trainer sessions; ■■ Financial literacy workshops; and ■■ Financial literacy workshops; and ■■ Financial literacy workshops; and ■■ Social media (e.g. Twitter and ■■ Social media (e.g. Twitter and ■■ Social media (e.g. Twitter and Facebook) engagement. Facebook) engagement. Facebook) engagement.

Citizens and stakeholder activities: Citizens and stakeholder activities: Citizens and stakeholder activities:

■■ 230 liquor awareness activities ■■ 220 liquor awareness activities ■■ 222 liquor awareness activities which include (youth, women, which include (youth, women, which include (youth, women, people with disabilities and the people with disabilities and the people with disabilities and the elderly); elderly); elderly); ■■ Four (4) social responsibility ■■ Four (4) social responsibility ■■ Four (4) social responsibility programmes; and programmes; and programmes; and ■■ 9 968 liquor compliance activities ■■ 11 065 liquor compliance ■■ 8 415 Liquor compliance conducted. activities to be conducted. activities conducted.

There is a greater use of indigenous N/A Frontline officials are multilingual languages in the Department and and were trained on sign language, citizens were assisted in a language thus citizens got assistance in the of their choice: language of their choice:

■■ English; ■■ Sign language ■■ IsiZulu; ■■ English; ■■ IsiNdebele; ■■ IsiZulu; ■■ IsiXhosa; ■■ IsiNdebele; ■■ Xitsonga; ■■ IsiXhosa; ■■ Setswana; ■■ Xitsonga; ■■ Tshivenda; ■■ Setswana; ■■ Sesotho; and ■■ Tshivenda; ■■ Afrikaans. ■■ Sesotho; and ■■ Afrikaans.

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SERVICE DELIVERY INFORMATION TOOL Current/actual information tools Desired information tools Actual achievements Citizens could access services at N/A Citizens could access services at the head office and there are four the head office and there are four regional offices to minimise the regional offices to minimise the distance travelled by citizens to distance travelled by citizens to access services: access services:

■■ Head Office ■■ Head Office ■■ West Rand ■■ West Rand ■■ Sedibeng ■■ Sedibeng ■■ Ekurhuleni ■■ Ekurhuleni ■■ Tshwane ■■ Tshwane ■■ Soweto (Consumer Affairs only) ■■ Soweto (Consumer Affairs only) ■■ Five (5) GDED group mobile ■■ Five (5) GDED group mobile offices (buses) that were utilised offices (buses) that wre utilised for key outreach programs. for key outreach programs.

COMPLAINTS MECHANISM Current/actual complaints Desired complaints mechanism Actual achievements mechanism The Department has established To ensure redress of Batho Pele Number of Batho Pele Principles the Service Delivery Committee Principles (service delivery) (service delivery) violations received: that ensures redress in case of the violations. violation of the Batho Pele Principles: ■■ 295 complaints received; ■■ 157 complaints resolved; ■ The effective utilisation of the ■ ■■ 118 queries pending; and complaints, complements and ■■ 20 Partially resolved. suggestion boxes and the Premier Hotline by citizens. Pending queries are as a result of:

■■ Incomplete information; ■■ Objections underway; ■■ Petition underway; ■■ Dispute between GLB and complainant; and ■■ Outstanding investigation report.

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2.3. ORGANISATIONAL ENVIRONMENT Current Organisational Perspective The Departmental Functional and Organisational structure was endorsed by the Minister of Public Service and Adminis- tration (MPSA) in November 2012, and it was implemented by GDED in August 2013.

Developments Affecting Current Organisational Perspectives An analysis with regard to the re-configuration of Sector and Industry Development along the provisions of the GCR Economic Development Plan and the GGT2030 has been conducted with the purpose of ensuring that the Department effectively and efficiently implements the GCR Economic Development Plan, GGT2030 and Sector Strategies. Consultations on the proposed structure were made with relevant Senior Managers following the Strategic Planning Session that was held in October 2019. In March 2020, the proposed structure was aligned to the GGT2030 as per the Premier’s SOPA pronouncement. However, the proposed structure could not be presented to the Senior Management Team and Executive Management Team for endorsement due to the national lockdown as a results of the COVID 19 pandemic.

The Department did not experience any serious failure of any of the systems, either transversal or business systems that affected the daily operations. The Information Communication and Technology which includes the networks, servers, switches and other accessories has been stable and performed at optima level. The business systems have not experienced abnormal downtime and have been available at an acceptable of 95% at all times.

2.4. KEY POLICY DEVELOPMENTS AND LEGISLATIVE CHANGES The declaration by the President on National Disaster and the subsequent regulations introduced in terms of the Disaster Management Act necessitated changes to some of the Department’s internal policies.

A Nellmapius township community member commenting during the public hearings for the Tshwane SEZ.

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3. STRATEGIC OUTCOME ORIENTED GOALS

Strategic Outcome Orientated Goal 1 Gauteng’s economy radically transformed Goal Statement This goal is intended to move away from the current monopoly dominated economy to an inclusive and job creating economy that:

■■ Harnesses indigenous resources, skills and capacity as part the mainstream economy ■■ Develops new, smart, green knowledge-based economy and industries ■■ Addresses the legacy of apartheid’s skewed spatial economic development planning through revitalising and modernising township economies ■■ Addressed the dominance of monopoly capital that perpetuates high levels of poverty, unemployment and inequity ■■ Brings SMME’s, township enterprises and cooperatives into the eleven (11) identified key economic sectors at all levels of their value chain ■■ Guarantees energy security through appropriate and sustainable energy mixes, application of green technologies and processes and radical transformation of the economic sector ■■ Regulates the Liquor Industry and facilitates its contribution to job creation and an inclusive economy ■■ Regulates the Gambling Industry and facilitates its contribution to job creation and an inclusive economy ■■ Promotes and protects the rights of consumers.

Strategic Outcome Orientated Goal 2 Gauteng’s economy re-industrialised Goal Statement This goal is intended to address the policy imperatives of creating decent employment, ensuring greater inclusion in the mainstream economy and enhancing competitiveness and growth through:

■■ Supporting the province’s eleven (11) identified economic growth sectors (Finance, Automotive Industry, Manufacturing, ICT, Tourism, Pharmaceuticals, Creative Industries, Construction, Real Estate, Mineral Beneficiation and Agro-processing) ■■ Strategic economic infrastructure development (R300 billion in post, freight, rail and pipeline capacity) ■■ Revitalising and modernising old industries with the massive roll out of transport infrastructure ■■ The procurement of 75% of government goods and services from South African Producers ■■ Supporting local manufacturing e.g. of steel ■■ Increasing domestic and export demand for South African manufactured goods ■■ Promoting beneficiation activities ■■ Supporting high growth, competitive and labour absorbing sectors ■■ Attracting Domestic Direct Investment (DDI) and Foreign Direct Investment (FDI) ■■ Increasing trade and export opportunities on the African continent and globally.

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3. STRATEGIC OUTCOME ORIENTED GOALS

Strategic Outcome Orientated Goal 3 GDED capacitated to deliver and implement efficiently and effectively Goal Statement This goal is intended to ensure that the GDED is able to deliver and implement its core-function programmes and projects through the provision of supportive services in the areas of: ■■ Financial management; ■■ Human resource management; ■■ Centralised planning, co-ordination and management; ■■ Business intelligence to drive the work of the GDED; ■■ Auxiliary and Legal Services; ■■ Communication, Marketing and Branding ■■ Information and Communication Technology; and ■■ Agency Oversight and Governance.

Mohlakeng enumarators (with their GDED supervisor on the foreground) who participated in the Mohlakeng Baseline Study receiving their certificates of recognition.

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4. PERFORMANCE INFORMATION BY PROGRAMME 4.1. PROGRAMME 1: ADMINISTRATION 4.1.1 Financial Management During the year under review, Programme 1 was allocated a final adjusted appropriated budget of R303 million and managed to spend an amount of R243,7 million which equates to 80% spent for the year. The underspent amount of R59 million translates to 20% underspending. The underspent amount is made-up of accruals for invoices received but not processed for payment amounting to R4,6 million; R420k relates to payables for services received but not yet invoiced; R39,9 million commitments for which purchase orders have been issued (including a purchase order for R5,2 million for the procurement of computer equipment); and R6 million is under-compensation of employees due to vacant posts which remained unfilled by the end of the financial year and the outstanding 2018/19 senior management performance bonus and notch payment-outs.

Premier Makhura (with shovel), and President Ramaphosa (3rd from right) with senior officials from Ford Motor Company South Africa, National, Provincial, and Local government at the sod turning for the Tshwane SEZ.

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TABLE 1.1 PROVINCIAL TARGETS FOR 2019/2020 ANNUAL PERFORMANCE PLAN FOR FINANCIAL MANAGEMENT

Programme: Administration

Sub-programme: Financial Management

Strategic objectives Performance Indicator Actual Achieve- Actual Achieve- Actual Achieve- Planned Target Actual Achieve- Deviation from Comment on ment 2016/2017 ment 2017/2018 ment 2018/2019 ment planned target to deviations 2019/2020 Actual Achieve- 2019/2020 ment 2019/2020

Capacitated GDED financially Number of in-year- 12 12 12 12 12 None None to meet its objectives, fulfil monitoring reports produced its mission and improve

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT service delivery Number of interim Annual 4 4 4 4 4 None None Financial Statement reports compiled

Strategy to Overcome Areas of Underperformance There were no areas of underperformance reported under financial management sub-programme.

Changes to Planned Targets There were no changes to the planned targets during 2019/20 financial year.

Linking performance with budgets The financial management’s overall performance expenditure for the year amounts to R46 million against the budget of R58.9 million resulting in an underspending of R12,9 million. The actual spent resulted in the programme achieving all its planned indicators. ANNUAL REPORT Sub-programme Expenditure

Sub- Programme Name 2019/2020 2018/2019

Final Actual (Over)/Under Final Actual (Over)/Under Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Financial Management 58 996 46 090 12 906 42 540 42 110 430 32 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PERFORMANCE INFORMATION PARTPART BA

4.2. PROGRAMME 2: INTEGRATED ECONOMIC to entrepreneurial development within the Province is in DEVELOPMENT SERVICES tandem with the Gauteng Entrepreneurship Model (GEM) which advocates for the integration and coordination of The purpose of this programme is to ensure radical all small enterprise support interventions in the Gauteng economic transformation that addresses the triple policy Province. In line with the GEP Act, GEM promotes the imperatives of decent work, an inclusive economy and integration and coordination of developmental efforts equality. by government departments, Development Finance Institutions (DFIs) and other entrepreneurship support The implementation of projects within this programme re- providers across the province. sides with the public entities reporting to the Department. The public entities were established as implementing arms Through GEM’s advocacy for an integrated approach to of the Department and funds dedicated to the completion small business development in the Gauteng Province, GEP of projects under this programme are transferred to these intends to mobilise partners and resources and by so doing entities. Specific targets are set in the individual Annual increase developmental impact within the entrepreneurship Performance Plans for each public entity and are report- space. The model seeks to address challenges faced by ed separately in their Annual Reports. The following pub- SMMEs and co-operatives that are highly informal through lic entities provide economic services to communities and the provision of compliance support, such as accreditation, other stakeholders within Programme 2: product refinement, development of business plans and creation of an environment for increased participation in the mainstream economy. This is done through linking 4.2.1. Gauteng Enterprise Propeller small businesses with offtake agreement and strategic The Gauteng Enterprise Propeller, is a Schedule 3C procurement opportunities in the province. The model Provincial Entity established under the auspices of the also proposes for a single window of application for the Gauteng Department of Economic Development to ensure DFIs and it will serve as a developmental clearing house the development of “Sustainable SMMEs and co-operatives while also focusing on high-impact interventions that will propelled into the mainstream of the Gauteng economy”. promote the sustainability and job creation potential of This vision has driven GEP’s continued commitment to supported enterprises. propelling SMMEs and co-operatives from the periphery into mainstream economy, thus enhancing the role of Small enterprise support interventions pursued by small township enterprises in developing the key sectors the entity in the 2019/20 financial year were centred of Gauteng’s formal economy. around the provincial Township Economy Revitalisation (TER) Strategy which seeks to move small enterprises The objectives of GEP as derived from the GEP Act, No. 5 of from marginal to the mainstream economy and increase 2005 are to: their economic participation. Key priorities during the period under review included programmes to promote ■■ Promote, foster and develop small enterprises in entrepreneurship, leveraging on strategic partnerships to Gauteng; provide skills development, mentorship and incubation opportunities for entrepreneurs and targeted support ■ Implement the policy of the Gauteng Provincial ■ aimed at addressing the persistent challenge of youth Government for small enterprise development; unemployment through the Youth Accelerator Programme. ■■ Design and implement small enterprise development support programs within Gauteng; GEP has continued to make a crucial contribution to ■■ Establish and promote a support network to improve the revitalisation of the township economy in support the contribution of small enterprises to the Gauteng of the TER strategy, and product offerings such as the Township Business Renewal (TBR) Programme, the start- economy; up Community Fund (CF) and the Co-operative Assistance ■■ Promote economic growth, job creation and equity; Programme (CAP) which provide business development ■■ Integrate all government funded small enterprise and investment-readiness support to township SMMEs and support agencies in Gauteng Co- operatives have benefited over 3 000 small businesses ■■ Strengthen the capacity of service providers to assist in the 2019/20 financial period. small enterprises; and The entity provided non-financial support to nearly ■ Strengthen the capacity of small enterprises to ■ 2 058 SMMEs against an annual targeted of 2 000 for compete successfully domestically and internationally. the year, comprising of skills development, marketing tools, equipment and the formalisation of small township The GEP mandate of promoting entrepreneurship, businesses. Continued efforts to formalise township-based mobilising resources and facilitating an integrated approach informal businesses resulted in support being provided

ANNUAL REPORT ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 32 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 33 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART B PERFORMANCE INFORMATION

to a targeted 1 000 informal businesses, with steps also greater effect to the Transformation, Modernisation and having been taken to formalise them and improve their Re-industrialisation (TMR) strategy by placing emerging investment readiness. black industrial enterprises at the forefront of the entity’s programmes, will be key in elevating the entity to a Gauteng’s manufacturing sector has been declining over provincial DFI capable of playing a resource-coordination the past years, hence the entity’s continued focus on the and re-industrialising role for transforming the Gauteng’s provision of targeted support to black and township-based economy. enterprises in this sector, to enhance their productive capacity and ensure the realisation of economies of GEP would thus be central to promoting the sustainability, scale. GEP supported about 74 small-scale township growth and competitiveness of small enterprises as manufacturers during the year to produce goods for local meaningful contributors to the overarching impact of the consumers. Given the shaky performance of this sector and Gauteng Department of Economic Development, which increasing economic uncertainty brought by COVID-19, is, “An inclusive and sustainable economic growth that support provided to manufacturers will be up-scaled in the stimulates jobs within the Gauteng City Region”. 2020/21 financial year. 4.4.2 Gauteng Growth and Development Agency About 200 small enterprises in the West Rand and Sedibeng The Gauteng Growth and Development Agency (GGDA) Regions were supported through business development was established by the Gauteng Growth and Development support interventions, while targeted support to co- Agency Act, 2012 and is responsible for business operatives benefited more than 160 Co-operatives which enablement, capital projects, trade and investment were provided grants and business development support promotion, enhancement of economic competitiveness. interventions. The agency is also tasked with the creation of an enabling environment for business growth. The functions of the The entity’s 2019/20 priorities have included purposeful GGDA include: steps likely to yield the desired impact when it comes to improving the plight of unemployed citizens; particularly ■■ Promoting Gauteng’s target sectors locally and the youth. Through its Youth Accelerator Programme, GEP provided job placement opportunities to about 240 internationally; unemployed young people across the Gauteng City Region ■■ Attracting Domestic Direct Investment and Foreign in support of the Provincial Tshepo 1 Million programme, Direct Investment; with work having been continuing towards securing ■■ Creation of an environment that is more conducive placements for a targeted additional 210 youth at the onset for doing business for multi-nationals, large local of the COVID-19 pandemic as at the end of the 2019/20 companies and SMMEs; financial year. Through the GEP’s Pitching Booster ideation programme, about 320 SMMEs also benefited from ■■ Enabling of economic development that is focused on financial, business development and mentorship support creating sustainable jobs; which capacitated them to gain access to opportunities in ■■ Identifying and increasing trade, investment and the mainstream economy. export opportunities on the African continent and globally; As pronounced by the Premier during the 2019 State ■■ Strategically positioning the province as a globally of the Province Address, the overarching policy context of the Gauteng Provincial Government (GPG) started in competitive city region; and the previous term will continue and will underpin the ■■ Working with other spheres of government and the 6th Administration plan of action under the theme of private sector to facilitate partnerships and create “Growing Gauteng Together Plan – our Roadmap to 2030 linkages, across the province in order to develop – GGT2030”. In this regard, GEP has a critical contribution transformative infrastructure aimed at changing the to make towards building “a Gauteng City Region that is way in which the Gauteng City Region operates. seamlessly integrated, economically inclusive, socially cohesive, smart, environmentally sustainable, innovation- The Gauteng InvestSA is mandated to ease regulatory bot- driven and globally competitive”. tlenecks that delay or impede successful implementation of business activities. It is strategically positioned to pro- As a priority of GGT2030, the 6th Administration advocates vide investment and export facilitation through partner- for the acceleration of economic growth, deepening ships with provincial government departments, local gov- integration for small enterprise support interventions ernment, national departments, state-owned agencies and and scaling up the productivity of these enterprises with the private sector. the aim of resuscitating the ailing economy. The planned reconfiguration and recapitalisation of GEP to give

ANNUAL REPORT 34 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PERFORMANCE INFORMATION PARTPART BA

4.2.2.1 Automotive Industry Development Centre private partnerships and direct development investment. (AIDC) The intention is for the Gauteng IDZ to drive focused The Automotive Industry Development Centre (AIDC) is a manufacturing and beneficiation programmes whilst support centre, whose responsibility is to increase the lo- helping to position Gauteng as a global city region. Key cal automotive industry’s global competitiveness and to to delivering this mandate is that these programmes promote Gauteng as the automotive industry investment will use international best practices and will increase destination of choice. industrialisation and manufacturing capability in Gauteng. The Gauteng IDZ will support the GGDA in its aim that The AIDC has developed into a world-class organisation, key Provincial Strategies are supported in a manner that which specialises in skills development and training, enter- ensures success of those strategies. prise development, incubation programmes, management of incentive programmes and offers state-of-the-art manu- The Gauteng IDZ is further required to investigate and facturing support facilities. identify additional projects that must form part of the Gauteng IDZ programme, in lieu of the limited space The AIDC also offers state-of-the art automotive manufac- available for development at OR Tambo IDZ, and the policy turing support facilities at its two incubation centres (Ross- decision communicated by the Department of Trade and lyn and Silverton) and repair facilities at Chamdor and Win- Industry (as custodian of the SEZ programme in the country) terveldt. The AIDC also manages the Automotive Supplier for the Gauteng IDZ to explore other projects that would be Park (ASP), an automotive hub based in Rosslyn, housing considered as part of the GIDZ overall programme. various automotive component manufacturers, suppliers and service providers to Original Equipment Manufacturers 4.2.2.4 Constitution Hill (ConHill) (OEMs). Constitution Hill is a heritage site and a living museum that tells the story of South Africa’s journey to democracy. 4.2.2.2 The Innovation Hub (TIH) The site is a former prison and military fort that bears The Innovation Hub is established to promote economic testament to South Africa’s turbulent past and today development and competitiveness of Gauteng, through it is home to the country’s Constitutional Court, which fostering innovation and entrepreneurship. The Innovation endorses the rights of all citizens. This iconic site, situated Hub’s role in the provincial innovation ecosystem is to be in the Johannesburg CBD, includes the Old Fort Prison a catalyst for innovation and a key knowledge economy Complex where South Africa’s leading political activists, driver. The priority sectors for The Innovation Hub are Smart such as Nelson Mandela and Fatima Meer were detained. industries, Bio economy and Green economy (renewable The multi-million-rand regeneration development project energies and low carbon economy technologies). is funded by GGDA, the Gauteng Provincial Government, and the City of Johannesburg, the Department of Justice The TIH offers several incubations programmes in the Bio and Constitutional Development and philanthropic economy (agro-processing and pharmaceuticas) Smart organisations. industries (ICT and advanced manufacturing) and green economy (water purification, waste management and 4.3. PROGRAMME 3: TRADE AND SECTOR renewable energy). In addition, the TIH operates a range DEVELOPMENT of enterprise development, skills development and To ensure reindustrialisation that addresses the triple pol- innovation enabling programmes both the science part and icy imperatives of decent work, an inclusive economy and throughout Gauteng Region. equality.

4.2.2.3 Gauteng Industrial Development Zone (GIDZ) The implementation of projects within this section resides The Gauteng Industrial Development Zone (GIDZ) was es- with the public entities reporting to the Department. The tablished to enhance the beneficiation of minerals mined public entities were established as an implementing arm of in South Africa, through the development and operations the Department and funds are transferred directly to them. of an Industrial Development Zone designated at OR Tam- Specific targets are set in individual Annual Performance bo International Airport. In this regard, Gauteng IDZ is re- Plans for each public entity and are reported separately in quired to develop and operate the OR Tambo IDZ, through their Annual Reports. the design, project management, development and opera- tionalisation of the OR Tambo IDZ, which has an Agri-pro- The following public entities provide economic services to cessing plant in the Northern Precinct and a Jewellery Man- communities and other stakeholders within Programme 3. ufacturing precinct in the southern part. 4.3.1 Cradle of Humankind World Heritage Site The mandate of the Gauteng IDZ is to create an enabling (COHWHS) and Dinokeng Projects platform for investment opportunities through public/ The Cradle of Humankind World Heritage Site (COHWHS)

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 35 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART B PERFORMANCE INFORMATION

and Dinokeng Projects are geo-spatial development markets, increase in the number of domestic trips and en- initiatives of the Gauteng Provincial Government (GPG) hanced visitor experience with township tourism products aimed at developing premier tourist destinations in the and community beneficiation. economically depressed regions in the north eastern and north western portions of the Gauteng province. 4.4. PROGRAMME 4: BUSINESS REGULATION AND The COHWHS and Dinokeng are established as trading GOVERNANCE entities within the Gauteng Department of Economic Development (GDED) with a single Accounting Officer, the This programme’s objective is to protect and promote CEO appointed in terms of section 36 (3)(b) of the Public the rights of consumers and facilitate ethical business Finance Management Act (PFMA), Act 1 of 1999. The CEO practices in relation to customer services, while regulating reports to the Member of Executive Committee (MEC) of the liquor and gambling industries and maximising the the GDED. The mandate of the COHWHS and Dinokeng benefits from these industries that can accrue to broader trading entities is derived from the Blue IQ Investment socio-economic development in the province. These Holdings (Proprietary) Limited Act, Act of 2003, and the initiatives have the cumulative effect of supporting and World Heritage Convention Act (WHCA), Act 49 of 1999. promoting alignment of the work of GDED’s agencies to that of the Department and ensuring the accountability of With regard to the management of the COHWHS, the MEC the agencies to the GDED. Within the banner of business for Gauteng Economic Development, Agriculture and En- regulation and governance is a sub program on IGR and vironment (GDEDAE) Ms Winifred Morakane Mosupyoe, is strategic partnerships. It’s purpose is to forge strategic appointed by the Minister of Environmental Affairs as the partnerships locally and globally to ensure effective Management Authority (MA) in terms of section 8 of the implementation of sustainable special projects. WHCA on 8 December 2017. In partnership with CCBSA the unit facilitated the “Grow my 4.3.2 Gauteng Tourism Authority business” programme which offers financial and business training NQF level 2 to township-based Spaza shop owners Gauteng Tourism Authority (GTA) was established as an and hawkers. In total, 1 281 Spaza owners and hawkers Authority on the 1st of April 2000 in terms of the Gauteng were trained through the Grow My Business Programme. Tourism Authority Act of 1999 and succeeded the Gauteng Grow my business project can be quantified to the value Tourism Agency a section 21 Company as a going concern. of R1.6 million. The Young Entrepreneurs Program faced The establishment of GTA was to develop and promote, co- numerous challenges in Ekurhuleni, Merafong and Mogale ordinate and facilitate responsible and sustainable tourism City. In the process, some entrepreneurs fell on the way in Gauteng, to create a world class destination that attracts side. But through other means two pilot establishments business visitors and all other tourist to the province, while have started. In Merafong there were also minor glitches creating employment as it contributes to economic growth. with the community issues but the work has already started. In Mogale City, we are still awaiting the city to allocate sites The GTA is the official destination marketing organisation for young people. YEP has the potential to empower young for the Gauteng City Region. Its objective is to promote people and create jobs. and position Gauteng, as the preferred business and leisure (bleisure) destination in Africa through targeted As part of our mandate to engage the corporates and international and domestic destination marketing efforts, any other entity which can play a crucial role in the the bidding and hosting of major global, regional and upliftment of the township based SMMEs, the Department local events, provision of quality visitor experience and held numerous engagements. The unit organised more development of new sustainable and responsible tourism than 6 breakfast sessions with captains of Industry and products and experiences. This work is executed through roundtable engagements with the Regulatory bodies, the implementation of the Gauteng Tourism Sector Development Financial Institutions and Corporates in Strategy (GTSS) with special emphasis on destination Transport and Logistics, ICT and Manufacturing. As its core coordination, effective destination marketing and market mandate the unit signed 6 MoUs with SovTech (ICT), Digify competitiveness and diversification. (ICT skills development linked to SMMEs and social media marketing), Davah (artisans’ skills development and access GTA’s destination marketing work is guided by the pro- to market platform), Semodisa (SMME policy lobby group), vincial government’s Transformation, Modernisation and PPC (Logistics and Skills development), Business Doctors Re-industrialisation (TMR) agenda with focus on two pillars, (Market Readiness). The unit signed 5 project charters as playing a leading role in Africa’s new industrial revolution well. and the radical socio-economic transformation. Lastly, the unit hosted the SMMEs Summit in partnership Overall tourism growth in Gauteng is measured through with UNDP which was the anchor sponsor, PPC Cement as increase in the number of international arrivals particu- the co-sponsor and Business Doctors as well. The purpose larly from our traditional core, investment and watch list

ANNUAL REPORT 36 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PERFORMANCE INFORMATION PARTPART BA

of the summit was to create a platform for interaction Various activities took place in partnership with different between big corporates and the SMMEs and to give the stakeholders. township based SMMEs access to market. This summit attracted 256 SMMEs which were selected using the value The main consumer education campaigns included World creator system owned by the Business Doctors. The purpose Consumer Rights Month (WCRM), Month of the Aged and of using this system was to make sure that we understand People Living with Disability, Women’s Month and Business the level at which these SMMEs are, their capacity and Seminars. In addition, the Department participated in a above all their readiness for market. Corporates played a Soul Buddyz – annual savings campaign held in July and pivotal role at this summit as they shared with the SMMEs, the Consumer Education for Young Entrepreneurs (the opportunities in their value chain and the criteria to accede EMS Olympiads for grades 7, 8 and 9). Furthermore, the to these opportunities. About 58 corporates honoured our Department has also conducted consumer education invitation and attended the summit. We also had good media campaigns with various television and radio stations support from the Treasury (Gauteng), Gauteng Department on issues involving consumers. of Infrastructure Development, Gauteng Department of Housing and the GDED agencies. A total of 785 consumer complaints were resolved in the year under review (2019/20), of which 676 were resolved 4.4.1 Consumer Affairs within 60 working days ,which equates to 86%. A set target The objective of the Consumer Affairs unit is to provide an of 90% was not met mainly because of the complaints that enabling environment for consumer satisfaction in order to were still pending due to further investigations and the stimulate the growth of businesses and the economy. This delay of responses from the suppliers. The Department will mandate is derived from the Gauteng Consumer Affairs continue to follow up on unresolved complaints. According (Unfair Business Practices) Act 7 of 1996 and the Consumer to the trend analysis, the complaints most received by Protection Act 68 of 2008. the office involved motor vehicles, retails and residential properties. The function of Consumer Affairs is to ensure awareness of consumer rights through education and awareness The Department conducted 145 compliance monitoring programmes; consumer education media campaigns (radio inspections against a target of 144. The purpose of the and television programmes) ensure consumer protection inspections was to check the level of compliance with and compliance of business with applicable consumer the Consumer Protection Act by small and medium protection legislation and provide secretarial support to retail suppliers in the province and also ensuring that the Consumer Affairs Court. the consumer rights are observed and respected by the suppliers. During the year under review, a total of 445 outreach activities were conducted exceeding the target of 410.

Consumer rights activists during the celebrating the World Consumer Rights Day in the Johannesburg CBD.

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 37 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART B PERFORMANCE INFORMATION

TABLE 1.1 PROVINCIAL TARGETS FOR 2019/2020 ANNUAL PERFORMANCE PLAN FOR CONSUMER AFFAIRS

Programme: Business Regulations and Governance

Sub-programme: Consumer Affairs

Strategic objectives Performance Indicator Actual Achieve- Actual Achieve- Actual Achieve- Planned Target Actual Achieve- Deviation from Comment on deviations ment 2016/2017 ment 2017/2018 ment 2018/2019 ment planned target to 2019/2020 Actual Achieve- 2019/2020 ment 2019/2020

Provide an enabling en- Number of consumer 469 420 441 410 445 35 The over achievement vironment for consumer education programmes was due to the in- satisfaction to stimulate conducted creased invitations from

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT growth of businesses stakeholders and addi- tional mall activities. Percentage of consumer # # 86% 90% 86% (4%) The underperformance complaints resolved was attributable to within 60 working days complaints that are still pending due to further investigations and delay of responses from the suppliers. The Depart- ment will continue to follow up on unresolved queries. Number of compliance # # # 144 145 1 The overachievement

ANNUAL REPORT monitoring inspection was motivated by the conducted need for retailers to be made aware of the Con- sumer Protection Act. # New indicators that were not in the previous financial years

Strategy to Overcome Areas of Underperformance The Department will continue to follow up on unresolved complaints for the indicator on “percentage of consumer complaints resolved within 60 working days”.

Changes to Planned Targets The indicator “number of proactive investigations conducted” was rephrased to “number of compliance monitoring inspections conducted”. The indicator was re-phrased 38 to measure what is being reported. Previously the indicator referred to the second part of the process which is investigations after conducting compliance monitoring to detect areas of non- compliance.

■■ The indicator “number of consumer education media campaigns initiated” was removed from the APP as the unit concluded that indicator is process and output driven. TABLE 1.1 PROVINCIAL TARGETS FOR 2019/2020 ANNUAL PERFORMANCE PLAN FOR CONSUMER AFFAIRS

Programme: Business Regulations and Governance

Sub-programme: Consumer Affairs

Strategic objectives Performance Indicator Actual Achieve- Actual Achieve- Actual Achieve- Planned Target Actual Achieve- Deviation from Comment on deviations ment 2016/2017 ment 2017/2018 ment 2018/2019 ment planned target to 2019/2020 Actual Achieve- 2019/2020 ment 2019/2020

Provide an enabling en- Number of consumer 469 420 441 410 445 35 The over achievement vironment for consumer education programmes was due to the in- satisfaction to stimulate conducted creased invitations from

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT growth of businesses stakeholders and addi- tional mall activities. Percentage of consumer # # 86% 90% 86% (4%) The underperformance complaints resolved was attributable to within 60 working days complaints that are still pending due to further investigations and delay of responses from the suppliers. The Depart- ment will continue to follow up on unresolved queries. Number of compliance # # # 144 145 1 The overachievement

ANNUAL REPORT monitoring inspection was motivated by the conducted need for retailers to be made aware of the Con- sumer Protection Act. # New indicators that were not in the previous financial years

Strategy to Overcome Areas of Underperformance The Department will continue to follow up on unresolved complaints for the indicator on “percentage of consumer complaints resolved within 60 working days”.

Changes to Planned Targets The indicator “number of proactive investigations conducted” was rephrased to “number of compliance monitoring inspections conducted”. The indicator was re-phrased 38 to measure what is being reported. Previously the indicator referred to the second part of the process which is investigations after conducting compliance monitoring to detect areas of non- compliance.

■■ The indicator “number of consumer education media campaigns initiated” was removed from the APP as the unit concluded that indicator is process and output driven.

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART B PERFORMANCE INFORMATION

Linking performance with budgets The consumer affairs overall performance expenditure for the year amounted to R24 million against the budget of R24,5 million resulting in an underspend by R584k. The actual spent resulted in the programme achieving two (2) targets from the total of three (3) planned targets in the year under review.

Sub-programme Expenditure Sub- Programme Name 2019/2020 2018/2019

Final Actual (Over)/Under Final Actual (Over)/Under Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Consumer Affairs 24 594 24 010 584 24 549 22 192 2 357 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT TOTAL 24 594 24 010 584 24 549 22 192 2 357 ANNUAL REPORT 39 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART B PERFORMANCE INFORMATION

4.4. 2 Gauteng Liquor Board (GLB) The total number of liquor awareness activities conducted The purpose of the sub-programme is to regulate the was 222 against an annual planned target of 220. This is liquor industry; ensure ethical business practice and attributed to partnerships established with liquor traders empower stakeholders; promote and maintain an effective associations and industry stakeholders who partnered and efficient regulatory system for the liquor industry; with the Department in the roll-out of liquor awareness maximise the benefits derived from the liquor industry activities. Liquor awareness activities had different themes and minimise their potential negative impact; generate and focus areas, including: underage drinking workshops revenue from the industry and create awareness on the targeting youth; responsible drinking workshops; liquor harm caused by alcohol abuse; and promote responsible traders workhops; workshops with SAPS liquor officers; trade and maintain a regulated liquor industry as envisaged training workshops for the newly licenced liquor traders; by the Gauteng Liquor Act No.2 of 2003. exhibitions / information sessions on services offered by the GLB; and road shows in partnership with the NGO The Gauteng Liquor Board (GLB) is tasked with the sectors. While the list is not exhaustive, these afore- responsibility of regulating the liquor industry and to mentioned were some of the activities that were activated ensure that the liqour trade is conducted in a regulated across the five regions of Gauteng to educate and create environment. The regulator has additional responsibility awareness on responsible trading and the negative effects of creating awareness on the negative effects of alcohol of alcohol. to the different population groups in society. The major focus areas for the entity is compliance and enforcement. The annual target for the number of social responsibility This function continues to be central to the role of the GLB programmes conducted was achieved as planned. The as a regulator. Licence holders are expected to adhere achievemet of the target was attributed to established to the conditions attached to their licences and new partnerships with industry and NGO sectors that are active entrants to the liquor industry need to comply with the in the liquor industry. The social responsibility indicator set requirements for the different licence categories. The and programs seek to further empower the various sectors compliance and enforcement role is critical to the entity as within the industry on matters ranging from fighting against its regulatory function hinges upon the ability to enforce alcohol abuse, transfomation and bussiness opportunities compliance with the various legislative frameworks and in the industry, social and economic issues, responsible instruments designed to regulate the liquor environment. drinking, and social decay as result of excessive alcohol consumption. The themes that were supported through the Furthermore, as part of regulation, GLB receives and women’s event workshop included the men’s conference, adjudicates on applications for various licence categories, a youth seminar and the substance abuse event. The supports social responsibility programs aimed at programs are intended to empower industry stakeholders empowering different sectors across Gauteng communities. and to expand the footprint of the regulator beyond the In addition, education and awareness plays a pivotal role liquor industry to the general public. in conscientising the liquor traders and stakeholders on responsible trade, as well as in informing the public about Revenue collection and revenue management strategies responsible liquor consumption and the dangers of alcohol remain central to the entity and the move towards being self- abuse. Incidents of social ills and harms caused by alcohol sustainable. The entity collected a total of R71 million from abuse have been a growing phenomenon that has posed regulatory processes, which exceeded the planned annual a challenge to the social cluster departments. Therefore, target. This is attributed to compliance by the industry in a more collaborative approach is needed to successfully terms of the payment of renewal fees, compliance and fight the scourge of alcohol abuse. monitoring interventions, new industry entrants following the due applications processes, as well as a portion from In the year under review, the annual target for the penalties levied for non-compliance with the Liquor Act. compliance blitz was achieved as planned. This is attributed The simplified renewal process and continuous data-base to the partnership established with the Law-Enforcement cleansing exercise has enhanced the entity’s revenue Agencies (SAPS), as well as metropolitan and local collection ability and will contribute towards the entity’s municipal police and inspectors. Joint operations were effort towards becoming self-sustainable. conducted in collaboration between SAPS, metro police departments and the Gauteng Liquor Board’s inspectorate Gauteng Liquor Board initiated the Physical Verification unit on a quarterly basis and in response to thematic Project during the 2017/18 financial year for a three-year operations targeting non-compliance in the liquor industry. rolling period. The objective of the project was to verify all The continuous collaboration with other law enforcement liquor outlets within the Gauteng Province. The outcomes agencies has contributed visible enforcement and areas/ of the project will be used as a baseline and a point of precincts deemed to be hotspots are constantly monitored reference. The information is critical in decision-making for compliance with licence conditions enforced. relating to compliance and enforcement by the different law and enforcement agencies. The project was completed on

ANNUAL REPORT 40 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PERFORMANCE INFORMATION PARTPART BA

the 31st of March 2020 as planned. Furthermore, a meeting and recommended non-governmental organisations was scheduled to discuss the handover of the project. This, (NGOs) that focus on reducing the harm caused by alcohol however, has been postponed due to the outbreak of the abuse in society. The process of selecting beneficiaries Covid-19 pandemic. was finalised in the third quarter of the year under review. Five (5) beneficiaries from the distressed regions were The migration to an automated liquor system environment put through the selection process and recommended for has been stalled by technical glitches in the automated the 2019/2020 CSI program. The transfer of funds to the liquor system. The automated system was launched on implementing entity, the Gauteng Enterprise Propeller, the 1st of April 2019. However, the system has never been (GEP) is pending approval. fully operational. The benefits and opportunities that come with an automated system environment are yet to be fully Regulation of the Liquor Industry remains GLB’s core exploited. The entity is in the process of appointing a new mandate. The entity will continue to focus on its regulatory service provider to bring the system to its optimal use and function as the regulator of the industry to maintain a enable the GLB to gradually migrate the manual application regulated liquor environment. The finalisation of the process to an automated platform. Modernisation of systems shebeen permit issue remains the entity’s focus area and services rendered by government is ineveitable in the as it presents an opportunity for revenue collection face of the fourth industrial revolution (4IR). Hence the and an opportunity to fully regulate the industry automation project will be the entity’s game changer when using a standardised legal framework. In addition, the it is fully functional. It will also enhance and lower the cost Gauteng Liquor Board will seek to ensure compliance of doing business for the liquor industry and the township and enforcement through its compliance activities and economy. education awareness to reduce the harm caused by alcohol abuse. Collaborative efforts by the industry and various Rand value spent on the corporate social investment liquor stakeholders will contribute towards the realisation (CSI) programmes entails distribution of 1% of revenue of a regulated environment. collected at the time of implementation to the identified

Linda’s Market and Liquor Shop – a beneficiary of the PnP Spaza with the department.

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 41 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART B PERFORMANCE INFORMATION

TABLE 1.2 PROVINCIAL TARGETS FOR 2019/2020 ANNUAL PERFORMANCE PLAN FOR GAUTENG LIQUOR BOARD

Programme: Business Regulations and Governance

Sub-programme: Gauteng Liquor Board

Strategic Objectives Performance Indicator Actual Achieve- Actual Achieve- Actual Achieve- Planned Target Actual Achieve- Deviation from Comment on Deviations ment 2016/2017 ment 2017/2018 ment 2018/2019 ment Planned Target to 2019/2020 Actual Achieve- 2019/2020 ment 2019/2020

Properly regulate Number of liquor # # # 4 4 None None the liquor industry in compliance blitzes Gauteng conducted GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Number of liquor # 184 230 220 222 2 The overachievement awareness activities of the target conducted was attributable to partnerships established with liquor traders associations and industry stakeholders who partnered with the unit in conducting the liquor awareness activities Number of liquor 2 3 4 4 4 None None social responsibility

ANNUAL REPORT programmes supported

# New indicators that were not in the previous financial years

Strategy to Overcome Areas of Underperformance There was no underperformance noted under this sub-programme.

Changes to Planned Targets The indicator on the “Rand value spent on corporate social investment (CSI) programmes” will be monitored at operational level as it has external dependencies. The performance of such indicators are best managed through the operational plan. The program remains important for GLB as the regulator of the industry and as part of the general practice by similar institutions. 42

Linking performance with budgets The sub-programme’s overall performance expenditure for the year amounted to R26,3 million. The actual expenditure comprises only of staff compensation. The programme achieved all planned indicators in the 2019/20 Annual Plan. TABLE 1.2 PROVINCIAL TARGETS FOR 2019/2020 ANNUAL PERFORMANCE PLAN FOR GAUTENG LIQUOR BOARD

Programme: Business Regulations and Governance

Sub-programme: Gauteng Liquor Board

Strategic Objectives Performance Indicator Actual Achieve- Actual Achieve- Actual Achieve- Planned Target Actual Achieve- Deviation from Comment on Deviations ment 2016/2017 ment 2017/2018 ment 2018/2019 ment Planned Target to 2019/2020 Actual Achieve- 2019/2020 ment 2019/2020

Properly regulate Number of liquor # # # 4 4 None None the liquor industry in compliance blitzes Gauteng conducted GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Number of liquor # 184 230 220 222 2 The overachievement awareness activities of the target conducted was attributable to partnerships established with liquor traders associations and industry stakeholders who partnered with the unit in conducting the liquor awareness activities Number of liquor 2 3 4 4 4 None None social responsibility

ANNUAL REPORT programmes supported

# New indicators that were not in the previous financial years

Strategy to Overcome Areas of Underperformance There was no underperformance noted under this sub-programme.

Changes to Planned Targets The indicator on the “Rand value spent on corporate social investment (CSI) programmes” will be monitored at operational level as it has external dependencies. The performance of such indicators are best managed through the operational plan. The program remains important for GLB as the regulator of the industry and as part of the general practice by similar institutions. 42

Linking performance with budgets The sub-programme’s overall performance expenditure for the year amounted to R26,3 million. The actual expenditure comprises only of staff compensation. The programme achieved all planned indicators in the 2019/20 Annual Plan.

