2012/13 4 th QUARTER EXPENDITURE REPORT AND PERFORMANCE REVIEW Sibusiso Xaba Director-General: Arts and Culture

PRESENTATION OUTLINE  Performance Overview  Budget and Expenditure  Explanation of Expenditure per Economic Classification  Review of Programme Performance on Key Indicators  Risk Management 2

PERFORMANCE OVERVIEW 3

COMPARATIVE ANALYSIS OF THIRD AND FOURTH QUARTER PERFORMANCES FOR 2012/13 4

SUMMARY OF BUDGET VS EXPENDITURE PER PROGRAMME AND PER ECONOMIC CLASSIFICATION 5

SUMMARY OF BUDGET VS EXPENDITURE PER PROGRAMME ProgrammeFinal Appropriation 2012/13 Actual Expenditure Variance% Spent R’000 Administration 236,065235, % Performing Arts 627,140622,0955, % National Language Services 108,780108, % Cultural Development 151,485146,5744, % Heritage Promotion 825,219822,0973, % National Archives and Library Services 723,781721,7412, % Grand Total 2,672,4702,656,47115, % 6

Summary of Budget vs Expenditure per Economic Classification Programme2011/122012/132013/142014/15 4 Economic ClassificationFinal Appropriation 2012/13 Actual Expenditure Variance% Spent R’000 Compensation 173, % Goods & services 315,322313,1152, % Conditional grant 564, % Payment for financial assets % Agencies & accounts (Includes gifts) 954, % Capital Works 482,950475,4807, % Non-profit institutions 12, % Households 162,204157,7014, % Machinery & equipments 6,7925,1081, % Software and intangible assets % Heritage assets % Grand Total 2,672,4702,656,47115, % 7

EXPLANATION PER ECONOMIC CLASSIFICATION 8

EXPLANATION OF EXPENDITURE PER ECONOMIC CLASSIFICATION Compensation of Employees, Non-Profit Institution, Agencies & Accounts (Subsidies) and Conditional Grant 100% of budget has been spent/transferred as at 31 st March Attached is the detail of the Conditional Grant reasons for variance. The detail of the transfer by the Department and actual spending by Provinces is as follows: 9

EXPLANATION OF EXPENDITURE OF CONDITIONAL GRANT PER PROVINCE Province Adjusted Appropriation 2012/13 Transferred by National (Division of Revenue Act, 2012) Provincial roll-overs Total Available Provincial actual payments Preliminary (over)/under % Actual payments of total available % transferred of National allocation R’000 Eastern Cape78,0589,63487,69265,71421, %100% Free State50,304 2,491 52,795 48,502 4, % 100% Gauteng56, ,762 57,462 (700)101.2% 100% KwaZulu-Natal48, ,633 (14)100.0% 100% Limpopo68,822 13,871 82,693 49,722 32, % 100% Mpumalanga68,822 3,883 72,705 66,983 5, % 100% Northern Cape72, ,026 62,674 10, % 100% North West64,973 19,761 84,734 62,937 21, % 100% Western Cape56, % 100% Total564,574 50, , ,756 96, % 100% 10

EXPLANATION OF EXPENDITURE PER ECONOMIC CLASSIFICATION Goods and Services An amount of R313 million (99.3%) as at 31 st March 2013, which includes payments for financial assets. The saving is due to advertisement of tender for the costing of Community Library Bill delayed. 11

EXPLANATION OF EXPENDITURE PER ECONOMIC CLASSIFICATION (CONT …) Households This expenditure item relates to all the financial assistance projects that the Department funds during the financial year An amount of R158 million (97.2%) has been spent as at 31 st March 2013 The reason for non payment of the three projects of Mzansi Golden Economy (MGE) not processed was due to expired tax clearance certificate, banking details rejected by safety web and payment submitted after system closure 12

EXPLANATION OF EXPENDITURE PER ECONOMIC CLASSIFICATION Departmental Agencies Accounts (Capital Works) An amount of R475 million (98.4%) of the budget has been spent as at 31 st March 2013 The under-expenditure is due to projects that were not implemented, i.e. the two digital screens projects for NFVF 13

