FIRST QUARTER PERFORMANCE REPORT ACTING DIRECTOR-GENERAL : ARTS AND CULTURE DATE: 23 AUGUST 2016

2 ACRONYMS AND ABBREVIATIONS AbbreviationFull NameAbbreviationFull Name AWHFAfrican World Heritage FundSMSSenior Management Services MPATManagement Performance Assessment Tool MPATManagement Performance Assessment Tool SITAState Information Technology Agency AUAfrican Union ACHArts, Cultural and HeritageMGEMzansi Golden Economy MTEFMedium Term Expenditure Framework NYDANational Youth Development Agency 2

3 PRESENTATION OUTLINE 1.Key Highlights 2.Performance Overview 3.Comparison of Performance 4.Programme-Specific Performance for Performance against Key Programme Indicators 6. Expenditure Report as at 30 June

4 KEY HIGHLIGHTS CELEBRATION OF THE AFRICA MONTH Africa Month celebration under the theme, “Building a Better Africa and a Better World” was launched by Minister Nathi Mthethwa during the opening of the 10 th Anniversary Celebrations of the African World Heritage Fund Seminar (AWHF), on 03 – 04 May 2016 at the Cradle of Humankind in Maropeng, Sterkfontein. 4

5 KEY HIGHLIGHTS The Department of Arts and Culture in partnership with the National Youth Development Agency (NYDA) commemorated the 40 th anniversary of Soweto Students Uprising under the theme: “Youth Moving South Africa Forward”. June 16th commemoration is closely attached to the historical events of 1976 in Soweto, where hordes of learners took to the streets to protest against the arbitrary introduction of Afrikaans as medium of instruction for public schools. COMMEMORATION OF THE YOUTH DAY (16 JUNE 2016) 5

6 KEY HIGHLIGHTS In collaboration with legendary ceramist Mr Simon Masilo the Department held a Master Class on Saturday, 18 June 2016 at Keketso Primary School in Katlehong. 6 ADVANCING LIVING LEGENDS LEGACY AND MASTER CLASSES PROGRAMME

7 KEY HIGHLIGHTS Deputy Minister, Rejoice Mabudafhasi through the National Archives and Records Service of South Africa launched the 2016 National Archives Awareness Week under the theme: “Archives for the protection of human rights, transparency and good governance”. The launch took place on Monday, 09 May 2016 at the Provincial Archives Building in Mbombela, Mpumalanga. The awareness week was rolled out through 4 Districts of Mpumalanga namely: Ehlanzeni, Bohlabela, Gert Sibande, Nkangala. 7 NATIONAL ARCHIVES AWARENESS WEEK IN MPUMALANGA

8 PERFORMANCE OVERVIEW 8

9 COMPARISON OF PERFORMANCE 9

10 PROGRAMME-SPECIFIC PERFORMANCE FOR QUARTER 1:

11 PERFORMANCE AGAINST KEY PROGRAMME INDICATORS 11

12 PROGRAMME 1: ADMINISTRATION PERFORMANCE INDICATOR 1 ST QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION Number of Izimbizo/public participation programmes held 5Eleven (11) Izimbizo were conducted as depicted in the pie chart below. 12

13 PROGRAMME 1: ADMINISTRATION PERFORMANCE INDICATOR 1 ST QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION Percentage of women employed at SMS level. 50%.48% women employed at SMS level. The target was not reached because some of the SMS targeted positions were not filled during this quarter Revised White Paper (RWP) on ACH submitted to Cabinet for approval First and second drafts of RWP on ACH Sub-sector consultations took longer than anticipated thus delaying the development of the revised drafts of the White Paper on ACH The draft of the RWP on ACH will be finalised by 30 August 2016 Percentage of payments made within 30 days (where requisite supporting documents exist) 100%97% of the of the invoices were paid within 30 days Some payment approvals were received after cut-off date for processing payments at year-end. The Department will develop a procedure on payment of suppliers within 30 days 13