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART B PERFORMANCE INFORMATION

Sub-programme Expenditure Programme Name 2019/2020 2018/2019

Final Actual (Over)/ Under Final Actual (Over)/Under Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Gauteng Liquor Board 26 352 26 352 - 25 871 25 871 - Total 26 352 26 352 - 25 871 25 871 - GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 43 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART B PERFORMANCE INFORMATION

4.4.3 Gauteng Gambling Board (GGB) industry. In doing so, these priorities that existed within The GGB is a statutory body established in terms of section other programmes have been upgraded to full programmes. 3 of the Gauteng Gambling Act, No. 4 of 1995, as amended The programmes have been decentralised to ensure a (the Act). GGB is a public entity listed in Schedule 3C of the concentration of focus. Public Finance Management Act (PFMA). GGB’s primary function linked to the Department of Eco- Prior to August 1996, betting on horse-racing and other nomic Development’s programme relating to business reg- sporting events was the only form of legal gambling in ulation and governance is: Gauteng. During August 1996, the Act, was promulgated. ■ To regulate the gambling industry; and This Act legalised other forms of gambling in the Province ■ and provided for the establishment of the GGB Board. The ■■ Generate revenue from the industry and the following forms of activities are regulated by the GGB in regulation of services offered, for the socio-economic Gauteng: development of Gauteng.

■■ Casino gaming A core element of the GGB is to protect the public. This is ■■ Betting on horse-racing and sporting events achieved through the following: ■■ Bingo ■■ Ensuring integrity of gambling activities. Licencing of ■■ Limited pay-out gaming machines (route and site credible operators and suppliers of gaming equipment, operators) setting and regulating of gaming equipment standards, ■■ The manufacturing and supply of gambling equipment approval and registration of gaming equipment, In terms of section 2A of the Gauteng Gambling Act, 1995, registration of suitable persons to be engaged in the policy mandate rests with the MEC responsible for gambling occupations and ensuring regulatory gambling in the province. The GGB’s mandate is therefore compliance by licencees on an ongoing basis. linked to the Gauteng Department of Economic Develop- ■■ Eradication of illegal gambling activities. This is done ment’s Programme 04 relating to Business Regulation and to protect the public from unfair business practices, as Governance. illegal operators are not subjected to any regulatory The Gauteng Gambling Board’s mandate is to regulate and control to ensure fair business practices. control gambling in the province with a view to promoting ■■ Dispute resolution and punter assistance. The Board ethical business conduct, an inclusive economy, revenue receives and adjudicates complaints from the public generation for the fiscus and promoting responsible gam- arising from gambling disputes or other gambling bling. related activities. The Board’s strategic outcome orientated objectives are as ■■ Tax collections. The Board collects gambling taxes follows: and levies on gambling transactions on behalf of the Gauteng Provincial Government (GPG) and other ■■ Efficient and effective gambling regulation beneficiaries. ■■ Efficient revenue generation/collection. ■■ Measures to promote responsible gambling and ■■ Entrenching and broadening the transformation of the minimise incidences of gambling problem. The gambling industry GGB recognises that opportunities for gambling ■■ Eradication of illegal gambling pose particular risks for the people of Gauteng. To ■■ Public protection: The responsible gambling this end, the Board co-operates with other relevant programme promotes responsible gambling which organisations to assist people who fall prey to is aimed at ensuring the residents of Gauteng are gambling addiction. The following assistance is aware of the dangers associated with gambling, taking available to any person with a gambling problem: steps to assist persons who have developed gambling ■■ Self-exclusion. Self-exclusion is a system whereby problem. gamblers can voluntarily request to be excluded from ■■ CSI spending strategy is linked to the achievement of participating in gambling. government strategies, and ■■ Professional assistance. A general practitioner can ■■ ICT integration into business goals and objectives assist by referring people to clinics specialising in the treatment of addiction. There are also various The GGB had identified the need to prioritise revenue voluntary organisations which can be approached for collection, illegal gambling and transformation in the free counselling.

ANNUAL REPORT 44 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PERFORMANCE INFORMATION PARTPART BA

4.4.4 Governance establish correlation and insights between non-financial The sub-programme is responsible for exercising oversight and financial performance. The financial performance on GDED’s entities. Entities assist in expediting delivery analysis is important as it partly helps the Executive to of services for the realisation of the Department’s goals gauge whether there is return on investment. Previously and objectives. This involves monitoring of entities on this was not conducted due to lack of sufficient human compliance to regulatory requirements as stated in the resource capacity. PFMA, Protocol on Corporate Governance and King Code of Corporate Governance. Another added advantage of additional capacity is that the Department has been able, also in the third quarter, to Treasury Regulation 30.2.1 states that “The accounting conduct and compile a physical verification report on the authority of a public entity must establish procedures projects that are mainly being implemented by the GGDA for quarterly reporting to the executive authority to group. Observations and recommendations made are to be facilitate effective performance monitoring, evaluation communicated to entities such as The Innovation Hub (TIH) and corrective action”. Accordingly, a month after end of and the Gauteng Enterprise Propeller (GEP), particularly the quarter, entities submit their quarterly reports against on the need for these entities in future to strengthen their respective APPs to the Department. The reports are collaboration in implementing supportive and sustainable analysed for the development of the oversight report with interventions to SMMEs and co-ops that are in the eKasi corrective recommendations if it so warrants. Labs.

During the year under review, the Department successfully Agency Oversight and Governance (AOG) has been respon- facilitated the timeous signing of the Shareholder Compact sible for facilitating the conclusion of administrative pro- (2019/2020) by the MEC (Shareholder) and the boards of cesses towards the establishment of the Gauteng Industry the four respective agencies of GDED. Adherence to the Transformation and Regulatory Authority (GITRA). Process- Shareholder Compact, in particular the service delivery es are at an advanced stage where the legislative phase aspect of it, continues to be monitored and reported upon of the project is being implemented. The GITRA Policy quarterly. Statement is being prepared for approval by the provincial Executive Council and thereafter the draft legislation will The Department has successfully produced four (4) detailed be prepared and, once approved, will be submitted to the performance analysis reports on non-financial performance provincial Legislature for enactment. All these processes by the entities. Also, produced for the first time in the third should possibly be achieved during the 2020/21 financial quarter, was the financial performance analysis report to year.

A senior GDED official assisting a member of the public during the Qondis’ Ishishini Lakho campaign in Tshwane.

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 45 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART B PERFORMANCE INFORMATION

TABLE 1.3 PROVINCIAL TARGETS FOR 2019/2020 ANNUAL PERFORMANCE PLAN FOR GOVERNANCE

Programme: Business Regulations and Governance

Sub-programme: Governance

Strategic objectives Performance Indicator Actual Achieve- Actual Achieve- Actual Achieve- Planned Target Actual Achieve- Deviation from Comment on ment 2016/2017 ment 2017/2018 ment 2018/2019 2019/2020 ment Planned Target to `Deviations 2019/2020 Actual Achieve- ment 2019/2020

To ensure good Governance Number of oversight reports # # # 4 4 None None in GDED Public Entities/ produced Agencies None GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Number of shareholder # # 4 4 4 None compacts (Agencies) approved # New indicators that were not in the previous financial years

Strategy to Overcome Areas of Underperformance There was no underperformance noted under this sub-programme.

Changes to Planned Targets The indicator “Number of public entities performance analysis reports produced” was rephrased to “Number of oversight reports produced”. The change was as per the directive from executive authorities, in that agencies should take responsibility of their work and report present such at various oversight committees i.e. in the Legisla- ture. Therefore, AOG was then mandated to provide oversight in relation to entities performances, hence the change of the indicator. ANNUAL REPORT Linking performance with budgets The sub-programme’s overall performance expenditure for the year amounted to R21,9 million against the budget of R26,1 million resulting to an underspend of R4,1 million. The actual spent resulted in the programme achieving its planned targets.

Sub-programme Expenditure

Programme Name 2019/2020 2018/2019

Final Actual (Over)/ Under Final Actual (Over)/Under Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure

R’000 R’000 R’000 R’000 R’000 R’000 46 Governance 4 954 3 339 1 615 4 139 3 702 437 IGR and Strategic Partnerships 21 177 18 632 2 545 6 780 6 474 306

Total 26 131 21 971 4 160 10 919 10 176 743

- GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 437 306 743 PERFORMANCE INFORMATION PARTPART BA R’000 Expenditure `Deviations (Over)/Under Comment on Comment None None 4.5. PROGRAMME 5: ECONOMIC PLANNING A Thematic Intelligence Report (Township Baseline Study) was completed as planned and this solely focused on

3 702 6 474 4.5.1 Economic Planning Mogale City. In addition, surveys were conducted in the rest 10 176 R’000 2018/2019 Actual The strategic purpose of the programme is to provide of Gauteng townships that had not yet been covered and

Expenditure ahead-of-the curve economic insights and thought lead- the results will be released in the financial year 2020/21. Deviation from from Deviation - Achieve Actual ment 2019/2020 Planned Target to Planned Target None None ership in our quest to radically Transform, Modernize and Re-Industrialise Gauteng City Region’s economy (TMR 4 4 The project on GPG Macroeconomic Modelling and Agenda). The strategic objectives are: Capacity Building programme achieved set deliverables

4 139 6 780

10 919 for the year 2019/20. These include finalising estimations Final R’000 ment ■■ To provide evidence-based economic policies, of base model, building coefficient matrix, the work on the 2019/2020 Appropriation computer programme to be used in the model, and the two - Achieve Actual strategies and programmes to support the TMR agenda; training workshops conducted in August 2019 and March ■■ To develop, enhance and maintain the Macroeconomic 4 4 2020. The team will continue to work on the model’s Model for the Gauteng City Region’s economy to computer programme, over the next three months under 4 160 1 615 2 545 support and inform the implementation of the GCR the supervision of the Applied Development Research

R’000 Economic Development Plan; Solutions (ADRS), to produce the first full working version Expenditure 2019/2020 (Over)/ Under(Over)/

Planned Target ■■ To assess the implementation and conduct impact of the GPG model by the 2020/21 financial year as per studies of economic policies, strategies and project plan. 4 programmes to support the TMR agenda; and Furthermore, two (2) impact studies were conducted

3 339 ■■ To ensure radical economic transformation that 21 971 18 632 with the first one titled “The Impact Assessment Report R’000 2019/2020 Actual addresses the triple challenges of high unemployment, of Financial Inclusion on Poverty Alleviation in Gauteng” Expenditure

- Achieve Actual poverty and inequality (economic inclusion). presented at the Public-Sector Economists Forum (PSEF) ment 2018/2019 # conference in Kimberley on the 27th to 29th November For the year 2019/20, as part of provision of evidence and 2019. The second impact assessment report titled “The Impact of Foreign Direct Investment on Employment and insights, the Department managed to produce four (4) 4 954 26 131 21 177 EXCO barometer reports based on the developments that Gross Domestic Product” was completed in March 2020. Final R’000 emerged within the economic landscape. Ongoing eco- Appropriation - Achieve Actual ment 2017/2018 nomic information collation and analyses allowed continu- # # ous improvement of the reports throughout the year.

MEC Mosupyoe visit Ola’s Market (a beneficiary of the GDED and PnP Spaza programme) - Achieve Actual ment 2016/2017 # # Performance Indicator Performance Number of shareholder shareholder Number of (Agencies) compacts approved Number of oversight reports reports oversight Number of produced IGR and Strategic Partnerships IGR and Strategic Total Governance To ensure good Governance Governance good ensure To in GDED Public Entities/ Agencies Name Programme Programme: Business Regulations and Governance Regulations Business Programme: Governance Sub-programme: objectives Strategic # New indicators that were not in the previous financial years that were not in the previous financial years # New indicators ture. Therefore, AOG was then mandated to provide oversight in relation to entities performances, hence the change of the indicator. of the change hence to entities performances, in relation oversight was then mandated to provide AOG Therefore, ture. its planned targets. achieving in the programme R4,1 million. The actual spent resulted Strategy to Overcome Areas of Underperformance Areas to Overcome Strategy noted under this sub-programme. was no underperformance There to Planned Targets Changes The was change produced”. reports as per The to the was indicator “Number rephrased “Number of analysis oversight produced” of reports public entities performance authorities, in that i.e. of agencies should committees responsibility executive in their from and such take the work present report at Legisla directive various oversight with budgets performance Linking The sub-programme’s overall performance expenditure for the year amounted to R21,9 million against the budget of R26,1 million resulting to an underspend of Expenditure Sub-programme TABLE 1.3 PROVINCIAL TARGETS FOR 2019/2020 ANNUAL PERFORMANCE PLAN GOVERNANCE TARGETS 1.3 PROVINCIAL TABLE

ANNUAL REPORT ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 46 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 47 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART B PERFORMANCE INFORMATION

TABLE 1.1 PROVINCIAL TARGETS FOR 2019/2020 ANNUAL PERFORMANCE PLAN FOR ECONOMIC PLANNING

Programme: Economic Planning

Sub-programme: Economic Planning

Strategic objectives Performance Indicator Actual Achieve- Actual Achieve- Actual Achieve- Planned Target Actual Achieve- Deviation from Comment on Deviations ment 2016/2017 ment 2017/2018 ment 2018/2019 2019/2020 ment planned target to 2019/2020 Actual Achieve- ment 2019/2020

Develop informative Number of impact # 2 3 2 2 None None strategies for implement- assessment reports ing effective economic produced development programmes GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT in Gauteng Number of Gauteng # # 5 2 4 2 The overachievement economic barometer was based on availability reports produced of statistical data and by EXCO requesting more than two reports during the year.

Thematic intelligence # Thematic intel- Thematic Thematic Thematic None None report produced ligence report intelligence intelligence intelligence produced report produced report produced report produced

Gauteng econometric # # Gauteng Gauteng Gauteng None None modelling and capacity econometric econometric econometric building programme report modelling modelling modelling produced and capacity and capacity and capacity building building building

ANNUAL REPORT programme programme programme report produced report produced report produced # New indicators that were not in the previous financial years

Strategy to Overcome Areas of Underperformance There was no underperformance reported under this programme

Changes to Planned Targets The annual target for the indicator “Number of impact assessment reports produced” was reduced from three (3) to two (2) due to shortage of resources.

The indicators 1) Gauteng innovation strategy revised; and 2) Gauteng digital economy strategy developed were removed from the APP. The plan to develop these 48 strategies during the financial year was dropped because during the course of the financial year (June), the Premier announced that the Gauteng Provincial Government would develop the Gauteng Province-wide 4IR Strategy. Afterwards a decision was taken by the Executive that the Gauteng E-Government Department would lead the development of the strategy and that the strategy would include the digital economy and innovation. In order to avoid a duplication, then the GDED opted to drop the indicators and instead partner with E-Gov. GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 48

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART B PERFORMANCE INFORMATION

Linking performance with budgets The sub-programme’s overall performance expenditure for the year amounted to R 30,9 million against the budget of R38,6 million resulting to an underspending of R7,7 million. The actual spent resulted in the programme achieving all its planned targets.

Sub-programme Expenditure

Programme Name 2019/2020 2018/2019

Final Actual (Over)/ Under Final Actual (Over)/Under Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Policy and Planning 25 657 23 368 2 289 25 033 23 791 1 242 Research and Development 10 804 5 416 5 388 8 148 7 900 248 Knowledge Management 2 155 2 125 30 2 138 2 127 11 Total 38 616 30 910 7 706 35 319 33 818 1 501 ANNUAL REPORT 49 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART B PERFORMANCE INFORMATION

4.5.2 Sector and Industry annual targets were not met as planned. The tourism sector The sub-programme’s main functions is to enhance the generated R2 billion against the target of R1.9 billion for global competitiveness of resource base sectors, build a 2019/20 financial year. Moreover, the sector assisted 275 strong, globally competitive, innovative and diversified of enterprises against the annual target of 300. In the same manufacturing capabilities in Gauteng, enhance and in- vein, it created 11 828 jobs were against the annual target crease the contribution of service based sectors to job cre- of 14 000 jobs. ation, and coordinates work to identify and realise job and economic opportunities related to long term environmen- During the period under review, a total of 3 239 people tal and climate change challenges. underwent specialised training in the automotive sector, against the annual target of 3 100, across the various AIDC At the centre of building an economy that is inclusive and training sites. In addition, the Tshwane Automotive Hub addresses the triple challenges of poverty, inequality and Special Economic Zone was launched, signaling a move to- unemployment is the re-industrialisation of the Gauteng wards the re-industrialisation of the Gauteng City Region. City Region (GCR). The Growing Gauteng Together 2030 (GGT2030) agenda is to change the structure of the On the other hand, the creative industry sector reported provincial economy in terms of ownership and addressing the following achievements: the issue of de-industrialisation to build a seamlessly integrated economy for the GCR. ■■ 55 SMMEs trained in a UP Accredited Entrepreneurship course implemented by the South African Creative As part of the implementation of the above agenda, Gauteng Industries Incubator; City Region Economic Development Plan (GCR EDP) which ■■ 14 craft SMMEs graduated from the Johannesburg is sector based was developed and implemented. For the Chamber of Commerce Export Accelerator Incubator; 2019/20 financial year, the performance of provincial government in supporting various sectors of the economy ■■ 142 musicians trained in brand building and was tracked on a quarterly basis. To this end, the agencies commercialisation through the Intellectual Property of the Department of Economic Development provided and Music Rights Awareness Roadshows; and feedback on how various sectorial interventions were ■■ 18 Animation and gaming SMMEs graduated from implemented and the performance thereof. Johannesburg Chamber of Commerce Export Accelerator Incubator. The tourism sector surpassed the annual target of 26 domestic destination marketing initiatives by reaching 29 The business process services sector created a total of domestic destination. The sector however was hardest hit 3 916 jobs through the Action Lab and Monyetla pro- by the corona virus pandemic and as a result some of the grammes.

The Inaugural Gauteng SMME Summit held in partnership with the United Nations Development Programme, Business Doctors and PPC Cement.

ANNUAL REPORT 50 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART B PERFORMANCE INFORMATION

TABLE 1.2 PROVINCIAL TARGETS FOR 2019/2020 ANNUAL PERFORMANCE PLAN FOR SECTOR AND INDUSTRY DEVELOPMENT

Programme: Economic Planning

Sub-programme: Sector and Industry Development

Strategic Objectives Performance Indicator Actual Achieve- Actual Achieve- Actual Achieve- Planned Target Actual Achieve- Deviation fromP- Comment on ment 2016/2017 ment 2017/2018 ment 2018/2019 2019/2020 ment planned Target to Deviations 2019/2020 Actual Achieve- ment 2019/2020

Develop informative strate- Number of GCR EDP imple- # 2 4 4 4 None None gies for implementing effec- mentation reports produced tive economic development programmes in Gauteng GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Strategy to Overcome Areas of Underperformance There were no underperformances reported under this programme. Changes to Planned Targets The indicator “Business Case for the Gauteng State-Owned Bank approved by EXCO” was removed from the APP. The Gauteng Department of Economic Development (GDED) had planned to table the indicator “Business Case for Gauteng State Owned Bank approved by EXCO” for approval and implementation. Notwithstanding the above, the key development relating to the establishment of state-owned banks in the country was the introduction of the Financial Matters Amendment Bill of 2019 which is coordinated by the National Treasury.

In this regard the project of establishing a State-Owned Bank in Gauteng will also have to satisfy the provisions and requirements of the Bill once the Bill is enacted. In this regard the decision was taken to reconfigure the Gauteng Enterprise Propeller (GEP) to become an industrial financier to business enterprises.

ANNUAL REPORT Linking performance with budgets The sub-programme overall performance expenditure for the year amounted to R49 million against the budget of R52,4 million resulting to an underspend of R3,3 million. The actual spent resulted in the programme achieving its planned targets.

Sub-programme Expenditure

Programme Name 2019/2020 2018/2019

Final Actual (Over)/ Under Final Actual (Over)/Under Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure

R’000 R’000 R’000 R’000 R’000 R’000 51 Sector and industry development 52 455 49 067 3 388 50 589 47 094 3 495 Total 52 455 49 067 3 388 50 589 47 094 3 495 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART B PERFORMANCE INFORMATION

4.5.3 Inclusive Economy established following similar co-operative principles. The The sub-programme’s main function is to facilitate the Department also continues to support five consumer co- empowerment of previously disadvantaged individuals and operatives through technical capacitation and workshops. communities; facilitate and support the establishment of a viable and sustainable co-operatives sector in the province The Department continues to financially support co- that contributes positively to economic growth and create operatives in line with the provincial imperatives. Financial decent work; and mobilise, align, coordinates and capacitate co-operatives seek to advance financial inclusion objectives local economies towards enhanced and sustainable regional especially considering township economy thereby creating economic development and integration. The Department, an alternative channel for accessing funds. Five (5) co- through the Inclusive Economy Unit, is responsible for operatives financial institutions (CFI) were supported monitoring the implementation of programmes aimed at during the year under review. The Department coordinated driving transformation for township communities. a CFI forum as a platform for information sharing. In addition, the Department is supporting the taxi industry to The Department continues to facilitate the township comply with registration requirements by the Co-operative economy programme. During the year under review, 10 Banks Development Agency. township seminars and exhibitions were held across the province. The sessions are meant to expose township The Department has also completed a township off-take products not only to potential public markets, but also to framework in order to facilitate sector specific market access township enterprises generally. The approach will help opportunities for the small enterprises. The Department, in cluster enterprises for the collective supply of goods collaboration with the Office of the Premier will develop a especially where individual capacity is low. web portal to facilitate clustering of enterprises, access to public and private sector opportunities. The Department provided support to five (5) consumer co-operatives in the province. A secondary consumer co- The Department also completed the Township operative has been established to facilitate collective Development Policy as a precursor for the development of development of the sector. A benchmarking exercise a Bill and, eventually, the Act. Four (4) workshops were held to Mpumalanga Province was undertaken as part of the with constitutional law experts as part of the stakeholder Department’s continuous process to empower and develop engagement as a mechanism for drawing technical inputs the sector. The benchmarking exercise was meant to expose into the policy drafting process. The state law advisors the consumer co-operatives in the province to operations have assumed the responsibility of drafting the Bill which of a grocery and wholesale warehouse in Mpumalanga will be routed to Legislature for approval.

The CFI Summit held by the Inclusive Economy unit.

ANNUAL REPORT 52 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART B PERFORMANCE INFORMATION

TABLE 1.3 PROVINCIAL TARGETS FOR 2019/2020 ANNUAL PERFORMANCE PLAN FOR INCLUSIVE ECONOMY

Programme: Economic Planning

Sub-programme: Inclusive Economy

Strategic objectives Performance Indicator Actual Achieve- Actual Achieve- Actual Achieve- Planned Target Actual Achieve- Deviation from Comment on ment 2016/2017 ment 2017/2018 ment 2018/2019 ment Planned Target to Deviations 2019/2020 Actual Achieve- 2019/2020 ment 2019/2020

Develop informative Number of TER implementa- # 4 4 4 4 None None strategies for implementing tion reports completed effective economic development programmes in

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Gauteng Number of financial co- # 3 2 5 5 None None operatives supported Number of consumer co-op- # 3 2 5 5 None None eratives supported Local production and content # # # Local Draft Local The Local Although framework adopted production production production the draft and content and content and content framework framework framework framework is was com- adopted has been still awaiting pleted, the completed. adoption. non-achieve- ment was due to the framework not

ANNUAL REPORT being adopted by the exco cycle. Off- take agreement # # # Off- take Off -take None None framework completed agreement agreement framework framework completed has been completed # New indicators that were not in the previous financial years

Strategy to Overcome Areas of Underperformance 53 The Local Production and Content Framework will be put through the EXCO cycle for adoption. GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART B PERFORMANCE INFORMATION

Changes to Planned Targets ■■ The indicator “Gauteng consumer co-operatives in all regions supported” was revised to “Number of consumer co-operatives supported” and the annual target was revised from being a qualitative target to quantitative target of five (5). The decision was taken by the Department that this indicator will read better and easier for reporting when we use quantities rather than qualities. ■■ Two (2) additional indicators were included in the revised APP as a directive from the Office of the Premier: 1) Local production and content framework adopted and; 2) Off- take agreement framework completed.

Linking performance with budgets The sub-programme overall performance expenditure for the year amounted to R 13,7 million against the budget of R17,8 million resulting to an underspend of GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT R4,1 million. The actual spent resulted in the program achieving its four (4) of the five (5) planned targets.

Sub-programme Expenditure

Programme Name 2019/2020 2018/2019

Final Actual (Over)/ Under Final Actual (Over)/Under Appropriation Expenditure Expenditure Appropriation Expenditure Expenditure

R’000 R’000 R’000 R’000 R’000 R’000

Inclusive Economy 17 854 13 723 4 131 15 284 13 568 1 716

Total 17 854 13 723 4 131 15 284 13 568 1 716 ANNUAL REPORT 54 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PERFORMANCE INFORMATION PARTPART BA

5. TRANSFER PAYMENTS 5.1. TRANSFER PAYMENTS TO PUBLIC ENTITIES Public entities receive sizeable transfer payments from government and are often the front-line providers of services on behalf of government. It is therefore important to understand the impact of these services on the community. Departments are requested to provide information on the services provided by these public entities, transfer payments to the public entities, the actual amount spent from the transfer received by the public entities, strategic achievements of the public entity. Departments must also comment on monthly monitoring systems or the lack thereof to monitor spending on such transfer payments. If such monitoring did take place, departments must provide details of difficulties experienced and what steps (if any) were taken to rectify such difficulties.

Name of Public Entity Services Rendered Amount Transferred Amount spent by the Achievements of the by the Public Entity to the Public Entity Public Entity Public Entity R’000 R’000 Gauteng Enterprise Propeller As per APP 2019/20 As per performance 245 771 201 679 (GEP) information Gauteng Tourism Authority As per APP 2019/20 As per performance 118 779 102 918 (GTA) information Cradle of Humankind World As per APP 2019/20 As per performance 76 823 50 615 Heritage Site information Dinokeng Projects As per APP 2019/20 As per performance 37 658 35 075 information Gauteng Growth and As per APP 2019/20 As per performance 636 813 411 780 Development Agency (GGDA) information Gauteng Liquor Board (GLB) As per APP 2019/20 As per performance 26 352 26 352 information Gauteng Gambling Board (GGB) As per APP 2019/20 As per performance 33 391 16 500 information

6. CONDITIONAL GRANTS 6.1. CONDITIONAL GRANTS AND EARMARKED FUNDS PAID Not applicable to the Department. 7. DONOR FUNDS Not applicable to the Department. 8. CAPITAL INVESTMENT Not applicable to the Department.

ANNUAL REPORT ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 54 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 55 PART C GOVERNANCE

ANNUAL REPORT 56 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GOVERNANCE PARTPART CA

1. INTRODUCTION The leadership of GDED is committed to the highest standard of corporate governance in fulfilling the Department’s mandate. Critical policies were reviewed and approved by the Head of Department to foster an ethical culture. The Department has established governance structures that monitor the effectiveness and efficiency of internal controls, governance and risk management. Risk management is an instrument used to support the achievement of performance and service delivery excellence as espoused by the Batho Pele principles. 2. RISK MANAGEMENT The Department subscribes to the GPG Risk Management Framework in carrying out all such responsibilities as well as the implementation and maintenance of its risk management processes as prescribed by the PFMA.

The Department has an approved Risk Management Strategy, Policy and the Implementation Plan in pursuance of good corporate governance and the management of risks. During the year under review, the Department conducted strategic, fraud and operational risk assessments with measurable mitigations and timelines. Risk registers for each category of risks (i.e. strategy, fraud and operational) were in place and tracked monthly to ensure that risks are managed to acceptable level. The risk identification was not a once-off event, the Department continuously identified emerging risks and developed mitigating action plans. Separate risk assessments were conducted for the Gauteng Liquor Board.

The Department has established Risk and Audit Management Committee (RAMC), which consists of heads of business units (Deputy Director Generals and Chief Directors), the oversight bodies (internal audit and the Gauteng Provincial Treasury’s Governance Unit) and chaired by an independent member. The Committee was formally appointed by the Accounting Officer and its affairs were regulated by the terms of reference. The RAMC has assisted the Accounting Officer with her risk oversight responsibilities by assessing the effectiveness of the risk management processes and systems within the Department. In addition, the committee monitored the implementation of internal and external audit recommendations to ensure that effective controls are in place to reduce the likelihood of repeat findings.

The RAMC chairperson reported quarterly to the HOD and the reports were shared and discussed at the audit committee meetings.

The following key strategic risks were identified for 2019/20 financial year for the Department and Gauteng Liquor Board: NO DEPARTMENT’S STRATEGIC RISKS 1 Inability to continue with business operation in the event of a disaster 2. Inability to facilitate economic growth and development within the province 3 Inadequate governance and oversight of the Agencies 4 Inadequate consumer protection 5 Reputational damage (fraud and corruption)

NO GAUTENG LIQUOR BOARD STRATEGIC RISKS: 1 Non-compliance with the Gauteng Liquor Act 2 of 2003 2. Financial sustainability of the entity (GLB) 3 Fraud and corruption 4 Unregulated shebeens

These risks remained between a medium and high rating at year-end and will be carried over to the 2020/21 financial year. However, efforts will be intensified to ensure such risks are managed and minimised so that they can be brought to an acceptable level within the Department.

In view of the Covid-19 pandemic, the Department conducted risk assessments to give effect to measures required by the relevant prescripts. The mitigating plans are being monitored regularly by the leadership of the Department and the province.

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 57 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART C GOVERNANCE

3. FRAUD AND CORRUPTION The Department’s Fraud Prevention Plan was reviewed with the assistance of the Gauteng Provincial Treasury and approved by the Accounting Officer during the year under review. The progress on the implementation of the fraud risk mitigation plan was reported to the RAMC and the Gauteng Provincial Forensic audit team quarterly by the risk management unit. Awareness sessions on anti- corruption and the Code of Conduct were held with the various business units in the Department.

The Whistle Blowing Policy was also reviewed and approved during the year under review. In terms of this policy, all employees are encouraged to report fraud and corruption. The policy outlines procedures on how internal and external stakeholders should report the suspected cases of fraud. The employees and external stakeholders are encouraged to report cases to various structures such as National Anti-Corruption Hotline (NACH); Premier’s Hotline; and the National Prosecuting Authority.

■■ The Province established Provincial Anti- Corruption Coordinating Committee (PACCC) and the Department participate in this committee by providing progress on fraud and corruption cases. The allegations of fraud and corruptions are investigated by the Gauteng Provincial Treasury’s Forensic Unit. The Chief Risk Officer follows through on the implementation of the recommendations. 4. MINIMISING CONFLICT OF INTEREST The Department adheres to the Financial Disclosure Framework. All Senior Management Service, and Middle Management Service members, as well as employees in the Supply Chain Management and Finance units declared their financial interests for the 2019/20 financial year. In addition, employees were encouraged to apply for Remunerative Work Outside the Employee’s Employment (RWOEE), which must be approved by the Executive Authority prior to conducting any remunerative work. The Department has Ethics Officers working closely with the Office of the Premier and Gauteng Public Service Commission on ethics related matters. Conflict of interest was declared by the Bid Adjudication, Bid Specification and Bid Evaluation committees, as well as interview panels when carrying out their duties. Members of these committees and interview panels are appointed by the Accounting Officer. The Department has the following policies to guide and minimise the risk of conflict of interest:

■■ RWOEE ■■ Financial disclosure ■■ The Code of Ethics and Business Conduct; and ■■ The Gift Policy

These policies were communicated and are easily accessible on GDED intranet. 5. CODE OF CONDUCT The Department adopted chapter two (2) of the Public Service Regulations of 2016, Code of Conduct, which require em- ployees to observe high ethical standards. The Code of Ethics and Business Conduct Policy was reviewed and approved by the Accounting Officer during the year under review. Awareness sessions were conducted with branches of the Depart- ment and during induction sessions. 6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES The Occupational Health and Safety (OHS) Act, Act 85 of 1993 makes it mandatory for any employer to provide an en- vironment that is safe and without risk to the health of employees. Such an environment is defined by the act which in- cludes regulations that provide safe work procedures and measures to ensure, the elimination or mitigation of any hazard or potential hazard to the safety of all employees.

In the financial year 2019/20, the Department trained health and safety representatives, 21 first aiders and 16 fire fight- ers/floor marshalls at both the head office and regional offices. These measures are to ensure that the Department is able to assist employees in any emergency situation that requires intervention by the health and safety representatives.

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In his address to the country on 15 March 2020, President Cyril Ramaphosa declared the state of disaster due to the worldwide spread of the novel corona virus (Covid-19). In support of the trajectory set by government, the Occupational Health and Safety Policy as well as the strategy were revised to accommodate Covid-19 matters in line with the regulations. To promote compliance, risk assessment was conducted in the Department to identify the type of exposure that the Department might be faced with, as well as to put the required control and preventative measures in place to curtail the threat and promote health and safety for employees, visitors and contractors in the workplace.

To maintain a sterile work environment, the Department has implemented preventative measures that are ongoing and enhanced by information availability and sharing on COVID-19 protocols as a means to promote hygiene behaviours at workplace. 7. PORTFOLIO COMMITTEES The following are Portfolio Committees meeting dates:

MEETING DESCRIPTION DATE OF THE MEETING Presentation of the Fourth Quarter (2018/19 FY) Report and the Budget 19 July 2019 Allocation for 2019/20 FY to the Portfolio Committee Presentation of the First Quarter Report for 2019/20 FY 30 August 2019 Presentations of the Annual and Second Quarter Reports 14 November 2019 Presentation of the Third Quarter Report for 2019/20 FY 18 February 2020

After submitting reports to the Committee, the committee analyses the reports and sends clarity seeking questions to the Department to provide further information. The Department provided responses to all the clarity-seeking questions sent by the Portfolio Committee for the year under review.

The Committee forwarded the resolutions emanating from its oversight reports as adopted by the House to the Department, which have been responded to and submitted to the Committee.

President Ramaphosa delivering the keynote address at the sod turning for the Tshwane Automotive SEZ in Silverton on 05 November 2019.

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8. SCOPA RESOLUTIONS

Resolution No. Subject Details Response by the de- Resolved (Yes/No) partment Maropeng A’ Afrika Leisure The Department must The tender for the MAL due No (MAL) provide the Committee diligence process was ad- with a progress report vertised in January 2020. A detailing the outcome compulsory briefing session of the competitive was held in February 2020. procurement process to The Bid Evaluation Commit- undertake a due diligence tee finalised the evaluation that will advise the process on 20 March 2020 Department about the and a recommendation has validity and appropriate been made on the appoint- accounting and treatment ment of a service provider. of MAL assets and liabilities, contract, debtors, creditors, commitments and investments prior to being recorded and accounted in the department financial statements every quarter and continuing until end of June 2020.

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8. SCOPA RESOLUTIONS

Resolution No. Subject Details Response by the de- Resolved (Yes/No) partment Performance information The Department must Usefulness Yes develop and implement In line with the stipulations adequate measures to of the Departments determine the usefulness Monitoring and Evaluation and reliability of the framework, the Department reported performance has ensured the usefulness information and provide of performance information the Committee with a reported. All information progress report detailing reported is based on the effectiveness of the the Annual Performance measures implemented Plan. The data reported every quarter and should reflect stable and continuing up until the end consistent data collection of June 2020. approaches including analysis over time. The Department ensures that this is met by outlining a technical indicator description in the APP, at planning phase. All data reported is confirmed against the description. This process has been effective as it streamlines the evidence required to support the indicator.

Reliability In line with the stipulation in the Department’s Monitoring and Evaluation framework, the Department has ensured the validity of performance information reported. Measures are put in place to ensure that the data is valid to the extent that it clearly, directly and adequately represents the result it was intended to measure. The processes as set by the Department have been effective. The M&E unit met with all unit managers and discussed the progress of performance reported, 80% of information reported was accurate. Discussions were held on the inconsistencies between information reported and the supporting portfolios of evidence. All information was then reported in line with the supporting evidence. The Department is therefore confident on the effectiveness of the process implemented.

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8. SCOPA RESOLUTIONS

Resolution No. Subject Details Response by the de- Resolved (Yes/No) partment Adequate controls The Department must The Department has Yes implement adequate implemented adequate controls around controls around procurement and contract procurement and contract management and provide management by ensuring the Committee with a that it procures goods progress report detailing and services from the the effectiveness of the suppliers sourced through controls every quarter and the National Treasury’s continuing until the end of Central Supplier Database June 2020. (CSD), which ensures that the Department complies with the related National Treasury prescripts such as tax compliance and CSD registration status of suppliers.

During the 2019/20 financial year, the Department has sourced at least three quotations when procuring all goods and services, except in the event where it was impracticable to do so, or the services are of a sole supplier or emergency nature, in which instances the goods or services was procured via a deviation process that was approved by the Head of Department.

The Department’s Supply Chain Management (SCM) Directorate continues to engage and consult with the Gauteng Provincial Treasury’s SCM Branch to ensure compliance and adherence with SCM regulations and prescripts. It has also developed and implemented a Standard Operating Procedure (SOP) related to contract management to ensure that the controls are managed effectively and efficiently on all active contracts This will also ensure that operational discipline as well as the overall control environment are strengthened and enhanced resulting in the improved achievement of a clean audit opinion outcome.

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9. PRIOR MODIFICATIONS TO AUDIT REPORTS GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT The following is a summary of prior year significant audit findings, in relation to the Department, and the progress achieved in resolving them:

Nature of Qualification, Disclaimer, Adverse Opinion and Financial Year in Progress Made in Clearing / Resolving the Matter Matters of Non-compliance which it First Arose Some of the goods and services with a transaction 2018/19 In the 2018/19 financial year, the Department value of below R500 000 were procured without procured service through standing delegation. obtaining the required price quotations, in In the current year, the Department did not contravention of Treasury regulation 16A6.1. make use of standing delegation and followed the RFQ process (three quotations).

Where it was impractical to obtain three quotations, deviation processes, in line with the SCM regulations, were sourced and approved by the Head of Department Some of the contracts were extended or modi- 2018/19 In progress: The Department is dependant on fied without the approval of a properly delegat- the Department of Infrastructure Development ed official as required by section 44 of the PFMA (DID) to source accommodation for regional and Treasury regulations 8.1 and 8.2. offices. DID is in the process of sourcing accommodation for the Department. Payments were made before receipt of goods or 2018/19 The Department took a decision not to pre-pay services, in contravention of Treasury regulation any goods or services. 15.10.1.2 (c).

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GAUTENG LIQUOR BOARD The following is a summary of prior year significant audit findings and progress achieved in resolving them, in relation to the Gauteng Liquor Board:

Nature of Qualification, Disclaimer, Adverse Financial Year in which it First Progress Made in Clearing / Resolving the Mat- Opinion and Matters of Non-compliance Arose ter The financial statements submitted 2015/16 In progress: Financial Statements were for auditing were not prepared in all prepared and reviewed quarterly by the material respects in accordance with the CFO, the Gauteng Provincial Treasury and requirements of section 40(1)(b) of the the Audit Committee. PFMA.

Material misstatements in the statement of changes in net assets, related parties and revenue identified by the auditors in the submitted financial statements were corrected subsequently, resulting in the financial statements receiving an unqualified audit opinion. Revenue management penalties were 2015/16 Resolved: No findings were identified not correctly charged as per the section by the external auditors during the year 100 of the Gauteng Liquor Act.2 of 2003 under review. and it was noted that renewals were incorrectly charged using the outdated tariff structure.

Effective and appropriate steps were not taken to collect all money due, as required by section 38(1)(c)(i) of the PFMA and Treasury Regulations 11.2.1, 15.10.1.2(a) and 15.10.1.2(e).

10. INTERNAL CONTROL UNIT The Department does not have a dedicated Internal Control Unit. However, internal control matters are the responsibility of the relevant business units. The Risk Management Unit conducted quarterly key controls reviews to assess the effectiveness, efficiency and transparency of control activities. The report relating to the assessment of key controls was presented quarterly to the RAMC and the audit committee. In addition, the internal and external auditors evaluated the effectiveness of internal controls and action plans were developed by management to address deficiencies identified. The implementation of action plans emanating from the reviews and audits were tracked by the Risk Management Unit, the Gauteng Audit Services (GAS) and the Cluster 1 Audit Committee. 11. INTERNAL AUDIT AND AUDIT COMMITTEES The internal audit work for the Department is conducted by the Gauteng Audit Services (GAS), a unit of the Gauteng Provincial Treasury. GAS provides internal audit services to all the departments in the province on a shared service model. GAS provides assurance on the Department’s effectiveness and efficiency of internal controls, governance and risk management.

A risk-based audit approach was followed and 100% of audit were conducted and reports issued as per the internal audit plan for the department and GLB. All Recommendations made by GAS were prioritised and tracked monthly by the Risk Management Unit. The progress regarding the implementation of the action plans was reported to the risk management committee and the audit committee quarterly. The Department proactively mitigated audit findings raised by GAS throughout the year.

