SOUTH AFRICAN HERITAGE RESOURCES AGENCY DEPARTMENT OF ARTS AND CULTURE 9/20/2017 SOUTH AFRICAN HERITAGE RESOURCES AGENCY DIRECTOR-GENERAL: ARTS AND CULTURE DATE: 03/10/2017 A total of 68%

PRESENTATION OUTLINE ALIGNMENT TO DAC GOALS PERFORMANCE OVERVIEW THREE YEAR PERFORMANCE OVERVIEW THREE YEAR STATEMENT OF FINANCIAL POSITION THREE YEAR INCOME AND EXPENDITURE TRENDS ANALYSIS OF CASH AND CASH EQUIVALENT AUDIT OUTCOMES GOVERNANCE CHALLENGES AND INTERVENTIONS

ALIGNMENT TO DAC GOALS DAC outcome oriented goal DAC Strategic objective Entity strategic objectives and how it links to DAC objective Key outputs/deliverables per objective for 2017/18 A professional and capacitated ACH Sector To build human resource capacity and promote excellence Assert SAHRA’s role as a regulatory body in heritage resources management. Number of Policies, Regulations, norms and Standards approved A SAHRA business model approved by Council.

ALIGNMENT CONTINUES DAC outcome oriented goal DAC Strategic objective Entity strategic objectives and how it links to DAC objective Key outputs/deliverables per objective for 2017/18 An integrated and inclusive society. To lead, coordinate and implement social cohesion programme. Strengthen SAHRA as an agent to promote social cohesion and social upliftment through heritage resources management. Number of heritage Sites inspected Percentage of nominated heritage resources graded Percentage of heritage resources re-assessed and graded Number of heritage resources declared

ALIGNMENT CONTINUES DAC outcome oriented goal DAC Strategic objective Entity strategic objectives and how it links to DAC objective Key outputs/deliverables per objective for 2017/18 A transformed and productive ACH Sector • To develop, protect and promote the cultural and creative sector • To develop, preserve, protect and promote heritage • To develop and promote official languages • To build relationships and partnerships locally and internationally • To provide access to information Build SAHRA’s brand internationally and locally through public awareness Align SAHRA’s initiatives to national socio-economic and developmental objectives through identification, conservation, protection and promotion of Heritage Resources. Number of Publications/ Papers on the heritage resources management developed Number of marketing programmes Implemented

ALIGNMENT CONTINUES DAC outcome oriented goal DAC Strategic objective Entity strategic objectives and how it links to DAC objective Key outputs/deliverables per objective for 2017/18 Number of Community and Stakeholder workshops/meetings to promote the significance of heritage resources Approved CSI Policy and implementation strategy Number of MOU’s and or Partnerships with identified Strategic Institutions

ALIGNMENT CONTINUES DAC outcome oriented goal DAC Strategic objective Entity strategic objectives and how it links to DAC objective Key outputs/deliverables per objective for 2017/18 An effective and efficient ACH Sector. To create a coherent policy and legislative environment for the ACH Sector • To drive integrated outcomes-based research, planning, monitoring and evaluation across the Sector • To implement sound financial management and control systems • To strengthen and modernize archives and records management Systems. Maximise Immovable Heritage Assets for income generation Implement effective and efficient corporate governance systems within SAHRA Number of projects implemented in the Property Maximization strategy Percentage compliant invoices paid within 30 days Unqualified Audit Report Review of the ICT Strategy

PERFORMANCE OVERVIEW (2016/17 financial year)

THREE YEAR PERFORMANCE OVERVIEW DEPARTMENT OF ARTS AND CULTURE 9/20/2017 THREE YEAR PERFORMANCE OVERVIEW 2014/15 2015/16 2016/17 Achieved 80% 81% 68% Not achieved 20% 19% 32% **a total 68% of the targets were achieved in the year under review. A substantial part of the business development that the Entity does is on behalf of the Provincial Heritage Resources Authorities (PHRAs). Thus, the effectiveness of SAHRA’s performance is compromised until the PHRAs have been capacitated and SAHRA is able to entrust them with this work. A total of 68%

THREE YEAR STATEMENT OF FINANCIAL POSITION SAHRA 2014/15 2015/16 2016/17 R’000 Current Assets 78 976 60 313 35 708 Non-Current Assets 146 114 77 502 76 791 Total Assets 137 815 112 499 Current Liabilities 8 611 6 540 8 720 Total Liabilities 16 442 14 507 16 531 Net Asset Value (NAV) 129 672 123 309 95 968

