2017/18 NFVF ANNUAL REPORT PRESENTATION TO ARTS & CULTURE PORTFOLIO COMMITTEE

Table of Contents The Enabling Legislation Mandate, Goals, Vision and Mission. Strategic Overview Governance matters Executive Management Financial Position Financial Performance Revenue and Expenditure (performance against budget) Non-financial Performance Audit Outcomes 3

Enabling Legislation National Film and Video Foundation Act 73 of 1997 as amended by the Cultural Laws Amendment Act 36 of 2001. NFVF is a Schedule 3A Public Entity in terms of the PFMA. 4

Mandate Section 3 of the NFVF Act sets out the mandate as follows: To promote and develop the film and video industry To provide and encourage the provision of, opportunities for persons, especially from disadvantaged communities, to get involved in the film and video industry To encourage the development and distribution of local film and video products To support the nurturing and development of and access to the film and video industry To address historical imbalances in the infrastructure and distribution of skills and resources in the film and video industry 5

Vision and Mission Vision: Mission: To be a leader towards a sustainable audio-visual content industry that represents the nation’s aspirations and celebrates our diversity. Mission: To collaborate with all stakeholders to enable the development and promotion of a transformed and thriving South African audio-visual content industry. * Audio-visual = All film (content transmitted through various platforms, e.g. cinema, television, online, and other digital means), television, etc. excluding Music Videos, Reality TV, adult content, etc. 6

Strategic Overview Strategic Outcome-Oriented Goals Increase the number of people trained in the industry, particularly in areas of scarce skills Develop appropriate policy interventions for the South African film industry Increase the number of South African films produced and PDI’s producing them Promote the South African Film Industry locally and internationally Fulfil statutory and governance obligations of the NFVF as set out in relevant legislation 7

Governance Accounting Authority In terms of section 6 of the Act, the NFVF functions under the guidance of a Council, appointed by the Minister of Arts and Culture. The Council bears primary responsibility for discharging the statutory mandate of the NFVF as set out in the Act. The Chief Executive Officer, management and staff exist to support the Council in executing its responsibilities. The role of the Council is to: Carry out its statutory mandate under the Act; Define and ensure compliance with the values and objectives of the NFVF; Establish policies and plans to achieve those objectives; Approve each year’s strategic and annual performance plan, budget and annual financial statements prior to publication. 8

Governance The Audit Committee: Reviewed and discussed the audited annual financial statements of the NFVF that were included in the annual report, with the Auditor-General and the Accounting Officer Reviewed the Auditor-General’s management letter and management’s response Reviewed changes in accounting policies and practices Reviewed significant adjustments resulting from the audit The committee was satisfied that the financial statements comply, in all material respects, with the requirements of the PFMA, 1999, as amended, and South African Statements of Generally Recognised Accounting Practice (GRAP). 9

Head: Production & Development Executive Management Head: Production & Development Head: Policy & Research   Head: Marketing & Communications Head: HR &Centralised Services Chief Financial Officer NFVF Council CEO 10

Annual Financial Statements Statement of Financial Position Assets March 2018 March 2017 R’000 R’000 Non Current Assets 9 198 8 125 Current Assets 70 723 74 961 Total Assets 79 921 83 087 Liabilities Non Current Liabilities 39 943 35 011 Current Liabilities 44 438 46 190 Total Liabilities 84 381 81 201 Net Assets Accumulated surplus (4 460) 1 885 Total Net assets and Liabilities 79 921 83 087 11

Annual Financial Statements Statement of Financial Performance Revenue Actual Budget Variance R'000 R'000 R'000 DAC – annual allocation 129 052 129 052 - Partnerships 15 628 - 15 628 Recoupments 1 261 - 1 261 Other 131 - 131 Investment income 3 641 4 200 (559) Total Revenue 149 713 133 252 16 461 12

Annual Financial Statements Statement of Financial Performance Revenue – Explanation of variances Partnerships – These relate to agreements with other stakeholders for projects and other events. Some of the stakeholders that we partnered with were McCafe, Ster-Kinekor, M Net, SAB, CATA, Caivil Hair and IDC for SAFTAs, SABC and Namibian Film Commission for the Youth Filmmaker Project. NFVF received R4 497 029 from the MICT Seta for the bursary and internship partnership agreement. Recoupments – Funds were received from films that were funded by the NFVF. Some of the films are Khumba, Verskietende Ster, Keeping up with the Kandasamy's and Tsotsi. 13