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The following audits were conducted by the internal auditors during the year under review for the Department:

Internal Audit Activities Approved Audit Status Planned Date RISK & COMPLIANCE AUDIT

Business continuity management Apr 2019 Issued Corporate governance and risk management Jul 2019 Issued Follow-up on GAS audits: transfers to entities Sep 2019 Issued Follow-up on GAS audits: supply chain management - procure to pay Sep 2019 Issued Follow- up on AG significant findings Nov 2019 Issued Contract management Oct 2019 Issued Follow-up on GAS audits: financial management Jan 2020 Issued PERFORMANCE AUDIT

Performance information Oct 2019 Issued Proactive assurance review of the draft 2020/21-2025 Strategic Plan (SP) and the draft Oct 2019 Issued 2020/21 Annual Performance Plan (APP) IT AUDIT

Data analysis - SCM / HR / FIN (Q2) Jul 2019 Issued ICT risk assessment Oct 2019 Issued Data analysis - SCM / HR / FIN (Q4) Jan 2020 Issued

The following audits were conducted by the internal auditors during the year under review for Gauteng Liquor Board:

GLB Internal Audit Activities Approved Audit Status Planned Date RISK & COMPLIANCE AUDIT

Review on Corporate Governance (combined with GDED audit) Jul 2019 Issued Review on the Liquor Licence Inspectorate Jan 2020

Follow-up on AG’s significant findings Nov 2019 Issued Follow-up on application and renewal of liquor licences Aug 2019 Issued Follow-up on revenue management Dec 2019 Issued PERFORMANCE AUDIT

Peformance information (combined with GDED PI audit)

IT AUDIT

Data analysis - SCM / HR / FIN (Q2) Jul 2019 Issued GLB application controls review Jul 2019 Issued Data analysis - SCM/HR/FIN (Q4) Jan 2020 Issued

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The Audit Committee serves a cluster of departments and provides oversight on audit, risk management, financial and non-financial matters. The Audit Committee approved the Department’s three-year rolling Internal Audit Plan, Internal Audit Charter and the Auditor General’s Audit Strategy and Budget. All the meetings of the Audit Committee took place as scheduled and were attended by representatives of the Department and external members. Names and qualifications of Audit Committee external members are as follows. 12. THE PROMOTION OF ACCESS TO INFORMATION ACT, 2000 (ACT NO.2 OF 2000) (PAIA)

The PAIA is intended to foster a culture of transparency and accountability in public and private institutions by giving effect to the right of access to information as enshrined in section 32(1) of the Constitution of the Republic. The Department of Economic Development has complied with the requirements of the PAIA during the 2019/2020 financial year.

A report was submitted by the Department to the South African Human Rights Commission as required by Section 32 of the Act. A section 14 Manual which deals with the functions, contact details and index of records held by the Department and as required by Section 15 of the Act was compiled and submitted to the Department of Justice and Constitutional Development and published in the Government Gazette. The Manual is available on the official website in four official languages (English, Afrikaans, isiZulu and Sesotho). The Department received no requests for information in terms of the PAIA in 2019/2020 financial year.

The table below discloses relevant information on the audit committee members:

Name Qualifications Internal or If internal, Date appointed Date Resigned No. of external position in the Meetings department attended

Ayanda Mafuleka ■■ LLB degree External 01 September Resigned 0 2018 01 November ■■ Chartered Accountant 2019 - CA (SA) ■■ Advanced Financial Management Certificate ■■ B.Compt (Honours) ■■ BCom

Collen Weapond ■■ BCom Honours External 08 November Current 4 Information 2017 (former- Chairperson) Technology ■■ Mtech Forensic Investigations ■■ LLB ■■ BTech Policing ■■ B.Iuris ■■ Diploma in Business Management ■■ Diploma in Compliance Management ■■ Diploma in Education

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Patrick Mnisi ■■ Bachelor of Laws External 01 September Current 3 2019 ■■ Post Grad Certificate in Compliance Management

Lungelwa ■■ Bachelor of External 11 August 2020 Current 1 Sonqishe Accounting Science. ■■ MBA ■■ Certificate in Governance

Billy Mokale ■■ Matric Exemption External 11 August 2020 Current 0 ■■ BPROC LLB ■■ Diploma in Corporate Law ■■ Programme for Management Development

George Higgins ■■ Chartered Accountant External 1 September (Acting 4 (SA) 2016 Member) ■■ B. Com (Hons) ■■ B. Com ■■ Higher Diploma in Auditing ■■ Registered Auditor

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REPORT OF THE AUDIT COMMITTEE – CLUSTER 01 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT

We are pleased to present our report for the financial year ended 31 March 2020.

Audit Committee and Attendance The Audit Committee (Committee) consists of the external Management of the Department and Internal Audit Members listed hereunder and is required to meet at least collectively to highlight risks and address challenges facing two times per annum as per the provisions of the Public the Department. A number of in-committee meetings Finance Management Act (PFMA). In terms of the approved were held to address internal control weaknesses and Terms of Reference (GPG Audit Committee Charter), four unresolved deviations within the Department. meetings were held during the current year i.e. three meetings to consider the Quarterly Performance Reporting Audit Committee Responsibility (financial and non-financial) and one meeting to review and The Committee reports that it has complied with its discuss the Annual Financial Statements. The meeting to responsibilities arising from section 38(1)(a) of the PFMA review and discuss the Auditor-General of South Africa’s and Treasury Regulation 3.1.13. The Committee also reports that it has adopted appropriate formal terms of (AGSA) Audit and Management Reports is scheduled to take th reference as its Audit Committee Charter, has regulated its place on the 29 September 2020. affairs in compliance with this Charter and has discharged all its responsibilities as contained therein. Non-Executive Members The effectiveness of internal control and Name of Member Number of Meetings attended Information and Communication Technology (ICT) Adv. Collen Weapond (former-Chairperson) 4 (Appointed 1 November 2017) Governance Ms. Lungelwa Sonqishe (Chairperson) 1 The Committee noted the improvement in the internal (Appointed 11 August 2020) control environment of the Department. However, full Mr. George Higgins (Acting Member)* 4 implementation of prior year recommendations of the (Appointed 1 September 2016) AGSA and GAS and compliance with laws and regulations Mr. Patrick Mnisi 3 in the Supply Chain Management function should be (Appointed 1 September 2019) maintained. Disagreements between Management and the Mr. Billy Mokale 0 AGSA on the interpretation of and the treatment of lease (Appointed 11 August 2020) arrangements and contracts signed has not yet resolved.

*Stand in member from another cluster Furthermore, Committee notes the improvement in the ICT environment, mainly the implementation of the Executive Members ICT Governance Framework which confirms that the In terms of the GPG Audit Committee Charter, officials Department maintains adequate IT Governance controls. listed hereunder are obliged to attend meetings of the Furthermore, the Committee noted that all AGSA and GAS Committee: recommendation were implemented by the Department. Some progress was made by the Department to implement and monitor its Disaster Recovery Plan and Business Compulsory Attendees Number of Meetings Continuity Processes. However, in light of Coronavirus attended pandemic, the Department should strengthen its Business Ms. Pumla Ncapayi (Accounting Officer) 4 Continuity Processes, specifically it’s Business Impact Mr. Lemmy Chappie (Acting Accounting Officer) 1 Analysis as specified in its Business Continuity Management Policy Version Four, to ensure optimal utilisation of its Mr. Kgomotso Mojapelo (Chief Financial Officer) 5 resources and capacity. Ms. Madiagane Morata (Chief Risk Officer) 5 Mr. Kweyama Velile (Chief Audit Executive) 5 The Committee also notes the improvement in performance, and advice the Department to ensure that its achieved targets is supported by the relevant portfolio The Audit Committee noted that the Accounting Officer of evidence. Predetermined objectives remain a challenge attended four (4) scheduled Committee meetings for the under Programme 4 – Business Regulations and needs to period under review. Therefore, the Committee is satisfied be a greater focus area in the forthcoming financial year. that the Department adhered to the provisions of the GPG The Department did not satisfactorily implement the Audit Committee Charter in relation to ensuring that there recommendations AGSA and Internal Audit findings raised is proper representation for the Accounting Officer. in previous years.

The Members of the Committee met with the Senior Our review of the findings of the Internal Audit work,

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which was based on the risk assessments conducted in the It was noted that a Quality Assurance Review was performed department revealed certain weaknesses, which were then during the year by an independent external assessor and raised with the Department. Internal Audit was assessed to be Generally Conformant with the International Standards for Professional Practice The following internal audit work was completed during of Internal Auditing. the year under review: In line with its mandate, the Committee will continue to ■■ Corporate Governance and Risk Management monitor the capacity and the resources allocated to the ■■ Follow-up on GAS audits: Transfers to Entities Internal Audit function. ■■ Follow-up on GAS audits: Supply Chain Management- Procure to Pay Risk Management Progress on the departmental risk management was ■■ Follow- up on AG significant findings reported to the Audit Committee on a quarterly basis. The ■■ Sector and Industry Development Audit Committee notes the effort made by the Department ■■ Contract Management to improve its risk management processes, three of its ■ Follow-up on GAS audits: Financial Management five key areas are rated as high and requires immediate ■ intervention. Management should take full responsibility ■■ Performance Information for the entire Enterprise Risk Management Process and ■■ Proactive Assurance continue to support the Chief Risk Officer to enhance the ■■ Data analysis - SCM / HR / FIN (Q2) performance of the Department. The Department should ensure that its high risk areas are adequately mitigated in order to obtain a clean administration. The Department The following were areas of concern: should ensure that it monitors the implementation of its COVID Risk Register. Due to the Department’s dependency on the entities to deliver its core mandate, it is critical that management Forensic Investigations put in place adequate and effective controls to ensure Investigations into alleged financial irregularities, financial proper oversight on the governance and performance of misconduct and fraud were performed during the year the entities throughout the financial year. Furthermore, under review. The Department is experiencing a backlog the management of the Business Continuity Management, in the finalisation of outstanding forensic investigations. Transfer Payments to Entities, Contract Management, Where forensic investigation assignments are finalised, Supply Chain Management and Performance Information the Committee will monitor the implementation need special attention. of recommendations as contained in the Forensic Investigation reports. The internal controls around the applications and renewal of liquor licences processes need to be strengthened. Furthermore, the findings raised by Auditor General and The quality of quarterly reports submitted in terms Internal Audit should also be implemented on time. of the PFMA and the Division of Revenue Act The Committee notes the content and quality of financial Internal Audit and non-financial quarterly reports prepared and The Audit Committee is satisfied that the Internal Audit submitted by the Accounting Officer of the Department plan represents a clear alignment with the key risks, has during the year under review and emphasise that the adequate information systems coverage, and a good Department must ensure that its financial are free from balance across the different categories of audits, i.e. risk- material misstatement and that its non-financial reports is based, mandatory, performance, computer and follow-up supported by the required portfolio of evidence. audits. The Audit Committee is satisfied that the internal auditors consulted with Management, Auditor General and Evaluation of Annual Financial Statements the Audit Committee on its Internal Audit Plan. The Audit Committee undertook the following activities related to Annual Financial Statements: The Audit Committee notes that the improvement in the communication between the Executive Management, ■ Audit Committee reviewed the draft Annual Financial the AGSA and the Internal Audit Function especially with ■ regards to the consultation on the Internal Audit Plan, which Statements prepared by the department before the interactions has strengthened the Corporate Governance submission of the annual financial statements to initiatives within the Department. the external auditors for audit the audit committee meeting held on 23rd June 2020, and recommended Coordination of efforts between internal audit and AGSA have been enhanced further during the year in the them for audit. provision of assurance services. The Committee believes ■■ Reviewed and discussed the audited Annual Financial this is an important step towards a fully effective combined Statements to be included in the Annual Report, with assurance. the AGSA and the Accounting Officer;

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■■ Reviewed the Audit Report of the AGSA; ■■ Reviewed the AGSA’s Management Report and Management’s response thereto; ■■ Reviewed the Department’s compliance with legal and regulatory provisions; and ■■ Reviewed significant adjustments resulting from the audit.?

The Audit Committee concurs with and accepts the AGSA’s conclusions on the Annual Financial Statements and is of the opinion that the audited Annual Financial Statements be accepted and read together with the report of the AGSA.

The Committee remains concerned with differences of opinion between management and AGSA on treatment of lease agreements that means unresolved.

One-on-One Meeting with the Accounting Officer The Committee has met with the Accounting Officer for the Department to address unresolved issues.

One-on-One Meetings with the Executive Authority The Committee met with the Executive Authority for the Department to apprise the MEC on the performance of the Department it believes that the frequency of these interactions would be more beneficial to the Executive Authority.

Auditor-General of South Africa The Audit Committee has met with the AGSA to ensure that there are no unresolved issues.

______Ms. Lungelwa Sonqishe Chairperson of the Audit Committee Date: 30 September 2020

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REPORT OF THE AUDIT COMMITTEE – CLUSTER 01 GAUTENG LIQUOR BOARD

We are pleased to present our report for the financial year ended 31 March 2020.

Audit Committee and Attendance The Audit Committee (Committee) consists of the external collectively to address risks and challenges facing the Members listed hereunder and is required to meet at least Entity. A number of in-committee meetings were held two times per annum as per provisions of the Public Finance to address control weaknesses in the system of internal Management Act (PFMA). In terms of the approved Terms of control of the Entity. Reference (GPG Audit Committee Charter), four meetings were held during the current year i.e. three meetings to Audit Committee Responsibility consider the Quarterly Performance Reporting (financial The Committee reports that it has complied with its and non-financial) and one meeting to review and discuss responsibilities arising from section 38(1)(a) of the PFMA the Annual Financial Statements. The meeting to review and Treasury Regulation 3.1.13. The Committee also and discuss the Auditor-General of South Africa’s (AGSA) reports that it has adopted appropriate formal terms of Audit and Management Reports is scheduled to take place reference as its Audit Committee Charter, has regulated its th on the 29 September 2020. affairs in compliance with this Charter and has discharged all its responsibilities as contained therein. Non-Executive Members The effectiveness of internal control and Information Name of Member Number of Meetings attended and Communication Technology (ICT) Governance Adv. Collen Weapond (former-Chairperson) 4 The Committee has observed that the overall control (Appointed 1 November 2017) environment of the Entity remained stagnant during the Ms. Lungelwa Sonqishe (Chairperson) 1 year under review. Significant deficiencies in the system (Appointed 11 August 2020) of internal control have been reported in the internal and Mr. George Higgins (Acting Member)* 4 external Audit Reports. The internal controls around the (Appointed 1 September 2016) collection and recognition of revenue remains a concern Mr. Patrick Mnisi 3 due to the non-functionality of the Automated System. (Appointed 1 September 2019) The Department and the Entity has confirmed that the Mr. Billy Mokale 0 Automated System did not have a Maintenance Contract (Appointed 11 August 2020) in place to ensure that the System remains operational. The Audit Committee will continue to monitor the system *Stand in member from another cluster of internal controls that the Entity and the Department is implementing as well as recommendations made by Executive Members the AGSA. The Committee encouraged the Department In terms of the GPG Audit Committee Charter, officials and Entity to secure the Maintenance Contract and to listed hereunder are obliged to attend meetings of the operationalise the Automated System and to implement Audit Committee: the agreed action plans to address the previously reported AGSA and Internal Audit findings. Compulsory Attendees Number of Meetings attended The Audit Committee also reviewed progress with respect to the ICT Governance in line with the ICT Framework issued Ms. Pumla Ncapayi (Accounting Officer) 4 by the Department of Public Services and Administration Mr. Lemmy Chappie (Acting Accounting Officer) 1 and was satisfied with the improvements made during the Mr. Kgomotso Mojapelo (Chief Financial Officer) 5 course of the financial year. The Entity is encouraged to continue with its improvement plan that should take into Ms. Madiagane Morata (Chief Risk Officer) 5 account the external audit and internal audit findings. Mr. Kweyama Velile (Chief Audit Executive) 5 Our review of the findings of the Internal Audit work, The Committee noted that the Accounting Officer attended which was based on the risk assessments conducted in the three (4) scheduled Audit Committee meetings. Therefore, department revealed certain weaknesses, which were then the Committee is satisfied that the Gauteng Liquor Board raised with the Department. (Entity) adhered to the provisions of the GPG Audit Committee Charter in relation to ensuring that there is The following internal audit work was completed during proper representation for the Accounting Officer the year under review:

The Members of the Committee met with the Senior ■■ Review on Liquor License Inspectorate Management of the Department, Entity and Internal Audit ■■ Follow-up on AG Significant findings

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 71 GAUTENG LIQUOR BOARD PART C AUDIT COMMITTE REPORT

■■ Follow-up on Application and Renewal of liquor license Annual Financial Statements as well as the Nonfunctional ■■ Follow-up on Revenue Management Automated System remains at an unacceptable high risk level. Management should ensure that the actual ■ Performance Information (combined with GDED PI ■ management of risk is receiving the required attention. audit) ■■ Proactive Assurance (combined with GDED) Management should take full responsibility for the entire Enterprise Risk Management Process and continue to ■■ Data analysis - SCM/HR/FIN (Q2) support the Chief Risk Officer to even further enhance the ■■ GLB application controls review performance of the Department. ■■ Data analysis - SCM/HR/FIN (Q4) ■■ The following were areas of concern: Forensic Investigations The Department is undertaking a forensic investigation It should be noted that the slow implementation of the GLB into the procurement of the GLB Automated System. Automation project is negatively impacting on the overall The Committee intends to monitor the progress on internal control environment i.e. accounting and collection the investigation and the implementations of the of revenue by the Board. The non- implementation of the recommendations emanating from the investigation. system has resulted in a scope limitation on the IT General Controls review. Therefore, the Accounting Officer should The quality of quarterly reports submitted in terms take steps necessary to ensure that the system is fully of the PFMA and the Division of Revenue Act implemented within a reasonable period. The Audit Committee notes the content and quality of financial and non-financial quarterly reports prepared and The internal controls around the applications and renewal submitted by the Accounting Officer of the Department of liquor licences, liquor license inspectorate and revenue during the year under review and confirms that the reports management processes need to be strengthened. were in compliance with the statutory reporting framework. Furthermore, the findings raised by Auditor General and Internal Audit should also be implemented on time. Evaluation of Annual Financial Statements The Audit Committee undertook the following activities Internal Audit related to Annual Financial Statements: The Committee is satisfied that the Internal Audit plan represents a clear alignment with the key risks, has adequate information systems coverage, and a good ■■ Audit Committee reviewed the draft annual financial balance across the different categories of audits, i.e. risk- statements prepared by the department before the based, mandatory, performance, computer and follow-up submission of the annual financial statements to audits. the external auditors for audit the audit committee The Committee is concerned with regards to Management’s meeting held on 23rd June 2020, and recommended inadequate responses to action plans. Furthermore, the them for audit. Committee encourages the Executive Management, the AGSA and the Internal Audit Function, to cooperate and ■■ Reviewed and discussed the audited Annual Financial strengthened consultation in order to achieve effective Statements to be included in the Annual Report, with combined assurance at the Entity. However Efforts to coordinate efforts between internal audit and AGSA have the AGSA and the Accounting Officer; been enhanced further during the year in the provision ■■ Reviewed the Audit Report of the AGSA; of assurance services. The Committee believes this is ■■ Reviewed the AGSA’s Management Report and an important step towards a fully effective combined assurance. Management’s response thereto; ■■ Reviewed the Department’s compliance with legal and It was noted that a Quality Assurance Review (external regulatory provisions; and assessment) was performed by an external independent reviewer during the year and Internal Audit was assessed to The Audit Committee concurs with and accepts the AGSA’s be Generally Conformant with the International Standards conclusions on the Annual Financial Statements and is of for Professional Practice of Internal Auditing. the opinion that the audited Annual Financial Statements be accepted and read together with the report of the AGSA. As such, the Committee will continue to monitor the capacity and the resources allocated to the Internal Audit The Committee continues to express its concerns over function. irregular expenditure emanating from lease contract extension that have a negative impact on Audit outcome, Risk Management which remain unresolved between management and AGSA. Progress on the departmental risk management was The Department to whom the Entity reports is encouraged reported to the Audit Committee on a quarterly basis. The to assess the going concern status of Entity this will be an Committee notes with concern that the risks relating to ongoing focus of the Committee. Revenue Recognition, Completeness and Accuracy of the

ANNUAL REPORT 72 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG LIQUOR BOARD AUDIT COMMITTE REPORT PARTPART CA

However, the Committee noted the development wherein a business case was submitted to National Treasury for concurrence and the draft Bill which is currently undergoing pre-certification by the State Law Advisors in the Office of the Premier, to provide guidance with regard to the operationalization of the Gauteng Industry Transformation and Regulatory Authority (GITRA). This is in relation to a merger between the Entity {Gauteng Liquor Board (GLB)} and Gauteng Gambling Board (GGB) to form GITRA.

One-on-One Meeting with the Accounting Officer The Audit Committee has met with the Accounting Officer for the Department’s commitment to address unresolved issues.

One-on-One Meetings with the Executive Authority The Committee has met with the Executive Authority for the Department to apprise the MEC on the performance of the Department. The AC believes that the frequency of these interactions would be more beneficial to the Executive Authority.

Auditor-General of South Africa The Audit Committee has met with the AGSA to ensure that there are no unresolved issues.

______Ms. Lungelwa Sonqishe Chairperson of the Audit Committee Date: 30 September 2020

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 73 HUMAN RESOURCE PART D MANAGEMENT

ANNUAL REPORT 74 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT HUMAN RESOURCE MANAGEMENT PARTPART DA

1. INTRODUCTION The information contained in this part of the annual report was delayed by the changes in the Administration. More has been prescribed by the Minister for the Public Service effort will be made to ensure that these vacant critical and Administration for all departments in the public ser- positions are filled. vice. 50% target of women at SMS level 2. OVERVIEW OF HUMAN The progress towards achieving the 50% target for women at SMS level has been slow. As the recruitment process RESOURCES ensues priority will be given to women and people with The Human Resources (HR) services are provided by disabilities. The Employment Equity Committee will two directorates namely Capital Management and also continue to play its role in ensuring that workplace Organisational Efficiency. They are responsible for, among strategies, processes, policies and procedures are non- others, HR Planning, Organisational Development, HR discriminatory and in line with Employment Equity Act. strategy formulation, policy development, implementation, monitoring and evaluation with the aim of enabling the WORKFORCE PLANNING AND KEY STRATEGIES TO Department to achieve its objectives. The Department ATTRACT AND RECRUIT A SKILLED AND CAPABLE endeavours to continuously deliver on its mandate by WORKFORCE. attracting, recruiting, developing, retaining a skilled and The filling of SMS posts will be prioritised since most of capable workforce to ensure the provision of an effective them are vacant. This places an additional burden on other and efficient service. staff members because of the additional workload that they must carry. The Department will also review its HR THE STATUS OF HUMAN RESOURCES IN THE Plan in 2020/2024 to ensure that capacity is built in the DEPARTMENT. Department. The graduate programme implemented for The filling of Senior Management Services (SMS) positions Core has been key in creating a skills pipeline. Internships will be prioritised because they have been vacant for some and learnerships have successfully offered administrative time. The delay was caused by the changes in the Executive support functions and have been very beneficial in Authorities which required for the recruitment processes to providing work experience to young graduates. be re-started. The Department will endeavour to accelerate the process of filling these critical positions since it places EMPLOYEE PERFORMANCE MANAGEMENT an extra burden on other staff members because of the The Department has seen a great improvement in the additional workload that they have to carry. Human capital management of employee performance especially in is one of the most important resources any organisation terms of turn-around times which ultimately improved the can have, and if employees are happy with all or most of recognition and rewarding of good performance. There their working conditions, they become a valuable asset were policy changes in both the SMS and 1-12 levels in to an organisation. If they are dissatisfied, they become a this regard and HCM aspires to consistently address policy huge liability. interpretation and implementation through workshops and rigorous quality assurance processes. The Department has also embarked on a drive to address the issue of the nature of appointment of some SMS members EMPLOYEE WELLNESS PROGRAMMES who are appointed on contract. This has seen a department losing a lot of skilled and experienced incumbents, and has The Department has a well-established and an accessible resulted in a high turnover rate which leads to additional Wellness Centre facility. The unit in collaboration with costs to the Department because of advertisements and its partners, Government Employees Medical Scheme recruitment expenses. Furthermore, if a person is recruited (GEMS) and Careways, have successfully coordinated from another province, the costs increase because of successful campaigns for HIV/AIDS testing and counselling, resettlement expenditure. Training costs may also escalate TB screening, diabetics, body mass index, hypertension as new employees have to be trained. and cholesterol testing. Various training and awareness campaigns were implemented. Both the employees HUMAN RESOURCE PRIORITIES FOR THE YEAR UNDER and their dependents continued to receive professional counselling services for psychological support as and REVIEW AND THE IMPACT OF THESE. when required. The programme experienced an increase in During the year under review the unit committed itself to participation on proactive activities like road running walks the following: and races .The success of the programme is also attributed to the supporting role that is played by the Wellness Filling of critical vacancies Committee but more especially the Wellness Champions. The process of filling critical SMS positions in the Department

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 75 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

HIGHLIGHT ACHIEVEMENTS AND CHALLENGES FACED In order for the Department to achieve its strategic BY THE DEPARTMENT, AS WELL AS FUTURE HUMAN objectives, its organisational structure must be well RESOURCE PLANS /GOALS. designed, funded and approved. The Departments’ focus will be to ensure that all processes are fulfilled to ensure concurrence / approval of the structure by the Minister of Achievements Public Service and Administration. The Department embraced continuous learning through the development and implementation of interventions to Vacancies address skills gaps. There was an increase in the number The Department will be focusing on filling vacant of SMS members who attended Project Khaedu and as a critical positions especially at the Executive and Senior result participated in field assignments by visiting public Management levels. institutions with an aim of identifying gaps in order to come up with recommendations to improve service delivery. The department also presented yet another milestone SMS appointed on Contract by increasing its intake on internship and learnership The Department will also explore ways of addressing the programmes. Furthermore, the Department awarded 32 challenge of SMS appointed on contract. bursaries in pursuit of further education and training and expand the current skill set of its employees. In line with Employment Equity the pillar on the modernisation of the public service, there The Department will also continue to prioritise the has been an increase in the utilisation of the technological employment of women in Senior Management positions to systems, mainly an improvement in the compliance by ensure compliance to the national target of 50%. managers regarding online payroll certification.

Challenges 3. HUMAN RESOURCES OVERSIGHT The Department has seen an increase in the vacancy rate, STATISTICS which is currently above the 10% stipulated by DPSA. During this financial period the vacancy rate has increased 3.1 PERSONNEL RELATED EXPENDITURE from 8% to 11.3%. This is attributed to the delay in filling The following tables summarises the final audited person- the SMS vacancies. nel related expenditure by programme and by salary bands. In particular, it provides an indication of the following: HUMAN RESOURCE PRIORITIES FOR THE YEAR UNDER REVIEW. ■■ amount spent on personnel ■■ amount spent on salaries, overtime, homeowner’s Structure approval allowances and medical aid.

An employee getting a blood pressure check during the GDED Wellness Day.

ANNUAL REPORT 76 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.1.1 PERSONNEL EXPENDITURE BY PROGRAMME FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Programme Total Personnel Training Professional Personnel Average expenditure expenditure expenditure and special expenditure personnel (R’000) (R’000) (R’000) services as a % of total cost per expenditure expenditure employee (R’000) (R’000) ADMINISTRATION 243 712 126 380 741 - 52 562 BUSINESS REGULATION & GOVERNANCE 105 724 42 280 18 - 40 835 ECONOMIC PLANNING 93 700 56 793 38 - 61 733

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT INTEGRATED ECON DEVELP SERV 245 771 - - - - 21 TRADE AND SECTOR DEVELOPMENT 870 073 - - - - 363 Total as on Financial Systems (BAS) 1 558 980 225 453 797 - 14 583

TABLE 3.1.2 PERSONNEL COSTS BY SALARY BAND FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Salary band Personnel % of total No. of Average expenditure personnel employees personnel (R’000) cost cost per employee (R’000) Skilled (Levels 3-5) 10 237 5 39 262

ANNUAL REPORT Highly skilled production (Levels 6-8) 36 665 17 93 394 Highly skilled supervision (Levels 9-12) 105 722 48 151 700 Senior management (Levels >= 13) 27 814 13 21 1 324 Contract (Levels 3-5) 63 - - - Contract (Levels 9-12) 3 863 2 3 1 288 Contract (Levels >= 13) 30 473 14 21 1 451 Contract Other 3 462 2 55 63

77 TOTAL 218 298 100 384 568 Note: The personnel expenditure on table 3.1.2 above excludes manual payment processed on BAS. GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.1.3 SALARIES, OVERTIME, HOME OWNERS ALLOWANCE AND MEDICAL AID BY PROGRAMME FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Programme Salaries Overtime Home Owners Allowance Medical Aid Amount Salaries Amount Overtime Amount HOA as a % Amount Medical aid (R’000 as a % of (R’000) as a % of (R’000) of personnel (R’000) as a % of personnel personnel costs personnel costs costs costs ECONOMIC PLANNING 7 465 86 - - 247 3 166 2 ADMINISTRATION 75 437 85 14 - 1 856 2 3 239 4

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT BUSINES REGULATION & GOVERN 7 102 87 - - 47 1 205 3 INTEGRATED ECON DEVELP SERV 14 887 84 - - 199 1 806 5 ADMINISTRATION (7/8) 38 545 187 - - 686 2 1 134 3 INTERG ECO DEV SERV (IEDS)7/8 9 734 87 - - 205 2 164 2 BUSINESS REGULA & GOV (BRG)7/8 20 452 84 - - 566 2 1 141 5 TRADE AND SECTOR DEVELOPMENT 13 237 86 - - 191 1 334 2 TOTAL 186 858 85 14 - 3 997 2 7 188 3 ANNUAL REPORT 78 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 78

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.1.4 SALARIES, OVERTIME, HOME OWNERS ALLOWANCE AND MEDICAL AID BY SALARY BAND FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Salary band Salaries Overtime Home Owners Allowance Medical Aid

Amount Salaries Amount Overtime Amount HOA as a % Amount Medical aid (R’000 as a % of (R’000) as a % of (R’000) of personnel (R’000) as a % of personnel personnel costs personnel costs costs costs Skilled (Levels 3-5) 7 827 77 14 - 487 5 904 9 Highly skilled production (Levels 6-8) 29 625 81 - - 1 193 3 2 215 6

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Highly skilled supervision (Levels 9-12) 90 515 85 - - 1 563 2 3 368 3 Senior management (Levels >= 13) 24 507 88 - - 333 1 374 1 Contract (Levels 3-5) 63 100 ------Contract (Levels 9-12) 3 660 94 - - 39 1 19 1 Contract (Levels >= 13) 27 210 89 - - 382 1 309 1 Contract Other 3 451 100 ------Total 186 858 85 14 - 3 997 2 7 188 3

3.2. EMPLOYMENT AND VACANCIES The tables in this section summarise the position with regard to employment and vacancies. ANNUAL REPORT

The following tables summarise the number of posts on the establishment, the number of employees, the vacancy rate, and whether there are any staff that are additional to the establishment.

This information is presented in terms of three key variables:

■■ Programme ■■ Salary band ■■ Critical occupations (see definition in notes below).

79 Departments have identified critical occupations that need to be monitored. In terms of current regulations, it is possible to create a post on the establishment that can be occupied by more than one employee. Therefore, the vacancy rate reflects the percentage of posts that are not filled. GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.2.1 EMPLOYMENT AND VACANCIES BY PROGRAMME AS ON 31 MARCH 2020

Programme Number of Number of Vacancy Rate Number of posts on posts filled employees approved additional establishment to the establishment ECONOMIC PLANNING, Permanent 12 11 8 2 GRF: ADMINISTRATION, Permanent 195 175 10 21 GRF: BUSINES REGULATION & GOVERNANCE, Permanent 19 17 11 5 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT GRF: INTEGRATED ECON DEVELP SERV, Permanent 30 26 13 1 PR1: ADMINISTRATION (7/8), Permanent 79 67 16 27 PR2: INTERGRATED ECONOMIC DEVELOPMENT SERVICES(IEDS)7/8, Permanent 17 17 - 3 PR3: ECON AND DEVELOP PLAN (6/7), Permanent 1 1 - - PR4: BUSINESS REGULA & GOV (BRG)7/8, Permanent 49 45 8 4 TRADE AND SECTOR DEVELOPMENT, Permanent 31 25 19 3 Total 433 384 11 66 ANNUAL REPORT 80 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 80

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.2.2 EMPLOYMENT AND VACANCIES BY SALARY BAND AS ON 31 MARCH 2020

Salary band Number of Number of Vacancy Rate Number of posts on posts filled employees approved additional establishment to the establishment Lower Skilled (Levels 1-2), Permanent 2 - 100 -

Skilled (Levels 3-5), Permanent 43 39 9 1 Highly Skilled Production (Levels 6-8), Permanent 110 93 16 4

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Highly Skilled Supervision (Levels 9-12), Permanent 164 151 8 - Senior Management (Levels >= 13), Permanent 34 21 38 1 Other, Permanent 56 56 - 55 Contract (Levels 9-12), Permanent 3 3 - 1 Contract (Levels >= 13), Permanent 21 21 - 4 TOTAL 433 384 11 66 ANNUAL REPORT 81 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.2.3 EMPLOYMENT AND VACANCIES BY CRITICAL OCCUPATIONS AS ON 31 MARCH 2020

Critical occupation Number of Number of Vacancy Rate Number of posts on posts filled employees approved additional establishment to the establishment ADMINISTRATIVE RELATED, Permanent 74 67 10 1 ARCHITECTS TOWN AND TRAFFIC PLANNERS, Permanent 1 1 - - CIVIL ENGINEERING TECHNICIANS, Permanent 1 1 - - GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT CLEANERS IN OFFICES WORKSHOPS HOSPITALS ETC., Permanent 4 4 - - CLIENT INFORM CLERKS (SWITCHB RECEPT INFORM CLERKS), Permanent 2 1 50 - COMMUNICATION AND INFORMATION RELATED, Permanent 6 6 - - ENGINEERING SCIENCES RELATED, Permanent 7 7 - - FINANCE AND ECONOMICS RELATED, Permanent 40 36 10 - FINANCIAL AND RELATED PROFESSIONALS, Permanent 12 12 - - FINANCIAL CLERKS AND CREDIT CONTROLLERS, Permanent 16 15 6 2 HEAD OF DEPARTMENT/CHIEF EXECUTIVE OFFICER, Permanent 1 1 - -

ANNUAL REPORT HUMAN RESOURCES & ORGANISAT DEVELOPM & RELATE PROF, Permanent 21 18 14 - HUMAN RESOURCES CLERKS, Permanent 4 4 - - HUMAN RESOURCES RELATED, Permanent 5 5 - 1 INFORMATION TECHNOLOGY RELATED, Permanent 4 4 - - LANGUAGE PRACTITIONERS INTERPRETERS & OTHER COMMUN, Permanent 4 4 - - LEGAL RELATED, Permanent 1 1 - - LIBRARY MAIL AND RELATED CLERKS, Permanent 11 10 9 -

82 LOGISTICAL SUPPORT PERSONNEL, Permanent 2 2 - - MATERIAL-RECORDING AND TRANSPORT CLERKS, Permanent 1 1 - - MESSENGERS, PORTERS AND DELIVERERS, Permanent 8 6 25 - OTHER ADMINISTRAT & RELATED CLERKS AND ORGANISERS, Permanent 81 79 3 47 TABLE 3.2.3 EMPLOYMENT AND VACANCIES BY CRITICAL OCCUPATIONS AS ON 31 MARCH 2020

Critical occupation Number of Number of Vacancy Rate Number of posts on posts filled employees approved additional establishment to the establishment ADMINISTRATIVE RELATED, Permanent 74 67 10 1 ARCHITECTS TOWN AND TRAFFIC PLANNERS, Permanent 1 1 - - CIVIL ENGINEERING TECHNICIANS, Permanent 1 1 - - GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT CLEANERS IN OFFICES WORKSHOPS HOSPITALS ETC., Permanent 4 4 - - CLIENT INFORM CLERKS (SWITCHB RECEPT INFORM CLERKS), Permanent 2 1 50 - COMMUNICATION AND INFORMATION RELATED, Permanent 6 6 - - ENGINEERING SCIENCES RELATED, Permanent 7 7 - - FINANCE AND ECONOMICS RELATED, Permanent 40 36 10 - FINANCIAL AND RELATED PROFESSIONALS, Permanent 12 12 - - FINANCIAL CLERKS AND CREDIT CONTROLLERS, Permanent 16 15 6 2 HEAD OF DEPARTMENT/CHIEF EXECUTIVE OFFICER, Permanent 1 1 - -

ANNUAL REPORT HUMAN RESOURCES & ORGANISAT DEVELOPM & RELATE PROF, Permanent 21 18 14 - HUMAN RESOURCES CLERKS, Permanent 4 4 - - HUMAN RESOURCES RELATED, Permanent 5 5 - 1 INFORMATION TECHNOLOGY RELATED, Permanent 4 4 - - LANGUAGE PRACTITIONERS INTERPRETERS & OTHER COMMUN, Permanent 4 4 - - LEGAL RELATED, Permanent 1 1 - - LIBRARY MAIL AND RELATED CLERKS, Permanent 11 10 9 -

82 LOGISTICAL SUPPORT PERSONNEL, Permanent 2 2 - - MATERIAL-RECORDING AND TRANSPORT CLERKS, Permanent 1 1 - - MESSENGERS, PORTERS AND DELIVERERS, Permanent 8 6 25 - OTHER ADMINISTRAT & RELATED CLERKS AND ORGANISERS, Permanent 81 79 3 47

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.2.3 EMPLOYMENT AND VACANCIES BY CRITICAL OCCUPATIONS AS ON 31 MARCH 2020

OTHER ADMINISTRATIVE POLICY AND RELATED OFFICERS, Permanent 7 5 29 - OTHER INFORMATION TECHNOLOGY PERSONNEL., Permanent 9 9 - - OTHER OCCUPATIONS, Permanent 5 5 - - SECRETARIES & OTHER KEYBOARD OPERATING CLERKS, Permanent 55 42 24 11 SENIOR MANAGERS, Permanent 50 37 26 4 TRADE/INDUSTRY ADVISERS & OTHER RELATED PROFESSION, Permanent 1 1 - -

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT TOTAL 433 384 11 66

3.3. FILLING OF SMS POSTS TABLE 3.3.1 SMS POST INFORMATION AS ON 31 MARCH 2020

SMS Level Total number Total number % of SMS Total number % of SMS of funded SMS of SMS posts posts filled of SMS posts posts vacant posts filled vacant Director-General/ Head of Department 1 1 100 - - Salary Level 16 - - - - - Salary Level 15 3 1 33 2 67

ANNUAL REPORT Salary Level 14 11 9 82 2 18 Salary Level 13 34 28 82 6 18 Total 49 39 80 10 20 83 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.3.2 SMS POST INFORMATION AS ON 30 SEPTEMBER 2019

SMS Level Total number Total number % of SMS Total number % of SMS of funded SMS of SMS posts posts filled of SMS posts posts vacant posts filled vacant Director-General/ Head of Department 1 1 100 - - Salary Level 16 - - - - - Salary Level 15 3 1 33 2 67 Salary Level 14 11 9 82 2 18 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Salary Level 13 34 30 88 4 12 Total 49 41 84 8 16

TABLE 3.3.3 ADVERTISING AND FILLING OF SMS POSTS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

SMS Level Advertising Filling of Posts Number of vacancies Number of vacancies per Number of vacancies per per level not filled in (6) level advertised in six (6) level filled in (6) months of months but filled in 12 months of becoming vacant becoming vacant months Director-General/ Head of Department - - -

ANNUAL REPORT Salary Level 16 - - - Salary Level 15 2 - - Salary Level 14 2 - - Salary Level 13 8 - 2 Total 12 - 2 84 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 84

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.3.4 REASONS FOR NOT HAVING COMPLIED WITH THE FILLING OF FUNDED VACANT SMS - ADVERTISED WITHIN SIX (6) MONTHS AND FILLED WITHIN 12 MONTHS AFTER BECOMING VACANT FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Reasons for vacancies not advertised within six months N/A

Reasons for vacancies not filled within 12 months Posts of the DDG: Business Regulation and Governance, DDG :Corporate Management, CD: Strategic Planning, M & E, Director: Manufacturing and Director: Financial Management were initially advertised in May 2019 and they had to be re-advertised in January and February 2020 respectively due to the changes in the Executive Authority.

