· Leadership : Lack of appropriate oversight to ensure that planned and reported indicators agree; and that targets were in accordance with the National Treasury Framework for Managing Programme Performance Information; as well as inadequate monitoring controls to ensure compliance with applicable legislation. · Financial and performance management : Inadequate processes to ensure the preparation of reliable performance reporting and insufficient monitoring of compliance in the areas of predetermined objectives. The CIPC were addressing issues related to their reporting mechanisms and ensuring that indicators/targets were measurable. In terms of their reporting mechanisms, it was reviewing the processes and systems to extract performance information, as well as reviewing its governance structures and introducing new project delivery methodology to ensure monitoring and achievement of planned targets.

- 6.1.3.2. 2013/14 Financial Year

The CIPC indicated that it had launched the FNB project and its redeveloped online Annual Return System in August 2013, which should enhance efficiencies in service delivery to companies. Penalties for annual returns that could not be submitted on time due to system development were waived. The CIPC was also investigating several avenues to enhance annual return compliance rates from 39 per cent to an initial target of 50 per cent. The implementation of its new organisational structure is progressing well. The CIPC was also in the process of establishing self-service terminals at its new office in Sunnyside, Pretoria. The self-service terminals would integrate fingerprint identification verification when registering a business entity or changing details pertaining to a business entity. Challenges related to its ability to respond to customer queries remained, but the implementation of the Swedish contact centre model has shown a slight increase in the call answered rate. This is expected to improve gradually over time. Although the first phase of data cleansing has been completed, the quality and integrity of the databases require continued work of maintaining updated information and correcting existing information based on the annual returns. This process included the deregistration of dormant business entities. The CIPC has shown improvement in meeting their service delivery targets in terms of processing companies, trademarks, patents and design applications. However, the processing of co-operative applications is lagging behind, mainly as these applications are all manually processed. The automation of these processes are dependent on the finalisation of the new Co- operatives regulations. Furthermore, the establishment of the Co-operatives Development Agency should be expedited to ensure that all co-operatives, especially in rural areas, are assisted and supported. There were also limited staff resources dealing with co-operatives as well as equipment and system challenges. In addition, processing of film copyrights is also delayed. At the end of September 2013, 33 per cent of the 691 cases under investigation were finalised. These cases mostly dealt with unauthorised director changes, reported irregularities from the Independent Regulatory Body for Auditors (IRBA) and internal company disputes.

- 6.1.3.3. 2014/15 MTEF financial allocations

The CIPC intends to increase its main fees at 5 per cent an annum to keep up with inflation and its intellectual property fees at 20 per cent an annum for the next five years, as these have not been adjusted for more than ten years. Furthermore, new sources of income are expected to be realised over the short to medium term.