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Annual 201 / Report 8 91 Economic Development and Tourism AnnualReport 201 8 /1 9 Economic Development and Tourism Department of Economic Development and Tourism Province of the Western Cape Annual Report 2018/19 SUBMISSION OF THE ANNUAL REPORT TO THE EXECUTIVE AUTHORITY Mr David Maynier Minister of Finance and Economic Opportunities I have the honour of submitting the Annual Report of the Department of Economic Development and Tourism for the period 1 April 2018 to 31 March 2019. MR Solly FOURIE AccountinG OFFICER DATE: 26 AUGust 2019 iv Department of Economic Development and Tourism – Annual Report 2018/19 CONTENTS PART A: GENERAL INFORMATION 5 1. DEPARTMENT’S GENERAL INFORMATION 6 2. LIST OF ABBREVIATIONS/ACRONYMS 7 3. FOREWORD BY THE MINISTER 10 4. REPORT OF THE ACCOUNTING OFFICER 11 5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT 17 6. STRATEGIC OVERVIEW 18 6.1 Vision 18 6.2 Mission 18 6.3 Values 18 7. LEGISLATIVE MANDATE 19 8. ORGANISATIONAL STRUCTURE 24 9. ENTITIES REPORTING TO THE MINISTER 26 PART B: PERFORMANCE INFORMATION 27 1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES 28 2. OVERVIEW OF DEPARTMENTAL PERFORMANCE 28 2.1 Service delivery environment 28 2.2 Strategy to overcome areas of underperformance 35 2.3 Service delivery improvement plan 36 2.4 Organisational environment 56 2.5 Key policy developments and legislative changes 56 3. STRATEGIC OUTCOME ORIENTED GOALS 57 4. PERFORMANCE INFORMATION BY PROGRAMME 61 4.1 Programme 1: Administration 61 4.2 Programme 2: Integrated Economic Development Services 70 4.3 Programme 3: Trade and Sector Development 79 4.4 Programme 4: Business Regulation and Governance 89 4.5 Programme 5: Economic Planning 94 4.6 Programme 6: Tourism, Arts and Entertainment 110 4.7 Programme 7: Skills Development and Innovation 119 Department of Economic Development and Tourism – Annual Report 2018/19 1 5. SUMMARY OF FINANCIAL INFORMATION 129 5.1 Departmental receipts 129 5.2 Programme expenditure 129 5.3 Transfer payments to public entities 130 5.4 Transfer payments to all organisations other than public entities 131 5.5 Conditional grants and earmarked funds paid 135 5.6 Conditional grants and earmarked funds received 135 5.7 Donor funds received 136 5.8 Capital investment, maintenance and asset management plan 140 PART C: CORPORATE GOVERNANCE 142 1. INTRODUCTION 143 2. RISK MANAGEMENT 143 3. Fraud AND corruption 146 4. MINIMISING conflict OF interest 147 5. CODE OF conduct 147 6. Health, safety AND environmental issues 147 7. Scopa resolutions 148 8. PRIOR modifications to audit reports 148 9. INTERNAL control UNIT 148 10. INTERNAL audit 148 11. AUDIT committee 149 PART D: HUMAN RESOURCE MANAGEMENT 151 1. INTRODUCTION 152 2. STATUS OF PEOPLE MANAGEMENT AT THE DEPARTMENT 152 2.1 Departmental workforce planning 152 2.2 Employee performance management 152 2.3 Employee wellness 153 2.4 People management monitoring 153 3. PEOPLE MANAGEMENT OVERSIGHT STATISTICS 153 3.1 Personnel related expenditure 153 3.2 Employment and vacancies 156 3.3 Job evaluation 157 3.4 Employment changes 159 3.5 Employment equity 162 2 Department of Economic Development and Tourism – Annual Report 2018/19 3.6 Signing of performance agreements by SMS members 167 3.7 Filling of SMS posts 167 3.8 Employee performance 169 3.9 Foreign workers 171 3.10 Leave utilisation for the period 1 January 2017 to 31 December 2017 172 3.11 Health promotion programmes, including HIV and AIDS 175 3.12 Labour relations 178 3.13 Skills development 179 3.14 Injury on duty 181 3.15 Utilisation of consultants 182 PART E: FINANCIAL INFORMATION 187 Report OF THE auditor-GENERAL to the Western Cape Provincial Parliament on vote no. 12: Western Cape Department of Economic Development and Tourism 188 APPROPRIATION STATEMENT 193 NOTES TO THE APPROPRIATION STATEMENT 228 1. Detail of transfers and subsidies as per appropriation act (after virement) 228 2. Detail of specifically and exclusively appropriated amounts voted (after virement) 228 3. Detail on payments for financial assets 228 4. Explanations of material variances from amounts voted (after virement) 228 Statement OF FINANCIAL Performance 229 Statement OF FINANCIAL Position 230 Statement OF CHANGES IN Net Assets 231 Cash Flow Statement 232 Notes to THE Annual FINANCIAL Statements (including Accounting Policies) 233 1. Annual appropriation 238 2. Departmental revenue 238 3. Aid assistance 239 4. Compensation of employees 240 5. Goods and services 241 6 Payment for financial assets 244 7. Transfers and subsidies 245 8. Expenditure for capital assets 245 9. Cash and cash equivalents 246 10. Prepayments and advances 247 11. Receivables 248 12. Investments 250 13. Voted funds to be surrendered to the revenue fund 251 14. Departmental revenue and PRF Receipts to be surrendered