1. Economic Development Department 4th quarterly report
Presentation to the
Standing Committee on Appropriations
3 August 2011

2. Introduction
The information presented is based on 2010/11 Audited Annual Financial Statements
The Auditor-General expressed an unqualified audit opinion on the 2010/11 Annual Financial Statements 2

3. Overview of expenditure
The total adjusted budget for 2010/11 financial year was R million
Expenditure for 12 months of 2010/11 is R million or 89% of the adjusted appropriation
Excluding transfers expenditure was R 44.2 million or 48% of adjusted appropriation of R 91.3 million
No comparison with 2009/10 as EDD as a Budget Vote was in its first financial year of operation 3

4. Context of expenditure
2010/11 was EDD’s first full year of operation
EDD staff grew from 18 to 79 over the financial year
Challenges experienced in recruiting suitably qualified and experienced staff
Compensation of employees a major cost driver (60% of budget) which accounts for lower expenditure
As will be seen below, EDD has applied for rollovers of committed funds totaling R35 million, which may change expenditure picture 4

5. Overall expenditure 5

6. Programme 1
Actual spending for Programme 1 at 31 March 2011 is R 35 million or 78% of budget. 6

7. Programme 2
Actual expenditure for Programme 2 amounts to R 6.6 million or 39% of the budget.
Slow spending on this programme due to slow rate of filling posts as EDD was in its first year of operation 7

8. Programme 3
Financial Year expenditure for Programme 3 was R 359 million or 95% from budget of R 376 million
R356.5 million was transferred to EDD’s Public Entities 8

9. Programme 4
Year to date spending for programme 4 was R or 4.3% from adjusted budget of R million
Slow spending on this programme due to slow rate of filling posts as EDD was in its first year of operation 9

10. Employment and vacancies10

11. Rollovers requested Rollovers
EDD has requested National Treasury to rollover 2010/11 committed but unspent funds to 2011/12 financial year, amounting to R 35,050 million
The decision from NT expected in the first week of August 2011
Roll-overs were requested for the following: 11

12. Overview of revenue
Revenue collection for 2010/11 totaled R 547 million
Main revenue generator for EDD is fines and penalties from Competition Commission
Revenue projected exceeded as a result of Pioneer Food settlement among others 12

13. Concluding remarks
EDD has done well to achieve an unqualified audit in its first full year of operation
It has made a concerted effort to fill posts as rapidly as possible
60% of funded posts filled in the financial year
Expenditure will improve as posts are filled 13

14. Thank you