an agency of the Department of Arts and Culture ANNUAL REPORT 2014/15 PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON ARTS AND CULTURE

Vital Statistics an agency of the Department of Arts and Culture 2 Revenue Budget R89,647,856 Self-generated Revenue R24,556,278 OPEX Grant Funding R45,040,009 CAPEX GrantFunding R20,051,569 Total Employees98 Total Performance Venues6 Total Performances727 Total Audience Attendance134,664

Chairperson’s Report an agency of the Department of Arts and Culture 3 PREDETERMINED OBJECTIVES We are pleased to announce an overall performance against predetermined targets, as set-out in our 2014/15 Annual Performance Plan, of 76% for the year. This represents an improvement in performance from 2013/14 of 4%. 18 targets have been achieved 7 partially achieved and only 1 was not achieved, against a total of 26 targets for the year. Overall, SAST was nominated for 31 Naledi Theatre Awards. Our artistic highlight for the year was the production Marikana – The Musical. This production was nominated 13 times and successfully won 6 Naledi Theatre Awards. Continuing with our contribution to Nation Building, SAST created 1,660 short- term job opportunities in our In-house productions for the year. Efforts to secure sponsorships did produce valuable partnerships. The South African Broadcasting Corporation (SABC) sponsored airtime on both its television and radio networks. We continued into year two of our three year sponsorship agreement with City Property. Other sponsorships came from various theatres, to which we in turn toured our productions, Audience attendance improved by 2% from 132,081 in 2013/14 to 134,664 in 2014/15

Chairperson’s Report, continued an agency of the Department of Arts and Culture 4 FINANCIAL PERFORMANCE 2014/15 financial year, SAST received operational grants of R million, capex grants of R million and self-generated revenue of R24,556 million. A surplus of R million was realised in the 2014/15 financial year. This was as a result of SAST receiving a capex grant of R million on 31 March Related capex projects are to commence in the 2015/16 financial year. Overall our improved controls over budget management has ensured that we delivered our mandate within our operational budget for the financial year. Unfortunately we received a qualified audit opinion for the 2014/15 financial year. We have now placed our focus on improving internal controls within our finance department and asset management to ensure that we receive a clean audit opinion for the 2015/16 financial year. Property plant and equipment (PPE) and the aggregation of immaterial uncorrected misstatements were the two areas that the external auditors had identified non-compliance in, which resulted in the qualified audit opinion. The audit scope and methodology applied in reviewing PPE changed from the prior year which resulted in unexpected findings being raised in this area. It is important to note that, in no other area of operations was there any occurrence of material non-compliance with the PFMA and National Treasury Regulations that contributed to the qualified audit opinion.

Acting CEO’s Report an agency of the Department of Arts and Culture 5 134,664 patrons visited our theatres during 2014/15, attending a total of 727 performances in 137 productions. In support of our audience development objectives, 15,831 complimentary tickets were provided to prospective theatre goers. Our established Rendezvous programme featuring Jazz and Comedy continued in 2014/15 together with our flagship festivals; Youth Expressions Festival, Vavasati International Women’s Festival and Mzansi Fela Festival. In this year we introduced a formal programme focusing on School Set-works. We also introduced the IndieSpotlight programme in 2014/ productions were staged for 2014/15 which attracted 11,416 patrons. Featuring the best of South African and African artistic works, this programme is set to become a firm feature in our annual calendar. Our internal auditor’s contract term expired 31 March Due to various supply chain challenges, this outsourced function could not be filled during the 2014/15 financial year. Internal audit has now been appointed in September /15 focused on continuing implementation of the SAST Corporate Governance of Information and Communication Technology (CGICT) Policy and Charter, in accordance with the instruction from the Department of Public Service Administration.

Acting CEO’s Report, continued an agency of the Department of Arts and Culture 6 We have recently embarked on a skills audit to attract and retain relevant skills that will ensure achievement of strategic objectives. Opportunity for further training at Institutions of higher learning are accorded to employees to enable them to obtain formal credible qualifications. Succession Planning and career paths programmes are also being implemented Health and wellness of employees play a vital role in the success and achievement of the strategic goals, therefore provision for medical aid subsidy is a priority for the financial year ahead. Although our theatres were well booked, the productions were mainly internal productions performed in the smaller venues where rental income was not derived. Commercial productions for the two large venues did not materialise. No performance was cancelled due to technical faults.