Annual Financial Statements Statement of Financial Performance Expenditure Actual Budget Variance R'000 R'000 R'000 Training & bursaries 16 966 12 100 (4 866) Development & production 46 316 46 000 (316) of content Research projects 1 854 3 500 1 646 Local & Global Positioning 50 401 32 700 (17 701) Total Expenditure 115 538 94 300 (21 238) 14

Annual Financial Statements Statement of Financial Performance Expenditure – Explanation of variances Grant Expenditure: The variance was sourced from sponsorship and partnership agreements entered into with various stakeholders. R16.9million of revenue received from stakeholders. 15

NFVF Performance Information Training and skills development Planned Target 2017/18 Actual Achievement Deviation from planned target to Actual Achievement 2017/18 Comment on deviations 66 bursaries awarded p.a 128 Bursaries approved by council  62 More than target NFVF MICT Seta partnership provided for additional funding to fund extra bursaries Place 25 interns p.a 120 Interns placed   Over-achieved by recruiting 95 additional interns NFVF MICT Seta partnership provided for additional funding to fund extra interns 3 Training Companies funded p.a    Host Sediba Programme with 60 filmmakers participate 10 students to participate on Mentorship Programme p.a  2 Schools Programmes to held with a target of 500 learners participating p.a 3 Training companies funded 1 Sediba programme hosted and 60 filmmakers participated 12 Students participated in mentorship programmes 2 Schools programmes were held and 621 learners participated n/a Over achieved by 2 student film makers Over achieved by 121 There was a 4 weeks mentorship programme opportunity for two SA female film makers at the NFVF in partnership with Blue Ice Production in Toronto (Canada) Thatohatsi Intermediate School in the Free State Province had more than 250 learners from the targeted grades which were in Grade 10,11 & 12 * 16

NFVF Performance Information Policy & Research Planned Target 2017/18 Actual Achievement Deviation from planned target to Actual Achievement 2017/18 Comment on deviations 4 Research Publications per annum 5 Research publications Over achieved by 1 research publication Over achieved due to a special request from production for a slate project 3 Policy Manuals approved by Council.   0 Policy manuals approved by council Policy manual not approved by council awaiting Organisational Design process to complete 2 Policy Workshop to be conducted 2 Policy workshops were conducted for NFVF staff n/a Produce 4 quarterly policy monitoring reports 4 Policy monitoring reports were produced Contribute 2 policy and legislative submission p.a. 2 Policy and legislative submission with recommendations were submitted Compliance with Contract Management System (CMS) 100% Compliance with contract Management System (CMS) 17

Non-financial Performance Production & Development of Content Planned Target 2017/18 Actual Achievement Deviation from planned target to Actual Achievement 2017/18 Comment on deviations 66 projects funded in development p.a.      38 projects funded in production p.a. Award 1 new Women filmmaker slate 81 Projects Funded In Development 48 Projects Funded In Production 1 Female Filmmaker Slate Funded 15 Projects funded more than target 10 Projects funded more than target  n/a More projects were funded because some applicants requested less than the maximum allocation per project. n/a * 18

NFVF Performance Information Production & Development of Content (cont.…) Planned Target 2016/17 Actual Achievement Deviation from planned target to Actual Achievement 2016/17 Comment on deviations    Award 1 First time / Youth filmmakers slate  1 fiction slate funded    1 animation slate funded 1 documentary slate funded   1 First Time / Youth Filmmakers Slate Awarded 3 Fiction Slates Funded     1 Animation Slate Funded 1 Documentary Slate Funded  n/a 2 More fiction slates funded than target n/a More than 1 slate funded because of the high quality standard of the proposals. Certify 90% of all applications received 100% All applications received met the requirements There were no rejections or withdrawals on any application 3 Co-production Activations 5 Coproduction's Activated Over achieved by 2 co-productions activated Over achieved due Africa focus which included Nigeria and Tunisia 19