to the Revenue Fund 251 Department of Economic Development and Tourism – Annual Report 2018/19 3 15. Payables – current 251 16. Net cash flow available from operating activities 252 17. Reconciliation of cash and cash equivalents for cash flow purposes 252 18. Contingent liabilities and contingent assets 252 19. Commitments 253 20. Accruals and payables not recognised 253 21. Employee benefits 254 22. Lease commitments 255 23. Irregular expenditure 256 24. Related party transactions 257 25. Key management personnel 257 26. Non-adjusting events after reporting date 257 27. Movable tangible capital assets 258 28. Intangible capital assets 262 Annexures 264 4 Department of Economic Development and Tourism – Annual Report 2018/19 PartA : General Information PART A: GENERAL INFORMATION 1. DEPARTMENT’S GENERAL INFORMATION PHYSICAL ADDRESS: 80 St George’s Mall Waldorf Building Cape Town 8001 POSTAL ADDRESS: PO Box 979 Cape Town 8000 TELEPHONE NUMBER: +27 21 483 3840 FAX NUMBER: +27 21 483 7527 EMAIL ADDRESS: [email protected] WEBSITE ADDRESS: www.westerncape.gov.za Source: Google Maps, 2015 6 Department of Economic Development and Tourism – Annual Report 2018/19 2. LIST OF ABBREVIATIONS/ACRONYMS ACSA Airports Company South Africa AFS Audited Financial Statement AGSA Auditor-General of South Africa AIFMRM African Institute for Financial Markets and Risk Management AO Accounting Officer AOPI Auditing of Performance Information APP Annual Performance Plan BAS Basic Accounting System BBBEE Broad-based Black Economic Empowerment BER Bureau for Economic Research BESP Built environment Support Programm BPeSA Business Process enabling South Africa BPO Business Process Outsourcing CASIDRA Cape Agency for Sustainable Integrated Development in Rural Areas CATHSSETA Culture, Arts, Tourism, Hospitality, Sports, Sector Education and Training Authority CBMT Competency-based Modulator Training CCDI Cape Craft and Design Institute CCTC Cape Clothing and Textile Cluster CEI Centre for e-Innovation CITI Cape Information and Technology Initiative CLOTEX Cape Clothing and Textile Service Centre CMT Cut, Make and Trim CPUT Cape Peninsula University of Technology CRDP Comprehensive Rural Development Programme CSC Corporate Services Centre CTFC Cape Town Fashion Council CTGA Cape Tourist Guides Association CTICC Cape Town International Convention Centre CTCIP Clothing and Textile Competitiveness Improvement Programme DAFF Department of Agriculture, Forestry and Fisheries DBSA Development Bank of Southern Africa DEADP Department of Environmental Affairs and Development Planning DEDAT Department of Economic Development and Tourism DITCOM Departmental IT Committee DMO Destination Marketing Organisation DPME Department of Planning, Monitoring & Evaluation DPSA Department of Public Service and Administration DST Department of Science and Technology DTM Departmental Top Management DTPW Department of Transport and Public Works dti Department of Trade and Industry EBA Established Business Activity ECM Electronic Content Management ED Enterprise Development EDP Economic Development Partnership EE Employment Equity EHWP Employee Health and Wellness Programme EIA Environmental Impact Assessment EPWP Extended Public Works Programme ERM Enterprise Risk Management Department of Economic Development and Tourism – Annual Report 2018/19 7 FET Further Education and Training GDP Gross Domestic Product GDPR Gross Domestic Product per Region GEM Global Entrepreneurship Monitor GMT Government Motor Transport HCT HIV Counselling and Testing HDI Historically Disadvantaged Individual HOD Head of Department HRD Human Resource Development HSP Human Settlements Plan ICAN Integrated Community Access Network ICAS Independent Counselling and Advisory Service ICT Information and Communications Technology IDC Industrial Development Corporation IDZ Industrial Development Zone IEDS Integrated Economic Development Services IFRS International Financial Reporting Standards ISO International Organisation for Standardisation IT Information Technology JMA Joint Marketing Agreement KZN KwaZulu-Natal LED Local Economic Development LLT Liquor Licencing Tribunal LRA Labour Relations Act M&E Monitoring and Evaluation MCOE Management of Compensation of Employees MEC Member of Executive Council MERO Municipal Economic Review and Outlook MOA Memorandum of Agreement MPAT Management Performance Assessment Tool MTEF Medium Term Expenditure Framework Pre-determined Objectives NDP National Development Plan NDT National Department of Tourism NEF National Empowerment Fund NFVF National Film and Video Foundation NGO Non-Governmental Organisation NO National Outcome NPO Non-Profit Organisation NT National Treasury OCP Office of the Consumer Protector OD Organisational Design PACA Participatory
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