4 th QUARTER PERFORMANCE REPORT DIRECTOR-GENERAL: ARTS AND CULTURE DATE: 19/08/2014

2 PRESENTATION OUTLINE 2  Performance Overview  Budget and Expenditure  Explanation of Expenditure per Economic Classification  Review of Programme Performance on Key Indicators

3 PERFORMANCE OVERVIEW 3

4 COMPARISON OF PERFORMANCE IN THE FIRST, SECOND, THIRD AND FOURTH QUARTERS 4

5 PROGRAMME-SPECIFIC PERFORMANCE 5

6 BUDGET AND EXPENDITURE 6

7 SUMMARY TOTAL BUDGET VERSUS EXPENDITURE PER PROGRAMME Programmes Final AppropriationExpenditureVariance% 2013/1431 March(Over)/UnderSpent 2014 R’000 Administration % Performing Arts % National Language Service % Cultural Development % Heritage Promotion % National Archives and Library Services % Grand Total % 7

8 SUMMARY TOTAL BUDGET VERSUS EXPENDITURE PER PROGRAMME 8

9 SUMMARY TOTAL BUDGET VERSUS EXPENDITURE PER ECONOMIC CLASSIFICATION Economic Classification Final AppropriationExpenditureVariance% 2013/14 31 March 2014 (Over)/UnderSpent R’000 Compensation % Goods & Services (includes payments for financial assets) % Provinces & Municipalities Conditional Grant % Dept. Agencies & Accounts (Current) % Dept. Agencies & Accounts (Capital) % Non Profit Institutions % Foreign Government Organisations % Higher Education Institutions % Households % Gifts and donations Buildings & other fixed structures % Machinery & equipment % Intangible assets Grand Total % 9

10 SUMMARY TOTAL BUDGET VERSUS EXPENDITURE PER ECONOMIC CLASSIFICATION 10

11 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION 11

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. An amount of R190,7 million was spent on Compensation of Employees. There was no variance as the amount represent 100% spending of the budget. EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION 12

13 Economic classification Description of the line itemReason for variance Goods and Services (include Payments for Financial Assets) 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. A total amount of R303 million (69%) was spent on goods and services including the payments for financial assets. A total material variance of R137 million was due to the under-expenditure of: (i)R44 million for the installation of flags; (ii)R26 million for Mzansi Golden Economy; (iii)R527 thousand for Community Libraries; (iv)R62 million correction of office accommodation for the institutions which was re-classified from goods and services to transfer payments; and (v)R4 million for other goods and services. EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION (CONT…) 13

14 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 R594,7 million (99,5%) was transferred to Community Libraries based on their business plans. The variance of R6 million is due to the re-classification of Goods and Services (MGE projects) to transfers (emanating from the audit finding). A roll-over has been requested from Treasury for the unspent amount of R3 million in respect of the Eastern Cape Province. EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION (CONT…) 14

15 PROVINCES AND MUNICIPALITIES CONDITIONAL GRANT ON COMMUNITY LIBRARIES Per Province Division of Revenue Act Government Gazette 2013/14 Provincial Roll-overs Total available Actual transferred by National Provincial Actual Payments % Transferred by National % Actual payments of total available R’000 Eastern Cape72,492-10,01982,51172,49279,493100%96.3% Free State62,9181,4831,18565,58664,40159,422100%90.6% Gauteng63,4703,000-66,470 66,420100%99.9% KwaZulu- Natal 63, ,440100%100.5% Limpopo56,528(8,967)10,89658,45747,56144,443100%76.0% Mpumalanga72,521-4,88477,40572,52176,288100%98.6% Northern Cape 75,596-11,09386,68975,59673,644100%85.0% North West64,058-4,57268,63064,05855,300100%80.6% Western Cape 67,0581,484-68, %100.0% Total597,786(3,000)42,649637,435594,786586,992100%92.1% 15

16 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 R1 billion (105%) has been spent on transfer payments to DAC institutions. The reason for over- expenditure is due to the R62 million correction of office accommodation for the Institutions which was re-classified from goods and services to transfer payments. EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION (CONT…) 16

17 Economic Classification Description of the line itemReason for variance Departmental Agencies & Accounts (Capital Works) Gifts and donations This expenditure item relates to maintenance, upgrade and refurbishment of the Departments’ Playhouses, Museums and Libraries as well as the construction of Legacy Projects. The approval of gifts, donations and sponsorship of state money and other movable property in the interest of the state. An expenditure of R325 million (77%) has been incurred for Capital Works projects. A material budget variance of R95 million has been caused by slow spending on capital projects. An expenditure of R154 thousand has been incurred for gifts and donations. EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION (CONT…) 17

18 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 R102 million (93%) has been transferred to Non Profit Institutions. There is a material variance of R8 million and only a roll- over of R4 million has been requested from Treasury for MGE projects. R3 million (80%) has been transferred to education institutions. EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION (CONT…) 18

