DEPARTMENT OF ARTS AND CULTURE 5/20/2019 PACOFS OVERVIEW DIRECTOR-GENERAL: ARTS AND CULTURE DATE: 05/10/2017

OUTLINE OF THE PRESENTATION Alignment with DAC Ministers 10 point plan Performance Review Governance Status Income and Expenditure Trends Three year statement of Financial Statement Analysis of Cash and Cash Equivalents Audit Outcome Challenges and Interventions

ALIGNMENT WITH DAC DAC outcome oriented goal DAC Strategic objective Entity strategic objectives and how it links to DAC objective Key outputs/deliverables per objective for 2016/17 Goal 1: A transformed, coherent and development-focused Sector – driving greater policy and planning coherence in the Sector towards the achievement of sectorial development outcomes. To drive integrated and joint outcomes– based planning, monitoring and evaluation across Sector To identify, develop and implement strategies to contribute to the New Growth Path Ensure that PACOFS uses arts and culture as a medium to stimulate job creation and growth To facilitate an enabling and coherent policy, legislative and regulatory environment for the ACH Sector Goal 2: Nation building through effective social cohesion programme implementation – leading nation building and societal transformation through effective social cohesion programmes and a focus on multilingualism To intensify the contribution to and co-ordination of Outcome 14 towards transforming of SA into a multilingual, non-racial, prosperous and non-sexist society To identify, develop and promote new art expressions to progressively advance the cultural well-being of all South Africans through developing, educating, promoting and presenting Arts in a functional Theatre environment To create platforms for artistic expression in music, dance, theatre, poetry, opera and comedy To create platforms for local artists to perform and become known To intensify support to Programmes that contribute to social cohesion and nation building To Promote PACOFS and Its internal and external productions to the public through effective marketing and communications campaigns

ALIGNMENT WITH DAC DAC outcome oriented goal DAC Strategic objective Entity strategic objectives and how it links to DAC objective Key outputs/deliverables per objective for 2016/17 Goal 2: Nation building through effective social cohesion programme implementation – leading nation building and societal transformation through effective social cohesion programmes and a focus on multilingualism To promote national symbols and constitutional values in schools through provision of national symbols toolkits. To identify, develop and promote new art expressions to progressively advance the cultural well-being of all South Africans through developing, educating, promoting and presenting Arts in a functional Theatre environment To Promote PACOFS and Its internal and external productions to the public through effective marketing and communications campaigns To promote use official languages, promote a culture of reading and writing across society, and promote respect for oral knowledge and histories

ALIGNMENT WITH DAC DAC outcome oriented goal DAC Strategic objective Entity strategic objectives and how it links to DAC objective Key outputs/deliverables per objective for 2016/17 Goal 3: A productive, diverse and inclusive ACH Sector – protecting, preserving, promoting and developing arts, culture and heritage, and advancing the socio-economic inclusivity and contribution of the Sector To promote and develop Cultural and Creative Industries Creating an environment where the arts could gain exposure to existing genres, being creative in developing new creative ideas and promoting a holistic experience to the sector Ensure that PACOFS uses arts and culture as a medium to stimulate job creation and growth To develop, promote and maintain multilingual infrastructure and technology that promote access to and increase participation in ACH at local, continental, regional and international level. Opening markets and access and maintaining a positive image and good relations arts, culture, heritage and language locally, continentally, regionally and internationally. To ensure development and maintenance of ACH infrastructure that can support local, regional, national and international ACH offerings as well as increase participation in, and access to ACH

ALIGNMENT WITH DAC DAC outcome oriented goal DAC Strategic objective Entity strategic objectives and how it links to DAC objective Key outputs/deliverables per objective for 2016/17 Goal 4: Sound governance, modernised systems and processes, and a sustainable ACH Sector – sound governance and the modernising of the ACH Sector to ensure the effective utilisation and leveraging of ACH resources for the benefit of all South Africans. To ensure compliance and sound governance To provide and maintain high quality support services to the Council and the department pertaining to sound financial management, human resource management, information technology, cleaning, transport and security administration. 1. To promote an environment of efficient and effective governance and reporting 2. To ensure sound financial management of all PACOFS revenue sources and safeguard the assets of the Project 3. To maintain a culture and practice of compliance with legislation and policies 4. To contribute to the achievement and development of PACOFS as a high performing organisation 5. Ensure a secure and reliable information technology environment 6. Ensure the effective identification and mitigation of risks across all functions To drive sound financial management and controls across Sector To implement sound governance to enable delivery of the DAC mandate To strengthen and modernise records management and archives Management systems

ALIGNMENT WITH DAC DAC outcome oriented goal DAC Strategic objective Entity strategic objectives and how it links to DAC objective Key outputs/deliverables per objective for 2016/17 Goal 5: A professional and capacitated ACH Sector – building the skills and capacity of the Sector to ensure its ongoing development and responsiveness. To build human resource capability and promote culture of high performance To identify, develop and train specific target groups that can be deployed to improve the overall skill levels and increase the interest of people in the arts, resulting in an increased audience 1. To promote, educate and develop young artists by educating audience & young artists in way of presentation outside and inside PACOFS 2. To develop a love and interest for, and sound understanding of Arts and Culture in schools and rural communities 3. To develop technical skills for both PACOFs and non PACOFs employees to generally improve technical skills levels To increase and sustain number of ACH practitioners and pool of human resource capacity required by Sector

