SECOND QUARTER PERFORMANCE REPORT ACTING DIRECTOR-GENERAL: ARTS AND CULTURE DATE: 24 FEBRUARY 2015

2 PRESENTATION OUTLINE 2  Performance Overview  Budget and Expenditure  Explanation of Expenditure per Economic Classification.  Explanation of the Programme Performance on Key Indicator

3 3 PERFORMANCE OVERVIEW

4 BRANCH-SPECIFIC PERFORMANCE 4

5 BUDGET AND EXPENDITURE 5

6 6 SUMMARY TOTAL BUDGET VERSUS EXPENDITURE PER PROGRAMME Programmes Main AppropriationExpenditureTotal% 2014/15 30 September 2014 AvailableSpent R’000 Administration228,266131,56396,70358% Institutional Governance99,80843,76656,04244% Arts & Culture Promotion & Development1,032,876393,323639,55338% Heritage Promotion & Preservation2,163,798982,6731,181,12545% Total3,524,7481,551,3251,973,42344%

7 SUMMARY TOTAL BUDGET VERSUS EXPENDITURE PER PROGRAMME 7

8 8 SUMMARY TOTAL BUDGET VERSUS EXPENDITURE PER ECONOMIC CLASSIFICATION Economic Classification Main Appropriation ExpenditureTotal% 2014/15 30 September 2014 AvailableSpent R’000 Compensation209,910103,690106,22049% Goods & Services (include Payment for Financial Assets and Interest paid on Government Pension Funds) 386,288212,947173,34155% Provinces & Municipalities1,032,810521,960510,85051% Dept Agencies & Accounts (Current)1,111,010577,080533,93052% Dept Agencies & Accounts (Capital Works)540,08344,638495,4458% Non Profit Org190,38563,232127,15333% Foreign Government Organ3,1892,0271,16264% Households28,40518,4719,93465% Higher Education Institutions12,870- 0% Public Corporations2,400- 0% Capital Assets (Include software, intangible asset & DM’s motor vehicle) 7,3987, % Grand Total %

9 9 SUMMARY TOTAL BUDGET VERSUS EXPENDITURE PER ECONOMIC CLASSIFICATION

10 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION 10

11 Economic classification Description of the line itemReason for variance Compensation of Employees The line item includes remuneration in cash, social contributions by the employer, basic wages and salaries, overtime, remuneration of nightshift, cost of living allowances, house allowances, bonuses, pension, medical aid etc. An amount of R104 million (49%) has been incurred as at 30 September Appointments in the Ministry have now been finalized. The Department is awaiting claims from the Department of Water Affairs in respect of staff in the Deputy Minister’s Office (Salaries paid from date of assumption of duty to end of September 2014). 11 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION

12 Economic classification Description of the line itemReason for variance Compensation of Employees The line item includes remuneration in cash, social contributions by the employer, basic wages and salaries, overtime, remuneration of nightshift, cost of living allowances, house allowances, bonuses, pension, medical aid etc. A total of 9 vacancies are in various stages of being filled (Includes 2 x DDG’s, 2 x CD’s, 3 Directors, 1 DD and 1 ASD). The total expenditure per annum for these positions will be R7,9 million. The implications for the current financial year will be R2,6 million (assuming that the positions will be filled by December EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION

13 Economic classification Description of the line itemReason for variance Compensation of Employees The line item includes remuneration in cash, social contributions by the employer, basic wages and salaries, overtime, remuneration of nightshift, cost of living allowances, house allowances, bonuses, pension, medical aid etc. Considering the above-mentioned scenario, the Department need to inform National Treasury. A saving has to be identified to request a virement approval in order to curb the over spending of the budget. 13 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION

14 Economic classification Description of the line itemReason for variance Goods and Services (Include Payment for financial assets and Interest paid on Government Pension Fund) The item includes payments for all goods and services to be used by a government unit i.e. goods or services of a current nature, excluding purchases of capital assets. An amount of R213 million (55%) has been spent as at 30 September The over spending is due to the project of Flags in every school. Treasury has granted an approval of R29 million during the Adjusted Estimates of National Expenditure (AENE) process as an additional budget for the installation of Flags. 14 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION (CONT…)