EXPLANATION OF EXPENDITURE PER ECONOMIC CLASSIFICATION Capital Assets / Machinery and Equipment This budget relates to the purchasing of machinery and equipment including the ICT equipment and heritage asset An amount of R5,349 million (76%) has been spent as at 31 st March 2013 which includes machinery and equipment, heritage and software and intangible assets The reason for under-expenditure is the late delivery of invoices by the suppliers after closure 14

DETAIL OF BUDGET VS. EXPENDITURE PER PROGRAMME AND ECONOMIC CLASSIFICATION 15

PROGRAMME 1: ADMINISTRATION Final Appropriation 2012/13 Actual Expenditure Variance% Spent R’000 Compensation79, % Goods and services152, % Machinery and equipment3,7283, % Households (leave gratuity) % Software & intangible assets % Departmental agencies & accounts (gifts and donations) % Payment for financial assets % Heritage assets % Total236,065235, % 16

PROGRAMME 2: PERFORMING ARTS Final Appropriation 2012/13 Actual Expenditure Variance % Spent R’000 Compensation8, % Goods and services36, % Departmental agencies506,090501,5904, % Gifts and donations % Non-profit institution 6, % Households 69,13068, % Machinery and equipment % Payment for financial assets % Total 627,140622,0955, % 17

PROGRAMME 3: NATIONAL LANGUAGE SERVICE Final Appropriation 2012/13 Actual Expenditure Variance % Spent R’000 Compensation 21, % Goods and services6, % Departmental agencies & accounts 69, % Households 9, % Machinery and equipment % Payment for financial assets % Total108,780108, % 18

PROGRAMME 4: CULTURAL DEVELOPMENT Final Appropriation 2012/13 Actual Expenditure Variance % Spent R’000 Compensation20, % Goods and services58,59957, % Gifts & donations % Households71,53667,4924, % Payment for financial assets % Machinery and equipment % Total 151,485146,5744, % 19

PROGRAMME 5: HERITAGE PROMOTION Final Appropriation 2012/13 Actual Expenditure Variance% Spent R’000 Compensation16, % Goods and services46, % Departmental agencies750,429747,4592, % Non-profit institutions % Households11,06311, % Payment for financial assets % Machinery and equipment % Total825,219822,0973, % 20

PROGRAMME 6: NATIONAL ARCHIVES AND LIBRARY SERVICES Final Appropriation 2012/13 Actual Expenditure Variance % Spent R’000 Compensation26, % Goods and services14,25812,7901, % Conditional grant564, % Departmental agencies and accounts110, % Non-profit institutions6, % Households % Machinery and equipment % Payments for financial assets % Total723,781721,7412, % 21

EXPLANATION OF PROGRAMME PERFORMANCE ON KEY INDICATORS 22

PROGRAMME 1: ADMINISTRATION OBJECTIVE: To provide core support services to the department to ensure the realisation of enhanced governance and accountability INDICATOR4th QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION % of successfully attained targets 80%57% of the Planned targets were achieved and 43% of planned targets were not achieved Unrealistic targets Reprioritization of budget Delays in procurement of services Annual review of the organisational structure in line with the departmental strategy. Review of the organisational structure An Organisational Functionality Assessment (OFA) was undertaken as part of the review of the organisational structure Delayed implementation of organisational structure As corrective action - implementation of the microstructure will be finalised during the 1st quarter of 2013/

PROGRAMME 1: ADMINISTRATION…cont OBJECTIVE: To provide core support services to the department to ensure the realisation of enhanced governance and accountability INDICATOR4th QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION % Females Employed at SMS Level 50%41.5% Females at SMSOnly one post was filled in the 4th quarter (i.e. Director: Internal Audit - African Female). Although the DDG: Arts and Culture Development and Promotion was supposed to have commenced duty in the 4th quarter, she only assumed duty in April 2013). The 2 remaining vacant DDG posts (Group Services and CFO), Director: Legal Services and CD: Heritage still need to be finalised). Once approved, the female representivity should significantly improve 24