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT TABLE 3.3.5 DISCIPLINARY STEPS TAKEN FOR NOT COMPLYING WITH THE PRESCRIBED TIMEFRAMES FOR FILLING SMS POSTS WITHIN 12 MONTHS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Reasons for vacancies not advertised within six months N/A

Reasons for vacancies not filled within six months The delays in the filling of SMS positions were as a result of the changes in the Executive Authority, this led to the positions to be re-advertised, thereby prolonging the recruitment process. ANNUAL REPORT 85 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

3.4. JOB EVALUATION TABLE 3.4.1 JOB EVALUATION BY SALARY BAND FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Salary band Number of Number % of posts Posts Upgraded Posts downgraded posts on of Jobs evaluated by approved Evaluated salary bands Number % of posts Number % of posts establishment evaluated evaluated Lower Skilled (Levels 1-2) 2 ------Skilled (Levels 3-5) 43 ------GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Highly skilled production (Levels 6-8) 110 ------Highly skilled supervision 164 9 5.4% Nine (9) posts 5.4% - 5.4% (Levels 9-12) upgraded due to implementation of Resolution 01 of 2012

Senior Management Service Band A 21 ------Senior Management Service Band B 8 ------Senior Management Service Band C 4 ------Senior Management Service Band D 1 ------Contract (Level 9-12) 3 ------ANNUAL REPORT Contract Band A 14 ------Contract Band B 4 ------Contract Band C 2 ------Contract Band D 1 ------Other 56 ------Total 433 9 2 9 2 - 2 86 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 86

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.4.2 PROFILE OF EMPLOYEES WHOSE POSITIONS WERE UPGRADED DUE TO THEIR POSTS BEING UPGRADED FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Gender African Asian Coloured White Total Female 4 - - - 4 Male 5 - - - 5 Total 9 - - - 9

Employees with a disability None

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT TABLE 3.4.3 EMPLOYEES WITH SALARY LEVELS HIGHER THAN THOSE DETERMINED BY JOB EVALUATION BY OCCUPATION FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Occupation Number of employees Job evaluation level Remuneration level Reason for deviation ------Total number of employees whose salaries exceeded the level determined by job evaluation - Percentage of total employed N/A

TABLE 3.4.4 PROFILE OF EMPLOYEES WHO HAVE SALARY LEVELS HIGHER THAN THOSE DETERMINED BY JOB EVALUATION FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020 ANNUAL REPORT Gender African Asian Coloured White Total Female - - - - - Male - - - - - Total - - - - -

Employees with a disability - - - - -

87 Total number of Employees whose salaries exceeded the grades determine by job evaluation None GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

3.5. EMPLOYMENT CHANGES TABLE 3.5.1 ANNUAL TURNOVER RATES BY SALARY BAND FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Salary band Number of Appointments Terminations Turnover rate employees at and transfers and transfers beginning of into the out of the period department department 01 April 2019 Skilled (Levels 3-5) Permanent 41 2 1 2

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Highly Skilled Production (Levels 6-8) Permanent 93 2 2 2 Highly Skilled Supervision (Levels 9-12) Permanent 157 3 7 5 Senior Management Service Band A Permanent 16 2 2 13 Senior Management Service Band B Permanent 4 - - - Senior Management Service Band C Permanent 2 - 1 50 Senior Management Service Band D Permanent 1 2 1 100 Other Permanent 52 11 7 14 Contract (Levels 3-5) Permanent 1 - 1 100 Contract (Levels 9-12) Permanent 7 3 7 100

ANNUAL REPORT Contract Band A Permanent 18 1 5 28 Contract Band B Permanent 7 - 3 43 Contract Band C Permanent 4 - 2 50 Contract Band D Permanent 1 - - - TOTAL 404 26 39 10 88 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 88

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.5.2 ANNUAL TURNOVER RATES BY CRITICAL OCCUPATION FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Critical occupation Number of Appointments Terminations Turnover rate employees at and transfers and transfers beginning of into the out of the period department department 01 April 2019 Administrative-related Permanent 75 5 8 11 Architects Town and Traffic Planners Permanent 1 - - - Civil Engineering Technicians Permanent 1 - - -

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Cleaners in Offices Workshops Hospitals etc. Permanent 4 - - - Client Inform Clerks (switch receipt inform clerks) Permanent 1 - - - Communication and Information Related Permanent 6 - - - Engineering Sciences Related Permanent 7 - - - Finance and Economics Related Permanent 38 1 4 11 Financial and Related Professionals Permanent 10 1 - - Financial Clerks and Credit Controllers Permanent 17 - 1 6 Head Of Department/Chief Executive Officer Permanent 1 - - - Human Resources & Organisational Development & Relateed Proffessionals Permanent 21 - 4 19

ANNUAL REPORT Human Resources Clerks Permanent 3 1 - - Human Resources Related Permanent 4 - - - Information Technology Related Permanent 4 - - - Language Practitioners Interpreters & Other Commun Permanent 4 - - - Legal Related Permanent 1 - - - Library Mail and Related Clerks Permanent 11 1 1 9 Logistical Support Personnel Permanent 2 - - -

89 Material-Recording and Transport Clerks Permanent 1 - - - Messengers Porters And Deliverers Permanent 6 - - - Other Administrat & Related Clerks and Organisers Permanent 85 1 6 7 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.5.2 ANNUAL TURNOVER RATES BY CRITICAL OCCUPATION FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Other Administrative Policy and Related Officers Permanent 6 - 1 17 Other Information Technology Personnel Permanent 9 - - - Other Occupations Permanent 5 2 1 20 Secretaries & Other Keyboard Operating Clerks Permanent 35 11 3 9 Senior Managers Permanent 45 3 10 22 Trade/Industry Advisers & Other Related Profession Permanent 1 - - - GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT TOTAL 404 26 39 10

TABLE 3.5.3 REASONS WHY STAFF LEFT THE DEPARTMENT FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Termination Type Number % of Total Resignations Death - - Resignation 27 69 Expiry of contract 9 23 Dismissal – operational changes - -

ANNUAL REPORT Dismissal – misconduct - - Dismissal – inefficiency - - Discharged due to ill-health - - Retirement 3 8 Transfer to other Public Service Departments - - Other - - Total 39 100

90 Total number of employees who left as a % of total employment 10% GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 90

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.5.4 PROMOTIONS BY CRITICAL OCCUPATION FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Occupation Employees 01 Promotions to Salary level Progressions Notch April 2019 another salary promotions to another progression level as a % of notch within a as a % of employees by salary level employees by occupation occupation Administrative Related 75 - - 35 47 Architects Town And Traffic Planners 1 - - 1 100 Civil Engineering Technicians 1 - - 1 100

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Cleaners in Offices Workshops Hospitals, etc. 4 - - - - Client Inform Clerks (Switch board Reception Inform Clerks) 1 - - - - Communication and Information Related 6 - - 5 83 Engineering Sciences Related 7 - - 3 43 Finance and Economics Related 38 1 3 25 66 Financial and Related Professionals 10 - - 6 60 Financial Clerks and Credit Controllers 17 - - 14 82 Head Of Department/Chief Executive Officer 1 - - - - Human Resources & Organisational Development & Related Professionals 21 1 5 12 57

ANNUAL REPORT Human Resources Clerks 3 - - 3 100 Human Resources Related 4 1 25 1 25 Information Technology Related 4 - - 2 50 Language Practitioners Interpreters & Other Commun 4 - - 3 75 Legal Related 1 - - 1 100 Library Mail and Related Clerks 11 - - 2 18 Logistical Support Personnel 2 - - 2 100

91 Material-Recording And Transport Clerks 1 - - 1 100 Messengers Porters And Deliverers 6 - - 1 17 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.5.4 PROMOTIONS BY CRITICAL OCCUPATION FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Other Administrat & Related Clerks and Organisers 85 - - 20 24 Other Administrative Policy and Related Officers 6 - - 5 83 Other Information Technology Personnel. 9 - - 7 78 Other Occupations 5 - - 2 40 Secretaries & Other Keyboard Operating Clerks 35 - - 22 63 Senior Managers 45 - - 3 7 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Trade/Industry Advisers & Other Related Profession 1 - - - - TOTAL 404 3 1 177 44

TABLE 3.5.5 PROMOTIONS BY SALARY BAND FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Salary Band Employees Promotions to Salary bands Progressions Notch 01 April 2019 another salary promotions to another progression level as a % of notch within a as a % of employees by salary level employees by salary level salary bands Skilled (Levels 3-5), Permanent 41 - - 15 37 Highly Skilled Production (Levels 6-8), Permanent 93 1 1 68 73 ANNUAL REPORT Highly Skilled Supervision (Levels 9-12), Permanent 157 2 1 92 59 Senior Management (Levels >= 13), Permanent 23 - - 1 4 Other, Permanent 52 - - - - Contract (Levels 3-5), Permanent 1 - - - - Contract (Levels 9-12), Permanent 7 - - 1 14 Contract (Levels >= 13), Permanent 30 - - - - TOTAL 404 3 1 177 44 92 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 92

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

3.6. EMPLOYMENT EQUITY TABLE 3.6.1 TOTAL NUMBER OF EMPLOYEES (INCLUDING EMPLOYEES WITH DISABILITIES) IN EACH OF THE FOLLOWING OCCUPATIONAL CATEGORIES AS ON 31 MARCH 2020

Occupational category Male Female Total

African Coloured Indian White African Coloured Indian White Legislators, senior officials and managers 16 - 1 1 19 2 - - 39 Professionals 49 - 2 - 51 2 - - 104 Technicians and associate professionals 27 1 - 1 43 1 - 2 75 Clerks 40 1 1 - 106 4 - - 152

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Service and Sales Workers - - - - 1 - - - 1 Labourers and related workers 6 - - - 5 2 - - 13 Skilled agriculture and fishery workers ------Craft and related trades workers ------Plant and machine operators and assemblers ------Elementary occupations ------Total 138 2 4 2 225 11 - 2 384 Employees with disabilities 4 - - - 14 - - - 18

TABLE 3.6.2 TOTAL NUMBER OF EMPLOYEES (INCLUDING EMPLOYEES WITH DISABILITIES) IN EACH OF THE FOLLOWING OCCUPATIONAL BANDS AS ON 31 MARCH 2020

Occupational band Male Female Total ANNUAL REPORT African Coloured Indian White African Coloured Indian White

Top Management 3 - - - 2 - - - 5 Senior Management 16 - 1 1 17 2 - - 37 Professionally qualified and experienced specialists and 62 1 1 1 83 4 - 2 154 mid-management Skilled technical and academically qualified workers, 24 - 1 - 66 2 - - 93 junior management, supervisors, foreman and superintendents

93 Semi-skilled and discretionary decision making 16 - - - 21 2 - - 39 Unskilled and defined decision making 17 1 1 - 36 1 - - 56 Total 138 2 4 2 225 11 - 2 384 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.6.3 RECRUITMENT FOR THE PERIOD 01 APRIL 2019 TO 31 MARCH 2020

Occupational band Male Female Total

African Coloured Indian White African Coloured Indian White

Top Management, Permanent 1 - - - 1 - - - 2 Senior Management, Permanent - - - - 2 - - - 2 Professionally qualified and experienced specialists and mid-management, Permanent 1 - - - 2 - - - 3

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent 1 - - - 1 - - - 2 Semi-skilled and discretionary decision making, Permanent - - - - 2 - - - 2 Not Available, Permanent 4 - - - 7 - - - 11 Contract (Senior Management), Permanent - - - - 1 - - - 1 Contract (Professionally qualified), Permanent 2 - - - 1 - - - 3 Total 9 - - - 17 - - - 26 Employees with disabilities ------ANNUAL REPORT 94 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 94

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.6.4 PROMOTIONS FOR THE PERIOD 01 APRIL 2019 TO 31 MARCH 2020

Occupational band Male Female Total

African Coloured Indian White African Coloured Indian White

Top Management ------Senior Management - - - - 1 - - 1 1 Professionally qualified and experienced specialists and mid-management 40 - 1 1 48 3 - 51 94 Skilled technical and academically qualified workers, junior management, supervisors, foreman and GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT superintendents 21 - - - 46 2 - 48 69 Semi-skilled and discretionary decision making 7 - - - 8 - - 8 15 Contract (Professionally qualified), Permanent 1 ------1 Total 69 - 1 1 103 5 - 108 180 Employees with disabilities 4 - - - 10 - - - 14

TABLE 3.6.5 TERMINATIONS FOR THE PERIOD 01 APRIL 2019 TO 31 MARCH 2020

Occupational band Male Female Total

African Coloured Indian White African Coloured Indian White

ANNUAL REPORT Top Management, Permanent 2 ------2 Senior Management, Permanent 2 ------2 Professionally qualified and experienced specialists and mid-management, Permanent 4 - - - - - 1 - 7 Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent 1 ------2 Semi-skilled and discretionary decision making, Permanent ------1 Not Available, Permanent 3 ------7 95 Contract (Top Management), Permanent - - - - - 1 - - 2 Contract (Senior Management, Permanent 3 - 1 - - 1 - - 8 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.6.5 TERMINATIONS FOR THE PERIOD 01 APRIL 2019 TO 31 MARCH 2020

Contract (Professionally qualified), Permanent 3 ------7 Contract (Semi-skilled), Permanent ------1 TOTAL 18 - 1 - - 2 1 - 39 Employees with Disabilities ------

TABLE 3.6.6 DISCIPLINARY ACTION FOR THE PERIOD 01 APRIL 2019 TO 31 MARCH 2020

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Disciplinary action Male Female Total

African Coloured Indian White African Coloured Indian White

Written Warning 5 - - - 1 - - - 6

TABLE 3.6.7 SKILLS DEVELOPMENT FOR THE PERIOD 01 APRIL 2019 TO 31 MARCH 2020

Occupational category Male Female Total

African Coloured Indian White African Coloured Indian White

Legislators, senior officials and managers 11 - 1 - 9 1 - - 22 Professionals 22 - - - 65 1 - 1 89

ANNUAL REPORT Technicians and associate professionals 9 - - - 18 1 - - 28 Clerks 1 - - - 5 - - - 6 Service and sales workers ------Skilled agriculture and fishery workers ------Craft and related trades workers ------Plant and machine operators and assemblers ------Elementary occupations 2 - - - 2 - 1 - 5 Total 45 - 1 - 99 3 1 1 150 96 Employees with disabilities 1 - - - 1 - - - 2 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 96

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

3.7. SIGNING OF PERFORMANCE AGREEMENTS BY SMS MEMBERS TABLE 3.7.1 SIGNING OF PERFORMANCE AGREEMENTS BY SMS MEMBERS AS ON 31 JULY 2019

SMS Level Total number Total number Total number Signed of funded SMS of SMS of signed performance posts members performance agreements agreements as % of total number of SMS members Director-General/ Head of Department 1 1 1 100 Salary Level 16 - - - - GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Salary Level 15 3 3 3 100 Salary Level 14 11 9 9 100 Salary Level 13 34 29 29 100 Total 49 42 42 100

TABLE 3.7.2 REASONS FOR NOT HAVING CONCLUDED PERFORMANCE AGREEMENTS FOR ALL SMS MEMBERS AS ON 31 JULY 2019

Reasons N/A

ANNUAL REPORT TABLE 3.7.3 DISCIPLINARY STEPS TAKEN AGAINST SMS MEMBERS FOR NOT HAVING CONCLUDED PERFORMANCE AGREEMENTS AS ON 31 JULY 2019

Reasons N/A 97 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

3.8. PERFORMANCE REWARDS TABLE 3.8.1 PERFORMANCE REWARDS BY RACE, GENDER AND DISABILITY FOR THE PERIOD 01 APRIL 2019 TO 31 MARCH 2020

Race and Gender Beneficiary Profile Cost Number of Number of % of total Cost (R’000) Average cost beneficiaries employees within group per employee

African, Female 86 211 41 1 627 18 919 African, Male 72 134 54 1 487 20 649 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Asian, Female 1 - - 19 19 350 Asian, Male 2 4 50 41 20 441 Coloured, Female 6 11 55 121 20 098 Coloured, Male - 2 - - - Total Blacks, Female 93 222 42 1 767 18 999 Total Blacks, Male 74 140 53 1 528 20 643 White, Female 1 2 50 20 20 163 White, Male - 2 - - -

ANNUAL REPORT Employees with a disability 8 18 44 164 20 526 Total 176 384 46 3 479 19 767

TABLE 3.8.2 PERFORMANCE REWARDS BY SALARY BAND FOR PERSONNEL BELOW SENIOR MANAGEMENT SERVICE FOR THE PERIOD 01 APRIL 2019 TO 31 MARCH 2020

Number of Number of % of total Total Cost Average cost beneficiaries employees within salary (R’000) per employee bands Skilled (Levels 3-5) 23 39 59 243 10 568 Highly Skilled Production (Levels 6-8) 57 93 61 871 15 284 98 Highly Skilled Supervision (Levels 9-12) 81 151 54 1 624 20 046 Other - 56 - - - 13 Contract (Levels 9-12) 1 3 33 20 19 865 Total 162 342 47 2 758 17 024 3.8. PERFORMANCE REWARDS TABLE 3.8.1 PERFORMANCE REWARDS BY RACE, GENDER AND DISABILITY FOR THE PERIOD 01 APRIL 2019 TO 31 MARCH 2020

Race and Gender Beneficiary Profile Cost Number of Number of % of total Cost (R’000) Average cost beneficiaries employees within group per employee

African, Female 86 211 41 1 627 18 919 African, Male 72 134 54 1 487 20 649 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Asian, Female 1 - - 19 19 350 Asian, Male 2 4 50 41 20 441 Coloured, Female 6 11 55 121 20 098 Coloured, Male - 2 - - - Total Blacks, Female 93 222 42 1 767 18 999 Total Blacks, Male 74 140 53 1 528 20 643 White, Female 1 2 50 20 20 163 White, Male - 2 - - -

ANNUAL REPORT Employees with a disability 8 18 44 164 20 526 Total 176 384 46 3 479 19 767

TABLE 3.8.2 PERFORMANCE REWARDS BY SALARY BAND FOR PERSONNEL BELOW SENIOR MANAGEMENT SERVICE FOR THE PERIOD 01 APRIL 2019 TO 31 MARCH 2020

Number of Number of % of total Total Cost Average cost beneficiaries employees within salary (R’000) per employee bands Skilled (Levels 3-5) 23 39 59 243 10 568 Highly Skilled Production (Levels 6-8) 57 93 61 871 15 284 98 Highly Skilled Supervision (Levels 9-12) 81 151 54 1 624 20 046 Other - 56 - - - 13 Contract (Levels 9-12) 1 3 33 20 19 865 Total 162 342 47 2 758 17 024

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.8.3 PERFORMANCE REWARDS BY CRITICAL OCCUPATION FOR THE PERIOD 01 APRIL 2019 TO 31 MARCH 2020

Critical occupation Beneficiary Profile Cost Number of Number of % of total Total Cost Average cost beneficiaries employees within (R’000) per employee occupation Financial Clerks & Credit Controllers 7 15 47 105 15 000 Human Resources Clerks 1 4 25 15 14 889 Human Resources & Organisational Development & Related Professionals 12 18 67 220 18 353 Messengers Porters & Deliverers 6 6 100 60 9 973 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Finance & Economics Related 23 36 64 508 22 091 Logistical Support Personnel 2 2 100 37 18 293 Other Administrat & Related Clerks & Organisers 21 79 27 323 15 387 Other Occupations 2 5 40 30 15 229 Legal Related - 1 - - - Financial & Related Professionals 8 12 67 150 18 800 Architects Town & Traffic Planners - 1 - - - Administrative Related 29 67 43 573 19 774

ANNUAL REPORT Communication & Information Related 1 6 17 18 17 962 Secretaries & Other Keyboard Operating Clerks 19 42 45 280 14 735 Library Mail & Related Clerks 6 10 60 81 13 512 Cleaners in Offices Workshops Hospitals, etc. 3 4 75 27 9 143 Human Resources Related 2 5 40 29 14 542 Trade/Industry Advisers & Other Related Profession - 1 - - - Head Of Department/Chief Executive Officer - 1 - - -

99 Language Practitioners Interpreters & Other Commun 1 4 25 15 14 669 Civil Engineering Technicians 1 1 100 15 15 112 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.8.3 PERFORMANCE REWARDS BY CRITICAL OCCUPATION FOR THE PERIOD 01 APRIL 2019 TO 31 MARCH 2020

Material-Recording And Transport Clerks 1 1 100 16 15 569 Other Administrative Policy And Related Officers 2 5 40 31 15 556 Senior Managers 12 37 32 576 48 000 Client Inform Clerks (Switch Board Reception Information Clerks) 1 1 100 12 12 071 Other Information Technology Personnel 9 9 100 174 19 385 Engineering Sciences Related 4 7 57 84 21 124 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Information Technology Related 3 4 75 98 32 614 TOTAL 176 384 46 3 479 19 767

TABLE 3.8.4 PERFORMANCE RELATED REWARDS (CASH BONUS), BY SALARY BAND FOR SENIOR MANAGEMENT SERVICE FOR THE PERIOD 01 APRIL 2019 TO 31 MARCH 2020

Salary band Beneficiary Profile Cost Total cost as a % of the total Number of Number of % of total Total Cost Average cost personnel beneficiaries employees within salary (R’000) per employee expenditure bands Band A 12 29 41 598 49 822 2

ANNUAL REPORT Band B 2 8 25 123 61 581 1 Band C - 3 - - - - Band D - 2 - - - - Total 14 42 33 721 51 502 1 100 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 100

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

3.9. FOREIGN WORKERS TABLE 3.9.1 FOREIGN WORKERS BY SALARY BAND FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Salary band 01 April 2019 31 March 2020 Change Number % of total Number % of total Number % Change Lower skilled ------

Highly skilled production (Lev. 6-8) ------

Highly skilled supervision (Lev. 9-12) ------Contract (level 9-12) ------GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Contract (level 13-16) 2 100 2 100 - - Total 2 100 2 100 - -

TABLE 3.9.2 FOREIGN WORKERS BY MAJOR OCCUPATION FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Major Occupation 01 April 2019 31 March 2020 Change Number % of Total Number % of Total Number % Change Administrative office workers 1 50 1 50 - - Professionals and managers 1 50 1 50 - -

ANNUAL REPORT TOTAL 2 100 2 100 - - 101 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

3.10. LEAVE UTILISATION TABLE 3.10.1 SICK LEAVE FOR THE PERIOD 1 JANUARY 2019 TO 31 DECEMBER 2019

Salary Band Total days % Days with Number of % of Total Average Days Estimated Medical Employees Employees Per Employee Cost (R’000) Certification Using Sick Using Sick Leave Leave Contract (Levels 13-16) 86 74 16 6 5 378 Contract (Levels 9-12) 18 100 2 1 9 50 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Contract Other 90 70 27 9 3 30 Highly skilled production (Levels 6-8) 609 77 82 29 7 892 Highly skilled supervision (Levels 9-12) 917 78 116 41 8 2 195 Senior management (Levels 13-16) 71 68 15 5 5 327 Skilled (Levels 3-5) 185 62 28 10 7 169 TOTAL 1 976 76 286 100 7 4 041

TABLE 3.10.2 DISABILITY LEAVE (TEMPORARY AND PERMANENT) FOR THE PERIOD 1 JANUARY 2019 TO 31 DECEMBER 2019

Salary Band Total days % Days with Number of % of Total Average Days Estimated Medical Employees Employees Per Employee Cost (R’000) ANNUAL REPORT Certification Using Using Disability Disability Leave Leave Lower skilled (Levels 1-2) ------Skilled (Levels 3-5) ------Highly skilled production (Levels 6-8) 213 100 1 25 213 174 396 Highly skilled supervision (Levels 9-12) 423 100 3 75 141 449 615 Senior management (Levels 13-16) ------102 Total 636 100 4 100 159 624 011 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 102

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.10.3 ANNUAL LEAVE FOR THE PERIOD 1 JANUARY 2019 TO 31 DECEMBER 2020

Salary band Total days Number of Average per taken Employees employee using annual leave Contract (Levels 13-16) 513 25 21 Contract (Levels 3-5) 8 1 8 Contract (Levels 6-8) 5 1 5 Contract (Levels 9-12) 64 5 13 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Contract Other 607 51 12 Highly skilled production (Levels 6-8) 2 326 97 24 Highly skilled supervision (Levels 9-12) 3 444 154 22 Senior management (Levels 13-16) 539 23 23 Skilled (Levels 3-5) 867 41 21 TOTAL 8 373 398 21

TABLE 3.10.4 CAPPED LEAVE FOR THE PERIOD 1 JANUARY 2019 TO 31 DECEMBER 2019

Salary band Total days of Number of Average Average

ANNUAL REPORT capped leave Employees number of capped leave taken using capped days taken per employee leave per employee as on 31 March 2019 Contract (Levels 13-16) - - - 32 Contract (Levels 9-12) - - - - Contract other - - - - Highly skilled production (Levels 6-8) 4 2 2 15 Highly skilled supervision (Levels 9-12) - - - 36 103 Senior management (Levels 13-16) - - - 19 Skilled (Levels 3-5) - - - 22 TOTAL 4 2 2 26 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.10.5 LEAVE PAYOUTS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Reason Total Amount Number of Average per (R’000) Employees Employee (R’000) Annual - discounting with resignation (work days) 418 14 29 857 Annual - gratuity: death/retirement/medical retirement 83 3 27 667 Capped - gratuity: death/retirement/medical retirement 51 2 25 500 TOTAL 552 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT 3.11. HIV/AIDS & HEALTH PROMOTION PROGRAMMES TABLE 3.11.1 STEPS TAKEN TO REDUCE THE RISK OF OCCUPATIONAL EXPOSURE

Units/categories of Employees Identified to be at High Risk of Contracting HIV & Related Key Steps Taken to Reduce the Risk Diseases (If Any) Young adults in the workplace (18 – 24)– employees on the internship programme. HIV and AIDS awareness on behaviour change

Single young adults below the age 35 years old. ■■ Providing reproductive health packs. ■■ Providing a life skills training programme ANNUAL REPORT 104 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 104

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.11.2 DETAILS OF HEALTH PROMOTION AND HIV/AIDS PROGRAMMES (TICK THE APPLICABLE BOXES AND PROVIDE THE REQUIRED INFORMATION) Question Yes No Details, If Yes 1. Has the department designated a member of the SMS to implement X Ms Fikile Madi the provisions contained in Part VI E of Chapter 01 of the Public Service Director for Human Capital Management Regulations, 2001? If so, provide her/his name and position. 2. Does the Department have a dedicated unit or has it designated specific X The annual budget allocated for the EHWP is R700 000 staff members to promote the health and well-being of its employees? If so, indicate the number of employees who are involved in this task and the annual budget that is available for this purpose.

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT 3. Has the Department introduced an Employee Assistance or Health X Financial Planning Promotion Programme for your employees? If so, indicate the key elements/ Mental health – stress management, conflict management and services of this Programme. physical wellness 4. Has the Department established (a) committee(s) as contemplated in Part X ■■ Ms. F. Madi - HCM, Chairperson VI E.5 (e) of Chapter 01 of the Public Service Regulations, 2001? If so, please ■■ Ms. M Viljoen - Consumer Affairs provide the names of the members of the committee and the stakeholder(s) ■■ Ms. C. Bodiba-Lushaba - GLB they represent. ■■ Mr. S. Hlope - Communications ■■ Mr. S. Mthembu - Legal Services ■■ Ms. S. Matseke - Security Management ■■ Ms. Gloria Mashigo - Wellness Champion representative 5. Has the Department reviewed its employment policies and practices to ■■ Wellness Management Policy ANNUAL REPORT ensure that these do not unfairly discriminate against employees on the basis X ■■ Health and Productivity Management of their HIV status? If so, list the employment policies/practices so reviewed. ■■ IV and AIDS, STI and TB Management 6. Has the Department introduced measures to protect HIV positive X ■■ Training of managers on the management of HIV disclosure employees or those perceived to be HIV positive from discrimination? If so, ■■ HIV and AIDS, STI and TB Management Policy list the key elements of these measures. 7. Does the Department encourage its employees to undergo voluntary X ■■ There were no HIV positive cases identified counselling and testing? If so, list the results that you have you achieved. 8. Has the Department developed measures/indicators to monitor & evaluate X Quarterly and monthly reports the impact of its health promotion programme? If so, list these measures/ 105 indicators.

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

3.12. LABOUR RELATIONS TABLE 3.12.1 COLLECTIVE AGREEMENTS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Subject Matter Date None N/A

Total number of collective agreements -

TABLE 3.12.2 MISCONDUCT AND DISCIPLINARY HEARINGS FINALISED FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Outcomes of Disciplinary Hearings Number % of Total Correctional counselling - - Verbal warning - Written warning 6 100 Final written warning - - Suspended without pay - - Fine - - Demotion - -

ANNUAL REPORT Dismissal - - Not guilty - - Case withdrawn - - Total 6 100

Total number of disciplinary hearings finalised 6 106 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 106

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.12.3 TYPES OF MISCONDUCT ADDRESSED AT DISCIPLINARY HEARINGS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Type of Misconduct Number % of Total Absenteeism 4 67 Insubordination 1 17 Non-compliance with PMDS Policy 1 17 Total 6 100

TABLE 3.12.4 GRIEVANCES LOGGED FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Grievances Number % of Total Number of grievances resolved 8 100 Number of grievances not resolved - - Total number of grievances lodged 8 100

TABLE 3.12.5 DISPUTES LOGGED WITH COUNCILS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Disputes Number % of Total Number of disputes upheld - - Number of disputes dismissed 2 67

ANNUAL REPORT Total number of disputes lodged 3 100

TABLE 3.12.6 STRIKE ACTIONS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Total number of persons working days lost - Total costs working days lost - Amount recovered as a result of no work no pay (R’000) -

TABLE 3.12.7 PRECAUTIONARY SUSPENSIONS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

107 Number of people suspended 1 Number of people who’s suspension exceeded 30 days 1 Average number of days suspended 818 Cost of suspension (R’000) R397 224 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

3.13. SKILLS DEVELOPMENT TABLE 3.13.1 TRAINING NEEDS IDENTIFIED FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Occupational Category Gender Number of Training Needs Identified at Start of the Reporting Period Employees as at 01 April Learnerships Skills Other Forms Total 2019 Programmes of Training & Other Short Courses Legislators, senior officials and managers Female 21 - 15 - 15 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Male 17 - 12 - 12 Professionals Female 116 - 98 5 103 Male 87 - 57 5 62 Technicians and associate professionals Female 33 - 59 10 69 Male 68 - 28 10 38 Clerks Female 23 - 8 2 10 Male 8 - 2 2 4 Service and sales workers Female - - - - - Male - - - - - ANNUAL REPORT Skilled agriculture and fishery workers Female - - - - - Male - - - - - Craft and related trades workers Female - - - - - Male - - - - - Plant and machine operators and assemblers Female - - - - - Male - - - - Elementary occupations Female 7 32 32 1 33 108 Male 4 28 28 1 29 Sub Total Female 200 32 212 18 230 Male 184 28 127 18 145 Total 384 50 339 36 375 3.13. SKILLS DEVELOPMENT TABLE 3.13.1 TRAINING NEEDS IDENTIFIED FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Occupational Category Gender Number of Training Needs Identified at Start of the Reporting Period Employees as at 01 April Learnerships Skills Other Forms Total 2019 Programmes of Training & Other Short Courses Legislators, senior officials and managers Female 21 - 15 - 15 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Male 17 - 12 - 12 Professionals Female 116 - 98 5 103 Male 87 - 57 5 62 Technicians and associate professionals Female 33 - 59 10 69 Male 68 - 28 10 38 Clerks Female 23 - 8 2 10 Male 8 - 2 2 4 Service and sales workers Female - - - - - Male - - - - - ANNUAL REPORT Skilled agriculture and fishery workers Female - - - - - Male - - - - - Craft and related trades workers Female - - - - - Male - - - - - Plant and machine operators and assemblers Female - - - - - Male - - - - Elementary occupations Female 7 32 32 1 33 108 Male 4 28 28 1 29 Sub Total Female 200 32 212 18 230 Male 184 28 127 18 145 Total 384 50 339 36 375

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.13.2 TRAINING PROVIDED FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Occupational Category Gender Number of Training Provided within the Reporting Period Employees as at 01 April Learnerships Skills Other Forms Total 2019 Programmes of Training and Other Short Courses Legislators, senior officials and managers Female 21 - 12 - 12 Male 17 - 10 - 10 Professionals Female 116 - 56 3 59 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Male 87 - 25 5 30 Technicians and associate professionals Female 33 - 4 5 9 Male 68 - 15 4 19 Clerks Female 23 - 2 2 4 Male 8 - 1 1 2 Service and sales workers Female - - - - - Male - - - - - Skilled agriculture and fishery workers Female - - - - - Male - - - - - ANNUAL REPORT Craft and related trades workers Female - - - - - Male - - - - - Plant and machine operators and assemblers Female - - - - - Male - - - - - Elementary occupations Female 7 32 2 1 3 Male 4 28 1 1 2 Sub Total Female 200 32 76 11 87 109 Male 184 28 52 11 63 Total 384 50 128 22 150 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

3.14. INJURY ON DUTY TABLE 3.14.1 INJURY ON DUTY FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Nature of Injury on Duty Number % of Total Required basic medical attention only 4 100 Temporary total disablement - - Permanent disablement - - Fatal - - GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Total 4 100

3.15. UTILISATION OF CONSULTANTS TABLE 3.15.1 REPORT ON CONSULTANT APPOINTMENTS USING APPROPRIATED FUNDS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Project Title Total Number of Consultants that Worked Duration Contract Value in on Project (Work Days) Rand N/A

Total Number of Projects Total Individual Consultants Total Duration Total Contract Value in Rand Work Days ANNUAL REPORT N/A

TABLE 3.15.2 ANALYSIS OF CONSULTANT APPOINTMENTS USING APPROPRIATED FUNDS, IN TERMS OF HISTORICALLY DISADVANTAGED INDIVIDUALS (HDIS) FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Project Title Percentage Ownership by HDI Groups Percentage Management by HDI Groups Number of Consultants from HDI Groups that Work on the Project N/A

TABLE 3.15.3 REPORT ON CONSULTANT APPOINTMENTS USING DONOR FUNDS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020 110 Project Title Total Number of Consultants that Worked Duration Donor and Contract Value in Rands on Project (Work Days) N/A 3.14. INJURY ON DUTY TABLE 3.14.1 INJURY ON DUTY FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Nature of Injury on Duty Number % of Total Required basic medical attention only 4 100 Temporary total disablement - - Permanent disablement - - Fatal - - GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Total 4 100

3.15. UTILISATION OF CONSULTANTS TABLE 3.15.1 REPORT ON CONSULTANT APPOINTMENTS USING APPROPRIATED FUNDS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Project Title Total Number of Consultants that Worked Duration Contract Value in on Project (Work Days) Rand N/A

Total Number of Projects Total Individual Consultants Total Duration Total Contract Value in Rand Work Days ANNUAL REPORT N/A

TABLE 3.15.2 ANALYSIS OF CONSULTANT APPOINTMENTS USING APPROPRIATED FUNDS, IN TERMS OF HISTORICALLY DISADVANTAGED INDIVIDUALS (HDIS) FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Project Title Percentage Ownership by HDI Groups Percentage Management by HDI Groups Number of Consultants from HDI Groups that Work on the Project N/A

TABLE 3.15.3 REPORT ON CONSULTANT APPOINTMENTS USING DONOR FUNDS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020 110 Project Title Total Number of Consultants that Worked Duration Donor and Contract Value in Rands on Project (Work Days) N/A

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D HUMAN RESOURCE MANAGEMENT

Total Number of Projects Total Individual Consultants Total Duration Total Contract Value in Rands Work Days N/A

TABLE 3.15.4 ANALYSIS OF CONSULTANT APPOINTMENTS USING DONOR FUNDS, IN TERMS OF HISTORICALLY DISADVANTAGED INDIVIDUALS (HDIS) FOR THE PERIOD 01 APRIL 20Y19 AND 31 MARCH 2020

Project Title Percentage Ownership by HDI Groups Percentage Management by HDI Groups Number of consultants from HDI Groups that Worked on the Project N/A GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT 3.16. SEVERANCE PACKAGES TABLE 3.16.1 GRANTING OF EMPLOYEE INITIATED SEVERANCE PACKAGES FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Salary Band Number of Number of Number of Number of Applications Applications Applications Packages Received Referred to Supported by Approved by the MPSA MPSA Department Lower skilled (Levels 1-2) - - - - Skilled (Levels 3-5) - - - - Highly skilled production (Levels 6-8) - - - -

ANNUAL REPORT Highly skilled supervision(Levels 9-12) - - - - Senior management (Levels 13-16) - - - - Total - - - - 111 GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

GAUTENG LIQUOR BOARD 3.1. PERSONNEL RELATED EXPENDITURE The following tables summarises the final audited personnel related expenditure by programme and by salary bands. In particular, it provides an indication ofthe following:

■■ The amount spent on personnel ■■ The amount spent on salaries, overtime, homeowner’s allowances and medical aid.

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT TABLE 3.1.2 PERSONNEL COSTS BY SALARY BAND FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Salary Band Personnel % of Total No. of Average Expenditure Personnel Employees Personnel (R’000) Cost Cost Per Employee (R’000) Skilled (Levels 3-5) 5 606 12 20 280 300 Highly skilled production (Levels 6-8) 9 317 20 23 405 087 Highly skilled supervision (Levels 9-12) 24 933 54 42 593 643 Senior management (Levels >= 13) 3 951 9 3 1 317 000 Contract (Levels >= 13) 776 2 - - ANNUAL REPORT Contract (other) 254 1 4 63 500 Periodical remuneration 996 2 20 49 800 TOTAL 45 833 100 112 409 223 112 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 112

GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.1.3 SALARIES, OVERTIME, HOME OWNERS ALLOWANCE AND MEDICAL AID BY PROGRAMME FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Programme Salaries Overtime Home Owners Allowance Medical Aid

Amount Salaries Amount Overtime Amount HOA as a % Amount Medical Aid (R’000 as a % of (R’000) as a % of (R’000) of Personnel (R’000) as a % of Personnel Personnel Costs Personnel Costs Costs Costs Compliance 15 057 84 - - 389 2 784 4 Liquor Affairs Secretariat 7 951 76 - - 211 2 515 5

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Liquor Affairs 14 173 82 - - 472 3 1 049 6 TOTAL 37 182 81 - - 1 072 2 2 348 5

TABLE 3.1.4 SALARIES, OVERTIME, HOME OWNERS ALLOWANCE AND MEDICAL AID BY SALARY BAND FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Salary band Salaries Overtime Home Owners Allowance Medical Aid

Amount Salaries Amount Overtime Amount HOA as a % Amount Medical aid (R’000 as a % of (R’000) as a % of (R’000) of Personnel (R’000) as a % of personnel personnel Costs Personnel costs costs Costs Skilled (Levels 3-5) 4 249 76 - - 293 5 566 10

ANNUAL REPORT Highly skilled production (Levels 6-8) 7 430 80 - - 320 3 695 8 Highly skilled supervision (Levels 9-12) 20 886 84 - - 458 2 1 086 4 Senior management (Levels >= 13) 3 623 92 ------Contract (Levels >= 13) 708 91 ------Contract (other) 254 100 ------Periodical remuneration 31 3 ------TOTAL 37 182 81 - - 1 072 2 2 348 5 113 GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

3.2. EMPLOYMENT AND VACANCIES The tables in this section summarise the position with regard to employment and vacancies.

The following tables summarise the number of posts on the establishment, the number of employees, the vacancy rate, and whether there are any staff that are additional to the establishment.

This information is presented in terms of three key variables:

■■ programme

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ■■ salary band ■■ critical occupations (see definition in notes below).

Departments have identified critical occupations that need to be monitored. In terms of current regulations, it is possible to create a post on the establishment that can be occupied by more than one employee. Therefore, the vacancy rate reflects the percentage of posts that are not filled.

TABLE 3.2.1 EMPLOYMENT AND VACANCIES BY PROGRAMME AS ON 31 MARCH 2020

Programme Number of Number of Vacancy Rate Number of Posts on Posts Filled Employees Approved Additional Establishment to the Establishment

ANNUAL REPORT Compliance (permanent) 34 32 6 - Liquor Affairs Secretariat (permanent) 22 22 - 3 Liquor Affairs (permanent) 39 38 3 1 TOTAL 95 92 3 4 114 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 114

GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.2.2 EMPLOYMENT AND VACANCIES BY SALARY BAND AS ON 31 MARCH 2020

Salary Band Number of Number of Vacancy Rate Number of Posts on Posts Filled employees Approved Additional Establishment to the Establishment Skilled (Levels 3-5, permanent) 20 20 - -

3 highly skilled production (Levels 6-8, permanent) 23 23 - - Highly skilled supervision (Levels 9-12, permanent) 44 42 5 -

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Senior management (Levels >= 13, permanent) 4 3 25 - Other (permanent) 4 4 - 4 TOTAL 95 92 3 4 ANNUAL REPORT 115 GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.2.3 EMPLOYMENT AND VACANCIES BY CRITICAL OCCUPATIONS AS ON 31 MARCH 2020

Critical Occupation Number of Number of Vacancy Rate Number of Posts on Posts Filled Employees Approved Additional Establishment to the Establishment Administrative related (permanent) 20 19 5 - Appraisers-valuers & related professionals ( permanent) 2 2 - - Finance and economics related ( permanent) 1 1 - - GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Financial clerks & credit controllers ( permanent) 9 9 - 2 Human resources & organisational development & related Professionals ( permanent) 1 1 - - Human resources related (permanent) 2 2 - - Library mail and related clerks (permanent) 1 1 - - Other administrative & related clerks and organisers ( permanent) 49 48 2 2 Other occupations (permanent) 2 2 - - Regulatory inspectors (permanent) 1 1 - - Secretaries & other keyboard operating clerks (permanent) 5 5 - -

ANNUAL REPORT Senior managers (permanent) 2 1 50 - TOTAL 95 92 3 4 116 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 116

GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

3.3. FILLING OF SMS POSTS TABLE 3.3.1 SMS POST INFORMATION AS ON 31 MARCH 2020

SMS Level Total Number Total Number % of SMS Total Number % of SMS of Funded of SMS Posts Posts Filled of SMS Posts Posts Vacant SMS Posts Filled Vacant Director-General/ Head of Department - - - - - Salary Level 16 - - - - - Salary Level 15 - - - - -

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Salary Level 14 1 1 100 - - Salary Level 13 3 2 67 1 33 Total 4 3 75 1 25

TABLE 3.3.2 SMS POST INFORMATION AS ON 30 SEPTEMBER 2019

SMS Level Total Number Total Number % of SMS Total Number % of SMS of Funded of SMS Posts Posts Filled of SMS Posts Posts Vacant SMS Posts Filled Vacant Director-General/ Head of Department - - - - - Salary Level 16 - - - - -

ANNUAL REPORT Salary Level 15 - - - - - Salary Level 14 1 1 100 - - Salary Level 13 3 3 100 - - Total 4 4 100 - - 117 GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.3.3 ADVERTISING AND FILLING OF SMS POSTS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

SMS Level Advertising Filling of Posts Number of Number of Number of Vacancies Vacancies Vacancies per per Level per Level not Level Filled Advertised Filled in 06 in 06 Months in 06 Months Months But of Becoming of Becoming Filled in 12 Vacant Vacant Months

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Director-General/ Head of Department - - - Salary Level 16 - - - Salary Level 15 - - - Salary Level 14 - - - Salary Level 13 1 - - Total 1 - -

TABLE 3.3.4 REASONS FOR NOT HAVING COMPLIED WITH THE FILLING OF FUNDED VACANT SMS - ADVERTISED WITHIN 06 MONTHS AND FILLED WITHIN 12 MONTHS AFTER BECOMING VACANT FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Reasons for Vacancies not Advertised within 06 Months ANNUAL REPORT N/A

Reasons for Vacancies not Filled within 12 Months N/A

TABLE 3.3.5 DISCIPLINARY STEPS TAKEN FOR NOT COMPLYING WITH THE PRESCRIBED TIMEFRAMES FOR FILLING SMS POSTS WITHIN 12 MONTHS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Reasons for Vacancies not Advertised within 06 Months 118 N/A

Reasons for Vacancies not Filled within 06 Months N/A TABLE 3.3.3 ADVERTISING AND FILLING OF SMS POSTS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

SMS Level Advertising Filling of Posts Number of Number of Number of Vacancies Vacancies Vacancies per per Level per Level not Level Filled Advertised Filled in 06 in 06 Months in 06 Months Months But of Becoming of Becoming Filled in 12 Vacant Vacant Months

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Director-General/ Head of Department - - - Salary Level 16 - - - Salary Level 15 - - - Salary Level 14 - - - Salary Level 13 1 - - Total 1 - -

TABLE 3.3.4 REASONS FOR NOT HAVING COMPLIED WITH THE FILLING OF FUNDED VACANT SMS - ADVERTISED WITHIN 06 MONTHS AND FILLED WITHIN 12 MONTHS AFTER BECOMING VACANT FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Reasons for Vacancies not Advertised within 06 Months ANNUAL REPORT N/A

Reasons for Vacancies not Filled within 12 Months N/A

TABLE 3.3.5 DISCIPLINARY STEPS TAKEN FOR NOT COMPLYING WITH THE PRESCRIBED TIMEFRAMES FOR FILLING SMS POSTS WITHIN 12 MONTHS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Reasons for Vacancies not Advertised within 06 Months 118 N/A

Reasons for Vacancies not Filled within 06 Months N/A

GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

3.4. JOB EVALUATION TABLE 3.4.1 JOB EVALUATION BY SALARY BAND FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Salary Band Number of Number % Of Posts Posts Upgraded Posts Downgraded Posts on of Jobs Evaluated by Approved Evaluated Salary Bands Number % of Posts Number % of Posts Establishment Evaluated Evaluated Skilled (Levels 3-5) 20 ------Highly skilled production (Levels 6-8) 23 ------Highly skilled supervision (Levels 9-12) 44 ------GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Senior Management Service Band A 3 ------Senior Management Service (Band B) 1 ------Other 4 ------Total 95 ------

TABLE 3.4.2 PROFILE OF EMPLOYEES WHOSE POSITIONS WERE UPGRADED DUE TO THEIR POSTS BEING UPGRADED FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Gender African Asian Coloured White Total Female - - - - - Male - - - - - ANNUAL REPORT Total - - - - -

Employees with a disability None 119 GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.4.3 EMPLOYEES WITH SALARY LEVELS HIGHER THAN THOSE DETERMINED BY JOB EVALUATION BY OCCUPATION FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Occupation Number of Employees Job Evaluation Level Remuneration Level Reason for Deviation ------Total number of employees whose salaries exceeded the level determined by job evaluation - GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Percentage of total employed N/A

The following table summarises the beneficiaries of the above in terms of race, gender, and disability.

