Percentage Of Targets Achieved 2 3 of targets

Percentage Of Targets Achieved 2. 3% of targets under achieved 52. 4% of targets met 2

Overall Performance for 2012/13 Targets Total Number of Targets 42 Targets Exceeded 19 Targets met 22 Targets under-achieved 1 R’ 000 Budget 696 518 Expenditure 673 473 Under spending 23 045 Post numbers 142 Staff employed 139 3

Performance for 2012/13 - Programme 1 Targets Total Number of Targets 4 Targets Exceeded 1 Targets met 2 Targets under-achieved 1 R’ 000 Budget 62 931 Expenditure 55 394 Under spending 7 537 Post numbers 62 Staff employed 73 4

Performance for the 2012/13 - Programme 2 Targets Total Number of Targets 18 Targets Exceeded 6 Targets met 12 Targets under-achieved 0 R’ 000 Budget 19 197 Expenditure 11 575 Under spending 7 622 Post numbers 26 Staff employed 14 5

Performance for the 2012/13 - Programme 3 Targets Total Number of Targets 10 Targets Exceeded 8 Targets met 2 Targets under-achieved 0 R’ 000 Budget 601 824 Expenditure 597 523 Under spending 4 301 Post numbers 38 Staff employed 39 6

Performance for the 2012/13 - Programme 4 Targets Total Number of Targets 10 Targets Exceeded 4 Targets met 6 Targets under-achieved 0 R’ 000 Budget 12 565 Expenditure 8 981 Under spending 3 584 Post numbers 16 Staff employed 11 7

OVERALL SUMMARY MPAT 2012/13 KEY PERFORMANCE AREA RED AMBER YELLOW GREEN STRATEGIC MANAGEMENT 0 0 3 0 GOVERNANCE 7 2 2 0 HUMAN RESOURCE MANAGEMENT 4 4 2 0 FINANCIAL MANAGEMENT 0 0 7 0 TOTALS 11/31 5/31 14/31 0/31

2012/13 MPAT PERFORMANCE AREA STRATEGIC MANAGEMENT STRATEGIC PLANNING APP MONITORING AND EVALUATION GOVERNANCE SERVICE DELIVERY IMPROVEMENT MANAGEMENT STRUCTURES AUDIT COMMITTEE ETHICS FRAUD PREVENTION INTERNAL AUDIT RISK MANAGEMENT DELEGATIONS - PFMA DELEGATIONS - PSA ICT PAIA FINAL SCORE 3 3 3 1 1 3 1 2 2 1 1

2012/13 MPAT PERFORMANCE AREA HUMAN RESOURCE MANAGEMENT HUMAN RESOURCE PLANNING ORGANISATIONAL DESIGN HUMAN RESOURCE DEVELOPMENT PAY SHEET CERTIFICATION RECRUITMENT & RETENTION MANAGEMENT OF DIVERSITY PMDS – L 1 -12 PMDS - SMS PMDS –HOD EMPLOYEE RELATIONS FINAL SCORE 2 1 1 3 2 1 2 2 3 1

2012/13 MPAT PERFORMANCE AREA FINANCIAL MANAGEMENT SCM – DEMAND MANAGEMENT SCM – ACQUISITION MANAGEMENT SCM - LOGISTICS DISPOSALS CASH FLOW AND EXPENDITURE MANAGEMENT PAYMENT OF SUPPLIERS UNAUTHORISED, IRREGULAR, FRUITLESS AND WASTEFUL EXPENDITURE FINAL SCORE 3 3 3 3

Improving performance reports 2012/13 EDD undertook thorough review of its 2012/13 APP and reporting processes • number of inconsistencies in approach taken during reporting of first, second and third quarter • reports were based on indicators and targets set in operational plans, rather than performance information contained in APP In attempt to have quality reports, indicative of requisite accountability to the public: • first three quarterly reports were reworked in response to targets set in APP • files of evidence were compiled in support of information contained in reworked quarterly reports • fourth quarterly report was compiled and audited based on information contained in preceding reworked reports • Office of AG, DPME and NT were engaged and consulted about review process, quality of information and reports • All relevant EDD staff were mentored around planning and reporting processes, were actively engaged in review and production of evidence files For 2013/14 planning and reporting process: • Indicators were redefined to ensure APP was in keeping with ‘SMART’ principles DG approved reviewed Policy & Procedure for Performance Information Reporting in May 2013

Functioning Internal Audit • • • In 2009, at inception of EDD , there was no Internal Audit unit 01 November 2010 – appointment of Director: Internal Audit 2011 - Initiation of Internal Audit strategy 14 February 2011 – appointment of Audit Committee Noting the lack of capacity and resources , co-sourcing arrangement entered into with the dti to do audits To complete the human resource requirements of the unit: • 11 November 2012 – appointment of Assistant Director • 01 December 2012 – appointment of Deputy Director Strategic plan for audits was completed by D: IA Fraud and Prevention Plan was completed and approved by DG in last quarter of financial year Audit Committee has met on quarterly basis DG has met with Chairperson of Audit Committee to discuss capacity building and mentoring, amongst other issues