15 Economic Classification Description of the line itemReason for variance Provinces and Municipalities (Conditional Grant on Community Libraries) The expenditure relates to the transfers for the Conditional grant on Community Libraries and funds are transferred to various Provinces on a quarterly basis. An amount of R522 million (51%) has been transferred as at 30 September The transfers to Provinces were based on the approved business plans. The actual spending per Provinces is as follows: 15 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION (CONT…)

16 SUMMARY TOTAL BUDGET VERSUS EXPENDITURE PER PROVINCE Province Division of Revenue Act, 2014 (Act No.10 of 2014) Received by Province: Year to date Provincial actual payments % Transferred of National allocation % Actual payments of total available R’000 Eastern Cape 109,418 53,500 34, % 31.3% Free State 119,013 58,037 32, % 27.3% Gauteng 125,608 82,456 42, % 34.1% KwaZulu-Natal 122,754 59,991 40, % 33.0% Limpopo 81,010 48,862 18, % 23.1% Mpumalanga 114,781 53,000 37, % 32.8% Northern Cape 118,396 54,200 39, % 33.3% North West 98,883 49,544 28, % 28.9% Western Cape 126,347 62,167 60, % 47.9% Total 1,016, , , % 33.0%

17 Economic Classification Description of the line itemReason for variance Departmental Agencies & Accounts (Current Transfers) This expenditure item relates to subsidies to the Departments’ Public Entities. The Performing Arts Institutions transfers are processed quarterly, Libraries and Heritage Institutions on a monthly basis. An amount of R577 million (52%) has been spent as at 30 September The high spending percentage is due to Performing Arts Institutions which are paid on a quarterly basis. NHC spending is high and based on their projections. The transfer is processed on a monthly basis. 17 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION (CONT…)

18 Economic Classification Description of the line itemReason for variance Departmental Agencies & Accounts (Capital Works) This expenditure item relates to maintenance, upgrade and refurbishment of the Departments’ Playhouses, Museums and Libraries as well as the construction of Legacy Projects. An amount of R45 million (8%) has been spent as at 30 September There is under spending that is realized under this economic classification. Corrective measures needs to be taken urgently by the line functions in order to improve the spending. 18 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION (CONT…)

19 Economic Classification Description of the line itemReason for variance Non Profit Institutions (NPI) Higher Education Institutions This expenditure relates to subsidies to BASA, Blind SA, Engelenburg Arts Collection and MGE projects. Expenditure relates to transfer payments to tertiary institutions in a form of a bursary. An amount of R63 (33%) has been spent as at 30 September The MGE expenditure will accelerate as Treasury has granted approval to shift funds from goods and services to this economic classification. No funds has been transferred to Education Institutions as at 30 September An amount of R12,4 million has been re- classified from Higher Education Institutions to Households during the AENE process, as the beneficiaries of the bursary scheme for language and heritage sectors are the students. 19 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION (CONT…)

20 Economic Classification Description of the line itemReason for variance HouseholdsThis expenditure item relates to all the financial assistance projects that the Department fund during the financial year. An amount of R18 million (65%) has been spent as at 30 September The high spending is due to projects which were planned to take place during the 1 st and 2 nd quarter of the 2014/15 financial year. 20 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION (CONT…)

21 Economic Classification Description of the line itemReason for variance Capital Assets (Include software, tangible assets and DM’s motor vehicle) This budget relates to the purchasing of machinery and equipment including the IT equipment as well as acquisition of a building and other fixed structures. An amount of R7 million (98%) has been spent as at 30 September The high spending is due to the procurement of software licenses, the production servers for Head Office and National Archives and the purchasing of motor vehicles. Due to budgetary constraints under this economic classification, new purchasing requests will only be addressed in the 2015/16 financial year. 21 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION (CONT…)

