CIPC Annual Report V1

4. Commissioner’s overview

Figure A. 1: The CIPC’s 2020/21 revenue

I hereby present the CIPC’s 2020/21 Annual Report, which outlines the CIPC’s performance during this period. The CIPC played an integral part in the functioning of the economy despite the challenges presented by the Covid-19 pandemic. The organisation was responsive and met new business requirements, inter alia the building of a registration platform for the issuing of essential services certificates, because of the conditions created by the pandemic. It also achieved 100% of its Annual Performance Plan (APP) targets set for the period under review. An indication of the organisational excellence is the external customer and stakeholder rating which was 80% in 2020 compared to 74% in 2017. In February 2021, the CIPC won the Centre for Public Service Innovation (CPSI) Innovation Award in the category Technology for Service Delivery Improvement. Mr Tando Luyaba, Solutions Architect in the Innovation and Collaboration Unit won the prize for Trailblazer of the Year. These two awards were because of the BizPortal that had revolutionised the virtual one-stop shop for businesses. The CIPC also won an Innovation Award from the Corporate Registers Forum (CRF) on its eXtensible Business Reporting Language (XBRL) Programme and the award ceremony was held on 31 March 2021, during which the CIPC was also congratulated on the success of XBRL. 4.1 General financial review of the public entity For the year under review, the CIPC received revenue totalling R 643 million, of which R 416 million was from annual returns filed by businesses. R 610 million was generated from business activities related to submission of annual returns, fees received for the registration and maintenance of companies, intellectual property and cooperatives as well as from data sales and disclosure. Revenue generated from other income amounted to R 9 million. This comprised mainly of recognition of customer deposit balances older than three years as revenue, amounting to R 8.2 million, and other sundry income. Interest of R 23.7 million was earned on the Corporation for Public Deposits (CPD) investment at the South Africa Reserve Bank (SARB) and other bank accounts.

2020/2021 CIPC REVENUE

1%

4%4%

Annual Returns Interest Registration Fees Other income Data Sales and Disclosure

26%

65%

4.2 Spending trends of the public entity

The CIPC continued with the stabilisation of its Information Technology (IT) systems through investment in improved IT infrastructure, which led to improved functionality and greater security. As a service delivery organisation, the main cost drivers for the CIPC relate to employee remuneration, IT-related services, office accommodation and depreciation and amortisation. As shown in Figure A.2 hereunder the remuneration of staff remains the most substantial expense, amounting to R348 million of total operating expenditure during the period under review. Figure A. 2: The CIPC’s 2019/20 expenditure

2020/2021 CIPC ACTUAL EXPENTITURE

4%

7%

7%

Employee remuneration O ce accommodation ICT related services Depreciation and amortisation Other

11%

71%

4.3 Capacity constraints and challenges facing the public entity The organisation, like most others around the globe, faced unprecedented challenges with the Covid-19 pandemic. However, as an agile, responsive organisation, it managed to easily adopt new ways of working to deliver on its mandate.

COMPANIES AND INTELLECTUAL PROPERTY COMMISSION I Annual Report 2020/21

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