1. ACTING DIRECTOR-GENERAL: ARTS AND CULTURE DATE: 12/04/2016 PACOFS

2. 2 PERFORMANCE OVERVIEW (as at third quarter of 2015/16) 2

3. 3 THREE YEAR PERFORMANCE OVERVIEW 3 2012/132013/142014/152015/16 ( 3 rd quarter) Achieved46%41%52%31% Not achieved54%59%48%69%

4. 4 INCOME AND EXPENDITURE TRENDS 4 Notes: Financial statements of 31 March 2015 reflect that current liabilities exceed current assets by R44 698 856 The declared deferred income of R46 858 262 is not covered by the cash and cash equivalents (which reflect a balance of R16 953 549) R12 297 has been incurred as fruitless and wasteful expenditure in 2015/16 and R7 665 604 was incurred as irregular expenditure 2012/132013/142014/15 2015/16 (3 rd quarter) R’000 Income47,80141,79741, 67732 039 Government Grant40,16138,82537,47029,524 Own Income7 6402 9724 207 2 515 Expenditure58, 14944,80948,08226,830 Surplus/Deficit(10,348)(5,984)(6,405)5,209

5. 5 AUDIT OUTCOME 5 PACOFS2012/132013/142014/15 Audit OutcomeUnqualified

6. 6 GOVERNANCE 6 PACOFS2012/132013/142014/152015/16 Number of Council members7978 Number of Council meetings6423 Number of Council committee meetings 3244 Attendance rate of Council meetings 43%35%75%81% Number of Audit Committee meetings 4421 Number of Management meetings 47185 Number of Staff meetings1671

7. 7 CHALLENGES RELATING TO THE 2016/17 APP Not all performance indicators and targets adhere to the SMART principle Persistency by the entity to add operational indicators and targets on their APPs Entity organisational structure needed to be updated with the current approved structure Technical Indicator Description template: some indicators listed on this document did not read the same as the ones in the actual APP. It is important to mention that, some of the public entities do not comply with the recommendations given by the DAC through the appraisal feedback reports with the view to improve quality of their APPs. This pose a problem as these plans may not meet all the required standards. 7

8. 8 CHALLENGES AND INTERVENTIONS CHALLENGESINTERVENTIONS BY DAC LEADERSHIP: Resignations by Council Deputy Chairperson Recent Resignation by Chair of Council due to Health Submission to replace the resignation is on route EXECUTIVE MANAGEMENT: Delay in the appointment of Executive Management by Council i.e. CFO; Artistic Director; and Marketing Director CFO has been resolved by the Council & appointment has to be made Artistic Director interviews are still to be confirmed (24-28 March 2016) An offer has been made for the Marketing Director and expected to start May 2016 SUSPENSION OF THE CEO: Slow pace to finalise the Disciplinary Process of suspended CEO The final date for the Disciplinary is 3-6 May 2016

9. 9 CHALLENGES AND INTERVENTIONS CHALLENGESINTERVENTIONS Auditor General concerns on financial sustainability of PACOFS This relates to unaccounted funds highlighted in slide 4 above i.e. Inconsistencies on Financial Statements indicating missing funds. A full forensic audit to be conducted Burglary was reported 31 March 2016A case has been opened by entity. Relations with Provincial & Local government counterparts New partnerships and collaborations have been forged with the Province

10. 10 THANK YOU 10