14 PROGRAMME 2: INSTITUTIONAL GOVERNANCE PERFORMANCE INDICATOR 1 ST QUARTER TARGETPROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION No. of shareholder compacts concluded 26 shareholders compacts concluded Shareholder compacts for 2016/17 financial year were signed with public entities on 8 April 2016 No. of Outcome 14 reports produced for Cabinet 1Fourth quarter report of Outcome 14 was generated for Cabinet % of all 26 Councils for public entities that are fully constituted. 100% of Councils for public entities fully constituted 96% of Councils for public entities are fully constituted. Only PANSALB is without a Council/Board The Board of PANSALB was dissolved in January A new Board has not been constituted yet as there is still a pending court case relating to the dissolution of the previous Board. 14

15 PERFORMANCE INDICATOR1 ST QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION Number of community conversations held 7 Consolidated community conversation report 2 Community conversations were held in this quarter Efforts were diverted to the development of the annual report on community conversations No. of social cohesion advocates platforms implemented 3 3 social cohesion advocates platforms were implemented 15 PROGRAMME 2: INSTITUTIONAL GOVERNANCE

16 PERFORMANCE INDICATOR1 ST QUARTER TARGETPROGRESS Number of research reports produced and disseminated 5 research reports produced by Cultural Observatory disseminated 5 research reports produced by the Cultural Observatory were disseminated Title of the Research Reports are as follows:  Cultural Diplomacy Country Brief: Malta  Cultural Diplomacy Country Brief: Seychelles  Cultural Diplomacy Country Brief: Tanzania  Monitoring & Evaluation: Analysis of a sample of events under the Mzansi Golden Economy Initiative: NM Mabote Craft and Development Project  Monitoring & Evaluation: Analysis of a sample of events under the Mzansi Golden Economy Initiative: Udumo Entertainers-Youth Dance Event 16 PROGRAMME 3: ARTS, CULTURE PROMOTION AND DEVELOPMENT

17 PROGRAMME 3: ARTS, CULTURE PROMOTION AND DEVELOPMENT PERFORMANCE INDICATOR 1 ST QUARTER TARGETPROGRESS Number of community Arts Centres initiated, maintained and upgraded Phase 1 of project plan implemented Feasibility study for Polokwane Theatre underway Number of infrastructure refurbishment projects supported 4 community arts centre refurbishment projects supported Adjudications of proposals from Provinces is underway. Noteworthy is that there has been delays in provincial refurbishment submissions 17

18 PERFORMANCE INDICATOR TARGET 1 ST QUARTER TARGET PROGRESS Number of flagship & regional festivals supported 256 flagship & regional festivals supported 6 flagship & regional festivals were supported 18 ProvinceName of Flagship EventAmount Spent Western CapeCape Town International Jazz festival R2,001, KwaZulu- NatalIndoni R9,000, KwaZulu- NatalSouth African Music Awards R1, Miami & KwaZulu- NatalMiami Winter Festival R2, MpumalangaInnibos R1, Eastern CapeNational Arts Festival R4, PROGRAMME 3: ARTS, CULTURE PROMOTION AND DEVELOPMENT

19 PROGRAMME 4: HERITAGE PRESERVATION AND PROMOTION PERFORMANCE INDICATOR 1 ST QUARTER TARGETPROGRESS Number of Government Gazette publications per annum as part of the Geographical Names plan. 1 One Government Gazette was published on 17 June Geographical names were standardized Number of accepted disposal authorities issued. 3 accepted disposal authorities 3 Applications were accepted and 3 disposal authorities were issued. Number of schools and ECDCs receiving flags and flagpole installations Appointment of service providers to roll out AU flag installations project. 500 AU Flag installations A Service provider has been appointed to supply the AU Flags. 19