Production Statistics an agency of the Department of Arts and Culture 7

Production Statistics, continued an agency of the Department of Arts and Culture 8

Summary of Performance an agency of the Department of Arts and Culture 9

Programmes an agency of the Department of Arts and Culture 10 Programme 1: Administration Purpose of this programme is to engage in commercial activities which ensure self- generated revenue to augment the Government Grant, to maintain and upgrade our unique Theatre facilities in support of our Artistic ambitions and to ensure its long-term economic sustainability and to comply with applicable Laws, Regulations and Statutory Legislation including the PFMA, the Cultural Institutions Act, Treasury Regulations & LRA. The programme aims to achieve the following SAST goals: Goal 3: Generate revenue from commercial activities which includes Ticket Sales, Rentals, Fundraising and Front of House Sales Goal 4: Ensure long term sustainability of Buildings and Assets Goal 6: Ensure compliance with applicable Laws, Regulations and Statutory Legislation

Programmes, continued an agency of the Department of Arts and Culture 11 Programme 2: Business Development This programme aims to stage the very best In-house developed and externally sourced Performing Arts work, to promote audience diversity and growth by implementing Audience Development Programmes and to promote the outcomes of the government's programme of action by creating job opportunities. The programme aims to achieve the following SAST goals: Goal 1: Stage In-house Performing Arts productions Goal 5: Develop Theatre going Audiences Goal 6: Ensure compliance with applicable Laws, Regulations and Statutory Legislation

Programmes, continued an agency of the Department of Arts and Culture 12 Programme 3: Public Engagement This programme is intended to provide development opportunities for emerging Arts Practitioners to learn, perform and stage their Productions thereby encouraging Socio- Economic Development. The programme aims to achieve the following SAST goals: Goal 2: Provide development opportunities for emerging Arts Practitioners in the context of our programmes Goal 6: Ensure compliance with applicable Laws, Regulations and Statutory Legislation

Organisational Structure an agency of the Department of Arts and Culture 13 Accounting Authority (SAST Council) Chief Executive Officer (A Sekhabi, Acting) Chief Financial Officer (N Soopal) Financial Manager [Vacant] Technical Director (G Viljoen) Stage Services Manager (L Barnard) Maintenance Manager (B Vorster) [Acting] Security Manager (R Motshwene) Parking Manager (E Mashiane) Artistic Director (A Sekhabi) Development Manager (S Blose, Acting) Line-Producer (T Qwabe) Front of House Manager [Vacant] Sales & Marketing Manager (L Mahlabe) Facilities Manager (R Motshwene) Decor Manager (B Lovegrove) Human Resources Manager (M Mopayi) Internal Audit Performance Information Manager (S Ahmed) IT Administrator (S Mullen)

Employment Equity Programme an agency of the Department of Arts and Culture 14

Audit Outcomes an agency of the Department of Arts and Culture 15 Qualified Audit Opinion – Property, Plant and Equipment (PPE) – Aggregation of Immaterial Uncorrected Misstatements Emphasis of matter -Restatement of corresponding figures -Material Underspending of the Budget Predetermined Objective - Clean audit opinion

Audit Action Plan to resolve qualification an agency of the Department of Arts and Culture 16 Detailed action plan addressing the audit opinion raised. An accounting consulting firm will be appointed to resolve the prior years qualification and will assist with control implementation. Interim audit to be performed by AG Skills Audit to identify the current skills gap Asset management system Procurement system Appointment of suitably qualified staff within Finance Internal Audit

Financial information an agency of the Department of Arts and Culture 17 Statement of Financial Performance Description 2015 'R 'R000Variance Income Self generated income Sponsorships Grants (includes capex) Total Income Total expenditure (81 227) (83 367) Fair value adjustment Surplus/deficit for the year (7 727)27 967

Financial information (continued) an agency of the Department of Arts and Culture 18 Statement of Financial Performance Comparison of Actual vs Budget Description 2015 'R 'R000 Variance ‘R000 Total Assets Total Liabilities Net Assets Description Actual ‘R000 Budget ‘R000 Variance ‘R000 Total Income Total Expense Surplus

Key Focus Areas an agency of the Department of Arts and Culture 19 Clean Administration through the centralization of Procurement & Implementation of Compliant Asset Management Processes & Controls Improve Self-generated Income from facilities rentals and productions Market research has indicated that we need to provide holistic entertainment experience in our offering which will be a key focus area in the current year as well as the years to come. This will encompass the introduction of full service restaurants which cater for our diverse patrons needs Our approach to Sponsorship has changed and we have embarked on a process to assess the value of our facility as well as our market and will henceforth trade these values in exchange for sponsorship Expand Scope of Development efforts & Introduce Partnership Approach Introduce Human Resources Grading and Performance Management System Introduce Career Development Programmes for Staff Development