MARKET THEATRE FOUNDATION DEPARTMENT OF ARTS AND CULTURE 4/8/2019 MARKET THEATRE FOUNDATION ACTING DIRECTOR-GENERAL: ARTS AND CULTURE DATE: 13/10/2016

PRESENTATION OUTLINE Background Performance Overview Income and Expenditure Audit Outcome Audit Findings Governance 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 Infrastructural needs.

PERFORMANCE OVERVIEW

THREE YEAR PERFORMANCE OVERVIEW PROGRESS 2013/14 2014/15 2015/16 2016/17 (as at 30 June 2016) Achieved 75% 80% 68% 50% Not achieved 25% 20% 32%

INCOME AND EXPENDITURE TRENDS ITEM 2013/14 2014/15 2015/16 2016/17 (As at 30 June 2016) R’000 Income 62,681 85,521 95,895 13,623 Government Grant 43,185 69,694 73,422 10,604 Own Income 19,496 15,827 22,473 2,176 Expenditure (47,274) (46,362) (54,252) (8,511) Surplus 15,407 39,159 41 643 5,112

AUDIT OUTCOME MTF 2012/13 2013/14 2014/15 2015/16 Audit Opinion Unqualified with findings

SELECTED AUDIT FINDINGS Emphasis of matter in respect of the following: Irregular Expenditure incurred by the Market Theatre Foundation. Market Theatre Foundation did not maintain regular, accurate and complete performance reports that are supported by reliable verification sources.

GOVERNANCE GOVERANCE STRUCTURES Council The Council of the Market Theatre Foundation is fully constituted as at 13 October 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 7 Number of Council meetings 4 6 1 Number of Council committee meetings Attendance rate of Council meetings 81% 73% 84% 100% Number of Audit Committee meetings Number of Management meetings 10 3 Number of Staff meetings

WINDYBROW THEATRE The Windybrow Theatre is a schedule 3A public entity. The entity receive institutional transfers from the Department to finance its operations and address its Infrastructural requirements. The Windybrow Theatre was consolidated into the Market Theatre Foundation on 1 April 2016. Council and Management of the Market Theatre were appointed as the acting Accounting Authority and Executive Management of the Windybrow Theatre, respectively. Operations at the Windybrow were suspended in March 2014. Staff of the Windybrow Theatre is currently operating from the premises of the Market Theatre Foundation.

INCOME AND EXPENDITURE TRENDS ITEM 2013/14 2014/15 2015/16 R’000 Income 16,678 11,580 17,772 Government Grant 15,851 11,543 17,415 Own Income 827 127 356 Expenditure (17,949) (8,870) (15,067) Surplus/Deficit (1,271) 2 710 2 705

AUDIT OUTCOME The Windybrow Theatre received the unqualified audit opinion in 2015/16. An improvement from the qualified opinions received by the entity since 2005. Financial statements not prepared in accordance with the prescribed financial reporting framework (Section 55 of PFMA). The entity received audit findings due to lack of Internal Audit function. Misstatements of financial statements (Contingent liabilities, Trade and other payables and receivables).

Unqualified with findings AUDIT FINDINGS Windybrow 2013/14 2014/15 2015/16 Audit Opinion Qualified Unqualified with findings

DEPARTMENT OF ARTS AND CULTURE 4/8/2019 THANK YOU