PROGRAMME 1….Cont OBJECTIVE: To provide core support services to the department to ensure the realisation of enhanced governance and accountability INDICATOR4th QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION % of Capital Works budget spent to upgrade Public Entity facilities 100%98% (475 million) of R483 million of the total Capital Works budget was spent Department of Public Works challenges on slow implementation of the Capital Works projects. New projects will be implemented by the Public Entities Number of Izimbizo arranged annually 4 follow up Izimbizo3 Izimbizo were conducted Scheduling difficulties have impeded arranging izimbizo Lack of clarity on what constitutes an izimbizo Henceforth, block the annual calendars of Minister and Deputy Minister in line with planned izimbizo by line function to ensure availability Number of national social cohesion summits hosted Incorporate summit recommendations and stakeholders feedback into the social cohesion strategy. Achieved - The social cohesion summit recommendations were consolidated into a costed social cohesion implementation framework 25

PROGRAMME 2: PERFORMING ARTS OBJECTIVE: To promote arts & culture in SA and mainstream its role in social development INDICATOR4th QUARTER TARGETPROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION Number of Cultural programmes supported Receive Cultural programme Close -out Reports from provinces Achieved - Cultural programmes Close -out Reports from provinces received Community Arts Centres’ Audit Report Receive and present interim Audit Report of CAC CAC progress Audit was not yet developed Late appointment of service providers delayed the CAC Audit commencement Completion of the CAC Audit will be completed by end September 2013 Number of programmes targeting Vulnerable groups 2 programmes implemented in collaboration with civil society Achieved - 2 programmes implemented in collaboration with civil society as follows: Arts Access (for Juvenile Facility) implemented in the Free State and Women in the Arts Economic Empowerment workshop in Welkom, Free State 26

PROGRAMME 3: NATIONAL LANGUAGE SERVICE OBJECTIVE: To develop, promote and protect all official language through policy formulation and implementation. INDICATOR4th QUARTER TARGET PROGRESS Proportion of functional translation and editing as per clients request Receipt, assessment and further processing of documents to be translated and/or edited Official Languages: 157 documents received and completed; Foreign languages: 70 documents received and completed Number of bursaries offered to undergraduate and graduate students 20 students awarded bursaries and year end reports received Achieved students were awarded bursaries. The number of students increased from 349 because UNISA registered more students during the second semester. 27

PROGRAMME 3: NATIONAL LANGUAGE SERVICE..Cont OBJECTIVE: To develop, promote and protect all official language through policy formulation and implementation. INDICATOR4 th QUARTER TARGETPROGRESS Number of terminologies developed per domain 872 terminologies developed 872 Arts & Culture terminologies were finalised during the period under review terminologies developed HSEMS terminologies were finalised during the period under review. 926 terminologies developed 926 Mathematics terminologies were finalised during the period under review terminologies developed 1490 Life Orientation terminologies were finalised during the period under review. 700 terminologies developed 700 Elections terminologies were finalised during the period under review. 28

PROGRAMME 4: CULTURAL DEVELOPMENT OBJECTIVE: To improve development opportunities for SA Arts & Culture, through partnerships to ensure sustainability of the sector INDICATOR4 th QUARTER TARGET PROGRESS VARIANCE/COMMENTS or PROGRESS DESCRIPTION Signing of Continental Multilateral Treaty (Charter for African Cultural Renaissance) Obtain Cabinet approval for South Africa becoming a state party Consultation with relevant department were undertaken Cabinet Memorandum for approval has been routed to cabinet as at 26 March The submission to Cabinet is on route and approval is expected by end of 1st quarter 2013/14. Implementation of the South Africa -French Seasons Preparation for the SA Season in France The 5th Joint Organising Committee (JOC) took place in France on January 2013 for the preparation of the SA Seasons in France in