THREE YEAR INCOME AND EXPENDITURE TRENDS SAHRA 2014/15 2015/16 2016/17 R’000 Income 52 459 79 080 55 552 Government Grant 46 581 73 830 51 141 Other Income 5 878 5 250 4 411 Expenditure 52 137 93 874 82 892 Surplus / (Deficit) 322 (14 794) **(27 340) **The deficit is attributable to significant overspending on the side of SAHRA. The entity expenditure for the 2016/17 financial year is in excess of the revenue by 48%. The major cost drivers are salaries and benefits as well as general expenses (Goods and Services).

ANALYSIS OF CASH AND CASH EQUIVALENTS SAHRA 2014/15 2015/16 2016/17 R’000 Cash and Cash Equivalents 77 560 33 830 33 949 Add: Trade and other receivables 524 600 885 Less: Current Liabilities (8 611) (6 540) (8 721) Less: Commitments (3 381) (18 236) (3 750) Net Working Capital/Surplus Funds 66 092 9 654 **22 363 **This comprises of mainly funds received from third parties linked to specific projects. Current commitments amount to R26 500 000. Detailed break-down is reflected on note 4 of the 2016/17 Annual Report.

AUDIT OUTCOMES SAHRA 2014/15 2015/16 2016/17 Audit Outcome Unqualified * SAHRA has reported an irregular expenditure of R49 million that relates to the contract awarded to the service provider in 2015 for the rehabilitation of Delville Wood memorial in France which was condoned by the previous council.

GOVERNANCE 2014/15 2015/16 2016/17 2017/18 Number of Council members 11 12 Number of Council meetings 20 16 3 Number of Council committee meetings 22 9 Attendance rate of Council meetings 95% 98% 99% Number of Audit Committee meetings 6 2 Number of Management meetings 4 Number of Staff meetings 1 .

CHALLENGES AND INTERVENTIONS Details Implications for the institution (financially or otherwise Possible amelioration Council:- - Remuneration - Airfares & Bus Tickets - Accommodation & Meals SAHRA had benchmarked with other DAC Entities who are paying Council preparation fee and a fee for a meeting sitting. SAHRA does not pay for preparation fee hence the decision to pay Council fees Category S and A for the Committees. Current Council Budget - is R1 240m, refer to the breakdown below: Travel (R360 000), Accommodation (R132 000), Council fees (R600 000), Telephone & Fax (R52 800), Catering (R95 000). The Council Annual Planner stipulates clearly the number of meetings to be held per year as they are aligned to the DAC key deadlines. Historically the SAHRA Council was on Pro - Bono. In the 2012/13 financial year it was then resolved that Council must be paid for meetings. This decision was implemented without additional funds being allocated from DAC. Currently the budget is not adequate to cover the operations of the Council. There is over-expenditure even though stringent measures have already been undertaken to reduce the number of meetings and travelling costs. The Department is considering this matter for all Councils of the DAC institutions

CHALLENGES AND INTERVENTIONS Details Implications for the institution (financially or otherwise Possible amelioration Council:- - Provincial Representatives SAHRA Council does not have provincial representation from KwaZulu-Natal Province and the Northern Cape as provided for by the Act. This is in contravention of the National Heritage Act which requires that Provincial MECs must appoint these representatives to the Council. Communication and a number of reminders were sent to the two provinces but not response has been received.

CHALLENGES AND INTERVENTIONS Details Implications for the institution (financially or otherwise Possible amelioration Management:- - The CEO is on suspension Due to ongoing investigation into allegations among others matters the implementation of a project to construct a memorial at Delvillewood in France and the rehabilitation of grave sites in South Africa, Council resolved to place the Chief Executive Officer on precautionary suspension pending the outcome of the investigation. Stability of the entity is affected by the absence of the Accounting Officer, and the appointment of an Internal Executive in an Acting position. To deal with instability issues in the organisation, Council further resolved to appoint one of the Board members as Interim Chief Executive Officer. Annual Cost of Living Adjustment (COLA) SAHRA can not afford the demands of the Unions for the COLA. Current percentage offered by SAHRA is 5,6%. Unions have declared a dispute with the employer. A possibility of an industrial action. SAHRA is moving to implement the 5,6% unilaterally

DEPARTMENT OF ARTS AND CULTURE 9/20/2017 THANK YOU A total of 68%