Purpose of the Presentation Vision and Mission Key Strategic Objectives and their Performance Overview Overview of Council Activities and Responsibilities Artistic Programmes (Highlights for the Year) Infrastructure / Capital Projects Actual vs. Budget & Budget vs. Actual Report of the Auditor General Emphasis of Matters by the Auditor General Report On Other Legal & Regulatory Requirements Institutional Challenges Conclusion PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER

To brief the Portfolio Committee on Arts and Culture on the overall performance of PACOFS during the 2012/2013 financial period. To provide an overview of the activities in response to the constitutional and legislative mandate, policies, programmes and corporate plans. To solicit the Portfolio Committee ’ s inputs on the strategic interventions that may be required to fulfill the constitutional and legislative mandate in order to achieve the vision and mission of the PACOFS. PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER

Vision  To be an ultimate professional performing arts destination. Mission  Presentation of quality transformed performing arts. PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER

PACOFS Councils  Council Activities & Responsibilities:  Strategic Plan, Annual Performance Plan and Infrastructure Master Plan for 2012/13, were done and tabled by 31 Jan  Signing of Share Holder’s Compact 2012/13 with the Minister of DAC - Mr. Paul Mashatile on 02 April 2013 at Castle in Cape Town.  Annual Report 2012/13 was submitted and tabled to DAC on the 28 August  Council and Management Strategic Workshop was held on 17 & 18 October PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER

KEY STRATEGIC OBJECTIVES Programme 1 - To provide and maintain high quality financial management Programme 2 - To develop, educate, promote and present the arts in a functional Theatre environment Programme 3 - To ensure effective and efficient electro-technical, stage and maintenance services 5

PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER 2013 PACOFS - KEY STRATEGIC OBJECTIVES Programme 1 - To provide and maintain high quality financial management Programme 2 - To develop, educate, promote and present the arts in a functional Theatre environment Programme 3 - To ensure effective and efficient electro-technical, stage and maintenance services 6

 INTERNATIONAL EXCHANGE PRODUCTION  Tsoho Dance group – Zimbabwe (21 – 27 October 2013)  PARTNERSHIPS / CO-PRODUCTIONS (Sand du Plessis Theatre)  We have hosted 14 partnerships/co-productions, such as;  Moscow Ballet – International (Jun 2013)  Miss Free State (Apr 2013)  My vrou se man se lyk se tas (May 2013)  IN-HOUSE / OWN PRODUCTIONS SHOWS (Andre Huguenet theatre)  We presented 6 in-house productions; such as Tselani and the Giant, Fame the Musical and Mandela Concert. (Apr to Oct 2013)  DAC TOURING VENTURE PROJECTS – PACOFS OWN PRODUCTIONS  Pacofs toured local productions such as:  Dark Voice Rings – Windybrow Theatre (Sept 2013)  Footsteps – Market Theatre & Stable Theatre (May & Jul 2013)  Madonna Excelsior - Grahamstown National Arts Festival (Jun/Jul 2013)  We shall sing for the Father Land to other Theatres – Windybrow Theatre(Sept 2013)  Mafukuzella Music Production – Arts Cape (May 2013) PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER

 COMPLETED INFRASTRUCTURE PROJECTS  Sand Du Plessis Theatre: New Carpet  Office Renovations: Administration Block  Occupational Health and Safety: Upgrading of building to accommodate Disabled Persons (Restrooms)  Workshop Theatre: New Roof and Insulation  CURRENT INFRASTRUCTURE PROJECTS  Fire and Smoke Detection System (in progress)  FUTURE INFRASTRUCTURE PROJECTS  Upgrade of the Security Entrance  Workshop Theatre: Relocation of the existing workshop  Mechanical Ventilation and Air-conditioning System for the Complex  Branding of the Theatre Building as the Public entity for DAC  Implementing 3 rd phase of the Infrastructure Master Plan (Depending on availability of Capital Funding from DAC) PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER

9 BUDGET vs. EXPENDITURE PER PROGRAMME: ORIGINAL BUDGET HALF YEAR BUDGET HALF YEAR ACTUALS BUD vs. ACT VARIANCE HALF YEAR FORECAST FULL YEAR FORECAST VARIANCE EXPLANATION 2013/2014 R '000 HALF YEAR Programme 1 / Administration CEO Personnel Costs Programme 2 / Artistic Directorate (1 006) Development & Productions Programme 3 / Technical Directorate Open Vacancies Total Savings Description2013 Actual (R’000) 2013 Budget (R’000) 2013 Variance (R’000) Variance Explanation Total Revenue (10 856) Shows with low revenue and under recovery on Programme 1 Total Expenditure(58 149)(58 658) 507 We have 0.88% underspending on Expenditure Surplus / (Deficit) for the year(10 349)- Shows with low revenue and under recovery on Programme 1

 Opinion by the Auditor General  Unqualified Audit Opinion, refer (Point 32) on the AG Report.  Emphasis of Matter  Restatement of corresponding figures  Irregular Expenditure  Going concern  Predetermined objectives  Action Plan  Appointment of the CEO and Artistic Director (Interview date is the 14 – 15 Nov 2013)  Financial and Supply Chain Manager positions have been filled.  Strengthen internal control. PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER

PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER EMPHASIS OF MATTERS ACTUAL FINDINGS CORRECTION PLAN ESTIMATED DUE DATE 1. Irregular Expenditure Lack of skills and risk assessment in SCM resulted in (R23m) irregular expenditure Currently under investigation by internal audit and have appointed SCM Manager Nov Fruitless and Wasteful Expenditure Salary paid to employee on suspension of CEO (R2.4m). This is the issue that was not attended by previous management and council Currently under investigation by internal audit Nov Predetermined Objectives Lack of useful information resulted in 43% major variance could not be supported by corroborating evidence. Monthly management accounts and GL reconciliations have been implemented Implemented Since Sep Internal Audit Concerned about the burden on Acting CEO, while holding CFO Interview date for CEO position has been set on 14 – 15 Nov 2013 Nov 2013

 Predetermined Objectives  Material misstatements in annual financial statements were identified and corrected by management.  Expenditure Management  Monthly management account has been developed and implemented to monitor actual expenditure against budget to avoid the overspending. PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER

PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER ChallengesPossible Solutions Already made Interventions Leadership (Appointment of CEO & Artistic Director) Expedition of CEO and Artistic Director Interview date already setup (14 & 15 Nov 2013) Personnel / Staff Costs (70%)Training on key skills Skills development assessment Production Funding/Grants (In-House Shows) Apply for funding from external Funders Yes, already applied Building & Maintenance Budget (Ownership) Meeting with DAC; NATIONAL & PROVINCIAL DPW Meeting with DAC Theatre / Stage Truck (Outreach Programmes)Source new/other sponsorship Request was done to DAC & NT, with no prevail.

 Thank You All !!! PACOFS PRESENTATION TO THE PORTFOLIO COMMITTE ON ARTS AND CULTURE – WEDNESDAY, 23 OCTOBER