PROGRAMME 4: CULTURAL DEVELOPMENT….cont OBJECTIVE: To improve development opportunities for SA Arts & Culture, through partnerships to ensure sustainability of the sector INDICATOR4 th QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION Number of partnerships supported and implemented in the Cultural Industries Reporting on the programs partnered and supported Achieved- The reporting was done on the programmes that were implemented during period and these programmes are as follows; Big Fish, Script to Screen, Eco Design, Thuthuka Jewellery, Emerging Creates Number of institutions established and supported NaCISA legal status operational The NaCISA legal status is not yet operational, however a submission was prepared for single source service provider to engage a registration of the NaCISA as a legal entity Closed tender with new specification will be drawn and service provider will be appointed before the end of first quarter of 2013/14 FY. 30

PROGRAMME 5 : HERITAGE PROMOTION OBJECTIVE: Preserve, protect and promote SA’s cultural & heritage through policies for socio-economic development, social cohesion and national identity INDICATOR4 th QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION Number of agreements implemented Finalise the signing of the MOU by the two departments Achieved - MOU finalised between DAC and NDT. Moreover, joint pilot projects have been initiated (identified) and forwarded to NDT Number of heritage institutions established Initiate the implementation of phase two of the museums plans (phase two of master plan - LJ Dube Master plan) Final budget received from the Department of Public Works Approval of final budget Master plan has been approved. Prioritised project elements have been costed and authorised. The design drawings have been completed. Procurement, communication and risk management have been done. 31

PROGRAMME 5: HERITAGE PROMOTION....cont OBJECTIVE: Preserve, protect and promote SA’s cultural & heritage through policies for socio- economic development, social cohesion and national identity INDICATOR4 th QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION Number of government gazette publications on standardized geographical names One (1) Government Gazette publication by 31 March Government Gazette published Number of national flags and flag poles installed in schools 500 National flags and flag poles installed in schools No flags were installed Provincial service provider will be appointed to install the flags in the 2013/14 FY 32

PROGRAMME 5: HERITAGE PROMOTION….cont OBJECTIVE: Preserve and promote cultural heritage through the commemoration and celebration of historic and national days as well as the popularisation of national symbols INDICATOR4th QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION Number of national symbols exhibitions and workshops held 2 workshops on national symbols held Achieved – 2 workshops held during the period under a review Number of educational publications approved, produced and distributed 1 educational publications on national symbols approved, produced and distributed copies of National Identity Passports distributed 33

PROGRAMME 6: NATIONAL ARCHIVES AND LIBRARY SERVICES OBJECTIVE: Archives and record management INDICATOR4 th QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION 90 percent (%) of requests received to be processed within 30 days 100% completed (03 requests were received and dealt processed Number of Oral History projects conducted 1 Oral History project 1 Oral History project was not undertaken The annual targets was achieved earlier than anticipated Number of archives outreach programmes implemented 1 Archives outreach programme implemented Achieved - 3 Outreach activities were undertaken in FS Mangaung 28 Jan - 01 Feb 2013, GP March 2013 and Friends of the Archives on January

PROGRAMME 6: NATIONAL ARCHIVES AND LIBRARY SERVICES…..cont OBJECTIVE: Archives and record management INDICATOR4 th QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION Number of exhibitions showcased 1 exhibition developed Achieved - 1 exhibition developed and exhibited in the Sedibeng Municipality on 21 March 2013 Number of Community Libraries built 13 new Libraries built 7 new libraries were completed; GP - 1 Oliefansfontein; LP - 3 Mulati; Saselemane & Shongoane; NC - 1 Sesheng; NW - 1 Letsopa; WC - 1 Vredenburg Number of Community Libraries upgraded 35 existing library structures upgraded 19 upgrades were completed FS - Oppermansgronde GP - Meyerton ICT Centre & Sebokeng Zone 13; NC - 3 Hantam, Van Wyksvlei & Rosedale; NW - 2 Bloemhof & Schweizer Reneke; WC - 11 Hermanus, Zwelihle, Mount Pleasant, Kleinmond EC and NC did not achieve their targets as per the plan EC complained about the late appointments of service providers by the DPW; 35

