THIRD 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 Programme Performance

3 3 PERFORMANCE OVERVIEW

4 BRANCH-SPECIFIC PERFORMANCE (3 RD QUARTER) 4

5 BUDGET AND EXPENDITURE 5

6 6 SUMMARY TOTAL BUDGET VERSUS EXPENDITURE PER PROGRAMME Programmes Main Appropriation 2014/15 Virements & shifts Adjusted Appropriation 2014/15 Expenditure 31 December 2014 Total Available % Spent R’000 Administration228,2666,087234,353173,73960,61474% Institutional Governance 99, ,04060,94839,09261% Arts & Culture Promotion & Development 1,032,876-1,3501,031,526610,337421,18959% Heritage Promotion & Preservation 2,163,798-4,9692,158,8291,450,985707,84467% Total3,524,748- 2,296,0091,228,73965%

7 SUMMARY TOTAL BUDGET VERSUS EXPENDITURE PER PROGRAMME 7

8 8 SUMMARY TOTAL BUDGET VERSUS EXPENDITURE PER ECONOMIC CLASSIFICATION Economic ClassificationMain Appropriation 2014/15 Virements & shifts Adjusted Appropriation 2014/15 Expenditure 31 December 2014 Total Available % Spent R’000 Compensation of Employees209, ,42852,48275% Goods & Services (include Financial Assets and Interest paid on Government Pension Funds) 480,355-81,268399,087277,320121,76769% Provinces & Municipalities1,016,21016,6001,032,810806,519226,29178% Dept Agencies & Accounts (Current)1,105,3576,1531,111,510842,105269,40576% Dept Agencies & Accounts (Capital Works) 538,083-45,066493,01742,673450,3449% Non Profit Org121,90183,472205,373132,97672,39765% Foreign Government Organisation3, ,1892, % Households27,65520,35848,01320,89527,11844% Higher Education Institutions12,470-11, % Public Corporations2,4009,23511,6354,3057,33037% Capital Assets (Include software, intangible asset, DM’s motor vehicles & Sculptures) 7,3981,8269,2249, % Grand Total3,524,748- 2,296,0091,228,73965%

9 9 SUMMARY TOTAL BUDGET VERSUS EXPENDITURE PER ECONOMIC CLASSIFICATION

10 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION

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 R157 million (75%) has been incurred as at 31 December Considering the critical positions that still need to be filled, this budget is not sufficient. 11 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION

12 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 R277 million (69%) has been incurred as at 31 December There is an under-expenditure of 6%, in comparison with the guideline of 75%. This expenditure will improve during the 4 th quarter. 12 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION

13 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, including MGE projects. An amount of R807 million (78%) which include other transfers to Provincial and Local Government, has been transferred as at 31 December The transfers to Provinces were based on the approved business plans. The actual spending per Province is as follows: next slide 13 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION

14 Province Division of Revenue Act, 2014 (Act No. 10 of 2014) Received by province: Year to date Provincial actual payments 31 December 2014 % Transferred of national allocation % Actual payments of total available R’000 Eastern Cape109,41883,50055, % 51.0% Free State119,01387,09858, %49.2% Gauteng125,608115,85781, %64.9% KwaZulu-Natal122,75492,29552, %42.5% Limpopo81,01073,05632, %40.3% Mpumalanga114,78190,00056, %49.4% Northern Cape118,39689,98360, %50.8% North West98,88376,90847, %48.2% Western Cape126,34794,61991, %72.8% Total1,016,210803,316537, %52.9% SUMMARY TOTAL BUDGET VERSUS EXPENDITURE PER PROVINCE

15 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 R842 million (76%) has been spent as at 31 December The high spending percentage is due to Performing Arts Institutions which are paid on a quarterly basis. The National Heritage Council (NHC) spending is high and based on their projections. 15 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION

16 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 R43 million (9%) has been spent as at 31 December The transfer to Performing Arts Institutions have been delayed due to the need for a reprioritisation exercise to be conducted in order to make funds available through a virement process for the NFVF Film fund. The transfer to the Heritage Institutions have been reviewed, and the allocation letters notifying institutions will be finalised shortly to enable processing. 16 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION

17 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 R133 (65%) has been spent as at 31 December The MGE expenditure will improve during the 4 th quarter, due to the fact that Attorneys were appointed by the end of November 2014 to assist in vetting the MGE contracts. Finance received a high volume of payments for verification and processing. No transaction was processed as at 31 December 2014 under this economic classification. Contracts have been signed with beneficiaries and payments will be processed during the 4 th quarter. 17 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION

18 Economic Classification Description of the line itemReason for variance Public Corporations Households This expenditure relates to transfer payments to MGE, Cultural Development and Human Language Technologies projects. This expenditure item relates to all the financial assistance projects that the Department fund during the financial year. An amount of R4 million (37%) has been spent as at 31 December An amount of R21 million (44%) has been incurred as at 31 December The expenditure will accelerate in the 4 th quarter. The actual spending is in line with the planned projects. EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION 18

19 Economic Classification Description of the line itemReason for variance Capital Assets (Include intangible assets - software, motor vehicles and sculptures) 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 R9 million (100%) has been spent as at 31 December 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. 19 EXPLANATION OF EXPENDITURE VARIANCE PER ECONOMIC CLASSIFICATION

20 REMARKS The Department has spent R2,3 billion (65%) as at 31 December 2014 instead of 75% as a guideline, this translate to 10% under spending. Some of the contributing factors is a under spending of the Capital Works budget. An urgent intervention from management is required in order to curb the under spending of the budget at year-end. 20

21 EXPLANATION OF PROGRAMME PERFORMANCE ON KEY INDICATORS 21

22 PERFORMANCE INDICATOR 3 rd QUARTER TARGET PROGRESS DESCRIPTION % of people with disabilities 50% women representation at SMS level and 2% PwD 52% Women at SMS and 2.42% PwD % spent against approved budget 70% spending of the budget A total amount of R2.296 billion (65%) was spent versus a budget of R3.525 billion. % of BBBEE procurement 70% of contracts awarded on BBBEE 78.48% (R ) of the total value of contracts awarded to BBBEE compliant service providers Number of events managed to advance the DAC strategic goals or agreed Marketing objectives ( 30) 5 events managed to advance the DAC Strategic goals or agreed Marketing objectives 11 events were managed in the report period 22 SELECTED INDICATORS

23 PERFORMANCE INDICATOR 3 rd QUARTER TARGET PROGRESS DESCRIPTION Percentage of Public Entities with fully constituted and inducted councils (100%) 100% of councils fully constituted and inducted The following councils were appointed but not yet inducted i.e. State Theatre Council, ArtsCape, Playhouse Company, Pacofs, Msunduzi Museum, NELM, Luthuli, Afrikaans Taal, War Museum and William Humphreys Arts Gallery have been finalised. 100% constituted Number of Institutional visits conducted and reports prepared (26 visits and reports) 7 2 Site visits undertaken: PACOFS, Nelson Mandela Museum. Site Visits were deferred to the fourth quarter due to other work commitments including regional workshops on standardisation of key performance indicators Number of Community conversations held (18) 4 Community conversations 14 community conversations were held in Mpumalanga, North West, Northern Cape, Eastern Cape and Gauteng provinces. Number of Public Platforms for Social Cohesion Advocates 3 public platforms for Social Cohesion Advocates 3 public platforms for Social Cohesion Advocates were held during the reporting period. Two in Gauteng and one in KZN Provinces 23 SELECTED INDICATORS

24 PERFORMANCE INDICATOR 3 rd QUARTER TARGET PROGRESS DESCRIPTION Number of Cultural Seasons implemented UK and China Seasons UK Seasons: DAC participated in the Working Group meeting November 2014 to review the progress made to date, and to select projects for the next SA-UK Seasons in DAC participated in the Joint Organising Committee meeting held in Cape Town on 5 December 2014 to approve the programme for the SA-UK Seasons China Seasons: DAC participated in the closing ceremony of SA-China Cultural Season held on 5 December 2014 which coincided with the State Visit to China by President Zuma. " Number of development programmes for Children, Women, Persons with Disabilities and Senior Citizens implemented (5) 2 development programmes held Intergenerational program on Clan Names contributing to a built up programme for Oral History Conference - workshop with school children was held in Pretoria on the 4th and 5th October 2014, and a presentation was done by children at the conference on the 14th and 15th October Workshop on Women in the Arts was hosted in East London, Eastern Cape on the 4th November SELECTED INDICATORS