22 REMARKS The Department has spent R1,5 billion (44%) as at 30 September 2014; The MGE virement has been approved by Treasury to shift funds from goods and services to transfer payments (i.e. NPI’s, Provincial and Local Government, Departmental Agencies & Accounts, Higher Education Institutions and Households); The slow spending under Capital Works budget needs an urgent intervention from management in order to prevent under spending of the budget at year- end; The Adjusted Estimates of National Expenditure (AENE) process has been finalized and the Medium-Term Budget Policy Statement (MTBPS) has been tabled by Parliament on the 22 nd of October An update of adjustments from the Main Appropriation to the Adjusted Estimates of National Expenditure (AENE) will be done when reporting October expenditure. 22

23 EXPLANATION OF PROGRAMME PERFORMANCE ON KEY INDICATORS 23

24 PERFORMANCE INDICATOR 2 ND QUARTER TARGET PROGRESS DESCRIPTION % of people with disabilities 2%50% women representation at SMS level and 2% PwD % spent against approved budget 45% spending of the budget A total amount of R1,551 billion (44%) was spent vs a budget of R3,525 billion % of BBBEE procurement 70% of contracts awarded on BBBEE Number of events managed to advance the DAC strategic goals or agreed Marketing objectives (30) 10 events managed to advance the DAC Strategic goals or agreed Marketing objectives 10 events Managed during the reporting period i.e. Media Launch to SA/ India festival 24 SELECTED INDICATORS

25 PERFORMANCE INDICATOR 2 ND QUARTER TARGETPROGRESS DESCRIPTION Percentage of Public Entities with fully constituted and inducted councils (100%) 100% of councils fully constituted and inducted 62% of councils are fully constituted as at 30 September 2014 Number of Institutional visits conducted and reports prepared (26 visits and reports) 7 Seven visits were conducted during the second quarter namely PACOFS, Windybrow, Luthuli Museum, Msunduzi Museum, National Library, Ditsong Museum and State Theatre Number of Community conversations held (18) 7 Community conversations 10 Community Conversations held and a launch of the program Number of Public Platforms for Social Cohesion Advocates 3 public platforms for Social Cohesion Advocates Five platforms for Social Cohesion advocates were hosted. Mandela Day, Woman's Day, 2 Advocates during the launch of the Community Conversations, During the Youth Dialogue in September in Mafikeng 25 SELECTED INDICATORS

26 PERFORMANCE INDICATOR2 ND QUARTER TARGET PROGRESS DESCRIPTION Number of Cultural Seasons implemented UK and China SeasonsChina Seasons: Mandela Month in Beijing China, 4-19 July. DAC sent the Soil to participate in the event. International. Book Fair, August, DAC sent SA Writers to participate at the event. Nanning International Festival 14 to 22 September UK Seasons: International Nelson Mandela day celebrations on the July 2014, participation at the Common Wealth Games: August. Edinburgh International Festival: 8-31 August 2014 Number of development programmes for Children, Women, Persons with Disabilities and Senior Citizens implemented (5) 1 development programmes held Workshop on Women in the Arts hosted on the 29th September 2014 in Mayibuye Community Art Centre in Kimberley Northern Cape 26 SELECTED INDICATORS

27 PERFORMANCE INDICATOR 2ND QUARTER TARGETPROGRESS DESCRIPTION or VARIANCE/ COMMENTS Number of artists placed in schools per year MOU signed Approval for projects granted and MOUs drafted Number of cultural events supported per year 08 Cultural Events implemented 08 Cultural Events implemented i.e Moretele Tribute concert 27 SELECTED INDICATORS

28 PERFORMANCE INDICATOR2 ND QUARTER TARGETPROGRESS DESCRIPTION Art bank: 1st phase of Art Bank implemented as per approved business plan Art bank: securing of space for the artworks Through a pilot project and research process Oliewenhuis Art Museum in Bloemfontein have been identified as an entity to host the Art Bank NACISA launchedCabinet Memo submitted Curriculum development tender awarded Funding activities initiated ToR' s for curriculum development were done and presented to BSC, it was advised that they need to be reviewed. Subsequently incoming Minister also advised NaCISA Concept to be reviewed. The Cabinet Memo was not developed. Funding activities in terms of budget allocations to the various activities of the project has been approved Number of sector organisations and skills training projects supported 4 projects implemented4 projects implemented: MOSHITO in September, AIRCO project implemented, Script - to - Screen project implemented, establishment of CIFFSA supported 28 SELECTED INDICATORS