TABLE 3.4.4 PROFILE OF EMPLOYEES WHO HAVE SALARY LEVELS HIGHER THAN THOSE DETERMINED BY JOB EVALUATION FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Gender African Asian Coloured White Total Female - - - - - Male - - - - - Total - - - - -

ANNUAL REPORT Employees with a disability - - - - -

Total number of employees whose salaries exceeded the grades determine by job evaluation None 120 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 120

GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

3.5. EMPLOYMENT CHANGES TABLE 3.5.1 ANNUAL TURNOVER RATES BY SALARY BAND FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Salary Band Number of Appointments Terminations Turnover Rate Employees and Transfers and Transfers at Beginning into the out of the of Period-01 Department Department April 2019 Skilled (Levels 3-5) Permanent 20 - - - Highly skilled production (Levels 6-8, permanent) 23 - - -

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Highly skilled supervision (Levels 9-12, permanent) 43 - 1 2 Senior Management Service (Band A, permanent) 2 - - - Senior Management Service (Band B, permanent) 1 - - - Other (permanent) 4 - 1 25 Contract (Band A, permanent) 1 - 1 100 TOTAL 94 - 3 3 ANNUAL REPORT 121 GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.5.2 ANNUAL TURNOVER RATES BY CRITICAL OCCUPATION FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Critical Occupation Number of Appointments Terminations Turnover Rate Employees at and Transfers and Transfers Beginning of into the out of the Period- April Department Department 2019 Administrative related (permanent) 19 - - - Appraisers-valuers & related professionals( permanent) 2 - - - Finance & economics related (permanent) 1 - - - GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Financial clerks and credit controllers (permanent) 9 - - - Human resources & organisational development & related professionals (permanent) 1 - - - Human resources related permanent 2 - - - Library mail & related clerks (permanent) 1 - - - Other administration & related clerks & organisers (permanent) 49 - 2 4 Other occupations (permanent) 2 - - - Regulatory inspectors (permanent) 1 - - - Secretaries & other keyboard operating clerks (permanent) 5 - - -

ANNUAL REPORT Senior managers (permanent) 2 - 1 50 TOTAL 94 - 3 3 122 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 122

GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.5.3 REASONS WHY STAFF LEFT THE DEPARTMENT FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Termination Type Number % of Total Resignations Death - - Resignation 3 100 Expiry of contract - - Dismissal – operational changes - - Dismissal – misconduct - -

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Dismissal – inefficiency - - Discharged due to ill-health - - Retirement - - Transfer to other Public Service departments - - Other - - Total 3 100 Total number of employees who left as a % of total employment 3% ANNUAL REPORT 123 GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.5.4 PROMOTIONS BY CRITICAL OCCUPATION FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Occupation Employees 01 Promotions Salary Level Progressions Notch April 2019 to Another Promotions to Another Progression Salary Level as a % of Notch within a as a % of Employees by Salary Level Employees by Occupation Occupation Administrative related 19 - - 14 74 Appraisers-valuers & related professionals 2 - - 2 100 Finance & economics related 1 - - - - GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Financial clerks & credit controllers 9 - - 4 44 Human resources & organisational development & related professsionals 1 - - 1 100 Human resources related 2 - - 1 50 Library mail & related clerks 1 - - 1 100 Other administrational & related clerks & organisers 49 - - 38 78 Other occupations 2 - - 1 50 Regulatory inspectors 1 - - 1 100 Secretaries & other keyboard operating clerks 5 - - 3 60

ANNUAL REPORT Senior managers 2 - - - - TOTAL 94 - - 66 70 124 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 124

GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.5.5 PROMOTIONS BY SALARY BAND FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Salary Band Employees 01 Promotions Salary Bands Progressions Notch April 2019 to Another Promotions to Another Progression Salary Level as a % of Notch within a as a % of Employees by Salary Level Employees by Salary Level Salary Bands Skilled (Levels 3-5), Permanent 20 - - - 90 Highly skilled production (Levels 6-8, permanent) 23 - - - 83 Highly skilled supervision (Levels 9-12, permanent) 43 - - - 67 Senior management (Levels >= 13, permanent) 3 - - - - GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Other (permanent) 4 - - - - Contract (Levels >= 13, permanent) 1 - - - - TOTAL 94 - - - 70

3.6. EMPLOYMENT EQUITY TABLE 3.6.1 TOTAL NUMBER OF EMPLOYEES (INCLUDING EMPLOYEES WITH DISABILITIES) IN EACH OF THE FOLLOWING OCCUPATIONAL CATEGORIES AS ON 31 MARCH 2020

Occupational Category Male Female Total African Coloured Indian White African Coloured Indian White Legislators, senior officials and managers - 1 ------1 ANNUAL REPORT Professionals 2 - - - 2 - - - 4 Technicians and associate professionals 10 - 1 - 10 - - - 21 Clerks 23 2 - - 37 1 - - 63 Service and sales workers 1 ------1 Labourers and related workers - - - - 2 - - - 2 Skilled agriculture and fishery workers ------0 Craft and related trades workers ------Plant and machine operators and assemblers ------125 Elementary occupations ------Total 36 3 1 - 51 1 - - 92 Employees with disabilities ------GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.6.2 TOTAL NUMBER OF EMPLOYEES (INCLUDING EMPLOYEES WITH DISABILITIES) IN EACH OF THE FOLLOWING OCCUPATIONAL BANDS AS ON 31 MARCH 2020

Occupational Band Male Female Total African Coloured Indian White African Coloured Indian White Senior officials and managers - 1 ------1 Professionals 2 - - - 2 - - - 4

Technicians and associate professionals 10 - 1 - 10 - - - 21 Clerks 23 2 - - 37 1 - - 63 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Service shop and market sales workers 1 ------1 Labourers and related workers - - - - 2 - - - 2 TOTAL 36 3 1 - 51 1 - - 92

TABLE 3.6.3 RECRUITMENT FOR THE PERIOD 01 APRIL 2019 TO 31 MARCH 2020

Occupational Band Male Female Total African Coloured Indian White African Coloured Indian White Top management ------Senior management ------ANNUAL REPORT Professionally qualified and experienced specialists and mid-management ------Skilled technical and academically qualified workers, junior management, supervisors, foreman and superintendents ------Semi-skilled and discretionary decision making ------Unskilled and defined decision making ------Total ------

126 Employees with disabilities ------GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 126

GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.6.4 PROMOTIONS FOR THE PERIOD 01 APRIL 2019 TO 31 MARCH 2020

Occupational Band Male Female Total African Coloured Indian White African Coloured Indian White Professionally qualified and experienced specialists and mid-management (Permanent) 14 - - - 15 - - - 29 Skilled technical and academically qualified workers, junior management, supervisors, foremen (permanent) 4 1 - - 14 - - - 19 Semi-skilled and discretionary decision making (permanent) 4 - 1 - 12 1 - - 18 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT TOTAL 22 1 1 - 41 1 - - 66

TABLE 3.6.5 TERMINATIONS FOR THE PERIOD 01 APRIL 2019 TO 31 MARCH 2020 Occupational band Male Female Total African Coloured Indian White African Coloured Indian White Professionally qualified and experienced specialists and mid-management (permanent) 1 ------1 Not available (permanent) - - - - 1 - - - 1 Contract (Senior management, permanent) - - - - 1 - - - 1 TOTAL 1 - - - 2 - - - 3 ANNUAL REPORT 127 GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.6.6 DISCIPLINARY ACTION FOR THE PERIOD 01 APRIL 2019 TO 31 MARCH 2020

Disciplinary Action Male Female Total African Coloured Indian White African Coloured Indian White N/A ------

TABLE 3.6.7 SKILLS DEVELOPMENT FOR THE PERIOD 01 APRIL 2019 TO 31 MARCH 2020

Occupational Category Male Female Total

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT African Coloured Indian White African Coloured Indian White Legislators, senior officials 1 1 - - 1 - - - 3 and managers Professionals 10 - - - 13 1 - - 24 Technicians and associate 9 - - - 12 1 - - 22 professionals Clerks 9 1 - - 4 - - - 14 Service and sales workers ------Skilled agriculture and ------fishery workers

ANNUAL REPORT Craft and related trades ------workers Plant and machine 1 ------`1 operators and assemblers Elementary occupations ------Total 30 2 - - 30 2 - - 64 Employees with ------disabilities 128 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 128

GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

3.7. SIGNING OF PERFORMANCE AGREEMENTS BY SMS MEMBERS TABLE 3.7.1 SIGNING OF PERFORMANCE AGREEMENTS BY SMS MEMBERS AS ON 31 JULY 2019

SMS Level Total Number Total Number Total Number Signed of Funded of SMS of Signed Performance SMS Posts Members Performance Agreements Agreements a % of Total Number of SMS Members Director-General/ Head of Department - - - - Salary Level 16 - - - - GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Salary Level 15 - - - - Salary Level 14 1 1 1 100 Salary Level 13 3 2 2 100 Total 4 3 3 100

TABLE 3.7.2 REASONS FOR NOT HAVING CONCLUDED PERFORMANCE AGREEMENTS FOR ALL SMS MEMBERS AS ON 31 JULY 2019

Reasons N/A

ANNUAL REPORT TABLE 3.7.3 DISCIPLINARY STEPS TAKEN AGAINST SMS MEMBERS FOR NOT HAVING CONCLUDED PERFORMANCE AGREEMENTS AS ON 31 JULY 2019

Reasons N/A 129 GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

3.8. PERFORMANCE REWARDS TABLE 3.8.1 PERFORMANCE REWARDS BY RACE, GENDER AND DISABILITY FOR THE PERIOD 01 APRIL 2019 TO 31 MARCH 2020

Race and Gender Beneficiary Profile Cost Number of Number of % of Total Cost (R’000) Average Cost Beneficiaries Employees within Group Per Employee

African female 25 51 49 348 13 934 African male 11 36 31 184 16 696 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Asian female - - - - - Asian male 1 1 100 10 9 732 Coloured female 1 1 100 11 10 641 Coloured male - 3 - - - Total black females 26 52 50 359 13 808 Total black males 12 40 30 193 16 115 White female - - - - - White male - - - - - ANNUAL REPORT TABLE 3.8.2 PERFORMANCE REWARDS BY SALARY BAND FOR PERSONNEL BELOW SENIOR MANAGEMENT SERVICE FOR THE PERIOD 01 APRIL 2019 TO 31 MARCH 2020

Number of Number of % of Total Total Cost Average Cost Beneficiaries Employees Within Salary (R’000) Per Employee Bands Skilled (Levels 3-5) 11 20 55 115 10 430 Highly skilled production (Levels 6-8) 13 23 57 185 14 261 Highly skilled supervision (Levels 9-12) 14 42 33 252 18 018 Other - 4 - - - 130 TOTAL 38 89 43 552 14 536 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 130

GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.8.3 PERFORMANCE REWARDS BY CRITICAL OCCUPATION FOR THE PERIOD 01 APRIL 2019 TO 31 MARCH 2020

Critical Occupation Beneficiary Profile Cost Number of Number of % of Total Total Cost Average Cost Beneficiaries Employees within (R’000) Per Employee Occupation Financial clerks & credit controllers 4 9 44 65 16 252 Human resources & organisational developm & related professionals - 1 - - - Finance and economics related - 1 - - - Other administration & related clerks & organisers 16 48 33 203 12 695 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Appraisers-valuers & related professionals - 2 - - - Other occupations 1 2 50 10 10 015 Administrative related 13 19 68 223 17 116 Secretaries & other keyboard operating clerks 2 5 40 25 12 552 Library mail & related clerks 1 1 100 11 10 800 Human resources related 1 2 50 16 15 833 Regulatory inspectors - 1 - - - Senior managers - 1 - - -

ANNUAL REPORT Total 38 92 41 552 14 536

TABLE 3.8.4 PERFORMANCE RELATED REWARDS (CASH BONUS), BY SALARY BAND FOR SENIOR MANAGEMENT SERVICE FOR THE PERIOD 01 APRIL 2018 TO 31 MARCH 2019

Salary Band Beneficiary Profile Cost Total Cost as a % of the Total Number of Number of % of Total Total Cost Average Cost Personnel Beneficiaries Employees within Salary (R’000) Per Employee Expenditure Bands Band A - 2 - - - - Band B - 1 - - - - 131 Total - 3 - - - - GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

3.9. FOREIGN WORKERS The tables below summarise the employment of foreign nationals in the department in terms of salary band and major occupation.

TABLE 3.9.1 FOREIGN WORKERS BY SALARY BAND FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Salary band 01 April 2019 31 March 2020 Change Number % of total Number % of total Number % Change Lower skilled ------

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Highly skilled production (Level 6-8) ------Highly skilled supervision (Level 9-12) ------Contract (level 9-12) ------Contract (level 13-16) ------Total ------

TABLE 3.9.2 FOREIGN WORKERS BY MAJOR OCCUPATION FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Major Occupation 01 April 2019 31 March 2020 Change

Number % of Total Number % of Total Number % Change

ANNUAL REPORT ------132 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 132

GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

3.10. LEAVE UTILISATION The Public Service Commission identified the need for careful monitoring of sick leave within the Public Service. The following tables provide an indication of the use of sick leave and disability leave. In both cases, the estimated cost of the leave is also provided.

TABLE 3.10.1 SICK LEAVE FOR THE PERIOD 1 JANUARY 2019 TO 31 DECEMBER 2019

Salary Band Total days % Days with Number of % of total Average Days Estimated Medical Employees Employees Per Employee Cost (R’000) Certification Using Sick Using Sick Leave Leave Contract (Levels 13-16) 6 100 1 2 6 23 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Contract other 9 100 2 3 5 3 Highly skilled production (Levels 6-8) 115 86 16 28 7 174 Highly skilled supervision (Levels 9-12) 149 62 24 41 6 360 Senior management (Levels 13-16) 23 57 3 5 8 112 Skilled (Levels 3-5) 83 75 12 21 7 84 TOTAL 385 73 58 100 7 756

TABLE 3.10.2 DISABILITY LEAVE (TEMPORARY AND PERMANENT) FOR THE PERIOD 01 JANUARY 2019 TO 31 DECEMBER 2019

Salary Band Total Days % Days with Number of % of Total Average Days Estimated

ANNUAL REPORT Medical Employees Employees Per Employee Cost (R’000) Certification Using Using Disability Disability Leave Leave Lower skilled (Levels 1-2) ------Skilled (Levels 3-5) ------Highly skilled production (Levels 6-8) ------Highly skilled supervision (Levels 9-12) ------Senior management (Levels 13-16) ------133 Total ------

The table below summarises the utilisation of annual leave. The wage agreement concluded with trade unions in the PSCBC in 2000 requires management of annual leave to prevent high levels of accrued leave being paid at the time of termination of service. GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.10.3 ANNUAL LEAVE FOR THE PERIOD 1 JANUARY 2019 TO 31 DECEMBER 2020

Salary Band Total days Number of Average Per taken Employees Employee Using Annual Leave Contract (Levels 13-16) 29 1 29 Contract other 79 5 16 Highly skilled production (Levels 6-8) 585 23 25

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Highly skilled supervision (Levels 9-12) 963 43 22 Senior management (Levels 13-16) 89 3 30 Skilled (Levels 3-5) 426 20 21 TOTAL 2 171 95 23

TABLE 3.10.4 CAPPED LEAVE FOR THE PERIOD 1 JANUARY 2019 TO 31 DECEMBER 2019

Salary Band Total Days of Number of Average Average Capped Leave Employees Number of Capped Leave Taken Using Capped Days Taken Per Employee Leave Per Employee as at 31 March 2019 ANNUAL REPORT Contract other - - - - Highly skilled production (Levels 6-8) - - 21 21 Highly skilled supervision (Levels 9-12) - - 25 25 Senior management (Levels 13-16) - - 48 48 Skilled (Levels 3-5) - - 7 7 TOTAL - - 22 22

134 TABLE 3.10.5 LEAVE PAYOUTS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Reason Total amount Number of Average Per (R’000) Employees Employee (R’000)

N/A TABLE 3.10.3 ANNUAL LEAVE FOR THE PERIOD 1 JANUARY 2019 TO 31 DECEMBER 2020

Salary Band Total days Number of Average Per taken Employees Employee Using Annual Leave Contract (Levels 13-16) 29 1 29 Contract other 79 5 16 Highly skilled production (Levels 6-8) 585 23 25

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Highly skilled supervision (Levels 9-12) 963 43 22 Senior management (Levels 13-16) 89 3 30 Skilled (Levels 3-5) 426 20 21 TOTAL 2 171 95 23

TABLE 3.10.4 CAPPED LEAVE FOR THE PERIOD 1 JANUARY 2019 TO 31 DECEMBER 2019

Salary Band Total Days of Number of Average Average Capped Leave Employees Number of Capped Leave Taken Using Capped Days Taken Per Employee Leave Per Employee as at 31 March 2019 ANNUAL REPORT Contract other - - - - Highly skilled production (Levels 6-8) - - 21 21 Highly skilled supervision (Levels 9-12) - - 25 25 Senior management (Levels 13-16) - - 48 48 Skilled (Levels 3-5) - - 7 7 TOTAL - - 22 22

134 TABLE 3.10.5 LEAVE PAYOUTS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Reason Total amount Number of Average Per (R’000) Employees Employee (R’000)

N/A

GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

3.11. HIV/AIDS & HEALTH PROMOTION PROGRAMMES TABLE 3.11.1 STEPS TAKEN TO REDUCE THE RISK OF OCCUPATIONAL EXPOSURE

Units/Categories of Employees Identified to be at High Risk of Contracting HIV & Related Key Steps Taken to Reduce the Risk Diseases (If Any) Young adults in the workplace (18 – 24) – employees on the Internship programme. HIV and AIDS awareness on behaviour change Single young adults below the age 35 years old. ■■ Providing reproductive health packs. ■■ Providing Life Skills Training programme GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 135 GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.11.2 DETAILS OF HEALTH PROMOTION AND HIV/AIDS PROGRAMMES (TICK THE APPLICABLE BOXES AND PROVIDE THE REQUIRED INFORMATION)

Question Yes No Details, If Yes 1. Has the department designated a member of the SMS to implement the provisions X Ms Fikile Madi contained in Part VI E of Chapter 01 of the Public Service Regulations, 2001? If so, Director for Human Capital Management provide her/his name and position.

2. Does the department have a dedicated unit or has it designated specific staff X Annual budget allocated for the EHWP is R700 000 members to promote the health and well-being of your employees? If so, indicate the number of employees who are involved in this task and the annual budget that

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT is available for this purpose.

3. Has the department introduced an Employee Assistance or Health Promotion X ■■ Financial Planning Programme for its employees? If so, indicate the key elements/services of this ■■ Mental Health – Stress Management, Programme. ■■ Conflict Management ■■ Physical Wellness 4. Has the department established (a) committee(s) as contemplated in Part VI E.5 (e) X ■■ Ms. F. Madi - HCM, Chairperson of Chapter 1 of the Public Service Regulations, 2001? If so, please provide the names ■■ Ms. M Viljoen - Consumer Affairs of the members of the committee and the stakeholder(s) that they represent. ■■ Ms. C. Bodiba-Lushaba - GLB ■■ Mr. S. Hlophe - Communications ■■ Mr. S. Mthembu - Legal Services ■■ Ms. S. Matseke - Security Management ANNUAL REPORT ■■ Ms. Gloria Mashigo - Wellness Champion representative 5. Has the department reviewed its employment policies and practices to ensure X ■■ Wellness Management Policy that these do not unfairly discriminate against employees on the basis of their HIV ■■ Health and Productivity Management status? If so, list the employment policies/practices so reviewed. ■■ HIV and AIDS, STI and TB Management 6. Has the department introduced measures to protect HIV-positive employees or X ■■ Training of managers on managing HIV disclosure those perceived to be HIV-positive from discrimination? If so, list the key elements ■■ HIV and AIDS, STI and TB Management Policy of these measures. 7. Does the department encourage its employees to undergo voluntary counselling X There were no HIV positive cases identified and testing? If so, list the results that you have you achieved. 136 8. Has the department developed measures/indicators to monitor and evaluate the X Quarterly and monthly reports impact of its health promotion programme? If so, list these measures/indicators.

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 136

GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

3.12. LABOUR RELATIONS TABLE 3.12.1 COLLECTIVE AGREEMENTS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Subject matter Date NONE N/A

Total number of Collective agreements None

TABLE 3.12.2 MISCONDUCT AND DISCIPLINARY HEARINGS FINALISED FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Outcomes of disciplinary hearings Number % of total Correctional counselling - - Verbal warning - Written warning - - Final written warning - - Suspended without pay - - Fine - - Demotion - -

Dismissal 2 12% ANNUAL REPORT Not guilty - - Case withdrawn 3 18% Total 17 100%

Total number of Disciplinary hearings finalised 5 137 GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.12.3 TYPES OF MISCONDUCT ADDRESSED AT DISCIPLINARY HEARINGS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Type of misconduct Number % of total Vetting 2 12% Dishonesty 7 41% Non -Compliance with PMDS Policy 4 24% Fraud 4 24% Total 17 100% GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT TABLE 3.12.4 GRIEVANCES LOGGED FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Grievances Number % of Total Number of grievances resolved 4 100 Number of grievances not resolved - - Total number of grievances lodged 4 100

TABLE 3.12.5 DISPUTES LOGGED WITH COUNCILS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Disputes Number % of Total

ANNUAL REPORT Number of disputes upheld - - Number of disputes dismissed 4 100 Total number of disputes lodged 4 100

TABLE 3.12.6 STRIKE ACTIONS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Total number of persons working days lost - Total costs working days lost - Amount recovered as a result of no work no pay (R’000) - 138 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 138

GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.12.7 PRECAUTIONARY SUSPENSIONS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Number of people suspended 1 Number of people whose suspension exceeded 30 days 1 Average number of days suspended 817 Cost of suspension (R’000) R564 144 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 139 GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

3.13. SKILLS DEVELOPMENT This section highlights the efforts of the department with regard to skills development. TABLE 3.13.1 TRAINING NEEDS IDENTIFIED FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Occupational Category Gender Number of Training Needs Identified at Start of the Reporting Period Employees as at 01 April Learnerships Skills Other Forms Total 2019 Programmes of Training & Other Short Courses GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Legislators, senior officials and managers Female 1 - 1 - 1 Male 2 - 1 - 1 Professionals Female 25 - 15 5 20 Male 19 - 10 2 12 Technicians and associate professionals Female 16 - 9 4 13 Male 4 - 2 1 3 Clerks Female 14 - 7 2 9 Male 10 - 2 2 4 Service and sales workers Female - - - - -

ANNUAL REPORT Male - - - - - Skilled agriculture and fishery workers Female - - - - - Male - - - - - Craft and related trades workers Female - - - - - Male - - - - - Plant and machine operators and assemblers Female - - - - - Male 1 - 1 1 1 Elementary occupations Female - - - - - 140 Male - - - - - Sub Total Female 56 - 32 11 43 Male 36 - 16 6 22 Total 92 - 48 17 65 3.13. SKILLS DEVELOPMENT This section highlights the efforts of the department with regard to skills development. TABLE 3.13.1 TRAINING NEEDS IDENTIFIED FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Occupational Category Gender Number of Training Needs Identified at Start of the Reporting Period Employees as at 01 April Learnerships Skills Other Forms Total 2019 Programmes of Training & Other Short Courses GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Legislators, senior officials and managers Female 1 - 1 - 1 Male 2 - 1 - 1 Professionals Female 25 - 15 5 20 Male 19 - 10 2 12 Technicians and associate professionals Female 16 - 9 4 13 Male 4 - 2 1 3 Clerks Female 14 - 7 2 9 Male 10 - 2 2 4 Service and sales workers Female - - - - -

ANNUAL REPORT Male - - - - - Skilled agriculture and fishery workers Female - - - - - Male - - - - - Craft and related trades workers Female - - - - - Male - - - - - Plant and machine operators and assemblers Female - - - - - Male 1 - 1 1 1 Elementary occupations Female - - - - - 140 Male - - - - - Sub Total Female 56 - 32 11 43 Male 36 - 16 6 22 Total 92 - 48 17 65

GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.13.2 TRAINING PROVIDED FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020 Occupational Category Gender Number of Training Provided within the Reporting Period Employees Learnerships Skills Other Forms Total as at 01 Programmes of Training April 2019 & Other Short Courses Legislators, senior officials and managers Female 1 1 - 1 Male 2 1 - 1 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Professionals Female 25 15 5 20 Male 19 10 2 12 Technicians and associate professionals Female 16 9 4 13 Male 4 2 1 3 Clerks Female 14 7 2 9 Male 10 2 2 4 Service and sales workers Female - - - - - Male - - - - - Skilled agriculture and fishery workers Female - - - - -

ANNUAL REPORT Male - - - - - Craft and related trades workers Female - - - - - Male - - - - - Plant and machine operators and assemblers Female - - - - - Male 1 - 1 1 1 Elementary occupations Female - - - - Male - - - - Sub Total Female 56 32 11 43 141 Male 36 16 6 22 Total 92 48 17 65 GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

3.14. INJURY ON DUTY The following tables provide basic information on injury on duty.

TABLE 3.14.1 INJURY ON DUTY FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Nature of Injury 0n Duty Number % of Total Required basic medical attention only - - Temporary total disablement - -

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Permanent disablement - - Fatal - - Total - -

3.15 UTILISATION OF CONSULTANTS The following tables relates information on the utilisation of consultants in the department. In terms of the Public Service Regulations “consultant’ means a natural or juristic person or a partnership who or which provides, in terms of a specific contract on an ad hoc basis, any of the following professional services to a department against remuneration received from any source:

(a) The rendering of expert advice;

ANNUAL REPORT (b) The drafting of proposals for the execution of specific tasks; and (c) The execution of a specific task which is of a technical or intellectual nature, but excludes an employee of a department.

TABLE 3.15.1 REPORT ON CONSULTANT APPOINTMENTS USING APPROPRIATED FUNDS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Project Title Total Number of Consultants that Worked Duration Contract Value in on Project (Work Days) Rand N/A

142 Total Number of Projects Total Individual Consultants Total Duration Total Contract Value in Rand Work Days N/A GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 142

GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

TABLE 3.15.2 ANALYSIS OF CONSULTANT APPOINTMENTS USING APPROPRIATED FUNDS, IN TERMS OF HISTORICALLY DISADVANTAGED INDIVIDUALS (HDIS) FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Project Title Percentage Ownership by HDI Groups Percentage Management by HDI Groups Number of Consultants from HDI Groups that Work on the Project N/A

TABLE 3.15.3 REPORT ON CONSULTANT APPOINTMENTS USING DONOR FUNDS FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Project Title Total Number of Consultants that Worked Duration Donor and Contract Value in Rand on Project (Work Days)

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT N/A

Total Number of Projects Total Individual Consultants Total Duration Total Contract Value in Rand Work Days N/A

TABLE 3.15.4 ANALYSIS OF CONSULTANT APPOINTMENTS USING DONOR FUNDS, IN TERMS OF HISTORICALLY DISADVANTAGED INDIVIDUALS (HDIS) FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Project Title Percentage Ownership by HDI Groups Percentage Management by HDI Groups Number of Consultants from HDI Groups that Work on the Project N/A ANNUAL REPORT 143 GAUTENG LIQUOR BOARD PART D HUMAN RESOURCE MANAGEMENT

3.16. SEVERANCE PACKAGES TABLE 3.16.1 GRANTING OF EMPLOYEE INITIATED SEVERANCE PACKAGES FOR THE PERIOD 01 APRIL 2019 AND 31 MARCH 2020

Salary Band Number of Number of Number of Number of Applications Applications Applications Packages Received Referred to Supported by Approved by the MPSA MPSA Department Lower skilled (Levels 1-2) - - - - Skilled (Levels 3-5) - - - - GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Highly skilled production (Levels 6-8) - - - - Highly skilled supervision (Levels 9-12) - - - - Senior management (Levels 13-16) - - - - Total - - - - ANNUAL REPORT 144 FINANCIAL INFORMATION PART E

ANNUAL REPORT ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 144 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 145 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART E FINANCIAL INFORMATION

TABLE OF CONTENTS

REPORT OF THE AUDITOR-GENERAL 147

APPROPRIATION STATEMENT 150

NOTES TO THE APPROPRIATION STATEMENT 182

STATEMENT OF FINANCIAL PERFORMANCE 184

STATEMENT OF FINANCIAL POSITION 185

STATEMENT OF CHANGES IN NET ASSETS 186

CASH FLOW STATEMENT 187

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (INCLUDING ACCOUNTING POLICIES) 188

ANNEXURES 221

ANNUAL REPORT 146 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT REPORT OF THE AUDITOR-GENERAL PARTPART EA

REPORT OF THE AUDITOR-GENERAL TO THE GAUTENG PROVINCIAL LEGISLATURE ON VOTE NO. 3: GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT

REPORT ON THE FINANCIAL STATEMENTS

Opinion Investments 1. I have audited the financial statements of the Gauteng 7. As disclosed in the financial statements note 11, the Department of Economic Development set out on department is holding an investments in Maropeng a pages 150 to 220, which comprise the appropriation A’frika Leisure through a public private partnership statement, statement of financial position as at 31 arrangement which reached expiry. March 2020, statement of financial performance, statement of changes in net assets and cash flow 8. The note highlights that the department is in the statement for the year then ended, as well as the notes process of conducting a due diligence to account for to the financial statements, including a summary of investment in accordance with the termination clauses significant accounting policies. of the public private partnership and that provincial treasury granted an exemption for a period of two 2. In my opinion, the financial statements present fairly, years for the department to implement the termination in all material respects, the financial position of the clauses. Gauteng Department of Economic Development as at 31 March 2020, and its financial performance and cash 9. The note further highlights that the movable assets flows for the year then ended in accordance with the transferred has been accounted for and disclosed Modified Cash Standard (MCS) and the requirements under note 29 to the annual financial statements. of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA) and the Division for Responsibilities of the accounting officer for the Revenue Act of South Africa, 2019 (Act No. 16 of 2019) financial statements (Dora). 10. The accounting officer is responsible for the preparation Basis for opinion and fair presentation of the financial statements in accordance with the MCS and the requirements of the 3. I conducted my audit in accordance with the PFMA and Dora and for such internal control as the International Standards on Auditing (ISAs). My accounting officer determines is necessary to enable responsibilities under those standards are further the preparation of financial statements that are free described in the auditor-general’s responsibilities for from material misstatement, whether due to fraud or the audit of the financial statements section of this error. auditor’s report. 11. In preparing the financial statements, the accounting officer is responsible for assessing the department’s 4. I am independent of the department in accordance ability to continue as a going concern, disclosing, as with sections 290 and 291 of the Code of ethics for applicable, matters relating to going concern and professional accountants and parts 1 and 3 of the using the going concern basis of accounting unless International Code of Ethics for Professional Accountants the appropriate governance structure either intends to (including International Independence Standards) of the liquidate the department or to cease operations, or has International Ethics Standards Board for Accountants no realistic alternative but to do so. (IESBA codes) as well as the ethical requirements that are relevant to my audit in South Africa. I have fulfilled Auditor-general’s responsibilities for the audit of my other ethical responsibilities in accordance with these requirements and the IESBA codes. the financial statements 12. My objectives are to obtain reasonable assurance 5. I believe that the audit evidence I have obtained is about whether the financial statements as a whole sufficient and appropriate to provide a basis formy are free from material misstatement, whether due opinion. to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance but is not a guarantee that Emphasis of matter an audit conducted in accordance with the ISAs will 6. I draw attention to the matter below. My opinion is not always detect a material misstatement when it exists. modified in respect of this matter. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 147 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART E REPORT OF THE AUDITOR-GENERAL

economic decisions of users taken on the basis of relevant, and assessed the reliability of the reported these financial statements. performance information to determine whether it was valid, accurate and complete. 13. A further description of my responsibilities for the audit of the financial statements is included in the 18. I did not identify any material findings on the annexure to this auditor’s report. usefulness and reliability of the reported performance information for the following programme: REPORT ON THE AUDIT OF THE ANNUAL PERFORMANCE REPORT ■■ Programme 4 - Business regulation and governance Introduction and scope Other matters 14. In accordance with the Public Audit Act of South Africa 2004 (Act No. 25 of 2004) (PAA) and the general notice 19. I draw attention to the matters below. issued in terms thereof, I have a responsibility to report on the usefulness and reliability of the reported Achievement of planned targets performance information against predetermined 20. Refer to the annual performance report on pages 24 objectives for the selected programme presented in the to 55 for information on the achievement of planned annual performance report. I performed procedures to targets for the year and explanations provided for the identify material findings but not to gather evidence to under/ over achievement of a number of targets. express assurance. Adjustment of material misstatement 15. My procedures address the usefulness and reliability 21. I identified a material misstatement in the annual per- of the reported performance information, which must formance report submitted for auditing. This material be based on the approved performance planning misstatement was on the reported performance infor- documents of the department. I have not evaluated the mation of programme 4 Business regulation and gov- completeness and appropriateness of the performance ernance. As management subsequently corrected the indicators included in the planning documents. My misstatement, I did not raise any material finding on procedures do not examine whether the actions the usefulness and reliability of the reported perfor- taken by the department enabled service delivery. My mance information. procedures also do not extend to any disclosures or assertions relating to planned performance strategies REPORT ON THE AUDIT OF COMPLIANCE WITH and information in respect of future periods that LEGISLATION may be included as part of the reported performance information. Accordingly, my findings do not extend to Introduction and scope these matters. 22. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to report 16. I evaluated the usefulness and reliability of the material findings on the department’s compliance reported performance information in accordance with specific matters in key legislation. I performed with the criteria developed from the performance procedures to identify findings but not to gather management and reporting framework, as defined evidence to express assurance. in the general notice, for the following selected programme presented in the annual performance I did not identify material findings on compliance report of the department for the year ended 31 March with the specific matters in key legislation set out in 2020: the general notice issued in terms of the PAA. OTHER INFORMATION Programme Pages in the annual performance report 23. The accounting officer is responsible for the other information. The other information comprises the Programme 4 – Business 36 - 46 information included in the annual report. The other regulation and governance information does not include the financial statements, the auditor’s report and the selected programme 17. I performed procedures to determine whether the presented in the annual performance report that have reported performance information was properly been specifically reported in this auditor’s report. presented and whether performance was consistent with the approved performance planning documents. 24. My opinion on the financial statements and findings on I performed further procedures to determine whether the reported performance information and compliance the indicators and related targets were measurable and with legislation do not cover the other information and

ANNUAL REPORT 148 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT REPORT OF THE AUDITOR-GENERAL PARTPART EA

I do not express an audit opinion or any form of assurance conclusion thereon.

25. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected programme presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

26. If, based on the work I have performed, I conclude that there is a material misstatement in this other information, I am required to report that fact. I have nothing to report in this regard.

INTERNAL CONTROL DEFICIENCIES 27. I considered internal control relevant to my audit of the financial statements, reported performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance on it. I did not identify any significant deficiencies in internal control.

