MARKET THEATRE FOUNDATION DEPARTMENT OF ARTS AND CULTURE 9/12/2018 MARKET THEATRE FOUNDATION ACTING DIRECTOR-GENERAL: ARTS AND CULTURE DATE: 04/05/2017

PRESENTATION OUTLINE Background Income and Expenditure trends Performance Overview Audit Outcome Selected Audit Findings Governance Alignment of MTF and DAC Goals Other matters: Windybrow Theatre Closure

BACKGROUND Market Theatre Foundation is a schedule 3A public entity. The Foundation was established in terms of the Cultural Institutions Act, 1998 (Act No. 118 of 1998). The Foundation receives institutional transfers from the Department to finance its operations and address its Infrastructure needs.

INCOME AND EXPENDITURE TRENDS ITEM 2013/14 2014/15 2015/16 2016/17 (31 December 2016) R’000 Income 62,681 85,521 95,895 17,037 Government Grant 43,185 69,694 73,422 10,605 Own Income 19,496 15,827 22,473 6,432 Expenditure (47,274) (46,362) (54,252) (17,440) Surplus/Deficit 15,407 39,159 41 643 (403)

PERFORMANCE OVERVIEW

THREE YEAR PERFORMANCE OVERVIEW PROGRESS 2013/14 2014/15 2015/16 2016/17 (31 December 2016) Achieved 75% 80% 68% 66% Not achieved 25% 20% 32% 34%

AUDIT OUTCOMES 2012/13 2013/14 2014/15 2015/16 Unqualified with findings

SELECTED AUDIT FINDINGS Inadequate compliance with legislation pertaining to Irregular Expenditure. Lack of accurate or complete performance reports which are supported by verification sources.

GOVERNANCE GOVERANCE STRUCTURES Council The Council of the Market Theatre Foundation is fully constituted as at 31 December 2016. Management The Market Theatre Foundation has Chief Executive Officer and the Chief Financial Officer in place.

GOVERNANCE… MEETING FREQUENCY AND ATTENDANCE 2013/14 2014/15 2015/16 2016/17 Number of Council members 9 8 Number of Council meetings 4 6 5 Number of Council committee meetings 7 Attendance rate of Council meetings 81% 73% 84% 93% Number of Audit Committee meetings Number of Management meetings 10 11 Number of Staff meetings 12

ALIGNMENT OF MTF AND DAC GOALS DAC STRATEGIC GOALS DAC STRATEGIC OBJECTIVES MTF STRATEGIC OBJECTIVES KEY OUTPUTS An integrated and inclusive society To lead coordinate and implement social cohesion programme To identify, develop, host and produce performing art productions to progressively advance the cultural wellbeing of all South Africans 20 productions staged. 75 000 audience attending. 1100 visitors to exhibitions. 1 publication produced. A transformed, and productive ACH sector To develop, protect and promote the cultural and creative sector To promote the activities of the MTF in order to promote and enhance the brand of the MTF within South Africa 11 stakeholder newsletters. 200 newspaper adverts. 5.5 million publicity value.

ALIGNMENT OF MTF AND DAC GOALS DAC STRATEGIC GOALS DAC STRATEGIC OBJECTIVES MTF STRATEGIC OBJECTIVES KEY OUTPUTS A professional and capacitated ACH sector To build human resource capacity and promote excellence To identify, develop and contract individuals so as to increase the number of professionals within South Africa 100 directors, actors, designers and technical personnel identified for development and/or empowerment. To train and develop interns, students and community theatre practitioners 20 students enrolled for drama course.

ALIGNMENT OF MTF AND DAC GOALS… DAC STRATEGIC GOALS DAC STRATEGIC OBJECTIVES MTF STRATEGIC OBJECTIVES KEY OUTPUTS A professional and capacitated ACH sector To build human resource capacity and promote excellence To empower students, individual participants in photography 20 individuals registered in the structured training initiatives such as Advanced Programme in Photography, Photojournalism and Documentary Photography Programmes. 65% of individuals successfully completed various training initiatives mentioned above.

OTHER MATTERS: WINDYBROW THEATRE

OPERATIONAL CHALLENGES Since 2013, the Department had been inundated with the complaints of ongoing infighting between the Council and the Executive Management of the Windybrow Theatre. The Council and the management disagreed on how the affairs of the entity should be managed. The infighting between the Council and management compromised the operations of the institution. The Department made several attempts to resolve the conflict without success. As a measure of last resort, a decision was taken by the Department to dissolve the Council of the then Windybrow Theatre. The Council of the Market Theatre Foundation was appointed as an Accounting Authority of the entity.

APPROVAL OF AMALGAMATION The Minister approved that the Windybrow Theatre be amalgamated into the Market Theatre Foundation to form a new organisation. A Joint Operations Committee (JOC) was formulated to oversee the process of integrating the Windybrow Theatre into the Market Theatre Foundation. National Treasury and Portfolio Committee on Arts and Culture were informed of the above process. A due diligence report was shared with both the National Treasury and Portfolio Committee. National Treasury directed that the amalgamation must take place on or before 1 April 2016 so that the amalgamation can be aligned with the new financial year and National Treasury budget processes.

AMALGAMATION: PROGRESS TO DATE… The Department prepared the necessary notice in the form of a gazette. The notice was approved by the Minister of Arts and Culture on 2 March 2016. The gazette was published on 18 March 2016. The National Treasury confirmed the delisting of Windybrow Theatre as a schedule 3A public entity in terms of the Public Finance Management Act on 2 February 2017.

IMPLICATIONS OF AMALGAMATION Amalgamation implies the consolidation of the following into one: Council; Audit Committee; Other Council subcommittees; Management; Staff members; Strategic and Annual Performance Plans; Annual and quarterly reports; Budget allocation; Assets and Liabilities; and MTEC & ENE databases. Procurement Plans and Policies.

DEPARTMENT OF ARTS AND CULTURE 9/12/2018 THANK YOU