29 PERFORMANCE INDICATOR 2 ND QUARTER TARGETPROGRESS DESCRIPTION DAC Language policy developed incorporation of comments Comments have been incorporated to the language policy Number of domains for which terminology will be developed Arts and Culture intermediate phase 873 terminologies developed; Arts and Culture intermediate phase 6984 terminologies developed HSEMS intermediate phase terminologies developed Mathematics senior phase 926 terminologies developed Life Orientation terminologies developed Life Orientation intermediate phase 1491 terminologies developed 29 SELECTED INDICATORS

30 PERFORMANCE INDICATOR 2 ND QUARTER TARGET PROGRESS DESCRIPTION Number of Language Practice Bursaries Monitoring to universities The monitoring visits were done to the Universities Number of Language Practice Bursaries Number of flag poles installed per year flags installed in 2852 schools across all provinces The rate of installation has normalised due to midterm project monitoring and evaluation activities 30 SELECTED INDICATORS

31 PERFORMANCE INDICATOR 2 ND QUARTER TARGETPROGRESS DESCRIPTION 3 Prioritised elements of OR Tambo phase 2 started Appoint the ContractorThe Contractor appointed in May 2014, construction has started Sarah Bartmann Centre of Remembrance- Beginning of construction Appointment of a contractor Lubbe Contractor appointed in April Breaking of the Ground Ceremony held on 02 May Setting up of site and bulk earth works commencement in May % of buildings works complete by June Bram Fisher house purchased Property registrationDAC has sent a letter to Independent Development Trust (IDT) instructing them to register the house under the National Heritage Council. IDT has sent a deed of ownership to NHC to complete for property registration under NHC. 31 SELECTED INDICATORS

32 PERFORMANCE INDICATOR 2 ND QUARTER TARGETPROGRESS DESCRIPTION Number of National Days hosted (7) 3The Nelson Mandela Day was successfully held in Mthatha. The National Women's Day was successfully held at King Zwelithini Stadium in Umlazi, KwaZulu-Natal Province and the National Heritage Day was successfully at James Motlatsi Stadium in Orkney, North-West Province. Number of Outreach projects implemented (6) 22 Outreach projects implemented : Visited rural schools in North West August 2014 and in Eastern cape 1-6 September 2014 Ncome phase 2 RepairedPhase 2 roof repairs completed Repairs Completed 32 SELECTED INDICATORS

33 PERFORMANCE INDICATOR 2 ND QUARTER TARGETPROGRESS DESCRIPTION 3 Prioritised elements of OR Tambo phase 2 started Construction begins (OR Tambo Homestead and Garden of Remembrance) Construction of 2 roomed houses awaits SAHRA approval, stormwater drainage and landscaping work is underway at the homestead work on the family graves, legacy pathways, water features, landscaping and statue work at the memorial has started but is delayed. Sarah Bartmann Centre of Remembrance-Beginning of construction Construction begins ( Sarah Bartman) Construction is at 12% and on track for completion in 2016 Bram Fisher house purchased Appoint the contractor (Bram Fisher) A change in decision - Bram Fischer house will now be registered under National Department of Public Works and not the National Heritage Council. A meeting has been arranged for 02 October 2014 between DAC and NDPW to outline a speedy house transfer processes 33 SELECTED INDICATORS

34 PERFORMANCE INDICATOR 2 ND QUARTER TARGETPROGRESS DESCRIPTION Number of jobs created through heritage projects 1384 job opportunities created 3067 jobs were created Dr Moroka House projectConstruction begins (Dr Moroka House Project-Completed) Dr Moroka house project has been cancelled. A DG submission to this effect with a formal letter to IDT is on route but not yet approved Ingquza Hill Phase 1Construction begins (Ingquza phase 1) Revised budget of R from the initial budget of R has been presented for approval. The project is at 47% complete which is on track according to the work plan Bhambatha StatureProgress ReportA report has been generated to the effect is that the statue installed and awaiting confirmation from Presidency for official opening 34 SELECTED INDICATORS

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