Audit outcomes of Department of Arts and Culture Portfolio Financial year ended 31 March 2012 October 2012

Reputation promise/mission The Auditor-General of South Africa has a constitutional mandate and, as the Supreme Audit Institution (SAI) of South Africa, it exists to strengthen our country’s democracy by enabling oversight, accountability and governance in the public sector through auditing, thereby building public confidence.

Independent assurance Interaction/ commitments Combined Assurance on risk management in the Public Sector Management assurance First level of assurance Oversight assurance Second level of assurance Independent assurance Third level of assurance Senior manage-ment Accounting Officer / Authority Executive Authority Legal & Risk Committee Audit Committee Oversight Internal Audit Coordinating Institutions External audit Required Assurance Levels Extensive Extensive Moderate Moderate Moderate Limited Extensive Limited Extensive Actual Assurance Levels Controls – Financial & performance Controls – leadership Controls – leadership & interactions/ commitment Not assessed Controls Interactions/ commitments Controls Interaction/ commitments Meets required level of assurance Significantly lower than required level of assurance Provides some level of the required level of assurance

Three-year audit outcomes – Department including Public Entities

Movement in audit outcomes from 2010-11 – All auditees (department and public entities (27)) Audit opinion Improvement Unchanged Regressed Financially unqualified with no findings   Financially unqualified with findings Qualified Disclaimer/ Adverse Total 4 17 6 Market Theatre Iziko 5 Afrikaans Taal Museum 12 National Museum William Humphrey National Arts Council SAST Pansalb Packofs SAHRA

Status of focus areas SCM contravention   SCM contravention Poor quality service delivery reporting Poor human resource management Material errors and omissions in AFS IT exposures With findings 14 8 5 11 With no findings 13 19 22 16 Total auditees 27

Drivers of internal control

Material misstatements in submitted financial statements and corrections made

Predetermined objectives (PDO) findings

% Targets achieved AuditeeID Auditee Departments 1 Arts and Culture   Departments 1 Arts and Culture 68% Public entiies 2 Artscape 80% 3 Die Afrikaanse Taalmuseum 4 Ditsong: Museums of South Africa 76% 5 Freedom Park Trust 6 Iziko Museums of Cape Town 7 KwaZulu-Natal Museum 91% 8 KwaZulu-Natal Performing Arts Company 96% 9 Luthuli Museum 10 Market Theatre Foundation 11 Msunduzi/Voortrekker Museum 95% 12 National Arts Council of South Africa 13 National Film and Video Foundation of South Africa 78% 14 National Heritage Council of South Africa (NHC) 57% 15 National Library of South Africa (Pretoria/Cape Town) 75% 16 National Museum 17 Nelson Mandela National Museum (Umtata) 18 Pan South African Language Board Limitation 19 Performing Arts Centre of the Free State 43% 20 Robben Island Museum, Cape Town 62% 21 South Africa Library for the Blind (Grahamstown) 22 South Africa Heritage Resources Agency 38% 23 The South African State Theatre 44% 24 National English Literary Museum (Grahamstown) 25 War Museum of the Boer Republics 26 William Humphreys Art Gallery 27 Windybrow Theatre

Findings on compliance with laws and regulations

Unauthorised, irregular as well as fruitless and wasteful expenditure   Irregular expenditure Fruitless & wasteful expenditure Auditee Current year Total incurred Total Identified during audit Identifed by auditee Department Arts and Culture 8,845,000.00 1,299,000.00 Public entities Artscape 478,327.00 1,745,838.00 2,224,165.00 Die Afrikaanse Taalmuseum 4,454.00 Ditsong: Museums of South Africa Freedom Park Trust 94,236.00 281,807.00 Iziko Museums of Cape Town 498,653.00 5,986.00 Iziko Museums of Cape Town (other) 22,469.00 KwaZulu-Natal Museum KwaZulu-Natal Performing Arts Company Luthuli Museum 173,000.00 Market Theatre Foundation 210,421.00 Msunduzi/Voortrekker Museum National Arts Council of South Africa 4,218,889.00 National Film and Video Foundation of South Africa 7,626,601.00 National Heritage Council of South Africa (NHC) 104,000.00 2,000.00 National Library of South Africa (Pretoria/Cape Town) National Museum 2,860.00 Nelson Mandela National Museum (Umtata) 2,741,537.00 Pan South African Language Board 5,199,302.00 25,022.00 Performing Arts Centre of the Free State 5,986,517.00 777,417.00 6,763,934.00 1,293,026.00 Robben Island Museum, Cape Town 119,472.00 400,817.00 520,289.00 South Africa Library for the Blind (Grahamstown) 3,000.00 South Africa Heritage Resources Agency 14,649,990.00 903,000.00 15,552,990.00 29,855.00 13,000.00 42,855.00 The South African State Theatre 1,205,620.00 55,901.00 67,285.00 123,186.00 National English Literary Museum (Grahamstown) 9,523.00 War Museum of the Boer Republics William Humphreys Art Gallery 40,998.00 Windybrow Theatre 19,210,087.00 177,517.00 19,387,604.00 2,722,413.00 70,498,200.00 4,934,368.00 75,432,568.00 4,132,191.00 1,680,081.00 5,812,272.00

Root Causes