SMD

Annual Report 2023/2024

3.

ACHIEVEMENT OF INSTITUTIONAL IMPACTS AND OUTCOMES

of work life towards creating an environment that facilitates a holistic growth and wellness of the DSBD employees. Challenges persist in implementing the organisational structure due to cost containment measures and sustained high workloads. Additionally, there are difficulties in enhancing youth representation and addressing compensation levels for specialised areas, making recruitment challenging. Turnaround times in the recruitment and selection process are hampered by workload levels, and there are budgetary constraints concerning the use of service providers. With a compensation budget of R225.1 million for 2023/24 financial year, projected to increase to R262.8 million by 2025/26 financial year, the unexpected 7.5% cost of living adjustment in April 2023 and the anticipated 4.7% adjustment for 2024 would limit the Department to filling only 315 out of 357 posts to stay within the medium-term compensation budget, without additional funding. Future plans entail the improvement of working environment and condition, training to enhance employees’ skills and knowledge, emphasis in leadership development and governance. The Department will also focus on business process improvement, organisational functionality assessment, and evaluating the implemented structure. 2.4. Key policy developments and legislative changes The adopted Public Service Amendment Regulations of 2023 had little impact on the General Conditions of Employment, notably on employment additional to establishment and the shorter duration required to fill vacancies. % The employment of a person additional to the establishment shall not exceed 12 calendar months, including any extended or renewed time, and this amendment no longer allows departments to request an extension from the Minister of Public Service Administration. % Departments are now required to fill all funded vacant posts within eight months after becoming vacant, as opposed to the previous recommended 12 months period.

The Department made significant progress towards achieving its five-year targets in relation to the outcome indicators in order to realise its medium-term outcomes and long-term Impact Statement and contribute towards the revised 2019 24 MTSF targets. The Department’s Impact Statement is to ensure that the SMMEs and Co-operatives are sustainable and contributing meaningfully to the economy. In order to realise its Impact Statement, the Department has seven outcomes to be achieved over the medium-term period. These are: Outcome One: Improved Governance and Compliance In the effort for improved governance and compliance outcome, the Administration Programme during the year under review, was set to ensure that the accountability, transformation, risk management, implementation of risk based internal audit plans are undertaken/attended to, and ensure effective implementation of recruitment plans that will enable the Department to achieve its vacancy rate target through attracting, developing and retaining the skills needed to deliver on its crucial mandate. The Department received its second unqualified audit opinion with no material findings on Annual Financial Statements and its third unqualified audit opinion with no material findings on performance information. The implementation of the audit action plan that is monitored on a quarterly basis enabled the team to curtail repeat findings. The Department continues to work diligently towards maintaining its audit outcome, including improving on the non-material findings. The Department has achieved its five-year target which stated that it needed to ensure that it obtains Unqualified Audit Opinions for both financial and nonfinancial performance data. Additionally, the five-year target for the Administration Programme was to ensure that creditors are paid within 30 days and less than or equal to 5% variance on the annual budget is maintained. During the year under review, the Department continued to pay 100% of valid creditors within 30 days and registered 0.75% variance on the annual budget.

Part B • PERFORMANCE INFORMATION • Department of Small Business Development

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