Johannesburg 30 September 2020

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 149 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

Appropriation per programme 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of Appropriation Expenditure final appropri- ation

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Programme 1. ADMINISTRATION 315 840 - (12 785) 303 055 243 712 59 343 80 255 503 225 482 2. INTEGRATED ECONOMIC DEVELOPMENT SERVICES 245 771 - - 245 771 245 771 - 100 254 544 254 388 3. TRADE AND SECTOR DEVELOPMENT 868 201 - 1 872 870 073 870 073 - 100 863 821 863 771 4. BUSINESS REGULATION AND GOVERNANCE 104 055 - 6 413 110 468 105 724 4 744 96 61 339 58 239 5. ECONOMIC PLANNING 104 425 - 4 500 108 925 93 700 15 225 86 101 192 94 481 Subtotal 1 638 292 - - 1 638 292 1 558 980 79 312 95 1 536 399 1 496 359 TOTAL 1 638 292 - - 1 638 292 1 558 980 79 312 95 1 536 399 1 496 359 ANNUAL REPORT Reconciliation with statement of financial performance ADD Departmental receipts 1 180 549 1 049 328 Actual amounts per statement of financial performance (total revenue) 2 818 841 2 585 727 ADD Prior year unauthorised expenditure approved without funding 150 Actual amounts per statement of financial performance (total expenditure) 1 558 980 1 496 359 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 150

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

Appropriation per economic classification

2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

Economic classification Current payments 451 171 (7 366) (1 872) 441 933 371 463 70 470 84 392 522 352 666 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Compensation of employees 240 871 (206) - 240 665 225 453 15 212 94 223 063 221 029 Salaries and wages 208 012 218 - 208 230 195 552 12 678 94 194 678 192 870 Social contributions 32 859 (424) - 32 435 29 901 2 534 92 28 385 28 159 Goods and services 210 300 (7 160) (1 872) 201 268 146 010 55 258 73 169 459 131 637 Administrative fees 708 5 - 713 478 235 67 1 220 800 Advertising 16 613 1 161 - 17 774 17 727 47 100 21 795 6 483 Minor assets 157 505 - 662 651 11 98 471 78 Audit costs: External 6 912 (52) - 6 860 4 808 2 052 70 4 775 4 775

ANNUAL REPORT Bursaries: Employees 1 991 50 - 2 041 2 030 11 100 1 572 1 440 Catering: Departmental activities 4 918 (1 219) - 3 699 2 262 1 437 61 2 741 2 342 Communication 5 233 450 - 5 683 4 507 1 176 79 4 232 4 128 Computer services 16 665 (450) - 16 215 16 140 75 100 15 619 13 323 Consultants: Business and advisory services 49 983 (4 554) - 45 429 31 855 13 574 70 40 093 33 827 Legal services 1 596 - - 1 596 972 624 61 1 371 1 369 Contractors 17 887 - - 17 887 4 762 13 125 27 4 019 1 562 151 Agency and support / outsourced services 360 40 - 400 311 89 78 400 325 Entertainment 56 (56) - - - - - 4 4 Fleet services 2 872 60 - 2 932 1 858 1 074 63 1 592 1 469 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

Consumable supplies 2 183 250 - 2 433 1 567 866 64 2 223 1 335 Consumable: Stationery, printing and office supplies 9 991 (2 230) (872) 6 889 2 561 4 329 37 2 805 2 492 Operating leases 26 952 4 - 26 956 23 409 3 547 87 24 005 22 429 Property payments 28 989 - - 28 989 23 936 5 053 83 26 080 25 797 Travel and subsistence 6 375 (876) (1 000) 4 499 1 521 2 978 34 5 219 1 840

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Training and development 2 817 - - 2 817 797 2 020 28 2 988 2 715 Operating payments 467 100 - 567 326 241 58 1 098 11 Venues and facilities 5 950 (148) - 5 802 3 478 2 324 60 4 950 2 986 Rental and hiring 625 (200) - 425 53 372 13 187 108

Transfers and subsidies 1 167 432 6 961 1 872 1 176 265 1 176 233 32 100 1 127 317 1 127 248 Departmental agencies and accounts 1 166 987 6 728 1 872 1 175 587 1 175 587 - 100 1 126 560 1 126 560 Departmental agencies and accounts 1 166 987 6 728 1 872 1 175 587 1 175 587 - 100 1 126 560 1 126 560 Households 445 233 - 678 646 32 95 757 688 ANNUAL REPORT Social benefits 445 233 - 678 646 32 95 757 688 Payments for capital assets 19 689 405 - 20 094 11 284 8 810 56 16 491 16 378 Machinery and equipment 19 689 200 - 19 889 11 081 8 808 56 9 502 9 389 Transport equipment 7 721 - - 7 721 4 173 3 548 54 5 605 5 574 Other machinery and equipment 11 968 200 - 12 168 6 909 5 259 57 3 897 3 815 Intangible assets - 205 - 205 203 2 99 6 989 6 989 Payments for financial assets ------69 67 152 Total 1 638 292 - - 1 638 292 1 558 980 79 312 95 1 536 399 1 496 359 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 152

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

Programme 1: ADMINISTRATION

2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

Sub programme 1. OFFICE OF THE MEC 8 869 - (1 000) 7 869 6 334 1 536 81 7 856 7 580 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT 2. OFFICE OF THE HOD 27 466 - (2 413) 25 053 15 919 9 134 64 16 476 14 601 3. FINANCIAL MANAGEMENT 59 668 1 700 (2 372) 58 996 46 090 12 906 78 42 540 42 110 4. CORPORATE SERVICES 219 837 (1 700) (7 000) 211 137 175 370 35 768 83 188 631 161 191 Total for sub programmes 315 840 - (12 785) 303 055 243 712 59 343 80 255 503 225 482

Economic classification Current payments 295 916 (330) (12 785) 282 801 232 290 50 511 82 245 721 215 816 Compensation of employees 143 384 - (10 913) 132 471 126 380 6 091 95 123 474 122 629

ANNUAL REPORT Salaries and wages 122 454 - (9 650) 112 804 108 893 3 911 97 106 651 105 885 Social contributions 20 930 - (1 263) 19 667 17 487 2 180 89 16 823 16 743 Goods and services 152 532 (330) (1 872) 150 330 105 910 44 420 71 122 247 93 187 Administrative fees 429 - - 429 270 159 63 259 226 Advertising 15 929 1 000 - 16 929 16 886 43 100 20 792 5 611 Minor assets 157 505 - 662 651 11 98 471 78 Audit costs: External 6 912 (52) - 6 860 4 808 2 052 70 4 775 4 775 Bursaries: Employees 1 991 50 - 2 041 2 030 11 100 1 572 1 440 153 Catering: Departmental activities 1 330 - - 1 330 237 1 093 18 573 536 Communication 5 233 - - 5 233 4 060 1 173 78 4 140 4 126 Computer services 15 961 - - 15 961 15 946 15 100 15 529 13 233 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

Consultants: Business and advisory services 10 935 156 - 11 091 3 158 7 933 29 5 280 3 182 Legal services 1 596 - - 1 596 972 624 61 1 371 1 369 Contractors 10 856 - - 10 856 1 248 9 608 12 3 467 1 050 Agency and support / outsourced services 360 (100) - 260 175 85 68 400 325 Entertainment 56 (56) - - - - - 4 4 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Fleet services 2 869 60 - 2 929 1 856 1 073 63 1 442 1 438 Consumable supplies 2 143 - - 2 143 1 299 844 61 1 952 1 071 Consumable: Stationery, printing 2 433 and office supplies 9 320 (1 890) (872) 6 558 2 560 3 999 39 2 438 Operating leases 26 952 - - 26 952 23 406 3 546 87 24 005 22 429 Property payments 28 989 - - 28 989 23 936 5 053 83 26 080 25 797 Travel and subsistence 3 732 318 (1 000) 3 050 762 2 288 25 2 301 473 Training and development 2 758 - - 2 758 741 2 017 27 2 988 2 715 Operating payments 467 - - 467 232 235 50 54 11 ANNUAL REPORT Venues and facilities 3 182 (321) - 2 861 667 2 194 23 2 205 791 Rental and hiring 375 - - 375 11 364 3 149 75 Transfers and subsidies 235 130 - 365 341 24 93 245 243 Households 235 130 - 365 341 24 93 245 243 Social benefits 235 130 - 365 341 24 93 245 243 Payments for capital assets 19 689 200 - 19 889 11 081 8 808 56 9 502 9 389 Machinery and equipment 19 689 200 - 19 889 11 081 8 808 56 9 502 9 389

154 Transport equipment 7 721 - - 7 721 4 173 3 548 54 5 605 5 574 Other machinery and equipment 11 968 200 - 12 168 6 909 5 259 57 3 897 3 815 Payments for financial assets ------35 34 Total 315 840 - (12 785) 303 055 243 712 59 343 80 255 503 225 482 Consultants: Business and advisory services 10 935 156 - 11 091 3 158 7 933 29 5 280 3 182 Legal services 1 596 - - 1 596 972 624 61 1 371 1 369 Contractors 10 856 - - 10 856 1 248 9 608 12 3 467 1 050 Agency and support / outsourced services 360 (100) - 260 175 85 68 400 325 Entertainment 56 (56) - - - - - 4 4 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Fleet services 2 869 60 - 2 929 1 856 1 073 63 1 442 1 438 Consumable supplies 2 143 - - 2 143 1 299 844 61 1 952 1 071 Consumable: Stationery, printing 2 433 and office supplies 9 320 (1 890) (872) 6 558 2 560 3 999 39 2 438 Operating leases 26 952 - - 26 952 23 406 3 546 87 24 005 22 429 Property payments 28 989 - - 28 989 23 936 5 053 83 26 080 25 797 Travel and subsistence 3 732 318 (1 000) 3 050 762 2 288 25 2 301 473 Training and development 2 758 - - 2 758 741 2 017 27 2 988 2 715 Operating payments 467 - - 467 232 235 50 54 11 ANNUAL REPORT Venues and facilities 3 182 (321) - 2 861 667 2 194 23 2 205 791 Rental and hiring 375 - - 375 11 364 3 149 75 Transfers and subsidies 235 130 - 365 341 24 93 245 243 Households 235 130 - 365 341 24 93 245 243 Social benefits 235 130 - 365 341 24 93 245 243 Payments for capital assets 19 689 200 - 19 889 11 081 8 808 56 9 502 9 389 Machinery and equipment 19 689 200 - 19 889 11 081 8 808 56 9 502 9 389

154 Transport equipment 7 721 - - 7 721 4 173 3 548 54 5 605 5 574 Other machinery and equipment 11 968 200 - 12 168 6 909 5 259 57 3 897 3 815 Payments for financial assets ------35 34 Total 315 840 - (12 785) 303 055 243 712 59 343 80 255 503 225 482

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

1.1 OFFICE OF THE MEC 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000

Current payments 8 849 - (1 000) 7 849 6 317 1 533 81 7 856 7 580 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Compensation of employees 6 463 - - 6 463 5 971 492 92 7 759 7 489 Goods and services 2 386 - (1 000) 1 386 346 1 041 25 97 91 Transfers and subsidies 20 - - 20 17 3 85 - - Households 20 - - 20 17 3 85 - - Total 8 869 - (1 000) 7 869 6 334 1 536 81 7 856 7 580 ANNUAL REPORT 155 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

1.2 OFFICE OF THE HOD 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payments 27 456 - (2 413) 25 043 15 919 9 124 64 16 427 14 553 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Compensation of employees 18 300 - (2 413) 15 887 13 929 1 958 88 13 144 13 020 Goods and services 9 156 - - 9 156 1 990 7 166 22 3 283 1 533 Transfers and subsidies 10 - - 10 - 10 - 39 39 Households 10 - - 10 - 10 - 39 39 Payments for financial assets ------10 9 Total 27 466 - (2 413) 25 053 15 919 9 134 64 16 476 14 601 ANNUAL REPORT 156 1.2 OFFICE OF THE HOD 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payments 27 456 - (2 413) 25 043 15 919 9 124 64 16 427 14 553 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Compensation of employees 18 300 - (2 413) 15 887 13 929 1 958 88 13 144 13 020 Goods and services 9 156 - - 9 156 1 990 7 166 22 3 283 1 533 Transfers and subsidies 10 - - 10 - 10 - 39 39 Households 10 - - 10 - 10 - 39 39 Payments for financial assets ------10 9 Total 27 466 - (2 413) 25 053 15 919 9 134 64 16 476 14 601 ANNUAL REPORT 156

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

1.3 FINANCIAL MANAGEMENT 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payments 51 937 1 650 (2 372) 51 215 41 863 9 352 82 36 853 36 455

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Compensation of employees 32 954 - (1 500) 31 454 29 490 1 964 94 26 938 26 652 Goods and services 18 983 1 650 (872) 19 761 12 374 7 387 63 9 915 9 803 Transfers and subsidies 10 50 - 60 54 6 90 82 81 Households 10 50 - 60 54 6 90 82 81 Payments for capital assets 7 721 - - 7 721 4 173 3 548 54 5 605 5 574 Machinery and equipment 7 721 - - 7 721 4 173 3 548 54 5 605 5 574 Total 59 668 1 700 (2 372) 58 996 46 090 12 906 78 42 540 42 110 ANNUAL REPORT 157 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

1.4 CORPORATE SERVICES 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payments 207 674 (1 980) (7 000) 198 694 168 191 30 503 85 184 585 157 228 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Compensation of employees 85 667 - (7 000) 78 667 76 991 1 676 98 75 633 75 468 Goods and services 122 007 (1 980) - 120 027 91 200 28 827 76 108 952 81 760 Transfers and subsidies 195 80 - 275 270 5 98 124 123 Households 195 80 - 275 270 5 98 124 123 Payments for capital assets 11 968 200 - 12 168 6 909 5 259 57 3 897 3 815 Machinery and equipment 11 968 200 - 12 168 6 909 5 259 57 3 897 3 815 Payments for financial assets ------25 24 Total 219 837 (1 700) (7 000) 211 137 175 370 35 768 83 188 631 161 190 ANNUAL REPORT 158 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 158

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

Programme 2: INTEGRATED ECONOMIC DEVELOPMENT SERVICES 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Sub programme

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT 1. ENTERPRISE DEVELOPMENT 245 771 - - 245 771 245 771 - 100 242 689 242 689 2. REGIONAL AND LOCAL ECONOMIC DEVELOPMENT ------3. ECONOMIC EMPOWERMENT ------11 855 11 699 Total for sub programmes 245 771 - - 245 771 245 771 - 100 254 544 254 388

Economic classification Current payments ------11 785 11 643 Compensation of employees ------11 783 11 641 Salaries and wages ------10 138 10 004 ANNUAL REPORT Social contributions ------1 645 1 637 Goods and services ------2 2 Travel and subsistence ------2 2 Transfers and subsidies 245 771 - - 245 771 245 771 - 100 242 759 242 745 Departmental agencies and accounts 245 771 - - 245 771 245 771 - 100 242 689 242 689 Departmental agencies 245 771 - - 245 771 245 771 - 100 242 689 242 689 Households 70 56 159 Social benefits ------70 56 Total 245 771 - - 245 771 245 771 - 100 254 544 254 388 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

2.1 ENTERPRISE DEVELOPMENT 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payments ------GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Goods and services ------Transfers and subsidies 245 771 - - 245 771 245 771 - 100 242 689 242 689 Departmental agencies and accounts 245 771 - - 245 771 245 771 - 100 242 689 242 689 Total 245 771 - - 245 771 245 771 - 100 242 689 242 689 ANNUAL REPORT 160 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 160

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

2.2 REGIONAL AND LOCAL ECONOMIC DEVELOPMENT 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payments ------

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Compensation of employees ------Goods and services ------Transfers and subsidies ------Departmental agencies and accounts ------Households ------Payments for capital assets ------Machinery and equipment ------Payments for financial assets ------Total ------ANNUAL REPORT 161 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

2.3 ECONOMIC EMPOWERMENT 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payments ------11 785 11 643 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Compensation of employees ------11 783 11 641 Goods and services ------2 2 Transfers and subsidies ------70 56 Households ------70 56 Total ------11 855 11 699 ANNUAL REPORT 162 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 162

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

Programme 3: TRADE AND SECTOR DEVELOPMENT 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Sub programme 1. TRADE AND INVESTMENT GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT PROMOTION 6 728 (6 728) - - - - - 5 821 5 770 2. SECTOR DEVELOPMENT 224 660 6 728 1 872 233 260 233 260 - 100 229 838 229 838 3. STRATEGIC INITIATIVES 636 813 - - 636 813 636 813 - 100 628 162 628 162 Total for sub programmes 868 201 - 1 872 870 073 870 073 - 100 863 821 863 771

Economic classification Current payments 6 728 (6 728) - - - - - 5 773 5 770 Compensation of employees 6 606 (6 606) - - - - - 5 771 5 769 Salaries and wages 6 182 (6 182) - - - - - 5 530 5 528

ANNUAL REPORT Social contributions 424 (424) - - - - - 241 240 Goods and services 122 (122) - - - - - 2 2 Catering: Departmental activities 26 (26) ------Travel and subsistence 59 (59) - - - - - 2 2 Venues and facilities 37 (37) ------Transfers and subsidies 861 473 6 728 1 872 870 073 870 073 - 100 858 048 858 000 Departmental agencies and accounts 861 473 6 728 1 872 870 073 870 073 - 100 858 000 858 000

163 Departmental agencies 861 473 6 728 1 872 870 073 870 073 - 100 858 000 858 000 Households ------48 - Social benefits ------48 - Total 868 201 - 1 872 870 073 870 073 - 100 863 821 863 771 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

3.1 TRADE AND INVESTMENT PROMOTION 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Current payments 6 728 (6 728) - - - - - 5 773 5 770 Compensation of employees 6 606 (6 606) - - - - - 5 771 5 769 Goods and services 122 (122) - - - - - 2 2 Transfers and subsidies ------48 - Households ------48 - Total 6 728 (6 728) - - - - - 5 821 5 770 ANNUAL REPORT 164 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 164

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

3.2 SECTOR DEVELOPMENT 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payments ------

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Transfers and subsidies 224 660 6 728 1 872 233 260 233 260 - 100 229 838 229 838 Departmental agencies and accounts 224 660 6 728 1 872 233 260 233 260 - 100 229 838 229 838 Total 224 660 6 728 1 872 233 260 233 260 - 100 229 838 229 838 ANNUAL REPORT 165 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

3.3 STRATEGIC INITIATIVES 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Current payments - - Transfers and subsidies 636 813 - - 636 813 636 813 - 100 628 162 628 162 Departmental agencies and accounts 636 813 - - 636 813 636 813 - 100 628 162 628 162 Total 636 813 - - 636 813 636 813 - 100 628 162 628 162 ANNUAL REPORT 166 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 166

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

Programme 4: BUSINESS REGULATION AND GOVERNANCE 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Sub programme

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT 1. GOVERNANCE 4 599 (1 145) 1 500 4 954 3 339 1 615 67 4 139 3 702 2. IGR AND STRATEGIC PARTNERSHIPS 12 194 4 070 4 913 21 177 18 632 2 545 88 6 780 6 474 3. CONSUMER PROTECTION 27 519 (2 925) - 24 594 24 010 584 98 24 549 22 192 4. LIQUOR REGULATION 59 743 - - 59 743 59 743 - 100 25 871 25 871 Total for sub programmes 104 055 - 6 413 110 468 105 724 4 744 96 61 339 58 239

Economic classification Current payments 44 252 (50) 6 413 50 615 45 874 4 741 91 35 422 32 323 Compensation of employees 37 113 2 820 6 413 46 346 42 280 4 066 91 30 182 29 732

ANNUAL REPORT Salaries and wages 32 521 2 820 5 150 40 491 36 482 4 009 90 26 364 25 948 Social contributions 4 592 - 1 263 5 855 5 798 57 99 3 818 3 784 Goods and services 7 139 (2 870) - 4 269 3 594 675 84 5 240 2 591 Administrative fees 100 - - 100 37 63 37 74 23 Advertising 604 (99) - 505 505 - 100 1 003 872 Catering: Departmental activities 1 375 (875) - 500 438 63 88 456 426 Consultants: Business and advisory services 1 949 (1 225) - 724 580 144 80 661 50 167 Contractors 113 - - 113 4 109 4 62 22 Fleet services 3 - - 3 2 1 76 110 31 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

Consumable supplies 38 50 - 88 79 9 90 267 261 Consumable: Stationery, printing and office supplies 56 - - 56 - 56 - 111 52 Travel and subsistence 1 200 (825) - 375 278 97 74 652 292 Training and development 19 - - 19 18 1 95 - - Operating payments - 100 - 100 94 6 94 1 044 -

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Venues and facilities 1 677 - - 1 677 1 557 120 93 795 561 Rental and hiring 5 - - 5 - 5 - 5 - Transfers and subsidies 59 803 50 - 59 853 59 850 4 100 25 917 25 916 Departmental agencies and accounts 59 743 - - 59 743 59 743 - 100 25 871 25 871 Departmental agencies 59 743 - - 59 743 59 743 - 100 25 871 25 871 Households 60 50 - 110 107 4 97 46 45 Social benefits 60 50 - 110 107 4 97 46 45 Total 104 055 - 6 413 110 468 105 724 4 744 96 61 339 58 239 ANNUAL REPORT 168 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 168

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

4.1 GOVERNANCE 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payments 4 579 (1 125) 1 500 4 954 3 339 1 615 67 4 096 3 660

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Compensation of employees 3 779 (584) 1 500 4 695 3 187 1 508 68 3 181 2 923 Goods and services 800 (541) - 259 152 107 59 915 737 Transfers and subsidies 20 (20) - - - - - 43 42 Households 20 (20) - - - - - 43 42 Total 4 599 (1 145) 1 500 4 954 3 339 1 615 67 4 139 3 702 ANNUAL REPORT 169 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

4.2 IGR AND STRATEGIC PARTNERSHIPS 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payments 12 174 3 980 4 913 21 067 18 526 2 542 88 6 780 6 474 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Compensation of employees 9 572 5 624 4 913 20 109 17 607 2 502 88 5 879 5 865 Goods and services 2 602 (1 644) - 958 919 40 96 901 609 Transfers and subsidies 20 90 - 110 107 4 97 - - Households 20 90 - 110 107 4 97 - - Total 12 194 4 070 4 913 21 177 18 632 2 545 88 6 780 6 474 ANNUAL REPORT 170 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 170

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

4.3 CONSUMER PROTECTION 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payments 27 499 (2 905) - 24 594 24 010 584 98 24 546 22 190

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Compensation of employees 23 762 (2 220) - 21 542 21 486 56 100 21 122 20 944 Goods and services 3 737 (685) - 3 052 2 524 528 83 3 424 1 245 Transfers and subsidies 20 (20) - - - - - 3 2 Households 20 (20) - - - - - 3 2 Total 27 519 (2 925) - 24 594 24 010 584 98 24 549 22 192 ANNUAL REPORT 171 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

4.4 LIQUOR REGULATION 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payments - - - GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Transfers and subsidies 59 743 - - 59 743 59 743 - 100 25 871 25 871 Departmental agencies and accounts 59 743 - - 59 743 59 743 - 100 25 871 25 871 Total 59 743 - - 59 743 59 743 - 100 25 871 25 871 ANNUAL REPORT 172 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 172

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

Programme 5: ECONOMIC PLANNING 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Sub programme

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT 1. POLICY AND PLANNING 24 420 (263) 1 500 25 657 23 368 2 289 91 25 033 23 791 2. RESEARCH AND DEVELOPMENT 10 104 700 - 10 804 5 416 5 388 50 8 148 7 900 3. KNOWLEDGE MANAGEMENT 2 140 15 - 2 155 2 125 30 99 2 138 2 127 4. MONITORING AND EVALUATION ------5. ECONOMIC INFRASTRUCTURE DEVELOPMENT ------6. SECTOR AND INDUSTRY DEVELOPMENT 49 012 443 3 000 52 455 49 067 3 388 94 50 589 47 094 7. INCLUSIVE ECONOMY 18 749 (895) - 17 854 13 723 4 131 77 15 284 13 568 Total for sub programmes 104 425 - 4 500 108 925 93 700 15 225 86 101 192 94 481 ANNUAL REPORT

Economic classification Current payments 104 275 (258) 4 500 108 517 93 298 15 219 86 93 821 87 114 Compensation of employees 53 768 3 580 4 500 61 848 56 793 5 055 92 51 853 51 259 Salaries and wages 46 855 3 580 4 500 54 935 50 177 4 758 91 45 995 45 504 Social contributions 6 913 - - 6 913 6 616 297 96 5 858 5 755 Goods and services 50 507 (3 838) - 46 669 36 505 10 164 78 41 968 35 855

173 Administrative fees 179 5 - 184 171 13 93 887 551 Advertising 80 260 - 340 336 4 99 Bursaries: Employees - - GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

Catering: Departmental activities 2 187 (318) - 1 869 1 588 281 85 1 712 1 380 Communication - 450 - 450 447 3 99 92 2 Computer services 704 (450) - 254 194 60 76 90 90 Consultants: Business and advisory services 37 099 (3 485) - 33 614 28 117 5 497 84 34 152 30 595 Contractors 6 918 - - 6 918 3 510 3 408 51 490 489

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Agency and support / outsourced services - 140 - 140 136 4 97 - Fleet services - - - - 40 -

Consumable supplies 2 200 - 202 189 13 94 4 4 Consumable: Stationery, printing and office supplies 615 (340) - 275 1 274 - 256 6 Travel and subsistence 1 384 (310) - 1 074 481 593 45 2 262 1 072 Training and development 40 - - 40 38 2 95 -

Venues and facilities 1 054 210 - 1 264 1 255 9 99 1 950 1 634 Rental and hiring 245 (200) - 45 42 3 93 33 33 ANNUAL REPORT Transfers and subsidies 150 53 - 203 199 5 98 348 344 Households 150 53 - 203 199 5 98 348 344 Social benefits 150 53 - 203 199 5 98 348 344 Payments for capital assets - 205 - 205 203 2 99 6 989 6 989 Intangible assets - 205 - 205 203 2 99 6 989 6 989 Payments for financial assets ------34 33 Total 104 425 - 4 500 108 925 93 700 15 225 86 101 192 94 481 174 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 174

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

5.1 POLICY AND PLANNING 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payments 24 330 (255) 1 500 25 575 23 288 2 287 91 24 883 23 642

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Compensation of employees 17 554 180 1 500 19 234 17 655 1 579 92 19 551 19 116 Goods and services 6 776 (435) - 6 341 5 633 708 89 5 332 4 526 Transfers and subsidies 90 (8) - 82 81 2 98 116 116 Households 90 (8) - 82 81 2 98 116 116 Payments for financial assets ------34 33 Total 24 420 (263) 1 500 25 657 23 368 2 289 91 25 033 23 791 ANNUAL REPORT 175 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

5.2 RESEARCH AND DEVELOPMENT 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payments 10 104 495 - 10 599 5 213 5 386 49 1 159 911 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Compensation of employees ------Goods and services 10 104 495 - 10 599 5 213 5 386 49 1 159 911 Payments for capital assets - 205 - 205 203 2 99 6 989 6 989 Intangible assets - 205 - 205 203 2 99 6 989 6 989 Total 10 104 700 - 10 804 5 416 5 388 50 8 148 7 900 ANNUAL REPORT 176 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 176

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

5.3 KNOWLEDGE MANAGEMENT 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payments 2 140 15 - 2 155 2 125 30 99 2 138 2 127

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Compensation of employees 2 140 - - 2 140 2 113 27 99 1 978 1 974 Goods and services - 15 - 15 12 3 80 160 153 Total 2 140 15 - 2 155 2 125 30 99 2 138 2 127 ANNUAL REPORT 177 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

5.4 MONITORING AND EVALUATION 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payments ------GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Compensation of employees ------Goods and services ------

Transfers and subsidies ------Total ------ANNUAL REPORT 178 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 178

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

5.5 ECONOMIC INFRASTRUCTURE DEVELOPMENT 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payments ------

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Compensation of employees ------Goods and services ------Transfers and subsidies ------Total ------ANNUAL REPORT 179 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

5.6 SECTOR AND INDUSTRY DEVELOPMENT 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payments 48 962 372 3 000 52 334 48 949 3 385 94 50 357 46 866 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Compensation of employees 23 010 3 700 3 000 29 710 26 477 3 233 89 21 054 20 966 Goods and services 25 952 (3 328) - 22 624 22 472 152 99 29 303 25 900 Transfers and subsidies 50 71 - 121 118 3 98 232 229 Households 50 71 - 121 118 3 98 232 229 Total 49 012 443 3 000 52 455 49 067 3 388 94 50 589 47 094 ANNUAL REPORT 180 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 180

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

5.7 INCLUSIVE ECONOMY 2019/20 2018/19

Adjusted Shifting of Virement Final Actual Variance Expenditure Final Actual Appropriation Funds Appropriation Expenditure as % of final Appropriation expenditure appropriation

Economic classification R’000 R’000 R’000 R’000 R’000 R’000 % R’000 R’000 Current payments 18 739 (885) - 17 854 13 723 4 131 77 15 284 13 568

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Compensation of employees 11 064 (300) - 10 764 10 548 216 98 9 270 9 203 Goods and services 7 675 (585) - 7 090 3 175 3 915 45 6 014 4 365 Transfers and subsidies 10 (10) ------Households 10 (10) ------Total 18 749 (895) - 17 854 13 723 4 131 77 15 284 13 568 ANNUAL REPORT 181 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART E FINANCIAL INFORMATION

NOTES TO THE APPROPRIATION STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 1. Detail of transfers and subsidies as per Appropriation Act (after Virement): Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-H) to the Annual Financial Statements.

2. Detail of specifically and exclusively appropriated amounts voted (after Virement): Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.

3. Detail on payments for financial assets Detail of these transactions per programme can be viewed in the note on Payments for financial assets to the Annual Financial Statements.

4. Explanations of material variances from Amounts Voted (after Virement):

4.1 Per programme Final Actual Variance Variance as Appropriation Expenditure a % of Final Appropriation R’000 R’000 R’000 Administration 303 055 243 712 59 343 20 Integrated Economic Development 245 771 245 771 - - Services Trade and Sector Development 870 073 870 073 - - Business Regulation and Governance 110 468 105 724 4 744 4 Economic Planning 108 925 93 700 15 225 14

4.2 Per economic classification Final Actual Variance Variance as Appropriation Expenditure a % of Final Appropriation R’000 R’000 R’000 Current payments 441 933 371 463 70 470 16 Compensation of employees 240 665 225 453 15 212 6 Goods and services 201 268 146 010 55 258 27

Transfers and subsidies 1 176 265 1 176 233 32 - Departmental agencies and accounts 1 175 587 1 175 587 - - Households 678 646 32 5

Payments for capital assets 20 094 11 284 8 810 44 Machinery and equipment 19 889 11 081 8 808 44 Intangible assets 205 203 2 1

Payments for financial assets - - - -

ANNUAL REPORT 182 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT FINANCIAL INFORMATION PARTPART EA

NOTES TO THE APPROPRIATION STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Explanation of variance between the budget and actual

The underspending during the year under audit is attributed to compensation of employees due to high number of vacancy rate and staff turnover especially at senior management level.

Goods and services underspending are as a result of the delay in the procurement process of the regional economic profile data subscription for the Barometer. Non-transfer of the budget allocated for certain projects due to service level agreement and memorandum of agreement not yet finalised during the financial year and accruals of invoices received but not processed for payment, commitments for purchase orders issued but no delivery has taken place and payables of invoices received but not yet invoiced.

Under machinery and equipment is towards computers equipment’s that were procured and not yet delivered at the end of the financial year.

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 183 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART E FINANCIAL INFORMATION

STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2020

Note 2019/20 2018/19 R’000 R’000 REVENUE

Annual appropriation 1 1 638 292 1 536 399

Departmental revenue 2 1 290 921 1 132 023

TOTAL REVENUE 2 929 213 2 668 422

EXPENDITURE Current expenditure Compensation of employees 3 225 453 221 029 Goods and services 4 146 010 131 637 8% Commission to GGB 110 372 82 695 Total current expenditure 481 835 435 361

Transfers and subsidies Transfers and subsidies 6 1 176 233 1 127 248 Total transfers and subsidies 1 176 233 1 127 248

Expenditure for capital assets Tangible assets 7 11 081 9 389 Intangible assets 7 203 6 989 Total expenditure for capital assets 11 284 16 378

Payments for financial assets 5 - 67

TOTAL EXPENDITURE 1 669 352 1 579 054

SURPLUS FOR THE YEAR 1 259 861 1 089 368 Reconciliation of Net Surplus for the year Voted funds 79 312 40 040 Annual appropriation 79 312 40 040 Departmental revenue and PRF Receipts 13 1 180 549 1 049 328 SURPLUS FOR THE YEAR 1 259 861 1 089 368

ANNUAL REPORT 184 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT FINANCIAL INFORMATION PARTPART EA

STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 MARCH 2020

Note 2019/20 2018/19 R’000 R’000

ASSETS Current assets 187 005 136 165 Cash and cash equivalents 8 183 499 120 171 Prepayments and advances 9 - 14 700 Receivables 10 3 506 1 294

Non-current assets 4 4 Investments 11 4 4

TOTAL ASSETS 187 009 136 169

LIABILITIES

Current liabilities 185 243 134 480 Voted funds to be surrendered to the Revenue Fund 12 79 312 40 040 Departmental revenue and PRF Receipts to be surrendered to the Revenue Fund 13 69 175 94 060 Payables 14 36 756 380

Non-current liabilities Payables 15 1 318 1 289 TOTAL LIABILITIES 186 561 135 769 NET ASSETS 448 400

Represented by: Capitalisation reserves 4 4 Recoverable revenue 444 396

TOTAL 448 400

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 185 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART E FINANCIAL INFORMATION

STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 31 MARCH 2020

Note 2019/20 2018/19 R’000 R’000 NET ASSETS Capitalisation Reserves Opening balance 4 4 Closing balance 4 4

Recoverable revenue Opening balance 396 180 Transfers: 48 216 Irrecoverable amounts written off 5.1 - 67 Debts revised (241) 85 Debts recovered (included in departmental receipts) 410 378 Debts raised (121) (314) Closing balance 444 396 TOTAL 448 400

ANNUAL REPORT 186 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT FINANCIAL INFORMATION PARTPART EA

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

Note 2019/20 2018/19 R’000 R’000 CASH FLOWS FROM OPERATING ACTIVITIES Receipts 2 929 213 2 668 333 Annual appropriated funds received 1.1 1 638 292 1 536 399 Departmental revenue received 2 1 286 767 1 128 293 Interest received 2.2 4 154 3 641

Net (increase)/decrease in working capital 48 864 (65 720) Surrendered to Revenue Fund (1 245 474) (1 037 478) Current payments (481 835) (435 361) Payments for financial assets - (67) Transfers and subsidies paid (1 176 233) (1 127 248) Net cash flow available from operating activities 16 74 535 2 459

CASH FLOWS FROM INVESTING ACTIVITIES Payments for capital assets 7 (11 284) (16 378) Proceeds from sale of capital assets 2.3 - 89 Net cash flows from investing activities (11 284) (16 289)

CASH FLOWS FROM FINANCING ACTIVITIES

Increase/(decrease) in net assets 48 216 Increase/ (decrease) in non-current payables 29 - Net cash flows from financing activities 77 216

Net increase/(decrease) in cash and cash equivalents 63 328 (13 614) Cash and cash equivalents at beginning of period 120 171 133 785 Cash and cash equivalents at end of period 17 183 499 120 171

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 187 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART E FINANCIAL INFORMATION

ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2020

Summary of significant accounting policies The financial statements have been prepared in accordance with the following policies, which have been applied con- sistently in all material aspects, unless otherwise indicated. Management has concluded that the financial statements present fairly the department’s primary and secondary information.

The historical cost convention has been used, except where otherwise indicated. Management has used assessments and estimates in preparing the annual financial statements. These are based on the best information available at the time of preparation.

Where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the financial statements and to comply with the statutory requirements of the Public Finance Management Act (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the PFMA and the annual Division of Revenue Act. 1 Basis of preparation The financial statements have been prepared in accordance with the Modified Cash Standard. 2 Going concern The financial statements have been prepared on a going concern basis. 3 Presentation currency Amounts have been presented in the currency of the South African Rand (R) which is also the functional cur- rency of the department. 4 Rounding Unless otherwise stated financial figures have been rounded to the nearest one thousand Rand (R’000). 5 Foreign currency translation Cash flows arising from foreign currency transactions are translated into South African Rands using the spot exchange rates prevailing at the date of payment / receipt. 6 Comparative information 6.1 Prior period comparative information Prior period comparative information has been presented in the current year’s financial statements. Where necessary figures included in the prior period financial statements have been reclassified to ensure that the format in which the information is presented is consistent with the format of the current year’s financial state- ments. 6.2 Current year comparison with budget A comparison between the approved, final budget and actual amounts for each programme and economic classification is included in the appropriation statement. 7 Revenue 7.1 Appropriated funds Appropriated funds comprise of departmental allocations as well as direct charges against the revenue fund (i.e. statutory appropriation).

Appropriated funds are recognised in the statement of financial performance on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the state- ment of financial performance on the date the adjustments become effective.

The net amount of any appropriated funds due to / from the relevant revenue fund at the reporting date is recognised as a payable / receivable in the statement of financial position.

ANNUAL REPORT 188 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT FINANCIAL INFORMATION PARTPART EA

ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2020

7.2 Departmental revenue Departmental revenue is recognised in the statement of financial performance when received and is subse- quently paid into the relevant revenue fund, unless stated otherwise.

Any amount owing to the relevant revenue fund at the reporting date is recognised as a payable in the state- ment of financial position. 7.3 Accrued departmental revenue Accruals in respect of departmental revenue (excluding tax revenue) are recorded in the notes to the financial statements when:

■■ it is probable that the economic benefits or service potential associated with the transaction will flow to the department; and ■■ the amount of revenue can be measured reliably.

The accrued revenue is measured at the fair value of the consideration receivable.

Accrued tax revenue (and related interest and / penalties) is measured at amounts receivable from collecting agents.

Write-offs are made according to the department’s debt write-off policy 8 Expenditure 8.1 Compensation of employees 8.1.1 Salaries and wages Salaries and wages are recognised in the statement of financial performance on the date of payment. 8.1.2 Social contributions Social contributions made by the department in respect of current employees are recognised in the statement of financial performance on the date of payment.

Social contributions made by the department in respect of ex-employees are classified as transfers to house- holds in the statement of financial performance on the date of payment. 8.2 Other expenditure Other expenditure (such as goods and services, transfers and subsidies and payments for capital assets) is recognised in the statement of financial performance on the date of payment. The expense is classified as a capital expense if the total consideration paid is more than the capitalisation threshold. 8.3 Accruals and payables not recognised Accruals and payables not recognised are recorded in the notes to the financial statements at cost at the re- porting date. 8.4 Leases 8.4.1 Operating leases Operating lease payments made during the reporting period are recognised as current expenditure in the statement of financial performance on the date of payment.

The operating lease commitments are recorded in the notes to the financial statements.

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 189 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART E FINANCIAL INFORMATION

ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2020

8.4.2 Finance leases Finance lease payments made during the reporting period are recognised as capital expenditure in the state- ment of financial performance on the date of payment.

The finance lease commitments are recorded in the notes to the financial statements and are not apportioned between the capital and interest portions.

Finance lease assets acquired at the end of the lease term are recorded and measured at the lower of:

■■ cost, being the fair value of the asset; or ■■ the sum of the minimum lease payments made, including any payments made to acquire ownership at the end of the lease term, excluding interest. 9 Aid Assistance 9.1 Aid assistance received Aid assistance received in cash is recognised in the statement of financial performance when received. In-kind aid assistance is recorded in the notes to the financial statements on the date of receipt and is measured at fair value.

Aid assistance not spent for the intended purpose and any unutilised funds from aid assistance that are required to be refunded to the donor are recognised as a payable in the statement of financial position. 9.2 Aid assistance paid Aid assistance paid is recognised in the statement of financial performance on the date of payment. Aid assis- tance payments made prior to the receipt of funds are recognised as a receivable in the statement of financial position. 10 Cash and cash equivalents Cash and cash equivalents are stated at cost in the statement of financial position.

Bank overdrafts are shown separately on the face of the statement of financial position as a current liability.

For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts. 11 Prepayments and advances Prepayments and advances are recognised in the statement of financial position when the department re- ceives or disburses the cash.

Prepayments and advances are initially and subsequently measured at cost.

Prepayments and advances are expensed when the related expense is incurred.The department may elect to expense the prepayment immediately provided that the amount of prepayment is not material and it has been budgeted in the year expensed,to avoid the possibilities of negative cash flow. 12 Loans and receivables Loans and receivables are recognised in the statement of financial position at cost plus accrued interest, where interest is charged, less amounts already settled or written-off. Write-offs are made according to the department’s write-off policy. 13 Investments Investments are recognised in the statement of financial position at cost.

ANNUAL REPORT 190 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT FINANCIAL INFORMATION PARTPART EA

ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2020

14 Financial assets 14.1 Financial assets (not covered elsewhere) A financial asset is recognised initially at its cost plus transaction costs that are directly attributable to the acquisition or issue of the financial asset.

At the reporting date, a department shall measure its financial assets at cost, less amounts already settled or written-off, except for recognised loans and receivables, which are measured at cost plus accrued interest, where interest is charged, less amounts already settled or written-off. 14.2 Impairment of financial assets Where there is an indication of impairment of a financial asset, an estimation of the reduction in the recorded carrying value, to reflect the best estimate of the amount of the future economic benefits expected to be received from that asset, is recorded in the notes to the financial statements. 15 Payables Payables recognised in the statement of financial position are recognised at cost. 16 Capital Assets 16.1 Immovable capital assets Immovable assets reflected in the asset register of the department are recorded in the notes to the financial statements at cost or fair value where the cost cannot be determined reliably. Immovable assets acquired in a non-exchange transaction are recorded at fair value at the date of acquisition. Immovable assets are subse- quently carried in the asset register at cost and are not currently subject to depreciation or impairment.

Subsequent expenditure of a capital nature forms part of the cost of the existing asset when ready for use.

Additional information on immovable assets not reflected in the assets register is provided in the notes to financial statements. 16.2 Movable capital assets Movable capital assets are initially recorded in the notes to the financial statements at cost. Movable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition.

Where the cost of movable capital assets cannot be determined reliably, the movable capital assets are mea- sured at fair value and where fair value cannot be determined; the movable assets are measured at R1.

All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.

Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.

Subsequent expenditure that is of a capital nature forms part of the cost of the existing asset when ready for use.

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 191 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART E FINANCIAL INFORMATION

ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2020

16.3 Intangible assets Intangible assets are initially recorded in the notes to the financial statements at cost. Intangible assets ac- quired through a non-exchange transaction are measured at fair value as at the date of acquisition.

Internally generated intangible assets are recorded in the notes to the financial statements when the depart- ment commences the development phase of the project.

Where the cost of intangible assets cannot be determined reliably, the intangible capital assets are measured at fair value and where fair value cannot be determined; the intangible assets are measured at R1.

All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1. Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment.

Subsequent expenditure of a capital nature forms part of the cost of the existing asset when ready for use. 16.4 Project Costs: Work-in-progress Expenditure of a capital nature is initially recognised in the statement of financial performance at cost when paid.

Amounts paid towards capital projects are separated from the amounts recognised and accumulated in work- in-progress until the underlying asset is ready for use. Once ready for use, the total accumulated payments are recorded in an asset register. Subsequent payments to complete the project are added to the capital asset in the asset register.

Where the department is not the custodian of the completed project asset, the asset is transferred to the custodian subsequent to completion. 17 Provisions and Contingents 17.1 Provisions Provisions are recorded in the notes to the financial statements when there is a present legal or constructive obligation to forfeit economic benefits as a result of events in the past and it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle the obligation and a reliable estimate of the obligation can be made. The provision is measured as the best estimate of the funds required to settle the present obligation at the reporting date. 17.2 Contingent liabilities Contingent liabilities are recorded in the notes to the financial statements when there is a possible obligation that arises from past events, and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department or when there is a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation or the amount of the obligation cannot be measured reliably. 17.3 Contingent assets Contingent assets are recorded in the notes to the financial statements when a possible asset arises from past events, and whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department. 17.4 Capital commitments Capital commitments are recorded at cost in the notes to the financial statements.

ANNUAL REPORT 192 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT FINANCIAL INFORMATION PARTPART EA

ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2020

18 Unauthorised expenditure Unauthorised expenditure is recognised in the statement of financial position until such time as the expenditure is either:

■■ approved by Parliament or the Provincial Legislature with funding and the related funds are received; or ■■ approved by Parliament or the Provincial Legislature without funding and is written off against the appropriation in the statement of financial performance; or ■■ transferred to receivables for recovery.

Unauthorised expenditure is measured at the amount of the confirmed unauthorised expenditure. 19 Fruitless and wasteful expenditure Fruitless and wasteful expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the total value of the fruitless and or wasteful expenditure incurred.

Fruitless and wasteful expenditure is removed from the notes to the financial statements when it is resolved or transferred to receivables or written off.

Fruitless and wasteful expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable. 20 Irregular expenditure Irregular expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the value of the irregular expenditure incurred unless it is impracticable to determine, in which case reasons therefor are provided in the note.

Irregular expenditure is removed from the note when it is either condoned by the relevant authority, transferred to receivables for recovery, not condoned and removed or written-off.

Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are de- recognised when settled or subsequently written-off as irrecoverable. 21 Changes in accounting estimates and errors Changes in accounting estimates are applied prospectively in accordance with MCS requirements.

Correction of errors is applied retrospectively in the period in which the error has occurred in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the error. In such cases the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable. 22 Events after the reporting date Events after the reporting date that are classified as adjusting events have been accounted for in the financial statements. The events after the reporting date that are classified as non-adjusting events after the reporting date have been disclosed in the notes to the financial statements. 23 Principal-Agent arrangements The department is party to a principal-agent arrangement between the department and Gauteng Gambling Board,for collection of casino taxes,horse racing taxes and bookmakers license fees.In terms of the arrangement the department is the principal and is responsible for accounting,receiving and surrending to the Revenue Fund the casino taxes,horse racing taxes and bookmakers license fees revenue collected by Gauteng Gambling Board(GGB) on behalf of the department. All related revenues, expenditures, assets and liabilities have been recognised or recorded in terms of the relevant policies listed herein. Additional disclosures have been provided in the notes to the financial statements where appropriate.

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 193 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART E FINANCIAL INFORMATION

ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2020

24 Capitalisation reserve The capitalisation reserve comprises of financial assets and/or liabilities originating in a prior reporting period, but which are recognised in the statement of financial position for the first time in the current reporting period. Amounts are recognised in the capitalisation reserves when identified in the current period and are transferred to the National/Provincial Revenue Fund when the underlying asset is disposed, and the related funds are received. 25 Recoverable revenue Amounts are recognised as recoverable revenue when a payment made in a previous financial year becomes recoverable from a debtor in the current financial year. Amounts are either transferred to the National/ Provincial Revenue Fund when recovered or are transferred to the statement of financial performance when written-off. 26 Related party transactions Related party transactions within the MEC’s portfolio are recorded in the notes to the financial statements when the transaction is not at arm’s length.