Risk Management in EDD 2012/13 • Risk management assessment completed in last quarter of financial year • Risk Strategy approved by DG on 06 March 2013 • Deputy-Director appointed from 01 April 2013 • Work on the Risk Charter has been initiated • Appointment of Risk Committee will be finalised by end of October 2013 • Process to appoint a Chairperson of Risk Committee and departmental risk champions is at an advance stage • Operational risk assessments have been conducted with branches and is currently subject to refinement • Maturing of risk management system is expected

Auditor–General Report Audit Outcome § The department obtained an unqualified audit report § One emphasis of matter relating to the restatement of a corresponding figure in the previous year as a result of an error in interpretation Commitments on addressing Audit Issues § A consolidated ‘heat map’ to rectify the audit findings has been compiled, which reflects responsible persons and timeframes to rectify each finding § ‘Heat Map’ mitigation plans are being monitored every second Friday at the progress meetings, attended by the process owners & chaired by the CFO. Internal Audit attends these meetings and will audit the corrective measures that have been implemented as part of the audit coverage plan § Progress reports on the implementation of corrective measures to be presented to the Audit Committee, Executive Authority, DG and EXCO 15

Outcomes of Auditor–General Report The management report issued by the Auditor-General for the 2012/13 financial reflected 70 findings: - § 49% (i. e. 34) of these findings relate to Supply Chain Management (20) and Financial Accounting (14) § 33% (i. e. 23)of the findings relate to Human Resources Management § The remainder relate to Internal Audit, Information Technology and the Branches 16

Outcomes of Auditor–General Report Area of responsibility No. of Findings Matters Affecting the Audit % Internal Audit 4 6% Information Technology 4 6% 0% Branches and ODG 5 7% 0% Financial Accounting 14 20% Supply Chain Management 20 29% Human Resources Management 23 33% 2 25% 70 100% 8 100% Totals 2 % 4 25% 50% 0%

Outcomes of Auditor–General Report Area of responsibility No. of Findings Addressed % % Internal Audit 4 6% 4 100% Information Technology 4 6% 2 50% Branches and ODG 5 7% 3 60% Financial Accounting 14 20% 12 86% Supply Chain Management 20 29% 19 95% Human Resources Management 23 33% 20 87% 70 100% 60 86% Totals

Financial Performance per Programme 2012/13 Programmes Administration Economic Policy Development Economic Planning and Coordination Economic Development and Dialogue Total Annual Budget R'000 62 931 Expenses R'000 55 394 2011/12 Variance R'000 7 537 % 88. 0% Annual Budget R'000 Expenses R'000 Variance R'000 % 57 646 50 822 6 824 88. 2% 3 662 77. 3% 19 197 11 575 7 622 60. 3% 6 160 1 12 498 601 824 597 523 4 301 99. 3% 503 277 501 013 2 264 99. 6% 12 565 8 981 3 584 71. 5% 21 276 13 269 8 007 62. 4% 696 518 673 473 23 045 96. 7% 598 359 577 602 20 757 96. 5% 19

Year on Year Performance per Programmes 2012/13 2011/12 Variance Administration 88. 0% 88. 2% -0. 2% Economic Policy Development 60. 3% 77. 3% -17. 0% Economic Planning and Coordination 99. 3% 99. 6% -0. 3% Economic Development and Dialogue 71. 5% 62. 4% 9. 1% 96. 7% 96. 5% 0. 2% 673 473 577 602 95 871 Total (R’ 000) 20

Financial Performance per Economic Classification 2012/13 Programmes Annual Budget R'000 Expenses R'000 2011/12 Variance R'000 % Annual Budget R'000 Expenses R'000 Variance R'000 % Compensation 70 399 62 074 8 325 88. 2% 56 172 48 347 7 825 86. 1% Goods & services 69 562 58 544 11 018 84. 2% 47 694 39 960 7 734 83. 8% Departmental Agencies 249 220 Universities & Technikons 12 280 249 220 0 100 % 301 911 0 100 % 12 280 0 100% 5 510 0 100% Public Corporations 289 328 289 327 1 100% 180 443 180 444 -1 100 % 223 222 1 99. 6% 134 131 3 97. 8% 5 506 1 806 3 700 32. 8% 6 495 1 299 673 473 23 045 96. 7% 598 359 577 602 Households Machinery & equipment Totals 696 518 5 196 20% 20 757 96. 5% 21