19 Economic Classification Description of the line itemReason for variance Households Capital Assets (Intangible assets) This expenditure item relates to all the financial assistance projects that the Department fund during the financial year. This budget relates to the purchasing of machinery and equipment, IT equipment as well as acquisition of a building and other fixed structures. An amount of R81 million (98%) has been spent on Households. An expenditure of R12,6 million has been spent on intangible assets. The expenditure shows an over- expenditure. This is due to the correction of the development of IT software which has been re- classified from goods and services to intangible assets and which emanate from the audit finding. EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION (CONT…) 19

20 Economic Classification Description of the line itemReason for variance Capital Assets (Machinery and equipment) Building and other fixed structures 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. This budget relates to the acquisition of a building and other fixed structures. An expenditure of R6,9 million (100%) has been spent on machinery and equipment. An expenditure of R14 million has been spent on building and other fixed structures. The variance is due to the reclassification of Nelson Mandela statue as capital asset instead of a transfer. EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION (CONT…) 20

21 HIGHLIGHTS An expenditure of R2,7 billion (95% ) has been incurred in the 2013/14 financial year; A virement approval was granted by National Treasury for the MGE projects which were re-classified from Goods and services to Non Profit Institutions (NPI’s); A virement approval of R66 million was granted by National Treasury from Capital works projects to Goods and services for the installation of flags in school projects; At year-end a total amount of R159 million has been under-spent. A roll-over amount of R51 million was requested from Treasury: - R4 mil relate to MGE projects; - R3 mil in respect of Conditional Grant for the Eastern Cape; and - R44 mil for the installation of flags in school projects 21

22 EXPLANATION OF PROGRAMME PERFORMANCE ON KEY INDICATORS 22

23 SELECTED INDICATORS PERFORMANCE INDICATOR 2013/14 TARGET (ENE) 4TH QUARTER TARGET PROGRESSVARIANCE/COMMENTS Number of arts practitioners placed in schools 150 Quarterly ReportThe quarterly report for the arts practitioners programme was received. A total of 200 arts practitioners were placed in schools in the current financial year Number of public art programmes supported 9Quarterly Reports received The quarterly reports for the public art programme were received. A total of 8 public arts programmes supported in 2013/14 Number of language practice bursaries awarded per year 280Financial reportsAudited financial statements and reports were received from universities participating in the language bursary programme. A total of 336 bursaries were confirmed awarded in 2013/14 Number of bursaries in heritage studies awarded per year 106 Awarding of new bursaries and renewal of existing bursaries A total of 73 bursaries were awarded in 2013/14 (i.e. 50 new bursaries awarded and 23 existing bursaries renewed) 23

24 PERFORMANCE INDICATOR 2013/14 TARGET (ENE) 4TH QUARTER TARGET PROGRESSVARIANCE/COMMENTS Number of handheld flags distributed per year handheld flags were distributed in the fourth quarter of 2013/14. The increase in the distribution of the handhelds flags was results of other activities such as CHAN, increase a demand for flags A total of hand-held flags were distributed in 2013/14 Number of flags and poles installed at schools per year flags installed in the fourth quarter. 18 service providers were appointed in the 3rd quarter for fast-track the installation of the flags in schools. A total of 2192 flags and poles were installed in 2013/14 24 SELECTED INDICATORS

25 PERFORMANCE INDICATOR 2013/14 TARGET (ENE) 4TH QUARTER TARGET PROGRESSVARIANCE/COMMENTS Number of community libraries upgraded per year libraries were upgraded in the fourth quarter. In total, 55 libraries were upgraded in the 2013/14 financial year Number of new community libraries built per year libraries new libraries were built /completed in the fourth quarter. A total of 16 libraries were built in 2013/14 financial year Number of jobs created through support to arts, culture and heritage events per year 9832N/A A total of jobs were created through cultural events in the 2013/14 financial year 25 SELECTED INDICATORS

26 PERFORMANCE INDICATOR 2013/14 TARGET (ENE) 4TH QUARTER TARGET PROGRESSVARIANCE/COMMENTS Number of touring venture projects supported per year 5 Reports on supported touring projects A report on supported touring projects was received. A total of 20 touring projects were supported through selected performing arts institutions as well as other independent touring productions in 2013/14 financial year Number of cultural events supported per year cultural events were undertaken in the fourth quarter. A total of 39 events were supported national and internationally in 2013/14 Number of heritage (legacy/monuments) projects supported per year 2 OR Tambo Interpretative Centre completed The OR Tambo Interpretative Centre was not completed. None payment of the contractor by the implementing agent resulted in the delays in construction. The contractor has since resumed construction activities. A total of 4 legacy projects completed in 2013/14 26 SELECTED INDICATORS

