NATIONAL ARTS COUNCIL DAC OVERVIEW 15/11/2016 DEPARTMENT OF ARTS AND CULTURE 4/25/2019 NATIONAL ARTS COUNCIL DAC OVERVIEW 15/11/2016

PRESENTATION OUTLINE

MANDATE

PERFORMANCE OVERVIEW AS AT 30 JUNE 2016

THREE YEAR PERFORMANCE OVERVIEW 2013/14 2014/15 2015/16 Achieved 76% 87% 90% Not achieved 24% 13% 10%

THREE YEAR INCOME AND EXPENDITURE TRENDS 2013/14 2014/15 2015/16 R’000 Income 95,650 96,084 98,983 Government Grant 87,554 91,865 96,089 Other Income 8,096 4,219 2,894 Expenditure (103,714) (99,411) (102,567) Deficit (8,064) (3,327) (3,584)

THREE YEAR AUDIT OUTCOMES NHC 2013/14 2014/15 2015/16 Audit Outcome Qualified Clean

STATUS OF GOVERNANCE AT NAC

MANAGEMENT TEAM The National Arts Council team is operating under the guidance of the Chief Executive Officer (CEO). The CEO is assisted by a team of five Managers who report directly to her. The NAC has also appointed a Chief Financial Officer to administer its financial affairs . The National Arts Council comprises of 34 employees.

ACCOUNTING AUTHORITY: BOARD The Minister of Arts and Culture appointed the Board of the National Arts Council for the period 1 September 2015 to 31 August 2019. Subsequent to the appointment of the Board of the National Arts Council, the Department received complaints from the members of the Arts sector pertaining to the process that was followed in appointing the Council.

ACCOUNTING AUTHORITY: BOARD… The concerns of the sector relate to the two steps of the appointment process that were not followed namely: publishing of the names of the nominated candidates to allow the members of the public comment with regards to the names of the potential Board members of the NAC. publishing of the date (s) of the interviews to enable members of the public participate in the appointment process as provided for in the National Arts Council Act, 1997 (Act No. 56 of 1997). Subsequently, the Minister of Arts and Culture dissolved the Board of the National Arts Council on 30 August 2016.

INTERIM ACCOUNTING AUTHORITY To avoid governance vacuum at the National Arts Council, the Minister of Arts and Culture applied section 49(1) of the Public Finance Management Act (PFMA). In terms of section 49(1), if the public entity does not have a controlling body, the CEO is the Accounting Authority for that public entity. Consequently, the CEO of the National Arts Council is the Accounting Authority of the entity until a new Board is appointed.

BOARD APPOINTMENT PROCESS The Department published an advertisement in various national newspapers calling for nominations of candidates to serve on the Board of the National Arts Council. The call for nominations closed on 23 September 2016. The Minister appointed an independent panel comprising of four members to assist him in identifying candidates that are deemed to be suitable to serve on the Board of the National Arts Council. The Panel is expected to conclude its work on 21 November 2016.

BOARD APPOINTMENT PROCESS… The Department is anticipating to finalise the appointment of the Board of the National Arts Council before the end of November 2016. Appointment letters to successful candidates are expected to be sent on 1 December 2016. The induction of the newly appointed Board of the National Arts Council is scheduled to take place on 19 and 20 January 2016.

SELECTED GOVERNANCE STRUCTURES AND MEETINGS HELD NHC 2014/15 2015/16 2016/17 Number of Council members 17 18 Number of Council meetings 6 1 Number of Council committee meetings 4 8 5 Attendance rate of Council meetings 90% 80% 95% Number of Audit Committee meetings Number of Management meetings 3 Number of Staff meetings 7 2

LEGISLATIVE CONSTRAINTS National Arts Council Act provides for a huge number of Board Members and the Board subcommittees. This is threatening the ability of the National Arts Council to sustain its governance structures. The Act states that the grant received from the Department of Arts and Culture must be divided into the ratio of 75:25 for both disbursements and administration respectively. The above provision implies that more money is available for disbursements and very limited funding is provided for the day to day operations of the National Arts Council.

DEPARTMENT OF ARTS AND CULTURE 4/25/2019 THANK YOU