SMD

Annual Report 2023/2024

8.

CAPITAL INVESTMENT

Developments relating to the above that are expected to impact on the department’s current expenditure Not applicable to the DSBD. Details as to how asset holdings have changed over the period under review, including information on disposals, scrapping and loss due to theft The asset holding has changed over the period under review: The DSBD closed the year with 1 436 worth R31.8 million comprising 948 capital assets worth R30.6 million, and 489 minor assets worth R1.2 million. There are currently 25 assets worth R 1.2 million under investigation. Measures taken to ensure that the Department’s asset register remained up-to-date during the period under review Upon receipt, assets were recorded and barcoded, and an inventory list was generated and provided to the responsible official for signature and acknowledgment. Monthly asset reconciliations were diligently compiled, approved, and further supplemented by quarterly physical verifications of assets. Any discrepancies identified during these verifications were recorded in the losses and damages register. This register was subsequently forwarded to Security Management for investigation for liability assessment. The current state of the Department’s capital assets, for example what percentage is in good, fair or bad condition For the period under review, the state of both major and minor assets 1 436 is as follows:

8.1. Capital investment, maintenance and asset management plan Progress made on implementing the capital, investment and asset management plan The Department’s replacement plan is mainly on vehicles that are replaced in line with the Guide for Executives for Ministerial vehicles and on computer-related assets that are replaced after three or four years, or after the warranty period has lapsed, or damaged beyond repair, resources permitting. Furniture and office equipment are purchased in line with the submitted demand plan from Corporate Services. Infrastructure projects which have been completed in the current year and the progress in comparison to what was planned at the beginning of the year. Provide reasons for material variances (2% variance) Seven infrastructure projects were completed during the year under review, and four were in progress, the variances are that the four projects could not be finalised due to construction challenges and delays by suppliers. Infrastructure projects that are currently in progress (list projects) and when are they expected to be completed, plans to close down or down-grade any current facilities The DSBD does not own any facilities, we currently continue to utilise the allocated State residences and offices in Cape Town and Gauteng. Both private leases will be extended till 31 October 2024. Progress made on the maintenance of infrastructure The Department currently manages five State residences in Gauteng and the Western Cape, and two State-owned office buildings at Parliament and Parliament Towers. All these are maintained by the Department of Public Works and Infrastructure (DPWI) prestige. The DSBD also leases two buildings: one through the dtic’s Public-Private Partnerships (PPP), which is serviced by Broll Facilities Management; and one is leased through a DPWI lease that is maintained by the landlord. No maintenance costs have been incurred by the Department, however the Department provides related equipment, appliances and services that are excluded.

Good = 91.4% Fair = 1.3% Poor = 5.6% Lost = 1.2% Damaged = 0.5%

Major maintenance projects that have been undertaken during the period under review Not applicable to the DSBD. Progress made in addressing the maintenance backlog during the period under review, for example, has the backlog grown or become smaller? Is the rate of progress according to plan? If not why not, and what measures were taken to keep on track

70

Department of Small Business Development • PERFORMANCE INFORMATION • Part B