25 PERFORMANCE INDICATOR 3RD QUARTER TARGET PROGRESS DESCRIPTION Number of artists placed in schools per year Artists recruited Arts practitioners were recruited following Treasury's virement approvals and transfer of payments to the Beneficiaries. Thus far 200 artist have been placed in schools Number of cultural events supported per year 04 Cultural Events implemented 4 flagship cultural events were implemented as follows: Mbokodo Awards, Macufe, Buyelwa eKhaya and Mapungubwe. In addition 8 cultural events supported through the Open Call Number of projects implemented to create a culture of reading and writing Progress report received National Book Week implemented and African Literary Awards report received. The event held on the 1 st – 7 th September 2015 was in form of a road show traveling through several provinces including Gauteng, North West, Free State, Northern Cape and Western Cape, with satellite events in Limpopo and Eastern cape. Number of Language Practice Bursaries Receiving progress reports from universities, study and ratify them Relevant progress reports received from the Universities which indicate that 402 bursaries were awarded. Bursaries have been awarded in the following Universities:  Limpopo University; University of Zululand; University of Johannesburg; University of South Africa; Walter Sisulu University 25 SELECTED INDICATORS

26 PERFORMANCE INDICATOR 3 rd QUARTER TARGET PROGRESS DESCRIPTION Art bank: 1st phase of Art Bank implemented as per approved business plan Art bank: start process of artworks acquisition Process of acquisition of Artwork has started in consultation with the institution (Olievewenhuis Art Museum) in November 2014 NACISA launchedInterim curriculum development report Draft concept for the NaCISA project has been developed and the Terms of reference for the appointment of the Service Provider has been developed Number of Partnership interventions created for integrated and collaborative approach to the growth and development of the arts sector and social cohesion Progress reports received South African Roadies Association (SARA) MOA concluded and 1st Payment transferred. Thuthuka Jewellery Programme, MOSHITO, Script to Screen, CCIFSA progress report received 3 municipalities engaged Cedarburg Municipality meeting held, meeting with Ekurhuleni Municipality held, Masterclasses implemented with City of Tshwane and City of Tshwane engaged on possible Art Bank. Engagements held with Ethekwini on Fashion Hub 26 SELECTED INDICATORS

27 PERFORMANCE INDICATOR 3 rd QUARTER TARGET PROGRESS DESCRIPTION DAC Language policy developed Approval by DAC Language policy adopted on 30 October 2014 before deadline of 2 November 2014 Number of domains for which terminology will be developed Arts and Culture intermediate phase 872 terminologies developed; Arts and Culture intermediate phase 872 terminologies developed HSEMS intermediate phase terminologies developed Mathematics senior phase 926 terminologies developed Life Orientation terminologies developed Life Orientation intermediate phase 1491 terminologies developed 27 SELECTED INDICATORS

28 PERFORMANCE INDICATOR 3RD QUARTER TARGET PROGRESS DESCRIPTION Number of flags and flag poles installed per year National Flags were installed in1650 schools 28 SELECTED INDICATORS

29 PERFORMANCE INDICATOR 3 rd QUARTER TARGETPROGRESS DESCRIPTION Number of National Days hosted (7) 1 National DayDay of Reconciliation, 16 December 2014 was hosted at the KwaZulu- Natal at Ncome Museum Number of Outreach projects implemented (6) 2No Outreach activities were undertaken, Due examinations school visits could not take place and most institutions are preparing for end of the year closure. Officials had to focus on the hosting of the Annual National Oral History conference which took place during the quarter Number of infrastructure projects for libraries, museums and archives implemented Site Visit( OR Tambo)Site visit undertaken on 17 December The construction progress is as follows: the OR Tambo Homestead is 95% completed) The Garden of Remembrance is 57% complete The Khananda Grave site is 78% complete Site Visit (JL Dube )Site visit undertaken on 04 December Construction of the amphitheatre, access driveway and parking is at 70% completion 29 SELECTED INDICATORS

30 PERFORMANCE INDICATOR 3 rd QUARTER TARGETPROGRESS DESCRIPTION Number of infrastructure projects for libraries, museums and archives implemented Site Visit (Bram Fisher house purchased) Site visit undertaken on 17 December 2014 Site Visit (Ingquza phase 1 completed) Site visit conducted on the18th November The construction of the museum is 47% complete. Site Visit (Sarah Bartmann Centre of Remembrance- Beginning of construction Site visits were undertaken to coincide with the Progress and Technical Committee Meetings from October to November As of December 2014, the construction was about 12% 30 SELECTED INDICATORS

31 THANK YOU