PROGRAMME 6: NATIONAL ARCHIVES AND LIBRARY SERVICES….cont OBJECTIVE: Archives and record management INDICATOR4 th QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION Number of Library material purchased library material purchased Total of library material purchased for the 4th quarter EC ; FS ; KZN LP MP NC NW ; WC NW - Tender was approved late into the financial year LIMP - there was no qualifying service provider to be appointed for this service GP - still has not received reports from the municipalities during the time of reporting 36

RISK MANAGEMENT REPORT FOR THE THIRD QUARTER 37

OPERATIONAL RISK MITIGATION STATUS AT DEPARTMENTAL LEVEL- 4th QUARTER 38

PROGRAMME 01-RISK MITIGATION STATUS 39

PROGRAMME 01- DETAILED 4th QUARTER MITIGATION STATUS 40

PROGRAMME 01- ACHIEVED MITIGATION RESULTS 1.Corporate Governance Manual 2.Quarterly Financial Analysis of Public Entities 3.Centralised Financial Payments Unit 4.Reviewed PMDS tool 5.PILIR awareness rolled out 6.Disaster Recovery Testing Rolled Out 7.Quarterly Fraud Indicator Audits 8.Performance Measurement Templates modified 9.Security check-points in operation 10.Pre-employment Vetting process expedited 11.Social Cohesion consultative summits rolled out 12.SCM Database review and updated 13.Bid Specification Committee in place 14.Contract Management unit established 41

DELAYED MITIGATION/ ABSORBED RISKS PROGRAMME Centralised procurement process 2. Establishment of a Project Management Unit ( Capital Projects) 3. Performance Evaluation Tool 4. Departmental performance evaluation policy 5. Implementation of the IT Governance Framework 6. Implementation of the IT Enterprise Framework 7. Implementation of Enterprise Content Management 8. Key business mapping (knowledge management) 9. Partial implementation of the HR Vacancy Management Plan 42

PROGRAMME 02- 4th QUARTER STATUS REPORT 43

DELAYED MITIGATION/ ABSORBED RISKS PROGRAMME 02  Audit of Community Art Centres, to clear roles & responsibilities (re- spheres of government).  Full implementation of allocated MGE projects 44

PROGRAMME 03- 4th QUARTER STATUS REPORT 45

PROGRAMME 03-ACHIEVED MITIGATION REPORT  Roll of Human Technologies Projects  Successful migration of the (Tridos Multiterm) to TMS (Terminology Management System)  Successful Data-base veracity process  Hosting of the TMS on the Departmental servers  Initiated performance relations between DAC and the Department of Education ( Basic Education and Higher Learning) 46

PROGRAMME 04(CULTURAL DEVELOPMENT)- 4 th QUARTER STATUS REPORT 47

PROGRAMME 04- INTERNATIONAL RELATIONS 4 TH QUARTER REPORT 48

PROGRAMME 04- ACHIEVEMENTS AND DELAYED RISK MITIGATION 49 1.Approved artworks policy 2.Delayed establishment of the Art-bank ( feasibility study ) 3.Delayed establishment of an institution ( Sect 21) S.A. Book Development Council 4.No Cultural Industries policy ( music and craft) 5.No Stakeholder Engagement Strategy 6.Lack of integration of the Cultural Diplomacy into SA Foreign policy priorities

PROGRAMME 05- 4th QUARTER STATUS REPORT 50

ACHIEVED AND DELAYED MITIGATION- PROGRAMME Appointed Heraldry Council 2. Delayed implement costing of the Liberation Route Implementation strategy 3. No finalised legislative framework for heritage institutions. 4. Non- revised Heraldry Act

PROGRAMME 06- 4th QUARTER STATUS REPORT 52

ACHIEVED AND DELAYED MITIGATION - PROGRAMME In-progress Project upgrade of the National Archives 2. Delayed appointments of the National Archives Council (provincial level) 3. Undetermined impact analysis on outreach initiatives conducted by National Archives 4. No finalised Virtual Private Network arrangement for (DAC) to benefit Archives, Film and Video end-users

THANK YOU 54