27 OBJECTIVE: Enhanced governance and accountability PERFORMANCE INDICATOR 2013/14 TARGET (APP) 4 th QUARTER TARGET PROGRESSVARIANCE/COMMENTS Number of training opportunities provided A total of 44 training interventions were rolled out during the 4th quarter Budget limitation resulted into minimal training for the 4th quarter. A total of 545 training interventions were offered in 2013/14. Training budget will be aligned to quarter targets for 2014/15 financial year % of people with disabilities (PwD) 2% As at the 31 March 2014 the department had 1.85% of people with disabilities in its establishment No posts were filled with People With Disabilities during the 4th quarter PwD need to be considered for advertised vacancies that are currently being filled 27 SELECTED INDICATORS

28 OBJECTIVE: Enhanced governance and accountability PERFORMANCE INDICATOR 2013/14 TARGET (APP) 4 th QUARTER TARGET PROGRESSVARIANCE/COMMENTS % spent against approved budget 98% 95% spent against approved budget. The under-expenditure of 3% of the 98% set target is due to the unspent funds for the Conditional grant, Capital Works, MGE projects second tranches and funds allocated for the installation of flags In respect of the committed funds not spent, the Department will request the roll-over approval from Treasury. % Vacancy Rate (relative to approved structure) 10% 8.3% vacancy rateMost of the posts that were advertised since April 2013 were filled in the 3 rd quarter. 28 SELECTED INDICATORS

29 OBJECTIVE: Enhanced governance and accountability PERFORMANCE INDICATOR 2013/14 TARGET (APP) 4 TH QUARTER TARGET PROGRESSVARIANCE/COMMENTS % of capital works budget spent 100% 77% budget was spent Delays in the implementation of DPW managed projects Redirected funds to new projects. A roll over has been requested for some of the funds not transferred by 31 March Number of media liaison initiatives implemented 153Twelve (12) media liaison initiatives were implemented in the fourth quarter. A total of 31 media liaison initiatives were implemented in 2013/14 29 SELECTED INDICATORS

30 OBJECTIVE: To develop, promote and protect all official language through policy formulation and implementation. PERFORMANCE INDICATOR 2013/14 TARGET (APP) 4 TH QUARTER TARGET PROGRESSVARIANCE/COMMENTS Number of terminologies developed per domain 3490 ARTS AND CULTURE INT. PHASE 872 terminologies developed Arts and Culture INT. Phase 2616 terminologies developed in the fourth quarter An additional 1744 terminologies in two more languages were developed, due to the budget reprioritisation that was done in September HSEMS INT. PHASE 2899 terminologies developed HSEMS INT. PHASE 2898 terminologies developed in the fourth quarter 5963LIFE ORIENTATION INT. PHASE 1490 terminologies developed LIFE ORIENTATION INT. PHASE 1490 terminologies developed in the fourth quarter 30 SELECTED INDICATORS

31 OBJECTIVE: To develop, promote and protect all official language through policy formulation and implementation. PERFORMANCE INDICATOR 2013/14 TARGET (APP) 4 th QUARTER TARGETPROGRESSVARIANCE/COMMENTS Number of terminologies developed per domain 3703 MATHS SNR. PHASE 926 terminologies developed as expected MATHS SNR. PHASE 926 terminologies developed in the fourth quarter 3500 ELECTION 700 terminologies developed 700 Multilingual Election terminologies developed in the fourth quarter and booklet published Number of official documents translated into and edited in all official languages documents198 documents translated/edited as per clients' specifications Fewer request for translation of documents were received from the clients 31 SELECTED INDICATORS

32 OBJECTIVE: Develop, preserve, protect and promote SA’s cultural heritage through policies development PERFORMAN CE INDICATOR 2013/14 TARGET (APP) 4th QUARTER TARGET PROGRESSVARIANCE/COMMENTS Number of policies/ legislative instruments developed and/or reviewed to achieve the objective Policy approved by Minister and Cabinet White Paper on Digitisation of Heritage Resources policy approved by Parliament White Paper on Digitisation of Heritage Resources has been developed but has not been approved by Cabinet due to a need to present the policy to the social cluster before presenting it to Cabinet Policy approved by Minister and Cabinet National Living Heritage Policy approved by Minister and Cabinet by 31 March 2014 Cabinet memorandum approved by Minister but it has not been approved by Cabinet as envisaged due to a need to present the policy to social cluster before presenting it to Cabinet 32 SELECTED INDICATORS

33 OBJECTIVE: Archives and record management PERFORMANCE INDICATOR 2013/14 TARGET (APP) 4TH QUARTER TARGET PROGRESSVARIANCE/COMMENTS Number of Oral History Conferences workshops/seminars organised 1Conference evaluation and drafting of a conference report Oral History Association of SA EXCO evaluated the conference on 17 January 2014 and a conference report was drafted. Number of audio- visual formats inventoried Films Inventoried, 1149 Videos Inventoried, 572 Sound recordings Inventoried. Total 1930 Number of Archival outreach programmes presented 41Archival Outreach programme presented 1 Outreach Project was undertaken in KwaZulu Natal from February 2014 and 1 indigenous music exhibition mounted in Johannesburg city library from 16 January -26 February 2014 Number of Library materials purchased by provinces library material were purchased in the fourth quarter 33 SELECTED INDICATORS

34 THANK YOU