The Department of Small Business Development (DSBD) maintained an unqualified audit opinion with findings. The main obstacles preventing it from a clean audit is compliance in the Black Business Supplier Development Programme (BBSDP) and Cooperative Incentive Scheme (CIS) incentives environment and a material adjustment in the provision note. DSBD management has a slow response in addressing compliance. There is inadequate implementation and monitoring of the audit action plan to address identified root causes for the repeat findings.
The Small Enterprise Development Agency (SEDA) regressed to an unqualified audit with material findings on compliance with laws and regulations. This is due to SEDA not having adequate controls to collect all revenue from long outstanding debtors and material adjustments made to the submitted financial statements due to material misstatements identified during the audit. SEDA had a slow response in improving critical controls and addressing risk areas. There is inadequate implementation and monitoring of action plans to address the root causes for repeat findings.
The Small Enterprise Finance Agency (SEFA) received a clean audit with no unauthorised, irregular, or fruitless and wasteful expenditure. Prior year irregular expenditure of R7.5 million was reported by SEFA as a result of internal control deficiencies identified in the management of SEFA investment properties. The irregular expenditure has been resolved through expired contracts, and new contracts were facilitated through competitive bidding in line with PFMA requirements. The new board in place for a year, was handling its governance responsibilities well.
Members were concerned about the underspending in the Spaza Shop programme, which has not been fully utilized by people in the townships and rural areas. They were concerned about the running of the Department. One member complained about the current Minister not attending Committee meetings. Members said that vacancies and acting positions were a perennial problem.
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