20 PROGRAMME 4: HERITAGE PRESERVATION AND PROMOTION BURSARY AWARDED TO 84 STUDENTS

21 PERFORMANCE INDICATOR TARGET1 ST QUARTER TARGET PROGRESSVARIANCE/COMMENTS or PROGRESS DESCRIPTION Number of handheld flags distributed per year hand held flags were distributed as follows: 21 PROGRAMME 4: HERITAGE PRESERVATION AND PROMOTION ProvinceNumber Gauteng20000 Mpumalanga1400 Western Cape900 KwaZulu- Natal16000 Northern Cape0 Eastern Cape5000 Limpopo1700 Free-State0 North- West6250 Other35970

22 PROGRAMME 4: HERITAGE PRESERVATION AND PROMOTION PROGRESS ON 23 NEW COMMUNITY LIBRARIES

23 PERFORMANCE INDICATOR TARGET1 ST QUARTER TARGET PROGRESS 100% of schools ( schools) supported through provision of national symbols toolkit produced and made available National symbols toolkits for 6430 schools produced and made available Booklets have already been procured and will be distributed in the second quarter 23 PROGRAMME 4: HERITAGE PRESERVATION AND PROMOTION

24 VERIFICATION OF PERFORMANCE INFORMATION BY INTERNAL AUDIT Noteworthy is that performance information projected on slides above is management view of how the Department has performed The performance Information is being subjected to scrutiny through Internal Audit verification exercise to ascertain management view 24

25 EXPENDITURE REPORT ENDING 30 JUNE

26 EXPENDITURE REPORT ENDING 30 JUNE Summary of Budget vs Expenditure - per Programme; and - per Economic Classification 2. Explanation of Expenditure variance - per Economic Classification 3. Remarks 26

27 SUMMARY OF TOTAL BUDGET VERSUS EXPENDITURE PER PROGRAMME Programmes Main Appropriation 2016/17 Expenditure 30 June 2016 Total Available % Spent R’000 Administration % Institutional Governance % Arts & Culture Promotion & Development % Heritage Promotion & Preservation % Total %

28 BUDGET VERSUS EXPENDITURE PER PROGRAMME ILLUSTRATED ON A GRAPH 28

29 SUMMARY OF TOTAL BUDGET VERSUS EXPENDITURE PER ECONOMIC CLASSIFICATION Economic Classification Main Appropriation 2016/17 Expenditure 30 June 2016 Total Available % Spent R’000 Compensation of Employees % Goods & Services % Provinces & Municipalities % Dept Agencies & Accounts (Cur) % Dept Agencies & Accounts (Cap) % Non Profit Org (Cur) % Non Profit Org (Cap) % Households % Public Corporations (Cur) % Public Corporations (Cap) % Foreign Gov & International Org % Capital Assets (Other machinery and equipment) % Buildings & other fixed structures % Software and other intangible % Payments for financial assets % Total %

30 BUDGET VERSUS EXPENDITURE PER ECONOMIC CLASSIFICATION ILLUSTRATED ON A GRAPH 30

31 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION

32 Economic classification Description of the line itemRemarks Compensation of Employees The line item includes remuneration in cash, social contributions by the employer, basic wages and salaries, overtime, remuneration of nightshift, cost of living allowances, house allowances, bonuses, pension, medical aid etc. An amount of R55 million (23%) has been incurred as at 30 June In order to remain within the set ceiling amount over the MTEF, the Office of the CFO together with HRM went through an extensive exercise to align funded positions to the available resources starting in the current financial year. This exercise was done for the 2017 MTEF process. The department will therefore only fill the most critical positions before the end of the financial year. 32 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION

33 Economic classification Description of the line itemRemarks Goods and Services The item includes payments for all goods and services to be used by a government unit i.e. goods or services of a current nature, excluding purchases of capital assets. An amount of R104 million (29%) has been incurred as at 30 June EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION

34 Economic Classification Description of the line itemRemarks Provinces and Municipalities (Conditional Grant on Community Libraries ) The expenditure relates to the transfers for the Conditional grant on Community Libraries and funds are transferred to various Provinces on a quarterly basis, including MGE projects. An amount of R203 million (15%) has been transferred as at 30 June 2016 to the various Provinces. The transfers to Provinces were based on the approved business plans. 34 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION

35 PROVINCIAL CONDITIONAL GRANT EXPENDITURE PER PROVINCE Per Province: Division of Revenue Act Total available Actual transfer by National Provincial Actual payments % Transferred of National allocation % Actual payments of total available R’000 Eastern Cape %12.7% Free State %12.6% Gauteng %1.1% KwaZulu-Natal %5.7% Limpopo %28.8% Mpumalanga %30.9% Northern Cape % North West %12.6% Western Cape %1.5% Grand Total %12.4%

36 Economic Classification Description of the line itemRemarks Departmental Agencies & Accounts (Current Transfers) This expenditure item relates to subsidies to the Departments’ Public Entities. The Performing Arts Institutions transfers are processed quarterly, Libraries and Heritage Institutions on a monthly basis. An amount of R318 million (25%) has been spent as at 30 June The process to identify an entity to host the Venture Capital Fund was only started during April It is envisaged that the programme will start in August EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION

37 Economic Classification Description of the line itemRemarks Departmental Agencies & Accounts (Capital) This expenditure item relates to maintenance, upgrade and refurbishment of the Departments’ Playhouses, Museums and Libraries as well as the construction of Legacy Projects. An amount of R25 million (9%) has been incurred as at 30 June 2016 under this line item. Transfers to Performing Arts Institutions will only be processed by end of July EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION

38 Economic Classification Description of the line itemRemarks Non Profit Institutions (NPI) - Cur Non Profit Institutions (NPI) - Cap Households This expenditure relates to subsidies to BASA, Blind SA, Engelenburg Arts Collection and MGE projects. This expenditure item relates to all the financial assistance projects that the Department fund during the financial year, employer social benefits and MGE projects. A current transfer of R53 million (33%) has been incurred, the bulk of this relates to MGE Africa Month projects. There is no expenditure on capital transfer as at 30 June An amount of R10 million (38%) has been incurred as at 30 June The high spending is attributed to Language bursaries which were processed according to the agreement entered into between the Universities and the Department. 38 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION

39 Economic Classification Description of the line itemRemarks Public Corporations - Cur Public Corporations - Cap This expenditure relates to transfer payments to MGE, Cultural Development, Human Language Technologies and Institutional Governance projects. A current transfer of R37 million (39%) has been incurred with the bulk relating to MGE transactions. There is no expenditure on capital transfer as at 30 June EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION

40 Economic Classification Description of the line itemRemarks Foreign Government & International Organisations Payments for Capital Assets - Other machinery and equipment This budget relates to transfers made to Foreign Government and International Organisations This budget relates to the purchasing of machinery and equipment including IT equipment as well as acquisition of a building and other fixed structures. There is no expenditure incurred under this line item as at 30 June EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION 40

41 Economic Classification Description of the line itemReason for variance Buildings and other fixed structures Software and other intangible assets Payment for financial assets This budget relates to acquisition of buildings and other fixed structures. This budget relates to the purchasing of computer software. This item consists mainly of transactions that create or increase a debtor’s outstanding amount. These transactions are treated as expense items but are subsequently recovered from affected officials An amount of R17 million (7%) has been incurred under this line item as at 30 June An amount of R686 thousand (11%) has been incurred under this line item as at 30 June Delays were experienced with finalisation of the ECM service level agreement with SITA impacting on them invoicing the Department. An amount of R64 thousand has been incurred as at 30 June EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION 41

42 REMARKS The department incurred an expenditure totaling R824 million (20%) relative to a budget of R4,1 billion as at 30 June

43 THANK YOU