NFVF Performance Information Marketing and Distribution Planned Target 2017/2018 Actual Achievement Deviation from planned target to Actual Achievement 2017/2018 Comment on deviations Attend & activate at 7 International Festivals   Activate at 4 Strategic Markets to promote SA content Attended 8 international festivals p.a    Attended and activated 4 strategic markets to promote sa content Attended 1 more international festival than target n/a Berlin International Film Festival 7 grants awarded p.a. to National Festivals 12 Grants awarded to national festivals Funded 5 more grants than target Funded more festivals in previously underserviced regions: e.g. Ekurhuleni Film Festival, Mpumalanga Film Festival, Limpopo Film Festival, Behind The Blazer 12 Festival Activations p.a Implemented 13 festival activations, 2 career expos and 4 national day programmes Activated 1 more national festivals than target Activation included eastern cape film festival, focus on underserviced regions 4 Brand Activations p.a 4 Brand activations executed SA Film and TV Awards The planning, organising & hosting the SAFTAs event that was broadcast on SABC 2 and Mzansi Magic Fund 80 filmmakers p.a to attend Markets & Film Festivals Funded 99 filmmakers to attend markets and film festivals Funded 19 more filmmakers to attend markets and film festivals than target Not all applicants applied for or were granted the R29,000 funding cap & more filmmakers were invited to screen their productions as part of the “Official Programme” * 20

NFVF Performance Information Marketing and Distribution (cont.…) Planned Target 2017/2018 Actual Achievement Deviation from planned target to Actual Achievement 2017/2018 Comment on deviations 4 stakeholder engagement per quarter 4 Quarterly engagements with stakeholders were held per quarter n/a 1 DAC Activation and 2 Public Screenings 1 DAC activation during Africa Month We are Africa Film Festival 3 Public Screenings King Cetshwayo District Municipality Screenings in KZN were added for audience development in a rural area. 4 Communication Campaigns per quarter 4 Communication campaigns implemented per quarter A Digital Platform for SA film industry is implemented & 50 titles uploaded 218 Titles were uploaded Uploaded 168 more titles NFVF over-achieved because the titles that were uploaded are not only feature films but includes 66 fiction titles, 76 documentary titles, 6 banners and 70 images 10 Marketing & Distribution grants awarded 10 Marketing and distribution projects funded Implement 2 awareness programmes and 2 NFVF industry event 7 Awareness and industry events implemented Implemented 3 more awareness and industry events than the target. The Soweto Youth Expo, Tier 3 workshops implemented in areas and groups that the NFVF is trying to increase its footprint in. * 21

NFVF Performance Information Administration and Human Resources Planned Target 2017/2018 Actual Achievement Deviation from planned target to Actual Achievement 2017/2018 Comment on deviations Reporting quarterly, bi-annually and annually to DAC, National Treasury and NFVF Council Quarterly reports submitted to DAC, National Treasury and Council n/a Prepare Monthly management accounts   Monthly management accounts prepared Conduct an annual risk assessment workshop Risk assessment workshop was conducted in Feb 2018 4 internal audits annually 5 Audits completed for the year 1 More audit completed than target * 22

NFVF Performance Information Administration and Human Resources (cont.…) Planned Target 2017/2018 Actual Achievement Deviation from planned target to Actual Achievement 2017/2018 Comment on deviations Implement PMS   PMS fully implemented n/a 6 staff trained 9 Staff trained 3 Additional staff members trained More staff trained due to them requesting courses that were less than what was budgeted for hence more staff could be trained. Compliance with legislation Annual HR policies and procedures workshop Implement approved structure Annual salary increases approved by Council & implemented 23

NFVF Audit Outcomes The NFVF achieved an unqualified opinion with findings for the 2017/18 financial year. The following findings were reported on the audit report: The entity incurred irregular expenditure of R7 107 281 as a result of the overspending of the budget and not following proper tender process. Material misstatements of the current liabilities on the financial statements. A person in the service of the entity whose associate had a business interest in a contract awarded by the entity participated in the process relating to that contract. 24

Contact us on: @nfvfsa www.nfvf.co.za +27 11 483 0880