Financial Performance per Economic Classification Programmes 2012/13 2011/12 Variance Compensation of Employees 88. 2% 86. 1% 2. 1% Goods & services 84. 2% 83. 8% 0. 4% Departmental Agencies 100 % 0% Universities & Technikons 100 % 100% 0% Public Corporations 100% 0% Households 99. 6% 97. 8% 1. 8% Machinery & equipment 32. 8% 20. 0% 12. 8% 96. 7% 96. 5% 0. 2% Totals 22

Reasons for Under Expenditure For the year under review the department had spent 96, 7% of the allocated budget. The reasons for the under expenditure largely relate to: - § Compensation of Employees (R 8 m): due to vacancies during the year and at financial year end § Goods & Services (R 11 m): this largely relates to R 20 m that was allocated during the Adjustments Estimate process for capacity building for the Economic Regulatory Bodies § Machinery & Equipment (R 3. 7 m): The vacancies and the delay in the procurement of a video conferencing largely contributed to this under expenditure 23

Revenue Performance Description Sales of goods and services other than capital assets Fines, penalties and forfeits Interest, dividends and rent on land Transactions in financial assets and liabilities Total 2012/13 2011/12 R'000 R’ 000 21 16 619 994 538 285 50 106 50 263 1 191 4 340 671 312 592 904 Revenue collection increased from R 593 m to R 671 m and this was largely due to the increase in fines and penalties imposed by the Competition Commission. 24

Transfers to Agencies Description 2012/13 2011/12 R'000 R’ 000 Industrial Development Corporation 109 000 34 000 Industrial Development Corporation: sefa 171 330 222 958 Competition Commission 157 211 126 595 Competition Tribunal 15 798 15 175 International Trade Administration 74 403 69 604 527 742 468 332 Total 25

Transfers to Entities and Agencies 2012/13 2011/12 Programmes Purpose for Transfer Research on Spatial Development CSIR Perspective- Functional Regions Continuation and expansion of the Business hub and Training SAICA Programme Continuation of the Capacity Building University of Witwatersrand Programme for Municipalities Establishment of Economic Regulatory University of Johannesburg Course to train ERBs Total R'000 R’ 000 1 808 0 8 996 6 023 2 280 5 510 10 000 0 23 084 11 533 26

Human Resources § At inception of EDD in 2009, 265 posts were approved – for filling on incremental basis over MTEF § Human Resource Planning Strategy to fill 166 funded posts over the MTSF period was developed § Annual targets for funded posts in 2011/12 was 129 and 142 in 2012/13 § By 31 March 2013, 139 funded posts were filled § Funded posts for remaining MTEF period was expanded to 166 posts § EDD recruitment strategy was prioritised to enable the delivery of targets forecast in Strategic Plan and APP § In 2012/13, recruitment of appropriate staff decreased vacancy rate to 2. 1% by year end § Difficulties were encountered around recruitment of staff with specialised and critical skills, as well as women in senior management positions 27

Human Resources § EDD achieved 45% of women employed in senior management posts § EDD achieved the national target of 2% for people with disabilities § Core staff complement ranges from 20 to 35 years § An Employee Assistance Programme was implemented to render a 24 hr service to staff and their families, as well as a Health Promotion Programme to provide HIV/ AIDS counselling and testing in partnership with GEMS § Performance Management and Development system was implemented in 2012/13 § In 2012/13, 14 governance policies were developed internally and approved 28

Staff complement as at 31 March 2013 Number of posts filled Vacancy Rate Additional to establishment Administration 62 73 -17. 7% 3 Economic Policy Development Economic Planning and Coordination Economic Development and Dialogue 26 14 46. 2% 0 38 39 -2. 6% 0 16 11 31. 3% 0 TOTAL 142 136 4. 2 3 29

Staff complement as at 31 March 2013 Male Female Occupationa Coloure Whit Africa Coloure l Bands African d Indian e n d Indian White Total Levels 13 -16 17 2 4 5 10 2 1 7 48 Levels 9 -12 11 0 0 1 20 2 1 1 36 Levels 1 -8 17 1 0 0 33 3 0 1 55 45 3 4 6 63 7 2 9 139 32% 2% 3% 4% 45% 5% 2% 7% 100% Total % Group African Number Percentage 108 78% 10 7% Indian 6 4% White 15 11% Coloured 30

Human Resources Action Plan 2013/14 § Rationalisation and alignment of organizational structure to align more closely to the mandate of EDD, in particular the PICC functions, 1 January 2014. § Head hunting for strategic posts at senior management and specialist posts § Prioritise recruitment and selection processes – § Twenty three positions advertised since April 2013 § Fourteen line function posts and nine posts in support § Six positions filled further twelve projected to be filled by 1 December. § Monthly Human Resource reports – constant monitoring and reporting to improve performance data 31

SIYABONGA