The number of individuals and the full compensation of key management personnel is recorded in the notes to the financial statements. 27 Inventories At the date of acquisition, inventories are recognised at cost in the statement of financial performance.

Where inventories are acquired as part of a non-exchange transaction, the inventories are measured at fair value as at the date of acquisition.

Inventories are subsequently measured at the lower of cost and net realisable value or where intended for distribution (or consumed in the production of goods for distribution) at no or a nominal charge, the lower of cost and current replacement value.

The cost of inventories is assigned by using the weighted average cost basis. 28 Public-Private Partnerships Public Private Partnerships are accounted for based on the nature and or the substance of the partnership. The transaction is accounted for in accordance with the relevant accounting policies.

A summary of the significant terms of the PPP agreement, the parties to the agreement, and the dateof commencement thereof together with the description and nature of the concession fees received, the unitary fees paid, rights and obligations of the department are recorded in the notes to the financial statements. 29 Employee benefits The value of each major class of employee benefit obligation (accruals, payables not recognised and provisions) is disclosed in the Employee benefits note. 30 Transfers of functions Transfers of functions are accounted for by the acquirer by recognising or recording assets acquired and liabilities assumed at their carrying amounts at the date of transfer.

Transfers of functions are accounted for by the transferor by derecognising or removing assets and liabilities at their carrying amounts at the date of transfer.

ANNUAL REPORT 194 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT FINANCIAL INFORMATION PARTPART EA

ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2020

31 Mergers Mergers are accounted for by the combined department by recognising or recording assets acquired and liabilities assumed at their carrying amounts at the date of the merger.

Mergers are accounted for by the combining departments by derecognising or removing assets and liabilities at their carrying amounts at the date of the merger.

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 195 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART E FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

1. Annual Appropriation

1.1 Annual Appropriation Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for Provincial Departments (Voted funds):

2019/20 2018/19 Final Actual Funds Funds not Final Appropriation Funds not Appropriation Received requested Appropriation received requested / not received

R’000 R’000 R’000 R’000 R’000 Administration 303 055 303 055 - 255 503 255 503 - Integrated Economic 245 771 245 771 - 254 544 254 544 - Development Services Trade and Sector 870 073 870 073 - 863 821 863 821 - Development Business Regulation and 110 468 110 468 - 61 339 61 339 - Governance Economic Planning 108 925 108 925 - 101 192 101 192 - Total 1 638 292 1 638 292 - 1 536 399 1 536 399 -

2. Departmental revenue

2019/20 2018/19 Note R’000 R’000 Tax revenue 1 286 008 1 127 327 Sales of goods and services other than capital assets 2.1 432 481 Interest, dividends and rent on land 2.2 4 154 3 641 Sales of capital assets 2.3 - 89 Transactions in financial assets and liabilities 2.4 327 485 Total revenue collected 1 290 921 1 132 023 Departmental revenue collected 1 290 921 1 132 023

In terms of the Modified Cash Standard (MCS) recognition and measurement of revenue, the department is required to account and disclose the tax revenue at the gross amount

ANNUAL REPORT 196 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT FINANCIAL INFORMATION PARTPART EA

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note 2019/20 2018/19 R’000 R’000

2.1 Sales of goods and services other than capital assets

2

Sales of goods and services produced by the department 432 462 Sales by market establishment 266 409 Administrative fees 166 53 Sales of scrap, waste and other used current goods - 19 Total 432 481

2.2 Interest, dividends and rent on land

2

Interest 4 154 3 641 Total 4 154 3 641

2.3 Sale of capital assets

2

Tangible assets - 89 Machinery and equipment 29 - 89

Total - 89

2.4 Transactions in financial assets and liabilities

2

Receivables 69 189 Other Receipts including Recoverable Revenue 258 296 Total 327 485

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 197 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART E FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note 2019/20 2018/19 R’000 R’000

3. Compensation of employees

3.1 Salaries and Wages 3

Basic salary 158 930 154 879 Performance award 3 454 3 646 Service Based 75 82 Compensative/circumstantial 923 823 Other non-pensionable allowances 32 170 33 441 Total 195 552 192 871

3.2 Social contributions 3

Employer contributions Pension 19 624 18 797 Medical 10 243 9 328 Bargaining council 34 33 Total 29 901 28 158

Total compensation of employees 225 453 221 029

Average number of employees 417 416

Ga-Rankuwa Hotel School is currently being managed by Cradle of Humankind World Heritage site and they are a trading entity within the Department. The compensation of the employees of Ga-Rankuwa Hotel School is budgeted for under the Department.

ANNUAL REPORT 198 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT FINANCIAL INFORMATION PARTPART EA

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note 2019/20 2018/19 R’000 R’000

4. Goods and services Administrative fees 478 800 Advertising 17 727 6 483 Minor assets 4.1 651 78 Bursaries (employees) 2 030 1 440 Catering 2 262 2 342 Communication 4 507 4 128 Computer services 4.2 16 140 13 323 Consultants: Business and advisory services 31 855 33 827 Legal services 972 1 369 Contractors 4 762 1 562 Agency and support / outsourced services 311 325 Entertainment - 4 Audit cost – external 4.3 4 808 4 774 Fleet services 1 858 1 469 Consumables 4.4 4 128 3 827 Operating leases 23 409 22 429 Property payments 4.5 23 936 25 797 Rental and hiring 53 108 Travel and subsistence 4.6 1 521 1 840 Venues and facilities 3 479 2 986 Training and development 797 2 715 Other operating expenditure 4.7 326 11 Total 146 010 131 637

4.1 Minor assets 4

Tangible assets 651 78 Machinery and equipment 651 78 Total 651 78

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 199 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART E FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note 2019/20 2018/19 R’000 R’000 4.2 Computer services

4

External computer service providers 16 140 13 323 Total 16 140 13 323

4.3 Audit cost – External 4

Regularity audits 4 808 4 774 Total 4 808 4 774

4.4 Consumables 4

Consumable supplies 1 567 1 335 Uniform and clothing 783 202 Household supplies 159 292 Building material and supplies - 183 IT consumables 37 340 Other consumables 588 318 Stationery, printing and office supplies 2 561 2 492 Total 4 128 3 827

4.5 Property payments 4

Municipal services 6 640 6 184 Property maintenance and repairs 1 617 1 880 Other 15 679 17 733 Total 23 936 25 797

4.6 Travel and subsistence 4

Local 1 180 1 657 Foreign 341 183 Total 1 521 1 840

ANNUAL REPORT 200 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT FINANCIAL INFORMATION PARTPART EA

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note 2019/20 2018/19 R’000 R’000 4.7 Other operating expenditure

4

Professional bodies, membership and subscription fees 12 - Resettlement costs 125 - Other 189 11 Total 326 11

5. Payments for financial assets

Debts written off 5.1 - 67 Total - 67

5.1 Debts written off 5

Nature of debts written off Debts written off - 67

Total - 67 Total debt written off - 67

6. Transfers and subsidies

Departmental agencies and accounts Annexure 1B 1 175 587 1 126 560 Households Annexure 1G 646 688 Total 1 176 233 1 127 248

7. Expenditure for capital assets

Tangible assets 11 081 9 389 Machinery and equipment 29 11 081 9 389

Intangible assets 203 6 989 Software 30 203 6 989

Total 11 284 16 378

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 201 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART E FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

7.1 Analysis of funds utilised to acquire capital assets – 2019/20

Voted funds Aid assistance Total

R’000 R’000 R’000 Tangible assets 11 081 - 11 081 Machinery and equipment 11 081 - 11 081

Intangible assets 203 - 203 Software 203 - 203

Total 11 284 - 11 284

7.2 Analysis of funds utilised to acquire capital assets – 2018/19

Voted funds Aid assistance Total R’000 R’000 R’000 Tangible assets 9 389 - 9 389 Machinery and equipment 9 389 - 9 389

Intangible assets 6 989 - 6 989 Software 6 989 - 6 989

Total 16 378 - 16 378

7.3 Finance lease expenditure included in Expenditure for capital assets

Note 2019/20 2018/19 R’000 R’000 7

Tangible assets Machinery and equipment 4 173 5 574

Total 4 173 5 574

ANNUAL REPORT 202 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT FINANCIAL INFORMATION PARTPART EA

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note 2019/20 2018/19 R’000 R’000 8. Cash and cash equivalents 17

Consolidated Paymaster General Account 183 479 120 151 Cash on hand 20 20 Total 183 499 120 171

The cash and cash equivalent increase is attributed to higher underspending in the current financial year as compared to the prior financial year including an amount of R34.6 million transferred by the Gauteng Growth and Development Agency (GGDA) an agency of the department at year-end which will be surrendered back to the Provincial Revenue Fund (PRF).

9. Prepayments and advances

Prepayments (Not expensed) 9.1 - 14 700 Total - 14 700

9.1 Prepayments (Not expensed)

Note Balance as at Less: Amount Add or Less: Add: Balance as 9 1 April 2019 expensed in Other Current Year at 31 March current year prepayments 2020 R’000 R’000 R’000 R’000 R’000 Goods and services 14 700 (14 700) - - - Total 14 700 (14 700) - - -

9 Balance as at Less: Amount Add or Less: Add: Balance as 1 April 2018 expensed in Other Current Year at 31 March current year prepayments 2019 R’000 R’000 R’000 R’000 R’000 Goods and services 4 571 (4 571) - 14 700 14 700 Total 4 571 (4 571) - 14 700 14 700

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 203 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART E FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 10. Receivables

2019/20 2018/19 Current Non-current Total Current Non-current Total R’000 R’000 R’000 R’000 R’000 R’000

Note

Claims recoverable 10.1 2 714 - 2 714 322 - 322 Staff debt 10.2 784 - 784 971 - 971 Pension recoverable 10.3 - - - 1 - 1 Other receivable 8 - 8 - - - Total 3 506 - 3 506 1 294 - 1 294

10.1 Claims recoverable Note 2019/20 2018/19 R’000 R’000 10 and Annex 4

Provincial departments 815 - Public entities 1 899 322 Total 2 714 322

10.2 Staff debt 10

Current Employees 377 349 Ex-Employees 407 203 Sal: Reversal Control - 419 Total 784 971

10.3 Other receivables 10

Salary Tax Debt 8 - Pension recoverable - 1 Total 8 1

ANNUAL REPORT 204 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT FINANCIAL INFORMATION PARTPART EA

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note 2019/20 2018/19 11 and R’000 R’000 Annex 2A 11. Investments

Non-Current Shares and other equity Blue IQ Investment t/a GGDA 4 4 Maropeng a’ Africa - - Total 4 4

Total non-current 4 4

Analysis of non-current investments Opening balance 4 4

Closing balance 4 4

The Department held investment at MAL (Maropeng a A’frika Leisure) which was managed through a PPP (Public Private Partnership) that expired in 2015. In terms of the termination clause 27.2 of the concession agreement the revenue, loan, liabilities and movable assets should be transferred to the concessor.

During the 2019/20 the Department is still unable to account for the investment in MAL except for the movable assets which are accounted and disclosed under Note 29 to the AFS.

The process of conducting a due diligence to ensure accurate valuation of the investment, revenue, loan and liabilities is still underway. The Gauteng Provincial Treasury has granted the department an exemption of two financial years (2019/20 and 2020/21) to enable it to implement the termination clause in full.

12. Voted funds to be surrendered to the Revenue Fund

Opening balance 40 040 16 149 Transfer from statement of financial performance 79 312 40 040 Paid during the year (40 040) (16 149) Closing balance 79 312 40 040

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 205 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART E FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note 2019/20 2018/19 R’000 R’000 13. Departmental revenue and PRF Receipts to be surrendered to the Revenue Fund

Opening balance 94 060 66 061 Transfer from Statement of Financial Performance 1 180 549 1 049 328 Paid during the year (1 205 434) (1 021 329) Closing balance 69 175 94 060

14. Payables – current

Amounts owing to other entities 36 449 29 Clearing accounts 14.1 307 351 Total 36 756 380

The payables includes an amount of R36.4 million transferred by the Gauteng Growth and Development Agency (GGDA) an agency of the department at year-end which will be surrendered back to the Provincial Revenue Fund (PRF).

14.1 Clearing accounts 14

Sal: Income Tax 296 19 Sal: Pension Fund - 5 Sal: ACB Recall 11 327 Total 307 351

15. Payables – non-current

One to two Two to three More than Total Total years years three years

Note R’000 R’000 R’000 R’000 R’000

Amounts owing to other entities - 29 - 29 -

Municipal Deposits 15.1 - - 1 289 1 289 1 289

Total - 29 1 289 1 318 1 289

ANNUAL REPORT 206 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT FINANCIAL INFORMATION PARTPART EA

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note 2019/20 2018/19 R’000 R’000 15.1 Other payables 15

Municipal deposits 1 289 1 289 Total 1 289 1 289

16. Net cash flow available from operating activities

Net surplus for the year as per Statement of Financial Performance 1 259 861 1 089 368

Add back non cash/cash movements not deemed operating activities (1 185 326) (1 086 909)

(Increase)/decrease in receivables (2 212) 839 (Increase)/decrease in prepayments and advances 14 700 (10 126) Increase/(decrease) in payables – current 36 376 (56 433) Proceeds from sale of capital assets - (89) Expenditure on capital assets 11 284 16 378 Surrenders to Revenue Fund (1 245 474) (1 037 478) Net cash flow generated by operating activities 74 535 2 459

17. Reconciliation of cash and cash equivalents for cash flow purposes

Consolidated Paymaster General account 183 479 120 151 Cash on hand 20 20 Total 183 499 120 171

18. Contingent liabilities and contingent assets

18.1 Contingent liabilities

Claims against the department Annex 100 - 3B

Intergovernmental payables (unconfirmed balances) Annex 5 146 -

Total 246 -

19. Capital commitments

Machinery and Equipment 5 862 4 859

Total 5 862 4 859

In line with the 2019 Modified Cash Standard (MCS) Department is required and expected to only account and disclose the capital commitment, as a result the 2018/19 disclosed amount has been restated from R57,092 million to R4,859m.

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 207 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART E FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 20. Accruals and payables not recognised

20.1 Accruals

Listed by economic classification 30 Days 30+ Days Total Total Goods and services 6 204 4 983 11 187 8 481 Transfer and subsidies 2 800 - 2 800 - Capital Asset 74 16 90 - Salaries 625 548 1 173 - Total 9 703 5 547 15 250 8 481

Note 2019/20 2018/19 R’000 R’000 Listed by programme level 20 Administration 9 104 4 173 Business Regulations and Governance 360 352 Economic Planning 5 786 3 956

Total 15 250 8 481

The amount of R2 767 226 disclosed on the accrual above is the inter-departmental claim from GGB for the overpayment of gaming taxes and levies in the previous financial years.This amount was paid over by GGB to the department in the previous year through the principal-agent arrangement between the department and GGB.

The claim is as a result of the court ruling In favour of Hollywood Sportsbook Gauteng (Pty) Ltd (“the Plaintiff”) who issued summons against GGB (“the Defendant”) claiming a capital amount of R2 767 226 for overpayment of gaming taxes and levies due to an error in the wagering record keeping system. The plaintiff and the defendant entered into a settlement agreement in the High Court of South Africa on 11 June 2020 wherein the GGB is required to reimburse Hollywood Sportsbook Gauteng Ltd a capital claim of an amount of R2 767 226 (See attached settlement agreement).

20.2 Payables not recognised

Listed by economic classification 30 Days 30+ Days Total Total Goods and services 117 - 117 881 Transfers and subsidies - - - 16 Capital assets 6 - 6 - Other - - - 779 Total 123 - 123 1 676

ANNUAL REPORT 208 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT FINANCIAL INFORMATION PARTPART EA

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note 2019/20 2018/19 R’000 R’000 Listed by programme level Administration 123 1 025 Business Regulations and Governance - 114 Economic Planning - 537 Total 123 1 676

Included in the above totals are the following: Confirmed balances with other departments Annex 5 116 247 Confirmed balances with other government entities Annex 5 4 633 1 285

Total 4 749 1 532

21. Employee benefits

Leave entitlement 10 331 11 552 Service bonus 5 607 5 560 Performance awards 1 805 4 138 Capped leave 1 651 1 651 Long Service awards 101 83 SMS notch progression 477 - Early retirement provision 1 799 - SMS notch adjustment 26 - Total 21 797 22 984

At this stage the Department is not able to reliably measure the long term portion of the long service awards. The amount disclosed for leave entitlement above include negative current cycle leave rand value of R102 193,96.

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 209 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART E FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 22. Lease commitments

22.1 Operating leases

2019/20 Specialised Land Buildings Machinery Total military and other and equipment fixed equipment structures R’000 R’000 R’000 R’000 R’000 Not later than 1 year - - 47 481 8 121 55 602 Later than 1 year and not later than 5 years - - 173 317 3 766 177 083 Later than 5 years - - - - - Total lease commitments - - 220 798 11 887 232 685

2018/19 Specialised Land Buildings Machinery Total military and other and equipment fixed equipment structures

R’000 R’000 R’000 R’000 R’000 Not later than 1 year - - 51 163 13 501 64 664 Later than 1 year and not later than 5 years - - 19 451 5 352 24 803 Later than 5 years - - - - - Total lease commitments - - 70 614 18 853 89 467

Note 2019/20 2018/19 R’000 R’000 Rental earned on sub-leased assets 2 266 409 Total 266 409

Under Building and other fixed structures, it includes the lease commitments towards 124 Main street building which is sub-leased by the Department on behalf of it’s agencies and entity. The lease has two phases. Phase one and phase two with an annual escalation of 9%. The phase one lease contract expired in November 2019 and was running on month to month basis until 30 June 2020, the Phase 2 contract will expire on the 30th November 2020.

The department started the process of the renewal of the lease contract above in 2019 since Phase 1 contract already expired and the new lease agreement was accepted or signed by the Department before 31 March 2020. The new contract signed incorporate both Phase 1 from the end of month to month and Phase 2 from the end of November 2020. The annual escalation of the signed new lease contract is 6% annually.

ANNUAL REPORT 210 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT FINANCIAL INFORMATION PARTPART EA

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

22.2 Finance leases Specialised Land Buildings Machinery Total military and other and equipment fixed equipment 2019/20 structures R’000 R’000 R’000 R’000 R’000 Not later than 1 year - - - 5 094 5 094 Later than 1 year and not later than 5 years - - - 5 708 5 708 Later than 5 years - - - - - Total lease commitments - - - 10 802 10 802

Specialised Land Buildings Machinery Total military and other and equipment fixed equipment 2018/19 structures R’000 R’000 R’000 R’000 R’000 Not later than 1 year - - - 3 926 3 926 Later than 1 year and not later than 5 years - - - 4 019 4 019 Later than 5 years - - - - - Total lease commitments - - - 7 945 7 945

23. Accrued departmental revenue

Note 2019/20 2018/19

23.1 R’000 R’000

*Tax revenue 93 253 93 635 **Municipal Deposit debts 1 118 1 118 Cradle and Dinokeng 21 215 Total 94 392 94 968

*The accrued Departmental revenue includes the tax revenue for March 2020 receivable from Gauteng Gambling Board (GGB)

**The amount of R1,118m disclosed relates to the debts for the Land Appeal matters for Town Planning functions prior to being migrated to the Gauteng Office of the Premier (OoP). The process of transferring the amount is underway and is not yet finalised.

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 211 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART E FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note 2019/20 2018/19 R’000 R’000 23.1 Analysis of accrued departmental revenue 23

Opening balance 94 968 85 951 Less: amounts received (93 686) (84 833) Add: amounts recorded 93 110 93 850 Closing balance 94 392 94 968

24. Irregular expenditure

24.1 Reconciliation of irregular expenditure

Opening balance 71 354 70 221 Add: Irregular expenditure – relating to current year 24.2 160 1 133 Closing balance 71 514 71 354

Analysis of awaiting condonation per age classification

Current year 160 1 133 Prior years 71 354 70 221 Total 71 514 71 354

24.2 Details of current and prior year irregular expenditure – added current year (under determination and investigation) Incident Disciplinary steps taken/criminal proceedings Contravention of treasury regulation Operating lease N/A 160 Total 160

25. Fruitless and wasteful expenditure Reconciliation of fruitless and wasteful expenditure Opening balance 23 - Fruitless and wasteful expenditure – relating to prior year 25.1 3 336 - Fruitless and wasteful expenditure – relating to current year 25.1 1 360 23

Less: Amounts written off 25.2 (29) -

Closing balance 4 690 23

ANNUAL REPORT 212 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT FINANCIAL INFORMATION PARTPART EA

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

2019/20 2018/19 R’000 R’000 25.1 Details of current and prior year fruitless and wasteful expenditure – added current year (under determination and investigation)

Incident Disciplinary steps taken/criminal proceedings Re-designs of superblock building 3 330 Penalties and Interests paid to SARS for 2000/01 outstanding income tax 1 360 Non attendance of the course 6 Total 4 696

25.2 Details of fruitless and wasteful expenditure written off

Incident

Non attendance of the course 17 Non attendance of the course 12 Total 29

26. Related party transactions

Revenue received Tax revenue 1 286 008 1 127 327 Total 1 286 008 1 127 327

Payments made

Goods and services (8% commission paid to GGB) 110 372 82 695 Total 110 372 82 695

Year end balances arising from revenue/payments

Receivables from related parties 93 253 93 635 Payables to related parties 10 182 16 992 Total 103 435 110 627

In kind goods and services provided/received Security Services (Ga-Rankuwa hotel school) - 1 509 Total - 1 509

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 213 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART E FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

The amount of R1,509m disclosed under 2018/19 financial year relates to security services paid by the Department on behalf of the Ga-Rankuwa Hotel School. The security services during the 2019/20 was incurred by hotel school.

The list of entities and agencies directly reporting to the Gauteng Department of Economic Development are as follows:

- Gauteng Gambling Board (GGB) - Gauteng Growth and Development Agency (GGDA) - Gauteng Enterprise Propeller (GEP) - Gauteng Tourism Authority (GTA) - Cradle of Humankind World Heritage Site (Trading entity) - Dinokeng (Trading entity) - Gauteng Liquor Board (GLB) (Trading entity)

The Gauteng Department of Agricultrure and Rural Developmnent and the Gauteng Department of Economic Development report to the same MEC and falls under the same portfolio of the MEC for Economic Development, Agriculture and Enviroment.

GDED occupies a building that is leased by Gauteng Department of Infrastructure and Development which is a custodian of immovable property in the GPG however, the Department is responsible for the payment of the utility services.

27. Key management personnel 2019/20 2018/19 R’000 R’000 No. of Individuals

Political office bearers (provide detail below) 3 2 102 1 978 Officials: Level 15-16 7 8 122 7 379 Level 14 Including the CFO at lower level 12 13 195 18 366 Total 23 419 27 723

28. Provisions

Provision for doubtful debts Note 368 51 28.1

Total 368 51

28.1 Reconciliation of movement in provisions – 2019/20

Provision 1 Provision 2 Provision 3 Total provisions R’000 R’000 R’000 R’000 Opening balance 51 - - 51 Increase in provision 317 317 Closing balance 368 - - 368

ANNUAL REPORT 214 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT FINANCIAL INFORMATION PARTPART EA

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

28.2 Reconciliation of movement in provisions – 2018/19

Provision 1 Provision 2 Provision 3 Total provisions R’000 R’000 R’000 R’000 Opening balance 25 - - 25 Increase in provision 26 - - 26 Closing balance 51 - - 51

29. Movable Tangible Capital Assets

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020

Opening Value Additions Disposals Closing balance adjustments Balance R’000 R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT 56 028 - 11 326 (3 171) 64 183 Transport assets 424 - 949 (424) 949 Computer equipment 23 217 - 4 678 (2 148) 25 747 Furniture and office equipment 20 481 - 3 571 (487) 23 565 Other machinery and equipment 11 906 - 2 128 (112) 13 922

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 56 028 - 11 326 (3 171) 64 183

Movable Tangible Capital Assets under investigation Number Value R’000 Included in the above total of the movable tangible capital assets per the asset register are assets that are under investigation: Machinery and equipment 78 1 469

The total assets disclosed on the Note 29 above and the note 29.4 for minor assets, includes Maropeng A’ Africa Leisure (MAL) assets to the value of R8, 324m which were acquired during the existence of the PPP (Public Private Partnership) concession agreement.

A total number of 78 assets (59 unverified and 19 lost) reported under the investigation note could not be verified during the current financial year 100% physical assets verification process. The sub-directorate asset management will conduct internal enquiry for the 59 unverified assets to the value of R1,005m and the 19 lost assets R463k. The lost assets are still being investigated by the Directorate Security and Risk Management.

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 215 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART E FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

29.1 Additions

ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020 Cash Non-cash (Capital Received Total Work in current, not Progress paid current costs (Paid and finance current year, lease received payments) prior year) R’000 R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT 11 081 4 795 (4 173) (377) 11 326 Transport assets 4 173 949 (4 173) - 949 Computer equipment 4 426 252 - - 4 678 Furniture and office equipment 1 808 1 676 - 87 3 571 Other machinery and equipment 674 1 918 - (464) 2 128

TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS 11 081 4 795 (4 173) (377) 11 326

29.2 Disposals

DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020 Sold for cash Non-cash Total disposals Cash Received disposal Actual R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT 3 171 3 171 - Transport assets - 424 424 - Computer equipment - 2 148 2 148 - Furniture and office equipment - 487 487 - Other machinery and equipment - 112 112 -

TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS - 3 171 3 171 -

The amount disclosed as non cash disposal for Computer Equipments and Transport Assets includes the assets to be disposed through the auction. The department could not determine how much would be disposed as the cash disposal and as a results the total amount disclosed as non-cash disposal.

The disposal of the assets were authorised before 31 March 2020, however the process of the physical disposal of the assets has not yet taken place.

ANNUAL REPORT 216 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT FINANCIAL INFORMATION PARTPART EA

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

29.3 Movement for 2018/19

MOVEMENT IN TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2019 Opening Prior period Additions Disposals Closing Balance balance error R’000 R’000 R’000 R’000 R’000 MACHINERY AND EQUIPMENT 54 385 4 164 (2 521) 56 028 Transport assets 424 - - - 424 Computer equipment 21 494 - 2 309 (586) 23 217 Furniture and office equipment 20 118 - 554 (191) 20 481 Other machinery and equipment 12 349 - 1 301 (1 744) 11 906

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 54 385 - 4 164 (2 521) 56 028

29.4 Minor assets

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2020 Specialised Intangible Heritage Machinery Biological Total military assets assets and assets assets equipment R’000 R’000 R’000 R’000 R’000 R’000 Opening balance - - - 6 078 - 6 078 Additions - - - 4 031 - 4 031 Disposals - - - (153) - (153) TOTAL MINOR ASSETS - - - 9 956 - 9 956

Specialised Intangible Heritage Machinery Biological Total military assets assets and assets assets equipment Number of minor assets at cost - - - 2 563 - 2 563 TOTAL NUMBER OF MINOR ASSETS - - - 2 563 - 2 563

Minor Capital Assets under investigation Number Value Included in the above total of the minor capital assets per the asset register are assets that are under investigation: Machinery and equipment 4 6

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 217 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART E FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED AS AT 31 MARCH 2019 Specialised Intangible Heritage Machinery Biological Total military assets assets and assets assets equipment R’000 R’000 R’000 R’000 R’000 R’000

Opening balance - - - 6 810 - 6 810 Additions - - - 78 - 78 Disposals - - - (810) - (810) TOTAL MINOR ASSETS - - - 6 078 - 6 078

29.5 Movable assets written off

MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED AS AT 31 MARCH 2020 Specialised Intangible Heritage Machinery Biological Total military assets assets and assets assets equipment R’000 R’000 R’000 R’000 R’000 R’000

Assets written off - 308 - 3 325 - 3 633 TOTAL MOVABLE ASSETS WRITTEN OFF - 308 - 3 325 - 3 633

MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED AS AT 31 MARCH 2019 Specialised Intangible Heritage Machinery Biological Total military assets assets and assets assets equipment R’000 R’000 R’000 R’000 R’000 R’000

Assets written off - 46 - 3 331 - 3 377 TOTAL MOVABLE ASSETS WRITTEN OFF - 46 - 3 331 - 3 377

30. Intangible Capital Assets

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020 Opening Value Additions Disposals Closing Balance balance adjustments R’000 R’000 R’000 R’000 R’000

SOFTWARE 8 000 - 203 (308) 7 895 TOTAL INTANGIBLE CAPITAL ASSETS 8 000 - 203 (308) 7 895

ANNUAL REPORT 218 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT FINANCIAL INFORMATION PARTPART EA

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

30.1 Additions

ADDITIONS TO INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020 Cash Non-Cash (Developm- Received Total ent work current year, in progress not paid – current (Paid costs) current year, received prior year) R’000 R’000 R’000 R’000 R’000

SOFTWARE 203 - - - 203 TOTAL ADDITIONS TO INTANGIBLE CAPITAL ASSETS 203 - - - 203

30.2 Disposals

DISPOSALS OF INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2020 Sold for cash Non-cash Total Cash Received disposal disposals Actual R’000 R’000 R’000 R’000

SOFTWARE - 308 308 - TOTAL DISPOSALS OF INTANGIBLE CAPITAL ASSETS - 308 308 -

30.3 Movement for 2018/19 MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2019 Opening Prior period Additions Disposals Closing Balance balance error R’000 R’000 R’000 R’000 R’000

SOFTWARE 1 057 - 6 989 (46) 8 000 TOTAL INTANGIBLE CAPITAL ASSETS 1 057 - 6 989 (46) 8 000

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 219 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART E FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note 2019/20 2018/19 R’000 R’000 31. Principal-agent arrangements

31.1 Department acting as the principal

Gauteng Gambling Board (Commission paid) 110 372 82 695

Total 110 372 82 695

The Gauteng Gambling Board (GGB) perform agency service for the Gauteng Department of Economic Development (GDED) and it collects the casino taxes, horse racing taxes and bookmakers license fees on behalf of the department.

The GGB in return receives 8% commission of the total revenue collected.

32. Non-Adjusting events after reporting date Effect of Covid-19 Pandemic - -

The outbreak of the Covid-19 Pandemic does not have direct impact on the operations of the Department. However, the Department could not collect the gaming tax revenue from Gauteng Gambling Board to be surrendered to the Provincial Revenue Fund(PRF). The non-collection of gaming tax revenue is due to the restrictions on the gaming activities imposed during the lockdown period as the regulatory instruments put in place to manage and curb the spread of the Covid-19 Pandemic. There is no financial effects on the Department as the gaming tax revenue from GGB is not used to fund the Department, the Department solely collect and surrender the gaming tax revenue to PRF.

ANNUAL REPORT 220 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

UNAUDITED ANNEXURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 ANNEXURE 1B STATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS

DEPARTMENTAL AGENCY/ ACCOUNT TRANSFER ALLOCATION 2019/20 TRANSFER 2019/20 2018/19 % of Adjusted Roll Total Actual Available Final Appro- Adjustments Appropriation Overs Available Transfer funds priation Transferred R’000 R’000 R’000 R’000 R’000 % R’000 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT

Gauteng Growth and Development Agency 636 813 - - 636 813 636 813 100 628 162 Gauteng Tourism Authority 118 779 - - 118 779 118 779 100 120 228 Gauteng Enterprise Propeller 245 771 - - 245 771 245 771 100 242 689 Cradle of Humankind 76 823 - - 76 823 76 823 100 70 554 Dinokeng 37 658 - - 37 658 37 658 100 39 056 Gauteng Liquor Board 26 352 - - 26 352 26 352 100 25 871 Gauteng Gambling Board 33 391 - - 33 391 33 391 100 -

ANNUAL REPORT TOTAL 1 175 587 - - 1 175 587 1 175 587 100 1 126 560 221 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

UNAUDITED ANNEXURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 ANNEXURE 1G STATEMENT OF TRANSFERS TO HOUSEHOLDS

HOUSEHOLDS TRANSFER ALLOCATION 2019/20 EXPENDITURE 2019/20 2018/19 % of Adjusted Roll Total Actual Available Final Appropriation Adjustments Overs Available Transfer funds Appropriation Act Transferred GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT R’000 R’000 R’000 R’000 R’000 % R’000 Transfers H/H:Leave Gratuity - - 646 646 646 100 688 - - 646 646 646 100 688 TOTAL - - 646 646 646 100 688 ANNUAL REPORT 222 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 222

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

UNAUDITED ANNEXURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 ANNEXURE 2A STATEMENT OF INVESTMENTS IN AND AMOUNTS OWING BY/TO NATIONAL/PROVINCIAL PUBLIC ENTITIES

Number of shares Net Asset value of Profit/(Loss) for the State Entity’s Cost of investment held investment year Losses PFMA Schedule Name of Public % Held guaranteed type (state R’000 R’000 R’000 Entity 2019/20 year end if not % Held 31 March) 2019/20 2018/19 2019/20 2018/19 2019/20 2018/19 2019/20 2018/19 Yes/No

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT 2018/19

Blue IQ (PTY) LTD 100% 100% 4 000 4 000 1 1 4 4 - - t/a GGDA

Subtotal 100% 100% 4 000 4 000 1 1 4 4 - -

TOTAL 100% 100% 4 000 4 000 1 1 4 4 - -

ANNUAL REPORT 223 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

UNAUDITED ANNEXURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 ANNEXURE 3B STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2020

NATURE OF LIABILITY Opening Liabilities Liabilities Liabilites Closing balance incurred paid/ recoverable balance 1 April 2019 during the cancelled/ (Provide 31 March year reduced details 2020 during the hereunder)

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT year R’000 R’000 R’000 R’000 R’000 Claims against the department Labour matters - 100 - - 100 Subtotal - 100 - - 100

TOTAL - 100 - - 100 ANNUAL REPORT 224 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 224

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

UNAUDITED ANNEXURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 ANNEXURE 4 CLAIMS RECOVERABLE

Government Entity Confirmed balance Unconfirmed balance Cash in transit at year end outstanding outstanding Total 2019/20 Receipt date up to six (6) working days after 31/03/2020 31/03/2019 31/03/2020 31/03/2019 31/03/2020 31/03/2019 year end Amount GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT R’000 R’000 R’000 R’000 R’000 R’000 R’000 Department Gauteng Department of Human Settlement 71 - - - 71 - - - Gauteng Office of the Premier 83 - - - 83 - - - Gauteng Department of Cooperative 264 - - - 264 - - - Governance and Traditional affairs Gauteng Department of Agriculture and 397 - - - 397 - - - Rural Development 815 - - - 815 - - - ANNUAL REPORT 225 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

UNAUDITED ANNEXURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 ANNEXURE 4

Other Government Entities Gauteng Liquor Board 311 144 - - 311 144 Cradle of Humankind 821 - - 92 821 92 Dinokeng 445 - - 86 445 86 Gauteng Tourism Authority 92 - - - 92 - GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Gauteng Enterprise Propeller 159 - - - 159 - Gauteng Gambling Board - - 71 - 71 -

Subtotal 1 828 144 71 178 1 899 322 TOTAL 2 643 144 71 178 2 714 322 ANNUAL REPORT 226 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT ANNUAL REPORT 226

GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

UNAUDITED ANNEXURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 ANNEXURE 5 INTER-GOVERNMENT PAYABLES

GOVERNMENT ENTITY Confirmed balance Unconfirmed balance Cash in transit at year end outstanding outstanding TOTAL 2019/20 * Payment date up to six (6) working days before GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT 31/03/2020 31/03/2019 31/03/2020 31/03/2019 31/03/2020 31/03/2019 year end Amount R’000 R’000 R’000 R’000 R’000 R’000 R’000 DEPARTMENTS Current Gauteng Office of the premier 63 - - - 63 - - - Limpopo Department of Agriculture and - 3 - - - 3 - - Rural Development

Department of Small Business Enterprise - 47 - - - 47 - -

ANNUAL REPORT Gauteng Department of Cooperative 53 - - - 53 - Governance and Traditional Affairs Department of Justice - - 146 - 146 - - - Department of Trade and Industry - 197 - - - 197 - - Subtotal 116 247 146 - 262 247 TOTAL DEPARTMENTS 116 247 146 - 262 247 - - 227 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT PART D FINANCIAL INFORMATION

UNAUDITED ANNEXURES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 ANNEXURE 5

OTHER GOVERNMENT ENTITY Current G-Fleet 808 657 - - 808 657 World Heritage Site 1 058 532 - - 1 058 532 Government Printing - 96 - - - 96 GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Gauteng Gambling Board 2 767 - - - 2 767 - Subtotal 4 633 1 285 - - 4 633 1 285 TOTAL OTHER GOVERNMENT ENTITY 4 633 1 285 - - 4 633 1 285 TOTAL INTERGOVERNMENT PAYABLES 4 749 1 532 146 - 4 895 1 532 ANNUAL REPORT 228 GAUTENG LIQUOR BOARD FINANCIAL INFORMATION PARTPART EA

TABLE OF CONTENTS

REPORT OF THE AUDITOR-GENERAL 230

STATEMENT OF FINANCIAL POSITION 232

STATEMENT OF FINANCIAL PERFORMANCE 233

STATEMENT OF CHANGES IN NET ASSETS 234

CASH FLOW STATEMENT 235

NOTES TO THE ANNUAL FINANCIAL STATEMENTS (INCLUDING ACCOUNTING POLICIES) 236

ANNUAL REPORT ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 228 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 229 GAUTENG LIQUOR BOARD PART E FINANCIAL INFORMATION

REPORT OF THE AUDITOR-GENERAL TO THE GAUTENG PROVINCIAL LEGISLATURE ON VOTE NO. 3: GAUTENG LIQUOR BOARD

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS Opinion 1. I have audited the financial statements of the Gauteng PFMA, and for such internal control as the accounting officer Liquor Board set out on pages 232 to 262, which comprise determines is necessary to enable the preparation of financial the statement of financial position as at 31 March 2020, the statements that are free from material misstatement, whether statement of financial performance, statement of changes in due to fraud or error. net assets and cash flow statement for the year then ended, as well as the notes to the financial statements, including a 9. In preparing the financial statements, the accounting officer summary of significant accounting policies. is responsible for assessing the trading entity’s ability to continue as a going concern, disclosing, as applicable, matters 2. In my opinion, the financial statements present fairly, in relating to going concern and using the going concern basis all material respects, the financial position of the Gauteng of accounting unless the appropriate governance structure Liquor Board as at 31 March 2020, and its financial either intends to liquidate the trading entity or to cease performance and cash flows for the year then ended in operations, or has no realistic alternative but to do so. accordance with Generally Recognised Accounting Practise (SA Standard of GRAP) and the requirements of the Public Auditor-general’s responsibilities for the audit of the financial Finance Management Act of South Africa, 1999 (Act No 1 of statements 1999) (PFMA). 10. My objectives are to obtain reasonable assurance about Basis for opinion whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, 3. I conducted my audit in accordance with the International and to issue an auditor’s report that includes my opinion. Standards on Auditing (ISAs). My responsibilities under those Reasonable assurance is a high level of assurance, but is standards are further described in the auditor-general’s not a guarantee that an audit conducted in accordance with responsibilities for the audit of the financial statements the ISAs will always detect a material misstatement when it section of this auditor’s report. exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could 4. I am independent of the trading entity in accordance with reasonably be expected to influence the economic decisions sections 290 and 291 of the Code of ethics for professional of users taken on the basis of these financial statements. accountants and parts 1 and 3 of the International Code of Ethics for Professional Accountants (including International 11. A further description of my responsibilities for the audit of Independence Standards) of the International Ethics Standards the financial statements is included in the annexure to this Board for Accountants (IESBA codes) as well as the ethical auditor’s report. requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance REPORT ON THE AUDIT OF THE ANNUAL PERFORMANCE REPORT with these requirements and the IESBA codes. 12. In terms of section 40(3)(a) of the PFMA, the trading entity 5. I believe that the audit evidence I have obtained is sufficient is required to prepare an annual performance report. The and appropriate to provide a basis for my opinion. performance information of the trading entity was reported in the annual performance report of Gauteng Department Emphasis of matter of Economic Development. The usefulness and reliability of 6. I draw attention to the matter below. My opinion is not the reported performance information was tested as part of modified in respect of this matter. the audit of Gauteng Department of Economic Development and any audit findings are included in the management Material uncertainty and auditor’s reports of Gauteng Department of Economic Development. 7. As disclosed in note 27 to the financial statements, which deals with events after reporting date; management have REPORT ON THE AUDIT OF COMPLIANCE WITH LEGISLATION disclosed the implications of Covid-19 on entity’s future prospects, performance and cash flows. Management have Introduction and scope also described how they plan to deal with these events and 13. In accordance with the PAA and the general notice issued circumstances. in terms thereof, I have a responsibility to report material findings on the trading entity’s compliance with specific Responsibilities of the accounting officer for the financial state- matters in key legislation. I performed procedures to identify ments findings but not to gather evidence to express assurance. 8. The accounting officer is responsible for the preparation and fair presentation of the financial statements in accordance 14. The material finding on compliance with specific matters in with SA Standards of GRAP and the requirements of the key legislations is as follows:

ANNUAL REPORT 230 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG LIQUOR BOARD FINANCIAL INFORMATION PARTPART EA

Expenditure Management 19. If based on the work I have performed, I conclude that there 15. Effective and appropriate steps were not taken to prevent is a material misstatement in this other information, I am irregular expenditure amounting to R8 360 000, as disclosed required to report that fact. I have nothing to report in this in note 29 to the annual financial statements, as required by regard. section 38(1 )(c)(ii) of the PFMA and treasury regulation 9.1.1. The majority of the irregular expenditure was caused by INTERNAL CONTROL DEFICIENCIES variation of lease contracts exceeding 15% without Treasury 20. I considered internal control relevant to my audit of the approval. financial statements and compliance with applicable legislation; however, my objective was not to express any OTHER INFORMATION form of assurance on it. The matters reported below are 16. The accounting authority is responsible for the other limited to the significant internal control deficiencies that information. The other information comprises the information resulted in the findings on compliance with legislation included in the annual report. The other information does not included in this report. include the financial statements and the auditor’s report. 21. Senior management did not adequately ensure that their 17. My opinion on the financial statements and compliance with responsibilities are performed as outlined in the PFMA to legislation do not cover the other information and I do not mitigate the risk of non-compliance with laws and regulations. express an audit opinion or any form of assurance conclusion thereon.

18. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

Johannesburg 30 September 2020

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 231 GAUTENG LIQUOR BOARD PART E FINANCIAL INFORMATION

STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2020

Note(s) 2019/20 2018/19 Restated* R R’000 R’000

Assets Current Assets Receivables from exchange transactions 2 282 155 Receivables from non-exchange transactions 3 172 353 Prepayment 4 - 106 Cash and cash equivalents 5 30 294 9 820 30 748 10 434 Non-Current Assets

Property, plant and equipment 6 451 592 Total Assets 31 199 11 026 Liabilities

Current Liabilities

Payables from exchange transactions 7 37 417 33 793 Provisions 8 1 086 1 278 Total Current Liabilities 38 503 35 071 Total Liabilities 38 503 35 071 Net Assets (7 304) (24 045) Accumulated Defiicit (7 304) (24 045)

ANNUAL REPORT 232 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG LIQUOR BOARD FINANCIAL INFORMATION PARTPART EA

STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2020

Note(s) 2019/20 2018/19 Restated* R R’000 R’000

Revenue Revenue from exchange transactions Licences and permits 11 66 517 63 942 Rental of parking 10 42 37 Recoveries 10 3 - Garnishee order 10 14 14 Interest received - bank 12 914 456 Total revenue from exchange transactions 67 490 64 449 Revenue from non-exchange transactions Transfer revenue Government grants & subsidies 13 26 352 25 871 Fines, penalties and forfeits 14 2 945 2 839 Total revenue from non-exchange transactions 29 297 28 710 Total revenue 9 96 787 93 159 Expenditure Employee related costs 15 (52 889) (52 257) Depreciation and amortisation 16 (111) (191) Loss on disposal of assets (30) (23) Impairment loss: penalty (644) (1 105) Bad debt (447) (1 800) Goods and services 17 (25 925) (36 166) Total expenditure (80 046) (91 542) Surplus for the year 16 741 1 617

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 233 GAUTENG LIQUOR BOARD PART E FINANCIAL INFORMATION

STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED 31 MARCH 2020

Note(s) 2019/20 2018/19 Accumulated Total net assets Defiicit R’000 R’000

Balance at 01 April 2018 Changes in net assets (25 662) (25 662) Surplus/(Deficit) for the year 1 617 1 617 Total changes 1 617 1 617 Opening balance as previously reported Adjustments (22 798) (22 798) Correction of errors (1 247) (1 247) Restated* Balance at 01 April 2019 as restated* (24 045) (24 045) Changes in net assets Surplus/(Deficit) for the year 16 741 16 741 Total changes 16 741 16 741 Balance at 31 March 2020 (7 304) (7 304)

ANNUAL REPORT 234 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG LIQUOR BOARD FINANCIAL INFORMATION PARTPART EA

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2020

Note(s) 2019/20 2018/19 Restated* R R’000 R’000

Cash flows from operating activities Receipts Licence fees 69 171 65 251 Government grants and subsidies 26 352 25 872 Interest income 914 456 Garnishee order & Parking rentals 59 51 Fines & penalties 3 126 4 247 99 622 95 877 Payments Compensation of employees (52 556) (52 459) Goods and services (26 592) (42 105) Prior years surpluses surrendered to Provincial revenue fund - (8 171) (79 148) (102 735) Net cash flows from operating activities 18 20 474 (6 858) Cash flows from investing activities Purchase of property, plant and equipment 6 - (210) Net increase/(decrease) in cash and cash equivalents 20 474 (7 068) Cash and cash equivalents at the beginning of the year 9 820 16 888 Cash and cash equivalents at the end of the year 5 30 294 9 820

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 235 GAUTENG LIQUOR BOARD PART E FINANCIAL INFORMATION

ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2020 1. Presentation of Annual Financial Statements

The annual financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP), issued by the Accounting Standards Board in accordance with Section 91(1) of the Public Finance Management Act (Act 1 of 1999).

These annual financial statements have been prepared on an accrual basis of accounting and are in accordance with historical cost convention as the basis of measurement, unless specified otherwise.

In the absence of an issued and effective Standard of GRAP, accounting policies for material transactions, events or conditions were developed in accordance with paragraphs 8, 10 and 11 of GRAP 3 as read with Directive 5.

As Gauteng Liquor Board (GLB) has the responsibility of issuing the liquor licences and monitoring and enforcing compliance to the Gauteng Liquor Amendment Act, the significant accounting policies relate to revenue recognition, employee related costs, properties expenses related to the running of offices in major centres in Gauteng.

Presentation of Budget Information

The presentation of budget information that is required to be prepared in accordance with GRAP 24 and guidelines issued by National Treasury. The entity does not need the requirement to disclose the budget information due to its budget not being published and due to the fact that its budget is incorporated in the Gauteng Department of Economic Development vote.

A summary of the significant accounting policies, which have been consistently applied in the preparation of these annual financial statements, are disclosed below.

1.1 Presentation currency These annual financial statements are presented in South African Rand, which is the functional currency of the entity.

1.2 Going concern assumption These annual financial statements have been prepared based on the expectation that the entity will continue to operate as a going concern for at least the next 12 months.

1.3 Significant judgements and sources of estimation uncertainty In preparing the annual financial statements, management is required to make estimates and assumptions that affect the amounts represented in the annual financial statements and related disclosures. Use of available information and the application of judgement is inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the annual financial statements. Significant judgements include:

Provisions for employee related costs

Performance bonus Provision for performance bonus is calculated at 0.75% of a total compensation for all staff members. The bonus liability is paid to qualifying employees based on performance award policy and the bonus is anticipated to be paid within 6 to 12 months.

Provision for capped leave Provision for capped leave is the leave accrued until 30 June 2000 and was audited, calculated and capped (i.e not forfeited).

The capped leave increases annually as the gross basis salaries adjusted, also when an entitled employee get promotion and the new appointees with the capped leave also affect the decrease. The cash value payable in respect of personnel with capped and audited leave credits is determined using formula included in the DPSA guide:

Determination on leave of absence in the public service, 2008.

Any unused capped leave shall be utilised where an employee have insuffiecient annual leave days; or paid out in the

ANNUAL REPORT 236 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG LIQUOR BOARD FINANCIAL INFORMATION PARTPART EA

ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2020 event of death or retirement.

Provision for long service awards Provision of long service awards calculation is based on the DPSA calculation.

Revenue Recognition Accounting policy on revenue from non-exchange transactions and accounting policy on revenue from exchange transactions describes the conditions under which revenue will be recognised by management of the entity.

In making their judgement, management considered the detailed criteria for the recognition of revenue as set out in GRAP 9: Revenue from exchange transactions and GRAP 23: Revenue from non exchange transactions:

1.4 Property, plant and equipment

Property, plant and equipment are tangible non-current assets that are held for use in the production or supply of goods or services, rental to others, or for administrative purposes, and are expected to be used during more than one period.

The cost of an item of property, plant and equipment is recognised as an asset when:

■■ it is probable that future economic benefits or service potential associated with the item will flow to the entity; and ■■ the cost of the item can be measured reliably. Property, plant and equipment is initially measured at cost.

Property, plant and equipment is initially measured at cost. The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts and rebates are deducted in arriving at the cost.

Property, plant and equipment is subsequently carried at cost less accumulated depreciation and any impairment losses. Depreciation is charged so as to allocate the cost of assets less their residual values over their estimated useful lives, using the straight- line method. Management expects to abandon the assets at the end of their useful lives and therefore the residual values are estimated to be negligible. Useful lives and residual values are assessed when there is an indication that there is a change in useful life.

Depreciation is a systematic allocation of the depreciable value of the asset over its useful life.

Item Depreciation method Average useful life Furniture and fixtures Straight line 5-10 years Computer equipment Straight line 3-5 years

Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.

Impairment is a loss in the future economic benefits or service potential of an asset, over and above the systematic rec- ognition of the loss of the asset’s future economic benefits or service potential through depreciation. Impairment loss is the amount by which the carrying amount of an asset exceeds its recoverable amount and is charged against the surplus or deficit.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

Subsequent expenditure incurred on items of property, plant and equipment is only capitalised to the extent that such expenditure meets the definition and recognition criteria of an asset. Repairs and maintenance not deemed to enhance the economic benefits or service potential of items of property, plant and equipment are expensed as incurred.

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 237 GAUTENG LIQUOR BOARD PART E FINANCIAL INFORMATION

ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2020

Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economic benefits or service potential expected from the use of the asset.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount of the asset and are recognised in surplus or deficit in the period of disposal.

1.5 Financial instruments Initial recognition and measurement

Financial instruments are recognised when Gauteng Liquor Board becomes a party to the contractual provisions of the relevant instrument, and are initially measured at fair value. Subsequent to initial recognition, these instruments are measured at amortised cost.

Offsetting Financial assets and financial liabilities are not offset in the Statement of Financial Position.

Financial assets Financial Assets comprise mainly of receivable from overdue licences and penalty debt arising from licences/ permits issued.

Financial assets are recognised initially at fair value and subsequently measured at amortised cost less provision for impairment. A provision for impairment is established when there is objective evidence that the entity will not be able to collect the amount due.

Financial liabilities Financial liabilities comprise mainly of income received in advance for licences, trade payables and provisions for employee benefits.

Financial liabilities are recognised initially at fair value and subsequently measured at amortised cost.

Statutory receivables are receivables that arise from legislation, supporting regulations, or similar means, and require settlement by another entity in cash or another financial asset.

Carrying amount is the amount at which an asset is recognised in the statement of financial position.

The cost method is the method used to account for statutory receivables that requires such receivables to be measured at their transaction amount, plus any accrued interest or other charges (where applicable) and, less any accumulated impairment losses and any amounts derecognised.

Nominal interest rate is the interest rate and/or basis specified in legislation, supporting regulations or similar means.

The transaction amount (for purposes of this Standard) for a statutory receivable means the amount specified in, or calculated, levied or charged in accordance with, legislation, supporting regulations, or similar means.

1.6 Employee benefits

Short-term employee benefits Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled within twelve months after the end of the period in which the employees render the related service.

The cost of short term employee benefits are expensed in the statement of financial performance in the year in which it occurs.

Short term employee benefits that gives rise to a present or constructive obligations are recognised and disclosed in the notes to the financial statements. This is limited to leave pay accrual and service bonus.

ANNUAL REPORT 238 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG LIQUOR BOARD FINANCIAL INFORMATION PARTPART EA

ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2020

Short-term employee benefits include items such as:

■■ salaries and social security contributions ■■ short-term compensated absences (such as paid annual leave and paid sick leave) where the compensation for the absences is due to be settled within twelve months after the end of the reporting period in which the employees render the related employee service; ■■ bonus, incentive and performance related payments payable within twelve months after the end of the reporting period in which the employees render the related service; and ■■ non-monetary benefits (for example, medical care, and free or subsidised goods or services such as housing, cars and cellphones) for current employees.

Termination benefits such as severance packages are recognised as an expense in the statement of financial performance.

The entity recognise the expected cost of bonus, incentive and performance related payments when the entity has a present legal or constructive obligation to make such payments as a result of past events and a reliable estimate of the obligation can be made. A present obligation exists when the entity has no realistic alternative but to make the payments.

1.7 Revenue from exchange transactions Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in net assets, other than increases relating to contributions from owners.

An exchange transaction is one in which the entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange.

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

Measurement Revenue is measured at the fair value of the consideration received or receivable, net of trade discounts and volume rebates.

Licence fees The main income of the Gauteng Liquor Board consists of licence fees which are received in terms of the Gauteng Liquor Act No.2 of 2003 and Regulations. Licence fees is levied in terms of the Gauteng Liquor Act for different types of liquor permits. Permits are valid for only one year from the date of issue except for an occasional liquor licence. Revenue from licence fees is recognised on an accrual basis in accordance with the term of the licence conditions and the Gauteng Liquor Act. Where the amount received on or before year end include the amount received in advance for the following financial year, that portion reduces the revenue for the year and the said amount is recognised as income received in advance under current liability.

Interest income Interest income is recognised on a time proportionate basis using the effective interest rate method.

Revenue arising from the use by others of entity assets yielding interest, royalties and dividends or similar distributions is recognised when:

■■ It is probable that the economic benefits or service potential associated with the transaction will flow to the entity, and ■■ The amount of the revenue can be measured reliably.

Other income Other income is recognised when it is probable that future economic benefits will flow to the GLB and when the amount can be measured reliably.

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 239 GAUTENG LIQUOR BOARD PART E FINANCIAL INFORMATION

ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2020 1.8 Revenue from non-exchange transactions

Government grant Gauteng Liquor Board received a government grant in a form of a transfer from the Gauteng Department of Economic Development to cover operational costs, mainly employee costs. The transfer is recognised when it is probable that future economic benefits will flow to the Gauteng Liquor Board and when the amount can be reliably measured.

Services in kind Where services in-kind are not significant to the entity’s operations and/or service delivery objectives and/or do not satisfy the criteria for recognition, the entity disclose the nature and type of services in-kind during the reporting period.

Gauteng Liquor Board makes use of the following services at no cost. The costs are incurred by the Gauteng Department of Economic Development:

■■ Cellphone costs; ■■ Corporate services, financial services and human resource services; and ■■ Rental costs for regional offices.

Penalty fees. Penalties are charged on late renewals of licences. Penalty shall be recognised in accordance with the Gauteng Liquor Act when the penalty is due as follows:

Penalty period from renewal Penalty (% of licence renewal fees) 1 month 50% 2 months 100%

When the entity collects fines in the capacity of an agent, the fine will not be revenue of the collecting entity.

1.9 Comparative Information When the presentation or classification of items in the financial statements is amended, prior period comperative amounts are restated, unless a statement of GRAP does not require the restatements of comperative information. The nature and reasons for the reclassification is disclosed. Where material accounting errors have been identified in the current year, the correction is made retrospectively as far as it is practicable, and the prior year comperatives are restated accordingly. Where there has been a change in accounting policy in the current year, the adjustment is made restrospectively as far as it is practicable, and the prior year comperatives are restated accordingly.

1.10 Fruitless and wasteful expenditure Fruitless expenditure means expenditure which was made in vain and would have been avoided had reasonable care been exercised.

All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the statement of financial performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.

1.11 Irregular expenditure Irregular expenditure as defined in section 1 of the PFMA is expenditure other than unauthorised expenditure, incurred in contravention of or that is not in accordance with a requirement of any applicable legislation, including:

a) this Act; or b) the State Tender Board Act, 1968 (Act No. 86 of 1968), or any regulations made in terms of the Act; or c) any provincial legislation providing for procurement procedures in that provincial government.

National Treasury practice note no. 4 of 2008/2009 which was issued was repealed and replaced by irregular expenditure framework that came into effect 1 December 2018 in terms of sections 76(1) to 76(4) of the PFMA requires the following:

ANNUAL REPORT 240 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG LIQUOR BOARD FINANCIAL INFORMATION PARTPART EA

ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2020

Irregular expenditure that was incurred and identified during the current financial year and which was condoned before year end and/or before finalisation of the financial statements must also be recorded appropriately in the irregular expenditure register. In such an instance, no further action is also required with the exception of updating the note to the financial statements.

Irregular expenditure that was incurred and identified during the current financial year and for which condonement is being awaited at year end must be recorded in the irregular expenditure register. No further action is required with the exception of updating the note to the financial statements.

Where irregular expenditure was incurred in the previous financial year and is only condoned in the following financial year, the register and the disclosure note to the financial statements must be updated with the amount condoned.

Irregular expenditure that was incurred and identified during the current financial year and which was not condoned by the National Treasury or the relevant authority must be recorded appropriately in the irregular expenditure register. If liability for the irregular expenditure can be attributed to a person, a debt account must be created if such a person is liable in law. Immediate steps must thereafter be taken to recover the amount from the person concerned. If recovery is not possible, the accounting officer or accounting authority may write off the amount as debt impairment and disclose such in the relevant note to the financial statements. The irregular expenditure register must also be updated accordingly. If the irregular expenditure has not been condoned and no person is liable in law, the expenditure related thereto must remain against the relevant programme/expenditure item, be disclosed as such in the note to the financial statements and updated accordingly in the irregular expenditure register.

Irregular expenditure is accounted for as expenditure in the Statement of Financial Performance and where recovered, it is subsequently accounted for as revenue in the Statement of Financial Performance.

1.12 Events after reporting date Events after reporting date are those events, both favourable and unfavourable, that occur between the reporting date and the date when the financial statements are authorised for issue. Two types of events can be identified:

■■ those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date); and ■■ those that are indicative of conditions that arose after the reporting date (non-adjusting events after the reporting date).

The entity will adjust the amount recognised in the financial statements to reflect adjusting events after the reporting date once the event occurred.

The entity will disclose the nature of the event and an estimate of its financial effect or a statement that such estimate cannot be made in respect of all material non-adjusting events, where non-disclosure could influence the economic decisions of users taken on the basis of the financial statements.

1.13 Leases

Operating leases A lease is classified as operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

Operating lease payments are recognised as an expense over the lease term according to the agreed payment basis. Lease commitments of future minimum lease payments for operating leases are disclosed in the financial statements.

1.14 Related parties The entity has adopted the disclosure requirements as per GRAP 20: Related Party Disclosures.

A related party is a person or an entity with the ability to control or jointly control the other party, or exercise significant influence over the other party, or vice versa, or an entity that is subject to common control, or joint control.

Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 241 GAUTENG LIQUOR BOARD PART E FINANCIAL INFORMATION

ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2020

Related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party, regardless of whether a price is charged.

Significant influence is the power to participate in the financial and operating policy decisions of an entity, but is not control over those policies.

Management are those persons responsible for planning, directing and controlling the activities of the entity, including those charged with the governance of the entity in accordance with legislation, in instances where they are required to perform such functions.

Close members of the family of a person are considered to be those family members who may be expected to influence, or be influenced by, that management in their dealings with the entity.

An entity shall disclose the remuneration of management per person and in aggregate, for each class of management remuneration.

The entity is exempt from disclosure requirements in relation to related party transactions if that transaction occurs within normal supplier and/or client/recipient relationships on terms and conditions no more or less favourable than those which it is reasonable to expect the entity to have adopted if dealing with that individual entity or person in the same circumstances and terms and conditions are within the normal operating parameters established by that reporting entity’s legal mandate.

Where the entity is exempt from the disclosures in accordance with the above, the entity discloses narrative information about the nature of the transactions and the related outstanding balances, to enable users of the entity’s financial statements to understand the effect of related party transactions on its annual financial statements.

1.15 Standards, Amendments to Standards and interpretations issued, but not yet effective The following GRAP standards have been issued but not yet effective and have been adopted by the entity:

GRAP 104: Financial Instruments

The objective of this Standard is to establish principles for recognising, measuring, presenting and disclosing financial instruments.

The effective date of the standard is 1 April 2020. It is unlikely that the standard will have a material impact on the entity’s annual financial statements.

ANNUAL REPORT 242 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG LIQUOR BOARD FINANCIAL INFORMATION PARTPART EA

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note 2019/20 2018/19 R’000 R’000 2. Receivables from exchange transactions

Recoveries of staff expense 144 48 Overdue licence renewal fees 179 145 Provision for bad debts (41) (38) 282 155 Trade and other receivables past due but not impaired The ageing of amounts past due but not impaired is as follows: Current (0-30 days) 125 46 31 - 60 days 152 87 61 - 90 days - 3 91 - 120 days - - 120 and above 5 19

3. Receivables from non-exchange transactions

Penalties 815 1 456 PAYE 1 2 Impairment of penalties on licence renewal fees (644) (1 105) 172 353 Receivables from non-exchange transactions past due but not impaired The ageing of amounts past due but not impaired is as follows: 1 month past due 172 353 Reconciliation of provision for impairment of trade and other receivables Opening balance 1 105 234 Provision for impairment 644 1 105 Provision Utilised (1 105) (234) 644 1 105

4. Prepayments

Payments made in advance as per the contract - 106

5. Cash and cash equivalents Cash and cash equivalents consist of: Bank balances 30 294 9 820

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 243 GAUTENG LIQUOR BOARD PART D FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Figures in Rand thousand

6. Property, plant and equipment

2020 2019 Cost / Accumulated Carrying Cost / Accumulated Carrying Valuation depreciation value Valuation depreciation value GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT and and accumulated accumulated impairment impairment Furniture and fixtures 1 267 (1 029) 238 1 340 (1 041) 299 IT equipment 1 163 (950) 213 1 716 (1 423) 293 Total 2 430 (1 979) 451 3 056 (2 464) 592 Reconciliation of property, plant and equipment - 2020 Opening Disposals Depreciation Total balance Furniture and fixtures 299 (5) (56) 238 ANNUAL REPORT IT equipment 293 (25) (55) 213 592 (30) (111) 451 Reconciliation of property, plant and equipment - 2019 Opening Additions Disposals Depreciation Total balance Furniture and fixtures 370 - (3) (68) 299 IT equipment 227 210 (21) (123) 293

244 597 210 (24) (191) 592 GAUTENG LIQUOR BOARD FINANCIAL INFORMATION PARTPART EA

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note(s) 2019/20 2018/19 R’000 R’000 7. Payables from exchange transactions

Trade Payables 2 258 1 940 Pension Recoverable 5 5 PAYE - 198 Service bonus accrual ** 1 212 1 190 Income received in advance 31 409 28 628 Staff leave accrual 2 486 1 832 SAL: Abc Recalls 47 - 37 417 33 793

8. Provisions

Reconciliation of provisions - 2020 Opening Additions Reversed Total Balance during the year Provision for performance bonus 680 357 (587) 450 Provision for capped leave 598 38 - 636 1 278 395 (587) 1 086 Reconciliation of provisions - 2019 Opening Additions Reversed Provision Total Balance during the utilised year Provision for performance bonus 626 680 (247) (379) 680

Provision for capped leave 586 12 - - 598 1 212 692 (247) (379) 1 278

9. Revenue

Licences and Permits 66 517 63 942 Rental of Parking 42 37 Recoveries 3 - Garnishee order 14 14 Interest received - bank 914 456 Government grants & subsidies 26 352 25 871 Fines, Penalties and Forfeits 2 945 2 839 96 787 93 159

ANNUAL REPORT ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 244 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 245 GAUTENG LIQUOR BOARD PART E FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note(s) 2019/20 2018/19 R’000 R’000 The amount included in revenue arising from exchanges of goods or services are as follows: Licences and Permits (refer to note 11) 66 517 63 942 Rental of Parking (refer to note 10) 42 37 Recoveries (refer to note 10) 3 - Garnishee order (refer to note 10) 14 14 Interest received - bank (refer to note 12) 914 456 67 490 64 449

The amount included in revenue arising from non-exchange transactions is as follows: Taxation revenue Transfer revenue

Government grants & subsidies 26 352 25 871

Fines, Penalties and Forfeits 2 945 2 839 29 297 28 710

10. Other revenue

Rental Parking 42 37 Recoveries 3 - Garnishee order 14 14 59 51

ANNUAL REPORT 246 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG LIQUOR BOARD FINANCIAL INFORMATION PARTPART EA

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note(s) 2019/20 2018/19 R’000 R’000 11. Licences and permits (exchange)

The Gauteng Liquor Board is responsible for regulating liquor trading in Gauteng and also responsible for the collection of licence fees in terms of the Gauteng Liquor Act and Regulations. The main sources of revenue are as follows:

Activations 2 598 1 899 Alteration of Structure 128 140 Copies 16 17 Duplicate of Licence 188 86 Inspectors Report 12 13 Management 1 360 1 505 New Application 3 510 2 422 Occasional Licences 2 710 2 385 Pending Lodgement 931 1 127 Renewals 79 671 74 360 Restorations 2 891 2 096 Transfer of Licence 1 360 1 295 Unallocated Receipts 1 110 3 612 Income received in advance - renewals (31 409) (28 628) Overdue licences 101 108 Other Receipts : Lapsed Licences 1 340 1 505 66 517 63 942

12. Interest Received - Bank

Interest Earned - Bank 914 456

13. Government grants and subsidies

Operating grants Government grant (operating) 26 352 25 871

14. Fines, Penalties and Forfeits

Fines, Penalties and Forfeits 2 945 2 839

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 247 GAUTENG LIQUOR BOARD PART E FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note(s) 2019/20 2018/19 R’000 R’000

15. Employee related costs

Basic Salary 39 598 40 516 Medical Aid - Company Contribution 2 365 1 412 Leave pay provision charge 692 (504) Employee benefits expensed - Other - 48 Overtime payments - 4 Acting allowances 57 - Housing benefits and allowances 1 118 1 027 Leave Gratuity - 181 Bargaining Council - Company contributions 9 8 Perfomance bonus 358 335 13th Cheque 2 769 2 838 Non-Pensionable Allowance 1 534 1 461 Pension - Company Contribution 4 389 4 931 52 889 52 257

ANNUAL REPORT 248 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG LIQUOR BOARD FINANCIAL INFORMATION PARTPART EA

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note(s) 2019/20 2018/19 R’000 R’000 16. Depreciation and amortisation Property, plant and equipment 111 191

17. Goods and Services

Advertising 320 - Audit fees 743 818 Bank charges 15 14 Cleaning services 839 779 Conferences and delegation 615 587 Audit committee expenses 11 - Consumables 3 2 Contracted maintenance 2 017 1 904 Departmental consumption 1 313 812 Electricity 651 984 External Comp Ser: info services 106 220 Resettlement costs 35 - Legal expenses 745 1 141 Levies paid 388 299 Licence fees - computers 446 - Printing and stationery 554 98 Professional fees 3 827 15 979 Rental of buildings 12 128 11 294 Security costs 843 785 Telephone and fax 305 326 Thefts and losses - 14 Training and development - 53 Travel - local 21 57 25 925 36 166

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 249 GAUTENG LIQUOR BOARD PART E FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note(s) 2019/20 2018/19 R’000 R’000 18. Cash generated from (used in) operations

Surplus 16 741 1 617 Adjustments for: Depreciation and amortisation 111 191 Impairment loss: Penalty 644 1 105 Movements in provisions (192) 66 Bad debts: Penalty debt 315 234 Bad debts: Employee advances 41 37 Bad debts: Overdue licences 91 1 529 Gain/(loss) on disposal of assets 30 23 Changes in working capital Receivables from exchange transactions (260) 183 Other receivables from non-exchange transactions (778) (1 226) Prepayments 106 159 Income received in advance 2 781 - Payables from exchange transactions 844 (2 605) Taxes and transfers payable (non-exchange) - (8 171) 20 474 (6 858)

ANNUAL REPORT 250 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG LIQUOR BOARD FINANCIAL INFORMATION PARTPART EA

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note(s) 2019/20 2018/19 R’000 R’000 19. Financial instruments

Categories of financial instruments 2020 Financial assets At amortised cost Total Trade and other receivables from exchange transactions 282 282 Receivables from non-exchange transactions 172 172 Cash and cash equivalents 30 294 30 294 30 748 30 748

Financial liabilities At amortised cost Total Trade and other payables from exchange transactions 37 417 37 417

2019 Financial assets At amortised cost Total Trade and other receivables from exchange transactions 155 155 Receivables from non-exchange transactions 353 353 Cash and cash equivalents 9 820 9 820 10 328 10 328 Financial liabilities At amortised cost Total Trade and other payables from exchange transactions 33 785 33 785

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 251 GAUTENG LIQUOR BOARD PART E FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note(s) 2019/20 2018/19 R’000 R’000 20. Commitments

Authorised operational expenditure Already contracted for but not provided for

■■ Office lease rental 7 190 12 772 ■■ Security - 893 ■■ Cleaning - 886 ■■ Physical verification outlets - 7 583 ■■ Open Purchase orders - 5 7 190 22 139 Not yet contracted for and authorised

■■ Office Lease Rental - City Property - 1 631 ■■ Office Lease Rental - Elite Property - 473 ■■ GLB Health Check - 897 - 3 001 Total operational commitments Already contracted for but not provided for 7 190 22 139 Approved but not yet contracted for - 3 001 7 190 25 140 Total commitments Authorised operational expenditure 7 190 25 140

This committed expenditure relates to leases which will be financed through existing cash resources, funds generated externally, etc.

ANNUAL REPORT 252 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG LIQUOR BOARD FINANCIAL INFORMATION PARTPART EA

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note(s) 2019/20 2018/19 R’000 R’000 Operating leases - as lessee (expense)

At the reporting date the entity has outstanding commitments under operating leases which fall due as follows:

Minimum lease payments due - within one year 7 190 15 441 - in second to fifth year inclusive - 1 213 7 190 16 654

Operational Commitments - within one year - 8 267 - in second to fifth year inclusive - 219 - 8 486

During the 2019/20 Financial year,the entity disclosed the commitments in line with GRAP Standards and only disclosed the operating lease commitments in terms of GRAP 13 and the entity did not have any capital commitments as at 31 March 2020.

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 253 GAUTENG LIQUOR BOARD PART E FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note(s) 2019/20 2018/19 R’000 R’000 21. Related parties

Relationships Controlled entities Gauteng Department of Economic Development

The Gauteng Liquor Board is a trading entity of the Gauteng Department of Economic Development and its business operations are regulated as per the Gauteng Liqour Act no. 2 of 2003. The entity is under control of the MEC of Gauteng Department of Economic Development.

Gauteng Liquor Board receives a subsidy from Gauteng Department of Economic Development to run its operational costs, including office lease rentals.

Gauteng Liquor Board is related to all Gauteng Provincial Goverment Departments and its trading entities by virtue of being under the same control by Gauteng Premier and Gauteng Legislature.

Related party balances Balances - Owing (to) by related parties Gauteng Department of Economic Development (371) (168) Government Printing Works - (7) Gauteng Enterprise Propeller - (550) Department of Human Settlements - (88) Related party transactions Service in kind

In the 2019/20 financial year Gauteng Department Economic Development rendered the services listed below at no cost to the entity:

■■ Human Resources ■■ Finance ■■ Corporate Services ■■ Rental of regional offices

ANNUAL REPORT 254 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG LIQUOR BOARD PART D FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Figures in Rand thousand

21. Related parties (continued)

Remuneration of management

Management class: Executive management

2020

GAUTENG DEPARTMENT OFECONOMIC DEVELOPMENT Name Basic salary Bonuses and Other Total performance Benefits related received payments

Bodibe-Lushaba CK 725 60 424 1 209

Mosing MS* (Resigned November 2019) 520 74 182 776

Martin R 1 047 87 362 1 496

Shabangu OM 747 62 436 1 245

3 039 283 1 404 4 726

2019 ANNUAL REPORT Name Basic salary Bonuses and Other Total performance Benefits related received payments

Bodibe-Lushaba CK 519 57 274 850

Mosing MS 527 - 161 688

Martin R 739 - 229 968

Shabangu OM 358 - 175 533

255 2 143 57 839 3 039 GAUTENG LIQUOR BOARD PART E FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 22. Members’ emoluments The Gauteng Liquor Board is a juristic person established in terms of Section 2 of the Gauteng Liquor Act. Act No 2 of 2003 (the Act). The Board does not perform the powers and functions of an executive board but performs the functions of an application board. In this regard the Board considers applications for liquor licenses and either grant or refuse such applications. The board meets two (2) days per week. Local Committees meet one (1) day per week. Because of its status as a juristic person the Board is sued directly and may institute legal actions instituted by and against the Board.

In terms of Section 3 of the Act the Board has the following powers and functions:

1) The Board shall receive applications referred to in section 21 from the local committees and after considering such applications

(2) The Board may, after the consideration by it or any other matter contemplated in this ACT:

a. suspend for (an indefinite time or for such period as it may determine or withdraw from such date as it may determine, a licence which is subject of a report, complaint or objection concerned, or any right priviledge which is attached thereto. b. declare the licence concerned to be subject to such conditions or further conditions as it may in its discretion impose. c. rescind the suspension of the licence concerned of any right or priviledge which is attached thereto, with immediate effect or from such date as it may determine, subject to such conditions as it may in its discreetion impose, or. d. take any such other steps as it may think fit.

The board consist of nine (9) members appointed in terms of Section 4 of the Act. In addition the Act also make provision for the established of local committees of the Board in each of the areas of the municipalities in the Province, known as Metropolitan Councils or District Council may determine.

Section 5 o the Act stipulates that a member shall be appointed for a term not exceeding 5 years and shall be eligible for reappointment at the lapse of the intial term. No person shall be reappointed as a member of the Board for more than two (2) terms. A member of the Board shall be paid such remuneration and allowance out of the funds of the Board as the Member of Executive Council may determine.

Section 16 of the Act stipulates that the funds of the Board shll consist of:

a. money approved by the Provincial Legislature; and b. money accruing to the Board from any other source approved by the Member of the Executive Council including fees paid in terms of this Act.

ANNUAL REPORT 256 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG LIQUOR BOARD FINANCIAL INFORMATION PARTPART EA

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note(s) 2019/20 2019/20 R’000 R’000

22. Members’ emoluments - Non-executive

2020 Member’s fees Total Khoza MP 115 115 Khumalo BN 75 75 Lebogo MJ 70 70 Lebona PW 49 49 Madileng KM 45 45 Magwaza SA 107 107 Maja-Masilo MS 349 349 Masilo AS 741 741 Masina P 636 636 Matongo J 290 290 Mgwebi WW 89 89 Molapo MJ 65 65 Morabe TZ 90 90 Mthembu TP 129 129 Mudau SP 65 65 Ngakatau IS 370 370 Ngoma GYW 471 471 Pandelani FR 1 020 1 020 Samuel PL 157 157 Seforo DK 109 109 Sibanyoni AM 94 94 Sithole ST 78 78 Thobejane PM 154 154 Van Der Merwe MT 7 7 Van Der Westhuizen FJ 24 24 Van Der Schyf WN 74 74 5 473 5 473

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 257 GAUTENG LIQUOR BOARD PART E FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note(s) 2018/19 2018/19 R’000 R’000 22. Members’ emoluments 2019 Member’s fees Total Gcabashe BTS 4 4 Khoza MP 126 126 Khumalo BN 82 82 Lebogo MJ 419 419 Magwaza SA 118 118 Mahlangu KS 7 7 Maithufi D 26 26 Maja MS 300 300 Maodi RA 24 24 Masilo AS 562 562 Masina P 561 561 Matongo J 448 448 Mgwebi WW 91 91 Morabe TZ 85 85 Mthembu TP 127 127 Mudau SP 73 73 Nadesan VS 30 30 Ngakatau IS 444 444 Ngoma GYW 379 379 Pandelani FR 1 048 1 048 Samuel LP 127 127 Sibanyoni AM 73 73 Sithole ST 59 59 Thobejane PM 182 182 Thulo PR 24 24 Tsokolibane PL 42 42 Van Der Merwe MT 47 47 Van Der Schyf WN 65 65 Van Der Westhuizen FJ 29 29 Wotshela SB 13 13 5 615 5 615 23. Auditor’s Remuneration Fees 743 818

ANNUAL REPORT 258 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG LIQUOR BOARD FINANCIAL INFORMATION PARTPART EA

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note(s) 2019/20 2018/19 R’000 R’000

24. Prior-year error

In the prior period the entity recognised revenue and corresponding receivables for lapsed licenses which was not probable on assumption that the expired liquor licensees will come renew in the future. Furthermore, the amount recognised was incorrect and not apportioned over the license period. The effect of the restatement as a result of the prior period error are as follow:

Statement of financial position As previously Correction of Restated reported error Receivables from exchange transactions 1 402 (1 247) 155 Statement of financial performance As previously Correction of Restated reported error Revenue from exchange transactions 68 837 (4 388) 64 449 Bad debt (4 941) 3 141 (1 800) Increase/(Decrease) in Surplus for the year - (1 247) -

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 259 GAUTENG LIQUOR BOARD PART E FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 25. Risk management

Financial risk management

Liquidity risk

The entity’s risk to liquidity is a result of the funds available to cover future commitments. The entity manages liquidity risk through an ongoing review of future commitments and credit facilities. The entity’s approach to managing liquidity is to ensure as far as possible, that it will always have sufficient liquidity to meet its liabilities when due under both normal and stressed conditions, without incurring unacceptable losses.

At March 31, 2020 Less than 1 year Between Between Over 5 years 1 & 2 years 2 & 5 years Trade and other payables - from Exchange transaction 37 417 - - - Less than 1 year Between Between Over 5 years 1 & 2 years 2 & 5 years At March 31, 2019 Trade and other payables - from Exchange transactions 33 785 - - -

Credit risk Credit risk consists mainly of cash deposits, cash equivalents, derivative financial instruments and trade debtors. The entity only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party.

Financial assets exposed to credit risk at year end were as follows: Financial instrument 2020 2019 Penalties 172 143 The entity did not individually rate its customers, due to its diverse customer base.

26. Going concern We draw attention to the fact that at 31 March 2020, the entity had an accumulated deficit of R (7 304) and that the entity’s total liabilities exceed its assets by R (7 304).

The annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.

Towards the end of the 2020 financial year, the world was faced with the consequences of the unprecedented COVID-19 pandemic. The impact of COVID-19 on the South African economy is predicted to have devastating effects. The entity has reviewed its ability to continue as a going concern with these challenging times, however the impact of COVID-19 has potential impact to the revenue from liquor licenses. The Covid-19 outbreak and the implementation of the state of disaster is material to the business of the entity. The banning of the sale and transportation of liquor for prolonged period has a direct impact on the entity’s ability to process the lodgement of new applications (due monthly) and collect renewal fees. As a consequence, the amount of penalty fees is estimated to increase materially with high probability of non-recovery of the debt. The uncertainty of the duration of the outbreak, with vaccine trials predicted to be concluded in 18 months time, may also impact on those liquor outlets that have already renewed their licences to continue to renew their licences on their next anniversary renewal dates.

Overall, it is estimated that enforcement costs would increase and that they would be increased liquidations in the sector to the detriment of the entity’s revenue streams. The entity will introduce measures to curb costs and increase enforcement in order to collect more revenue and ensure that the entity remains as a going concern.

ANNUAL REPORT 260 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG LIQUOR BOARD FINANCIAL INFORMATION PARTPART EA

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020 27. Events after the reporting date

Impact of Covid-19 pademic on revenue collection.

Revenue collection have been severely impacted in the liquor trade industry due to the outbreak of the Covid-19 Pandemic and regulatory instruments put in place to manage the spread. Revenue collection was mostly affected during level 5 and level 4.

Liquor traders were under restricted movement and there was a complete shut down on all liquor operations. This had a negative impact on monthly target, quarterly target and cumulatively the set annual target will not be met. Comparatively, the entity has collected far less than it did in the last financial year during the same period as shown below;

Licence fees: April 2019: R5 499 366 April 2020: R1 660 700 May 2019: R5 087 066 May 2020: R3 270 930

This is a non adjusting event.

Liquor traders lost the potential income from liquor trade and this affected their ability to pay for their renewal fees hence the entity collected very little revenue during the month of April and May. In addition, all other income generating liquor activities remained non-function thereby reducing the entity’s ability to collect revenue /projected target. Some of the activities are based on the year-calendar, whereby, once off events are hosted and the revenue is generated through occasional permits issued.

Mananagement has introduced the following measures in order to improve the revenue lost to ensure the intial baseline pre-covid-19 are not adversly affected;

■■ Introduction of the payment holiday for all traders who were supposed to renew their licences from April 2020. Payment holiday was introduced as a tool to allow the traders to be able to gradually pay the renewal amount without penalties imposed for late payment and without their licenses lapsing as a result of not paying the renewal fee. This will enable GLB to keep all existing liquor traders on the database and allow them to generate income from the sale of liqour during the restricted alert level and beyond lockdown period. The cut off period for payment holiday is 31 December 2020. ■■ Follow up on traders who have not renewed post payment holiday cut off date. ■■ Continuous compliance and monitoring and joint operations will be maintained to manage compliance by traders and to root out incidents of illegal trade. ■■ Continuous engage with the provincial COVID-19 command center and the national command center on relaxing and re-introduction of the parts of liquor trade that is deemed to be low risk and yet contributes towards revenue collection.

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 261 GAUTENG LIQUOR BOARD PART E FINANCIAL INFORMATION

NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020

Note(s) 2019/20 2018/19 R’000 R’000 28. Fruitless and wasteful expenditure Opening balance as previously reported - 49 Opening balance as restated - 49 Add: Fruitless and Wasteful Expenditure identified - current 19 - Add: Fruitless and Wasteful Expenditure identified - prior period 5 2 Less: Condoned or written off by relevant authority (5) (51) Closing balance 19 - Details of fruitless and wasteful expenditure - current year Interest charged on overdue accounts 19 2

29. Irregular expenditure

Opening balance as previously reported 6 679 1 762 Add: Irregular Expenditure - Prior year adjustment - - Opening balance as restated 6 679 1 762 Add: Irregular Expenditure - current 2 054 6 317 Less: Amounts condoned or written off by relevant authority (347) (1 400) Closing balance 8 386 6 679

Analysis of expenditure awaiting condonation per age classification Current year 2 054 6 317 Prior years 6 332 362 8 386 6 679 Details of irregular expenditure - current year Variation exceeding 15% without Gauteng Provincial Treasury approval 2 054 6 317 Analysis of variations exceeding 15% without approval - current year Operating leases 2 051 6 317 Government Printing Works 3 - 2 054 6 317 Details of Irregular expenditure - under assessment (not included in the main note) Variation exceeding 15% - operating lease 3 378 -

ANNUAL REPORT 262 GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT GAUTENG LIQUOR BOARD FINANCIAL INFORMATION PARTPART EA

ANNUAL REPORT GAUTENG DEPARTMENT OF ECONOMIC DEVELOPMENT 263 GPG Contact Centre 0860 GAUTENG (0860 428 8364)

Umnotho House 56 Eloff Street Marshalltown, Johannesburg

Private bag X091 Marshalltown, 2107

Tel: +27 (0) 11 355 8000 Fax: +27 (0) 11 355 8730 Email: [email protected] www.gauteng.gov.za

PR134/2020 ISBN: 978-0-621-48455-7