MINISTERS 10 KEY POINTS MINISTER 10 POINT PLAN Strategic Outcome (What we wish to achieve) Strategic Objectives PACOFS ALIGNMENT Nation Building and Social Cohesion Improve social interaction To create platforms for artistic expression in music, dance, theatre, poetry, opera and comedy To create platforms for local artists to perform and become known To Promote PACOFS and Its internal and external productions to the public through effective marketing and communications campaigns To identify, develop and promote new art expressions to progressively advance the cultural well-being of all South Africans through developing, educating, promoting and presenting Arts in a functional Theatre environment 2. Focus on Africa  n/a n/a 3. Liberation Heritage Route Create a legacy of information To ensure that PACOFS complies and excels with the Heritage requirements on digitization and retaining of information on resources  To identify information that should be retained and implement the national guidelines on the digitization as heritage resources 4. Promotion of languages

MINISTERS 10 POINT PLAN MINISTER 10 POINT PLAN Strategic Outcome (What we wish to achieve) Strategic Objectives PACOFS ALIGNMENT 5. Arts and Cultural Development (Mzansi Golden Economy) Stimulate local economy Ensure that PACOFS uses arts and culture as a medium to stimulate job creation and growth Implement that vision of the Mzansi Golden Economy through giving expression to its programs to create an enabling and vibrant creative arts environment To identify, develop and implement strategies to contribute to the New Growth Path 6. Promote Community Arts Improve Skills level To promote, educate and develop young artists by educating audience & young artists in way of presentation outside and inside PACOFS To develop a love and interest for, and sound understanding of Arts and Culture in schools and rural communities To develop technical skills for both PACOFs and non PACOFs employees to generally improve technical skills levels To identify, develop and train specific target groups that can be deployed to improve the overall skill levels and increase the interest of people in the arts, resulting in an increased audience 7. Libraries  n/a n/a

MINISTERS 10 KEY POINTS MINISTER 10 POINT PLAN Strategic Outcome (What we wish to achieve) Strategic Objectives PACOFS ALIGNMENT 8. Arts Education Improve Skills level To promote, educate and develop young artists by educating audience & young artists in way of presentation outside and inside PACOFS To develop a love and interest for, and sound understanding of Arts and Culture in schools and rural communities To develop technical skills for both PACOFs and non PACOFs employees to generally improve technical skills levels. To identify, develop and train specific target groups that can be deployed to improve the overall skill levels and increase the interest of people in the arts, resulting in an increased audience 9. Skills audit To develop technical skills for both PACOFs and non PACOFs employees to generally improve technical skills levels

MINISTERS 10 KEY POINTS MINISTER 10 POINT PLAN Strategic Outcome (What we wish to achieve) Strategic Objectives PACOFS ALIGNMENT 10. Reporting and Compliance Create a financially viable and efficient organisation To promote an environment of efficient and effective governance and reporting To ensure sound financial management of all PACOFS revenue sources and safeguard the assets of the Project To maintain a culture and practice of compliance with legislation and policies To contribute to the achievement and development of PACOFS as a high performing organization Ensure a secure and reliable information technology environment Ensure the effective identification and mitigation of risks across all functions   To provide and maintain high quality support services to the Council and the department pertaining to sound financial management, human resource management, information technology, cleaning, transport and security administration.

Performance Overview 2016/17

Performance Overview 2014/15 2015/16 2016/17 Achieved 52% 39% 40% Not achieved 48% 61% 60%

GOVERNANCE PACOFS 2014/15 2015/16 2016/17 Number of Council members 7 8 Number of Council meetings 2 6 Number of Council committee meetings 4 Attendance rate of Council meetings 75% 85% 80% Number of Audit Committee meetings 1 Number of Management meetings 18 Number of Staff meetings 11 10

INCOME AND EXPENDITURE TRENDS 2014/15 2015/16 2016/17 R’000 Income 41 798 44 476 48 974 Government Grant 38 825 40 148 44 646 Own Income 2 973 4 328 Expenditure (44 610) (47 123) (46 345) Surplus/Deficit (2 812) (1 635) 2 629

THREE YEAR STATEMENT OF FINANCIAL POSITION ITEM 2014/15 2015/16 2016/17 R’000 Current Assets 18 652 56 282 22 100 Non-current Assets 66 742 62 805 63 817 Total Assets 85 394 119 087 85 917 Current liabilities 63 351 50 427 19 136 Non-current liabilities 8 727 54 870 55 671 Total liabilities 72 078 105 297 74 807 Net Asset Value (NAV) 13 316 13 790 11 110

ANALYSIS OF CASH AND CASH EQUIVALENTS ITEM 2014/15 2015/16 2016/17 R’000 Cash and Cash equivalents 16 984 18 578 53 364 Add: Trade and other receivables 278 1 792 1 158 Less: Current liabilities (46 858) (9 348) (10 190) Net Working Capital/Surplus Funds (29 596) 9 230 44 332

AUDIT OUTCOME Unqualified Qualified *Adverse 2014/15 2015/16 2016/17 *The adverse opinion is due to Property, Plant and Equipment not recognized in accordance to GRAP standard; no appropriate audit evidence for repairs and maintenance and capital works still in progress and not recognized in accordance to GRAP standards. In addition, no appropriate audit evidence for general expenses.

CHALLENGES & INTERVENTIONS INTERVENTIONS BY DAC Leadership vacuum for almost 3 years contributed to the instability at PACOFS. The recent resignation of the CEO is being attended to. There is currently an acting CEO at the entity. 17

CHALLENGES & INTERVENTIONS INTERVENTIONS BY DAC Labour Unions and Management are always at loggerheads. Labour/Disciplinary Cases that take longer to conclude and have financial implications (possible litigations) Oversight visits by the DAC are utilised to attend to the issues of poor relations in the organisations. A full forensic investigation into the capital expenditure of PACOFS has being conducted by the National Treasury. A meeting was held by National Treasury with the DAC Infrastructure Development Unit and the Chairperson of the Council. A separate presentation with full findings and recommendations will be presented. 18

DEPARTMENT OF ARTS AND CULTURE 5/20/2019 THANK YOU